Trending

Millennials – at least 87% of them – have a smart phone with them 24/7. Two-thirds say they’d try a product recommended by a YouTube clip. Half trust social media more than the traditional kind, where people get paid to be accurate. A third get 100% of their news from blogs (now, that’s scary). Almost 80% would rather purchase an experience than a product. And there are now more millennials than Boomers, displacing that cohort for the first time in sixty years.

Social media played a massive role in convincing UK voters to dump Europe. It was pivotal in helping elect a 70-year-old populist crustacean in America. Now everybody knows Mariah Carey lip syncs and globalism is bad. Surveys show people are massively influenced (93%) by what anonymous ‘peers’ say online about… anything… while being deeply suspicious of institutions.

It’s a revolution in knowledge, for sure. Just a shame so much of the info sucks. I may not know that much about the Kardashians, but I know finance (which seems vaguely more important). The ignorance is appalling. And growing.

So, kids, here are a few facts worth remembering as this shiny new year gets rolling.

The first and best thing you can do for the future (and you have a lot of it coming) is put money into a TFSA. This is a type of investment account. It’s not a thing, or a product (nor is an RRSP). It is not for saving money, but holding investments with long-term growth potential.

Don’t open your TFSA at the bank, but rather with an online brokerage or even one of those robo jobs, because in the branch TNL@TB will guide you into a brain-dead GIC, comatose ‘high-interest’ account or mutual funds with fat fees. Instead invest your dollars into equity-based exchange-traded funds, then forget about them. This is not money to be used for a trip to Cuba or new shoes.

The contribution limit this year is $5,500, and since 2008 (if you were 18 at the time) the accumulated room is a whopping $52,000. You can make that up anytime, and replace any money you withdraw the following calendar year (but don’t).

After the TFSA, contribute to an RRSP since this results in a tax refund but (most importantly) it shifts taxes from a working year to a non-working one when you might be laid-off, taking a break, pregnant or studying. If you’re married and planning a family, consider making the contributions to a spousal plan so you can finance the coming mat leave in three years or later. If you’re working for dirt as a barista, then save the RRSP for later when a decent salary materializes, because the more income you make, the sweeter the deal.

But remember RRSPs are not necessarily for retirement since they don’t eliminate tax, merely kicking the can down the road. Every dollar coming out will be taxed (unlike a TFSA), which is why you get a break for putting it in. And eventually every RRSP has to be turned into cash flow, which could push your old, retired, wrinklie butt into a higher tax bracket.

Also understand how you’re taxed. Most people don’t. If you collect interest from a GIC, work for a paycheque or collect a rent cheque from a condo, every dollar is exposed to tax. A working guy who rents out a property, for example, must add the net rental income to his regular income and then pay tax on the total, perhaps at a higher tax rate. This is in contrast to owning an ETF (for example) where profits are 50% tax-free. So your usual tax rate drops by half. Ditto with collecting dividends, which come with a fat tax-reducing credit.

Speaking of tax brackets, the feds charge 15% up to $46,000, then 20% on the amount to $92,000, then 26% on the amount to $142,000, then 29% to $203,000 and 33% on the bit above that. Provinces jump on top, so a Mill earning a hundred grand in BC pays $24,000 in tax, then hands over 38% of everything extra. (That’s called the ‘marginal rate’.) In Ontario the tax bill is $25,000 and the marginal rate jumps to 43.4%. Ouch. At $200,000 you start handing over 51% of all your additional income to the man (but he has tats and likes weed, so it’s all cool).

Anyway, you can see why rich people like RRSPs, since this year up to $26,010 can be contributed, which means a big tax refund in a big-taxed country. Of course you also have to shell out for CPP, which runs up to $2,564 for employees and $5,128 for the self-employed, plus EI premiums, adding $836 more a year.

The point is that after-tax income is so decimated for most people – especially the young – that Millennials who choose to avoid risk and save their money (instead of investing it), or play it safe and buy a condo, choking down a big mortgage (then face recurring fees) are likely to regret it. Savers are falling behind every day as deposit rates languish, and nobody can make money renting out an apartment.

The social media meme about investing? Corporations are pariahs. Markets are rigged. Financial guys are vampires. 1%ers are the problem.

Eat-the-rich sentiment may be trending, but it’s a diversion from what matters. The problem is that we don’t have too many wealthy, but too many ignorant. Who would have thought that people who sleep and pee with their smart phones could end up so naive?

146 comments ↓

#1 Ray Skunk on 01.02.17 at 5:33 pm

I understand how I’m taxed. A lot.
And now in Ontario we have the corruptionfest that is Cap-and-Trade. Money sucked into a black hole to go… who knows where.

What a time to be alive. Happy 2017!

#2 jess on 01.02.17 at 5:41 pm

stick

Advisers helping tax evasion face fines

Accountants, bankers, lawyers and advisers who assist with tax evasion will be hit with fines as part of a crackdown on the practice.

They will face fines of up to 100% of the total they helped evade or £3,000, whichever is the highest.

The government will also be able to publicly name culprits who enable tax evasion or help move money offshore.

#3 LH on 01.02.17 at 5:41 pm

Happy 2017 folks

IC pay out Jan 31. Have earmarked most for stocks (single name). Enough real estate for now…

#4 Context on 01.02.17 at 5:48 pm

Everything is rigged today so how about the food market and where is the MSM? Here is how it works when product comes into the Toronto distribution center. A major grocery chain has the city marked out into districts with time dating. The fresh fruits and vegetables are sent out to the wealthy areas, and guess who gets the stuff about 3 days to spoil? This is nothing, as in each district there are demographic considerations, and you will find stores with different prices from one store to another with all goods sold.

#5 Steve French on 01.02.17 at 5:51 pm

Please please Mary Mother of Baby Jesus let me be FIRST?!

#6 South Etobicoke Trump Campaign Field HQ on 01.02.17 at 5:57 pm

“A third get 100% of their news from blogs (now, that’s scary).”

You’d rather they go to the Fake News cabals on the major networks or the bottom-feeding rags like the WashPost or NYT, which have been publishing hoaxes and peddling a certain globalist narrative unchallenged for years?

#7 New TFSA on 01.02.17 at 6:00 pm

just dumped $11000 into our two TFSA’s
. maxxed out

and made 11 % in each one in 2016 .

thanks GT

remember you can have two of them , one for you and one for your super duper spouse .

#8 Johnny D on 01.02.17 at 6:01 pm

Hate to say it but traditional media where people are “paid to be accurate” is failing because it’s being proven time and time again to not be the case. More and more these media outlets serve as advertisers or propaganda outlets. Example: Global news showing eager asian buyers in Vancouver who turned out to belong to a local agency.

Traditional media is also suffering from running stories that are irrelevant. CBC can only run so much stories about individual grievances some people have claiming that we’re all racist, sexist, -phobic etc etc. until everyone just tunes out.

If there’s anything i want to see in 2017, it’s that traditional media realizes what is happening and starts to make moves to do real, relevant, investigative journalism again. Until then, reading blogs and posts on social media of peoples’ anecdotal experiences is the best way to get an accurate depiction of what’s going on.

#9 InvestorsFriend on 01.02.17 at 6:06 pm

Excellent Advice

Tax breaks from the government motivate saving and investing.

It’s extremely difficult for all but the 1% or the extremely frugal to maximize both the TFSA and the RRSP and (if applicable) the RESP.

Anyone who can maximise all these tax-advantaged plans and then invest mostly in equities seems sure to end up wealthy.

I always wonder who would have savings beyond that to contribute to a personal taxable account. It would likely be the extremely frugal and the 1%, so not many people. Corporate taxable investment accounts should be common for small bsuiness owners however, as corporations cannot use RRSP and TSFA. (Though they can set up personal pension plans)

#10 ShawnG in TO on 01.02.17 at 6:13 pm

The problem with millennials is that they are so conditioned to accept what the “system” tells them. and since they are the most important demographic, the MSM is telling them to spend spend spend.

it may comes as a disappointment to you, Garth, that this blog is read by less than 4 billion millennials. sorry, they are not taking care of their financials.

i, on the other hand, encourage their spending ways. it is their self sacrifices, self enslavement, that is making my investments go up and up.

so, millennials, please continue to pay the minimum on your monthly credit card bills, buy over priced houses with big mortgages, have savings accounts or gics, invest in mutual funds with high fees. your money is transferring nicely to my bank dividends.

please don’t try to understand about the different tax brackets. the more taxes you pay, the less i pay.

if the new american government (soon, several eu governments) is hurting your feelings, i suppose i can tell you you can find colouring books at dollarama.

( disclosure: i own stocks in banks, visa, mastercard, and dollarama in my balanced diversified (by type and geography) multi-million portfolio )

#11 Dwight on 01.02.17 at 6:17 pm

Don’t replace the money you’ve taken out in previous years to your TFSA? Why not?

No. Don’t take it out. — Garth

#12 crowdedelevatorfartz on 01.02.17 at 6:23 pm

Awesome.

Millenials are now the largest cohort.
Future generations oogling their “Smarter” Phones will blame greedy Millenials for everything….

Boomers are off the hook!

#13 Long Branch Apprentice on 01.02.17 at 6:25 pm

“Half trust social media more than the traditional kind, where people get paid to be accurate”

Garth, you’re a better troll than most realize.

Paid to push an agenda would be more accurate, but hey, who’s keeping score, right?

Social media plays a massive role in giving the individual a voice, which exactly why Twitter and Facebook are becoming irrelevant, unless you want to see what your dumb aunt thinks of some new decoration she got for Christmas.

If cigarette tax is meant to discourage smoking, and alcohol tax is to limit consumption, does income tax discourage working?

It’s Monday night, and I’m going to a bar,
#FreakParty

#14 Dwight on 01.02.17 at 6:26 pm

I’m sure you meant that you should replace earier withdraws from TFSA’s “but don’t.” ???

#15 crowdedelevatorfartz on 01.02.17 at 6:26 pm

@#5 Steve-O
“Please please Mary Mother of Baby Jesus let me be FIRST?!”
*******************************************

LOL!
Dont buy Lotto Max tix
Well, if you’re a Millenial, technically you ARE first…in population size.

Feel Better?

#16 Dwight on 01.02.17 at 6:27 pm

Ok, got it. Thanks Garth.

