Looser Money, Plummeting Loons and #BestThisWeek

The Bank of Canada threw us all a knuckleball this week when they announced a quarter point drop of their key overnight rate (on Wednesday). The rate is now at 3/4% dropping a 1/4, and it seems the Bank assumes the economy needs even more stimulus.

The telling statement from their announcement is the final paragraph of their statement:

The oil price shock increases both downside risks to the inflation profile and financial stability risks. The Bank’s policy action is intended to provide insurance against these risks, support the sectoral adjustment needed to strengthen investment and growth, and bring the Canadian economy back to full capacity and inflation to target within the projection horizon.

Money RESP

Shrinking Money (never machine wash money)

This suggests that the very commodity reliant, Canadian economy is going to take a hoof in the “lower abdomen” thanks to plummeting oil prices. Lower inflation, but higher unemployment seems to be on the event horizon.

The Canadian dollar continues to plummet, thanks to very low oil prices, which may slow down the cross border shopping insanity that has been going on for the past little while. Maybe we shall see more of our American family dropping by in Canada this summer? Is this lower interest rate simply going to accelerate the drop of the Dollar’s value? Some experts feel this is going to cause a Canadian dollar back around the 70 cent level (compared to the US dollar), we shall see whether that comes to pass.

My Writings for Week Ending January 23rd

The cold of Ottawa in January constantly begs the question, why do we live here? :

  • I had another run at some of the Best Financial Tweets of the week. I thought I wasn’t going to be able to find many, but the real problem is, there are too many, and my Twitter feed is too large (I miss far too much).
  • I did finally get my money out of the TD RESP account for my daughter, but it took longer than I wanted and I highlight the issues I created by trying to use lower MER Mutual funds with TD E-series RESP Bear Trap.
  • How do you eat an elephant ? Here is an idea, don’t order the frigging elephant!!
  • RESPs are too hard for Mommies? My regular readers could spot the Swerve title, but I am just not too sure why I have seen so much mainstream media (TV) pushing this Giraffe & Friends RESP thing, and yes, Mrs. C8j was really quite insulted by the pitch.

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For those of you who may not have noticed, the Canadian Economy is hanging on the edge of a very big bust, with the price of Oil plummeting, there is a real chance that the Canadian economy is going to plotz. There are already ramifications with layoffs in Alberta, but the ripple effects will start being felt elsewhere very soon. It is going to be a very interesting “bust” in Canada, given the lower oil prices may kick the US Economy into hyperdrive, so we end up with neighbour economies going in opposite directions (at very high velocity). The interesting problems that may arise are on many levels

  • A quickly weakening Canadian Dollar means many imports are going to get very expensive (very quickly). The other side of that sword is Canadian exports (that are not commodity based) suddenly get cheaper (to the rest of the world).
  • American investments in your RRSPs will strengthen with the weakening dollar, but Canadian stocks may take a hit, due to the weakening economy.
  • Interest rates? Could go either way really, given imports will increase in price, but gas prices continuing to drop may offset.

Buckle up folks this is going to be a very rough (economic) ride ahead.

In Ottawa we have been having our standard bitter cold (not bitter cold like in Alert, but still cold), which means the Rideau Canal skateway is open, and driving is quite exciting with all of the black ice. Too bad it’s going to cost more to vacation down south this winter (again with the weakening Canadian Dollar).

Repeat Site note: If you feel so inclined my site now has a cert, so you can now read https://www.canajunfinances.com if you so choose. I am still knocking the kinks out of things, but it should work just fine for you.

My Writings for Week Ending January 16th

I turned 54 this week, life continues on, but I am 1 year closer to my retirement? Maybe (and more likely, maybe not):

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Frigid Temps, Plunging Oil, Paris and #BestThisWeek

The Winter has come to Ottawa, with frigid temperatures, that remind us that the concept of Global Warming is a bit of a misnomer, but climate change might be nice (a little warmer in January please). When your wheels freeze squared you know it is a cold day in Canada.

Thanks to a glut of oil on the market, gas prices continue to plummet to 20th Century levels. Here in Ottawa we have seen 88.6 cents per litre gasoline and there are rumors of even deeper price cuts coming very soon. This is not very good news for the Canadian economy, with many layoffs in the Oil Patches, and Oil related businesses. What is causing this? I really don’t know, but it is causing troubles for countries like Russia and Venezuela, I wonder if someone is trying to make this happen? Interesting political intrigue if that is the case.

Normally I wouldn’t write about the horrific events in Paris, but seeing as I am a member of the media (note the small m) I am appalled by the events. Je suis Charlie, has become the battle cry for those in France, and I am glad to see the outpouring from the Political Satirists around the world. When 12 people are murdered in this fashion, for the reasons put forward, it is simply an abomination.

Site note: If you feel so inclined my site now has a cert, so you can now read https://www.canajunfinances.com if you so choose. I am still knocking the kinks out of things, but it should work just fine for you.

