Choices

BOZO modified

Josh is 28, single, gainfully employed ($125,000 a year) but lacks the one thing he says would make him a chick magnet. “No house. But I want to change that.”

He rents for $1,250 a month, has no debts, and is looking to buy a $300,000 townhouse in a distant GTA suburb. “My assets are $30,000 saved in my TFSA and $25,000 in an RRSP. Plus I have a few thousand in a locked-in account from an old job. So,” he asks, “is it a mistake to buy?”

By most measures, Josh is a rock star Millennial. Owes nothing. Doesn’t live in mom’s basement. Makes serious coin. Has fifty-five large in liquid assets. If he sticks with the current plan, saves big hunks of what he earns, shelters it from tax and embraces growth assets, he can be a god by forty-two.

Or, he can buy that townhouse.

I mean, seriously, how excited can a girl get about a guy who has little in the bank, carries a $250,000 mortgage, and takes her home to a cul-de-sac full of Chrysler minivans, tricycles, basketball hoops and skunks with ennui? But maybe that’s just me.

Besides, the mortgage would equal his rent, plus he’d have to shell out condo fees, property tax, insurance and the usual bag of extra costs – about $800 a month more. Come renewal time, Josh could count on the mortgage payment going up, and the property value going down, since they’re negatively correlated. Worse, he’ll then be in his thirties. Close to death.

The key question is this: is it worth trading liquidity and freedom for face bricks and debt?

The answer: not a chance. Especially now. As I keep trying to emphasize, these are the days to be liquid, not encumbered. Before long everyone will know why. But right now, a good portion of the population is seriously messed up. A survey days ago showed 31% of Canadians don’t agree with Ottawa’s budget move to virtually double the annual TFSA contribution limit, for example. Why would anyone oppose a government plan allowing you to invest money and pay no tax?

That’s simple. Because they think it’s not for people like them, and might help rich folk get richer. Kinda like why Albertans voted NDP. And here’s another survey, this one from CIBC, that’s equally weird. The bank found 90% of people have not, and will not, contribute the maximum annually to their plan (that’s ten grand, as you know). Fully 30% will contribute either less than they did last year, or nothing. And 20% said, TFSA? Is that a new designer drug?

So, figure it out. If you’re 30 today your accumulated contribution room by age 42 will be $130,000. If you had, say, $20,000 in a TFSA now (only half the amount you could have put in) and made the annual $10,000 contribution, plunking it into a nice mix of ETFs earning 7%, by 42 you’d have $223,928.

In other words, if Josh took the $800 extra he’d pay to own rather than rent and TFSA’d it, in a dozen years he could have almost a quarter million dollars liquid. To equal that, his cruddy townhouse would have to show an appreciation of 83% – or possibly far more depending on the pace of interest rate increases over the next two renewals. The chances of that happening are probably zero. And given the quality of suburban row house construction these days, that puppy could be in need of some serious upgrades just to retain its value.

Besides, this gives Josh way more options than spending a decade shoveling money into a yawning mortgage. If the real estate market takes a dive, he can jump in – maybe even buying a place with cash, then taking a HELOC against it and creating both a tax-deductible mortgage and an investment portfolio. Or he can keep at it, putting his $800 a month into the TFSA while spending the rest on babes and cars – and expect to have a tax-free account worth $1.82 million by age 65, of which $1.4 million would have come in taxless growth.

That TFSA, if still churning out 7% (the long-term average for financial markets) would give Josh $127,000 per year in unreportable income, and he’d qualify to collect his CPP and OAS (if it still exists). Plus the $1.8 million nestegg would not diminish.

Do you have any idea just how sexy a 65-year-old dude can be with a six-figure non-taxed income, a life of unfettered, possibly debauched, experiences and almost two million in the can? I mean, compared to a retired guy with a paid-off townhouse in the wilderness?

Pick your path, Josh. Remember what Meatloaf said.

228 comments ↓

#1 No fun city on 05.26.15 at 6:18 pm

A lady once said to me: Vancouver is like meeting the most handsome man without any character. How disappointing. She moved away.

http://www.cbc.ca/news/canada/british-columbia/vancouver-mind-numbingly-boring-economist-magazine-says-1.3087742

#2 TheAwakenedOne on 05.26.15 at 6:24 pm

FIRST !

Great reading on this one: I’m 35, and will keep this strategy in mind. :o)

#3 Questions questions! on 05.26.15 at 6:25 pm

Hey Garth,

So, interest rates and housing values are negatively correlated. But doesn’t the same hold true for interest rates and stock valuations? in other words, if you recommend not buying a house, why would you not also recommend staying away from buying stocks at this time?

Your insights are much appreciated!

Because stocks and rates are not negatively correlated. Many bull markets have continued as rates rose, since they result from an expanding economy. In any case, wise investors own balanced portfolios, in which large cap stocks form a minority position. — Garth

#4 Stvnda on 05.26.15 at 6:27 pm

How can you not do what Garth is saying? Just a bit of patience. I know, go around mowing lawns in your Neighbourhood and as the flies bite the crap out of you, ask yourself, is it really worth it? I’m with you Gartho!

#5 Amentet on 05.26.15 at 6:32 pm

28 year old male, six figures, good job, saver = single, no woman around.

Yea, our society had its priorities figured out.

My advice is to ditch the six figure job and invest in a bartenders license and a couple arm sleeves if women is what he cares about.

#6 Chaddywack on 05.26.15 at 6:33 pm

“Do you have any idea just how sexy a 65-year-old dude can be with a six-figure non-taxed income, a life of unfettered, possibly debauched, experiences and almost two million in the can?”

I don’t know Garth, but maybe you can shed some light on this? ;)

#7 Mark on 05.26.15 at 6:37 pm

How does a “28-year-old” find a $125k/year job in the GTA?

#8 james on 05.26.15 at 6:42 pm

#5

28 year old male, six figures, good job, saver = single, no woman around.

Yea, our society had its priorities figured out.

————

indeed. In eastern europe or other locales women would be pounding on his door. He’d need a bodyguard to walk down the street.

#9 DM in C on 05.26.15 at 6:44 pm

Remember what Meatloaf said.

“I’d do any thing for love. But I won’t do that.”

Right on.

#10 Ben on 05.26.15 at 6:45 pm

This post explains at least part of the Canadian house horniness – women are loathe to rent in Canada, and look down upon men who don’t own a place. Thus, men look to buy a particle board palace in hopes of attracting an Amazon of their own. This (perhaps overlooked) cultural phenomenon may be driving the current situation that G-man chronicles every day on this pathetic blog. Stay liquid, Josh. Cool chicks rent, and travel.

#11 Duane S. on 05.26.15 at 6:46 pm

Hi Garth,

In most of your analysis, you compare being illiquid (owning a house) vs being liquid (renting). What if you are in a position where you have a lots of liquid assets, but want to diversify into housing? Would you still be as opposed to it, or would you look at it as a hedge against what the markets may do?

#12 westcanguy on 05.26.15 at 6:47 pm

“Do you have any idea just how sexy a 65-year-old dude can be with a six-figure non-taxed income,…”

Garth, some 28 year old guy isn’t going to wait until he hits 65 in order to get all the strange he can handle… You don’t remember those days?

#13 mitzerboy aka queencity kid on 05.26.15 at 6:47 pm

meat loaf was allrite
but havin a balanced portfolio for 35 years + …
like garth sayz u’ll b lovin every minute of it.

party on blog dogs

#14 James on 05.26.15 at 6:49 pm

Maybe first? Whatever

Garth the last paragraph in today’s post might be one your best yet, had me smiling. Thanks as always buddy!

#15 Help on 05.26.15 at 6:50 pm

I’m 27, male, and am earning roughly 175,000 per year. Hopefully double that in 5 years time. Live in Victoria and thinking about buying a home for $500,000. Same reason….houses are a chick magnet. Granite countertops.

#16 Made in BC on 05.26.15 at 6:50 pm

The Govt Stole My Bike !!!!

#17 BOBO on 05.26.15 at 6:54 pm

28 yr old 50k to invest – Why not buy multi unit – tri plex or four plex, with the right buy these can have a good ROI and provide a place to live sat the same time

#18 Made in BC on 05.26.15 at 6:55 pm

#7 Mark on 05.26.15 at 6:37 pm
How does a “28-year-old” find a $125k/year job in the GTA?

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

Govt or Computer Software Engineer. But don’t worry. His salary will be really high in USD when the Cdn hits $1.50 to the USD right Mark?

#19 Freedom First on 05.26.15 at 6:57 pm

Josh. You’ve got it made in the shade. Don’t screw it up. Always remember, when it comes to women, you are the prize.

#20 Capt. Obvious on 05.26.15 at 7:06 pm

Wow. $125k/y at 28. That’s a problem I would have liked to have. That’s like winning the lottery if you have any financial sense at all, as Garth quite nicely illustrated.

#21 John on 05.26.15 at 7:08 pm

You lost me on a 28 year old claiming to earn $125,000. Not believable, but a nice coffee table knick-knack.

#22 Alberta Ed on 05.26.15 at 7:11 pm

He should buy a Harley and continue to rent.

#23 Leo Trollstoy on 05.26.15 at 7:13 pm

How does a “28-year-old” find a $125k/year job in the GTA?

Lol

#24 CRV on 05.26.15 at 7:14 pm

Hey Garth, how come most of the individuals in your illustration are making so much. They make me jealous. I am only making half of it.

I am 40 years old and still renting. It is difficult enough to live in expensive GVR. It is even more difficult to learn most of your readers are making double of mine at young age.

#25 Pharmboi on 05.26.15 at 7:15 pm

$1B LRT slated for Steeltown, and so my peers are pumping RE again, tell me to get in quick, because the value will never go down now! I do agree that the city is improving in certain pockets, but the RE pumping here for homes and condo is getting worse. It boggles my mind how people think “building equity” by speculating on real estate is not as dangerous as using margin and speculating on stocks.

If Josh is worth the big money he’s getting paid, then renting is a great way to stay mobile, in case an even better dream job of his comes along. A high paying job can be a pair of golden handcuffs, but if real estate becomes illiquid in the future, he will have a ball and chain.

#26 Mark on 05.26.15 at 7:17 pm

“What if you are in a position where you have a lots of liquid assets, but want to diversify into housing?”

Well its a matter of balance. If you have a couple million dollars in “liquid assets”, and want to buy an average house — its not the end of the world if one loses 50-60% on it, now is it? Presumably the rest of the portfolio has at least some inverse correlation to the house, and you wouldn’t be in the ‘poor house’ so to speak.

However, the advice that Garth usually dispenses, about renting instead of owning, is largely targeted towards those for whom home ownership at these prices would make their portfolios severely lopsided and un-balanced.

We know the average buyer is only bringing roughly a 10% down-payment to the table. As a recent entry showed, a good chunk of that “10% down-payment” is actually money borrowed or gifted from family — not legitimate savings by the borrower. Housing purchases under these circumstances and at these prices are guaranteed to create severely unbalanced portfolios, with some pretty extreme consequences on the highly probable downside.

The housing crash that is now pretty undeniably underway won’t actually destroy wealth in the aggregate, it will just redistribute it. Its all a question of whether one’s asset mix will see redistribution away from, or towards it, or be neutral overall.

#27 Peter on 05.26.15 at 7:24 pm

A 28 Y.O earning 125k? What industry pays this much for 28 Y.O. experience…? Unless a doctor or in finance?

#28 Nemesis on 05.26.15 at 7:25 pm

“Worse, he’ll then be in his thirties. Close to death.” – HonGT

#Evidently…

https://youtu.be/cB-DVomcEb4

#29 JimmyJoe on 05.26.15 at 7:25 pm

Garth. I’m new here. Never heard your comments on having a % of one’s assets in gold, or silver. I inherited 110 Krugerrands in 2002 and they’ve gone up in price and they now represent about 20% of my net worth.If I sell them would I have to pay cap gains? I don’t know what my Grandad paid for them. Or ,should I just hold them? Do any posters here have any suggestions what I should do with them? thanks a lot..

#30 Axis on 05.26.15 at 7:26 pm

Similar story from Victoria, minus the house lust. I am subtle about money because you keep more friends that way. Haven’t turned down any offers, seems some women aren’t interested in higher functioning men.

#31 Bytor the Snow Dog on 05.26.15 at 7:40 pm

@#22 Axis-

You be betabux. Chicks want alphafux….until they don’t. You should be happy to be Plan B.

#32 sideline sitter on 05.26.15 at 7:45 pm

I was that guy once… but I bought in 2005 and sold for more than double in 2012, and yes, owning a house is a chick magnet – but my house was downtown Toronto…

The NEW way to be an unencumbered chick magnet is to maybe up his rental by $300 (easy on his income) and rent out a spectacular place… chicks come and go, but some mortgages stay forever!!!

#33 ANON on 05.26.15 at 7:46 pm

Meatloaf said:
Go ahead, Cornelius, you can cry.
or
We’re still men

two out of three, ain’t that bad… :)

#34 X on 05.26.15 at 7:46 pm

I never understood the argument against increasing the TFSA, even if you don’t have the $ right now to put in, the amount you can deposit carries into the next year. If the media is whining about that, why don’t they argue to have the RRSP amount not carry over either….I mean, if you can’t max one, you probably can’t max the other….

I can only wonder how many more jobs will be lost with the NDP in Alberta, raising minimum wage to $15 increasing the tax burden on small business, taxing the big oil industry that provides the most jobs even more, is a double whammy of job cuts, on top of cheap oil.

#35 Ret on 05.26.15 at 7:48 pm

More cops and firefighters make over $100000 than those who make under. A correctional guard at Maplehurst in Milton made over $110,000 with some overtime and he is just a custodial guard. I don’t even think that he has to carry a gun.