#17 TurnerNation on 01.02.17 at 6:27 pm

The insanity of youthful leftism. They have no problem following, downloading music made by 1%er musicians or even rap artists compelling them into ‘mo money, mo babes’ whist piloting a Bentley.

Their new gods, the technology company CEOs? Hang onto their every word and buy their $1000 phone product. (How do you think they got to be 1%ers….)

SBUX is an experience destination.
Or, I was in an indie coffee shop on Queen St W in TO on weekend. Half its clientele came in wearing $1000 Canada Goose jackets with $300 Blundstone boots afoot. Making 1%ers happy, they are.

Still, this year’s phrase is “The whole world’s a stage”. 80% of “news” is mindnumbing distrction and entertainment by actors (Hi Trump.) You’re fired-up.
(Putin – is he even elected every few years anymore or just installed full time?)
As people point out the US happily collaberates with Russia on international space station. Some enemies. Some enmity. There is no us and them.

Welp I got new water filters…expect less flouoridted and harder hitting post, till they get bunged up again.

#18 Biggles on 01.02.17 at 6:28 pm

Canada is fast approaching it’s Minsky moment. Death by a thousand cuts from taxes and the relentless increasing costs of living , if the US Fed does what it intends to do in 2017 the spring of 2018 could be Canada’s Minsky moment .

#19 Brian Ripley on 01.02.17 at 6:30 pm

“The problem is that we don’t have too many wealthy, but too many ignorant.” Garth

Jan 1st is when the the new BC Home “Partnership” (“free” helicopter money) begins:
http://www.chpc.biz/history-readings/government-by-lottery

Not only that but you will be able to order a craft beer at your barbershop as of Jan 23.

Good luck BC people; you have a bet to make.

#20 I don't know on 01.02.17 at 6:31 pm

“Savers are falling behind every day as deposit rates languish, and nobody can make money renting out an apartment.” – Garth

——————————————————

Of course they can. And they have. Through massive capital appreciation.

#21 Theo on 01.02.17 at 6:32 pm

What a wallop I took at the pump today in corpse-ridden Oilberta! A week and a bit ago I filled up for 98.6 cents a litre. This morning? 114.4!

#22 ShawnG in TO on 01.02.17 at 6:43 pm

louis vuitton thanks the millennials for buying the tenth absolutely necessary fashion accessory on the credit card. and your friendly conglomerate vivendi and ticketmaster thank you for being a belieber.

#23 InvestorsFriend on 01.02.17 at 6:54 pm

Who Contributes to RRSPs?

Ironically it is the higher wage earners and especially all government workers that already have pension plans that are more likely to be in a position to contribute to RRSPs.

With good pension plans many don’t get a lot of RRSP room but most get at least some RRSP room and they tend to use it.

Moderate and low income earners without pension plans are allowed to contribute 18% of their low to moderate wages to an RRSP. And a fat lot of good it does them since most simply can’t afford it. It carries forward so they can fail to use in future years too.

Sure some people manage to save a lot on moderate incomes but most don’t. They may figure why scrimp today to avoid scrimping tomorrow?

#24 InvestorsFriend on 01.02.17 at 7:01 pm

Gasoline is still cheap as evidenced by the demand for it.

#21 Theo on 01.02.17 at 6:32 pm said:

What a wallop I took at the pump today in corpse-ridden Oilberta! A week and a bit ago I filled up for 98.6 cents a litre. This morning? 114.4!

*************************************
True that. And I am pretty sure we even dipped below 80 cents in Edmonton sometime this past Fall.

Oh well, can’t expect to get higher oil prices without an impact at the pump. And the carbon tax just added about 5 cents.

AND the roads will remain clogged with vehicles so apparently gasoline is still very much affordable.

People are free to find ways to drive less. Transit, car pool. Live closer to work and shopping. But they mostly choose not to.

#25 bdy sktn on 01.02.17 at 7:06 pm

Last night in this 29 degree paradiso.
I hear van is breaking records for cold.
Huge rays.lionfish barracuda thousands of Bella pescado everyday
Winter in canada is super if you are not in canada.

10000 years of global warming and maybe Canadian winters wlll be tolerable and non fatal to the underdressed .

#26 So naive on 01.02.17 at 7:14 pm

The point is that after-tax income is so decimated for most people – especially the young

And why is that? Give us some real info… if you can.
Let’s not be so naive…

#27 Brett in Calgary on 01.02.17 at 7:16 pm

A few less smug RE investors around the Christmas table this year, but “Calgary has only gone down a little bit”.

#28 John on 01.02.17 at 7:21 pm

In US, you can pay for things like benefits with pretax income. What a concept. Who knew. Lots of Canadian professionals braindraining to work stateside.

#29 Smoking Man on 01.02.17 at 7:22 pm

A third get 100% of their news from blogs (now, that’s scary). Almost 80% would rather purchase an experience than a product.
……

New business venture, guided tours to Seneca Niagara Casino is search of the devil that lies at the bottom of an empty bottle of Jack.

Tours of the chairman lounge. The Penthouse suit and Smoking Man’s famous booth at the Pulse Nightclub.

As a kicker you get to watch SM get loser fall down. drunk with security escourting him to the room.

Now that’s an experience.

#30 Andre Welde on 01.02.17 at 7:27 pm

Garth, thank you for your informative and intelligent financial nudging, as always.

With your dedicated praise for the TFSA, I wonder if you might have some insight. I am one if those accidental Americans (parents lived there for a couple of years and happened to get frisky in that time). Are TFSAs a trap for the million or so Canadians in my position dup to IRS issues?

I would ask a fancy accountant but I am one of those poor millenials living off of 23k a year – you’re the only financial aid I have a budget for. :)

U.S. citizenship & TFSAs don’t mix. Marry a nice Canuck girl and give her all you money. — Garth

#31 Jimbo on 01.02.17 at 7:29 pm

Millennials are a product of failed parenting strategies. Hopefully, gen X’rs will not fail our post millenial kids.

Garth, you are helping fill a void of financial common sense for the millennials.

My nieces and nephews ask me for financial advice. I tell them once they’ve read your blog we can talk. Took him a few months but I can now carry on a conversation with one of them.

I agree with this guy.
https://m.youtube.com/watch?v=hER0Qp6QJNU

#32 When Will They Raise Rates? on 01.02.17 at 7:29 pm

“Half trust social media more than the traditional kind, where people get paid to be accurate.”

Just like the RE numbers pushed in the “traditional kind”?

The “traditional kind” is now mere propaganda – ie paid to spin, distort, omit, lie and push the government and crony approved narrative – which is precisely why the smart half trust social media more.

#33 Nonplused on 01.02.17 at 7:33 pm

Nice to see a summary of the tax people actually pay because i believe it is the number one reason households are so far in debt.

Some people will say “yes but you only get in the top income bracket if you are making a pile of doe, you are in the (hated) 1%.

So you only pay 15% under $46,000 (minus the personal exemption with I think is $17,000, it’s hard to keep track of these things now that everything is computerized and I don’t check I assume it’s right). Well if you only make $46,000 a year, 15% is a big deal.

It’s like I often say about Tiger Woods’ child support: He can afford it and still have more money than he can spend. A guy making $46,000 a year is significantly impacted by his $860 per month child support (for 3 kids, Alberta 1997 table). He is likewise significantly impacted by a 15% tax because he simply cannot afford it.

And then don’t forget our poor helpless sap also pays HST on most things he buys, property taxes one way or another if he isn’t living in a cardboard box, sin taxes, school fees, fuel taxes, and soon carbon taxes, licensing fees, heck he can’t even catch a fish without paying a fee, and I am sure I am not capturing it all.

This is why he’s broke! And borrowing a lot of money!

Taxing the rich, a popular alternative, doesn’t work for 2 reasons. Taxing “rich” salary folks like dentists and lawyers just increases what they charge, which increases what you pay. They don’t pay their taxes so much as you do. This is how the “invisible hand” works. If the market dictates that dentists are “rare” enough to have a take home pay of $100,000 a year but the government imposes a 50% tax on them, well, they charge $200,000 a year and the market adjusts. I mean it doesn’t met quite there that’s a simple example but it means reduced service provides at a higher cost.

Same as taxing capital only increases the cost of capital. Subjecting bond interest for example to a 50% tax means the bond holders will want more. Just throwing numbers out but isn’t a 3% bond at 0% tax just as good as a 6% bond at 50% tax? So imposing the tax influences rates. I know bonds aren’t the same thing as capital but the same logic applies. What actually happens is probably something like bonds settle at 4.5% and both the bond holder gets less and the borrower pays more.

So you just cannot “tax the rich”. The concept is a lie. If Glamboy decides to impose an additional tax of $1000 per client per year on investment advisers like Garth, all that happens is fees go up by $1000 per year. That will probably mean less people can afford an investment adviser so many people would go without Garth’s advice, which isn’t an ideal outcome. How is that good for either Garth or his (potential, now priced out) clients? The tax reduces both supply and demand. Same thing applies to dentist and doctors. Make taxes more reasonable, and everybody could afford braces for their kids. Tax the heck out of the orthodontist and guess what? Your kid will have to live with crooked teeth unless you have a lot of money.

#34 Linda on 01.02.17 at 7:37 pm

Maybe it would be futile, but I wish that youth today were taught finance literacy in schools. Perhaps they are & slept through all the lessons because they were ‘boring’. Or maybe they think they will 1) win a huge lottery prize; 2) become a dot-com (or whatever its called now) million/billion-aire; 3) inherit huge amounts of loot from some relative (most likely the parents) or – marry rich. To be fair, so many youth have so many scholastic credentials they would in olden days have likely scored a high paying, DB job. Or not – oodles of Boomers had credentials & experience to boot. Plus when there are so many the competition is fierce. So maybe the Millenials (if they are in greater numbers than Boomers) are simply suffering from 1) oversupply & 2) disappearing demand. All that automation/computerization etc. does means lots of jobs can be eliminated……

#35 Interstellar Old Yeller on 01.02.17 at 7:38 pm

I am on parental leave. My income is (temporarily) so low that I pay “negative tax” on my eligible Canadian dividends. Interesting little feature, I like it!

#36 Damifino on 01.02.17 at 7:42 pm

Millennials – at least 87% of them – have a smart phone with them 24/7.
———————————-

I’m a boomer who has a semi-intelligent phone strapped to his side 16/7. It’s better to have a phone that’s a little bit stupid. That way, it doesn’t become your master yet remains handy to call BCAA or text the wife when necessary. Also, make it go to sleep at night when you do. Like your dog.

