What Is An Aeroplan Mile REALLY Worth?

What is an Aeroplan mile really worth?

With the news breaking that Aeroplan will be replaced as Air Canada's loyalty program in 2020 - its future has become increasingly uncertain.

We know the program will continue on after 2020, your miles are 100% safe, and there will still be some options for redeeming on industry leading airlines, one of which could still be Air Canada. That is what has been promised.

What we don't know is how the reward choices, flight redemption options, and reward value will change after 2020...

Will it still remain a true airline rewards program?

Will they find a new airline partner?

OR ...

Will it become more of a flexible travel rewards program like what bank travel credit cards tend to offer?

Ultimately, what everyone wants to know is "what are my miles worth today?", "what will they be worth after 2020?", and "is Aeroplan still worth it?".

Here you'll find a concrete answer to the first question, my predictions on the second, and a discussion about the third.

So - what are Aeroplan miles worth today?

Want to get the best value for your Aeroplan miles? Download the PDF version of this analysis.

The Quick Answer: 2.5 Cents

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$166 – My Cost For High Speed Internet, TV, 2 Cell Phones, Home Phone, Long Distance, And Movies

My cost for high speed Internet, TV, 2 cell phones, home phone, long distance, and movies

Canadians pay some of the highest costs in the world for their communications and entertainment needs.

These costs can do serious damage to your long term financial health because they silently drain your bank account every single month. They're even subject to regular rate hikes to maximize profits for your service provider, often outpacing the rate of inflation.

Knowing that, I try to review my service costs regularly and keep them as low as I can while not depriving myself of what I really need. Now that I have a home office, I need top speed and rock solid internet for example. I also need reliable cell phones with lots of minutes and data - whereas I used to be able to get by without that in years past.

Here's a breakdown of my current services for my household of 2 adults and 2 children - all prices include taxes and fees.

$85.04 – High Speed Internet (130mbps Down / 50mbps Up)

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Choosing Between DIY Index Investing and Canada’s Robo Advisors

DIY index investing versus Canada’s robo advisorsAs someone who tries to help people optimize their personal finance decisions, I have been frustrated by the DIY investing hurdle for several years now.

I know that I’m not alone in this frustration, and it appears to be quite a common affliction amongst many in the personal finance blogging community.

See, I know that basic index investing using 2-4 vanilla ETFs is relatively easy (with maaaaaybe 3-10 hours of upfront reading) and super cheap. And I know that I can show others that DIY index investing using 2-4 vanilla ETFs is relatively easy and super cheap…

I even know that most of the time, at the end of my sermon our chat, folks will agree that using ETFs, embracing passive investing, and simply rebalancing their portfolios 1-4 times per year is the way to go.

What I don’t know is how to get people to actually execute DIY index investing!

I’m not sure exactly where I lose people...But somewhere along the road from learning about the statistical excellence and relative ease of building a “couch potato portfolio”—and actually opening up a discount brokerage in order to purchase their first few units of an ETF—way too many of the people I’m trying to help get lost.

They wander off course, start looking at maps of a million other investment paths, half-complete the 1-2 forms that are needed, and eventually, several years later, they realize that they:

  1. Never started investing, or
  2. Are still investing in high-fee mutual funds

Clearly these are very sub-optimal outcomes

Do As I Say – Not As I Do

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The Price You Pay For Mutual Funds

Management Expense Ratio (MER)

If I were to ask you what you’re invested in, many would say they have mutual funds from their banks or investment companies.

If I ask you how much it costs you every year to have these mutual funds, most would say “nothing.”

Step back and think about this.

Are all these companies and their financial advisers working for free to ensure your financial success?

Are all these advisers working for non-profit companies?

Management Expense Ratios

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