Josh probably works for the TTC as a ticket collector!

Public sector salaries have gone through the roof in Ontario. Gotta keep the unions happy.

Industries and start up businesses can’t compete with government salaries.

#36 LL on 05.26.15 at 7:48 pm

# 15 – Help

I’m 27, male, and am earning roughly 175,000 per year. Hopefully double that in 5 years time. Live in Victoria and thinking about buying a home for $500,000. Same reason….houses are a chick magnet. Granite countertops

…”Granite countertops”…Yieurk…It’s so ugly!
Stainless steel fridge, stove, dishwasher soooo…uuugggglyyyyy!
Would fit better in a commercial kitchen.

#37 mindgmes on 05.26.15 at 7:52 pm

What if….

What if “balanced portfolio” was sold like most things around: at a fixed price at the time of purchase. Like a house. Or a business.

Let’s say the price of the “average portfolio” would be the same as an average house, 1 million dollars.

It would contain whatever amount of ETF, stock, etc. could be bought and put together in the the balanced portfolio at the time of the purchase.

You would buy the balanced portfolio anywhere between bottom or top cycles of the included securities, with no no option of rebalancing before selling it. Just like in case of a house.

You could purchase the 1 million dollar portfolio for cash or with various down payment options, plus mortgage, with the same rates and same conditions as offered for real estate.

When it came to this portfolio, it would work like real estate, you would have to sell the entire portfolio in one trade. The same tax treatment would apply: no tax benefit when purchasing it, no tax when sold, if it was your first portfolio.

How would the 1 million dollar house investment return compare with the 1 million dollar balanced portfolio investment 25 years later?

#38 Mark on 05.26.15 at 7:52 pm

“Govt or Computer Software Engineer. But don’t worry. His salary will be really high in USD when the Cdn hits $1.50 to the USD right Mark?”

Computer Software Engineers at 28 mostly are lucky to make even half of that (and large numbers are unemployed or underemployed).

I inherited 110 Krugerrands in 2002 and they’ve gone up in price and they now represent about 20% of my net worth.If I sell them would I have to pay cap gains? I don’t know what my Grandad paid for them.

Your obligation for capital gains is on the difference between the price you inherited them at (ie: go look up the price of gold in CAD$ in 2002), and what you sold them at. Your grandfather’s purchase price is irrelevant unless you’re doing his Estate’s income tax return.

20% of a portfolio does seem perhaps a bit on the high side (its higher than my personal allocation to gold/gold stocks), but then again, we have financial planners who routinely advise people to hold upwards of 50% in bonds which seems like a lot to one asset class as well. Over the long term, bonds and gold have similar performance — a real return of approximately zero. Typically, once in a person’s lifetime, the value of gold and bonds is practically wiped out at different points in the cycle, so periodic rebalancing is critical.

#39 Andrew Woburn on 05.26.15 at 7:54 pm

Wikipedia got there first.

“Bowerbirds /ˈbaʊərbɜrd/ make up the bird family Ptilonorhynchidae. They are renowned for their unique courtship behaviour, where males build a structure and decorate it with sticks and brightly coloured objects in an attempt to attract a mate.

The most notable characteristic of bowerbirds is their extraordinarily complex courtship and mating behaviour, where males build a bower to attract mates. There are two main types of bowers. One clade of bowerbirds build so-called maypole bowers, which are constructed by placing sticks around a sapling; in some species, these bowers have a hut-like roof. The other major bowerbuilding clade builds an avenue type-bower made of two walls of vertically placed sticks. In and around the bower, the male places a variety of brightly colored objects he has collected. These objects — usually different among each species — may include hundreds of shells, leaves, flowers, feathers, stones, berries, and even discarded plastic items, coins, nails, rifle shells, or pieces of glass. The males spend hours arranging this collection. Bowers within a species share a general form but do show significant variation, and the collection of objects reflects the biases of males of each species and its ability to procure items from the habitat, often stealing them from neighboring bowers. Several studies of different species have shown that colors of decorations males use on their bowers match the preferences of females.

Bowerbirds have also been observed creating optical illusions in their bowers to appeal to mates. They arrange objects in the bower’s court area from smallest to largest, creating a forced perspective which holds the attention of the female for longer. Males with objects arranged in a way that have a strong optical illusion are likely to have higher mating success.[19]”

#40 PM on 05.26.15 at 7:54 pm

A 28 Y.O earning 125k? What industry pays this much for 28 Y.O. experience…? Unless a doctor or in finance?

Software. A 28-year old is could be a intermediate to senior developer. At my shop that’s $110-$140K/year.

#41 Trojan House on 05.26.15 at 7:54 pm

“Josh is 28, single, gainfully employed ($125,000 a year) but lacks the one thing he says would make him a chick magnet. “No house. But I want to change that.”

He doesn’t need a house to get chicks, he needs to step up his game. I suggest he checks out the Return of Kings blog. That should help him.

#42 Mister Obvious on 05.26.15 at 7:55 pm

From Wikipedia:

“Many weaver species are gregarious and breed colonially. The birds build their nests together for protection, often several to a branch. Usually the male birds weave the nests and use them as a form of display to lure prospective females.”
——————-

Such behavior is for the birds.

#43 raisemyrent on 05.26.15 at 7:59 pm

all these people making 6 figures in their 20s make me question my life. I thought I was top 10-20% or whatever. but incomes are supposed to be low in Bring Cash.
either way, great post. reminds me of my summary of the spreadsheet I generated for my girlfriend’s sister, who is looking to tap into the Bank of Mum to buy a 100+ year old bungalow in Victoria. It goes like this: Mum, you could give me money for me to sign a 25 year loam to pay hundreds of thousands of dollars in interest to own a 130 year old turd, or I could have 1.4 million in the bank (7% discount, 2% inflation) and all the freedom in the world. Sounds like an easy choice doesn’t it? But emotions do funny things to brains.
it seems as though they’ve backed down, but GF says Mum still feels a mortgage is a good gift.

#44 Harley Rentinson on 05.26.15 at 8:00 pm

#22 Alberta Ed

He should buy a Harley and continue to rent.

——-

You mean, rent a Harley, right?

#45 Sixtyfourk on 05.26.15 at 8:00 pm

#29 Jimmy

I’d probably keep most of them but if you want to sell them then do it a few at a time at local coin store or pawn shop.

You might be able to get gold spot for them. Don’t take much less than you see the bid for here:

http://www.bullioncoinsandbars.com/products-gold-coins.htm

Sell for cash. Under 10k each time. If anyone asks, you lost them in a tragic boating accident. :-)

#46 devore on 05.26.15 at 8:00 pm

Hmm, that’s the kind of woman I’m looking for, the kind that wants to know if I have a house. People easily impressed by material things don’t really excite me. But that’s just me, and what do I know.

#47 Chick rental on 05.26.15 at 8:02 pm

He should obviously consider renting the chick instead of buying it.

Rental chicks don’t care about marble counter tops.

#48 gladiator on 05.26.15 at 8:02 pm

It is you, Garth.
Don’t you know that in Canada house “ownership” is the latest and strongest type of aphrodisiac?
No girl can touch a portfolio, but bring her into “your” home and she’ll make your wildest fantasies come true.

#49 Brunett43 on 05.26.15 at 8:02 pm

I’ve been here a few weeks now getting some really good financial advice from good ole’ Garth and some of you other dogs in here. Ironically, today in my mailbox came a “special invitation” to a private pre-auction event “FLIPPING ONTARIO”. It states that I would gain insider access to private pre-auction R/E, up to $500,000 pre-approved funding , access to government -guaranteed R/E programs and the use of “their” cutting edge strategies. WOW! Plus the VIP package includes free MP3 player, secrets to success DVD and enter to win a free IPAD!! Included in the mail was 2 tickets to the event worth $146 ea. Courtesy of Mike Baird and Greg Herlean whom ever they are?
Of course I’m not going, however, I would go if I knew Garth was there to pick their brains and bring the whole event to a halting screech! That would be pure entertainment!!

#50 JD on 05.26.15 at 8:06 pm

I met Smoking Man earlier than other Tuesdays.
He is not coming to visit you dogs today.

#51 devore on 05.26.15 at 8:07 pm

#29 JimmyJoe

If I sell them would I have to pay cap gains? I don’t know what my Grandad paid for them.

It doesn’t matter what he paid for them, it only matters what they were worth when they changed hands. You can look up historical gold prices and exchange rates.

#52 Washed Up Lawyer on 05.26.15 at 8:11 pm

Josh, Josh, Josh.

A suggestion. Over the next 6 or so months, put aside the amount over and above your rent that the townhouse would cost.

Then buy a Martin D-28 and an old Gibson SG. Learn C, F, G and A Minor and 180 railroad songs. Spend $240 bucks on a pair of Tony Lama boots and a pair of Wranglers.

You’ll be off to the races with the women. Oh, wait. You are in the GTA. How do you feel about a move to Calgary?

#53 Nagraj on 05.26.15 at 8:13 pm

Little Flower (formerly Josh)
Our Lady of the Cherubim Monastery
Passo del Brennero, Italy
May 26, 2025

Dear Mr. Turner,
Some years after conscientiously following your advice I realized I was nonetheless perpetually seized by a grand ennui. First I underwent a sex change. But I was still mortally bored. I then underwent a religious conversion. I am now “The Little Flower” growing happily in spirit here amongst my silent sister Discalced Carmelites at their Brenner Pass convent.
As you know Discalced means barefoot indicating zero worldly possessions. What moneys I owed to your good advice I have given to the Church.

I hope this letter finds you well and still alive.

You’ll be pleased to know we also keep a kennel of St.Bernhards, and I have named one of them Gartho, he’s a very smart dog.

Prayerfully yours, Sister “Josh” The Little Flower

#54 Retired Boomer - WI on 05.26.15 at 8:15 pm

Poor Josh..

He makes MORE than the wife and I combined. We built our new home in 1997. 20% down. Paid it off in 2010.
Yeah, just before retirement time!

So, my young stupid friend, what ya gonna do? Save half of that income for 15 years and contemplate early retirement, or buy a SFH-no condo. Can’t ‘do’ both.

Yeah, I own a home. I get property tax maintenance, insurance, costs me almost $700 a month just to say I “own” it. You rent for twice that, and mine is paid for.
Sure, dump 4 times what you’ve saved into it and we’ll be even.

It is merely a place to sleep, take a dump, fix meals, wash my duds, and entertain (rarely). I have to cut grass, shovel snow pay ALL the utilities, and worry about resale.

When crap stops working it is on me!

Sure, dumb ass you CAN own a home, but why?

Invest that large income, find a nice lady who wants YOU, not what you might be mortgaged to for 30 years. If she insists on a house, run like hell away from the gold digger.

Advice is worth what you pay for it, but having had the same cute broad for nearly 41 years, trust me, find the right lady, then worry where you will wash your shorts!

There is MUCH more to life than a F&@k’n house!! Don’t be so narrow, Josh my boy.

#55 Rexx Rock on 05.26.15 at 8:21 pm

Lots of B.S. about making six figure incomes on this blog.I bet most of these liars make $25,000 and work at starbucks.Whats next I’m 16 and make $150,000 a year,should I buy a condo in Vancouver Garth?Whats even more funny is continually making over 7% from investments every year.

Balanced portfolio (60-40) average over the last five years is 7.8%. — Garth

#56 espressobob on 05.26.15 at 8:25 pm

Josh will actually be making more than 125k a year if he invests in a TFSA, RRSP, & non-reg account over time. A lot more! Life’s a bitch.

#57 PharmBoi on 05.26.15 at 8:27 pm

At those who think it’s made-up that a 28 year-old is pulling in $125K, you’d be surprised at what is possible. Remember, not everyone likes to brag about how much they make and then show it off by buying flashy toys.

Be at the top of your game, don’t burn any bridges, and you will get noticed, either internally or externally within your industry.

#58 Drunk Actuary on 05.26.15 at 8:33 pm

28 years old here too. 105 000 per year. I can tell you for sure some women look down at me cause I rent and dont have a nice car.

Two of my friends have astronmic debt, houses, nice cars , motos and tattoos, pretty much have women lining up to date them.

It’s 2015, wake up guys, it’s all about the look and the flash, that’s how people judge if you’re successful or not.

A 30 years old with 150K in liquid assets and renting will be looked down at. A 30 years old with 500K in debt but a huge house and car will be a successful god. That’s the way it is.

#59 Bytor the Snow Dog on 05.26.15 at 8:35 pm

Deleted without even a mention.

Is the wife moderating tonight? Again?

I deleted nothing, but that may now change. — Garth

#60 DisgustMadeMePost on 05.26.15 at 8:36 pm

Guess I picked the wrong profession…

Sheesh, oh to have problems like that!

I gotta know right now! Before we go any further….

But Garth is WAY right on this one.

#61 Drill Baby Drill on 05.26.15 at 8:37 pm

“Do you have any idea just how sexy a 65-year-old dude can be with a six-figure non-taxed income, a life of unfettered, possibly debauched, experiences and almost two million in the can?”

Yeah about as sexy as a 65 year old guy with no hair, beer gut, a hand full of Viagra and dreaming about paradise by the dashboard light.

#62 Smoking Man on 05.26.15 at 8:39 pm

#47 JD on 05.26.15 at 8:06 pm
I met Smoking Man earlier than other Tuesdays.
He is not coming to visit you dogs today.
….

Guess what’s the hottest commodity in Tennessee is , biggest job Growth.

Prediction, shortages of Jack coming to an lcbo near you.

