Category: Moneywise

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Celebrity chef Gordon Ramsay is a culinary titan and a household name in the restaurant industry. With a global empire of 88 restaurants, earning a total of eight Michelin stars, Ramsay has cemented his legacy as one of the most successful chefs in the world. And his estimated net worth of $220 million also places him among the highest-earning figures in the business.

However, during an appearance on the First We Feast YouTube channel, Ramsay revealed a surprising insight about his industry: one group always holds the upper hand — landlords.

Host Sean Evans, curious about the inner workings of Ramsay’s restaurant empire, asked, “Is there a hidden cost in running a restaurant that most diners are unaware of?”

Without hesitation, Ramsay replied, “Yeah, it’s called rent and labor cost — two big key factors in running a successful business.”

He went on to elaborate on landlords’ unique position in the industry: “Landlords — they win either way. So the more successful you are, the more rent they ask for. The less successful you are, the more demanding they are after the rent.”

Do landlords ‘win either way’?

Ramsay’s blunt assessment highlights a critical dynamic in the restaurant business: the leverage landlords hold in commercial real estate. While restaurateurs may find themselves grappling with thin profit margins, rising labor costs, and fluctuating food prices, landlords maintain a consistent advantage — the rent is always due.

When restaurants thrive, they’re often eager to stay in their prime locations, giving landlords the upper hand to renegotiate higher rents. In some cases, landlords may include percentage rent agreements, where tenants pay a base rent plus a percentage of gross sales exceeding a certain threshold. Under this arrangement, landlords directly benefit from a tenant’s success, as higher sales lead to higher rent payments.

When a restaurant struggles and fails to pay its rent, the landlord’s income stream is also at risk. To mitigate losses, landlords often turn to legal remedies to recover unpaid rent. This may include seizing the tenant’s assets on the premises — a process known as distraint — or initiating court proceedings to claim the owed amounts. In cases of prolonged non-payment or other lease violations, landlords may want to terminate the lease to seek a more financially stable tenant.

Getting a piece of the action

If you’re interested in restaurant real estate, consider exploring names like Four Corners Property Trust (FCPT), a real estate investment trust (REIT) that specializes in owning and acquiring net-leased restaurant and retail properties.

But for those seeking more stability, there’s another food-related real estate segment that demands attention — necessity-based properties.

Think about your go-to supermarket — the one you visit every week. How long has it been in the same spot? Likely for years, if not decades. That consistency highlights the appeal of this sector.

Properties anchored by grocery stores often attract long-term tenants, creating more predictable and reliable cash flow for investors.

Once reserved for institutional and elite investors, this sector has become increasingly accessible to a broader audience. For instance, platforms like First National Realty Partners (FNRP) allow accredited investors with a mininum of $50,000 investment to own shares in grocery-anchored properties without the hassle of finding and managing deals themselves.

FNRP properties are leased to national brands like Whole Foods, CVS, Kroger, and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors enjoy stable cash flow without bearing the burden of tenant-related costs.

Beyond grocery stores, residential properties also provide peace of mind for investors seeking reliability. Just as people always need groceries regardless of the economy, they also need a place to live. That makes housing one of the most dependable and enduring sectors in real estate.

And you don’t need to buy a house to get started. Crowdfunding platforms like Arrived have simplified the process, enabling everyday investors to own shares in rental properties without the large down payments or management headaches typically associated with owning real estate.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets, or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

You founded a business, put everything into it for decades and now you’re ready to sell your company shares and move on.

But, when you sell those shares, you should still make sure to walk away with a very valuable asset — the “key person” insurance policy the company took out on you in case you pass away.

A majority of Canada’s baby-boom era business owners are at a crossroads, with 76% saying they plan to sell out or transfer ownership to the next generation within the next decade, according to a Canadian Federation of Independent Business report. That is over $2 trillion in business assets that will likely change hands within the next ten years.

If you’re among those founders and want to hang on to that insurance policy, you should know that transferring it is doable, but can come with a tax hit.

Why companies insure their own people

There are three main reasons why a private corporation insures the lives of its key people, says Kevin Wark, tax advisor for the Conference for Advanced Life Underwriting and Managing Partner at Integrated Estate Solutions in Toronto.

First, the company has borrowed money and the lender asked for security in the form of life insurance on the owner/managers. That insurance becomes collateral to ensure the business’s loans can be repaid if a key person dies.

“The policy protects the financial institution as well as the key people’s families, because they won’t be burdened with any debt the company took on,” says Wark.

Second, two or more shareholders have a legal agreement to buy each others’ shares. Raising the cash to buy them can be challenging if an owner dies, so the company buys insurance that will fund the cost of acquiring those shares.

Third, if it’s a family-owned business that will be passed on to the owner’s children, they may want the insurance money to go to the estate and pay the taxes on the growth in value of the company shares that will be inherited.

Why a business seller would want to keep the insurance

You probably started your business when you were young and bought a permanent insurance policy to ensure coverage would last the entire time you own your company.

