The unfunded

It may be sometime before Christmas when the 16,921 members of the Sears Canada pension plan, mostly retired, discover how scrooged they are. Things don’t look cool. The company’s in liquidation and the dirt-cheap prices shoppers were hoping to vultch in the doomed stores aren’t there. Without big sales, Sears won’t be able to top up its plan. Retirees will have to live on more KD and less Netflix.

The Sears Canada saga isn’t just about online stores whacking physical ones, or a tale of board room incompetence. Why the company’s bankrupt and disgraced is irrelevant to its pensioners. They just want their cheques.

Sears’ plan is in deficit by about $300 million, thus it can pay only about 80% of the benefits people were expecting. Lawyers are trying to get pensioners first-in-line when all assets are liquidated, but may not succeed. The retirees have already lost their benefits – dental, health and life insurance. (By the way, Bill Morneau’s family company – Morneau Shepell – administers the Sears plan, which has been chronically underfunded.)

Here’s the key point: Sears is not unique. Its workers, who believed their defined-benefit pension plan was stable, aren’t alone. Millions are in (potentially) the same boat – if their companies flounder retirement benefits are not guaranteed, since the plans are currently in deficit. Have you checked your employer out lately?

Nortel workers were shocked to learn their supposed gold-plated pensions were Hoovered by a third, then spent eight years waiting for restitution (it didn’t come). And if you have one of those rare defined-benefit pensions (benefits carved in stone and not subject to market fluctuations), don’t be smug. In Ontario alone DB plans have a $37-billion deficit. Over 80% are not fully funded.

Governments don’t care too much, it seems. Ontario companies can let pension plans go 15% into the red before they’re required to put more in. Shockingly, 60% are in that condition – and that’s for healthy employers. Not carcasses like Sears, which can slide much further.

Meanwhile, pensions in general are being erased. In 1977, says Stats Canada, 52% of us has a pension plan (either defined benefit or group RSP) but by 2011 that had shrunk to 37% – and continues to slide. It’s reasonable to conclude today that about 70% of us are not even as fortunate as Sears Canada workers. There’s no safety net for those years after work.

But what about the new, enhanced, rich CPP our finance minister keeps bragging on? Here’s what he had to say a few days ago:

“As joint stewards of the CPP, the Government of Canada and Canada’s provincial governments reached an historic agreement on June 20, 2016 in Vancouver to strengthen the CPP and meaningfully reduce the risk of Canadians not saving enough for retirement. The CPP enhancement is now a reality. The strengthened CPP will increase the maximum CPP retirement benefit by about 50 per cent, providing more money to Canadians when they retire, so that they can worry less about their savings and focus more on enjoying time with their families.”

Do not be deceived. Higher contributions from workers begin in 2019, then benefits will increase slowly starting in 2026. The average worker will receive $4,000 a year more than today, but that maximum will not be reached until 40 years later. Yes, in 2065. If you’re 15 today, you’ll get a little more in about half a century. For the rest of us, well, pfft.

The message of this depressing post is simple. You’re on your own. With the majority of pension plans underfunded, with 70% of us lacking one entirely (that includes my job) and with CPP never intended to actually support anyone in retirement, loads of people are going to cease working and enter a financial crunch. Sure, they can sell a house, but if the real estate market’s in a cyclical downturn at the time that strategy could fizzle. Houses get illiquid fast. And you can’t auction off a bedroom to get quick cash to live on.

The best strategy is to start a liquid investment portfolio early, then feed it relentlessly. As mentioned here with nauseating regularity, the TFSA is the place to start. Get a hundred bucks in there every week for three decades and end up with $532,000, which can generate about $35,000 a year in tax-free income. Add that to your CPP and OAS, and you can look forward to living elsewhere than under a bridge.

Of course, if T2 had kept the TFSA limit at $10,000 a year, a diligent saver who is now 30 years old could have $1.063 million at age 60, kicking out about $70,000 a year, tax-free, while retaining the principal.

Seems the politicians would rather have us poor and dependent. Wonder why?

195 comments ↓

#1 El Gringo Salado en el Rio Frijoles on 11.12.17 at 3:02 pm

I highly recommend this read for all you pushy, hard headed (don’t deny it!) BDs out there:

https://www.amazon.com/gp/product/1627792651/ref=oh_aui_detailpage_o00_s01?ie=UTF8&psc=1

Also, here’s a very good investment:

https://wefunder.com/lppfusion

It’s not good for you but for a long shot for future humanity. You’re about as likely to get your money back from this one as you are to lose it following Garth’s golden advice.

#2 Kurt Edwards on 11.12.17 at 3:17 pm

“Seems the politicians would rather have us poor and dependent. Wonder why?”

I’ll bite. We live in a democracy. Our federal system is not dominated by old money and vested interests the way the American system is. To a truly unpleasant extent, our federal government reflects the values and priorities of our citizens. Those priorities are “more of the services I personally benefit from” and “less tax for me to pay”. So we get shallow, ineffective, late responses to fundamental problems. The right time to address the problems you list here was 1985 (vis your nice graph, and what I was looking at around me in 1985.) The right response is open to debate; however, the “government support” approach would have involved expanded contributions in 1987. You, Garth, by relentlessly demanding lower taxes for your target demographic, without at the same time attacking services that your target demographic benefit from the most, are part of the problem. I’d take your position on taxes for doctors’ professional corporations much more seriously if you also advocated for much reduced spending on doctors’ salaries. I acknowledge that the personal financial advice you provide is good, but your political positions are simple and easy pandering, and you could be a lot better than that. If democracy is failing us, the solution is not better politicians, the solution is better citizens. Your blog provides you a unique platform to educate Canadians, and to raise the political game by encouraging them to think in terms of difficult trade-offs in the interest of better outcome for the whole. If you think your current approach is doing that, I suggest you think again.

More tax & more government is not the solution. – Garth

#3 dosouth on 11.12.17 at 3:19 pm

All your calculations are great, until, in 10-20 years the world has changed yet again and investment house/banks declare insolvency or Bernie Made-off with our cash.

Better yet read articles and find out how all the “Panama/Paradise” paper “investors” have been able to screw middle class earners out of their fair share of taxes.

My point being, the investment plan of today is just that, for today. Keep a close eye on your cash, and trust no one, as with your health you are responsible for the outcomes.

#4 Gurdeep on 11.12.17 at 3:19 pm

Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit.

#5 For those about to flop... on 11.12.17 at 3:29 pm

Pink Pumpkins being carved in Vancouver.

This house was picked up for 2.25 in October 2016.

Assessment comes in at 2.33

Might get lucky that is on the lower end in that area but it hasn’t helped yet…

M43BC

1725 MARINE DR SW,Vancouver.

Jul 25:$2,590,000
Nov 10: $2,490,000
Change: – 100000.00 -4%

https://www.zolo.ca/vancouver-real-estate/1725-sw-marine-drive

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

#6 KT on 11.12.17 at 3:29 pm

Another great wake-up call .. thanks Garth

#7 Dean McGibble on 11.12.17 at 3:29 pm

Garth,
Is it in Scheer’s platform to restore TFSA contribution limits to 10,000k per annum?

#8 None on 11.12.17 at 3:30 pm

This post is so full of contradictions that it’s dizzying.

#9 Andrew Woburn on 11.12.17 at 3:34 pm

Here’s how Canadians could walk away from their homes if house prices fall

http://www.macleans.ca/economy/realestateeconomy/heres-how-canadians-could-walk-away-from-their-homes-if-house-prices-fall/

#10 Andrew Woburn on 11.12.17 at 3:40 pm

Sign of the times?

“Fairfield apartment project will be rental, not condo”

http://beta.timescolonist.com/business/fairfield-apartment-project-will-be-rental-not-condo-1.23091106

#11 Sceptical on 11.12.17 at 3:48 pm

I would argue that moderate taxes and moderate government services are necessary. Any place the conservative low tax and less government plan has been implemented has been worse for the country. (Examples: Pinochet’s Chile, US since Reagan). It’s just bad. I don’t know why this fantasy has persisted when results have not followed. It just leads to greater social ills and greater inequality.

#12 prairie person on 11.12.17 at 3:48 pm

Garth, this is off topic to today’s post but in response to repeated comments of yours over the years plus the current situation of my family. My daughter and son in law just bought a town home for their daughter. I know, I know, she didn’t earn it (this is BC) but buying your kid a house or at least paying the downpayment has been, as long as I can remember, a normal practice, especially as a wedding present in some ethnic communities. I don’t know what is normal for Anglos but among the people I hang around with, it has always been something that is frequently done. I think we believe that it is better to give with a warm hand than a cold one–if one can afford it. The problem is when people can’t afford it and place their finances at risk. That’s not good. If you can afford it, why not keep the kids from having to pay the banks interest?

#13 Dolce Vita on 11.12.17 at 3:57 pm

Figured that all out at least 15 years ago, before retirement. Writing was on the wall, you just had to look for signs (i.e., underfunded pensions, no 30 yr. gold watches, CPP amounts, etc.).

Why I saved and invested and not rely on anyone else to fund my retirement. Ended up not rich, but not poor either.

The DB pension I did get pays for living expenses and a lot travel, never touch investments and proceeds.

Not surprised what you write about. When talking to fellow Boomers 15 years ago about pension, few seemed concerned, well, until now and too late.

Hopefully, the GenX and Millennials that reat this Blog will take heed of what you say and not rely on a single asset to fund their retirement. You will need more than that…

#14 Pulp Faction on 11.12.17 at 3:58 pm

The roads were really slick today….
But nothing’s as slippery as a Federal Finance Minister with offshore accounts.

#15 JfromH on 11.12.17 at 3:58 pm

Isn’t some of the pension shortfall exaggerated by excessively low interest rates which are used to discount the pension liability?

As benchmark interest rates rise (normalize) the pension liability will be discounted at a higher rate resulting in a smaller pension liability while pension assets grow with market returns. Therefore making pension shortfalls somewhat transient?

#16 Randy Randerson on 11.12.17 at 4:00 pm

#4 Gurdeep on 11.12.17 at 3:19 pm

Hahaha, to make it fair when most Canadians are poor af? While he put his money in overseas tax heaven?

Good luck hoping T2 will fund your retirement, I sure don’t. Case in point, I’m late 30’s and sitting on a 6 figure liquid asset right now.

#17 Kurt Edwards on 11.12.17 at 4:03 pm

“More tax & more government is not the solution. – Garth”

Weak, flippant, and unhelpful, and still caters to your target demographic. What trade offs should we focus on? Man up buddy, which services that benefit your target demographic should we cut? Take your time. Think about it. You’re a smart guy, I know you can do this. Take your giving back to Canada to the next level, and help make better Canadians.

#18 I don't think so on 11.12.17 at 4:05 pm

@ #4 Gurdeep

“Trudeau is extremely intelligent…”

I am just going to leave this here:

https://m.youtube.com/watch?v=_Roje9Ja8OQ

#19 Ace Goodheart on 11.12.17 at 4:10 pm

RE: “The message of this depressing post is simple. You’re on your own . . . Seems the politicians would rather have us poor and dependent. Wonder why?”

You’re eff’d anyway. Here’s why: Look at what Wild Bill tried to do to the retirement savings of small business people. Basically, vacuum them out as “dead money” and pay it all into Federal Govt bank accounts.

Why did he do this? I don’t know, but I have a hunch. His family firm appears to be heavily involved with government pension plans. My guess is he realized that these plans are hopelessly underfunded, and decided to recapitalize them, using the retirement savings of the self employed.

This is why you’re eff’d no matter what you do. Follow the rules, put your money in investment vehicles that are perfectly legal, follow all of the tax laws, and then when the govt runs out of money, they just hoover you anyway. Change the rules. Sorry, your retirement money is needed to pay for our public servants. You can keep 30%, we’ll take 70%. Thank you!

Any wise investor would be looking to off shore their retirement money. Find a place with a stable, honest government, and put your investments there. Unfortunately, Canada is not that place anymore.

#20 Stone on 11.12.17 at 4:11 pm

The best piece of advice to give is this:

No one has your best interest at heart except you. Don’t rely on CPP, a defined benefit plan or anything else. Save more than you spend and invest in a balanced and diversified portfolio – rinse and repeat over and over again.

And when the time comes, if there is CPP or a defined pension plan (if you didn’t commute it earlier), be happily disappointed I was overly pessimistic.

That was the advice given to me when I was younger and I made good use of it. I’m happy with the outcome. 8.58% YTD and sitting on a nearly seven digit balanced and diversified ETF portfolio at 42. Investing in yourself pays big time.

Be different. Don’t be part of the sheeple. They aren’t your friends.

#21 PAM on 11.12.17 at 4:13 pm

#4 Gurdeep
Please enlighten us…

#22 paul on 11.12.17 at 4:16 pm

4 Gurdeep on 11.12.17 at 3:19 pm

Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit.
——————————————————————–You lost me at Trudeau is extremely intelligent.

#23 A Yank in BC on 11.12.17 at 4:23 pm

Hypothetical question. What if everyone saved properly (say 15% of income) for their retirement? What effect would that have on consumer spending, on which the economy is supposedly so dependent? I have a feeling it would certainly crater home prices.. really quickly.

#24 For those about to flop... on 11.12.17 at 4:29 pm

Pink Pumpkins being carved in Burnaby.

Hard to see this one not ending in tears and is definitely only one of a few that didn’t even try to get all their money back from this flip gone wrong.

They paid 2.01 in July 2016 with an assessment that supports it.

Not too sure if they will be mad at the realtor that suggested that they pay that price or the current realtor starting the recovery mission too low.

Could be the same person,but unlikely as if it goes anywhere near ask it will be roughly tied for biggest percentage loss and expenses will push it over the top.

