Consumer Products are a part of personal finance, so occasionally you'll see an article here about something that grabbed my attention - thanx to Renaissance Investments for this one!
Just don't give up your cable connection quite yet. Apple TV, Boxee, Netflix - all three arrived in Canada late last year but with one major disadvantage. We got the watered down Canadian versions instead of the more sophisticated American models.
To be sure, the set top box hardware is the same, it's just what the boxes are allowed to do or, more importantly, not to do. To give the most egregious example, in Canada, Apple TV doesn't even offer TV shows, one of its main draws in the US.
So, is it even worth opting for internet TV?
The answer depends on how much you're prepared to pay to start experimenting with streaming TV while you continue to pay cable bills. Here are some of the pro and cons of internet TV.
Apple TV $119 - While Apple TV won't get you your favourite shows just yet, you can use this palm-sized set top device to watch movies from iTunes, show off your photos on the big screen at family gatherings, and set up a house-wide sound system. With any luck, it won't be too long before an agreement is forged that will allow Canadians, who don't have a US iTunes account, to watch their favourite shows. At that point, you'll be more familiar with streaming TV and can crunch the numbers to decide whether it's worth it to give up cable altogether.
Boxee $229 or free - Boxee is a set top device that finds shows and movies available on the internet and puts them on your TV. The software was originally developed as open source and geek types can set it up without buying the new box, which is manufactured by D-Link. The box's main selling pint is supposed to be ease of use. Alas, according to the reviews, it is far from a no-brainer and, given the price tag and the restricted access in Canada to entertainment providers like Hulu, it's probably not worth your while. Stick with the free software if you're up for it.
Netflix Canada $7.99 per month - You can stream Netflix Canada to both Apple TV and Boxee as well as to Wiis and Xboxes. But there's on big problem. Even though you can watch all the moves and TV shows you want, Netflix Canada's selection has been described as similar to the discount DVD bin at your local drugstore. Netflix has said it wants to improve the selection but needs more customers and revenues to do so, creating a chicken and egg situation. Before you sign up, check out the selection and make sure there's enough available to keep you entertained.
Roku - This set top box is very highly rated but only available in the US with no plans to enter the Canadian market.
Google TV - It's not in Canada yet either but the reviewers have deemed it expensive and over complicated so at least we don't have to feel bad about being left out of this one.
Me, I'll stick to my satellite for awhile yet - with the occasional downloads from CBC (gotta watch my Dragon's Den!)
Monday, March 7, 2011
Sunday, March 6, 2011
Spending Patterns
This last week I spent some time looking at personal financial software again. It really came down to two choices - Quicken or Mint.com As I was searching for reviews of the two, I came across a really interesting article.
First - what I saw as the difference between Quicken and mint.com was that mint was a "cloud" product and Quicken was a desktop product. Then I discovered that Quicken now has a cloud product out there too!
This is where it got interesting. I'm a big fan of data mining - I like to be able to look at large volumes of data and find the nuggets in it. Mint.com provides a really unique opportunity for that - because all of this data is uploaded to one database, it becomes possible to mine it for interesting trends.
No, you and I can't do that - at least not yet. But in one of the reviews I read comparing Quicken to mint.com they let it slip that mint.com had noticed a significant change in people's spending habits - a drop of $300 US/month per user!
This is where cloud computing gets really interesting - if everybody is uploading all their data - whether it be pictures or finances - it makes it relatively easy to track trends. Nobody is interested in what a specific individual does (okay, MOST people aren't) - but to know what a large population of people is doing? This is WAY better than all the crazy membership cardst to track "discounts" - but that are really just set up to track your spending patterns.
So, what made this so interesting to me was this: the data at mint.com shows a drop of $300/month is spending. Are people, in general, becoming less of the consumer animal we've grown accustomed to? Or does this represent a small part of the population. It could be argued that those who are willing to take the time to manage their finances by computer are more likely to be fiscally responsible. How broad-based is this trend?
Personally, I'm torn on whether it's a good thing or not. Long-term, better fiscal responsibility is better for individuals and the country. Short-term, if you spend all your money on consumer stuff it's gonna drive up the profits of companies I might own...
Let's get responsible people!
First - what I saw as the difference between Quicken and mint.com was that mint was a "cloud" product and Quicken was a desktop product. Then I discovered that Quicken now has a cloud product out there too!
This is where it got interesting. I'm a big fan of data mining - I like to be able to look at large volumes of data and find the nuggets in it. Mint.com provides a really unique opportunity for that - because all of this data is uploaded to one database, it becomes possible to mine it for interesting trends.
No, you and I can't do that - at least not yet. But in one of the reviews I read comparing Quicken to mint.com they let it slip that mint.com had noticed a significant change in people's spending habits - a drop of $300 US/month per user!
