Entering the CF and YOUR Money....

[Redeye]

Has anyone here dealt with Edward Jones and mutual funds?

Thanks!

Edward Jones is a full service broker, which isn't necessarily a bad thing, if you have a decent sized portfolio.  If you're starting off, you're likely going to be better off with a bank's mutual funds.  The MER's are lower, there are no loads, and most of the banks have funds with some very impressive returns.  They're usually more flexible than funds sold through dealers.  I'd shop for a banker just as for anyone else though, because some of them don't know what they're talking about.

Someone mentioned ING - I've had good experiences with them as a provider of an easy to use savings account.  It's considered financially prudent to keep 3 months' salary in a liquid investment, and ING allows this while paying a better return than the next best alternatives, either conventional bank savings accounts or money market mutual funds.  They're simple to deal with.  I'd be careful with their mortgages though, I have seen disasters happen from dealing with them in mortgages, including a funding mistake that nearly cost the borrower thousands of dollars.  Realistically, their rates and terms aren't much better than what a bank provides, and they pertain to priveleges that are rarely used anyhow.

Lastly, Ethical Funds.  I wouldn't bother without doing a lot of research.  The returns on these funds aren't great, and while you might feel a little better about yourself, you're not going to change the world with them.  Go with an investment that is well managed and stands a better chance of good returns.  Their history is lacklustre, as a trip to morningstar.ca might tell you.  The reason you're not seeing direct investment in China (which we discussed at work today) is that the markets there have a lot of problems - lax accounting standards, difficulty with valuations, etc.  Investments anywhere in the world will benefit from China's staggering growth rate, because just about everyone is supplying them - with resources, technology, other capital.  The same goes for India.  A good mutual fund portfolio chosen with competent advice will get you in on it.

Since this stuff is what I do for a living, I figured I should chip in a little.

 

[COBRA-6]

Great thread!

One point on credit cards:

The goal of course is to pay off the balance of the card each month, to avoid the insanely high interest rates. However, the pace of army life can be very hectic, with courses, exercises, deployments etc. It can be easy to forget and not pay your bill on time. To avoid damaging your credit rating, I highly recommend contacting your bank to have them set it up so that the minimum payment for each month is automatically transfered from your checking/savings account to your CC account. I learned this the hard way

Automatic payment is available for most household bills, like auto insurance, phone, power, cable etc. It greatly simplifies your life when you're away from home allot.

Cheers!

Mike

 

[matty101]

Hi, Thanks for all the great advice.  I have a question about debt.  I had a credit card that I failed to pay off and subsequently sent to a collector about a year ago  :-[.  I have since paid it off (1000).  My question is this, is there anything I can do to improve my credit (can't get an other card or loan) or do I have to wait it out?  ???

Thanks for the help

Matt

 

[Gunner]

http://www.professionalreferrals.ca/IMG/_article_PDF/article_693.pdf#search='how%20to%20improve%20my%20credit%20rating'

Here are a few steps that you can take now to improve your credit score:

1- Pay all bills on time.

2- Lower your total credit card debt – It is a good idea to keep the ratio of outstanding balance to total available credit as low as possible. When you are close to the limit, it will look like you are desperate for money and will have a negative impact on your credit score. Therefore, start with the cards or lines of credit where you are closest to your credit limit. Keep in mind that paying off a collection account or a judgment will not remove it from your credit report. It will still stay on your report for seven years.

3- Keep your older credit cards active and always pay your bills on time. Research shows that consumers with longer credit histories have a lower risk of default than those with shorter credit histories.

4- Don’t open a number of new credit cards that you don’t need, just to increase your available credit. This could actually lower your credit score. Also, don’t close unused credit cards as a short-term strategy to raise your score. In fact, owing a fixed amount but having fewer open accounts may lower your score.

5- Every time someone (other than yourself) requests a credit report from a credit bureau, an “inquiry” notation is made in your file. Too many inquiries on your credit report can negatively impact your credit score, as it can signal that you are looking for new credit. Therefore, only apply for new credit when you need it and wait before applying for more. When you are rate shopping for mortgages or loans it is better to do it in a short period of time, so that you are not penalized with multiple inquiries that relate to one credit transaction.

