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Archive for December, 2009

The Decade of Reading

Sunday, December 27th, 2009

Do you believe that the Canadian book publishing industry is going to die away? With ebook readers, will we still be able to have a vibrant industry or will it be diluted by the many other special and wonderful authours from around the world? And does it matter to you?
During this past decade so many things have occurred to make us think or thrill us with a fascinating tale or tell us about ourselves and the way we live. Canada has produced many of these people who create their own slices of life. We are most fortunate.
Whether you liked the writing or not The Da Vinci Code intrigued 80 million people enough to buy the book and then to watch the movie of the same name. This brought about other books which looked at the Holy Grail, the Knights Templar and Mary Magdelene conspiracy theories. There’s even another book from Dan Brown called the Lost Symbol which follows the main character from his other hit seller. The Da Vinci  Code was the most popular book of the decade.
This lead to a series of books about God. The End of Faith, God is Not Great, How Religion Poisons Everything, the Case of God, the God Delusion and Giller Prize winner God Is from David Adams Richards debated the existence of and the reasons for God. Along with this a curious thing happened, sales of the Bible skyrocketed.
Another example of this decade’s writing was a whole series of books about making connections from people like Canadian Malcolm Gladwell and Steven D. Leavitt and Stephen J Dubner. They looked at ideas and worked out meaningful things that others had not put together. From Sesame Street to Hush Puppies, the Beatles to what a dog sees and comparing economics to a Chicago street gang and abortion rates, they proved that there is a very, very small degree of separation in our world and that practice does indeed make perfect.
Autobiographies were again high on reading lists but after James Frey’s book A Million Little Pieces was revealed as highly exaggerated lies the whole world looked a lot more suspiciously at this genre of book and insisted that authours tell the truth about mixing fact and fiction.
Chick Lit, as always made itself felt through the Shopaholic series, the Nanny Diaries, the Devil Wears Prada. If you believed these, most every important woman is neurotic, always looking for a martini and a good pair of shoes. Along with the Harlequin romances and some time-travelling tales like The Outlander series they proved that love and romance still sell.
Another trend was the Indo-Canadian group of authours from White Teeth about multi-layered, multi-ethnic life in north London through the Kite Runner, White Tiger, De Niro’s Game and Cockroach which proved that literary greatness was no longer turf reserved solely for middle-aged white men. These enriched our culture and helped us to see the world from a different slant.
The other main trend has been the Green Revolution which tries to make us look at climate change and the effect we are – or aren’t – having on the world. It all started with Al Gore and his book and film An Inconvenient Truth. Whether you believe that we can somehow ruin this earth, or maybe just ruin ourselves, there are many, many books which give opinions on both sides of the issue in fact and fiction.
I hope that we continue to see as many gifted and captivating new authours emerge in the next decade as there have been in the last one. Ideas and new viewpoints whether fact or fiction are an important stimulus for each of us to learn about the possibilities which await.

A Mountain of Debt

Sunday, December 27th, 2009

I heard a respected money manager on the radio today who was talking about the financial picture in the last year. He said that the year started with huge worries because we had just experienced the worst depression since the 1930′s. This very same year ended with the markets having regained almost everything back. I have checked out my clients and do see that they are almost back to 2008 levels. Going back to 2008 I also noted that the Canadian stock markets reached their highest levels ever. So coming down from the highest level ever is not something to panic over too severely.

Are you ahead of where you were when you started? Probably, unless you just started to invest last year. If you have savings  for emergencies as well as being in the process of putting money away for retirement years when you can no longer work, you’re still doing all right. It’s when you stop saving in favour of spending that the problem arises.

In the article below the writer talks about rising use of debt without talking about good debt versus bad debt.What’s the difference? Give me a call and let’s share a few minutes and find out. Understanding your cash flow is the first step towards controlling your money. Understanding the different types of debt is the second step.

