Financial intimacy

Jenn and Allan are close about everything. Except money. It’s a no-go zone.

“I have no idea what he makes,” she said when I interviewed her. “Don’t know what his pension is, either. Anyway he’s terrible with money, so we keep everything separate.” No joint account, I asked? “For the house expenses, yes. We both contribute equally.” And how about the RESP for six-year-old Alana? “I look after that,” Jenn said. “Because he’s terrible with money.” I get it.

Not only are young adults spending an historic amount of time in the parental basement and getting hitched later, seems a lot of them don’t actually trust each other. Even when they marry, or have kids. Is it because so many have seen their own parents split up? Beats me. But the majority of young couples sitting across from me lately have zero clue about how this poisonous mistrust costs them a pile of money.

So let’s fix that.

Marriage (or living common law) is an economic union. Accept that, or don’t hook up. If you plan on raising a family and getting old together, finances have to be integrated. The costs of not doing so are big. Unwise spending. Secrecy. Suspicion. Lousy financial planning. Late-stage surprises. And a lot more tax.

If you truly love another person, what better way could there possibly be of expressing it than with effective tax avoidance strategies? (This is why Dorothy adores me.) Here are five of my favs.

Sleep together, invest together.
The world of finance does not start and stop with an RRSP or a TFSA, which must be registered in your individual name. Having a non-reg investment account as well means enjoying a 50% reduction in capital gains tax and using the dividend tax credit, then withdrawing income in retirement which is not subject to any withholding tax (like your RRSP or pension).

When two partners have a joint account the returns can be attributed to them equally, so if one’s in a lower tax bracket money can be saved. This also makes sense since (apparently) we don’t live forever. So when a partner passes, all of the assets immediately become the property of the other – no delay, no probate, no tax.

 

Use your RRSP to split income.
This is probably the single-best tax-busting tool available to couples when one person earns more or a partner stays home to care for the spawn. The higher-earner should plow the contributions into a spousal plan instead of their own. They enjoy the deduction (and tax relief) from their own income, but after three years the money belongs to the spouse – who can remove it at a lower (or non-existent) level of tax. Big win-win, especially when you use this to finance a mat leave.

No, you are not equal.
Married partners seldom make the exact same amount. And in most marriages a woman will take time to bear and care for children. So why would you ever set up a joint bank account for house expenses and contribute to it equally?

Bad idea. Instead the person with the highest income should pay for everything – the mortgage, child care, dog food, insurance, Netflix, data, tats – the works. The lower-income and less-taxed partner can then use all of his or her income to invest. Since they’re in a lower tax bracket the returns net of tax will be greater, and family wealth augmented.

Borrow from the Bank of Love
Why get a loan from the voracious Venus fly-trapper [email protected] when you can borrow from your husband or wife? The rules allow spouses to give each other loans at the CRA proscribed rate of 2% (it used to be 1% until April), which can be a huge advantage. A husband (or wife) could loan $500,000 to be invested in assets yielding 7%, and none of that growth would be attributed back to the lender – a great strategy if the other person earns less (or nothing).

The interest actually has to be paid once a year, taxable as income in the hands of the lending partner. But it’s 100% deductible from investment gains for the borrower. The same sweet deal does not apply to gifting assets (like ETFs or other financial securities), since they’re deemed to be sold when transferred, and may be taxable. But cash is good.

The wrinklie advantage
Getting old sucks less when you can use your squeeze to chop pension tax. The law allows you to split 50% of eligible pension income with a lower-taxed spouse, including money coming from a registered pension plan as well as RRSPs and RRIFs for people over 65. You can also share CPP payments – a nice boost if one spouse stayed out of the workforce for years raising a family. In that case the pension payments would be made equal, potentially cutting overall tax.

See? It’s not all about free sex or finding someone who can cook. It’s also financial. What a turn-on.

82 comments ↓

#1 Kevin Doiron on 05.06.18 at 3:00 pm

Fist!!!

#2 TRUMP on 05.06.18 at 3:04 pm

Your best offence is DEFENCE!!!!

So explain the rules when you get the phone call from the DIVORCE LAWYER??

And your both sitting on all this cash in a mutual account and collecting your pension is not too far away.

#3 Zapstrap on 05.06.18 at 3:18 pm

What a concept …

#4 El presidente trump on 05.06.18 at 3:20 pm

Where’s the part about paying off the porn stars? Do you provide advice on such matters?

And where is my hero FF . That dude was awesome.

#5 Chaddywack on 05.06.18 at 3:47 pm

My wife is the higher income earner. If both our paycheques go into a joint account, how does one prove that she is paying all our expenses and I am investing all my income since it’s one big mishmash?

Pay the expenses, then invest the rest. – Garth

#6 Jimmy on 05.06.18 at 3:54 pm

I say go out and enjoy the day.

#7 Honey Dripper on 05.06.18 at 3:56 pm

Work on tax avoidance and get therapy if you are still house horny. Great 5 points to save more of what you have!

#8 North Burnaby on 05.06.18 at 3:58 pm

OMG.. Presale condos have finally peaked

#9 Jamie Dimon on 05.06.18 at 4:04 pm

So if rich spouse has stuffed TFSA and poor spouse has ample room advisable for poor spouse to get a spousal loan and stuff tfsa and chip away at spousal debt rather than rich spouse going into a non-registered and poor spouse chipping away at filling tfsa? I ask as I am led to believe to tfsa is the heavy weight champ of tax benefit and the sooner it’s full the better? Or am I over thinking this thing….Incomes of spouses very similar….

