2016

The Federal Reserve in the United States in December 2016, hiked its key rate from 0.5% to 0.75%, marking the first time in a year and only the second time this decade. This rate hike is a significant increase of 50%, and it is imperative to understand its impact on Canada. Although it is uncertain what actions Canada will take, it is unlikely that it will follow the US’s lead. We must stay vigilant and be prepared for any changes that may arise with the upcoming presidency of Mr. Trump. I highly recommend reading various articles analyzing the interest rate hike to stay informed and updated on this crucial matter.

The most intriguing part of the announcement is that there were 3 planned rate increases for 2017. This was in reaction to an inflationary trend in the States. Canada may not have reacted with an interest rate hike right away, but a reaction seems likely (unless gas jumps to $120 a barrel, in which case the Canadian economy will be back in boom mode).

What should you have done about this? Lower your debt, now, before it become more expensive to hold, thanks to these interest rate hikes.

The TFSA limit for 2017 is going back to being $5500 (you should know this for your end of year and start of 2017 financial planning). Doesn’t look like the limit is going to go up in 2018 either, which sucks. Don’t be financially stupid, still take advantage of the TFSA program (even if the rates suck).

My Writings for Week Ending December 16th

With the holidays next week, and getting together with family and friends, I wanted to help out with those interactions with my simple idea, Christmas Advice: How to Deal with Uncle Frank the Financial Expert. Every family has the one relative who is a know-it-all and wants to tell you what you are doing wrong.

A Money Thought

The CRA likes to think they can help out with your end of year account close outs, and remember to give this holiday season.

Air Miles has finally capitulated and will not expire 5-year-old miles starting on January 1st, which is a victory for consumer advocacy folks like Ellen Roseman and Robb Engen who have fought this decision very hard. Is this the end of this whole thing in the news? Maybe not, as folks are now complaining that they spent their miles quickly when they heard of the initial decision and are now upset they didn’t have a chance to keep accumulating points.

Advent has begun so you can now put up all your decorations are garlands and the like, but so many of you already had stuff up Mid-November didn’t you? At least try to follow the Church’s calendar for that stuff.

Whenever something is in the news, it brings out the scum, as we are now seeing with the Phoenix payment system that the federal government has tried to get running for a while. Luckily I have had no issues, but some folks are not getting paid, while others are being overpaid, and that is where the story starts to get interesting. There are folks evidently calling Civil Servants and saying they are from the Phoenix pay system and they want their money back (only, no one is doing that right now evidently). These scammers are trying to make some quick dough off a flawed government system.

My Writings for Week Ending December 2nd

A simple little bit of writing for me this week with Debt is a Four Letter word. I was positive I had already written that exact story, however, after I heard our friend Preet B. use it, I went into my archives and found that I had not written something with that exact title. I have said there is no such thing as good debt, but not that Debt is an obscenity.