Obedience

OBEDIENCE modified

Earlier this week, in another fine example of why I’m no longer an obedient politician, I dissed a poster for bragging about living on air. Worse, it was a senior. Even worse, a woman. Sherry Danson told us about having a paid-for house, several mounding piles of cash, pensions and security. But we live on just $2,500 a month, she cooed.

Momentarily insane, I replied: “Spending $2,500 a month? Wow. The high life. Is that what you worked decades for?” And so it began – the cacophony of comments pointing out the striking similarities between the current blog host and pond scum.

Well, to be clear, my meaning was this: the most precious commodity we have is time, not money. Nobody can create, borrow, loan or steal a single hour. But you can always get wealth. So how can refusing to spend money, to make time more valuable or memorable, be applauded? Why is it that we praise frugality and make cheap a virtue? I mean, is life all about Kias and Costco, fer gawd’s sake?

Strikes me the point of our existence is to embrace it all. But that’s expensive. So why not work hard and invest to get the cash that can yield a fabulous run during the final decades of your life, when you have the time? Besides, Sherry was full of it. No couple owns a nice house in a urban centre and lives well on $2,500 a month. After property tax, maintenance, utilities, house insurance, car insurance, food, clothing, life insurance, thirsty underwear, Netflix and Milk Bones, it’s gone.

Why do people underestimate what they’ll need, think they can live in the future on spores and celebrate misleading braggarts like Sherry? Because they’re afraid. They fear taking the risk necessary to build wealth, to accumulate that knowledge or make big decisions in their lives. It’s easier to swim with the fishes, open a GIC and let life happen.

This blog is not actually about getting rich so Justin can take it. Or avoiding the house lust that’s gripped so many. It’s about giving over some tools and perspective so you can make a better job of things. If that leads to more security and better days, every day, I’m happy.

Ken lives on Vancouver Island in a trailer and sent me the note below this week. After I thanked him he asked me to publish it, “as the do-gooders probably can’t stand that you are sincerely making a difference in others’ lives.”

That was all the incentive required. Apparently I’m a better person that I realized. I’m off now to tell Dorothy.

“Even though my grammar may be far from perfect I felt the need to express the difference you have made to my life and my families. Many on your site say your pathetic Blog is full of 1%ers – but nothing could be further from the truth. It is just last summer I was directed to your website by a friend of mine who has a Masters in Political Science boosting about your decisive and honest analyst regarding the housing market and money as a whole.

“At this point in my life I had very little savings under $1000 and was in an expensive rental trying to survive based on a small income of $50,000 a year. Within a month of faithfully reading your Blog. I came to the understanding on what must be done in order to save money. Owning a 5th wheel outright my family and I decided to move into our 5th wheel last Sept. We have now been in an RV park for just over a year and for the first time in our lives we have savings of just over $18,000 which to us is like a million dollars. Due to these choices our family now has left over money to do many activities with our children we couldn’t afford before and still add money to what we call a substantial amount to our savings each month

“It is because your unbelievable knowledge in economics we were able to change our lives and see a light at the end of a very long and frustrating financial tunnel. We were raised in a poor family with little understanding of money because their was never much left over due to my own parents household debt, like ourselves our parents had very little understanding about economics, money and debt, yet our eyes are wide open now and we see their is a different way.

Not to toot your horn or your pathetic Blog it is my honest opinion Garth Turner economics should be taught at ever high school and College in Canada, so our children have some understanding of money and can make the proper financial decisions in their future with this wisdom they will have the knowledge to understand financial independence. Hope comes from teachers and great leaders that guide and direct. You are one of those great teachers.

“No matter how pathetic you may think your Blog is you are a genius and making a true difference in peoples lives.

Ken.”

Ken and his family have eighteen thousand, live in an RV and are smoking. Sherry has a house, hoards a million and is vapid. Ken’s living. She’s existing. If there’s a correlation between wealth and wisdom, it’s news to me.

 

214 comments ↓

#1 Lilliotte,BC on 10.30.15 at 4:02 pm

Early Mr T and Happy Friday.

#2 r1200c on 10.30.15 at 4:08 pm

Despite the ever increasing cost of living – it remains popular.

#3 Sean on 10.30.15 at 4:11 pm

Hey Garth, not sure you will answer this — but do you make any money from this blog? Do you just write a new post each day because you like getting the message out and it keeps your mind fresh?
What’s your motivation? I read your posts regularly, this is just curiosity.

This is an insanely non-commercial blog, published to save the world. How’m I doing? — Garth

#4 Bose on 10.30.15 at 4:12 pm

Garth as I pointed it out the other day, the math did not add up of living on $2500, thats the reason I asked for a budget breakup for my knowledge.

Good One ! I do really enjoy your post !

thank you !

#5 Sean on 10.30.15 at 4:17 pm

You are doing good Garth. You are doing real good.

#6 Canadian on 10.30.15 at 4:39 pm

Its that darned Protestant Work Ethic at work: Toil until the end of your days.

You must be a cracker eater like me Garth hahaha

#7 espressobob on 10.30.15 at 4:42 pm

Most individuals live day to day. They have no idea that a “financial future” is their responsibility. Who’s to blame?

In Ontario we could suffer ORPP because the government knows what’s best for us. Isn’t that sweet?

For those that choose to educate themselves on saving & investing maybe things won’t turn out ugly.

Unfortunately blogs like Garths are far and few between.

#8 Michael King on 10.30.15 at 4:45 pm

Writing from Vancouver and watching the local real estate market madness from the own our home with no mortgage for many years sidelines. This link leads to a UBS report on global real estate bubbles. Vancouver is ranked fourth. Garth, you have been warning about YVR for some time and with good reason. If the UBS report is accurate, the Lower Mainland is going to be hammered.

https://www.ubs.com/global/en/wealth_management/wealth_management_research/global-bubble-index.html

#9 Victoria on 10.30.15 at 4:49 pm

Victoria is all smug and happy because our property is apparently not over valued … and Vancouver

“Vancouver, one of the country’s priciest real estate markets, has not been listed among the high-risk markets, although CMHC says it is now detecting “moderate” evidence of overvaluation”

See more at: http://www.timescolonist.com/business/victoria-housing-market-at-low-risk-of-overheating-cmhc-says-1.2099728#sthash.hQ3IvCSe.dpuf
http://www.timescolonist.com/business/victoria-housing-market-at-low-risk-of-overheating-cmhc-says-1.2099728

#10 Freedom First on 10.30.15 at 4:58 pm

Ken, you and your wife rock! Freedom, it involves being free in every way. Financially, emotionally, mentally, making it just as imperative to be feeding the good Karma, as the sane management of ones financial stewardship.

As I said to Sherry in the previous Blog Garth referenced, don’t be afraid to enjoy life. There is a thin line between discipline and denying yourself the pleasure of a life well lived. I have lived well, have no regrets, and have plans to do so until the age of 100. After that, I will decide what do in my old age.

It is easy to become a “hoarder”. Many survivors of the dirty 30’s Depression suffered from this because of what they went through. “Fear” & “Greed” have many different faces.

To me, Sherry saying she likes her lifestyle in her circumstances, is much like a workaholic saying they can’t be a workaholic as they love what they do. Without balance, there is no joy. Any idiot can enjoy a good life. I know.

#11 Pac Man on 10.30.15 at 5:01 pm

Garth,

Reading your blog is one of the high points of the day. You do excellent and entertaining Role Play as a caustic curmudgeon cloaked in dark humor. But it never fooled me – your inner sufi selfless saintliness shines through.

Thank you for bothering to entertain and educate us with your sharp wit.

May you do it forevermore. But unfortunately you won’t be there for us forever. Neither will we, but that’s another matter. Any thoughts on who will hold our hands once you retire upwards to play a harp?
(And look down on Harper – sorry, couldn’t resist that)

#12 Phil on 10.30.15 at 5:03 pm

Garth, who is Sherry Danson? Have no idea who you are talking about. Got a link?

#13 brett on 10.30.15 at 5:04 pm

Retired early, sold the house two plus years ago, travelled.

Now renting. Lots more travel..why stay at home when there are so many places to see? . Why not spend it now…who knows what our health will be in 10 years. We were careful investors. Now we are reaping the benefits. What good will it do us if both of us fall off the perch with a pile of cash or end up in a home, unable to enjoy it??? We are not bragging about how little we spend or how frugal we are. No point in that.
We are simply enjoying ourselves and using our assets in the way we intended when we started this journey 40 odd years ago!

Update on our Calgary home search. Now 28 homes in our search. Over 60 percent have been reduced. Hard to tell if more have been because of the re-listings. In the last ten days alone 5 of the 28 have been reduced. We will continue to rent and review again in March….when we return to our rented condo from our extended winter travels.

#14 kommykim on 10.30.15 at 5:04 pm

RE:

So how can refusing to spend money, to make time more valuable or memorable, be applauded?

I don’t think that was the main thrust of the criticism leveled at your comment. It was the implication that spending more money would make her time more valuable or memorable.
By all means spend your money if it makes you happier, but if it doesn’t, why bother? If the peace of mind, that having a big pile of money gives you, is gone once you have spent it, why do so?

#15 gut check on 10.30.15 at 5:12 pm

Had a short conversation last night that went like this:

Me: But that’s not living.

Other guy: (after a pause) You’re right, life needs to be lived.

Me: That’s the trouble though; it doesn’t. Life doesn’t *need* to be lived and yet there it is passing by anyway. If life *needed* to be lived, you’d do it. Bills NEED to be paid, so you pay them. You *need* to eat, so you do. But life? Nah, you don’t *need* to live it. You can choose to sit there and let it live itself, without you. And you are.

I`ll see if I lit a fire under him or if the blanket was simply too wet to ignite.

#16 Party on Garth on 10.30.15 at 5:15 pm

Latest household credit numbers for Canada (to the end of September, 2015):

http://credit.bankofcanada.ca/householdcredit

Latest business credit numbers for Canada (to the end of September, 2015):

http://credit.bankofcanada.ca/businesscredit

#17 kommykim on 10.30.15 at 5:16 pm

RE:

#12 Phil on 10.30.15 at 5:03 pm
Garth, who is Sherry Danson? Have no idea who you are talking about. Got a link?

This is the start of it all:
http://www.greaterfool.ca/2015/10/25/nine-lives/#comment-406088

#18 Alberta wing-nuts on 10.30.15 at 5:18 pm

I suppose Ricky, Bubbles and Julian were living while all the other responsible fools have been stuck in a dream till it’s finally time to let go ????? Trailer-Park-Boy life,,, sounds like a great future if everyone followed suit…

#19 westcdn on 10.30.15 at 5:36 pm

I have always believed money does you no good until you spend it. I am also a contrarian so I always put some aside for rainy days. Sucks to be frugal but I don’t expect anyone to pay my freight. I think today’s boomers may be the most self-absorbed generation (as a collective whole) in history. True-dough or Winnie will not fix it. I understand the Alberta budget is projecting 50% for health care. You can bet that amount is being driven by unhealthy seniors who can’t take care of themselves.
The nonsense under our Calgary mayor is killing me. 5% salary increase for municipal workers for the next 4 years plus increases for teachers is going to raise property taxes for the “rich”. Rome was emptied by such policies and begat the end for them. It didn’t matter if they were the most technology advanced if they wouldn’t fight. There is talk the old city hall should be repaired for an estimated 34$m and this is a minimum. Apparently the last repair was badly spent. The PM residence (Stornoway) could be razed and rebuild for less. Nenshi is a fool and Calgary residents will pay.
I can’t believe Rachel is afraid of introducing HST in Alberta. She will be voted out regardless of her good intentions. HST doesn’t have to be permanent – best she kills it after 2 years and hope for oil prices to get back to 75$ us per barrel. Meanwhile Alberta oil needs pipeline access to tidewater – preferably through CDN ports.
I bought some Transalta preferred shares back in August. Now I see the company has mentioned a cut to dividends – almost guaranteed to happen. Here comes the acid test on my purchase. I am certain my preferred dividends will hold – let’s see if I am wrong. I was betting underwater preferred resets with a cumulative payment would hold. Life is about learning. I tend to rant.

#20 MissConstrued on 10.30.15 at 5:38 pm

My favourite post so far, Garth. Love it. Keep ’em coming.

#21 JimH on 10.30.15 at 5:39 pm

Congrats and best wished to you and yours, Ken!
What an impressive turnaround!

