Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Personal Finance
Breaking Free from the Chains of Debt: Your Guide to Debt Review
Oct 19, 2024
Money problems can be really stressful. If you're having trouble paying your bills and debts, you might feel worried, scared, or even hopeless. But there's good news: there's a process called debt review that can help people who are struggling with too much debt.
What does it mean to be over-indebted?
Before we talk about debt review, let's understand what it means to be "over-indebted." This is when you have so much debt that you can't pay all your bills and debts each month. You might be using one credit card to pay off another, or you might be missing payments on your loans. If you're worried about money all the time and can't seem to get ahead, you might be over-indebted.
How does debt review help?
Debt review is a legal process in South Africa that helps people who are over-indebted. It's like having a financial expert on your side to help you deal with your debts. The goal is to make your debts more manageable so you can eventually pay them off and get back to a healthy financial situation.
The Benefits of Debt Review
Debt review offers numerous advantages for those struggling with debt:
Reduced Monthly Payments:
One of the biggest benefits of debt review is that it can lower your monthly debt payments. A debt counsellor will look at your income and expenses and negotiate with your creditors (the people or companies you owe money to) to reduce your payments. This can make it easier for you to afford your debts and still have money for other important things.
Legal Protection:
When you're under debt review, your creditors can't take legal action against you. This means they can't sue you, repossess your things, or harass you for payments. It gives you some breathing room to focus on getting your finances in order.
Structured Repayment Plan:
Debt review provides you with a clear plan to pay off your debts. Instead of juggling multiple payments to different creditors, you'll make one payment each month that gets divided among your debts. This makes it easier to keep track of your progress and stay motivated.
Professional Guidance:
A debt counsellor will guide you through the whole process. They'll give you advice on managing your money better and help you understand your financial situation. It's like having a personal finance coach to support you.
Improved Credit Score:
While your credit score might go down at first when you enter debt review, in the long run, it can actually help improve your credit. As you consistently make payments and reduce your debt, your credit score will start to get better.
Peace of Mind:
Perhaps one of the most important benefits is the relief from stress. Knowing that you have a plan to deal with your debts and that you're protected from legal action can give you peace of mind and help you focus on other areas of your life.
The Debt Review Process: A Step-by-Step Guide
The debt review process involves several key steps:
Assessment:
First, you'll meet with a debt counsellor. They'll look at your income, expenses, and debts to see if you qualify for debt review. They'll ask you for information about your financial situation, so be prepared to share details about your income, expenses, and debts.
Application:
If the counsellor determines that you're over-indebted and debt review is right for you, they'll help you fill out an application. This officially starts the debt review process.
Notification:
The debt counsellor will then notify all your creditors that you've applied for debt review. This is when the legal protection starts – your creditors can't take action against you once they know you're in the debt review process.
Negotiation:
The debt counsellor will talk to your creditors and try to negotiate better terms for your debts. This might include lower interest rates or extended repayment periods.
Repayment Plan:
Based on these negotiations, the debt counsellor will create a new repayment plan for you. This plan will show how much you'll pay each month and how it will be divided among your debts.
Court Order:
The repayment plan needs to be approved by a court. Your debt counsellor will submit the plan to the court, and if it's approved, it becomes a legally binding agreement.
Monthly Payments:
Once the plan is approved, you'll start making your new, lower monthly payments. Usually, you'll pay one amount to a payment distribution agency, which will then pay your creditors for you.
Clearance Certificate:
When you've paid off all your debts under the debt review plan, you'll receive a clearance certificate. This shows that you've successfully completed the debt review process and are now debt-free!
Who Qualifies for Debt Review?
To qualify for debt review, you must meet certain criteria:
Over-indebted:
You must be struggling to pay your debts each month. If you can comfortably pay all your bills and debts, you probably won't qualify.
Regular Income:
You need to have some form of regular income. This could be a salary, pension, or other steady source of money. The debt review process relies on you being able to make regular payments.
South African Citizen or Permanent Resident:
Debt review is only available to South African citizens or people with permanent residency in South Africa.