Permanent insurance products also have level premiums and can eventually be fully funded. So, when you decide to sell, the corporation’s policy on your life may have considerable cash value built up inside the policy’s savings component.

“The company paid the premiums for a number of years and that creates a value in the policy,” says Wark.

Now all you need to do is get the insurance out of the business and put it into a structure that pays it to your estate or your named beneficiaries.

Watch for tax consequences

You’ll need to move the policy tax-efficiently, Wark says. There are two main issues.

First, the transfer of the policy is treated like a sale and rules in the tax act spell out how much value the policy has gained since it was taken out.

For transfers to a shareholder, the tax act calculates the proceeds as the greater of three amounts: the cash-surrender value of the policy, the cost of the policy and whether cash or other consideration was paid for the policy.

Wark says there could also be a taxable gain for the corporation. If you don’t pay for the policy when you sell your shares and the policy gets transferred, the Canada Revenue Agency (CRA) could say you received a taxable benefit equal to the fair value of the policy.

“It’s a transfer of an in-force policy, and the fair-market value of that policy could be high,” Wark says.

That can be particularly true for someone who’s older, or in poor health, and would have a hard time getting a replacement policy.

Plan ahead to prevent a tax hit

The worst-case scenario for taking a policy out of a company is for them to transfer it to you without any payment being made. That could trigger tax reporting within the company because the CRA sees it as a policy sale. Plus, there’s a shareholder benefit equal to the fair-market value of that insurance policy.

“We see situations where policies are transferred because the person hasn’t gotten advice,” says Wark. “All of a sudden, they have to deal with these very adverse tax consequences.”

A better solution is for the company to pay the policy out to you as a dividend, but at its full value. So, if it was a $1 million policy with a $100,000 cash-surrender value, Wark says, you’d take it to a valuator and they would say it’s worth $200,000.

“We convert that to a $200,000 dividend and pass the policy out as payment,” he says. “That way you get the dividend tax credit and the total tax liability is lower.”

But, the best way to transfer a policy is to do what’s called a share reorganization. You set up a holding company (that you own) and insert it between yourself and the operating company that you’re selling.

The operating company then pays out the insurance policy as a dividend to the holding company.

“Generally, dividends paid between corporations and holding companies are tax free,” says Wark. “So the policy goes into the holding company, which the shareholder continues to own after selling the operating company.”

There’s still one concern: A provision of the tax act could convert the dividend into a capital gain under certain circumstances.

“You can deal with it by having a holding company in place [when you start your business] so that it owns the insurance,” says Wark. “The holding company or operating company can be the beneficiary. And because the policy is not transferred out of the holding company, the negative tax consequences can be avoided.”

In other words, plan way ahead.

Sources

1. CFIB: Over $2 trillion in business assets are at stake as majority of small business owners plan to exit their business over the next decade (Jan 10, 2023)

This article Planning on passing off the business you found in hopes of retiring? Be mindful of this potential tax hit when doing so originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Managing your finances is a difficult enough task as an individual, but when it becomes intertwined with someone else, the layers of difficulty expand. This becomes especially true if the person you share your finances with is abusive.

According to Statistics Canada more than 11 million people in Canada have experienced intimate partner violence (IPV) at least once since the age of 15. In 2023, of the 123,319 people aged 15 and over who experienced IPV, 78% were women.

But for those who are ready to leave an abusive situation, another problem arises: money.

And overlooking finances in your plans can lead to costly and heartbreaking situations down the line.

Your financial security is your future

Deciding to leave an abusive partner is all about regaining control, says Betty-Anne Howard, a financial planner with Athena Wealth and Legacy Solutions in Kingston, Ont.

Howard, who has a master’s degree in social work, says that’s part of what makes leaving these situations so dangerous.

“When you leave an abusive partner, they’re feeling as though they can’t control you anymore,” says Howard. “And so then that accelerates and magnifies how that person is going to try to get control.”

And what better way to try to control someone than by attacking their finances?

Whether racking up purchases or withdrawing funds from a joint account, cutting off payments or threatening expensive legal actions, threatening someone’s financial security puts their entire future at risk.

The first step is finding help

Cindy Scharff, a family lawyer with Gelman and Associates in Barrie, Ont., says while safety is always the number-one concern in cases of intimate partner violence, how someone is going to leave should be their next thought. And in most cases, that will involve access to money.

“A lot of people are starting from zero trying to figure out: Well, what do I even have? And then, what do I need? Both of those can be big unknowns to people when they’re trying to figure out how they can do this,” says Scharff.

Howard emphasizes that it’s important women in this situation seek out “good help,” or people who won’t bully them into action. Those seeking to leave an abusive situation need to be able to make their own decisions in their own time.

But there are some things that can’t wait until someone feels emotionally ready. Howard says if your partner is your named beneficiary on any registered accounts, life insurance policies or your power of attorney, it’s important to remove your partner from those documents right away.

Not doing so can cause problems well after you’ve moved on with your life, Howard says. She often hears of cases where couples have split up and it’s only when someone dies years down the road that it’s discovered their former partner is still their beneficiary on everything.

