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Bank of Canada’s Poloz upbeat about economic growth – Ask a Vancouver Mortgage Broker

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Bank of Canada‘s Poloz upbeat about economic growth

BARRIE MCKENNA AND BRENT JANG-  OTTAWA/VANCOUVER — The Globe and Mail

Bank of Canada Governor Stephen Poloz speaks Wednesday, Sept. 18, 2013, in Vancouver. Mr. Poloz told the Vancouver Board of Trade he is not concerned about a potential housing bubble.
(JIMMY JEONG/THE CANADIAN PRESS)

Bank of Canada Governor Stephen Poloz is painting a brighter picture for the Canadian economy while tossing aside concerns over a housing bubble.

Canada is on its “way home” to more natural economic growth as central banks prepare to reverse nearly six years of low-interest rate fuel, he said Wednesday.

“We are now close to the tipping point from improving confidence into expanding capacity,” Mr. Poloz told more than 600 members of the Vancouver Board of Trade in his second public speech since taking over from Mark Carney in June.

Mr. Poloz said the key pieces of a more normal and self-sustaining economy are falling into place.

Most economists don’t expect the Bank of Canada to start raising its key overnight rate – which has held at 1 per cent since September, 2010 – until late 2014 or even 2015.

Mr. Poloz said the central bank will eventually raise its key interest rate as inflation moves back up to the bank’s annual 2-per-cent target. “We can expect that short-term interest rates, as is normal, will be above inflation,” he said.

His only hint on the timing of eventual higher rates came when he said the economy can support much stronger activity “without stoking inflation,” given the slack in the labour market. That suggests the central bank could be on hold for some time.

At a news conference, he said major real estate markets across Canada appear healthy 14 months after Ottawa tightened mortgage borrowing rules in July of 2012. “Our reading of that is that markets have responded to the various changes in the rules around mortgage underwriting in a way which has in effect engineered a soft landing – a much more comfortable kind of situation,” Mr. Poloz said.

Even though mortgage rates have crept up recently, interest rates remain at historically low levels. “If you’re in a position to buy a home, of course chances are that you will. So, what I have been suggesting, though, is that people take care to do the arithmetic,” he said.

Consumers have been mindful of their exposure to potentially higher mortgage payments when it comes time to renew in three to five years, Mr. Poloz said. “I don’t know what those numbers will be, but you want to make sure that you test it a little bit and you know that you’ll be able to be afford the payments at those higher levels,” he added.

Mr. Poloz said Canadians have been taking on more debt amid the climate of low interest rates since the 2008-09 recession, but he forecasts that consumers’ income will grow at a faster rate than their debt over the long term. “I don’t perceive that there is a bubble in Canada’s housing market,” he said.

During his speech, he said he is optimistic that gathering foreign demand – particularly from the United States – will soon boost business confidence and prompt companies to expand and invest.

He pointed out, for example, that an unusual post-recession dearth of new company formations appears to be ending. After four years of stagnation, 40,000 new companies with at least one employee were created in the past 12 months in Canada, helping to replace the ones destroyed in the recession, he said.

Mr. Poloz also talked about the “tapering” process in which the U.S. Federal Reserve will, at some point, ease the pace at which additional stimulus is provided to the American economy. It decided against such a move Wednesday.

He likened the financial crisis to “a pot of simmering spaghetti sauce,” where injections of easy money in the economy have created a bubble, but also a large crater. “Central banks have been filling that crater with liquidity,” he said. “Central banks can gradually reduce the rate at which they add liquidity. That’s not policy tightening. Rather, it’s another welcome sign that things are getting back to natural growth. And it indicates that the underlying momentum of the U.S. economy is expected to hold.”

Preparing for Moving Day – Consult with a Vancouver Mortgage Broker

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Preparing for Moving Day

Whether you just sold your home or are preparing to move into a new abode that you have just recently bought, you want to make your move as seamlessly as possible. There is nothing more frustrating when you need to get your hands on something important and you don’t know which box you put it into.

