Flyboy

unlanded

The sky was white. The ground was white. The air was white. I stared out the window and watched a couple of giant black wheels dangle unfulfilled in the alabaster nothingness before returning to illegal emails on my phone. Moments later I glanced again and saw a shard of water and what looked like…whoa!

The Q-400’s engines revved insanely and the plane lurched skyward, peeling back from the unseen short, fat runway at the Toronto island airport, the one with open water at both ends. Minutes passed as the craft stormed higher, then the captain’s voice: “The conditions for landing have not been met. We’re trying again.”

A half hour later we were low enough that only a few feet separated the newly-deployed wheel from the enshrouded asphalt, when again we careened and aborted. And the captain said we were done. Next stop, Montreal.

So this is written from a cheesy hotel on the airport strip outside Dorval’s Trudeau airport, where it is snowing (of course) with freezing rain moving in. I may have to vultch a condo and move in until Spring comes to this forsaken city in June.

Being in a pissy mood and missing my dog, I’ll be a little briefer than usual. Besides, I want you to read Kristi’s letter and respond (I’d just make her cry). First a few words on the big banks, which were downgraded on Monday by a giant rating agency. Is this the big deal some are making it out to be? Is your money safe in the bank? How about your bank stock, or those ETFs with bank exposure?

In case you missed it, TD, Scotia, CIBC, BeeMo, National and Desjardins had their long-term ratings zapped by Moody’s. The reasons sounded ominous. The move came because of “our ongoing concerns that the Canadian banks’ exposure to the increasingly indebted Canadian consumer and elevated housing prices leaves them more vulnerable to unpredictable downside risks facing the Canadian economy than in the past.”

This jives with the never-ending bleating we hear on this blog about how a housing correction in Canada will topple the towers at King & Bay the way the US crash killed Lehman, Bear Stearns and most other American investment banks. Some people think if prices continue to sink in Victoria, Vancouver, Edmonton or Mississauga (they will) that banks’ mortgage portfolios will be gutted, profits tumble and share prices halve. This is clearly what Moody’s was digging at. And it’s plain wrong.

The market evidence to the contrary has been overwhelming. Bank stocks have gained 5% even while the downgrade was expected, and then took place. The bond market sniffed, then shrugged. In other words, the move was utterly ignored by the financial markets and bank equity or preferred investors lost nary a dime. This is the way it will continue.

The big difference between our bankers and Yankee ones is the feds. Even though there are more than $300 billion in high-risk, high-ratio mortgages floating around bank balance sheets these days, CMHC has provided default insurance on the whole mess. It always amazes me how first-time buyers with skimpy downpayments think the mortgage insurance they’re forced to buy protects them in case they can’t make payments. Of course, it protects the lenders, which means they can give tons of money to people too useless, lazy, juvenile or unfocused to save, and the taxpayers guarantee repayment in the event of default. So mortgage arrears numbers mean didly in Canada.

The real risk is a crash in housing values and a plunge in homeowner equity would scare the bejesus out of consumers who would stop spending, wreaking havoc on the Best Buys of this nation. A general slump there, plus a dive in construction, would hurt bank operations and profits. This is a far more credible scenario, but even that won’t happen.

As this pathetic blog has stated with boring repetition, we are in for a year of melting prices which will reduce the national average by about 15%. That means way more in Vancouver, less in the sexy bits of the GTA, spotty mayhem in 905, big surprises in Saskatoon and Winnipeg, a grinding erosion in both Halifax and the damn city I am currently imprisoned in. The banks know this is coming. They’ve seen mortgage numbers shrivel, and they have a plan.

There are lots of things to worry about. The big banks are not on that list. But Porter Airlines is.

Now, here’s Kristi. I like this letter so much I will not spoil it with a response. Not today, anyway. But since this hot, young nurse has entered our sanctum, go for it.

My name is Kristi and to be quite honest, I had never heard of you before last week and had little interest in the financial world.  I did my best to ignore the episodes of Real time with Bill Maher that my husband would watch and felt my eyes glass over with boredom whenever talks with my husbands colleagues at dinner would turn to politics or finances.  I thought the globe and mail was for my grandpa and found myself zoning out when my dad would go on about “why he hates mutual funds” (you get the picture).  However, I wanted to share a recent experience with you that led me to learning about you and your blog and ultimately that it is likely in my best interest to give a damn about this stuff.

My husband and I recently went on a snowboard trip to banff.  Along the way we made  a stop to visit one of his med school buddies and his wife in Calgary.  She is a physiotherapist and I am a nurse, leading us to usually centre our conversations around the woes of the healthcare system.  During this visit however, over several glasses of wine his wife began to explain to me that she is an avid investor in the stock market.  In fact she invested in her first stock at the age of 16 and over the span of the last 4 years has seen a gain of $250,000 in her investments.  Laughing at my undeniable shock she said, “You don’t just let your money sit in the bank do you?  It can’t possibly keep up with inflation, which means you are actually loosing money”.  I felt my face flush at my ignorance and tried to play it cool.  What the hell was inflation?  And where else would I put my money besides in the bank?  Upon learning this information I took a second look at her and marvelled at the following:  How could this be possible?  She is gorgeous, blonde, funny, stylish, makes a salary similar to my own, AND has 250,000$ sitting in the bank??!  I felt myself choke on my wine.  Myriad feelings passed through me at that moment- Why the hell hadn’t anyone taught me this crap at age 16? Why had I never decided this was important to take notice of?  Immediate waves of envy mixed with admiration and motivation coursed through my veins.  We aren’t so different her and I.  In fact up until this moment I thought we had a lot in common.

Perhaps I too could learn how to invest in the stock market to better my financial future.  My whole life (i’m 27 ) I feel I have never taken a real interest ( save starting a savings account and opening a TFSA upon the advice of some guy at the royal bank) in money or financial interests.  I suppose the truth is, I always felt afraid to ask, as if that might reveal some flaw in me that I didn’t want others to notice.  I so far have managed to sock away 10,000$ of my own money in TSFA’s and also open an RSP with 15,000$ in it.  But unfortunately, I have absolutely no idea what any of these things mean for my future or present financial situation.  I got married a year ago and my husband is a doctor, which has prompted me to face the undeniable fact that I am now an adult and should have the balls to face my ignorance on the topic and gain a little financial confidence.

Do you have any suggestions for a newly wed nurse and doctor??(Keeping in mind that I’m not sure I even know the true definition of a stock…I’ll need to start with the basics)

240 comments ↓

#1 PermaBear on 01.28.13 at 11:31 pm

I have no comment!

#2 KG on 01.28.13 at 11:32 pm

late one today, but as usual thanks !

#3 shanks on 01.28.13 at 11:32 pm

first!

Stop that. — Garth

#4 mark on 01.28.13 at 11:35 pm

Do I claim this?

#5 Don on 01.28.13 at 11:35 pm

First?

#6 Sidera on 01.28.13 at 11:36 pm

Interest rates are going down, not up.

Lower home prices mean less profit for the bank.

The nurse needs to buy some gold. The penny is toast, next is the nickel. Who knew a nickel, nickel is worth more than 5 cents? They don’t teach this is school.

If they did, you’d know rates will not decline. — Garth

#7 Dr. Ralph Cramdown, FRCS(C) on 01.28.13 at 11:36 pm

There’s nothing we can teach you here that’ll have a bigger financial impact on your life than marrying the doctor in the first place.

#8 ExpatCanuck on 01.28.13 at 11:40 pm

You’re never too old to learn, Kristi. Reading this blog is a good start.

#9 Steve on 01.28.13 at 11:41 pm

Tell her the stockmarket is a zero sum game. Tell her to google this if she wants to learn more

#10 Canadian Watchdog on 01.28.13 at 11:41 pm

This jives with the never-ending bleating we hear on this blog about how a housing correction in Canada will topple the towers at King & Bay the way the US crash killed Lehman, Bear Stearns and most other American investment banks. Some people think if prices continue to sink in Victoria, Vancouver, Edmonton or Mississauga (they will) that banks’ mortgage portfolios will be gutted, profits tumble and share prices halve. This is clearly what Moody’s was digging at. And it’s plain wrong.

Now you sound like a housing perma-bull Garth. I know. It's different here. We have good good banks.

Spare it. You'll be wrong. All that's left is for international investors to realize Canada is nothing but a pipedream that was sold as AAA on non-discloser. They can shuffle the debt around all they want, when eventually, someone has to pay it.

It won’t be the shareholders. — Garth

#11 NFN_NLN on 01.28.13 at 11:41 pm

I’m with #7 Dr. Ralph Cramdown.

Start doing kegel exercises now. They may be the only dividends you see in the future. :)

#12 T.O. Bubble Boy on 01.28.13 at 11:42 pm

Kristi is 27, and doesn’t know what a stock is.

Given the small amount to invest, maybe just start with a Couch Potato approach (canadiancouchpotato.com).

Assuming that the doctor hubby has a bigger chunk to invest, you’ll probably need an accountant and an advisor… many doctors are known to have extremely poor finances, since they have no time to pay attention to them.

Or, just focus on budgeting and saving, and read Garth for a year or two until you know the difference between bonds vs. preferreds, and ETFs vs. stocks.

#13 T.O. Bubble Boy on 01.28.13 at 11:43 pm

@ #7: you win — made me chuckle.

#14 NFN_NLN on 01.28.13 at 11:43 pm

And now for something you’ll really enjoy:

m.theglobeandmail.com/globe-investor/personal-finance/financial-road-map/renters-want-a-house-but-if-not-at-least-their-house-inorder/article7920860/?service=mobile

#15 dosouth on 01.28.13 at 11:45 pm

The nurse may want to remember she is probably the socially more ept of this couple. Pre-nup in place and then learn to invest – I believe you had stated a few posts ago Garth that if you don’t have trust in a relationship you have nothing.

Truer words were never spoken but regardless, at 27 she has a lot of living and investing to do.

Another great saying is opinions are like noses, everbody has one. Get good advice, her friend did!

#16 Drill Baby Drill on 01.28.13 at 11:45 pm

Isn’t this why women marry doctors so that they don’t have to worry about money ?

#17 hoser on 01.28.13 at 11:48 pm

The investment you made in your relationship has already financed your future. You were smart enough to snag yourself a doctor, instead of marrying a male nurse. Don’t waste our time. I’m sure you can afford a financial adviser. You will be a stay at home mom soon enough. In case of divorce, you get half and child support.

#18 MagnumMtl on 01.28.13 at 11:49 pm

yo Garth, if your flight is cancelled tomorrow morning you should head downtown and see our awesome new waterworks!

#19 KG on 01.28.13 at 11:50 pm

it’s for the million dollar club !

but surely i am tempted too !

#20 squished18 on 01.28.13 at 11:51 pm

Dear Kristi:

http://www.amazon.ca/Wealthy-Barber-Returns-David-Chilton/dp/0968394744/ref=sr_1_1?s=books&ie=UTF8&qid=1359431296&sr=1-1

#21 Sebee on 01.28.13 at 11:54 pm

My favorite comedy bit about flying. It will cheer you up and perhaps your small detour will not cloud your appreciation of the miracle of flight.

http://m.youtube.com/watch?v=KpUNA2nutbk

#22 Goldie on 01.28.13 at 11:57 pm

Husband and friends talked about finances: ignored.
Other family members’ interest in finaces: ignored.
It took envy of an other “hot” woman to motivate her.

Providing that this mildly suspicious email is true, she’s ripe to be taken advantage of.

True? I can’t write like that… — Garth

#23 jim on 01.28.13 at 11:57 pm

Hmm, I think she should take charge of the finances. Doctors are notoriously arrogant. Some are smart, but many have egos the size of a blimp.

I don’t think 27 is too late to learn. In fact, I have the same complaint that my parents (and the education system) never really introduced me to financial literacy when I was younger. Better now than never.

#24 hobbygirl on 01.28.13 at 11:59 pm

Been a while since I posted but I am prompted to chime in since I’m in the same boat as her. I have made money on mutuals in the past, but like most people I don’t trust them anymore and hate the high management fees. GIC’s are crap returns so I hope there is a course out there on investing 101?

BTW on real estate…the market here in Thunder Bay is total opposite of what has been happening in the rest of Canada. When things were booming a short few years ago in the rest of Canada we were tanking because our forestry industry was killed off and is still not showing any signs of coming back. My ‘its different here’ story is that we now have what is known as ‘the ring of fire’, a chromite deposit (used in steel production) so huge discovered just north of here that everyone and their sister is here up there working on infrastructure and house prices in the past 4 years have risen astronomically. For example when I built my home in ’09 for 309 g’s I was happy to stay put long term (paid cash for my digs – inheritance) and just dote on it as the years go by. Another new home went up across the street from me last fall with same size but less add-ons and it sold for 405 g’s.

I now want to sell and move to Windsor where I see a like home to mine selling for 1/2 of what I could get here. A librarian can get a job anywhere. I do think that Thunder Bay is now the Fort Mac of northern Ontario – insane pricing all around.

I think with my rant just now I realize I can sell and move to smaller digs in Windsor with my profits and invest in chromite. You actually helped me out just now without actually doing anything…man you’re good!

#25 james on 01.28.13 at 11:59 pm

interesting question. i asked TNL@TB regarding reducing my mortgage payment. we have nearly nothing left on the mortgage and this is what she said. as we are considering purchasing a home as the year long melt continues we are considering locking in a rate (See below.) what do you think?

“You could re-amortize your mortgage back to 20 years which could take your current balance to a payment of $42 bi-weekly

I can guarantee a rate for 120 days so if you are thinking you will make a purchase in that time frame it would be a good idea to lock in a rate. For longer term rates we have 5 year closed fixed at 3.09% and you could lock in for 7 years at 3.59% or 10 years at 3.99% which are really great for long rates.”

#26 Bottoms_Up on 01.29.13 at 12:00 am

Thank goodness Garth, I thought you had died. And you haven’t even taken a sick day in 5 years, what gives?

#27 Mark on 01.29.13 at 12:04 am

If the CMHC ends up having to make massive payouts, I wonder how much the government is going to have to slash healthcare compensation in order to keep the books in reasonable order?

Should the excessively compensated nurses and doctors worry? Of course. The gravy train might not last forever. In fact healthcare today seems a lot like the hoardes that were going into the computer jobs in the 1990s.

#28 Ronaldo on 01.29.13 at 12:07 am

Kristi. Call Garth, make an appointment. Sit back, relax and let him do the work for you. You went to the right place. I’m sure that when Garth has a health problem he goes to his doctor. At least that’s what I would do. Good luck to you both.

#29 Renter's Revenge! on 01.29.13 at 12:10 am

Advice for Kristi:

1. Keep reading this blog.
2. Listen to your husband and dad. Ask them for help. Men will generally trip over themselves to help you if you ask. Conversely, they’ll feel unloved if you never ask them for help. Wait, this is turning into relationship advice, oh no!
3. Don’t feel bad about not knowing anything about investing. It’s never too late to learn something new.

Other thoughts:

There’s something deliciously evil about the taxpayers, and not the bank shareholders, covering the banks’ butts in the event of mortgage defaults. Except I’m both, so I’m not sure how I feel about this.

