About sleepydad

A lucky and proud yvrdad of two beautiful children: "O" is an energetic boy, 3.5 years old; a boy who loves to have fun and play with cars and balls. "E" is our precious new born daughter who joined our family 1 year ago. She is enjoying the simple life at the moment: Sleeping and eating!

I Became a Credit Card Junkie!

As a follow up to my last post regarding the HSBC Premier World Mastercard, a question a reader asked was how i chose the four credit cards that I had….

My first experience with credit cards was back in University (about 20 years ago), where you had so many incentives and offers.  I remember the days of my GM Visa card, where I was just happy to get a credit card that I would pay off every month to start building up my credit rating – I don’t think I was ever planning to purchase a GM vehicle.

I did end my buying a new car after I graduated with a car loan through (at that time) was just still Canada Trust.  Having to want to pay back the loan and some student loans as soon as possible, some of the credit cards at that time had offers of six months no interest for balance transfers etc.  I forgot what made me do that, but I started transfering my borrowed money from one credit card to another credit card to another credit card until i paid off my loans, so i ended up paying not that much interest at all.  I think I had an AMEX, BMO card and perhaps a couple more.  I felt like I became a credit card junkie!

Our CIBC Aeroplan Visa was my first joint credit card with my future wife, as we started to accumulate expenses for the upcoming wedding, but the annual fee was just horrendous.  (you probably ready my post about this – http://yvrdad.com/after-10-years-its-time-for-a-divorce-you-are-costing-too-much/ )  I was just didn’t want a credit card that I had to pay an annual fee!

After being abroad for 3.5 years, when we returned to back to Vancouver, my wife had her personal accounts with CIBC and I had my personal accounts with RBC, ING, Canada Trust; so we decided just to consolidate everything into one.   We chose HSBC Canada as main joint account.  I’ve closed my ING, Canada Trust accounts, and downgraded my RBC account to a basic free account.

After we got rid of of the CIBC Aeroplan Credit Card, we started to use our Costco Cashback Amex Credit Card as our main credit card. – I use this card for work and I had recently received my cash back of over $700 for our AMEX spendings in 2012.  I took my rebate to the counter at Costco and got my $700 in cash!

At that time, realizing that not all restaurants/stores take Amex, I had to find either a Visa or Mastercard.  We were working our way up at HSBC, and had upgraded as an Advanced HSBC customer, so we also signed up for the HSBC Advanced credit card, choosing the Cashback option.  By the way – Cash back earnings on our HSBC creditcard for 2012 was $120!

For the BMO US Dollar Credit card, it was actually Popthoughts that introduced me to the card.  I use this card anytime I go to United States for shopping or buying online on US sites.  Therefore I would save the Foreign exchanges rates and fees (usually about 2.5% of the purchase).  This card has a $35 fee initially, but if you spend over $1000 US on the card throughout the year, they will waive the fee the following year.

Last Spring RBC was offering a low rate mortgage of 2.99% for four years, where you can open a HELOC (Home equity Line of Credit),  So, potentially needing money for a business and thinking that interest rates would be rising very very soon (still waiting for the raise of interest rates), we transferred our mortgage that I had with First National Bank (3.95% with one year remaining) to RBC.  RBC paid all the fees (Lawyer fees, appraisals and other fees), where as I paid the mortgage penalty with First National.  HSBC had a similar offer at that time, however they were not willing to pay the fees (lawyers, appraisal and other fees).

Going back with RBC and to be able to easily access the HELOC, we upgraded from the basic account to the no limit banking account.  So to qualify for the multi product rebate for the account, we had to have a RBC credit card, and  basic investment, so I put in $500 in a TFSA – RBC Fund which as risen 10% over the year – (perhaps I should have put in more money in there).  For the credit card, I chose the RBC Rewards Visa Gold.  This is the card that I probably have used once in the past year.  However I did hear that the new RBC Target credit card offers 5% off Target Canada Purchases and is no annual fee.  Therefore I may switch my RBC card to the RBC Target Card soon, perhaps I may get some more use out of the RBC credit card.

I have a friend who is a manager at RBC who says that the RBC Avion Cards are the best on the market, he may be right, but I just didn’t want to pay the annual fees.  I have a friend who charges about $50,000 per month on his RBC and TD travel cards for business expenses; perhap its definitely worth it for those types of charges?