I wish you all the best of luck, and I know you will find many enjoyable and exciting ways to wisely spend your savings doing some of those things you have for so long thought were far out of your reach!

You are an example to us all!

Live long, my friend; and continue to prosper!

#22 };-) aka Devil's Advocate on 10.30.15 at 5:40 pm

Live today like you want the rest of your life to be.

Start the day right. Your morning predicates how your day will be and your day how your week will be and your week how your month will be and your month your year and your year your life.

THIS is the start of your life.Live

#23 That Guy on 10.30.15 at 5:41 pm

i think the phrase “taking on risk” is a poor one.

Is investing your money in a balanced portfolio for 25 years risky at all? Of course not. Find something better.

#24 axehead on 10.30.15 at 5:45 pm

Seems to me that Sherry is on the way down and Ken is on the way up.

I just refused a job (in Alberta, in this economy) because of time. If you only heed the time wisdom part of Garth’s message today, you win.

My Grandfather died with 50k of cash in his mattress, and that was 30 years ago.

One of my relatives blew 80k willed to her by her mother in the bingo, in less than a year.

Money = freedom, but when you’re dead Money = nothing

#25 common sense on 10.30.15 at 5:49 pm

I love it Garth The Genius!

I’ve only been here awhile and have enjoyed the reality given by Mr. Turner and some of the fellow bloggers..

Yes life is to be lived and i’ll say it again, to each their own. Freedom of choice.

It’s always interesting how the people I know who have NO money are frequently telling me how to spend mine.

“Oh it must be nice to have a summer sports car, travel south 8 weeks a year, work at a schedule you choose,etc.” I make roughly 50-75%% less than these people yet I feel enjoy a far better LIFE style.

I no longer say, you can too if you made better choices and made a few sacrifices. What makes them happy, makes them happy. What makes me happy, makes me happy. No better, no worse. Just DIFFERENT.

Why waste our time comparing to others?…as Garth says, Time is money. I have better things to do like spending some free time on this website.

Happy Halloween one and all.

#26 Drill Baby Drill on 10.30.15 at 5:57 pm

What is wrong with Kia’s and Cos tco ?

#27 Doug T on 10.30.15 at 5:59 pm

18years ago my wife and I along with a 2yr old son were a hair away from filing for bankruptcy. Things turned around thankfully – been on both sides – “money doesn’t buy happiness” bullshit.

#28 Lee Bow on 10.30.15 at 6:01 pm

Garth, when you say that you are “no longer an obedient politician”, does it mean that you still are a politician, although not an obedient one?

In other words, are you entering the race?

#29 conan on 10.30.15 at 6:04 pm

Eleven Samoyeds or blog dog intervention?

#30 ALFRED E. NEUMANN on 10.30.15 at 6:10 pm

“..it is my honest opinion Garth Turner economics should be taught at ever high school and College in Canada.”

Yep Ken. You’re absolutely right. Its a no brainer – it should be taught. In the schools, in the homes, by the banks. Someone, anyone, please..!!

‘Cause the absence of basic financial fundamentals in our society, generally, is appalling and a huge WORRY. Even to me.

Garth, it’d be a great kit and/or online course and you’d be the perfect gent to develop it and promote it.

Heck, you’re already saving lots of us pathetic blog-dogs, so why not the remaining wannabe hopefuls too, who can also learn to shed their confident ignorance?

#31 MSM-Free Zone on 10.30.15 at 6:11 pm

“….Well, to be clear, my meaning was this: the most precious commodity we have is time, not money. Nobody can create, borrow, loan or steal a single hour…..”
_________________________

Thanks for the clarification. I too, was a little bewildered at your ‘high life’ comment. As for financial security preserving time? best piece of advice, ever.

I was wondering how long it would take to post a pic of a Samoyed. A dozen Samoyeds? Bonus points. I’ve had one for seven years, now. With the smile of a dolphin, she definitely knows how to slow down time for you.

Anyone wanting to know about the breed, there is a ‘GTA Samoyed meet-up’ happening this Sunday, 11:00 am at Earl Bales Dog Park in Toronto. I won’t be there this time around, but you can usually count on 20-30 Samoyeds showing up.

#32 Ronaldo on 10.30.15 at 6:17 pm

Some say that “money is the root of all evil”. Some say the ”lack of it is”. You don’t see many rich people robbing banks do you? Well, maybe the CEO’s.

#33 Mean Gene on 10.30.15 at 6:19 pm

The Dalai Lama when asked what surprises him the most about humanity…

“Man because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.”

#34 jess on 10.30.15 at 6:21 pm

Bayh-Dole Act
http://www.truth-out.org/news/item/33459-what-the-steve-jobs-movie-won-t-tell-you-about-apple-s-success

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

Chevron Cuts Jobs, Spending, Growth Target as Slump Persists/Joe Carroll
http://www.bloomberg.com/news/articles/2015-10-30/chevron-posts-fourth-straight-profit-decline-from-oil-price-rout
====================
Profit-shifting
AFR reported that the tax bill may even climb as high as $600 million, as the court decision only relates to $US2.4 billion in loans made by Chevron US to Chevron Australia in 2002, costing the US arm 1.2 per cent but charged to Australia at nine per cent, resulting in total dividends in $1.1 billion up to 2008.

The initial profit-shifting loan scheme continued until the end of 2010, and Chevron is now under audit by the ATO for tax affairs between 2010 and 2014.

Since the initial 2002 loan of $US2.4 billion, Chevron Australia now holds $36 billion in debt to the US arm, and paid $1.8 billion in interest last year, despite costs on the loans to Chevron US being only $350 million.

The court found that the interest paid by Chevron Holdings Australia to US subsidiary Chevron Texaco Funding Corporation exceeded an “arms length price” for borrowing, as related to transfer pricing rules.

#35 Ronaldo on 10.30.15 at 6:28 pm

Ran across this posting to a blog a few years back and thought it made a lot of sense so here it is:

”Monday, february 06, 2006

Die Rich?

I was in the bookstore today just browsing book titles. I saw a book called “Die Rich”. I thought about that for a moment. I realized that “Dieing rich,” is great, but wouldn’t it be better to die broke? It seems like dieing rich isn’t quite maximizing your wealth. Bad planning actually. That’s like dieing hungry with a fridge full of food. You can’t eat it after you’re dead.

Unless you give it all to kids and stuff, which is nice, but if you die broke it could mean you gave it to them before you died and at least had a chance to enjoy watching them use some of it. And that shouldn’t be the point of building wealth. You should hopefully have taught them well enough on how to build their own wealth, unless you don’t know how to do it yourself, and then you will undoubtably die broke.

Just a thought.

posted by me at 2/06/2006 05:17:00”

#36 DM in C on 10.30.15 at 6:30 pm

We declared bankruptcy in 2001 due to a poor house purchase. We rented until 2013. Bought within our 30% ratio and we’re doing good. We know what it’s like to economize and have never forgotten what it was like to roll pennies for diapers when the kids were little (we’re 45) — dumb and in love with babies and underemployed made times tough.

Both of us work in Calgary now in jobs no way associated with O&G.

As to living life — I travel for work 5 or 6 times a year, usually to warm locations or EU, so spouse uses his vacation time to come with me. Nice hotels are paid for, I work, he sightsees and then we tack on a couple days at the end of the trip for doing stuff together. We’re not waiting til retirement to travel. We’re not the type to say, “I wish I had done XX” We’re doing it.

In two years we’re surprising the boys with the family bucket list trip to New Zealand. While paying the mortgage and putting $ away, we’re still doing it.

I guess what I’m saying is, we’re really lucky, and don’t wait. You don’t know what tomorrow brings. My mom is 64 and two siblings of hers developed cancer this year. One didn’t win. We’re going to visit the other next week, just in case.

To paraphrase Garth, there’s living and existing. We choose living.

#37 old gringo on 10.30.15 at 6:32 pm

One of the finest lines I ever heard was in “The Last Samurai”.

When asked “how he died, his friend said , “Let me tell you how he lived”.

Enough said.

#38 Gulf Breeze on 10.30.15 at 6:37 pm

My father was frugal. When my mother developed severe dementia, he refused to pay for adequate care for her, at home. There was the denial factor, but there was also good old fashioned pig headed, idiotic cheapness. It was very hard on us kids. They had their place paid off, an indexed pension, and a quarter million in the bank. We got it sorted out, but damn, it was horrible.

This kind of thinking can be pathological, sort of OCD. I live in an area where frugal types predominate. So, let me paint a picture for you. If it’s free, they’ll take it.

Cars, old boats, you name it. It piles up in their yards and has turned my neighbourhood into a junk yard. None of this crap ever gets used. Imagine a lot with a house, that is a third of an acre, with 4 rotting cars, a boat, 2 trucks, also rotting,etc…oh and the obligatory super ugly aluminum quanset (sp?) hut where they store all their other ‘deals’. (Don’t get me wrong. People who genuinely need them for tool sheds, workshops etc…that’s another story.)

And it’s only getting worse. Because ‘frugal’ boomers aren’t getting rid of their piles of debris, PLUS, they have inherited objects from their parents they have sentimental attachments too. Okay by me, if it doesn’t end up on their front lawn.

So boomers, get rid of your sh** and if you want to do everybody a favor, including the planet, don’t buy what you don’t need, but definitely go out to eat, get massage therapy, travel, donate to charities, help out worthy individuals in your community, who need low interest loans, when their cars break down. And when you are eating out, tip large. To tip large IS a way of living large. Go ahead. Make someone’s day. Part with some of that dough.

#39 S.Bby on 10.30.15 at 6:39 pm

#31 Ronaldo
“Some say that “money is the root of all evil”…

1 Timothy 6:10
“The LOVE of money is the root of all evil.”

Add the word “love” and it makes a big difference.

#40 common sense on 10.30.15 at 6:41 pm

#32 Mean Gene

Great post that reminded me of 2 other buddhist sayings:

“Expect nothing and receive everything.”

“You can have it all but not having IT all.”

I try to live by number 2 and feel like I do have IT all…

#41 Ronaldo on 10.30.15 at 6:41 pm

#35 DM in C

Good for you and your family. You’re doing it right.

#42 common sense on 10.30.15 at 6:43 pm

#34 Ronaldo

Your post reminds me of a great line I heard by an American humorist by the name of Kinky Friedman who claimed his father always said..

“My financial plan is having my last check bounce.”

#43 Leo Trollstoy on 10.30.15 at 6:49 pm

BAM! Ken and Garth nailed it tonight.

Makes no sense for seniors to hoard $ stuck in bricks only to die with it.

Makes no sense.

#44 Leo Trollstoy on 10.30.15 at 6:54 pm

#31 Ronaldo on 10.30.15 at 6:17 pm

Lol!

#45 Adam on 10.30.15 at 6:55 pm

Saving for the future so that one will have a luxurious retirement is great, but some people can enjoy themselves on 30-40k a year. Instead of working hard over a long career just to blow as much of it as possible during a short retirement as your health fails, I think it’s a better goal to learn to enjoy life using less money, and “retire” (or at least stop working a job you dislike) very early in one’s 30s or 40s. This IS possible – many folks are doing it these days and the lifestyle can be fantastic.

#46 QuickWin on 10.30.15 at 6:57 pm

Right on Garth.

We’re a family of 4, kids are still young, and rent. renting allows us to save, but also travel and experience the world, and afford the good things for our kids. At least 4 times a year we’re taking a plane somewhere and visiting another corner of the planet! Meanwhile many of our friends prefer to live hand to mouth in their McMansions, barely scraping by….

#47 Pond Scum on 10.30.15 at 7:01 pm

How dare you try to sidle up to our splendid greenness in your self-serving comparison, Turner.

You say your posters compare yourself to pond scum? Ha!!

Try, you and Conservative Kool-Aid, a more fitting toxic fluid denunciation as intended by those disaffected posters.

Don’t try to brown-nose your way into our much cleaner environs.

But do stay liquid, a real estate crash is coming ;)

#48 Estrella on 10.30.15 at 7:02 pm

I think frugality is in the eye of the beholder.

My grandparents grew up during the war, and immigrated to Canada in the sixties.
They were considered rich back in their village, not so much here. They came a little too old to a new country. They were content with what they had I think.

The biggest European thing is to leave something for your kids. They did.

Maybe it would have been different for them if they grew up in a different era.

True story is my grandfather left his children some money hidden inside an old tobacco tin. He didn’t believe in banks. Go figure. He kept it in an unlocked shed in the backyard.

All in all, they taught me to save. That’s something they knew how to do.

