Revenge

You probably don’t work for Sears Canada, but should know about it. What a mess. A tragedy in historic and human terms. The news Tuesday was the worst possible. All remaining stores will be shuttered. All staff punted. Astonishingly, that’s 12,000 people – ten thousand more than expected to be terminated a week ago.

Why Sears failed is largely irrelevant. Online killed it. The company didn’t sell enough of what people wanted. Huge structural costs for real estate and payroll benefits were unmatched by revenues. Senior management included a few losers and twits. Nepotists, too, by some accounts. Like every business that croaks, whether a corner hardware store, car dealership or national chain, its customers drifted away to something better. They had no allegiance. Does anyone these days?

Well, it’s one of the largest layoffs in Canadian history, but not the last such event. It reminds us of actions we should all take to prepare, especially if you’re in a sunset occupation like retailing, manufacturing or (of course) blogging. In a few minutes, a personal checklist for employees who never want to be Searsed.

Started in 1858, it’s now been granted the legal right to die. Long discussions with the last exec standing, Brandon Stranzl, failed. Nobody else wanted the carcass so it ended with sixteen words: “The company deeply regrets this pending outcome and the resulting loss of jobs and store closures.”

Company creditors are hungry for liquidation and the chance to secure a few pennies on the dollar. So long as Sears was operational, it was losing a million a day and just digging a deeper hole. Among those creditors are the jilted employees, but they’re SOL.

Workers are owed hundreds of millions in wages and severance payments but many will receive next to nothing. Even money placed into the company’s defined-contribution plan is in jeopardy, with some pensioners being told they can expect only a fraction of what they’d counted on. The plan is apparently under-funded, and now its corporate sponsor is kaput. Ugh.

Amid news departing execs were getting big cheques, Stranzl ignited a social media storm by establishing a ‘hardship fund’ of $500,000, available to help people whose lives had been shattered by the corporate news. Five hundred grand – to be shared by thousands of people. A joke. No severance payments meant EI became a necessity for most, so accepting any additional money, no matter how puny (the max offered was $1,200 a week for two months), might jeopardize benefits. No wonder only two dozen people have asked for a few bucks.

What can be done personally to protect against this kind of misfortune? (And, no, going NDP ain’t the solution, no matter what that Jag guy says.)

Most importantly, you need a Plan B. DC corporate pensions are inherently wonky, nothing more than glorified group RRSPs which often end up in a bunch of under-performing mutual funds. When even a corporate titan like Sears can fold, exposing an under-funded plan that immediately warns members of benefit cuts, nobody’s safe. Do not make this the pillar of your retirement income plan.

Everybody should strive to maximize their TFSAs, then ensure the money stays in there,  invested in diversified growth assets like equity ETFs. Remember – a hundred bucks a week invested here for 30 years making 7% will end up being $532,000. That should yield an annual income of $32,000 without depleting the principal and without reducing your CPP or OAS payments by a single penny. So this is job one.

After that, shovel cash into an RRSP, using the refund to contribute to the TFSA. Unless you have a defined-benefit pension (guaranteed, stable employer-funded payments), this is an excellent way to reduce tax, invest for tax-free growth then support you efficiently when some dingdong CEO destroys your employer.

Obviously having a cash reserve for an event like this would be a great idea, but establishing a personal line of credit in advance is almost as good. It costs you nothing to set up at the bank, zero to carry and can be tapped only as you require it. Go, get one now.

Worst hit among Sears employees, it goes without saying, will be those who listened to the house-humpers on this blog and bought a property in the last couple of years, depleting their liquid assets and taking on big debt. Now that the market has turned in many places, houses are harder to sell and worth less. Banks are vicious about appraisals, plus mortgage rates are rising and the new stress test looms. Being house-rich and cash-poor after you’ve lost your job is the definition of misery. Get out if you can.

The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation. Your employee friends will hate you, and vote for Justin & Bill. Still worth it. Now and forever.

 

 

281 comments ↓

#1 Bezengy on 10.10.17 at 6:32 pm

Seems to me T2’s house of cards is collapsing. I think we’ll be lucky to even have a country left when he’s done. Big problem with the cancellation of the Energy East project and Western Canada now realizing they’ve been had and their 200 billion donation to the rest of Canada over the last 20 years was indeed just that, a donation. When they call on fellow Canadians for a little help, no one picks up the phone so to speak. I would be very surprised if we don’t see an “us first” approach from Western Canada going forward, and I can’t say I blame them.

#2 Howard on 10.10.17 at 6:38 pm

Not to worry, when Amazon picks Toronto as its second HQ it will replace those jobs many fold.

#3 AGuyInVancouver on 10.10.17 at 6:43 pm

Always found it ironic that Sears, the company that revolutionized retailing with the catalog, floundered in the online world. Waiting for the Sears Wishbook was an annual Christmas tradition. And until recently Sears was the “go to” place for major appliances, how did they squander that?

It is heartbreaking for the employees, especially when it seems the parent company had zero interest in seeing the Canadian arm succeed. Rather, it was merely an asset to be stripped.

#4 Say no to 50 cent Loonie! Tell that to Poloz! on 10.10.17 at 6:44 pm

But I thought the other blogger Better Dwelling assured us that over 50% of Mr. Wong’s sample population in Toronto consider Toronto real estate “cheap”, and that everyone in Toronto are Managers, Professional Corporation and Millionaires in a world class city….NOT!

Let the real estate collapse begin! I want to see these Yuppies crying over spilled latte when their financial situation goes deep into the sewage!

These Toronto Yuppies and Millennials need to learn how to be humble! They are part of the problem when they offer to pay $699,000 for a dog house on Garth’s farm if it was located in “world class” Toronto.

World class, my foot!

#5 Hans on 10.10.17 at 6:44 pm

“The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation. Your employee friends will hate you, and vote for Justin & Bill. Still worth it. Now and forever.”

…until the rules change and your small business gets nailed with surprise tax changes. Then you too, can join the ranks of house poor and heck, maybe even qualify for the minimum basic income lottery in Ontario.

#6 Eric Y on 10.10.17 at 6:45 pm

Garth,

Insert the opening praise: Love your blog, been following it for many years.

Now into the question – it was mentioned how the DC plans of employees are in jeopardy due to under-funding (para 6). I thought once DC plan dollars were paid to the employees it would be untouchable by Sears as it is deposited into a registered plan under the employee’s name. How would other parties cash grab established DC dollars?

Defined benefit plans I can for sure see getting destroyed.

Thanks,

#7 TnT on 10.10.17 at 6:50 pm

I knew Sears was doomed when in March of 1995 I bought replacement wheels for a Sears lawn mower via phone / catalog and they showed up in October, well after grass cutting season.

#8 Jerry on 10.10.17 at 6:52 pm

Very sad day, I feel for all of them good luck going forward.

#9 Buster Baxter on 10.10.17 at 6:54 pm

Very sad news for the thousands of Sears employees who have lost the financial security of their pension. Beyond one’s health–and that of their family–it can’t get much worse. I imagine the lion’s share of those affected are female, so hopefully spouses/partners can fill the financial void.

#10 Jungle on 10.10.17 at 6:55 pm

Sears employees can afford houses ??

I though retail was minimum wage.

#11 Screwed Canadian Millenial on 10.10.17 at 6:56 pm

Don’t get mad at me Garth but perhaps it’s time to admit there is no labour shortage in this country. There’s a job shortage and a wage growth shortage. We are entering an era where there is less and less demand for labour and yet we continue importing more of it than ever. Makes no sense. We all know it. Its not racist to say that. It’s time to scrap the TFW program and all its evil anti-Canadian sister programs and dramatically reduce immigration levels. We dont have the jobs for the sheer amount of people we are importing and real wages are stagnant at best while cost of living skyrockets.

#12 Lost...but not leased on 10.10.17 at 6:57 pm

U snooze U loose

#13 Smoking Man on 10.10.17 at 6:58 pm

The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation. Your employee friends will hate you, and vote for Justin & Bill. Still worth it. Now and forever.
….

Amen

#14 MPAC on 10.10.17 at 7:00 pm

@ Eric Y#6

You’rr right, the funds are untouchable.

#15 Tim on 10.10.17 at 7:01 pm

Saving for 30 years would produce an inflation adjusted income of about $15k–not $30K, assuming 2.5%/yr.

Now why would anyone invest for 2.5%? – Garth

#16 SimVan on 10.10.17 at 7:06 pm

Does anyone else feel like the only message we hear from every level of government in Canada is TAX TAX TAX TAX TAX!

It is relentless.

http://www.cbc.ca/news/politics/revenue-canada-employee-benefits-tax-1.4348076

#17 Lost...but not leased on 10.10.17 at 7:06 pm

Come to Richmond, BC. population 220,000

ZERO dept. stores
Woodwards went bankrupt in 1992
Eatons went bankrupt in 1999

Sears left in 2015
Bay is simply a glorified fashion store
Zellers is gone
Target didn’t last a year

ZER0 movie theatres in City Center
ONE Dairy Queen….

City Center is effectively gutted of major chains and businesses

#18 Protea on 10.10.17 at 7:10 pm

A real tragedy so sad for the employees !! we are all too blame for not supporting Sears and shopping their. Now we have the potential of Trudeau and Morneau worsening the the economic status in Canada by some of their draconian proposed legislation !

In all the time that these two bonzos have held the reins of power they have done nothing to encourage the economy in our country, makes me want to puke when the terroist receives over 10 million from the Feds and these poor soon to be ex. ees receive nothing and even their pensions are in jeopardy hopefully that excludes any $$ contributed by themselves.

#19 Dragonslayer on 10.10.17 at 7:15 pm

Really sad news. Feel for all those employees, especially those on pensions through Sears.

We need to revamp our pension legislation so this kind of thing cannot happen. Pensions should be guaranteed to be solvent for the lifetime of the participant.

It is beyond cruel that so many retired employees will lose most or all of their pension especially as it is too late for many to recoup their losses by finding other employment.

And given that line staff did not earn huge dollars when they worked it is fair to assume they really depended on those pensions.

Yet another instance of privatizing the profits and socializing the losses.

#20 jess on 10.10.17 at 7:17 pm

embedded commissions

…” England, continental Europe and Australia banned embedded commissions several years ago.”

http://www.cbc.ca/news/canada/british-columbia/financial-advisor-earns-quarter-million-in-commissions-1.4328616

#21 HELOC on 10.10.17 at 7:18 pm

I am sure some of sears workers have taken money out of HELOC and gave it to their kids to buy condos. Hope they did not follow Garth’ s advice and bought their house years ago and have significant equity in them.

#22 Debtslavecreator on 10.10.17 at 7:19 pm

And if you become BFS make sure it’s as a Sole Proprietor, not incorporated
Better yet talk to an experienced and reputable tax lawyer once you make the big bucks and see if there are better options

#23 prairie person on 10.10.17 at 7:19 pm

Immediately after I retired, I took my pension money and transferred it to an independent financial manager at a major bank. Two years later, the company I worked for and which self-managed the pension fund, lost fifty percent. If you have a pension and get the opportunity, consider doing the same. There are exceptions, however, in which funds have been well handled over the years. Still, earning one’s income from and having one’s funds managed by the same entity has certain risks.

#24 Lost...but not leased on 10.10.17 at 7:19 pm

The downfall for most department stores was likely the rise of Big Box stores/category killers….like Toys R Us, Best Buy etc.

As well, new demographics took over that the traditional customer base eroded.

The End…

#25 Tbone on 10.10.17 at 7:20 pm

Sears was the pioneer of e commerce with that huge catalogue business.
I recall their catalogue in the 70’s . My mother that could hardly speak any English would order stuff on the phone. A week later we got a parcel
delivered to our door .
You would think they could of built on that to become an amazon before amazon .

#26 Keith on 10.10.17 at 7:25 pm

Retail as a working career died a long time ago. I remember people working in B.C. as grocery clerks in the early 80’s pulling down $17 per hour and living a proper middle class lifestyle. Those days are long gone. Imagine that wage in today’s dollars.

Today even the large retailers are rife with minimum or low wage positions, often part time with no guarantee of hours in a week, and little in the way of benefits. A sad commentary on the largest category of employees in Canada.

There are many who read this blog (not our host) who will say that retail workers are unskilled, and do not deserve to earn a living wage. Well, if it was ok for unskilled mill workers and factory workers to earn a decent living, why not retail clerks? Oh yeah, retail employees are mostly female. That makes it right.

Garth’s conclusion is probably the harsh reality of our time. As a computer programmer, you can be outsourced to India for less than a living wage in Canada. I asked an engineer why we had to pay him so much money when there were better ones in India we could email the projects to. He replied that they weren’t members of the Professional Engineers society of B.C., so they weren’t permitted to work here.

In an online global society, an old school job with a large employer no longer has the “security” it used to. Today the bell tolls for the workers for Sears, but in reality it tolls for everyone. Lower paid, lower skilled workers are the first to go. They will not be the last.

#27 Smartalox on 10.10.17 at 7:26 pm

I don’t think that it is a ‘black and white’ choice between being an employee in a 20th century business, with a 20th century defined benefit plan, and being an entrepreneur.

Garth makes it seem like being an entrepreneur means that the sky is the limit, and it’s not. While some business owners are successful enough to be threatened by the proposed tax rule changes, there are a great many more that fear any tax hike because they’re barely making a living after costs, and wont’ be able to afford to pay any more.

‘Artisanal’ is just a classy-sounding word for ‘Subsistence’. An entrepreneur’s goal is to make money: if you’re not doing that, and you don’t have a backup plan to monetize what you’ve built by expanding, franchising, or selling the business outright, then you don’t have a job, you have a hobby.

And that’s okay; between working for a corporation that’s on life-support, and eating what you kill, there are a great many Canadians who work for corporations and manage their own retirements – doing without defined benefits, to stuff RRSPs, TFSAs and the odd un-registered account in order to save for their retirements.

And yeah, there are job losses, and career transitions, for regular employees, but there are also stock options, severance payouts, vacations, and not having to chase anyone down in order to get a paycheque.

#28 Tom from Mississauga on 10.10.17 at 7:26 pm

A posting on Sears but none on the Cami strike. A far more important event. Oh wait, you don’t like The Donald just like the MSM and won’t report on it either. There’s still the London Free Press.

#29 Ex Pat Canuck on 10.10.17 at 7:28 pm

Agree entirely about going into biz for yourself. I did it, left the relative safety of a guv job in the western US, and I can’t tell you how satisfying working for yourself can be. I never wanted to grow my business to hire anyone else, which works great for me as what I make and sell keeps me as busy as I want to be. I lstarted my company in October 2008, yep, a week before the Great Housing Bubble in the lower 48 burst. Had to work my fingers to the bone to build the business (no joke, I am a potter) but it was the best investment in myself ever. I now take the summers off, work my tail off from Labour Day until Christmas, and have a steady go at it from New Year’s until mid June. Oh, and having a state pension (which I now draw, but don’t spend, it goes 33% into investments and 66% into savings is way cool.) Pretty sure I would have had a stroke or heart attack if I tried to tough it out in my old job until I reached retirement age, there are so many truly unhappy folk working in government careers, just putting their time in waiting to retire.
So listen to Garth, take a chance on yourself, believe in yourself and work at what you have always wanted to do. The only thing stopping yourself is your doubts. Kick them aside and work your butt off. You will make your life the amazing life you have always dreamed of.

#30 Smartalox on 10.10.17 at 7:30 pm

Sears Was the Amazon of its Time – Until it Made Preventable Mistakes

https://www.theatlantic.com/business/archive/2017/10/amazon-sears-mistakes/541926/

#31 Doug t on 10.10.17 at 7:30 pm

Sears, like Canadian Tire has always been a “go to” for me and my family growing up – getting their Christmas catalog as a kid was an exciting start of the season – I’m saddened by the evolution of technology and the changes it has brought that have negatively impacted the world – goodbye Sears and thank you for all the lovely memories from my youth :(

RATM

#32 pay your taxes on 10.10.17 at 7:31 pm

“Worst hit among Sears employees, it goes without saying, will be those who listened to the house-humpers on this blog and bought a property in the last couple of years, depleting their liquid assets and taking on big debt”

Without a doubt. And the best off are those who bought a house ten or more years ago and have a sick amount of tax free equity. They can flog the house and bit etfs with that million. How many years does it take a retail worker to save that much after tax income? It isn’t possible.

Self employment is the way to go if you’re more of an entrepreneur than a technician. Managing people and groveling to the banks certainly isn’t everyone’s cup of tea, but they will be much better off if they can manage it. Just don’t start any business without a hefty chunk of start up money because the first years can be pretty rough (as Garth has alluded to during his Corporate Death Watch posts).

#33 crowdedelevatorfartz on 10.10.17 at 7:31 pm

@#2 Howard
“Not to worry, when Amazon picks Toronto as its second HQ it will replace those jobs many fold.”
++++++

Hmmm lets see.
Canada
A country that is ramping up personal and business taxes. While the US is dropping theirs.
Toronto
A grostequely overpriced city that is still in the midst of a housing fandango.

Nah.
Boston’s my bet.

#34 The Great Gazoo on 10.10.17 at 7:32 pm

“The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation.”

I would qualify that recommendation. My Father was a skilled trades person that tried to run his own business and failed. It happened over more than a decade and took a huge financial and emotional toll on him and the entire family. He simply did not have the broad range of skills that are needed to run your own business.

In my view we all have our “territory” and for many running your own business would be a big mistake. My Father would have done very well being a skilled tradesman working for others.

I offer an alternative approach.

To maintain your job security develop marketable skills, always be learning and staying relevant to the work you do and the rapidly changing world we live in – build and maintain a strong network.

In addition, live within your means, save and invest in a balanced and diversified portfolio as Garth has recommended countless times and you will do well. Your stress levels will be lower knowing that if you get “Searsed”, you have the skills and network to draw on to secure your next job.

#35 bellend on 10.10.17 at 7:40 pm

sears from catalogue kings to computerage klutzes..more to come eh?

#36 Nonplused on 10.10.17 at 7:42 pm

“The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. ”

Except that Turdeau and Moroneau don’t want you doing that anymore so they are going to tax your small business away. They need the money so Bombardier can build planes for $33 million and sell them for $20 million. I think the plan was to make up the difference on volume, volume of diverted tax dollars that is.

PS Garth I know you don’t like making specific predictions other than say housing and markets but you can accept my prediction then: Bombardier will get Searsed soon enough, I set the countdown at 2 years but it’ll be right about there. The US is not going to let the C-100 series in on a subsidized basis anymore and that is Bombardier’s major market for that plane. Air Canada doesn’t even buy them on mass, preferring offerings from Embraer and Airbus.

#37 joblo on 10.10.17 at 7:44 pm

“The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation. ”

or get a job at Bombardier, they always get bailed out.

