Recall the shocking numbers reported here the other day? You know the ones. Four in ten Toronto homebuyers with million-dollar houses have debt equal to at least 450% of what they make, and a majority are now taking 30-and 35-year amortizations. Why? Presumably because they can’t make the payments with typical am periods. Classic house-rich and cash-poor.
So if house prices drop, the debt doesn’t and they’re screwed. This is financial illiteracy at its core. It’s now epidemic. What, oh what, is a government to do?
A good start would be to do the opposite of the plan the feds and provs came up with Monday night. As you may have heard, the CPP’s just been diddled. Starting in 18 months, everyone will pay more in premiums for benefits that do not fully increase for almost a decade. The average monthly surcharge will be about $35 and the maximum pension benefit will increase $330 a month. Of course, most people don’t collect the full amount, but only 60% of it. The max the public plan will pay is $14,000 a year, starting in 2025. The average payout will be about $9,800, or $815 a month.
Why is this a largely useless exercise?
Well, business hates it. Employers must match every dollar an employee puts into the CPP and receive no benefit for doing so. With a torpid economy, groups like the Canadian Chamber of Commerce say this extra grab sucks. Additionally, contributions now stop after an employee earns more than $54,000, but that ceiling is jumping all the way to $83,000. Says the Canadian Federation of Independent Business: “This is a devastating move for Canadian workers and the economy in general.”
But the real Achilles heel comes with this statement from our finance minister, Bill Morneau: “We have come to a conclusion that we are going to improve the retirement security of Canadians, we’re going to improve the Canada Pension Plan that will make a real difference in future Canadians’ situations.” What a load.
The max CPP now is $13,110 a year, but the average person has been collecting just $7,128. With the changes “that will make a real difference in future Canadians’ situation” the max will be almost $17,000, and the average $9,730. That’s $810 a month. Add in the OAS (at age 65) of $570, and the average annual pogey income becomes $16,560 (although it’s a safe bet the Old Age payment will be a bit higher in nine years).
So by saying this will “improve the retirement security of Canadians,” Bill and his provincial buds (all with defined benefit public pensions) are sending out a false message. Thirteen hundred bucks a month ain’t enough to retire on unless you’re a Chia Pet. This isn’t security. And don’t pretend the extra makes “a real difference” to anyone except (maybe) the destitute.
Meanwhile these same guys slashed the TFSA contribution limit by half, forever gutting the most effective, potent retirement-financing tool young working Canadians could hope to have. At the same time, the T2 gang is busy adding at least $120 billion in new federal debt over the course of just four years, money which will increase overhead and taxes, put upward pressure on future rates and hamstring subsequent governments. Suck. Blow. It all goes to the left-leaning view that individuals should be looked after by the state, instead of encouraged to do so themselves. This is how countries like Norway and Denmark got a 25% GST rate, plus high marginal tax.
Is there any good news? In Ontario, yeah. This means the end of a costly, duplicating parallel provincial pension system which already has a multi-billion-dollar admin in place headed by a public servant pulling down $500,000 (Saad Rafi). Ouch.
Anyway, here’s the new government pitch to people who borrow an $800,000 mortgage and use 100% of their savings to buy a house they don’t need and will never pay off: relax. We got your back. Invest in a hot tub and a Wolf six-burner. Use your TFSA, if necessary. This retirement thing is handled. Honest.
Some days I’m happy to be an old dude. What’s coming will be epic.
Now, speaking of the financially-challenged, I’ll bet you didn’t know we have a national Financial Literacy Leader. Well, we do. Her name is Jane Rooney and she’s currently seeking “influential individuals” to join the National Steering Committee on Financial Literacy. To be appointed you must be taking action “to strengthen the knowledge, skills and confidence of Canadians to make responsible financial decisions.” Like this blog, of course, which uses ridicule, public shaming, condescension and questionable language suggesting sexual deviance in order to improve math skills.
Feeling like a nomination? Then go here. By the way, gender parity counts, says Jane. Dress accordingly.
217 comments ↓
Ya know Garth there is a growing trend towards removing comments, perhaps you should join the trend?
I don’t think they add anything
This one doesn’t. — Garth
“So if house prices drop, the debt doesn’t and they’re screwed.” – Garth
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Wrong! Everybody is screwed. T2 will attempt to bail them out and everybody will pay. Current and future generations. The national debt means nothing to him. Or to any other leader of today’s world.
Finally a photo of Smoking man.
On that note I’ve been lunching at Duke of Devon patio past few days. Sun day, fun day
Yes, we are pooched, I was most disappointed to hear the news. Garth, love this post, it’s right on. I just feel sorry for my children and grandchildren.
M66MB
I was wondering…
If Vancouver has such a crazy market where houses are sold for 3-6 mils, and there are a lot of them sold and bought, where all this money come from? Me and my wife have a combined income of 180k. I consider it a good income even for Vancouver. And when asking what mortgage we could take, the advisor said about 1 mil. What income should the people there have to buy houses over 3 mil considering there are a lot of them sold? What’s the income there? Since a family cannot obtain a mortgage of more than their income is allowing them… To be honest, to me it looks like money from outside, since it’s impossible for even a family with 250k income to buy a 2-3 mil house there…
And just when you thought things could not get any more “unreal”…
And what is the new net CPP, combined CPP and OAS adjusted for inflation (not gov’t numbers but reality as in the real world in which us humans live) in 5, 10 years down the line?
Your right Garth…At 55 in time like these I wish I was your age.
All hail the gov’t “helicopter” money!! Paid for, in full, by current and future generations…Yipppeee!
Would be a lot of fun for all of us to take 10 mins to complete the application.
Perhaps Mr. T could award prizes for most original, most sarcastic, most likely to have photo op with T2, most suck up, most truly helpful, etc…
Epic meltdown in Canada coming to a neighbour near you ( or perhaps you). Twenty years ago I was almost bankrupt – just a horrible place to be, stress was off the charts. Today thank gawd I have very minimal debt and a good cushion. People caring so much debt are going to have one hell of a hangover when TSHTF
#52 Tiger “if house prices in Canuckistan fall 35% (as they did in the US – which would take us back to only late 2014 pricing in YVR) – Garth
That’s still will be 1 million for a crack shack in YVR.”
That’s true, BUT while the asset would only go down $650,000, the $650,000 debt (loss) would remain and have to be paid off with interest, selling, property tax and maintenance fees.
Q. How long does it take to recoup a loss of 35%?
A. 8.9 years at 5% growth a year (if you don’t put in another cent). That’s a long time.
Q. How long does it take to make $700k after tax?
A. 11 years of working. (avg Van/TO income 80k/yr is after-tax income is $63,067).
Resources:
http://www.bpadvisors.com/wp-content/uploads/2010/11/chart66.png
https://simpletax.ca/calculator
So aside from thinking Trump can’t win, rates won’t go negative anywhere except where they already are, and that Canadians aren’t saving enough for retirement but forcing them to save more in a low cost plan with longevity protection is a bad idea, any qualifications?
To be fair, you’re almost old enough to remember the last time we saw deflation, so there’s that.
Oh man, are we ever in trouble! When this real estate bubble bursts, it will be epic. There will be financial devastation to so many! I went out for dinner the other night with friends and they were all sharing their bidding war stories with glee (as many eventually one them by paying way too much for their slanty semi’s). I also went to the doctors the other day and the doctor started up a conversation about real estate. Too many people drinking from the FOMO well. I am so glad I sold, made a small fortune and I am happily, gleefully renting!
Stupid YVR RE story of the day…
http://www.ctvnews.ca/business/why-vancouver-parents-are-buying-condos-for-their-young-kids-1.2954707
In fairness, at the every end it points out this is hardly typical, that only 0.1 percent of parents could afford to do something so {choose: pathetic / dumb / clueless / delusional}. Alleged total per article: 5.
But how many will read beyond the headline and maybe the first sentence or two.
Not ready for the war cry on CPP premium increases and TFSA reduction myself.
The middle class is disappearing, workers wages have stagnated or declined. Once safe careers are now sitting ducks to ” The Wrath of Internet and robots.”
This is a tax on the working parts of the economy. The broken parts are “F-35’d” and I don’t think anyone thinks it’s going to get better before it gets worse.
I can live with poor people having a few more dollars in their old age .
I can also live with wealthier people paying taxes on 5 k of money that is no longer sheltered.
These changes are not a big deal to me. Economic poo is coming down the pipes and the right government is at the plate.
Taxi!
The TFSA is not for ‘wealthy’ people. With a standard contribution limit based on residency, not income, it is the most egalitarian way of allowing lifetime wealth accumulation by all. Any young person not seeing that is a fool. — Garth
I used to think that the “Left, Liberal Nanny-state” was a figment of knee-jerk neo-conservatism. Between Wynne’s draconian plan to abolish carbon, and force everyone in Ontario to go electric, and the Federal plan to raid my retirement plans to pay for someone else’s, I’m ready to admit that I was wrong.
Now that the Conservatives are showing signs of Progress, walking sufficiently upright that their knuckles occasionally clear the sidewalk, they’re starting to viable again.
Hopefully they don’t waste that sentiment by choosing another regressive leader.
thanks for the cpp info garth
i have been following an old sages advice on things for
awhile now…
whatever the guys/gals with expensive suits and haircuts tell you whats good for you…
do the complete opposite.
Yo, those with FOMO, just repeat this mantra
FOMO-NOMORE or if your rash is really bad, chant
NOMO-FOMO. Say it as loud as you can and as often as necessary.
If your thinking, I got FOMO oh, it’s really bad, just remember the mantra.
I’m old, rich and happy.
Take a sniff, that’s what a lot of money smells like.
If you want my number, sorry I’m taken.
I entered your name, started reading the form, and bailed. More paper pushing, discussions and meetings.
three (3) rules of bdnz:
-Invest in yourself first: get educated, do some testing. (Get burned)
-Remember, you’re dealing with people–they’re as fickle as the wind. (Mostly idiots)
-Buy low, sell high. Stick to time proven supply and demand. (Pharma, vices)
I’m free and clear, off grid, with 100 years of property tax in various denominations. I also learned the art of the con, and apparently receive divine messages. Practice in a mirror is crucial… for the con part. Show interest in a lythe nursing intern early. I recommend a grouchy curmudgeon pitch to find a real bleeding heart. Watch Eastwood in Gran Torino.
Garth, For wealthy people, what incentive is there to ever pull out money out of their TFSA? It seems like it just goes in there like a black hole and why take anything out if it can grow tax free? Seems a bit hard to understand. Seems like it is a last resort for personal finance. Only pull money out there if you are on your last legs!
When TFSAs contain a significant amount they’ll be capable of throwing off a retirement income stream which is 100% non-reportable. Priceless. — Garth
#1 No Comment on 06.21.16 at 5:01 pm
Ya know Garth there is a growing trend towards removing comments, perhaps you should join the trend?
I don’t think they add anything.
…
And yet, somehow compelling, ne c’est pas?
“This is a devastating move for Canadian workers and the economy in general.” – Canadian Federation of Independent Business
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What a load!
Also this cpp increase helps guberments reduce public pensions obligations by getting us slaves to pay more so teachers and guberment workers maintain fat payouts. Where’s the exit again?
Things are going from the “silly zone” through the “you’re crazy zone” to… “Are you kidding me, that’s Financial Suicide!!” Real Estate can kill…should be the warning!
I can’t comment on this anymore, it is way past bizarre!
If you are over 60, with RE DEBT, and less than at least 600K in liquid money, AFTER paying off your RE DEBT… consider selling NOW if you are in one of the hot pockets for RE prices.
If your RETIREMENT is IN your home, sell now, and rent until you do retire!
