Category: Announcements

Christmas is coming up quickly – Happy holidays in advance!

I haven’t decided my posting schedule yet, but it will likely be light(er) than usual for the next 2 or 3 weeks.

On with the links

Tim Ferriss is well known for his 4-hour work week.  But maybe Ferriss is just a big fraud?

This won’t be funny if you don’t know what a lifestyle blogger is, but here are the 17 steps to instant success as a lifestyle designer.

Andrew Hallam came up with the biggest loser financial challenge – interesting!

Canadian Capitalist takes issue with Jon Chevreau who said that active management is alive and well.

Canadian Couch Potato also disagreed about Dynamic’s fund performance and says that picking successful hockey players is much easier than successful mutual funds. Perhaps you just need to pick funds run by portfolio managers that are born early in the year? 😉

Boomer and Echo says that passive index investing is for the birds.

Michael James came up with a clever way to replicate the great performance of select Dynamic mutual funds.

Jim Yih asks if you are a bull or a bear when it comes to dividend stocks. I think dividend stocks are fine, but they are no magic bullet.

The Oblivious Investor had some interesting observations about stock mountain charts.

Larry MacDonald did a book review of Tom Bradley’s new book – “It’s not rocket science”.

My Own Advisor shows that he made some good progress on 2010 financial goals.

Million Dollar Journey suggests that lending money to friends, probably isn’t a good idea.

Investing Thesis hosted the Canadian finance carnival. Lots of great articles.

Warning – foul language: This ad in Craiglist is for computer repair – very unique.

A few American links

• Should I Diversify Among Brokerage Firms?
• Home Staging Tips: A Guide to Staging Your Home from Moolanomy — First impression is everything. An empty house is too bare and a cluttered house doesn’t look every good. Learn how to make your home look just right for prospective buyers.
• Should I Use a Debit Card or Credit Card? Frugal Dad examines the pros and cons of both credit cards and debit cards.
• 10 Tax Deductions You Don’t Want to Overlook: As 2010 draws to a close, it’s time to start thinking about taxes – here are some deductions you don’t want to overlook.
• Best Small Business Credit Cards – Have a small business? Consider one of these cards to help provide the cash flow flexibility to meet the needs of your growing small business. Provide purchase protection and earn rewards too.
• Keep Your 401k Safe from Employer Fraud By Wealth Pilgrim
• 2011 Marginal Tax Rates: Will We Keep The Same Rates, Or Will Taxes Go Up?
• Online Savings Accounts Rates Suck– What Can I Do?
• Buying Organic Herbs in Bulk and Saving 90%
• How Much House Can You Really Afford?
• 6 Things To Consider When Moving For A Job. Moving for a job can be a bad thing, or a great thing. Make certain you make that decision with your eyes wide open.
• PerkStreet Free Online Checking Account – Review – Perkstreet offers free online checking as well as cash back rewards for purchases.
• Best Military Movies Giveaway. Share your favorite military movies and enter to Win $100 in Amazon Gift Cards!

I recently had the pleasure of talking with Dianne Nice of the Globe & Mail about year-end tips for RESP account.  You can read the entertaining article called: When it comes to your RESP, keep your eye on the ball.

Long after Barbie’s shoes have been sucked up the vacuum, their RESP money will still be growing, thanks to government grants and compounding interest. What could be more magical than that? (Hint, hint, grandparents.)

Awesome book review

Eric Schultz who writes at 2 Fat Dads, wrote a very complimentary review of The RESP Book.

I think this book will remain the RESP bible for quite some time.

Eric made a good point that the extra grant rules for for Quebec and Alberta residents could have been combined in one chapter.  In fact, my original draft did have these two topics in one chapter, but one of my editors pointed out the LAC federal publishing rule that any technical information regarding Quebec has to be kept in it’s own distinct chapter.

Thanks a lot to Dianne and Eric for the column and review!

As I mentioned recently, I bought a flat screen tv.  I also picked up a articulating wall mount, which allows the tv to be moved around.  I needed it because I wanted to put the tv in a corner.  It ended up being a minor construction project since the plate which you attach to the wall was too short to cross two studs.  I built a frame which you can see in the picture.  It was a bit of work, but after it was done – attaching the tv mount and tv was a piece of cake.  Of course I had to do one extra Home Depot run to buy attaching bolts.  The ones that came with the mount were for a concrete wall.  Who has concrete walls?