They have some soul searching to do and find someone to Blaine…

M43BC

1582 Blaine Avenue, Burnaby

Jul 13:$1,682,000
Nov 9: $1,599,000
Change: – 83000.00 -5%

https://www.remax.ca/bc/burnaby-real-estate/na-1582-blaine-avenue-na-wp_id192381019-lst/

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzV1pYRQ==

#25 Gentle ,Loving Kindness on 11.12.17 at 4:35 pm

#4 Gurdeep on 11.12.17 at 3:19 pm
Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit.
———
It sounds like “Gurdeep” is T2’s internet name.

#26 MSM-Free Zone on 11.12.17 at 4:43 pm

#4 Gurdeep on 11.12.17 at 3:19 pm
“….Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit……”
________________________________

Clever ≠ Intelligent.

t2’s (the tarnished hypocrite no longer deserves capitalization) reasons were pure optics directed toward the ill-informed voter. Nothing more.

#27 Sam the Sham on 11.12.17 at 4:45 pm

#2 Kurt Edwards on 11.12.17 at 3:17 pm

“Our federal system is not dominated by old money and vested interests the way the American system is. ”

This is the silliest thing I have ever read on this blog, and that’s saying something!!

#28 For those about to flop... on 11.12.17 at 4:45 pm

Pink Pumpkins being carved in North Vancouver.

These guys are getting down to the nitty-gritty now after the latest reduction.

Shelled out 1.63 in July 2016 if it goes for the current ask they will have to eat the best part of 70k worth of drywall.

Lucky for them there is a river nearby to wash the blood off…

M43BC

1880 Riverside Dr North Vancouver

May 2: 1.75

November 9 : 1.65

Change :99,112 6%

https://www.zolo.ca/north-vancouver-real-estate/1880-riverside-drive

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOEs2Ug==

#29 Hans on 11.12.17 at 5:00 pm

How long until the TFSA gets whacked by the government like the income trust robbery train that ran through everyone’s portfolio years ago? RRSP’s don’t make sense for most younger workers, regardless of the magic of compound returns. A worker making $40k/yr at an entry level job should make more by the time they retire. So contributing at $40K income tax level to save a pittance likely means withdrawing at $80K income tax level simply to keep afloat – that’s ignoring the demographic time bomb and need for higher taxes in the future. RRSP contributions are a bet hoping that you make less money in the future than you do now. IMO that’s not very likely.

Never happen. – Garth

#30 MSM-Free Zone on 11.12.17 at 5:07 pm

“…..By the way, Bill Morneau’s family company – Morneau Shepell – administers the Sears plan, which has been chronically underfunded…….”
____________________________________

Bill Morneua. Quelle surprise.

The same self-serving hypocrite who, as previously head of Morneau Shepell in the private sector, lobbied feverishly to allow pension administrators to convert sacred Defined Benefit pension into much inferior ‘Targeted’ Pensions.

The same self-serving hypocrite who, after becoming Finance Minister, TABLED bill C-27 TO ALLOW pension administrators to convert sacred Defined Benefit pension into much inferior ‘Targeted’ Pensions.

The same self-serving hypocrite, who used a ‘loop-hole’ himself to avoid placing his $21 million shares of Morneau Shepell into a blind trust.

The same self-serving hypocrite who’s shares profited $2 million upon introduction of his own bill C-27.

Yeah, that Bill Morneau.

#31 For those about to flop... on 11.12.17 at 5:08 pm

Pink Pumpkins being carved in Vancouver.

This one is in the same exact street that I showed a Pink Snow case in yesterday ,but these guys although they want more money have a much newer product to hock.

Purchased for 2.41 in late 2015 ,they have a little bit of wiggle room but this price could prove too rich for this neighborhood.

Only waited roughly 6 weeks to drop the price to try and freshen it up to try and make a sale before a bunch of listings are removed for the holiday season or become stale as Gregor Robertson’s hairstyle…

M43BC

2831 Venables st. Vancouver

Sept 26: 2.88

Nov 9: 2.69

Change : 190,000 7%

https://www.zolo.ca/vancouver-real-estate/2831-venables-street

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

#32 Shawn on 11.12.17 at 5:16 pm

What are the chances that the TFSA limit gets back to $10K?

#33 Randy on 11.12.17 at 5:20 pm

Glad the Government is using your CPP contributions to invest in infrastructure like bridges. This means that many of you will actually have a place to live under when you become homeless or jobless or when you retire.

Meanwhile the enhanced CPP deductions will help the Government pay for the rich gold-plated defined benefit pensions for Government Workers and Bureaucrats.

Get rid of your shades, the future ain’t that bright for you in Canada.

#34 Loonie Doctor on 11.12.17 at 5:22 pm

I remember my dad sitting me down in the early nineties and telling me that I could hope pensions pan out, but that the math and demographics didn’t add up. So, I had better save extra myself to be prepared.

He acted on his own advice by spending less and living happily but simply. We didn’t have as much stuff as many of our friends who spent whatever came in, but he was able to retire early with barely touching his union pension money. They had to work until their defined pension age kicked in and then live off of it. Fortunately their pensions have been their for them.

I feel terrible for the Sears pensioners, Stelco, and others who thought the money coming off their pay cheques was going to secure their retirements. However, I think that people should see this and the government fiscal behaviour in general (doesn’t matter which party) and remember that ultimately companies and governments likely have different competing priorities and that the only person who really cares about your retirement security is you.

Looking at the info in this post both shows what has happened to date and is concerning for the future with the demographics and deficits staring us even closer in the face now than back then. It is hard for some to prioritize spending less now to invest more for the future, but necessary, and you’ll never get that lost investment opportunity back later. I used get annoyed at my dad because I thought I was missing out on some of the stuff my friends got, but now I am eternally grateful. We never really missed out on the important things and we got more out of his example and advice than anything he could have bought us. For those who weren’t lucky enough to have that fatherly advice, you have Garth. He is admittedly cooler [obligatory suck up at the end rather than the customary opening statement].

#35 MSM-Free Zone on 11.12.17 at 5:29 pm

“….Lawyers are trying to get pensioners first-in-line when all assets are liquidated, but may not succeed……”
_____________________________

From the Nortel experience, lawyers appear to be more cold-blooded sharks than warm-blooded dolphins.

From Forbes Magazine:

“…The only clear winners so far in this multinational saga are lawyers and accountants, who have consumed nearly $2 billion in fees so far. British law firm Herbert Smith Freehills appears to be the biggest winner, billing for some $400 million to advise Ernst & Young on the administration of Nortel’s European bankruptcy estate. Ernst & Young comes in second at around $335 million……”

#36 Pete from St. Cesaire on 11.12.17 at 5:35 pm

If you can afford it, why not keep the kids from having to pay the banks interest?
——————————————————————-
If you can afford it you must have substantial savings and should be getting an investment return of at least 5%-7%. So it’s better for all involved if the kids get a mortgage at less than half that.

==================================
Ace Goodheart “Any wise investor would be looking to off shore their retirement money. Find a place with a stable, honest government, and put your investments there. Unfortunately, Canada is not that place anymore.”
——————————————
That’s what I’ve been telling people. Move your after-tax money out to places like Liechtenstein or Switzerland. Buy yourself a foreign citizenship in a place such as Dominica where you can buy it for around $100000. Then when the Canadians come for everyone’s savings you simply dump any Canadian holdings that you have and leave.

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

How long until the TFSA gets whacked by the government like the income trust robbery train that ran through everyone’s portfolio years ago?
Never happen – Garth
—————————————————————-
“NEVER”, there is that word again. I wouldn’t believe it even if I got a special, irrevocable parliamentary order-in-council attesting to it being true.

#37 Lee on 11.12.17 at 5:42 pm

Saw story recently where municipal employees in a small California town had to take a 60% cut in their pension payments. It was only four employees because it was a small city but hurts nonetheless. I believe California municipal pensions underfunded by 1.5 Trillion.

#38 Hogtown Indebted on 11.12.17 at 5:47 pm

And behind all of this, another great reason to hold politicians boots to the fire, especially Conservatives.

In 1998, OMERS, Ontario’s big municipal pension plan, was one of many plans slapped around by Mike Harris and the idiot Conservatives, because it had invested successfully and had a $6 billion surplus (Imagine that, readers – a balanced portfolio doing well, a Garth has always argued for)

Rather than growing and then balancing things out in the lean years (remember 2001-2002 and 2008 were on the way), Harris (the typical Conservative loser, just like Hudak and Scheer, never had a real job except as a part time ski instructor but now sits fatly on many corporate boards in his dotage years) played politics, called public sector pensions like OMERS too rich, and required that the plan stop taking contributions. For 5 years!!

By the time 2003 came around, OMERS had a big gap, and adjusted slowly but then was sideswiped by the 2008 crisis.

Today, this generally very well managed plan is struggling again to break even and be able to fund the coming retirement tidal wave. It is in better shape than some others. But there is much more risk than there should have been.

So….when we hear in the years ahead about the problems of underfunded public sector pension plans, remember who has caused most of this:

Conservative politicians who are economic morons.

If you care about our financial future, NEVER, EVER VOTE CONSERVATIVE AGAIN.

CONSERVATIVES ARE FINANCIAL COWARDS AND IDIOTS.

We need leaders willing to make tough choices, even if it seems too unpopular with readers of right wing tabloids.

Conservative idiocy is the greatest threat to the retirement stability of Canadians.

#39 Nonplused on 11.12.17 at 5:49 pm

Stocking up on bags for my old Kenmore vacuum doesn’t look so stupid now, does it dear?

Anyway I’m not sure Amazon is solely to blame for the demise of Sears. In theory they should have been able to transmorgify their old catalog business into an on-line powerhouse long before Amazon because they already had the distribution network. They dropped the ball IMHO.

#40 Tony on 11.12.17 at 5:49 pm

My grandfather owned a couple of theaters I worked for Local 173 I.A.T.S.E. as a projectionist until I was 35. Didn’t work many years but got two pensions out of them. One I worked all of 18 months a paper pension that was dumped into a 50 year strip bond back in September of 1982. That translates to about $24 grand for life at age 70 in 2028 if Manulife doesn’t go bankrupt first. A guy named Max Applebaum had the bright idea at the time.

#41 Keith on 11.12.17 at 5:50 pm

Garth, if my memory serves, a few blog posts ago you said that 7% of Canadians had maxed out their TFSA contributions. So a limit of 10k per year is going to be relevant to less than 5% of the population. Higher limits will serve the few. The pension problem is with the many.

We should have a government plan funded by 30% of wages, half from the employer and half from the employee, ticking over at 7%+ per annum with tiny expenses the private sector can’t match, and private and sophisticated investor opportunities that ordinary people don’t qualify for, and a little shareholder activism on behalf of the Canadian working people.

A quality government plan would serve Canadians perfectly well, the private sector investment option is there for those who want more. Sadly the time to start this was decades ago, and we will have increasing numbers of poor and low income seniors. Living longer than ever. With expensive health care costs. It’s a political leadership failure, and a demographic nightmare. Be nice to your kids.

Sure. But we don’t have one, and never will. So use what you were gifted. — Garth

#42 For those about to flop... on 11.12.17 at 5:58 pm

Kurt at 4:03 pm
“More tax & more government is not the solution. – Garth”

Weak, flippant, and unhelpful, and still caters to your target demographic. What trade offs should we focus on? Man up buddy, which services that benefit your target demographic should we cut? Take your time. Think about it. You’re a smart guy, I know you can do this. Take your giving back to Canada to the next level, and help make better Canadians.

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

Feel free to disagree with the guy but don’t bother lecturing him about giving back.

Save that one for someone that deserves it.

If Garth Turner ever ends up in a court of law ,with a public mischief charge after being caught wiping his shoe on some old lady’s front lawn after stepping in some of Bandits dog shit ,I will personally fly to Toronto and testify that he is of sound character,might of had a lapse in judgment but definitely had made this immigrant a better Canadian…

M43BC

#43 not 1st on 11.12.17 at 5:59 pm

Cmon Garth, the govt will have their dirty little fingers in those TFSA if they start hitting those kinds of returns. They have fingered every other program, whats to stop them when they need revenue in 20 yrs.

Never happen. RRSPs and TFSAs will never be taxed more than at current. — Garth

#44 crowdedelevatorfartz on 11.12.17 at 6:01 pm

@#4 Gurdeep
“Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit….”

*******
Well done Gurdeep.
Possibly one of the most idiotic statements in a long long time.

Please explain the TFSA cut to us lesser mortals since trudeau hasn’t………

#45 crowdedelevatorfartz on 11.12.17 at 6:07 pm

@#37 Lee
“I believe California municipal pensions underfunded by 1.5 Trillion….”

+++++

I just read that the US Post Service Pension is underfunded by $34 Billion.

The govt workers here in Canada can deny the underfunding all they want but time is running out and unpensioned private sector voters wont be quick to elect ANY politician that tries to rob “Peter” (them) to pay “Paul” ( govt employee pensions).
80% of DB pensions underfunded………..
Coming to a municipal, Provincal, Federal employee

#46 Stone on 11.12.17 at 6:07 pm

#23 A Yank in BC on 11.12.17 at 4:23 pm
Hypothetical question. What if everyone saved properly (say 15% of income) for their retirement? What effect would that have on consumer spending, on which the economy is supposedly so dependent? I have a feeling it would certainly crater home prices.. really quickly.

——

It’s only that. Hypothetical and will never be anything but. 95% of the population doesn’t have the discipline or the mental fortitude to save 15% of their income, let alone 1%. They’re unable to delay their gratification as they can’t think beyond their next meal. Housing will still eventually crap out further regardless though. It’s only a matter of time now.

An eventual increase in unemployment will do the trick though like a swift hard kick to the nads. When the MSM start reporting regular layoffs, watch how consumer spending takes a dive. Only personal opinion but I have a feeling that it may begin around 2019-2020 when the cost of doing business rises (rising interest rates, rising wages, etc).

