Boomer dole

AG modified

Well, after all that moist Millennial angst of the last few days, I hate to bring up this topic. But it appears the feds are set to bring in a Baby Boomer Budget tomorrow afternoon.

That’s right, wrinklies. Break out a fresh oxygen canister. Stick some skull decals on your walker. Take extra Viagra and have the defib machine handy. Find the bellbottoms and the tie-tied headbands. It’s party time, like only a 74-year-old hipster finance minister can deliver, dudes!

So it looks like there are two things you can expect, both designed to help the decrepit ones retain and grow their wealth plus, of course, reduce their tax bill. This is raw politics, even if it’s lousy social policy. The Conservatives know who their loyal fan base is made up of, who gets out to vote consistently, and what they want. Being Boomers, of course, they want it all. Joe Owe is set to deliver.

First, the biggest tax dodge we’ve got is about to be extended. RRSPs favour the rich, of course. The more you earn the greater the benefit. This year you can contribute $24,930 to an RRSP, if you have the money and earn at least $135,000. That will reduce your tax bill by more than ten grand.

Guess who has the most RRSPs? Bingo. The people Mick Jagger begat. There are about eight million RRSPs in Canada which are sheltering almost a trillion dollars from tax (a thousand billion). Until now the day of reckoning was put off until age 71, when RRSPs must be cashed in or converted into in income stream, normally through a RRIF. That stands for ‘registered retirement income fund’ with a minimum annual withdrawal set at just over 7%, rising to 20% by the time you can’t find your teeth and don’t care.

Given the fact people are living a lot longer, that 71 is the new 52, that forcing people to take income can kick them into a higher tax bracket and lose their federal pogey and that people with RRSPs want all the money for themselves, the feds have been under pressure to change this. Thus, it appears the rules will be relaxed. The wrinklies may continue to amass RRSP-sheltered wealth for a longer period of time instead of having it forced into income.

Joe is likely to (a) increase the age at which RRSPs need to be collapsed, perhaps all the way up to 75 and/or (b) reduce the sliding amounts that must be withdrawn annually. This will be widely cheered by all those who don’t want their RRSPs messed with, because they don’t need the money. So you can see the voter appeal. Fortunately for the hippies, all those Millennial kids are too busy Tweeting about not having enough money to notice why!

The second change we’ve already discussed. As boldly forecast on this pathetic blog months ago, tomorrow Ottawa will double the TFSA contribution, effective the first of January. That will blast this thing to $11,000 per year, or $22,000 for a couple. And while TFSAs can be established by every resident, with no special benefits for wealthy people (like RRSPs provide), guess who stands to benefit the most? Right again. The groovy people who are making thirsty underwear mainstream.

A little less than half of Canadians have opened TFSAs, but the vast majority have peanuts in there and use them as glorified savings accounts. In fact a recent BMO survey had shocking results: 80% of all the money put into tax-free accounts has ended up in cash or brain-dead GICs. What are these people thinking, when the gains are sheltered and no tax is payable, ever? They’re not, obviously. A fifth are using TFSAs for holidays and another quarter for saving up a down payment while 40% keep a TFSA for emergency cash.

Oh yeah, and only 18% of people last year made the maximum contribution, which was $5,500. So with 82% of people not taking advantage of what they’ve already got, and sticking most of their money in the bankers’ shorts, why would the feds double it?

Simple. Because this has turned into one sweet tax shelter for Boomers and the wealthy who have maxed out RRSP contributions. They’ll be able to move substantial sums from taxable non-registered accounts into TFSAs, stick them into growth securities, and never pay a cent when collecting the income or be forced into a higher tax bracket. Moreover, since the proceeds are not reportable as income they do not count when it comes to clawing back benefits like the Old Age Pension.

And this is a money machine. A couple putting $22,000 a year into their TFSAs, starting in January and keeping it up for 20 years with a 7% annual return will have $1 million – of which $525,000 is untaxed growth they can spend while still collecting their government cheques. The kids can do the same, of course, save for one problem. No extra twenty-two grand a year.

So, please, whatever you do, prevent the young from knowing this. Or we’ll all be dead by sunup.

218 comments ↓

#1 PM on 04.20.15 at 6:02 pm

Sigh.

I wish my generation voted. Ah well, at least I can sleep past 6 AM without needing to get up and take a leak.

Really I don’t care much about what the federal govt does. I care about what the BoC does.

Really, it’s not that terrible being a millenial today, thanks to globalization consumer goods have never been as cheap. I can buy a TV for the same $600 my dad did in the 1980’s. I just can’t buy a house for the same 2.5x income multiplier he did.

That’ll change when and if the cheap money supply stops and Poloz indicated today that rates will not fall again. In fact he seemed to be of the mind that America is in a better position than previously thought and their rates would rise sooner than later.

So in the mean time I’m going to appreciate that I can buy a months worth of unlimited music for less than an half-hours work while my boomer parents had to pay $15/album with 8 crummy songs in the 1980’s. The little stuff has never been cheaper and that makes standards of living overall better. Some day the big stuff will correct itself.

#2 April. on 04.20.15 at 6:03 pm

I would be interested in your opinions about this:
http://jessefelder.tumblr.com/post/114539830195/how-the-baby-boomers-have-blown-up-the-stock

#3 whitey on 04.20.15 at 6:06 pm

Relax Mr T and all the rest of you wrinklies out there. The generation that can’t be bothered with going to the polls certainly won’t be hunting geriatrics out in the street. More sniveling on Twitter would be my guess. Hopefully this gravy train is still rolling for we of the generation X.

Could this tfsa business turn into another income trust fiasco? Suck em in and chew them up once people are fully invested in the program? There’s something creepy about Harper, I just don’t trust the guy.

#4 Justin on 04.20.15 at 6:06 pm

I’m still unsure how they are going to balance the budget with all these program changes. TSFA won’t hit them right away, but delaying when people have to draw down their RRSP will.

#5 Pedantsniffer Pursuivant on 04.20.15 at 6:10 pm

Heh. You over there, us over here. Same agenda, boomers shafting the young, politicians buying votes. It’s shameful, really – and you all get tax reliefs!

Bloody colonials :-)

#6 A Yank in BC on 04.20.15 at 6:18 pm

Maybe it’s just me.. but I hardly consider people being able to keep more of what is theirs, arguably invested and at work in the private sector, as “lousy social policy”. In the end there is more tax revenue because of it.

“I am in favor of cutting taxes under any circumstance and for any excuse, for any reason, whenever it’s possible.”

— Milton Friedman

#7 None on 04.20.15 at 6:27 pm

“The groovy people who are making thirsty underwear mainstream.”

Now THAT was gold.

#8 Funcouver on 04.20.15 at 6:33 pm

It is how the rich stay rich. Heaven forbid the disaffected learn about the income splitting that goes on between a parent (with his/her own corp) and their kids once the kids hit 18.

#9 Mike S on 04.20.15 at 6:35 pm

“Good for you.

Sorry you’re so sour on people who don’t want what you want.”

I am not sour on these people.
Obviously details are missing from the story, but as it is the given, I would expect to find it on “Million Dollar Journey” blog

Garth blog is about being balanced, investing and enjoying life, Is it not?

#10 JO on 04.20.15 at 6:37 pm

I will benefit from the TFSA increase but it will be taken back and those accounts will come back to haunt you in 5 years. As the economy continues to slowly deteriorate and accelerate into a collapse as you get closer to 2020, future gov’ts will view TFSAs as easy targets

The RSP to RIF changes are a joke. These assh..e geezers bought houses for nothing, educated themselves and their kids for nothing, and now want to pay no taxes through these measures including the disastrous income splitting just as their health care spending explodes.

And of course all that govt debt accumulated along with the CMHC scam will come together to destroy the under 50 crowd but especially the under 30 crowd

Income equality is a minor issue compared to generational inequality

The good news is that it remains extremely likely that between 2020-2025, in the aftermath of this debt bubble and sovereign debt crisis, most of these geezers will be left financially destroyed as inflation and pensions and major benefit cutbacks all conspire to take away much of what they thought they got. At least for the young, we will have decades to recover. The markets massacre the majority and just as the largest generation expects to sail off in the sunset, they have something else coming for them

Punks

#11 TurnerNation on 04.20.15 at 6:37 pm

Pizza pizza (PZA) raised its dividend today. There’s money at the low end (also, see Dollarama).

#12 Financial Freedom at 40 on 04.20.15 at 6:41 pm

Back to the spreadsheet – how to budget $916 a month (up from $458) pre-authorized payment to the TFSA in the discount broker account. It’s #3 on the priority list of pay-my-future-first (#1 matched defined pension contribution, #2 matched stock option deductions, followed by #4 group RRSP).

#13 Willy H on 04.20.15 at 6:42 pm

” The groovy people who are making thirsty underwear mainstream.”
___ ___ ___

LMAO – nearly had an accident reading this!

#14 everythingisterrible on 04.20.15 at 6:48 pm

In the end, the next generation gets all that wealth one way or another . Can’t take anything with you.

#15 Willy H on 04.20.15 at 6:49 pm

(a) increase the age at which RRSPs need to be collapsed, perhaps all the way up to 75 and/or (b) reduce the sliding amounts that must be withdrawn annually.
__ __ __

Certainly will appeal to the Reformicon demographic providing they understand what these changes really mean. Considering most folks can’t wrap their heads around TFSA’s how can we expect our next batch of retirees to comprehend changes to RRIF’s when they are still busy squirrelling away a few measley nuts for their golden years?

#16 Balmuto on 04.20.15 at 6:51 pm

There is absolutely no reason to have investments outside a TSFA (other than in an RRSP) unless your TSFA is maxed. Why pay tax on interest, dividends or capital gains if you don’t have to? A TSFA brokerage account is no different than a non-registered one – you have all the same investment options, including DRIP programs. Unless you know you’re going to use the proceeds in the near future I guess. The only stocks I’m holding right now outside are in my company’s share purchase plan. Even then I’m thinking I should move those shares once a year (which I can do without penalty) into a TSFA and enroll them in a DRIP. Then it would be the same as leaving them in the company plan except future dividends and capital gains would be tax free. I’ll have a deemed disposition every year which is annoying but otherwise it’s a no-brainer, isn’t it? The safer stuff can go in my RRSP.

#17 Marco Polo on 04.20.15 at 6:56 pm

I’ve seen a few new listings for Edmonton, asking prices are about $40K less than last year for some decent homes that were above $350K then. The local realtors will tell you ‘all is well’, but there is now competitive downward pressure from sellers due to a glut of listings and reduced demand. Greater CMHC fees and perhaps higher US interest rates this summer should knock this housing tree down. It was a bit old and top heavy anyway. Who will want lower yield european bonds this summer when the US offers a slightly better return and less sovereign risk?

#18 Henry on 04.20.15 at 6:58 pm

The TFSAs are a stealth way for the Conservatives to eliminate the capital gains tax. It’s a bit of a stretch to claim that the oldies will benefit from this in great numbers. This will mostly benefit the wealthy of all ages. The rich will be living almost tax free very soon. Welcome to the Canadian oligarchic society. The peasants should doff their hats

#19 Willy H on 04.20.15 at 6:59 pm

The wildcard with all these changes to RRSP’s is what the income tax rates be when folks start to withdraw. Will the GST be back to 7% or even higher?

Government programs, specifically medicare aren’t cheap.

Economic growth is not going to make up these revenue short-falls. We’ve already seen the “B” movie back in the 1980’s!

#20 bob on 04.20.15 at 7:04 pm

What is thirsty underwear?

#21 TS on 04.20.15 at 7:06 pm

If Gen Y and Gen X think that Boomers are getting all the benefits in life, we could you know……

stop buying their houses for 10-15 times what they paid for them.

#22 David Lee on 04.20.15 at 7:12 pm

From Peter Ladner (the guy who unfortunately lost to Moonbeam in 2008):

“Any move to dampen housing demand hinges on a gnarly political choice: improve housing affordability for new buyers or protect the soaring equity of existing homeowners. So far, that’s not a fair fight”.

http://www.biv.com/article/2015/4/homeowner-equity-vs-housing-affordability-tricky-b/

I’m sorry to say this, but a CON majority is assured by feeding the housing insanity (or at least preserving it) for the benefit of the majority that votes (boomer homeowners and the Kool-Aid drinkers waiting for a greater fool).

It’s just that simple: preserve this group’s equity and the Conservatives win a majority. Whatever happens with Duffy-gate, whipping out our CF-18s abroad, murdered aboriginal women, etc. is just white noise to this majority.

#23 NOTHING SURPRISES on 04.20.15 at 7:15 pm

The earliest U.S. interest rates will begin to rise will be the Fall of 2016

#24 bob on 04.20.15 at 7:18 pm

Garth – your daily blog offers great insights.