This is where cloud computing gets really interesting - if everybody is uploading all their data - whether it be pictures or finances - it makes it relatively easy to track trends. Nobody is interested in what a specific individual does (okay, MOST people aren't) - but to know what a large population of people is doing? This is WAY better than all the crazy membership cardst to track "discounts" - but that are really just set up to track your spending patterns.
So, what made this so interesting to me was this: the data at mint.com shows a drop of $300/month is spending. Are people, in general, becoming less of the consumer animal we've grown accustomed to? Or does this represent a small part of the population. It could be argued that those who are willing to take the time to manage their finances by computer are more likely to be fiscally responsible. How broad-based is this trend?
Personally, I'm torn on whether it's a good thing or not. Long-term, better fiscal responsibility is better for individuals and the country. Short-term, if you spend all your money on consumer stuff it's gonna drive up the profits of companies I might own...
Let's get responsible people!
Friday, February 25, 2011
Financial GURUS
We're nearing the end of RRSP season, and as I walk through the hallowed halls of CHAPTERS (one of my favorite stores) the piles of this years Investment Guru advice call out to everyone passing by.
In 20+ years of being licensed and working in the financial industry I've across exactly ONE "financial guru" that hasn't said something really stupid that cost people lots of money - and I suspect that's because he teaches FINANCIAL PLANNING concepts rather than which stock is the best, or which direction the market is going. That one person is DAVE RAMSEY - and if you get the chance, I strongly recommend taking his course (or take it on-line!) It's cheap, and if you follow what he teaches it'll literally be worth MILLIONS to you over your lifetime.
There are others I've found interesting - and some with some very valuable advice. Here, then, are my favorites.
Benjamin Graham: Wrote the two single best investing books ever, SECURITY ANALYSIS and THE INTELLIGENT INVESTOR. Security Analysis has become the "bible" of value investing. But Graham's biggest claim to fame? Warren Buffet is his protege.
Warren Buffet: I don't know what more needs to be said here. His writings found within the Berkshire Hathaway Annual Reports are legendary. I've found some of the best inspiration on investing in those reports.
Thomas Stanley: A demographer, and one who has done some amazing research. He's written two books, both of which are on my recommended reading list. The Millionaire Next Door and The Millionaire Mind.
Terry Ritchie: Not very well known, but an expert on Canada/US tax planning and retirement issues. His three books, The Canadian Snowbird in America, The American in Canada and The Canadian in America are must-reads for those who are thinking of living "across borders" in either country.
Dave Ramsey: Check-out his website, www.daveramsey.com and LEARN!
Now, having listed some of the gurus I've found valuable - it wouldn't be complete without listing some of the ones that I've found of little to no value - though at times definitely entertaining. Eric Tyson (one of my inspirations for this post) has written on a number of these "anti-gurus".
Robert Kiyosaki: Author of Rich Dad, Poor Dad. His original book is a good read, and a good motivator. His education game "CASHFLOW" is EXCELLENT, but you've got to get past the obvious bias towards real estate. As an investment advisor he's terrible. The examples are too numerous to get into here, and there's whole articles written on how bad he is. Eric Tyson's article can be found here. Marketplace did a story on Robert Kiyosaki here.
Darren Weeks: FRAUD! His company, "Fast Track to Cashflow" is advertised as a "Rich Dad, Poor Dad" way of thinking company. He'll "educate" you and help you to become rich ala RD/PD - the truth is he markets tax shelters that will cost you big bucks. CRA has successfully gone after a number of these, and you're best to keep your distance.
Suzy Orman: AGH! She's marketed herself as the saviour of women's finances. Eric Tyson goes into a fair bit of detail here.
In 20+ years of being licensed and working in the financial industry I've across exactly ONE "financial guru" that hasn't said something really stupid that cost people lots of money - and I suspect that's because he teaches FINANCIAL PLANNING concepts rather than which stock is the best, or which direction the market is going. That one person is DAVE RAMSEY - and if you get the chance, I strongly recommend taking his course (or take it on-line!) It's cheap, and if you follow what he teaches it'll literally be worth MILLIONS to you over your lifetime.
There are others I've found interesting - and some with some very valuable advice. Here, then, are my favorites.
Benjamin Graham: Wrote the two single best investing books ever, SECURITY ANALYSIS and THE INTELLIGENT INVESTOR. Security Analysis has become the "bible" of value investing. But Graham's biggest claim to fame? Warren Buffet is his protege.
Warren Buffet: I don't know what more needs to be said here. His writings found within the Berkshire Hathaway Annual Reports are legendary. I've found some of the best inspiration on investing in those reports.
