How does a system named Phoenix go down in flames? The $1B payroll system, will be repaired enough to work (at much further cost), and then it will be replaced by something else? It was obvious that the current Government wanted this albatross from around their neck, but is this enough? We shall see if this helps or hinders them.
An interesting budget. It’s interesting that fiscal conservatism (note the small C) has gone right out the window in North America as a whole. Balanced budgets are a thing of the past, I suppose? There is an extension of the RDSP qualifying plan holders program, which will help families still trying to figure out the RDSP Statutory Guardian world (it is really not easy, and it is expensive too).
Last week Stats Canada published the January Consumer Price Index numbers, and as usual they are interesting.
The Consumer Price Index (CPI) rose 1.7% on a year-over-year basis in January, following a 1.9% increase in December. Excluding energy, the CPI increased 1.7%, matching the gain in December.
Interesting that energy did not cause issues this month.
Looking with a little more detailed eye we can see year over year:
Main upward contributors:
- Gasoline (+7.8%)
- Food purchased from restaurants (+3.7%)
- Homeowners’ replacement cost (+3.5%)
- Air transportation (+12.2%)
- Purchase of passenger vehicles (+1.4%)
Main downward contributors:
- Electricity (-5.0%)
- Travel tours (-2.5%)
- Digital computing equipment and devices (-4.9%)
- Video equipment (-10.0%)
- Natural gas (-3.0%)
Gas is really up year over year, but not really month over month. Eating out continues to rise in cost too.
My Recent Writings
I found something in my backlog of over 300 unfinished titles, with, Credit is the Lubricant for the Wheels of Business, which really should have been title Credit is the Opiate of the Consumer. Banks, and stores want you to use credit but trussing yourself up with easy credit is a dangerous game to play.
Micro Blogging on Finance
Will Payday loans go away? Not likely, according to Hoyes Michalos.
The #ONgov recently made changes to the payday loan industry, in an effort to improve regulations. However, @doughoyes and @TMichalos believe there are some unintended consequences as a result. Hear their thoughts on this week's #podcast: https://t.co/ycevqdfpcu
— Hoyes Michalos (@HoyesMichalos) February 26, 2018
Beware the Financial Ides of March
Luckily the ides of march are still two weeks away. Financial fact, the first quarter of 2018 is over at the end of this month.
- I have always viewed any loan to a family member, is really a gift, however, Prescribed Rate Loans – One Last Kick at the 1% Rate, as written by Blunt Bean Counter, outlines how the CRA wants you to do it.
- Millennials are ditching credit cards, and it’s threatening the entire industry, according to the National Post. Doug Hoyes’ opinion is that only means they are using Payday Loans more, which wasn’t what I was expecting.
- Engen’s Annual Letter To Householders is well worth reading, to hopefully knock some sense into a few folks. No I do not plan on making a pilgrimage to Lethbridge, but it is worth reading.
- Mark from My Own Advisor asks, Should you invest in the cannabis industry? The answer of course is, “Dave’s not here man!”.
- It is half past RRSP season, but remember it is a Tax Deferral Savings Plan, that is really what makes it useful.
Door to Door Sales
I was very glad to read the following tweet that outlines what are not going to be allowed to be sold door to door in Ontario. How will I ever get my duck cleaned?
— Ottawa By-law (@OttawaBylaw) March 1, 2018
The New 2018 Random Thoughts
- Potholes, Tuition Increases, and #MoneyTalk (February 23rd)
- RRSP, Lent, Happy Year of the Dog and #MoneyTalk (February 16th)
- Roller Coaster Markets , Olympics and #Moneytalk (February 9th)
- Superb Owls, RDSP Deposit and #MoneyTalk (February 2nd)
- OHIP Overload, Doomsday minus 2 minutes, and #MoneyTalk (January 26th)
- Tighter Money, Best Investment, Go North! and #MoneyTalk (January 19th)
- Paper Delivery, Bitcoin and #MoneyTalk (January 12th)
- Polar Vortexes, Minimum Wage and #MoneyTalk (January 4th)
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)
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