#37 Nonplused on 01.02.17 at 7:46 pm

PS, the same thing I was talking around applies to what “management” gets paid at a public corporation, although it is out of control at senior levels now. Why does a manager get paid 2x what his employees make? Because he should make something more take home but pays twice the tax on that something. And it all gets embedded in what you pay for the company’s products or services.

Remember folks, or learn it, the concept of “taxing the rich” is a myth. Whenever the taxes are increased in the economy, no matter where, we all pay. The plumber that just fixed your toilet has to be mindful of his tax rate when he sets his rate how much he is going to charge you. All in, the plumber might get $40 an hour, after capital expenses, overhead, and taxes the company employing him needs $140 an hour. At least $50 of that is various taxes.

#38 IHCTD9 on 01.02.17 at 7:57 pm

#2 jess on 01.02.17 at 5:41 pm
stick

Advisers helping tax evasion face fines

Accountants, bankers, lawyers and advisers who assist with tax evasion will be hit with fines as part of a crackdown on the practice.

They will face fines of up to 100% of the total they helped evade or £3,000, whichever is the highest.

The government will also be able to publicly name culprits who enable tax evasion or help move money offshore.
——

Right, and the CRA was literally begging the Canadian tax evaders implicated by the Panama papers who were rich as Trump and owed millions to “just pay the taxes due” and for that, they would receive immunity from prosecution.

Yes, Canadians must be living in fear of the CRA and would never ever cheat the government lol!

#39 45north on 01.02.17 at 8:00 pm

Jimbo: Millennials are a product of failed parenting strategies.

https://www.youtube.com/watch?v=8swEz4cJBTs

I saw it yesterday but you’re the first to say it

#40 Jungle on 01.02.17 at 8:02 pm

What is TNL@TB ?
What are the deplorable?

Moisters are the house horny, emotional and obsessively in love with housing?

#41 Deplorable Steerage Wisdom on 01.02.17 at 8:05 pm

#6 South Etobicoke Trump Campaign Field HQ on 01.02.17 at 5:57 pm

“A third get 100% of their news from blogs (now, that’s scary).”

You’d rather they go to the Fake News cabals on the major networks or the bottom-feeding rags like the WashPost or NYT, which have been publishing hoaxes and peddling a certain globalist narrative unchallenged for years?

You must be smoking mans’ cousin

#42 Context on 01.02.17 at 8:06 pm

The wealthy live in Monaco because they pay no taxes once they establish a residence. The only problem they have in life is which car to buy; will it be a Lambo or a Rolls is the decision to make while they travel about the world.

#43 Pierre on 01.02.17 at 8:07 pm

If Millennial Canadians believe that globalism is bad, then why do they encourage immigration policies which encourage mass-immigration into Canada, under the condition that those immigrants land in Canada with $$$$$?…They don’t call B.C. “BRING CASH” for nothing.

On the flipside, those Millennials will lurk on Greater Fool forums to bash immigrants and Chinese people for scapegoat. It wasn’t an immigrant from India or Pakistan or Syria who told you to take on that expensive house; it was a realtor or someone with a case of Baby Rabies!

Canadians need to learn not to blame immigrants for their bad decisions in life. Immigrants already have it bad enough in Canada with the expensive cost of living, high taxation and false promises given to them about finding a good job in Canada.

#44 Tesla rules the Heavens on 01.02.17 at 8:09 pm

#29 Smoking Man on 01.02.17 at 7:22 pm

A third get 100% of their news from blogs (now, that’s scary). Almost 80% would rather purchase an experience than a product.
……

New business venture, guided tours to Seneca Niagara Casino is search of the devil that lies at the bottom of an empty bottle of Jack.

Tours of the chairman lounge. The Penthouse suit and Smoking Man’s famous booth at the Pulse Nightclub.

As a kicker you get to watch SM get loser fall down. drunk with security escourting him to the room.

Now that’s an experience.

Not sure what you’re offerin.. I can see that any night at my local… they spew johnny walker wisdom non stop as well.

#45 RainOnYourParade on 01.02.17 at 8:10 pm

Let the comments section bounce on this one:

http://www.cnbc.com/2016/12/30/self-made-millionaire-buy-a-home.html

#46 Freedom First on 01.02.17 at 8:17 pm

#30 Andre Welde

Yes. Marry a nice canuck girl and give her all your money.-Garth

Yes. Andre. It’s the Canadian way.

Unless, of course, you are me.

#1
Freedom First
Master of Freedomonics

#47 };-) aka Devil's Advocate on 01.02.17 at 8:21 pm

Personally I:

Look forward to higher interest rates.

Don’t care about real estate values. They are what they are. If you are in you ride the tide. Mine goes up… everyone else’s goes up. Everyone else’s comes down so does mine. Even Steven. I’m in. If you’re not in yet… he who hesitates is lost. Never comes down nearly so much as it went up.

RRSPs? Defer paying tax on the income to lower income years? Sure, but most I know, including myself, are earning more now and later than we were then so…
so much for that awesome plan.

#48 Mark on 01.02.17 at 8:39 pm

“Lots of Canadian professionals braindraining to work stateside.”

Not really. TN visa issuance is down significantly over the past 15 years, even accounting for changes to visa validity (3 years instead of 1) brought in over the years. Canadians have been significantly displaced by foreign nationals from other nations, particularly India and China, as an incremental source of professional labour in the US.

If the US had a vibrant job market, then sure, there probably would be a ‘brain drain’. But as it stands, the US employers are in no mood to employ their own, nevermind Canadians.

http://cis.org/sites/cis.org/files/articles/2003/back183.gif

113k TN-1 (1-year validity) visas issued in 2001.

https://tnvisasample.files.wordpress.com/2013/10/2012_tn_issued1.jpg

4,138 TN-1 (3-year validity) visas issued in 2012.

Fairly dramatic drop as the tech sector primarily has lost interest in Canadians. Adjusted for validity, visa issuance to Canadians has dropped 90%.

#49 And The Hype Continues on 01.02.17 at 8:41 pm

Financial author David Bach indicates that home buyers are 38 times better off than renters ? I majored in math and would love to know how he came up with these figures.

http://www.cnbc.com/2016/12/30/self-made-millionaire-buy-a-home.html

#50 Context on 01.02.17 at 8:45 pm

Now this was a surprise, as someone just flew from Amsterdam to Calgary with Banff as the destination. It must be someone famous as the Canadian comments are awesome with over 800 so far, as they all seem to know him. He is going to do a bit of skiing for a week or so, and its not T2 for sure as nothing to get excited about a mere PM. I wonder who it could be?

#51 Wrk.dover on 01.02.17 at 8:48 pm

I missed another deadline to earn income to pay tax on.

When is Harper coming back to lower the biggest tax that I do pay further? ( GST )

#52 Smoking Man on 01.02.17 at 8:50 pm

Apart from Toronto Sun and National Post. All other MSM part of operation Mocking Bird.

2017 will be devastating for Canadian Liberals. Trump will expose the Climate Fraud, while Canadians are getting bitch slapped with taxes and watching the Soros failed one world govt funding machine die a fast death.

I’m signing up for the conservative party this week.

#53 Trending - MASHDEX on 01.02.17 at 8:51 pm

[…] Read more here:: http://www.greaterfool.ca/2017/01/02/trending/ […]

#54 Smoking Man on 01.02.17 at 8:51 pm

#46 Freedom First on 01.02.17 at 8:17 pm

Waiting for my book review, read it you lazy dude.

#55 Smoking Man on 01.02.17 at 9:10 pm

DELETED

#56 Smoking Man on 01.02.17 at 9:17 pm

#55 Smoking Man on 01.02.17 at 9:10 pm
DELETED

Uncle Jack

#57 Steve0 on 01.02.17 at 9:23 pm

My mom trusts the sales person at the store that they should buy the extended warranty. She will tell me how one time she used it and it really paid off. She also trusts the bank to tell her what to do with her money, and the insurance agent to direct her in the right direction.

The last election she would talk to me about how she didnt think “Trudeau was ready” and how she didnt like Harper because of the senate scandals. Both of which I viewed as canned media propaganda (Trudeau is just a cog in the liberal machine and has more than enough experience behind him, and the senate scandal was a giant waste of time and money don’t sweat the small stuff)

The BS is everywhere out there.

The newer generations uses the internet to question everything and to try and get a sense of what the truth really is. They read reviews before they buy something, they don’t even want to talk to the dinosaur sales person at the store / bank / insurance.

That lack of trust brought me here. Garth, I don’t trust your blog 100% without questions, but I view it as a valuable tool that I can use to form my own opinion.

Also, don’t worry about my mom, she has my dads pension, and no matter what she chooses, that next pension payment is coming and she will be alright. For me, the stakes are higher, but I will be alright too (balanced and diversified).

PS: When you talk about RRSP’s, why dont you mentioned how powerful they are for an early retirement? To me, thats the real prize

#58 mariah on 01.02.17 at 9:28 pm

Perhaps millenials are on to something:

http://www.economist.com/news/business/21711909-what-martin-luther-did-catholic-church-needs-be-done-business-gurus-management

#59 RainOnYourParade on 01.02.17 at 9:30 pm

Millennial’s biggest mistake:

http://www.cnbc.com/2016/12/30/self-made-millionaire-buy-a-home.html

#60 FritoPaw on 01.02.17 at 9:44 pm

OMG thank you for pushing the TFSA as the priority investment. I am early retired (age 51, 5 years ago) and KNOW FOR SURE that if I had access to TFSA from the time I was 25 (when I started investing for retirement) I would be a happy camper right now. People may think the slight reduction in tax today is the best thing that ever happened to them, but the best thing is not having to think about tax consequences when they withdraw money.
What happens when you’re retired and want to buy a new vehicle? Add that amount to your living expenses and you find yourself in a different bracket. Most people will only have RRSP type alternative funds to withdraw from over CPP/OAS. All taxable. Believe me, I am in it and would love to have different options.

#61 For those about to flop... on 01.02.17 at 9:48 pm

Maybe I have been looking at my TFSA all wrong.

I have been thinking of it in the traditional sense that I put the money in ,invest it and it will help with my retirement.