#38 crowdedelevatorfartz on 10.10.17 at 7:45 pm

And as the housing prices drop …..things begin to “heat up”

http://www.google.ca/url?url=http://www.cbc.ca/news/canada/british-columbia/port-coquitlam-fire-1.4347423&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwijspSlnufWAhVjrVQKHftmBNcQqQIIFzAA&usg=AOvVaw3DfTbbGnc8ykDaTZhbCSkS

Reminds me of the 1980’s……… unexplained construction site fires…….all….over…..the…..city.

#39 Willy H on 10.10.17 at 7:45 pm

Why Sears failed is largely irrelevant. Online killed it.
___ ___ ___ ___ ___

Actually, I would disagree that it is irrelevant.

How ironic that a retail titan which grew into a major retail player as a result of the mail order catalogue is taken down by a 20th century electronic version of the very same thing upon which it’s success had been largely based.

It’s a bit more complicated though.

The real truth fits the narrative of the growing chasm between the have’s and have-not’s and a slowly dying middle class who frequented the post WWII department store en masse.

The have’s shop were they please and have-not’s shop at Walmart, Dollarama, Giant Tiger and Outlets.

Sear’s decline is almost directly correlated with the rise of Walmart and dollars stores in North America.

I hope that our retail sector can absorb the lion’s share of these unfortunate folks.

There is a lot of retail square footage about to open up when a bricks and mortar presence looks increasingly threatened by the internet. Many Target locations are still looking for love.

#40 Grumpy Cat on 10.10.17 at 7:46 pm

Good.

#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm

#26 Keith on 10.10.17 at 7:25 pm

There are many who read this blog (not our host) who will say that retail workers are unskilled, and do not deserve to earn a living wage. Well, if it was ok for unskilled mill workers and factory workers to earn a decent living, why not retail clerks?

——————————

Great post Keith. You nailed it. Most of these ConBoomers don’t want anyone to earn a living wage. They love keeping as many people poor and in poverty as possible. They love it. They get off on it. It brings them joy. It’s not like they hide their pleasure. Look how triggered they get by an increase in the minimum wage. Nothing triggers BoomerCons more than rising wages for the hard-working Canadian men and women of this country.

Do that again and you are gone. For good this time. — Garth

#42 Stone on 10.10.17 at 7:51 pm

“The best defence against being Searsed is to never let anyone fire, terminate or lay you off.

Nothing to be done for the above. If it happens, it will happen. Even the self employed are prone to be made obsolete, more often than many will admit.

The best defence is to save and invest your disposable income after you’ve paid for your necessities. Truely, save more than you spend. If your job doesn’t pay you enough to do that, fund a new job that will. Grow that investment, whether in a TFSA, RRSP, or non-registered account. Don’t be greedy and instead invest it in a balanced and diversified portfolio. Do this every year. Ensure you still allow yourself to spend money on some dicretionary things like a vacation or some toys (after all, life is about living), just don’t overdo it.

At the end of the day, the only person who cares about you is you and your loved ones. Your loved ones may not be able to bail you out financially so make sure you set yourself up not to have to need that handout if you can help it.

As mentionned above, dufus executives and CEOs couldn’t care less about any of us. Never rely on them. “The company deeply regrets this pending outcome and the resulting loss of jobs and store closures.” As the company is not human, it can regret nothing. It’s telling that Brandon Stranzl couldn’t say he actually regretted anything. Absolutely no moral fortitude. The executive way at its finest.

To reinforce my point, plugged in the numbers for my portfolio and currently sitting at 7.48% YTD with all distributions considered. Last Friday, it was at 7.18%. Feeling good. Should the same happen to me like those poor Sears employees, at least I have a safety net to rely on with steady distributions. I just hope some of them did the same.

#43 Long Branch Apprentice on 10.10.17 at 7:52 pm

#11 Screwed Canadian Millenial

Yes. Seen it with me own eyes.

#44 Pete from St. Cesaire on 10.10.17 at 7:55 pm

Why Sears failed is largely irrelevant. Online killed it.
————————————————————–
Not irrevelant at all. Online killed it, and will kill most of the others too. Grocery stores will survive, but once they implement their ‘cashless’ society I’ll only buy my groceries from places that let me buy on-line and deliver.

I’m glad to see Sears go. I wish many others would follow A.S.A.P. These jobs are doomed in the long run and there is no point in prolonging the misery. The western world has moved past this type of business model and the rest of the world is about to. The aftermath of the upcoming collapse would be the ideal time to restructure the working world (work from home, shop from home, ‘vacation’ from home, etc.). It would be a terrible thing to try to rebuild the former system on the ashes of itself; cut the waste, downsize, and automate now. And one of the bigest wastes are the brick & mortar shopping emporiums.

#45 Linda on 10.10.17 at 7:57 pm

Regarding DC pension plans & the possibility of creditors the information I found was that DC plans are protected from creditors to the extent offered under legislation. Since Canada has little in the way of legislation to protect pension plan contributions I’m afraid Garth is correct when he states that the Sears pensioners & members may not receive the benefits they were expecting. Even if what is left in the plan is left untouched it is reported to be underfunded. So if there isn’t enough money to pay the pensioners the full amount of the obligations owed, the outcome is going to be paying what the plan can afford. That almost certainly means the amount of pension being paid will be reduced to those who are already retired. Those who are not yet retired may or may not be able to get anything near what they contributed back once the dust settles on this one. After all, DC plans do not provide a guarantee of benefit the way a DB plan does. And there are plenty of DB plans over the years that have had to reduce or curtail the benefits the members signed up for because the funds simply are not there.

#46 crowdedelevatorfartz on 10.10.17 at 7:58 pm

@#17 Lost and not Found
“City Center is effectively gutted of major chains and businesses”
+++++++
Pray tell, where , if ever, was Richmond City “Center”? Lansdowne Mall?

Lets face it Richmond is a burb of Vancouver, as is Surrey, Burnaby, Coquitlam, etc.
Some of the other municipalities like the one’s on the North shore have enough of a physical disassociation from Van to pretend they arent also “burbs”.

Amalgamate the entire inefficient mess into one city called Vancouver ( as all others from anywhere else on the Planet call it) and save money from the removal the duplication of services. ie Mayors and clowncillors”

Before……the Province….in a fit of fiscal sanity……does it for them.

#47 Rexx Rock on 10.10.17 at 8:02 pm

My conserative balanced portfolio lost 1.8% in the last 6 months.May bite the the bullet and just put all my money in the best gic.Not much you can do,the central banks hates savers and pensioners who want to play it safe in our later years.

If you lost money you do not have a balanced. A 60/40 is up about 7% on the year. — Garth

#48 TnT on 10.10.17 at 8:06 pm

The worse is yet to come.

AI and Robots are coming, no jobs are safe.

There is a reason Western Civilization is piloting guaranteed minimum income programs.

Some say this “free time” will unleash the true creativity of the human mind and spirit.

That scares me because there is no limit to how evil humans can be.

#49 Stone on 10.10.17 at 8:06 pm

Protea on 10.10.17 at 7:10 pm
A real tragedy so sad for the employees !! we are all too blame for not supporting Sears and shopping their. Now we have the potential of Trudeau and Morneau worsening the the economic status in Canada by some of their draconian proposed legislation !

In all the time that these two bonzos have held the reins of power they have done nothing to encourage the economy in our country, makes me want to puke when the terroist receives over 10 million from the Feds and these poor soon to be ex. ees receive nothing and even their pensions are in jeopardy hopefully that excludes any $$ contributed by themselves.

—–

Trudeau and Morneau have nothing to do with Sears collapsing. Sears did not adapt or modernize with the times. Stupid, arrogant, overpaid executives without vision or skill to execute a strategy are to blame. Nothing more.

How many times do I hear on this blog how gouvernment should keep its nose out of the private sector? For the most part, they are right except when fundamental human rights abuses occur. The free market does its own thing and the companies who can’t cope with change get weeded out. That’s what happened to Sears. They offered shoddy products, offered sub par customer service and no one was at the helm to correct this behaviour. As a result, consumers rightly shuned the company and its products and services. It’s too bad so many employees lost their jobs but it’s not right to blame the Liberal gouvernment for that.

Get some perspective. Your attitude is part of the reason Sears failed. Unfortunately too many people subscribe to your way of thinking. Just because so many like you think this way doesn’t mean it’s true or a fact. But hey, that’s only my humble opinion. What do I know? I’m only on the cusp of being a self made millionaire. Then again, maybe I know a lot more than you can imagine.

#50 Mattl on 10.10.17 at 8:09 pm

Events like the Sears bankruptcy only enforce what guys like Trudeau and Singh are preaching. Companies like Sears make hundreds of millions of dollars and suck up even more in tax breaks and subsidies yet the minute things go wrong cut and run leaving the Gov holding the bag. No one really believes anymore that the “job creators” give a squirt about the people they employ.

Sears lost over $1,000,000 per day. Stop with the fake news. — Garth

#51 FOUR FINGERS WATSON on 10.10.17 at 8:10 pm

Sad to see all those people losing their pensions and their jobs. Sad to see Sears bite the dust too, but their business model didn’t work in this brave new world. You either adapt or die.

#52 Stone on 10.10.17 at 8:10 pm

#23 prairie person on 10.10.17 at 7:19 pm
Immediately after I retired, I took my pension money and transferred it to an independent financial manager at a major bank. Two years later, the company I worked for and which self-managed the pension fund, lost fifty percent. If you have a pension and get the opportunity, consider doing the same. There are exceptions, however, in which funds have been well handled over the years. Still, earning one’s income from and having one’s funds managed by the same entity has certain risks.

—-

Smart and wise. Well done and good for you. You recognized the risks and made a decision that would protect you. I wish more people thought and planned things out like you.

#53 Wrk.dover on 10.10.17 at 8:11 pm

First story I read like this was Studebaker/Hamilton Ont., 1964.

These stories are becoming more and more frequent.

Firestone/Woodstock Ont., yesterday.

Back then it was progress, in land of low cost of living.

It is now mostly about the lack of disposable income.

(but Sears was not managed at all, in this instance)

Six figure income recipients disagree totally.

So did Marie Antoinette, when the topic was a more advanced form of starvation.

#54 None on 10.10.17 at 8:12 pm

What’s with the non stop TFSA jumping? Sure they are great but the RRSP in many cases is greater. Sure less flexibility but better tax protection and something to help from dipping in every time you want can be perceived as a benefit.

RRSPs are fine for certain uses, but they make after-tax money taxable again. — Garth

#55 Arempi on 10.10.17 at 8:16 pm

Amazing to see that many major stores are closing, pensions are drying up, social security in the US is now paying pay more than is contributed. The US markets are being bought up by Swiss central bank money, companies are buying back their own shares because the public doesn’t want them. There is no true price discovery for anything anymore and creditism is the reason for the distortion. When the next major calamity hits, it will be global. When the debt bomb goes off, the governments will turn to you and your TFSA. They will claw at private money as they have done already in other parts of the globe. Old school retirement planning in this new environment of endless global credit expansion, the absence of capitalism will only lead to the biggest lines in the soup kitchen’s history.

Who let you in? — Garth

#56 AGuyInVancouver on 10.10.17 at 8:17 pm

#17 Lost…but not leased

Not quite true, Richmond has a Hudsons Bay Co.

#57 crowdedelevatorfartz on 10.10.17 at 8:17 pm

@ Trumpocalypse2017

IM VERY DISAPPOINTED IN YOU TRUMPY!

What about THIS?

https://ca.reuters.com/article/topNews/idCAKBN1CF2QG-OCATP

and then THIS?

https://ca.reuters.com/article/topNews/idCAKBN1CF368-OCATP

Where you been?
Stuffing the bunker to the rafters with Rice, beans and water?
Too busy to check the “net”?
Yer supposed to warn us !

Geez.

#58 the ryguy on 10.10.17 at 8:18 pm

Totally agree with SCM. I strongly disagree with the notion that we are better because of “diversity”. Im not racist in the least, but our most conservative option in the upcoming election wants to cap immigration at 250k/year. Read that again. That’s 1M every 4 years & thats our most conservative option.

Really, is Canada producing that amount of jobs? What a joke. Gotta fix your own house before you can help others.

And you know what else, all you trump haters, he takes on companies and tries to save jobs. I know Sears is a different situation as jobs aren’t being relocated, but he has talked multiple times about the jobs that amazon has destroyed. Trump has been beyond charitable his entire life and seems to legitimately give a sh*t about regular people.

You think T2 gives a rats a** about any one of you? Liberals are a disease. People need jobs, lets quit with the 250k/year government funded diversity coordinators and stop stealing our money.

#59 Lost...but not leased on 10.10.17 at 8:23 pm

Sears layoffs (at least in short term)
= 12,000 people on UI,
= 12,000 paying less taxes
= 12,000 less employee discounts for CRA to tax

=ripple effect impacting other employees/other support-contractor companies in the chain

As others have posted…Sears was originally a catalogue business that later became bricks and mortar…(they even sold pre fab kit homes you ordered, delivered on site and assembled).

Sears entered Canada in 1952

IMHO this begets the question….what’s the tipping point whereby so- called efficiencies (ie on line shopping) create a large underclass of employed that overwhelms those that are employed.

#60 Duke on 10.10.17 at 8:24 pm

#2 Howard on 10.10.17 at 6:38 pm
Not to worry, when Amazon picks Toronto as its second HQ it will replace those jobs many fold.
———————–

You must be on drug if you believe that Amazon will have their 2nd HQ in Toronto. They will never ever consider having their HQ crossed the border. Many Torontonians wish it happen, but there are simply too much burden to make it real.

#61 Unlucky on 10.10.17 at 8:24 pm

Harvey must be one of the most unlucky deplorable in history.

Reportedly he grabbed all he could for decades, yet apparently he was always refused and never got any.

#62 Entrepreneur on 10.10.17 at 8:25 pm

That is sad and hard on people when they lose their jobs.
And in difficult times and where to go next, grim.

Fairytale land starting a small business with taxes on taxes, endless paperwork, and total burnout with next to nil support and the CRA breathing down your back for errors. And emotionally draining, an unhealthy environment. Unless a backup financially or plan. Good try to ignite the spirit but that is “long-time gone.”

I have to agree with #11 SCM on this one…”job shortage and wage growth shortage” and on TFW. Work with the people within the nation first. And with that thinking comes products that their produce which should come first before another country.

Build a nation, not destroy it.

#63 For those about to flop... on 10.10.17 at 8:27 pm

This howmuch article ties in with Thor Turner’s pedestrian effort…

M43BC

“Mapping What Every State in America Is Best at

Company towns used to be a defining feature of the American economy. Nowadays, thanks to globalization and offshoring, it is much harder to find employers that exert such influence over a small town (with a few notable exceptions). That being said, specific industries still tend to grow in clusters and can dominate the economy of a particular region. To understand this new reality, we mapped the most important industries by state according to the U.S. Bureau of Economic Analysis, which takes into account an industry’s collective output as a percentage of the overall GDP. For simplicity, we excluded government jobs and real estate. The result is one of the easiest snapshots of the U.S. economy you will ever find.”

https://howmuch.net/articles/the-largest-industry-in-each-state-by-gdp

#64 Victor V on 10.10.17 at 8:36 pm

Indebted households vulnerable to shock: BOC’s Wilkins

http://www.bnn.ca/indebted-households-vulnerable-to-shock-boc-s-wilkins-1.880723

Canada’s household sector is vulnerable to any kind of negative shock due to its high level of indebtedness, but stress tests show Canada’s banking system should weather a drop in house prices, Bank of Canada Senior Deputy Governor Carolyn Wilkins said on Tuesday.

Speaking at an IMF panel in Washington on financial stability and systemic risks, Wilkins said a lot of the household debt in Canada is concentrated with young or low income segments of the population, as well as in regions with high house prices, such as Toronto or Vancouver.

“In the case of Canada, the vulnerability we’re thinking about right now is indebtedness in the household sector, which has been on an upward trend for a number of years and has reached levels that say to us the household sector is vulnerable to any kind of negative shock,” Wilkins said.

#65 Respect Women on 10.10.17 at 8:40 pm

You need to respect women in today’s workplace if you want to remain employed in your career.
That means that you shouldn’t criticize a woman on how she works, how she performs her duties, how she dresses and forbid any locker room talk which sexualizes women.
Heed my advice, because you have a feminist Prime Minister. You need to respect women as if they are God. Your sons must learn to listen to a woman, even if it goes against your values such as pre-martial relations. Women rule Canada. RESPECT WOMEN.

Shove off, sweetheart troll. — Garth

#66 Lost...but not leased on 10.10.17 at 8:42 pm

Also re Sears layoffs.

Devils deals with Companies and Unions.
In the 1970’s, I had a union job at a local supermarket .
It was P/T…maybe 17 hours a week.

However, even back then change was in the air.
Non Union supermarkets began establishing
themselves.

In the end, what happened was, in order to compete, the older employees in union stores SOLD OUT the more junior ones, whereby a 2 – tier system was developed.

The older union members kept their wages and benefits till they retired….but the more junior and new hirees doing the same job were paid less and with lesser benefits.

The slide to oblivion sometimes is aided and abetted by traitors from within…

#67 Calamity Jane on 10.10.17 at 8:44 pm

re: #11 Screwed Canadian Millenial on 10.10.17 at 6:56 pm
“Don’t get mad at me Garth but perhaps it’s time to admit there is no labour shortage in this country. There’s a job shortage and a wage growth shortage. We are entering an era where there is less and less demand for labour and yet we continue importing more of it than ever. Makes no sense. We all know it”

You are so so so so very WRONG and I say that as a person trying to hire more employees at various levels. The TFW’s didn’t “took er jebs” (South Park reference). Unless of course your career is working in the fields and picking apples all day… that’s what most of the TFW’s around here are doing this time of year. What I find is a huge amount of applicants with a similar mindset to SCM and an astonishing lack of intelligence AND drive – both are necessary to be successful in our organization and pretty much any other job. We have so much difficulty finding reasonably intelligent and reliable employees and we offer medical benefits and a pretty decent pay that puts most of our employees over $100k. We also have a massive SKILLED labour shortage – speak to anyone in the trades and you will know that.

So in summary, you’re wrong. Cut the racist undertones and get a clue, if you someone doesn’t possess the skills employers want they need to get them and stop blaming others for their shortcomings.

Love from another Canadian Millennial who is not screwed and actually living a pretty sweet life… if the tax man would stop screwing with our family business.

#68 MF on 10.10.17 at 8:45 pm

Pretty sad. I remember waiting for the catalogue to come out so I could look at the toy section.

I also remember ordering something one year and having to wait what felt like forever to a 7 year old for it to come in the mail.

