It is, perhaps, unsurprising to see that bonds have held up their value in the past quarter but it is surprising to see that US markets have held up relatively well compared to Canadian and other foreign markets. Note that the Sleepy Mini Portfolio started out with an initial investment of $1,000 in August 2007 and $1,000 was added to the portfolio every quarter ever since. A total of $17,000 has been invested in the portfolio and as of November 30, 2011, here’s how it looks:

TDB909 – Canadian Bonds – $3,622 (20.0%)
TDB900 – Canadian Equities – $3,428 (19.0%)
TDB902 – US Equities – $5,719 (31.6%)
TDB911 – International Equities – $5,315 (29.4%)
Total – $18,083
Total Invested – $17,000

We’ll now add another $1,000 to the portfolio and rebalance it according to our original asset allocation — 20% bonds, 20% Canadian stocks, 30% US stocks and 30% international stocks — using this rebalancing spreadsheet. Here are the results:

Transactions

TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $194.23.
TDB900 – TD Canadian Index (e-Series) – Buy units for $389.12.
TDB911 – TD International Index (e-Series) – Buy units for $416.66.

We will not be adding any new money to the TD e-Series US Index (TDB902) because the new addition ($6.39) is much less than the minimum additional investment of $100. So, we’ll simply add that amount to the new money added to the TD e-Series International Index (TDB911) fund.

In a comment in one of the earlier posts, a reader wondered how much this portfolio has returned since inception. Using the Excel XIRR function, the annualized return works out to 2.8%. Hardly earth shattering but it is early days for the portfolio yet. I would expect a portfolio such as this to return 3.5% in real terms over the long term.

Related Reading:

• Sleepy Mini Portfolio Q2-2011 Update
• Sleepy Mini Portfolio Q1-2010 Update
• Sleepy Mini Portfolio Q1-2011 Update
• Sleepy Mini Portfolio Q2-2010 Update
• Sleepy Mini Portfolio Q3-2011 Update

Sleepy Mini Portfolio Q4-2011 Update is brought to you by Canadian Capitalist — Helping you to invest & prosper.

The credit system in Canada is notoriously unfriendly to newcomers. Immigrants are often disappointed to learn that their credit histories in their home country are worthless. For some, the whole idea of building up a good credit history is foreign. “Building credit is the number one challenge for my clients who are coming from China,” says Wendy Seto, a private banker with RBC. “They don’t understand the concept of credit history, because back home, you show you’re capable of paying a debt by having a big deposit in your bank account, not through your payment history.”

Your first Canadian credit card

If you’re still in your home country and planning to immigrate to Canada, it’s worth looking at developing a relationship with a global bank. HSBC, for example, has banking packages aimed at globally minded citizens. Their Premier and Advance packages allow you to build up a credit history that will be applicable if you apply for HSBC mortgages, credit cards and loans in Canada. Depending on what country you’re coming from, American Express may also allow you to transfer your credit card to Canada.

Once you arrive in Canada, try to get a credit card quickly. If you’re meeting with a bank manager, bring any documents that show you have a good track record for paying your bills. Some banks have multilingual staff who can assess foreign documents.

If you’re turned down, ask about getting a secured card, where you give the issuer a deposit. It’s also a bit easier to qualify for cards from department stores such as The Bay and Canadian Tire, but be sure to pay off the balance each month, as these cards have very high interest rates.

If you’re coming from the U.S., your credit history can’t be combined with your credit history in Canada, but that doesn’t always mean you need to start from scratch. Unbeknownst to many, “the credit card company here can actually call the credit bureaus in the U.S. to get your credit history,” says Camon Mak, director of multicultural markets at RBC. “It’s not perfect, but in the majority of cases, it’s simpler than if you’re coming from another country.”

Once you’ve got a card, be sure to use it. “New immigrants who aren’t used to having credit cards tend to use it only for emergencies,” says Nick Noorani, an immigrant entrepreneur who gives workshops on the secrets of immigrant success in Canada. “If you keep the card in your wallet and don’t use it, you’re not building your credit. When you get a card, start using it every month and pay off the entire amount each time.”

Rodolfo Martinez, a former financial planner and current executive director of the Ontario Immigrant Network, advises newcomers to take out one or two credit cards or lines of credit that total around $3,000. “Make sure you make at least the minimum payment each month, and if you have to carry a balance, never let it go over half of your available limit.”

The irony is that once immigrants do establish a good credit rating, they can be flooded with credit card offers. At first Fernando Margueirat, an immigrant from Buenos Aires, Argentina, was rejected from getting a card at virtually every major bank. But after finally getting one and using it responsibly for a few years, he was swamped with applications. “It was kind of comic, because I got excited and started applying for cards. At one point, I had twice my annual salary in credit.” Margueirat decided to close some accounts before applying for a mortgage: a wise move, as mortgage lenders assume that people with access to too much credit are at risk of defaulting.

