It’s all good

The US stock market has shed 9% from its all-time high last month. Some people think it’s on sale now. Others believe it’s going to zero. All the attention this volatility has garnered proves one thing – we fear losses more than we crave gains. If you ever want to sell a book, newsletter, asset or service, just tell people everything’s going to hell. They’ll eat it up.

What happens next? The answer is below, but first we must put things into context. The context of a life. Alyssa’s life.

“I’ll start with the obligatory ‘I LOVE your blog’ comment,” she says, wisely, “(but I seriously do, I read it every day and have co-workers on the bandwagon now too). Truly, I find your posts to be informative, concise and witty, all while failing to cower to the comments section.”

Good. Now here’s her story.

“As almost 30 year olds, my husband and I are considered moisters and followed the home ownership ‘dream’. Then we sold in November 2016 to rent and were blasted for such a heinous crime and drop in social status by friends and family. Meanwhile, we had almost $100,000 in net profit that we invested. Fast forward to last month. New year, new us (figuratively). We decided to move back to Guelph (from a small town) and pay more in rent for somewhere we can walk to downtown and have more amenities. We were doubling what we were paying in rent before (we now pay $1,900 for an executive 3 bedroom across from a huge park within walking distance to work and downtown). Our friends were incredulous (yet again) that we were *gasp* “still RENTING?” Don’t you want to OWN? They’d cry at us while sobbing over their rising mortgage payments and freezing and bursting pipes in the basement.

“On top of renting a newly renovated, beautifully restored farm house style place, I decided to sell my car and lease. Cue more outrage and incredulous cries from friends and family of “didn’t you just get a new car 2 years ago?” – “shouldn’t you guys be focusing on saving so you can buy again when your lease is up?” (You get the gist). By selling my 2015 SUV back to the dealership and leasing a brand new 2018, I’m saving over $300 a month (and put $0 down, while getting a cheque for $2K from the dealership). You posted about this a while ago (leasing rather than owning a depreciating asset) and I am SO thankful you did!

“I’m also thankful for your constant posts about not putting all of your eggs in one basket (RE risk). My husband and I have come to truly believe that it doesn’t matter if the landlords are funding their retirement off our rent or if the dealership is making a premium off our payments. Because at the end of the day, it’s all about OUR cash flow (and ultimately savings). If I can lower our risk exposure and be spending less per month by making simple lifestyle choices, why wouldn’t we? We now just over $300,000 invested, living in a beautiful place, with limited risks and exposure, driving a new car and being able to walk to work. So remind me again why I would want to drop over $100,000 to move my stuff into a particle board new build on the outskirts of town with no services or amenities?

“Thank you again for ALL that you do. It is so honestly appreciated and you’re making such an impact. Whether you see it or not, please know we’re out here listening and altering our courses because of your constant education and encouragement (and wit too!). A.”

Could A & her squeeze have made some more net worth by climbing the property ladder instead of renting and investing the house money? Maybe. But does it matter? She has freedom, choices, liquidity, cash flow, wealth and time, while being free of debt and encumbrance. Is this not what youth is about? Alyssa isn’t stressed over about rising mortgage rates, B20, property tax, clogged gutters or being trapped in an illiquid property. And by eschewing the Big Smoke she can live a happy, affordable, life in a funky little city.

I’ll wager this, too: Alyssa doesn’t actually care that equities are lower than they were a month ago. That’s smart – it doesn’t matter to a 30-year-old, and it shouldn’t matter to a wrinklie, either. In the sweep of things, this correction is a dramatic non-event.

Yes, last week was the worst seven days for equity performance in two years. After hitting 70 all-time record highs in 2017, this year we’ve slumped back to where we were last November – which felt awesome at the time. Investors have been lulled into ever-higher valuations and, as with real estate, have unrealistic expectations.

The current volatility and price roller-coaster would only matter if we were heading into a bear market – which typically sees a 20-30% drop and lasts a couple of years. But that ain’t happening. The US economy is expanding just fine. Global growth is the best it’s been in eight years. Corporate profits are dazzling. Commodity prices are rising. No nukes are flying. Trump hasn’t blown up.

So, no recession. No bear. This is not 2008.

Having said that, stocks got too expensive, inflated, excited and toppy. Meanwhile central bankers have decided to nip all that stimulus they shoved up our wazoos for the last decade, bringing sharply higher interest rates and swelling bond yields. They want to curtail inflation, cool off investor horniness and let the air out of asset gasbags, like the Dow or your house.

Higher rates, higher wages, more inflation and rising debt yields are negatives for stocks because they increase corporate overhead while making equities less attractive compared to bonds. The financial gnomes and portfolio managers who obsess about this, because they have no life, figure there could be 5-8% more downside to come for the Dow or the S&P before stocks get too cheap to resist. Already P/E ratios (the price of equities in relation to what companies earn) are far more attractive than they were a few weeks ago. So if people liked owning them two months ago, they should like it again soon.

So, she isn’t selling. Or fearful. And grateful she’s not in a house with a mortgage about to renew higher while its value declines in an stagnating marketplace.

Alyssa’s greatest gift: contentment. How many among us possess this?

180 comments ↓

#1 Screwed Canadian Millenial on 02.11.18 at 5:05 pm

You are over your limit – Garth

——————

Komissar Turner, I thought my free speech allotment was centrally planned at 2 posts per thread?

I don’t believe I was over the limit. Please advise.

Is there any way to petition your Ministry of Truth for a quota increase to 5 posts per thread? It has been a wonderful harvest this season, after all.

Thank you Comrade.

#2 morrey on 02.11.18 at 5:09 pm

I agree with most of what “A” has said.

but when it comes to cars. I have always bought used. Paid cash, and kept the car over 10-12 years. And in most cases get to trade in the oldie for 2000k towards the next car. This in 90% of cases is way cheaper than leasing. Ask the Oracle of Omaha.

#3 Dobermanduke on 02.11.18 at 5:11 pm

SCM,

I voted for you to be allowed to come back on a limited basis. I want to change my mind and say goodbye. Nothing positive ever comes from your posts. Even when you are asking for yet another favour from Garth you can’t do it in a civil manner.

Take a hike

#4 Terry on 02.11.18 at 5:18 pm

“So, no recession. No bear. This is not 2008.”

The 2008/09 financial crisis was a “credit crisis”. Could this current market correction be a “debt crisis” developing now?

You don’t seem to give much attention to how much debt countries, states, provinces, companies etc… have right now? Are the bond market vigilantes going to turn this current correction into a deeper crisis because of too much debt all over the place?

#5 Mark on 02.11.18 at 5:19 pm

” The financial gnomes and portfolio managers who obsess about this, because they have no life, figure there could be 5-8% more downside to come for the Dow or the S&P before stocks get too cheap to resist. “

That’s all? The Dow and TSX Composite Index have similar earnings, around 1000 annually. The TSX is 15k. The Dow is 24k. Both pay around 400 annually in dividends. Rough numbers of course.

Will the Dow, in a rising rate environment, really grow fast enough to justify a 50% valuation premium?

Could be a lot more downside to come, especially in the overheated asset classes.

#6 For those about to flop... on 02.11.18 at 5:22 pm

Pink Snow falling in Burnaby.

These guys got wrapped up in the mania that was Spring Fling 2016,paying 250k more than this 59 build was assessed for at the time.

The new assessment barely trod water and so they are still in the same boat.

Paid 1.9 in May 2016 it is now leaking slowly and it’s all hands on deck.

This is the real thing ,but in their dreams they wish it was all just practice.

This is a drill….This is a drill…

M43BC

4891 Mckee Place, Burnaby paid 1.9 May 2016 ass1.65

Nov 17:$2,168,000
Feb 9: $1,997,000
Change: – 171000.00 -8%

https://www.bcassessment.ca/Property/Info/QTAwMDAzV0YzRg==

https://www.zolo.ca/burnaby-real-estate/4891-mckee-place

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#7 Bruce on 02.11.18 at 5:23 pm

Can someone provide the link or date to Garth’s article comparing leasing vs owning.

Thanks in advance.

#8 Victor V on 02.11.18 at 5:26 pm

“Alyssa’s greatest gift: contentment. How many among us possess this?”

Congrats Alyssa. It isn’t easy to go against the grain and the endless pressure of peers to do was you’ve done. You’ve earned your peace of mind, and in the years ahead, you’ll likely find your life continuing to improve in the way it matters and as Garth has articulated.

Our family made the same choice many years ago. Preferring to rent and invest — and be debt free.

We’ve never uttered one “I-told-you-so” so to our friends and family who find themselves more and more in a bind today; but I will concede that the stress in our social circle, has impacted lives, created resentments; and we have lost a few ‘friends’ in the process.

The only thing that matters is that you continue to put your own family first and that you continue to make these kinds of good choices in the years ahead.

Kudos.

#9 Boonerator on 02.11.18 at 5:26 pm

Leasing vs buying. Victoria drivers are spoiled. The local Craigslist equivalent ”usedvictoria.com” usually has 4 or 5 Mercedes or BMW’s selling for well under $5000.
Being such a temperate climate with very little salt, they are often in new car condition.
I test drove 2 almost identical 1998 Benzs and picked the one with fancier options and a cost around $3000.

Yes, some parts are very expensive, but considering the initial outlay, who cares?

A friend bought an older Hyundai for more $ the same week I was avoiding speed traps.
2.8 litre V6 really goes.

Why lease?

#10 Stone on 02.11.18 at 5:28 pm

These are my favourite type of posts. It’s nice to see someone who is content. I’m on the same path and completely agree about how it allows someone to feel so unburdened. No debt (except a car loan and it’s not a big deal when the rate is fixed at 0.99% for the full term/amortization) while owning a balanced and diversified portfolio of ETFs that keeps paying nice distributions. Still don’t get why most everyone else wouldn’t want this. Oh well…

#11 earlybird on 02.11.18 at 5:30 pm

Walking to work is GOLD!! The hardest part about renting is the stigma…

#12 paul on 02.11.18 at 5:32 pm

#3 Dobermanduke on 02.11.18 at 5:11 pm

SCM,

I voted for you to be allowed to come back on a limited basis. I want to change my mind and say goodbye. Nothing positive ever comes from your posts. Even when you are asking for yet another favour from Garth you can’t do it in a civil manner.

Take a hike
—————————————————————–
He/She is trying humor, now that’s funny!

#13 Long Branch Apprentice on 02.11.18 at 5:34 pm

#144 Smoking Man on 02.10.18 at 11:41 am
#127 Niagara Region on 02.10.18 at 10:37 am
re: #83 Smoking Man

In the past few days, some respondents complained that women aren’t interested in finance and make poor financial decisions. In response, a couple of folks pointed out that this website, where women could learn more about finance, is often too male a space because a few folks make unnecessary derogatory remarks about women. I agreed. In response, Crowdedelevatorfartz (#62) writes “scroll scroll….scroll past them” and some comments “are an itch I have to scratch.” Smoking Man (#83) writes “Suck it up. And learn something…Stop being a frightened chick.”

Think of it this way, if every 8th or 10th post contained a pejorative, unnecessary racist remark about black folks, and a black man reading the website pointed out that such remarks were making him and his black friends feel unwelcome on the website and that he didn’t see the point of making such gratuitous nasty remarks about black folks, would you say “scroll by these remarks” and “suck it up…stop being a frightened [insert negative word for black person here]”? Probably not. Why then should women readers have to wade through hostile, unnecessary remarks about stupid wives, greedy wives, idiotic women, women taking over the world, women having everything handed to them on a silver platter, etc., to learn more about finance? It’s completely unnecessary; it’s not cool; and it helps chase women away from this website and discourages them from improving their financial literacy.

I thank Garth and those many great respondents who post valuable information about falling RE prices (especially “For Those About to Flop”), who provide links to interesting articles, who discuss investments, and more without tossing in unnecessary negative comments about women. By doing so, you’re implicitly attempting to make this website a place where female readers can feel welcome and can learn more about investment.
…….

Look you are the one who played the chic card. Was it even necessary. Hate to brake it to you by and large woman don’t give a rat’s ass about finance or coding. It’s the nature of the best. Now the fact that you do give a shit is a great step forward for woman kind.

Think of this place as a rabid dog pound were every one is going for alpha dominance. And leave it at that. Don’t over think.

Woof Woof.
================

Wow. How about we give this guy a rest garth?

#14 Screwed Canadian Millenial on 02.11.18 at 5:34 pm

#3 Dobermanduke on 02.11.18 at 5:11 pm

Oh cmon that’s not nice. There’s nothing wrong with a little humor on Sunday.

Ok you want a quality post? Here goes.

I think Statscan data is seriously flawed and they are doing a terrible job of seasonally adjusting the job report data.

Look at the last 3 job reports.

Canada goes on ‘hiring splurge’ in November with 79,500 new jobs
https://www.bnn.ca/canadian-economy-adds-79-500-jobs-in-november-1.931528

78,600 jobs were added in December: StatsCan | CTV News
https://www.ctvnews.ca/business/unemployment-falls-to-lowest-in-40-years-statscan-1.3746827

Canadian economy lost 88,000 jobs in January
http://www.cbc.ca/news/business/canada-employment-january-1.4527905

There’s no way the economy is fluctuating this wildly. I think it’s pretty clear that Statscan did a terrible job of seasonally adjusting the obvious Christmas hiring months of Nov and Dec, which made it look like massive gains. And then January was obviously a correction. The data wasn’t smoothed out properly which is the whole point of seasonally adjusting the data. People are focusing way too much on 1 month’s job report.