As someone mentioned earlier, when Toys R Us came on the scene it was “game over”. I don’t think I ever looked at the catalogue again…well, maybe the women’s bra section along with my newly entered puberty buddies at one point. Meh just being honest.

Anyways, I think we all saw this coming. Sears just was old and tired for the past decade. I rarely went in there for anything. We bought a toy for a friend’s little boy but found out he already had one. The return policy and procedure was a mess. We waited for someone to come to the counter for nearly 25 minutes (seriously).

I guess that’s capitalism at work. A company that became lazy and complacent as it was being made obsolete.

I feel for the employees.

MF

#69 Adrian on 10.10.17 at 8:45 pm

Garth, how can an employer claw back a DC pension? Once the money is in the ‘glorified RRSP’ it’s ours to keep, no?

I said nothing about a claw back. A plan the company does not properly fund is under-funded and if the employer fails, it stays underfunded. Expected benefits do not materialize. — Garth

#70 Bob on 10.10.17 at 8:48 pm

DELETED

#71 meslippery on 10.10.17 at 8:57 pm

No doubt all the job loss will later be blamed on $15.00 per hr.
min. wage…
Also it is said people will lose their jobs if $15.00 is implemented. So you pay people $11.00 to do nothing but draw line at paying $15.00 to do nothing.
Why are you employing them now if you dont need them?

#72 Calamity Jane on 10.10.17 at 8:59 pm

31 Mattl on 10.10.17 at 8:09 pm
“No one really believes anymore that the “job creators” give a squirt about the people they employ.”

… yeah it’s people like you that make it easier to care less and less for employees. You know, when we loan personal money to help out people going through financial hard times from a serious illness or unexpected child care costs or a devastating loss it shows how little we care. When we implement medical and dental benefits for our employees it shows how little we care. When we give advice on tax planning and how to effectively plan for their retirement it shows how little we care. From a business that has never had a subsidy or grant, was privately funded and grown and employees over 30 people directly and 70 more indirectly… My family truly cares about our employees and work their a$$es off to continue providing secure employment and benefits, but with all the “eat the rich” stuff going on these days you start to feel less and less concerned with others who seem to be intent on tearing you down for being successful and insinuate that you must have been crooked to get there.

#73 Screwed Canadian Millenial on 10.10.17 at 8:59 pm

#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm
Do that again and you are gone. For good this time. — Garth

——————-

What did I do wrong Garth? I’m honestly asking. I would like to know. Please tell me. I’m honestly shocked by your threats to ban me.

Sincerely,

Screwed Canadian Millenial

You come here to divide, insult, hector and hate. I’m done with you. Return when you grow up. — Garth

#74 cultural elitist on 10.10.17 at 8:59 pm

@theryguy29
Trump has been beyond charitable his entire life and seems to legitimately give a sh*t about regular people.

A challenge for you: Provide us with one reliably-sourced link that factually demonstrates rump’s so-called charity. If it’s not exclusively self-aggrandizing and self-serving, I’ll eat my tie.

In the absence of such proof (not his statements mind you, but concrete actions), then I’ll stick to my opinion that he’s a self-serving egotistical pig who is completely out of his league in his current employment. Plenty of proof for that, if you look for it. :-)

#75 Gramps on 10.10.17 at 9:01 pm

Guy don’t look too happy while enjoying his “priceless”
moment. Go figure

#76 unfilled $100K jobs on 10.10.17 at 9:04 pm

#66 Calamity Jane

What are those unfilled $100K+ jobs?
Any link for the listings?

Garth reported here a short while ago the overwhelming response he got for one opening, “advertised” on this blog.

None were foreign workers. — Garth

#77 Jeremy on 10.10.17 at 9:05 pm

Garth – you never share your POV on what to do with fixed income. ETFs are easy. What do we do once our TFSA is maxed and we want to keep 40% in FI?

Done and done. — Garth

#78 Cash is King on 10.10.17 at 9:07 pm

Actually, the best defense against being Searsed is to become a CEO.

If you successful, the cash and stock options roll in. If you suck, the up front cash and golden parachute guarantee a soft landing.

Plus Prime Minister Selfie and Poor Bill do not have you in their ever expanding tax sights.

#79 pam on 10.10.17 at 9:09 pm

Who is John Galt?

#80 Smoking Man on 10.10.17 at 9:13 pm

I did another drunken smoking man post on Periscope last night. The difference being I was totally cold stone sober, academy award performance. ButI’ll never get one buy the looks of things going on in Hollywood you need be some sort of sexual deviant to get on the shortlist.

To writers out there what I’m starting to discover, getting good book sales, you definitely need a good product out there. But more important the writer has to be interesting, every time I do one of these I get min 3 book sales. Wierd.

I feel for these millennial lefty kids, no white picket fence is in their future. They blame boomers for their inability to make enough loot for a normal life. They drift toward communism. Their biggest enemy is the globalist. Yet their teachers have them so dumb down that they have no clue they are fighting the wrong enemy. In fact, they are fighting for the very people that fkd up their lives in the first place.

T2 is the globalist poster boy, and he’s not going make your life better. Floodgates are open with TFW.

Getting into the rehab business big time, with some passive investments in the funeral homes for the customers or clients I could not close.

#81 Cici on 10.10.17 at 9:14 pm

#24 Lost but not Leased

Future shop died, Toys R Us has filed for Chapter 11 bankruptcy and Best Buy’s prices are for the most part too high to be seriously competitive. In my area the store is mostly always empty (save for all the employees standing around doing anything but offering to help you), and I have to wonder how solid they’ll be going forward. Well, at least they’ll have more market share and less competition with Sears going belly under, but they’ll probably see that as an opportunity to raise prices to the point of their own extinction.

#82 Steve on 10.10.17 at 9:14 pm

Government changing the rules are risk!
It happens, get over and move on!
The cab drivers saw the change with gov allowing uber.
The dairy, poultry farmers face it with h every possible trade deal.

#83 the problem with Sears on 10.10.17 at 9:19 pm

The problem with Sears may have been that 25 years ago they sold goods that just don’t want to die.

I hate the old Sears washing machine that came with the house, it’s old, old, ugly, unlike the new sexy ones. Worst part of it, no matter what I do, it just doesn’t want to die.

It survived several times many other shiny new appliances in my house, which were successfully built and programmed to be respectful of the principles of global growth and take their fair share in stimulating the economy, just a couple of months after their warranty expired.

#84 Screwed Canadian Millenial on 10.10.17 at 9:21 pm

This is the first time you’ve provided me with this feedback. That was not my intent. I speak often of the need for higher wages for Canadian workers anf am met with a lot of pushback from the crowd here. I apologize and I will try to do better. I would point out that I’m sure you noticed a few of the commenters here come at me pretty hard with a lot of hate, vitriol and childish name calling. I take it all, don’t return in kind, but you don’t say anything to them at all.

You have richly earned their disrespect. By demonizing entire groups of people in such language, suggesting everyone of a certain age takes delight in seeing others suffer, you invite scorn. You have mine. Get lost. — Garth

#85 Bob on 10.10.17 at 9:25 pm

Maybe, just maybe, with the loss of so many jobs in this country and uncertain economic times just over the horizon, perhaps we should re-visit as a country the necessity to import a large influx of people via the TFW program. Maybe?

Enough of his neocon chatter. Canada has created more jobs this year than at any time since the GFC. TFWs are largely here to do the jobs you won’t. — Garth

#86 Smoking Man on 10.10.17 at 9:27 pm

#73 Screwed Canadian Millenial on 10.10.17 at 8:59 pm
#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm
Do that again and you are gone. For good this time. — Garth

——————-

What did I do wrong Garth? I’m honestly asking. I would like to know. Please tell me. I’m honestly shocked by your threats to ban me.

Sincerely,

Screwed Canadian Millenial

You come here to divide, insult, hector and hate. I’m done with you. Return when you grow up. — Garth
…..

Kid, I like your style, but you are a bit troll-like. I get it you want reactions from your posts, negative or positive. But my instincts tell me. You would make a good writer, while you’re in the dog pound penalty box. Use your time wisely, Write a book kid.

Keep it with the lefty leanings your head is currently rapt around, you will get a shit load of more sales than me. Lefty loons love to read.

Deplorables don’t read books, they go to gun ranges for entertainment. But I chose a side. and I’m sticking with it.

Starting to love Country music.

#87 Harold on 10.10.17 at 9:28 pm

Not to worry – Wynne and Sousa will give government jobs to the Sears workers from Ontario in a desperate bid to get their votes.

#88 unfulfilled $100K jobs on 10.10.17 at 9:29 pm

#76 unfilled $100K jobs on 10.10.17 at 9:04 pm

#66 Calamity Jane

What are those unfilled $100K+ jobs?
Any link for the listings?

Garth reported here a short while ago the overwhelming response he got for one opening, “advertised” on this blog.

None were foreign workers. — Garth

========

Perfect! If I recall you were flooded with qualified, competent applicants.

Maybe Jane can find some here, too… Let’s see the listings for those jobs. If it works, Jane can donate to cover your hosting cost for a year.

#89 MSM-Free Zone on 10.10.17 at 9:32 pm

#36 Nonplused on 10.10.17 at 7:42 pm
“….Air Canada doesn’t even buy them on mass, preferring offerings from Embraer and Airbus……”
_____________________________

Au contraire, Air Canada has firm order for 45 C-Series to replace its current Embraer fleet, with options for 30 more.

As well, Air Canada has another order for 61 variants of Boeing’s B737 Max to replace its aging narrow-body Airbus fleet, the first due to arrive later this fall.

#90 Perspective on 10.10.17 at 9:32 pm

Garth it is possible you are confusing DB and DC plas. An old employer of mine has a plan with both a DC and DB component. The guys in the DB plan were screwed when the company went bankrupt. I converted to a DC plan in 1992 and I am good. If this is different than I understand I’d like to know.

Sears plan was DC. Under-funded and benefits will be reduced as a result. — Garh

#91 Lost...but not leased on 10.10.17 at 9:33 pm

#56 AGuyInVancouver

” Hudsons Bay” exists in name only

…my point was it is NOT a department store, which, like SEARS are becoming extinct.

However, even Big Box stores are dying…such as Future Shop…

The 50 acre Lansdowne Mall in Richmond(which once housed Woodwards, Eatons, Zellers, Target, Future shop, etc. )… is no slated for…drumm rolll..more hi density residential

#92 will on 10.10.17 at 9:35 pm

Been shopping at Sears all along. So sorry for Donna in the shoe dept.

#93 SoggyShorts on 10.10.17 at 9:35 pm

#11 Screwed Canadian Millenial on 10.10.17 at 6:56 pm
#32 the ryguy on 10.10.17 at 8:18 pm
#36 Entrepreneur on 10.10.17 at 8:25 pm

In my company (where wages are $40/h for skilled labour) and at the Wal-Mart my friend manages(unskilled labour), foreigners are consistently the better employees. Maybe it’s a coincidence, but both of us have had 10x more problems with 3rd generation Canadian employees. Entitlement, tardiness, unexplained absences, and overall work ethic just doesn’t seem to be there. We are also both ALWAYS hiring, though I’m becoming more and more selective…..

#94 Stone on 10.10.17 at 9:40 pm

#72 Calamity Jane on 10.10.17 at 8:59 pm
31 Mattl on 10.10.17 at 8:09 pm
“No one really believes anymore that the “job creators” give a squirt about the people they employ.”

… yeah it’s people like you that make it easier to care less and less for employees. You know, when we loan personal money to help out people going through financial hard times from a serious illness or unexpected child care costs or a devastating loss it shows how little we care. When we implement medical and dental benefits for our employees it shows how little we care. When we give advice on tax planning and how to effectively plan for their retirement it shows how little we care. From a business that has never had a subsidy or grant, was privately funded and grown and employees over 30 people directly and 70 more indirectly… My family truly cares about our employees and work their a$$es off to continue providing secure employment and benefits, but with all the “eat the rich” stuff going on these days you start to feel less and less concerned with others who seem to be intent on tearing you down for being successful and insinuate that you must have been crooked to get there.

—-

Just curious what field your company is in and what type of skilled workers you’re looking for. Your sincerity shines through. You sound like an employer of choice. Don’t let the dregs bring you down.

#95 Smoking Man on 10.10.17 at 9:41 pm

#85 Harold on 10.10.17 at 9:28 pm
Not to worry – Wynne and Sousa will give government jobs to the Sears workers from Ontario in a desperate bid to get their votes.
….

Free daycare and guaranteed income should do it. The problem for the young millennials who support this. Thier money will come from debt, not taxes from private enterprise. They are all packing up the gold and heading to MAGA.

#96 Andrew Woburn on 10.10.17 at 9:42 pm

For me the irony with Sears is it used to kill the competition with technology. In the early 70’s I was an auditor for a CA firm that had Eatons, then the preeminent Canadian department store chain, as a client. The downtown Eatons was a short distance from the Sears store.

Eatons was a 19th pioneer of catalogue stores and the money-back guarantee. Unfortunately its accounting systems were equally antique. It’s flagship store used a creaky pre-war punchcard system. Sears used computers.

Shoppers used to get incredible discount deals from Eatons. At Sears you were lucky to get 20%. They had computers and market down items every thirty days until they were gone. Eatons had no idea how long stuff had been around until they had to fire sale it.

In my view, Eatons lost it because they were run by a family that no longer cared like their grandfather did and would not let professionals alone to run the place. I can only assume Sears was killed off by a similar complacent refusal to deal with change.

#97 Victor V on 10.10.17 at 9:42 pm

#73 Screwed Canadian Millenial on 10.10.17 at 8:59 pm
#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm
Do that again and you are gone. For good this time. — Garth

——————-

What did I do wrong Garth? I’m honestly asking. I would like to know. Please tell me. I’m honestly shocked by your threats to ban me.

Sincerely,

Screwed Canadian Millenial

You come here to divide, insult, hector and hate. I’m done with you. Return when you grow up. — Garth

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

Doesn’t the smartest troll in the room know never to use the word “honestly” when pretending to be honest?

Good riddance.

#98 Smoking Man on 10.10.17 at 9:44 pm

Amazing Kid

https://www.youtube.com/watch?v=yUYTxUj4e68

#99 unfulfilled $100K jobs on 10.10.17 at 9:45 pm

TFWs are largely here to do the jobs you won’t. — Garth

Is there a detailed statistics, list of all the jobs that the government approved to bring in temporary foreign workers?

#100 Victor V on 10.10.17 at 9:51 pm

#96 unfulfilled $100K jobs on 10.10.17 at 9:45 pm
TFWs are largely here to do the jobs you won’t. — Garth

Is there a detailed statistics, list of all the jobs that the government approved to bring in temporary foreign workers?

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

Here you go…glamorous stuff, no?

1) farm workers
2) greenhouse workers
3) nannies, babysitters and caregivers
4) harvesting labourers
5) cooks

https://www.canada.ca/en/employment-social-development/services/foreign-workers/reports/2014/lmia-annual-statistics/top-occupation.html#h2.15-h3.4

#101 mortgageman on 10.10.17 at 9:52 pm

screwed millenial, I am not a boomer and I find you offensive as well.

You are not a productive commenter, calling out baby boomers calling them greedy money pigs is terribly offensive.

I think you need to grow up and come back when you are more mature, you just mostly post to get a reaction. I think you should find another hobby in your parents basement. Better yet, start a business and hire some people and give them a good wage. Then maybe you will understand the responsibility of running a business. Your online posting is not productive. But maybe you can make a difference by running a business? Let us know how that works for you.

#102 Sears-aholic on 10.10.17 at 9:58 pm

I have no guilt about NOT supporting Sears! Always first choice for me and my wife to buy appliances, furniture, lawnmowers and clothing. The sales people we had in Coquitlam were great and we took full advantage of their sales days and events. Maybe I am a dinosaur consumer because we don’t do any online shopping! Very sad, thanks for all the good shopping experience from Willem and Helen. Only issue we had was a recent poor warranty follow up on a dishwasher which probably was the canary in the coal mine event/symptom! Good luck to all the honest, hard working employees of Sears!

#103 mark on 10.10.17 at 9:58 pm

DELETED

#104 n1tro on 10.10.17 at 10:00 pm

Up next is the Bay. Let’s hope employees at the Bay are taking notice and preparing accordingly.

#105 Andrew t on 10.10.17 at 10:04 pm

Sears CEO Eddie Lampert has notoriously mismanaged his company. I’m not sure to what extent his fingerprints were over the demise of the Canadian arm, but this seems like it’s been a long time coming. This article is from Salon, but publications like Forbes have also lit into this guy.

https://www.salon.com/2013/12/10/ayn_rand_loving_ceo_destroys_his_empire_partner/

#106 Sydneysiders on 10.10.17 at 10:05 pm

Time for another story about the financial risks that physicians etc. take on in pursuit of their dreams.

Right after the next one on envy, money lust and jealousy. – Garth

#107 meslippery on 10.10.17 at 10:05 pm

For me if I made Jeans in Canada and made a good wage doing it and now the jeans are made over seas.
I am out of a job.
Not happy can’t compete.
If you cannot find people to drive trucks or pick apples in Canada at the rate you want to pay raise your rate till you can. Do not hire TFWs how is that fair labour ?
Supply and demand within a country first.
Hard jobs should pay well.

#108 Thom on 10.10.17 at 10:09 pm

“…establishing a personal line of credit in advance is almost as good. It costs you nothing to set up at the bank, zero to carry and can be tapped only as you require it.”
True, but also be aware that it affects your ability to borrow funds. A $50,000 LOC, even if not used, still counts as $50,000 of debt that you have if you go to borrow money.

#109 unfulfilled $100K jobs on 10.10.17 at 10:13 pm

#93 SoggyShorts on 10.10.17 at 9:35 pm

In my company (where wages are $40/h for skilled labour) and at the Wal-Mart my friend manages(unskilled labour), foreigners are consistently the better employees. Maybe it’s a coincidence, but both of us have had 10x more problems with 3rd generation Canadian employees. Entitlement, tardiness, unexplained absences, and overall work ethic just doesn’t seem to be there.

—-

I can see that as an outsider.

It puzzles me that entrepreneur “old stock” Canadians have outstanding work ethic, drive – yet often even in their kids it’s all gone. Many of them ends up working at the same company in mediocre jobs.

They will most likely inherit more than enough money and social capital from their entrepreneur parent(s) that technically they could have a decent life without ever working… still…

I find it disturbing though that Canada does not want to face this issue and solve it – instead she takes the easy shortcut of importing labor.

It feels like abandoning a big segment of the population, by continuously replacing them, without ever investigating the causes.

The weirdest thing is that the imported labor may be first generation in Canada, but they are certainly several generations in their own country and that didn’t seem to spoil them.

