Lurking somewhere in the Canadian financial scene is an entity we’ll call The Blob.
The Blob is friendly, but also elusive. It’s billions of dollars that people saved in pandemic lockdowns by not being out and about. Economists have pegged the size of the blob at a peak $350-billion, which includes available cash and money deployed for various purposes.
A note from TD Economics says Canadians are still saving more money off their paycheques than they were before the pandemic and haven’t dipped into pandemic savings. The Blob is alive and well, but still not well understood.
Let’s try to do something about that. Below, you’ll find an anonymous survey about money saved since the pandemic dropped on our heads in early 2020. I’ll report back on the results in a future newsletter.
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Rob’s personal finance reading list
The cost of stepping on your cat
A financial blogger uses an unfortunate incident – a kitten was stepped on – as a lesson on the importance of buying pet insurance. Some useful comparative info on pet insurance policies.
Slaves to the iPhone
A smart take on Apple’s iPhone – how many of us have become hooked on these expensive devices, even as the pace of improvements has slowed to almost nothing.
A history of credit scores
How your history as a borrower came to be summarized in a single score looked at by lenders, as well as some employers, insurance companies and landlords.
Best credit cards for students
The Rewards Canada website serves up a detailed look at three reward credit cards ideal for students. Naturally, all three have no annual fees.
Ask Rob
Q: I have $300,000 that I could invest. I want safety. What kind of a return should I expect over one to three years?
A: Two- and three-year guaranteed investment certificates pay as much as 4.75 per cent these days. There’s your benchmark.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
To do a background check on an investment adviser you’re researching, try the newly revamped Advisor Reports from the Investment Industry Regulatory Organization of Canada.
The Money-Free Zone
I just discovered the 1969 album Dylan’s Gospel – 10 Bob Dylan covers by a gospel group called The Brothers and Sisters (and guest vocalists like Merry Clayton). Start with All Along the Watchtower.
What I’ve been writing about
- Burned by bonds? Relief is spelled GIC
- An eight-pack of dos and don’ts for surviving and profiting in a world of rising interest rates
- An argument for cracking open your TFSA
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Is the middle class dead for millennials and Gen Z? • Gas prices are soaring. Are electric vehicles an affordable solution? • Crypto is booming, but should you invest? • How are young Canadians dealing with soaring rents? • Inflation is squeezing our finances. What can we do about it? • Is a hot housing market squeezing Canadians out of their small towns?
- ✔️ The housing file: How bad is housing affordability? Even a crash won't help • Sell the family home to lock in profit and then rent? Better not • Why young adults can't afford houses: Hard work got you more in the past than it does now • Five reasons you should not buy a house till you're at least 30 • Now more than ever, owning a house is not a retirement plan
- 📈 Investing: The 2022 ETF buyer's guide: Best Canadian equity funds • The 2022 Globe and Mail digital broker ranking: Does the zero-commission revolution flip the script on who's best? • With bonds sinking, conservative investors are waking up to risks they never saw coming • A five-step plan for dealing with the sad fact that almost every investment is falling lately • The best financial advice in advance of retirement? Work on your marriage • One-year GICs are the best deal in town for safety seekers • What to do if the financial plan you paid thousands for disappoints
- 💰 Your money: Are you prepared for the pandemic wealth boom to blow up in our faces? • This hard-working 24-year-old is nailing it financially. But where's the happiness? • Who should and shouldn't worry about the wave of rate increases this year, and what every stressed-out borrower should do right now • Don't make this potentially costly assumption about the CPP Survivor's pension
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