But with how much I earn each year and how much personal tax I pay roughly at the crossroads,maybe I am just putting money in my TFSA and hoping to gain enough each year to replace the amount I paid in personal taxes…

M42BC
M64WI

#62 Lili on 01.02.17 at 9:52 pm

Garth, no bonds in the TFSA portfolio, not even bond based ETF? Why not? Isn’t more balanced?

#63 CP on 01.02.17 at 10:06 pm

Can Garth or a qualified person comment on the RBC notice for TFSA:

“Subject:IRS Rule Section 871(m) Regarding U.S. Source Income
Date:20 Dec 2016 at 11:30 AM ET
Section 871(m) Phase 1 of the U.S. Internal Revenue Code is new legislation set to take effect beginning January 2017. This legislation is being implemented by U.S. regulators in an attempt to eliminate former tax arbitrage opportunities for non-U.S. persons/entities with investment and TFSA accounts dealing in financial securities such as equity-linked notes, options, fixed-income, and ETFs that reference U.S. assets which pay income such as dividends or interest.

Prior to the enactment of 871(m), equity-linked securities were generally not subject to withholding tax when the reference security paid a distribution. The new legislation means that eligible U.S. securities will now be subject to a 30% withholding tax (or 15% for accounts that are documented U.S. purposes).

To learn more about IRS Rule Section 871(m), please visit the IRS website or speak to a qualified tax professional.”

Should I worry about being taxed 15-30% on US dividend stocks in TFSA as a Canadian resident?

Thank you.

Yes, withholding tax will apply. — Garth

#64 WUL on 01.02.17 at 10:09 pm

Turner’s oft repeated seminars on TFSAs and RRSPs are the only courses I have maintained a passing grade in.

Tomorrow my wife will remove another healthy dollop of legal tender out of her RRSP tax free and top up her TFSA to help us on our way. Thanks Hon. Bon Vivant.

Is this a great country or what?

#65 crowdedelevatorfartz on 01.02.17 at 10:10 pm

Hmmmm
Govt Hack part deux?

Donald Trumps’ Russian friends hacking US Customs?
Or China playing silly bugger?

#66 crowdedelevatorfartz on 01.02.17 at 10:13 pm

@#56 Smoking Man.

Yo ! Smokey!

Try the Budweiser ‘Prohibition” beer.
It isnt horribly bad and it’ll give your liver a break.
1 billion devout muslims cant be wrong.
Happy New “Beer”

#67 Interstellar Star Stuff on 01.02.17 at 10:17 pm

Ah millenials…..have worked with some amazing kids…. but but

The phones, the phones!!.. if it doesn’t appear on the screen it is completely irrelevant to them what ever the issue

When the plane lands is the funniest.. and they have to instantly resume the hundreds of simultaneous text conversations they have endlessly ongoing about ..well nothing

but this pales in comparison to the colouring books.. spent 6 hours next to two of them colouring!!!… colouring fer f sakes in theri aduly colouring books.. and they stayed within the lines.. no hope there

#68 WUL on 01.02.17 at 10:38 pm

Perhaps I am onto something (purely accidental). Picture a 25 year old facing the debate of RRSP (tax deduction that year vs only deferred remittances later) or TFSA contribution (unused limits carried forward). Now blend in the stats on the likelihood of periods of unemployment, illness, disability, travel, mat leave, pat leave or other low or no income periods. Statistical certainties a 25 year old faces. In those stretches you transfer the RRSP moolah to the TFSA. Dope!

#69 Self Directed >> Gold on the rise? on 01.02.17 at 10:39 pm

Anyone buying Gold miner stock? Took a beating since Nov 8th, but seem to be bouncing back… and there’s talk of more ‘base building’ starting early this year.

I’m not a bullion licker, just wondering if anyone registers this as an opportunity, or is gold still a LMFAO stupid buy?

Ross Clark – Equity Markets, Crude’s strong year end performance and Gold in 2017. (seek to 5:35)

http://www.howestreet.com/2016/12/31/this-week-in-money-85/

#70 Victor V on 01.02.17 at 11:21 pm

Fire crews begin demolition of North York mansion following New Year’s blaze

https://www.thestar.com/news/gta/2017/01/02/fire-crews-begin-demolition-of-north-york-mansion-following-new-years-blaze.html

#71 No Mercy on 01.02.17 at 11:22 pm

34 Linda on 01.02.17 at 7:37 pm

Maybe it would be futile, but I wish that youth today were taught finance literacy in schools
———–

Why would public schools, in Canada, do that?

They are teaching are kids socialist thoughts and weak math skills.

Financial knowledge must be thought by parents. I am so proud about my tween kid with adhd and dyslexia asking me .. I got 1K in the bank and you told me if I was an owner (shareholder) of this bank I would make money.

Tomorrow he and I will go get an online investment account so he learns what preferred shares and investments means.

My father showed me what investment was from looking at stock prices and news on a newspaper.

Time to teach my kids.

You should do the same.

#72 DZH on 01.02.17 at 11:24 pm

Mark – what about h1b, j1 extension, f1 and other tickets to green card? TN hardly seems a sufficient measure. All my smart friends moved stateside, and while that’s just anecdote, it happens none of them used TN. I didn’t when I moved (and won’t when I move back again…)

#73 Barb on 01.02.17 at 11:30 pm

#34 Linda on 01.02.17 at 7:37 pm
” I wish that youth today were taught finance literacy in schools.”

—————————–
Me too.
But that would require a modicum of knowledge on the part of the educator.

#38 IHCTD9 on 01.02.17 at 7:57 pm
“the CRA was literally begging the Canadian tax evaders implicated by the Panama papers who were rich as Trump and owed millions to “just pay the taxes due” and for that, they would receive immunity from prosecution.”
———————————
How about the gazillion dollars that were already gone? i.e. the Bronfmans ($800M back in 2000), etc. etc.
Read about “the favoured few”:
http://www.hiddenmysteries.org/conspiracy/reststory/bronfmanevade.html

The Occupy Movement opened many people’s eyes to what should and should not be considered fair.

While the unrich go to jail for trivial things, the perpetrators of white collar crime may receive a slap on the wrist. Or (gasp) the *public shame* of getting their name on page 1 is considered sufficient penance?

Did anybody (say, from Goldman Sachs, who started it) go to jail for their role in the sub prime fiasco in the USA?
Doesn’t matter obviously, as GS stock has doubled in 5 years.

It’s one thing to make money in the stock market, but quite another to invest your money with criminal corporations.

#74 Ace Goodheart on 01.02.17 at 11:36 pm

“The social media meme about investing? Corporations are pariahs. Markets are rigged. Financial guys are vampires. 1%ers are the problem.”

If that’s honestly what the millenials think then the rest of my life is going to be like fishing in a bucket full of fish.

Of course you’ve gone and convinced the best and brightest of them that everyone should ignore the fundamentals of investing and put their money in index funds.

#75 InvestorsFriend on 01.02.17 at 11:44 pm

Getting Money Out of the RRSP

#68 WUL on 01.02.17 at 10:38 pm said:

Perhaps I am onto something (purely accidental). Picture a 25 year old facing the debate of RRSP (tax deduction that year vs only deferred remittances later) or TFSA contribution (unused limits carried forward). Now blend in the stats on the likelihood of periods of unemployment, illness, disability, travel, mat leave, pat leave or other low or no income periods. Statistical certainties a 25 year old faces. In those stretches you transfer the RRSP moolah to the TFSA. Dope!

***************************************
What you describe could work if there is a spouse with a high income and no such interruption in earnings.

With no such high income spouse, more likely they spend anything in the TSFA during that low / no income period and then take out from the RRSP at a low tax rate and spend that too.

A fat retirement nest egg is not compatible with more than the briefest of periods of low / no income.

#76 Tony on 01.02.17 at 11:52 pm

Re: #21 Theo on 01.02.17 at 6:32 pm

The cities are so small in Alberta you could ride a bike everywhere if not for the harsh cold. A tank of gas must last what 6 months or so?

#77 Tony on 01.02.17 at 11:56 pm

Re: #27 Brett in Calgary on 01.02.17 at 7:16 pm

20 to 25 percent as evidenced by the fall since October 2014 on mls is not small. Try selling a house in Calgary and you’ll find out fast.

#78 New Age on 01.03.17 at 12:03 am

“A third get 100% of their news from blogs (now, that’s scary).”

2/3 rds know that’news’ on mainstream networks (CNN, NYT, etc.) is propaganda. Of these, it benefits 50% so they say quiet,. The other 50% of the people rant to no avail. Why?

Because the remaining 1/3 rd are people with below average intelligence who follow the MSM and think anything on CNN, etc. is real.

Hence the majority.

#79 SunShowers on 01.03.17 at 12:10 am

Not to discount your excellent investing advice Garth, but the “problem” with millennials isn’t that they’re not invested properly, it’s that they don’t have the cash to invest at all.

I’m sure you remember all the statistics you post about many Canadians not being able to miss a paycheck, not even having a few thousand saved, etc etc. Seems to me those sorry situations are most likely to apply to the most financially vulnerable segment of the population: millennials.

They’re essentially students who graduated with an appreciable amount of student debt, just in time for the biggest economic turdfest since the 30s to chill hiring across the globe.

In Canada we’re still seeing consistent reports of full time job losses (but gains in part time service sector jobs so it’s ok right!?).

So unless they’re 25+ years old living in mom’s basement, I’m not sure how you expect a 30 hour per week barista with a B.Sc to afford to invest anything.

#80 FritoPaw on 01.03.17 at 12:58 am

WUL:
Not sure what you mean about free transfer from RRSP to TFSA. Any withdrawal from RRSP is included in income. If only income is your $5500 transfer then yes, no tax but as a transfer to TFSA expecting a tax free withdrawal,not so much.

#81 InvestorsFriend on 01.03.17 at 1:11 am

Saving Tax Can be Very Costly

#73 Barb on 01.02.17 at 11:30 pm mentioned:

How about the gazillion dollars that were already gone? i.e. the Bronfmans ($800M back in 2000), etc. etc.

*****************************************
True, but it reminds me of a different “case” that I followed very closely.

Most of Conrad Black’s troubles arose because back then non-compete payments were (for some crazy reason) non taxable.

When the publicly traded company (Hollinger) that Conrad controlled sold a newspaper part of the price went to Conrad (and a few others) as non-compete payments. He could just as well have paid himself a fat bonus on the sale but the non compete was non taxable.