#110 AGuyInVancouver on 10.10.17 at 10:15 pm

#58 the ryguy29
Wipe the flecks of spittle off your monitor and read up on the sham that was Trump “saving” jobs at Carrier’s Indiana plant.

#111 Lee on 10.10.17 at 10:15 pm

In a 60/40 you all shouldn’t be so concerned about it being up each and every year. Your mix of foreign equity might for example be down bc you might have bet too much this year on the wrong region so your overall plan is down as a result. But if you stay 60/40 with a mix of equity etfs from different regions plus some maple reits and you don’t shy away from bond etfs everything should rise 5-7 % a year on average inclusive of dividends. If not, you’re probably 70/30 or 80/20 and don’t realize it. I find a good strategy is to have two etfs for each position. For example, instead of one reit etf making up 5% of your portfolio have two of them at 2.5% of your portfolio each. The extra transaction fees are negligible and you really increase your diversification.

#112 rknusa on 10.10.17 at 10:16 pm

what a moron

https://www.forbes.com/sites/randalllane/2017/10/10/trump-unfiltered/#5115d62c7a58

looks like NAFTA is off

#113 Smoking Man on 10.10.17 at 10:17 pm

The temptation to leap over my sons 8th-floor balcony is strong.

The splat of nonexistence is tempting. I still have a bit of fight in me. My prostate gland in a coma, no reason to live on.

But I got to save the kids. So I’m sticking around for one more thing.

Sid Barret said it best.

https://www.youtube.com/watch?v=yUYTxUj4e68

#114 Capt. Obvious on 10.10.17 at 10:17 pm

I’m surprised they held on as many years as they did. Between Amazon, online retail in general, Walmart and dollar stores, Sears faced a huge challenge. Unfortunate for the employees. I wish them well.

#115 Lost...but not leased on 10.10.17 at 10:17 pm

The $$$sound of more jobs flu$$$hing

Wal Mart (bricks and mortar) mounting a challenge to Wal Mart…channelling more that 1/3 of capital spending into e commerce initiatives….going after Amazon’s share of on-line grocery shopping.

So…..who is gonna win this battle of the giants??? Someone’s gonna lose….

Given Sears collapse…all out wars for survival may be the new norm.

#116 Mark on 10.10.17 at 10:24 pm

“We also have a massive SKILLED labour shortage – speak to anyone in the trades and you will know that.”

How do you figure? Are paper pushing execs earning less than skilled labourers? If not, then how can there be a ‘shortage’? Just because tradespeople are earning good money right now, doesn’t mean there’s a ‘shortage’. With the RE bubble now winding down, what is going to happen of all of the tradespeople who built careers on being in the trades?

I don’t know why anyone would think there’s a ‘shortage’ of tradespeople when the evidence is fairly clear that even tradespeople aren’t that well paid, especially compared to paper pushers.

#117 unfulfilled $100K jobs on 10.10.17 at 10:25 pm

#100 Victor V

Thanks, it’s an interesting list.
I wonder where the TFW IT guys are hiding?

#118 Lost...but not leased on 10.10.17 at 10:28 pm

“pot” or get off the sh*t?

As the market turns….

BC Lower Mainland has seen huge growth in greenhouse production of vegetables over last 20+years…but it appears the vegetable market is saturated..where profit margins used to be 20-25%….now its 6%

Village Farms is converting 1.1 million sq.ft.of greenhouse space to legalized pot production, claiming 10 X’s the profits.

Without the usual jokes..one has to wonder how much competition will ensue…..or be allowed to.

#119 Screwed Canadian Millenial on 10.10.17 at 10:28 pm

BANNED

#120 Damifino on 10.10.17 at 10:34 pm

#44 Pete from St. Cesaire

once they implement their ‘cashless’ society I’ll only buy my groceries from places that let me buy on-line and deliver.
—————————–

That will be a sad thing for me. I much prefer buying groceries with cash. Grab the stuff you want, take it to the checkout and pay for it. Presto! You’re done!

No loyalty programs, coupons, email address, telephone numbers, stupid cards or other wastes of time.

I’m a loyal kind of guy by by nature anyway. Give me reasonable prices, quality product and prompt, friendly service and you can count on my repeat business.

#121 Hotdogs from Heaven on 10.10.17 at 10:37 pm

Many comments here tonight about Sears not keeping up with the times. Maybe, but it was also gutted and drained of all its cash by the New York investment bankers who controlled it.

Here’s a nice write up in today’s Financial Post:
http://business.financialpost.com/news/retail-marketing/brief-sears-canada-to-seek-court-approval-for-liquidation

Many industry analysts say the retailer’s fortunes worsened after billionaire hedge fund investor Eddie Lampert and his ESL Investments Inc. gained control of Kmart in 2003 and merged it with Sears Roebuck in 2005 to create Sears Holdings Ltd.

The following year, Sears Holdings made a bid to buy up the remaining 46 per cent stake of Sears Canada that it did not own to take the company private, but the effort failed after a dispute with minority shareholders.

By 2014, Sears Holdings had a 51 per cent stake that Lampert bought up directly and through ESL after he was unable to find a buyer for the Canadian business. More recently, his combined holdings with ESL stood at about 45.3 per cent.

Analysts were critical of Sears Canada’s failure to significantly reinvest in its business over the last decade even as it raised cash through hundreds of millions of dollars in asset sales by selling off its plum leases to landlords. Observers also questioned Sears Canada’s decision to issue $600 million in special dividends to its shareholders in 2012 and 2013, a move that would significantly benefit Lampert and ESL.

#122 Andrew in Wpg on 10.10.17 at 10:55 pm

https://www.canlii.org/en/on/onsc/doc/2004/2004canlii48711/2004canlii48711.html?searchUrlHash=AAAAAQAhIkRlZmluZWQgY29udHJpYnV0aW9uIiBiYW5rcnVwdGN5AAAAAAE&resultIndex=2

As far as I know, employee and employer contributions to a defined contribution plan are segregated from the company’s assets and managed at a regulated entity. I guess the big question is what happens to the portion of employer contributions that have not yet been paid into the fund? Employees contribute every two weeks, but employer contributions can be every 30 days or so meaning some money could be owing.

Ive found little authority on he subject but am loathe to assume that unremitted employer contributions are safe. The link is to one case that suggests unpaid employer contributions to a DC plan are trust moneys and therefore safe…. but you can see how litigation on this topic could be the result of Sears’.

Very interesting topic – and scary! More reading required!

#123 Calamity Jane on 10.10.17 at 10:57 pm

#94 Stone on 10.10.17 at 9:40 pm

We work in the construction industry and all the builders and contracting companies we work with, as well as our own company, are searching for quality reliable trades. There are pretty decent plumbers & electricians available but there always seems to be a ton of demand for drywallers, painters, flooring guys, stair/railing guys, framers, brick layers, roofers, etc. There’s a pretty serious shortage looming (both here and in the US) in our particular field that is only getting worse as the older generation retires and fewer of the younger generation(s) take up these trades. For our industry there’s no apprentice / training programs to recruit new people to theses trades. Throw in the mandatory WSIB coverage implemented a few years ago for contractors and subcontractors (with a massive loop hole excepting individuals hired directly by the homeowner) and it makes staying “above the table” in those trades less appealing for many…

#124 Feds on 10.10.17 at 11:01 pm

I was under the impression that employee wages and pensions were the most secure creditors under bankruptcy, ahead of everybody else. Isn’t this the case? I have read this numerous times.

#125 Brokenhearted Canadian Millenial on 10.10.17 at 11:03 pm

Garth, https://www.youtube.com/watch?v=AXA21RL9-IY&feature=youtu.be&t=3

I seriously thought we were getting along.

I’m sorry we got to this point, you and I.

#126 unfulfilled $100K jobs on 10.10.17 at 11:04 pm

“Racists”, “misogynist” Ontario lawyers “purged” by Law Society

Quite unbelievable…

https://www.youtube.com/watch?v=YGC3y1BPzwA

Summary: Recently, the Law Society of Upper Canada (Ontario) has made major revisions to their requirements for the annual submission for legal practitioners in that province. As part of a five-part strategic program known as “Accelerating Culture Shift,” all lawyers are now required to write, submit and abide by a “Statement of Principles.” The details can be viewed here https://www.lsuc.on.ca/EDI/ — a site which indicates what lawyers now need to “KNOW AND DO” (caps in the original) for 2017.

In this video, I discuss this new demand (enforced by the power of government and law) with practicing lawyer Jared Brown and Professor Bruce Pardy of Queen’s University, both of whom testified, along with me, last year at the Canadian Senate on the compelled speech required by federal Bill C-16.

The content of the now-mandatory “Statement of Principles” has been dictated and will be reviewed for compliance by the Law Society itself: Acknowledgement of the “obligation to promote equality, diversity and inclusion generally, and in… behavior towards colleagues, employees, clients and the public.” This is part of a broader claim by the same society of systemic racism endemic in the legal profession in Ontario – a claim for which very little credible evidence has been collected and distributed. Furthermore, the Society now requires every legal workplace of 10 or more licensees to “develop, implement and maintain a human rights/diversity policy” and to undergo an “equality, diversity and inclusion self-assessment for their legal workplace, to be provided to the Law Society” (which will also “encourage legal workplaces to conduct inclusion surveys by providing them with sample templates.”) Failure to do comply brings with it the threat of serious penalties, including reputational damage and, more seriously, loss of the right to practice.

#127 Ian on 10.10.17 at 11:11 pm

US retail is completely hitting the fan as well. The photos of the abandoned malls are just eerie!

I wonder if it will contribute to society’s loneliness, much like social media would like you to believe they are connecting the world when really they are only driving isolation.

If friends do not meet at malls anymore, and everyone just orders things online at home it’s kind of a sad picture.

I agree with the comments about the Sears catalog being an opportunity to lead in ecommerce. They really missed out there. I remember the catalog well as a child in the 70s.

Thank heaven SCM is gone. What a blithering tosspot! At least he will have the universal basic income to support him soon.

#128 conan on 10.10.17 at 11:11 pm

Lots of drama here tonight at the Greater Fool.
Millennial gets the shoe, and SM is going country.

Wow….

http://gifimage.net/wp-content/uploads/2017/01/Eating-Popcorn-GIF-Image-for-Whatsapp-and-Facebook-10.gif

#129 Scoops on 10.10.17 at 11:13 pm

THANK YOU Garth for banning the Millenial! I think most of us on here were quite tired of his hate, jealousy, and downright racism. Good riddance!!

#130 Spock on 10.10.17 at 11:14 pm

I thought I was sarcastic. What a reply to put this clown in place (maybe I should not insult clowns).

Well done GT.

———————————————–

#106 Sydneysiders on 10.10.17 at 10:05 pm
Time for another story about the financial risks that physicians etc. take on in pursuit of their dreams.

Right after the next one on envy, money lust and jealousy. – Garth

#131 Spock on 10.10.17 at 11:19 pm

I guess I will never get the data from Banned SCM backing up the claim that boomers do not give back.

There will be a lot of folks sad about the layoff of 12,000 Sears employees but there will be only one person (SCM) crying about the firing tonight. ;-)

Maybe a farewell party at Belfountain if it is still open on the weekend in honour of getting rid of a cry baby who could not back up the claims.

If only it was so simple to ban T2 and His sidekick Bill.

#132 Keith in Rio on 10.10.17 at 11:21 pm

The Chili’s restaurant chain in Alberta announced it’s closure of all its locations today, except for the ones in YYC and YEG.

There goes another couple of hundred jobs.

#133 Ian on 10.10.17 at 11:23 pm

It’s funny with retail, I used to wonder with it gone how would people try on clothes to see if they fit?

Then I hear about this app M Tailor where they do custom shirts where you photograph yourself with your phone and they claim a 20% better fit than a tailor.

Wowza technology! Problem solved I guess.

#134 meslippery on 10.10.17 at 11:27 pm

crewed Canadian Millenial on 10.10.17 at 10:28 pm

BANNED
—————-
I have not read everthing she has said.
To me might be older than she appears.
However think back Garth to when you had a page in the Toronto Sun and if you had a inkling of wages of workers at the Sun at that time.
Adjusted for inflation how happy are those folk?
You know the cleaners, truck drivers, labourers.
Most likely making less but unless you did it for years
you dont know what it once paid.

#135 calguy on 10.10.17 at 11:27 pm

For once I agree with Screwed Canadian Millenial #11 – universities taking more and more students with less professional jobs. Found out on Global National that T2 wants to tax employee discounts – what next?! This has gone too far. Who ever said Life is fair? What ever happened to life is not fair. Tax people in all classes and for petty things. Can’t wait for next election – “Drain the swamp!”

#136 cynical millenial on 10.10.17 at 11:29 pm

No mention of the Sears CEO’s ultra-conservative, Ayn Rand inspired company policies?

http://www.pbs.org/newshour/making-sense/column-this-is-what-happens-when-you-take-ayn-rand-seriously/

Maybe he ought to have tried more socialist approaches. Like treating their employees properly a la Costco. Or not believing the myth that competition always beats collaboration. They might all still have pensions.

The company was perfectly positioned to kill it at online retailing, something it had more or less done since it issued its catalogue. Instead, a deluded doofus destroyed a Canadian icon. Sad.

The story linked is about the American CEO of the American company, not Sears Canada. Speaking of ideologically-driven deluded doofuses… Garth

#137 MSM-Free Zone on 10.10.17 at 11:32 pm

“…TFWs are largely here to do the jobs you won’t. — Garth…”
___________________________________

If you mean “..do the jobs you won’t do for nothing”, then you are correct.

http://nationalpost.com/news/canada/canadian-helicopter-pilots-say-cheap-temporary-foreign-workers-slowly-killing-the-industry

#138 Karma on 10.10.17 at 11:32 pm

#26 Keith on 10.10.17 at 7:25 pm
“Retail as a working career died a long time ago. I remember people working in B.C. as grocery clerks in the early 80’s pulling down $17 per hour and living a proper middle class lifestyle. Those days are long gone. Imagine that wage in today’s dollars.”

Highly doubtful a cashier made that much money in the 80s. My dad has had a pharmacy since the 80s. At the peak, he had 40 employees, most part-time and students. The best paid non-pharmacists were the ladies who worked in the perfume/make-up departments. Cashiers didn’t get much more than minimum wage. You are wearing rose-tinted glasses.
————————–
“Today even the large retailers are rife with minimum or low wage positions, often part time with no guarantee of hours in a week, and little in the way of benefits. A sad commentary on the largest category of employees in Canada.”

Like SCM said, too many low skilled people in Canada competing for non-value-add jobs. This is no one’s fault, except for perhaps the gov’t for having high immigration levels relative to the total population (one of the highest in the world).
———————————
“There are many who read this blog (not our host) who will say that retail workers are unskilled, and do not deserve to earn a living wage. Well, if it was ok for unskilled mill workers and factory workers to earn a decent living, why not retail clerks? Oh yeah, retail employees are mostly female. That makes it right.”

Wrong, it’s got nothing to do with gender. It’s got to do with a) working in a remote place, b) working in a relatively dangerous occupation, c) working in an industry that creates value (i.e. turning timber into lumber that can be shipped all over the world). As automation takes over mills, there are less employees who are incrementally more productive, therefore they get raises. And being in a union helps. Retail generally doesn’t have unions.
———————————

“Garth’s conclusion is probably the harsh reality of our time. As a computer programmer, you can be outsourced to India for less than a living wage in Canada. I asked an engineer why we had to pay him so much money when there were better ones in India we could email the projects to. He replied that they weren’t members of the Professional Engineers society of B.C., so they weren’t permitted to work here.”

Anyone can outsource work to India, but there is an old adage: You Get What You Pay For. So those Indians who are good may be able to do the work over there, but they can’t come to Canada and work just like that, as your engineering friend probably implied.
—————————-
“In an online global society, an old school job with a large employer no longer has the “security” it used to. Today the bell tolls for the workers for Sears, but in reality it tolls for everyone. Lower paid, lower skilled workers are the first to go. They will not be the last.”

Yes, that’s called progress. Keeping unproductive jobs around serves no great purpose. Sears’ demise has been in the works for well over a decade. Humans need to be productive to maintain a good standard of living, and those employees are no different. Good luck to those employees of Sears, and more importantly the retirees, but this event isn’t a good or bad thing, it just “is”. For society, those resources unprofitably utilized by Sears’ management can now be put to greater economic purpose by other entities.

#139 Ian on 10.10.17 at 11:32 pm

Maybe with 12k new people going on UI, The Snowboarder and Tax Fairness can get their $30bln deficit target back on track. They were slipping a little bit there, at a piddly $17bln.

#140 Oft deleted much maligned stock.picker on 10.10.17 at 11:35 pm

I just had a sandwich and a beer after work paid for by the boss….and I’m not telling Justin. The boss tells me that employee perks are cancelled….too expensive to build an administration around tax collection. The Subway guy wanted to know which condiments are taxable, which not? Looks like the Libtards just started another underground revolution.

#141 Oft deleted much maligned stock.picker on 10.10.17 at 11:39 pm

Oh…and btw…why aren’t the civil service free health and dental…life insurance…paid sick day…compassionate leave….subsidized pension contributions etc not taxed? Is it because unions spend millions getting liberals elected?

#142 Long-Time Lurker on 10.10.17 at 11:40 pm

Thoughts.

First the blog photo and the thousands of unemployed former Sears employees. It reminds me of an incident that happened to me in my twenties:

I went into a print shop to get something done and the owner there tried to get me to go to his church. I wasn’t buying it because I didn’t like the church I went to when I was a kid and I didn’t want someone telling me I’m going to hell on a weekly basis.

During the conversation he said, “When I came here from Korea I didn’t know how I was going to survive; but this business came to me.” (The benefits of going to church)

Now twenty years later with my own business I better appreciate what he said to me because there’s no safety net in owning a business. Just look at Sears. I guess a little faith goes a long way. (I’m still not into the hellfire.)

Another thing is that if you think things are bad now just wait until later.

When the housing bubbles pop and asset prices return to the mean, the economy as a consequence is going to slow down. (Housing-based industries decline) So there’ll probably be a recession.

The problem is that J Trudeau’s spending is out of control and he’s hobbling small business at the same time. That means big debt levels and a weak economy to service them. So there’ll be higher taxes and fewer employed people at the same time. Canadians could be going from luxury houses and luxury cars to austerity in under ten years.

The sad thing is that J Trudeau has no inkling of the consequences of his actions and none of his caucus save Wayne Long understands this.

Canada got through the global financial crisis of 2008-2010 without a scratch because of good leadership: Liberal (Chretien) and Conservative (Harper). Now I’m seeing a sorry state of affairs because of Trudeau.

I gave Trudeau the benefit of the doubt when he first started but now I’m sure he’s just plain clueless. Morneau should know better than to stay with a sinking ship. No clue times two?

