Hang on

CAT modified

For a few terrifying moments, it looked like Ted would have a cow. “This is freaking outrageous,” he yelled at me through the phone, without actually saying ‘freaking.’ “How can these pirates get away with it?”

Because you agreed to it, I said, unhelpfully. He moaned.

Ted just got an email from his financial advisor, a nice lady in Burnaby with lots of crispy letters after her name, telling him if he wanted to change investment companies, he’d have to cough up $8,600 in additional fees, or about 4% of his entire portfolio. This, of course, was in addition to the 2% he’s been shelling out regularly for the past few years to own mutual funds in this company which shall, mercifully, remain nameless (Investors Group).

This is what happens when you buy mutual funds which are DSC. Those deadly consonants mean ‘deferred sales charge’ and they describe a mutual fund prison, complete with emotional chains and rats. Because the ‘advisor’ (a.k.a. salesperson) gets a commission upfront from the company (instead of you) when you buy these assets, the fund tries to ensure you stick around paying ongoing management fees for seven years so the investment can be recouped. If you try to escape early, you’re whacked.

Getting financial help is a wise thing to do. Stumbling into a morass of fees and charges is not. Here are a few more things to be aware of.

MERs. More evil letters, this time meaning ‘management expense ratio,’ which translates into (of course) fees. This is how mutual funds get paid for putting your money in a giant pool with other people’s cash and then having a manager you’ll never meet moosh it around. Fees for more passive funds, such as those investing in bonds, are fairly low but for equity funds they can be 2-3%. For segregated funds (insurance products which guarantee certain payouts, almost always unnecessary) the fees can top 5%. Yikes. And most fund MERs aren’t deductible from taxable income.

Imbedded fees. This is how ETFs (exchange-traded funds) get the revenues they need to operate. They’re typically a fraction of what mutual funds charge because no manager is trying to add alpha (that’s the special sauce giving you greater than market returns). So an ETF may have an embedded fee of far less than a half of one percent. For example, XIU – the exchange-traded fund which offers ownership of the biggest 60 companies on the Toronto stock market – has a fee of 0.18%. Way better, but still not deductible.

Trading fees. Lots of people who think they are little Warren Buffetts buy and sell stocks or funds through online brokerage accounts, many because they don’t want to pay others for the service. Fair enough. If you know what you’re doing, plus have the time and stomach for it, this can work out well. But it’s not free. In addition to embedded fees for various assets there are also trading charges – like $5 a pop at places like Scotia iTrade, or $1 per $1,000 face value for bonds. But to get the low rate, you have to trade at least 150 times every three months! So, who’s got time to go to work?

Transactional fees. Some big advisory companies, like the brokerages owned by the banks, offer transactional fees – so you only pay for things actually done on your behalf, like buying or selling securities. That’s cool because you also get advice on what the smart moves might be. But the fee isn’t small – often about $100 a trade. And while it is deductible from taxable income, it sure makes it expensive when you want to rebalance a portfolio, which could include a dozen or two moves. Figure that out.

Fee-for-service. There are advisors – not many, but some – you can hire by the hour like, er, a power post-hole digger, to tell you what to do. They look at your assets, ask a bunch of questions, then provide a suggested portfolio. Not cheap – about $300 an hour, or $5,000 or more for a financial plan. Then, of course, you still need to have the plan enacted, the securities bought and trades executed at the right time, at additional cost. This also means every time you think a rebalancing is in order, you have to pay more fees for an opinion. Besides, you have nobody to blame.

Fee-based. This person refuses to collect commissions (like the mutual fund people), and instead gets a fee based on the amount of money handed over for investing. Never pay more than 1% for portfolios of less than a million, and expect a discount above that. There also should not be any additional cost for trades or tax advice or a full financial plan. Rebalancings should be done automatically for you – at no cost. And outside of your registered accounts, the full fee is deductible for tax purposes. Never write a cheque upfront, either, to have a plan done  or receive tax avoidance advice – the advisor shouldn’t start charging a small monthly amount until everything is set up. Plus, demand the guy pay for any transfer fees that another company dings you to move your money.

Or, you can do nothing. Or, like the wackos who come here, embrace Bitcoins. Or, make mom happy and buy a condo. Just ensure you check her credentials.

168 comments ↓

#1 Oceanside on 09.02.14 at 6:24 pm

Interesting topic today, what are the realtor haters going to do for 24 hours. Ha Ha…

#2 ronh on 09.02.14 at 6:25 pm

Mutual fund prison, how true.

#3 totalinvestor.com on 09.02.14 at 6:25 pm

Good info, more articles like these.

http://postimg.org/image/5j5msn437/

#4 ShawnG in TO on 09.02.14 at 6:32 pm

My financially illiterate friend also had the same problem just last month. I don’t even know how she found the IG office. There was nothing I could do by the time she came to me. I suggested just bite the bullet and transfer out her savings. The ETF perform better in the long term anyway.

#5 Bill Gable on 09.02.14 at 6:32 pm

If you don’t pay attention, you get your pockets picked – as sure as if you were standing at the Eiffel Tower.
I am constantly stunned and amazed at pals that will sign on for some financial deal and not read anything to do with the deal.

I am of the Boomer cohort and I can say with alacrity, a ton of my friends are sweating over heavy debt and terrible job insecurity.

Many of my friends are school teachers, here in Vancouver. Strike = looking for work at Home Depot. If this goes on for a few months, it is going to be really ugly.

If I was taking you sailing, I would ask you to take the tiller of my C and C – while I put a Reef in the Main Sail.

Heavy weather is coming, and you better be ready to bail like hell.

The Black Swans are more numerous than enemies of Stephen Harper.

#6 Mark on 09.02.14 at 6:38 pm

“XIU – the exchange-traded fund which gives you ownership of the biggest 60 companies on the Toronto stock market – has a fee of 0.18%. Way better, but still not deductible.”

Actually the 0.18% fees of XIU are fully deductible against income from the underlying securities of the mutual fund trust. Although you can’t personally deduct such fees, the fund is able to do it against amounts received by the fund as ‘income’ or ‘dividends’, and there is a slight amount of return of capital in the yearly distribution that represents this. So to say that deductibility of management expense does not exist is simply not true (although it cannot be taken as a personal deduction in the hands of the trust beneficiary!).

Additionally, if one is a large holder of XIU, one can obtain management fee rebates from BlackRock which brings the 0.18% MER down even further. Furthermore, XIU receives and attributes revenue from securities lending to its unit-owners. While almost no brokerage account holding individual securities in Canada provides any customer rebate for securities lending activity.

#7 Robert Agnew on 09.02.14 at 6:39 pm

A few friends are signed up with weasel advisors- very high mers, invested in 15 mutual funds – definitely being taken to cleaners. Financial illiteracy is high in this country – never trust baloney from paid sales agents flogging products without reading fine print. Trust house selling floggers even less.

#8 OG on 09.02.14 at 6:39 pm

What’s the fee for bitcoin? Whack Os

#9 Chickenlittle on 09.02.14 at 6:44 pm

Garth, you are so right. No one talked about Bitcoin since it tanked. It must be doing well because everyone is humping it again.
I thought it was dead!

#10 my password is password on 09.02.14 at 6:44 pm

we have been getting bent over by rbc 2+ for too long now

was chicken to give it all to an advisor, but i think i know who should be managing it.

1% is about 5k.

#11 Derek R on 09.02.14 at 6:46 pm

Great free advice, Garth! This is what we come for. Thanks!

#12 Celebrity Photo Hackers on 09.02.14 at 6:47 pm

Dear Mr. Turner,

We beg your forgiveness.

Admittedly, we have attempted to bribe you in order not to disclose the nearly 2000 nude selfies you have uploaded to the iCloud this year. Our last message selfishly only reduced those demands to some Groupons.

This was not fair, we now realize.

Frankly, we are having a great deal of trouble erasing from our memories all those nude images of you and your…Member of Parliament. It is driving us all bonkers, and two of us are already preparing to stab our eyes out. No amount of viewing Jennifer Lawrence’s awesomely hot selfies can erase those indelible images of yourself from our collective consciousness.

Please sir, what do you want us to pay for those pictures, just help us take those images away from our minds!!??

We’ll pay anything, bitcoins, MERs, transaction fees, any service charges you want!!

Help us :(

#13 Bob Rice on 09.02.14 at 6:50 pm

https://ca.finance.yahoo.com/blogs/balance-sheet/canadas-housing-market-among-most-overvalued-in-the-183022085.html

#14 Sebee on 09.02.14 at 6:50 pm

Will this push to increase minimum wages that seems to be reported daily, have any meaningful impact on ratios of RE affordability?

#15 OttawaMike on 09.02.14 at 6:55 pm

How does one select a fee based adviser who is competent when there are unregulated investment gurus collecting fees out there?

http://business.financialpost.com/2012/05/03/fee-based-financial-planning-isnt-for-everyone/

There are no unregulated fee-based advisors. They are called ‘frauds.’ Just check with the IIROC database. — Garth

#16 OttawaMike on 09.02.14 at 6:56 pm

I am with you on the fee vs. commission argument but it was recently explained to me by a ‘commissionaire” that they still generate higher total returns than the fee based guys do after all is said and done.

That is an empty generalization. — Garth

#17 Smoking Man's Old Man on 09.02.14 at 6:56 pm

Fee-based advisor plus No-wife equals a happy life… :)

#18 Smoking Man on 09.02.14 at 7:03 pm

One thing I know is Canadians are cheap bastards, over schooled with a false sense of IQ

I’m in line at the LCBO the other day, two ladies in front of me in line. Both paid with debit cards, both teachers talking about the up coming season, both did not conceal there pin numbers.

I mutter out her pin, 7521 this exceptional idiot, she turns and blasts me how dare I look at her pin.

I replied, thank your lucky stars that I’m a rich alcoholic, I could have easily been desperate depraved penniless drug addict and would met you in the parking lot.

There you go teacher, perhaps you can teach that to the kids..

#19 Jim on 09.02.14 at 7:08 pm

Banks lost their usefulness to society when they stopped using deposits to back loans. Hence, they should be replaced by a non-profit government website.

