Random Thoughts

Hope everyone is enjoying the festive last week of RRSP season and for those who enjoy getting that last-minute Income Tax break buzz, you have until Monday next week to get your last minute RRSP contributions in place, to get a break on your 2014 taxes. As I mentioned this week, maybe we should have this kind of excitement for TFSAs? It’s not necessary as the limits carry forward for you (another reason to like the TFSA more than the RRSP).

Sunday is Saint David’s Day for my Welsh brethren. Wales plays France on Saint David’s Eve, let us hope for a festive win to help usher in this happy day. Dydd Gwyl Dewi Hapus.

Dydd GwÅ·l Dewi (Sant) hapus

I gave blood again this week, and due to a small pimple on my regular “giving arm” I gave with my right arm this time. Always an exciting time, but it worked just fine, and I can now feel pious for Lent, knowing I helped someone out. Have you given blood lately? If you can, why not?

The Rideau Canal has set a record for a number of days open this year. We in Ottawa hope it won’t still be open in May.

My Writings for Week Ending February 27th

I did enjoy the festive feel for this final week of RRSPs, and my twitter feed was peppered with useful RRSP commentaries :

• Didn’t hear if anyone used my RRSP Bingo card for their RRSP purchases, I hope someone had fun with it.
• What order do you do your savings RRSP then TFSA ? I have a different idea, but if you are a regular reader you can guess my point of view on this.
• Lent Begins, Freezing Temps, Apples and RRSP and #BestOfThisWeek

Tax Tip: Family Caregiver Amount http://t.co/22ULg5baMw #Autism #CRA

— Big Cajun Man (aw) (@bigcajunman) February 24, 2015

Read More »Saint David’s Day and #RandomThoughts

Lent began in 2015 with colder temperatures, and also it was the start of RRSP season for some folks, although they are not as in vogue.

RRSP season is still ongoing with 16 days remaining to contribute to an RRSP account. Valentine’s Day weekend is a reminder to love without bankrupting oneself, despite pressure from the diamond industry. In light of the release of 50 Shades of Grey, the writer muses that sex toy sales could experience a significant boost. He commemorates his 2,700th post and shares his writings for the week. These include topics on Canadian part-time jobs, retirement, the concept of money being equivalent to love, and transitioning plans for a business.

The Bank of Canada threw us all a knuckleball this week when they announced a quarter point drop of their key overnight rate (on Wednesday). The rate is now at 3/4%, dropping a 1/4, and it seems the Bank assumes the economy needs even more stimulus.

The telling statement from their announcement is the final paragraph of their statement:

The oil price shock increases both downside risks to the inflation profile and financial stability risks. The Bank’s policy action is intended to provide insurance against these risks, support the sectoral adjustment needed to strengthen investment and growth, and bring the Canadian economy back to full capacity and inflation to target within the projection horizon.

This suggests that the very commodity-reliant, Canadian economy is going to take a hoof in the “lower abdomen” thanks to plummeting oil prices. Lower inflation, but higher unemployment seems to be on the event horizon.

The Canadian dollar continues to plummet, thanks to very low oil prices, which may slow down the cross-border shopping insanity that has been going on for a while. Maybe we shall see more of our American family dropping by in Canada this summer? Is this lower interest rate simply going to accelerate the drop of the Dollar’s value? Some experts feel this is going to cause a Canadian dollar back around the 70 cent level (compared to the US dollar), we shall see whether that comes to pass.

My Writings for Week Ending January 23rd

The cold of Ottawa in January constantly begs the question, why do we live here?

• I had another run at some of the Best Financial Tweets of the week. I thought I wasn’t going to be able to find many, but the real problem is, there are too many, and my Twitter feed is too large (I miss far too much).
• I did finally get my money out of the TD RESP account for my daughter, but it took longer than I wanted and I highlight the issues I created by trying to use lower MER Mutual funds with TD E-series RESP Bear Trap.
• How do you eat an elephant ? Here is an idea, don’t order the frigging elephant!!
• RESPs are too hard for Mommies? My regular readers could spot the Swerve title, but I am just not too sure why I have seen so much mainstream media (TV) pushing this Giraffe & Friends RESP thing, and yes, Mrs. C8j was really quite insulted by the pitch.
• Canadian Economy on the Edge, Frigid Temps and #BestThisWeek

Read More »Looser Money, Plummeting Loons and #BestThisWeek

They year 2014 ended with a wimper, but there were plenty of interesting articles written and read for year MMXIV.