6- If you have a good credit history and have managed your debts responsibly, having a variety of credit products, such as credit cards and installment loans, can raise your score. Still, it is better to apply for credit only if you need it.

7- Carrying balances from month to month (rather than paying your credit card bills in full) will not have any impact on improving your credit score. However, lenders may be more likely to offer credit to people who carry balances because they have a history of paying interest on their accounts.

8- If you are having trouble making ends meet and handling your debts, contact your creditors or see a legitimate credit counselor. The sooner you can get your finances under control the sooner you will be on your way to improving your credit score.

9- Review your credit file regularly to stay informed about the details in your file.

If I can ever give one piece of advice to someone reading this tread, it would be to "take control of your money, don't let it take control of you".

 

[Scarlet]

Just to add to Gunner's latest reply, it's a good idea to get your full credit report. I just did on Friday morning. You can go to http://www.equifax.ca and request a full credit report (including your score) online. You'll need to pay $21.95 for it, but it's worth it. You can also write to Equifax and request a free credit report.

This way you can see if there's anything outstanding on your report that you need to dispute.

 

[GonzoK83]

Firstly, I have been considering resigining into the reserves. Looking at the NCM Reserve payscale pretty much has me convinced. I'm glad this string was posted.

 

[Springroll]

it's a good idea to get your full credit report. I just did on Friday morning. You can go to http://www.equifax.ca and request a full credit report (including your score) online. You'll need to pay $21.95 for it, but it's worth it. You can also write to Equifax and request a free credit report.

This way you can see if there's anything outstanding on your report that you need to dispute.

My husband and I did that before we were to purchase our home and found out that someone elses credit had been tacked on my husband's credit record while we were outside of the country(NATO posting). We contacted Equifax, told them about it and after they checked into it, they found that the person had the same name as my husband, but a different SIN number...so it was promptly removed from his credit records.

Also, make sure if you have a student loan, that you keep on top of it. Two months of non payment from 2001 almost prevented us from getting our mortgage in 2004. As it turned out, the student loan company I went through had not updated my file between 2001 and 2004 and it was still reading that I was still in arrears(60 days late) even though I had already made the late payments and had made payments on time from 2001-2004(thanks goodness for bank statements as my proof!). It took alot of kicking them in the butt to correct it, but it was corrected.

Keep on top of your credit!!!
Best advice ever!

 

[Gunner98]

Springroll - What is your career/uniform status these days - are in the Reg Force?  I tried to PM you but received a message saying your Inbox is full - what's up with that - popular?

 

[ready to go]

I will apologize now for what I am about to say. Sorry. I just don't understand what credit has to do with serving your country. I think it's retarded, personally. I don't have any credit cards or mortgages, but I do have a few debts from a few years ago that now will restrict me from serving my country in time of war. Money really means little to me. Honour, duty, integrity, courage and sacrifice mean everything. I was born to be a soldier and they tell me I can't be because I didn't 'keep my mind on my money and my money on my mind'. Yes I am mad at this and I know there is nothing I can do and it is a big waste of time to even complain. But I speak up when I think things are wrong and I think this is wrong. I should be judged according to my person, my character and my values...not my credit. I want to serve my country. I want to fight on the frontlines with the rest of the brave men and women who are already over there. I've been training my whole life for this. And now I learn that instead of focusing on transforming into a soldier I 'should have' been counting my pennies...
Regardless of my ranting, I am going to kick this stumbling block out of my way and keep going. As if the thing I care least about is going to stop me. :threat:

 

[Springroll]

Well, my opinion is that if you are having money problems, who says you won't go and sell some TS information for a bit of coin....it's been done before.