#20 Daisy Mae on 09.02.14 at 7:09 pm

“This, of course, was in addition to the 2% he’s been shelling out regularly for the past few years to own mutual funds in this company, which shall mercifully remain nameless (Investors Group).”

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

LOL Love this blog! Another jab at the despicable IG.

#21 Bob Rice on 09.02.14 at 7:12 pm

@ Smokingman… “One thing I know is Canadians are cheap bastards, over schooled with a false sense of IQ”

If they WERE cheap, they’d be renting homes instead of buying crappy overpriced homes. I say they’re stupid and frivolous.

#22 Steve French on 09.02.14 at 7:14 pm

aaaahahahaha…

that was a classic Smoking Man post!

Maybe he could make it as a novelist.

#23 Flawed on 09.02.14 at 7:15 pm

And people wonder how banks make money in a crappy environment.

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

“Each sovereign is a “bubble” unto itself, with its citizens being the internal driving force behind GDP, thus supporting the sovereign demand for $’s via taxes.

Multiple factors affect exchange rates, but a currency must maintain internal value to be accepted for global trade.

Why is a Canadian $ worth 90 % of the US $ ?”

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

Cdn is worth what it is because of confidence in the currency vs the US. The question you need to ask yourself is how did Bitcoin go from 25 cents to $500 with transaction volume growing at a nice 40% clip per year in a useless volatile currency that no one (except DISH and DELL and OVERSTOCK and VIRGIN ATLANTIC) will want to use?

#24 LH on 09.02.14 at 7:16 pm

Another good bet is VCN by vanguard.
Or VTSAX for those in the usa.

#25 Daisy Mae on 09.02.14 at 7:27 pm

#15 OttawaMike: “How does one select a fee based adviser who is competent when there are unregulated investment gurus collecting fees out there?”

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

You’re ‘looking’ at one.

#26 Happy Renting on 09.02.14 at 7:28 pm

Well, Ted, imagine if your portfolio were 10x larger. Even more pain to move it and have it managed cost-effectively. Bite the bullet and do it, you end up losing more by trying to wait for the DSC penalty period to expire.

I was very lucky and transferred my mutual fund investments out with no penalty or fee. Not sure if that’s standard for workplace plans, but if not I was certainly the beneficiary of some very forgiving policies.

#27 Happy Renting on 09.02.14 at 7:30 pm

Damn, Chickenlittle, you were first! Now #9! What happened? Was your weekend with the inlaws not nearly as awful as you anticipated?

#28 Mark on 09.02.14 at 7:30 pm

“Will this push to increase minimum wages that seems to be reported daily, have any meaningful impact on ratios of RE affordability?”

No. Increases to minimum wage will contribute to inflation, which will drive up demands of lenders for interest on their money.

#29 Daisy Mae on 09.02.14 at 7:33 pm

“…he’d have to cough up $8,600 in additional fees, or about 4% of his entire portfolio…”

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

Ted will just have to suck it up. But he needs to do it — now.

#30 sideline sitter on 09.02.14 at 7:35 pm

Timely advice for me, Garth. A Financial Advisor was recently introduced to me and gave me his $0.02. I was unaware of the ‘exit fee’, but was already turned off by the high MERs.

#31 Daisy Mae on 09.02.14 at 7:43 pm

I will be forever grateful that Garth saved ME from Investors Group. Let this be a warning to all.

#32 Fred on 09.02.14 at 7:45 pm

What’s your thought on index funds? Why pay high MER’s for someone to try and find the needle in the haystack, when you just buy the haystack?

http://canadiancouchpotato.com

ETFs are best. Couch potato is pointless without rebalancing. — Garth

#33 Nemesis on 09.02.14 at 7:46 pm

#LevitatingKitties… #EMP’sLittleKnownSideEffect. #StarFishPrime:

http://en.m.wikipedia.org/wiki/Starfish_Prime

[NoteToGT: Did I miss anything? Regrettably, I blew the satellite transponder while conducting unauthorized RadiationExperiments. Fortunately, we had a co-operative Simianaut in orbit nearby… Worryingly, his banana dispenser is getting a tad low, though.]

#34 El Barto on 09.02.14 at 7:47 pm

Hi Garth;

Once again, thank you for providing great suggestions that give many of us readers options. The downside is that my wife of many years, every morning now kisses a portrait of you that she downloaded, and I recently overheard her whispering softly to the cat, “Why can’t he be more like Garth?” … at least we’re still balanced, liquid, and diversified… I just wish the requests to “Grow a beard like Garth”, would end.

#35 Italians love real estate on 09.02.14 at 7:48 pm

Mutual funds , ETF’s , advisors salespeople in banks who the [email protected]&$ cares about any of it.

I say liquidate it all and use the money to INVEST I. A rental property or two ( land underneath it please) and “fugettaboutit ” !

You will be very well off in time !!

#36 Andrew on 09.02.14 at 7:51 pm

Another item to be aware of is the time it takes to transfer an account to another brokerage. Not only can you get dinged $100-$150 for the transfer, but since you’re about to be an ex-client, the brokerage has no incentive to expedite the process. Earlier this year I requested an account transfer and it took two months to transfer the account to Questrade.

Tom Bradley at Steadyhand Investments has blogged about the financial service industry’s disgraceful account transfer times, calling it an “industry embarrassment” .

See http://www.steadyhand.com/industry/2013/07/22/rrsp_transfers_an_industry_embarrassment/

With IIROC-regulated outfits, they have to comply within 10 days. – Garth

#37 Catalyst on 09.02.14 at 8:00 pm

I’m glad to see an article on investing.

I’m a little warren wannabe, for anyone who cares I thought I would share some insight for those who chose the go-it-alone route:

1) FX fees can destroy returns. Try and get exposure to US and emerging markets through low cost ETFs traded on the TSX.

2) Look at volumes and be aware of potential liquidity issues. Buying ETFs are not AS liquid as common stock but still pretty liquid.

3) Get some geographical and industry diversification. ETFs really are a miracle product here to be able to get great diversification with relatively little money.

4) Don’t check frequently as you will get the urge to tinker, and tinkering costs money. Rebalancing is important, but it shouldn’t more frequent than quarterly or semi-annual imho.

5) Don’t do any trading based on BNN talking heads. I have many times been quite convinced by the story they are spinning then when I go and fact check some of what they said, I am usually disappointed. I am quite convinced the people they bring on are there to talk up stocks they are looking to dump.

6) stay away from anything with a market cap of less than $2 Billion. If you have a day job, you just can’t keep up with the swings in small cap stocks to make money consistently.

7) finally, do your research. Things I look at when selecting investments are degree of leverage (BS), gross margin and operating expenses as a % of revenue trends for last 5 years (IS), and positive trends in cash from operations for last 5 years. Cash flow is my biggest one, I want to see great trends, room to cover investing cash uses without financing (capex) requirements, and if I think they can comfortably afford to increase dividends. If I am looking to invest more than $10k in a company, I will also pull their most recent annual report, find out what risks have been identified by management and how are they working to mitigate them. As an example, I almost bought shares in Neulion -NLN TSX (see points 5&6 why I shouldn’t have gotten this far) and after reading their annual statements I discovered they face many regulatory challenges that may bankrupt them at any moment.

Invest wisely fellow ‘blog dogs’

#38 Son of Ponzi on 09.02.14 at 8:00 pm

#19 Jim on 09.02.14 at 7:08 pm
Banks lost their usefulness to society when they stopped using deposits to back loans.
—————–
Credit Unions still do.

#39 Gary on 09.02.14 at 8:05 pm

8 grand is 4% of the guy’s portfolio? Either he’s 25 or he’s ##%ed…

#40 Happy Renting on 09.02.14 at 8:15 pm

#5 Bill Gable on 09.02.14 at 6:32 pm

As far as you can tell, where are your Boomer teacher friends spending their money that a strike of a few weeks means a job at Home Depot? I assume their pay is pretty decent. Where’s all that money going?

#41 Smoking Man on 09.02.14 at 8:16 pm

#22 Steve French on 09.02.14 at 7:14 pm
Maybe he could make it as a novelist.

Steve you got to be my number 1 fan…out of 30 that’s pretty good. You get free hard back copy, signed..

Here is how it all started out for me. My earliest memory of life. My son’s gf read it, laughed her guts out..

Now understands where my son gets his crazy from.

Enjoy.

http://dyslexicsmokingman.blogspot.ca/2014/03/you-dogs-what-to-know-why-im-so-screwed.html

#42 Retired Boomer - WI on 09.02.14 at 8:19 pm

Sure, you CAN get screwed, if you want to be.

Me, the cheap guy, always gravitated toward the incredibly obvious. Total Stock Market Index Funds for the equity side, a variety of Indexed terms for the Bond side.

Total cost, less than .15 % a year no transaction fees.
Like an ETF only crunchy, with caramel. Whatever the markets return, I get 99.55 or 99.90%. How BAD is that?

Rebalance once a year, rinse, and repeat. No you won’t always make money, but you will never ‘underperform’ the markets either.

#43 PR on 09.02.14 at 8:21 pm

“But the fee isn’t small – often about $100 a trade. And while it is deductible from taxable income”

Since when is commission deductible from taxable income? Thought it was added to the ACB of the security…

And where can you find a fee based advisor charging 1% max on less than $1m unless its on F class mutual funds which take the total fee back to approximately 2% or higher?

Transactional fees are deductible. Commissions are not. There are many fee-based advisors who will do exactly as I wrote for this fee. No mutual funds. — Garth

#44 Freedom First on 09.02.14 at 8:22 pm

Simple very good advice and yet so difficult for people to do what is in their own best interest.

Before I knew better, I was talking with a couple of people I was close to about mutual fund fees. They had no interest in either ETF’s or hiring a 1%er financial adviser I was dumb enough to suggest. Ok then, I said have a look at the mutual funds you own, look at the stocks in the funds, and compare them to an ETF holding pretty much the same stocks, and the fees they both charge. Neither person wanted anything to do with handling their own money, and mu suggestion brought painful looks to both their faces. Then they both had said to me that holding mutual funds gives them peace of mind. These are 2 guys in their 40’s and 50’s who have a net worth of $500,000+ and $1,000,000+. The fees they are paying boggles my mind. I never owned mutual funds, but then again, I’m the kind of guy who enjoys reading Garth’s blog, but I do know many people simply have no interest in learning anything to do with finances. Of course, most of them are “all in” on one asset, leveraged to the gonads.

