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February 08, 2012

Amazon to open real-world store this year: report

Amazon doesn’t need any PR bumps, but let’s give it one anyway, shall we?

A_com_logo_RGBMy favourite Amazon story goes like this: one weeknight in 2010, I caught a late-night showing of The Social Network. Certainly, it was the year’s best movie, and so inspired was I that I came home and said, Hey, I oughtta read the book that was made from.

So sometime after midnight, well into the a.m., I placed an order for Ben Mezrich’s “The Accidental Billionaires.” Before the end of the next work day, it was at my door.

I’m not a paid Amazon advocate, just a fan of its convenience. So why, then, would a service as punctual as the web retailer actually open its own bricks-and-mortar store?

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Posted at 12:36 PM in Consumer news, Current affairs, Shopping | | Comments (0) | TrackBack (0)

February 08, 2012

Are you actually able to save any money these days?

While the U.S. household savings rate averaged nearly 10% in the 1970s and 1980s, it was handily eclipsed by the amounts Canadians were able to put aside for the future. In fact, we were saving close to twice that, way back when.

AdFrugal Canadians, profligate Americans? Maybe, but not any more.

Over the last 12 years, we've been catching up. So much so, that there's no longer much of a difference between the two countries at all.

Over the past decade, most North Americans essentially stopped saving altogether, as the average savings rate has hovered between 3 and 4% in recent years.

But those are the big picture numbers. What's actually been happening in your house? Are you able to put any money aside these days?

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Posted at 06:17 AM in Economic news, Family finances, Frugal living, Saving tips | | Comments (20) | TrackBack (0)

February 02, 2012

Is the retirement age going up, no matter what?

Just a few days after Prime Minister Harper's promise/threat to rework the federal retirement income system by monkeying with Old Age Security, the Conservative government seems to be moving into damage control. Who can blame them?

Ad

The government's opponents are having a field day mauling such a backhanded attempt to balance the budget.

NDP finance critic Peter Julian has been the most vocal, arguing the Conservatives would rather spend millions on fighter jets and prisons rather than support Canadian seniors.

Posturing aside though, if Harper's government was to announce next month that the age at which people will be eligible for OAS was going to increase from 65 to 67 over the next 15 years or so, would you take to the streets?

I doubt it.

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Posted at 06:43 PM in Economic news, Pensions, Personal finance, Retirement | | Comments (71) | TrackBack (0)

January 31, 2012

Is there a better way to handle student loans?

Students and workers seeking retraining are borrowing extraordinary amounts of money through federal loan programs, potentially putting a huge burden on the backs of young people trying to kick start careers.

AdThe government-issued loan program's costs to taxpayers, including provisions for interest relief for unemployed graduates and a default rate of more than one dollar in eight, is somewhere near the $20 billion mark, according to various estimates. 

Clearly, graduating in the weak job markets of 2012 is going to be challenging for a student carrying, say, $40,000 in debt.

Is there a better way? Well, things are certainly different in Australia, for instance.

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Posted at 09:21 AM in Economic news, Education, Personal finance | | Comments (21) | TrackBack (0)

January 16, 2012

Canadians expecting hefty salary increases in 2012: report

Two thirds of Canadians expect that 2012 will be a better year for them at work, according to recruiting firm Randstad Canada's latest global Workmonitor survey.

Ad62% anticipate that a fatter paycheque will provide them with more disposable income in 2012 than in 2011, and 47 % think their employee benefits will improve as well.

That doesn't describe many of the people I talk to, however. But then I don't know a lot of folks who work in the oil patch.

Results from the competing 2011-2012 Culpepper Salary Budget Survey reveal that salary budgets in Canada are projected to rise from 2.76% in 2011 to 2.94% in 2012.

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Posted at 12:59 AM in Economic news, Family finances, Workplace | | Comments (0) | TrackBack (0)

January 09, 2012

Is Ontario's recent tuition fee subsidy a good idea?

At around $6,500 a year, Ontario has the highest average university tuition in the country. However, it looks like the Liberal government is going to make good on its promise to do something about that.

AdUniversity students can save as much as $800 per term if their parents' annual income is $160,000 or less although those enrolled in college-level certificate or diploma programs will see only about half ($365) that.