#63 Smoking Man on 05.26.15 at 8:40 pm

#33 ANON on 05.26.15 at 7:46 pm
Meatloaf said:
Go ahead, Cornelius, you can cry.
or
We’re still men

two out of three, ain’t that bad… :
……

I was thinking paradise by the dash board light.

#64 Thomas on 05.26.15 at 8:40 pm

It’s only a matter of time before Millennials take over, Garth:

http://business.financialpost.com/investing/trading-desk/millennials-are-the-next-big-investment-trend-heres-how-to-play-it?__lsa=7b09-fc7f

Ooooooohahahahhaahha!

#65 Made in BC on 05.26.15 at 8:44 pm

#38 Mark on 05.26.15 at 7:52 pm
“Govt or Computer Software Engineer. But don’t worry. His salary will be really high in USD when the Cdn hits $1.50 to the USD right Mark?”

Computer Software Engineers at 28 mostly are lucky to make even half of that (and large numbers are unemployed or underemployed).

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

Wow…is there ANYTHING you don’t know Mark? Heck in this case you know more than the guys working in our company that make……$140K a year, are under 30 and are Computer Software Engineers…..

Swami Mark…..do you wear one of those funny hats too?

#66 DisgustMadeMePost on 05.26.15 at 8:46 pm

Josh, do you keep your income a secret from the potential women in your life??

Seriously can’t believe if a woman knew your ability to earn, that they would care about what you own.

Where do you meet these gold diggers? Just don’t think you’re looking for the right person.

A potential mate should be working with you to fulfill your life goals. Maybe I’m too old to understand the younger generation…

#67 Italians love real estate on 05.26.15 at 8:47 pm

Buy the townhouse Josh and consider taking in a room mate. Get that sucker paid down fast.

The minute you have some equity consider buying another and Renting it out, top and bottom floors.

Lather , rinse and repeat.

It is the Italian Canadian recipe for wealth and it works

#68 Grapple Jack on 05.26.15 at 8:47 pm

I say ” Good for Josh”. The only problem I see is his youthful experience. The software biz has a wild turnover…and $125 p/a today can easily mean unemployment tomorrow…..just talk to the guys at Blackberry etc etc etc etc. One misstep or competitive innovation and a bizness/career is history.; If he’s worried about meeting females he should be down where all the action is…in a micro loft above the club scene. he’s not going to meet anyone interesting in a distant burb.

And…if job loss becomes a reality…then he can up and leave with his pile of cash and continue having fun…while he upgrades to the newest code in vogue online in a beach lounger.

For those Obama fanatics…it looks as if his climate change agenda might not last till the end of his term as courts drill down on the legality of many of his ‘executive orders’ and pet projects.

http://www.washingtonpost.com/blogs/the-fix/wp/2015/05/26/obama-courts/

This is why I conclude that 5 billion kids starving due to their countries lack of petroleum revenue will be a far weightier political motivator than satisfying the zeitgeist of a few fanatics.

Here in Canada I think PM Harper will bring down the hammer on the foreign funded fanatics using legal sideshows to impede Canada’s resource industries. I think he has fulfilled his destiny as Canada’s longest serving PM and will want to cement a legacy of his own when the next majority is in his back pocket.

I think he will use the not withstanding clause to deflate the nutzo environmentalist movement to push projects to completion and open the revenue floodgates so that he will leave office with the streets of Canadian cities and hamlets flooded with petro gold.

#69 Italians love real estate on 05.26.15 at 8:48 pm

By the way , all you 28 year olds with 100 k plus salaries must all be teachers.

Teachers union worse than any mafia anyone has ever known.

#70 JuliaS on 05.26.15 at 8:51 pm

Quoting Bill Burr about marriage:

Would you go skydiving if you knew only half the parachutes opened up? The rates of divorce are statistically at about 50% and the consequences aren’t pretty, yet people still do it.
– Is this the line to losing half my stuff? Right on!

#71 Bytor the Snow Dog on 05.26.15 at 8:52 pm

Ah Garth, I’m still a bit sensitive that my cowboy/butterface joke didn’t go through.

#72 Lana Del Ray on 05.26.15 at 9:03 pm

You say that you wanna go
To a land that’s far away
How are we supposed to get there
With the way that we’re living today?

You talk lots about God
Freedom comes from the call
But that’s not what this bitch wants
No what I want at all

I want money, power and glory
I want money and all your power, all your glory
Alleluia, I wanna take you for all that you got
Alleluia, I’m gonna take them for all that they got

https://www.youtube.com/watch?v=JzHzVk971J0

#73 Mark on 05.26.15 at 9:05 pm

“Wow…is there ANYTHING you don’t know Mark? Heck in this case you know more than the guys working in our company that make……$140K a year, are under 30 and are Computer Software Engineers…..”

That’s statistically rare, is not supported by any salary survey out there, and is indicative of an employer who proably doesn’t have a good grasp on finding value in the marketplace. As ads for qualified computer/electrical/software engineers in Canada are known to elicit responses of hundreds of resumes.

Of course, just because something is rare, doesn’t mean it doesn’t exist. But compensation levels of half of that are more typical in the computer engineering profession at the moment for that level of experience.

#74 TRT on 05.26.15 at 9:10 pm

Richmond BC council has just unanimously just approved that store signs can be in any language. The retail businesses with Mandarin or Cantonese only signs will dominate the landscape now.

Make sure you brush up your language skills next time you are here Garth. BS walks, Votes talk.

#75 Lotus YVR on 05.26.15 at 9:17 pm

One really must ask where is this real estate frenzy going to go to in YVR.

Today, on one of my favorite beach walks, (Spanish Banks, close to UBC) , I met a friend who owns a modest house on the West Side, (Arbutus Area), of Vancouver.
He told me that last week he had 3 overseas persons, no realtor present, in his backyard wanting to buy his home for upwards of 1.8 million.
He was shocked, and shewed them away.
Later in the week a real estate agent offered to buy his home. The offer was 100K deposit and to close in February 2016. Did the realtor want the home for himself or? I do not know.

I have seen booms and busts before. This boom is quite surreal!

Will this craziness end only when there is a total collapse?

To the 28 yr. old earning $ 125K… It is entirely your decision of course, whether to by now or wait.
All that I can recommend at this time is that you continue to read Garth’s Blog for at least a month before you make a decision.
Alternatively, if you really have a need to have land to impress someone, buy a cottage outside of a major centre. I hear that they are going at low prices.

#76 Kreditanstalt on 05.26.15 at 9:23 pm

$125,000/year?? Who pays him? And what for?

(And now for some REAL people…!)

#77 johnnyfish on 05.26.15 at 9:23 pm

Honestly who cares about Josh. With that kind of coin at 28 he is laughing. If it is true. Big delema , what do I do with all this money. What a joke. Next……….

#78 Leo Trollstoy on 05.26.15 at 9:27 pm

Swami Mark…..do you wear one of those funny hats too?

Forget 6 figures.

He has a hard time finding a job.

My nephew is 28 and makes $125k as a software engineer/consultant. It’s not a big deal. He’s a smart kid.

#79 Trevie on 05.26.15 at 9:29 pm

I’m mid 30’s and rake in 60k a year and chicks still dig me. Less time at the office more time at the gym = more hair on the head and a chissled stomach.

125k a year means you eat,sleep and drink your job – no thank you!

#80 Leo Trollstoy on 05.26.15 at 9:30 pm

28 years old here too. 105 000 per year. I can tell you for sure some women look down at me cause I rent and dont have a nice car.

I’ll give you a hint.

It’s not cuz u rent.

It’s called social skills. Your friends have it.

#81 bigrider on 05.26.15 at 9:31 pm

.#17 BOBO on 05.26.15 at 6:54 pm
28 yr old 50k to invest – Why not buy multi unit – tri plex or four plex, with the right buy these can have a good ROI and provide a place to live sat the same time

You are an Italian Canadian just like the guy Italians love real estate right ?

Bet you’re the same guy

#82 bigrider on 05.26.15 at 9:35 pm

#70 -JuliaS on 05.26.15 at 8:51 pm
Quoting Bill Burr about marriage:

“Would you go skydiving if you knew only half the parachutes opened up? The rates of divorce are statistically at about 50% and the consequences aren’t pretty, yet people still do it.”

Thing is Julia, women know the 50% that open ahead of time and that’s why they are so willing to take the plunge !
– Is this the line to losing half my stuff? Right on!

#83 lee on 05.26.15 at 9:36 pm

28 year old police officers in Toronto who started at 19 are making almost $200000 a year inclusive of benefits and overtime. Check the sunshine list. Industrial electricians with ten years zare close to that too.

#84 Leo Trollstoy on 05.26.15 at 9:36 pm

I inherited 110 Krugerrands in 2002 and they’ve gone up in price and they now represent about 20% of my net worth.

Sell them.

Use proceeds to buy shares of Berkshire Hathaway.

Go to bed for 40 years.

Wake up rich.

Easy.

#85 Bar convo on 05.26.15 at 9:37 pm

Let’s go baby… let’s go to my place… I’ll show you my portfolio… it may seem tiny now, but it will make you scream by the time I am 65…

#86 Leo Trollstoy on 05.26.15 at 9:41 pm

My friend’s kid is a cop in Toronto. Big boy. Says with paid duty he pulls in close to $200k a year. Lots of time on the job, but he’s willing to do it until he and his wife decide to have kids.

Yeah he showed me his name in the Sunshine list. Nice gig.

#87 Washed Up Lawyer on 05.26.15 at 9:43 pm

Oh and Josh, the right Gibson SG might outperform the stock market nicely.

“Eric Clapton used a 1964 Gibson SG Standard starting in 1967 while in Cream. In spring 1968, the SG was loaned to Jackie Lomax, an associate of George Harrison. The [SG] was later sold to Todd Rundgren for $500 before eventually being sold to a private collector for about $500,000.”

Source – Wiccan pedia.

#88 bigtown on 05.26.15 at 9:43 pm

There is a growing divide between the wealthy and the working class but cancelling the $10,000 limit to the TFSA will not address the gulf between the rich and the not so rich.

#89 Like me on 05.26.15 at 9:48 pm

https://www.google.com/?gws_rd=ssl#q=how+old+is+mark+zuckerberg

31 years (May 14, 1984)

#90 Smoking Man on 05.26.15 at 9:56 pm

#88 bigtown on 05.26.15 at 9:43 pm
There is a growing divide between the wealthy and the working class but cancelling the $10,000 limit to the TFSA will not address the gulf between the rich and the not so rich.
……

Yes and its all in there heads.

The rich take risks, they have self confidence and drive.
They are not afraid of trying and failing, only got to be right once.they get it. Never blame others for there oun mistakes .

The working class are bi products of our institutional , industrial educational complex. From kindegarden to PhD you are taught and conditioned to serve a master. Trade your time for wages. Your upside is capped.

The rich trade things for profits. Now up side limits.

The differance betwen Working class vs Rich

Attitude’s spirit.

#91 Kreditanstalt on 05.26.15 at 9:58 pm

#88, yes there IS a growing divide but as $60/hour logging truck drivers tell us it is not between “the working class” and “the wealthy”. Sometimes they are one and the same.

The real divide is between the working gentry 25% – those people with secure careers in government, resource workers, technicians, middle management and many wealthy pensioners – and the insecure under- or un-employed majority.

The former group never lost salary, seniority, hours, overtime or their jobs in 2008-2009 and are spending like drunken sailors even today…and as a result everything is geared toward attracting that discretionary income.

#92 Porsche on 05.26.15 at 10:01 pm

From my sister today on holidays via FB

Okay ladies…..we were at Costco this morning in Sandpoint, Idaho…..I bought a pair of black pants identical to my lululemon groove-pant….I’m not even kidding….friggin identical in look, material and fit….the difference….I paid $94.00 for my lululemon’s and this mornings purchase…….wait for it…..$5.00!!!! Yup….five bucks…..I wish I could have tried them on in the store before we left because we are now very far away from that location….finally tried them on and they fit perfectly….I would have bought 4 or 5 pairs if I’d only known they would fit so nice. Boy do we get ripped off by Lululemon…..

#93 Italians love real estate on 05.26.15 at 10:04 pm

Bigrider 26.15 at 9:35 pm
#70 -JuliaS on 05.26.15 at 8:51 pm
Quoting Bill Burr about marriage:

“Would you go skydiving if you knew only half the parachutes opened up? The rates of divorce are statistically at about 50% and the consequences aren’t pretty, yet people still do it.”

Thing is Julia, women know the 50% that open ahead of time and that’s why they are so willing to take the plunge !
– Is this the line to losing half my stuff? Right on!

——–
Hey piasano Bigrider where have you been ?! You were always one of my favorites , especially with your version of italian:English ease you used to use. “Uppa uppa uppa” is classic stuff for this blog… Of legends ! The reason I started posting !!

Good to see you back

#94 Some Humour on 05.26.15 at 10:08 pm

Remember what Meatloaf said.

“Ain’t no doubt about it, we were doubly blessed.
Because we were barely 17 and we were barely dressed?”

I was just borned when dat song came out! ;)

#95 Mark on 05.26.15 at 10:09 pm

“Sell them.

Use proceeds to buy shares of Berkshire Hathaway.

Go to bed for 40 years.

Wake up rich.

Easy.

Living up to the Troll nickname again, aren’t you? Anyways, if you were a real professional financial advisor (which you aren’t), you’d understand that it is both unethical to promise a return (ie: “Wake up rich” after “[going] to bed for 40 years”, as well as advising heavy concentration in a single stock, in a single country, heavily exposed to a single sector (financial services) and the management style of a single man who almost certainly won’t be around 40 years from now.

