What we fear

Investing is hard. It’s scary. Buying a house, in contrast, is easy. It’s mainstream. No wonder 70% of people (and almost 80% of Boomers) have real estate, while less than 10% of own stocks and only 7% have maxed their TFSAs. It’s also no coincidence the savings rate has dropped and debt has exploded at the same time house prices have romped.

So, obviously, the biggest danger most families face is from a real estate correction. And yet all people seem to worry about is the Dow or S&P being too high. Weird. (But that’ll soon change.)

Because this blog is about balance in life (real estate + investments, equities + fixed income, kids + canines, spouse + Harley, head + heart) maybe we should address the reasons most people don’t have financial assets, or suck at managing them. Over the years hundreds of couples have sat across my desk baring their souls, their stress and their goals. I’ve heard it all. Too many of us end up concentrating net worth in a single asset. No balance. Big risk. We forget you can always lease a roof. You cannot rent retirement income. Big regrets may lie ahead.

So why do people get all squishy when it comes to building a portfolio or seeking help, even when their heads tell them to? Three deep-seated fears keep emerging. Close the door. I think it’s time we talked about them.

Trust. The big one. An inability to trust others lies at the heart of indecision and financial paralysis. It’s not just trusting a financial guy – many spouses don’t actually trust each other. Not when it comes to bank accounts or investments (as opposed to sex or children). The relationship many people have with money is very unhealthy, something which needs secrecy, hoarding and protection. That usually leads them to stick it into brain-dead, growthless GICs, make decisions bringing more tax, or fall into do-it-yourself investing based on some pathetic blog.

Sometimes it’s wise not to trust, of course. Giving your money to a commission-based mutual fund guy who will shackle you with deferred sales charges and a 2.5% fee is not a great idea. Ditto for some badass broker who flips weed stocks and promises a 30% annual return. But finding someone to provide experience and balance is better than leaving it in the hands of a rank amateur (that would be you).

Fees. Also scary. This is why 95% of financial advisors in Canada bury the cost of their services inside products they provide to people, so it looks like they work for free. The banks do that, which is why they make so damn much money. Clever. But this is not the best thing for investors, as people who do some research know.

You can give your money to a robo-advisor and have an algo invest at a cost of about a half of one percent. But don’t expect tax advice, marital counseling or puppy stories. A fee-based advisor (about 5% of the industry) on the other hand provides financial counseling, tax advice, portfolio management and help with retirement or offspring living in the basement. That should cost 1% per year of the amount you invest, with no trading charges or any other fees, and come entirely out of growth. On non-registered accounts the fee is tax-deductible. On RRSPs (or RRIFs etc.) it exits the account but isn’t counted as income – so the government pays a big chunk for you. If you’re making 7% or so a year consistently, seems reasonable.

Markets. “Everything is high, in a bubble,” is a common excuse not to invest. Not a great one, though. Two reasons: first, it ain’t true. US stocks may be lofty these days (because of robust corporate profits, tax cuts, Trump) but lots of other asset classes are not (preferred share or bond prices, for example, plus REITs and commodities). A diversified portfolio holds many different things. More important, if global growth’s back on track after eight years of slacking off, why not participate? There is absolutely no reason to believe it’s about to end.

Second, a balanced portfolio isn’t tied to the American stock market. A properly-constructed portfolio might have about 12% exposure to large-cap US companies (the kind that make up the S&P 500), with 88% being in other stuff (various assets, different countries). Moreover, ‘balance’ means you own growth assets (60%) as well as safe ones (40%) so if stocks suddenly decline, the other stuff usually rises – protecting your butt, and saving face with your spouse.

So, investing is not gambling. It’s not ‘playing the market’. Properly done, it poses less risk than borrowing $800,000 to buy one asset on one street in one city in an environment of rising rates and shifting regs. Moreover, we all need liquidity. We need income, cash flow for our entire lives. Concentrating wealth in a building inevitably needing to be sold puts you at risk of having to do so when conditions are poor. Financial assets can be sold as you need the money, and are always 100% cashable. No 5% commission. No property tax, condo fees or Audi-driving realtor.

Balance. That’s the key. Have a house, but also strive to invest in other things. Find love. Get a dog. All good.

182 comments ↓

#1 James on 11.05.17 at 12:14 pm

First

#2 Lost...but not leased on 11.05.17 at 12:15 pm

Phyrrzt on daylight savings

#3 Jimmy on 11.05.17 at 12:18 pm

Early first!

#4 Gravy Train on 11.05.17 at 12:38 pm

#2 Lost…but not leased on 11.05.17 at 12:15 pm
“Phyrrzt on daylight savings”

We’re back on standard time, genius! :)

#5 jess on 11.05.17 at 12:44 pm

cleaning house

Laws will be applied firmly on everyone who touched public money and didn’t protect it or embezzled it, or abused their power and influence. This will be applied on those big and small, and we will fear no one.”

The new body was given broad powers to investigate cases, issue arrest warrants and travel restrictions and freeze assets.

http://gulfnews.com/news/gulf/saudi-arabia/saudis-shocked-thrilled-by-anti-graft-drive-1.2119064

in 2015 this prince said:
http://gulfnews.com/business/sectors/investment/why-saudi-billionaire-pledges-entire-wealth-to-charity-1.1544254

#6 The Lost Art of Saving on 11.05.17 at 12:44 pm

I think part of the reason why people don’t save is, there’s no incentive to save.
2 reasons:
1st, when I was a kid, my parents would put money we received as gifts etc into safe GICs that actually paid great interest. Bottom line, it was safe and the return was guaranteed. Not a lot of people like risking their savings and as you say, most don’t trust other people with their money.

2nd, saving $100 here and there adds up to a few thousand dollars every year. Great if you’re aiming to buy a house that’s $3-400,000. But when houses cost $1.5 million in yvr, saving $100 here and there is getting you nowhere – so many people don’t bother and just live their lives paycheck to paycheck.

Thanks to your advice I’ve learned to do some ‘safer’ investing and lucked out with some cheap US stocks after the crash, but I do miss those 8-10% GICs.

That’s my 2cents. Now when are you opening an office in the west coast? :)?

A third of clients live in YVR & the Lower Mainland, (where it snows). – Garth

#7 Erick on 11.05.17 at 12:49 pm

12% exposure to large-cap US companies seems well below your usual advice for US stocks exposure

Is exposure to US mid or small caps included in the 88% left ?

Thanks

#8 Lost...but not leased on 11.05.17 at 12:49 pm

Re: stats 70% of population owns Real Estate, 10% own stocks etc.etc.

IMHO, the adjective “Real” in Real Estate is imprinted into the psyche of the average person, it is tangible and in Canada it serves a primal need for shelter with the added bonus of an investment vehicle.Yes the market can swing, crash, and burn, but depending on the exposure, Real Estate will exist after the dust settles, which goes to explain why 70% of the public chooses RE, right or wrong.

Stocks, on the other hand,aren’t as tangible, somewhat surreal,and it appears only 10 % of the public at minimum trusts them, let alone understands them.

The public psyche gets imprinted with the past Stock Market crashes, and disillusioned long term when Enrons, Madoffs. Bre-X, Nortels, Dot.Com bombs , even large banks and investment firms in 2008 etc. implode. They wonder what happened, where was the oversight and regulation..other than some rogue whistleblowers exposing these Ponzi schemes.

Seems like every 10 years we have a major market crash, which means we are about due…

#9 Lost...but not leased on 11.05.17 at 12:50 pm

#4 Gravy Train

I’m talking about next year

#10 crowdedelevatorfartz on 11.05.17 at 12:50 pm

Trust is key.
Who do you trust?
Thats a tough one.
I had a pretty good advisor and when he retired his “book” went to his son……I should have walked then.
I squandered almost a decade of investment advice with a mutual fund hawking, P.O.S. , hidden high fee “advisor” that was more interested in hearing himself talk, shuffling my portfolio to generate commissions, collecting a fee for a dwindling portfolio… than listening to my questions as to what the hell was going on….

Finally dumped the high fee, non performing A-hole.
And when I did.
Gee whiz he actually called ME instead of me chasing him to return calls.
And after 2 weeks of his harrassing phone messages….
I took great pleasure in ripping him a new one and telling him why.
“Dont ever contact me again or I’ll file a complaint with the regulatory authorities”
Click.
Last I heard his business partner and a lot of his clients have left……

I now have a balance and diversified, low fee portfolio that is chugging along nicely…..retirement will be a financial breeze…….

P.S.
If you’re not happy with your advisor……dont wait like I did….move on.

#11 jess on 11.05.17 at 12:55 pm

U.S. Lawsuit Links $2.2 Billion Deal to Malaysian 1MDB Scandal
Goldman advised on deal to purchase Houston firm Coastal Energy, which Justice Department suit alleges was financed with money stolen from 1MDB

Why Did Saudi Royalty Wire Millions Into The Malaysian PM’s Personal Account?

“Today’s announcement is the result of untangling a global labyrinth of multi-layered financial transactions allegedly used to divert billions of dollars from the people of Malaysia and fund the co-conspirators’ lavish lifestyles,” said Deputy Chief Fort. “The IRS is proud to partner with other law enforcement agencies and share its world-renowned financial investigative expertise in this complex financial investigation. It’s important for the world to see, that when people use the American financial system for corruption, the IRS will take notice.”

As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.

The complaints filed today allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of 2012 bonds. As the complaints allege, 1MDB had borrowed a total of $1.225 billion from a syndicate of banks to fund the buy-back of the options. The complaints allege that approximately $850 million was instead diverted to several offshore shell entities. From there, the complaints allege, the funds stolen in 2014, in addition to money stolen in prior years, were used, among other things, to purchase a 300 foot luxury yacht valued at over $260 million, certain movie rights, high-end properties, tens of millions of dollars of jewelry, and artwork. A portion of the diverted loan proceeds were also allegedly used in an elaborate, Ponzi-like scheme to create the false appearance that an earlier 1MDB investment had been profitable. (doj)

#12 crowdedelevatorfartz on 11.05.17 at 1:01 pm

@#6 The Art
“Now when are you opening an office in the west coast? :)?”
+++++

In this day and age…….
He’s only a phonecall and an email away.
Documents can be couriered.

#13 Stone on 11.05.17 at 1:22 pm

Well written post. The message transcends time as it’s relevant today, 10 years ago, and will still be relevant in 10 years time from now. Thank you. I really enjoyed it.

#14 stage1dave on 11.05.17 at 1:26 pm

“Balance. That’s the key. Have a house, but also strive to invest in other things. Find love. Get a dog. All good.”

Or a cat…and a few muscle cars…graded 54 Topps hockey…btw, I scored a couple vintage Queensryche tour shirts last month for NTN…my major weakness lately seems to be uncut OPC sheets; TG I gave up on the 8 tracks.

Classic Walt Disney VHS tapes appear to be the newest pump n dump; check this out: https://www.ebay.ca/itm/Cinderella-VHS-410-Walt-Disney-The-Classics-Black-Diamond-Rare/302128522720?hash=item46584365e0:g:EmQAAOSwcLxYHALz

Strangely, I can still buy these at Value Village for $1.99…guess they haven’t caught on yet!

#15 not too late on 11.05.17 at 1:39 pm

for people that feel it is too late to get in RE or TSX….

You have approximately one week left to ever buy bitcoin below cad$10k.
Pass on it now, and you will either not buy it ever, or pay more than that.

#16 Felix on 11.05.17 at 1:44 pm

No need to be so fearful of cats, Garth.

True, if you humans cross us, we will destroy you with our bare claws and think nothing of it.

But we are the smartest creatures, the most rewarding you’ll ever associate with.

Humans have been domesticating dogs for about 12,000 years.

But cats have been domesticating humans for about 9,500 years.

Guess who’s in charge……

#17 jess on 11.05.17 at 1:48 pm

AI bots
Horizons ETFs Launches Canada’s First ETF Driven by A.I.
Canada Newswire , 8:00 AM EDT November 01, 2017
https://web.tmxmoney.com/quote.php?qm_symbol=MIND
The Global X Robotics & Artificial Intelligence ETF (BOTZ)

https://www.cnbc.com/2017/06/16/ai-assault-on-stock-market-ibms-watson-is-getting-into-etf-business.html

#18 LivinLarge on 11.05.17 at 2:19 pm

“The banks do that, which is why they make so damn much money.” Dayum right Fearless Leader. That’s all they do. They don’t produce ANYTHING but money, money and more money. Not a single tangible product…just services, services and services for whch they extract either a fee or earn interest.

The big 5 Canadian banks, once called Schedule 1 banks are effectively NGOs now and a license to print money.

From retail banking charges, lending interest, discount brokerage fees and wealth management/estate management fees, these quasi NGOs just churn out profits.

Starting with the 1980s Bank Act changes, our banks have been successively allowed into what were traditionally non Canadian bank enterprises and they have quickly gone from non player to dominant player in those incredibly lucrative money spinning service industries. All the while the banks have had the total protection from foreign ownership guaranteed by the Feds. Now there’s an NGO dream scenario.

I vividly recall the day in the early ’80s I think, that the Royal declared their first quarter of $250m gross revenue i.e. the first Canadian bank with a $1b projected year.

#19 Victor V on 11.05.17 at 2:25 pm

Liberal fundraisers held family millions in offshore trust, leaked documents reveal: A massive new leak of offshore financial records contains more than 5,000 documents that reveal how two generations of Liberal fundraisers amassed $60 million (U.S.) in a tax haven beyond the reach of tax collectors.

https://www.thestar.com/news/paradise-papers/2017/11/05/trudeau-bronfman-kolber-offshore-trust-taxes.html

#20 TurnerNation on 11.05.17 at 2:30 pm

World class? (get ready for Carbon Taxes govt theft along with a 20% in prepared food prices due to Ont. Minimum wage hike. And Loblaws just hiked costs to its suppliers).