You always need to remember that while credit is important in terms of getting established in Canada, it has also driven many into a cycle of debt that has crippled their future. Credit card interest rates in Canada are high compared with other sources of debt, so never purchase something on a card that you can’t pay off quickly. You can find the best card based on your spending patterns by visiting our website at: www.moneysense.ca/creditcards.

Read the next part in the series: A home of your own

Consumers have become much more aware of prices as they deal with higher levels of unemployment and news reports of a wobbly economy. Manufactures seem to have decided as one not to raise prices. Instead, they’re offering you less for the same price, but in shiny new packaging.

There are all sorts of reasons for food prices to go up. It costs more for the stuff itself and transportation costs have gone through the roof. Manufacturers are in the business of making a profit, but their sneaky smaller-packaging strategy seems designed to trick us. Hey, those Stupid Consumers won’t notice if we’re shorting their container of juice by a whole glass if we give ‘em a sleek new plastic jug!

Notice!

Whether it’s eight fewer diapers in the box, 7 oz less of orange juice, or 10 sq. ft. less of toilet paper, consumers are starting to notice that the new packaging is disguising the fact that manufacturers are shaving up to 20% of what they used to deliver.

Some changes are so small you might not notice. When the tuna can changes from 3 oz to 2.6 oz that might just slip right past you. And you might even welcome the change if the ice cream container you wish you hadn’t bought now has 2 oz less ice cream! But you should at least know so you understand why your shopping dollars aren’t going as far as they did just weeks ago.

It’s not enough to watch prices when you’re shopping. You’ve got to keep your eyes on the price per unit to see how much you’re really spending. Otherwise you’ll see your grocery budget go out of whack and you won’t understand what you’re doing wrong. It’s not you. It’s the smaller package that is driving you to buy more.

In response to yesterday’s post on the Renaissance High Interest Savings Account (ATL5000), reader Joseph pointed out that a number of savings accounts are available through discount brokers. These accounts typically pay much better interest than money market funds and may be ideal for parking cash in RRSP accounts. A note of caution: first check with your broker that no fees of any kind are charged for purchasing, selling or redeeming these funds early. I wrote about the Altamira Cash Performer account many years back and the biggest knock then was the steep redemption fees and penalties charged on these funds.

The savings accounts offered through discount brokers have one huge advantage over high interest savings accounts offered by online banks such as Ally and ING Direct. Since the trades executed settle in T+1 day, these accounts offer an ideal way to temporarily park your cash in RRSP, TFSA and taxable accounts and have it readily available for your trades. In contrast, online banks are not practical for registered accounts and it may take 3-4 business days to transfer money to and from an online bank in taxable brokerage accounts. These savings accounts are also a much better alternative to traditional money market accounts because they pay a much higher interest rate. For example, as of this writing, the TD Canadian Money Market Fund sports an yield of 0.42% which is much less than the 1.2% yield of high interest savings accounts.

List of High Interest Savings Accounts (interest rate as of Nov. 30, 2011):

Renaissance High Interest Savings Account (ATL5000): 1.2%.
Altamira Cash Performer (NBC100): 1.20%.
Dundee C$ Investment Savings Account (DYN500): 1.2%
Manulife Bank Investment Savings Account (MIP510): 1.25%
Manulife Trust Investment Savings Account (MIP710): 1.25%
ICICI Bank HIISA (IBN100): 1.40% (Note: Not available for RRSP accounts).
RBC Investment Savings Account (RBF2001, RBF2010): 1.2%
TD Investment Savings Account (TDB8150, TDB8155, TDB8159): 1.25%

Many discount brokers also carry US$ high interest savings accounts. Note that US dollar denominated products are not eligible for CDIC insurance.

Manulife Bank US$ Investment Savings Account (MIP511): 0.20%
ICICI Bank US$ HIISA (IBN200): 0.25%
Dundee US$ Investment Savings Account (DYN400): 0.20%
RBC US$ Investment Savings Account (RBF2014): 0.20%
TD US$ Investment Savings Account (TDB8152): 0.2%
Altamira US$ High-Interest CashPerformer (NBC101): 0.2%

Notes:

1. You can park cash in these accounts by pulling up a quote for the fund code and clicking on the “Buy” button.

2. Most of these funds have an initial minimum investment of $1,000. Interest is accrued daily and paid monthly.

3. Typically, these accounts are sold without any loads or minimum holding periods or any fees of any kind but as noted earlier, always check first before buying.