There’s nothing wrong with owning gold. There’s nothing wrong with owning stocks. Nor bonds or housing. The key thing is that people who are over-exposed to any of them will suffer disproportionately at certain points in the overall cycle. Whether 20% of a portfolio is too high for an allocation to physical gold is something that’s perfectly up for debate (and IMHO, quite aggressive considering the average portfolio has less than 1% gold exposure). But merely to suggest that he sell the entirety of a solid long-term asset that happens to be quite out of favour, to performance-chase BRK strikes me as being completely irresponsible.

#96 Blacksheep on 05.26.15 at 10:13 pm

The Loafs most poetic verse:

“So now I’m praying for the end of time…to hurry up and arrive…cause if I gotta spend another minute with you, I don’t think that I can really survive, I’ll never break my promise or forget my vow, but god only knows what I could do right now, I’m praying for the end of time…so I can…end…my…time…with…you!!!

It was long it was ago, far away, and so much better than it is today..

Five beer, no Google = Pure Blacksheep.

#97 28, CA, $120K, etc. on 05.26.15 at 10:23 pm

You can be 28 years old, Canadian, making $120K and sipping Johnnie Walker Blue on thousands years old ice rock in the company of Eva Longoria at the Monaco Grand Prix race track.

I know one. He sends his regards to Garth for the idea of the TFSA.

http://www.newzcard.com/celebrities/h9f7y/card/XWKGlY/eva-longoria-with-a-brand-ambassador-at-symphony-in-blue-hosted-by-johnnie-walker-blue-label-on-may

#98 lee on 05.26.15 at 10:24 pm

Leo,

Yes, it’s agood gig policing, but the Province in bankrupt. Expect your taxes to go up 3-4 per cent over the next five years, and of course realty taxes will soon shoot upwards. The unions won’t allow job cuts so it’s taxes up up up. Economic growth won’t bail us out. 12 billion is 10 per cent of the gdp of this province. Cops deserve more than the average worker but not four times. That is not sustainable. And we are all paying for it.

#99 Randy Randerson on 05.26.15 at 10:25 pm

The people of Socialist Republic of Canada all want their TFSA’s taken away completely, because everyone wants to be poor, unemployed, and live on public teats.

#100 TurnerNation on 05.26.15 at 10:31 pm

He said: Pair of dice by the dashboard light?

This means he should become a pok’er star?

#101 Smoking Man on 05.26.15 at 10:33 pm

#95 Mark on 05.26.15 at 10:09 pm
“Sell them.

Use proceeds to buy shares of Berkshire Hathaway.

Go to bed for 40 years.

Wake up rich.

Easy.

Living up to the Troll nickname again, aren’t you? Anyways, if you were a real professional financial advisor (which you aren’t), you’d understand that it is both unethical to promise a return (ie: “Wake up rich” after “[going] to bed for 40 years”, as well as advising heavy concentration in a single stock, in a single country, heavily exposed to a single sector (financial services) and the management style of a single man who almost certainly won’t be around 40 years from now.

There’s nothing wrong with owning gold. Therits e’s nothing wrong with owning stocks. Nor bonds or housing. The key thing is that people who are over-exposed to any of them will suffer disproportionately at certain points in the overall cycle. Whether 20% of a portfolio is too high for an allocation to physical gold is something that’s perfectly up for debate (and IMHO, quite aggressive considering the average portfolio has less than 1% gold exposure). But merely to suggest that he sell the entirety of a solid long-term asset that happens to be quite out of favour, to performance-chase BRK strikes me as being completely irresponsible.
…..
Man your annoying…

Its like your on a mission to show the world how intellectual you are. Where did the low self-esteem kick in. An un satisfied mate who beat you, an over bearing mom, a wimp dad.

Sibling rivalry.. Why are you so fkd is what my JD inspired thump is typing .

#102 Hank on 05.26.15 at 10:35 pm

All you Mark trollers….

Lay off Mark.

Yup, his writing style is dry and pedantic at times, but that isn’t a reason to attack him. Maybe he is on the autism spectrum.. or maybe he’s just a cool guy that doesn’t respond to trolling.

Anonymity doesn’t accede being a dick.

#103 Joe Schmoe on 05.26.15 at 10:39 pm

Yikes, people are really put out by a 28 YO making 125K.

It happens. Real easy. I think I was making $105K when I was 28 and that was 13 years ago. And I am not smart. Or handsome. Just a ho hum engineer at that point.

Best advice I can give is be smart. Plan ahead, think long term. When you are 32-34 and have even more wealth, you can still date 24-28 year old women.

As a wise man once said: “I get older, they stay the same age”

#104 sheer precaution on 05.26.15 at 10:48 pm

#92 Porsche

From my sister today on holidays via FB

Okay ladies…..we were at Costco this morning in Sandpoint, Idaho…..I bought a pair of black pants identical to my lululemon groove-pant….I’m not even kidding….friggin identical in look, material and fit….the difference….I paid $94.00 for my lululemon’s and this mornings purchase…….wait for it…..$5.00!!!! Yup….five bucks…..I wish I could have tried them on in the store before we left because we are now very far away from that location….finally tried them on and they fit perfectly….I would have bought 4 or 5 pairs if I’d only known they would fit so nice. Boy do we get ripped off by Lululemon…..

=====

I would wait for a few downward facing dog (Adho Mukha Svanasana) in the crowded hot yoga studio, at the in front of the mirror row before coming to the final judgement on this. Just out of sheer precaution.

#105 BS on 05.26.15 at 10:49 pm

65

Wow…is there ANYTHING you don’t know Mark? Heck in this case you know more than the guys working in our company that make……$140K a year, are under 30 and are Computer Software Engineers…..

Swami Mark…..do you wear one of those funny hats too?

Mark was dead on that a Software Engineer makes about half of $125K per year in Canada. Maybe your buddies are lying to you about their salary? If not they are very special.

The average pay for a Software Engineer is C$66,383 per year. Most people move on to other jobs if they have more than 20 years’ experience in this field. Experience has a moderate effect on income for this job.

http://www.payscale.com/research/CA/Job=Software_Engineer/Salary

#106 GTA Observer on 05.26.15 at 10:57 pm

25% of commenters: “This post explains at least part of the Canadian house horniness – women are loathe to rent in Canada, and look down upon men who don’t own a place. ”

Another myth, like that of HAM?

#107 Leo Trollstoy on 05.26.15 at 10:57 pm

Yup, his writing style is dry and pedantic at times, but that isn’t a reason to attack him. Maybe he is on the autism spectrum.

Lol

#108 BS on 05.26.15 at 10:58 pm

101 Smoking Man:

Man your annoying…

Kettle, meet the pot.

#109 DisgustMadeMePost on 05.26.15 at 11:01 pm

I want you
I need you
But there ain’t no way I’m ever gonna love you ( without a house)…

2 outta 3 ain’t bad

Gotta love Meatloaf

#110 Obvious Truth on 05.26.15 at 11:05 pm

Haven’t read the posts tonight but this blog entry sounds like a fat pitch for freedom first.

Josh. You’re kidding. Townhouse in the burbs. What’s next. Saturday strolls at ikea?

Get to 200k by 35. No savings needed after that (if it were me). Watch the rule of 72 (time proven garth specialty) take over from there.

And get a puppy. Or a small sailboat. Or both. Immediately. Don’t forget to give the dog and the boat a name with some depth. Ask nagraj.

Let the good times roll.

#111 financial goals on 05.26.15 at 11:07 pm

When you are 32-34 and have even more wealth, you can still date 24-28 year old women.

——-

Man… how much should be my liquid net worth to do the same at 65?

#112 Smoking Man on 05.26.15 at 11:07 pm

#102 Hank on 05.26.15 at 10:35 pm
All you Mark trollers….

Lay off Mark.

Yup, his writing style is dry and pedantic at times, but that isn’t a reason to attack him. Maybe he is on the autism spectrum.. or maybe he’s just a cool guy that doesn’t respond to trolling.

Anonymity doesn’t accede being a dick.
…..

Why not, I’m trying to inspire the bastard. He can never be a glorious world famous fiction writer with the dry chalk he thumbs on a white board..

I have an excuses, dyslexia. Like trying to swim up the niagara river with ten pound waights on my ankles.

But I keep trying. I’ll never give up. Writing needs to send a message that others can relate to, while being entertain-ing.

He don’t get that.. He’s a robot with no soul.

#113 MF on 05.26.15 at 11:07 pm

Some great comments tonight. I too feel inferior and depressed when I read about these kids making double what I do in a year. Someday I aim to have my investments add considerably to my income. Gotta do the work and learn first from places like this blog first though!

#80 Leo Trollstoy
“I’ll give you a hint.

It’s not cuz u rent.

It’s called social skills. Your friends have it.”

AND

#79 Trevie on 05.26.15 at 9:29 pm

“I’m mid 30’s and rake in 60k a year and chicks still dig me. Less time at the office more time at the gym = more hair on the head and a chissled stomach.

125k a year means you eat,sleep and drink your job – no thank you!”

Bingo.

This guy is not getting girls because of the above, not because he does not own a house lol

#58 Drunk Actuary

“It’s 2015, wake up guys, it’s all about the look and the flash, that’s how people judge if you’re successful or not.”

This is really not meant to be rude or distasteful, but if you are constantly running into gold diggers like you suggest, you need to fake it just long enough to get what you want and then bail. Tell them you own the place :)

There really are tons of quality women out there. You have to learn to categorize early on. Like Freedom First said: you are the prize.

MF

#114 Karma on 05.26.15 at 11:07 pm

#15 Help on 05.26.15 at 6:50 pm
“I’m 27, male, and am earning roughly 175,000 per year. Hopefully double that in 5 years time. Live in Victoria and thinking about buying a home for $500,000. Same reason….houses are a chick magnet. Granite countertops.”

Until you get divorced and she keeps your house…

I have told my gf, whose family is very much poorer than mine, that if we are ever to own a home, we have to put the same amount in. From day one, I told her my money is for my retirement and potentially a future trust fund for my kids. My thinking is she wouldn’t respect the hard work if she marries into a house and didn’t contribute, financially-speaking, to creating a home together. Obviously, she would contribute in other ways, but having “skin in the game” makes people think differently.

That said, every culture is different and every family is different. But everyone needs to protect themselves from the worst scenario (I.e. Divorce), and being forthright is one way of setting the tone early. Any girl who doesn’t understand or like that requirement of mine isn’t worth more than a couple of months of dating.

#115 Smoking Man on 05.26.15 at 11:09 pm

#108 BS on 05.26.15 at 10:58 pm
101 Smoking Man:
Man your annoying…
Kettle, meet the pot.
….

God damn working class.

#116 Karma on 05.26.15 at 11:13 pm

#21 John on 05.26.15 at 7:08 pm
“You lost me on a 28 year old claiming to earn $125,000. Not believable, but a nice coffee table knick-knack.”

Yes, it’s believable. Uncommon though, but believable.

Analyst at an Investment Bank starts out at $85k or so nowadays at age 22-23. Definitely possible to move up $40k-$50k (pre-bonus) in 4-5 years.

#117 defence on 05.26.15 at 11:14 pm

#102 Hank

Lay off Mark.

Yup, his writing style is dry and pedantic at times, but that isn’t a reason to attack him. Maybe he is on the autism spectrum..

—-

Yup, not a lawyer.

#118 BG on 05.26.15 at 11:14 pm

Father Garth, I have seen the light.

I used to come here secretly hoping for a correction so that I could consider buying. I was sinful!

Now I don’t feel the need to come here as often, because I don’t care about a correction, because I don’t care about buying evil Real Estate.

Thank you.

#119 Millmech on 05.26.15 at 11:15 pm

Josh
Follow post #54 to the letter,best advice you can get from this blog tonight.

#120 Singonomics on 05.26.15 at 11:18 pm

I am sure Meatloaf had way more hot chicks than I can even imagine.

But he had to sing a hell of a lot for that.

#121 Mark on 05.26.15 at 11:18 pm

“Cops deserve more than the average worker but not four times.”

More than an average worker? Why? A cop needs a grade 12 education, to be of good character and to be of slightly above average physique. The average worker has a grade 12, and is of good character. The average person, over the long term, can afford the average house, and live an average Canadian lifestyle. There are a few occupational hazards associated with being a police officer, but many other occupations have occupational hazards as well.

If anything, there might be an argument made that cops (and public servants generally) be paid less than the average Canadian salary because their job security historically is quite rock solid, especially during recessions when their private sector counterparts are often subjected to compensation reductions. Which, even if they were paid “average wages” probably will still provide long-term average income in excess of the ‘average’ worker who probably will suffer an involuntary furlough or two throughout their career.

I don’t know much about municipal police forces, but I do know that the RCMP is in receipt of such a plurality of applicants to their training programs that they have the luxury of leaving qualified applicants in their training queue for lengthy periods. I have no fewer than 3 friends who applied, went through the lengthy RCMP security clearance process, only to be told of a multi-year wait before they would be called to duty — a period that is basically eternity for a young person (one went municipal, one into single motherhood, and the other pumped gas for years until he was finally called!). This implies that the human resources managers in the organization should be pushing compensation down across the board and reducing taxpayer support of their organization.

http://www.mypolice.ca/career_opportunities/recruitingFAQs.html#Q4

“Not many police organizations keep data on the number of actual applicants versus the number hired, but those in recruiting and training indicate that for every recruit/cadet position filled, approximately 15-20 applicants were unsuccessful.”

On that note, everyone wants to be ‘above average’, but unless there is a true labour market reason for such, government has no business paying more than market clearing rates for the people it hires. And if they truly are rejecting 15-20 applicants per hire, that points to severe surplus of candidates relative to positions available. If the economy is ever to recover and taxpayers receive value for money, government needs to take a leadership role in adhering to market principles in its employment practices.

