Summers end, Taxes, Doomsday Insurance, Uber and #MoneyTalk

Tax discussions continue in the media with both sides of the argument claiming the other is misleading the public (on the usage of incorporation for individuals, to be specific). The tax change will not change my life, except that most of my doctors are threatening to move to the USA if it happens, but I am curious. If the law is passed, what smart accountant will find the “wrinkle” in the tax laws to allow for money sheltering? As usual I don’t feel I know enough to say if either side is “pleine de merde” or not.

Understatement

Masterful Understatement

Given all the hurricanes lately in the states, are you aware that hurricane insurance and flood insurance are two different things? I didn’t realize that, and I don’t think I need hurricane insurance in Ottawa, but do I need flood insurance? Wonder if I need thermo-nuclear attack insurance, given North Korea’s continued sabre rattling? Is that covered under some other policy?

I took my first Uber this week, didn’t seem that cheap to me, but it was during the work day, and I was going to an out-of-the-way place, but so far the hype of this outstrips my experience. Driver seemed like a nice guy, payment using my phone seemed OK too, but seemed like a Taxi to me.

The Canadian Financial Summit happened on-line and you can have a look at the talks. Some are quite interesting, oh and here is my tip (I offered to do this as a presentation):

If you spend less than you make, life is easier. Debt is bad.
My perspective on these talks is you should take all advice (including this) as a lexicon of ideas and find what works for you. Luckily no one is espousing how short-term loan companies are really our friends.

Recent Writings

I keep hearing from co-workers about how banks are forcing them to open bank accounts with them, if they have a loan with the bank, and that is where Bank Accounts and Loans came from. The Banks have the right to ask this of their customers, but their potential customers also can decline.

Micro Blogging on Finance

Boomer and Echo came up with a very powerful tweet, which I liked a great deal.

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Farewell PC Financial, Summer Holidays, Bat Guano and #MoneyTalk

It seems PC Financial as a bank is done, and CIBC will create Simplii its own brand name. You will no longer get PC Points for banking, except with your PC Mastercard. For me, it makes it easy to walk away from PC Banking, and move the rest of my secondary banking to Tangerine (for now). PC Banking gave me many PC Points and free banking, so I am sad to see the brand go over the banking horizon (like Canada Trust, Waterloo Trust and others). Farewell free PC Chocolate Chip cookies too .

PC Financial Farewell

Farewell PC FInancial

If you want to join Tangerine, use my code and I make some money too ( 47979477S1 )

I have taken the summer to spruce up a few things on the web site . Most of what I have done is not obvious, but here are a few highlights:

  • The site is now HTTPS based, which makes it a bit more secure, and if I ever start selling stuff and such, I am ready to go. If you link to me, or have bookmarks, you could update those just by adding the S to httpS ๐Ÿ”’.
  • The RSS feed is now back to https://www.canajunfinances.com/rss.
  • Updating many of my back catalog articles (which if you are on my social media feeds will see them). Still have about 2500 or so to rewrite (or remove), so this will beย  a long-term project.
  • Looking at revamping the look of things, but I say that every year.

Politics in the states is now crossed the bat guano insane line. That is all. Mayhem is notย  a ladder, no matter what Little Finger thinks.

Interesting thought for the week, NetFlix, while an industry leader, has over $15B in debt, is that good business or bad business? Only time will tell.

Recent Writings

I keep reading about the importance of building up your credit rating, so I figure I might get a rise out of some folk, but Credit Cards Help You Get a Mortgage caused nary a ripple in the internet. Still not sure if your credit card limits still count against your mortgage capabilities, but they should!

I did my 6 month rant about the TD Direct Investing RDSP issues, RDSP Deposit Obfuscations Continue , but I got an interesting comment that I will be pursuing with TD Direct Investing. Seems like my account may be badly configured, because at least 1 reader can make direct contributions to their RDSP account. I will keep you all posted on this.

Micro Blogging

I am experimenting with tweets and Facebook posts that are not full stories, this week a simple philosophical statement by me, that took a while to figure out.

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Paying Children to Move out, Sears, and #MoneyTalk

How much would parents be willing to pay adult (over 18) children to move out of their house? According to the CIBC it is $24000 , which is a nice round number. I have written about Kippers and children living with their parents, so this data is of interest to me. The CIBC Gifting Poll, suggests there really is a magic number that parents are willing to shell out to get kids to move out. The poll mentions how “… gifts shouldn’t come with strings attached…” but I have no problem, calling a bribe, a bribe.

Another interesting point is the flood of inheritance money that will be unleashed as the baby boomers pass on their amassed fortunes ($750 Billion over the next decade?). I don’t know many folks that speak openly of inheritance money they expect, but if you know for sure you are receiving it, shouldn’t this be part of your financial plans? It sounds quite crass, but if the money will be arriving some time, why not add it to your plan?

I was disgusted to read that Sears employees are not getting their severance payments, yet, executives are having their bonuses paid. This cuts too close to the bone for a former Nortel employee. Nortel is finally paying out to their former employees (at pennies on the dollar), what the employees are owed. This kind of business bad practices that really does get under my skin.

