Last month we talked about a survey that showed 8 out of ten people want financial advice from their bank. Great idea – from the wrong people! Getting financial advice and learning the insights is a great ideal or it’ll cost you huge. But don’t get it from people who are on commission. Here’s more proof of that going on right now:
Interest rates are stable and heading down. The Federal Reserve in the US will start dropping them before Canada, but they will come down in both countries. I first mentioned that we will be going into a recessing last fall already.
What are all financial institutions advertising heavily right now? Getting a fixed longer term mortgage at a “special” rate. OK, rates are coming down – so the WORST thing to do is lock yourself in right now at higher than need be rates! Banks want you locked in for five years or longer. That way, when rates come down, you’re way overpaying and it’s their additional profit.
What you do not hear from any of them right now are any ads on GICs. Why? Because if you lock those in right now you’ll get the higher rates before they drop. That’ll make you money but cost the banks a significant amount of profit: You get the high rate – they have to pay it while prime rates are dropping.
Adulting 101 Course
What a great idea! And it’s something four or five parents or grandparents can do together this summer: An Adulting Boot Camp. A high school in Lexington Kentucky this year started a three-day adulting 101 course for grade 12 students. Day one is all about money, day two is home & health and day three is being a professional. It’s everything from budgeting to saving, how to do laundry, basic cooking, car maintenance, ironing a shirt, shaking hands, making eye contact, tucking in your shirt, leaving your cell off during an interview and a ton more.
I love it love it love it! They may seem like such no-brainers to us older generations, but it isn’t in any way shape or form for 18-year olds!
George Boelcke – Money Tools & Rules book – yourmoneybook.com