Old pogey

Enough with the rich people. Let’s talk about Joe & Joan Frontporch.

So 93% of us have not maxed our TFSAs. Last year Canadians withdrew an average of $17,000 from their RRSPs, spending most of it on real estate. Every year those withdrawals increase. The average TFSA, which can hold $52,000, has assets in it worth $11,037. About 80% of that’s in cash or interest-bearing, brain-dead GICs. The average RRSP contribution is less than $3,500. The number of people contributing has fallen 10% in the last five years.

Meanwhile there’s $2 trillion in household debt, 65% of which is in mortgages. Debt is growing faster than savings, by a wide measure. Together we have about $780 billion in retirement savings, or less than half what we owe.

That’s the background for what is to follow. So sit.

Personal finances are a mess, save for real estate appreciation. Millions of Joes and Joans have decided the best plan of action is to concentrate their net worth in a house rather than build liquid assets. The emotional touchstone of this confused nation is to pay off your mortgage as fast as possible. It should be on the coat of arms. Right below the crazed beaver, the horny moose and the pointy thing. Even when mortgages have been in the 2% range, citizens throw all of their cash against the borrowing – which is why TFSAs, RRSPs and other investment accounts are a disaster.

Backstopping this collective insanity is the belief most people have that their government will support them when the thirsty underwear years arrive. In fact T2 has said as much. The feds rolled back the retirement age from 67 to 65 for OAS payments and ‘reformed’ CPP, dramatically hiking premiums that workers and employers pay, for a modestly higher benefit.

But it’s doomed. Today the average CPP payment is $644 and OAS adds $570. That’s $14,500 a year – enough to buy groceries, dog chow, lottery tickets and essential fluids. Not enough to run a house on. Or live, actually. But even that’s not something anyone today 40 or under should count on – despite the CPP bump.

OAS is welfare for old people. It comes from general government revenues and is awarded solely based on age. It’s also hideously expensive – $43 billion a year now, or about 20% of the entire federal budget. By 2030, when the Boomer bulge is sucking it all up, the costs will be above $100 billion. Politicians for years have known this is unsustainable, but have been unable to deal with it because of the above. Without it, Joan & Joe are screwed. But without reform, their kids will be bled dry financing it.

The Harperites tried to fix it (a little) by rolling the retirement age from 65 to 67, delaying the OAS handout. The Trudeauites came in and quickly reversed that. Now T2’s economic think tank, headed by Dominic Barton, has told the Libs they need to rethink that decision, saying both OAS and CPP be “should be recalibrated and increased to meet the Canadian reality of an aging society and a considerably longer life expectancy.”

Just hours after that report hit the media, the PMO sent a junior minister (Jean-Yves Duclos) to say this:

”Reversing the previous government’s arbitrary decision to [raise] the OAS age of eligibility was a commitment we made with the middle class and the most vulnerable Canadians in mind, and it was absolutely the right thing to do. We are not going to change that as we know if we didn’t reverse the previous government’s reform of the age of retirement the most vulnerable Canadian seniors would have lost an amount up to $13,000 per year, and 100,000 seniors would have been in a situation of poverty, raising our senior poverty rate from six to 17 per cent for seniors aged 65 and 66. We are open to encouraging seniors to stay in the work force, if they are able and willing to.”

The social justice warriors among us may think this is good news. It’s not. The senior level of government has again kicked a big, ugly can down the road. You can be sure that the issue will not be addressed until there’s (a) a new Conservative majority government, with cajones or (b) a crisis. The latter is maybe a decade away. The former – who knows?

In any case, it’s reasonable to assume OAS is about to go from universal to voluntary. Already the benefits are clawed back, starting at an income of around $73,000 and is taxed into oblivion by $117,000. Coming soon will be a CPP-like system which promises you even more pogey if you delay taking the money until a later age – perhaps 67 or 70. That won’t do much to make the system any less of a Titanic, but it might slow the flooding a little. Moisters will still have to clean up the mess. If you think taxes suck now, just wait.

Meanwhile Joe and Joan save little, invest less, love their house and expect you to save them. Tell your kids what’s coming.

177 comments ↓

#1 isuckless on 02.07.17 at 4:42 pm

http://www.macleans.ca/news/canada/the-one-group-we-can-teach-our-children-to-loathe/

#2 Wrk.dover on 02.07.17 at 4:55 pm

If you think taxes suck now, just wait.
——————————————————

Cashing out RRSP’s won’t come cheaper than paying the tax on earnings now, if income remains at a similar level in retirement.

I have sung this tune for decades. Now coming true. Oh.

#3 Deplorable Expat on 02.07.17 at 4:58 pm

Ecuador is the place to be..

#4 Econ IW on 02.07.17 at 5:00 pm

https://www12.statcan.gc.ca/census-recensement/2011/dp-pd/pyramid-pyramide/his/index-eng.cfm

#5 Toronto Dweller on 02.07.17 at 5:00 pm

I look at Japan as our future, a declining birth rate, greying of population, but they will fare better because they did what most reasonable folks do they saved and they can live on the largesse for a long time come. Our situation is different as most Boomers who are entering retirement are only house rich. They have boatloads of debt and really haven’t saved for their retirement. Why do you think most of them cling to jobs and do not want to retire?

#6 Doug t on 02.07.17 at 5:01 pm

Between what T2 is doing to Canadians and what Trump is going to do to us — well I think you get the picture

#7 Wrk.dover on 02.07.17 at 5:03 pm

1 isuckless on 02.07.17 at 4:42 pm
http://www.macleans.ca/news/canada/the-one-group-we-can-teach-our-children-to-loathe/

——————————————-

T-1 and Nixon invented deficits for the boomers parents. They are the ones that benefited the most. They also got filthy rich by inflation of the value of their stuff, and huge interest on their dough, while boomers paid off loans.

#8 ummmmm on 02.07.17 at 5:08 pm

I’d like to try and tell people how I tripled my money in 2006 in about a year and a half using insider information the super rich use…. but it might get deleted again like it did on Saturday. It unfortunately was a one time deal for me…because I’m not part of the super rich class.

#9 crossbordershopper on 02.07.17 at 5:22 pm

the gis is what garth really means, the really poor are not the people who get oas, but the gis, which is welfare for seniors, the oas, is a universal payment to anyone who is canadian lived here like 40 years gets a flat cheque, yes 575 month, the gis is a supplement for people with no private pension, no rrsp, no investment, some own a home some dont. but its based on income , and yes clawed back at 117000 and above.
the day will come very soon when trudeau starts mean testing assets for cheques, its the only way. deficits of 4 to 5 billion a month, will be average,
the poor are poor and will suffer, and there are millions and millions of them, most people in canada are quite poor, outside vancouver and toronto real estate schews, millions of poor seniors live on very little in nova scotia, newfoundland, saskatchewan, in the north etc. millions and millions of poor seniors, the future of Canada is not a refugee its a poor senior. confiscation of money for social engineering

No, I mean OAS. Old people pogey. Unsustainable by every measure. — Garth

#10 TRT on 02.07.17 at 5:23 pm

Where did your family come from? — Garth

Did you even read the post? Or just the first couple sentences?

Reread it.

Yup. Every saucy word. — Garth

#11 Mean Gene on 02.07.17 at 5:24 pm

Mr Turner, since OAS is welfare for old people, do you see the current government lowering the claw back (recovery tax) thresholds??

#12 InvestorsFriend on 02.07.17 at 5:30 pm

Old Age Pension Cost

“OAS is welfare for old people. It comes from general government revenues and is awarded solely based on age. It’s also hideously expensive – $43 billion a year now, or about 20% of the entire federal budget.”

****************************************
20% of the entire federal budget is a lot. I wonder what the figure is net of the clawback.

Is it welfare? Well, then simply make more than $117,000 per year in retirement as an individual and you won’t have to be subject to the indignity of collecting any in the net.

It used to be that you had to apply to get the old age pension. Some people presumably did not apply. I understand that it now comes automatically.

#13 Ray Skunk on 02.07.17 at 5:30 pm

Standing by for T2 to cement his earlier decision and keep it at 65.

It’s the Liberal way – especially here in Ontario where Butts et. al. dry ran a lot of the BS you see emanating from Ottawa these days. Remember McGuinty’s “Drummond Report” – loadsa money spent, loadsa recommendations, none of them implemented.

Trudeau’s “evidence-based decision making” doesn’t stand a chance (did it ever?) when there are voting blocs to keep happy.

Proud to say I didn’t vote for this absolute shambles of a government.

#14 Freedom First on 02.07.17 at 5:33 pm

Yes. People have not forgotten the meltdown from the GFC. Fear and greed are very powerful. The wise ones who saw it coming and the people who stayed invested through it all did fine. The others were forever changed.

But it is like the Depression era survivors. Their thinking was altered forever with a following display of this with many bizarre behaviors I witnessed.

#1 isuckless

Macleans article. As a Boomer I was not aware of my immense power throughout my formative years, or that it would increase to where my power as a Boomer would be controlling our entire society to this degree.

#1
Freedom First
Master of Freedomonics

#15 InvestorsFriend on 02.07.17 at 5:37 pm

Are People Entitled to Their Entitlements?

Garth is brave to say that everyone collecting Old Age Pension is getting welfare. That is everyone in the country over 65 who does not make over $117k as an individual.

Most of these people feel 100% entitled to the money. And in fact many of them paid high taxes and effectively paid the Old Age Pensions of their parents, so they have a point. But some got welfare all their lives.

A friend of mine who worked very hard all his life and never made much money just started collecting old age pension. He is still working at age 65 and calls old age pension “money for doing nothing”. He is grateful for it. He will not face clawback, not even close.

#16 InvestorsFriend on 02.07.17 at 5:42 pm

Economic Development And Old Age Pensioners

I would think that the maritimes could benefit by enticing those on pension to sell their Toronto and Vancouver and Alberta homes and move to the maritimes. There they would spend money and spur the economy but would (with rare exception) not work and so the jobs for young people would increase. The bigger their pensions and savings the more attractive they would be to the maritime provinces.

But the maritimes might have to cut their high income tax rates to attract them.

There is a danger they would contribute to higher health costs but the feds will pay for that with higher transfer payments.

What are the maritimes waiting for?

#17 darkselling on 02.07.17 at 5:50 pm

“We are not going to change that as we know if we didn’t reverse the previous government’s reform of the age of retirement the most vulnerable Canadian seniors would have lost an amount up to $13,000 per year”

I like that they assumed every person affected would be a couple, or do widows get to collect the spouses OAS? Did they use the $13,000 figure to be dramatic?

Regardless, it’s $6,840 per person, and if that’s moving someone from ok to poverty they didn’t plan very well.

#18 common sense on 02.07.17 at 6:06 pm

Claw backs to $40,000 and $100,000 net worth…

Over my dead, rotting non rrsp, tfsa body….

I sacrificed, I saved, I planned…the idiots who made $100K a year (and I know many) who BLEW IT will not see a nickel of mine….

To many bad choices and I’m not paying for it. To those born without, natural disabilities, I will give you the world.

Thanks! I feel better now.

#19 Bill Donahoe on 02.07.17 at 6:08 pm

The cycling of money. So if it costs the Feds $43 Billion per year now for the OAS, the boomers get it and they recycle that money into the economy. If the OAS is cut back, does that mean less cycling of money and less jobs? This economics stuff is hard to get. Seems like its six of one, half dozen to the other.

#20 RentYVR on 02.07.17 at 6:12 pm

This is what worries me about keeping all my assets in financial instruments instead of real estate; gov’t can tax away my financial accounts but can’t easily take away my house….

#21 Old Salt on 02.07.17 at 6:13 pm

why someone in retirement making 70k a year needs pogey is beyond me. I earn an average wage for an engineer and would qualify for about 80% of the OAS payment if I were 30 years older. Yet, I live a very good life and am able to build my financial assets at the same time.

The answer is reduce the clawback amount. The current level is absurd.

In respect to those who suffer the worst tax burdens through their careers and subsidize those who can’t be bothered to take care of themselves, the lower clawback amount can be combined with a reinstatement for those with a retirement (non-employment) income above another threshold.

ie, over 40k no OAS, above 120k you get it back.

#22 GFC v2.0 on 02.07.17 at 6:15 pm

“…..You can be sure that the issue will not be addressed until there’s (a) a new Conservative majority government, with cajones or (b) a crisis…..”
_________________________

Conservatives? Seriously? Canadians have short memories…..

