Over the Christmas holiday Ottawa and Southern Ontario were in the grips of the two words Canadians fear worse than Personal Debt and that is Polar Vortex. It was that bone chilling, battery killing and skin burning cold that we expect in Mid-January, but here it was over Christmas. I have lived through this before, but as I said in 2008 when the markets crashed, it doesn’t mean I have to like it.
With the new year comes many new Government initiatives, and in Ontario that means the minimum wage moves to $14 an hour. There are also new rules about sick leave. What will be the impact of these changes? Currently we have one view that says this will make life easier for those working for a minimum wage, and the counter view that 60,000 jobs will be lost due to this pay increase (according to the Bank of Canada). Time will tell whether this change will make things better for employees, but the early returns suggest the employers are not overly pleased with the changes.
My opinion on the increase in costs to small businesses is that it may introduce more automation in many businesses, and we are already seeing this is companies like McDonald’s with their automated ordering system in store. If costs become prohibitive, businesses will adapt and find cheaper ways to do things, or go out of business. Will this help folks who receive minimum wage? My fear is all this will mean is the elimination of many jobs (or the closing of many small businesses), but I hope I am wrong.
An impromptu survey by me, suggests some small businesses are simply passing the extra cost on to their customer base, by raising their fees.
There was a chance that my last pay cheque of the year might be zero, thanks to the Phoenix pay system, luckily, for me, that did not happen.
The good news is that the Rideau Canal is finally open, unfortunately, it is -20C as a high, so not many folks are going to be skating on it!
Stay warm this weekend, and check on your neighbors too.
My Recent Writings
I took a little time off over the holidays, although I did put out a few articles. I did put out my normal Merry Christmas statement for 2017. Christmas can be very commercial, but to me it means a time for family, and a time to remember those who may not be with us any more. Happy New Year 2018 I decided to point out that I have been at this for a while, and linked to as many of the Happy New Year articles I have written and the New Year’s Resolution articles as well. Yes I really have been at this for over 12 years.
I broke one of my rules of writing with Financial Predictions 2018, by publicizing my guesses as to what this year might hold financially. I try not to go for too much click-bait but the devil took the wheel for a while.
Micro Blogging on Finance
Wondering about when you should start saving and planning for Christmas 2018?
— Meanwhile in Canada (@MeanwhileinCana) December 26, 2017
Happy 2018 What Will it Bring?
A new year with a clean slate has begun, what are you going to do differently? Here are some good articles to help you pursue some new financial ideas.
- The Feds do seem to have taken notice about the complaints about their proposed tax changes for small corporations, however, the Blunt Bean Counter isn’t sure their new ideas are that much better, with The Revised Tax On Split Income Rules
- If you have a Reddit account I would suggest you have a read of the page set up about Cryptocurrencies in Canada and their Tax Implications, lots of good information for all you Bitcoin Billionaires out there.
- Mark from My Own Advisor asks Can you have too much income from dividends? It is a trick question much like, can I be too happy, but still an interesting discussion on a subject Mark is passionate about, Dividend Investing.
- Kyle Prevost (friend of this site) wrote a Guest Post on Boomer and Echo asking, Should You Be A DIY Online Investor? As usual Kyle does a very good analysis of whether you should be doing this.
- Have you been reading about #Meltdown and the issues with Intel’s CPUs? It certainly has caused turmoil for investors in Intel and AMD, but is it as bad as they make it out? Yes, it is bad, but will it affect your PC or Mac? Haven’t got a clear story on that one yet, but be ready for a patches for your OS and your CPU real soon.
- Michael James is a man who I respect when it comes to calculations, so when he calls someone out for miscalculation like he does in Dalbar’s Measure of Investor Underperformance is Wrong, you should have a read.
Mostly Money Returns
Yes, Preet is back with the Mostly Money podcast, talking to Ben Rabidoux, about Real-Estate.
— Preet Banerjee (@preetbanerjee) December 22, 2017
End of 2017 Random Thoughts
- Winter, Inflation and Christmas are Here and #Moneytalk (December 22nd)
- Canadians Owe More , Polar Temps, CPP Survivor Benefits and #MoneyTalk (December 15th)
- DTC Changes, Christmas Present Ideas, Fraud and #MoneyTalk (December 8th)
- Unlocking Phones, Raiding Parents’ RRSP, Household Debt and #Moneytalk (December 1st)
- What is your price, Black Friday, Phoenix and #MoneyTalk (November 24th)
- We Shall Remember, Paradise Papers, Tax Cheats and #MoneyTalk #FLM2017 (November 10th)
- Fall Back, Farewell PC Financial, and #MoneyTalk #FLM2017 (November 3rd)
- Mortgage Tests, Thanks Gord and Bombardier and #Moneytalk (October 20th)
- Halifax Ikea, New Tax Plans, Pumpkin Spice ETFs and #MoneyTalk (September 29th)
3rd Quarter Random Thoughts
- Summers end, Taxes, Doomsday Insurance, Uber and #MoneyTalk (September 15th)
- Rates Up Trend, Summer Holidays, High Gas and #Moneytalk (September 8th)
- Farewell PC Financial, Summer Holidays, Bat Guano and #MoneyTalk (August 18th)
- Paying Children to Move out, Sears, and #MoneyTalk (July 28th)
- Rate Reactions, Mortgage Double Ups, Bad Cycling and #MoneyTalk (July 21st)
- Keep Calm and Pay Off Your Debt and #MoneyTalk (July 14th)
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