The unexpected

PLAYPEN modified

Fifteen years ago, when I was a lad with rock pecs and a hot wife (still is), I made considerable money writing books about RRSPs. People actually bought them. By the thousands. “We’re printing more,” my publisher told me one day in her sultry, Bohemian tones. In fact, there was a new Garth Turner RRSP book every year for a while, which you can imagine was quite a feat.

But these things seem sexy no more. Shelves no longer groan every winter under new financial tomes. Poor displaced, homeless authors now congregate beneath bridges and behind Timmies’, keeping warm beside smoky pyres fueled with the curling pages of retirement guides. It’s tragic. I hear some guys completely lost it, and started blogs.

So why have we stopped putting money into these things? (The deadline for contributing for 2015 was Monday.) Ignorance seems a key factor. Despite RRSPs having been around for six decades, tons of people know little. An H&R Block survey found half of Canadians glaze over and profess ignorance at the mere mention. Another poll by BMO found 41% say they don’t understand RRSPs, so don’t play.

Then we have the TFSA dilemma. Thanks in part of T2 and his myopic chopping of contribution limits, tax-free accounts have seized a lot more mindshare than RRSPs. These new accounts have been embraced more by the young, despite the fact 80% of them stick money inside a TFSA into dead-end GICs or cash savings deposits. Then we have the nihilistic what’s-the-point? attitude so prevalent today among people under 40, who think retirement saving is futile because we’re all going to fry or drown thanks to climate change. Either that, or Justin will give everyone a better pension and a pony. So why bother?

Finally, RRSPs have dropped out of favour because we’re all house horny, real estate is crazy expensive, there’s no money left after buying some, and saving/investing is hard and scary. Getting property is easier. Your mom approves. And how can you show off liquid assets to friends? They just don’t care.

As a result, the average RRSP contribution, among the reduced number of people making one, is just a little over three grand. Peanuts, considering the government will refund the taxes you paid to earn that amount.

So, there’s a strong case for making sure you fund RRSPs and continue to do so throughout your lifetime. Plus, you should not consider them retirement vehicles, because they’re not. They let you shift taxes around during your working life, with funds accessible anytime – not only after you start resembling an antique leather couch.

For those who forgot, money placed in TFSAs is cash already taxed. You can remove funds without reporting them on your tax return. So, the income doesn’t push you into a higher tax bracket nor imperil any means-tested government pogey like CPP or OAS. Everybody should have one of these and keep it fully-funded, fully invested and absolutely intact for retirement – when the benefits will be awesome. Imagine a $700,000 TFSA churning out fifty grand a year in tax-free income, allowing you to still collect a public pension, free drugs and discounted bladder-control undies. Yahoo.

The RRSP, on the other hand, is a tool for shifting the tax burden from one year to another during your working career, or for splitting income (and taxes) with your spouse since you receive a refund from taxable income for contributions made (unlike the TFSA). So, naturally, it makes sense to contribute heavily in years you earn good coin, and to withdraw from the pot in years you don’t.

That could be a sabbatical to nurture homeless donkeys with your children’s inheritance, or a time to go back to school (you can borrow from the plan, tax-free for that), or perhaps it’s when you get punted from your job for being a whiny, needy Millennial. Whatever. The point is the feds will refund up to 50% of the money put into an RRSP and the same money can be withdrawn later at a fraction of the tax if you earn less. So everyone in 2016 should have an RRSP. It’s an uncertain world, after all. Pay less now. Build a personal unemployment fund.

As mentioned, RRSPs also let you income-split with a less-taxed spouse. Contribute to a spousal plan, deduct it from your own taxable income then your partner (after three years) can withdraw at a cheaper rate. It’s a great way to finance a mat leave, or a university gig. You can also make an RRSP contribution without money, by transferring existing investments into an account (called ‘contribution in kind’) – which means the government sends you money for selling yourself assets you already own. (How cool is that?)

Plus an RRSP loan makes sense, since you borrow money, contribute, then get a tax refund to pay the loan down. It’s like achieving an instant 30% return on investment for most people. Or, just contribute with money you’ve saved, then use the refund to top up your TFSA.

There’s more. Like putting your mortgage inside your RRSP and making payments to yourself. Or creating tax-free RRIF income when you finally turn 71 and have to cash out. But we’ll leave the extra kinky stuff for another day.

The point is, RRSPs rock. Mercy. I’m aroused just writing this.

164 comments ↓

#1 Freedom First on 02.29.16 at 6:50 pm

Hello!
I have been very busy since Fifty Shades with a Feminazi as SM suspected.

FIRST!!

#2 blaine monaghan on 02.29.16 at 6:55 pm

Sorry Garth, just wanted to quickly address yesterday’s post, which contained the following quote,
“People are correct to perceive there is a serious problem with the housing market,” says blog dog Joe, “but incorrect to believe the solution lies in government intervention. A better solution is to let the market sort itself out (interest rates normalizing) and for people to make better financial decisions, painful as that might be.”

Do you think that the CMHC is a form of government intervention? And, if yes, should it be abolished?

#3 MoneyMyHoney on 02.29.16 at 6:59 pm

Question for the knowledgeable among you:

Down the lane, if a set of countries or the world in general decides to ditch the US currency, which all non-US currencies may go up in value?

Give your reasons. Does it involve the debt load of a given country? Does it involve the debt to GDP ratio? Does it involve the gold reserves? Does it involve their per capita income or population or productivity or resources?

I have a feeling that the inevitable may eventually happen. In that case… wait… before that happens, what should the basket of currencies be?

Please state your logical reasons. No conspiracy theories and no vested interest please.

#4 MoneyMyHoney on 02.29.16 at 7:00 pm

Bonds to Vagabonds

The idea that Garth presented that US is on the upswing may not hold much water as there are a bit too much of unresolved issues. Printing 85 billion dollars a month did some temporary good. It may just be temporary.

#5 Testy McTesterton on 02.29.16 at 7:00 pm

I’m a little surprised to see you waxing poetic about RRSPs. It’s nice to see a little RRSP love.

Although, I’d be curious what threshold of income you’d generally consider a good idea to contribute. 120k? 100k? 80k? 72k?

#6 Gregg on 02.29.16 at 7:01 pm

“As a result, the average RRSP contribution, among the reduced number of people making one, is just a little over three grand. ”

I make decent money for the phone company (~90k last year) and I max out my RRSP every year (into a spousal). My limit: “just a little over three grand” due to the Pension adjustment nonsense brought in in 1990.

Garth – did that have your fingerprints on it??

#7 Moist Coast on 02.29.16 at 7:02 pm

This is a post defending ageism policy attacks against the young.

Here is what the the young need to do in Vancouver:

1) If you are a professional without millions in family backing, relocate to the United States via the TN Visa. Do the math, you will be much better off.

2) If you are young, not a professional, and nots lots of money, then get a subsidized education that allows you to emigrate.

The way the system is set up in YVR is those with gazillions in Real estate holding pay zero tax and enjoy all the amenities. No MSP premiums, Free education, Discount Community centre passes, no commuting, etc.

The young that work have to pay all these fees while not having gazillions in RE.

The ones that have it best are wealthy recent immigrants. No taxes paid here but all the amenities.

This will end come hell or high water.

#8 Deaner on 02.29.16 at 7:06 pm

Hey Garth , just wondering If I have a fully indexed defined contribution government pension (yes I know I’m lucky) and are maxing TFSA’s should we still be concerned about putting money in an RRSP ?

#9 Brett on 02.29.16 at 7:06 pm

RRSPs and TFSAs do rock. Unfortunately, the majority of Canadians are morons and would prefer to pay tax and then buy a house and pay more tax. These same people might re-up the GST to 7% if someone told them their OAS would increase because of it.

#10 tundra pete on 02.29.16 at 7:06 pm

Just wait and see what happens to CMHC. It wont be pretty. When you thought you had extra for the tfsa, this will be required to pay the bail out to cover CMHC scandal.

#11 Rick on 02.29.16 at 7:12 pm

Oil up again today SM:)

Hope you got out:)

Going to $40.00 plus.

#12 james on 02.29.16 at 7:12 pm

#2

“Do you think that the CMHC is a form of government intervention?”

Of course it is. It is intervention of the worst sort. Ostensibly designed to help home buyers, it actually provides subsidized insurance to the banking cartel. Moral hazard aplenty.

It is like most ‘progressive’ government programs. While looking amenable on the surface it has pretty profound macro level impact. It is easy to game, easy to capture and operating far beyond the original purpose for which it was introduced.

#13 TurnerNation on 02.29.16 at 7:13 pm

Looking at the larger trend is this all to help herd people into cities, get them off their land (see: Vietnam/Laos/Cambodia war for sweatshops) into tiny “agenda 21” sky boxes?
Say it ain’t so.

“As detached home prices soar, first-time buyers turn to condos
The Globe and Mail – 21 minutes ago
The average first-time buyer in Vancouver now needs more than a decade to save for the minimum down payment on a house under tough new federal mortgage rules, a sign that affordability in Canada’s most expensive cities has reached crisis levels.”

#14 Jimmy on 02.29.16 at 7:13 pm

-Urinals with plants
-Perfect woman in jeans
-Now the dog

Please bring back pic 2!

#15 GenX on 02.29.16 at 7:14 pm

The role of the government needs to be revisited.
Most people assume that a society is a complicated system. This is not an accurate assessment. More appropriately, the society is a complex system.
One can only monitor and describe a complex system, but cannot control it.
Any governance attempt on a complex system will only lead to distortions, which will snap back at one point in the future with a slingshot effect.

My 2 cents for today.

#16 Winterpeg on 02.29.16 at 7:18 pm

Right now I “dollar cost average” in my contributions to both TFSA and RSP monthly. So might it be better to borrow from my HELOC (3.25% interest) to lump sum my RSP and then increase my monthly contributions to my TFSA?