#30 Timing is Everything on 01.29.13 at 12:15 am

Garth, can you translate this for me? I don’t speak ‘elfin’.

“Our government has taken aggressive and proactive actions since 2008 to protect the Canadian housing market and curb personal debt. We will continue to monitor the housing market to ensure its long-term stability,” Flaherty said in statement.

http://tinyurl.com/b54d58t

#31 Boycott Made-in-China on 01.29.13 at 12:16 am

What kind of dog do you have?

The hairy kind. — Garth

#32 Smoking Man on 01.29.13 at 12:17 am

Only thing in my adult life that got a tear out of me

https://www.youtube.com/watch?v=ZEZYm7s-54Q&feature=youtube_gdata_playerOnly thing in my adult life that made me cry.

#33 Bernie on 01.29.13 at 12:20 am

Here is a nice little resource to start learning. I’m traveling the world for a year with my wife and 7year old daughter. We came upon this during our stay Bali.
http://www.cartoonnetworkasia.com/cha-ching/en/index.php?ref=cha-ching.com&WT.mc_id=
I work with my daughter on the Band Manager Game. She loves it and will never be like Kristi.
We sold our SFH in the Bloor West last June. I sold it myself in a bidding war. If real estate is porn then The Bloor West is like SoCal. Anyway, we sold and then took the money and ran. Literally. Now we are studying how business works in the far corners of the planet, thinking about our futures.

#34 NotaGreaterFool on 01.29.13 at 12:23 am

Is there a new book anytime soon, Garth?

#35 Smoking Man on 01.29.13 at 12:24 am

https://www.youtube.com/watch?v=7_NEF0_ZJUk&feature=youtube_gdata_player

Second try slight Lee wasted

#36 I know that I know nothing on 01.29.13 at 12:24 am

After the realization that I wanted to know more, I bought “The Wealthy Barber” by David Chilton. Once I learned a bit my wife attended a seminar about finances for women. We are now in managing our diversified dough and pay a lot of attention to Garth’s musings. I admit marrying well is a good start, but you still need to know about the money, its important – really.

#37 S on 01.29.13 at 12:25 am

#7 Dr. Ralph Cramdown, FRCS(C) on 01.28.13 at 11:36 pm
#11 NFN_NLN on 01.28.13 at 11:41 pm
#16 Drill Baby Drill on 01.28.13 at 11:45 pm

Jesus Christ… Hope you guys are half as good at counting your own money as you think you are at counting theirs… I’d prefer to hear from the gold bugs than having to wade through this cynical bullshit.

#38 Mixed Bag on 01.29.13 at 12:26 am

Must be nice to not have to think about money. I don’t mean the marry the doctor part, rather, it sounds like she never had to concern herself to begin with. As Goldie mentions in #22, never bothered to pay attention. G&M is for grandpa? What are you, twelve?

Years ago I worked with a girl, whose father was a VP at a prominent natural resources company, which is to say that she grew up more privileged and unaware than those whose fathers did not have such employment. She told us of a conversation she had with her husband about their finances. When he told her that they were tight on paying some bills, she told him to “just get the money from the other account”. He tells her “What other account? This is the only account we have.” Where is this other account money magically coming from? Because she’d heard similar exchanges from her parents. We were speechless.

How does a grown woman, with a university education, working towards certification in her line of work, not have awareness of her family finances? Not bother to care about them? They so easily give up control and responsibility of their lives. Seems her two-year college diploma husband was the one with his head on straight.

I hate that this comes across as another dumb woman story, because believe me, my mother and grandmothers were the ones with their financial heads on straight, lest anyone start getting any ideas.

#39 What do I know? on 01.29.13 at 12:30 am

Kristi,
Start simple. Read an entertaining little book written 100 years ago and still in print. It is called The Richest Man in Babylon. Also if you rely on financial advice from a physiotherapist it may not work out how you expect.

#40 I'm stupid on 01.29.13 at 12:31 am

Sorry Garth but the numbers don’t add up. Both women earn the same amount of money. One saved 10k the other made 250k in 4 years.

6 conclusions

1 Kristi spends way too much money
2 her friend only goes to work and home and saves every penny and invested it over 4 years
3 her friend makes way more money then Kristi
4 she lied
5 she has better return rates then Warren buffet
6 her friend is 10 years older and saved and invested over the long term and achieved standard returns over that time to get to 250k

#41 Dr. WAYNE on 01.29.13 at 12:34 am

#3 shanks on 01.28.13 at 11:32 pm

first!

Stop that. — Garth

AND …

#5 Don on 01.28.13 at 11:35 pm

First?

=========================

We’ve got two gargantuan a$$holes here who have not taken the venerable Mr. Turner’s request to heart to cease and desist the infantile compulsion to type FIRST, as a symbol of masculinity and supremacy (in their own minds) …

#42 cj on 01.29.13 at 12:34 am

I don’t think you are alone in not understanding what the financial system is all about. The first step is acknowledging it and begin the learning. Start with easy reads- Garth’s books eg: money road is a good start. Wealthy Barber is also great. get books that are Canadian based so it will also help you with tax implications and which accounts are best for certain investments. At the end of the day it is “not timing the market” but “time in the market”. A major flaw of investors is greed. Be satisfied with conservative investments with low to medium risk. Many will share their darling stock but won’t tell you about the duds in their portfolio

It would be naive to assume that being married to a doctor will protect your finances now and in the distant future. I know doctors who really got their financial plan hammered in 2008 and still haven’t recovered.

There are many free seminars. Garth often comes out to speak. I also agree with him that ETFs are the way to go for all investment accounts. You can get indepth information on ETFs at http://www.canadiancouchpotato.com. Even if you turn your financial portfolio to an advisor, you need to work with them in partnership. 27 is young and a perfect time to get going on building a secure financial portfolio for both of you.

#43 robert on 01.29.13 at 12:34 am

A quick story for all. Takes place in the interior of BC. This 14 year old home sits in the interior of BC and has an accessed value of $449,000. It needs about 20k worth of updating and was purchased recently for 398k by friends of ours. They were putting 20% down in cash and had the cash to update the home. All was going well up until the point the Bank asked for an appraisal. The realtor thought it would come in around $430,000 to $440,000 so the buyers felt that they were buying the home right. Well the appraisal came in at $398,000 and this killed the deal. I told them they should send the appraiser a thankyou note for saving them from a devastating mistake. This market is tanking no matter what the real estate board cheerleaders tell you.

#44 Gregor Samsa on 01.29.13 at 12:34 am

On all the “bank downgrade” articles all I see is commentary to the effect that it doesn’t matter, Moody’s doesn’t mean anything, our banks are solid, blah, blah. And here Garth is saying the same.

So riddle me this: if we are so safe and secure, why did they do it?

Maybe they see what I see in Canada: nothing but ballooning debt. Provincial debt? Growing, even Alberta. Federal debt? Still Growing. Personal debt? Growing the most of all!

Who lends all this debt? Banks.

#45 Kaganovich on 01.29.13 at 12:35 am

Canadian Watchdog wrote:

Now you sound like a housing perma-bull Garth. I know. It’s different here. We have good good banks.

Spare it. You’ll be wrong. All that’s left is for international investors to realize Canada is nothing but a pipedream that was sold as AAA on non-discloser. They can shuffle the debt around all they want, when eventually, someone has to pay it.

It won’t be the shareholders. — Garth

Perhaps we could have a Canadian version of this Icelandic victory for the people (well 93% of the people anyhow):
http://globaleconomicanalysis.blogspot.ca/2013/01/iceland-wins-lawsuit-dismissed-court.html

Have a referendum to decide whether it is right and just that the taxpayers bailout the banks via CMHC rather than the share and bondholders getting a haircut. The future is not set in stone. The majority of taxpaying citizens in Canada could very well stand up this time.

#46 Glenn Black on 01.29.13 at 12:36 am

Some crass, biting comments from others, but with a grain of truth in some.

If Kristi can wait long enough, the bad feelings she felt during that conversation in Banff will dissipate, and she can resume her financial sleep.

Alternatively, Kristi can double down on her frustrations, and then use that pain to re-double her motivation to change her financial ways for the better. I agree that Kristi is at risk as long as her ignorance exceed her knowledge, and she depends upon others for advice, decisions, and execution of those decisions. Seek only knowledge from others, then verify and test that knowledge with a Devil’s advocate approach to many others.

Beware that we are in very different times, and there are many sheep who follow and bleat the advice of their grandparents and parents, but that advice is stale, and most likely wrong-headed in these extremely different time of today.

To separate the sheep from the visionaries, ask the so-called Advisor when they first realized there was going to be a financial market crash in 2008? Then ask them how they pieced together their understanding, who were their sources, what conflicting info did they receive, when/how did they act to protect their financial capital, and what was the outcome. Ask to see some objective evidence to prove what they just told you. Verify everything they said with others.

For example, I had a feeling something was very wrong in 2001, but did nothing because I wasn’t sure, and I was like you at that time. By 2006 I was convinced something was very wrong, and we sold our house in London ON at that time to liquidate our biggest asset near the top of the market. My sources warned of the imminent 2008 market crash in April 2007. We protected our assets, and avoided any losses, and re-invested in June 2008.

After doing those interviews with a dozen different candidates (always ask them to explain what they are saying and why they are staying it, if you can’t understand, they are a poor advisor, find somebody else), you will have quite a database of knowledge, and a few good candidates from which to choose as an Advisor.

Set the limits on your current financial assets that you wish to move to the new financial-you (leaving the bulk of your $ in a safe old-you system until you have proven an effective system), assign 25% to each of your 3 best advisors, and 25% to yourself based on your new-you financial knowledge. Ask for an independent plan from all 4, then compare. Devil advocate all 4 with tough questions, underlying theory, sensitivity analysis, risks, and probable rewards. Based on the answers, throw away between 0 to 4 of the plans, and invest in the very best of the plan(s). Repeat the process again, with better knowledge and tighter criteria to your newer advisors. Once your system is proven to be a success, move more and more of your assets to the best performing, balanced portfolio (balances risk vs. returns).

I agree that the market is a zero-sum game, and the usual losers were your formal self and all the other sheep who were led to slaughter. It doesn’t have to be that way, but it usually is. Now, you can make it different with just 30 minutes per day.

#47 T.C. on 01.29.13 at 12:40 am

“Immediate waves of envy mixed with admiration and motivation coursed through my veins.”

Wow… she must be one hot little nurse.

Because after a time “banff” and “i’m” become part of an irritating pattern that will grow old along with her marriage. Generally speaking, men don’t ignore those sort of red flags unless cognitive process are subjected to massive and crippling hormonal imbalances – if you know what I mean…

As for bank stocks, well, maybe:

http://www.zerohedge.com/news/2013-01-28/mark-carney-leaves-canada-stealth-qe-rising-fastest-pace-2009

#48 Lee on 01.29.13 at 12:40 am

As the pilot friend of mine likes to say ‘Time to spare, travel by air.’ I’m sitting in Vancouver hoping to go to Toronto and on to Bogota. Looks like the weather had cleared up, better lucky than good.

Good on Kristi, there’s a special place in my heart for anyone who is willing to learn attached or not. If it is genuine than there is likely lots of help once you seek it.

#49 Boomer21 on 01.29.13 at 12:41 am

Kristi: Excuse your ignorance for now! If your friend has alerted you to investing, take the advice. Start by reading this blog and then get Garth’s recent book, Money Road. Read, learn and if you need help follow Garth’s advice and look for a fee based FA. There is no excuse for putting your money in GIC’s or Money Market funds. You are young and have lots of time to learn and invest. When someone shoves something in your face there is no excuse, you know what you need to do. Read, learn and then execute! You go girl!

#50 Chaddywack on 01.29.13 at 12:41 am

Her husband is a doctor…..she’ll be fine!

#51 street on 01.29.13 at 12:42 am

When hot 27 year old nurses develop an interest in the stock market, it’s time to get out. Maybe your husband could prescribe Mr. Market some lithium first?

#52 Smoking Man on 01.29.13 at 12:43 am

DELETED

#53 Nostradamus Le Mad Vlad on 01.29.13 at 12:44 am

-
Good post, and the best sentence in Kristi’s letter is: “Why the hell hadn’t anyone taught me this crap at age 16?”

The basic answer is that people are expected to be sheeple, dumbed down enough that they don’t ever question anything. Smoking Man’s posts about the education system are right on — kids should be taught investing, the bond and stock markets from about Grade 4 on, to give them a really good head start in life.
*
#129 CrowdedElevatorfartz on 01.26.13 at 11:03 am — “Oh and news flash! 911 was done by muslim highjackers NOT the US govt.”

Who profited from the ensuing chaos? Does the name Larry Silverstein ring a bell? Silverstein had recently taken over ownership of the money-losing WTC, and just a week or two prior to the ‘attacks’, took out a multi-billion $ insurance policy against terrorism. While all the mess (a lot of it asbestos) was being cleaned up, Silverstein put his claim in, was denied, took the insurance co. to court and a eventually settled for a measly few billion. Why was the mess cleaned up and removed so quickly?

Whether or not Sept. 11 was an inside job or not remains unknown. ObL died of kidney failure prior to the event, so he has become a very convenient scapegoat for the WH and Pentagon. See This, 6:10 clip, this, and this.

Ever heard of The Crusades, Christians vs. Muslims? We’re in the middle of another one. Also, remote control came into being in the early 1920s, which may explain why 17 of the 19 ‘hijackers’ are still walking free. Humans are not needed to fly planes. However, you are free to believe in the paid-for and controlled m$m slime that most sheeple follow.

#227 Smoking Man on 01.28.13 at 11:11 pm — “Gambler’s Damn, pepto don’t work, popped aspire.” — Hey babe, time to Break On Through and Take A Walk On The Wild Side!
*
Rothschild’s Gold An interesting scenario, and Sell Gold Why? Who is going to buy it? Facebook Healthy investment from GS; The Blood Dollar replacing the Petro-Dollar? Russian Gold Reserves up in 2012; Private Sector Pensions closing down at record pace; What a Waste Pic and headline says it better; American Monthly Deficit; David Cameron Taxing PM; The Humble Spud Prices going up; 12:50 clip “The Morningland Dairy site has posted that they are now out of business.” Another one bites the dust; France Hard times, and Bankrupt France; Oz roundup; Mysterious Shippers; Apple is dead.
*
Not logical Not much is, these days; Cruel and Unusual Punishment Tattoos are not that attractive, but putting one on a toddler? The Who Two of them are still rocking on; Vertigo? Don’t look at the opening pic; 4:23 clip Feb. 15 — Razor-thin margin on asteroid fly-by; Soccer As good as Barcelona, if not better; The Turbanator Takes all sorts; India New ICBM, and China Anti-missile test; Psychiatry “Psychiatry is the kind of all-out fraud few people grasp.” 117 m.p.g. New car arriving soon.

US$14 trillion extortion scam for GW; Glasgow UK’s first smart city; Mothers taking Antidepressants could be linked to rise in autism; Russian Military Ready for war; The US Govt. hates the two mln. truckers and 80 mln. gun owners; Processed Foods Manager Health activists are the main problem; North Atlantic and beyond New superstorm shaping up; Shipwreck has lots of good cargo on board; Virginia If the Fed. tries to take away individuals’ guns, there’s no one to back them up so they’re on their own.