Gunner98, all my testing is done, just waiting for the call now 

 

[aesop081]

I will apologize now for what I am about to say. Sorry. I just don't understand what credit has to do with serving your country. I think it's retarded, personally. I don't have any credit cards or mortgages, but I do have a few debts from a few years ago that now will restrict me from serving my country in time of war. Money really means little to me. Honour, duty, integrity, courage and sacrifice mean everything. I was born to be a soldier and they tell me I can't be because I didn't 'keep my mind on my money and my money on my mind'. Yes I am mad at this and I know there is nothing I can do and it is a big waste of time to even complain. But I speak up when I think things are wrong and I think this is wrong. I should be judged according to my person, my character and my values...not my credit. I want to serve my country. I want to fight on the frontlines with the rest of the brave men and women who are already over there. I've been training my whole life for this. And now I learn that instead of focusing on transforming into a soldier I 'should have' been counting my pennies...
Regardless of my ranting, I am going to kick this stumbling block out of my way and keep going. As if the thing I care least about is going to stop me. :threat:

:crybaby:

I'm willing to bet that the CFAT was unfair, the PT test unrealistic and the medical pointless ?

Your credit reflects on alot of things.  Credit problems say alot about how you handle resposabilities.  They say alot about your management skills. As Springroll alluded to , it also goes towards your reliability as well.  The military doesnt want to hire potential financial burdens as well, we have enough to deal with in the units as it is.  You see it as a money issue but for the military its a "character" issue.

"i was born to be a soldier"

If i had a dime for every time i have heard that  :  It makes you no more special that the next guy who didnt know about the CF until yesterday.  It doesnt exempt you from the standards we ALL have to measure up to.

Suck it up, sort your finances out........or McDonalds is always looking

 

[ready to go]

It depends on the person I guess. I don't live for money, never have, never will. I believe it corrupts a person's soul. Judging a person on physical fitness and stamina is a good judge of character: it takes discipline and perseverence to sustain a healthy, active lifestyle, especially in this day in age when everything is a 'click' away. I take 2-3 trips on my bike with a hiking bag on my back to get groceries, rain or shine, for example, as opposed to drive. Work, to me, means sweat and blood, not offices and computers. Payday is cash in hand. I guess you could say I am 'old-school'.
Judging a person on their medical and mental condition is also a very valid factor in determining character. I wouldn't want a guy beside who is half deaf in his left ear and can't read just as much as a guy who would sell me out for any amount of $. Try and tell me people don't 'sell out'. Try and tell me people don't 'buy in'. I have been working like a dog at an oil refinery off and on for 3 years and let me tell you; money talks a hell of a lot louder than a person's 'character'. I had 2 co-workers be basically 'bought out' by the employer when they got seriously injured right beside me...all to avoid a WCB claim. They went home and had to suffer with their injuries alone so that the companys WCB premiums wouldn't go up and the 'safety record' would stay clean.
The point of this all is simple: money has nothing to do with character. About 3 weeks ago there was an emergency plant evacuation. My partner was struggling removing his chemical suit and was left behind by the crowd. I, alone, went back and helped him rip it off because I do not leave my men behind. I will put my life on the line for my comrades. How does my credit report prove otherwise? How does my credit report prove that I am a man of my word? I never made any promise or commitment regarding money. I told a friend I would help him start a construction business. I moved across the country and lived with 5 people in a 2 bedroom apartment for 8 months, working 10-14 hours a day to get his business off the ground. Never once did I turn my back on him.  He offered me 50% of the company and I told him I was fine with $15/hr because I wasn't there to start a business, I wasn't there to get rich: I was there to help a friend. I was offered a job with Citigroup in Calgary that would have made me a millionaire in less than 2 years. I chose to go back home to mom and help her build a house for free. My pay was a house to live in, a roof over my head. Right now I have no kitchen, but in 3 weeks my mom will have a brand new, fully modernized kitchen with a nice stovetop in an island, dishwasher, double sink, in-floor heating, everything. As for the McDonalds comment...I'd rather burn it to the ground than work in it. I cook my own food and work hard for the money to buy it. Thats what money is for: not to judge character.

 

[ready to go]

I am already working on the problem, by the way. I was just venting some frustration. I will be in the August BMQ come hell or high water.

