Weekend Reading – MBNA Smart Cash Credit Card changes and great blogs
In personal finance news this week or credit cards related to it…I was disappointed week to learn that MBNA Canada changed the rewards criteria for their MasterCard Smart Cash credit card. Although the primary feature remains, up to 5% cash back on all eligible gas and grocery purchases for the first 6 months; you now get 2% cash back (used to be 3% cash back) on eligible gas and grocery purchases thereafter. You continue to get 1% cash back on all other eligible purchases; pretty much anything you buy. The reduction on the gas and groceries is a real bummer, but I still think this is one of the best cash back credit cards around. We’ve received $450 cash back over the last year using this card and we’re glad we switched. This also means we put a ton of our transactions on credit cards 
If you want to learn more about this card, you can read more here.
In economic news this week…gold prices bounced off a seven-week low amid speculation more economic stimulus may be coming for the Eurozone. Gold had rallied to an 11-month peak close to $1,800 per ounce in early October but has since tapered off to around $1,720. With interest rates set to remain low to the ground for the foreseeable future (I read until early 2014 perhaps?), many experts believe gold might perform well in the short term. Gold as a non-traditional investment to stocks and bonds can have a home in a portfolio to boost returns, as long as these investments are in sync with your investment objectives as part of a well-defined financial plan. What are your thoughts on gold?
Headlining this Weekend Reading list, The Blunt Bean Counter said you should stress-test your financial situation in the event of a catastrophe. He said this blogpost should be relevant to many people, this advice is “not intended for older readers, but to anyone married or in a common law relationship, no matter their age. A 40 year old can get hit by a car anytime, just as much as an elderly person can pass away due to old age.”
Enjoy the rest of the articles!
Million Dollar Journey asked are you ready to be a landlord?
Dividend Monk wrote about looking for consistent growth with dividend stocks.
Freedom Thirty Five Blog wrote about marginal utility.
Andrew Hallam continued his fine work in Canadian Business this week, writing about Hedge Funds: Luxury Price for Lousy Investments. This comment was great: “Of course, winning hedge funds do exist, but finding them ahead of time isn’t easy.”
Canadian Couch Potato offered some advice why RESPs should be kept simple.
Retire Happy Blog said get irritated about debt. I do, all the time Jim….
Beating The Index profiled Argent Energy Trust.
Saving Mentor spends $108 per month on high speed internet, TV, 2 cell phones, home long distance and movies. That’s pretty darn good.
Finance Fox was wondered what your first big purchase was.
The Loonie Bin shared a personal story of perseverance.
Michael James on Money wasn’t impressed with the appeal process established by our provincial Municipal Property Assessment Corporation (MPAC). On the other hand, I don’t want to appeal because my property taxes are decent…for now.
Boomer & Echo talked said many appliances look good but don’t last.
Big Cajun Man said buck the fucket list. Yes, we all know what he meant, just rearrange the words!
Dividend Ninja wrote about 3 easy steps to saving enough for retirement.
Avrex Money shared the entire S&P TSX Composite index by dividend rates and yield. An excellent resource!
Modest Money wondered why talking about money is hard.
Sustainable Personal Finance wonders if you accept help.
The Passive Income Earner reported his dividend income for October 2012.
TD Waterhouse announced a new web-based, streaming trading platform this week for investors. The new web-based platform, based on current TD Ameritrade trading software, is designed for investors who trade U.S. stocks and execute advanced options strategies. You can learn more about the platforms here.
The Financial Blogger wrote about grabbing life by the balls.
Young & Thrifty said indexing works but don’t take my word for it.
Tom Bradley said investors should be very skeptical of ‘sure things’.
Your Wealth Effect said the latte factor doesn’t work for him.
Thanks for putting My Own Advisor in Carnivals:
Thanks for reading and sharing this article.
Has anyone had a problem with upgrading their mbna smart cash to the world card? I was able to do it but when you speak to their operators they don’t really seem to want to do it “happily”. The agent I spoke to said they were losing money on the program so they had to reduce the rewards. I think they are counting on people being lazy and just not taking the time to switch cards or do research on better cards.
They told a friend of mine they had to review if she was qualified and would get back to her by mail? She pays her balance every month and has never had an issue paying? That was weird….
Nobody appears to have commented on the fact that the 1% is now limited to the first $1,250 and then it is Z E R O. Major drawback. . . enough that I will now cancel.
Does the card require you to use certain grocery stores or can you get the cashback at places like Chinatown fruit markets?
Hey CK,
Here is an older list of qualifying retailers for the cash back. Independent Chinatown fruit markets won’t qualify, sorry.