I also recently upgraded to the HSBC Premier status mainly because they offer their self directed investment via HSBC Investdirect at $6.88 per trade.  So when they offered the HSBC Premier World Mastercard late last year, it just made sense that we upgraded our HSBC Advanced Mastercard to the Premier World Mastercard.  As part of the Premier package, I also opened HSBC Canada US Premier chequing account, so I can write US Dollar cheques (to pay my BMO US Dollar credit card).  But I also use this account for my US funds for my US Investments, as they offer free transactions; as opposed to the US Savings account, where they charge $1 per transaction.

My application is still pending for my US Based HSBC Premier Account.  Its probably been about 2 months since my initial application, because the US side says i don’t have a good enough reason to open the US Based account.  My HSBC relationship manager is working on this for me, I hope he comes through.  However, i also found that TD offers the Cross border banking at TD Bank USA and RBC offers their RBC Access USA.  From what i read on other forums, it seems quite simple to get.

What does sleepymom think of this?  She’s sick of all the different credit cards, accounts, applications etc.  But i think we have finally settled until the next deals come.

New HSBC Premier World MasterCard Canada

Seems that HSBC Bank Canada is offering a new creditcard, called the HSBC Premier World MasterCard.  My initial review shows that this World MasterCard offers a better rewards/cashback then the regular HSBC Premier CreditCard.

HSBC Premier World Rewards Program

  • earn 2 reward points when you make purchases in foreign currency; 1.5 reward points for gas, grocery and drugstores purchases

HSBC Premier World Cash Back

  • earn 2% rebate on purchases in foreign currency; 1.5% rebate on gas, grocery and drugstore purchases.

The Regular HSBC Premier Rewards/Cashback only provides 1 reward point or 1% cashback for purchases

To qualify for the HSBC Premier World MasterCard, there seems to be an extra requirement to have a minimal gross personal income of $60,000 or a min annual gross household income of $100,000, in addition to be a HSBC Premier Client (maintain $100,000 in combined personal deposit and investment balances with HSBC Bank Canada).

There is no annual fee associated with the Card; and there is one additional bonus that sets the HSBC Premier MasterCard (World and No World) apart, which is the Travel Protection of up to $1 million for cardholder, spouse and dependent children travelling with you; coverage for unlimited trips of up to 17 days per trip.

When they talk about special discounts for HSBC Premier Privileges, its really not even worth looking at.   I tried to click on the link on their site for the Premier Privileges Canada and got a dead link!  Don’t worry  about it, there are no ‘discounts’ in Canada as we are not a “Popular Destination”.  Perhaps if you do alot of travelling, it may be worth looking into.

Learn about how I got rid of my CIBC Aeroplan Visa card and switched to a cashback program. 

Compared to my Amex Costco Cashback card:  You can get 3% rebate on eligible restaurant purchases (try finding a restaurant that accepts Amex); 2% rebate on gas purchases; 1% rebate on everyday purchases (Levels start at 0.25% up to $1000; 0.50% on next $2000; 1% on any amount over $3000).

Note that when you use a Canadian credit card for a foreign transaction, it adds 2.5% in addition to the exchange rate at the time of the transaction.  The HSBC Premier World MasterCard gives you back 2% in rebate for these foreign transactions.  Therefore instead of paying 2.5%, you would be actually paying 0.5 %.  I got myself a BMO US Dollar MasterCard to use when purchasing in US dollars.  There is no currency conversion fees or exchange fees at the time of purchase.

My Credit Card strategy:

Four cards:

  • HSBC Premier World MasterCard
  • American Express Costco Cashback
  • BMO U.S. Dollar MasterCard
  • RBC Rewards Visa Gold
  1. If restaurant accepts Amex, then use AMEX Costco Cashback to get my 3% rebate; if restaurant does not accept AMEX, then use HSBC Premier World MasterCard for 1% rebate.
  2. Gas – use Amex Costco Cashback for 2% rebate
  3. Grocery/Drugstore – Use HSBC Premier World MasterCard for 1.5% rebate
  4. US Dollar transactions – BMO U.S. Dollar MasterCard
  5. Foreign transactions (other than US dollars) – Use HSBC Premier World MasterCard for 2%
  6. Costco Purchase – continue to use Amex Costco Cashback as they don’t accept any other creditcards.
  7. Other purchases – HSBC Premier World MasterCard for 1% rebate (no levels).  If I use Costco Amex, I would only lose out on $17 because they give less than 1% on the first $3000, 1% after your first $3000.  However you may also want to take advantage of purchase and extended warranty insurance for 90 days from purchase date.  The HSBC Premier World MasteCard purchase also doubles the original manufacturers warranty up to one additional year.
  8. My RBC Rewards Visa Gold seldom gets used; I would only use it if vendor only accepts Visa (ie, Olympics)  :)

What are you your credit card strategies?  Do you always search for the best reward/cashback programs?