#17 Love my Kia on 02.29.16 at 7:21 pm

Why not write a book about TFSA’s?

I know lots of people who love them but aren’t aware they can be used for more than GIC’s and savings accounts.

#18 Doug t on 02.29.16 at 7:25 pm

Many moons ago it was Canada savings bonds were the thing – then rrsp’s became the thing – now because of HGTV, banks, realators and mortgage groups people salivate for granite couNter tops and will dive soooo deep into the debt pool it’s scary. Peeps these days don’t think about tomorrow – they want what they want and dammit they want it now. Saving is boring to them – why save when you can have 5 credit cards, a couple lines of credit and money from the folks. And hey money is cheap and everything just keeps going up up up – meh

#19 Ray Skunk on 02.29.16 at 7:29 pm

20g’s in my RRSP today, to add to my regular, matched, payroll contributions. TFSA already maxed, naturally.

Not saving enough for my retirement? Up yours, Wynne.

#20 Godth on 02.29.16 at 7:30 pm

I think people might be broke – what doya think? Geez, talk about not not seeing the forest for the trees, or the trees for the forest – it’s all clear – cut now Garth. Blood from a stone buddy.

Reality bites, and bites back hard. Broke is broken, kinda like the global ponzi.

#21 zee on 02.29.16 at 7:30 pm

Yeah RRSP rocks

Good way to move around taxes.

#22 Victoria Dead Market on 02.29.16 at 7:32 pm

Stone cold dead.
Next door house listed Feb. 26th @$825K.
SOLD! Feb.28th.
$185K over ask.
Cubicle dweebs with Disney calculators have no idea what’s happening.

#23 Russ on 02.29.16 at 7:34 pm

Okay. It is different here.

I played with the Turbo free online RRSP deduct calculator.

income: 130,00
tax paid: 35,000
RRSP contribution: 25,000 (to keep it simple)

Refund by Province:
BC 8,552
AL 7,598
SK 5,227
Man 2,713
Ont 6,126
Que ,894
NB 3,277
NS 2,260
PEi 2,517
NFy 5,227

Imagine working Alberta in the heyday and having BC as province of residence?

Cheers, R

#24 Harbour on 02.29.16 at 7:36 pm

#9 Brett on 02.29.16 at 7:06 pm
RRSPs and TFSAs do rock. Unfortunately, the majority of Canadians are morons and would prefer to pay tax and then buy a house and pay more tax. These same people might re-up the GST to 7% if someone told them their OAS would increase because of it.
………………………………………………………………………

Because you can’t lose in the Canadian housing ponzi.

We’ve been blogging about it ending for the last ten years and if you sat on the sidelines waiting for the end you were priced out.

#25 Frank Blood on 02.29.16 at 7:38 pm

If one has a mortgage inside the RRSP…should that be included as part of the fixed income allocation, or should the growth/FI ratio exclude the mortgage?

#26 David Lee on 02.29.16 at 7:44 pm

Was just watching “The Exchange” and Craig Wright (RBC Financial) was asked what could trigger a quick rise in interest rates. He replied that he doesn’t see that happening globally and that deflation is more of a concern.

DEFLATION!!

I know Mark doesn’t engender much respect here by providing his opinion on everything under the sun, but it’s looking more and more like he may be right.

#27 common sense on 02.29.16 at 7:45 pm

#21 Godth

You got it my friend…most are broke from being in debt over their eyeballs…

Again I ask, when these bubbles all come down and bills need to be paid by the gov’t, who’s money are they coming after in the form of higher taxes and clawbacks?

I can only say OURS who’s net worth they CAN see if RRSP, TFSA, etc balances…hide some cash people.

#28 Giser on 02.29.16 at 7:49 pm

Amen Garth to the RRSP.I put the max contribution in from my late 30’s.I now have a monthly income in retirement that rivals many of todays wage earners. Yes I pay deferred income tax on it ( just sent CRA back my entire 2015 government pension and then some) which turns my stomach when I see Trudeau 2 and his clowns spending it like fools fools, but that’s Canada. Thinking about going somewhere warm and taking my RIF with me.

#29 S.Bby on 02.29.16 at 7:49 pm

#23 Victoria
Rule of thumb:
Take the BC Assessment and add $250K for 2016.

#30 Scumop on 02.29.16 at 7:50 pm

My mate reminded me her momma (many years gone now) did not trust rrsps because they sucked tax on cashing them in. She had a very low income, so realistically as a retirement thing, the taxes saving would have been less than than the taxes paid on cashing out decades later.
A TFSA would have been perfect for her, but unfortunately did not exist at the time.

So instead, in a safety deposit box, lived a wad of $1000 bills accumulated over several decades, eroded by inflation.

She was right about the rrsp not being right for her, but really did not understand why. I suspect a lot of people mistrust everything, and so don’t contribute to an rrsp (which in most cases makes sense) or a tfsa (which in all cases makes sense). Its mistrust based on ignorance, often carefully cultivated by listening only to people who agree with them.

Its hard to get past that, and convince someone who could benefit that they would benefit, and how to take action. Its like a cultural (on some level) fear of numbers and, in the frame of tfsas and rrsps, what is realistically only basic arithmetic. “Too complicated!” Or mistrust of the government (its not your friend, but its not your enemy either).

Think of all the horror stories available now, after a year of declines and losses for many. Anyone not trusting rrsps, tfsas, or direct investments a year ago is even less likely to today.

Contrast those stories against the ‘get rich quick in real estate’ stories floating around.

Many of us here know better. Can make sense of it. But we, regardless of income, seem to represent some kind of knowledge elite. And who would want to listen to those kinds of people? Me, but then I do know a thing or three. The ones who most need to listen will not. Its all those people who fall for get rich quick schemes and all those people like my mates momma who just don’t have the knowledge or willingness to acquire it, or those who can not or will not listen for `cultural` reasons.

Maybe its best to just let evolution run its course. Or maybe not, since other people’s ignorance… Let me rephrase that… what other people don’t know can hurt you.

Enough of my ramblings. Walking Dead awaits on the pvr, and beers are in the fridge.
Imagine the followers of real estate as the zombies, and Garth Turner playing Rick trying keep his tribe from getting eaten by the horde.

#31 wallflower on 02.29.16 at 7:54 pm

Actually toying with using about $100K to $150K to write my own mortgage from RRSP funds but …have read that low interest rate (are we low, ZIRP or NIRP?) not best conditions. If my RRSP is returning steady 6%… is this a dumb move?

#32 wallflower on 02.29.16 at 7:56 pm

#3 — No conspiracy theories and no vested interest.

That leaves…. sentiment!!! That would be my pick. Lots to read about how sentiment moves markets and currencies.

#33 DodgedBullet on 02.29.16 at 7:56 pm

nice topic, did the old switcheroo with some assets today.

#34 Smoking Man on 02.29.16 at 8:03 pm

The dog looks like Jeb Bush face when asked by a alternative media reporter about 911.

Jeb dropped out the next day.

#35 will on 02.29.16 at 8:19 pm

Well I haven’t stopped “contributing.” To myself that is. But this is an opportunity to raise this little language problem again: the key definition of a contribution is something given to benefit a larger whole. (Wictionary, which I have no reason to dispute. ). In the case of the rrsp, you are not contributing to a larger whole. You are giving to yourself. Until I resolved this for myself I was confused and hated the rrsp as well.

As for the usual crap offered by advisors, it’s no wonder people get turned off. Mutual funds are boring. Companies are not boring. But mutual funds are. But having said that I am sure glad I had them. Got me started that’s for sure.

#36 Mister Bates on 02.29.16 at 8:29 pm

Yes, lets imagine this fantasy.

“Imagine a $700,000 TFSA churning out fifty grand a year in tax-free income, allowing you to still collect a public pension”.

Because it is just a fantasy, except for those on the public pensions that is. That at least is lucrative and guaranteed. The market is not spitting out a net of 50 grand on 700K in free cash income on any regular basis, not even close. You might ‘average’ a 5 to 7% return over 40 years, but don’t be fooled, that is reinvestment of dividends and slow grinding inflation, not income every month. Don’t be fooled by this malarkey.

History says otherwise. — Garth

#37 NoName on 02.29.16 at 8:37 pm

#24 Russ on 02.29.16 at 7:34 pm

i run few other web based, 2015 income tax calculators/estimators with your numbers and all other came with bigger refund number.
what say you Turbo?

#38 Paul on 02.29.16 at 8:39 pm

#28 common sense on 02.29.16 at 7:45 pm

#21 Godth

You got it my friend…most are broke from being in debt over their eyeballs…

Again I ask, when these bubbles all come down and bills need to be paid by the gov’t, who’s money are they coming after in the form of higher taxes and clawbacks?

I can only say OURS who’s net worth they CAN see if RRSP, TFSA, etc balances…hide some cash people
———————————————————-
Hence the reason for a cashless society.
People just tap and swipe their way through the day,
Can’t even pay for a coffee with a dam Toonie

#39 Raj on 02.29.16 at 8:42 pm

G,

I contribute the max amount to RRSPs and TFSA, but I am 40 to 45 years away from retirement. Any chance these go the way of income trusts and the government decides to tax these differently?

#40 will on 02.29.16 at 8:51 pm

Just change the word “contribution” to “deposit” and I think that would change attitudes immediately. Of course the next language level would be something like what to buy for your rrsp, as opposed to the (cringe) idea of “buying” an rrsp.

#41 A belieber on 02.29.16 at 8:52 pm

dumb sh-t godth says. Verbatim:

https://imgflip.com/i/zhryu

#42 Praise the sun on 02.29.16 at 8:55 pm

I try and keep my TFSA and RRSP maxed out. I don’t own any USD ETFs in my RRSP, but have exposure to it through Vanguard’s VUN. Presently I have a 5 etf portfolio between the 2 accounts. RRSP holds VUN +some maple equity, TFSA holds bonds and international.