Did the Evil Robot from Alberta leave anyone behind at Statscan after all those savage cuts or is it just trained monkey on typewriters?

Anyways, check out this chart from Bloomberg. You can see the job losses were in non minimum wage categories.

https://www.bloomberg.com/news/articles/2018-02-09/blame-ontario-minimum-wage-hike-for-canada-job-plunge-or-not

And like I said, Quebec supposedly lost 31,000 jobs and they didn’t even have a min wage hike.

There goes my 2 posts.

Sorry Dobermanduke, no takesies backsies on yes votes.

#15 Andrewski on 02.11.18 at 5:36 pm

Interesting read: The Wealthy Renter. How To Choose Housing That Will Make You Rich. By Alex Avery.

#16 Millenial on 02.11.18 at 5:36 pm

Hey Garth,

Can you explain why US interbank loans in January crashed to the lowest in recorded history?

https://fred.stlouisfed.org/series/IBLACBW027NBOG

#17 technical analysis? on 02.11.18 at 5:38 pm

your problem is interest rates and the US 10 year rate. it’s going to 4% this year and stocks are going to suffer. the DOW/SP/NASDAQ will all see a greater than 20% correction by May.

yes, in the long run, it doesn’t matter. in the short run, it’s a traders paradise.

#18 Andrew Woburn on 02.11.18 at 5:38 pm

#37 Sideshow Rob on 02.10.18 at 9:57 pm
Feast your eyes on this chart by the St Louis fed.

https://fred.stlouisfed.org/series/IBLACBW027NBOG

Set it to 1 year.
Virtually all inter-bank lending in the US stopped last week. This implies that someone big blew up and who it is has not been made public. Hang on to something solid. Stuff is about to get real.
=====================

I agree this is remarkable and has never happened before so the “slowdown over the holidays” theory doesn’t work.

It would be really worrisome if it represented a liquidity crisis. However, to the best of my knowledge, US banks don’t make unsecured overnight loans to each other since the financial crisis. Instead they pledge high quality securities against the loan sort of like a pawnshop. The lending bank is taking little risk. Also the endless coffers of the Fed are open for member banks to rely on so they are unlikely to run dry. I believe Fed credit just costs a little more.

I can’t pretend to know the cause but one speculation is that the banks are trying to cope with the restructuring precipitated by tax reform. On Jan 2, the captains of US industry walked in to a tax structure that is radically different from that prevailed at Christmas and no professional advisers have the answers yet. I have no specific information that says that the prevailing structure of interbank lending suddenly became tax inefficient, but the timing works. Also it’s hard to imagine the financial press not being all over this already if there were actual financial risks involved.

#19 Liberal Canadian Millennial on 02.11.18 at 5:50 pm

Commodities are down. The only reason why oil prices went from US$45 in Spring of 2017 to US$70 a few weeks ago was because OPEC, mainly run by religious fundamentalist countries with poor human rights for women and gays, artificially reduced the supply of oil to create an artificial shortage.

Today’s commodity prices:
Name Month Last Chg. %
Gold Apr 18 1,318.10 -0.07%
Crude Oil WTI Mar 18 59.06 -3.42%
Silver Mar 18 16.310 -0.19%
Natural Gas Mar 18 2.610 -3.23%

#20 Bezengy on 02.11.18 at 5:55 pm

How many of us our content? Well I think women have had enough, and the indigenous community has had it too, taxpayers won’t take it anymore, neither will our veterans, the millennials want a fair shake, investors and small business owners are fed up, Alberta is demanding change, and seniors are not happy one little bit. Good for you Alyssa.

#21 Welcome to Slurrey on 02.11.18 at 5:57 pm

Someone please explain why leasing a new car is better than purchasing a used car thats only a year old ( where the previous owner has taken the loss of the initial depreciation) …..

#22 Spock on 02.11.18 at 5:58 pm

#3 Dobermanduke on 02.11.18 at 5:11 pm SCM,
:

If this is allowed and it works – can we do the same for T2.

SCM: Maybe GT has a limit on number of characters for you. Like Twitter used to.

—————————————————

#3 Dobermanduke on 02.11.18 at 5:11 pm
SCM,

I voted for you to be allowed to come back on a limited basis. I want to change my mind and say goodbye. Nothing positive ever comes from your posts. Even when you are asking for yet another favour from Garth you can’t do it in a civil manner.

Take a hike

#23 Linda on 02.11.18 at 5:58 pm

Congrats Alyssa on building financial freedom. Plus, you can still buy at some point down the road, if & when it suits. Because the thing about having plenty of financial assets is that when you don’t need the money, those who lend money want you as a client.

#24 Muttley O'Toole on 02.11.18 at 6:05 pm

#4 – Terry
I’m with you – I have long thought the spiraling debt of the consumer class, and every other class including nations, is a total disaster-in-waiting.
Come judgement day, and it will come, what happens?
Does everyone go back to zero and start again?
If so then everyone with cash & savings,including bonds, shares,mortgage-free housing, will also take a hit.
Why? – because society will be turned on its head.
That’s my pessimistic outlook but, hey let’s all drink, be merry and carry on because tomorrow we are pooched and even “The Donald” cannot save us.
Do you think my outlook is slightly over the top?

#25 Russ on 02.11.18 at 6:06 pm

Screwed Canadian Millenial on 02.11.18 at 5:05 pm

You are over your limit – Garth

——————

Komissar Turner, I thought my free speech allotment was centrally planned at 2 posts per thread?

I don’t believe I was over the limit. Please advise.

Is there any way to petition your Ministry of Truth for a quota increase to 5 posts per thread? It has been a wonderful harvest this season, after all.

Thank you Comrade.
====================

That’s one. Use your second post wisely.

Do’oh! Too late.

Cheers, R

#26 Long Branch Apprentice on 02.11.18 at 6:09 pm

#13 Long Branch Apprentice

Fake poster! Come up with your own name man!

#27 conan on 02.11.18 at 6:09 pm

I know quite a few people who made money on their SUV. The car manufacturers did not price some of their models correctly. As a result, they held their value.

One normally loses selling a 3 year old car back to the dealers. To win with them means a private sale would have netted you more.

https://www.youtube.com/watch?v=MP06gvFWW64

#28 Howard on 02.11.18 at 6:17 pm

I agree that leasing a NEW car is definitely wiser than buying a NEW car.

But buying a recently used car (2-3 years old) is better than leasing a new car. Doesn’t a good chunk of the depreciation occur the moment a new car is driven off the lot by its owner?

Some brands, Honda in particular, hold their value well even after 7-8 years.

#29 Howard on 02.11.18 at 6:23 pm

Oil looks to be starting a downswing and our lovely Western Canadian Select will be sub-$30. Thanks T2!

#30 IHCTD9 on 02.11.18 at 6:27 pm

“My husband and I have come to truly believe that it doesn’t matter if the landlords are funding their retirement off our rent or if the dealership is making a premium off our payments. Because at the end of the day, it’s all about OUR cash flow (and ultimately savings).”
————-

A is wise beyond her years, nice to see perspective properly applied.

300K invested at 30? You two are GOLDEN.

#31 Howard on 02.11.18 at 6:31 pm

Patrick Brown’s counter begins in earnest. Claims one of the accusers was in a relationship with one of the CTV reporters who broke the story. The PCs would probably rather he shut up but I doubt he cares about the election at this point.

http://www.cbc.ca/beta/news/canada/toronto/former-pc-ontario-leader-patrick-brown-1.4530770

#32 BC_Doc on 02.11.18 at 6:31 pm

Bought the minivan back in 2005 new. Just about to buy some new tires and run it another five years before I replace it. SUV I bought new in 2009. Love that thing. Not sure I’ll ever replace it. Here’s to thrifty living.

Well done Alyssa— you’ve made some great financial choices!

#33 Zapstrap on 02.11.18 at 6:34 pm

Can I rent my posts to SCM somehow?

#34 IHCTD9 on 02.11.18 at 6:41 pm

#2 morrey on 02.11.18 at 5:09 pm
I agree with most of what “A” has said.

but when it comes to cars. I have always bought used. Paid cash, and kept the car over 10-12 years. And in most cases get to trade in the oldie for 2000k towards the next car. This in 90% of cases is way cheaper than leasing. Ask the Oracle of Omaha.
———-

Yep. No brainer if you can work on them yourself. I just sent my 19 year old SAAB to scrap steel Valhalla after driving it for 5 years. I bought it non running for 1300.00 with only 137K on the clock, it was near mint. A 99.00 generic Walbro fuel pump I adapted into the stock canister got it running again (GM wanted $700.00 for a replacement – no thanks).

That’s a record for me, $25.00 month to own a car. I took about 600.00 worth of parts off it too, if they sell for asking price, monthly cost will be down to 13.00.

#35 Smoking Man on 02.11.18 at 6:50 pm

#26 Long Branch Apprentice on 02.11.18 at 6:09 pm
#13 Long Branch Apprentice

Fake poster! Come up with your own name man!.
….
100% knew it weren’t you. james at it again. Radical liberals that despise free speech.

#36 Bytor the Snow Dog on 02.11.18 at 6:51 pm

Alyssa sounds like a smart woman.

#37 Michael on 02.11.18 at 6:52 pm

Dearest screwed entitled millennial,

While I can appreciate the cheekyness of your post, this forum is not of public domain.

I see it akin to Mr. Turner inviting us to his parlor for a drink and a chat every evening, asking for nothing in return.

So, as your mom keeps trying to tell you “My house, my rules”

Begrudgingly,
A millennial doing his best regardless of the circumstances

#38 Ustabe on 02.11.18 at 6:53 pm

I’m content and I don’t even need massive infusions of Metamucil to maintain that.

43rd anniversary coming up soon, today (with a little help from the propane heater) we had clams and garlic toast for lunch on the deck under clear, bright skies.

Adult children coming over tomorrow for Family Day so I’ll smoke some ribs.

All of you all can become content as well…just stop the divisive hating, get back to historical basics politically, listen to others, leave debris behind…and do all that without rancor or or tribalism.

Or vote in a low level hash dealer for OPC leader and do it all over again, your choice.

#39 IHCTD9 on 02.11.18 at 6:56 pm

#28 Howard on 02.11.18 at 6:17 pm
I agree that leasing a NEW car is definitely wiser than buying a NEW car.

But buying a recently used car (2-3 years old) is better than leasing a new car. Doesn’t a good chunk of the depreciation occur the moment a new car is driven off the lot by its owner?

Some brands, Honda in particular, hold their value well even after 7-8 years.
———-

We usually buy 2-4 years old for the wife’s car. Nearly half price if mileage is high for the year, but car still looks and drives like new.

Her last one was a Civic, it started burning oil like a diesel at about 280k. Careful with those Honda’s, they’re not making them like they used to. Before the Honda, she had a Hyundai that went to 365k, no oil burning, same spark plugs as when we bought it, original clutch too! It died due to rust. Great car except for the body.

We’re trying a Mazda this time. 4 years old, 90k, $8000.00 bones.

#40 IHCTD9 on 02.11.18 at 7:10 pm

#11 earlybird on 02.11.18 at 5:30 pm
Walking to work is GOLD!! The hardest part about renting is the stigma…
——

That is were A and her hubby have won the game, not giving a crap what others think. When they retire early with a seven figure portfolio, will their friends be so quick to cast stones? That’s when the realization comes that maybe A+Hubs we’re right all along.

“Living well is the best revenge”

“(S)He who laughs last, laughs best”

#41 theoryAndPractice on 02.11.18 at 7:14 pm

#9 Boonerator on 02.11.18 at 5:26 pm
There are other parameters as well for owning/leasing a car, just wanted to share with others;

– fuel economy
– reliability
– maintenance
– depreciation

I’ve done the homework 6 years ago, switched to Diesel car, consumed 1 tank for same mileage instead of 4 per month by dumping inefficient v6.

Diesel one required oil changes at every ~15,000 km vs the v6 gasoline one would require every ~5,000 km.

Repairs : None so far , close to 200K Km.

Lease: The advantage if anything is wrong with the car, then you can back out at the end of the term, the car might be leaving the production line while a soccer or a hockey game is played. if you own upfront, you are alone, try to return it… When leased, responsible for the taxes related to lease term.

…But with a Diesel car, you will not be able to accelerate in 4.7 seconds from 0 to 150 km/h speed …

If that matters forget all above…

#42 NoName on 02.11.18 at 7:15 pm

What I don’t understand is why trade almost half paid car for lease, assuming 3 yrs left on loan, only advantage to lease that I can come up with is that lease is 100% deductible against business income, while car payments as business deduction are bit confusing for me.
I drove two cars for 2yrs that I have no payments for, just gas insurance and oli changes doesn’t get cheaper than that, unless you need lease to offset taxes.

https://www.google.ca/amp/s/turbotax.intuit.ca/tips/should-i-buy-or-lease-my-new-business-vehicle-7668/amp

#43 Tony on 02.11.18 at 7:24 pm

We’ll see if they let it fall 20 percent intraday from the January 26th high and then the biggest rally of all time will ensue to the 4:00pm close that day and the after hours market. I prefer three ring circuses.

