Salvation

JESUS modified

Just as some people (Trump supporters mostly) think there are only two kinds of music (country and western), millions believe only two investments exist. Houses (safe) and stocks (scary). It’s this uneducated view which has marched so many down a path of increasing risk and debt as they obsess over real estate.

Sure, you need a place to hang out. But property shouldn’t constitute the bulk of your net worth. That’s a gamble you’re going to lose. The people who will emerge whole from the economic and financial reset ahead are those who understand balance. So you might as well start now.

You bet, stocks are scary. Unless you have a seven-figure investment portfolio, don’t even go there. Too much risk, volatility and danger in buying individual equities. Owning one or three or five companies is gambling, as opposed to purchasing the whole market and having ownership in all of the big firms. That’s why ETFs (exchange-traded funds) are so superior. There are hundreds of low-cost products now available in Canada, and my own balanced portfolio holds 18.

Don’t buy mutual funds, either. Yes, they also offer diversification, but at a big cost. The average growth fund will ding you for a management fee of about 2.5%, not tax-deductible, which is more than double what you’d pay to hire your own financial advisor.

Some people argue stocks (like houses) have been gasbagged by cheap interest rates and central bank stimulus. That’s essentially right. Markets in New York hit all-time highs this week on the expectation more stimulus is coming in our post-Brexit world. After all, this monetary largesse keeps corporate debt costs down and pads the pockets of consumers who buy cars, Pokemon crap and trips to Cuba.

Meanwhile cheap interest rates and slow growth have bagged bonds, sending yields to historic lows. So people with a questionable degree of financial literacy, but great at Googling, think buying at condo at the most inflated level in history is safer than having financial assets because, ya know, there’s too much risk out there.

It’s time to revisit a few basic points. First, never put all your oeufs in one basket. Not in a house, a few stocks or a vintage Porsche. In this volatile, changeable world diversification is critical. So own a variety of asset classes – equities, bonds, trusts, preferreds, cash – as well as more than just maple. My portfolio has twice the exposure to the US and international markets as it does to Canada.

Second, you need balance. A winning mix for decades has been 60% in growth stuff (equity-based ETFs, for example) and 40% in fixed income (bonds and preferred shares etc.). After Brexit you should know why. When stocks were knocked flat by the stupidity of electors, bond prices surged on the demand for safe havens. If you owned both, you barely noticed the turmoil. Bonds may not yield much, but that’s not why you should own some. They reduce volatility (letting you zzzzz) and also rise in value to offset equity dips. As far as yield goes, preferreds are paying over 5% (with a sweet tax credit added on as sauce), and should make up half of the 40%.

Third, what you keep is more important than what you make. So taxes matter. Money earned as income, interest on a GIC or rent collected from tenants is 100% taxed. Income earned in the form of dividends, from preferreds (for example) is taxed less due to the dividend credit. Capital gains (from an ETF that rises in value) is 50% tax-free. Better yet, all income in all forms earned inside a TFSA is not taxed. Ever. No tax on RRSP growth, either, but withdrawals are added to your taxable income.

Fourth, stay liquid. That means your investments can be turned into cash quickly, should the need arise. GICs, for example, are usually locked up for years – you even have to pay tax on interest you haven’t received. That sucks. Houses, too, can turn illiquid and stay so for ages. Just ask people trying to find a buyer in Calgary or Halifax. And lots of scummy mutual fund companies have DSCs – deferred sales charges – which are penalties for cashing out before a set period has ended, often seven years. It’s a mutual fund prison which keeps a lot of people psychologically locked into a bad investment.

So, how has a balanced, diversified, 60/40, tax-efficient, ETF-based investment portfolio done lately, in a world of Brexit, Trump and ISIS?

Sweet, actually. It’s up a little over 7.2% on an annualized basis YTD, sailed right through the whole UK vote fiasco and proved the power of balance. So far this year the REIT fund has added 22%, the Canadian stock ETF is ahead 13%, the US stock equivalent up 7% and the emerging market ETF positive by 13%. All bonds (government, corporate, high yield, real return) are also in positive territory.

BTW, balance doesn’t refer just to a pile of financial assets. It’s also about life.

I’d tell you more, but I’m a stale, pale, male 1%er. What do I know?

156 comments ↓

#1 TurnerNation on 07.14.16 at 6:22 pm

Somebody tell our forum host hair Man Buns are ‘in’.
Appealing to the young uns. Try it.

#2 Jimmy on 07.14.16 at 6:27 pm

Honk!

#3 Felix on 07.14.16 at 6:29 pm

All you dog-loving bullon-licking idiots here might want to take note:

http://www.npr.org/sections/thetwo-way/2016/07/13/485834353/larry-the-cat-stays-put-amid-upheaval-of-british-politics

Cameron is irrelevant and gone, but Larry the cat remains.

Why?

Because cats are always the ones really in charge, you morons.

We are indispensible. Dogs are rodents, only dumber.

Now go help your dogs sniff each others’ butts, you canine-fetishist fools.

#4 Doug t on 07.14.16 at 6:30 pm

Balanced in an unbalanced world – I think there should be a worldwide shut down of the Internet for one week at least a few times a year

#5 Freedom First on 07.14.16 at 6:32 pm

It’s great that the blog’s message isn’t about male chauvinism again. Why do men date women 30 or 40 years younger than them anyway?

#6 Cheese on 07.14.16 at 6:35 pm

I put a few thousand in a global index, and maple index, saving up another lump sum for a preferred or bond index next. I save brokerage fees by investing in lump sums as I start in the world of investing. I suspect it could be done more efficiently however ;P

#7 Johnny D on 07.14.16 at 6:37 pm

Chances of an ETF provider such as Blackrock or Horizons going belly up? What would the implications be?

Groundless conjecture. — Garth

#8 RW_Z on 07.14.16 at 6:38 pm

Better than being a frail, male, pale with kale and a ponytail 99%er

#9 I Love the Lord on 07.14.16 at 6:40 pm

Honk, honk! The bible has answers to everyday questions and even supports you too Garth.

“Be well balanced, be vigilant and cautious at all times; for that enemy of yours, the devil, roams around like a lion roaring in fierce hunger, seeking someone to seize upon and devour.”

1 Peter 5: 8-9

#10 AB Boxster on 07.14.16 at 6:46 pm

My portfolio has twice the exposure to the US and international markets as it does to Canada.
—————————————-
So does that statement refer to your entire portfolio,or only that portion in equities.
It seems that there are many ETF’s that provide global equity exposure.
But is it possible to maintain global diversification of all asset classes, such as bonds, preferreds, REIT’s , as well?

My reference was to the growth component. — Garth

#11 Setting the Record Straight on 07.14.16 at 7:02 pm

Closed end funds

Looking for info on closed end funds domiciled in Canada.
Lots of US info.
Suggestions?
They are an alternative to ETFs.

Not really. Depends on the holdings, fees, tax-efficiency and, above all, liquidity. — Garth

#12 GsAmazon on 07.14.16 at 7:10 pm

“never put all your oeufs in one basket” – hahaha

I so appreciate these re-cap blogs…it is important for my morale ;)

But what do I know? I’m just a F33ON.

#13 not 1st on 07.14.16 at 7:14 pm

Gold a way better investment than a silly negative yield bond. Like the 12 trillion loser investors hold basically propping up insolvent govts.

And if a bond is to be held to protect against volatility, it pays you nothing for that. Similarly gold may pay nothing too, but its insurance against govt stupidity. And there is lots of that around.

A big gold position ensures your own stupidity. — Garth

#14 fleabitten monkey on 07.14.16 at 7:19 pm

Took a week off and went to Victoria to see some family. My bro and I are shooting the shit and the topic of retirement funding comes up. He is a 1 percent dude but friends with many of less income power (he is the salt of the earth). Well bro he says so many in Vic here are thinking the BCGEU pension is gonna fund them until they die. Others in non Govt jobs – banking on their folks and inheritance to keep em goin in their wrinkly years. He doesn’t know anybody who saves and invests. I just shake my head. 1 Person, anecdotal, but I hear it all the time.

#15 TS on 07.14.16 at 7:19 pm

My financial guy has me in a garth approved portfolio (16 ETFS, REITS, preferreds, no individual shares)

but he says he can’t get true 100% diversification without holding 5% of the portfolio in mutual funds (low fee)

Disagree?

#16 Steve on 07.14.16 at 7:23 pm

Hey Garth, any way you can post a few of your golden ETF’s :) give a HUGE fan a carrot.

#17 Ace Goodheart on 07.14.16 at 7:26 pm

RE: “pads the pockets of consumers who buy cars, Pokemon crap and trips to Cuba.”

True: Nintendo is up 25% since all the weird Pokemon crap happened this week and last:

http://venturebeat.com/2016/07/11/nintendos-stock-price-is-up-25-thanks-to-pokemon-go/

You can’t buy Game Freak (1/3 holder of the Pokemon company) because it’s privately owned. No one seems to know anything about “Creature Inc” (the company that owns the other 1/3 of Pokemon.

RE: “So far this year the REIT fund has added 22%” – yup that has been my experience also. However I bought REITs directly. They are rising nicely now. How could I not purchase equities which were at the time being sold for less than book value (some of them still are) and paid 8-12% distributions? At a time when interest on a “high interest” account is less than 1%?

There are going to be some sweet deals in the bond market over the summer and heading into the fall. Also finding preferred being sold for prices that are too low to make sense, even in an irrational market.

Anyone who wants to dump their holdings and jump into the Vancouver market, let me know. I’ll take your equities and fixed stuff off your hands for under book value. Hey, you’ll make it all back on the never ending rise of million dollar mouldy crap shacks (by 2020 they’ll all be worth a billion CDN for sure, and everyone will still be able to afford them).

