Comments on: Reader Question on Manulife One Account http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Marlen http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1468606 Marlen Sat, 04 Feb 2012 12:57:35 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1468606 Can you clarify this for me please. A person is using this account as a all in one product and they pay simple interest at 3.50% and a monthly fee of 14.00. Are they not withdrawing there own money from this account ? And they are paying 3.50% to use there own money. If someone who is well versed in this product can they respond. Can you clarify this for me please. A person is using this account as a all in one product and they pay simple interest at 3.50% and a monthly fee of 14.00. Are they not withdrawing there own money from this account ? And they are paying 3.50% to use there own money. If someone who is well versed in this product can they respond.

]]> By: Stephan http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1441995 Stephan Fri, 27 Jan 2012 04:40:40 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1441995 The other advantage of Manulife One is that the interest is calculated daily, so as soon as you make a payment, you are saving money. Traditional mortgages only adjust the interest payments periodically, so a mortgagee cannot get ahead. The original article also neglected to mention that little tidbit. Steve The other advantage of Manulife One is that the interest is calculated daily, so as soon as you make a payment, you are saving money.

Traditional mortgages only adjust the interest payments periodically, so a mortgagee cannot get ahead.

The original article also neglected to mention that little tidbit.

Steve

]]> By: Stephan http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1441984 Stephan Fri, 27 Jan 2012 04:36:45 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1441984 The one crucial point that is not mentioned in the original article is that regular mortgages are skewed so that almost all of your original payments go towards the interest owed, not the principal of the mortgage. The payments on a Manulife One account go towards the principal all the time, and the interest rate is comparable to that offered on a mortgage. That's why Manulife One saves people money. Steve The one crucial point that is not mentioned in the original article is that regular mortgages are skewed so that almost all of your original payments go towards the interest owed, not the principal of the mortgage.

The payments on a Manulife One account go towards the principal all the time, and the interest rate is comparable to that offered on a mortgage.

That’s why Manulife One saves people money.

Steve

]]> By: George http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1394428 George Fri, 13 Jan 2012 03:01:57 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1394428 "Mortgage Insurance" is offered by Manulife, but it's probably better to just get term insurance. The rates are probably better, but we didn't really check into this thoroughly. There is a $14/month fee for the statement. It's really just a token fee, because the monthly statement is worth it's weight in gold, giving a comprehensive overview of your financial state of being. It's been fun watching our bar graph decreasing the past few months - and it's been dramatic! Should have done this years ago. Consolidating everything has been a reassuring thing, a wise thing to do, and actually fun. We have a simple snapshot of our finances given to us at the end of every month and it is good for planning and motivating wise spending. Having the paycheque hitting the debt immediately is profound and virtualy everthing is on automatic now - the credit card (that 3% "Cash Back" from MBNA), all bills, tax returns, etc. We still highly recommend Manulife One. “Mortgage Insurance” is offered by Manulife, but it’s probably better to just get term insurance. The rates are probably better, but we didn’t really check into this thoroughly.

There is a $14/month fee for the statement. It’s really just a token fee, because the monthly statement is worth it’s weight in gold, giving a comprehensive overview of your financial state of being. It’s been fun watching our bar graph decreasing the past few months – and it’s been dramatic! Should have done this years ago. Consolidating everything has been a reassuring thing, a wise thing to do, and actually fun. We have a simple snapshot of our finances given to us at the end of every month and it is good for planning and motivating wise spending.

Having the paycheque hitting the debt immediately is profound and virtualy everthing is on automatic now – the credit card (that 3% “Cash Back” from MBNA), all bills, tax returns, etc.

We still highly recommend Manulife One.

]]> By: Considering M1 http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1353154 Considering M1 Wed, 04 Jan 2012 15:22:29 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1353154 We are considering M1. I asked about any monthly fees, and I was told that Manulife gets their 'pay' solely from the 3.5%... is this the case? Is there a monthly fee? Also, is this insured in anyway. Right now, if I die, the house is paid for through mortage insurance. What insurance is offered with M1? We are considering M1. I asked about any monthly fees, and I was told that Manulife gets their ‘pay’ solely from the 3.5%… is this the case? Is there a monthly fee?

Also, is this insured in anyway. Right now, if I die, the house is paid for through mortage insurance. What insurance is offered with M1?

]]> By: confused http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1348688 confused Tue, 03 Jan 2012 23:00:47 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1348688 please HELP! We have 2 mortgages on 2 properties. The reason being, we invested in a REIT and use much of the mortgage money on that. Our mortgages renew in a couple of months. We were thinking of simplifying things and consolidating. We do not carry any other debt but we feel we are living month to month. Wife is home with 3 kids now so there are 5 of us living on my income. What is our best move here? please HELP!
We have 2 mortgages on 2 properties. The reason being, we invested in a REIT and use much of the mortgage money on that. Our mortgages renew in a couple of months. We were thinking of simplifying things and consolidating. We do not carry any other debt but we feel we are living month to month. Wife is home with 3 kids now so there are 5 of us living on my income. What is our best move here?