No loan required to fill a spouse’s TFSA. Just gift the money. – Garth

#10 crowdedelevatorfartz on 05.06.18 at 4:19 pm

@#8 North Burnaby

“Pre Sale condos have finally peaked”
+++++

No more 60 story Towers at Brentwood Mall?
Gob help us all.

#11 For those about to flop... on 05.06.18 at 4:26 pm

Boss, I see another poster asking about Freedom First.

I too have been wondering what he is up to, but as most as you know I am a little bit gun-shy about all this stuff after what happened to Boom.

I think enough people have asked now ,so he made enough of an impression on everyone to ask this question.

Boss,would you mind trying to contact Freedom First just to see if he is o.k?

He would take breaks every now and then but this is the longest gap in postings I can remember.

We didn’t actually get off to the best start,we used to needle each other,I used to try to get him not to generalize about all women and stuck up for my wife.

He obliged,and would say that I was lucky and he was happy that I found a good Canadian girl and I acknowledged his view on things and with divorce rates soaring the numbers were on his side.

He would lurk for long periods and then write me out of the blue to encourage me to continue with my Pink Posts or wishing me well with multiple surgery recoveries.

He demeanour softened slightly but his message basically remained the same and we became blog buddies.

As I mentioned earlier, I should have written this post earlier and if Freedom is lurking I apologize,but I am a coward regarding this issue ,but I think that if something bad did happen he did enough on here to get a nomination for the Blog Dog Hall of Fame.

I had a bad feeling about Boom from the start ,he would announce when he was going on holidays or getting busy and encouraged myself to do the same just to let him know I was o.k.

Freedom,he had a different pattern and I hope he is just lurking and happy living his way of life.

I think I owe it to him to find out either way…

M43BC
M64WI

#12 dakkie on 05.06.18 at 4:34 pm

Bank of Canada: 8% of Canadian Households Owe More Than 20% of the $2.1 Trillion in Debt

http://www.investmentwatchblog.com/bank-of-canada-8-of-canadian-households-owe-more-than-20-of-the-2-1-trillion-in-debt/

#13 Big Kahuna on 05.06.18 at 4:59 pm

It is very funny-we are a liberal society-we have a lesbian premier here in Ontario, a gay rights parade attended by top brass, transgender rights, etc.etc.etc. BUT when it comes to Stormy Daniels all the snowflakes and soyboys turn into Scarlett O’hara from Gone with the Wind-fanning themselves and threatening to faint over the outrage of it all.

#14 Ray Skunk on 05.06.18 at 5:14 pm

Living – and even creating a human being – with someone without even knowing what they earn? Good Lord!

“ah but he’s crap with money lol”

Just when you thought this blog had peaked, Garth pulls another rabbit out of the hat.

I’m staggered. Wow.

#15 mitzerboy aka Queencity kid on 05.06.18 at 5:29 pm

i luv it

#16 [email protected] on 05.06.18 at 5:30 pm

When two partners have a joint account the returns can be attributed to them equally

Attribution rules?
https://yourlifeyourplan.ca/content/uploads/Joint-Accounts.pdf
Page 2 second paragraph.

Is this just never enforced?

#17 john m on 05.06.18 at 5:33 pm

Garth you have a way of putting things in perspective :-)

#18 Common sense on 05.06.18 at 5:34 pm

“Son , sex is never free.”

Best movie line of all time from the movie The Last Detail.

#19 john m on 05.06.18 at 5:37 pm

Big Kahuna<<< how very very true

#20 -=jwk=- on 05.06.18 at 6:30 pm

Attribution rules?
https://yourlifeyourplan.ca/content/uploads/Joint-Accounts.pdf
Page 2 second paragraph.

Is this just never enforced?

The adjusted cash basis of cash, is, the numbers on the bills. You have 75k, spouse has 25k. Give your spouse 25k. You each contribute 50k.

As garth noted, if yo are transfering assets, that’s different. hence the plea to do this whenyou get married, not 20yrs later.

#21 BlogDog123 on 05.06.18 at 6:37 pm

And remember to declare “successor holder” for both you and your spouse’s TFSAs. Much more flexible than a simple beneficiary designation.

The main benefit is you can continue sheltering that TFSA money in your deceased spouse’s account (you are the holder after he/she passes away). Exanple, your spouse has $50,000 invested in equities TFSA, passes away, then 20+ years later more than $200,000 in there tax free for you. A different scenario (don’t maintain that tax sheltered room) if you don’t declare successor holder.

#22 Ode to Shysters on 05.06.18 at 6:51 pm

Good evening Garth,

What if the both are Realtards® and are both currently screaming in financial pain? ;)

Yours truly,
HHC™

#23 Fake News Again on 05.06.18 at 7:21 pm

Keen Reader on 05.06.18 at 5:03 pm
#80 crowdedelevatorfartz on 05.06.18 at 11:53 am

Nice fake news. Hopefully you enjoyed your trolling while I was out for a long bike ride!

Cheers

______

Please tell us what was “fake” about the Govt Workers in Canada imploding the taxpayer with their cushy GOLD PLATED pensions in a couple of years. I would like to see your numbers or website links to your numbers that paint a different picture. Otherwise….go back to your useless Govt job and shut up…..

#24 Mark on 05.06.18 at 7:24 pm

This is incredibly interesting and useful information. I am messaging this URL to my parents for reference. They are not utilizing this strategy and I believe they should.

Since we sold the family house during peak real estate (2013) I have been managing the windfall and have learned quite a lot. Though I thought I knew everything, sometimes even I am surprised.