#18 crowdedelevatorfartz on 07.14.16 at 7:26 pm

@#147 Brazil ExPat
“By the time she hits 35 it’s pretty much game over for a whole slew of reasons…..”
********************************************

Classy( and this coming from a man who embraces his Flatulence….)

Have you shared your observations with your wife?

#19 Smoking Man on 07.14.16 at 7:27 pm

Nice ain’t so nice. See how retarded the English language is.

70 dead. Let me guess, It was a Buddhist.

#20 What about currency risk? on 07.14.16 at 7:30 pm

Should intentional investments be in foreign currency or hedged to Canadian dollars at this point in time?

#21 Maxwell C. on 07.14.16 at 7:30 pm

@Cheese. Just switch to Questrade. Zero fees to buy any USA or Canadian-listed ETF. ZERO. Doesn’t matter if it’s one share or a thousand shares.

#22 Etobicoke Pete on 07.14.16 at 7:31 pm

DELETED

#23 Frank on 07.14.16 at 7:36 pm

So if markets and RE are both overpriced and balance is important then I an go ahead and buy a place in Vancouver given the rule of 90 applies?

#24 The Spectre on 07.14.16 at 7:37 pm

Garth,
Don’t get your fixation with Trump.

Bernanke and his disciples (Yellen included) are waaay more dangerous than him.

#25 Entrepreneur on 07.14.16 at 7:43 pm

“BTW, balance doesn’t refer just to a pile of financial assets. It’s also about life.”

That is for sure. Life is about people and how we interact with nature. We should have upmost respect to earth and it’s creatures.

This is why small businesses are so important: that ground level savvy of that respect.

Also, the different levels of government listen to the people that live within that jurisdiction and bring forward their views and fight for them. Most of the time I see photo-ops of MLA/ML /etc. with a practiced smile. Have they forgotten the people? I think so, about 30 years ago or even longer. Just look at Vancouver housing, at the raw logs shipped out of B.C., at all the mills closed (individuals have to buy to keep open) etc., then have casinos, lottery tickets to replace the revenue (easier than dealing with the real issues).

I think the Brexit should be a wake-up call and do not ignore the people of the land. The people should be heard loud and clear through our elected members of parliament paid through with our taxdollars.

Ignore no more!

#26 Frexit on 07.14.16 at 7:47 pm

Frexit here we come !

Sucks for the bankers.

#27 Doghouse Dweller on 07.14.16 at 7:53 pm

#11 Setting the Record Straight
Looking for info on closed end funds domiciled in Canada.
——————————————————————

http://globefunddb.theglobeandmail.com/gishome/plsql/gis.show_closed_end_rep

#28 A Canadian Abroad on 07.14.16 at 7:56 pm

As a financial advisor/investor/trader myself, you make some great points Garth.

I firmly believe in Financial Literacy and impart those lessons onto others as often as possible. Schools need to teach the basics and fail to do so.

But I have to disagree with not recommending mutual funds and recommending ETF’s. While I am a big believer in ETF’s for small portfolio’s, those with 7 figures can do better with mutual funds with an advisor. 2.5% MER’s change to .30 or even .20 + advisor fees (depending on portfolio) and the advisor fees are tax deductible, leaving MF’s a much better value for diversification.

ETF’s can be a trap as well, there are thousands of them and care and due-diligence are paramount. Picking 18 EFT’s may not be the best diversification policy either as sectors and markets can overlap (eg. SPX, VTI or VVI). But I would assume your advise is not to those like I, but to new investors who do not know this.

I own a globally balanced portfolio of 60/40 actively managed MF’s as well. But no ETF’s. I am currently paying less than 0.3% MER + advisor fees. My current return is 4% YTD, but my risk tolerance may not be as high as yours with 7.7%.

Full disclosure: my portfolio consists of: MAW102, MAW250, ATB203 + 20% Cash

Would you like to share your portfolio?

Overall, I applaud your efforts in teaching financial literacy.

#29 Frexit on 07.14.16 at 7:57 pm

DELETED

#30 Young woman on 07.14.16 at 7:58 pm

@ freedom first #5

Not because we want to see your wrinkly old butt that’s for sure.

#31 Chris Dawson on 07.14.16 at 7:58 pm

I think people have to understand that 100% taxed means it is 100% taxable not that 100% is gone in taxes.

Many people that don’t understand taxes can be confused by this. Also, there is no payroll taxes on interest, pension, C.P.P., OAS income which is another 7% or so a year in tax savings.

We only have interest income from cashable GIC’s, GIC’s, government bonds and strip bonds in our non-registered accounts, TFSA’s.

We have only $30,000 left each from our RRSP’s converted to RRIF’s this year as we retired earlier at 55 and made it so we would deplete most of it by 65 when our C.P.P., OAS are paid to us which is in Novemeber-December-2016.

We will pay not income taxes on our $2,000 RRIF withdrawals each year as the pension tax credit makes it tax free.

We will get this $4,000 tax free for the next 20 years and then it will be fully depleted.

Our TFSA’s in strip bonds grow tax free too by $10,000 interest a year for the next 25 years.

Our long term government bonds are paying $30,000 interest for the next 25 years and our GIC’s are paying another $5,000 a year in laddered terms.

All of our $35,000 annual interest is all tax free as we each get the age amount and personal amount of $17,500 each per year.

This leaves only our C.P.P., OAS this year which is $18,000 a year for me and $16,000 a year for my spouse.

Our life insurance policies of $125,000 each will also be paid tax free to our beneficiaries.

The only income taxes we will pay is $7,500 a year which is low compared to our total C.P.P, OAS, interest income, RRIF income of $83,000.

We also get back $800 in OTB this year so really $6,700 in total income taxes paid on $83,000 of annual total income is a low 8.072% income tax rate.

We always max our $11,000 in TFSA’s a year too so that will $600 a year added in tax free income over 25 years.

This means in 10 years, another $6,000 of tax free annual interest. This was only possible by us being debt free since we were 30 years old.

#32 Mark on 07.14.16 at 7:59 pm

The Canadian stock market is at a P/E of around 15, hasn’t seen any index return since 2007, has a dividend yield that nicely trounces even 30-year GoC debt by a significant margin, and is chock full of firms closer to their cyclical bottoms, than their cyclical tops.

What’s there not to like about it? Yes, the Edward Jones guy on CBC last night was trying to usher people into the US stock market, with a fancy chart showing outperformance of the S&P500 versus the TSX index since 2010. But the real value lay in Canadian firms at this point, with a wide swath of the market trading substantially beneath a realistic replacement cost of the assets thus represented.

Chances of an ETF provider such as Blackrock or Horizons going belly up? What would the implications be?

The custodian/trustees would call a meeting of the ETF unit holders and they’d appoint another management firm to carry on. At least that’s how it would work with Blackrock ETFs which are not obligations of BlackRock, but merely engage the management services of BlackRock. I’ve never read a Horizons prospectus, so I couldn’t answer your question there.

#33 ROCK BEATS PAPER on 07.14.16 at 7:59 pm

“The people who will emerge whole from the economic and financial reset ahead are those who understand balance.”

Cash and gold should be 10% each at this point. Even the balanced will not remain whole because today’s situation is more like 8 decades ago rather than the last few. Then, bonds and stocks went down together starting in mid ’28 for bonds and 29′ for stocks.

Alas, its not the ’30s. Its a lot dumber, with technology helping people blow out portfolios entirely with the click of a button. Trump/Clinton…etc…

#34 Lee on 07.14.16 at 7:59 pm

Watching Hot Property on cp24 tonight. They sounded quite bullish on Toronto real estate for the foreseeable future. What am I missing Garth? Sounds like property owners can’t make a wrong move.

For a lawyer you’re pretty naive, eh? — Garth

#35 Nodebt on 07.14.16 at 8:02 pm

Hey Garth, so if I had a million I’m better off putting it into a stock portfolio?

#36 young & foolish on 07.14.16 at 8:02 pm

Is regional diversity over-rated in our increasingly interconnected world?

#37 Who Cares on 07.14.16 at 8:06 pm

Invested in private stocks. Dividends of 25%-76%annually. Nothing beats that! Some readers on here probably know which company I’m talking about as they’re invested themselves!

BTW taxes are a lot higher this year because of Notley!!!

Private equity = no liquidity. Guess why they pay a lot? — Garth

#38 albertaguy on 07.14.16 at 8:08 pm

top 10 closed end funds on tsx

Show entriesSearch:
Ex. Name Ticker QMV($) HQ Region HQ Loc. Sector Sub Sector Portfolio
TSX Central Fund of Canada Limited CEF.A 4,149,797,549 Canada AB Closed-End Funds closed-end-funds
TSX Sprott Physical Gold Trust PHY.U 2,153,114,430 Canada ON Closed-End Funds closed-end-funds
TSX Canoe EIT Income Fund EIT.UN 978,510,526 Canada AB Closed-End Funds closed-end-funds
TSX Sprott Physical Silver Trust PHS.U 864,419,692 Canada ON Closed-End Funds closed-end-funds
TSX Dividend 15 Split Corp. DFN 616,496,006 Canada ON Closed-End Funds closed-end-funds
TSX Partners Value Split Corp. PVS.PR.D 600,673,690 Canada ON Closed-End Funds closed-end-funds
TSX PIMCO Global Income Opportunities Fund PGI.UN 555,708,622 Canada ON Closed-End Funds closed-end-funds
TSX Economic Investment Trust Limited EVT 547,514,663 Canada ON Closed-End Funds closed-end-funds
TSX Royal Canadian Mint – Canadian Gold Reserves MNT 496,158,130 Canada ON Closed-End Funds closed-end-funds
TSX Dividend Growth Split Corp. DGS 368,158,276 Canada ON Closed-End Funds closed-end-funds Showing 1 to 10 of 191 entriesFirstPrevious12345…20NextLast

#39 Personal Finance Rookie on 07.14.16 at 8:14 pm

Hey Garth

I am a rookie when it comes to Personal Finance. When you talk about preferred shares and bonds as a part of the fixed income, are you talking about picking individual bonds and preferred shares or bond ETFs and preferred share ETFs?