Valid South African ID:
You'll need to provide a valid South African ID document as part of the application process.
Choosing the Right Debt Counsellor
Selecting a reputable and experienced debt counsellor is crucial for a successful debt review process. Here are some factors to consider:
Registration:
Make sure the debt counsellor is registered with the National Credit Regulator (NCR). You can check this on the NCR's website.
Experience:
Look for a counsellor with a good track record of helping people through debt review. Don't be afraid to ask how long they've been doing this work and how many clients they've helped.
Fees:
Understand what fees the counsellor charges. While there are standard fees for debt review, some counsellors might charge extra for certain services. Make sure you know exactly what you'll be paying.
Communication:
Choose a counsellor who explains things clearly and is easy to talk to. You'll be working closely with this person, so good communication is important.
Reviews:
Look for reviews or testimonials from other clients. This can give you an idea of what it's like to work with the counsellor.
Potential Drawbacks of Debt Review
While debt review offers significant benefits, it's essential to be aware of potential drawbacks:
Restricted Access to Credit:
While you're under debt review, you won't be able to take out new credit. This means no new loans, credit cards, or store accounts until you've completed the process.
Fees:
There are fees involved in debt review, including the debt counsellor's fee and legal fees. However, these are usually included in your repayment plan.
Lengthy Process:
Debt review isn't a quick fix. It can take several years to complete the process, depending on how much debt you have.
Impact on Credit Score:
Your credit score will be negatively affected when you enter debt review. However, it should improve as you make consistent payments and eventually clear your debts.
Making the Most of Debt Review
If you decide to pursue debt review, here are some tips for a successful journey:
Be Honest and Transparent:
Provide all the necessary information to your debt counsellor. The more they know about your situation, the better they can help you.
Stick to Your Repayment Plan:
Once your plan is set up, make your payments on time every month. This is crucial for the success of the debt review process.
Communicate with Your Debt Counsellor:
If your financial situation changes (good or bad), let your counsellor know. They might be able to adjust your plan if needed.
Develop a Budget:
Use this opportunity to learn better money management skills. Create a budget and stick to it to avoid future debt problems.
Seek Financial Education:
Many debt counsellors offer financial education programs. Take advantage of these to improve your money management skills for the long term.
Conclusion
Debt review can be a lifeline if you're drowning in debt. It offers a structured way to regain control of your finances and work towards a debt-free future. While it's not a quick or easy process, many people find that the benefits outweigh the drawbacks.
Asking for help with your debts isn't a sign of failure – it's a smart step towards taking control of your financial future. If you think debt review might be right for you, reach out to a registered debt counsellor to discuss your options.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Good News. TFSA Limit to Top $100K in 2025
TFSA | Oct 18, 2024
Image: Pixabay/Mohamed hassan
Canada's TFSA Limit Set to Surpass $100,000 in 2025 is Good News for Investors and Fintechs
The Tax-Free Savings Account (TFSA) is a popular choice for Canadians who want to save or invest money. The exciting update for 2025 is that the total contribution room will exceed $100,000 CAD for the first time since the TFSA started in 2009 to keep up with inflation.
- In 2024 (this year) the annual contribution limit will increase to $7,000. The limit was $6,500 in 2023.
- For those who have been eligible since the start but haven't contributed yet they could have up to $95,000 in total room by 2024.
- With more expected adjustments (i.e. inflation) in the future that amount is expected to go beyond $100,000 by 2025.
Why It Matters for Investors
The higher TFSA limit is important because it lets your investments grow without having to pay any taxes. Whether you keep cash, bonds, or stocks in your TFSA, any profits or interest earned are tax free, making it a great option for saving money and growing bank, especially when interest rates are high. For younger investors, this means there's more space to build their savings over the years without having to worry about taxes when they withdraw money or when their investments grow.
See: The CRA is Going After Day Traders Who Use Their TFSAs
With more room to contribute, investors have more options for how they invest their money. Here’s how they can take advantage of the higher limit:
- Use the full TFSA limit (if you can afford it, try not to stretch yourself too thin) to grow your investments tax free over time. Even low-risk options like bonds or GICs can earn more without taxes.
