You are more in the dark than you think! Part 2

This week we are going to continue to look at a recent article that outlines 15 things that your bank might not tell you.

These things are important for you to understand to be a smart consumer and make good financial choices!

8) Bankers work for their bank, they do not work for you

· Senior management at banks freely admit that their business objective is to increase value for their share holders. Which you should be aware of- as your best interest may not always be the banks’ objective.

9) Your mortgage will cost you

· By the end of paying off your mortgage you will have paid a HUGE amount in interest. When we see the small percentage they are charging- we think it is not big deal. But this adds up. For example, on a $250,000 mortgage over 25 years at a 4% interest rate you will have forked out $395,877.36. This is why it’s SO important to shop around and get the best rate (or get a mortgage agent/broker to do it for you).

10) Selling might also cost you

· Banks are rarely transparent about the penalties that you might incur from selling your home. Many people are unaware of this practice and very shocked when it comes time to sell. In our experience we have found this is one of the main reasons why banks suggest a Fixed Rate because it has the largest penalties if you sell early (but they tell you it’s so you can sleep at night).

11) Bank mortgage insurance may not be your best option

· The banks in house life insurance that they offer with your mortgage may seem convenient. But you might be really limiting your portfolio and also how your insurance covers you. Often going to an insurance broker will allow you to get insurance that better suits you and your family and leaves you well protected.

12) Sometimes bankers cannot be trusted

· There has been an increase in data theft, fraudulent transfers, and fake debit cards according to chief of the Cybercrime and Identity Theft Bureau. Your bank is constantly checking you to make sure you aren’t committing fraud…but are you checking them? Monitor your accounts and report ANY strange transfers or debits (including investment accounts)…especially with seniors.

13) Travelling might cost you

· Travelling with your debit card and taking out money on location might be extremely costly. Even ATM’s that are advertised as free- most often are not. You can get home and receive a costly surprise.

14) Your bank can freeze your assets without telling you

· Often hiding in the small print when you have signed up for an account is a clause allowing the banks to freeze or even close your accounts without even giving you notice! YIKES! This is one of the big reasons options like Bitcoin have exploded in the last few years as people want to know that THEY have control over their money…not the banks.

15) No credit might be bad credit

· Some people are cautious of credit cards and loans of any kind. They are always focused on paying cash and avoiding paying interest. While in theory this is smart, you don’t build a credit score without taking on credit or debt…which can limit your ability to get a mortgage, car, job, apartment…you need to develop sound habits for managing debt and use it to your advantage. Something we did not learn in school!

This is not intended to bash on the banks. This is intended to shed light on the many things that we need to know if we hope to have control of our Financial Future.

Many of us hope for Financial Freedom- but hoping isn’t enough- and taking advice from our banks clearly doesn’t always give us all the tools we need either.

That is where we come in.

One of our recent graduates said…

“I would highly recommend Brian and his program to someone who is not comfortable with Investing. Brian helps you to learn all the ways people can Invest and show you what to look for in the investment. His program goes into different types of investments, which a lot of people don’t have the insight.” — Recent Grad, Toronto ON

We want to help you build understanding and insight to create the Financial Freedom of your dreams.

Message us now for more information on how we can help!