Latest news with #homeimprovement
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Can Romesh, 54, and Gayle, 52, retire in a decade if they spend $125,000 on a basement renovation?
Romesh and Gayle are in their mid-50s with one child, a combined income of $150,000 a year and a house with a $475,000 mortgage in Toronto. Gayle earns $65,000 a year in education plus another $20,000 a year freelancing, while Romesh averages $65,000 a year as a self-employed freelancer. 'I went back to school during the COVID-19 pandemic and switched careers, leaving a well-paying job as a journalist with a pension to become a teacher,' Gayle writes in an e-mail. 'I dipped into my RRSPs to pay my tuition and took a significant pay cut as a new teacher,' Gayle adds. 'Now my salary will gradually increase every year, maxing out at $110,000 when I turn 60.' In the short term, they want to renovate their basement at a cost of $125,000, which will add to their debt load. They wonder if it would be worth spending an extra $50,000 to add a basement suite they can rent out for extra income. They'd also like to travel more while their son is still young. 'Can I afford to retire at 62?' Gayle asks. 'Can my husband retire at 65?' Their retirement spending goal is $8,000 a month after tax. We asked Jeff McCartney, a certified financial planner with Objective Financial Partners Inc. in Markham, Ont., to look at the couple's situation. Objective is an advice-only financial planning firm. Romesh and Gayle have three main goals, Mr. McCartney says. The first is to renovate their basement for about $125,000, which will need an increase to their mortgage or a line of credit to finance. The second goal is to retire when Romesh is 65 and Gayle is 62 and the third is to travel together as a family while their son is still young. Ezra and Leanne, both 63, fear they don't have enough to retire. Should they take a hard look at their spending? 'Starting with the most attainable goal first, they set an annual vacation budget target of about $6,000,' the planner says. 'Given their current approach to spending, this expense is reasonable, barring no change in their current financial trajectory,' he says. 'Their projected savings rate, even with the vacation cost, appears to have them on track to retire at their target date.' To achieve their two bigger goals, they must start by considering the cost of an increased mortgage or line of credit payment, and the impact that it will have on their long-term savings rate, Mr. McCartney says. His analysis assumed that a $125,000 mortgage increase would have an interest rate of 4.2 per cent and an amortization period of 15 years. 'The good news is that even with this additional mortgage debt, they are still able to achieve their goal of $8,000 per month in after-tax retirement income in today's dollars, albeit with a few additional recommendations,' the planner says. First, Gayle should open a tax-free savings account to take advantage of the tax-free growth that it provides. An additional contribution of $300 per month to this account would have a 'really positive impact' on their ability to maintain their desired lifestyle right through until age 95, he says. Alternatively, putting that same $300 extra per month toward accelerated debt repayment should put them in a similar spot. Their TFSAs would need to earn a higher return than the interest rate on their debt to make investing more compelling than debt repayment. They should also consider using their non-registered investments such as Romesh's crypto ETF account to either fund the renovation or at least to fund Gayle's TFSA, the planner says. 'If you have TFSA room and you have non-registered investments, you are missing an opportunity,' he says. Non-registered accounts are taxable, and TFSAs provide an opportunity to earn a return tax-free. There are no tax issues either for one spouse to give the other spouse money to contribute to their TFSA. Although this is several years away, analysis also indicates that they should delay taking their Canada Pension Plan benefits until age 70, Mr. McCartney says. Delaying CPP from age 65 to 70 will allow them to increase their future payments by 42 per cent. Similarly, they may also wish to consider delaying receiving Old Age Security benefits from 65 until age 70 as well, because this will add an additional 36 per cent to their monthly payments. Romesh and Gayle also wanted to investigate the possibility of spending an additional $50,000 on their basement renovation to make it rental-ready so that it can be used to generate $15,000 a year worth of additional income once they retire. 'This strategy results in an 11-per-cent increase in the family's net worth at Gayle's age 95,' the planner says. Alternatively, Romesh and Gayle could increase their planned retirement lifestyle expenses by five per cent without jeopardizing their financial plan. 'Whether they will want to be landlords in their 70s or 80s is for them to decide, but in the short-term, it could definitely improve their financial trajectory.' There is one significant factor to be aware of here, and that is the change-of-use rules that could limit their ability to claim the full principal residence exemption when they sell their home This exemption allows homeowners to avoid paying capital gains taxes when they sell their primary residence. But under certain circumstances, the Income Tax Act could consider a homeowner to have disposed of either part or all of their principal residence even if they didn't actually sell it. 