Who is ‘they’? – Garth

#44 I am not worried on 02.11.18 at 7:27 pm

My wife and I constitute what is considered a high net worth family which surprised me as our net worth is in the low seven figures. We have no debts, modest spending habits, and our portfolio is growing faster than we have chosen to spend it. Life as a retired couple is good as I type this from Florida, sipping a good red wine that was unbelievably cheap to buy.

Occasionally, I worry about what will happen if the chickens come home to roost, meaning that there is some massive default on government debt, and savers/investors like us get swallowed up by some debt monster, rising from the abyss surrounded by its minions of debt-enslaved house harpies. And then I think, no, I really won’t have a problem even if said monster goes on the hunt.

Why? There are too few of us. You could feed us all to the debt monster and it would not satiate his appetite. It is all over but the crying. Yes, the Kaiju-like tax monsters may unleash a plague of new taxes, but really, it will likely be too little too late. And, just looking at the numbers, there simply isn’t enough money to be had from what is a very small group really.

No, the real monster, much larger than any additional taxes we are inflicted with will be the unleashing of user fees, service cutbacks, and reduced program funding that will, all taken together, spark a series of battles for government resources, resulting in a see-saw struggle between a steadily-deteriorating block of voting boomers and an increasingly savvy group of their moistened (but not chastened) progeny, with some assistance from the Gen-X cohort, small as it is. We all know how that struggle is going to end. The wrinklies will lose.

#45 Interstellar Old Yeller on 02.11.18 at 7:35 pm

At last, a good-news letter! Nice going, Alyssa and hubs. We like being low-life renters (and someday, rentiers) too.

#46 Buying vs. Leasing a Car on 02.11.18 at 7:41 pm

I have noticed that Garth’s advice has been consistent on this topic and I have been perplexed at the cognitive dissonance in his line of thinking in this area compared to his sound advice regarding financial balance. I think the root of the problem is that he does not make a distinction between “rapidly depreciating” and “slowly depreciating” assets, which makes a big difference.

Over my several decades of owning quality luxurious cars (always two concurrently for myself and my wife) it has been an empirical constant that it is so much cheaper and consequently highly wealth creating to buy cash a quality one owner low kms slightly used car with full service history compared to leasing a car.

If you are really worried about “expensive repairs” down the road and do not mind to rob yourself of some wealth, there are now many excellent certified pro-owned programs with 100% warranty for many years. Through these car manufacturer managed programs, you can buy almost a new car with 20-70k kms for 1/3 to 2/3 of the price of a new car. Such a car will often be 100% unrecognizable from a new one.

But in my experience, if you buy an even “older” car (i.e. 4-5 yrs old) with more kms (i.e. up to 100k), which has a clear history of being properly maintained, statistically speaking chances of a major repair bill are extremely low. Yes, it may not have the latest “face lift” that only dedicated car spotters can really notice anyway, but who cares? And we are not talking Kias here, but luxury SUV vehicles produced by the very best car companies.

In my case, I have always bought my cars not even certified having as a rule that I never pay more than 1/4 of the original new car price. My self-created “lease” costs due to the opportunity cost of the cash and the ongoing moderate depreciation have been about 25% of the lease for a comparable vehicle, albeit slightly newer. I always select among large luxury SUVs for myself and for my wife. They also typically come with a lot of fully depreciated resale value wise, yet also fully usable functionality wise, freebies (e.g., set of winter tires, towing set up, premium sound, DVDs for kids, roof racks, upgraded mats, satellite radio) for which you need to pay dearly when you buy / lease a new car. And as an additional bonus the tax is obviously 1/4 of what the first owner paid. Have I mentioned a lower insurance bill?

Then I just change oil and have a trusted mechanic continue to perform the manufacturer’s recommended maintenance schedule at a fraction of the cost of maintenance done at an official dealership. I have never had a “major” mechanical problem over these decades. Family wealth creation wise, we are now talking six figure numbers all while enjoying luxury wheels.

Does anybody have a different view on this?

#47 bubu on 02.11.18 at 7:41 pm

Forget about housing going down…. same as the market, if the prices go down a bit, they will recover…. do you know the banks don’t change your monthly payment if you have a variable rate? no, they will add few more months for the total amortization… if the rates will go up this year more, you will have a longer mortgage but no issues to pay your mortgage….

#48 sleepingdragon on 02.11.18 at 7:49 pm

Assuming that the Fed continues with its balance sheet reduction we really don’t know what kind of financial accidents might occur. What we do know is stock market valuations are presently influenced by financial leverage and only loosely linked to economic reality.
It might be a good time to be cautious rather than greedy. Record levels of debt have caused a bubble across many asset classes. Low interest, easy money has only boosted the flight to reckless investments. Passive investing has become the norm with little regard to consequences.
Where will the markets be six months from now? I will be content to sit back and see.

#49 Screwed Canadian Millenial on 02.11.18 at 7:52 pm

Borrowing on credit for this one, from the 2 posts I did not post yesterday on guest blogger Doug Rowat’s thread. Let’s see if my credit is any good.

#37 Michael on 02.11.18 at 6:52 pm
So, as your mom keeps trying to tell you “My house, my rules”

—-

Oh Michael. If only. I took Garth’s and many boomers advice and let me tell you: PAYING RENT SUCKS! I wish I could go back to mama’s basement. That’s the ultimate financial liberation. With all the money I could save, imagine the diversified and balanced portfolio I could have right now, full of bonds and equities plummeting in value.

Garth is witty, no doubt about it. But let’s be real, there’s nothing “funky” about Guelph. Austin, Texas is funky. Portland, Oregon is funky. Venice Beach is funky. Guelph is just another Grade A Canadian sh*thole. One of many. $1900 a month to rent in Guelph! This is insanity!

That’s all for today.

#50 Timmy on 02.11.18 at 7:59 pm

“Stocks got too expensive” Not considering that all major economies are growing and unemployment in US is at record lows and we have record corporate profits. If they “got too expensive” then surely there is a lot more downside. I think this was triggered by rising rates

#51 Philly on 02.11.18 at 8:00 pm

#44 I am not worried

Good for you!!! I’m curious your age and net worth?
I’m 46 and have almost 1.6
Thank you Phil

#52 Long Branch Apprentice on 02.11.18 at 8:02 pm

#35 Smoking Man

Thanks man,

Smoking Person just doesn’t have the same ring.

#53 NoName on 02.11.18 at 8:09 pm

#41 theoryAndPractice on 02.11.18 at 7:14 pm

5k oil change is just money grab, evryone knows that, synthetic oil city driving will be ok up to 12k, and 16-18k hwy driving V6 or i4 engine doesn’t matter.

I don’t know where that 5k oil change came about, but what I red so far goes back to 80s and turbo engines, and mineral oil and so called engine black death. On 00 accord I was changing oil every 8k gave car away and dude drove another 110k over my 330k. 10 civic oil chance every 12-14k depend on time of the year, on winter oil would time out faster, what makes sense. 02 pumpfinder oil changed once a year before winter car was driven 5-7k a year.

Now one car i4 turbo recommend oil change 16k and second v6 recommend oil change 16k.
Most of modern cars now days recommend oil change is 16k. Dude at work swore by shell rottella full synthetic. I used OEM filters and quakerstate full synthetic (one in see through container).

Back to filters, now days Honda recommend one filter two oil changes but Honda filters have twice as many “finns” comparing to primium filters.

#54 Doug t on 02.11.18 at 8:10 pm

Life is funny – I struggle daily with anxiety and depression – I am fortunate in having no mortgage and an ample nest egg but life still is a struggle daily – money, success, balanced portfolio don’t bring contentment

RATM

#55 Entrepreneur on 02.11.18 at 8:13 pm

I am worried too that so many are in debt. But that is how the system wants it to be.

Wonder if the revolver on the Saskatchewan farm had special permission to be carried outside the house and loaded? Revolvers in Canada have restrictions. And maybe this could be the mistrial?

Watched the end of Passionate Eye on Airbnb and people in other places getting upset that owners are renting and not claiming. Have to watch from the beginning. Thankfully the NDP of BC is bringing in a 11% tax and maybe this will cool the housing down.

#56 theoryAndPractice on 02.11.18 at 8:15 pm

#21 Welcome to Slurrey on 02.11.18 at 5:57 pm
“Someone please explain why leasing a new car is better than purchasing a used car thats only a year old ( where the previous owner has taken the loss of the initial depreciation) …..”
—————————————————-

if the car is really “what is presented to you” and taken care of properly, you may be right, else you are taking extreme risk after a year the car still will be pricey after discounts…
I’d question why the owner wants to take a loss and wants to make you happy after a year ?

#57 acdel on 02.11.18 at 8:20 pm

Breathe, just breathe, life is one makes it to be, enjoy and appreciate everything!

Excellent Post!

#58 duck and cover on 02.11.18 at 8:20 pm

All atomic and nuclear bomb film footage is fake.

#59 For those about to flop... on 02.11.18 at 8:22 pm

Well, I put up list the other day of January 2018 sales trying to get a realtor to fill in some of the gaps.No cigar.

One thing I have noticed since is all the other sales that happened in my Pink Snow folder were well below 2 million.

This one below on Coventry was the exception and I still am awaiting the official sale number but they were asking less than paid and so even the hit just for expenses would be substantial.

I just went back and checked what happened in December 2017 and the bulk of the sales and as it turned out losses were in the 1-2 million bracket.

I had one sale in the 3-4 bracket who made just enough to be considered a Pink Draw.

I had the biggest sale in the last little while get 4.36 ,the same number they paid for it ,and so they lost roughly 300k after expenses and a little for opportunities lost.

Anyway, out of the hundred or so houses I have over 2 million trying to get their money back these guys were the lucky ones.

Or were they…

M43BC

Sold on January 20 2018

4260 Coventry Drive, Richmond paid 2.83 ass 2.58 asking 2.79

Feb 21:$3,180,000
Aug 23: $3,060,000
Change: – 120000.00 -4%

https://www.zolo.ca/richmond-real-estate/4260-coventry-drive

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1WExSQQ==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#60 Samour on 02.11.18 at 8:30 pm

Actually my portfolio is up like 1-2% from last month :)

But yeah last year was insane 20-30% increase overall

#61 WIN not Lose on 02.11.18 at 8:36 pm

This post addresses one aspect of the car buying, leasing issue.

A number of years ago, my lovely bride decided to start her own business.
She enrolled in a Community Futures program which assists people in starting a business while on UE (pogey).

She worked with a number of business advisors provided by Community Futures.

One advisor, a former Revenue Canada Auditor gave us some invaluable advice.

He suggested that when we personally buy a new (or used) vehicle, we lease it to ourselves at fair market value.

We, the purchase/owner, lease it to our business (home based or otherwise). The lease then becomes a business expense to the business and non-taxable income to the vehicle owner.

Eg. Buy a new or used vehicle for say $10,000 (or $20,000). Lease it to your business for $350 per month for 3 years (Fair market value).

The $350 is a business expense to your business AND tax-free income to you, the owner of the vehicle. QED.

We have been using this strategy for the last 9 (nine) years.

No problems from Rev Canada.

Your mileage may vary.

#62 @#39 Team Honda on 02.11.18 at 8:37 pm

Hi,
Just a comment, I enjoy my Honda Vehicle. Great ride and longevity. Great saving on fuel to put into ETFs.

#63 Pulp Faction on 02.11.18 at 8:47 pm

I am debt free thanks to you, and very happy with very little.
Unlike everybody I know, I didn’t get sucked into the real estate market and end up with a prison sentence of a mortgage. I’m really happy renting.
So, thanks buddy. You’re my superhero.

#64 Sam the Sham on 02.11.18 at 8:47 pm

“My husband and I have come to truly believe that it doesn’t matter if the landlords are funding their retirement off our rent or if the dealership is making a premium off our payments.”

Alyssa, I love people like you with this kind of mentality. You and the others are going to make me rich beyond my wildest dreams. I wish I could hug and kiss you, except it would be considered sexual harassment in this day and age.

An evil old landlord/rentier

#65 mark on 02.11.18 at 8:52 pm

I give my posts to S C M.

#66 IsleOfVanMan on 02.11.18 at 9:02 pm

IHCTD9 -what model Saab were you driving ?? Sounds like we’re living in a parallel universe… I’m driving a 2000 Viggen which has been rock solid… Only real repair has been replacing brake pads and rotors over 5 years of ownership.

#67 tbone on 02.11.18 at 9:06 pm

I currently have a lexus that stickered for 71k .
Bought it one year old from a dealer with all service records available for viewing.

Traded in my current car that I owned against it, and ended up buying it for 31 k plus trade in, plus tax .

Three years left on warranty as the higher end cars come with 4 year warranty .

One year olds usually depreciate around 30 percent .

I have bought several cars this way . I don’t lease .

The first car is the most expensive , but when you use it
to purchase the next one , the amount is offset by the trade in value and you pay tax on the difference , not the price of the newer car.

I bought a lexus GS for the price of a 4 cylinder camry .

#68 Paul on 02.11.18 at 9:15 pm

#43 Tony on 02.11.18 at 7:24 pm
We’ll see if they let it fall 20 percent intraday from the January 26th high and then the biggest rally of all time will ensue to the 4:00pm close that day and the after hours market. I prefer three ring circuses.

Who is ‘they’? – Garth
————————————————————————————————
Garth you must not be a great financial advisor if you need to ask who ‘they’ are. You know they.

