Money Links – Free $150 Gift Card Offer, Higher Interest Rates, TFSA Taxation and Warren Buffett

PC Financial World Elite MasterCard $20 + $150 Gift Card Freebie!

The PC Financial World Elite MasterCard is perhaps the best no annual fee grocery credit card out there.  It offers 3% cash back when shopping at Loblaws group of stores  (Loblaws, Dominion in NL, Real Canadian Super Store, No Frills, PC Mobile, and Shoppers Drug Mart) and you can redeem $20 or more towards products in their group of stores. For Loblaws shoppers out there, this card is a winner, especially since it doesn’t have an annual fee.

So what’s the freebie?  If you sign up through Rate Supermarket, for a limited time you get 20,000 PC points sign-up bonus which is equivalent to $20 in free groceries PLUS a $150 gift card towards select retailers – Starbucks, Cineplex, Cara Restaurants (Swiss Chalet, Montanas, Milestones etc) or iTunes.  This is a Canada Day 150 promotion and is the highest gift card amount that I’ve seen with this free credit card. The last few promotions were $50, $75 and $100 gift cards.

I’m guessing that this is as high as it gets so jump on before it expires.  Disclaimer – my spouse signed up for this card a little while back and we use it exclusively whenever we visit Loblaws/Dominion.

Money Links

With stronger Canadian economic numbers and interest rates at historic lows, it’s only a matter of time before interest rates start rising again.  The bad news is that mortgage rates may start to creep higher, but the good news is that interest-bearing savings accounts should get a little boost.  I often wonder about young people who have purchased highly leveraged houses thinking that today’s rates are normal.  If rates revert back to a historic mean of 6% (from 1990-2017) vs today’s bank prime rate of 2.7%, I’m thinking some owners may be challenged to keep up with their payments.  Mark from My Own Advisor describes his plan of attack on dealing with higher interest rates.

As many of you know, I consider tracking net worth (how to track net worth) one of the more important tools in your journey to building wealth.  It gives you a benchmark and direction for your wealth building strategies.  Tracking my net worth on this website allowed me to stay focused on my goal and perhaps even accelerate the process.  There are many others online that track their net worth, the latest being Rob from Boomer and Echo.  He has a big goal of freedom 45 with a current net worth of $575k.

One thing we know is that investment gains within a TFSA are tax-free (check out your TFSA contribution room) – or are they?  CRA is currently clamping down on big gains and frequent trading within a TFSA.  Essentially, the rule is that if a TFSA carries on like a business, then it must pay tax like a business.  The real question is what activity constitutes as business activity – Jamie Golombek and the Financial Post has some answers.

In a recent post, I talked a little about Home Capital and their risk of insolvency.  Well, Warren Buffett came to the rescue and injected a company with liquidity.  While the deal was highly dilutive, which usually brings share prices lower, the Warren Buffett brand drove the stock price much higher.  Mr. Buffett essentially doubled his money upon signing the deal.  More details here.

If you want to keep up with the latest financial news, check out my Twitter feed.

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FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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4 years ago

I love my PC Financial MasterCard, we use it for our grocery purchases etc. and we already have redeemed $190 in free groceries for 2017 (we use it in conjunction with the PC Points card). I also find net worth tracking strangely satisfying and religiously calculate it monthly :) Interesting about Warren Buffett and Home Capital, I wouldn’t have thought he would have been interested in Canadian stuff so much, but he certainly scored a deal. I was following Marc Cohodes and short selling plan for Home Capital for the longest time. Now he’s onto Exchange Income Fund which I used to own.
4 years ago

Funny how you mention rates starting in the 90s. My first mortgage was in the 80s I had was with top notch credit at National Bank of Canada and it was about 13% with an 80% LTV against the property. There is a rate to reference when speaking what rates can do.

Robb Engen
4 years ago

Thanks for the mention, FT! Hope you enjoyed the long weekend. Happy Canada Day!

Leo T. Ly @
4 years ago

Three percent cash back and no fees on a credit card is a great deal. I am always looking for a great cash back credit card and tries to earn as much money as I can when I spend. I always pay my balance in full every month so I don’t worry too much about the interest rate on the card.

I have been tracking my net worth for almost ten years now and it’s really keeping me disciplined with my money. I would love to achieve freedom 45, but I my goals can be reached with freedom 48, which i am happy that it’s still on track based on my latest net worth review.

I am hoping that the rise in interest rates do not affect my early retirement plans too much as I borrow to invest.