MORE ON TFSA CONTRIBUTIONS AND FINANCIAL LITERACY
June 13, 2010
Since you did my Toronto Star mainstay today, I’ve listened from most people who were penalized for TFSA over-contributions or transfers. They’re additionally withdrawal comments during the Star’s website.
Here have been the little serve points you wish to have after celebration of the mass their stories as good as reflecting upon what has happened:
* The tax-free assets “account” should have been called the tax-free assets “plan”. People had the sense which they could make make use of of the TFSA in the same approach as the bank account.
* Financial institutions didn’t do sufficient to advise business about the risk of taxation penalties if they withdrew income from the TFSA as good as transposed it in the same year.
* The Canada Revenue Agency explained the manners during the website, though most people didn’t do any double-checking. They relied upon their monetary institutions for information.
* The summary which TFSA contributions couldn’t surpass $5,000 the year was obviously communicated. But the similarly critical summary about the risk of relocating income openly in as good as out of the comment got lost.
* Thousands of people done mistakes which resulted in taxation penalties distant larger than their taxation savings. It’s transparent the complement failed, not the people who used it.
* The minority supervision has an annoying taxation failure upon the hands. A open criticism could move the little results.
* Fairness dictates treating unintended errors with tolerance in the initial year which the taxation preserve is introduced.
So, what can you sense from this open process snafu? you have 3 ideas.
One, people compensate tighten courtesy when they’re intent in the contract or meditative about you do the transaction. “Just-in-time delivery” is distant some-more in effect than explanations since good prior to there’s an goal to act.
Two, the monetary institutions don’t know sufficient about the TFSA manners to teach customers. They should be compulsory to palm out the one-page notice request to any one opening the brand new comment or creation contributions to an existent account.
Three, transfers of TFSAs should not capture penalties (unless they’re partial of the taxation deterrence scheme). Yet most people have been removing penalized for transferring TFSAs. It’s transparent which monetary institutions have been creation errors, though the weight of improvement lies upon their customers. That’s not fair.
Financial education is the prohibited subject these days. you goal Finance Minister Jim Flaherty as good as his monetary education charge force can make make use of of this foul-up as the box investigate of what NOT to do in communicating pass messages.
Finally, I’m training the giveaway march in monetary education during Ryerson University upon Tuesday, Jun 22, from 5.30 to 9.30 p.m. Please pass along the summary to any one who competence be interested.
The seminar is co-sponsored by the Financial Consumer Agency of Canada as good as the Investor Education Fund. Here’s the link.
SHOPPERS DRUG MART CHANGING REWARDS IN JULY
June 11, 2010
Companies which suggest rewards for visit selling can shift a manners from time to time. But they should give transparent avowal of how a changes might start you.
Shoppers Drug Mart is becoming different a manners for Optimum prerogative redemptions upon Jul 1, though it’s revelation business usually about a brand brand brand new schedule.
I consider this fails a transparent avowal test. Shoppers Drug Mart should uncover how most points we need for rewards now, compared to how most points you’ll need in a future.
Giving business copiousness of allege notice would additionally be welcome. Alas, that’s not a box here. You have usually a month to set free your points prior to a brand brand brand new manners come in.
Luckily, my readers have been assisting out. Joy sent a following information:
My Shoppers Drug Mart check has a notice which a Optimum module is changing. It doesn’t contend what a changes are, though it directs we to a website.
From there, we click by dual alternative screens to sense which they have been becoming different a points emancipation amounts. To review a stream as well as brand brand brand new programs, we used a shopper who has warranted 150,000 points.
Under a stream program, a shopper would get $300 worth of sell (75,000 points = $150 worth of merchandise).
After Jun 30, they’d get $255 in sell (150,000 points is 3 x $85 or $255).
So, we consider I’ll get improved worth if we make use of my points by a finish of June!
You can find some-more about these changes here during a Smart Canucks blog.
COMPANIES GETTING TOUGH ON COLLECTING OVERDUE BILLS
May 29, 2010
Many people have asked me about Bell Canada’s brand new late remuneration price — 3 per cent a month or 42.58 per cent a year compounded.
As Bell says here, a regulated partial of your check is theme to a most reduce price of 1.25 per cent a month or 16.07 per cent a year.
I theory a CRTC, that regulates an increasingly not as big share of Bell services, would never concede a 3 per cent monthly fee.
