WhereDoesAllMyMoneyGo.com

A Lap Of The Blogs

Preet — Fri, 17 Jul 2009 01:03:45 +0000

I suppose there are still some people who don’t know the results of the Ultimate W Expert Challenge (because I still get phone calls and emails asking who won as I didn’t actually post the results on the blog, only in the comments section). I’m happy to announce that yours truly was the winner and the prize was a development deal with the W Network to create a show for me to host. I’ll keep you posted on the progress and thanks for everyone’s support!

From Around The Blogosphere

Jonathan Chevreau writes about the pie in the sky that is the RRSP Meltdown. It works sometimes, but is rarely worth the risk.

Canadian Capitalist looks at the Pixar Phenomenon - how do they keep cranking out hit after hit? The white cheddar topping for your popcorn: crack.

Million Dollar Journey talks about Financial Regrets. I regret not winning the lottery.

Larry MacDonald discusses how NOT to pick an advisor.

Money Grubbing Lawyer has been cellphone free for 7 months. Apparently life goes on.

Thicken My Wallet explains some of the do’s and dont’s of a job interview. I’ll add my own: DO show up on time, DON’T forget to google yourself to see what the interviewer will have learned about you ahead of time.

Mark Wolfinger finds some data that demonstrates what a constant collared equity index portfolio would’ve have down for the last 20 years. Great find!

Michael James on Money explains how much money might be earned by ponzi schemers.

Mr. Cheap discusses the professional beggar.

Big Cajun Man starts a discussion on who is the worst overspender these days: Canada or the US?

This Week’s Racing Video

Since I just bought a go-kart (picking it up on Saturday), I thought I would post a go-kart video. But not just any go-kart, a go-kart that can go crazy fast. The kart I bought is capable of about 100km/h or so, not the ones you see at the indoor karting tracks for kiddies, that’s just too slow… Enjoy!

If you are new to WhereDoesAllMyMoneyGo.com, every Friday I run a post called “A Lap Of The Blogs” which provides links to articles I found interesting and think that others may want to read for themselves. I also sometimes include some commentary on what’s going on in my personal life and a weekly “racing video” since my former life was in the auto-racing industry. The name “Lap of the Blogs” is in reference to “A Lap Of The Gods” which is an old video series which chronicled on-board footage of the world’s greatest F1 drivers lapping various racetracks from around the world. NOTE: you have to visit the actual website to see the embedded video - it may not appear in your email. Just click on the title of the email to see it…

Ontario Announces $10,000 Rebate On Purchase Of Electric Cars

Preet — Thu, 16 Jul 2009 02:38:51 +0000

Ontario Premier Dalton McGuinty has just announced that anyone in Ontario who purchases a plug-in hybrid car or battery electric car after July 1st, 2010 will be eligible for a rebate of between $4,000 to $10,000. There is no official list of details that I could find, but gathered the following information from the Government of Ontario’s website and some various articles published earlier today.

The Details:

Size of rebate will be related to the capacity of the batteries
Vehicles must be capable of highway travel (this therefore excludes the ZENN for now)
Drivers will be able to use HOV lanes even with only one person in the car until 2015
Drivers may have access to priority parking spots at certain venues (i.e. grocery stores)
Drivers may have access to charging facilities at Government parking lots and GO stations

What Cars Might Be Available For The Rebate Next Year?

Chevy Volt - est MSRP $40,000
Toyota Prius Plug-in Hybrid - est MSRP $47,000
Mini Electric - est MSRP $50,000
Mitsubishi i-MiEV - est MSRP $30,000 - $40,000 (?)
Tesla Roadster - est MSRP $101,500
Tesla Model S - est MSRP $57,400
cityZENN - Highway Capable version of ZENN - est MSRP $25,000 - $30,000

So, what do you think? Is this incentive going to work? Or will it just eventually destroy future pent up demand (by getting some people to buy a new car a few years earlier than they had planned)? Will that necessitate future incentives, thereby propagating auto manufacturer inefficiency? Or does it put more expensive hybrids and electrics on a more equal footing with conventional cars until their prices achieve more parity? Comments welcome as always…

Glassdoor.com

Preet — Wed, 15 Jul 2009 02:28:52 +0000

My brother sent me a link to an interesting website: Glassdoor.com. This site allows users to anonymously share their salaries and job titles and the site compiles the data for all registered users to see (you have to register and submit your details to see everyone else’s info, but you don’t have to submit your name or even your company name if you don’t want to).

