The charade

Yesterday this pathetic column brought you the equally pathetic note of a 21-year-old bank financial advisor. “I’m interested in the field of Advising and Investing,” he said, “but I am working for a company in the industry that only lets you sell what they want and not what’s best for the client which makes it difficult to learn past the bubble they’ve created.”

His employer is one of the Big Five banks. I’ll let you guess which colour.

The point was simple: he’s not an advisor. He’s a salesguy. He lacks training, experience and substance. And yet he’s a front-line rep for an institution in which people place blind trust. Because he’s ethical, he’s troubled.

So are the feds. On Tuesday came news the financial consumer watchdog has decided to crack down on the banks for exactly this kind of devious and self-centred customer service and will be beefing up enforcement, supervision and monitoring. It may also consider the torturing of bank CEOs by making them attend a Pitbull-and-Rocky, real estate and bitcoin wealth expo. Few are expected to survive.

“Banks are in the business of making money, we know that,” says the Financial Consumer Agency of Canada. “But the way they sell financial products and manage employee performance, combined with how they set up their governance frameworks can lead to sales cultures that are not always aligned with consumers’ interests.”

Ya think? Having a 21-year-old sitting behind a desk, advising unknowing people on investments, while having a sales quota for bank mutual funds, is a blatant conflict of interest. A charade. Shame on the bank. Shame on customers whose financial illiteracy put them in that chair.

Well, time to review some of the rules of engagement when it comes to getting help with your money.

Overall, never take advice from someone selling stuff. Especially high-MER mutual funds or incomprehensible insurance products like universal life. Never buy an RESP from some dude who shows up on your doorstep after baby is born and you’re swimming in hormones. Never, ever give your money to an advisor you’re related to, think is hot, went to school with, dated, or who married your cousin.

Don’t invest with anyone who doesn’t give you a comprehensive plan first. Do not agree to the ‘discretionary’ management of your money unless you really, really trust the advisor. Never pay more than 1% annually of what you invest for advice and portfolio management – which should be largely tax-deductible. Refuse to hire anyone who wants to be paid on a transactional basis, making money only when they trade.

Scoff any advisor who tells you they only deal with the rich and requires a minimum of five hundred thousand or a million. That’s code for, ‘I don’t like to work  hard but deserve obscene pay.’ Never robo, unless you require no tax advice, no help with retirement or investment strategies and trust an algo with your savings. Be careful about ‘wealth management’ shops that stick your money into a proprietary client fund they created. Without trading on the open market it may have no liquidity. Eschew mutual funds, of course. Dinos. You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t. And in a crisis a mutual fund company can shut the door and prevent you getting out.

Unless you have seven figures to lay down for a portfolio, forget stocks. To achieve reasonable diversification, you need cash for meaningful positions in six dozen companies, plus enough left over to fund the fixed-income portion. Don’t take advice from [email protected] to go and invest in real estate,  because she just did and it always goes up. She’s actually fronting for an organization that thrives on handing out mortgages which they call “relationship products.”

Know that advisors who sell mutual funds are paid by trailer fees and commission, the worst of which is DSC – a deferred sales charge. This is equivalent to fund prison, designed to mess with your head by charging you to cash out within seven years – so you won’t. Of course every day you stay invested, you pay more. So knock off a couple of guards and vault the wall.

Advisors who work by the hour, draw up a plan and hand it over are called fee-only. Then it’s up to you to build and manage the portfolio, which seldom works. I mean, when was the last time you changed the furnace filter? A fee-based advisor usually does a plan, implements it and is paid by your accounts (as mentioned, 1% a year is enough). S/he should also map out a long-term financial plan, give you valid tax advice, plan for retirement, help you with real estate financing, kids’ education costs or leasing a car. And remember that accountants are not advisors. By law, they work for the government.

Mostly, never take advice from a free blog. Especially one with dogs. How serious can that be?

206 comments ↓

#1 Tkid on 03.20.18 at 5:08 pm

That is the BEST freakin’ photo to ever grace this blog.

#2 mutual funds on 03.20.18 at 5:10 pm

‘You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t. And in a crisis a mutual fund company can shut the door and prevent you getting ou’

fees have come down dramatically Garth, we can thank etfs for that. You can get a balanced fund for UNDER 1% mer. It re-balances FOR you. Can set up an auto-monthly buy, no extra charge.

they are not evil, evolving …..

Never put all your money in one asset. Plus do not concentrate on fees only. You hire an advisor for advice. – Garth

#3 Steve on 03.20.18 at 5:14 pm

Garths saved me twice. I’m going to keep listening to the dog man.

#4 Lazy Canadian Millenial on 03.20.18 at 5:24 pm

Garth can you do my homework for me? I’m stumped at Lesson One in my Securities course.

#5 Van man on 03.20.18 at 5:24 pm

Any advice on where to go to pay less than 1% in fees? The lady and I just laid down $$K in TFSA with big Canadian Bank and MER fees were anywhere from 1.18% for Index Fund to 2.6% for Mutual Fund.

They pushed hard on the higher MER mutual funds the buggers… when I asked why they’re pushing the higher fee portfolio’s the 22 y/o and his “boss” gave me some bs answer. I don’t have the background to challenge their answer though. Buggers.

#6 A J on 03.20.18 at 5:26 pm

So much corruption coming to light.

Keep it coming!!

#7 espressobob on 03.20.18 at 5:26 pm

Global and balanced portfolios offer freedom. Take profit from the winners and load up on those damn underperformers. Yes, it’s a tedious task and a good reason for professional management.

At some point in ones life it becomes clear. An income strategy based on the overall yield can go into your pocket without touching capitol and the daily stress of the markets.

For millenials it’s more about growth. Time horizon is the criteria.

I learned a few things from Garth, I hope?

#8 LP on 03.20.18 at 5:26 pm

#130 For those about to flop… on 03.20.18 at 11:48 am

Hey Linda,I’m saddened to hear about your husband.
May he have brought you years of joy.
****************************************
Thank-you Flop for your kindness. Yes, my 46+ years with that wonderful man were joyous. There was never a single day when by word or deed he didn’t think of me first. His celebration of life was truly a celebration – of a happy man, of a life well lived, of a loving and caring father, grandfather and husband, of a true friend. As weird as this will sound, his service was a happy time, more laughter than tears, more smiles than sadness. Joe would have loved it!

#9 scooby doo on 03.20.18 at 5:26 pm

Had my taxes done a couple of days ago. I was anticipating a sizable return, in part because I have two children in university and I could write off their tuition fees. No more said my tax guy, who made me aware that the Liberal government did away with that write off recently. This government has got to go!

#10 I’m stupid on 03.20.18 at 5:27 pm

An update from the ground. A few builders I spoke with recently are having big problems getting their new homes closed. Apparently people think if they don’t do the mandatory PDI inspection they don’t need to close the homes. That of course is false, these builders are having to get their lawyers involved because the buyers aren’t responsive. Other buyers aren’t able to close on their new homes because the appraisals are coming in too low so the banks aren’t lending. It’s a complete disaster and the correction has only began. I’m speaking of the 905 region, single family new home construction.

#11 gary smith on 03.20.18 at 5:34 pm

So are the feds.consumer watchdog has decided to crack down….

Great to hear and it was a long time coming. Wonder how many less sophisticated folks were taken advantage of by these hucksters.

True story- anecdote time. Went into a “big green bank” to open up a RESP for kids. Went the self-directed route. Before that, the fresh-faced 20 year old “advisor’ tried to review my options and sell me a bank RRSP. He clicked through the questions on his screen and recommended, of course, a fund with a high MER and low returns.

He couldn’t answer basic questions, and could only relate what he read on his screen. I had 10 years on him and could have done his job.

I’ve taken steps to educate myself and by no means am I a sophisticated investor. However, based on the FREE information out there, its relatively easy to set up a balanced portfolio.

#12 isuckless on 03.20.18 at 5:44 pm

So, yes it was a great advice, however where someone 5 (or 7) years before retirement should go to. I admit I tried all except 1% fee advisor (was rejected there), made my mistakes and slowly (too slowly :() learning but still need a lot of guidance.
M59ON

#13 Guy in Calgary on 03.20.18 at 5:46 pm

#5 Van man on 03.20.18 at 5:24 pm
Any advice on where to go to pay less than 1% in fees? The lady and I just laid down $$K in TFSA with big Canadian Bank and MER fees were anywhere from 1.18% for Index Fund to 2.6% for Mutual Fund.

They pushed hard on the higher MER mutual funds the buggers… when I asked why they’re pushing the higher fee portfolio’s the 22 y/o and his “boss” gave me some bs answer. I don’t have the background to challenge their answer though. Buggers.
—————————————————————-

For less than 1% have $1M plus in investments or your advisor will be Mr/Mrs Google.

Honestly if you are just starting out a robo-advisor is a great option if you have the risk tolerance. Dips your toes into ETF’s and auto rebalances for you.

Without knowing age, income, life expectancy, family dynamic, insurance, if there are pensions etc. etc. it is almost impossible to give appropriate advice. If you sit with a banker and they don’t ask you those personal questions, time to get out of there because they don’t truly care.

