Archives for January 11, 2018

Couple Figured Out How to Stop Paying Rent and Now Saves $2,000 a Month

Dan and Tracy Kellermeyer made one change that let them fix their finances and live rent-free in five different states.

In the past year, Dan and Tracy Kellermeyer have lived in Colorado, Arizona, Texas, Oregon, and Las Vegas. While all that travel sounds expensive, the pair has managed not to spend a dime on housing costs.

“We came up with the idea that if we could string together back-to-back house-sits, then we could live rent- and utility-free and travel the U.S.,” says Dan. Now, the nomadic couple shares their housesitting experiences on their blog, Sitters on Tour.

Here’s how the couple got started as housesitting hustlers — and their advice for others looking to do the same.

When one door closed, another opened

Before they became digital nomads, Dan and Tracy rented a townhouse in the suburbs of Chicago. Dan had started working from home as a business analyst, but Tracy got laid off from her job as a program manager for a wellness company.

“That was a big turning point in our lives,” says Dan. “With the loss of her income, we started thinking outside the box.” Since Dan’s job was already location independent, they brainstormed ways to work and travel at the same time.

“We both loved to travel and started reading about how other people were traveling the U.S. and the world while working from home,” says Dan. “We still wanted to stay mindful of our budget, so we looked at other options and that’s when we found housesitting.”

Housesitters typically stay in someone’s home for weeks or months at a time. They’re responsible for taking care of the property, as well as caring for any pets that live there.

After working with their landlord to end their lease early, Dan and Tracy built their profile on TrustedHousesitters and House Sitters America. “Within a few months, we had our first four-month housesitting gig,” says Dan.

Since then, the couple has moved around the Western U.S., building their careers and saving money as they go.

Using their savings to pay off student loans

Although the costs of moving so frequently would usually add up, Dan and Tracy actually save thousands per month as housesitters. In fact, Dan estimates their full-time housesitting saves the pair over $24,000 per year.

So what are they doing with all the extra savings? “We initially decided to take all the money we saved by not paying rent and use it to pay off our student loans faster,” says Dan. “We both still have about $100,000 in student loans combined.”

Dan owes about $60,000 in undergraduate loans after attending Purdue University, and Tracy has about $40,000 from the University of Wisconsin. After graduating, they refinanced their federal loans to lower their monthly payments.

Today, though, Dan and Tracy’s priorities have shifted away from paying off their debt as fast as possible. While they still make minimum payments, their current focus is investing in their careers.

Building their careers as digital nomads

Now that Dan and Tracy aren’t tied to one city, they’re taking advantage of their new lifestyle and building their dream careers.

“After five or six months, we realized that this lifestyle could also allow us to pursue careers that were more fulfilling to us,” says Dan. “I ended up leaving my full-time job to focus on building my financial planning practice.”

Dan founded New Heights Financial Planning, where he works as a financial planner with clients all over the country. He provides virtual consulting on living a location-independent lifestyle.

He also founded New Heights Solutions, which mainly provides virtual assistant services to financial planners. Tracy, meanwhile, now works as a “taskmaster” with the company, providing online administrative support to its various clients.

Plus, both Dan and Tracy are building out their blog, crafting guides on housesitting, travel, and adopting a minimalist lifestyle.

To grow their various businesses, Dan and Tracy prefer long-term housesitting arrangements over short-term ones. “People wonder if we are on vacation all the time, but we still work normal work hours,” says Dan. “[It] just happens to be from a new city every few months!”

Building up an emergency fund is key

Starting any new business is risky, especially if you’re doing it from the road. To protect themselves, Dan and Tracy save money in an emergency fund. “A solid emergency fund is a must for anyone setting out on a nomadic lifestyle,” says Dan.

Not only is an emergency fund essential if you lose your income, but it’s useful if a housesitting gig goes south. In Phoenix, for instance, Dan and Tracy found themselves in a prickly situation.

“The homeowners moved to a different house in the middle of our three-month sit and we found seven scorpions during our stay in the new house,” says Dan. Though the couple did fulfill their contract and finish the job, they were comforted knowing they could have quit early thanks to their savings.