I respect Poloz because he’s warned Canadians about the housing markets repeatedly over a long period of time. Don’t say that he didn’t warn you.

#143 Notagreaterfool on 10.10.17 at 11:40 pm

The weather here in Toronto has been so mild. I guess the real estate market is on fire!

Sarcasm people.

Anyone have early Oct sales/price figures?

#144 banned on 10.10.17 at 11:51 pm

Garth please get rid of bad guys sooner so that you don’t get pixxed ….. and quit .. we need you mate

ban more please

#145 meslippery on 10.10.17 at 11:51 pm

#135 Oft deleted much maligned stock.picker on 10.10.17 at 11:35 pm

I just had a sandwich and a beer after work paid for by the boss….and I’m not telling Justin. The boss tells me that employee perks are cancelled….too expensive to build an administration around tax collection. The Subway guy wanted to know which condiments are taxable, which not? Looks like the Libtards just started another underground revolution.
—————
Well if people still have cash $$ the boss can give you perks and tell no one.

#146 SJF in 312 on 10.10.17 at 11:54 pm

RRSPs are fine for certain uses, but they make after-tax money taxable again. — Garth

True, but ideally, with proper planning, you may and could have the opportunity to make RRSP allocations pre tax. RRSPs are a deferral of earned income and the corresponding income tax. Using after-tax money and explaining the mechanics of “reversing” income earned and taxes paid, confuses people. Too bad.

#147 Karma on 10.10.17 at 11:57 pm

#51 FOUR FINGERS WATSON on 10.10.17 at 8:10 pm
“Sad to see all those people losing their pensions and their jobs. Sad to see Sears bite the dust too, but their business model didn’t work in this brave new world. You either adapt or die.”

Yes. It’s been adapt or die since the dawn of humanity. And it always will be.

#148 Ponzius Pilatus on 10.11.17 at 12:03 am

#17 Lost…but not leased on 10.10.17 at 7:06 pm
Come to Richmond, BC. population 220,000

ZERO dept. stores
Woodwards went bankrupt in 1992
Eatons went bankrupt in 1999

Sears left in 2015
Bay is simply a glorified fashion store
Zellers is gone
Target didn’t last a year
ZER0 movie theatres in City Center
ONE Dairy Queen….
City Center is effectively gutted of major chains and businesses
—————
You are naive. Boy.
T&T will open a massive store at the old Zellers, Target location.
500 plus Chinese restaurants, mostly family run.
No one works harder and smarter than the Chinese.

#149 Lost.....but not leased on 10.11.17 at 12:05 am

For those of us old enough to remember…many large families were raised on single incomes…union and non union jobs…whether it be a Sears job…Baker..Cashier..plumber…etc etc.

The policies, many of them from T1, set in motion the mess we have today whereby inflation has effectively run rampant, moreso in RE…and deceives people that there is actual asset growth.

There really hasn’t been any real growth in many sectors, mainly predatory pillaging of competition, often leverage by Hedge Fund @ssholes.

#150 SWL1976 on 10.11.17 at 12:08 am

We started a pizza shop here in a small town on Vancouver Island and have been having a fantastic first year all things considering. As if starting a small business isn’t hard enough, as luck would have it for me I was forced to manage all of the moving of equipment and setting up shop with a broken leg.

During the past 9 months I have had the pleasure as well as frustration of employing mostly young millennial’s. Most I would say are quite responsible and hard working individuals, while the others seem reminiscent of our local here, SCM. Screwed yes, but what they fail to see is that they are mostly being screwed by themselves. They have some tough lessons yet to be learned.

Starting a business is not for everyone, but to provide a service people enjoy and help build a community is a wonderful thing. I have not yet taken a single paycheck and have just been happy the pizza shop has been cash flow positive since day one.

Oddly enough I was just getting caught up on mail tonight and was reminded of a pension that I have out there that as March 2018 I will be transferring into my own account.

in-spite all the bad news we receive daily, this blog is a beautiful place

#151 Charles Ponzi on 10.11.17 at 12:14 am

Great picture. I’ll skip the wig, but those glasses will be great for making careful observations.

Are We Cross? Is God Panicking Under Observation? https://www.youtube.com/watch?v=sFgJxazHZao

#152 n1tro on 10.11.17 at 12:15 am

#119 Screwed Canadian Millenial on 10.10.17 at 10:28 pm
BANNED
———————
Christmas come early this year?

#153 cd on 10.11.17 at 12:16 am

I’m in the minority, but the reason I don’t shop at Sears (and many other stores) is that I slowly got out of the consumer culture. On a weekly basis I usually only buy food and drinks. I try to take care of stuff I own, and quite often I am clever enough to fix whatever needs fixing. Would rather spend my time drinking cheap wine, laughing at dogs, and listening to funk records than going shopping at store like Sears.

not too sure if this song is a bit of an obscure reference to this audience but I prefer it over to what SM is prescribing…
https://youtu.be/Ku2yGHzcCQQ

#154 Graeme on 10.11.17 at 12:18 am

I’m hording cash n’ gold and waiting until after GFC 2.0

Then I’ll buy something really nice. Like cheap stocks.

Santa’s coming soon I think!

#155 Midnights on 10.11.17 at 12:24 am

That’s very sad…
Very sorry to hear/read.

#156 Ponzius Pilatus on 10.11.17 at 12:29 am

Not sure why banning the millennial kid.
I never read his/comments.
Smokie is getting tiresome, too.
Why not sent him into purgatory for a while, too.

#157 Keith on 10.11.17 at 12:32 am

@#138 Karma

“Highly doubtful that cashiers made that much.” Cashiers were paid more than the clerks. Meatcutters even more. It’s a fact. Ask your relatives who were around. I had several Safeway clerks as friends. Good union gig for many years, double time on Sundays, high wages – in B.C.

“The Indians can’t come over here just like that.” Disagree. See the tech industry in Silicon Valley, and how many South Asians work there. The top schools in India are visited by tech recruiters from top companies in the industry.

You’re pretty young, aren’t you. Plenty of lumber mills were located in the lower mainland, in New Westminster, in Victoria, Nanaimo, the south island. Jobs have been off shored, so they’re in remote areas now. Not back in the day. Retail clerks making $17 per hour created value for their employer at that time. Plenty of well paid workers could afford to pay each other’s wages. It’s how you build a strong and inclusive economy, having well paid jobs. See Scandinavia, which is like Canada in the sixties and seventies for employees.

“It just is.” And when the computerization and robots take over employment in vast numbers, there will be a lot of people who don’t have a job, don’t have money and don’t have anything to do. How is society dealing with people in jobs that don’t create a lot of value for their employers? Well, we have a lot of people working for less than a living wage, with minimal or no benefits.

It will shock you to learn that this is a relatively recent trend in Canada, and so far society is coping with it … not very well. Self employment, freelancing and a gig economy may be the future, I hope people can make enough to pay for their own pension, benefits, insurance and all the real compensation that large employers have traditionally offered.

Talk to people who are old enough to remember higher union density, getting pay raises above the rate of inflation, higher real minimum wages, 4% real unemployment, one income families, and employment security. We are moving away from all of those realities, and it is not for the better. There are a few socialists on this blog with an “eat the rich” mentality, one born of envy and jealousy. There are many with an “eat the workers mentality,” who seem to delight in a day when the people who are the market for their goods and services will no longer be able to afford them. We are all connected, what we do to one, affects us all.

#158 yorkville renter on 10.11.17 at 12:36 am

12,000 jobs is a LOT of jobs… not just store level, but corporate jobs too.

While Target failed the employees were all new. Many (most?) Sears people are lifers, and finding a new job will be very difficult for them. I wish them the best if luck.

#159 Entrepreneur on 10.11.17 at 1:08 am

I think our youth have given up #93 SoggyShorts, too much and too hard on them, the drive to go to the next level in life, the dreams. The climb/dreams have disappeared at least 30 years ago.

I would like to see the youth buy a home, have children, support our communities. We need our youth to grow and prosper. And maybe start a small business.

Have out leaders forgotten our vulnerable youth. They speak with anger without knowing why or what but are angry that should be acknowledged and addressed to improve our communities and our country.

#160 WestCoastRobot on 10.11.17 at 1:14 am

I wonder if 65 years ago people complained about the Sears catalog business hurting local jobs in the same way people are complaining about Amazon now.

#161 Ryan on 10.11.17 at 1:24 am

Online didn’t kill Sears. Online will start disrupting brick and mortar stores big time in about 20 years. But right now it is still a small percentage. Sears killed itself by not adapting to the times, stores being too big (ie. High rents), and the competition like Costco, Dollarama and everything else under the sun.

#162 Kanaduh on 10.11.17 at 1:39 am

Sorry, I don’t see that the concern or problem is here – they can all become real estate agents right?!

#163 Kanaduh on 10.11.17 at 1:45 am

How does Marshalls stay in business, it’s total crap they sell. So we really need all these bs retail stores. I guess people love to waste their money on crap.

Ontario is literally the same stores repeated every few blocks. Marshalls, Bouclair, Shoppers, Walmart, all selling crap.

#164 Pete from St. Cesaire on 10.11.17 at 1:45 am

Acknowledgement of the “obligation to promote equality, diversity and inclusion generally, and in… behavior towards colleagues, employees, clients and the public.” This is part of a broader claim by the same society of systemic racism endemic in the legal profession in Ontario – a claim for which very little credible evidence has been collected and distributed. Furthermore, the Society now requires every legal workplace of 10 or more licensees to “develop, implement and maintain a human rights/diversity policy” and to undergo an “equality, diversity and inclusion self-assessment for their legal workplace, to be provided to the Law Society”
———————————————————–
Want to talk racism: Let’s look at Alberta. The Native population only makes up a small percentage of the overall population but constitutes the vast majority of the prison population. How could this be? There are only 2 possible reasons and neither can be adressed legally. Time to scrap the whole system and send many of it’s operatives off to face human rights charges at the Hague.

#165 Reality 1 on 10.11.17 at 3:05 am

to # 36 Nonplused and other ill informed and anti- Canadians

The C series Bombardier planes are the BEST planes in their class BY FAR.

The new 7000 biz jet is the best all round biz jet.

On the fuel efficiency / noise / pilot satisfaction metrics these two airframes are currently untouchable.

They are all new and address a growing niche for longer regional flights.

With the ability to reach further destinations and use shorter airfields, they are far more flexible in their application and quieter and less polluting which works well with airports in close proximity to cities. Like in Europe.

And they intelligently fill a seat count niche that the Neo (Airbus) and 737 Max (Boeing) don’t address, both of which are merely improvements to existing airframe architecture.

This is why SWISS (which I fly most regularly), Baltic Air and other European airlines are eschewing the Embraer and Airbus offerings for the C series – and they are European airlines !

I’ve talked to several SWISS pilots and they say that it is the best small airliner that they have ever flown, bar none ! A test pilot thought the 7000 was awesome.

What the hell is wrong with Canadians ? No sense of success in their own lives means denying recognition of others’ success ?

EVERY major airframe maker is subsidized in one manner or another in the country of origin – if it ain’t tax breaks, then it is plum, high margin military government procurement.

What Bombardier doesn’t do well is concealing this fact and hence the “optics” are very sub optimal.

Building competent commercial aircraft is the HALLMARK of advanced manufacturing and engineering capabilities of a country. And an affirmation of real competence in the supply chain in that country.

That is why even China struggles to build a relevant airframe and only a handful of countries can: Brazil (Embraer), USA (Boeing, EU (Airbus) and CANADA (Bombardier) .

If we don’t champion our own, then who will ?

#166 Where's The Money Guido? on 10.11.17 at 3:19 am

I was silly to think that Sears still had good customer service back in 2008 when I bought a heat pump and high efficiency furnace after getting sucked in by the BC gov’t with their “incentives”.
Had a few little problems with warranty service in the first 6 months after install and I swear it the worst retail experience in my life. One time I waited for 1 1/2 hours before anyone answered the phone at their end. Lucky I had a land line as the cell would have kicked me off. They had absolutely horrid customer service, but they must have sold lots of them at that time, since they weren’t answering my call for that long, lol.
I still have all the paperwork and times I called. The list is endless.
Never set foot in that place again and I could have spent thousands more with upgrades to all my other appliances.

#167 Reality 1 on 10.11.17 at 4:06 am

DELETED

#168 Reality 1 on 10.11.17 at 4:17 am

to # 125 Brokenhearted Canadian Millennial

In true form for a Millennial – it’s always about YOU !

And here I thought after your comment # 11 today that you had ‘turned the page’ and joined the ranks of the rational.

Ah well, I guess I’ve always been something of an optimist.

Thanks for “taking out the trash” Mr. Turner.

#169 Jay (not that one) on 10.11.17 at 4:22 am

Talking out of both sides of your mouth.

Is being in business for yourself riskier or less risky?

In justifying preferential tax treatment, you painted it as being much riskier. Now you’re trying to paint it as the opposite, a hedge against unemployment.

It’s tough lobbying for a special interest group.

#170 Reality 1 on 10.11.17 at 4:37 am

to # 127 Ian

Sam Zell (possibly the best American commercial RE investor of his time and a multibillionaire) was recently on MSNBC and opined on this phenomenon. He is known as a very astute purchaser of distressed assets as well.

To paraphrase his take on current retail space dynamics :
– ‘the sector is in freefall, outlook very unclear and the prospects of “catching falling knives” very much in evidence – I would not be a buyer of any real property in this space and it is unlikely to bottom anytime soon due to this transition being of a structural nature due to overcapacity’

I would go with Mr. Zell on this one.

#171 Dolce Vita on 10.11.17 at 4:45 am

Death administered by better competitors (e.g., Amazon, Walmart, Costco).

The demise of Sears Canada caught everyone’s attention only because of familiarity. Nothing new.

Their Workers would have known Sears Canada demise was eventual, witnessed its daily mismanagement for themselves and for years – basically, the end game right under their noses.

They thought they could ride out the storm before retiring and thinking a grossly failing enterprise would miraculously have set money aside for them.

Like everyone else, I feel bad for Sears Canada and its Workers.

Time ran out. Old habits die hard.

#172 Bat Guano on 10.11.17 at 4:47 am

DELETED

#173 Howard on 10.11.17 at 5:05 am

#136 cynical millenial on 10.10.17 at 11:29 pm
No mention of the Sears CEO’s ultra-conservative, Ayn Rand inspired company policies?

http://www.pbs.org/newshour/making-sense/column-this-is-what-happens-when-you-take-ayn-rand-seriously/

Maybe he ought to have tried more socialist approaches. Like treating their employees properly a la Costco. Or not believing the myth that competition always beats collaboration. They might all still have pensions.

The company was perfectly positioned to kill it at online retailing, something it had more or less done since it issued its catalogue. Instead, a deluded doofus destroyed a Canadian icon. Sad.

———————–

Sears is a Canadian icon?

Sears? An icon?? A Canadian icon???

Is Canada so devoid of inspiration that it needs to appropriate crappy foreign companies to be its icons?

#174 Dolce Vita on 10.11.17 at 5:05 am

Looks like CRA will be successful in tracking down YVR RE Assignment, Flippers circumventing the foreign buyers tax, not paying taxes on these deals AND winning against Developers that benefit from this practice financially, yet try to hide behind the “privacy of information” law to perpetuate the windfall:

https://beta.theglobeandmail.com/news/british-columbia/court-orders-developer-to-reveal-condo-flipper-info/article36528239/?ref=http://www.theglobeandmail.com&

Good. I despise tax cheats.

Say what you will about the Libs and their tax hungry ways, the above taxation hunger games will be a good outcome for Canadians – property values not inflated by a select few playing FOREX with that “commodity”.

If only CRA could do something about Developers selling Condos in foreign countries for less than what Canadians have to pay, and proudly advertising the fact:

https://globalnews.ca/news/3768735/onni-ad-discount-overseas-buyers/

Sad day for Canada when a foreigner, on offshore territory, gets first dibs on Cdn. RE and pays less for it, sad day indeed.

#175 Balmuto on 10.11.17 at 5:13 am

“Even money placed into the company’s defined-contribution plan is in jeopardy, with some pensioners being told they can expect only a fraction of what they’d counted on. The plan is apparently under-funded, and now its corporate sponsor is kaput. Ugh.”

Do you mean defined benefit plan? How can a defined contribution plan be under-funded? Employee and employer contributions should all be held and invested in various segregated funds in a DC plan.

#176 Under the radar on 10.11.17 at 6:08 am

Sears was poorly managed. Their merchandise became largely irrelevant for most people because of Walmart etc. High operating costs because of their enormous real estate and staffing requirements bled the company for years. The writing was on the wall for a long time . Rio Cans decision to shed non core locations is no coincidence. Traditional big box retailer in is moribund

#177 NEVER GIVE UP on 10.11.17 at 6:31 am

#17 Lost…but not leased on 10.10.17 at 7:06 pm
Come to Richmond, BC. population 220,000

ZERO dept. stores
Woodwards went bankrupt in 1992
Eatons went bankrupt in 1999
City Center is effectively gutted of major chains and businesses
===================================
There is one thing Richmond has going for it and that is the universal support for small and micro businesses. This is a cultural lean from Chinese and Asian immigration.
I highly respect the strength and vibrancy of the local small entrepreneur who are easily stepping in to fill the shoes of the large Chains.

Canadian government culture is really hostile to Small business and they thrive only through their own resources with no help and plenty of hindrance from all levels of Government.

The Chinese attitude to this is to go ahead anyway and ignore petty laws and roadblocks.

Note most cities hate and deny licences to Flea markets. Only grandfathered Flea Markets are allowed to operate.
Every city is a NIMBY because they can’t regulate a spic and span look and impose their sterilized planning on them.

But look at Richmond with 2 major vibrant night markets where young people go to learn entrepreneurial skills!
Good for them.!

Did you know if you were to stand at a subway platform and try to sell umbrellas in Vancouver when it is raining. A very useful service indeed! You would have your products quickly confiscated by police and you would be photographed by Bylaw enforcement.
Hostile!

#178 Another Deckchair on 10.11.17 at 6:56 am

@Garth re SCM:

“You come here to divide, insult, hector and hate. I’m done with you. Return when you grow up. — Garth”

Thank you.

It’s an ill wind that blows no good; I come here to learn from you and the bloggers of all ages and means. Seems that SCM obviously did *NOT* come here to learn and understand, but solely to annoy and antagonize, and take over your blog with negative diatribe.

You gave her/him lots of chances, but “all mouth, no ears” seemed to be the person, unfortunately.

SCM – good luck, hope you do learn to listen; life can be a lot of fun if you take a positive attitude and listen to your fellow humans.

#179 MF on 10.11.17 at 6:57 am

#150 SWL1976 on 10.11.17 at 12:08 am

Excellent post.

It’s awesome the pizza shop is doing well!