A MOUNTAIN OF DEBT
JANET MCFARLAND
00:00 EDT Tuesday, May 26, 2009
Canadian household debt has hit new highs, fanning concerns that Canadians are living well beyond their means. A new survey by the Certified General Accountants of Canada (CGA) says current household debt is at a “highly disturbing” level, especially considering the prospects are slim that financial security will improve in the recession. The CGA says consumers need to find “a greater balance” between spending and saving.
HOUSEHOLD DEBT RISES
Canadian household debt is at an all-time high, reaching $1.3-trillion at the end of 2008, up dramatically from $1-trillion in 2007. That means household debt levels have climbed to $39,597 per Canadian from $23,885 in 2000 – an increase of 66 per cent in nine years.
DEBT USE CHANGES
A growing portion of household debt comes from credit cards and personal lines of credit, reflecting a rising use of credit for discretionary spending and non-durable goods. This means debt is increasingly used for consumption rather than for assets such as homes and vehicles. A CGA survey of 2,013 Canadians in November found that 58 per cent said their day-to-day living expenses are the main cause of their increasing debt, and that 21 per cent of people in debt said they can no longer manage the load.
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REASONS FOR INCREASING DEBT
Day-to-day living expenses    58%
Interest charges    27%
Purchase of a new car    26%
Purchase of consumer durables    25%
Purchases of a new residence    19%
Expenses for leisure and entertainment    19%
Health related expenses    16%
Enrolling in an educational program    10%
Other    24%

CHILDREN BOOST DEBT
The CGA survey found that people with incomes under $35,000, as well as families with children, are seeing their debt levels rise the most acutely. Eighty-eight per cent of respondents with no debt lived in one- or two-person households and were significantly less likely to have children under age 18.
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CHANGES IN HOUSEHOLD DEBT BY INCOME GROUP
Under $35,000    $35,000- $75,000    $75,000 or more
Decreased a lot or a little    27%    34%    41%
Remained about the same    24%    24%    21%
Increased a lot or a little    49%    42%    38%

DEBT-TO-INCOME GROWS
The CGA said household debt equalled 136.5 per cent of annual household income at the end of 2008, up from 125 per cent a year earlier and 97.1 per cent in 2000. And while some took comfort in years past that asset values, especially real estate and investments, had grown at the same time debt had risen, that was not the case in 2008. The ratio of household debt to household assets climbed to 19 per cent by the end of 2008, after hovering between 14 and 15 per cent for much of the previous decade.
DEBT BEGETS DEBT
Survey respondents said their debt-servicing costs are becoming a growing portion of their household expenditures, with nearly one-third of those surveyed saying their non-mortgage debt payments have increased in the past three years.
CONSUMERS STAY CONFIDENT
The CGA said consumers are confident about their debt management even though 65 per cent feel their debt levels limit their abilities to reach their financial goals; one-third report that they do not commit any money to savings; and one-quarter say they could not handle an unforeseen expenditure of $5,000. Nonetheless, 79 per cent of survey respondents who are indebted say they are still confident they can manage their debt load well, or take on more debt.

Williams Coffee Pub

Sunday, December 20th, 2009

We’ve all heard the stories of Tim Horton’s and Second Cup, both are Canadian Legends. But have you heard about the story behind the William’s chain and did you know that it is a very local success?

Williams Coffee Pub is an upper-class fast food restaurant chain in Ontario, Canada according to Wikipedia. It was founded in Stratford, Ontario in 1993 by Bill and George Giannakopoulos. There are currently over 40 locations where patrons can enjoy quick service and free internet connection. This makes the Pubs an ideal spo

Sylvia

Sunday, December 20th, 2009

by Bryce Courtney

Another of those very interesting writers who deals with historical facts and weaves them in a story with characters we can relate to and empathize with. Bryce Courtney currently lives in Hunter Valley, Wales in the United Kingdom these days. He was born and raised in South Africa and was for many years a naturalized Australian citizen. He has written many books about both of those continents in a style which makes you want to follow the people in the books which come in series right to the end of their stories. He was one of Australia’s most famous writers for many years.