Thank you.

If you have millions, you could pick a selection of individual securities. If not, go ETF. — Garth

#40 Andrew Woburn on 07.14.16 at 8:15 pm

#7 Johnny D on 07.14.16 at 6:37 pm
Chances of an ETF provider such as Blackrock or Horizons going belly up? What would the implications be?
=====================

As far as I can see, there is virtually no risk of an ETF management company going down because they are not borrowing money to invest in ETF funds.

There seems to be two potential areas of concern with ETF’s. One is the risk of investing in small, specialized ETF’s which might be liquidated at a loss if they don’t work out. The other is the possibility of a short liquidity crunch in a large ETF if its investors panic en masse and rush for the exits.

If the ETF has to dump underlying assets to pay redemptions, it would hurt the market and could lead to short term discrepancies between the overall trading value of the ETF and the aggregate market value of its holdings. In other words, an investor could temporarily be slightly worse off for holding assets through an ETF rather than directly.

I don’t see this as particularly dangerous. The situation should rapidly stabilize once redemption demands can be met. However it is worth being aware of the possibility to avoid being panicked into selling should it ever occur.

Currently the greatest risk of such an event seems to be with the larger bond ETF’s since almost everybody is making essentially the same bet and there might not be many buyers if a lot of people want out their ETF in a hurry.

#41 BOOM! on 07.14.16 at 8:18 pm

I tend to agree with your outlook (most of it).

In the US a great S&P fund, or total stock market, bond funds can be had for annual expense fees of .10 to .05 per annum.

I also want a portion of my equities in decent dividend eating stocks, JNJ, MMM, XOM or even MCD. Their dividends tend to be better than ‘safe stuff.’

ETF’s for sectors, REITS, fine and dandy.

Oh, net worth has now exceeds 1MM
(sorry, that’s still not in 1% land here).

M64WI

#42 Snoop doggie dog on 07.14.16 at 8:20 pm

With the HBP, would it make sense to pull out 25k in rrsps, shove them into the tfsa and let them grow tax free, while paying back the rrsp over the 15yrs or less (had originally planned to use the rrsp for down payment but saved up more to stay balanced per this little blog)

A HBP withdrawal not used to buy a house is added to your taxable income in a single year. — Garth

#43 mortgagebroker on 07.14.16 at 8:22 pm

hey garth, what about borrowing to invest? If I can use line of credit at 3.2% to buy a balanced portfolio of etf’s that average say over 6% over 20 yr period what you think of that?

#44 ANON on 07.14.16 at 8:27 pm

First, never put all your oeufs in one basket. Not in a house, a few stocks or a vintage Porsche.

Tout a fait d’accord! First some popcorn (always look on the bright side of life!), then a lot of beans, some cheap whisky (sorry, not everyone can afford the GreaterFool single-malt investment advice), some pennies, nickels, dimes, quarters, dollar coins, and if anything is left after that, some of those small notes from the bank which people tend to accept for tuna cans and other small needs, radios, flashlights.
Personally I’m in the no-guns territory, although (or perhaps because of) having some military training. Maybe it’s because I’ve seen deflation happen, and I reckon it ain’t the bullets which get you (unless you insist on using them), but abject poverty instead.

#45 Joe2.0 on 07.14.16 at 8:31 pm

Banks supply the money.
Loan it out cheap.
Inflate housing markets.
Deflate cash holdings.
Inflate commodities, food…
Increase banks ledgers via the inflated RE prices.
Increase mortgages down the road at renewal.
Rinse and repeat.
The Golden Rule – Those who have the Gold Rule.

It’s the perfect ponzi.

#46 Frexit on 07.14.16 at 8:33 pm

Either this blog stands with the French people or sides with the Islamic Terrorists.

People have a right to their own borders. This is the end of the EU.

#47 NoName on 07.14.16 at 8:45 pm

Jeremiah 29:7
Seek the welfare of the city where I have sent you into exile, and pray to the LORD on its behalf; for in its welfare you will have welfare.

#48 Heisenberg on 07.14.16 at 8:48 pm

How has a balanced, diversified, 60/40, tax-efficient, ETF-based investment portfolio done annually since, let’s say 2005?

Great. — Garth

#49 parksville senior on 07.14.16 at 8:50 pm

You nailed it today Garth.
Your financial seminars can be really simple
(1) Real estate investments—location ,location , location
(2) All investments–liquidity , liquidity, liquidity

Also investors should know how expensive will it be to convert your assets to cash.
Real estate-very expensive
mutual funds- annoyingly expensive
traded securities-Cheap

#50 DEVELOPERS ON A TEAR on 07.14.16 at 8:54 pm

No slow down here in Vancouver. Developers buying a lot of older buildings in Downtown Vancouver and developing the space. They will either tear this market and make a killing or end up with tears. The buyers of the development anyways. For the owners, it’s a lottery win.

#51 westcdn on 07.14.16 at 8:58 pm

If I am not lying on my back getting over injuries, I like to remise. I remember my mother crying when I returned from work. She was doing her annual visit – my wife never liked her but that is another set of stories. What is wrong I asked? She was told at the neighbour bank branch that they don’t serve Indians.
Sure we were poor but that one sticks in my craw.

She fought a lot of strong head winds and would not normally put up that kind of BS but then she had her weak periods – as so do I. I have a cold fury with a long memory and will wait. I believe in Karma – reap what you sow.

My brother and I are very similar. We like to laugh about the fallibilities of our blood lines. We concluded that the secret to happiness is to set the bar of life low but we won’t pursue. Hmm, humility is for the flawed (Garth) – guess again!

My father and I had a tendinous relationship. I am more like him than I care to admit. We drove out to Kelsey Bay where the Queen of Prince Rupert used to dock. Sayward, BC, is a beautiful place if you like big fir trees. If you are in the area, go visit Telegraph Cove. Someone made a major effort to convert that old whaling station into a nice spot – in my youth it was a junk pile.

There was old building on floats lying on the shore. My father claimed it was the whore hotel that traveled up and down the coast of BC. The gals were treated extremely well by the single guys who were stacked like potatoes in bunkhouses. Well I have been a potato and am not returning.

#52 Nelley on 07.14.16 at 8:59 pm

#28Frexit-this blog is about money-the French were sold out long ago by the richest, most powerful French (like many countries)-that isn’t our problem. Complain to Soros.

#53 Ryan on 07.14.16 at 9:00 pm

20% of someones portfolio in preferreds. Preferreds to my limited understanding are big in Canada only. They’re used by retail investors, not the big guys. I don’t have confidence in them, it seems to specific and niche to Canada. VCN, VUN, VAB… those I get. ZPR, CPD, nope. I had about 5% of my portfolio in them. Then they were punished hard and now make up only 4%.

I’m not convinced about preferreds. In the words of Kevin O’leary, they’re toxic waste stay away.

Better to stay away from mutual fund-flogging Kevin. Preferreds pay a great dividend, are tax-efficient and will careen higher in value when rates start inching up. This is the time to buy. — Garth

#54 Ed on 07.14.16 at 9:05 pm

Pretty much 5 stocks needed for retirement. BCE,RY,TRP,CN,Fortis. Good international and US exposure …great dividends and growth. Rebalance once a year and go golfing.

#55 Don't Drink the Kool-Aid on 07.14.16 at 9:09 pm

Where do we go from here? The past 3 decades provided the greatest global economic expansion in history.
We’re nearing an end in this “globalization cycle.” As we de-globize, the economic power centres Americas, EU & Asia will focus more on their respective domestic economies, the consquence of which is an economic climate with increased volatility as excess leverage creates clear winners and losers. Bonds are clearly signalling a new future path. Buckle up folks, the last leg of this ride is a real neck snapper.

33/33/33 Diversified equities, Property, Cash

#56 adam on 07.14.16 at 9:20 pm

For #16, you can definitely get 100% diversification with less than 10 funds. Read canadiancouchpotato.com thoroughly!

Somewhat true with a small portfolio. Certainly not as the assets grow larger. — Garth

#57 ANON on 07.14.16 at 9:33 pm

#55 Don’t Drink the Kool-Aid on 07.14.16 at 9:09 pm

Where do we go from here?

Excellent question. All available past experience, as well as the natural order of all things ever observed on a large enough scale, compels to affirm that everything is going down, after climbing up. Although some insist it is different this time. Icarus insisted, also, and all he got was a “hubris” T-Shirt.

#58 bigtowne on 07.14.16 at 9:34 pm

Venezuela is starving. We grow food. We need to sell some exports and since we want to diversify from oil why are we not selling Venezuela some food?

We give tons of money to all the United Nations refugees which is fine but to continue to do the good charity we need to back it up with some business or exports.

Why do we insist on giving to area in the world that have been and are always in crisis for years with no change on the horizon? We can make a big dint in hunger; poverty; and expand our exports to the Latin American market where we are not on their kill list.

#59 The Great Gazoo on 07.14.16 at 9:37 pm

Excellent post tonight Garth. Received similar advice from a fee only advisor 8 years ago and only partially followed it – Bad Move on my part!

Best advice I ever received and it was nicely done in a little over an hour. It all sounded good, but clearly I was not fully committed. Some of us have to learn the hard way. Too bad.

You are so right that owning individual stocks is a form of gambling – and takes a lot of your time.