71. maintained an empty $180,000 ‘office of a corporate social responsibility counsellor’ with no counsellor,
72. defended $1.044 million Diane Finley misappropriation to a Jewish community centre,
73. blew $1.2 million taxpayer dollars on a religious trip to Israel,
74. defended $13.4 million taxpayer dollars on partisan tax audits of opposition think tanks and charities,
75. blew $24 million taxpayer dollars on advertising for Big Oil,
76. blew $28 million taxpayer dollars on celebrating the war of 1812,
77. blew $50 million taxpayer dollars on John Baird/Tony Clement gazeboes,
78. blew $100 million taxpayer dollars on advertising of non-existent Action Plan programs,
79. blew $750 million of tax-payer dollars for partisan pre-writ program advertising,
80. inflated 2015 election cost to $500 million, extended 2015 election campaigning to 77 days,
81. blew $1.2 billion on a fake lake G20 summit,
82. misplaced $3 billion and couldn’t account for it,
83. blew $4.3 billion taxpayer dollars to farmers completely negating consumer savings from agricultural free markets,
84. lied about $126 billion F-35 fighter jet cost overrun, then cooked two sets of F35 books,
85. bribed Canadians at election time with July lump sum Universal Child Care Benefit (UCCB),
86. …while later clawing back most of the UCCB benefit through income taxes and cancellation of an existing child tax benefit,
87. offered amnesty for wealthy KPMG tax-dodgers while storm-trooping Canadian middle class for back taxes,
88. directed an entire projected budget surplus toward income splitting tax breaks for those who least need it, despite opposition from his own finance minister,
89. promoted doubling the TFSA annual amount to benefit mostly the wealthiest 5% of the country, despite widespread opposition from backbenchers, academics, and his own PBO,
90. yet, incredibly, delayed payouts of Old Age Security to 67 for those who most need it, citing government unafforability,

#23 Alice on 02.07.17 at 6:17 pm

We did it. Real estate sent us to $2 trillion in debt!

https://betterdwelling.com/canadians-consumers-set-a-new-debt-record-over-2-trillion/

#24 Dan.t on 02.07.17 at 6:25 pm

There you go, say it again… Canada has lost it’s way. Plain and simple. 1 goal in life- buy a house- can’t go wrong. Nothing else matters. Brutal. It’s LAW. And Garth, don’t underestimate what got Trump elected.

You saw the comments about Denmark on your last post (videos and such) and people see how things are going in UK, Europe etc. due to immigration and multi cultural dreams- Canadian’s and many western countries might be all sh++ts and giggles in public, but behind closed doors they are worried and rightfully so.

Take away jobs, tax the crap out of people, give preferential treatment (based on political correctness crap) to certain groups then wait and see how people react.

Do a poll in a year and see how many Canadians are happy that T2 got elected. Please! Because right now, it seems all his policies will lead to a world of hurt and the BIGGEST BIG brother state in the world. But as long as housing prices keep rising, it’s all good. Right?

#25 Wrk.dover on 02.07.17 at 6:30 pm

#16 InvestorsFriend on 02.07.17 at 5:42 pm

What are the maritimes waiting for?

—————————————

the people of GTA to wake up, smell the coffee and get a good life. It is here ready for them, but they want yet another 100 grand out of their 40X80 million dollar lot….

#26 AB Boxster on 02.07.17 at 6:34 pm

This is what happens when you continually kick these issues down the road.
The fact that there was a boomer generation and its associated demographic issues should really come as no surprise.

Politicians have know about it for, oh lets see, 60 years.

Social security in the US is in much bigger trouble and has potential to cause big budget problems in the next 10-15 years.

The blog does not even mention the massive issues that will be felt in the health care system as well as caringthe warehousing of old folks.

Politicians have ignored the issues of pension, health care, and elderly care, that will result ffor the boomer demographic issue.

They are all about to bite them in the butt.

#27 HoweStreet.com on 02.07.17 at 6:39 pm

Ross Kay on HoweStreet.com Radio:
Vancouver’s 27% Property Value Loss Historic.
Fort Mac rebuild will skew Edmonton and Calgary real estate values.
http://www.howestreet.com/2017/02/06/vancouvers-27-property-value-loss-historic/

#28 Wrk.dover on 02.07.17 at 6:40 pm

#16 InvestorsFriend on 02.07.17 at 5:42 pm

But the maritimes might have to cut their high income tax rates to attract them.

—————————————–

Nova Scotia has 6400 bridges and 880,000 people, how much lower can we drop our tax rate?

#29 Debtslavecreator on 02.07.17 at 6:43 pm

A debt based Ponzi scheme overlaid on top of a demographic Ponzi scheme . Not only do these vote buying geezers get OAS, they get the age credit and pension credit and split income to effectively lower their tax rate to almost nothing. They paid nothing for their CPP, education, pensions at work (especially the public sector parasites ) and of course the geezers bought their houses for nothing all while electing corrupt politicians to spend and borrow for their benefit and yes the bill is in the mail for us under 40 year olds. Oh and of course while paying the lowest effective tax rates and getting all the freebies most never paid for, they are racking up explosive health care spending helping to keep deficits nice and fat.
That said in the final hours of this collapse their pensions will buy them a fraction of what it does today thanks to the wonderful force called currency depreciation
So enjoy the stolen goodies while you can grandpa because the party is going to end within 5-10 years for you. And yes they will claw back slowly but it will be affecting the young ones. And just wait until they start taxing your primary residence in a few years time
RIP socialism / liberalism
Hurry up and die

#30 Brian Ripley on 02.07.17 at 6:48 pm

The Tyee has an interesting piece on wages and employment standards:
https://thetyee.ca/Opinion/2013/04/24/BC-Employment-Standards/

Opening Paragraph:

B.C. has acquired the dubious “distinction” of being home to Canada’s largest income gap, highest poverty rate, and second highest child poverty rate. It also has greater employment insecurity and lower hourly wages than the national average, even though B.C. is the province with the highest cost of living in Canada.

I have my Absorption Rate charts updated now:
http://www.chpc.biz/mar-moi.html

The Vancouver plot is in free fall at the moment dropping quickly to Calgary levels and yet Alberta earnings are still 21% above BC’s even though AB’s earnings are 5% below their Oct 2014 peak.

Cash may not be king (negative interest rates), but cash flow (the ability to turn a liability into an asset) still is.

#31 Bank of Millenial on 02.07.17 at 6:51 pm

Do you miss this yet Garth?

Standing Committee Hearing on Finance
https://www.youtube.com/watch?v=JtIu5JNsvpE&

#32 I Don't Know on 02.07.17 at 7:00 pm

“But it’s doomed.” – Garth

———————————————

No, it’s not. Neither is TO RE. No matter for long, or how many the doomers say it is.

#33 Skiffy on 02.07.17 at 7:01 pm

According to Kevin O’Leary the state of real estate is the fault of Trudeau:

“The housing market is like any other asset class. It generally has volatility in its pricing based on supply and demand. The risk for all of us now as we invest in housing is that this market has not corrected in 23 years which is an unprecedented frame of time in the Canadian economy… It’s simply not a good time to buy a house, and the market dictates that–not the government. It always ends badly when the government tries to manipulate the market. If people lose money on their property in next few years there’s only one man to blame…Trudeau, because he tried to manipulate the market!

What I can promise is that my focus will be to help grow the economy and Canada’s job opportunities so that Canadians have more money to invest in what they choose.”

https://www.reddit.com/r/canada/comments/5smi2e/im_kevin_oleary_and_im_running_for_leadership_of/ddg5i9a/

#34 toronto1 on 02.07.17 at 7:08 pm

I once heard a very smart pension fund actuary tell me that all pension plans are the ultimate ponzi scheme- he was right.

In order to maintain what is current today- people younger have to pay- thats good until you have a deviation in the population cycle like you do with the boomers– much more of them then the younger generation. Coupled with now almost a decade of non existent interest rate growth and you get the picture.

most private pensions “assume” a growth rate of 8% annual- compounded to keep existing pensions solvent and payable– well you only get 6% on year the next you need 12% just to break even but you only get 5% now you need 19% the third year to break even- so on and so forth– a couple bad years and there is no way to sustain those payments.

No govt will ever increase the retirement age- thats political suicide and will result in loosing the next election. The aging boomer demographic is the largest, most reliable voting bloc, offend them and there goes your govt.

#35 jess on 02.07.17 at 7:09 pm

Bermuda’s Madoff connection
Jonathan Kent
Published Jul 6, 2011 at 8:44 am (Updated Jul 6, 2011 at 8:41 am)
http://www.royalgazette.com/article/20110706/BUSINESS02/707069936

===
https://www.theguardian.com/business/2017/feb/06/uk-tax-haven-bermuda-financial-secrecy-offshore-companies

bermuda threatens independence
Cross-party group backs amendment to criminal finances bill making overseas territories introduce public registers

wiped out 8b.
https://www.ft.com/content/543f2686-b2f7-11e6-a37c-f4a01f1b0fa1

FCA issues warning over poor DB pension transfer advice

By Kirsten Hastings

Added 7th February 2017

The UK’s Financial Conduct Authority has issued a warning notice to an unnamed individual for poor advice given to more than 700 members of defined benefit (DB) schemes that left them at “serious risk of unsuitable outcomes”.
– See more at: http://www.international-adviser.com/news/1034102/fca-issues-warning-poor-db-pension-transfer-advice#sthash.maxTftbA.dpuf

#36 BC_Doc on 02.07.17 at 7:09 pm

People are living longer these days thanks, in part, to those hard working medical professionals whom the haters among us want to see taxed into oblivion. How awesome is that?

Pushing back retirement age to fund all these people with now increased life expectancies sounds like a common sense idea. The problem, though, is the “D word”– lots of these folks end up disabled even before they hit age 65. While those of us who listened to our mothers, stayed in school, and were lucky enough to make it into a white collar profession like medicine or financial planning can generally keep pushing the boulder up the hill for longer, try telling that to a plumber, carpenter, or dry-waller whose hips, knees, shoulders, and backs start packing it in in their 50s or sooner. Forcing the blue-collar folks to keep working after a certain age often just isn’t going to happen.

#37 Dean on 02.07.17 at 7:10 pm

Let me remind you that the last Conservative Govt with “cahones” came up with the 40 year amortization brainchild which partly created the housing bubble. They also racked up the biggest deficit in history, and bet the farm on big oil with massive subisdies and tax breaks. Now with oil prices falling through the floor and a glut on the market we are in really good shape. Thanks Stephen Harper.

#38 Bat Flipper on 02.07.17 at 7:12 pm

Before my power goes out, I hope I get to post in time.

Well, with the OAS being replaced by the GIS likely sooner than later, we better hope we find a way to generate a ton of tax soon… Oh yeah, tax the rich apparently. I guess we are defending the middle class by destroying all classes. Maybe we will all be equally poor in a society that does nothing to encourage commerce. The incentives of taking a risk and starting a business are quickly vanishing….

http://www.cbc.ca/news/canada/ottawa/5-things-basic-income-consultation-ottawa-january-24-1.3948032

#39 Dean on 02.07.17 at 7:12 pm

Sure, let’s raise the minimum age for pension to 70 years, but then how many 65 year olds would you hire? It is even dicey trying to stay employed or land a good paying gig in your mid 50s.

#40 the gig is up on 02.07.17 at 7:13 pm

It’s amusing to read the discussions about what type of retirement fund will be paying who in a couple decades…

There’s nothing left when the big reset button has been hit. All governments and central banks are at wits end. The programs were never designed to feed a population with increased life expectancy and higher medical costs. Entitlement and huge public service payments were not a factor either.

Maybe we’re not going to suffer like the Greeks but to think that the game will go on and there’s a full pension package in a few years is dreaming. The pots are either empty or the currency is worthless. Inflation will eat it all up.

Prepare accordingly.

#41 Nonplused on 02.07.17 at 7:18 pm

OAS is just one of many promises we’ve made to ourselves we won’t be able to keep, at least not in the way we imagined we would. There are plenty of under-funded government pensions to add to the mix as well.

To fund everything we’ve promised ourselves would require tax rates so high that there would be little incentive to work for most people, or government borrowing rates so high the dollar would come under extreme pressure. Since neither of those options is palatable, the can will be kicked down the road until something breaks. It will break slowly at first, and then all at once.

What happens when things start to break I don’t know, but they seem to be doing test runs in Greece, Italy and Spain and I don’t like the looks of it.

We already know from those test runs that raising taxes doesn’t work because there simply isn’t enough money in the non-government side of the economy to match the scale of the problem. We know you can’t cut the benefits or you get riots and regime change. We know economic growth isn’t high enough to stay ahead of the problem a it was originally assumed it would be. (And we know the young will be increasingly competing with machines for jobs, further eroding the tax base and increasing the number of people dependent on government support.)

So somewhere down the road the SHTF moment will happen and great societal change will occur. What the world will look like after I don’t know but I’ll be watching Europe to get an idea.

#42 Goldie on 02.07.17 at 7:19 pm

On today’s topic of taxes, I just wanted to share with you all that here in the metro Vancouver area, we had a cold January. My natural gas bill for the month was the highest that it’s been in years. However, of the entire amount of the bill, 21% of the cost was the carbon tax. A 21% tax. If you live in an area that is about to be hit with a carbon tax, get ready to pay! (Including GST my total taxes on the bill were 26%) thanks libs.

#43 Blaine Moleland on 02.07.17 at 7:26 pm

@Goldie But you are doing your part for the climate change no?

#44 Keith on 02.07.17 at 7:31 pm

I worked for a large company for 28 years. A DC group RRSP was introduced after some years, probably the most miserly one in Canada. It was one percent from the employer after three years service, two percent after four maxing at a staggering three percent after five yeas. Employee contribution was minimum one percent, up to whatever you wanted.

I was surprised after some years that some of my colleagues hadn’t bothered to enrol in the scheme. My thought was that it was free money. I had no idea that it was a significant percentage of people.

http://business.financialpost.com/personal-finance/retirement/leaving-money-on-the-table-how-many-canadians-arent-taking-advantage-of-defined-contribution-pension

So I hear from people all the time that we don’t need government to take care of us, better to leave tax dollars in the hands of ordinary people because they are so much better at taking care of it.