This time Mr Courtney has changed his focus and writes about a very interesting time in history in the year 1212. The narrator of the story is Sylvia Honeyeater, a teenaged girl, who lives in what is Germany today. At age eight her mother dies whereupon her father starts to abuse her sexually. When he does he gives her a honeycomb to “sweeten her disposition for the next time”. The name was later thought by those who met her to refer to her sweet singing voice.

At age 11 her father dies and she is an orphan alone. Sylvia decides to go to Cologne so that she will survive and make her fortune. The story of her journey and the people she meets along the way are the meat of the book.

This book explores themes of childhood and abuse in a very rigid and dark time. It discusses religion and womanhood as they were viewed in the middle ages. The story contrasts people like Frau Anna, the Christian lady who has all the answers for what should be done but is selfish and vengeful and only looking out for herself and Frau Sarah, the Jew who is accused of being a money-lender and Christ killer, who takes in Sylvia and Reinhart her rat-catcher, musician friend and teaches them how to earn a living making music.

A homeless boy named Nicholas that Sylvia has befriended starts preaching to children that God spoke to him and showed him a Children’s Crusade to Jerusalem. This comes to a climax when a mass of peasant women walk naked, seemingly in a trance, to the church on the Sabbath day chanting “our children in Jerusalem”.

Sylvia is presented with two choices as she becomes a woman either become a wife and mother or become a nun. Those are the primary careers available. But Sylvia has a strong desire to learn everything possible to learn and to reach far beyond what is expected of her. She joins and helps to organize the Crusade.

Although a study done in 1977 cast doubt that the Children’s Crusade was anything more than roving bands of displaced people who were professing a desire to go and peacefully convert the Muslims in Jerusalem but where in actual fact homeless and heading to Italy and Rome to be saved.

Whether it happened or not this book is a great tale told from a different angle which sheds light on a time and in places which have been long assigned to the dustbins of history. An easy to read narration of life during turbulent, long-ago times.

Dr Phillip McGraw

Sunday, December 13th, 2009

Love him or hate him, one of the biggest TV phenomenons of the last decade has been Oprah’s find, Dr. Phil. Although his show is not viewed by so many people these days, it is still in production and his website is still active and current.

Always controversial and having a seeming attraction for lawsuits, he nevertheless dominated the TV air waves from 2002 to 2008. Where did he come from and just how did he do it?

We’re all familiar with his humble beginnings history, but are you aware that his alcoholic father did pull up his socks and become a practising psychologist. His father returning to school was one of the big reasons for the poverty when Dr. Phil was a child.

Despite all of that, McGraw junior, went to school and earned a Ph.D in psychology. His dissertation was entitled Rheumatoid Arthritis: A psychological intervention. He even practised for many years with his father. In 1983, the McGraws and a Texas lady named Thelma Box formed a company which created “Pathways” seminars, “an experience-based training which allows individuals to achieve and create their own results.” Box is the person who taught Dr. Phil all those quaint sayings and “truisms” which he so famously quotes on the show.

In between his schooling and psychologist practice there were two marriages. The first to a Texas cheerleader which lasted three years and the second to Robin Jo Jamieson who was 22 when they married and who has been a stay-at-home wife and mother for all of those years. This marriage stuck and they have two sons, one who is following in his father’s footsteps by writing books and hosting his own TV shows and the other who is a music major at university.

Eight years after joining them, Phil alienated both his father and Thelma Box by selling his shares in Pathways for $325,000 without telling his partners before he did so. This created the distance between father and son and alienated Ms. Box completely.

Phil McGraw used the money to create a company in 1990, with lawyer Gary Dobbs called Courtroom Sciences Inc. (CSI), a trial consulting firm through which McGraw later came into contact with Oprah Winfrey. Eventually, CSI became a profitable enterprise, advising Fortune 500 companies and injured plaintiffs alike in achieving settlements. McGraw is no longer an officer or director of the company.

