Canadian Personal Finance Blog

I got a book out of the Ottawa Public Library a week or two ago, and I was very happy with it’s content. The book in question is: Smoke & Mirrors: Financial Myths that Will Ruin Your Retirement Dreams by David Trahair (CA).

The books subtitle is “Financial Myths That will Ruin Your Retirement Dreams”, and I was very impressed by the thoroughness and the passion of the arguments that Mr. Trahair puts in this book (and helpful CD with some useful spreadsheets to do calculations with). I discussed this book with other N.C.F.B.A. members and those that had read it were also impressed by the message put forward by Mr. Trahair.

Mr. Trahair’s book attempts to debunk the myths that are being pushed by the Financial Institutions and professionals that make money on our retirement planning.

The five major myths he addresses are:

1. 1. 1. 1. If you have a Million Dollars you can retire (or write a hit song ).
         2. RRSPs are the holy grail of retirement
         3. Don’t worry about your investments, you will be fine in the long run
         4. We have met the enemy and he is the Tax Collector
         5. Secure your financial future: buy life insurance

His arguments in these areas are quite compelling and I think I mostly agree with his questions about whether you can trust an “expert” that is making money from their own advice.

The rest of this good book outlines how to “Fight Back” and he outlines some excellent financial models and debunks the “Lease your Car” model and a few other interesting areas.

His major point of “Get out of Debt FIRST” is an excellent point and for that alone I think Mr. Trahair is on the right track with his ideas.

Overall Review

Excellent book, while I don’t necessarily agree with all of Mr. Trahair’s statements, I feel his arguments are very compeling to me, and he does not waiver on his message of “Pay off Your Debt FIRST!!!!”, and for that I am impressed.
I would highly recommend reading this book (I took it out of the Ottawa Public Library).

Carnivals

This weeks carnivals I have a post in:

Carnival of Debt Reduction - Gazelle Intense Edition has my Worst Financial Advice Ever Given post, as it’s lead post!

As I mentioned last week we purchased a new camera last week and didn’t get the extended warranty.

This past Friday (6 days after purchasing the camera),  I read the Future Shop flyer and saw that the same camera is now selling for $50.00 less. I tend to read the Future Shop and Best Buy flyers because I am a techno-geek and like to window shop for things I can’t afford (and know I shouldn’t buy), and this time it paid off very nicely.

I went off to Best Buy, and was my normal polite self, I had my bill with me from the previous Saturday and spoke to the young lady at the Customer Service (sic) desk (I also brought a copy of the Future Shop Ad for the camera). The young lady was very polite as well and then checked and Best Buy was in fact carrying my Camera (Canon S5 IS) for $50.00 less also, and because of this my account was credited for $56.50 (after tax rebates and such).

Well worth the trip, even though I most likely spent $4.00 worth of petroleum to get my money, but money well retrieved. Most electronics stores, and I believe most big box stores (aka Wal-Mart) have this kind of purchase protection plan and it is important to make sure you are not being over-charged and you are taking advantage of later sales on products you have purchased.

I am thinking now, I should have raised a mild stink and asked for more than $50.00 back, because the sales person at Best Buy should have known this camera was going to be on sale in the next few days, but I didn’t think of it at the time.

Extended Warranty?!?

As I stood in line I saw another interesting piece of consumer sleuthing that I feel it is important to report on as well.

A young lady was in front of me, and she had her iPOD touch with her, and there was some issue with it not working correctly. The young lady had her original box, and her extended warranty (which we said she paid $70 for (I believe)), and the Customer Service rep was very polite and said she’d have a look at it.

The Customer Service rep then told her something that caused my ear hear to prick up. Evidently if the Best Buy Customer rep couldn’t repair or make the iPOD work successfully, the young lady (customer) would have to send it to Apple, because it is within a year of purchase and Apple does all repairs in the first year.

Let that sink in, the customer has purchased an extended warranty from Best Buy, however, Apple’s warranty covers the exact same repair in the first year (presumably the first year of the extended warranty as well).

Read that previous sentence again, and tell me you didn’t at least have a “WTF” moment.

What is the use of this “Extended Warranty” if Apple repairs this and not Best Buy? The Customer Service rep in fact said, the customer must send the iPOD back to Apple, because Apple will not accept the iPOD if it is sent in by Best Buy. Another “WTF” moment for me.

So the extended warranty you purchase overlaps with Apple’s, and is effectively redundant (i.e. useless).

When I was growing up in Montreal I had my bicycle stolen straight out of my family’s garage, and I remember my Dad giving me some money to go get a new one. It was traumatic for me, since I had never had anything of my own stolen, and suddenly my bicycle (my only means of transport) was taken, it was quite upsetting.

From that day onward I closed any garage I was associated with and became a Nazi about locking doors and such, because I was worried about people taking my stuff.  I got insurance and worried about my stuff getting taken, so I was very careful with my stuff. I write this because there was a posting on a local board that I read about a bicycle being stolen from someone’s garage, and it brought back to me, and made me wonder what some people are thinking in my neighbourhood.

I go off to work and it seems like my neighbours leave their garages open all day long, how trusting can you get? I realize no one is going to run off with my snow blower (although anything is possible), but the bicycles in my garage aren’t cheap, and worse still, the door into my garage from my house is rarely locked, so thus it is an open door to my house.

Do I have enough home insurance? I really am not sure, I think I can replace my house, and I can replace many items in it, but I hope not to have to find out. I have been meaning to do a home inventory of the major items, so at least I would have a guess what might need replacing, but it is something that you procrastinate about because you don’t think it will happen to you.

Am I being paranoid? I invite my readers to comment on this, but I am always worried that someone might be wanting to take my stuff, and I take action to stop that.

RIP George Carlin

Way off topic, but still I must mention the passing of George Carlin. He was an influence on me growing up, I must have worn out my copy of “Class Clown” and his mistrust of “the system” in general still pervades my belief system. I did manage to see him live in the late 90’s in Vegas and I am saddened that he is no longer with us.

Happy St. Jean Baptiste Day

A mes amis Quebecois,  I wish you a joyeux Fete National and hope there are many choruses sung of Gens du Pays sung. Vive Le Quebec!