#47 crossbordershopper on 11.12.17 at 6:08 pm

with all the hundreds and hundreds of seniors whom i do taxes for. Many of them live. on cpp and oas. and a little investment income, like gic 1% on hundred or two hundred they squirled away. many have litterly nothing, like 5 to 25 grand, enough for the funeral.
i think people who are basically poor ,and live from like 65 to 85 is the kind of dead time for a lot of people.
i ask widows, why do you have a car? just use uber when you need to go somewhere or a son or a guy friday to drive you around once a week.
why do widows sit on a 4 bedroom home when they live with a cat. well, the kids will get it.
i think those 20 years many seniors are just coasting, when honestly they can continue to invest and live nicely they have a lot of dead assets, no returns. and costing them money.
its poor decisions, most canadians dont know anything, that is the bigger problem.

#48 Vampire studies GMST on 11.12.17 at 6:09 pm

23 yank – Google “paradox of thrift”

#49 MSM-Free Zone on 11.12.17 at 6:13 pm

Myself, I belong to a (private sector) Defined Benefit pension and am not delusional enough to believe that my own CEO won’t pull a self-serving Nortel or a Stelco.

Currently, my own private DB pension is one of the more fortunate ones to be 124% overfunded. Federal law allows my company to take a “Pension Contribution Holiday” and shower my CEO with multi-million dollar executive bonuses, instead of putting that pension surplus away for a rainy day. Curiously, I and my colleagues are still required to make our own regular pension deductions from our paycheques.

Because I belong to a DB pension, however, by federal law I am severely restricted in my contributions to any RRSP. I still manage to max out whatever pitiful RRSP amounts I am allowed, which should hopefully provision me with an adequate amount of KD and Purina Dog Chow well into my 70’s should my DB pension suffer a CEO-induced failure.

As backup protection from CEO incompetence and illicit behaviour as well, I manage to top up my annual TFSA contributions, which happily, are not DB-Pension penalized (at least, not yet, given the current government’s hypocritical track record).

#50 Entrepreneur on 11.12.17 at 6:17 pm

Wonder why politicians want to keep us poor and dependent? Simple, to keep control of the mass, to keep them from forming a riot/revolution. A big fear for politicians but keep on pretending/ignoring the concerns, the problem will fester into one big one.

And I agree with #26 MSM-Free Zone on T2 who was intelligent enough to deceive us at election time and as for the “tarnished hypocrite no longer deserves capitalization” are my feeling exactly. Whenever I see the news with T2 in China I am starting to think “why don’t you just stay there, don’t come back.”

When I hear of all the deaths in B.C. with the opioids crisis (mostly males), when I hear most small businesses sell internationally, when I hear manufacturing is almost nil in Canada, when I hear we can get cheaper products from another country I just shake my head in disgust, like really.

We need a leader that thinks for the people within the borders.

#51 StandardDeviation on 11.12.17 at 6:26 pm

Read that this last week that nearly 80% of all jobs created in Albert this year are government so 42,000 x (defined benefit pension contributions of say $1.2Million or more per employee) means we are setting ourselves up for another $50 Billion in debt for whatever taxpayers are left. Seriously, this is good governance? and, is it reflected in the Federal sphere as well.

#52 rainclouds on 11.12.17 at 6:32 pm

I’m thinking “Gurdeep” is getting OT on a Sunday, trolling from the short pants division of the PMO……….

PM and his band of arrogant limousine Progressives will be ushered out by the Lib long knives after taking it on the chin in 2019.

Regarding looking after yourself cause nobody else cares….bang on!

#53 Adam on 11.12.17 at 6:33 pm

A very large part of Trudeau’s platform was to nix the $10k TFSA limit. Trudeau didn’t nix it, the voters did. They nixed it not because it was or wasn’t a good idea, it was because it wasn’t relevant to them because very few people use the current $5500, a $10k limit isn’t relevant to them.

Then the voters are fools. The RRSP rewards the rich with higher contributions for higher incomes. The TFSA is the most democratic and egalitarian shelter we have. And which did he decide to gut? There is no defense. — Garth

#54 dr. talc on 11.12.17 at 6:37 pm

‘You’re on your own.’ should be chiseled in stone.
What really surprised me is the lack of outrage over Morneau’s changes to principal residence reporting on the tax returns- not that he did it, but specifically that it was retro active, so that people who had sold already were the victims of an ex post facto law:

https://en.wikipedia.org/wiki/Ex_post_facto_law

which is immoral, and precedents are few, the prosecutors at Nuremberg comes to mind

#55 Adam on 11.12.17 at 6:39 pm

“Then the voters are fools. The RRSP rewards the rich with higher contributions for higher incomes. The TFSA is the most democratic and egalitarian shelter we have. And which did he decide to gut? There is no defense. — Garth”

Sure, I can agree with that – but what does it really matter? In a democracy the voters call the shots….you don’t like democracy, I can think of a couple of other places you could move to, but won’t.

No wonder you didn’t last as an MP….you don’t get it that it doesn’t matter that you’re obviously smarter than everyone else.

Was that necessary? You are my guest here. — Garth

#56 Damifino on 11.12.17 at 6:53 pm

The message of this depressing post is simple. You’re on your own.
———————————–

I’ve known it since I was a boy. My dad told me.

#57 Millenial on 11.12.17 at 6:54 pm

Upcoming pensions crisis you say Garth?

You’re starting to sound like the Zero Guy.

And of course you’re both correct.

#58 acdel on 11.12.17 at 7:01 pm

It is incredibly sad and disgusting that we put up with this. It should be law that a pension fund cannot be under funded, dipped into by corps or govs, and placed where no one but pensioners that contributed their whole working lives should have access to. It’s mind-boggling!!

TFSA is the safest bet right now, stocks markets although one can do ok bur it is still a huge gamble nowadays pending on age. How many seniors lost it all in the 2008/2009 collapse, many, and many ended their lives because of it.

Kurt Edwards- what do you seriously suggest; more taxes??, if so, to what end?? What are your thoughts on all these off shore accounts that our great Canadians take advantage of therefore not paying there fair taxes? What are you doing about it if it disgust you as much as the rest of us? Wish to pay more taxes; hell ya, you can pay my contribution and heck why not many of our contributions and for what???? Projects that are usually 100 to 200 hundred percent over budget; get real!!!

This should be good!! :)

“How many seniors lost it all in the 2008/2009 collapse?” Only those who sold in a panic when assets fell in value. Consistently, we are our own worst enemies. — Garth

#59 Adam on 11.12.17 at 7:04 pm

Ok fine, I took the (arguably) disrespectful stuff out:

Regarding the TFSA – let’s not pretend that the $10k limit was with the TFSA since inception. It wasn’t – the legislation was passed as a last ditch effort by the Conservatives right before the last election to try and shore up support from their base. If Harper wasn’t in danger of losing the last election, it is my firm belief that the TFSA limit would never have been increased to $10k for a single year. The late Jim Flaherty never thought it was a good idea and told Harper several times in his capacity as Finance Minister that he was not on board with it…..this is the full story of where the $10k TFSA limit came from, and why it should never have been implemented in the first place.

#60 Cecil Henry on 11.12.17 at 7:05 pm

It is imperative that people push for the government, whatever government that is, to raise the TFSA back to $10000/year immediately and then raise it to RRSP levels and beyond.

My income should NOT be taxed twice.

IN the UK their equivalent fund allows yearly contributions of $50,000 plus. There is no better poverty reducing tool then enabling people to grow their own wealth.

#61 Long-Time Lurker on 11.12.17 at 7:06 pm

Something’s happening in the US. Stocks and bonds are going down at the same time. It could be the start of something big.

The Saudi palace shake-up could mean oil prices continue to climb.

Hey, Ace. More Tesla troubles update on Zero Hedge. Musk has three bottlenecks in the production line, is burning through cash and the electric vehicle tax credit is gone. I’m sure Musk can get the technological problems solved. The concern is can he do so before he runs out of money or the investors pull the rug out from under him.

The Fremont factory doesn’t have to produce 5,000 units. It’s like the laboratory. Once Tesla has the production system down, it can replicate the model elsewhere and can produce the output. Technologically, it’s all solvable. It’s the business aspect that’s the challenge.

Any innovator or entrepreneur is going to experience problems to solve. If Musk fails it’s not from a lack of trying. Were the Wright brothers con men? Don’t like it, Lost? Why don’t you do better then?

#62 Randy Randerson on 11.12.17 at 7:10 pm

#53 Adam on 11.12.17 at 6:33 pm

Hey Adam, I just got a 5 figures tax refund this year courtesy of RRSP. Part of that goes into my TFSA. Did you?

No? Then sux to be you .

#63 Long-Time Lurker on 11.12.17 at 7:10 pm

Good article, Garth.

I notice some commentators are arguing for more taxes and government against Garth’s argument for less. Here I include the story of Hong Kong’s success as a low-tax and small government example:

https://www.sovereignman.com/trends/this-entire-system-is-rigged-against-your-prosperity-18760/

This entire system is rigged against your prosperity

Simon Black
March 1, 2016
Hong Kong

On January 26, 1841, two years into the First Opium War between China’s Qing Dynasty and the British Empire, Commodore Sir Gordon Bremer hoisted the British flag above Possession Point in Hong Kong.

At the time the island’s population numbered less than 10,000. Most were illiterate fishermen.

Hong Kong was also devoid of any meaningful natural resources except for well-placed geography.

So when the war ended in 1842 and British diplomats formally annexed Hong Kong into their empire, they turned it into a free port almost immediately.

This means that no taxes were charged on goods traded in Hong Kong—an anomaly back then.

Governments routinely squeezed trading posts for tax revenue, taking a cut of all goods shipped through the port.

Governments still do this today, charging custom duties and other taxes on imported goods crossing their borders.

As a free port, Hong Kong immediately attracted entrepreneurs and speculators from all over the world to set up their operations.

People were attracted to the low tax environment, and the fact that the imperial government bureaucrats were over 5,000 miles away.

Trade quickly flourished. And as commercial activity grew, the island prospered and rapidly became more developed.

People migrated to Hong Kong based on the premise that, just like in America, they could work hard and make a life for themselves.

Within 20 years the population had increased over ten fold. And it kept growing.

Hong Kong became a boomtown, earning a reputation as a swashbuckling paradise for risk-takers.

This freewheeling, Wild East attitude paid off.

Today Hong Kong is one of the wealthiest places in the world, with a GDP per capita and standard of living that outpaces most of the West.

It’s modern and advanced; the city skyline is beautiful– there are 50% more skyscrapers here than in New York City.

Taxes in Hong Kong are still among the lowest in the world.

Yet the government is awash with cash and regularly sends surpluses back to its citizens.

They maintain almost unparalleled financial reserves.

And instead of having to pay interest on debt, Hong Kong generates substantial income from interest and investment gains on its huge pool of savings.

Hong Kong is far from perfect. But this illiterate fishing village did pretty well for itself. And it’s not hard to figure out why: freedom.

#64 Randy Randerson on 11.12.17 at 7:11 pm

#55 Adam on 11.12.17 at 6:39 pm

You don’t like this blog? Then I can think of other places you can move to, like http://www.ilovetrudeauslies.com

#65 acdel on 11.12.17 at 7:12 pm

“How many seniors lost it all in the 2008/2009 collapse?” Only those who sold in a panic when assets fell in value. Consistently, we are our own worst enemies. — Garth

True but it is human nature; unfortunately people in their 70’s and 80’s have a different view; fear, anger, and depression unfortunately takes its toll.

#66 Adam on 11.12.17 at 7:14 pm

#58 acdel on 11.12.17 at 7:01 pm

TFSA is the safest bet right now, stocks markets although one can do ok bur it is still a huge gamble nowadays pending on age…

——

If you have a TFSA in cash or GICs, you’re doing it very very wrong. As Garth consistently points out, it’s a huge gamble NOT TO invest in equities and instead sit in cash and especially GICs (at least with cash you have the flexibility to do something with it whenever you want – a GIC, nowadays, is probably the dumbest investment you could ever buy….well, except maybe bitcoin).

#67 Adam on 11.12.17 at 7:15 pm

#60 Cecil Henry on 11.12.17 at 7:05 pm

My income should NOT be taxed twice.

——-

Please explain, with examples, how your income is being taxed twice.

#68 X on 11.12.17 at 7:16 pm

More tax & more government is not the solution. – Garth

Might want to tell that to all the Millennials that will vote NDP at the next election as T2 is old news to them.

53 Adam on 11.12.17 at 6:33 pm
A very large part of Trudeau’s platform was to nix the $10k TFSA limit. Trudeau didn’t nix it, the voters did. They nixed it not because it was or wasn’t a good idea, it was because it wasn’t relevant to them because very few people use the current $5500, a $10k limit isn’t relevant to them.

Remarkably short sighted. Wouldn’t you rather have the TFSA room for if/when you come into money. It would help many retirees/elderly (those who need income the most) shelter money from taxation.

Just because you don’t have the funds now to place in it, doesn’t mean it wouldn’t be great to have.

#69 Linda on 11.12.17 at 7:27 pm

‘More tax & more government is not the solution’. That depends. The sad truth is that most people (& yes, I do include my own self in this statement) will not voluntarily set aside funds for the future the way they’d have to in order to live ‘la dolce vida’ upon retirement. Unless setting aside those funds is not a choice but a requirement, which is why CPP is one of the benefits of yes, more government/taxes. I & my fellow beavers do not get a (legal) choice to not contribute to CPP (unless we are age 65). The drawback is not that the deductions are mandatory, it is that the amount taken is too small to ensure a well upholstered DB retirement. Maximum CPP was $13,370 at age 65 (before tax) last time I looked & not too many Canadians qualify for the maximum under the current rules, as most simply do not work for 39 plus years & make the maximum CPP contribution for every one of those 39+ years & defer taking it until age 65 to boot.

Regardless of what most will actually receive, the grim fact is that for far too many Canadians, CPP is the only (DB) pension plan they have. OAS & GIS are not pension plans, they are funded out of government revenues. Even worse, most Canadians can’t (or won’t) contribute anything towards their RRSP or TFSA limits each year. If & when they get some spare cash, the most likely use of it is to either pay down debt or – & this is the most likely choice – use it for some ‘treat’ they’ve wanted because ‘life is too short & I deserve it’. Fair enough, as long as the people doing this do not then turn around & complain how ‘it isn’t fair’ when those who did make provision for their future are enjoying their retirement. Even better, state that ‘those who have’ had to have ‘stolen’ something & not worked for it.