#45 Happy Renting on 09.02.14 at 8:25 pm

#36 Andrew on 09.02.14 at 7:51 pm

My transfers took a month or less. Still shockingly slow, but two months is appalling.

Did your old institution sic a sales rep onto you to try to keep your business? A tip I read on the internet was to write “this is my final decision, please do not contact me” on the transfer request documents. The idea was to speed things up by skipping that step. Even if it didn’t make things faster, I was happy to receive zero wheedling calls trying to get me to stay.

#46 Smoking Man on 09.02.14 at 8:26 pm

Fee-based is the way to go. Think of me on a commission structure, I would take huge risks, thinking of my pockets first, clients get burned, Next….

Fee based, you F up, the client go’s Next…

You can’t give up the power of Next…

#47 Smudgekin on 09.02.14 at 8:30 pm

I wish we could kiss this medieval capitalism goodbye. I’m tired of sweating for feudal overlords @ Wall Street & their 1%ers who’ve bred the culture of double digit yields into corporate America. Smoke & mirroes.

Time to grow business co-ops in Canada.

#48 WileyM on 09.02.14 at 8:35 pm

Thanks so much for your dedication to this daily blog. Not only has it educated and entertained me but it pushed me to finally hire someone to manage my investments. Although I consider myself fairly knowledgeable, knowing and doing are two separate things. It takes time, energy, paying attention and a long enough timeline to recover from stupid mistakes; I have none of these. Also, it gives me peace of mind to know that, if something happens to me tomorrow, my kids don’t have to try to figure out where all the money is and then what to do with it. They will have my advisor to guide them. However, they will still have to evaluate whether they are getting good advice so I have been trying to educate them: financial books for Christmas (ask how thrilled my kids are LOL), newspaper articles left on their pillows (more thrills), emails with links to financial articles (usually this pathetic blog), and discussions about my mistakes (they love it when I confess I’ve actually been…..wrong!). I also include them in all my planning discussions with my advisor. I consider the fees well spent.

#49 OttawaMike on 09.02.14 at 8:46 pm

#36 Andrew on 09.02.14 at 7:51 pm
Earlier this year I requested an account transfer and it took two months to transfer the account to Questra

————————————————————
Yeah me to.

Scotia iTrade took forever then it took almost 6 months of me repeatedly asking for my transfer out fee receipt for reimbursement from Questrade. I had to go to my bank manager to intervene with Scotia iTrade.

#50 Smoking Man on 09.02.14 at 8:55 pm

#48 OttawaMike on 09.02.14 at 8:46 pmScotia iTrade took forever then it took almost 6 months of me repeatedly asking for my transfer out fee receipt for reimbursement from Questrade. I had to go to my bank manager to intervene with Scotia iTrade.
………

Interactive brokers, simple….

Now if a fee based advisor had half a brain, he would help you set up an account, provide training. How to buy and sell. All the instruments that go into a balanced portfolio.

Then once trained on the system. The advisor just recommends how to split the pie. Hedge, and as world events change dynamics and assist classes, the advisor. Advises

That’s to much work for me… But fiction is my next big adventure…

I finally realized why I’m taking my sweet time on publishing…

I’ve become human… I think I’m afraid to be judged..

Happens every time I stop drinking.

#51 tkid on 09.02.14 at 9:13 pm

Funny, it took me just a few days to transfer from CIBC’s investing arm over to BMO’s investing arm.

My mother, however, is investing in a mutual fund through the credit union; Harmony Conservative Portfolio (WFE) from AGF. I’ve pitched fits about this to her, I’ve tried to go subtle on this, I’ve shown her similar ETFs (XTR and AOR) so she can see the ETF listed what it was invested in … aaaaand nothing. Am I freaking over nothing? Is the HCP from AGF ok?

#52 Italians love real estate on 09.02.14 at 9:13 pm

Just think if how great it would be if all. Acadians got rid of their mutual funds , ETF’s and all that other crap and put it Into real estate !

RE prices to the moon !!

#53 Paully on 09.02.14 at 9:15 pm

If you don’t want to put your money in an IG fund, you could instead buy some IG Shares and share the benefit of those egregious fees being paid by the mutual fund holders.

#54 PR on 09.02.14 at 9:15 pm

Garth, explain to us uneducated the difference between a $100 commission charge to buy a stock/security and a $100 “transaction” charge to buy a stock/security? And how one is deductible and the other is not? (All in non-reg’d accounts of course).

p.s. I don’t agree with everything you write but I do enjoy your blog. Keep up the great work!

Advice-related charges are deductible. — Garth

#55 OttawaMike on 09.02.14 at 9:16 pm

Smokey

A Long Island biker whom I became acquainted with at rallies and rides has gone into fiction writing full time and is thriving.

On his third book. First one was an introduction to motorcycling. Second and third are Lorde of Rings/ Game of Thrones type fantasies.(Not my cup of tea)

His former career was appliance repair guy but he is a well rounded person with plenty of life experience that has served his writing abilities well.

#56 Andrew on 09.02.14 at 9:20 pm

@ #44 Happy Renting

Mercifully, I was spared the “save the account” phone call. I made it clear to my financial advisor that I wanted out and I think he saw the writing on the wall. I was fortunate (unlike Ted from Garth’s post) that there was no DSC on that account.

In the link I provided, Tom Bradley mentioned that his firm initiates the transfer the same day as the request is received. Some other financial institutions could learn from his example.

#57 crowdedelevatorfartz on 09.02.14 at 9:22 pm

Mr Flawed is where?

Rolling in his virtual money?

#58 devore on 09.02.14 at 9:32 pm

#14 Sebee

Will this push to increase minimum wages that seems to be reported daily, have any meaningful impact on ratios of RE affordability?

People making minimum wage don’t buy houses.

Or do they?

#59 Randy Randerson on 09.02.14 at 9:57 pm

An update on the Centrium tower in Toronto.

http://www.cbc.ca/news/canada/toronto/centrium-condo-9m-in-deposits-returned-to-residential-buyers-1.2753306

9 million dollars deposit for the residential units will be returned to investors, whereas the 15 million dollars for the commercial units is still unaccounted for.

#60 Cat man on 09.02.14 at 10:01 pm

…that poor cat! Any real animal lover would have been rushing to help mitigate a dangerous fall, and alleviate the stress of this poor beast. Instead takes a picture… WTF eh?

Garth, love your pathetic yet spoonable blog, and yes, all the amazing pics too, because I’ve learned so much. Many thanks for all of your efforts.

Just one of the many blog cats out here!

#61 Nemesis on 09.02.14 at 10:03 pm

#AModestProposal… #JohnnyCanuckSolutions… #ToGlobalProblems… #GoodForBeerSales,Too.

http://youtu.be/eah7hQByVcE

#62 Kenchie on 09.02.14 at 10:09 pm

#36 Andrew on 09.02.14 at 7:51 pm
“Another item to be aware of is the time it takes to transfer an account to another brokerage. Not only can you get dinged $100-$150 for the transfer, but since you’re about to be an ex-client, the brokerage has no incentive to expedite the process. Earlier this year I requested an account transfer and it took two months to transfer the account to Questrade.”

I did it this year to Questrade too. It took about 4 days.

#63 Kenchie on 09.02.14 at 10:16 pm

#39 Happy Renting on 09.02.14 at 8:15 pm
“#5 Bill Gable on 09.02.14 at 6:32 pm

As far as you can tell, where are your Boomer teacher friends spending their money that a strike of a few weeks means a job at Home Depot? I assume their pay is pretty decent. Where’s all that money going?”

After working at a giant London-based bank that targets the Asian demographic, it was common knowledge that teachers are, literally, the worst class of employees with their money. It’s like they come begging for LOCs in July just to pay them off later because they don’t know how to budget.

The second worst class of employees with their money: construction workers! Lol

#64 Flawed on 09.02.14 at 10:24 pm

#56 crowdedelevatorfartz on 09.02.14 at 9:22 pm
Mr Flawed is where?

Rolling in his virtual money?

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

I guess yer going to the movies cuz you don’t know you can stream movies. And calling yer mom on your rotary phone and interneting on yer Dad’s Commodore 64.

Oh and news flash…….97% or more off all money is “virtual” friend. Why do you think the world is in a shithole right now where interest on money created out of nothing is owed in the trillions to criminal bankers.

But you keep on calling gurlz with your moms rotary dial phone……

#65 kg on 09.02.14 at 10:25 pm

How come the radiation testing guinea pigs haven’t shrunk from yesterday …

#66 SWL1976 on 09.02.14 at 10:29 pm

Best advice I’ve got all day

Thanks Garth

#67 Randy Randerson on 09.02.14 at 10:34 pm

An example of teacher’s inability to budget and save. Granted, she’s a single mother of 2 young ones, but still, to be in dire strait after only 3 months of not working tells much about her finance skill. It seems like she’s also mortgage to the hilt as well, probably because she “feels” more secure with a house that’s temporarily under her name, at least until she can’t pay her mortgage no more.

http://globalnews.ca/news/1538270/teacher-with-6-in-her-bank-account-calls-on-bctf-to-reach-a-deal/

#68 Mark on 09.02.14 at 10:34 pm

“Banks lost their usefulness to society when they stopped using deposits to back loans.
—————–
Credit Unions still do.”

Are you guys kidding? Every dime lent out by Canada’s chartered banks must be borrowed from customers (ie: “deposits”, commercial paper, etc.), or contributed as shareholders’ equity, preferred shares, etc.

Credit unions operate no differently than the federally chartered banks, with the exception of how they handle the ‘equity’ portion of the business, and some consequential corporate governance and regulatory functionality.

So please…get your facts straight before unnecessarily slandering the banking sector which fully funds all loans in the usual fashion.

#69 NostyVlad the Snugglebombed on 09.02.14 at 10:46 pm

#5 Bill Gable on 09.02.14 at 6:32 pm — “Many of my friends are school teachers, here in Vancouver. Strike = looking for work at Home Depot. If this goes on for a few months, it is going to be really ugly.”
— and —
#14 Sebee on 09.02.14 at 6:50 pm — “Will this push to increase minimum wages that seems to be reported daily, . . .”

