China Is Not the Sole Economy Engine and India Bright Spot

China Should Not Be The Sole Global Economy Engine

First Published Date: August 3, 2016

In a recent roundtable talk with six global finance leaders, Chinese Premier mentioned that China should not be the only growth engine to carry the global economy. China is still a developing country and should not be responsible for the major world responsibilities.

International Monetary Fund (IMF) recently trimmed global economic growth to 3.1 percent for 2016 and 3.4 percent for 2017 and China’s GDP growth for 2016 to 6.6 percent. All these numbers were reduced by 0.1 percent to reflect recent global conditions.

India Is A Bright Spot

On the other hand, IMF reports that India is a bright spot, as it has the fastest growth rate at 7.5 percent in the global economy. This growth pace should be steady for at least the next three years.

A stable and peaceful political environment is an advantage India enjoys when compared to other countries such as Brazil, China, Russia, and Turkey. Also, foreign investments in India are higher than any other country’s, including China.

Global Economy Consuming Less Energy

The U.S. Department of Energy reports that the consumption of energy such as coal, oil, gas, and even renewable energy is gradually decreasing. This is a good example of how the world is getting better at handling climate change.

Also, carbon emission is decreasing as global economies switch towards renewable energy at a faster pace.

Urgent Call for Global Economies

IMF recently issued an urgent call to implement more growth-boosting policies to put global economies on the right track. IMF suggested the world’s 20 largest economies should maintain relaxed money policies and stay ready to implement contingency plans should things turn worse.

However, the U.S. Treasury believes such a crisis response is not necessary because conditions seem to be improving.

What Are Some of the Best Cash-Back Credit Cards?

Top Cash-Back Credit Cards

First Published Date: August 7, 2016

ou are familiar with A Dawn Journal, you already know my take on cash-back credit cards. I prefer travel rewards credit cards over cash-back cards, as travel cards provide the maximum returns for your dollars. However, for ease and simplicity some of you may want to go with cash-back rewards credit cards.

Today, I will go through briefly some cash-back rewards credit cards that you can consider, so you can pick the one that suits your needs.

MBNA Rewards World Elite MasterCard – Although marketed as a travel rewards credit card, this card provides 2 percent cash back across the board with no strings, no limits, no caps, no tiers, no problems. Annual fee = $89.

Scotia Momentum Visa Infinite – With 4 percent cash back on groceries and gas, 2 percent on recurring bills, and 1 percent on everything else, a perfect card for those who want maximum return on selected categories. Annual fee = $99.

BMO World Elite Cash Back MasterCard – A flat 1.75 percent cash back across the board without any limits. Provides the best insurance benefits among all cash back cards.

Tangerine Money-Back Credit Card – Options to choose up to 3 categories where you can earn 2 percent unlimited cash back. Annual fee = free.

The SimplyCash Card from American Express – A flat 1.25 percent cash back on everything without limits. Annual fee = free.

In the future, I will review some of these cards on A Dawn Journal and on my YouTube channel. There are many other cash-back cards available on the market. However, I believe these I mentioned above offer most value for your dollars spent. Do your thorough research before picking any cards and stay with the one that most suits your needs.

How To Buy A Castle

Buying A Castle

First Published Date: August 13, 2016

We all heard of this – if you are a celebrity or a rich person and money is no matter to you, you probably have to have an island or a castle to vacation a few days every year. Castles may be the epitome of luxury, but the matter of the truth is, you don’t need to be rich beyond belief to actually buy a castle.

Sure, the more money you have in the bank the wider the choice. If you are a millionaire then that makes things a lot more straightforward. However, it is still possible to grab a castle for as little as $50,000 in some countries in Europe. And also, there are castles that could cost range from 1 million dollars to 50 million dollars. It all depends on what type of castle you would like to buy and how fat your wallet is.

Most castles that are in demand in the international real estate market are located throughout Europe. Some of the countries where the castle concentration is high are:

– Scotland
– France
– Italy
– Germany
– Czech Republic
Some of the countries listed below may offer castles at bargains:
– Croatia
– Bulgaria
– Hungary
– Poland
– Romania

There are many other things to take into account when buying a castle. If you buy at the bottom price, you may need to make arrangements for necessities such as water supply, electricity, and other accommodation essentials. If you pay more, you should expect something with better facilities and readiness for human habitation.

