With tariffs and counter-tariffs in effect globally, the trade war has entered a dangerous new phase for the economic health of Canadians.
As I noted in a recent column, investments have held up reasonably well so far. But the actual implementation of tariffs has shaken financial markets, and will affect the broader economy as well. Some big risks looking ahead are higher costs for everyday goods like food, the loss of jobs and income and declining opportunities for advancement in your career.
Where do you see the biggest trade war financial risk in your own life? Help me understand what you’re up against by taking this short, anonymous survey. I’ll report back later on the results.
A recent opinion piece was published in The Globe and Mail with this ominous headline: Canada, be prepared for hardships not seen in generations. A negotiated end to the trade war is possible, but we do seem to have reached a pivotal moment in the building of the Canadian economy. What worries you most about the future?
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Rob’s personal finance reading list
The golden age of fraudThat’s what we’re living in, according to a well-researched and alarming article in Maclean’s. Technology is driving the fraud problem, as is the deviousness of criminals.
The Walmart boycottWalmart is facing a boycott from U.S. customers who are critical of the way the company’s profits have been rising at a time when many households have trouble affording basic living costs. Sound familiar? Loblaw faced a
similar boycott last year. A recent Globe and Mail
report on Loblaw quarterly earnings suggests the chain has shrugged this off.
The loonie – sink or swim?A look at what forecasters see happening to the Canadian dollar this year as a result of events in the economy and the trade war. The outlook cannot be described as bright, but it’s worth noting that our buck has risen off the lows of earlier in the year.
From our readers
Ask Rob
QuestionMy wife and I are both retired teachers. We still have a mortgage of $400,000. We have term life insurance that will expire soon. If one of us dies before the other, the mortgage and other house costs could all be covered by the survivor pension of the other. However, life insurance to pay off the mortgage would mean a more affluent lifestyle. Is there any advice on how to decide whether life insurance is recommended for people over 60 in our situation?
AnswerI consulted veteran financial planner Clay Gillespie of RGF Wealth Management in Vancouver for an answer to this question. Here’s his response: “Life insurance is typically used to replace the income of an individual if they die before retirement to make sure their family is still taken care of. Once you reach retirement, you probably do not need life insurance. This couple would require a policy that pays out on the first death, which can be quite costly later in life. I doubt, when I did the math, it would make sense. They would have to use a significant portion of today’s after-tax income to pay for this policy which may possibly reduce their standard of living when they’re more active and able to spend the money. So, in short, it depends on the cost of insurance and if they have cash flow that is not being used to fund their lifestyle at the present time.”
Note: A joint first-to-die term
life insurance policy would pay a death benefit when the first partner passes away.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A look at the differences between money orders, certified cheques and bank drafts.
More PF from The Globe
Price hikes on U.S.-made cars caused by tariffs likely to spill into
used market Canadians are leading the charge on a
tanking U.S. travel industry
The
hidden risk that LinkedIn and other professional networking sites pose to your retirement