Getting organized and prepared beforehand can save you a lot of hassle if you simply follow these few simple tips to make moving day run like clockwork and avoid needless aggravation. The last thing you need to do is have a scavenger hunt to find the electric can opener so you can make supper.

Make up a Bunch of Blank Lists

It’s easy to make up a bunch of blank list beforehand before and all you need is your trusty laptop and printer to set them up beforehand. How you set up your labelling is entirely up to you but you can pinpoint what’s going into each box and by room. All you need to do is set up two or more rows and a page full of columns.

Don’t have a computer? No problem, just go out and buy a cheap notebook with a spiral binding where you can easily tear out the pages.

When you get your moving boxes or cartons you will want to tape your list to each box. Of course, you don’t necessarily have to go overboard and get too detailed. If you’re loading up your CD’s in one box then all you have to is use a generic title. The same goes with your general reading material.

However, if you have important home office discs then you want to maybe keep them separate so you can easily access them.

If you want to be able to set-up your new abode efficiently then by listing each item onto the list then you know exactly what’s in each box and where to find to find miscellaneous items to help you get set-up more quickly.

You especially will want to know where you are have packed vital tools such as screwdrivers, baby supplies, pet food, flashlights, bedding because most people don’t manage to simply unpack everything the same day they move.

 More Packing Material is Better

No matter how much packing material that you estimate you need, always buy or ask the moving company for more because it’s better to be slightly over supplied then have to run around at the last minute to get additional supplies.

You will also need proper material such as bubble wrap for some of your valuables and breakable. Although many people still like to use newspapers and flyers, the ink can stain and isn’t as protective. And, don’t forget to buy lots of packing tape to secure those boxes, especially the heavier ones.

If your moving company is supplying the material then you can always get a rebate on any cartons or boxes or other materials you don’t use.

For your clothes, you can also buy or request that the moving company supply you with wardroom boxes. These wardroom boxes are ideal for all your clothes which you can leave hanging and don’t have to worry about them becoming wrinkled. These boxes are going to be heavy enough so don’t cheat and try to cram other things in there because you’ll make them too heavy.

Keep Important Papers and Valuables Separate

You especially want to keep your important valuables and vital personal and financial papers separate especially if you are using a moving company. They should come with you in your own personal vehicle if at all possible because boxes sometimes do go awry when you use a mover. You want to keep tabs of anything valuable and ensure that you have proper insurance on these valuable items.

You may require a separate insurance rider or it might be covered in the homeowner’s policy. Either way – read the policy or contact your insurance broker before the move takes place.

How you helped Canada’s big banks weather the financial crisis- Ask Bruce Coleman, Vancouver Mortgage Broker

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ROB CARRICK– The Globe and Mail

When financial institutions needed revenue and profit, they simply had their clients supply it.
(Fuse/thinkstock)

The little-discussed safety net that helped the big banks through the financial crisis was their complete, masters-of-the-world dominance over the day-to-day financial affairs of almost all Canadians.

When the banks need revenue and profits, they simply have their clients supply it. And so they did in 2007, as the crisis began to take shape, and for years afterward.

Let us recount the ways, starting with the repricing of variable-rate mortgages. Before the crisis, these mortgages were available at your lender’s prime rate minus a discount as large as 0.9 of a percentage point. At the height of the crisis, variable-rate mortgages were being sold with a markup over prime of one to 1.5 of a percentage point. Since then, the discount has gradually returned and is now at roughly 0.4 off prime.

A case can be made that fixed-rate mortgages would also be lower if precrisis pricing was used. Data from Canada Mortgage and Housing Corp. shows that in the 7.5 years prior to the crisis, posted five-year fixed-rate mortgages were priced at 2.44 percentage points on average above the yield on the five-year Government of Canada bond. Today, the gap is around 3.2 points, down a bit from peak levels but still higher than it was.

Discounted mortgages are also more expensive than they might have been, precrisis. They used to be sold at roughly one percentage point above the five-year Canada bond; today, the gap is more like 1.6 points for a well-discounted mortgage.

The home-equity line of credit is one more example of higher costs as a result of the crisis. HELOCs, as they’re called in the banking world, used to be available at prime. Today, the rate for these widely used borrowing tools is prime plus 0.5 to prime plus one. Rates on unsecured credit lines – where you don’t pledge your house as security – have also risen.

