Canada turns 150 tomorrow, and the City of Ottawa has put out its best for folks to celebrate. Should be interesting, I vaguely remember 1967, and I hope I am around for 2067 guess I should really push out the boat on this one.
My family, immigrated to Canada, and I am so thankful that they did. While I respect and love the land of my parents (Wales & Britain), Canada is my home, and it will always be with me.
The Bank of Canada Governor is saying he thinks low-interest rates have “done their job”, however:
“… certainly we need to be at least considering that whole situation now that the capacity excess capacity is being used up steadily.”
Yes, the first 1/2 of the final season of Game of Thrones starts soon too. Rising rates will bring financial winter for some folks.
Writings This Week
I have been working on RESPs and High Fee Mutual Funds for a while. It has languished, but I was able to figure out what I was trying to say (I think). Just because it is easier to use a Bank Mutual Fund account for your kids’ RESP accounts, doesn’t mean you should use it. If you ever hear someone from a Mutual Fund firm brag about how high their fees are, please drop me a line.
The video of her interview is at the end of this post. The major things to take away are:
The system is daunting for disabled folks (or their families) to set things up. No argument from me, we are lucky we got help.
It is not used by 85% of folks eligible (over 500,000 Canadians who could use it, don’t)
These folks need help, but not from the “Helpful firms” that will scrape up to 30% of their tax refund to do
Certainly the way it feels sometimes dealing with DTCs and RDSPs
I must commend Kerry for her exceptional efforts in this area and her impressive presentation on the topic. She also acknowledged me (for those of you curious about who the Big Cajun Man is, watch the video) and the significant help that Mrs. C8j and I provided her with on this matter. Fortunately, Kerry was the one responsible for presenting and writing it, which made it straightforward to comprehend and sensible.
Let me point out that I do not claim to be an expert on the topic of DTC or RDSPs, I simply have lived the system and have many useful tips for those trying to use it.
Democracy was in evidence in B.C., when an election was decided by 9 votes (effectively). The riding of Courtenay-Comox was won by a 9 vote margin, in the Wednesday Election. There will be a recount, but if the NDP holds the seat, there is a minority Government in B.C., with the Green Party holding the balance of power. If the Liberals win the seat, they will have a slim majority. Yes, this is why you should always vote.
It is Mother’s Day on Sunday in North America, so remember your Mother. We all had one, and all she wants is for you to give her a call, and maybe visit sometimes.
The Real Estate market in Toronto might be slowing down, but in Ottawa it is starting to heat up. Have not heard of many bidding wars, yet, but maybe folks are thinking Ottawa is a suburb of Toronto?
All you folks who collect Aeroplan Points (like I have for over 25 years) must be shocked as I am that Air Canada is severing their relationship with them. I don’t have many points left, but evidently there is no transferral of points to Air Canada’s new point system either.
Things I Wrote This Week
I wrote three articles this week #Wow. On Monday I wrote about an older book Preet wrote RRSPs: The Definitive Book on Registered Retirement Savings Plans, which is still topical. It was written before the TFSA, so it could use an update with the TFSA added in, but still a very good reference book.
After working with Kerry K. on her research, I came across a great quote about an issue with the RDSP program, and its horrible subscription rate. DTC RDSP Vicious Circle talks about how you need a DTC to set up an RDSP, but why some folks don’t bother with the DTC.
On the sister site to this site, I wrote about an important personal security issue, The Difference Between Phishing and Spear-Phishing,outlines what to look for in both cases. If you are under a Spear Phishing attack, it is most likely due to your friends having their accounts compromised.
I understand you’re aware of the profit-driven approach taken by banks, and the recent CBC coverage on this topic. It’s important to recognize that banks are not your friend, but rather they are businesses focused on generating profits for their shareholders. As a customer, you are simply an income stream that banks can exploit to meet their financial goals. We need to remember that our relationship with banks is purely a business one, and it’s up to us to be vigilant and protect our interests. The onus is on us to take charge of our finances and not rely on our banks to have our best interests at heart. Oh those naughty banks.
V is not for Victory ?
Remember those thoughts the next time you think your bank is helping you out, by allowing you to have a new service. The only reason they let you have it, was to make them money.
Have I mentioned how much I dislike finding snakes in my car? As Bugs Bunny said, “Good Bye Florida!”.
It snowed, in Ottawa, too much. That is all.
It Snowed, Again
My Writings for Week Ending March 17th
I took a week off, given it is March Break. Stay tuned we will be celebrating my 12th year of being the “Cranky old man of Personal Finance”, next week!
Lent for 2017 has begun, and as usual, I hope folks use this period to enrich and change their lives (spiritually and financially). This is an excellent time to try new lifestyles, financial ideas, and concepts. The period is only 40 days, which allows for a short-term experiment.
“In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected. However, exports continue to face the ongoing competitiveness challenges described in the January MPR…. In this context, Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent.”
The days of incredibly loose money policies may be numbered, but I have been saying that for about 10 years.
Ontarians will be paying less for electricity soon (17% less?), but will be paying for it later. What will lower hydro bills in Ontario do to the Inflation numbers? Will this somehow salvage the Liberals’ chances in the next provincial election?
RRSP season is over, but it has also begun again for 2018. What if you put a little away every pay cheque, and adjusted your tax at source to reflect that? That way, you will not be loaning the government money this year.
It is Crashed Ice weekend here in Ottawa. Crazed skaters go up and down a roller coaster of an ice track, racing each other? Luckily it has cooled off. What better way to help celebrate Canada’s 150th birthday?
My Writings for the Week Ending March 3rd
It was a busy week for me, with plenty to write about. I started off with Gasoline Pushed Inflation to 2.1 %, which of course is from our friends at Stats Canada. The good news is that fresh fruit and veggies are cheaper. With RRSP season coming to a close on March 1st, I felt it important to remind folks about 5 Things to Remember about RRSPs. Finally with Lent starting on March 1, I gave a few good ideas of things to try out during Lent with, Money and Lent : Clutter too ?
A Money Thought
I sometimes like making flow charts, and this is one of my favorites. Yes the box shapes really mean something.
