Air Miles is a scam. At first it cost 100 points to get a $20 certificate for Metro (for example). Suddenly it was 125. Then 140. Then 170. Then it disappeared. So save the points for some other "dream" reward. Maybe a Boston Pizza. Getting close. Poof, it's gone. Then another item, and yup, gone. Hey, iTunes! Next day, gone. Rats. Nothing remotely interesting. Okay, give me the movie vouchers. Nope. Gone. All without notice.

Clearly they are getting rid of the "dream" rewards, but not allowing the points to be used for the "cash" rewards. So in due course all those saved up points will simply expire and the "dream" will end up being just that.

What a ripoff.

I've been saving them since 1998 and I have enough for a single round trip flight anywhere in the USA. Not bad for free. One day I'm going to spend them and then throw out the card - not worth the wallet real estate carrying it for 15 years to earn about $400 - $0.10/day!

Having enough points for X is not the same as having X. As I have learned at least four times when I've had almost enough, just to find the award has moved from Dreams to Cash (but the points can't move), or has increased in points cost, or has disappeared entirely. The carrot before the donkey. To my great shame, I've been the donkey.

But, but the ten cents!!

Air Miles is not a scam. My points have paid for three flights over the past five years.

How is it a scam? You collect points at no cost to you and they let you exchange those points for items if you want. Now if you are determining your purchasing decisions based on air miles, you are scamming yourself.

See above. They keep moving the target or removing it altogether. I prefer honest programs. I've flown to Portugal, Australia, Hawaii, Hong Kong and Victoria for free on Aeroplan and its CP predecessor. I've stayed at numerous Marriott and Hilton properties for free on their programs. Right now I'm on a free stay in a magnificent Hilton in Giardini-Naxos, Sicily typing this.

But with Air Miles, accumulated only with my normal booze purchases, I have had almost enough points for a Boston Pizza, a Dyson vacuum, ITunes or movies, but when I go to cash in, they're gone. The only choice is to accumulate more, for other more expensive items - which will also be gone, or abandon the points. Like I said, a scam.

I only use them for trips and have done very well so far. You need to know how to accumulate lots of points quickly and use them wisely like longer haul trips not short ones.

I've redeemed for a Dyson vacuum and many tanks of gasoline for my truck.

I also got a great Dyson Vacuum and a Bose wave radio, Air miles are great for merchandise rewards!

I have never used them and then go fly some were, No thanks not in today`s world.

It is interesting how people think government money is "free", I guess that just shows what side of the tax ledger they live their life on.

It is the next best thing...At least it is a few of our tax dollars being returned directly to us! Not taking advantage of RESP grant money is just plain stupid really! It costs 2, 000.00 per year to recieve 400 more per child towards their post secondary education....ALL post secondary qualifies NOT just university as well.

$500 more per child

Point number 3 is fallacious. Government programs are not funded with "free" money; they are taxpayer-funded, and as such are not "free".

It could be phrased as "money you are entitled to under current policy that you might not know about" but big words like "entitled" might confuse the same kind of people who aren't aware of these programs in the first place.

Here is another free money tip:

Its seems popular for people to be madly paying down their mortgages and ignoring their RRSPs.

They take every spare dollar and dump it against their 2% mortgage. Then on income tax day they take the same dollar and give 25 -30% of it to the government.

Hey! here's an idea! Maximize your RRSP and then (if you must) put the refund against the mortgage. Or better - diversify your investment out of just your house and into some prudent holding within a TFSA.

what complete financial garbage. here's an example that puts a hole in the "invest" instead of save technique.

A guy makes 80K per year and is deciding between paying off his house or investing in mutual funds. After being told that he would be unwise to
pay off his house, he invests in a mutual fund. Then lets assume the MF earns a return of 8.5% (which is the average and assuming he stays on top of his portfolio, which most people don't). And lets assume his mortgage interest rate is about 5 percent.