Main point, from this weekend’s IBD print edition: sunny California has USA’s highest rents at $1900:

https://www.earnest.com/blog/how-much-does-it-cost-to-rent-in-your-city-or-state/

Guess where else does…TORONTO…typical downtown nearly new condo @ $2000. Many others like it.

https://www.realtor.ca/Residential/Single-Family/18747727/201–560-KING-ST-W-Toronto-Ontario-M5V1M3-Waterfront-Communities-C1

#21 TurnerNation on 11.05.17 at 2:31 pm

Errm…best to have Blog dog meetups downtown:

“Const. Craig Brister said officers were called to Southside Johnny’s Bar and Grill on Lake Shore Boulevard West near Browns Line, at 2:52 a.m. on Saturday, Nov. 4.”

https://www.insidetoronto.com/news-story/7772969-man-in-40s-assaulted-during-south-etobicoke-bar-fight-toronto-police/

#22 Lost...but not leased on 11.05.17 at 2:35 pm

TO: For those about to flop:

Like others have commented, I’d also like to thank you for your efforts in providing the RE info. The information clearly shows current RE trends.

Personal experience:
A family member acquired, via manipulation, a “COMMITTEESHIP” over another family member previously diagnosed with dementia. I only became aware of “Committeeship” recently..and it is one of the most corrupt and insidious legal manouevers in existence.

I was aware of (i)Power of Attorney, and (ii)Enduring Power of Attorney which trumps Power of Attorney..these basically deal with the affected persons financial affairs. Such power is usually granted by the affected party while they are still in control of their faculties.aka pre -dementia etc.

However, with Committeeship , (pronounced CALM- IT -TAY-ship) one person has 100 % control of the affected person life..ie finances, medical care..literally everything.

*****I will expand on Committeship later…it is very important that people become aware of it.*****

Currently, the person with Committeeship power has had their son and his girlfriend living in the affected person’s house rent free for 3 years.(BTW..the house was built in 2000, in a nice South Surrey neigbourhood)
Estimated lost rent…$100,000.

Should also mention the Public Guardian and Trustee(PGT)..****WARNING****likely the most useless amongst a long list of useless gov’t agencies. They have been investigated and sanctioned by the Ombudsman.In this case, the put a covenant on the property to freeze any sale.

However, in July, the house went on the market(PGT was silent on why they lifted the covenant)…and IMHO,the asking price (around $1.5 million)was high for the market. 3 months into the listing, they lowered the asking price by…drumm roll…..$10,000.Now its been on the market for 4 months.

Now..the realtor…
I found it useful to check their website out..ESPECIALLY their “SOLD”s . This guy hasn’t sold anything since May, 2017, and is other listings are piling up.
In addition, he is extremely hard to get a hold of, as he has an assistant handle all his inquiries.

Like “For Those About To Flop” data shows…if it ain’t selling..often periodic haircuts in the $100,000 range are required.

SMALL WORLD : A realtor we know had dealings with this clown. She also felt he was incompetent. He was a listing agent for a condo….she represented the buyer. His seller wasn’t co-operative about the final details, but her client ended up moving in regardless as was her legal right.

My concern is this agent is playing some dirty tricks. One old realtor trick is to have a number of listings, with a spectrum of prices. Some will be priced high for the market, and others lower..in an attempt to persuade potential buyers that “oh..pssstttt THIS one’s asking price is too high…..but THIS ones are much better deals…sign here.

Our (excellent) realtor provided us with sales data of approx 10 comparable SFH in the area. IMHO, the house is overpriced by at least $150,000 in a declining market. South Surrey area tends to attract retirees who have cashed out elsewhere.

QUESTION: Would a complaint to the Real Estate board be adviseable?

PS Thanks again” For Those About To Flop”

#23 Lost...but not leased on 11.05.17 at 3:28 pm

Re: “Committeeship”

“Power of Attorney”, “Enduring Power of Attorney” and “Committeeship” can be assigned by a person prior to them no longer capable of dealing with their affairs whether it be for physical and/ or mental issues.

In the case I cited. the person had assigned Power of Attorney(POA) to (2) parties after consulting a Notary Public

HOWEVER..one was named as an “alternate” POA which somewhat confused the matter.

HOWEVER again…an “Enduring Power of Attorney” document assigned to another party years earlier was found. This supercedes “Power Of Attorney”.

HOWEVER…The party given POA and exercising a number of moves on the affected person(ie free rent for their son in the home for 3 years) had accessed a lawyer, which by all indications was referred to by their T*RoNT* – D*MINION FINANCIAL ADVISOR…aka the hallmarks of a rats nest was unfolding..as the advisor was now choosing sides and the alternate POA kept out of the loop.

The (i)alternate POA and (ii) the ENDURING POA compared notes and got their own lawyer. The advise was the POA document was so poorly drafted and inconsistent that alternate POA had equal power as other POA.
However…even more interesting is that, under the law…the Enduring Power of Attorney not only superceded the POA…for them to be removed required formal notification, which never happened.

What happened next was this cabal of the other POA, the lawyer and the Financial advisor must have pursued out of desperation “COMMITTEESHIP”. The lawyer actually had the party suffering from dementia( and requiring a walker) brought to his 2nd floor office with NO ELEVATOR. Duly note that the Lawyer could have visited the care home the dementia patient was residing in.

The lawyer then began to convince the dementia patient to remove the other party from POA. NOTE: YOU MAY WONDER HOW THIS IS POSSIBLE AKA TO HAVE SOMEONE WITH DEMENTIA MAKE SUCH A DECISION..BUT THEY CAN…
THE LAW ALLOWS FOR A LAWYER TO MADE SUCH A DIAGNOSIS OF COMPETENCE WITH A DEMENTIA PATIENT..WHICH IS TOTAL BS AND CLEARLY SUBJECT TO ABUSE.

This cabal then pursued the all empowering “COMMITTEESHIP”..which entails getting a hearing in front of a judge, (2) MDs to re certify the affected person…and a lot of other documents..cost is about $8000-$10,000….so that the other party can take charge.

Now they have 100% control of the person. ******Advise people to SERIOUSLY READ THE LEGISLATION****

. Our own Notary commented on this and stated COMMITTEESHIP was introduced several years ago…it was a mess, and took years to pass through Gov’t before the existing legislation established.

Why didn’t we challenge it?? that’s a whole other story, but suffice it to say it is a major legal cesspool to wade through.

Again….for the sake of you and your loved ones..review this dirty sleazy “COMMITTEESHIP”..it is prime for abuse as I have outlined above.

#24 MSM-Free Zone on 11.05.17 at 3:31 pm

Unbelievable.

Just when you think you strategically voted to end the last (Con) government’s record of double standards and hypocrisy, the new (Lib) party you voted in to replace them takes their own hypocrisy to a new low.

You’re finished, T2.

http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511

#25 Prophecy on 11.05.17 at 3:32 pm

Don’t worry: Liberals are going to increase yearly immigration to 450,000 by 2021, but they’re not increasing real estate, roads, jobs, infrastructure to support those immigrants to integrate into Canada.
I predict that rents in Toronto will skyrocket to $2,000-$3,000 a month for a 1-bedroom in North York by 2025 because Toronto’s population will also skyrocket by 1.5 million to 4.4 million because of Trudeau’s immigration policy.

It’s an Agenda 21 to force everyone to live in the city to work for pennies while paying $1,800 a month to rent a bedroom in Toronto.

Certifiably false. — Garth

#26 Stan Brooks on 11.05.17 at 3:32 pm

More offshore troubles for T2 and his financial backers.

https://www.icij.org/article/justin-trudeaus-chief-fundraiser-linked-offshore-tax-maneuvers/

The defenders of the middle class. Sleeplessly working for you. Wild B. was so busy working for Canadians and definitely not pushing his taxation agenda as to benefit his company and his wallet that forgot to declare his french private company that manages his villa. That is dedication folks!

And when people raise questions about their integrity, they strike back accusing everyone else except themselves. The privileged by definition.

Assisted by the media whores at taxpayer expenses.

#27 bounce on 11.05.17 at 3:35 pm

“…that should cost 1% per year of the amount you invest, with no trading charges or any other fees, and come entirely out of growth.”

Garth, that last phrase. Are you saying that if there is no growth, there is no fee?

Do you really want a manager paid only from growth who is then incentivized to take more risk with your money? Not me. — Garth

#28 Stan Brooks on 11.05.17 at 3:42 pm

Guess what is the chance of BM and T2 coming after the 3176 Canadian individuals/potential tax evaders implicated in the latest Paradise Files/Caiman island scandal.

Exactly zero.

If the things become too smelly they will settle for 2 % of the taxes owned.
Do you believe they will investigate and prosecute themselves and their friends?

They are busy working for us, the Canadians and the true enemy – the small corporations and the doctors.
Who T2 said only form corporations in order to become tax evaders.
T2 actually said that.

#29 Stan Brooks on 11.05.17 at 3:56 pm

Bahama Billy tries to go after Canadian mom and pop shops.

While we are served with carbon tax, T2 organic socks bills and extra money for CRA to prosecute the damn wealthy doctors.
——
The Liberal government provided extra cash to the Canada Revenue Agency in last year’s budget to pursue wealthy tax cheats.”

Globe and Mail – February 2017
——————–

Not a word for the people who qualify for offshore tax heaven services (over 5 mil. in investment assets).
The wealthy. Not us.
In a way T2 and BM are correct, they do not go after the wealthy (themselves) but against the supposedly ‘rich’, including doctors who can’t retire.

#30 FOUR FINGERS WATSON on 11.05.17 at 4:07 pm

Investing is hard. It’s scary. Buying a house, in contrast, is easy. It’s mainstream. No wonder 70% of people (and almost 80% of Boomers) have real estate, while less than 10% of own stocks and only 7% have maxed their TFSAs. It’s also no coincidence the savings rate has dropped and debt has exploded at the same time house prices have romped.
……………………………………..

Of course people don’t save. The returns are PUNY and taxed, often twice. Market crashes that “no one saw coming”, income trust betrayals, who the f*ck needs that ? Borrowers are encouraged by governments and rewarded with huge untaxed housing gains. Who’s the dummy ?

#31 Tulips on 11.05.17 at 4:11 pm

For those who don’t own any real estate, should being balanced mean to buy a property somewhere still affordable to rent out?

#32 crowdedelevatorfartz on 11.05.17 at 4:16 pm

@#23 Lost but not Leased

Committeeship.

Wow! That’s a new one on me.
What an expensive “$h!tshow.
Doesn’t surprise me about the Govt agency lack of “oversite”.
Unaccountable Union protected sloths that surf the internet looking for more grievances they can hand to HR for “stress leave”.

As for the legal fees. No surprise there either. Laws created by Lawyers to ensure years of Billable Hours.
Reminds me of when former Lawyer and PM Papa Trudeau brought us our new “Constitution”.
One political wag opined that it would create 100 years of legal precedents.

#33 crowdedelevatorfartz on 11.05.17 at 4:16 pm

@#23 Lost but not Leased

Committeeship.

Wow! That’s a new one on me.
What an expensive “$h!tshow.
Doesn’t surprise me about the Govt agency lack of “oversite”.
Unaccountable Union protected sloths that surf the internet looking for more grievances they can hand to HR for “stress leave”.

As for the legal fees. No surprise there either. Laws created by Lawyers to ensure years of Billable Hours.
Reminds me of when former Lawyer and PM Papa Trudeau brought us our new “Constitution”.
One political wag opined that it would create 100 years of legal precedents.

#34 For those about to flop... on 11.05.17 at 4:23 pm

Recent Sale Report.

Due to unpopular demand I will do a few more while my wife yells at the Seattle Seahawks to run the right way.

This one sold 38 days ago.

4425 Hudson st Vancouver.

Ask 4.77

Sold 4.38

Tax assessment 4.85

I actually have a Pink Pumpkin in this street ,up in the 6m range that can’t afford to knock some off like these guys did to get the deal done…

M43BC

https://www.zolo.ca/vancouver-real-estate/4425-hudson-street

#35 Lost...but not leased on 11.05.17 at 4:30 pm

#24 MSM Free Zone

The Global SHTF has arrived !!!!…long overdue !!!

Seems like this major Truth and Facts Tsunami is hitting this planet at the same time, the dam is bursting .

…Whether it be Weinstein Hollywood issue, “Do as I say not as I do” T2 and Moroneau,etc.etc.

This is what took Mafia CEO John Gotti down…arrogance and hubris combined to deceive they were “untouchable”.

Not sure re: Canadian Trust and Foundations..but in the USA they are actually tax sheltered revenue generators. There is an adage of for every $1 in..$2-3 dollars out .

Rockefeller and crew were notorious for co-opting the US medical schools via the Flexner report..whereby Flexner rigged report was meant to remove as many homeopathic Medical Schools in favour of allopathic ones .

Rockefeller created “foundations” that geared funding to allopathic schools, as a means for him to gear/co-opt medical care towards drugs, which his firms produced.

Canadians were aware of political hypocrisy a long time ago..recall Paul Martin and his shipping company? Greedy Paul lusted for power, made Chretien walk the plank, but Paul imploded.

Globally, like Sammy “the Bull” Gravano ratted out Gotti because he saw the writing on the wall…many others wish to avoid being tagged as “guilty by association” and are now covering their @sses.

#36 Just sayin on 11.05.17 at 4:53 pm

There are good advisors but a boat load who don’t give a …!

A neighbour (and his whole office) just transferred out of their defined benefit pension schemes.

The advisor was the husband of one of the employees who just happened to work for said office.
Their fees 3% initial and 1.5% /yr and same again penalty if they exit within 5 yrs.

My mates pension alone was over $4mil.

My protestations and suggestions fell on deaf ears. I think the “advisor” just bought A Lear jet for xmas.

Just saying. Buyer beware….

#37 Just sayin on 11.05.17 at 5:03 pm

Just to clarify I’m not having a dig Mr Garth, i would say you are the exception and Posting your advice FOC for so many years is worthy of any business you get from
It.

#38 For those about to flop... on 11.05.17 at 5:06 pm

Recent Sale Report.