#49 Sitting around on 10.30.15 at 7:11 pm

Hoping my husband and many others read and UNDERSTAND what wonderful advice Garth is sharing. Thanks Garth.

#50 Dave on 10.30.15 at 7:13 pm

I don’t understand this post.

Then ye are doomed. — Garth

#51 Prairieboy43 on 10.30.15 at 7:16 pm

I knew and old man named Johnny Johnson. Johnny was a filthy old 80 year old single male. Johnny walked very slow. Always looking straight ahead as he shuffled his feet forward. I remember talking to him as a kid. he would grunt something to me (I don’t know if it was good or bad). I don’t think Johnny had a shower in his life. “A bear would smell better”. Johnny would chew snuff (chewing tobacco), always spitting it out in some direction. Thankfully it did not hit me.
One month the women in the town, were fed up and took him in and washed him down. Cleaning years of dirt, grime and tobacco buildup that had accumulated. Johnny looked pretty good for a month. Then he passed away. Johnny had no one to leave his home or assets too. The government claimed them. What the government officials found was Chewing Tobacco tins full of cash. Johnny had stashed over $100,000.00 (1980 dollars). Johnny just did not spend money. He was happy, I think! In the end, it was the government of canada that benefit.

#52 Daisy Mae on 10.30.15 at 7:18 pm

“Apparently I’m a better person that I realized. I’m off now to tell Dorothy.”

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

LOL THAT is so funny! You’re a riot!

#53 Retired WI Boomer on 10.30.15 at 7:42 pm

Ken, you learned the lesson well, if maybe a little but later than some. At least it IS making a difference in quality now.

As for Garth, well… to each their own. If living frugally is what snaps Sherry Dawson’s chain, and she is OK with it, what else matters?

I dare say, from the commenters on here, a vastly diversified group, from the dignified captain to the motley
crew.

All certainly live differently, have values that might not line up easily to the next poster. I worked with a dear lady who prides herself on being “frugal” yet her frugal is my cheap. Value difference that is all. Some here like beer, others scotch, wine, bourbon etc.. I prefer brandy.

Similarity: ALL cost money, a lot of the cost is TAX.
Imbibe too much the effects similar.

Difference: Taste mostly, price, some after effects, too.

Most are here to learn something about handling money. Perhaps that includes how to invest it, make it grow, and spend it efficiently.

Pathetic blog it might be, but it is sure is a fun place.
Thanks, Garth.

#54 Daisy Mae on 10.30.15 at 7:44 pm

“Garth Turner economics should be taught at ever high school and College in Canada, so our children have some understanding of money and can make the proper financial decisions in their future with this wisdom they will have the knowledge to understand financial independence.”

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

Absolutely. I’ve always felt that CPR and swimming lessons should also be compulsory — rather than the usual PE. DO and LEARN SOMETHING USEFUL.

#55 Smoking Man on 10.30.15 at 7:45 pm

Only certainty in life is Death.

Everything in-between should be fun. One worry and you’re doing it wrong…

I so need to publish my lifes story.

#56 stage1dave on 10.30.15 at 7:45 pm

Great post and GREAT clarification!

Saving money is ALWAYS a means to an end, which is why I keep lurking around here…lots of good advice & strategies. I might disagree with some of the methods, but not the overall goal.

All the money in the world won’t buy any of us another moment, anyway. Enjoy living; but it’s easier to enjoy if you’re not broke.

#57 Grey Dog on 10.30.15 at 7:53 pm

DM in C
We did that, hubby travelled the world for work, and I went to the great spots. Vacation for a week or two before or after the meeting/conference. A wonderful opportunity to observe the world/country. We did that from 93 to 2009…when the golden handshake given and husband pensioned off.
He soon got re employed now we “live on pensions” and SAVE his current salary for our retirement years which are quickly encroaching. Soon a time to celebrate!

#58 Cici on 10.30.15 at 7:53 pm

I agree with Garth about Sherry being a misleading braggart, but who knows, maybe she’ll live to a 115 and need that entire hoard.

I have to say: I’ve always detested those greedy little penny-pinching-bugger types whose favourite past time is counting their steaming wad of cash. Especially when most of it is coming from other tax payers. They’re always the dullest people with an incredible lack of imagination.

Yes, it is good to take care of yourself and your family by getting your financial house in order, but you’ve got to get ouside for fresh air and take some risks too (like smiling at strangers and enjoying what is left of our natural environment).

Being a miser will probably make you miserable, although glorifying the almight dollar and overspending probably won’t make you happy for very long either. Ten years ago I was broke ($30,000 in savings, but $30,000 in student-loan liabilities), but I was having the time of my life: tons of great friends in the same boat, so there were a lot of cheap excursions (hikes in the woods, daytrips to the country, potluck suppers), etc., and those were some of the best days of my life. Life really is what you make it.

Now the student loans are gone, I’m coupled, as are all of my friends (which means we have families to take care of and hardly see each other). I am investing for the future, have no debt, and have more fun money than I’ve ever had in my life before. But, I have to admit…although I’m really good at spending and accumulating, I find too much excess a tad dull and rather soul-sucking.

I’ve recently made two turnarounds in my life: I’ve joined a competitive running/cross-country skiing group to get my a$$ of the couch and away from the online shopping screen, and I’m going to try to reduce my monthly spending bill and give part of the difference to a worthwhile charity that has value to me…Because life isn’t just about wants and needs ;-)

#59 bobs uruncle on 10.30.15 at 7:54 pm

So, on the theme of taking risk and thinking big…does it make sense to drop $75K on an MBA with the hope of higher earnings? Or, is it better to invest the same $75K. What say you and the blog dogs?

#60 Smoking Man on 10.30.15 at 7:55 pm

Working on my next Big Drunk, two wines deep and a long way to go..

Why does one do this…Hell I don’t know

At Stir, where else on a Friday or Saturday night.

Hanging out with losers.. Makes me feel kind of superior..Teachers did a number on me. Now their running a county.

Demented habit for sure…

Waitriss two more please.

#61 the Jaguar on 10.30.15 at 7:57 pm

If you gathered together a few dozen cancer survivors or people who had cheated death in some other way, or ones who had lost a loved one….they could tell you why time is more valuable. Until people experience great loss or face their own mortality they don’t really get it.

#62 Renter's Revenge! on 10.30.15 at 7:58 pm

@#22 That Guy:

How ’bout “growacet”?

#63 Cici on 10.30.15 at 8:00 pm

Oh yeah, one more thing. I drive a cheap Honda, which someone gouged in a parking lot two days after I got that little congratulatory letter saying that I had paid it all off (isn’t that just a little too ironic, yeah, I really do think!). Oh well, it hurt less than it would have if it had been a luxury car. Go Kia/Honda Go!

#64 Daisy Mae on 10.30.15 at 8:02 pm

#14: “By all means spend your money if it makes you happier, but if it doesn’t, why bother? If the peace of mind, that having a big pile of money gives you, is gone once you have spent it, why do so?”

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

Travel is nice. But it isn’t everything. Day to day living is what is important. If you are content and happy, what is the problem?

#65 In the cold from Toronto on 10.30.15 at 8:07 pm

Four Cautious – who wanted to see excellent 2 bedroom apartments in Toronto for $1,600:

http://www.minto.com/gta/Toronto-apartment-rentals/High-Park-Village/main.html – $1719 (it went up a bit since I rented here)… Next to High Park, with its own pool, close schools and High Schools that are in the top 15% in the Fraser Institute survey

also: at $1550/mo:
http://www.apartments2rent.net/preview_bacb.php?nxB17347, next to UCC, etc.

$1557/mo: http://www.sterlingkaramar.com/apartments-for-rent/emerald-towers

JUst use Google, and you will find more

#66 Smoking Man on 10.30.15 at 8:08 pm

Always re invent yourself. Do it often. Many times over.
10 times a year.

The bastards will never be able to lable you.

They will attempt and fail at judging you , ALWAYS in a perpetual state of confusion.

Ya, I’m talking to you, CSIS, CIA, NSA, MADSSAD.

BRING IT ON, ITS JD TIME.

#67 Freedom First on 10.30.15 at 8:08 pm

#31 Ronaldo

Money is the root of all evil is not how this cliche is worded, though many quote this incorrect reference to it. The generational passed down saying is “Love of money is the root of all evil”. There. No charge.

#68 Freedom First on 10.30.15 at 8:17 pm

#37 Gulf Breeze

I am a Boomer. One who does not need your advice. In fact, obviously, I could teach you a great deal.

#69 nonplused on 10.30.15 at 8:19 pm

Well, I hope it’s a big RV. In a warm climate with full hookups full time RV living can be manageable, you have all the amenities some even have a washer and dryer but if not the RV park might if it’s designed for year round living. But it doesn’t work well in Saskatoon. Not enough insulation even in the most expensive rigs you go through propane like no tomorrow.

I’ve seen guys put a wood stove right in the RV or build an annex on the front with a wood stove. That can help but then you need a lot of wood and that isn’t much cheaper than propane anymore, plus a lot more work. But if you live on Vancouver Island RV living can work all year round. It’s like living in a micro-condo though.

Ya and about living on $2500 a month, that barely covers booze and smokes for my wife and I plus our hanger-ons.

#70 BC Guy on 10.30.15 at 8:20 pm

Livin’ in a van, down by the river …

Me so house-horny.

#71 RayofLight on 10.30.15 at 8:30 pm

Our garage used to be filled with stuff my wife accumulated & also inadvertently inherited from our family lines. About a year ago, I seriously started to “decrapify” my life and garage. Do not expect to receive any form of $ for even the really good stuff. The method that I used that helped me was to walk around the garage, and house, with a point and shoot camera. Take a picture of the object and then sort these pics into folders called “Metal Recyclers”, ”Woman’s Shelter”, ”Salvation Army”, ”Dump”, etc. Pick a day and vow to complete one folder’s worth. After you’re done, you will be amazed how better it is without this legacy stuff. After you’re done, you will be slapping the palm of your hand to your forehead asking yourself why this took so long to do.

#72 young & foolish on 10.30.15 at 8:30 pm

“Most individuals live day to day. They have no idea that a “financial future” is their responsibility. Who’s to blame?”

How much “freedom” do you want?

#73 PEGGY on 10.30.15 at 8:46 pm

Agree with Ken 100 PERCENT!
Garth THANK YOU FOR EVERYTHING YOU D, HAVE DONE FOR ME!
FOREVER GRATEFUL
PEGGY

#74 Leo Trollstoy on 10.30.15 at 8:51 pm

#58 bobs uruncle on 10.30.15 at 7:54 pm

I’d skip the MBA and invest it.

#75 Leo Trollstoy on 10.30.15 at 8:53 pm

I agree with Garth about Sherry being a misleading braggart, but who knows, maybe she’ll live to a 115 and need that entire hoard

Why? They can supposedly live on $2500 a month. CPP and OAS for both of them could pretty much cover that.

No need for the rest of the hoard unless mortgage free bragging rights are important.

#76 amazon girl on 10.30.15 at 8:55 pm

Thank you Garth for your beautiful post tonight.
I love the picture, it reminds me of Bandit. One
of the most beautiful dogs on the planet.
I live my life, a quarter mile at a time. Be greatful
for the very short time you have. Embrace uncondtional
love. Be humble , travel, and remember how small
you are in this universe.

#77 Two-thirds on 10.30.15 at 8:59 pm

As pathetic renters, one thing my household is able to do is contribute freely and constantly to charities, with minimal temptation to stop.

Having estimated that the carrying costs of the house we inhabit would be 40-50% higher than our rent (if we were to take the plunge at current prices), I know the pressure to redirect funds from monthly charitable donations to housing expenses would be very, very real and substantial.

So, yes, we pathetically pay someone else’s mortgage *and* are able to give back. I can live with that – and sleep well at night.

Long live this pathetic blog!

#78 Kreditanstalt on 10.30.15 at 9:05 pm

What most people will never get is this: it IS possible and easy to live a very comfortable life spending $2500 a month without a mortgage. Very easy.

What on EARTH more do you need?? Cruises? Swimming pools? NFLX? More toys…

Happiness is not measured in how much one spends. It’s measured in time together.

Lots of commenters here have said it. You just said it yourself, Garth…there’s nothing more valuable than TIME. And spending a couple of hours with my family watching a 50-cent Oscar-winning movie on VHS together is just as enjoyable (and saves a damn lot of money and time to boot) as spending more DOLLARS and TIME AND EFFORT SPENT ACQUIRING THEM on more toys.