I am in the process of moving from individual stocks to low cost well diversified ETFs. I am now committed. Wish I would have found Jesus a lot earlier in life.

#60 Brazil ex-pat on 07.14.16 at 9:42 pm

Trump just got millions more votes today……..

#61 crowdedelevatorfartz on 07.14.16 at 9:47 pm

@#58 bigtowne
“why are we not selling Venezuela some food?”
********************************************

In a nutshell?
The leader and his asskissing psychophantic butt licking weasel socialist minions STILL dont believe there is a problem………Low oil prices, a bankrupt econnomy where even toilet paper is a luxury, hospitals without even bandages, doctors without medicine, kinappings, food riots everywhere, international companies leaving for the safety of their Expat employees, a worthless currency…….
And according to the incompetant donkey running the country……
Its all a conspiracy controlled by the evil USA…..

http://www.google.ca/url?url=http://www.upi.com/Top_News/World-News/2016/07/13/Venezuelan-military-takes-control-of-five-ports-in-economic-war-strategy/9531468413794/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiE4N7YrPTNAhUC7GMKHfxdBF0QqQIIIzAC&usg=AFQjCNGO-sFQgzX-oNX6v4s8wy8YavqrUA

#62 ulsterman on 07.14.16 at 9:48 pm

Just a word of warning to the younger readers of this blog. The tone of certainty that THIS TIME the peak is in, and with all this media talk the decline/crash is imminent is palpable! Those of us who have been reading various housing blogs since 2006 have seen this jubilance before. Don’t be too sure that the end is nigh. Been there, done that. Now the Burnaby house i rent is worth $1.5m MORE than then. Yup North Burnaby duplex lot bought in 1999 for $294k. Worth about $800k in 2008. $1m in 2011. $2.4m in 2016. Since 2006 people have been talking bubbles in Vancouver and it’s been a very painful lesson for us renters.

It’s an old one but it’s true. This market can go on and on and ON, much longer than you think.

#63 Etobicoke Pete on 07.14.16 at 9:51 pm

Delete all you want, but Canadians will wake up to the news and draw their own conclusions.

#64 crowdedelevatorfartz on 07.14.16 at 9:56 pm

gee
It took a Brazilian politician to attempt what Canadian politicians have been unable to do for decades…….

Cut off the endless govt subsidies to “zombie” companies in Quebec…..

http://www.reuters.com/article/us-brazil-canada-wto-exclusive-idUSKCN0ZV06X?il=0

#65 Apocalypse2016 on 07.14.16 at 9:56 pm

France is having a heart attack tonight.

America will have its own starting in 4 days with the Republican Convention.

How many wll die in Cleveland, in that open-carry state?

Massive drought is taking hold in the east.

Air Canada has just cancelled all future flights to Rio – Brazil is in too much economic chaos. The Olympics will be a disaster.

It is spreading so fast now, all over the world. Europe and Britain are about to implode.

The Summer of Hell is here.

#66 ANON on 07.14.16 at 10:08 pm

#58 bigtowne on 07.14.16 at 9:34 pm

Venezuela is starving. We grow food. We need to sell some exports and since we want to diversify from oil why are we not selling Venezuela some food?

Are YOU growing this food you talk about? Then please, by all means, sell Venezuela some of YOUR food, see how it plays out with the loan YOU took for growing that food, when Venezuela’s promises are worth zilch.

#67 Smoking Man on 07.14.16 at 10:14 pm

#60 Brazil ex-pat on 07.14.16 at 9:42 pm
Trump just got millions more votes today……..
……

And Hillary lost millions. Just saw the aftermath clips of Nice.

So sad…….. Even if the mind Fkd SJW saw the clips it would make no difference. They would still be sympathetic to the stone age ideology.

The teachers got them young.

Dr Smoking Man
PhD Herdonomics

#68 Joe2.0 on 07.14.16 at 10:14 pm

Jesus loves the 1%er’s too, but also said it’s easier for a camel to cross through the eye of a needle then a rich man into heaven.

Something about money establishing ones moral standards bar height I suspect…

#69 BOOM! on 07.14.16 at 10:16 pm

Garth-

Love the last line in tonight’s post. “I’d tell you more, but I’m a stalker, pale, male 1%e. What do I know.”

Absolutely brilliant, self-effacing, and you surely have forgotten more than most readers may ever ‘know.’

Balance IS life. Got a good chuckle out of the last line.

Enjoy mostly the accurate, and true financial advice to all of us. Will even look into exchanging some of those mutual funds for the ETF versions. Don’t know if there is really any advantage, except the ability to ‘trade’ during the trading day, which I mostly don’t do. The costs are the same, performances nearly identical.

As for my dividend growth stocks, which are still a small slice of the whole, I’ll keep them for now.

Great post! Now it’s time for music.

M64WI

#70 BOOM! on 07.14.16 at 10:17 pm

oops “stalker’ should be “stale.”

dam,,missed that one!

#71 Joseph R. on 07.14.16 at 10:25 pm

#43 mortgagebroker on 07.14.16 at 8:22 pm
hey garth, what about borrowing to invest? If I can use line of credit at 3.2% to buy a balanced portfolio of elf’s that average say over 6% over 20 yr period what you think of that?
—————————————-

Opening a margin account at a securities broker is a common way investor (speculators) borrow to invest.

Read this material on buying stocks on margins:

http://www.investopedia.com/university/margin/

Now that you know what it is, don’t do it.

#72 Peppy sue on 07.14.16 at 10:29 pm

Moving our portfolio to a fee-based advisor was the best thing we ever did. Regret not doing it sooner.

#73 Smoking Man on 07.14.16 at 10:51 pm

#68 Joe2.0 on 07.14.16 at 10:14 pm
Jesus loves the 1%er’s too, but also said it’s easier for a camel to cross through the eye of a needle then a rich man into heaven.

Something about money establishing ones moral standards bar height I suspect
…..

Getting rich is just a few consecutive coin tosses and betting right. One might get the feeling they are superior. Not this dog. He knows every big bet can wipe you out. That’s why I only go all in on sure things.

Problem is the mortal Man. Shit sorry ladies that was not gender natural. I’ll try again.

The mortal human is scared shitless of risk. Years of teacher saying if you don’t eat your meat you can’t have any pudding.

Do your home work dog. Prove to me that you will obey, memorize the chant and regurgitate on my demand and will reward you with an A.

And then they come up against a dyslexic with great rubber band elastics aim when their backs are turned.

Like the femanazis trained teachers pets. They don’t dare debate a Smoking Man that don’t play by the rules.

Having a learning disability is so so under rated.

#74 Self Directed on 07.14.16 at 10:53 pm

“Second, you need balance. A winning mix for decades has been 60% in growth stuff (equity-based ETFs, for example) and 40% in fixed income (bonds and preferred shares etc.). – Garth”

For Fixed Income/Preferreds, are there ETF’s for that?

I can’t find a list of good dividend paying preferreds… only ETF’s that appear to pay fairly decent dividends.

Can anyone suggest some good Ticker Codes?

#75 Mark on 07.14.16 at 11:17 pm

“If the ETF has to dump underlying assets to pay redemptions, it would hurt the market and could lead to short term “

Just a technical note here. For an ETF, a redemption isn’t a matter of selling stock into the market, but rather, exchanging units of the ETF for baskets of the underlying stock that is “held” in the vaults of the custodian to the ETF under the control of the ETFs trustee. Advised, of course, by the management firm (ie: BlackRock).

So in a redemption panic, all an ETF has to do is start handing out baskets of the underlying assets. The redeemees to the ETF thus have to attempt to sell such assets into the market, and assume the risk of the asset being illiquid.

Hence, the ETF sponsor isn’t in danger during such a ‘run’.

Some ETFs, however, are full of derivatives, which may be written by entities related to the management company. Leveraged ETFs, for instance. Or ones that use fancy synthetic structures. I’d personally advise avoiding those. Stick with high-quality Canadian ETFs that directly represent baskets of stocks held in custody, with a reasonable redemption mechanism, and you’ll be a lot safer in those periods of high systemic risk than you would with some Frankenstein structure dreamt up by a promoter to save a few bp in taxes or hedge currencies.

Not going to name any of the names of the ‘bad’ ETF companies, other than to say that 100% of my ETF portfolio is with Vanguard and BlackRock ETF products.

#76 Old School on 07.14.16 at 11:19 pm

The balanced diversified ETF portfolio is a very responsible way to invest. For most people. My kids (12 & 10) have an RESP is very much the picture of the balanced and diversified ETF portfolio.

However…my financial literacy came early, well before the ETF ‘revolution’. My old man was (is) a stock market enthusiast. He has always been a ‘conservative’ investor. Before I entered my teens in the 80’s he introduced me to blue chip stocks and the beauty of dividend growth and dividend reinvestment and most importantly the concept of compound growth. He taught me how to read stock charts. The value of being contrarian. How to use leverage at the correct time (at maximum fear). And how to be patient. Most importantly, he taught me how to be disciplined.

He’s almost 90. We talk several times a week about markets. He called a bottom in gold and oil back in February – God bless him. We both made a small fortune. We’re both accumulating positions in uranium ETF (URA)…’cause being contrarian is easy…we also both use options to write covered calls to trim and naked puts on positions we want to enter.

So yes, we both have the portfolios that get the GT seal of approval for single stocks. But neither of us started investing in ETFs. He has a portfolio well north of 8 figures and I could have retired 10 years ago at 36 with my investments. Is this a historical anomaly…I doubt it.

I asked him a couple of years ago what inspired his interest in the stock market. He told me that in university a professor told him to use his income (he was a dentist) as a generator of income from investments and encouraged him to buy real estate. He tried it in Toronto and didn’t like the hassle and cost.