- The bigger limit allows you to maximize your growth and diversify your TFSA with a mix of Canadian and international stocks, bonds, digital assets and crypto, or even keep cash for more short term needs.
- A TFSA is great for building wealth over time. Investing in it for the long run can boost your savings, making it a valuable addition to registered accounts like RRSPs (retirement) and RESPs (education).
Opportunities for Fintechs
Digital investment platforms and robo-advisors are likely to benefit from the higher TFSA limits. As more Canadians aim to maximize their expanded TFSA space, fintech companies have an opportunity to attract new users by offering simple to setup TFSA accounts with lower fees.
See: AI’s Double-Edged Sword of Retail Investing
- Fintech companies can make it easier for users to start and manage their TFSAs with a simple sign up process easy to understand tools that show how much they can contribute and how much they might earn.
- One way to attract more customers to use TFSAs through digital investment platforms is by offering better interest rates or lower fees than the banks. This will resonate with investors looking to maximize their tax free growth.
- Many Canadians don’t fully use their TFSA benefits while others get fined for not following the TFSA contribution rules - see the CRAs TFSA Guide for Individuals for all the rules. Fintechs can step in to teach them how to make the most of their accounts by becoming a trusted source of education, advice and support.
Outlook
It’s a good time for Canadians to take a fresh look at their savings and investment plans. Whether you’re just starting out or have been using a TFSA for years, the higher contribution limit gives you more opportunities to grow your savings without paying taxes. For fintech companies, this change is also an opportunity to create new tools and services that help people make the most of their TFSAs, attracting more users in the process.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Court Approves $16.5 Billion FTX Repayment Plan
FTX | Oct 9, 2024
Image: Pixabay/BenjaminNelan
FTX’s $16.5 Billion Repayment Plan Likely to Boost Bitcoin's Price and Liquidity
FTX announced on October 7, 2024 that the United States Bankruptcy Court in Delaware has agreed to FTX's repayment plan of disbursing between $14.7 billion and $16.5 billion to creditors.
See: FTX Clients To Be Fully Reimbursed with Interest
While its a watershed moment for many in crypto, the size and volume of this repayment plan may have significant implications for Bitcoin's price and market liquidity.
John J. Ray III, CEO FTX:
"The Court's confirmation of our Plan is a significant milestone on our pathway to distributing cash to customers and creditors. Today's achievement is only possible because of the experience and tireless work of the team of professionals supporting this case, who have recovered billions of dollars by rebuilding FTX's books from the ground up and from there marshaling assets from around the globe. It also reflects the strong collaboration we have had with governments and agencies from around the world that share our goal of mitigating the wrongdoings of the FTX insiders."
- Amount Collected - Between $14.7 to 16.5 billion has been collected and will be given back to creditors.
- Repayment - 98% of FTX creditors are expected to get 119% of their allowable claims (includes interest) with the reimbursement to begin within 60 days of the plan's effective date (yet to be announced).
See: Caroline Ellison Sentenced 2 Years for Role in FTX Fraud
- Liquidity Surge - With billions of dollars potentially reentering crypto markets across more than 200 jurisdictions, this distribution will significantly boost market liquidity. Analysts believe that more than $2.4 billion could enter the market, driving up Bitcoin's value. Since the collapse of FTX in 2022, Bitcoin's price has increased from $16,000 to $63,000.
- Tax Concerns - Some creditors are concerned over the tax implications of getting cash payouts rather than in-kind cryptocurrency. The court backed the cash settlement option for practical reasons, with 94% of creditors supporting the payback arrangement.
John J. Ray III, CEO FTX:
"Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history. The estate is working to finalize arrangements to make distributions to creditors across more than 200 jurisdictions around the world. In preparation for this process, we are finalizing agreements to retain specialized agents to assist us in getting recoveries to customers around the world as safely and expeditiously as possible. I want to thank all customers and creditors of FTX for their patience throughout this process."
