6 fun ways to bring the sunshine to you

Are you feeling like winter will never end? At this time of year when the winter blahs are catching, the best remedy is a little sun, sand and surf. But if a beach holiday is beyond your budget, there are lots of fun activities you can do at home that will bring the sunshine to you. Try a few of these hot ideas to help you make it through to spring.

 

Host a Hawaiian theme party. Say an early “Aloha” to spring! Invite friends over, welcoming them with leis and fruity umbrella drinks—try Michael’s for party supplies. Serve pineapple, mango, banana bread, and other luau delights, and be sure to check the Save-On-Foods, Loblaws and Sobey’s flyers for weekly specials. Don’t forget the loud, brightly coloured shirts!

 

Plan a sunshine movie night. Watch movies set in sunny locales. Try the recent Couples Retreat or old favourites like Shirley Valentine, Cocktail, Summer Rental and more—see the Wal-Mart flyer for movie deals. Then just add shorts, flip flops and snacks.

 

Play at an indoor water park. Take the family for a slipping, sliding day of fun at an indoor water park. There are several to choose from in the Niagara region. Be sure to check Flyerland.ca for travel specials and savings.

 

Escape for the weekend. Take advantage of the travel deals on Flyerland.ca, and book your weekend stay at a hotel with a pool—don’t forget to pack your swimsuit. You can relax by the water and pretend you’re in a tropical destination.

 

Treat yourself to a spa day. A day of pampering always makes the sun shine brighter so visit the spa with your friends or spouse. Turn up the heat by taking a soothing sauna or unwinding in the hot tub and create a spa at home. Check out the Shoppers Drug Mart flyer for all your spa necessities!

 

Get outside! Enjoy the great outdoors by taking a hike or planning a ski day. This is a wonderful time of year to be outside in the fresh air. If the sun is shining, put on your shades and indulge in a little après ski on the patio.

 

By Debbie Frye, General Manager, Flyerland.ca

Is it time to fire your bank?

I've been known to fire a few big banks in my lifetime. My reasons for giving each banker the pink slip come down to dollars and cents. If a bank fails to give me great service at a fair price, then I'm swift to give them the boot.

My knack for switching banks is highly uncommon in Canada. According to a Nielsen study, we Canadians are the most loyal banking bunch in the world, with the majority of us failing to shop around by stepping outside our branch's front door. There are costs to staying with a bank that keeps sticking it to you though. Here are three reasons to fire your bank:

1. Fees, fees, and more fees

If you're like my friend Greg, then you must love paying high bank fees. Over the last 12 years, Greg has paid $60 a month in fees for the privilege of keeping his account at a big bank. Doing the math, that's a total of $8,640 in banking fees -- before adding his loss in compound interest.

Are you unsure how much you're paying in bank fees? I dare you to add up the little dollar dings and face the damage. Looking at a year's worth of statements can reveal these costly culprits: monthly account fees, minimum balance fees, overdraft protection fees, debit card transaction fees, wire transfer fees, ATM fees, online banking fees, additional cheque fees, teller fees, and a myriad of other miscellaneous fees specific to each bank.

If you're fed up with paying fees, then consider switching to a no-fee chequing account to cut costs. Saving even $12 a month adds $144 to your yearly savings. Other alternatives include online banks and credit unions -- see the Financial Consumer Agency of Canada to help you select a banking package specific to your needs. Or ask your current bank for a better deal, many offer tiered packages depending on your use.

• Looking for more ways to save money? Here are 50 Ways to Save $1,000 a Year

2. Higher Interest Rates

Giving your bank an interest-free loan is silly, but that's what you're doing whenever you deposit cash in an account with a minuscule interest rate. Banks make their money by lending your money to other customers in the form of loans or mortgages, earning interest on the payments. By switching to a bank with a high interest savings or chequing account, you can improve your current 0.1% rate to 2.0%, even in these times of record low rates. Check out Globe Investor's list of current rates to find a more competitive chequing or deposit account.

3. Customer Service

A pattern of poor customer service should be cause enough for banker dismissal. Banks with consistently bad in-branch help, long telephone queues keeping you on hold forever, and a lack-lustre record of helping you with your financial needs should be fired. There's no reason to stay with a bank when you can easily take your valuable business elsewhere. It is your money, after all.

Your Turn: Have you ever fired a bank? Do you pay excessive bank fees?