On with the links

• Larry MacDonald wrote an excellent article on RESPs for Canadian Business called “Ins and outs of RESPs”.   He includes quotes from quite a few bloggers, including myself.
• Do Not Wait came up with a list of money books which would make good Christmas gifts.  Guess which RESP book made the list?
• One of my favourite writers – James Daw of the Toronto Star retired – here are his final words of advice.
• This lady hasn’t paid her mortgage in 25 years and has successfully fought off foreclosure. This is crazy – it’s like a renter who doesn’t pay the rent for 25 years because the landlord won’t replace a lightbulb.
• Investor Junkie wrote a great post called You’re still an idiot even after college.  You can get a degree and still be stupid.
• John Heinzl analyses the new BMO market-linked GIC that has only one winner – BMO.
• Angela Self came up with some scenarios where you shouldn’t save for retirement.
• The Star reports that CSI (Canadian Securities Institute) won’t help subsidize high school kids who want to take the CSC. While I don’t think it should be up to a private company to subsidize public education, is it not possible for a school board to work out a deal for a group discount? Or better yet – develop your own curriculum – they can hire me to help with this endeavor.
• Canadian Capitalist lists some 2010 Christmas gift ideas for finance enthusiasts
• Jim Yih takes a look at the Canada Pension Plan debate.  I agree with Jim, the CPP is in good shape.  Leave it alone.
• Ever wanted to write a novel?  Run a marathon?  Build a house?  John Scalzi says to get going on it or don’t bother.
• Interesting look at Niagra Falls, the bad.  A tale of two cities.
• Larry Swedroe says that active managers are lagging their benchmarks.  What else is new?
• Malcom Gladwell said that successful hockey players have their birthdays early in the year.  Frances Woolley proves that birthdate doesn’t matter.
• Have you heard of the Twinkie diet?  Apparently it works.
• I used to have fancy sports car with a really loud stereo, that I kept clean as a whistle.  But as Peter Cheney writes – you can have a nice car or kids – but not both.
• Back in the good old days, people used to write letters in two directions to save paper.  Check out the neat picture.
• The Oblivious Investor says that Ally Bank had a hissy fit over one of his posts.
• Canadian Personal Finance Blog says that splurging to reward yourself is dumb.
• Preet says that we are emerging from a Mancession.
• Michael James says we should be giving used toys. I agree, but the logistics make it too hard.
• Larry MacDonald came up with four alternatives to RESPs. Some interesting ideas.
• Million Dollar Journey is 4 years old and hosting a great contest.

A few American links

• It’s Not Too Late to Claim Energy Efficient Home Improvement Tax Credits – Some home improvements can net you a tax break but you have to hurry in order to save on your 2010 taxes.
• How to Get Costco Membership at a Discount – Should you become a Costco member? If yes, here are ways to get membership at a discounted price if you wish to join the club.
• Annuity Payouts: Why are they higher than bond rates?
• Don’t Storm The Fortress to Get A Job With post-recession unemployment figures the worst since World War 2, some job hunters are tempted to become more brazen in their attempts to find full time employment, but storming a fortress isn’t the best way to impress most employers.
• To Pay Off Debt or Save? That is the Question Frugal Dad attempts to resolve the age-old argument between savers and debt slayers.
• Comparing Index Funds and Mutual Funds. Do you know the difference between index funds and mutual funds?
• Increase Social Security Benefits. There are a few ways to easily increase your Social Security Benefits.
• 3 Weekend Jobs that Pay $50 an Hour or More
• How to Review and Improve Your Auto Insurance Policy – The step-by-step guide to a more affordable auto insurance policy.
• What is an HSA health plan? – A look at the popular health savings account (HSA) that offers a nice tax benefit.
• Five Year-End Financial Moves to Make Today – Why wait for the new year to get started on your financial resolutions? Make a few key moves today and save big next year.

Mike Piper from the Oblivious Investor has come out with a book about retirement planning called Can I Retire? Mike has written several book covering various investment topics and American taxes.  This particular book is aimed at investors who are trying to figure out how much money they need to retire and how to manage that money in retirement.

If that description sounds familiar, it’s because the general topic is the same as Pensionize Your Nest Egg.