So for example, you can see what all Project Managers for Company ABC earn, and the range of entries is listed along with Salary, Cash Bonuses, Commissions, Stock Compensation, etc. There is lots more data for US companies, but there are over 1,200 Canadian companies listed (and almost 4,000 salary listings). Check it out if you are interested… and hey, the more data samples they get, the more the utility.

The $200 Home Makeover by Daniela Garritano

Preet — Tue, 14 Jul 2009 01:03:48 +0000

Today I’m excited to feature a guest post by none other than the beautiful Daniela Garritano - designer extraordinaire, and one of the competitors on the Ultimate W Expert Challenge. Daniela is available for design consultations (email her here) and you can learn more about her on her Facebook Fan Page. Without further ado, take it away Daniela!

In a less than stellar economy, we could all use a little good news when it comes to how to improve our lifestyle on a budget, right? Well, what if I told you that you could makeover your home for less than 200 hundred bucks? Pretty sweet deal I’d think. So, here are my personal tried, tested and true secrets that really go the distance. Three elements will get you farther than most, but I’ll give you 5. Because any friend of Preet, is a friend of mine!

1) Paint the town red! (Or green, or blue…)

Get your coveralls ready! Colour with paint is by far the most affordable and vital design tool. And, did you know that with a simple coat of paint, you can instantly increase the value of your home by thousands of dollars? How’s that for incentive!

Daniela’s pick: Ralph Lauren Exceptional Quality Paint, $39.99 per gallon, available at the Home Depot. They may have a limited colour palette when compared to other major paint retailers, but think of how much easier your choice will be! And the best part? The coverage is so incredible, that one coat is often all it takes! Imagine not only the time you’ll save, but also the coin, since you can likely get away with only one can as opposed to the standard two gallons for an average sized room. Happy painting!

D’s Tip: Take your paint swatch with you when you shop! You’ll have a much better idea of what to match and it will cut down on back and forth trips to the store.

2) Let there be light!

Every room needs a practical lighting plan with a mix of ambient and task lighting. So, what you want to do is softly illuminate your space through layers of diffused light. Try incorporating table-side lamps, or floor lamps to have a balanced level of background and direct lighting.

For a warm and traditional look, opt for finishes in bronze or wood. For a more modern take, chrome or brushed nickel is your best bet.

Daniela’s Pick: Style at Home Floor Lamp in Espresso, $39.99 available at Rona.

D’s Tip: Use halogen or incandescent bulbs over fluorescent ones. They are the most effective artificial light and they offer the same softness and subtly that natural light delivers.

3) Baby, pillow talk is cheap

Now, here’s your chance to really have some fun! There’s nothing that adds comfort and texture to a room quite like big squishy pillows! Their plush seduction of softness is what makes a room so inviting and they’re super affordable for a quick fix.

Silk, suede and chenille are some of the most luxurious linens. Use similar fabrics to layer in the softness with gentler hues like blues and lavenders to make a room calming and serene. For an atmosphere of warmth, choose rich dazzling jewel tones like pomegranate or topaz.

Daniela’s Pick: Faux Suede Throw Pillow, $9.99 (for a pack of two!) available at Zeller’s

D’s Tip: Instead of using multiple pillows of the same shape and size, try mixing pillows of different dimensions. Stick with the same colour scheme throughout, and you’re golden!

4) Come along with me, on a magic carpet ride…

An area rug is what I consider to be the anchor that really unifies all of the design elements together (Preet says: like the rug that really tied the room together in The Big Lebowski. Okay, I’ll shut up now.) and it’s a foolproof way to add some whimsy and texture to any room.

Don’t be afraid to add some zing! Bold patterned rugs add texture and color without being overwhelming and they have a chameleon-like effect, by blending with other colours throughout the room.

Natural or organic fibres are better choices because of their durability. They live up to high traffic areas, and are low maintenance when it comes to removing dirt and stains.

Daniela’s Pick: Select Edition 60″x 96″Area Rug in Beige, $48.88 available at Wal-mart.

D’s Tip: Look for a rug with rubber backing to hold still and prevent you from slipping and sliding all over the place! You’ll thank me for it later when your furniture doesn’t budge.

5) In Full Bloom

Whatever your style, fresh flowers really are a flawless way to pump up your space. They look fabulous and they’re an inexpensive way to add some vibrant and eye-popping graphics. And best of all, you don’t have to be a genius of floral design to pull off a hot looking arrangement!

Stuck for a vase? If it can hold water, it can hold flowers! Old watering cans and even teapots make a charming base for any arrangement.

Daniela’s Pick: Loblaws Superstore Fresh Flower 10 Day Bouquet, $9.99.