This Week's Can't Miss Deals

Look like a million without spending a fortune

While it’s true that real beauty is on the inside, the fact is, most women want to look their best on the outside too. But to stay gorgeous and glowing from head to toe you need hair care, skin care, make-up, body treatments and more. Beauty products can add up to a big expense that can easily blow your budget. With these tips and tricks, you won’t have to spend a fortune to look like a million.

 

• Shop the sales. Be sure to check Flyerland.ca for weekly flyers from London Drugs, PharmaPlus and Rexall and stock up on your preferred products when they’re on sale. Or try a different brand when there’s a bargain—you may discover a new favourite.

 

• Play the points programs. Be sure to register for the loyalty programs at your regular stores such as Shoppers Drug Mart. With everyday purchases you can accumulate points and save on more expensive products.

 

• Get your gift with purchase. Buy your more costly beauty items during bonus time to qualify for a free gift from Sears and The Bay with Lancôme, Clinique and many other favourites. Gift with purchase offers let you sample new products. You can keep the ones you like best and trade with friends.

 

• Save dollars on scents. Perfume sample packages are a great way to try fresh fragrances without spending big bucks. They’re the perfect size for travelling or you can give them as gifts.

 

• Take expert advice. Magazines often have features comparing brands and uncovering the best kept secrets in beauty buys. Bargain brands can be as good as pricey products so give them a try—you may be pleasantly surprised.

 

• Host a home spa day/Avon party. If you can’t get out to the spa, bring the spa home! Invite a few friends over and ask them to bring the products they love best so everyone can share. Or, why not host an Avon party and learn the latest trends and make-up tips from an expert in the comfort of your own home. Healthy snacks, beverages and great conversation make the day complete.

 

• Plan a product swap. We’ve all bought beauty products that haven’t been the best choice for us. If you have some barely used items cluttering up your bathroom cupboard, clear them out and plan a swap party with friends. Just be sure the products have not expired.

 

• Try tools of the trade. Compare prices on the hottest tools you use every day—hair dryers, curling irons, flatirons, hot rollers and more from Walmart or Zellers. It may be time to replace the old one, but it’s also good to have a backup so buy a spare when you find a sale.

 

• Check out dollar store deals. Every day you use items for makeup application and removal such cotton balls, swabs, pads and wipes. Buy these items at dollar stores for big savings.

 

• Get organized! Check out stores like Solutions for baskets and boxes that will help you organize your beauty supplies to keep products and tools at your fingertips. They make attractive decorations too.

 

 

By Debbie Frye, General Manager, Flyerland.ca

3 Terrible Investments To Avoid

Figuring out how to invest your hard-earned money can be a challenge. With fund companies, banks, and financial advisors all looking to invest your retirement dollars, the choices can be overwhelming and it's not hard to be sold an investment that's loaded with fees and light on returns. Since keeping more money for yourself is always a good retirement strategy, here are three types of investments you should avoid at all costs.

1. High Fee Mutual Funds

Investing in a high-fee mutual fund will cost you. Mutual fund fees called management expense ratios (MERs), loads, and trailer fees all drastically decrease the return you see each year.

• Check out the Mutual Fund MER Calculator to tally the true costs of fees. You may be surprised!

Not only do you lose the money for paying these fees, but over time you also lose out on the compound interest you would have earned. With many Canadian mutual funds charging investors a 2.5% MER and higher, it's shocking to see how paying even 1% less can save you thousands and help you retire sooner. For example, let's look at the costs of a MER:

• $100,000 is invested over 25 years with markets returning 6% per year. With no fees, this would be $429,187.
• With a 2.5% MER you pay $101,182 in fees, keeping just $227,909 at the end.
• Reducing these costs by 1% you end up with $294,139 -- that's $66,230 more.

Checking a fund's prospectus for costs and asking your advisor for low cost mutual funds can save you tens of thousands of dollars.

2. Principal-Protected Notes (PPNs)

If your financial advisor is trying to sell you a PPN, then you'd be wise to seek new help. PPNs are often sold to risk-averse investors since they guarantee the invested principal while offering returns on underlying investment products, such as mutual funds, hedge funds, and baskets of equities including stocks. Here are just a few perils of PPNs:

PPNs are expensive. Many have an up-front sales commission of 5% plus a MER of around 2%, which includes a hefty trailer fee to the person who sold you the PPN. MERs depend on the issuer but this fee is standard and erodes your investment over time.

