Are Caisses Desjardins covered by the CDIC?

According to the CDIC Web site: “Some financial institutions that take deposits are NOT members of CDIC—for example, credit unions and caisses populaires, Canadian branches of foreign banks and some Canadian chartered banks. Your deposits with credit unions and caisses populaires may be covered by provincial deposit insurance programs. Canadian branches of foreign banks, and those Canadian chartered banks that are not CDIC members are required by law to inform you that they are not CDIC members and that your savings at such banks are not insured.”

So, are “Caisses populaires” are covered or not by the CDIC? My savings are with Desjardins, and I wonder if the money I have in my bank account is insured or not. I ask the question via email to Desjardins. I just hope to receive a response. If they response “NO”, I just don’t know what I am going to do.

In the list of institutions covered by the CDIC, I notice “Desjardins Trust Inc.”, but not “Caisses populaires Desjardins”.

Why does it have to be so complicate? :))))))))))))))))

Diversify, diversify, diversify……..

I had post a thread in Canadian Business Forum, which title was Mutual funds and bank bankruptcy: is there a risk?

I invest quite a lot in mutual funds offer by major Canadian bank. But always a fear remains: loosing my money. And not loosing it because of a recession or because of natural ups and down of stocks, loosing it because of another reason. And than came the idea of “bank BANK-ruptcy” lol or something else. But my first taught was bank bankruptcy because I had read in the forum that CIBC could face bankruptcy or something similar to that. Anyway, my only fear is to loose money in something similar that some small investors, who could have been myself, had live with Vincent Lacroix and other lost personalities of Quebec finance. I read quite a bit on those. Never from my life I want to loose my money in such a way.

So, I ask in my own little words if there was a risk of losing money if it happens that a bank declared bankruptcy. It might be seen like a stupid question to ask, but I just post it anyway. But I was happy that I did, because I learn interesting things. I got good responses. I am not scared of looking stupid, the only thing I am scared is about loosing money, but not loosing money because of ups and downs of the market. By loosing money in another way.

Anyway, from what I understand, GIC and money being in bank are safe if they are secured under CDIC. For savings and GIC, I am probably ok. Regarding mutual funds, the money remain mine since it’s money invest in stocks and not into the bank itself. And it’s make it more appealing now to buy stocks. I might start a thread on the really basic stuff about buying stocks. It’s seemed like the most important things of life haven’t been explained to me.

The reason I only invest in mutual fund offer by major Canadian bank is I believe it’s saver to invest through a bank than from a private institution, not to name them. The only way to be sure that my money is put at safe is to invest my money in different funds offer by different banks, and diversify, diversify, diversify…

I finally find a pat-time job! YE!

I didn't really find it actually, I got call back by the place I was working before. It's seem like they got a new contract or something, and they are now in need of people. I appreciate the fact they call me back to work, because I wasn't able to find a part-time job. I was going to apply to several job offers when I notice their email, at the old place, that they had send in date of today.

So I am going only work there on Saturday and Wednesday, for which I will made after taxes I believe something like 130$ weekly, which will cover my rent. I was getting tired of looking around for a part-time job and it's seem like my search is finally offer. I don't know for how long their contract will last for, but I am willing to take what they have to offer for now.

I wouldn't like to work more there than Saturday and Sunday because I already work 50 hours weekly at the other job. So let say I will have from now on a weekly income of 650$ after taxes, which is cool.

Doing it by my own

I get another 1 000$ paycheck for 2 weeks are work. And for the next pay, I am only missing 6 extra hours to reach 1 000$ for the next pay. So things are not going so bad after all. I also notice an ad in a newspaper for a part-time job that could match my present work schedule. I just need to apply to it. Since January, I have been looking around for a part-time job, but I wasn’t able to find one. So I really hope this one is the good one. I am getting use to the job I currently have, so it will make it easier for me to get another part-time job. Nothing really work out like I wanted in 2007, I just hope 2008 will be just a bit better for me, for jobs, investments, debts.