#69 Leo Trollstoy on 02.11.18 at 9:16 pm

How many part timer workers are getting paid minimum wage… prolly a lot

“…the data suggest the greater proportion of employees with hourly wages at or below C$14 in December, the greater the declines in January. Wholesale and retail trade, where about 40 percent of employees are at or below the minimum wage, lost 15,500 jobs on the month, the most in more than a year”

Thx Bloomberg

I vote for another minimum wage hike… let’s speed up the culling process

#70 Leo Trollstoy on 02.11.18 at 9:17 pm

Hey Smoking Man this is for u!

U may have read it. Or not. It was quickly deleted

http://archive.is/Gnukf

For Smokies eyes only

Others will go blind pls avoid

#71 Leo Trollstoy on 02.11.18 at 9:18 pm

Alyssa is one of the few millenials w a brain

Rare is rare

#72 Smoking Man on 02.11.18 at 9:21 pm

#49 Screwed Canadian Millenial on 02.11.18 at 7:52 pm
Borrowing on credit for this one, from the 2 posts I did not post yesterday on guest blogger Doug Rowat’s thread. Let’s see if my credit is any good.

#37 Michael on 02.11.18 at 6:52 pm
So, as your mom keeps trying to tell you “My house, my rules”

—-

Oh Michael. If only. I took Garth’s and many boomers advice and let me tell you: PAYING RENT SUCKS! I wish I could go back to mama’s basement. That’s the ultimate financial liberation. With all the money I could save, imagine the diversified and balanced portfolio I could have right now, full of bonds and equities plummeting in value.

Garth is witty, no doubt about it. But let’s be real, there’s nothing “funky” about Guelph. Austin, Texas is funky. Portland, Oregon is funky. Venice Beach is funky. Guelph is just another Grade A Canadian sh*thole. One of many. $1900 a month to rent in Guelph! This is insanity!

That’s all for today.
…….

I was at Venice beach today. Huh how do I put this. Zombie land. Freak show. Weirdo pauluza. Surprisingly I fit in pretty good.

Now back to you kid. Do you know what the underlying emotion that’s driving your crusade for social justice is.

It’s not kindness or a sense of doing right. It’s total jealousy and hatred toward people more successful than you. It ozzes out of your perfectly structured sentences.

Now if your under 25 and feel this way, well that’s natural. Right of passage but you take this baggage into your 30s your doomed for life. Socialism has never worked ever. It leads to death and despare.

You are living under the possible system ever invented that has lifted more people out of poverty than anything else. It’s called capitalism. It’s not perfect but it’s best one around.

The reason you are truly miserable. No real men left in your generation. That’s got suck. A generation of frightened salad eaters.

#73 HanMan3000 on 02.11.18 at 9:22 pm

One of my favourite posts yet, very valuable lessons can be taken from this story. Alyssa’s confidence to make choices that are great for her situation but go against social norms shows incredible self-awareness and independence. Well done.

#74 akashic record on 02.11.18 at 9:25 pm

#37 Michael on 02.11.18 at 6:52 pm

Dearest screwed entitled millennial,

While I can appreciate the cheekyness of your post, this forum is not of public domain.

I see it akin to Mr. Turner inviting us to his parlor for a drink and a chat every evening, asking for nothing in return.

===

You are such a suck up, Michael.

Blogs with comment section function as public domain, regardless of ownership, in exchange for user content.

Where is that drink?

#75 C7.R on 02.11.18 at 9:31 pm

Most of us have heard how to do it… so just start doing it already and enjoy a content life.

“Live below your means, and do it for a long time”.

If you want to buy a house or condo, then buy something modest you can easily afford. Like nice cars, buy them used with cash. If you can’t do this, you are not at your means yet, lower the bar. Then lower it once more notch to “below” it. Your future self with thank you and will assure you all that fancy crap won’t bring happiness, relationships do.

This approach as blessed our family. We bought modest 3 bdrm house, used the first 5 working years as young couple to build an investment portfolio. We had dual income for 4 years, then went 1 income and remain so today. The following 5 years was war on the mortgage… our variable rate was < 2% which exposed the principle to our brutal attacks. At the end of year 10, no mortgage, no debts, 2 used cars, and on the good side of Garth's Rule of 90. This possible in the GTA burbs, with a 5-figure income, for family of 4 + dog. Its all about perspective and values, spend money what what is actually important to you, thrift on the rest. And while you are at it, give a 10th away. This is the best part. Find fun and meaningful ways to give away your money, it will put smiles on your face. You will be a different person. You will impact those around you and you will be content.

Cheers

#76 MF on 02.11.18 at 9:52 pm

#48 sleepingdragon on 02.11.18 at 7:49 pm

-I completely agree.

What the debt doesn’t matter now because economies are “growing” again apparently?

I also believe the central banks quietly and slowly trying to unload their bloated balance sheets is what is causing yields to increase. How can such a huge player engaging in such a practice not have large consequences? The US FED was buying something hilarious like 90 billion of bonds per month at some point, and they did it for years.

MF

#77 MF on 02.11.18 at 9:57 pm

#43 Tony on 02.11.18 at 7:24 pm
We’ll see if they let it fall 20 percent intraday from the January 26th high and then the biggest rally of all time will ensue to the 4:00pm close that day and the after hours market. I prefer three ring circuses.

Who is ‘they’? – Garth

Lol I had to laugh at this^

I’m not a conspiracy theorist by any means, but I guess after years of “stimulus” being injected into the markets, maybe he means central banks aka PPT (plunge protection team)?

Full disclosure: I think the market will tank now that the stimulus is being removed and yields are being allowed to rise again (I think).

MF

#78 For those about to flop... on 02.11.18 at 9:58 pm

Canadian birth rate will spike November this year ,forcing The Canadian Government ( formerly The Harper Government)to reassess immigration quotas.

Totally normal for this to happen every seven years.

This phenomenon always occurs when Valentine’s Day falls on hump day…

M43BC

#79 Blessed_Canadian_Millennial on 02.11.18 at 10:01 pm

#72 Smoking Man on 02.11.18 at 9:21 pm
#49 Screwed Canadian Millenial on 02.11.18 at 7:52 pm

Oh Michael. If only. I took Garth’s and many boomers advice and let me tell you: PAYING RENT SUCKS! I wish I could go back to mama’s basement. That’s the ultimate financial liberation. With all the money I could save, imagine the diversified and balanced portfolio I could have right now, full of bonds and equities plummeting in value.

Garth is witty, no doubt about it. But let’s be real, there’s nothing “funky” about Guelph. Austin, Texas is funky. Portland, Oregon is funky. Venice Beach is funky. Guelph is just another Grade A Canadian sh*thole. One of many. $1900 a month to rent in Guelph! This is insanity!

That’s all for today.
…….

I was at Venice beach today. Huh how do I put this. Zombie land. Freak show. Weirdo pauluza. Surprisingly I fit in pretty good.

Now back to you kid. Do you know what the underlying emotion that’s driving your crusade for social justice is.

It’s not kindness or a sense of doing right. It’s total jealousy and hatred toward people more successful than you. It ozzes out of your perfectly structured sentences.

Now if your under 25 and feel this way, well that’s natural. Right of passage but you take this baggage into your 30s your doomed for life. Socialism has never worked ever. It leads to death and despare.

You are living under the possible system ever invented that has lifted more people out of poverty than anything else. It’s called capitalism. It’s not perfect but it’s best one around.

The reason you are truly miserable. No real men left in your generation. That’s got suck. A generation of frightened salad eaters.

———–

Very well said, Mr. SM. Very well said. Despite the age difference, you and I would get along really well.

M35AB

#80 Blessed_Canadian_Millennial on 02.11.18 at 10:03 pm

#30 IHCTD9 on 02.11.18 at 6:27 pm
“My husband and I have come to truly believe that it doesn’t matter if the landlords are funding their retirement off our rent or if the dealership is making a premium off our payments. Because at the end of the day, it’s all about OUR cash flow (and ultimately savings).”
————-

A is wise beyond her years, nice to see perspective properly applied.

300K invested at 30? You two are GOLDEN.

————

No kidding. Assuming ~7% annual return, your investment should double every 10 years.

This means that even if they STOP contributing a single penny, they will have $600K by the time they’re 40, $1.2M by the time they’re 50, and a whopping $2.4M when they hit 60.

This obviously assumes that all their investments are in tax-sheltered accounts.

Good job!

#81 allperils on 02.11.18 at 10:18 pm

I’ve read through some of your posts and many of the comments. I can tell most people still do not understand what’s going on.

IMO, two things will cause Canada’s real estate bubble to deflate significantly from it’s 2017 highs at which point, we will all see who’s swimming without their clothes.

1. Interest Rates. Ultra low-interest rates and relaxed lending enables buyers. This will eventually taper off once rates pass 2-3%, because when the Fed rates are 2-3%, the bank mortgage rates are probably closer to 5-6%. Those people who thought they could afford those monthly payments, won’t be able to. Thus triggering fear, and thus a major cut in spending…

2. Employment. As of December 2017, unemployment in Canada and the US reached it’s lowest. Most people think this is something to cheer about. Unfortunately, all you need to do is look at unemployment graphs. They will show you that unemployment does not hang around the bottom of the curve too long. A year or two at most. Then it ramps up relatively quickly thereafter. It’s simple, consumers overspend, business over produce during expansionary periods. Once unemployment rises, MANY people who bought houses in Vancouver and Toronto will not be able to hold on to their homes. Especially when banks are toughening up their rules during recessions.

People in their 30 to 50s should have known better than to take out loans that are beyond 3-4 times their annual salary to buy a house in Van and Tor. I’ve read some paid as much as 11 – 17 times their annual salary.

January’s unemployment rose for Canada. It could very well rise again in the months to come. Unemployment is the SOLE indicator that you need to track in order to see when house prices will correct.

I can’t wait to see how many for sale signs will be put up when unemployment is 8 or 9%. It usually takes less then a year or two at most for this to happen.

US unemp: https://data.bls.gov/timeseries/LNS14000000
CDN unemp: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/lfss01a-eng.htm

#82 Jimner on 02.11.18 at 10:28 pm

Considering the buyers backing out of real estate deals lately, how much would you suggest as a safe down payment (%) to ask when I put my home in Vancouver for sale this spring?

#83 hoimanmill on 02.11.18 at 10:36 pm

#11 earlybird on 02.11.18 at 5:30 pm
Walking to work is GOLD!! The hardest part about renting is the stigma…”

LOL..just make sure you don;t slip and go arse over teakettle as our glorious leader Garth did with the Bandito a few years back. You are still living in Siberian conditions for 6 months per year!

#84 Rexx Rock on 02.11.18 at 10:39 pm

Some places owning a house isn’t a option.Although Victoria is very expensive,its a long term investment for retirement.You will always have a buyer when you sell because so many people want to live the dream of retiring in Victoria.Rain for 8 months a year but you get used to it.

#85 Yorkville Renter on 02.11.18 at 10:49 pm

#61 – question – how is the lease income tax free on your personal taxes?

Has anyone considered loaning your corp the $$$ to buy a car and paying yourself back?

#86 FahtCoot on 02.11.18 at 10:58 pm

#54 Doug t on 02.11.18 at 8:10 pm
Life is funny – I struggle daily with anxiety and depression – I am fortunate in having no mortgage and an ample nest egg but life still is a struggle daily – money, success, balanced portfolio don’t bring contentment

RATM

——————————————————-

Well, at least you’ve found out what doesn’t bring contentment! I joke, but I’m actually serious and have also travelled down a similar path. Life is a journey though, so keep going! You usually need to find out what doesn’t make you happy, in order to find out what truly does.

I can only assume we’re not the only ones here that thought if we got rich, we would be super happy.
Taking a quick peak around, I seriously doubt it! I literally can’t imagine living in a more materialistic world, I should just change my name to ConsumerNation (sorry costco ;)

I think money can help but if you’re not careful it can just as easily cause more problems. I view money more as an actuator. If you’re generous, it gives you more money to be generous with. If you’re greedy, it gives you more to hoard to yourself. It doesn’t CHANGE who you are, it magnifies who you are. (and pretty much everyone, inc myself doesnt need nearly as much as they think they do)

The thing with trying to find happiness within money, is that too often it’s a never ending game. It’s just never enough. What is the end goal? Some say I’ll be happy when I pay off my debts. Then they say, I’ll be happy when I can get a nice nest egg of savings. Then it’s, I’ll be happy when I get a MILLION. You get there and then you want two, then five and ten etc….Then regardless of how high we get in net worth, finally we will say we’ll all be happy and content when we retire!!.. but ask retired people if they are happy and see what you get…. Many people are actually less happy! We need purpose in this life. At least when people are working, they have a bit of a purpose.

In my opinion, this is a huge part of why much of society is where it is right now. It’s just endless greed. No concern for the future or anyone else. It’s all about how much we can get our grubby hands on. We think we NEED that new 3rd car, 5th purse, granite countertop etc..but after we get it we quickly realize the happiness and excitement was fleeting and is gone way quicker than we thought it would. In the end, everything you do for yourself goes to the grave with you. Luckily,I’ve always felt better buying something for someone else anyways….and I suspect most other do as well

I believe happiness/contentment comes from within. It’s who you are as a person and what you contribute to other people’s lives that determine the quality of your life. The more connection and love you have in your life, the better it will be…(I don’t think its a coincidence that isolation, is pretty much the worst torture in jails)
We’re a social species!