Thomas Stanley: A demographer, and one who has done some amazing research. He's written two books, both of which are on my recommended reading list. The Millionaire Next Door and The Millionaire Mind.
Terry Ritchie: Not very well known, but an expert on Canada/US tax planning and retirement issues. His three books, The Canadian Snowbird in America, The American in Canada and The Canadian in America are must-reads for those who are thinking of living "across borders" in either country.
Dave Ramsey: Check-out his website, www.daveramsey.com and LEARN!
Now, having listed some of the gurus I've found valuable - it wouldn't be complete without listing some of the ones that I've found of little to no value - though at times definitely entertaining. Eric Tyson (one of my inspirations for this post) has written on a number of these "anti-gurus".
Robert Kiyosaki: Author of Rich Dad, Poor Dad. His original book is a good read, and a good motivator. His education game "CASHFLOW" is EXCELLENT, but you've got to get past the obvious bias towards real estate. As an investment advisor he's terrible. The examples are too numerous to get into here, and there's whole articles written on how bad he is. Eric Tyson's article can be found here. Marketplace did a story on Robert Kiyosaki here.
Darren Weeks: FRAUD! His company, "Fast Track to Cashflow" is advertised as a "Rich Dad, Poor Dad" way of thinking company. He'll "educate" you and help you to become rich ala RD/PD - the truth is he markets tax shelters that will cost you big bucks. CRA has successfully gone after a number of these, and you're best to keep your distance.
Suzy Orman: AGH! She's marketed herself as the saviour of women's finances. Eric Tyson goes into a fair bit of detail here.
Monday, February 14, 2011
Killing time with The Dragon's
I don't get much time to just sit around and watch TV, but when I do my favorite show is Dragon's Den. Why? It's a brutally simple way of looking at a business - what's it's cashflow and how am I going to make money!
I missed watching it last week, but fortunately CBC airs the previous weeks episode on it's web site. I sat down and watched it tonight - and what caught my eye? A Board Game called Day Trader.
No, it didn't catch my eye because it has the potential to make gobs of money. It purports to be an education-related game that teaches people about the markets. From what I saw - it doesn't. The Dragon's never touched on it, at least not that was broadcast, but I'm sure a big part of it was that it actually perpetuates the myth of investing.
The idea that "the markets" and investing is no different than a game of chance goes to the heart of why so many people are unable to make money investing. Successful investing is about finding companies that have real earnings and are going to pay those earning to their shareholders.
In the words of Jerry MaGuire's Rod Tidwell... SHOW ME THE MONEY!
The model is simple: A company makes REVENUES - from those revenues it pays it's expenses. After expenses are paid, there's PROFIT - a company can choose to pay some of those profits to it's shareholders (Dividends) or re-invest it back in the company to INCREASE it's profits.
What I want to see is HOW a company makes it's revenues, how it controls it's expenses, and what it's profits are! Then, I want to know if management is going to pay me those profits, or if they think they can make me more money by putting it back in the company. Warren Buffet has NEVER paid a dividend, but has been able to consistently re-invest profits to make me MORE MONEY!
I missed watching it last week, but fortunately CBC airs the previous weeks episode on it's web site. I sat down and watched it tonight - and what caught my eye? A Board Game called Day Trader.
No, it didn't catch my eye because it has the potential to make gobs of money. It purports to be an education-related game that teaches people about the markets. From what I saw - it doesn't. The Dragon's never touched on it, at least not that was broadcast, but I'm sure a big part of it was that it actually perpetuates the myth of investing.
The idea that "the markets" and investing is no different than a game of chance goes to the heart of why so many people are unable to make money investing. Successful investing is about finding companies that have real earnings and are going to pay those earning to their shareholders.
In the words of Jerry MaGuire's Rod Tidwell... SHOW ME THE MONEY!
The model is simple: A company makes REVENUES - from those revenues it pays it's expenses. After expenses are paid, there's PROFIT - a company can choose to pay some of those profits to it's shareholders (Dividends) or re-invest it back in the company to INCREASE it's profits.
What I want to see is HOW a company makes it's revenues, how it controls it's expenses, and what it's profits are! Then, I want to know if management is going to pay me those profits, or if they think they can make me more money by putting it back in the company. Warren Buffet has NEVER paid a dividend, but has been able to consistently re-invest profits to make me MORE MONEY!
Sunday, February 13, 2011
Question...
Okay, waiting for so long to post again is a little slack on my part.
Question of the day: How would you prefer to invest - the same way someone with TEN THOUSAND dollars, or the same way as someone with TEN MILLION dollars?
Question of the day: How would you prefer to invest - the same way someone with TEN THOUSAND dollars, or the same way as someone with TEN MILLION dollars?
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