#14 Mark on 03.20.18 at 5:51 pm

“#10 I’m stupid on 03.20.18 at 5:27 pm
An update from the ground.”

No surprise there. The appraisals aren’t coming in at higher than the houses were contracted for (the result of post-2013 stagnation in the GTA/GVR), so there’s obviously significant distress on the part of many of those who thought that contracting for a new home a couple years ago was a way to pick up $100-$200k of free equity. “money for nothing”, the delusion of rising prices on identical individual properties when all that was in fact being observed in GTA/GVR in the post-2013 peak era was a shift to the sales mix.

The question is, how close are we to seeing 1994-style blow-outs of property? Can’t take too many defaults to set the developers over the edge. Its not like they can turn around and sell the properties to anyone else without incurring significant discounts these days, and the banks might be getting a tad bit nervous about the loans.

#15 morrey on 03.20.18 at 5:51 pm

Banks should NOT be allowed to see financial products. period. never.

#16 Smartalox on 03.20.18 at 5:52 pm

“But the way they sell financial products and manage employee performance, combined with how they set up their governance frameworks can lead to sales cultures that are not always aligned with consumers’ interests.”

We see this over and over again, with telecommunications companies (Rogers, Bell) and ALL the banks, including Wells Fargo in the US.

Has anyone else noticed the similarities amongst these cases? It seems to me to be like clockwork. Soon enough the consumer reporters are on the case, and there are teary interviews with former ‘customer care agents’ confessing that they had to abuse seniors or get fired for not making their targets.

So predictable. It’s almost like something out of a textbook.

Perhaps that quote above should read something like this:
“I think that it’s safe to say that when you put 20-somethings with MBAs in marketing from 2nd tier (or lower) schools in charge of your customer care departments, you’re well on your way to a culture that is not well aligned with your customers’ interests.”

#17 Trocxi on 03.20.18 at 5:55 pm

A fee-based advisor usually does a plan, implements it and is paid by your accounts (as mentioned, 1% a year is enough). S/he should also map out a long-term financial plan, give you valid tax advice, plan for retirement, help you with real estate financing, kids’ education costs or leasing a car. [Garth]

Does your firm really do this all for e-v-e-r-y client?

#18 friend to cats on 03.20.18 at 5:56 pm

Only CPAs, not the milky ‘accountants’ who are sitting on the other side of the desk at Liberty Tax Service or the Blockheads making minimum wage.

#19 Yvrworry on 03.20.18 at 5:57 pm

“You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t”

Did you just diss Ryan? :)

No. He has Lambos. – Garth

#20 MF on 03.20.18 at 5:58 pm

How can you tell who is a fee only adviser versus a “regular” adviser?

Do you just ask?

It’s clear I don’t have the balls to follow through with proper investing, even though I know about balanced portfolios/rebalancing etc.

My parents are with the wealth management arm of one of the big six, and they want me to use their adviser. They trust this person immensely. He also advocates an ETF only approach that seems similar to Garth’s.

The adviser will charge me the reduced MER that my parents enjoy because of their larger portfolio. 1.25%.

Should I go ahead? Any advice is appreciated!

MF

#21 Long Branch Apprentice on 03.20.18 at 6:00 pm

How any times do I have to say it?

Canadians are scared of math and therefore scared of taking control of their financial situations.

A childhood of shitty math teachers and an education system that punishes risk takers will do this to a society.

Actually, I’ll admit I had a few good math teachers in my day, funny how they were always nerdy men…I digress.

Where am I going with this?

Doug Ford is appealing to people that can do math and understand what an 8 billion deficit means in both the near and intermediate future.

With today’s New Math or whatever the fudge it’s called don’t be surprised when the student debt crisis comes home to roost.

I know at least 2 people (couples) who had a mortgage and didn’t know what an amortization table was. No clue of how much principle was paid down versus interest. No concept of how compound interest works.

Always have a calculator on you folks.

#22 Freebird on 03.20.18 at 6:04 pm

I’ve sent two millennial couples to your blog (just past 30). One are listening and have some hope and may have got them before refinancing with oh so helpful mortgage agent (he was willing to work with them…of course). The other, well they’ve made many mistakes warned about here and quickly sliding behind the eight ball in many ways. Oh yes, hubby is newly self employed and possibly collecting EI and she’s trying to get pregnant. I tried of them about this blog way before both. It’s a slow moving crash. This blog might save one of the of two. Fingers crossed. But who knows maybe couple two will get woke.

#23 LivinLarge on 03.20.18 at 6:05 pm

Oooooooo, well done Fearless Leader!!! Excellent blog tonight. You can take the rest of the day off.

#24 TRUMP on 03.20.18 at 6:06 pm

Forget all those funds….

Put all your money in Bitcoin, Twitter, & Weed

THE GENTLEMAN’s PORTFOLIO

#25 Freebird on 03.20.18 at 6:09 pm

Apologies for typos. iPhone autocorrect needs work. Maybe I need a new phone.

#26 espressobob on 03.20.18 at 6:09 pm

#5 Van man

Dump the bank staff. The fees and incompetence are laughable. A fee based advisor will prove over time to be your saving grace.

Unless you want to study this boring and emotional subject, that may prove to be the best bargain over the long haul.

I hear there is a firm somewhere on some blog that can deliver?

#27 Nuke on 03.20.18 at 6:09 pm

https://www.fin.gov.on.ca/en/consultations/fpfa/regulation-of-financial-planners.html

The Ontario Government is plodding forward on who can call themselves a financial planner.

#28 Ian on 03.20.18 at 6:13 pm

Would this be an opportune time for me to go on my ‘reactionary government’ tirade again?

FCAC targets dodgy sales practices. In March of 2018. And this didn’t happen 30 years ago because…because…

While they’re at it, could they ask why the banks issued 1.3t in mortgages to Canadians ‘against the consumers’ interest’?

And #9 Scooby, of course the Liberals did away with good, smart, and decent tax deductions That’s what they do. In fairness, we did try to warn the country that a snowboarder might not make for maybe the best PM.

M48ON – UltraBlues!

#29 Reality is stark on 03.20.18 at 6:18 pm

Median family income in Toronto for a couple is $102,000. A lender is supposed to lend no more than 3 times median family income. A house in Toronto is $1.2 million. For those dingledorfs that think a house is still a great investment because it should be examined over a 50 year time horizon you need a head examination. Either that or you are a real estate agent.

#30 Penny Henny on 03.20.18 at 6:21 pm

I assume Garth is the one on the right.
Party on Wayne.

#31 New West on 03.20.18 at 6:22 pm

#8 LP on 03.20.18 at 5:26 pm

Linda, my sympathies to you too. Such a lovely tribute to your husband and your marriage – I can’t imagine how hard it must be losing someone so beloved. Having those memories is a precious gift that I hope will be some consolation as you start the next phase of your life.

Money really isn’t anything in the end, is it?

#32 For those about to flop... on 03.20.18 at 6:25 pm

Sitting in San Francisco International airport on a delay watching a sea of humanity pass me by.

Just saw a guy with a t-shirt on that had a caricature of Trump with a clown nose and the wig.

Caption read…

Elect a clown

Expect a circus…

M43BC

#33 Catalyst on 03.20.18 at 6:25 pm

I don’t know who is left – where can one find reputable firms that would manage money for 1% if you have sub 500k to invest?

Easy. Many will. – Garth

#34 Penny Henny on 03.20.18 at 6:30 pm

Advisors who work by the hour, draw up a plan and hand it over are called fee-only. Then it’s up to you to build and manage the portfolio, which seldom works. I mean, when was the last time you changed the furnace filter?-GT

///////

Elcaminokid just calls the landlord and fills out a form.
Cause changing a light bulb is hard :(

#35 Dave Ahem on 03.20.18 at 6:37 pm

Advice from a 13 year [email protected] before I left for greener pastures.
1) Ask your advisor “How are you paid?”. You’re allowed to ask them that.
2) Advisors on commission spend 10% of their time on 90% of their poorest clients and 90% of their time on their 10% of richest clients. If they lose a whale, they have to sign twenty sheep to make back that income. Be prepared to be treated accordingly.
3) Fees are important, asset mix is even more important. Being overexposed to risk in a low cost ETF portfolio you did yourself can hurt you way more than going to [email protected] to properly allocate your funds and pay a little more.
4) If their title is Financial Planner, ask them if they are a CFP professional. If not, it’s a made up title that their bank gave them. They were the 21 year old kid in the branch not that long ago, they just sold more than everyone else. Get yourself a CFP professional who has undergone accreditation from a self governing body. They have a code of ethics they must follow and must complete continuing education credits every year to stay up to date on things.
5) I’ve never heard of any advisor who will work for 1% with no minimum asset amount. If you show up with $25,000, they’re going to make $250 off of you that year. You pay Rogers that in 2 months so get ready for about 2 months worth of Rogers service with your cash if you go that route. If you have zero experience and want to start investing, go to whoever you bank with and ask for their most experienced FA and insist on a minimum of 5 years experience. If they don’t have one of those, ask for the nearest branch that does. Then spend all of your free time educating yourself and when you’re ready, go self directed. It’s not that hard.