#54 not 1st on 01.29.13 at 12:46 am

Garth, with all due respect, you are claiming to be better informed than Moody’s???

A little bit of hubris is ok but seriously Moodys regulates ratings on EVERYTHING, from stocks to the bond market to Greece and Spain and all sorts of financial instruments in between. They know the inner workings of everything financial. If they downgraded Canadian banks, then they must have had a good reason. This isn’t done every day.

#55 Nostradamus Le Mad Vlad on 01.29.13 at 12:46 am

-
Good post, and the best sentence in Kristi’s letter is: “Why the hell hadn’t anyone taught me this crap at age 16?”

The basic answer is that people are expected to be sheeple, dumbed down enough that they don’t ever question anything. Smoking Man’s posts about the education system are right on — kids should be taught investing, the bond and stock markets from about Grade 4 on, to give them a really good head start in life.
*
#129 CrowdedElevatorfartz on 01.26.13 at 11:03 am — “Oh and news flash! 911 was done by muslim highjackers NOT the US govt.”

Who profited from the ensuing chaos? Does the name Larry Silverstein ring a bell? Silverstein had recently taken over ownership of the money-losing WTC, and just a week or two prior to the ‘attacks’, took out a multi-billion $ insurance policy against terrorism. While all the mess (a lot of it asbestos) was being cleaned up, Silverstein put his claim in, was denied, took the insurance co. to court and a eventually settled for a measly few billion. Why was the mess cleaned up and removed so quickly?

Whether or not Sept. 11 was an inside job or not remains unknown. ObL died of kidney failure prior to the event, so he has become a very convenient scapegoat for the WH and Pentagon. See This, 6:10 clip, this, and this.

Ever heard of The Crusades, Christians vs. Muslims? We’re in the middle of another one. Also, remote control came into being in the early 1920s, which may explain why 17 of the 19 ‘hijackers’ are still walking free. Humans are not needed to fly planes. However, you are free to believe in the paid-for and controlled m$m slime that most sheeple follow.

#227 Smoking Man on 01.28.13 at 11:11 pm — “Gambler’s Damn, pepto don’t work, popped aspire.” — Hey babe, time to Break On Through and Take A Walk On The Wild Side!
*
Rothschild’s Gold An interesting scenario, and Sell Gold Why? Who is going to buy it? Facebook Healthy investment from GS; The Blood Dollar replacing the Petro-Dollar? Russian Gold Reserves up in 2012; Private Sector Pensions closing down at record pace; What a Waste Pic and headline says it better; American Monthly Deficit; David Cameron Taxing PM; The Humble Spud Prices going up; 12:50 clip “The Morningland Dairy site has posted that they are now out of business.” Another one bites the dust; France Hard times, and Bankrupt France; Oz roundup; Mysterious Shippers; Apple is dead.
*
Not logical Not much is, these days; Cruel and Unusual Punishment Tattoos are not that attractive, but putting one on a toddler? The Who Two of them are still rocking on; Vertigo? Don’t look at the opening pic; 4:23 clip Feb. 15 — Razor-thin margin on asteroid fly-by; Soccer As good as Barcelona, if not better; The Turbanator Takes all sorts; India New ICBM, and China Anti-missile test; Psychiatry “Psychiatry is the kind of all-out fraud few people grasp.” 117 m.p.g. New car arriving soon.

US$14 trillion extortion scam for GW; Glasgow UK’s first smart city; Mothers taking Antidepressants could be linked to rise in autism; Russian Military Ready for war; The US Govt. hates the two mln. truckers and 80 mln. gun owners; Processed Foods Manager Health activists are the main problem; North Atlantic and beyond New superstorm shaping up; Shipwreck has lots of good cargo on board; Virginia If the Fed. tries to take away individuals’ guns, there’s no one to back them up so they’re on their own.

#56 :) :( Ying Yang on 01.29.13 at 12:49 am

Perhaps she can read some investing books, ask other friends about their investment strategy. But for god sakes don’t invest in friends ventures, keep your investing discussions separate from your friendly chit chat. Good way to disovle a friendship over a bad investment on someone else’s advice. Ask questions, learn, school of investing states you never get to graduate as every year is a new one! Oh yes read this blog occasionally someone has some insightful information!

#57 nottobuyhouse on 01.29.13 at 12:52 am

bought the stock of Jazz air at 3.02 a share in Nov 2012 for 20,000 shares, sold 4.35 this wk, in two months make 32,600 (with 2 dividents), gains 54%. why buy house?

#58 Alberta Ed on 01.29.13 at 12:53 am

Find a good financial advisor.

#59 Devore on 01.29.13 at 12:57 am

#25 james

120 days is a year long melt? How much do you expect prices to drop in this time, exactly?

#60 Mixed Bag on 01.29.13 at 12:59 am

On the plus side, good for Kristi for wanting to learn and asking for help.

#61 :) :( Ying Yang on 01.29.13 at 12:59 am

Smoking mans new book titles,

Casino Investment Strategies!

I’m Drunk Don’t Talk to Me!

Up In Smoke!

Pink Floyd Tour Guide

He’s Short but I’m Long!

#62 EW on 01.29.13 at 1:02 am

Kristi,

There are several good recommendations on this blog so far. Some of the books are good:

1. The Wealth Barber has some good concepts in it about wealth generation.
2. Millionaire Teacher by Andrew Hallam is an easy read and talks about bonds, stock market, and ETFs. Somehow I got my wife to read this book and she isn’t interested in this stuff all. She found it very helpful.
3. For definitions try http://www.investopedia.com/. Look up ETF or other terms and then watch the little movies that describe the terms.
4. You can also find terms at online brokerages like Questrade http://www.questrade.com/trading/stocks_options.aspx
5. Be patient. This takes time to learn, some mistakes will be made, and opportunities lost. Money can be transferred to more profitable vehicles later.
6. Get some good advice. It’s not all about Stocks/ETF’s… It’s also about accounting and taxes. I believe you can hire garth for a fee, which might be a good idea to get started.

#63 ApplePi on 01.29.13 at 1:03 am

She’s a nurse and she married a doctor and she has a small bit of savings. One of two things is true:

She spent a lot of time paying off student loans
She doesn’t know how to truly save

I know it’s more than most people have in their account, but you can only GROW what you actually save. Here’s a GREAT article on why the AMOUNT you save is much more relevant than how much you gain.

http://canadiancouchpotato.com/2012/03/05/some-advice-for-new-potatoes/

% gains become FAR more important when you have a larger portfolio.

#64 Vangrrl on 01.29.13 at 1:06 am

Oh Garth, your doggie misses you too. You’ll be home with him soon.

Kristi’s young, has a decent job, just has to hit the library or bookstore or the archive here and get reading!

#65 InvestX on 01.29.13 at 1:13 am

“The big difference between our bankers and Yankee ones is the feds.”

So wait… It’s different here?”

#66 The Prophet Elijah on 01.29.13 at 1:16 am

CMHC wont have enough to cover when the shtf.
The ratings agencies have learned from the US experience, the canucks didnt. The prophet has spoken

#67 Led on 01.29.13 at 1:17 am

I trade stocks.You need to get involved by transferring your rsp to a self managed one. but before investing in one stock go to youtube and learn technical analysis for a few months. paper trade at first. get to know bollinger bands, rsi, the macd. Never marry your stocks – if you are wrong, dump it.

#68 DJB on 01.29.13 at 1:18 am

Lesson #1 you have to check your emotions when investing in the market.

Lesson #2 learn how to hit the sell button

Lesson #3 do not follow the herd

Lesson #4 if you know very little stick with ETF’s (low beta ones if you don’t like volatility)

Go to the iShares site and click on the model portfolios to start.

#69 The Man From Nantucket on 01.29.13 at 1:22 am

#25 james on 01.28.13 at 11:59 pm

James, if I were you, before I did anything crazy like re-fi for a 20 year ammortization and a five plus year term, I’d make damned sure I understood how the early payment penalties work.

#70 Jeff on 01.29.13 at 1:22 am

Check this out. This graph says everything.

http://cdn.theatlantic.com/static/mt/assets/business/HousingPrices.png

#71 Z on 01.29.13 at 1:22 am

Your flight sounds like my road trip from Vancouver to Calgary ….over the Christmas holidays. 12 car pile-ups — overturned 5 Ton trucks — on the icy CoocaBANGA aka Coquihalla. My cat doesn’t like planes .. she loved the road trip. My nerves were shot … 20% more grey hair ….thoughts of sugar plums and momentary thoughts of vultching in Kelowna. BUT I had my fury little beast :).
Sorry you are in such a pissy mood and missing your pooch ….. think ….summer road trips with your pooch in the side car of your Harley :)
Thanks for the great blog.

#72 ANON on 01.29.13 at 1:27 am

“It won’t be the shareholders. — Garth”

At this point in time, ain’t nobody below them who has two pennies to rub together, so they’re the next in line.

#73 Deliverator on 01.29.13 at 1:30 am

This jives with the never-ending bleating we hear on this blog about how a housing correction in Canada will topple the towers at King & Bay the way the US crash killed Lehman, Bear Stearns and most other American investment banks. Some people think if prices continue to sink in Victoria, Vancouver, Edmonton or Mississauga (they will) that banks’ mortgage portfolios will be gutted, profits tumble and share prices halve. This is clearly what Moody’s was digging at. And it’s plain wrong.

Now you sound like a housing perma-bull Garth. I know. It’s different here. We have good good banks.

Spare it. You’ll be wrong. All that’s left is for international investors to realize Canada is nothing but a pipedream that was sold as AAA on non-discloser. They can shuffle the debt around all they want, when eventually, someone has to pay it.

It won’t be the shareholders. — Garth

Why not? They don’t matter. The BONDholders on the other hand…

#74 KingBubbles on 01.29.13 at 1:32 am

“… big surprises in Saskatoon and Winnipeg, …”

Garth, what do you think the surprise, percentage-wise, might be for Winnipeg and Saskatoon ?

I thought everyone in those cities get ponies and unicorns for ever and ever…..

#75 pathcontrolmonk on 01.29.13 at 1:36 am

Garth, is your dog’s name Hooch?

Here is a price sampling of the growing disparity between the delusional and the realists in the YVR False Creek condo market:

954 sqft 3 storey (!) condo, 28 yo, wood construction, 8 blocks west to South Granville, 2 parking spots, pet friendly, fireplace

982 sqft 1 storey condo, 13 yo, concrete construction, rainscreened, 1 block west to South Granville, 5 min walk to Granville Island, 2 parking spots, pet friendly

One is 30% more than the other! Which would you think?

http://www.realtor.ca/propertyDetails.aspx?propertyId=12776002&PidKey=-1508762844

http://www.realtor.ca/propertyDetails.aspx?propertyId=12765445&PidKey=-2080117963

#76 Deliverator on 01.29.13 at 1:39 am

Kristi: buy Garth’s book, “Money Road”. It will get you started on e basics. And don’t buy a house. Yet.

#77 Freedom First on 01.29.13 at 1:46 am

Garth, thanks for writing your blog today. Flying is a pain in the ass to begin with, so, sorry to hear about your flight experience and being rerouted to that Province. Have a safe trip tomorrow!

Kristi. Let me get this straight. You are 27, a nurse, and your husband is a Doctor, while your friend is a diy investor who has successfully accumulated a $250,000 profit in the last 4 years. I think you are either teasing us,(bs?) or you are on the up and up, and are fortunate to have just found 2 really good sources for information on managing your finances. Garth Turner, and your investor friend.

#78 Shrit4brawns on 01.29.13 at 1:47 am

doctors are way overpaid

eventually the politicians will reign in their excessive income growth

that said, she’s probably hot, he’s probably not, but he brings home the bacon and she keeps it sizzling hot.

just the way things work, eh SM!

#79 too much debt on 01.29.13 at 1:57 am

#36 I know that I know nothing

20 Years ago my girlfriend at the time bought me a copy of “The Wealthy Barber” I was 20 years old at the time and was not overly appreciative when I opened it at first, but I read it and it started me on the path to financial literacy and security. It peaked my interest in finance and investing for myself. It has turned out to be the best birthday present I ever got and the second best thing she ever gave me…….

#80 Dan on 01.29.13 at 1:59 am

Limit television and travel mostly avoiding touristy places and itll do a lot for your education. Surround yourself with really good people.

#81 Who on 01.29.13 at 2:05 am

Wow, that’s why I hate flying. Those captains are control freaks, they never let me drive. I’ve told them look man I can do a better job than you but they just mutter to take my seat and something about the police.

#82 Mister Obvious on 01.29.13 at 2:10 am

Kristi,

First understand that the real purpose of wealth is not for material and status, but rather freedom of choice. Wealth is what pulls you out from under the thumb of wage slavery and opens the door to personal liberty.

You must begin creating your own. Do not assume your wealth resides in your partner’s portfolio or that of Mom & Dad. Love, honour and protect for sure, but be certain to control your own financial destiny!

Also know this: Hot or not, you too will grow old and frail. You can hope your family, dear friends or the government will be there to assist you at that stage of life but you have no way of knowing for sure. Money will be very kind to you then.

Be sure to thank your lucky stars you live under a capitalist system where money begets money. There are many who would laugh at the suggestion Canadians live under true capitalism but they generally never tried to make a go of it in, say, Somalia, Albania or some other failed former communist state

Garth is a very smart, hardworking fellow and you are wise to seek his council. He knows how to get rich slow. He can help you do that. Slow is key. Patience is key. Garth has written several books worth reading from which anyone of average intelligence may benefit. Someone on this blog also mentioned David Chilton. Absolutely, check him out too.

And what is it with you nurses? About a month ago I posted something on this blog to the effect that I know personally about eight nurses who are very experienced, well into their careers and hold senior positions. Not one of them has any significant savings whatsoever. A few are approaching retirement still carrying serious debt after years in the business. Why, I ask? They’ve earned plenty but it just slips through their fingers. They can’t really say where.

Well… I know pretty well where all my life’s money came from, where it’s been, where it currently resides and where it’s going. Granted, a certain amount of it was killed along the way but that’s part of learning. Try not to kill too much money. But if you do, be like Kevin O’Leary. Hold a funeral for the dead funds, learn your lesson, and then move on.

#83 NoOneOfConsequence on 01.29.13 at 2:10 am

I do database and web programming for many doctors. Most of them live paycheck to paycheck…they spent their whole lives learning their trade and don’t have a clue how to manage anything but a trauma patient.
Kristi needs to find a fixed fee advisor fast. Then read some back issues here and study what was covered.
I know more doctors in tax trouble than I do those who are financially literate.
CRA has a dept. dedicated to helping doctors deal with their tax problems.
I am jealous of their take home pay, but not their tax situation!

#84 The Bear on 01.29.13 at 2:15 am

19 and have a pathetic diversified (barely) portfolio of $6,000. Just started messing around with stocks up 14% in past 2 months. Still better than S&P 500.

I’ll take it.