Bingo! The govt. won’t legislate teachers back, as it’s a good way to cut costs drastically, break the union and downsize. The sub-head here is enough of a clue. Bring back mfg. across North America, but at a min. wage of US$15 / hr. or thereabouts. Workforces are changing rapidly, with robots replacing workers. The times they are a’changing.

#143 eddy on 09.02.14 at 4:59 pm — “Bank on this- there will be another war in Europe.”
— and —
#145 Smoking Man on 09.02.14 at 5:16 pm — “Aggreed, game of chicken is on…”

The Rothschilds (money junkies) are making noises again, but a new alliance has other ideas, Who is the liar re: Russian invasion? (Hint: They own 95% or more of the m$m), Obama’s Chart, Declassified documents.

#70 JG on 09.02.14 at 10:56 pm

a nice change of pace today Garth. Thank you

#71 Smoking Man on 09.02.14 at 10:59 pm

OttawaMike on 09.02.14 at 9:16 pmA Long Island biker whom I became acquainted with at rallies and rides has gone into fiction writing full time and is thriving.

On his third book. First one was an introduction to motorcycling. Second and third are Lorde of Rings/ Game of Thrones type fantasies.(Not my cup of tea)

His former career was appliance repair guy but he is a well rounded person with plenty of life experience that has served his writing abilities well.

…..

I don’t know if I can do it yet, my life is perfect as it is. I publish, change will surly follow. Fame is my horror.
I’m obsessed with perfection, it’s perfect, fame will haunt me. It’s a by product of good marketing.

I will run into random people, knot knowing if they know I’m me, or a random celebrity worshiper, I’m not ready to give up that control….

Ya I had a few tonight, I’m smoking man from Nectonite, that rhymes..

#72 Sir Carney on 09.02.14 at 11:01 pm

Good article, thank you for trying to shine another light on the fog of financial confusion. only picky point is I sense some bias towards fee-based advisors?

—-

#6 Mark on 09.02.14 at 6:38 pm
Additionally, if one is a large holder of XIU, one can obtain management fee rebates from BlackRock which brings the 0.18% MER down even further. Furthermore, XIU receives and attributes revenue from securities lending to its unit-owners. While almost no brokerage account holding individual securities in Canada provides any customer rebate for securities lending activity.

—-
What amount defines a “large holder”? How much does the management fee come down?
Source?

#73 For those about to flop... on 09.02.14 at 11:13 pm

Kenchie at 62.
I,m a construction worker and my wife’s a teacher .
Thanks for the pep talk!

#74 Nemesis on 09.02.14 at 11:22 pm

#@KG/65…

Admittedly, it’s an old data set… but, in our experience, they tend to get bigger:

http://youtu.be/v4URRp39XOo

#75 Bottoms_Up on 09.02.14 at 11:30 pm

The worst fees have to be quarterly ‘inactivity’ fees or fees for not having a minimum balance.

The banks and trading companies certainly like to ding the little guy.

#76 Randy on 09.02.14 at 11:33 pm

I highly recommend watching Frontline’s “The Retirement Gamble” at http://video.pbs.org/video/2365000843/

There is some good info on fees and penalties you get from certain types of services.

#77 Blacksheep on 09.02.14 at 11:34 pm

Flawed # 23,

“Cdn is worth what it is because of confidence in the currency vs the US.”
—————————————————–
I’ve tried to share on this topic, previously supplying a link to help you open (your a progressive thinker, right?) your mind, but it seems your stuck, believing exactly what the system wants you to believe and that’s fine with me. It’s the old ‘lead a horse a to water’ deal.

As for Bitcoin, I’m a fan due to it’s finite production, but It’s still (for now) to volatile for my personal comfort.

Make no mistake, Bitcoin will never be accepted to reconcile tax burdens and will never replace any western sovereign currency.

Not without a revolution first.

#78 Bottoms_Up on 09.02.14 at 11:36 pm

#67 Randy Randerson on 09.02.14 at 10:34 pm
———————————————————
You don’t get out much do you?

Single mom…kids to feed….on a teachers salary, and you’re lambasting her for lack of financial security??

Do you have any idea how much money teachers make?

Try some of the lowest paid teachers across Canada, with starting salaries in the range of $40,000-50,000:

http://www.bctf.ca/uploadedfiles/public/bargainingcontracts/teachersalaryrankings2013-14brief.pdf

#79 Baa on 09.02.14 at 11:45 pm

After getting rid of a fin. advisor, realised I was stuck with one of those DSC funds. You can (or could a few years ago) withdraw 8% (maybe more) each year no penalty. It was considered withdrawal of principal until the 7 years was up to withdraw the rest with no penalty.

#80 Flawed on 09.03.14 at 12:10 am

I’ve tried to share on this topic, previously supplying a link to help you open (your a progressive thinker, right?) your mind, but it seems your stuck, believing exactly what the system wants you to believe and that’s fine with me. It’s the old ‘lead a horse a to water’ deal.

As for Bitcoin, I’m a fan due to it’s finite production, but It’s still (for now) to volatile for my personal comfort.

Make no mistake, Bitcoin will never be accepted to reconcile tax burdens and will never replace any western sovereign currency.

Not without a revolution first.

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

No. 1 Bitcoin transactions are rising 40% a year and will surpass PAY PAL – maybe you’ve heard of it – by the end of 2014

No. 2. You can’t pay your taxes in Mexican Peso’s but you can certainly “trade” your Pesos to Cdn dollars then pay your taxes. And bitcoin is different how?

No. 3 Bitcoin IS THE REVOLUTION. US dollars buy nukes, tanks and weapons that kill people. Bitcoin does not.

I think you have it backwards as to whom is bringing the horse to water and watching said horse…..not drink.

#81 Cici on 09.03.14 at 12:49 am

“Plus, demand the guy pay for any transfer fees that another company dings you to move your money.”

Hmmm, very interesting Garth, but how much cash do you need to hand over for a 1% fee-based advisor to take you seriously? I mean, I imagine it’s got to be a lot to make it worthwhile to both the advisor and you?

So, just what is the minimum amount of savings you need to have on hand before approaching such advisor, and what are your obligations? Do you have to give them total financial control of all your cash savings, and what about new contributions (monthly or quarterly basis?). And obviously, despite the tax advice, you still need a proper accountant, right?

#82 gtrz4peace on 09.03.14 at 12:52 am

#40 and Bill Gable, #5 — We ARE the teachers. Husband came to BC to teach public school after our successful live performance music business was no longer going to be sustainable due to age (ours).

Very few teachers are as lucky as my husband who made $200K per year as a musician for decades, and build assets. Many of the teachers we know are living hand to mouth, so there just is not “all that money.”

Teachers are getting a SCREW job, but that is NOT what the Teacher’s Union strike is about — it is about breaking the Union. Now THAT will be a screw job for your entire country, watch and see.

Or join us.

Fight for what once was a highly regarded public education system worldwide. Seriously, find out what the strike is really about and when you do, blog dogs, we welcome you to join us.

Breaking the teacher’s union is only the beginning for this government.

#83 Randy Randerson on 09.03.14 at 12:58 am

#78 Bottoms_Up on 09.02.14 at 11:36 pm

——-

Median income for lone parent families in BC is $37,420. No need to cry for public sector workers who are expecting to suck on the public teats until retirement age, making above median salary. Also, as GT espoused, a house is a one trick pony, emotional security isn’t the same as financial security.

#84 winterpeg on 09.03.14 at 1:04 am

I stumbled across “Nest Wealth” online which claims they will do the investing, rebalancing at $80 per month, no matter how high your amount is with them, Their minimum is $50,000.
At $80 per month x 12= $960/year fees, this would only start beating an 2.5% annual MER if the initial “principle” was above $38,500. They claim no matter how high, still only $80/month. Would need to look more closely at it. Anyone checked it out?

Interesting idea, but in addition to the $80/month, investors are charged $10 per trade, $25 for each time you need cash, plus account-closing fees and you cannot transfer any securities into an account there – cash only. There is apparently no financial plan drafted for you, nor planning advice given. — Garth

#85 Cici on 09.03.14 at 1:11 am

#37 Catalyst

Nice info Catalyste, thanks for sharing.

#86 Mark on 09.03.14 at 1:21 am

“What amount defines a “large holder”? How much does the management fee come down?
Source?”

Its in the prospectus/offering documents/trust indenture, which are available at the BlackRock website if you read them carefully enough.

If you have to ask $$$-amounts, then obviously you don’t have enough!

My point was, after securities lending revenue is taken into account, and the trust’s tax deductibility of the management fee, the cost isn’t even 18bp, but is actually less.

#87 will on 09.03.14 at 1:43 am

yeah when i got rid of my dsc funds i was past the 6 year thing. hold them until you are past that then get doing the interesting stuff. of course my adviser was beside himself if not infuriated but i didn’t give a shit. this is freedom. taking charge of ones investments.

#88 Doug from Victoria on 09.03.14 at 1:58 am

I got burned on the IG DSC scam as well. They have to use DSC to prevent mass exodus when the client relizes they will never make any money investing with IG.

On top of that, their funds underperform and their “advisors” use paint-by-number (or darts) to pick your funds and have only minimal clue what they are doing. There is no chance of recovering the high MERs they charge and no escape if there is a DSC.

In the end I paid the DSC, found a much better investment company and have regained my losses. Lesson learned.

#89 BC_Doc on 09.03.14 at 2:14 am

Great post on a hugely important topic, Garth!

In my opinion, most folks should be be going the DIY (Do It Yourself) route. None of this is rocket science.

A three-fund portfolio is simple to put together.
60-40 stock-fixed income is a timeless, one-size fits all approach which combines growth with capital preservation.

For the equity side of things, I like 1/3 Canada and 2/3 All World Except Canada. Vanguard Canada easily fits the bill here. In an RRSP, for tax reasons, one should use VT-N (traded over the NYSE) combined with VCE-T or VCN-T. Outside of the RRSP (TFSA or non-registered account), substitute VXC-T for VT-N.

On the fixed income side, Vanguard Canada has two good offerings– VAB-T (Canadian Aggregate Bond Index ETF) and VSB-T (Short Term Bond Index).

MER for this portfolio is sub-0.20%.