In Sep 2008, Bell mislaid a category movement authorised case instituted by Ottawa patron Peter DeWolf, severe a deception of a $25 monthly price upon owing heavenly body TV accounts. The Ontario Court of Appeal upheld Bell a year later, observant a $25 executive price was a legitimate charge.
Now Bell is perplexing an additional approach to have business compensate some-more when they’re late. But what bothers me is Bell’s tall blunder rate. How most people exclude to compensate a little or all of their bills since a charges have been only solid wrong?
Rogers additionally creates errors, as we can see from Dawn’s story below. Her hold up was incited upside down by fighting off a pick up group hired by Rogers to pick up bills she didn’t essentially owe.
Fitness clubs make use of pick up agencies to shillelagh we in to profitable owing bills. Door-to-door appetite sellers do it as well. They know we don’t wish to get a black symbol upon your credit rating.
Many people will compensate charges they don’t consider have been bona fide only to get absolved of a check collectors.
There’s a elemental lack of harmony here. Consumers have to quarrel behind opposite billing errors with their own time as well as money, as seductiveness charges supplement up as well as pick up agencies have been called in. They scapegoat a lot to keep going.
Meanwhile, companies can make their remuneration threats by authorised equates to — as well as write off their costs.
Sure, a little people don’t compensate their bills customarily as well as lift costs for others. But my regard is for those who have genuine grievances as well as can’t see them by to a finish since of usurious seductiveness charges as well as clumsy pick up efforts.
MBNA HIKING MINIMUM PAYMENTS ON LOW-RATE CARD
May 28, 2010
In 2008, Rebecca took out an MBNA credit label with a low rate of 1.99 per cent. She was told a rate would never go up as prolonged as she paid a smallest due any month.
She continues to compensate promptly. But she doubts she can do so in a destiny since of a shift in a approach MBNA calculates a smallest payments.
The outcome is which she’ll have to compensate $474 a month, compared to $79 now, to keep her comment in great standing. She thinks this is unconscionable.
Rebecca wants to wait for a couple of months until she sells a residence she has only renovated. (The $41,000 debt upon a label stemmed from these repairs.) She’s disturbed which if she creates any late payments, MBNA can wrench up her rate to twenty per cent or more.
Her story shows a risk of depending upon low-rate credit label offers to final indefinitely when a label issuer can shift alternative pass conditions as well as conditions.
I’ve posted her letters as well as MBNA’s reply below. What do we think?
BENDING OVER: HOW TO SELL TO LARGE COMPANIES
May 24, 2010
This is a guest post by Steve Hanov, who blogs about programming as great as startups.
For a micro-ISV, selling to vast businesses can be some-more remunerative than offering to consumers. Instead of creation a couple of dollars per sale as great as anticipating for thousands of sales, we sell to customarily a couple of customers, as great as assign most aloft rates. But a rates have been tall for a reason. It takes some-more time as great as income to sell to businesses, generally a vast ones.
Legal Issues
Consumers frequency examination program permit agreements. Most corporate commercial operation do not examination them either, though a little have authorised departments which contingency authorize any agreement which a association makes, no have a difference how small. Your EULA will be carefully thought about with a same passion as a billion dollar acquisition.
The permit agreement’s initial purpose, then, is to get past a customer’s authorised group quickly, since they mount in between we as great as a sale. It helps if it is satisfactory as great as great offset during a start. That way, if they supplement funny biased terms, we can come to conditions though sounding unreasonable.
Some conditions which we competence be asked for:
- “If we go out of business, we get all of your source code.” The ask is common. The patron sees it as an word routine in box a not as vast retailer disappears, as great as a declaration it provides competence be so critical which they have been reluctant to dump it. Source formula escrow services will reason upon to your source formula for a cost (hint: get a patron to pay). Opt for a some-more spontaneous agreement if they do not privately ask for this service.
[Editor's Note: When this has come up I've regularly used a same line: "We're happy to put formula in escrow. You set up a escrow representative as great as bear all costs." Every time this routine was supposed though a fight, as great as never did a patron essentially set up a escrow!] - “If someone sues us over your product, we have to compensate a authorised costs.” Indemnification is additionally a customary proviso which is formidable to get removed. If we can’t stomache any risk of personal bankruptcy, incorporating your micro-ISV is a must.
[Editor's Note: Incorporating isn't sufficient since customarily lawsuits with tiny companies name a initial owners as great as a company. You additionally need an powerful word routine for yourself. You have to concede a indemnification clause, though your counsel can assistance we qualification difference which ensures, for example, which indemnification cannot be larger than a income a patron spent, or which they can find indemnification customarily if a patron themselves have been successfully sued for damages, as great as not usually which they got sued during all.] - Support details. Are we starting to be upon condition which giveaway technical await for this product in perpetuity? we goal not.