I suffered from anxiety for a long time. It is rooted in fear. You become totally drained from anticipating future events, to which you have no control. You must let go, allow life to flow, and enjoy the present. You literally have to lean into the emotion and embrace it. It’s the fear of anxiety and trying to mentally get out of that state, that makes it infinitely worse. It is like throwing kerosene onto a fire. The whole making it not okay and resisting it is what leads to panic attacks. What we resist, persists.
Even the labelling of the emotion can get us into trouble. Say one musician says he’s super excited to perform in front of an audience and the other says he has anxiety. The guy who felt excited might go out and put on a wicked show and the other might retreat back into his dressing room and not even step foot onto the stage …but physiologically they are quite similar!! They just interpret the feelings and sensations much differently and it leads to two completely different experiences and results.

Good luck Sir

#87 Yanniel on 02.11.18 at 11:03 pm

“Whether you see it or not, please know we’re out here listening and altering our courses because of your constant education and encouragement” A

I have listened and I thank you GT. I rent in the Big Smoke though. But hey, you too.

#88 Newcomer on 02.11.18 at 11:06 pm

#74 akashic record on 02.11.18 at 9:25 pm
#37 Michael on 02.11.18 at 6:52 pm

….

While I can appreciate the cheekyness of your post, this forum is not of public domain.

I see it akin to Mr. Turner inviting us to his parlor for a drink and a chat every evening, asking for nothing in return.

Blogs with comment section function as public domain, regardless of ownership, in exchange for user content.
—-

Neither of you knows what public domain means.

#89 Blackdog on 02.11.18 at 11:13 pm

@Long Branch Apprentice re: #13, “Wow. How about we give this guy a rest garth?”

Garth’s not bothered. Nothing racist or ageist in the comment. What’s the big deal?

#90 NoName on 02.11.18 at 11:28 pm

Pres play

https://youtu.be/MEIa-cByYZk

#91 FahtCoot on 02.11.18 at 11:37 pm

#72 Smoking Man on 02.11.18 at 9:21 pm

The reason you are truly miserable. No real men left in your generation. That’s got suck. A generation of frightened salad eaters.

———————————————–

haha

Seriously though, where do you think all these salad eaters came from bud?

You aren’t solely to blame …but you def share the responsibility! (not saying you, just a lot of men your age and older)

Women were treated poorly for a long time and felt powerless. What did they do to counter this? They raised children who would never treat women like that again.

The irony of course is that they would never date a man like they raised.

Progress isnt linear, the pendulum swings too far to the other side before it corrects.

High divorce rates and a boatload of remaining fractured families. No father figures around to model from.

Also IMO, “Being a man”, is not being stoic and not expressing your feelings at all. That leads to absurd communication issues and in my opinion, even physical disease.

#92 oncebittwiceshy on 02.11.18 at 11:56 pm

Sam the Sham: “Alyssa, I love people like you with this kind of mentality. You and the others are going to make me rich beyond my wildest dreams. I wish I could hug and kiss you, except it would be considered sexual harassment in this day and age.

An evil old landlord/rentier”
<<<<<<<<<<<<<<<<<<<<<<<<

An appropriate name. I'm quite sure that you would be bending over and kissing yourself goodbye if all of the Millennials shared her mentality.

Everybody renting and nobody buying means your homes are worth dirt.

Your ass backwards attempt at pumping home investment speaks volumes to the mentality of the average specuvestor.

Tick Tock.

#93 David Pylyp on 02.12.18 at 12:19 am

Here is the gold
‘ She has freedom, choices, liquidity, cash flow, wealth and time, while being free of debt and encumbrance. Is this not what youth is about? ‘

No one else matters

#94 Tccontrarian on 02.12.18 at 12:35 am

Nice to read about people who get it.

The big question is of course:
Is it a ‘healthy’ correction (within the primary bull trend), or
Is it the beginning of a deep bear market?

My sources are betting it’s the latter. We shall find out in time.

TCC

#95 Risktopia on 02.12.18 at 12:46 am

I don’t suggest trying to time the market, but market sentiment isn’t providing a very strong contrarian signal.

http://www.risktopia.com/2018/02/what-is-market-sentiment-telling.html

#96 paulo on 02.12.18 at 12:50 am

leasing VS buying a vehicle:
personally figure that unless you have the need to change
your wheels every 3 years or have the ability to write off a portion of the lease cost against your income taxes leasing is not the best way to go.
better option is low mileage used audi or benz aka former realatard ride that are plentiful, pay cash and drive it till the wheels fall off.

Stock market particularly DOW: the full effects of the US tax law changes have not even begun to effect values,mega dollars from heaven to corporations bode well for the foreseeable future 30k dow is not out of the relm of possibility,just keep a eye on the calendar a few years looking forward.when the visa bill comes in look out.
Canadian TSX: assume for a minute that trumps handlers seize his twitter (twit) account and close it, and the trumpster puts his BIZ hat back on,i think he will make certain that the NAFTA agreement gets done
when you have a economy at full employment,on a wild cat roll would you risk throwing a major monkey wrench into it and possibly blow the game? not likely
the TSX will do well in the end,and the beaver bunch will ride the reading RR of the american economy.

just saying

#97 Mark on 02.12.18 at 1:07 am

“People in their 30 to 50s should have known better than to take out loans that are beyond 3-4 times their annual salary to buy a house in Van and Tor. I’ve read some paid as much as 11 – 17 times their annual salary.”

Its even worse than that. Salaries in many occupations in Toronto are quite inflated due to the RE bubble in and of itself. In the FIRE sector, in construction, in certain types of retail that are heavily linked to home furnishings. In the public sector which has been the beneficiary of tax revenues and land sales.

So in a housing deflation, not only do you have risk premia rising on the credit, but you also have income falling or stagnating for a wide swath of these borrowers.

Its going to get very ugly as time goes on, IMHO. As there is little to take RE’s place in the Canadian economy as a source of demand. This is why I believe the Bank of Canada will be forced into cutting rates to zero and even negative to fight deflation associated with the collapsing housing bubble. The CAD$ will probably rise substantially as well, but not many people will actually have CAD$ they can spend.

#98 Lost...but not leased on 02.12.18 at 1:10 am

Vehicles:

Lease or Buy

Depends…
Some people might be considering buying an Electric Car.
Good advice would be to lease one first …see if they are reliable and dependable.

We own a 2006 Chevy Cobalt purchased in 2010. Was an EX lease vehicle. No bells and whistles(ie no power windows etc.) Keep it well maintained with a good mechanic..nothing major has gone wrong. Bought it from a dealer(= know they have to sell a sound car as opposed to Caveat Emptor with private sales.).

Also bought a 1995 Chevy PU in 2011. Was parked at side of the road, FOR SALE sign with a phone number. Called the owner up and we gave it a test drive. One could tell this was a sound truck..well maintained…but I requested my mechanic check it out. Passed with flying colours and still runs like a top…zero rust…again a bare bones model. Accident report showed 2 accidents….so excellent repairs..otherwise you would never know.

Paid around $1900….the deal are out there if you search and have reasonable expectations.

#99 Lost...but not leased on 02.12.18 at 1:23 am

Re: Alyssa

Evidence indicates she either:
(i)doesn’t exist or else
(ii) from Western Canada ie BC.

People actually from Ontario tend to mention Maple Leafs at least once in every sentence, and continually refer to obscure towns that most people never heard of nor do they care .

Mentioning Swiss Chalet every other sentence is another warning sign.

She seems very mature, intelligent, collected, other sure signs.

#100 n1tro on 02.12.18 at 1:40 am

#21 Welcome to Slurrey on 02.11.18 at 5:57 pm
Someone please explain why leasing a new car is better than purchasing a used car thats only a year old ( where the previous owner has taken the loss of the initial depreciation) …..
————————-
1. At 1-2% lease rates, depending on the car, cost of borrowing is nothing versus plopping down $20K on a used car and not having that money earn 6-7% a year.

2. When the lease comes up, you could just use the money invested that you would have dropped for a used car and buy it out.

3. You can write off the lease payments if you are using it for your business.

You can have the best of both worlds. Lease a pre-owned car. Should be a bunch of Audis and BMWs cunning back in from starving realtors.

#101 Al on 02.12.18 at 2:39 am

“By selling my 2015 SUV back to the dealership and leasing a brand new 2018, I’m saving over $300 a month (and put $0 down, while getting a cheque for $2K from the dealership). You posted about this a while ago (leasing rather than owning a depreciating asset) and I am SO thankful you did!”

Congrats Alysa on renting in a great location. The new 2018 however is a rather poor financial decision is terms of transportation, leased or otherwise, and it’s an SUV to add insult to injury. Get yourself a more mature and possibly a more fuel efficient mode of transportation, that one decision alone can add hundreds of thousands to your net worth over your lifetime, which means more Freedom to do what you want. You seem like a sharp cookie, do the math vs the alternatives and you’ll quickly realize how that new SUV is a huge money pit, a boat anchor on your finances. Dont forget to include insurance costs….Warning, you may lose social status for driving an older reliable vehicle, but you’ve got experience on how to handle that now :-).

#102 SWL1976 on 02.12.18 at 3:13 am

#49 Screwed Canadian Millenial

Garth is witty, no doubt about it. But let’s be real, there’s nothing “funky” about Guelph. Austin, Texas is funky. Portland, Oregon is funky. Venice Beach is funky. Guelph is just another Grade A Canadian sh*thole. One of many. $1900 a month to rent in Guelph! This is insanity!

==========

Please then just leave already you proverbial whining, entitled, can’t help myself so just blame the boomers mouth piece.

Don’t let the door hit you on the way out.

Make your way to Austin Texas and report back to us on your 15$ an hour no incentive to ever move up or work towards new skills, management position, useless, government catering to the lowest common denominator minimum wage

Get a grip kid

You ‘We’ can’t help someone who can’t help themselves.

You really are screwed.

#103 under the radar on 02.12.18 at 5:36 am

Once upon a time debt was not viewed as being permanent and repaying it as fast as possible was the one goal that took priority over most other financial decisions.
The reward to borrowers over the last ten years reversed peoples aversion to debt and encouraged profligate borrowing and spending AND changed peoples perception so that debt is considered ok as an after tax expense . Those who loaded up with 800k or 1m mortgages are now shackled down . They may be in 1.5 or 3 ml homes , but sleeping tight owing a million in a rising rate environment must be hard to do.

#104 Millenial on 02.12.18 at 6:08 am

#17 technical analysis? on 02.11.18 at 5:38 pm
your problem is interest rates and the US 10 year rate. it’s going to 4% this year and stocks are going to suffer. the DOW/SP/NASDAQ will all see a greater than 20% correction by May.

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

yeah, 10-year treasuries are key to watch. yields are going up, and the Fed will be forced to raise interest rates, whether they want to or not.

apparently some huge new Trump infrastructure spending plan will be made public today: more debt. they were already planning huge deficits for the next few years. lots of treasuries were already planned to come up for auction starting mid this year. china ain’t buying treasuries, nor japan. Fed Reserve ain’t buying anymore, they’re actually selling. who is going to buy all this crap?

#105 Hamsterwheelie on 02.12.18 at 6:17 am

Yay, a positive post! After reading so many nasty comments on women its also a relief to see a woman summarizing & sharing their financial choices.
This weekend I sat down with MadamX.ca for a lesson in taking the first steps to setting up a trading account within a TFSA and understanding all the stats, ratios, graphs and actual mechanics of buying & selling online. I found the option of setting up dummy portfolios just to practice various scenarios, as the route I will baby step along first. (After I open a TFSA) Reading advice on here, and comments is the closest I’ve come to any financial mentoring – and yes, I have reached out but until you actually have any money its just theory and most men who have the knowledge were not generous enough to share. (Mom was amazing but finances was left to accountants & dad moved in a different orbit completely) Thankfully I taught myself to save, to never carry debt (unless its a mortgage that has a positive income and all interest is an expense) to achieve a perfect credit score & never carry a balance on a credit card. (These seem like basic things but we all know people who don’t do any of this) My income is very modest but pairing up with a handy man, moving to smaller city, and using ‘cheap money’ to buy investment properties (all 4 purchased under $200 000 – all doubled in 6 years or less, even in a crappy market) has allowed my finances and his sweat equity to bounce us to new levels. – having a female mentor to discuss the market with as well as this blog, will, I hope and plan, allow us to slowly step up one more rung.

#106 Bad Cowboy on 02.12.18 at 6:47 am

Actually, we did get nuked, by Trudeau being a lackey to American competition eager to shut in Canada’s resource propduction.

What did we hear from Trudy and his Butts regarding the hundreds of billions of foreign investment that left the country and took billions in tax revenues and the million jobs jobs with them? Trudeau said ” the price of gas went down and that’s why the projects were cancelled”.

In fact giant LNG projects are feeding China’s insatiable appetite for gas at historically high prices . Canadians have been lied to. Chennierre in the US and Statoil in Norway are taking in billions from the conga line of tankers headed for China. Australia has been successfully eating Canada’u
Nah for years with LNG off PNG south coast. Trudeau and Butts lied . Petronus , Total and all the others were pushed away by leftist regulation designed to kill any idea of Canada competing internationally. Trudeau and Butts screwed you. You see small articles about another factory on Onrario leaving almost every day…but pushing away nearly a trillion in investment that would have lowered your taxes , lowered the cost of education and fed the starving seniors is a Trudeau/Butts crime against our nation. The market for LNG to China is growing exponentially ..and your CTV, CBC and civil service unions lied to you in return for bribes from Trudeau Liberals. Good luck paying 100% taxation.