Last thing– for those interested in this topic, and we all should be if we don’t want to be eating cat-food in our old age– there’s loads of great info at http://www.canadiancouchpotato.com and http://www.bogleheads.org. Have a look at the “wiki” side of bogleheads for more info on the three fund portfolio.

#90 Tony on 09.03.14 at 2:27 am

Re: #35 Italians love real estate on 09.02.14 at 7:48 pm

Canada is one of the last countries on Earth you’d want to be investing in real estate right now.

#91 Lolo on 09.03.14 at 4:14 am

I got dinged with the DSC when I moved from my commissions based advisor to a fee based. I had thought that any such fee would have been negligible, since we had been careful to switch funds within the same family during our portfolio reviews, and I had been w/ this advisor for over 10 years. Well, guess what, when the 7 or so years for the DSC ran out, the funds were rolled over, and then another 7 years started ticking again.

#92 Italians love real estate on 09.03.14 at 6:31 am

#79 Baa on 09.02.14 at 11:45 pm
After getting rid of a fin. advisor, realised I was stuck with one of those DSC funds. You can (or could a few years ago) withdraw 8% (maybe more) each year no penalty. It was considered withdrawal of principal until the 7 years was up to withdraw the rest with no penalty.

Another reason you should stick with real estate.

“DSC ” fees which decline to zero after 7 years is met with condemnation by the masses but our blog host sees no issue with real estate agents making 5% of the sale price of a home , which progressively gets higher with rising prices, and NEVER goes away.

God I love the un level playing field that is real estate !

#93 Frank Hakimi on 09.03.14 at 6:42 am

I too learnt the hard way by investing with Investors Group. Had a slick sales job done on me and fell for it.
when I wanted to get my funds out had to pay a massive fee in addition to what they were taking from me on a monthly basis. At the end of 4 years, my total investment was less than what I had originally invested.
I then learnt from others that IG has a reputation for that. Keep away from them.

#94 earthboundmisfit on 09.03.14 at 7:02 am

New disclosure regulations should result in at least a 50% reduction in the IG sales force, if not more. That’s a good thing. ******* bandits.

#95 bigrider on 09.03.14 at 7:09 am

Italians love real estate- all posts

You are a revolting example of the predominant thinking in your/our community.

I wish it would change but doubt that it will, at least without many more generations(hopefully)

You are unfortunately correct in your #91 post

#96 rosie "moving forward" in the knowledge that, "this won't end well" on 09.03.14 at 7:54 am

Even the Star is showing the way. Unless, of course, this is a big set-up. Tin foil hat off.

http://www.thestar.com/business/personal_finance/2014/09/02/bank_shares_can_give_doubledigit_returns_roseman.html

#97 Hot Albertan Money on 09.03.14 at 8:19 am

“This, of course, was in addition to the 2% he’s been shelling out regularly for the past few years to own mutual funds in this company which shall, mercifully, remain nameless (Investors Group).”

Oh my God Garth….You’ve got me laughing here at the office and I’m only 3 paragraphs into your post

Keep up the good work

#98 Victor V on 09.03.14 at 8:28 am

Why real estate gains in Canada aren’t nearly as healthy as they seem

http://business.financialpost.com/2014/09/02/real-estate-canada-gains/

It took just over 24 hours to sell a house in midtown Toronto for $1.15 million. Considering the same house sold for $1.05 million about two years earlier, it looks like a sweet deal until you realize there’s not much profit at all once you factor in transaction costs.

The same property has now switched hands five times over the past two decades and with each sale there are myriad costs — fees the often-maligned mutual fund industry could only dream of. In real estate, the costs of selling and buying can easily eat up to 10% of home equity. This is especially true in Canada’s largest city with its double land transfer tax system to go along with the usual realtor commissions, legal fees, moving costs, appraisals, inspectors and minor maintenance to spruce up a home.

#99 Holy Crap Wheres The Tylenol on 09.03.14 at 8:59 am

#18 Smoking Man on 09.02.14 at 7:03 pm
One thing I know is Canadians are cheap bastards, over schooled with a false sense of IQ
I’m in line at the LCBO the other day, two ladies in front of me in line. Both paid with debit cards, both teachers talking about the up coming season, both did not conceal there pin numbers.
I mutter out her pin, 7521 this exceptional idiot, she turns and blasts me how dare I look at her pin.
I replied, thank your lucky stars that I’m a rich alcoholic, I could have easily been desperate depraved penniless drug addict and would met you in the parking lot. There you go teacher, perhaps you can teach that to the kids..
_____________________________________________

Yep Smoking Man the world is full of idiots, Ive seen them all! By the way my Irish wife was a teacher, and I’m sure she would kick your ass all over the parking lot, she is no idiot. She would never let anyone see her PIN. She was a tough no nonsense high school teacher that said I am here solely to prepare you for life so listen up or get out! She taught math and was a great teacher. She still has students come up to her after twenty years and thank here for getting them through calculus.

#100 rosie "moving forward" in the knowledge that, "this won't end well" on 09.03.14 at 9:04 am

I’m seeing this as a golden opportunity to jump in. Calgary is so world class. And different.

http://www.bnn.ca/News/2014/8/28/Surge-of-new-listings-eases-Calgarys-housing-market.aspx

#101 Holy Crap Wheres The Tylenol on 09.03.14 at 9:16 am

Looking at the caption photo all I could think of was the poster in the early seventies of the Cat hanging on for dear life. “Hang in there baby”

All of these fees are there to make money off of the average Joe. My friends and I have an old guys investment club where we pooled play cash together to invest. We have some good ones and some bombs. Overall we average a tidy sum. One of our club members was a investment banker before he retired. He still likes the chase!
By the way its a great excuse to get together once a month for dinner and drinks without the wives.

#102 cowtown cowboy on 09.03.14 at 9:20 am

Sorry Garth, did I offend?

Of course not. But I emailed you directly. Or was that a fake address you provided? Then I am offended. — Garth

#103 surprised on 09.03.14 at 9:20 am

Thank Garth for this post.
You have provided a good help to the community in planning their toothless days on the Earth.

Looking at this post is hard to imagine a possible way towards the financial security with enough passive income to cover your minimal expenses (food, shelter, transport).
You are among the 3 financial persons in Canada that I accept to listen or read. I must mention Andrew Hallan

#104 Nuke on 09.03.14 at 9:21 am

MERs are important numbers to look at. Take a look at this bank’s offerings. The mutual fund is at 2.46% MER while a similar pooled fund has a miniscule 0.07% MER. It is amazing how they get away with a retail mark up of 3,500%! Must be the service.

http://dox3erp.distributech.ca/ModulesERP/Uploads/48/PDF/cib_477_en.pdf

http://dox3erp.distributech.ca/ModulesERP/Uploads/48/PDF/pps_365_en.pdf

#105 crowdedelevatorfartz on 09.03.14 at 9:24 am

@#80 Flawed
Bitcoin : the virtual ponzi.
Invented by a person who deny’s being it’s creator.
Bitcoins, lost or stolen via virus’s, malware or outright fraud.
Poof your bitcoin is “gone” with zero chance of recovery.
Bitcon the drug dealors choice of currency.
Bitcon , flagged by the FBI as a possible terrorist funding avenue.
Bitcoin for investment……….A Fools paradise.

Back to my rotary phone, I have Bitcoins to sell….from my boilerroom operation……..”buddy have I got a deal for you…….untraceable, untaxable, unregulated…..and totally garanteed that nothing will go wrong….”

riiiiiiiiiiiiiiiiiiight.

#106 Dupcheck on 09.03.14 at 9:25 am

@ #35 It^%&$ns love real estate

You seem as ignorant and annoying just like your posting name. We learn nothing from you.

#107 Dupcheck on 09.03.14 at 9:33 am

See what posters like Smoke and It”fraudlia”ns love real estate do to the blog. They throw it off the tracks, high jack it with ignorant and untrue comments about teachers and RE will always go up.

Base your comments on the topic of the daily post that Garth talks about, don’t be fooled and brainwashed the two “ignorants” mentioned above.

#108 SWL1976 on 09.03.14 at 9:59 am

Wow watching Obama on CBC speak about Russia and say ‘these are facts’ is hard to take

Anyone else notice the CBC is extra lame these days?

Thanks Harper, you sound like a fool to, not so charismatic like Obama, he is quite a public speaker gotta give him that

I sure do hope humanity can wake up and find some common ground, but fear we are being led blindly to war for the elite who are obsessed with control

We have so much potential to do so many great things…

#109 Cow Man on 09.03.14 at 10:24 am

Sir Garth:
Why just pick on IG. Try Sentry Select’s history of rolling over Mutual Funds and starting the DSC clock ticking again.

#110 Mike in Toronto on 09.03.14 at 10:26 am

iTrade is $10/trade if you’re not very active and have a reasonable balance (>$50k?).

They also have “commission free” trades on some pretty decent indexes. I use them to hold monthly dividends because the purchases are small enough that the $10 is significant.

I would very much like to find an advisor who doesn’t suck. I’m not very trusting though. There are lots of people who’ll take your money to tell you things that they know nothing about and don’t have to guarantee results.

NB. If you visit IG and they break down your portfolio, you get a lot of good information about how to think about your finances and organize stuff. I’m glad I went, and I’m even happier that I didn’t sign up with them.

#111 DrStan on 09.03.14 at 10:26 am

Post 89 pretty much sums it up. I prefer individual dividend stocks and ETFs myself, but a dead simple 60/40 ETF portfolio can be assembled by anyone who doesn’t have the inclination to do their research. The TD e-Series funds are also a decent second choice. Guaranteed to outperform managed money over the long run, low fee, low hassle.

I do hold some shares of Power Financial (parent of IG), so I implore the masses, please, go out and get more of that IG Dividend Fund (MER — 2.8%). It holds $17B. Sweet.

#112 Chickenlittle on 09.03.14 at 10:28 am

Happy Renting:

LOL!!!!
It was like getting a tattoo: once I got used to the pain it wasn’t so bad. My nephew just kept telling me I’m stupid, that he doesn’t like my house,etc. He’s a smart mouthed brat that one…

I WAS #1.. Now I’m like the Leafs.first in the division for a while, then the usual slide back to #9.