Banks made the argument that the crisis forced them to pay higher rates to raise funds for lending to clients, and that this cost had to be reflected in higher borrowing costs. Haven’t things calmed down by now?

To some extent, yes. But mortgage planner David Larock said banks have come under tighter regulations in the past few years that continue to play a role in higher lending costs. Customers have still come out ahead, he argues. “The [interest rate] discount we’ve enjoyed because of the crisis has far outweighed the marginally increased costs that lenders have for the most part passed on to consumers.”

The crisis was a stressful time for the banks, and they took it out on their customers in a variety of ways. One bank had the bright idea, just as a recession was asserting itself, to charge people a $35 inactivity fee if they left their unsecured credit line unused over a 12-month period. The fee was later cancelled after some embarrassing publicity.

Another gift of the crisis was one bank’s decision to bump up its credit card interest rate by five percentage points if a customer missed two consecutive minimum payments.

Even today, the banks continue to get tough with customers about borrowing. Some have started to adjust the interest rates on credit cards and other lending products according to a customer’s credit record. People who pay on time see no change, or a token rate cut. Those struggling with debt get loaded down with higher interest rates.

Not all changes in the banking business have been negative. In an effort to create pools of money they can profitably lend out, the banks have embraced the high-interest savings account. Thanks to competition between banks, interest rates in these accounts are in the low 1-per-cent range. That’s tiny by historical standards, but decent when compared to one-year term deposits and bond yields.

The consulting firm McVay and Associates says that savings deposit rates are 75 per cent higher than they were five years ago, with much of the cash coming out of money market mutual funds. Even after recent fee cuts, money market funds are only producing returns around 0.5 per cent.

Financially, Canada’s banks are in strong shape right now. Profits are rich, shares have been rising in price and dividends are being cranked higher on a regular basis. Take a moment to admire the turnaround. You helped pay for it.

For more personal finance coverage, follow Rob Carrick on Twitter (@rcarrick) and Facebook (robcarrickfinance).

How Your Credit Score Affects Your Vancouver Mortgage – Ask Bruce Coleman, Vancouver Mortgage Broker

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How Your Credit Score Affects Your Vancouver Mortgage  

One of the key factors used by Vancouver mortgage lenders in determining whether you will qualify for a mortgage is your credit score. Your credit score may also impact the terms of your mortgage and your interest rates.

A Vancouver home mortgage is probably without a doubt one of the largest investments the average person will make in their lifetime. A mortgage is also considered a large loan by any lender.

Why is a Credit Score So Important?

A mortgage lender wants to learn as much as possible about your character. They want to know about your credit history because it tells them whether you are a responsible person who pays your debts and how well you pay them.

The lender is assuming a risk for any mortgage they issue so they would naturally want to minimize that risk as much as possible.

Your credit score is a reflection of all the debts that you have assumed and tells the lender about how responsibly you pay back your debts. A low credit score suggests you are irresponsible when it come to paying your debts which makes them very averse to taking you on as a potential client for a mortgage loan.

How your Credit Score Is Determined

The credit rating agencies are supplied information by lenders such as banks, credit unions, credit card agencies, department stores and others which detail the credit you have assumed and how well you re-pay it.

A credit report will consist of two parts. The first part of a credit report will outline the following information:

• Your payment history
• The overall amount of credit you currently owe
• How often you use credit or credit usage
• Your credit experience
• Whether you have acquired any new credit
• Types of the credit which you have established

The second part provides what is known as an “R” rating where you are given an overall rating ranging from R1 to R9. An R1 rating is the best possible rating and means that you have been paying all your required payments within 30 days. Naturally, an R9 rating is the worst possible rating that can be attached to your credit report.

The two main credit reporting in agencies are Equifax Canada and TransUnion Canada. Both of these credit reporting agencies will charge a fee for your credit report of roughly around $25.00

What Constitutes a Good Credit Score for a Mortgage?

