Canadian Personal Finance Blog

Yes, it is Roll Up the Rim to Win (TM) time again at Tim Horton’s, a time as hallowed as Spring in Canada, causing normal folks to drink copious amounts of coffee to ensure they have a chance to win. What are these over-caffenated folks chances you ask? Just click here to have a look at the rules (that every Tim Horton’s is supposed to have around as well) and chances of winning.

If you read this document closely, you will learn:

• If you enjoy your Double, Double in Ontario, you have a chance of winning 50% of all the Rav4’s being given away.
• If you quaff your Regular in BC you only have a 6 in 17,364,000 chance of winning $10,000 (they will give away 6 prizes in BC and they figure to sell that many cups in BC).
• If you win a Rav-4 don’t hand your rim around, and when you try to claim your prize send it by Registered Mail (Timmy’s recommends that strongly)

It is always important to read the rules in these types of giveaways. It used to be they broke down the number of winners by cup size, but for some reason that data is no longer in the contest rules (it used to be Xtra Large cups had a better chance of winning).

I always thought that if a Condom maker wanted to make more better sales in Canada, they should license the Roll Up the Rim(TM) from Timmy’s and change it to Roll Down the Rim to Win (but don’t tear). Guess I think too far out of the box for most marketing companies. I suppose a Mohel could also use my idea, but I don’t think they advertise much. Remember, “The rabbi gets the salary, and the mohel gets the tips.”

My other idea, is that Tim Horton’s should sprinkle a few cups in there that say, “Haven’t you had enough Coffee?”, or “Ineligible to Win again this year!” amongst the cups for fun. They’d have to give out a small prize with them, but that would be funny.

Can advertising add value to a product? I think it can, if our perception of the value of the product is changed by the advertising, then it has added value, and this is the assertion of Rory Sutherland, a self-described “Ad Man”.

Ted.com comes up with yet another interesting video interlude with Rory Sutherland: Life Lessons from an Ad Man.

Advertising adds value to a product by changing our perception, rather than the product itself. Rory Sutherland makes the daring assertion that a change in perceived value can be just as satisfying as what we consider “real” value — and his conclusion has interesting consequences for how we look at life.

I think this is dead right, since many things have pretty much the same technical value, but why is it that iPods are so valued, when most other MP3 players can do most of the same things? Why do folks buy Pepsi instead of Coke (and vice versa)?

Dydd Gwyl Dewi Dedwydd!

Yes, I managed to forget that it was Saint David’s Day on March 1st. so to my Welsh brethren a belated Happy Saint David’s Day, wish.

No You Aren’t Married to Him

An amusing story arose from our application for an RDSP for our son. We applied in November and the account was set up (see New Programs are Never Easy for more details on that saga), and we thought all was fine (with the exception of being unable to access it via my TD Waterhouse on line log in), but things are not as they seem ever, when it comes to some interesting programs.

We got a call last week asking for us to resubmit some of our identification documents because there seemed to be a problem with our application with the RDSP (specifically the grant portion from the Government). We resubmitted them, thinking not much more of it, however, we then received a letter saying we were rejected from the grant portion of the program due to identification irregularities.

Welsh Flag

Now, as background to this story, my wife never officially changed her name when we got married, she simply started using my last name, and for the past 22 years it has not been an issue with the CRA, or any other government agency, but, that has changed. We got told that she must go change her SIN card to match her married name (at least) or she was not going to be eligible to receive CPP benefits and our son would not be eligible for the RDSP grant program either.

I am actually chuckling at this whole thing, but it did force my wife to officially take my last name as hers (at least on her SIN card), but I am curious to find out when they are going to make her change her Birth Certificate to match (at an other inopportune moment in our lives no doubt).

Never assume that just because the Government hasn’t complained about something that they are not displeased with you, seems to be the moral of this story.

Attention Ottawa-area readers: CBC Ottawa is looking to talk to a regular investor between the ages of 25 and 50, who actively keeps an eye on the stock market and may have lost money during the economic downturn and are changing their investment strategy. If you are interested please contact Sannah Choi at 613-288-6471. You can also reach Sannah via e-mail at Sannah-(dot)-Choi-(at)-cbc-(dot)-ca.

RRSPs are Coming to Town

Yes it is that magical time of the year, where banks and institutions beg you to put more money into your RRSP, because it would be a good thing for you when you get older.

Show of hands: Who believes they do this because they are worried about your Golden Years? None? Not surprised.

Banks (and Insurance companies and whomever else sells Mutual Funds) want you to put money into your RRSP now, so that you go and buy their High MER Mutual funds (with the big fat entry fee, and exit fee as well).

How many times have I heard co-workers or friends say, “I just put my money in the Canadian Stock Fund and will move it later”. When I query about the MER for this Canadian Stock Fund usually the buyer is unaware, and what the front or back load is on these funds is a mystery as well. How many folks will move it from this fund at a later date? Don’t know, but my guess would be not many move the funds ever.