Next post – I became a credit card junkie!

Neglected Yvrdad.com

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Finally…. some time to sit to do an update.  As I opened WordPress for the first time in 4-5 months, I had to update my WordPress software and all the associated plugins.  Just because sleepydad and popthoughts have been too busy, the blog word continues to improve and update, and our yvrdad.com lags behind.

Well, we are back – ready for new posts and new content.  There seems to be so much to write about, however, never enough time to write.  Ready for a new committment again, we are not ready to yvrdad.com die off – ( I want to keep paying godaddy.com hosting fees).

Oregon Coast – A view from the beach house. Peaceful: Yes! However you don’t hear or see the 7 kids running around causing mayhem! All in good fun!

It certainly has been a long time, here are some highlights of the spring/summer:

  • finally deciding on San Diego as the destination of a short trip.  We spent four nights, and visited Sea World and lots of good eats!
  • Root canal – Ouch!  Actually didn’t hurt that much, just annoying and uncomfortable
  • a hot weekend in Osoyoos for a beautiful wedding.  A great weekend spent with University friends and now all their children.
  • Selling our rental property and family home – received a call from my agent indicated that someone wanted to take a look at the place.  They evenutally bought it!
  • Week in Portland/Lincoln Cit, in a house full of kids and cousins, siblings and grandparents
  • Watching our 10 month old daughter grow, laugh, sit, eat, and turnover
  • Enjoy silly conversations with our now big boy three year old son
  • signing a lease to move and upgrade office – exciting times ahead!

What were your summer highlights?   Did you miss our posts?  Is anyone reading this? :)   Anyways, we are back, and we are ready to write!

 

Raising kids amid the hookers, junkies and drunks of Vancouver’s worst neighbourhood – From National Post: Mike Comrie

I came across this great article in the National Post last week regarding the neighbourhood where we use to live, perhaps even in the same building that the author Mike Comrie currently lives.

When we found out that we were pregnant in 2009, we immediately thought of moving out of the Vancouves downtown eastside.  Thinking back, we actually moved out more because of lack of space as we lived in a one bedroom, 570 Square foot, condo.  We could not imagine having an infant, in such a small place; at that time, if we did not buy a place we were thinking of moving the baby into the one room, then turning the the condo into a studio suite.

We were lucky at that time as in 2009, the real estate took a bit of a breather, and were able to buy a townhome near VGH to call our new nest.  We were also lucky to complete the renovations in about two months and move in two days before the baby was born!  After renting out the condo for a few years, now my parents live there where they enjoy the downtown life.  We bring the kids by all the time for a visit!

Reading this article, gives me insights of my life if we did not move.  I can just imagine myself in the daily commute to the daycare along Hastings Street.  Thank you Mike, its a great article!

http://fullcomment.nationalpost.com/2012/04/20/mike-comrie-raising-kids-amid-the-hookers-junkies-and-drunks-of-vancouvers-worst-neighbourhood/

Carrall and Hastings, just shy of Pigeon Park, in the heart of Vancouver’s grim Downtown Eastside. I’m walking home from Gastown with my two young boys, aged six and three. As we approach, a rough looking woman makes a clumsy attempt to hide her crack pipe.

“Kids on the street,” she yells up and down the block, “Kids on the street!”

A few of the other dodgy characters try to hide their drugs, too, or shuffle a few steps into the alley until we pass. I smile and thank her. She smiles back, dirty and toothless and old before her time, but it’s clear that she’s happy to see the children, and she tells me my kids are cute. My boys, as usual, fail to notice most of this: the drugs, the mental illness, the human wreckage all around them. This is probably for the best, growing up, as they are, next to the worst neighbourhood in Canada.

For the past six years, our family has lived just around the corner from the worst stretch of Vancouver’s notorious East Hastings Street, near dismal Pigeon Park. Curiously, we chose to move here while my wife was expecting, about nine years ago. We had found a condo that we could actually afford, so we purchased a unit pre-construction, gambling that the neighbourhood would improve significantly by the time our building was completed. It didn’t. We moved in anyway, hopeful that change was just around the corner. It wasn’t, although the area would improve, eventually. But first, we would spend a few years raising our children in what could generously be described as a disturbing new community.