What do you think about imposing higher consumption taxes? That way, it is no longer about rich vs poor. If you consume more, you pay more… with the theory that if you are wealthy, you will consume more (buy luxury homes, cars, clothes, etc.)

I don’t think this will ever happen because the average person is stupid. Look at the HST in BC.

But I think this would be good policy and worth changing the masses opinion.

#25 David on 04.20.15 at 7:24 pm

In the end there is more tax revenue because of it.

This is untrue. Did the US economy boom after the Bush tax cuts? Did Clinton’s increases prevent a boom?

#26 @post #1 on 04.20.15 at 7:25 pm

Get 2 passports. Let the young here who don’t vote support the boomers into retirement with their tax dollars. Come back after they’re gone. Them not voting is a win win.

#27 Bobs ur uncle on 04.20.15 at 7:28 pm

#6 A Yank in BC on 04.20.15 at 6:18 pm

“I am in favor of cutting taxes under any circumstance and for any excuse, for any reason, whenever it’s possible.”

— Milton Friedman
****

I like a different spin:

“I like to pay taxes. With them, I buy civilization.”

― Oliver Wendell Holmes Jr

Not gonna stop me from using that extra TFSA room though.

#28 PM on 04.20.15 at 7:30 pm

The TFSAs are a stealth way for the Conservatives to eliminate the capital gains tax.

It’s only been $5K a year so far. That’s not a lot for the wealthy. When people are avoiding $250K in capital gains call me.

Welcome to the Canadian oligarchic society. The peasants should doff their hats

You sound like a drunk on the curb. Stop talking like that or stop drinking on the street.

#29 Squirrel meat on 04.20.15 at 7:30 pm

Boomers gonna drain the health swamp. Tough cookies kidults.

#30 vlad the inhaler on 04.20.15 at 7:36 pm

In 20 years a Leaside bungalow will cost 3 million.

#31 Smartalox on 04.20.15 at 7:42 pm

Are all these changes ‘subject to Parliamentary approval’, as in won’t happen until the Conservatives win the coming election?

#32 deaner on 04.20.15 at 7:45 pm

Anyone have any data on how much Canadian tax revenue is lost to tax havens? Wouldn’t this help combat that?

I’ve said it before, but I’m surprised how rarely “Cayman Islands” is mentioned on this blog or comments.

Btw. Old people suck and are stupid. The Flynn Effect proves it. I would guess that the “Flynn Effect” is strongest in the public sector where credentialism is most rampant.

#33 Setting the Record Straight on 04.20.15 at 7:56 pm

@#55 Happy in Kelowna on 04.19.15 at 5:54 pm
Garth, You have written in the past that people with $1 Million in investible assests were considered the wealthy 1%. Now you say it is $2 Million. I have read the $1 Million figure elsewhere too. Have things changed?
Thanks

&&&&&&&&&
Garth said that 2 million made you part of the one percent of Canadians with 2 or more million.

To be part of of the wealthy one percent, that’s the .01 percent of allCanadians you would need far more than 2 large.

Two million makes you middle class.
People persist in calling middle income workers middle class. This is delusional, as we can see from the angst of middle income workers being unable to afford to buy decent housing.

I do not know if the middle class is shrinking. Middle income jobs seem to be in decline.

#34 Sol on 04.20.15 at 7:58 pm

It troubles me that you and the media refer to the TFSA as only benefiting the rich. Those without a mortgage to pay but rent an underwhelming apartment can also benefit.

#35 life is good on 04.20.15 at 8:01 pm

Great stuff here garth,

http://www.fool.ca/2015/04/20/garth-turner-on-the-3-big-mistakes-canadian-investors-make/

#36 Linda on 04.20.15 at 8:02 pm

#32 deaner – unless you can keep from getting older (good luck with that) you too will one day ‘suck & be stupid’ though frankly it sounds like you have achieved that already.

Further to that, the ‘old people’ have (as per the young) the best jobs, the nicest houses, the largest pensions, the most health care etc. etc. Gee, those ‘stupid’ oldies sure seem to have things working for them – wonder how they managed it……

#37 life is good on 04.20.15 at 8:04 pm

…and here…

http://www.fool.ca/2015/04/20/how-safe-is-your-retirement-from-canadas-housing-bubble/

#38 daivey on 04.20.15 at 8:09 pm

TFSA is great except that the brokerage wont let you leverage and go on margin :(

#39 Setting the Record Straight on 04.20.15 at 8:12 pm

@Nora Lenderby on 04.19.15 at 7:36 pm
#49 Setting the Record Straight on 04.19.15 at 5:21 pm

Electing new politicians over and over again and expecting different results is a definition of insanity.
The problem is the State, not who is currently running it for their own benefit.

I’d say that the present Canadian Federal government has produced different results in a number of areas. Certainly there appears to be no plausible attempt to stop excessive lending for mortgages.

Perhaps it’s deliberate. Get a large segment of the population addicted to house debt, then throw them a few crumbs to get re-elected.

More likely they just don’t care enough, people are easily bribed with their own money, and I’m just being a silly old lady.

I am reminded of the late Margaret Thatcher (the former British PM, not the cat). Some British people were always hot for housing, but her government really pushed a lot more poorer people into home ownership in the belief that they would thenceforth always vote Conservative.

Once you’ve got them hooked they have to become more economically active or lose their precious stuff.

$$$$$$$$

You confuse the developments that have manifested themselves in the last decade or so as somehow uniquely associated with the Conservatives. Two critical factors CMHC and a central bank have been with us for over 50 years. Add in high levels of immigration, global meltdown, a Keynesian mixmaster, and voila …double double toil and trouble!

Do you think that interest rates would have been raised by any central bank/govt party combination post 2008?
Do I hear the NDP or Liberals promising to make mortgages harder to get?

The problem is the existence of the CMHC and the existence of the central bank.

Harper is the right wing of the socialist movement.

#40 don astill on 04.20.15 at 8:17 pm

David #25 Apples and oranges, Clinton’s “boom” happened because of the age and debt taking abilities of the boomers at that time. Bush’s bust was essentially the private credit markets reaching peak debt and beginning down the other side of the mountain. By the way we are still there, the last six years not withstanding.

#41 Republic_of_Western_Canada on 04.20.15 at 8:20 pm

#16 Balmuto on 04.20.15 at 6:51 pm

There is absolutely no reason to have investments outside a TSFA (other than in an RRSP) unless your TSFA is maxed.

Sure there is. No margin available on registered accounts.

#42 Millmech on 04.20.15 at 8:21 pm

Rrif to be moved to 75, when you look at how long people actually live for and that they will not want to pay taxes on rrsp withdrawals(can use TFSA for income no means test),brilliant move so when people pass away the rrsp is fully taxed as redeemed upon death.The boomers will be giving it all back at 54%,I personally don’t know a lot of elderly making it past 90,so now you have four more years of growth and four less years to draw it down.Rather than a slow lower tax draw down it will be all at once with the estate.

#43 BS on 04.20.15 at 8:22 pm

4:

I’m still unsure how they are going to balance the budget with all these program changes.

The increase in the TSFA will reduce RRSP contributions as there is only so much money people have to save. RRSP contributions hit the government pocket book right away with tax refunds and continue to as gains are tax sheltered until withdrawal. TSFAs make very little difference short term to tax revenues as there is no refund after contribution. The TSFA increase will actually increase tax revenues short term by diverting away RRSP money and help balance the next few budgets. That is probably why they are doing it. Harper will be long retired by the time the TSFA increase catches up and tax revenues are actually decreased due to it.

#44 young & foolish on 04.20.15 at 8:22 pm

“Economic growth is not going to make up these revenue short-falls.”

We will never see honest debt elimination in our life-time. Central banks will buy government debt, charge interest, then return the interest to the treasuries. Financial engineering will be required to keep the pitchforks in the barn and “civilization” from turning ugly.
So what does this say about “returning to the mean” and “three times earnings”? Probably better not to hold your breath waiting for them.

#45 Republic_of_Western_Canada on 04.20.15 at 8:23 pm

#18 Henry on 04.20.15 at 6:58 pm

The TFSAs are a stealth way for the Conservatives to eliminate the capital gains tax. It’s a bit of a stretch to claim that the oldies will benefit from this in great numbers. This will mostly benefit the wealthy of all ages. The rich will be living almost tax free very soon. Welcome to the Canadian oligarchic society. The peasants should doff their hats

You say that like its a bad thing…

#46 Ben on 04.20.15 at 8:27 pm

Garth – don’t worry the boomers will object on moral grounds. After all voting the younger minority into debt serfdom is simply mob rule. Yes they’ll vote with their conscience for what’s right.

I jest. Kids, if you want to know how we got self-centred psychos check this out:

http://topdocumentaryfilms.com/the-century-of-the-self/

#47 Washed Up Lawyer on 04.20.15 at 8:29 pm

#36 Linda

“Gee, those ‘stupid’ oldies sure seem to have things working for them – wonder how they managed it……”
***************************************

I think that part of the answer might be that in 1975 the summer job I had as a garbage man in Calgary paid me $5.50 per hour. According to the BoC inflation calculator that is $24.81 in 2015.

A semester at university was, I’m guessing, $400.00.

My pals who obtained a B.A. in History landed permanent, remunerative and full time employment as land agents for major oil companies.

A common practice was to use student loan proceeds for a trip to Greece upon graduation prior to starting work.

Times, employment prospects etc. were very different then.

My young adult children, not so much.

#48 slick on 04.20.15 at 8:30 pm

#16 Balmuto;
1st] there are a few differences between accounts.
You cannot hold short positions in a TFSA, or any registered account.
2nd] if you can pull your company shares out, without penalty, I’d suggest that you do so, then sell them and replace them with something else. All your eggs are in one basket, if the company goes udder up, your shares go to zero, along with your income. DIVERSIFY!
slick

#49 Freedom First on 04.20.15 at 8:31 pm

Being a Boomer myself, I think the RRSP’s and TFSA’s have both been great plans for Canadians. However, another thing I would like to see, and this would benefit everyone, especially the low income group, is to have the taxable income level raised to about $30-$40 thousand per year before any tax is deducted.

#50 Smoking Man on 04.20.15 at 8:31 pm

Great pic, I bet some people would actually buy it. Open it and smell inside the bag…

Curiosity, its human nature.

#51 BS on 04.20.15 at 8:37 pm

22:

“Any move to dampen housing demand hinges on a gnarly political choice: improve housing affordability for new buyers or protect the soaring equity of existing homeowners. So far, that’s not a fair fight”.

The bubble is not about protecting current home owners. It is about the economic spin offs from the wealth effect of those home owners who borrow and spend and the economic benefits of people building the houses, condos, etc. No current home owners gain anything unless they sell and do not buy again. Not many are doing that so few home owners are really benefiting, other than psychologically.

Without high oil prices all Canada’s economy has left is housing.

#52 old gringo on 04.20.15 at 8:42 pm

It seems forgotten that while us old geezers were buying homes in N.Vancouver 40 years ago for $24,000, we were doing it earning $1.85-$3.65 per hour. I remember working 80-100 hours a week to make ends meet.
Houses in Chartwell W.Van were over $80,000 and we thought that was NUTS.
just thinking!

#53 Leo Trollstoy on 04.20.15 at 8:43 pm

In the end, the next generation gets all that wealth one way or another . Can’t take anything with you.

Amen.

#54 pwn3d on 04.20.15 at 8:44 pm

#20 bob on 04.20.15 at 7:04 pm
What is thirsty underwear?

————-

It depends who you ask…

#55 Ben on 04.20.15 at 8:45 pm

Everyone has stories of working hard weeks – whatever the generation. Life is harder now. The whole “you have Ipads now” thing is a load of nonsense. We have no financial security. And before anyone else says it no cutting back on a mobile phone will not give you $400K for a house.

It’s the total indifference that stinks the most. The young are the new blacks and Irish – castigated as lazy by those living off their hard labour.

#56 Karma on 04.20.15 at 8:46 pm

#168 Victor V on 04.20.15 at 5:14 pm
“Vancouver named unhappiest city in Canada

http://www.vancitybuzz.com/2015/04/vancouver-unhappiest-city-canada-life-satisfaction-survey/

It’s a Monday morning, the sun is shining and the spring birds are chirping, but walking down Georgia Street during the morning commute you don’t see many smiles. If you’ve lived here all your life, you may be surprised to learn that this is not the norm – Vancouver is in fact the least happy city in Canada.

In a survey released this week, Statistics Canada revealed that of 33 census metropolitan areas in Canada, Vancouver ranks the lowest in life satisfaction.”

Thanks for the link. I am not surprised at all. Vancouverites are too obsessed with housing. A new hashtag is warranted for Vancouverites: #unsubscribefromMLS

I firmly believe that too many millennials subscribe to a realtor and receive emails on a daily basis about recent sales. This likely increases anxiety and their stress levels.

