The hole

SPEED modified

A little over 9,000 people in Canada retire every week. Yes, these are boomers, and they join approximately 10,000 aging American hippies who are going through the same life change each day. This is a massive event, since the wrinklies represent about a third of our population.

Lots of them are screwed, of course (more on that in a moment), but logic tells us they might be way better off than their Millennial spawn who now outnumber them. Their retirement event, in about four decades, should be a mother.

The reason’s simple. Boomers lived through years of inflation and economic expansion, while today we’re borderline deflationary and in a financial funk. For people like me, buying a house that cost three times annual income was a good strategy, even when rates were off the chart. Today kids who overreach to buy property at six or ten times income, with monstrous debt, are taking extreme risk, no matter how cheap money is. Given that real estate will not hold present values, Millennials trying to turn into their parents will probably blow up.

How they don’t see that is weird. Real estate’s a wealth trap. Why any 25-year-old would want to fund the retirement of a Boomer by taking over their $1 million house, or walk into 25 years of payments to live in a condo they could rent for less is inconsistent with Millennials being so smart. What, exactly, did they teach you in all those years at uni?

Anyway, now we have a selfie prime minister who also made himself minister of youth and should understand this stuff. So what did the budget do yesterday to try and guide us towards a better future?

Well, the dole handed out to poorer retired people, called the GIS, was increased by 10%. This amounts to about $8,000 a year (in total) for those below the poverty line. Second, the freebie money every retired person receives, called the OAS (Old Age Security), which was scheduled to start being available at age 67 in a few years, has been restored to age 65. That’s $570 a month, which is reduced the more you earn. And third, as you know, the Liberals chopped the amount you can put into a TFSA every year by almost half. Thus everyone will have a harder time amassing savings that will supplement their retirements, without shrinking their OAS or GIS payments.

Meanwhile plans to revamp and enhance the CPP (which pays an average of $600 a month in retirement) have fallen apart, and it’s quite unlikely reform is coming. Even if it did, this would mean substantially higher premiums paid by every Millennial for the next few decades to gain more after they finish work.

None of this would impress me if I were thirty. There’s no plan here other than to toss a little more money at people who are in a spot you’d never want to trade for. This government’s thinking just like every one which went before. It encourages young people to dive into housing debt – with cheap rates, the homebuyers plan, CMHC insurance, low dowpayments and tax incentives – and yet fails to recognize in a low-growth, low-rate, low-jobs, low-yield world that’s a recipe for enslavement and likely ruin. Too bad. And, to boot, the kids get $100 billion in new federal debt over the next four years – none of which Boomers will be repaying.

Most of us don’t understand what’s coming. Of the nine thousand people a week now retiring, over 84% (according to a BeeMo survey) will ”rely heavily” on CPP cheques to get by. How sad is that, when the annual total averages under $7,500? At least the boomers have real estate to sell – which about half of them plan to over the next few years.

In the US, not much better, although social security payments are higher. About half (48%) of people haven’t even figured out what they’ll need to live on in retirement. Those who have think they’ll need about half a million dollars. But 94% don’t have it, and probably never will.

So what? Well, this massive Boomer retirement thing is scheduled to go on for another decade, at which time there’ll be more thirsty-underwear-wearing, scooter-driving, sex-pill-popping, irritating old farts than at any other time in human history. Not a real boon for the economy, as they suck off health care, dump their houses and drive too slowly in front of you. If I were a Millennial, I’d understand that no other generation has ever faced this kind of obstacle before. I’d see that houses could become a major source of financial deflation, growth could be flat for decades, and the last thing I’d ever want is more debt.

I’d also be looking for leaders who get it. Hard to see how the middle class can be saved by spending money building bridges, taxing at 50% those who achieve good incomes, neutering the best wealth-building vehicles families have, plunging the country into another decade of borrowing, guaranteeing higher taxes or being incessantly encouraged to sink into real estate debt.

But, of course, I’m no hipster. Just a guy who thinks you need to be careful. Voting is easy. Investing is hard. Only one of those really works.

249 comments ↓

#1 Setting the Record Straight on 03.23.16 at 6:13 pm

Yesterday Hope and ruin replied to my post follows
#207 hope & ruin on 03.23.16 at 9:52 am
#178 Setting the Record Straight on 03.23.16 at 1:19 am

Really !
To you and other offended posters, a perusal of some of the economic history literature on England concerning why the economic revolution ( continuous per capita income growth) started in England might be enlightening.
_____________________________

do you mean the industrial revolution? invention of the steam engine, colonialism, property rights, banking institutions, capital markets.

You want to add eugenics to that list?

not offended. please forward some reading material

&&&&&&&&&&

In response to my affirmative reply that I would post material, hope and ruin then he sneers:

#253 hope & ruin on 03.23.16 at 2:39 pm
#230 Setting the Record Straight on 03.23.16 at 11:47 am
@207
I will provide some material in today’s forthcoming blog.
________________________________

yikes. not sure that these will get past the filter. Here’s a quick rule of thumb: if it could be found on a kkk bookshelf or used for recruitment purposes. keep it to yourself.

&&&&&&&&&&&

Is this a corollary of Godwin’s Law? If not Hitler then a Grand Wizard?

I refer to the book “A Farewell to Alms” authored by Gregory Clark, at the time of publication the Chair of the Economics Department , University of California ,Davis.

The book was reviewed favourably in the New York Times, the New York Times Book Review , the Financial Times and the Daily Telegraph.

Perhaps you might like to send Mr. Clark some white robes and hoods?

Chapter 1 page 10&11 he writes

Why an Industrial Revolution in England…….. The answer hazarded here is that England’s advantages were not coal , not colonies, not the Protestant Reformation, not the Enlightenment, but the accidents of institutional stability and demography: in particular the extraordinary stability of England back to at least 1200, the slow growth of the English population between 1300 and 1760 , and the extraordinary fecundity of the rich and economically successful. The embedding of bourgeois values into the culture, and perhaps even the genetics, was for these reasons the most advanced in England.”

&&&&&&&&

Now ‘hope and ruin’ , you are certainly ruined on this blog. You should slither away in shame!

For current discussions of human bio diversity others might also try

Hbd chick or JayMan’s Blog

#2 Jimmy on 03.23.16 at 6:16 pm

First!!!

#3 gladiator on 03.23.16 at 6:20 pm

A great post.

Saving it in my collection of things to read for my kids when they grow up.

What you wrote today will be a visionary message 10-15 years from now, regardless of how hard it is to imagine what is coming when you look at hockey-stick RE price charts in TO and Van nowadays.

#4 ex·ag·ger·a·tion on 03.23.16 at 6:21 pm

“And third, as you know, the Liberals chopped the amount you can put into a TFSA every year by almost half. Thus everyone will have a harder time amassing savings that will supplement their retirements”

The maximum size of a special savings account means nothing to someone who is going into debt daily.

Maybe you don’t know what the word “thus” means?

#5 Damifino on 03.23.16 at 6:23 pm

“What, exactly, did they teach you in all those years at uni?”

That real estate always goes up. Q.E.D

#6 ulsterman on 03.23.16 at 6:25 pm

“How they don’t see that is weird. Real estate’s a wealth trap. Why any 25-year-old would want to fund the retirement of a Boomer by taking over their $1 million house”

Because they are told by their parents, friends, the nice lady at the bank, and most media that the house will eventually be worth $2m and it will fund their retirement when they’ve paid it off. Oh, and if they don’t buy now they’ll be priced out forever, which in the case of the Lower mainland has proven to be very wise advice.

#7 April. on 03.23.16 at 6:30 pm

While I think your politics are right out of Dungeons and Dragons (very feudal), you always have the numbers. 9000 of us retiring every week, eh? How ’bout that.

A thing left out of those scary numbers is that a lot of us are also dying (Bowie, Rickman, etc etc – lots of 60+ people gone already – okay Keith Richards will last forever – but still). We’re not going to last as long as our parents; Prince Charles will pop his clogs before his Mum.

So. How many wrinklies are dropping of the charts every week?

#8 ex·ag·ger·a·tion on 03.23.16 at 6:31 pm

“But, of course, I’m no hipster. Just a guy who thinks you need to be careful. Voting is easy. Investing is hard. Only one of those really works.”

You’re advocating some kind of dictatorship?

Ahhh, no, you’d prefer a Plutocracy! Mmm, good idea.

The only time voting works is when you’re kicking out the utterly corrupt leaches in power; this must be repeated every few years.

Thus Western Democracy edges out all other forms of governance, while still being infested by essentially useless politicians.

#9 I'm stupid on 03.23.16 at 6:33 pm

I just got back from Hawaii, way too far and expensive for what it is, but that’s another story. The wife and I went to a timeshare presentation for the free gift. I’ve never gone before so my curiosity got the better of me. I walked out without buying anything but I realized it’s very similar to housing in yvr and gta. A bunch of people singing the same song about how great it is until you do the math and realize it’s not.

#10 Frank on 03.23.16 at 6:33 pm

Now this is what I come here for.

Not class warfare, just sombre rants about the state of personal finance.

Don’t worry though, usually an unforseen technical advancement drives a period of rapid expansion. The mass production of automobiles post war and through the 20s, the transistor and computers through the late 80s and 90s. Maybe it’s drones, self-driving cars or something we don’t even know about yet but the next boom of growth could be around the corner. Or maybe it’s 50 years away, who knows. Point is to use your resources, whether small or large to invest smartly and be ready to seize opportunity when it arises. If you’re house poor for the next 25 years that won’t happen.

#11 waiting on the westcoast on 03.23.16 at 6:36 pm

It’s all about the payments….

The vast majority of people are not even thinking about how much debt they are taking on.

It’s like the universe… you don’t really think about how big it is. Just put it out of mind.

On another vein for the Trump/SM supporters. Check out all the rebuttals to fallacies that Trump is espousing about the US economy, free trade, etc.

http://www.cnbc.com/2016/03/14/heres-what-trump-gets-wrong-commentary.html

#12 TRUMP FOR PM on 03.23.16 at 6:37 pm

THAT’S WHY TRUMP NEEDS IN.

WE NEED A WORLD LEADER WITH A BUSINESS-ORIENTED MENTALITY.

How can a bunch of political majors and lawyers have the entrepreneurial know-how to run a country’s bank account. That’s what’s been in the White House for the pass 100 years and whatever USA does the Canadian Government follows.

Maybe if America upgrades their president from a groupie politician to a Business minded individual then we might wake up.

Until then we give our tax dollars (half our pay cheques) to politicians who don’t know a damn thing about a budget (personal or business).

#13 tundra pete on 03.23.16 at 6:41 pm

I am thankful I cashed out of the market a few years ago and paid cash for a shack that houses and feeds me and lets me stare at the wildlife everyday. The organic garden is better than precious metals.

I am also thankful for the contributors to my not too distant future OAS which should pay for my depends and Budweiser. Oh ya and my internet so I can come to this pathetic blog.

#14 pathcontrolmonk on 03.23.16 at 6:41 pm

#1 Setting the Record Straight

What are you on about? If you dont have anything pithy to say about HAM, T2, or buxom Amazonians, shut your piehole.

#15 sockeye sam on 03.23.16 at 6:45 pm

It won’t be a Canadian millennial that funds my retirement. It will be some one from China, over here on the bent side of Van. Mayor Moon beam, “TEAR DOWN THAT HOUSE”.

#16 RandyRod on 03.23.16 at 6:48 pm

Meh, I’m not too worried about the government. I would prefer more TFSA room and agree that they should have left it as is. But all in all they will be much better for our country than the Harper gang ever was. Those guys spent our money on advertising and gutted every economic sector except oil, which proceeded to tank and bring our dollar with it. As for myself, I’ll take care of that, regardless of TFSA room, infrastructure spending or income splitting. If I pay taxes I want them to go to things that are needed (bridges, getting poor people off the streets, etc) rather than the crap the cons were pulling.

#17 memories on 03.23.16 at 6:49 pm

#2 TRUMP FOR PM

How can a bunch of political majors and lawyers have the entrepreneurial know-how to run a country’s bank account.

Maybe if America upgrades their president from a groupie politician to a Business minded individual then we might wake up.

Until then we give our tax dollars (half our pay cheques) to politicians who don’t know a damn thing about a budget (personal or business).

You must have early Alzheimer that needs to be checked out.

Canada was governed by an economist PM in the past two terms. Must not have done much if you didn’t notice.

#18 Nemesis on 03.23.16 at 6:49 pm

#SpeakingOfHoles…

[SCMP] – Study reveals awfulness of Canadian investor immigration; income tax averages C$1,400 per millionaire: British Columbia ends up housing ten times more rich newcomers than Quebec – but Quebec gets ten times more of their ‘investment’ than BC

…”That’s just one finding of a Federal government evaluation of the Chinese-dominated investor schemes, quietly published in October 2014…

…A skinny internal report on immigrant employment earnings, dating from 2012, gave a hint of what many suspected about the investor schemes, whose only real requirement of applicants was a willingness to hand over a pile of cash (latterly, C$800,000) as a five-year loan to Canada. But the latest data is depressingly comprehensive.

Among other things it reveals that 10 years after admission, the average annual income tax paid by millionaire migrants’ primary breadwinners was C$1,400. No, that isn’t missing a zero. The true average is even lower – since one third did not file tax returns.

Compare that to the C$10,900 paid by skilled worker immigrants, or the C$7,500 paid by Canadians on average.”…

http://www.scmp.com/comment/blogs/article/1929324/study-reveals-awfulness-canadian-investor-immigration-income-tax

#19 Canadian on 03.23.16 at 6:50 pm

Smart money (and talent) is leaving the country, Canada’s future is a lot like Finland’s today.

http://www.telegraph.co.uk/finance/economics/11993040/Finland-emerges-as-the-new-sick-man-of-Europe-as-euros-worst-performing-economy.html

#20 45north on 03.23.16 at 6:57 pm

And, to boot, the kids get $100 billion in new federal debt over the next four years – none of which Boomers will be repaying.

that’s what I thought. I never asked the Liberal Government to borrow money.

For people like me, buying a house that cost three times annual income was a good strategy, even when rates were off the chart. Today kids who overreach to buy property at six or ten times income, with monstrous debt, are taking extreme risk, no matter how cheap money is.

In 1973, I bought a house in Ottawa. It cost exactly three times my salary. My own kids, I tell them not to buy.

#21 not 1st on 03.23.16 at 6:57 pm

Garth, these were Canadas top exports last year;

Oil: US$77.8 billion (19% of total exports)
Vehicles: $60 billion (14.7%)
Machines, engines, pumps: $31.1 billion (7.6%)
Gems, precious metals: $19 billion (4.7%)
Electronic equipment: $13.2 billion (3.2%)
Plastics: $12.5 billion (3.1%)
Aircraft, spacecraft: $12.3 billion (3%)
Wood: $11.8 billion (2.9%)
Aluminum: $8.2 billion (2%)
Paper: $7.7 billion (1.9%)

How does anything in the budget increase our sales of those goods and services

#22 Slow Canada on 03.23.16 at 7:02 pm

Garth, I love you, and I love the TFSA, but you gotta tone it down about the Liberals “neutering” it.

From 2009 to 2014, the limit was either $5,000 or $5,500. It was raised to $10,000 in April 2015, and rolled back to $5,500 in December. I would have loved for it to have stayed at $10K, but it’s not like it had an established history at that level. Joe Oliver also raised questions about the sustainability of the $10K limit when he said that it was for Stephen Harper’s granddaughter to worry about.

Let’s be fair here.