4. If you have a large cash balance, make sure you split your savings in chunks of less than $100,000 between a number of these accounts. That way all your savings will be fully covered by Canada Deposit Insurance Corporation.

5. If you have a TD Waterhouse account, RBC Investment Savings Accounts in Canadian dollars (RBF2011) and US dollars (RBF2015) which offer an interest rate of 1.45% and 0.45% respectively will show up in the list. However, these are F-Series funds and though TDW will allow you to place an order, it will be rejected later because the fund is only sold to fee-based accounts.

6. The multiple savings accounts from TD Bank and Royal Bank are equivalent. They are offered by subsidiaries and can be used to work around the $100,000 CDIC deposit insurance limit.

7. Most of these high interest savings accounts are available through TD Waterhouse. Your mileage may vary at other discount brokers. For instance, only RBF2010 is available to clients at RBC Direct Investing.

Update (Oct. 22, 2010): RBC now offers a similar savings account. Fund Code is RBF2001. Most of these funds are now yielding 1.2%.

Update (Oct. 31, 2010): B2B Trust High Interest Investment Account. Fund code is BTB100. Not available at TD Waterhouse. (See Rob Carrick’s column How to get some bang for your safe bucks).

Update (Nov. 29, 2011): Updated with new high-interest savings offering at TD Waterhouse. Also check out Canadian Couch Potato’s post on parking cash in your portfolio.

Related Reading:

• The Renaissance High Interest Savings Account
• High-Interest Savings Accounts Revisited
• QuickTip: Park Discount Brokerage Cash in Money Market Funds or Cashable GICs
• New High-Interest Savings Account
• Canadian Tire One-and-Only Account

High Interest Savings Accounts at Discount Brokers is brought to you by Canadian Capitalist — Helping you to invest & prosper.

First, make sure you have realistic expectations, says Dr. Laura Tam, professor of restorative dentistry at the University of Toronto. Whitening can cause sensitivity in the teeth and gums, and it doesn’t work on stained or dirty teeth. Also, most dental work, such as bridges, crowns and partials cannot be whitened—and can even be damaged by bleaching agents.

Be sure to ask your dentist before pursuing any teeth whitening option. “A healthy mouth is paramount before starting any cosmetic service,” explains Dr. Joel Antel, president of the Manitoba Dental Association.

Here’s a look at the most popular choices:

Bleaching gel trays ($200- $400): With this option, a dentist takes an impression of your teeth and gives you a custom-fit plastic tray along with a supply of bleaching gel. For the treatment to work, you’ll need to sleep with the tray and bleaching gel in your mouth every night for two to six weeks.

With professional results and excellent value, this is the best option for most people, says Tam—if you can put up with the inconvenience. “This treatment is considered the most effective according to numerous studies.” That’s because the trays give your teeth the longest exposure to the bleaching agent. Another advantage is that it works well for people with misaligned teeth.

It will take three to five days before you notice a difference, but the results can last one to three years.

Laser treatment ($4,000-$5,000): Laser treatment is an in-office procedure that is fast and effective, but very expensive. It works by applying peroxide and then using a laser to bleach your teeth.

The major advantage is that the results are instantaneous. But there’s no evidence that the results are any better or longer-lasting than bleaching trays. Also, studies show an even higher rate of tooth sensitivity, explains Antel.

Light therapy ($500-$5,000): Similar to laser treatment, light therapy works by applying peroxide and then using light to activate the whitening process. But unlike laser treatment, light therapy services can be found at your local spa or esthetic clinic—at a fraction of the cost.

Dr. Annie St-Georges, professor in the Faculty of Dentistry at the University of Montreal, warns against these cheaper options. “The peroxide used in these facilities is often poorly applied, and in a significant number of cases causes sensitivity in the teeth and gums.”

With light therapy you can expect instant results, but they’ll be no better than the less expensive bleaching gel trays.

Whitening toothpaste ($2-$10): Tam stresses that these toothpastes are effective at removing stains, but that’s not the same as whitening. “To whiten teeth a product must use a bleach, and these toothpastes don’t. Instead, they use enzymes.”

However, because teeth need to be free of stains for whitening to be effective, these toothpastes can be a good first step.

Whitening strips ($16-$40): The active ingredient in this over-the-counter treatment is similar to the one used in professional procedures. Most of the kits require you to attach a one-size-fits-all strip and keep it on your teeth for 10 to 30 minutes.

This method is generally very effective, says Tam, “particularly if you have well-aligned teeth and don’t require customization.” Unfortunately, there are no studies that show how long the effects can last. “You can get results with this approach,” says Tam, but you shouldn’t use the strips more than once every 12 months.