Oh and just for the sake of saying so, I wrote and managed the program that handled my friend's finances, invoicing, employees, taxes and assets. I was also his 'go-to guy', right-hand man because I was reliable, trustworthy, dedicated and knew how to take control, make things happen and get the job done.

 

[ROTP Applicant]

The actions that you've mentioned are certainly admirable and it does seem that you have a "good" character. Nonetheless, you must understand that the CF has universal standards that have to be met by all applicants in order for them to be enrolled into the Forces. The standards are fairly rigid, and if you do not meet any of them (i.e. bad credit in your case) then you're out of luck. If you're serious about getting into the CF, then I guess the only way for you to achieve you goal is to deal with the credit problem and enrol as soon as you can. Until then, do not expect the CF to tailor the recruiting standards to every applicant. Good luck.

 

[aesop081]

It depends on the person I guess. I don't live for money, never have, never will. I believe it corrupts a person's soul. Judging a person on physical fitness and stamina is a good judge of character: it takes discipline and perseverence to sustain a healthy, active lifestyle, especially in this day in age when everything is a 'click' away. I take 2-3 trips on my bike with a hiking bag on my back to get groceries, rain or shine, for example, as opposed to drive. Work, to me, means sweat and blood, not offices and computers. Payday is cash in hand. I guess you could say I am 'old-school'.
Judging a person on their medical and mental condition is also a very valid factor in determining character. I wouldn't want a guy beside who is half deaf in his left ear and can't read just as much as a guy who would sell me out for any amount of $. Try and tell me people don't 'sell out'. Try and tell me people don't 'buy in'. I have been working like a dog at an oil refinery off and on for 3 years and let me tell you; money talks a hell of a lot louder than a person's 'character'. I had 2 co-workers be basically 'bought out' by the employer when they got seriously injured right beside me...all to avoid a WCB claim. They went home and had to suffer with their injuries alone so that the companys WCB premiums wouldn't go up and the 'safety record' would stay clean.
The point of this all is simple: money has nothing to do with character. About 3 weeks ago there was an emergency plant evacuation. My partner was struggling removing his chemical suit and was left behind by the crowd. I, alone, went back and helped him rip it off because I do not leave my men behind. I will put my life on the line for my comrades. How does my credit report prove otherwise? How does my credit report prove that I am a man of my word? I never made any promise or commitment regarding money. I told a friend I would help him start a construction business. I moved across the country and lived with 5 people in a 2 bedroom apartment for 8 months, working 10-14 hours a day to get his business off the ground. Never once did I turn my back on him.  He offered me 50% of the company and I told him I was fine with $15/hr because I wasn't there to start a business, I wasn't there to get rich: I was there to help a friend. I was offered a job with Citigroup in Calgary that would have made me a millionaire in less than 2 years. I chose to go back home to mom and help her build a house for free. My pay was a house to live in, a roof over my head. Right now I have no kitchen, but in 3 weeks my mom will have a brand new, fully modernized kitchen with a nice stovetop in an island, dishwasher, double sink, in-floor heating, everything. As for the McDonalds comment...I'd rather burn it to the ground than work in it. I cook my own food and work hard for the money to buy it. Thats what money is for: not to judge character.

I see that you are still missing my point and focussing on the money itself.  I told you that how you manage money and credit is a reflection of who you are.  I'm not saying that it everything about who you are but its an indicator.  If you cannot stay out of financial/credit troubles, how can you be trusted to manage the CF's affairs ?  If you buy stuff on credit and dont pay the bills, what does that say about your sense of responsability ?  As well, do you honestly think that the CF wants to hire someone who has credit probelms ? these individuals turn into admin burdens for the units, miss work days to deal with those issues and generaly dont have their mind on their work.  Note that i know this by experience...i have had to deal with soldiers like that.  it happens when guys are in the forces, no need to recruit them with problems.