No they aren’t. Forget the fact that people who are too stupid to fill out a form to get free money would probably be pretty lousy at making investment decisions on their retirement money – ponder that for a moment. THEY PASS UP FREE MONEY! CPP has 7% + rate of return, 0.35% costs and access to private investments. Raise the contributions, 15% each employee and employer. Crank up the payouts. Time to give up on amateur investors taking care of their own retirement, or in the hands of advisors with 2.5% mer.
People need to be saved from themselves. Yes they do. We will be paying taxes for impoverished seniors like crazy.

#45 Darryl on 02.07.17 at 7:34 pm

So the people that paid taxes all their life should feel bad for collecting what they paid for ?
No . Instead we should pay it towards some strangers children instead . Who’s parents will just use it for a better SS fridge or a bigger TV anyways

#46 TEMPLE on 02.07.17 at 7:35 pm

Maybe we’d have more money for CPP and OAS if conservative governments didn’t keep on giving their rich friends and corporate benefactors tax breaks?

What Con governments? — Garth

#47 for those about to jump on 02.07.17 at 7:48 pm

All the retirement talk is good. Just not the most important aspect of our imminent national depressions.

I spent my entire day (not working) checking out property prices down the road in Vancouver and despite my observing a new fence being built and even painted a property that I have been watching since 20011 has only increase in value by $267,921.49!

Those lying realtors!

Will post more tomorrow because tonight I’m camping out to see how many cars drive by a new listing on mls.

This is important work and I must get this information out to the people!

#48 S.Bby on 02.07.17 at 7:49 pm

Raising retirement age ‘inevitable,’ UBC professor says.

http://www.cbc.ca/news/canada/british-columbia/raising-retirement-age-inevitable-ubc-professor-says-1.3970230?cmp=rss

#49 TRT on 02.07.17 at 7:50 pm

Yup. Every saucy word. — Garth

My heart lies in helping individuals via societal change. Sorry that not everyone sees it that way. I wholeheartedly disagree with the greedy ideal of maximizing individual profits even at the sake of the well being of others or even wilfully bending the truth.

No profits. No societal welfare. — Garth

#50 A Girl Who Invests on 02.07.17 at 7:53 pm

What are your thoughts on universal basic income which seems to be popping up a lot lately? http://www.huffingtonpost.ca/2017/02/06/basic-income-canada_n_14633042.html

#51 Ret on 02.07.17 at 7:55 pm

I’m entitled to my entitlements. I’m not selfish. I’m just thinking like any politician or civil servant across the land.

Giving back money to any level of government is usually a bad idea resulting in another useless social program.

By the way, does anyone know into which black hole in Ottawa the carbon tax money will go?

#52 bdwy sktrn on 02.07.17 at 7:56 pm

#25 Wrk.dover on 02.07.17 at 6:30 pm
#16 InvestorsFriend on 02.07.17 at 5:42 pm

What are the maritimes waiting for?

—————————————

the people of GTA to wake up, smell the coffee and get a good life. It is here ready for them, but they want yet another 100 grand out of their 40X80 million dollar lot….

————————–
why go all the way out there?

ONT has many more small towns with a lower cost of living – leamington is as cheap, way better weather, not a 2.5 hr flight to a real city, not stuck out in the middle of nowhere.

#53 Numbers Guy on 02.07.17 at 7:59 pm

Garth: Meanwhile Joe and Joan save little, invest less, love their house and expect you to save them. Tell your kids what’s coming.
——–

Oohh.., scary stuff.

Unfortunately, the article you wrote doesn’t explain what you think is “coming”. But wait a second,…Here’s a recent national post article that shows some real numbers backing up their headline “Massive drop in housing prices would still leave Canadian households with more equity than debt”

http://business.financialpost.com/personal-finance/mortgages-real-estate/even-a-massive-drop-in-housing-prices-would-leave-the-average-canadian-household-with-more-equity-than-debt

“the average Canadian household had a net worth of $726,000 which includes $263,000 in home equity. The numbers are based on Sept. 30, 2016 data. “

#54 More Buffettology on 02.07.17 at 8:06 pm

“Risk comes from not knowing what you’re doing.”

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

“Four or five times during their lifetimes, [investors will] see incredible opportunities probably in equity markets . . . [they] have to have the mental fortitude to jump in when most are jumping out.”

“Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation.”

“There seems to be some perverse human characteristic that likes to make easy things difficult.”

“I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of Congress are ineligible for reelection.”

“The most common cause of low prices is pessimism – some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer. None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What’s required is thinking rather than polling. Unfortunately, Bertrand Russell’s observation about life in general applies with unusual force in the financial world: ‘Most men would rather die than think. Many do.'”

#55 TRT on 02.07.17 at 8:08 pm

#29 debtslavecreator:

An economic attack on the 65+ crowd?

Agism?

I don’t understand why there should be an “age credit” on taxes which effectively lowers taxes of seniors at the expense of the younger workers. That is Agism, if something like that exists.

And restaurant discounts for seniors who eat the same amount as me or discounted movie tickets for seniors… don’t get me started on this agism thing.

#56 Todd on 02.07.17 at 8:10 pm

Marge Simpson: Where did you get all that money?

Abe Simpson: The government. I didn’t earn it, I don’t need it, but if they miss one payment I’ll raise hell.

#57 GFC v2.0 on 02.07.17 at 8:10 pm

“….The average TFSA, which can hold $52,000, has assets in it worth $11,037. About 80% of that’s in cash or interest-bearing, brain-dead GICs……”
_________________________

Not a bad strategy, really, considering the Twit(ter)with the tiny hands and the attention span of a seedless watermelon has now prostituted himself to a bunch of ‘advisors’ from the very same criminal organizations (Goldman-Sachs, JP Morgan, etc.) who collectively blew the world’s financial brains out in 2008.

Couple that with an increasing build up of whacked nations unseen since WW2 (Russia, China, Iran, North Korea, etc.) run by narcissistic nutbars who enjoy unzipping their fly’s in some kind of twisted game of missile envy, I can’t see myself, approaching retirement in a few years, getting out of cash anytime soon.

#58 Shortymac on 02.07.17 at 8:13 pm

Well, everyone, I finally have a bit of good news! My husband got a new job that’s only 15 mins away and for 20k more than he was making now!

I’m so happy, I wasn’t expecting this!

My home country might be burning under an Orange Cheeto who doesn’t read what he signs, but hubby and I might just make it after all!

#59 Bytor the Snow Dog on 02.07.17 at 8:19 pm

I sense a disturbance in the force. Much anger in the blog today.

#60 Linda on 02.07.17 at 8:22 pm

Regarding OAS, the last time I looked you DO have to apply – it isn’t ‘automatic’ upon your 65th BD. I fully expect OAS to eventually only go to the lowest income Canadians (vide GIS). It is paid out of general revenues – tax dollars – but isn’t a payroll tax like CPP (which is a DB pension plan, however small the actual payout might be). OAS does have rules. Only those who have lived in Canada a full 40 years after the age of 18 will receive ‘full’ OAS. Frankly, if you require OAS to live comfortably in retirement then you have bigger problems than the age of eligibility. Yes, it counts as taxable income. I would not be shocked if some people choose not to apply because if they did receive it they would pay more in taxes than the extra income was worth.

Regarding retirement age & how long you ‘should’ work – prior to the 2008 financial crisis, Freedom 55 was a catch phrase & those who did retire ‘early’ were seen as having won the (rat) race. Now that meme has turned on its head; it is almost socially unacceptable to retire ‘early’ – those who do fall under suspicion of having somehow ‘cheated’ everyone else. Don’t kid yourselves; this sudden ‘work until you are 70, 71, 75 etc.’ thing is a panic response to a lot of powerful groups who have finally come to realize just how much of an impact the retirement of millions of Canadians will be. 9 million Boomers were born; even if there are only 8 million left after all these decades that is still 25% of Canada’s current population. By 2031 even the youngest Boomer w/b age 65. Math does not lie. Even a CEO brings home less take home pay on a pension than they do while working. If 8 million people are retirees & are living on an average income of $30,000 per year, the tax revenue hit will be extreme. Even if taxes are increased to say 25%, 25% of $30,000 pension income is still a lot less tax revenue than 20.5% on $60,000 working income. That is why there is such a push to keep people working. It really doesn’t have anything to do with living longer, except as a byproduct of the fact that 25 or 30 years at a $30,000 income is going to generate one heck of a lot less tax revenue.

#61 Metaxa on 02.07.17 at 8:25 pm

As a 71 year old guy who didn’t take CPP until I was 70…no it didn’t start automatically at 65, I had to apply.

Yes, my monthly payment increased significantly.
Yes, I get OAS.
I couldn’t tell you if I get clawed back or not…I have people who look after stuff like that…I live.

If all you angry people are going to round all us old rich guys up and ship us off to join the Doctors and whoever you are mad at next week could you make this re-education camp in the south of Portugal please?

Now…Garth: this is two in a row that are just chumming the waters, looking to get a rise from rabble. How about actually putting that intellect back to work and give us a couple laying out how these angry readers can actually do something about their situation.
Blog one, how to construct your personal financial life such that you minimize government interference and maximize personal happiness.
Blog two: how to communicate and to who, your needs and wants politically so as to have maximum chance of being included into the thoughts and processes of the political mavens.

I mean your weekend guest bloggers are getting heartfelt and profound praise on their contributions, all you are getting is angry men with little else to contribute beyond the anger.

now, excuse me but someone just stopped by to drop off a pail that appears to contain 4 very large Dungeness crabs. The agony…I’ll have to go out and buy wine.

#62 conan on 02.07.17 at 8:27 pm

#22 GFC v2.0 on 02.07.17 at 6:15 pm

Re: Conservatives with a majority

Let’s catch some flak. but it has to be said. I completely agree with you. I will eat my cell phone if the Cons get a majority in the next 15 years.

Harper was brutal, his government was brutal, his historical footprint is going to be laughed at.

#63 2017 on 02.07.17 at 8:28 pm

Canadian deplorable experience

https://www.youtube.com/watch?v=5qmCTOc49aw

#64 Darryl on 02.07.17 at 8:33 pm

Dropped by a Mississauga listing today and after viewing it the Agent said “we will have open house Saturday and Sunday and will accept offers on Monday . No exceptions ”

I told the agent that I may look at it later in the week if it hasn’t been scooped up and that I wont participate in multiple offer schemes.

She looked a bit pissed off and told me that I would have to if I wanted to buy a house in Mississauga.

After telling her about several recent general area houses where the tactic didn’t work I left .

Nice house nice area at reasonable offer so I’m sure someone will bite . Not me though .

#65 Andrew Woburn on 02.07.17 at 8:39 pm

#29 Debtslavecreator on 02.07.17 at 6:43 pm

So enjoy the stolen goodies while you can grandpa because the party is going to end within 5-10 years for you. And yes they will claw back slowly but it will be affecting the young ones. And just wait until they start taxing your primary residence in a few years time
RIP socialism / liberalism
Hurry up and die
==================

We all think old people are useless when we are thirty. Then we become one. It’s amazing how fast it happens.

Of course I realize, you are different and you will never be like “them”. You will still be vital, energetic and sharp of brain because of healthy living, yogurt and sprouts.

We all thought that, too.

#66 bigtowne on 02.07.17 at 8:40 pm

As part of the “loathsome group” prescribed by Scott Gilmore of this month’s Macleans magazine I had no idea giving to charity often; caring about others without bias; giving to food banks; giving continuously to my single mother daughter; encouraging my grandkids to study; work; pray and giving them cash to pay their tuition was creating HAVOC in CANADIAN SOCIETY.

Thank-you Mr. Gilmore I will stop being part of that detestable group.

#67 Nemesis on 02.07.17 at 8:41 pm

“No profits. No societal welfare.” — GartoloMaximo

#PogeyMischief,Or… #Profits?WhatProfits?… #Canada’sBiggestWelfareQueens…

[FP] – Canadians pay hefty $684B bill in business subsidies over 30 years, study shows

OTTAWA — Doling out hundreds of billions of taxpayers’ money to help protect and nurture the private sector has been a costly practice — some would call it fiscal folly — for Canadian governments.

Over a period of nearly 30 years, federal, provincial and local authorities together spent almost $684-billion on subsidies…

http://business.financialpost.com/news/economy/canadians-pay-hefty-684b-bill-in-business-subsidies-over-20-years-study-shows

#68 JSS on 02.07.17 at 8:42 pm

Higher taxation of dividends is next. Everything is on the table. Count on it to become an issue into the future.

#69 White Crock BC on 02.07.17 at 8:47 pm

I’d be very curious to know how much of that $43B is either clawed back, or comes back by way of income tax.

#70 Kick out the jams on 02.07.17 at 8:50 pm

my TSFA is hurting a little bit. about fully maxed but a couple bad gambles so in the red. oh well, i think this year is my year.

Smoking Man – give this a listen: https://www.youtube.com/watch?v=nLcUR7iBWqE

something tells me it will speak to you.

#71 joblo on 02.07.17 at 8:51 pm

So thirsty underwear crowd moves. No big deal.
Let the youngins slave and freeze on the tundra.
Kanaduh for fogeys is done.
Plenty of inexpensive warm places on this planet.
Get planning and get out.

#72 crowdedelevatorfartz on 02.07.17 at 8:52 pm

Retirement?
BWAHAHAHA.
Come ON people.
Been to a WalMart lately?
Those ‘greeters” at the door arent there because they’re lonely.
Low skill low paying “McJobs” await those who dont prepare….
Speaking of “McJobs” even that term is obsolete
Seems McDonalds has clued in and replaced “The Working Dead” with touch screens in a big way.
Safeway has touch screens and scanners as well.
Robots dont go on strike.
BC Liquor Stores take note.