If at age 50 you haven’t acquired ALL the household goods, gadgets, toys and equipment you’ll need from there on in, you HAVE been goofing off. But there are more important things in life than spending money.

#79 praire person on 10.30.15 at 9:07 pm

Many of the borrowers were struggling financially and eventually defaulted. By last year, according to court records, the bank had lost at least $12-million.

“This offence has the potential to seriously damage the value of all homes in the Brampton and Mississauga area,” Crown prosecutors wrote in a court brief. “With a potential forecasted increase of 1 to 2 per cent on the mortgage interest rate, foreclosures will happen to some of these mortgage holders who can’t even afford the current mortgage rates. Many of these homes could be foreclosed upon and whole communities will suffer from a fall in home values. This scenario occurred in the United States with the subprime mortgages.”

#80 young & foolish on 10.30.15 at 9:13 pm

” … Garth Turner economics should be taught at ever high school and College in Canada.”

What’s to teach? Spend less than you earn and invest the rest in diverse assets across multiple markets, while using available tax minimizing programs (RRSP, TFSA) when possible.

#81 jimbo on 10.30.15 at 9:13 pm

Can t help but think of a verse that was painted on the side of a barn outside one of our national parks ….
what shall it profit a man if he shall gain the whole world but lose his own soul or what shall a man give in exchange for his soul…

#82 Timmy on 10.30.15 at 9:15 pm

Come on people, sign the petition to keep the 10K TFSA limit
https://www.change.org/p/justin-trudeau-keep-the-annual-tfsa-contribution-limit-at-10-000

#83 Dwayne in Hamilton on 10.30.15 at 9:15 pm

this is your best Garth, i laughed so hard i spilled caviar on my Armani suit

a family living in an RV? Walmart lets em park for free, you can hear ‘wheel of fortune’ from all their televisions

#84 Missing the East Coast on 10.30.15 at 9:30 pm

Hey #58
Re: MBA – do it because you want to be the “best you you can be”, not because it will get you ahead, or be a good return on your investment.
I just did an Exec MBA. It was gruelling, but awesome. Fortunately my employer footed the bill and was not smart enough to handcuff me. I have left, and 6 months after completion am a CFO of a large company. So yes, full payback in less than a year. But really – I did it for me, and would have been happy with the sense of accomplishment if that was all that came out of it. Not all of my classmate’s are having the same result.
It was a hell of a sacrifice though – I work full time and am a mom. Losing 2 years of your life has got be be something you really want!

#85 Retired WI Boomer on 10.30.15 at 9:34 pm

#59 The Jaguar

What you say is quite true.

You need not spend a lot of money to get “experiences” or “go places” but, merely right a wrong, visit the neighbor you never took time to know, walk the neighborhood, thank a local politician for their service… and a hundred other ways to show “you ARE alive”

These DO take time, and yet, strangely, they’re worth it

#86 Vicpaul on 10.30.15 at 9:44 pm

#69. RayofLight

Absolutely cathartic…..I’ve lived it.

#87 Sydneysider on 10.30.15 at 9:44 pm

“Nobody can create, borrow, loan or steal a single hour. ”

That’s not strictly true. Time passes differently in different reference frames (depending on the speed of the frame, and the strength of the gravitational field, if any).

https://en.wikipedia.org/wiki/Time_dilation

A back of envelope calculation suggests that one who travels at 2000 km/hr relative to Earth for all of his life would gain an extra hour of life relative to us.

#88 Leo Trollstoy on 10.30.15 at 9:48 pm

Many of the borrowers were struggling financially and eventually defaulted. By last year, according to court records, the bank had lost at least $12-million

One year and the bank lost $12m?

They probably made that back in 1 hour.

#89 learningfromyou on 10.30.15 at 9:50 pm

Thank for this post Garth.

I come to this blog looking for answers, I can say that almost daily I’m here, collecting little pieces of knowledge to fill the puzzle, even when I do computer programming to make my living I can say that I have just a little knowledge in finance, still not enough to achieve the financial security (meaning for me having my expenses paid from passive income).

>Well, to be clear, my meaning was this: the most >precious commodity we have is time, not money. Nobody >can create, borrow, loan or steal a single hour. But you >can always get wealth. So how can refusing to spend >money

I completely understand your statement Garth, I’m agree with it, but I’m in the process of making sacrifices in order to achieve my goals. Sometimes I ask questions in your blog, sometimes I event emailed them to you. Like a blind person we suck the soup not because we wanted to eat that way but because we do not see the spoon besides our plate.

Just an example, what somebody does with 40k from a secured credit line at 3.5 interest?
I did my calculations and it gave me a result of 1.02% gain in a balance portfolio after all the variables I put in the equation.

I want to know where is my error.

In relation to Sherry Danson, I honestly feel a deep respect for her, myself in her position, will go to work knowing that I do it not because I have to, but because I will enjoy the day doing it.

Just my opinion, enjoying the life also depends on our definition of happiness, maybe this lady will feel miserable if somebody redefines her perception of life expending money even when she does not want.

Thank Garth again, with your blog I’ve come out a little more from my ignorance in finances.

I leave you know, I’m writing code apart of my work to achieve my goal.

#90 Ontario's Left Coast on 10.30.15 at 9:50 pm

Garth, with all due respect, it appears to me that you followed up your beat-down on poor, defenseless Sherry by heaping another boatload of hate upon her. What’s up with that and why are you being so judgmental? If she’s not hurting others and seems perfectly happy living on a shoestring, who are you to put her down?

My wife and I save 35 per cent of our take-home income and never left our starter home. I could drop cash on a McMansion but, guess what, I abhor waste and am happy as a clamp just where I am. Again, not infringing on anybody’s rights, so who’s to judge? We’re all different so just live and let live, friend… Cheers!

#91 waiting on the westcoast on 10.30.15 at 9:53 pm

Garth – you never struck me as someone who would care what the masses think (even on this pathetic blog)… Then again, you were (are?) a politician.

Please discontinue the blog. The more educated everyone becomes about the merits of putting their own freedom ahead of the communal psychosis of our society, the fewer employees and consumers available for my businesses (said only half-jokingly)…

#92 Nora Lenderby on 10.30.15 at 9:53 pm

Great post, Mr. T. It’s a good thing that you care enough to do what you do. Some people can be helped, although you’re fighting a tide of ignorance.

#93 Haha - Meltdown on 10.30.15 at 9:53 pm

How mortgage fraud is thriving in Canada’s hot housing market
http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-fraud-on-the-rise-among-brokers-trying-to-help-clients-qualify/article27051297/

#94 Keen Reader on 10.30.15 at 10:05 pm

Owned twice and rented four times while reading Garth’s books and blogs over the last 15 years. Regretted buying both times, while rentals were nice and cheaper after all. This resulted in an impressive portfolio of ETFs. Still renting and fully enjoying the great freedom obtained by applying what I’ve learned from our host. My sincere thanks, Sir!

#95 Flamed out in Kitchener on 10.30.15 at 10:21 pm

Here’s my two cents …

True wealth, first and foremost, is good health … money can help with that to some degree, but without good health most other things in life are onerous and much less joyful, and for some poor souls; dismal.

True wealth is also in understanding and respecting yourself and in searching out knowledge … money can’t fix a misguided and aimless life.

Finally, having money is always better than not having money, to state the obvious … but fully comprehending that money is nothing more than the tool … not the prize … enjoying every moment, every day and all the world has to offer … that’s the prize.

Enjoy the weekend … and as always Garth – Thank you.

#96 Adam on 10.30.15 at 10:23 pm

I don’t know about the rest of you blog dawgs but living in an effing trailer isn’t my idea of living life to its fullest.

#97 Habs76-79 on 10.30.15 at 10:25 pm

Stuff I have learned as time passes…

The biggest key to peace of mind and daily quality of life is to live just below your means, not at your means, nor above your means.

Wealth is not really measured by how much money you have and even things you buy (or own only if they are paid off).

One can earn 6 or 7 figured incomes, yet still live beyond their means and ultimately if not checked lead one into the poor house.

Living just below your means can give you a sense of relative wealth as to one’s income and net worth. PEACE OF MIND has incredible value. Living just below your means, will mean that you will often have bought less crap that you did not need nor maybe even want, it means you have rainy day savings and likely some money to invest for the long term.

If the means you have are lower than you like, then find a way to increase your means and that is not done by FAUX-LIVING on credit that you should not be using to prop up a phony lifestyle.

IF YOU CAN’T AFFORD IT, YOU CAN’T AFFORD IT!

Living beyond your means to create a false wealth for you and worse to impress others is STUPID!

Live for today, but save a bit for tomorrow, keep credit and debts in check to your means of payback and stop living to impress others. THEY REALLY DO NOT CARE! They are absorbed in their own lives.

#98 Habs76-79 on 10.30.15 at 10:37 pm

#26 Doug_T

You got that right, money in of itself does not buy happiness. If it did then we would not see and hear about misery of celebs and pro athletes etc.

Money buys some peace of mind if you are aware of its pitfalls. Money can lead you astray if you think you are better off than you really are. It can support a quality of life that you develop to be comfortable with. It can buy you things and services but happiness is a state of mind. That state of mind can be popped and beat up on in a multitude of ways.

A millionaire/billionaire going through a messy divorce will not be happy even with his/her millions/billions.

A millionaire or billionaire if contracting a chronic or mortal illness will not be happy because he/she has money.

IT’S ALL RELATIVE, JUST AS LIFE IS!

#99 45north on 10.30.15 at 10:39 pm

prairie person: This offence has the potential to seriously damage the value of all homes in the Brampton and Mississauga area

this is a quote from an article in the Globe and Mail:
http://www.theglobeandmail.com/report-on-business/mortgage-fraud-on-the-rise-among-brokers-trying-to-help-clients-qualify/article27051297/

from the same article: Mr. Cashin believes Ottawa may need to take a second look at all of the regulations put in place in recent years to safeguard the housing market if it really wants to curb the demand for fraud.

this gets to the nub of the question: what’s Justin Trudeau going to do? Is he going to loosen mortgage standards? He already said that he’s going to make it easier to take money out of an RRSP for a “life event”.

#100 NoOneOfConsequence on 10.30.15 at 10:41 pm

Bleh…this post is too much cake and ice cream.

honestly…this is almost too fawning over the Garth

#101 Silent the people on 10.30.15 at 10:43 pm

Garth, You should take this congrats and realize you have made some people appreciate your efforts! Keep up your good work and don’t let the BS make you give up!

#102 Millmech on 10.30.15 at 10:54 pm

Garth,
Absolutely perfect,remember visiting Dad in the home when his health had deteriorated,sat with him and listened to his most important advice he could ever give”you can’t buy more time”.
He said he would give everything he had to have what I had which was time.Sticks with me to this day that word of advice,Left a great paying career to move to the north Okanagan for 50% less money but way more time off,truly priceless.

#103 Washed Up Lawyer on 10.30.15 at 10:54 pm

While money may not buy happiness, it certainly buys a better brand of sadness.

Many so called affluent people are just broke on a grander scale.

To wit: Luxury home sales in Calgary.

Oh and, the Flames overachieved last year.

#104 Toidy Talent on 10.30.15 at 11:11 pm

#61 Wailing Whales on 10.29.15 at 11:43 pm
Garth

The bailout of Bombardier shows that big brother will not let the big fish in Canada sink….even at the expense of wiping out shareholder value….the same will happen with RE…expect a bailout with the taxpayers on the hook for billions….

Not a chance. — Garth”

Take a deep breath, read the following article,

http://www.thestar.com/business/2015/10/30/quebec-to-ask-ottawa-to-match-1b-bombardier-bailout.html

Do you wish to reconsider your answer?
Bail-outs are going to become the norm, as the country descends intro a Greek death spiral….the dominoes are falling!

Maybe you could write a blog about exit plans for Canadians should the frozen turds hit the proverbial fan

#105 Toidy Talent on 10.30.15 at 11:15 pm

#85 Missing the East Coast on 10.30.15 at 9:30 pm
Hey #58
Re: MBA – do it because you want to be the “best you you can be”, not because it will get you ahead, or be a good return on your investment.
I just did an Exec MBA. It was gruelling, but awesome. Fortunately my employer footed the bill and was not smart enough to handcuff me. I have left, and 6 months after completion am a CFO of a large company. So yes, full payback in less than a year. But really – I did it for me, and would have been happy with the sense of accomplishment if that was all that came out of it. Not all of my classmate’s are having the same result.
It was a hell of a sacrifice though – I work full time and am a mom. Losing 2 years of your life has got be be something you really want!”

