Media scan: Week of January 19th

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This week I wrote Tax breaks for seniors and Why locking in doesn’t make sense on retirementredux.com. My “Working it Out” column Give your RRSP contributions a raise was posted on Brighter Life.

Here are some of the great articles and blogs I read, with a special section for analysis of the sudden and unexpected drop in the overnight target interest rate to .75%.

On Money We Have, Barry Choi wrote about 15 Ways To Save Money On Groceries. He says make sure you are not hungry when you go shopping, leave the kids at home, buy in bulk and use loyalty points. Check, check, check and check. We still spend a fortune on food.

Julie Cazzin from MoneySense says there are 7 things you didn’t know about TFSA. Well maybe not 7, but I didn’t realize that you can’t claim the tax credit on Canadian dividends if the stock producing those dividends is held within a TFSA. She says if you have run out of contribution room in your RRSP and TFSA, it may be best to hold your Canadian dividend stocks in a regular, non-registered account.

Mark Seed at My Own Advisor is Still discouraged about retirement although he has a good job with benefits, a pension and more. He says the reality is unless you have the requisite knowledge to put together a well-designed financial plan and you can stick to this plan for decades on end you have every right to feel the same way.

Brighter Life’s Kevin Press asks Sadiq Adatia, chief investment officer of Sun Life Global Investments What’s wrong with the Canadian economy? Adatia identified the long slide in the price of oil and the high debt levels of Canadians, particularly people with big mortgages.

If you have kids, you may be interested in Dan’s blog about How The Children’s Fitness Tax Credit Works. He explains that to qualify, a physical activity must ongoing in nature (at least 8 straight weeks or 5 straight days for children’s camps), supervised by adults; geared towards children; and require significant physical activity involving cardio and either muscular strength, endurance, flexibility or balance. In other words, not stationary video games.

Now let’s take a look at the possible impact of drop in interest rates:

Why the Bank of Canada rate cut may not bring down mortgage costs by Robert McLister at the Globe + Mail says all in mortgage-land are waiting and wondering if Canada’s major banks will actually pass on the rate cut.

The Rate cut is good for variable-rate mortgage holders only according to Romana King at MoneySense. Variable rate mortgages will dip just don’t expect changes to fixed-rate mortgages, she says.

Interest rate cut may boost job creation, home ownership. CTV News quotes Bank of Canada governor Stephen Poloz on who may be the winners and losers. While lower rates could encourage more household borrowing, he suggests that the “far more important effect” will be to provide some cushioning for the decline in household income due to job losses in energy and related sectors.”

The Financial Post reports the Bank of Canada’s rate-cut shocker means good times ahead for some sectors. “If you’re an industrials or especially a manufacturing company that exports, without a doubt you’ve had a phenomenal day,” said Gareth Watson, a Toronto-based vice- president of investment management and research at Richardson GMP Ltd., which manages about $28 billion. “Your cost of financing has just gone lower and your currency has just taken an absolute shellacking.”

Bank of Canada Shocks With Rate Cut “Insurance” Against Oil Slump reports Nirmala Menon at the Wall Street Journal. Canada’s central bank delivered a shock interest-rate cut Wednesday, becoming the first Group of Seven country to slash rates in response to the oil-price collapse and its impact on economic growth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Comments

  1. Thanks for the mention Sheryl! Seems like you’re a blogging pro now!

    All the best,
    Mark

    • I’ve been paid to be a blogging pro for years. Now I’m doing it for free on my own site. Go figure…. :)

      • I’ve seen your work, it’s great Sheryl, but it is fun running your own site. It looks like you’re enjoying it 😉

        Have a great weekend and stay in touch.
        Mark

        • I am enjoying it. Some weeks are more fun than others :)

  2. Thanks for the mention! Funny thing is I would rather spend more on groceries if that meant eating out less. Sometimes though that can’t be avoided, enjoying a nice meal out is worth it every now and then.

    • My pleasure. Just went through a retirement planning exercise. We spend a lot of money on both groceries and eating out. We only live once!

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