On top of that, women leaving abusive situations will often want to wash their hands of their former partner, says Scharff.

But especially when children are involved, Scharff encourages clients to envision their future and what they’ll need financially to accomplish their goals. That means not turning down alimony, child support or your share of the marital assets.

Howard adds she often reminds women the support they’re entitled to could make a huge difference in their lives. Understanding their rights and picturing their future selves can encourage women to fight for what they’re owed.

What to do when you don’t have money to leave

While some can afford the time to get through these situations, others may not be in a position to afford professional help like a lawyer or financial advisor.

Community organizations help fill a void when support is otherwise out of reach. Howard recommends reaching out to local shelters or transitional housing to learn what supports are available in your community.

Every province and territory offers legal aid services, which makes it possible to seek support navigating the justice system, regardless of income.

One province that is going beyond the basic level of support is Alberta, which provides residents with a family violence credit to help cover the immediate costs associated with leaving an abusive home.

Along with the province’s other intimate partner violence programs, Justin Marshall, press secretary for the government of Alberta, says his employer takes the threat of family violence seriously.

“Giving people access to the right information could potentially save their lives,” says Marshall.

Quebec also stepped up its support for survivors last year, announcing it was setting up a hotline, 1-833-REBATIR, for victims of intimate partner violence to receive free legal advice. And in the fall, the province also allocated the money to create an emergency fund like Alberta’s.

Find your network

Howard says support is out there for survivors looking for help — even if it may take some digging to find.

She adds she would never turn away a woman looking for support, and that many financial advisors would look for resources or connections to help a woman in need.

Scharff adds that calling your financial institutions to give them a heads up of the situation can help protect you from any retaliatory actions. In some situations, lawyers can file an emergency motion to freeze certain assets — but that can take time, and the other party will be notified.

Even when it comes to collecting documents, survivors need to be careful. Round up everything with your name on it, but keep in mind that you can be legally liable for damages if you invade someone’s privacy to access their financial records.

“First and foremost … they have to do what they need to keep themselves safe,” says Scharff. “But also putting their mind ahead of time to how the financials are going to work is key to being able to get out and being successful once they’re out there.”

Sources

1. Statistics Canada: Facts, stats and WAGE’s impact: Gender-based violence

This article How to protect your finances when leaving an abusive partner

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Suze Orman has a lot to say about Social Security.

For one, she encourages her podcast listeners to avoid relying on its payments to support them completely in retirement. On the flipside, she emphasizes that although its annual shortfall is projected to reach $100 billion this year, Social Security will not disappear outright.

In fact, she called this claim “fearmongering” in a blog post from 2021.

However, warnings of Social Security’s looming shortfalls have only increased since then.

The program’s benefit payments have exceeded its revenue each year since 2021. Although this year’s monthly payment adjustment is the smallest since 2021, the Social Security Administration (SSA) trustees project the trust’s funds will be depleted by 2035.

Regardless of how the government responds to Social Security’s issues, taking control of your finances is the best way to protect yourself from future risks to the program.

Where, when, and how to retire

Remember that the longer you wait to claim your Social Security benefit, the better the benefit will be. This should be a crucial factor in determining your personal retirement plans.

In a LinkedIn post last year, Orman wrote, “Every month you wait will pay off. If waiting until 70 seems too daunting, why not reframe this as an annual choice? At 62, choose to wait. Then ask yourself at 63 if you want to wait until 64.”

It’s sound advice, but pushing out those payments is easier said than done if you don’t have a solid plan. Having a professional by your side can add confidence and clarity to your financial decisions.

With WiserAdvisor, you can connect with pre-screened fiduciary financial advisors near you.

The process is simple: just enter some basic information about yourself, your financial situation, and your retirement goals, and WiserAdvisor will match you with 2-3 advisors registered with the SEC or FINRA.

This matching process is completely free. You can also set up an introductory meeting with your preferred advisor for free, with no obligation to hire.

Choosing your retirement account

What can you do to make sure you’re reducing your reliance on Social Security? Orman suggests using income from other sources, like a 401(k) or IRA, while you wait out your Social Security benefits.

Roth IRAs

Roth IRAs help you avoid a significant tax burden that can reduce your Social Security payouts once you choose to tap in.

Roth IRAs are not taxed when you make withdrawals, and you won’t pay taxes on capital gains or any income earned from your investments in these accounts. RothIRA.org connects you with pre-screened financial advisors who can guide you in choosing the best Roth IRA to meet your needs.

When you register, you’re custom-matched with profiles of two or three advisors who meet your specific needs. Your financial advisors will then call you to set up your free initial consultation — with no obligation.

Gold IRAs

Beyond the question of which accounts to use for your retirement savings, you’ll also need to consider what to invest in, too.

A gold IRA can help stabilize your finances, allowing you to invest directly in precious metals rather than stocks and bonds.

By opening a gold IRA with American Hartford Gold (AHG), you’re looking out for your future self and cushioning your retirement. That’s because gold has historically acted as a hedge against inflation, and many find it to be a more secure place to invest their retirement fund.

