The failure

It was fun watching my colleague and fancypants portfolio manager Ryan Lewenza fighting with the trolls, basement people, DIYers and advisor-haters in the blog’s deplorable steerage section over the weekend.

Poor Ryan. Leaving the comfort of his mid-town mansion, trophy wife and Porsche to come here and argue the case for paying a dude like him fees to manage your money. Pffft. I should have told him everyone here’s a genius, alpha-adding macroeconomist who’s learned that 15 minutes’ worth of Googling beats his two decades of securities industry experience and string of designations hands-down. Silly boy. What was he thinking?

Ryan’s butt was still giving off a little smoke when he came into the office Monday morning. We talked about his tragic mistake. Simple. He made a financial, mathematical, logical argument for why people should have an advisor to make them money in a predictable, consistent fashion. But, sadly, humans (unlike portfolio managers) don’t think like that. Most equate investing with gambling, which means rolling the dice and occasionally hitting a home run. Batting singles and doubles every day (the goal of advisors) just isn’t sexy enough.

My colleague also neglected to make enough of the real reason folks would be better off with a financial coach, mentor, manager-type person. The bulk of us are emotionally ill-equipped to look after our own money. That’s why we screw up. Most buy things that are going up, then never sell to take a profit. We run away from what’s fallen in price and is a bargain. We believe rising assets will go up forever, and think declining assets will probably go to zero.

People are massively influenced by influencers. Moms. Peers. The girls at work. Sports celebs. Kevin O’Leary. Mike Holmes. The pumpers on BNN. The Trivago guy. Your BIL. The couch potato spuds. The list is endless, because it’s easier to read a text or a tweet than to research securities, learn the tax code, set a budget or write a financial plan leading to retirement and estate strategies.

I was reminded of that last week when one of the banks posted survey results confirming we’re a nation of money morons. CIBC found that most people have financial stresses, but almost half (48%) say they have no intention of cutting back frivolous spending in order to face debt, pay bills or invest. A third of people incurring new debt in the past year admitted it was not because they bought something, but overspent and needed to borrow to pay bills. Yikes.

Three-quarters of people have no intention of setting up a household budget, and for most of us saving for a vacation ranks equally to putting money aside for the future. This, mind you, is even before T2 legalizes weed. Just imagine when millions have to find money for that.

Of course I’ve reminded you often that 80% of TFSA money is in comatose, interest-bearing investments, that surveys show 50% of us could not survive one missed paycheque, that household debt’s at historic levels, RRSP contributions have plunged since 2008, mortgage debt is rising at six times the rate of income gains, only 7% max their tax-free accounts and collectively our personal borrowings (at $2 trillion) are bigger than the nation’s economy.

This is why people need advisors. Not just to grow the money they have left, but to restructure lives and step back from the brink. As this blog has tried to show in its pathetic, twisted, canine-addled way, the money choices most of us make are 90% emotion and 10% guess. We’re in constant danger of blowing ourselves up. Take Lorna and her partner Jason, for example…

“My husband and I just moved to Vancouver from Calgary where he was laid off one year ago.  He was making an engineer’s salary there, and now in Vancouver he’s a blue collar worker but with the City permanently so it’s stable.  I’m not working for various reasons.

“We’re currently renting in Vancouver.  We have two homes in Calgary.  One is a 275k rental townhouse property that is making a $200 profit per month, and plan to keep that for this reason.  It has 50k of equity.  The other was our large 750k home in Calgary which we were lucky to rent at all, for an $800-per-month loss.  We would like to sell this spring, and release as much of our 140k down as possible in order to get into the Vancouver market.  We got that house in the Spring of 2014 so there’s not a huge equity in it aside from our down.

“As we hope to have 2 kids, we thought of a 3 bedroom townhouse.  What do you think?  We appreciate you.”

You won’t appreciate me after this response. You’re nuts. Not only did you make big, dumb mistakes back in Calgary, but you seem ready to repeat them (even more monumentally) in Vancouver. The rental townhouse is surely making you absolutely nothing after property taxes and the lost use of your down payment, while the large house is a financial sinkhole, dishing up a sustained monthly loss while it quietly depreciates in a disastrous market. Of course you need to sell. Immediately, because things will only get worse.

And if all that happens successfully, you’ll end up with less than $200,000, renting in the midst of Canada’s most delusional and expensive city, on one blue collar salary. And now you want to buy again? And have two kids? Stunning.

This is financial illiteracy at work. It’s why housing’s turned into a debilitating anchor for so many people, hugely influenced by the media, friends and their equally disoriented relatives. These folks are being reamed by real estate, yet line up for more. They need help. Most of us do.

Advisors who get people on their feet, help them stay that way and grow some wealth are not the enemy. Even Ryan, who’s now home convalescing. On silk sheets. Pray for him.

197 comments ↓

#1 South Etobicoke Trump Campaign Field HQ on 01.09.17 at 6:32 pm

http://www.cnbc.com/2017/01/09/alibaba-to-discuss-expansion-plans-with-trump-company-aims-to-create-1-million-us-jobs-over-the-next-5-years.html

My brothers, we shall be so victorous perchance ye may groweth weary with victory

And mightest ye cry out: ‘Please, Mr President, we beseech thee!

Our people are overwhelmed with victory.

We grow weary, Mr. President, for the burden of victory grows heavy!’

And I shall declare, ‘Nay, mine brethren!’ We must be victorious!

We shall bask in the glory of victory!

Our people must be more victorious!

We shall indeed bring more victory to our nation!

II Deplorables 6:11-19

#2 crowdedelevatorfartz on 01.09.17 at 6:36 pm

Money and morons….soon to be seperated.

Financial literacy needs to be taught…in school, at a very early age.
But NOOOOOOO, we have a plethora of BA’s or Psychology majors, flipping hamburgers and borrowing at “0 down no payments til 2018….” to buy a new bed………and they learned all this from their Gen X or Boomer parents……

#3 Post on 01.09.17 at 6:41 pm

Another victim of the downturn in the Alberta economy and a possible read of its future:

http://www.cbc.ca/news/canada/calgary/whole-foods-alberta-stores-cancelled-calgary-edmonton-1.3927829

#4 ShawnG in TO on 01.09.17 at 6:42 pm

im only influenced by captn obvious of hotels.com

i invest frivolously

#5 Ron B on 01.09.17 at 6:44 pm

Garth, I love your frankness. Thank you.

#6 Almontage on 01.09.17 at 6:45 pm

One of the best reasons for putting all your financial assets with someone like Garth/Doug/Ryan is that they can structure your accounts to get the best tax relief situation. You might be able to do this yourself but I’m sure you’d miss something in the process.
Add in the really great service you get from their staff when it comes to financial planning and we think it’s worth it.
Plus we never get the feeling they are putting themselves first in any investment advice we get.

#7 rainclouds on 01.09.17 at 6:45 pm

I am an Idiot therefore its best to let someone else look after my financial well being. Precisely for the reasons highlighted .

Regarding the Lorna and her hubby. What’s that saying ? Doing the same thing over and over and expecting a different result is………………. insanity.

PS dont count on that permanent job. Once Comrade Gregor and his lackeys are vaporized next election gonna be a staffing reset to reduce the socialist bloat. And yes, he is sooo gone……..

#8 I'm stupid on 01.09.17 at 6:46 pm

The key to financial success is discipline. Figure out what you need when and work backwards to now. Live a lifestyle that meets your end goal. It’s easy, sacrifice today for tomorrow’s freedom. I know you only live once, but lets face it 90% of the things people buy don’t increase happiness.

#9 Finances 101 on 01.09.17 at 6:47 pm

The people who need Financial Advisors the most will never spend a dime on their services. They have little money to invest because they spend it all each paycheck, and they don’t want to change. Who wants to listen to someone tell them to budget, save, and invest? When buying a sexy BMW and a big house is a lot more fun.

So, at best, they will go to a FA at a big 5 branch and get some questionable advice to get products that will make the bank money. Get a fat mortgage, borrow to invest, and get a big line of credit that you can buy all your toys on.

Obviously, when we give Canadians access to easy credit, bad things happen.

There is a wealth of free, online information, including your blog, that allows the average Canadian to get a strong financial education, but people would rather read their Facebook timeline than to turn the pages of taxtips.ca

Things couldn’t be any easier either. Before the 2000s, investing in stocks, bonds, etc. was hard, now, I can invest any amount from a keyboard.

People are misguided, but they are not willing to spend a dollar for advice.

#10 Gulf Breeze on 01.09.17 at 6:47 pm

Well. That was insulting to…well…everybody. Tell me, Garth, outside of financial advisors and Bandit is there anybody you like??

#11 numbers game on 01.09.17 at 6:48 pm

sexy figures

i am the one percent
zero debt
and one of the 7% with a very healthy TFSA

always be contrarian

oh and i love my wife .

life is good .

#12 Smartalox on 01.09.17 at 6:52 pm

Um, it looks like you’re missing a stat in the 6th paragraph:

I was reminded of that last week when one of the banks posted survey results confirming we’re a nation or money morons. CIBC found that (??%) have financial stresses, but almost half (48%) say they have no intention of cutting back frivolous spending in order to face debt, pay bills or invest.

#13 Post on 01.09.17 at 6:53 pm

… Most of the Whole foods are in BC. Vancouver is the only place in Canada (Toronto’s getting close) where people will pay $3,000,000 for a tear down bugalow or $3 for an avacado.

#14 Victoria Real Estate Update on 01.09.17 at 6:59 pm

A TELLING DECEMBER: OAK BAY POSTS LOWEST DETACHED HOME SALES TOTAL SINCE 2011

That says a lot, considering how weak sales of detached homes were in 2011 across Greater Victoria (third lowest total since 1984, in fact).

What’s worse is that December sales in Oak Bay were lower than in 2012 and 2013, when Greater Victoria posted its lowest and second lowest detached home sales totals since 1984.

And that’s without population adjustment.

Oak Bay’s trend of declining sales began some time around April when sales across Greater Victoria began to fall. This was also around the time that sales began to decline in Vancouver.

A REAL ESTATE BASIC

Sales fall, then prices fall.

ANOTHER BASIC

House prices fall as rates rise.

SOON TO BEGIN IN CANADA: RISING MORTGAGE RATES

Canadian 5-year fixed mortgage rates will follow American rates higher, regardless of what Canada does with its key rate.

FALSE INFORMATION

The local media is always willing to publish the opinion of realtors. In 2015, they published the opinion of a certain realtor, who claimed that wealthy buyers from Asian had “suddenly discovered Victoria” and that they were “moving the market”.

The actual stats, which were not published, showed that only 0.68% of all real estate deals across Greater Victoria went to buyers from Asia.

Realtors claimed that Oak Bay and Victoria were two of the target areas for these buyers.

It was supposed to be a permanent change, a new normal for the region. Realtors and the media led locals to believe that if they didn’t buy now, they’d miss out.

FALLING SALES PROVE THAT NO NEW NORMAL WAS ESTABLISHED IN GREATER VICTORIA

Higher sales numbers were supposed to be a part of the new normal for Victoria. If you’re from here, you would have heard about the warnings issued by the media and realtors: that buyers from Asian had launched a permanent invasion that would create unimaginable levels of demand.

Obviously that warning was nothing more than a selfish attack on the emotions of locals to create the fear of missing out.

Sales have fallen. There has been no permanent invasion of buyers from Asia. No unimaginable levels of demand.

As the numbers above show, demand has fallen dramatically.

BUBBLES DON’T END HAPPY

Bubbles are nasty.

Lies and misleading information are part of the inflation cycle. Denial, anger and excuses are part of the deflation cycle along with strained household finances, bankruptcies, etc.

For those who’ve waited to buy, the fun part of the bubble experience – falling prices – awaits Victoria. As Garth says, it will happen soon.

#15 Digby Ditherman on 01.09.17 at 6:59 pm

Harsh, harsh, harsh there Garthman.

Perhaps you have been doing this public education blog for too long, having to suffer us lesser mortals for our conspicuous and rather permanent financial stupidity?

You remind me of a “helpful” paramedic that was pulling me out of a wreck recently … grunting and I suspect subtly cursing me, as I was being heroically dragged out of said wreck by said saviour.