The moral of the story…there’s a lot more to financial literacy than buying a globally diversified portfolio of ETFs.

#77 Smoking Man on 07.14.16 at 11:25 pm

#72 Peppy sue on 07.14.16 at 10:29 pm
Moving our portfolio to a fee-based advisor was the best thing we ever did. Regret not doing it sooner.
……

You ever met a gambler.. Makes fee bases advisor’s look like Gartho.

This dog has a low boardom tolarance. The rush is amazing when the wind blows your sails. The depression when there is no wind. Suicidal.

Safe is so over rated..

#78 SWL1976 on 07.14.16 at 11:51 pm

You certainly know how to churn out an interesting blog post 6 days a week and moderate a jungle of comments

#79 Henrik on 07.14.16 at 11:51 pm

Garth,

You always talk about the 60/40 ratio. I’m wondering if you consider that to be the right mix for every age group? Is the “100 – your age” formula worthless?

Secondly, do you do the preferred stock portion of your 40% growth part also through ETFs? If so, do you have good suggestions?

I come here every now and then and it’s always both informative and entertaining. And consistent, which I appreciate.

#80 Ole Doberman on 07.15.16 at 12:24 am

The people who will emerge whole from the economic and financial reset ahead are those who understand balance. So you might as well start now.
———————————————————-
Garth what does this mean – reset.

Is this what the gold bugs keep talking about where gold gets revalued over night to 5-10K with a gold backed something or other.

I thought only the elites are suppose to know about this and save their hydes, while the 99 percent lose their shirts.

#81 BG on 07.15.16 at 12:27 am

As a dual French/Canadian citizen I feel quite sad and frustrated tonight.

I understand why some people are mentioning a Frexit or closing borders, but it would not address the problem at hands.

But we’ve seen most (if not all) of the recent terrorist attacks in Europe were executed by young Europeans from Arab or North African ascent.
And their parents or grand parents immigrated to France decades ago.

Personally I think immigration policies in the Western world tend to be extremely naive.
And their side effects are covered up political correctness.

It’s time to admit that some culture integrate better with each others than others. Some integrate faster than others.
People are different, cultures are different, integration takes time and proactivity.

#82 turn of the tide on 07.15.16 at 12:35 am

I’m so happy we’re talking about equities investing again! More please!! So refreshing!

#83 turn of the tide on 07.15.16 at 12:38 am

For example, what is your favorite dividend ETF? to kick it off

I’m holding vab, xre, xiu, vfv, cpd, xsh, xsp, xre, xef.

#84 Debt's Dark Embrace on 07.15.16 at 12:41 am

No need to pay management fees or an advisor if you are in it for the long term. Buy the big six Canadian banks and get the safest 4-5% dividend out there with some capital gains over the long haul.Reinvest the dividend if you are not retired yet. Buy and forget about it, you will do ok. No need to pay someone to rebalance your portfolio twice a year.

#85 Marius on 07.15.16 at 12:52 am

http://vancouversun.com/news/local-news/feds-after-dragging-heels-plan-crackdown-on-vancouver-real-estate-tax-cheats

#86 Bullionlicker on 07.15.16 at 1:19 am

Hey Mark Dawson, didn’t realize you had a twin named Chris.

#87 NEVER GIVE UP on 07.15.16 at 1:33 am

The news here in BC is consistently dealing out the words Bubble, Crash and overpriced.
6 months of this every day MSM bombardment could well make it happen.

#88 waiting on the westcoast on 07.15.16 at 1:57 am

#37 Who Cares on 07.14.16 at 8:06 pm says “Invested in private stocks. Dividends of 25%-76%annually. Nothing beats that! Some readers on here probably know which company I’m talking about as they’re invested themselves!

BTW taxes are a lot higher this year because of Notley!!!

Private equity = no liquidity. Guess why they pay a lot? — Garth”

Garth is totally correct here. A big chunk of my net worth is tied to operating private companies that provide a big return but challenging to find buyers who can or wish to lock in on a business they have to be responsible for.

Also – even though I know I should sell off some of those assets, the return they provide is addictive so you end up not diversifying which is important from a safety perspective.

I have thought of setting up a limited partnership so outside investors could come in and not be involved in the day to day management but you still have to secure the individual investors and then deal with the “why aren’t I making money this year” even when you have had 5 years of phenomenal profits prior. Same headache Garth has when the market declines…. ;-)

#89 Metaxa on 07.15.16 at 2:18 am

On the first day, God created the dog and said “Sit all day by the door of your house and bark at anyone who comes in or walks past. For this, I will give you a life span of twenty years”. The dog said “That’s a long time to be barking. How about only ten years and I’ll give you back the other ten?”

So God agreed.

On the second day, God created the monkey and said “Entertain people, do tricks, and make them laugh. For this, I’ll give you a twenty-year life span”. The monkey said “Monkey tricks for twenty years? That’s a pretty long time to perform. How about I give you back ten like the dog did”?

And God agreed.

On the third day, God created the cow and said “You must go into the field with the farmer all day long and suffer under the sun, have calves and give milk to support the farmer’s family. For this, I will give you a life span of sixty years”. The cow said “That’s kind of a tough life you want me to live for sixty years. How about twenty and I’ll give back the other forty”?

And God agreed again.

On the fourth day, God created man and said “Eat, sleep, play, marry and enjoy your life. For this, I’ll give you twenty years”. But man said “Only twenty years? Could you possibly give me my twenty, the forty the cow gave back, the ten the monkey gave back, and the ten the dog gave back. That makes eighty, okay”?

“Okay” said God “You asked for it”.

So that is why for our first twenty years, we eat, sleep, play and enjoy ourselves. For the next forty years, we slave in the sun to support our family. For the next ten years, we do monkey tricks to entertain the grandchildren. And for the last ten years, we sit on the front porch and bark at everyone.

#90 The Awakened One on 07.15.16 at 3:10 am

Hey Blog dogs!

I found out what Garth does in his free time! Check this out:

https://www.youtube.com/watch?v=jT4_ohTS3Os

Maybe send this to those gals who bashed him as a sexist, misogynist guy… they’ll invite him back in no time! :O)

#91 JPea on 07.15.16 at 3:47 am

From Armstrong economics…”You do not allow these refugees into Europe while the economy is also declining and unemployment among the youth is over 60% in parts of the EU. This is just insanity.”

..this will add support to Brexit which stopped the EU from making immigration to Britain as unfettered as it was for Germany, France and many other countries in Europe.

Despite the horrid Paris attack killing 130, the Nice attack killing at least 84, the sexual assualts in Germany and elsewhere from so called poor refugees. Garth still stands tall on the shoulders of this disastrous policy of open immigration and against Brexit.

Shameful Garth, I have a wife from Asia and she had to provide untold documents proving what University she graduated from and what her family background is on top of the thousands of dollars paid to get here. Garth would you care to explain to the victims of both attacks, justify to the families of over 200 people that the EU policy of immigration is of such great success?

Wouldn’t be surprised if this was Not posted…sad indeed, sad for the families and lives lost, only a politician can justify that according to you Garth you need not even bother to be able to speak the TWO OFFICIAL languages before coming here with questionable background checks.

Justify the open door EU immigration policy to those families that lost their husbands, wives, and children.

have the guts. I wholly supported Brexit from Day 1.

As stated. Brexit was about brown people. The fact remains even if immigration was halted and borders sealed, terrorism would continue. This simplistic, xenophobic belief is what fosters tribalism, protectionism, mistrust, wider conflict and suffering. Don’t go there. — Garth

#92 Ugly Sue on 07.15.16 at 4:08 am

Bwahahahhahahahahaaha…the NDP answer to a crumbling economy…tear down the remnants of the past so they aren’t embarrassing the government anymore.

http://business.financialpost.com/news/property-post/landlords-scramble-to-fill-near-empty-skyscrapers-dotting-calgary-skyline-were-not-overbuilt-were-under-demolished?__lsa=ef92-bc8e

#93 Learner on 07.15.16 at 4:10 am

Hi Garth,

Does that mean all of the fixed income portion is in maple? if so, that is about 60% (40% + 60% * 1/3). Would it be too heavy in Canada which only counts for 3% of world economy?

#10 AB Boxster on 07.14.16 at 6:46 pm
My portfolio has twice the exposure to the US and international markets as it does to Canada.
—————————————-
So does that statement refer to your entire portfolio,or only that portion in equities.
It seems that there are many ETF’s that provide global equity exposure.
But is it possible to maintain global diversification of all asset classes, such as bonds, preferreds, REIT’s , as well?

My reference was to the growth component. — Garth

#94 ROTFL on 07.15.16 at 6:30 am

“Garth, Don’t get your fixation with Trump.”

You’re watching a man face down his nightmare in real time. It’s going to get worse as the realization slowly goes from “impossible” to “possible,” then perhaps to likely and even inevitable.

People whose beliefs for Trump being unpossible because of his low numbers with women or hispanics have already seen polls showing that it might be winnable without them. Those who mumble “electoral college” as a catechism may have a ways further to go, but even Nate Silver is now putting Trump on a 34%-37% chance, and that’s with Florida, Ohio and Pennsylvania all in Clinton’s column.

It is known that every time some nutbar kills a bunch of people in France, Trump’s odds go up. He’s the change candidate, and Clinton’s most definitely the status quo candidate. A lot of Americans seem unhappy with the status quo.

I don’t want to see a Trump presidency, but I’m amazed at how many people, also not wanting it, construct stories of its impossibility for themselves.

#95 ROTFL on 07.15.16 at 6:34 am

#32 Mark — “The Canadian stock market is at a P/E of around 15, hasn’t seen any index return since 2007, has a dividend yield that nicely trounces even 30-year GoC debt by a significant margin, and is chock full of firms closer to their cyclical bottoms, than their cyclical tops. What’s there not to like about it?”