#57 Ben on 04.20.15 at 8:48 pm

The idea that there is simply a pool of wealth is wrong – for example if one generation leaves behind a pile of debt and decaying infrastructure, plus if they have sold off national assets and/or land abroad.

Really you guys need to just try thinking.

#58 hahha - if 25-35y would VOTE - that might be a even larger disaster :) on 04.20.15 at 8:50 pm

hahha – if 25-35y (twister campaign texters) would VOTE – that might be a even larger disaster :)

my guess is they’ll vote for the UPPER KLASS parties – when they are in the poor house… (no million campaign, right?) and should be voting LOWER-KLASS parties for next decade, lol

WHO WANNA DARE BET????? kiddos, do a survey on twoster

#59 Washed Up Lawyer on 04.20.15 at 8:55 pm

#49 Freedom First

“However, another thing I would like to see, and this would benefit everyone, especially the low income group, is to have the taxable income level raised to about $30-$40 thousand per year before any tax is deducted.”
*************************

Exactly. Your ideas for tax and social reform are better than your dating advice. ;-)

Keep it coming.

#60 Squirrel meat on 04.20.15 at 9:02 pm

#50 Smoking Man on 04.20.15 at 8:31 pm
Great pic, I bet some people would actually buy it. Open it and smell inside the bag…

Curiosity, its human nature.
——————-

http://youtu.be/hTWKbfoikeg

#61 jamitontheone on 04.20.15 at 9:05 pm

oh but why would we do all that? we have the ON libs letting us sign up to the mandatory ontario pension plan. everything will be ok!!

#62 SWL1976 on 04.20.15 at 9:08 pm

Another solid post Sir Garth,

Buying votes is disgusting practice, but fitting for our current CON goberment. This group of Federal Cons we have has been, and is terrible for Canada. They are mere laps dogs wanting a seat at the globalist table. Garth being ejected from this group says a lot about both Garth’s character, and about their ultimate agenda

I will cast my ballot in the next Federal election, but that doesn’t mean I can’t see through the smoke and mirrors. I think Mark Twian hit the nail on the head with this one… “If voting made a difference, they wouldn’t let us do it”

Personally I think our gracious host and all of us social misfits who contribute here could manage this country better than our ‘elected officials’ but than again we aren’t suck holing to the bilderburg’s for constant approval

Don’t be a coward Stephen, do what’s right despite what you are being told to do

#63 Retired Boomer - WI on 04.20.15 at 9:09 pm

WOW!! Canada gives working people two GREAT WAYS to save for their own wrinkly future.

A double on TFSA (our ROTH) and maybe delays in emptying their RRSP’s (our 401-K) which might include an employer match!!

No matter your age, these are wonderful for you -assuming you aren’t house poor. If you are around 40 and can fund both (at least to capture any employer match, after all that is “free money”) and fully fund your TFSS in good growth ETF’s no reason yu should not be able to retire a millionaire!

We shall see who is smart, and who is not.

#64 kommykim on 04.20.15 at 9:14 pm

RE: #20 bob on 04.20.15 at 7:04 pm
What is thirsty underwear?

It’s the type that likes lemonade.

#65 Karma on 04.20.15 at 9:18 pm

#30 vlad the inhaler on 04.20.15 at 7:36 pm
“In 20 years a Leaside bungalow will cost 3 million.”

In 20 years, there will likely be the same amount of deaths as births in Canada. In 30 years, there will be many more deaths than births in Canada.

#66 everythingisterrible on 04.20.15 at 9:30 pm

#36 Linda
“Gee, those ‘stupid’ oldies sure seem to have things working for them – wonder how they managed it……”

Destroying the environment and plunging the country into debt come to mind.

#67 Mark on 04.20.15 at 9:36 pm

Anyone want to speculate on what a non-Conservative government will end up doing to the TFSA and all these RRSP rollbacks in a budgetary crisis (ie: CMHC-induced!).

TFSA is great except that the brokerage wont let you leverage and go on margin :(

Call options can be used in a TFSA if you so desire.

I’ve made the point in previous posts, so won’t re-hash my previous arguments, but expansion of registered/trusteed accounts is something that I personally view as quite negative. The government should be striving to fix the fundamental reasons why people might want to use such, rather than simply expanding such. RRSPs/TFSAs/RPP’s, etc., are merely band-aids to far more serious deficiencies in tax policy, and worse, they act as ‘fences’ that reduce the flexibility of capital allocation within the Canadian economy.

#68 Balmuto on 04.20.15 at 9:36 pm

“No margin available on registered accounts.”

Okay, good point, I stand corrected. Long options and covered call positions are allowed, however.

“if you can pull your company shares out, without penalty, I’d suggest that you do so, then sell them and replace them with something else.”

Yeah, I’ve made the same argument myself before. But I do like the feeling of being part-owner in the company I work for. Makes me feel like less of a wage-slave. And it does give me extra motivation at work, even if what I do barely matters.

#69 Millmech on 04.20.15 at 9:38 pm

Ben
A lot of the immigrants that you say we were indifferent to would take any job they could and would work two or three of those
McJobs that the millenials wouldn’t dare touch as it is beneath them.They worked hard their whole life without a complaint and made something of themselves,they demanded nothing from our country other than to belong.Nothing is owed to us,we all have the opportunity to succeed by our own efforts if we so wish.

#70 WHY PAY MORE on 04.20.15 at 9:38 pm

#38 #41

http://www.questrade.com/trading/services/margin_power

#71 Boomer dole | Realties.ca on 04.20.15 at 9:40 pm

[…] Source: http://www.greaterfool.ca/2015/04/20/boomer-dole/ […]

#72 TurnerNation on 04.20.15 at 9:43 pm

Elites turning us into 2nd world country. Huddled in concrete sky box, candles. The Prefecture Block Captain is monitoring your electricity usage. Do not be selfish. Think of others.

I can’t wait for the next elected party official to swear “Jobs for working families just like you”.

“The Ontario Energy Board (OEB) announced new time-of-use pricing Monday that jacks up the peak rate to 16.1 cents kWh from 14 cents kWh, effective May 1.

It will be more than twice as expensive to use electricity between 11 a.m. and 5 p.m. on weekdays than at night or on weekends.

A typical household will see a $5.71 or 4.6% jump in their monthly hydro bill based on the new pricing, the OEB says.

Ontario Progressive Conservative MPP John Yakabuski said the figure used by the OEB to estimate the impact on bills is just an average, and many people will see a bigger increase on top of years of rising prices

Ontario’s hydro rate is the second highest in Canada, behind PEI, and more than most jurisdictions in the United States, he said.”

#73 TurnerNation on 04.20.15 at 9:47 pm

Conservation at home. For the war effort, you know.
Ja ja, the war has come home. Did it ever leave us?

“Premier Kathleen Wynne said the new on-peak/off-peak rate differential should encourage conservation which ultimately helps keep bills down.”

#74 Uncommon Sense on 04.20.15 at 9:53 pm

Ahhhh I am waiting with bated breath like a kid on Christmas morning for the official announcement tomorrow that they will be doubling the TFSA contribution limit!
Can’t remember the last time I’ve been this giddy with excitement!
I cannot thank you enough for showing me the light Garth – I did just as you said – maxed out my and my husband’s TFSAs with high growth stuff, before contributing to RRSPs.
I would be ever so grateful if you could share your take once again on RRSPs vs non- registered accounts (once TFSAs are maxed out), for those of us that have vile physical reactions to the thought of paying exorbitant taxes later in life.
Thanks Garth!

#75 A Yank in BC on 04.20.15 at 9:55 pm

#25 David on 04.20.15 at 7:24 pm

“This is untrue. Did the US economy boom after the Bush tax cuts? Did Clinton’s increases prevent a boom?

You cannot make such a generalization, because there were far too many other factors at work in the economy during those two very different times to ever make fair comparisons between them. But since you mention the so-called Bush tax-cuts.. it is worth noting that they continue largely unchanged today, having been extended twice under the Obama administration.

#76 Musty Basement Dweller on 04.20.15 at 10:03 pm

Cool. Congrats to the hedonistic sun seekers. Now if Joe O could only ensure that the dollar goes back up we’d be able to get back to Arizona and Florida this fall and all would be wonderful.

#77 Karma on 04.20.15 at 10:04 pm

Food for thought…

http://www.bloomberg.com/news/articles/2015-04-20/mine-bust-halves-home-prices-in-australia-outback-as-jobs-vanish

#78 dosouth on 04.20.15 at 10:11 pm

The lesson here is get out and vote or stop your whining….

Won’t happen as if you can’t do it on-line or with an app then easier to B&[email protected] on social media

#79 Ben on 04.20.15 at 10:11 pm

The argument that immigrants will do badly paid jobs is not a good one. Perhaps the poster would be happy if we only took immigrants from torture rehabilitation programs and worked them to near death, then we could be more “competitive” and pensioners could take an 80% cut of all labour. Would the labourers be happy? Well it’s better than the worst fate in the world, right?

That’s the benchmark is it? Not a fair exchange of labour like people used to get, but a race to the bottom.

We can always find unfortunate souls to do the job. How about you stop playing arbitrage between desperate immigrants and disenfranchised young Canadians and be a man.

Ask yourself the question: where are my unfunded pension payments coming from? Why is my house now 15 times the average wage? What does this bode for the future?

Shrugging and muttering something about globalisation isn’t really going to cut the mustard.

#80 Bottoms_Up on 04.20.15 at 10:11 pm

#1 PM on 04.20.15 at 6:02 pm
—————————————————-
The fact that you have a better tv and cheaper music does not offset the actual reduced standard of living (that is, needing 2 incomes to lead a middle class lifestyle; and still not being able to afford hard assets such as a cottage, boat, motorbike, jet skis, etc. etc.). Think about it. The standard of living has NOT gone up.

#81 pete on 04.20.15 at 10:12 pm

Harper has got to go. His crazy neo-cons are the craziest crazies Canada has ever seen. Harper has done so much damage to Canada that’s it’s hard to keep up. The secret free trade deal with China. If you are Canadian and you love Canada get out and vote for anyone other then harper. Even his own members are walking out on him. Harper makes brian mulroney look like a saint.

http://www.thestar.com/news/gta/2015/04/19/could-armed-us-border-guards-be-coming-to-union-station.html

http://www.huffingtonpost.ca/2012/11/08/rick-mercer-canada-china-deal_n_2094126.html

http://thetyee.ca/Opinion/2014/09/15/Harpers-FIPA/

#82 Ben on 04.20.15 at 10:12 pm

In case that last one was too subtle for you:

boomers have to man up and stop voting to stuff their own pockets with dollars of wealth generated by the young. Your parents didn’t do it.

#83 LL on 04.20.15 at 10:17 pm

The latest view is the Fed rate will rise in September. Seems reasonable. — Garth

September??? Which year??
I will believe it when I will see it!

#84 FrozenNorth on 04.20.15 at 10:19 pm

@#16 Balmuto
The TFSA, while extremely useful, does not have the same investment options as a non registered account. You cannot trade short options other than a covered call and you cannot trade futures or futures options.
That is a fairly significant restriction for option traders, and one of the reasons I keep a non registered account besides the TFSA.

#85 nexgendog on 04.20.15 at 10:26 pm

Garth

Re. 1% management fee for investment advice, is this based on assets under management, or is it 1% of the returns made in a given year. What about several consecutive years of losses…are the advisor fees refundable?

On a separate note, in the tech age, why does an investment advisor like you have to pay exorbitant rents to stay in a Hogtown hovel….why not live in a nicer place, like Muskokoa, PEI, Vancouver Island, or Mexico and do the advice online….or are too many clients dinosaurs who insist on a face to face occasionally(maybe cross-provincial restrictions as well?)

#86 Christopher Lackey on 04.20.15 at 10:27 pm

Generations are not monolithic. Irresponsible people of all ages withdraw from their RRSPs all the time. There are young people who know how to tune out all this noise about how shitty their prospects are and go for opportunities to amass wealth and there are people in their fifties and sixties with 10 bucks in the bank living on payday loans and credit card cash advances. I realize the bulk of housing and RRSP assets are in the hands of boomers but people might be less confused if we reminded them that everyone has the same rights and personal responsibilities. It’s so much more productive than this lame “boomer vs millenial” meme. Of course that nauseating BS about “my kids maybe not being as well off as me” is like crack to our politicians, so expect to hear a whole lot more given that we are in an election year.

#87 nexgendog on 04.20.15 at 10:28 pm

Anyone thinking of being a slumlord, watch this TV show, lots of laughs…..need ex-Marines to jostle with tenants etcetc…

http://en.wikipedia.org/wiki/World's_Worst_Tenants

#88 Mark on 04.20.15 at 10:38 pm

“#38 #41

http://www.questrade.com/trading/services/margin_power

http://www.questrade.com/pricing/DIY-Trading/fees-and-rates/interest-rates

Mon Dieu!! You’ll go broke paying those interest rates!