Since a location-independent lifestyle can be unpredictable, preparing for random expenses is key. Build a three- to six-month emergency fund to help you be ready for whatever comes your way.

Do your research before you hit the road

Apart from their scorpion encounter, Dan and Tracy have had mostly positive experiences as housesitters. Their favorite stay was at a ranch in Durango, Colorado, where they watched 13 barn cats and spent the winter skiing.

To ensure a safe and comfortable experience, the couple recommends drawing up a contract with the homeowner. Make sure you outline the terms of the agreement, including the address and dates of your stay, along with who is responsible for paying for utilities.

“Most pets and people are great, but you do have to do more due diligence so you don’t get into a negative situation,” says Dan. While Dan and Tracy accept long-term assignments, they also recommend housesitting for shorter trips.

“Housesitting can be a great way to vacation, even if you aren’t looking to do it full time,” says Dan. “If you want to spend the holidays somewhere new, you might look for a housesitting gig for a week or two.”

Whatever your goals, you can find ways to cut back costs and save money. “There are so many different ways to live a nomadic lifestyle, and each one has its quirks,” says Dan. “Do your research and connect with other people living the lifestyle before you set out on your own journey.”

Nova Scotia to Dramatically Expand, Subsidize Child Care After $35M Federal Deal

Nova Scotia to dramatically expand, subsidize child care after $35M federal deal

HALIFAX — Nova Scotia says it will create more than 100 new child care sites and boost subsidies for families under a $35 million deal with Ottawa that aims to make care more accessible and affordable in the province.

During a ceremony at a suburban Halifax child care centre on Wednesday, Nova Scotia became the sixth province or territory to sign on to an agreement reached in June known as the Multilateral Learning and Child Care Framework.

“Today’s agreement is a big step towards making sure that Nova Scotian children get the best start in life and that parents can succeed in the workplace,” said Jean-Yves Duclos, federal minister of families, children and social development.

“That’s particularly important for mothers. If we are serious about gender equity we also need to be serious about child care.”

Funding in the three-year deal is to create 15 new regulated child care centres and 90 new home-based child care sites across the province. Education Minister Zach Churchill said in total the new sites would serve about “1,000 students.”

He said the money would also be used to boost subsidies for 675 more children with families making between $35,000 and $70,000 a year.

Churchill said the funding could see the province subsidize up to 75 per cent of the cost of a space per child.

“The cost per family is approximately between $8,000 and $10,000 per child per year,” said Churchill. “We do subsidize those spaces already and with this additional subsidy that will bring the cost for those families down to between $2,500 and $3,000 if they are at $35,000 household income.”

According to the province, the average cost of infant child care is $10,660 per year.

“Our hope is that by addressing the affordability barrier to child care we will see more families use it,” Churchill said. “But a greater challenge here is also space and where it’s available, so this is also about expanding these critical centres to areas of the province that currently don’t have them.”

Premier Stephen McNeil said a portion of the funding could be added to the current budget, and the rest spent over the next two fiscal years on top of the $53 million that has been allotted by the province.

“The investments that we are making … will pay huge dividends not only for those children but for the economic health of this province,” said McNeil.

Neither Churchill or McNeil were able to say exactly where the new money would be spent.

A government spokeswoman later sent an emailed clarification saying details would be released at a later date.

“Results of the early years consultation will be released shortly and that will inform the strategic growth plan for the province. That plan will also be released shortly and will identify the areas of the province where new space will be developed.”

In addition to Nova Scotia, Ottawa’s funding framework has so far been signed by Newfoundland and Labrador, P.E.I., New Brunswick, Ontario and Nunavut.

Graphene-Based Wearable Could Help Save Babies From ‘Crib Death’

Graphene, a versatile material composed of a single layer of carbon atoms arranged in an hexagonal lattice, can do everything from making superior speakers to detecting cancer cells to creating ultrastrong shields. Its latest feat? Forming a smart sensor which could be used as an early warning system to help keep babies safe from sudden infant death syndrome (SIDS), aka “crib death,” the unexpected and unexplained death of an apparently healthy baby.

Developed by researchers at the United Kingdom’s University of Sussex, the smart sensor is composed of a length of flexible rubber tube, filled with water, oil, and graphene particles. The device is able to detect changes including the rising and falling of a person’s chest, potentially to lifesaving effect.