Renting is easy, especially closer to where you would prefer to retire. Think away from kids, high costs.
I think the price corrections will be fast, furious, and you will never see these prices in your lifetime come again.
Great Fool… Indeed!
As for the current leadership in Canada, as well as the would be new leaders here, both CAN do better. Hard to undo Stupid, but not impossible.
M64WI
#14 Conan
Adapt to the new reality. If robots are taking jobs, be creative and do things robots can’t. The reason the middle class is disappearing isn’t because of robots or good jobs going overseas. It’s because the middle class spends too much money on garbage. Generations before never consumed at the same level. It’s supply and demand. If you’re willing to buy junk, someone will make junk. It only difference is that the junk is make overseas!
This CPP move is deceptive: theft from the young who are brainwashed to think this is good: come 2020-2025 the average person will have at least double the property tax, user fees to pay and mortgage rates are very likely to be higher further sucking any take home pay that will shrink even further
This higher CPP is robbery. The politicians are setting the groundwork to use public pension money to “invest” in overpriced infrastructure projects which enrich a small number of government cronies who make a fortune
Also when the sovereign debt crisis gets here within 3-4 yrs governments will raise taxes in dramatic fashion and might even try to force public pensions to buy government bonds as the bond market requests rates the govt cannot pay – it is a mathematical certainty that most governments will see interest consume more than 50% of tax revenues within 10 years
Lastly raising the CPP is a partial bailout of public service pensions as raising the CPP reduces the benefit paid by the public sector DB plan- this is a backdoor bailout of seriously underfunded corrupt public pensions
If you can plan to become self employed and pay yourself dividends from a corporation
These neoliberal scum will not stop until all of our income has been siphoned off for interest, insurances, fees, taxes
Very bad day for wage earners – govts always default
JO
DELETED
I read the news today. It said ‘spend it all, T2 has your back!’ CPP is getting buffed! Well, that is how most Canadians. Business will read it as ‘time to outsource mor jobs to india/china’ 1%ers will read it ‘time to relocate to better tax spots and telecommute’.
Globalization and computers will eliminate the need for people to live in set geographic areas, so the future will have displacement. If I can make more and get taxed less, I will do it. What is holding people to this ever growing tax system, and why would anyone drop over 1 million for a prison of a mortgage unless they are speculating on home value growth.
This makes every home owner a speculator in one sense or another. You wouldn’t own a home in this market if you weren’t speculating on future returns. It makes no sense with the rent payments so low.
#14 Conan
TFSAs actually benefit average people more than they benefit the rich. It takes less pre-tax dollars to make the contribution on an average income. Moneysense debunked this myth in one of their issues. The problem is that everyone went all out on a house and don’t have anything left for saving and investment. Not that it matters anymore. ZIRP and NIRP are destroying the whole financial system.
God forbid we aim to increase the financial security of Canadian seniors. After all, we all have stable lives, the same skills, and are all working at six figure income jobs right Garth?
That a boy, Garth!
I thought you’d left us.
So let me get this straight:
– If I neglected to invest prudently for my future,
– If I poured all my income into a primary residence
– If I sell my paid-off, west-side Vancouver home for a Million dollars, (or two),
– If I then quit working and live off that windfall,
THEN:
– I won’t pay a cent of the increased CPP premiums,
BUT:
– I will collect an enhanced, monthly CPP benefit.
Sounds like those that are already wealthy are going to get wealthier, while those that have to work for a living pay for it!
Garth,
Are your personal clients as clueless of the benefits of the TFSA as some of the people commenting on this blog…?
I have no clueless clients. — Garth
As long as the Canadian banks keeping increasing their dividends by say 3-5% annually, I’m happy.
All major policy decisions should be decided on by a referendum. That way any hair brain ideas by idiot politicians can be crushed by we the people…
Please join the National Steering Committee on Financial Literacy Garth. Canadians need the tough love you dish out.
They also need to learn more about entrepreneurship.
The one asset strategy is almost as risky as the one source of income strategy of a JOB.
Globalization has made it so much easier to generate an income online and more people need to learn how to take advantage of this opportunity.
Gawd. They could have just left the TFSA limit where it was and been done. Said: “Children, please remember to save.” Instead we’re going to make it more unattractive to do business here, and people are really not going to be any better off in retirement. At least Wynne’s plan gets nipped in the bud. Cheers to small victories.
What’s next, grey apartment blocks for everyone?
The way I see it the reduction in TFSA room just means more money going into RSP. This is only a problem for the people who already max their RSPs and the people who advise them on investing. For these advisers, they just lost big income.
I agree that the TFSA is very Rock and Roll. But, dollar for dollar, it costs the government more to allow the TFSA then the RSP. That is why it got nerfed.
The big question is does the TFSA get nerfed again and again until its gone?
“This is a devastating move for Canadian workers and the economy in general.” – Canadian Federation of Independent Business
———————————————
What a load!
Found the wage slave
The main thing to ask yourself. Would people do any better than the CPP. Some might do better, but the majority wouldn’t. CPP is better than nothing, and nothing is what they would have. I’d rather complain about EI, assuming I reach 60 or 65 years at least I get to claim CPP. I’ll never get EI.
Kilt.
You invest in the CPP for 45 years. You die around age 65. You family and Estate gets NOTHING but $2500, no even enough to bury you. Canadians are not only Cowards, they are STUPID too. Except Government Workers, they get a gold-plated Pension for their Estates when they die.
Another kick in the groin to help pad the Boomer lifestyle. Maybe they should be cutting the generous public sector pension plans instead. Must be nice to have a fat DB plan straight out of high school.
#26 JO,
The changes to CPP are all about relief to the public sector pension plans. One way or another we’ll all pay to ensure no public sector pensioner gets a reduction in benefits. It’s just a back door way for the government to subsidize the plans. Do you really think an extra $3000 a year (in ten years) in CPP will make a bit of difference keeping a senior who needs it out of poverty? This type of hootenanny is why the Liberals will never lose another election in Ontario. This is also why outsourcing to India, China and Europe keeps growing.
#3 TurnerNation on 06.21.16 at 5:08 pm
Finally a photo of Smoking man.
——————–
Comment of the year!
If Brexit goes through then could Britain join Canada for a new 21st Century style Power Alliance?
Are You Ready?
https://www.youtube.com/watch?v=pC6GStFNR8g
Any time the government sends a check, whatever the reason, it’s a good day.
When I was a young chick, the kids monthly Baby Bonus was appreciatively received and then deposited & invested.
Now that I am a semi-old chick, my husband’s CPP check is treated the same.
Very happy to receive!
Get a kick out of returning empties though too…..
#11 ROTFL on 06.21.16 at 5:27 pm
…rates won’t go negative anywhere except where they already are, and that Canadians aren’t saving enough for retirement but forcing them to save more in a low cost plan with longevity protection is a bad idea, any qualifications?
________________________________
Bravo, exactly what I was thinking. The only thing missing from today’s blog was Garth waving his cane and screaming ‘get off my lawn!’.
With the upcoming changes to the CPP, does it make even more sense to start drawing the CPP as early as possible?
I work 50 hours a week and put the maximum in my RRSP’s and TFSA’s, $250 and $105 a week respectively.
My RRSP income tax refund of $100 a week goes into a non-registered investments. I am 24 and already have $100,000 RRSP’s, TFSA’s and non-registered investments.
The C.P.P. scheme is a joke and waste of time even talking about it.
I would not buy house as this will end badly. I rent and have more than enough room with 1,250 square feet.
#5 John
Before you join panic squad by pinning the blame on illustrious “outside money,” consider this: many buyers of those 2-million, 3-million and higher houses are insiders: move-up buyers and speckers (from here, not abroad!). If they bought cheap enough a long time ago, they can use their equity to buy more (and more expensive) properties. Think about it…even those who bought a condo at $300,000 currently valued at $650,000 will have a considerable downpayment if they are cashing out now.
It’s the one-asset strategy that Garth has been croning about. It works great while prices are climbing (well sort of…most mover-uppers just accumulate more and more debt until the whole thing blows or they die of heart attacks from the stress of a possible negative outcome), and when prices fade they’re usually just left with an ugly, undervalued home and a huge debt load.
re: And don’t pretend the extra makes “a real difference” to anyone except (maybe) the destitute.
that is exactly the plan, the middle class will take care of the poor while corporate taxes are reduced to compete with Viet Nam for example
Do you have any feedback on Janet Yellen’s statement to congress today?
It looks like an excuse for more delays in the hike of rates.
@#44 Cloudy
“Comment of the year!”
*******************************************
There’s still 6 more months til Christmas……
A message to you who overspend and believe your SFH in the suburbs is a wise investment, please leave us old, rich, good looking bald guys alone, we are happy.
#44 Cloudy on 06.21.16 at 7:17 pm
#3 TurnerNation on 06.21.16 at 5:08 pm
Finally a photo of Smoking man.
——————–
Comment of the year!
…………………………
Damn no privacy the internet anymore, My side profile is better.
Ha
About the CPP boost. Useless, to darn close to it.
Why goose the employee $35 extra a month, and is employer the same ($70 a month X 12 months = $840 per annum, per employee.
MOST employees would be far better off pitting $840 a year into their TFSA (without the gov’t help, or prodding).
After a lifetime of work it is not going to make you “rich” but could help make you feel more comfortable.
Here in the states we pay social security, both the employer, and employee at a rate of 6.2% up to $118,500 per year.
Oh, add in a medicare tax of 1.45% for each (employee & employer) on earnings over $118.500 per year, no maximum. So, Mr. Self-employed 12.4% + 2.9% now you can pay Federal and state taxes.
Yeah social security pays more, but we paid heavily into it.
Our TFSA limits are similar to yours. Our RRSP is similar, but we can split no income, that’s a nice touch!
Both governments tend to screw their people.
Most Americans would feel rich if they could retire with $1,300 coming in monthly. The standard of living is way too high in Canada but that will change in the future. The CPP will likely go insolvent soon in the future due to terrible investments, negative interest rates, a falling birthrate and rising unemployment. Take your CPP as soon as is possible.
#41 Randy
Very good point!
#23 joeblow
Also this cpp increase helps guberments reduce public pensions obligations by getting us slaves to pay more so teachers and guberment workers maintain fat payouts. Where’s the exit again?
An idiotic post to be sure, but you’re almost there. It isn’t about teachers and government workers (educate yourself about how their pension plans work) but it is about reducing GIS and other benefits and shifting the costs onto workers and employers.
The “exits” are to the south, east, and west of us. Don’t let the door hit you on the way out. Maybe “Brazil expat” has a vacancy in his razor wire enclosed enclave.
The Liberals read the headline that Danes were the happiest people in the world. Thus they came to the conclusion that if our GST could just increase a trivial amount, to 25%, we could compete as the happiest nation on earth?
I love my TFSA, but it’s probably because it’s full of money.
Here is some advice to you youngsters, don’t spend more than you make and a SFH in Milton on a 32 by 85 foot lot, is not a wise investment.
Just sayin’
Brexit / Euro 2016.update.
Well it was Super Tuesday at the tournament today with a few teams punching their ticket and a few bowing out.
Billybobs Turkey took off the park brake and beat Brian Ripleys Czech Rep.
Turkey could make it through depending on other results but it is goodbye to Brians team.2-0.
Common Senses Germany stopped picking on Janet Yellen long enough to dispose of Gut checks plucky Northern Ireland to cruise into the next round.
Just like Billybob ,Gut check will have to wait on other results. 1-0
Next up Jimmy once again got his wish to be first,when his team Poland beat the only team not to score a point OLCs Ukraine,they were disappointing and cost me a beer as I switched him at the last minute to accommodate NoName. 1-0
In the last game of the day in an upset Croatia made NoName proud by beating Crowdedelevators Spain but both teams are comfortably through to the round of 16. Score 2-1.