#73 Tony on 02.07.17 at 8:58 pm

Canada will end up like the American middle class. Working until you die as property values will plunge in the future thanks to zero buyers and a falling birthrate. As Garth said most saved nothing and will end up with nothing. Like I’ve always said on this blog the average person dies broke mostly because they haven’t a clue what they’re doing and the law of probability catches up with them sooner or later. Case in point all the home owner in Vancouver and Toronto. C’est la vie it was nice while it lasted.

#74 Pete from St. Cesaire on 02.07.17 at 9:02 pm

By the way, does anyone know into which black hole in Ottawa the carbon tax money will go?
————————————————–
It will go where all taxes go; back (as an interest payment) to the hidden powers that creates all of the worlds money out of thin air in the first place. Think about your income taxes, they don’t go to the Canadian Government, they are paid to: The Receiver General FOR Canada (not OF Canada, FOR Canada). If you think that your taxes go towards social programs, you have a lot to learn. Your taxes just pay back some of the interest on the money that was created out of thin air.

#75 DT on 02.07.17 at 9:08 pm

Wow 20% of the budget on OAS is supposed to make us feel guilty? Or appreciative?

The cost of civil servant and politician salaries and benefits including pensions is more than that 20%. I just checked StatsCan.

Airlines can check in thousands of passengers an hour, reducing costs by decreasing labor costs. Government needs reforming. Period. We cannot afford this largesse on useless eaters in government much longer. The cost of all the MPs and Senators is excessive.

At this point everyone I ask around me would rather volunteer 10hrs a month every second year than pay the portion of taxes that go to the salaries and benefits of useless eaters.

The problem is actually worse than we think. Useless eaters breed more useless eaters and indoctrinate them into memes like capitalism is bad and the government is always right.

I will vote O’Leary (if on the ticket) or any politician with success in business. A house cleaning needs to occur. If government was so good they would pay dividends on the money (taxes) we invest with them.

Until politicians understand the difference between money and capital there is no place for them in a world where half the jobs of today will be done by computers in 25yrs or less.

‘Useless eaters’ like soldiers, nurses, coast guard, RCMP, scientists, food safety staff and the people who send you the OAS? Puerile. — Garth

#76 Demographics on 02.07.17 at 9:12 pm

Interesting to see that something like the Ontario teachers pension had 13 pensioners over the age of 100, 27 years ago. Two years ago, they had 10 times that amount – 130.

https://www.otpp.com/documents/10179/757926/-/58def2c7-2771-4132-ad26-93a549eef033/Annual%20Report.pdf

#77 Tony on 02.07.17 at 9:13 pm

Re: #61 Metaxa on 02.07.17 at 8:25 pm

The point is the OAS plan will likely turn insolvent so you want to take it as soon as possible while the money is there.

#78 prairie person on 02.07.17 at 9:23 pm

OAS? It’s all clawed back, as it should be. The claw back probably should start sooner. CPP is different. I and my employer paid for that. People with less should get more. There should also be a means test. My parents were sitting on assets of around a million dollars. No pensions but they were comfortable. They needed nothing. There needs to be a cultural change with regard to employment. Yes, people shouldn’t be taking their pensions until 67, admit Harper was right, but also pass laws that keep employers from firing people simply because they want to replace them with younger employees that they can pay less. Shift one part, you have to shift other parts.

#79 );-) aka Devil's Advocate on 02.07.17 at 9:28 pm

I’m gonna stay young at heart and work until the day I die. My needs are simple and I’ve got more than I need.
It’s all life.

#80 conan on 02.07.17 at 9:28 pm

“By the way, does anyone know into which black hole in Ottawa the carbon tax money will go?”

My guess is a minimum income program. 40 % percent job elimination due to robots/AI is a real threat.

Carbon taxes stay in the Province.

#81 Add to that few have an RPP on 02.07.17 at 9:42 pm

32.4% of the labor force has an RPP as of 2014.

How will the other 67.6% get by on CPP/OAS?

I guess, continue working.

Truthful, still, depressing stats today Garth.

#82 Ret on 02.07.17 at 9:47 pm

Great plan T2. Keep the old folks working until they drop, wind down the OAS to take away any chance of dignity for tens of thousands of seniors, and use the extra money to buy votes from special interest groups to keep the Liberal dynasty in power forever.

It might work T2, but you will first have to ban all sales in Canada of George Orwell’s book, Animal Farm. (Amazon sales are up biggly.)

http://ew.com/article/2013/06/11/george-orwell-1984-amazon-sales/

#83 cramar on 02.07.17 at 9:58 pm

#72 crowdedelevatorfartz on 02.07.17 at 8:52 pm
Retirement?
BWAHAHAHA.
Come ON people.
Been to a WalMart lately?
Those ‘greeters” at the door arent there because they’re lonely.
Low skill low paying “McJobs” await those who dont prepare….
Speaking of “McJobs” even that term is obsolete
Seems McDonalds has clued in and replaced “The Working Dead” with touch screens in a big way.
Safeway has touch screens and scanners as well.
Robots dont go on strike.
BC Liquor Stores take note.

————

Not all! I know of a wife who went back to work part time as a casher at a food supermarket solely because she is retired and bored. They have lots of money in the bank and income, so she definitely does not need to work for financial reasons. Solely for something to do!

I can never understand these retirement types who have no purpose in their lives and need something to occupy their time.

#84 T-Rev on 02.07.17 at 10:01 pm

You’re right Gartho old buddy- I’m capable of self directed investing, manage my own kids’ RESP through a simple balanced portfolio of low MER index funds and bond funds, but when it comes to investing outside the RESP, I’m terrified of the markets. It’s lunacy- I’ve made a steady, low volatility return of 6-10% over the last seven years in that fund following what is essentially a “couch potatoe” method, but every time I try to work up the ‘ol nerve to put something in my TFSA I panic and chuck it against the mortgage instead. I try and justify this by telling myself it’s the only guaranteed return out there, and it’s tax free, but the truth is all the science and my own experience says mathematically speaking I’m making the wrong call, but I can’t seem to help myself. I’ve put just under $200k against a 2.54% in the last six weeks. STUPID!!! But I can’t seem to gather the kohonez to do it differently. I have made, and own, some riskier investments- land development (worked out good), tech company (bankrupt), a rental condo (cash flow positive after all expenses, vacancy, and contingency!), online retail biz (jury’s still out as it’s pretty new) and so I further justify my mortgage prepayments as the “fixed” side of my wild adventures, but I know it’s all cognitive dissonance. What is wrong with me?

#85 Metaxa on 02.07.17 at 10:02 pm

#58 Shortymac:
Could not be happier for you and yours.
The reality is you can spend less than you earn or earn more than you spend to get ahead. Sounds like you have a perfect opportunity to both spend less and earn more if you can contain the lifestyle creep.

#77 Tony:
I made way more in those 5 years than OAS would have given me. Anyway, I doubt OAS will collapse as it is out of revenue. CPP is a stand alone fund afaik but my understanding from my financial people is our CPP is in really good shape. Not at all like SS in the USA for instance.

#86 Hotdogs from Heaven on 02.07.17 at 10:02 pm

#78 prairie person on 02.07.17 at 9:23 pm

Yes, people shouldn’t be taking their pensions until 67, admit Harper was right, but also pass laws that keep employers from firing people simply because they want to replace them with younger employees that they can pay less. Shift one part, you have to shift other parts.
—————————————————-
Younger employees? How about foreign employees.

I work for CGI which has made the laying off of middle aged Canadians and their replacement by very cheap workers from India their business model. These workers are churned out from diploma mills with none of the skill, knowledge or experience of the Canadians they replace.

This is also the model for Accenture, Tata consulting, Infosys, IBM consulting as well as all of Canada’s banks, life insurers, auto insurers, property insurers, credit unions, etc…

How does T2 expect people to work until their 70’s when he allows them to be layed off like this in their 50’s.

#87 cramar on 02.07.17 at 10:03 pm

Saw a piece on the Global news that T2’s pretty face is so well known in the U.S. that 40% of Americans would rather have him as POTUS than Donald Trump!

I say we let the Americans have T2, and they can keep Trump as well. Great deal!

#88 Hotdogs from Heaven on 02.07.17 at 10:04 pm

#80 conan on 02.07.17 at 9:28 pm

“By the way, does anyone know into which black hole in Ottawa the carbon tax money will go?”

My guess is a minimum income program. 40 % percent job elimination due to robots/AI is a real threat.

Carbon taxes stay in the Province.
————————————————–
Yes, but not so for Ontario’s Cap and Trade system. The credits that Ontarians and Ontario companies must buy are coming from Quebec and California. In fact California firms will benefit by billions of dollars at Ontario’s expense over the next few years.

#89 Andrew Woburn on 02.07.17 at 10:07 pm

The idea that we can solve pension issues by delaying retirement is nonsense.It might help keep a little more cash in the pot but it overlooks two important points.

First, despite the feel-good bank retirement ads which pretend that glossy fifty year olds with amazing dental work are really seniors, and despite the advances in medical care, most people start tiring in their early sixties and are not ready to slog off to work every day at 70, especially if they have had life-long physical jobs. We live longer but 75 is not the new 65. We don’t really extend our youth, we just survive more infirmities.

Second, it is no doubt very satisfying to blame “greedy” boomers and their “corrupt” politicians but boomers were in the same age range when the system was laid down in the 60’s and 70’s as the complaining Millennials are now and had just as much control.

The systems developed then were entirely reasonable. The problems we face today were completely unthinkable because nobody could foresee the impact of technology on employment and longevity.

Whether or not the “useless” boomers crash the system, the problems will continue to worsen after they are gone. There will be less and less jobs and more and more seniors including the young wailers on this blog. Instead of fiddling with retirement ages, we need to confront the fact that there will never again be any reasonable ratio of workers to retirees.

The economy is not shrinking, just the share that accrues to labour. People truly believe the problem is self-limiting because the unemployed won’t be able to buy what the economy produces. However, in a manual economy, unemployment once meant that the supply of goods was reduced. In an automated economy it just means the goods are being produced anyway but without you. The value of the output is still there but gets shared among a smaller group of citizens who still have decent jobs. We already have the example of Brazil and India which have thriving economies and growing middle classes but millions of citizens who are not in the economy and probably never will be. This process is well under way in North America and got Trump elected.

If there are going to be pensions (or guaranteed incomes) in the future they will have to come from the product of automation. This is the real issue today, not the age of retirement.

#90 Lefty on 02.07.17 at 10:15 pm

I received an e-mail alert today from Grant Thornton, one of the Big 4 global accounting firms. They are advising their clients that Morneau in his March Budget will almost certainly increase capital gains tax base from 50% to either 66.66% or 75%.

At current top marginal rates they calculate that capital disposal income tax rates would, at Ontario’s highest marginal rates, be 35.69% if they go to 66.66% and 40.15% at the 75% level. Highest marginal income tax rate in Ontario is 53.3%.

Surely govt. must look at the monumental and almost completely untaxed activities of flipping, speculation, and cash rentals that have fueled this grotesque bubble due to CRA’s inability to police the residential capital gains exemption. Surely they should not be able to tax to death every other type of investment activity while leaving the non-productive real estate sector to grow to the moon.

#91 WUL on 02.07.17 at 10:17 pm

Some five years ago I started to receive pension monies from two stints in previous gigs. Then about two years ago I received either an email or phone call, I forget which, to find out if I was still alive.

I have set up an automatic email response and a voicemail message which ends “If this is Such and Such Pension Plan, I am still alive. Reports of my death are greatly exaggerated.”

Automatic deposits to accounts in the Caymans in perpetuity.

#92 Stock Picker on 02.07.17 at 10:24 pm

“Floating ” an increase in capital gains tax would be the final nail in the coffin for most seniors who’ve seen the rape of their life savings by the governments self serving ZIRP. Seniors have no more blood to give…read the community blogs where real people express the real misery that has befallen them under this onerous regime of increased taxes and zero return on investment after almost two decades of consumer inflation at 20 % pa. Cat food is a luxury item to most seniors who haven’t eaten meat in years. Seniors have been bled dry….they are the fastest growing population at food banks….seniors are binning , freezing in the dark. Another hit from the Liberals against a group of defenceless senior citizens is brutal granny bashing at its worst. Junior should be ashamed of himself….but he’s too busy floating on his petard with the likes of Rasputin Gerald Butts whispering in his ear. Misery awaits anyone who follows the siren song of the Liberal Party. Be silent and you’re next.

#93 Smoking Man on 02.07.17 at 10:28 pm

Got to say with so many people agreing with me these days. It’s not fun posting any more. Gone the rabid insults, stimulus fir the next epic post of a great writer.

I thinking of burning my MAGA red hat and trade it for a vagina out fit for the next woman’s march.

Can some one please insult me. Or I’m switching lefty loon.

#94 Paul on 02.07.17 at 10:35 pm

As I read your post Garth and reached the end.I saw the photo from yesterday for the 69th time is there any way to take it down, I need to get to work !

#95 BABY BOOMERS=THEIVES? on 02.07.17 at 10:42 pm

@isuckless

GENERATIONAL THEFT BY THE STAN DRUCKMILLER

https://www.youtube.com/watch?v=DXAEw8psMuQ

ENTITTLEMENTS STEAL THE WEALTH OF OUR YOUTH

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

LOW INTEREST RATES STEAL FROM MILLENIALS
https://www.youtube.com/watch?v=z3Acf2KqVcI

#96 Rexx Rock on 02.07.17 at 10:45 pm

Our federal and provincial are broke.T2 dreams every night on how he can tax or bleed the Canadians of their money so they will not get so upset to elect him again next election.We all know his fathers policies was the downfall of Canada.This country is finished,its like a sinking ship.BOC and the government has created a total debt serfdom.I guess it was good for some time.