#36 espressobob on 03.20.18 at 6:40 pm

#14 MF

A regular or commissioned advisor will probably charge you 2% or two hundred bucks for any trade, whichever is higher. Sounds like fun? Don’t forget the yearly fee. Almost forgot those trailing commissions. Who’s winning?

Fee based advisors charge say 1% across the board that include trades and generally invest in low cost ETFs. Over time that can add up in your favor compared to the salespeople that will provide a big drag on your returns.

It’s all about choices.

#37 NoName on 03.20.18 at 6:44 pm

#171 Johnnyboy on 03.20.18 at 4:30 pm
#170 NoName on 03.20.18 at 4:16 pm

#156 Johnnyboy on 03.20.18 at 3:01 pm

deplorable vs affluent.
https://www.youtube.com/watch?v=Lrpkxl4DXtk
_________________________________________
Neither one invokes cranial superiority. I stand by the general Republicans being duped.
BTW I have a name for you!………………….

Please don’t tell me today, and ruin my un mandated day of happiness, do it tomorrow if you remember. :)

#38 donkey on 03.20.18 at 6:44 pm

gee, what is garth’s job and what advice benefits his profession the most?

Gee, did I make you come here? – Garth

#39 Penny Henny on 03.20.18 at 6:44 pm

#19 Yvrworry on 03.20.18 at 5:57 pm
“You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t”

Did you just diss Ryan? :)

No. He has Lambos. – Garth
//////

Is it catchy?

#40 Guy in Calgary on 03.20.18 at 6:46 pm

#20 MF on 03.20.18 at 5:58 pm
How can you tell who is a fee only adviser versus a “regular” adviser?

Do you just ask?

It’s clear I don’t have the balls to follow through with proper investing, even though I know about balanced portfolios/rebalancing etc.

My parents are with the wealth management arm of one of the big six, and they want me to use their adviser. They trust this person immensely. He also advocates an ETF only approach that seems similar to Garth’s.

The adviser will charge me the reduced MER that my parents enjoy because of their larger portfolio. 1.25%.

Should I go ahead? Any advice is appreciated!

MF
—————————————————————-

A letter of engagement should be presented and the amount and method of compensation should be outlined in there.

You are asking a blog of anonymous people to ask if you should go ahead with an advisor no one hear knows. Meet with the person and ask the tough questions. You post here a lot so I assume you have the knowledge to ask the tough questions.

Good luck.

#41 Whatcha Minnie on 03.20.18 at 6:50 pm

Took a half year off to find a full time job before graduating, and saved up a bit of cash. Managed to work full time and finish degree within a year and a half. By the time I graduated, I was living in my own apartment with a comfortable monthly income. Job has nothing to do with what my degree is, but it gives me great work experience and new skills not connected with my degree. Though I am not working in my field, I am at least happy being able to pay the bills and have some fun.

#42 Bottoms_Up on 03.20.18 at 6:51 pm

5 Van man on 03.20.18 at 5:24 pm
—————–
Open a TFSA via questrade.com.

Transfer in your money. Buy XSP.to

voila, you now own the S+P500 at an on-going cost of 0.1%.

Oh yea, its also free to buy ETFs through questrade.

#43 Stone on 03.20.18 at 6:57 pm

#30 Penny Henny on 03.20.18 at 6:21 pm
I assume Garth is the one on the right.
Party on Wayne.

———

Party on Garth. Queue the air guitars…

#44 Newcomer on 03.20.18 at 6:58 pm

#29 Reality is stark on 03.20.18 at 6:18 pm
Median family income in Toronto for a couple is $102,000.
——

Can I ask where you got that number? It seems high.
Looking around, I found this:
https://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/the-great-toronto-disconnect-house-prices-and-incomes/article34623683/

which puts at $78,667 in 2017.

#45 Condor on 03.20.18 at 7:01 pm

I hear a lot about “never” buy mutual funds. However I have been a holder of Mawer funds for years. I use a combination of their International and Global Equity funds along with the Global Small Cap. Just don’t expect an advisor to sell you these funds as their funds are no load and pay no trailer. MERS are reasonable. ETF’s are fine but I don’t mind paying a little more for some active management and many of their funds consistently beat the index year after year. I do agree that many (most) mutual funds out there are expensive duds, but Mawer certainly doesn’t fit into that category.

#46 slowgrowth on 03.20.18 at 7:08 pm

IMHO, advisors should not charge based on asset, they should only charge a percentage of profit. In this case, 10%, or even 50% is acceptable and brackets like those used in income tax makes sense. This will guarantee alignment of interest. Does anyone know such a service exists to ordinary people?

Only a fool would reward someone else for taking large risks with their money. Better think that one through. – Garth

#47 TEMPLE on 03.20.18 at 7:08 pm

To achieve reasonable diversification, you need cash for meaningful positions in six dozen companies

What?! Seventy two stocks?! Come on, Garth, who fed this to you? You know, there is actual research on this subject. The real number, depending on how much variability/volatility you are willing to accept over a big index like the S&P500, is maybe 20-25. Probably not even that many.

Nope. Categorically incorrect. – Garth

#48 NoName on 03.20.18 at 7:20 pm

#32 For those about to flop… on 03.20.18 at 6:25 pm
Sitting in San Francisco International airport on a delay watching a sea of humanity pass me by.

Just saw a guy with a t-shirt on that had a caricature of Trump with a clown nose and the wig.

Caption read…

Elect a clown

Expect a circus…

M43BC

i have same sticker on a wife’s car

#49 TEMPLE on 03.20.18 at 7:24 pm

Nope. Categorically incorrect. – Garth

Yep. Completely correct. Here’s one of my many sources:

https://news.morningstar.com/classroom2/course.asp?docId=145385&page=4

I have a bunch more. None of them cite a number anywhere close to 72 stocks. Where are your sources?

Experience. – Garth

#50 SI2K on 03.20.18 at 7:26 pm

I guess the green bank. Do I win? Only because they recently made us fill out a risk/assets profile in order to *remove* our funds. Oookay then, greenie.

#51 Mark on 03.20.18 at 7:39 pm


“#42 Bottoms_Up on 03.20.18 at 6:51 pm
5 Van man on 03.20.18 at 5:24 pm
—————–
Open a TFSA via [an online broker]
Transfer in your money. Buy [a S&P500 fund with embedded futures contracts to short the US dollar] …

Dangerous. Did you even bother to ask him about his risk tolerance? The purpose of the money? Any tax implications that may be applicable? How much TFSA ‘room’ may even exist? What about implementing some geographic diversification? You propose to eliminate currency diversification, another dangerous thing. Your proposed portfolio provides for no rebalancing bonus and is in an asset class that basically has only gone up for the past decade and may be richly valued. The investment you propose is full of derivatives.

I don’t want to discourage independent research, knowledge, and learning, (“Couch Potato Portfolio” is a great term to type into your favourite Internet search engine!) but your ‘advice’ may very well be even worse than [email protected]’s collection of overpriced balanced mutual funds.

#52 Lawnboy on 03.20.18 at 7:40 pm

#21 Long Branch App Math Wiz

Brother….a new Millwright shows up on my job so I wanted to do the skill test, see what we got.

Q: How many 64ths are there in an inch? ( I used a slide rule in high school)

A: He blurts out 32!!!!

Your only 1/2 right I say…..buddy, do you remember where you parked?

#53 Andrew Woburn on 03.20.18 at 7:41 pm

Trump Saves Alberta?

“And if he does it at his next opportunity, Iranian oil flows could begin to dry up just at the time when both OPEC and the IEA see the global oil market returning to supply shortage. In 2012, the imposition of tough sanctions targeting Iran’s oil industry cut the country’s exports by around 1 million barrels a day. A repeat would double the expected supply deficit in the second half of this year.”

– Death of Iran’s Nuclear Deal Could Set Oil Bulls Loose

https://www.bloomberg.com/gadfly/articles/2018-03-18/trump-death-of-iran-s-nuclear-deal-could-set-oil-bulls-loose

#54 Penny Henny on 03.20.18 at 7:47 pm

#38 donkey on 03.20.18 at 6:44 pm
gee, what is garth’s job and what advice benefits his profession the most?

Gee, did I make you come here? – Garth

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

Donkey, the commentor, also goes by Ass.

#55 Penny Henny on 03.20.18 at 7:50 pm

#41 Whatcha Minnie on 03.20.18 at 6:50 pm
Took a half year off to find a full time job before graduating, and saved up a bit of cash. Managed to work full time and finish degree within a year and a half. By the time I graduated, I was living in my own apartment with a comfortable monthly income. Job has nothing to do with what my degree is, but it gives me great work experience and new skills not connected with my degree. Though I am not working in my field, I am at least happy being able to pay the bills and have some fun.
///////////////

Translation- I am a hooker now but I’m meeting all these great fatherly types.

#56 Reality is stark on 03.20.18 at 7:53 pm

To #44 Newcomer.
$102,000 is the median family income for couples with children. They are the ones who need the detached homes.