Regarding Brexit the bookies Ladbrokes have made no adjustment since yesterday keeping it at 76 Stexit/ 24 Lexit.
The Telegraph adjusted their poll numbers to a tie at 50/50 but they seem to be pushing to leave .
Regarding CPP, I am hoping that the Silver Tsunami doesn’t break the bank and there is money left in the pot when it is my turn but I am trying to act like i won’t be getting any.
I have championed the Tfsa on here before ,as a sub contractor working in construction I am treating mine as a retirement fund.It won’t be enough but I want to try to be self sufficient as much as possible.
People looked at the 10,000 and said that’s a big number.And now that is been rolled back some still argue that it’s too high, but I brown bag my lunch and do whatever else I have to do to put $15 a day to the side for on….Later on.
I don’t like my new GAP code ,but I am not Benjamin Button…
M42BC
Curiously, the fed’s Steering Committee only wants people who are already actively engaged in educating the masses about financial literacy. Given their evident success in doing that, perhaps they need some new blood???
#41 You make a good point.
Workers will have a bigger share of their money in the enhanced CPP. If they do not have a spouse to get spousal benefits, do the contributions go back into CPP to be given to someone else or will the funds go to your estate?
Basically if you don’t make 65 and do not have dependents, all of your lifetime CPP contributions and those of your employer paid in your name go to someone else, after the $2500 is given to your estate.
I figure that the only reason that CPP even pays out the $2500 is so that the body won’t be left in an abandoned car somewhere because your family wouldn’t pay for cremation or some kind of funeral. You know what some families are like when it comes to money.
@#114 Satan’s lawyer
“LOL, you have no idea what a good real estate agent actually does to sell a home – not a clue….”
*******************************************
Unfortunately that is also true of the majority of shylocks currently earning obscene amounts of money in comissions in bidding wars…….obscene amounts…… for a bidding war.
Suckers and their money getting fleeced.
Well.
Its coming to an end.
Eventually a large intenet conglomerate with deeper pockets than CREA will spend millions hammering your monpoly right out of the ball park and then ……then….consumers will actually have an informed choice and options on how they purchase a home……the most expensive purchase most people will ever make…….
With shysters standing right in the middle of the transaction with their hand out demanding a comission for taking photos, entering the info on a computor and unlocking doors……
The house sells itself….not you.
You can babble your sales pitch all you want. If someone hates the house . They aint buying.
And for that you get on average what?
$25 ? 50,000?
For how many HOURS of work?
Tough job .
You remind me of major league athletes bitching about how hard they have it when they dont get 10 million a year instead of 8. Most of them wouldnt be able to pump gas at a station if they had to work in the real world.
You should try a real job sometime .
It might make you realize how the other 3/4’s live. Enjoy the comissions. This is ending.
#93 BOOM! on 06.20.16 at 11:54 pm
Apparently, guys get much more crotchety as we age. I just wonder what a few more years will do? Arrrgh!!!
====================
It gets worse.
I used to wonder why old guys were crotchety. Now I know.
It’s not physical aches and pains. It’s watching guys like T2 burst on the scene able to leap tall objections with a single bound and believe six impossible things before breakfast.
It’s knowing that it didn’t work then, never will and it’s never different this time.
Most of all it’s the total frustration of knowing that nobody could talk sense into you at 35 so why would you think younger people will listen to you.
The problem with these CPP changes is that they take money out of the pockets of primarily young people, usually heavily indebted (on account of student loans and housing loans) only to effectively put it in a portfolio heavy with bonds and RE. Effectively the big “winners” here are the banks that will benefit from the young working class not being able to pay off its debt as quickly.
Yes, its only $40 a month or so, but every dollar that could be pre-paid against debt counts, especially on the monster mortgages that the kids have taken out. And the CPP isn’t exactly known for being an effective investor in the parts of the economy that are innovative and in need of growth/investment. Agree that expanding the CPP is a bad idea and will have a negative impact on Canada’s long-term competitiveness.
” and questionable language suggesting sexual deviance in order to improve math skills.”
I’m sold on this point alone.
Yup, definitely Smokingman, holding sign backwards to wrong way.
really tough to read in rear view mirror
Re: #4 Happy Prairie guy on 06.21.16 at 5:09 pm
Just wait ’till the CPP loses over half of their quote present day equity due to very bad investments. I know everything they’re invested in and a 50 percent loss is a mild estimate.
Come on, kick us down the road, give us the boot, but wait a minute, we are Canadians, we live here, our land.
No, no, pay more to live here and the jobs are sent overseas because “the best deal for taxpayers” (Christie Clark). Oh, I feel so Canadian to be putting my tax dollars to another country.
Meanwhile Canadians are looking for work. Someone has their priorities in the wrong country.
No wonder Trump has supporters, I even feel like voting for him. Kick us out even out of our own country. Leaders, what leaders.
This makes no sense. Why not leave the TFSA limit where it was and loosen the clawbacks on CPP/OAS. Wouldnt that have been a simple and practically no extra cost solution?
This hike in pension premiums is less about giving desperate retirees more income (if it was about that, they would have goosed the OAS, and made it available immediately.
If it had been about investing in Canadians retirements, they could have left the TFSA contribution limit at $10k.
No, this is all about getting a big fresh, pot of capital to the CPPIB to invest in infrastructure projects. The CPP Investment board, loves to invest in things like toll roads, bridges and power dams, because these long-lived projects give off steady, predictable income streams.
If only that were the case; these megaprojects, funded through ubiquitous ‘public / private partnerships’ have a great track record of making money, but mostly for the multiple layers of management that skim six-figure salaries from the cash flow, while pausing to pose for photo-ops.
But hey, at least they’ll be making THEIR CPP contributions, right?
panhandling franchise Oakville style
Oakville available
traditional way of scavenging bottles,beer cans from the recycling bin is.
pickup truck parked on street
hand pulled kiddy wagon
procedure, take wagon from truck,walk down one side of street and return to pick up truck
repeat until full.deliver bottles to beer store
franchise method of operation
personal electric mobility device with a train of wagons
drive along sidewalk and pick the recycling boxes
once the train is full, say 10 carts together.
drive down sidewalk to beer store cash in.if enough time repeat.
return wagon train to depot.
have ow/odsp pay for initial equipment
approach Oakville town council for exclusive rights. and for using the side walk.have them pass a by-law
have Oakville bylaw enforce this.
big pr Ontario government.
Oakville benefits in that these bottles cans go to the land fill which costs money by weight
Oakville gets big positive pr
franchises available
http://dyslexicsmokingman.blogspot.ca/
and for extra revenue have a hoover available in last wagon
lawn vacuuming $20.00
” Four in ten Toronto homebuyers with million-dollar houses have debt equal to at least 450% of what they make”
This is the stat of the day. What is the ratio for owners in CGY or VCR? By Province? Funny how we haven’t heard the “F” word (foreclosure silly) coming out of Alberta.
How about municipal/provincial/federal governments? What kind of debt do they hold that’s equal to “what they make””?
Read the conversation, or click on “broadband” to see a very funny, very informative “chat” between Clarke and Dawe – 5 years ago – and more appropriate today than ever before.
http://www.abc.net.au/7.30/content/2010/s2905304.htm
yup….sell everything immediately.
The more CPP becomes effect in a decade?
Hmm… I’m 60 in a month and probably dead in a decade
The bran new Green Utopia gifted to us by T2 and Wynn team Canada has a price my beloved fellow citizens and patriots…don’t ya be silly now. How we s’pose to have all that fresh air. Yes siree bob we got yer back and yer front and yer side and yer middle. we is up ur wazoo.
Notley’s “war on coal” KILLS entire town of Grande Cache Alberta
http://www.therebel.media/notley_s_war_on_coal_kills_entire_town_of_grande_cache_alberta
The CPP vs TFSA decision is a joke.
They’re fine with you growing your piggy bank as long as they control what happens with it.
I agree that Canadians underestimate or don’t know the importance of the US electoral college and the college maths doesn’t look good for Trump.
This website estimates that Clinton likely has 215 of the 270 EC votes needed to win whereas Trump has 111. Of the 190 votes left to grab, if Clinton wins Florida, with 29, Pennsylvania, 20 and Oregon with 7, she is the president. She is presently leading in Florida. Trump needs another 159.
http://www.270towin.com/maps/clinton-trump-electoral-map
The Orange One might make it on charisma if that is the appropriate word, but experience shows that attack ads win elections. Last month the Clinton campaign started with $42 million in the bank and raised $28 million. Trump’s began with $2.4 million and ended up with $1.3 mil including the $45K he personally contributed (yes, a whole $45,000). I have seen a couple of the early Clinton ads and they are brutal and unfair to the Donald. They simply show him opening his mouth and saying whatever. One shows him mocking a disabled person.
Anthing can and has happened, but leading Republicans are avoiding the coming convention in droves and local Republican senators and governors wouldn’t join Trump on stage in the last 5 primaries he won. If you can win the presidency with no cash and scant support, maybe you really deserve it but its looking pretty iffy to me. Nobody knows how the Donald will handle serious attacks from an experienced and ruthless team and maybe even probing questions from the media if we’re lucky.
Can’t believe Garth is still promoting supporting hedge funds. Red Party Money Laundering is where its at.
;)
#70 Bullion Licker on 06.21.16 at 8:19 pm
Yup, definitely Smokingman, holding sign backwards to wrong way.
really tough to read in rear view mirror
……………
Proof that Smokey is Dyslexic. Nice catch on the signs.
Thank goodness I’m retiring in 2020, I’ll only have to put up with a year of increased CPP contributions. As a recent (2012) arrival to Canada, I only expect to receive a couple hundred bucks a month max when I start to draw CPP…fortunately my US and Canadian pensions, Social Security, and diverse portfolio will more than make up the difference. Now if they’d only change the laws about US citizens and TFSA’s…
To all those commenting about ‘gold plated’ gov’t pension plans & how most don’t have access to a DB plan. First CPP IS a DB plan. All (legally) working Canadians contribute as do their employers. It is fully portable regardless of where you work in Canada – other DB plans may or may not have a portability clause & usually it is limited to a very few other plans – & like any other DB plan, what goes in determines what comes out. I pay roughly $208 per month towards CPP & if I work to age 65, would have probably received the maximum under the old rules. So about $13,000 per year using current numbers. However, I pay over $650 per month towards my employer DB pension plan. My estimated pension if I pay into the plan for 35 years is roughly $35,000. Essentially, I’m paying 3 times more than my CPP into my employer’s DB plan & will get not quite triple the amount I’d get from CPP (this presumes I will live long enough to collect from either plan).
Bottom line – you get what you pay for. Given that vast numbers of people will only save if forced to then the only way to ensure at least minimum income in their old age is to make contributions to a pension plan mandatory. I will freely admit that had I had a choice about paying into my employer’s DB plan I would have opted out, as I sure could have used the pension deductions for other things. I was essentially saved from myself by the fact that I had no choice but to pay into the plan.
Second, if you want to know what the pension plan rules are for CPP/OAS etc, go to the Service Canada website & read up on it. Especially for anyone who might be retiring in the next couple of years it is essential to understand what you might (& more important, what you might not) receive in the way of pension benefits. Would suck to retire & then discover that pot of gold you were counting on is not at the end of your rainbow.
Anyway, here’s the new government pitch to people who borrow an $800,000 mortgage and use 100% of their savings to buy a house they don’t need and will never pay off: relax. We got your back. Invest in a hot tub and a Wolf six-burner. Use your TFSA, if necessary. This retirement thing is handled. Honest.