'This can happen when certain parts of a home, such as a basement, are converted to a rental property, particularly following a renovation,' he says. Romesh and Gayle may want to ensure that their basement apartment's rental use is ancillary to the main use of the property as a residence, that there are no structural changes to the property to accommodate the rental, and that no capital cost allowance is claimed on the property. Can Evelyn, 62, and Ezra, 70, afford to both travel and financially assist their son? Of note, Romesh and Gayle are currently saving $150 per month to RESPs. With a current value of $50,000, they are on track to being able to afford to pay $15,000 per year for four years of postsecondary education when their son is 18. That may be enough to cover the cost if he were to live at home. However, students who go away for university often find the 'all in' costs can range between $20,000 and $30,000 per year, Mr. McCartney says. 'Romesh and Gayle can sit down with their son and discuss the future, what schools will cost, and what he might be expected to contribute.' The People: Romesh, 54, Gayle, 52, and their son, 11. The Problem: Can they afford to renovate their basement and retire in a decade or so with $72,000 a year after tax spending? The Plan: Use Romesh's crypto ETF to either fund the basement renovation or Gayle's tax-free savings account. Gayle should consider contributing regularly to her TFSA to take advantage of the tax-free growth. Alternatively, they could put that $300 a month toward paying down debt. Consider delaying government benefits to age 70. The Payoff: An understanding of the steps they can take now to make it more likely they will achieve their long-term financial goals. Monthly net income: $9,400. Assets: Cash $5,000; his RRSP $300,000; her RRSP $275,000; his TFSA $10,000; his crypto ETF $100,000; registered education savings plan $50,000; residence $1,300,000. Total: $2-million. Liabilities: Mortgage, $475,000 at 2.74 per cent; student loan $15,000 at 2.5 per cent. Total: $490,000. Estimated present value of Gayle's DB pensions: $548,000 for the $25,245 government pension and $542,000 for the $26,490 teacher's pension. This is what someone with no pension would have to save to generate the same income. Monthly outlays: Mortgage $2,300; property tax $390; water, sewer, garbage $75; home insurance $100; electricity $150; heating $50; maintenance $100; car insurance $250; other transportation $290; groceries $1,000; child care $375; clothing $100; student loan $140; gifts, charity $150; vacation, travel $500; other discretionary $60; dining, drinks, entertainment $350; club memberships $160; sports, hobbies $400; subscriptions $50; health care $250; life insurance $200; phones, TV, internet $235; RRSPs $500; RESP $150; TFSAs $400. Total: $8,725 Want a free financial facelift? E-mail finfacelift@ Some details may be changed to protect the privacy of the persons profiled.
Globe and Mail
8 hours ago
- Business
- Globe and Mail
HGM Glass Brings Custom Frameless Shower Doors to Homes in Gettysburg, PA
Let's face it—your bathroom's doing its best, but it's being held back by that clunky, framed shower door that creaks louder than your knees on Monday morning. Enter HGM Glass, now bringing custom frameless shower doors to Gettysburg and proving once and for all that 'simple' can still mean stunning. From their headquarters in Hanover, HGM Glass has earned a reputation for turning glass into a statement—minus the fuss. Now, they're helping Gettysburg homeowners ditch the hardware store look in favor of seamless, made-to-measure glass that opens up a space like a window to relaxation. 'Our clients aren't asking for luxury—they're asking for peace and practicality that happens to look really, really good,' said Morgan Miller of HGM Glass. 'Frameless doors give you all of that without screaming for attention. They're the strong, silent type.' Each HGM install is precision-crafted to fit the layout of your shower—no mass-produced, wobbly panels here. Their shower glass enclosures are clear, clean-lined, and thoughtfully designed to show off tile work, invite in more light, and make cleanup the easiest thing you'll do all week. You can take a closer look at their services via their York Builders Association listing. This expansion into Gettysburg is a natural move for a company that's been steadily upgrading homes throughout York County. And let's be honest—when was the last time your shower made you feel like a grown-up? To see the magic in action (no wand required), check out their location for frameless shower doors Gettysburg on Google Maps, or cruise through their recent work at If your bathroom's stuck in "before" mode, it's time to talk to HGM Glass. Call (717) 853-1468 and bring on the upgrade—clean, clear, and completely frame-free. Media Contact Company Name: HGM Glass Contact Person: Morgan Miller Email: Send Email Phone: (717) 853-1468 Address: 401 Carlisle Street City: Hanover State: PA Country: United States Website:
Auto Blog
9 hours ago
- Automotive
- Auto Blog
Walmart is selling a $319 rolling tool chest for $136, and shoppers say it's ‘sturdy' and ‘easy to roll around'
Autoblog aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission. Stocking your home with the right tools is important, but that doesn't mean they'll be any easier to locate in your living space when you need them most. Thankfully, Walmart is here to help you keep track of your things with a rolling tool box that's more than $180 off and can easily store your drills, wrenches, and more. The Costway 2-in-1 Rolling Tool Chest and Cabinet is on sale for $150, which is 57% off the original $319 price tag. This tool stash has over 90 five-star ratings at Walmart and shoppers say it's 'durable,' 'wear-resistant,' and 'easy to roll around.' It comes in three different colors, but the black and red option gives you the most bang for your buck. Costway 2-in-1 Rolling Tool Chest and Cabinet in Black and Red, $136 (was $319) at Walmart When it comes to sturdiness, this moveable tool box is hard to beat. It's designed with rustproof, power-coated metal and anti-seismic EVA material that will protect your tools at all costs. Plus, this 2-in-1 stash can be rearranged so that the top tool chest and bottom cabinet are separate, allowing you to truly take your equipment anywhere. No matter how you mix and match it, there are five sliding drawers that are safe and easy to lock. And speaking of locks, this rolling tool box uses lockable wheels to stay put when you need it to. All in all, it can hold up to 220.5 pounds, with every drawer able to load up 11 pounds apiece. 