This one appears to have gone at ask 33 days ago.

4137 12th ave, Vancouver.

Ask and sold 2.98

Tax assessment 3.28

I’ll keep digging…

M43BC

https://www.zolo.ca/vancouver-real-estate/4137-w-12th-avenue

#39 Entrepreneur on 11.05.17 at 5:09 pm

I and my other siblings went though the horrors of “Committeeship” with my bother and sister-in-law who wanted it all (court, and it seems whoever signs first has the upper hand). And committeeship is an easy avenue for that control and push others out. And all legal.

Heard so many other people who should have an equal share of the inheritance but pushed out through committeeship. And how many people have the money to fight this in court, lawyers are too expensive (cost me nearly thirty thousand dollars).

#15 Mark…”discriminate risk…” Working with an immigrant in Victoria and he explained how he was so clever: He would go to the bank to get a loan, made payments (like most of us do) but because he was an excellent client he was given more. And after he was satisfied with the amount allowed he left the country with the money. This was in the seventies and hope the banks have tighten their lending practices.

It seems to me that Pierre Trudeau was in power when the 1981 Bank Act was changed, the wheels are turning. And the “paradise papers” revealing more information of what is really going on.

Thank goodness we have the internet and no wonder the leaders want it shut down as the Truth Will Prevail.

#40 acdel on 11.05.17 at 5:22 pm

#19 Victor V

Many other links on different news sites including the Monarchy; it is absolutely sickening; hey, guess where this new carbon tax that will be implemented will benefit?? This will all collapse soon, giant scheme and people are paying attention, hopefully sooner than later!

T2 is the best, sarcasm, sorry if I hurt your feelings T2, Aga Khan will give you a great big hug!

Good post Garth!

#41 For those about to flop... on 11.05.17 at 5:22 pm

Recent Sale Report.

This one is about as far as I am going to go back as a recent sale at 60 days.
Correct me if I am wrong.

4083 20th ave ,Vancouver.

Originally asking 3.78 then3.63 then 3.39

Sold for 3.19

Tax 3.91

So rough and ready numbers tell us 15% less than ask and 18% less than assessed.

2 months is a little bit stale but still fresher than bc assessments update time 99 out of 100 times…

M43BC

https://www.zolo.ca/vancouver-real-estate/4083-w-20th-avenue

#42 Tony on 11.05.17 at 5:26 pm

Re: #15 not too late on 11.05.17 at 1:39 pm

This guy on youtube says it’s going to crash either this November the 15th or 16th.

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

#43 Capt. Serious on 11.05.17 at 5:29 pm

The comments are funny sometimes. People seem to want to get in their own way and make investing complicated. It doesn’t need to be complicated, especially today with all the convenient ways to get market exposure to segments of interest at low cost.
The solution is simple, keep it simple.

#44 For those about to flop... on 11.05.17 at 5:45 pm

Recent Sale Report.

This one sold 37 days ago.

4456 Chaldecott st. Vancouver.

Originally asking 4.68 then 4.48 then 3.98

Sold for 3.65

Tax assessment 4.22

So 22% less than original ask and 13% less than assessed.

Never even heard of this street before even though I have worked on 20/25 houses nearby in the last 15 years or so…

M43BC

https://www.zolo.ca/vancouver-real-estate/4456-chaldecott-street

#45 crossbordershopper on 11.05.17 at 6:02 pm

simple, stop buying all this crap made in china that you dont need, and you will be surprised how little you really need to live on.
i have met many seniors , who live on 1600 per month that the goverment gives them. they dont travel or go anywhere, dont want to, most have cash stashed away anyway.
balance is about balanced life, not just a portfolio, too many people drink, smoke, like cigs and other stuff, and do drugs, and gamble and womanize etc. etc.
they spend their money on stuff that means nothing, then all the other stuff, cell phones insurance etc. that all goes to nothing,
millions of canadians get by on very very little, and seem to be happy i guess.
people should be taught how to cook, food is relatively cheap in canada, i personally like tuna and sardines, good for you and cheap, spagetti and sauce are excellent for you, potatoes, carrots, onions, etc, bread.
why people buy all this prepackaged stuff i have no idea. not just food, but toys,
being rich if thats your angle is simple, stop buying crap you dont need, then you dont desire it.

#46 akashic record on 11.05.17 at 6:07 pm

Alternative math. A teacher Smoking Man can like.

https://www.youtube.com/watch?v=Zh3Yz3PiXZw

#47 MSM-Free Zone on 11.05.17 at 6:08 pm

#6 The Lost Art of Saving on 11.05.17 at 12:44 pm
“….That’s my 2cents. Now when are you opening an office in the west coast? :)?……”
A third of clients live in YVR & the Lower Mainland, (where it snows). – Garth…”
___________________________

Got a brother-in-law with Raymond James in YVR. You’ll need half a mil for starter cash, though.

http://www.birney.ca/my-ideal-client.aspx

Now I feel so cheap! — Garth

#48 For those about to flop... on 11.05.17 at 6:30 pm

Recent Sale Report.

Couldn’t get a zolo page on this one but this one sold apparently around a month ago.

7133 Maple st,Vancouver.

Asking 4.9

Sold 4.1

Tax assessment 4.52

That’s enough of ones in the fours ,I’m getting nauseous,I’ll try for something lower but whatever I come across will get published because there is pretty much a blackout in B.C

I was told that it stands for Bring Cash ,but maybe it stands for Brokerage Collusion…

M43BC

#49 the Jaguar on 11.05.17 at 6:32 pm

Fate is the hunter. The cat wears a bell to warn birds they might be hunted, but the cougar wears no bell of domesticity. He is working for his dinner, not for sport.

Trust. Fees. Markets. I would submit there might be one other. Some see investments as ‘boring’. Please someone fetch the smelling salts for Garth, Doug and Ryan. Recognize this is pathetic as it’s clear who suffers most from this lack of interest. I do think however that some ‘park’ funds in a safe and convenient place, always intending to ‘do something about it soon’……and then time marches on.
Distracted by sunny skies, nature walks, good reads, interesting conversation, travel. The list is endless. That business about investigating the smart thing to do with those investments resembles a junk drawer that we keep promising to clean up. I am not defending this reckless behaviour. Only acknowledging it. Where does one go to submit to the thirty lashes with Bandit’s leash?
The Jag heard a rumour from someone ‘in the know’, that appraisers are commenting these days on the high number of properties they are called to which are vacant. Suppose this means something in the greater scheme of things….

#50 dr. talc on 11.05.17 at 6:40 pm

all ‘foundations’ advance the ‘world order’, it has it’s own chapter in the book:
https://archive.org/details/EustaceMullinsTheWorldOrderOurSecretRulers2ndEdition1992

#51 Lost...but not leased on 11.05.17 at 6:41 pm

There is a dearth of posters today…

……maybe more evidence to my suspicions that many are relatives of T2/Morneau and/or elite Saudi nationals now in hiding.

#52 dr. talc on 11.05.17 at 6:45 pm

dog’s know the truth, politicians are fire hydrants, it’s in the song:

‘Dog’
https://www.youtube.com/watch?v=s4Ty_8Nw-CY

#53 The Canadian citizenry on 11.05.17 at 6:53 pm

Doesn’t understand investing . Has nothing to do with ‘fear ‘. In their defense they went through our educational system with ZERO information provided. Look at the pathetic use of TFSAs. That tells us all we need to know . Add to that rip off mf trailer fees, disingenuous advisors …a whole industry thats trying to repair itself and well ….they choose the safety of houses , brick and mortar .

Unfortunately , highest household debt in country history . Have you no shame Canada ?

#54 LivinLarge on 11.05.17 at 6:56 pm

“Do you really want a manager paid only from growth who is then incentivized to take more risk with your money? Not me. — Garth”… actually that doesn’t incenitive irresponsible risk takng, it incentivizes “good enough Conservatism. Low risk, lower reward but still a reward non the less. Risky churning runs the loss/no fee inevitability and who wants a lot of work not to get paid.

#55 yorkville renter on 11.05.17 at 6:57 pm

hi Louis

#56 For those about to flop... on 11.05.17 at 6:59 pm

Recent Sale Report.

O.k ,so I went looking for something a little lower and fresher.

This one sold only 6 days ago.

2990 w 12th Ave ,Vancouver.

Ask 2.88

Sold 2.5

Tax assessment 2.74

Numbers are o.k ,Kitsilano fairly desirable neighborhood.

Lots of houses in that area that need a lot of work.

I’m working in nearby Point Grey but the house next door has wooden windows that were not maintained and if I wanted to poke my fingers through the window frame there would be little resistance.

E.T. phone home…

M43BC

https://www.zolo.ca/vancouver-real-estate/2990-w-12th-avenue

#57 Re., 47 on 11.05.17 at 7:08 pm

That RJ advisors ‘ideal client ‘ page is hysterical!!

Be grateful you have clients ya fool

#58 I thinks I know something on 11.05.17 at 7:10 pm

“So, obviously, the biggest danger most families face is from a real estate correction.” – Garth

———————————————————-

How big a danger is that really. All they have to do is hang on a few years and they’ll be OK. History has shown that RE always comes back. With a vengeance. In 10 years time, a GTA SFH will be worth an average of 2 million. At least.

#59 Aroha on 11.05.17 at 7:14 pm

Brought home puppy for the first time ever last night and have regrets. The thing just wont stop whining and crying and barking. I want my freedom back! Lucky I didnt buy that condo I wanted! Still have that freedom!

#60 jess on 11.05.17 at 7:21 pm

Press Releases
New Massive Leak of Secret Documents from Bermudian Offshore Law Firm Reveals Tax Abuses and Corruption by Companies and the Global Elite

November 5, 2017

Leaked documents from Bermuda-based global offshore law firm Appleby—“Paradise Papers”—revealed today by the International Consortium of Investigative Journalists (ICIJ) bring to light again the global shadow financial system for the rich and powerful of the world. GFI Calls on Governments to Collect and Publish Beneficial Ownership Information for Accounts to Limit Future Abuses like those in the Paradise and Panama Papers Leaks.

http://www.gfintegrity.org/press-release/new-massive-leak-secret-documents-bermudian-offshore-law-firm-reveals-tax-abuses-corruption-companies-global-elite/

#61 jess on 11.05.17 at 7:23 pm

and then the trump administration dials back

Trump Administration Further Erodes US Leadership on Combatting Corruption

” United States Withdraws from Global Transparency Initiative

Washington, D.C. – Today the Department of the Interior (DOI) announced its decision to withdraw from the Extractive Industries Transparency Initiative (EITI) as an implementing country. The DOI’s letter to the chair of the EITI board erroneously blames US law for the US’ inability to comply with the disclosure standard. This move comes on the heels of the repeal of a critical anti-corruption safeguard earlier this year and further weakens US leadership in combatting corruption. ”

http://www.pwypusa.org/pwyp-news/trump-administration-further-erodes-us-leadership-on-combatting-corruption/

#62 Eyestrain on 11.05.17 at 7:25 pm

Summary or summery?
Today’s topic examines the dangers of concentrating one’s wealth in an inhabitable asset that appreciates tax-free. The reasons why less than .5% of people employ a fee-based financial advisor are explored. How a reasonable fee of 1% usually equates to only about 1/7 of your gross investment income, and comes with benefits no heartless robot can provide. The apparent guarantee that fees should “come entirely out of growth” is disambiguated in #27. A subtly clever pun on deep-seated fears inhibiting growth. Key takeaways – diversify and buy low, sell high. And love your dog.

Slow news day, or Garth et. al. have decamped to their tax haven. The discussions range from the usual off-topic banter to some serious cra cra. The bulk of the posts reconfirm that 95% of the blog dogs need Garth’s services at any price. One astute but barely legible scrawl (#45) proves that a formal education is not a prerequisite for common sense. I am content doing the Lord’s work, but praying for more than one Amen (thank you, brother) from the congregation.

#63 Meth on 11.05.17 at 7:26 pm

Amphetamines people. Jeez.

#64 Linda on 11.05.17 at 7:29 pm

Now Garth – Everyone ‘knows’ that RE is safe ‘as houses’ & that when the day of retirement dawns you will be able to sell that sucker for mega-bucks, thus living a life of luxury until the day of your demise. Plus there are lottery tickets – apparently that IS a valid retirement strategy for more than a few crazed beavers out there. Besides, doing all that investment stuff or paying someone to do it for you is like, hard work & probably won’t work. As for saving for the rainy day, are you crazy? Why bother, it will just be stolen/taxed by ‘the government’ or ‘the advisor’ & besides, it won’t be enough to live on anyway – honey, did you see that sweet deal? Let’s live while we can…..

There sure are a lot of contenders for the crown of Denial out there. Isn’t there a Nobel Prize for Financial Procrastination? Must be, lots of folks are vying for it:)

#65 Leakyleak on 11.05.17 at 7:34 pm

https://www.theguardian.com/news/2017/nov/05/justin-trudeau-adviser-stephen-bronfman-offshore-paradise-papers

#66 Yanniel on 11.05.17 at 7:35 pm

So Garth, only 5% of the industry is fee-based. From those, how many would take clients with only 100k of net worth? If you charge only 1%, then your annual fee would be a mere 1k on a 100k investment.

I would give you that for all the added services you provide beyond portfolio management, but will you take “poor” guys with only 100k? Honestly, I don’t think it makes sense for you; which leaves “us” as we are: amateur DIY investors.

Bottom line, guys like me won’t be accepted by a fee-based advisor. We will have to grow that 100k into way more. Or am I wrong?

Either way, I thank you for all your teachings.

#67 acdel on 11.05.17 at 7:41 pm

#59 Aroha

Too funny!

#68 jess on 11.05.17 at 7:42 pm

One offshore web leads to Trump’s commerce secretary, private equity tycoon Wilbur Ross, who has a stake in a shipping company that has received more than $68 million in revenue since 2014 from a Russian energy company co-owned by the son-in-law of Russian President Vladimir Putin.