I expect to use the HBP at some point in my life, no goal set, probably in 3-5 years.

Would it be prudent to try and keep the funds matched in each account? so that I have US/CDN/INT equities in both as well as bonds? I have a minimal transaction costs (1 penny per share) when buying or selling.

#43 HellYeah on 02.29.16 at 9:01 pm

And now a guy in a playpen. Looking forward to a “history” button so we can see all the previous images-of-the-day.

More on topic: doing what I can on my RRSP contributions now that I’m in a high-ish tax bracket. But now that I’m in a new-ish domestic relationship I’m going to look into the spousal version, ’cause that seems like a pretty easy trade for us.

#44 Randy Randerson on 02.29.16 at 9:01 pm

Just read this on Reddit’s front page, by Mark Cuban:

“The Most Patriotic Thing You Can Do

Bust your ass and get rich.

Make a boatload of money. Pay your taxes. Lots of taxes. Hire people. Train people. Pay people. Spend money on rent, equipment, services. Pay more taxes.”

I see Canadian youth has gone down the path of dragging down successful people to make themselves feel better. Such dichotomy.

#45 Chris on 02.29.16 at 9:02 pm

Where are the real stats Garth. How many people who are eligible contribute to RRSPs. How many to TFSAs. How many have pensions. I think if you add up these three you would see that in fact, of the working population over age 18 most people are in fact putting away funds for retirement. Do people invest less in RRSPs now than 15 yrs ago – of course, because many invest in TFSAs instead. Its not all doom and gloom.

93% of TFSAs are under-funded. 80% of the money is in GICs. 71% of us have no corporate pensions. — Garth

#46 nocturno on 02.29.16 at 9:02 pm

Today I made my largest RRSP contribution compared to any other year and felt great (35K). I’m planning/hoping to take a year off work in the near future to go to warmer lands and will use RRSP money. Wouldn’t have thought of that earlier hadn’t been for Mr Turner’s preaching… ;).

#47 Kreditanstalt on 02.29.16 at 9:04 pm

These days, not many people have secure careers with big companies that last for years or decades.

RRSPs were designed for an employment model that hardly exists anymore.

Privatize all retirement saving. Leave it up to the individual.

#48 WalMark of Sadkatoon on 02.29.16 at 9:11 pm

more financial gold from Gartho. this is another one that needs to be bookmarked. seriously. most ppl believe RRSPs are for retirement but that might be because of its deceptive name.

#49 WalMark of Sadkatoon on 02.29.16 at 9:12 pm

Privatize all retirement saving. Leave it up to the individual

already happening

#50 Smoking Man on 02.29.16 at 9:15 pm

Fifteen years ago, when I was a lad with rock pecs and a hot wife (still is), I made considerable money writing books about RRSPs. People actually bought them. By the thousands. “We’re printing more,” my publisher told me one day in her sultry, Bohemian tones. In fact, there was a new Garth Turner RRSP book every year for a while, which you can imagine was quite a feat.

But these things seem sexy no more. Shelves no longer groan every winter under new financial tomes. Poor displaced, homeless authors now congregate beneath bridges and behind Timmies’, keeping warm beside smoky pyres fueled with the curling pages of retirement guides. It’s tragic. I hear some guys completely lost it, and started blogs. – Grath
………….

To funny but got to hand it to you, you are very adaptable. It’s that thing inside every Entrepreneur that sets us a part from the herd.

Shit happens, things change, always have a plan B C D and E.
And if not don’t be afraid to improvise.

For 99% of the population, Get an obedience certificate, the dream job, work for 35 years, pay off the house, retire and wait to die.

What a hapless existence, plus it don’t work that way anymore.

I know my book will not make the best sellers list, not even close. It’s so much fun to get a good buzz, turn the tv off, ear buds on with great tunes. Hit the keys for a few hours. Go to bed.

Wake up, an laugh your head off.

#51 WalMark of Sadkatoon on 02.29.16 at 9:17 pm

She was right about the rrsp not being right for her, but really did not understand why.

RRSPs benefit the wealthy more than the poor. it’s a good thing the government decided to leave RRSPs alone and go after the TFSA. the TFSA favours the poor. top politicians are in the rich camp. thankfully they remembered that and made the right choice. life for the rich continues to be good.

#52 StandardDeviation on 02.29.16 at 9:17 pm

Here is another reason why RRSPs are out of favour, the financial industry is a basket case when it comes to people trusting it. With their bevy of Financial advisors, TNLTB and every other would be expert on BNN and Bloomberg, all of whom invariably get it wrong. It would seem that simply maintaining capital is the goal, whilst most people lose money, anything else is a rare bonus. Perhaps my experience is the exception although my experience with most folk on this is the same. Having said that Garth I have not used a fee only advisor so forgive me on this generalization.

No, actually, I won’t. — Garth

#53 tundra pete on 02.29.16 at 9:23 pm

#3
Likely no currency or just one. The central bankers have a great big ass horny spot for being rid of cash. Completely . No currency. Most of it is in your hand. The NFC (near field communication) in your phone likely to become a major pay source soon. Something like the Amnero to be a likely currency but hardly on your life.

It is the horn dogs at the NSA’s wet dream to have an nfc pay system to completely suveil your every move and thought. The thought police will be droning you before you know it.

Just use your imagination as to the different types of currencies that will evolve as soon as that happens. That whole scenario will likely be the fallout of something much nastier indeed.

#54 MC on 02.29.16 at 9:23 pm

#46 Chris – “most people are in fact putting away funds for retirement”. haha… right. Maybe you missed the report issued last week indicating the average canadian retiree has less than $3K retirement savings. That’s great as long as you plan to die within a week or so of retiring. Or you can also check out the zillion or so other surveys indicating the same result. Or just go speak to a few 20 and 30 somethings.

By the way, TFSA will always be full of GICs and “high interest” savings accounts for the simple reason that 90% of people open TFSAs at the bank, and that’s what the bank sells. That and the government misnomer calling it a “savings” account in the first place, instead of a TFIA tax free investment account. No wonder the average financially illiterate canadian walks in and asks “what’s the rate on a TFSA”? Great question here’s another – what’s faster, a honda or a civic?

#55 koenig on 02.29.16 at 9:37 pm

Its fools who buy condos, unless you bought them dirt cheap and rent them out for a good return.

And more and more listings coming on the market! Next month everyone will be complaining on how the foreigners dumped their foreign assets for cash! The Chinese are crashing, just as many people need cash to survive as there is parking money in Canadian real estate holdings. O.k. maybe not next month, by summer. We also have Canadians that see the price rise as a chance to get out of debt. Before the drama teacher and his trained moron (all liberals are stupid) seals, tax us all to death!

#56 VENTING on 02.29.16 at 9:58 pm

I just lost an opportunity for a 100K a year contract up in the pit because I failed the fitness test?

I can’t believe it, this was total over kill by some stupid SureHire physio bitch.

I’m in my late 50’s and been around the block, played a few games.

So my shoulder wouldn’t turn upside down and inside out without some discomfort… I dislocated it a few times 20 years ago playing our fast paced hard hitting national game.

I’ve never had ever part of my body turned and twisted backwards and inside out so much as this total overkill fitness test

I’m in good shape for my age, still play hockey and golf walking the course. I’m in a lot better shape than half those other guys on that safety training pushing 300 lbs.

I’m not 18 years old trying out for the Oilers you dumb bitch.

There’s a little more brain then brawn being a Telecom Engineer

Three months left on the UI

I’m so pissed off

#57 Smoking Man on 02.29.16 at 10:04 pm

The tail of the billionaires, sort story by a dyslexic listening to zeppelin on the ear buds.

You’re a billionaire, still my goal. Naturally you gravitate to other billionaires. You have annual meetings at exotic places, and all you do is bitch about your local governments restricting you from slaying other billionaires you don’t like. Being human you tend to feel sorry for the most miss fortunate in the world you want to help a few of them to clear your conscience.

So you set up a world where capital and enterprise can move freely around the globe, collectively you have so much money you eventually control the media, the courts, the policy of regional governments by buying off politicians.

Now the dudes not as lucky as the billionaire, worth 100 million or so what to join the club. So they move their factories to place like China, and Mexico, knowing that they can kick the crap out of there rivals back home.

Once one of them does it, the only way the rival can survive is to do the same.

And your people back home who helped get you to where you are, are sacrificed, and they know it.

You come out of lake delusion from your decadent skinny dip only to discover that Trump took your clothes. You scream at your employees, to late you’ve been smoked, another low level billionaire who want’s more, he read the herd with the help of a dyslexic consultant, and out foxed you all.

His name Donald Trump

There is a book coming…

#58 Adios! on 02.29.16 at 10:09 pm

Hello fellow blog dogs. Long time reader. Just sold our house tonight west of Toronto. $100,000 over ask. Ask was a well-researched fair price with really good comps to compare to. Mind boggling this market is so hot. 8 offers. This is not Toronto, this is suburbia.

This market has all the signs of cresting. It doesn’t end well. We’re ok now, taking the family out of the country for a few years. Prime Minister Hotty was the final straw. Hopefully things have settled by the time we want to buy again.

#59 common sense on 02.29.16 at 10:13 pm

B.C. is a bargain…

China’s Crowd-Sourced Housing Bubble Goes “Crazy” – $585,000 For A 65 Square Foot ‘Apartment’

#60 Smoking Man on 02.29.16 at 10:19 pm

My next gig, Kevin O’Leary, I bought a cottage close to his in Muskoka.

He don’t know who I am at the moment. But buy September, end of boating season.

Butts, Wynne and T2 your ass is mine.