#107 MF on 02.12.18 at 6:55 am

#86 FahtCoot on 02.11.18 at 10:58 pm

Superb post.

Thank you for that.

If anyone ever doubts how important/great this comment section is, read posts like this one.

MF

#108 MF on 02.12.18 at 7:04 am

#81 allperils on 02.11.18 at 10:18 pm

Yes and no.

The unemployment levels are an important part of the story, but not the main driver IMO. This has been the case since 2008.

Reason: the worse the world and Canadian economy news would get, the more “stimulus” the markets received. I peg interest rates as the main culprit.

Also, you cannot blame people for taking on huge mortgages. Anyone (mostly gen x) who bought in
2007-10ish did extremely well (obviously no skill and through luck).

#103 under the radar on 02.12.18 at 5:36 am

“Once upon a time debt was not viewed as being permanent and repaying it as fast as possible was the one goal that took priority over most other financial decisions.”

-Those days are long gone. EVERYONE under 40 who purchased real estate expects to “roll over” their mortgages with the gains on their current properties and move up. Thank the BoC for this hilarious state.

MF

#109 Ace Goodheart on 02.12.18 at 7:15 am

Alyssa’s right about cars. They are a very expensive way of getting places. If you are in the market for one, you really look at two things: how much they cost to insure, and what is the price per km that you will pay to drive, including depreciation, interest on financing, maintenance and fuel costs.

This is why you should avoid the following cars:

Sports cars: insurance is very expensive. Why are you paying to drive a race car that you never race?

SUVs: fuel and maintenance costs are high. Also, they cost on average about 20K more than your economy four door hatchback, which accomplishes the same purpose.

Any high or mid level model of car: you are paying more money, for the same amount of transportation. Often the mid and high trim level cars come with the exact same engine and transmission as the base model. So you are just paying more for the same car.

I look for base model four door hatchbacks with proven drivetrains. They can be had for under 25K and they usually last around 400K if you take care of them. Maintenance and insurance is cheap. Price per km is around the lowest in the industry.

Oh and electric cars? Nice idea, but the 20 or 30K more you pay for them, takes away any of the savings you get on fuel and maintenance. And remember what happens to a battery when you charge it? Each time, it holds slightly less electricity, until it won’t hold a charge at all.

#110 maxx on 02.12.18 at 7:29 am

#134 DON on 02.10.18 at 11:03 am

“SCM: idiots transcend all generations. Why perpetuate the labels that allow divide and conquer tactics. There are good boomers and bad boomers. While I understand your criticism – generalizing is not the way to debate nor is making assumptions.

Your thinking isn’t the problem (for the most part) it is your delivery that lacks. Every generation goes through the same trial and tribulations. The young are not unique, nor are the old.”

You’ve misplaced the piece for divide and conquer tactics on the wrong square, Homer.

SCM’s emotional age lags far behind its chronological age given the disproportionate degree of amusement it gets from fishing for reaction.

Nevertheless, ageism ought never, ever, be tolerated – in either direction. It is the thin edge of a very nasty wedge, the destructive nature of which has repeated throughout history in far too many contexts.

Unfortunately, SCM is currently being coached by people in high places who are maturity-deficient and amateur pop-psychologists who dispense tedious, rank and file, self-appointed life coaching, walking the finest of lines between censorship and dictatorship and reeking of ultimate moral authority.

The real problem with this 5-cent approach is that people come to believe that a “there, there” approach or a slap on the wrist is the only consequence of ageism.

The world is full of people wielding far too much misplaced power over the young and the old, the devastating consequences of which are continuously reported in msm.

Does the “wisdom” you dispense make you a good boomer, a bad one or one that transcends all generations?

#111 Rooster on 02.12.18 at 7:34 am

TV execs are reaching into the nostalgia barrel to revive old shows like Murphy Brown, Roseanne, and MacGyver.

“The recent surge in TV reboots has drawn some backlash from audiences, who are questioning whether TV executives, like studio execs, have run out of ideas.”*

I wonder if the Fed is planning to bring Hazel back? She’s only been gone two weeks and just look at the state of the place.

https://www.marketwatch.com/story/will-tvs-recent-reboot-trend-tarnish-its-golden-era-2018-02-08 *

#112 Trumpocalypse2018 on 02.12.18 at 7:38 am

The icing on that cake would be prophetic, except it’s missing one word:

….Yet….

PREPARE.

#113 Rooster on 02.12.18 at 7:55 am

#101 Al on 02.12.18 at 2:39 am
“By selling my 2015 SUV back to the dealership and leasing a brand new 2018, …. You posted about this a while ago (leasing rather than owning a depreciating asset) and I am SO thankful you did!”
—-
Congrats …. The new 2018 however is a rather poor financial decision is terms of transportation, leased or otherwise, and it’s an SUV to add insult to injury. Get yourself a more mature and possibly a more fuel efficient mode of transportation, that one decision alone can add hundreds of thousands to your net worth over your lifetime, which means more Freedom to do what you want.
***************

I think she wants an SUV. We are all depreciating, some faster than others. I’ve got a 1959 Entropy, and although I hope to get a few more years out of it, the repairs are starting to add up. I put 3 new discs in it last year and it still creaks.

#114 Paul on 02.12.18 at 7:57 am

#80 Blessed_Canadian_Millennial on 02.11.18 at 10:03 pm
This means that even if they STOP contributing a single penny, they will have $600K by the time they’re 40, $1.2M by the time they’re 50, and a whopping $2.4M when they hit 60.
————————————————————————————————
It’s not when they hit 60 it’s if.enjoy the ride.

#115 Paul on 02.12.18 at 8:02 am

#65 mark on 02.11.18 at 8:52 pm
I give my posts to S C M
————————————————————————————————
Hey Mark.
This might work with Garth?
Nah

https://www.youtube.com/watch?v=3cqJG-fOoTM

#116 maxx on 02.12.18 at 8:35 am

“Alyssa’s greatest gift: contentment. How many among us possess this?”

Moi.

Alyssa and her squeeze are wise beyond their years….they wanted to learn, did, and are well on their way to becoming rich. Bravo!!

I’d love to read more stories like this beacon of hope and success.

#117 Bytor the Snow Dog on 02.12.18 at 8:54 am

@White Cat…errrr…. Black Dog:

You can go back to your safe space at the Brock website of it’s to offensive for you here, Dear.

RE: Cars- I luv my Dodge Challenger. Yes it has a HEMI in it. Zoom Zoom. It’s parked for the winter so I drive my Dodge pickup with a V8 in it. Need to warm up the ole globe.

In Garth’s post above : “Higher rates, higher wages, more inflation and rising debt yields are negatives for stocks”.

Investor class wins working class loses.

#118 Tater on 02.12.18 at 9:00 am

#257 tccontrarian on 02.09.18 at 4:47 pm
#246 Tater on 02.09.18 at 2:53 pm
————————————————————-
$100,000 says the Dow is going $20 million), is already ‘betting’ on this via short positions which are worth several million already.
But, the problem with being ‘contrarian’ is that you don’t want the spot-light on you and thus alert the m-asses.

The statement stands – just track it and remember it so that you can see who’s right or wrong. Speaking of ‘tracking’ etc.
I saw Dennis Gartmann on BNN today predicting a big bear market – and so I covered some of my short positions immediately! D.G. is one of the best contrarian indicators known to man!
Just google his (in)famous call on oil in 2016! I should be thankful – as he helped me make money!

TCC
—————————————————————–
Soooo, you don’t want to make the bet? Not surprised.

Too bad, could have made a lump of cash off you.

#119 Bytor the Snow Dog on 02.12.18 at 9:02 am

Wow, excuse my Smoking Man spelling in that first sentence. Should be “if” and “too”.

#120 LivinLarge on 02.12.18 at 9:41 am

“better option is low mileage used audi or benz aka former realatard ride that are plentiful, pay cash and drive it till the wheels fall off.”…now why would anyone capable of operating a simple calculator ever pay cash for a depreciating asset? Sure the truly ugly initial depreciation has come and gone but the hunk of iron and plastic is still depreciating and your cash could be pulling in 7% oer year. You’re the guy the dealerships just love love love.

#121 Blackdog on 02.12.18 at 9:46 am

@Bytor the Snow Dog re: ” You can go back to your safe space at the Brock website of it’s to offensive for you here, Dear.”

I come here for the investment advice. Give 2 nickles about the a-holes as have become immune. They are everyone, on every site, but thanks for your concern. You have yourself a wonderful day!

#122 IHCTD9 on 02.12.18 at 9:49 am

#66 IsleOfVanMan on 02.11.18 at 9:02 pm
IHCTD9 -what model Saab were you driving ?? Sounds like we’re living in a parallel universe… I’m driving a 2000 Viggen which has been rock solid… Only real repair has been replacing brake pads and rotors over 5 years of ownership.
_______________________________

It was a 99 9-3 SE, last year for the T5 H block. The car ate a serpentine belt, 1 set of brakes, 1 ignition switch, 1 DIC unit, 1 evap. solenoid, 1 fuel pump (bought like that), needed some exhaust work, and went thru 2 tires. It also had all the goofy SAAB ailments like the info display looking like braille, broken green rollers for the power windows, and dumb unexplainable electrical problems.

I liked the car, but it needed semi regular attention. I did all the work myself with used parts where it made sense. It was not expensive to own if you knew how to get around using expensive parts ( I saved 600.00 on fuel pump, 750.00 on DIC etc).

It actually was one hell of a car for 1300. I had the boost cranked up to 20 lbs – real fast and smooth on the 401 :)

#123 Smoking Man on 02.12.18 at 10:05 am

#119 Bytor the Snow Dog on 02.12.18 at 9:02 am
Wow, excuse my Smoking Man spelling in that first sentence. Should be “if” and “too”.

The keyboa5ds on these phones have minds of their own.
No need to apologize.

#124 KLNR on 02.12.18 at 10:16 am

LOL, leasing a vehicle makes no financial sense at all (unless it’s tax deductible).

#125 IHCTD9 on 02.12.18 at 10:21 am

#86 FahtCoot on 02.11.18 at 10:58 pm
#54 Doug t on 02.11.18 at 8:10 pm
Life is funny – I struggle daily with anxiety and depression – I am fortunate in having no mortgage and an ample nest egg but life still is a struggle daily – money, success, balanced portfolio don’t bring contentment

RATM

——————————————————-

Well, at least you’ve found out what doesn’t bring contentment!
______________________________

Studies have shown that money does increase happiness, but only to the point where you are comfortable paying your bills and feel secure. Anymore after that point does not increase happiness.

Other studies generally show that happiness comes from relationships as already mentioned above a few times.

Dougt, it sounds like you need a good Woman. MGTOW is a tough row to hoe.

#126 TurnerNation on 02.12.18 at 10:23 am

Here comes the Marxism. Whatever happened to
“We are world class the next New York or London. ”

Now it’s too much and the State much crack down on capitalism?
Wanna bet the “solution” will be more Agenda 21 250sq foot shoeboxes in the sky?

Elite councilors certainly have 1-2m homes in the best areas?

https://www.thestar.com/news/city_hall/2018/02/09/city-to-strategize-on-how-to-stop-toronto-from-becoming-playground-for-the-rich.html

#127 crossbordershopper on 02.12.18 at 10:23 am

i only buy cars for 2 grand or less, and drive it till it doesnt. then the guy comes and gives me 300 bucks for it. total investment net 1700. my last purchase was 3 years ago, why pay anything for a car other than insurance say 800 bucks a year, and some gas, and i wouldnt spend more than 500 a year on repairs so all in you shouldnt spend all in 200 a month on a car, insurance, gas, and investment. anything more than that is too much.
lease is for write off investment for job or business, financing is for people who dont understand depreciation, everyone else, buys a toaster then when it doesnt work you get a new one, same as vehicles, total expense and the key is to keep costs to the bone.

#128 IHCTD9 on 02.12.18 at 10:41 am

#99 Lost…but not leased on 02.12.18 at 1:23 am
Re: Alyssa

Evidence indicates she either:
(i)doesn’t exist or else
(ii) from Western Canada ie BC.
____________________________

A and Hubs bought a house in an un-named small town, then sold making 100K. They then moved to Guelph – which is in Ontario. All in the Post.

#129 Blackdog on 02.12.18 at 10:45 am

I love this quote! Thought I’d share it this bright sunny morning (in Ottawa anyway).

“Taking Responsibility is a recognition of the power that you seize when you STOP blaming people.” -Will Smith

#130 Another Deckchair on 02.12.18 at 10:51 am

Lotsa car talk here last night/today.

My takeaway on the discussion is:

1) People did not read that Alyssa and spouse let the dealership handle warranty repairs; no hassle for them with old cars and worrying about costs of fuel pumps, etc.

2) They can WALK to wherever they wish to go.

We ALL know that cars are a depreciating asset; why then do we own one? IS it to:

a) Wax it on the weekends;
b) Sit on the highways during the hours-of-commute communing with fellow drivers;
c) use it for the few times when walking/cycling/bussing is not convenient?