A gold IRA not only gives your portfolio diversification, it can also offer you financial stability for retirement.

Investing in residential real estate

Investing in real estate is another way to diversify your portfolio, as its returns do not closely correlate to that of the stock market. You also don’t need the price of a downpayment to get started.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit rental properties into your investment portfolio, regardless of your salary. Their easy-to-use platform offers SEC-qualified investments such as rental homes and vacation rentals.

The flexible investment amounts and simplified process allow both accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any of the work of becoming a landlord.

You can get started today by browsing a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy and start investing.

Investing in commercial real estate

In December 2024, the Federal Reserve cut interest rates by a further 0.25%. Economists – including those of Goldman Sachs – believe they will continue to decrease rates throughout 2025, which could bring growth to the commercial real estate sector.

Commercial real estate typically appreciates in value when interest rates drop because buyers can afford to pay more for assets at lower borrowing costs. First National Realty Partners (FNRP) is ideally situated to help investors take advantage of the current rate environment.

FNRP offers accredited investors access to these types of promising commercial real estate investments, without the leg work of finding deals.

They specialize in grocery-anchored retail with historically strong return potential, and offer a turnkey investment solution for account holders. As a private equity firm, FNRP acts as the deal leader, providing expertise and doing the legwork so investors can passively collect distribution income.

With a minimum investment of $50,000, FNRP can help provide you a steady stream of income, without the hassle of becoming a landlord yourself.

You can engage with experts, explore available deals, and easily make an allocation, all in one personalized secure portal.

Investing in and for retirement

The key to your future financial freedom is investing as soon as you can. Orman gave a telling example of this during a Wall Street Journal interview last year, explaining, “A $10,000 investment made at age 45 will be worth around $32,000 at age 65, assuming a 6% annualized return. Invest the same $10,000 at age 55 and it will be worth less than $18,000.”

Investing sooner

The benefits of compound interest are obvious, but what’s not so obvious is finding room for investing in your budget. Acorns can help you find the dollars to invest by using your spare change.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even your pennies can grow into a solid nest egg for retirement.

Plus, when you sign up now, you’ll get a $20 bonus investment.

Saving for unexpected expenses in retirement

Finally, an emergency fund can help you keep your budget intact when unexpected expenses arise, ensuring you don’t feel tempted to tap into Social Security funds earlier than you planned.

Orman is a big advocate for emergency funds — not only for the safety they provide in the event of an emergency but also for the stress reduction benefits.

In an August 2024 blog post, she wrote, “women who have managed to save up enough money to cover three months of living expenses were far less likely to be carrying around high levels of stress.”

If you want to make the most of your accessible cash, make sure your everyday bank account is working for you.

For example, SoFi’s checking and savings account can help you make the most of your everyday cash flow. The two-in-one account offers up to 4.20% APY on savings balances and 0.50% on checking account balances.

You can enjoy no-fee overdraft protection, early paycheck deposits, and access to over 55,000 ATMs within the Allpoint network.

Sign up today and you can earn a bonus of up to $300 for setting up direct deposit.

If you’re still trying to decide where to park your emergency fund, don’t just let it sit in a low- or no-interest checking account.

Check out the Moneywise list of Best High-Yield Savings Accounts of 2025 so you can have a streamlined look at what high-yield savings account is best for your savings to grow over time.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The gig economy is a big economy.

According to research by Securian Canada, nearly one-quarter of Canadians (22%) – or approximately 7.3 million adults – are participating in gig work in some capacity across the country. Most gig work is done out of financial necessity, with more than half of gig workers (57%) relying on this type of income to supplement their primary income.

Not unlike online dating, the gig economy has evolved rapidly from its initial status as a last resort for the desperate, to a first option for many Canadians.

The flexibility makes gig work attractive to anyone looking to set their own hours and the relatively low bar to entry makes these temporary jobs, primarily in the service industry, accessible to a large part of the workforce.

But, one area where the gig economy’s development has stalled is providing benefits, like insurance, particularly life insurance. Nearly one-fifth (18%) of gig workers said they do not have insurance — Additionally, 50% of those who rely on this type of work as a primary income revealing they do not have insurance.

If you’re lucky, your gig employer may provide vision, dental and health coverage, but if something more severe happens, what’s your plan?

If your gigs are your household’s sole source of income, what happens if you get critically injured and can’t work for an extended period of time? Who pays the rent? And, if it’s worse than illness, what resources can your family rely on to ensure their bills — and your funeral costs — are paid?

The state of gig worker benefits in Canada

No employer is legally required to provide life insurance to their employees, but many do as a way of attracting, retaining and rewarding their staff.

In 2023, 62% of life insurance in Canada was secured through employer-supported group plans, according to a poll conducted by PolicyMe.

But, with gig employers, offering life insurance appears to be less of a priority. Rideshare giants Uber and Lyft provide fairly generous accident insurance — while you’re driving for them — but offer no group life insurance or critical illness coverage. Food delivery companies DoorDash and Skip the Dishes offer even less auto coverage and no health or insurance benefits.