In a few instances the buyers were totally uninterested in structuring any of the payment as a non-compete and in one or more of those instances the non-compete payment was never properly approved, with the right paperwork, by the buyer or the Hollinger Board. (Clerical “underlings” had failed Conrad!)

In substance these were payments that Hollinger willingly meant to go the Conrad. In form the payment was found to be not properly authorized and taken fraudulently in exactly one case (after all appeals, initially about four were found offside).

That alongside pictures of Conrad (perhaps innocent mindedly) moving some boxes sent him to jail.

Had he just taken the money as a bonus and paid the income tax, the shareholders might have grumbled but Conrad would not have gone to jail.

It was a VERY expensive way to avoid income taxes.

As to the shareholders who started the whole complaint process against Conrad Black they ended up with a bankrupt company while an army of auditors, receivers and lawyers made out (legally) like absolute bandits.

#82 Polls R Phake on 01.03.17 at 1:14 am

The Auzzies are collecting taxes from “speeding” bicycles and now float tubes. This shit is getting out of control.

https://www.armstrongeconomics.com/world-news/taxes/police-given-dui-tickets-when-on-a-raft-in-australia/

#83 BC_Doc on 01.03.17 at 1:35 am

#30 Andre Welde on 01.02.17 at 7:27 pm asks:

“Are TFSAs a trap for the million or so Canadians in my position due to IRS issues?”

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

@Andre– If you’re looking for some more advice on how to live your financial life as an Accidental American, I would suggest heading over to isaacbrocksociety dot ca. I came to Canada decades ago as a poor graduate student and became a proud Canadian citizen 15+ years ago. While I consider myself to be Canadian and Canadian only, the US consulate refused my application to relinquish my US citizenship. Ask me if I’m an American and I will tell you no, I’m Canadian only. That’s what I tell my bank and my accountant. I haven’t filed a tax return with the IRS since I moved to Canada over 25 years ago and I have no plans to start doing so post-FATCA. As a Canadian citizen, I take advantage of all financial products offered to me including TFSAs, RRSPs, and RESPs. As a Canadian citizen, shouldn’t you be able to also?

#84 Built to Spec on 01.03.17 at 3:00 am

today’s obligatory Trump smear:
“70-year-old populist crustacean” elected due to massive social media

– so America was duped into electing a really old 70 year old man, instead of … 69 year old Hillary? maybe, in addition to the fact that there’s NO DIFFERENCE in the candidate’s ages, voters took note that Hillary’s energy level was like a 90 year old (barely made any campaign appearances, was caught on video literally collapsing, etc.) while Trump’s health and energy were through the roof;

– there was social media on both sides, and generally much more in favour of Hillary, considering that Trump supporters were not that outspoken due to Democrats’ intolerance and thuggish behaviour. No Garth, social media didn’t trick Americans into voting for Trump. The prospect of continuing hard left policies on the economy and foreign policy, and the disgust with political corruption were probably enough to sway most voters.

– “populist” – you mean like doing the will of the people? Like e.g enforcing immigration laws on the books, which both parties blatantly failed to do. That’s populist and a good thing.

I agree that trade barriers are populist and not so good, but why not see what he actually does before assuming the worst? Fundamentally, Trump is pro-business (in distinct contrast to the Democrats), and will be advised by some smart people.

– “crustacean”? I can think of worse metaphors for Hillary

other than that – great blog post as usual! I just wish you’d stick to real estate and investing …

#85 Mark on 01.03.17 at 3:03 am

“Mark – what about h1b, j1 extension, f1 and other tickets to green card? TN hardly seems a sufficient measure. All my smart friends moved stateside, and while that’s just anecdote, it happens none of them used TN. I didn’t when I moved (and won’t when I move back again…)”

Oh no doubt, there’s people who do use other visas. However, TN is by far the easiest one to get for Canadian professionals. The application fee, a valid job offer, proof of qualifications, and $56 (cash, presented so as to not look like a bribe!) seals the deal with relatively little discretion accorded to the examining officer! So when the numbers have collapsed as much as they have, it indicates strongly that the out-migration of Canadian talent isn’t as significant as it once was.

I’m not aware personally of any policy that has made it easier or more desirable for Canadians to use the ‘other’ visas. H-1B is a hassle comparatively speaking (and is expensive, subject to quota, etc.), and eligibility for the others is very limited. When the US employers realized they could hire Indian nationals cheaper than they could hire Canadians, and semi-indenture them with H-1B — they pretty much gave up on Canadians.

#86 Mark on 01.03.17 at 3:10 am

“20 to 25 percent as evidenced by the fall since October 2014 on mls is not small. Try selling a house in Calgary and you’ll find out fast.”

Yeah that’s being conservative. Didn’t I write a few times last year that the better Realtors in Calgary wouldn’t even bother touching listings unless their prospective clients were willing to go 20% lower than 2011 (peak) prices? That’s just how dire things are.

Sales mix changes in Calgary are extremely prominent. The jobs being lost are very high paying jobs, particularly in construction, O&G management, etc. Lower end jobs still business as usual, and not very many of them have been lost.

Of course you’ve gone and convinced the best and brightest of them that everyone should ignore the fundamentals of investing and put their money in index funds.

Indexxing works great until it doesn’t. At some point, the cost of capital will become so high for companies not in the index, that investing outside the indices will lead to outperformance. I’m not sure where the ‘tipping point’ occurs, but last year was an illustrious example of an instance where allocating just 20% of my portfolio to non-index investments led to dramatic outperformance. While allowing me to mostly sleep at night.

#87 Cowtown confused on 01.03.17 at 4:35 am

Had this link sent to me today. Interesting…

https://www.google.ca/amp/business.financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra/amp

#88 Wrk.dover on 01.03.17 at 6:42 am

CP24 this mornings crawl…

Report says total compensation for top 100 CEOs of TSX listed public companies rose 6% to $950 million in 2015.

That has to be a new all time low, barely over 1/2 of a single digit raise….the inhumanity!

#89 Dharma Bum on 01.03.17 at 6:49 am

#60 Frito Paw

“…the best thing is not having to think about tax consequences when they withdraw money.”
——————————————————————-

I plan to retire in a year from now. I’ll be 58, with about $4 million. $3 million in unregistered investments and $1 million in an RRSP. (This does not include the value of my mortgage free home, which I plan to stay in for now.)

Can someone explain what the best strategy will be for withdrawal? My only “income” during retirement will be income generated from the investments (dividends, interest, capital gains).

Do I leave the RRSP alone until the unregistered stuff is drawn down, or until the government forces me to start taking it out (at age 71, I believe) at the proscribed rate?
Or is there some optimum blend to minimize taxes?

Please give me your advice on this matter.

#90 jess on 01.03.17 at 7:44 am

#8 Johnny D on 01.02.17 at 6:01 pm

“academics “who create false studies
http://retractionwatch.com/

http://retractionwatch.com/2016/12/31/weekend-reads-fake-news-science-not-stress-science-another-hilarious-sting/

e.g.
Science Paper Rejected? Buy Space in The NYT.
A recent, two-page ad in the science section of The New York Times featured the scientific musings of a paying author. Is that unusual?
12.29.2016 / By Robin Lloyd /

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

Sokal’s Hoax

Steven Weinberg

The New York Review of Books, Volume XLIII,
No. 13, pp 11-15, August 8, 1996
http://www.physics.nyu.edu/sokal/weinberg.html

#91 James on 01.03.17 at 8:00 am

I’ve decided to take a year off work. After diligently stuffing my RRSP while making 130k/yr in advance to withdraw in this non-working year, I’ve now read that there is a 30% witholding tax on top of the income tax charged on RRSP withdrawals. So where exactly is the tax advantage here? I’m confused.

There is no tax on top of the withdrawal – it is a portion of the removed funds which is held by the financial institution to be applied against your tax liability. If you reduce the amount of the withdrawal, this can be lessened per withdrawal. In any case, if your income is low or non-existent during the year you are living on RRSP funds, you will recover the tax when you file your return next year. — Garth

#92 James on 01.03.17 at 8:22 am

Thanks for taking the time to respond to my question above!

#93 The Technical Analyst on 01.03.17 at 8:40 am

Great post!

#94 Ace Goodheart on 01.03.17 at 8:43 am

RE: #1 Ray Skunk:

“I understand how I’m taxed. A lot.
And now in Ontario we have the corruptionfest that is Cap-and-Trade. Money sucked into a black hole to go… who knows where.”

What I’m worried about is this “cap and trade” tax on everything will work out the same way as the tire tax. Basically you get this bureaucracy that builds up around the money, supposedly to do things with it in the “public interest” and instead what you get is a bunch of highly paid public servants feathering their own nests and living the good life while the rest of us pay 5 cents per litre more for gasoline and our natural gas bills go up.

That is what usually happens.

#95 Stock Picker on 01.03.17 at 9:06 am

I’m the past few years it has been plainly exposed that the traditional media is not an unbiased source of fact only information. We have seen through Wiki that reporters have been actively perverting democracy by hoodwinking the public with fake news. Not mentioning any names for legal reasons but msm is the least likely place to mine for truth.

On the other hand I give Garth credit for having one tradable idea last year that made me mega bucks . Thx btw

Example of fake news being fabricated by major MSM please? — Garth

#96 IHCTD9 on 01.03.17 at 9:11 am

#79 SunShowers on 01.03.17 at 12:10 am

Not to discount your excellent investing advice Garth, but the “problem” with millennials isn’t that they’re not invested properly, it’s that they don’t have the cash to invest at all.
_________________________________

Here:

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Play around with this ^.

Millennials have one thing going for them – time. Save 5K and invest it, throw 500 in per month, and keep it up for 40 years and that would be almost 800G’s by 65 at 5.0% which is totally realistic over the long term. The above should be doable even on minimum wage.

Pay yourself first, let your OSAP creditors scream and wait another month, start early.

#97 IHCTD9 on 01.03.17 at 9:35 am

#87 Cowtown confused on 01.03.17 at 4:35 am
Had this link sent to me today. Interesting…

https://www.google.ca/amp/business.financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra/amp
_____________________

Heard about this a while back.