#85 Tom from Mississauga on 01.29.13 at 2:30 am

Start with reading this blog Kristi. I’ve learned answers to problems I didn’t know I had. Good luck!

#86 Soylent Green is People on 01.29.13 at 2:37 am

Into the Abyss: How a Deadly Plane Crash Changed the Lives of a Pilot, a Politician, a Criminal and a Cop

Carol Shaben (Author)

On an icy night in October 1984, a Piper Navajo commuter plane carrying 9 passengers crashed in the remote wilderness of northern Alberta, killing 6 people. Four survived: the rookie pilot, a prominent politician, a cop, and the criminal he was escorting to face charges. Despite the poor weather, Erik Vogel, the 24-year-old pilot, was under intense pressure to fly–a situation not uncommon to pilots working for small airlines. Overworked and exhausted, he feared losing his job if he refused to fly. Larry Shaben, the author’s father and Canada’s first Muslim Cabinet Minister, was commuting home after a busy week at the Alberta Legislature. After Paul Archambault, a drifter wanted on an outstanding warrant, boarded the plane, rookie Constable Scott Deschamps decided, against RCMP regulations, to remove his handcuffs–a decision that profoundly impacted the men’s survival. As they fought through the night to stay alive, the dividing lines of power, wealth and status were erased and each man was forced to confront the precious and limited nature of his existence. The survivors forged unlikely friendships and through them found strength and courage to rebuild their lives. Into the Abyss is a powerful narrative that combines in-depth reporting with sympathy and grace to explore how a single, tragic event can upset our assumptions and become a catalyst for transformation.

http://www.amazon.ca/Into-Abyss-Changed-Politician-Criminal/dp/0307360229

.

GT you lucky you made it out alive!

#87 Muddy Waters on 01.29.13 at 2:41 am

“…A half hour later we were low enough that only a few feet separated the newly-deployed wheel from the enshrouded asphalt, when again we careened and aborted. And the captain said we were done
There are lots of things to worry about…..The big banks are not on that list. But Porter Airlines is…..”
——————————

Then again, you could always push the weather a third time and become a lawn dart in the side of the CN Tower. I wouldn’t be so hard on Porter. We had many (Non-Porter) Dash 8 diversions from Pearson as well today. Garth lives to write another day…

#88 GC on 01.29.13 at 2:59 am

When I’ve been stuck in Dorval I escape by cab to the Topaz bar at Pointe Claire mall. Not exotic but ok.

#89 rentin on 01.29.13 at 3:07 am

Must be late, as I can’t stop laughing at Kristi. Reminds me of this:

http://www.relativelyinteresting.com/wp-content/uploads/2010/12/funny%2Bexam%2Banswer%2B006.jpg

#90 Half Full on 01.29.13 at 3:13 am

#16 Drill Baby Drill on 01.28.13 at 11:45 pm
Isn’t this why women marry doctors so that they don’t have to worry about money ?

#17 hoser on 01.28.13 at 11:48 pm
The investment you made in your relationship has already financed your future. You were smart enough to snag yourself a doctor,

Really? You two turds actually wrote that? At least Kristi is aware that she is missing some information and needs an education.

Kristi, ga[email protected] call him and have a chat. I thought I had financial knowledge, and then Garth gave me a real perspective and sound financial advise. You got yourself through nursing. Now start on your next Chapter of learning.

Garth, you sound like you need a big hug! Hang in there!

#91 Richard and Zeus on 01.29.13 at 3:37 am

Funny how every time I read a story about joe and Mary six pack…….they always seem to be govt workers. Enjoy your sky high taxes to pay for them folks.

#92 A Nightmare on Bay Street on 01.29.13 at 3:54 am

I was talking to a friends dad a few months ago. He won a big sum of money at the casino and was bragging about it and his different “strategies”.

What do lottery/casino winners and stock investors have in common ? We only hear about the winners.

Those who lost 10 000$ in casinos wont tell you they did.

So im happy for her hot 27ish friend. But she should take it easy. To have a winner, you need a loser. And now that everybody now buy stocks on their android apps, guess who will be the losers. Big shots and real sharks are now higher in the game. When your slightly retarded brother in law will buy stocks on his phone in a theatre (during “the last stand”), you should know.

#93 futureexpatriate on 01.29.13 at 4:00 am

Then there’s the quick way for hot girls to riches: Divorce husband 1. Marry husband 2. Divorce husband 2. Marry husband 3. Divorce husband 3. Marry husband 4. Divorce husband 4. All preferably before 40, and each successive husband will, of course, be richer than the previous, because you will be living a richer lifestyle and snaring richer men. Also, try not to have children.

Cackle? Works for millions of women. All on HGTV looking to buy islands with Hubbie 5.

#94 Buy? Curious? on 01.29.13 at 4:06 am

Garth, you can Kristi that there’s always room in the hot tub at Casa De Curious!

On a some what serious note, Conrad Black, my favourite Canadian of all time (no disrespect Garth, but he’s got street cred, a ghetto passport, if you will) is getting his own talk show! Why can’t you get a talk show on Canadian TV? They gave one to a sock puppet smoking a cigar and George Strobolopopluslus, surely you can do better than them? You’ve got looks, brains and killer wit. Do you mind if I start a petition to get you on TV?

#95 Greg on 01.29.13 at 4:09 am

I agree with #12. Check out canadiancouchpotato.com and also read the book “Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School” by Andrew Hallam (http://andrewhallam.com/). Both have similar philosophies to Garth.

#96 HD on 01.29.13 at 4:20 am

Kristin,

I am 28 and started investing on my own when I was about 25-26.

I started by reading The wealthy barber, The wealthy barber returns, Millionaire Teacher and Money Road in that order. In addition, I started following this blog.
One day, I saw the light and had a great epiphany. I knew exactly what to do to be successful. My investments are doing great and I’m currently at 75K.

I never looked back.

Now, I can’t wait to reach the 100k mile stone.
Piece of advice:

More power to you if you want to do it on your own. You must read and educate yourself as much as possible before you take on that challenge. Visit this blog regularly and don’t be afraid to ask questions. It will be hard but very rewarding at the end to be in control of your finances.

Or,

Like other blog dogs already suggested, you can find a good fee-based financial advisor to do the work for you.

Good luck!

Best,

HD

#97 Buy? Curious? on 01.29.13 at 4:20 am

“You can tell Kristi” curse my lack of proof reading and reliance on these stupid Blackberries! Curse them to hell!

#98 happy renter on 01.29.13 at 4:22 am

Join Philsgang.com and learn about trading stocks and etf.Phil has 40 years trading experince all for $40 a month.Well worth it.

#99 Smoking Man's Old Man on 01.29.13 at 4:25 am

Real time with Bill Maher has to be the one of the brightest and funniest shows on TV!

As far as your financial illiteracy problems go I wouldn’t be too concerned, at least you had the foresight to marry a doctor, and when that gets old just take him for half…

#100 the captain - hi snides on 01.29.13 at 5:27 am

from #22:

“True? I can’t write like that… — Garth”

i don’t believe that you fabricated the email. my suspicion was directed at the one who sent it to you.

i’d never publicly disrespect my favorite blogger in his own house.

#101 the captain - hi snides on 01.29.13 at 5:29 am

btw, obviously this is Goldie here… :) (diff. PC)

#102 JuliaS on 01.29.13 at 5:58 am

Being able to live till 27 without having to know what money is – that’s a blessing! No surprise. Judging by the letter her entire family was financially savvy with brains to spare.

Then again, her awakening didn’t come out of a loss or a life’s challenge. It was jealousy towards some friend who might’ve gotten rich trading AAPL for all we know.

“Why the hell hadn’t anyone taught me this crap at age 16″ she complains.

Excuse me, but didn’t she just spend an entire paragraph explaining her ignorant attitude when every single surrounding person was trying to clue her in earlier?

And what does she do to correct the error? She takes advice from an RBC guy! I’m sure he’s acting in her best interest.

When that same guy tells me where to put my money I tell him to **** off. If I followed his advise throughout the 2000’s I’d have 100K less in my bank account.

#103 The real Kip on 01.29.13 at 7:15 am

“In case you missed it, TD, Scotia, CIBC, BeeMo, National and Desjardins had their long-term ratings zapped by Moody’s”

Royal Bank was not included on the list. A quick bit of research shows why. The credibility of Moody’s is pretty much zero.
O
Moody’s had already cut Royal Bank’s long-term deposit rating to Aa3 from Aa1 in June as part of a move to cut the credit ratings of 15 of the world’s largest banks, including Bankof America, JPMorgan Chase, Citigroup and Goldman Sachs.

Oh and Kristi, why don’t you just go get you hair done honey.

#104 Augusto on 01.29.13 at 7:16 am

Kristi,

Thank you for sharing. I begun my financial literacy via Wikipedia. Start with any word (i.e. stock market) and let your voyage begin. As you begin to become familiar with the language, then you’ll gain confidence and be able to understand more and more.
This is how I started and my learning will continue for my whole life.

#105 Rick Perry on 01.29.13 at 7:16 am

Garth you should recommend her to buy the biggest and most expensive house they can afford, because they have high paying jobs they can help stimulate Canada’s economy further and help sustain the ponzi scheme that is the pension system. We need to get the Canadian people in as much possible debt as we can raise it, and than watch the dominos fall where they may after the collapse! The real winners will be those who hold physical assets with intrinsic value! Go Canada!

Vancouver is the 2nd least affordable major city on Earth, Toronto currently has the most skyscrapers being built anywhere. Government is on the hook for around 1TN in mortgages. Luckily there is NO mortgage meltdown coming, will never happen because Canadian housing prices go up forever fortunately.

6 Canadian Banks just got downgraded. Alberta (oil sands Alberta) can’t manage to balance it’s books.

Yes that’s correct – the perfect picture of financial health! Quick, buy Canadian bonds!! GO CANADA!!!

I am Rick Perry and I approve this message.

#106 Asse on 01.29.13 at 7:21 am

Average doc income $307k
Average nurse wage $70k

Why worry about money? Find a good solid financial advisor…I like the Assante group…And live

#107 House on 01.29.13 at 7:34 am

Banks are good .

It can’t happen here.

#108 Montrealer on 01.29.13 at 8:13 am

Hey Garth next time you’re in mtl tell us right away we can have a little private speech since you never come to speak here!!!

#109 drydock on 01.29.13 at 8:19 am

#18

Or go for a polar ride on the new water slide.

#110 Rob on 01.29.13 at 8:22 am

The banks are at risk for decreasing share prices. They have valuations that are a multiple of those in the USA. All based on the strength of housing. Yes they won’t take hits from the bad loans, but they won’t be making huge profits anymore from issuing crappy loans that are backed by CMHC. Banks are tied to our canadian economy, which is 30% housing. I would not touch these banks at all. Go by US financials, they have a much cheaper valuation and their real estate and economy is on the rebound. We are just peaking.

#111 Neil Parsons on 01.29.13 at 8:23 am

Hard to feel sorry about Kristi’s financial ignorance. A nurse with a doctor for a husband really does not need to worry about investments, she just has to stay hot looking.

#112 Tony Right on 01.29.13 at 8:23 am

Really? Nurse and doctor and she has worries! Out…of…touch.

#113 Marie Snyder on 01.29.13 at 8:28 am

@12 above – “Assuming the doctor hubby has a bigger chunk to invest…”

If he’s also 27, he could be mired in debt from being in school so long rather than have chunks of money sitting around.

Also, marrying up is not a good long-term investment plan – as many are suggesting it is here. The bottom can totally fall out on that one.

#114 detalumis on 01.29.13 at 8:46 am

I would suggest Kristi if she really is a woman and not Chris in a same-sex relationship, I never heard any use phrases like “have the balls” or call their girlfriends beautiful blondes as descriptors to third party males, but anyway, she should go back to school and become a doctor herself. They actually encourage nurses to do that, you get in easier.

Then she can become a dermatologist or whatnot something with no on-call and make the big bucks too. In Ontario we have a new model where they can run medical spas and get to do OHIP patients on the side beside the botox ladies. It’s very lucrative.

Then whatever the heck she does with the piles of money that falls in her lap she will be just fine.

#115 Jeff in Moose Jaw on 01.29.13 at 8:53 am

That was one intense flight – holy S***!
And you still made the post, impressive.

#116 james on 01.29.13 at 8:56 am

#69, thanks for the note. i was thinking about that as well. likely we are so close we could even take a loan to pay it off at a similar interest rate.

#59, i don’t believe a melt will happen within 120 days. i would love if we could secure a rate that would still be in effect around october when the rate is anticipated to rise.

#117 Steve on 01.29.13 at 9:06 am

Kristi,
Here are a few suggestions. Number 1, DON’T DEAL WITH A MUTUAL FUND SALESPERSON. The “free” advice will cost you a fortune. Number 2, don’t go the self-directed route unless you have a ton of time to learn what you need to learn. Most working people just don’t have the time. Number 3, do some research to find a good independent advisor. The key word is independent, meaning “not a fund salesman”. They are hard to find, especially in backwater places like New Brunswick, where I live. Garth might be able to suggest someone. Good luck. You’re young, and you have lots of time to build a sizeable portfolio to prepare for retirement.

#118 Paully on 01.29.13 at 9:14 am

The book that I read to get started down the road to understanding investments and the stock market is called “How to Buy Stocks” by Louis Engel. It is a very well-written book that explains the stock market in a very simple and clear manner. Kristi should check it out.

#119 CJ on 01.29.13 at 9:19 am

Note to Kristi:

Pick up a copy of “The MoneySense Guide to the Perfect Portfolio” for a quick start guide on where to invest your money. You can always change things but that’s a good start that won’t get you into trouble.

If you want more reading: “Millionaire Teacher” by Andrew Hallam is excellent.

Both of the above were written by Canadians, with advice applicable to Canadians.

(and, of course, pick up “Greater Fool”, Garth’s own book about the real-estate bubble ;)

#120 EIT on 01.29.13 at 9:36 am

Kristi,

I listened to http://www.financialsense.com, the podcasts used to all be free which was awesome. Jim is doing a lifetime series now too boot, sure its american but its nice to expose yourself to the banter, even if you don’t understand it. That goes for all other respectable finance broadcasts (even including this pathetic one). & start following the news. Most of all, become as independent and knowledgeable as possible, in the end, only you can protect yourself. Protection from what, well mostly human stupidity (the unwitting tendency to self destruction). Even lawyers, accountants and advisers can do dumb things. When its your life and future, what are you gonna do? watch a movie on netflix instead?

#121 Smoking Man on 01.29.13 at 9:36 am

#53 Vlad

Boom, right on……….. Everybody Knows about 911.

But threw years of schooling and programming the herd knows it don’t want to be made an example of. Don’t want to be shunned… Don’t want to lose there jobs by stating the obvious..

If find it funny when x military, and government insiders retire they do a 180 and say. Yes it’s an I side job..

#122 Burnaby Renter on 01.29.13 at 9:38 am

Good for Kristi for waking up to her reality and wanting to do something smart with her money, besides throwing it away on real estate. Be kind Garth, be kind.