My worry is that if housing craps out, the little people will liquidate their meagre retirement funds to pay down their mortgages. That would develop slowly, though.

#96 Lee on 07.15.16 at 7:02 am

#7 Jihnny D,

Blackrock and the like don’t hold your money. They give it to the stock seller or bond seller of the products they buy. They just hold a right to call on the money. If they go belly up your etfs are liquidated and the money returned to you. There would be some admin costs passed onto you but this would be negligible. You literally have nothing to worry about. The banks going belly up is another thing. But of course some people think that’ll never happen.

You are a mortgage default lawyer. If the banks fail, you’ll be living under a bridge and eating bugs. Hey… — Garth

#97 Nelley on 07.15.16 at 7:16 am

The most amusing thing about Trump and his critics is the belief/insistence that this guy is an idiot/incompetent/blah blah blah. Trump is easily the most accomplished candidate and likely has about 50 more IQ points than his average critic.

#98 Bottoms_Up on 07.15.16 at 8:00 am

#90 The Awakened One on 07.15.16 at 3:10 am
———————————-
I think I’ve just been “Ken”-rolled.

#99 Mr. Frugal on 07.15.16 at 8:11 am

Here’s a great Country and Western tune for Trump supporters and all of the other patriots of western civilization.

https://youtu.be/3BFVoHYCyk0

Would you like us to crowdsource for your meds? — Garth

#100 Mr. Frugal on 07.15.16 at 8:15 am

Another great Country and Western song for all of the true patriots.

https://youtu.be/bTWZy4ETCZs

#101 Mr. Frugal on 07.15.16 at 8:31 am

Say what you want about Trump but it’s time for the US to elect a president that will put America first.

https://youtu.be/UodJB1tRNVE

#102 Mr. Frugal on 07.15.16 at 8:37 am

This one is politically uncorrect.

https://youtu.be/XZu0nExoN9s

#103 Herb on 07.15.16 at 8:40 am

As fine a socialist speech as I have ever heard, and not a peep of protest. Must have struck right wingers dumb!

http://www.telegraph.co.uk/news/2016/07/13/watch-theresa-mays-first-speech-as-britains-new-prime-minister-i/

#104 Cristian on 07.15.16 at 8:57 am

“There are hundreds of low-cost products now available in Canada, and my own balanced portfolio holds 18.”

Way too many.

Size matters, dude. — Garth

#105 Sacramento Northern on 07.15.16 at 8:57 am

‘Just as some people (Trump supporters mostly) think there are only two kinds of music (country and western…’

Interesting assertion, Garth. Any proof?

#106 Westcoast Woman on 07.15.16 at 9:03 am

#83 Turn of the Tide…For example, what is your favorite dividend ETF? to kick it off

I’m holding vab, xre, xiu, vfv, cpd, xsh, xsp, xre, xef.
—————————————————————–

I’m holding XBB, XIN, XIU, XPF, VAB, VCN, VXC, VFV, VUN. I’ve had them for approximately a year, and watching them to learn how this all works. For example, I recently put them all on the DRIP plan, or whatever it’s called, where the dividends are reinvested to buy more shares (or payout as cash if not enough earned that month to buy a share).

At first it was just loose change being earned each month by these various ETFs, but soon it turned into dollars and just last month was my first new share bought with the dividends! It was just one single share, but it was gratifying to see it works.

And for RE, our second condo in Victoria was put on the market last week. It will be gratifying to free up cash, assuming it sells, to load up TSFAs and so on. I’ve been listening and learning from this blog!

F48BC

#107 Brian on 07.15.16 at 9:08 am

How are your NON-MAPLE holdings taxed?

Are there Non-maple holdings that are more (or less) tax advantaged?

Taxation is important. How do non-Maple (American and not) get taxed?

Those bought in C$ are taxed as normal. Preferentially. — Garth

#108 cramar on 07.15.16 at 9:13 am

#31 Chris Dawson on 07.14.16 at 7:58 pm

“This was only possible by us being debt free since we were 30 years old.”

———-

Congratulations on you financial acumen. The above summary sentence is the key to the whole thing!

A lesson that younger generations today don’t want to learn. You can be pickled in debt and think you are well off, or live within your means, shun debt, and retire with no financial worries. The choice is there today just as it was 50 years ago!

#109 Keith in Calgary on 07.15.16 at 9:19 am

I’m travelling on business to Indiana on Sunday for a week, and then going to Wisconsin the week after.

My informal seat of the pants…………”I’m a Canuck so I can’t vote in your election, but I am curious who you support” poll is at about 75% for Trump and 25% for Clinton. I’ve probably asked this of 200 or so Americans I’ve met and worked with in 6 different states in the last 2 months.

Remember, the MSM, or “presstitutes” as they should be known are in tbe back pocket of the left wing camp of Hillary Clinton. Everything they say is a bald faced lie and manipulation for the masses. Their polls are also nothing more than manufactured propaganda attempting to sway the undecided.

Back to real estate.

Has a great laugh last night at the CRA security leak about 70 +/- auditors going to investigate transactions in YVR.

That should make a dent…..LOL !!

#110 Saint Herb on 07.15.16 at 9:23 am

Not all Mutual Funds are bad. I made a small portfolio of these TD E-Series funds that behave a lot like ETF’s. The MER’s are 0.3 to 0.5%.

Got lucky and made it the day after the Brexit and am UP over 4% since.

Since I’m young I didn’t do the 60/40, I did 75/25. Basically 25% in each.

The “-e” is the important part at the end that makes them special E-series with the low MER’s. You have to do everything yourself, the [email protected] doesn’t know anything about them if you ask. She can only sell you the regular high fee funds.
TD CDN Index-e
TD US Index-e
TD Int’l Index Currency Neutral-e
TD CDN Bond Index-e

Anyone have any experience with the funds and comment on my setup, balance or %breakdown.

Interested to here from the pro’s…

#111 Nelley on 07.15.16 at 9:34 am

#93ROTFL-over the last 40 years France has basically had the same “leaders” we have right now (Boy Trudeau and Wynne)-look at the results-today Wynne says that the increase in violent crime in TO over the last 40 years is all due to “systemic racism”-JEEZ.

#112 ROTFL on 07.15.16 at 9:42 am

#97 Keith in Calgary — “Remember, the MSM, or “presstitutes” as they should be known are in tbe back pocket of the left wing camp of Hillary Clinton.”

What remains of the media is overwhelmingly concentrated in NYC, LA and DC. When they ask their acquaintances who they’ll vote for, it probably skews 75% Clinton.

P.S. You don’t cover yourself in glory calling Clinton a left winger. Not when her opponents’ (on the left and the right) most effective attacks are that she’s in the pocket of big business. The last time the US ran budget surpluses, her husband was President.

#113 Mr. Frugal on 07.15.16 at 9:45 am

#99 Mr. Frugal on 07.15.16 at 8:11 am
Here’s a great Country and Western tune for Trump supporters and all of the other patriots of western civilization.

https://youtu.be/3BFVoHYCyk0

Would you like us to crowdsource for your meds? — Garth

————————————————————————

I’m gathering you’re not a Marty Robbins fan. Too bad. A good guy and a really good tune.

#114 Ole Doberman on 07.15.16 at 9:53 am

“With unregulated, speculative global capital flowing into Metro Vancouver, we are seeing housing prices completely disconnected from local incomes.”

http://www.bnn.ca/canada-revenue-agency-launches-vancouver-housing-probe-1.527099

What a way to start my Friday morning – who much longer will our crooked politician keep the musical chairs going!

Why is the premier ‘crooked’? What illegality has she partaken in, anonymous accuser? — Garth

#115 Nelley on 07.15.16 at 9:59 am

#112-Crooked Hillary has the support of 95% of the billionaire class-who also support the giant welfare/warfare state (because they don’t pay for any of it).

OK, kids, let’s try to move beyond the slogans. — Garth

#116 Snoop doggie dog on 07.15.16 at 9:59 am

Re:#43
What I mean to say is I would put my down payment cash (roughly 30% of my net) into the tfsa and apply the HBP to the house. Seems like a good way to shift the savings over to the tfsa and enjoy tax free gains as opposed to tax deferred. This would nearly max my tfsa, so future savings would pay the HBP loan and remaining would pad the tfsa/rrsp.

On that note – is there any rule to employer matched contributions being used toward HBP payments?

#117 Patbod on 07.15.16 at 10:04 am

Garth,

I have 5 ETF in my porfolio and I wonder if I have enough diversification.
You should do a post on “How many ETF should we have in our portfolio” in regard to the value of the portfolio.

#118 Grey Dog on 07.15.16 at 10:11 am

Salvation…the opposite to housing bubble crazed addicts.
Back in 09 hubby of 57 lost his career due to economic downturn, loved his career and not ready to retire. Until then we only dealt once a year with [email protected] with RRSPs, so time to consider retirement, but our RRSP fund was certainly not enough to keep us living the life we had become accustomed to…Luckily he soon found employment that matched his skills. In the meantime, we waved goodbye to the banks and said hello to financial advisor.
What a difference that made to our financial life. Decided to live frugally within our means, thus investing a sizeable portion of hubby’s new income.
Today, retirement is months away, and what miracles the financial adviser has done with our savings.
This blog has kept me away from LOCs, which I am ashamed to say WAS a way of life for us and continues to be a source of income for special projects for all our friends.
As a result of Reading this financial blog, I sold some propertyI had in Caledon, invested the proceeds, had I held onto it til we retired I know I would NOT have had the same gains as the money we currently have compounding.
Thanks to honest financial advisers…your retirement nest egg will continue to compound!!! And you will be happy for the rest of your life cause it was comprised of hard EARNED money…not waiting for handouts from parents.