///////////////////////////////////////////////
Right but that actually turned out to be the exact truth. And in the somewhat less hot markets there’s no chance of any sort of ‘correction’ in RE. For the lucky generation buying into a falling rate environment getting a hold on their biggest living expense (shelter) that’s mostly a valid plan.
My local market (montreal) never really had any sort of significant RE downturn in over 40 years, that’s on top of the 80s rate spike and TWO referendums! If calling the army and martial law in the 70s on canadian soil doesn’t break a market I don’t know what will.
Just got this notice from google for my shit blog. WTF are these un-elected tax sucking parasites doing om smokes blog.
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Sorry. My post on Trump should read he likely has 133 EC votes and needs 137.
I know that the pension amounts sound meager, but if one is prudent and you’ve paid off your house by the time you retire, then the amount covers food, utilities, insurance, etc easily.
A paid off house is not going anywhere (please spare me the extreme and unlikely examples of tornadoes, fires, blah blah blah).
I think that’s what most reasonable people plan on – have a house paid off by retirement…and give me a break, you don’t need to buy in Point Grey or some fancy neighborhood. An hour’s drive from the hottest real estate markets in Canada you can buy houses for under $400k. HOUSES… not condos. Actual LAND.
But those who think that paying rent until they’re dead is the way to go, you might want to rethink your strategy before you’re too old to work. That yearly return of your financial investments is not guaranteed, and the future looks really unlikely for “conservative returns of 7% yearly”. After a couple of years of losses, you’ll be wishing you had a house that wasn’t shrinking at the same annual rate that your investments are disappearing and your purchasing power is dropping.
That’s the beauty of a paid house. You get the same utility out of it year after year. Value drops? Who cares. It’s paid off. It’s the same house. Value rises? Great, you can sell if you like or stay and get the same utility.
Owning a paid-for house in retirement is fine. Blowing your finances to the extent you retire on only public pogey is not. Fail. — Garth
“Some days I’m happy to be an old dude. What’s coming will be epic.”
Love this quote. It will help make you famous.
#41 Randy says:
“You invest in the CPP for 45 years. You die around age 65. You family and Estate gets NOTHING but $2500, no even enough to bury you. Canadians are not only Cowards, they are STUPID too. Except Government Workers, they get a gold-plated Pension for their Estates when they die.”
WRONG!
Government Workers get a death benefit that is scaled down to $10k at age 75 for their estates and THEY PAY FOR IT through premiums for their entire working life. It is like life insurance. CPP pays a small death benefit because the workers DO NOT PAY for a bigger one. If they did premiums would be higher and you see how everyone complains about higher premiums. You can get as big a death benefit as you want by buying supplemental life insurance.
Owning a paid-for house in retirement is fine. Blowing your finances to the extent you retire on only public pogey is not. Fail. — Garth
……………………………………..
Entrepreneurs never retire. Just slow down a bit.
The love of fishing and I ain’t talk about using a rod.
So Hillary is a show in huh?
Not so fast.
http://thesmokinggun.com/documents/crime/dnc-researched-clinton-speeches-travel-records-621985
You guys all remember my many references to One and Done then reverse.
https://www.yahoo.com/news/fed-chair-yellen-says-us-economy-faces-considerable-140545044.html?ref=gs
I nominated Garth!
#67 Andrew Woburn
Per your astute observations on aging.
Quite accurate!!
UH… just one more thing. Consider Trump. Not young, not wet behind the ears as they used to say. Where does a guy like this fit in. T2 has youth as his excuse, for now.
Cheers
#85 Linda,
I think unions are doing a terrible job of teaching the general public that people with db pension plans actually put money into them for 30 to 35 years. If people just did the same with their rrsps, nobody would be whining. Frankly I don’t see why you would care how envious people are of your db pension. Next time someone asks, ask them how big their penis is because I’m sure women never ask about your pension.
Years ago at an un named tax farm I was contracting to. There was bond confrance in London.
Topic of concern was rejectionism. The machine knew that the herd was growing tired of the establishment. Fast forward few years later.
Hillary palls with Trump back then. Now mortal enemys.
Orlando. Helps Trump huge. And hurts Hillary.
New leaked dirt on Hillary out today will be devastating to her campaign.
So although this man. The smoking man knows the game. If you bet on Hillary your going to lose.
Trump just as much establishment as Hillary..
Like I always say.
You can’t beat the machine….
Only a shoot em up blood bath take the country back and make it great again will work.
Good luck with that.
The stupid are doomed.
#87 Smoking Man on 06.21.16 at 9:31 pm
Just got this notice from google for my shit blog. WTF are these un-elected tax sucking parasites doing om smokes blog.
—
Well aren’t you Trump’s new campaign chief?
#58 Tony
…”Most Americans would feel rich if they could retire with $1300 coming in monthly.”
Tony, Tony, Tony, my much mis-informed friend. In the US you may elect to take social security as early as 62, or your NRA ‘normal retirement age’ which could be 65-67 depending on your year of birth, or delay taking it until 70.
Between your NRA and age 70 benefits grow by 8% a year. If you took it early at 62 your benefit is permanently reduced, again depending on your birth year up at a max of 30% in your NRA is 67.
What you get, is somewhat dependent on WHEN you selected to get it.
In 2015 the ‘average’ social security check was $1,335 based on earnings, years paid in, and when benefits were taken. The maximum social security benefit is $2,639 but, that assumes you earned the highest social security earnings limit for the previous 35 years. If you and your spouse did earn those maximum benefits, you would get $5,278 per month… Actually few do.
Remember these benefits are paid to individuals. A married couple, both receiving the ‘average’ check would get $2,670 per month.
Social security statistics show that SS makes up for about 39% of income for the elderly.
For 22% of married couples, and 47% of unmarried rely on SS for 90% or more for income.
51% of Americans have no private pension coverage.
34% of Americans have NO savings set aside specifically for retirement.
Go to SSA.gov for statistics
#99 Steerage Bilge on 06.21.16 at 10:28 pm
#87 Smoking Man on 06.21.16 at 9:31 pm
Just got this notice from google for my shit blog. WTF are these un-elected tax sucking parasites doing om smokes blog.
—
Well aren’t you Trump’s new campaign chief?
….
Trump is owned by the machine as much as Hillary is Makes for good theatre…
You bastards have no idea the advantages Nictonites have over humanity. If I dident have a phyco x wife on Nictonite I would have blown you shit whole of a planet to smitherings.
This is home now. Got a phyco Scottish wife just as crazy as the last one. But she does laundry and makes the best bacon and eggs know to Man kind.
It’s only because of her you get to live.
It’s all in my book.
#98 Smoking Man on 06.21.16 at 10:26 pm
… “Like I always say.
You can’t beat the machine….
Only a shoot em up blood bath take the country back and make it great again will work. Good luck with that. The stupid are doomed.
You are so right, SM; it really is the only way at this point. But the herd is asleep or buys with brain buried in their hypnotizing devices. What will it take to wake them out of their stupor?
I always hope something will happen and the entire world telecom grid will shut down for 1 – 2 weeks at least – people would see there is another reality they’ve been missing.
Oops! byus = BUSY !
NOW AND FUTURE
What you pay
Now: $4.95 for every $100 on your paycheque
Future: $5.95 per $100 on your paycheque
(employers match it dollar for dollar)
Maximum per year:
Now: $2,717
Future: $4,920
http://www.winnipegsun.com/2016/06/21/so-much-for-saving-for-ourselves-business-not-pleased-with-cpp-hike
#101 Smoking Man on 06.21.16 at 10:42 pm
#99 Steerage Bilge on 06.21.16 at 10:28 pm
#87 Smoking Man on 06.21.16 at 9:31 pm
Just got this notice from google for my shit blog. WTF are these un-elected tax sucking parasites doing om smokes blog.
—
Well aren’t you Trump’s new campaign chief?
….
Trump is owned by the machine as much as Hillary is Makes for good theatre…
You bastards have no idea the advantages Nictonites have over humanity. If I dident have a phyco x wife on Nictonite I would have blown you shit whole of a planet to smitherings.
This is home now. Got a phyco Scottish wife just as crazy as the last one. But she does laundry and makes the best bacon and eggs know to Man kind.
It’s only because of her you get to live.
It’s all in my book.
—
Where the hell is the damn book! I hope President Trump is now a character in it with Rob Ford’s goats as his VP. And his ghost!
Imagine an investment that just owned all the properties that held gold bullion. That would be the perfect REIT to invest in.
Not this week. Gold is stealing wealth yet again. — Garth
All of you all who are bemoaning the current TFSA contribution limit as opposed to the $10,000 pre-election ploy limit introduced by Mr. Harper realize that that was it…$10,000 never to increase, ever.
At least the limit as it stands now will increase in step with inflation.
If some of you get your wish it may just be back at $10,000 before you are done and gone.
we tell the millennials to stop the whinging and figure it out, now I tell you…stop the whinging and figure it out, you sound like little girls.
The TFSA is not for ‘wealthy’ people. With a standard contribution limit based on residency, not income, it is the most egalitarian way of allowing lifetime wealth accumulation by all. Any young person not seeing that is a fool. — Garth
————————
Any young person who thinks that he/she has a chance in Canada with these leaders and this economic policy is a fool anyway, TFSA does not change the picture, it is an illusion anyway, one comes naked and leaves naked (literally and financially) without the chance of passing anything (with few exceptions) to one’s heirs except debt.
Flopper #63
I’m standing tall, go Ukraine! Who needs points anyway?
Happy birthday, buddy… I hope it was a good one!
M48ON
It’s blog posts like todays that make me both anxious for loved ones still in Canada, and thankful that my livelihood is no longer earned nor taxed there. There definitely seems to be an accelerating downward spiral in the Canadian mentality of expecting the state to take care of them completely.
Borrow your way to prosperity. That should work.
102 Metaxa on 06.21.16 at 11:01 pm
All of you all who are bemoaning the current TFSA contribution limit as opposed to the $10,000 pre-election ploy limit introduced by Mr. Harper realize that that was it…$10,000 never to increase, ever.
At least the limit as it stands now will increase in step with inflation.
If some of you get your wish it may just be back at $10,000 before you are done and gone.
we tell the millennials to stop the whinging and figure it out, now I tell you…stop the whinging and figure it out, you sound like little girls.
….
Little girls,, you Sexist bastard…
Libtards he’s yours…
For financial literacy committee I’d nominate John Robertson
author of _The_Value_of_Simple.
#89 Heisenberg on 06.21.16 at 9:36 pm
I know that the pension amounts sound meager, but if one is prudent and you’ve paid off your house by the time you retire, then the amount covers food, utilities, insurance, etc easily.
A paid off house is not going anywhere (please spare me the extreme and unlikely examples of tornadoes, fires, blah blah blah).
I think that’s what most reasonable people plan on – have a house paid off by retirement…and give me a break, you don’t need to buy in Point Grey or some fancy neighborhood. An hour’s drive from the hottest real estate markets in Canada you can buy houses for under $400k. HOUSES… not condos. Actual LAND.
But those who think that paying rent until they’re dead is the way to go, you might want to rethink your strategy before you’re too old to work. That yearly return of your financial investments is not guaranteed, and the future looks really unlikely for “conservative returns of 7% yearly”. After a couple of years of losses, you’ll be wishing you had a house that wasn’t shrinking at the same annual rate that your investments are disappearing and your purchasing power is dropping.
That’s the beauty of a paid house. You get the same utility out of it year after year. Value drops? Who cares. It’s paid off. It’s the same house. Value rises? Great, you can sell if you like or stay and get the same utility.