The main difference with Can I Retire? is that it is a lot simpler than Pensionize Your Nest Egg.  It also has more actionable plans which an investor can put into place without being an investment expert.  Where PYNE recommends seeking an advisor for specifics, this book tells you exactly what to do.

The book is written for an American audience, however Canadians would benefit from reading it as well, since Mike does a good job of simplifying the basics of retirement planning.  If I ever get around to doing my own retirement planning book, it will look something like Mike Piper’s book.  If you are American, I highly recommend this book.

On with the links

Rob Carrick has some suggestions for easy online foreign currency exchange.

Squawkfox shows how to dress up your Christmas table real nice.

Gelasia Steed, CFP explains what to expect from a financial planner.

Million Dollar Journey’s net worth just keeps going up.

Canadian Capitalist asks if black Friday is worth the hassle. Not for me, but I think some people like the sporting or social aspect.

Michael James says that there is shortage of fee-only advisors because of designation requirements.

Larry MacDonald says that US defence companies are a geo-political hedge.

Canadian Personal Finance had a funny post listing gifts you should never, ever get your kids.

Jim Yih says that exercise and good health will help with your retirement decisions.

My Own Advisor shows some pictures from his Argentina trip. Great writeup.

The Oblivious Investor says that index funds don’t mean stocks. This applies to ETFs as well.

And even more links

• LIFE Can Mess Up Your Budget – You create a budget yet things still don’t add up. Here’s why.
• Choosing a Lender: Tips to Help You Make Informed Student Loan Decisions
• How to Debrief Yourself After Interview Rejection If your interview didn’t go the way you’d planned, use these “debriefing” questions to help prepare for your next interview. And remember: persistence pays off when it comes to your job search.
• Why Budgeting is Like Dating – Budgeting can be exciting when you first begin. However, like so many relationships the budget begins to have cracks, then flaws, then serious issues. If you can’t overcome and work with these issues, much like dating, it will soon end in heartbreak.
• How to Become More Self-Sufficient – Channel your inner handyman by following these tips to self-sufficiency.
• Home Office Insurance: Do You Need It?
• FICO 8 Mortgage Score Could Make it Harder to Get Approved. The new FICO 8 mortgage score can make it more difficult for some people to get approved for a mortgage.
• USPS Holiday Shipping Cut Off Dates for Military Members. Do you have a friend or family member stationed overseas? Then you need to plan ahead if you want Christmas packages to arrive in time for the holidays!
• President Obama Appoints Geithner and Lew To Negotiate A Resolution To Bush Tax Cuts
• What a Real Job Can Do For An Entrepreneur

See a comprehensive Mint.com review.

I do a lot of networking with other bloggers – one of the issues that has come up over the past year has been non-payment for services from Mint.com.  I haven’t done any business with them myself, but I’ve had to listen to endless complaining from my various blogger friends – both Canadian and American, about how they sell links to Mint.com and they don’t get paid for them.

Finally this week – Debt Kid wrote a story about the issue and called out Mint.com for non-payment in a post called “Mint.com can’t seem to pay it’s bills“.

Given that Mint.com is a money-management website, it seems like an odd way to do business.  They were acquired recently by Intuit, which is a first-class organization, so hopefully Intuit can straighten things around.

 

On with the links:

For those of you interested in book self-publishing – I did a cost comparison of several self-publishing companies – Self-publishing company comparison: Amazon CreateSpace, Lulu or Lightning Source.

Michael James came up with a useful cell phone feature. I’d amend this to just give a warning if I’m going over certain limits, rather than shutting down.

Jim Yih reviews Investing is not rocket science. Jim also reveals his own book coming soon.

Million Dollar Journey brags about paying off the mortgage in 3 years. Ok, now I really hate FT! Kidding – congrats on the great accomplishment.

Larry MacDonald says that DIY investors sometimes focus on fees too much. I think for smaller portfolios, fees are not as important if the advisor is providing good advice.

Boomer and Echo are determined to make us understand life insurance.

Canadian Personal Finance talks about holiday regifting in families

Canadian Capitalist warns that insiders have an advantage in the stock market

I wrote an article for Moneyville (Toronto Star blogging site) about the scary post-secondary educational cost estimates that you see in the media from time to time.  While it is expensive to go to college or university, things are not as bad as they seem. 

