Canadian Money Review

Canadian Car Repairs: Any Garage Reviews Available?

noreply@blogger.com (Ottawa Guy) — Sun, 05 Apr 2009 15:52:00 +0000

As I am trying to find a better garage for car repairs, I went on Google to find reviews. Surprisingly enough, I didn't find any good site. Do you know any?

My experience in the past, and I'm sure yours as well, is that a lot of those places are more concerned about getting a lot of your money than getting your car working well ...

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On a related note, do you know any good garage in Ottawa ? :-)

New Canadian Forum on Personal Finance

noreply@blogger.com (Ottawa Guy) — Sat, 04 Apr 2009 15:28:00 +0000

Thanks to Million Dollar Journey and Canadian Capitalist, we now have a Canadian Money Forum to discuss matters related to personal finance. I am going to register just after this posting :-)

Sears Canada charged me because THEY owe me money!

noreply@blogger.com (Ottawa Guy) — Thu, 26 Mar 2009 22:07:00 +0000

Picture that: I somehow overpaid 56$ on my Sears credit card (which I don't use often). I haven't bothered with that for a few months since I figured I'd use the card at some point.

I just got a statement that borders on fraud! Sears basically charged me 25$ in administrative fees for having to hold the extra money they owe me!

This is ridiculous and I promise officialy here on this blog to give them hell for that. You can be sure that credit card is going in the shredder in the meantime ...

Spend your money "wisely": be careful about Blue Ray Discs Players

noreply@blogger.com (Ottawa Guy) — Tue, 24 Mar 2009 02:45:00 +0000

If you are going to spend money on a flat screen 1080p TV (if you really have to, like me ;-) and are thinking of getting a Blue Ray Discs player, think twice.

I got a Samsung BD player for "free" with the TV and surround sound system and everything is nice except for one detail: the movie companies keep adding new protections on the discs (against piracy) since hackers tend to crack previous ones pretty fast. What it implies though is that the BD players manufacturers need to release regular firmware updates (that you need to download) to allow us (aka "the suckers") to play the newly released discs. The problem is that Samsung, in this case, is not keeping pace. I just rented two movies that didn't play: Milk and Bolt. I've called Samsung and there's no new firmware available for now and they don't know when an update is coming. That is really annoying! At least I rent my movies with Zip.ca so I don't pay a lot per rental.

I've heard Sony does a better job with the firmware updates (to be confirmed).

note: for the geeks amongst you, the anti-piracy technology that's causing all that problem is called BD+ ... read more about it on Wikipedia

E*TRADE Canada is now Scotia iTRADE

noreply@blogger.com (Ottawa Guy) — Tue, 10 Mar 2009 11:26:00 +0000

It finally happened! As an Etrade Canada customer I got this email in my inbox:

"Dear Valued Customer,

Welcome to the new Scotia iTRADE (formerly E*TRADE Canada). We've kept what you like about E*TRADE Canada such as the intuitive platforms, ease of use, low commissions and fees, and added powerful new benefits.

Plus, your first trade is on us!*
Place a trade between March 10^th and March 13^th, 2009 and we'll rebate the commission*.

Now experience the power of Scotia^TM on your side. This includes access to new, top-ranked Scotia Capital^TM research through our Analyst Research Centre.

Important Reminders
The E*TRADE Canada website address is now scotiaitrade.com(please update your bookmarks!). The site now has a new look, as will your statements and trade confirmations, but we've retained the same simplicity and ease-of-use you've come to expect.

There's no change to your bill payment setup. But note that cheque deposits should now be made out to Scotia iTRADE Corp. and that E*TRADE Canada email addresses are changing to scotiaitrade.com.

So, welcome. We know you're going to enjoy the extra control and independence.

Get started NOW. Your first trade is on us!*

Claymore 1-5 Yr Laddered Corporate Bond ETF

noreply@blogger.com (Ottawa Guy) — Tue, 24 Feb 2009 02:08:00 +0000

You will soon be able to buy 1-5 years laddered corporate bunds ETFs through Claymore's CBO (-TSX news). I've asked Som Seif, Claymore's CEO, what were the advantages of his new offering compared to the IShares' XCB. Here's what he had to say:

"Claymore 1-5 yr Laddered Corporate Bond ETF uses a simple and transparent fixed income ladder strategy, which is a great way to play the fixed income yield curve over time. It has a low duration of approx 3 yrs, and has an MER of 25 bps, which is lower than other Corporate Bond funds and ETFs (iShares is 40 bps and a higher duration). If interest rates start to rise, you want to have shorter duration. Ladders are great long term strategies that don’t need a lot of maintenance. CBO takes care of getting all the bond exposure at institutional pricing, and all the rolling of the bonds each year."

In these times of uncertainty, it seems bonds are getting popular again. Corporate bonds are riskier than government bonds but post higher yields. Buying through an ETF definitely lowers your risk since you're not exposed to only a small number of companies.