Having unintentionally crushed my somatic tenders, (despite my best intentions) into a discomforting array of pretzels contortions while seeking aid, it was not the kind of encouragement I was seeking at the time.

Kinda like said Calgary multiple home-owner probably also feels after writing you. The last thing I seek from someone who is proffering “help” is receive a dram of snark.

Thus. a gentle point of order. If your gonna teach someone how to repair their obviously self inflicted past/ present/future damage …. why berate them? This snark sauce seems a pretty regular feature in these mini tomes.

But then after all, it is your blog, thus your hood and your rules. But to a newbie it seems just a a little off-putting.

You do have a lot of really reliable financial and strategic advice. It is consistent, and well reasoned, and at the price offered well worth wading past these small irritants

In any event a little love and hugs would go a long way to keep some readers less fearful of being made the fool when they already feel pretty foolish finically for being in their dire predicaments.

Yes, yes I know were all idiots and financial dufus’ …. but hey, we really do need the help.

#16 Millennial investor on 01.09.17 at 7:01 pm

Hi Garth,
I read your blog religiously and typically agree with everything you write. Not in this instance though. Pretty much everything I’ve read about investing advocates just buying index funds. As much as I’d love to help contribute to the upkeep of Ryan’s mansion and trophy wife, it doesn’t seem financially prudent. Btw, as a female, I’d respect you a whole lot more if you didn’t use such sexist language.

Name it. — Garth

#17 Joe Schmoe on 01.09.17 at 7:05 pm

I thought Ryan would get hit harder than he did!

No one wants to believe that your schmarmy investment earn your keep.

I was sort of sad there wasn’t more name calling. I expect this from your blogdogs.

I am taking up home dentistry to save money on the kids dental bills…it’s mostly just scraping…how hard can it be?

My wife is a OB/Gyn and repeatedly is ignored by couch potatoes and google. Some of the results would literally put people in tears.

I don’t understand how people can equate a 15 min google search on the toilet with tangible education/experience.

But it’s the world we live in.

#18 RentYVR on 01.09.17 at 7:05 pm

Problem is Garth, most Canadians are convinced that real estate is the only true way to build long-term sustainable wealth. They’ve seen their parents and grandparents do it and just seen double digit annual gains in our biggest cities. To them, it’s irresponsible of us renters not to be buying as we will never build wealth. Crazy I know, but that’s what 30+years of lowering rates and gov’t incentives to own real estate will do. And even if the markets correct it’s going to take a long long time for that mentality to change.

#19 Debt's Dark Embrace on 01.09.17 at 7:05 pm

Most of the general public has no faith in you or people of your ilk. Yes ilk. No one one saw the dot com bust coming, no one saw the GFC coming,no one saw the oil crash coming. Blah blah blah. Better to take their chances on bricks and mortar, at least they can blow their own brains out instead of you and your ilk doing it for them.

If I disgust you, leave. Problem solved. — Garth

#20 TurnerNation on 01.09.17 at 7:07 pm

We can blame Boomers, only for telling their kids da house she always go upppa: the only way to build equity.

#21 Freedom First on 01.09.17 at 7:11 pm

Yes. All wise people have well chosen advisers/mentors. I call mine my “go to guys”. They can even be Blog writers. And Ryan’s Post was excellent of which I have already responded to.

Problem is, most people don’t want anyone’s advice, they just want their money, agreement, or whatever else it is they are after. Hence the banks, Mom, and all the other enablers of their various acts of insanity/self sabotage.

Heaven forbid they ever pay anyone to give them the actual truth/wisdom to save them from a lifetime of paying for and regretting the consequences of their hormones/actions.

#1
Freedom First
Master of Freedomonics

#22 Steve on 01.09.17 at 7:15 pm

For those who bought recently – Don’t happy, be worry

#23 Metaxa on 01.09.17 at 7:20 pm

At least all the genius, alpha-adding macroeconomist who’s learned that 15 minutes’ worth of Googling beats (Ryan’s) two decades of securities industry experience and string of designations hands-down. types are self identifying.

Gives a guy like me a good heads up as to which posts to read and retain and which ones to read and move on.

I liken it to buying a broom. Sure, the hardware store $11 corn broom will do the job but the $35 one from Janitor Supply will do a better job more quickly and out last the cheap one by a factor of at least 5.

I used to pay folks to use those brooms, you better be on your toes when margins were measured in single digits.

#24 Frank on 01.09.17 at 7:20 pm

So VREU, what you mean after all that is that Oak Bay prices are the slightly up. I’ve been coming here 2 years now and waiting for you to predict one thing correctly.

#25 steerage steward on 01.09.17 at 7:21 pm

Even assuming one has the right plan/investments the emotional control a financial advisor brings is still very valuable. Paying 1% for that reason alone would be money well spent for most people.

How many stuck to their plan over the last 10 years? Even when stocks were down 40%?

#26 S.Bby on 01.09.17 at 7:22 pm

Where any investing breaks down is when someone panics and sells out on emotion (fear). This can even happen when using an investment advisor. Hence the “cushion” of the balanced portfolio for the average Joe or Jane that cannot stomach volatility. Personally, I’m comfortable doing my own investing after taking advice from here and other sources and I look at the downs as opportunities rather than detriments.

#27 RE wealth #18 on 01.09.17 at 7:23 pm

No doubt that wealth can be created from RE. But the timing and the location are important. Buying into a deflating bubble is probably financial suicide. Hard to get out from under.

The big developers have made their money and they’re now looking for more idiots who will take their crap at inflated levels. The big money was made when the lands were assembled and the subdivisions were pumped out of the ground in weeks and months.

Banks financed the deals and of course financed the products to the purchaser. Credit was easy, debt was good.

Not anymore. The ship has sailed.

Prices need to come down considerably before buying into RE makes sense again. That’s how wealth is created in RE long term.

#28 Metaxa on 01.09.17 at 7:27 pm

Well. That was insulting to…well…everybody. Tell me, Garth, outside of financial advisors and Bandit is there anybody you like??

He likes me!

I know this for a fact.

#29 John on 01.09.17 at 7:30 pm

RE Victoria Real Estate Update:
The shortage of inventory almost guarantees prices will not fall substantially.

#30 Doug t on 01.09.17 at 7:34 pm

Most people equate “financial advisors” with lawyers, car salesman and realtors – everyone needs to make a living – if you are honest and have some morals it helps.

#31 LovethisBlog on 01.09.17 at 7:35 pm

Great article as always Garth. Skip over the
realtors in disguise and the snowflakes
Whose feeling have been “damaged” . Truth is – the truth hurts.

Those of us who have a normal skin have our
Ears open and are listening.

Thanks again

#32 Linda on 01.09.17 at 7:35 pm

How do people manage to ‘over spend’ without buying anything? Then compound the stress by borrowing to pay for the ‘over spend’? Also, how do they manage to borrow if they are already indebted (over spent)? Either they have some asset they can pledge that the lender thinks will cover the loan or they are possibly going into hock at – heaven help them – the payday loan outlet.

As for Lorna/Jason, if Jason’s strategy is to get his foot in the door & then apply for an engineering position when one comes along good for him. As for Lorna, if she is capable of working she should get into the game, pronto. Plus shed the houses, though if they’ve been rented out selling might be complicated by whatever rental agreement they have. Yes, it sucks to give up the property but – if they are subsidizing the renters then duh, why are you working to pay for someone else to live in your property? Unless the renters are family who would otherwise be homeless & you are helping them out, which doesn’t sound like the situation here. As for children, yes they are great but they are also very expensive so digging out of the financial hole prior to the blessed event(s) would be a priority – unless you want to be the martyred parental who ‘gave up everything’ for the child.

#33 Nonplused on 01.09.17 at 7:35 pm

My problem with financial advisers is that their fees are just too high, even at 1%. So at 1%, and a hypothetical $1,000,000 portfolio, that’s $10,000 a year. That’s over twice what my lawyer charged me to handle my whole divorce! And that only happened once! (So far)

Financial advisers should have more economy of scale than lawyers do as well, because ok every portfolio needs customization based on the age/wealth/needs of the client but there are probably only 20 required portfolios even counting the gold bugs.

Everybody can use the help of a financial adviser, no question there. But they should get (something like) $350 an hour like a lawyer, not 1-2%. The market will eventually correct this obvious discrepancy.

To make my point, again hypothetical portfolios, a dude with a $10,000,000 portfolio will pay $100,000 a year in fees to his FA, whereas the guy with a $1,000,000 portfolio pays only $10,000. Yet I bet both portfolios are pretty similar and take about the same amount of time to manage. The FA just has to add one more 0 when he puts in the buy and sell orders for the first client.

An FA with 3 clients at $10,000,000 each would be pulling in $300,000 a year at 1%. He probably only needs 3 clients and how much time is he actually working?

The “invisible hand” of the market controls these things of course and what people get paid to do when they aren’t on strike. Successful athletes get paid disproportionately more than regular athletes because they can draw a crowd and that matters. But I don’t know that FA’s should be hosing in so much more money than lawyers. Anyway if the market is allowing it, it must be fair for now.

Garth will probably rip me a new one if he even allows this up.

What do you do for a living? — Garth

#34 NoName on 01.09.17 at 7:35 pm

…Ryan, who’s now home convalescing.

—-

RL, stop buy elcibio and pick some Trappistes Rochefort 8, instant recovery.

#35 Money Miser on 01.09.17 at 7:35 pm

#15 Digby Ditherman

Ah, but highlighting the glaringly obvious mistakes of others helps those who are yet to make those mistakes already.

“Learn from the mistakes of others, you can’t live long enough to make them all yourself” – Eleonor Roosevelt

As a young person who could have made all of these financial mistakes and hasn’t because of Garth’s brutal honesty, I’m certainly thankful for it.

“In any event a little love and hugs would go a long way to keep some readers less fearful”

Pahahaha. Keep on walking if you think Garth is going to be offering anything close to love and hugs.

#36 ANON on 01.09.17 at 7:39 pm

Of course you need to sell. Immediately, because things will only get worse.

You can’t save people from themselves, Garth. No one ever could, those who saw the bubble, saw it simply because they were different (not better. nor worse). You’re having a typical case on your hands, here, and there’s no cure for it (at least I could not find it, and I’ve tried it with people who lived the boom, and the bust, and the boom again). It just doesn’t work…

#37 Long-Timer Lurker on 01.09.17 at 7:44 pm

Hi, Garth.

I appreciate the work you do and this blog that you write. You’re a good-hearted guy and help a lot of people. I also get a good laugh from you, time to time. You’re definitely sharper on the Canadian scene than I am. Thanks, Garth.

Solve any riddles?

#38 I don't know on 01.09.17 at 7:46 pm

“CIBC found that most people have financial stresses, but almost half (48%) say they have no intention of cutting back frivolous spending in order to face debt, pay bills or invest.” – Garth

———————————————

It makes perfect sense in an environment where debt is almost free. This is not about to change.

#39 Dick C on 01.09.17 at 7:49 pm

Fellas – Keep in mind that investment fees are negotiable. Whether it’s because you already have a large portfolio, the potential of being a long term client, or are a nice guy and not a high-maintenance jerk, many advisors will lower commissions to earn your business. I pay .5% for a very solid advisor who has performed well in good markets and bad.

#40 Hobi on 01.09.17 at 7:50 pm

As you’ve told us we “may” be able to achieve a 6% return these days, with a balanced & diversified portfolio, best provided by a fee based advisor. So, our best chance of achieving this is with a porfolio manager who’s so well compensated that he can afford a collection of Porches, a Toronto mansion and keep his “trophy “wife” living the lifestyle she rightfully deserves?

#41 The Greater Cauliflower on 01.09.17 at 7:50 pm

Where Are the Customers’ Yachts?

#42 Figmund Sreud on 01.09.17 at 7:52 pm

This is financial illiteracy at work.
__________________________________

So it seems. Look, … any intelligent person knows that life is a beautiful journey, … and that the purpose of life is to be happy! Fair assertion, …

Now, above said: … it seems that only idiots are ever happy. Look around, …

F.S. – Comox, BC.

#43 Vanrentor on 01.09.17 at 7:56 pm

Another perspective… My parent’s investment advisor let them use his Palm Springs house for a week. He wasn’t allowed to drive the Ferrari or Cadillac in the garage though. My parents ran out of their investment money and I had to help them out.