#123 EIT on 01.29.13 at 9:39 am

Oh and Kristi, if you let money just fall on you, the government will catch an ungodly amount.

#124 maxx on 01.29.13 at 9:39 am

Kristi, if you are indeed for real, I would start with this:

-you are very young, therefore time is on your side;
-you have the motivation to do something;
-as a very wise sage (Garth) once said: “fear is not your friend”;
-to which I would add: your ego will cost you a whack of cash- always;
-And start with the following:
—read this blog;
—devour books on finance;
—figure out (yesterday) what kind of money person your other half is, because if you’re essentially both on the same page and want to become wealthy, you will;
—interview fee-for-service financial professionals; and,
—realize that the learning process will continue throughout your life and is well worth the time. Good luck!

#125 CrowdedElevatorfartz on 01.29.13 at 9:42 am

That poor poor girl….. pulling in a Nurses salary and married to a doctor….ski trips to banff….The horror.

I cant type anymore …I’m tearing up.

that poor poor girl.

#126 Herb on 01.29.13 at 9:45 am

Kristi,

never mind the blog dogs peeing on your leg. You’ve had a wake-up call, so do it.

Talk to your husband – you’re in this together. Then get a good honest financial advisor (try Garth – you might like it!) to review your situation and come up with a plan for your (enviable) financial future. By all means satisfy your curiosity about investing and learn enough to keep an eye on your investments and advisor, but let the advisor do the financial stuff and get on with your life’s work, which is medicine, not money.

#127 Not 1st on 01.29.13 at 9:53 am

Most people between the ages of 16-27 won’t have really any extra money to invest in the stock market anyway. how much does a 16 year old make? And at 27 you are usually just getting a leg up in your career, paying off student debt and trying to scratch a downpayment together. Someone who has extra money at this time in their life was probably a silver spooner anyway and had a big head start.

Stocks are fine but a lot of money can be made in the right RE too. Plus the are capital gains exemptions in RE too. Stocks have preferential dividend tax advantages but not on capital gains.

#128 rosie "moving forward" on 01.29.13 at 10:04 am

To be fair to Kristi and others like her, she is not stupid or ignorant. Moving backwards, for a moment, how many here had a financial clue at 27. When I was that age, 30 years ago, if you had money you put it into a G.I.C. paying 19%. Awareness is the first step. She has lots of time. If finances, to you are like algebra, for me, hire a professional. And keep moving forward.

#129 AK on 01.29.13 at 10:16 am

#41 Dr. WAYNE on 01.29.13 at 12:34 am
“#3 shanks on 01.28.13 at 11:32 pm

first!

Stop that. — Garth

AND …

#5 Don on 01.28.13 at 11:35 pm

First?

=========================

We’ve got two gargantuan a$$holes here who have not taken the venerable Mr. Turner’s request to heart to cease and desist the infantile compulsion to type FIRST, as a symbol of masculinity and supremacy (in their own minds) …”

LOL…:-)

The poor losers were probably waiting around hours for Garth to upload the article and they still could not make it first. Very embarrassing, Indeed!!!

#130 FML I AM A SKRenter on 01.29.13 at 10:20 am

Over the last three recorded weeks in Regina firm sales have decreased an average of 54.7%. Over the last 13 weeks it has only increased once, the 3 month total is down 22.1%. Active listings have increased, only slightly though. Median price is up.

Somethings brewing and it ain’t are malted barley.

Source: http://www.reginarealtors.com/images/trendline/weekly_activity_reports/2013/regina-wma-2013-01-22.pdf

#131 Finally on 01.29.13 at 10:25 am

You’ve married a Doctor, you don’t need to save. Just spend all his money and be happy.

#132 richard on 01.29.13 at 10:30 am

#17 hoser………….lol what you said is so true! lol

#133 Foolish Fool on 01.29.13 at 10:32 am

http://www.theglobeandmail.com/report-on-business/top-business-stories/why-moodys-fitch-are-worried-about-canadas-housing-market-consumer-debt/article7936608/

Looks like others are catching up with Garth’s warnings…
Funny how this world works…eh?

#134 Toronto_CA on 01.29.13 at 10:54 am

What do you think Garth? Any recession in Canada for 2013? I think we’ll need an external shock for that to happen. We should plod along with 1.5%-2% annual growth rather than negative in my mind. Still, good read:

http://www.canadianbusiness.com/economy/canada-will-slip-back-into-recession-in-2013/

#135 Pr on 01.29.13 at 10:55 am

I heard their is a bond bubble growing. So do like everyone, invest their!

#136 Spiltbongwater on 01.29.13 at 11:01 am

How is a 16 year old allowed to buy stocks? Is there no age limit?

#137 Bottoms_Up on 01.29.13 at 11:01 am

Garth, your words I think should be clarified here:

“Of course, it protects the lenders, which means they can give tons of money to people too useless, lazy, juvenile or unfocused to save,…”

Sure, some people might be too useless, lazy, juvenile or unfocused to save, and although you didn’t quantify how many people fall into this category, I would think it pales in comparison to those that actual just plain can’t afford to buy a house because they are so out of reach according to the historical norm of housing prices.

Picture yourself as a young 20-something, making $45,000 (take home pay around $2800/mo). In order for this individual to buy a $250,000 condo, they need to come up with at least $12,500.

So, how long does it take to save that amount money, while, for example, trying to pay off your student debt ($500/mo?), car loan ($300/mo), rent ($700/mo), food ($400/mo), utilities/cable ($150/mo), insurance ($120/mo), misc ($200)?

At best, this individual can save $500/mo, IF they scrimp and save, don’t have a partner or much of a life. So, 2 years later they’ve managed to scrounge up a measly 5% downpayment BUT guess what? Over the past decade the market has been increasing faster than they can save, thus now their condo is $300,000 and they need another 1/2 of savings to make that downpayment.

Seriously, put yourself in the shoes of the young today. Should it take 10-15 years to save up to buy a house? Is this what the boomers did?

A house is not a right. — Garth

#138 Eaglebay - Parksville on 01.29.13 at 11:03 am

#45 Kaganovich on 01.29.13 at 12:35 am

The “big” rating agencies were all over the sub-prime mortgage derivatives.
They rated them AAA++.
What do they know.
CMHC will repay some bad mortgage loans with the money earned from the insurance premiums.

#139 The Prophet Elijah on 01.29.13 at 11:09 am

Something very interesting about brother Carney, and Canada’s “strong” economic kept it together:

As Mark Carney steps aside from his role at the Bank of Canada to undertake all manner of easy money in the UK, we thought a reflection on the ‘stealth’ QE that he has been engaged with, very much under the radar, in the US’ neighbor-to-the-north was worthwhile. It seems quietly and with little aplomb, Carney’s BoC has grown its balance sheet by over 21% YoY – the most since 2009. If that was not enough to make someone nervous, the quantity of Canadian government bonds on the BoC’s balance sheet has grown at a remarkable 46% YoY! All of this has taken place during a time when ‘supposedly’ the Canadian economy has been reasonably strong and foreign demand for debt high. With Canada’s CAD267bn debt due in 2013, we suspect this ‘stealth’ QE will continue to rise.

The Bank of Canada’s balance-sheet has grown at over 21% YoY…

http://www.zerohedge.com/news/2013-01-28/mark-carney-leaves-canada-stealth-qe-rising-fastest-pace-2009

#140 Eaglebay - Parksville on 01.29.13 at 11:13 am

#53 Nostradamus Le Mad Vlad on 01.29.13 at 12:44 am

Doomer in BOLD.
Do you sleep at night?
Negativism will ruin your health.
How’s Fukushima by the way or did you already forgot?

#141 CalgaryRocks on 01.29.13 at 11:15 am

Kristi should invest in herself including eating right and keeping a hard body. Overtime she will get older however those nurses that her hubby works with will only get younger. Lol

#142 White Rock Mom on 01.29.13 at 11:17 am

Rating agencies are always late. Look at how useful they were during the financial crisis.
Canadian banks are the darling stock of Canadians. However, they are a black hole of interest rate swaps and over-the-counter options that analysts don’t understand.

#143 live within your means on 01.29.13 at 11:28 am

#71 Z on 01.29.13 at 1:22 am
….summer road trips with your pooch in the side car of your Harley :)
…………………..

Don’t think Garth has a side car. Hubby bought an old BMW with a side car last fall. Said he’d have to get another dog or a mistress. Get a mistress, I said. As much as I love dogs, they’re no longer fit with our life style.

Re Porter – flew to Mtl last summer with them & was very pleased – so much better than AC. One year we were taking a flight to Mtl for a weekend with AC. They kept announcing numerous delays but that we’d fly out. Then said no & blamed it on the weather which was totally false. Asked people to go home and return in the am. As DH & I had a few drinks at the bar we wouldn’t drive. I pressured them into putting us up at a nearby hotel where they put up others from connecting flights.

Several years ago our plane in Frankfurt was delayed from early am to midnight – problem with a part & had to have another flown in. Airline put us up at the Steigenburger Airport hotel. Hotel had a hot buffet ready for passengers. Gorgeous rooms, but unfortunately had very little time to enjoy it. We had be in lobby by 6 am next morning. Boxed breakfasts were awaiting us in the lobby, to be eaten on the way to the Airport. Better safe than sorry.
…………..

Kristi – You made the right choice asking for help. Ignore the many negative comments from the wingnuts on this blog. You’re young enough to learn and build a portfolio as per Garth’s advice on this blog. Better yet, get a fee based advisor, if possible, rather than an Mutual Fund salesperson or TNL@TB, or friends’ recommendations. We made that mistake many years ago.

Disclosure – Garth is our advisor.

#144 bgs906 on 01.29.13 at 11:33 am

Hi Kristi, there is ONE book, of the close to a hundred that I have read that you MUST read……

“The Millionaire Teacher” by Andrew Hallam

This is a must read for you and you will get the basics from this one book…..really !!

#145 Ronaldo on 01.29.13 at 11:34 am

#126 Herb – agree totally.

#146 hangfire on 01.29.13 at 11:39 am

After being caught with their pants on fire over the mortgage bundling fiasco…ratings agencies have become knee jerk reactionairies to whatever hits the headlines……they still don’t seem to be able to do any actual accountancy of merit. In the case of RY, TD and BNS who get a signifigantly larger percentage of their revenue from non Canadian sources the threat of a downgrade rings rather hollow in the investment community……and as counter intuitive as it would seem to a mainstreet denizen…..bank stocks actually rose after the news…..I was one of those many who were buying….based on fundamentals….TD Ameritrade and Royals capture of regional markets in the US…BNS expanding aggressively in SA, Central Am and Asia are all reasons why CDN bnk stocks are just fine….thank you. In fact we are in historical nosebleed territory for share prices and should see some delicious stock splits within the new year.

Don’t get your financial advice from the newspapers guys…c’mon…..if investing was easy…we’d all be billionaires.

Meanwhile..blamining the victim over shoddy engineering and city inspection regulations hits the already beleagered homeowner with the imposition of higher fee’s for ownership.

http://www.vancouversun.com/business/Muddled+legislation+condo+depreciation+reports+causing/7884991/story.html#

Does no one realize it was the city planner/inspector/architect/engineers fault for the leaky condo debacle…..don’t blame the worker or the homeowner…go to where the real enemy lives in the shadows…..point your finger at the civil servants who do no work for what they recieve.

#147 refinow on 01.29.13 at 11:50 am

Hard to measure the calgary friend’s investment performance. For all she knows it was full of Apple Stock and she has got this months statement yet.

Or She recently inherited $225,000. Or maybe she also married a Dr too…

#148 Mike on 01.29.13 at 11:53 am

Kristi

If you don’t understand how the stock market works, there is a plethora of sites you can use to understand how it works. For me to explain here would occupy several pages worth of content; just use google for such general questions.

Since you’re still young, you have time to steer the ship in the right direction. The first thing, as Mr Turner has bleated on about, is to diversify. You do this by distributing your savings into several etfs that provide exposure to markets in North America and the rest of the world. You should also put some money in preferred share etf’s. Some examples; XIU (covers the TSX 60; for the canadian market), CPD (This is a preferred share ETF), XEM (Emerging Markets), XSP (S&P 500 ETF), and XIN (covers European, Australian and others). Since you have a total of $25,000 ($15,000 RRSP and $10,000 TFSA). Put $5000 in each of the above, and in the mean time, try to learn about how the stock market works. By the way, ETF’s are just groups of stocks with low management fees (The same as mutual funds, except with lower fees and they don’t have “strategies” to unsuccessfully beat the market). Continue to save 10% of your take home pay (along with your husband) and max out your TFSA before you continue contributing to your RRSP’s, unless you are in the above 40% tax bracket.

Continue investing in the ETF’s above. Don’t split every contribution to each of the 5 ETF’s every month. Put every contribution to one single ETF and alternate each month to equalize.

I’m suprised you had so few helpful comments. Not to worry, continue with this strategy, and use the time to learn as much as you can about the stock market. These 5 ETF’s are not only a good starting point, but a fairly good long-term investment. You can continue with this strategy, or develop it as you develop your investment knowledge.

All the best

#149 Eaglebay - Parksville on 01.29.13 at 12:03 pm

#125 CrowdedElevatorfartz on 01.29.13 at 9:42 am
“That poor poor girl….. pulling in a Nurses salary and married to a doctor….ski trips to banff….The horror.

I cant type anymore …I’m tearing up.

that poor poor girl.”
_____________________

Your mind matches your name.
No wonder you’re so down on SNC-Lavalin.
Do something with yourself, jealous.

#150 Daisy Mae on 01.29.13 at 12:08 pm

Kristi, you can’t do it yourself. Don’t even try. Get in touch with Garth. Do it. Now.

#151 Dr. Hoof Hearted on 01.29.13 at 12:12 pm

Dr Wayne

We’ve got two gargantuan a$$holes here who have not taken the venerable Mr. Turner’s request to heart to cease and desist the infantile compulsion to type FIRST, as a symbol of masculinity and supremacy (in their own minds) …

===================================

The implication is you have a secret desire/goal to be “behind”.

This can be an actively or passively acheived. classic signs are watching ” The View ” ..”Martha Stewart”,and subscribing to any Oprah Magazine , and a complete Justin Beiber collection.

Being “first” is a sign of cunning, intellect, self confidence, burning Justin Beiber CD’s , y’know stuff the babes just love.

#152 Doug in London on 01.29.13 at 12:18 pm

So, if a lot of house owners can’t make payments the CMHC will compensate lenders for losses and we the taxpayers get to foot the bill. Normally I would get mad as hell about such a ripoff, but instead have a better idea. It makes much more sense to buy bank shares or bank share ETF’s (regular or preferred) and get back some of the money you’ve paid out to the benevolent government in the form of dividends. See, I’ve been paying attention and, believe it or not, actually learning something from this sad blog!

I should mention that, like Kristi, I didn’t know much about investing in stocks at age 27 either. One difference, however, is in those days (late 1980’s) GIC’s, Canada Savings Bonds, or money market funds actually paid a respectable amount of interest, unlike the paltry amount these days.