The minimal credit score required by a mortgage lender varies slightly from lender to lender. The average minimal credit scores required by a mortgage lender generally range from between 620 to 680. Most lenders consider any score above the 700 range as being an excellent risk for a mortgage loan.

A low credit score can result in your application being rejected or having more restrictive terms or higher interest rate being charged. You may be required to get a co-signer or have other conditions applied.

In this day and age of identity theft which has become all too common place it’s a good idea to get hold of your credit report before you apply for a mortgage. Credit rating agencies also do make mistakes so if you find your credit score significantly lowered because of either of these issues you need to take prompt and appropriate steps to correct and rectify the problem before you apply for a mortgage.

Becoming Older and Downsizing your Next Home – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Becoming Older and Downsizing your Next Home

The kids have moved out and you’re closing in on your retirement. You find yourself rattling around in a large home and might be asking yourself if you still need such a large home anymore.

Well, maybe you don’t so perhaps you should be thinking of selling the old homestead and getting yourself something smaller.

It’s difficult because you’ve put a lot of effort in maintaining your home and you’ve got a lot of memories built around the family home. So why should you think about moving and getting something smaller?

Reasons Older People Can Consider for Downsizing

There are several good reasons why it might not be practical to consider a smaller living space but there might be some good financial reasons to consider as well.

1. Don’t need the space anymore

If you raised 2 or 3 children and they’ve now gone off and started their own lives, then you simply don’t need all the empty available space anymore. If you have a four plus bedroom home then it’s just extra areas of the home that need cleaning and expensive heating costs.

If you look around then maybe you can find a smaller home or condo that is more suitable to your current needs.

2. Less Maintenance

Let’s face it – any home needs regular maintenance. The gutters need to be cleaned, and there’s the lawn work, the deck, windows etc. that all have to be looked after. If you’re not getting younger or your health has started to decline then you’re going to have to hire someone to continue to do this maintenance. Do you really need the extra expense?

Maybe, it’s time to use the appreciation and equity you’ve built up in your current home and find yourself a nice roomy condominium that doesn’t require all this detailed maintenance anymore.

3. Save Money

If you move to a smaller abode such as either a smaller home or condo you will very likely save some money in a variety of ways. First, a larger home is more expensive to heat in winter and cool in summer. A smaller home or condo can save you a lot of money if you have a bunch of empty space that needs utilities.

Then, there are also the property taxes to consider. You might find a new locale where the property taxes are a lot lower for a smaller sized property and that can also save you money.

4. Downsizing might be a good investment

If you have already paid off your mortgage, and considering the retail value of your home, you might be able to buy a smaller property and still have plenty to spare for other investments which you can use for your retirement.

This could be especially advantageous if you are able to buy your property outright without having to get another mortgage. You will still have 100% equity in your property and can always access a “Reverse Mortgage” if you get into a minor cash bind.

Surprisingly, almost over 40% of the ageing baby boomers indicate they will be looking for a new home that is as big as or even larger than their current home. This trend certainly doesn’t apply to everyone’s situation, so you might want to sit down and seriously consider whether it’s worth your while to stay in your current home or consider downsizing to a smaller abode.

Home Series: Getting ready to sell? 10 staging tips to wow home shoppers – Ask Bruce Coleman, Vancouver Mortgage Broker

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LUCIE BRAND – Special to The Globe and Mail

The following article is from Canadian Real Estate Wealth Magazine.

Renovated clean kitchen, ready for house sale.
(Photos.com)

Preparing any property for sale can be a daunting and often overwhelming task, even for a seasoned investor. Whether you are living in your current investment property or if it has been tenanted for years there are some key staging strategies that can help get your property open house read.

1. Start with a change of mind
Too often investors/home owners become either too emotionally attached or not attached at all. I have worked with investors who were renovating a property and blew their budget on some obscenely expensive tile they “had to have” and had nothing left for furnishing the place. On the other hand I’ve worked with landlords who did not see the value in painting a place that had gone through 3 tenants! Looking at a property from a buyer’s perspective is key.

Take a tour with a realtor or a staging professional and get some outside opinions on what areas you should focus your dollars on and what’s needed to get the maximum offers.