#44 green one on 01.09.17 at 7:57 pm

“…the comfort of his mid-town mansion, trophy wife and Porsche to come here and argue the case for paying a dude like him fees to manage your money”
……………..
Wow, your most arrogant post yet.

I may have misjudged the comprehension of this audience. — Garth

#45 InvestorsFriend on 01.09.17 at 8:00 pm

So the Blog is controversial and offends some?

Controversy is a HUGE part of the reason people read this blog.

Check out most of the articles that finance people write in the Globe and Mail and elsewhere. People can comment but few do. Waste of an article.

Disagreement calls people to action to argue. If you read a bland piece that you agree with you are unlikely to comment.

By the way, Edmonton is, by far, the best place to live in Canada.

#46 Context on 01.09.17 at 8:03 pm

#16 Millennial investor: Anytime you as a female want to witness the art of language go into a chat room to watch a cat fight some night between women your age. You would be shocked beyond the pale what they are saying to each other in comparison to whatever is said here. Methinks you protest too much!

#47 crowdedelevatorfartz on 01.09.17 at 8:05 pm

@#15 Digby Lobsterman

Unfortunately, my personal experience with financial morons is they will argue until they are blue in the face with prudent fiscal reality……..” You just dont understand, I NEEED IT!” …..as if the new car they just financed for anothe 5 years of $500/month payments is a good reason to flog their almost paid up current commuter vehicle.
No.
Garth uses acid tongued humour because calm, rational discussion doesnt work with financial IDIOTS.
Its a shame because most people are intelligent, reasonable, kind people but…….when money is involved……..throw all that under the bus.

Stubborn, obstinate, juvenile wants and desires…..take your pick when talking to someone who is staring bankruptcy in the face and still refuses to listen.
I’ve seen it all. Friends , relatives, coworkers….
Its really no surprise 1% of the population does so well with their money.
The other 99% are morons with a overdrawn debit balance.
Sympathy?
Nah.
I’m tired of the same stubborn excuses from the same stubborn people year after year after year…..

Rip em a new one I say and let the “snark” out of its cage.

#48 Johnny on 01.09.17 at 8:10 pm

Poor Ryan. Leaving the comfort of his mid-town mansion, trophy wife and Porsche to come here and argue the case for paying a dude like him fees to manage your money. Pffft

Did Ryan buy all this by investing his own money and waiting them to grow or by investing someone’s else money and taking a fee on managing their portfolios?

Neither. Through hyperbole and literary device. — Garth

#49 Anthony Francell on 01.09.17 at 8:10 pm

Since you have to deal with so many negative comments, I appreciate all the great information from both Ryan and Garth.

Hitting constant singles and doubles is the way to go.

#50 Al on 01.09.17 at 8:11 pm

It took a “foreign buyers tax” to bring Vancouver Real Estate to its senses, and we need the same here in Toronto like yesterday.

#51 ccc on 01.09.17 at 8:13 pm

I personally think Ryan did pretty well yesterday. Super professional from start to end answering to everybody.
Indeed, here in beaverland (the most apologetic place on Earth) Canadians have gone nuts and delusional about housing, portfolio managers take their woofing online to explain their fees and contrarian Messiahs that preach financial literacy blog in shock when nothing but a crown of thorns and crucifixion is delivered to them for their efforts. Its a strange world out there…

#52 crowdedelevatorfartz on 01.09.17 at 8:13 pm

@#16 Millenial Investor
“as a female, I’d respect you a whole lot more if you didn’t use such sexist language.”
******************************************

Ok ok . Garth tosses out “thirsty underwear” and “hot trophy wife” and the pc crowd go bonkers.

So just curious.
When you and your “posse” of gals go out on the town you all stay in PC mode?
Gimme a break.
I’ve sat next to tables full of girls out on stag-ettes that would make a Drill Sargeant blush with the anatomically correct descriptions of “the waiter” or “the cute guy over there’.
Politically Correct ? ….No
Funny?…..Hell yeah.

If you cant handle a bit of blue humour you must lead a very boring pc life…..OR you could always …….go to another totally boring , totally pc , financial blog………..?
I think the Mormons have one……

#53 crowdedelevatorfartz on 01.09.17 at 8:28 pm

@#43 green one

Let me guess.
You’re “green” with subconcious envy?

#54 Oakville Owner on 01.09.17 at 8:31 pm

Garth,

Please tell Ryan to ditch the silk sheets and pick up a new set of bamboo sheets from SleepCountry to convalesce on. Way more comfortable!

#55 Basic Income on 01.09.17 at 8:32 pm

This will be the new mortgage helper and keep prices levitated.

A new pilot project from Ontario Premier Kathleen Wynne could guarantee working-age Ontario adults annual incomes of $22,000 by April 2017. The program, known as basic income, could come without work, education or health eligibility requirements.

http://news.nationalpost.com/news/canada/ontario-report-touting-basic-income-likely-to-target-middle-aged-women-disabled-adults-for-most-help

#56 Ben on 01.09.17 at 8:37 pm

Garth, I like your blog. A lot. But how do you go from having a special blog on Boomer, for whom you went out of your way to look for and dedicated an entire blog for to then pretty much disrespect almost everyone that exist tonight. Including that poor lady, who I am sure, life hasn’t been easy at all the last year.

Just my two cents. Hopefully positive critism. I’ll still be a reader.

#57 Kenny on 01.09.17 at 8:37 pm

Any advice for someone lucky enough to have maxed Rrsps Maxed TFSA and two reliable pension streams?

I have too much cash sitting around and would like to invest in term life insurance to grow an investment tax free. I’m a natural saver and luckily have my woman trained to think this way too.

Of course I don’t own real estate currently. I rent for 1875 total, combined with my fiancée in downtown van nicely subsidized by my landlord.

I am forty and healthy, and make about 145k a year.

The woman makes about 80k.

Thinking about knocking her up soon.

I have a few hundred k scattered in other open investments too.

I like the tax free growth in a term life insurance plan…. good idea?

I know my problems are good to have.

Term life has no tax-free growth. And we’re telling your wife how you refer to her. — Garth

#58 Kenny on 01.09.17 at 8:38 pm

Non smoker of course as well.

#59 Poor Ryan Influenza on 01.09.17 at 8:38 pm

Why everyone so mean to him?

#60 Pharmboi on 01.09.17 at 8:39 pm

Your average person tends not to be very logical in actions. Here are some examples I see on a daily basis from work.

1) Peer has GERD and is taking a stomach-acid reducer.
2) Same person also drinks a carbonated beverage daily (700mL size), and purchases it from a vending machine ($3.00)
3) Does not eat leftovers because it’s not fresh
4) Buys at least 1 meal a day (conservatively $10) – which is likely NOT fresh
5) Complains about being overweight
6) Complains about not having money to buy all the nice things others have

Many people tend not to be very logical, and don’t want to draw lines to see how everything is connected. They ask me how I do it, as if there’s a secret, but all it takes a bit of hard work and being self-aware.

#61 Deplorable Dude on 01.09.17 at 8:42 pm

Most people do have financial advisors…they are called tnl@tb…..

Folks literally don’t know any better…

Currently trying to convince my FIL to switch his modest savings out of brain dead GiCs into a self directed account with some nice income producing ETF’s

..it’s me vs tnl@tb….

#62 green one on 01.09.17 at 8:52 pm

#53 crowdedelevatorfartz

@#43 green one

Let me guess.
You’re “green” with subconcious envy?
———————–
…and what can we take away from your internet handle?

#63 brett on 01.09.17 at 8:52 pm

It has been four plus years now since we turned over our investment portfolio to a fee for service adviser. Previously had a combination of me (by the time I get the data it is too late to make a profit or prevent a loss), a person who was masquerading as a bank investment advisor, and a stock broker whose goal it was to churn our account like butter.

I am happy to pay the one percent. It is less than I was paying the other free boobs AND now I can easily compare cost and benefits.

Benefits have been very good over 4.5 years. We only care about the bottom line, net of fees.

It is a change to get what we pay for in the retail financial account management environment. Makes it easier to sleep at night.

#64 joblo on 01.09.17 at 9:03 pm

Hmmmm…. wonder if Ryan ever bought Worldcom, Enron, Global Crossing or the fantastic Bre X?

We do not buy individual securities for folks. You just demonstrated why. — Garth

#65 For those about to flop... on 01.09.17 at 9:04 pm

Smartie, they are going to raise the threshold to 1.6 million for the property tax deferral in Vancouver…

M42BC

#66 Bond Junkie on 01.09.17 at 9:13 pm

I miss drugs too… When I was in university I could literally reverse engineer every topic of conversation going on in the bar simultaneously simply by observing the participants’ body language. Mushrooms are never the same once you outgrow the carefree zone. It’s a shame really…

– Bj

#67 Tony on 01.09.17 at 9:20 pm

If it was me I’d immediately walk away from the house in Calgary and hand the keys to the bank. On the low side the $750,000 house would be now worth $600,000 so walking away would instantly put $100,000 ($150,000 loss plus $50,000 equity = a $100,000 loss) into the pocket of the person or persons handing the keys over to the bank. Note I don’t know the tax laws for someone that bought and lived in Calgary and then resided in another province. It’s possible the owner would become on the hook for the entire loss instead of being able to simply walk.

#68 Wrk.dover on 01.09.17 at 9:24 pm

Post # 32 addresses many of my concerns about shying away from a financial adviser…its half about the billing.

Double the bill for the guy with double the money, for the same formula to meet the exact same needs, and twenty different off the shelf plans to fit most, repeat most, clients needs does not over simplify my thoughts, but simply expresses them quite well.

One hundred, million dollar portfolios bills a million a year, while one hundred, one hundred thousand dollar portfolios only generates one hundred thousand a year.

The whole country is about to go to hell in a hand basket due to unpayable debt both private and public, but stock portfolios always go up because they always do talk is the other deal breaker. Sounds too much like the real estate mantra. That is my other concern.

What do I do for a living? Nothing. But when I did do something, people were not very cavalier with my chump change billing when I presented it to them after meeting my agreed obligations to their satisfaction. Hence my motto, ” you can’t make money making money. “

#69 Tony on 01.09.17 at 9:30 pm

Re: #59 Poor Ryan Influenza on 01.09.17 at 8:38 pm

Completely clueless, the vacancy rate in Calgary is pushing the forty percent figure. Last figure the city of Calgary quoted was 37 percent for rentals that haven’t rented but are up for rent. The rig count in America is increasing and the likelihood of all the Opec members cheating is at least one hundred times higher than decades ago when the world economy was in much, much better shape.

#70 Porsche, 6% on 01.09.17 at 9:31 pm

Poor Ryan. Leaving the comfort of his mid-town mansion, trophy wife and Porsche…

He made a financial, mathematical, logical argument for why people should have an advisor to make them money in a predictable, consistent fashion. But, sadly, humans (unlike portfolio managers) don’t think like that. Most equate investing with gambling, which means rolling the dice and occasionally hitting a home run. Batting singles and doubles every day (the goal of advisors) just isn’t sexy enough.

====

Garth, how much start up capital “poor Ryan” needed in order to arrive at his age to the comfort of his “mid-town mansion, trophy wife and Porsche” if he was making a “predictable” 6% ROI per year in a “consistent fashion” for two decades?

I guess he must have rolled the dice a couple of times, unless he is like one of the CEOs making the yearly salary of the basement people by noon on the first work day of the year or inherited a healthy sum…

Which one is it?

It’s sarcasm. Hard to believe what people will believe. — Garth

#71 Braj on 01.09.17 at 9:31 pm

#43 green one on 01.09.17 at 7:57 pm
“…the comfort of his mid-town mansion, trophy wife and Porsche to come here and argue the case for paying a dude like him fees to manage your money”
……………..
Wow, your most arrogant post yet.

I may have misjudged the comprehension of this audience. — Garth

Ha! I was thinking the same reading the responses from yesterday’s post. The quickness of some to get their knickers in a bunch astounds me. It’s s weird to me because it’s not mental ineptitude, but a whole other beast. People take things offensively so often, it’s like the result of being a mentally confident weakling.