- “What happens if a product is defective?” It’s customarily satisfactory to indicate a full reinstate if a patron is not satisfied.
A great program permit agreement which we can re-use in a accumulation of situations can cost anywhere from $1000 to $5000. It pays to emporium around.
[Editor's Note: Most tiny companies begin by duplicating a EULA from a identical company, presumably even a competitor. That's a copyright violation, though might be we can have make make make make make make use of of of of of of of it as a beam with a counsel of your own.]
Quotes
A allude to looks usually similar to an invoice, solely which it has an expiry date. Sixty days ought to be prolonged sufficient for a patron to have a decision, even if a total dialect goes upon uninterrupted vacations.
Even if we discuss it your prices upon your website, most companies need a grave allude to anyway. This is a request they can put in their system, not something passing as great as fanciful similar to a website.
Make certain we get this right; if your contingent check deviates from a allude to they’re starting to roar full of blood murder.
Evaluation Version
The purchasing routine can take a prolonged time, so we competence be asked to yield an analysis chronicle whilst a sum of a sale have been worked out. It is misleading either a patron acknowledges any of your permit conditions during a analysis period, so a product should have a time singular expiry as great as alternative technical measures to safeguard compliance.
[Editor's Note: It's unfit to be despotic with an analysis timeline. There have been counter-arguments to a following (and greatfully leave those in a comments), though in my knowledge vast companies pierce delayed in any box of how most of a tough line we wish to have with a analysis period.
However we can still have make make make make make make use of of of of of of of a timeline to your advantage. Still have a time limit, afterwards when they fundamentally need some-more time, we have an forgive to contend things like, "Well we could try to get accede to magnify a deadline, though we need to discuss it my trainer something. Is there swell upon removing a sale done? Are there any technical barriers we need to remove?" In alternative words, benefit report about what they're we do as great as during slightest secure an additional step brazen in their purchasing process.]
Purchase orders
You as great as a finish users of your program have patiently waited for 5 months for a company’s authorised group examination your license. Now, a sealed copies have been faxed (yes, faxed!) behind as great as forth. At last, they’ll click upon which Paypal symbol upon your sequence page…
Think again. Once a vast commercial operation has concluded to buy your product, we have been approaching to send it to them for free. They do not have to compensate we a dime until they feel similar to it. Instead, they will send a purchase order — a request observant they intend to compensate eventually.
The great headlines is which squeeze orders have been a legally contracting guarantee to compensate you, after all of a conditions have been fulfilled. Here is a blueprint to spell out a procedure:
Click to Edit upon WebSequenceDiagrams.com
If we have been lucky, they will have make make make make make make use of of of of of of of PDF files for a squeeze sequence as great as invoice. But we will substantially have to send as great as embrace a little some-more faxes.
[Editor's Note: "Waits just twenty-nine days" is optimistic. Often they compensate most after than a settled deadline. Yes we can try to levy late fees, though great fitness pciking up upon those. Probably not value your time anyway.
Another inapplicable designation we done early upon was to send invoices prior to a PO (Purchase Order) was received. Invoices which do not embody a current squeeze sequence have been automatically rejected.]
“Please examination this 100 page request about a invoicing process.”
Sometimes, after all is agreed, you’ll be asked to perform a little kind of insanely formidable invoicing procedure. The instructions have been laced with stern, top box warnings which if a check doesn’t follow a correct format, lacks object difficulty labels (found in request B), or is submitted during a wrong hours, it will be ignored.
If we have labelled your product reasonably it will be value it to outlay a couple of hours to clarity their codes as great as procedures. If a cost is as good low, we can try your fitness as great as (politely) ask if there have been any alternative options. (Do not discuss why!)
[Editor's Note: Companies with formidable purchasing procedures have been additionally used to spending some-more for software. It's OK to ask about what their purchasing routine is similar to prior to we send a strange quote. If it sounds complex, it's suitable to supplement additional charges to understanding with it. However, facade it as something similar to "installation support" as great as not "coping with your ridiculous payment system."]
“We will recover a supports after we yield your US amicable confidence number.”