#153 lucyj on 01.29.13 at 12:18 pm

Congratulations Kristi, you are young, married, employed and are starting to think and ask questions about finances. You will recieve lots of advice, mostly from people with no knowlege of what they are talking about, or some with big ego’s.(2 bit tycoons) Do some research, buy only what you understand and are comfortable with. Patient money, you will not get rich overnight but you are still young. Good luck.

#154 Dupcheck on 01.29.13 at 12:21 pm

CHMC enforces how capitalist and communist our country’s government is. Two faced government. Face one shown to the people is communist we are all in together, fine and dandy, carry each other, help each other. Face two, capitalist, partying it up with the banks, ridiculing the people they just screwed. This is who the real gov of Canada is. A wolf in sheep clothing. Uses our niceness to their advantage. The worst part is we know this is going on and we do nothing about it. That is a shame….ohhhh what can we do!!!!!!!! ohhhhh

#155 Steve M on 01.29.13 at 12:39 pm

You cannot get $250000 in RETURNS on your investments by 27 years old over 4 years without either having rich family, a rich spouse, not going to school, lying, stealing, investing in a house during a real estate bubble, or gambling during some unique or unpredictable one-time rally. I think it’s irresponsible to post these types of things.

#156 SRV on 01.29.13 at 12:43 pm

Kristi,

A 27 year old nurse… married to a doctor… ski vacations in Banff (great place)… dinning out with several glasses of “whine!”

My advice… cry me a river!

#157 Westcdn on 01.29.13 at 1:02 pm

The article in Zero Hedge regarding Canada’s stealth QE has me fuming. Is Carney a two faced lying bastard? -judge for yourself. I have attached a few quotes that save me typing.
“It blows my mind that this has received zero airtime from the Canadian media. I did a back of the envelop calculation using the Nominal Bond Results http://www.bankofcanada.ca/markets/government-securities-auctions/?page_… In terms of gross issuance it looks like Carney’s been about 30% of the Canadian Government Bond Market since the BoC’s holdings began rising in Jan, 2011.”
I looked at the Bank of Canada Holdings tab which shows 75$B of government bills and bonds held as of Jan 23, 2013. This amount is separate from the 2008/2009 Canadian bank bailouts.
“The banks were actually “bailed out” to the tune of $125 billion just before and after the 2008 election — in the form of a massive purchase of questionable mortgages and other “rotten paper,” in the words of one economist, held by them. This was done through the Canada Mortgage and Housing Corporation, a federal agency. The taxpayer is now on the hook for these mortgages, 40 per cent of which are considered at risk, with more to come if interest rates rise and the economy dips again…. The prime minister described as “not a bailout” but a “market transaction”.”
I want an explanation from the Bank of Canada of what is going on here. As far as I am concerned, this is QE designed to keep interest rates down. I watched enough televised conferences to know F jumps when the Carney barks. How the hell does the Carney tell us interest rates must rise when he is engaged in QE? I don’t want to hear any BS about why I can’t handle the truth. I can speculate – it is all about deflating real estate slowly. The following quote sums up my feeling right now.
The “Carney has accomplished nothing here, and will accomplish even less across the pond. “Evaporating velocity” Fucking pinhead. The best thing that Britain could do, is to punt that fucking Keynesian to France.”
I am just a little PO’d at the moment. (thank god I didn’t post the rant I drafted last night)

#158 tkid on 01.29.13 at 1:05 pm

Kristi,

http://www.amazon.ca/s?_encoding=UTF8&field-author=Gail%20Vaz-Oxlade&search-alias=books-ca

Gail Vaz-Oxlade’s books might interest you. I’ve posted the link to the amazon site, but the library should have copies, or request an inter-library loan if they don’t.

#159 charles on 01.29.13 at 1:12 pm

Dear Christie (Chris?),
Hurry and load up on paper investments. Your brokerage house can then use your equity shares to short your investments. That is how they make their money so be sure to take care of them. Oh and dont forget the bonds, I am sure the issuing agencies are good for it, they just want to share the wealth.
Do not under any circumstances transfer your financial assets into precious metals. You will be the object of ridicule and left behind as your hot friends continue to pile up said paper. You can consider inflation and the ongoing global currency wars a handicap like in golf as your returns pour into your account.
Hope your patients are not to great of an incovenience to collecting your civil service paycheck.

#160 dosouth on 01.29.13 at 1:19 pm

#54 – Not 1st….Garth, with all due respect, you are claiming to be better informed than Moody’s???
______

Need a little reminder of who Moody’s is and what they do?

http://www.thefinaledition.com/article/un-jailed-americans/page-7.html

#161 calgary_rip_off on 01.29.13 at 1:28 pm

Lets just say I work in some capacity in the medical field in Calgary. The system is choked. Many of the managers are scrambling to figure out how to cut costs as the price of oil isnt what was forecast. And the doctors are without contract. Many of them are seriously nervous about cuts into their income when they are on a fee for service basis. The whole city is on a knife edge due to these oil rich goons that inflated the cost of living to be double what it should be. And now alison redford is about to be lynched.

If this tart is married to a doctor she just needs to go along for the ride because doctors are smart. They can figure out how to get income somehow. So she might as well buy a big house, get all decked and live the high life. Or she can rent and deal with an idiot landlord. Any way she looks at it the reality is she will have to deal with some idiot some of the time, either the bank or an actual person.

Im not sure what this girl is worried about. Remember the snake in the medical sign. There is a reason for that snake in medicine, as its all about the money, dont let anyone ever say otherwise because there wouldnt be miles and miles of queues with patients waiting years for necessary procedures otherwise.

Anyone smart in medicine wouldnt put up with the crap if there werent big bucks in it. I know I wouldnt stick around.

#162 Old Man on 01.29.13 at 1:36 pm

There was many a time I took the party train on a Friday night out of Union Station in Toronto heading for Montreal to visit my parents years ago, and got off at the Dorval stop to meet my parents for a quick drive to Pointe Claire. Oh this was a party for many hours like none other, and one night my dad said who is the babe on your arm? I said have no idea, but she is a keeper, and my mom was very upset by it all. :)

#163 Adam on 01.29.13 at 1:37 pm

#27 Mark

————

CMHC has billions of dollars of cash to burn through – I’m think I heard the number $12 billion from somewhere – before it needs to get bailed out.

Without a major shock to employment, I can’t foresee a foreclosure crisis in Canada that results in $12 billion in foreclosures.

I don’t think anybody is going to have bail out CMHC.

#164 dosouth on 01.29.13 at 1:37 pm

#93 futureexpatriate on 01.29.13 at 4:00 am

Then there’s the quick way for hot girls to riches: Divorce husband 1. Marry husband 2. Divorce husband 2. Marry husband 3. Divorce husband……
_______________

Well I had to bite at this one. My ex has gone through her 3rd husband (Dr. @ 55) She is set for life. Got rid of her 27 years ago. Waited and raised our daughter. Married a lovely woman who made as much as me and was as well (better educated). Daughter hated math and money. Wife tutored her through Grade 10-12 math. Still didn’t hit the mark….until now where at 28 she is still single – (marry for money love you can find anywhere)

Promoted in December to Branch manager at a TD Branch in Calgary. Youngest female branch manager in the prairie region. We take a bit of credit but she’s done the work.

Doctor, lawyer, blue collar worker, when she is ready to marry it will be because she is ready and hopefully has learnt from her bio-mom – has money and still unhappy.

#165 Editor on 01.29.13 at 1:50 pm

It’s late in the cycle and no one will see this, but today’s G&M housing story headlines are the opposite of what we used to see:

Toronto penthouse lingers on market until price cut
Price cut on Willowdale home boosts interest
Cut-price deal helps move west Toronto home
Brockton Village semi sells after price cut

#166 Frank le skank on 01.29.13 at 1:50 pm

#148 Mike on 01.29.13 at 11:53 am
Great post but one question. Wouldn’t a monthly infusion of cash into these ETF cost a crap load in commission fees?

#167 all_we_need_is_mortgage on 01.29.13 at 2:02 pm

#134 Toronto_CA
__________________________________
That’s interesting, thanks for the link.

Tiff Macklem, deputy governor of the Bank of Canada, acknowledged as much in January when he noted that although low interest rates had stoked household spending, “this growth model is now reaching its limits.” He spoke of a need to “rotate our growth so it is less reliant on credit-financed household spending and more geared to exports, investment and innovation.” … that’ s a strategic observation… that’s the first time when somebody from the top finance officials acknowledges that the current economic model has been exhausted… very strong statement… but what is next? Is there an alternative model which will provide economic growth based on “exports, investment and innovation”? What might it take to implement a new model on a country scale?

#168 Chris on 01.29.13 at 2:05 pm

Looks to me like Garth has just been plain wrong about real estate. Waiting for the meaninful correction for years according to him. Okay so the thing correct 15% eventually after years of advancement which still works out to be him being wrong. Even admitted he was wrong about last year. And unfortunately will be hard pressed to see even a 15% retracement.

This is no B.S. article here:

http://www.theglobeandmail.com/report-on-business/economy/housing/crucial-bit-of-missing-information-may-be-driving-canadian-home-prices/article7935464/?page=1

They don’t even have the numbers on the foreigners buying here and I just don’t see that abating. Not enough to bring about hard declines. Major city centers went into orbit and even now admits after years of extensive gains that the city center of Toronto will not decline much.

Been hearing about interest rate increases for years now. Won’t be enough to make a difference. Sure some Canadian are indebted to buy a home competing with foreign money and cheap interest rates. Not going to change much going forward I’m afraid.

Wrong, wrong, wrong.

Guess you don’t live in the Lower Mainland or have a condo in Calgary to sell. Every market has its own rhythm and momentum, but all will be impacted. BTW, foreign money is the straw man, not the cause. — Garth

#169 Harvard Grad on 01.29.13 at 2:06 pm

I always followed Garth’s reasoning on the banking sector – but I do want to add my 2 cents –

So, if 10% of homeowners reneg on their mortgage – it will be CMHC on the hook for the difference – the banks will be covered. However, that source of income just dried up – the bank will only be able collect on the actual loan – interest is now a non-issue.

My belief is – if enough bad loans starting hurting CMCH’s bottom line – I bet a million bucks the government will be looking at loan applications very closely – they will finds plenty of faults on why the banks even gave the loan to start with – and there is some type of clause where if the banks drop the ball on thoroughly reviewing each application – it won’t be CMHC on the hook –

A very good buddy – told me how he kept pressing the banks to give him a loan back in 2003 – his income verification was “doctored” and they finally approved him – guess who holds the bag when he defaults –

And if people begin to struggle with their mortgage payments because rates have risen – it’s a fact that most will default on cc or loans that are unsecured before they default on the mortgage – hit number 2 to the banks..

I like what they offer – but I think we feel they have armour around them – and dents will show!!

#170 bucky on 01.29.13 at 2:17 pm

Garth,

CHMC has $580billion total mortages, and just $12billion in capital.

So if the property values went down 20% is the CHMC bankrupt?

#171 The Prophet Elijah on 01.29.13 at 2:22 pm

#147 refinow on 01.29.13 at 11:50 am Hard to measure the calgary friend’s investment performance. For all she knows it was full of Apple Stock and she has got this months statement yet.

Or She recently inherited $225,000. Or maybe she also married a Dr too…
———————————————————
Or she just lied or exaggerated it, people do that when it comes to money ya know, including they’re salaries. No one wants to feel small.

#172 Humpty Dumpty on 01.29.13 at 2:27 pm

Do you have a life vest or a parachute for my friend next to me ….

CW….

Read from page 65. Posted this last yr…..

onhttp://www.shadowstats.com/article/no-414-hyperinflation-special-report-2012.pdf

Jess, Vlad
Dollar Sell Off Within 4 Months-John Williams

http://www.youtube.com/watch?v=O8kBDUw45uY&feature=player_embedded

#173 richmond bc on 01.29.13 at 2:27 pm

“But I don’t know what to do!” whispers Kristi with her big brown moist eyes. She takes a piece of blonde locks and twists it into her fingers. “Garth, you are so much smarter than me. I need help.” as she looks down in a slightly detectable but polished pout.
“Don’t worry Kristi, I will make sure your future is well taken care of. Everyone, we need to help this unfortunate girl.” As Superhero Garth begins to plow through miles of paperwork, Kristi gives him a wink and turns towards the door. “But, where are you going? I thought we were going to pull an all-nighter?”
“Oh no Garth. That’s you. Pretty girls who marry doctors don’t do that. I am going out for a massage, shopping, then dinner. It takes a lot of money and effort to maintain this pout Garth.” Her laughter echos through the emptiness in the building as she leaves.

#174 Dr. WAYNE on 01.29.13 at 2:29 pm

With ‘their’ earning potential, really, the only thing to worry about is … does she have a pre-nup?

#175 Dr. WAYNE on 01.29.13 at 2:33 pm

#151 Dr. Hoof Hearted on 01.29.13 at 12:12 pm

Dr Wayne

Being “first” is a sign of cunning, intellect, self confidence, burning Justin Beiber CD’s , y’know stuff the babes just love.

====================

FIRST … what medications are you on to counter your delusions … increase the dosage.

SECOND … you’re so full of sh++ your eyes a deep brown.

#176 Old Man on 01.29.13 at 2:35 pm

#162 Old Man – I must tell you the rest of the story as my parents both knew the street, and were so cool in life, as knew so much about life from their youth, as now they were part of the so-called 1%. My mom gave the girl a coffee, and said ok young lady name, phone number, and address of your parents.

They lived in Westmount so both moms talked, and it was agreed that the not sober daughter would stay overnight in Pointe Claire, and in the morning all would go for a nice breakfast for a few laughs about this all, as the mom in Westmount said love is in the air, so we need to check this out, as your son and my daughter both reside in Toronto.

#177 Patiently Waiting on 01.29.13 at 2:38 pm

Fraser Valley Real Estate Board morning stats continue to trend lower with year over year sales down 31%.
—————————————————————-

FVREB STATS – as of January 29, 2013
19 of 22 Working Days
JANUARY 2013 Listings 2256 Sales 481
DECEMBER 2012 Listings 871 Sales 662
JANUARY 2012 Listings 2521 Sales 700

pw

#178 DM in C on 01.29.13 at 2:48 pm

Old Man;

You are living up to your moniker — WHAT are you talking about, and how does it relate to the blog topics?

Yammering on and on about nothing….. they should restrict your internet access at the home.

#179 wes coast on 01.29.13 at 2:52 pm

As Garth has said – get a paid advisor. Envy is dangerous. Learn what you can about investing but its more complicated then ever. 70 percent of stock trades are now made by computers running algorythms that both react to and create movements in stock prices. Money – the very benchmark of value – is manipulated by interest rate manipulation and quantitative easing. Your friend would have been 16 in 2001. If she has 250K 12 yrs later she would have started out with a good chunk of change. So saving what you make via investments is the key – she didn’t trade her way to 250k from nothing. Panic. Envy. Greed. Fear. All useless emotions. Learn. Seek suitable advice. DIVERSIFY risk. Accept losses as a learning opportunity. Never give up.

#180 Frank le skank on 01.29.13 at 3:01 pm

Totally off topic but when does Real Estate roundtable 2013 come out?