====================================
Pithily rebutted by Garth already, but this little treatise is so flawed it’s hard to know where to begin. As has been stated before, if the goal is to eke out a subsistence life in retirement in your paid-off shack, fine. But the new CPP will provide for a better brand of cat food, nothing more. Yet implementing it will be just one more nail the in the economic coffin, particular as noted, for small business owners – the true economic drivers. Liberals, take careful aim at own foot.
Incidentally, rent until you die, or pay to maintain a house until you die – you still die.
Heisenberg’s post should be framed and hung on the wall as the perfect summation of the true, Canadian, one-asset, non-diversified “investment” strategy.
DELETED
Where is our national pride and dignity? When did it become acceptable to believe the government should look after us? When did it become acceptable to run large deficits and burden future generations? How can the government promote financial literacy when it doesn’t show any financial restraint?
You should be in charge of this thing. Financial literacy is your strength, and there is nothing wrong with the truth. Your motto would be:
You want the truth, you can’t handle the truth.
#114 Smoking Man on 06.21.16 at 11:25 pm
DELETED
…
Fk I would pay a fortune for em
I’m the wobbly zone at the moment.
Phyco earth wife is counting my cigarettes with a Kathleen Wynee frown.
Demandeding a back scratch..
Do I capitulate. Book 2.0
#97 Lee: regarding pensions & other financial information, I have long thought that it should be a mandatory part of any school curriculum. Why do we not teach children about matters such as loans, mortgages, credit cards, investing & especially how RRSP’s, TFSA & pensions work (or don’t work). Garth gives out excellent advice, but no one ‘has’ to read his blog. Granted, children might not pay any attention in a class on such matters, but if they are given the opportunity to learn how to manage money before they become part of the work force there is at least a chance some of them will put those lessons to good use.
As for unions educating the public on how union members pay for their own pensions, in a world where the mantra seems to be ‘if I don’t have it you shouldn’t have it either’ no amount of education is enough.
”This isn’t security. And don’t pretend the extra makes “a real difference” to anyone except (maybe) the destitute.”
Actually Garth, the destitute will probably be the only ones negatively impacted by this increase in the CPP because the destitute are the ones collecting the GIS. So, for every extra dollar extra they receive from CPP, they will be clawed back 1/2 of that from their GIS. Plus, the CPP is taxable whereas the GIS is not. The TFSA was the method by which this inequity was to be eliminated. The middle class, whatever is left of it probably will not make much difference to them as they are the ones on the defined benefit plans and that additional amount would he neither here nor there. For the 1%, no matter. The way things are going, the destitute class will continue to get larger and the middle class smaller. This change with the CPP will actually work out in the governments favor with the clawbacks to the GIS and other programs currently benefiting the ‘destitute’. Maybe this is what it’s all about or their just plain stupid and havn’t figured it out yet. What a bunch of buffoons.
#89 Heisenberg on 06.21.16 at 9:36 pm
found the poor guy
#38 Conan
”I agree that the TFSA is very Rock and Roll. But, dollar for dollar, it costs the government more to allow the TFSA then the RSP. That is why it got nerfed.”
Could you elaborate on that?
#43 I agree
”Do you really think an extra $3000 a year (in ten years) in CPP will make a bit of difference keeping a senior who needs it out of poverty?”
There will be no gain to speak of. They will lose $1500 in clawback to the GIS plus pay income tax on that plus it will increase there income which could cause them to lose other means tested benefits. This will be a savings to the government and a kick in the butt to the lower income earners for which there will be more and more in the coming years the way things are going. To the middle class and the 1%ers, it will make little difference except provide them with some additional spending money.
The TFSA is indeed very egalitarian. Every person with $0 to spare at the end of each month has an equal opportunity to invest money they don’t have, tax-free, as people who do have a lot of spare cash. And what else is equal between a poor man and a rich man? The number of votes he is eligible to cast.
Banks are inflating their books via RE.
See the amount of money our neighbours to the south have printed.
Canada will do the exact same thing when the SHTF.
#60 the other white meat (pork) on 06.21.16 at 7:57 pm
#23 joeblow
Also this cpp increase helps guberments reduce public pensions obligations by getting us slaves to pay more so teachers and guberment workers maintain fat payouts. Where’s the exit again?
An idiotic post to be sure, but you’re almost there. It isn’t about teachers and government workers (educate yourself about how their pension plans work) but it is about reducing GIS and other benefits and shifting the costs onto workers and employers.
The “exits” are to the south, east, and west of us. Don’t let the door hit you on the way out. Maybe “Brazil expat” has a vacancy in his razor wire enclosed enclave.
+++++++++++++++++++++++++++++++++
You are always welcome down here. Canada is cooked. It’s too expensive. There is no industry. The Govt sucks WAY too much money out of a dwindling workforce and the gigantic public sector is to blame for most of the countries problems.
See you down here soon !!
Garth: the grand-daddy of the TFSA,
Any thoughts on the CRA’s high-value TFSA audit project, vis-a-vis business income treatment of capital gains?
Do you advise your clients to file annual returns on their TFSA trusts for assessment as a CYA move?
Perhaps you’ve sought or received professional advice on this topic and have some insight to share, with two twenty-something renters that have done very well through buying-and-holding in their TFSA’s.
Or perhaps you are willing to do some digging on this and devote one of your nightly public service announcements to the topic.
Our regards.
#63 For those about to flop…
Remember 42 is the answer to the Ultimate Question of Life, the Universe, and Everything
Happy Birthday!
#47 Julie K.
Wow, double-ending life with government dole. I’d be appreciative to, but I’m the guy that has three really good young adults (25,22,18) and never saw a dime of child benefit (directly – I ate the amazing pie that their Mom made so, I very much benefitted). Nor do I ever get a GST rebate or can I collect E.I. ( unless I leave my profession), though I pay into it all year, every year for the past 25. Yea, Canada is a very social services-oriented country, but I like it here for now.
Of course, the goosed CPP will not save anyone, and will negate the last few months of CPP deduction freedom for me, but we’ll all make contributions and derive some benefit. I ascribe to the Garthism “TFSA good” for the unreportable stream of income to supplement the DB plan and RRSP disbursement at 71. Now I just have to dodge the bus…
M52BC
Wow, thanks Nick (112), great note to come across on one of the few nights I have insomnia and read the comments here!
I don’t think they’re looking for independents though, there seems to be a focus on being part of an organization in the application criteria. Plus contrast the bios of the current slate: http://www.fcac-acfc.gc.ca/Eng/financialLiteracy/financialLiteracyCanada/Pages/Biographies.aspx
Thanks for the thought though!
https://www.theguardian.com/cities/2016/jun/21/which-most-corrupt-cities-in-world
…just returned to YVR from the UK…..interesting reading above re: the hijacking of urban public policy-making and civic institutions by vested interests……..
“arguably the most important element of corruption in cities: where illicit money flows, and how it is hidden. …………… the financial bounty reaped by elites has to end up somewhere. That somewhere, overwhelmingly, is the City of London.
Britain’s private bankers, largely headquartered in the UK capital’s square mile – an institution which is itself shielded from most forms of democratic accountability through an archaic web of legal exemptions and historical conventions (the City is one of the only urban settlements on earth where businesses help elect the area’s political representatives, and control votes which vastly outnumber those of local residents) – manage $1.65 trillion of client assets between them, covering wealth from all over the planet. That money is protected from meaningful oversight through extraordinarily generous laws on tax, trusts, secrecy and domicile status, and a consistently lax enforcement regime.”
#50 John Zani on 06.21.16 at 7:42 pm
Keep up the good work.
Hate to say it, but my mom is 69 and living on $1400 per month, plus what she can get off her $150,000 in RRSPs. It can be done, but it is tight. The point is, it is done by many, many Canadians.
Did she make some bad decisions, yes. But she was also a stay-at-home mom as was the norm in the 80s and 90s and then went through a divorce. Life happens. It was harder to find high paying jobs in her mid 50s and into her 60s for obvious reasons. I will end up supplementing her and my dad.
So to say this doesn’t make a difference … maybe to you and your family, but it is a big help to mine.
The Libs are trying to redistribute income in Canada (Top 86 Canadians earn more than 11.4 million Canadians combined, Top 100 Canadian CEOs earn 190X the average Canadian income in Canada…those stats from 2 years ago).
Boo hoo, these people now have to cough up some more payroll tax cash so that the vast majority of Canadians will have a tiny bit more CPP spending money by 2025.
Many here do not like it.
Where is our conscience…buried in accreting more money? Is this the Canada we want, have and have nots, rampant financial individualism (all for me, none for you)…if so, then throw out every egalitarian program we have, start over and lets go Libertarian.
As for people looking after themselves, the system as it stands is rigged against them…why they gamble with YVR/416 RE…to get a bigger piece of the pie not available to them. This is nothing more than desperation and as you point out, it will end up badly.
The Banks are worried about this only because it will impact their bottom line in the future, how self-serving considering they contributed to this mess in the first place…
Flaherty had it right, too bad his good common sense has left us. Morneau does not have it.
Any 1st Year University Sociology course will point out why the system is rigged against most Canadians (e.g., the Desmarais family gave us Chretien, Mulroney and Martin thru their “nurturing” starter campaign contributions – that’s 3 Prime Ministers).
But no, the system is not rigged, is it now?
Financial literacy training? If only it were a fair fight, then it would work. Even then, people are gullible…just look at the income distribution in Canada. Canadians and their Government seem happy with this. Fine. A few thousand dollars more of TFSA contribution room will not cure the income distribution issue in Canada.
And no, I’m a righty but even I have to admit things are going awry in this great country (Top 3%’er until retirement, now down to a Top 13%’er and fine with that).
Freedom.
Is this not what our ancestors were chasing, at great personal cost and hardship, to come to this country?
Is this not the reason why our Grandfathers and Great Grandfathers went overseas to fight in World Wars for?
Now here we are, the generations that should be reaping this reward, and we are just giving it away to the government. Is there no such thing as personal responsibility anymore?
For those who do not see that the more ‘help’ we receive from the government the more they take away from us. We are becoming a nation that is dependant on the handouts from government. This dependance will make us become soft and needy, like little birds waiting to be fed. Is this freedom?
The world can be a hard, tough place, but when you learn to take personal responsibility you learn how to overcome this, and deal with the things you can’t overcome. This is what makes life sweet.
If a person does not have the fortitude to do what they have to to make their situation better, (unless they are physically or mentally unable to, which is why we have safety nets in place), then they become sheep to be herded around by someone else. Is this freedom?
The only thing we are entitled to is the freedom to make our choices and live in relative security. Buying a home is not an entitlement. Borrowing money we cant possibly pay back is not an entitlement. Having better appliances and a nicer car than the neighbours is not an entitlement.
Be careful what you wish for because there is a lot more cost here than the extra money coming off of our paycheques to fund another government handout!
I filled out the financial literacy application. Now, I’m just waiting for the phone to ring. I can’t miss. As my strategy outline I wrote: “Buy Low. Sell High.”
Re: #132 Fortune 500
“So to say this doesn’t make a difference … maybe to you and your family, but it is a big help to mine.”
Re-read the post; Garth says it could make a difference to the destitute. So, there ya go pal.
Re: #89 Heisenberg
People buying houses today with 5% or 10% down and 30 year amortizations will never “own” their homes. They will retire with that horrid debt hanging over their miserable heads, and wish that they had saved and invested for liquidity. That’s what they’re going to need, and they will not have it. They will become wards of the state.
@ #133
«The Libs are trying to redistribute income in Canada»
Only one problem with that, It doesn’t work. In the end we just end up poorer.
Hillary Said.
“Trump would throw us back into recession.” Clinton said in Columbus, Ohio, adding that “Trump would take us back to where we were before the crisis. He’d rig the economy for Wall Street again. That will not happen on my watch, I guarantee you.”
……………………….