#57 Penny Henny on 03.20.18 at 7:54 pm

I’m being serious now Garth.
If I have $250,000 to invest or $1,000,000 to invest why should I be paying a different amount to a financial adviser/or?
Sort of like selling a house. 5% commission but same amount of work.
Please explain

#58 Bottoms_Up on 03.20.18 at 8:01 pm

#9 scooby doo on 03.20.18 at 5:26 pm
——————–
That is really disgusting that the Ontario liberals took away the tuition tax credit. And they dare to call themselves liberal. But I guess its the least we can expect from a bankrupt province.

#59 Hairhead on 03.20.18 at 8:03 pm

This advice is worth a LOT of money!

Thank you, Garth!

#60 beliedat on 03.20.18 at 8:04 pm

So… if we can’t trust robos, we can’t trust [email protected], our cousins or some crazy financial blogger…

Where does one find a reliable advisor (especially if investing less than 100k)?

#61 Where's The Money Guido? on 03.20.18 at 8:09 pm

With my deleted post Friday, Garth saved me a lifetime of money saved going to lawyers’ fees and I thank him tremendously for that. Party on Garth!!!!!!
I gotta stop posting SM style after one too many wobbly pops especially since I have no knowledge of libel laws.
So thanks again Garth, you saved my ass and major coin. But you know now my bent toward these people, if that’s what you want to call them, because they sure show no human qualities to me.

#62 DT on 03.20.18 at 8:11 pm

“Shame on customers whose financial illiteracy put them in that chair.”

Strongly disagree with this statement. I’m quite financially literate and manage my own ETF portfolio but am not an expert in all things. If I need to do work on my foundation or car I go to what I believe to be a professional. Those who aren’t comfortable with finances go to these places to better their own financial situation without knowing where else to go. Yes the information is out there but just like I am not interested in finding free information to repair my own foundation, these people are trusting what they are told by what they believe are professionals in the field. The blame is on the banks and sudobanks, not the mis- or uninformed people

Banks are for banking services. Don’t expect investment advice. – Garth

#63 Nonplused on 03.20.18 at 8:25 pm

That is one huge bass guitar in the photo.

So Garth, I am paying over 1% about 1.5% but some of it is tax deductible, or at least it was who knows what Moronreau has done these days. Should I switch?

His advice seems good enough although I know you didn’t like the fund that buys bank preferreds and then sells call options on them, but it’s a small bit of it. Might be time to sell that though and get the preferred shares directly because I don’t know if there would be any money in selling calls on preferreds when rates are rising. Maybe they’ll switch to puts.

Anyway, is there a polite way to take your portfolio back from your adviser? Or do you have to just treat it like human resources treats a layoff? “Sorry, it isn’t a good fit”.

And I am not sure about the bit about using an adviser that doesn’t have a minimum. If I only have $20,000 to invest 1% gives S/him $200 a year so I don’t think that affords the time to do much but some sort of standard thing S/he’s (notice I picked up on your compliance with C-16) doing for a large number of other clients kind of like a pool. S/he has to pay tax on that too so S/he isn’t even getting $200 a year to manage the portfolio. And if Raymond-James gets a slice S/he gets even less. And since Raymond-James will also have to pay taxes they need a larger slice. So my point is that if you have a small portfolio there is only so much advice and thought you are going to get for the somewhere around $50 a year the adviser takes home to manage it. You’ll end up in a pool, even if the computer doesn’t make it look like it. Thus, I would say for small portfolios, a robo-adviser is fine, because that’s what you are going to get anyway. At $50 a year your adviser cannot afford the time to even meet with you, let alone look into your personal situation. Sucks to be poor.

I could see a portfolio manager taking on a low net worth individual with a high income and “building a client” over time, but the fact is 80% of the people out there are hardly ever going to have 2 dimes to rub together, so why bother? And the problem is just going to get worse, because what Google maps didn’t take from the map makers, automated driverless cars will. GM expects to have cars without steering wheels by 2020. This $hit is about to get serious. Minimum wages won’t help unless the government can find a way to pay everyone a minimum wage even if they aren’t working.

#64 espressobob on 03.20.18 at 8:25 pm

Mutual funds? What do you own? Transparency issues? Tax efficiency? Rear loaded or F series, maybe somewhere in between? (that you could answer). Real costs? NAV to unit cost? Liquidity? Performance compared to benchmark? Did they cheat to outperform? Poor excuses on the downside like ‘defensive’?

Owning the major indices with ETFs only look scary from the outside.

#65 Stockgirl on 03.20.18 at 8:26 pm

Hey Garth, my dad has few million invested and his guy has him in 55-60 stocks. I’m selling my condo in van and moving to kelowna, will have 1.1m to invest. Should I go the stock route? Or etfs? Mr stock picker what do you think I should do?
Thanks
Stockgirl

Post your pic and phone number. – Garth

#66 Ronaldo on 03.20.18 at 8:33 pm

#13 Guy in Calgary

Without knowing age, income, life expectancy, family dynamic, insurance, if there are pensions etc. etc. it is almost impossible to give appropriate advice. If you sit with a banker and they don’t ask you those personal questions, time to get out of there because they don’t truly care.
—————————————————————-
Banks would sell an RRSP to your dog if they could get away with it. As Garth says, they are simply salespeople. Nothing to do with being a financial advisors. Many people should not be in RRSP’s to begin with. So many variables when it comes to setting up portfolios. Tax planning, Estate planning, etc. Everyone’s situation is different. It’s high time that these institutions got investigated for their shenanigans. Banks are not your friends. They are in it for their bottom lines and value for shareholders.

#67 PastThePeak on 03.20.18 at 8:33 pm

#9 scooby doo on 03.20.18 at 5:26 pm
Had my taxes done a couple of days ago. I was anticipating a sizable return, in part because I have two children in university and I could write off their tuition fees. No more said my tax guy, who made me aware that the Liberal government did away with that write off recently. This government has got to go!
+++++++++++++++++++++++++++++++++

Hey, that free tuition for students with households making less than $50k has to come from somewhere…!!!

I remember last year when this “free tuition” was announced by old Katy, and remarked to my wife that this particular part was not making any news. Back when I went to school it was a big deal. Somehow this slipped under the radar of the CBC / CTV / Red Star who are watch dogs of the people…{sarcasm}

So yes, for those parents (or students) who work & save for their own kids education, and have the ‘gall’ to make money above bare minimum – they were yet again given the shaft by the Ontario Liberals. Redistribution on top of redistribution.

Good to see some people, little by little, are starting to get it. I am afraid though, by the time enough do, it will be too late for Ontario.

#68 crowdedelevatorfartz on 03.20.18 at 8:42 pm

@#47 TEMPLE
“What?! Seventy two stocks?! Come on, Garth, who fed this to you? You know, there is actual research on this subject….”
++++++

Is The Economist enough of an objective reference for you?
THIS weeks edition .
Page73.
Title “Off the beaten track”.
And I quote.
“The past decade has been tough on fund managers who try to pick stocks that beat the market…….”

“The average number of stocks in a global equity portfolio has HALVED from 121 to 61….”

The long term consensus?
The average stock portfolio manager doesnt outperform the market and when their fees are added in……poof goes yer money.

Place yer bets…..

#69 crowdedelevatorfartz on 03.20.18 at 8:46 pm

@#38 donkey

Yes.
Yes you are.

#70 Ronaldo on 03.20.18 at 8:46 pm

#29 Reality is stark on 03.20.18 at 6:18 pm

Median family income in Toronto for a couple is $102,000. A lender is supposed to lend no more than 3 times median family income.
—————————————————————-
In my time it was 2.5 to 3 times single income. They did not include the other spouse (generally the wife) until I believe the mid eighties when real estate tanked and the realtors were pushing for the government to allow two incomes in order to qualify for a home purchase. This had the effect of increasing house values in the future. More government meddling in the housing markets. This and other reasons why houses now cost 10 times two incomes or 20 times single incomes for average priced homes.

#71 Glen B on 03.20.18 at 8:48 pm

More news from the ground. My place overlooks the sales trailer and vacant lot where the 2 Gibbs Road condo development is supposed to happen in Etobicoke. I can tell you that there are very very few cars visiting that sales trailer. Seems dead to me. A year ago, the same trailer was situated 200 feet north of where is is now when it was selling the One Valhalla complex next door. One Valhalla is now complete but not so sure of the future of 2 Gibbs.

#72 Nik on 03.20.18 at 8:48 pm

Garth, doesnt your firm (the Vancouver office) have a threshold of $500K to become a customer? BEcause of this I have chosen an advisor who works in Canacord, based on my colleague’s reco. He is charging 1.5% for $250K (plus etf fees of 0.5%). I agree that it’s high and I will try to negotiate but beyond the TFSA and RESPs I have no incentive to invest with this guy given the choppy markets we can expect this year. Any more/other advice?

You are paying too much. That’s so Vancouver. – Garth

#73 Ronaldo on 03.20.18 at 8:48 pm

#32 For those about to flop… on 03.20.18 at 6:25 pm

Sitting in San Francisco International airport on a delay watching a sea of humanity pass me by.

Just saw a guy with a t-shirt on that had a caricature of Trump with a clown nose and the wig.

Caption read…

Elect a clown

Expect a circus…

M43BC
————————————————————
What should a T-shirt in Canada read?