How does this relate to RE? Well, like the overpaid civil servants, government has picked winners and losers in the capital markets. The FIRE industry has basically won the lottery by having $900B of otherwise risky mortgage debt “alchemized” into the equivalent of risk-free government bonds by the CMHC. Meanwhile, everyone who didn’t win the lottery, has to sacrifice to pay off the winners. The sacrifices are numerous — poor job growth because capital isn’t available to employers at the margin. Higher future taxes on account of fulfilling the guarantees. Higher risk premia for loans against non-housing asset classes. Even the relatively successful parts of the private sector suffer as they are in competition with the subsidized FIRE sector for many of the same resources. The net effect, especially of suppression of the private sector, is slower growth and a lower overall long-term standard of living.

#122 Melwin McLarble on 05.26.15 at 11:24 pm

Why do they call it “buying a house” when really it is a “rent-to-own.” Surely you don’t “own” a house when you have a mortgage. Also, if you buy a home as a single guy, it’s awkward with all that space, like wearing a shirt many sizes too big for you. Also it’d get rather lonely.

#123 Hank on 05.26.15 at 11:27 pm

Leo

That comment? ya.. that’s being a dick.

………………………………

There is a lot of debate on here about young vs old…

One thing that young people seem to have mastered is freely offering respect in spite of anonymity. Those who grew up with Google, Internet etc have an innate way when keyboarding and discussing ideas. You can alway tell it’s a young person by the way they keep their cool and don’t tear the other person down along with the idea that person may hold.

Those who’ve know Meatloaf as a teen seem ignorant of basic internet manners ie. “ad hominem.”

Bad Attitude (released in 1984) and Braver than We Are (release 2015 featuring “Who Needs Young”).. Rock on!! eh, Leo and SM?

Actually both of you seem really really old when judged by your internet manners.

Mark on the other hand has great internet manners. He’s obviously young, as well as kind, thoughtful and smart.

#124 Washed Up Lawyer on 05.26.15 at 11:36 pm

My final investment advice for the evening from Fort McMurray.

Fine sporting rifles will also whup the ass of the stock market. Maybe better than guitars.

Find a Winchester Model 70 (pre 1964) .270 calibre still in the box. If a single round has been put through it, the rifle has depreciated in value.

Controlled Round Feed. It can be shot upside down as opposed to a gravity feed.

Wake up Vancouver real estate investors. The right sporting rifles will out perform your Vancouver Specials.

#125 As Is Old Man on 05.26.15 at 11:47 pm

If you have to live in Toronto or Vancouver for that $128K, it amounts to poverty wages.

Attention software people commenting on this blog: Exactly what do you do for this money? Don’t be afraid to be technical – spell it out in detail – I can handle it :)

#126 vb on 05.26.15 at 11:48 pm

get a job in sales or sales engineering in an American tech company and be based in Canada…. you will earn 125k plus no problem.

Cheers!

#127 Carpe Diem on 05.26.15 at 11:51 pm

All,

125K seems reasonable if you aren’t stupid! Obviously,
Josh doesn’t need a cure for that!

He sure needs a cure for being horny stupid.

Josh:

#1 rule: Forget getting hitched up at your age.
#2 rule: In your 30’s – women, younger and older, you shall have and plenty!!!
#3 rule: apply the rule of /2>+7.

Hence,

40/2=20+7 = 27 ideal age of a woman to hitch up with.
60/2=30+7 = 37 ideal age for your second wife!

When I was 34 when I was hitched up with a wonderful 24 year old woman.

34/2 = 17+7=24 year old. Dead on!

I doubt I need a second wife ….

Some pointers:

1. Rent downtown. Hell, get a cool enough roommate and rent bigger and higher.
2. Join a sport, Karate or something. Increase your circle of friends.
3. Have parties and encourage your friends to bring friends .. then get numbers and invite those fiends to bring their fiend. Increase your circle of friends.
4. Supply the beer, munchies and rum. Hell, get a DJ sometimes. You can afford this.
5. Don’t be horny be happy.
6. They shall come to you – don’t waste time going after them.
7. Don’t fall for the first one that comes after you. Date but don’t commit.
8. Focus on what is important. Work, sports and then play.
9. The woman for you shall drop the bomb on you and you shall forgo parties, friends of friends and casual dating. You shall have had so much of that, you shall comply.

A townhouse in the middle of nowhere you will be missing out on life of a young single man!

#128 Vundo on 05.26.15 at 11:51 pm

“Why would anyone oppose a government plan allowing you to invest money and pay no tax?

That’s simple. Because they think it’s not for people like them, and might help rich folk get richer. Kinda like why Albertans voted NDP. ” -Garth

Well, yeah, why wouldn’t they think that? What use do people who make 1/3 of what Josh does and have tens of thousands in debt instead of assets have for a government plan to invest money (that they don’t have) and pay no tax (on the $0 they have invested)? Regardless of how or why they got into that mess, I think is is pretty easy to see why these people would resent Josh getting extra tax breaks while they have to repay debt with fully taxed dollars. Maybe these people made bad choices, maybe they had to go through tough times for reasons beyond their control (probably a combination of both). It doesn’t really matter, and maybe they aren’t right about TFSA’s at all. That still does not make it hard to understand why they feel the way they do, and why they would feel compelled to vote NDP. Easy to explain, if not justify.

And Josh: PLEASE, do not buy a house to impress women. The kind of women who are impressed by houses and cars is not the kind a decent guy should be looking for. Dogs, dance lessons, and coed rec league sports are all much cheaper and more likely to connect you to a woman looking for a partner rather than a meal ticket. And for goodness’ sake, DO NOT listen to #41 Trojan Horse. Remember how well that horse went for the Trojans? Stay away from misogynist blogs, keep decent friends, do fun/interesting stuff, rent a really nice place (pet friendly), KEEP THAT PLACE CLEAN, learn how to cook, and you will go much further than owning a townhouse will ever get you. Come back to Garth’s blog whenever you feel uncomfortably house-horny. It really does help.

#129 kommykim on 05.26.15 at 11:56 pm

RE: #59 Bytor the Snow Dog on 05.26.15 at 8:35 pm
Deleted without even a mention.

Sometimes posts just disappear on GF. It’s happened to me in the past with ordinary non-controversial posts. Garth now posts why he deletes, so it must be a random bug with the blog.

#130 PM on 05.26.15 at 11:57 pm

Love the blog but couple flaws in your logic.

To equal that, his cruddy townhouse would have to show an appreciation of 83%

This is misleading and the kind of stuff clickbait articles do. You state that the balanced portfolio ‘only’ has to grow at 7% a year but the house has to gain 83%. Yeah, over 14 years! You’re deliberately using different units to make your viewpoint seem stronger. The house has to gain 4% which is a close to historical norms over same time period as your balanced portfolio.

Also you use the caveat that rates will rise bringing up the mortgage price. Probably. Guess what? His rent won’t be $1250 in 14 years either. Definitely.

I’m not saying you’re wrong but your being disingenuous which makes it easy for the haters to hate.

#131 vb on 05.27.15 at 12:00 am

#86

ya I always see cops bored out of their minds guarding? construction sites. What a waste of tax payers $$. Why are police stationed at every two bit construction site? The TTC is the worst though its just about employment and zero about moving people around efficiently. Toronto = massive waste.

#132 IVoteIndependent on 05.27.15 at 12:06 am

Meatloaf had many wise words about real estate and the economy, such as:

I’m gonna hit the highway like a battering ram
On a silver-black phantom bike.
When the metal is hot, and the engine is hungry
And we’re all about to see the light.
Nothing ever grows in this rotting old hole,
And everything is stunted and lost.
And nothing really rocks, and nothing really rolls,
And nothing’s ever worth the cost.

#133 dilpas on 05.27.15 at 12:06 am

What did the Shampoo say to Meatloaf

I can see a pair o’ ur lice by the dash board lights….

Anyway Garth on a serious note, everyone agrees that RE is in a bubble state, and many people have asked how to “invest” in an inverse way against this…ie. play the other side…as there is no inverse RE ETF, what is the best way to play this…..seems like a can’t miss investment over a 5-10 year time frame

#134 surista on 05.27.15 at 12:11 am

#15 Help on 05.26.15 at 6:50 pm
I’m 27, male, and am earning roughly 175,000 per year. Hopefully double that in 5 years time. Live in Victoria and thinking about buying a home for $500,000. Same reason….houses are a chick magnet. Granite countertops.”

Have you considered Velcro countertops?

#135 omg the original on 05.27.15 at 12:13 am

If Josh want to buy the townhouse because it will make him a grown-up then he should buy it.

If that is how people want to spend their money who are we to tel them otherwise.

Besides, I think the correction when it comes to Canada will be so slow and gradual that nobody will even notice it.

Price appreciation will stall and inflation will just slowly eat away at the value of your house – 2% or 3% per year compounded really adds up after decade.

People will just wake up 20 years from now and realize that their house is worth about the same dollar amount as what they paid for it in 2015. But in real dollars it will be worth 30, 40, 50 or 60% less.

Kinda of like what has happened to the people who bought in south western Ontario in 1990.

#136 Waterloo Resident on 05.27.15 at 12:37 am

(Josh is 28, single, gainfully employed ($125,000 a year))

That’s odd, I know of 6 guys who are from age 26 to 28 and they all have full time jobs, working 40+ hours per week, yet all 6 of them are earning LESS than $25,000 per year, nowhere near $30,000 let alone $125,000.

I think Josh lied to you, he added a ‘1’ in front of his true salary.

#137 Made in BC on 05.27.15 at 12:43 am

#105 BS on 05.26.15 at 10:49 pm
65
Wow…is there ANYTHING you don’t know Mark? Heck in this case you know more than the guys working in our company that make……$140K a year, are under 30 and are Computer Software Engineers…..
Swami Mark…..do you wear one of those funny hats too?

Mark was dead on that a Software Engineer makes about half of $125K per year in Canada. Maybe your buddies are lying to you about their salary? If not they are very special.

The average pay for a Software Engineer is C$66,383 per year. Most people move on to other jobs if they have more than 20 years’ experience in this field. Experience has a moderate effect on income for this job.

http://www.payscale.com/research/CA/Job=Software_Engineer/Salary
+++++++++++++++++++++++++++++++++++++

In my office….where we specialize in security engineering for banks and other financial institutions…..its 140K per year. Just because there is some website with some number on it does not mean its correct.

Guess you have never heard of Stats Can Mr BS.

#138 MGTOW on 05.27.15 at 12:47 am

Josh is 28 and he makes $125,000 per year ?

According to this report, Josh is considered to be a very rare breed indeed, he’s in the top 3% as far as income goes:

http://www.universityaffairs.ca/opinion/margin-notes/where-are-you-on-the-income-ladder/

(“for the top 5%, it was $102,300; and for the top 1%, it was $191,100.”)

So really, its not fair to report Josh as the ‘AVERAGE’ guy here, when in fact he represents less than 3% of the population. We all know that it is not only the top 3% that are buying houses here, right?

#139 Made in BC on 05.27.15 at 12:47 am

#83 lee on 05.26.15 at 9:36 pm
28 year old police officers in Toronto who started at 19 are making almost $200000 a year inclusive of benefits and overtime. Check the sunshine list. Industrial electricians with ten years zare close to that too.
++++++++++++++++++++++++++++++++++++

Pretty obvious why Ontario is broke……

#140 TRT on 05.27.15 at 1:21 am

China has basically threatened the USA With war. I’m with the USA Garth. China is breaking international law. If we don’t draw a line in the sand here, my grandkids will be forced to learn Mandarin. Do you agree with me Garth?

#141 Brydle604 on 05.27.15 at 1:44 am

Josh this one is for you.
The Wife Hack
https://www.youtube.com/watch?v=lc3LUCu8-IU

#142 From Karratha to Calgary: lessons from the end of a resources boom on 05.27.15 at 2:20 am

“Median house prices in the Pilbara town of Karratha have plunged almost 34 per cent as the mining downturn prompts residents to leave.

Real Estate Institute of WA [Western Australia] data for the year to March shows the average price in Karratha has fallen to $450,000, compared to $650,000 in the March quarter last year.

“Not surprisingly, the [iron ore] mining downturn in the Pilbara has hit that region hard,” REIWA president David Airey said.

Port Hedland is also shedding residents, with house prices falling 11.4 per cent in the year to March to $753,000.”

===========

Complete article at: http://www.watoday.com.au/wa-news/pilbara-feels-housing-heat-as-mining-boom-ends-20150526-gh9y4v.html

#143 LH on 05.27.15 at 2:48 am

I cleared seven figures (annual wage slave pre-tax income) when I was 30. Easy in finance (trading)
Oh and I am 31 now. It’s a big world out there and I know many who made far more at even younger ages (usually finance or tech)

#144 Tony on 05.27.15 at 4:10 am

Re: #64 Thomas on 05.26.15 at 8:40 pm

Common sense could only mean the exact opposite will happen as deflation grips the world and spending dries up completely.

#145 Londoner on 05.27.15 at 5:13 am

What’s with all the nonsense comments today?

First of all, making $125k/yr @ 28 in Toronto is not all that uncommon. It’s not the average but it’s far from a rarity.

Secondly, what’s all this talk about how women are only interested in men who own houses? What, are you chasing divorcees with kids? How would they even know if you owned or rented unless they asked you. And if she’s asking, it’s probably better that you walk away. Plenty of other fish and all that. In fact, when it comes to attracting women, wealth probably falls behind confidence, looks and a sense of humour anyways.

Josh – if these are the types of women you’re finding in Toronto then come over to London. The women here don’t care about those sorts of things. Plus there’s more of them and they have nicer accents. And if you happen to work in finance then you can add another 50% to your salary.