#25 Alice in Wonderland.. on 05.06.18 at 7:26 pm

Anyone listen to Money Talks, CKNW Vancouver on Saturdays, where Mike Campbell, brother of disgraced former Liberal Premier of BC, Gordon Campbell, has for some time now been on a rant along with Ozzie Jergoff, self proclaimed local real estate expert, about how the NDP is not making real estate more affordable to new RE purchasers in BC, particularly due to the proposed speculation tax? How all the federal and provincial proposals and laws to deflate the RE prices have in effect been harmful to most Canadians!! Yep, that’s because those measures have caused prices in most locals across this country to soften or drop. In some places big time as Garth has reported. These two don’t give a rat’s a$$ about affordability or the ordinary guy struggling to qualify for a mortgage!!

Campbell is the same disingenuous dude who rants about how the high gas price at the pump in Vancouver is due to the Dippers holding back the Kinder Morgan pipeline extension…Like does anyone think that pump prices in Vancouver would drop if the agreement was signed today?? Hell, will take at least two years to complete the project if approved!! Vancouver has high gas pump prices because of their Transit tax, abt 17 cents (?) per litre, as well as provincial and federal taxes which were in effect long before the dippers got in. Not to mention oil is measured in US dollars and the Canadian dollar is about 20% less in value. That’s no fault of the dippers. Also, there’s the seasonal refinery issue.

.Do you ever hear Campbell or his RE Guru Jergoff discuss how RE prices in Vancouver, esp high end, have been influenced in a big way by dirty money coming from South East Asia, often washed in local casinos and then with much of it ending up buying high end RE in the BC lower mainland? . Or,how a lot of it goes towards other criminal elements responsible for the fentanyl crises in BC? Much of this having occurred under the former Liberal premier, Crispy Crunch..This has recently been documented by many sources:

https://globalnews.ca/news/4149818/vancouver-cautionary-tale-money-laundering-drugs/

Why don’t Mr Campbell and his side kick Mr Jergoff discuss this? Is it because the previous Liberal government encouraged money laundering in local casinos or at least turned a blind eye to this activity because it pumped a lot of $$$’s into the Liberal govt. coffers?

Mr. Campbell is crying likely because some of his RE specs have gone south along with that of many other folks. Like RE is supposed to always go up?? He calls himself an economist but has he been blinded by the huge paper RE profits he and others have enjoyed the past decade in Greater Vancouver?.Now he’s likely underwater with some of them so he’s in a panic and lost not only a lot of $$$’s but also his objectivity. The ol’ green eyed monster!!…GREED!!

And no, I’m not a dipper and didn’t vote NDP in the last election.. I’m conservative philosophically which is how I lead my life, thus currently have no one provincially to represent me…but that’s ok…because they too would likely have to compromise their principles to get re-elected. I don’t have to compromise mine…

But I do know one thing as I’ve seen it happen before. Real estate in BC especially the Island, Okanagan and lower mainland has a long way to drop before some normalcy is reached. And historically, that’ll likely take years. By then, real estate could again become a dirty word…

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-housing-archives-1.3783346

#26 IHCTD9 on 05.06.18 at 7:41 pm

So Jen has no idea what Al makes, no idea what his pension amounts to, but knows he’s bad with money…

Tell me how this is supposed to not end in a hail of fire and brimstone somewhere down the line?

How do you plan for investing, big expenses, and retirement when no one knows what the cash flow is ever? Do they have to sit down and negotiate who pays for the car repair bill every time?

Since Jan 2016 till now, I blew through over 20 grand on toys. I bet Al would like to blow 20 g’s on toys too – does he think Jenn will object? Is that the problem? Don’t want to risk spending plans being kiboshed by differing opinion? She might be right sometimes Al…

IMHO, you can’t have secrets in marriage. Put it all in to one account, and draw EVERYTHING from there. You’ll both always know where you’re at, and where you’re headed.

Now… Hopefully, they both have each other’s phone passwords…

#27 Reality is stark on 05.06.18 at 7:42 pm

As far as I am concerned gold is a barbarous relic. However when I went through my divorce it came in handy. Since she began fooling around I began accumulating physical gold. I took delivery and buried it up north at my parents cottage. I was buying around $300-$400 an ounce and managed to purchase about $500,000.
She rarely worked but cried in court and the judge gave her the house (a small place) and some cash. She and her lawyer laughed as they felt they thoroughly screwed me and I would be sleeping in the car. I sold the gold around $1400 an ounce.
You have to lay low for a while to make it work. I always tell her she sent me to the poorhouse because she isn’t faring too well these days.
According to Esther Parel infidelity is pretty much a given in modern marriage so you need to get creative.
It’s all nice and good to follow the advice in the article to split income but spousal trust is on the decline for a reason and a plan B never hurts.
Having a friend in the gold business is worth it’s weight in gold.

#28 crowdedelevatorfartz on 05.06.18 at 7:48 pm

@#23 Fake News Indeed!
“Please tell us what was “fake” about the Govt Workers in Canada imploding the taxpayer with their cushy GOLD PLATED pensions in a couple of years.”

*****

Sometimes, when hearing the painful truth…the only rebuttal is “trolling”, “fake news” , etc.

I dont think the Govt employee pensions will crash….but it will be a slow, inexorable decline in “perks” a la medical/drug/eyewear slowly being cut off.
Then the inflation indexed pensions will go.
Then , as the retired, elderly, govt employee pensioners dwindle to an insignificant voting block……(10 years tops?)……the politicians will have no compuntion to throw them to the financial wolves for the sake of votes……
I can hear future PM Doug Ford say to a election crowd, “Garanteed Pensions? Nothing’s garanteed in this life! Toast if I become PM!”
And then the pensioners will sue for their “rights” to get their garanteed govt pension that they did not pay 100% into (60%? 70%?) with the obligatory taxpayer funded “top up”…… and on and on it will go.