]]> By: Getting the M1 http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1318576 Getting the M1 Wed, 28 Dec 2011 21:21:39 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1318576 I am getting the M1 account. I am sick of paying $689.00 per week and only paying $12000.00 off my mortgage this year. I have a high mortgage but have 35% principal. We would like to finish our basement but cant afford it because the bank has it all. I have crunched the numbers and figure going this way, just paying what I am towards my mortgage, I will pay off an extra 10k. However, all of my money will be going against it. It's a no brainer. Also, the flexablilty of finishing our basement and not having to go to credit cards or applying for a loan- just write a cheque-wow I am getting the M1 account. I am sick of paying $689.00 per week and only paying $12000.00 off my mortgage this year. I have a high mortgage but have 35% principal. We would like to finish our basement but cant afford it because the bank has it all. I have crunched the numbers and figure going this way, just paying what I am towards my mortgage, I will pay off an extra 10k. However, all of my money will be going against it. It’s a no brainer. Also, the flexablilty of finishing our basement and not having to go to credit cards or applying for a loan- just write a cheque-wow

]]> By: just a girl http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1233724 just a girl Sun, 11 Dec 2011 23:51:34 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1233724 We looked at the M1 earlier and sat with a representative to go over everything however still have not made a decision. We are in our early 30's and our current mortgage is left at around 160k with over 100k in cash in banks although we do want to renovate our kitchen and 2 bathrooms and finish the basement. I guess we are torn, do we get rid of the mortgage then renovate or get the M1. We looked at the M1 earlier and sat with a representative to go over everything however still have not made a decision. We are in our early 30′s and our current mortgage is left at around 160k with over 100k in cash in banks although we do want to renovate our kitchen and 2 bathrooms and finish the basement. I guess we are torn, do we get rid of the mortgage then renovate or get the M1.

]]> By: GEORGE http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1225412 GEORGE Fri, 09 Dec 2011 22:15:58 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1225412 ps, forgot to include a link from Professor Milevsky talking about the inherent strategy of the M1: http://www1.manulifebank.ca/E/m1/ProfessorMilevskyExplains.html ps, forgot to include a link from Professor Milevsky talking about the inherent strategy of the M1:
http://www1.manulifebank.ca/E/m1/ProfessorMilevskyExplains.html

]]> By: GEORGE http://www.canadiancapitalist.com/reader-question-on-manulife-one-account/#comment-1225390 GEORGE Fri, 09 Dec 2011 22:11:42 +0000 http://www.canadiancapitalist.com/2008/02/05/reader-question-on-manulife-one-account#comment-1225390 Ok, well, we've had the M1 for several months now and it is a GOOD thing! We decided to put a hefty amount against what we owed with savings, since paying off a loan is better than trying to earn a smaller amount of interest and also paying tax on interest earned. Having this account sort of changes your perspective on investing. We created a fixed-term "SUB-ACCOUNT" in the M1 to pay off what is left on our house. It is locked in at 3.48% (if I remember correctly) for 5 years, since we anticipate rising rates. Nonetheless, that rate is astounding low historically speaking - why quibble about a possible small drop that "might" happen over next couple years. We appreciate the comfort of knowing the monthly, fixed amount going out to pay off the house over 5 years. We also followed through original plan having everything possible being paid automatically from the M1 account: utilities, taxes, tax refunds, etc. and also paid automatically monthly is our MBNA "SMARTCASH" Mastercards, which pays us 3% on groceries and gasoline, and 1% on anything else. (We have 2 separate SmartCash cards to utilize the $600 cap/person.) They send us a $50 cheque whenever that amount has been earned. We use the smartcash card like a debit card, and once again, it's paid off automatically, monthly! One other thing; as we get older the easy access to the equity that has been built up in our house will be instantly available if a family emergency develops in the years to come. We haven't researched the data, but this must surely be a better way to go for some people who might ever consider those wierd "CHIP" plans. All in all: the M1 is simply a joy!! Oh, yeah, that monthly summary is also top notch. (http://www2.manulifeone.ca/about-my-account/my-statement/) Ok, well, we’ve had the M1 for several months now and it is a GOOD thing! We decided to put a hefty amount against what we owed with savings, since paying off a loan is better than trying to earn a smaller amount of interest and also paying tax on interest earned. Having this account sort of changes your perspective on investing. We created a fixed-term “SUB-ACCOUNT” in the M1 to pay off what is left on our house. It is locked in at 3.48% (if I remember correctly) for 5 years, since we anticipate rising rates. Nonetheless, that rate is astounding low historically speaking – why quibble about a possible small drop that “might” happen over next couple years. We appreciate the comfort of knowing the monthly, fixed amount going out to pay off the house over 5 years. We also followed through original plan having everything possible being paid automatically from the M1 account: utilities, taxes, tax refunds, etc. and also paid automatically monthly is our MBNA “SMARTCASH” Mastercards, which pays us 3% on groceries and gasoline, and 1% on anything else. (We have 2 separate SmartCash cards to utilize the $600 cap/person.) They send us a $50 cheque whenever that amount has been earned. We use the smartcash card like a debit card, and once again, it’s paid off automatically, monthly! One other thing; as we get older the easy access to the equity that has been built up in our house will be instantly available if a family emergency develops in the years to come. We haven’t researched the data, but this must surely be a better way to go for some people who might ever consider those wierd “CHIP” plans. All in all: the M1 is simply a joy!! Oh, yeah, that monthly summary is also top notch. (http://www2.manulifeone.ca/about-my-account/my-statement/)

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