“Normally what happens when you mix oil and water together is that they separate out; think about shaking a hot lava lamp,” lead researcher Dr. Matthew Large told Digital Trends. “Eventually all the small droplets you create collect together, because oil and water don’t like being in contact with each other. What we have done is put graphene at the interface between those two liquids, which both liquids are more happy to be in contact with. This has two effects: It stops the droplets from merging, so the liquids can’t separate, and it makes the bubbles conductive to electricity.

“It is that last point that has allowed us to develop a liquid sensor that can detect stretching; electrons can hop between the graphene sheets, but when we stretch the bubbles this becomes much more difficult. We detect that change in electrical current and can relate it to the strain on the sensor.”

babies crib death graphene and wearable assembly moment

Spurred on by the Global Challenges put forward by the Gates Foundation, the team hopes that this relatively simple solution could be used to create a low-cost, wearable health monitor technology. In particular, they think it could be useful as an early warning system for parents if their baby’s breathing or heart rate changes dramatically — allowing them to seek help as quickly as possible. It could also be used for older patients in a hospital setting.

“We are working alongside an industrial partner, Advanced Material Development, to evolve our prototypes into a marketable product,” Large said. “Then we will be looking to talk to equipment manufacturers about production. We are anticipating having something marketable within four years.”

Mark Zuckerberg Has Already Made $4 Billion in 2018

He’s now the 4th-richest person in the world.

The new year is off to a great start for America’s billionaires.

Major market indices are up 2% year-to-date, continuing the major stock gains of last year.

Among those profiting from the continued stock surge is Facebook CEO Mark Zuckerberg. The 33-year-old has earned $4.16 billion since 2018 began, with company shares climbing more than 5%.

That’s been enough to vault Zuckerberg from 5th to 4th on Bloomberg‘s billionaires list (where he’s been as recently as 2016). He’s now worth nearly $77 billion.

Yet, in a Facebook post last week, Zuckerberg seemed to express concern about his company’s status.

“With the rise of a small number of big tech companies—and governments using technology to watch their citizens—many people now believe technology only centralizes power rather than decentralizes it,” he wrote. He added he also hopes to better enforce Facebook’s posting policies and reduce abuse.

Meanwhile, Amazon CEO Jeff Bezos—who has gained the most so far this year—is still the richest person on Bloomberg‘s billionaires list. He’s earned $4.71 billion since Jan. 2 and is now worth $104 billion.

The top 5 wealthiest people according to Bloomberg are now as follows:

  1. Jeff Bezos: $104 billion
  2. Bill Gates: $93.3 billion
  3. Warren Buffett: $86.4 billion
  4. Mark Zuckerberg: $76.9 billion
  5. Amancio Ortega: $76.7 billion

In total, the 7 wealthiest Americans have earned more than $17 billion so far this year. The top 25 wealthiest Americans on Bloomberg‘s list now account for more than 1% of all household wealth in the U.S., according to MONEY‘s calculations.

Should Suncor Energy Inc. Be on Your Buy List Today?

oil, petroleum, refinery

Oil prices continue to drift higher, and investors are wondering which names in the energy patch might make good additions to their portfolios.

Let’s take a look at Suncor Energy Inc. (TSX:SU)(NYSE:SU) to see if it is an attractive pick today.

Diversified business line

Suncor is primarily known for its oil sands operations, but the company also owns refineries and more than 1,500 Petro-Canada service stations.

The downstream assets balance out the revenue stream and have served as a nice hedge during the downturn.

Lower oil input costs can result in improved margins for the refining operations, especially when the price spread between WTI and Brent increases.

On the retail side, falling oil prices generally translate into lower prices for transport fuel. As a result, people tend to drive more, and that means additional trips to the gas station.

The integrated nature of Suncor’s businesses is a big reason the stock has held up so well in the past three years. In fact, Suncor currently trades higher than it did when WTI oil was above US$100 per barrel.

Growth

WTI oil currently trades at US$61.50 per barrel, up from about US$43 in June. The timing of the recovery is perfect for Suncor, as the company is ramping up production at new facilities.