We do battle tomorrow. I imagine it will be published shortly thereafter. — Garth

#181 Puzzled Redneck on 01.29.13 at 3:22 pm

Wow. Eat your hearts out, guys. The envy and misogyny on display here is really disgusting – and I’m a divorcee that has to pay his ex half.

#182 HD on 01.29.13 at 3:28 pm

#166 Frank le skank on 01.29.13 at 1:50 pm
#148 Mike on 01.29.13 at 11:53 am
Great post but one question. Wouldn’t a monthly infusion of cash into these ETF cost a crap load in commission fees?

—————————————–

Very good point.

Unless you are dealing with an institution that allows free trades, it wouldn’t be cost effective to regular make small investments.

The best way to do it would be to rebalance once or twice a year or/and set up a DRIP.

Before you set up a DRIP, you have to make sure the holding generates enough income to purchase at least 1 full share.

You will find useful tips about this in this entry:

http://canadiancouchpotato.com/2012/12/31/ask-the-spud-do-i-have-enough-for-a-drip/

Hope that helps.

Best,

HD

#183 somecatchphrase on 01.29.13 at 3:29 pm

As medical professionals, Kristi and her husband should seriously consider moving to the United States for much lower taxes, much lower cost of living, and better weather.

Tax avoidance is just as important to building wealth as saving and investing.

Taking your state-subsidized education here then fleeing is not so much tax avoidance as unethical. — Garth

#184 :):( Ying Yang on 01.29.13 at 3:31 pm

#55 Nostradamus Le Mad Vlad on 01.29.13 at 12:46 am

*
#129 CrowdedElevatorfartz on 01.26.13 at 11:03 am — “Oh and news flash! 911 was done by muslim highjackers NOT the US govt.”
Whether or not Sept. 11 was an inside job or not remains unknown. ObL died of kidney failure prior to the event, so he has become a very convenient scapegoat for the WH and Pentagon. See This, 6:10 clip, this, and this.

Sorry Vlad read this link and had to pipe in, as an Engineer I have some background information on how structural steel functions.
Thermite creates at least 60 kg of molten iron for every ton of steel heated to melting temperature (this figure assumes 100% efficiency). Therefore if thermite contributed to a collapse, there would be large amounts of molten steel, and thus huge puddles and blobs afterward. There are none.
And that 60 kg of molten iron require 120 kg of thermite. That my friend is an awfully large volume of thermite when you consider the flow Steven Jones calls molten iron. If that flow was, based on the density and the volume we saw we are looking at about 16,000 lbs. of molten iron. That requires 32,000 lbs. of thermite. Anybody care to tell me what flowerpot that was hidden in…
NIST (National Institute of Standard and Technology) researchers estimated that 0.13 lbs of thermite would have been required to heat 1 lb of WTC steel to 700 degrees Celsius (the temperature at which steel weakens substantially).

Don’t you see a major problem with this fact? Each tower weighs 250,000 tons. I’ll be generous and say that only 100,000 tons of the building was the structural steel (and that’s probably extremely generous). So if you heated all of that, you’d need 13,000 tons of thermite, or 26 million pounds of thermite. A tenth of that is still 2.6 million pounds. A hundredth, 260,000 pounds. How on earth can you smuggle all of that into a building, or plant all of that secretly in a weekend or even a few weeks?

BTW Steven Jones is a prof at Brigham Young University (often referred to as BYU, or sometimes just the Y) is a private university located in Provo, Utah. It is owned and operated by The Church of Jesus Christ of Latter-day Saints (LDS Church) The same place where Joseph Smith founded the Mormon religion after his drug induced visits by an angel named Moroni told him to become a polygamist. If you want to follow Steven Jones rants please be my guest. Just know where he hails from.
Please call the mothership!

#185 HCIMMM? on 01.29.13 at 3:32 pm

#45 Kaganovich

oh… you need some “smoking man” spirit my friend.

look at the big picture, and I will just say two things

1- the government is the one getting the biggest cut in this cake (they make a lot of money with this crazy real estate industry, and they need ’cause they are soooo inefficient)

2- we should have referendums for more important things in Canada…

but we all appreciate your good intentions. that’s the right way a country should be guided, by the people

#186 jess on 01.29.13 at 3:40 pm

financial literacy

itpaystoknow.gc.ca/flm
Financial Consumer Agency of Canada

http://www.fcac-acfc.gc.ca/eng/FLM/index-eng.asp

http://www.theccfl.ca/home.aspx

http://www.investopedia.com/categories/acronyms.asp#axzz2JOXN7tvu

http://www.investopedia.com/dictionary/#axzz2JOXN7tvu

#187 Seriously? on 01.29.13 at 3:48 pm

G.T.
Point of fact. You cannot, never could and never will be able to “Careen” into a runway, off a mountain side or into a brick wall.

You can however “Career” into the runway surface, off a cliff or into the arms of a hot nurse.

The modern use of the term “Careen” is considered to be sexy when describing a high speed disaster.

The use and meaning of the term “careen” is in fact ancient, marine based and misunderstood.

The word is used solely to describe the maintenance of wood hulled sailing ships of yesterday. Previous to the invention of metal construction hulls and steam power, sailing ships depended on the wind and the currents to get from A to B. . When crossing the line or laid up these ships were sources of attraction for sea life. Seaweed and other organisms would attach themselves to the hull and decrease the sailing power and characteristics of the ship.

Occasionally the ship would be “heaved down” to remove the growth form the hull. This process was called “careening the ship” or cleaning the crap off of the bottom.

Now that I think of it, perhaps after almost “careering” into the runway a person may in fact need to “careen” their own bottom “to clean the crap off of it”.

Seriously

Seriously. You bet. — Garth

#188 WhiteKat on 01.29.13 at 4:09 pm

@ SomeCatchPhrase re: ‘ Kristi and her husband should seriously consider moving to the United States for much lower taxes’

They should only consider moving to the US if they bring all their Canadian assets with them, and only if they never plan on returning to Canada. Otherwise they will forever be reporting and penalized on all of their ‘foreign’ accounts (left in Canada), in addition to filing annual US tax returns. This is because the USA is the only country in the world (except Eritria) that taxes US income earned world wide regardless where in the world you live and earn said income. All other countries tax based on residency.

Canada (like most countries) doesn’t care about your income once you move to the USA as long as your income is not earned in Canada. An American moving to Canada continues to be taxed on his Canadian earned (and already taxed) income. Yes their are tax treaties to minimize this, but not completely. For example captial gains on a house sold in Canada is still taxable in the USA if US considers you a ‘US person (aka citizen, green card holder, etc)

Once Kristi and her husband are green card holders or US citizens, they are US tax payers for life (unless they go through hoops to get rid of their status as ‘US persons’).

#189 Holy Crap Wheres the Tylenol on 01.29.13 at 4:12 pm

Ouch again, RIMM stock sure is fun isn’t it kids. Oh well as I say go big or go home. I’m all in lets see how this pans out Wednesday. Either way I’ve made some profit off these guys. Surfs up dude! Lets catch a wave and your sitting on top of the world, sure would be nice to ride it out all the way though! Cowabunga! (Only readers over 60 will get that term)
http://www.marketwatch.com/investing/stock/rimm

http://www.youtube.com/watch?v=Nv85tBzA6Oc

#190 Kaganovich on 01.29.13 at 4:16 pm

#185 HCIMMM?

I am not quite picking up what you are getting at with your reply. Do you mean the federal government or municipal governments? Property taxes or capital gain taxes or what. All I am pointing out is that not just taxpayers but bond and shareholders should share in the consequences of the housing fallout. To me this is very important issue that should have input from Canadian citizens in order to prevent the possibility of extreme debt deflation from an overtaxed majority paying down a federal debt incurred in more bank bailouts via CMHC insuring bad mortgages (odious debt perhaps). But yeah, I agree that any system claiming to be even mildly democratic should be guided by the people.

#191 jess on 01.29.13 at 4:23 pm

Dell’s Multiple Restructurings
the paper chase
http://taxanalysts.com/www/features.nsf/Articles/D8A55EFE6CF17A3885257B01006D4565?OpenDocument

#192 HCIMMM? on 01.29.13 at 4:29 pm

Kristi:

You have received a lot of useful advice here, but guess what? swallow your pride and ask that friend for advice (the one that made 250K in the last 4 years). If she really cares about you, she will give you good advice. Don’t forget she already has a few years of experience in the field…

Then, be nice and drop some knowledge here too.

Good luck (and don’t gamble your money, get a good advisor)

#193 Holy Crap Wheres the Tylenol on 01.29.13 at 4:33 pm

My father bought me my first stock back in the early 1960’s. It was a good learning process, he showed me how to pick, when to purchase and when to sell. Back in his day no long and short it was pick a stock and watch how it performed in the markets. No computers we had to wait for the newspaper every night or listen to the radio. I did the gold thing with mines and did get caught back in the day with some silver (Dam Hunt Bros). Anyway I would agree with all of you purporting that our schooling system should be teaching children how to firstly manage money, and secondly to invest it properly. How to analyze risk factors and what can mitigate them. So many young ones live from day to day on 100% of their wages, not investing or saving at all. Good lord! I think there is a new position in the school system there for all of those out of work CFA’s.
OK so now little Johnny if you have two Loonies and little Suzy has two Loonies then how can you make those Loonies grow? Anyone know class? Bobby? Billy? Cathy? Tommy? Garth?

#194 Old Man on 01.29.13 at 4:47 pm

#178 DM in C: in case you missed it all Garth talked about Dorval airport, and #88 talked about Dorval and Pointe Claire, so my comments took on an association within context as know them both well. Perhaps you live in Calgary, so cowboy saddle up and get with the flow – checkmate!

#195 Bottoms_Up on 01.29.13 at 4:48 pm

Kristi:

RRSP: something you put money in to if you make a lot right now, and stand to live on less (relatively speaking) in retirement. Given your financial situation, having and maxing out your RRSP is probably a good idea.

TFSA: something you use right now to avoid paying taxes on your investment gains.

Owning a Stock: a theoretical concept of “owning a company”. A stock, or owning a ‘share’ of the company really doesn’t mean that much, and the value of a ‘share’ is only derived by underlying fundamentals that people ascribe to the company (this includes things such as how much is paid out in dividends, the company’s earnings, the rate that those earnings are growing, the ‘book value’ of the company etc.). Owning a stock is like owning cash, each has value because people believe it has value but essentially they’re just pieces of paper.

#196 EIT on 01.29.13 at 4:51 pm

#154 Dupcheck on 01.29.13 at 12:21 pm

You are confused. Communism is a despotic system. Free-market capitalism on the other hand is the only ethical economic system. Your just angry because you think the government has torn up the social contract. But here’s the positive, your post is so silly and meaningless that Garth actually let it go through. He won’t let me post anything related to this type of topic, and I don’t blame him (just hope he doesn’t hate me ;)

#197 Blacksheep on 01.29.13 at 4:57 pm

:):( Ying Yang #184,

“Therefore if thermite contributed to a collapse, there would be large amounts of molten steel, and thus huge puddles and blobs afterward”

“There are none.”

http://www.youtube.com/watch?v=Cx33GuVsUtE

“Sorry Vlad read this link and had to pipe in, as an Engineer”

As a journeyman machinist of 25 years and machine shop owner, I deal with engineers on a daily basis.
The lack of real world, field experience displayed by many engineers, makes for terrible application of tolerances, wasting customers time and money, unnecessarily. Segments of the aircraft support industry is riddled with this.

Here is yet another example how ones knowledge of math (school) is to frequently, not enough to allow one to make, well rounded decisions. The indoctrination runs deep.

take care
Blacksheep

#198 Holy Crap Wheres the Tylenol on 01.29.13 at 5:23 pm

Holy Crap invest in pollution control equipment! Tons of money to be made in China! Yeeshhh….

http://www.zerohedge.com/news/2013-01-29/beijing-smog-and-after-pictures

#199 Aleksey on 01.29.13 at 5:25 pm

I beleive that Kristi is a fake. However, if she’s not then I have advise for her. Start thinking about family and stop worrying about money. Find a good advisor to manage your TFSA and RRSP, there are several good articles on this blog how to do that.

#200 Stickler on 01.29.13 at 5:36 pm

My advice,
get a fee based adviser. And take up the hobby of learning about investing, so you understand what is going on.

Also keep yourself nice & healthy, and save 20% of your income.

#201 Stickler on 01.29.13 at 5:48 pm

@ 184 :):( Ying Yang on 01.29.13 at 3:31 pm

“Therefore if thermite contributed to a collapse, there would be large amounts of molten steel, and thus huge puddles and blobs afterward. There are none.”

>> wrong…there was a large volume of molten flows.

#202 Stickler on 01.29.13 at 5:57 pm

@ Garth
“Taking your state-subsidized education here then fleeing is not so much tax avoidance as unethical. — Garth”

I agree with you 100%,

but man oh man they do it. I was on a plane to the US once, and next to me a group of 6 Canadian med students going to the US to interview…they were so jazzed on how much $ they were going to make in the USA and quite the F Canada attitude (because the $ was much lower in CDN). Nice.

#203 jess on 01.29.13 at 6:07 pm

Min Zhu, deputy managing director of the International Monetary Fund, also appearing on the panel, argued that the financial sector remained too big. While banks’ lending had been reined in since the crisis, he said, there had been “zero deleveraging” of derivatives – the complex bets banks make with each other.

He said the “shadow banking” sector, which includes hedge funds and private equity firms, should not be allowed to slip beyond the tentacles of regulators.

“We’ve seen a lot of activity move away from the banks, to the capital markets,” Zhu said. “Both the banks and the shadow banks should have a proper regulatory framework to govern them.”

..”But Dimon insisted the burgeoning of complex financial products was just a reflection of modern society. “Finance is a critical part of how the economy functions,” he said. “If you’re in a barter economy, there are no financial assets. Once a society starts to save, there are financial assets, and you want there to be financial assets.”
http://www.guardian.co.uk/business/2013/jan/23/jp-morgan-jamie-dimon-banks-davos?INTCMP=ILCNETTXT3487
=================
PFI-deals, where local authorities buy a very complicated financial instrument to pay for, say, a hospital.
who really benefits (profits) from these complicated financial instruments?

PFI deals crippling the NHS with £1.5bn of handouts needed: PAC …www.telegraph.co.uk › Health › Health NewsYou +1’d this publicly. Undo
Oct 29, 2012 – Patients in every part of the country face having their NHS services merged, closed or moved to address the financial crisis, a scathing report

#204 Jen on 01.29.13 at 6:12 pm

Picking on Kristi above is actually a bit mean. Truth is, with $25,000 saved, she’s actually doing much, much better than most 27-year-olds I know.

#205 Dr. Hoof Hearted on 01.29.13 at 6:16 pm

#175 Dr. WAYNE on 01.29.13 at 2:33 pm

#151 Dr. Hoof Hearted on 01.29.13 at 12:12 pm

Dr Wayne

Being “first” is a sign of cunning, intellect, self confidence, burning Justin Beiber CD’s , y’know stuff the babes just love.

====================

FIRST … what medications are you on to counter your delusions … increase the dosage.