#29 Loonie Doctor on 05.06.18 at 7:51 pm

Great post Garth. Good income splitting strategies available to anyone. My wife and I have followed these strategies for many years thanks to reading your blog.

We also have a taxable account attributable to my much lower income spouse that we put her income in to invest. We decided to ramp that up a few years while watching T2 on the campaign trail vowing to go after small business income splitting. Glad we did. One thing that we also did when renewing our mortgage a couple of years ago was use the excess home equity as an investment loan to her that she has used to plump up her taxable account. She pays the interest and we have kept careful records. Leverage to invest is not for everyone and has risks (that we are ok with in our situation), having the returns taxed at a lower rate in her hands helps improve the risk/reward for us further.

#30 DDDDDDDDD Stormy Investments on 05.06.18 at 8:05 pm

You betcha – “Sleep together, invest together.”

Pay up Donnie… the world doesn’t want to see your junk…..

#31 Doofus on 05.06.18 at 8:12 pm

I don’t understand this “borrow from the bank of love” bit. Can’t I just give my wife 500k to invest? Why would she borrow it?

Attribution rules. – Garth

#32 Keen Reader on 05.06.18 at 8:28 pm

#23 Fake News Again on 05.06.18 at 7:21 pm

Wow, definitely getting excited while trolling… Fake “medal story”, nothing fake about my paid-for and well-deserved pension. Unlike you, I don’t broad-brush all government workers, especially since many of my ex-colleagues (pilots, engineers and senior leaders) are top-notch individuals who have made numerous and significant contributions, and continue to do so in their civilian careers – as I do.

As for “imploding the system”, I definitely pay more in taxes than I receive in pension, thanks to Garth’s valuable tips over the years. Can’t fix the world, but I am quite proud of my accomplishments and where I am now in life. Hopefully you find your own peace!

#33 This post is FF Approved on 05.06.18 at 8:32 pm

#27 Reality is stark on 05.06.18 at 7:42 pm

As far as I am concerned gold is a barbarous relic. However when I went through my divorce it came in handy. Since she began fooling around I began accumulating physical gold. I took delivery and buried it up north at my parents cottage. I was buying around $300-$400 an ounce and managed to purchase about $500,000.
She rarely worked but cried in court and the judge gave her the house (a small place) and some cash. She and her lawyer laughed as they felt they thoroughly screwed me and I would be sleeping in the car. I sold the gold around $1400 an ounce.
You have to lay low for a while to make it work. I always tell her she sent me to the poorhouse because she isn’t faring too well these days.
According to Esther Parel infidelity is pretty much a given in modern marriage so you need to get creative.
It’s all nice and good to follow the advice in the article to split income but spousal trust is on the decline for a reason and a plan B never hurts.
Having a friend in the gold business is worth it’s weight in gold.

Now that’s the kind of gold digger FF would have approved!

#34 Ace Goodheart on 05.06.18 at 8:33 pm

The new mentality seems to be sex first, ask questions later.

Which is fine. Get to know each other gradually. While at the same time enjoying all the important stuff.

The old folks don’t see it. Back when they were toddlers on the dating scene, there were all these rules…..

I have a bunch of millennial friends, a situation that resulted from where I work. These people are not 1970s dating partners. They are very different. They have a “collective consciousness” which I have never seen in the old folks. They “hook up” for fun. What used to be taboo is now as normal as having a drink in a bar.

The thing they have problems with is not sexual. That is easy for them.

They have problems with secrets, finances, opening up their lives. That is the big thing.

These people are different. Figure them out, and you can make a ton of money. They are not like the old folks. At all…..

#35 Bytor the Snow Dog on 05.06.18 at 8:47 pm

Ask any man who has gotten divorced how your advice stacks up Gartho.

I don’t blame men for hiding their financials these days.

#36 Keith in Rio on 05.06.18 at 9:06 pm

All the millenials I have been acquainted with are absolute total and utter disasters with their money. Avocado toast and all that.

I cannot imagine putting two of them together financially as Garth is suggesting.

#37 spot on on 05.06.18 at 9:53 pm

Your best offence is DEFENCE!!!!

So explain the rules when you get the phone call from the DIVORCE LAWYER??

And your both sitting on all this cash in a mutual account and collecting your pension is not too far away.

…………

i stopped reading this blog entry midway

lol

#38 Financial Orchid on 05.06.18 at 10:22 pm

Don’t think millennials married or common law are planning to grow old together in that case.
If a marriage lasts 15, 20, 30 years and bears grown, healthy , independent children is that still considered failure?

Pretty sure by then a lot of couples crave individual lives again. Some boomer couples still enjoy traveling and enjoying their golden years together yet I see overwhelming of them prefer pursuing their own interests by their 50s 60s if not earlier after the more demanding parenting years are behind them. Why shouldn’t they if the kids are grown right?

One job, one wife, one God was the preaching in prior generations but that doesn’t seem to be the case today.

Maybe millennials are viewing marriage more of a long term contract rather than the only marital contract and if it isn’t the last one shouldn’t each party be able to maintain the level of lifestyle pre separation?