Beats waiting for death in the tropics.

Some people collect stamps.

#61 Russ on 02.29.16 at 10:30 pm

NoName on 02.29.16 at 8:37 pm
#24 Russ on 02.29.16 at 7:34 pm

i run few other web based, 2015 income tax calculators/estimators with your numbers and all other came with bigger refund number.
what say you Turbo?
==========================
Hey Mr. Name

Here’s the link to the one I used
http://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp

I went looking for whether I should do 30K or 35K this year but didn’t dig deep into looking for others (or at all really).

As Garth recommends, everyone should get to know RRSPs. I’ve mostly done spousal since we’re a single income family but this year & next two it goes to mine so we can draw from hers when I move to part-time, as an ease to retirement.

Now that is some serious income shifting!

#62 Silent the people on 02.29.16 at 10:32 pm

Good post Garth,
My question is if you think RRSP’s are a
good idea when we have a reckless government like T2!
Putting away money to be taxed later with a much higher
tax bill won’t seem like a smart investment….

#63 Smoking Man on 02.29.16 at 10:33 pm

Amid Trump surge, nearly 20000 Mass. voters quit Democratic party
Boston Herald-9 hours ago
Nearly 20,000 Bay State Democrats have fled the party this winter, with thousands doing so to join the Republican ranks, according to the Boston Globe…
…..

Did I mention I work In Boston… Ha The links has been deleted by the machine.

God damn confidentially arrangements.

Smoking Men like the x files. Only in the shadows.

#64 Smoking Man on 02.29.16 at 10:34 pm

Its back the link

http://www.bostonherald.com/news/us_politics/2016/02/amid_trump_surge_nearly_20000_mass_voters_quit_democratic_party

#65 Russ on 02.29.16 at 10:38 pm

#56 koenig on 02.29.16 at 9:37 pm

Its fools who buy condos, unless you bought them dirt cheap and rent them out for a good return.

And more and more listings coming on the market! Next month
===========================

And where have we heard that all real estate is local?

Here’s the dirt cheap part but try finding people who will rent from you (to go there).

http://www.royallepage.ca/en/bc/port-alice/properties

Disclaimer: not affiliated with anything up there. A buddy brought a RLeP flyer to work for a laugh. (The condo examples he had were even cheaper! 25K)

#66 data on 02.29.16 at 10:53 pm

RRSP – one major thing you forgot Garth – The reason the government is giving you that instant bang is they are making up for it in two ways

1) They are converting your capital gains and dividends into INTEREST INCOME which is taxed at highest rate. This is something many many people miss and don’t understand. This takes a deep dive.

2) You are punished in Canada for being a good saver. In the future, tax rates will be higher as governments push more for revenue and bet that they will cancel out your OAS and rest if you have a whack coming in from RRSP

3) They will kill the TFSA in time. They know it’s awesome.

I look at my parents now having no way to pull out large sums because the tax rate is over 50%. So they pull out barely anything (min) however when they die, it will get taxed in my hands via estate tax.

The key is start winding it down around 56 to 65, how to do that is a secret well kept and not for this blog.

#67 data on 02.29.16 at 10:58 pm

Many people on the blog are concerned with housing data to identify “who is buying this stuff” My answer is WHO CARES. When you buy or sell stocks, etc, why does it matter? If a bunch of rich Canadians bought up Point Grey, would it matter?

HOUSING is NOT a

1) RIGHT
2) you have options to rent
3) ENTITLEMENT
4) NEEDS TO BE EARNED

If you can’t afford housing, you have an INCOME problem, can’t blame that on society or governments. They have made cheap as hell to buy already.

#68 Smoking Man on 02.29.16 at 11:03 pm

Lesa La Flem CTV late night anchor. what an embarrassment to the land of the hockey player.

So owned, she`s to dumb to even know.

#69 Godth on 02.29.16 at 11:05 pm

#42 A belieber on 02.29.16 at 8:52 pm

Holy smokes – are you still at it? You should join Odin’s army…or the Zionist army…or the Jihad. Damn, so many options. White supremacists, the Stern gang (faux semetic supremacists) or various tribes fighting for their life (albeit split in macro terms between Shiite and Sunni). Of course it’s all about regional hegemony, and global hegemony so you can continue driving your your boat to an unrewarding career while feeding your family McNuggets.

#70 Smoking Man on 02.29.16 at 11:14 pm

#71 Godth on 02.29.16 at 11:05 pm
#42 A belieber on 02.29.16 at 8:52 pm

Holy smokes – are you still at it? You should join Odin’s army…or the Zionist army…or the Jihad. Damn, so many options. White supremacists, the Stern gang (faux semetic supremacists) or various tribes fighting for their life (albeit split in macro terms between Shiite and Sunni). Of course it’s all about regional hegemony, and global hegemony so you can continue driving your your boat to an unrewarding career while feeding your family McNuggets.
….

Trying to read you, my screen possessed by the devil, i will try and re read what you just said after a few coffees.

You don`t want to be on my shit list god.

look what I did to america.

#71 Investx on 02.29.16 at 11:14 pm

“Imagine a $700,000 TFSA churning out fifty grand a year in tax-free income”‘

So we can expect 7% dividends?

If the past decades are an indicator of the next. Whether it’s 4% or 8%, the principle remains. Only the foolish would passs it by. — Garth

#72 Ronaldo on 02.29.16 at 11:29 pm

#69 data

”They have made cheap as hell to buy already.”

Quite the opposite. Had it not been for gov’t intervening in the markets, housing would not be in the predicament that it is today. Go back and check your data.

#73 duh! on 02.29.16 at 11:38 pm

RRSP is for oldies :)

Locking money for govt to inflate

flipping houses or renting them out is the new RRSP garthelo….

your boat has sailed

amigo

#74 suka listan to #69 dATA on 02.29.16 at 11:40 pm

well said my friend
================

#69 data on 02.29.16 at 10:58 pm
Many people on the blog are concerned with housing data to identify “who is buying this stuff” My answer is WHO CARES. When you buy or sell stocks, etc, why does it matter? If a bunch of rich Canadians bought up Point Grey, would it matter?

HOUSING is NOT a

1) RIGHT
2) you have options to rent
3) ENTITLEMENT
4) NEEDS TO BE EARNED

If you can’t afford housing, you have an INCOME problem, can’t blame that on society or governments. They have made cheap as hell to buy already.

#75 The Profet on 02.29.16 at 11:42 pm

Take all your money out of the system. Mail-ins are coming. Your RRSP will be wiped out. You will never see a penny of your money.

#76 Ronaldo on 02.29.16 at 11:48 pm

#68 data

”The key is start winding it down around 56 to 65, how to do that is a secret well kept and not for this blog.”

You make good points regarding RSP’s. I will be making my final transfer from RSP to RIF to unregistered account next January and prior to turning 71. I have been melting down since I retired in 2000 and in particular when able to pension split with my spouse cutting the tax bill considerably. All gains going forward will be subject to dividend tax credit and capital gains taxed at 50%, not 100% if left in RSP’s. Paid much less in tax on withdrawals than what I gained when contributed as was at the highest tax rate. Also, no clawbacks. Reason people need a good financial advisor like our host for example.

#77 Smoking Man on 02.29.16 at 11:51 pm

Holding my autistic dog Wyatt. He gives out a kiss, don`t happen that often`. He`s challenged.

Its what makes life worth living.

#78 Investx on 03.01.16 at 12:01 am

#73 Investx on 02.29.16 at 11:14 pm
“Imagine a $700,000 TFSA churning out fifty grand a year in tax-free income”‘

So we can expect 7% dividends?

– If the past decades are an indicator of the next. Whether it’s 4% or 8%, the principle remains. Only the foolish would passs it by. — Garth

———————-

You can’t get an overall 7% yield right now, so why expect it in retirement?

#79 Cici on 03.01.16 at 12:10 am

Today’s post is pure beauty…love it!

I needed a big break from RE!

#80 Nobody on 03.01.16 at 12:15 am

#7 – The ones that have it best are wealthy recent immigrants. No taxes paid here but all the amenities.

I pay a lot of tax here, because of my very high salary, because of the company I started that now employs 25 people in Canada. All possible because of the very good education that Canada didn’t have to pay for.

Until Canada builds some world class universities it is going to have to rely on us recent immigrants if it wants to export more than hockey players and cold fronts.

#81 Randy Randerson on 03.01.16 at 12:41 am

#66 Russ on 02.29.16 at 10:38 pm

Hah! Port Alice! I have a friend who works in the northern part of the island, and I transit through Port Hardy regularly. The cheap price reflects the fact that no too many people want to live in the boonies.

#82 jane 24 on 03.01.16 at 12:46 am

Got it on one blog dogs, Canadians have no money left at the end of the month to invest so better to ignore the financial options. Then you don’t feel so bad.

After paying for some of the world’s highest house prices and some of the world’s highest costs of living and some of the world’s highest insurance, cable and utility bills on low wages – fellow Canadians have no money left to invest. Pitiful. No money left to live a full life actually. Why aren’t you rioting in the streets? It works for the Greeks.

The only plus point is that since so few have the funds to travel or the guts to travel, most don’t know about their high cost of living and pitiful state so are happy in their ignorance and go on this blog bragging about living in the greatest country in the world.

If you want to view the future then visit Vietnam, I was very impressed at their entrepreneurial spirit.

My Italian hubby always says that if a Canadian has $10 in their pocket it stays there. If a Brit has £10 in their pocket then they go down the pub and have a pint with friends. Got to live that life guys, you only have one.

Owning your own house is not the be all and end all of life. See the world when you are young, don’t tie yourself down with a million dollar shack.