#97 For those about to flop... on 02.07.17 at 10:47 pm

Pink Snow falling in Vancouver.

These guys thought that it was a good idea to shell out 1.43m in late March 2016 for a 1944 build.

If they get their current asking price they will lose roughly 150k including expenses.

Calling all developers…

M42BC

536 E 55th ave. Vancouver

Jan 2:$1,388,000
Feb 7: $1,298,000
Change: – 90000.00

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

#98 FF 45 on 02.07.17 at 10:48 pm

Andrew Ross Sorkin of the NYT had a great article the other day on Seth Klarman’s thoughts about the stock market and what Trump means for the world of investing. Klarman is one of the greatest value investors of all time (although relatively unknown). He manages a $30B fund in Boston (Baupost).

It’s clear from the article that Klarman abhors Trump’s erratic leadership style. Essentially stating that Trump is doing things for the sake of doing them with no clear vision. What I found most interesting were Klarman’s points on the negatives of Trump’s policies. Everyone is focused on the tax cuts and stimulus. But what people fail to see is that tax cuts and stimulus will lead to higher interest rates and inflation which will have a destabilizing effect. In addition, protectionist policies will have the effect of making the US and its trading partners worse off – the point being that automation and globalization increase efficiency and our standard of living. So people should expect volatility in the market. If he goes through with the tax cuts and stimulus, it would blow a hole through the US federal budget (see what the Bush tax cuts did in 2001).

Klarman also notes a disconnect between the current stock market euphoria and stock valuations which are high by historic comparisons. See CAPE Shiller P/E ratio, total stock market capitalization/GNP, and Q ratio – all pointing to market overvaluation. So what to expect of future stock market returns then? They should be lower than past average returns, until the US market returns to more reasonable levels.

I found it interesting that Klarman currently has 30% of his fund in cash. He’s known to do this from time to time.

Here is a link to the NYT article:

https://www.nytimes.com/2017/02/06/business/dealbook/sorkin-seth-klarman-trump-investors.html?_r=0

financialfreedom45.com

#99 Smoking Man on 02.07.17 at 10:55 pm

#70 Kick out the jams on 02.07.17 at 8:50 pm
my TSFA is hurting a little bit. about fully maxed but a couple bad gambles so in the red. oh well, i think this year is my year.

Smoking Man – give this a listen: https://www.youtube.com/watch?v=nLcUR7iBWqE

something tells me it will speak to you

You got no idea how I enjoyed that tune. First time I’ve heard it.

It resenated yuuge on the first of many passes.

Thanks for the link.

Love the shit I learn on Garths pathetic blog.

#100 Deplorable Communications on 02.07.17 at 11:03 pm

#93 Smoking Man on 02.07.17 at 10:28 pm

Got to say with so many people agreing with me these days. It’s not fun posting any more. Gone the rabid insults, stimulus fir the next epic post of a great writer.

I thinking of burning my MAGA red hat and trade it for a vagina out fit for the next woman’s march.

Can some one please insult me. Or I’m switching lefty loon.
..
Well you always struck me as a closet switch hitter…

#101 Smoking Man on 02.07.17 at 11:03 pm

Every time I get the urge to post a carrier ending post on linkedin this song attempts to snap me out of it. Then one day it did not work.

https://www.youtube.com/shared?ci=j9O6qNIQKoA

I never listend in schook much or I could properly spell scool.

Going into uncharted waters soon. Wish me luck.

#102 dogman01 on 02.07.17 at 11:05 pm

Subject: Plutocracy

Rich People.
It is not about income it is about wealth. Make $300K from your work, well all the power to ya. There is something Nobel in doing a task that has such value.

It is the power that comes from that wealth that has a smell. It is one thing if you earned it yourself, but most of the fortunes are inherited. Bill Gate is an exception.

Do you need more evidence of the influence and access these people have:

http://www.cbc.ca/news/politics/trudeau-aga-khan-helicopter-1.3932827

http://www.theglobeandmail.com/news/politics/rona-ambroses-yacht-vacation-keeps-tories-mum-on-liberal-ethics/article33920459/

http://www.chicagotribune.com/news/nationworld/ct-obamas-kitesurfing-vacation-20170207-story.html

I “get” Piketty’s book and I get the math. You cannot have democracy when the wealth disparity is so great.

#103 InvestorsFriend on 02.07.17 at 11:21 pm

Old Age Claw Back of 15%

I always thought that the 15% old age pension clawback meant that if someone in the clawback range earned an extra dollar then they were subject to their usual marginal tax rate (say 40%) PLUS 15% for the clawback.

Actually, it is not quite that bad. Since the old age pension is taxable, when they charge a $1.00 of Clawback it only costs you about 60 cents after tax.

So, an extra dollar of income in a 40% tax bracket, if the clawback applies costs you a marginal tax rate of 40% plus 60% of 15% = 49%. Not great but far better than what I thought which was 40% plus 15% = 55%.

The extra tax burden on those in clawback is less than I thought.

#104 Al on 02.07.17 at 11:25 pm

If you still want electoral reform, see the petition below. Who knows, T2 may sway with wind..

https://petitions.parl.gc.ca/en/Petition/Details?Petition=e-616

#105 InvestorsFriend on 02.07.17 at 11:31 pm

Tax Rates on RRSP Withdrawals

Looking at the progressive tax rates in Ontario, the following might be a realistic scenario.

Contribute and get refunds at a tax rate of 43.41% (Taxable income from $92k to $142k). Withdraw and pay tax at 29.65% (Taxable income in retirement from $46k to $74k)

That scenario means that an RRSP would beat the TFSA by a mile since it is a mathematical fact that if the marginal tax rate is the same on withdrawal as at contribution, the RRSP equals the TFSA in terms of the gain in the net contribution. (The apparent RRSP withdrawal tax is equivalent to the government taking back the share of the RRSP that it paid for via the refund).

Sorry but to suggest that the RRSP is a mere tax shifting device is simply misguided thinking. The RRSP in the scenario above generates (believe it or not) a negative tax rate. (Less tax than the zero of a TFSA)

#106 Kevin's Fanzone on 02.07.17 at 11:34 pm

#80 conan on 02.07.17 at 9:28 pm
“By the way, does anyone know into which black hole in Ottawa the carbon tax money will go?”

My guess is a minimum income program. 40 % percent job elimination due to robots/AI is a real threat.

Carbon taxes stay in the Province.

____

Are you kidding? Almost every new tax from every level of govt secretly goes to fund its underfunded pension program which is in the hundreds of billions. This is the deepest, darkest secret of all govt around the world. Funding their public employees.

#107 For those about to flop... on 02.07.17 at 11:40 pm

These guys spent 955k last Valintines Day on this place and are spending this Valintines Day fighting to get their money back.

Flowers and Chocolates are cheaper…

M42BC

1308 Stevens Street, Surrey

Dec 1:$1,099,000
Feb 7: $1,029,000
Change: – 70000.00 -6%

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDA3NU42OA==

#108 leftygroove on 02.07.17 at 11:42 pm

Great article as always. Think T2 would ever float an inheritance tax (say on every dollar over 100k) to save the sinking OAS ship? If you could reply with a boat metaphor, that’d be ideal.

#109 Al on 02.07.17 at 11:59 pm

#44 Keith

“So I hear from people all the time that we don’t need government to take care of us, better to leave tax dollars in the hands of ordinary people because they are so much better at taking care of it.

No they aren’t. Forget the fact that people who are too stupid to fill out a form to get free money would probably be pretty lousy at making investment decisions on their retirement money – ponder that for a moment. THEY PASS UP FREE MONEY! CPP has 7% + rate of return, 0.35% costs and access to private investments. Raise the contributions, 15% each employee and employer. Crank up the payouts. Time to give up on amateur investors taking care of their own retirement, or in the hands of advisors with 2.5% mer.”

So true, people should at least be given the option to do so. It should be made as automatic and seamless as possible in order to boost participation so the rest don’t have to pick up the tab later on.

#110 Al on 02.08.17 at 12:20 am

#105

“That scenario means that an RRSP would beat the TFSA by a mile since it is a mathematical fact that if the marginal tax rate is the same on withdrawal as at contribution, the RRSP equals the TFSA in terms of the gain in the net contribution. (The apparent RRSP withdrawal tax is equivalent to the government taking back the share of the RRSP that it paid for via the refund).

Sorry but to suggest that the RRSP is a mere tax shifting device is simply misguided thinking. The RRSP in the scenario above generates (believe it or not) a negative tax rate. (Less tax than the zero of a TFSA)”

Im sure he knows this, I think he just incorrectly assumes the average person will spend the same or more during retirement. RRSPs are generally more and more advantageous the larger the gap between the tax rate of contribution vs tax rate of future withdrawal as you noted. Also you get to earn compound interest on the tax exemption/delayed amount for decades and with the TFSA you don’t. The TFSA has pros in terms of social benefits eligibility, as its not counted as income. Thankfully we don’t have to chose one or the other, you’re allowed to do both.

#111 Ponzius Pilatus on 02.08.17 at 12:23 am

#72 crowdedelevatorfartz on 02.07.17 at 8:52 pm
Retirement?
BWAHAHAHA.
Come ON people.
Been to a WalMart lately?
Those ‘greeters” at the door arent there because they’re lonely.
Low skill low paying “McJobs” await those who dont prepare….
Speaking of “McJobs” even that term is obsolete
Seems McDonalds has clued in and replaced “The Working Dead” with touch screens in a big way.
Safeway has touch screens and scanners as well.
Robots dont go on strike.
BC Liquor Stores take note.
————
Sorry Furz,
BC liquor stores employees are the nicest retail people.
If they ever replace them with robots, there will be lots of broken bottles in the stores.

#112 Ponzius Pilatus on 02.08.17 at 12:38 am

Personally, I believe we should receive the same amount in benefits (plus interest) than we paid in taxes.
Problem is, large portion of my taxes is going to support people who never paid into the pot.
Guess who these people are?
Hint: not the people dying in the streets of Vancouver’s East Side.

#113 Balmuto on 02.08.17 at 12:41 am

“#98 FF 45 on 02.07.17 at 10:48 pm
Andrew Ross Sorkin of the NYT had a great article the other day…”

Not the failing New York Times?!? Fake news! Only Breitbarf is truth!

But seriously, good article. I agree with most of what Klarman says about Trump’s policies but what actually caught my eye the most is his comment about the current trend towards passive investing:

“The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.”

That’s pure gold. He’s not the first person to have said this kind of thing but the way he articulated it is perfect. At some point, active management will have a roaring comeback for this very reason, and the trend will reverse. But first it’s a race to the bottom in fees, followed by massive industry consolidation.

#114 Smoking Man on 02.08.17 at 12:52 am

Writers artists and everything in between . If you find it

https://www.youtube.com/shared?ci=_mKhTxm-8mo

#115 All A Snackbar on 02.08.17 at 12:53 am

#93 Smoking Man

It’s not fun posting anymore.

Maybe you need to try harder. Other people’s posts get deleted sometimes and they feel great because they defined the narrow parameters of acceptable discourse on this blog.

You could hang out at a SJW blog and see how much more fun you would have.

Go Trump!

Trump is great!

Best President since JFK

Etc etc…

#116 Gentle ,Loving Kindness on 02.08.17 at 1:54 am

Surely govt. must look at the monumental and almost completely untaxed activities of flipping, speculation, and cash rentals that have fueled this grotesque bubble due to CRA’s inability to police the residential capital gains exemption. Surely they should not be able to tax to death every other type of investment activity while leaving the non-productive real estate sector to grow to the moon.
———————
And quit calling me Sherly !!

#117 Ontario's Left Coast on 02.08.17 at 2:18 am

Smokey #93 – Hey, what can I say? You used to be annoying but over time you’ve grown on the Dogz! Enjoy your new role as an establishment poster. Cheers!

#118 Thanks vreaa on 02.08.17 at 3:27 am

https://thetyee.ca/Opinion/2017/01/30/Vancouver-Plutocrat-Playground/

#119 Stock Picker on 02.08.17 at 4:49 am

#70 KOTJ….I hate to hear the term gamble when it comes to investments…..that’s so television dude. The first rule of investing is capital preservation…..not losing money. There are so many sure things on offer there really isn’t any need to gamble. Buy good companies and be patient…bottom line.

#120 Ralph on 02.08.17 at 5:35 am

Easy solution: enact a “Basic Income”, allowing CPP and OAS to be cancelled, then claw back the basic income from anyone with RRSP holdings that are generating income or being withdrawn.

It’s an easy way to tax RRSP’s without political consequence.

Various governments are on record supprting “Basic Income”.

Now you know WHY!

#121 westcdn on 02.08.17 at 6:37 am

I am rambling this morning.