The Fort Hills oil sands project, which is majority owned by Suncor, is now complete and should be at 90% of production capacity by the end of 2018.

In addition, Suncor’s Hebron offshore project began production in November.

Efficiency gains

Management has done a good job of reducing costs in recent years. The company reported Q3 2017 oil sands cash operating costs of $21.60 per barrel. This was the lowest cost structure the company has seen in more than a decade.

Dividends

Suncor isn’t widely viewed as a dividend play, but the company has a strong track record of raising the payout, and that trend is expected to continue.

At the time of writing, the quarterly payout of $0.32 per share provides a yield of 2.7%.

Should you buy?

Opinions remain split on where oil is headed.

The oil bulls say OPEC appears committed to its goal of reducing oil supplies by 1.8 million barrels per day, while global demand remains strong.

Oil bears say the rally since June is just a head fake before another downturn, as U.S. oil production continues to rise and could hit a record in 2018. This might provide a strong headwind to any further gains in oil prices.

If you like oil as a long-term play, but are concerned about additional volatility in the near term, Suncor is an attractive way to play the sector. The integrated business lines provide a balanced revenue stream and a hedge against another dip. In the event oil?s recovery continues, Suncor should benefit from a broad-based tailwind in the energy sector.

As always, it’s anyone’s guess what the future holds.

Who’s going to fly the plane? Pilot shortage could get worse for regional carriers

New federal rules around pilot fatigue could increase problem

Flight schools are struggling to keep instructors as some airlines are desperate to hire pilots.

A pilot shortage across Canada is causing some regional carriers to cancel flights, put less experienced pilots in the cockpit and has even had an impact on some air ambulance services.

A combination of factors is causing the shortage — ever-increasing air travel by Canadians, a shortage around the world and a large number of pilots reaching retirement.

A soon-to-be released report by the Canadian Council for Aviation and Aerospace says Canada should be producing an extra 300 pilots a year to meet demand of a growing air travel industry.

Furthermore, the report warns demand for new hires for expansion and replacement of retirees could mean a shortfall of 6,000 pilots by 2036.

“Having fewer and fewer pilots to draw from, sooner or later the operators are going to have to start cutting routes,” said Mike Doiron, an aviation consultant and CCAA representative.

“Those seats are going to be sold at a premium because you will have more people wanting those seats, so the end result is the cost of flying, I would suggest, is inevitably going to go up.”

Some in the industry say flight schools should be producing twice as many pilots to meet demand.

New federal rules around pilot fatigue could make the problem worse as airlines may have to hire substantially more pilots to maintain current flight schedules, industry representatives and observers say.

The shortage is hitting regional carriers harder because the national airlines have an easier time hiring pilots. Most pilots aspire to fly their large jets, which travel faster and at higher altitudes, and the compensation scale is more lucrative in the later stages of a career.

Pilots at Thunder Bay-based Bearskin Airlines traditionally fly for the company for two or three years before moving on to work at larger airlines. These days, they usually only stay for six months before they’re scooped up.

March 2017 was a particularly bad month for Bearskin as 10 of its 50 pilots on staff were plucked by national airlines, Bearskin admits it’s losing pilots at a “crazy rate” and turnover is not improving.

“It tightens up our scheduling, it means we pay overtime,” said Trevor Gavinchuk, a pilot and director of flight operations with Bearskin. “The rest of the pilots pick up the slack that month or two it takes to get people trained.”
So far, the airline has not had to cancel flights, but it’s a real possibility in the future.

‘Constant recruitment’

“It has gotten worse in the last five years,” said Gavinchuk. “It’s constant recruitment.”

Bearskin isn’t alone as airlines across Canada drop their experience requirements for new pilots and spend more money on recruitment and training. Its new pilots now must have 750 flying hours instead of 1,000.

Over the last 10 years, air passenger travel in Canada has grown by 3.6 per cent on average, according to Transport Canada.

In the face of the pilot shortage, some airlines haven’t been able to avoid grounding flights.

Mississauga, Ont.-based Air Georgian, which operates under the Air Canada Express banner, has had to cancel flights because of the pilot shortage, When there are cancellations because of poor weather, the airline struggles to catch up since there aren’t fresh crews available to call in.