#23 How they don’t see that is weird on 03.23.16 at 7:08 pm

How they don’t see that is weird. Real estate’s a wealth trap. Why any 25-year-old would want to fund the retirement of a Boomer by taking over their $1 million house, or walk into 25 years of payments to live in a condo they could rent for less is inconsistent with Millennials being so smart. What, exactly, did they teach you in all those years at uni?

——-

Garth, Warren Buffett is no hipster either, yet he understands and explains it perfectly.

Mind you, he is just an investor, not carrying ideological baggage to limit his understanding.

There you go, never too late to learn a new trick – even for an old dog.

http://www.businessinsider.com/warren-buffett-explains-how-bubbles-are-formed-2016-3

“… My former boss, Ben Graham, made an observation 50 or so years ago to me that it really stuck in my mind and now I’ve seen evidence of it.

He said, ‘You can get in a whole lot more trouble in investing with a sound premise than with a false premise.’

If you have some premise that the moon is made of green cheese or something, it’s ridiculous on its face. If you come out with a premise that common stocks have done better than bonds [well, economists like Edgar Lawrence Smith back in 1924 have shown that this has been the case.]

That became the underlying bulwark for the [1929] bubble. People thought stocks were starting to be wonderful and they forgot the limitations of the original premise [….] So after a while, the original premise, which becomes sort of the impetus for what later turns out to be a bubble is forgotten and the price action takes over.

Now, we saw the same thing in housing. It’s a totally sound premise that houses will become worth more over time because the dollar becomes worth less. […]

And since 66% or 67% of the people want to own their own home and because you can borrow money on it and you’re dreaming of buying a home, if you really believe that houses are going to go up in value, you buy one as soon as you can. And that’s a very sound premise. It’s related, of course, though, to houses selling at something like replacement price and not far outstripping inflation.

So this sound premise that it’s a good idea to buy a house this year because it’s probably going to cost more next year and you’re going to want a home, and the fact that you can finance it gets distorted over time if housing prices are going up 10 percent a year and inflation is a couple percent a year. Soon the price action – or at some point the price action takes over, and you want to buy three houses and five houses and you want to buy it with nothing down and you want to agree to payments that you can’t make and all of that sort of thing, because it doesn’t make any difference: It’ s going to be worth more next year.

And lender feels the same way. It really doesn’t make a difference if it’s a liar’s loan or you know what I mean? […] Because even if they have to take it over, it’s going to be worth more next year. And once that gathers momentum and it gets reinforced by price action and the original premise is forgotten, which it was in 1929.

#24 long dong on 03.23.16 at 7:09 pm

I think you forget that the average household gross income is only around $75K. Couples in this income range cannot sock away almost half of their net income even with basic living expenses. Therefore, the higher $10K limit only benefits zillionaires like yourself.

The room is cumulative. You can use this in so many ways over the course of your life. Why would you not want the tool? — Garth

#25 Don Derc on 03.23.16 at 7:13 pm

Sigh….why is it that I have to come here for an intelligent conversation – maybe because my friends are buried under mortgages and children, as noble as my friends, and their goals and intentions may be.

” If I were a Millennial, I’d understand that no other generation has ever faced this kind of obstacle before.”

And I agree that most of us don’t understand what’s coming – even when we pay attention. Black Swan black bean stir fry anyone?

Garth – am I right when I look at the coveted “balanced portfolio” as a future dead beat – as housing tanks, the economy stays stagnant for a decade, unpaid bills for a fictitious war, and 100 million baby boomers in Nrth Amerika retiring over the next 15 years??

My sad question I ask all the time is “where do you run to”? Mexico was in now out. Nicaragua in 5 years maybe. Europe? Nunavit (fresh water there)? Brandon?

“Wherever you go there you are” my ass!

My sis bought me a ticket to Eckhart Tolle for April 16th – I don’t think the issue is money any longer – I think if we fix this country, and ourselves spiritually and morally this blog just might disappear n’est pas?

Return to Grace tonight at the Queen E at 8pm – maybe frickin Elvis can help me.

Cripes another size M wide bootprint on my ass. Garth!!!

#26 jaybee on 03.23.16 at 7:24 pm

Garth, these days voting is harder than investing. For me at least.

#27 X on 03.23.16 at 7:28 pm

re#24-never understood that mentality….would you like your RRSP contribution limit reduced as well?

There will be life events when you wished you had the contribution room. Why not have it available….

#28 jaybee on 03.23.16 at 7:30 pm

Garth, when young parents such as ourselves are struggling with the ridiculous cost of child care, things like TFSA limits take a back seat. I want the cumulative space, but if I can get relief from the crippling child care costs, I’ll take it instead.

The fact is people are really really struggling with the cost of child care these days.

So why would you want TFSAs reduced? Your kid will grow up. Cutting the tax shelter was not an economic choice by Trudeau. It was crass political symbolism. — Garth

#29 Grey Dog on 03.23.16 at 7:36 pm

Exciting reading about my future tonight Garth. Husband is retiring in a year. In 2009 after 33 years, he was given the golden handshake. At the time, all we knew was [email protected] and had a stash of mutual funds; we sat down…did the math…yikes. Got a professional advisor.
The good news, husband got more employment in his field…since 2010, we’ve been living on pension income and banking everything he currently earns.
Next year we will have lots of time for drives in the country and enough money to buy ice cream cones at your Belfountain General Store. (I grew up in the Caledon flats.). Hopefully you will be selling kawartha lakes ice cream…the best!

#30 Dr. Excel on 03.23.16 at 7:37 pm

Just doing a quickie little calc here, if one starts with $500,000, assuming a 5% annual return per year on the remaining funds and withdraws $40,000 per year, the principal is all gone in year 21. Once again proving Garth’s adage that the greatest risk for retired people is living longer than their money.

#31 Rexx Rock on 03.23.16 at 7:37 pm

If I was a millennial and educated I’d be looking for work in the U.S. ,South America or Asia.Everything from taxes, housing, and food are way to expensive in Canada .Revolt and say to hell with you.The government don’t own you if you leave.Or give and be a slave for 30 years.

#32 Dwilly on 03.23.16 at 7:39 pm

So lots of protesting about what the current govt is doing wrong. What would you do if you were the PM, with a majority??

#33 JP on 03.23.16 at 7:40 pm

Spoke with a mortgage broker buddy here in the yvr, he tells me lots of fraud going on in the mortgage business. Lots of speculators are tapped out and are having to turn to private lenders after a deal has been made on a house. Of course at much higher interest rates. Could this be the top?

#34 Rook on 03.23.16 at 7:40 pm

You really don’t think prices will hold at this level (or higher) in Victoria?

#35 For those about to flop... on 03.23.16 at 7:45 pm

Greetings gang, just got back from New Mexico, I am surprised customs at Yvr let a broke white dude back in but here I am!

Tried to avoid the national t.v stations whilst there.
Didn’t overhear any election talk,just things like rapid transit and jobs.

The most common gas price I saw was 1.75 a gallon.

I could not find the statue of Mark Farquar at Nob Hill but it was still a cool area if you like nostalgia from the Route 66 days.

One rule in New Mexico that I had not encountered before was they do not sell liquor within a certain distance from schools and churches so I had to hunt around for some refreshments, but I think it is a decent policy, also got my drivers license swiped at the supermarket to get approval to buy the stuff, I guess if you have ongoing issues then it’s no booze for you.

Also checked in on budget day and I think what the Metrosexual Messiah should have said was instead of his famous line was ” the balance can budget itself…”

M41BC

#36 lil' doo doo on 03.23.16 at 7:48 pm

#28 jaybee on 03.23.16 at 7:30 pm

Garth, when young parents such as ourselves are struggling with the ridiculous cost of child care, things like TFSA limits take a back seat. I want the cumulative space, but if I can get relief from the crippling child care costs, I’ll take it instead.

The fact is people are really really struggling with the cost of child care these days.

—————–

Child ownership is an optional, not mandatory, condition. If you were ill equipped to afford something, why would you make the purchase?

#37 malik on 03.23.16 at 7:49 pm

Sorry sir. Do not agree here with you. All your logic about deflation and hard times in future is correct but those can be avoided if millenials can find a jobs and infrastructure and other kind of spending will sure create jobs, now even after that if these idiots fail to save and keep on spending… that is totally other story. I am not Justin’s fan but he sure is better than hate mongering Harper who was doing divisive politics.
All this chaos was created by Jim F. and Mr. Carney when they kept the rates so low and Cmhc insured every Tom, dock and harry.
not to mention 0 down and 40 year amortization.
Nobody can fight Govt and they have printing presses and power to kick the can farther every time.
House prices always have increase and will keep on increasing. I regret not buying it 7 years ago when I arrived in this great country.
So technically people who have not bought have lost of big capital gains.
just my humble opinion and very well could be wrong.
even though I am a renter in brampton and living in 3800 Sq ft house (upper two floors with 5 bdrm) and only pay 2100 in rent, I believe I have missed the train to make big money during these 7 years.

#38 jaybee on 03.23.16 at 7:50 pm

“So why would you want TFSAs reduced? Your kid will grow up. Cutting the tax shelter was not an economic choice by Trudeau. It was crass political symbolism. — Garth”

I don’t want it reduced. In fact it pisses me off. I just meant that people with young kids, are struggling with the increased costs of raising kids, and daycare. Priorities…

#39 Loving the Sun in AZ on 03.23.16 at 7:51 pm

@ #29 Rexx Rock
Your advice is on point. I’m 35 y/o with PhD, MBA working in the Pharma industry. I decided to leave Vancouver over a year ago for a job in Phoenix with a multinational corporation. It was a difficult decision to leave the city I was born and raised in, but the insane real estate prices, lack of employment opportunities in the tech sector, relatively low salaries, and high taxes motivated me to look elsewhere. Vancouver is only a short 3 hr flight and I can visit every weekend. If you’re an educated Gen-X or Millennial, consider taking action rather than whining or complaining.

#40 JP on 03.23.16 at 7:53 pm

Dippers money laundering conference earlier today in YVR…

https://www.periscope.tv/w/acGGhzFEWktvYXpMdnJFYXl8MU93eFd5YUVOUFZHUekIHiCdqm5Lqo4VREuc_XgEvkUNM3o_UUESKF5TiGHX

Eby is a showboat. — Garth

#41 conan on 03.23.16 at 7:56 pm

#10 Frank on 03.23.16 at 6:33 pm

Ummmm…. the next technological advancement is robots and robots are going to take away millions and millions of jobs.

Remember when flat screen tv’s came out? Now look at them. Robots are now where flat screen tv was 10 years ago.

http://www.dailymail.co.uk/sciencetech/article-3128035/Will-job-stolen-robot-Calculator-reveals-likelihood-droid-sitting-desk-future.html

#42 long dong on 03.23.16 at 7:58 pm

Yeah I get that, people make a little more in their grey years but it still only benefits people with higher incomes.

#27

Okay so add in another $25K for RRSPs. An average household is now stashing away 95% of their income. Sounds reasonable.

#43 jaybee on 03.23.16 at 8:02 pm

36 lil’ doo doo on 03.23.16 at 7:48 pm

“Child ownership is an optional, not mandatory, condition. If you were ill equipped to afford something, why would you make the purchase?”

That maybe the creepiest comment I’ve ever seen on this blog.

I can certainly afford to raise my kids. They will want for nothing, and their post secondary education will be paid for.

And, by the way my TFSA (and my wife’s) will be fully maxed along with our RRSP’s. Yes, I’m pissed that the limit is reduced. And, by the way I am also pissed that the child fitness tax credit is going away, what with the childhood obesity epidemic.

I merely stated that a lot of middle class families with children are struggling mightily with child care costs. And the grits capitalized on it politically.

#44 Retired Boomer WI on 03.23.16 at 8:02 pm

I still see the BIG problem. That problem is the Freedom accumulated money will bring. Not a single person “NEEDS” to “own” a home.

They may wish to own at home, and perform the extreme reach for one, whether millennial, or late Boomer who doesn’t have one. The later Boomer who doesn’t have the time to pay it off, nor the millennial who does, but can’t see the future value (less than he thinks) can benefit from home owning without adequate savings to fund the geezer years.

While I hear a lot of bitching about the cutback in TFSA room, I see a darn low percentage of the population taking advantage of one right now!

With more geezers, tending to live longer, do you really think the government will carry your wrinkled boobs, and ass? Not a chance. Instead, think of what we are likely to see here in the US, where the average wrinkly already has a higher income in retirement. Our social security trust fund, so called because there is no fund, and no trust, will spend down their surplus bonds by about 2030 ~ give or take. Then, based on current flows benefits will be trimmed to about 75-78% of present payment value.

Expect your healthcare premiums to rise over the years as well.

The yelling will be audible, but the wiser are planning for that ahead of time.

While the young have time on their side, they had best stash what they can into a future fund for themselves.

Starting in your 20’s has valuable compounding time over starting later when you can ‘afford’ it. I’ll give you a heads-up, you will never be able to ‘afford’ it, just consider it a necessary expenditure, and DO it!

Whining gets you no where. Sorry for your PM ‘s idiocy to blow 100 Billion on ‘stuff’ hey even I could do that.

RB

#45 Ronaldo on 03.23.16 at 8:07 pm

#15 sockeye sam on 03.23.16 at 6:45 pm

”It won’t be a Canadian millennial that funds my retirement. It will be some one from China, over here on the bent side of Van. Mayor Moon beam, “TEAR DOWN THAT HOUSE”.

And if you get an offer for 2.5 for that teardown and you get the check in your hands you shout out to your wife, “Start the car”. A lot of millionaires in Vancouver right now. Wonder how many will have the smarts to cash in.

#46 hope & ruin on 03.23.16 at 8:07 pm

Sorry blog dogs. But I have to respond to this moron “setting the record straight”. I encourage you to skip this post. Because I will just be mocking how stupid he is instead of posting anything of substance. Actually. I never really post anything of substance. Just sarcastic remarks to people. But this will be a prolonged version of that.
______________________________

#1 Setting the Record Straight on 03.23.16 at 6:13 pm

Now ‘hope and ruin’ , you are certainly ruined on this blog. You should slither away in shame!
_________________________________

ruined on this blog? absolutely not. I could care less.

I come here for the public discourse and financial advice. If nothing else I am impressed that people are this bothered by what I write.

You on the other hand look like a moron. At first, I thought that “setting the record straight” might be Mark under a different name. But even HE couldn’t post something this dumb. Your crappy arguments and appeals to authority disguised as “critical thinking” actually remind me of godth.

The fact that you don’t understand what’s wrong with this approach only encourages me to mock you more. You know that right? Some people keep making the same mistakes.

I’m not sure where I should begin dissecting this. Whether I should tackle:

– the fact that your response is out-of-left-field and makes no sense to the discussion we were having yesterday. Godwin’s law isn’t in-play. Because eugenic’s was ACTUALLY a policy of these groups. It’s like calling godwin’s law during a discussion of WW2. You’re an idiot.

– Your belief that this somehow discredits me. This is a blog for discussion. So you make a claim and the discussions over? as if your “oh so smart” appeal to authority is really that convincing? You thought that rebuttle was a home-run? lol.

– Or should I just post critiques of the author you posted. Since you like appealing to authorities so much. Where he was criticized for “socio-neoDarwinianism” (eugenics) or his evangelical style of writing as opposed to empirical or analytical. All of which basically back-up my original points. You should really do your research before you give me more ammunition.

But it’s your call. Where should I start?