Canadian capital gains tax was introduced starting in 1972. The main reason seems to be that business owners had incentive to convert taxable income into non-taxable capital gains. If a corporate business chose not to distribute profits (dividends) and instead keep the profit as retained earnings, it could convert taxable dividends into a tax free capital gain. This resulted in large pools of capital tied up in retained earnings. As far as I can tell, corporations have always had a lower marginal income tax rate than individuals.
One of the justifications given for capital taxes was to finance future Old Age Security payments. http://www.canadafaq.ca/what+is+capital+gain+tax+in+canada/

The determination of a fair capital tax is complicated. As a Canadian rule, double taxation of the same income and the effect of inflation on capital gains are avoided. It makes sense the principal real estate capital gains are tax exempt because the owner pays the mortgage with after tax income (generally). Income tax for an individual is due when cash is received bond interest exempted) so taxable capital gains are a tax deferment for them, much like a RRSP. Corporations, although legally a taxable ‘individual”, live in different world and I don’t want to go there right now.
http://business.financialpost.com/personal-finance/how-to-calculate-your-capital-gains-tax-or-not

Personally, I want income tax rates (which includes capital gains) lowered and consumption taxes raised.

A Son-in-law went to the US to become a doctor. He borrowed his tuition from Canadian banks while the loonie was above par. Now his earning US$ and repaying his student loan in Cdn$ – sweet. When he graduated, everyone had to apply for an intern position across the US. Nearly half his classmates failed to secure an intern position – God only knows where they end up. The US has competition for good doctors. My SIL works long hours and deals with deplorables looking for prescription handouts.

My X was working as a night shift unit clerk at the old Calgary General during the market crash of 1987. Yep, I got to play Mr Mom a lot and hold the fort at work. There were often days I was exhausted (being an introvert, I need private time and sleep doesn’t count). A heart surgeon nearing retirement had his investment portfolio wiped out. Nurses know what is going on in a hospital. The nurses considered him one of the worst surgeons but he doubled up his heart surgeries after the crash. What happened to ethics before money?

I always found dentists knew my insurance plan better than I did and charged accordingly but, at the end of the day, despite my whining, it is my own fault.

#212 InvestorsFriend on 02.07.17 at 12:19 pm – Actually, Alberta does not subsidize other provinces. I disagree. Note how provincial pool contributions are calculated to determine beneficiaries i.e. refund of federal taxes mainly from income taxes. Is it fair that because Alberta has high average wages for a reason that tax the rich should apply? It feels like double taxation.

#254 Ace Goodheart on 02.07.17 at 6:25 pm – It appears to me the magic number is $500,000.00.
I agree.

#122 pBrasseur on 02.08.17 at 7:44 am

Solid post Garth, good work!

So both private and public finances (both federal and provincial) are unsustainable, way to go Canada!

Honestly you almost have to wish there’s some kind of crisis or crash very soon to force a correction, without it this dire situation will just keep getting worse, who know what the consequences might be then!

#123 thx pink snow on 02.08.17 at 8:05 am

#97 For those about to flop… on 02.07.17 at 10:47 pm
Pink Snow falling in Vancouver.

****

Thanks for your Pink Snow updates – I enjoy them!

#124 MT on 02.08.17 at 8:13 am

@ Blacksheep:

You got it, the non professional, often stay at home partner.

Any body that says they don’t deserve income is talking out their ass, from inexperience.

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

Have you ever seen the cartoon strip For Better or For Worse (Canadian-made strip!)? There’s a classic one, several decades old now, showing the husband busy at work venting about how lucky his wife is to stay home all day, and beside that it shows the wife dealing with kids complaining about how lucky her husband is to be able to get out of the house.

Both of them bear a lot of responsibility and deserve equal credit, no doubt about it.

#125 Bye Bye on 02.08.17 at 8:24 am

#93 Smoking Man on 02.07.17 at 10:28 pm

Got to say with so many people agreing with me these days. It’s not fun posting any more. Gone the rabid insults, stimulus fir the next epic post of a great writer.

I thinking of burning my MAGA red hat and trade it for a vagina out fit for the next woman’s march.

Can some one please insult me. Or I’m switching lefty loon.

** ****

You’re a super nice guy that everyone loves. We all respect you and think you’re the kindest, most warm-hearted person we’ve ever met. We love you. We would be broken to pieces if you stopped all of your incredibly insightful and high quality posts. We will miss you terribly. Good Bye.

#126 Dominoes Lining Up on 02.08.17 at 8:29 am

City of Toronto is heading for a financial meltdown.

Quiz – who said this?

“I’m getting a little nervous about it,” he said of future years’ challenges. “How many more rabbits can we pull out of the hat?”

a) Penn (or Teller)
b) Justin Trudeau’s PR manager
c) Toronto city budget chief

Answer: C

https://www.thestar.com/news/city_hall/2017/02/07/executive-committee-signs-off-on-2017-budget-paving-way-for-councils-approval.html

When your own city managers say this, as well as that you are merely “kicking the can down the road”, you know you are in trouble.

Without the land transfer tax fuelled by the housing bubble, Toronto’s finances will collapse.

And that is doomed. Toronto faces a coming real estate collapse, increasing delinquencies in property and business tax payments and now a budget with blinders on.

Toronto is living off its own HELOC, and the credit limit is about to be drastically reduced.

Incompetent politicians have made this all possible, starting with Flaherty and his ridiculous 40 year amortizations now to John Tory and his council’s economic cowardice.

Complaining to other levels of government won’t produce results. Only sound financial leadership will.

None of that to be seen, anywhere.

#127 crowdedelevatorfartz on 02.08.17 at 8:32 am

@#111 Pee Pee
“BC liquor stores employees are the nicest retail people.
If they ever replace them with robots, there will be lots of broken bottles in the stores”
******************************************
Try again.
I think they are “nice” due to the fact that they are well paid , unionized, pensioned, with expensive subsidizeddmedical/dental benefits, aka govt slugs.
Doing a job the private sector could do for no cost to the taxpayer (cue Safeway scanners).
Essentially unskilled labour that are unionized govt employees that can scan a bottle of booze over a cash register and stock shelves.
My experiences in BC Liquor store run from the sublime to the absurd. Surly staff are more common than helpful ones.
Arrogant, unhelpful, and lazy seem to be a prerequisite for employment.
When I asked at one liquor store about a particular brand of beer(Sleeman’s Cream Ale) that wasnt availableI was told, ” Why would ANYONE want to drink THAT swill?” by an unshaven 30’s something male employee who’s shirt looked like he had slept in it.
To the female cashier who was more concerned with bragging about her vacation to a nother cashier than even acknowledging the 8 people( customers?) in the lineup directly in front of her.
These incidents (and more) all happened in the previous 2 months and I could go on but whats the point?
They are unaccountable, insolent, arrogant and …most importantly….untouchable due to their union status.

Fire them all and turn it over to the private sector.

Dont get me going on ICBC……….

#128 Sonny on 02.08.17 at 9:03 am

Hi Folks,

Does anyone know how/where I can find information on what year I had last contributed to my TFSA account? Would CRA have this info?

I have missed contributing for a few years and would like to go back and make up all of the contribution room that I have.

Thanks for the help.

#129 Reply to #128 on 02.08.17 at 9:31 am

Yes, Sonny, CRA does have the information. Go to the section “Where can I find my TFSA contribution room information?” by clicking the CRA Website below.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html

#130 The Milton boom on 02.08.17 at 9:48 am

http://toronto.ctvnews.ca/population-of-metropolitan-area-of-toronto-outpaced-national-growth-rate-over-last-5-years-1.3275869

Milton up 30% !!!

#131 IHCTD9 on 02.08.17 at 9:52 am

#254 Ace Goodheart on 02.07.17 at 6:25 pm
Re: #225 IHCTD9 on 02.07.17 at 1:35 pm:

True most of us can’t actually set up enough flow in our investments to enable us live off of dividends and capital gains.

It appears to me the magic number is $500,000.00. That is where things get juicy. It’s like a snowball. The little ones don’t roll as far. 500K seems to be the “sticky point” where stuff starts catching on other stuff.

I started mine out at $600 per month in dividends and distributions and I ran it for a few years to see if it would hold. It did. So I kept adding to it. It took a long time. But it got to the point where I was reinvesting about 2k per month in addition to adding new money, and that was the 500K level. From there, things get really good.

But you have to start early. That is what all the young folks on here need to hear every day. Start doing it early. Things add up, but it takes about 20 years before you notice it.
__________________________

Took the words right out of my mouth. Start Early. I’ve already been preaching this MO to my kids. They will see the day where getting a job is near impossible no matter what you’ve got in your bag of tricks. Meanwhile the folks pulling in a decent income from investments will live comfortably in a world with more products and technology than has ever existed, and at a price point lower than it has ever been.

20 years is about right, and I’d say I started feeling good about my investments already at 100K – but those were some good years back then. Nowadays it takes more to net the same. I wish I could save/invest more right now, but I’m stuck at about 1K/month until the kiddies are done school. That’s life!

I’ve got a hunch that the future brings both lower wages and lower cost consumer goods. If a guy could draw even 50-60K as a capital gain, a fellow might be considered very wealthy even 20-30 years from now (depending on future tax laws – might have to leave the 1st world to avoid being robbed).

#132 IHCTD9 on 02.08.17 at 10:00 am

#120 Ralph on 02.08.17 at 5:35 am
Easy solution: enact a “Basic Income”, allowing CPP and OAS to be cancelled, then claw back the basic income from anyone with RRSP holdings that are generating income or being withdrawn.

It’s an easy way to tax RRSP’s without political consequence.

Various governments are on record supprting “Basic Income”.

Now you know WHY!
_____________________________________

We’d have to have an extremely short sighted government to do something like that – who would save if they’re handing out free money only to those who don’t save?

If they are that stupid – that’s ok, because then I’ll be able to retire early, live of Basic Income, while drawing down my RRSP’s paying jack for income tax – and it’ll take 20 years before the government realizes what’s going on…

#133 maxx on 02.08.17 at 10:11 am

#133 CANADA on 02.06.17 at 10:51 pm

“God, are doctors ever greedy.
If 300,000 + per year isn’t enough then BEAT IT and leave Canada NOW.
I had no idea they earned so much money.
If helping people isn’t enough incentive to be a doctor then get out of my country now!!!!!
I think i’ll be hating them now.”

Take a deep breath. Those earning 300K earn far less than some corporate CEOs and FIRE types, so get some perspective. The day you need a doc will be the day you change your stripes. Quickly.
Perhaps much more attention ought to be directed to incredibly disrespectful, wasteful nastiness such as this one who played the system beyond all moral boundaries, so as to have extracted 5X over average of taxpayer funds from the health care system in a single year(en français):

http://www.lapresse.ca/le-soleil/actualites/sante/201609/23/01-5023707-barrette-condamne-le-docteur-issam-el-haddad-et-lhopital-de-la-sarre.php

http://quebec.huffingtonpost.ca/2016/10/04/chirurgien-millionnaire–lenquete-du-cisss-at-commence-mercredi_n_12338182.html

300K average per year with an eye to (legal) tax reduction is not evil.

Unnecessarily milking the $hit out of the system to the eventual detriment of patients who’ve paid into it, is.

Wonder how much of this is going on across the country and whether T2 and the selfie brigade will come out of the ether long enough to twig this and actually see this monstrous enrichment for what it is: an elephantine source of egregious tax hemorrhage happening now, today, in real time.

These huge chunks of tax revenue are disappearing, fast- as we blog.

The minutiae of docs making the average or less can be parsed if and when the CRA gets bored. The profiteering social garbage, devoid of any notion of decency, who screw the taxpayer this large ought to be hauled in for immediate audit, followed by a courtroom for a ruling of complete and immediate repayment of excess billing. Suspension of license for at least 5 years should then follow.

Decent, hardworking docs are not the problem and all hospitals across the country ought to be IMMEDIATELY tasked with rooting out this veiled railroading of money that belongs to taxpayers.

#134 dumpster fire on 02.08.17 at 10:57 am

105 InvestorsFriend on 02.07.17 at 11:31 pm
Tax Rates on RRSP Withdrawals
***

I posted charts the other day on RRSP vs non registered accounts; here is the equivalent chart for RRSP vs TFSA. It shows how much better (or worse) a RRSP pre-tax lump sum investment would perform over an equivalent after-tax TFSA based on different future tax rates:

http://imgur.com/frUQz1E

Regardless of how much you grow the investment, RRSP is better if your future tax rate is less, and it is a wash if your future rate stays the same. So, for example, if you invest when you are in a 40% tax bracket and take it out when you are in a 30% bracket, the RRSP will before 20% better.

That being said, TFSA is way more convenient.

#135 IHCTD9 on 02.08.17 at 11:01 am

Looks like T2 and Co., along with the general overall condition of the 1st world will be declaring war – little by little – on anyone who has managed to save a few bucks, anyone who mustered up big kohonez and started a business, or those who spent the entirety of their youth in school studying to become a Dr. or similar.

It’s going to be pretty hard to listen to the reasons why this “must” be done, and the more angry brokeass folks that exist in our society, the more acceptable this kind of thing will become – eventually pilfering what others sacrificed for decades to accumulate will even become a desirable voting issue. It’ll distill down pretty raw – “you have it, we need it, so we’re taking it.”

Better keep your eyes open, and you’ll have to call it before it happens to win. If I were single, and T2 got another mandate, I’d start planning to leave Canada the day after the election. I don’t trust this new thinking. The social contracts penned between people and government decades ago are not untouchable anymore. I’m not 100% sure the TFSA will still be TF when I retire, I’m not sure I won’t be punished for my efforts at saving somewhere down the road.

