Neighbourhood changes? | Page 15 | GTAMotorcycle.com

Neighbourhood changes?

GreyGhost said:
On the wealthy end, they may not even know what is going on. Some accounting firms were doing mighty shady things. As a person paying a skilled advisor, you trust them. Even if you directly ask the firm, they would say it is aggressive but legal. Whether CRA agrees with that position is worked out once CRA is aware that that interpretation is being used.
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That’s a lot different than fraud. Fraud is wilfully misrepresenting financials for gain. Testing the law is different, Rev Can has no problem with that.
 
Mad Mike said:
The credit card debt dies with your estate. If your insolvent, then it or part of it dies with you.

That said, once you die it’s no longer your worry.
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Isn't CC debt life insured? I know a family that would have been wiped out otherwise.
 
Mad Mike said:
That’s a lot different than fraud. Fraud is wilfully misrepresenting financials for gain. Testing the law is different, Rev Can has no problem with that.
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I don't know if it's still happening but when my wife did our taxes she would call CRA multiple times until she got the most advantageous answer.
 
nobbie48 said:
Isn't CC debt life insured? I know a family that would have been wiped out otherwise.
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If you have life insurance, it goes into the estate and the cc company gets their cut before the beneficiaries. If you have no life insurance and no assets, debt dies with the debtor. The person that owed the money is dead, cc company writes it off.
 
GreyGhost said:
If you have life insurance, it goes into the estate and the cc company gets their cut before the beneficiaries. If you have no life insurance and no assets, debt dies with the debtor. The person that owed the money is dead, cc company writes it off.
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Life insurance went to next of kin. Under a POA the family home was mortgaged to the rafters. No one knew what the deceased paid for her parties until after the funeral. The wills are still being disputed six or seven years later.
 
nobbie48 said:
Life insurance went to next of kin. Under a POA the family home was mortgaged to the rafters. No one knew what the deceased paid for her parties until after the funeral. The wills are still being disputed six or seven years later.
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If I took out a life insurance policy on you, I would get the money, not the estate. If you know the big picture, you can structure appropriately.
 
GreyGhost said:
If I took out a life insurance policy on you, I would get the money, not the estate. If you know the big picture, you can structure appropriately.
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I can only assume the HELOCs were insured and CC was covered as well. If not her brothers would only have memories.
 
If you carry insurance on a mortgage is the HELOC insured as well or is that a separate policy ? We always had mortgage insurance when we needed it , usually a policy outside the bank as we got a better rate . My banker gal ( who has a conscience) tries to make sure clients understand sometimes young people get sick and sometimes they die. Insurance isn’t just another expense, it can mean whoever gets left behind doesn’t live in a fridge box in the alley.


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crankcall said:
If you carry insurance on a mortgage is the HELOC insured as well or is that a separate policy ? We always had mortgage insurance when we needed it , usually a policy outside the bank as we got a better rate . My banker gal ( who has a conscience) tries to make sure clients understand sometimes young people get sick and sometimes they die. Insurance isn’t just another expense, it can mean whoever gets left behind doesn’t live in a fridge box in the alley.


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I know some friends of mine that insured their children and made themselves beneficiaries.

Morbid until you think about it, but the kids’ rates are super low so instead of a 20-30 year policy they get 50-70 year policies and then transfer to their spouses once the time comes.

I’ve not insured my kids, just myself and my wife.

I’ve got enough to pay the mortgage, and leave her another 400k.

She’s insured enough to pay the mortgage, and whatever else is left over stays in the bank.

Obviously she’ll feel it much more financially if I pass then the other way around.
 
crankcall said:
If you carry insurance on a mortgage is the HELOC insured as well or is that a separate policy ? We always had mortgage insurance when we needed it , usually a policy outside the bank as we got a better rate . My banker gal ( who has a conscience) tries to make sure clients understand sometimes young people get sick and sometimes they die. Insurance isn’t just another expense, it can mean whoever gets left behind doesn’t live in a fridge box in the alley.


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Whenever I had a major birthday my HELOC interest rate went up. The insurance was built into the rate. Are CCs similar?
 
I never insured the kids , I insured assets , and Candian kids are a liability, schooling , sports , university, helping with a mortgage , looking after thier kids when they divorce. They are an enormous sucking sound , for most responsible Canadians.
I’m so lucky both of mine had a successful launch with no rebound . The stories I hear about dum arsed children astonishes me .


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crankcall said:
I never insured the kids , I insured assets , and Candian kids are a liability, schooling , sports , university, helping with a mortgage , looking after thier kids when they divorce. They are an enormous sucking sound , for most responsible Canadians.
I’m so lucky both of mine had a successful launch with no rebound . The stories I hear about dum arsed children astonishes me .


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Peter Zeihan said on farms kids were assets. In the city the're just expensive pets.
 
nobbie48 said:
Peter Zeihan said on farms kids were assets. In the city the're just expensive pets.
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My BIL has 4 farm kids. None can start a tractor.
 
mimico_polak said:
I know some friends of mine that insured their children and made themselves beneficiaries.

Morbid until you think about it, but the kids’ rates are super low so instead of a 20-30 year policy they get 50-70 year policies and then transfer to their spouses once the time comes.

I’ve not insured my kids, just myself and my wife.

I’ve got enough to pay the mortgage, and leave her another 400k.

She’s insured enough to pay the mortgage, and whatever else is left over stays in the bank.

Obviously she’ll feel it much more financially if I pass then the other way around.
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All the books I've read on money/investing say you only insure the the money makers.
 
timtune said:
All the books I've read on money/investing say you only insure the the money makers.
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It sounds like MP's friends are playing the really long game. Basically setup life insurance the kids will carry forever. You get cheap rates as they are collecting decades of premiums. The insurance is to support the kids future family and not the parents that initiated the policy.
 
GreyGhost said:
It sounds like MP's friends are playing the really long game. Basically setup life insurance the kids will carry forever. You get cheap rates as they are collecting decades of premiums. The insurance is to support the kids future family and not the parents that initiated the policy.
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But again from what I've read that's the wrong way to do it. Insurance is simply not a good way to grow cash. They're better off investing that cash, letting it grow and then pass that on to the kids. Insurance is for insuring things it's not an investment tool. At least not a good one.
 
timtune said:
But again from what I've read that's the wrong way to do it. Insurance is simply not a good way to grow cash. They're better off investing that cash, letting it grow and then pass that on to the kids. Insurance is for insuring things it's not an investment tool. At least not a good one.
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That's reasonable too. Dump the premiums into investments and by the time they might need the money, the warchest exists. Insurance makes the most sense when you don't have the time between premiums and potential need for warchest.

Out of interest, I tried to get some online life insurance quotes for kids to see what the premiums looked like. No luck. The ones I checked, you had to be at least 16 or 18. For term life, I can only see 10 or 20 year policies. For 1M is $725/yr for 20 year term. If you invested the money instead, you would be at ~$30K in the warchest. Not really effective life insurance. 20 years after you stop contributing, you would have about $120k. Again, not really sufficient life insurance. 60-80 years after you would have initiated the policy, there is a decent amount of money available (>$500K). So if you decide to self-insure your kids, you are really setting things up for the grand kids as you need to invest a lot more money if you want it as life insurance for your kids.
 
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