#47 RimJabba on 03.23.16 at 8:14 pm

I’m considering leaving Canada now. As someone making near six figures, the taxation makes it pointless to stay. The quality of life is dropping fast. We have the perfect recipe for misery: sky high taxes, insanely overpriced real estate, socialist government, social justice warriors policing speech, feminist teachers turning the kids into white-people hating communists.

I can handle the mass immigration thing, lots of nice ladies coming over, it’s not all bad. But the overall attitude of this country turns my stomach.

I now know why socialism sucks, it punishes hard working people and rewards welfare bums.

If things do not change soon, we will be like Greece in 5 years, a bankrupt government, political turmoil, and mass austerity. I almost swear some evil old prick is sitting behind the scenes instructing the idiot politicians on how to get us bankrupt ASAP so we’ll be like Greece sooner.

Smoking Man, which programming language is best, in terms of international jobs? I already know VB, C++, HTML, CSS. Canada is boring, nothing here but lame government jobs and house worshipping debt slaves.

#48 mathman on 03.23.16 at 8:20 pm

Long time reader and big fan of GT. Where I disagree is the with the magnitude of the correction that is inevitable in RE. People are either stupid, oblivious or don’t care to know, but the reality is anyone with a heartbeat in this country can get a mortgage. Our lending by all accounts and try definitions is sup prime.

CMHC and terrible policy has created a monster, to the point that now a very large portion of our GDP and employment in Canada is either directly or indirectly linked to real estate. This is where the compounding impact of a RE correction will really hurt. It’s not the house price drop, it is everyone whose livelyhood depends on the upward trajectory in home prices. Once these people can longer afford to consume, then we have a major problem.

Iceland had the highest # of Range Rovers in the world per capita before it imploded. Take a drive to any GTA suburb and look that the cars in peoples driveways, it is low end fully financed luxury car heaven!!

I work with a number of Americans, and speak with many colleagues in the US daily, someone asked me today if the average income in the GTA is over$200k/year. I laughed and said it is less than half – exact words from my colleague – “Then how the f..k does anyone afford a home”

Were a so deep in RE BS here it is beyond reason and understanding.

#49 common sense on 03.23.16 at 8:20 pm

#35 Flopper

Welcome back! You didn’t miss much…

#50 Freeman on 03.23.16 at 8:21 pm

Boomers and the coming stock market crash. I think you should read this article, it just might save your life savings:

http://www.marketwatch.com/story/rich-dad-author-says-the-market-collapse-he-foresaw-in-2002-is-coming-2016-03-23?mod=MW_story_top_stories

Amazing what fading financial stars will say to stay relevant and make money. — Garth

#51 mathman on 03.23.16 at 8:25 pm

Comment on the TFSA – I’m reasonably wealthy but not a Millionaire and have been diligently contributing to the TFSA since it’s inception. The reduction was stupid, you don’t need a crazy income to save $10k.

Instead of encouraging folks to save for themselves and not have to rely on the Gov’t the current policy direction is clear, let people continue to binge on debt, then ask the diligent and responsible savers to bail them out, after you reduced the one non-registered tax free benefit.

I’ve said it before, it has never been easier for bright young people to pick up and leave, I loose two or three a year each year. We need to encourage innovation and entreprenurship, this is the only way to grow and create quality jobs.

#52 Mark on 03.23.16 at 8:26 pm

“Lots of speculators are tapped out and are having to turn to private lenders after a deal has been made on a house. Of course at much higher interest rates. Could this be the top?”

How could that possibly be? All the news media, various blog trolls, associated Realtors and Twitter tell us almost universally that its “Chinese” with suitcases of cash driving the market. Not leveraged speculators by the hundreds, if not thousands. Including that “Khalid” that I like to quote from a Globe and Mail article.

The Vancouver top was actually a couple years ago. What you’re seeing today is the sales mix having shifted so much to higher-end properties, and basically speculators passing properties back and forth to inflate valuations so they can extract as much credit as possible (and perhaps rope in a random sucker or two). The high quoted sales prices are mostly completely unavailable to “Joe Sixpack” house owner in Vancouver. Consumer behaviour has increasingly been altered accordingly.

Ummmm…. the next technological advancement is robots and robots are going to take away millions and millions of jobs

Highly doubtful.

So lots of protesting about what the current govt is doing wrong. What would you do if you were the PM, with a majority??

Rationalize all-in compensation (including pensions) in the public sector, for starters. Retroactively when necessary. And require the provinces (and native bands) to do the same as a condition of any federal money. Implement significant limits to the CMHC, particularly around house prices (ie: limit subprime guarantees to the lowest 25th percentile of prices).

#53 TRUMP FOR PM on 03.23.16 at 8:32 pm

#17 memories

———

And that mentality goes to show your business sense. Economists are no better. Theoretical book knowledge doesn’t give you practical entrepreneurial skills on how to start and run a company. Harper got us to this point, T2 is just hopping in and holding onto the wheel.

#54 A Yank in BC on 03.23.16 at 8:43 pm

Is everyone entitled to a retirement? A hundred years ago, not many people ever considered the possibility. You worked.. until disease took you out.

#55 Rexx Rock on 03.23.16 at 8:44 pm

#39 LOVINIG IN THE SUN AZ.
Good for you,escape the serfdom here while you can.Don’t get me wrong,Canada is still a great place for workers wanting to escape some poverty,polluted over populated nation and have lots of money to easily launder.

#56 common sense on 03.23.16 at 8:44 pm

#46 Mark

Please for god’s sake start your own blog.

Please.

#57 Caught In The Grip on 03.23.16 at 8:55 pm

Do you think the $CAD will be impacted by increasing the federal debt in the future?

#58 For those about to flop... on 03.23.16 at 8:56 pm

#49 common sense on 03.23.16 at 8:20 pm
#35 Flopper

Welcome back! You didn’t miss much…

/////////////////////////////////

Hey Common,what about gems from Mark Farquar like about only rich people having kids?

New Mexico was my 16th state visited and Mark is considered a putz in 15 of them.

The people in Utah are too forgiving…

M41BC

#59 Memories on 03.23.16 at 8:59 pm

#53 TRUMP FOR PM

Sure, an economist is not good enough for you.

Which former president, PM with “practical enterpreneural” skills do you have in your mind as an example in modern history?

#60 western observer on 03.23.16 at 9:00 pm

Hi Garth,

All of us in living in the greater Vancouver area know that Chinese real estate purchases are a major factor in driving up prices.

Before you label me racist , it could be the British or Hawaiians or Congolese, to me that is irrelevant.

That fact remains there are outside forces driving the market up.

I find your denial of this puzzling . Deny all you want ,but those of us that live here know the truth.

http://www.theprovince.com/business/chinese+investors+third+vancouver+homes+national+bank/11804630/story.html

(1) The bank analyst’s methodology is meaningless, based on dollar volumes, not unit sales and without good data. (2) More importantly, so what? No law or action will change the reality nor drop prices so long as YVRers remain as obsessed with housing as you. Foreigners may be emblematic of house lust but you guys are the ones supporting it. — Garth

#61 cramar on 03.23.16 at 9:01 pm

Garth, sometimes your post hits a home run. Today it was bases loaded and you sent one out of the park. A warning for the ages—should be etched in stone!

Is anyone out there listening? HELLO!

#62 Crass political on 03.23.16 at 9:03 pm

“So why would you want TFSAs reduced? Your kid will grow up. Cutting the tax shelter was not an economic choice by Trudeau. It was crass political symbolism. — Garth”

—-

It was, no doubt.

But what do you expect, when even this blog is not exempt from this disease?

#63 Dr. Talc on 03.23.16 at 9:13 pm

I agree with #37 malik
Harper’s legacy is HST and C51, two things for which there was no demand whatsoever, from Canadians of course

#64 Immigrechoisi on 03.23.16 at 9:13 pm

I’m glad i discovered our blog.

Im an educated millenial and newly immigrated in this country (less than one year). Like most of my fella, i was planning to save for down payment buy a condo in the upcoming years. But now, i’m thinking twice. Im a very saavy person. I have no debt, i pay off my credit card every month, i drive a 10 year old car paid cash, and already maxed out my tfsa with equities EFT portfolio (for immigrants, contribution room begin the year they became resident, not since the TFSA inception like other canadians. So, mine is $15.500 for 2015 and 2016), and i can’t have an rrsp before 2017.

So, my question is : which other assets can a millenial buy today to secure his retirement in 25 years ?

#65 Vundo on 03.23.16 at 9:15 pm

#41 conan: you, like Nino, worry a too much.
http://pbfcomics.com/archive_b/PBF197-Automatic_Business.jpg

#66 For those about to flop... on 03.23.16 at 9:16 pm

My wife is abit of a softie and is sad about Rob Fords passing.
From the other side of the country I viewed him more as a comedian than a politician, but if nothing else he brought a lot of people’s attention to local politics and got people thinking about who represents them in public office.

This is normally the part of the post where I try and leave a zippy one liner, but out of respect for a guy who for right or wrong seemed to be trying to make a difference in the world I will go straight to the dot dot dots …

M41BC

#67 Mark on 03.23.16 at 9:17 pm

“Do you think the $CAD will be impacted by increasing the federal debt in the future?”

The CAD$ itself, sure. Expansions in government spending over time reduce purchasing power available to consumers, and reduce productive output of the economy.

However, the CAD$/USD$ pair (or any currency pair for that matter) has to be evaluated on the relative positions of either currency. Canada’s federal deficit of $30B/year, pales in comparison to the US (2015) deficit of $437B using the traditional 1:10 ratio. Thus, while $30B is bad, its not as bad as that experienced in the US. On that measure, the CAD$ should strengthen if such relative deficits continue in the future.

Likewise, the US government’s debt is ~17T. Canada’s federal government debt is ~$650B. So the US is nearly 3X worse once you adjust with the 1:10 ratio. This is another factor which should, over time, give rise to a structurally higher CAD$/USD$ pair.

Of course, you really can’t use such to trade currencies in the short term as there are all kinds of other factors and cyclicalities overlaid upon such.

#68 Panhead on 03.23.16 at 9:19 pm

Man … I’m just glad I retired and started sucking on the government teat at 60. The milk seems much sweeter the earlier you take it. Soon to be joined by my younger “better half.” She leaves the finances to me mostly but after watching the budget highlites on the “news” last night she turned to me and said … and I quote … “We’re fkd.” Had a laugh … but feel for anyone young out here in 604land. They really are fkd.

#69 waiting on the westcoast on 03.23.16 at 9:19 pm

#56 common sense on 03.23.16 at 8:44 pm says “#46 Mark…Please for god’s sake start your own blog. Please.”

salesmix.com is taken but salesmix.ca is available according to godaddy… ;-)

#70 WalMark of Sadkatoon on 03.23.16 at 9:21 pm

#17 memories on 03.23.16 at 6:49 pm

there’s a difference between an economist and an entrepreneur

just letting U kno

#71 Linda on 03.23.16 at 9:22 pm

#7 April – not as many as you’d think. Of course, events could occur to change matters, but basically if you make it to age 65 in Canada & have no dire health issues at that point in time you are pretty much guaranteed to live the current life expectancy for a Canadian born man or woman, which is around age 78 for men & age 83 for women. Because people are living longer financial planners are now routinely telling people to use age 90 or even age 95 for retirement planning purposes, but even now most people won’t live that long.

#72 DrillBaby Drill on 03.23.16 at 9:24 pm

An anecdote from Calgary in the oil patch. I am seeing adjustments being made already with the new cost structures being experienced with project proposals submitted. There is currently beginning in our industry a new cost structure adjusting to sub $40/bbl oil. Never count Alberta out.

#73 WalMark of Sadkatoon on 03.23.16 at 9:25 pm

If you’re an educated Gen-X or Millennial, consider taking action rather than whining or complaining.

good advice

unfortunately some of them are only qualified to complain. how else can u explain a person w 2 technical degrees who can’t find a job in a booming sector?

a loser, yeah I kno…

#74 Amazing Grace on 03.23.16 at 9:26 pm

#47 RimJabba on 03.23.16 at 8:14 pm
Smoking Man, which programming language is best, in terms of international jobs? I already know VB, C++, HTML, CSS. Canada is boring, nothing here but lame government jobs and house worshipping debt slaves.
========

He only knows some vba.

#75 David on 03.23.16 at 9:27 pm

Hard to see how the middle class can be saved by contractionary monetary and fiscal policy.

#76 WalMark of Sadkatoon on 03.23.16 at 9:28 pm

. What you’re seeing today is the sales mix having shifted

no

nobody is seeing this

simple google shows van real estate price increasing despite sales mix

sorry thanks for playing

#77 lee on 03.23.16 at 9:29 pm

#24, long dong

Garth is not a Zillionaire. I don’t even think he’s a Billionaire.

#78 For those about to flop... on 03.23.16 at 9:30 pm

#69 waiting on the westcoast on 03.23.16 at 9:19 pm
#56 common sense on 03.23.16 at 8:44 pm says “#46 Mark…Please for god’s sake start your own blog. Please.”

salesmix.com is taken but salesmix.ca is available according to godaddy… ;-)

//////////////////////////

Hey Waiting,I was thinking more like ” dixtalkinsalesmix.ca”…

M41BC

#79 WalMark of Sadkatoon on 03.23.16 at 9:33 pm

#67 Mark on 03.23.16 at 9:17 pm

pay no mind to WalMark prediction of CAD/usd

he admitted on RFD that he’s been wrong about his prediction for 2 yrs and made no money from it from 2014 thru 2016

everybody made bank betting against the CAD over that period and have moved on

poor WalMark

still holding 2 tech degrees and looking for someone to hire him

has my pity

#80 TCContrarian on 03.23.16 at 9:45 pm

***But, of course, I’m no hipster. Just a guy who thinks you need to be careful. Voting is easy. Investing is hard. Only one of those really works.*** – Garth

________________________________________________

Not really disagreeing with you, but I’ll add what Warren Buffet has said:

“Investing is simple; but not easy!”

I understand this to mean:

– is ‘simple’ = buy low, sell high

– ‘not easy’ = your own emotions and everyone else is telling you to do the opposite ie. buy high (real estate)

That’s why I’m a contrarian…

#81 Tony on 03.23.16 at 9:45 pm

Re: #37 malik on 03.23.16 at 7:49 pm

Garth is spot on this time and a home in the GTA will likely be one of the worst possible investments in the next several decades. The birthrate is falling in almost every country worldwide which should mean deflation and zero or even negative growth.

#82 TRUMP FOR PM on 03.23.16 at 9:50 pm

#59 Memories

——————-

There has never been one.

#83 Retired Boomer WI on 03.23.16 at 9:52 pm

#35 Flopper

Welcome Back home!

No, you didn’t miss much…… Did you expect to miss much???

#84 Linda on 03.23.16 at 9:52 pm

Have to say, the idea that such a high percentage of Boomers are intending to ‘rely heavily’ on CPP etc. is just a tad scary. Plus what will happen to house prices if or when half of the Boomers try to sell their houses to fund their retirements? Canada has or had 9 million Boomers (death has to have thinned the ranks by now). Even if only half of them own a home & half of the home owners ‘need’ to sell in order to retire or have income in retirement, that still adds up to quite a few houses. I just can’t see how all those homes for sale adds up to anything but reduced pricing – especially if the home ‘has’ to be sold so the owner has enough money to live on.

#85 MF on 03.23.16 at 9:53 pm

#63 Dr. Talc on 03.23.16 at 9:13 pm

Harper’s legacy is nearly a decade of rule in which the Canadian economy was seen as strong amidst a backdrop of chaos.

He will also be seen as the last leader (for the next 4 years anyways) who realized who the real enemies and friends were in the world, and who wasn’t a lying “progressive” pandering to the gullible while pushing his globalist agenda like our new PM is.