Yes slayer woman, Goldman Sacks drop to the knees hobbyist, we all know you have everyone’s back.
Ba hahahahhahaha
Anyone seen this one coming from MSM
O OH Bet accordingly!!!!!
http://www.dailymail.co.uk/debate/article-3653385/Lies-greedy-elites-divided-dying-Europe-Britain-great-future-outside-broken-EU.html#ixzz4CHMelppC
@#127 Brazil ExPat
“The Govt sucks WAY too much money out of a dwindling workforce and the gigantic public sector is to blame for most of the countries problems.”
*******************************************
True.
But what is that word Brazilians use to describe corruption in their own country?
Malufar?
Coined after Paulo Maluf. A former mayor of Sao Paulo so notorious for corruption and stealing from the public purse his name is now synonymous with greed.
Or the now free, Thor Batista( the son of Brazils’ once richest man who at one time was worth 27 billion and who is now virtually broke….) who testified in court that he was driving his SLR McLaren “with due care” when he splattered a poor black labourer cycling home after a days work across a 4 lane highway….
Yep. Brazil is a much better place to live…..
~40% of 24-29 yr olds are living at home, the job market means stringing together a bunch of contracts and many Millennial homeowners had to borrow their DP from Mom and Dad, since they still have student debt, car loans and a line of credit to pay for that Cuba trip twice a year.
The government hates any job that involves real skill and has anything to do with commodities (meaning a real living wage).
Young Canadians have been brainwashed by too much fluoride, too many female teachers and not enough bloody noses.
If your job isn’t controlling some sort of technology or robot, then good luck.
As for “Smoking Man” in the picture.
Why is it that most people(99% of which are caucasion….just sayin) that you see begging for handouts…. are smoking $10/pack filtered cigarettes?
Are they broke because they smoke?
I think the east european Czech communist looking, Premier Wynne, wanted a CPP change, three times bigger than the new $35 employer tax, $35 wage monthly tax.
See here, sub-titled “How much will it cost”?:
http://www.theglobeandmail.com/news/national/what-you-need-to-know-about-the-ontario-retirement-pension-plan/article25943866/
“$3.46 per day” equals $105 a month, not $35.
Thus she will continue the Ontario Pension bureaucracy start-up, and feed my money to her own, not to my production ideas.
I agree with #68 Mark, and others. For example #74 mentions money, which is incorrectly invested, reduces future total Canadian incomes.
Those decisions are best made by huge numbers of us, not by the few in a council. Council is why USSR failed. Soviet means council.
Liberal voters:
Let many of us opt out of participating in your schemes, for your own good.
We are the producers, the investors, not you.
Do not take our means of saving capital to produce future income.
no burial, no cremation
Liquify your dead body – for the earth!
http://io9.gizmodo.com/5833676/liquify-your-dead-body—for-the-earth
CPP Changes are a good thing
Most people bemoan the demise of the defined benefit pension plans of many private employers. This largely fixes that problem.
New CPP is a defined benefit plan that replaces 30% of income for those that contributed all their working years. It covers incomes up to $83,000.
That 30% will be a very nice base upon which to add your own retirement savings.
All those struggling employers paying less than $53,000 are only seeing their contribution rate jump one percentage point and that is phased in. They can handle it in the vast majority of cases.
Those employers paying their people between $53,000 to $83,000 face a big hit. They may have to cancel wage increases to pay for this.
Employees in that range also face a big hit and may have to cut back on their other retirement savings plans.
Overall this new CPP is a good change and will make sure that almost everyone who works most of the years between age 25 and 65 will have a basic 30% DB plan.
These changes hit the nail on the head. Well done.
Well at least my own province didn’t just jump in to the fray. Our new government is being blamed for “being too new” to no go along with the other provinces. Yet here is what our new premier said: “Canadians are saving less towards their own retirement. The CPP will not solve that problem. And I want Canadians to make sure they understand that. And this is our opportunity right here to elevate the financial literacy of Canadians.”
M66MB
Financial literacy steering committee. That’s rich. Coming out of one of the most wasteful, misguided regimes in history.
Here’s a better idea: Take the shortcut – read like mad, take some courses, talk to successful people and join this blog.
The pearls of wisdom coming out of this program will be exactly like those of most other government programs: lots and lots of flashy, expensive packaging promoted by vapid msm chatterboxes with very little content of any use.
Leaving the TFSA alone would have been far more economical, increasingly more motivating as people gradually understood it and perhaps most importantly, indicative of a smarter governing body.
Now, we are saddled with typical ineffective governmental schlock.
Move on, nothing to waste time on here.
#66 crowdedelevatorfartz on 06.21.16 at 8:05 pm
LOL. Like I said you have no idea what you are talking about. I would try explain it to you but you clearly have such a hate on for REALTORS® you wouldn’t hear it anyway.
BTW during the 21 days so far this month, in the Greater Kelowna area alone, 609 property owners successfully sold their property through a REALTOR®. That means another 609 chose to buy a property through a REALTOR® (Buyer’s Agent and Seller’s Agent). That’s 1,218 people who chose to use a REALTOR® in Kelowna in just the past 21 days. And if only half of those purchase and sales involved more than one person on either end (e.g. husband and wife, etc.) That would increase that number to 1,827 people who chose to work with a REALTOR®, in Greater Kelowna alone, in just the last 21 days.
How many chose and were successful buying or selling privately or through some other alternative model? Hard to know for sure but generally our industry surveys indicate it runs maybe as much as another 5%.
The vote is a landslide 1,827 nod yes for REALTORS® to 91 against. And the fact is many who buy a F.S.B.O. use a REALTOR® in doing so. And as you may well know in any market it is the Buyer which makes it all happen…
My point is; other business models do exist some have for much longer than organized real estate. If you think one of them better then please, by all means, choose that model for yourself. Please.
Oh and Zillow hasn’t changed the U.S. real estate industry much and I don’t think it, or any other such service, is going to there or here in Canada any time soon. Actually Zillow drives a significant portion of it’s revenues through providing services to and promoting REALTORS®.
Sorry for yelling. Forgot to turn of the bold HTML switch
If the CFIB is against it, it is probably a very sound plan.
My take on Brexit is that they’ll leave.
To see how “the masses” feel, I clicked on Smoking Man’s link from comment 140 and went to comments, which I sorted by highest to lowest rated.
All highest rated comments are for leaving the EU, and the ratio of Up to Down votes is staggeringly in favour of Up.
I am shorting the market.
So the government that just spent billions on useless garbage has a “financial literacy” initiative. What a joke.
Doesn’t matter since it will all collapse under the pile of enormous debt anyways.
As for the CPP initiative, I’m 33 and I expect to see zero (or very very little) CPP when I retire. However, my retired parents have been collecting CPP for about 5 years now. Do they need it? No, but it does help a little. If they will get more than it’s good.
MF
#127 waiting on the westcoast on 06.22.16 at 12:59 am
#63 For those about to flop…
Remember 42 is the answer to the Ultimate Question of Life, the Universe, and Everything
Happy Birthday!
////////////////////////
Thankyou OLC and Waiting for the birthday wishes.
I decided to sleep on my decision to turn 42 and have decided it will be o.k. as I have a year to get used to it…
M42BC
#132 Fortune500 on 06.22.16 at 2:55 am
thanks for proving Gartho’s point that it only makes a difference to the destitute
Meanwhile these same guys slashed the TFSA contribution limit by half, forever gutting the most effective, potent retirement-financing tool young working Canadians could hope to have.
___________________
The TFSA is not an effective retirement financing tool because most people will not use it.
People have to be forced to save, or they won’t.
Usually, the only way an average person will build wealth is through forced saving, and that means paying off a mortgage and building equity in their home. Its an added bonus if the house appreciates, but not a necessity.
I’ll bet you didn’t know we have a national Financial Literacy Leader. Well, we do. Her name is Jane Rooney and she’s currently seeking “influential individuals” to join the National Steering Committee on Financial Literacy. To be appointed you must be taking action “to strengthen the knowledge, skills and confidence of Canadians to make responsible financial decisions.”
I didn’t know but I am taking action. Here’s my form:
10) Provide a profile of your organization, describe how it supports delivery of financial literacy programs or initiatives to a broad range of Canadians on a local, regional, provincial or national level.
The organization is basically my family. My wife, our children, their children. It also includes extended family such as sisters and brothers, aunts, uncles and cousins and their families. They regularly interact with a broad range of Canadians including indigenous peoples, newcomers and low-income Canadians. Financial literacy has always been of prime importance starting with self-sufficiency. That means it’s very important to provide for yourself and your family. The primary means of transmitting the message is by example.
11) Describe your role as a financial literacy champion and include examples of how your leadership was key in influencing others to join you in promoting common goals.
As a man, I have provided for my family for the last 40 odd years. This has meant having an income with which to provide shelter and food. My example was key in getting my children to do the same.
12) Provide an example of how your collaboration with others within your sector or other sectors contributes to the strengthening of Canadians’ financial literacy skills.
Primary collaboration has been with my wife in promoting self-sufficiency in our children.
13) Outline any approaches that you took to reach consumers with the goal of promoting responsible financial decision-making and improving the financial well-being of Canadians and how those approaches were effective and the outcomes that they achieved.
Whenever we go shopping our policy is to pay for the things we get. Our example promotes responsible financial decision making and improves the financial well-being of Canadians.
14) Explain how you and/or your organization implements programs or initiatives that contribute to financial literacy and how these link with the promotion of financial literacy in Canada.
Aligned with the goal of self-sufficiency, we encouraged our children to go to school and to get part-time jobs. When they moved to different parts of Canada, their spirit of self-sufficiency went with them.
Boy Howdy!
There is a load of “Why isn’t the political party I most identify with in power?”on display in this thread.
Hyperbole much?
Flopper….
HAPPY BIRTHDAY !!!!
While you are still “too young” to invite to your local funeral home for their “free” pre-need estimate, it is never too early to enjoy oneself on their Birthday!
Enjoy your special day, then get back to the daily hustle!
Boom!
M64WI
A good comment analysis of the retirement fiasco:
http://www.cbc.ca/news/politics/cpp-expansion-credit-debt-1.3646406
Andrew Woburn More on Blockchain
Banks to use cutting-edge blockchain technology to speed up transactions
A week after the Bank of Canada announced that it will experiment with blockchain technology – the technology that underpins bitcoin – a new round of commercial banks have signed on with a San Francisco-based company to use the cutting-edge technology in the real world primarily to move money across borders in seconds rather than days.
http://www.theglobeandmail.com/report-on-business/banks-to-use-blockchain-technology-to-speed-up-cross-border-transactions/article30545656/
CPP confusion
There is confusion on the changes since the new maximum is $19,900 which is only 24% of the new limit of $82,700 and NOT the indicated 33% replacement.
The replacement on the first $53000 or so is apparently going from 25% to 33% at the cost of the contribution rising one percentage point to 5.95% from 4.95% for each of the employer and employee.
The contribution rate and replacement ratio on the part above $53,000 seems less clear.
It appears the income replacement ratio on that part is FAR lower than 33% and also lower than 25%, more like 10%?
I await clarity.
http://www.makevancouvergreatagain.org/
#147 Happy Prairie guy
“Canadians are saving less towards their own retirement. The CPP will not solve that problem. And I want Canadians to make sure they understand that. And this is our opportunity right here to elevate the financial literacy of Canadians.”
At least your premier has it figured out. I believe Quebec as well. The ‘I’m alright Jack crowd’ havn’t figured it out yet.
#113 BillyBob — “the new CPP will provide for a better brand of cat food, nothing more. Yet implementing it will be just one more nail the in the economic coffin, particular as noted, for small business owners – the true economic drivers.”
