5 Common Mistakes by First-Time Homebuyers and How to Avoid Them

The following is a guest post by Sean Cooper, bestselling author of the book, Burn Your Mortgage. Sean is also a mortgage broker at mortgagepal.ca.

When I bought my home six years ago, I found it both exciting and fun. If you buy a new property, as long as you have the budget, you can often customize it to your heart’s content. If you buy a resale property like me, you can choose to buy in a neighbourhood with everything that you’re looking for (provided it’s in your budget).

While I found house hunting a lot of fun, there were some costly mistakes I could have made along the way. I’m not perfect. I made some mistakes, but luckily nothing too big. (That’s why I wrote a book so other homebuyers wouldn’t repeat some of these bigger pitfalls I came across.)

Without further ado, here are five common mistakes by first-time homebuyers and how to avoid them.

Mistake #1: Not Getting Preapproved for a Mortgage

Before going house hunting, make sure you’re preapproved for a mortgage. Without a mortgage preapproval in hand, you won’t have any clue about how much you can spend on a property. You could spend $600K on a home, only to find out a lender will only approve you to spend $550K, leaving you scrambling to make up the shortfall. Don’t let this happen to you.

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How to invest in the final few years of a bull market

The following is a guest post from Troy Bombardia from BullMarkets.co

The current bull market and economic cycle are extremely stretched. But remember that bull markets don’t die of old age – they die of excess. And although economic and market excess aren’t as high as they were in 2000 or 2007, excess is starting to creep in. You can see this slowly rising excess in rising debt, rising valuations, etc.

But the key point is that although these signs of excess are concerns, they are not significant enough to end the bull market in stocks and economic expansion right now. This means that although the economic expansion and bull market are getting old, they still have a few years left.

Here are the best ways to invest during the final few years of an economic expansion.

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Is whole life insurance worth it?

The following post is written by Brian So from Brian So Insurance

If you have ever spoken to a life insurance broker or researched life insurance online, you may have come across a type of insurance called whole life insurance. What is whole life insurance and how does it compare to term insurance? More importantly, is whole life insurance worth it?

What is whole life insurance?

Whole life insurance is a type of permanent life insurance. Its premium is guaranteed and level for the life of the insured until age 100, when the policy is paid up and no further premium is necessary.

Because the premium never increases over the life of the policy, it starts out much higher than the premium for term insurance. The premium in the earlier years is more than necessary to cover the cost of insurance. The excess is kept inside the policy as a cash reserve. As the insured ages and his mortality rate increases, the premium he pays is no longer sufficient to keep up with the mortality rate. The excess premium paid in the early stages helps supplement the policy in the latter stages.

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5 ways to build a million-dollar retirement fund

The following is a guest post

You are never too young to think about retirement investments. The reasoning behind this lies in the power of compound interest. As an example, this article explains how putting off retirement savings by just 10 years can cost you over half-million dollars until 65.

There are countless ways to build your retirement portfolio, depending on your income, lifestyle, the appetite for risk and resilience in saving money. Our top recommendations include:

  • opening an IRA next to your 401(k),
  • contact a broker and invest in stock market,
  • don’t ignore the cryptocurrency market,
  • automate savings,
  • don’t forget about catch-up contributions if you are over 50.

The importance of the IRA

Even if your employer generously offers a 401(k) which, by all means, you should take and match the contribution, consider also getting an IRA. Choose between the two available flavors. The first option is the traditional, tax-deductible IRA, which also grows tax-deferred until withdrawal. The Roth IRA consists of after-tax money and yields tax-free withdrawals on maturity. There is a third kind, non-deductible IRA for high-earners.

The best option of the three could be the Roth IRA since the money grows tax-free. By the power of the compound interest, by the time you take them out the fund could have multiplied a couple of times.

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Is Tesla Stock a Good Investment?

The following is a 3rd party contribution 

Tesla’s stock price recovered much of its recent losses triggered by the recent global market sell-off, and the company is currently trading around USD 330. This is slightly below the level it reached on January 25th, after which it rose to USD 354, fell as low as USD 310 and then rebounded to USD 357. However, it is currently moving back down and could soon approach the previous support level of USD 309.54.

Whether TSLA continues to fall or stages another rally, traders can take advantage of all price movements by using stock trading platforms. Many brokers, such as UFX.com, offer numerous trading tools and advanced charts, allowing members to make more informed trading decisions. The question for many is now whether Tesla stock represents a sound investment.

The valuation of the company still seems too high for many analysts, since the company is yet to make a profit and is burning a lot of cash, not to mention its production problem regarding the new Model 3. According to Barclays, the electric vehicle producer’s stock should be sold, while Morgan Stanley reiterated its “equal weight” rating at the beginning of February with a price target of USD 379. Even if its stock rises, Tesla has serious challenges to address, ones that are likely to weigh heavily on the company’s valuation.

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