The above also holds true for those fortunate enough to have a work related pension plan. Most of these plans do not have an ‘opt out’ clause; they are a condition of employment & deductions are not a choice. Which is why it is so disgraceful when pension plan members benefits are gutted upon the collapse of a company or the stroke of a pen via a political vote buying exercise. Our government should have laws in place that protect pensioners pension plans from such eventualities. The fact that we have little or no such legislation in place despite the many grim examples of pensioners losing their benefits is a failure of government.

Is it the responsibility of government to save you from your own poor financial choices? How is that fair to those who do make good decisions? — Garth

#70 Smoking Man on 11.12.17 at 7:41 pm

Pretty much everyone is.poched ‘re pentions. Most boomers having nothing invested? all there loot is in their house. Just imagen what will happen to the real estate market when they all try and bail at the same time.

Wait that’s happening now. That’s why SFH not selling.

Learn to trade forex. Write a book, Invent encryption software and get others to sell it. Give away free invoicing software were you can up sell services later. Make a movie about your book. Take on a few consulting gigs for casino funding.

Never stop trying you’ll make it.

#71 -=jwk=- on 11.12.17 at 7:45 pm

Seems the politicians would rather have us poor and dependent. Wonder why?

Because over here in the real world, people aren’t saving $10,000 a year. Corporate (conservative) overlords have driven real wages down so much all they have left is CPP.

More tax & more government is not the solution

It’s not a tax, it’s a pension plan. There is a difference.

In your lifetime, public pensions will never provide financial security. Stop moaning and prepare. — Garth

#72 conan on 11.12.17 at 7:52 pm

The TFSA is the most democratic and egalitarian shelter we have. And which did he decide to gut? There is no defense. — Garth

There is a defense and that is: the need to keep the RSP 100 % relevant. Doing so will help mitigate the pension crisis. There is a solid connection between RSP limits and contribution room to DB plans.

A horrendous percentage of DB plans are premium starved and this looks like a long term solution to a complicated problem.

Rest of the World seems broken at the moment. Anyone remember it worse then it is now?

https://www.youtube.com/watch?v=WlaOdtJEg-0

#73 crowdedelevatorfartz on 11.12.17 at 7:55 pm

@#61 Long Time
“More Tesla troubles update on Zero Hedge. Musk has three bottlenecks in the production line, is burning through cash and the electric vehicle tax credit is gone. I’m sure Musk can get the technological problems solved. The concern is can he do so before he runs out of money or the investors pull the rug out from under him.”
******

Elon Musk is beginning to realize he cant “will” something just because his ego wants it.
Starting form nothing to produce 5000, 10,000, 20,000 cars per year…..an impossiblity in this day and age even with robots.
Detroit has been at it for more than 100 years and when shook their heads at his predictions….ya gotta cut them some slack since they have more experience building cars than him.
Mass production,Unions, publicly traded shares, Senate investigative committees, …….

Musk better hope that trip to Mars happens sooner rather than later.

#74 Protea on 11.12.17 at 7:57 pm

#4 Gurdeep
My patience is running out !!! for christs sake …where is the evidence !!!.
Garth if bloggers can’t back up their absurd comments ban them from blogging !
Sat Sri Akal Gurdeep in Punjabi means translated as “Truth is the ultimate God” give us the goods ??

#75 Lisa on 11.12.17 at 7:58 pm

Garth and Ryan L: Great posts! Ryan, that was my favourite post in the last two weeks other than Garth’s last post about the Millennials. Trump may not be a gentleman but he IS doing what he thinks he should in spite of the opposition from the PC thugs.

#33 Randy
I laughed when I read the first papargraph of your post! I will probably be one of those bridge trolls when I hit 70. An Early Childhood Education diploma is the biggest waste of money out there. That was a poor choice on my part, but my circumstances were different then.
If any of you have kids wanting to do that stop them right now! They’ll be living at home forever and with the cost of living now they might as well just work at McDonalds. Ironically McDonalds would offer better career options and more room to move in the company.

Garth, if I might, I was just thinking about Retired Boomer- WI. He just popped in my mind tonight. It’s Remembrance Day weekend so to all the Veterans out there, thank you for your sacrifice. And I’d like to remember Retired Boomer-WI. He was so kind and wise! Rest in Peace!

#76 common sense on 11.12.17 at 8:01 pm

#29 Garth

“Never happen”

Respectfully unless your clairvoyant your statement is just an educated “guess”.

Many people said Trump would never happen or Brexit.
That turned out well didn’t it?

When the S#$5 hits the fan the “odds” of a clawed back CPP OAS are high and an wealth test even higher…

And oh yeah, printing your way out a mess has really worked to date hasn’t it?

Depend on NO ONE.

#77 millmech on 11.12.17 at 8:02 pm

#41 Keith
Your wrong because Canadians are so busy funding their other TFSA called a house that is why they do not have any money left over.

#78 acdel on 11.12.17 at 8:11 pm

#66 Adam

I do not disagree with you or Garth’s points; hell, I am an investor myself.

My biggest pet peeve is what is happening to all those people who worked a lifetime, made a contribution to their pension plans only to have it taken away from them.

That was my point with what happened in 2008/2009; judge the people all you want that trusted the system; it took how many trillions of tax payers dollars to bail out fraudsters that did this to us??? Only a few went to jail over it and the world has never been the same since.

This whole stock market rising to new heights is a complete illusion; the same thing is going to happen again, the shorts will be happy, the rest of us poor suckers not so much. This time there will be no money to bail them out, so as Garth said, prepare!!

#79 Happy Housing Crash Everyone! on 11.12.17 at 8:12 pm

Renner when I said this house https://www.realtor.ca/Residential/Single-Family/18661715/132-LAURELCREST-AVE-Toronto-Ontario-M3H2B3-Clanton-Park

Sold for $2,118,000 in five days in March? Well it’s remained UNSOLD since july/ August with price drop after price drop. Hey you stupid dirty SHYSTERS on here said it would sell easily for 1,950,000 and it didn’t. Now they trying to sell it DESPERATELY for $1,725,000 million. You dirty SHYSTERS just ruined another life.

Happy Housing Crash Everyone Everyone!:-)
The housing market is CRASHING!!!

#80 young & foolish on 11.12.17 at 8:12 pm

My grandad says income inequality will get a lot worse before significant measures are enacted. I guess he should know …. he’s been there. If he’s right, I can imagine many Canadians will be angry and claim they were betrayed.

#81 tax on tax on 11.12.17 at 8:15 pm

#67 Adam on 11.12.17 at 7:15 pm
#60 Cecil Henry on 11.12.17 at 7:05 pm

My income should NOT be taxed twice.

——-

Please explain, with examples, how your income is being taxed twice.
—–

1- payroll deduction
2- consumption- gst, pst, hst, carbon tax, user fees,
3- inflation, is built into the monetary system, no escape, is the ‘hidden tax’; for example market value assessment- you bought a house for 200k today it’s worth 500k- pay up
4-hidden tax: eco fees, this is a tax
5- sin tax and gas taxes, over and above hst

#82 NoName on 11.12.17 at 8:26 pm

#61 Long-Time Lurker on 11.12.17 at 7:06 pm

Fermont is not pilot plant, only “process” companies can scale down and test that build bigger and ramp up production, no automotive company nowadays cant afford to build pilot work out bugs and than go full scale production.

Tesla 3, uses 3 diferet materials for body alone that require 3 different technologies (welding, gluing and riviting) to work side by side and that’s harder than you think, to integrate all together and to be fault tolerant.

late 90s jaguar xj had all aluminum body that i know fist, i just google it and rest of the cars that use all aluminum body/frame are very expencive cars 3-4x more expensive than T3, all cars are “low” volume cars.

good luck to tesla 3, it will be long time before they start pumpin 500k cars from fermonts 5mil sq ft. facility.

https://www.autobytel.com/car-buying-guides/features/10-best-cars-with-aluminum-frames-131503/

#83 Eyestrain on 11.12.17 at 8:26 pm

My advice is this: Invest $5.50 in a copy of the weekend G&M. The virtual riches to rags stories in the Bitcoin saga will leave you in stitches, but hopefully wiser. The article on Playground Inequity is gag worthy, but will show how close we are to the tipping point. Best of all is the obits. See how little the you really need to get by. A deck of cards, a copy of Watson’s, and a worthy cause and you’re pretty much good to go. Pension shmension, live it up while you can.

And stop putting rocks in the snowballs. Somebody could lose an eye.

#84 Thankfully on 11.12.17 at 8:33 pm

Stone gave us a ytd update on his portfolio , whew

Thankfully , he doesn’t have kids

#85 NoName on 11.12.17 at 8:34 pm

addendum
to make 500k T3, is to make one car every 46 sec. based on mon-fri production.

#86 Just ruined another life ? on 11.12.17 at 8:41 pm

Whaaaaaat ?

The buyer of the house SIGNED on the dotted line ? It is he/she whom is responsible not the agent

Geez

#87 OttawaMike on 11.12.17 at 8:54 pm

No worries.

CPP returned .7% on their investments last quarter–

http://www.pionline.com/article/20171110/ONLINE/171119988/canada-pension-plan-posts-07-return-in-third-quarter

#88 FLHTK on 11.12.17 at 9:02 pm

I’m doing just that….$100 a week in TFSA and i’m following couch potato and their 3 ETF recommendations…hardly returning 7%…someone help!

#89 MSM-Free Zone on 11.12.17 at 9:03 pm

#55 Adam on 11.12.17 at 6:39 pm
“…..No wonder you didn’t last as an MP….you don’t get it that it doesn’t matter that you’re obviously smarter than everyone else……..”
_________________________________

Actually, the man didn’t last as a Canadian MP because he demonstrated integrity at the time, a totally foreign concept to Baird, Clement, Mackey, Finley, Kenney, Rait, Poilievre, Fantino, Bernier, and the other members of Club Harpocrite.

#90 For those about to flop... on 11.12.17 at 9:04 pm

#75 Lisa on 11.12.17 at 7:58 pm

Garth, if I might, I was just thinking about Retired Boomer- WI. He just popped in my mind tonight. It’s Remembrance Day weekend so to all the Veterans out there, thank you for your sacrifice. And I’d like to remember Retired Boomer-WI. He was so kind and wise! Rest in Peace!

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

Still can’t fully explain the connection I felt with that man.

We joked that he was my blog dad and I his son.

I think about him most days, unanswered questions and all that.

Today was no different, was thumbing through the latest Bleachers album and this one made me think of Boom.

Everybody Lost Somebody…

M43BC
M64WI

https://m.youtube.com/watch?v=khqRs0g3wvE

#91 mike from mtl on 11.12.17 at 9:16 pm

Man anyone who is in the ‘middle’ brackets investing in RRSP account funds is either terrible at math or forced to. Investing in RE really is a better alternative no doubt.

Double taxed and usually stuck with crappy <1% mutuals has a future under a bridge or working until death waiting for them.

Even the 10k TFSA is laughably low. Of course .gov axed it.

#92 Smoking Man on 11.12.17 at 9:20 pm

One thing I know for sure the truth can be found in Rachel Nevada. Your programming , obey and get good grades will only lead to a lifetime of slavery and mental disorder.

Risist, find something to sell and sell a lot. Only way to find the garden of Eden and a voice that don’t care about consiquenses When you get there you have made it and you know it.

All the other bull shit in between. Meaningless.

ttps://youtu.be/2bQZ6l_cq5Y

#93 FredfromKitchener on 11.12.17 at 9:42 pm

http://business.financialpost.com/opinion/while-politicians-play-politics-with-sears-pensioners-the-supreme-court-appears-to-be-on-their-side

Hopefully the good folks at Sears will make out better than every one thinks.

Meanwhile #33 Randy, you are misinformed. CPP is stable and is not controlled by the government. Look it up.

#94 Brydle604 on 11.12.17 at 9:44 pm

#82 No Name
You forgot about the Ford F 150, pickup truck, Aluminum Body and high volume.
Expect GM to follow soon.

#95 Smoking Man on 11.12.17 at 9:50 pm

November when all the suck ups fitting crowd grow a beard for a noble case.

Me I’m suffering in acute arthritis.
Going to the south west.

#96 John on 11.12.17 at 10:00 pm

“November when all the suck ups fitting crowd grow a beard for a noble case.

Me I’m suffering in acute arthritis.
Going to the south west.”

Right… been reading this blog for 4 years and you keep saying you are leaving the country but here you are still..

I imagine because you write so much BS you forgot you were in rehab this month too…???

What a waste of air…

#97 Smoking Man on 11.12.17 at 10:05 pm

November rain.

https://youtu.be/8SbUC-UaAxE

#98 Deplorable Space Dust on 11.12.17 at 10:15 pm

#95 Smoking Man on 11.12.17 at 9:50 pm

November when all the suck ups fitting crowd grow a beard for a noble case.

Me I’m suffering in acute arthritis.
Going to the south west.
..
Would you hurry about it dude.. you’ve been saying that for years

#99 Cecil Henry on 11.12.17 at 10:18 pm

#60

For you to ask that question is willful blindness. There’s so much of it in this country. Everybody wants to make sure the other guy is controlled by the state.

I am taxed twice and more. I earn the money through income, its taxed.

If I now buy something beyond food and basic commodities, its taxed to do that. If I dare enjoy it in some way that could be perceived as more than its initial worth— it will be taxed too.

Now if I want to invest that money (my capital, my labour, my blood sweat) in a business, in financial assets, in anything and delay consumption, gratification and take risk, it will be taxed further IF it increases in value. (which is the only reason to invest in anything)

During the investment period the government will steal it through inflation as well, AND tax that increase too even though the real value of my asset has not changed.

That is theft, and it is immoral and criminal. The only tax-free investments left: hookers and homemade beer.