MF

#180 rainclouds on 10.11.17 at 7:10 am

Sigh, another day and more work cleaning up the detritus left behind by the former Provincial Govt.

Hopefully the BC CRA regional office doesn’t get burnout digging into: Developers/Gamblers/spekkers and of course most important, undeclared free pizza given to employees!

http://vancouversun.com/news/national/highest-proportion-of-high-rollers-at-river-rock-casino-are-real-estate-professionals-internal-audit

#181 Dharma Bum on 10.11.17 at 7:13 am

Sears ultimately had a great run, in comparison to a lot of companies.

Like a lot of humans, however, they were dead meat long before they stopped breathing.

As a species, we have a penchant for hanging on, when the smart thing to do would be to just let go.

Sears should have been mourned when they were put on forced life support 35 years ago. It was over then.

A respirator forcing air into a person’s lungs when the body and brain cannot otherwise function does not render that individual a living soul.

The tears for Sears should have been shed long ago, way before the plug was actually pulled.

Clinging to the past is a mug’s game.

All of existence is based in impermanence. As much as humans wish to deny that change is the only constant, it is the ultimate truth. We are eternally in motion. The good things we enjoy today will surely fade, just as the setbacks we experience will diminish as well.

Impermanence should be at the forefront of our minds. We must always be ready to accept the twists and turns in the path of life and develop the ability to move with them.

#182 Victor V on 10.11.17 at 7:13 am

Stricter OSFI rules on mortgage lending ‘will do more harm than good’: Fraser Institute

http://business.financialpost.com/personal-finance/stricter-osfi-rules-on-mortgage-lending-will-do-more-harm-than-good-fraser-institute

The Fraser Institute said Wednesday the changes to consumers with 20 per cent down could make it harder for them to access mortgages, especially in higher-priced markets. Those buyers could turn to less regulated finance companies or perhaps turn to shorter, more volatile variable loans to meet qualification criteria.

“The proposed stress test for financially sound homebuyers is unnecessary and will do more harm than good,” said Neil Mohindra, a public policy consultant and author of the Fraser report, Uninsured Mortgage Regulation: From Corporate Governance to Prescription.

#183 maxx on 10.11.17 at 7:28 am

This post is a true gem, Garth. One of your very best and those who don’t heed its wisdom are almost guaranteed a precarious, if not perilous future.

As it happens, we’ve done precisely what you recommend. We went through a Sears-like experience in 1995. It seemed like decent employment was a distant memory and the future very bleak. I swore that if a good job came our way again, I’d shovel money into savings like there was no tomorrow. With fury. Even more than I’d already been doing since the age of 15, when I worked at McDonalds on a split shift.

A dream job eventually did arrive and the savings rocketed. Standard operating procedure was RSP, max out savings, rinse and repeat. Unwaveringly. Then along came the TFSA and the SOP became RSP, TFSA, savings.
We then started our business on a shoestring, with close to zero overhead. It’s a mobile, knowledge-based business that we can practice from anywhere and as long as we like/can.

Corporations do such a great job selling us stuff that we end up believing that they are more substantial than they really are. They aren’t.

How in Hades can government allow large corporations to under-fund people’s pensions, designed and intended to support them in their frailest years?! Doesn’t it realize that secure, funded citizens spend and do great good to the nation’s economy and that snuffing out futures, well-being and wallets weakens it? How can decades of loyalty be tossed into the garbage bin without decent recognition/compensation whilst execs (yet again) get to saunter off with a vat of security?

Never in my life have I seen so many souls on their back foot, whether they realize it or not. Many don’t – yet. Rolling debt and financial insecurity now seem to be the norm.

Not good for a country’s future: Debt, deficit and stagnation, with seemingly no exit in sight.

You know what to do dawgs.

#184 Another Deckchair on 10.11.17 at 7:43 am

@157 Keith

“Well, we have a lot of people working for less than a living wage, with minimal or no benefits. ”

(background: Obviously, the living wage comes from business extracting the last penny from the people supporting that business (i.e. the business is actually doing what it should do – maximize income). I expect that the new minimum wage will not give minimum wage workers ANY long term benefit; expenses will simply rise to match their new purchasing power)

The question I have is, “how do we lower the living costs to match the new normal salary?”

#185 Wrk.dover on 10.11.17 at 7:45 am

#173 Howard on 10.11.17 at 5:05 am

Sears is a Canadian icon?

Sears? An icon?? A Canadian icon???

Is Canada so devoid of inspiration that it needs to appropriate crappy foreign companies to be its icons?

????????????????????????????

Where were you?

In the sixties on Chum 1050 AM before there was FM the jingle went:

You’ll enjoy shopping at Simpson’s
With their money back guarantee
Service, selection, complete satisfaction
And free delivery too
You’ll enjoy shopping at Simpson’s!

They were south of Queen, west of Yonge, while Eaton’s was north of Queen. I still remember the not much more than a foot wide rickety wooden escalators in the old part of Eaton’s with treads made of pieces similar to hockey stick handles, awaiting to grab your shoe lace. Remember Simpson’s fleet of step vans plying the suburbs daily?

Then a raider named Sears merged up Simpson’s…..and the inevitable thing happened after the merge, as always happens. Change the business model, and wonder why it failed. ( hand delivered catalogue any small purchase gets free delivery too, really? )

M64NS

#186 maxx on 10.11.17 at 8:05 am

#7 TnT on 10.10.17 at 6:50 pm

“I knew Sears was doomed when in March of 1995 I bought replacement wheels for a Sears lawn mower via phone / catalog and they showed up in October, well after grass cutting season.”

Plus, the cold, cavernous, next-to-zero visible employees put me off. Even the multi-layered, double-digit percent discounts weren’t enough to get me through the door.

People are merciless when it comes to slow, second-rate commerce, often accompanied by attitude. Corporation’s treatment of people, especially their employees has taught us all very well how to deal with them.

I love voting with my wallet and creating a $hitstorm when attitude falls far short of civilized. Maybe it helps the next guy a bit.

#187 crowdedelevatorfartz on 10.11.17 at 8:19 am

@#79 Pam
“Who is John Galt?”
+++++

You Ayn Rand fans always say that.
Google it.
After you reread “1984”

#188 arfmoocat on 10.11.17 at 8:20 am

Wally ate another retailer

#189 crowdedelevatorfartz on 10.11.17 at 8:21 am

@#73 Screwed Canadian Millenial.
“What did I do wrong Garth? I’m honestly asking. I would like to know. Please tell me. I’m honestly shocked by your threats to ban me. ”
++++++

and the Millenial whining continues unabated…….

#190 Julia on 10.11.17 at 8:27 am

Employees are screwed on anything that isn’t legally owed to them. The money they and Sears already put into their pension is safe. The pension deficit will never be filled – those should not be allowed. Currently deficits have to be funded within 5 years, exceptions can be made for 10. Should not be allowed at all.

Severance? Well, if they weren’t given one they won’t get it.
Salaries and vacation? Ranks ahead of creditors and in the event there is no money available, employees can make a claim to the Federal Government under the Wage Earner Protection Program (WEPP) once the company becomes bankrupt. They have not been able to as of yet as the company is not bankrupt. With the latest news of permanent closure they will be at some point.

#191 Garth on 10.11.17 at 8:29 am

Kudos to you in constantly reminding readers to save . To live below there means . Tomorrow is promised to no one, but having a few dollars set aside provides peace of mind and decreases potential significant hardship .

That said , I do own a few selective etfs but have more quality mutual funds . Etfs are terribly exposed during the downside – like deer in the headlights with no one at the wheel .

Amazing to watch the etf explosion in Canada . More ‘active’ etfs just keep popping up. Amazing . I think Canada is the etf capital of the world

#192 crowdedelevatorfartz on 10.11.17 at 8:37 am

@#126 Unfullfilled 100k jobs
“the Society now requires every legal workplace of 10 or more licensees to “develop, implement and maintain a human rights/diversity policy” and to undergo an “equality, diversity and inclusion self-assessment for their legal workplace, to be provided to the Law Society” (which will also “encourage legal workplaces to conduct inclusion surveys by providing them with sample templates.”) Failure to do comply brings with it the threat of serious penalties, including reputational damage and, more seriously, loss of the right to practice.”
++++++

Its not just the Law Society enforcing their will through the Ministry of Thought….its happening everywhere in govt, schools, and the workplace.
Orwell was wrong. 1984?
He should have named his book “Because its 2016.”

#193 crowdedelevatorfartz on 10.11.17 at 8:40 am

@#131 Spock
“If only it was so simple to ban T2 and His sidekick Bill”
++++++

Logic dictates it will happen in 2 more years…..or sooner if Baby Trudeau is arrogant enough to call an early election.
Trudeau and arrogance seem to be a genetic trait…..

#194 crowdedelevatorfartz on 10.11.17 at 8:48 am

@#167 Reality1
“Don’t think about it……”

*******

Apparently you didnt think either before you posted that.
A new low. Even for you.

#195 bankruptcy on 10.11.17 at 8:51 am

One day, the Pastor sees Matthew walking slowly out of Church. Matthew is dejected, disheveled and looks terrible.

“Matthew,” asked the Pastor, “what’s the matter?”

“Well, Pastor, my business is shot, I’m losing my house and my wife says she is going to leave me and take the kids if I don’t straighten things out. I just don’t know what to do.”

“Matthew, find the answer in the Bible,” the Pastor replied. And Matthew left.

Four months later, the Pastor sees Matthew coming out of Church, only this time, he’s wearing an Armani suit, a nice cap and lighting a big old cigar.

“Matthew, you look great! Did you follow my advice?”

“I did. I went home that day and decided to open the Bible and to follow the advice I saw. So I opened the Bible and the first phrase I saw said:

Matthew Chapter 11.”

#196 conan on 10.11.17 at 9:03 am

Liberals eyeing sales discounts as an off the book transaction that needs to be taxed.

I do not think they are going after the chicken sandwich Skippy. Maybe someone should look at that sweet heart oil deal between Alberta and the USA.

Looks like they are going after big ticket items. Purely the domain of the one percent. You can say what you want about Morneau, but he is the first Finance Minister who know all the loop holes that the rich use, and he is going after them.

#197 maxx on 10.11.17 at 9:04 am

“They had no allegiance. Does anyone these days?”

‘cept for a bunch of righteous howlers, Garth.

“And tomorrow we might not be together
I’m no prophet, I don’t know natures way
So I’ll try to see into your eyes right now
And stay right here, ’cause these are the good old days.”

Carly Simon, “Anticipation”.

#198 IHCTD9 on 10.11.17 at 9:04 am

#16 SimVan on 10.10.17 at 7:06 pm
Does anyone else feel like the only message we hear from every level of government in Canada is TAX TAX TAX TAX TAX!

It is relentless.

http://www.cbc.ca/news/politics/revenue-canada-employee-benefits-tax-1.4348076
__________________________________

I got that feeling the minute Trudeau was elected. At this point it doesn’t really matter, we’re swimming in government debt and liabilities, Trudeau is killing off jobs left right and center, and every attempt T2 has made to increase federal revenues has actually reduced them.

Hopefully folks on the blog have made good use of Garth’s advice here in keeping their households in good financial shape – I don’t see an end to our collective governments trying to make themselves bigger, better compensated, and better pensioned.

From here on in, the private sector which is under attack on all fronts will never recover enough to satiate the demand for revenue without taxation levels so high, it would only hasten the decline in revenue as employers and employees alike cut back, bail out, and slip under the waves (or the radar).

#199 Reality 1 on 10.11.17 at 9:08 am

to #194 crowdedelevatorfartz

Lost your sense of humour, have you ?
Missed the film reference, did you?
Didn’t read the OBVIOUSLY tongue-in- cheek DISCLAIMER, did you?

A little cranky are we ?
Still pouting after you diatribes about Russia and Putin?

Your comment is a new low -even for you Mr. Fartz.

But then again you probably think that Smoking Man is not simply a caricature of one poster’s imagination.

Thanks for confirming my suspicions about you. Anything that doesn’t confirm to your narrow experience and closed minded observation is no good in your books.

Look deep into your soul and concede that yes, others too have a warped sense of the comic – you don’t have a monopoly on that commentary.

LIGHTEN UP DUDE !

#200 Ian on 10.11.17 at 9:19 am

#165 Reality 1

It’s good to hear the solid comments about the Bombardier plane, and of course the country should be proud of that, but I still don’t think there should be corporate welfare for anyone. It’s so clearly political as a Quebec company.

Isn’t it corporate welfare that got them into trouble with the US in the first place? They should be able to prove they’re a viable business of their own accord.

No one came along to subsidise my dad’s Ontario manufacturing business when things got rough. We did get Kathleen Wynne’s electricity rates though.

#201 45north on 10.11.17 at 9:19 am

Bombardier: I supported Bombardier in its quest to make and sell the C-Series. I thought this was a Canadian company that deserved to succeed but I just read an article that changed my mind:

Boeing’s complaints about C Series subsidies are getting the media attention, but Bombardier’s willingness to transfer technologies and knowhow to China is at the heart of this trade dispute.

http://aviationweek.com/commercial-aviation/opinion-why-boeing-vs-bombardier-really-about-china

Boeing’s actions to block the sale of the C-Series is now perfectly understandable. Something’s wrong here.

#202 Bottoms_Up on 10.11.17 at 9:29 am

Loyalty to Sears….too funny. They faultered major on customer service, screwed up easy on-line orders, didn’t honour basic warrantees, didn’t carry high quality items ($60 polyester snowsuits in Canada….really?). The writing has been on the wall for a long time.

Great advice Garth about TFSAs and not relying on DC plans.

#203 the Jaguar on 10.11.17 at 9:34 am

Garth….see post #167

This isn’t funny. The so called disclaimer doesn’t excuse the content of the post. Occasionally there are often interesting, intelligent posts from this person, but more or less attacking someone in many of them.

Agreed. It has been deleted. — Garth

#204 Ian on 10.11.17 at 9:44 am

Re: pension risk / Sears

My friend works at Greyhound, which you may have seen on the news lately as coming very close to a strike.

They are owned by First Group PLC in the UK, so I read through the annual report closely looking for details about the Canadian operations, but unfortunately their reporting by geography only covers “North America” and the financials for Canada are not disclosed.

However, there is a choice paragraph in there where they discuss the Canadian operations, and what they say is clearly not good. I believe from what I am reading that it is loss-making.

The Greyhound Western Canadian operations were apparently waiting for the Ontario negotiations to finish before starting their negotiations with the company.

I’m advising him to leave and find a new job so he can save his pension. I’m worried they will raid the pension a la Sears.

To me a pension should NEVER be on the table in a bankruptcy proceeding. That money is owed to employees, not common stockholders.

#205 Gravy Train on 10.11.17 at 10:04 am

When the going gets weird, the weird turn pro.
— Hunter S. Thompson, the father of gonzo journalism

“Thompson had Richard Nixon’s political demagoguery figured out more than a decade before the rest of America caught on. But he was a voice in the journalistic wilderness, and his unorthodox lifestyle didn’t earn him much credibility. Hunter had a cult following, many of whom joined him in self-medicated psychological relief.

“The age of Trump is accompanied by a plague of drugs more likely to kill users than still anxiety, so we take him unfiltered. The primary mind-altering substance is the noxious, pernicious anemia dealt by Trump’s mouth and Twitter account, and pushed by his acolytes.

“Fear comes with contemplation of where the Trump presidency could take us. Loathing from knowledge of its source.”
http://thechronicleherald.ca/opinion/1510457-vibert-fear-and-loathing-in-trump’s-united-states-of-america

I thought SM might enjoy this article. What say you, Flopster? :)

— Jim Vibert, Saltwire Network

#206 Greg on 10.11.17 at 10:15 am

#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm
Do that again and you are gone. For good this time. — Garth

——————-

I have never commented before but do read this blog regularly. But imho this would be dangerous Garth. SCM brings a unique perspective and the debates his posts illicit I often find informative.

Yes his generalizations of conservative boomers deriving pleasure from other people’s pain is over the top and completely ridiculous. But I have heard similar generalizations about moisters in this forum that have not been met with the same banning implications.

I have also read some SCM comments that are informed and backed up with actual facts. They should stick to those. They are more work to research but they are far more productive and useful.

By forcing him to leave this forum it becomes more of an echo chamber where like minded people agree more often than not and in the process everyone becomes less informed.

And BTW I am neither a boomer or a moister. I am just a Gen Xer with young kids who worries they will never be able to afford a house. I, and all the boomers/Gen Xers I know derive no pleasure from a younger generations pain. Quite the contrary.

Just my 2 cents.

Too bad. S/he’s history. — Garth

#207 waiting on the westcoast on 10.11.17 at 10:17 am

#66 Smoking Man says “Starting to love Country music.”

Say it ain’t so… ;-)

#208 HaHaHa on 10.11.17 at 10:21 am

Oh my goodness. SCM is banned. Someone has finally said no. ouch

#209 waiting on the westcoast on 10.11.17 at 10:21 am

Is the troll gone??? ;-)

SCM – I’m sure you will enjoy politics as a career. Trolling seems to be the new ‘little black dress’ in that space.

#210 Where's The Money Guido? on 10.11.17 at 10:24 am

http://vancouversun.com/news/national/highest-proportion-of-high-rollers-at-river-rock-casino-are-real-estate-professionals-internal-audit
$250 million in one year at ONE casino in BC. There are 15 places to launder money from evidence in the Greater Vancouver area, 9 in Vancouver Island, 7 in the Okanagan, and 7 in the rest of BC, though I’m suspecting most are where the biggest gang concentration is, in Greater Vancouver and Vancouver Island-Okanagan, and guess what, that’s where most of the house price appreciation is.
That’s 38 places to launder money in BC. So now we know what’s up for sure and the BC Liberal gov’t ALLOWED it.
BC is the gangs’ Mecca, Nirvana, whatever you want to call it, with the RE people at the front. House prices will NEVER go down with the amount of drug money that is churned through the BC gangs, 5 or so years ago estimated to be $3 BILLION per year just for pot. No wonder we can’t buy any houses anymore because the new land barons are our own local street gang and HA affiliate.
Normal hard working legal citizens don’t have a chance, especially when the RCMP are bought and paid for, jmo, with evidence when the BC Liberals first came into power correlating with the start in the rise in housing .

#211 Julia on 10.11.17 at 10:25 am

#204 Ian
Sears didn’t raid the pension. They failed to contribute sufficiently to fund it. Contributions made by both employee and employer are safe.