#146 Ken Lovegrove on 05.27.15 at 5:44 am

The reality is that people Josh are good for the economy. They are out of debt and spending money. Most mortgage owners don’t. Their money is sucked into paying for and maintaining the house. When I lived in Vancouver it was a great place. But I met more so called ‘wealthy’ home owners than I enjoyed hot dinners that were as tight as a ducks ass when it came to spending money.

#147 gladiator on 05.27.15 at 5:51 am

In a homicide of a married person, the first suspect that the police will consider is the spouse.
This is all you need to know about marriage.

#148 BillyBob on 05.27.15 at 6:26 am

#112 Smoking Man on 05.26.15 at 11:07 pm
#102 Hank on 05.26.15 at 10:35 pm
All you Mark trollers….

Lay off Mark.

Yup, his writing style is dry and pedantic at times, but that isn’t a reason to attack him. Maybe he is on the autism spectrum.. or maybe he’s just a cool guy that doesn’t respond to trolling.

Anonymity doesn’t accede being a dick.
…..

Why not, I’m trying to inspire the bastard. He can never be a glorious world famous fiction writer with the dry chalk he thumbs on a white board..

I have an excuses, dyslexia. Like trying to swim up the niagara river with ten pound waights on my ankles.

But I keep trying. I’ll never give up. Writing needs to send a message that others can relate to, while being entertain-ing.

He don’t get that.. He’s a robot with no soul.

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

Maybe his robot-persona is just a fake one like your drunk author schtick?

Yet, we never hear him chirping the SM, so guess who looks ends up looking more the alpha?

Just sayin’…

Personally I read his stuff for occasional gems, (USDCAD theories aside), Smokin’s for entertainment value. It would be boring if we were all the same.

All I know is it’s hitting over 40C now in Dubai, glad to be getting out the next few days on a trip to the States and Europe.

#149 Julia on 05.27.15 at 6:31 am

#114 Karma
I have told my gf, whose family is very much poorer than mine, that if we are ever to own a home, we have to put the same amount in. From day one, I told her my money is for my retirement and potentially a future trust fund for my kids. My thinking is she wouldn’t respect the hard work if she marries into a house and didn’t contribute, financially-speaking, to creating a home together. Obviously, she would contribute in other ways, but having “skin in the game” makes people think differently.

“That said, every culture is different and every family is different. But everyone needs to protect themselves from the worst scenario (I.e. Divorce), and being forthright is one way of setting the tone early. Any girl who doesn’t understand or like that requirement of mine isn’t worth more than a couple of months of dating.”

Wow. What an attitude to set up a life together. You have to be on the same page and have to discuss finances but you have a seriously flawed view.
Are you going to make her pay a larger portion of the hydro bill for heating when she wants the thermostat higher in the winter too?

As a women who started her married life making less than her husband, had a maternity leave and now makes more than double than him, good luck with that.

#150 liquidincalgary on 05.27.15 at 6:34 am

Remember what Meatloaf said.

“I’d do any thing for love. But I won’t do that.”

he also said:

“praying for the end of time,
so i can end my time with you”

#151 Buckhorn Bum on 05.27.15 at 7:05 am

I’m 29 turning thirty. Electrician and work at one of the best places to work in Ontario. Part-time as a temp. 126,000 last year. You can even look it up… I lived here to make that. Yes people in their twenties do good if they get off their asses and try even just a little bit. My name is also Josh and I say Josh. Don’t do it. If you’re gonna buy anything buy waterfront and enjoy the views and tranquility. Not to mention you can rent it for more in a week than most people can rent their houses out for a month!! Stay liquid!! Layoff comming for me in June, good thing I have cash put away. Gonna be a gooooood summer…. Thanks again Gartho, you da man!!

#152 Bigrider on 05.27.15 at 7:06 am

#93 Italians love Real Estate.

The term is ” uppa , Uppa, UPPA ” ! ( you need to keep emphasizing and raising your voice as you slam the briscola cards on the table or flail the right hand in the air, fingers pinched)

The only thing that’s going to be going uppa is interest rates and then the RE prices, she’sa goin to go a downa Downa ,DOWNA”.

Much like your homemade wine, really bad times ahead for RE rubbers like you.

#153 Ron on 05.27.15 at 7:31 am

I can totally relate to Josh. Most people think that buying a house is better than renting. There are just too many financially illiterate young people in BC. I’m 29, making 100k/year, and still renting while growing my balanced portfolio.

#154 pBrasseur on 05.27.15 at 7:38 am

That’s simple. Because they think it’s not for people like them, and might help rich folk get richer. Kinda like why Albertans voted NDP. – Garth

That’s right, if you find that stealing your neighbour’s money is a bit risky then get the government to do it for you, the essence of socialism! Not what democracy was meant for and the biggest risk people who managed to accumulate financial assets will have to mitigate in coming years.

#155 fancy_pants on 05.27.15 at 7:44 am

Josh, it sounds like you want:

-high paying job
-no debt
-experience being a chick magnet

Well my friend, “two outta three ain’t bad”. But it sounds like your “monster is loose”. So you want to experience “paradise by the dashboard light”. “For crying out loud”, clearly you are “all revved up with no place to go.”

Well Josh, us warm blooded men hear you; “Heaven can wait” because “a kiss is a terrible thing to waste”. You want to feel “alive” and “it just won’t quit”.

So Josh, buy a house and come “stand in the storm”. It will fell great to be “home by now / no matter what”. Home ownership gets the chicks. Yep, “rock and roll dreams come through”.

#156 Mark on 05.27.15 at 7:59 am

Last Mark post till the weekend probably. Unless the BoC cuts in a couple hours, then it will be non-stop “I told you so“.

So what will it be? If they do cut, will the banks do the schtick of refusing to cut their administered rates again, even though BMO’s (better than expected) results this morning prove they’re not suffering meaningful spread compression? Could be an interesting day indeed.

#157 Italians love real estate on 05.27.15 at 8:21 am

Garth, what are your thoughts on the over paid , un worked and under educated teachers mafia?

I mean you were in government once. What gives with these extortionists ?

#158 lee on 05.27.15 at 8:25 am

#145, Londoner

London, Ontario or London, England.

#159 David Hawke on 05.27.15 at 8:33 am

Deleted without even a mention.

Is the wife moderating tonight? Again?

I deleted nothing, but that may now change. — Garth

Same thing happened last week to my comments on “The Wall”.

#160 crowdedelevatorfartz on 05.27.15 at 8:33 am

@#121 Mark
“the lengthy RCMP security clearance process, only to be told of a multi-year wait before they would be called to duty….”
++++++++++++++++++++++++++++++++++++

All that training and then they’re stuck on Traffic patrol writing speeding tickets….something a photo radar camera could do……another valiable use of taxpayer resources

Or they could become “double dippers” like Vancouvers Transit police that consist mostly of retired cops and draw a $100,000+ salary plus their pensions .
To write ticket violations that 90% of riders dont pay with zero repercusions.
Another valuable use of taxpayer resources
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&uact=8&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.langleytimes.com%2Fopinion%2F286385251.html%3Fmobile%3Dtrue&ei=-LhlVbb8A4i6ogSyzoOACA&usg=AFQjCNHPgvu7YRDrhSpQtshdoHyFH1cEMA

Time to replace them all with robots. Since most of them seem to act like robots anyway nobdy should notice.

#161 Loush on 05.27.15 at 8:35 am

$1250 rent for a decent place is not realistic. It is more like $1600. For sake of argument the difference now between rent and mortgage is $200/mo.

Even with the mortgage Josh can set money aside for TFSA, RRSP and other savings / investment accounts.

I live in the GTA, I am 29 and also debating whether to jump in on a mortgage or rent out.

Is this BUY BUY BUY engraved in my head? What’s going on here :\ Am I being a sheep and following the herd.

Some wise words please?

#162 Dreyfuss Hudson on 05.27.15 at 8:54 am

‘A survey days ago showed 31% of Canadians don’t agree with Ottawa’s budget move to virtually double the annual TFSA contribution limit, for example. ‘

Hey Garth – Isn’t that the same percentage of Canadians who usually vote NDP – or Liberal?

#163 Ret on 05.27.15 at 8:59 am

#69 “By the way , all you 28 year olds with 100 k plus salaries must all be teachers.”

A Globe and Mail article from December 2012 article that is probably about 2% lower than current teacher pay salaries.

Ten years to hit that max. number that is less than $100,000 and you need four years of university plus a year in teacher training and an additional number of courses all at their own expense.

http://www.theglobeandmail.com/news/national/education/anatomy-of-an-ontario-teachers-paycheque/article6015968/

Taking on teachers seem to be the only card that the Wynne government can play. It diverts attention from the huge scandals that just keep on coming. Ontario is in a financial mess but the new spending to buy votes never ends.

The latest, Hamilton is getting a Billion dollar LRT in the lower city over the next 5-15 years.

http://www.thespec.com/news-story/5645754-lrt-yes-construction-will-be-a-nightmare-but-it-will-bring-jobs/

#164 Colin on 05.27.15 at 9:15 am

I assume Josh is renting in a decent part of Toronto, while the townhouse is in the middle of nowhere. That’s what a lot of people fail to realize when they think “I can own for that kind of money”: it’s not apples to apples! Check how much it would be to own an equivalent property: same size, same neighborhood, same condition.

#165 Nuke on 05.27.15 at 9:36 am

Kids can make good money, my son is in that income bracket at 24. His big concern is that his 6-7 figure phantom stock option plan will tax him to death when it vests at 25. Also he’s 6’3″ good looking and has a fabulous girlfriend. He on the other hand has zero interest in buying a house. Loves his rent controlled top floor low rise apartment in a high end neighbourhood with an unobstructed view of the city @ 10% his take home.

#166 Cassandra Campisi on 05.27.15 at 9:45 am

I wish this article came out literally a week ago, then again, I’m not sure it would have changed much.

I am a 29 year old woman engaged to a 30 year old man. We have very different views on finances. I grew up on very little, graduated with $40,000 in debt and paid it off in two years. The fiancé grew up in a very wealthy family, with everything always paid for.

On Monday evening we purchased our first home, I say “we” loosely as I had very little say in the matter. We purchased the home with an interest-free mortgage from the Bank of Mom and Dad. The house price is $900,000. I pray to God that we see a soft landing, otherwise I will have to resist every urge to shout from the rooftops “I told you so”.

#167 Julia on 05.27.15 at 9:58 am

#161 Loush

“$1250 rent for a decent place is not realistic. It is more like $1600. For sake of argument the difference now between rent and mortgage is $200/mo.

Even with the mortgage Josh can set money aside for TFSA, RRSP and other savings / investment accounts.

I live in the GTA, I am 29 and also debating whether to jump in on a mortgage or rent out.

Is this BUY BUY BUY engraved in my head? What’s going on here :\ Am I being a sheep and following the herd.

Some wise words please?”

First mistake: Comparing rent to your mortgage payment alone. There is far more than the mortgage payment in owning a home.

#168 Jaref on 05.27.15 at 10:00 am

How are all these 20 somethings that garth profiles making so much money? I’m 35, work as an engineer for a large company in toronto, have over 10 yrs experience, and have yet to break 6 figures. What am I doing wrong?

#169 cramar on 05.27.15 at 10:25 am

Josh at 28 makes $125,000/year and has less than $60,000 in wealth. His goal should be to accumulate wealth over time, not buy a townhouse like the rest of his generation.

If a townhouse and no money will attract women, then he needs to raise his standards in women. Any woman with class would rather have a man who is just as money-savvy as she is.

#170 fancy_pants on 05.27.15 at 10:35 am

rates stay put

http://www.cbc.ca/news/business/bank-of-canada-stands-pat-keeps-interest-rate-at-0-75-1.3089177

#171 Alberta oilcrop on 05.27.15 at 10:40 am

It is delusional to think that finances are enough to attract and keep a woman. Women are really no different than men, just with different biology. The bigger question is would this guy even want/need a woman? If you feel you need a woman, likely you wont have one. That is just how it is. It is a game to acquire the privileges of female companionship. Timing needs to be correct and dont ever act needy. The trick is to have wants/needs but not let her know. The other reality is the fact that men can reproduce forever, women cannot. So is it wise for a man to invest time and money in a woman and be trapped forever? That is the reality, if you are in a serious relationship with a woman, it will cost you. Seeing many of the women I work with everyday, they may as well just be pretend men. Probably the best thing to do is to look, not touch, and definitely don’t engage unless you want to kiss your freedom goodbye.

#172 waiting on the westcoast on 05.27.15 at 11:06 am

To Mark…. Ahh the sound of silence…. ;-)

Mark – the CDN$ issue. I would suggest you just make a link to one of your previous arguments since they are all the same. It doesn’t seem to matter to you which variables are in play, you repeat the same argument over and over. A suggestion, you might want to spend some time arguing/considering why the CDN$ might fall to better understand some of the other forces that affect currency values.

I, too, find many of your other posts very informative. But you do seem to have a negative view on the possibility of others success. While I agree that at 28, making 125k is not normal… I also would not dismiss it out of hand.

I know of many people at a young age making very large bank. Some deserve it and some don’t… But that is for the market to decide….

#173 A river in Egypt on 05.27.15 at 11:12 am

Hmm….epic floods in Texas, out of control fires in Alberta leading to even more layoffs in the oilsands and further downward pressure on real estate there, heat fatalities across India, drought in California…..

And the hot season is only beginning.

Nope, climate change is just a lefty hoax. I read it on the internut, so it must be true.