See: CSA Extends Deadline for Crypto Platforms’ VRCA Compliance
Outlook
While the implications of the repayment plan are not guaranteed, the ramifications for Bitcoin are quite clear. That is, more liquidity will likely result in higher prices.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Meta’s Real-Time Personal Financial Management Smart Glasses
AR Innovation | Sep 26, 2025
Image credit: Meta
Meta's Ray-Ban Smart Glasses Could Bring Real-Time Financial Analysis to Life
The market witnessed the latest innovative announcements at Meta Connect 2024 including updates that could change personal money management with new wearable and AI technologies. One of the most intriguing updates was that real-time, contextually relevant, financial insights are now possible thanks to Meta's glasses' AI and AR integrations. Imagine having your financial assistant there in front of you at all times: analyzing your purchases, suggesting better ways to invest, and even reminding you when payments are due instead of having to open up your banking or email app.
Newly Enhanced Features
Meta's Ray-Ban smart glasses have improved AI capabilities with real-time video streaming and recording, hands free reminders, and QR code scanning capabilities directly from the lenses. With more advanced cameras, microphones, and voice commands these smart glasses can also engage and interact with other connected devices. As smart eyewear continues to gain momentum, similar high-tech models can already be found through leading retailers that offer advanced options like Clearly glasses alongside other premium smart eyewear brands.
See: How PhD-Level AI Agents Will Change Financial Services
Cosmetically, the smart glasses appear similar to the classic Ray-Ban design, and with these kinds of improvements the next big consumer device may not be that far away. That's a big assumption though. The smart glasses must make every day living better or it will have adoption challenges with certain age brackets.
Ray-Ban’s Meta smart glasses will have real-time AI video processing, allowing you to ask questions about what the glasses can see. pic.twitter.com/KO0LlMvT3y
— TechCrunch (@TechCrunch) September 25, 2024
A Day in the Life with Meta’s New Smart Glasses
Meet Sarah, a young professional who uses Meta's smart glasses to help her handle her finances all day long.
As Sarah prepares breakfast in the morning, she takes a little moment to assess her financial situation. She can monitor her account balances and pending payments with a quick glimpse of her smart glasses. AI instantly calculates and organizes the money she spent the day before, pointing out any unusual transactions and recommending any changes to her budget.
See: Meta’s New Open-Source Llama 3.1 and LLM’s for Fintech
As she passes her favourite bakery/coffee shop on her way to work, Sarah's glasses show her how stopping at the shop would affect her entertainment budget for the week and to help her meet her monthly savings target, AI advises her to make coffee at work instead.
At work, the glasses subtly provide an update on her financial portfolio's performance. She uses a voice command to get real time analysis during her break. AI finds a new stock that fits her investment style and provides analysis and expert ratings along with a visual comparison to her current holdings.
Sarah's AI assistant informs her before she leaves for lunch which nearby restaurant would give her the most cashback on her credit card. While doing so, she receives a personalized recommendation to move excess money from her checking account to her investments to optimize her earnings which she can invoke with a visual swipe or voice commend to move funds from one virtual wallet to another.
After work, Sarah needs to buy a gift for a friend. The glasses show her how the purchase would impact her finances after scanning the price tag in real-time. Based on her credit history and rapidly assessing interest rates, the AI assistant suggests the most economical method of payment.
See: Google’s Vision for a Real-Time, Multimodal AI Assistant
Sarah receives a daily summary of her finances via her glasses before she goes to bed. This includes updates on her spending, changes to her investment and savings accounts, and a warning about an impending subscription charge. She can choose to postpone or cancel the subscription right from her glasses, allowing her to remain in control of her budget at all times.
Outlook
Meta's smart glasses are a paradigm shift for consumers, as personal financial management moves from passive to proactive with real-time AI decisioning support. These smart wearables can help people make better financial choices throughout the day, whether it's about budgeting, investing or making daily purchases.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI’s Double-Edged Sword of Retail Investing
Report | Sep 25, 2024
Image: Freepik, AI generated
OSC Research on AI and Retail Investing - Exploring Opportunities, Risks, and Scams
The Ontario Securities Commission (OSC) just dropped two reports about Artificial Intelligence and Retail Investing. The first report explores the 'Use Cases and Experimental Research', and the second report looks at 'Scams and Effective Countermeasures'. Below we share some takeaways of how AI is affecting individual investors on both sides of the equation, good and bad.
