Random Thoughts

Three of the big banks in Canada announced good profits ( TD, CIBC, and RBC) which has caused another jump in their value, and dividend output. Michael James thinks that the Canadian Banking system is in for a day of reckoning (i.e. their profitability will drop), but  evidently not today.

Estimated reading time: 5 minutes

Canadian sportscasters have been lampooning Ottawa Sens fans for not selling out every playoff game. The Sens do, however, have the highest average attendance in the playoffs of the remaining teams. Financial talking heads are annoying, sports talking heads are wastes of space.

When is the best time to buy a house? The answer is simple – when you need it, period. Don’t let the real estate industry convince you otherwise. I have always purchased a house when I required it, and that’s how it should be. Renting may be an option, but if you need more living space and have enough savings for a down payment or rent, then go for it. Don’t be a follower of the herd mentality that urges you to buy a house just because everyone else is doing it. Make a logical decision based on your needs and financial situation, and don’t let anyone persuade you otherwise.

This weekend, the Indy 500 and the Grand Prix of Monaco. You can guess what I will be doing on Sunday, and no, I won’t be going to Church (this week). There is also the Coke 600 if you have a few hours spare.

The Bank of Canada announced no change in their interest rates, keeping that loose money policy in place. Their reasons are getting repetitive, but worth checking out.

The Canadian economy’s adjustment to lower oil prices is largely complete and recent economic data have been encouraging, including indicators of business investment. Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions. Macroprudential and other policy measures, while contributing to more sustainable debt profiles, have yet to have a substantial cooling effect on housing markets. Meanwhile, export growth remains subdued, as anticipated in the April MPR, in the face of ongoing competitiveness challenges. The Bank’s monitoring of the economic data suggests that very strong growth in the first quarter will be followed by some moderation in the second quarter.

They seem to imply that housing prices will start going up everywhere.

Ramadan begins on Saturday, so Happy Ramadan to my Muslim readers and friends.

Things I wrote this week

I did write something new this week, by cribbing Kerry’s presentation on RDSP‘s on the CBC. Being one of her researchers for her piece, I felt I had the right to use the intellectual property. The piece is called 5 Steps to an RDSP, which is a short synopsis  of  the  steps needed to  set up a Registered  Disability Savings Plan.

On the sister technology site, I wrote a short piece attempting to explain, What is Ransomware? Quite topical as Mrs. C8j was the victim this week of a FedEx phishing scam. Her boss received the infamous, “You have a package with FedEx” e-mail with a “hinky” link. Unfortunately she clicked the  link, but  luckily her anti­ virus software caught things before they got out of hand. Never trust links in an e­ mail from anyone, even on a trusted  web site, by the  way click here.

COBOL rules

For all of you lovers of FinTech, this tweet (from me) does sum it up quite nicely.

The Web has gone wild discussing whether giving up avocado toast is the new latte savings plan. The implication is if you cut out exorbitant expenses, that you can live without, you can then afford a house. I feel quite proud that I gave up avocado toast in 1966 (I do not like avocado or guacamole). You should look at where you spend your money, and yes, you should cut down on luxuries if you are saving to buy a house, but don’t make yourself miserable.

Estimated reading time: 5 minutes

If an avocado toast occasionally makes you happy, indulge, but in moderation.

Avocado toast? Seriously? Do people not know the greatness of butter tarts? And to make things worse, a single serving of avocado toast can cost up to $19! Let’s be real, if you’re trying to save up for a house, a daily habit that costs $19 is not the way to go. Instead, you could use that money to buy a whole loaf of bread and a large jar of peanut butter, or indulge in multiple butter tarts. It’s time to make smarter choices with your money.

For most of Canada this weekend is Victoria Day Weekend, in Quebec it is Journee Nationale Des Patriotes but for most it is the first long weekend of the spring. Surprisingly gas prices have spiked here in Ottawa, but I am sure these two  events are not related.

Ransomware is running rampant around the web, which suggests folks need to be much more diligent with your network access . As mentioned in Don’t Click That, do not assume any email is what it claims to be especially if it includes a link to “click”. Ensure you have safe backups of your data, especially financial data, or you could be in a bad way should you fall prey to these nefarious nincompoops.

