- Comments (9)
- Text Size: Down Up
moneysense.ca, 8/03/07
This and That
- It was widely reported in the press that the Canada Revenue Agency is experiencing glitches with electronic tax filing for individuals. The agency has posted a list of facts that taxpayers should be aware of on its website.
- While there is much hue and cry over high ABM fees, there doesn’t seem to be much protest over the high monthly bills for cellphones in Canada. The Globe and Mail reports on a new study that the high fees are discouraging widespread adoption of cellphones. Instead of regulation, the government should ensure a competitive marketplace by opening up the sector to foreign competition.
- This week, the Bank of Canada decided to keep interest rates steady and the prime rate charged by the banks stays at 6%. The wording of the announcement suggests that the Bank is likely to maintain the holding pattern at its next meeting.
- We could endlessly argue if a mortgage paydown is better than a RRSP but RRSPs become a clear winner if your employer makes a matching contribution. A recent press release from Sun Life Financial points out the many advantages of group RRSPs and says more than 50% of employees fail to take advantage of them. It is not clear how many employees fail to take advantage of a matching contribution but it is foolish to give up free money.
- Warren Buffett is not alone in advising investors to stay clear of hedge funds. A new study shows that investors are better off with zero allocation to hedge funds. The main culprit: the high fee structure.
- Rob Carrick writes about five ways to invest in China. James Daw writes in The Star about getting exposure to India, though he omitted mentioning IIF and IFN, the closed-end funds that are traded in the NYSE. I am not sure why investors would really want to risk exposure to individual emerging markets. A fast growing economy should not be confused with a rising stock market.
- Canadian Dream featured a guest post by Margot Bai in which she urges Canadians to beware of the conflict of interest inherent in financial advice given by commission-based advisors.
moneysense.ca, 8/03/07
Apparently people will soon be able to switch cell phone providers while keeping the same phone number. This should help competition.
Hey CC,
How have you been finding ETrade? If I recall correctly, you were thinking of changing over to them?
I am thinking of switching out of BMO Investorline to ETrade, but even during the recent market plunge and recovery, I still haven’t seen any “bargains”. So, I still have some time to set up the new account. I just wanted some feedback as to your opinion of ETrade.
Phil: I was planning to move to TD Waterhouse and I still haven’t finished the paperwork, so I’m still with RBC Direct. I have an E*Trade account through work (for the ESPP program) and find that they are a good choice if all you are interested in are equities. I have to say that their Cash Optimizer account is impressive and pays 4.75% for a USD account. Nice place to park your money if you patient for opportunities.
Re: Point # 4.
Couldn’t agree more. I work for a well known company with 2000-3000 employees. Not only do I get a good pension plan but I also take part in the Group RSP. The company also offer purchase of company stock and for every $400 you invest they give you $100 for nothing. In the Group RSP(tax deducted at source), I am able to invest in mutual funds where the management fee is around 1%. What a deal.
The unreal part of all this is that there are so many people in my office that are blissfully ignorant of this huge benefit.
[4] is a bit misleading, from Sun’s release: [Since many of these plans include company matching of employee contributions...]
Since not ALL plans have a company contribution, there might not be any advantage of using them instead of a personal RRSP.
I have a relative who works for a “big 5″ bank, and they get a group RSP matching(not sure as to the %) as well as a stock purchase plan of 5% of pay matched by 50%.
Though I would never give it up for my Defined Benefit Pension.
As for cell phones, yes “Number Portability” is supposed to take “effect” March 14, 2007 according to CRTC rules.
I moved from the US about a year ago, and was nothing short of staggered by cellphone charges. It really is a disgrace.
CC,
Thanks for the link.
CD
Jon D: I work for Canada’s oldest “big 5″ bank, and we have the stock purchase plan described, but *also* a Pension plan. Best of both worlds, I guess. Although I’m sure our Pension doesn’t compare to that offered to Federal Government employees.