AI Use Cases in Retail Investing
While there are many emerging use cases of how AI is being used to enhance the retail investing experience, there are two main areas that people investing in stocks, bonds, ETFs, and other financial instruments without professional management are using new AI tools today.
The first is using AI as a decision support tool. Retail investors are using AI systems to analyze portfolios or the entire market to gain data-driven insights, guidance, and recommendations. Previously, access to this type of intel was either too complex or expensive for ordinary, smaller investors to use on a regular basis. An example of this is via self-directed investment platforms with AI chatbots or financial advisors that can evaluate an investor's objectives and compare them with their stock picks and/or portfolio.
See: A Look Inside 2024 DIY Investing Trends in Canada
The second main use case is trading automation, where retail investors can automate their investing decisions via robo-advisors or AI powered investment funds. This allows individual investors to manage their own portfolios efficiently and without the need for ongoing monitoring. These solutions are popular with ordinary investors because they basically provide low cost, lite touch portfolio management services without large advisory fees.
Select Risks and Challenges
The reports highlights a laundry list of risks for retail investors which is heightened due to the limited financial experience and resources available to them compared to institutional investors. Here are a few challenges to understand and mitigate.
If a retail investor has an investment advisor, they can always ask them a specific question and expect to receive a measured, qualified, and tailored response. This explainability and transparency is different than AI trading systems that often function as 'black boxes' where decision logic is hidden from review. Retail investors who become overly reliant on new AI tools without knowing how they actually work may find themselves in a risky situation. A biases AI model, for example, can lead to bad investing decisions.
See: Generative AI Myths That Founders Should Know
AI systems can have systemic risks like herding behaviour where AI pushes all retail investors to make the same choices because the AI model says so. Retail investors who may lack basic trading knowledge could be disproportionately affected by this, which may increase market volatility, especially during financial crises. Think of how many of us 'follow' google maps down unknown roads yet we can see a steady stream of cars that are also heading down the same unknown road. Did we ever stop and think is this a good decision?
The report highlights a challenge called 'Principal-Agent risk' which describes the danger of an AI tools being used by a larger firm that prioritizes their own profits over the best interests of individual retail investors (unknowingly of course). This could result in a conflict of interest where AI is in fact acting against the best interest of a client.
AI Scams Targeting Retail Investors
With the advancements of generative AI, scammers are creating more convincing phishing ploys, deepfake videos, and even fraudulent investment platforms specifically targeting retail investors. AI is helping fraudsters look more legitimate, making it harder to detect scammers, putting unsuspecting retail investors at risk because they often base their investing decisions from a social media influencer or public endorsement.
See: Can AI Truly Replace Human Financial Advisors?
AI supported Ponzi schemes where scammers advertise fake trading platforms or algorithms driven by AI that provide large profits at low risk. Retail investors are drawn to these schemes to generate quick profits but these platforms are often fraudulent, tricking investors who may never see their funds again.
Protecting Retail Investors
The reports suggests that retail investors can protect themselves from AI powered fraud and manipulation by increasing their financial literacy and knowledge of AI powered scams. According to the findings, prebunking (proactively prevent misinformation) and inoculation strategies can reduce the chance that a retail investor would fall for a specific fraud. that uses artificial intelligence.
Regulation. Measures that require more transparency and disclosures from AI platforms including a clear understanding of how the AI decision logic is being made and ensuring their are accountable for it.
Why This Matters
AI is already changing the retail investing landscape, so the OSC research findings are important especially for retail investors.
