Good afternoon! Patience pays off almost everywhere except your finances, where waiting tends to send you a bill. This week, a little urgency could be worth thousands.
On The Money Today:
Every month you pause retirement savings makes the gap harder to close
Why holding out for a better mortgage rate has become a gamble
DIY investors who wait past Oct. 21 could forfeit their share of CIBC’s $26M payout
Let's dive in.
RETIREMENT
Why cutting retirement contributions now could cost you $20K or more
Most workplace savers believe they’re on track for retirement, yet nearly three in four say they may cut contributions in the next year just to cover daily costs. If you’re weighing the same move, the money you free up today may not be the only thing you give up. A short pause can turn into a lasting gap when you don’t know which part of your savings takes the hit first.
Why it matters:
Only half of Gen X savers feel on track for retirement, and 68% of workers already worry about outliving their savings. The closer you are to retiring, the less time you have to rebuild what a pause costs you.
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MORTGAGE RATES
The mortgage shift borrowers need to make now after the Fed’s rate hike
Canadian fixed mortgage rates have climbed since the U.S. Federal Reserve raised rates in September, and five-year fixed offers below 4% have disappeared. If you’re renewing, refinancing or buying in the months ahead, the approach that served you well in the past could now work against you. One mortgage broker says borrowers need to rethink a common assumption before they sign.
Why it matters:
Fixed rates follow bond yields, and the five-year Government of Canada yield hit a 52-week high in September, so pressure can build even if the Bank of Canada stays put. For anyone renewing on a fixed retirement income, a rate surprise lands directly on monthly cash flow.
MUST READ
Held mutual funds through a discount broker? CIBC’s $26M settlement could owe you
If you’ve ever bought mutual funds through an online brokerage, you may have paid fees for advice you never received. A $26 million class action settlement with CIBC aims to return some of that money, and the window to claim closes Oct. 21. Whether you qualify comes down to a few details most people never think to check.
Why it matters:
For years, trailing commissions came out of fund management fees and chipped away at returns for investors who made their own trades. Because the settlement is split among approved claims, anyone who misses the deadline leaves their share behind.
MONEY IQ
In what year was CIBC created through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada?
ALSO MAKING THE ROUNDS TODAY
Nearly one in five Canadians would delay retirement to afford a home, but for buyers closer to the finish line the real trade-off is working longer and possibly carrying a mortgage into your 70s
Elon Musk’s call for Alberta and Saskatchewan to separate barely moved markets, but the 1995 Quebec campaign shows how fast a referendum can hit the loonie ahead of Alberta’s Oct. 19 vote
With Hockey Night in Canada off CBC, following every national NHL game now means paying both Rogers and Amazon, but the right billing choice could trim your season’s bill by up to $45
A Scarborough retiree lost his $1,000 EV deposit after a change of heart, because Ontario offers no cooling-off period at the dealership once your signature is on the contract
MONEY IQ: HOW'D YOU DO?
Answer: D) The two banks merged in 1961 to form the Canadian Imperial Bank of Commerce, though its roots go back to the 1860s.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