I think the deepest thought I read in while was, “Hipsters listen to the Best Of albums, but real fans listen to the complete original LPs”. It is deep because there are so many parts of that phrase that my children wouldn’t understand. What is a Best Of album? What is an LP?

Next thing know that this was a major advancement in engineering and finance.

Slide Rule

Behold the Magnificence of the Slide Rule!

I Wrote This Week?

Yes, I did write this week. I have been working a very loose schedule for the past while, I am hoping to step up the pace a bit more soon, but this week I wrote Low Inflation Means No More Interest Hikes ? Will the continued low inflation keep the interest rates low? I don’t think so. The Bank of Canada has been fairly clear that there is too much stimulation in the economy with low interest rates. I am assuming there will be at least another 1/2 point raise of rates if not more, but low inflation may slow other rate increases?

Micro Blogging

I am experimenting with tweets and Facebook posts that are not full stories, but get a point across about the economy, witness this GIC commentary. I would bet there might be a few millenials that might have asked, what is a GIC?

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Rate Reactions, Mortgage Double Ups, Bad Cycling and #MoneyTalk

A week after the tumultuous news of the Bank of Canada raising their nightly rate by ยผ% Canadians are still recovering from rate reactions shock. As I have said, if that rate increase caused you consternation, “… you ain’t seen nuthin’ yet…”. While rates will not sky-rocket they will slowly increase back to normal levels (whatever normal means these days).

With the rates moving upward I wonder if it will become “cool” again to make overpayments on mortgages (again)? I found it interesting with rates so low, making “double up” payments or such would get the loan principal down, but it became very passe to do that. You could make so much more investing the money, was the argument. Funny, that argument is always around (no matter what the rates are at).

The new “thing” to talk about is the impending Stock Market correction. Many financial talking-heads are espousing that the markets are far too high, and there will be a correction soon. This is possible, but as I have said, “Economists have predicted 7 out of the last 3 market corrections“, so take it with however much salt you wish.

Game of Thrones starts the firstยฝ of their final season? Winter is here, both in Westeros and financially in the real world.

Game of Thrones Financial

Rates are Rising, Winter is Here

Interesting that not too many of the talking heads are saying much about the fact that bonds should drop in value with interest rates rising? Doesn’t sound right does it, but my Bond Funds have dropped in value over the past few weeks.

Most disgusting thing I have heard about at work? Someone boiling the silicon buds from their headphones (to clean them) in the communal group electric kettle. I know longer drink tea at work.

Cyclists Take Heed

I know many of my readers and friends are avid cyclists, so please take heed of this video of the importance of stopping for red lights and stop signs!

๐Ÿ‘‡ For more great financial articles from this week click here ๐Ÿ‘‡๐Ÿค”

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Keep Calm and Pay Off Your Debt and #MoneyTalk

The Bank of Canada upped their key overnight rate by 50% this week! How will consumers possibly withstand this huge jump? Yes, that is how I interpret a lot of the talking heads reactions. If the ยผ% increase of this week is impacting your life, you are in some serious trouble financially. Most of the experts are more concerned about the return to less opportunistic rates. It is time to pay off your debt, or figure out where you go from here.

I did like one talking head that pointed out that the passed two rate drops were both ยผ%, however the banks both time only lowered rates by 0.15%, yet most banks have already jumped their “prime” rate by at least ยผ% in reaction. Some banks had already raised their rates, and this is why I own shares in banks (horrible to customers, but good investment). Someone else pointed out that the interest rate on Savings Accounts doesn’t appear to be rising, at some banks.

Remember that other lenders may jump on board as well, and raise their rates. Can your car loan or lease go up? Might want to check the fine print, but your HELOC and unsecured lines of credit are going up.

Is this the cold shower the economy needs to cool things down? No, not yet, if rates return to around 4% then we will see housing markets going into the crapper, but that could be where we are headed. The economy has been stimulated for a long time, time to calm down.

Keep calm and pay off your debts, as I have said so many times before.

Money is Too Tight to Mention Simply Red

Is Money too Tight to Mention ?

What if this is actually similar to the 70’s, wonder what today’s 20 year olds would do if their mortgages were 15% annually, and inflation was running at 10% or higher? Yes, I am just stirring the pot, but still an interesting question.

Is Money too Tight to Mention ? Not yet, but it might head there soon. Still one of my favourite tunes from Simply Red.

Allow me to give an alternate perspective on raising interest rates. Increased interest rates will finally teach a generation about the importance of paying down debt. How does anyone know about the power of compound interest, when rates stay at 2% (a doubling period of 36 years)?

The other interesting topic that I haven’t heard discussed is what does this mean to the biggest debtors, the governments? How will all level of Governments “balance” their budgets with higher interest rates? Higher taxes, is my guess, but I am not an economist.

Pay off your Debt

Writings Past Little While

Haven’t been really writing much, but I have been rewriting and updating a great deal of my back catalogue (well worth checking out). Check out my Twitter feed if you wish to see some of the best of, but I did write about Unlocking Your Phone, What Comes Next? Waiting until December 1st is the first thing, unless you go to the Apple store and buy your phone Unlocked.

I am still astounded that Bell (another terrible to customers, but good investment) hasn’t simple foregone their profits on unlocking, but that is why I am not in marketing.

Some of My Favourite Talking Heads

I know two of them!

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