US commercial operation will infrequently ask for a Taxpayer Identification Number (TIN). If we have been not a US taxpayer, we do not need one. Once we indicate this out, they competence be fine with it, or they will ask we to fill out a US form W-8BEN as great as send it to them. The form is frightful since it states which your “income” will be theme to a 40% self-denial tax. Don’t worry: a squeeze cost is not “an volume theme to withholding”, as great as sellers do not need to begin we do US taxes (if they aren’t already). Some US businesses feel which they contingency keep this form upon jot down for all suppliers, as great as it’s simpler to imitate than argue. Here’s a little some-more information.
[Editor's Note: In a US there's never a reason to give out your SSN. Instead, get an EIN (Employer Identification Number) from a IRS. This is what will crop up upon all your authorised forms with commercial operation as great as your corporate taxation returns. You do not need to soak up first.]
“We customarily compensate regulating Bankers’ Scrolls done from papyrus”
Many companies have a routine opposite regulating Paypal. It’s most appropriate to have make make make make make make use of of of of of of of an aged fashioned check if we can. You can suggest, though never demand upon a routine of payment. Money is money! Some general commercial operation customarily have make make make make make make use of of of of of of of bank transfers. If so, call your bank for a report which we need to yield them, as great as design about $30 of a remuneration to go to fees.
[Editor's Note: Smaller banks mostly have ridiculous multi-hop procedures for usurpation general wires. If we contingency have make make make make make make use of of of of of of of a not as vast bank (e.g. might be a not as vast a single offering we a bigger line of credit), still have a operative comment during a bigger bank for things similar to general transactions.]
Resellers
Imagine we have been asked to buy a little program from, contend Adobe.
- You go to their web site,
- try to find a couple to buy,
- figure out how to pay,
- get to a checkout page,
- then stop as great as poke Google for “adobe banking codes”,
- go behind to step 1
- keep lovely your email for a link,
- download a software.
- Keep of jot down of a taking somewhere.
Now suppose we have to do this for 1000 opposite items, during 1000 opposite web sites. It gets to be a really vast job. Some companies have outsourced their buying to resellers.
A reseller is simply an surrogate who pays we as great as provides a program to their client. It’s additionally their pursuit to ask for a discount, though there is no need to yield one. They have been told to take your product, as great as have already been paid a cost as a commission of your price.
[Editor's Note: Never never never never give these guys a discount! Was which transparent enough? :-)
They competence go down easy or they competence have make make make make make make use of of of of of of of cheap hard-sell strategy to get we to reduce your price. Some will even contend they have a energy to retard a sale. That's not true; they do not get their useless, stinky paws upon a sequence until it's already approved.]
Keep smiling (in public)
Selling to vast companies can be frustrating. Throughout a process, it is critical to stay veteran as great as pleasant. Sometimes, it competence crop up which your patron is perplexing to screw you. Even if they are, is your pursuit to be jovial, indicate it out, as great as pretence which it is a elementary oversight. It creates no commercial operation clarity to throw income away since of a bold email.
What else?
What alternative techniques do we have? More stories from a field? Leave a comment as great as stick on a conversation.
CONFUSION ARISES WHEN WARRANTIES OVERLAP
May 18, 2010
Many stores suggest lengthened warranties for a products they sell. You might pretence which a retailer’s lengthened guaranty kicks in after a manufacturer’s guaranty is over.
Not so fast. Your lengthened guaranty can overlie a manufacturer’s guaranty for a initial year or two.
Why would retailers smoke-stack dual warranties upon tip of any other? And because don’t they have it transparent clear when they do that?
See Mark’s lamentation next about a treadmill he paid for from Fitness One, anticipating to be stable opposite repairs for 5 years. But when a treadmill needs repairs, he schooled which a retailer’s coverage lasted a year reduction than he suspicion it would.
Yes, a retailer’s guaranty might be some-more inexhaustible than a manufacturer’s warranty. For example, it might let we dump off poor products during a store, instead of wrapping them during your responsibility as good as promulgation them by mail to a manufacturer.
However, we hold which retailers contingency have business wakeful of a overlapping. This equates to posting created warnings upon office work as good as creation certain which staff gives written warnings as well. Misunderstandings can be costly.
COMPLAINTS ABOUT TAX COLLECTORS AND TAX SOFTWARE
May 5, 2010
The 2009 taxation lapse is done. Now you’re watchful for the refund. But for the little people, that reinstate takes the prolonged time to come.
I did the column final week about someone who had waited some-more than the year for his refund. He claimed an investment detriment of $75,000, that he longed for to make use of as the down remuneration upon the house.
His record went nowhere until he called in the ombudsman for taxpayer rights, who can titillate (but not order) the Canada Revenue Agency to provide people improved as well as promulgate with them in denunciation they can understand.