How about this: The maximum percentage increase in employer-paid pension deductions will come for their employees making $82,700/year. Payroll costs for those employees will increase by a total of 2.67% of salary by 2025 — nine years from now.
I say screw the small businesses who’ll become uncompetitive if their labour costs increase by less than 3% (+ inflation) over the next nine years. We don’t need those kind of jobs or employers anyway. Lasting competitiveness is achieved through higher productivity, quality and better value added for the customer, not by sitting on labour costs in a hopeless competition against Vietnam, Bangladesh or that other labour-intensive fast food joint across the street.
Hi Garth:
I hope you are going to nominate yourself!!! Seriously, they need you!!!
RE: #140 Smoking Man on 06.22.16 at 7:39 am
If I had to place a bet on Brexit or Stexit, as in no choice in the matter, I would put my dollars on Brexit.
Did you check out the comments section? Top pro leave post has 5400 votes to leave with only 40 votes saying stay.
http://www.dailymail.co.uk/debate/article-3653385/Lies-greedy-elites-divided-dying-Europe-Britain-great-future-outside-broken-EU.html#ixzz4CHMelppC
The TFSA does not specifically benefit the RICH, it specifically benefits the YOUNG
Until you understand that, you understand neither TFSAs nor wealth accumulation
Vamanos
Have you heard of compounding costs?
#88 Bottoms_Up on 06.20.16 at 11:26 pm
————————————————-
It is a well documented fact that the GTA receives approximately 100,000 people per year. No, wait….they all go to Timmins, sorry about that!!
#100 Say What? on 06.21.16 at 1:27 am
———————————————————
You believe that TO receives an average of only about 55,000 new residents a year? You must not live here.
—————————————–
Yes, Toronto receives 50-55,000 and GTA receives about 100,000.
GTA starts have been between 35,000-50,000 per year. At 2.8 people per unit on average, starts are clearly keeping up with population growth.
RE: #121 Ronaldo on 06.22.16 at 12:31 am
”I agree that the TFSA is very Rock and Roll. But, dollar for dollar, it costs the government more to allow the TFSA then the RSP. That is why it got nerfed.”
Could you elaborate on that?
I can briefly elaborate:
RSP: One time tax rebate for the contributor, then it’s a tax carnage highway on withdrawals and non spousal transfers. The government gets their money back in spades.
TFSA: No tax deduction for deposits, but the “GROWTH” is never taxed. Withdrawals are never taxed and do not count as income.
Point one is growth will always be more dollars then deposits over the long term.
TFSA= no tax for T2
RSP = tax for T2
TFSAs allow structuring of affairs to show no income or very little. Therefore no penalties on CPP, GIS, etc.
TFSA= Full CPP etc going to people with mega dollars
RSP = Full recapture of CPP etc going to people with mega dollars
#132 Fortune500
”Hate to say it, but my mom is 69 and living on $1400 per month, plus what she can get off her $150,000 in RRSPs. It can be done, but it is tight. The point is, it is done by many, many Canadians.”
You then understand what I am saying about the clawback to your mother’s GIS entitlements. Any additional earnings (over $3500) or monies redeemed from her RSP’s is clawed back 50 cents for every dollar that she redeems and the amount she receives in RSP is taxable. So right off the bat, she is penalized (taxed) 50% for being a good saver. She could also, depending on how much she redeems, lose other means tested benefits. This is the very reason that people like Garth have fought to have some other sytem like the TFSA that would not result in clawbacks to the GIS for these unfortnate persons. The way things are set up now the clawback can result in up to 70 to 100% of their GIS entitlement. A huge tax on the poor. But the politicians will not tell you this. Many, many seniors in the past who were entitled to the GIS and who did not apply for it saved the government billions of dollars and it was not retroactive for those who later applied once they were made aware of it.
Another benefit that many people are not aware of and don’t apply for is the “Allowance for the survivor” where one of the spouses passes. This is not automatic like many other benefits and you must apply for it. I have spoken to many people in the above circumstances who did not apply as were not aware.
I too had a mother who was a homemaker for the greater part of her life and widowed at 39 with 6 children who reluctantly had to seek help from the system until she was able to make it on her own. Yes, there are many many people in this same situation Fortune500 who through no fault of their own ended up like your mother.
Here is a link to Richard Shillington’s website loaded with information that you may find useful. If you scroll down to the bottom you will find the “GIS story” and also explaining why RRSP,s can be a Tax Trap for many like your mother.
Here is the link.
http://www.shillington.ca/
http://www.cbc.ca/news/canada/british-columbia/b-c-family-cashes-in-on-hot-housing-market-to-wander-the-world-1.3642714
These folks are smart. Sell high. Imagine buying a home for a 1.3mill
in suburb.
A recent study regarding poverty levels amongst seniors from Richard Shillington’s website.
https://d3n8a8pro7vhmx.cloudfront.net/broadbent/pages/4904/attachments/original/1455216659/An_Analysis_of_the_Economic_Circumstances_of_Canadian_Seniors.pdf?1455216659
The best thing that can happen to GREAT Britain is leave the EU. The EU needs them, GB doesn’t need them…let’s make Great Britain GREAT again!
Mixed news for Ontario actually.
The gvt already spent a lot of money on a program that is now killed – advertising and all, probably consultants too.
At least, it stops here but money will be spent on other programs needlessly, you can be sure of that.
#155 Noel on 06.22.16 at 10:04 am
”The TFSA is not an effective retirement financing tool because most people will not use it.
People have to be forced to save, or they won’t.
Usually, the only way an average person will build wealth is through forced saving, and that means paying off a mortgage and building equity in their home. Its an added bonus if the house appreciates, but not a necessity.”
————————————————————–
What you and many don’t seem to understand or take into account and which Garth has remarked on is the fact that the TFSA amount that you are allowed to contribute accumulates.
So, whether people can afford to contribute now, they can in later years when they are able. For example, a person who has a paid off home years from now decides to sell so as to use some or all of the proceeds to fund his/her retirement will be able to transfer a good amount of the funds into a TFSA which will grow tax free and not result in clawback to other programs like OAS and GIS.
Why is this so hard to comprehend for people?
@ #41 Randy
I’ve often wondered the same thing about CPP. At the very least, a person who dies early should see the portion he or she paid into CPP reimbursed to his/her estate. That, or bump the $2500 to something less insulting and more useful and representative of the monies paid into the plan.
Oh Canada
Richardson’s version:
“O Canada! Our fathers’ land of old
Thy brow is crown’d with leaves of red and gold.
Beneath the shade of the Holy Cross
Thy children own their birth
No stains thy glorious annals gloss
Since valour shield thy hearth.
Almighty God! On thee we call
Defend our rights, forfend this nation’s thrall,
Defend our rights, forfend this nation’s thrall.”
In 1908, Collier’s Weekly magazine held a competition to write new English lyrics for “O Canada”. The competition was won by Mercy E. Powell McCulloch, but her version never took.
McCulloch’s version:
“O Canada! in praise of thee we sing;
From echoing hills our anthems proudly ring.
With fertile plains and mountains grand
With lakes and rivers clear,
Eternal beauty, thos dost stand
Throughout the changing year.
Lord God of Hosts! We now implore
Bless our dear land this day and evermore,
Bless our dear land this day and evermore.”
Since then, many English versions have been written for “O Canada”. The poet Wilfred Campbell wrote one, as did Augustus Bridle, a Toronto critic. Some were written for the 1908 Tercentenary of the City of Québec.
A version written by Ewing Buchan became the most popular patriotic song on the West Coast.
Buchan’s version:
“O Canada, our heritage, our love
Thy worth we praise all other lands above.
From sea to sea throughout their length
From Pole to borderland,
At Britain’s side, whate’er betide
Unflinchingly we’ll stand
With hearts we sing, “God save the King”,
Guide then one Empire wide, do we implore,
And prosper Canada from shore to shore.”
The most popular version was written in 1908 by Robert Stanley Weir, a lawyer and Recorder of the City of Montréal. A slightly modified version of the 1908 poem was published in an official form for the Diamond Jubilee of Confederation in 1927 and gradually became the most widely accepted and performed version of this song in English speaking Canada. The French lyrics of 1880 remain unchanged.
Following other minor changes, the first verse of Weir’s poem was proclaimed as Canada’s national anthem when Parliament passed the National Anthem Act, in 1980:
“O Canada! Our home and native land!
True patriot love in all thy sons command.
With glowing hearts we see thee rise,
The True North, strong and free!
From far and wide, O Canada,
We stand on guard for thee.
God keep our land glorious and free!
O Canada, we stand on guard for thee.
O Canada, we stand on guard for thee.”
#164 ROTFL
…”I say screw the small businesses who’ll become uncompetitive if their labour costs increase by less than 3% (+ inflation) over the next nine years. …Lasting competitiveness is achieved through higher productivity, quality and better value added for the customer, not by sitting on labour costs in a hopeless competition against Vietnam, Bangladesh or that other labour-intensive fast food joint across the street.”
Maybe you are a teacher or a civil servant? Perhaps you are an entrepreneur in the trenches guiding us all with your utopian vision of “quality over quantity”.
It seems you didn’t get the memo. The people have spoken and they chose Ikea.
I don’t think you have any clue how many employed people are working at businesses that are just hanging on.. perhaps even your favourite restaurant or small town store that you so like hanging out at.
In two years perhaps this translates to Winners Walmart and Ikeas .. a land where independent business has burnt to the ground and unemployment of 20% or more becomes the norm.
Yep. Brazil is a much better place to live…..
++++++++++++++++++++++++++++++++++++
Both places have problems. But in Brazil the weather is warming, the women are hotter and the food is better.
England created the EU.
#113 BillyBob on 06.21.16 at 11:22 pm
on
#89 Heisenberg on 06.21.16 at 9:36 pm
====================================
Pithily rebutted by Garth already, but this little treatise is so flawed it’s hard to know where to begin. As has been stated before, if the goal is to eke out a subsistence life in retirement in your paid-off shack, fine. But the new CPP will provide for a better brand of cat food, nothing more. Yet implementing it will be just one more nail the in the economic coffin, particular as noted, for small business owners – the true economic drivers. Liberals, take careful aim at own foot.
Incidentally, rent until you die, or pay to maintain a house until you die – you still die.
Heisenberg’s post should be framed and hung on the wall as the perfect summation of the true, Canadian, one-asset, non-diversified “investment” strategy.
===============
Actually, Garth agreed that it’s fine to have a home paid off by retirement.
Mine is not a one-asset strategy. It’s a first asset strategy. Once you have your first modest house paid off, then you can go and risk your money at the casino/stock market….
If Justin Trudeau and Bill Morneau wanted to really increase people’s retirement income they could of simply increase the personal amount for retirees.
Make it $24,000 a year for singles and $48,000 for couples. This way we get to keep thousands of dollars more for our money.
Liberals and the NDP parties are taxocrats and bureaucrats. They love squeezing the lemon dry.
Trump Owns it
https://www.youtube.com/watch?v=xUW2-MUonbo
“People have to be forced to save, or they won’t.”
But isn’t there a savings glut? Where does all this funding for the huge mortgages that we see ubiquitously in the Canadian economy come from.
That’s right. Savers. Because every dime a bank lends out was originally borrowed from, and is ultimately owned by a saver.
This new CPP schema does absolutely nothing to encourage more investment. In fact, it may even detract from investment, as higher payroll taxes cause a well-known loss in investment climate attractiveness. Especially when unelected civil servants are running around making the investments, rather than the true private sector competing for investment funds based on the merit principle.
Info on Canada Pension Plan Death and Suvivor Benefits for those who find themselves in this unfortunate situation.
https://www.lifeinsurancecanada.com/canada-pension-plan-death-and-survivor-benefits/
Thanx for the invite Brazil – expat,
gonna check it out.