What goes around comes around….you stiff your employer like that after they took such care of you and yet you are proud of it? Says a lot about what is wrong with the world today!

#106 Rexx Rock on 10.30.15 at 11:17 pm

I’m glad the majority of Canadians are enslaved with mortgage and consumer debt.There stupid and brainwashed since grade 1.Many will pay the piper for owning 4 walls and a roof.Wait until property taxes eat up a lot of your income.

#107 not me on 10.30.15 at 11:37 pm

#9 not me on 10.30.15 at 4:50 pm
Further to #3 Sean on 10.30.15 at 4:11 pm – curious, how many clients have you got, directly or indirectly, as a result of this blog? You don’t have to answer if you don’t want to.
Your comment is awaiting moderation.

– you didn’t have to answer but at least you could’ve posted the comment/question, no?

#108 For those about to flop... on 10.30.15 at 11:44 pm

Garth is like a window ….he shines a beautiful light on things.
Freedom First is like a door….knob.

#109 praire person on 10.31.15 at 12:16 am

Realtors at work
CMHC’s Fall Forecast for Victoria projects that the market will continue to see a level of sales above the 10-year average for the next few years. Rental vacancy rates are expected decline to 1% in 2016. Population growth is forecast to add an average of approximately 4,150 people to the Victoria region each year until 2020. All signs point to revenue stability and an increase in the value of your Asset! Want to discuss further.

#110 Bby604 on 10.31.15 at 12:25 am

I see why gold is a dead asset class no yield or dividends but why does the ny fed have 7000 tons of it ?
Why don’t they sell it now ?

#111 Panhead on 10.31.15 at 12:27 am

Still waiting for a Scotty dog pic …

#112 Love my Kia on 10.31.15 at 12:34 am

I had a hard time getting past the picture, they look a lot like samoyeds, just smaller. Beautiful dogs.

#113 Love my Kia on 10.31.15 at 12:37 am

Now that I’ve read the article, I DO love my Kia. It doesn’t give me memories to cherish, but its cost and reliability affords me the opportunity to travel and enjoy life and experiences. So there!

#114 Love my Kia on 10.31.15 at 12:47 am

#10 Freedom First,
To me, Sherry saying she likes her lifestyle in her circumstances, is much like a workaholic saying they can’t be a workaholic as they love what they do. Without balance, there is no joy. Any idiot can enjoy a good life. I know.
*************************************
Workaholics don’t see working as work, it’s ‘passion’. There is a difference and if it brings them joy, who are we to judge? Same as Sherry, her reward is security and it puts her most at peace and on her terms.

#115 meslippery on 10.31.15 at 12:58 am

No couple owns a nice house in a urban centre and lives well on $2,500 a month. After property tax, maintenance, utilities, house insurance, car insurance, food, clothing, life insurance, thirsty underwear, Netflix and Milk Bones, it’s gone.

I get that $30k is that net? minimum wage $11.25x 40
= $450.00×52=$23000.00 gross

#116 Nagraj on 10.31.15 at 1:06 am

Please pardon my interrupting this moving discussion about the meaning of life, the nature of time, and the uses and abuses of dollars and cents. [I do sympathize with #50 DAVE who wrote, “I don’t understand this post.” To which Garth replied, “Then ye are doomed.”]

But I am compelled, for the sake of the peace of mind of those who care, to post an update re the murder of the Harpers’ pet chinchilla, Charlie.
As you know, Gypsy the cat put him in the blender and drank him.

Well, when Laureeny recovered from her swoon and confronted Gypsy, Gypsy LIED. He said Stanley did it. Stanley is their new kitten.
Of course Stanley is innocent.

Infuriated with Gypsy’s mendacity, Laureeny put him into solitary and told him that as punishment he wouldn’t be let out until AFTER Hallowe’en.

P.S.
There are credible reports of stores running out of JT masks and niquabs, and we may safely assume that many of these will show up at the Harpers’ door tomorrow night.

#117 Squish on 10.31.15 at 1:42 am

#94 Haha – Meltdown on 10.30.15 at 9:53 pm
“How mortgage fraud is thriving in Canada’s hot housing market”

——-
Anecdotes have to be taken with a grain of salt, obviously, but just yesterday I chatted with an acquaintance who has never had an “above the table” job in his adult life, wanting to buy a house here in (of course) BC. Claims he just handed ten grand cash to a mortgage broker his similarly-situated buddy recommended to him and …voila! Paper trail problem solved, half million dollar house purchased. With CMHC insurance, no less.

#118 Gulf Breeze on 10.31.15 at 1:54 am

#61 Freedom First,

I’m a boomer too and you have taught me much about who to ignore, already. But thanks for the offer!

#119 Ronaldo on 10.31.15 at 2:20 am

#42 Common sense

I like that plan a lot. lol Am currently working on my estate plan. I shall arrange that with my executor.

#120 Inheritance Tax? on 10.31.15 at 2:24 am

What’s your take on inheritance tax?

I’m also surprised that few have mentioned this — you have no kids, and certainly no grand-kids. When you have lots of money, there’s no need to spend it all. You can can be the bank-of-mom/dad so that kids and grandkids can enjoy life.

As a country of immigrants, that’s how it works. Each generation is suppose to better the next.

#121 MrYu on 10.31.15 at 2:26 am

Not understanding Garth logic in abandoning RE to invest in bloated, hyperinflated stockmarket. Like leaving Titanic for a leaky rubber dingy. RE & stock crash together

http://charleshughsmith.blogspot.ca/

What go up never come down!? Foolish stock chasers no different than foolish house buyers at nosebleed levels.

Equity markets reflect economic conditions, corporate performance and expectations of the future. Thus, they will always be overbought or undervalued, and in constant motion. This is why smart people have balance and diversification in their financial lives. If you have not picked up that message from this blog, you’re too thick to save. — Garth

#122 Ronaldo on 10.31.15 at 2:41 am

Now this is an interesting story about a homeless man who left behind $4 million dollars.

http://www.npr.org/2009/07/27/111091624/homeless-man-leaves-behind-surprise-4-million

#123 Cdn Mom on 10.31.15 at 3:05 am

Why the dump on Sherry, and disbelief that $2,500 a month is ok to live on?

Our starter home is paid in two years. About the same time the kids will be gone. Bills without the mortgage (current amounts):

140 property tax
217 insurance car x2 & house
65 nat gas
150 elec/water
20 phone
60 cable
60 internet
30 water heater
100 gas
600 food
100 misc

total $1542

#124 Cdn Mom on 10.31.15 at 3:05 am

Make that NOT ok to live on.

#125 jane 24 on 10.31.15 at 5:01 am

As the old joke goes…

Neighbour – I see that Sam has passed away. How much did he leave?

Sam’s Lawyer – All of it.

#126 Axehead on 10.31.15 at 7:19 am

#26 What’s wrong with Kias and Cosco?

Quality.

If you look under the blanket and beyond the purchased accolades and see the design and construction of Korean cars, they are simply a copy of Japanese cars from 20 years ago, manufactured with substandard materials.

Costco is OK for pomegranate juice, cheese, Perrier, socks,coffee and books…but most things there are made in China and suck as far as quality unless name brand.

#127 LP on 10.31.15 at 7:54 am

The following is excerpted from a blog posting from St Alban’s church in Washington DC. It comes to my in-box almost daily. Given the musings from some posters here about the value of time vs money it seems appropriate to send this along. It will speak to many of you; it certainly did to me.

Time Change
by deborahmeister

Last week, I found myself reading these words:

“Today I wondered What is the worth of a day? Once, a day was long. It was bright and then it wasn’t, meals happened, and school happened, and sports practice, maybe, happened, and two days from this day there would be a test, or an English paper would be due, or there would be a party for which I’d been waiting, it would seem, for years…. Not anymore. The “day” no longer exists. The smallest unit of time I experience is the week. But in recent years the week, like the penny, has also become a uselessly small currency. The month is, more typically, the smallest unit of time that I experience….A month is marked, not by a sense that time has passed, but by a series of automated withdrawals. I look at my bank account, near zero, and realize, It must be March.”*

Do these words resonate with you? Do you also have the sense that the days careen headlong into evening; that you had a lovely day in August and the next time you looked up, November was upon you? We are all so busy, so deeply committed to so many things, or, at least, so busy making commitments to things that we sometimes care something about, that it is easy to lose our place in time, to lose our moorings in the reality of this world we inhabit.

#128 cropgrower on 10.31.15 at 8:46 am

wow…..living in a fifth wheel, in a rv park, with the family, 365 days a year…..the good life…..thanks to Garth’s advice………no thanks.

Would you prefer a concrete box in the sky with a bicycle locker in the basement? — Garth

#129 Nora Lenderby on 10.31.15 at 8:54 am

#97 Adam on 10.30.15 at 10:23 pm
I don’t know about the rest of you blog dawgs but living in an effing trailer isn’t my idea of living life to its fullest.

Better than the alternative, according to Mr. Ken. Family is important to him. He is now able to save.

Many people here have made sacrifices to achieve something worthwhile. You perhaps haven’t needed to.

#130 Nora Lenderby on 10.31.15 at 9:03 am

#124 Cdn Mom on 10.31.15 at 3:05 am
…30 water heater…

Seems a bit expensive. Did you consider buying your own?

#131 Sparky on 10.31.15 at 9:08 am

#97 Adam.

I don’t know about the rest of you blog dawgs but living in an effing trailer isn’t my idea of living life to its fullest.

Do you need confirmation from others to justify something you wouldn’t do? That statement appears to be herd thinking looking for an attaboy.

The premise of this blog is financial literacy and figuring out how to get where you want to be, starting from where you currently are. Not everyone is starting from the same place. Instead of trying to put this guy beneath you (and he’s not), applaud the guy for doing something about it and it working out for him. At least he has the stones to take care of business. People are happiest when they are doing what they are supposed to be doing, and it looks like he’s doing the right thing. Most will just fret and stew and let the world happen to them.

Which one are you?

#132 Ontario's Left Coast on 10.31.15 at 9:52 am

#98 Habs76-79 – Stuff I have learned as time passes…

The biggest key to peace of mind and daily quality of life is to live just below your means, not at your means, nor above your means.

Couldn’t agree with you more and so very well put. My dad was a charismatic young guy from an immigrant family, but had to leave school at Grade 9 to help support the household in Hamilton’s dreary north end. Despite the humble beginning, he eventually became a self-made millionaire of the true ‘bootstraps’ variety.

We had a nice house and he always drove new Lincolns (back when that would have meant something) but, other than that, he lived a fairly modest lifestyle. People (including his kids) knew he was well off and would always ask him, “Why don’t you go out and enjoy more of the trappings of your success?” His passion was the business he started at 21 and his reply was always the same: “You can only eat three meals a day.”

His work ethic and generosity shaped me more than I can say and I’m proud to share his vision with my own kids today. Miss you, Frank… you were truly one of a kind.

#133 PaulD on 10.31.15 at 9:57 am

Hey Garth,

People have been on here asking about debt, japan, etc. In terms of TFSA vs RRSP: is TFSA a better investment tool for millennials because taxes will be higher in the future? Due to retiring boomers, increasing health costs and debt burden?

#134 Missing the East Coast on 10.31.15 at 10:09 am

Hey 106 – my former employer treated me like complete dirt. Otherwise, I would not have stiffed them at all.

You know there is an “ass” in “assume”.

#135 Daisy Mae on 10.31.15 at 10:12 am

#63: “….which someone gouged in a parking lot…”

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

Happened to me, too. And BCs ‘no fault’ insurance has a deductible of approximately $750 so it’s useless. Now I park out in ‘the back 40’ like many others.

#136 Scathing Fraud Article in GLOBE on 10.31.15 at 10:17 am

Any thoughts Garth?

http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-fraud-on-the-rise-among-brokers-trying-to-help-clients-qualify/article27051297/

#137 Victory on 10.31.15 at 10:25 am

Mr Micawber’s famous, and oft-quoted, recipe for happiness:

“Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

Charles Dickens, David Copperfield

#138 Russ on 10.31.15 at 10:28 am

Love my Kia on 10.31.15 at 12:34 am
I had a hard time getting past the picture, they look a lot like samoyeds, just smaller. Beautiful dogs.
===================================

Hi Love,
I think they’re American Eskimo dogs. My folks had a couple of them and we brought them to our place for the summer we they toured across Canada.
Smart & beautiful is a good description of them.

http://dogtime.com/dog-breeds/american-eskimo-dog

And to the people who can’t understand living in a trailer, it’s a mind set to enjoy the freedom.