I don’t have time to think about this, is another argument folks have given me for buying some very dubious Mutual Funds, which may be true, but why did you spend your money is the answer I give. Would you buy a car, house or even major appliance without knowing that there were hidden fees to buy it and then a yearly “support” fee?

So I shouldn’t buy RRSPs now? No I didn’t write that either, but wherever you invest your money, be sure you understand the costs of investing in this financial device. This doesn’t mean you should blindly go out and buy ETF’s or Index Funds, if you don’t know where (or how) they invest.

Get educated is what I am saying before you go out and buy your RRSP. If you don’t have time to do it right now, then wait until you can figure it out.

Maybe I should just get a Financial Advisor?Caveat Emptor is my response to that idea. The past few months more and more stories are coming out about Financial Advisors, and how they work, so you need to find one that you trust, and ask them, How do you make money? especially if they are offering you their services for “free” (you would be surprised what free really costs). If the advisor suddenly tries to sell you whole life insurance, get up, get your coat and walk out without a single word, and don’t come back.

The hasty or rushed decisions I have made in my life (financially) are rarely the ones I look back on with fond recollections.

Top 10 lists

I was wandering through yet another Top 10 List, and it struck me just how many Top Ten lists there are out there (not to mention David Letterman’s output of a list every night), so here is:

Top 10 Top 10 Financial Lists

Here in no real order is my Top 10 list of Financial Top 10 Lists I have seen over the past little while:

• Top 10 Reasons why High Tech will recover (published in 2001).
• Top 10 Ponzi Schemes to invest in, and the questions to ask your Advisor about their latest Home acquisition.
• Top 10 Ethical Reasons for failed Bank CEO’s to get their bonuses
• Top 10 Ways to save money by not paying off your credit cards.
• Top 10 Most expensive bank service charges, and why we love them
• Top 10 Matresses to store your money sorted by level of comfort (assuming you are only using paper money, no loonies or twonies please).
• Top 10 Mutual Fund by MER (sorted by highest MER), and why they really are a good investment
• Top 10 ETFs that have nothing to do with any index and why you will outperform the market doing this
• Top 10 Reasons that Whole Life insurance policies are better than term policies.
• Top 10 Why 1,000,000 slugs love Vancouver’s weather (even in the winter) and why they are the only ones who can afford to live there

Did I miss any? (yes this is what happens when I get stuck in long meetings and my mind wanders)

Yes the most special day for amorous lovers of Personal Finance is coming on Sunday. Now all good Financial Bloggers know that Saint Valentines is actually the patron saint of all finances, or something like that, and keeping that in mind in this post I will make some suggestions for that special someone that you want to show Financial Servitude too.

Financial Valentines Gifts

This list while not exhaustive is in fact the first such list compiled (this year, on this blog) and should be held with great reverence:

• For the kids, don’t waste your money on chocolates or candies, simply put money into their festive Valentines RESP! Nothing says financial planning than a Registered Education Savings Plan, and your kids will thank you for it (in about 15 years, this year, they may not be as happy with you (re: not giving candy)).
• For yourself, maybe it’s time to set up a Valentine’s TFSA, where you could treat yourself and buy some Chocolate (or invest in Nielsen, who makes chocolate). The TFSA is really at the heart of Saint Valentine’s day traditions in the 21st century.
• Nothing shows your wife or significant other Saint Valentine’s spirit than a Bouquet, of Shredded Credit Cards. This is a great gift because it shows you care enough to make a gift for your loved one, and you have shredded (and cancelled) all of their credit, and that shows how committed you are to your financial future.
• Another gift that your loved one would be able to cherish is a visit to the Spa (well, not technically a Spa, more like a Financial Planners office, which is really a Financial Spa, so it is close). There you can spend hours planning your future life together and set the goals that will allow you to live happily ever after.
• Take your Vacation Fund and make a Saint Valentine’s Day Mortgage Overpayment, and thus shorten your mortgage by 2 months, your family will thank you (in 20 years), but think how much interest you will save!
• Remember what season you are in, so get yourself a romantic, Saint Valentine’s RRSP payment! You lower your taxes, and that means you have some extra money for the next item.
• It’s not Valentine’s Day if the Dad’s don’t get Mums something naughty, so how about some Financial Debt Load Lingerie. Think of your debt like your wife’s underwear (and nowhere else on the Internet, would you ever find that stretch of your imagination except here), thus the skimpier, the better! You don’t want your loved one wearing baggy (but comfortable) Granny Panty Debt Load (i.e. large and uncomfortable debt) so see ee if you can convince your wife to receive a Financial Debt Load G-String! (i.e. very small and very comfortable).

Yes, I am having you on (this is what happens when I go on training and the course gets a little dull, and I also listen to Stephen Colbert while stuck in traffic).

What I am saying is that bankrupting yourself buying a dozen roses and fighting your way into a reservation at a swanky restaurant, while somewhat romantic, can have it’s down side as well.