While the financial illiterate will say yes. 8.5% is better than 5%. But in reality the answer is no. First the 8.5% is taxable income and you lost 1/3 of it to the taxman. That is not taking into account the risks of the stock market, especially when you let some one else take care of it for you. A person who doesn't care if it is your own money. At which point, instead of breaking even, you're at a loss. Then there's the fact you are paying 10s of 1000s of dollars in interest. WHereas if you payoff the house first and then invest, you end up ahead.

Get rid of debt and you can afford to pay a few thousand
dollars into the mutual fund each month. At that point, your money will
grow faster than you thought possible. Instead of splitting it up between debt and investing.

If you make 80k in BC you will give 32.5 % of every dollar between 75k an 80k to Ottawa and 27.9% of every dollar between 45k and 75k (appox).

If you contributed to an RRSP you would get back these highest marginal tax contribution; in this example 32.5 and then 27.9%. In retirement, even if you retained the same income level you will withdraw the funds at your average tax rate of about 22%, perhaps even better if you use income splitting with a spouse.

All you are saving by paying down a mortgage is whatever minor interest you may be paying, Today it is very low and not likely to go up quickly. My augment is to diversify your investment out of just your home into the market and save significant taxes in the bargain.

FYI the average historical return of equities is more than double that of real estate.

Just wait until its time to use some of that money in your RRSP. Then you may look back to those maxing out your RRSP contribution days with despair.

I get back 43% of what I put in.

When I take it out during retirement, I'll be in a lower tax bracket, and probably pay income tax at a lower rate.

At the same time, I have money that is growing, tax free (until redemption).

I don't really see the downside, unless you find yourself with a very large income late in life, in which case you still pretty much break even.

So as an Albertan, I contribute to my RRSP enough to get out of the 39% marginal tax bracket... IE I put $1 in and I get back $.39. Then I retire and withdraw at the 32% marginal tax bracket... IE I withdraw $1, and give the government back $.32. Interesting that's quite the free spread, and magnified over years and years.

I always thought despair was an emotion for a funeral... maybe I've been doing it wrong all these years. Thanks rjb67!

Agreed. While not free money, investing inside of a registered tax haven does help you keep more money in your pocket. Which in the moment is nice isn't it? I always love the "well they will just collect it later" ideal people have, as if saving $5 or 10 or 20k a year in a tax sheltered investment is a bad idea. Yes you will pay some tax on the other side, but that tax, assuming you have invested wisely and earned a healthy return will be a pittance compared to the tax you saved all those years inside the RRSP. OH and perhaps seek out the advice of an accountant, and a financial advisor whom can help you not only retrieve those dollars lost to witholding and income tax, but keep that money working in your favour.

A RRIF is not the only way to get money out of your RRSP, there are far more efficient ways to do it.

Regardless of the tax incentive, investing in an RRSP isa always o good decision since it means you have the opportunity to live your retirement in the same standard you lived during your working years!

wish I could. but wife and I do not declare any of our income as employment income. So we get no RRSP alotment. Nevermind we net north of 300k. Accountant said it is better this way.

I beg to differ, NO employment income means no Pension eligibility except OAS which will be clawed back. Salaries should be declared up to maximum RRSP eligibility which would also be CPP eligible. RRSPs should be purchaes each year as well unless you both plan to work until you drop dead!

There is no 'free' money. Govt simply takes it from one group of taxpayers to give it to another.

Here is a free money tip for you. Grow marijuana. Whoever said money does not grow on trees did not know about this little diddy did they

Five ways fools miss out on free money. This article will only help the clueless.

GOLD

I like PC for points. I agree that scholarships are overlooked.

yes. Costco/Amex recently parted ways. So I signed up for PC card to use at Costco and Superstore. They granted me the black double points card off the bat. I buy gas and get $0.07 / L back in grocery money. Better than Costco's Amex deal. Usually use my Scotiagold visa for most purchases, but going to try the PC MC for a month as see how the cash works out in comparison. Scotia usually nets me about $6k/yr in cash vouchers (business and personal expenses paid with visa)

Don't know about scholarships today, but my wife had her whole UBC science undergrad paid by scholarship, and maybe half of her PhD too.

That scholarship advice is bunk. Maybe in the 1980's.