D’s Tip: To hold onto your bouquet a bit longer, look for a bunch that has yet to be in full bloom. Trim the bottoms on an angle under some running tepid water, and your arrangement should last even longer. My personal favourite place to display is on the bedside table. The aroma is close by, and those beautiful blooms are the first thing you see when you wake. What a wonderful way to start the day on a positive note!

Next time from Daniela: Gettin’ hitched? How to have a champagne wedding on a beer salary!

Highly Paid Government Workers

Preet — Mon, 13 Jul 2009 01:42:41 +0000

Ontario publishes the names and compensation of any public sector employee earning more than $100,000 per year. You can look up the listings by category by visiting the Ontario Government’s website here.

British Columbia also publishes data, although the only link I could find (albeit after only looking for about 5 minutes) shows executive compensation for senior executives and the next four levels of executives who earn more than $125,000 per year. You can find the link here.

Some highlights from Ontario:

CEO of Hydro One 2008 Salary - $924,436.94
CEO of Independent Electricity System Operator - $597,588.01
Chair of the Ontario Securities Commission - $705,604.65
CEO of University Health Network - $736,799.55

While these are large numbers, they actually pale in comparison to their private sector counterparts.

However, it is interesting to note that their collective boss, the Prime Minister of Canada, has a salary of approximately $300,000 (thanks to reader Sean for the info!)

A Lap Of The Blogs

Preet — Fri, 10 Jul 2009 01:58:01 +0000

I always look forward to the Toronto Indy and this year is even more special as my friend James Hinchcliffe will be driving in the Indy Lights series, and if all goes according to plan he will be driving in the full blown IndyCar series next year. Go James!

From Around The Blogosphere

Jonathan Chevreau looks at reasons why shorter term investors might want to consider the Canadian listed ETFs over their US listed counterparts (quotes from yours truly are in the article - thanks Jon!)

Big Cajun Man explains how you can check how many months you have left on your cellphone contract without going into the store. Personally, I just call the customer service number…

Michael James on Money explains how to use silence in a negotiation (it works very will by the way).

Canadian Capitalist is a fan of active management afterall… well, you’ll see what I mean.

Larry MacDonald explains the 398th way to save money (this is in reference to Squawkfox’s great book 397 Ways To Save Money).

Million Dollar Journey explains how we can learn a little about money management from a board game.

Four Pillars talks about some of the dangers a small scale landlord can fall into.

Thicken My Wallet discusses the correlation between the thickness of magazines and the health of the economy.

This Week’s Racing Video

This week I’m posting a video of one of the greatest drivers of all time, Ayrton Senna. But what makes this video especially memorable is that he is driving a Honda NSX (the Acura brand doesn’t exist in Japan if I’m not mistaken) around Suzuka wearing loafers and no helmet! (Email subscribers will have to visit the website to see the video).

If you are new to WhereDoesAllMyMoneyGo.com, every Friday I run a post called “A Lap Of The Blogs” which provides links to articles I found interesting and think that others may want to read for themselves. I also include some commentary on what’s going on in my personal life and a weekly “racing video” since my former life was in the auto-racing industry. The name “Lap of the Blogs” is in reference to “A Lap Of The Gods” which is an old video series which chronicled on-board footage of the world’s greatest F1 drivers lapping various racetracks from around the world.

Asset Gathering Quotas For Advisors

Preet — Thu, 09 Jul 2009 01:59:49 +0000

You may not be aware that some financial advisors have asset gathering or commission quotas (not all do, it depends on their firm). For example, new investment advisors at the big bank owned brokerages will typically have asset gathering targets of around $5 million per year (some are higher, but $5 million is roughly the average from what I have seen).

Every firm is different, and some will assist you by providing referrals from the bank branch network - when a client has perhaps outgrown the mutual funds and GICs offered at the “bank branch level” they may get referred up to the brokerage. Others (most) expect you will source the assets entirely on your own.

I don’t know the exact stats, but a large number of advisors do not stay with their first big brokerage firm after the first two years. You see a lot of them crossing the street. That means they switch firms and bring their clients and assets with them as best they can. The new firm may pay them a bonus on assets they bring in, or treat them as rookies again (with a base salary plus reduced commissions). When their new base salary expires, they will probably have more assets under their belt (what they brought with them, plus what they sourced at the new firm). They will keep on switching until the next time their salary runs out they have enough assets to support themselves from commissions alone.

Branch managers have “new hire” and “competitive hire” targets as well. At the end of the day, the brokerage business lines contribute to the bottom line of the overall companies, so what they do is in theory driven by maximizing shareholder value - but there is something about this advisor turnover that just seems odd don’t you think?