Trust and Faith are skidding – and I have to worry now which sucks. I fully understand they’re screwed for money, and I fully expect that out of the many ways they could bring the ship back into port safely, they will chose pretty much the only option that will surely torpedo the hull – stripping the citizenry. What else is new.

I’m stuck here, but I also have the skills, resources, and knowledge to move well off the beaten path. I am modifying my consumption habits as the opportunities arise. I’ll be voting for the crash. If the SHTF here in Ontario, I’ll actually be in pretty good shape if all goes well. I am out there making it happen every night – even in the ice storm last night.

Anyone here that has saved, built, or created had best look at their skillset and resources and assess to what end these could be put to work. That work would be preserving what you have achieved come the not too distant future.

#136 Capt. Serious on 02.08.17 at 11:10 am

“The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.”

That’s pure gold. He’s not the first person to have said this kind of thing but the way he articulated it is perfect. At some point, active management will have a roaring comeback for this very reason, and the trend will reverse. But first it’s a race to the bottom in fees, followed by massive industry consolidation.

Oh, this tired old dog. Returns may be lower going forward for loading factors (e.g. small value) because everyone is chasing them, but it’s becoming more difficult for active management to outperform because markets are becoming (paradoxically) more efficient.
Swedroe does a good job of taking down Klarman’s assertions:
http://www.etf.com/sections/index-investor-corner/swedroe-klarmans-indexing-jabs-miss?nopaging=1

#137 Ponzius Pilatus on 02.08.17 at 11:15 am

#131
Took the words right out of my mouth. Start Early. I’ve already been preaching this MO to my kids. They will see the day where getting a job is near impossible no matter what you’ve got in your bag of tricks. Meanwhile the folks pulling in a decent income from investments will live comfortably in a world with more products and technology than has ever existed, and at a price point lower than it has ever been.
———————-
Interesting.
So, what you’re saying is that 1% will be living off their investments, and 99% will be unemployment and on the street.
Is your real name Huxley, by the way?

#138 tuericentrum on 02.08.17 at 11:20 am

Sorry, late to the conversation and can’t afford to read all above posts. So, apologies if this has already been suggested: Best way to fix OAS and make it more sustainable is to lower the thresholds for clawback.

#139 jess on 02.08.17 at 11:30 am

wholly kumbaya! incompetent politicians?
“It always ends badly when the government tries to manipulate the market”
===================
regulating lite
And the real “innovators” of this new financial architecture ? And the riggers of libor etc?

https://www.econstor.eu/bitstream/10419/64158/1/594053420.pdf

…” Institutional investors’ incentive to take high risk is generally strongest in periods with low interest rates. When interest rates are high, so is the opportunity cost of investing in a high risk asset instead of a low risk bond, and conversely.”

” A risk manager at a large global bank described this perfect calm as follows. “We were paid to think about the downsides but it was hard to see where the problems would come from. Four years of falling credit spreads, low interest rates, virtually no defaults in our loan portfolio and historically low volatility levels: it was the most benign risk environment we had seen in twenty years” (The Economist, “Confessions of a risk manager,” August 9, 2008). 4
Satyajit Das, author of numerous texts on financial engineering, explained that: “MBS structures reached levels of complexity second only to derivatives. … Few investors understood them” (2006. p. 283).

========================
https://www.theguardian.com/us-news/2016/nov/30/political-correctness-how-the-right-invented-phantom-enemy-donald-trump

#140 Spaccone on 02.08.17 at 11:39 am

This triggers me…

Tax Exemptions for Investment Income: Boon or Bane?
https://mowatcentre.ca/tax-exemptions-for-investment-income/

“The Canadian tax system is riddled with tax exemptions and preferences for many different types of income and taxpayer characteristics.”

#141 Barb on 02.08.17 at 11:47 am

Re T1 and Aga Khan Development Foundation:

“The most recent grant (from the Liberal gov’t) was a five-year, $55-million project to improve health services in Afghanistan that was announced in December 2015 under the Trudeau government.”

from January CBC: http://www.cbc.ca/news/politics/trudeau-aga-khan-helicopter-1.3932827

Canadians’ tax money improved health services in Afghanistan?
How about for Canadians here?

How could any Canadian vote for this silver-spoon-born socialist piece o’ crap?!?!
He doesn’t live in the real world.
But we have to.

#142 Barb on 02.08.17 at 11:47 am

meant to type T2 for the first sentence!

#143 neo on 02.08.17 at 11:49 am

#130 The Milton boom on 02.08.17 at 9:48 am
http://toronto.ctvnews.ca/population-of-metropolitan-area-of-toronto-outpaced-national-growth-rate-over-last-5-years-1.3275869

Milton up 30% !!!

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

The 2001-2006 census it was up over 300%. 2006-2011 it was up over 250% so this 30% needs to be put in context. The rate of growth is actually declining.

Housing prices are up 24% so far this year though.

#144 InvestorsFriend on 02.08.17 at 11:52 am

Do RRSP Investors Eventually Pay Tax? (Not usually)

Dumster fire said:

Regardless of how much you grow the investment, RRSP is better [than the TFSA] if your future tax rate is less, and it is a wash if your future rate stays the same. So, for example, if you invest when you are in a 40% tax bracket and take it out when you are in a 30% bracket, the RRSP will before 20% better.

******************************************
Dumster fire is one of the few that understand this.

Here is a startling and provocative conclusion from this.

If the RRSP gains give a higher net return than TFSA gains whenever the tax rate at withdrawal (net of any clawback) is lower than the tax rate at the time of contribution and if the TFSA has a xero tax rate then what must the tax rate on the RRSP gains be?

That’s right, the net tax on the RRSP investments must be NEGATIVE. As Garth said the RRSP is the really huge gift to the rich.

Here is the math. Invest $6000 in TFSA and pay no tax.

Or invest $10,000 in RRSP $6000 of your own money and $4000 from a refund. Your net cost is the same $6000. If both funds grow 100% than TFSA grows to $12,000 with no tax on the $6000 gain. RRSP grows to $20,000 withdrawal and pay 30% tax = $6000 tax and your net is $14,000. You have $2000 more than the TFSA on your same net $6,000 investment. Hence tax rate on the gain in your money must be negative. In effect the government funded 40% of your RRSP and only took back 30%. How would you like to invest with any partner that said I will put in 40% of the money but I only want 30% of the proceeds when we cash out?

Meanwhile people still whine about the tax on RRSP withdrawals which are really just repayment of the governments share of the RRSP that they contributed in the first place via the refund. People getting NEGATIVE taxes think they are missing out on dividend tax credits within the RRSP. They are education and math challenged.

#145 For those about to flop... on 02.08.17 at 11:53 am

#123 thx pink snow on 02.08.17 at 8:05 am
#97 For those about to flop… on 02.07.17 at 10:47 pm
Pink Snow falling in Vancouver.

****

Thanks for your Pink Snow updates – I enjoy them!

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

You’re welcome ,whoever you are.

They are not for everyone,I have received a bit of push back form people with ulterior motives but I will keep going.

One thing I noticed yesterday is that people have been presaling larger,higher end condos up into the 900k/1 million dollar range before the correction started and houses are coming down, so there are certain areas where you can get a detached house, which for most people is the preferred option for the same money due to market compression.

One development had 96 units due to be completed this year and 15 of them are already back on the market.
No doubt some speculation,but do these units look as good of an investment as 12 months ago for someone to step in?

How would you like to be the people that I featured a couple of days ago that spent 3million on a 90 year old house and are trying to sell it to cut their losses at the moment?

The assessment the year before was only 2million and that’s where the market is heading ,so these people can’t be sleeping to well at the moment.

Who knows what’s going to happen but I am just trying to document the correction to the best of my ability and either way in ten years we can look back and see what was happening at the time.

I like to stir the Orange Octopus,the Metrosexual Messiah and Cabbage Patch Clark,but right now I am busy shovelling Pink Snow…

M42BC

#146 conan on 02.08.17 at 12:17 pm

Re: #141 Barb on 02.08.17 at 11:47 am

“How could any Canadian vote for this silver-spoon-born socialist piece o’ crap?!?!
He doesn’t live in the real world.
But we have to.”

Feeling a little alt right today?

Seriously though, We are in a military conflict in the area. Probably not a bad idea to have health facilities built. Our wounded soldiers could use them to get initial critical care.

Innocent civilians, injured in the cross fire, will have a place to get fixed up.

Thanks Barb. It is people like you and your solid unwavering commitment to the Harper Con cause that made this country what it is today.

#147 Doug in London on 02.08.17 at 12:17 pm

Yes, interesting times we live in. Yesterday I read a post about how the Federal Government is running big deficits, and all the easy low hanging fruit tax increases have already occurred. It’s easy to blame T2 and his generous spending, but that’s only part of the story. As GFC v2.0, post #22 pointed out, the Conservatives weren’t much better. They got away with it because during their time more tax revenues were coming into government coffers due to selling oil at higher prices than now. Regardless of cause, the Feds will be looking for more ways to cut expenses as well as increase taxes.

Just think, if transfer payments to provinces and municipalities drop, how will they fund the shortfall? Obviously not with highway tolls, at least in Toronto area. With higher house prices, especially in Toronto and Vancouver, city hall will be looking at tax assessments to reflect increased house values. Also, in Toronto, the electric system has been expanded to power all that recent growth, and will need more capital investment. Those overloaded transformers won’t last forever. Inevitably, if you think your bill from Toronto Hydro is high now, it could get higher. Yes, things could get interesting in years to come.

#148 Trading Naked on 02.08.17 at 12:45 pm

Maybe RRSP contributions are down because you need a job in order to earn room, and if you don’t have a job…or if you’re a barista with a useless degree and a student loan…

Plus if the aging population is dropping out of the workforce, they’re not making RRSP contributions either.

#149 Wrk.dover on 02.08.17 at 12:50 pm

There was talk here last night on what place to exit to with a GTA house sale payout….don’t forget to taste the drinking water in your new location before buying.

A water test rating of commercial bottling quality should be the only acceptable target.

That rules out large swaths of Southern Ontario to my taste buds. Yup, I can’t stand the taste of clay.

#150 TurnerNation on 02.08.17 at 12:58 pm

US – Bonds rallying as per Smoking man’s call few days ago.
He’s out herded the weekend ersatz bloggers and their fancy “chart reading certificates”??

#151 pBrasseur on 02.08.17 at 1:01 pm

#144 InvestorsFriend
Do RRSP Investors Eventually Pay Tax? (Not usually

Interesting post! It’s pretty clear RRSP are most useful to those with high marginal rates! As such you are correct to say RRSP favors the rich more than the TFSA.

But for the (relatively) rich TFSA is also an excellent complement. I figure TFSA is good to allow withdrawing more funds without climbing into a superior tax bracket, thus making RRSP and cash account even more efficient.

Also the TFSA can be very useful to avoid taxes in case of a large purchase where a RRSP withdrawal would kill you, once that’s done you can refund your TFSA in subsequent years.

Bottom line TFSA and RRSP are both great tools, even better when used in conjunction.

#152 For those about to flop... on 02.08.17 at 1:02 pm

This post is for my blog buddies on the island.

Not too sure which way Victoria is going to go but these guys aren’t messing around.

They bought this place for around 830k in September 2016 and was put back on in January of this year.

It is assessed at 838k

Spooked or trying to make a little bit of money …who knows?
They obviously couldn’t meet their original target price.

So far this month Nanaimo has had 30 price reductions and 13 increases and Victoria just 9 reductions at this stage,but the opposite trend of last month.

1234 Richardson Street, Victoria

Jan 20:$969,000
Feb 7: $928,000
Change: – 41000.00

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

#153 Metaxa on 02.08.17 at 1:12 pm

Re: BC liquor store employees:
Fire them all and turn it over to the private sector.

Do you think the private sector will offer the same selection and pricing to a consumer in Smithers as they do in Vancouver?

My local store keeps Metaxa brandy on the shelf, even marks it down by a dollar every now and then, despite it selling at the lowest percentage of any other product.

Also, once a bottle of wine is listed it remains listed at that original price regardless of what Wine Spectator says and how much bottles go at auction in the US.
Every now and then there are some real bargains for the astute, educated wino.

Government services aren’t all bad just as private sector isn’t all good.

#154 Kevin's Fanzone on 02.08.17 at 1:41 pm

#153 Metaxa on 02.08.17 at 1:12 pm
Re: BC liquor store employees:
Fire them all and turn it over to the private sector.

Do you think the private sector will offer the same selection and pricing to a consumer in Smithers as they do in Vancouver?

My local store keeps Metaxa brandy on the shelf, even marks it down by a dollar every now and then, despite it selling at the lowest percentage of any other product.

Also, once a bottle of wine is listed it remains listed at that original price regardless of what Wine Spectator says and how much bottles go at auction in the US.
Every now and then there are some real bargains for the astute, educated wino.

Government services aren’t all bad just as private sector isn’t all good.

____

Let me destroy that whole speech. There is a South American rum I like. Its $4 there. Retail. HERE….its $40. There is no way there is a 1000% markup and shipping. Not a chance. You can buy Olive Oil and other “shipped” glass goods for “dollars” yet somehow this booze goes from $4 to $40?

The govt does not play fair. The whole process is entirely corrupted. And the faster it gets into the private sector the better.

