No I Can’t Do Anything About That

That is a direct quote from a TD representative when I asked if anything could be done about the interest rate on my Unsecured Line of Credit.

For the longest of times, this Unsecured Line of Credit was “Prime + 1.5%”, but about 2 years ago, it was raised to “Prime + 2.0%”, which while annoying, was something I could live with, however, about six months ago I got a terse piece of Snail Mail announcing, “Yeh, it will be Prime + 3.0%. I was quite irked by this (as a customer of TD), and decided the next time I was in the Bank (say to cash in an RESP) I would ask about this.

The Answer

The Answer is Always No, if you don’t ask

In the interim, my daughter got her Student Line of Credit from CIBC, which I co-signed, and she got that at Prime, so I figured I’d bring the documentation with me (to TD)  to see if I could motivate my friendly TD rep to do something about my unsecured line of credit rate.  This is where the title of this post came in to play.

First I was easily able to cash out my daughter’s RESP (as I had move all E-series Index Funds into the Money Market fund, won’t get fooled twice on that one), in a relatively quick few minutes. I then had to have my “investing profile” updated to allow me to do what I wanted in another account, again done quite quickly as the rep simply cloned the last time I did this update.

At this point I brought up my Unsecured Line of Credit and the high interest rate (in my opinion) and the fact that I have good enough credit to co-sign a loan for prime only, and the answer was short and to the point:

“No, that is an unsecured line of credit and I cannot lower that rate.”

I asked if there was any chance to discuss it, and was dismissed with, “Your Daughter has a professional line of credit loan, not the same thing, we can’t do anything for you”.  I believe I also asked if anybody else could help, but was told No. Now I have said previously, The Answer is Always No, unless you ask, but evidently it can be No even if you do ask.

If I remember the happy young lady at the CIBC, when she gave us the details about my daughter’s student line of credit, told me that an unsecured line of credit rate for me would have an interest rate depending on my credit rating and how much debt I carry, but she’d gladly check it out for me if I wanted her to do that. I guess I’ll be going to visit CIBC in the near future.


Finance and Gen Y

Someone asked me, “What Gen Y has brought to the table?”.

My first response was: “No World Wars good, Pay Day Loans bad, but #ADDSociety is major thing”, which translates to they haven’t had a world war (yet), however, on their watch Pay Day Loans have exploded as a concept and it seems all of society has Attention Deficit Disorder (apologies to those suffering from ADD, I do not mean to ridicule you (in specific) all of society is like that).

Generation Y

Gen Y ?

The excuses I continually get from Gen Y in specific and Gen Y wannabes is:

  • It’s too complicated so I didn’t read it
  • I have too many messages so I ignored it
  • I can only read while driving, texting, drinking coffee, watching TV and shaving
  • I can’t get anything done unless I am Multi-tasking  (when in fact it just means doing a whole bunch of things at the same time, badly)
  • Yes I do sound like a crotchety old man

I think Gen Y is going to have to deal with a very nasty time bomb as they age, namely Boomers retiring and Gen Y having to support the aging “Greatest Generation Ever” (keeping their pensions afloat, as they live longer and longer). There is going to need to be a “paradigm shift” in how all this works, because it is pretty clear that all pensions (public and private) are in trouble, and barring a horrific plague there are going to be too many people trying to live on too little money (I may be proven wrong, but I doubt it).

Will Gen Y (in most western nations) never see the Inflation and High Interest rates that I grew up with? I don’t know, it really does seem that the days of Canada Savings Bonds with 19% interest rates are long gone (1981 I do believe was the last year with that).

Remember that the Boomers (and their parents to a lesser extent) are really the first generations that has ever had the chance to retire (folks died before retiring previously), will the following generations be able to do this? That remains to be seen.



Google Made You an Expert Investor ?

For the past little while there has been a determined group of folks who believe they are the next Woodward & Bernstein (read All the President’s Men to understand the reference) and if they can find something on Google or even Bing, it must be the gospel truth and thus they can base their entire lives on the basis of these findings.

Specifically the naive folks who believe that Vaccines are simply a scheme by large multinationals to make a fortune and poison our children, thus leading to the new outbreaks of Measles, and other interesting diseases (that were mostly gone from most of the world). I will simply comment that any individual wishes to argue with me that having my son Vaccinated caused him to be on the Autism spectrum, Bring it On, you are wrong.