#39 Oft deleted much maligned on 05.06.18 at 11:16 pm

When I married my young bride many years my junior I made a point of giving her everything. I bought her a house for cash. I made sure she didn’t have to work, unless it was play. She was a working lingerie model, doing some movie extra stuff….just fun. You buy her all the time she needs to get settled and be happy. I could do this because I was the kind of guy you could throw out of a plane naked and be just fine…..manly as hell. By the time I was thirty two when I married my 19 year old model I’d done business in dozens of countries.

It turns out my little model also had a rocket science IQ and became an engineer …and then a computer scientist teaching at a big university. She may have done all this anyway but I think when you give your wife everything it gives her confidence arising from security.

So….want a happy life….create the circumstance to have a happy wife. Make lots of money and give it away. You might wonder why some older guys have incredibly young hot wives….in many cases like mine, the girls are extremely happy because they feel entirely safe and secure. Ask any caveman….this is how you attract hot chicks and why they stick around. Be a man….don’t marry a girl partner to share the rent. It’s natural that they’ll scoot as soon as a better offer comes along.

#40 Parksville Prankster on 05.06.18 at 11:44 pm

As Steve Martin once said, ‘Love is one of the most wholesome, beautiful, natural things that money can buy’.

#41 RiddleS on 05.07.18 at 12:12 am

Riddle me this, following on from your advice – is there any value is setting up a non-registered joint investment account BEFORE both partners RRSP and TFSA’s are maxed out?

#42 Boombust on 05.07.18 at 12:18 am

#25 Alice in Wonderland

Michael Campbell. What a laugh. Furrowed, knitted brow, pursed lips, serious tone. Ugh.

The biggest phoney out there. And no, I certainly wouldn’t seek “investment advice” from a guy like him.

I hope he and Ozzy Jurock lose their shirts in this unfolding collapse.

#43 jane24 on 05.07.18 at 12:24 am

This is all so very true Garth. When I married in 1978 we immediately made all of our life joint as that was the point of getting married. In fact I have always handled the family finances for my Italian husband as that is the way it is in Italy apparently. Mama rules.

In comparison my two married daughters keep separate finances with their husbands and know very little of what the other one has. They seem to think it has something to do with women’s rights. I disagree and point out how complicated they are making their lives. In the life of a family one partner is always working and/or earning more for many family or career reasons. Very hard over 50 years to decide who owns what.

#44 WUL on 05.07.18 at 12:33 am

Turner,

Nicely done. Thx.

WUL

#45 NoName on 05.07.18 at 12:41 am

My younger one and I went to see Avengers Sunday afternoon… Was I ever disappointed with movie and marble comics.
Good thing we didn’t pay for tickets went in on points.

#46 Mark on 05.07.18 at 1:05 am

“#24 Mark on 05.06.18 at 7:24 pm
This is incredibly interesting and useful information. “

Also useful information is that you “Mark” and I “Mark” are not the same person.

Just in case anyone was/is confused by the posts recently. I do not manage money, especially of others. Even for family. Too many minefields.

#47 Millenial1982 on 05.07.18 at 1:06 am

Wish the income splitting rule/tax deduction the conservatives had was still around. Liberals no respect for the stay at home parent. They keep kids out of the daycares that have no room for more kids that the working families need. Trudeau fired 2019.

#48 dirtydebtor on 05.07.18 at 2:22 am

Garth, free sex?

you mean there is supposed to be sex in a marriage?

#49 Fake News Again on 05.07.18 at 2:29 am

Keen Reader on 05.06.18 at 8:28 pm
#23 Fake News Again on 05.06.18 at 7:21 pm

Wow, definitely getting excited while trolling… Fake “medal story”, nothing fake about my paid-for and well-deserved pension. Unlike you, I don’t broad-brush all government workers, especially since many of my ex-colleagues (pilots, engineers and senior leaders) are top-notch individuals who have made numerous and significant contributions, and continue to do so in their civilian careers – as I do.

As for “imploding the system”, I definitely pay more in taxes than I receive in pension, thanks to Garth’s valuable tips over the years. Can’t fix the world, but I am quite proud of my accomplishments and where I am now in life. Hopefully you find your own peace!

______

You don’t pay taxes. Your PAID with tax dollars. Govt does not “create wealth”. It only steals it more and more everyday with increased taxes. But you don’t know that because you sit around all day like the elitist snob you are. I feel sorry for you…..

#50 NoName on 05.07.18 at 2:31 am

WTI oil above 70$ first time in last 4 yrs.

https://imgur.com/a/12wjcPf

#51 Oft deleted much maligned stock picker on 05.07.18 at 2:38 am

If you’ve been smart you’d have been buying the go go Asian currencies . You would have already made twenty percent on Thai Baht vs Trudeau Loon. With Trudeau killing energy and Poloz killing the
Loon FX has been like shooting fish in a barrel. I’m going to Bali next weekend for the hundredth time ….on the cuff against the weak Loon and Baht that I transferred here long ago. Sux to be a Trudeau “prisoner of your own currency” while foreigners are buying your houses for pennies on the dollar.

#52 NoName on 05.07.18 at 3:28 am

Iran running out of the money, path they on not good.

XE sad 1000irr buys 2 us ¢. (1us $ = 42,000 irr).
What I am reading on black market 1$ =75,000irr.

If nuc. deal. kaput 1$ = 150k IRR on no time.

Russian economy smaller than Canada’s, and we know how good we are doing with 1/3 of population and next to nothing military spending.