2. Maximize curb appeal
The outside should draw people inside. Neatly trimmed bushes, mulched beds, weeded lawns all help make that crucial “first impression”. Freshly painted front doors with new mailboxes and house numbers are easy ways to create maximum impact without breaking the bank. Adding seasonal urns by the front door for some colour are another way to brighten up concrete steps or boring brick.

3. Choose neutral colour palette
Bold colours are great for living, but not for selling. Light and Bright should be your motto! Stick with a warm, neutral palette like tans, taupes and greys. Avoid dark colours, especially in small spaces (like powder rooms). Keep the ceilings white to keep walls looking tall. Rule of thumb, if the walls haven’t been painted in over 2 years, now is the Time!

Return on investment: 109 per cent*

4. Let there be light
Lighting plays a vital role and is often overlooked when getting a property ready for sale. Dark hallways, rooms with little natural light, basements and bathrooms should be addressed. A minimum of a 2-bulb overhead fixture with maximum watt bulbs can transform a dingy area. There should be NO overhead receptacles without a light fixture! Consider adding pendant fixtures in dining rooms and eating areas. Big box stores offer affordable options in brushed nickel or silver fittings.

Adding ambient lighting is essential especially in areas where there is no overhead outlets. Adding table lamps and floor lamps will help brighten up any room and help your property appear as “light-filled” as possible.

Return on investment: 303 per cent*

5. Flooring
This is the other main area that always increases the value of a home. It will ALWAYS cost you less to replace worn carpet or add new flooring then to leave it to the new home owners.

Most purchasers are looking for reasons to discount their offers. Flooring is one of the first things buyers see when they walk in. If their first thought is “I will need to replace these floors”, I guarantee they are discounting their offers $5000-$10000 for condos and $7000 – $15000 for houses. Doing the work yourself will cost you a fraction of that amount.

Return on investment: 107 per cent*

6. It’s all in the details
Replace all burnt out bulbs, touch up any nicks and dents in high traffic areas, replace torn screens and fix leaking faucets. Once the fix ups are done it’s time to focus on the pretty stuff. Fresh linens in the bathrooms, a bowl of fresh green apples on a kitchen island, fresh flowers on a dining table or in the entrance way.

Adding live or silk greenery to bathrooms and adding a new crisp bedding set to the Master all help create the impression of a well-cared for home.

7. Clean, clean, clean
This may seem like common sense, but unfortunately it’s still the one area owners tend to try and shortcut. This is the time to hire a professional cleaning company. Special attention should be placed on appliances, inside and outside of cupboards, baseboards and windows. Bathrooms should be scoured and if necessary use grout cleaner to get the tiles looking spotless!

8. Highlight best use of the space
Tenants may have liked to use the dining room as an office, but it should be shown with it’s intended purpose. Giving a room more than one function (i.e. guest room and office) is a great way to effectively show the space. In condos this becomes essential when space is at a premium.

Using small glass desks with a stool you can tuck in can creatively introduce a “work space” where one wouldn’t think possible. Adding a daybed to a den/office creates extra sleeping space. Determine what adds the most value to potential buyers in your neighbourhood and showcase the space accordingly.

9. Kitchens and bathrooms are the place to invest
If you have dated cabinetry, cracked and worn laminate counters, chipped or broken tiles, consider investing in repairing and upgrading these rooms.

If your budget is limited, changing cabinetry hardware to brushed nickel or silver knobs and handles will give it an immediate appeal. Consider painting cabinetry instead of replacing them.

Depending on the price point of your property it is often worthwhile to install stone counters. This immediately adds value and is very durable for long term use. If stone is not in the budget, consider a “stone– like” laminate counter. Recaulking around sinks and bathtubs is a simple improvement that can greatly improve the look of a bathroom.

Return on investment: 172 per cent*

10. Vacant properties sit, staged properties sell
Staged homes sell 2 – 3 times faster and up to 6 per cent more than unstaged ones**. People perceive staged units that are well decorated as worth more. Professional stagers know how to highlight the features of the unit and distract from any “not so desirable” features.