See: The AI Revolution in Wealth Management: Top 3 Innovations (and more)
While AI systems are enabling more access at a cheaper cost they also pose new dangers for every day investors. As the sophistication of AI continues to grow, there will be a disproportionate impact for vulernable retail investors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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A Look Inside 2024 DIY Investing Trends in Canada
Report | Release | Sep 6, 2024
Image: DIY Investing 2024 National Survey report (BCSC)
BCSC's 2024 DIY Investing Report Dives Into the Latest Trends and Demographic Shifts
The British Columbia Securities Commission (BCSC) recently commissioned the Innovate Research Group to compile the DIY Investing 2024 National Survey Report (131 page PDF) to better understand the latest trends and how do-it-yourself investors and social media are influencing the direction of retail investing. See the media release here.
1. Who Are DIY Investors? Changing Demographics
Over the past few years, the demographic profile of DIY investors has shifted. DIY investing is becoming increasingly popular among younger and tech-savvy Canadians.
See: ESMA Releases Statement on AI in Retail Investment Services
- Younger, More Diverse Investors - According to the research, men make up 75% of DIY investors and most of them are under 45 years old. With 38% of Canadians identifying as visible minorities, indicating an increasing tendency of younger people managing their own investments.
- There is an increase in "Hyper-engaged" DIY investors (23% of all DIY investors), who actively engage in trading and research on a daily basis. This segment has increased over prior years, confirming that younger generations are engaging more regularly and knowledgeable about trading than before.
2. The Increasing Influence of Social Media on Investment Decisions
Social media has become an increasingly important factor in investing decisions and trend is not slowing anytime soon.
- In 2022, 20% of DIY investors said they rely on social media to help with investing decisions. However, it increased to 24% in 2024, demonstrating the growing influence of websites like Reddit, TikTok, and YouTube now have on DIY investing decisions. This trend is being driven by younger Canadians, especially those between the ages of 18 and 34, who are increasingly dependent on online groups and influencers.
- Even though more people are using social media, DIY investors are becoming pickier and prefer to weigh the pros/cons fairly and are cautious over content featuring memes and commercial like pitches, indicating there may be some trust issues brewing despite being open and actively relying on social media.
3. Shifting Investment Goals. Moving Beyond Retirement Savings
While saving for retirement is still important, DIY investors are expanding their objectives and are looking for other benefits too, such as income and growth.
See: OSC Report: How Gamification Influences Retail Investors
- While 78% of investors still list retirement savings as their top motivation, DIY investors are now also looking for:
- Possibility of big profits (19%);
- Extra income generation (42%);
- Enjoyment (16%)
4. Financial Literacy and Risk Tolerance Has Increased
- Hyper-engaged do-it-yourself investors are more confident and have increased their financial literacy experience significantly, with 34% of them receiving high scores on these tests. As investor confidence grows with increased access to the internet and online resources, there's an increase in the propensity to take risks. This higher risk tolerance is a considerable shift given that in previous years the primary motivation for DIY investing was a more risk-adverse, cost-saving activity.
- Nearly 49% of Hyper-engaged investors are willing to take substantial risks, indicating a trend towards more active, high risk investment strategies.
5. Why Do Some DIY Investors Quit
See: Retail Investors to Drive Growth in Private Assets Under Management Expected to Reach $18.3 Trillion by 2027
DIY investors value the autonomy but the demands of keeping informed and actively managing their assets can wear them down over time.
- 21% of previous DIY investors quit due to time constraints
- 19% cited a lack of competence to manage their investments alone.
6. Persistent Distrust with Advisors
- A recurring among DIY investors is that they mistrust advisors.
- Further, 14% say they have little faith in financial institutions because they don't think the value is worth the price.
Outlook
As more Canadians (especially younger generations) seek ownership and more control over their investments, financial institutions must innovate and provide more digital tools to remain relevant. Hybrid models that combine DIY investing with professional support may emerge as a middle ground.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Do You Need Pet Insurance In Canada?
Sep 4, 2024
Image: Unsplash/Justin Veenema
Moving to Canada is a dream for many Americans. You have the chance to start a brand new chapter in a stunning country with great prospects. You can settle here with loved ones and pets, start a family, and maybe adopt an animal or two. But what happens when those pets need medical care? Sure, Canada is home to universal health care for humans, but not for pets. That's when you need to figure out the best pet insurance plan for your animals when moving to Canada.