Few days ago trupm sad he won’t tolerate artificial hi oil prices, I hope he opens a spigots soon I need a gas for both car… Oakville price 132.9

#53 Keen Reader on 05.07.18 at 6:50 am

#49 Fake News Again on 05.07.18 at 2:29 am

Indeed, I was part of elite groups for most of my career! Many of my colleagues earned their pensions through life and limb, earning bravery medals and MSMs as part of their “useless jobs”, as you called them. The GG certainly did not agree with you when he pinned mine, nor the several people whose lives my crew and I saved. Here is some reading material for your consideration:
https://www.gg.ca/document.aspx?id=17051&lan=eng

Obviously there are bad apples and lazy people in any organization, be it the military or the cutting-edge company I now enjoy working for. No group is perfect, yet I have and would again trust my life with many of the remarkable individuals you have no qualms about disparaging.

Peace!

#54 Bezengy on 05.07.18 at 7:08 am

My wife has all the smarts in our family, I just take care of the money.

#55 dharma bum on 05.07.18 at 7:33 am

“Marriage is three parts love and seven parts forgiveness of sins.”

~ Lao-Tzu

#56 Stormy Daniels on 05.07.18 at 7:39 am

Garth, where is my payment?

What happened between you and me and Bandit that day will sell a lot of ads for whoever buys the story if I don’t hear from you, very soon.

#57 Rational Observer on 05.07.18 at 7:48 am

#43 jane24 on 05.07.18 at 12:24 am

In the life of a family one partner is always working and/or earning more for many family or career reasons.

——————————

And yet the Canadian government penalizes couples on single incomes with massively higher taxes. Perhaps someone from the CRA (current or former) would like to comment on why Canada screws families in this manner.

#58 NoName on 05.07.18 at 8:08 am

I am not fan of Katherine Wind, but me thinks tonight debate wind hulk, ford loki.

While we are on topic of provincial politics, last night I talked to some of my cousins, smoking man cousins, Melanias cousins every one of them disappointed with doggie kicking out Tanja…

Provincial conservative approach to this election mind boggling.

#59 CJBob on 05.07.18 at 8:15 am

#21 BlogDog123 on 05.06.18 at 6:37 pm
And remember to declare “successor holder” for both you and your spouse’s TFSAs. Much more flexible than a simple beneficiary designation.

The main benefit is you can continue sheltering that TFSA money in your deceased spouse’s account (you are the holder after he/she passes away). Exanple, your spouse has $50,000 invested in equities TFSA, passes away, then 20+ years later more than $200,000 in there tax free for you. A different scenario (don’t maintain that tax sheltered room) if you don’t declare successor holder.
______________
This is the best piece of advise I’d read in the comments section; mind you the bar is set pretty low around here. Thanks.

Here’s a link with more details:
http://www.moneysense.ca/save/investing/tfsa/successor-holder-tfsa/

#60 fancy_pants on 05.07.18 at 8:23 am

11,000 homeowners are at risk of losing their properties after being trapped on interest-only mortgages they can not afford to repay

http://www.dailymail.co.uk/news/article-5698723/11-000-homeowners-risk-losing-properties-trapped-mortgages.html

As a whole, we are so screwed economically. All this artificial rate suppression is coming to a headway, there and here in the west.

Buckle up as we are on a collision course with hyperinflation … when it all unravels, anything goes. Try double digits for a loaf of bread. Rates will follow in a desperate attempt to control inflation and the value of $. RE will take the hit on that front. Increased taxes, defaults everywhere, gov’ts picking pockets of anyone with money. The news will be nobody saw this coming.

Head in sand, fingers in ears – la la la la, I can’t hear you. Yeah, that’s what they said in Venezuela and Argentina who are now experiencing rates of 40% chasing runaway inflation.

We are charting the same path. Economies fueled by debt eventually run out of money.

#61 NYCer on 05.07.18 at 8:25 am

Yes, besides compatibility, sharing finances and open and honest discussion is so key.

Similar goals as well.

Ironic how I assumed my brother and his wife were open and concentrating on saving money to buy a house one day and being more frugal and cautious of spending.

I find out yesterday that they just bought a $30k new car because they need 2 cars. I asked them why do they need two cars, they rent a condo in Etobicoke. She works downtown (subway) and he drives to Toronto.

I tell them to rent in North York or somewhere along the subway line. She refuses.

They are now moving back to Mississauga to rent a townhome and they NEED a second car.

That $30k would make some dent in a downpayment. SIGH.

As for us, yes open financials is key, we track all spending together and review our financials monthly and discuss how we are on track towards our financial goal.

Shame most of the marriage financial tools may not be worthwhile for us since : we both make the same income, we won’t have kids. Although my pension will be much larger so maybe we can split that.

#62 Tater on 05.07.18 at 8:46 am

#27 Reality is stark on 05.06.18 at 7:42 pm
As far as I am concerned gold is a barbarous relic. However when I went through my divorce it came in handy. Since she began fooling around I began accumulating physical gold. I took delivery and buried it up north at my parents cottage. I was buying around $300-$400 an ounce and managed to purchase about $500,000.
She rarely worked but cried in court and the judge gave her the house (a small place) and some cash. She and her lawyer laughed as they felt they thoroughly screwed me and I would be sleeping in the car. I sold the gold around $1400 an ounce.
You have to lay low for a while to make it work. I always tell her she sent me to the poorhouse because she isn’t faring too well these days.
According to Esther Parel infidelity is pretty much a given in modern marriage so you need to get creative.
It’s all nice and good to follow the advice in the article to split income but spousal trust is on the decline for a reason and a plan B never hurts.
Having a friend in the gold business is worth it’s weight in gold.

—————————————————————

So you couldn’t satisfy your wife, and you perjured yourself. Wow. You are quite the winner!