#72 Wrk.dover on 01.09.17 at 9:36 pm

But with a neck tie you can make money stealin’…

#73 Kenny on 01.09.17 at 9:36 pm

Any advice for someone lucky enough to have maxed Rrsps Maxed TFSA and two reliable pension streams?

I have too much cash sitting around and would like to invest in term life insurance to grow an investment tax free. I’m a natural saver and luckily have my woman trained to think this way too.

Of course I don’t own real estate currently. I rent for 1875 total, combined with my fiancée in downtown van nicely subsidized by my landlord.

I am forty and healthy, and make about 145k a year.

The woman makes about 80k.

Thinking about knocking her up soon.

I have a few hundred k scattered in other open investments too.

I like the tax free growth in a term life insurance plan…. good idea?

I know my problems are good to have.

Term life has no tax-free growth. And we’re telling your wife how you refer to her. — Garth

Oops….. I meant whole life….. my bad. How about term life?

I call her woman all the time…. she already knows.

#74 northerngirl on 01.09.17 at 9:40 pm

I’m laughing my head off right now. Poor Garth. Your attempt at sarcasm (re: Ryan’s mansion and trophy wife) is causing a riot here. I love this site…for solid advice and for laughs!!
Thank you Garth…again. If you ever get bored, write a novel. Seriously.

#75 Braj on 01.09.17 at 9:43 pm

#56 Ben on 01.09.17 at 8:37 pm
Garth, I like your blog. A lot. But how do you go from having a special blog on Boomer, for whom you went out of your way to look for and dedicated an entire blog for to then pretty much disrespect almost everyone that exist tonight. Including that poor lady, who I am sure, life hasn’t been easy at all the last year.

Just my two cents. Hopefully positive critism. I’ll still be a reader.

Sweet Benny, the disrespect is taken on your end. What is dished out are only words until they are received and interpreted by the one in question. Crazy people go on saying all kinds of things on the subways and streets, are you disrespected by that? Speak for yourself, it makes for a more bold and truthful debate.

#76 Smoking Man on 01.09.17 at 9:45 pm

Advisors who get people on their feet, help them stay that way and grow some wealth are not the enemy. Even Ryan, who’s now home convalescing. On silk sheets. Pray for him.
……
Ha…. he’s a trader, snowflake as you described him would only last a week in the Trade.

Nice try Gartho.
………

Hunter S Thompson once quoted “you don’t know where the edge is until you go over it.”

Well, last night at Seneca. I went over the edge by accident. Part of me is emarrased, the other part wierdly proud.

Not ready to share what happend just yet , but I drink alot . Stay tuned. Definitely going into auto biography.

I won’t be going back to Seneca for awhile.

#77 BC gov just increased home buyer grand on 01.09.17 at 9:46 pm

So much for you renters waiting for a crash……
In Canada?, give your heads a shake folks….

#78 Braj on 01.09.17 at 9:50 pm

#66 Bond Junkie on 01.09.17 at 9:13 pm
I miss drugs too… When I was in university I could literally reverse engineer every topic of conversation going on in the bar simultaneously simply by observing the participants’ body language. Mushrooms are never the same once you outgrow the carefree zone. It’s a shame really…

– Bj

The body / body language implies the conversation. You can really tell alot simply by watching. The stringer your perception, the more you see.

#79 will on 01.09.17 at 9:51 pm

I started reading The Intelligent Investor again today. I think this is my fourth time around reading it.

#80 WUL on 01.09.17 at 9:52 pm

There can be no complaint about what Garth and his partners levy by way of fees. They charge what the market will bear. Prospective clients are free to shop around.

#81 Smoking Man on 01.09.17 at 9:55 pm

#66 Bond Junkie on 01.09.17 at 9:13 pm
I miss drugs too… When I was in university I could literally reverse engineer every topic of conversation going on in the bar simultaneously simply by observing the participants’ body language. Mushrooms are never the same once you outgrow the carefree zone. It’s a shame really…

– Bj
……

Why outgrow it. We are only on earth for a short time.

Have I got a story for you next time we have a beer.

#82 will on 01.09.17 at 10:00 pm

“I may have misjudged the comprehension of this audience.” — Garth

ROTFLMAO

#83 just a dude on 01.09.17 at 10:04 pm

Neither. Through hyperbole and literary device. — Garth
————————
Ok, now that was an awesome response.

As for those who are offended and insulted by today’s post, Geez, I just don’t get it. Folks, you’ve got to chill a bit and grow a thicker skin. Life’s too short.

I’d much rather read Garth’s frank & yes, sometimes harsh, opinions rather than sugar-coated words. Sure I don’t agree with everything mentioned but I do respect and appreciate Garth’s sharing of his experience and knowledge, and all for free for Pete’s sake! What’s to complain about?

#84 pollsters on 01.09.17 at 10:05 pm

Wow, your most arrogant post yet.

I may have misjudged the comprehension of this audience. — Garth

====

That’s exactly what all the pollsters said on election night.

Moral of the story: know your audience.

You can’t show off with a Porsche driving advisor for people who get heart attack from the $3 price sticker on the organic cauliflower.

It puts Ryan in the same box as “realtors with shiny Audi”, if I recall the brand and the adjective correctly.

Sarcasm can’t fix that.

#85 d'Edmonton on 01.09.17 at 10:09 pm

32 Nonplused on 01.09.17 at 7:35 pm

To make my point, again hypothetical portfolios, a dude with a $10,000,000 portfolio will pay $100,000 a year in fees to his FA, whereas the guy with a $1,000,000 portfolio pays only $10,000. Yet I bet both portfolios are pretty similar and take about the same amount of time to manage. The FA just has to add one more 0 when he puts in the buy and sell orders for the first client.
————————————-

I remember Garth writing in a post a long time ago that as a client’s managed portfolio grows, the fee that a financial advisor charges could be less than 1%

#86 mark on 01.09.17 at 10:10 pm

Why would I pay for financial success when I can screw my finances up for free!

#87 IronMike on 01.09.17 at 10:12 pm

#67 Tony
“If it was me I’d immediately walk away from the house in Calgary and hand the keys to the bank. On the low side the $750,000 house would be now worth $600,000”
___________________________________________

You are totally out to lunch,

You can’t walk away from a mortgage insured by CMHC, which this place clearly is, secondly the price wouldn’t have depreciated nearly that much.

There are official stats quoting a 4% price decline in Calgary in 2016. I sold a house in Calgary less about 6 months ago (closed in June 2016) for $640k. I bought in June 2013 for $650k.

#88 Metaxa on 01.09.17 at 10:19 pm

Perhaps a redirect to https://www.reddit.com/r/PersonalFinanceCanada/ for certain ISPs might be in order?

some of you really need to proof read your posts and ask yourself “Does this add anything of value to the many readers here?”

Unbelievable to me how shitting on our host would be considered anything worthy of publication. You are a better person than I would be in a similar situation Garth.

Ugly people abound and left alone they seem to embolden themselves. Time to stop it, eh?

#89 Stock Picker on 01.09.17 at 10:31 pm

Garth, you might be interested to know that “a blue collar workers salary” in Vancouver includes a luxury pension and all the perks including family medical premiums dental, life insurance, upgrade education allowances, and a salary in excess of $100,000 p/a. …many make $150, 000 and more with union mandated overtime and additional stats that no one else gets. A gardener makes more than $100K ! An engineering dept union member likely makes in the $200 K range…so don’t cry for these people.

The mayors assistant makes $368,000….as much as POTUS! The police chief in Vancouver makes $214,000 more than his counterpart in New York City! The CEOnof BC Ferries makes $900,000 more than the guy who runs Washington state ferries….an exact same business in size.

The Sunshine List should posted on the wall of the voting booth to wake people up over how egregious civil servant salaries, pensions and perks are.

#90 For those about to flop... on 01.09.17 at 10:34 pm

In the U.K they are trying to get people to pay tax for selling stuff on EBay and Air Bnb…

M42BC

* WARNING* This is from a British tabloid, the fragile people on here might see something on this site that offends them…

http://www.dailystar.co.uk/news/latest-news/576847/thousands-ebay-sellers-face-tax-bills-selling-buying-hmrc-shared-economy

#91 yorkville renter on 01.09.17 at 10:35 pm

I choose to live life well, by keeping my vehicle expenses (averages $150/mo, all in) and housing expenses low ($2500/mo, every month).

I have an advisor watch my money while my wife and I eat out, travel, and go out with friends.

left school with $50k in debt and lived at homw until i paid it off (four years) but now I live the high life.

lost my job in the summer… havent had a paycheck since… still spent a month in Europe… no bloated mortgage noose around my neck

#92 Smoking Man on 01.09.17 at 10:40 pm

Been on a marathon watching breaking bad on net flicks. I never saw the original. Wow. Holy molly.

The actors get all the glory. Memorize regurgitation.

It’s all about the writing. It’s content creation.

Watching it with closed captions on. Learning a shit load.

Writers rule. Pay sucks but you know they are the most satisfying to themselves.

Ill Be one in the next life. Content to be a drunk to the end. It’s not over when the heart stops.

A little bastard flying an orange plasma flier told me. I believe him.

#93 Nonplused on 01.09.17 at 10:41 pm

What do you do for a living? — Garth

My TN Visa says “management consultant” and I do most of my work in the US these days because that is where the work is, which means I spend a lot on accountants (but not nearly as much as on my FA).

I don’t disparage FA’s for making a decent buck, and I guess the market dictates these things, and I am happy to have one because it saves me a lot of time. Maybe 1% is fair and works out to $350 an hour once you count all the research, I don’t know. It just seems like a lot of money. For $10,000 a year I could be driving a BMW.

There is a new add on the internet criticizing all these fees. Which I guess they can make any adds they want, and I suppose if your FA gets you better returns he/she is worth the money. But it is a lot of money. For me it’s my second largest annual expense besides taxes. Well that’s probably not true if you account for the money tied up in my house but I haven’t counted the economic rent associated with that.

#94 45north on 01.09.17 at 10:43 pm

You’re nuts. Not only did you make big, dumb mistakes back in Calgary, but you seem ready to repeat them in Vancouver. The rental townhouse is surely making you absolutely nothing after property taxes and the lost use of your down payment, while the large house is a financial sinkhole, dishing up a sustained monthly loss while it quietly depreciates in a disastrous market. Of course you need to sell. Immediately, because things will only get worse.

at least Lorna and Jason asked for advice. They might not like it but they did get an answer. What about the people that don’t ask? As Xiaoyuan said: “they pay later”.

#95 Ontario's Left Coast on 01.09.17 at 10:51 pm

Haters back off. The strategy put forth by Ryan and Garth is sound, reasonable and practicable. I’m living proof.

And many of the dogs need to learn how to take a joke without going into a rage. Yeesh!

#96 WUL on 01.09.17 at 10:59 pm

Further to my comment above about Turner Investments fees. Their rates have no impact on the public purse. My colleagues in the legal biz with their efforts to price themselves out of business are affecting your taxes. The rise of unrepresented litigants bogs down the court system, costs us all with the consequent delay and inefficiency and will create a crisis before too long. If you want to rail on about inflation in costs that affect you, try that.

While it would make me few friends (learned or otherwise) at the Bar (legal, not booze) I may embark upon becoming the Tommy Douglas of legalcare. We all need it, like medical care, at some point in our lives.

#97 Cristian on 01.09.17 at 11:01 pm

Well, I have not 2 but 3 kids, I live in Vancouver too, and I rent for almost $3000/month a beautiful penthouse with great views. Everything is within walking distance: stores, parks, schools. Repairs and maintenance are just one phone call away.
The income from the money I invested instead of sinking in a wooden box are bringing me an income four times bigger than our monthly rent. In other words, it pays the rent and I am still left with almost $10,000 each month.
But, wait, how silly of me! How are my kids going to grow up in an apartment? How are they going to become well-adjusted adults without a 30 sqf backyard?… How did I grow up in an apartment and still do pretty well in life (for an apartment dweller, that is)? OMG, what was I thinking!!!? I think I am going to throw up now.

#98 InvestorsFriend on 01.09.17 at 11:04 pm

Do Not Under Estimate People

It’s sarcasm. Hard to believe what people will believe. — Garth

**************************************
Do not underestimate people’s gullibility.

Do not under estimate the capacity of people to be offended.