#89 A Believer on 04.20.15 at 10:38 pm

As a senior, I flinched at tonight’s blog. It doesn’t matter how much you deny, or fight it, you all will get older. The trick is to make the very best of what you have at the time and carry on. We had our share of attics and basements to live in, poor job prospects, babies,and health issues. Not all of us are in the top income brackets either.You have to rejoice at another day of sunshine and life!

#90 Interstellar Old Yeller on 04.20.15 at 10:46 pm

Interesting. Looking forward to the details of the RRIF/RRSP changes. I guess most Millennials just need to hope the extra cash trickles down from the Bank of Mom & Dad. A lucky (small) subset will actually have the money and smarts to take advantage of the tax sheltering.

#91 Cici on 04.20.15 at 10:49 pm

#20 bob

Depends (that’s the big brand name).

They’re adult diapers…haven’t you seen all the ads? I don’t even watch TV, but somehow I can’t seem to escape them…and the people in those ads are getting younger and younger.

Maybe I should buy some stock. I’m thinking that inconstinence might be the ticket to an early retirement.

#92 leslie on 04.20.15 at 10:49 pm

no way the world can operate by everyone putting money away and retire wealthy in 20 years by compounding 7 percent growth in their investment accounts.. how can we have everyone getting paid by their investments and not working… this is obviously not sustainable if everyone does the same thing. To get your 7 oercent..someone has to spent their income and get into debt for more stuff

#93 Cici on 04.20.15 at 10:56 pm

#32 deaner

“Old people suck and are stupid.”
______________________________________________

No, you are just too stupid to realize that most of them are much, much smarter than you.

Shut up, you are giving the Millenial majority a bad rap.

#94 Kirk on 04.20.15 at 10:58 pm

[email protected] actually stuck her tongue out at me when I declined mutual fund advice and told her I mostly use ETFs. It was an instinctive, reptilian thing – such an awesome moment!

#95 Ben on 04.20.15 at 11:13 pm

Another very common one I see often from older people who are financially secure is along the lines of “at least you have your youth”. Again this is a weak defence against bad behaviour. I’m pretty sure all people who are old now with unfunded pensions and expensive houses were young once too. You’ve had your go at this but you did it without having your lives financialised so you were saturated in debt.

Everyone who is old was once young. Yes you appreciate it more now – but you didn’t when you were young. That’s part of the beauty of youth.

But when you were young you got a fair crack at the whip. Your parents weren’t voting en-mass to enslave you for their piece of the pie.

#96 Led on 04.20.15 at 11:22 pm

is this a real estate blog anymore?

#97 Fuzzy Camel on 04.20.15 at 11:25 pm

The boomers are screwed. They bought into a failing ponzi scheme. Get ready for problems when those rates go up.

Until then, everyone is having a house-gasm and willing to borrow any amount the bank will give.

I’ve noticed the roads are very slow lately, lots of idiots doing 20km/h is a 50km/h, they are all gawking at houses. Saturdays are the worst around here.

I love the immigrants, they work cheap and want cash, refuse to pay taxes, my kind of people. If the government calls them on it, they bail the country. I like them more than the waspy Canadians who pay taxes. The more taxes you pay, the more government you get, and more taxes.

My point? As the waspy Canadians die off, the new immigrant workforce is quite saavy, and quite adverse to paying taxes. So if the government thinks it can boost tax revenue by flooding Canada with immigrants, they are in for a shock. lol…I love em. Travel, you’ll realize how lame Boobus Canadianus is, bunch of sheep.

#98 Fail Mail on 04.20.15 at 11:35 pm

Longtime reader & lurker.

Came here to high five the consistently on-point Ralph Cramdown for his vigilance yesterday. Just doing it sometimes just doesn’t cut it. Thanks Ralph.

#99 will on 04.20.15 at 11:40 pm

yup. i’ll take the double double tfsa and the delayed rrif. but i won’t vote for them. because i’m conservative and they’re not.

#100 Bobby on 04.21.15 at 12:06 am

For #81 Pete,

Who you gonna vote for? You could always choose Mulcair, but let’s be honest the NDP will never govern Canada. Of course, there’s Mr Trudeau but he can’t make up his mind whether he is for or against something. He wonders why his butt is sore sitting on both sides of the fence.
The winner is obvious, but many like yourself don’t get it.

#101 coastal on 04.21.15 at 12:21 am

It’s nice to know the Asian money coming into Vancouver has been scrubbed clean, with the help of close relatives of course. That’s at least if you don’t get caught. How many houses can you buy in Van for $480 million ??

http://www.courts.gov.bc.ca/jdb-txt/SC/15/05/2015BCSC0590.htm

#102 nonplused on 04.21.15 at 12:22 am

No worries about the young Garth, they will inherit the earth same as we did.

You cannot escape the fact that you have a “best before” date, even if you can’t read the label because the print is so tiny.

20 years from now, maybe only 10, the gen-x and millennials will have nothing to worry about except whether or not they can make your funeral.

#103 Bailing in BC on 04.21.15 at 1:32 am

#52 old gringo on 04.20.15 at 8:42 pm

“It seems forgotten that while us old geezers were buying homes in N.Vancouver 40 years ago for $24,000, we were doing it earning $1.85-$3.65 per hour”

Full time employment at the upper end of this pay scale would allow you to purchase a $24,000 house at just over 3 years income. I think you just proved every bodies point.

#104 Tony on 04.21.15 at 1:33 am

For the wealthy the maximum amount for TFSA’s is like a couple of coppers to run together in other words meaningless.

#105 PM on 04.21.15 at 1:33 am

It seems forgotten that while us old geezers were buying homes in N.Vancouver 40 years ago for $24,000, we were doing it earning $1.85-$3.65 per hour. I remember working 80-100 hours a week to make ends meet.
Houses in Chartwell W.Van were over $80,000 and we thought that was NUTS.
just thinking!

Come on, I know math has been taught in schools for a century. That means that at minimum wage it used to take 12,000 hours to buy a house and today at $2M and $10/hr it takes 200,000 hours. That’s a 16x increase. Just thinking.

#106 BS on 04.21.15 at 1:35 am

85:

What about several consecutive years of losses…are the advisor fees refundable?

OMG that was funny!

#107 BS on 04.21.15 at 1:39 am

Ben 82:

boomers have to man up and stop voting to stuff their own pockets with dollars of wealth generated by the young.

Why don’t the young ‘man up’ and:

1. Start voting
2. Stuff your pockets with all that wealth they are generating

Start with number 1 first. It isn’t that hard. After you do that maybe you will realize you are not generating wealth by sitting in your parents basement complaining.

#108 Bailing in BC on 04.21.15 at 1:45 am

Old Gringo, I just look up the average hourly wage in BC it’s $26.84 for 25-54 year olds. The average of the pay scale you mentioned is $2.75 so wages have increased by just under a factor of 10. An increase in a $24,000 house by the same factor would have us buying houses for $240,000 as opposed to four times that number. If you had to work 100 hours per week just to make ends meet where was all your money going?

#109 Tiger on 04.21.15 at 1:54 am

1 dead, another injured after explosion flattens house in Scarborough

http://globalnews.ca/news/1949914/person-found-unresponsive-after-explosion-in-scarborough-flattens-house/

#110 BS on 04.21.15 at 1:56 am

Ben 79:

The argument that immigrants will do badly paid jobs is not a good one.

Badly paid jobs give you experience which leads to a better paying job. Over 25 years ago my first job was minimum wage in one of the hardest, dirtiest jobs you can imagine. It was also part time, on call and shift work to boot. You couldn’t fill that job today at minimum wage. After doing that job for 6 months and showing the company my hard work ethic, flexibility on taking any shift and reliability I got a better paying full time job in the same company. I continued to work my way up from there until I was in management. Partially due to the experience I got in that ‘badly paid job’ and many other less than ideal jobs I now run my own company and am in the top 1% of income earners.

I know Ben you want to start at the top, and is so unfair you can’t, but that is not how things work. They never have. Those immigrants who take those badly paid jobs will be your boss in the future.

#111 Millmech on 04.21.15 at 2:01 am

Ben,
You don’t get it,if it’s too expensive don’t buy it.Look out for yourself don’t rely on any handout, when housing comes down as it will it will be time to buy.Since your age group is buying at its peak with the least down I’m sure we will hear your tweeting on now how the boomers and govt should subsidize your eagerness to be home owners now that your underwater and how they continue to screw you.Home ownership is not a right

#112 Made in BC on 04.21.15 at 4:01 am

HAPPY 4/20

At least Vancouver has something positive going for it !!

#113 Nagraj on 04.21.15 at 4:55 am

HANSEL AND GRETEL
makes the disturbing point that cannibalism has a place in the human psyche and that the female of the species is, too, capable of eating the buns that have come out of her oven.
Millenials vs Boomers is a boring topic in the sense that it’s nothing more, or less, than yet another reflection of omnipresent and ubiquitous intergenerational conflict. Which happens here just as it does in some village in Outer Mongolia.

THE BUDGET
is a boring topic in the sense that it doesn’t get anybody past the second sentence of HANSEL AND GRETEL which reads, as I recall, “A great inflation beset the country.” (Eine grosse Teuerung kam ins Lande.) You can always argue that whatever the economic dislocation of the day, the SYSTEM is the cause. Perhaps the king of Hanselandgretelland appointed just a pal as finance minister; but in a fine capitalist democracy, like Ontario, the poor woodcutter would’ve been subsidized by Wynne’s Libs. Indeed.

The SPX
is another sort of fairy tale presently being told – overpriced to the Nth degree and underpinned by a Cyclops complacency. Shudder. But then there’s monsters all over the place – like CREA, our well-capitalized banks, etc.

Hansel and Gretel’s trail of bread crumbs got eaten by the birds. Watch out for pterodactyls. (Especially elected ones.)

#114 the Jaguar on 04.21.15 at 6:37 am

#81 Pete:
Stephen Harper is a double agent.
Just like Ken Taylor was working for the USA, so is Steve.
Jumping into American wars, standing back from joining the AIIB. Repeated idiotic comments like those made at the Latin American Summit on Cuba…
It’s all there. Double agent.

#115 jerry on 04.21.15 at 7:15 am

Excellent insights as usual. I will suggest though that there is already substantial pressure on health care-home care- nursing home availability etc. If this can be alleviated by allowing boomers to “age in place”, utilizing their own financial resources for longer—maybe even croaking at home…that would be better. The government can always find more creative ways to increase probate or death taxes or even start charging boomers (means testing) for supportive health services as they age.

#116 GB on 04.21.15 at 7:39 am

It’s classic politics. The middle class and under 50 crowd is too dam busy working just to keep their heads above water to even get out and vote or take notice about what is going on.

Thus…they shoot themselves in the foot.

Politics seems no longer about good policy and more about just getting elected.

The under 50 crowd needs to wake the heck up and get out and vote.

#117 David on 04.21.15 at 7:44 am

You cannot make such a generalization, because there were far too many other factors at work in the economy during those two very different times to ever make fair comparisons between them.

A Yank in BC, I believe you’re making my point here. Correct me if I’m misrepresenting your argument but were you not inferring that tax cuts lead to economic growth and thus greater government revenues? I’m suggesting there is no such causal relationship.

From the Congressional Research Service:
http://graphics8.nytimes.com/news/business/0915taxesandeconomy.pdf

#118 Ben on 04.21.15 at 7:51 am

Some very silly replies. First up I’m earning inside the top 5%. I have a good job, thanks – and work hard.

Second up the people on handouts are the people who have unfunded pensions and benefit from explicit state policies to redistribute wealth from young to old.

You guys are the bums. That’s why I’m asking you to man up. Clearly you can’t and need to keep extracting rent not face to face with the young but via the state after you scuttle out and vote once every 4 or 5 years. What men.

#119 Victor V on 04.21.15 at 8:18 am

Stephen Poloz just quashed any hope of another Bank of Canada rate cut

http://business.financialpost.com/news/economy/stephen-poloz-just-quashed-any-hope-of-another-bank-of-canada-rate-cut

As expected. — Garth

#120 yorel on 04.21.15 at 8:27 am

Whine, whine, whine. Governments do things to get themselves elected. Who knew?

#121 Oot der Hoos on 04.21.15 at 8:32 am

I agree with: #99 will on 04.20.15

I’ll take the double tfsa but I won’t vote for them because I’m conservative and they’re not.

#114 says Double agent. I thought the same long ago.

I won’t vote Liberal or NDP either: That monster Kathleen Wynne of Ontario has made four big moves, foreshadowing what those other socialist atheists will do.

