|  Ho Ho … uh oh! Supply chain woes and your holiday shopping I’ve already mentioned how the massive traffic jam that has engulfed global trade over the past several months threatens our holiday shopping. Big and small retailers are warning of shortages of anything from toys and electronics to sneakers and Christmas decor. One obvious piece of advice is to shop extra early this year. My six-year-old, who is extremely particular about brands and toys, is writing his letter to Santa next week because I do not want to find myself making up stories about elves getting stuck on cargo ships. But there are other ingenious workarounds. If you can’t find what you want new, you could consider buying pre-owned. There are lots of people selling items in like-new conditions these days on platforms like Facebook Marketplace. If you’re looking for electronics and small kitchen appliances, eBay has a refurbished program that re-sells customer returns at a big discount. Manufacturer-certified refurbished products come with a two-year guarantee. Another way to sidestep supply chain issues is to buy local, although that’s not a panacea as many local shops are struggling mightily with delays. So are manufacturers who rely on imported parts. Finally, you could resort to gift cards (which allow your loved ones to buy exactly what they want when it’s back in stock) or opt for experiences instead of products. Gift cards for restaurants and Zoom cooking classes are a great way to help your favourite local eateries during the tough winter months. Here’s more about what to expect this holiday season. And here is my explainer on how this whole supply chain mess came to be.  Interest rates are headed up: what it means for mortgages The Bank of Canada said on Wednesday it's keeping its trend-setting interest rate on hold for now, but borrowing costs for many Canadians are likely headed up.  On Wednesday, Canada's central bank said it is holding its key interest rate at 0.25 per cent, where it has been since March of 2020. But details of its policy announcement have analysts warning that interest rates are likely to climb higher sooner and faster than previously expected.
If you’re house-hunting or your mortgage is about to renew soon, here’s what to think about.  The CRB is over. Its tax implications are not The Canada Recovery Benefit, which replaced the Canada Emergency Response Benefit (CERB) for self-employed Canadians, has ended. But for the hundreds of thousands of people who received the benefit in 2021, the tax consequences of the federal income support programs will spill into 2022. Unlike with the CERB, Ottawa withheld 10 per cent tax at source on all CRB payments. However, recipients may have to pay more tax on their CRB income at tax time. And anyone with net income above $38,000 in a calendar year will have to repay $0.50 of the benefit for every $1 of net income above the threshold. But just because you received the CRB and went over the $38,000 threshold doesn’t necessarily mean you’ll have a huge tax bill. Here’s why. ___________________________ – THE QUESTION – “We are receiving some inheritance money in the near future and want to put it in a tax free savings account (TFSA) as we get close to retirement but at the same time want it to earn more than the bare minimum interest that a savings account usually gets. What is suggested for investing in a TFSA to stay ahead of inflation?” — A Money123 reader “My first suggestion is to confirm that a TFSA contribution is the most financially optimal use of the inheritance. If you are in a higher tax bracket now than you expect to be in retirement, you may want to consider an RRSP contribution instead. Also, be sure to eliminate any high-interest debt before investing in a TFSA. The next step is to determine how much risk you are comfortable taking in your TFSA. Your time horizon, level of investment knowledge, and how you react to volatility, are all factors used in establishing your risk tolerance. If your goal is to outpace inflation and save for retirement, I suggest building a TFSA portfolio made up of five stable, blue-chip, dividend-paying stocks. Invest only in company's you are familiar with, and consider diversifying amongst the following sectors: financials, utilities, telecoms, railways, food companies, and real estate. A self-managed stock portfolio eliminates management fees that can eat into your returns. ETF (Exchange Traded Fund) portfolios that match your risk tolerance offer another suitable option for building a low-cost, diversified portfolio within your TFSA. If picking stocks and ETFs is beyond your level of comfort, look to work with an advisor who has a fiduciary responsibility to work in your best interest. Hiring a CFA (Chartered Financial Analyst) whose fees aren't tied to specific product recommendations is one of the best ways to access qualified, professional investment advice.” — Ayana Forward, certified financial planner, Retirement in View ___________________________ Want your money question answered by an expert? Get in touch! | 
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