How are things going in Belgium these days? Paris? How’s that working out?

MF

#86 MF on 03.23.16 at 9:58 pm

#35 For those about to flop… on 03.23.16 at 7:45 pm

Welcome back!

I really thought Ford was going to make it. You hear of these “celebrities getting sick and always assume they will pull through because they are a little larger than life.

MF

#87 Tony on 03.23.16 at 10:00 pm

Re: #57 Caught In The Grip on 03.23.16 at 8:55 pm

Do you think the $CAD will be impacted by increasing the federal debt in the future?

No it won’t impact the Canadian dollar. Falling commodity and oil prices especially oil will.

#88 Smoking Man on 03.23.16 at 10:04 pm

Same MO when Dalton, Wynne, and now T2. Bullshit your ass off on the campaign. What do they all have in common.

An adviser, Gerald Butts. The main Climate Change snake oil sales men hiding in the shadows, tweeting bullshit.

Millennials in 15 years from now when your daughters are selling there asses for a loaf of bread, you have developed a brain, with T2 is in hiding. Find Butts he caused it all your pain.

#89 MF on 03.23.16 at 10:05 pm

#46 hope & ruin on 03.23.16 at 8:07 pm

Atta boy. Your posts are always spot on. This one included.

#11 waiting on the westcoast on 03.23.16 at 6:36 pm

Exactly. Like Garth has written about a lot, debt is seen as a positive these days. That’s how much of a joke our “economy” is.

Trump’s popularity has a lot to do with his rejection of PC policies and not necessarily his economic views (although they are important too). A now vocal silent majority is fed up with political correctness. They are looking at Europe, at us, and 8 years of Obama and saying no thanks.

MF

#90 Bottoms_Up on 03.23.16 at 10:09 pm

#20 45north on 03.23.16 at 6:57 pm
——————————
In Ottawa today you can buy a decent 3-bedroom townhouse for 3x a decent salary.

#91 not 1st on 03.23.16 at 10:16 pm

Brad Wall is going to have to come in and clean this all up in 4 years

#92 broader mind on 03.23.16 at 10:16 pm

Economic growth…. of the past exploded along with population growth. Yesterday’s budget is visionary with the underlying message to go forth and multiply. Religious belief’s (weak as of late)where the original messenger and now a common sense government sees it. The same cons that whiiiine about immigration lined up yesterday to denounce the child tax credits. I wonder who would be left in this country if they had their way.

#93 Vegeta on 03.23.16 at 10:16 pm

A little over 9,000 people in Canada retire every week.
_________________________________________

It’s over 9000!

#94 parksville senior on 03.23.16 at 10:21 pm

To quote the inestimable Jim Prentice, who may have been speaking for you Garth “Math is hard”, also logic is hard.

But you and Donald Trump seem to enjoy trips of total absurdity espousing your Con roots.

Talk is cheap. buddy. Ante up and admit the neocon trickle down economics have failed, brought us to the biggest depression since the 1930’s and the austerity bugs have built us a world economy that sags in lack of growth.

PS—wealth building requires jobs and productivity-hand outs to the rich as had been practiced by the Harper goons was akin to burning our furniture to warm the outdoors.

Things are getting better.

#95 not 1st on 03.23.16 at 10:22 pm

Pet projects should be offset by growth, not taxes on another group.

For instance, if first nations want more schools and infrastructure to the tune of 8 billion, they should have been arm twisted to let a pipeline go ahead.

Or if Mr Coderre wants basket case bombardier bailed out, he has to let energy east go ahead.

#96 Two-thirds on 03.23.16 at 10:23 pm

Garth, the new budget dispensed with income splitting for families with children under 18, so is contributing to RRSPs a good strategy for compensating for the lost tax credit?

It is clear that TFSAs are great retirement investment vehicles, but is paying more tax over the next 4 years while contributing to TFSAs (with after-tax dollars) better than temporarily shifting contributions from TFSAs to RRSPs, lowering taxes, and contributing the refund to TFSAs?

I am sure unused RRSP room in Canada is so massive that those who wish to send a message to government could lower their taxes by adopting the above strategy.

Life is about choices – choosing to lower tax bills using all the rules in the book is what financially responsible citizens can do to vote with their wallet.

#97 PVSinsight on 03.23.16 at 10:24 pm

“At least the boomers have real estate to sell – which about half of them plan to over the next few years.”

It is interesting to note that the topic of oversupply in housing is rarely mentioned. There is no doubt that there will be an abundant supply of boomer homes on the market over the next decade or so.

Who will pick up the majority of this real estate without the price coming down to meet the reality of the market? Will most millennials buy 500-750K homes, not to mention 1M? With advances in technology, transportation, and the trend to simpler and smaller living, cause this higher end market to become dormant?

Most of all, why would the next generation put most of their money and energy into a castle that brings few benefits to its owners and the community and is counter productive to long term sustainability?

#98 BS on 03.23.16 at 10:27 pm

If I were a Millennial, I’d understand that no other generation has ever faced this kind of obstacle before. I’d see that houses could become a major source of financial deflation, growth could be flat for decades, and the last thing I’d ever want is more debt.

Millennials seem to think the government earns all the money and then divides it up amongst the citizens. When they see the 1% living the life they want they think it is unfair the government gave the 1% so much and them so little.

New flash Millennials. The government earns nothing. People earn what they get. If you want more, earn it.

The government takes money from those that produce and redistributes it. It only works if those that produce play the game. Once those that produce leave or retire, game over. They are the ones earning the money the government redistributes. Be nice to those that are paying your way.

Now we have T2 borrowing even more money to redistribute and waste on pet projects. The borrowed money T2 is spending now will be paid back by the Millennials. Enjoy those climate change projects and the CBC. You will be paying for them. Once all the 1% leave for greener pastures or retire it will be up to you to pay for back the money borrowed for the ‘infrastructure’ and OAC, CPP, GIS, etc T2 is promising. Enjoy! You voted for it.

#99 Kothar on 03.23.16 at 10:33 pm

It doesn’t really matter to these people or the socialists . You can just borrow money and increase spending and increase taxes. Until the bond market or interest rats make borrowing more xpensiv the gov will just a keep spending. We need another hit the wall debt ultimatum we had in the 1990s to get back on track.

#100 Butcher on 03.23.16 at 10:37 pm

OAS – Old Age Security not Supplement.
GIS – Guaranteed Income Supplement

#101 Kenchie on 03.23.16 at 10:39 pm

Ted Cruz’s least qualified economic advisor

http://ritholtz.com/2016/03/158999/?utm_content=buffer52aaa

#102 ed on 03.23.16 at 10:42 pm

The definitive Donald Trump:

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

(This is what makes Trump fans great) :)

#103 conan on 03.23.16 at 10:42 pm

The middle class are disappearing because losing a job now means your next job will be crap. So, the huge money now going to families makes sense.

All of our national economic systems depend on growth to prosper. That growth needs to come from population or it could crash.

Most of the long term actuarial planning ( made years ago for large public sector pensions ) is based on 6 % return from bonds.

We have a shit souffle baking in the macro oven.

#104 Bottoms_Up on 03.23.16 at 10:44 pm

#47 RimJabba on 03.23.16 at 8:14 pm
———————————-
Everyone pays the same tax rates on the same dollars earned.

Upper-income earners pay the same rates as lower income earners, and then on their extra income pay between 43-53% (represents 90k to 220k salary).

What should these rates be? What are they in other countries? A savings of a few percentage points isn’t all that much money, unless you make really big money.

#105 dr talc on 03.23.16 at 10:46 pm

How are things going in Belgium these days? Paris? How’s that working out?

MF


i don’t watch TV
so i miss all the black ops and psyops
it’s worse than you think
all the opposition to c51 by politicians was controlled opposition

we don’t have an opposition
they publicly disagreed with Harper. but they never called him out on his lying, which was obvious, the Ottawa shootings were FAKE
if you think the Paris and Belgium events were real you deserve c51

#106 BK on 03.23.16 at 10:53 pm

Thanks Garth

Great post,

perspective of a millennial….

For those who choose to sit on the sidelines of this crazy real estate game, would you advise investing 100% of your net worth in stocks/mf/etf/bonds etc.. or a percentage of it?

Thanks

#107 MF on 03.23.16 at 10:57 pm

#98 BS on 03.23.16 at 10:27 pm

**Here’s a repost of what I wrote yesterday about us millennials. I’ve noticed there are two groups of us and it basically comes down to attitude and success in life.

A) Comes from a good family. Hard working and fairly successful. Educated and well versed in world

events/economics = Realize T2 is a joke

B) Broken family, pot head, lazy, likes to blame others, gullible, head in the sand = Voted T2

That’s how my cohort broken down so everyone knows and we can stop generalizing.

MF

#108 Trump 2016 on 03.23.16 at 11:02 pm

The best investment for any Canadian right now is pursuing American citizenship.

America will swell with greatness and prosperity under Trump.

#109 Smoking Man on 03.23.16 at 11:04 pm

Chapter 8 done. bit of editing required, but it explains all those stain’s on the ceiling.

#110 preet89 on 03.23.16 at 11:05 pm

Garth forgets that our generation will be inheriting the assets of our parents. This will be millions because they were lucky enough to buy homes much cheaper than we did.

They will make one or two million on their homes while we may only make a few hundred thousand.

It is passing on that wealth which helps society.

Checked life expectancy charts? Don’t be too anxious. — Garth

#111 Millmech on 03.23.16 at 11:08 pm

#71 Linda
Correct so that most couples only need $500,000 to get through with the govt kicking in $20,000/person not too bad of a retirement.

#112 MF on 03.23.16 at 11:12 pm

#105 dr talc on 03.23.16 at 10:46 pm

Yeah go tell that to the people killed in Brussels yesterday. Go tell that to those killed in Paris last year too.

MF

#113 Steerage Bilge on 03.23.16 at 11:13 pm

#109 Smoking Man on 03.23.16 at 11:04 pm

Chapter 8 done. bit of editing required, but it explains all those stain’s on the ceiling.

Projectile vomiting?

#114 cramar on 03.23.16 at 11:17 pm

I saw this CBC news story tonight on one smart Millennial. Got to admire her. She is an example of what the millennial generation aspires to. Too bad Canada doesn’t have more like her.

http://www.cbc.ca/player/play/2685854578 to

#115 wallflower on 03.23.16 at 11:27 pm

#48 mathman on 03.23.16 at 8:20 pm

Iceland had the highest # of Range Rovers in the world per capita before it imploded. Take a drive to any GTA suburb and look that the cars in peoples driveways, it is low end fully financed luxury car heaven!!
=====
Expensive vehicles all over Markham, but, according to sales guys at two dealerships I was at, “These Chinese people come in and pay cash!!! They never finance.” So, I don’t think this is a debt problem!

#116 Paul on 03.23.16 at 11:28 pm

#47 RimJabba

The hyperbole and sexism in your post is over the top.

“I can handle the mass immigration thing, lots of nice ladies coming over, it’s not all bad.”

If you feel that way, please leave.

Your comment on “house worshipping debt slaves” is pertinent – but doesn’t excuse your post.

#117 Paul on 03.23.16 at 11:29 pm

#47 RimJabba

The hyperbole and sexism in your post is over the top.

“I can handle the mass immigration thing, lots of nice ladies coming over, it’s not all bad.”

If you feel that way, please leave.

Your comment on “house worshipping debt slaves” is pertinent, but doesn’t excuse your post.

#118 45north on 03.23.16 at 11:31 pm

Treasury Board Scott Brison said the government will have to invest in both people and technology to rebuild Canada’s public service that was “cut to the bone” by the previous Conservative government.

well Shared Services wasn’t cut in fact it was created under the Conservative Government. It’s raison d’être is bigger is better. It was supposed to save millions by consolidating email servers but billions have been spent. the underlying premise is wrong. Bigger is not better. Solution delegate IT back to the departments.

http://ottawacitizen.com/business/local-business/circuit-overload-why-shared-services-canada-is-struggling

For example, he Scott Brison said the government will be hiring more staff when it reopens the nine Veterans Affairs offices that the Conservatives closed but the “ benefit of service either in person or by phone does not obviate the need or opportunity to improve the quality of public services through IT investments.”

I don’t get it. If you reopen nine offices you are supposed to get better services, but it sounds like that’s not enough.

This week’s budget announced plans that will clearly mean more staff in pockets across government — the biggest being new auditors and tax specialists to lead the Liberals push to beef up collections and crack down on tax evasion and avoidance.

it would help if Revenue Canada could keep its own email system

Brison is trying to attract more young workers because the average age of a new recruit joining the public service today is 37.

because you have to have a BA or better and you have to work 10 years as a temp before you get hired permanently. Frankly a lot of civil jobs have disappeared: secretaries – civil servants are expected to type out their own reports

Brison will also lead a spending review to find $3 billion in savings but much of this is expected to come from eliminating “inefficient tax measures.” Garth has already covered this. RRSPs are more costly than TFSAs.

The Canadian Coast Guard and RCMP have already been flagged as agencies that need more funding to deliver their “mission-critical services.”

the RCMP must translate Amber Alerts in BC to French. I am personally proud of bilingualism in the Civil Service but you gotta have common sense.

In the budget, the government gave Shared Services a big boost to help manage the troubled transformation of the government’s IT services, from email to data centres — $383 million to its base budget and anther $77 million for cyber security.

well I agree that $383 + 77 million is a big boost. This money is the basis not just for jobs but careers. Directors, business requirement analysts, programmers, testers. Oh and contractors.

http://ottawacitizen.com/news/politics/brisons-big-jobs-modernize-the-ps-find-3b-in-savings

#119 would-be-buyer on 03.23.16 at 11:34 pm

Canada has 2 choices: 1) more immigrants or 2) be Japan.

Canada has shown it will go with door #1. That will mean more immigrants, and specifically wealthy ones, which means class welfare.

#120 hope & ruin on 03.23.16 at 11:40 pm

Garth, I recognize the vista in the pic. That’s belfountain. I’d know it anywhere. Did you blow out the road to stop the moisters? We like ice cream too. But we’re coming anyways. Hope you’re up and running soon. All the harley riders will be stopping by.

#121 Rain on 03.23.16 at 11:42 pm

“Foreigners may be emblematic of house lust but you guys are the ones supporting it. — Garth”

Exactly, blame the victims.

#122 OttawaGuyRenting on 03.23.16 at 11:43 pm

#28 jaybee on 03.23.16 at 7:30 pm

Garth, when young parents such as ourselves are struggling with the ridiculous cost of child care, things like TFSA limits take a back seat. I want the cumulative space, but if I can get relief from the crippling child care costs, I’ll take it instead.

The fact is people are really really struggling with the cost of child care these days.

—————–
Pfffft – I hear parents complain about kids daycare fees with designer clothes on a 3 year old. “Timberlands” and “roots” sweaters
Same parents making $600 payments on a MazdaSUV

Please

#123 45north on 03.23.16 at 11:52 pm

Dr. Talc: yesterday you posted: that policy was not extended to Polish white Christians, many were executed in front of their own families

that is true. I personally heard a Polish woman telling how her father was treated when he tried to defend her

but today you sound like a nut: we don’t have an opposition they publicly disagreed with Harper. but they never called him out on his lying, which was obvious, the Ottawa shootings were FAKE
if you think the Paris and Belgium events were real you deserve c51

#124 Raj on 03.23.16 at 11:55 pm

I am Thirty and I think it’s time to move down to Flordia, lots of boomers but no state tax and I can probably buy my house in cash!