=================================

Just for the hell of it I tried it…..now All the Staff say I act like Wayne,……the Janitor …..who comes to work dressed up like a Dr. (or Nurse…depending on the lunar cycle).

#206 Bill Gable on 01.29.13 at 6:20 pm

Trudeau Airport – so scenic!

At least you are safe – man, I have had a few fun runs, but the latest in your flying career was a bit much for my tender innards.

To the point. The young ladies letter points to what I have maintained for years = we have to have a class in MONEY, at school.

This gal – a NURSE, so educated, didn’t understand interest rates? Freaking – HELLO?

This kind of stuff makes me glad you deal with the investors, Mr. Turner, I wouldn’t be able to keep my yap shut.

I mean, come on woman!

#207 :):( Ying Yang on 01.29.13 at 6:30 pm

#197 Blacksheep on 01.29.13 at 4:57 pm
:):( Ying Yang #184,

As a young man I worked in my father’s machine shop does the word Logan lathe mean anything to you?

#208 Dr. Hoof Hearted on 01.29.13 at 6:31 pm

We all know who did 9-11

Lots of good documentaries

Most 9/11 Commissioners Don’t Buy The Official Story, Why Do You?

http://www.youtube.com/watch?feature=player_embedded&v=GdqIzc4TZAY#!

#209 T5>myT4 on 01.29.13 at 6:43 pm

Dr. Ralph Cramdown

“There’s nothing we can teach you here that’ll have a bigger financial impact on your life than marrying the doctor in the first place.”

Well said Dr.

If I were her I would just focus on keeping fit to please the Doc. Oh wait I forgot, this is Canada and Divorcing him would probably be the best financial move she could make.

#210 Devore on 01.29.13 at 7:02 pm

#63 ApplePi

Some good pointers to books and web sites already in today’s blog. And this is a good point to. While savings are small, the goal is to increase the rate of saving and grow the pile. Much more important than returns. It’s easier to double savings to $20k than to double $10k in the market. Only once six digits are in sight and a habit of saving is established should you worry about investing seriously.

For now, reading and education. This takes time. Took me a good couple of years, although that was coupled with some significant personal changes too.

With both yours and the good doctor’s future income potential, financial advisers will be lining up at your door, even if you have little money today.

#211 Stickler on 01.29.13 at 7:14 pm

ah Yin Yang worked on a Logan lathe so he knows all about thermite and nano thermite. lol.

#212 Rand man on 01.29.13 at 7:16 pm

Lee # 48

I’m in Medellin! See ya when I see ya…weather is great here!

#213 etreamar on 01.29.13 at 7:17 pm

A suggestion for Kristi is to take the time to research and learn. Good decisions come from having knowledge. Books are a good place to start:
1. Learn what money is: “The Ascent of Money”
2. Learn about budgeting: “The Wealthy Barber”
3. Learn about the Market: “The Intelligent Investor”,”Random Walk Down Wall Street”, “Money Road”
4. Get a financially literate mentor that can guide your voyage into the financial jungle. Garth’s blog can be quite helpful too.

Knowing what money is, preparing, and understanding your options is a giant step in the right direction.

#214 Christopher Mewhort, EA on 01.29.13 at 7:30 pm

#188
I do not think you should pontificate about Canada/USA tax laws or strategies until you learn at least a little about the subject. Christopher Mewhort, EA

#215 Devore on 01.29.13 at 7:42 pm

#103 The real Kip

Royal Bank was not included on the list. A quick bit of research shows why. The credibility of Moody’s is pretty much zero.

How do they have zero credibility? Did they not have front row seats to this show 5 years ago?

RBC wasn’t downgraded, because, as you note, it already was, last June. RBC was singled out because it has exposure to instruments and markets other banks do not. This downgrade is great news for RBC, because it’s now not the only bank that has to eat a compressed spread. All the major Canadian banks are on the same footing again. It’s why their share price got a nice little bump.

#216 Dr. Hoof Hearted on 01.29.13 at 7:46 pm

To clarify the issue..unless you are a Civil Servant (aka the Cult of Entitlement) you are/will be screwed by the time you retire.

#217 Nostradamus Le Mad Vlad on 01.29.13 at 7:46 pm

#121 Smoking Man — “Yes it’s an I side job..” — +What is also interesting is on Sept. 10, the US$3 tri. went (unbelievably) missing.

Now, where or who could it have gone to? Is it possible that part of it went to the company that pre-loaded the explosives in the towers, which were kick-started by the planes crashing into them? Would Big Dick Cheney or Donald (mumbling) Rumsfeld have any idea? Things are becoming curiouser and curiouser, said Alice!

#172 Humpty Dumpty — Thanks for the link. As no one knows what tomorrow brings, all we can do is to improve and better our own lot in lives.

#184 :):( Ying Yang, #197 Blacksheep and #201 Stickler — Thx. for the info.

#193 Holy Crap Wheres the Tylenol — Great post. The way public education seems to be run, private schools may be a better out.
*
#140 EgoPutz – Schmucksville — “Do you sleep at night?” — Yes, I know it’s in bold, because I forgot a tag line in the html code. Fortunately, I caught my mistake and reposted it at #55, and hoped that Garth would delete the first one.

Obviously, you are the all-seeing (from a 360 degree view), all-knowing Deity who loves to point out others’ faults.

So tell all of us pre-pubescent bloggers here, as we wait in bated breath for your next pronouncement . . .

What is it like to be perfect, to not know what it’s like to make mistakes and learn from them? What is it like to criticize, to sit in judgment and call others out for their screw-ups? What is it like to be odG?

I am so glad I don’t have to live with an overbearing, bloated, fat but empty and useless ego like yours, so enjoy playing your foreskin, arrogant dickwad.

And my health? The heart is in tiptop shape (last ECG done a few years ago), I sleep very well and VERY comfortably at night. You?

#218 Blacksheep on 01.29.13 at 7:49 pm

:):( Ying Yang #207,

“As a young man I worked in my father’s machine shop”

You should have paid attention, you may have learned something useful in the real world. The official 911 tale is a running joke, amongst the Jobbing machinist community, being used thinking on their feet and problem solving.

take care
Blacksheep

#219 Devore on 01.29.13 at 7:54 pm

#150 Daisy Mae

Kristi, you can’t do it yourself. Don’t even try. Get in touch with Garth. Do it. Now.

Although some are clearly advising so, I don’t think that’s the point. If they are content with a comfortable middle-class lifestyle, and not keeping up with the Dr Joneses, they’re in their late 20s, so I assume student loans are paid off, and they are in a position to be putting away massive amounts of money towards savings. No point nickle and dimeing yourself; hire a professional.

That said, Kristi professes financial illiteracy typical of an average Canadian. Finances and financial planning are far too important in these days (long lifespans, broke governments) to either leave to chance through ignorance or to strangers through laziness. Having a grasp of the basics, understanding the financial press and happenings, and being able to ask the right questions will go a long way towards financial wellbeing (and sleeping well). If my vehicle, for example, was my lifeblood and critical to my income, I would want to know as much as I could learn about mechanics, so I could at least tell when someone’s feeding me BS, not so I could fix my own truck. No one’s expecting her to become a day trader or hedge fund manager. Just to become educated in this very important aspect of our lives. This stuff should really be taught in schools.

#220 Smoking Man on 01.29.13 at 8:05 pm

#208, Dr Hoof……. Lmao nice I like it.

We all know about 911, We all have an Idea who was behind it, but we dare not publicly state it. We know the ruthlessness of the men behind the shadows who planned and made it happen. Who cares.

That was nothing compared to what’s coming. The men at the controls of the machine did not see YouTube coming, they did not forsee that a huge portion of the population know what a false flag off is.

Spy service collect data on people that are against globalization, globalization makes working people poor in developed economy’s

DHS has just purchased 7million fully automatic assault riffles.

And millions of hallow point bullets…While pushing an agenda to disarm.

I believe they must have intelligence that the peasants are coming for the kings head.

Me I’m with the king, he has drones guided bombs that home in on your cell phone. He’s sees and hears in the dark. The only hope for the working man, his military goes rouge…..

Plus I can make money in any system. I have an eye for the obvious…

#221 Devore on 01.29.13 at 8:08 pm

#154 Dupcheck

Face two, capitalist, partying it up with the banks, ridiculing the people they just screwed.

You sure have a perverted idea of what “capitalist” means. It’s not “government partying it up with the banks”, for starters.

#222 Daisy Mae on 01.29.13 at 8:25 pm

#182 Doug in London: “One difference, however, is in those days (late 1980′s) GIC’s, Canada Savings Bonds, or money market funds actually paid a respectable amount of interest, unlike the paltry amount these days…”

*****************

Yes! I had a GIC in those days. RBC called me in for an interview. They were prepared to break the term I had…actually tried to talk me out of my precious GIC. Didn’t work!

#223 Little Saskatoon Disturber on 01.29.13 at 8:28 pm

What realturs really mean with the cliche phrases they puff out.
http://www.businessinsider.com/what-a-real-estate-agent-really-means-2013-1

#224 Daisy Mae on 01.29.13 at 8:31 pm

#174Dr. WAYNE: “With ‘their’ earning potential, really, the only thing to worry about is … does she have a pre-nup?”

*******************

Two kids…just starting out. Do they really NEED a pre-nup at this stage of the game? Subsequent marriages, of course…

We don’t need to get paranoid?

#225 SurreyGal on 01.29.13 at 8:50 pm

Kristi,

From my perspoective and especailly in this economy your choice of a home will make a lot of difference. I agree with many hear and Garth that real estate is not likely to be much of an investment for a while. In spite of my name here I am actually in the process of moving from this horrible suburb into the centre of a much smaller town and am really looking forward to it. So wherever you go try to live in the middle of the action and not in some suburban commuter hell that will take much more than it gives from you. Lots of smaller places in the BC interior and also smaller cities and towns in the prairies I have visited can give you the positive qualities in a hometown for less than the huge prices people are paying in Vancouver. I just hope we can sell our suburban two story before things really melt down because apart from the idea of owning real estate close to Vancouver I just can’t see why anyone would want to live here.

#226 kothar on 01.29.13 at 9:01 pm

Fortunately for her she is 27 so there is still time to find help like someone like garth .

#227 Vanman on 01.29.13 at 9:02 pm

Note to Kristi – by marrying a doctor, you’re in a unique position. Your job should be to ENSURE HE INVESTS IN NOTHING, its probably the best way to ensure he doesn’t lose all your (collective) money.

Short on funds for a new handbag or car? Send him back to work for a few days in a row.

Oh yeah, and hire out investing money. if you’re 27 and haven’t heard of inflation yet, the pony has left the stable for you.

#228 CrowdedElevatorfartz on 01.29.13 at 9:03 pm

@#140 and #149 Eaglebay-Parksville
JUST when I thought you were my bestest buddy (#140) you then turned about face and slagged me (#149) ….. Just no love in Mudville today. It’s th pouring rain in Parksville isnt it. Got ya down. I understand. Are there any elevators in Parksville, I’d love to visit. Spread the love as it were.

@#184 Ying Yang
Thanks for the explanation of how the entire “911 conspiracy ” is total Horse s##t.
Glad to know machinists like Blacksheepshagger are allowed to vote.
God help us all

#229 Mithan on 01.29.13 at 9:22 pm

Kristi represents about 98% of the Canadian population.

At least she cares enough now to want to learn.

#230 McLovin on 01.29.13 at 9:32 pm

I guess her friend bought 3x’s S&P long etf’s in March of 2009 on margin.

Good for her!

#231 CrowdedElevatorfartz on 01.29.13 at 9:32 pm

I have a theory !

This entire planet , with 6.5 billion people (including, unfortunately, a few conspiracy loons) is actually a subatomic particle orbiting Uranus !

Prove me wrong

#232 TurnerNation on 01.29.13 at 10:30 pm

hobbygirl, and how are those buttons coming along? We never heard. :-)

#233 will on 01.29.13 at 11:15 pm

Kristi, take the Canadian Securities Course from the Canadian Securities Institute. It’s not expensive. The course is a great launch to understanding what people are talking about.

#234 lookoutbelow on 01.30.13 at 12:48 am

Bank earnings will take a major hit, housing down and consumer fully loaded with record breaking debt not to mention almost zero Met Interest Margin. Maybe they can just keep jacking up the fees to make up for lost profits. Methinks not.

Just a comment on the Taxpayer funded CMHC insurance on that massive, high risk mortgage portfolio:

If the proverbial **it hits the fan due to a major drop in housing values and we see a spike in personal bankruptcies and therfore rising foreclosure activity, you can bet that the CMHC will be going through the mortgage documentation in fine detail and I am sure, will exercise their right, where appropriate, to “put back” the sloppy mortgages back to the Bank.

Besides do you really think that F and the Cons would be walking into the next Election telling Canadians that they are on the hook for Billions of Dollars in CMHC claims. No, No, No, they would rather let the Banks take the hit, after all re-election is all that matters to them.

#235 Mike on 01.30.13 at 2:23 am

#166 Frank le skank on 01.29.13 at 1:50 pm

“Great post but one question. Wouldn’t a monthly infusion of cash into these ETF cost a crap load in commission fees?”

Ya, you have a point. It also depends on how much you save, but making a trade every month could even be costly at $1000/month, even if it is in only 1 ETF at a time. You should probably accumulate 2-3 months worth of savings, then put it in one ETF, and alternate every 2-3 months. This would provide for a balance of low cost and lost opportunity. Waiting too long could hurt you more than fees though, so only investing 2 times a year may be costly in terms of opportunity cost.

#236 Renter's Revenge! on 01.30.13 at 12:07 pm

Another way to optimize costs is to initially invest your new funds in no-load low-MER index mutual funds (several of the big banks offer these), then switch over to lower-MER index ETFs once you accumulate enough funds to make paying the commission to buy the ETFs worth it. For your taxable account, you should also consider the tax implications of accruing capital gains every time you sell the index mutual funds to buy the index ETFs.

#237 Suburban Princess on 01.30.13 at 6:40 pm

Kristi, ANYBODY who bought into the markets 4 years ago (that’s 2009) is ahead today, so I don’t how much of that $250 000 is the result of “smart” vs. “lucky”. People don’t like to admit that they were just lucky.

#238 █ ♣ █ ANONYMOUS on 01.30.13 at 10:27 pm

Oh wait; she’s a doctor and you are a nurse, and she has more money and makes more money than you?

GOOD LUCK BUDDY!

She’s going to divorce your sorry A$$ once she finds herself a male doctor that she’s attracted to. You are just biding your time with her until she finds a bigger better deal.

Women are like that, and if you don’t understand that, you soon will.

If you have kids with her, that’s even worse, she will extract MASSIVE amounts of child support from you in the divorce settlement soon to follow.

I feel sorry for you buddy, should have gotten yourself a pet dog instead.

#239 Margaret on 02.01.13 at 12:14 am

Garth,be nice. This is probably just the sort of lady you’d want caring for you should you become infirm. We’re not all financial geniuses.

#240 C on 02.01.13 at 2:29 pm

..from bimbo to citizen in three easy steps… There IS hope after all :)