#83 Larry1 on 03.01.16 at 12:55 am

Plan ahead and avoid borrowing for an RRSP or getting a year end rebate. Contribute to the RRSP when you get your notice of assessment and file a T1213 to Request to Reduce Tax Deductions at Source. Make more money earlier instead of waiting for a a refund at the end of the tax year.

#84 What kind of be is huff post posting on 03.01.16 at 1:23 am

http://m.huffpost.com/ca/entry/9344954

Reasons to buy now

#85 Generation Nonsense on 03.01.16 at 1:39 am

“I just lost an opportunity for a 100K a year contract up in the pit because I failed the fitness test?”

You don’t get it Pal, you didn’t fail the test, the job was already earmarked for someone more ‘politically correct’ to place under the current government employment guidelines. Likely under the politically correct wordings of the subsidy guidelines it was necessary to do an open cattle call, but that didn’t mean everyone was going to be given a job based on experience or merit. Welcome to the New Liberal Canada. My advice, sell up and open a bar down in Mexico. This country is not what it once was.

#86 Don't have a billion on 03.01.16 at 1:51 am

http://www.businessinsider.com/deutsche-bank-328-billion-has-been-moved-out-of-china-in-secret-2016-2

#87 Bob dog on 03.01.16 at 2:01 am

For me it’s the lack of accountability during the financial terrorist attacks of 2007. Not one bankster faced jail let alone execution for crimes against humanity. I will never trust the financial system including RRSP TFSA or housing until the vermin responsible for the downfall of human civilization are punished.

#88 Outtahere on 03.01.16 at 2:24 am

Both my husband and I have pulbuc service pensions…would you still recommend we get RRSPs?

#89 Vancouver update on 03.01.16 at 2:37 am

Sales data released today that those houses sold today, approximately 50% were listed within the last 7 days.

These homes went above asking and without conditions.

Forget $2million Vancouver homes. At this rate, good luck getting a home for $5million in Vancouver in a few years. Everyone is buying now. Christy Clark just stated she will not let housing go down. Once in a lifetime lottery opportunity.

#90 Mark on 03.01.16 at 3:21 am

Anyone noticing the CAD$ is starting to do well? So much for the people who honestly thought it was going to 50 cents, lol.

The BoC makes an announcement in a week or two. As stated earlier, I believe they’re going to be “on hold” for the next rate cut until at the CAD$ is at least beneath to $1.3 CAD$/USD, but at least the target is “in sight” and a cut could very well come at a subsequent announcement. Gold and silver starting to do well as well.

#91 family beagle on 03.01.16 at 5:13 am

#60 common sense on 02.29.16 at 10:13 pm

B.C. is a bargain…

China’s Crowd-Sourced Housing Bubble Goes “Crazy” – $585,000 For A 65 Square Foot ‘Apartment’

…..

A familiar situation to 604 in this abstract…
http://economics.harvard.edu/files/economics/files/fang-hanming_3-11-15_demystifying_chinese_housing_boom_s2015.pdf

It’s odd that China’s top three tier one cities parallel Vancouver’s real estate price % change. Like two wings of the same gull. Expectation and price support appreciating assets with little perceived risk. The strategy is that there will always be a greater fool and the expanding girth of cities is good. Lots of cash looking for cheap parking and the premier of BC lit a neon ‘For Sale’ sign. So, locals are doubling down on the wave.

It will be interesting when the mayor of Vancouver has to commute from Mission.

#92 family beagle on 03.01.16 at 5:30 am

I’m planning letigious retirement based on product defects and negligence. I’ve got seven award winning scenarios any mall shark advocate can file. Check out, “Best Before Death”, my re-re-re-scheduled novelette, with an entire new chapter on how to scam the young using lonely grandma/grandpa phone scenarios.

#93 jess on 03.01.16 at 7:19 am

john oliver at his best re: Trump

remember trump mortgage 2006?
https://www.youtube.com/watch?v=DnpO_RTSNmQ

——————–

#94 maxx on 03.01.16 at 7:36 am

#13 james on 02.29.16 at 7:12 pm

“#2

“Do you think that the CMHC is a form of government intervention?”

Of course it is. It is intervention of the worst sort. Ostensibly designed to help home buyers, it actually provides subsidized insurance to the banking cartel. Moral hazard aplenty.

It is like most ‘progressive’ government programs. While looking amenable on the surface it has pretty profound macro level impact. It is easy to game, easy to capture and operating far beyond the original purpose for which it was introduced.”

Excellent post – absolutely agree.
CMHC is an archaic device which is now way past its best-before date. It has migrated into the realm of emergency medical treatment for other macroeconomic ills, given the tax-generating potential of re activity…..someone ought to declare it “DNR” as it’s creating huge, potentially irreversible debt, the result of which is an increasingly fiscally unhealthy country.

#95 pbrasseur on 03.01.16 at 7:45 am

Bottom line, save & invest! Make it a priority, before house and car purshase. Avoid debt as much as you can.

There’s nothing like being free, and doing that you will be!

#96 pbrasseur on 03.01.16 at 7:57 am

Anyone noticing the CAD$ is starting to do well? So much for the people who honestly thought it was going to 50 cents, lol. Mark

I think celebrations are a bit premature! CAD has creeped back on quite shaky bases (or perceptions), the Canadian economy is above water only because of unsustainable rise in household debt. Canadian economic «defects» are deep and structural, this will take a very long time to sort out, especially with governments kicking the can down the road by borrowing and spending.

Fact is we are losing ground to the US every year and over a decade or more that gap will look stupendous! Given the world wide tendency to use the currency as a buffer I wouldn’t bet on the CAD in the long run.

#97 mishuko on 03.01.16 at 7:59 am

I’ve been holding off making/contributing to an RRSP for the time being until I do the exact things you’ve highlighted.

making more coin in a higher bracket and maxing the tfsa comes first.

#98 crowdedelevatorfartz on 03.01.16 at 8:16 am

@#91 Outahere
“Both my husband and I have pulbuc service pensions…would you still recommend we get RRSPs?”
+++++++++++++++++++++++++++++++++++

You poor thing. A garanteed pension.

No just invest in spellcheck.

#99 Herb on 03.01.16 at 8:18 am

Smoking Man,

here’s your man, and a few things you didn’t know –

http://davidstockmanscontracorner.com/the-donald-the-good-and-bad-of-it/

#100 Doug in Shimla, India on 03.01.16 at 8:21 am

There may be a simpler reason fewer people are buying RRSPs, namely demographics. As we Boomers retire, myself included of course (otherwise what would I be doing travelling to places like India), we’re making less and don’t have the incentive to save in RRSPs, in fact some of us are deregistering them.

#101 crowdedelevatorfartz on 03.01.16 at 8:22 am

Anyone see the 6pm Global “News” last night in Vancouver? Brought to you by Remax (natch).

A survey of Millenials. They expect to recieve, on average, $300,000 from their parents estate when they die.
The interviews of Millenials confirmed this. The interviews of the Bank of Mom confirmed the loaning process, ” I gave them 30k as a downpayment……I gave them 20k for a car”……….and on and on and on.

Yep, those greedy Boomers have ruined the planet and just dont know how to share…….

#102 AfterTheHouseSold on 03.01.16 at 8:35 am

Interesting read.

http://business.financialpost.com/news/energy/more-than-20000-jobs-on-the-line-as-canadas-oil-drilling-rig-fleet-shrinks?__lsa=e0b6-8051

#103 JoeyJoeJoe on 03.01.16 at 8:42 am

If my spouse withdraws her RRSP that I contributed to three years ago, can she simply hand me back the cash and I dump it back into her RRSP again for another three years? So recycling the same money for a tax refund every 3 years? In my case: my spouse is not employed (and might not be for 6 years, and I have a large rrsp contribution room).

Thanks

Sure, but she will face a withholding tax upon collapsing the spousal plan. — Garth

#104 NTH on 03.01.16 at 9:19 am

#57 VENTING on 02.29.16 at 9:58 pm

Venting, can you arrange for an independent fitness test? I would do that ASAP and include a sincere letter conveying your motivation to work yadda yadda. You’re a boomer, go kill it!
Good luck!
Not tonight honey

#105 Yanniel on 03.01.16 at 9:29 am

I’d love to hear about the ” tax-free RRIF income”. How can that be achieved? Just a one liner pointing me in the right direction would be greatly appreciated. Thanks.

#106 Oilbertans on 03.01.16 at 9:48 am

Thanks Quebec.. ya bunch of ingrates..Hey T2, do we have a Country or not? What ya gonna do T2? It is a Federal decision after all PM or is it Butt who really runs things.

http://www.huffingtonpost.ca/2016/02/29/energy-east-injunction-quebec_n_9352440.html

#107 Hot Albertan Money on 03.01.16 at 9:54 am

Garth,

Here’s my dilemma with the RRSP vs TFSA thing…I have a DB pension (please don’t kill me)

On one hand, the RRSP is sexy because of the tax refund, but on the other the TFSA doesn’t affect any income tested gov’t retirement benefits. SO since I’m not flush with cash, I’ve decided to focus in on my TFSA the last couple of years.

Am I on the right track?

Yes. But we still hate you. — Garth

#108 Sonny on 03.01.16 at 9:57 am

Unconditional offers are new normal in Vancouver real estate market

http://www.theglobeandmail.com/news/british-columbia/unconditional-offers-are-new-normal-in-vancouver-real-estate-market/article28962021/

“If Ms. Shalinsky and her fiancé decide to put in an offer – which they’ve already done, unsuccessfully, for two other properties – they’ll have to do something that would seem unthinkable in almost any other market: make a bid with absolutely zero strings attached.”

How can you not shake you head at the above quote!

