Topic: Entering the CF and YOUR Money....

[Morgs]

Whilest we are on the subject of money i have a question about back pay. I have been hearing a numerous people on this forum saying the CF owe them back pay. Does this only account for Reserve force, or are Reg force personnal affected by this?

cheers.

[Rider Pride]

Whilest we are on the subject of money i have a question about back pay. I have been hearing a numerous people on this forum saying the CF owe them back pay. Does this only account for Reserve force, or are Reg force personnal affected by this?

Pay issues, as such, are discussed in the Admin site.

This thread is to talk about money, where to direct it before and after it hits your bank account.

[Sundborg]

Does anyone currently own some mutualy funds at RBC?  If so, what one(s) are you in and how has the perfromance been on that fund in the past little while?

[Otto Fest]

On purchasing a new home while renting out another... checked into this years ago as I was exactly the same boat.  The banks are very, VERY Picky about this.  Your renter could take off at any time leaving you high and very dry quickly, with two mortgages.  The last thing the banks want is a repo.  At a different time I had a reliable friend renting my basement.  When he left his replacement was not.  The couple of hundred I was used to getting each month 'for free' turned into thousands lost after cleanup.

Next point - taking out RRSPs to pay for your down payment.  Been there.  Wouldn't have done it.  They allow you 15 years to pay back your RRSP (and you don't get the deduction again, of course) or it is considered taxable income.  As most of us will see our incomes go up due to inflation without comensurate changes in tax brackets, a higher percentage is paid in taxes.  It's a pain in the a** at tax time as well.

[Griswald, DME]

Thanks for the heads up on renting out the old place.  You're actually the first person who said the banks are very picky about this, what bank did you deal with, out of curiousity?  It does make sense about them being picky though as they need to look after themselves.  I wonder if it has to do with the current market?  Where our condo is the vacancy rate for rentals is near zero, so I'm hoping they will give me some leeway on the application, but we'll see... it may not make an ounce of difference.

Side note, I deal with mortgage brokers only, not directly with one bank.  It highly increases my chances of getting a decent interest rate and decent approval limits.  My friends (he's Cpl same as me) just received 4.5% interest rate on his, not bad at all.  Plus I've had really bad experiences with major banks (one in particular asked me three times if I want life insurance for my car loan, I told her NO very clearly and she ended up adding it to the application anyways) so I refuse to deal with banks directly.  Gotta love brokers!

DME

[Otto Fest]

The banks I had dealt with were the Royal and Bank of Montreal.  A second mortgage seriously reduces the percentage you have down and may lower your ratio to less than 25% which means you have to pay the CMHC penalty.  Conversely, if you have a primary residence that's say, 50 - 60% paid off, then go for it.  Just remember you now have the obligations of a Landlord!

[armywife411]

Does anyone currently own some mutualy funds at RBC?   If so, what one(s) are you in and how has the perfromance been on that fund in the past little while?

My husband has had a Royal Balanced Mutaul Fund for 9 years and can't wait to pull it out this summer. He has made nothing. Actually he's down and he has never gone above the initial investment by more that a few dollars.

Hope this helps.

[Rider Pride]

If your investing at the beginning of your career, then you should be looking in the long term, 10+ yrs. Its best to find a no load RRSP and maintain a monthly amount for a long period of time. Don't follow the media because the media is a step behind where the money is.

Because of patriotic purposes, go with Can Equity, as those types of funds invest in Canadian companies....

and thats the extend of my financial advice.

[Sundborg]

My husband has had a Royal Balanced Mutaul Fund for 9 years and can't wait to pull it out this summer. He has made nothing. Actually he's down and he has never gone above the initial investment by more that a few dollars.

Hope this helps.

That's too bad.  Hopefully it will go up eventually, most ones do over time.  I am currently in the Monthly Income Fund, and so far it has done me well.  I havn't been in it too long, but I've made some profit so far.
Here is a link to the RBC funds page :   https://www1.royalbank.com/cgi-bin/rbaccess/rbunxcgi?F6=1&F7=5g&F21=IB&F22=5g&lblLanguage=EN&lblTabClicked=Price&lblSeries=A&lblSorted=CATG_ORDER&lblPubAccess=Y&

Each day they are updated and shows how much each fund has gone up or down aswell it shows the units and prices and % change.
I was just taking a look at the RBC Energy Fund and I was amazed at how much it has gone up over the past few years.  I'm thinking about getting into that one if I get a few bucks together I just may.  The only thing about that one it is prety high risk and one could lose a lot of money on something like that over just a short time.  To me it looks on a pretty steady incline though over the past little bit.