In 1995 Oprah hired CSI to help her in her Amarilo Texas Beef trial and the rest is history. He was invited onto her show and was so popular that he bacame the “Relationship and Life Strategy Expert” on Tuesdays starting in April 1998. In the next few years McGraw wrote 4 books which became very popular and in September 2002 formed Peteski Productions and had his own show which was all the rage until last year when the ratings went down and the show has gone back to being a local American show.

In those years there have been lawsuits as the money vultures circled around to try and get some of the wealth which he began to accumulate. The first was over his diet products. Others were from the two brothers accused in the disappearance and murder of Natalie Holloway while on a Caribbean vacation. Then the Spears family sued after an intervention with Britney where he spoke about intimate family details publicly. A controversy was created in Florida when the Dr. Phil show posted bail for the ringleader of eight girls who viciously beat another girl and videotaped the attack.

Now his show has slid in the ratings and been replaced by the latest phenoms Dr. Oz and the Doctors’ Show which is being produced by Dr. Phil’s company. Always controversial, love him or hate him, he is a truly American Star who understands psychology well enough to earn large sums of money telling Americans what their problems are and convincing them that he knows how to solve them.

Real Life

Sunday, December 13th, 2009

by Dr. Phil McGraw

Do you believe that life happens to you? Or do believe that you make it happen? Whichever you believe in your own mind will control how you react to some of the possibilities and certainties of life.

Of course we’ve all read and heard about how setting goals and believing in ourselves (“I think I can. I think I can”) will help us through just about everything in life. Did you know that Jeffrey Gitomer, one of those excellent sales and motivational people, believes that the book The Little Engine That Could should be taken off the kids literature shelves and put on every adult’s bedside table for inspirational guidance? But in real life it is preparing ourselves by thinking about the inevitable that will see us through the tough times and the “new to us” happenings.

This book is about preparing yourself through reading and thinking about the inevitable days which will come during your life. According to Dr. Phil there are seven particular days which you need to be prepared for so that you can be there for yourself or be the calm in the middle of a storm for those you love when the time comes along.

The first day to prepare for is Loss. Losing something of great value through death, divorce, disaster or theft. Thinking about such things before they occur can ease the burden. In reality, we all will die. Of course, we will miss them and regret the things which did or didn’t happen between us but would anyone want their loved ones to stop living because they do? In some cultures that was expected but in today’s modern world we are educated enough not to diminish the accomplishments of loved ones by proving that we cannot cope with the world without them present. Divorce usually happens because people change their beliefs and emotions. That too is a natural part of life. No one keeps the same beliefs that they had in childhood all the way through life. It is natural for us to grow out of the belief that there are monsters under the bed or that you need a parent to do everything for you throughout life. It’s natural to change your mind about having one type of career in life. So, it is also natural that we change the things we like to do and the people we want to be with throughout our lives. This is not necessarily a rejection of the other person but a change in our wants and needs.

The second day to prepare for is Fear. The day you realize that you have lived your life in fear of what others expect or think about you. Finding you own hopes and goals is the right way to get past this very tough day. Life was not meant to be lived in dread of consequences but in the joy of learning and helping and being.

Third is the Adaptability Breakdown day. The day when your pressures and responsibilities seem too great for you to bear any longer. That day when you are in way over your head. How you cope and where you find your backup system is important to your survival. Putting things like friends, religion and things you like to do in place long before that day arrives is important.

Fourth is that awful day when you realize your Physical Health is compromised. It happens to every single human on this planet when we find that our body is wearing out and not repairing itself perfectly. For some this day comes much too early, for the lucky few it comes very late in life – but it always comes. How we face reality is a choice we make. Expecting any different is just not realistic. We can do everything possible to stave off the fourth day but it will come eventually no matter how many vitamins we take or how many marathons we run. Our bodies will break down. So enjoy every minute you can before it does.

The fifth day is when the Mental Health of yourself or a friend breaks down and betrays all the promise which seemed so bright. The mind can be sick or malfunctioning just like the body. It is not something to hide and fear. It is something to recognize and do whatever we can to help rejuvenate or treat just as we do any other part of the body.