#113 -=jwk=- on 09.03.14 at 10:37 am

paid that price to get out of CICB wood gundy. Guy had fantastic office, secretary bring us drinks and everything. Luckily it was only 34k he took a bite out of – AGF mutual funds if I recall.

It took me 3 years to consoldiate the various little accounts I had here and there in both US and Canada. Finally got it all into RBC DI RC account and happy so far there.

#114 Daisy Mae on 09.03.14 at 10:37 am

#36 Andrew: “Earlier this year I requested an account transfer and it took two months to transfer the account to Questrade.”

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

It took that length of time to transfer out for me, as well — Investors Group was dragging its feet.

#115 Rational Optimist on 09.03.14 at 10:48 am

78 Bottoms_Up on 09.02.14 at 11:36 pm

“Do you have any idea how much money teachers make?

Try some of the lowest paid teachers across Canada, with starting salaries in the range of $40,000-50,000:”

Last time I checked, the average wage in Canada is right in that range. And you’re telling us that teachers make that to start, in addition to benefits that are extremely uncommon among Canadians at large.

Come on, in the article Randy linked to, the hard-up teacher said she’s “cut back on vacations and entertainment for her kids this summer.” Pretty good example of someone who is not very forward-thinking (along with teachers at large, perhaps, as the union’s strike fund also has nothing in it).

Good lesson to other working people, if you ask me: achieve some financial independence, and you’ll have the freedom to advocate for better conditions; spend like Katie Caines, and you’ll be begging your union to deal because you “need to work” at whatever cost.

#116 sentry on 09.03.14 at 10:55 am

#82 gtrz4peace…This is pure rubbish….get real pal,your demands are from the “cost plus 70’s”14.5%,when all other B.C. unions settled for about 5 %.Are you SPECIAL ??But your willing to drop the $3000 per year for massage therapy,so good of you.Its all about the kids is the slogan for propaganda purposes….try again.The gov. offered to open schools,but Nooooo.The Emperor has no cloths….NOW,get back to work,fool

#117 sentry on 09.03.14 at 10:56 am

correction ….Emperor has no clothes

#118 Matt on 09.03.14 at 11:12 am

Has anyone used Primerica before? I understand them to be one of the better investing companies to become involved with…

Mutual fund central. — Garth

#119 Not dumb in Calgary on 09.03.14 at 11:24 am

@12 celebrity photo hackers

It’s funny that those celebrities feel violated. Why did they take the pictures and then stupidly place them in storage somewhere else? These celebrities are overpaid idiots. And these females have the mistaken assumption that their bodies look different than any other woman. Please.

What is even worse is the FBI taking time to “prosecute” those that “hacked” these files. What a joke. What has this world come to? These celebrities are nobodys.

And the herd continues….off the cliff.

#120 Smoking Man on 09.03.14 at 11:35 am

#107 Dupcheck on 09.03.14 at 9:33 amSee what posters like Smoke and It”fraudlia”ns love real estate do to the blog. They throw it off the tracks, high jack it with ignorant and untrue comments about teachers and RE will always go up.

Base your comments on the topic of the daily post that Garth talks about, don’t be fooled and brainwashed the two “ignorants” mentioned above.

…..

You do realize this post is way off topic… Just saying.

#121 45north on 09.03.14 at 11:35 am

Smoking Man : I mutter out her pin, 7521 this exceptional idiot, she turns and blasts me how dare I look at her pin.

pretty funny

Catalyst : 5) Don’t do any trading based on BNN talking heads. I have many times been quite convinced by the story they are spinning then when I go and fact check some of what they said, I am usually disappointed. I am quite convinced the people they bring on are there to talk up stocks they are looking to dump.

thanks for your advice

Bill Gable : I am of the Boomer cohort and I can say, a ton of my friends are sweating over heavy debt and terrible job insecurity.

Many of my friends are school teachers, here in Vancouver. Strike means they are looking for work at Home Depot. If this goes on for a few months, it is going to be really ugly.

I suppose they aren’t going to be buying houses.

Italians love Real Estate : your comment is unintelligible : Just think how great it would be if all Acadians got rid of their mutual funds , ETF’s and all that other crap and put it into real estate !

Acadians? what are you talking about?

http://en.wikipedia.org/wiki/Acadians

Flawed : No. 3 Bitcoin IS THE REVOLUTION. US dollars buy nukes, tanks and weapons that kill people. Bitcoin does not.

Bitcoin may be the revolution. Gold is environmental damage. I saw a show where some guys went up to the Yukon to look for gold. Their basic philosophy was to rip up some bush with a big bulldozer. Which doesn’t mean that I believe that if we all hold hands then there won’t be any bad guys. As John McCain said about Putin : “I looked into his eyes and saw three letters KGB”

http://en.wikipedia.org/wiki/John_McCain

#122 };-) aka Devil's Advocate on 09.03.14 at 11:48 am

We are getting closer to that real estate market “correction” Mr. Turner has been talking about for since the last one six years ago. The last one was more a financial sector correction than housing although it certainly had an effect on housing values.

Right now we have a “Balanced Market” (six months worth of inventory). We are moving toward a Seller’s Market. Volumes are up by more than a third from two years ago. Inventory is down about a quarter from two years ago. Consequently prices are on the rise.

As prices move up they gain momentum increasing exponentially with such furore that they overshoot reason. Incomes and rents can only support so much price appreciation at a time.

Ultimately a correction will ensue. “When?” is the question. “We’re getting closer.” is the answer.

#123 };-) aka Devil's Advocate on 09.03.14 at 11:52 am

Addendum…

But don’t expect dramatic price drops. As we head into the cooler climate, and heads, of the winter season the market might just settle into it’s own realization that equilibrium (balance) has already been achieved and hang there past Spring.

#124 Steve on 09.03.14 at 11:53 am

#118 Matt on 09.03.14 at 11:12 am

Has anyone used Primerica before? I understand them to be one of the better investing companies to become involved with…

Mutual fund central. — Garth
_____________________________________________

Matt, best you develop a new understanding. They are well structured to make lots of money from foolish investors. Suggest you run…

#125 Retired Boomer - WI on 09.03.14 at 12:01 pm

Still like Garth’s advice to investors.

I often wonder how many read several books on investing before just opening an account either on-line, or with a ‘so called’ financial manager.

I say ‘so called’ because here in the U.S. we have these critters called broker dealers, financial planner, financial analyst, senior investment advisor, and a host of other terms. ONLY one term ‘the fiduciary relationship’ has meaning. So, here ask if the purveyor is willing to sign a paper that he / she will act as my financial fiduciary.

That said, costs matter! Whatever you select, watch the costs whether do it yourself, or via an advisor.

it’s your money, all your risk, you might as well reap the highest share percentage of reward possible.

#126 Victor V on 09.03.14 at 12:03 pm

https://ca.finance.yahoo.com/blogs/balance-sheet/canadian-investors-are-often-warned-about-154004366.html

Canadian investors are often warned about management and transaction fees that can eat into their investment returns, while being encouraged to look for products with lower fees.

But what about investments Canadians count on but can’t control, such as the Canada Pension Plan (CPP)?

A new report from the Fraser Institute says the CPP’s investment costs have more than tripled between 2006 and 2012 as a result of “hidden” transaction and external management fees as part of its newer “active” investing approach.

#127 Jim on 09.03.14 at 12:43 pm

Mark, you sound like a smart guy. Perhaps you could tell me;

What % of say, RBC’s Capital Requirements come from Tier 2 sources and how does one determine what the Tier 2 Capital sources are?

#128 surprised on 09.03.14 at 12:50 pm

#118
< Has anyone used Primerica before? I understand them <to be one of the better investing companies to become <involved with…

Little history about these suc..rs

In my way to try to make my living creating passive income at the same time that I'm able to help others I went to one of their presentations for those wanting to become their financial planners.

The guy started showing his past history having a car that used a rubber band over his roof to keep the doors closed because the locks were broken, he transitioned to another picture with his current lifestyle far beyond any expectation you could imagine.

The main point of the presentation is how you life can change promoting their products, not how those who buy your insurance policies or investments will be rewarded for buying the products from you.

I felt a huge disappointment and decided not to follow that way, I'm sorry, it's impossible for me to be a crooked person.

Hopes it helps about understanding Primerica, the financial sector has lost their principles in their way.

My sad opinion about the financial sector, their main goal is to suck your money with the most elegant way possible, I do not trust them AT ALL.

#129 Enthalpy on 09.03.14 at 12:56 pm

Im not against having some TD e-series. Lowest mer’s around.

#130 Greyhelm on 09.03.14 at 1:21 pm

Not all mutual funds are evil.

My wife’s RRSP (280K) is all in Mawer’s balanced fund — MER .96 – 1 yr 19.3, 10yr 8.1 — plus she has a dedicated account manager she can call anytime. Zero costs beyond the MER. Hard to beat.

My RRSP (230K) is all with Phillips, Hager and North in a mix of income and equity funds. Combined MER is less than 1 per cent. Performance of equity funds is not as good as Mawer but PHN has been called the best fixed income house in Canada. I do all my rebalancing here.

We also have a TFSA with TD in e-series index mutual funds, all with MERS well under a per cent. These are a good alternative for those with less to invest and for ETFs as there are no transaction fees when rebalancing.

#131 CapitalRev on 09.03.14 at 1:22 pm

Great, informative post. Thanks, Garth.

#132 Blacksheep on 09.03.14 at 1:24 pm

Flawed # 80,

“No. 2. You can’t pay your taxes in Mexican Peso’s but you can certainly “trade” your Pesos to Cdn dollars then pay your taxes. And bitcoin is different how?’
——————————————-
“And bitcoin is different how?”

To the Gov. of Canada (a sovereign in control) Bitcoin it isn’t ANY different.

The fact is you MUST “trade”, Bitcoin, Pesos, Roubles or Gold for Canadian $ to “then pay your taxes.” cause “You can’t pay your taxes in” any other currency, period.

This forced acquisition of $’s by every working Canadian to the tune of 40% of gross incomes, drives demand for Canadian currency.

Do you understand what I’m trying to tell you? It’s a ruse that’s all about perception.

They don’t need your fricken money. They can just digitize or borrow more, but they do need to maintain demand, both real and perceived, for ‘their’ currency. They do need you to think your personal $’s, pay for all things governmental.