The other exciting technology point is that Windows XP will be patched! Why, you might ask? The Windows XP patch is so that ATMs (yes banking machines) and point of sale systems can be safer to use. You read that right, the two most used pieces of #Fintech out there are running on Windows XP. Choke that down  with your avocado toast.

Canada is turning 150 this year, but Montreal (or Hochelaga) turns 375 this year. Happy Birthday, to  my birthplace, you don’t look a day over 350!

Prince Philip announced his retirement from Public Life, and at 95 I think he can finally stand down. Prince Philip is a man who speaks his mind, and for that I thank him. One instance from not too long ago was when a photographer was commissioned to take a picture of the remaining pilots from the Battle of Britain. The photographer flitted around trying to get the perfect pose, to which Prince Philip replied, “Just take the f*cking picture!“. Here, here good sir, they were all over 90 and didn’t have time to waste!

Estimated reading time: 4 minutes

Prince Philip is also a metaphor for millennials since they will not be able to retire until 95, either.

The Census showed that there are now more oldies than young folk in Canada. This is the first time the number of folks over 65 outnumbered the number of kids under 14 by 5.9M to 5.8M. I’d like to voice my support for those seniors by shouting, “Get off my grass, you kids!”. While this number seems trivial, it is an important point. Is Canada ready to deal with the explosion of senior citizens? Are there enough care spaces? Can existing pensions deal with this kind of draw? Plenty of interesting questions.

To paraphrase The Sweet, “So recognize your age it’s no longer a teenage rampage, now!”

A Money Thought

You might want to add another useful money podcast to your list. They attract some classy crowd and butter tarts too.

So the Multi-Level Marketing (MLM) has been bouncing around on the Web, and allow me to add my views on the subject. If it looks like a pyramid, and you are encouraged to recruit friends and family so you can make more money, it is a Pyramid Scheme. In my younger days, more than once, I was invited to a “party”. The hosts of the “party” were always vague about why the party was happening, but inevitably, it ended up being a Pyramid Soap Party. After my first Pyramid Soap Party, I learned to be much more inquisitive about parties. Sort of like, if you can’t figure out who the sucker is in the party, be careful, it is most likely you.

Estimated reading time: 5 minutes

Some folks will make lots of money from MLM, but will it be you? This is the question you should ask first, and whether you have a group of friends you won’t mind if they never talk to you again. The snubbing will happen after you succeed or fail at convincing them to join your “… sure fire money making system…”. John Oliver did sum it up best in his video description of things.

Ontario will have a balanced budget by 2018, is the claim put forward by the Liberal Government. This will be done without new taxes on the “middle class” (a term I really no longer view as a valid measurement, everyone has their own interpretation of that term). There will be plenty of higher service charges, so you will pay more, just not in taxes (if you are part of the mythical middle class).

There is an election coming, we shall see whether this sways Ontario Voters or not.

Please do not confuse a balanced budget with paying down the Ontario Debt. The current Ontario Debt is about $312 B (Cdn). Can that amount be repaid? That remains to be seen, but the balanced budget simply means that the Ontario Debt should no longer be growing (however it isn’t decreasing either).

Someone sent me an invite to a meeting in 11 months, and was concerned I only replied with a Maybe response. It vexed them to the point that they came over and asked why? I explained, a lot of things can happen in 11 months. I might win the lottery, or suddenly become a wealthy author, or maybe the horses will sing. She didn’t get that last reference.

My Writings For the Week of April 28^th

I actually finished off 3 different pieces this week, which might signal a renewed dedication on my part, or it might be an anomaly. First I wrote about Quicken 2017 Review – The Year of the Comeback? It is a better version of Quicken that doesn’t crash as much, but still has issues. The subscription aspect of it has me worried as well.

As I have written before I work for the Government and the big news in Ottawa has been the Phoenix Pay system, and the problems it is having. With Phoenix Pay System Side Swipe I point out that not only Civil Servants are feeling the pain of the problems with this new system. Phoenix is even being blamed for bad attendance at Ottawa Sens games this year.

Finally I wrote over at my Tech and Security site something new, For God’s Sake Don’t Click That ! I write about the perils of click-bait and phishing sites out there, looking to make your technological life miserable.