In all, the offshore ties of more than a dozen Trump advisers, Cabinet members and major donors appear in the leaked data.

The new files come from two offshore services firms as well as from 19 corporate registries maintained by governments in jurisdictions that serve as waystations in the global shadow economy.”…

https://www.icij.org/investigations/paradise-papers/paradise-papers-exposes-donald-trump-russia-links-and-piggy-banks-of-the-wealthiest-1-percent/

#69 Evangeline on 11.05.17 at 7:48 pm

#54

A puppy’s not a “thing”.

It’s a living creature that needs attention and love — it needs to be comforted, held, kindly talked to, reassured, petted or fed.

One or all of the above.

#70 Evangeline on 11.05.17 at 7:50 pm

#59 not #54

#71 crowdedelevatorfartz on 11.05.17 at 7:51 pm

@#59 Aroha
“The thing just wont stop whining and crying and barking.”
++++++
What did you name it?

Millie?

#72 Ronaldo on 11.05.17 at 7:52 pm

#6 The lost art of saving

Thanks to your advice I’ve learned to do some ‘safer’ investing and lucked out with some cheap US stocks after the crash, but I do miss those 8-10% GICs.
—————————————————————-
But what was the inflation rate at that time, do you recall? I’ve never owned a GIC but at that time the markets were returning 15% or more I suspect. Check out these charts. https://www.ratehub.ca/blog/the-history-of-gic-rates/

#73 Haha!! on 11.05.17 at 8:02 pm

That Raymond James only takes in $500,000 +? Clearly he wants nothing to do with small accounts , charge me all 1.25% for doing , setting a balanced portfolio . That’s tough work !! :)

recenty a well establish financial advisory firm that restricts clients to healthcare workers (anybody want to guess why ? ) ran a full page ad in monthly healthcare magazine . Accepting only 5 clients the ad went on to say

I know the owner . Have heard him speak – arrogant dude . Call him up , told him the ad was impressive . He thanked me and reminded of the minimal investment required . Not insulted , told him we’re comfortably that level . His tone changed . A few minutes in, asked him about historical returns of his firm (including 2008 )kindly provide in addition to certain metrics .

‘We don’t provide that ‘

Click

#74 Ronaldo on 11.05.17 at 8:04 pm

#10 crowdedelevatorfartz on 11.05.17 at 12:50 pm

Trust is key.
Who do you trust?
Thats a tough one.
I had a pretty good advisor and when he retired his “book” went to his son……I should have walked then.
I squandered almost a decade of investment advice with a mutual fund hawking, P.O.S. , hidden high fee “advisor” that was more interested in hearing himself talk, shuffling my portfolio to generate commissions, collecting a fee for a dwindling portfolio… than listening to my questions as to what the hell was going on….

Finally dumped the high fee, non performing A-hole.
And when I did.
Gee whiz he actually called ME instead of me chasing him to return calls.
And after 2 weeks of his harrassing phone messages….
I took great pleasure in ripping him a new one and telling him why.
“Dont ever contact me again or I’ll file a complaint with the regulatory authorities”
Click.
Last I heard his business partner and a lot of his clients have left……

I now have a balance and diversified, low fee portfolio that is chugging along nicely…..retirement will be a financial breeze…….

P.S.
If you’re not happy with your advisor……dont wait like I did….move on.
—————————————————————-
Indeed, there are a lot of ”Shysters” in this industry as well aren’t there? Live and learn and hopefully don’t get burned too badly in the process. I have similar story as yours. Luckily I spotted the ”Shysterism” early in my investing career.

#75 Ronaldo on 11.05.17 at 8:12 pm

#12 crowdedelevatorfartz on 11.05.17 at 1:01 pm

@#6 The Art
“Now when are you opening an office in the west coast? :)?”
+++++

In this day and age…….
He’s only a phonecall and an email away.
Documents can be couriered.
—————————————————————
Exactly. I sold a cottage up north a year ago and everything was done by email. Offer, acceptance and all necessary paperwork done electronically. Even the investing of the proceeds of sale. Simple.

#76 Herb on 11.05.17 at 8:19 pm

Canada’s 15 minutes of fame: the Queen and Trudeau’s pictures topping the “Paradise Papers” article in to-day’s Süddeutsche Zeitung that broke the news. (The SZ is Germany’s largest daily and distributed all over Europe.)

https://projekte.sueddeutsche.de/paradisepapers/politik/the-new-offshore-leak-e969006/

#77 Trust on 11.05.17 at 8:26 pm

“Someone who thinks the world is always cheating them is right. They are
missing that wonderful feeling of trust in someone or something.” – Eric Hoffer

#78 Ronaldo on 11.05.17 at 8:37 pm

#43 Capt. Serious on 11.05.17 at 5:29 pm

The comments are funny sometimes. People seem to want to get in their own way and make investing complicated. It doesn’t need to be complicated, especially today with all the convenient ways to get market exposure to segments of interest at low cost.
The solution is simple, keep it simple.
———————————————————–
KISS yes. All you really need is 3 good funds managed by the best managers in the industry with low MER’s and sit back and relax. I suspect that newbie’s getting into the ETFs and DIYers are likely having a difficult time making a decent return. Not unlike individual stock investors who are inexperienced, 1 bad ETF pick can knock the socks off a portfolio. This is why you need the help of a professional when investing in these vehicles which number in the thousands. I fear that the next big correction when it comes, etf’s will play a big role because of their liquidity.

#79 Ronaldo on 11.05.17 at 8:42 pm

#44 For those about to flop… on 11.05.17 at 5:45 pm

Wow, that is some whacking on the price. Keep up the good work flop.

#80 MF on 11.05.17 at 8:43 pm

#86 Gravy Train on 11.05.17 at 6:18 am

“You’d have doubled your money if you’d invested any amount in this fund back in 2012! Whatever you do, don’t tell MF, or he’ll soil his pants! (He hates to miss out on things—while missing out on things. It seems to be his shtick.)”

-Yup. I’ll admit it. You speak the truth.

#15 Stone on 11.04.17 at 4:14 pm

Further to that above comment. I have to thank you Stone for the recommendation to read “The four pillars of investing”.

I picked it up. Great read so far. I’m hoping it will allow to invest again with confidence.

Thanks again.

MF

#81 acdel on 11.05.17 at 8:50 pm

#71 crowdedelevatorfartz

Felix!

#82 Ronaldo on 11.05.17 at 8:51 pm

#47 MSM-Free Zone

Got a brother-in-law with Raymond James in YVR. You’ll need half a mil for starter cash, though.

http://www.birney.ca/my-ideal-client.aspx
——————————————————————
I bet he was singing a different tune when he was first starting out in the business. Got to be too successful I reckon. Had a relative who got into the business several years ago dirt poor and gladly took on anyone who had cash to invest. Very successful today and still taking on small accounts.

#83 Smoking Man on 11.05.17 at 8:59 pm

DELETED

#84 paulo on 11.05.17 at 9:00 pm

Just curious: any of the dogs playing the Bitcoin ? if so has anybody been able to convert there position or mark up into a in hand currency ? just curious.
My gut feeling on this play, is that it is a ponzi.

#85 Lost...but not leased on 11.05.17 at 9:03 pm

Raymond James (and affiliates) benchmark is $500,000?

I can perhaps scrounge up $499,999..but perhaps when I pawn my Nobel Prize, Order of Canada, Emmy’s, Oscars, Grammy’s, etc….I will keep fingers crossed I can make that fiscally magic quantum leap benchmark and be part of a truly elite club .

False. There is no Raymond James benchmark. The company is not a bank which controls employee-advisors, but a platform for independent advisors to manage their own practices as they wish, within regulatory guidelines. Anyone with $150,000 or more to invest would likely benefit from having a fee-based advisor. For everyone else, keep reading. — Garth

#86 Doghouse Dweller on 11.05.17 at 9:07 pm

#66 Yanniel

Fancy suits and expensive cars, stock- in- trade for the financial advisor. The pitch goes like this ” Well I`m quite successful and only advise wealthy Laurentian elites , but since I like you, your a nice guy and have a sense of humor. I`ll make an exception and manage your piddily 100k .”

Had a good friend that used to rave about his advisor / MF salesman.
For some undisclosed reason he is now a rank amateur at 65 trying to DIY.

Learn as much as you can for as long as you can, then look for an advisor, by then you probably won`t need one.

#87 For those about to flop... on 11.05.17 at 9:13 pm

Recent Sales Report.

This one sold 6 days ago for ask.

4064 w 16th ave. Vancouver.

Asking 2.08

Sold 2.08

Tax assessment 2.23

Nothing special about this one but still outrageous for the average family.

I saw a couple of luxury condos go for roughly 5 million each downtown last week though, just for comparison…

M43BC

https://www.zolo.ca/vancouver-real-estate/4064-w-16th-avenue

#88 Nic on 11.05.17 at 9:16 pm

The paradise papers…This is what people are angry about. A whole set of rules for the 1%. We keep lowering taxes for companies ( Im not talking small business), so that they will ” hire more people”. Wrong..more profit means moving more money to lower tax regions..essentially avoiding taxes in the country they operate.

I’ve read only the summary of this story, but it clearly stated no illegal activity had taken place. What is this other ‘set of rules’? — Garth

#89 acdel on 11.05.17 at 9:28 pm

Garth, no need to post this if you do not feel that it is adequate; but I sure would like to hear from you whether in a future post based on this subject or from your own personal opinion as to where this is going, thanks.

http://business.financialpost.com/news/worlds-first-ai-run-global-etf-makes-its-own-managers-nervous

#90 MSM-Free Zone on 11.05.17 at 9:30 pm

“…Now I feel so cheap! — Garth….”
_______________________

Maybe. But he’ll never match your standup routine.

Some things money can’t buy.

#91 n1tro on 11.05.17 at 9:30 pm

#84 paulo on 11.05.17 at 9:00 pm
Just curious: any of the dogs playing the Bitcoin ? if so has anybody been able to convert there position or mark up into a in hand currency ? just curious.
My gut feeling on this play, is that it is a ponzi.
+++++++++++++++++++++++++++
Plenty of exchanges to cash out bitcoins. My take on it is that the price is being driven up by the same type of moisters that drove up GTA real estate. Same “prices will only go up for xxx reason(s)”. This doesnt mean one shouldnt get in to cash in on stupid.

#92 For those about to flop... on 11.05.17 at 9:38 pm

Pink Pumpkins being carved in Richmond.

These guys made a token effort and took ten thousand off despite that price proving to be too high for the previous 4 months.

Picked up for 2.5m in March 2016 ,they are still holding out for the best part of a double digit gain but the market is talking and they ain’t listening…

M43BC

9371 GORMOND RD RICHMOND paid 2.5 ass 2.67 asking 2.88

9371 Gormond Road, Richmond

Jul 20:$2,890,000
Nov 3: $2,880,000
Change: – 10000.00 -0%

https://www.rew.ca/properties/R2213836/9371-gormond-road-richmond-bc

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1WFE2TQ==

#93 Dobermanduke on 11.05.17 at 9:46 pm

#58 I thinks I know something on 11.05.17 at 7:10 pm

“So, obviously, the biggest danger most families face is from a real estate correction.” – Garth

———————————————————-

How big a danger is that really. All they have to do is hang on a few years and they’ll be OK. History has shown that RE always comes back. With a vengeance. In 10 years time, a GTA SFH will be worth an average of 2 million. At least.

——————————————————————

So what happens in 4 years when they have to renew and can’t afford the higher rate?

#94 DON on 11.05.17 at 9:46 pm

Well…heard from a good family friend that Nurses in B.C. employed by the Province are being audited by the CRA for their road expenses to visit clients (they have to use their own vehicles – gov doesn’t supply). Nurses providing home visits for palliative care patients. The union is telling them be professional and cooperative – but don’t take shit. The employer…nowhere to be found. Of course the auditors are as professional as they usually are.

These are the people taking care of your family and good friends in their last hours. Inevitable death surrounds their working lives.

Meanwhile, the tax havens, money laundering, our respected leaders, etc.

POOR FORM – FFS!

#95 acdel on 11.05.17 at 9:48 pm

Ha,ha,ha, hey, hey, hey, good-bye Coderre, love Alberta!

#96 Lost...but not leased on 11.05.17 at 10:06 pm

Post #85..

C’mon Garth…
……it was meant to be light- hearted…nothing serious
……based on previous posters satirical comments

Next time speak in emoji. — Garth

#97 Smoking Man on 11.05.17 at 10:07 pm

#83 Smoking Man on 11.05.17 at 8:59 pm
DELETED

Of course deleted Just wanted you to know. Any thoughts on the arrest of all the Saudi arrested backers of T2 and the Clinton’s.

Globalism getting bitch slapped everywhere. Now that T2s primary motivation and funding sources are gone Im sayimg energy east pipe line is no longer dead.

Trump must have said look King this is how we are going to do business now. Art of the deal.

#98 5Inatrailer on 11.05.17 at 10:27 pm

Very great post Garth- Berkshire Hathaway quality post.

Can you give us an approximate guess on the source of your clients wealth? Ive read there are 4 ways to riches;
1.) save it
2.) win it
3.) inherit it
4.) earn it.

Now I suppose most are a combination of two (or here)
But I just can’t see my spouse and I saving and earning ever enough to be FI through a balanced portfolio. Sure, it’s a great vehicle to preserve wealth, but maybe not so much to create it.

Just curious how small business ownership stacks up against the salaried savers.

We are a combination of both salary and SB. We are putting a lot of eggs into this basket, but it’s doing well and we have DB pensions to rely on (hopefully- please don’t hate us).

Got a loud German shepherd. Check
3 kids. Check
Love? Its a work in progress. Wish we could diversify that! Lol.

Again, great post. Worth bookmarking.