#125 CP on 03.23.16 at 11:56 pm

They just have to get rich the way that most people do, be nice to your folks and wait for them to circle the drain.

#126 Brazil ex-pat on 03.23.16 at 11:59 pm

http://www.cknw.com/2016/03/23/ndp-call-on-premier-to-end-money-laundering-in-bc/

Reason #46 we left Canada.

Wow. I mean…..just where would all us stoooopid plebs be if after 20 years of “I told you so….” the Govt….who takes 50% of our labour in taxes……was not here to help us.

Gee whiz…….

#127 JSS on 03.24.16 at 12:09 am

Yummy yummy
rub your tummy

Power Financial Corporation increases dividend

http://www.newswire.ca/news-releases/power-financial-reports-record-2015-earnings-and-dividend-increase-573199141.html

#128 rainclouds on 03.24.16 at 12:12 am

#108
“Chapter 8 done. bit of editing required, but it explains all those stain’s on the ceiling.”

Mark’s brain?

#129 TRT on 03.24.16 at 12:13 am

One great thing about skyrocketing rents in Vancouver is that no Canadians from elsewhere in Canada and immigrants from first world countries such as the USA, Western Europe, Australia will want to immigrate to Metro Vancouver.

Too expensive for what you get.

Its all Asian immigration from here on end. They better change laws soon here to accommodate the majority! Cant wait for rooftop patios on every house and fences that go to lot lines! Just like back home in the motherland.

#130 TRT on 03.24.16 at 12:16 am

Post #108

Any person under 35 would be crazy not considering moving to the USA. Texas has no income tax! Come back at 65 and collect GIS/OAS and free healthcare if major need come up.

#131 TRT on 03.24.16 at 12:23 am

Garth, the betting is Canadian RE is too big to fail now. Canada will never raise rates for a long long time! If Bond Market in US goes haywire, gov could change policy…by allowing visa for house purchase program in smaller cities.

I’m a renter garth but I can tell you that Canada is one of the most corrupt places on the planet. The sheep just don’t see it because they ve been ‘schooled’ well.

Gov/BoC can change policies and effect outcomes.

#132 Bobs ur uncle on 03.24.16 at 12:25 am

#107 MF on 03.23.16 at 10:57 pm
#98 BS on 03.23.16 at 10:27 pm

**Here’s a repost of what I wrote yesterday about us millennials. I’ve noticed there are two groups of us and it basically comes down to attitude and success in life.

A) Comes from a good family. Hard working and fairly successful. Educated and well versed in world

events/economics = Realize T2 is a joke

B) Broken family, pot head, lazy, likes to blame others, gullible, head in the sand = Voted T2

That’s how my cohort broken down so everyone knows and we can stop generalizing.

MF

******
Very thoughtful observations.

In my analysis, all millennial Harper voters have a stick up their ass, spend lots of time moaning about their generation on financial blogs, and wouldn’t know fun if it danced naked in their lap.

I’ll show you my supporting data when you show yours…

#133 DD on 03.24.16 at 12:56 am

There is clear bias, but good points against the liberals. Either way, you said it your self. Not like it really matters who you vote for anyways, liberal or conservative they all have limited power. At the end of the day they have to appease the people and keep the government Ponzi scheme going. You can’t just pour cold water on the population Donald Trump style or can you…?

#134 Island Renter on 03.24.16 at 1:00 am

Garth How much more crazier will this go on?
I know you going to not believe this one; Victoria SUBJECT PROPERTY WAS THE SITE OF A MURDER SUICIDE ON APRIL 21, 2015. COURT ORDERED SALE. FORECLOSURE.

https://www.realtor.ca/Residential/Single-Family/16584492/4904-Cordova-Bay-Rd-Victoria-British-Columbia-V8Y2J5

#135 Ronaldo on 03.24.16 at 1:02 am

Regarding Corporate Class Funds as an alternative/addition to RSP’s. Still beneficial even with the upcoming changes in the budget. Something that has worked very well for me these past few years.

http://www.moneysense.ca/news/corporate-class-investment-funds-to-lose-key-advantage-federal-budget/

#136 family beagle on 03.24.16 at 1:11 am

Behold, the great boomer dine and dash.

#137 chapter 9 on 03.24.16 at 1:18 am

#98 Not 1ST
For instance, if first nation want more schools and infrastructure to the tune of 8 billion, they should have been arm twisted to let a pipeline go ahead.

Over the next 5 years the budget allocates 8.4 billion to the aboriginals which make up only 4% of the population.
It is interesting to note that only 0.2% or 15 million is going for skills and employment but 96 million for aboriginal political and regional organizations to “engage the government”.
Indigenous and Northern Affairs Canada between 1946/47 to 2013/14 has spent 214.7 billion.
Health Canada has spent 1994/95 to 2013/14, 40.6 billion.
Provincial governments over the last two decades up 2013/14, 8.3 billion

#138 Entrepreneur on 03.24.16 at 1:48 am

By the time I read the blog and comments I forget what I was going to write does that mean that I am boomer?

About the budget…it was cute, but that is all with deficit…like a wand with a wish, a make believe world, words that we want to hear but with pretend money, an idea that credit only builds, like walking on a bridge but can fall any time, taking a chance but most would not walk/go that way.

I think that the PM & FM still believe in Santa Clause or the Easter Bunny as their budget is like walking on glass ready to crack anytime and fall. They are obviously taking a chance but they do have to be careful of the revenues, no revenues higher taxes or less programs.

Any leader who does not respect Small Business does not understand the their overall importance. Shame, shame.

#139 Fortune500 on 03.24.16 at 2:19 am

#31 Rexx Rock. That’s what we did. We make way more than we could ever have made in Canada, and save a lot more as well. Combined we would need to make over $300,000 as a couple in Ontario to equal it now.

At this stage, as a young family we watch from afar and wonder if we will ever come back. It looks less appealing over time. Even with the nearly $20,000 per year the government would currently give my kids tax free if we were there.

I know a lot of educated, talented Millennials who have taken the advice of ‘if you don’t like it leave’. Sadly, you will only see the full impact of this brain drain in a few decades (see the Maritimes for notes on how this works out)

I suspect those smart enough to see the fallacy of buying at the top, being priced out of housing, and having no viable employment options to match cost of living (outside of government jobs), have made the the choice to relocated. Or are in the process of doing so.

#140 Fortune500 on 03.24.16 at 2:35 am

One other point. All of this talk about how people should have less children in order to save the environment and reduce the world population is all well and good, but the truth is, you are a drop in the bucket. If you really believe that Canadian born Canadians having fewer children will somehow make a difference on a global scale, you are vastly mistaken (Check out Freakanomics What Came First the Chicken or the Avocado and Levitt will explain)

The other problem you have is, if everyone follows your advice, we end up with an inverse pyramid here in Canada (larger than the one we are about to have). And when the government can’t support it, we have 3 options:

1. Reduce coverage of seniors and those relying on heath care

2. Tax the limited base more

3. Bring in more immigrants.

And you can bet the government in power will choose 3 every time because it is the easiest and least disruptive in the short term.

But guess what? These immigrants are coming from places where your ideology doesn’t apply or match. Having large families is often a goal in life for religious and cultural reasons. As we need more people to fill the void we need to bring in more immigrants which means making more comprises when it comes to educated, productive people. Want to bring your extended family and their cousins and grandparents, sure we need the tax base.

Go walk around Vancouver and see what trading foreign investment/population looks like. Feels like.

#141 Vangrrl on 03.24.16 at 3:44 am

#24:
‘I think you forget that the average household gross income is only around $75K. Couples in this income range cannot sock away almost half of their net income even with basic living expenses. Therefore, the higher $10K limit only benefits like yourself.’

You are so wrong. I’m certainly no zillionaire and have maxed out my TFSA with index funds.

#142 Mr Mister on 03.24.16 at 4:29 am

Garth you’re not incorrect but the issue isn’t so much the early years of retirement, between a paid for house and a bit in savings CPP OAS and GIS it will be enough. The real issue is as you age and the husband dies. There will be a lot of poverty stricken widows. Second issue is healthcare, I remind everyone you need money to gain front of the line access in Canada. Healthcare is not CHEAP!

#143 #10 Frank: Kondratieff and Elliot Wave = Bad News on 03.24.16 at 5:14 am

#10 Frank:

FYI, both the Kondratieff and Elliot waves show we are in a down cycle…poor Millennials.

_________________________________________________

Garth, I have been saying what you said today since the early 90s, about what will happen to the Boomers like me in retirement (I am just fine, took my own advice).

All you had to do is go look at StatsCan and Bank savings data, even back then. Same data now, except exacerbated (i.e., the “writing was on the wall” quite some time ago as to how bad it would be, and got bad).

Glad today you said it.

Honestly, I have little sympathy for Boomers that led the good life by borrowing other people’s money, not saving/investing and now, 94% (…ouch) will not be able to adequately fund their retirement.

Millennials doing the same, instant home at outrageous cost by borrowing other people’s money and not saving/investing…their fate will be worse.

But hey, T2 and his acolytes will probably institute Helicopter Money for themselves…what the heck, it grows on trees right?

_________________________________________________

FYI Garth, taught about Finance and Investment at various Universities/Colleges since early 90s (mortgage calculations, income tax calculations, simple/compound interest, bond yields, sinking funds, etc. and how to make the calculations/model them for uncertainty and quickly so, in Excel).

You can lead them to the trough BUT you cannot make them drink.

Universities should make a Finance and Investment course compulsory to all Canadian students to save them from themselves.

#144 earthboundmisfit on 03.24.16 at 6:21 am

“Investing is hard” ??? Maybe if you’ve been lobotomized.

#145 economictsunami on 03.24.16 at 7:08 am

“A little over 9,000 people in Canada retire every week. Yes, these are boomers, and they join approximately 10,000 aging American hippies who are going through the same life change each day….”

Although many people are hitting the retirement age, how many are actually retiring?

I’m not so sure of the split with the numbers but some I know are retiring when they hit a magical number (late 50’s early 60’s) whether they are prepared or not.

There are also those who I am aware of that have retired but after a short period needed to return to the workplace due to poor planning. (either lack of sound investing and/or curbing spending habits; mostly both.)

And there are a growing segment that have postponed retirement altogether for any number of reasons.

What will happen when the wealth effect (mainly driven by cheap credit) turns out to be just that; merely a transitory slight of hand?…

Stiglitz: The New Generation Gap

“While today’s older generation encountered bumps along the way, for the most part, their expectations were met. They may have made more on capital gains on their homes than from working. They almost surely found that strange, but they willingly accepted the gift of our speculative markets, and often gave themselves credit for buying in the right place at the right time. …”

https://www.project-syndicate.org/commentary/new-generation-gap-social-injustice-by-joseph-e–stiglitz-2016-03

#146 maxx on 03.24.16 at 7:27 am

“…..being incessantly encouraged to sink into real estate debt.”

Too darned right. “Sink” sums everything up perfectly.

Gubbmint, having been grossly and irretrievably seduced by the multifarious tax revenue re used to funnel into public coffers, could be forgiven for a little recency bias. But definitely not after the economy has been stalling for years and is getting worse, personal debt is at epic levels, the middle class is tapped out and the young are jumping like a herd of buffalo over the re debt cliff.

Fiscal salvation through re? Not by a long shot.

Canada is weakening, investment firms have been shorting Canadian re and yet, gubbmint continues on its merry “business as usual” way. Listening to Canada’s CEO yesterday did not inspire confidence. Rather, it frightened me to the core. Lack of experience and confidence resulted in the projection of a nebulous grasp of Canada’s vulnerable situation.
Our finance minister sounded like a desperate sales pitch.

Yikes.
Canada cannot continue to re and blue collar itself to rapture. Just how many infrastructure improvements and enhancements make a difference? We’ve definitely gone overboard on this one.

Canada has(d) so much potential, yet the lure of easy money leads gubbmint to focus on keeping on with squashed rates, not only cheapening money, it plays a real number on people’s heads: most don’t understand the value of this precious tool – they simply spend it like running tap water and merrily carry on borrowing.
As for gubbmint? Just a little longer, just around the corner, the economy will pick up, things will be brighter. Not going to happen. At best, we’re going sideways for a looooong time.

Those who’ve planned for this mess will live the good life in spades. The rest will be watching them, reflecting on what could have been.

Our currency has earned its loonie status. How can this moniker possibly inspire respect? Especially on a global scale.

#147 Kevinhole Eerie on 03.24.16 at 7:40 am

“The hole” ?

What’s this, a tribute column?

I like it, Garth, you little maggot. :)

Do it again when I’m running to be the Trump of Canada, ok!

#148 Bottoms_Up on 03.24.16 at 7:46 am

#141 Vangrrl on 03.24.16 at 3:44 am
————————————
The couples I know in that combined salary range (with two kids) can barely afford to keep their hydro on, let alone save 10k in a TFSA. Give your head a shake.

Can’t afford electricity but produce two kids? — Garth

#149 Bottoms_Up on 03.24.16 at 7:49 am

#139 Fortune500 on 03.24.16 at 2:19 am
———————
How exactly do you get to 20k tax free per kid? Ridiculous.

#150 Bottoms_Up on 03.24.16 at 7:55 am

#122 OttawaGuyRenting on 03.23.16 at 11:43 pm
—————————–
Nice clothes often come from extended family. Having a reliable and safe family vehicle is insurance for your family too.

A decent daycare centre in Ottawa will run you $1400/mo ($$16,800/yr) when still a baby, dropping down to about $1200/mo for preschool. Lord help you if you have two kids in care. It is not an insignificant cost, and the tax rebate runs at about 15% of this.

And then you get babysitting/education financed by the taxpayers, including childless couples, singles and others who pay but do not draw. Not a bad deal overall. Stop moaning. — Garth

#151 mishuko on 03.24.16 at 8:20 am

the cutting of the TFSA and favoritism towards houses in my eyes is like this stupid hipster movement. all about having 1 ‘green’ vehicle blabalbla.

I don’t know why anyone would only want one. Why not strive to have them all?

TFSA = your sports car
RRSP = your bike
Margin = your track car
Cash = your weekend car
Chequing account = your daily beater
cpp/oas/gis = that stupid zip car membership you signed up for but forgot you had

#152 Millmech on 03.24.16 at 8:26 am

#148 Bottoms Up
What are they doing wrong I raised two kids as a single parent and was putting the max tfsa away every year($10,000).Pay yourself first,live below your means,talk to some single parents with no safety net and see that you can get by on one wage as they do.

#153 MF on 03.24.16 at 8:27 am

#132 Bobs ur uncle on 03.24.16 at 12:25 am

Lol buddy I don’t know what age you are, but you should have seen my facebook feed that night. If you think for a second that millennial t2 voters voted for anything beyond “free weed”, and that this was thoroughly thought out, I have news for you.

How many T2 supporter millennials do we regularly have on this financial blog complaining to Garth that “times are changing”? Go smoke some more weed. Maybe you can get high and start hallucinating money growing on trees.

MF

#154 WalMark of Sadkatoon on 03.24.16 at 8:29 am

Can’t afford electricity but produce two kids? — Garth

makes no sense

#155 Bottoms_Up on 03.24.16 at 8:30 am

#150 Bottoms_Up on 03.24.16 at 7:55 am
—————————
Right, me outlining the facts to someone that makes a dismissive comment about childcare costs when in fact they can be crippling for many families is moaning? Sorry, just trying to get reliable information on the net rather than baseless comments.