You can’t tax fun, leisure or dissipation, but you CAN tax effort, ambition, and productivity– those are visible and tangible.

A man is not a slave and my labour is my own. A serf paid 10% in taxes– and Canadians pay 50%.

The top 20% pay 80% plus of the taxes. NO that is not fair, that is theft too, theft with the gun of the state.

And a lot of ‘caring people’ like it that way, when no one is looking. Okay….. ethics are done then. Done.

#100 Ace Goodheart on 11.12.17 at 10:20 pm

RE: #73 crowdedelevatorfartz on 11.12.17 at 7:55 pm

Tesla: one factory, three production lines. Impossible production goals. And even if they make these goals a reality, even then, the stock is still over valued.

Best auto stock to buy right now, if you’re in the market for auto stock, is Toyota. 3% dividend. 11 to 1 price to earnings. Billions in net profit. And top shelf build quality. Scandal free too (unlike VW for example).

Tesla is just a tech bubble about to burst.

#101 FOUR FINGERS WATSON on 11.12.17 at 10:29 pm

#92 Smoking Man on 11.12.17 at 9:20 pm
One thing I know for sure the truth can be found in Rachel Nevada. Your programming , obey and get good grades will only lead to a lifetime of slavery and mental disorder.

Risist, find something to sell and sell a lot. Only way to find the garden of Eden and a voice that don’t care about consiquenses When you get there you have made it and you know it.

All the other bull shit in between. Meaningless.

ttps://youtu.be/2bQZ6l_cq5Y
……………………………..

I completely agree about Rachel Nevada. Her sister Rhonda is a real looker too. Is the cover charge at Garden of Eden still ten bucks ?

#102 Lost..but not leased on 11.12.17 at 10:34 pm

Agenda 27-6
Agenda 7X3
Agenda 42/2

baby

#103 Manitoba Whale on 11.12.17 at 10:54 pm

#39 MSM
The same self-serving hypocrite…

Yeah, that Bill Morneau
———–

With his credibility totally burnt, why is he still around?
Why would T2 keep him in his inner circle?
I am not the brightest GenXer, I almost posted a comment once with my ‘Mail’ address in the ‘Name’ section of the comment section of this blog, but even I can see that Morneau has more baggage than a plane landing in the Cayman Islands.

Unbelievable.

Maybe Gurdeep can tell us.

#104 Lost..but not leased on 11.12.17 at 11:07 pm

Is Elon Musk running Bitcoin ?

……..or vice versa ?

#105 When Will They Raise Rates? on 11.12.17 at 11:18 pm

#103 Manitoba Whale on 11.12.17 at 10:54 pm

#39 MSM
The same self-serving hypocrite…

Yeah, that Bill Morneau
———–

With his credibility totally burnt, why is he still around?
Why would T2 keep him in his inner circle?
I am not the brightest GenXer, I almost posted a comment once with my ‘Mail’ address in the ‘Name’ section of the comment section of this blog, but even I can see that Morneau has more baggage than a plane landing in the Cayman Islands.

Unbelievable.

Maybe Gurdeep can tell us.

——-

He should be prosecuted for breaking the law. “Rule of law” and all that good stuff.

#106 Manitoba Whale on 11.12.17 at 11:23 pm

#63 Long-Time Lurker on 11.12.17 at 7:10 pm
Good article, Garth.

I notice some commentators are arguing for more taxes and government against Garth’s argument for less. Here I include the story of Hong Kong’s success as a low-tax and small government example:
——-

Thanks for commenting on a real life alternative approach. Things weren’t all groovy in Canada’s past, but that doesn’t mean big governments and big budgets and tax increases are the only available answer easier.

We have a cautionary tale today about prudently planning our financial future in these uncertain times.
Thank goodness our government is doing the same and putting budget surpluses towards the national debt in case interest rates rise.

Oops.

#107 Honky Donkey Blues on 11.12.17 at 11:32 pm

“Seems the politicians would rather have us poor and dependent. Wonder why?”

because under a Monarchy , the sole purpose of one’s life is preservation of the Monarchy. When one is no longer productive and becomes a burden, the now legal assisted-dying van will pay a visit , and you WILL sign the release …..

#108 Dr. on 11.12.17 at 11:36 pm

#4 Trudeau is extremely intelligent and you don’t understand his reasons for reducing the TFSA limit.
————————————————–
I’d have to agree with you. That is the only way to explain how a person who grew up in a broken family, whose mother battled mental illness, and who never worked more than few days in his life could convince majority of Canadians to vote for him (his party).

Of course, his good look, radiating personality and having the wax figure as the main opponent did help.

#109 Fortune500 on 11.12.17 at 11:37 pm

If you can’t beat em, join em. Get a government job of any kind (no one is touching those pensions). Buy a house on extreme leverage in a major city in Canada. Done.

This is the path I would recommend to young Canadians at this stage. Whatever you do, do NOT become an entrepreneur in Canada.

#110 Lost..but not leased on 11.12.17 at 11:45 pm

Further to my ceaseless efforts to submit the Rosetta Stone-esque summary that explains all:

“ALL WARS ARE BANKERS WARS”

I suggest parties GOOGLE the “Perestroika Deception”.

Communism never died, it simply morphed into a more palatable yet equally insidious attack on what freedoms we have left.

#111 Pete on 11.13.17 at 12:06 am

#108 Dr

I LOVE how Trudeau BLOODY the nose of that Conservative fool in the boxing match. Then he went on to bloody the nose of the stupid conservative party. The so called “drama teacher” schooled you conservative fools so badly. What does that say about the conservatives? LMFAO. You fools cry like little babies everyday. Fact is he won and made your party look like the baffoons we all know they have always been. watch the con get his ass kicked here http://nationalpost.com/news/canada/the-fight-how-justin-trudeau-outclassed-patrick-brazeau-five-years-ago-in-a-boxing-match-for-the-ages

#112 Lost..but not leased on 11.13.17 at 12:10 am

Re: Sears

I read that the CEO had directed dividends be paid, ( and of course the bigger pigs dipped their snouts in the trough)which depleted their cash reserves…you know the rest of the story.

#113 Linda on 11.13.17 at 12:28 am

‘Is it the responsibility of government to save you from your own poor financial choices? How is that fair to those who do make good decisions?’

Garth, in response to your comments, no, it is not the responsibility of government to save me (or anyone else) from our own poor financial decisions. However, it would be the smart thing to do. Because unless you can explain to me how it is ‘fair’ that those of us who do make good decisions must pay for those who don’t, the only solution that comes to mind is enforced savings. And we do pay. Taxpayer dollars fund OAS/GIS as well as health care. If I have assets & end up in long term care, I have to liquidate my assets to pay for my care – but the person who has no assets in the bed next to mine has their care paid for by taxpayer dollars.

Forcing everyone to pay more into CPP so they won’t need to be subsidized later in life may not be ‘fair’. But it is a practical solution to a problem that otherwise will continue to cost us more than we can afford.

#114 prairie person on 11.13.17 at 1:00 am

https://globalnews.ca/news/3857541/seattle-chinese-homebuyers-vancouver/

Two articles this weekend about how the tax in Vancouver is causing a rush of Asian buyers to Seattle. Big numbers. With the availability of more information in the US we might finally get some idea of how big the foreign buyers are in the market. I don’t care if it is more or less, just so we get reliable numbers.

#115 Vanreal on 11.13.17 at 1:25 am

What is the size of the average RRSP and the average TFSA. I can’t find the info on line anywhere.

#116 Bob Dog on 11.13.17 at 1:52 am

If the CEO takes 100 times the median salary in a corporation, they must suffer 100 times the loss of the average employee when they fail.

#117 morrey on 11.13.17 at 2:25 am

taxing the foreign capital is working for BC:
“Seattle hasn’t historically been known as a hotbed for foreign investment, but real estate experts say that home sales there have seen a dramatic shift upward since Vancouver brought in a foreign buyers tax.

“A lot of people who were looking in Vancouver are automatically looking further south now to Seattle,” said Matthew Gardner, chief economist with Windermere Real Estate in Seattle.”

#118 jane24 on 11.13.17 at 3:51 am

I must admit that I am a bit shocked that in this time of fast changing business models, Canada does not have a govt program to protect the Sears workers. Here in the UK every pension plan has to pay into a govt agency that steps in to cover 80 -90% of expected private pension if a member company goes belly-up. For ordinary workers to lose what they have worked their whole lives for is truly outrageous. pensioners MUST be first in the queue.

#119 under the radar on 11.13.17 at 5:48 am

People make choices that have consequences. From the sugar infested cancer causing breakfasts at the drive through, to the reckless quest for more stuff to buy at big box stores, to the foolish desire to compete with the idiot next door for the nicest lawn, the things we do matter. Obese, diabetic and broke. Change it while you can.

#120 Howard on 11.13.17 at 6:20 am

#7 Dean McGibble on 11.12.17 at 3:29 pm

Garth,
Is it in Scheer’s platform to restore TFSA contribution limits to 10,000k per annum?

—————————-

This is my question too. He should certainly make this a central plank of his 2019 campaign.

Restore tax-free savings room for middle-income Canadians, and increase the pressure on tax evaders like Trudeau’s friends. Turn the Liberals into the true party of rich white guys.

Then again, I thought the Liberals’ pledge to axe the higher TFSA limit would do them in. It’s not surprising in hindsight that I was wrong : when so few Canadians save anything, the TFSA limit is irrelevant. $0 out of $10K is no better than $0 out of $5500.

#121 NoName on 11.13.17 at 6:33 am

#94 Brydle604 on 11.12.17 at 9:44 pm
#82 No Name
You forgot about the Ford F 150, pickup truck, Aluminum Body and high volume.
Expect GM to follow soon.

No I did not forget square aluminum box on steel frame…

http://www.fordf150blog.com/wp-content/uploads/2014/08/2015-F-150-types-of-metal-used.jpg

http://135jik1bbhst1159ri1ax2pj.wpengine.netdna-cdn.com/wp-content/uploads/sites/20/2017/09/Tesla-Model-3-structures_body-extrication-firefighter-brock-archer.png

#122 Ace Goodheart on 11.13.17 at 6:41 am

RE: #118 jane24 on 11.13.17 at 3:51 am
“I must admit that I am a bit shocked that in this time of fast changing business models, Canada does not have a govt program to protect the Sears workers. Here in the UK every pension plan has to pay into a govt agency that steps in to cover 80 -90% of expected private pension if a member company goes belly-up. For ordinary workers to lose what they have worked their whole lives for is truly outrageous. pensioners MUST be first in the queue.”

We wish.

Reality here is the queue goes something like this:

1. CEOS and upper management take their cut (usually in the multiple millions) in the form of golden parachutes and severance packages.

2. Secured creditors come next. They take the bulk of what remains.

3. Pensioners are last. Usually, they get nothing. They almost always take the relic of the company to Court. This results in lawyers getting whatever remains, in legal fees.

There is no protection here for pensioners when their company goes belly up. Their pension fund becomes someone else’s golden parachute and severance pay.

#123 Dharma Bum on 11.13.17 at 6:52 am

#16 Randy Anderson

Good luck hoping T2 will fund your retirement, I sure don’t. Case in point, I’m late 30’s and sitting on a 6 figure liquid asset right now.
——————————————————————–

“Boasting of wealth and virtue brings your demise.”
― Lao Tzu

#124 Howard on 11.13.17 at 6:53 am

#79 Happy Housing Crash Everyone! on 11.12.17 at 8:12 pm

Renner when I said this house https://www.realtor.ca/Residential/Single-Family/18661715/132-LAURELCREST-AVE-Toronto-Ontario-M3H2B3-Clanton-Park

Sold for $2,118,000 in five days in March? Well it’s remained UNSOLD since july/ August with price drop after price drop. Hey you stupid dirty SHYSTERS on here said it would sell easily for 1,950,000 and it didn’t. Now they trying to sell it DESPERATELY for $1,725,000 million. You dirty SHYSTERS just ruined another life.

Happy Housing Crash Everyone Everyone!:-)
The housing market is CRASHING!!!

—————————————-

5-bdrm / 5-bath.
Wilson Heights (very nice area).
Walking distance of a subway stop.
A bit suspicious that this one is having trouble selling.

#125 Dharma Bum on 11.13.17 at 7:01 am

#108 Dr.

That is the only way to explain how a person who grew up in a broken family, whose mother battled mental illness, and who never worked more than few days in his life could convince majority of Canadians to vote for him (his party).
——————————————————————–

The only way?

Hah!

Never underestimate the astonishingly shocking stupidity of the masses.

https://www.theatlantic.com/health/archive/2013/07/the-stupidity-of-the-crowd/278188/

“The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.”
-Bertrand Russel

#126 Dharma Bum on 11.13.17 at 7:05 am

#119 Under the Radar

Obese, diabetic and broke. Change it while you can.
——————————————————————–

Heed the words of Dean Wormer:

https://www.youtube.com/watch?v=mkoPq5AOCOA

#127 maxx on 11.13.17 at 7:15 am

“Of course, if T2 had kept the TFSA limit at $10,000 a year, a diligent saver who is now 30 years old could have $1.063 million at age 60, kicking out about $70,000 a year, tax-free, while retaining the principal.”

C’mon Garth. Encouraging and educating people to use the TFSA as a great retirement planning tool would have been far too sensible and intelligent. People might have become less dependent upon social programs, been less worried about money in their more fragile years and have had enough to spray around in the real economy. Like at Sears.

Look no further than the dunces on the hill.
The top dunce is completely misguided and believes that braying incessantly about the (dwindling) middle class impresses people. Helping people help themselves with effective tools is a far better concept.

Had dinner last week with a few boomers who basically had zero clue about what a TFSA was or was for. Blew my brains out. After 9 years in existence……Canadians are frighteningly clueless about building wealth for solid futures.

And how the he!! has a pandemic of pension deficits been allowed to happen. Obviously, the dunces that be do not see these as a fiscal no-go territory and have allowed corps to quietly slide pension funds elsewhere on balance sheets when convenient, “to be replaced later”. Then corps were given extensions on the replacement of those pension funds. Surprise!! Never happened.