I was quite surprised to see my Visa bill of the past month: I only spend 170$ on my Visa. Which mean I only spend 170$ in groceries and other. I actually pay all my expenses with my credit card; I pay it all when I receive the bill. Or it’s what I am trying to do and I have been doing so. I scrapped my credit when I was about 24-25 by opening too much credits at the same time. Now I am 27, I don’t know what my credit is, but I keep paying each month my credit card bill, which was quite low for this February.

I am really getting good at the « non expense » thing; I am quite impressed with myself. I didn’t need to cut many things. I buy less coffee at cafe; it’s doing help a lot. I try to save as much as possible and I not having too much trouble to stop spending money around. I never had been a huge shopper, which help. I really cut on everything I could cut, that’s why my current budget for March is less than 1 000$:

Rent: 520$
Metro Pass: 67$
Other (food…): 170$
Student loans: 165$

That’s all…… It’s an inexpensive little living at 922$. I can make it with 922$ or less. Even if for this month, I would like a hair cut… ;)

Conclusion: it’s possible to make it and life with about 1 000$ if not less, even with a hair cut.

There are a bunch of things that I don’t have and I sometimes think of buying, like a microwave, a TV, a sofa, DVD, MP3, a new digital camera... But each times, I just keep looking, and I never buy. I keep thinking on how much I had to work hard for that money: that is what stops me of buying what I don’t really need. But I have to say, it could be nice to sit on a nice couch, instead of that chair that I am currently sitting on right now.

Anyway, I believe life won’t remain like this forever. The biggest challenge for now is to pay off that terrible credit card debt and to remain debt free. Even if I wrote earlier that I wanted to invest in more mutual funds, I prefer for now to just pay off that credit card debt first and after, I’ll see. I just need a part-time job and it’s too bad I cannot get quickly what I want.

On how I will benefit from the Tax-Free Savings Account

Yesterday, the Canadian government presents his budget and they came with something that similar to RRSP but in better: a Tax-Free Savings Account. In better because it will be possible to withdrawn at anytime and the money taking from the Tax-Free Savings Account will be.... TAX-FREE! Wow!

I read from here and there about this new product. And some had in opinion that only rich will benefit from it. I am not rich, and I am able to save a little bit less than half of my income every year on an average of 30 000$ after taxes income. So if I can do it, a lot of people can too. I just don't like the idea that only rich can do this or that... Whatever..... I invest the maximum in my RRSP, pay off debt and invest in non RRSP.... Desjardins had this kind of idea regarding the Tax-Free Savings Account and it is my bank. Would it be time for me to switch of bank?

I am really excited about it. The Tax-Free Savings Account will be available starting January 2009 and I can't wait for next year. The maximum aloud for 2009 is 5 000$. I just hope they will let everyone invest 5 000$, no matter what are our income. I have thousand and thousands of dollars in investment and savings, it will be so good if a part of my investment will be put in a tax-free account!!!! On a short term basis, I might not see a huge difference, but in a long term... WOW! I can't wait for January 2009!

Proudly Canadian :)

On how it's important to pay credit card debt

I knew, of course, I was paying interests on the 2 549.52$ (which is a little bit more than what I taught), but it just catch my eyes that I was paying 18.89$ per month in fees for that debt. I didn't pay too much attention because my plan was to invest first for my 2007 RRSP and but some money away in mutual funds.

But now that I am done with that for 2007, the next step was to pay, if not my student loan that is more than 10 000$, at least pay that credit card debt. That debt was under 7.99% with American Express. It's a low rate, but knowing it cost me almost 19$ for money that I can easily pay off...

I would like to pay off another 1 000$, but my plan is to wait in 3 weeks, at the next pay.

My living expenses for March (which were made for February) are very low, 170.78$ at my Visa, 520$ rent, 67$ metro pass, 165$ student loan, 200$ (extra, like going out...), for a total of 1122.78$. Which is nice, because this month, I made something like 1 000$ for the 2 pays, so there's an 877.22$ right there this month that can go for savings, but it's not enough if I want to reach 18 000$ in savings this year to reach my fabulous 50 000$.