Investorial

Which Company Is This?

from January 25th, 2006

Signals vs. Noise put up an interesting short Blog asking readers to guess which company this is based on 5 financial stats. Without peeking at the answer, see if you can guess!

767 employees, P/E of 182, operating margin 6.5%, market cap $4.4B, short shares % of float: 12%.

Times’ up! Did you guess yet? Hint: How many companies have a P/E of 182? Did you guess correctly? Head over to Signals vs. Noise for the answer!



RSP ad reviews are coming!

from January 24th, 2006

I would like to get a series started about all the different RSP ads that are popping up for the season. What are the sales tactics of these mutual fund companies to get you to contribute to your retirement savings plans? How can we filter the truth from the marketing?

I’ll give you an example borrowed from Mark Cuban. Mark Cuban said that the smartest marketing that shampoo companies ingrained into the population was the slogan of “Rinse & Repeat”. It’s a genius way to get people to quickly use up your products and buy more! But no studies prove that rinsing and repeating will actually help versus just doing it once, and letting the shampoo bubbles work their magic!

I’m currently collecting any RSP ads in any media (internet, radio, television and print). When I have more spare time, I will examine these scrutinize these ads and I won’t hold back! For our American audience, I would also like to bring to light any type of marketing efforts you see in the Retirement plans, IRAs, 401Ks; whether it be internet articles, or advertising. Please submit to me, any advertising campaign that interests you, Canadian or American alike!



5% GST will mean …

from January 24th, 2006

Now that The Conservatives are elected to form a minority Canadian government. I’m looking forward to Steven Harper’s commitment to reduce GST from 7% to 5%

A 5% GST will mean

  • $2 more in savings in your pocket for every $100 GST eligible purchase.
  • that it’ll be easier to calculate taxes using your head if only GST is involved.
  • that it’ll be much harder to calculate taxes using your head if GST and PST (Ontario) is involved. [Quick! What is 13% of $77.99?]


  • Canadian Election Watch: Tax Promises Part 3

    from January 19th, 2006

    Today’s last installment of the Canadian Election Watch analyzes the New Democratic Party’s (NDP) political promises about Canada’s financial prosperity. For those who joined us late, you can browse through previous articles about The Conservatives and The Liberals here and here respectively! You can also find out who I voted for and why at VinceChan.net! Enjoy and as always, your comments are welcomed!

    Increasing the GST tax credit
    This NDP declaration is in direct response to the other two party’s tactics to reduce personal taxation. (more…)



    Canadian Election Watch: Tax Promises Part 2

    from January 19th, 2006

    In today’s part 2 of the Canadian Election Watch, I will be examining the Liberal Party’s tax goodies. You can check out yesterday’s first part focusing on the Conservative’s tax cut promises. You can also find out who I voted for and why at VinceChan.net!

    Increasing The Personal Tax Exemption
    The basic personal amount of income exempted from taxation is $8,648 in 2005. Paul Martin and The Liberals promise to increase this amount to $10,000 over the next four years. Henry Choo Chong (CGA) states that this translates into approximately $500 of savings in an individual’s pocket, but does not elaborate on whether this is $500 per year, or over the four years. The increase will help all individuals in every tax bracket. My view: it’s going to be more compelling to split revenue with a spouse or pay family members if you are a small business owner! (Example: A small business generating $40,000 and spread it among 4 individuals, and you won’t have to pay a cent in taxes provided these individuals don’t have any other income sources.

    RRSP Reform
    The Registered Retirement Savings Plans are always fodder for The Liberals. (more…)



    Canadian Election Watch: Tax Promises

    from January 18th, 2006

    I was riding the subway today and picked up a copy of The Metro for some light reading. The Money Matters column by Henry Choo Chong (CGA), caught my eye as he answered a reader question about the different tax promises that each party is bringing on their platform for the Canadian election.

    Henry was definitely correct to point out that simply voting for a particular party because of their tax policies is really not the right way to base a decision. Nevertheless, he analyzed 3 major points from the 3 major federalist parties. Unfortunately, the tax policies of the Bloc Quebecois do not offer any substance for the rest of Canada and none of the other independent parties have anything worth saying on the subject of the country’s finance.

    I will do the same for these each political party starting with The Conservatives today, The Liberals tomorrow, and The NDP the day after! Be sure to come back and read my analysis of these tax policies! You can also find out who I voted for and why at VinceChan.net! (more…)



    Group Plan Insurance

    from January 17th, 2006

    I recently saw in a company’s (un-named to protect anonymity) newsletter, this announcement about their group plan insurance. Take a look at this censored excerpt:

    Each year our insurer reviews the cost of our LTD coverage and makes adjustments to the premium based on the claims incurred during the year. Our incidence of disability claims has increased this past year, and as a result of the insurer’s review the premium for your coverage will increase by 10% beginning with the first pay in January.

    For example, if you earn $xx,xxxx annually, your payroll deduction for LTD coverage will increase by approximately $x.xx per month, or $xx.xx per year.

    It is important to understand that even with this increase [company name] employees are still enjoying significant discounts on premiums. You receive a premium discount under the group plan that is not available with individual disability insurance contracts.

    It seems like it is still a great deal right? Well, before you decide for yourself, let’s examine how group insurance works!

    Underwriting
    First of all, Insurance companies are in business to make money! Underwriting is a process that is critical to (more…)



    Financial Blogs Come And Go

    from January 16th, 2006

    One of the more interesting Blogs regarding financial matter I’ve encountered was “Hello Dollar”. However, the articles I saw while I was there were a lot of recycled materials from other books and publication medias that I’ve already seen. I did not subscribe to a feed because I have too many feeds to read a day as it is. Nevertheless, I’ve occasionally check back to see if there will be more interesting posts.

    On my last visit, to my surprise “Hello Dollar” has dissappeared. In its place remains a parking page that simply says that the domain name has expired, but it can still be renewed. I’m tempted to consider taking the domain name as a means to Blog about financial frugality and more personal finance issues. What do you think?

    Update 01/20/2005: Looks like Hello Dollar is back up again! But there are no new posts since October 2005? Is it simply hanging onto life support? Hello?

    More Financial Blogs pop up everday, and also dissappear everyday. Here are a few types of financial Blogs that I’ve been reading. There are some that talk about news/events like Investorial. There are personal finance sites whose themes are more based on personal journey and experience like The Dividend Guy. There are theme sites about personal finance like PFAdvice. A popular theme is also about debt reduction, savings and frugality such as Frugal For Life. There are also financial Blog magazines such as the famous Free Money Finance that’s widely read by many.