Bad Budgeting
While budgeting can be a good way to keep your finances in line bad budgeting can be worse than having no budget. Bad budgets can do damage to your savings.
Bank Profits, Loose Money, Used House Salesfolk and #MoneyTalk
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
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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.
5 Steps to an RDSP
There are about 5 steps to an RDSP (Registered Disability Savings Plan) and they may seem daunting but it is an important plan, you can do it! Do not be bamboozled into giving money away for an external firm to do it for you, it is your money to keep.
Avocado Toast, Victoria Day, Ransomware and #Moneytalk
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
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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!
Read More »Avocado Toast, Victoria Day, Ransomware and #Moneytalk
RDSP, DTCs, Mother’s Day and #MoneyTalk
This week our friend Kerry K. from Squawkfox appeared on CBC On The Money and did an excellent job explaining the issues with the RDSP.
Estimated reading time: 6 minutes
Table of contents
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
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.
A Money Thought
Here we have a great resource for RDSPs, reporting on their investing success with the RDSP.