Be prepared

Providing drivers with more money to put toward life insurance is a positive step, but for it to have any real impact, gig workers need to see life insurance as a priority.

According to the Canadian Life & Health Insurance Association, 75% of Canadians — nearly 30 million — have life insurance. If you’re a gig worker and have so far avoided securing coverage, you may want to join that cohort sooner rather than later.

“Term, permanent, critical illness, disability. These are all things that you need to look at,” says Michael Aziz, chief distribution officer at Canada Protection Plan. “Losing that income can be really disastrous for families.”

Two arguments young, healthy Canadians have against buying life insurance is that it’s expensive and unnecessary. But, accidents and illnesses can come for anyone; they don’t ask to see your ID before putting you on your back. And, the younger you are, the cheaper life insurance generally is.

Choosing the right plan

There is no shortage of insurance products out there for gig workers. Insurance companies are happy to take your money no matter who signs your paycheque.

Finding the right life insurance plan is a matter of balancing the cost with your budget, lifestyle and potential insurance needs. That’s a calculation that’s likely to require some professional guidance.

“You need to do a needs analysis,” says Aziz. “Maybe you have some student loans, or you have a mortgage or a car loan or some other liability that you want to protect against. Build your portfolio to match that.”

Applying for insurance doesn’t need to get in the way of your gig-hopping. Non-medical and simplified issue policies allow you to buy life insurance without having to visit a doctor or answer too many health questions. However, be aware that these policies usually come with higher premiums since the life insurance companies have less information to evaluate your health, which poses a higher risk to them. Additionally, flexibility and policy options are limited compared to a fully underwritten life insurance policy.

Nothing’s guaranteed when you’re trying to make a living in the gig economy, including your health. Looking into your life insurance options is one way of chipping away at the mountain of uncertainty you face everyday.

Sources

1. Securian Canada: More than half of gig workers rely on supplementary income; rising costs drive many to seek additional employment (Oct 8, 2024)

2. PolicyMe: Key Canadian life insurance statistics, by Cristina DaPonte (Apr 28, 2023)

3. Canadian Life & Health Insurance Association: Canadian Life & Health Insurance Facts 2024 edition

This article So you’ve joined the gig economy; What are you doing about life insurance? Here’s what you need to know originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

After a health crisis, discovering a lien on your home for unpaid medical bills would be a shock — but it’s one thousands of Atrium Health patients faced. Atrium, one of North Carolina’s largest hospital systems, recently canceled 11,500 such liens, relieving affected families.

These liens, though legal, allowed the hospital to claim payment if a homeowner sold or refinanced their property.

One patient, grieving his wife’s death and battling cancer himself, was pursued in court over medical debts tied to a deed of trust with Atrium. Health advocate Rebecca Cerese criticized the added stress on struggling families.

“Dealing with an illness or loss of a loved one is hard enough,” said the health policy advocate at the North Carolina Justice Center. “We should not be compounding that with this additional stress of facing financial ruin.” Atrium has since reversed course, citing a commitment to easing financial burdens and rebuilding trust.

Liens: A common tool for recovering debt

The Atrium Health case highlights a national crisis as medical debt surpasses $220 billion, according to a February 2024 Kaiser Family Foundation report.

While hospital liens are a legal last resort to recover unpaid bills, critics argue they are ethically questionable, especially for financially struggling patients. An Urban Institute study revealed that nearly two-thirds of adults with overdue medical debt earn well below their area’s median income.

For individuals burdened by medical debt, consolidating can be a practical step toward financial stability; services like Credible offer an efficient way to manage that debt repayment journey.

Through their online marketplace, you can access personalized loan offers from vetted lenders, helping you streamline payments with a fixed rate instead of juggling multiple bills.

Simply provide basic information, and Credible will present loan options tailored to your needs, empowering you to tackle medical debt more effectively.

Tips for managing medical costs without risking financial stability

Navigating a health crisis without accumulating debt is difficult, and just one major health event can drastically change the financial picture — even for those who are financially stable. However, there are practical steps everyone can take to manage expenses and avoid financial distress.

Know your options

Medical debt is the leading cause of bankruptcy in the U.S., with over 56 million people struggling annually. These expenses often stem from unavoidable costs like emergency care, hospital stays, and prescription drugs.

With healthcare costs among the highest globally, 2023 premiums averaged $8,435 for single coverage and $23,968 for families.

To manage medical expenses, start by negotiating bills and seeking financial assistance. Hospitals often offer help to low-income or uninsured patients, including discounts for upfront payments or charity care policies.

Nonprofit organizations like the Patient Advocate Foundation and HealthWell Foundation provide grants or loans to ease high medical costs.

For those with high-deductible health plans, a Health Savings Account (HSA) allows you to save tax-free for qualified medical expenses, reducing taxable income.

Also, avoid using high-interest credit cards for medical bills; instead, consider low-interest medical loans designed for healthcare costs, which offer more affordable terms.