#109 James on 03.01.16 at 10:07 am

#64 Smoking Man on 02.29.16 at 10:33 pm
Amid Trump surge, nearly 20000 Mass. voters quit Democratic party
Boston Herald-9 hours ago
Nearly 20,000 Bay State Democrats have fled the party this winter, with thousands doing so to join the Republican ranks, according to the Boston Globe…
…………………………………….
Did I mention I work In Boston… Ha The links has been deleted by the machine.
God damn confidentially arrangements.
Smoking Men like the x files. Only in the shadows

__________________________________________
Smoking Man you promote this asshole? Your as dumb as he is, or should I say as much of a liar. This guy is a total dick. Anyone how doesn’t know who or what the KKK and David Duke is must have been in a bomb shelter for the last 50 years. Trump can not represent America we have moved so much further along than buffoons like him. If you promote Trump your essentially green stamping his dumb ass uninformed policy. Trump needs to redact this stupidity and move on. Preferably to his office in Manhattan.

http://www.cnn.com/2016/02/28/politics/donald-trump-white-supremacists/

#110 Calgary Rip Off on 03.01.16 at 10:37 am

“Finally, RRSPs have dropped out of favour because we’re all house horny, real estate is crazy expensive”

House horny. That is a dumb term. How about people just want a decent place to live? In Calgary that still means that rentals and mortgages are expensive. My neighbour put his shack up for sale, around $480K is the list price. That same place was around $420K when he bought it early 2012. So much for declining rip off prices. “real estate”=the only thing that in many cases increases in value when it is older, NOTHING else does!!

RRSP: Uh yah. Been doing that at the bank and with the employer every year for tax purposes every year.

” RRSPs rock. Mercy. I’m aroused just writing this.”

Not me. Im grateful to have simple things such as eyes, legs, arms, brain, food, and water. I dont require much to be happy. Still working on how to mentally disconnect on all things that “society” thinks is valuable or important, ie, golf vacations, new vehicles, all the signs of a vain world which all eventually get old and die. Focus on the things that last.

I wouldnt want to be Garth having to deal with the general public. Arrogant, self serving, not humble. Many, but thankfully not all.

#111 Mixed Bag on 03.01.16 at 10:44 am

Down the lane, if a set of countries or the world in general decides to ditch the US currency, which all non-US currencies may go up in value?

– Euro.
Except, Saddam wanted to ditch the petro-dollar and trade in Euro’s, look what happened to him. “Oh, there weren’t any WMD after all, our bad.” Hmf.

Then the war in former Yugo, there’s video documentation that was played there, which leader was going to do/take what, but one didn’t follow the plan (or did he follow a secret plan?). Destabilized the continent to delay the introduction of the Euro by, what, 10 years? Look at the destabilization going on now. Why refugees from other conflicts not getting as much attention (not implying one group more/less worthy than other)?

So it ain’t gonna happen anytime soon. PTB preserve the petrodollar.

#112 rainclouds on 03.01.16 at 10:53 am

“My Italian hubby always says that if a Canadian has $10 in their pocket it stays there.”

Well its settled then. An Italian providing insights on personal finance and living. What’s next a productivity seminar?

Thanks for the laugh………………

#113 Smoking Man on 03.01.16 at 10:55 am

#112 James on 03.01.16 at 10:07 am

I love anyone MSM hates. And I hate anyone MSM loves.

Bulding 7 free fall .

No coverage. .

Traitors.

#114 IHCTD9 on 03.01.16 at 11:15 am

#31 Scumop on 02.29.16 at 7:50 pm

…The ones who most need to listen will not.
____________________________________________

This is life in general, we all know those with hard hearts and their minds made up. As Mark Twain said: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

I’ve had several dealings with folks like these, friends and family too. I’ve found there is no point in arguing – live and let live. No good can come from trying to help folks who don’t want to be helped. Giving any advise at all is a capital offense.

I’ve been around just long enough to watch some folks carry on with flawed financial (and other) ideology even after it is clear there is a better way – which brings me to “Pride goeth before a fall”.

How hard is it to listen and act on the wisdom of others? Turns out it’s damn near impossible for some (most?)folks.

Finally, resentment. When those set in their ways quietly come to understand others were right. This is where “the fall” comes in. There will be no admission that they were wrong – even unto themselves inside their own thick noggins.

An amazing series of protections erected for the preservation of assertions that never should have been made in the first place. Marriages, families, friends, all on the chopping block thanks to pride, and stupidity.

Here’s to those among us that know they don’t know everything :)

#115 Bytor the Snow Dog on 03.01.16 at 11:27 am

@117 Tractor Boy-

Hard hearts?

Minds made up?

Flawed ideology?

Irony much?

#116 max on 03.01.16 at 11:34 am

Problem cost of living is very high in Canada. So high in BC, the last time we had a high dollar BC’ers overwhelmed American border town Costco.

https://www.youtube.com/watch?v=QyCZTVapOnM

$50k year provides a working class existence here in BC, even out in Abbotsford.

Even with the weak dollar we don’t see Americans flooding our Costco. The American auto makers are pouring billions into Mexico. Great deal trained seals and American lawyer politicians.

Income is on a decline in expensive to live Canada. Forget saving cash. The best deal would be the drama teacher and his trained seals, muck the country up like his Daddy did, president buys us up at pennies on the dollar and we become Americans. I’m ready for this eventual take over are you?

#117 TurnerNation on 03.01.16 at 11:38 am

Toronto. ..world class embarassment. Fire at single hydro vault caused complete failure of streetcars and subways in downtown core. Single point of failure?

All managed by unions -electrical and transit.
Who needs t-t-terrorists disrupting us when we have public service unions, graft and tax hikes in this 2nd world infrastructure country.

#118 steelman on 03.01.16 at 11:40 am

Nobody wants to put money into an RRSP, and get ripped off by taxes at retirement time. Your better off putting your money into a sock, and throwing it under the your bed, higher taxes later…simple.

#119 Smoking Man on 03.01.16 at 11:43 am

My message is finally catching on.

http://www.breitbart.com/tech/2016/02/29/my-fellow-students-its-time-to-challenge-our-lazy-politically-homogeneous-teachers/

#120 Ace Goodheart on 03.01.16 at 11:46 am

An interesting thought regarding Toronto’s “real estate bubble”. It is possible right now to purchase houses in certain areas of Toronto, for large amounts of money, hold them for six months, and sell them for six figure profits (and I don’t mean, like 100K, I mean like 400 or 500K).

This is of course incredibly risky, as no one has the million or so that it takes to do this, and you have to borrow. Sooner or later, the person holding the bag at the end of all of this, is going to get burned. Essentially what is happening is crap shacks are getting turned over for millions, by persons who don’t want to live in them, and eventually sold to end users who bulldoze them. This has been going on for years.

What can you do with 500K?

It’s all going to end (and probably badly). But until it ends, this is a ridiculous situation with people “earning” more than doctors, simply buying and selling houses.

#121 Phil on 03.01.16 at 12:16 pm

I avoid investing in cash/margin account until my TFSA is full (may take a few more years) so I don’t imagine you would want to transfer investments in-kind from TFSA to RRSP would you?

BTW – thank you Garth for sharing your vast knowledge with all of us, it has really opened my eyes and has given me an opportunity for a better life. Garth for PM!

#122 family beagle on 03.01.16 at 12:21 pm

#113 Calgary Rip Off on 03.01.16 at 10:37 am
…Still working on how to mentally disconnect on all things that “society” thinks is valuable or important, ie, golf vacations, new vehicles, all the signs of a vain world which all eventually get old and die. Focus on the things that last. I wouldnt want to be Garth having to deal with the general public. Arrogant, self serving, not humble…

—-

You’d find a seat at my table. You’re the future. Don’t stop.

#123 SquareNinja on 03.01.16 at 12:21 pm

Garth, you plead with “moisters” not to ignore RRSPs, to shift their earnings from years of fat paycheques to lean years… but you are also forgetting the strategy of carrying RRSP contribution room forward to years of higher income, thus reducing marginal tax in later years. This unmentioned strategy would certainly work well for moisters who have decided to join the ranks of the old guard and work 40+ hours per week at some soul-sucking profession, just because good money is involved.

I wholly disagreed with yesterday’s post, as you made yourself sound like another Kodak or Yellow Pages. The times are changing, Garth! I’m sure you can see some of the writing on the wall, as you’ve mentioned the demise of newspapers and the rise of Uber.

That said, yes, people do have to educate themselves about the way our capitalist system works (whose endgame is simply the gathering of most of the wealth in the hands of a few). But this capitalist system is dated and is in opposition to democracy (most do not realize this, as Westerners were taught to associate the two systems). At least the moisters realize this ironic fact and are making their opinions heard and felt.

A future world in which our lives still revolve around chasing the almighty dollar – at the expense of spending time on family, interests, actually improving the world – is not a world I want to live in.

#124 Grey Dog on 03.01.16 at 12:35 pm

Garth, how many years were you promoting TFSAs to Harper before he introduced them to the rest of us peasants?

Increasing them was just an election ploy.

RRSPs and TFSAs all topped up. Retirement in 1 year.

#125 IHCTD9 on 03.01.16 at 12:37 pm

been for Mr Turner’s preaching… ;).
.#48 Kreditanstalt on 02.29.16 at 9:04 pm
These days, not many people have secure careers with big companies that last for years or decades.

RRSPs were designed for an employment model that hardly exists anymore.

Privatize all retirement saving. Leave it up to the individual.
____________________________________________

Give up the tax shelter?

I think not.

#126 max on 03.01.16 at 12:45 pm

Sure housing is a right. But is the guy who can afford to buy a crap house in the lower mainland of Vancouver, is he going to rent it for free. No! Is the bank going to pay for everyone’s house, No. To sustain this market, money must get cheaper and everyone needs a huge pay raise! We are moving towards millionaire Wal-Mart greeters!