When people finally realize that gubbmint is not their “friend”, they’ll see what it truly does protect: business, business, business. People are only protected inasmuch as they fit like little cogs into those businesses and turn into viable taxpaying units. And if they really behave, they also earn the designation of “consumer”.

When you get to retirement age, you need money more than ever. People don’t get this and end up spending their final years playing Rubik’s cube with their pennies.

This is no way to celebrate having won the grandest lottery of all – the lottery of life.

#128 Victor V on 11.13.17 at 7:15 am

40% of Canadians want Morneau out as finance minister: Survey

http://www.bnn.ca/40-of-canadians-want-morneau-out-as-finance-minister-survey-1.913626

#129 maxx on 11.13.17 at 7:33 am

#2 Kurt Edwards on 11.12.17 at 3:17 pm

….”If democracy is failing us, the solution is not better politicians, the solution is better citizens.”……

Speak for your supercilious, indoctrinated, shallow self.

“More tax & more government is not the solution. – Garth”

Too late, Garth, it’s drunk the dregs of the kool-aid punch bowl. With both mitts steadying the bowl. Party on, putz!!

#130 I’m stupid on 11.13.17 at 7:33 am

How many seniors lost it all in the 2008/2009 collapse?” Only those who sold in a panic when assets fell in value. Consistently, we are our own worst enemies. — Garth

Completely agree. The reverse is also true. I was heavely invested following the 2008/9 market meltdown. I gambled by buying big American bank stocks at prices that will never be seen again. The returns were astronomical by large cap standards. Those returns slowed as faith returned to the market. I stopped trading and got an adviser when I realized I was having a difficult time mentally buying equities at market value. Had I continued to self invest, I would have been sitting in cash from 2012 onward. It’s very difficult to beat the market over the long term, it’s better to consistently invest over long periods of time. Live your life backwards, save for retirement first then live with the money that’s leftover. If you’re 20 it’s ok to be poor. It’s not ok to be poor when you need someone to wipe your ass because if you don’t have money to pay someone to do it I can guarantee you’ll be living with shit in your pants.

#131 Yuus bin Haad on 11.13.17 at 7:44 am

I asked Bill about the Sears plan and he said not to blame him ’cause administrator’s in a blind trust and he can’t even remember the name of it.

#132 NoName on 11.13.17 at 8:04 am

That sinister thing called Facebook mesinger…

http://theearthtribe.net/video-couple-proves-facebook-listens-in-on-conversations-with-simple-experiment/

#133 IHCTD9 on 11.13.17 at 8:55 am

#12 prairie person on 11.12.17 at 3:48 pm

If you can afford it, why not keep the kids from having to pay the banks interest?

___________________________

That’s a job your kids really should be learning on their own.

If you’ve got the cash on hand and a big trust fund in the works, I don’t see the harm. But if you’re taking on a mortgage to make it happen and will be leaving a 6 figure inheritance, then your kids should be starting their independent financial education as early as possible.

#134 JohnnyBoy on 11.13.17 at 9:28 am

#98 Deplorable Space Dust on 11.12.17 at 10:15 pm

#95 Smoking Man on 11.12.17 at 9:50 pm

November when all the suck ups fitting crowd grow a beard for a noble case.

Me I’m suffering in acute arthritis.
Going to the south west.
..
Would you hurry about it dude.. you’ve been saying that for years
…………………………………………………………….
And all these years we just thought you were a deranged drunken mental case? Huh what do you know……….Acute Arthritis?

#135 under the radar on 11.13.17 at 9:45 am

#79
Not in the least surprised about this . That house is not worth 1.4 never mind what some fool paid. The greater fool theory in action , the music has stopped and now the last sucker will lose 400k .

#136 crowdedelevatorfartz on 11.13.17 at 9:51 am

@# 86 Just RUINED another life
“The buyer of the house SIGNED on the dotted line ? It is he/she whom is responsible not the agent….”

****

They purchased based upon dubious statistical information supplied by realtors, by media bought and paid for by shysters, by govt too tax greedy to legislate shysters, by banks too addicted to loans,……..
No one wants this gravy train to go off the rails when thay are driving it.
The derailment will be epic, bloody and longlasting ( unless of course, foriegn investors save us)

Caveat Emptor?
Only when the buyer is allowed to see verifiable stats, hear unbiased media discuss the markets and makes a decision on a level playing field….
Or, when shyster pigs fly.

#137 Randy Randerson on 11.13.17 at 9:55 am

#123 Dharma Bum on 11.13.17 at 6:52 am

Only people with neither will tell others to shut up.

#138 Randy Randerson on 11.13.17 at 9:57 am

#113 Linda on 11.13.17 at 12:28 am

Easy solution? Make your money and then get out. I’m not going to wait for the government to look after me, I’m going to make money, pay my tax, and spend my retirement where my money will last me 30+ years.

#139 crowdedelevatorfartz on 11.13.17 at 10:10 am

@#118 jane24
“For ordinary workers to lose what they have worked their whole lives for is truly outrageous. pensioners MUST be first.”
=====

Total agreement. They should recieve payment before Revenue Canada because…if the company pension goes up in smoke…..the govt will pay one way or another.
However, even most private (Sears) pensions probably wouldnt be enough for the average person to live on.

Time and again I listen to friends, coworkers, etc that are either too stupid, lazy or undisciplined to actually invest independently in their own retirement.
RRSP’s? TFSA’s? Might as well be talking Klingon to them.
Just ask the average person what CCP will pay them in retirement and wait for the “Deer in the Headlights” expression.
It isnt just Sears……
I know one guy who worked 35 YEARS as a mechanic at a car dealership….then Chev “downsized”. he was an excellent mechanic, people skills…..not so good.
So the younger, lower salaried, computor literate, HR buzzword spewing, ass kisser got his job.
Out on the street with a 1 year “working severance” ( ie paid for a year..If you get another job…severance goes “poof”).
Anywho. His wife divorced him and took his pension to pay for the teenage kids school.
He’s broke, living in a trailer, working part time, waiting for God only knows what.
RRSP’s, TFSA’s, ANY Savings? Pffft.
He’ll work at menial jobs, ( refuses to work as a mechanic ever again….) til he dies.
Stubborn + obstinate = Destitute

Basic Finances and Retirement courses should be taught in Junior High and High School….rather than say……
Who is allowed to enter a Transgender Washroom first?

#140 IHCTD9 on 11.13.17 at 10:11 am

#17 Kurt Edwards on 11.12.17 at 4:03 pm
“More tax & more government is not the solution. – Garth”

Weak, flippant, and unhelpful, and still caters to your target demographic. What trade offs should we focus on? Man up buddy, which services that benefit your target demographic should we cut? Take your time. Think about it. You’re a smart guy, I know you can do this. Take your giving back to Canada to the next level, and help make better Canadians.
__________________________________________

You can’t think of anywhere costs could be cut in Government?

You still think Government can raise taxes 2% and receive 2% more revenue?

Kurt my man, the future does not bode well for your ideology. Long term projections are taxes are going up, wages are going down (unless you work in the public sector), good full time jobs are still bailing out of Canada. This has been going on for 20+ years, and will carry on unabated – probably accelerating – no matter who is running the show.

Ever since the GFC our governments have been unable to balance a budget, but they’re still trying to grow the economy to do so. Time to face the music, they’re not growing jack, and they’re not balancing squat. It’s been 10 years. What’s the definition of insanity again? Borrowing to run a government leads to Greeceville, and you can’t just slap on more taxes and expect the funds to come rolling on in.

In short Kurt, you can worry about what will get cut all day, it’s wasted effort. You should be worrying about your own household.

The cuts are coming Kurt, the cuts are coming…

Time to update your philosophy and get with the times.

#141 crowdedelevatorfartz on 11.13.17 at 10:17 am

@#113 linda

“no, it is not the responsibility of government to save me (or anyone else) from our own poor financial decisions. However, it would be the smart thing to do. Because unless you can explain to me how it is ‘fair’ that those of us who do make good decisions must pay for those who don’t, the only solution that comes to mind is enforced savings. And we do pay. Taxpayer dollars fund OAS/GIS as well as health care.
*****

Total agreement.
The average person is either too stupid or (in most cases) too lazy to properly save for retirement.
Australia seems to have figured it out.

https://www.google.ca/url?url=https://www.forbes.com/sites/nextavenue/2013/08/19/to-solve-the-u-s-retirement-crisis-look-to-australia/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjGzN6K7LvXAhVRymMKHST6DHUQFghIMAg&usg=AOvVaw2pJnBsEUYFnVOSavmPbD3P

#142 SNCF 231E on 11.13.17 at 10:24 am

I’ve always thought the only people to get pensions were corporate executives, rock stars, professional athletes and civil servants. My father retired with a nice corporate pension but, in all the years I’ve worked with one exception, I’ve never seen anything resembling a corporate pension at my numerous employers. The one exception paid me out when I left them many years ago, but they ended up a casualty of the Panic of 2008, so I would doubt the current retirees are getting much, if anything.

You write that 37% of workers have a company pension. Given that this number includes civil servants, whose gold-plated DB plans are legendary in their generosity, it’s reasonable to think that the number of actual private sector workers with a pension is well below that already low percentage.

The open question now is why no political party has recognized this issue of pension fairness between the protected government worker class and employees out in the real economy. I’ll be working for far longer than my parents ever did, which isn’t so bad as I like what I do, but that isn’t the point. That some workers with access to our tax dollars can feather their nests quite comfortably, while the rest of us actually PAYING FOR those gold-plated pension schemes have to work into our 70’s or later isn’t right. At some point this private sector/public sector divergence will become all too clear, and some politico will ride it to power. That’s my hope. JMHO

#143 Herb on 11.13.17 at 10:28 am

Can you imagine a business writer insinuating that rich people have “disproportionate clout” and might even use it to make sure they stay rich, possibly at the expense of the general public?

http://www.cbc.ca/news/business/paradise-papers-rent-capitalism-tax-havens-1.4389079

#144 Kurt on 11.13.17 at 10:29 am

Good gravy. Reducing the TFSA makes people dependent on the government? If you could save $10,000 per year why not put it in an RRSP, then invest the $4,000 tax return in an TFSA? $1.3 million after 30 years. Generating $90k in income, $75k after taxes.

#145 IHCTD9 on 11.13.17 at 10:33 am

#30 MSM-Free Zone on 11.12.17 at 5:07 pm
“…..By the way, Bill Morneau’s family company – Morneau Shepell – administers the Sears plan, which has been chronically underfunded…….”
____________________________________

Bill Morneua. Quelle surprise.

The same self-serving hypocrite who, as previously head of Morneau Shepell in the private sector, lobbied feverishly to allow pension administrators to convert sacred Defined Benefit pension into much inferior ‘Targeted’ Pensions.

The same self-serving hypocrite who, after becoming Finance Minister, TABLED bill C-27 TO ALLOW pension administrators to convert sacred Defined Benefit pension into much inferior ‘Targeted’ Pensions.

The same self-serving hypocrite, who used a ‘loop-hole’ himself to avoid placing his $21 million shares of Morneau Shepell into a blind trust.

The same self-serving hypocrite who’s shares profited $2 million upon introduction of his own bill C-27.
__________________________________________

…and the same kind of Politician that Canadians will vote in again, with a majority in 2019.

Quelle surprise? (not).

#146 For those about to flop... on 11.13.17 at 10:45 am

I’ve reported recently a few sales lately around the 15m mark and last weeks biggest sale in the city clocked in at that number as well.

It went for 5 million less than ask but the developers still likely made a pretty penny.

So there is still some money floating around , but overall Vancouver seems to be heading into its seasonal slumber and I would not be surprised if a fair whack of the city is negative year over year by late January….

M43BC

http://www.vancourier.com/news/they-asked-20m-for-new-vancouver-mansion-they-got-15m-1.23091307

#147 IHCTD9 on 11.13.17 at 10:57 am

#38 Hogtown Indebted on 11.12.17 at 5:47 pm

Conservative idiocy is the greatest threat to the retirement stability of [Public Sector] Canadians.
_________________________________________

Fixed.

…and frankly you need an adrenalin shot to the brain if you think things would be any different if some other party happened to run the show.

Do yourself a favor and take Garth’s advice, forget about what you’re going to get from OMERS and take the bloody bull by the horns already. If you get anything resembling a pension at all – consider it a bonus.

#148 Frito on 11.13.17 at 11:08 am

Your comment re Morneau Shepell administering the pension is a bit misleading. You imply they mismanaged the fund or were long aware of the shortfalls,but they were just appointed to deal with the pension on October 17th in wake of the bankruptcy.
https://globalnews.ca/news/3809071/sears-pension-plan

I implied nothing. But having the finance minister’s family company in charge seems a tad odd. — Garth

#149 fascinating on 11.13.17 at 11:16 am

this Dharma ‘Bum’

he/she quotes others relentlessly. Is that why you choose your alias? self worth issues? hence the use of ‘Bum’?

this place is a mental ward

#150 RyYYZ on 11.13.17 at 11:20 am

Leaving aside my own concerns and worries, I feel badly for these people at Sears (and before them Stelco and many others) who thought they had guaranteed pension and benefits plans that would see them into/through their retirements. Unfortunately the reality is that no pension plan can be 100% guaranteed unless there is some entity willing and able to step in and top it up, probably from current workers, if necessary. Which is guess is another way of saying that most of these plans have at least a whiff of Ponzi to them, requiring the ongoing contributions of current employees to keep the plans afloat.

#151 rainclouds on 11.13.17 at 11:27 am

#111 pete “I LOVE how Trudeau BLOODY the nose of that Conservative fool in the boxing match. Then he went on to bloody the nose of the stupid conservative party.”

Yes pounding the thug senator (one of the trifecta of ethically challenged losers appointed by Tubby) was a nice touch.