The tone from the CRA is concerning here, “you’re not allowed to make that much money in a TFSA…”

I really am wondering what things will be like 20 years from now if the CRA is accusing folks of being “too successful” with their trading efforts and dinging them right now in 2016/2017…

Nothing to do with investing ‘success’ and all about ensuring TFSAs are not used for generating tax-free business income through commercial activities such as day trading. That’s reasonable. — Garth

#98 Hudak wants Millenial Aid Package on 01.03.17 at 9:53 am

https://www.bloomberg.com/news/articles/2016-12-21/lend-millennials-cash-for-houses-ontario-realtor-chief-says

#99 IHCTD9 on 01.03.17 at 10:18 am

#75 InvestorsFriend on 01.02.17 at 11:44 pm
Getting Money Out of the RRSP

#68 WUL on 01.02.17 at 10:38 pm said:

Perhaps I am onto something (purely accidental). Picture a 25 year old facing the debate of RRSP (tax deduction that year vs only deferred remittances later) or TFSA contribution (unused limits carried forward). Now blend in the stats on the likelihood of periods of unemployment, illness, disability, travel, mat leave, pat leave or other low or no income periods. Statistical certainties a 25 year old faces. In those stretches you transfer the RRSP moolah to the TFSA. Dope!

***************************************
What you describe could work if there is a spouse with a high income and no such interruption in earnings.

With no such high income spouse, more likely they spend anything in the TSFA during that low / no income period and then take out from the RRSP at a low tax rate and spend that too.

A fat retirement nest egg is not compatible with more than the briefest of periods of low / no income.
____________________________________________

There are better ways of draining your RRSP stash if you’re willing to think outside the box. All you need is a low reported income late in your working career for a long time – all while not reducing your take home pay.

#100 IHCTD9 on 01.03.17 at 10:55 am

http://www.cbc.ca/news/canada/calgary/alberta-carbon-tax-impact-climate-change-canada-1.3895133

Look at all the smiling single Moms who are now getting paid by other Albertans because of climate change.

Meanwhile the intact family units with 3-4 kids who are getting hosed big time and wondering where to put the knife – aren’t too sure where this tax may be headed…

Funny how these government schemes always seem to involve- partially or in whole – a forced wealth transfer to a pet population every time no?

No word on how many C02 scrubbers Notley will be building with the proceeds of the “carbon tax”, or any details at all regarding said “eco-friendly” projects.

So it looks pretty clear now, it was a cash grab all along with little planned to “help” the climate. I imagine “eco-friendly” projects will involve things like subsidized daycare and tax free feminine hygiene products.

So long Alberta, nice knowing you…

#101 ccc on 01.03.17 at 11:28 am

I’m pretty sure every generation tends to assume the one following behind is always less “worthy” and savvy than they were during their youth. But I’m sure the opposite happens as well. The Kardashians have no life message but understand all the social avenues to get their blurb across the world. Plus some very noticeable booties…
So Garth, about time for you to team up with a Millennial of a third kind, the type that will bring some agile development to this pathetic blog with a bit of Ruby_on_Rails and a liquid template a la Shopify. This Millennial can start working on the pathetic comment section lacking all sorts of functionality and then move along to make sure your message travels across all the social media platforms. The Millennial could help as well your financial gurus improve their pathetic MS Excel charts with some fresh Javascript D3 and Python Matlotlib and Seaborn. Its a different world out there as you pointed out and big tech knows it, banks understand it while they work to implement blockchain tech, etc. There you go, my two cents on improving on the tech side. Not sure much can be done on the booty front though…

#102 Eks dee Sipal on 01.03.17 at 11:30 am

Example of fake news being fabricated by major MSM please? — Garth

Here you go. Do you see the dummy? (Don’t answer that).

https://www.powned.tv/media/118457/amisamri.jpg?anchor=center&mode=crop&quality=80&width=1024&height=576&rnd=131269744060000000

Seriously? Now answer the question. — Garth

#103 IHCTD9 on 01.03.17 at 11:31 am

Nothing to do with investing ‘success’ and all about ensuring TFSAs are not used for generating tax-free business income through commercial activities such as day trading. That’s reasonable. — Garth
________________________

I agree that is reasonable, hopefully the CRA makes it crystal clear what is ok and what is not – a quickie statement on the website would be good enough for most folks.

#104 For those about to flop... on 01.03.17 at 11:34 am

#89 Dharma Bum on 01.03.17 at 6:49 am
#60 Frito Paw

“…the best thing is not having to think about tax consequences when they withdraw money.”
——————————————————————-

I plan to retire in a year from now. I’ll be 58, with about $4 million. $3 million in unregistered investments and $1 million in an RRSP. (This does not include the value of my mortgage free home, which I plan to stay in for now.)

Can someone explain what the best strategy will be for withdrawal? My only “income” during retirement will be income generated from the investments (dividends, interest, capital gains).

Do I leave the RRSP alone until the unregistered stuff is drawn down, or until the government forces me to start taking it out (at age 71, I believe) at the proscribed rate?
Or is there some optimum blend to minimize taxes?

Please give me your advice on this matter.

//////////////////////////////

Hey Dharma , my advice on this matter is that you have 4 million dollars plus a house ,so if anyone on here is a candidate to go and see a professional financial planner and have to pay for this service it is you.

You could take someone’s unqualified advice on this matter but that would be foolish.

Unless you are just like your brother,whose name is Cheap Bum…

M42BC

#105 Darryl on 01.03.17 at 11:41 am

#94 Ace Goodheart on 01.03.17 at 8:43 am
RE: #1 Ray Skunk:
“I understand how I’m taxed. A lot.
And now in Ontario we have the corruptionfest that is Cap-and-Trade. Money sucked into a black hole to go… who knows where.”
What I’m worried about is this “cap and trade” tax on everything will work out the same way as the tire tax. Basically you get this bureaucracy that builds up around the money, supposedly to do things with it in the “public interest” and instead what you get is a bunch of highly paid public servants feathering their own nests and living the good life while the rest of us pay 5 cents per litre more for gasoline and our natural gas bills go up.
That is what usually happens.
————————————————————–
Yes
That’s exactly what will happen .

I just listened to some Idiot on BNN say how this will only affect carbon producing activities and he down played the whole thing . What isn’t carbon producing ?

It will all snowball to everything costing 4% more in my opinion . And that is only the first step up . This is a five year phase in from what I have heard in the past.

Killing us softly with Liberal Love. :(

#106 Wrk.dover on 01.03.17 at 12:01 pm

#96 IHCTD9 on 01.03.17 at 9:11 am

Millennials have one thing going for them – time. Save 5K and invest it, throw 500 in per month, and keep it up for 40 years and that would be almost 800G’s by 65 at 5.0% which is totally realistic over the long term. The above should be doable even on minimum wage.

———————————————————–

When I was young and poorly paid I could save none of that, but where have you arrived now with this practice that you preach?

Beyond the $800,000 mark? You are pushing sixty right?

#107 46 and 2 on 01.03.17 at 12:13 pm

I really can’t decide which voting group are dumber,

1) The USA rust belt
2) Alberta voters
3) Canadian Liberals

Tough one, although I do know this, thanks to questionable intellect and belief/hopes in campaign “promises” we are all going to start paying for whatever is coming at us starting this year. Personally, I don’t think Trump will last long, not sure about the so-called leaders across the hinterland. Interesting times.

#108 Old Dog on 01.03.17 at 12:27 pm

“#89 Dharma Bum

I plan to retire in a year from now. I’ll be 58, with about $4 million. $3 million in unregistered investments and $1 million in an RRSP. (This does not include the value of my mortgage free home, which I plan to stay in for now.)

Can someone explain what the best strategy will be for withdrawal? My only “income” during retirement will be income generated from the investments (dividends, interest, capital gains).

Do I leave the RRSP alone until the unregistered stuff is drawn down, or until the government forces me to start taking it out (at age 71, I believe) at the proscribed rate?
Or is there some optimum blend to minimize taxes?

Please give me your advice on this matter.”

I have a similar problem Dharma. First you don’t need to draw down that 3 million. Live off the dividends and continue to grow it. Eat the eggs, not the chickens. As for your RRSP I draw down mine a certain amount each year and donate that to charities of my choice. You can either donate cash or shares. That’s a win win for everyone. You’ve been fortunate, it’s time to give something back to others now. You help others and get a tax deduction at the same time. You can also adjust your income by the types of shares you own. In other words how much they pay out in dividends. Helping others is part of being wealthy. Besides you’ll feel good.
Good luck in retirement.

#109 milleniallmoose on 01.03.17 at 12:35 pm

Hi Garth!

At what income do you recommend contributing the the RRSP? Also, if I have a work matching pension, is there any use in contributing more to my personal RRSP?

Thanks! :)

#110 Ace Goodheart on 01.03.17 at 12:40 pm

RE: #100 IHCTD9:

We’re getting hosed. Very likely. This is just another massive tax grab disguised as an environmental program.

So when they tax my natural gas that I heat my house with, what am I supposed to do, cut down the trees in the backyard and use the wood for heat? There is no other way to heat your house. Electric heat costs literally thousands of dollars per month to heat a house with. It would likely cost about $12,000 per year to heat my house with electricity (and it’s a small house). No one can afford that. What else is there? A $50,000 geo thermal installation, that no one can afford? Just don’t heat the house and wear a warm sweater? They are not giving us any alternatives.

I went ahead and ordered a Tesla model 3 when this whole carbon tax thing came out, as I recognized that gasoline is soon going to be very expensive and there will be tons of rebates for electric cars. Still waiting for delivery. They say maybe early 2018……Apparently all the electricity it will use will be sold to me at subsidised rates and the Tesla itself will have a massive rebate. So I am just trying to get some of the money they are taking from me, back again…….

But I don’t know what else I could do. I have to heat the house, and everything else is carbon dependent.

If governments want to reduce carbon output, the solution is not to tax the crap out of everything without giving people any alternatives.

#111 InvestorsFriend on 01.03.17 at 12:40 pm

Rich Dharma Bum Seeks Advice from the blog dogs

#89 Dharma Bum on 01.03.17 at 6:49 am said:

I plan to retire in a year from now. I’ll be 58, with about $4 million. $3 million in unregistered investments and $1 million in an RRSP. (This does not include the value of my mortgage free home, which I plan to stay in for now.)

Can someone explain what the best strategy will be for withdrawal? My only “income” during retirement will be income generated from the investments (dividends, interest, capital gains).

*************************************
Not sure you need lot of advice given your success.

Tell us how you managed to accumulate $3 million unregistered. Profits from a business? Savings from a very high salary? Big returns in the market?