#127 SWL1976 on 03.01.16 at 12:49 pm

#96 jess

john oliver at his best re: Trump

remember trump mortgage 2006?

https://www.youtube.com/watch?v=DnpO_RTSNmQ

——————–

I watched this last night and it is an instant classic.

Trump is nothing more than a freak show to pacify the masses. He has no real cred and will most likely blow up before the election, either on his own or the machine will roast him.

The big money who really run the world do not support him and sadly with our modern day corprotocracy disguised as democray he doesn’t stand a chance. Even if he does get the popular vote there is always miss counts like in the 2000 election and the new wild card of electronic voting machines.

Sadly I think it’s going to be the woman who deals directly with the devil herself who wins, as she is known and trusted amongst the shadow government who really call the shots.

Trump is merely entertainment like the NFL, NBA, MLB, NHL and every other bit of crap out of Hollywood to keep the masses from really understanding how they are being played by a system that has the odds severly stacked against them while repeatedly telling them they are free to do what ever they want so long they pay their taxes (not for essential services, but to be skimmed and used to further surppress and enslave them) and so long as all their actions are approved by the ever increasing police state for their own safety

Both oilgarch and tyrant mistrust the people, and therefore deprive them of their arms – Aristole

That’s what’s next for America

#128 Arb Watson on 03.01.16 at 1:04 pm

Justin will give us unicorns.

http://www.autoblog.com/2016/02/29/unicorn-leads-california-highway-patrol-on-three-hour-chase/

#129 James on 03.01.16 at 1:08 pm

#116 Smoking Man on 03.01.16 at 10:55 am

#112 James on 03.01.16 at 10:07 am

I love anyone MSM hates. And I hate anyone MSM loves.
Bulding 7 free fall .
No coverage. .
Traitors.
_________________________________________
What has building 7 free fall have to do with David Duke, the KKK, and Donald Trump. By the way I spelled building correctly just so the rest of the normal world could read it. Here is what an educated highly respected scientist said. Sorry I forgot your not schooled, well your still rational right?
http://www.911myths.com/WTCREPORT.pdf

#130 max on 03.01.16 at 1:09 pm

The U.S. has no currency control laws. Canadians are free to buy property. You can form corporations. You can do business just like U.S. citizens. In some cases, tax treatment of Canadians can be even more favorable than that of U.S. citizens. U.S. immigration is the only discriminatory body of law.

Or is it?

As Canadians, your employees probably come to the States over the bridge or through the airport. Immigration asks the purpose of the trip. If the inspector feels the traveller is not going to work, he or she is waved through.

Whether you know it or not the traveller is given immigration status. There is no form or visa showing the status. There isn’t even an application form. Still, immigration gave the traveller B-1 status.

Here are some of the advantages of a B-1:
•Quick— no delay to start doing business.
•No paperwork— save precious corporate resources.
•Reduce risk with company supporting letter.

B1 is for up to a year in the U.S. Dirty little secret you can be the Canadian company and do all kinds of business in the U.S. without a visa.

Forget saving money in Canada, flee the drama teacher and his trained seal fools

#131 Brian on 03.01.16 at 1:14 pm

#68 data:
“RRSP – one major thing you forgot Garth…

1) They are converting your capital gains and dividends into INTEREST INCOME which is taxed at highest rate. This is something many many people miss and don’t understand. This takes a deep dive.”

Let’s see. Data gets $100, pays 50% of it in taxes, and invests the rest for 100% return. Final result $100, on which cap gain taxes may be due

Brian gets $100, puts it in RRSP, gets 100% return, withdraws the money and pays 50% tax. Left over is $100. No additional taxes due.

#132 saskatoon on 03.01.16 at 1:14 pm

#112 James

david duke doesn’t officially endorse trump.

trump has said that he neither needs duke’s endorsement, nor wants it.

you should really investigate matters more clearly, rather than simply spouting msm propaganda.

#133 IHCTD9 on 03.01.16 at 1:29 pm

#118 Bytor the Snow Dog on 03.01.16 at 11:27 am
@117 Tractor Boy-

Hard hearts?

Minds made up?

Flawed ideology?

Irony much?
____________________________________________

Politics? You’re kidding right?

Yep, when it comes to politics I’m all that – except flawed :)

And with regards to politics, I CAN be all that and more no problemo, doesn’t affect any of my important relationships. Doesn’t affect my household finances. Nothing of value is put at risk.

But I wasn’t talking about Politics.

Go and offer your overconfident/paranoid brother, sister, or best friend some financial advice right after they’ve just got slaughtered in the marketplace.

Go and offer some advice to someone close to you about how they might want to slow down on the booze a little bit.

Go and offer some pointers to your bro on how he might improve his marriage sometime.

Even if the need is dire and obvious, some folks don’t play that. You’ll find out pretty quick who does and who doesn’t in your circle if you want to give it a go. Those that don’t you will find struggling before too long.

^That is what I’m talking about…

#134 IHCTD9 on 03.01.16 at 1:54 pm

#121 steelman on 03.01.16 at 11:40 am
Nobody wants to put money into an RRSP, and get ripped off by taxes at retirement time. Your better off putting your money into a sock, and throwing it under the your bed, higher taxes later…simple
___________________________________________

44Wman, you mean put one dollar in a sock when gas costs .86/litre and pull it out again decades later when that same litre costs 2.25?

I think it has been said here 2000 times that you put into an RRSP while working full time, and pull it out when you are not working at all, paying diddly for taxes.

At that point you’ll be considered poor by the party of the day, which is the best thing to be considered as far as government goes.

#135 mishuko on 03.01.16 at 2:04 pm

@132 -> if ‘you’re’ going to call out the spelling atleast do the same right?

this is exactly what SM preaches. take your high horse and kick it down a notch. who cares meow if you’re a rabid blog dog needing the daily fix or a brainwashed msm teet sucking socialist.

wait… nvm i’ll stick with the rabid.

#136 Damifino on 03.01.16 at 2:16 pm

#123 Ace Goodheart

“Sooner or later, the person holding the bag at the end of all of this, is going to get burned.”

Yep. That would be your greater fool. The namesake of this very blog.

#137 TRT on 03.01.16 at 2:18 pm

Late arrivals to th USD-CND trade are crushed.

Smart money has already flowed out of USD. Did you get your EUR like I told you a month ago?

Central banks work together. If you believe markets are rigged , only then can you make money.

#138 TRT on 03.01.16 at 2:20 pm

CND $ saying US not raising rates and we not dropping ours. Actions talk and BS walks.

#139 James on 03.01.16 at 2:21 pm

#135 saskatoon on 03.01.16 at 1:14 pm
#112 James
david duke doesn’t officially endorse trump.
trump has said that he neither needs duke’s endorsement, nor wants it.
you should really investigate matters more clearly, rather than simply spouting msm propaganda.
………………………………………………………..
I didn’t say that David Duke endorsed Trump! I did say that Trump is a total dick, I did say that anyone who doesn’t know who or what the KKK and David Duke is must have been in a bomb shelter for the last 50 years, I did say that Trump can not represent America we have moved so much further along than buffoons like him, I did say if you promote Trump your essentially green stamping his dumb ass uninformed policy, I did say Trump needs to redact this stupidity and move on. Preferably to his office in Manhattan. The idea I am trying to get across is Trump is either a liar, or senile.

Trump knows who David Duke is and should disavow, disassociate himself or from anything to do with the KKK and David Duke. When clearly asked as in the interview if he would condemn David Duke and state that he doesn’t want his vote he typically pretended not to know anything about him on February 29, 2016.
Your clip from Politico August 26, 2016 says Quote” Donald Trump says he isn’t interested in the endorsement of David Duke, the anti-Semitic former Ku Klux Klan leader who praised the GOP presidential hopeful earlier this week on his radio show.
“I don’t need his endorsement; I certainly wouldn’t want his endorsement,” Trump said during an interview with Bloomberg’s Mark Halperin and John Heilemann. He added: “I don’t need anyone’s endorsement.”
Asked whether he would repudiate the endorsement, Trump said “Sure, I would if that would make you feel better.” So again either a liar, or senile you pick.

Read more: http://www.politico.com/story/2015/08/donald-trump-doesnt-want-david-duke-endorsement-121784#ixzz41gFeZDx2

http://www.cnn.com/2016/02/28/politics/donald-trump-white-supremacists/

http://www.politico.com/story/2015/08/donald-trump-doesnt-want-david-duke-endorsement-121784

#140 Smoking Man on 03.01.16 at 2:36 pm

Larry Summers, Neocon, New World Order, The Man pushing for a cashless society said about trump. His last sentence, READ IT.

“If we are to move past Trumpism, it will be essential to develop convincing responses to economic slowdown.”

In other words, we got to come up with a big ass lie to the american people. What a tool, everyone knows there jobs have been off shored, and Trump will bring them back one way or another.

The idiot’s own words below.
……………..

“Donald Trump’s rise goes beyond his demagogic appeal. It is a reflection of the political psychology of frustration – people see him as responding to their fears about the modern world order, an outsider fighting for those who have been left behind. If we are to move past Trumpism, it will be essential to develop convincing responses to economic slowdown.”

#141 Mark on 03.01.16 at 2:43 pm

“It is possible right now to purchase houses in certain areas of Toronto, for large amounts of money, hold them for six months, and sell them for six figure profits (and I don’t mean, like 100K, I mean like 400 or 500K). “

Not an individual identical property (unless you put $400-$500k worth of work into a property, in which case, you won’t have a profit!). What you’re seeing in Toronto is the sales mix shifting so significantly to the higher end (including newly renovated units or newly delivered units) that the average itself has been dragged up by a dramatically higher median. An individual who bought a house a year (or 2-3) ago hasn’t made much of anything in Toronto/Vancouver and may have a loss after carrying and transactional costs at this point.