“With every airline hiring right now, there is a lot of competition out there,” said Troy Stephens, vice-president of flight operations at Air Georgian.

Not only is there competition for pilots in Canada with air travel expanding in the country, but international airlines are also looking to hire Canadian pilots.

“The competition never used to be like it is all around the world. You have Amazon buying Airbuses, Vietnam putting in crazy orders, the Middle East buying hundreds,” said Stephens. “They’re paying big dollars to get our pilots who speak English and have experience.”

A few decades ago, those in the industry say pilots needed upwards of 5,000 flying hours before a national airline would consider hiring them. Now the threshold is substantially lower. Recent job postings at WestJet Encore, for instance, only required 1,000 hours.

WestJet and Air Canada declined interview requests.

In a statement, WestJet said it is hiring “as we always have been.”

Air Canada receives “thousands of applications far exceeding vacancies in every round of pilot hiring,” it said in a statement. Its pilots must have a minimum of 2,000 to 3,000 hours of flying time.

Plight of flight schools

Flight schools are feeling the pinch as airlines hire away their instructors and find that replacing them is difficult.
Three weeks after Medicine Hat, Alta.-based Super T aviation posted an instructor position opening on an industry job board, there were no responses. Owner Terri Super says airlines can’t keep hiring instructors or else the industry could implode.

“They just can’t continue to take everybody and leave no one behind with any experience or depth to teach the next generation. We just can’t do it,” said Super.

Flight schools are struggling to keep instructors as some airlines are desperate to hire pilots.

‘They just can’t continue to take everybody and leave no one behind with any experience or depth to teach the next generation,’ says Terri Super, owner of Super T Aviation, about airlines hiring instructors away from flight schools. (Kyle Bakx/CBC)
Canada likely produced about 1,000 pilots in 2017, by her count, although half of them are international students who often don’t stay after graduation.
“The airlines have projections to take over 1,200 [pilots]. So right there is a deficit,” she said.
“The airlines can’t get the quality and experienced people they want, so they take from the smaller operators, so now the smaller operators don’t have experienced people they can keep, so the industry takes from the flight training industry which means there are no flight instructors to train the upcoming commercial pilots,” she said.

She says the experience level of instructors and pilots gets watered down. While Super doesn’t have safety concerns, she knows of at least one regional carrier that has strict restrictions on its pilots to compensate for their inexperience. If there is any type of bad weather, the flight is cancelled.

‘Cancelled flights’

“It ends up affecting the flying public,” said Super. “They have a lot of cancelled flights.”

In 2016, less than 1,200 commercial pilot licences were issued, a drop of 28 per cent from the 2009 peak of 1,645, according to the CCAA.

The medevac industry has not escaped the impacts of the shortage. Ornge, which provides emergency and urgent patient transportation services in Ontario, has occasionally had to ground some of its planes and rely on slower types of transportation such as helicopters and ground ambulances.

Ornge will use helicopters and land ambulances if one of its planes is grounded because of a pilot shortage.

“Have their been some delays? Yes, but we’ve never been in a situation where we’re simultaneously out of service across the province. We’re fortunate to be able to cover everything,” said Rob Giguere, a pilot and executive with Ornge.

Ornge also relies on private contractors when it is short of pilots to fly their own airplanes.

New rules

Canada’s pilot shortage could become worse because of proposed federal guidelines around pilot fatigue.
Transport Minister Marc Garneau has said Canadian travellers have the right to expect their pilots to be in good physical and mental shape while on the job.

However, the airline industry says those guidelines are unnecessary and would force carriers to hire upwards of 30 per cent more pilots to maintain current service levels.

“Basically, [it would be] increasing the pilot shortage dramatically,” said John McKenna, president of the Air Transport Association of Canada. “So we’re saying, how is that going to improve safety?”

Some carriers could cut routes to some regional airports because of the added expenses.

“If there is a shortage of pilots, there are fewer planes flying. Fewer planes means fewer routes,” said McKenna.
“It has a major impact mostly on the smaller communities because they are served by regional carriers and they are feeling the pinch more than the larger carriers are.”