October 22, 2021

Is it smart to lend your parents money?

Although you hear lots of stories about parents supporting their grown offspring, sometimes positions are reversed and it's the kids that have to carry the load. 

We're not talking here about parents who fallen on hard times because of disability or ill health.

No, this is more about dealing with those who've simply made a mess of their financial lives, leaving their grown children to pick up the tab for their irresponsibility -- whether through addiction, divorce, or simply poor money skills. 

What do you do when your parents ask for money? Just say no, advises money guide Dave Ramsey, otherwise you could end up subsidizing them forever. 


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August 14, 2021

Consumer proposals slowly replacing bankruptcies: report

Having lost a bit of its stigma, declaring personal bankruptcy has long been a viable option for people sinking under the weight of unmanageable debt.

So much so that roughly 118,000 Canadians went broke last year, according to the most recent statistics.

It may have a certain 'get out of jail free' appeal, but bankruptcy isn't necessarily an easy — or pleasant — fix for those who fall behind in their payments.

First off, you'll need to a hire a trustee to balance both your and your creditors' rights. Something of a referee, the trustee is there to make certain you understand the rules and that they're applied fairly.

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July 24, 2021

Could a Canadian city go the way of Detroit?

The recent bankruptcy filing in Detroit is raising red flags about other major U.S. cities also cracking under the weight of dealing with billions in retiree benefits and unpaid loans.

Could the same thing happen here?

Canada's municipalities may be unlikely to face the same fate, but the financial fall of Motor City carries lessons for towns and cities in this country as well, suggest some urban planners.

"Detroit is a wake-up call to say that long-term problems can eventually get to you if they're allowed to remain long term," policy consultant Brian Kelcey told CBC News.

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...