#74 donkey on 03.20.18 at 8:48 pm

no garth you do not, but i’ve been reading this blog from the start and i myself am happy that i didn’t buy in to your views from the start, although i’m sure many feel the opposite. all in good fun – enjoy your night

#75 renter in Surrey on 03.20.18 at 8:49 pm

OK, so what is the next magic bullet that will torpedo this Titanic of Canadian RE for sure? Any suggestions?

#76 Long Branch Apprentice on 03.20.18 at 8:51 pm

#52 Lawnboy

LOL

Permission to use that one on my coworkers please!

You’d think a millwright would have gotten that one.

I’m no Good Will Hunting but there’s no reason to be afraid of numbers. They don’t bite.

#77 Antibe on 03.20.18 at 8:51 pm

Check out the little Canadian pharma company that just proved up their NSAID (anti inflammatory drug) is better than the current king, Aleve (naproxen). People gobbling up shares today on the venture…licensing deals incoming- this drug will win awards and make mucho money. ATE.V (long time lurker, fan of you blog dogs… you’re welcome

#78 Mike in Airdrie on 03.20.18 at 8:51 pm

Last time I checked, accountants work for their clients not the government….well except for the ones that work for CRA.

Check again. – Garth

#79 ronh on 03.20.18 at 8:51 pm

Off topic – Bandit pics. He looks like a Chow – Keeshond cross. Give him a cooki

#80 meslippery on 03.20.18 at 8:57 pm

#29 Reality is stark on 03.20.18 at 6:18 pm
family in
Mediancome in Toronto for a couple is $102,000. A lender is supposed to lend no more than 3 times median family income. A house in Toronto is $1.2 million. For those dingledorfs that think a house is still a great investment because it should be examined over a 50 year time horizon you need a head examination. Either that or you are a real estate agent.
——————–
Ok so $102,000 Div by 2 $51,000 each of a couple.
1990 grade school education truck driver made $52,000
easy. House in York Region $50,000 and up.
Based on that a couple now needs a median income of???

#81 crowdedelevatorfartz on 03.20.18 at 8:58 pm

@ donkey

Ya might not want to travel to China.
Apparently donkey meat is considered a delicacy.
Nothing is wasted.
When the animal skins are boiled it produces a gelatine called “ejiao” that is used as a traditional medicine.
Donkeys ( as YOU know) are slow breeders….the chinese meat and skin trade has caused world wide concern that they may become extinct…….

https://www.google.ca/url?url=https://www.theguardian.com/global-development/2017/oct/31/the-chinese-miracle-elixir-that-threatens-donkeys-around-the-world&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjZp4jtmvzZAhVGVWMKHYsnBbIQFgggMAI&usg=AOvVaw3hIZKgjpfXENK4pLpDtjx5

Hmmmm.
If only we could convince them Peanut Butter was an aphrodisiac….
Georgian peanut farmers …….
The US trade imbalance would be solved.

#82 Flat Earth Society on 03.20.18 at 9:00 pm

So just to sort of clarify how banks print money from nothing yesterday, some people didn’t like my simplification.

Only the central bank can actually print money, but they can do it against a wide range of assets. Only safe assets though. Gold (yes still), government bonds, money markets, other currencies, etc. For example the bank of China can buy US government bonds and then print Yuan. That’s why they have so many of them.

Chartered banks don’t actually print money but what they do has the same effect. Let’s tell a story.

A man deposits a gold coin in the bank. Well the bank doesn’t want the gold coin the want interest so they lend the coin to another man with good credit who wants to buy a horse. What does the seller of the horse do? He deposits it in the bank because it’s too dangerous to have that kind of cash lying around the house. Well the bank doesn’t want the gold coin so they lend it again to a guy with good credit that wants to buy a wood stove. What does the seller of the wood stove do with the gold coin? He deposits it in the bank. Well the bank doesn’t want the gold coin anymore than they did last time so they lend it on yet again to a shop keeper who needs to bring in inventory. In my little example here 1 gold coin has resulted in 3x’s as many deposits and credits as there are coins, but it goes on and on. The bank has in essence created 3x’s as much money as there are coins. However as long as the loans are performing it all works.

This is why banks never go broke from having too many deposits. If they have too many deposits they can refund the money even if they cannot pay the interest. At least you will get your deposit back. Instead, banks go bad when their loans go bad. Bad loans, bad bank. If the bank cannot collect on it’s loans, it cannot pay you back your deposit. This is where the term “bankrupt” comes from.

It gets worse, because depositors who suspect their bank may not be able to pay them back immediately move to withdraw all their money, which is known as a “bank run”. It’s a serious thing because even if the bank is relatively ok they cannot meet the cash demand without immediately foreclosing on all their loans which they cannot do that fast. They do not have very much money, only a fraction of what they have lent, which is why it is called “fractional reserve banking”.
So they have to sell their assets to the central bank which just prints up the money to buy them until the crisis passes. But at all times somebody owns the loan, and there isn’t a problem unless the residual value of the asset is less than the value of the loan and the reserve.

#83 Jacques Strappe on 03.20.18 at 9:04 pm

#21 Long Branch Apprentice on 03.20.18 at 6:00 pm

“….Always have a calculator on you folks.”

Thanks to modern technology, we can do a fair bit better – smartphone has a fairly well appointed spreadsheet app everywhere. Amazing computational power on a device that is smaller and sleeker than the HP business/financial calculator that I used to carry everywhere.

Solves the net present value, equivalent annual worth, rate of return, etc. equations a helluva lot faster too!

Knowing how to do these calculations saves thousands over a lifetime too……you wouldn’t believe the fraudulent numbers I have caught a number of salesmen trying to pass off on financed purchases.

#84 Risktopia on 03.20.18 at 9:06 pm

Looking at the other side of the fence…Even if the mention of a Porsche is enticing, think twice about becoming a portfolio manager. Their days are numbered.

http://www.risktopia.com/2017/12/think-twice-about-becoming-portfolio.html

#85 Jon on 03.20.18 at 9:12 pm

“Never robo, unless you require no tax advice, no help with retirement or investment strategies and trust an algo with your savings.”
Although I agree somewhat with this statement, Robos are the future of the financial advisor world. Just look at the disruption companies like WealthSimple are causing.

What disruption? Bit players. – Garth

#86 stage1dave on 03.20.18 at 9:22 pm

Is that Aerosmith t a M or L? I’m still lookin for one from the Pump tour…

#87 Myra Andrews on 03.20.18 at 9:22 pm

Greater Vancouver Housing Stats originally posted by realtor PaulB

March 20 New 279 Sold 142 TI: 8931
March 19 New 307 Sold 120 TI: 8862

March 16 New 158 Sold 117 TI: 8743
March 15 New 154 Sold 127 TI: 8737
March 14 New 231 Sold 140 TI: 8749
March 13 New 277 Sold 159 TI: 8688
March 12 New 327 Sold 139 TI: 8642

March 9 New 139 Sold 91 TI: 8510
March 8 New 196 Sold 118 TI: 8496
March 7 New 204 Sold 99 TI: 8442
March 6 New 246 Sold 130 TI: 8372
March 5 New 316 Sold 104 TI: 8344

#88 Walter Safety on 03.20.18 at 9:32 pm

Nothing happens until somebody sells something.

That’s what every business owner knows and regardless of how big the company the boss knows the top sales people.

#89 acdel on 03.20.18 at 9:41 pm

Great blog, sure wish I could have read this type of advice when I was in my twenties; oh well, cest la vie!

Those of you in your twenties early thirties; take note!

#90 John on 03.20.18 at 9:57 pm

Speaking of banks, here’s a situation I found myself in with one of the big five. Within my RRSP I had a [brain dead] GIC. When it matured, I wanted to open a trading account [within the RRSP] and move the money over. Well, you would have thought I was asking them to cut off their leg with a dull saw. It was insane. [email protected] told me that Itrade would have to do this the transfer. So I phone Itrade. After a scant 20 minutes on hold, the Itrade guy
tells me that my branch has to do it and that there is a method but, [email protected] doesn’t know how. I phone [email protected] and tell her what Itrade said. I suggested that someone must know how to transfer money from one account to another, seeing as that is WTF they do. Finally, three weeks after beginning this adventure, I had another Itrade account up and running. Only three weeks! After reading your last two blogs, Garth, I’m beginning to think that the branch didn’t want to do it because they don’t make any money off the deal. I know that they call people like me, who owe them nothing, a freeloader but, that is no excuse for the incredibly poor service. I had my mortgage with this outfit so I’ve done my part in contributing to the CEO’s yacht. Anyone else have this problem?

#91 Cici on 03.20.18 at 10:00 pm

Shouldn’t we be a bit worried though? At this point, if they start reigning in the banking-sector corporate greed, the whole bottom may fall right out of the Canadian economy…

But I guess we could all just mine bitcoins while waiting for things to pick up.

#92 Blackdog on 03.20.18 at 10:02 pm

@#9 scooby doo re: “Had my taxes done a couple of days ago. I was anticipating a sizable return, in part because I have two children in university and I could write off their tuition fees. No more said my tax guy, who made me aware that the Liberal government did away with that write off recently. This government has got to go!”