Someone else can pay for the fat pensions of Teachers and Guberment staff.
The CPP increase will benefit wealthy boomers the most. Paid for by Millennials. Boomers retiring in say 8 years will get the full benefit of the increased CPP but will have only paid an incresed premium for a few years. Younger generations will pay the increased premium for 40 years or more and get the same benefit.
Plus those who retire poor will get other government support like OAS or GIS clawed back due to higher income from CPP. Rich people don’t get the OAS and GIS anyway.
I also expect to see companies claw back pensions and RRSP contributions for employees in coming years to offset the higher CPP.
In the end the Millennials will pay for it all but most will actually get little benefit.
If the Canada Pittance Plan is really as inadequate as the feds and provs believe it is, then why wasn’t there a very modest increase in contributions 30 years ago? Waiting until now, when the last thing employers need is what essentially amounts to more taxes is like locking the gate after all the cattle get out.
#143 crowdedelevatorfartz on 06.22.16 at 8:31 am
As for “Smoking Man” in the picture.
Why is it that most people(99% of which are caucasion….just sayin) that you see begging for handouts…. are smoking $10/pack filtered cigarettes?
Are they broke because they smoke?
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That’s not Smoking Man. The guy in photo has teeth.
Gartho you’re forgetting something you told me awhile back when I asked you how the US was going to fund it’s social security programs being trillions behind the 8 ball.
Well, they have a printing press – you said.
Canada will be following suite with it’s printing press.
You see since Bernanke started QE to save the world from the GFC of 2008, everyone has been following that model.
#164 ROTFL…You have to kidding when saying “screw the small businesses” and “We don’t need those kinds of jobs or employers anyway.” Do understand the importance of small businesses and how they play a role in the economy.
Is the government post office business making money? I think we should say “screw the post office” and “with it all the jobs and employers with it.”
#190 BS on 06.22.16 at 2:21 pm
The CPP increase will benefit wealthy boomers the most. Paid for by Millennials. Boomers retiring in say 8 years will get the full benefit of the increased CPP but will have only paid an incresed premium for a few years. Younger generations will pay the increased premium for 40 years or more and get the same benefit.
********************
I think you’re mistaken. When collecting CPP what you get is based on what you put in. For instance, even though I began to contribute from year one of the plan and except for 14 years continued to pay every pay period, because my last working years were only part-time my monthly payment is quite meagre (slightly more than $300/mo). I haven’t read in any news coverage that that policy is going to change.
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#154 For those about to flop… on 06.22.16 at 9:56 am
Don’t get too used to it Flopper. Remember what George Carlin said about picking up speed on the downhill side. ;>) Enjoy this year and every one following. Before you know it, you’ll be 69 and will wake up one day and ask WTH?
F69ON
@187 Mark:
you might want to read up on fractional reserve banking.
Even CFA prep books describe it in pretty good detail, so don’t say this is some sort of conspiracy.
breaking : van to tax empty homes – gregor robertson
in a side note burnaby, richmond , north van, west van home prices jump 15 % over the past 60 seconds
Vancouver Mayor Gregor Robertson plans to bring in a punitive business tax on empty homes unless the province acts on the issue first.
The tax is intended to fill some of the 10,800 homes that are perpetually unoccupied, Robertson told reporters Wednesday morning in Coal Harbour — a downtown neighbourhood that is thought by many to contain more empty homes than any other area in the city.
“Vancouver housing is first and foremost for homes, not a commodity to make money with,” he said.
Robertson plans to ask Premier Christy Clark to create a “residential vacant” property class through B.C. Assessment so the city could tack extra taxes on empty or under-used homes. But if he does not hear back from the province by Aug. 1 on the request, the city will forge ahead on its own, Robertson said.
The city has yet to figure out how what type of usage would be considered empty or underused, or how those homes would be located. Those and other questions will be worked on by city staff if councillors approves a report on the issue headed to council next week.
About 12.5 per cent of Vancouver’s condos and one per cent of single-detached homes and townhomes sit empty through the year, according to a recent report that relied on utility data.
Sadhu Johnston, the city manager, said the province is in the best position to lead the issue, but action will be taken either way.
“Given the affordability challenges in the city and region, it is not acceptable to allow over 10,800 housing units to remain empty on a long-term basis,” Johnston said in the report.
watch how 90% of those places are all of a sudden ‘occupied’
pretty east to turn on the fridge, set a few light timers, get the grass cut, and pay someone to drop in and out occasionally.
this tax will fail.
This so called CPP improvement was pushed for the Ontario government which should put the cost/benefits and logic in perspective.
When you have the most incompetent non-sovereign government in the history of the free world influencing policy on an equally questionable federal government, you know we are in trouble.
Ontario, the new rust belt.
No wonder we have so many economic refugees from Ontario flocking to the west coast. They vote in clowns then come out here to put more demand on our housing.
Just Wynneing during our Sunny Ways!
Hi All,
Looking for some opinion here: Considering refinancing to utilize some equity from my highly inflated Lower Mainland house. Wife and I are 30, bought 6 years ago and have seen the “value” of our house soar, more than doubling. We have no debt other than the mortgage which is under term for 2 more years at just over 3%. I would like to refinance and grab one of these rates that is almost a full percentage point lower, pull out about 100k and completely max out our RSPs and TFSAs. I realize none of this money will be tax deductible but is this an effective use of equity? I am comfortable with borrowing and will have a large personal tax bill this year as my side business has increased dramatically. Any advice appreciated.
in other news , tesla the garbage smelling, cash burning, BS hype company dropped about 2.9 billion after announcing a 2.8b deal for another cash burning , hyped up, wasteful fad company (both elon’s)
both will approach zero at an ever increasing rate.
It may be time to hike rates as the Fed’s policy is no longer benefitting the real economy: Scotia
http://business.financialpost.com/investing/trading-desk/it-may-be-time-to-hike-rates-as-the-feds-policy-is-no-longer-benefitting-the-real-economy-scotia?__lsa=5937-eacf
Trudeau says prime minister’s spouse should get resources to modernize role.
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Yes I agree mine two, three little ones of our own to take care of and we don’t get selfies on the cover of Vogue!
Still lmao on this, wow lady try the real world, boo hoo.
https://www.thestar.com/news/canada/2016/06/22/trudeau-says-prime-ministers-spouse-should-get-resources-to-modernize-role.html
#178 Ronaldo — “What you and many don’t seem to understand or take into account and which Garth has remarked on is the fact that the TFSA amount that you are allowed to contribute accumulates. So, whether people can afford to contribute now, they can in later years when they are able. Why is this so hard to comprehend for people?”
Because some people understand exponential growth. If you can’t contribute until you’re 40, that’s two decades of lost growth you’ll never get back. Do the math — it turns into millions of dollars difference later on.
Hermans Hermits – here is some advice:
SELL YOUR HOME.
Cash out.
Take the money and run!
Mark # 187,
“That’s right. Savers. Because every dime a bank lends out was originally borrowed from, and is ultimately owned by a saver.”
———————————-
Gladiator # 196,
@187 Mark:
“you might want to read up on fractional reserve banking. Even CFA prep books describe it in pretty good detail, so don’t say this is some sort of conspiracy.”
———————————-
Forget fractional reserve, it just muddies the water since is doesn’t apply to Canadian banks anyway.
Mark, your either stupid or a liar and I’ve read enough of your crap to know, your not that stupid.
Here is the BoE pdf …..again Mark. (I bookmarked the link, just for you and Shawn)
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf
Quote from first page of the doc:
“Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.”
Agenda much?
RE: #203 Victor V on 06.22.16 at 3:50 pm
For the love of God and all that is sacred and holy. Please refrain from linking to a paid content site.
My two cents to the guy holding up the sign in the picture:
Try turning the other way, you’re facing the wrong way on a one way street.
#208 conan on 06.22.16 at 5:51 pm
RE: #203 Victor V on 06.22.16 at 3:50 pm
For the love of God and all that is sacred and holy. Please refrain from linking to a paid content site.
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for u….
It may be time to hike rates as the Fed’s policy is no longer benefitting the real economy: Scotia
John Shmuel | June 22, 2016 4:30 PM ET
More from John Shmuel | @jshmuel
After Brexit fears fade, expect the Fed to zero in on the unsettling froth its low rates have created in bond and stock markets.
It’s become a frustratingly common refrain: the U.S Federal Reserve appears set to raise interest rates, only to backtrack when some new geopolitical development gives it an excuse not to.
But that could change once the dust settles on the Brexit referendum this week, says Scotiabank’s vice president of economics. Derek Holt expects that once a decision is reached on whether the United Kingdom stays in the European Union or not, the Fed will begin paying attention to the serious “froth” that has built up in the bond and stock markets as a result of loose monetary policy.
“Federal Reserve policy may well turn to focus more strongly upon evidence of financial market imbalances,” he said in a note to clients.
Holt says that sovereign bonds are currently in a “policy-fed bubble” and it’s not hard to see why. The U.S. Fed owns almost half of the bond market with yields of 10 years or more, holding it off-market and driving bond prices artificially higher. Aggressive quantitative easing policies by the Bank of Japan, European Central Bank and Bank of England only exacerbate the problem.
Holt goes on to suggest that the actions of central banks — creating low yields and flat curves — are now soundly to blame for the weak fundamentals of the economy.
“That central banks are benefiting the risk trade but not the real economy,” he said. “This means low yields for long amidst largely trivial debates over precisely how low and for precisely how long.”
Holt’s view is the latest salvo in what is becoming a growing chorus questioning why we’re still in an era of rock-bottom interest rates
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block java for ‘anywebsite.com’ in your browser’s content settings. paywall flattened.
@ Salonist:
You forgot one version:
Ô Canada, land of our ancestors,
Your brow is crowned,
By wreaths of glorious flowers!
Though your arm can carry the sword, it can also carry the cross,
Your history is an epic tale,
Of your most brillant exploits!
And your valour, steeped in faith,
Will forever protect our homes and rights,
Will forever protect our homes and rights!
Written by Adolphe-Basil Routhier, and first performed 136 years ago this week.
@Salonist
And here’s mine:
http://www.greaterfool.ca/2015/12/09/mr-negative/#comment-416374
#205 ROTFL on 06.22.16 at 4:28 pm
” Because some people understand exponential growth. If you can’t contribute until you’re 40, that’s two decades of lost growth you’ll never get back. Do the math — it turns into millions of dollars difference later on.”
Many people in lower income brackets do not have the extra cash to put into RSPs or TFSAs plus pay for the mortage, raise their children and help them with their education. Many cannot start to save until their into their 40s. Probably will get worse in the future. So, in this case their home is their savings vehicle. You can’t lose what you could not have gained in the first place if you didn’t have the resources. Look up the statistics on the savings rate in Canada.
And Saad Rafi’s severance pay will likely be seven figures.
Come on, Garth nominate yourself for Jane’s group…we all support you!
New documentary on Chinese immigration and Vancouver real estate…
https://www.youtube.com/watch?v=IZs2i3Bpxx4
Garth,
re. letters dying.
Firstly, email is dying.
Secondly, there is an increase in package volume due to the redistribution of niche high street items to online stores.
Check out the USPS stats.
https://about.usps.com/who-we-are/postal-facts/decade-of-facts-and-figures.htm
Ben.
#35 Trojan Houae
All major policy decisions should be decided on by a referendum. That way any hair brain ideas by idiot politicians can be crushed by we the people…
We don’t live in a democratic society but a mob rule state. We are govern similar to the ex Soviet Union. You need to move to Switzerland if you want referendums to happen.
http://direct-democracy.geschichte-schweiz.ch