Housing prices being what they are in Vancouver, I expect that more families will consider taking a chance on “improving” neighbourhoods, as we did. And they will find, as we did, that addicts don’t make the best neighbours. While every user’s personal story is surely tragic, it remains a fact that addiction does terrible things to people. Junkies steal, they prostitute themselves, they leave needles and feces in the streets. The Downtown Eastside may be home to my city’s least fortunate, but it is also, in many cases, home to my city’s least sanitary, least responsible, and least polite. Anybody who thinks drugs are glamorous should spend some time around here.

If it is true that a parent will always find something to worry about, then the nice thing about our neighbourhood is that one never has to look very far. Take intravenous drugs, for example. To this day, even though Vancouver’s much discussed safe injection site is just a block or two away, I regularly see carelessly discarded needles: in the alley behind our building, on the way to school, just outside the entrance to the local daycare centres. On more than one occasion, I have found rigs abandoned in playgrounds. One morning, at our local bus stop, there were literally dozens of unwrapped and apparently unused syringes left piled in a heap, like a particularly hazardous game of pick-up sticks. Fortunately, I was able to distract my boys and hustle them past (my children are, of course, extremely interested in needles, as they have always been told to avoid them).

Although the vast majority of Downtown Eastside residents are not violent, violence is always a concern: you know it’s rough out there when the dive bars and the flop houses are the legitimate businesses. A police officer drove this point home at a community meeting I attended when we first moved into the area. Addressing a group of new condo owners – many of us clearly having second thoughts – the officer warned against ever attempting to confront a street person: their lives are hard and therefore most carry a hidden weapon of some kind, even if it’s just a sharp piece of metal they found in an alley. Shortly thereafter, as if to illustrate, I watched a rather large woman discourage a would-be aggressor by somehow producing a full sized baseball bat from the inside of her sweatpants. More to the point, about three years ago, some psycho put a three-metre piece of rebar through another man’s head. This took place in broad daylight, just across from the local McDonald’s, where my kids get their Happy Meals.

Luckily, we skipped the McNuggets that day, although we haven’t always been able to avoid the ugly side of the neighbourhood. Fortunately, however, whenever we have stumbled into a potentially nasty situation, my boys never seem to notice it. For example, on one occasion, I was walking to Gastown with my eldest – he was about four years old at the time – and we found ourselves behind a pair of skid row toughs. One of these charmers, the apparent ringleader, glanced back over his shoulder and clearly saw that he was being followed by a small child. He then coaxed an unfortunate pigeon into a small alcove, cornered the poor bird, and proceeded to stomp it to death, directly in front of us. My boy? He was looking the other way, completely oblivious.

On another occasion, in Shanghai Alley with both of my children, we passed a drunk, sprawled across the pavement, penis hanging out, lying in a large and expanding pool of his own urine. I was wondering how I could explain this to the kids, at least until I realized that neither of them had actually seen it. Another morning, on our way to daycare, a man wandered out from behind the Chinatown gate and was immediately struck by a bus. Again, somehow, both boys missed it. They don’t, however, miss everything and, living where we do, they have surely seen more than their share of open drug use and untreated mental illness. Luckily, children are naive: they tend to assume that their parents are in control and that everything is as it should be, and they even can’t begin to imagine what a hooker is or why that group of people might want to huddle around that little glass pipe.

Our boys may be largely blind to our district’s shortcomings, but it is not so easy for mom and dad. When we first moved in, as if to emphasize the sheer crappiness of our new neighbourhood, the only child care we could find was located in upscale Coal Harbour. Each morning, my boys and I would commute from Pigeon Park to Stanley Park, from the country’s poorest postal code to one of its wealthiest. We’d catch the bus in front of Kitty’s Beauty Studio on Pender at Carrall, a very well-used bus shelter, but not, unfortunately, by bus patrons. At most any time of day, even surprisingly early in the morning, there would be an assortment of unsavoury characters holding court. Consequently, my kids and I would often wait for the bus some distance from the actual stop. This occurred frequently enough that one of the regular bus drivers, sympathetic to our plight, offered to start picking us up half way down the block. This worked well, for in truth, the bus shelter was best avoided even when it wasn’t occupied. Filthy items of clothing were left behind with surprising regularity. It was often used as a toilet.

Understandably, children were rare in these parts when we first moved in, and many of the long-time area residents were clearly surprised – and delighted – to see ours. So much so, in fact, that my wife and I had to quickly learn how to politely decline enthusiastic gifts of “recycled” stuffed animals offered by dumpster divers, and how to take it in stride when alarmingly filthy individuals, clearly intoxicated and probably insane, wanted to exchange baby talk with our little ones.