Build an emergency fund with high-yield savings options

Facing medical debt can feel overwhelming, but building a financial safety net is a powerful way to regain control. High-yield savings options offer a low-risk way to grow your money while preparing for unexpected expenses.

If you’re looking for safe, high-return options, certificates of deposit (CDs) are a great choice, and SavingsAccounts.com makes finding the best ones easy. Their comparison platform provides real-time data on CD rates and terms from various banks, offering tailored recommendations to maximize returns.

Ideal for conservative savers and long-term planners, this tool simplifies the decision-making process, helping you grow low-risk, high-return investments without the stress.

For a flexible and accessible option, you can also make your money do a little work for you by placing it in a high-yield bank account, like the ones offered by SoFi.

SoFi offers a no-fee checking account and a savings account with a 4.60% APY.

With SoFi, you can enjoy no-fee overdraft protection, early paycheck deposits and access to over 55,000 ATMs within the Allpoint network.

Speaking of deposits, sign up now and you can earn a bonus of up to $300 for setting up direct deposit.

Want to see more high-yield banking options? Our curated selection of the best high-yield savings accounts of 2025 can help you find the right fit for your financial goals.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

For the first time in Canadian history, insured damage caused by severe weather events surpassed $8 billion, according to Catastrophe Indices and Quantification Inc. (CatIQ). The $8.5 billion total flew past the $6 billion from 2016, when the Fort McMurray wildfires destroyed almost 600,000 hectares of land and destroyed 2,400 homes and businesses.

"Sadly, beyond the staggering financial losses are hundreds of thousands of Canadians whose lives and livelihoods have been upended," Celyeste Power, Insurance Bureau of Canada (IBC) president and CEO, said in a statement.

"Canada’s property and casualty insurers have been there every step of the way, and continue to be on the ground, helping their customers rebuild and recover. The industry is doing its part, but it’s time for governments to take decisive action to protect Canadians from these escalating and dangerous events."

The 2024 total is nearly triple the total insured losses recorded in 2023 and 12 times the annual average of $701 million in the decade between 2001 and 2010.

2024 hit hard by natural disasters

The summer of 2024 stands out as the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms. In just two months, July and August, four catastrophic weather events resulted in over $7 billion in insured losses and more than a quarter of a million insurance claims – 50% more than Canadian insurers typically receive in an entire year.

According to CatIQ, the single most-destructive weather event in 2024 was the August hailstorm in Calgary, Alberta, that caused $3 billion in insured losses in just over an hour, and flooding continued to cause significant damage in nearly every region across the country.

According to a release, IBC is stressing the disproportionate impact these catastrophic events are having on home insurance costs. Since 2019, Canada has experienced a 115% increase in the number of claims for personal property damage and a 485% increase in the costs for repairing and replacing personal property.

The 10 most severe weather losses of 2024

CatIQ provided a list of the 10 most impactful weather-related losses of the year, based on their own data. They are:

• $100 million from the Western Canada deep freeze: Jan. 12 to 15
• $60 million from Manitoba hailstorms: May 16
• $135 million from Saskatchewan severe storms: June 23
• $990 million from the Toronto and GTA flash floods: July 15 to 16
• $1.1 billion from the Jasper, Alberta wildfire: July 22 to Aug. 17
• $3 billion from the Calgary hailstorm: Aug. 5
• $2.7 billion from the remnants of Hurricane Debby in Quebec: Aug. 9 to 10
• $110 million from the GTA and Southern Ontario flooding: Aug. 13 to Sept. 16
• $120 million from Southern BC storms: Oct. 18 to 20

"Canada is clearly becoming a riskier place to live, work and insure. As insurers price for risk, this increased risk is now impacting insurance affordability and availability," Craig Stewart, IBC’s vice-president of climate change and federal issues, said in a press release.

"Canadian governments must be more proactive to properly manage and mitigate risk. Governments need to invest in infrastructure that defends against floods, adopt land-use planning rules that ensure homes are not built on flood plains, facilitate FireSmart in communities in high-risk wildfire zones and implement long-delayed building codes that better protect homes and livelihoods."

This article 2024 was the most expensive year for weather-related losses in Canadian history originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Shaquille O’Neal was long known for his dominance on the basketball court, earning $292 million as a player in the NBA. But his legacy off the court is equally remarkable, building on his fortune as a savvy investor while staying in the public eye as an analyst on TNT’s “Inside the NBA” broadcast.

His financial journey started with a costly lesson — he often recounts that he blew his first $1 million paycheck in one day on cars and jewelry before learning he had to pay taxes — yet he found motivation to clean up his act.

“I saw horror stories about how five years after professional athletes stop playing, they have nothing,” Shaq explained during an interview with social media personality James Dumoulin published Dec. 12. “I didn’t want to be part of the horror stories, so I had to teach myself.”

Being a professional athlete is a glamorous but short-lived career. According to research by RBC, athletes typically retire before the age of 30 — with an average retirement age of 28 for NBA players. Few become superstars with the earning potential and longevity of Shaq — who played 19 seasons in the league — while many others may not acquire his financial discipline.