#63 WileE Toronto on 05.07.18 at 8:47 am

@27 Realty is Stark

Good for you for protecting your assets and recovering over time from the thieving B,

PS I have been looking in cottage country , where would I find this cottage???? : ))))))

#64 Gravy Train on 05.07.18 at 9:06 am

#49 Fake News Again on 05.07.18 at 2:29 am
“You don’t pay taxes. You[’]r[e] PAID with tax dollars. Govt does not ‘create wealth’. It only steals it more and more everyday with increased taxes.”

Why don’t you just manage your personal financial affairs so as not to pay any taxes? What! Are you a dummy? Go consult a reputable tax accountant, you stupid little twerp!

Oh, that felt good! Was it good for everyone else? :)

#65 Bytor the Snow Dog on 05.07.18 at 9:14 am

@62 Tater- Excellent summary of the entitled feminist attitude prevalent these days.

Men stay away from this one.

#66 Yorkville Renter on 05.07.18 at 9:14 am

a few interesting ideas… I now aspire to loan my wife $$$

some day, it’ll happen!

#67 CJBob on 05.07.18 at 10:16 am

#57 Rational Observer on 05.07.18 at 7:48 am
——————————
Perhaps someone from the CRA (current or former) would like to comment on why Canada screws families in this manner.
____________
Ahh, the CRA’s job is to enforce and manage the laws that are enacted by the elected federal government but keep tilting at windmills if it makes you feel better.

#68 Kevin on 05.07.18 at 10:19 am

Thanks Garth.
My understanding is that if a spouse stays home to raise the kids, run a daycare, or just stay home to have slippers and meals ready. They can apply to the government to have their cpp topped up with years they were short on?….

#69 WM on 05.07.18 at 10:37 am

Who the hell even considers marriage in 2018?

#70 NEVER GIVE UP on 05.07.18 at 11:17 am

#25 Alice in Wonderland.. on 05.06.18 at 7:26 pm
Anyone listen to Money Talks, CKNW Vancouver on Saturdays, where Mike Campbell, brother of disgraced former Liberal Premier of BC, Gordon Campbell, has for some time now been on a rant along with Ozzie Jergoff, self proclaimed local real estate expert, about how the NDP is not making real estate more affordable to new RE purchasers in BC, particularly due to the proposed speculation tax? How all the federal and provincial proposals and laws to deflate the RE prices have in effect been harmful to most Canadians!! Yep, that’s because those measures have caused prices in most locals across this country to soften or drop. In some places big time as Garth has reported. These two don’t give a rat’s a$$ about affordability or the ordinary guy struggling to qualify for a mortgage!!

Campbell is the same disingenuous dude who rants about how the high gas price at the pump in Vancouver is due to the Dippers holding back the Kinder Morgan pipeline extension…Like does anyone think that pump prices in Vancouver would drop if the agreement was signed today?? Hell, will take at least two years to complete the project if approved!! Vancouver has high gas pump prices because of their Transit tax, abt 17 cents (?) per litre, as well as provincial and federal taxes which were in effect long before the dippers got in. Not to mention oil is measured in US dollars and the Canadian dollar is about 20% less in value. That’s no fault of the dippers. Also, there’s the seasonal refinery issue.

.Do you ever hear Campbell or his RE Guru Jergoff discuss how RE prices in Vancouver, esp high end, have been influenced in a big way by dirty money coming from South East Asia, often washed in local casinos and then with much of it ending up buying high end RE in the BC lower mainland? . Or,how a lot of it goes towards other criminal elements responsible for the fentanyl crises in BC? Much of this having occurred under the former Liberal premier, Crispy Crunch..This has recently been documented by many sources:

https://globalnews.ca/news/4149818/vancouver-cautionary-tale-money-laundering-drugs/

Why don’t Mr Campbell and his side kick Mr Jergoff discuss this? Is it because the previous Liberal government encouraged money laundering in local casinos or at least turned a blind eye to this activity because it pumped a lot of $$$’s into the Liberal govt. coffers?

Mr. Campbell is crying likely because some of his RE specs have gone south along with that of many other folks. Like RE is supposed to always go up?? He calls himself an economist but has he been blinded by the huge paper RE profits he and others have enjoyed the past decade in Greater Vancouver?.Now he’s likely underwater with some of them so he’s in a panic and lost not only a lot of $$$’s but also his objectivity. The ol’ green eyed monster!!…GREED!!

And no, I’m not a dipper and didn’t vote NDP in the last election.. I’m conservative philosophically which is how I lead my life, thus currently have no one provincially to represent me…but that’s ok…because they too would likely have to compromise their principles to get re-elected. I don’t have to compromise mine…

But I do know one thing as I’ve seen it happen before. Real estate in BC especially the Island, Okanagan and lower mainland has a long way to drop before some normalcy is reached. And historically, that’ll likely take years. By then, real estate could again become a dirty word…

http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-housing-archives-1.3783346
===================================

Nice post, Filled with honesty.
I too am a fiscal conservative at heart but principled first.
Money isn’t everything.
Only for the weak, and morally bankrupt.

#71 Samantha on 05.07.18 at 11:43 am

I never understood how two people can be married or common law partners and not trust each other with money. I don’t see how would that work in the long run at all.