#155 calgary on 02.08.17 at 1:41 pm

DELETED

#156 S.Bby on 02.08.17 at 1:42 pm

38% of Canadians dip into RRSPs early, BMO survey suggests and almost a fifth of them don’t ever expect to replenish what they’ve taken out.
http://www.cbc.ca/news/business/rrsp-bmo-poll-1.3971964?cmp=rss
Almost a third, 30 per cent, said they had a good reason for doing so: buying a house.
We have really lost our way…

#157 Reply to #105, #110, #134, #144 on 02.08.17 at 2:00 pm

Why is this an “either/or” and not a “both/and”? Should we not max out all of our registered investments accounts?

#158 WileE Toronto on 02.08.17 at 2:01 pm

#58 Shortymac

Congrats to you and hubby , good luck with it!

M46ON

#159 IHCTD9 on 02.08.17 at 2:07 pm

#137 Ponzius Pilatus on 02.08.17 at 11:15 am
#131
Took the words right out of my mouth. Start Early. I’ve already been preaching this MO to my kids. They will see the day where getting a job is near impossible no matter what you’ve got in your bag of tricks. Meanwhile the folks pulling in a decent income from investments will live comfortably in a world with more products and technology than has ever existed, and at a price point lower than it has ever been.
———————-

Interesting.
So, what you’re saying is that 1% will be living off their investments, and 99% will be unemployment and on the street.
Is your real name Huxley, by the way?

___________________________________________

More or less. As good jobs dwindle a small fraction will prosper off the few decent private sector jobs still going, some will do well working for Government, those who built a decent nest egg would live that way. While these fortunate groups live per usual, their costs of living will be driven through the floor by the broke masses – unless government gets stupid with taxation in which case they will either join the B.I. hoards or leave.

As for my real name, it’s Kirkman, although I’ve always found Huxley inspirational even if he’s a little optimistic.

#160 IHCTD9 on 02.08.17 at 2:34 pm

#154 Kevin’s Fanzone on 02.08.17 at 1:41 pm

Let me destroy that whole speech. There is a South American rum I like. Its $4 there. Retail. HERE….its $40. There is no way there is a 1000% markup and shipping. Not a chance. You can buy Olive Oil and other “shipped” glass goods for “dollars” yet somehow this booze goes from $4 to $40?

The govt does not play fair. The whole process is entirely corrupted. And the faster it gets into the private sector the better.
____________________________________________

Thank you, I don’t know how anyone can think that a government monopoly could possibly be better than a non monopolized private distribution.

I bought a 40 of Rum in Vegas from a private store $21.00.

I bought a 26’er the exact same thing at the LCBO
$25.50

Private US store had a hot young Latina chick working the till.

LCBO had a quad-chinned corn fed heifer who’s been working there for 30 years.

#161 calgary on 02.08.17 at 2:38 pm

disappointed that my #155 comment was deleted. it was factually correct. maybe not politically correct if we r too soft skinned. fact is there are distinct groups that take up way more benefits than they contribute or will ever contribute. classic prudent vs wasteful. both had same opportunity. one was prudent one was wasteful. yet wasteful may come out ahead at prudent one’s cost. bailouts or handouts never work. no incentive to actually contribute.

You generalization slurred and slandered a large class of people. That’s where racism, or sexism, or ageism come from. Try harder. — Garth

#162 Johnny Boy on 02.08.17 at 2:53 pm

Donald Trump criticized Nordstrom for dropping daughter Ivanka’s brand from the department-store chain, drawing a new company into the president’s ongoing skirmishes with corporate America.
He says “My daughter Ivanka has been treated so unfairly,” Trump said on his personal Twitter account Wednesday. “She is a great person — always pushing me to do the right thing! Terrible!”
Nordstrom said last week that it would stop selling Ivanka Trump’s brand this season, citing poor sales. The retailer had come under fire from the Grab Your Wallet campaign, a critic of the administration that is asking shoppers to boycott retailers that carry Ivanka Trump or Donald Trump goods. Whether Nordstrom caved to the Grab Your Wallet People or Ivankas stuff is just not a stellar perfromer on the market this gigantic Orange Ass of a so called president has got to get his shit together and stop tweeting every little thing that rubs him the wrong way. “Hey Asshole” You were elected to run the County! Not the Company! Now stop being a whinny bitch and go do your job. Stay off Twitter, with the crap that comes out of his tweets he is going to rub somebody the wrong way, then that’s it the gloves are off. Fat Orange man down!
P.S.
Shares of Nordstrom dipped after the tweet was posted, though they quickly recovered. As of 11:08 a.m. in New York, the stock was up 0.2 percent at $42.86.

#163 maxx on 02.08.17 at 3:05 pm

#19 Bill Donahoe on 02.07.17 at 6:08 pm

“The cycling of money. So if it costs the Feds $43 Billion per year now for the OAS, the boomers get it and they recycle that money into the economy. If the OAS is cut back, does that mean less cycling of money and less jobs? This economics stuff is hard to get. Seems like its six of one, half dozen to the other.”

Excise government waste and your sailing.

#164 jess on 02.08.17 at 3:14 pm

i seem to like socialists

https://youthfellows.akfc.ca/category/dispatches/

http://www.akfc.ca/en/news/item/296-global-development-journalism
Since 2008, AKFC has supported a holistic effort to improve education for girls and women in 24 districts in four provinces: Badakhshan, Baghlan, Bamyan, and Parwan. Using a collaborative “whole school improvement” approach, AKFC and its partners increased enrolments and kept girls in school by improving the quality of facilities and teaching, while building parent, community, and government support. To date, 175,000 Afghan girls have been able to attend school and keep up their studies.
====================
In 1994, the DND medical unit from Petawawa, Ontario was deployed to Rwanda, where hundreds of thousands of people living in refugee camps faced an outbreak of cholera. Despite best efforts, the medical contingent did not arrive until after the epidemic had passed its peak. The Canadian government recognized the need for a rapid-response capability to provide effective humanitarian
http://www.forces.gc.ca/en/operations-abroad-recurring/dart.page

==============================
Canada’s engagement in Afghanistan

The first Canadian task force in Afghanistan was a battle group that deployed to Kandahar Province in January 2002 under Operation APOLLO and served in a combat role for six months.

Under Operation ATHENA, Canada maintained a major whole-of-government effort including a substantial combat force as part of the International Security Assistance Force (ISAF), first in Kabul (August 2003–December 2005) and later in Kandahar Province (August 2005–July 2011). Operation ATHENA concluded with the Mission Transition Task Force (July–December 2011), which closed the combat task force and moved its assets back to Canada or to other deployed task forces, especially CCTM-A in Kabul.

From May 2011 until March 2014, Canada’s engagement in Afghanistan was centred on Kabul and focuses on four key areas:

investing in the future of Afghan children and youth through development programming in education and health;
advancing security, the rule of law and human rights, including through the provision of up to 950 training advisors for Afghan national security forces;
promoting regional diplomacy; and
helping deliver humanitarian assistance.

#165 Free bird on 02.08.17 at 3:20 pm

#61 Metaxa
If all you angry people are going to round all us old rich guys up and ship us off to join the Doctors and whoever you are mad at next week could you make this re-education camp in the south of Portugal please?
——————-

Thx for the laugh. Could we make it Australia though…per the doomists only place to survive in next couple of decades (if we survive.)

I do think some need a shake for their own good to what they can to survive the next decade(s). Then MAYBE the kind of posts you suggested would go in. Let’s hope or we’ll all be picking up the tab for those whose 5-10 yr plan is new hardwood and or and new house. Some Boomers are looking at a trailer or cheap housing in Costa Rica.

#166 Zed in Geneva on 02.08.17 at 3:25 pm

I think that OAS should be clawed back at a lower level and start at 67. I would be penalized under Harper’s plan since i was born in 1965.

The main priority for the CRA should all those landlords who don’t declare their basement suites income instead of having the workers pay even more taxes. Do not discourage people from studing and becoming successfull. Earning money should makepeople proud, not afraid of backlash from the peanut gallery.

My niece is a medical resident, age 24, never went out drinking because too busy studying. She will not earn much money for another 5 years. I trully believe that she will deserve a big salary with all the time invested in her studies. WE HAVE to pay for that knowledge as a society.

#167 jess on 02.08.17 at 3:45 pm

Vancouver, B.C. 9.3 6.5
Toronto, Ont. 9.2 6.2
Population growth rate among census metropolitan areas (CMAs) in Canada, 2006 to 2011 and 2011 to 2016, ranked by percentage growth in 2016, %

http://www.statcan.gc.ca/daily-quotidien/170208/cg-a003-eng.htm

#168 InvestorsFriend on 02.08.17 at 3:55 pm

Canada 5 Year Bond Yield Down Again

And, so the Canada 5 year bond yield is at 1.02% which is down significantly from the December peak of 1.22%.

So another apparent interest rate hike has fizzled. Better luck next time.

Rate reset pref shares are likely to give up much of their recent gains due to this development unless the five year rate starts to rise again soon.

Will we see any mortgage rate reductions reversing recent gains?

Predictions are hard…

#169 For those about to flop... on 02.08.17 at 4:01 pm

Pink Snow falling in Vancouver.

Some of you might recall the other day that I told you that I have been keeping an eye on 4 flips in trouble nearby where I live.

These guys bought this house in July 2016 for 1.46m ,before renovating the house while the market tanked and have just taken another 150k off and are already bailing out water.

July 2016 …1.46m

Feb 2017….asking 1.499 and still have to deduct renovation costs and transaction costs.

If you click on both links you will see a marked difference in the aesthetics of the same house…

M42BC

https://www.zolo.ca/vancouver-real-estate/3308-carolina-street

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

#170 Freedom First on 02.08.17 at 4:35 pm

#125 Bye Bye

Hilarious!

#171 Metaxa on 02.08.17 at 6:55 pm

Kevin:
Let me destroy that whole speech. There is a South American rum I like. Its $4 there. Retail. HERE….its $40. There is no way there is a 1000% markup and shipping. Not a chance. You can buy Olive Oil and other “shipped” glass goods for “dollars” yet somehow this booze goes from $4 to $40?

The govt does not play fair. The whole process is entirely corrupted. And the faster it gets into the private sector the better.

Real easy solution, if you can barely afford the $40, go there and buy it where it is cheap. Enjoy the schools, roads, medical care and such while you are there.

IHCTD9:
Private US store had a hot young Latina chick working the till.

LCBO had a quad-chinned corn fed heifer who’s been working there for 30 years.

Are you really happy with that statement? C’mon, its 2017.
Plus I’ll bet that Latina chick had a dick…but you’ve probably fallen for that one before, eh?

#172 PGer on 02.08.17 at 7:04 pm

Well, I guess my strategy will be to convert everything in my taxable account to dividend/ income stocks and ETFs. Get rid of the BRK.B and other growthy stocks and invest in more preferreds and the like. Then use some of the accumulated cash each year to keep our TSFAs maxed out forever.

Of course, then I expect the Libs to come after the div tax credit – can’t win with the socialists (but maybe they’ll disappear after everyone and the country is broke).

#173 for those about to plop on 02.08.17 at 10:14 pm

I spent the vast majority of my day watching the purple hued, pink tinged snow falling down. Or maybe I was imagining things after heavy use of my bong.

Many of you read every post I make here, I know this because even there is no post counter and the blog gets updated every day. Or maybe it’s because of heavy use of my bong.

There are a few flips in my area that is causing the owners stress. I know because I have set up a telescope from across the road to spy on them in their bedroom.

More to come.

#174 Doghouse Dweller on 02.08.17 at 10:43 pm

The true deplorables ~ Bomdardier the company’s dual-class shares, which keep control of the company in the hands of the Bombardier-Beaudoin family. Never ending , million and billion dollar welfare cheques for private company execs that should have been bankrupted or jailed decades ago.

And you’ve been picking on broke ass OAS seniors ?

#175 aa3 on 02.08.17 at 10:52 pm

Desperately raising taxes to sustain public spending, and pumping up a huge real estate bubble to maintain a standard of living through debt.. are the last moves of failing states everywhere.

To carry out the reforms to come, politically will take a severe financial crisis, probably including either a hyperinflationary printing and runaway interest rates, or a massive debt default and write down of the assets and liabilities in the country.

The public sector wages will have to be brought in line with norms in the private sector, and the goals and programs of the state dramatically reduced, as the headcount is reduced.

Things like public pensions, public employment, regulations, licenses, endless legal restrictions can all be changed with the stroke of a pen.

Soon we will see the various special interest groups turn on each other to fight for the scraps.

#176 NotaTaxpayer on 02.09.17 at 6:00 am

OAS is not welfare for ‘seniors’….it is a tax refund for money that was collected illegally during a person’s working years. Did anybody get asked to bomb Afghanistan or any other fiasco Canada is involved in, etc etc. Canada has enough wealth and generates even more….of that every Canadian has a share, but what happens?? The wealth of Canada gets plundered by a few, who pay little , if any for it. To call OAS welfare is an insult by totally clueless, obedient sheeple. Hope you love being taken to the cleaners by your owners.

#177 Rebs on 02.10.17 at 12:39 pm

RE: savings, I think the disconnect might be in the vocabulary we use.

“Saving” money used to mean putting it aside and reaping a decent percentage in a bank account (if you wanted to stay very conservative)

To generate any type of (worthwhile) “savings” in today’s economy actually requires “investing”, and could more accurately be described that way.

Therefore, do you have any BASIC advice on how to begin investing (as opposed to “traditional savings”)

If you have only 10-15K per year to invest, and do not have the time or resources to do it yourself, who do trust? (not people at the bank)
If a fee-based adviser, what fees would be reasonable?
Do fee-based advisers take on clients with low savings like that?
What do you look for?