Please check out the article – Debunking 8 myths about university costs.

I bought a plasma tv recently.  This may not seem like a big deal for most of you, but I have been thinking about buying a flat screen tv for over a decade.  In 2000, I couldn’t decide what kind of flat screen to buy and I ended up buying a 27″ tube tv instead – it was awesome.  The tv it replaced was older than I was, had no remote and the channel changer was broken, so I had to use pliers to change the channels.  I finally replaced it when I couldn’t see the score during football games.

The 27″ tv was still ok, but the colour and screen were fading.  When I saw a 42″ plasma for sale at Best Buy for $550 a month ago, I knew my time had come.  $650 with tax!  It was so cheap, it would have been financially irresponsible not to buy this tv.

The moral of this story is that sometimes it’s good to wait.  🙂

Funniest post

The funniest post of the week was written by Financial Uproar – a very entertaining blogger who has never heard the term “politically correct”.  His article on the five hottest women on business tv is just plain funny.  Read it even if you don’t want to look at the pictures.

On with the links

Oblivious Investor says that index funds are mediocre.  Luckily “mediocre” is the new black.

The Globe & Mail had some good investing articles this week:

• Women face challenges in retirement because they live longer
• An investment policy statement is a good idea
• Hiring a money coach to get your finances back on track

Adam Goodman from Moneyville.ca explains how to save $7,000 without pain.

Million Dollar Journey had a guest post how much does a year of happiness cost? Good post and great comments.

Free From Broke writes about his daughter’s allowance.

Canadian Capitalist warns that new financial products can have a short shelf life. He’s referring to high interest saving accounts.

Rob Carrick has some great advice for DIY investors. Get that cash invested!

Michael James tells us how to negotiate a line of credit. I think the only way to get a better rate is to move to another bank.

Larry MacDonald has a list of books that would make a good Christmas gift. Unfortunately I think he left my book off the list. 🙂

• Studenomics asks if student debt is good debt.
• International Bond ETFs: Should You Own Them?
• It’s Time for a “Virtual” Reality Check Are advances in technology really a good thing? Jason provides nine arguments against modern conveniences.
• FREE 2011 Calendar and Day Planner Download. Check out the cool FREE goal setting and planning calendar designed by Ron at The Wisdom Journal (pdf format).
• Flexible and Health Savings Account Changes for 2011 – Over the Counter Medicine Reimbursement
• Which Debt to Pay Down First? – When trying to pay off debt, it can be difficult at first to know where to start. This article will help you decide where to start first based on your circumstances.
• How Much Of a House Payment Can You REALLY Afford? – How much better off financially would our society be if we lived within our means? Buying a house in your price range is no exception.
• The Great Big List Of 75 Frugal Gifts You Can Give This Christmas
• Three Ways To Make a Killing Without a College Degree
• 25 Christmas Gift Ideas Under $50. A few fund and inexpensive holiday gift ideas.

I want to tell you a little secret.  I really like it when people say nice things about me.  🙂  That’s one of the reasons I’ve enjoyed reading all the various RESP Book reviews, because they have all been pretty positive.

But this RESP Book review by Krystal Yee, who writes at Gimme Back My Five Bucks as well as Moneyville.ca was super-nice.

Not only is Mike Holman an amazing writer, but he was one of the bloggers I really looked up to when I first started my personal finance journey. And now, years later, I couldn’t be more excited to review his new book, The Complete Guide to Registered Education Savings Plans for Canadians.

Mike makes learning about RESPs so easy. Unlike a lot of other financial guides which are dry and hard to understand, he writes in a clear, straight forward manner. This book is a fantastic guide for anyone interested in learning more about RESPs.

Thanks so much, Krystal.  Krystal is also holding a contest for a free book, so head on over and enter.

Preet Banerjee from Where Does All My Money Go and the Globe & Mail also reviewed my RESP book.  I have to say that Preet’s review is the one review most like the book itself.  Short, to the point, and tells you all you need to know.  🙂

Here’s what you need to know: This is a very straight forward book on Registered Education Savings Plans and the information is solid. If you have kids and are interested in helping them out with funding their higher education: get the book. Don’t ask questions, just plunk down the $15.99 to Amazon.ca and get the book. In my opinion, you won’t regret it.

Thanks Preet!