#119 Gonkman on 07.15.16 at 10:12 am

Somewhat true with a small portfolio. Certainly not as the assets grow larger. — Garth

————————————————————-

I am not a 1%er yet Garth.. What do you consider a “Large” enough Portfolio to move from Basic ETFs?

IE: At what amount would a 1% Fee Advisor be seriously interested in Managing your portfolio?

#120 Freedom First on 07.15.16 at 10:19 am

#30 Young woman on 07.14.16 at 7:58 pm

@ freedom first #5

Not because we want to see your wrinkly old butt that’s for sure.

FF007

You are so right young woman. How desperate would a woman have to be to date a guy 30 or 40 years older than her?

#121 jess on 07.15.16 at 10:20 am

regarding etf’s maybe your readers will find this interesting

What is liquidity 1940’s act -discrepancies/deficiencies
https://www.sec.gov/comments/s7-16-15/s71615-60.pdf

#122 Alberta Ed on 07.15.16 at 10:30 am

Began planning for retirement about 40 years ago, knowing that government was not likely to take care of us. Along the way we found an excellent financial advisor who guided our investments and helped us plan for the future. Yes, there are fees, but they are reasonable and he saved us a bundle by assisting with tax planning, balance and diversification. We sleep well at night.

#123 ROTFL on 07.15.16 at 10:33 am

Boy, somebody’s got low standards.

Nobody pays ten or twenty thousand dollars for rubber chicken and cocktails with the premiers of BC or Ontario because of their magnetic personalities. Access, legislation and contracts are being bought and sold, even if there isn’t a specific promise or paper trail. Fundamentally, this is corrupt.

Here’s some other people I’m willing to declare corrupt, even absent a conviction from a competent court of law:
Anybody who receives $300,000 cash in a paper bag while Prime Minister. Anybody from a decent country with the rule of law who feels it necessary to open up an offshore account in Panama or another privacy haven.

That is all.

(a) We are all allowed by law to support political parties, and should. In fact the tax system encourages it. (b) Mulroney was not prime minister when he was paid to do corporate work. There was no bag involved. (c) Having money outside of your country is definitely not illegal. — Garth

#124 jess on 07.15.16 at 10:37 am

two cages rat theory

…”Duterte won the May 9 elections in a landslide after campaigning largely on a platform to eradicate crime within six months by unleashing security forces with shoot-to-kill orders.He vowed on one occasion during the campaign that 100 000 people would die, and so many bodies would be dumped in Manila Bay that the fish there would grow fat from feeding on them.”

These sons of whores are destroying our children. I warn you, don’t go into that, even if you’re a policeman, because I will really kill you,” the 71-year-old said.”If you know of any addicts, go ahead and kill them yourself as getting their parents to do it would be too painful.”
https://asiancorrespondent.com/2016/07/philippines-duterte-drug-addicts/?utm_content=bufferafb83&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

=====
Donald Trump: “Saddam Hussein was a bad guy, right? … But you know what he did well? He killed terrorists. He did that so good,” Trump said. “They didn’t read `em the rights, they didn’t talk. They were a terrorist, it was over.”

#125 mishuko on 07.15.16 at 10:51 am

the first thing everyone should learn is no risk no reward.

you want your 20% gains, know that there is also a chance it can drop 20%.

this is why houses have returned amazingly and can potentially blow up in your face.

#126 HOTBANANA on 07.15.16 at 11:06 am

Hey Garth,

Regarding etf preferreds, what do you think of:

http://www.theglobeandmail.com/globe-investor/investor-education/why-you-cant-trust-the-yields-on-preferred-etfs/article26231003/

With the yields falling, even the value of the etf will fall, no? Is this still a solid choice?

The article is almost a year old. The author has been proved incorrect. — Garth

#127 YVRpeasant on 07.15.16 at 11:31 am

Re: #114

Why is the premier ‘crooked’? What illegality has she partaken in, anonymous accuser? — Garth

Well, she does do “fundraisers” for her party where attendees pay $10K each to be able talk to her.

She also gets paid an annual stipend out of the same fund.

I know it’s not technically illegal in BC, but come on. No one should be able to buy access to a current leader.

That was naive. I’m still waiting for proof she is ‘crooked.’ — Garth

#128 Raised my eyebrows on 07.15.16 at 11:32 am

reading your sentence:

“The people who will emerge whole from the economic and financial reset ahead are those who understand balance.” – Garth

Let’s talk about the reset and how to best time and survive the outcome financially.

#129 Balmuto on 07.15.16 at 11:39 am

#94 ROTFL on 07.15.16 at 6:30 am
“Garth, Don’t get your fixation with Trump.”

You’re watching a man face down his nightmare in real time. It’s going to get worse as the realization slowly goes from “impossible” to “possible,” then perhaps to likely and even inevitable.

People whose beliefs for Trump being unpossible because of his low numbers with women or hispanics have already seen polls showing that it might be winnable without them. Those who mumble “electoral college” as a catechism may have a ways further to go, but even Nate Silver is now putting Trump on a 34%-37% chance, and that’s with Florida, Ohio and Pennsylvania all in Clinton’s column.

It is known that every time some nutbar kills a bunch of people in France, Trump’s odds go up. He’s the change candidate, and Clinton’s most definitely the status quo candidate. A lot of Americans seem unhappy with the status quo.

I don’t want to see a Trump presidency, but I’m amazed at how many people, also not wanting it, construct stories of its impossibility for themselves.
——————————————————————-
Agreed. Liking Trump and acknowledging that he could win are two different things. If there’s anything we’ve learned about Trump in the past year it’s that you shouldn’t underestimate him.

#130 Ronaldo on 07.15.16 at 11:48 am

#110 Saint Herb on 07.15.16 at 9:23 am

TD E-series is an excellent place to start. Low fees and no cost to trade within the funds.r

#131 Nemesis on 07.15.16 at 11:52 am

“Why is the premier ‘crooked’? What illegality has she partaken in, anonymous accuser?” — ShouldReallyGetOutMoreGT

#FunnyYouShouldAsk,Or… #WelcomeToCalamityChristy’sWildWildWest… #”SomethingWickedThisWayComes”…

[G&M] – Inside the corrupt world of Basi and Virk

“This is a story of deceit, betrayal and corruption played out behind the scenes in the corridors of political power in British Columbia.

It starts with police investigating drug dealers and leads into the murky world of government lobbyists where investigators encounter a cast of characters, including the Baron and the Mexican – who traded not in narcotics, but in classified information.

At the heart of it are two corrupt government officials, a lobbyist willing to bribe, and one of the biggest privatization deals in the history of the province – the sale of BC Rail to Canadian National Railway for $1-billion.”…

http://www.theglobeandmail.com/news/british-columbia/inside-the-corrupt-world-of-basi-and-virk/article567373/

[VanCourier] – Basi-Virk first anniversary renews calls for inquiry: B.C. Liberal government paid $6 million legal bills

…”They come from opposite ends of the political spectrum, but Vancouver commentators Bill Tieleman and Alex Tsakumis agree on one thing: British Columbia needs a public inquiry into the corrupt 2003 sale of B.C. Rail.

Tuesday is the first anniversary of the halt to the bribery trial of ministerial aides Dave Basi and Bob Virk. On Oct. 18, 2010, they copped a surprise guilty plea to breach of trust and fraud, but the B.C. Liberal government paid their $6 million legal bills.

As a radio commentator and newspaper columnist, veteran NDP strategist Tieleman followed the scandal through years of hearings before the brief trial and controversial plea bargain. Conservative blogger Tsakumis has published hundreds of internal government, police and corporate documents about the $1 billion sale of the Crown corporations freight operations to CN Rail.

It’s certainly one of the biggest political scandal cases B.C. has ever seen, Tieleman said. We’ve never seen the Legislature of the province raided by the police before for evidence, we’ve never seen the finance minister of the province under RCMP videotape surveillance in a fancy downtown Vancouver restaurant before.

After they sold it, the way that it was sold and the myriad of questions that have arisen from that sale, you’re left with only one conclusion, said Tsakumis. This government has done it to themselves, they have lost complete moral authority to govern this province.”…

http://www.vancourier.com/news/basi-virk-first-anniversary-renews-calls-for-inquiry-1.374383

[Tyee] – Why Do So Many BC Liberal Operatives End Up in Trouble?: Criminal charges, convictions, and more plague the party. Why the pattern?

…”Why do so many BC Liberal operatives currently face criminal charges?

And why have so many other BC Liberals been convicted, disciplined, forced to resign, fired or otherwise criticized for breaking the law, violating rules or misbehaving?

With a criminal charge being laid last week against former BC Liberal government communications director Brian Bonney, and with two other party operatives already facing trials, those are questions that need to be asked of Premier Christy Clark.”…

http://thetyee.ca/Opinion/2016/05/24/BC-Liberals-In-Trouble/

[ColonialTimes] – B.C. Liberals rehire director who faces criminal charges

…” The B.C. Liberals have rehired Laura Miller as the party’s executive director despite the fact she’s still facing criminal charges in Ontario.

In a move swiftly criticized by the NDP, Liberal president Sharon White announced Thursday that the party’s executive board decided unanimously to reinstate Miller just three months after she stepped aside to deal with the charges…

Premier Christy Clark supported the party’s decision…

…Miller, who served as deputy chief of staff under former Ontario premier Dalton McGuinty, was charged in December with breach of trust and mischief in connection with the deletion of government documents related to two cancelled gas plants.”…

http://www.timescolonist.com/news/local/b-c-liberals-rehire-director-who-faces-criminal-charges-1.2200741

#132 Nobody on 07.15.16 at 12:04 pm

#91 – But with so many young cheap immigrant terrorists it’s so hard for home grown terrorists to compete.
The IRA, official suppliers of terrorism to the UK for over 100years, recently had to go out of business.