#99 Pete on 11.05.17 at 10:32 pm

n1tro on 11.05.17 at 9:30 pm
#84 paulo on 11.05.17 at 9:00 pm
Just curious: any of the dogs playing the Bitcoin ? if so has anybody been able to convert there position or mark up into a in hand currency ? just curious.
My gut feeling on this play, is that it is a ponzi.
+++++++++++++++++++++++++++
Plenty of exchanges to cash out bitcoins. My take on it is that the price is being driven up by the same type of moisters that drove up GTA real estate. Same “prices will only go up for xxx reason(s)”. This doesnt mean one shouldnt get in to cash in on stupid.

_________________________________

Can someone explain what this bitcoin is all about? Computing power , electricity consumption, mining? , solving complex problem? What problems? Reading up on this thing ans I still have no idea what it’s all about..is this a scam or can someone explain how it works?

#100 Entrepreneur on 11.05.17 at 10:45 pm

A ticking clock helps a new puppy and at night a warm, kind-hearted body, #59. And lots of newspaper everywhere on the floor, hehe, in a matter of time all will come together.

#101 FLHTK on 11.05.17 at 10:58 pm

It’s so true people are scared to let others manage their money…..I’m still building up the courage to Call Turner Investments and get the ball rolling for us. Wouldn’t even know where to begin

#102 crowdedelevatorfartz on 11.05.17 at 11:08 pm

@#85 Lost not Leech
“I will keep fingers crossed I can make that fiscally magic quantum leap benchmark and be part of a truly elite club ”
++++++

You think 500k is part of an “elite club”?

Well, the average define govt pension is worth waaay more than that if the typical govt person retires at 55 and lives to their mid 80’s……..
Thats an “elite club”.
Not the hard working pikers that have scrimped and saved to have something after 40+ years of unpensioned work in the private sector IF their money placed in unsecured, ungaranteed investments pan out….

“Elite Club”

yeesh.

Go to Bermuda and wave that Social Justice flag ….. not here.
We pay taxes.

#103 crowdedelevatorfartz on 11.05.17 at 11:13 pm

@#81 acdel

Not Felix. :)

“Millie” was an abbreviation for “Millenial”

#104 acdel on 11.05.17 at 11:17 pm

#97 Smoking Man

You know out all people that this is “FINALLY” breaking all down. As much as some people like to demonize social media and blogs like this that allow us to speak freely there influences are becoming less and less; hopefully the pendulum does not swing too far to the other side and people just find balance.

Most of us want is just a fair shot at life; we have never had it so good but at what cost? Watch the news on a daily bases and I think that I just answered my own question.

We need balance; where a couple can actually raise a family; forget the marble tops, 3000 sq ft houses; people have forgotten what love is; instead, many of us are ATM machines.

Certain cultures still recognize this but not in the present North Americans that were born here. I am an idiot for wishing this, it will never happen but one can hope!
Ok, I am done, thanks Garth for your patience’s this evening, I had a few things to get off my chest!

#105 Jamie Dimon on 11.05.17 at 11:18 pm

Gartho I agree on all points but a solid fee based advisor like your talking about won’t touch you until you are over $100,000 from what I’ve been experiencing. So a guy like me, 2 years out of school, managed to land a 6 figure salary and am saving like crazy but I feel I’m on my own until I get above the threshold. So I’ve been reading investing books, researching and doing my best at trying to learn to fend for myself. Is this what you have been used to seeing in your experience? Maybe some other blog dogs could lend me there approach as to when they were just breaking into the investment world? I hope I’m not sounding too whiny here, I’m just interested if this is a normal right of passage. Much appreciated, love the blog Garth .

#106 crowdedelevatorfartz on 11.05.17 at 11:20 pm

@#98 5inaTrailer

Saved it.
It’s not easy.
It takes time.
Priorities.( do you NEED a new car? Annual Disneyland trip? )
Brown bag lunch not McD’s every day.
Set achievable goals( $5k per year RRSP? $ 10K?)
Dont touch the retirement fund. Its for retirement.
Go out for dinner/drinks once a month. You earned a night off.
Buy food/clothes whatever on sale.
Keep at it for 5 years. Then another 5 years
You’ll be surprised.
The 1st $100k took forever.
The next was faster.
Then it gets faster.
You can do it.

#107 Fake News Again on 11.05.17 at 11:28 pm

Yup….agree with SM….the LEFT is destroying itself everyday. All Trump needs to do is sit back and watch.

#108 bring_in_on on 11.05.17 at 11:28 pm

Actually Garth has hit the nail on the head here with this article for us. Both my wife and I grew up dirt poor, and worked tirelessly to have more opportunities and a better future. We are both U. Profs dedicated to our students, have done really well in our profession, and love our careers. It was a risk going down this route, as you only get to see around the age of 40 whether you are in a stable work situation; if not they kick you out. For many years the salary is rather low, and if you don’t make it, you’d have lost many years on one track (juust like in other professions where the job goes extinct). Where Garth’s article resonated with me is with people having the lack of trust of people who deal with money for a living (banks, advisors, financial gurus of all sorts). Have little experience with that lot, always had a strong dislike of conversations dealing with money and people bragging about their inheritances and family trust funds, and had a strong distrust of the corporate world that I have never shaken from my youth (through all sorts of *&(&( jobs that members of my family had to eat crow with). So who do you trust with investing your hard-earned cash (if you are not one of the “elites” like T2 and Morneau who can talk to their Dad’s advisors etc..)? For us, I think the best way is to try to learn investing yourself, and we have been studying this on our own and have really benefited from the advice that Garth has provided on how to balance the portfolio. So far we are doing pretty well following Garth’s general advice (for the amount that is extra and outside of the work DC pension). Have resisted the urge to upgrade to a larger house, as the risk is way too much. Although I don’t agree with Garth’s politics (or the politics of many contributors to this blog), and we are Bernie fans in this house, I am thankful for Garth’s honesty and useful stuff he puts out. I think he would be someone I would trust.

#109 crowdedelevatorfartz on 11.05.17 at 11:38 pm

@#88 Nic
“The paradise papers…This is what people are angry about. A whole set of rules for the 1%. ”
+++++

This kills me LOL.

Every ONE of you social justice warriors would hire the best accountants and tax lawyers money could buy if you were rich enough to have millions placed in off shore tax free havens.

Oh the “unfairness” of it all.

Why do they get tax breaks and not me?
Because they have money and can afford it.
The 1% aint like the rest of us THATS fer sure and while I dont like it…..I certainly understand human nature to keep “what’s mine” out of grasping govt pockets since most govts urinate the tax dollars on wasteful shite.

Social justice sounds an awful lot like jealousy to me.
If they were breaking any tax laws….they’ll pay.
If not….well, the govt has just wasted a $h!tload of money because , lets face it, high priced tax lawyers specializing in offshore money havens can usually dance circles around civil service govt tax monkeys.

But that being said , it is rather amusing watching the Trudeaus and the Morneaus of the world squirm when they are asking us to “do as they say not as they do”.
I wonder if Trudeau will pay for his family to visit the Agha Khan this Christmas or the Tax Payers

#110 FOUR FINGERS WATSON on 11.06.17 at 12:11 am

#105 Jamie Dimon on 11.05.17 at 11:18 pm
Gartho I agree on all points but a solid fee based advisor like your talking about won’t touch you until you are over $100,000 from what I’ve been experiencing. So a guy like me, 2 years out of school, managed to land a 6 figure salary and am saving like crazy but I feel I’m on my own until I get above the threshold. So I’ve been reading investing books, researching and doing my best at trying to learn to fend for myself. Is this what you have been used to seeing in your experience? Maybe some other blog dogs could lend me there approach as to when they were just breaking into the investment world? I hope I’m not sounding too whiny here, I’m just interested if this is a normal right of passage. Much appreciated, love the blog Garth .
…………………………
Buy the Big Six Canadian banks that pay 4%+ dividend. Reinvest the dividend in same. The dividend plus the 2% yearly that the TSX will deliver will give you 6% + per year.The banks will do well in a rising interest rate environment and you will sleep well at night. Buy and fuggeddaboutit.

#111 Financial Samurai on 11.06.17 at 12:41 am

The fear of investing in stocks is simply due to real time price quotes and a LACK of utility from your investment.

#112 Nonplused on 11.06.17 at 1:21 am

This comment is more to Doug’s advice not to chase high return funds based on past performance yesterday. Nicholas Taleb described the folly of this quite well in his book “Fooled by Randomness”, and I am sure many others have as well but this is where I first read about it. My version (so, simplified):

Let’s say you have 10 pennies, which you are going to flip until the particular penny comes out tails, in which case you take it out and have nine, and again until you have eight, etc. Using a probability that each penny comes up heads or tails 50% you would expect all of the pennies to be out in 2 flips. But they won’t be, because the odds of the next flip coming up heads or tails is not dependent on the previous flip or even the accumulation of all previous flips. Even if you had a penny that came up heads 10 times in a row, the odds of that penny coming up heads again is still 50%. It doesn’t become “due” to come up heads again, and thus indicate you have a special penny.

This is a hard thing for gamblers to grasp, as they keep playing a certain VLT because it’s “due” (this time usually because it hasn’t paid out recently). Sure it’ll pay out something eventually, but not with any more odds than the first time you played it. Playing it longer only increases the money you have spent minus the odd jackpot that pays 30% of what he machine takes in on average. This is because each play is totally random and not dependent on previous plays. But try and tell a gambler that.

I once did convince a friend that he couldn’t “beat the machine”, but I had to get him to keep a log book to do it. The problem is the machines are designed to make a big deal out of a jackpot while bleeding the money slowly and this really screws with human psychology. But this is a topic for another day.

So how does an actively managed fund beat the market 5 years in a row? Well, there are a lot of funds and some will beat the market and some will not. The funds that do not beat the market disappear just like our “tails pennies”, and the funds that beat the market get played again only now with more money under management. But they remain subject to the 50/50 flip, and the fact that they beat the market 5 or how many years in a row does not mean they will beat it again. Garth includes it in “recency bias” (or I think he does) and that is also a good name for it but I find Taleb’s explanation more definitive.

George Soros, on the other hand, has a much longer period of beating markets than most traders, but he also explained how he did it using his theory of “reflexivity”. “Find the trend that cannot last and bet against it.” But he had enough leverage to force an end to a trend, most people cannot do that.

So, that is in a nutshell what 2 of the smartest traders ever say about stock picking or judging funds based on past performance. It doesn’t work better than a balanced portfolio for most people over the long term. You have to be very specialized and have access to research and funding that most people don’t have to play that game.

This is why you see so many option sellers, bookies, and Casinos make so much money. They know the odds and give themselves a “spread”. Sometimes you win, sometimes you lose, but they always win because the masses on the whole beat wrong.

Of course I am doing a great disservice to the writings of both authors by greatly simplifying their theories and ideas and probably getting them mostly wrong. But I would say to some extent they were both doing the same thing, waiting for people to assume “heads” was a forgone conclusion and over-valuing that assumption, and then betting tails. Many hedge funds have been brought down the same way, once someone with some money realized they were making the wrong bet based on over-extrapolating past results that they in part had probably cause by over-investing in the position.

So anyway, if you want to know why with mathematical and logical certainty why you and pretty much any fund out there can’t beat the market read “Fooled by Randomness”. That and “The Black Swan” are required reading for any trader, both by Taleb. I didn’t find Soros’ book as helpful, but it came out much earlier and for it’s time was good.

#113 Damifino on 11.06.17 at 1:22 am

#98 5Inatrailer

1. Saved quite a lot over many years.
2. Exercised company share options before tech bust.
3. Sold overvalued real estate 7 years ago & rented.
4. Avoided debt and lived within my means.
5. Invested as per G.T.

#114 Fake News Again on 11.06.17 at 1:42 am

#108 bring_in_on on 11.05.17 at 11:28 pm
Actually Garth has hit the nail on the head here with this article for us. Both my wife and I grew up dirt poor, and worked tirelessly to have more opportunities and a better future. We are both U. Profs dedicated to our students, have done really well in our profession, and love our careers. It was a risk going down this route, as you only get to see

blah blah blah……why do overpaid, benefited gold plated pension Govt Workers ALWAYS have to come to this blog and BRAG about how well they have done by winning the Govt Lottery and never “actually working” a day in their life?

Univ Profs are some of the dumist peeple I have ever met. They regurgitate old outdated garbage forever. Could it be because……they have never had a “real job”. Barf. The smart ones get jobs in the private sector and become very successful. The dum ones…..become profs.

#115 Fortune500 on 11.06.17 at 1:45 am

Excellent post Garth. I really enjoyed this one.

#116 Nonplused on 11.06.17 at 1:46 am

Oh and I suppose to know fully how what I was explaining above you have to understand how option sellers and bookies and Casinos price “the odds”. People do not pay the same for the same risk, the bookies exploit people’s tendency to overpay for what looks like a sure thing.

I don’t want to make this too long, but if a horse has in reality a 10-1 chance of winning a race, you can buy 8 or whatever balances the bookies odds, whereas if there is a horse that has bad odds, say 1 in 10, the bookie will sell it at 1 to 11 to get people to take that side. Whichever horse wins he makes 1 dollar if he can keep people betting on both sides. Of course he can’t do this over just one horse, but over lots of horses he can.

But in the case of the 10 flip penny, what people tend to do is go “all in”. This penny has come up heads 10 times in a row, so they will buy 1 to 2 against (or some number) on this magic penny, when the bookie knows damn well it’s coming up tails eventually. In horse racing it’s more pronounced, because people bet more and more on horses with a winning track record so a horse that should say have 5-1 odds is paying 2-1 odds because so many people become sure it will win. They “crowd the trade”.

So just remember folks, if you are at the Casino or the horse track and they’ve been in business for a while, do it for fun and stay within your means. It’s a net zero sum, and the bookie or the VLT or the Casino will make money, so everyone else who gambled when taken as a whole will lose. Only lose a “fun” amount. Don’t bet the farm.

Oh and Lotteries. Same thing. They always win, no matter how much they pay out. They know the odds much better than you do. In fact, the higher the jackpot, the more they win. Chances some of the jackpot is carried over because it wasn’t won this time, but now that the new jackpot is larger they sell more tickets. They still can’t lose even when they get to the point where the payout is greater than 1, because much of the jackpot is jackpots that weren’t won before and now everyone and their dog is buying tickets.