Then he went to Halifax…….

http://thechronicleherald.ca/sites/default/files/imagecache/slideshow_image/op_image/B97359860Z.120140825170542000GRF6DIQK.11.jpg

#152 Bytor the Snow Dog on 11.13.17 at 11:29 am

Cecil Henry sez: “A man is not a slave and my labour is my own.”

Oh yeah? Ask any man who has been through a divorce about this.

crowdedelevatorfartz sez: “His wife divorced him and took his pension to pay for the teenage kids school.
He’s broke, living in a trailer, working part time, waiting for God only knows what.”

Case in point right there.

#153 Evangeline on 11.13.17 at 11:40 am

Sears is a very sad story. I blame poor management.

It had a gold-plated brand that bad management decisions destroyed. It branched off from straight retail into providing services and there were so many horror stories and complaints about the services that could be read online.

When its flagship store was located in the Eaton Centre the store was extremely unpleasant to shop in, dingy and disorganized, and it wouldn’t have taken a lot of money to make it appealing. Just some imagination.

Sears online shopping was pretty good but when they changed from Canadian customer service reps to offshore, it was far less efficient. The Canadian reps had probably shopped at Sears themselves, the offline reps hadn’t … it was just an name to them.

As for vacuum cleaner bags for Kenmore, Canadian Tire sells generic bags that fit perfectly.

#154 IHCTD9 on 11.13.17 at 11:58 am

#50 Entrepreneur on 11.12.17 at 6:17 pm
Wonder why politicians want to keep us poor and dependent? Simple, to keep control of the mass, to keep them from forming a riot/revolution. A big fear for politicians but keep on pretending/ignoring the concerns, the problem will fester into one big one.

And I agree with #26 MSM-Free Zone on T2 who was intelligent enough to deceive us at election time and as for the “tarnished hypocrite no longer deserves capitalization” are my feeling exactly. Whenever I see the news with T2 in China I am starting to think “why don’t you just stay there, don’t come back.”

When I hear of all the deaths in B.C. with the opioids crisis (mostly males), when I hear most small businesses sell internationally, when I hear manufacturing is almost nil in Canada, when I hear we can get cheaper products from another country I just shake my head in disgust, like really.

We need a leader that thinks for the people within the borders.
_________________________________________

I agree with everything you’ve said, but that won’t change a damn thing for either of us. The West is in the throes of change once again. We’ve come from agriculture, to natural resource extraction, to infrastructure building and manufacturing, to a service/consumption based economy.

What’s next? I can’t see the kind of high numbers of good paying FT jobs ever coming back again. I do see continuing and significant reductions of costs for consumer goods, and even services in the future.

In my lifetime, I expect high tax costs as a result of living under 3 levels of broke government, and steadily increasing costs for transportation and heating fuels, along with electricity. Housing will be expensive in GTA/YVR but fairly well priced everywhere else as it is now.

I expect professionals to see wages drop even more as competition for dwindling “white collar” jobs increases and more and more economic class immigrants move into the big cities. I will definitely see the erosion of big city median household incomes to that equal to or less than much smaller cities – probably less. Probably going to look something like: rich and poor in the big cities, middle class somewhere else. Minimum Wage will continue to be one of the fastest increasing pay gradients in Canada. Also the fastest growing earnings in Canada as far as the number of folks working for it.

IMHO, future prosperity for the average Joe will be won in large part by avoiding and offsetting the high taxes, controlling energy useage with an iron fist, and living in an area where you can easily afford shelter.

Keeping your sorry behind out of poverty will be as much a function of escaping the obvious meat grinders of society as it is finding good employment.

#155 Evangeline on 11.13.17 at 12:04 pm

When I was an employee collecting a salary, I didn’t give much thought to saving for retirement because I couldn’t afford to make RRSP contributions. Hearing the word “RRSP” scared me and filled me with a sense of inadequacy and the result was denial about my future finances.

Another thing that had a negative effect on how I dealt with my finances, such as they were, was ad copy that showed how wealthy one would be if they started taking care of their finances in their twenties; being over twenty, the effect of those was more fear; it seemed as though anyone over 20 had no chance.

Things did eventually work out ok, but in retrospect the finance industry’s sales publications instilled more fear in me than inspired awakening.

#156 tomohawk52 on 11.13.17 at 12:25 pm

I wrote my MP suggesting that the government should allow a one-time deposit of $250K/person into their TFSA on top of their $5500 per year. That would allow middle-class people the opportunity to get much of their investments under a tax-free umbrella.

#157 BS on 11.13.17 at 12:26 pm

#2 Kurt Edwards on 11.12.17 at 3:17 pm

You, Garth, by relentlessly demanding lower taxes for your target demographic, without at the same time attacking services that your target demographic benefit from the most, are part of the problem.

Giving my money to the government so they can save it for me and then give me a portion back under their terms does sound like a solution. Or maybe the government of the future decides to spend the money on something else like Sears did and give me nothing. Completely out of my control.

Government is about as good at running a pension plan as Sears. Let the people keep those extra tax dollars and then let the people control their own savings and retirement. No middle man to screw things up or skim from it. I am guessing Sears workers wish that is how things worked for them.

#158 IHCTD9 on 11.13.17 at 12:31 pm

#55 Adam on 11.12.17 at 6:39 pm
“Then the voters are fools. The RRSP rewards the rich with higher contributions for higher incomes. The TFSA is the most democratic and egalitarian shelter we have. And which did he decide to gut? There is no defense. — Garth”

Sure, I can agree with that – but what does it really matter? In a democracy the voters call the shots….you don’t like democracy, I can think of a couple of other places you could move to, but won’t.

No wonder you didn’t last as an MP….you don’t get it that it doesn’t matter that you’re obviously smarter than everyone else.

Was that necessary? You are my guest here. — Garth
____________________________________________

Yes the Canadian voter is as dumb as dirt, the evidence is everywhere piled high for all to see.

But Adam, don’t pretend that voters have to move out to improve their condition when surrounded by financially stunted Canadian voters.

I can think of a couple measures you could take while staying right here, but won’t.

No wonder guys like me don’t feel it all that necessary to move. We’ve got guys like you who are only too happy to work till 75, and pay my share of government revenues.

Thanks mang, I and others appreciate your dedication.

BTW, I’ll be voting Trudeau in 2019, I could use another boost to my CCTB (beer money), and hey – the sooner the Feds are broke, the sooner us Canadians may see the light eh?

#159 JohnnyBoy on 11.13.17 at 12:33 pm

My father retired from Great-West Lifeco Inc with a tremendous pension plan. However he also padded his investment portfolio as even back twenty years ago he said no pension was safe. He taught me to invest and diversify. Smart man and a good teacher. I do not have a pension plan as I am self employed but my investments are no longer just RRSP’s. They are a dead end.

#160 Eyestrain on 11.13.17 at 12:41 pm

If we have been reduced to philosophising about the scatalogical (#130) I think I have something to contribute. For those of you who chased the dollar and failed to procreate (DINKs, I’m looking at you), your retirement outlook is indeed grim. Even barely adequate care will consume your nest egg within a few years. As for inadequate care, I know exactly what the food budget per diem is at the local nursing home, and my daughter spends more on her cat, who is boarding with us “temporarily”. Admittedly, the cat chow is an exorbitantly priced, specialty blend of mahi-mahi and beef tenderloin, but I digress. I do have a verbal promise from my Princess that, after working in a nursing home, she would NEVER do that to me. Money just can’t buy that kind of love. Garth, should I get it in writing?

#161 crowdedelevatorfartz on 11.13.17 at 12:42 pm

@#149 fascinating
” Dharma Bum…he/she quotes others relentlessly.”

******
Total Agreement
Much easier than original thought and quoting famous smart people creates the illusion that one may be “famous” and “smart”.
A lazy persons way of earning “cred”?

Anywho.

That being said.
Lets stay on the topic of Bums.
Did you know that every minute of every day, 3 million Americans fart?
And every minute of every day, 4 million Americans “like” something they see on Facebook.
Now if we extrapolate those numbers and put our deductive reasoning caps on ( rather than post other people’s quotes ad nauseum like Dharma Bum) we can assume that a small percentage of those Facebook “likes” were accompanied by a fart……

“like”!

#162 LivinLarge on 11.13.17 at 12:45 pm

First, and not most important, TFSA contribution limit was $10,000 for one year and it had been doubled form that one year in a cynical vote buying dance by Helmet Head.

Yes, yes, yeas, it would have been extremely valuable to every Canadian to have that lucrative limit ad finitum but seriously, do you really think that even Helmet Head really intended for Canadians to have over a million $$ that remained tax free and earning tax free for ever? In other words, with the population aging, do you really think he was planning for the largest cohort of the population to be out of the reach of the governmen’t fiscal needs??? Yea, right and I have land for sale in central Florida and a bridge in NYC.

Second, “In 1977, says Stats Canada, 52% of us has a pension plan (either defined benefit or group RSP) but by 2011 that had shrunk to 37% – and continues to slide.” now, since Statscan have tracked this important development for such a long time, why has there been no truly fundamental change to the RSP system since it was introduced in 1957?? About the only real change in 60 years has been the increase to foreign content allowed in RSPs. At least with RSPs the Feds know they’re getting their pound of flesh at some point. The TFSA is simply lost revenue and portenially lost revenue in perpetuity.

So, while sure, the $10K limit was fantastic, even back then there were only about 5% of taxpayers maxing at $5K.

#163 IHCTD9 on 11.13.17 at 12:46 pm

#62 Randy Randerson on 11.12.17 at 7:10 pm

Hey Adam, I just got a 5 figures tax refund this year courtesy of RRSP. Part of that goes into my TFSA. Did you?

No? Then sux to be you .
_____________________________________

I got a 5 figure return too, also thanks to the RRSP.

Adam covered it for me so the libs didn’t even notice the shortfall.

I think Kurt Edwards mentioned he would cover your return Randy, he wants to keep the Libs fully funded because cuts aren’t an option.

(Thanks Guys!)

#164 n1tro on 11.13.17 at 12:49 pm

#113 Linda on 11.13.17 at 12:28 am
‘Garth, in response to your comments, no, it is not the responsibility of government to save me (or anyone else) from our own poor financial decisions. However, it would be the smart thing to do…….But it is a practical solution to a problem that otherwise will continue to cost us more than we can afford.
—————————-
Your premise only holds true if the money that is being forced from everyone is equally distributed down the road which it won’t be. Thus there is nothing “practical” about your endorsement of a flawed solution which you admit is not the government’s responsibility. Take responsibility for yourself and start saving. There will always be people who go for the free ride but forcing the rest to suffer is just not fair.

#165 Evangeline on 11.13.17 at 1:00 pm

#156

“That would allow middle-class people the opportunity to get much of their investments under a tax-free umbrella.”

Wouldn’t that mean the book value of any “buy and hold” equities transferred to the TFSA would be upped to current market price, and would then deliver a much lower yield? Maybe the loss in yield could be greater than the benefit gained?

#166 tad odd on 11.13.17 at 1:17 pm

#148 Frito on 11.13.17 at 11:08 am

Your comment re Morneau Shepell administering the pension is a bit misleading. You imply they mismanaged the fund or were long aware of the shortfalls,but they were just appointed to deal with the pension on October 17th in wake of the bankruptcy.
https://globalnews.ca/news/3809071/sears-pension-plan

I implied nothing. But having the finance minister’s family company in charge seems a tad odd. — Garth

In other words big fat screaming conflict of interest.

#167 n1tro on 11.13.17 at 1:20 pm

#116 Bob Dog on 11.13.17 at 1:52 am
If the CEO takes 100 times the median salary in a corporation, they must suffer 100 times the loss of the average employee when they fail.
———-
If the Prime Minister gets 4X the median income, is he 4X as smart as the average Canadian? If so, what does it say about Canadians?

#168 Vampire studies GMST on 11.13.17 at 1:20 pm

159 Johnny – why do you say RRSPs are a dead end?

#169 Lost...but not leased on 11.13.17 at 1:21 pm

Under the theme:
“ALL WARS ARE BANKERS WARS”

I may suggest people GOOGLE
” The Cloward Piven Strategy”
This is a plan to overload the social safety net with beneficiaries in an attempt to wipe out the middle class an set up a socialist system, the precursor of the communist system.

In other words..don’t worry about silly things like pensions..there won’t be any except what Big Brother chooses to give you.

#170 Stan Brooks on 11.13.17 at 1:33 pm

This is already becoming pretty embarrassing.

To retire in a supposedly G7 i.e. ‘rich’ country, you need to start saving at age 20, learn investing (or you are screwed).

You can study 4-5 years at university without a specialty (i.e. pre-med) and you are rich (allegedly 1 %-er) with income that won’t allow you to qualify for a mortgage on an average house in the big cities.

But hey, the wealthy lie-berals think about you with the new carbon taxes, increased CPP contributions (but very little of that reflected in benefits) for a payout that won’t be sufficient to live on cat food.

It is an absolute mental institution (I do not comprehend how supposedly intelligent people can handle that crap) accompanied with ‘beautiful’ weather, -10-17 Celsius in Ontario in the 1st week of November.

Really?

#171 Stan Brooks on 11.13.17 at 1:45 pm

I implied nothing. But having the finance minister’s family company in charge seems a tad odd. — Garth

—————————————

Did the arrogant and rich lair recuse himself? No? I thought so.
He is sooooooooooo busy working for us, Canadians.

As his boss whose only contribution to this country is his choice of socks.

It absolutely amuses me how foreigners could be so found of such a dumb fella.
They find him cool.
Forest Gump is a league above this guy.

#172 LivinLarge on 11.13.17 at 1:49 pm

I’m going to break my own rule and answer my own semi rhetorical question and at the same time answer Vampire’s #168 question.

The RSP is the only gift that keeps on giving forever to the Federal coffers. No other system or policy ensures that the Feds can continue to tax 20 and 30 year old incomes. To call that a gold mine for any flavour of Fed is greatest of understatements.

To put some general numbers to this I’ll use some conservative round numbers but the RSP system works regardless of whether round numbers are used.