[Garbageman]

Each day they are updated and shows how much each fund has gone up or down aswell it shows the units and prices and % change.
I was just taking a look at the RBC Energy Fund and I was amazed at how much it has gone up over the past few years.   I'm thinking about getting into that one if I get a few bucks together I just may.   The only thing about that one it is prety high risk and one could lose a lot of money on something like that over just a short time.   To me it looks on a pretty steady incline though over the past little bit.

A couple of points:

1.  If you're investing in an RRSP, then theoretically this is a long-term move, so looking at your fund's performance every day will only drive you to drink.  2-5 year returns are far more useful indicators.

2.  That Energy Fund has already made a pile of money.  This means that you're now going to be buying high.  Although the fund will likely still make more money for you over the long-term, getting in now when the fund is peaking could mean that it'll be many years before you start to see any real gains.

Just remember that buying even "low-risk" funds is a speculative move.  The only thing guaranteed are GICs and bonds, and they aren't going to make you rich any time soon.  If you're going to put your money in something with some risk, you'll likely make more, but you have to ask yourself "can I afford to lose this?" (I'm a once proud Canada 3000 shareholder).

[Sundborg]

Of course looking at the ups and down could make one drive to drinking, but myself, I like to see daily activity.  I also lke to keep an eye on other funds too.  I do agree that one should watch the 2-5 year growth rather than just a day to day basis.

Buying into the engergy will likely still make one money over time due to shortages of natural resouces and the rise of prices. If one were to buy some of the energy fund today, you will still gain the same amount in returns like someone who bought it previously at a lower cost if it were to go up the same %.  These gains, however, would be respective to your amount invested.

[Otto Fest]

I owned some of the energy fund long ago when Royal Trust still existed.  I made 40% in one year and bailed, but if I had the nerve to stay in would've seen it go up another 80%!  It did crash after that though...

I had been very lucky as I moved funds out of the Japaneses market just before the crash of 87.  I put the cash in the Bank of Montreal Mortgage fund and made a good return as the market lost 25% that year.  On the flip side, I had a chunk of change in Bre-X, and the lawsuit keeps going.

[Recruit Konyi]

I am starting bmq in a couple of weeks and wth my Fathers help I have been trying to outline what I am going to do with my money from the get go. My Dad is a self proclaimed financial advisor, mostly because he has 'been there and done it all'. Anyways, I don't have any idea how much money is taken off of my pay cheques for such things as room and board, taxes (what percentage), the CPP and the forces pension plan. If anyone can enlighten me it would be most helpful. Also any other deductions and vacation pay would also be appreciated. Thanks

[Rider Pride]

Don't worry about producing an actual budget until you are complete you training and at your first posting for atleast 3 months.

Reason I say this is because until your done training, you pay will vary depending on where you are. Once you are posted you can track you first 3 pay guides for all the pay and deductions more accurately.

Until then, plan to save $50-$200 a month, depending if you have any other debts/family who need you money as well.

I am starting bmq in a couple of weeks and wth my Fathers help I have been trying to outline what I am going to do with my money from the get go. My Dad is a self proclaimed financial advisor, mostly because he has 'been there and done it all'. Anyways, I don't have any idea how much money is taken off of my pay cheques for such things as room and board, taxes (what percentage), the CPP and the forces pension plan. If anyone can enlighten me it would be most helpful. Also any other deductions and vacation pay would also be appreciated. Thanks

To answer you question, the CF will do your deductions for you, taking of at the source. You need to be concerned about your net (take home) pay.

If you have an place to put the money, then bring the RRSP or investing acct number to Basic with you and ask your clerk to transfer money from your pay direct to your account, that way whatever pay you get into you spending acct is yours.

[Sundborg]

I am starting bmq in a couple of weeks and wth my Fathers help I have been trying to outline what I am going to do with my money from the get go. My Dad is a self proclaimed financial advisor, mostly because he has 'been there and done it all'. Anyways, I don't have any idea how much money is taken off of my pay cheques for such things as room and board, taxes (what percentage), the CPP and the forces pension plan. If anyone can enlighten me it would be most helpful. Also any other deductions and vacation pay would also be appreciated. Thanks

As a recruit on your first pay scale  you will be making around $600 each pay cheque, that is of course after all deductions have been taken off, including rations and quarters.  Once you are taken off rations after basic training sometime, you will be makeing around $750 each pay cheque.  Keep in mind this is all money in your pocket to spend.