And another fact, singles and childless couples also benefitted from many of the same things to which they now contribute such as education. And while they were children i am quite certain singles and childless couples contributed to their upbringing….so you know what? They need to stop moaning.

#156 WalMark of Sadkatoon on 03.24.16 at 8:44 am

US continues to b strong

sorry your live sux Haters

u have my pity

Applications for jobless benefits have now been below 300,000, a threshold associated with healthy labor market conditions, for 55 weeks, the longest stretch since 1973.
http://www.businessinsider.com/initial-jobless-claims-march-24-2016-3

#157 David Granner on 03.24.16 at 9:21 am

‘…live in a condo they could rent for less is inconsistent with Millennials being so smart. What, exactly, did they teach you in all those years at uni?’

Perhaps millennials aren’t so smart, after all. And I would doubt they learnt much of anything at ‘uni’, other than sharing and caring and peace and love and tolerance ad nauseum

#158 jess on 03.24.16 at 9:29 am

Bigness

Some humans seem to hate big government with the exception of 1 trillion to “modernize” or as Donald Trump has said that the nuclear arsenal doesn’t work and is out of date. Cruz agrees with the spending wants to continue to develop missile defense.
see transcript @http://www.globalzero.org/blog/ted-cruz-eliminating-nuclear-weapons
https://www.govtrack.us/congress/bills/114/s831

Japanese taxpayers are picking up the $100B tab for the Fukushima nuclear disaster
https://news.vice.com/article/japanese-taxpayers-will-pick-up-the-100b-tab-for-the-fukushima-nuclear-disaster

“Russia’s new RS-26 missile travels along a continuously changing trajectory and as such it has no analogues in the world,” the expert said.When asked about the US missile defense system, he said that it was “absolutely useless” against the RS-26.
“This one is even better than the famous Topol-M missile… Its warheads are supersonic and change their course all the time. Some of them will penetrate any existing missile defense shield and will hit their target,” the expert added…These new Russian ICBM warheads were developed in response to America’s plans to deploy a global missile defense system along Russia’s borders.
The RS-26 Rubezh is expected to become operational in 2016.”
http://sputniknews.com/russia/20160309/1036002714/russia-missile-shocker.html
======
President Obama spoke about how ” the big banks had collectively raised $700 billion more capital, how there were now mechanisms for “orderly unwinding” banks that get into financial trouble without having to bail them out and how financial derivatives were in the process of being more heavily regulated. ”
==========================
paper war between two sets of bondholders,”
swap contracts in financial distress
http://www.nytimes.com/2016/03/22/business/dealbook/credit-default-swaps-make-restructuring-more-difficult.html?ref=dealbook
http://www.bloomberg.com/news/articles/2016-03-10/norske-skog-ruling-misunderstands-protections-covenant-review

#159 Frankly Smoke on 03.24.16 at 9:36 am

Talk about a hole, the country is laughing at Juniors math

Bombardier says Ottawa’s $1 billion is just gravy

bombardier-cseriesIf Bombardier doesn’t need the $1 billion it has requested from Ottawa, as the head of its C-Series program told the Financial Post, why is it even being considered? Bob Dewar says the company already has all the money it needs, and cash from the feds is basically just gravy. It’s “really just an extra bonus that would be helpful but clearly is not required,” he says. How can the Trudeau government possibly justify the request in light of that?

But the dope business is expected to go ‘Green’ . Isn’t that just great for the next generation of semi literate Liberals?

#160 broader mind on 03.24.16 at 9:38 am

My mother comes from a family of twelve children.She had a family of four of which I am one. I had two children. My grown children thus far have none. This spells not only economic slowdown but rather extinction of old Canadians.Government needs to do all it can to reverse this trend including paying its citizens to breed.You can all laugh as I tell you that Mexico’s future is far brighter than USA and Canada’s.The cost of living is conducive to children and a massive future labour force .Wake up people.

The world’s population has doubled in my lifetime. This may be a planetary death sentence. Yes, wake up people. — Garth

#161 Granite_counters on 03.24.16 at 9:53 am

People who mention they don’t care about the TFSA limit going down or actually prefer it being cut need to re think their investing strategy. You’ll appreciate a higher limit when you’re investing. $10000 a year should be no problem if you plan to invest and budget your income correctly.

Those with lots of money have maxed it a long time ago, don’t worry.

#162 Annek on 03.24.16 at 9:55 am

#28 Jaybee

“The fact is people are really really struggling with the cost of child care these days.”

Do you not think that generations before you struggled with the cost of day care? Why do you think you are so different.
We had not help, interest rates were high. Often, one would wonder if it was worth it to go to work, pay for day care or to stay home and take care of the kids. We never had the benefit of one year paid maternity leave. Just a few months, if we were lucky.
The difference is that we were not greedy and bought ourselves a huge home and got caught up in the mortgage race. Many couples rented , saved some money before they bought a home. Today , most couples buy a massive home even before they get married.
They now have huge debt, living pay check to pay check.
They bitch and complain about the cost of daycare. I guess you can’t have it all. But now you cannot stay home and take care of the kids because you have this huge mortgage. It’s all about greed and believing you deserve it all, without making sacrifices. We made sacrifices before. We did not expect huge homes all at once. In summary, we have all struggled with the huge cost of daycare. This is not new. At least you have T2 giving you extra money if you have kids. What more do you want? Free daycare? Huge homes? Zero percent mortgage and car loans? Dinner out every night on your credit cards because you are too tired to cook? Suck it up. Others before you had to.

#163 broader mind on 03.24.16 at 10:00 am

The world’s population has doubled in my lifetime. This may be a planetary death sentence. Yes, wake up people. — Garth Really,lets talk about the western world in the last ten years and more specifically about Canada’s without immigration. You and I both know China’s growth is due to population.I was discussing Canada’s future–not the planet.Very humorous Garth

Of course. White people are more environmentally friendly. What was I thinking? — Garth

#164 Sideshow Rob on 03.24.16 at 10:04 am

Ham is a myth???

Not according to Bloomberg. They say 1/3rd of Vancouver homes are being purchased by non resident Chinese buyers.

http://www.bloomberg.com/news/articles/2016-03-23/chinese-buy-one-third-of-vancouver-homes-national-bank-estimate

Lets face it. It’s not in the political best interest to admit this but we have a government approved foreign invasion going on in Vancouver and to a lesser extent Toronto. Too many important people are being greased so it’s not going to change any time soon. Local Canadians are being priced out of their own country. It’s sad.

The headline is wrong. That’s what’s sad. — Garth

#165 Trey on 03.24.16 at 10:09 am

Garth more proof bail-ins coming to a theater near you – this isn’t a conspiracy kook site either:

https://www.armstrongeconomics.com/international-news/canadas-new-bail-in-proposal/

Another American who doesn’t know what he’s talking about. There was nothing new in the budget regarding bail-ins (or lack thereof). All of that verbiage had been picked up from a past Flaherty budget. Your ‘expert’ site just got punked. — Garth

#166 waiting on the westcoast on 03.24.16 at 10:13 am

#121 Rain on 03.23.16 at 11:42 pm
““Foreigners may be emblematic of house lust but you guys are the ones supporting it. — Garth”

Exactly, blame the victims.”

You are only a victim of you participate. Quit being a victim….

#167 Trey on 03.24.16 at 10:15 am

Boomers and the coming stock market crash. I think you should read this article, it just might save your life savings:

http://www.marketwatch.com/story/rich-dad-author-says-the-market-collapse-he-foresaw-in-2002-is-coming-2016-03-23?mod=MW_story_top_stories

Amazing what fading financial stars will say to stay relevant and make money. — Garth
———————————————————
Garth is right. “Rich Dad” was telling people to buy gold, then it collapsed – lol!

#168 James on 03.24.16 at 10:15 am

#47 RimJabba on 03.23.16 at 8:14 pm

I’m considering leaving Canada now. As someone making near six figures, the taxation makes it pointless to stay. The quality of life is dropping fast. We have the perfect recipe for misery: sky high taxes, insanely overpriced real estate, socialist government, social justice warriors policing speech, feminist teachers turning the kids into white-people hating communists.

I can handle the mass immigration thing, lots of nice ladies coming over, it’s not all bad. But the overall attitude of this country turns my stomach.

I now know why socialism sucks, it punishes hard working people and rewards welfare bums.

If things do not change soon, we will be like Greece in 5 years, a bankrupt government, political turmoil, and mass austerity. I almost swear some evil old prick is sitting behind the scenes instructing the idiot politicians on how to get us bankrupt ASAP so we’ll be like Greece sooner.

Smoking Man, which programming language is best, in terms of international jobs? I already know VB, C++, HTML, CSS. Canada is boring, nothing here but lame government jobs and house worshipping debt slaves.
……………………………………………………………………
Your asking Dr Smoking Man? He only knows VBA and why ask him, according to the Great Dr Smoking Man everything you need you can find on Google.
Like his family photos here.
https://www.youtube.com/watch?v=PnAR7s8iRLY

#169 Daisy Mae on 03.24.16 at 10:17 am

“Cutting the tax shelter was not an economic choice by Trudeau. It was crass political symbolism. — Garth”

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

By Harper — a bribe to garner votes. It didn’t work.

#170 Bobs ur uncle on 03.24.16 at 10:20 am

#153 MF on 03.24.16 at 8:27 am
#132 Bobs ur uncle on 03.24.16 at 12:25 am

Lol buddy I don’t know what age you are, but you should have seen my facebook feed that night. If you think for a second that millennial t2 voters voted for anything beyond “free weed”, and that this was thoroughly thought out, I have news for you.

How many T2 supporter millennials do we regularly have on this financial blog complaining to Garth that “times are changing”? Go smoke some more weed. Maybe you can get high and start hallucinating money growing on trees.

MF

****

Methinks you need some new FB ‘friends’ – buddy.

#171 Daisy Mae on 03.24.16 at 10:28 am

#43: “And, by the way I am also pissed that the child fitness tax credit is going away, what with the childhood obesity epidemic.”

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

Send the kids to the nearest park for a game of baseball. Cut back on the junk food. Problem solved.

#172 Penny Henny on 03.24.16 at 10:29 am

To blogger #46 hope & ruin on 03.23.16 at 8:07 pm.

Setting the Record Straight is one of VREU multiple personalities.

#173 mauri on 03.24.16 at 10:31 am

What’s the matter Garth? Why don’t you upload my comments? I thought you uploaded comments even though they disagreed with your POVs.

Comments are moderated when I get around to them. Those which are repetitious or otherwise waste real estate here may be trashed. Deal with it. — Garth

#174 Smoking Man on 03.24.16 at 10:34 am

Holly crap, what an eye opener.

Following the tweets in the Ghomeshi verdict..

Looking at the profiles of the Femanzis. They are hard core crazy.

I’m calling not guilty on all charges

#175 Mike in Edm on 03.24.16 at 10:50 am

I’m sure Garth won’t be happy with this ‘news’ article…

http://www.msn.com/en-ca/money/topstories/chinese-buy-one-third-of-vancouver-homes-national-bank-estimate/ar-BBqQFln?li=AAgh0dA

This has been posted by various people over 30 times. I will have a few comments on it tonight. Suffice to say the methodology is appalling and the conclusion is false. — Garth

#176 Renter's Revenge! on 03.24.16 at 10:54 am

Of course. White people are more environmentally friendly. What was I thinking? — Garth

Like the polar ice caps, white skin reflects more sunlight back into space, thus moderating global warming.

Also handy for showing stains! And making yellow sweaters look better! — Garth

#177 Daisy Mae on 03.24.16 at 10:56 am

#162: “….It’s all about greed and believing you deserve it all, without making sacrifices….”

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

All that, as well as the Harper governments’ encouragement to take on, and subsequently wallow in debt.

#178 Donald Fung on 03.24.16 at 11:00 am

Still yellin “There’s no such things as HAM”?

http://www.calgaryherald.com/business/chinese+investors+third+vancouver+homes+national+bank+estimate/11804486/story.html

Hey, I’m Chinese and we don’t think exposing foreign citizens from China is going to insult all Chinese people or create a race war. We can tell the difference between the effects of one vs the other just like every one else.

If you are you really must be some kind of idiot with an agenda of hiding the facts for the wacko politically correct. Stop treating us like we’re delicate flowers Garth. I’ll still vote Liberal if you start telling the truth.

Where we can prove anything, it’s worth knowing. This report is based on ‘extrapolated’ numbers from US-only data. Completely worthless. Like your criticism of others. — Garth

#179 Sean on 03.24.16 at 11:05 am

Rough Budget… T2 managed to quickly undo the only good things Harper did during his time. I am exactly thirty. I definitely thought a young PM might get the issues facing the youth. Reversing the age back to 65? Brutal. Halving the TFSA? Lame. Now we have to pay more and more to keep the boomers well fed while we take on more and more debt. Can’t complain too much being lucky to have a good job and a nice place to rent, I want a house but I can suck it up and live without. All this debt though, I didn’t ask for. How did we go from 10B to 30B and no plan on cutting it back to 0. Bah.

#180 broader mind on 03.24.16 at 11:11 am

Of course. White people are more environmentally friendly. What was I thinking? — Garth Wow ! Garth ,you just managed to trump Trump.Not sure how white or any other color has anything to do with growth via demand /population trends. Wayyyy off base.

Do they not have satire on your planet? — Garth

#181 Ernie on 03.24.16 at 11:25 am

32 Dwilly on 03.23.16 at 7:39 pm

So lots of protesting about what the current govt is doing wrong. What would you do if you were the PM, with a majority??
==================================== Common sense comes to mind if I were PM . Looking after our people comes first before doling out $ to other nations under some guise of being concerned about the environment. In my house we do not spend money we don t have . Government should be run the same way. Can t afford it don t fund it .
Just saying!!

#182 broader mind on 03.24.16 at 11:26 am

I’m sorry, Garth you win the king provocateur title. Kardashian style . My hats off to you.

#183 mauri on 03.24.16 at 11:34 am

Garth, you say you give this blog for free, but how do we know you don’t take money anonymously like some think tanks?
I guess we will never know.
If you think a budget that moves to the left, and helps children, old people, students, aboriginals and other weak members of society, is just “debt” and “future taxes”, and do not see this as an “investment”, then you
can go live in the capitalist third world where government doesn’t care about other than corporations
and themselves.
Helping the weak to become strong is always an investment. I am personal proof of that.

You prove more than that. — Garth

#184 Smoking Man on 03.24.16 at 11:37 am

The paradox of insanity = Ghomeshi Trial.

Not guilty on all charges, not only that but the patriarchy judge bitch slaps the liars. On twitter the femanizs are going bat shit crazy, rabid beasts of hate. Man o Man, resist commenting on twitter, this pissed off mob my track you down and string you up and have a public castration ceremony, they want blood and revenge.

Destroying a mans carrier isn’t enough.

So sisters, best entertainment money can buy.

#185 AB Boxster on 03.24.16 at 11:38 am

Ghomesh acquitted.

National post website had it first.
G&M Second.
CBC (that pathetic excuse for a news organization) third.

#186 The Other Chris on 03.24.16 at 11:48 am

If you can make Smoking Man’s kind of money in the US knowing only VBA, I’m absolutely in the wrong line of work right now.

#187 Uncalled on 03.24.16 at 11:49 am

This report is based on ‘extrapolated’ numbers from US-only data. Completely worthless. Like your criticism of others. — Garth

This is uncalled for. A major bank has lots of data we don’t. It’s clear what’s happening in Vancouver but by all means delete it if it hurts business in any way. Instead of “we have no data”, start saying “methodology is incorrect”.