So, conceptually, the RSP allows you to sock away money today while making that contribution free of tax in the year you contributed it. But, let’s say you contributed in a year where your tax rate was %25 and then took it out many years later when your tax rate was %35. Doesn’t look so bad does it? Well, that increase from %25-%35 is an INCREASE of %40 (10/25) and that %35 rate in 20-30 years is also on every bit of the capital growth of the RSP in the intervening years as well. So, the Feds give you a little benefit today for a %40 increase in what they get back sometimein the future. The Feds know they are getting back every penny they allowed you years ago plus a huge increase. The gift that just keeps on giving.

The TFSA on the otherhand doesn’t cost the Feds one cent when you contribute but it costs them a huge amount when you take it out.

For decades the myth has been that RSP were created as some altruistic effort by the Feds to help Canadians retire more comfortably. Yet according to Fearless Leader’s original post the Feds were under the impression that over %50 of Canadians had what was likely a defined benefit pension when the RSP system was conceived. Either the Feds knew in 1955 when planning to introduce the RSP system (launched 1957) that DB pensions were going to disappear or they expected only a small % of Canadians to need much topping up at retirement. Personally, I can’t buy that the Feds were capable of such prescient foresight.

#173 Keith in Rio on 11.13.17 at 1:50 pm

Socialism is merely communism, but without the barbed wire, guards, and dogs.

Socialists economically strangle you to keep you dependant on government and in line, rather than throwing you in a gulag.

Liberals are the pallbearers of societies.

#174 Stan Brooks on 11.13.17 at 1:56 pm

At some point intelligent people seem to understand that there are battles worth fighting and some that should be avoided at any cost as the potential benefits from winning is far inferior to the costs of fighting.

Fulfilling Life in Canada under such embarrassingly dumb and corrupted management seems more of the second.

I guess we are not that intelligent. Just proud. ™

#175 TurnerNation on 11.13.17 at 2:05 pm

So the economy is so good, global conglomerate GE cut its dividend 50%.

Another one…growth in Kanadian economy so good you get 1% on a GIC.

ROTFLOL.

#176 NoName on 11.13.17 at 2:12 pm

Interesting read

https://www.wired.com/story/grad-students-are-freaking-out-about-the-gops-tax-plan-they-should-be/?intcid=inline_amp

#177 Overheardyou on 11.13.17 at 2:21 pm

#17 Kurt Edwards on 11.12.17 at 4:03 pm
“More tax & more government is not the solution. – Garth”

Weak, flippant, and unhelpful, and still caters to your target demographic. What trade offs should we focus on? Man up buddy, which services that benefit your target demographic should we cut? Take your time. Think about it. You’re a smart guy, I know you can do this. Take your giving back to Canada to the next level, and help make better Canadians.

—–

He is making better Canadians. He’s proving free advice to help those get ahead and secure their financial future. What have you been doing?

#178 Ace Goodheart on 11.13.17 at 2:22 pm

Back in 1995 Mike Harris won the Ontario election by promising to scrap the very controversial photo radar program, enacted by the NDP.

Upon being elected, he did exactly that. Enacting photo radar was one of the biggest screw ups ever by a sitting government in Ontario, and to a large part led them to losing the election.

Fast forward to 2017. We have a rather unpopular Liberal government led by a lovely lady whom no one likes. Opposed, we have the odd, unusual, not very personable and a tad eccentric leader of the PCs, who despite his best efforts, cannot seem to get the population to warm up to him (maybe it’s the “Union Boss” mafioso hairdo?)

So what do our long suffering, losing at the polls Liberals do?

Well, they make the same mistake that the NDP did back in the early 1990s. Enjoy:

https://beta.theglobeandmail.com/news/national/as-ontario-eyes-use-of-drones-for-highway-enforcement-critics-raise-privacy-concerns/article36934239/

Drones, my friends. Unmanned aircraft patrolling highways and giving out tickets.

Do you know what the Cons are going to do with this? The Libs have just lost an election. “We will ban drones from being used in law enforcement on our highways” will be the Conservative election promise. And they will win.

History repeats itself.

#179 Overheardyou on 11.13.17 at 2:35 pm

#68 X on 11.12.17 at 7:16 pm
More tax & more government is not the solution. – Garth

Might want to tell that to all the Millennials that will vote NDP at the next election as T2 is old news to them.

53 Adam on 11.12.17 at 6:33 pm
A very large part of Trudeau’s platform was to nix the $10k TFSA limit. Trudeau didn’t nix it, the voters did. They nixed it not because it was or wasn’t a good idea, it was because it wasn’t relevant to them because very few people use the current $5500, a $10k limit isn’t relevant to them.

Remarkably short sighted. Wouldn’t you rather have the TFSA room for if/when you come into money. It would help many retirees/elderly (those who need income the most) shelter money from taxation.

Just because you don’t have the funds now to place in it, doesn’t mean it wouldn’t be great to have.

—–

The reason I’ve come to learn is because the media informed Millennials that the TFSA is for the wealthy to shelter tax gains and that it would rob the government of much needed revenue. Millennials are all about equality right? So if they can save or earn enough to fill up the TFSA no one should.

Sad but true. Not like they can save anyway, many I know live pay cheque to pay cheque going out for dinner, buying shiny things and like you guys joke about, getting a spiced pumpkin latte for $8 twice a day. Oh wait, they spend $28 on Uber (one way) to travel work where they get paid minimum. LOL

#180 Millmech on 11.13.17 at 2:37 pm

#130 I’m Stupid
Your experience mirrors mine,went all in to equities during the meltdown and made out like a bandit.Thought I was a genius and started making mistakes,turned it over to the pros and haven’t looked back.
It seems everyone’s financial plan is to buy as much as you can afford pay it off and then sell for profit,when the retirement comes and that is their only asset they would rather eat cat food than sell.I see it lots now with friends supporting their parents in million plus homes and living in poverty,they still think renting is throwing money away even at their advanced age,can’t bring themselves to sell and capitalize on the gains and have a care free retirement.

#181 joblo on 11.13.17 at 3:03 pm

Go ahead fire Morneau, me thinks he cares? Nah.

Look Pa just generated $2M for the FIRM.
P.S. Postcards from the south of France soon.

#182 Howard on 11.13.17 at 3:23 pm

#162 LivinLarge on 11.13.17 at 12:45 pm

——————————————

I happen to think that the increase in TFSA was a policy of genuine conviction, it certainly is in keeping with Harper’s general philosophy of direct payments to taxpayers (or in this case, direct cancellation of a portion of tax) vs large government projects. Recall the debate between Martin’s massive national day case scheme vs. Harper’s payments to parents.

But even if it was cynical politicking, so what? Every party does it. At least in this case it was something that could benefit EVERYONE in the country. Liberal politicking focuses on special interests, so naturally as a Caucasian native-born Canadian, single, earning somewhat above average salary, I never get anything from them.

So yeah, I’ll take Tory politicking any day. At least it tends to be egalitarian.

#183 You're on your own on 11.13.17 at 3:27 pm

Pretty much sums up how life works.

You (and by extension your family) are essentially on your own, left to your own devices and need to take care of yourselves.

The middle man (government) is collecting from you, for their benefit and to support anyone but you for as long as you are a working and producing member of this society.

Don’t take anything for granted and don’t kid yourself that there might be a pot of gold at the end of the rainbow.

#184 MF on 11.13.17 at 3:40 pm

142 SNCF 231E on 11.13.17 at 10:24 am

Wrong. As per usual.

I’ve posted a few times about this but I’ll say it again for people who are still clueless.

Most government workers hired in the last 15 years are on contract with zero stability. They aren’t thinking about their pensions…they are worried about getting renewed in 6 months.

Time for you to leave the 1990’s and enter this century/millennium.

Oh, and you can argue they pay their own pensions because taxes are deducted off their own salaries. No one works for free.

MF

#185 Vampire studies GMST on 11.13.17 at 3:49 pm

172LivinLarge – thanks for your response. This would indeed be the case if your income in retirement exceeded your working income, or if tax rates increased greatly over the time period from contribution to withdrawal.

I have other tools at my disposal, so do not have a huge RRSP, but was careful to create one for my spouse as well. I dont trust any promises of pension income splitting.

My retirement income will be lower than my working income and I can start my withdrawals early in hopes to reduce my RRSP substantially by the time a RRIF is required.

I’m still curious to hear Johnny’s situation.

#186 MF on 11.13.17 at 3:50 pm

179 Overheardyou on 11.13.17 at 2:3

Any support for the axing of the TFSA was out of lack of intelligence versus age demographics.

It’s simple. If Someone is below average intelligence, doesnt understand what the TFSA is, gullible and at the mercy of Liberal propaganda…then they supported the reduced TFSA.

Simple.

MF

#187 Decentralised Decisions Advocate on 11.13.17 at 3:55 pm

@113 Linda: You cannot have a central person making all the investment decisions. The decisions must be decentralised and made by thousands of individuals. The failure of central planning is well documented.

As the CPP is made larger, the decision making will direct capital to wrong places and stagnate the economy, by defunding small business, sucking all the savings out of the economy.

Forced participation by the majority just because you can point at a few, is not the correct solution. Instead, help your neighbour make better decisions, like Garth is doing. That is the decentralised solution.

The communist argument throughout its birth and failure, points at incompetent people and enslaves the competent.

#188 LivinLarge on 11.13.17 at 3:58 pm

Well Howard “I happen to think that the increase in TFSA was a policy of genuine conviction, it certainly is in keeping with Harper’s general philosophy of direct payments to taxpayers (or in this case, direct cancellation of a portion of tax) vs large government projects. “…it is certainly your perogative to believe this if you choose to. The big “but” is in the timing and scale of Helmet Head’s doubling of the limt. Steady yearly increases to the limit and then one enormous increase immediately before an election that he appeared to be at risk of losing the majority. That approx. 5% of voters who already maxed their TFSA could have been all the margin he needed to retain the majority government. He called the election supremely confident of at least winning a plurality and that extra %5 or so could have locked the majority.

None of us will likely ever know for certain but the simplest answer to any problem is usually the correct one.

#189 MF on 11.13.17 at 4:06 pm

#179 Overheardyou

Not entirely the spiced pumpkin latte. House prices have appreciated 300% and rents are sky high too.

MF

#190 Parsonage on 11.13.17 at 5:12 pm

@#132 No Name
The Nice Guy at the tech store told me Google Home does not listen to anything we say until we say “Hey Google”. ? ?

Not to be ageist, but he was quite young. And we did not buy.

#191 jess on 11.13.17 at 5:54 pm

3 gold iphones leak maldives why would the maldives need aid? This is the height of shyst!!!!watch

Maldives: How do you launder $1.5 billion?
by Will Jordan
7 Sept 2016

http://www.aljazeera.com/news/2016/09/maldives-launder-15-billion-160904112412661.html
They declare ,”we are not money laundering haven
how many pallets layered with cash 600 7 800 no problem …the structure is layered through 7eral shells
================
Yameen in 2012 goes to trial when all of a sudden a “coup” marches out the president, Nasheed into prison calling him a terrorist…sound familar? Then he takes over.
============================
2002 OECD Concludes Maldives Not a Tax Haven

British taxpayers fork out £45m in foreign aid to paradise islands that charge NO TAX
BRITISH taxpayers forked out £45million in foreign aid spending to countries classed as tax havens in just one year, it emerged today.
By Greg Heffer, Political Reporter
PUBLISHED: 12:21, Fri, Oct 30, 2015 | UPDATED: 16:11, Fri, Oct 30, 2015

in total, 13 countries included on the tax haven blacklist received £45million in Overseas Development Assistance handouts in 2013, the most recent year for which aid spending figures are available.

These nations are Anguilla, Antigua and Barbuda, Belize, Grenada, Liberia, Maldives, Marshall Islands, Mauritius, Montserrat, Panama, Seychelles, St. Vincent & Grenadines and Vanuatu
=====================
It would take the imaginary flowerpot manufacturer’s accountant less than an hour to comply with the Maldives’ tax code. so-called “compliance burden”

#192 Gravy Train on 11.13.17 at 5:59 pm

#70 Smoking Man on 11.12.17 at 7:41 pm
“… Just imagen….”

I usually just pass over SM’s interminable spelling errors, but this time I couldn’t help notice that the word Imagen would make a great name for a biotechnology company. We already have such company names as Amgen, Biogen and Celgene. I’m surprised that no one thought to pick the name Imagen (it’s low-hanging fruit).

Oh—wait a minute—it looks like the name has already been snapped up by a media management company.

For a second there, I thought SM was a genius! :)

#193 maxx on 11.13.17 at 9:09 pm

#62 Randy Randerson on 11.12.17 at 7:10 pm

#53 Adam on 11.12.17 at 6:33 pm

“Hey Adam, I just got a 5 figures tax refund this year courtesy of RRSP. Part of that goes into my TFSA. Did you?

No? Then sux to be you .”

Great methodology RR….I keep explaining this to the sound of crickets, except for one, about a month ago. Hordes of fiscal fools don’t seem to get that there is no minimum contribution, that unused contribution room is not lost and that life circumstances can result in that contribution room becoming VERY useful down the road. It seems that a persistent characteristic of Canadian culture is that the green-eyed monster is alive, well and thriving.
Vive le 7%!

#194 OZY - expatriate your $$$ on 11.13.17 at 10:44 pm

WHAT ABOUT INVESTING OUTSIDE CANADA – WITH 75% OF MASSES NOT BEING BORN HERE…

so much opportunity elsewhere

stop reading about rrsp tsfa cpp and other wealth destroying canadian inventions

#195 Claude on 11.14.17 at 4:23 pm

who to believe?
http://news.google.ca/news/url?sa=T&ct2=ca&fd=S&url=http://thechronicleherald.ca/canada/1520444-home-sales-in-b.c.-rise-in-october-despite-higher-prices-less-choice&cid=52779675956528&ei=210LWpjLDoTvjAGn54O4Bg&usg=AFQjCNE8KDdgYnjB19uQmHthr0KT4G748A