The freedom of spending less than you earn.
The freedom of being mobile (abode) if the situation changes.
Being much closer to the surroundings of nature, aware of the weather by the minute.

We lived aboard a sailboat for more than a couple of years and saved enough for 50 percent down a small house. I look back fondly on the time living aboard , not so much for the house.
The house was many for school and to socialize the kid.
(the socialized kid worked out, I guess, in the sense that he turned into a sheeple)

#139 Broke Dick on 10.31.15 at 10:30 am

So let me get this straight.
Ken- living in a trailer to save money=Good

Sherry-saving money=Bad

Ken-enjoying time and keeping costs down=Good

Sherry-enjoying time but not spending=Bad

#140 Broke Dick on 10.31.15 at 10:33 am

#106 Toidy Talent on 10.30.15 at 11:15 pm
#85 Missing the East Coast on 10.30.15 at 9:30 pm
Hey #58
Re: MBA – do it because you want to be the “best you you can be”, not because it will get you ahead, or be a good return on your investment.
I just did an Exec MBA. It was gruelling, but awesome. Fortunately my employer footed the bill and was not smart enough to handcuff me. I have left, and 6 months after completion am a CFO of a large company. So yes, full payback in less than a year. But really – I did it for me, and would have been happy with the sense of accomplishment if that was all that came out of it. Not all of my classmate’s are having the same result.
It was a hell of a sacrifice though – I work full time and am a mom. Losing 2 years of your life has got be be something you really want!”

What goes around comes around….you stiff your employer like that after they took such care of you and yet you are proud of it? Says a lot about what is wrong with the world today!

————————————–

That’s what they teach in Exec MBA

#141 Broke Dick on 10.31.15 at 10:40 am

#124 Cdn Mom on 10.31.15 at 3:05 am
Why the dump on Sherry, and disbelief that $2,500 a month is ok to live on?

Our starter home is paid in two years. About the same time the kids will be gone. Bills without the mortgage (current amounts):

140 property tax
217 insurance car x2 & house
65 nat gas
150 elec/water
20 phone
60 cable
60 internet
30 water heater
100 gas
600 food
100 misc

total $1542

————————————–
You forgot booze.

#142 chapter 9 on 10.31.15 at 10:43 am

#19 westcdn
I can’t believe Rachel is afraid of introducing HST in Alberta……. HST doesn’t have to be permanent….

The closest thing to eternity, are taxes and government programs!!

#143 Bottoms_Up on 10.31.15 at 11:13 am

Exactly Garth.

On your tombstone do you want it to say “they scrimped and saved like no other” or, “they lived life to the fullest”.

As with many things in life, balance is important.

#144 Bottoms_Up on 10.31.15 at 11:16 am

#97 Adam on 10.30.15 at 10:23 pm
———————
The point was then lost on you, as being careful not to live above your means in order to free up cash flow to provide for your family and actually live life is indeed living life to its fullest. An extra dining room or giant garage doesn’t pay for having your kid in music lessons or hockey.

#145 Doug in London on 10.31.15 at 11:25 am

Yes, I get it, life isn’t about existing frugally if it’s solely to accumulate wealth and live (more like exist) like Scrooge. One family that really understands this idea is on this blog: http://www.mrmoneymustache.com . They are proof that you can live a good life without spending a fortune. I actually found about that blog here, on this blog

#146 gut check on 10.31.15 at 11:49 am

Everyone is being a bit Judge Judgy McJudgerson here…

Living in a trailer with more disposable income and less concrete is a happy state of affairs for one person.

Living within a tight budget even when there’s more to spend is contentment for another.

One guy likes to be alone, revels in it!
Others like a life partner, fraught as that situation is.

Some want to travel, others can’t be bothered.

Indeed, this is what makes the world go ’round. I gag when I hear people insisting that they’ve found the ‘right’ way and that’s why they are going to be so happy and fulfilled and secure for the rest of their days. Those folks ought to check themselves before they wreck themselves. Myself included, I’m sure.

#147 DM in C on 10.31.15 at 12:15 pm

135

“Hey 106 – my former employer treated me like complete dirt. ”

Yeah, that’s cruddy of them to fork over $60,000 and give you Fridays off for an EMBA. And then you left 6 months later. Looks like you deserved some of that treatment.

#148 crowdedelevatorfartz on 10.31.15 at 12:18 pm

@#135 Missing the east coast

Your former employer “treated you like dirt” but paid for your executive MBA……and now your a CFO at large company making the “big bucks”. Hope it works out since you burnt the bridge behind you.
But dont be surprised if karma comes knocking.

#149 Ken Lovegrove on 10.31.15 at 12:25 pm

I remember a few years back being invited to breakfast at a restaurant by my Wife’s relatived in Vancouver. They wanted to buy my wife breakfast as it was her birthday. So she ordered from the menu . They sat there sipping water ordering nothing. The bill finally arrived. 15 dollars. They practically had a heart attack. I whipped out my credit card and paid it was so embarrassing. These people were so called wealthy home owners. You might be able to buy real estate. But you can’t buy class.

#150 Rainclouds on 10.31.15 at 12:34 pm

Would you prefer a concrete box in the sky with a bicycle locker in the basement? — Garth

Whoa dude! I get to use my neighbours pump which he is too lazy to take upstairs. Being a renter drone in a beehive DT Van has benefits…………..

Like Ken , thanks GT for this dose of amusing, highly informative, compulsory daily reading. You have set MANY of us on the right track for a bright and prosperous future.

#151 Still Empoyed in AB on 10.31.15 at 1:00 pm

Congratulations Ken!! What a wonderful feeling it must be for you and your family to be getting ahead.

This blog and the hard choices you have made provides an excellent example to your children. Life is not easy but regardless of how deep you bury yourself you can still swim to the top. Hopefully through this blog and family discussions your children will grow into wonderful and prosperous people as well. Not sure when I’ll be on the island next but I would love to buy you a beer.

On another note I can’t stand all the lefties pushing for free university. Every person in this country should be able to read first. If you can’t read you will never be able to profit from the free information on this blog and throughout the internet. Education comes in all forms!

#152 Ronaldo on 10.31.15 at 1:04 pm

#111 Bby604 on 10.31.15 at 12:25 am

”I see why gold is a dead asset class no yield or dividends but why does the ny fed have 7000 tons of it ?
Why don’t they sell it now ?”

Do you get paid dividends on your car or house insurance?

#153 JacqueShellacque on 10.31.15 at 1:05 pm

Almost all one really needs to know about money comes from Mr Micawber in David Copperfield:

“Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

The rest you can learn from Garth. He may not (quite) be a Dickens character, but he cuts quite a figure nonetheless.

#154 Jim B on 10.31.15 at 1:21 pm

Regarding Garth’s assertion that “No couple owns a nice house in an urban centre and lives well on $2,500 a month,” let me first say that my wife and I own (outright) a detached house three subway stops from Yonge and Bloor streets (Toronto core, for those who never watch 416-centric CBC). It’s modest in size (about 1,500 square feet) but could easily fetch, to be conservative, in the $800,000 range. My wife turned 65 just this past week, I’m nearly 62, and we’ve been retired since 2003 (no pensions, BTW, just our own modest portfolio plus CPP and OAS).

Our “basic” monthly expenses (property tax, insurance, hydro, gas, cable, internet, phone, street parking permit, garbage, water, hydro, gas, etc.) come to just under $1,500 (before food, although thankfully we don’t yet have a thirsty underwear budget).

All told, we live on approximately $57,000 annually (after tax) or $4,750 per month, nearly double what Sherry claims to spend. And while I wouldn’t say that we “live well,” we certainly live more than comfortably. So I’d certainly say Garth’s comment was right on the mark. I hope Sherry and her squeeze are happy, but I suspect she’s just lying (or deluded). Hope I’m wrong.

#155 Broke Dick on 10.31.15 at 1:24 pm

Garth, I would first like to thank you for helping me see the light and giving me the courage to take over my own investing.
Question for you regarding 60/40 split. Your examples usual are such that an investor is looking twenty or thirty years down the road. What if that said investor is currently retired and actually drawing down that nest egg.
Is it still 60/40? Even if the investor is trying to maintain a 7% return?

Have more than five years of heartbeats left? Then, yes. — Garth

#156 Millenial on 10.31.15 at 1:39 pm

Ken didn’t say he was investing that money in a balanced portfolio of ETFs at any point in his lengthy message to Garth. For all we know, his $18k is making 0.5% in a BMO SmartSaver account. I find this blog post muddled. Don’t buy, rent. Wait, don’t rent, live in a trailer park. Hold on, don’t live in a trailer park, check into homeless shelter.

#157 Bytor the Snow Dog on 10.31.15 at 1:40 pm

Ah, the hell with it! I’m going to spend it all on hookers and blow!

Either you get busy livin’ or get busy dyin’.

I might even let the wife come along.

#158 gumboot princess on 10.31.15 at 1:44 pm

When my lovely mother passed away I remember thinking about what is left when a person is gone. She wasn’t a wealthy lady and she didn’t have a lot of material possessions. I have some of her furniture that reminds me of her pleasantly throughout the day, but in time there will be no one living who knew her at all.

So one day my daughter surprised me by showing me a small tattoo that she had done on her arm. It was a copy of my mother’s handwriting from a card that her grandma sent her for her birthday. It says “I miss you more.” That is what they always said to each other on parting.

Maybe it is about why we would bother to miss each other at all. It comes down to small daily acts of kindness, integrity, vulnerability and having fun whatever way that is for you: expensive or otherwise.

#159 Jim B on 10.31.15 at 1:53 pm

#122 Mr. Yu

“Foolish stock chasers no different than foolish house buyers at nosebleed levels.”

– – – –

On 31 October 2000, the S&P 500 index closed at 1,429.40. On 30 October 2015, it closed at 2,079.26, an increase of 45.46% over the past fifteen years.

The average price of a resale home in the GTA in calendar year 2000 was $243,255. The average price of a resale home in the GTA in September 2015 is $627,395, an increase of 157.92% over the past (nearly) fifteen years.

Home prices in the GTA (and YVR) can reasonably be described as being at “nosebleed levels” (as Garth states almost daily). The stock market, not so much. Get your facts and figures straight before bloviating.

#160 Harbour on 10.31.15 at 2:11 pm

Okay this has to be the 5th time…

That friggin computer scam called this morning telling me my computer was infected with a virus. You know that scam…. I did the slow kid whose dad wouldn’t let him on the computer cause he was looking at bare naked ladies… bla bla bla, it took a while but the scam person with an accent finally hung up.

#161 hopejr on 10.31.15 at 2:38 pm

@#158 JimB

“Foolish stock chasers no different than foolish house buyers at nosebleed levels.”

– – – –

“On 31 October 2000, the S&P 500 index closed at 1,429.40. On 30 October 2015, it closed at 2,079.26, an increase of 45.46% over the past fifteen years.”

—————————————————-

I think you are missing the bigger picture here. Stocks crashed 50% from 2000-2002 then took 5 years to recover. Then another 50% crash in 2008-2009 with 7 years to recover.

FACT: 90% of people who “invest” in the stock market LOSE MONEY…. so 9 out of 10 grannies cashing in on their house to dabble in ‘quality stock’ end up losing their house and savings to boot.

Just let an experienced money manager handle it for you? They are morons who work for their companies bottom line (they don’t call their customers ‘muppets’ for no reason)

BTW, last crash 2008 EVERYTHING WENT DOWN DOWN DOWN….. commodities, blue chips, junk…everything. That’s what makes it a crash! Blood in the streets. Only the short sellers made money.

So now you’re assertion that someone who made 150% on their house should sell & dump it into a stock market that that’s up 310% (SPX 666 to 2050) in 7 years straight is a ‘smart’ thing to do?

Better to hold onto some liquid cash and buy when prices are low.