PPNs lock you in for years. PPNs typically mature in 3 to 7 years or longer, and a lot can happen to your financial situation during that time. If you need to sell, be prepared to lose the guarantee on your principal and pay stiff penalties for selling early.

Lack of clarity about returns. Even after the Government of Canada's attempt to improve transparency of PPNs, the media's warning cry is still loud and clear. In his book, What’s Good, Bad and Downright Awful in Canadian Investments Today, financial author Rob Carrick says that PPNs still lack clarity since issuers often skip over your market exposure, making it difficult to know how much the underlying investments have to make in order for you to beat the returns of a GIC or bond. "PPN issuers don't answer these questions," says Carrick.

Financial author Gordon Pape is not of fan of PPNs either. In Be wary of PPNs, Pape calls them "an opportunistic marketing gimmick designed to play on your anxieties. Avoid them."

3. Guaranteed Investment Certificates (GICs)

So you think GICs are risk-free? Think again. A guarantee on your investment plus a fixed rate of return comes with a serious downside -- inflation. With the current inflation rate at 1.9% and the big banks offering around 2.0% on a 5 year GIC, it's impossible to retain your buying power over time.

To avoid the results of a GIC Horror Show, Duncan Hood says the "safest place to put your money isn't in any single place, but in the broadest, most diversified portfolio you can construct."

• Want to avoid more financial pitfalls? Check out 3 Costly Life Insurance Policies to Avoid

Your Turn: Ever get sold a confusing investment? Do you know how much you're paying in mutual fund fees each year?

7 ways to win with a lucky cash windfall

The odds of striking it rich by winning the lottery are slim. But a smaller cash windfall in the form of a company bonus, an inheritance, or a tax refund is a far more likely scenario for many Canadians. So what do you do when you hit the jackpot and land a lucky cash windfall? Here are 7 smart ways to deal with the cash and not regret it in the morning.

1. Pay Off Your Credit Cards

I don't mean to rain on your moneyed parade, but paying off your high-interest debt and killing your credit card balance is a smart use for found cash. There's no financial investment that can beat the guaranteed 19% or higher after-tax return of eliminating your credit card debt.

Think you'd rather hit the shops and splurge? Try this free Credit Card Calculator first to see how much your plastic is really costing you.

2. Settle Your Car Loans, Lines of Credit

After eliminating your high-interest debt, take an honest look at the costs of carrying your lower-interest debts, such as car loans and lines of credit. Paying down these debts with a windfall could get you out of the red and into the black fast, giving you more options in your financial future.

3. Pay Down Your Mortgage

If you're free from consumer debt then you're really in lucky territory. Consider adding your new found cash to your mortgage so that you can own your home sooner. If you've got a mortgage with prepayment privileges, then 100% of your paydown goes to principal, and you'll drastically reduce the amount paid in interest to the bankers.

4. Ramp Up Your RRSP

You want to retire, right? Well, investing your windfall in your RRSP not only reduces your taxable income, but helps your money grow tax-deferred. This 5 Minute Guide to Your RRSP is a great place to learn more about contribution rules, and these 3 Places Worthy of Your RRSP Account offer a few places to stash your cash.

5. Top Up Your TFSA

It's a good idea to have some money put away in an emergency fund for a rainy day. A good place to shelter your money is in a Tax-Free Savings Account, where you can save up to $5,000 of your windfall annually and pay no tax on earned income. Need convincing? Here are 5 Ways a Tax-Free Savings Account Can Make You Rich.

6. Invest in Your Child's RESP

Investing your company bonus in your kid's Registered Education Savings Plan (RESP) won't get you a tax refund, but the investment earnings grow tax-free as long as they are in the plan -- plus, you can qualify for up to $500 per child each year in government grants. How's that for a bonus?

7. Go Ahead -- Spend It!

If you've made it this far down the list and you're debt-free, then go ahead and spend your windfall. Life is short and a simple splurge is well-deserved when your debts are paid in full and you're in excellent financial shape.

Your Turn: What would you do with a financial windfall?

March Break fun that won't cost a bundle

It’s almost that time of year when the kids take a break from the books for a fun-filled winter week. Your family may be heading south to a sunny destination for March Break, or maybe you’re still hoping to get away! If you’re staying closer to home, there are tons of awesome activities to be found right in your own town. Here are some top tips for taking a well deserved break…without breaking the bank.

• Take a last minute holiday. There is still time to book a “fun in the sun” getaway the whole family will enjoy. Check out Flyerland.ca for daily alerts in Travel Specials. Daily travel alerts and My Holiday Home Rental in Florida www.flyerland.ca.