'I've been searching for something to organize all my tools. Whenever I need a hammer or screwdriver it seems they are nowhere to be found and I waste so much time looking,' one shopper began. 'So I found this tool chest which works great for me. I really like how the top is detachable and I can take it to any part of my house without any trouble or unloading the drawers.' 'Exactly what I needed for my tools,' another reviewer said. 'Now everything is in one place and very easy to access. This turned out to be a sturdy toolbox with great drawers and compartments, all lined so things don't slide around.' The Costway 2-in-1 Rolling Tool Chest and Cabinet's reduced price won't last much longer, so enjoy more than 50% off before this Walmart deal rolls away. About the Author Daniel Donabedian View Profile
Times
10 hours ago
- General
- Times
How to fit a water butt to save water this summer
Q. With the potential for water restrictions this summer, I would love to install a butt to collect rainwater for my plants. Are there any considerations I should be aware of before attempting to fit one? Keziah, Camberley A. There are many designer and wall-mounted space-saving options available, so take advantage of all your gutter downpipes — and don't hide your water butt out of sight. Whichever style you opt for, ensure you can fit a watering can under the tap; if necessary, buy a stand to raise it. If you have room for more than one butt, I recommend linking two or three side by side to collect even more water. To harvest water from the downpipe, you'll need to buy a rainwater diverter kit that's suitable for either your square or round downpipe, ideally in a matching colour. With your water butt positioned on a stable base next to your downpipe, you can determine the correct height to attach the diverter kit. This measurement is crucial as it must be fitted at a height just above the inlet pipe of the water butt, allowing the diverted water to flow freely into it. However, it should not be higher than the lid of the butt itself, as we want excess water to flow back into the drains when the butt is full. • How to create a Chelsea-inspired water feature The diverter works by intercepting the water in its trough as it runs down the inside edge of the drainpipe, diverting it into the butt. Once full, excess water will flow back into the drainpipe, preventing it from overfilling. To fit the diverter, you first need to cut your plastic downpipe horizontally across using a universal handsaw. It may feel tricky to cut alongside the wall, but it's not impossible. It helps if you can turn the pipe away from the wall as you cut. You may need to loosen the lower fixing wall brackets to facilitate this. With the pipe cut in two and the lower half dropped slightly, you should be able to manipulate the diverter into position. Then, raise the lower pipe to create a snug fit and tighten the wall bracket to secure it. Using the flexi pipes supplied with your diverter kit, link everything together. Fitting a water butt is not only a DIY win for you but an environmental win for us all. Follow Wayne Perrey at
CTV News
15 hours ago
- CTV News
Ontario police warn of increase in driveway paving and roofing scams
Huge pile of asphalt left by workers at the end of Paulet Blenman's driveway in Ajax. (CTV News) The Ontario Provincial Police (OPP) has issued a warning following an increase in driveway paving and roofing scams they say are happening across the province. According to the OPP, some contractors are going door-to-door using fake names, promising great deals and demanding cash, but doing poor quality work and leaving messes behind. 'All the information is not correct, they don't answer the phone, there is no way you can leave a message. You can't send an email, you can't contact them,' Paulet Blenman of Ajax, Ont. told CTV News Toronto last week. Blenman had her driveway paved a month ago and said the contractors who offered the services came knocking on the door, and once they completed the work, she said they left her driveway lumpy and uneven with ants already burrowing in it. She ended up paying $6,000 to have it repaved. In Luigi Raffaele's case, he told CTV News someone also knocked on his door in East York. That contractor said he would do a sealing job as well as some additional work, but once Raffaele paid $3,900 upfront, he said the contractor never came back. 'I feel cheated and that's not nice.' On Tuesday, OPP issued a warning stating contractors are going door-to-door pressuring homeowners into paving driveways, repairing roofs and other home renovations. 'They may seem professional, with flyers and websites, but often they are using fake names and false IDs,' said Sgt. Joe Brisebois, coordinator of media services with the OPP. 'They will ask for cash upfront and in the end, they will leave behind a poor quality job and you will never hear from them again,' Brisebois added. To avoid falling victim to these scams, the OPP is urging the public to beware of unsolicited door-to-door sales, not to feel pressured into having work done, researching companies carefully, getting multiple quotes and to not pay in advance. Police also said if you're not careful, you could be the one picking up the pieces of a botched paving job. But, if you do agree to have your driveway paved or your roof repaired and the contractor does a poor job, it doesn't mean the police will get involved and lay charges. Once someone is hired, it becomes a civil matter and you would have to take them to court.