For those who would argue that those who hit their quotas won’t have any problems and those who don’t hit their targets don’t have what it takes to be financial advisors, I would say that if you replace “financial advisor” with “salesperson” then I couldn’t agree more.

ING Direct Embraces Twitter with @FeeTweeter

Preet — Wed, 08 Jul 2009 01:29:16 +0000

You’ve been living under a rock if you haven’t at least heard about Twitter. But fret not, you are not alone if you don’t have a twitter account and now ING Direct is offering you a way to 1) get your feet wet with the twitter experience and more importantly 2) raise awareness on bank fees.

A friend put me in touch with ING Direct’s Social Media Lead who was kind enough to answer some questions about their new FeeTweeter application. My questions are in italics and ING Direct’s responses are in regular text. Please note: I am not being compensated or have any affiliation with ING for writing this post - just thought it would genuinely be of interest to some readers.

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What is the FeeTweeter application in a nutshell?

The FeeTweeter application is a Twitter app that allows users (and non users) of the micro-blogging tool to keep track of the bank fees they’re being charged. The application is located at http://FeeTweeter.fairfees.ca, where you can choose to tweet using your own account or a guest account. You’ll be able to create your tweet by selecting the type of fee, how much it was, and whether or not you think it was fair. You can even customize your message; we’ve received some hilarious ones so far!

The application tallies all of the Fee Tweets that you’ve submitted via @FeeTweeter, and direct messages your totals to you every two weeks. We built out this application in support of our Fair Fees movement, which began early May at http://www.fairfees.ca. It’s a community where you can Listen, Speak, and Act against unfair bank fees, presented in a fun and interactive way.

How can people join in on the fun? Is there a cost or do you have to submit any personal info to sign up?

It’s easy! You don’t necessarily have to have an account or even be that familiar with Twitter (even better, you can get acquainted by trying out FeeTweeter). You don’t have to submit any personal information – even if you log in using your own Twitter account through our application on the FairFees.ca website, it’s only so you can publish the tweet to your stream.

How many tweets have been sent to FeeTweeter so far?

We launched officially July 2, 2009. The running total right now is about 300 tweets and about $4,500 in total bank fees tweeted. Keep ‘em coming Canada!

What’s the biggest fee you’ve seen tweeted?

The largest one we’ve received so far has been $250.00 for Product Transfer Fees. That’s huge, if you consider the average Canadian’s day to day bank fees are about $175 a year.

What is the most common type of fee that people complain about?

ABM Fees are definitely up there. Overage and transaction fees are something that many Fee Tweeters have a beef with as well.

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Test Your Financial Literacy in 3 Questions?

Preet — Tue, 07 Jul 2009 00:22:22 +0000

The following are three questions used to assess basic financial literacy:

Suppose you had $100 in a savings account and the interest rate was 2% per year.
After 5 years, how much do you think you would have in the account if you left the
money to grow: more than $102, exactly $102, less than $102?
Imagine that the interest rate on your savings account was 1% per year and inflation
was 2% per year. After 1 year, would you be able to buy more than, exactly the same
as, or less than today with the money in this account?
Do you think that the following statement is true or false? “Buying a single company
stock usually provides a safer return than a stock mutual fund.”

In a recent study published by Annamaria Lusardi and Olivia S. Mitchell (March 2009), and brought to my attention by investor advocate Ken Kivenko of CanadianFundWatch.com, the authors indicated that in a study of 50+ year old Americans who were administered these three questions:

Only 56% of respondents answered the first two questions correctly
Only 52% of respondents answered the last question correctly

The paper (which you can access from Dartmouth College’s website here) goes beyond just testing these questions, in fact they developed a more comprehensive set of questions and tested a larger range of ages in a study that found a link between financial literacy and retirement readiness.

Ultimate W Expert Challenge Finale

Preet — Mon, 06 Jul 2009 02:14:54 +0000

In case you missed it, the third and final show of the Ultimate W Expert Challenge has just aired and a winner was selected. For those of you who missed it but still want to watch, you can catch it again this Wednesday at 8:30pm on The W Network.

I was just over at Daniela’s place with Marc and Kristine and some of our significant others to watch the final episode together (these were the Ontario based competitors) and we had a great time recounting the trials and tribulations of the filming. It’s amazing to think that about 90 hours of tape went into making 69 minutes (23 minutes per episode) of TV - there’s a lot that you didn’t see.

I’m also happy to say that Daniela is going to write a few guest posts for this blog on ways to save money when it comes to interior design, event planning (weddings), and other topics that I think will be very useful. Stay tuned and thanks for watching!