• Save on “staycations”. Holiday at home with Attractions Ontario and receive up to $850 in savings on popular Ontario entertainment venues. A few dollars in discounts here and there can add up to big savings—and big fun!

• Day tripping. Instead of spending the week in front of the TV or computer, get outside and get active! Plan a day trip and take the gang to Bird Kingdom or go cross-country skiing, snowboarding, ice skating or hiking.

• Special city savings. Spend a day in the city…and stay the night! Explore your local cities and take advantage of super savings on weekend hotel stays. See Flyerland.ca for the best deals near you.

• Mid-week dinner deals or lunches for less. Check with your favourite restaurants for dinner deals during the week and treat the whole family to a night out! Or go for a day of shopping and take the kids to lunch—it usually costs a lot less than dinner.

• Movie night sleepover. Host a movie marathon complete with sleeping bags, PJs and lots of popcorn! Check out Wal-Mart, Rexall Pharma Plus and Shoppers Drug Mart for great deals and savings on DVD’s and snacks—visit the Flyerland.ca site for special deals.

• Let the games begin! Bring out the classic board games for a day of fun! Get everyone together for a Monopoly Match, Twister Tournament or Sorry Showdown. Stores including Zellers and Wal-mart offer discounts on toys and games—check their flyers on Flyerland.ca.

• Plan a theme day. Do your kids love baking, crafts, sports or have other special interests? Create a theme day by planning events around their favourite hobbies. Check out Michaels, Fabricland, Sportchek and SportsMart for all supplies.

Do the new mortgage rules go too far?

The rules for buying a home and refinancing a mortgage have changed. On Tuesday, Finance Minister Jim Flaherty announced tightened measures to prevent homebuyers from getting into financial trouble when interest rates rise.

• Try the Mortgage Calculator to see the real impact of rising interest rates.

Those most affected by the new rules are maxed-out homeowners looking to roll consumer debt into their mortgages, and real estate speculators flipping numerous properties. Flaherty's three new mortgage rules take effect on April 19, 2010. Here is what they mean for you.

Rule 1: New five-year fixed rate mortgage standards

Under the new rules, borrowers must meet the standards for a five-year fixed rate mortgage, even if they choose a mortgage with a variable rate or a shorter term. This change is meant to protect prospective homeowners from rising interest rates in the future, but it could make qualifying for a mortgage more challenging.

For example, even if you opt for a variable-rate mortgage with today's interest rate of around 2%, then you're still required to afford today's five-year fixed rate of 3.89-5.39%.

You are more likely to get a preferred mortgage rate if you have good credit. Be sure to check your credit report and raise your credit score before meeting with lenders.

Rule 2: New refinancing limits

The second rule lowers the maximum amount homeowners can borrow when refinancing their mortgages to 90% of the value of their home, from 95%.

"We want to discourage the tendency some people have to use a home as an ATM," said Flaherty.

Rule 3: Bigger down payment required for speculators

The third rule requires a minimum down payment of 20%, raised from 5%, to qualify for government-backed mortgage insurance on non-owner-occupied properties. This final change is aimed to "discourage reckless real estate speculation," said Flaherty.

Regular homebuyers are not affected by this rule.

Minimum down payment and 35-year mortgages unchanged

Canadians scrimping to save the minimum 5% down payment and looking to stretch the amortization period to the maximum of 35 years to decrease monthly payments can breathe a sigh of relief. These limits remain unchanged under the new rules.

Your Turn: Do the new mortgage rules go too far to protect Canadians, or not far enough?

3 Places Worthy of Your RRSP Account

With the RRSP contribution deadline looming, the advertising blitz is on to get your attention and retirement dollars. If you're a newer investor, you may be looking for that perfect place to open your RRSP account. There are several choices to consider.

Choosing where to open an RRSP account is different from deciding what to invest in. Since an RRSP is just a container to hold eligible investments, the key is to open your RRSP account at a financial institution that meets your needs.

You don't need to stick to just one RRSP account either -- you can open several RRSP accounts at a variety of financial institutions as long as you don't exceed your total contribution limit. Then, at each institution, you can choose among the firm's various investment options for your RRSP account.

• Mutual fund fees can eat into your retirement savings, see how with the Portfolio Fee Calculator -- results will shock you!

For now, let's look at the advantages and disadvantages to opening your RRSP account at a variety of financial institutions.