GROCERY
A & P
Asian Food Center
Askew’s Foods
Atlantic Wholesalers
Bidgoods
Brunos Fine FoodsBuy
Low Foods
Canada Safeway
Choices Market
Colemans Food Centre
CO-OPCooper’s Foods
Country Grocer
Dominion
Extra Foods
Fairway Market
Farm Boy
Food Basics
Foodland
Fortinos
Grocery Gateway
Hannam Supermarket
Highland Farms
IGA
Kin’s Farm Market
Les Aliments M&M
Loblaws
Loebs
Longo’s
M & M Meat Shops
Maxi
Metro
Michael – Angelo’s
Market
Moncion Grocers
NeedsNester’s Market
No-Frills
Overwaitea Food
Pete’s Frootique
Planet Organic
Powell’s Supermarket
Presidents Choice
Price Chopper
Price Smart
Produce Depot
Provigo
Quality Foods
Quality Market
Rabba
Real Canadian Super Stores
Save EasySave On Foods
Shop Easy Foods
Shop ‘N Save
Sobeys
Starsky Foods
Stongs Markets
Super CSuper Value
Supermarche – Metro
Superstore
T & T Supermarket
Thrifty Foods
Urban Fare
Valu Mart
Village Food Markets
Weston Produce
Your Independent Grocers
Zehrs
Gas stations 7 – Eleven
Amco
Canadian Tire Gas Bars
Cango
Centex
Chevron
CO-OP Gas Bars
Couche Tard
Crevier
Drummond’s Gas
Esso
Fas Gas
Flying J
Fortino’s Gas Bars
Gale S Gas Bar
Gas Bar
Gasrite
Husky
Irving Oil
Loblaw Gas Bars
Macewen
Mac’s Gas Bar
Mohawk
Mr. Gas
N. Atlantic Pet.
No Frills Gas Bar
Olco
Petrocan
Pioneer
Save On Foods Gas Bars
Scholten’s
Shell
Short Stop Gas Bars
Sobey’s Fast Fuel
Sunoco
Sunys
Super Save Gas
Superstore Gas Bar
Ultramar
Western Petroleum
Wilson Gas Stop
Yig Gas Bar
Zehrs Gas Bars
@TM @ My University Money
You’ve raised a good point/advantage there!
My Own Advisor recently posted..Why I’m not buying an iPhone
Thanks for including us Mark. Luckily I’m an Aspire Travel guy myself to the changes didn’t affect me. I highly recommend the card simply for all the insurance it automatically covers you for!
TM @ My University Money recently posted..What Other Bloggers Are Saying #27
I have been using the mbna smart cash card for some time now and like it. Easily managed online, have it on automatic pay so no late or missed payments, and the cash rewards come automatically. What more could you ask? I am disappointed that they lowered the 3% to 2% but I don’t recall getting any notice about that. However I will continue to use the card because I can’t find any that are better.
I hear ya AZ. You couldn’t ask for me, other than the 3% back.
I suspect they will formally notify us with a mailed statement at some point. Or, maybe not?
Mark,
Thanks for the mention! Much appreciated.
In regards to the MBNA CC changes, I’m glad that I don’t have any reward CC or an MBNA CC for that matter. I always found the rewards to be a bunch of BS and heavily on their terms. I say thumbs down to rewards, but that’s just me
Eddie recently posted..Are You Wasting Your Money?
Hey man, thanks for your honest commment. Do you not have a credit card? If you do, curious you don’t get rewards or cash in the process. Might as well get something?
No sweat about the mention!
@My Own Advisor
Mid/Large cap oily stocks are overpriced now except CNQ and SU. Pipes have some up with good dividends! Oily juniors: overpriced just now!
Yeah, the pipelines pay nice dividends…if that is what you are referring to. I don’t own Pembina yet but others.
@Michael James You can’t be serious. Do you buy groceries and gas?
Echo recently posted..Weekend Reading: Watered Down Rewards Edition
Hi MOA,
My take on gold. I’m only into black gold which I understand (because I’m for the west) but not the shiny thing. Don’t understand it.
See Danielle Park sober analysis on gold:
http://jugglingdynamite.com/2011/12/09/a-word-to-the-gold-bugs/
I hear ya Jon. I’d like to get some more COP and start a position in XOM eventually. You? I only own gold indirectly via broad market ETFs.
Mark, thank you for the information regarding the MBNA MC changes. Too bad, but what we can do? Our household is about to get our 10th $50 cheque in a week or so, therefore the switch from Scotiabank 1% cashback (no annual fee) Visa has paid off. All the spending on the MC is for things that we need anyway like food, utilities, gas, flights, etc. so it really make sense to get the cash back if it’s there.