Is Pet Insurance Mandatory In Canada?
No. Pet insurance isn't mandatory in Canada. You can move here with your pet or adopt here without having to sign up for a plan. With that said, pet insurance is advised because of the protection offered. If you bring a pet to Canada and they develop an illness, you want to be able to afford the treatment with ease. If you adopt a rescue, you might need that support for any injury care or long-term therapy. Consider the potential high costs of emergency care before deciding not to get a plan.
What Does Canadian Pet Insurance Cover?
There are lots of companies offering pet insurance in Canada right now, all promising to give you the best possible service to help you protect your pet. However, not all companies or plans are alike. Some are going to be affordable and appealingly user-friendly but may not offer everything you had your heart set on. Others will provide all that comprehensive care for different situations but with high premiums. You'll also have to consider the potential for add-ons and additional clauses. This is why it's so important to do your research and compare companies when choosing the best pet insurance provider online. Here are some examples of what you can look out for.
1) Accident coverage
This first option is the most simplistic and typically the most affordable. This one works out well for those who have a limited budget and just want to cover some coverage in case their pet gets into trouble somehow. Accident coverage tends to cover the medical care for any injuries sustained while under the plan. These could be accidents that were the pet's own fault, such as accidentally breaking or spraining a limb from jumping down too far or playing too rough, or accidents from other pets or road collisions. This coverage can also cover them swallowing things they shouldn't, which happens far more often than pet owners realize. This plan is a nice starting point, but it may not be enough on its own.
2) Illness coverage
You should also look into plans that include illness coverage. While accident coverage is more for injuries and unforeseen accidents, this is for more long-term medical care for physical illness. The right plan can provide support for regular treatments for a range of conditions. Pets that develop gastric issues, allergies, or diabetes should be able to benefit. The plan can provide help with the cost of their examinations, testing, and treatment plans. It may also help with any inpatient stays at veterinary hospitals. The downside to this is that many companies won't cover pre-existing illnesses. So, if your pet already has a chronic condition, you will have to pay more.
3) Comprehensive plans
Many companies will provide what they call comprehensive plans with unlimited coverage. Now, there's always going to be a limit and a catch with these plans. Nothing is even 100% unlimited, and you will have to deal with some high premiums to cover the costs. Still, those who demand the highest possible level of protection and have the budget for it can gain peace of mind with these plans for accidents, illnesses, and more.
4) Alternative therapies
Another benefit of comprehensive plans is the chance to add additional services to enhance the package. Again, this will increase the cost, so you have to be sure it's worth doing. Wellness plans can seem pointless if your pet is in good health and you're mainly worried about sudden illness or accidents. However, some brands offer impressive coverage for a series of holistic treatments. Holistic treatments are basically alternative solutions to care and illness management, such as hydrotherapy, acupuncture, massage, and chiropractic care. If any of these prove to be useful for your pet, especially a rescue, it's worth considering.
5) Additional benefits
Finally, don't forget that many of the top providers include clauses for more than just medical care. You may also have the option to claim in the event of a pet becoming lost or stolen. The plans could cover the costs of recovering your pet. You can also claim for any boarding costs should you or a family member end up in hospital. Factors like this are why it's always vital to read the full list of clauses to make sure a plan offers the value promised. Some affordable plans could surprise you, while other high-end options may not have everything you would expect.
Picking The Best Pet Insurance Provider
There is a lot to consider when choosing the perfect pet insurance plan and also the best provider for that coverage. Some companies stand out because of their lower rates or the range of options on offer. Yet, you still need to be sure they can offer the value for money and quality you expect. The best place to start is with customer reviews. Other pet owners will tell you exactly what they think of a provider. Either they loved the service and found it convenient to use in times of high stress, or they had a terrible time and switched to someone else. Look to see what they have to say about the company's customer service skills, the efficiency of payouts, and if they reward loyalty.
Once you find a company you believe is perfect for you and your pet, check out their plans and get in touch. Remember that any pet insurance in Canada is better than none, so get your pet covered today.
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