There are numerous global real estate agents that are specialized in buying and selling castles. Keep in mind the phrase caveat emptor – buyer beware.  Always make sure what type of castle you want, how large it should be, what you intend to do with it, and what your budget is before you contact a real estate agency. And never make any decisions before seeing a few castles at first.

NB – If you would like to find global real estate agents that deal with buying castles, search on Google for “buy castle”, “buying castle”, “buy cheap castles”, etc.

Mutual Fund Fees Can Cost As Much As A Small House

Avoid Mutual Fund Fees

First Published Date: August 17, 2016

It is an open secret that mutual fund fees can cost you quite a fortune in one lifetime, especially in Canada where fees are even higher than other industrialized countries. Given the fact that there are other low-cost options available like ETFs, investors often forget or ignore what they are paying in the long run.

Toronto-based digital wealth management firm Nest Wealth released some cold, hard figures to put the fees you will be paying holding mutual funds into perspective. For example, if you take a 25 year-old investor starting with a $10,000 investment and adding $5,800 for the next 39 years, at a rate of 6.5 percent return and 2.35 percent mutual fund fees, the investor would have a balance of $229,000, but the fees paid would be $323,654.50.

With those kinds of fees, it is possible to buy a small house in many Canadian cities. It always pays to pay attention to what you are paying for fees and what you can do about it. A study released by Environics Analytics found out that the average Canadian household’s liquid assets amount to $229,000. If you are paying annual 2.35% fees on investments, it will definitely take out a good chunk out of your retirement, considering many ETFs fees are below 0.50 percent.

Nest Wealth offers some neat calculators and portfolio-building tools on its website. You will be able to visualize how different fees or mutual fund MERs affect your investments in dollar terms and what kind of customized portfolios are suitable for you based on your scenarios.

Regardless, you are building your portfolios online or face to face with a qualified financial professional, always do your own research and make best-educated decisions that suit your needs and lifestyle.

Price Protection Not Covered by Travel Insurance

My Grand Bahia Principe Runaway Bay Jamaica Trip and Do You Need Price Protection Guarantee?

First Published Date: August 21, 2016

Today, I am presenting a video of my recent Grand Bahia Principe Runaway Bay trip to Jamaica. I will not talk about the details of my trip, because you will have a good idea of the full trip after watching the video. However, I will talk about a price protection guarantee customers can buy in all-inclusive vacation packages – which might come in handy if vacation prices drop.

All-inclusive vacation packages are popular among North American vacationers going to Caribbean countries. Flight, hotel, unlimited food, drink – basically everything is included in this type of package. Travellers who are looking to relax without worrying about anything else usually choose this type of all-inclusive package.

Price protection guarantee is a separate add-on that you can purchase for all-inclusive vacations. It can run from $50 to $100 or even more. Price drop protection is actually not covered by premium credit card insurances that cover all sorts of travel insurances such trip cancellation, trip interruption, medical emergency, flight delay, and so on.

When I bought my vacation package in November from a 3rd party travel agent, the original vacation provider was offering a price protection guarantee as a promotion free of charge, so I did not mind accepting it – just in case. At the same time, I setup a price drop alert on the travel website that would alert me when the price drops below what I paid previously.

In April, I received an email alert stating my vacation price has dropped roughly $200. I contacted the claim call centre to find out the procedure. I was told that I could claim only once, so if the price even drops further I won’t be able to claim if I decide to claim it right then. My options were to claim at that time or wait for a further drop to claim later, so I decided to claim right away.

The process was simple. You just need to give the agent all your related info and mention you would like to claim. I received the difference on what I paid versus what it had dropped to within three business days in my bank account.

All-inclusive vacation packages tend to drop significantly before two months or just before the departure date, as vacation providers try to empty their unsold inventories. So it may make sense to have this feature added if you would like to minimize your risks. However, you need to decide on whether you would like to pay extra to buy this protection. There is also the possibility that the price won’t drop at all. Based on your risk tolerance and lifestyle, make an educated decision before paying for anything extra and always do your research