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$.

Non RRSP investments and taxes

I find MorningStar very good to find any kind of information regarding mutual funds. As I previously post, I would like to invest a little 500$ in a mutual fund that still have a good return after taxes. I was than thinking of the CIBC Monthly Income Fund.

To find information, I consult the MorningStar Quicktake Report. Each Canadian mutual fund has one. I really enjoy Morningstar because their Web site exists in both French (yes!) and English. When I don’t understand something in English, I just switch for French… and vice versa… lol, since I do most of my financial reading in English.

I try to consult their articles as much as I can but one time, I invest in the RBC O’Shaughnessy International Equity Fund without doing any search. I didn’t do any because I told myself if it’s an O’Shaughnessy, it’s a good fund. And it’s happen that the author of the review of this fund in Morningstar, David O'Leary, believe that the management fees of the fund are too high, and as highlight at the beginning of the review “We are disappointed by this fund's higher fees.” And just to let you know, the same analyst in saying the following about my super RBC O'Shaughnessy All-Canadian Equity: “Don't let the recent dip in this fund's performance concern you.” I plan to keep that fund forever. I am all proud of that fund, even if my initial investment of 3 000$ drop down to near 1 000$. This fund is now close to new investors……

In date of today, I regret that choice because since I acquire that fund, I lost my initial investment, which was of 1 000$. In date of today, my 1 000$ now only worth 762.78$. So why should I pay higher fee if the fund is not doing well? I believe O’Shaughnessy magic trick to invest might only work well in countries were the economy is in good shape. From what I notice, International funds don’t have a very good return since inspection, Canadian mutual funds are way better. I would like to invest in Canadian mutual funds only, but I understand it’s important to diversify a bit my portfolio. That’s also the reason why I also invest more than 2 000$ in the RBC U.S. Mid-Cap Equity Fund C$, a US funds. I don’t really like to invest outside Canada, because I believe the best funds are here.

What I dislike about RBC is that they ask too much for non RRSP investment. They ask for a minimum of 1 000$ for non RRSP investment. Compare to TD who just ask a cute little tiny 100$, the difference is huge. And CIBC only ask for minimum of 500$ for non RRSP investment. So why should I stick to RBC? The only reason why I begin buying funds at the RBC is because of the O’Shaughnessy mutual funds.

While I was doing some search in the Morningstar Web site, I was quite surprise to find out that a mutual fund I previously invest in, the RBC Global Resources fund, was quote five stars for after taxes value. I have a good return after taxes for that fund and I didn’t even know.

Still no part-time job yet

I am so disappointed, I didn't find a part-time job yet and I am in need of one now. I went to a Linkin Park concert at the Bell Centre on February 22. I gave 40$ to my friend for the ticket, but to that 40 bucks, add money for beer(s), a t-shirt at 35$, and 10$ for stickers… At the end, it do cost a lot, and I gave 1 000$ this month to pay on my credit card. It’s a good thing I don’t go out too much often, it do cost a lot. I am just thinking about my New Year Eve, when I finish the night in an hotel room with the same friend because we couldn’t find a taxi….. or were too … to find one…….. “Taxi, taxi, we need a taxi….”, that’s the way I call for a taxi when I am … But the taxi never come, so we had to find a hotel room, which was easier to find than a taxi…lol!

My 1 000$ check for my credit card, had been taked. I had to say bye bye to a 1 000$. I have been with that debt for a long time now so it was about time I get serious about getting out of credit card debt.

I should be ok to get another 1 000$ on my next pay check. I just hope things will remain the same for the next 2 months. I really want to pay off that credit card debt for goods. But what appear difficult for me now is to remain debt free. Once that credit card is pay off, my student loan will remain. That one doesn’t bother me that much. There was a period of time, was before I start blogging, were I pay 1 000$ per month on my student loan. I did so for about 6 months. Which shortly after I invest in my first fund, Fidelity Frontière Nord. I know I can stay debt free, I just have to stay focus.

My search for a part-time job continues. I had found some part-time job; it could have work out if not of my work schedule. I didn’t really try that hard to find a part time job. I am going to look more seriously this evening. And than, I hope it will work out. I was thinking maybe just work on Saturday and Sunday. During weekdays, my shift at work only begins at 3 pm.

I am off today from my job, but I sleep most of the day. I begin my day at 3 pm, and I have a funny taught, I would like to invest 500$ in the CIBC Monthly Income Fund, non RRSP of course, I don’t want the nightmare to continue… (see previous post “RRSP nightmare” )

My TD 2007 RRSP Portfolio: the best of the best

I was so proud of myself to get what I wanted from TD. I follow day by day the performance of my TD 2007 RRSP portfolio. What I call portfolio is a mix of the following mutual funds:

TD Entertainment & Communications
TD U.S. Mid-Cap Growth
TD Latin American Growth
TD Precious Metals
TD Dividend Growth
TD Monthly Income
TD Canadian Bond
TD Emerging Markets
TD Energy

I wasn’t able to get those right away, but at the end, I finally got what I wanted and I was quite lucky, knowing just the little money I had invest in each of those funds (100$ initial investment in each, except for the TD Dividend Growth in which I invest 200$).

Since January 2008, the month I made my initial investment, the overall portfolio didn’t do so badly, it went down to 996$ once, and now, in date of yesterday, it’s up to a super 1 012.13$!!!

For me who like mutual funds that much, I find it very hard to pay out my credit debt instead of investing in mutual funds. I would like to have a similar portfolio in non RRSP. If I was able to get it once, I should be able to get it twice. Even outside RRSP investment, the minimum investment is only of 100$ per mutual funds. Which I wonder why, because it’s the only bank I think who ask for an as low minimum. And knowing what kind of funds have TD, I just find it great that someone can invest as low as 100$ in any of their best funds.

Missing 18 000$ to reach my first 50 000$: can I make it this year?

If I want to reach my first 50 000$ this year, I will have to save an average of 1 500$ per month, which I find quite difficult to do, since for now I have to work 50 hours each week to receive bi-weekly a 1 000$ paycheck. Unfortunately for me, I cannot live on 500$ monthly. My average expenses for a month is about 1 200$. So I am currently able to save something like 800$ per month for now, with the one and only job I have. I now only have one job.

Starting from next week, I will have a regular schedule, which I ask for a long time ago. I am supposed to get a regular schedule, with weekend off. It will make it much easier to get another job, a part-time one. I was also thinking about trying to make money from Internet. I try it before, but it didn’t work out. But I can’t say that I really try.

To be able to save 1 500$ per month, I will need to have a monthly income of 2 700$ per month, which is not impossible and it’s quite realizable to make an extra 700$ by having a second job.

But the problem is that we are almost at the end of February, and I know I won’t be able to save this month, March and April that much. I ma trying to pay that 2 381.17$ debt I have in credit card. I paid 1 000$ this week, I will pay 1 000$ in March and in April, I will pay the rest, which should be around of 400$ or so…. It’s even more difficult to save because of this credit card debt, but fortunately, it’s not a major credit card debt.

It will be quite difficult to reach my first 50 000$ this year, but it’s not impossible. First step is to find a part-time job as quickly as possible.