Equity markets rise 75% of the time. The only people who lose in market reversals are the fools who panic and sell. In any case, a balanced and diversified portfolio in 2008 lost 20% of its value for just a year, then recovered fully the next year and added 17% the year after. Investors who ignored it all did just fine. You provide a great example of why most DIY investors fail. — Garth

#162 Bill on 10.31.15 at 3:09 pm

Good one Garth!
Ya I need to spend a little more…
But we can live off $2500.00 a month easy….
Taxes Electricity ect $650 a month…
Grocery $1000.00
Vehicles electric. $75 insure $6 electricity.
Don’t drive the truck accept for work (part time)
I do all maintenance and repairs..So thats no cost.
$650k in house and extra property. Ive got 2 mil cash and not sure what the hell to do with it. Stock markets a joke. Property is stupid in this country….
What to do……We are thinking of moving to South America where its a cash society and guys like me aren’t paying for socialistic dead beats in this country.

#163 devore on 10.31.15 at 3:26 pm

#88 Sydneysider

back of envelope calculation suggests that one who travels at 2000 km/hr relative to Earth for all of his life would gain an extra hour of life relative to us.

No one cares about relative time. Time still passes at the same rate for you, so it doesn’t matter. Even if you manage to invent or buy time travel, you still won’t get to live 1 second longer.

#164 Ralph Cramdown on 10.31.15 at 3:29 pm

#160 hopejr — “FACT: 90% of people who “invest” in the stock market LOSE MONEY”

FACT I love the new style of prefixing or suffixing complete bullshit with FACT in the old days we had to use footnotes FACT but this new thing is so much more effective FACT.

#165 Freedom First on 10.31.15 at 3:32 pm

#115 I Love My Kia

I am glad I am not a hoarder nor a workaholic. Both are painful lifestyles. Hoarders and workaholics have no balance in life. No exception.

However, I Love My Kia, if you are unable to see this, I don’t care. I do care that I see it.

#166 devore on 10.31.15 at 3:42 pm

#97 Adam

I don’t know about the rest of you blog dawgs but living in an effing trailer isn’t my idea of living life to its fullest.

It is what he can afford while providing his family with maximum quality of life and enjoyment. Or he could live in a nice house, be penniless, and look forward to many staycations. Maybe that is some people’s idea of living life to the fullest.

#167 Bill on 10.31.15 at 3:47 pm

#160 hopejr on 10.31.15 at 2:38 pm
I was on here months ago stating that cash is king. Market smashes are predictable…Cash should be put to work when risk is low…Not when markets are screaming. IE Agellan was paying 9.2% when I was buying…
The TSE as a whole is a disaster. If you don’t subscribe to stockcharts you may not get my chart.
http://stockcharts.com/h-sc/ui?s=%24TSX&p=D&yr=2&mn=0&dy=0&id=p13101204280&listNum=1&a=419599383

Anywho these are not normal times. Governments are stupider every year. They think spending more will cure our ills..Hell lets keep interest rates at zero and really screw things. Cashless society here we come. Canada SUCKS…
https://soundcloud.com/cknw/why-you-should-care-about-economics-finance-business-comment-oct-30?in=cknw/sets/campbells-comment

#168 Bby604 on 10.31.15 at 3:48 pm

#151 Ronaldo on 10.31.15 at 1:04 pm
#111 Bby604 on 10.31.15 at 12:25 am

”I see why gold is a dead asset class no yield or dividends but why does the ny fed have 7000 tons of it ?
Why don’t they sell it now ?”

Do you get paid dividends on your car or house insurance?
—————

So gold is like car for the us fed?
Cool bro smoke another one

#169 Bill on 10.31.15 at 4:13 pm

167 Bby604 on 10.31.15 at 3:48 pm
LOL
You didn’t think that through bud….
Can you drive your gold to work?
And better yet why didn’t they sell at the top? I did….

#170 Russ on 10.31.15 at 4:17 pm

Ralph Cramdown on 10.31.15 at 3:29 pm

#160 hopejr — “FACT: 90% of people who “invest” in the stock market LOSE MONEY”

FACT I love the new style of prefixing or suffixing complete bullshit with FACT in the old days we had to use footnotes FACT but this new thing is so much more effective FACT.
=========================

Hey Ralph,

FACT: you forgot to use someone’s colon in the ‘fixin’ of your FACT rant. FACT:
:)

#171 conan on 10.31.15 at 4:17 pm

100 minus your age equals percent that should be in equities is what I was taught.
But then I sell segregated funds ( yes I know…. “Grief me”….. but you guys don’t understand how to use them for the most part) to people who want guarantees and draw an income at same time.
I have sold products that came with 5 percent notional guarantee. These were absolutely panned by the “experts.” These Guaranteed withdrawal benefit products are not sold anymore because they are a big money loser for the insurance industry
Anyone who did buy one should never get rid of it. You might need a different advisor, but that is all.
Most people use it for the conservative part of their portfolio. Bonds are not going to be hitting the numbers for a while, so these products that I refer to are constantly in guarantee mode and have zero fees because of that.
If the insurance company receives a transfer of assets notice from anyone holding a GWB product we zip the money out in hours.
Thank you for leaving…… etc.
Let the Grief begin…. Seg Funds? Seg funds? EWWWWWWW…. Whatever you don’t understand the situations where they are the best thing to be in.

Take a look at the fees associated with your seg funds. This is why the guy who sold them to you has a Porsche. — Garth

#172 Keith in Calgary on 10.31.15 at 4:21 pm

http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-fraud-on-the-rise-among-brokers-trying-to-help-clients-qualify/article27051297/

I didn’t read all the posts in the thread, so I apologize if today’s G+M article has already been posted, but it’s looking more and more like mortgage fraud is finally becoming public at a level that I always thought existed, and it now appears may be true.

#173 ROCK BEATS PAPER on 10.31.15 at 4:34 pm

#3 Sean
The blog is insanely noncommercial. Emphasis on insane. Garth, I think you are mising out on an opportunity to have a donations button (for a charity?).

#160 hopejr

Garth, I am in agreement with your tips to buy those assets that have been panicked out of, like pref shares when they are down 25%, and perhaps the commodities stocks now. However, unlike previous crash times, the “safe” stuff was not ending a 35 year epic bull market. Yields will not continue down for the long term. So I do not think your textbook portfolio will service you well for the next 10 years. Bonds and Stocks are simultaneously over valued.

Of course there is always NIRP!!!

#174 TurnerNation on 10.31.15 at 4:51 pm

Is Kanada moving toward a One Child Policy?

(Keeping in mind, we as a declining industrial economy, get economically bombed. (500lbs only goes to overseas to areas which will support new corporate takeovers)).

I know of a couple, one person’s entire bi-monthly pay cheque each month goes into Daycare costs.

This leaves 1.5 salaries for everything else. Knock off 1k for food, 1k for a car, 3k+ for living costs each month, plus another 1k for highest cell phone/tv costs, and insurance, fun etc.

A small Kando could barely support 2+ kids anyway.

They’ll stone you just like they said they would.

#175 crowdedelevatorfartz on 10.31.15 at 4:53 pm

@#161 Bill
“Ive got 2 mil cash and not sure what the hell to do with it. Stock markets a joke. Property is stupid in this country….”
+++++++++++++++++++++++++++++++++++
Great idea. Cash it all into $100 US currency and put it in a knapsack and head to South America.( just make sure the flight doesnt stop in the US or yer gonna have a lot of ‘splainin” to do hefe).
Dont know why other Canuck millionaires havent thought of it.

#176 pinstripe on 10.31.15 at 4:56 pm

In Alberta, the WRA (CPC) is worse than their fed harpo CPC counterpart. If this type of behaviour is any indication of the future, the NDP will be in power for a long time. Enough is ENOUGH.

http://www.cbc.ca/news/canada/calgary/wildrose-budget-response-1.3298180

#177 pinstripe on 10.31.15 at 5:04 pm

Why is this blog so determined to TELL other people what they should do with their hard earned money.

Harpo and all the CPCers took that approach at the federal level and the last election told harpo where to go.

It works best long term to allow people to make their own financial decisions. some will be good decisions and others will be bad decisions. that is how the financial cycle works. there is no guarantee moving forward.

Everyone needs to build their own nest. Outsiders need to mind their own business and look after their own nest.

#178 Stevladimir Harputin on 10.31.15 at 5:08 pm

I do hope you will be coming by for trick-or-treat tonight, Garth. You know where I live.

I will have some special treats just for you.

Juicy, crunchy apples.

Loaded with razor blades of revenge, pins and needles of partisan potshots, and delicate medicinal capsules of ethnic race-baiting.

Hmm. Apples. Bet you can’t wait to take a bite already.

Trust and obey.

#179 Washed Up Lawyer on 10.31.15 at 5:11 pm

Five hours until I have a religious experience up here in Ft. Mac.

The Hand of Gaud (reau) vs. McMoses. On CBC. 11:30 in Nfld. High above centre ice in the gondola.

At least today I will remain on topic. FACT, the Flames are FUCT.

#180 jess on 10.31.15 at 5:24 pm

is it better late than never? yates memo from 17 years past

NEP’s Bill Black appears with Richard “RJ” Eskow on the Zero Hour discussing the DOJ’s change in stance regarding prosecuting elite white collar criminals.

http://neweconomicperspectives.org/2015/09/if-the-justice-dept-wants-to-punish-corporate-crooks-heres-how.html#more-9729

#181 Broke Dick on 10.31.15 at 5:24 pm

#178 Washed Up Lawyer on 10.31.15 at 5:11 pm

At least today I will remain on topic. FACT, the Flames are FUCT.
—————————————————

It looks good on Burke. The A hole

#182 maxx on 10.31.15 at 5:56 pm

#38 Gulf Breeze on 10.30.15 at 6:37 pm

“My father was frugal……..

This kind of thinking can be pathological, sort of OCD. I live in an area where frugal types predominate. So, let me paint a picture for you. If it’s free, they’ll take it…….

And it’s only getting worse. Because ‘frugal’ boomers aren’t getting rid of their piles of debris, PLUS, they have inherited objects from their parents they have sentimental attachments too. Okay by me, if it doesn’t end up on their front lawn.

So boomers, get rid of your sh** and if you want to do everybody a favor, including the planet, don’t buy what you don’t need, but definitely go out to eat, get massage therapy, travel, donate to charities, help out worthy individuals in your community, who need low interest loans, when their cars break down. And when you are eating out, tip large. To tip large IS a way of living large. Go ahead. Make someone’s day. Part with some of that dough.”

Crude and clumsy segue to targeting boomers as pathologically frugal.

WADR to all dawgs who see the world in mid-tones, typical black and white thinking seems prevalent on the blog today.

Frugality does not necessarily mean cheap, miserly or unhappy. Frugal can be fun! :-) Boomers have no more sh** than any other demographic stratum, are often generous to a fault and will happily tip when the service is good. Otherwise, sh**ty attitude can simply stuff itself. “Worthy” is as “worthy” does.

Many frugal types have max-ed out everything in sight, spend months per year traveling and don’t give a rat’s behind about padding the wrong pockets.

Frugal types who never spend may have an extreme fear of being poor in a money-driven society and that’s understandable. If they make a conscious decision to trade some quality of life for security, so be it. It’s their choice. One investment size does not fit all. Many who have more than enough to live on do not want nor need risk. Sleep is a great underrated commodity worth investing in.

Balance is a wonderful thing, not often achieved. I know many who have huge income and are mostly always in a panic because they spend beyond their means. I also know many who earn far less, yet are perfectly happy because they have learned how to meet their needs and wants whilst taking care of their savings.

#183 praire person on 10.31.15 at 6:02 pm

Calgary Herald Analyst Arthur Grayfer of CIBC said in a note to investors that Husky’s decision to pay dividends in shares instead of cash could result in a six per cent dilution if carried on through 2016. He also highlighted Husky’s planning assumption of US $40 per barrel for West Texas Intermediate and $3 per thousand cubic feet for Alberta gas for the next two years.

#184 eddy on 10.31.15 at 6:08 pm

Mortgage brokers using fake employment income ?
So if johnny paycheck stops paying his loan, the bank owns a house.
It’s called free real estate. Show me the lender’s risk, I’ll save your time, you cant.
The culture of lies is top down.

#185 Bill on 10.31.15 at 6:14 pm

#174 crowdedelevatorfartz on 10.31.15 at 4:53 pm
I have friends from Alberta down there. They love it and its safe. Their beautiful Condo is $160 all in monthly..
I love a cash society and buying things at the market is cheap. Who the hell need multi million dollar stores to buy and avocado. Wining and dinning is $20 FOR 2! There are few safe stable places to go but there are a couple where Gov isn’t pissing your money down the drain and lying to your face. 20% middle class in Canada pay 40% of the Taxes.
There so much Bureaucracy to run a business here its pathetic. EVERYTHING it illegal. I have to take out a permit to burn leaves on my LARGE property. F##K that…
We ain’t Rich but $3mil will do it down there. Canada is over hyped. Like Beautiful British Columbia. Bring Cash!!
Our politician sell us down the river one after another. Like Campbell did the piece of crap.
I’m going to knock someones teeth in. LOL
If you emancipate your self from Canada and invest your loot with a 7-10% off shore that’s tax free. $175,000 cash a year is a party. You can still be a resident here and its all legal…If you think premium health care is expensive down there its not….It sure the hell is here and get in line!
Serious food for thought.

