Easy points for grab……

Optimum points:

Register for Shoppers drug mart Tell a friend program. Once you register you can forward the confirmation to your friends and they can register too. When you spend $ 20 or more on Dec 6th or Dec 7th, you will get 5000 points and you will get additional 5000 points for each friend you referred and if they spend $20 or more on those days. You can earn up to 55,000 points. What a great way to way earn points.

Please note some purchases are not eligible purchases (gift cards, phone cards, stamps and lottery)

If you think you can’t find friends who would register and shop on those days. Join one of the groups in forums. You will be able to earn lot of points. I have list some of the groups here
Smart Canucks
Red Flag Deals

(40,000 optimum points = $75)

How to get best return from Petro points

I am an avid collector of points. Few days ago, I got an e-mail from Petro points that all the gift cards purchase will get 5x points (i.e. 5 times the regular points) until Jan 5th 2009. It is a good opportunity since I was already planning to do some shopping as well as gift card purchases for Christmas.

I purchased cards for $100 and received 5,000 Petro points. I also earned 100 Aero plan points from the credit card provider since I used the credit card to buy the gift cards. My return on this purchase is going to be whopping 9.5 %!!!!. I value my Aero plan points at .02/point and Petro points at 0.001458/point.

Lets analyze the strategies now.

If I use the points to buy Petro Canada gift card:
Once I have 45,000 Petro points, I can buy $25 gift card. So 5,000 points will be worth $2.78 and will provide a rate of return of 4.78 % (2.78 from Petro points + 2 from Aero plan).

If I use the points to buy HBC/Chapters/ Boston Pizza gift card from Petro Canada:
Once I have 40,000 Petro points, I can buy $25. So 5,000 points will be worth $3.125 and rate of return will be 5.125 % (3.125 from Petro points + 2 from Aero plan). Please note there are several other $25 gift cards available for 40,000 points. I am using HBC/ Chapters or Boston Pizza as example because those cards are useful to me. But there are several other gift cards from Petro Canada.

If I use the points to transfer to Sears and use for Sear Club points (Sears points):
Once I have 1,000 Sears points, I can redeem for $15 Sears certificate. So 5,000 points will be worth 3.75 and rate of return will be 5.75 % (3.75 from Petro points + 2 from Aero plan). But I collect Sears points from Sears card as well and I am going to redeem 12,000 Sears points for $360 Sears certificate. The rate of return will be 9.5% (7.5 from Petro points + 2 from Aero plan).

In order to get 7.5 % you need to have 12,000 points and it seems like lot of points . You may think that you need to spend $12,000 at Sears or $24,000 at Petro Canada. No… No….

You can earn them by shopping on double points days at Sears.
You can use Sears card at several partner locations.
You can use Sears Master card to earn Sears points.
You can convert Petro points. Petro Canada offers frequent bonus points. You can also regsiter your CAA account with Petro points and earn 20% more points in any purchase.

I am planning to redeem it every few years when I reach 12,000 points. Sear points expire in 36 months and it will be notified in your statement. But If you have points that are closer to expiration, you can transfer it to Petro Points and transfer it back and it will be counted as new points.

There are two disadvantages. One disadvantage is that you cannot use partial certificate. If I want to buy some thing for $60 and I have two $50 certificates, you have to use one certificate and charge the balance to Sears card or Sears Master card. The second one is that the certificate is only valid for one year and it cannot be returned or exchanged.

Tax-Free Savings Account - New Canadian savings plan

I am thinking of opening a TFSA plan for my husband and my self. The new savings product is coming to market on January 1st 2009. This will allow Canadian residents over 18 with valid SIN number to invest $5000 in 2009. It will grow tax free!!!! For example if I invest $5000 on January 2nd 2009 on a 3% one year GIC. I will have $5150 on Jan 2nd 2010. The interest earned ($150) is not taxable. It seems like not a lot of savings. But after few years, it will be big tax saving.

No contribution can be made until January 1st 2009, but I can open the account now and contribute in January. So I can beat the rush in January. Some financial institutions have ways where you can contribute now and they will move the money to TFSA plan January 1st 2009. They give some incentive, so I don't have pay tax until January 1st 2008.(Example: ING direct)

Points to remember:
Contribution limit will increase each year based on inflation.
If an amount is withdrawn, the contribution room will be added to the following year.
CRA Notice of Assessment will let me know the contribution limit available each year.
I can only invest in qualified investments. Most of the RRSP eligible investments will be eligible.


Advantages
I can withdraw the money without any tax implication.
There is no maximum age limit similar to RRSP.
There is no tax on earnings and income in the plan.

Disadvantages
Contributions are not deductible for tax purposes.

I can invest the money in GICs, stocks or bonds. I am going choose a GIC for the 1st year as I don't want to take any risk now. I have checked couple companies and they are already opening accounts. Some instituions providing TFSA are Royal Bank, CIBC, ING direct, Scotia Bank, TD Canada Tryst, HSBC and Bank of Montreal.
I have not decided institution yet but I have decided to open one for my husband and my self in December. So we will be ready to contribute in January.