#133 Smoking Man on 07.15.16 at 12:29 pm

Wondering if the gun grabers down south will call for a band on truck rentals or purchases.

You guys all remember last month after Miami when I said you can moow down people with vehicles.

UCC

Lockup the crazies is how you fix this madness. But then how do you define crazy.

Let everyone carry a weapon is the only solution.

#134 Danger Dan on 07.15.16 at 12:33 pm

I love these posts, but I say that as someone who doesn’t need to be reminded why RE can be a bad move (no pun) and just enjoys reading positive advice about personal finance

#135 M_S on 07.15.16 at 12:34 pm

18 different ETFs? Isn’t that too many?
Is it becuase you hold different kind of ETFs in different accounts?

aren’t Canadian real return bonds too risky, due to long duration?

#136 Basil Fawlty on 07.15.16 at 12:37 pm

With all the money printing and trillions in negative bonds, how any financial advisor does not recommend some gold, silver, or bitcoin beggars my mind. What folly, in these times of endless printed Fiat wealth confiscation .

Actually my clients have a hard time buying groceries and gas, making mortgage payments, looking after daycare costs and creating a retirement income stream in gold. You guys are speculative extremists, pure & simple. — Garth

#137 Basil Fawlty on 07.15.16 at 12:57 pm

I recommend a 10% allocation to precious metals. Extremist? Wake up Garth and save the propaganda.

That’s 10% too much. Own an ETF containing the TSX60 and you have all the exposure to PMs you require. Anything above that is purely speculative. No responsible advisor would suggest a heavy gold weighting. — Garth

#138 Nemesis on 07.15.16 at 2:12 pm

#FridayMischief,Or… #PluckyComicRelief…

#SomeMenNeverLearn…

[Guardian] – Mick Jagger to become father for the eighth time, at the age of 72: Representatives of Rolling Stones frontman confirm the singer’s girlfriend, Melanie Hamrick, 29, is pregnant

https://www.theguardian.com/music/2016/jul/15/mick-jagger-to-become-father-for-the-eighth-time-at-the-age-of-72

#RevengeOfTheGraphicDesigners…

[NewRepublic] – With its new logo, the Trump/Pence campaign gets off to an appropriately pornographic start.

https://newrepublic.com/minutes/135122/new-logo-trumppence-campaign-gets-off-appropriately-pornographic-start

#139 Nemesis on 07.15.16 at 2:19 pm

#BonusMischief…

[VanSun] – Richmond 3: Why does upscale neighbourhood appear ‘poor’ to tax officials?

…”Richmond Coun. Alexa Loo, an accountant, said the phenomenon of residents reporting surprisingly low incomes to tax officials reflects the “weird economy” developing in Richmond.

Many wealthy trans-national Chinese and other migrants maintain expensive, near-empty homes in Richmond, as well as elsewhere around the world, Loo said. “There’s a lot of $2-million homes,” she said, “and it doesn’t seem the people who might own them have jobs” in Metro Vancouver.”…

http://vancouversun.com/life/richmond-3-why-does-upscale-neighbourhood-appear-poor-to-tax-officials

#140 Freedom First on 07.15.16 at 2:23 pm

#89 Metaxa & #5 Freedom First

Metaxa, true for most men, but of course, not me. Freedom First Forever.
………………………………………………………………..
Freedom First #5. Welcome to the “Freedom First Impersonators” fan club. I enjoy hearing from all of my fans.

#141 Freedom First on 07.15.16 at 2:33 pm

#90 The Awakened One

I like the comment by the woman who said “My ex-husband used to sing that to me all the time…..lol”.

Most women are far smarter than most men. Just look around.

#142 jess on 07.15.16 at 3:13 pm

contract for deed sales buy a house “as is” on the installment plan/

AG Koster warns Missouri consumers about use of Contracts for Deed – common devices for scammers
May 19, 2016, 14:27 PM

Jefferson City, Mo. – The Attorney General’s office is seeing an increased use of what are called contracts for deeds to convey ownership of real estate.

Unfortunately, contracts for deeds contain few of the legal protections afforded to buyers that more conventional instruments such as deeds, mortgages and deeds of trust provide to the buyer.

Unlike deeds secured by deeds of trust, contracts for deeds often are not recorded with the County Recorder of Deeds office, so potential conflicting claims for ownership may arise.
A contract for deed does not immediately convey title to the real property. The title to the real property is conveyed at a later date only after a buyer has fulfilled all the conditions in the contract.
Contracts for deeds often have exorbitant interest rates and are not eligible for so-called mortgage insurance, which can protect lenders and borrowers from deficiencies in the event of default.
Such instruments also do not contain a “right of redemption” whereby borrowers can have months to address or correct payment deficiencies

https://www.ago.mo.gov/home/ag-koster-warns-missouri-consumers-about-use-of-contracts-for-deed-common-devices-for-scammers

Law Center Calls Seller-Financed Home Sales ‘Toxic Transactions’

By ALEXANDRA STEVENSON and MATTHEW GOLDSTEINJULY 14, 2016

http://www.nytimes.com/2016/07/14/business/dealbook/law-center-calls-seller-financed-home-sales-toxic-transactions.html?ref=dealbook&_r=1&mtrref=www.lexissecuritiesmosaic.com

#143 Tony on 07.15.16 at 3:16 pm

I’m waiting until the very end of this September to short Teck Corporation and buy back the shares at 5 dollars Canadian somewhere at the end of January or start of February 2017.

#144 dr talc on 07.15.16 at 3:29 pm

7% down is chump change,
people with no net worth are buying houses.
even if they go from zero net worth to negative…who cares? they can live in it
diversification is for those with money

#145 Obvious on 07.15.16 at 3:41 pm

PIMCO’s Devlin: ‘Dangerous’ to call a top in Vancouver housing
“I thought twenty years ago London prices were lofty and probably unsustainable: how incorrect was that?” said PI…

http://www.bnn.ca/1.527374.1468610331

Obvious to everyone but you !!!….why ?

#146 Freedom First on 07.15.16 at 3:42 pm

#65 Apocalypse2016 on 07.14.16 at 9:56 pm

France is having a heart attack tonight.

America will have its own starting in 4 days with the Republican Convention.

How many wll die in Cleveland, in that open-carry state?

Massive drought is taking hold in the east.

Air Canada has just cancelled all future flights to Rio – Brazil is in too much economic chaos. The Olympics will be a disaster.

It is spreading so fast now, all over the world. Europe and Britain are about to implode.

The Summer of Hell is here.

FF007

I hear you. Mom won’t let me open the window at night even though it’s so hot out! The summer of hell indeed.

#147 S.Bby on 07.15.16 at 3:47 pm

#143 Tony
I recently sold out my position in TCK.B for a massive profit. I recommended here early this year to buy in at ~ $4.00 and some dude mocked me because he wasn’t “dumb” enough to take stock advice from an internet blog. Just goes to show to keep an open mind and perform due diligence. Oh well, who’s laughing now?

#148 Crowdedelevatorfartz on 07.15.16 at 4:30 pm

DELETED

#149 Brazil ex-pat on 07.15.16 at 4:39 pm

And Trump just got even more votes……

https://www.rt.com/news/351343-turkey-coup-military-attempt/

#150 Brazil ex-pat on 07.15.16 at 4:40 pm

#18 crowdedelevatorfartz on 07.14.16 at 7:26 pm
@#147 Brazil ExPat
“By the time she hits 35 it’s pretty much game over for a whole slew of reasons…..”
********************************************

Classy( and this coming from a man who embraces his Flatulence….)

Have you shared your observations with your wife?

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

My wife is the exception to the rule. She is tall, fit and skinny…….and “buy-curious”. What happened to Buy Curious anyway?

#151 Johnny D on 07.15.16 at 4:57 pm

@ #40 Andrew Woburn

Thanks for the insight. Interesting stuff.

#152 Smoking Man on 07.15.16 at 5:15 pm

NWO sent another blow.

Military takes over. Bet accordingly.

#153 Smoking Man on 07.15.16 at 5:16 pm

Shit forget to mention country. Turkey is under a Coup

#154 Barb on 07.15.16 at 5:37 pm

The City of Kelowna owns 2 empty Ellis Street lots bought in 2012 for $1.7 million. (kelownacapnews.com Jly 13/16).

Now listed for sale at $2.35 million, a 38% increase.
That is, if they get the purchase price.
Oooops….subtract four years of property taxes.

The BoC inflation calculator indicated the properties would be $1,793,284 in 2016, a 31% increase.

Hindsight’s always 20/20, but if I had had $1.7 mill four years ago, I sure wouldn’t have put it into RE. Anywhere.

#155 KAC on 07.15.16 at 6:13 pm

Re:
“#5 Freedom First on 07.14.16 at 6:32 pm

It’s great that the blog’s message isn’t about male chauvinism again. Why do men date women 30 or 40 years younger than them anyway?”

Tony Curtis had the best answer. When a reporter asked the 70+ year-old actor if he didn’t think his hot, 25 year-old girlfriend wasn’t too young for him he responded:

“What? Do you really expect me to hang out with some broad who looks old enough to be my wife???”

Of course, today that response would probably be considered politically incorrect. Whatever happened to humour?

#156 Ken Lovegrove on 07.16.16 at 7:37 am

Very interesting article on potential trade models that UK could adopt after Brexit and comparisons with different countries around the world

http://s.telegraph.co.uk/graphics/projects/brexit-means-brexit/index.html