I guess a few people might be bad with statistics and math, and fall into the trap of thinking they might be able to make some money that way. But then again, what’s that saying about a fool and his money….

“Toronto. ..world class embarassment. Fire at single hydro vault caused complete failure of streetcars and subways in downtown core. Single point of failure? “

I agree. Too much compensation for relatively un-skilled rank and file employees. Not enough for modernizing infrastructure. Sort of reflective in what was happening in the oilsands as well, with mere jackscrews significantly out-earning most professional engineering talent. A good flush is what the sector needed, and seems to be what it is getting.

#142 WalMark of Sadkatoon on 03.01.16 at 2:57 pm

Anyone noticing the CAD$ is starting to do well? So much for the people who honestly thought it was going to 50 cents, lol.

what’s even funnier is that ppl didn’t make easy money way when the CAD fell from parity with the USD down to 68 cents! and some idiots were even saying that the CAD will be worth more than the USD. all the way down. lol

and i guarantee they’ll make no money on the CAD rebound either. lol

poor is as poor does

some people make millions other ppl can’t even land a job

#143 Bram on 03.01.16 at 3:28 pm

Donald Trump is a fake, made-up name.
His real immigrant name is Drumpf.
(Pronounced as droompf.)

https://www.youtube.com/watch?v=DnpO_RTSNmQ

#144 Nemesis on 03.01.16 at 4:10 pm

#PrimalInstincts,Or… #JustAnotherAnimalHouse?… #It’sBetterInBC… #No,Really!…

[CBC] – College and drinking: province spending $400,000 to encourage dialogue

…”In a press release, the Ministry of Health noted that 39 per cent of post-secondary students who drank alcohol last year said they regretted something they did when drinking.”…

http://www.cbc.ca/news/canada/british-columbia/b-c-college-drinking-dialogue-1.3470250

#Didn’tGetTheMemo…

[CBC] – B.C. to allow alcohol in grocery stores from April 1

…”Other changes going into effect that day affect government B.C. Liquor Stores, which will be allowed to offer walk-in coolers, to stay open for longer hours and to open Sundays.”…

http://www.cbc.ca/news/canada/british-columbia/b-c-to-allow-alcohol-in-grocery-stores-from-april-1-2015-1.2840986

#Surprise!….

[CBC] – Bear hibernation could be ending much earlier this year

…”Frank Ritcey, provincial coordinator of WildSafeBC, says the conservation service has already had 130 calls about bears throughout the province, but it’s too early to tell if there will be real problems until the bulk of the bears wake up.”…

http://www.cbc.ca/news/canada/british-columbia/bears-hibernating-spring-2016-1.3470138

#145 cramar on 03.01.16 at 4:15 pm

#132 James on 03.01.16 at 1:08 pm
#116 Smoking Man on 03.01.16 at 10:55 am

#112 James on 03.01.16 at 10:07 am

I love anyone MSM hates. And I hate anyone MSM loves.
Bulding 7 free fall .
No coverage. .
Traitors.
_________________________________________
What has building 7 free fall have to do with David Duke, the KKK, and Donald Trump. By the way I spelled building correctly just so the rest of the normal world could read it. Here is what an educated highly respected scientist said. Sorry I forgot your not schooled, well your still rational right?
http://www.911myths.com/WTCREPORT.pdf

——-

Interesting report on WTC1 & 2, but nothing to do with WTC7 that seems to be the issue.

#146 WalMark of Sadkatoon on 03.01.16 at 4:21 pm

the weird thing is that real estate prices on individual identical property in vancouver and toronto remain far above what is historically reasonable when compared to median household income. all fueled by cheap credit. i don’t know how this will all end, but it can’t be good

#147 Donald Droompf on 03.01.16 at 4:24 pm

“I’m like 20 points up in Florida over a senator who never shows up,” he said of Rubio at the Port Columbus Airport.
I’m like, wow I’m like awesome.

#148 Bytor the Snow Dog on 03.01.16 at 4:24 pm

@136 IH Guy

Fair enough. Definitely given advice in some of the situations you’ve described…and it wasn’t well received. People do not like challenges to their worldview.

Someday we should meet and have a beer. Despite a bit of a difference in our political leanings (trickle down=failure) I think you and I are much alike.

#149 What tha on 03.01.16 at 4:28 pm

# 146 Bram,

And Eminem’s real name is Marshall Bruce Mathers III. Your point? It’s Trump’s ancestors who changed the family name in any event? Non-issue.

#150 SAFE INVESTMENT FOR THE CHINESE on 03.01.16 at 4:33 pm

TURMOIL IN CHINA INCREASES REAL ESTATE PRICES

http://www.huffingtonpost.ca/ludovic-siouffi/chinas-market-turmoil_b_9101334.html

#151 max on 03.01.16 at 4:44 pm

A quick look at the Vancouver and surrounding area shows lots for sale. Van has 1612 listings, neighboring Richmond has 964. Tulips, get your tulips here. Only $500k adjusted for inflation.

Its easy to say I bought ZYZ last month and now look at my genius! You can’t predict markets!!!!

#152 Droompf Nation on 03.01.16 at 4:54 pm

I’ve got Mussolini, Ghandi and the KKK on my side.. can’t lose.. USA, USA, USA.

#153 tkid on 03.01.16 at 5:00 pm

Brian gets $100, puts it in RRSP, gets 100% return, withdraws the money and pays 50% tax. Left over is $100. No additional taxes due.

Brian gets $100, puts it in TFSA, gets 100% return, withdraws ALL the money and pays no tax. Brian treats himself to a steak dinner courtesy of Garth.

#154 Binder Dundat on 03.01.16 at 5:17 pm

Latest RBC Housing Affordibility Report:

http://www.rbc.com/newsroom/_assets-custom/pdf/20160229-ha.pdf

“With an average price exceeding $1.2 million, single-detached homes have long since slipped out of reach for the average local homebuyer. RBC’s measure for this category— which is based on the median income of Vancouver-area households— reached an astounding 109.0% in the fourth quarter of 2015, which was up by
4.3 percentage points from the previous quarter.”

Yes, it now costs 109% of net median income to buy a detached house in Vancouver. NET income.

#155 Binder Dundat on 03.01.16 at 5:29 pm

My apologies- the above link related to RBC actually measures affordibilty thusly:

“captures the proportion of pre-tax household income required to service the cost of owning a specific category of home at current market value. For example, an affordability reading of 50 per cent means that home ownership costs, including mortgage payments, utilities and property taxes, would take up 50 per cent of a typical household’s monthly pre-tax income.”

This is still shocking, if you ask me- who buys a house with their pre-tax income?

#156 Rexx Rock on 03.01.16 at 6:12 pm

The people who are buying homes in Toronto and Vancouver are big time wage earners so there is no concern of affordability.Its just the talking heads in the media spewing lies and thinking its a big deal to sell news.If people can’t afford to live there,get a better job or an education so you can live where you want to.The median family income in Vancouver is well over $150,000.

#157 Brian on 03.01.16 at 6:14 pm

@#156 tkid,

The $100 in question were gross income. Pay attention.

#158 Ace Goodheart on 03.01.16 at 7:57 pm

RE: #144 Mark:

Not an individual identical property (unless you put $400-$500k worth of work into a property, in which case, you won’t have a profit!). What you’re seeing in Toronto is the sales mix shifting so significantly to the higher end (including newly renovated units or newly delivered units) that the average itself has been dragged up by a dramatically higher median. An individual who bought a house a year (or 2-3) ago hasn’t made much of anything in Toronto/Vancouver and may have a loss after carrying and transactional costs at this point.

I guess a few people might be bad with statistics and math, and fall into the trap of thinking they might be able to make some money that way. But then again, what’s that saying about a fool and his money….

Yes I was actually talking about buying an individual property, doing nothing to it, holding it for six months and re-selling it, for 4 or 500K more than you paid for it.

Yes you can actually do that right now in Toronto (in the right neighbourhoods). No I don’t think it’s going to last, and people who are doing it, are putting up over a million dollars, to buy houses that a millionaire would never live in (or even be seen standing next to), for the sole purpose of holding them and then re-selling to someone who wants to knock them down.

Yes there is evidence of this happening. It is ridiculous, but it is true.

No I would not engage in this practice myself. Whomever gets left with the title to these unlivable 1960s era crap shacks, when this whole over hyped contraption hits the wall, is going to regret it for the rest of their lives.

#159 south burnaby gardener on 03.01.16 at 8:42 pm

Garth, I think your advice to homeowners in 604/YVR is excellent in theory but extremely difficult to implement. We would love to sell, but I am not willing to sell unless I can find somewhere to live that we find acceptable, in the area we want to live. So far in our area, all I can find to rent are 800 -100 sq ft condos, old, old houses or new houses for $ 5000 p/m. A friend who used to work as a relocation specialist gave me a list of 20 + sites to use to look for housing and I have come up with zilch. This is not a one time effort. I have been looking since early March 2015. So far all the rentals are either too small, have low ceilings, not enough windows, wrong area, no storage, no view, or are TOO expensive (~ $ 4, 000 + p/m).The bottom line is we can’t sell if I can’t find a place to rent at under $ 3000 p/m that we want to live in.

#160 Mike in Edm on 03.01.16 at 10:32 pm

Oh and the Ritchie Bros auction that just happened is mainly heavy equipment like excavators, gravel trucks, light towers, etc. Heard that this auction took in something like $18mill more than the one last Feb for a new record for this. Sign of the times in Alberta. We keep hearing it’s all going south across the border.

#161 Dan on 03.03.16 at 3:08 pm

I kept about 15,000 for more than 10 years in some fund managed by a guy who paid 30 mil for Michael lee chin crystal at ROM (monstrosity which is on the verge to fall on your head). After all those years I did not profit.
What I put in I got out. Do not put your money in RRSP. Just put it if you have too much.