1. Your Bank or Credit Union

Opening an RRSP can be as easy as walking into your regular bank or credit union and filling out the paperwork.

• Pros: Your RRSP account is located at the same institution where you bank, providing a familiar place for you to get started. Plus, they often have ready-made portfolios making it simple for new investors. The "Big Banks" can offer many investment types, including GICs, mutual funds, and index funds.
• Cons: Investments are often limited to the institution's offerings, and account fees and mutual fund fees may be high.

You may also consider opening your RRSP account with an online bank where account and fund fees may be less expensive.

2. Your Employer or Group RRSP

If your employer offers a group RRSP plan and matches contributions, then you could be in for some free money.

• Pros: Contributing to your RRSP every pay period helps you consistently build your retirement savings, and getting your employer to match contributions could help you retire sooner. Your company sponsored plan may offer low-fee and no-load mutual funds -- be sure to ask!
• Cons: Many group plans are limited to the predetermined investment options your employer offers. There may also be plan fees and rules for when and how you can withdraw funds from your account.

Joining a group plan is easy; just contact your Human Resources department and fill out the paperwork. Your contributions are then taken from your pre-tax pay as payroll deductions, reducing your income tax immediately. Your contributions are deposited into your RRSP as specified.

3. An Online Broker

If you're a do-it-yourself investor, then opening an RRSP account with an online broker may be for you.

• Pros: Online brokers give you a centralized place to invest in mutual funds, exchange-traded funds (ETFs), stocks, bonds, and a myriad of other investments from a variety of fund companies.
• Cons: It may be overwhelming for new investors to build their own portfolio, but there are many investor sites online (for example, MoneySense) if you're willing to learn. Be sure to look at account fees, MERs, loads, and transaction costs before signing up with an online broker.

The Globe and Mail does an annual review of online brokers and gives you the top tips for opening an account that's right for you.

More on RRSPs:

• The 5 Minute Guide To Your RRSP
• 3 Smart Ways to Squeeze More Savings into Your RRSP

Your Turn: Do you have more than one RRSP account? Got any tips to share?

Fun and cheap ways to celebrate the Olympics

The 2010 Olympic Games are at home in Canada and that’s cause for celebration! If going to the live events is not in your plans or budget, you can still be a team player and show your pride and support for our Canadian athletes. Here are a few winning ideas for enjoying the excitement of the games while taking home gold medal savings. Go Canada!

 

• Host an Olympic party. Invite your fellow sports fans over to watch the events. All that cheering will make you hungry, so before the games begin, head over to Loblaw’s, Sobeys, No Frills, Save-On-Food, Price Smart Foods and Wal-Mart for snacks and hors d’oeuvres. Check the grocery flyer category on Flyerland.ca and stock up when they’re on sale.

 

• Cheer on Canada at a theatre near you. All across Canada select Cineplex locations will be broadcasting the Olympic Games. You can catch all the action with other proud Canadians—it’s the next best thing to being there!

 

• Buy a big screen TV. Imagine how much more thrilling the games would be to watch on a big screen! Now is the perfect time to upgrade your home entertainment centre. You could even win your very own 42” Samsung Plasma TV courtesy of Bad Boy just by entering on Flyerland.ca.  Enter the contest today!

 

• Got 2010 on the brain? Throughout February and March, if you use your Visa at any Rexall or Pharama Plus locations and be eligible to win $2010 each month for a year. Think about all the great sporting activities you can do with that!

  

• Sport your Olympic gear. Support team Canada by wearing your official 2010 Canadian Olympic team apparel. Purchase your gear at The Bay and if they’re sold out, try Zellers—they carry all the same spectacular stuff.

 

• Take a ski vacation. If seeing the beautiful scenery of Western Canada during the games motivates you to take a holiday, plan a ski getaway. Check out Flyerland.ca for daily deals from TravelAlerts on Flyerland.ca.

 

• Organize your own Olympic games. Watching the games can inspire any armchair athlete to join in the fun! Head outdoors and set up your own winter sporting events in your backyard such as an obstacle course, sled races, skiing and more—use your imagination!

 

• Create posters and cards. Show your Olympic spirit by making cheering signs to take to the games (if you’re lucky enough to be going) or to local events. You can also create motivational cards to send to your favourite athletes. Visit Flyerland.ca and check out the Michael’s flyer for all the supplies you’ll need.

 

By Debbie Frye, General Manager, Flyerland.ca