The TSX news release also tells us when we can buy this new ETF:

Listing of the Units will become effective at 5:01 p.m. on Tuesday, February 24, 2009 in anticipation of the prospectus offering closing on Wednesday, February 25, 2009. The Units will be posted for trading at the opening on February 25, 2009.

Michael James on Canadian auto bailouts: don't do it!

noreply@blogger.com (Ottawa Guy) — Mon, 23 Feb 2009 14:10:00 +0000

You have to read this excellent piece on auto bailouts from Michael James.

new blog on the blog roll

noreply@blogger.com (Ottawa Guy) — Sun, 22 Feb 2009 12:05:00 +0000

I've met Preet recently in another meeting of Ottawa financial bloggers so I added his blog to the feeds you see on the right side of this blog. Have a look at wheredoesallmymoneygo.com. The Canadian Personal Finance Blog has a summary of how frugal we were :-)

Question of the day: what if an ETF provider goes bankrupt?

noreply@blogger.com (Ottawa Guy) — Fri, 20 Feb 2009 00:57:00 +0000

I was wondering today: what would happen to one's ETFs holdings if the ETF provider itself went bankrupt? I assume there must be some protection scheme in place, but I haven't found a clear proof for Canadian ETF providers.

They really want your money! The high-interest savings and TFSA accounts war.

noreply@blogger.com (Ottawa Guy) — Thu, 12 Feb 2009 03:57:00 +0000

PcFinancial has just raised their high interest savings account rate to beat ING direct. But you can still find even better rates ...

Here are the current interest rates kings (as of February 11th 2009) * :

Manulife 3.5 % (this seems strangely high - investigating)

Achieva: 2.80%

PcFinancial: 2.55%

HSBC: 2.5%

ING Direct: 2.5%

Canadian Tire Bank: 2.5%

TD: 2.5%

CIBC: 2.5%

BMO: 2.5%

ICICI Bank: 2.5%

Scotia Bank: 2.4%

Outlook Financial: 2.25%

Royal Bank: 2.25%

Etrade 1.75%

(* not looking at short term promotions but including accounts with a 1000$ min balance - I've picked the highest rate between the TFSA accounts and regular high-interest accounts - note that some TFSA accounts have higher fees than others)

please let me know if I've missed key institutions or if there are changes ... I'll try to post regular updates

Wikiinvest .com : The Personal Finance Wikipedia?

noreply@blogger.com (Ottawa Guy) — Wed, 11 Feb 2009 02:53:00 +0000

I saw a story on Digg.com today (can't find the link now) about Wikinvest.com . The concept is very interesting and similar to Wikipedia. Anybody can contribute to the site with their personal finance and investing knowledge. Over time, this might become a great resource for financial information. They have implemented a reputation builder so that you know which contributors are really active and taking time to create good articles. The great thing about this is that it's a collaborative effort involving thousands of people working towards a common goal. The result might end up being much more valuable than the plethora of small blogs run by individuals (like mine!) all often covering the same topics.

Etrade interest rate lower since ScotiaBank bought it?

noreply@blogger.com (Ottawa Guy) — Sat, 07 Feb 2009 13:34:00 +0000

In my last post, I pointed out that Etrade does not have the best high interest savings account compared to PcFinancial (or even ING Direct as a reader pointed out). I'm wondering if this could be related to the fact that it was bought by ScotiaBank....

High Interest Savings Account: Pc Financial better than Etrade Canada

noreply@blogger.com (Ottawa Guy) — Thu, 05 Feb 2009 01:52:00 +0000

I've just noticed that my PcFinancial Interest Plus account (min. bal. 1000$) is giving me 2.25% and my Etrade Cash Optimizer account (no min. bal.) is only giving me 1.75%. It's a reversal of fortune since Etrade used to be better ...

Would you buy bonds at this point?

noreply@blogger.com (Ottawa Guy) — Wed, 04 Feb 2009 03:03:00 +0000

With current interest rates so low, is it too late to start buying bonds to build safety in your portfolio? When the economy recovers, interest rates are bound to go back up thus making bonds less valuable.

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I receive an investment newsletter that suggests being underweight in stocks at this point. I'm personally buying small amounts of stocks on a regular basis to profit from the good dividend yields available (much better than what bonds return!).

Rob Carrick tell us what we should put in our TFSAs

noreply@blogger.com (Ottawa Guy) — Wed, 21 Jan 2009 22:40:00 +0000

Rob Carrick tell us what we should put in our TFSAs. There are pros and cons for different types of investments (bonds vs stocks, etc.). An interesting suggestion at the end is to buy corporate bonds which offer a higher yield.

watch out for currency hedging

noreply@blogger.com (Ottawa Guy) — Fri, 09 Jan 2009 01:06:00 +0000

Canadian Capitalist highlights an important fact about currency-hedged funds and ETFs: they don't perform as well as the non-currency hedged ones!