So why did we stay here? I suppose it helped, as middle class parents moving into a decidedly un-middle class neighbourhood, that our hopes were not high in the first place. Furthermore, we were encouraged by the fact that families had been raising children in nearby Chinatown and Strathcona, without obvious ill effect, for a very long time. But mainly, we were able to ride out the rough patches because we always knew that our time here was optional: either the area would improve or we would leave. Many will never have that choice.

Recently, parts of the neighbourhood have improved, and significantly. A couple of years back, the completion of several residential towers quite rapidly turned our formerly desolate block into an up-and-coming district, complete with overpriced French bulldogs. There are now coffee shops and grocery stores and dry cleaners and pizza places where, not long ago, there was nothing. For years, we were the only fools braving the local playground, dodging the winos and crack heads, checking beneath the monkey bars for needles and broken glass. Today, there are always kids around, there’s a beautiful new daycare just across the street, and funding has just been announced for an elementary school. Heck, these days, even the walk to Gastown isn’t quite as scary.

It took a while, but we bet on gentrification, and – knock on wood – it’s happening. Of course, when a toddler is taken hostage at a daycare, as happened about a year ago just a few blocks away, you do have reservations. And, to be sure, if anything serious had ever happened to a family member – or if my kids paid more attention to their surroundings – I might be telling a completely different story. But, with hindsight, this was a good move for us: we own an affordable home in downtown Vancouver, and I don’t think we could have pulled that off if we hadn’t been willing to take a chance on a dodgy neighbourhood. So, if any parents out there are considering a similar choice, it can be done, but you will need to stay alert, avoid the clearly problematic individuals and situations, and hope that your kids won’t be exposed to anything too extreme. And good luck, because the next wave of real estate refugees will be moving even closer to ground zero.

National Post

Sleepydad’s Dividend Paying Stocks

I’ve been reading about dividend paying stocks recently from Young and Thrifty and Dividend Ninja and i would like to share with you some of the dividend stocks that I currently own.

  • iShares S&P TSX Capped Cmpst Indx Fnd (TSE:XIC):  Yield 2.37%
  • Fortis Incorporated (TSE:FTS): Yield:  3.72%
  • iSHARES SP TSX SMALLCAP INDEX FUND(TSE:XCS): Yield:  1.62%
  • Goldcorp Inc. (TSE:G):  Yield:  1.24%
  • Morneau Shepell Inc (TSE:MSI):  Yield: 6.83%
  • Husky Energy Inc. (TSE:HSE)  Yield 4.74%
  • Apple Inc. (NASDAQ:AAPL)  Yield: 1.75%
  • Royal Bank of Canada (TSE:RY):  Yield: 3.99%
  • Talisman Energy Inc. (TSE:TLM):  Yield: 2.09%
  • Potash Corp (TSE:POT): Yield 1.23%
  • Ishares SP TSX CDN DIVIDEND IDX FD (TSE:CDZ) :Yield 3.1%
(*Yields are calculated or from Google Finance)
Going back to the beginning (about 15 years ago), I started off with mutual funds for my RRSPs bought through a financial advisor.  After going through about two financial advisors (being dumped by advisors as they moved on and didn’t take me with them), we finally were shifted to an advisor that we seemed to like and thought we would go with her for the long term.
However after learning about their mutual fund fee structure: management fees, commissions, back ended loaded etc. I decided to get away from mutual funds and go for a cheaper alternative ETFs. However my advisor was not supportive of ETF, and I came to a conclusion that she wouldn’t be earning anything if i was to buy ETFs from her.  I started to become skeptical, but gave her the benefit of the doubt for another year or so.  But early last year, I finally decided to go on my own, I took my invested RRSPs out of her hands and into my own self directed RRSP.
Unfortunately, can’t say i’ve picked all winners for the preservation of capital.  My worst so far is Talisman (down over 25%) and iSHARES SP TSX SMALLCAP INDEX FUND (XCS) (down 10%).
Best picks are: Ishares SP TSX CDN DIVIDEND IDX FD (CDZ)(up 11%) and of course Apple (up over 30%) and their recently declared dividend.
I’m looking to pick up some stable American dividend paying stocks (ie, Johnson & Johnson, Procter & Gamble, etc.), however they seem a bit high.  Any others worth a look right now?