This maintains the currencies value. This is how our (US too) sovereign system works. Now…I will get arguments from the Cattle, but that only means the system is working, as designed. It only works if the masses believe and thus defend the illusion.

“No. 3 Bitcoin IS THE REVOLUTION.”

Viva la revolution! Sure, no argument, but irrelevant when discussing what gives a sovereign currency value.

#133 Son of Ponzi on 09.03.14 at 1:30 pm

Question?
I’m planning to put all my retirement savings under a mattress.
Can I write off the cost of the mattress?

#134 gladiator on 09.03.14 at 1:57 pm

@128 Surprised:

Nothing new under the sun, Sir.
There is a neat little book called “Where Are the Customers’ Yachts: or A Good Hard Look at Wall Street”.
Highly recommended to anyone involved on either side of financial advising business: customer and advisor alike.

#135 Mark on 09.03.14 at 2:08 pm

“A new report from the Fraser Institute says the CPP’s investment costs have more than tripled between 2006 and 2012 as a result of “hidden” transaction and external management fees as part of its newer “active” investing approach.”

Sounds like a bunch of cronyism to me. Although that’s par for the course, since CPP, by definition, is pretty much a matter of the government’s cronies being put in charge of money that’s been confiscated from working Canadians.

#136 Italians love real estate on 09.03.14 at 2:11 pm

#106 Dupcheck on 09.03.14 at 9:25 am
@ #35 It^%&$ns love real estate

You seem as ignorant and annoying just like your posting name. We learn nothing from you.

Perhaps not but we learn much hate , anger and bigotry from you .

#137 cowtown cowboy on 09.03.14 at 2:11 pm

Sorry Garth, did I offend?

Of course not. But I emailed you directly. Or was that a fake address you provided? Then I am offended. — Garth

AHH, got it, thanks!!! Not fake, just the address I use in such cases…
PS. It did end up in my ‘Junk’ folder though ;-)

#138 liquidincalgary on 09.03.14 at 2:12 pm

says:

57 crowdedelevatorfartz on 09.02.14 at 9:22 pm

Mr Flawed is where?

Rolling in his virtual money?

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

…wearing nothing but a smile and his tightey whiteys !

#139 Italians love real estate on 09.03.14 at 2:16 pm

#95 bigrider on 09.03.14 at 7:09 am
Italians love real estate- all posts

You are a revolting example of the predominant thinking in your/our community.

I wish it would change but doubt that it will, at least without many more generations(hopefully)

You are unfortunately correct in your #91 post.

Perhaps my belief system revolts you as you say but if you share the heritage you know that the mentality towards real estate and particularly land as the most successful investment, will never change.

After all , from poverty to wealth unimaginable has real estate made of Italian immigrants.

#140 Dupcheck on 09.03.14 at 2:40 pm

Primerica is a legal pyramid scheme. Google it for yourself. Once I had a job interview with them and it was the strangest interview ever. Walked out of there scratching my head, what the heck was that.

#141 Dupcheck on 09.03.14 at 2:47 pm

@: #138

We all know how some of them got rich. Not many come with 8$ in their pockets and becomes a millionaire in a decade or two by doing legal work. A lot of them are crooked and we all know how they like to bend the rules in their favour. Being proud of these type of rich makes you one of them… So it would be best if you changed your offending posting name to something less offending and assuming.

#142 devore on 09.03.14 at 2:53 pm

#133 Son of Ponzi

I’m planning to put all my retirement savings under a mattress.
Can I write off the cost of the mattress?

If you also sleep on it, only a portion qualifies. The CRA has a formula you can use.

#143 Nemesis on 09.03.14 at 3:03 pm

#TheHorror! #Quote’OTheDay…

“My impression is that the spirit is willing, especially at the top, but sometimes the flesh is weak.” – Chairman of the Treasury Committee, Andrew Tyrie

[BBC] – Regaining trust in banks ‘years away’, says Andrew Tyrie

http://m.bbc.com/news/business-29046605

#144 devore on 09.03.14 at 3:04 pm

#134 gladiator

There is a neat little book called “Where Are the Customers’ Yachts: or A Good Hard Look at Wall Street”.

That’s a poor title. But provocative, my pitchfork is ready.

I have one of my own: “Where Are the Customers’ 100 Year Birthdays: or A Good Hard Look at Family Doctors”. You go to a doctor because of health ailments. If you walk out healthier than you walked in, he did his job and earned his keep. Same with investing.

It is not a financial adviser’s job to make you wealthy. For vast majority of people, a yacht indicates significant financial success. Throwing a couple thousand a year into an investment account will never get you there. A significant change in lifestyle (buying a yacht) requires a significant change in life.

Do some people working in investment industry make a lot of money? More than I do? Sure they do. So does my doctor. And my back still hurts.

#145 Shawn on 09.03.14 at 3:26 pm

Blacksheep is Dollar Doomer?

Blacksheep at 132 said:

This forced acquisition of $’s by every working Canadian to the tune of 40% of gross incomes, drives demand for Canadian currency.

************************************
Not sure the point here. Clearly almost all working Canadians are paid in Canadian dollars and so there is no forced conversion to Canadian dollars to pay taxes.

If people concentrate on accumulating currenc rather than trying to particularly understand its nature, they will tend to do okay.

Getting so wrapped up in the fear that government’s can print dollars that you stop trying to accumulate said dollars is a bit like refusing to eat (at all) because you heard that food contains additives or causes animal suffering or whatever. Ya still gotta eat.

#146 Flawed on 09.03.14 at 3:31 pm

#105 crowdedelevatorfartz on 09.03.14 at 9:24 am
@#80 Flawed
Bitcoin : the virtual ponzi.
Invented by a person who deny’s being it’s creator.
Bitcoins, lost or stolen via virus’s, malware or outright fraud.
Poof your bitcoin is “gone” with zero chance of recovery.
Bitcon the drug dealors choice of currency.
Bitcon , flagged by the FBI as a possible terrorist funding avenue.
Bitcoin for investment……….A Fools paradise.

Back to my rotary phone, I have Bitcoins to sell….from my boilerroom operation……..”buddy have I got a deal for you…….untraceable, untaxable, unregulated…..and totally garanteed that nothing will go wrong….”

riiiiiiiiiiiiiiiiiiight.

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

Good job making a greater fool out of yourself. Maybe you need to take a break from the methane gas your inhaling……

Oh and then there is this little ditty……

http://www.ibtimes.co.uk/bitcoin-set-overtake-ebays-paypal-transaction-volumes-1449856

Just keep talking mr Fart

#147 Shawn on 09.03.14 at 3:35 pm

Tax Deductibility of Fee-Based Advisor is Advantage over Commission-based Advisor?

I am not so sure.

Scenario 1: Investments make 7% pre-management costs and the commission-based advisor gets his 1% and you make 6% and pay tax on 6%.

Scenario 2: Investments make 7% pre-management costs and the fee-based advisor gets his 1% as a separate payment from you and you make 7% and pay tax on that but then pay the 1% fee and deduct that so your net tax is… exactly the same no?

Above assumes returns made in cash and taxable.

If return is made as delayed capital gain there would be some advantage to deducting the fee outside the investments because you get to claim the deduction this year while the gain can be deferred.

But overall to suggest that the commission in scenario 1 does not generate a tax saving does not seem correct. It reduces your return on which you are taxed. no?

There may be scenarios where the pay-outside and deduct outside system is superior. There would appear to be other scenarios where it makes no difference. What are these various scenarios?

The majority of investors hope for deferred capital gains, and those with a fee-based advisor get to deduct 100% of their non-registered costs in advance. You should think more before you type. — Garth

#148 Flawed on 09.03.14 at 3:38 pm

Fight for what once was a highly regarded public education system worldwide. Seriously, find out what the strike is really about and when you do, blog dogs, we welcome you to join us.

Breaking the teacher’s union is only the beginning for this government.

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

I drove past three schools of striking teachers today. I completely agree that “govt services are SHIT” compared to 20 years ago. They all are. Technology is getting better and more efficient (hospital diganostics etc) but services are cut and cut and cut.

HOWEVER

We in the PRIVATE sector don’t get gold plated pensions and back massages.

IF THE TEACHERS had striked ONLY for classroom sizes and “Stuff For The Kids” there would have been a deal in June. I guarantee it…

#149 rosie "moving forward" in the knowledge that, "this won't end well" on 09.03.14 at 4:28 pm

#147 Flawe

All teachers strikes are about the children. Back massages help relieve the tension that accumulates daily trying to learn your little snowflakes. Anyway, you said yourself that services are being cut and it ain’t like it used to be. Education is a service, sounds like your problem is with service provider and that would be your government, unless it’s a private school your talking about.

#150 Italians love real estate on 09.03.14 at 4:32 pm

” The best investment in the world is dirt”

Thomas Sinclair

#151 Italians love real estate on 09.03.14 at 4:38 pm

#141 Dupcheck on 09.03.14 at 2:47 pm
@: #138

We all know how some of them got rich. Not many come with 8$ in their pockets and becomes a millionaire in a decade or two by doing legal work. A lot of them are crooked and we all know how they like to bend the rules in their favour. Being proud of these type of rich makes you one of them… So it would be best if you changed your offending posting name to something less offending and assuming.

My god Garth. I thought you were the gate keeper to racist and prejudiced diatribes like this guy.

And I bet he has bought ( or better yet) rented his place of residences on more than one occasion from an Italian builder or landlord … Lol

#152 Guy on 09.03.14 at 4:49 pm

Read a book called the “Four Pillars of Investing”. It has helped me manage my own money in a better way.