The sixth day is when Addiction arrives and you realize that you or a loved is not in control any more. Staring that monster in the face is one of the very hardest times in our journey through the world. It’s not easy to admit, even to ourselves, that our parent or child is on a path to destruction. It’s even harder to admit that we ourselves are not managing our selves or our actions any more but some outside substance or need has taken over. Whether it’s an obsession or a physical need we must get back our or our loved ones control in life.

The last is the day when we lose our compass, our direction and the connection to the meaning  in our life. When we start to scream “Why?” and nobody seems to answer. The day we feel useless and ineffectual for whatever reason is the day that we need to find a new goal, a new motivation, a new reason. Although this happens for many reasons, old age is a very sad time when we feel marginalized and not involved in life. What we do about that is ours to decide.

Always keep an idea in your back pocket against that day. Write yourself a letter which you can read when in doubt and tell yourself what good things have happened because you are here. It’s like the movie “It’s a Wonderful Life” which comes around each year at this time. What would this world be like if you had never been here? Don’t give up before you’ve accomplished everything possible!

This book is about putting mental, emotional and physical supports in place all around you to make sure that when the inevitable comes your way you have a system and a plan in place to help you cope. Reading and thinking about such days doesn’t mean you will bring them on yourself. When were you put in charge of the world and given that much power?

These days will not come in any particular order and you will never feel totally ready but you can think and prepare so that you will be a help to yourself and those around you rather than losing all control and despairing of every finding joy again. Be your own best friend.

Family Law – Marriage and Personal Finances

Sunday, December 6th, 2009

What you don’t know might surprise you. By Larry MacDonald

Emil Saumier is a black belt and fights in martial-arts competitions. He also runs an Ottawa martial-arts school where the students respectfully address him as “Sensei.”

But he was no match for a marriage breakdown. “It was like dying while still alive,” he recounts.

The divorce was particularly devastating in terms of his personal finances. He hadn’t paid much attention to how they were arranged. And he went into the separation largely unfamiliar with the family laws in his province.

Divorce is something we don’t like to think or talk about. But the fact remains: close to half of the marriages in Canada end up at this destination. Knowledge of family law in your province might come in handy — if only to provide motivation to be nicer to your spouse and avoid such outcomes!

Family law can have its unexpected twists and turns. What you might assume is the case isn’t always so. “Several jurisdictions have unique rules which can result in a division of property that can be very different than what the parties expected,” notes tax and estate lawyer Christine Van Cauwenberghe in her book, Wealth Planning Strategies for Canadians 2010.

Here are a number of things Van Cauwenberghe cautions people to be aware of:

1. Many people assume assets acquired before marriage are exempt from the division of assets. This is generally true, except:

  • in some provinces including Ontario, Newfoundland, and Saskatchewan, a family home (and cottage) may be shareable even if it was acquired by one spouse prior to the marriage
  • in B.C. and Nova Scotia, many different assets may be shareable even if they were acquired before the marriage
  • assets acquired before the marriage can become shareable if they are used for family purposes
  • prenuptial agreements can provide protection but some have been struck down by the courts when there was inadequate disclosure, duress at time of signing, and/or a limitation on spousal/children support to the extent it was viewed as unfair or detrimental (prenuptials drawn up by lawyers representing both sides are more likely to stand up)

2. Many persons also assume gifts and inheritances are separate from matrimonial assets but in some jurisdictions, they are not. And in those where they are separate, there are caveats such as the following:

  • inheritances and gifts used to purchase family assets are shareable (especially if no records are kept and the funds are not invested separately in an account under the receiving spouse’s name)
  • growth in the value of the invested gift or inheritance is shareable unless the parent’s or benefactor’s will rules out sharing
  • money given by a parent to an adult child to buy a home or other gift can be shareable if the money was not provided as loan with clear instructions for repayment
  • if the home is owned by one spouse’s parents, the other spouse may be left with nothing after a separation or the death of their spouse

3. Businesses are included in family assets in some jurisdictions and not in others. Even in jurisdictions where they are not shareable, they could become so if the owner’s spouse makes a direct or indirect contribution to the business. A business owner whose business takes on household debt to make the interest payments tax deductible could end up with all of the household debt and none of the assets.