First of all, there was NEVER a “write-off” for tuition fees, but rather there are tax credits. Second, the tuition tax credit has NOT been eliminated. What is gone for 2017 is the federal education and text book tax credit. So, yes, you will get a tax break for paying your kids tuition, if they agree to transfer their tuition amounts over to you, just not as much as before.

#93 Financial Orchid on 03.20.18 at 10:03 pm

My cousin is one of them young 20something millennials in a fitted suit selling high MER mutual funds, and mortgages @ one of the big 5 to people older than him and I feel sorry he dropped out of engineering to “study” Marketing instead. It helps that he looks like an Abercrombie model. Gets his looks from his mom.

#94 Terry on 03.20.18 at 10:03 pm

#9
“Had my taxes done a couple of days ago. I was anticipating a sizable return, in part because I have two children in university and I could write off their tuition fees. No more said my tax guy, who made me aware that the Liberal government did away with that write off recently. This government has got to go!”

Time to get a new tax guy Scooby Doo. Your kids in College or University can deduct tuition fees on their tax return. If they have paid no tax or you have reduced their tax payable to zero then the tuition deduction left over can be claimed by you or your kids can carry forward the deduction to future years. Read all about it below.

https://turbotax.intuit.ca/tips/claiming-a-tuition-amount-from-your-childs-college-5123

#95 We are not worthy on 03.20.18 at 10:03 pm

The largess bestowed upon us innumerate deplorable mongrels by the fossilized wizard of all things financial is like totally excellent.

#96 Nonplused on 03.20.18 at 10:04 pm

#78 Mike in Airdrie on 03.20.18 at 8:51 pm
“Last time I checked, accountants work for their clients not the government….well except for the ones that work for CRA.

Check again. – Garth”

Garth is mostly right. Accountants are duty bound to report everything according to the current tax/SEC laws regardless. They can work for you in making sure you don’t pay too much, but they also don’t ever suggest you pay too little.

My accountants have been a godsend (I need 2 because I do business in the US). First of all because I have no idea even how to file in the US, but also because the Canadian one challenged an assessment he thought was incorrect and they paid me back enough to pay for that accountant for several years. However, if there were no taxes I would have no need of an accountant. I can count my own money, thank you. It’s only when the government wants to count it I need an accountant.

#97 Blackdog on 03.20.18 at 10:16 pm

@Scooby doo, Oh…and you need the T2202A for each of your children (should be available online through their student accounts at their schools, not necessarily mailed to you…mine weren’t) so that you can claim the tuition tax credits for each of them. If your accountant missed this, you should ask for your fee back.

#98 Loonie Doctor on 03.20.18 at 10:16 pm

I don’t know that I would really call robo-advisors a financial advisor disruptor. Better than a salesperson portfolio builder no doubt, but they seem more like automated portfolio builders and re-balancers to me. That could be a handy tool for the right price and a simple situation (like an automatic furnace filter changer?). However, a real financial advisor is so much more than that. Especially when you have the complexity of dealing with a business and/or large sums that need comprehensive tax planning, estate planning etc. etc.
-LD

#99 Ricky Tomatoes on 03.20.18 at 10:17 pm

Great post, Garth.

Will you be touching base on the three pillars of investing; balance, diversification, and liquidity?

#100 Mark on 03.20.18 at 10:17 pm

” And the problem is just going to get worse, because what Google maps didn’t take from the map makers, automated driverless cars will. GM expects to have cars without steering wheels by 2020. “

Wouldn’t worry too much about the driverless cars. Capital costs are likely going to be extreme up-front (figure a million bucks a vehicle), and ongoing mandatory maintenance requirements will be extreme if any actually make it onto the road.

Considering that UBER-brand taxi cab drivers gladly work for $3/hour, seems pretty foolish to think that there will be any substitution of such cheap labour for such expensive capital. Especially when there is such a severe surplus of labour which will incrementally be made worse through a housing market collapse, and probably the eventual downsizing of the industries in the “western” world that facilitate excess debt-fuelled consumption.

#101 Still employed in AB on 03.20.18 at 10:22 pm

The last time I sat down with an “advisor” at a branch he had a lot of questions. After a few minutes he decided he couldn’t sell me anything other than a better credit card. He was quite concerned about his job. He wanted to know where and how I’d acquired my financial knowledge (this blog + a couple books.) He also mentioned that if everyone knew what I knew he wouldn’t have a job.

#102 Blackdog on 03.20.18 at 10:25 pm

@John, #90, sad eh? Typical though. When I think of all the years I wasted with the nice lady at the bank and mutual funds… I remember towards the end, when I was starting to get wiser, thanks to Garth (cough), I asked her about investing in ETFs. She acted like she had no idea what I was talking about and had never heard of an ETF. This was only a couple years ago, so she was full of it obviously. Yet, she was such a seemingly sweet, personable lady who really seemed genuine. Good at her job I guess.

#103 Mark on 03.20.18 at 10:28 pm

“So just to sort of clarify how banks print money from nothing yesterday, some people didn’t like my simplification.”

So are we in agreement, that every dollar that is lent in the economy is, in the hands of the borrower, a debt, and in the hands of the lender, an asset? And that the business of banking is merely the practice of simultaneously acting as both a borrower and a lender? Hopefully earning a spread between the cost of funds and the return on investment?

My point stands, if you have an economy with a large amount of domestically funded consumer debt — you do not have a systemically bankrupt economy. Quite the opposite, you have an extremely vibrant economy that is so prosperous that the savings exists to make the loans in question. Which describes Canada to a “T”. The coming RE crash and the financial calamity that will invariably be its result will simply be a transfer of wealth from borrowers ultimately to savers. No longer will savers, including depositors, bank shareholders, etc., be forced to sit back idly while the borrowers gain hundreds of thousands of completely unearned equity. Certain Realtors even rubbing it in the faces of the investors/savers, such as this one:

https://www.century21.ca/scott.ingram/blog/20_years_of_Toronto_Real_Estate_ROI_Q4_2016

(not too intelligent of a Realtor I might add, doesn’t even adjust his figures for the changing sales mix, which makes his claims irrelevant and exaggerated!).

#104 Reality is stark on 03.20.18 at 10:34 pm

The banks are not your friend. They are an oligopoly put in place by the government. The government makes sure they never lose money for long since the government taxes the hell out of them. In the long term they are set up to rip you off unlike US banks that have to compete for business.
The Canadian government used the 2008 financial crisis to dupe the average financially illiterate Canadian that the Canadian banking system was solid and wonderful. Canadians bought it and continue to get ripped off in the long term with outrageous fees.
Canadians are socialist dupkoffs on their way to becoming Venezuelans.

#105 crowdedelevatorfartz on 03.20.18 at 10:38 pm

@#87 Dreary Wanms

News Flash!

“For Those About to Flop”.

Has been doing the same thing you do…..only much, much better, for longer…….

Time for a new ‘schtick” without pumping a realtor site.

#106 lawnboy on 03.20.18 at 10:54 pm

@ Longbranch Apprentice.
Permission granted….and honest, that really happened.

Have fun, fool your friends.

#107 Ace Goodheart on 03.20.18 at 10:56 pm

RE: “Just saw a guy with a t-shirt on that had a caricature of Trump with a clown nose and the wig.

Caption read…

Elect a clown

Expect a circus…

M43BC”

Apparently the old Yeller had consensual sexual relations with a Playboy Bunny and a Porn star.

And people are saying this is a bad thing?

#108 Smartalox on 03.20.18 at 10:57 pm

@Penny Henny #55:

Minnie the Moocher!

Folks, here’s a story ’bout Minnie the Moocher
She was a red-hot hoochie-coocher
She was the roughest, toughest frail
But Minnie had a heart as big as a whale

#109 Smartalox on 03.20.18 at 11:18 pm

America ‘blinks’ on NAFTA Auto Content demands.

We’re not out of the woods yet, but things are looking better!

Interest rate hike coming tomorrow.

#110 Bytor the Snow Dog on 03.20.18 at 11:20 pm

She’s hot, but we need more variety in these title pics.

#111 Calamity Jane on 03.20.18 at 11:52 pm

#10 I’m seeing the same thing with builders I know also in a 905 commuter burb. Recent closings not completed by the buyers and now back to the builder to sell, new sales absolutely crashing, and a trade shortage seemingly ending as more guys are looking for work from us when we couldn’t find guys a year ago. Compared notes with some in the industry and noticed a lot of common names purchased in multiple sites… from what I see I do think there’s far more speculation than many anticipate.

#112 LilyJoe~ on 03.21.18 at 12:01 am

Or a polka king, never take advice from or invest with one!