Collecting GIS OAS CPP plus the new Ont. pension and saving nothing, will be as beneficial as saving over a million dollars and buying GICs (not that I would choose either path, but the comparison is shocking).

It is athiest communism for many, capitalism for the rest. I think it is the new world neo-communist formula.

#122 Toronto_CA on 04.21.15 at 8:41 am

It’s interesting (to me anyway) to read that Vancouver and Toronto rank as the least happy cities in Canada:

http://metronews.ca/news/vancouver/1345249/vancouver-ranks-lowest-for-life-satisfaction-across-canada-survey/

Yet they both have the highest housing prices. Have to think to yourself, is it really worth it?

#123 Ben on 04.21.15 at 8:46 am

CAD edging back up: https://ca.finance.yahoo.com/q?s=CADUSD=X

let’s hope the US raise rates and flush out all the high leverage speculators. Interesting times.

#124 Karma on 04.21.15 at 8:56 am

Larry Fink:

“The two greatest stores of wealth internationally today is contemporary art….. and I don’t mean that as a joke, I mean that as a serious asset class,” said Fink. “And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.”

It’s surprising that Vancouver gets mentioned because it’s so small relative to NYC or LDN. But we shall see.

http://www.bloomberg.com/news/articles/2015-04-21/new-york-apartments-art-top-gold-as-stores-of-wealth-says-fink

#125 Smoking Man on 04.21.15 at 9:03 am

http://www.nationalpost.com/m/wp/blog.html?b=news.nationalpost.com//news/canada/public-service-union-asks-court-to-block-new-unduly-invasive-security-checks

Guess what, you want a job in govt, get ready to give up all your privacy.

Apparently you can be rejected based on what website you visit.

1984…..Orwell called it good.

This how I interpret it. Your a curious bugger, have questions, go to offensive websites that counter punch MSM nerative . your not getting the job.

If your a brain dead baffoon who just goes online for recipes , you can be head of CSIS

#126 Jack on 04.21.15 at 9:05 am

Hi Garth, XPF.TO has been falling slowly but steadily, will it stabilize? I am scared.

Why? Your yield has not diminished, and that should have been the reason you invested in preferreds. They will stabilize once the rate issues are settled. — Garth

#127 LL on 04.21.15 at 9:06 am

http://www.ottawacitizen.com/business/Barbara+Yaffe+official+Metro+Vancouver+swept+real+estate+frenzy/10988641/story.html

Observers describe a perfect storm of forces coming together to create a tempestuous result: A 5.8-per-cent jobless rate in B.C., low interest rates, a devalued Canadian dollar attracting more foreign buyers, and panic over prices going even higher if buying is delayed.

#128 Catherine on 04.21.15 at 9:25 am

I am by no means rich, my husband and I have good incomes and by choice have decided to rent and not to participate in this real estate mania. As a result we have disposable income left over and we max our TFSAs and RRSPs every year. I disagree with Garth on this one… The budget’s tax breaks don’t benefit the rich…everyone chooses their own choice. I am not being stupid with my money as I want to retire early so I am taking advantage of the TFSA/RRSP and income splitting when it comes out. You don’t need to earn a lot of money to max your TFSA, you just need to not be an idiot…. Therefore TFSA/RRSP doesn’t benefit the wealthy… it benefits the smart and responsible. While our friends are flying all over the place on vacation and flaunting their $1M house (with $800,000 mortgage) we are saving, taking advantage of the government programs (TFSA/RRSP/Income split) and will retire young.

#129 Irwin on 04.21.15 at 9:27 am

And then there’s this:

“Forget gold, buy a Vancouver condo if you want to hoard your wealth, says world’s top money manager”

Just google it – it’s a Financial Post articlette.

#130 Jack on 04.21.15 at 9:38 am

Garth, thanks for the comment. I appreciate it.

*********
Hi Garth, XPF.TO has been falling slowly but steadily, will it stabilize? I am scared.

Why? Your yield has not diminished, and that should have been the reason you invested in preferreds. They will stabilize once the rate issues are settled. — Garth

#131 saskatoon on 04.21.15 at 9:44 am

interesting:

http://www.blogto.com/city/2015/04/toronto_ranked_2nd_unhappiest_city_in_canada/

guess what #1 unhappiest city is????

that’s right.

correlated to housing bubble?

that’s right.

#132 drydock on 04.21.15 at 9:44 am

#30 vlad the inhaler on 04.20.15 at 7:36 pm
In 20 years a Leaside bungalow will cost 3 million.

In 20 years you may not want to touch Toronto with a 10 foot pole.

#133 fancy_pants on 04.21.15 at 9:47 am

Encourage more $ to sit earning 1% or bloat the stock markets more. They should be removing TFSA limits and raising the overnight rate. Refuse the medicine long enough and it will be too late for a cure.

The reason it is so hard to predict is we have gov’ts that are hellbent on manipulating normal market fundamentals from occurring.

Debt on folks! The gov’t has your back.

#134 Mike T. on 04.21.15 at 9:54 am

‘how can we have everyone getting paid by their investments and not working… this is obviously not sustainable if everyone does the same thing.’

nothing to worry about

less than 20% invest, less than that have proper investments

on the other hand 70% own housing!!
lots of people own lots of houses!!

#135 Berniebee on 04.21.15 at 10:06 am

#118 Ben “I’m earning inside the top 5%. I have a good job, thanks…”

And still, you’re whining.

Boomers outnumber everyone else, and out vote anyone else, and that’s why Harper is handing out goodies to geezers.

Some advice:
– Don’t buy stocks or houses when most other people are.
– Ignore the torqued media message that proclaims that you are not an adult until you have a mortgage.
-Stop thinking that cottages, boats, motorbikes, jet skis, a Lexus, iphones, ipads, $2500 bicycles, $250 jogging shoes, $150 sunglasses, a 60 inch 3D TV and designer anythings are must haves in a modern life.

#136 Ralph Cramdown on 04.21.15 at 10:06 am

#128 Catherine — “You don’t need to earn a lot of money to max your TFSA, you just need to not be an idiot…. Therefore TFSA/RRSP doesn’t benefit the wealthy… it benefits the smart and responsible.”

What is the benefit of the TFSA? The benefit is that capital gains, interest and dividends earned on the contributed money won’t be taxed. So the benefit is GREATER for people whose cg/div/int would have been taxed at a HIGHER rate than for those whose growth would have been taxed at a LOWER rate. Which depends on your taxable income… which is broadly correlated to how rich you are.

If you’re a resident of Ontario, here’s the numbers:
http://www.taxtips.ca/taxrates/on.htm
The details for other provinces are available on the same site.

The part of my extended family’s wealth that I manage (four TFSAs, all with a four handle (optimized late, sigh)) avoids a fair bit of tax. But I know that there are families who avoid MORE tax in a similar situation, simply because none of the four I manage are in the top bracket ($220k+).

People with very little taxable income save very little tax on their TFSAs, even if they max their contributions and do reasonably well on their investments. And scions of the rich, whose accountants chuck in the max starting at 18 without even asking, will avoid a lot of tax indeed over 60-70 years.

#137 Realtor007 on 04.21.15 at 10:14 am

I don’t care what age you are you should see the TFSA as a blessing, maxing it out should be the goal of everyone, just like the RRSP is nowhere near maxed out by many the TFSA won’t be either, is that a reason not to increase it? I think not. FYI, I’m nowhere near a boomers age.

#138 Smartalox on 04.21.15 at 10:20 am

Increasing the TFSA limit to $11k per year is good for Gen X’ers and Millenials who #donthave1million to buy real estate as a path to building wealth.

The tax free investment account, behaves similarly to real estate in that it leverages the concept of tax-exempt capital gains. Also, like real estate, the value of one’s TFSA does not enter into the means test to determine elegibility for CPP and OAS.

Of course, few will see it that way, and even fewer will manage to get it right, but as Garth indicated above, a well-managed TFSA can be as profitable as real estate in the long term, with a lot less risk.

I hope that the other political parties are savvy enough to adopt this measure as well, so that I don’t have to vote Republicon in order to secure my family’s future.

#139 Ken Nash on 04.21.15 at 10:29 am

Want to see real, rip your throat out (with decorum) generational inequality? Check out Superior Estates Court Garth. Mornings are best 10 – 12.

Used to be Estate court was two court rooms in Superior court beside Toronto City Hall. Last summer it moved to the Canada Life building. Taking all of it’s 12 floors where the estate trolls practice their craft. Cain never had it so good. Able not so much.

So little has changed, since Zola wrote in his 1870s, French recession Germinal. Zola’s distaste of the family estate litigator fanning demented family discourse for their own narcissistic gain.

The 60/70 tail end of the boomers, sandwiched kids and parents generation, fearing it won’t get better. Gripped by self preservation over sibling respect.

All the rules susceptible to political governance are skewed to placate Boomers. There’s more to fiscal policy than votes. Like society.

Remember those ads the McGuinty Government ran on elder abuse? The daughter ripping her mother’s bank card out her purse was one. It might have comforted Boomers but what was the result?

The government changed Estates to reverse onus. Before, an Applicant had to show “necessities of life where ignored” by a Power of Attorney. Now it’s a simple, “Show me where the money went.” It’s brutal. Trolls like it, 5% court tariff for passing accounts on a $400k estate is $40,000 plus time. Money in and out kids = $800k.

Lawyers are flocking to estates and milking it for all it’s worth. It’s where the money is, dead boomer estates. I’d like to see things change. For me higher corporate taxes is a start. Yup.

With generous expensing for purchasing of new equipment, technology and RD. Encourage business owners instead of in October planning some trip to take in January. Investing into their business because their accountant told them they’ll owe taxes if they don’t.

Doubling down on tax breaks for a generation which doesn’t need or deserve it. Can’t stop soon enough.

I apologize for taking up so much room Garth. Your blog has been extra thought provoking as of late. That’s a good thing.

#140 Julia on 04.21.15 at 10:30 am

Recently bought XPF and CPD, thanks to posters here I looked into those.

Opinions on VTI? Holding in my RRSP for a while, up 120%. Is this a long term hold?
I need someone to look at my not so big portfolio for advice.

#141 Shawn Allen on 04.21.15 at 10:41 am

RRSPs are misunderstood

This year you can contribute $24,930 to an RRSP, if you have the money and earn at least $135,000. That will reduce your tax bill by more than ten grand.

**************************************
This is true in form but the substance of the RRSP is a different.

Put 10k into an RRSP and save 4K tax it appears your net worth is up by 4k.

In reality you got the 4k but the taxman effectively owns 4k of the RRSP and you own 6k

If marginal tax rate is and stayed at 40%, you own only 60% of the rrps, tax man owns 40%.

The good news though is that you 60% share grows tax free .

What is income tax in form upon withdrawal is in substance the government taking back its 40% share of the RRSP.

Thinking of the refund as free money is wrong but if it entices people to contribute that is good. RRSP contributions are a good thing people contribute for the wrong reason and misunderstand the tax and refund but as long as people contribute that is good.

There are exceptions and in some cases the TFSA is better.

Best feature of the RRSP is that it is considered untouchable until retirement so it mostly stays untouched.

#142 blue foot on 04.21.15 at 10:43 am

I will take the goodies but still not vote for the current government.

#143 dogman01 on 04.21.15 at 10:57 am

Washed Up Lawyer on 04.20.15 at 8:29 pm

#36 Linda

“Gee, those ‘stupid’ oldies sure seem to have things working for them – wonder how they managed it……”
***************************************

I think that part of the answer might be that in 1975 the summer job I had as a garbage man in Calgary paid me $5.50 per hour. According to the BoC inflation calculator that is $24.81 in 2015.

A semester at university was, I’m guessing, $400.00.

My pals who obtained a B.A. in History landed permanent, remunerative and full time employment as land agents for major oil companies.

A common practice was to use student loan proceeds for a trip to Greece upon graduation prior to starting work.

Times, employment prospects etc. were very different then.

My young adult children, not so much.

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

I went to university 10 years later, late 80’s. The times were changing but the 1970’s still lingered.
Student Loan and a magical concept called remission where you did not have to pay a portion of it back and your could go to Greece.

Becoming a bit harder to get a PT job; Safeway was paying close to $20.00 hr, any city work requird you know someone.

A BA would get a foot in the door and you could still go from that.

As a X GEN I am glad to have grabbed onto the Boomer cost tails, sniff out the declining number traditional work places that paid well and had benefits.

The race to the bottom was moving lower but not at the pace of today.

Will not recognize Canada in 30 years I expect.

A wise poster recently commented:

“What good is you country if your young can’t start a family?

#144 saskatoon on 04.21.15 at 10:59 am

#81 pete

dude:

both sides of the coin are the same.

you’ve been duped.

#145 Rational Optimist on 04.21.15 at 11:01 am

80 Bottoms_Up on 04.20.15 at 10:11 pm

“…that is, needing 2 incomes to lead a middle class lifestyle; and still not being able to afford hard assets such as a cottage, boat, motorbike, jet skis, etc. etc.”