In an email, Ms. Van Cauwenberghe underscored, with an example, the strange outcomes that can result from family law: “In a few provinces the marital home is shareable even if acquired prior to the time of marriage. So if one person owned the $500,000 home that they live in, and the other came into the marriage with $500,000 in investments, and they then separate, the person who owned the home may owe their former spouse $250,000 while the other spouse wouldn’t owe them anything in return.”

The Good Earth

Sunday, December 6th, 2009

- by Pearl S. Buck

One of my favourite writers, Pearl Buck, was born in Hillsboro, West Virginia, in 1892 but at the age of three months returned with her parents to Zenjiang, China. Her parents were Southern Presbyterian missionaries. While her father travelled looking for Christian converts, her mother ran a small dispensary for Chinese women. For forty years, Pearl lived and worked in China. She was completely fluent in both Chinese and English.

Pearl lived through the Boxer Uprising in 1900 when many foreigners were killed by roving gangs of Chinese who blamed all their ills on the foreigners living in their country. The family escaped to Shanghai and spent many anxious months waiting to learn the fate of her father. When he finally escaped and joined them they returned for another home leave in the United States.

Shortly thereafter, they returned to China and except for four years of college in the United States, Pearl lived and taught in China well into her forties.

After marrying an agricultural economist named John Lossing Buck she moved to rural Nanxuchou in Anhui province where she collected the material that she used in The Good Earth and other stories of China. She and her family lived through the Nanking Incident and were rescued by an American gunboat which took them down river to Shanghai.

As Kuomintang Nationalist troops neared and entered the city, which had many foreign residents, the Communist troops within the Northern Expeditionary Army targeted and looted foreign properties, doing much damage and killing and injuring many foreigners to discredit the Nationalist Party. Western and Japanese warships on the river responded by shelling Chinese forces in an effort to stop the looting of the city.

Chiang Kai-shek and his moderate wing of the Kuomintang blamed the outrages on communist elements in the army, an explanation which the Japanese and many westerners were very ready to accept. Although at the time he had no good evidence to support this, new research into the archives of the Soviet Embassy in Nanjing appear to confirm his suspicions. Foreign outrage was strong but the Americans and Japanese in particular wanted to avoid action against Chiang that would weaken his hand against the communists, whom they feared far more.

The Good Earth tells the story of life in the countryside before the 1949 Revolution which saw the Communist Party take over China. The Chinese Civil War changed the institutions, culture and ethics of Chinese life. The story tells how a rural family survived the huge upheavals. It is primarily the story of O-Lan who manages to save her family’s farm and land through a chance finding of pearls while trying to survive in the city during a time of famine and starvation. The pearls help the family to keep their farm land and buy back their home. The only thing which O-Lan asks is that she be allowed to keep two pearls for herself. Her youngest son becomes enamoured of a bad girl who convinces him to give O-Lan’s pearls to her. This threatens to break up the family but in time the son realizes what he has done and is reconciled again when he returns his mothers pearls to her.

Published in 1931 and 1932 this book won the Nobel Prize for Literature in 1938 and was a best selling novel for many years. It was this book and the many others which she wrote which created the idea of connection with the Chinese people and encouraged making China an ally during the Second World War.

Great sympathy was created with the Nationalists as they and the Communists fought to change the ruling of China from a monarchy into a modern democratic state. In the end, the Communists won but successive American governments backed the Nationalists who were exiled to Taiwan for many years until Richard Nixon made his epic historical journey to meet with Zhou en Lai during his term of office. Pearl Buck had known Zhou for many years and felt that he was a much better person than Mao ever was.

In 1937 a movie of The Good Earth was made which starred Paul Muni and won a Best Actress award for Luise Rainer. Very good historical content from someone who lived through a lot of it.