People, this blog has always featured that kind of humor and imagery. Like it, lump it, or leave it.

#99 Paul on 01.09.17 at 11:06 pm

#70
Which one is it?

It’s sarcasm. Hard to believe what people will believe. — Garth
=====================================
Yes just like Realtors making buckets money 85 % fantasy, people believe anything the fits their narrative!

#100 TurnerNation on 01.09.17 at 11:07 pm

This weblog should get sponsorship from Dollarama. It unites rich with poor.
Maybe one day I’ll be able to ask my driver, nose-up the Bentley there, as I run in for a replacement shower curtain (mildew you know).

Where the lowest price is the law?!

#101 jane24 on 01.09.17 at 11:12 pm

There will be 100,000s of Lorna and her hubby over the next few years. Poorly educated and greedy folk who got sucked into the RE Make Money Quick sickness.

Lorna those down payments are gone already. If you don’t sell quick then expect to actually pay to get out of those deals. You are starting again so there is no money to get into the declining Vancouver market, lucky for you two.

#102 Barb on 01.09.17 at 11:20 pm

Sad.
P.Eng –> blue collar.

Seems university is a good babysitter to keep the unemployment rolls low.

#103 Dark Matter on 01.09.17 at 11:21 pm

I thought Ryan’s blog was logical and informative. I thought he was just telling it like it is. I was a little surprised by the negative comments.

#104 S.Bby on 01.09.17 at 11:30 pm

#33 Nonplused
A guy with a 10 million dollar managed portfolio will not be paying 1%

#105 For those about to flop... on 01.09.17 at 11:30 pm

Pink Snow Alert in Delta…

M42BC

4-5671 Ladner Trunk Road, Delta
Dec 23:$888,000
Jan 9: $599,999
Change: – 288001.00 -32%

#106 Last of the boomers on 01.09.17 at 11:32 pm

There is no reason to roasting Ryan. He is brilliant. Be thankful of his technical knowledge. Garth has been baiting you all with tongue in cheek as he does most blogs as it encourages you to participate. A method to get you all to engage. Including the references to the bank of mom, when everyone else in the world rightly refers to it as the bank of mom and dad. Take none of this personally. Just get interested, engage, read, learn, participate, and share your learning with others?

#107 stage1dave on 01.09.17 at 11:33 pm

That was interesting…had to go back and check out Ryan’s column ’cause I worked all weekend and missed the live show haha…

Human nature a funny thing…perhaps we all resent someone telling us how we should do stuff, even when it’s apparent we have no idea what we’re doing…even to ourselves.

Took me years to learn what any competent tradesman eventually figures out; we all have our “areas of expertise”, and it’s a better use of everyone’s time to simply farm out work that yer no good at, don’t enjoy, or simply can’t perform efficiently.

(at the rates I charge, I would consider it unprofessional to “practice” on a customers vehicle, storefront, or motorcycle…so would the customer. I sub out the “I’m no good at it” stuff to someone who is)

I’m not certain why so many people choose to ignore this simple truth when saving, investing, or putting aside tangible assets for future use and/or appreciation? Maybe Google (or I-trade) has made everyone a pro…about everything.

I’ve learned the hard way (many times) there’s a huge difference between exposing one’s self to lots of pertinent information on a certain subject, but not having any practical expertise so that you can actually do something intelligent or practical with it…that takes experience, which generates practical knowledge.

(Or, as Dr. Foth once keenly observed, ambition without talent is a terrible thing!)

I prefer to hire a pro and move on to what I’m good at…for instance, I’ve learned enuff her in steerage to simply entrust the pitiful remains of my meager monthly savings to someone who’s forgotten more than I’ll ever know about long-term investing.

Lastly, I’ve noticed over decades in the car hobby that the worst critics of any paint, build, or purchase are always wives, relatives and close friends. Their individual or collective practical knowledge is irrelevant…they’ll pick apart anything they don’t like!

Guess that’s true of everything, but I did meet a very cynical shop owner once who told me that he should just start meeting the customers friends and relatives before commencing the project, and just build the car to their specs…to hell with the guy actually paying for it.

Don’t know if he actually followed thru, but it mighta made for less comebacks…

#108 conan on 01.09.17 at 11:37 pm

My investment cheat sheet:

Market Bull run = ETF’s better
Mixed market= Managed funds better
Bear market= Be completely out of regular index ETF funds
Good advisers stay in contact throughout the year. They will share ideas over the phone. Within a year or two you will know if your adviser is good or not.

Some caution is needed when investing money. It is not about hitting home runs. It is about hitting singles and doubles.

Don’t sweat the fees if your adviser is hitting Alpha all the time.

#109 Deplorable Steerage Wisdom on 01.09.17 at 11:37 pm

People are nuts. What ya gonna do. Yes they could use your help!

But it’s crazy that people need a FA to avoid making such silly mistakes. FA should be for complex estates etc, not common sense stuff like hat.. Oh well what ya gonna.

#110 For those about to flop... on 01.09.17 at 11:39 pm

Some pink snow falling in Richmond too…

M42BC

6471 Constable Drive, Richmond
Nov 1:$1,488,000
Jan 9: $1,118,000
Change: – 370000.00 -25%

5251 Brock Street, Richmond
Nov 7:$1,298,000
Jan 9: $980,000
Change: – 318000.00 -24%

#111 boonerator on 01.09.17 at 11:42 pm

The problem with the balanced portfolio that kicks out 6% a year is that it is no fun at parties.
“Yeah, I got a good deal on the beemer, lease rates are insanely low”.
“These marble kitchens are to die for”.
Here’s you:
“My CPD paid me $4000 in distributions last year”.

#112 DON on 01.09.17 at 11:44 pm

#50 Al on 01.09.17 at 8:11 pm

It took a “foreign buyers tax” to bring Vancouver Real Estate to its senses, and we need the same here in Toronto like yesterday.
***************

Recently even the BC Realtors have come to grips with the Vancouver market peaking in March 2016 several months before the July foreign tax. People can’t afford it – really just that simple. Its the Vancouver theme, if you live there it consumes you. The biggest trend going. Easy to get caught up in it.

#113 DON on 01.09.17 at 11:47 pm

#110 For those about to flop… on 01.09.17 at 11:39 pm

Some pink snow falling in Richmond too…

M42BC

6471 Constable Drive, Richmond
Nov 1:$1,488,000
Jan 9: $1,118,000
Change: – 370000.00 -25%

5251 Brock Street, Richmond
Nov 7:$1,298,000
Jan 9: $980,000
Change: – 318000.00 -24%
****************

Richmond was never a really desirable place to live and judging by these declines yikes. Here we go..!

M45…VAN ISLE

#114 Pete on 01.09.17 at 11:48 pm

I love the bluntness of Garth’s answers to peoples questions.
Reminds me of listening to William Cooper on the shortwave throughout the ’90’s.
He’d call his audience a-holes, retards, morons, jerks, idiots, etc. We knew if it applied to us personally or not.
I learned more listening to him than I ever did in school.

#115 DON on 01.09.17 at 11:55 pm

#56 Ben on 01.09.17 at 8:37 pm

Garth, I like your blog. A lot. But how do you go from having a special blog on Boomer, for whom you went out of your way to look for and dedicated an entire blog for to then pretty much disrespect almost everyone that exist tonight. Including that poor lady, who I am sure, life hasn’t been easy at all the last year.

Just my two cents. Hopefully positive critism. I’ll still be a reader.

8888888888888888888ball
I understand your point of view. Garth potentially saved her and her husband a world of pain, by not telling her what she wanted to hear (all is fine). Now she might think something is wrong and she should. She was perfectly happy telling Garth she had multiple properties. She needed to hear the tough truth.

She is not a child and should not be treated as one. She did what most in Alberta did, but multiple properties and never expected a correction. YIKES! give me a scooby snack. This is going to be scary.

#116 Barb on 01.10.17 at 12:00 am

Gawd, people are testy tonight!

Lighten up folks.

The humour/sarcasm of Garth and his partners is the second reason we read it daily.

The first is the financial advice.
All for free.

Rope needs more slack, folks.

#117 DON on 01.10.17 at 12:00 am

#77 BC gov just increased home buyer grand on 01.09.17 at 9:46 pm

So much for you renters waiting for a crash……
In Canada?, give your heads a shake folks….
****************
This is about property taxes ….read the article again.

#118 Winterpeg on 01.10.17 at 12:05 am

Can Turner investments open a branch in Winnipeg?(please) Or do you know of one with a similar philosophy/strategy as yours in the Peg? I am looking around for a new advisor.

Our practice is national. But if you want a cute advisor whose eyes you can gaze into, go to the bank. — Garth

#119 S.Bby on 01.10.17 at 12:15 am

#97 Cristian
According to Bdy Skytrn you are abusing your children if you are a renter and the kids don’t grow up in a house owned by their parents. He is on record with this blog for stating such.

#120 tkid on 01.10.17 at 12:38 am

Lorna,

at least once a month you do the equivalent of handing $800 over to a perfect stranger on the street. You do this to keep the bank from seizing your $750,000 house. “Sell in the spring” is fantasy language for “we can’t sell the house.”

Neither the house nor townhouse are going to sell for the amounts you desperately need. In fact, you’ll need to bring money to the sale in order to discharge your mortgage. Why? Because you’ll waste 18 months while your overpriced properties languish on the market. In 18 months time there is a greater than decent chance that Trump and his merry band of sharks will have savaged the Canadian economy. By the time you get serious about selling both properties, both properties will lose 30 to 50% of their current value.

And if you do get lucky, you have every intention of jumping into another real estate market that is Not Doing Well.

Sell both properties now, for whatever the market says they are currently worth. If you sell both and money comes back to you, put that money into an emergency fund and pretend it no longer exists.

#121 Nonplused on 01.10.17 at 12:42 am

#104 S.Bby

So what do they pay then? 0.75%? That’s still a lot of money on $10,000,000. I’m not saying it’s unreasonable I don’t know it might be if they do a good job and get good returns. But like real estate agents it has all been about the returns.

Eventually the “invisible hand” will do it’s work and an investment adviser will charge out at a rate comparable to other professionals. Well, assuming that hasn’t happened already but I think my FA doesn’t spend $10,000 a year on my account at $350 an hour. Maybe I need a new one.

Anyway, I am not against FA’s, I agree with Garth everyone should have one and I do. But the fees seem breath taking. If he was only working for me and a few other people, enough to get scale, then ok, but I think my army of accountants does more work for less than half the price.

Anyway it is a market based solution. The market will bear what it will bear. I have to pay $140 an hour to have a guy work on my car so things aren’t cheap these days. But what if the deal was you had to spend 1% of the value of your car every year whether it needed fixing or not for maintenance? Actually now that I think about it that wouldn’t be so bad.

#122 Allegory of the Cave on 01.10.17 at 1:00 am

“CIBC found that most people have financial stresses, but almost half (48%) say they have no intention of cutting back frivolous spending in order to face debt, pay bills or invest. A third of people incurring new debt in the past year admitted it was not because they bought something, but overspent and needed to borrow to pay bills

Three-quarters of people have no intention of setting up a household budget, and for most of us saving for a vacation ranks equally to putting money aside for the future”

As many commenters above have alluded to, some of the most serious issues with “the bulk of us” outlined in the post extend well beyond financial illiteracy. If a financial advisory team can reliably and consistently completely turn these issues around, well, I think their talents are being wasted at their endeavor.. they could save humanity from itself, but I disgress..

“The bulk of us are emotionally ill-equipped to look after our own money. That’s why we screw up”
“Advisors who get people on their feet, help them stay that way and grow some wealth are not the enemy”

Our host seems very aware of that the issues involve things beyond financial literacy.

In response to a question about the viability of a “couch potato” style portfolio, Ryan responded by stating that he once worked at a discount brokerage and watched DIY investors “blow themselves up”. Todays post opened with the following paragraph:

“I should have told him everyone here’s a genius, alpha-adding macroeconomist who’s learned that 15 minutes’ worth of Googling beats his two decades of securities industry experience and string of designations hands-down. Silly boy”

The tone is obviously in jest, however this perpetuates the idea that one needs to have any one of those qualities (i.e decades of experience, alpha beating macroeconomist, string of designations) to invest well. It also seems to reduce some DIY to “15 minutes worth of Googling”. Of course a “couch potato” type portfolio for example will take more than 15 minutes at first, however most of the relatively short time would be spent not in picking the ETFs (as people with “decades of experience” have already done the heavy lifting/research for you), but in understanding why to do so and thus being confident in this rather important decision.