Ottawa transit strike: how to find a ride and save money

noreply@blogger.com (Ottawa Guy) — Fri, 12 Dec 2008 02:59:00 +0000

For those of you living and Ottawa and usually traveling by bus, you can go the ottawaridematch.com web site to find a ride. (If you're a driver, you can offer your help on that site as well.)

NEW Scotiabank prime rate: 3.5% -> sweet!

noreply@blogger.com (Ottawa Guy) — Thu, 11 Dec 2008 01:22:00 +0000

I was happy about the previous Scotiabank prime rate (I have my mortgage with them). Now they've lowered it by 0.5% which makes it 3.5% and gives me a variable mortgage rate of 2.75%! Unbelievable. I'm really happy I chose a variable mortgage rate back in June. I started then at 4%. I know I'm lucky with my timing but I can't complain about that.

RBC, TD, Scotiabank, BMO and CIBC to cut their prime rate by 50 basis points instead of the full Bank of Canada cut of 75 basis points

noreply@blogger.com (Ottawa Guy) — Wed, 10 Dec 2008 03:04:00 +0000

The Bank of Canada has lowered its interest rate and the banks are lowering their prime rates. But they are only passing to their customers 0.5% of the 0.75% given by the BoC.

Stock buying: "Never Try to Catch a Falling Knife"?

noreply@blogger.com (Ottawa Guy) — Sat, 06 Dec 2008 13:41:00 +0000

We often hear to "Never Try to Catch a Falling Knife" about buying stocks in a declining stock market. I got reminded of this recently by reading a post over at milliondollarjourney ("What I have learned from the bear market"). I've started buying some ETFs again recently (see my most recent buys) and I'm still wondering if it's good thing or not. That said, I'm only buying in very small chunks and my plan is to do dollar averaging over the next year. One reason is that you can get pretty good dividend yields right now although in a very bad economy, those returns might get much lower.

Canadians jobs are being lost! What is the government doing?

noreply@blogger.com (Ottawa Guy) — Fri, 05 Dec 2008 16:15:00 +0000

Now that the Parliament is prorogued, I wonder what our politicians are planning to do until the sessions resume. There is a clear need for a stimulus package (as pointed out by Stephen Jarislowsky) and now it seems it will be delayed by the games being played in Parliament ...

potential TFSA administration nightmare?

noreply@blogger.com (Ottawa Guy) — Mon, 01 Dec 2008 02:41:00 +0000

Maybe I just have an active imagination, but I think TFSAs could become an administration nightmare for its users and the government ... How so? Well, imagine if you always transfer your pay in there to get all the high interests you can and then take some of that money out to pay some bills. You also take another chunk of money and transfer it into your discount broker TFSA to trade some stocks. Since you take money out of the TFSA, you need a paper trail to prove you have room to put more money in later in the same year. Imagine that this happens daily in the worst case: you'll have to keep hundreds of papers to file your tax returns ...

Please correct me if I'm wrong!

Obama and the economy: maybe there is some hope!

noreply@blogger.com (Ottawa Guy) — Mon, 01 Dec 2008 01:41:00 +0000

As I'm reading 'the Audacity of Hope' from Barack Obama, I can't help but think that he's going to do better with the economy than his predecessors. He's very open minded and rational, but, above all, I think he'll be able to keep his ego in check and surround himself with the best people able to solve that crisis. It doesn't mean it will be easy, but I hope that it help bring the US economy (and thus the Canadian economy) back on track faster than without him around.

Here's an interesting quote that shows how he thinks the government should handle new spending and tax cuts:

It is not the debt that is most troubling. The bulk of the debt is a direct result of the President's tax cuts, 47.4% of which went to the top 5% income bracket.
We can eliminate tax credits that have outlived their usefulness & close loopholes that let corporations get away without paying taxes. We can restore a law that was in place during the Clinton presidency--called Paygo--that prohibits money from leaving the treasury without some way of compensating for the lost revenue.

my latest stock buys

noreply@blogger.com (Ottawa Guy) — Mon, 24 Nov 2008 01:25:00 +0000

I am slowly (very slowly) getting back in the market ... although I believe the crisis will last for a while, I can't resist bargains and good dividend yields :-)

my latest buys (and please don't use those as financial advice!):
- XDV at 14.05
- XIU at 11.75
- XRE at 6.8
- CLU at 10

I also have a pending order for CIE ...

So you see that all my buys nowadays are iShares and Claymore ETFs ...

Paypal Security: safeguard your (Canadian) money!

noreply@blogger.com (Ottawa Guy) — Fri, 21 Nov 2008 00:38:00 +0000

A lot of people use Paypal nowadays to make and receive payments. If your password got compromised, it could have dire consequences ... What can you do about it? I've just realized they've got a new security feature in the form of security keys. You can get either a secure token or use your cell phone as a substitute. That's a pretty wise way to do it without having to carry a secure token with you. It's pretty simple: they send you a text message with a security code every time you log in. So someone with your password could not log in if they don't have your cell phone (or secure token) as well. Simply brilliant!