As far as advice figure out your marginal tax rate from dividends and interest. If this still keeps you in a lowish tax bracket and you need/ want more cash probably go to RRSP first and take some while trying not to move to a higher tax bracket. You may find you can’t get much/any RRSP out at a low tax rate. Well, no sympathy as that was the deal you entered with RRSP savings. You made a lot of money. You now may face a lot of tax. Where is the issue?

#112 RentYVR on 01.03.17 at 12:57 pm

“nobody can make money renting out an apartment.”

Disagree – My rent has increased by 46% since I moved to YVR in 2012 (I’m stuck in one of those non-rent controlled fixed-term leases). Add to this the fact that many landlords don’t report their income (and the CRA is useless when it comes to actual enforcement of RE matters). Some clearly are make money renting out apartments….

#113 Context on 01.03.17 at 12:59 pm

They are taxing carbon dioxide because its bad, but isn’t this what plants and crops need to grow and survive. Science must be all wrong as vegetation absorbs carbon dioxide and through a process called photosynthesis converts it into oxygen so us humans can breathe and survive. What is going on here?

#114 darkselling on 01.03.17 at 1:08 pm

Hey Garth,

I (maybe others too) would appreciate a new blog post to start the year dedicated to portfolio allocation and some suggestions. I’m moving $11,000 combined into the wife and my TFSA and the kids RESP’s in the next few weeks.

Currently my TFSA’s are maxed (excluding 2017 contribution) and in a basket of individual stocks that I don’t want to get more “into”.

I’m a 37 year old male, earning ~130,000 per year, wife earning ~$60,000 per year, I’ve got two full TFSA’s, a $30,000 cash/margin account, a DC pension plan at about $160,000, some investments in private companies of approx $50,000 and a mortgage of about $400,000 on a house worth ~$500,000 and have no intention of moving for another 10 years.

Basically I want to stabilise my portfolio with the kind of ETF’s you suggest but don’t know where to start. Also as some of the other investments roll over / sell / reach their goals I’ll move them into ETF’s. The private companies I can’t sell now and they offer good returns due to the one time cap gains exemption for selling a business (lifetime limit of $500k) and the current basket of stocks in the TFSA and cash/margin I’m comfortable holding for the near term but don’t want to add more (hence the stabilise).

Thanks!

#115 InvestorsFriend on 01.03.17 at 1:24 pm

When to Contribute to RRSP

#109 milleniallmoose on 01.03.17 at 12:35 pm
Hi Garth!

At what income do you recommend contributing the the RRSP? Also, if I have a work matching pension, is there any use in contributing more to my personal RRSP?

Thanks! :)

************************************
Probaly only makes sense if your marginal tax rate is at least 30% or so. The cutoff varies by Province

http://www.taxtips.ca/marginaltaxrates.htm

And I believe you need to add 11,474 to the taxable income thresholds for the basic personal exemption. All in all this probably puts you around $60k in most provinces.

First you would need to have the money!

If you are disciplined (and will not later take it out) use TFSA first.

Given the TFSA the RRSP is now mainly of benefit to higher income earners, think 75k plus and especially those high income earners without pensions. Really benefits those at $150k plus with no pension who might be able to afford to contribute the maximum and at high marginal tax rates (for big tax savings).

#116 Polls R Phake on 01.03.17 at 1:27 pm

#95 Stock Picker on 01.03.17 at 9:06 am
I’m the past few years it has been plainly exposed that the traditional media is not an unbiased source of fact only information. We have seen through Wiki that reporters have been actively perverting democracy by hoodwinking the public with fake news. Not mentioning any names for legal reasons but msm is the least likely place to mine for truth.

On the other hand I give Garth credit for having one tradable idea last year that made me mega bucks . Thx btw

Example of fake news being fabricated by major MSM please? — Garth

____________________________________________

How many examples do you want? There are hundreds

http://www.zerohedge.com/news/2016-12-07/ultimate-fake-news-list

#117 Debtslavecreator on 01.03.17 at 1:28 pm

The reason most millenials are so deluded and outright dangerous is that many have been indoctrinated by our large group of radicalized liberal/left wing “professors”.
These youngsters have effectively been brainwashed by the scum Marxist/alinksy followers into thinking that governments are great and the rich evil.
Historically the left wing nutbars have used the young to help advance their Marxist agenda and these young people for the most part cannot think critically to see that the joke is in them and they are being used as tools to help a small but powerful group of elites keep and grow wealth stolen by using government as a tool to steal

Millenials: fake education and fake news means they often believe in fake things
Not all but a heathy majority are intellectual idiots

#118 Calgary Rip Off on 01.03.17 at 1:33 pm

Yes Garth,

the 20 year olds, many, are an embarassment. Im glad Im not in that age group.

Housing remains overpriced in Calgary. And now, further rip off begins with carbon tax. This is a provincial tax in disguise that will do nothing to lessen carbon. Carbon is life.

And in Alberta there is wind should the sky be dark due to coal burning.

I support coal, oil pipeline. But no nuclear fission or windmills with disposable batteries. Plutonium is not green. There is no “green”.

And NDP will be fired at next election.

#119 Deplorable Dude on 01.03.17 at 1:41 pm

‘Example of fake news being fabricated by major MSM please? — Garth’

Just yesterday…..

Washington Post : “Russian hackers” invaded US electricity grid!!! —> oh, actually, just a laptop —> oh, it wasn’t Russia…

http://www.forbes.com/sites/kalevleetaru/2017/01/01/fake-news-and-how-the-washington-post-rewrote-its-story-on-russian-hacking-of-the-power-grid/#235cb1ee291e

….of course the MSN knows that the Meme is now out there….’Muh Russians hacked the grid’……

#120 look to the right on 01.03.17 at 1:45 pm

#114 darkselling

This is not going to happen. For what you are asking you need to hire TI as a financial advisor.

#121 Context on 01.03.17 at 1:49 pm

#110 Ace Goodheart:- There are many ways to heat a home, and a geo-thermal installation for a large home can be done for about $25,000.

#122 there is no green on 01.03.17 at 2:03 pm

#118 Calgary Rip Off on 01.03.17 at 1:33 pm
I support coal, oil pipeline. But no nuclear fission or windmills with disposable batteries. Plutonium is not green. There is no “green”.

===

https://science.slashdot.org/story/17/01/03/1416222/solar-could-beat-coal-to-become-the-cheapest-power-on-earth-in-less-than-a-decade

#123 n1tro on 01.03.17 at 2:16 pm

“Example of fake news being fabricated by major MSM please? — Garth”

Newsweek reports Koran desecrated at Gitmo
http://www.nationalreview.com/article/214458/deadly-mistake-paul-marshall

CBS reporting George W Bush’s military record were faked
http://rightwingnews.com/uncategorized/rathergate-the-movie/

NBC editing George Zimmerman 911 tape to make him sound racist.
NBC edit: Zimmerman: This guy looks like he’s up to no good. He looks black.

Actual tape
Zimmerman: This guy looks like he’s up to no good. Or he’s on drugs or something. It’s raining and he’s just walking around, looking about.

Dispatcher: OK, and this guy — is he black, white or Hispanic?

Zimmerman: He looks black.

http://www.businessinsider.com/nbc-apologizes-to-george-zimmerman-for-editing-a-911-call-to-make-him-sound-really-racist-2012-4

NBC reporting exploding GM trucks while setting off explosives themselves to make the story true.
http://www.whatreallyhappened.com/RANCHO/LIE/nbc.html

Jayson Blair NYTimes writer shown to have lied and made up stories.
http://townhall.com/columnists/anncoulter/2003/05/15/the_old_gray_liar

Rolling Stone fake rape story
http://mashable.com/2016/11/04/rolling-stone-defamation-sexual-assualt-story/#TAvPjW_qdsqV

MSNBC, NY Times, Washington Post, etc… all propagating story of myth that Michael Brown was compliant and got shot just for being black
http://dailycaller.com/2016/12/06/sheriff-clarke-liberal-media-created-fake-news-with-hands-up-dont-shoot-lie/

Do you need more example???

#124 jess on 01.03.17 at 2:41 pm

youth today are taught finance literacy in schools
…they already do or at least mine did as i followed along with their course studies. Perhaps financial honesty/transparency would solve some problems.
============

How would math help here? Is it not more about policy? What is Mr. Trump going to do?

“The Office of Financial Research (OFR), a unit of the U.S. Treasury, was created under the Dodd-Frank financial reform legislation of 2010. It says its role is to: “shine a light in the dark corners of the financial system to see where risks are going, assess how much of a threat they might pose, and provide policymakers with financial analysis, information, and evaluation of policy tools to mitigate them.” Its 2016 Financial Stability Report, released on December 13:

https://www.financialresearch.gov/financial-stability-reports/files/OFR_2016_Financial-Stability-Report.pdf

U.S. Quietly Drops Bombshell: Wall Street Banks Have $2 Trillion European Exposure
http://wallstreetonparade.com/

#125 Polls R Phake on 01.03.17 at 2:53 pm

#106 Wrk.dover on 01.03.17 at 12:01 pm
#96 IHCTD9 on 01.03.17 at 9:11 am

Millennials have one thing going for them – time. Save 5K and invest it, throw 500 in per month, and keep it up for 40 years and that would be almost 800G’s by 65 at 5.0% which is totally realistic over the long term. The above should be doable even on minimum wage.

———————————————————–

When I was young and poorly paid I could save none of that, but where have you arrived now with this practice that you preach?

Beyond the $800,000 mark? You are pushing sixty right?

___________________________________________

Not to mention that houses in “dirty money Vancouver” will cost 30 million dollars in 60 years. This is the one point the geezers and suits never address. There are way more taxes and the cost of living is way way higher than it was back in the hippie days. Nope. Never a comparison on this fact.

#126 Theo on 01.03.17 at 2:59 pm

#115 Debtslavecreator on 01.03.17 at 1:28 pm

Truth be told as a millennial I received far more indoctrination from my K-12 schooling than I did in University. Then again I did a Commerce degree in finance and accounting.

I find my little ones even at their tender elementary school ages are getting the full blown treatment of “Canadian Values”.

#127 Tony on 01.03.17 at 3:19 pm

115 Debtslavecreator

You are a deluded right wing puppet. Millennials are a product of corporate right wing media propaganda. They believe the lies as if they were facts which is why they are house honey in an obvious housing bubble. Millennials are so brainwashed that they will work for free like puppets. Millennials walk around clueless to reality since they are unable to form independent thought much like other brainwashed right wing puppets.