If your budget is limited consider focusing on the main living areas and at least one bedroom. If you can’t borrow furniture and artwork, rental companies carry everything from furniture to linens. Just keep in mind that the goal is to show people how to use the space effectively.

Return on investment: 299 per cent*

Remember that 79 per cent of buyers have already viewed your property on the MLS, make sure that your property stands out among the competition! Staging is your key to getting noticed and getting SOLD.

*Homegain Survey 2011

** Joy Valentine Coldwell Banker Survey of 2772 homes

From Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

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Luxury home sales expected to climb: study – Ask Bruce Coleman. Vancouver Mortgage Broker

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Sales of luxury homes will likely gain momentum in the fall, fuelled by demand from international investors, according a new report from real estate sales and marketing company Sotheby’s International Realty Canada.

When a Second Mortgage Makes Sense – Consult with Bruce Coleman, Vancouver Mortgage Broker

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When a Second Mortgage Makes Sense

If you’re not in the ultra-rich capacity, chances are you’re like most people who are living on a tight budget. There are occasions when you will need a big chunk of cash on hand for a variety of reasons. If you own a home and need that cash right now then it could be right at your fingertips.

Many people who need extra money on hand may consider going the rout of maxing out their credit cards or taking out a personal loan. Depending on the reason why you need some extra serious money you could consider taking out a second mortgage instead.

Why not use the equity you’ve built up in your home and take advantage of the low second mortgage rates that are still available? Consider the interest rates that you would pay on your credit cards or what a lender might charge for a personal loan.

If you check out the going rates for a second mortgage versus the amount of interest you’d be paying for your credit cards or a personal loan, you might be in for a bit of a shock.

Now, since you are using your home as collateral for a second mortgage you might want to consider your reasons for getting a second mortgage carefully. Budgeting and planning need to be both practical and realistic so you don’t end up in a financial bind down the road. Make sure you will be comfortable with the additional debt involved before you apply.

Most Common Reason to Get a Second Mortgage

The most common reasons people consider getting a second mortgage include the following;

Home Renovation, Repairs and Improvements

Home renovation projects are one of the most common reasons to get a second mortgage or a HELOC (Home Equity Line of credit). This is especially true if you are living in or buying an older Vancouver home. Using a second mortgage to renovate, repair or add improvements to an older home can often have a terrific R.O.I. (Return On Investment).

The best renovation projects that can have the best R.O.I., especially if you’re thinking of putting your home on the market, includes kitchen and bathroom renovations, or replacing an aging roof.  Other repairs such as those needed for the foundation or to replace old electrical or plumbing can be quite expensive.

Buying a Second Home or Cottage

Real estate in Vancouver and throughout the province is both vibrant and largely a sound investment. You might be thinking that now might be the right time to buy a second property which you could use to pay for itself as a rental property while reaping the awards of property appreciation down the road. However, coming up with the money for the down payment might be a bit problematic. A second mortgage might be just the perfect solution.

Or, you might be thinking of buying a weekend retreat or cottage. Maybe you’re dreaming of some place out on a lake or nestled away in a quiet valley where you can escape your busy and hectic lifestyle for a few days or weeks each year.

College Tuition

Your children might be at that age where they’re ready to graduate from high school and go to college or university. Let’s face it – college and university tuition is getting pretty pricey. University tuition alone can average around $10,000 per year and that might not even include accommodations and living expenses. Paying off such a hefty student loan can be a horrendous burden for a young person who has just graduated.

Many folks want to give their kids a helping hand and a second mortgage might be the best way to give your children that extra boost in starting out their professional lives with a clean financial slate.

Whatever your reasons for getting a second mortgage, just make sure that you’re in good financial shape before you take the plunge.

Are you meeting these money management milestones? – Consult with Bruce Coleman, Vancouver Mortgage Broker

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LINDA STERN – WASHINGTON — Reuters

Life spans are long, and not everyone lives on a “house and kids by 30, first million by 50” kind of schedule. Nevertheless, there are financial milestones that it helps to hit at every stage.

Here is my list, by decade. If you are late on a few, that’s no big deal. If you’re early, that’s great.

