Canadian Personal Finance Blog

Archive for February, 2009

In recent memory the major get rich scheme that helped sculpt the Canadian frontier was the Klondike Gold Rush, and the National Film Board again comes through with an excellent movie outlining this event, called the City of Gold.

For my American readers this is similar to the California gold rush, however it is in the North of Canada in Dawson City, and this film outlines the problems endured to try to “Get Rich Quick!”.

In today’s Get Rich Quick schemes, at least you don’t have to trek through snow and fight Grizzly bears, but are they as likely to make us money?

With Lent beginning, tax season roaring into view and the RRSP season coming soon to an end some very interesting posts were done this week, for the end of February.

• Larry MacDonald wrote an excellent article for the print Globe and Mail where my comments were included A Relief Valve for RRSP Holders. I was very happy to see they included a picture of my son’s bum as well.
• The Canadian Capitalist advises us to Keep Faith in Buy and Hold, which I think is important to remember, even with recent fluctuations.
• Michael James points out that It’s Different This Time, or is it? I’ll tell you in a few years, since we never know until it happens.
• Preet asks the interesting question How are the Pros Investing Their Money  (ok he quotes the Wall Street Journal). Preet was also mentioned in Larry’s G&M article as well, and is always and interesting read.
• Gail Vaz Oxlade talks about an important topic for me Starting an Allowance for kids, something kids need to learn about.
• Ellen Roseman asks a pointed question Can You Trust Your Financial Adviser ?  
• Nancy Zimmerman shares Here is What I am doing with my RRSP. What Are you Doing with Yours? She thinks it is a buyers market, but my question is, are we at the bottom?

Have a great weekend all, and watch for the Ultimate Canadian Get Rich Quick scheme video.

I am hoping to have a first hack at my taxes done very soon, however, as usual my former employer will only send me T4 (and now T4A and others) at the END of February (if not later, given it’s current fiscal state, I would not be surprised if it arrived very “en retard”). This means I am unable to try to purchase RRSP’s to compensate or lower my taxes (if I had any room, as I mention in the Globe and Mail). I guess if I don’t get the forms in time, I can just guess and submit the numbers, but I assume they will arrive some time soon.

I know that QuickTax offers an RRSP scenario tool, but I have never used it, has anyone else? It supposed to show the advantages of buying RRSPs in February and their impact on your income tax owing. I may use that tool one day, but not this time around.

More Money in Government

Stats Canada published an interesting report on 2009 Public and Private Spending estimates.

While public sector capital spending is expected to increase 9.5%, private sector investment is anticipated to fall by 13.1%, mainly due to the mining and oil and gas extraction industry.

This says loudly the one growth industry in the next year, is the Government. Those of us looking for jobs, might want to look at the Public Sector, since it looks like they may be hiring.

And I thought I had Investment Issues

CTV is reporting that:

The Caisse de dépôt et placement du Québec will face intensified scrutiny in special government hearings into the investing strategies and risk management practices that led to its stunning $39.8-billion loss.

Holy cow! This is the biggest pension fund management group in Canada and they managed to blow that kind of money investing? Wow! Evidently the Quebec government is investigating bringing in a new management team, might not be a bad idea.

RRSP deadline is March 2nd. Complete your taxes with QuickTax before the deadline.

EI Claims Climbing

Stats Canada rolled out some interesting information about EI (employment insurance) claims yesterday:

In December, 538,200 Canadians received regular Employment Insurance (EI) benefits, up 25,000 or 4.9% from November, after seasonal adjustment.

The number of Canadians receiving regular EI benefits rose by 79,100 between December 2007 and December 2008, a 16.6% increase. The number of men receiving benefits went up 21.7% while for women the number increased by 8.6%

So in 1 month the number of claimants jumps by almost 5% and year over year it just almost 17%, which is very worrisome (especially for those of us unemployed). Given the period for claiming EI has been extended, this might mean a larger drain on the EI fund, which has previously been a “cash cow” for the government to draw from.

TSX a Bargoon?

If you are looking at buying into the market is now the time to dive in? Not sure what part of the index you might buy, or maybe buy the whole thing in an Index Fund (or maybe an ETF too?).

Don’t know, but here is an interesting graph to look at:

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Neat eh? Easy to see that we are back to 2002 (like I mentioned yesterday). Just something else to keep in mind.

R-r-roll Up The Rim and Buy?

Tim Horton’s was always an interesting investment idea, but I still can’t see growth, but every year when the Roll Up the Rim to win season rolls in I see the herds of Canadians buying their coffee at the Mecca for Cheap Java North of the Border.

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Will I be buying Tim Horton’s stock? No, I think I am moving away from investing directly in stocks and moving back to a more passive investing technique.

Happy Ash Wednesday

Lent has begun folks, and now is the time to start your Lenten Financial journey, and to maybe drop by your Church and enjoy their Ash Wednesday service as well.

Your journey begins today.

Shrove Tuesday is here, Lent begins tomorrow and you need to have your Shrove together. 

The word shrove is the past tense of the English verb shrive, which means to obtain absolution for one’s sins by way of Confession and doing penance.  (according to Wikipedia)

In my house it means going to Church for a traditional pancake dinner with bacon and ham to celebrate the beginning of Lent (and the Easter Season).

Mrs. Caj points out that it is time to cut out the FAT in your life, that is what Fat Tuesday is about, getting the FAT out of your life for Lent.  Get the FAT out of your Personal Finances as well.

Financial Mardi Gras

No, I am not saying let’s all go out blow all our money before we start our Lenten Financial journey. If anything I am saying, maybe have a quiet night relax and plan out what you are going to do over Lent to make your financial situation better. 

Other News: Bargains in the Market?

Is this the bottom of the markets? Is the stock market going to start a Lenten recovery? Not sure but the US S&P 500 is at it’s lowest level since 1997 and the TSX is at 2004 levels too, so maybe the market is at a Bargain price, but then again, I can’t tell you it’s at the bottom (but call me in 6 months and I can say for sure). I can say that 6 months ago, wasn’t the bottom.