However, this is not what I am writing about today (I could write far too much about the previous paragraph), I am writing about folks that feel that with a little bit of research they can become experts about investing. Yes, you should do plenty of research on whatever investing scheme you wish, however, this does not make you an expert. Just because I can watch a Youtube video on how to fix the rotors and brakes on my car, that does not make me a mechanic!

The people I know that have become good investors, took a while to figure out how to do it, and some folks (like me) ended up deciding that maybe we should use the simplest methods for investing and not try to “beat the market” (every time I have tried to beat the market, I ended up being the ball (not the Louisville slugger)).


Sometimes You Are the Louisville Slugger but Sometimes You are the Ball

An interesting experiment, do a Google search and figure out Warren Buffett’s investing philosophy is for Berkshire Hathaway ? Now you’ve looked it up (I would suggest if you can find anything on Blomberg you might have a good bit of detail) do you understand it? Think you can implement it? Should you?

Next question, if you can buy a “How to make a million on the market” system, what stops 100,000 other people from using that same system? Food for thought.


RDSP: Banking Challenge Ignored

I have waited 2 months for any bank or their representative to respond to my challenge laid down in RDSP: Question for Canadian Big Banks, and I am chagrined to say that none of them have even sent me a “Shut up you silly man” e-mail or comment yet.

Pablo Picasso's Don Quixote

Pablo Picasso’s Don Quixote (which is who I feel like right now)

I have done my best, I have complained to TD/Waterhouse about how archaic their deposit system is for their RDSPs, I have called out every other major bank for not offering anything other than GIC’s and Bank Based Mutual Funds for their RDSP solutions, and I have whined all over David Hodges at Money Sense (see the article), but nothing seems to want to change.

What are some next steps we can try? I would suggest that if you feel strongly about this contact your bank and voice your concerns, and if they ignore you, contact your member of parliament, as I will be doing today (my member of Parliament is Pierre Poilievre and he even has twitter, so let’s see what he does with a Tweet as well). Can an MP do anything about this? Maybe not, but maybe they need to be aware of it.

I would also suggest Tweeting your bank and ask them why the RDSP is being treated so shabbily ( maybe link to my original post as background ).

If you follow me on Twitter, you will see a sample tweet around 9:30 AM today (it is to my Bank TD asking why their deposit system is so cumbersome). I am not espousing SPAM’ing the heck out of the Twitter world with this, but it does seem that Tweets get addressed more than E-mails these days.

Maybe I am acting like Don Quixote on this subject, tilting at the Windmills that are the Canadian Big Banks, but I am tired of settling for the “we will get around to it eventually” response I get from anyone I talk to about this.



Reprise: He Has Lunch Out so I can Too!

Here is a parable/story from 2005 about a friend and how money spending can turn into a contest between he and his spouse. I don’t agree with this (and there is a part II to the story as well), but read on and see if you hear anything you and your spouse may have said to each other in the past (about spending).

He has lunch out, so I can….

It’s always fun to go out and talk with friends about life and things, but it seems more and more I am intrigued by the “financial fisticuffs” that goes on in some relationships (most relationships actually, but I digress).

I was talking to a friend, and he had mentioned to me that his wife was out-of-town with the kids and that because of that he was taking advantage and going out for lunch during the week. Now on the surface, that doesn’t sound too bad (these folks are doing well financially, so he is not creating any kind of hardship doing this, and it is not like he was saying, “I am dropping by the strip club every night”) but after I had a chance to think about it I had time to think that this kind of behavior is still perilous in a relationship (any kind, marriage, business, whatever).

This kind of secrecy is a slippery slope to take, especially with money (but in general as well). If you do something, which you know might upset your spouse or partner, so you don’t tell them about it while in many occasions is prudent, nobody likes to “argy bargy” about things, it may be a symptom of a larger problem.

Money is one of those things that can destroy all parts of any relationship. Normal rational humans can become completely unglued and do the strangest out of character things, all in the name of money, keeping it, or spending it (or worse still in reaction to what someone else is doing with money).

If you feel you have to hide how you are spending your money from your partner, you really must ask yourself “Why am I doing this?”. Maybe you need to talk to your partner frankly about this behavior, because you might be surprised to find out what your partner thinks.

We leave this posting for now, but I will continue it in a day or so with the next step in this kind of “monetary trickery”, and more to the story I am telling.


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