#113 concerned1 on 03.21.18 at 12:17 am

#55 Penny Henny on 03.20.18 at 7:50 pm
#41 Whatcha Minnie on 03.20.18 at 6:50 pm
Took a half year off to find a full time job before graduating, and saved up a bit of cash. Managed to work full time and finish degree within a year and a half. By the time I graduated, I was living in my own apartment with a comfortable monthly income. Job has nothing to do with what my degree is, but it gives me great work experience and new skills not connected with my degree. Though I am not working in my field, I am at least happy being able to pay the bills and have some fun.
///////////////

Translation- I am a hooker now but I’m meeting all these great fatherly types.
________________________________________

Lolz! Pretty much nailed it spot on. I love a woman with intelligence. Can I get a date Henny Penny? ;)

#114 Nonplused on 03.21.18 at 12:27 am

#100 Mark

“Wouldn’t worry too much about the driverless cars. Capital costs are likely going to be extreme up-front (figure a million bucks a vehicle), and ongoing mandatory maintenance requirements will be extreme if any actually make it onto the road.”

The first few will be well over a million per prototype, perhaps a billion, but that’s not how technology works. Once you get the software figured out the cost to print new copies is zero, you only have to pay for the hardware, which is also pretty cheap these days.

How much did you pay for Windows 10? Probably didn’t even know you did it was embedded in the computer. But I can guarantee Microsoft spent countless thousands of hours making it. How about the Intel chip that powers that laptop? Sure it’s less than $300 dollars but I guarantee it was a billion dollar investment for Intel.

Most people cannot fly a plane but planes have been flying themselves for years. The pilots are really only there in case something goes wrong. So why not cars? It’s just an advancement.

When they get the driverless cars to work, it will be too cheap to not get one, much like Windows 10, even though it’s crap.

#115 Flat Earth Society on 03.21.18 at 12:37 am

#103 Mark

Nope not quite in agreement.

When you see the “assets” of the central banks rising, that means they are having to print money to balance the deposit-loan equation. Rising asset sheets for central banks means too much debt and not enough deposits.

However there are some people who believe this must be an intrinsic feature of the system, sometimes referred to as the “11th marble”. Simply put and without much explanation, it goes like this: “If you borrow 10 marbles but have to pay 10% interest, where does the 11th marble come from?” It comes from the central bank.

I also disagree with your premise that there is always a deposit for every loan on the basis that if the loans fail, there are no deposits. The soundness of the deposits rests on the soundness of the loans. In my example of the gold coin lent out 3 times, if one loan fails only the guy who currently has the gold coin and can keep it by force has any money. Everyone else is busted.

#116 D-tree on 03.21.18 at 12:37 am

I’m happy with my robo advisor. Keeps my etfs balanced to my risk profile for a very small fee. I agree with Garth about the importance of tax advice but that should be done on an hourly payment rather than %.

#117 Mountain_camper_in_tent on 03.21.18 at 12:44 am

My DC plan with ML has a portfolio of retire_2035+.It has 90% international equity.Rest is Canadian.For last few years it’s been going gangbusters….12% or higher return.

Question is…is this a good strategy going forward for next decade?

I plan to retire in 2035.

#118 Dave on 03.21.18 at 12:53 am

Been reading this for a while still can’t figure out what this means [email protected] thanks

#119 Cowpoke on 03.21.18 at 12:59 am

Get the cows in the barn and milk’em.

#120 Smoking Man on 03.21.18 at 1:28 am

Miss me puppies.

We got the cast and are shooting in two weeks.
Been busy as shit. Just caught up with my news.

So reading in the Toronto Sun last week Wynee told a bunch of students to get out and vote. Other wise old white guys will do it for you.

Today I read she’s offering free drugs for anyone over 65 Shit load of old white guys in that demographic.

Skin pigmentation comes in all colors. Just wondering what tone of white color takes you into the cross hairs of identiy politics. Can you escape the rath on newly minted SJW communistd if your sporting a good tan. Im working on it.

I don’t know. I just know that dead fish have an ugly stench. Just like political parties that have been in control for two long.

Remember absolute power corrupts absolutely. Time to bury a dead fish.

Bye Kathleen Wynee thank you for your service.

Dr Smoking Man
PhD Herdonomics.

#121 Myra Andrews on 03.21.18 at 2:28 am

@#105 crowdedelevatorfartz

“@#87 Dreary Wanms

News Flash!
“For Those About to Flop”.
Has been doing the same thing you do…..only much, much better, for longer…….

Time for a new ‘schtick” without pumping a realtor site.”

Crowdie you need to dig out your reading glasses. No real estate website is mentioned in the #87 post.

#122 Where's The Money Guido? on 03.21.18 at 2:49 am

Re: #72 Nik on 03.20.18 at 8:48 pm
Garth, doesnt your firm (the Vancouver office) have a threshold of $500K to become a customer? BEcause of this I have chosen an advisor who works in Canacord, based on my colleague’s reco.
+++++++++++++++++++++++++++++++++++++++++++++++++++
Better watch out for Canaccord, been in trouble with the regulators a couple times, as recent as a couple years ago:
https://www.bcsc.bc.ca/News/News_Releases/Canaccord_Capital_agrees_to_fines_and_audit_for_involvement_in_Stanhiser_and_Excel_investment_fraud/
http://business.financialpost.com/news/fp-street/canaccord-to-pay-over-1-million-to-settle-claims-of-inadquate-retail-supervision
http://business.financialpost.com/investing/canaccord-genuity-ordered-to-pay-550000-by-sec-over-underwriting-deal

Hope you saw these before investing with them, not very ethical co., imo.
I hope that’s not libelous….
I remembered them because of the headlines of how bad they were in Vancouver ~20 years ago in a scandal that I cannot find on the net for some reason. It could have been the one I’ve shown, but it doesn’t ring a bell, so with a little more sleuthing you could find it.
So tread carefully….

#123 martin9999 on 03.21.18 at 4:16 am

sometimes you are damn right, hence

Mostly, never take advice from a free blog. Especially one with dogs. How serious can that be?

#124 Al on 03.21.18 at 4:51 am

“You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t.”

The guest authors of this blog and they’re clients may be disappointed to hear this :)

But seriously this post should be a sticky, good work!

#125 Shawn on 03.21.18 at 5:32 am

BAML fund manager survey shows fund managers are once again crowding to overweight Europe and EMs and are underweight the US.

Prepare for a period of US equity outperformance.

#126 Shawn on 03.21.18 at 5:38 am

COT data shows that speculators are very short the Nasdaq relative to other major indexes. More short than they have been at any point in the past 5 years. The last time they were even close to being this short was 2012.

Say what you want about valuation, FB, FANG, etc.

Prepare for a period of significant Nasdaq outperformance.

#127 LivinLarge on 03.21.18 at 6:48 am

Dave, “The Nice Lady At The Bank”.

That sweet, obliging person (not totally gender specific) whom the bank needed to promote one step beyond teller without putting them into the actual management program stream. They wrote the IFIC test and have the basic ticket to flog mutuals.

#128 Hamsterwheelie on 03.21.18 at 6:55 am

Met a ‘financial advisor’ she started right away with complicated life insurance, then mutual funds. I asked her about buying ETFs and her response was ‘Why?’
I should refer her to this blog but would it help?
We ended up doing nothing, signing nothing as I felt more self education was needed & this was not the place for our meager $50 – 100 000. Could this be the year I open a TFSA and start dabbling online? Seems thats the route to go for those of us who ain’t riding with the big dogs.

#129 Andrewt on 03.21.18 at 7:36 am

A look back at what the wealth expo attendees thought a year ago. It was a simpler time…

https://torontolife.com/real-estate/think-going-go-even-sky-high-wealth-expo-attendees-talk-torontos-housing-market/

#130 Erico on 03.21.18 at 7:42 am

#90 John

This is a normal procedure. It has more to do with the government than with the banks unwillingness to transfer your funds. (Because of RRSP)
I went thru this several times. Open brokerage account (Itrade,Questrade Etc.) fund your account by transferring assets in kind or in cash from bank’s rrsp account, initiate transfer (sign papers) thru brokerage , they send the request on your behalf ,bank has no choice but to oblige, wait 10-25 days. Notice that the bank charged you $100.00 transfer out fee, clench your fist,stare at the sky and yell obscenities,done.

#131 earlybird on 03.21.18 at 7:47 am

#118 Dave
Been reading this for a while still can’t figure out what this means [email protected] thanks

The Nice Lady at the bank or…
The Nasty Lady at the Bank…depending on your perspective…

I had the front desk lady at the bank outright said she had pity for us as renters and when she opened up our account information, she immediately offered us her newly renovated basement suite she had for rent!!
The Naughty Lady at the bank….

#132 Renter's Revenge! on 03.21.18 at 7:59 am

#65 Stockgirl on 03.20.18 at 8:26 pm
Hey Garth, my dad has few million invested and his guy has him in 55-60 stocks. I’m selling my condo in van and moving to kelowna, will have 1.1m to invest. Should I go the stock route? Or etfs? Mr stock picker what do you think I should do?
Thanks
Stockgirl

Post your pic and phone number. – Garth

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

You’re just gonna throw her to the dogs like that?

#133 crowdedelevatorfartz on 03.21.18 at 8:19 am

@#121 Yamr Drawnes

“Greater Vancouver Housing Stats originally posted by realtor PaulB”
+++++
Oh right.
If you gave his full name he’d be crucified by his “peers” for providing sales info. My mistake.
Po-Tay-To.
Po-Tah-To.