Carry on as you were :)

#174 Leo Trollstoy on 05.27.15 at 11:16 am

How are all these 20 somethings that garth profiles making so much money? I’m 35, work as an engineer for a large company in toronto, have over 10 yrs experience, and have yet to break 6 figures. What am I doing wrong?

Likely poor networking and social skills, and complacency. In spades.

That’s what I’ve noticed from the highly-educated-but-poorly-paid individuals.

#175 Leo Trollstoy on 05.27.15 at 11:17 am

I pray to God that we see a soft landing, otherwise I will have to resist every urge to shout from the rooftops “I told you so”.

Now THAT is pretty passive aggressive.

Bodes well.

#176 Leo Trollstoy on 05.27.15 at 11:31 am

Mark on the other hand has great internet manners. He’s obviously young, as well as kind, thoughtful and smart.

At least you didn’t claim that his predictions are correct. Or that he knows how to make $. That’s telling. But true. Wrong on Toronto RE. Wrong on RE sales mix impact. Wrong on gold. Wrong on how banking works. Wrong on gold miners. Wrong on CAD/USD. Wrong on deflation.

But he he’s a thoughtful young man. That’s cool. It’s just too bad his information is always wrong. :(

#177 First Gen X'er on 05.27.15 at 11:34 am

While I cannot fault my Zeitgenossen’s priorities – or his desired timeline – this seems a very large investment to make based on anecdotal data. Before investing in the dating market’s equivalent of a get rich quick scheme, Josh might be better served to poll his happily-attached peers about the origins of their fruitful flirtations.

#178 Leo Trollstoy on 05.27.15 at 11:35 am

Last Mark post till the weekend probably. Unless the BoC cuts in a couple hours, then it will be non-stop “I told you so“.

Aaaaaaand wrong on interest rates.

Sad.

#179 Nora Lenderby on 05.27.15 at 11:42 am

#123 Hank on 05.26.15 at 11:27 pm
Leo
That comment? ya.. that’s being a dick.
………………………………

There is a lot of debate on here about young vs old…

One thing that young people seem to have mastered is freely offering respect in spite of anonymity. Those who grew up with Google, Internet etc have an innate way when keyboarding and discussing ideas. You can alway tell it’s a young person by the way they keep their cool and don’t tear the other person down along with the idea that person may hold.

Blimey, I can tell that you are not a female person on the internet! And that perhaps, old timer, you have never been outside the more respectable monitored forums?

From personal experience over the lifetime of the InterTubularities, I can tell you, old and young, people can behave very hatefully and it has driven many folk (often in my experience, women and girls) away.

However, the point of the thing is I believe our friend Mark was venting on Mr. Trollstoy’s wee joke about BH shares.

If someone really has 110 pieces of gold with a dead man on them, and that represents 20% of his wealth, he has maybe a million dollars in total. He should probably consider a professional to manage his loot (and his tax affairs) if he is uncertain about it – rather than asking a bunch of internet wiseacres, profound though our wisdom is.

#180 LLewelyn on 05.27.15 at 12:17 pm

Ah! Meatloaf

“It’s all coming back to me now!”

I remember when Canada cared about all of their citizens and was respected as a peacekeeper around the world.

Avarice is a very powerful drug and creates an addiction to money and material possessions that obscures reality.

I am concerned about a future where the majority of 28 years old Canadians may be unemployed not preoccupied by how they should spend their money.

Over the next 10 years all levels of government, Canadian banks, real estate companies, professional services etc. will shed thousands of jobs as new computer algorithms are developed to replace expensive humans. This is not
science fiction but a reality being camouflaged by avarice.

Henry Ford paid good wages to assure that his employees could by the cars he produced. Todays capitalists are concerned that a $15.00 per hour minimum wage might reduce the size of their annual bonus.

I am afraid we may have forgotten how an economy actual works. Without an increase in productivity we are doomed and inflating the prices of real estate or devoting over 20% of total government revenues to health care does not improve productivity.

“For me I think the hardest part
Is just watching while she falls apart
I try but we both know it’s true
There ain’t a damn thing I can do”

So prophetic was Meatloaf

#181 Turtle on 05.27.15 at 12:20 pm

Josh, you are 28 y.o…. keep in mind that townhouse is not going to be your last home. So choose wisely. Buy a place closer to main attractions and work. It is almost a geometry challenge – to find an ideal location.

When you have couple kids than you should be looking at school bus routes etc. But not now.

Being a chick magnet… That is crazy talk. Consider yourself lucky (very lucky!) if you have just ONE amasing woman by your side.

Dating many women is overrated.

#182 saskatoon on 05.27.15 at 12:20 pm

#173 A river in Egypt

yes!

never before has there been such a drastically changing climate!

lo and behold!

#183 waiting on the westcoast on 05.27.15 at 12:29 pm

#177 First Gen X’er on 05.27.15 at 11:34 am
“While I cannot fault my Zeitgenossen’s priorities – or his desired timeline – this seems a very large investment to make based on anecdotal data. Before investing in the dating market’s equivalent of a get rich quick scheme, Josh might be better served to poll his happily-attached peers about the origins of their fruitful flirtations.”

Or he can get tinder and log into plenty of fish… ;-)

#184 20something on 05.27.15 at 12:41 pm

Work at CN—They have 18-19-year-olds making 100-150k. All you need is high school.

#185 Andrew on 05.27.15 at 12:57 pm

If someone who makes $125000 a year (more than 90% of the population makes less than this) cannot afford a house something is wrong with the housing market. Only by the magic of no income verification subprime mortgages and renting out your basement as an apartment can you possibly afford an $800000-1000000 bubble priced house in the decent parts of the GTA. Or you can enjoy your 2 hours each way of DVP and 401 to Oshawa which is one of the few parts of the GTA where houses are still affordable.

#186 Retired Boomer - WI on 05.27.15 at 1:16 pm

Josh-

At 28 don’t buy anything in RE. Save & invest and have a good time, too. 28 is for playing hard & working hard.
Meet new people and enjoy the now – it will change!

Mark-

I like your posts. Usually well thought. Like me, you don’t get ’em all correct. None are right 100% of the time. Forget the Smokester’s comments, he isn’t right either.

You herd it through the grapevine.

#187 Toronto_CA on 05.27.15 at 1:18 pm

“#168 Jaref on 05.27.15 at 10:00 am
How are all these 20 somethings that garth profiles making so much money? I’m 35, work as an engineer for a large company in toronto, have over 10 yrs experience, and have yet to break 6 figures. What am I doing wrong?”

If you’re not paid enough where you are currently working, go get a job that pays more. If you like what you do and your boss and your co-workers/direct reports, I’d caution that earning more money but hating any of those things is not a good trade-off, however.

More money is not the goal of life, being happy is. And while the lack of money certainly makes people unhappy, earning another 15k a year (taxed at 40%+) is not going to increase your happiness in the mid-long run one bit.

As for Josh, I know lawyers at big firms who start out after articling in their late 20s at $100k; $125k is not lawyer/engineer/accountant at 28 unless it’s very unusual circumstances. But he could be a CFA in wholesale banking. They work crazy, insane hours and their bosses are universally assholes.

#188 Bottoms_Up on 05.27.15 at 1:25 pm

125k can be easily reached by someone with a good paying job that works a lot of overtime, or a day trader.

However day traders make that, until they don’t.

#189 Tom from Mississauga on 05.27.15 at 1:56 pm

What if she doesn’t leave…

#190 Shawn on 05.27.15 at 1:57 pm

Exchange Rate Fees and Spreads in brokerage accounts

There are reputed to be some investors on this blog. Even some self-directed investors (Though I believe Garth views that as akin to self-directed surgery).

Self-directed investors may notice that your brokerage is probably charging you around 1.5% or more to move money between Canadian and U.S. accounts. That’s 3% round trip. I am pretty sure the banks cost’s are a very tiny fraction of 3%, maybe in the order of 0.1%. Even accounting for fixed costs, profit and risks I suspect the round trip spread on this electronic transaction should be closer to 0.5% than 3.0%.

This is an unregulated fee. The banks seem to treat brokerage customers as captive customers in this regard and they all seem to charge high exchange fees spreads. (Conveniently, for the banks, it’s a somewhat hidden fee as well)

It makes it tough to rebalance when you lose 1.5% like that. Say you put 30% of your equity investments into U.S. stocks or ETFs and now that has grown to 45% due to U.S. market performance and our plunging dollar. If you want to rebalance you lose 1.5% of what you move back to Canada.

I know there are ways to avoid this by buying your U.S. ETF in Canadian using Norbert’s gambit but I found high fees and inconvenience on the gambit and I would like to pressure the banks to lower the spread fees when I move money.

Any thoughts on how to pressure the bank brokerages on this? Can we unleash the pressure of the mighty greaterfool blog?

Clients of a fee-based advisor pay no such charge. — Garth

#191 DisgustMadeMePost on 05.27.15 at 1:59 pm

So let’s see…

Carry the 2…

Ah yes, so 125,000 per year according to the Old Testament, means you shouldn’t be spending more than about $375,000 on your house.

Not sure a place for that money would impress much.

#192 Leo Trollstoy on 05.27.15 at 2:01 pm

At least you didn’t claim that Mark’s predictions are correct. Or that he knows how to make $. That’s telling. But true.

Wrong on Toronto RE. Wrong on RE sales mix impact. Wrong on gold. Wrong on how banking works. Wrong on gold miners. Wrong on CAD/USD. Wrong on deflation. Aaaaaand wrong on interest rates.

He’s a fantastic contrarian indicator! One of the best here. Bar none.

#193 TurnerNation on 05.27.15 at 2:02 pm

All 30 Dow stocks green. Nayers say?

#194 prairieboy43 on 05.27.15 at 2:03 pm

Wife is Engineer Manager. There Pay structure. EIT (engineer in training), start around 60-70k. PEng $100-$125. Then senior $150-240k.
Hired two young EIT out of Sherbrooke, Quebec. They are laughing all the way to the bank. Renting in Trailer Court $200.00/month. Parties hard, Enjoying life. They are both aware of your blog, Garth.

#195 Blacksheep on 05.27.15 at 2:25 pm

A river # 173,

“Nope, climate change is just a lefty hoax. I read it on the internut, so it must be true.”
———————————————–
The arrogance of man never ceases to amaze me.

Of course the climate is changing, we live on a thinly skinned ball of molten magma, being distorted by massive gravitational forces, on a cyclical basis.

Anyone expecting total stability of it’s environment is just kidding themselves.

http://news.harvard.edu/gazette/story/2012/01/of-orbits-and-ice-ages/

“Harvard Professor of Earth and Planetary Sciences Peter Huybers confirmed that slow changes in both the tilt and orientation of Earth’s spin axis combined to help determine when the major deglaciations of the past million years occurred.”

“These periods of deglaciation saw massive climate changes,” Huybers said. “Sea level increased by 130 meters, temperatures rose by about 5 degrees C, and atmospheric CO2 went from 180 to 280 parts per million. We ought to understand what caused these massive changes in past climate if we are to predict long-term changes in future climate with any confidence. And at least now we know with greater than 99 percent confidence that the interaction between obliquity and precession are among the factors that contribute to deglaciation.”

“Hmm….epic floods in Texas”
———————————————-
Stevie’s best, 32 years ago, pre global warming.

https://www.youtube.com/watch?v=lAvd3dv5jlE

Carbon foot print my ass. What a scam.

#196 My Wife Loves Garth on 05.27.15 at 2:33 pm

“I ain’t saying she’s a gold digger…but she ain’t messing with no broke…”
Kanye West

#197 Doug in London on 05.27.15 at 2:52 pm

So having a house will make him a chick magnet? I looked at the calendar on my computer, and it says the date isn’t April 1 so thus I can rule out it being an April Fools’ Day prank. Someone PLEASE tell me this is a joke! Anyone with a common sense IQ greater than their shoe size can see the GTA real estate market is a grossly overpriced bubble. Personally I wouldn’t want ANYTHING WHATSOEVER to do with a chick who is too stupid to see that. I want one with some common sense that can see it’s a bad time to buy real estate in the GTA, and understands there’s a mile long list (in fine print, that you can only see with a microscope) of better places to put your money right now. Any chick who can’t see that isn’t worth his or your time, period.

Only 28 years old and making 125 grand/year? Josh is laughing all the way to the bank and back again, many times over. He would be wise to follow Garth’s advice by continuing to rent and putting away a good portfolio while he can, especially in today’s volatile job market. He’ll have the last laugh when he’s got a good portfolio and meanwhile, the women who turned away from him are saddled with a huge ball and chain mortgage (worth more than the value of the house) that sucks the money and life energy out of them.

#198 Cdn Flier on 05.27.15 at 3:01 pm

Blacksheep: think of climate change as cancer. They both occur naturally, but the severity, speed and frequency are all affected by human behaviour. The fact that our activities affect climate change (and cancer) deosn’t make us arrogant- it makes us flawed.

#199 Westcdn on 05.27.15 at 3:04 pm

I see the Tories are trotting out a “voluntary enhancement” to the CPP. I have a few problems with this idea. It was designed to be a supplement to retirement income – not the end all and be all. I don’t think employers should be required to match voluntary contributions by an employee. Defined benefit pension plans are integrated with the CPP meaning your pension benefit consists of the employer pension plus CPP (see bridge payment in a defined pension).

Unlike a RRSP contribution which is 100% deductible against taxable income, you only get a 15% tax credit for your CPP contributions. Then you have to consider the CPP benefits you receive are taxed at the highest marginal tax rate rates that apply to you. If you are a high income person, from a tax perspective, CPP is a lousy investment despite being well run.

IMO, if you are of income less than $50,000 cdn annual income then CPP is a good thing even with a defined benefit package. If you are a high income person, I would recommend RSP contributions then making TFSA contributions from the tax refund. Eventually you will have to pay tax on your RSP but consider it is only taxable when you make withdrawals.