‘A major bank’ did not prepare the report. It was one guy, using US numbers. He admitted it. Useless, except to feed your prejudice and preconception. — Garth

#188 Vamanos Pest on 03.24.16 at 11:54 am

From the comments above, I really feel like people miss the point on the TFSA. Specifically, the assertion that it benefits the rich. Since it is in fact AFTER TAX MONEY that is initially invested, the benefit is from the growth. When you consider how compounding works, the benefit of the TFSA is not HOW MUCH you contribute, but HOW LONG you contribute for.

TFSA’s do not specifically benefit the RICH, they specifically benefit the YOUNG.

5k vs 10k doesn’t really matter, what really matters is if you’re contributing at age 25 or age 55.

#189 april on 03.24.16 at 12:01 pm

#179 Sean – The “boomers” were once young too, and many had to struggle to make it in life. No inheritance to help them out. One day you’ll be old and will take whatever you can get.

#190 WalMark of Sadkatoon on 03.24.16 at 12:05 pm

I am exactly thirty. I definitely thought a young PM might get the issues facing the youth.

politicians don’t make decisions based on the needs of youth silly

they do things for ppl and orgs that have and spend $

#191 Smoking Man on 03.24.16 at 12:12 pm

#186 The Other Chris on 03.24.16 at 11:48 am
If you can make Smoking Man’s kind of money in the US knowing only VBA, I’m absolutely in the wrong line of work right now.
……………..

Law of Supply and Demand,

VBA is only surface scratched at University. Every Bank, Trade Floor, Insurance, Big Pharma, uses it extensively.

Java, C++ way harder lots of developers around.

Bottom line is, you become the best in any field your going to draw top dollars.

#192 Ronh on 03.24.16 at 12:13 pm

#72 yup oil industry is making adjustments. Gone are those drivers of
the big trucks. Robot trucks are coming. Australian iron mines have been using them for years.

#193 hope & ruin on 03.24.16 at 12:21 pm

#172 Penny Henny on 03.24.16 at 10:29 am
To blogger #46 hope & ruin on 03.23.16 at 8:07 pm.

Setting the Record Straight is one of VREU multiple personalities.
_______________________________

well. at least it’s treatable.

strange to have a blog dog working so hard to get another to leave though. I like everyone’s posts. even big dipper’s. how boring it would be if we all agreed. it sucks when people leave.

#194 saskatoon on 03.24.16 at 12:42 pm

throw those disgusting women who lied in prison.

give them the max. sentence jian would have got.

MGTOW.

#195 specifically benefit the YOUNG on 03.24.16 at 12:43 pm

#188 Vamanos Pest

TFSA’s do not specifically benefit the RICH, they specifically benefit the YOUNG.

5k vs 10k doesn’t really matter, what really matters is if you’re contributing at age 25 or age 55.

—-

Theoretically.

In reality, according to stats, the wage gap between “young people” and “old people” is bigger than any time in the past 50 years or so, leaving less money to save, compared to previous generations.

Exact details were posted here recently.

#196 saskatoon on 03.24.16 at 12:54 pm

#150 Bottoms_Up

having children is a CHOICE.

you speak as if parents are somehow victims–deserving of money taken by government (through force) from strangers.

if someone makes a “bad” decision…it does NOT make it morally just to forcibly redistribute money from those who have made BETTER decisions.

you are insane.

#197 Jeff on 03.24.16 at 12:59 pm

Very good article Garth. I see 3 possibles outcomes for the long term :

1) Canada will become a 3th world country with poor population

2) Hyperinflation

3) Civil war

#198 JamesA on 03.24.16 at 1:02 pm

The fear of being the first generation to succumb to downward social mobility is one of my biggest motivators. The boomers are a tough act to follow (I know, I know about the whole timing and getting a bit lucky with history thing). If humans can make it to the moon (check out “for all mankind” criterion collection), we can keep succeeding past this level.

#199 Canada's Loss on 03.24.16 at 1:14 pm

The Federal Budget missed the mark by a mile, double bogey.

Want Canadians working, unemployment to go down, provide incentive to spend on big ticket items that add value to an asset.

A National Renovation Tax Credit would have seriously greased the “employment” spigot. Replacing windows, upgrading insulation, ultra high efficiency furnaces, water heaters, light fixtures, appliances, painting, decks, fences, flooring, etc.

Trudeau’s miss is Canada’s loss.

#200 broader mind on 03.24.16 at 1:17 pm

#183 mauri You prove more than that. — Garth ———————————————————————————-ouch! but extremely funny

#201 Retired Boomer WI on 03.24.16 at 1:36 pm

I thought having a family was the option of a couple?

Paying the costs on that family, either with a stay at home mom, (who might work part time when dad is home to watch the kids) or the costs of day care if one wanted to work full time was the families responsibility, not the Taxpayers?

Social programs ARE getting a tad out of line, or is this just MY opinion?

Children ARE a CHOICE -not mandatory.

#202 saskatoon on 03.24.16 at 2:01 pm

#198 JamesA

“The fear of being the first generation to succumb to downward social mobility is one of my biggest motivators.”

this is a very interesting idea.

#203 Brazil ex-pat on 03.24.16 at 2:11 pm

#197 Jeff on 03.24.16 at 12:59 pm
Very good article Garth. I see 3 possibles outcomes for the long term :

1) Canada will become a 3th world country with poor population

2) Hyperinflation

3) Civil war

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

All of the above……and in MANY countries. People are pissed at large govt that just steals their money everyday and they get nothing for it.

#204 BlackDog on 03.24.16 at 2:17 pm

@ saskatoon on 03.24.16 at 12:42 pm
“throw those disgusting women who lied in prison.
give them the max. sentence jian would have got.
MGTOW.”

For a minute, I thought this was a sarcastic comment, but then I realized that there are men who actually think like you. No doubt some of them can even be found in our judicial system.

Anyway, since you are so obviously an open-minded, see the forest through the trees, kind of person, I thought maybe you would find this Macleans article interesting (note the sarcasm):

http://www.macleans.ca/news/canada/jian-ghomeshi-how-he-got-away-with-it/

#205 Daisy Mae on 03.24.16 at 2:19 pm

#100: “OAS – Old Age Security not Supplement.”

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

When does the clawback begin — $175,000 annual income, or thereabouts? These income earners clearly do not need it.

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth

#206 BlackDog on 03.24.16 at 2:43 pm

@ saskatoon on 03.24.16 at 12:42 pm
“throw those disgusting women who lied in prison.
give them the max. sentence jian would have got.
MGTOW.”

Further to my prior comment, your attitude is what is disgusting, not the three women who were brave enough to come forward with their experiences of abuse. To clarify for you, the women were not the ones on trial, though it sure did SEEM that way.

Ghomeshi was found not guilty, but that doesn’t mean he was innocent (read the Maccleans article I referenced to give you some idea of his character).

Sadly, the vast majority of sexual assaults do not get reported and few of the ones that do result in a conviction. The outcome of this high profile case will likely result in even fewer assault victims coming forward. This is sad for Canadian women and those who care about them.

#207 Mixed Bag on 03.24.16 at 2:48 pm

#184 Smoking Man on 03.24.16 at 11:37 am

Doesn’t it seem strange that the guy kept documentation that supported him? Years old phone texts and letters? Who keeps that stuff?
Seemed awfully prepared.

#208 Smoking Man on 03.24.16 at 2:52 pm

#206 BlackDog on 03.24.16 at 2:43 pm

Ghomeshi is creepy. Where there is some there is fire.

But his accusers, liers. Motivation I’m going with. Dumped revenge syndrome.

#209 boris beckoner on 03.24.16 at 2:58 pm

Garth

The feds secret plan is to use foreigners to fund the underfunded pension plans……by getting them to buy overpriced RE from millenials…..the feds let this go on for 10-15 years before moving in with restricti\ons, collapsing the market, and letting the younguns get back in on the ground floor…the only losers are foreign investors, so before everyone bemoans these poor Chinese investors, woe betide the fate that awaits them on the rocky shoals of canadian RE

#210 boris beckoner on 03.24.16 at 3:00 pm

sorry I meant baby boomers not millenials

#211 Smoking Man on 03.24.16 at 3:01 pm

BlackDog said

Sadly, the vast majority of sexual assaults do not get reported and few of the ones that do result in a conviction. The outcome of this high profile case will likely result in even fewer assault victims coming forward. This is sad for Canadian women and those who care about them.
…….

I agree and i have no problem bringing up daughters with a set of nuts. Make em strong.

But you do it at the expense of your son’s future.

The arch enimy of the feminazis is the straight white male. It’s the rallying point of there hate bonding. Profile convicted rapist. Wait, can’t do that. Might offend another demographic. See how complicated this shit is.

#212 In the business on 03.24.16 at 3:03 pm

#204 BlackDog on 03.24.16 at 2:17 pm
@ saskatoon on 03.24.16 at 12:42 pm
“throw those disgusting women who lied in prison.
give them the max. sentence jian would have got.
MGTOW.”
For a minute, I thought this was a sarcastic comment, but then I realized that there are men who actually think like you. No doubt some of them can even be found in our judicial system.
Anyway, since you are so obviously an open-minded, see the forest through the trees, kind of person, I thought maybe you would find this Macleans article interesting (note the sarcasm):

http://www.macleans.ca/news/canada/jian-ghomeshi-how-he-got-away-with-it/
……………………………………………………………….
#184 Smoking Man on 03.24.16 at 11:37 am
The paradox of insanity = Ghomeshi Trial.
Not guilty on all charges, not only that but the patriarchy judge bitch slaps the liars. On twitter the femanizs are going bat shit crazy, rabid beasts of hate. Man o Man, resist commenting on twitter, this pissed off mob my track you down and string you up and have a public castration ceremony, they want blood and revenge.
Destroying a mans carrier isn’t enough.
So sisters, best entertainment money can buy.
…………………………………………………………………
This is where Smoking Jerk needs to develop his non-educated mind. I have experienced tenure in the business world connected with the CBC and this guy. You have not, so stop generalizing yourself as a supposed expert on him and his accusers you jerk. It was a well-known fact in the industry what this individual did and his malicious reputation preceded him. You should know the facts before you open your enormous polluted mouth and start spouting your trash talk. How would you feel if your daughter was one of these woman? So shut up for once and let those who know what actually happened battle it out in the justice system.

#213 In the business on 03.24.16 at 3:05 pm

#208 Smoking Man on 03.24.16 at 2:52 pm

#206 BlackDog on 03.24.16 at 2:43 pm

Ghomeshi is creepy. Where there is some there is fire.

But his accusers, liers. Motivation I’m going with. Dumped revenge syndrome
………………………………………………………………
OMG your an idiot!

#214 Penny Henny on 03.24.16 at 3:06 pm

Mark’s brother Tay.
http://www.theglobeandmail.com/technology/tech-news/how-microsofts-friendly-robot-turned-into-a-racist-jerk-in-less-than-24-hours/article29379054/

#215 clawback on 03.24.16 at 3:07 pm

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth

I don’t mind, let all the retired people have it equally – I mean, universally. I can support no clawback.

As long as I don’t get labelled a bleeding heart socialist, since we learnt from the previous day’s column:

“People can be as angry as they want, but government will never equalize income. — Garth”

#216 Smoking Man on 03.24.16 at 3:09 pm

#207 Mixed Bag on 03.24.16 at 2:48 pm
#184 Smoking Man on 03.24.16 at 11:37 am

Doesn’t it seem strange that the guy kept documentation that supported him? Years old phone texts and letters? Who keeps that stuff?
Seemed awfully prepared.
…..

I can get my first Hotmail email. Not that hard. The dude admit he likes to ruff it up. So no angle. But this is heading toward changing laws that a woman always tells the truth and men are scum bag liers

Come on in the course of my 35 years of wedlock I would be arrested 100 times and I would have been inocent.

I’ve watched my phyco sister inlaw destroy her x husbands and lovers. And that’s with present day law can you imagine if she has the futer laws femanzis want at here disposable. Yikes

#217 Smoking Man on 03.24.16 at 3:16 pm

My biggest fear in the future? being arrested for descearly peeking at a nice set of yoga paints from behind my raybands in the gyn. Guaranteed the feminazis would love that law.

Wynne is putting up posters like that in gyms I kind you not.

#218 SunShowers on 03.24.16 at 3:20 pm

The room is cumulative. You can use this in so many ways over the course of your life. Why would you not want the tool? — Garth

———————————————————–

Why? Because for every middle class working stiff who wins Lotto 6/49 (or benefits from some other equally rare/unpredictable windfall) and suddenly needs to shelter a six figure wad of cash in 20 years of accumulated room, there will be hundreds of wealthy Canadians who will just use it as a means to move funds from unregistered accounts.

And at what cost? Billions of dollars in foregone government tax revenue (mostly from the wealthy) according to the PBO. Given that the poor and middle class use more government services than the wealthy, it’s easy to see who’s left holding the short end of the stick here.

So what you’re really asking is why average wage earners don’t favor a system that disproportionately harms them, while disproportionately benefiting others.

I think you know why.

Bunk. All dollars going into TFSAs are after-tax. The wealthy have already paid their 50% share. Your lust to tax them again is unseemly. — Garth

#219 pinstripe on 03.24.16 at 3:20 pm

Tax is a DESTROYER of Wealth.

Canada is not immune from the bail-in tactic.

https://www.armstrongeconomics.com/international-news/north_america/canadas-new-bail-in-proposal/

#220 jean on 03.24.16 at 3:21 pm

Thank you Stephen Harper for ruining Vancouver for Canadians. T2, sort this out soon or you will own it too.

http://www.zerohedge.com/news/2016-03-24/chinese-take-over-canadas-real-estate-market-buy-one-third-all-vancouver-homes-sold-

Don’t believe everything you read. Especially there. — Garth

#221 Long Time Lurker Here on 03.24.16 at 3:22 pm

[email protected]·ag·ger·a·tion

troll got ignored.

#222 NTH on 03.24.16 at 3:30 pm

#205 Daisy Mae

When does the clawback begin — $175,000 annual income, or thereabouts? These income earners clearly do not need it.

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth

==========================
Thanks Garth.
==========================

Daisy Mae, what’s your beef?

I’m losing over a million in income in order to stay home until my kids reach kinder. (Obviously that is our choice as parents).

Boo Hoo, poor me, right?
No, not exactly. My first job was at aged 13 and I have worked steady except one year in uni. As a single gal for many years I paid a Very generous slice of taxes and didn’t use govt subsidized social ‘programs’. And No significant tax breaks for me during all those work years….which was fine, I was ‘happy’ as a Canadian to do my part and contribute to lift us all up knowing that if needed I’d be helped out….

I am a self made business professional, I employed many folks and students at a starting wage around $50,000/yr. my work changes lives…blah blah blah. I had my kids after age 40. So do the math. The very least I expect is to be able to income split while on an unpaid leave (no mat leave pay for me) and maybe a few child benefits bucks to contribute to their RESPSs. Am I not entitled to this after ~23yrs of taxes? Isn’t it my turn to have that little lift up? Are my kids entitled to less benefits because their mom did well? My kids deserve the exact same amount as your kid and any other kid in this country and not a bloody penny less.

I make no apologies for being a successful individual. And my kids should not be short changed because their mom worked her ass off!

I never thought I would consider leaving Canada but I’d leave in a heartbeat if the right opportunity came up, and that makes me very sad to say it.

Not Tonight Honey

#223 paul on 03.24.16 at 3:33 pm

#205 Daisy Mae on 03.24.16 at 2:19 pm

#100: “OAS – Old Age Security not Supplement.”