Ryan’s response was in a similar spirit. A DIY OR professional investor can absolutely blow themselves up by stock picking and/or timing the market, and although this may be an accurate generalization, that was not the question however. It is hard to imagine a scenario where one can “blow themselves up” by periodically (say with every paycheque or two) buying a few diversified, low cost ETFs and holding them in the desired proportions. Unless of course they do not actually follow the “coach potato” type strategy of holding and start attempting to market time (” is coming! take me to cash!!” as youve pointed out some of your client have done in the past despite your best efforts)

Comments like these perpetuate the idea that setting up a simple ( a few ETF’s), low cost, well performing diversified portfolio is either A) too hard (“decades of experience”), or B) too dangerous (you’ll blow up!). This would be a disservice to many, we should continue the theme of this blog of financially empowering people, for example by encouraging the financial education of simple, diversified, low cost well performing DIY investing, instead of telling them that it’s too hard and dangerous, and besides, the bulk of you are emotionally ill equipped even if you can overcome the first two obstacles. Let FA’s take care of you for a fee of 232K. or about a half mill for those of you flush with a 1 mil nest egg. This makes “the bulk of us ” feel powerless and as victims of our emotions.

Financial advisors provide a needed service for many, however let’s not look down upon or discount simple and proven DIY strategies. Nor overestimate an FA’s ability to “fix” financial issues through financial reason and knowledge when most of the serious issues are much deeper than that. For those with the right temperament, saving that 232k fee would be a great aid in getting them on their financial feet!.

BTW I think Ryan did great, especially considering that the validity of his source of income (and Porsches) was being questioned!

#123 Fleurdeslis on 01.10.17 at 1:14 am

I would like to have someone like Ryan helping me with my money, but I cannot afford his help yet. In future, it is my intention to leave the DIY since I do not think I can be as effective as a pro.

Thank you for sharing your knowledge and experience

#124 Newbie on 01.10.17 at 1:29 am

#39 Dick C
Fellas – Keep in mind that investment fees are negotiable. Whether it’s because you already have a large portfolio, the potential of being a long term client, or are a nice guy and not a high-maintenance jerk, many advisors will lower commissions to earn your business. I pay .5% for a very solid advisor who has performed well in good markets and bad.
—-
The best point so far in the comments )

#125 tccontrarian on 01.10.17 at 2:21 am

Another example of how hopeless it is.

some times you just have to laugh at how stupid people are! Go ahead, honey, buy a TH in Vancouver! The Alberta situation seems to have taught you nothing!

Unfreakin believable!

tcc

#126 ...you forgot HELOCs on 01.10.17 at 4:07 am

How some incur debt for vacations and overspending:

The Canadian Association of Accredited Mortgage Professionals says that 22 per cent of Canadian homeowners (2.15 million) had a HELOC in 2014 (200,000 of them had a “nil” balance).

In 2014 they owed an average of $57K with an average approved credit line of $135K.

Home as ATM.

Clearly, these people passed the Canadian Securities Course.

For the ill informed whining about what should be taught at University, where I taught, they had a course to help you pass the CSC exam and it was well subscribed (the Professor teaching it, at the time, got the highest mark ever on the exam herself and did very well investing – teaching was a pass time for her and a way to put something back into Society, as it was for me).

bsant

#127 pBrasseur on 01.10.17 at 6:43 am

Of course you need an advisor, if it’s a good one.

But be aware that the vast majority work for banks and are essentially salespeople that sell the banks products for outrageous fees.

You’d do much better simply following Warren Buffet!

#128 DoomandGloomer on 01.10.17 at 6:49 am

#32 Linda

“As for children, yes they are great but they are also very expensive so digging out of the financial hole prior to the blessed event(s) would be a priority –”
——————————————————————–

Sound Advice.

Unfortunately, it falls on deaf ears. Just like Ryan’s and Garth’s advice. Wasted on morons.

The vast majority of people out there are idiots. Thick.

They want it all, and they want it NOW. No research. No sacrifice. No patience. No brains.

Driven by FOMO and jealousy, delayed gratification is a foreign concept to them. Yet, they think they know better.

Doomed.

#129 abouttoretire on 01.10.17 at 7:06 am

#121 Allegory of the Cave

Regarding your long winded comment….

Please click the link:
https://www.youtube.com/watch?v=0amKyoL9hIA

#130 Lana on 01.10.17 at 8:13 am

The best decision I have ever made was getting a financial advisor. I only wish I had done so a lot sooner. My second best decision was reading this blog, asking a question about whether to sell my house and rent, and getting good advice from Garth. I sold my house and invested the profits. I am close to retirement and would not have been in a position to do so, without taking Garth’s advice. My advice? Listen to Garth.

#131 Penny Henny on 01.10.17 at 8:19 am

Just call me daddy.

Trophy wife is an informal term for a wife, usually young and attractive, who is regarded as a status symbol for the husband, who is often older or unattractive, but usually wealthy. Such a gentleman may be referred to as a sugar daddy. Wikipedia

#132 john p. on 01.10.17 at 8:23 am

Garth, I have been reading your articles for years. In fact I go so far back as to recall being a subscriber to your news letter back in the 80.s. Wow ! that was a real estate ride and a half. I got spanked so hard back then that I couldn’t sit down for 10 years. Todays article woke me up. Garth, of late I observe a lot of escalating anger and frustration coming out in your comments. This behavior reminds me of a dear friend who went from a meek and mild individual to an argumentative pain in the ass. It was only after his heart attack that I became aware that a rapid change in personality can often predict a pending health issue. The observations are boilerplate, what are called “tourist insights”. That’s going reeeeal deep down memory lane. Take care. John P.

Ahhh, John, you care. I’m touched. — Garth

#133 crowdedelevatorfartz on 01.10.17 at 8:26 am

@#62 The green 1
“…and what can we take away from your internet handle?”
*******************************************
Nothing subconcious about it.
A horrible stench in an elevator.
And dont tell me you’ve never experienced it…. :0
Just like envy, only more physically replusive.
Next time it happens…..think of me.

#134 AfterTheHouseSold on 01.10.17 at 8:26 am

Government giveaways keep on rolling in Ontario.

“Honda’s investment will be supported by an additional $83.6 million in government money, split equally between the Ontario and federal governments.”

“… the federal government said it will introduce changes to its automotive innovation fund (AIF)
On Monday, the government said it will now “include the option of recipients receiving contributions without the expectation of repayment.”

http://business.financialpost.com/news/transportation/honda-canada-inc-plant-gets-500m-upgrade-as-ottawa-announces-auto-incentive-changes

How’s your job security? Government stepping in to save your job?

#135 crowdedelevatorfartz on 01.10.17 at 8:36 am

@#98 Investor’s Friend
“Do not under estimate the capacity of people to be offended.’
*******************************************

yep. Total agreement.
Apparently all the politically correct indoctrination at school, at work , at play has sucked all the irony and humour out of the emotionally sensitive types that throw hissy fits when they are reminded that….fools and their money are soon seperated…..apparently it hits too close to home.

Politically Correct and financially braindead is one way to go through life I suppose……however the painful, uncomfortable(for pc buttercups) truth is………….financially stupid is stupid, sorry if you dont like being reminded how financially inept you are but thats life.
Either surrender to your situation or learn something and change.
Just dont whine to the messenger about the cruelty of the message.

#136 down and out on 01.10.17 at 8:49 am

My story : big downturn many of us got buyouts ,wise old friend advised me to see a FA for tax planning and investing ,10 years later still getting a monthly top up from proceeds plus my pension .Many friends spend buyouts on house renos ,vehicles saving very little. I thanked my wise friend many times for that chance conversation and see my others cohorts struggle along some bitter and envious .I was asked to speak to fellow union members about the wind fall(buyout)at the time but knew few would listen and only had visions of new toys in their heads very sad situation after pension cuts happened.

#137 Invictus on 01.10.17 at 9:10 am

#15 Digby Ditherman on 01.09.17 at 6:59 pm

How about hug as well?

Out of the night that covers me,
Black as the pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.

In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeoning of chance
My head is bloody, but unbowed.

Beyond this place of wrath and tears
Looms but the Horror of the shade,
And yet the menace of the years
Finds, and shall find me, unafraid.

It matters not how strait the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the captain of my soul.[1]

#138 Johnny Boy on 01.10.17 at 9:11 am

#76 Smoking Man on 01.09.17 at 9:45 pm

Advisors who get people on their feet, help them stay that way and grow some wealth are not the enemy. Even Ryan, who’s now home convalescing. On silk sheets. Pray for him.
……
Ha…. he’s a trader, snowflake as you described him would only last a week in the Trade.

Nice try Gartho.
………

Hunter S Thompson once quoted “you don’t know where the edge is until you go over it.”

Well, last night at Seneca. I went over the edge by accident. Part of me is emarrased, the other part wierdly proud.

Not ready to share what happend just yet , but I drink alot . Stay tuned. Definitely going into auto biography.

I won’t be going back to Seneca for awhile.
—————————————————–
If you were as ballsy as this I would give you Kudos.
https://www.youtube.com/watch?v=2o1KHpIlCB0

#139 bdy sktn on 01.10.17 at 9:14 am

SBby – hello friend. Nice to hear from you. I’m going to s bby today, I’d love to meet up to buy you a drink. Hope all is well with your family.
All the best to you.

Regards, Bdwy dude.
M50eastvan

#140 Capt. Serious on 01.10.17 at 9:22 am

I’ll eventually be interested in an advisor for tax planning and estate planning purposes, but as for asset class allocation and using low cost ETFs for exposure to them, “I got this”, as they say.
2008-2009 was a pretty good stress test of your investor behaviour. If you stayed invested and backed up the truck with money to buy more equities, you can probably manage your money. If you bailed out, you would be better served working with an advisor.

#141 traderJim on 01.10.17 at 9:25 am

#45 Investor’s Friend

“Edmonton is, by far, the best place to live in Canada”

People need to start using the /sarc notation, it’s really hard to tell when people are being sarcastic.

Some people might read that and actually think there is something positive about living in Edmonton.

Next thing you know someone will be saying Winterpeg is nice too, lol.

#142 Dups on 01.10.17 at 9:25 am

Real estate has been the “New Drug” for the last 15 years, and the Gov has done nothing to curb it off, instead they have profited from it in a calcareous way!

#143 Self Directed on 01.10.17 at 9:32 am

#65 For those about to flop… on 01.09.17 at 9:04 pm

Smartie, they are going to raise the threshold to 1.6 million for the property tax deferral in Vancouver…

M42BC
…………………………………………………
Yup! Christy diddled it again. Gotta keep these millionaires from going under. Clearly they do not want the market to correct. If they didn’t step in… well, we’d have for sale signs going up. Can’t have that, now can we?

http://www.cbc.ca/news/canada/british-columbia/b-c-government-set-to-raise-homeowner-grant-threshold-1.3928365

#144 ROTFL on 01.10.17 at 9:32 am

“The rental townhouse is surely making you absolutely nothing after property taxes and the lost use of your down payment”

Most landlords who are too dumb to factor in taxes also don’t factor in monthly principal pay down, so the $200/month is likely cash flow, not including maintenance or vacancy allowance, and possibly not including taxes. A townhouse with 20% equity and bought more than a few years ago ought to be cash flow positive in most markets.

#145 dosouth on 01.10.17 at 9:33 am

Lesson learnt hopefully Ryan. Giving medicine means you have to understand what the side affects are.

Lead by example and hopefully he has an advisor who is as objective as he states.

#146 The Technical Analyst on 01.10.17 at 9:43 am

Ryan – Sorry I missed posting to your blog yesterday, I did read it and it was a very good one!

Hiring an financial advisor is ALWAYS* a great idea. I pay a little less than 1% fee year, but that’s more than most people make a year to be honest. Still, it’s well worth it and it’s tax deductible as well.

A little Financial Literacy goes a long way. Keep it up Ryan.

*Just do your due-diligence first.

