This and That

1. You’ll be paying less interest on variable-rate mortgages and personal loans after the Bank of Canada cut interest rates by fifty basis points (0.5%). The Bank also sent a clear signal that further rate cuts should be expected by noting, “further monetary stimulus is likely to be required in the near term”. The major banks cut the prime rate by a similar amount to 5.25%.
2. How likely it is that a private member bill to provide a tax deduction for RESP contributions would be implemented? Also, how would it work? As it stands now, contributions to a RESP are not taxed upon withdrawal (since no tax deduction was allowed on contributions) and would the new bill mean that contributions would now be taxed in the hands of the beneficiary? What would happen to contributions already made to existing RESP accounts?
3. Why do we find it so hard to delay gratification and save money? Jason Zweig reports on new research that sheds some light on the issue.
4. Jeremy Siegel thinks that the current market decline could throw up “the buying opportunity of the decade for investors”.

What Bloggers are saying about the TFSA:

1. SteadyHand’s Tom Bradley calls the new TFSA “the RRSP for the Facebook generation”.
2. Canadian Financial DIY says “Hooray” for TFSAs. As does Growth in Value.
3. Canadian Dream tackles the RRSP or TFSA or Mortgage question.
4. Canadian Money Blogs Reviewer calls the TFSA a huge gift for investors.
5. Canadian Mortgage Trends compares saving for a downpayment in a TFSA with a RRSP Home Buyers Plan.
6. Michael James compares TFSAs with RRSPs, how TFSAs can be used for income splitting and even his grandma’s take on the TFSA.
7. Preet Banerjee sketches out some initial strategies that can be employed with TFSA.
8. The Financial Blogger compares TFSA with RRSPs.
9. Other reaction from Million Dollar Journey, Four Pillars, Thicken My Wallet and Financial Jungle.