Dumoulin pressed Shaq on how he managed to preserve his vast fortune. The basketball Hall of Famer didn’t hesitate to answer.

“I think for those who are not financially literate, learn this word: annuity,” he said.

The magic word

An annuity, in simple terms, is a financial product that provides a steady stream of income, often used for retirement or as a tool to safeguard wealth over time. It can be structured to pay out regularly for a set number of years or even for life, making it a powerful way to ensure financial stability.

While Shaq didn’t go into detail about his specific investments, his advice underscores the importance of financial literacy and the use of strategies that prioritize long-term security over short-term splurges. For professional athletes like Shaq, whose peak earning years can be short-lived, tools like annuities offer a way to convert substantial but finite earnings into a lasting income stream.

In fact, when it comes to financial discipline, Shaq shared a piece of advice he once received: “Save 75% and have fun with 25%.”

The save-and-invest mentality is what enabled him to build upon his fortune. He was an early investor in Google and invested in Ring before its acquisition by Amazon. He also operates a large portfolio of restaurant franchises.

For those without the benefit of an NBA-sized paycheck, saving three-quarters of your income might seem out of reach. However, the core lesson remains universal: whether you’re earning millions or living on a modest salary, knowing how to invest your money wisely — including the use of tools like annuities — can set the stage for long-term financial success.

Start small, build big

Many insurance companies offer annuity products that allow you to invest money upfront — either as a lump sum or through regular payments — in exchange for guaranteed income in the future. You can choose from different types, such as fixed annuities, which provide a guaranteed payout, or variable annuities, where returns are tied to market performance. The key is to find a product that aligns with your goals and risk tolerance, offering you the ability to build wealth steadily without requiring a large upfront investment.

For those looking to diversify, investing in dividend stocks is another way to generate passive income. Many blue-chip companies pay regular dividends — a part of their profits — to shareholders. Some of these companies even raise their payouts annually, making them an attractive option for investors seeking a reliable and growing stream of income in retirement.

Again, you don’t have to start big. One accessible way to start investing dividend stocks is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in a diversified portfolio with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Passive income from real estate

Real estate is another compelling investment option that aligns well with Shaq’s emphasis on financial tools like annuities, thanks to its ability to generate consistent cash flow through rental income.

It can also serve as a hedge against inflation: when inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust for inflation.

And you don’t need millions to get started. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Shaquille O’Neal was long known for his dominance on the basketball court, earning $292 million as a player in the NBA. But his legacy off the court is equally remarkable, building on his fortune as a savvy investor while staying in the public eye as an analyst on TNT’s “Inside the NBA” broadcast.

His financial journey started with a costly lesson — he often recounts that he blew his first $1 million paycheck in one day on cars and jewelry before learning he had to pay taxes — yet he found motivation to clean up his act.

“I saw horror stories about how five years after professional athletes stop playing, they have nothing,” Shaq explained during an interview with social media personality James Dumoulin published Dec. 12. “I didn’t want to be part of the horror stories, so I had to teach myself.”

Being a professional athlete is a glamorous but short-lived career. According to research by RBC, athletes typically retire before the age of 30 — with an average retirement age of 28 for NBA players. Few become superstars with the earning potential and longevity of Shaq — who played 19 seasons in the league — while many others may not acquire his financial discipline.

Dumoulin pressed Shaq on how he managed to preserve his vast fortune. The basketball Hall of Famer didn’t hesitate to answer.

“I think for those who are not financially literate, learn this word: annuity,” he said.

The magic word

An annuity, in simple terms, is a financial product that provides a steady stream of income, often used for retirement or as a tool to safeguard wealth over time. It can be structured to pay out regularly for a set number of years or even for life, making it a powerful way to ensure financial stability.

While Shaq didn’t go into detail about his specific investments, his advice underscores the importance of financial literacy and the use of strategies that prioritize long-term security over short-term splurges. For professional athletes like Shaq, whose peak earning years can be short-lived, tools like annuities offer a way to convert substantial but finite earnings into a lasting income stream.

In fact, when it comes to financial discipline, Shaq shared a piece of advice he once received: “Save 75% and have fun with 25%.”

The save-and-invest mentality is what enabled him to build upon his fortune. He was an early investor in Google and invested in Ring before its acquisition by Amazon. He also operates a large portfolio of restaurant franchises.

For those without the benefit of an NBA-sized paycheck, saving three-quarters of your income might seem out of reach. However, the core lesson remains universal: whether you’re earning millions or living on a modest salary, knowing how to invest your money wisely — including the use of tools like annuities — can set the stage for long-term financial success.

Start small, build big

Many insurance companies offer annuity products that allow you to invest money upfront — either as a lump sum or through regular payments — in exchange for guaranteed income in the future. You can choose from different types, such as fixed annuities, which provide a guaranteed payout, or variable annuities, where returns are tied to market performance. The key is to find a product that aligns with your goals and risk tolerance, offering you the ability to build wealth steadily without requiring a large upfront investment.