This new grant is based on the average undergraduate arts and science university and college tuition in Ontario -- which translates to roughly a 30-per-cent reduction for about 310,000 Ontario college and university students.

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Posted at 08:05 AM in Economic news, Education, Personal finance | | Comments (3) | TrackBack (0)

January 03, 2012

Is Canada's real estate bubble about to burst?

Canadian home prices are now showing many of the signs of a classic bubble, according to a recent report from Bank of America Merrill Lynch.

AdFactoring in record low mortgage rates, the housing market nationwide is at least 10% overvalued, say Merril economists. More importantly, under more normalized interest rates, home prices would actually look about 25% overvalued based on current prices, they estimate.

“In our view, the housing market is one of the most vulnerable sectors to this weakening economic environment, showing classic signs of over valuation, speculation and over supply,” says the report. “We are not calling for an all out rout in the market — but caution is now decidedly warranted.”

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Posted at 11:29 AM in Economic news, Home buying, Housing prices, Personal finance, Real estate | | Comments (44) | TrackBack (0)

December 06, 2011

Does Canada's pension system deserve a passing grade?

One year ago, Canada had the 5th best retirement-income system in the world. A year later, that really hasn’t changed much, according to the most recent study of worldwide pension systems by Mercer and the Australian Centre for Financial Studies.

AdThe study measured the overall pension benefits that are being provided to the citizens of 16 countries, the likelihood that those systems will be able to provide benefits in the future, and the integrity of each country's private retirement plans.

And, same as last year, Canada scores decent but not overwhelming marks. In fact, Canada earned a low “B” grade for its pension-plan system, according to the 2011 Melbourne Mercer Global Pension Index, the same grade awarded to Sweden and the U.K.

The Netherlands and Australia earned the highest grades, a B+, for the respective pension schemes. Read the entire Global Pension report here.

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Posted at 09:16 AM in Economic news, Money management, Pensions, Retirement | | Comments (15) | TrackBack (0)

November 28, 2011

Using ­economics to make your ­relationship more successful

In Spousonomics: Using Economics to Master Love, Marriage, and Dirty Dishes, reporters Paula Szuchman and Jenny Anderson attempt to solve some of marriage's stickiest issues by applying the precision of the dismal science to the messiness of relationships.

AdGood luck with that, I thought.

However, while sometimes a bit of a stretch, it is a fun read, assuming you see every relationship having its own little economy, a business of two, if you will, with a finite number of scarce resources that need to be allocated efficiently.

In a chapter comparing economic bubbles to the giddiness of young love, for instance, the authors point out that things change dramatically when the price of something rises far above its actual worth.

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Posted at 07:18 AM in Behaviour, Divorce, Economic news, Family finances | | Comments (1) | TrackBack (0)

November 09, 2011

Are you working more now than you ever have?

Feel like you're always at work? Well, you're not alone.

AdA recent survey released by Towers Watson found that two thirds of Canadian and U.S. companies admit to  asking their employees to work longer hours. And it's slowly killing them.

"In the short run, having employees work extra hours can increase productivity, but in the long run, extended hours can negatively affect employee well-being and retention," Towers Watson’s Laurie Bienstock told Benefits Canada.  

Overall, 60% of Canadian respondents report that employees have been working more hours over the past three years, and just under half (47%) expect this trend to continue over the next three years.

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Posted at 10:33 AM in Books, Business news, Career, Economic news, Unemployment, Workplace | | Comments (15) | TrackBack (0)

November 08, 2011

MSN readers are feeling pressured by inflation: Poll

Three quarters of MSN readers admit to feeling the pinch of rising prices. And the older you are, the higher the apprehension.

InflationAt least retirees' government retirement benefits and (if they’re lucky) pension plans will keep their purchasing power intact over time though. 

However, warn many financial advisors, this isn’t necessarily the case.

“Many of my clients keep needing extra infusions of income, even though their private pension, Canada Pension Plan and old-age security income is indexed to inflation,” advisor Christine Butchart told Investment Executive.  

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Posted at 11:10 AM in Economic news, Inflation, Personal finance, Retirement | | Comments (1) | TrackBack (0)

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AUTHORS
Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...

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