I think you have a point about requiring the wages of two workers in a family now, but this is the very first time that I have heard anyone refer to a jet ski as a “hard asset.”

#146 maxx on 04.21.15 at 11:02 am

#12 Financial Freedom at 40 on 04.20.15 at 6:41 pm

Bravo. Exceptional. Inspiring.

There have never been so many ways to get rich if you’re young and have a decent job. The tools are all out there: excellent resources such as Garth, TFSA, RRSP, job-related savings programs- and to boost all of this, a million ways to Sunday to save tons of cash on what you need to buy. Thereby allowing for more saving or just having a blast.

Very few will get there by overspending on re, designer, digi-crap and lattes.

Many who truly want to become rich can do so. It’s mostly a self-generated and silent process- whining won’t work.

#147 cramar on 04.21.15 at 11:04 am

@#128 Catherine on 04.21.15 at 9:25 am

———–

Well said Catherine. Bravo for you!

Qapla’

#148 rawdiswar on 04.21.15 at 11:05 am

Maybe if Millennials woke up and tried to learn a thing or two about financials they would realize what a gift the TFSA is. I’m 30, wife is 28 and we have maxed TFSA’s full of growth equities. She’s only been working full time for about 2 years and I’ve been underemployed for almost 2 years. So what? Pay yourself first and get a clue.

Lots of people on here are worried about the macro, which they can’t do anything about, and forget about the micro, which they can.

#149 DisgustMadeMePost on 04.21.15 at 11:06 am

It’s nice to know the Asian money coming into Vancouver has been scrubbed clean, with the help of close relatives of course. That’s at least if you don’t get caught. How many houses can you buy in Van for $480 million ??

http://www.courts.gov.bc.ca/jdb-txt/SC/15/05/2015BCSC0590.htm
________

Notice that the dates in question are between 1992 – 2001.

Is the decision just recent?

#150 Leo Trollstoy on 04.21.15 at 11:06 am

I will take the goodies and vote for the current government.

#151 Oceanside on 04.21.15 at 11:09 am

66 everythingisterrible on 04.20.15 at 9:30 pm
#36 Linda
“Gee, those ‘stupid’ oldies sure seem to have things working for them – wonder how they managed it……”

Destroying the environment and plunging the country into debt come to mind.

Not my 60 something friends, environmentalists, savers and hard workers…Not every baby boomer has boats, motorhomes….Just like a simple life and the odd gin and tonic..

#152 Leo Trollstoy on 04.21.15 at 11:11 am

Come on, I know math has been taught in schools for a century. That means that at minimum wage it used to take 12,000 hours to buy a house and today at $2M and $10/hr it takes 200,000 hours. That’s a 16x increase. Just thinking.

Boomers didn’t need math to land a job back then.

They just needed a pulse.

#153 Ben on 04.21.15 at 11:15 am

Love the way objecting to being farmed using debt is “whining”. Here’s what the olds want: they want you to lie nice and still whilst they rob you. If you try to object they will then trot out all the garbage you see on this page such as “at least you have your youth, it was harder in my day, you are complaining”.

You guys have no idea what I want. I’m not commercial in the slightest. I don’t want fancy cars or whatever. And if I did it’s none of your business.

I want to keep a decent share of my labour instead of handing it over to rentiers and the state/olds.

Be a man – you are robbing us and I’m calling you out. That’s not “whining”. Think you can box us in by using pejorative terms? Wrong.

#154 bdy sktrn on 04.21.15 at 11:48 am

And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.
—————————————

van rollin in the big leagues after endless calls for it to slide into the straight.

we are special here!

#155 SWL1976 on 04.21.15 at 11:59 am

#125 Smoking Man

Guess what, you want a job in govt, get ready to give up all your privacy.

Apparently you can be rejected based on what website you visit.

1984…..Orwell called it good.

This how I interpret it. Your a curious bugger, have questions, go to offensive websites that counter punch MSM nerative . your not getting the job.

If your a brain dead baffoon who just goes online for recipes , you can be head of CSIS

So should I prepare my resume?

Funny, well not literally funny, but figuratively funny how a book such as 1984 went from being sci-fi when it was released in 1949 to now being non-fiction, a mere 60-70 years after it was first published

#156 bdy sktrn on 04.21.15 at 12:02 pm

#127 LL on 04.21.15 at 9:06 am
A 5.8-per-cent jobless rate in B.C., low interest rates, a devalued Canadian dollar attracting more foreign buyers, and panic over prices going even higher if buying is delayed.
————————-
in other words, the usual state of the 604 market.

#157 Kris on 04.21.15 at 12:03 pm

More Boomer wealth = More passed to the next generation? Perhaps their kids can afford these record house prices, after all, with the fat inheritances coming their way, sooner or later.

#158 coastal on 04.21.15 at 12:06 pm

“Notice that the dates in question are between 1992 – 2001.

Is the decision just recent?”
———————————————

Yes, note the date in upper right hand corner, April 16. Imagine this same scenario times hundreds that have slipped through the system the last 20 years when this one started. The final tally for the one HAM was $670 million scammed.

#159 Paul on 04.21.15 at 12:37 pm

Re #156
More wealth = more inheritance lol

A relative of mine considered wealth is paying $4000.00
A month in a retirement home been there six years and grateful going strong. Do not base your future on someone else’s money! Work save enjoy life.

#160 Fed-up on 04.21.15 at 12:41 pm

#108 Bailing in BC on 04.21.15 at 1:45 am

Old Gringo, I just look up the average hourly wage in BC it’s $26.84 for 25-54 year olds. The average of the pay scale you mentioned is $2.75 so wages have increased by just under a factor of 10. An increase in a $24,000 house by the same factor would have us buying houses for $240,000 as opposed to four times that number. If you had to work 100 hours per week just to make ends meet where was all your money going?
————————————————————————

Good points and don’t forget that most full time workers were averaging far more than $2.75 per hour in 1975. More like $7-$9 per hour. And you wish you can buy that 1975 24k home in North Vancouver for $960,000 today. More like double that amount.

And millennials are such whiners aren’t they?

#161 Ben on 04.21.15 at 12:47 pm

“More Boomer wealth = More passed to the next generation? ”

I just have no idea how anyone could possibly think like this. Is it not clear to you that this “wealth” is a chimera and the housing market will revert to the mean once demographics shift? You can’t monetise fraud. That’s why land price inflation is so popular as a vehicle – it’s just zeros and ones on a screen. No need to build anything, to create anything of value, nothing. You just borrow money into existence en-masse then the price goes up.

The opportunity cost is real. We could have been setting ourselves up for a better, more efficient life. Instead we’ve been borrowing and ramping up private debt to fuel consumption. And every time we print more credit the value of real wages drop.

Otherwise why doesn’t everyone jack up land prices to the moon then we can all bequeath our paper riches to our offspring. How can you not comprehend the system as a whole? Go to the supermarket – somebody has to move this stuff to the shop. Someone has to grow it.

Real estate is just a way of extracting rent. It’s a zero sum game. We can’t all get rich off a zero sum game.

That’s why the banks play it. If it was hard work they’d do something else.

#162 Obvious Truth on 04.21.15 at 1:04 pm

#128 Catherine

Way to go.

It feels like more people are getting this.

#163 MF on 04.21.15 at 1:14 pm

Another good post Garth.

I forwarded it to my “evil” boomer parents who shower me with love and have been there for me my whole sheltered life.

They actually think real estate is totally over valued, had the house paid off in 1992, and are invested in the markets. Definitely not typical from what I read here.

#143 dogman01

Very apt repeat comment in your post.

“What good is you country if your young can’t start a family?

I think this speaks to the heart of the angst we millennials are feeling. Around 30, we are tired of putting off everything to:

1) finish school…which we now realize was a waste of time for a lot of us anyways.

2) find a livable wage. It is all find and dandy to work for minimum wage at the bottom when you are 21, but not when you are 30 and you have student debt. It’s even worse if you have to work for free at one of these joke unpaid internships.

3) lay down roots…which to most people means starting a family and, yes, buying a house. Biology doesn’t wait forever. Understandably, women are especially cognizant about this… but we men too don’t go on forever like some of us like to believe either.

I think this is often manifested as resentment towards our boomer parents, who have groomed us to live our lives the same way they did (finish school, get job, get married, buy house, have kids, get old, retire). A lot havn’t realized much has changed since they were 30. My dad is 70, mom 67. That is 40 years ago!

A lot of boomers also pride themselves in their children’s accomplishments. It sure sounds better saying “jimmy bought a house”, as opposed to “jimmy is renting but he is balanced, liquid and diversified earning an average of 7%”.

#110 BS

You are right. And I think most of us whole heartedly agree and would love the opportunity to work hard with potential to move up. Problem is right now, it is not so easy to land that entry level position that you used to be able to move up from. And it is almost always very part time, temporary or contract. Entry level positions are often filled by unpaid interns as well. From what I see, they are limited in number and usually require experience that is not commensurate with a typical entry level applicant’s experience. As is often mentioned, it comes down to what your degree/diploma is in. That makes logical sense, but we must acknowledge that every year the number of underemployed yet educated young folks grows and the frustration builds further.

There are some that are delusional and still believe the university brochure they were given in grade 12 that said after you finish x program you will land a job in your own office making 80 k a year. Reality sets in eventually though.

MF

#164 MF on 04.21.15 at 1:18 pm

Question for the blog dogs.

I just finished reading “Millionaire Teacher” and “Index investing for dummies”. Both were great reads and I learned a ton (along with this pathetic blog).

Anyone recommend any other books to continue to educate myself with?

MF

#165 BCD on 04.21.15 at 1:28 pm

#136 Ralph Cramdown on 04.21.15 at 10:06 am
#128 Catherine — “You don’t need to earn a lot of money to max your TFSA, you just need to not be an idiot…. Therefore TFSA/RRSP doesn’t benefit the wealthy… it benefits the smart and responsible.”

What is the benefit of the TFSA? The benefit is that capital gains, interest and dividends earned on the contributed money won’t be taxed. So the benefit is GREATER for people whose cg/div/int would have been taxed at a HIGHER rate than for those whose growth would have been taxed at a LOWER rate. Which depends on your taxable income… which is broadly correlated to how rich you are.

If you’re a resident of Ontario, here’s the numbers:
http://www.taxtips.ca/taxrates/on.htm
The details for other provinces are available on the same site.

The part of my extended family’s wealth that I manage (four TFSAs, all with a four handle (optimized late, sigh)) avoids a fair bit of tax. But I know that there are families who avoid MORE tax in a similar situation, simply because none of the four I manage are in the top bracket ($220k+).

People with very little taxable income save very little tax on their TFSAs, even if they max their contributions and do reasonably well on their investments. And scions of the rich, whose accountants chuck in the max starting at 18 without even asking, will avoid a lot of tax indeed over 60-70 years.
_____________________________________________

I dunno Ralph. You are one of the rich people on this blog that is waxing philosophical about the poor and downtrodden. Does it make you feel better when you go slumming with the plebs?

If you are indeed in the 1%, your self-loathing is a bit odd. How about take some of us no-brained low life’s and show us how to make money.

Any rich folk on this board interested in crowd-funding a pleb like me? Why not purchase my skills as a poet for a six figure salary? lol

#166 frank on 04.21.15 at 1:34 pm

#164 “The Creature from Jekyll Island”
Or anything by Eustice Mullins
Enjoy

#167 gut check on 04.21.15 at 1:34 pm

#100 Bobby on 04.21.15 at 12:06 am
Who you gonna vote for? You could always choose Mulcair, but let’s be honest the NDP will never govern Canada. Of course, there’s Mr Trudeau but he can’t make up his mind whether he is for or against something. He wonders why his butt is sore sitting on both sides of the fence.
The winner is obvious, but many like yourself don’t get it.
************************

so you’re voting for who you think will win. Do people realize that voting in an election is NOT the same thing as sports betting?

I’m seriously asking. Every election I hear this same sentiment: “Well I wanted to vote NDP but there’s no way they can win so I held my nose and voted ”

That’s not how it’s supposed to work.

#168 Ben on 04.21.15 at 1:38 pm

MF – Progress and Poverty by Henry George. Don’t let the title fool you. Will change how you look at the economy.

#169 Mike in Toronto on 04.21.15 at 1:41 pm

#163 MF

A lot of Gen-X is locked out of the housing market. Not sure what Millennials were doing in school until 30. I graduated at 21 with $25k of debt.

I don’t have a million either. The job market was a lot rougher back in the mid-late 90’s. Unemployment was 9%, renting was done in a rental crisis, people lived in basements on the edge of town because that’s all that they qualified for.

For a short while it was easier to own than rent…. but it was really-f-ing hard to rent.