Statistics are fun but nobody understands them.

#117 morrey on 11.06.17 at 2:26 am

dear: For those about to flop Your posts are meaningless. We are not privy to the selling price in all of your links. ie. we are supposed to believe your reporting. But if you keep insisting on posting do try to make them in readable English and parseable.

#118 house_broken on 11.06.17 at 3:15 am

#99 Pete on 11.05.17 at 10:32 pm

Can someone explain what this bitcoin is all about? Computing power , electricity consumption, mining? , solving complex problem? What problems? Reading up on this thing ans I still have no idea what it’s all about..is this a scam or can someone explain how it works?

I have bitcoin (btc) and its fork (bch). They are blockchains. Users hold a “wallet”, a coded address for receiving and a private key for sending. They use funny QR squares so cameras can pickup the code, but all you really need is the long string of numbers and letters. A transaction occurs when someone sends an amount from one wallet to another. The funds, or bitcoins, are not considered sent until the transaction is confirmed. A transaction is confirmed when it is included in the blockchain–the ever growing ledger of confirmed transactions. All the pending unconfirmed transactions go into a memory pool where they are gathered into blocks of about 2000 transactions by “miners”. An ever increasingly difficult random code must be generated to tie the transactions together and form a block. Not every attempt is successful. If they form a new block that complies with the blockchaine, miners are rewarded with new bitcoins, plus they get to keep the transaction fees. Transaction fees are voluntary on the part of the sender. You can choose to entice a miner quicker with a higher fee, or pay none and wait until your transaction gets picked out of the memory pool. Think of miners like tellers at a bank selecting to serve whoever is paying the highest fees, and if they do 2000 transactions, the teller is also rewarded money.
That’s how new bitcoins come into circulation. There are about 16.7 million now of 21 million available. They can be fractioned to approx .00001.

The cool thing about bitcoin, the value is already in the coin, someone “mined” it or paid for it, unlike an instrument of debt, like a cheque, or a credit card. So once the transaction is confirmed, the money is spent. Because of this, people want to make very sure of transactions, as there is no recourse. As an exchange of value, this is an incredibly secure system and each transaction becomes part of the permanent record of the blockchain and confirmed thousands of times.

To spend it, you must scan your private key (sweep wallet) into an online wallet and send funds to another wallet’s public address, or trade for other currencies through an exchange. As you will store the private key with the online wallet, you will be asked to write down a passphrase and password to verify you own the wallet.

Blockchain is beginning to change how we can securely transfer and track value. There is momentum gowing as this is a paradigm shift. What you are buying with bitcoin is the value invested into it by all others involved. Currently growing by 10 to 20 billion $ per week. I will suggest this is very early in blockchain development and I will continue to make small weekly purchases, with exchange and transaction fees covered by continued growth. I do believe a better blockchain system is inevitable, and bitcoin will one day be considered a clunky relic. Bitcoin is not the currency for buying a coffee. It is for moving sums of value from one digital address to another securely. And, though the transaction record is public, who owns the private wallet key is a mystery. You can own as many wallets as you want.

I started by going to a bitcoin ATM at a coffee shop. It printed me a paper wallet, I loaded some money onto it and paid 5% as an exchange rate. Then I “swept” the private key onto my online coinomi wallet. Then I bought some bitcoin cash (bch) through one of the connected exchanges. I’m also following some other coins and occaisionally hop over to ride their value up. I started with $20 and that grew to about $500. I printed a new paper wallet offline and transferred the funds to it. This I keep secure and made two copies. A bitcoin address website can walk you through making a paper wallet. The blockchain site verifies confirmed wallets. The btc site can displays the memory pool size and the best transaction fee to offer (I pay .0008 and wait 1 hour…about $1.60).

I believe bitcoin won’t begin to depreciate until all the coins are mined or if something better comes along. Currently, the electrical costs are too high for any mainstream bitcoin use. But if they design a parrallel blockchain (a fork) that is more efficient and gains popularity, I will jump to that. Just use small funds to start and learn how to transact and use a “wallet”.

Nods and wags to the host for entertaining such banter.

#119 Dolce Vita on 11.06.17 at 3:49 am

“…What is this other ‘set of rules’? — Garth”

Oh Garth, how quickly you forget.

“Bronfman tax case back in federal court…When the family transferred $2 billion out of the country, the government waived the exit tax worth $700 million”:

http://www.cbc.ca/news/canada/bronfman-tax-case-back-in-federal-court-1.298637

What I wonder is how all that came to be?

Jean Chrétien the PM then.

#120 Where's The Money Guido? on 11.06.17 at 3:50 am

Re: #88 Nic on 11.05.17 at 9:16 pm
The paradise papers…This is what people are angry about. A whole set of rules for the 1%. We keep lowering taxes for companies ( Im not talking small business), so that they will ” hire more people”. Wrong..more profit means moving more money to lower tax regions..essentially avoiding taxes in the country they operate.

I’ve read only the summary of this story, but it clearly stated no illegal activity had taken place. What is this other ‘set of rules’? — Garth

Read on Garth. CBC took the info on the Bronfman’s to a US tax guy and he said (in his own words) that it stinks.
And CBC produced a letter that a Quebec University tax prof said was the smoking gun of Bronfman’s dad supplying the money for the Cayman scam. It was in their own words, attributes it back to Canada…..But…it all depends on the CRA.
So, Trudong will fire a whole bunch more CRA investigators like your buddy Harper did when the Panama papers came out and that $2 billion they allotted to CRA will end up in the Bahamas.
It’s all laid out in black and white and if the CRA does nada then we know for sure it’s all planned for the demise of civil liberties and financial enslavement.

#121 Dolce Vita on 11.06.17 at 3:54 am

Hey Flop, good posts as usual.

Me being in Il Bel Paese, of ever dropping RE prices :-( and you being in La La Land, it would be interesting if you could get the drop on these new Condo development Assignment scams going on such as: buy price, sell price, how many times flipped, final buyer price, etc.

I know, you would be doing the CRAs job for them, but it would be interesting press here. Reads like you have some good sources in YVR, just a thought…not a request.

Keep posting and thanks.

#122 Howard on 11.06.17 at 5:49 am

Ha! I just saw that Denis Coderre lost reelection in Montreal!

Karma served up after his gloating at Alberta’s difficulties.

Oops….is casual belief in karma now illegal in Canada, as per Her Excellency Payette?

http://www.cbc.ca/news/canada/montreal/quebec-montreal-denis-coderre-valerie-plante-1.4388700?cmp=rss

#123 Honey Dripper on 11.06.17 at 6:29 am

I consider my DB pension like a perpetual bond. Do I really need to invest in bonds in my RRSP for those of us lucky enough to have one?

Bonds make up a small portion of a balanced portfolio (less than 20%, of which government debt is a subset) and play a useful role in dampening portfolio volatility. So included them, in the correct proportion. Don’t be too smarmy about your DB pension as you can always lose your job, lose your way or see it mismanaged in future. — Garth

#124 Dharma Bum on 11.06.17 at 6:48 am

The masses are ignorant.
For one thing, that’s why religions thrive.
But I digress.
People are generally stupid.
If they can’t touch it, feel it, see it, smell it, taste it, live in it, they don’t understand it.
They have no patience to plant seeds today, and reap the rewards later.
Delayed gratification is lost on most people. Everybody wants stuff – and they want it NOW. Borrow, borrow, borrow. Spend, spend, spend.
Saving and investing? Hah!…why, that’s just a scam.
A confederacy of dunces.

“When superior people hear guidance, they carry it out diligently and ably. When mediocre people hear guidance, it seems vague and uncertain. When lesser people hear guidance, they laugh.”
― Lao Tzu

#125 Howard on 11.06.17 at 7:06 am

#59 Aroha on 11.05.17 at 7:14 pm
Brought home puppy for the first time ever last night and have regrets. The thing just wont stop whining and crying and barking. I want my freedom back! Lucky I didnt buy that condo I wanted! Still have that freedom!

—————————————–

Clearly you have no idea what dog ownership entails. Did you do any research? Apparently not enough to know that dogs bark?

For the good of the puppy, please give him to a no-kill shelter where they’ll find a real home for him.

Honestly prospective dog owners should be forced to undergo a

#126 Howard on 11.06.17 at 7:07 am

oops, last line should be….

Honestly, prospective dog owners should be forced to undergo an IQ test before he/she is allowed to care for a canine.

#127 Dobermanduke on 11.06.17 at 7:21 am

#118 house_broken on 11.06.17 at 3:15 am

#99 Pete on 11.05.17 at 10:32 pm

Can someone explain what this bitcoin is all about? Computing power , electricity consumption, mining? , solving complex problem? What problems? Reading up on this thing ans I still have no idea what it’s all about..is this a scam or can someone explain how it works?

I have bitcoin (btc) and its fork (bch). They are blockchains. Users hold a “wallet”, a coded address for receiving and a private key for sending. They use funny QR squares so cameras can pickup the code, but all you really need is the long string of numbers and letters. A transaction occurs when someone sends an amount from one wallet to another. The funds, or bitcoins, are not considered sent until the transaction is confirmed. A transaction is confirmed when it is included in the blockchain–the ever growing ledger of confirmed transactions. All the pending unconfirmed transactions go into a memory pool where they are gathered into blocks of about 2000 transactions by “miners”. An ever increasingly difficult random code must be generated to tie the transactions together and form a block. Not every attempt is successful. If they form a new block that complies with the blockchaine, miners are rewarded with new bitcoins, plus they get to keep the transaction fees. Transaction fees are voluntary on the part of the sender. You can choose to entice a miner quicker with a higher fee, or pay none and wait until your transaction gets picked out of the memory pool. Think of miners like tellers at a bank selecting to serve whoever is paying the highest fees, and if they do 2000 transactions, the teller is also rewarded money.
That’s how new bitcoins come into circulation. There are about 16.7 million now of 21 million available. They can be fractioned to approx .00001.

The cool thing about bitcoin, the value is already in the coin, someone “mined” it or paid for it, unlike an instrument of debt, like a cheque, or a credit card. So once the transaction is confirmed, the money is spent. Because of this, people want to make very sure of transactions, as there is no recourse. As an exchange of value, this is an incredibly secure system and each transaction becomes part of the permanent record of the blockchain and confirmed thousands of times.

To spend it, you must scan your private key (sweep wallet) into an online wallet and send funds to another wallet’s public address, or trade for other currencies through an exchange. As you will store the private key with the online wallet, you will be asked to write down a passphrase and password to verify you own the wallet.

Blockchain is beginning to change how we can securely transfer and track value. There is momentum gowing as this is a paradigm shift. What you are buying with bitcoin is the value invested into it by all others involved. Currently growing by 10 to 20 billion $ per week. I will suggest this is very early in blockchain development and I will continue to make small weekly purchases, with exchange and transaction fees covered by continued growth. I do believe a better blockchain system is inevitable, and bitcoin will one day be considered a clunky relic. Bitcoin is not the currency for buying a coffee. It is for moving sums of value from one digital address to another securely. And, though the transaction record is public, who owns the private wallet key is a mystery. You can own as many wallets as you want.

I started by going to a bitcoin ATM at a coffee shop. It printed me a paper wallet, I loaded some money onto it and paid 5% as an exchange rate. Then I “swept” the private key onto my online coinomi wallet. Then I bought some bitcoin cash (bch) through one of the connected exchanges. I’m also following some other coins and occaisionally hop over to ride their value up. I started with $20 and that grew to about $500. I printed a new paper wallet offline and transferred the funds to it. This I keep secure and made two copies. A bitcoin address website can walk you through making a paper wallet. The blockchain site verifies confirmed wallets. The btc site can displays the memory pool size and the best transaction fee to offer (I pay .0008 and wait 1 hour…about $1.60).

I believe bitcoin won’t begin to depreciate until all the coins are mined or if something better comes along. Currently, the electrical costs are too high for any mainstream bitcoin use. But if they design a parrallel blockchain (a fork) that is more efficient and gains popularity, I will jump to that. Just use small funds to start and learn how to transact and use a “wallet”.

Nods and wags to the host for entertaining such banter.

——————————————————————-

Ahh, much clearer now

#128 jess on 11.06.17 at 7:32 am

“Assisted by the media whores at taxpayer expenses.”

Mr. Brooks: Regarding this concluding statement— wouldn’t the word “media ” need to be replaced with more precise words like lawyers or lobbyists
======================
law firm helped wage ‘Kill Bill’ campaign to block offshore tax legislation

“…too complicated and unfair. “The common man thinks that tax advisers, tax lawyers and tax accountants spend their days looking for loopholes. Nothing could be further from the truth,” he said.

http://www.cbc.ca/news/business/paradise-papers-offshore-bronfman-lobbying-1.4384912

#129 house_broken on 11.06.17 at 7:39 am

#99 Pete on 11.05.17 at 10:32 pm

I wanted to add couple points on bitcoin if the host will allow, re criminality. The main choice of criminals has been $ cash money. They can use offshore arrangements, digital accounts, and in a variety of currencies. They stash value in any number of things. Blockchain security is why criminals use it, blockchain can’t be counterfeited, and whoever holds the private key is unknown. When mainstream adopts blockchain, whether it is bitcoin or a more efficient one, criminals will still be a % of total population anyway. The question is, can separate parties exchange value privately? As long as two agree, they will exchange in whatever is mutually accepted. The blockchain genie is out of the bottle, but it’s only a symbol of value. People are merely awakening to the concept of transacting in alternatives.

If it is a ponzi scheme, the end game, when there are no more new coins, is the miners holding all the coins claimed through transaction fees. If transaction fees are too low, miners won’t make new blocks and may move on. People have to spend it to gain market growth, but right now everybody is hording it. If the currencies lag in market acceptance, people may cash out and put a run on the exchanges. However, Wall Street now wants to bet on blockchain value, so any virtuous aspirations as a stable currency might just be smothered. People want to gamble. Blockchain can be an ingenious scheme to reward the people who bought in early.