You are one of those who come on this site, bitching that they were turned down as if it was their god given right to be in the CF.  I have news for you, you have no RIGHT to be in the military. Your little sob story, although entertaining has nothing to do with the fact that the CF took issue with your reliability and character. Money is not a judge of character, what you do with it is.

Now as far as this thread goes, i know your type and nothing short of a full page of sympathy and total agreement with you will make you happy.  Rest assured that i will not be the one to hold you by the hand and say "it's ok....have a cookie".  Your high morals asside, you have said nothing here that warrants and ounce of my consideration.  I told you, you are nothing special, I have joined when i was 17, decided to join when i was 5, military family, never asked what the pay was and still dont.

McDonalds no good ?

Maybe a greeter at Wal-mart would be better then.....

 

[ready to go]

Now, Springroll or anybody who might know, seeing as you have a little background information, what do I have to do to get rid of this skeleton in my closet? Will working really hard this next month and giving all the income to the creditor make any difference on my actual rating? I can work and get the money, but if the debt is cleared in one month's time will it effectively matter to CF? That is my sole and primary concern. The amount is not that large, $2400. It's the fact that I completely abolished it for 4 years from my concern that got it an R9 rating. In essence I used it as a deterrent to prevent myself from getting credit and forcing myself to rely on cash and debit transactions. But thats beside the point, it has now come back to haunt me as everybody warned me it would >.
Claiming bankrupcy would be an option that I am open to explore simply to abolish it all together, unless it conflicts with CF policy. Does it? My goal is to be able to take my tests on the 31st and have everything be cleared up for smooth sailing so I can get into the August BMQ. As long as it's legal, I will do whatever it takes to accomplish this goal.

 

[Springroll]

The best advice is if you owe any money to anyone, then call them up and make arrangements for payment, and get it in writing...and pay it all. It will still read an R9, but it will also read that you did pay it off in full...which does help. If it has been written off by the company, then there is not much you can do about that. I would strongly suggest you not go for bankrupty for an amount as small as $2400. It just isn't worth it. Make some reasonable payment arrangements with the company and go from there.

Don't bother making excuses for allowing the debt to get that far. The simple fact of the matter is that you didn't pay it, knew you owed it and chose to ignore it. Debts are like Karma and it will always get you in the butt in the end.

I am not a financial advisor, and everything I just wrote is of my own opinion. What you chose to do is completely up to you.

As for getting on August BMQ, there are a few of us who are done what we need to do and are still waiting for a call....so don't bank on any particular BMQ date. They tell you in your recruiting package not to quit your job and such since this whole process can take quite a while.

 

[TMM]

The only way to improve your credit score is to use your credit wisely. Even after paying off your debt, it will take minimum 6 months to a year to get a decent credit rating again. The only way to improve that rating is to keep a credit card, buy something with it monthly and pay it off as soon as the statement comes in.

You cannot expect to ignore a debt for 4 years and have it all better after a month. This will be with you a long time.

You seem to view a monetary debt as no big deal and as being about the money. To an employer it says that you neglected a contract/legal obligation, which is not something we want in employees.

 

[acclenticularis]

There are loads of pages about credit troubles here.  Do a search and you will find much advice.  Probably the best advice though, would be to go to the recruiting centre and have them tell you what you must do re. your credit issue to get in.  When I was a civvy, I was an accountant and some of my clients were bankruptcy cases.  Most often, it was completely unnecessary.  They looked at it as a 'fresh start' or a 'clean slate'.  Unfortunately, these days, you can go bankrupt one day and not too long after start building up credit again.  There are many companies out there that feast on those recently bankrupt.  My advice would be to go to the recruiting office, take the direction from them, and avoid bankruptcy.  It will show that you are responsible for your actions and have a plan (i.e. set up a payment schedule now with the creditors and then notify the recruiting centre).  Good luck.

 

[acclenticularis]

Oh, and about the millionaire within a couple of years bit with Citigroup.  Based on your post, you don't care about money, but, I thought you would like to know that whoever told you that is full of BS.  Dialing for dollars, especially without credentials, does not pan out that way.  Someone sounds desperate for help.