Like I said, under-funded. How is that hard for people to understand? Benefits will fall proportionately. — Garth

#212 Dissident on 10.11.17 at 10:25 am

Not a lot of love out there for the impending OSFI rules. Makes you wonder if enough dissent will cause them to be cancelled? RE industry claims bubble already burst enough and prices are down 31% from spring, so why poke the bear. RE industry claims this will only send people into getting weirder, riskier, patchwork mortgage loans, the opposite of what OSFI is intending with this stress test.

http://business.financialpost.com/personal-finance/stricter-osfi-rules-on-mortgage-lending-will-do-more-harm-than-good-fraser-institute

#213 Dissident on 10.11.17 at 10:29 am

“Frankenloans” – New term coined for the resulting makeshift mortgages that OSFI rules will force people to get so they can own a home. Just in time for Halloween.

#214 Oakville Owner on 10.11.17 at 10:59 am

Sears news is not all bad news. Their competition will enjoy increased market share. Share holders of Sleep Country Canada (ticker # ZZZ) are up $1.32(3.48%) today so far. “Why buy a mattress/ invest anywhere else! Ding”

#215 Reality 1 on 10.11.17 at 11:07 am

to # 200 Ian

I tried to point out that Boeing / Airbus / Ebraer also receive “subsidy” for their products – only they are as not as obvious.

Boeing – given a number of ‘cost plus’ military plane contracts and the US gov’t pays all cost overruns plus pays for ALL R&D which directly benefits their commercial planes and allows economies of scale.

Airbus – same story as Boeing and has a built in clientele as Euro area flag carriers are pressured to “buy European” and also get plum “no tender, single source” contracts that others are shut out of

Embraer – has ALL state business except for airframes that they don’t have a model for – plus Brazil is notorious for payola (just look at the recent gov’t corruption)

Bombardier just has horrible optics and are too obvious in their receipt of subsidy – they just don’t have enough DofD and government business to pad prices like the others and so gov’t payments are more transparent.
Their arrogance and insensitivity to public opinion stupidity doesn’t help their public image. They will pay NO tariffs if NAFTA stays in place.

However, their products are very good – and Canadian taxpayers have contributed mightily to that, no question.

Canadians should be proud of their recent achievements, but I can see how the average person would take offense to what appears to be gov’t largesse.

#216 Eks dee Sipal on 10.11.17 at 11:21 am

A very, very wise man once said: All economic systems (and businesses) based solely on greed will ultimately fail. – XD

ESL Investments likely generates at least a couple billion a year in personal profit for Eddie Lampert, (who was given 28M by Rudin to start off after accepting free money from the government to finish school-according to Wiki which means it is total hor$e$hit). That means even if Sears were losing 1M per day (fake news?), it would still amount to less than 0.05% of that clown’s annual income. I call him a clown because he worships both Ayn Rand and Buffett, whom we have exposed as fake characters. Also he was Phi Beta Kappa and Skull and Bones. Hmmmm….

Did I get the math right?

#217 Eks dee Sipal on 10.11.17 at 11:28 am

#173 Howard

“Is Canada so devoid of inspiration that it needs to appropriate crappy foreign companies to be its icons?”

We would have our own identity and icons if not for decades of Conservative rulers who bend over to US interests. You didn’t think I would spin it that way, did ya?

#218 DM in C on 10.11.17 at 11:34 am

That advice doesn’t make sense. Fully fund your TFSA, then dump $ into the RRSP and use the refund to fund your TFSA — but if your TFSA is full……

What am I missing here.

You have a spouse? — Garth

#219 I thinks I know something on 10.11.17 at 11:34 am

The modern global economy is a house of cards. It is based on huge, ever growing debt that results in asset bubbles. That is NOT sustainable. At some point something will happen. One real possibility is a global depression. What is the defence against that?

If you believe that, why are you a house-and-debt pumper? — Garth

#220 Gravy Train II on 10.11.17 at 11:39 am

#80 Smoking Man on 10.10.17 at 9:13 pm

I did another drunken smoking man post on Periscope last night. The difference being I was totally cold stone sober, academy award performance. ButI’ll never get one buy the looks of things going on in Hollywood you need be some sort of sexual deviant to get on the shortlist.

To writers out there what I’m starting to discover, getting good book sales, you definitely need a good product out there. But more important the writer has to be interesting, every time I do one of these I get min 3 book sales. Wierd.

I feel for these millennial lefty kids, no white picket fence is in their future. They blame boomers for their inability to make enough loot for a normal life. They drift toward communism. Their biggest enemy is the globalist. Yet their teachers have them so dumb down that they have no clue they are fighting the wrong enemy. In fact, they are fighting for the very people that fkd up their lives in the first place.

T2 is the globalist poster boy, and he’s not going make your life better. Floodgates are open with TFW.

Getting into the rehab business big time, with some passive investments in the funeral homes for the customers or clients I could not close.
__________________________________________
If that was acting then YOU SUCK. Get a day job at Tim Horton’s or McDonald’s to practice your Emmy speech. The reason you get action is you are the monkey in the cage at the Zoo and everyone wants to see what you will do next.

#221 Not A Victom on 10.11.17 at 11:39 am

Garth,

I thought you said DC plans were a gimme if the employer matched contributions? And aren’t DC plans safer than DB plans anyway?

Also regarding your advice to use a TFSA as a primary investment vehicle, wouldn’t it be smart for disproportionately high earners to first filter them through a spousal RRSP?

Thanks!

#222 Ian on 10.11.17 at 11:54 am

Email from LinkedIn just now, their top story…headline “Millions of jobs are disappearing”.

#223 TurnerNation on 10.11.17 at 11:58 am

Once one is accepting of fact that every human invention has become weaponized life becomes easier. Best defense is offence.

Inflation. ..continually attacking working families. Now two cannot even afford a home, cars, child care. Maybe with 30 years of deep debt slavery to bankers.

Millennials:
This poor fellow had a masters degree while manning for gas.

http://www.cbc.ca/news/canada/toronto/gas-and-dash-murder-guilty-1.4348640

#224 aa3 on 10.11.17 at 12:10 pm

That is the tax problem Canadian governments are in. Beyond a certain level~35% of GDP as taxation, further tax increases do not increase revenues.

In the past when the government was a smaller part of Canada’s economy, they could always raise taxes if they spent too much, and each marginal increase in the tax rates would bring in additional revenues.

So the USA that taxes ~30% of GDP has surpassed Canada in tax revenues per citizen, even as Canada taxes 40% of GDP. (the US being at ~$17,300 USD per citizen in tax revenues, and Canada being at ~$16,900 USD per citizen in tax revenues.)

The USA is now 36% more productive per capita than Canada. Americans produce in 9 months, what takes Canadians 12 months to produce.

As Canada moves deeper into socialism, the gap is growing each year in productivity.

#225 Keith in Rio on 10.11.17 at 12:49 pm

Bombardier makes crap aircraft. Plain and simple.

While I am merely self loading freight to an air line for the last dozen years I flew 100 segments annually and over 100K mIles.

The Bombardier CRJ is a POS and about 2-3 years into my odysey I started booking trips that avoided using that particular aircraft and writing letters to airlines chastising them for using it.

If their newest albatross was any good the market would have spoken. Trudeau forced Air Canada to by some……and that was it. Ypucan’t blame Delta for grabbing them on the cheap either as everything that airline does is on purpose to make your life as a PAX hell.

#226 Gravy Train on 10.11.17 at 12:57 pm

#220 Gravy Train II on 10.11.17 at 11:39 am

I know that I don’t have a copyright, trademark or patent on my moniker, but if you insist on using it yourself—rather than come up with something original—I’m afraid I’ll have to change mine to Sugar Daddy! :)

No one else has that handle, do they, Flopster? You seem to be the final arbiter in these matters. :)

#227 IHCTD9 on 10.11.17 at 1:23 pm

#219 I thinks I know something on 10.11.17 at 11:34 am

One real possibility is a global depression. What is the defence against that?
______________________

1. Solar panels and gasification
2. Big garden and a few chickens
3. Lots of ammunition

#228 jess on 10.11.17 at 1:29 pm

morphing

well some are being knocked down and replaced with housing or non shopping places e.g.
abandoned Galleria Mall – hosting dance parties. “Shoppers Dance Mart.”

who needs a kitchen?
A micro-apartment at the Providence Arcade mall in Rhode Island.

http://www.businessinsider.com/americas-first-shopping-mall-is-now-micro-apartments-2016-10

#229 Penny Henny on 10.11.17 at 1:30 pm

#224 aa3 on 10.11.17 at 12:10 pm

So the USA that taxes ~30% of GDP has surpassed Canada in tax revenues per citizen, even as Canada taxes 40% of GDP. (the US being at ~$17,300 USD per citizen in tax revenues, and Canada being at ~$16,900 USD per citizen in tax revenues.)

The USA is now 36% more productive per capita than Canada. Americans produce in 9 months, what takes Canadians 12 months to produce.

////////

That’s cause it’s colder up here.

#230 Ace Goodheart on 10.11.17 at 1:40 pm

Only retail outfits worth owning right now are grocery stores. The rest of the brick and mortar retail model is going to collapse as it becomes increasingly easier and less expensive to order goods on the internet.

I recently did a little comparison shopping. Boat tune up parts. Basically ignition stuff and some filters, for a fairly common late model Mercruiser setup.

Local marina: $600.00

Big box store in Toronto: $450.00

Online through a discount distributor based in the USA: $120.00 US.

I know, support local business and don’t buy American. But why in the world would anyone pay almost $300.00 more for the exact same product? It is almost like paying a tax.

Groceries. The only brick and mortar store still worth owning shares in.

Reason why? People like to pick and choose their vegetables and meat and bread products. It is fun to feel a pineapple for ripeness. It is interesting to find the loaf of bread with the best expiry date. Every sausage is different and you want just the right one….

Oh in other news, for what appears to be the first time in history, a US President seems to be threatening to revoke the broadcast licenses of any news organization which does not publish news that he agrees with.

I do remember other leaders doing this. However they were Italian and German and I believe also Russian, and they were attached to dictatorship type regimes.

#231 IHCTD9 on 10.11.17 at 1:47 pm

Too bad. S/he’s history. — Garth
___

When I saw her previous comment, I figured she’d lose her cool and open her big yapper again.

So long SCM, hopefully you’ll get smarter as you get older.

#206 Greg on 10.11.17 at 10:15 am

And BTW I am neither a boomer or a moister. I am just a Gen Xer with young kids who worries they will never be able to afford a house. I, and all the boomers/Gen Xers I know derive no pleasure from a younger generations pain. Quite the contrary.

Just my 2 cents.
___________________________________________

I am also a Gen X’er with young kids. I don’t worry about them ever owning a house, because the prices of houses are just fine – good deals are all over. I am surrounded by millennials who are doing great, and I expect my little gen Z’ers to do just as well, if not better – if they’re paying attention to what their Pops is saying. There’s only one real key ingredient that needs to be mixed in – that’s it.

#232 rainclouds on 10.11.17 at 1:50 pm

BC “Looking at all options” regarding housing. In concert with CRA this could get interesting..budget in Feb. BC Gov Commissioned Report on money laundering end of March.

https://www.bloomberg.com/news/articles/2017-10-11/government-eyeing-all-options-to-cool-vancouver-housing-market

#233 boonerator on 10.11.17 at 1:53 pm

I am one of the oldest boomers and I was just on my way out to destroy SCM’s life but darnit, my black cape is at the drycleaners and I cannot find my mustache wax.

#234 Lost...but not leased on 10.11.17 at 2:07 pm

#46 CrowdedEscalatorPutz

Another semantic argument.. re a “City center”?

Sears was THE first department store in Richmond,BC. opened around 1964
Later came The Bay, Zellers
At one time they also had Fields, Stedmans

Woodwards built separate Lansdowne Mall in 1977..the Woodwards chain shut down in 1992, it was 100 years old..IMHO it was one of the first casualties of the Asian influx.

Super Cities don’t work,..they are more costly to run as the bureaucracy increases and takes over and detached from the citizens

…Metro Vancouver is quite dysfunctional, morseo when the Metro boards try to run Translink.

#235 Lost...but not leased on 10.11.17 at 2:13 pm

Re Employee discounts

A person on another blog made a good point re banks whereby their employees receive a perk of a discounted mortgages, HELOC and other loans.

Would the Feds via CRA even DARE touch this?

If they did, it may trigger a great unravelling of the economy. Imagine attempting to tax that benefit..how/where does on start?

#236 DON on 10.11.17 at 2:13 pm

#210 Where’s The Money Guido? on 10.11.17 at 10:24 am

http://vancouversun.com/news/national/highest-proportion-of-high-rollers-at-river-rock-casino-are-real-estate-professionals-internal-audit
$250 million in one year at ONE casino in BC. There are 15 places to launder money from evidence in the Greater Vancouver area, 9 in Vancouver Island, 7 in the Okanagan, and 7 in the rest of BC, though I’m suspecting most are where the biggest gang concentration is, in Greater Vancouver and Vancouver Island-Okanagan, and guess what, that’s where most of the house price appreciation is.
That’s 38 places to launder money in BC. So now we know what’s up for sure and the BC Liberal gov’t ALLOWED it.
BC is the gangs’ Mecca, Nirvana, whatever you want to call it, with the RE people at the front. House prices will NEVER go down with the amount of drug money that is churned through the BC gangs, 5 or so years ago estimated to be $3 BILLION per year just for pot. No wonder we can’t buy any houses anymore because the new land barons are our own local street gang and HA affiliate.
Normal hard working legal citizens don’t have a chance, especially when the RCMP are bought and paid for, jmo, with evidence when the BC Liberals first came into power correlating with the start in the rise in housing .
************************

In light of new evidence. Quebec is no longer the corruption capital of Canada. (shaking my head – real estate professionals caught up in this – this won’t end well for a lot of people aside from forensic auditors). Forget about the new OSFI rules.

How will this affect the market sentiment?

Now I understand why Christy Clark and the BC Liberals/Conservatives were kicking, screaming and scratching trying to hold on to power. Geezus – is this the 1930’s repeating?

#237 AGuyInVancouver on 10.11.17 at 2:35 pm

#236 Don
In light of new evidence. Quebec is no longer the corruption capital of Canada. (shaking my head – real estate professionals caught up in this – this won’t end well for a lot of people aside from forensic auditors). Forget about the new OSFI rules.

How will this affect the market sentiment?

Now I understand why Christy Clark and the BC Liberals/Conservatives were kicking, screaming and scratching trying to hold on to power. Geezus – is this the 1930’s repeating?
_ _ _
All this just proves what some of us have been saying for years. It was clear vast amounts of illicit money was sloshing around the market and distorting it. It is not racism to ask for your governments (at all levels) to uphold the laws and to ensure working Canadians of all backgrounds have a fair shake.

#238 Nut on 10.11.17 at 2:40 pm

#73 Screwed Canadian Millenial on 10.10.17 at 8:59 pm
#41 Screwed Canadian Millenial on 10.10.17 at 7:49 pm
Do that again and you are gone. For good this time. — Garth
>>>>>>>>>>>>>>>>>>>>
Good move. Never coddle a malcontent.

#239 Tazi Bnu on 10.11.17 at 2:41 pm

@#73 Screwed Canadian Millenial.
“What did I do wrong Garth? I’m honestly asking. I would like to know. Please tell me. I’m honestly shocked by your threats to ban me. ”
___________________________________________

“Seek First to Understand, Then to be Understood.” – Stephen Covey in Seven Habits of Highly Effective People.

I think this might be a good place to start the growing up process.

M29ON

#240 Lost...but not leased on 10.11.17 at 2:44 pm

#177 NeverGiveUp

Sorry, politely disagree.

While not a fan of Gov’ts…I will agree that small businesses thrive in Richmond..so long as they cater to the Chinese demographic.

The vast majority of small businesses are Cafe’s and restaurants. Many businesses require fluency in Cantonese/Manadarin

How the major banks don’t get slapped with human rights complaints is beyond me. Their staff are almost 100% Asian.

Richmond is increasingly the laughing stock with all the crime occuring….the RiverRock casino is being exposed as a major center of massive money laundering..this as been known for years but the reports finally made public.

Illegal hotels, birth tourism, fentanyl labs…murders..

Etc.Etc.

It is not racist, nor requiring a rocket scientist to deduce that the “status quo” is out of control compounded by a clear lack of will by the authorities to do something…anything..

If you call that progress…OMG

#241 Ian on 10.11.17 at 2:46 pm

This startup company is fascinating! Maybe they can be engaged to analyse the Plozzer so we can finally figure out what the BoC is doing?

http://www.marketwatch.com/story/this-company-is-parsing-speech-patterns-on-earnings-calls-that-can-move-stock-prices-2017-10-11

#242 Howard on 10.11.17 at 2:55 pm

#217 Eks dee Sipal on 10.11.17 at 11:28 am
#173 Howard

“Is Canada so devoid of inspiration that it needs to appropriate crappy foreign companies to be its icons?”

We would have our own identity and icons if not for decades of Conservative rulers who bend over to US interests. You didn’t think I would spin it that way, did ya?

———————————–

Well no, I didn’t think anyone who reads Garth’s blog is that stupid.

There were no “decades of Conservative rulers” at any time in Canada’s history. Until 1984 Canada was mostly a one-party state due to Liberal hegemony in Quebec, and as of 2019 it will be roughly half/half Con/Lib in the 1984-2019 period. Canada is now run by a leftist post-modern globalist who doesn’t even think Canada should have its own identity and who prefers an independent Quebec to a united Canada where conservatives aren’t barred from governing.

And you’re complaining about conservatives?

#243 Julia on 10.11.17 at 2:56 pm

#235 Lost..but not leased
Re Employee discounts

A person on another blog made a good point re banks whereby their employees receive a perk of a discounted mortgages, HELOC and other loans.

Would the Feds via CRA even DARE touch this?

If they did, it may trigger a great unravelling of the economy. Imagine attempting to tax that benefit..how/where does on start?

**********
I am a bank employee and yes we do get discounted rates but there is a CRA set prescribed rate whereas as long as our employee rate is above we are not taxed, if below there is a calculation of a taxable benefit.

For retail employees discount, I think the concept should be that any out of pocket cost to the employer should be taxable (i.e. free or below cost) and a discount that remains above cost should not.

#244 Howard on 10.11.17 at 2:58 pm

SCM will be back when s/he buys a new computer or gets a new smartphone.

#245 NEVER GIVE UP on 10.11.17 at 3:03 pm

#65 Respect Women on 10.10.17 at 8:40 pm
You need to respect women in today’s workplace if you want to remain employed in your career.
That means that you shouldn’t criticize a woman on how she works, how she performs her duties, how she dresses and forbid any locker room talk which sexualizes women.
====================================
OK but I like women who wear heels when they serve my drinks. they get an extra 10% tip!

#246 Ian on 10.11.17 at 3:11 pm

#211 Julia

It’s the same result though. That just means money that was supposed to be in the pension was absconded for the co’s balance sheet.

#247 Report on 10.11.17 at 3:21 pm

The Teranet report for resale prices of September drops tomorrow.