From the other spectrum, for a charitable org I sponsor a wallet with some bitcoin. When I get a chance, I send some more. The value of my gift grows as general acceptance grows for the currency. I can track the org has received it and monitor the balance. I can encourage friends to send to the same wallet address. It’s a cool way to target and concentrate value.

To protect yourself, keep an offline secret wallet on a hardware device or paper printout, never give out the private key, nor email it unless you’re ready to spend it. Use different wallets for different purposes and keep low balances in online wallets. Don’t buy into new gimmick currencies (ico) until you track transactions/market cap. Beware of accepting payment before it’s confirmed (might be double spent). Trade in/out of $ only through a reputable exchange–I have bought from an ATM when value was growing faster than the fees, but would only use a top exchange to sell. I will keep most of mine to buy stuff priced in alt-currencies. Rumors are some big online retailers are looking into all the fuss.

Oh yeah, in case the power goes out, keep some hard cash around.

#130 Howard on 11.06.17 at 7:39 am

Speaking of asset diversity and commodities. Oil is now at a 2-year high but Canadian oil patch stocks have yet to break out, likely due to Canada’s regulatory regime, Quebec, and BC conspiring to kill off Alberta’s economy and potentially set off a national unity crisis. Despite this, it might be a good time to pick up a few low-debt oilies (not many of those, granted, but there are some with clean balance sheets) that are still priced for near-bankruptcy.

#131 Gravy Train on 11.06.17 at 7:43 am

#80 MF on 11.05.17 at 8:43 pm
“I have to thank you Stone for the recommendation to read ‘The four pillars of investing’.”

Other great books on investing are Stocks for the Long Run by Jeremy Siegel, Business Adventures by John Brooks, Common Stocks and Uncommon Profits by Philip Fisher, and almost anything written by Michael Lewis.

#132 Preferred Shares in TFSA on 11.06.17 at 8:47 am

Should I be putting Preferred Shares in my TFSA or I’m I better off sticking with bonds. I read somewhere that Preferred shares makes most sense in a non-reg account but I’m currently working on maxing out my TFSA.

What to do??

#133 LivinLarge on 11.06.17 at 9:01 am

“Buy the Big Six Canadian banks that pay 4%+ dividend. Reinvest the dividend in same. The dividend plus the 2% yearly that the TSX will deliver will give you 6% + per year.The banks will do well in a rising interest rate environment and you will sleep well at night. Buy and fuggeddaboutit.”…no surprise that I agee totally with this but I will add a little “IMO” to it. First, no need to spread this over all the banks, pick the top performing 2 or 3. Also, look at each bank’s indivdual history of splitting their shares. That is the measure of their historical capacity to deliver accelerating bottom line income. I have known a lot of people who simply look at the bank’s current closing price and compare it to the closing price from a few years back without realizing that there are twice as many shares priced at today’s price than there were those years ago. The bank hasn’t changed their capitalization when they split just doubked the shares at half their previous value.

Lastly, depending on when in the cycle you buy bank shares there can certainly be ugly periods like ’09-11 but the div keeps on giving. No major Canadian bank has ever reduced or suspended their quarterly dividend. So while there can be capital reduction if you bought just before a period like ’09-11, that capital reduction is wiped out if you hold until the inevitable return to capital value in a couple of years all the while you collect and reinvest the divs through the dividend reinvestment plan.

FYI, one of our banks happens to be the longest dividend deliverer in Canada and maybe N. America.

So, the 2% TSX component of the growth mentioned above, is IMO a little low. While I haven’t confirmed it, there was an article in the Globe last year that claimed that the average annual compound capital growth for the Canadian banks was more like 6% and that has accelerated in the last year or so. Just look at the charg for a bank to see whether they have actually outperformed the TSX and by how much.

#134 NoName on 11.06.17 at 9:01 am

#112 Nonplused on 11.06.17 at 1:21 am

Is that you fat Tony?

#135 r152 on 11.06.17 at 9:26 am

I saw examples price going down in Vancouver called Pink Pumpkin.

If it is Toronto or GTA what we call it?

#136 maxx on 11.06.17 at 9:30 am

#14 stage1dave on 11.05.17 at 1:26 pm

“Strangely, I can still buy these at Value Village for $1.99…guess they haven’t caught on yet!”

Part of any healthy, balanced budget is visiting second-hand shops. You just never know……last week, scored a pair of Oakley feedback sunglasses in filthy but perfect condition for .50 cents. If you have an eye for quality and know your labels, you make out like a bandit. Amazing places, love ’em, love ’em, love ’em!

#137 Dissident on 11.06.17 at 9:42 am

Bah. Bitcoin. I know a tech nerd who bought an extra PC with enough power and capacity to “mine” his own bitcoins. Slow going though. You will have a huge electricity bill. Some people do that at work and siphon off the company’s energy bill. Haha. You have no idea.

But, I bet you guys are not that advanced to mine your own. You just talk a big game about buying them online like all the basic bitches.

#138 Calgary Rip Off on 11.06.17 at 9:45 am

Your post addresses the need to invest in different types of investments, but doesnt list timing as to which ones and why. Bonds vs. stocks, for example.

Assumed is that people buy houses, or condos, simply because of possible investment increases on that asset. What about the reality that in many places rents and mortgages are similar? Oh yes, there are many upkeep costs on a mortgages. Some just dont like financing someone elses cash flow by renting from them.

Also not addressed are the personal variables.

I was at church yesterday. Most 90%+ of what I see is either depressing or enraging in the mass media and general populace. Its nice though being able to not engage in what most think is necessary. First, prayer is free. Immediate pipeline to God. He hears prayers. Second, each person chose Gods plan. Why? They have a body. Now it is their agency that is free. They are free to choose whatever they want to do. That is a responsibility and a privilege. Morality does influence ideas and what is seen as important and from those variables investing strategies are also influenced. Perhaps outline, as previously, specifics on aggressive vs. conservative investing and why. You may be surprised at how much business you generate, people may line up for you as their investment advisor.

#139 For those about to flop... on 11.06.17 at 9:48 am

#117 morrey on 11.06.17 at 2:26 am
dear: For those about to flop Your posts are meaningless. We are not privy to the selling price in all of your links. ie. we are supposed to believe your reporting. But if you keep insisting on posting do try to make them in readable English and parseable.

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

Don’t be lazy.

If you don’t believe me or are that interested, take the address and do your own research…

M43BC

#140 Dissident on 11.06.17 at 9:48 am

#16 Felix

That’s right, Felix. Cats have standards. Dogs will hump anything with a leg. They will also eat other dogs’ excrement.

#141 IHCTD9 on 11.06.17 at 10:26 am

#45 crossbordershopper on 11.05.17 at 6:02 pm
simple, stop buying all this crap made in china that you dont need, and you will be surprised how little you really need to live on.

__________________________________________

Good post. I don’t know what my financial situation will be come retirement, but one thing is for sure, I will be fully able and content to live on just CPP/OAS. The best things in life are free, so worry about your own household and enjoy the peace of mind and freedom to think independently from the masses.

I regularly catch crap for not owning a Cell phone or Cable/Satellite TV. I routinely absorb flak for my 20 year old TV, my 18 year old car, and 22 year old Pioneer home Stereo. Even my toaster is 15 years old.

I do not suffer from keeping up with my peers and co-workers so there is no real reason to replace a perfectly good working TV just because it’s older than dirt.

Lifestyle inflation is slowly starting to catch up with me as I age, but it doesn’t owe me a dime. By the time I near retirement – there is actually an excellent chance that buying gasoline, electricity, and heating fuel will be optional for me. My cost of living is already dirt cheap – and all indications are that it’s going to get cheaper.

#142 technical analysis is not.. on 11.06.17 at 10:28 am

astrology

this is a follow to Friday’s post. Respondign to the person who stated its as ‘valuable as astrology’

i replied with a trade ; weed.to closed with bullish engulfing pattern on highER volume. Took a bullish late in the day and stated ‘let’s see what happens early next week’

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=CA%3AWEED&time=6&startdate=1%2F4%2F1999&enddate=11%2F6%2F2017&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=4&style=320&size=4&x=32&y=9&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9

did i get lucky? …:)

#143 Daniel James on 11.06.17 at 10:29 am

What we fear. Indeed. Watching the fake news out of the Kingdom of Saudi Arabia and thinking: I have assisted in bringing the Hollywood elite and even Weinstein himself to the allegorical hangman. I have assisted in sending Harvey Keitel and family (Saudi royals) fleeing for their lives. It always takes some time for my articles to find their way into the right hands, but it always eventually happens. Ingmar K. (Ikea leader and cast member of M.A.S.H.) ran away immediately after my article on him. Why? Well, I suppose because Ikea admitted to employing thousands of political prisoners in East Germany in the 70s and 80s.

You still think I’m crazy, Garth? HHCE.

#144 Daniel James on 11.06.17 at 10:42 am

I did an article on Ratzinger a few years ago. A few days later, he became the first Pope to quit in over 600 years of the history of the Papacy. Coincidence? I think not. And I do this in my spare time. My wife tells me not to be over-confident. I dunno. Do you think she’s right?

#145 paulo on 11.06.17 at 10:44 am

r152:

Pink Smoke

#146 Capt. Serious on 11.06.17 at 10:47 am

#105 Jamie Dimon on 11.05.17 at 11:18 pm
… Maybe some other blog dogs could lend me there approach as to when they were just breaking into the investment world?

Focus on the savings part. In early years you’re just accumulating. Pick a world ex Canada equity ETF, Canada equity ETF, preferred shares ETF, REIT ETF and blended govn’t / corporate short term bond index ETF and set it up at a discount brokerage. Done. When you have enough assets, move to an advisor if that’s your inclination.

#147 LivinLarge on 11.06.17 at 10:59 am

Just an addendum to my 09:01. I looked at RBC’s full year results vs. S&P TSX as of Friday and they out performed it by about %12.75 and that’s all tax advantaged capital gains.

#148 FOUR FINGERS WATSON on 11.06.17 at 11:14 am

#133 and 147 LivinLarge

These Canadian companies have been paying dividends for well over 100 years.

Bank of Montreal (BMO) – paid dividends since 1829.
Bank of Nova Scotia (BNS) – paid dividends since 1832.
TD (TD) – paid dividends since 1857.
CIBC (CM) – paid dividends since 1868.
Royal Bank (RY) – paid dividends since 1870.

#149 IHCTD9 on 11.06.17 at 11:15 am

#91 n1tro on 11.05.17 at 9:30 pm

Plenty of exchanges to cash out bitcoins. My take on it is that the price is being driven up by the same type of moisters that drove up GTA real estate. Same “prices will only go up for xxx reason(s)”. This doesnt mean one shouldnt get in to cash in on stupid.
_________________________________________

… and again the same damp ones paying 8K for a 90’s rust bucket Ram if there happens to be a 6BT under the hood.

But you’re right, if I had a couple old Ram diesels lounging out back, half sunk into the ground; I’d be on the TD9 shoveling them out of the dirt faster than you can say “rolling coal”.

Make hay when the sun (or stupid) is shining.

#150 mike from mtl on 11.06.17 at 11:16 am

#132 Preferred Shares in TFSA on 11.06.17 at 8:47 am

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

Exactly, but in a TFSA you’re not taxed at all on dividend payout or capital gains.

I keep CA prefs in my TFSA but it’s too small of an account so there’s also some in RRSP and non-reg.

#151 dontcallmeshirley on 11.06.17 at 11:29 am

The overrated mortgage “stress test” can be beat by stating future rental income on a mortgage app.

The real killer is banks appraising light.

#152 n1tro on 11.06.17 at 12:00 pm

Bitcoin 101
—————-
Hopefully explained at a high enough level so everyone can understand.

Bitcoin is a made up digital currency. It’s worth is whatever 2 people who are transacting with it deems it to be.

Why is Bitcoin unique? Multiple reasons but the high level is 2 fold. Bitcoin is modeled around it being a finite commodity like gold or gasoline. Initially, it was easy to “mine” Bitcoins but it getting harder and harder. The fact it gets harder to mine a Bitcoin gives it value because more and more energy is put into getting one.

Mining involves using computers/ASIC machines which calculates a big ass equation which gets harder each time it is derived. A bitcoin is generated at certain points of the equation.

The second part of making Bitcoins unique is that while people/energy are used to “mine” or solve the big ass equation, the solving of the equation is verifying all the transactions ever made using Bitcoins. This part is what people get confused on.

For every financial transaction using say a $100 bill, there is no way that anyone would know it’s journey (eg. printed at US mint, paid out at the bank when someone cashes cheque, landing on the stage at a strip club as a part of a “making it rain” episode, then to be rolled up and used to snort some white stuff, etc…)

With Bitcoin, all the transactions made with a bitcoin is encoded and has a trail. This is good for the banking industry as it does away with maintaining ledgers and having to verify with other banks if a transaction is legit.

In summary, Bitcoin is a made up currency which takes real resources to generate. It’s worth is determined by its users. The resources used to generate a bitcoin is also verifying all the transactions made using bitcoin.

In the end, Bitcoin solves currency devaluation based on over printing and also providing a means to verify all transactions made. It is also “cool” to be using something most people don’t understand.

#153 Dups on 11.06.17 at 12:17 pm

What do you think of new leaks?

http://www.chicagotribune.com/business/ct-biz-paradise-papers-20171106-story.html

#154 Where's the love? on 11.06.17 at 12:21 pm

“Find love”

Unfortunately, us millennials have destroyed love.

#155 Old Dog on 11.06.17 at 12:31 pm

#105 Jamie Dimon
“Maybe some other blog dogs could lend me there approach as to when they were just breaking into the investment world?”