—-

My spouse and I have a very good income; but only one car. My walk to work is 10 seconds, but if I go to meetings, either I (rarely) take our car, usually I take the bus, or cycle. It’s about a 1-1/2 to 2 hour walk, so sometimes I’ll walk home from a meeting if the weather is ok. (meetings are in different buildings around town)

I walk to grocery stores, or the local Canadian Tire, or to a coffee shop, or… When there are no snow on the roads, my bicycle does its’ job on the local quiet roads or bike paths.

Do I miss not having a car at my beck and call? Certainly. However, I don’t miss the hassle, and the cost of repairs, gas, road-rage, and insurance.

I *totally* agree with Alyssa and co. and their way of life, and we are (obviously) from different generations. Good for them!

#131 sleepingdragon on 02.12.18 at 10:54 am

@ #76 MF
I also believe the central banks quietly and slowly trying to unload their bloated balance sheets is what is causing yields to increase. How can such a huge player engaging in such a practice not have large consequences? The US FED was buying something hilarious like 90 billion of bonds per month at some point, and they did it for years.

————————————————————–
The Feds plan is to reduce the balance sheet two trillion
over the next 4 years?

#132 Mattl on 02.12.18 at 11:02 am

I did the leasing thing for years and it was like throwing money away. Cars do depreciate fast, and are more relaible then ever. You can pick up great used cars, that will require little more the oil, gas and filters, for a fraction of that they were new. And you won’t be making payments for life. I mean leasing a decent car will cost you 60k over ten years, to drive around in a 30k car. Makes zero sense for anyone that has cash to buy a car for 15 k that was 65k 9 years ago:

https://vancouver.craigslist.ca/rds/ctd/d/2008-bmw-335i-immaculate/6493278157.html

#133 For those about to flop... on 02.12.18 at 11:05 am

I must remit…

M43BC

“Comparing Mexico’s Remittances to Every Other Country

President Trump has long threatened to impose a tax on remittances to Mexico to pay for a wall along the U.S.-Mexico border. We won’t get into the politics surrounding such a hot button issue, but it raises an important issue about just how much money gets sent from the U.S. to other countries. Answering that question formed the basis for our newest map.

Our map was inspired by the Pew Research Center, which gathered data from economists at the World Bank. The numbers reflect cash flows in 2016 leaving the U.S. to people in other countries through official channels, like a bank or wire transfer service. The data exclude cash flows through informal networks—think of sending cash through the mail—which economists suspect might add up to 50% to these totals. We placed the official statistics on a bubble chart, where the size of the circle corresponds to the total annual remittance for each country. We then color-coded each continent and included a percentage for easy reference. Our creative approach lends itself to several quick insights into global remittances leaving the U.S.
First off, the Americas and Asia receive the majority of remittance payments, accounting for 42% and 39.8% of the total global cash flow, respectively. Europe, Africa and Australia and Oceana receive very little money in comparison. Mexico ($28.1B), China ($15.4B), India ($10.7B) and the Philippines ($10.5B) immediately stand out as the top four countries, making up a combined $64.7B in annual remittances, or almost half the entire market (47%, combined).

There are a lot of other interesting trends within each continent too. Generally speaking, remittances are not evenly spread out between countries—a select few dominate the market. Mexico is the obvious stand out in the Americas, but that’s probably because of its physical proximity to the U.S. Instead, take a look at the Dominican Republic ($4.1B). Combined with Haiti ($1.4B), this one island would crack the top ten destinations for cash leaving the U.S. But just how big is the market for remittances to Mexico (at $28.1B? It’s at an all-time high right now, and represents the equivalent of the entire economy of Paraguay. In other words, there’s an enormous transfer of wealth happening year after year.

There’s a similar pattern on other continents too, where a select few countries receive a disproportionate share of remittances. Look at Africa, where Nigeria pulls in $5.7B every year. Or consider Europe, where Germany ($2.8B), France ($2.3B) and Italy ($1.4B) are the only three countries breaking the $1 billion mark. Things look similar in Asia, where four different countries receive more than $5 billion on an annual basis; every other country lags far behind. In short, a few key countries dominate the market.

Top 10 Destinations for Remittances from the United States
1. Mexico: $28.1B

2. China: $15.4B

3. India: $10.7B

4. Philippines: $10.5B

5. Guatemala: $6.8B

6. Vietnam: $6.7B

7. Nigeria: $5.7B

8. El Salvador: $4.2B

9. Dominican Republic: $4.1B

10. Honduras: $3.4B

We can summarize our map of remittances like this: when it rains, it pours. Cash flows accrue at different rates for different countries, and a select few tend to dominate the market. We can speculate about why this happens—perhaps once an immigrant population starts sending money, businesses spring up to facilitate the transfers, making it easier for more money to go overseas. Regardless, the flow of money is so large that taxing it will likely carry enormous economic consequences.”

https://howmuch.net/articles/outgoing-remittances-from-usa

#134 conan on 02.12.18 at 11:21 am

#106 Bad Cowboy on 02.12.18 at 6:47 am

Trudeau said ” the price of gas went down and that’s why the projects were cancelled”.

——-

https://tenor.com/view/monty-python-holy-grail-horse-gif-3517952

Fairly easy to verify ……

https://www.eia.gov/dnav/ng/hist/n9103us3m.htm

#135 Kernel Klink on 02.12.18 at 11:21 am

#111 Rooster on 02.12.18 at 7:34 am

TV execs are reaching into the nostalgia barrel to revive old shows like Murphy Brown, Roseanne, and MacGyver.”

Interesting trend. Most probably they no longer have the budget to produce shows to compete with reality tv and the internet, so they are hoping the old viewers will be dying off and noew ones brought on board. Next up, Lost in Space, Andy of Mayberry, and Hogan’s Heroes. Think of it as the entertainment equivalent of synthetic CDOs, the repackaging of your past leisure experience and pedalling back to you while implying value.

#136 Stan Brooks on 02.12.18 at 11:27 am

#126 TurnerNation on 02.12.18 at 10:23 am
Here comes the Marxism. Whatever happened to
“We are world class the next New York or London. ”

Now it’s too much and the State much crack down on capitalism?
Wanna bet the “solution” will be more Agenda 21 250sq foot shoeboxes in the sky?

Elite councilors certainly have 1-2m homes in the best areas?

https://www.thestar.com/news/city_hall/2018/02/09/city-to-strategize-on-how-to-stop-toronto-from-becoming-playground-for-the-rich.html

—————————————

Toronto and Manhattan?
Bhahahahahaha.
Really, not just New York, but Manhattan?

That summarizes the delusions and mental illness running wild in this land.

Toronto/GTA house prices are direct result of overblown securitized credit, ‘insured’ by CMHC and taken by locals and zero interest rates courtesy of BOC

Manhattanization of Richmond hill – Bathurst and Major Mac shacks at 3.2/2.2 MILLIONS?

Should that be compared to Long Island instead (arguably more expensive though in favor of Richmond Hill)

Manhattan has all the money in the world and people living there have generally 4-5 times, maybe 10 times higher income on average than the working class poor in GTA.

Comparing GTA to New York, London, even Berlin, Frankfurt, Paris is an outright insult.

I take Vienna, Rome, Barcelona (at 4 times cheaper prices, no maintenance) any time that friggin GTA.

Houses in Frankfurt suburbs for 300 k Euro – 20 min train to city centre) compared to 2 million comparable house in f…ing Vaughan, more expensive than even NewMarket or Barry?

There are 2 solutions to this:
1. either default on international MBSs and bank crises so the bail-in legislation
2. uber- inflation of the loonie.

But Canadians have really lost their mind.
Stupid and pathetic.

#137 Howard on 02.12.18 at 11:29 am

#27 conan on 02.11.18 at 6:09 pm

I know quite a few people who made money on their SUV. The car manufacturers did not price some of their models correctly. As a result, they held their value.

One normally loses selling a 3 year old car back to the dealers. To win with them means a private sale would have netted you more.

———————————-

Indeed, and selling a car privately in Ontario is actually very simple. You just order a Used Vehicle Information Package, get safety and emissions tests, post an ad on Kijiji, and away you go.

I don’t consider myself particularly “administratively savvy” but selling my car a few years back wasn’t complicated at all and certainly netted me more than selling it to a dealership or one of those other professional used-car purchasing outfits.

#138 Damifino on 02.12.18 at 11:59 am

#86 FahtCoot

I view money more as an actuator. If you’re generous, it gives you more money to be generous with. If you’re greedy, it gives you more to hoard to yourself. It doesn’t CHANGE who you are, it magnifies who you are.
——————————————

I view money simply as a resource that knows nothing about who you are:

A woman lives in a village a mile away from a river. She must carry 10 gallons of water to her home each day just to survive.

Because she’s ambitious, she carries and extra gallon or two on each trip and keeps it a cistern, built with her own effort, and designed to store lots of water .

Eventually, the cistern fills and she has the choice of drawing from the cistern and temporarily avoiding the chore of carrying water or… lending the water to others.

Of course, borrowers must pay back each gallon (eventually) along with an extra quart (the next day). People love the idea. They hate going down to the river and lugging water. They borrow many gallons long term but they’re only required to quickly pay back quarts.

The woman eventually amasses a great deal of water and finds the quarts coming in each day supply all her needs
permanently (as long as there remains a rule of law and no punitive taxation)

The world opens up for her. She may now forget about the drudgery of hauling water and turn her attentions to more interesting and rewarding pursuits.

If she finds she lacks the imagination and curiosity to do that, she will squander her water capital and return to drudgery. But that seems unlikely, doesn’t it?

#139 IHCTD9 on 02.12.18 at 12:00 pm

https://www.kijiji.ca/v-cars-trucks/city-of-toronto/2009-mercedes-benz-c-class-c63-amg-451hp-navi/1323539582

^ I almost bought one of these back in the day before I smartened up.

A new one today costs 80-90K and is only .5 sec. faster zero 0-100 than the 09. The 09 looks great, 451 HP turns into 550 with 4K worth of mods. Great sounding V8, and an easy 11 sec family hauler.

The ad above shows for about 20K, you can get one with decently low mileage in like new appearance. These cars are rare, simple (big SOHC V8, standard coil suspension), and are likely one of the best performance car buys out there right now, less than 1/4 of the cost with 87% of the performance.

No one on your block will own one – or anything that sounds/runs like it either. All you have to do is feed it – 10mpg avg.

Can you get a 2018 Civic for 22K?

#140 Capt. Serious on 02.12.18 at 12:03 pm

Car beater blog, back again.

#141 Evangeline on 02.12.18 at 12:07 pm

That was a great post, both A’s happy note and your optimistic response.

#142 LivinLarge on 02.12.18 at 12:26 pm

No kidding Capt. Serious!!! It’s like trying to train a sheepdog when they get a sniff of something in heat.

The next thing will be a small mention of a shoe or purse budget and we’ll see 2000 lines of distraction. I’m beginning to understand more clearly why so many folks make sooooo many foolish mistakes when it comes to their money.

#143 Ian on 02.12.18 at 12:28 pm

You guys can develop a cap-and-trade system where your daily posting limits are sold to SCM for something.

Problem is he’s at McDonald’s using the free wifi and can’t afford your prices!

#144 Pre-retiree on 02.12.18 at 12:30 pm

To: #46 Buying vs. Leasing a Car on 02.11.18 at 7:41 pm

I am in total agreement with you. Just did the same. Love my “cheap” used luxury SUV. Top of the line at rock bottom price.
Sold my 2005 Toyota van with over 300 k on it, for 4000, private sale of course.
I will never buy a new car. The kids drive used low-lm Toyotas that drive like new.

#145 Mark on 02.12.18 at 12:34 pm

“…but pushing away nearly a trillion in investment that would have lowered your taxes , lowered the cost of education and fed the starving seniors is a Trudeau/Butts crime against our nation. “

The natural gas, in the ground, is, and always will be a valuable resource. It may become more valuable even in the future with inflation. There was no reason to rush to produce it, only to inefficiently ship it overseas (LNG liquefaction and the opposite process, as well as transportation consumes around 25% of the gas itself).

Natural gas from northern Alberta/BC is a valuable resource which is needed to keep costs of a North American industrial revival reasonable. If we sell the raw resource away for a song, what proprietary advantage does North America have? Also, it is considerably more capital intensive to extract it on a short-term basis, rather than spread its extraction out for the next few hundred years.

So I wasn’t disappointed to see Petronas and their project die. Seriously, what were they thinking, building such a project in the middle of a salmon migration route?

#146 crowdedelevatorfartz on 02.12.18 at 12:44 pm

@#112 Trumpocalypse2018

God bless ya Trumpy.
Always seem to find the black lining in every silver cloud……

Will you donate your stored food 40 years hence to a deserving Carribean country?

http://www.google.ca/url?url=http://www.independent.co.uk/news/world/americas/puerto-rico-food-donations-survivalist-us-a7987096.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiqgeTj9qDZAhUD0WMKHYsrDsAQFggmMAM&usg=AOvVaw0cbeDys5OSLQ8fM9WZnJ59

#147 jess on 02.12.18 at 12:45 pm

Cryptojacking Threatens Critical Infrastructure,

Radiflow announced that it had discovered cryptocurrency mining malware in the operational technology network (which does monitoring and control) of a water utility in Europe—

…..”Friday that a group of Russian scientists were recently arrested for allegedly using the supercomputer at a secret Russian research and nuclear warhead facility for Bitcoin mining.”

https://www.wired.com/story/cryptojacking-critical-infrastructure/

#148 JohnyBoy on 02.12.18 at 12:52 pm

#55 Smoking Man on 02.11.18 at 1:07 am

I read Jordan Peterson’s book.
He missed out the main driver to pure happiness.
Ditch friends. Look in the mirror naked and lie to yourself.
Don’t get any better than that.
_______________________________________
Ha, just got back from Ice Fishing in the far North where phone signal is non-existent this weekend. Read through all the weekends posts. This one stood out.