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

When does the clawback begin — $175,000 annual income, or thereabouts? These income earners clearly do not need it.

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth
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The tax money belongs to people like Daisy what does fairness and who contributed it the system matter.
They want it all and they want it now.

#224 Penny Henny on 03.24.16 at 3:38 pm

#100: “OAS – Old Age Security not Supplement.”

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

When does the clawback begin — $175,000 annual income, or thereabouts? These income earners clearly do not need it.

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth

//////////////////////////

You are right. The clawback (ugly word) should start at an even lower level.

#225 Herb on 03.24.16 at 3:51 pm

Of course Ghomeshi is not guilty before the law. That was foreseeable during his lawyer’s cross-examination of the complainants. But his moral and ethical culpability was evident: “Thou shallt have consent before engaging in unusual sexual practices”, and “Thou shallt not take advantage of a superior position when seeking sexual favours.”

His punishment will be paying for a great lawyer and trying to rebuild a career beyond the media in Canada. Beyond that, may he have a hot weekend with Glen Close!

Beyond that, I wish him a hot weekend with Glen Close.

#226 Herb on 03.24.16 at 3:52 pm

Sorry, one weekend with Glen Close would be adequate. Darn tiny netbook screen!

#227 Smoking Man on 03.24.16 at 3:53 pm

#213 In the business on 03.24.16 at 3:05 pm
#208 Smoking Man on 03.24.16 at 2:52 pm

#206 BlackDog on 03.24.16 at 2:43 pm

Ghomeshi is creepy. Where there is some there is fire.

But his accusers, liers. Motivation I’m going with. Dumped revenge syndrome
………………………………………………………………
OMG your an idiot!
…….

Thank you, being an admitted idiot gives you a lot more leeway to be creative with the key board.

You don’t have to live up to expectations of a smart person.

Long live the idiot.

#228 randman on 03.24.16 at 3:54 pm

In the business

Leave smoky alone…everything he said about
Those lying ***** is true

You are nothing but a feminist white knight orbiter

Men like you make me sick…pathetic

#229 Vamanos Pest on 03.24.16 at 3:58 pm

#195 specifically benefit the YOUNG

I appreciate your argument, but I feel like you’re still not seeing how the earnings difference between old and young is irrelevant the TFSA discussion. (Maybe you do get that and just disagree, and that’s cool)

I just wanted to give you an example to show what I mean:

One 55 year-old, one 25 year-old. Both retire (and therefore stop contributing to the TFSA, and start drawing on it) at age 65. To reflect the earnings difference, I’ll give the 55 year-old TEN TIMES the contributions of the 25 years old. (for the sake of argument, we’ll give them equal returns on the money, and since it’s Garth’s blog, we’ll make that return 7%):

55 year-old:
contributes 5000 per year for 10 years, totalling 50k
at retirement, he has $74,000, and was spared taxation on $24,000

25 year-old:
contributes 500 per year for 40 years, totalling 20k
at retirement, he has $107,000, and was spared taxation on $87,000

So you see, my argument that it benefits the young more than the rich is not at all theoretical.

Even when a 10:1 per year contribution is taken into account , the math clearly shows dramatic benefit for the young poor guy vs the old rich guy.

(Note, in the example, the 55 year-old basically maxed out the program, he couldn’t really benefit any more in that time frame than he did. Meanwhile, if a 25 year-old contributed $10 per week he would contribute MORE than we used in the example, very doable, even for the tough economic times that real-world 25 year-olds are facing)

#230 Entrepreneur on 03.24.16 at 4:01 pm

Agree with #181 Ernie “no money, don’t fund it”…this controls the deficit spending like there is no tomorrow.
The government should follow that rule of thumb because “tomorrow never comes.”

Also agree with some points #160 broader mind…think about it, if the population does not grow (Italy, Canada, etc.) does it not mean that the controlled system got it wrong. Not all can be doctors, teachers, civil servant. Big stores, fast foods, casinos (revenues) can only hire so many people. The rest of the people are on social assistance or retired if, and only if, qualify. What about the rest!

But does this all add up to control thoughts, thinking (or not thinking) about votes, about government corporations which is happening now but the real challenge is have everyone working to their own style, pace, needs which some will develop small business attitude. Right now that spirit is dead. Much easier to have homeless, to have social programs, to control the mass.

It is time to think productivity from a more personal level in one’s own nation. Build from the bottom up and the strength/pillars will be strong.

#231 jess on 03.24.16 at 4:04 pm

Only one-third of all deaths worldwide are recorded in civil registries along with cause-of-death information.
http://www.who.int/mediacentre/news/releases/2014/world-health-statistics-2014/en/
==================
http://www.worldometers.info/

#232 45north on 03.24.16 at 4:16 pm

Donald Fung: Hey, I’m Chinese and we don’t think exposing foreign citizens from China is going to insult all Chinese people or create a race war.

Stop treating us like we’re delicate flowers Garth.

hey I’m not Chinese and they are not delicate flowers. Don’t be insulted on their behalf.

#233 Vundo on 03.24.16 at 4:35 pm

#218 Garth: how “seemly” was it every year prior to the introduction of the TFSA that those after tax dollars invested outside RRSP’s were “taxed again”?

Fact is, most working class people with no winning lottery tickets and no inheritances will be taking tens of thousands of contribution room with them to the grave. They do not now and will never ever have anywhere close to the maximum amount to contribute once rent, utilities, and groceries are paid for. The limit could be one trillion per year and it wouldn’t make a difference to them at all. You don’t think $200k per year is rich, but the people I know trying to get by on 10% of that sure do, and they vote. There is no rational reason for them not to be happy with the 5500/year limit.

Most people don’t utilize RRSPs, dividend tax credits or capital gains breaks, either. Most people don’t budget, save or invest. Most people have debts because they consume more than they earn. You have no argument. — Garth

#234 Doug in London on 03.24.16 at 4:46 pm

So 9,000 people in Canada retire every week you say? Wow, that’s the best news I’ve heard in a year if not longer! Why? Some of those 9,000 retirements should translate into jobs for all those unemployed or underemployed Millenials. How could that be a bad thing?

#235 Industrial Guy on 03.24.16 at 4:48 pm

“THAT’S WHY TRUMP NEEDS IN. WE NEED A WORLD LEADER WITH A BUSINESS-ORIENTED MENTALITY.”

Hogwash ….

The goal of business is PROFIT. The Goal of Government is providing services for its citizens and protecting them the rapacious excesses of Capitalism.

Trump followers live in denial. They’re chants of “Make America Great Again” reminds us of an earlier time in US history. Herbert Hoover boasted that his policies would provide, “A chicken in every pot and a car in every garage”. Hoover’s reliance on a conservative business-oriented approach that stressed voluntary efforts by Americans rather than governmental support of the economy did little to end the Depression. His protectionist policies (yes Mr. Trump) caused trade wars which actually worsened the situation. It’s everyone for themselves.

Trump’s Foreign Policy is a hyperbolic version of the “Cold War”. It’s us or them. Who, might you ask is “them”? … Well, it’s ISIL and Mexicans, China this week ……. and basically anyone who isn’t us next.
No one seems moved by Trump’s inability to substantiate his claims. He’s the reincarnation of Tail Gunner Joe McCarthy. America needs enemies and they’re more than willing to make them up along the way.

His plan to export twelve million undocumented workers will have many unintended consequences. First, let’s be honest. This plan to deport all of America’s undocumented is logistically impossible. Just like Trump’s 20?, 30? or 60 Ft. wall along the US / Mexico border.

Want a preview? Read about the raid on the Agriprocessors slaughterhouse and meat packing plant in Postville, Iowa. Imagine if this example of the mindless adherence to political dogma is repeated across America. To quote Stephen G. Bloom, a University of Iowa journalism professor. “The problem is, who is going to do the work? This is a no-win situation.”

http://www.huffingtonpost.com/marielena-hincapie/what-shameful-postville-i_b_3260518.html

#236 espressobob on 03.24.16 at 4:56 pm

The Gomeshi trial just proved to be a witch hunt. What a waste of taxpayers dough.

It seems our sense of justice regarding rough sex just received justification by being consensual.

His accusers proved that.

#237 paul on 03.24.16 at 4:59 pm

#224 Penny Henny on 03.24.16 at 3:38 pm

#100: “OAS – Old Age Security not Supplement.”

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

When does the clawback begin — $175,000 annual income, or thereabouts? These income earners clearly do not need it.

The clawback begins at an income level of $73,000. The questions are, do we have universal social programs, or not? Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth

//////////////////////////

You are right. The clawback (ugly word) should start at an even lower level
———————————————————-
I think it should go UP as per your tax bracket when you worked and paid 35/50 % of your hard earned money
so some slug (ugly word)could eat!

#238 SunShowers on 03.24.16 at 5:10 pm

Bunk. All dollars going into TFSAs are after-tax. The wealthy have already paid their 50% share. Your lust to tax them again is unseemly. — Garth

———————————————-

Yes…the principal investments in TFSAs are after tax, but the growth obviously isn’t. Which is why the multi-billion dollar hole the PBO mentioned came from growth which WOULD have been subject to capital gains tax if held in an unregistered account instead of a plumped TFSA.

Since I’m positive that you knew that already, am I to understand from your “tax them again” rhetoric that you think capital gains in unregistered accounts should be entirely tax free as well?

But I’d say it’s your lust to hamstring government services to the majority of Canadians in order to financially enrich the already wealthy minority that’s unseemly.

#239 Robert on 03.24.16 at 5:15 pm

#220 seems the story has grown legs, now CTV has joined the chorus. http://bc.ctvnews.ca/one-third-of-metro-van-real-estate-investment-from-offshore-report-1.2831308. 33% of sales in YVR are offshore foreign money; sounds bubblicious to me. Pretty hard to be master of the house when the houses belong to foreigners. Worse still for young Canadians who must compete against foreign money to find a place to live and work.

The report is bogus. — Garth

#240 Danny Samuels on 03.24.16 at 5:15 pm

People today can’t make things easier for themselves. It is not difficult to have a decent nestegg in 25, 30+ years.

This is an easy way t do it but most will not because they have no discipline and brains to do it.

Each member of your family do this. First put $105 a week into savings, Second put $105 a week into RRSP’s, Third, put $105 a week into TFSA’s.

You can easily achieve 4.25% to 4.5%+ returns in mix of 25% in corporate bond ETF’s, 25% government bond ETF’s, 25% equity ETF’s and 25% REIT ETF’s.

Do this for the next 30 years or so and you will each have each about $1 to 1.1 million dollars.

ORPP, C.P.P, OAS, GIS and all the other government retirement pension plans are not going to do much for you.

#241 Ronaldo on 03.24.16 at 5:16 pm

”Should the people paying the highest taxes, contributing the most to these programs, receive nothing? — Garth”

No. But I know many people who are in the highest income category who give back more than the OAS both in money and time to good causes which include hospital charities, crippled children, battered women’s societies, red cross, salvation army and many more. I know that you yourself Garth fall into this category. Those people who fall into the category that receive these benefits from other than the government need to think about that before they start whining.

#242 Ronaldo on 03.24.16 at 5:24 pm

When governments start targeting the highest income and wealthiest of individuals to fund their hairy fairy programs need to understand, if they are even capable of that, is that they may be putting those charities who rely so much on donations from these sources in jeopardy. Even the highest income earners have limits on what amounts they have to contribute to these charities. If you keep stealing from them, someone else may go without. Think about that Mr. T and Mr. M.

#243 espressobob on 03.24.16 at 5:50 pm

Loading up in ones TFSA with after tax dollars is
a no brainer. It’s what an individual does with it that matters.

This is no space for GICs, High interest, or even mutual funds.

Look to ETFs with global exposure and don’t invest short term. Buy even when fear fills your veins.

Think long term. And study the subject!

#244 Renter's Revenge! on 03.24.16 at 5:56 pm

#238 SunShowers on 03.24.16 at 5:10 pm

“But I’d say it’s your lust to hamstring government services to the majority of Canadians in order to financially enrich the already wealthy minority that’s unseemly.”

I don’t think that’s a fair accusation. Surely there’s room for debate on how much the government should provide for its citizens. However, I imagine most people who want lower taxes would like to see the government cut back on wasteful spending and vote-buying before cutting back on essential services. Ideally the government would be run like a public corporation, accountable to its shareholders (that’s us), and run as efficiently as possible. The problem is that the government has no competition, so there’s no pressure to reduce costs. Combine that with the power of taxation and you have runaway deficits and ever increasing taxes. Plus, as long as they target “the rich”, they’ll always have the majority on their side. Just wait until you have some success in your life and they come after you!

#245 Sayed on 03.24.16 at 7:12 pm

Just an Opinion: I am not taking any responsibility for my opinion (judge yourself): However, if house prices really increase then buying might make sense as well (provided you have enough money to dispose and enough money left for enjoying other aspects of life) . if you have too much money to dispose then money does not matter to you anyway better enjoy the house and enjoy your life. However, if you do not have too much money to dispose and you are only buying so that you will have profits by selling then you have to be careful (careful in purchasing and careful about your money need). Just by regularly saving the difference between rent and monthly house expenses (mortgage, utilities, taxes, insurance, repairs), you will be able to save a lot in 25 years (do the math). Even if you keep your money in GICs or Market Linked GICs, you might be able to beat inflation by 50% or by 25% or by 100%. And if you can invest in Index Funds preferably ETFs (or low MER mutual funds such as TD E-series or Tangerine Funds) – there are good possibilities that you can gain 4 to 10%, conservatively 3 or 4% (over a long term to be safe) on your money. and your money is always available to you in your emergency though you need a discipline to save money and protect; yes, more discipline and hard work required if you invest.

#246 Linda on 03.24.16 at 7:59 pm

#111 Millmech – where do you get $20,000 per person from the government? IF you are counting maximum CPP, OAS & GIS, all I can say is, not so fast. First, very few people get maximum CPP. First you have to wait to age 65 & not take it early, or it gets reduced. Take it at age 60 & that is a 36% hit off the top. Second, you have to have contributed the maximum CPP for 39 out of 47 years between ages 18 to 65 to qualify for maximum CPP. How many people do you know who have a) worked that long & b) paid the maximum CPP contribution for all that time? Third, GIS is only given to those who qualify. If you qualify for GIS, you are highly unlikely to own a property worth $500,000 unless you inherited it. People who get GIS are below the poverty line, which is how you qualify to get it in the first place so this is not exactly a benefit you want to qualify for. Fourth, OAS gets clawed back if your income exceeds a certain amount. It is a pretty high amount so most people still get OAS but – just like CPP there are some rules. In order to get full OAS you must have lived in Canada at least 40 years after the age of 18. So if you’ve lived out of country for any extended period of time you may not receive ‘full’ OAS. Further, OAS is not a contribution set benefit like CPP, so the government could change the rules at any time so that those who think they will get OAS won’t. Certainly my financial planner told me not to count on getting it. Finally, don’t count your house price chickens before you have the payment in hand. At some point this house of cards will come down & those who thought they’d cash in big time are going to be sorely disappointed.

#247 Ronaldo on 03.24.16 at 8:07 pm

”Bunk. All dollars going into TFSAs are after-tax. The wealthy have already paid their 50% share. Your lust to tax them again is unseemly. — Garth”

Double bunk. The ignorance of people when it comes to TFSA’s is mind boggling.

#248 The Lazy Taoist on 03.25.16 at 10:24 am

Garth, you really ought to run for PM. I would vote for you. No selfies please.

#249 Sarah on 03.25.16 at 1:03 pm

Why don’t you run for office Garth? You’d have my vote.