I invest in individual companies and I have pretty well 100% equities. I’ve been investing for over 45 years. Even at my age I still keep almost 100% equities. Reason being it gives me the best return over time. You’ll need a strong stomach though in bad times. If you’re not interested in being involved in your portfolio, don’t like to worry over bad markets, then follow Garth’s advice. ETF’s are an excellent way to invest. I just personally like buying individual stocks.

Some suggestions for starting out.

1. You build wealth steadily without taking enormous risks.

2. Choose your advisor carefully, who you can trust and who’s advice you can rely on.

3. Invest in a minimum of four or five stocks—one from each of the five main economic sectors, Manufacturing & Industry; Resources; Consumer; Finance; and Utilities.

4.You can buy them over a period of time.

5. When you get over $100,000 you should have 10 to 15 stocks.

And buy well established companies. Be patient. It takes a life time to accumulate wealth.

And remember you get what you pay for with free advice. A good advisor is worth his weight in gold.

#156 IHCTD9 on 11.06.17 at 12:54 pm

#59 Aroha on 11.05.17 at 7:14 pm
Brought home puppy for the first time ever last night and have regrets. The thing just wont stop whining and crying and barking. I want my freedom back! Lucky I didnt buy that condo I wanted! Still have that freedom!
______________________________________

Trade it in for a Cat. Get a Male Orange Tabby, they just don’t care. You’ll also get twice the miles for half the cost with a Cat. You’ll have no freedom with a Dog, even when it’s not a puppy anymore.

#157 Lost...but not leased on 11.06.17 at 1:01 pm

#136 maxx

Re: 2nd hand stores, etc.

We are currently cleaning out an estate. The VAST majority of the items are being given away. The market for most used household items is dead.

We put a number of items “For Sale” on Craigslist….response was underwhelming.

Even e-mailed dealers with what we though were the more valuable items…no interest.

Tried the auction houses…one even sent over an appraiser..no interest.

What isn’t going to Value Village is either listed under “freebies” or left out on the curb…which has proven to be popular as almost all the items are being picked up.
Value Village has saved us a lot money taking the items we donate.

Example: a full dining room set (6 chairs, table, hutch and sideboard) almost mint condition….best we could get was $100.

Decent 5 piece bedroom set….gave it away.

Working TV’s….to recycler.

The rest of the items are going into a rented dumpster.
Even this is a bit complicated, as there is a long list of items they won’t accept and have to be sent to appropriate recyclers.

Craigslist “freebies” are full of items one could literally furnish a home with.

How does this relate to Real Estate? ..well it appears we have a consumer market fully prepared to increase their debt load by purchasing the latest, most modern(fill in the blank______).

#158 Astrology on 11.06.17 at 1:13 pm

#142

+8% today. Hmm…. I must admit that you called that right.

Did you buy 4M shares this morning?
Volume is double the average already, 3 hrs before closing.

Well done,

But I need some more data points before I concede.

Do another one!
Get it right, three in a row, and I will have to revise my opinion on it.

#159 Tony on 11.06.17 at 1:22 pm

Re: #155 Old Dog on 11.06.17 at 12:31 pm

Better pray the bankers don’t pull the plug on the market or you’ll be searching the want ads.

#160 Lost...but not leased on 11.06.17 at 1:23 pm

#152 n1tro

Re:Bitcoin 101

Appears Bitcoin is not user friendly, rather complicated, hence the domain of geeks.

However, lots of rumours that mainland Chinese are using Bitcoin as a means to either launder money and/or simply via currency exchange bypass Gov’t limits on transactions and transfers of cash out of China.

Finally, I see no safeguards that will prevent BitCoin from crashing like any other fiat currency, etc.

#161 Tony on 11.06.17 at 1:25 pm

Re: #151 dontcallmeshirley on 11.06.17 at 11:29 am

That wouldn’t work in Alberta where the vacancy rate is about 40 percent and rents continue to fall.

#162 LivinLarge on 11.06.17 at 1:30 pm

Four Fingers, ABSOLUTELY and that is part of my point.

One of those did as far as my memory serves, suspend at least one quarterly dividend during the depression. Two of them are the result of past mergers. CIBC is a merger of the Canadian Imperial Bank and the Commerce Bank so tracking the merged unit back before the merger is a dicey proposition. TD is a merger of the Toronto Bank and the Dominion Bank and and the same history issue is at work.

So, RBC, Scotia and BMO are the oldest sustained structure banks. BMO may be the 4th largest CDN bank but it has been paying divs the longest and has never missed a div or even cut a div and has a great share split history too. My personal favs are RBC and BMO but in modern history any of them are money spinners.

#163 isuckless on 11.06.17 at 1:46 pm

Dogs are what Harley motorcycles are for bikers.
They used to be symbols of freedom but now are just a loud, dirty and smelly things.

#164 Tazi Bnu on 11.06.17 at 2:09 pm

#160 Lost…but not leased on 11.06.17 at 1:23 pm
#152 n1tro

Re:Bitcoin 101

Appears Bitcoin is not user friendly, rather complicated, hence the domain of geeks.

However, lots of rumours that mainland Chinese are using Bitcoin as a means to either launder money and/or simply via currency exchange bypass Gov’t limits on transactions and transfers of cash out of China.

Finally, I see no safeguards that will prevent BitCoin from crashing like any other fiat currency, etc.
__________________________________________
There is no law or government protecting this currency. Also people keep saying “since there’s a cap, there won’t be any currency devaluing issues.” They neglect to say that bitcoin is infinitely divisible. That means instead of inflation being the main concern it’s constant uncontrollable deflation.

#165 TurnerNation on 11.06.17 at 2:34 pm

BTC BSDs all over this weblog means time to short BTC.

#166 Stan Brooks on 11.06.17 at 2:35 pm

https://www.youtube.com/watch?v=q5wTH4CpnuI

#167 jess on 11.06.17 at 2:35 pm

rent your own jet or yacht?

The Formula One world champion, Lewis Hamilton, one of the world’s richest sports people, avoided paying European taxes on his private jet using an Isle of Man scheme that is to be investigated by HM Revenue and Customs.

The big four accountancy firm EY and Appleby, the law firm at the centre of the Paradise Papers leak, helped Hamilton and dozens of other clients set up seemingly artificial leasing businesses through which they rented their own jets from themselves.

Two law professors who reviewed the scheme described it as potentially “abusive”, saying it doesn’t appear to follow European rules. “No one seems to be enforcing the laws that exist,” said Rita de la Feria, chair of tax law at the University of Leeds…”

https://www.theguardian.com/news/2017/nov/06/lewis-hamilton-avoided-taxes-jet-isle-of-man-scheme-paradise-papers

#168 AGuyInVancover on 11.06.17 at 2:37 pm

#56 et al For those about to flop…
So? Minor price decreases and you can bet everyone of them sold to an offshore buyer or someone bankrolled by offshore money. There is no correction, the market is still broken.

#169 Overheardyou on 11.06.17 at 2:55 pm

Very informative post for those of us lost in investing, Thank you. I am wondering if hiring an advisor has the same requirements as having a bank to manage your money? I’m asking because in order to have a bank actively manage and advise you some are requiring a $250,000 minimum amount to invest. Would a personal adviser have the same type of requirement?

#170 re., 124 Dharma Bum on 11.06.17 at 2:57 pm

The masses are ignorant.
For one thing, that’s why religions thrive.
But I digress.
People are generally stupid.
If they can’t touch it, feel it, see it, smell it, taste it, live in it, they don’t understand it.
They have no patience to plant seeds today, and reap the rewards later.
Delayed gratification is lost on most people. Everybody wants stuff – and they want it NOW. Borrow, borrow, borrow. Spend, spend, spend.
Saving and investing? Hah!…why, that’s just a scam.
A confederacy of dunces.

“When superior people hear guidance, they carry it out diligently and ably. When mediocre people hear guidance, it seems vague and uncertain. When lesser people hear guidance, they laugh.”
― Lao Tzu

……………

with nearly every post you mock your fellow man. Lao Tzu is rolling in his grave

#171 Tater on 11.06.17 at 3:00 pm

#142 technical analysis is not.. on 11.06.17 at 10:28 am
astrology

this is a follow to Friday’s post. Respondign to the person who stated its as ‘valuable as astrology’

i replied with a trade ; weed.to closed with bullish engulfing pattern on highER volume. Took a bullish late in the day and stated ‘let’s see what happens early next week’

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=CA%3AWEED&time=6&startdate=1%2F4%2F1999&enddate=11%2F6%2F2017&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=4&style=320&size=4&x=32&y=9&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9

did i get lucky? …:)
—————————————————————–
Yes. You got lucky.

#172 re., 158 Astrology on 11.06.17 at 3:01 pm

#142

+8% today. Hmm…. I must admit that you called that right.

Did you buy 4M shares this morning?
Volume is double the average already, 3 hrs before closing.

Well done,

But I need some more data points before I concede.

Do another one!
Get it right, three in a row, and I will have to revise my opinion on it.

…………..

no no no no. I bought ON FRIDAY. near the close- i let the day’s candlestick anatomy form. I have search screen, have a look at about 3:45pm. Remember, we are dealing with PROBABILITY. I pulled the trigger when much is on my side and ALWAYS with a stop loss set to 2% of trading account.

cheers!

#173 Braj on 11.06.17 at 3:09 pm

#164 Tazi Bnu on 11.06.17 at 2:09 pm
#160 Lost…but not leased on 11.06.17 at 1:23 pm
#152 n1tro

Re:Bitcoin 101

Appears Bitcoin is not user friendly, rather complicated, hence the domain of geeks.

However, lots of rumours that mainland Chinese are using Bitcoin as a means to either launder money and/or simply via currency exchange bypass Gov’t limits on transactions and transfers of cash out of China.

Finally, I see no safeguards that will prevent BitCoin from crashing like any other fiat currency, etc.
__________________________________________
There is no law or government protecting this currency. Also people keep saying “since there’s a cap, there won’t be any currency devaluing issues.” They neglect to say that bitcoin is infinitely divisible. That means instead of inflation being the main concern it’s constant uncontrollable deflation.

***

WRONG. It is not infinitely divisible. Google what 1 Satoshi is.

#174 tax breaks on 11.06.17 at 3:10 pm

The paradise papers…

I’ve read only the summary of this story, but it clearly stated no illegal activity had taken place. — Garth

The question then is that why do we have tax rules that only 3000 taxpayers can take advantage of?

#175 jess on 11.06.17 at 3:46 pm

What happens when the super-rich write the tax rules? They fail
David Cay Johnston

The Paradise Papers reveal how dark money rules the world. We can’t let this conduct put our liberties, and our fortunes, in jeopardy
============================
Appleby’s attitude toward integrity in foreign jurisdictions is hinted at in a PowerPoint presentation about anti-money laundering. One slide says “Some of the crap we accept is amazing, totally amazing”.

#176 Capt. Serious on 11.06.17 at 3:51 pm

3. Invest in a minimum of four or five stocks—one from each of the five main economic sectors, Manufacturing & Industry; Resources; Consumer; Finance; and Utilities.

This is terrible advice. Do not follow it.

#177 Shorting on 11.06.17 at 4:14 pm

#165 TurnerNation

BTC BSDs all over this weblog means time to short BTC.

Ha ha… you don’t have the financial reserves to cover a short.

What if it goes to $80K per coin next year?
What if it goes to $800K the year after that?

Nobody can afford to short BTC.
Because there may be many more greater fools than you ever expected, which will blow your short position out of the water.

It’s like saying, in the year 1630: “What? tulip bulbs are 20 guilders now? Way overpriced, I am going to short sell it.”

And then 1631 happens, and then 1632 happens, etc….

Nobody will take that chance with BTC. And those who did are bankrupt now.

#178 Blacksheep on 11.06.17 at 4:39 pm

Flop # 139,

#117 morrey on 11.06.17 at 2:26 am

dear: For those about to flop Your posts are meaningless. We are not privy to the selling price in all of your links. ie. we are supposed to believe your reporting. But if you keep insisting on posting do try to make them in readable English and parseable.
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Don’t be lazy.
If you don’t believe me or are that interested, take the address and do your own research…
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I can understandably hear in your language, that you’re frustrated with your lack of access to insider RE info, but the fact remains only these two simple numbers, are all that is needed to determine market direction:

A) The price paid for a piece of property.

B) The price that same property sold for.

All other info is just noise.

#179 n1tro on 11.06.17 at 4:45 pm

#160 Lost…but not leased on 11.06.17 at 1:23 pm

#152 n1tro

Re:Bitcoin 101

Appears Bitcoin is not user friendly, rather complicated, hence the domain of geeks.

However, lots of rumours that mainland Chinese are using Bitcoin as a means to either launder money and/or simply via currency exchange bypass Gov’t limits on transactions and transfers of cash out of China.

Finally, I see no safeguards that will prevent BitCoin from crashing like any other fiat currency, etc.
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Not User friendly? It about as complicated as an EMT. The support around it as a currency may be complicated but not really if you think about what the inventor of it tried to do. No doubt bitcoin is being used to launder money among other things. This is nothing new. Bitcoin just made things simpler instead of doing thousands of western union transfers under $10K using fake IDs. The sad part is the laundering trail is all in the blockchain and the dots are connected once the bitcoin is converted to cash. The safeguard of bitcoin compared to paper money is that it is fixed and not controlled by a government so it can not be inflated away. Think of bitcoin as gold 2.0.

#180 re. Tater on 11.06.17 at 4:47 pm

probability had it rising short term, that part was on my side.

i did get lucky with the extent of today’s rise. She ended the day with MASSIVE volume , on the days high. up 14%….:)

#181 NoName on 11.06.17 at 5:09 pm

#179 n1tro on 11.06.17 at 4:45 pm

The safeguard of bitcoin compared to paper money is that it is fixed and not controlled by a government so it can not be inflated away. Think of bitcoin as gold 2.0.

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it can be legislated out, and that is lot easier than inflating it out.

#182 Dharma Bum on 11.07.17 at 6:21 am

#170 re: #124 Dharma Bum

“With nearly every post you mock your fellow man. Lao Tzu is rolling in his grave.”
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With laughter, that is.