#128 Renter's Revenge! on 01.03.17 at 3:23 pm

#91 James on 01.03.17 at 8:00 am
I’ve decided to take a year off work. After diligently stuffing my RRSP while making 130k/yr in advance to withdraw in this non-working year, I’ve now read that there is a 30% witholding tax on top of the income tax charged on RRSP withdrawals. So where exactly is the tax advantage here? I’m confused.

There is no tax on top of the withdrawal – it is a portion of the removed funds which is held by the financial institution to be applied against your tax liability. If you reduce the amount of the withdrawal, this can be lessened per withdrawal. In any case, if your income is low or non-existent during the year you are living on RRSP funds, you will recover the tax when you file your return next year. — Garth

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

That’s a clever arrangement by the government, because they get the use of your money (the withheld part) for a year before they return it, and it forces you to withdraw more money than you would if there was no withholding tax (assuming you have a specific amount of expenses to cover with the withdrawal).

You got a refund when you put it on. You pay when you take it out. Fair. — Garth

#129 Roial1 on 01.03.17 at 3:26 pm

#8 Johnny D on 01.02.17 at 6:01 pm

If there’s anything i want to see in 2017, it’s that traditional media realizes what is happening and starts to make moves to do real, relevant, investigative journalism again.
————————————————————-

This will happen——When all mass media goes advert free.

Ya, Right.

And elephants fly

#130 Adrian D'Atri-Guiran on 01.03.17 at 3:32 pm

Hey Garth, you often give advice such as “Get an ETF full of rate-reset preferreds, not perpeptuals or too much US exposure” on your blog. I was wondering if you might be able to do a post on the various ETFs available, and your thoughts about them?

Cheers,
Adrian

#131 Skip Breakfast on 01.03.17 at 3:36 pm

Traditional media where “People get paid to be accurate”?!

More like where people get paid to write propaganda.

http://www.breitbart.com/london/2017/01/02/bbcs-impartiality-questioned-following-evidence-of-eu-funding/

#132 InvestorsFriend on 01.03.17 at 4:07 pm

The World is messed up and rigged, or it is a wonderful place. It’s your choice.

Whatever view you have you can find plenty of evidence to support it.

You want evidence of rigged media and fake news, and rigged markets and general unfairness? no problem, you can find it.

You want to basically trust main stream media? No problem you can easily explain fake and biased stories as mistakes or the actions of individual journalists rather than some giant conspiracy.

You want to view being alive today and especially being young today as presenting a wonderful opportunity, you can view life that way.

You want to moan that the previous generation had it far easier, go ahead.

I don’t see how seeing the world as rigged and unfair will help you get ahead.

Is it not more logical to go about building your own best life. How does railing on about the press or the right wing or the left wing or the FED accomplish that?

#133 Johnny Boy on 01.03.17 at 4:20 pm

#119 Deplorable Dude on 01.03.17 at 1:41 pm
‘Example of fake news being fabricated by major MSM please? — Garth’
Just yesterday…..
Washington Post : “Russian hackers” invaded US electricity grid!!! —> oh, actually, just a laptop —> oh, it wasn’t Russia…
http://www.forbes.com/sites/kalevleetaru/2017/01/01/fake-news-and-how-the-washington-post-rewrote-its-story-on-russian-hacking-of-the-power-grid/#235cb1ee291e
….of course the MSN knows that the Meme is now out there….’Muh Russians hacked the grid’……
……………………………………………………………………
I don’t believe anything on the internet. If you did you would go insane. Just look what happened with the big Orange Turd about to take office. Shift happens! Everyone thought there was no way this complete asshole would ever get elected. Boom baby so believe what you may but when the mushroom clouds start only then I’ll believe.
BTW Still calling him to depose himself! He is like an alcoholic in a liquor store, he just can’t help himself.
Too bad he doesn’t drink, perhaps after a few months of real world work he will start to drink! lol

#134 mike from mtl on 01.03.17 at 4:27 pm

#97 IHCTD9 on 01.03.17 at 9:35 am
Heard about this a while back.

The tone from the CRA is concerning here, “you’re not allowed to make that much money in a TFSA…”

I really am wondering what things will be like 20 years from now if the CRA is accusing folks of being “too successful” with their trading efforts and dinging them right now in 2016/2017…
——————————————————————

Right, using non-specified terminology like what constitutes ‘business activity’ certainly opens the door for seizure and / or taxation.

What is that? Making hundreds of trades a day? two a month? mid six-figure account? Sure they’re not after RRSP due to the well defined deferred taxation.

Start going after mine and watch how fast ‘capital outflows’.

#135 Context on 01.03.17 at 4:54 pm

#127 Tony:- You got it right, as hit the nail on the head – BRAVO!

#136 Old Dog on 01.03.17 at 5:44 pm

Enough of this boomers vs millennials. There are and always will be successful and screw ups in every generation. I do believe taxes were higher in the 60’s and 70’s. We didn’t have environment and carbon taxes or all the hidden taxes we have now though. But Canadians didn’t have it easy then. There was no free trade agreement, everything was costly compared to wages. Jobs were not plentiful. We didn’t even get medicare till 68. When I attended university I worked every weekend and holiday. I sometimes cut classes to work two jobs. I didn’t live in my parents basement, I lived in a rented dump with mold on the walls, but I came out of university with no debts. My first house cost $70000 with a 19% mortgage. Payments were large at the time, but I still saved money from my meager wage. So cut the BS about how easy the boomers had it. I’ll give you the same advice I was given. Quit whining, get off your ass, get yourself educated, and start to make things happen.

#137 Eaglebay on 01.03.17 at 5:45 pm

#133 Johnny Boy on 01.03.17 at 4:20 pm

Hey smart one, tell us one thing that Trump screwed up beside getting you all worked up?

#138 Barb on 01.03.17 at 5:48 pm

#121 Context on 01.03.17 at 1:49 pm

#110 Ace Goodheart:- There are many ways to heat a home, and a geo-thermal installation for a large home can be done for about $25,000.

————————————
Yes…but:

I heard from two nearby homeowners who have geothermal that the electrical bill (to run the geothermal pump) was huge $$$$$$$.

And it runs winter and summer, 24/7.

They were both stunned at the high cost of that pump hydro.

#139 Freedom First on 01.03.17 at 5:59 pm

#54 Smoking Man

Yes. I said I was waiting for the movie. And Oscar I’m thinking after reading the 1st chapter. However, I will put it on my list of books to read asap.

Smoking Man. Lazy? Possibly. However, it is difficult to tell. As I have no wife or boss telling me what to do. Personally, I think I am a high energy guy who just lacks the ability to put myself under pressure.

I think it stems from my inability to feel shame or guilt.

#1
Freedom First
Master of Freedomonics

#140 Ace Goodheart on 01.03.17 at 6:43 pm

#121 Context:

“#110 Ace Goodheart:- There are many ways to heat a home, and a geo-thermal installation for a large home can be done for about $25,000.”

True, for the wealthy amongst us there are many ways of heating a home.

For the rest of us there are usually three:

1. Heat the home with the natural gas furnace the home probably came with. Most of these things cost around $4000 to replace, last about 15 years and an average house can be heated for the entire winter for under $1500.00

2. Heat the home with the old oil burning furnace, while you save up to switch to natural gas. These things are dirty, not very safe and need constant cleaning. The oil heat also costs slightly more than the gas, probably closer to $2000.00 per winter to heat your average house.

3. Heat your home with the old electric baseboards. This will cost around $2000 per month if you live in Ontario. Heating costs for a year would be about $12,000.00. Most people don’t do this (unless they rent the house and don’t have a choice). I have seen many people tear down their ceilings and walls to install duct systems for a gas furnace, because it is cheaper than heating a house with electric baseboards.

That is how the middle class heat their houses in Ontario, in descending order of desirability.

Yes the wealthy go out and spend $25,000 on geothermal. Then yes they find out that the pump that runs the whole thing is electric, runs 12 months of the year and costs a lot to operate. But they’re wealthy so they don’t care.

There is currently no other affordable option for your average middle class family. Most middle class families take out a “furnace loan” for the inevitable $4000.00 furnace replacement. They cannot afford anything more.

#141 Alice on 01.03.17 at 6:49 pm

Good luck getting young people to contribute to their TFSA. They’ll need newspapers to convince them they’re missing out before they even try.

#142 Ronaldo on 01.03.17 at 7:13 pm

#89 Dharma Bum on 01.03.17 at 6:49 am

Your sitting on $4 million in equity and you come to a pathetic blog of deplorables for free advice. Why don’t you just contact Garth and have him advise you?

#143 Ronaldo on 01.03.17 at 7:26 pm

#114 darkselling on 01.03.17 at 1:08 pm

Sounds like you need to give Garth a call.

#144 Tudval on 01.03.17 at 7:38 pm

“commercial activities such as day trading” Say wha?? Is week-trading, month-trading and year-trading inherently less “commercial”? This arbitrary support for regulation that prohibits somebody else’s investment model in order to favor your own smacks of self-serving socialism. But I knew better than to look for a principled approach to regulation on this blog.

You don’t want to pay tax? Then follow the rules. — Garth

#145 Michael on 01.03.17 at 8:26 pm

Just noticed something minor: the maximum contribution limit is available for people aged 18 on January 1, 2009.

You had me worried for a second, since I wasn’t 18 until sometime in 2008.

#146 Upenuff on 01.04.17 at 1:45 am

#136 Old Dog on 01.03.17 at 5:44 pm
Enough of this boomers vs millennials. There are and always will be successful and screw ups in every generation. I do believe taxes were higher in the 60’s and 70’s. We didn’t have environment and carbon taxes or all the hidden taxes we have now though. But Canadians didn’t have it easy then. There was no free trade agreement, everything was costly compared to wages. Jobs were not plentiful. We didn’t even get medicare till 68. When I attended university I worked every weekend and holiday. I sometimes cut classes to work two jobs. I didn’t live in my parents basement, I lived in a rented dump with mold on the walls, but I came out of university with no debts. My first house cost $70000 with a 19% mortgage. Payments were large at the time, but I still saved money from my meager wage. So cut the BS about how easy the boomers had it. I’ll give you the same advice I was given. Quit whining, get off your ass, get yourself educated, and start to make things happen.

Old Dog, very nicely stated!!