Saving up for a house has been a fool’s errand. Early gen-Xers did ok, some did awesome, just catching the wave as it began, but late Gen-X either got lucky overextending themselves in the market, or they’re screwed, saving every year to only see prices rise far, far faster than their savings.

…and Gen X remembers the crash. People were buying because they had “no choice” and “wanted to start a family” then too. Only to find themselves underwater for a decade.

There was no condo boom when I was looking for work, else I would have become an electrician. Good money, high demand. If you can’t find work in this economy, consider a career change.

#170 Leo Trollstoy on 04.21.15 at 1:54 pm

Anyone recommend any other books to continue to educate myself with?

Anything by John Bogle.

#171 Nathan Green on 04.21.15 at 1:59 pm

This whole baby boomers vs millennials is a false dichotomy. I’m afraid it’s only serving as a way to divide people based on age rather than class, which is a real war. There are many baby boomers struggling to make ends meet, especially those who were in manufacturing and saw their jobs shipped overseas. There are also many millennials who are “trust-fund kids” and are in financially good shape thanks to mommy and daddy. The better dichotomy is one between the working class and the owning class. The working class is unable to take advantage of most of these benefits provided by the government to the entitled rich. Benefits that require a family to actually have disposable income to save and invest. What we’re starting to see emerge now more than ever is a rentier economy and in such an economy the working class is screwed. As rent and housing prices soar, wages stagnant, and full-time jobs become a thing of the past, the working class have less disposable income to invest and become more of a servant class having to sell their labour for the rest of their lives just to get by.

I wish people here would stop falling for the old “boomers vs millenials” narrative and see the real war being waged, which is by the owning class against the working class. And for those of you who belong to the owning class, but are small players, don’t sit too comfortably. An economic depression is inevitable and just like 2008, it will be the redistribution of wealth taken from middle class given to the rich. The last time we saw these levels of inequality was just before the great depression . Hang on to your seats folks, it’s going to be a bumpy ride.

#172 Ralph Cramdown on 04.21.15 at 2:00 pm

#165 BCD — “Why not purchase my skills as a poet for a six figure salary?”

Well, show us some of your work! I’ve posted poetry here before, as well as rewrites of a few showtunes and some Broadway book. You might see me as just a self-loathing class warrior, but I’m a triple threat.

#173 jess on 04.21.15 at 2:06 pm

off-the-shelf-

April 21, 2015
CFTC Charges U.K. Resident Navinder Singh Sarao and His Company Nav Sarao Futures Limited PLC with Price Manipulation and Spoofing
The CFTC Complaint Alleges that Defendants’ Manipulative Conduct Contributed to the Market Conditions that Led to the May 6, 2010 Flash Crash

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the unsealing of a civil enforcement action in the U.S. District Court for the Northern District of Illinois against Nav Sarao Futures Limited PLC (Sarao Futures) and Navinder Singh Sarao (Sarao) (collectively, Defendants). The CFTC Complaint charges the Defendants with unlawfully manipulating, attempting to manipulate, and spoofing — all with regard to the E-mini S&P 500 near month futures contract (E-mini S&P). The Complaint had been filed under seal on April 17, 2015 and kept sealed until today’s arrest of Sarao by British authorities acting at the request of the U.S. Department of Justice (DOJ). After the arrest, the DOJ unsealed its own criminal Complaint charging Sarao with substantively the same misconduct.

#174 Sideshow Rob on 04.21.15 at 2:10 pm

#108 Bailing in BC on 04.21.15 at 1:45 am

“Old Gringo, I just look up the average hourly wage in BC it’s $26.84 for 25-54 year olds. The average of the pay scale you mentioned is $2.75 so wages have increased by just under a factor of 10. An increase in a $24,000 house by the same factor would have us buying houses for $240,000 as opposed to four times that number. If you had to work 100 hours per week just to make ends meet where was all your money going?”

Ah generation envy. Everyone else had it easier. It would seem like some of us are too young to know what they don’t know.
The 1970’s and 80’s were very inflationary and paychecks lagged living costs in a large way. That’s why unions were so popular and militant then. You wonder where money went? Food cost a lot more relatively then. Same with music, travel, cable tv andstuff in general. The biggy was interest rates. As Garth has mentioned many times house prices and interest rates are negatively correlated. Mortgage rates ranged from 10% to 20%. That is not a typo. Back then interest costs were high and house prices weren’t. Now it’s the opposite. Either way you pay. It’s always been a challenge. Different era, same large hole in your wallet if you bought a house.
Also houses were a lot smaller then. 1200 foot bungs were considered huge.
Envy is never a productive thing.

#175 jess on 04.21.15 at 2:24 pm

…” is the purpose of HFT to provide liquidity or to provide a generous revenue stream to its practitioners while providing the appearance of liquidity? Or maybe some of both?

when the taker IS the maker
http://allaboutalpha.com/blog/2014/09/18/metamorphosis-in-hft-update-with-brad-katsuyama-of-iex-central-figure-in-flash-boys/

#176 VanRant on 04.21.15 at 2:35 pm

DELETED

#177 yeg_guy on 04.21.15 at 2:36 pm

@MF

This is what I used to get into index investing/couch potato. http://tinyurl.com/qf3u5gf (amazon ebook).

Not to mention ALL of the learning gained from Garth and his wisdom on this pathetic blog.

#178 Daisy Mae on 04.21.15 at 2:43 pm

#13 Willy: “LMAO – nearly had an accident reading this!”

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

Laugh if you will — you’re next! LOL

#179 Ralph Cramdown on 04.21.15 at 2:52 pm

#165 BCD — “How about take some of us no-brained low life’s and show us how to make money.”

I don’t know what more I can possibly do. I’ve been giving advice here for YEARS. Every time some clown here claimed that the US economy was getting worse, I refuted him with statistics and charts. I’ve showed people where to get macroeconomic information, I’ve pointed out quality stocks whose common were paying higher dividends than their bonds were, and mentioned a trading opportunity in Silver Wheaton last month when Scotiabank was caught with a huge underwater bought deal on their books (and the PMs were briefly oversold at the same time). I’ve debunked umpteen bullshit Zerohedge tales of doom, and exposed the blotted escutcheons of umpteen more doomers who were cited here.

This isn’t a stock trading blog, so even if I was the type to advertise and cheerlead my own trades, I wouldn’t do it here out of respect for our host.

But most of all, I’ve been a loud, consistent US bull. The US equity market of the last few years was probably the biggest, easiest moneymaking opportunity in our lifetimes. The US Fed was far more explicit than usual about its desire and capacity to pump up asset prices. All you had to do was buy the index and hold it, while ignoring all the idiots, hands stuck way down in their pockets, who claimed that Fed easing was the only reason markets were going up. Yeah? So?

Learn the wisdom of the Partridge!
http://www.tischendorf.com/2009/07/02/jesse-livermore-advice-how-to-trade-in-a-bull-market/

#180 HD on 04.21.15 at 3:01 pm

@ #164 MF on 04.21.15 at 1:18 pm

Question for the blog dogs.

I just finished reading “Millionaire Teacher” and “Index investing for dummies”. Both were great reads and I learned a ton (along with this pathetic blog).

Anyone recommend any other books to continue to educate myself with?

MF

The Millionaire Next Door

Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics

The intelligent investor

———————

Wow, MF. I have to say, I’m impressed. Refreshing to see someone who’s willing to learn and is actually putting the effort to do so.

You will do well, young grasshopper, you will do well. The force is strong in you….I can sense it.

The more you read, the faster it’ll make all sense to you. You will eventually accumulate the wisdom to be to able see right away what is best for your specific situation.

I’m 31 years old. I took advantage of great opportunities and there is fair amount of luck involved in my ‘success’. Life is good, can’t complain.

The balance portfolio currently sits at 205k (270k if I include the value of my DB pension plan).

It can be done.

Just a whisper. I hear it in my Ghost.

Best,

HD

#181 Doug in London on 04.21.15 at 3:12 pm

Garth is right, this Baby Boomer Budget is lousy social policy. It’s not costing the government anything right now to increase TFSA contributions, but years from now it will mean less tax revenues. So unless something new comes along which greatly increases government tax revenues many years down the road, it will mean cuts to social programs sometime, somewhere. That will likely affect we Boomers (elderly people can be costly to society), so if you are one of these Boomers like I am, put as much into that TFSA as you possibly can. You’ll likely need the money some day for user fees or other out of pocket expenses that the government will no longer pay for. It’s like the government is giving you money now with the right hand, but will take it away with the left hand some day. The world of business and finance works just like the laws of thermodynamics, you don’t get something for nothing.

#182 Bottoms_Up on 04.21.15 at 3:30 pm

#169 Mike in Toronto on 04.21.15 at 1:41 pm
——————————————————-
I remember a short 6 years ago, running into an old high school friend I hadn’t seen for a decade. He hadn’t made much of his life, but did flip two houses (through the initial co-signing of his dad) and made a few hundred thousand. Vs. my $0, acquired through the need to rent while acquiring higher education.

It was very demoralizing to see prices rocketing higher $2000 per month, simply by just people living in a house. Thank god it appears those days are behind us (perhaps not Toronto and Vancouver). Savers will once again stand a chance and not lose any more ground.

#183 Bottoms_Up on 04.21.15 at 3:35 pm

#152 Leo Trollstoy on 04.21.15 at 11:11 am
——————————————————
Not necessarily true, trailing edge boomers had a difficult time due to their peers a few years older than them. Likely similar experience for early Gen Xers. But they have both done well owning real estate.

#184 Made in BC on 04.21.15 at 3:58 pm

#160 Fed-up on 04.21.15 at 12:41 pm
#108 Bailing in BC on 04.21.15 at 1:45 am

Old Gringo, I just look up the average hourly wage in BC it’s $26.84 for 25-54 year olds. The average of the pay scale you mentioned is $2.75 so wages have increased by just under a factor of 10. An increase in a $24,000 house by the same factor would have us buying houses for $240,000 as opposed to four times that number. If you had to work 100 hours per week just to make ends meet where was all your money going?
————————————————————————

Good points and don’t forget that most full time workers were averaging far more than $2.75 per hour in 1975. More like $7-$9 per hour. And you wish you can buy that 1975 24k home in North Vancouver for $960,000 today. More like double that amount.

And millennials are such whiners aren’t they?

+++++++++++++++++++++++++++++++++

Plus taxes are double. People making olden dayz comparisons always forget that….

So with cost of living you need to be making $50 an hour today compared to 1975…..

#185 Mark on 04.21.15 at 4:03 pm

“But they have both done well owning real estate.”

So if the Boomers and Gen X have done well in RE, what asset class will Gen Y and the Millennials do well in?

Bonds seem to be highly correlated to RE. Might there be outsized rewards for Millennials who load up on the stuff that the boomers/genX hated, such as industrials and gold?

#186 young & foolish on 04.21.15 at 4:03 pm

“less than 20% invest, less than that have proper investments
on the other hand 70% own housing!!
lots of people own lots of houses!!”

this makes sense … since people have to live somewhere …

#187 everythingisterrible on 04.21.15 at 4:08 pm

#176 VanRant
Interesting article,
But everyone knows Harvard is full of a bunch of uneducated xenophobes. How dare they present such logical diatribe.

#188 Bottoms_Up on 04.21.15 at 4:09 pm

#117 David on 04.21.15 at 7:44 am
—————————————————
don’t forget this

http://www.cbc.ca/news/world/sam-brownback-s-kansas-experiment-putting-the-voodoo-back-in-economics-1.2994824

“Three years later, here we are: Wealthy Kansans are delighted. Poor Kansans are poorer. The state has now gone through its reserves funds and is facing a gaping hole in its current balance sheet as well as a $648-million shortfall for the next fiscal year, according to the Kansas legislature research department.”

The revenue gusher hasn’t erupted. The promised jobs have not appeared.

#189 Johnson on 04.21.15 at 4:12 pm

Post #176,

Garth, please delete that Harvard racism.

#190 Bottoms_Up on 04.21.15 at 4:19 pm

#116 GB on 04.21.15 at 7:39 am
———————————————
17,000,000 people over the age 40.

10,000,000 people between 20-39.

It’s as simple as that.

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/demo10a-eng.htm

#191 Vanecdotal on 04.21.15 at 4:44 pm

#163 MF
+1
Very well said. Totally agree.

+1
#169 Mike in Toronto

Also agree, nicely put, sounds like we’re of similar vintage. I’ve had a similar career / housing arc, you paint a pretty accurate picture. Many friends and colleagues in this age group also. It’s not just Gen Y’s facing these challenges.

Essentially we’re now 2 generations (behind the Boomers) that entered the job market often heavily indebted, facing comparatively high housing costs and limited job prospects in many cases.