0-10: Learn to add and subtract. Sell something (lemonade, car-washing services) for money. Hope your parents are savvy enough to pay you an allowance – it’s an important first money-management step. Save up some of it for something you really want. Use some to buy a gift for somebody else.

10-20: Work at a job for money. Put some of your paycheck in a checking account. Start a savings account. Buy your own clothes. Learn about average salaries for different careers, and about how much different things cost. Make important decisions about which college to attend and what to study – not strictly on the basis of cost, but with realistic finances in mind. Get a credit card with a low borrowing limit and use it regularly, but pay it off monthly.

20-30: Learn to invest. Learn to budget. Continue to feed your savings, and start a retirement fund. Organize a repayment plan for your student loans. Prioritize among all the things you want or may need at this age – from couches to cribs to career suits. Keep your credit report clean by not defaulting on debt or paying bills late. Learn to make credit cards work for you by choosing a good cash-rebate card, using it for everything and paying it off monthly. Set up a rainy day savings fund so that you build it automatically via payroll deductions. As soon as you have children, buy life insurance. Do your own taxes at least once. Learn to track all of your money in a program like Quicken or Mint or on your own spreadsheet if you’re so inclined.

30-40: Continue plowing as much as possible into retirement vehicles. Buy a house. If you have children, set up a college-savings plan for them. If you haven’t already, switch your various insurance policies to high-deductible plans – you’ll save money every month on premiums and should have accumulated enough savings by now to cover the deductibles. Build your investing expertise by learning about exchange-traded funds, individual stocks and bonds. Diversify your investments to make sure you have some money in some of these categories: real estate, commodities, foreign stocks. Boost your skills – either by pursuing an advanced degree, or taking courses, or spending money on the tools that will make you more employable. Follow the performance of your investments in a portfolio-tracking program.

40-50: Create an investment account that is separate from your rainy day savings, your retirement fund and your kids’ college-savings vehicles. Put it on autopilot so money is deposited routinely from your checking account. Max out your retirement savings to the extent possible. Use some money for something you’ve always wanted to do – take the big family trip or get the swimming pool installed. Talk to some financial advisers – you may find one that you want to work with, or you may decide you can manage your investments by yourself. Talk to your own aging parents to make sure you understand their finances, what you would have to do if they needed care, and what you will have to do when they die.

50-60: Do the pre-retirement math so you have a rough idea of how much money you’ll have when you retire and how much you have to save between now and then. Pay off all your debts, except for a low-interest fixed-rate mortgage. Consider buying a vacation or retirement home. Educate yourself about programs like Old Age Security and any pension benefits you might have coming to you. Invest some money in your future self – building a hobby shop or taking classes to prepare for your next act.

60-70: Develop a part-time consulting gig or side business. Learn to cash in on senior discounts. Earmark a portion of your savings ($250,000 or more if you can afford it) to save in case you need long-term care. (Investigate long-term care insurance but be cautious; many companies are dropping out of the business or drastically raising their rates.) Rejig your investments so they will provide the income you need. Decide if you want to monitor them yourself, or hire a professional money manager. Get more strategic about your charitable giving – make fewer, larger gifts, and consider setting up a donor-advised fund – a type of private charitable fund that acts like a foundation and that other family members could also contribute to. Splurge on the retirement trip or big toy. Prepare yourself psychologically for the withdraw-and-spend phase of life, after a lifetime of working and saving. Start serious estate planning.

70-80: If your finances are tight, cut back on spending. If you’ve got plenty of money, begin acting on your estate plan by being more generous with relatives and charities. Talk to your kids about your finances, and make sure you’ve got clean records they can access about where everything is and what you want done with it.

80-90: Downsize or get rid of stuff – hand off family heirlooms one at a time in a way that is meaningful – and donate household items you don’t use anymore to charity, or to help your grandchildren set up their first places. Use more of your money to live comfortably; don’t stint on the hearing aids, household help or handrails that keep you active and safe.

90-100 and beyond: Hire help, even if you don’t need it – it’s nice to have some chores taken care of and your kids will worry about you less. Spend your money on whatever makes you happy.