#72 Dave Ahem on 05.07.18 at 11:57 am

Money is the last taboo. We share every aspect of our lives publicly on social media except our finances. Why? Because they are the only thing we’re ashamed of. I talk openly about how much I make and my holdings with anyone who wants to chat because I work hard on those things, do them well and I don’t measure my self worth based on either. (only my net worth)

#73 cmj on 05.07.18 at 12:16 pm

one of the pillars of a relationship is trust. If couples aren’t open about their finances then no wonder many relationships are wobbly -married or not

#74 Calgary Rip off on 05.07.18 at 12:20 pm

Your advice will likely fall on deaf ears.

The twenty year old and younger crowd is severely warped by instagram and snapchat, to disfunction. From the comments I see on youtube seems most of that generation is crazy. And this is shown by they don’t trust their partner financially either. Don’t waste time on them, for myself at 46 I have probably 50 more years tops, then that young generation is someone elses problem.

These attitudinal problems are a direct result of the snapchat and instagram problem. Those creepy phone apps cause mental illness. And that shows by what was written in this post. Who wants to live with someone and yet doesn’t trust them? Psychos, that’s who. Doesn’t matter how much money any of them make, they are rotten to the core. Good luck to them in the afterlife. Even if they get into Heaven they wont like it there.

#75 jess on 05.07.18 at 1:24 pm

‘binary option scam

The biggest scam on Earth’ defrauds Canadians looking for investments
https://www.ctvnews.ca/w5/the-biggest-scam-on-earth-defrauds-canadians-looking-for-investments-1.3766888

Missing trader fraud]
https://www.occrp.org/en/27-ccwatch/cc-watch-briefs/8039-eu-police-bust-vat-fraud-network-that-stole-over-70-million

This case, a so-called VAT carousel fraud case, began several years ago with an investigation in Spain. The OCG, mainly composed of German, Spanish, Italian and Portuguese nationals, created a network of computer and electronics companies throughout Europe to divert the illicit profit yielded in Spain. The criminals managed to avoid VAT payments in Spain and yet receive VAT reimbursements through the companies set up in other Member States by simulating their business operations.

The group operated through tens of shell companies throughout the EU and the United States.

“The criminals managed to avoid VAT payments in Spain and yet receive VAT reimbursements through the companies set up in other Member States by simulating their business operations,” Eurojust said.

It also had a production center where they created the false invoices to conduct the VAT fraud on the electronic products as well as luxury vehicles being imported below invoice price.

Europol found the group had issued almost $300 million in fake invoices in three years….

======
public beneficial ownership registries. Databases in which citizens can easily access and explore the owners of companies. Not the nominee director, not the fake shareholder – the real owner. The person at the center of the matryoshka-like corporate structures, or, as experts refer to them: the ultimate beneficial owner of a company.

A database of actual owners would enable companies to check with whom they are actually doing business.
===============
uk
REJOICE: The hard right have been wiped out in
https://leftfootforward.org/2018/05/rejoice-the-hard-right-have-wiped-out-in-the-local-elections/local elections

#76 CJBob on 05.07.18 at 2:15 pm

#74 Calgary Rip off on 05.07.18 at 12:20 pm
Your advice will likely fall on deaf ears.

…severely warped…most of that generation is crazy… Don’t waste time on them…attitudinal problems…Psychos, that’s who…are rotten to the core…
__________
So you’re saying the younger generation isn’t listening to you? Jeez, I wonder why…

#77 Mountain_camper_in_tent on 05.07.18 at 2:17 pm

Many thanks Mr Turner.

I’m going to print this article and put in my early retirement planning binder.Im 45 and would like to retire at 60 if possible.My wife stayed out of workforce many years to raise kids.So this info is very useful.

Regard
Camper

#78 Stan Brooks on 05.07.18 at 3:04 pm

This place is getting truly delusional.

https://ca.finance.yahoo.com/news/city-north-toronto-sells-itself-125121045.html

Next thing you would hear is how Raptors will win the NBA title and the Maple Leafs NFL THIS YEAR (probably by disqualifying all other teams in NBA and NFL).

Sad, pathetic, delusional.

#79 Tater on 05.07.18 at 4:04 pm

#65 Bytor the Snow Dog on 05.07.18 at 9:14 am
@62 Tater- Excellent summary of the entitled feminist attitude prevalent these days.

Men stay away from this one.
—————————————————————–

I’m a guy, actually. A pretty successful and happily married one as well!

I didn’t realize that it was a feminist position to not perjure oneself and to meet the needs of your spouse. But you keep on hiding assets and getting cuckolded. Your type seems to enjoy that.

#80 Rational Observer on 05.07.18 at 9:40 pm

#67 CJBob on 05.07.18 at 10:16 am

You might wish to read the section “About Garth Turner”.
It is at the top of the page.

But your second comment is on point. It is indeed a waste of time to tilt at windmills.

#81 LuckyMick on 05.07.18 at 11:04 pm

Are you allowed to receive financials gifts from a friend, what’s the protocol on that can ur bestie just cut you a cheque for 100k and write I love you on he memo and its tax free?

#82 Westcdn on 05.08.18 at 9:44 am

Life is a funny thing for me. If you look up the word cheap in a dictionary, there is a good chance you will find a picture of me. There were rumors I was the son of my father’s brother. It could explain why he was mean to me but then he wanted me to be tough and independent – same with my mother. John Wick is one of my movie favorites – it was just a f..g dog.

I volunteered to install stoves in Guatemala. I paid for them although I could have sold the tax credit. The people would smile at me – turned out my surname meant parking lot down there. My eldest daughter kept my name which makes the other father angry. He is another guy I have to walk on eggshells. I don’t like that. My conversations with her usually started with oh Dad. Anyway, I will stay the course and live for the word Dad. I am pretty good at getting things done despite disagreements.