Circumstances vary from person to person but a little planning goes a lot way when it comes to tax efficiency. BTW, I made good capital gains in my RRSP and I am having a horrible time minimizing my income taxes. The TSFA arrived too late for me.

I am waiting for the end of July to see how RE in Calgary will fare. To me, it depends on how many jobless Calgarians want to stay and ride out the recession. After all, debt is cheap and you don’t have to travel or eat out or have children – my 2 cents worth.

#200 Renter's Revenge! on 05.27.15 at 3:16 pm

Oddly enough, I’m not seeing any articles on Canadian news sites with titles such as:

“The secret lives of balanced portfolio holders” or

“Canadian rich getting richer thanks to their bank shares”

#201 LL on 05.27.15 at 3:38 pm

#58 DRUNK ACTUARY

…”Garth. I’m new here. Never heard your comments on having a % of one’s assets in gold, or silver. I inherited 110 Krugerrands in 2002 and they’ve gone up in price and they now represent about 20% of my net worth.If I sell them would I have to pay cap gains? I don’t know what my Grandad paid for them. Or ,should I just hold them? Do any posters here have any suggestions what I should do with them? thanks a lot”….

Wait for a “SMART” girl!
When your friends will be foreclosure, that kind of chick will run!

#202 LL on 05.27.15 at 3:41 pm

28 years old here too. 105 000 per year. I can tell you for sure some women look down at me cause I rent and dont have a nice car.

Two of my friends have astronmic debt, houses, nice cars , motos and tattoos, pretty much have women lining up to date them.

It’s 2015, wake up guys, it’s all about the look and the flash, that’s how people judge if you’re successful or not.

A 30 years old with 150K in liquid assets and renting will be looked down at. A 30 years old with 500K in debt but a huge house and car will be a successful god. That’s the way it is.

Wait for a “SMART” girl!
When your friends will be foreclosure, that kind of chick will run!

(Ooopss..my earlier comment was addressed to the wrong guy. Here is the good one).

#203 young & foolish on 05.27.15 at 3:49 pm

“I assume Josh is renting in a decent part of Toronto ….”

Yup, $1250 will get you a decent basement apartment in downtown Toronto.

#204 LTL_FTC on 05.27.15 at 3:49 pm

Irony: Maybe Josh is a successful realtor

#205 Vamanos Pest on 05.27.15 at 3:51 pm

#166 Cassandra

You didn’t have much say with your fiancé in purchasing a 900k home?!

RED FLAG!!!

#206 JOHN on 05.27.15 at 3:52 pm

65

You are a retard. The site that you’ve provided is not accurate.

Dentists only make 101k?

Are you kidding me? I am a dentist, and I’ve been working for 5 years now. I am pulling over 200k.

#207 Made in BC on 05.27.15 at 4:14 pm

#173 A river in Egypt on 05.27.15 at 11:12 am
Hmm….epic floods in Texas, out of control fires in Alberta leading to even more layoffs in the oilsands and further downward pressure on real estate there, heat fatalities across India, drought in California…..

And the hot season is only beginning.

Nope, climate change is just a lefty hoax. I read it on the internut, so it must be true.

Carry on as you were :)
++++++++++++++++++++++++++++++++++++

While its sad for the families, 1100 dead in India is by no means a catastrophie in a country of 1.25 billion people.

Also its funny how you never see the RECORD COLD headlines over the last couple years. You never read how there is RECORD SEA ICE in arctic. You never see headlines about the GREAT LAKES FREEZING COMPLETELY OVER….

Man Made Global Warming is a scam. Climate change has been happening for 4 billion years.

#208 young & foolish on 05.27.15 at 4:15 pm

“Without an increase in productivity we are doomed ….”

Haha, sure … we become more “productive” and keep pushing those profits upstairs to the shareholders. As current employment trends, not to mention debt levels suggest, a more sustainable redistribution model may be required soon!

#209 rosie "moving forward" in the knowledge that, "this won't end well" on 05.27.15 at 4:33 pm

Looks like it might be a good time to sell. Nah, it’s probably different this time.

http://www.theglobeandmail.com/report-on-business/rob-commentary/is-it-the-right-time-to-sell-your-house-look-at-the-historical-data/article24622541/

#210 Ray Vasquez on 05.27.15 at 4:38 pm

Bond yields are dropping again.They are down at least 20 to 25 basis points in the last 3 weeks or so.

Don’t be surprised that we can go back to February-2015 lows of a 1.83% 30 year Canada bond yield not mention 5, 10, 20 year yields too.

#211 Jerry Beck on 05.27.15 at 4:38 pm

#194 BlackS….The scam grew out of the need to secure funding for another scam..sustainable development. The Brundtland Document ( the then PM of Norway) was the master plan to tax the west and send the money to the third world. It obvious at the time that the energy industry was an easy target.

Pierre Trudeau was the second signatory to the agreement…and promptly began gutting industry to send our factories to China. China was a starving mess at the time…..they were supposed to make stuff cheap and send the intellectual jobs back to us…. in a nice revolving economy that favored us.

What we got in return is a China that said “Screw you…we’re keeping it all”.

Climate change is just the newest name change for carbon tax…global cooling etc. In the past our planet has been a water ball…an ice ball…a lava ball….and a green ball coughing up monsters. An attempt to stabilize the planets long term weather so that a predictable pattern could be locked down for the vacation schedule ten years from now is pure folly.

#212 BlackDog on 05.27.15 at 4:39 pm

@AlbertaOilCrap #171 re: ” The other reality is the fact that men can reproduce forever, women cannot. So is it wise for a man to invest time and money in a woman and be trapped forever? ”

Thank god for menopause! I’m not sure what the benefit is in being able to reproduce forever, but if it makes you happy as an old man go for it – it sure doesn’t make you wise though and can well leave you a very trapped old man. Note, that being unable to reproduce does not equate with being unable to fornicate. ;)

#213 ITinYYC on 05.27.15 at 4:42 pm

Really enjoying all the commentators losing their minds when faced with the concept of a 28 year old making 125k/yr.

Anything professional or government should be putting you in the six figures with 6-8 years of experience. This isn’t 1990. In fact I would argue that 100 is the new 60.

I do pretty bog standard IT Project work and broke 100k @ 27. Now 30 making 140~
It’s easy if you are a contractor (which most are).
Hell, most staff help desk automatons make ~60k nowadays.

But here in Cowtown, the real cheddar is in engineering, geology etc. Many under 30’s in this field making six figure salaries with five figure bonuses (well…maybe not as many this year :P)

Don’t even get me started on the rig kids….

#214 Vanecdotal on 05.27.15 at 4:46 pm

Josh, don’t head for the burbs prematurely (for these reasons), it’s a major lifestyle shift!… and also likely financially unwise. You’re doing better than many of your peers already, you’d be wise to stick to your game plan. (Don’t drink the kool-aid)!

Keep renting, you can always upgrade to an even better apt. in your preferred urban area for a little bit more and still $ave. When datin’ & asked if you own or rent, tell the truth. How the person reacts is a great litmus test of THEIR financial literacy. Helps weed out the “chaff” and avoid future problems if at some point you want to pick a partner to stick around. Hint: if the ladies you’re attracting only care about whether you own a home, RUN AWAY…. and ponder why you’re only attracting goldiggers? There’s plenty of hot single successful ladies out there that would be decidedly unimpressed by ownership of a cornflake “palace” in some far flung exurb.

Unless of course everyone’s just having some no-strings fun… Then who cares?! A pimpin’ (rented) pad can “close” same as if you owned it. ;)

Btw this same advice also applies to the financially successful young LADIES out there. Booya!

#215 SWL1976 on 05.27.15 at 4:52 pm

194 Blacksheep

Carbon foot print my ass. What a scam.

Well there is no doubt that the carbon tax is a complete scam, but to imply humans have had no cause and effect here on the environment is a tad bit ignorant.

Yes the climate cahnges, but unless there is a catastrophic event, change happens over hundreds and thousands of years. Not decades or seasons.

30cm of rain in 6hrs is the direct result of humans and our thirst for control over an environment we cannot control.

We are the tipping point and when disgruntled climate meets…

Avarice is a very powerful drug and creates an addiction to money and material possessions that obscures reality. .

We’re in for a wild ride

Well put…

#180 LLewelyn

#216 active on 05.27.15 at 5:05 pm

Age: 30
Salary: 68K/yr
Net Worth: $185K
No debts/do not own real estate

#217 Russ L on 05.27.15 at 5:08 pm

Some Humour on 05.26.15 at 10:08 pm
Remember what Meatloaf said.
“Ain’t no doubt about it, we were doubly blessed.
Because we were barely 17 and we were barely dressed?”

I was just borned when dat song came out! ;)
++++++++++++++++++++++++++++

And your Mom was 17 or 18 years old?

Cheers, Russ

#218 TRT on 05.27.15 at 5:20 pm

U.S. Can’t raise rates because U.S. Dollar already rocketing higher. All talk. Agree Garth?

When is the time to go head on into the Euro?…..

#219 jemjem on 05.27.15 at 5:30 pm

I surprised at how many ppl on this blog think a 28 yo in Toronto can’t possibly make $125k. I personally know many in digital media and marketing. I even know one one who is only a lowly service tech. Life is what you make of it. The right industry at the right time with a ton of hard work and a little luck. Grow up and stop blaming society because you were not able to do better in life. You can make money if you’re ambitious and smart.

#220 Nemesis on 05.27.15 at 5:37 pm

#EarthyInsightsForJoshFromKitt…

https://youtu.be/UeRSqekHh1g

#221 MF on 05.27.15 at 5:53 pm

#219 jemjem

“Do better?”

“Grow up and don’t blame society?”

#206 JOHN

My brother is a new dentist, he aint making 200k that’s for sure.

#213 ITinYYC

Lol 60k for a help desk?

Every time Garth posts about someone making more than the average, you get people who point out that truth.

Then you get these guys who come on here to boast, which is even worse.

Someone give them a medal please.

Josh read
#187 Toronto_CA

Sage advice.

MF

#222 Mike S on 05.27.15 at 5:53 pm

“Buy the townhouse Josh and consider taking in a room mate. Get that sucker paid down fast.

The minute you have some equity consider buying another and Renting it out, top and bottom floors.

Lather , rinse and repeat.

It is the Italian Canadian recipe for wealth and it works”

Sure when you make 125K a year it is really smart to to rent out a house and pay north of 43% (marginal tax) on any income from it …

#223 Blacksheep on 05.27.15 at 6:07 pm

Cdn # 198,

“but the severity, speed and frequency are all affected by human behaviour.”

SWL # 215,

“Yes the climate cahnges, but unless there is a catastrophic event, change happens over hundreds and thousands of years. Not decades or seasons.”
—————————————–
Guys, read up on the Earths axial precession.

It’s axis completes a cycle every 26000 years, or 1° every 72 years. Pretty damn fast.

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

You’ve been had.

#224 cramar on 05.27.15 at 6:37 pm

From Thomas J. Stanley’s The Millionaire Next Door:

Household Income x Age /10 = Your Desired Household Net Worth

I.E. $100,000 x 30 years old/10 = $300k

(Of course, Stanley wrote the book 20 years ago, so one could argue that this figure is too low for 2015.)

Evaluate yourself accordingly.

#225 exchange of ideas on 05.27.15 at 6:47 pm

Somewhere, there is a brief uptick in placard and fineliner sales. A cyclist reunites with her bike. A bird flies above the city and an old man pauses to watch a child play. A stainless appliance whirrs as a realtor drives to meet a client, and smiles, “This is a good time to be alive.” How does one measure success? In the wealth we acquire or the connections we make? Do we build fences or open a gate? Of all the universes, epochs and lifetimes, we find ourselves together in this one. Greetings! It’s a pleasure to know ya.

#226 Oot der Hoos on 05.27.15 at 6:55 pm

Never choose redistribution and minimum wage laws to solve our problems. Three wrongs do not make a right. The third and primary wrong is the inflation of money supply and our socialism.

Choose liberty and free markets and do not be jealous of the gains of others.

It does not take much money to be happy as #180 LLewelyn said. So why, LLewelyn and Y&F, do you desire to take from them?

There are some economic fallacies in that 180 message. Study Austrian economics. I gave links.

I care about people. So I studied economics to find Christian answers, which are not based on the satanist, Karl Marx and socialism. Come away from that propaganda and learn.

http://www.crossroad.to/Quotes/communism/marx.htm

…The overriding reason for Marx’s conversion to Communism appears clearly in a letter of his friend Georg Jung to Ruge. It is not the emancipation of the proletariat, nor the establishing of a better social order. Jung writes: “If Marx, Bruno Bauer and Feuerbach associate to found a theological-political review, God would do well to surround himself with all his angels and indulge in self-pity, for these three will certainly drive Him out of heaven…” [p.24]

The man who convinced Engels to become a Communist was the same Moses Hess who had convinced Marx before. Hess writes after he met Engels in Cologne, “He parted from me as an over-zealous Communist. This is how I produce ravages.“ To produce ravages — was this Hess’s supreme purpose in life? It is Lucifer’s, too.”[p.28]

#227 SWL1976 on 05.27.15 at 7:13 pm

#223 Blacksheep

You’ve been had.

I understand the climate changes naturally. Duh!!!

Now let’s use a litmus test on you to see where you are at on the subject of Geoengineering?

Is in happening

Yes or No?

#228 First Gen X'er on 05.28.15 at 7:30 am

#224 Cramer

Even discounting student loans, that seems completely unfeasible when one first enters the workforce. Does this tome describe what a reasonable timeline is to get on track?