Disclaimer:
I'm not a person from the financial community, neither a person into Life-critical illness insurance, RESP, RRSP, real estate, car or auto insurance or anything related to money. I'm a highly qualified chemist currently working as a general labour. I've read a whole of books, written a few chapters in a few international reference books in Plastics/Polymers, but the best book I've ever read after Bhagvad Gita is the book called "Financial Sense for Non Financial Professionals by Prasanna Chandra a Prof in IIM-A".


This is a piece of advice I would like to pass onto the new immigrants. This is from practical experience and not from heresay. I've suffered enough and hence I do not want you guys to do the same.

Background:

You are entering/in Canada a former colony of Britian. Remember our past how we were ruled by a Company called East India Company in Calcutta, which came into India to trade in spices, silk and other stuff from India to Europe and later took over India. East India Company was a middle man also called Broker which became a Trader.

Canada is from the British past, while US of A is from the Irish origin. You need to know this difference. Hence everything in Canada works through Brokers/Middlemen/Agents/Consultants. Whether you like it or not this is the way it works. If you work through an employment agency, the agency would make about $2 to $3 per hour while you break your back to earn $8. It starts from this and goes all the way into the government. Remember the recent sponsporship scandal which toppled the liberal government.

My Mistake:

I thought that being an educated individual, who could read and write English and had a financial sense could lots of financial planning myself. Boy I was wrong.

I learnt through the hard way, In Canada nobody lies but nobody also reveals the full truth. There are many things hidden underneath, many times in the fine print which we over look, or do not have the patience to read through.

Example: When I landed here eventhough I had a US driving record, none of the good Insurance agencies wanted to touch me. I had to go through ING which charged me $325 for one way and I did not know what to do. Luckily I had a conversation with a good financial consultant who gave me the tip to Meloche Monnex and how to enter into their system. My auto insurance fell to $130 one way.

Here in Canada time is money. There is a financial incentive for every transaction. This might be even at home when you make a deal with your child saying I'll buy you a toy if you do your home work. Your elder child would expect her pocket money which might be some form of cash incentive for baby sitting the younger one or cleaning up the house hold.

Even your wife would look at her earnings in hourly rate in order to make a financial decision whether to make rotis at home, by spending her time on the hot burner or to buy it from your neighbouring store. When we buy some food, we always complain and say it is cheaper to make it at home. We neglect the time, effort put in by your wife in the hot kitchen to make the same and more over to clear the utensils and clean it and make it ready for the next day. Hence the point I'm trying to reiterate here is that "Time is Money" and every act has a financial consideration and hence I would like to drive to the statement that "Nothing is Free".

Many time we expect friendly advice from our friends, and we always end it up with "I owe you One". You cannot expect somebody else to do advice you for free.These are proffessionals who do it for a living and there is a cost involved for their periodic skill upgradation. Many times you get referral fee for introducing your friend for a auto dealership, apartment rental or Insurance. Please do not be hesistant or ashamed about it. If you are offered something take it. It might be $25 but it is a whole of money. Do not feel that your friend might feel wrong.

Hence the Case I'm presenting to you is that there are two ways of Financial Success in Canada. One way is to increase your income, if not if your top line is fixed you need to reduce your expenses or make the best possible investments to obtain the best returns over a period of time. Over and above it please note that US of A is a Capitalist society while Canada is a Socialist country. You coming here as a skilled immigrant need to show your Settlement Funds at the port of entry. While a Refugee will be greeted with an open arm with $2000 settlement fund paid for the government, subsidised housing and also subsidized day care and many other perks. Look at many of the refugees, they have many children as they are gaining on the CCTB with every child. Hence do not feel ashamed. Exploit every available opportunity in terms of subsidy, support payment, subsidied accomodation and every free scheme in terms of skill upgradation, educational loans and free opportunities.

Hence you need to know the loop holes, the fine print and the catches in every financial transaction you are going to make in Canada. The guys who know it are the financial consultant. They will not work for free, as it their bread and butter.Hence you need to get yourself a good financial consultant, who would work with you right from your first earning, income tax filing, Tax planning, investment planning, introduction to banks, introduction to credit cards, getting your RESP, getting your RRSP, planning your CHARITABLE CONTRIBUTIONS(Big Racket !). How many of us know about this while sitting in India, US of A or in Kuwait. Yes I understand you are a CA, ICWAI, CPA and a big Finacial Genius in Dubai. But it would take you about 3 to 5 years to understand how the system in Canada works. Do you know that you need to have a Will in Canada, and if you do not have one and you die, you will leave your family in a whole lot of mess.

Hence my advice to you is to shop around for a good financial consultant, who would advice you on your current situation, and plan you for your future. Always look for one who would offer you the choices and leave you to decide than the one who is trying to push you a product which offers him the best commission. Many times we feel upon landing that Hurray!, I'm just making $10 an hour and how much I would save and will a financial consultant would be interested. Believe me, most of the financial consultants are also people who started like us. They know our predicament and they also know your potential that today you are a $20,000 guy but you would be $100,000 in the next few years. He would start with your small amounts with the interest in your future potential.

Hence as soon as you get your PR card, SIN card, OHIP card start shopping around for a good financial consultant. There are many good ones on CD and hence you should contact them for future planning.

Do not expect free advice as it their bread and butter. Many times they will earn their own fees by making that extra savings in your tax return or on your investment return which you did not know existed.

Good Luck & God Bless !

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"When we were young kids growing up in America, we were told to eat our
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who would make you starve, if you don't.'"

Sankaracharya,
This is a very nice article. Thanks for talking your time and putting it on the forum. Yes. There will be brick bats thrown at you by some sucessful in Canada CD members but as you and i know, you are putting it for people who suffer in Canada. Please add on to this article when you have time and i will also do so.
Thanks for your interest in helping New CD members who are struggling in Canada for their bread and butter.
TK
Mod's : Can we make this a sticky?

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I am a Gents and not a Ladies.

Good Article.

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http://www.youtube.com/watch?v=YMVuD_in67M

E mere vatan ke logo.............

If you want to do something for our country, just dont support corruption or be part of it

Hi,
Thanks for your post, it is indeed informative.
I need more clarification on the role of financial consultant,, who actually we look in for? what are the various function or assistance we seek from him? and how are we be paying them ? any upfront consultation fee? if so how much? can you please clarify on this . Thanks in advance.

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mor

Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.

Hi,

I would be more interested in getting more information onwhat we need to be looking for in a financial consultant.

Have been talking to a few lately related to investments and as rightly mentioned, they seem to be more interested in commissions than suggesting actual savings.

Hence they push for more Life insurance policies than suggesting good saving portfolios which can get u a lot of returns.

Also was interested in learning, who the good investment consultants on this forum are, as indicated in this posting.

Thx

Quote:

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Originally posted by shankaracharya
Canada is from the British past, while US of A is from the Irish origin. You need to know this difference.

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Quote:

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Originally posted by crenshaw

Quote:

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Originally posted by shankaracharya
Canada is from the British past, while US of A is from the Irish origin. You need to know this difference.

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Trying to say this in the most polite way I can; 'you have your facts wrong.....'

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