I earned many scholarships and bursaries when I was in college in the mid 90's.

life experience has taught me nothing is free in life and everything has it's price.

What price are you paying for the air you breathe? For that beautiful sunrise this morning? I think the bigger point you're missing -- despite your vast 'life experience' -- is that, while everything has its [sic] price, not everybody pays that price.

My PC points have added up rather fast, and you're virtually guaranteed to use them since you'll always need to buy groceries and you can redeem as little as $10 worth, rather than "saving" for something and hoping the points don't expire in the meantime....

You are all very suspicious, lol...

The RESP are good, particularly for lower income families, as the grants are income tested. If your kid doesn't go to post secondary school you have to give the grant portion back. One important caveat to this: DON'T use the companies that requires fees for set up and have scams regarding withdraws or missed payments. If you use a major bank, you should be fine.

When I was in the Financial business I could never understand why parents didn't open RESPs for their kids!? ESPECIALLY the poor families! Even if you NEVER PUT IN A DIME the government will pile in the grants! There is no down side!(except perhaps for the tax payers lol). In 10 or 15 years never putting a dime your kid could have a couple of grand, at least it will cover the books.

A notable missing 'free money' vehicle here is TFSAs. Broadly misunderstood and underutilized. Make it part of your retirement plan. A TFSA will likely be best utilized for the longer term, growth portion of your portfolio as there is little point sheltering the $3.73 of interest earned on your spring vacation fund.

Is that correct? I thought the grant was made as a percentage of the amount you contributed? So 20% up to $500 per child per year. Therefore on $2500 you get the maximum grant...did I miss something? They don't give you a grant just for opening the RESP....

You are correct. There is no money for just opening up an RESP.

Incorrect. Depending on your province there IS Free money. Alberta pays $500 just to open it. Then they throw in an additional $100 at ages 8, 11, and 14 as long as you deposited $100 the year before that age.

And don't forget if you're low income, you will get $500 as a learning bond, and $100 each year up to age 15... without any contributions at all.

Ignorance is why people don't open RESP's. Ignorance. And don't get me started on the people who seem to believe "you lose it all if your kid doesn't go to school".

Nothing in Ontario. Just 20% of annual contributions up to $500.

When I was setting them up in BC there was an initial $20 from the government to cover 'set up fees'. We just threw it in the account as these were not really money makers for the firm, more a customer service thing. Then if your income was under a certain amount, the government would throw in another $100 annually, and I seem to recall a provincial one-time grant of some amount - like $500.

Additionally the feds would toss in 20% to whatever you put in up to a yearly maximum.

I opened accounts where parents put in NO money of their own and just collected the yearly grants.

As far as I know the max grant is 400. thus making 2000 the amount that should be contributed annually per child.

I agree strongly about the TFSA.

I hold blue-chip dividend-paying stocks in my TFSA. It's up to over $45k (was 47 before the recent correction!). By the time I retire in 30 years, if the government hasn't abolished it, and if I keep growing at the 100-year average rate, I'll have $700k or more, and then I'll convert it to an income paying product and get $35k/yr tax-free for the rest of my life... That's $3k/mo that DOESN'T increase my marginal tax rate!!!

And then use the TFSA or a portion thereof to top up your RRSP at tax time.

Well Damn.... I paid my house off in less than ten years and then invested the mortgage payment until I retired. I guess I lost a fortune .... no the bank lost money. I don't take on debt for any reason. I pay for what I buy when I buy it. I don't own an RSP and I wont own an RSP. You might get to a better tax bracket but when you add the penalties and services charges for withdrawing your money its worth next to nothing. I have invested my money over a wide portfolio and the one thing I make sure of is people who have not earned my money don't get my money.

Technically, the bank didn't lose any money. They just didn't make as much as they could have because you paid back the mortgage in less time. But you did pay back the entire mortgage the bank lent you, plus some interest.

If the bank had lost money, it would have been because they lent you more than you repaid.

They didn't make as much interest. I cut 10 years off the repayment but doubling up. something I was allowed to do without penalty. By starting with the first payment I avoided a lot of compounding.