What will Gen Z’s prospects look like given the current trajectory? It is concerning. We’re already grooming our Gen Z kid to be a mobile global citizen, despite being born and raised here, he already understands he’ll need to go where the oppourtunity is which may not be in Van, BC, or even Canada.

#192 rawdiswar on 04.21.15 at 4:48 pm

#164 MF

It’s a bit long, but A Random Walk Down Wall Street by Burton Malkiel is excellent.

#193 Ben on 04.21.15 at 4:56 pm

Love the way everyone is offering MF books on investing like the one with pictures of someone sat whilst their cash accumulates as the market “works for them”. Or the guy with defined *benefit* pension plan which is not viable else it would be defined contribution.

Really great guys. Hey guess what – you are part of the problem. You all want more for less. Someone has to do the work. You may as well be Americans, sneering at the “dumb” people who don’t know how to “make their money work for them”. You just want a piece of the fiat money pie. If you are making big on the market it’s because QE is inflating asset prices and destroying other parts of the economy. Again you are in a zero sum game.

Let’s teach everyone to do this and see how we get along, when we are all making “easy” money. Oh wait – by definition we can’t all do that. Hey but I’m all-right Jack. Until the economy implodes anyhow…

If you can’t raise yourself above this greed driven “analysis” there is no hope for you.

Every time someone dispenses advice for a quick win be it stocks, shorting, TSFA etc where you are trying to grab more than you make an hour doing real work you are adding to the problem.

#194 pwn3d on 04.21.15 at 4:59 pm

#190 Bottoms_Up on 04.21.15 at 4:19 pm

17,000,000 people over the age 40.

10,000,000 people between 20-39.

It’s as simple as that.

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/demo10a-eng.htm
——————————–

boomers are long past 40! more like 55+

#195 Harper is FINISHED on 04.21.15 at 5:00 pm

What a nothing budget full of hot air and promises that won’t kick in years from now. All of which can be changed later. Harper is a liar and full of secret deals like the deal signed with China. He is a man that can not be trusted. A vote for HARPER is a vote for a Canada that will never be the same. Harper makes brian mulroney look like a nice guy.

#196 Ralph Cramdown on 04.21.15 at 5:04 pm

“Mr. Speaker, I’m proud to announce, this bala — this budget is balanced.”

Couldn’t quite get it out. Nerves? Poor public speaking skills? Doesn’t believe it?

#171 Nathan Green — “I wish people here would stop falling for the old “boomers vs millenials” narrative and see the real war being waged, which is by the owning class against the working class.”

This is very true. It makes me laugh when I see commenters here taking aim at public sector pensions — the war isn’t between employees with good pensions and employees with poor (or no) pensions. Whether or not it is appropriate to pay six figures plus benefits to public sector administrators etcetera, those highly taxed wage earners are hors de combat in the invisible war between those taxed on labour income and those taxed on the growth of their capital.

I think a lot of Canadians just don’t realize what rich is. It isn’t your bank manager, or your school board administrator. It’s the most successful of the “small” businessmen in your community, a few senior executives of large and midsize companies, and the owners thereof. A class very much out of the limelight, and out of the mind of the average Canadian.

#197 Boomer and Proud of It on 04.21.15 at 5:11 pm

YESSSSSS!!!!!!!

This budget ROCKS!!!!

Boomers win – and we DESERVE it!!!

If you are under 55, go whine in a corner somewhere. You are pathetic losers.

#198 Smoking Man on 04.21.15 at 5:17 pm

Love this budget.

I’m voting NeoCon again…

#199 Realtor007 on 04.21.15 at 5:18 pm

Oh yeahhhhh babyyyy!!

Harper delivers once again, $10k TFSA with a $4500 top up allowed for this year, meanwhile in Ontario, Wynne spends like a drunken sailor, hydro up, debt up, beer bottle shuffling to ease the pain.

#200 cramar on 04.21.15 at 5:19 pm

#164 MF on 04.21.15 at 1:18 pm
Question for the blog dogs.

I just finished reading “Millionaire Teacher” and “Index investing for dummies”. Both were great reads and I learned a ton (along with this pathetic blog).

Anyone recommend any other books to continue to educate myself with?

MF

——————

To add to #180 HD’s recommendation of “The Millionaire Next Door,” also read Dr. Stanley’s later book, “Stop Acting Rich”. Parallels this blog perfectly.

Also highly recommended is Jeff Olson’s “The Slight Edge”. It will change your life! I love the story in it where Olson is telling his mother that “The Millionaire Next Door” changed his life and he is now worth over a million. His mother had to work plus raise him and two other siblings after his father died young. They lived frugally, and his mother never complained. Then she floored him by saying that she had diligently saved two million! Luv it!!!

#201 Garth please comment on this on 04.21.15 at 5:22 pm

http://business.financialpost.com/personal-finance/mortgages-real-estate/heres-whats-really-scary-about-high-ratio-mortgages-in-canada

#202 Shawn Allen on 04.21.15 at 5:25 pm

Investment Education

Read everything about technical analysis. We need more people doing that so they can lose money to those of us using fundamental analysis. In order for some people to beat the index someone else has to trail the index.

#203 Mark on 04.21.15 at 5:35 pm

“What a nothing budget full of hot air and promises that won’t kick in years from now.”

Pretty much. I don’t think people are all that pleased with the status quo, especially now that RE prices have been falling for a year or two. A budget that doesn’t do anything to repeal the status quo, well, probably isn’t all that politically savvy.

So basically the Tories are going to go around during this election campaign claiming to be the steady hand on the tiller of the economy. The Dippers and the Libs will correctly point out that the economy is garbage, and that something needs to change. The latter message is a lot more compelling given the high unemployment (even if not reflected in official statistics), the low CAD$ (even if just temporary and driven more by speculation rather than fundamentals), and falling RE prices that are apparent to pretty much everyone except the delusional Realtors.

#204 Ben on 04.21.15 at 5:38 pm

Nobody got any books to recommend on starting a business and generating wealth to earn that $1MM required for a decent family home in Vancouver?

Why not? Because fiat has allowed asset prices to detach from wages. The solution? Apparently it’s to get on the fiat train ASAP via the stock market. Long term solution? We are not sure.

Last comment from Shawn Allen says it all – zero sum game.

#205 Nagraj on 04.21.15 at 5:44 pm

#171 Nathan Green

Watch them promote every false narrative known to mankind and then some. The higher the unemployment rate goes, the nuttier the explanations. And as the explanations get whackier, the pomposity of leadership achieves new heights.

#206 Mark on 04.21.15 at 5:54 pm

“Nobody got any books to recommend on starting a business and generating wealth to earn that $1MM required for a decent family home in Vancouver?”

Invest in inversely correlated assets, and wait for those $1M prices to come down and your assets to go up.

For instance, the example I have given often here is that someone who took their down-payment funds (25%), invested it in a TSE index fund (ie: the TIPS), and re-invested dividends. A decade later, with the combination of the market tripling, dividend re-investment, and a reduction in Toronto RE prices — the investment account contained enough in investments to buy the house outright in cash.

#207 everythingisterrible on 04.21.15 at 5:59 pm

#197 Boomer and Proud of It
You and Leroy Washington could start a blog on how NOT to troll.

#208 SWL1976 on 04.21.15 at 5:59 pm

#197 Boomer and Proud of It

YESSSSSS!!!!!!!

This budget ROCKS!!!!

Boomers win – and we DESERVE it!!!

If you are under 55, go whine in a corner somewhere. You are pathetic losers.

——————————————-

Sheeesh talk about entitled youth. People are a product of their environment.

Way to lead by example.

Cheers, and enjoy your entitlement. Just don’t be disappointed when it’s not all you thought it would be

#209 Shawn Allen on 04.21.15 at 6:14 pm

Stock Market is NOT a zero sum game

Ben at 204

Last comment from Shawn Allen says it all – zero sum game.

*************************************
If you mean that I said the stock market is a zero sum game, I did not.

On average the stock market rises, the average investor makes money from the customers of the businesses on the market.

It’s the trading part that is zero sum, buy and hold always wins long term, but some do even better than the index but only because some do worse. That trading part is zero sum, the market overall is very much a positive sum game.

#210 Shawn Allen on 04.21.15 at 6:16 pm

That is, buy and hold, the broad stock market INDEX, always wins…. it does not apply to individual stocks where some win but some go to zero

#211 Retired Boomer - WI on 04.21.15 at 6:28 pm

#193 #204 Ben

Wow. A jerk, a millennial jerk if I am reading the post correctly. Ben, whether you were born in 1910 as my father was, who graduated high school in 1928 to the start of the Great Depression or 1915 when my mother was born to leave high school -with her year older brother- in 1931 to go to work to help feed a starving family -where there were NO jobs, the stock market had lost 90-% of its value, crops failed, banks failed…. or a so called “spoiled
BOOMER born in 1951 (me) who upon graduation in 1969 saw a war tearing apart the values of a nation (vietnam) then a crap economy 73-74 a bust of near 50% inflation, intense job competition, high interest rates……

The POINT here Ben, is EVERY generation has its problems, challenges, and opportunities.

MF, HD, Ralph Cramdown, Freedom First, Garth, this writer, and a host of others try to offer constructive ideas. Yes, maybe we sound like redundant idiots at times, but maybe -just maybe- there are a few grains of wisdom there to be gathered.

Whether you invest in the market, fiat currency, or political promises, or beanie babies it is your choice. After 30+ years in saving & investing I can tell ya what I thinks works, don’t ‘need’ a house, and I am not the whiner here.

#212 bdy sktrn on 04.21.15 at 6:41 pm

$1MM required for a decent family home in Vancouver?
———
despite claims of falling prices, if you want move in condition, its now 1.5 in the downmarket drive area.
just looked at ALL solds in grandview for 2015.

All over ask.
avg under 7 days listed.
85% of sales were lot value, which has topped a mil for even the poorest addresses.
Very few ‘nice’ places are hotly competed for.

What my friend sold 42 months ago for 1.1 is now selling for 1.6-1.8, the rare ,well restored heritage house.

#213 pete on 04.21.15 at 6:48 pm

Harper is done. It will be nice to see him finally gone.

#214 Ben on 04.21.15 at 7:19 pm

Shawn – agreed the market overall is not zero sum. Many hear are speaking of trading this way and that – as you note to beat the market someone else has to loose. Yet they suggest everyone should do it. Not possible.

The market isn’t really a market now. It’s propped up. Now it’s a put on the state doubling down on fiat – which may be a good guess. Who knows. What it’s not tracking is wealth creation.

To the rest…think I’ve had my fill of boomer hypocrisy for the day. It’s like eating sugar – in plentiful supply but you can only eat so much before you feel sick. It is funny to see how few understand that the key to boomer success *was* the high inflationary period which inflated away debts. It’s oft cited as the primary time of hardship by boomers but it made most.

#215 maxx on 04.21.15 at 8:17 pm

#94 Kirk on 04.20.15 at 10:58 pm

[email protected] actually stuck her tongue out at me when I declined mutual fund advice and told her I mostly use ETFs. It was an instinctive, reptilian thing…”

So, [email protected] = the nice lizard at the bank? ;-P

#216 Retired Boomer - WI on 04.21.15 at 10:59 pm

#214 Ben

Your comment on “high inflation” may have “made the Boomers you could be somewhat correct there. First, you had to live through it, if you survived, and prospered by living on less than you earned form your two jobs then you are right. Bought that first house that was ‘worth’ 12,000 for 29,900 on an 8.75% MORTGAGE.

My last car cost more. My first new cost $3600. So go find that story and a half that’s 30 years old for $299,000 and we will be sort of even my friend. Oh, it wasn’t in over priced Vancouver, it was in Green Bay, WI. Try that interest rate ion for size my young friend see if you even ‘qualify’.

#217 SE Asian Expat on 04.21.15 at 11:02 pm

#20 Bob

What is thirsty underwear? Depends….

#218 MIke on 04.22.15 at 12:50 pm

Here is the message below that I have got from TD financial advisor when wanted to increase my TFSA limit for 2015 from 5,5k to 10k.Thank you.
Here are some of the highlights of the 2015 federal budget:
The budget proposes to increase the Tax-Free Savings Account annual contribution limit to $10,000;
The budget proposes to reduce the minimum annual withdrawal amount for Registered Retirement Income Fund holders;
The budget proposes to increase the Lifetime Capital Gains Exemption applicable to capital gains realized on the disposition of qualified farm or fishing property to $1 million; and
The budget proposes to decrease the federal small business tax rate to 9% by 2019.

*Please note the new budget has not yet been become law, and there is no set date for when these changes will go into effect. The changes, when they are implemented, will be effective for the 2015 tax year.

TD has recommended that we do not proceed with the additional TFSA contributions until the budget is passed into law.

TD is wrong. The budget tax measures are deemed to be law as of 4 pm yesterday. — Garth