#147 Leo S on 01.10.17 at 10:17 am

The problem was your partner never made an argument for the 1%. I can (and do) buy and hold low cost index funds myself and save the 1%. What’s you argument for paying an advisor thousands of dollars for what is an extremely simple task?

Then don’t. Good luck. — Garth

#148 Pillsbury on 01.10.17 at 10:30 am

Great post Garth.

It’s quite funny after all the years that you have blogged that people are still getting offended by your sarcasm and blunt assessment of the emailed case studies. It’s not your job to coddle people looking for free financial advice!

#149 Brad Wilson on 01.10.17 at 10:36 am

I have used financial advisors twice and regretted the experience both times. Ever hear of Sino Forest? Unfortunately my financial advisor and the brain trust in Toronto he relied on had. Lost big on that one.

Every profession has its bad apples. Tell me how to avoid them.

How many times do I need to warn about investing in individual securities? — Garth

#150 Bytor the Snow Dog on 01.10.17 at 10:45 am

Whaaaaaaaaaaaat? Ryan DOESN’T have a midtown mansion, Porsche, or trophy wife?

He must be a piss poor advisor! :-)

#151 Braj on 01.10.17 at 11:10 am

#85 d’Edmonton on 01.09.17 at 10:09 pm
32 Nonplused on 01.09.17 at 7:35 pm

To make my point, again hypothetical portfolios, a dude with a $10,000,000 portfolio will pay $100,000 a year in fees to his FA, whereas the guy with a $1,000,000 portfolio pays only $10,000. Yet I bet both portfolios are pretty similar and take about the same amount of time to manage. The FA just has to add one more 0 when he puts in the buy and sell orders for the first client.
————————————-

I remember Garth writing in a post a long time ago that as a client’s managed portfolio grows, the fee that a financial advisor charges could be less than 1%

Not only that but it’s tax deductible. So essentially a 30% discount minimum.

#152 cramar on 01.10.17 at 11:13 am

The 4 cities in the U.S. with the highest percentage of millennial home ownership. The key is the cost of housing! Who would have thought?

http://www.marketwatch.com/story/4-cities-where-millennials-actually-act-like-grown-ups-2017-01-10

In general, millennials are shunning home ownership to live with their parents. Seems like a North American phenomena rather than a made-in-Canada one.

#153 NEVER GIVE UP on 01.10.17 at 11:15 am

#132 john p. on 01.10.17 at 8:23 am
Todays article woke me up. Garth, of late I observe a lot of escalating anger and frustration coming out in your comments. This behavior reminds me of a dear friend who went from a meek and mild individual to an argumentative pain in the ass. It was only after his heart attack that I became aware that a rapid change in personality can often predict a pending health issue. The observations are boilerplate, what are called “tourist insights”. That’s going reeeeal deep down memory lane. Take care. John P.

Ahhh, John, you care. I’m touched. — Garth
================================
Dont listen to him Garth!
A good “bitching session” can be refreshing and restorative!

#154 bdy sktn on 01.10.17 at 11:24 am

Flopper nails it. 1.6m cut off for grant in bc.
How’d ya know?

#155 NEVER GIVE UP on 01.10.17 at 11:33 am

#143 Self Directed on 01.10.17 at 9:32 am
#65 For those about to flop… on 01.09.17 at 9:04 pm

Smartie, they are going to raise the threshold to 1.6 million for the property tax deferral in Vancouver…

M42BC
…………………………………………………
Yup! Christy diddled it again. Gotta keep these millionaires from going under. Clearly they do not want the market to correct. If they didn’t step in… well, we’d have for sale signs going up. Can’t have that, now can we?

http://www.cbc.ca/news/canada/british-columbia/b-c-government-set-to-raise-homeowner-grant-threshold-1.3928365
====================================
I want our communist, command and control economy to end!
Anytime they want a vote or two they tweak this and that with our own money.
Why are taxpayers not in revolt in the streets?
Where can I get a can of “Christie-be-gone?”

#156 can't wait for election on 01.10.17 at 11:46 am

Forget the ‘salt’ wars, now the lower mainland millionaires getting their $500 grant extended cuz otherwise they would suffer an undue financial hardship. Never mind the renters having have to live on the streets unable to pay $3000 for a mouldy basement suite that is illegal and not registered because the millionaire landlord is too cheap to pay the extra taxes for. Or suite that has no smoke detectors cuz obviously the millionaire landlord can’t afford. Probably the other 9 properties and the restaurant the same landlord owns don’t have them either. Maybe the premier can introduce a taxpayer sponsored program to have all millionaires provided with free smoke detectors. But it better be done before the election time.

#157 mike from mtl on 01.10.17 at 11:50 am

#61 Deplorable Dude on 01.09.17 at 8:42 pm
..it’s me vs tnl@tb….

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

Honestly, that’s probably the best outcome. Anyone I know well enough I would never advise matters regarding money. human nature gets all funny regarding this plus any short term loss would be “your fault”.

Personally I never outwardly tell how I invest or recommend anyone to do so without prior research.

#158 InvestorsFriend on 01.10.17 at 11:55 am

People are offended by Financial Advisors?

#147 Leo S on 01.10.17 at 10:17 am

The problem was your partner never made an argument for the 1%. I can (and do) buy and hold low cost index funds myself and save the 1%. What’s you argument for paying an advisor thousands of dollars for what is an extremely simple task?

Then don’t. Good luck. — Garth

******************************************
A number of DIY investors here seem to think that Garth owes them an explanation for the 1% fee. (An explanation which he has given many times and which they simply don’t agree with so what is the point?)

Warren Buffett joked that when he placed an advertisement that he wanted to buy “collies” (big highly profitable and simple companies) a lot of people would call and try to sell him their “cocker-spaniels” (companies that were NOT big, highly profitable and simple).

Leo’s comment is the equivalent of someone calling Buffett and arguing that he OUGHT to be interested in cocker-spaniels.

Sheeh, the 1% fee-based solution is not for everyone but why would anyone get their shorts in a knot about it being offered in the market place? Just enjoy your cocker-spaniel and leave other people to buy collies.

As Warren said about those wanting him to call them about their cocker-spaniels “If the phone don’t ring, you’ll know it’s me”

#159 Lillooet, BC on 01.10.17 at 12:00 pm

#45 InvestorsFriend on 01.09.17 at 8:00 pm

By the way, Edmonton is, by far, the best place to live in Canada.

Funniest response of the year!

#160 IHCTD9 on 01.10.17 at 12:04 pm

Escape from the metropolis mortgage/debt quicksand is as easy as relocating outside of the bedroom communities serving said metropolis.

A couple where both make Ontario minimum wage with a touch of OT would clear about 3200.00/month together after taxes.

Outside the madness for a young couple starting out, monthly costs look like this:

Mortgage: $600.00 (2.5% on 125K)
Property taxes: $190.00
House insurance: $110.00
Hydro: $200.00
Heat: $80.00

$1180.00 all in. Minus say, another grand for food/fun/insurance on vehicles/splurge – and you’ve still got over a grand left still.

So invest 500.00/month and save the other 500.00 for toys you’ll need to fully enjoy the small town simple life. I suggest as follows:

Save that 500.00/month for 3 years, by then, you should then have the resources to save 600.00/month for 3 more. So 6 years after buying the house you’ll have over 40K to blow on the essentials of small town life. Go on a shopping spree and buy the following or similar:

2 Brand New Yamaha Kodiak 700’s with EPS – one for you and one for the wife, nothing other than Yamaha is acceptable – 9K ea

1 new plow for one machine above, WARN only – 1K

1 good used ATV trailer – 1.5K

1 good used 4×4 pick up, no Dodge unless 5.9 Cummins – 12K

1 good used boat/motor/trailer – 3K

1 lot hunting and/or fishing gear – 2K

1 – Old small 30hp gas tractor/dozer for extracting off road vehicles that you or your buddies sank, need one of these for too many reasons to list. – 2K

That’ll leave you with a few grand to pay insurances etc..

Keep saving that 600.00/ month and in 6 years upgrade everything – if you bought Yamaha and no Dodge (5.9 excepted) you will get 50%+ of your money back when you sell – and only have to kick in about 60-65% of what you did last time, but be able to go with Grizzlies this time instead of Kodiaks, and maybe get a quad cab 4×4 this time. Keep saving and you’ll keep getting ahead while owning nicer and newer toys.

The above is on minimum wage. Both would probably end up making 17-20.00/hr by 10 years at somewhere better than Timmies….

#161 JD on 01.10.17 at 12:12 pm

“Most of the general public has no faith in FA. No one saw the dot com bust coming, no one saw the GFC coming, no one saw the oil crash coming. Blah blah blah. Better to take their chances on bricks and mortar, at least they can blow their own brains out…”
That is THE MOST COMMON argument I face every time a conversation is held on what is more prudent buy RE or Invest.
I had conversations with gold mining company VP – he is parking 80% in RE and %10 – invest saying that he ought to, “in order to maintain acceptable social status for business”.
Teacher – all in RE
Aeronautical design Engineer – all in RE
Software Engineer – RE Only.
Doctor (GP) – RE Only
Bank IT Support (sysadmin) – RE Only
Me – investment only!
And every gathering I go through some red carpet walk of shame as I have nothing to show.
I think this is why any striving FA are charging what they charge. In addition to the above the other things like huge number of shady FAs who left BIG trust concern residue during initial attempts in investing for financially illiterate pal.

#162 Still Employed in AB on 01.10.17 at 12:14 pm

I’m quite concerned about how much building is still going on in AB given that I believe out migration will pick up in 2017 as capital budgets are already in place with not much great news on the horizon….Unless you like getting taxed more while wages go down.

http://www.atb.com/learn/economics/Pages/the-owl.aspx?aid=662

#163 Chris on 01.10.17 at 12:15 pm

The way you talk up his life/possessions… and mention a trophy wife.. cringeworthy.

#164 meslippery on 01.10.17 at 12:18 pm

One percent for a year of managed money, fair enough.
But you said 5-6 % to a real estate agent for a weeks work was a good idea…..

#165 Somewhere on 01.10.17 at 12:36 pm

Good Financial Advisors a MUST. Finding the really good ones is hard. Some might even be looking straight at you and you’re missing them.

They are worth every service fee.

#166 For those about to flop... on 01.10.17 at 12:53 pm

I’ve been toying with the idea of moving to Ontario.

I found a nice affordable bungalow in James st. Long Branch but I might have to re-paint the fence…

M42BC

https://imgur.com/a/N8fDI

#167 Euro observer on 01.10.17 at 12:55 pm

I may have misjudged the comprehension of this audience. — Garth

—————————–
This actually is relatively intelligent/financially literate audience.

The average intelligence out there in the brain frozen crowd is simply scary. How otherwise could we get such an overblown real estate bubble?

With critically and independently thinking citizens?

I don’t think so.

#168 jaybee on 01.10.17 at 1:04 pm

I have a hard time believing that some of these people that write to Garth are real. I can’t believe that anyone is as dumb as the couple renting their house at an $800 per month loss. WTF?

#169 For those about to flop... on 01.10.17 at 1:06 pm

#154 bdy sktn on 01.10.17 at 11:24 am
Flopper nails it. 1.6m cut off for grant in bc.
How’d ya know?

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

I have some contacts.

I also have a t.v and it was on Woeful t.v.

Interesting enough,my in-laws who are the type of people that this grant is supposed to help won’t be able to use it this year as their house assessment went up to 1.8m,remember they have less than 100k in savings.

I suspect with things in decline that the following year they will be eligible for this program.

I am kind of shocked as to the people complaining that prices are going down too slow as they are going down in record numbers…

M42BC

#170 Prince Polo on 01.10.17 at 1:10 pm

Leaving the comfort of his mid-town mansion, trophy wife and Porsche to come here and argue the case for paying a dude like him fees to manage your money. Pffft.

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

Garth, you might be overestimating the readership’s ability to properly gauge sarcasm. What a shame, though. It was pretty funny from where I sit. Have you considered a side gig as Trudeau’s speech-writer?