Larry MacDonald additionally highlighted the taxpayers’ ombudsman final week in his Canadian Business blog.
In reply to my column, we listened from someone who had waited 4 years for the refund. Holey moley. The CRA certain does work solemnly in the little cases.
Tax program isn’t the large emanate any more, though we still get the couple of complaints. I’m posting an sell next from the lady who approaching some-more than QuickTax was rebuilt to suggest as well as had to arrange things out with an Indian call centre, during her own expense.
Once that reinstate arrives (if you’re propitious sufficient to get one), we don’t have to consider about income taxation for an additional year. Unless you’re self-employed, of course, that equates to you’re forced to concentration upon taxation all year round.
BELL WANTS ME BACK
April 27, 2010
I switched to Rogers home phone upon Apr 20. Bell called upon Apr twenty-six — yes, reduction than a week after — asking me to return.
The telemarketer called during cooking as well as abandoned hints it was a bad time to talk. He asked what it would take to win me back.
I said, “If you done this call prior to you left, you competence have listened as well as competence have stayed. It’s as well late now.”
I switched since you could save a lot of income consolidating with Rogers. An combined perk: When a phone rings, you can see a caller’s name upon a TV screen. That’s cool.
Bell hates to remove business as well as calls uninterrupted to win them back. This additionally happened when you switched a long-distance to Yak. Another good of starting to Rogers: Long-distance mins have been included.
Bell has a sales enlightenment left wild. It puts a interests forward of your interests. It doesn’t assimilate patron service, notwithstanding unconstrained speak about mending it.
Some companies have been creation progress. Best Buy gives refunds upon a product (a Sony diversion card) which was formerly non-refundable. Canadian Tire wants to repair a reinstate process too.
See a stories next as well as be grateful for firms which wish to beef up patron use as well as not only compensate mouth use to it.
THREE QUESTIONS FOR FIDO
April 25, 2010
Jeff Green has an total City Fido account, a good rate devise introduced prior to Fido was acquired by Rogers. He’s asking since patron use has left downhill as well as either he’s being treated with colour really bad since he’s unprofitable.
His quarrel with Fido is about 3 issues:
– If a phone breaks whilst underneath warranty, Fido will get it repaired. But if a same censure pops up post-warranty, who does Fido demand he understanding with a manufacturer?
– If Fido has a process of recording all calls from customers, since can’t business jot down calls from Fido?
– If Fido suspends use as well as charges a price to get it back, since isn’t it up front with business about this replacement fee?
He’s not removing a answers he wants. And yet we attempted to assistance him expand his censure during Rogers, he’s not most serve ahead.
So, we leave these questions with readers. Read a sum next as well as give your perspective about a rights as well as wrongs in this case.
A WEEK IN THE LIFE
April 23, 2010
I betrothed to refurbish my blog some-more often, though reason up is removing busier again.
On Monday, we appeared prior to a charge force upon monetary preparation in Toronto. The chair, Donald Stewart, blogged about it here and tweeted here.
On Tuesday night, there was a monthly assembly of Ellen’s Investment Club, which we wrote about here final year. We talked about prime sell bonds as well as about options trading, something usually dual members were we do as well as a rest of us longed for to try.
On Wednesday night, we taught my stability preparation class, The Facts of Life about Your Finances, during a University of Toronto. In this third assembly of a six-week course, a subject was a worth of a principal residence, a prohibited subject in an overheated housing market.
Tonight, we was inaugurated to a brand new board, Community Legal Education Ontario, which does good work in assisting low-income people assimilate their authorised rights.
Also this week, a Rogers technician came to my residence to implement home phone service. Yes, I’m no longer a Bell customer.
I couldn’t omit a constrained assets upon a phone package (which enclosed long-distance), as well as a replacement of a fifteen per cent gold bonus we mislaid a year ago given we didn’t have 4 Rogers services. The switch went smoothly, which was a service given we listen to so most abhorrence stories.
Lest we receptive to advice as well complimentary, we have to contend which job Rogers final night was no picnic. My son longed for to know how to get a 10 per cent bonus upon Blue Jays ball tickets, a perk of a VIP Ultimate package. He waited upon reason as well as was transferred. Then, he handed me a phone, so we waited upon reason as well as was transferred. No a single knew anything.
Finally, a Rogers repute said, “where did we listen to about this discount?” We pronounced during your website, a actuality which should be partial of their training.
No consternation a crowds have been so tiny during Blue Jays games.