Smoking Man that first step must have been easy!
Friends before reading book Zero!
Friends after reading book Zero!

#149 Sgt. Shultz on 02.12.18 at 12:56 pm

#135 Kernel Klink on 02.12.18 at 11:21 am
#111 Rooster on 02.12.18 at 7:34 am

TV execs are reaching into the nostalgia barrel to revive old shows like Murphy Brown, Roseanne, and MacGyver.”

Interesting trend. …… Think of it as the entertainment equivalent of synthetic CDOs, the repackaging of your past leisure experience and pedalling back to you while implying value.
***********
I read that the ECB is hoping to start building new “tranches”.

I zee nossing!

https://wolfstreet.com/2018/01/24/ecbs-new-plan-b-oh-my-synthetic-structured-eurobonds/

#150 DON on 02.12.18 at 1:04 pm

#110 maxx on 02.12.18 at 7:29 am

#134 DON on 02.10.18 at 11:03 am

“SCM: idiots transcend all generations. Why perpetuate the labels that allow divide and conquer tactics. There are good boomers and bad boomers. While I understand your criticism – generalizing is not the way to debate nor is making assumptions.

Your thinking isn’t the problem (for the most part) it is your delivery that lacks. Every generation goes through the same trial and tribulations. The young are not unique, nor are the old.”…

blah

… Does the “wisdom” you dispense make you a good boomer, a bad one or one that transcends all generations?
********************

Idiots transcending all generations is not WISDOM it is Knowledge. AND who you calling a Boomer.

ASSUME…makes

#151 45north on 02.12.18 at 1:08 pm

Screwed Canadian Millenial: there’s nothing “funky” about Guelph. Austin, Texas is funky.

I’ve never been to Austin, but I’ve heard it is. But aren’t you out-of-character? I mean someone who’s been to Austin Texas, Portland Oregon and Venice Beach doesn’t fit my image of the screwed Canadian millennial.

Guelph is just another Grade A Canadian shithole.

again out-of-character. I don’t mean to pry but where did your grand parents come from? My image of the screwed Canadian millennial has grand parents that lived in Guelph or some such place – lazy summers that never ended, grand ma took you out for ice cream.

#152 Sue on 02.12.18 at 1:10 pm

#70 Leo

I had to click and share your opinion. I have been following the DNC corruption for quite some time. It astounds me that most people don’t know and don’t care. Sad! (lol couldn’t resist the Trumpism)

#153 ulsterman on 02.12.18 at 1:15 pm

#53 No Name “5k oil change is just money grab”

I’m with you on this. In the UK you just don’t see these quickie oil change drive thru’s like you do here in Canada. Half the people there don’t even know when they last changed their oil. Yet here in Canada it feels like i’m changing oil every 3 months or so. Ding! Ding! Goes the oil light.

#154 -=jwk=- on 02.12.18 at 1:16 pm

I test drove 2 almost identical 1998 Benzs and picked the one with fancier options and a cost around $3000.

Why lease?

Airbags. ABS. Working stereo. MP3’s. Radial tires. Crumple zones. 5 star crash tests. Fuel economy. Lots of reasons, really.

Why drive an old clunker when you can drive something much nicer and much safer for the same amount of money?

#155 IHCTD9 on 02.12.18 at 1:21 pm

…..”Friday that a group of Russian scientists were recently arrested for allegedly using the supercomputer at a secret Russian research and nuclear warhead facility for Bitcoin mining.”
_______

LOL that is hilarious!

#156 Greg on 02.12.18 at 1:26 pm

$1900 for a three bedroom near downtown anyplace is a great deal.

#157 Duvan on 02.12.18 at 1:32 pm

#7 Bruce on 02.11.18 at 5:23 pm
Can someone provide the link or date to Garth’s article comparing leasing vs owning.
============

I think this link could be the article:
http://www.greaterfool.ca/2014/05/07/how-to-ride/

#158 IHCTD9 on 02.12.18 at 1:55 pm

#146 crowdedelevatorfartz on 02.12.18 at 12:44 pm
@#112 Trumpocalypse2018

God bless ya Trumpy.
Always seem to find the black lining in every silver cloud……

Will you donate your stored food 40 years hence to a deserving Carribean country?
________________________________________

I might be building a house in the next few years on one of my lots. Still trying to decide if I should add a hidden underground bunker when no one’s looking and fill it with canned food and ordinance.

Guy at work says make sure I SHTF-proof the house.

#159 Hank on 02.12.18 at 1:59 pm

Isn’t your blog based on the doom and gloom of an impending collapse of the real estate market?

No, why? – Garth

#160 IHCTD9 on 02.12.18 at 2:09 pm

#154 -=jwk=- on 02.12.18 at 1:16 pm
I test drove 2 almost identical 1998 Benzs and picked the one with fancier options and a cost around $3000.

Why lease?

Airbags. ABS. Working stereo. MP3’s. Radial tires. Crumple zones. 5 star crash tests. Fuel economy. Lots of reasons, really.

Why drive an old clunker when you can drive something much nicer and much safer for the same amount of money?
____________________________________

You aren’t leasing a new car for very long with a $3000.00 bill.

Leasing has it’s merit, but it ain’t the same amount of money as driving a 3K car for the same amount of time. Not even remotely close actually.

There is no real debate on the beater car low cost driving winner. That would be the very carefully selected used car bought by the very knowledgeable car enthusiast/mechanic.

Like I posted earlier, my monthly bill to drive over the last five years was 12-25.00 depending on how things work out. Probably going to be 14-15.00 per month all said and done. Most folks spend more than that on coffee in a month.

FWIW, my last 19 year old beater had: Airbags. ABS. Working stereo. Radial tires. Crumple zones. Decent Fuel economy.

#161 Yorkville Renter on 02.12.18 at 2:20 pm

#130 – Deckchair – we could be neighbours! Same story over here… 1 car, good income, lots of walking and cycling.

I’ve also got the movies, a few goodlife gyms and restaurants all under 15 minutes walk. Life is good!

#162 For those about to flop... on 02.12.18 at 2:30 pm

Knowing some of the hellish commutes Canadians go through to get to work, it is doubtful that I am the only person that has pooped inside their vehicle.

I guess having a campervan with an operational toilet aboard ,and not being on the highway at the time would be the main difference in our experiences…

M43BC

#163 Canadianbob on 02.12.18 at 2:36 pm

“She has freedom, choices, liquidity, cash flow, wealth and time, while being free of debt and encumbrance”

What “wealth” does she have?

#164 chris on 02.12.18 at 2:45 pm

oncebittwiceshy on 02.11.18 at 11:56 pm
Sam the Sham: “Alyssa, I love people like you with this kind of mentality. You and the others are going to make me rich beyond my wildest dreams. I wish I could hug and kiss you, except it would be considered sexual harassment in this day and age.

An evil old landlord/rentier”
<<<<<<<<<<<<<<<<<<<<<<<<

An appropriate name. I'm quite sure that you would be bending over and kissing yourself goodbye if all of the Millennials shared her mentality.

Everybody renting and nobody buying means your homes are worth dirt.

Your ass backwards attempt at pumping home investment speaks volumes to the mentality of the average specuvestor.

Tick Tock.

**************
LOOLLLLL .. No disrespect butthis is like what came first the egg or the chicken .. So everybody rents and houses are worthless … You made me laugh so hard .. disclaimer I might be biased .. also a landlord .. 6 + 12 units .. heard of inflation ? long term wealth creation ?

#165 tccontrarian on 02.12.18 at 2:47 pm

@ Tater

As stated earlier, myself and that other ‘contrarian’ fellow I mentioned, are both betting BIG on the decline (in the millions of $$’s), so to add another $100,000 in the pot via fleecing a clueless, nameless forum participant, wouldn’t make much sense.
Too much effort for too little reward. The only ‘bragging rights’ I’m after is a growing portfolio balance.

By end of 2019 we’ll all know who’s been right and who not. But let me leave you with a hint: check out a technical term called, “megaphone formation” – and the implications for the SP500. Go back 20 years.

Good luck to you and anyone thinking this was just a correction. It was a prelude!

TCC

#166 Steven Rowlandson on 02.12.18 at 2:47 pm

“So, no recession. No bear. This is not 2008.”

Yet. Patience Garth the year is just getting started.
Anything can happen over the next ten months.

#167 SoggyShorts on 02.12.18 at 2:53 pm

#163 Canadianbob on 02.12.18 at 2:36 pm
“She has freedom, choices, liquidity, cash flow, wealth and time, while being free of debt and encumbrance”

What “wealth” does she have?
*************************
The 300K in investments that will be over 2m when she hits retirement even if she never invests another cent.

#168 Bytor the Snow Dog on 02.12.18 at 2:53 pm

@Black Dog- You are “immune” and you “don’t care” yet every comment you make is about the “assholes”.

It’s not what they say it’s what they do.

#169 JohnnyBoy on 02.12.18 at 3:07 pm

Guelph (from a small town)
How much smaller can you get?
I hear that it is nice in the summer, for one day!

#170 Lost...but not leased on 02.12.18 at 3:28 pm

#162 Flop

” I’ m not the only one that pooped inside a vehicle ”

By default that must include blog comrade crowdedelevatorfartz

#171 Lost...but not leased on 02.12.18 at 3:31 pm

Re: vehicles…if not too fussy…see what makes and models cab companies(or any fleet vehicles) and other firms use.

Maybe even ask to talk to one of their mechanics…

#172 Renter's Revenge! on 02.12.18 at 4:01 pm

#143 Ian on 02.12.18 at 12:28 pm
You guys can develop a cap-and-trade system where your daily posting limits are sold to SCM for something.

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

That’s a great idea! We should all be doing our part to fight blogal warming.

#173 NoName on 02.12.18 at 4:32 pm

#133 For those about to flop… on 02.12.18 at 11:05 am

Remittance, we send money every so often some money to my family back home and to wife’s, plus 4times a year we send box size of dishwasher with everything, from clothes to canned goods, wifes sister have store sells what she can and her niece keeps my daughters chlothes, boy was she ever happy with tennis rackets an brand new Allstars shoes… Other day wife was on fone with her sister, and after she hang up she told me that our nice thinks that we are rich… I was LOL-ing all day.

where I was going with this, yes I remember reading somewhere, biggest filipnes export is single female, and remitances are 10-15% of GDP.

#174 Sardonic Lizard on 02.12.18 at 4:49 pm

Gartho,

You should tell your webmaster to secure this blog with a certificate. Not that I really care about the personal privacy of the deplorables in the comment section, but soon web browsers like Google Chrome will be throwing up warnings to people visiting unsecure websites.

Something to consider.

#175 Ronaldo on 02.12.18 at 5:22 pm

#163 Canadianbob on 02.12.18 at 2:36 pm

What “wealth” does she have?
—————————————————————
Maybe this might answer your question.

https://www.quora.com/What-is-the-best-way-to-measure-the-wealth-of-an-individual

There are many other ways of measuring a persons wealth other than by money. Think about it.

#176 Ronaldo on 02.12.18 at 5:28 pm

#150 Don

Don’t waste your breath responding to SCM. You just play into her hands. Attention seeker extraordinaire.

#177 Grey Dog on 02.12.18 at 6:13 pm

54 DougT
For winter depression [email protected] from Shoppers Drug Mart Medical Supplies Store if you are stuck in Canada, works wonders, I’ve even used mine mid summer when we’ve had a grey week! Just sit under it for 1/2 hour as I read the paper in the morning. Make certain it shines DOWN on you, not sit on table shining up as the ones from Costco did a couple of years ago (a nauseous waste of time). If that doesn’t bring you out of your slump within 2 days…get to know your doctor better.

#178 Cristian on 02.12.18 at 6:38 pm

“After shedding almost 10%, equities stabilized and buyers flooded in.”

REALLY!!???
2 days of buying means that it has stabilized? Yoohooo!!!
Or maybe not?… Let me see, old charts show me that equities have stabilized in the past too before shedding another 20% or 30%…
Who can tell? Certainly not you, Garth, nor me or anybody else.
Anyway, what I wanted to say is, as am sure you know it too, 2 days of buying after several of selling does not mean that the market has stabilized.

#179 Canadianbob on 02.13.18 at 12:25 pm

Ronaldo,

Thanks for the link.

The article you linked blurs the lines between “debt” and “savings”. “Save”…in what? GICs? Mutual funds? Stocks? Those are all debt instruments. They all have counterparty risk. They are all investmets, not savings.

“Wealth” is kind of an amorphous term. Meaning different things to different people. “Freedom” and “FreeTime” as highlighted in your article, I would argue, are results of having sufficient wealth. Not wealth in and of itself.

#180 Marc the Litigator on 02.13.18 at 3:43 pm

Yet another “Marc” here …

I believe this picture of my pick for next PM of Canada will make a great headline photo for this blog as well.

https://www.instagram.com/p/BfJlZYPnL3N/?hl=en