#153 Westcdn on 09.03.14 at 4:50 pm

It is a rainy day in Calgary, so why not review local RE stats? It looks like an average price of 450 $k for a SFH (detached single family home) is the median price and has declined from July. However, condos priced under the SFH median asking price are moving. In my opinion, the average SFH price is stuck for now. The average new buyer can’t afford more. I think Calgary RE prices are on pause and trying to decide which way to go (for the plebs). Per 3rd party information, those who have money are spending but I don’t think it can raise average SFH prices although it certainly maintain them. http://creb.com/public/seller-resources/housing-statistics.php
I saw this place just outside of Calgary City limits – some people just have too much money.
http://calgary.ctvnews.ca/massive-multi-million-dollar-family-home-rising-west-of-calgary-1.1842534
Rumors have it that it the owner is a Hong Cong RE magnate and will surround it with a forest. Who would of thunk, AB over BC or TO? I get a kick out of the sniper towers in the corners.
On a personal note, I converted my self-directed RSP to a self-directed RIF at the ripe old age of 60. I did this because I wanted monthly withdrawals and didn’t like paying the administrative fee on the RSP w/d’s. Plus I didn’t like the tax my estate would have to pay in my untimely death (I am divorced). Most of the withdrawals will be moved to my TFSA and non-registered investment while my marginal tax rate is low (I may get tired of being retired). Apparently, I have to wait until January 2015 before the monthly payments begin but I retain the right to make additional demand withdrawals without admin fees. I will let this blog know how it works out.
Ps. Fifteen years ago, I came across an article there were a few people in Canada that had more than a $1 million in their RSP accounts. Since I wanted to do the same, I did some investigation. The answer I came across were these people were entrepreneurs during the dot-com period (2001) who transferred their personal shares to a RSP before their company was bought out – ouch, but I don’t feel sorry for them.

#154 Franco on 09.03.14 at 4:53 pm

If IG is so bad, then why do many invest with them and why do I get good returns? Are the other investment firms like London Life the same like most banks are the same except that they have different names? Garth are you just blowing your own horn? If you attack one Investment firm, why not attack others? Has IG crossed you in any way?

Read the comments. — Garth

#155 Westcdn on 09.03.14 at 4:54 pm

Oop, my previous post should of said “more than $100 million in their RSP account”

#156 Son of Ponzi on 09.03.14 at 4:55 pm

@Italians love RE.
Seems like the Russians love it even more.
And the Romanians are going crazy over it.
http://en.m.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

#157 jess on 09.03.14 at 5:06 pm

flawed said: We in the PRIVATE sector don’t get gold plated pensions

Seeing through “the banker’s new clothes”: Anat Admati at TEDxStanford

https://www.youtube.com/watch?v=s_I4vx7gHPQ

#158 Blacksheep on 09.03.14 at 5:09 pm

Shawn # 145,

Blacksheep is Dollar Doomer?

Blacksheep at 132 said:

This forced acquisition of $’s by every working Canadian to the tune of 40% of gross incomes, drives demand for Canadian currency.
************************************
Not sure the point here. Clearly almost all working Canadians are paid in Canadian dollars and so there is no forced conversion to Canadian dollars to pay taxes.

If people concentrate on accumulating currenc rather than trying to particularly understand its nature, they will tend to do okay.

Getting so wrapped up in the fear that government’s can print dollars that you stop trying to accumulate said dollars is a bit like refusing to eat (at all) because you heard that food contains additives or causes animal suffering or whatever. Ya still gotta eat.
————————————————–
Good work Shawn. You’ve confirmed, you have absolutely no idea what I’m talking about, yet still feel the need (are paid to?) lecture. Someone smarter than I once said:

“Better to remain silent and be thought a fool than to speak out and remove all doubt.”

#159 gtrz4peace on 09.03.14 at 6:05 pm

#148 FLAWED — Your name is accurate, your whole reasoning and premise, and understanding of the teacher’s strike is FLAWED.

The BC Government has been found in violation of charter by the Canadian Supreme Court 3 times! And most recently, a BC Government “whistleblower” acknowledges in the media that the GOVERNMENT WILL NOT NEGOTIATE NO MATTER WHAT BECAUSE THE PURPOSE IS TO BREAK THE UNION AND NOT TO REACH A SETTLEMENT.

You are seriously flawed, alright. And as far as “gold plated pensions” go — that’s a laugh. My husband is a teacher and makes $50K a year before taxes while working until 10 pm most nights on things for his kids, and this does NOT count the “freebie” things teachers do at school, like competitions, rehearsals for school shows, etc.

You are a TROLL and your time is better spent reading about what is REALLY happening with the strike, and with your country.

Guess what, clueless rich folks? When your strong labor unions are gone so is your middle class — and the market for your goods and services, and the jobs of many of your family members who depend on unions to ensure they have any kind of wage or quality of life.

Many are sharpening the guillotines throughout the US, do you really want Canada to look like them?

#160 Bill Gable on 09.03.14 at 6:07 pm

*Sorry for being off topic – but – would you blog dogs drop nicknames for our host?

I think it’s disrespectful at best and ignorant at it’s worst.

Mr. Turner carries a heavy CV, lightly, and he would never say anything, but I will.

It’s Mr. Turner, or, Garth. Full stop.

*Now back to the topic at hand*.

Apologies for the mini tirade.

#161 };-) aka Devil's Advocate on 09.03.14 at 6:27 pm

RE BC TEACHERS

It’s not about the money it is about classroom size and composition (working conditions). Long gone are the days we farmed off less academic students to “Sunnyvale”. Those students and more are in the classroom today and they add exponentially to the workload such that the academic achievers are suffering due to a lack of attention. But those few high achievers tend to be able to fend better for themselves. It’s the mainstream kids who are suffering the most. Those who benefit best by a good teachers classroom and student management/teaching skills. And by far most are good at what they do. There is far more to the job than babysitting.

Yes BC Teachers would like more money but that is not the paramount issue for the professionals I know.

Their union is not at all appropriately pursuing that which their fellowship wants. The union leadership has on its own agenda which is quite different from that of the membership. The Union and the Government are both acting like children.

And the BC Government? Well just consider the fact that our Premier (Christy Clark) has her own child in a private school. What does that say to you? Why is her child not in the public school system she administers? I don’t know but maybe the aforementioned classroom composition has something to do with it.

In closing, it’d be interesting to know what this strike is costing the BC economy in lost productivity in the private sector as parents cope with children at home instead of school… And then there is the lost teacher wages that otherwise would multiply through the economy now never to be recovered regardless of the wage concessions that may or may not be granted.

#162 gtrz4peace on 09.03.14 at 6:31 pm

CORRECTION TO MY POST: BC GOVERNMENT FOUND IN VIOLATION OF CHARTER 2 TIMES, NOT 3.

GOVERNMENT WHISTLEBLOWER states that the purpose all along of the Government was to provoke a general strike to TURN PEOPLE AGAINST TEACHERS AND BREAK THE UNION.

These are the facts. Fight the Government’s attempt to ruin BC Public Education, or reap the consequences later – they are bad for everyone.

#163 gtrz4peace on 09.03.14 at 6:43 pm

# 161 Devil’s Advocate “In closing, it’d be interesting to know what this strike is costing the BC economy in lost productivity in the private sector as parents cope with children at home instead of school… And then there is the lost teacher wages that otherwise would multiply through the economy now never to be recovered regardless of the wage concessions that may or may not be granted.”

The SARAH PALIN of Canada, Crusty Clark, is costing BC
– her insane offer of $40 a day per child just to keep the strike going — $12 Million PER DAY

For lost income taxes on wages, it is a huge number. We are looking for it, will post when we can.

GOVERNMENT is not the problem but BAD GOVERNANCE is.

JOIN US and fight the real enemy. Hint: It is not the teachers.

#164 Millenial on 09.03.14 at 6:46 pm

Hey Garth,
Don’t forget to buy a ticket for this Friday’s lotto max jackpot – it’s $50million dollars. Good luck!

#165 Italians love real estate on 09.03.14 at 6:51 pm

#156 Son of Ponzi on 09.03.14 at 4:55 pm
@Italians love RE.
Seems like the Russians love it even more.
And the Romanians are going crazy over it.
http://en.m.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

Maybe if you just look at the home ownership rate as you have but I wonder if they view real estate as an investment tool to wealth or is it simply that they wish to own their own home only.

I can tell you that among Italian Cdns. ( Asians as well) real estate is the holy grail of wealth creation.

#166 };-) aka Devil's Advocate on 09.03.14 at 7:25 pm

#163 gtrz4peace on 09.03.14 at 6:43 pm

I should probably clarify that I am, for lack of any reasonable alternative, a supporter of the BC Liberal party. I do however loath hypocrisy which on the matter of education Premier Clark appears to house a significant dose of.

But what really burns my ass is the childish posturing of both the government and union leadership protecting their own agendas between which the teachers are caught. The teachers are ready to settle. I don’t think they’re happy with what they are prepared to settle for but the invisible hand will take care of that in that we are probably facing a deterioration of service in that sector as a consequence of the actions of ALL parties to it.

Seriously, I do believe that the “teachers” understand that there is a budget that needs to be kept to. I think the government needs to understand that to do that will mean a degree of the standard of education from what it has been. Fact is I believe, from what I have seen and heard, the government is OK with that. What I am hearing from teachers now is that they aren’t OK with it but understand that it is beyond their control and that when the public feels the consequence it is the governments shoulders upon which the blame will rest not the teachers for having got a raise – which they at this point don’t appear to want for that very reason.

Basically, I’m hearing teachers say “OK, alright already, you (Gov’t) think you know how to do this? Then have at ‘er. But we’re not supporting it although we are broken and now ready to capitulate to your demands.”

You think education is expensive? Try ignorance.

#167 Upside on 09.03.14 at 10:20 pm

ETFs all the way! I’m currently holding several TSX and NYSE Exchange traded funds which offer me diversification (sector-wise and geographical), and a great deal of profits (SCIF, TUR, for instance). I will NEVER, EVER own a mutual fund!

#168 Harry Wilson on 09.03.14 at 11:18 pm

re #151 Italians love real estate:

I’ve seen many posts from you, don’t love them, don’t hate them, but I never scroll past them. Personally, I have no interest in owning real estate, but I have nothing against those who do share your passion.

Having said that, I’m shoulder to shoulder with you on your comment 151, on racism and prejudice. Here’s hoping Mr. Turner notes the original comment at 141, and at least puts the commenter on his ‘watch’ list.

—————————————–

P.S. Mr. Turner, what prevents less scrupulous investors, say someone with $1M to invest, from putting 10% into the hands of a fee-based advisor, paying them 1% on that $100K and watching what they do, and then doing the same themselves with the other $900K? (Sorry if that’s a dumb question; if it was a clever one, someone likely would have asked it by now.)