#186 ROCK BEATS PAPER on 10.31.15 at 6:56 pm

167 151 111

Gold does have a “yield”. It is called the lease rate. There is also a forward curve on it.

When you have cash under to mattress, it has no yield, same for physical gold. When you deposit the cash, you can get yield and similarly you can lease out your gold and receive distributions.

#187 Freedom First on 10.31.15 at 7:11 pm

#176 pinstripe

You are proof positive that stupid is as stupid does.

Too bad about those nasty consequences, eh, pinstripe.

This Blogs for you.

#188 TurnerNation on 10.31.15 at 7:21 pm

My rental kando has Zipcars in its basement.
I get to flog a new econobox through its paces for the cost of 2 pints an hour. Pick up 15 minutes earlier if not booked then.

There’s no replacement for displacement.

#189 mitzerboy aka queencity kid on 10.31.15 at 7:23 pm

happy samhain everybody …
we all gotta die once in awhile to really live

#190 old gringo on 10.31.15 at 7:35 pm

Can’t recall living on $2500 a month north of the border. But here in good ole Mexico that would include all home expenses, regular dining out at very nice restaurants, pool, spa cleaning, maid and gardener and still allow gas, insurance for both cars, medical and vacations.
Lot’s of expats live on less but “we’re too old to drink cheap wine”.

#191 kommykim on 10.31.15 at 7:49 pm

RE:

#159 Harbour on 10.31.15 at 2:11 pm
Okay this has to be the 5th time…
That friggin computer scam called this morning telling me my computer was infected with a virus.

I used to get those calls a lot. Then one day I downloaded Oracle VM virtual Box, installed windows on it, encrypted some useless files and named them banking info and put those on there too. Then I waited.
When they called I let them onto the VM and let them root around while randomly dropping the VM network connection. Kept them busy for 45 minutes until I got hungry for supper, confessed to screwing with them and hung up. They’ve never called back since.

#192 Daisy Mae on 10.31.15 at 7:54 pm

#157: “Maybe it is about why we would bother to miss each other at all. It comes down to small daily acts of kindness, integrity, vulnerability and having fun whatever way that is for you: expensive or otherwise.”

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

THAT post was beautiful. Thanks for sharing.

#193 kommykim on 10.31.15 at 8:06 pm

RE:

#124 Cdn Mom on 10.31.15 at 3:05 am
Why the dump on Sherry, and disbelief that $2,500 a month is ok to live on?

Because so many have bought into consumerism that they cannot fathom anything else.

#194 Love my Kia on 10.31.15 at 8:11 pm

So let me get this straight.
Broke Dick;

Ken- living in a trailer to save money=Good

Sherry-saving money=Bad

Ken-enjoying time and keeping costs down=Good

Sherry-enjoying time but not spending=Bad
********************************************
Exactly! They’re both happy so who cares?

#195 Daisy Mae on 10.31.15 at 8:17 pm

#163: “FACT I love the new style of prefixing or suffixing complete bullshit with FACT in the old days we had to use footnotes FACT but this new thing is so much more effective FACT.”

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

Ralph, you’re great! LOL

#196 Nora Lenderby on 10.31.15 at 8:59 pm

#103 Millmech on 10.30.15 at 10:54 pm
Left a great paying career to move to the north Okanagan for 50% less money but way more time off,truly priceless.

And you’ll probably live longer as a consequence! Good decision, although it’s not for everyone.

Hard to do if you are working for the mortgage, as it were. :-)

#197 Nora Lenderby on 10.31.15 at 9:10 pm

#176 pinstripe on 10.31.15 at 5:04 pm
Why is this blog so determined to TELL other people what they should do with their hard earned money.

Because the majority of people are not born financially smart (unlike you :-) and need reminding, nagging and given worked examples of what can, and does, go wrong (and right…Yay Ken!)

…It works best long term to allow people to make their own financial decisions. some will be good decisions and others will be bad decisions. that is how the financial cycle works. there is no guarantee moving forward.

Once more, it would be far better if people didn’t spend 20-30 years of their lives not saving anything, until they start to panic about retirement. Better for the individuals and, frankly, better for the financial services community if everyone would save and feel that this was an imperative.

Everyone needs to build their own nest. Outsiders need to mind their own business and look after their own nest.

So, when a majority of seniors are on the cat food diet, (or worse; dog food is much lower protein) those of us who have the means will be obliged to contribute to remedy the situation.

Wouldn’t it be better to educate everyone in a timely manner?

#198 Ronaldo on 10.31.15 at 10:13 pm

#167 Bby604 on 10.31.15 at 3:48 pm

”So gold is like car for the us fed?
Cool bro smoke another one”
————————————————

Kinda figured it would go over your head.

But if you want to get dividends with the gold producers just buy HEP and get nice juicy dividends while you wait for share prices to recover. I bought it at 3.39.

#199 45north on 10.31.15 at 10:27 pm

Toidy Talent: referring to Missing the East Coast:

I just did an Exec MBA. Fortunately my employer footed the bill and was not smart enough to handcuff me. I have left, and 6 months after completion am a CFO of a large company.

What goes around comes around….you stiff your employer like that after they took such care of you and yet you are proud of it?

that was my reaction at first but then realized his employer got a bargain: for $40,000 they found out his true colours

#200 TurnerNation on 10.31.15 at 11:20 pm

I wonder if anyone did a Greaterfool/GT haunted house theme at their home this year.

Terrifying effigies hanging from a porch: [email protected], Poloz, A Corrupt Mortgage Broker.

House plastered with horrific signs:
Overvalued
Bubble
Slanty Semi.

A Bandit-like dog lunging at bidding war-riors.
A H-campaign sign on lawn.

#201 Sudsmeister on 10.31.15 at 11:23 pm

I think Bombardier needs to get out of the brewery business and focus on planes if it wants to succeed….otherwise the engineers sites may be obscured by beer goggles…

http://www.cyclopsbeer.co.uk/beerimages/pumpClip358.jpg

#202 Smoking Man on 10.31.15 at 11:31 pm

One year ago today, we layed my nephew to rest, and I held my moms hand when she went to the other side.

She was born on Valentines day, and left on Halloween.

She loved Halloween.. Giving stuff to kids…

RIP mom, and Mark.

We all miss you

#203 Nagraj on 11.01.15 at 2:06 am

Harper’s Hallowe’en.

Ding dong. Laureeny opens the door. (Again. It’s been ding donging all evening. Most of the trick-or-treaters were wearing JT masks, or Duffy masks, or Mulcair masks, even Wynne masks, so Harpo got queasy and went upstairs to lie down, the guy done up as GT was the last straw for poor old Harpo.)

This time it’s six teenagers in niquab. (High School boys.) Instead of saying, “Trick or treat, Mrs. Harper”, they just ululate.

Laureeny thinks this is a hoot and gives them extra candy. But just as they’re walking away, she has an idea: she buys a niquab off one guy AND asks them if they could teach her to ululate. They give her a quick lesson.

. . . . . . . . . . . . . . . . . . . . . . . .

Harpo becomes aware that Laureeny’s gotten into bed, sleepily he mumbles, “Is it all over?” But Laureeny answers not.
He speaks to her a few more times, but she answers not.
Sensing that something’s amiss, Harpo turns on the bedside lamp. Laureeny – in niquab – sits bolt upright and goes, “ULULULULULULULU !!!”

. . . . . . . . . . . . . . . . . . . . . . . .

The first responders had quite a time gettin’ him to stop hyperventilating.

#204 crossbordershopper on 11.01.15 at 5:13 am

many people live on 2500 a month, no problem, my wife and small child have scrapped by on as little as 1200 a month. its simple, no money no impulse to buy. litterly millions of people in canada, pensioners, students, and in ontario the number of people working for 15 bucks an hour or lower is like 30% of the entire population.
who would hire someone for more, you can get line up of people for 15 bucks canadian an hour.
we are in a recession, for many of us, millions of people like me, its always been a recession. without money, even with education, poor job prospects, we are not going anywhere.
sure some people live in expensive paid for hourses, who cares, in Canada simply get a cheque from the goverment when you retire and never save a dime. Thats my plan, then again, i dont make any money to save so
so just like 100 generations before us, everyone was hand to mouth, no real difference. sure big screen tv, and cell phone, fresh fruit available year round and free health care and basic high school education great. otherwise it hasnt changed in hundreds of years.
happy halloween, free candy.

#205 When will they raise rates? on 11.01.15 at 7:54 am

#186 Bill on 10.31.15 at 6:14 pm

What country, if you don’t mind me asking, Bill?

#206 When will they raise rates? on 11.01.15 at 7:59 am

#200 45north on 10.31.15 at 10:27 pm

that was my reaction at first but then realized his employer got a bargain: for $40,000 they found out his true colours
——————
^ This.

But to be fair, it’s a two way street. There’s not a lot of loyalty out there on the part of employers these days either… I’ve known many people who were discarded like snotty tissues after years of loyal service to an employer. Gone are the days of having one employer over the course of a career. It’s everyone for themselves.

#207 Bank of Millennial on 11.01.15 at 8:30 pm

“I don’t know about the rest of you blog dawgs but living in an effing trailer isn’t my idea of living life to its fullest.”

Buy a sailboat and drop anchor outside of Toronto, its even cheaper.

#208 Gen X Confessions on 11.01.15 at 11:46 pm

#140 Broke Dick on 10.31.15 at 10:30 am
So let me get this straight.
Ken- living in a trailer to save money=Good

Sherry-saving money=Bad

Ken-enjoying time and keeping costs down=Good

Sherry-enjoying time but not spending=Bad

———————————————————

The difference is that Sherry is hoarding her money for no particular reason other than frugal-bragging rights, while Ken is investing for the future. Sherry is in the later years and the hoarding doesn’t benefit her while Ken is younger will reap the rewards of compound interest.

In other words, Ken is finding a way to lift his family out of poverty – moving forward, while Sherry is voluntarily stagnating.

There are a lot of other things for wealthy Boomers to spend money on other than crappy stuff and McMansions. There are also charities, entertaining friends and family, travel, higher quality/healthy food, etc, etc.

So is your frugality for investing or hoarding?

#209 Aliloo on 11.02.15 at 9:51 am

Huh, sounds a lot more like “the way you live can’t possibly make you happy, here let me fix you”. The same situation won’t make everyone content, and everyone has their own idea about what they want towards the end of their life. If you have no real costs, family or debt, why not save your money? Maybe you have no immediate plans, but if you want to do something spontaneous the funds are there.

#210 Julia on 11.02.15 at 12:04 pm

Our family dog growing up was a samoyed. Lovely pet.

#211 Milla on 11.02.15 at 1:26 pm

#209 Gen. Well, about Serry. Just stop it please. How do you know what is the best for her? The best activity for me ,as a sample,is hiking in forests and mountains and painting landscapes. Pay me money to fly to Europe or Mexico. Thank you, no, I hate airplanes restricted crowded space, and overused hotel beds. So my best hobbis are pretty cheap, it does not mean that I do not have my joy in my life. I will perfectly survive for 2500$ per months and do what I like to do, and not what Snobs dictate. Also if you cook and your friends do not drink much and share your interest in hiking you can enjoy good company all year around for very moderate expenses.

#212 praire person on 11.02.15 at 1:35 pm

RITCHIE BROS. TO SELL 3,800+ ITEMS IN FINAL HOUSTON, TX AUCTION OF 2015; 75+ CRANES, 255+ TRUCK TRACTORS AND MORE WILL BE SOLD IN NOV 11 – 12 UNRESERVED PUBLIC AUCTION

#213 Bill on 11.02.15 at 3:15 pm

#206 When will they raise rates? on 11.01.15 at 7:54 am
Well There a few to choose from. Urguay, Panama and Ecuador were our choices.
All with pretty stable Govs and easy to Immigrate. All in USD. They don’t even know what loonie toilet paper looks like.
Pick one ;-)