My prediction (just a guess, really): Toronto down, Vancouver up hard, Canada somewhere in between.

#248 Stan Brooks on 10.11.17 at 3:27 pm

#16 SimVan on 10.10.17 at 7:06 pm
Does anyone else feel like the only message we hear from every level of government in Canada is TAX TAX TAX TAX TAX!

It is relentless.

http://www.cbc.ca/news/politics/revenue-canada-employee-benefits-tax-1.4348076
_______________________

They are not changing the law.
They are just changing the rules that interpret it, which basically is the same, even worse.

As I have says countless times:

When the laws are subject of subjective interpretation by a politically influenced bureaucrat, you do not stand a chance.

Run. Just run as fast as you can.

#249 crowdedelevatorfartz on 10.11.17 at 3:29 pm

@#199 Reality1

Sorry.
Didn’t see the “humour” in your encouraging someone to jump “joke”.

I know 4 people ( ex coworkers, spouses of relatives, etc.) in the last 5 years that have committed suicide.
The last one was a jumper.
Don’t know if its an age thing , a money thing, a lost job thing. Whatever.
Dead is dead.
And while people have their personal demons. They have no idea of the carnage their actions leave in their wake to friends and family.
So….there you have it.

#250 crowdedelevatorfartz on 10.11.17 at 3:33 pm

@#234 Lost in Richmond ‘s core

Richmond …..A suburb of Vancouver…and , according to Metro Vancouver air quality complaints……..

The stinkiest place to live in the Lowerbrainland…

Congrats!

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwippNLtp-nWAhXErFQKHdIxDeYQFgg4MAM&url=http%3A%2F%2Fwww.cbc.ca%2Fnews%2Fcanada%2Fbritish-columbia%2Frichmond-organics-odour-problem-1.3823540&usg=AOvVaw3nR4US–L3L_pNVyd84xFN

#251 Stan Brooks on 10.11.17 at 3:36 pm

ww.cbc.ca/news/politics/revenue-canada-employee-benefits-tax-1.4348076

Interesting interview.

It seems employers now will now need to track all the benefits that employees receive, including employee discounts, and include that in the employees T4 form.
Actually this is not a new law, the law always required it, but there was a loophole with the application of the law which is now being removed.

Imagine a list like the following added to your T4 form:

July 10 – corporate party:

1. 2.5 slices of pizza (yes they need to track exactly how much pizza and what kind you consumed so it can be taxed at the fair value, it is all about fairness!) – 8 $ CAD
2. 1.5 cans of pop – 1.50 $ CAD
3. 4.2 ounces of salads in a salad bar, discounted – 2 $ CAD

taxable amount – $ 11.50 CAD

No, I am not joking.

As for Ford employee discounts,just wait….

#252 Overheardyou on 10.11.17 at 3:37 pm

#65 Respect Women

You need to respect women in today’s workplace if you want to remain employed in your career.
That means that you shouldn’t criticize a woman on how she works, how she performs her duties, how she dresses and forbid any locker room talk which sexualizes women.
Heed my advice, because you have a feminist Prime Minister. You need to respect women as if they are God. Your sons must learn to listen to a woman, even if it goes against your values such as pre-martial relations. Women rule Canada. RESPECT WOMEN.

RESPECT HUMANS. Did you forget we’re working towards equality and neutrality? Women sexualize men just the same. Just look at Guess and Calvin Klein.

#253 S/he’s history on 10.11.17 at 3:42 pm

Too bad. S/he’s history. — Garth

—-

Censorship is not a solution. Endless proof throughout the history.

Also, would this apply how real estate agents, as a profession are mentioned here systematically:

“By demonizing entire groups of people in such language, suggesting everyone of a certain profession takes profit in screwing over others, you invite scorn.”?

#254 Stan Brooks on 10.11.17 at 3:45 pm

The strong head is not backing down.

http://www.cbc.ca/news/business/morneau-tax-changes-1.4343535

#255 rainclouds on 10.11.17 at 3:56 pm

#236 Don and Guido

There is a reason international press referred to BC as the “wild west” corrupt to the core. Skeletons coming out of the closet. Weekly

Site C
Money laundering at casinos, investigation shut down in 2015.funding axed.
Fraser river bridge. 0 consultation.
Obscene separation packages for liberal fartcatchers.
BC RAIL (wtf happened there)
Cash for access (developers filling the trough)

We ain’t seen nothing YET.

Ex premier Clarke bolted in a hurry. Uncharacteristically quiet since.
More turds to come no doubt. Horgan looks like the pope compared to those greasy shysters.

#256 Stan Brooks on 10.11.17 at 3:58 pm

Exporting cheap oil from Alberta to US through Keystone pipeline while east provinces buy expensive oil on international markets is a sound decision according to Moroneau.

The economy is going very well, according to him:

http://www.cbc.ca/news/business/morneau-tax-changes-1.4343535

Everything keeps him up at night as a finance minister.
Everything? Really? Including adult movies on Internet.

We are doing better than we expected.
So many new jobs, engine for continued growth.

Keep investing in Infrastructure (not east pipeline though)
People have more disposable income, this is huge success.

Our digital technology needs to be world class (so let’s whack the small IT Businesses).

Investments have to be in active Businesses.

He has no regrets.

————————————–

Sigh,

No, this is not a lunatic in a mental institution, it is our financial minister.

#257 Hamilton on 10.11.17 at 3:59 pm

Lets get back on track people its a housing blog.

Saw this today http://www.canadianrealestatemagazine.ca/news/shifting-real-estate-market-low-incomes-drive-debt-in-kitchenerwaterloo-region-232170.aspx

Was surprised that they printed it! Your thoughts Garth?

See below,
In its latest study, insolvency firm Hoyes, Michalos & Associates revealed that the average unsecured debt of those filing for insolvency in the Kitchener-Waterloo region and Wellington County is $48,437, slightly lower than the Ontario average of $52,634.

The report defined unsecured debt as credit card debt, unsecured bank loans, income tax debt, and student loans.

The study added that while the average unsecured debt of those who file for insolvency has decreased over the last few years, the phenomenon remains largely driven by a changing housing market and a downward trend in household income.

“The reason for that is people are getting into trouble and having problems servicing their debt at lower levels,” co-owner Doug Hoyes told CBC News.

“In August, only 6% of our clients actually owned a home at the time they filed a bankruptcy or a proposal,” Hoyes added, noting that this is the lowest level he has seen for that metric.

This proportion has slightly gone up since then, which Hoyes attributed to falling house prices, especially considering the recent interest rate hike. He stated that homeowners who hold large unsecured debts seem to prefer filing for insolvency rather than using their homes to repay these obligations, even in part.

“We’re going to keep a real close eye on [the number of people filing for insolvency],” Hoyes said, “Real estate has a huge amount to do with debt and the economy in general.”

“We deal with lots of people who are working two part-time jobs because they can’t get one full time job,” the executive explained. “And as a result of that constrained income, it becomes harder and harder to service the debt.”

#258 crowdedelevatorfartz on 10.11.17 at 4:03 pm

@#243 Rainclouds

BC Rail.
The RCMP “investigation” was shelved immediately after the BC Liberals awarded a 20 service contract to the RCMP……..

Not to mention that The lead RCMP investigator was the husband of Christy Clarks, press officer.

No conflict there.

#259 Banned Canadian Millenial on 10.11.17 at 4:06 pm

BANNED

#260 Sigh on 10.11.17 at 4:09 pm

#206 Greg on 10.11.17 at 10:15 am

I am just a Gen Xer with young kids who worries they will never be able to afford a house.

It seems the whole purpose of life is a house. This is beyond stupidity!

#261 tccontrarian on 10.11.17 at 4:16 pm

Some notables are worried about the state of the markets:

“A buoyant and complacent stock market is worrying Richard H. Thaler, the University of Chicago professor who this week won the Nobel Prize in economics.

‘We seem to be living in the riskiest moment of our lives, and yet the stock market seems to be napping,” Thaler said, speaking by phone on Bloomberg TV. “I admit to not understanding it.’ ”
———————————————————-
https://www.bloomberg.com/news/articles/2017-10-10/nobel-economist-thaler-says-he-s-nervous-about-stock-market

#262 Just saying thanks to Greg Canadian Millenial on 10.11.17 at 4:18 pm

I was just trying to say thanks for the kinds words to Greg.

#263 DON on 10.11.17 at 4:32 pm

@Raiclouds, Guido, Crowded, Vancouverguy.

Yup! More scandals by the week. Why hasn’t the corporate press asked questions of the BC Liberals? RCMP have their 20 year deal what about the newsreaders – ad revenue in a dying spin business.

How do you think this will affect market sentiment? It is all about perception.

#264 jess on 10.11.17 at 4:37 pm

http://www.scmp.com/news/world/united-states-canada/article/2113889/china-linked-crime-probe-vancouver-student-his

#265 Reality 1 on 10.11.17 at 4:42 pm

to # 249 crowdedelevatorfarts and all blog dogs

Just to be clear and full disclosure.

My sister committed suicide about 10 years ago, predeceasing my aged parents and breaking their hearts.

Accordingly, I am sensitive to people that have suffered such a loss, even if not immediate family.
However, I intended the posting to be strictly comedic and certainly not to trivialize such tragedies.

My bad.

My reference was to an obscure movie and the DISCLAIMER was the punch line.

It was intended to poke fun at the Smoking Man caricature who posts here and to tease him about his habit of puking out his alleged “personal” details ad nauseum.

Sincere regrets for resurrecting painful memories for you or anybody else who may have been offended.

Having said that, perhaps it is best that I take my insights and opinions elsewhere as I detect that I am a little too ‘hard core’ for this audience.

#266 Happy Housing Crash on 10.11.17 at 4:47 pm

You dirty SHYSTERS don’t get it. It’s all because of you the government is looking for taxes. PEOPLE are NOT paying their property taxes or even income tax. WHY? HOUSING IS IN A BUBBLE. You dirty evil SHYSTERS have ruined the Canadian economy. People are maxed out and BROKE. Home owners have NO INTENTIONS of even paying back mortgage and in fact take out HELOCs. We have home owners who haven’t paid down any of their mortgage debt. Took out HELOC’s to survive. They stopped paying property and or income tax. You DIRTY SHYSTERS are true scum. You and mortgage brokers who committed mortgage fraud to qualify people who have no business owning a home. You dirty SHYSTERS get people worked up in a frenzy to buy houses plus you lobby government to loosen rules for all this to happen.

#267 Stone on 10.11.17 at 5:00 pm

#222 Ian on 10.11.17 at 11:54 am
Email from LinkedIn just now, their top story…headline “Millions of jobs are disappearing”.

——

I’m sure that’s true. But it’s also true that millions of jobs are also being created. Just different ones.

#268 crossbordershopper on 10.11.17 at 5:06 pm

go to america, why do you care about all these rules up here, tfsa limits, ofsi rules? so sears is closing, when did anyone go there anyway, havent been in a sears i think since the early 90’s.
the world is changing, no loyalties, big companies from the past are todays relics of the past.
look after yourself, make more money pay less taxes, get better weather year round. USA, ya ya it has problems, like Canada doesnt

#269 n1tro on 10.11.17 at 5:12 pm

#206 Greg on 10.11.17 at 10:15 am

By forcing him to leave this forum it becomes more of an echo chamber where like minded people agree more often than not and in the process everyone becomes less informed.
———————
You are reading a contrarian site about housing and investing. If it is an “echo chamber” then that is a good thing. You want different opinions and divisiveness, then go talk to the general public and see what insight you get.

#270 DON on 10.11.17 at 5:16 pm

#265 Reality 1 on 10.11.17 at 4:42 pm

to # 249 crowdedelevatorfarts and all blog dogs

Just to be clear and full disclosure.

My sister committed suicide about 10 years ago, predeceasing my aged parents and breaking their hearts.

Accordingly, I am sensitive to people that have suffered such a loss, even if not immediate family.
However, I intended the posting to be strictly comedic and certainly not to trivialize such tragedies.

My bad.

My reference was to an obscure movie and the DISCLAIMER was the punch line.

It was intended to poke fun at the Smoking Man caricature who posts here and to tease him about his habit of puking out his alleged “personal” details ad nauseum.

Sincere regrets for resurrecting painful memories for you or anybody else who may have been offended.

Having said that, perhaps it is best that I take my insights and opinions elsewhere as I detect that I am a little too ‘hard core’ for this audience.

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

We have all be off side at one point trying to insert humor. Stick around Reality1 – as you have a lot to offer.

#271 DON on 10.11.17 at 5:18 pm

Reality1

If you aren’t already…watch a letterKenny episode.

#272 Lost...but not leased on 10.11.17 at 5:29 pm

Re: Drug Money

A while back I read an article that stated that the big crash in 2008 was significantly cushioned by the injection of funds from the drug cartels.

Doesn’t surprise me, if one goes all the way back to the Opium Wars and how many of today’s fortunes can be traced to such dubious enterprises.

Maybe look at Air America…the CIA is probably the biggest drug dealer in world….its a fact that they smuggled drugs in body cavities of US soldiers whose remains shipped to US from Vietnam.

Do people really think the various “peacekeepers” in Afghanistan are there to maintain law and order?

Basic point is…I don’t think we really have a handle on how big the illegal drug market is and its influence on the global economy.

#273 jess on 10.11.17 at 5:53 pm

https://panamapapers.icij.org/blog/20170406-power-players-update.

======
02 October 2017

On 25 September 2017, in one of the biggest EU investigations in recent years, led by the Polish Prosecutor’s Office and the Police Central Bureau of Investigation, a coordinated international operation targeting an organised crime group involved in the production and trafficking of drugs and psychotropic substances, as well as firearms trafficking, tobacco smuggling, luxury vehicle thefts and other offences, has resulted in the arrest of 43 individuals.

Law enforcement agencies and judicial authorities from Germany, the Netherlands and Poland, supported by Europol and Eurojust, carried out a simultaneous action targeting this organised criminal network in their respective countries.

More than 330 police officers executed 75 house searches in Poland. As a result, 43 individuals were arrested, and firearms, substantial quantities of drugs, fake euro banknotes, and cigarettes without excise stamps were seized, among other evidence.

To support the investigations, various coordination meetings were held at Europol and Eurojust prior to the joint action day. On the action day, a coordination centre was set up at Eurojust’s headquarters in The Hague. Europol deployed several experts to the involved countries equipped with mobile offices to assist the operations on the spot.

The suspects are charged with dozens of crimes, including participation in an organised criminal group, production of over 900 kg of amphetamine, intra-community acquisition of narcotic drugs and psychotropic substances, trafficking of significant quantities of drugs, firearms trafficking, possession of firearms and ammunition without the required authorisation, theft of luxury vehicles, and a number of other criminal offences. One of the suspects is charged with attempted murder.

The prosecutor secured assets valued at PLN 4.5 million, freezing real estate, luxury cars and PLN 500 000 in cash.

#274 Lost...but not leased on 10.11.17 at 6:28 pm

#243 Julia

Bank employee discounts have been around for a long time….so not surprised, as you inform, that CRA has reviewed and approved it.

However… we have a fiscally ravenous Federal Gov’t (lead by T2 and Moroneau) that seems a wee bit out of control in its zeal to attack and demonize the private sector, even to the point of employee discounts as some sort of quasi mortal sin. ( ie like bank employee discounts are olde news)

My point is this T2 Gov’t seems to go on the CRA threat- attack first…then wait for recoil mode of a Po’d public.

In other words. CRA may have approved your bank employee discount, but when SHTF…everyone starts the fingerpointing at previous exceptions. ….which simply creates a bigger mess..especially if they go retroactive.

PS..would you be willing to tell us what the CRA approved bank employee discount is?

#275 Julia on 10.11.17 at 7:19 pm

#274 Lost

The CRA prescribed rate is on their website, 1% at the moment – reviewed periodically.
Won’t disclose my discount but it’s above the prescribed rate, always has been.

#276 Wack on 10.11.17 at 11:16 pm

I miss Harper!
He was such an ogre though?

#277 Shaggy on 10.12.17 at 8:33 am

“RRSPs are fine for certain uses, but they make after-tax money taxable again. — Garth”

You lost me on this one, Garth. Appreciate if you could elaborate. My understanding is you make the contribution with after tax dollars, and you get the tax back in the year that you claim. Your investment grows tax free, and is taxed on withdrawal (hopefully when you have a lower marginal tax). The way I see it, the funds (contributions and gains) are only taxed once, on withdrawal. What am I missing?

Thx

#278 Randy on 10.12.17 at 10:48 am

Canada is becoming the socialists dream….where there are only Government Jobs and everyone else gets guaranteed annual income.

#279 DC vs DB Pension Plans on 10.12.17 at 11:48 am

Garth, several people have commented about the error on your DC comment, but you keep rejecting them. Take it from an actuary, you have things mixed up this time and you need to listen to all your devoted readers (#6, #45, #69, #90, #122, #175, and #221) who are trying to correct this!

“DC corporate pensions are inherently wonky, nothing more than glorified group RRSPs which often end up in a bunch of under-performing mutual funds.”
Agreed, although if you are careful with selections you can minimize the investment fees.

“When even a corporate titan like Sears can fold, exposing an under-funded plan that immediately warns members of benefit cuts, nobody’s safe. Do not make this the pillar of your retirement income plan.”
Sears has a DB pension fund – NOT DC. Sears’ DB pension is under-funded so people are now losing some of the “guaranteed” benefits they were promised. So completely agree that you should not make a DB pension plan the pillar of your retirement income plan.

DC pension funds are individual accounts which both the employee and employer contributes to, but this money always belongs to the employee from the start. You can’t lose this money. The risk here is, well, the under-performing mutual funds you mentioned above. But you won’t lose any of these funds. Even if the company goes under.

#280 Aragon on 10.12.17 at 10:24 pm

“Everybody should strive to maximize their TFSAs, then ensure the money stays in there, invested in diversified growth assets like equity ETFs. Remember – a hundred bucks a week invested here for 30 years making 7% will end up being $532,000. That should yield an annual income of $32,000 without depleting the principal and without reducing your CPP or OAS payments by a single penny. So this is job one.”

Garth, how can a half a million balanced portfolio generate 32K in income? That is roughly 6% income which seems hard to imagine. I have a reasonably balanced ETF based portfolio about the same size that only generated about 15K in dividends and distributions last year.

What am I missing?

#281 Goerge Posada on 10.13.17 at 10:56 am

Love it:
The best defence against being Searsed is to never let anyone fire, terminate or lay you off. That happens when you create your own job. Start a small business and work your heart out. Build and sacrifice to achieve financial independence plus freedom from the tyranny of a disloyal corporation. Your employee friends will hate you, and vote for Justin & Bill. Still worth it. Now and forever.