I was too ashamed to admit he lives in a social housing apartment, drives a beater Kia and rents his family. — Garth

#171 Context on 01.10.17 at 1:16 pm

Question:- Who among you would want a financial advisor driving a pickup truck dressed like a hillbilly from WV with a wife that only her mama could love living in an apartment at Jane and Finch? Now for the initial appointment you had to go and find a donut shop and walk the stairs on Elm Street to be seated with empty beer cans. His first question is “Ok how much loot do you want to invest.”

#172 jay on 01.10.17 at 1:17 pm

B.C government giving millionaires tax break’s to pay property tax and the city of Vancouver is giving free salt. This has to be the best example of being house poor there has ever been . http://bc.ctvnews.ca/b-c-raises-homeowner-grant-to-1-6m-amid-skyrocketing-assessments-1.3234318

#173 Alan on 01.10.17 at 1:30 pm

#73 Kenny on 01.09.17 at 9:36 pm
OMG Kenny, don’t put your money in a whole life policy. There’s not an expert out there who would advocate such a thing. Whole life policies are outrageously expensive, and they’re tax free because they’re basically returning your overpayments to you in the form of “dividends” – money you’ve already paid tax on. Also, when you die, THEY KEEP THE MONEY in your “investment” portion of the policy. STAY AWAY at all costs. If you need life insurance, buy term and invest the rest.

#174 Ace Goodheart on 01.10.17 at 1:38 pm

“Advisors who get people on their feet, help them stay that way and grow some wealth are not the enemy. Even Ryan, who’s now home convalescing. On silk sheets. Pray for him.”

That’s it? A crummy commercial?

https://www.youtube.com/watch?v=6_XSShVAnkY

#175 Smelly Hippie on 01.10.17 at 1:40 pm

DIY is easy, but you have to know what you are doing. Most people think they know, but really, they don’t. Hanging out in the steerage section long enough confirms this fact.

I realized at some point I did not know much about finance, so I had the choice between paying an advisor or educating myself (for real). I chose the latter and enrolled in the CFA program. It is hard work, especially if you are trying to study while working full time. Hard work turned into a wealth of financial knowledge and as a bonus, I got a pretty lucrative gig at an algorithmic prop trading shop.

Now I know…

#176 Roial1 on 01.10.17 at 1:43 pm

You can be sure of one thing. YOU REACHED US.

After seeing you in Parksville and Naniamo, my wife and I liquidated our property and gave the proceeds to a reputable adviser. (they are the ones who brought you out here to speak to the unwashed masses)

HAPPINESS IS!

We have been to Europe, Africa, and soon, (Feb) we go to South America. Whats so special about this? Our portfolio is bigger now than when we started.

End of story.

Thanks Garth.

Retirement is such fun.

#177 boonerator on 01.10.17 at 2:42 pm

If you need more ammo to argue against loved ones who want to get into “revenue” property,
here’s an article on how your government can really screw you.
Your renter sells a bag or two of weed?
Well, you are abetting a crime, civil forfeiture coming your way.

http://news.nationalpost.com/full-comment/john-robson-ontarios-brutal-assault-on-a-good-couple-which-it-never-even-bothered-to-accuse-of-a-crime

#178 Prairieboy43 on 01.10.17 at 2:42 pm

The Management Fee is correct. 1% first Million, drops in percentage after first million. Get a quality advisor. I talk to my investment manager regularly, coffee every couple months. I am approaching fifty, no grey hair yet. That is what I pay him for. All my Brother in laws, younger than me. All are greyhaired (even the thirty two year old). No worries, enjoy my country, and World Class hunting/fishing, hiking and Camping.
PB43

#179 Smoking Man on 01.10.17 at 2:49 pm

Lefties have gone completely insane or Trump.

Ha

https://refusefascism.org/wp-content/uploads/2017-01-02_NO_NYTIMES_AD_960px.jpg

#180 Context on 01.10.17 at 2:54 pm

#173 Alan:- You are correct but the death benefit will be tax free payable to a beneficiary and never to one’s Estate. I recommend 5 year guaranteed renewal with a disability rider because you get the most in the early years for the least cost. The wife is a valuable asset and she too must be insured especially if children are involved. The insurance agent gets little in the form of commissions which is why he wants to sell you whole life, yet will retain residuals of about 2% yearly while the policy is in force, but hoops more during the first few years.

#181 Jame on 01.10.17 at 3:24 pm

Why does this story have no merit? Conflict of Interest Act? Trudeau is making Hillery look cleaner than a shiny nickle. Now we have a new name Crooked Justin.
http://www.cbc.ca/news/politics/ethics-commissioner-trudeau-aga-khan-1.3927846

#182 Ronaldo on 01.10.17 at 3:25 pm

#164 meslippery on 01.10.17 at 12:18 pm

One percent for a year of managed money, fair enough.
But you said 5-6 % to a real estate agent for a weeks work was a good idea…..
—————————————————————-
You can imagine what the lawyer doing up the mortgage papers and doing all the legal work involved in sale of the home must be thinking when he sees a realturd pocketing $50 grand for that weeks work. Makes the 1% or less that Garth charges seem like a pretty good deal N’est-ce pas?

#183 For those about to flop... on 01.10.17 at 3:28 pm

The American passport myth.

Maybe with the Orange Octopus in charge the number of passports could be increasing…

M42BC

https://howmuch.net

#184 Rexx Rock on 01.10.17 at 3:39 pm

Cad looks good,holding strong!!It seems with a great economic outlook the dollar will gain this year.The USD has lost 3 cents in a short time.

#185 Ronaldo on 01.10.17 at 4:13 pm

#165 Somewhere on 01.10.17 at 12:36 pm

Good Financial Advisors a MUST. Finding the really good ones is hard. Some might even be looking straight at you and you’re missing them.

They are worth every service fee.
————————————————————–
I can tell you from experience that when you get to be my age and in a second marriage with children on both sides and substantial assets on each side, the need to have an estate plan properly drawn up and wills, etc. to look after things when one or the other departs this life, it is a must that you have someone that is knowledgeable in all these areas to make sure that things are done up correctly.

Otherwise, you could end up with some very expensive situations when it comes to income taxes and possible family squabbles. It is almost impossible to find someone out there like that. We discovered that the hard way. So many things to think about.

#186 yorkville renter on 01.10.17 at 4:16 pm

#181 Trudeau is making Hillery look cleaner than a shiny nickle. Now we have a new name Crooked Justin.

specifically, with $$$ amounts, what did Hillary do?
now, tell me what JT did, specifically, that is the equivalent?

this is partisan BS

#187 Ronaldo on 01.10.17 at 4:19 pm

#184 Rexx Rock on 01.10.17 at 3:39 pm

Cad looks good,holding strong!!It seems with a great economic outlook the dollar will gain this year.The USD has lost 3 cents in a short time.
————————————————————
I expect it will go a lot higher as a strong USD is not great for their exports and high interest rates will not do their debt any justice. A strong dollar for us of course will not be great for our exports particularly if the agreement on lumber is dismantled.

#188 For those about to flop... on 01.10.17 at 4:20 pm

Here’s another flip that could end in tears.

They bought it in late March for 1.32 close to its now assessed value and are trying to get 1.69 . 9 months later in a market in reverse.

Not much meat left on the bone…

M42BC

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMjdQSg==

#189 Ronaldo on 01.10.17 at 4:24 pm

Here’s one for you Smoking Man. My son just sent me this.

http://notrickszone.com/2017/01/10/pravda-scientists-now-warn-of-a-new-ice-age-as-temperature-plummets-to-80f-in-russia/#sthash.rgL8Tpv7.dpbs

#190 Victoria's Foreign Capital on 01.10.17 at 4:36 pm

VREU:

Speaking of false information, you peddle false information on the impact of foreign buyers. You claim that “only 0.68% of all real estate deals across Greater Victoria went to buyers from Asia.”

As you were warned a year ago, that stat would change significantly with the implementation of the foreign buyer’s tax. The new 2016 stats – you should use them unless you cherry pick – is that:

“The percentage of property transfers involving foreign buyers in Victoria went from 3.9 per cent in June to August, before the tax, to 4.6 per cent in November.”

http://vancouversun.com/news/local-news/victoria-faces-property-shortages-while-more-move-in-for-lifestyle-change

Wow! That is a HUGE jump in the number of foreign buyers especially since the RE industry in Metro held fast to the lie that foreign buyers were nominal – less than 5%. Of course the provincial stats showed them to be as high as 15% in some communities. And is it not convenient that prices jumped 20% in 2016 after the number of foreign buyers went up almost 7 fold?

If the Victoria RE board is like the Metro one, you can be that the 4% figure is a complete fabrication as well as its in their interest not to show a high rate of foreign purchases, lest the foreign buyer’s tax be extended to Victoria.

Also, INVENTORY is the lowest it ever has been. If there is no inventory there are no sales and hence no price changes. You will be waiting for a long time.

You have to get out of your basement and see what is actually going on young lady.

#191 For those about to flop... on 01.10.17 at 4:39 pm

O.k here’s another one to watch where a flipper could get crushed.

They bought it for 1.46m in late July and have it back on the market for 1.648.

This is not high end property,this is your average East Van house.

You can have more fun at the casino…

M42BC

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMjJDMA==

#192 Lorne on 01.10.17 at 4:49 pm

#143 Self-directed

#65 For those about to flop… on 01.09.17 at 9:04 pm

Smartie, they are going to raise the threshold to 1.6 million for the property tax deferral in Vancouver…

M42BC
…………………………………………………
Yup! Christy diddled it again. Gotta keep these millionaires from going under. Clearly they do not want the market to correct. If they didn’t step in… well, we’d have for sale signs going up. Can’t have that, now can we?

http://www.cbc.ca/news/canada/british-columbia/b-c-government-set-to-raise-homeowner-grant-threshold-1.3928365

……….
Really does this make sense? Have you checked out what a 1.5 million dollar house looks like in Vancouver compared to a 1.5 million dollar house in, say, Parksville?

#193 Patiently Waiting on 01.10.17 at 5:10 pm

In the lower mainland it would be a good idea to wait to buy at this stage. There are more price reductions than people are made aware of by their realtors. Many listings are left to expire, or are cancelled and renewed to hide the price reduction. For example: See MLS # 2129174 at 14433 Sunset Lane in White Rock which was left to expire at the original listing price of $2,988,000, and relisted to today at $2,600,000, masking a price reduction of almost $400,000. Realtors will never disclose this information.

#194 TCContrarian on 01.10.17 at 5:37 pm

#140 Capt. Serious on 01.10.17 at 9:22 am

I’ll eventually be interested in an advisor for tax planning and estate planning purposes, but as for asset class allocation and using low cost ETFs for exposure to them, “I got this”, as they say.

+++++–>> 2008-2009 was a pretty good stress test of your investor behaviour. If you stayed invested and backed up the truck with money to buy more equities, you can probably manage your money. If you bailed out, you would be better served working with an advisor.
*********************************************

With you on the first part. On the last bit about ‘staying invested’…not quite.
Best to have been short or out of the market and pick up the spoils when SHTF (or anywhere near it). Not knowledgeable enough to do this back then but I did come across someone who made huge $$’s on the way down (being short), and even more $$$$$$$’s on the way up, on the rebound.
I have done all possible to learn from this dude. Nearly everyone thinks that 2008-9 was one in 100-years event. Well, from what I’ve learnt, I say that was only Part I.

Part II coming up over the next 2-3 years. And it will probably hurt way more people since there are bubbles everywhere (built on debt/leverage).

There are the times when huge fortunes are made, and lost! I prefer the former…

TCC

#195 conan on 01.10.17 at 5:46 pm

#33 Nonplused on 01.09.17 at 7:35 pm

Large account fees are used to pay the admin expenses on the smaller accounts. If you are in the bizz, you need to get some big fish. Brick and mortar, human staff, that costs dollarydoos.

If we change it to your way, there will be no financial advisers. Only the rich will get service. Look at England. Look at Australia.

#196 Prince Polo on 01.11.17 at 8:11 am

I was too ashamed to admit he lives in a social housing apartment, drives a beater Kia and rents his family. — Garth

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

LOL! In that case, you need to start charging waaaaaay more than 1% and recommending contributions to RPF (Ryan’s Porsche Fund) ETF. I hear the MER is a “low” 4.99%

#197 Jgg123 on 01.11.17 at 11:19 am

I swear I have a signed book somewhere from some schlep explaining the benefits of managing my own portfolio.