My Writings for Week Ending January 9th

The raw cold reminds me why I love the summers so much, and how I should cherish those days:

  • Last week I wrote a quick note about Quicken and transferring Mutual Funds which really wasn’t about Quicken, it was more of a step by step on how to transfer I series Mutual Funds at TD to the much lower MER E-Series Funds
  • Happy Financial New Year is me again reminding you of the importance of starting the new year on the right foot (or left foot if you wish) and some of the things you should be thinking about.
  • Are the money media folks going into Financial Jargon Overload ? I think some of the TV outlets are way over the top, but most financial writers try to not overdo some of the more, shall we say, trite claptrap we here in other areas.

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Random Thoughts on 2014, Welcome to MMXV and #BestOf

As it is the end of the year, I figured I’d regurgitate a #Bestof list based on my regular Friday posts. No pontificating precursor with me rambling on about things barely financial, straight on to the exciting data from the past year.

My Top Read Posts for 2014

Surprisingly most of the most read posts I had this year, weren’t really written this year, which means either my writing has great staying power, or I wrote a lot of cods wallop this year (wonder which is more correct).


DrawingHands“. Licensed under Fair use via Wikipedia

The Customer retention script is easily my most read post ever, it even has a few nasty comments from folks on the other end of the phone. The RESP from Start to Spend got some actual media coverage which vaulted it into this list of posts.

Strangely my favorite post in terms of writing Fool Proof Market Timing System, didn’t cause a ripple, nor was it noticed by anyone, just goes to show I can’t tell what folks like or dislike.

Top Commenters for 2014

I must admit that sometimes I am quite perplexed that I don’t get more comments, given some of the more controversial statements I have made, but I will strive in the new year to make this more of a dialog, and less of a monologue with me pontificating my points of view.

The Dutchie

My Biggest Disappointement for 2014 , the Demise of the Dutchy at Tim Horton’s

My most commented posts were the giveaways this year (for Quicktax and such), however these were my most commented post:

  • Too Conservative Portfolio, which did ask a specific question, and it did cause a great deal of commentary
  • Key Financial Rules is me (again) ranting about borrowing and how it is far too common place these days.
  • Debt Won’t Just Disappear came from a rather animated Twitter discussion about the use of debt (some folks don’t take kindly to my negative commentaries, it seems).


Top Clicked Links from Fridays

Given the list I put out every week is quite extensive, it is interesting to see which of the links you liked to clicked the most. Yes, I do actually look at the “analytics” from this site and do tweak things on occasion on the basis of those numbers (not too much, I have to write what I want or it will read even dumber).

The most interesting entry on this list is the fact that the Canadian Capitalist’s post actually was 5 times more clicked than any other link I posted (other than a CRA link that is).

One Last Thing

I am going to try many new things this coming year including more video content (by me), but let us start with my son attacking me with his new helicopter.


The Best of 2014 The Canadian Personal Finance Place

Yes, it is that magical time of year, where I get lazy and rely on old content to make things look new, and the time that folks tend to publish their Top 10 lists, so here it is. I have limited this list for posts I wrote in 2014 as my most popular posts (as you will see in the coming days), were written a few years ago. Not a bad year for readership, pretty good for income on my part, and all of this after cutting my writing down to about 3 times a week, if I keep this up, maybe if I stop writing I’ll be hugely successful?

An interesting statistic is that in 2013 I had


visitors and this year I had


(so far) so basically the same number of visitors? Interesting stuff.

Enjoy this New Year’s Eve, remember you still have a little time to make a donation for this year for Charity or your RESPs, and don’t drink and drive either! I need all the readers I can get, stay safe.

Top Posts for 2014

Thanks to all my readers for coming back to read these.

Good Bye 2014 ?

Actually it is Good Bye 2014

RESP from Start to Spend

A useful discussion of the whole RESP experience that I have been living through (and plenty of regrets in hindsight, in terms of where I invested the money).

Ideal Portfolios?

Is there such a thing as an ideal portfolio? Kind of, but the ideal portfolio is the one that you are most comfortable owning (i.e. causes you the least stress).

Doubling Your Money

That title was a bit of an SEO dirty trick, but the rest of it did live up to the title. Doubling your money with very low interest rates is not easy (our parents had the 70’s and 80’s to help with their savings).

Disability Tax Credit: Please Do It Yourself

I really hope that this caused folks to do their disability application themselves, I would hate to think that those “companies” that specialize in getting you a disability credit (where they take a cut), are getting lots of customers.

Atrociously Dangerous Investment Advice

You can never go wrong quoting Rob Carrick, and then having Rob agree with you. The N.C.F.B.A. dinners can get quite raucous when spicy topics are added in.

Pensions and Spousal RRSPs

Are spousal RRSPs still a good investing idea? I think so.

“I’m an indexer. I don’t care what the indexes did today!”

This time I shamelessly stole a quote from Preet and got some good coverage around the Internet.

Free is a Good Price (but still can be expensive)

Thanks to the great Home Depot information loss of 2014, I ended up getting free Equifax, but the cost was kind of expensive (given hackers now have pretty much all of my financial info).

Here is hoping that 2015 I get a few more regular readers, and I keep up writing interesting topics.