For those looking to diversify, investing in dividend stocks is another way to generate passive income. Many blue-chip companies pay regular dividends — a part of their profits — to shareholders. Some of these companies even raise their payouts annually, making them an attractive option for investors seeking a reliable and growing stream of income in retirement.

Again, you don’t have to start big. One accessible way to start investing dividend stocks is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in a diversified portfolio with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Passive income from real estate

Real estate is another compelling investment option that aligns well with Shaq’s emphasis on financial tools like annuities, thanks to its ability to generate consistent cash flow through rental income.

It can also serve as a hedge against inflation: when inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust for inflation.

And you don’t need millions to get started. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s not always easy to save for retirement. After all, 46% of Canadians live paycheck to paycheck per Leger, which means that many may find it hard to find the available funds to build a nest egg. But any extra you can set aside will pay off in retirement — and possibly change your life before you retire.

Surprisingly, an extra $1,000 a month in savings may be right in front of you. Here are five ways you might be able to save more money.

#1. Start with a budget

The first step in determining how you might be able to save an extra $1,000 a month is to examine your spending and then make a budget. By itemizing all your expenses, you can get a better idea of where you might be able to comfortably cut back. Setting up a sustainable budget can keep you on track and help reduce unnecessary and impulse purchases.

#2. Take a bite out of your food expenses

The average, four-person family, spent about $16,295 in 2024, an increase of $702 from 2023, according to Agri-Food Analytics Lab. Despite the large chunk food takes out of your monthly budget, foot costs is one area where you may be able to reap some big savings. For instance, have you examined what you spend on takeout? Give that prices at restaurants and other food and drink establishments rose 5.1% in 2024, compared to 2023, according to Statistics Canada, eliminating the cost of takeout and eating is a quick way to cut food costs.

Most of us know the cost of that morning coffee we grab on the way to work adds up, but it’s also likely a small luxury we’d like to keep. One way to save is to grab a coffee, but skip the pastry you’re grabbing with it ― and try to pack a lunch for work.

Plan and prep your meals for the week if you can. Make it a habit to go grocery shopping ahead of time so you’re less tempted to grab takeout on the way home. Don’t neglect to check flyers for your local grocery store to take advantage of what’s on sale and consider adhering to the old-fashioned — but effective — practice of using coupons whenever you can.

#3. Put the brakes on your transportation expenses

While food is a major cost, Canadians also spend on transporation. According to Statistics Canada, Canadians spent $45.8 billion last year on getting around — or 13.6% of the total household budget. Some people might be paying too much for a vehicle — or paying for a fancier vehicle than they really need.

While it may not be realistic to get rid of your car at this point, you can cut back on costs by walking more, taking public transportation when possible or even carpooling to work more often. This can save on gas and parking, and may help to reduce wear and tear expenses for your vehicle.

It may even reduce your insurance costs, as they’re often affected by the number of miles you drive. It’s also a smart idea to shop around for car insurance or see where you can cut costs on premiums.

#4. Don’t forget to unsubscribe!

Take a hard look at your memberships and subscriptions, since they’ve probably piled up over the years. A staggering 73% of Canadians admit to having subscribed to a service when a free trail period or a promotional price was offered, with the intention of unsubscribing, but did not do so in time. A further 66% of Canadians admit to having paid for a subscription they had forgotten they had, according to research by Hardbacon, a personal finance application.

If you’re still paying for cable, consider switching to a streaming service. If you’re paying for multiple streaming services, consider cutting that down to one. Plus, it’s not difficult to stop one service and start another to get the programs you want.

Can you reduce your phone bill? Are you paying for online magazines that automatically renew but you never read them? What about apps that auto-renew? Are you still getting enough use out of them? Is it possible to work out at home and cut the gym membership? Or move to a cheaper gym? Look at all your renewable contracts and decide if they can be cut, renegotiated or reduced.

#5. Get big gains by cutting small expenses

When you look at your expenses, look for small things that add up. If you’re spending a lot on books, consider getting a library card. If you buy a lot of bottled water, start using a refillable water bottle instead. Can you get by with fewer manicures? Cutting back on regular small expenses that won’t change your quality of life much can really add up.

How saving $1,000 extra a month can change your life

If you’re able to start saving an extra $1,000 a month, you could start making big changes in your life. For starters, you’re likely to have more peace of mind. Having more savings means you’re more likely to be able to pay for unexpected emergencies without incurring more debt.

You’ll also go a long way toward building your retirement nest egg by taking advantage of compound interest. If you start by contributing $1,000 a month to a retirement account at age 30 or younger, your savings could be worth more than $1 million by the time you retire.

If you save $1,000 at the end of every month and put it in a high-interest savings account that pays 5% interest (compounded daily), you’ll have nearly $70,000 in savings in five years. Do this for 10 years and you’ll have over $157,000.

Finding an extra $1,000 a month might also mean you can worry less about your prescriptions or medical expenses, treat yourself to a vacation every few years or cut out that second job that’s taking you away from spending time with your family. Perhaps those small expenses aren’t as important to your happiness after all.

This article 5 easy ways to save an extra $1000 a month for retirement originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.