Regarding gold and silver, I consider it’s wise to have a small portion of one’s assets in precious metals. Our holdings comprise 10% of our financial (liquid) assets. I bought gold and silver about three years ago, so I am way up on this part of my investments. I am convinced that precious metals have lots of room to go up in price, so I won’t be unloading just yet.
Have a good weekend!
You’re welcome Elemag. Kinda sucks regarding the MBNA changes. They also lowered their limit regarding gas and groceries per month, from $600 to $400. Between my wife and I, we don’t spend $800 total on gas and groceries per month so no big deal about the limit. Kinda sucks about the cash back, but I guess all good things must come to an end
I will continue to keep the card for a while until I see a much better deal.
Regarding gold, I only own a bit indirectly via broad market ETFs. That’s good enough for me. Buying gold and silver a few years ago, would indeed put you “way up”! Well done. I would keep both if you have them already. Over the long-term (20+ years) I’ll suspect you will do well.
Thanks for your comment, good to see you checking in.
Thanks for the mention Mark!
Enjoy your weekend
BeatingTheIndex recently posted..Argent Energy Trust: Eagle Ford Shale Upside Beacons
I find the best credit card rewards come from not buying anything. Call me crazy. Thanks for the mention.
Michael James recently posted..Short Takes: Pitching Leverage to Seniors, Students with Credit Cards, and more
You’re not crazy
Although if you’re going to spend, even a little bit, might as well get something for it – right?
Hi Mark
Thx for highlighting my post on stress testing your financial readiness. A morbid topic, but as you note a very important one. In my job as a CA I have seen multiple cases of spouses having no clue where things are, which only exacerbates the anxiety and stress they have at a very grief sticken time.
Golfers tease in TO this week, beautiful weather thurs and fri and then cold and rainy supposedly on weekend, hopefully better for you.
Yeah, it was a morbid topic but an important one. I got your humour as well…I probably should have commented on that. Yeah, golfers tease indeed although only 10 Deg. C. in Ottawa now. Rain and Sandy on the way
Take care and enjoy your weekend.
No, I actually call it the Fucket (pron Foo-kay) list, it sounds that much more sophisticated. Thanks for the mention, have a great weekend.
Big Cajun Man recently posted..The R-word, Bayonets, Horses and Friday #Shoutouts
Ohhhh, is that how you pronounce it?
Thanks for the mention, Mark. I’m sure all reward credit cards will be constantly changing over the years to be less…rewarding. Have a good weekend!
Steve recently posted..REITs: Own Real Estate Without The Headache
I think you’re right. Take care and thanks for the blog support Steve – always appreciated.
I’m very bullish on gold. Not so much on the GLD or commodity based etfs, but I like gold and silver companies. Goldcorp shares have been doing really well over the last couple months. But then again, these are also some of the riskiest large cap investments I hold. I’ve never thought about stress testing my financial situation before, sounds interesting though. Thanks for the mention. Hope you have enough time to finish your laundry tonight.
Liquid recently posted..More Money Than Brains
Not a big fan of commodity based ETFs, too many “good” and “bad” stocks IMO. I prefer to own gold indirectly via broad market ETFs. Goldcorp has done very well of late…although low yield so you’re really counting on capital appreciation. That goes against my investing philosophy a bit where I feel income/cash flow/dividends and distributions is vitally important for sustained wealth.
I did finish the laundry by the way
Too bad about the Smart Cash card. Actually, there were two other changes to the rewards program. The $600/month earnings cap on groceries and gas was reduced to $400/month. And for Smart Cash Platinum cardholders there’s an earnings cap of $1,250 per month (no cap for Smart Cash World cardholders).
Echo recently posted..Why Today’s Appliances Look Good, But Don’t Last
Yeah, I read that change in cap as well…annoying, although the cash back from 3% to 2% hit home for me since between my wife and I, we don’t spend $800 total let alone $1,200 total on gas and groceries per month. Still a bummer. 2% then 1% for everything else, remains pretty decent and I’ll continue to hold the card for now.
Thanks for the share Mark! I was just looking for an older article of yours to share in my roundup this week right now as I noticed you shared my article. I’m sure I’ll find something great that you wrote
SavingMentor recently posted..$108 – My Cost For High Speed Internet, TV, 2 Cell Phones, Home Phone, Long Distance, And Movies
No sweat! I really liked that article. My wife were talking about cutting our home phone recently, but I think it’s a must for a security system.
You are more than welcome to use any of my previous 300+ blogposts – every week