#134 Igor Lalin on 03.21.18 at 8:27 am

I’m good at science but a total noob when it comes to financial investment. Anybody can recommend a source of relatively unbiased knowledge so I could move away from my wealth management mutual fund company and start investing on my own?
My three little kids depend on this website and you guys…

Cheers

#135 NOSTRADAMUS on 03.21.18 at 8:32 am

BANKERS TRADE OFF.

Looking through the mists of time I see that the Banks are quietly in the process of dividing up their kingdoms. The logic being, why kill the bottom line by competing against each other in backwater towns. Lot more profitable to come to a gentleman’s agreement. Bank ” A” agrees to pull out (shut down) their branch in say Pontypool and leave bank ” B” a free hand with no competition from Bank “A” . In return Bank “B” agrees to pull out (shut down) their branch in say Bethany and leave Bank “A” the only bank in town. Absolutely brilliant, repeat this process all across Canada and the towns ( Boss Bank) can charge the locals whatever they can get away with. Remember there is no other bank competition in your little town. Also, another plus for this gentleman’s agreement, they can get rid of the excess staff and the expenses of operating a profit draining bricks and mortar back water problem child . Think about it. Absolutely brilliant!

#136 JohnnyBoy on 03.21.18 at 9:15 am

#37 NoName on 03.20.18 at 6:44 pm
#171 Johnnyboy on 03.20.18 at 4:30 pm
#170 NoName on 03.20.18 at 4:16 pm
#156 Johnnyboy on 03.20.18 at 3:01 pm

deplorable vs affluent.
https://www.youtube.com/watch?v=Lrpkxl4DXtk
_________________________________________
Neither one invokes cranial superiority. I stand by the general Republicans being duped.
BTW I have a name for you!………………….
___________________________

Please don’t tell me today, and ruin my un mandated day of happiness, do it tomorrow if you remember. :)
_______________________________________
Spring has sprung the grass has rizz. You do realize that both Deep State and Drain the Swamp are phrases market researched and tested by both Cambridge Analytica and Russia as ways to appeal to ignorant, uneducated voters and make them afraid of things that aren’t real. Saying it over and over just shows us you were a target. Somewhere in here is your new name. Enjoy :)

#137 IHCTD9 on 03.21.18 at 9:26 am

#110 Bytor the Snow Dog on 03.20.18 at 11:20 pm
She’s hot, but we need more variety in these title pics.
___________________________

I sent Garth a pic of our cat, but I think he just turfed it.

#138 Leo Trollstoy on 03.21.18 at 9:30 am

Chris still showing that he doesn’t understand the fractional reserve banking system ?

#139 PastThePeak on 03.21.18 at 9:38 am

#118 Dave on 03.21.18 at 12:53 am
Been reading this for a while still can’t figure out what this means [email protected] thanks
++++++++++++++++++++

The Nice Lady at The Bank.

Dave – not to be too snarky – but you really need to learn how to use a search engine. Typing that acronym into Google showed the description in 0.5 seconds…

#140 Buy Low Sell High on 03.21.18 at 9:46 am

Re #73 Ronaldo
What should a T shirt in Canada say?

Elect a snowboard instructor, expect to go downhill!

Or

Elect a drama instructor, expect some tears!

#141 Hiding on the Backstreets on 03.21.18 at 9:52 am

@ #28 Ian

And #9 Scooby, of course the Liberals did away with good, smart, and decent tax deductions That’s what they do. In fairness, we did try to warn the country that a snowboarder might not make for maybe the best PM.
—————

That’s disrespectful. Don’t sell T2 short. What about his drama credentials?

#142 LivinLarge on 03.21.18 at 9:55 am

Igor, a very valid question but eliminating an advisor’s bias an difficult and maybe just accepting that bias is a better path. Being a practitioner in the industry isn’t necessarily a “bad” bias.

Our Fearless Leader of this blog has decades of experience in financial journalism AND he’s the only one I know of who has also been a Minister of National Revenue so that alone gives him a unique advantage over the plethora of self proclaimed “experts”.

Fearless Leader has a whole library of financial books published so a starting point would surely be to read 3 or more of them. I would also suggest reading his books at least twice back to back. One reading isn’t always enough to grasp all the concepts sufficiently right out of the gate but he certainly writes so the average Joe can comprehend.

#143 Howard on 03.21.18 at 9:59 am

Premier Horgan at 52% approval, tied with SK Premier for most popular in the country.

Seems people like the direction he is taking on housing.

http://angusreid.org/premier-approval-march2018/

Wait. People are just wanting to justify their mistake. Human nature. – Garth

#144 LivinLarge on 03.21.18 at 10:00 am

Nostradamus, while it may be logical or even “Absolutely brilliant ” but that doesn’t actually make it so. I have worked in banking in the past and as far as I know there was no collusion regarding placement of branches. For many decades there could be a branch on every corner in larger towns and cities. With the growth of online banking there has been a resulting drop in the need for brick and mortar branch growth.

#145 mike from mtl on 03.21.18 at 10:09 am

#90 John on 03.20.18 at 9:57 pm

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

John, unless qtrade is somehow different, I believe [email protected] is correct. The RECEIVING party must fill out ‘transfer to another institution’ paperwork, hence qtrade. Sometimes the originating firm will confirm with the account holder (you) if they should proceed and /may/ charge a transfer fee**. This is more for the CRA to not count such action as a withdrawal from a registered account. No firm has the right to refuse transfers, even fully taxable withdrawals, worst case dig fees, – though, private equity you’re on your own.

I’ve done this so many times when consolidating my investments to my bank’s brokerage arms. With Qtrade you get what you pay for, I personally don’t trust them.

**Some firms like the fruit people charge a fixed fee to transfer TO not FROM another institution. Read the fine print.

#146 For those about to flop... on 03.21.18 at 10:11 am

I dreamt of going back to San Sebastián for Spring Break ,but after consulting my Stephen Poloz 2018 Edition Travel Calendar, I settled for San Diego…

M43CA

“Mapped: The Largest Company by Revenue Headquartered in Every State

A lot of people look for jobs at big companies because they can be great places to build a solid career. Unfortunately, if we measure the size of a company in terms of annual revenue, there may not be a lot of options in the state where you live. Check out our new map to compare the size of the largest companies headquartered in every state.

The data included in our map is based on company filings as well as estimates of private company figures from S&P Capital IQ. The numbers come from 2017, the latest year for which information is available. We adjusted the size of each state to reflect annual revenue—the larger the state, the more revenue its largest company generates. We then color-coded each one for easy reference and added the annual revenue figures, creating a unique map of the American economy.
Walmart (headquartered in Arkansas) immediately stands out for obvious reasons: the company brings in $486B in annual revenue, more than twice as much as the second-biggest company, Texas’ ExxonMobil ($226B). Arkansas is also located right in the middle of the country, making Walmart’s dominance seem even more noticeable than other well-known behemoths like Berkshire Hathaway in Nebraska ($224B) or Apple in California ($216B). Of course, Walmart makes its money through its thousands of stores located across the country, but all the revenue is counted in Arkansas because of the location of its home office.

There are several notable trends in our map, too. The Northeast contains quite a few blue states, indicating that the largest companies did not crack $100B in annual revenue. Rhode Island actually takes first place in the region thanks to CVS Health ($178B), surpassing even New York (Verizon, $126B) and Massachusetts (GE, $124B). The Midwest similarly contains a mixed bag of companies. Some are extremely large organizations with household names, like GM in Michigan ($166B) and UnitedHealth Group in Minnesota ($185B), and yet other states have large companies that are nowhere near $100B, including Aegon in Iowa ($38B) and Johnson Controls in Wisconsin ($37B). Perhaps a lesson to be learned is that big companies are often headquartered together in the same states , but the same may not necessarily be true in neighboring states. Think of how many other $100B companies are in California and Texas, for example.

In another region, the Southeast disappoints with not a single company headquartered east of the Mississippi breaking $100B. Look, for example, how small Mississippi appears when compared to Arkansas. When a poultry company (Sanderson Farms) is the state’s largest employer by revenue ($3B), that says a lot about the region’s economy. The Southwest and Northwest similarly contain very few large companies, outside of Texas, California, and Washington (home to Amazon, $136B).

Let’s take a step back and break down the top ten states ranked in order of revenue earned by their largest companies.

1. Arkansas, Walmart, Inc.: $486B

2. Texas, ExxonMobil Corporation: $226B

3. Nebraska, Berkshire Hathaway Inc.: $224B

4. California, Apple Inc.: $216B

5. Minnesota, UnitedHealth Group Incorporated: $185B

6. Rhode Island, CVS Health Corporation: $178B

7. Michigan, General Motors Company: $166B

8. Pennsylvania, AmerisourceBergen Corporation: $147B

9. Washington, Amazon.com, Inc.: $136B

10. New York, Verizon Communications Inc.: $126B

Clearly there are a lot of states without any exceptionally large companies, while there are others like California and Texas with several companies generating hundreds of billions of dollars in annual revenue. Of course we should mention that revenue is a different metric than profit, which is probably a better indicator of a company’s staying power. That being said, however, revenue figures do provide a great way to compare companies in different industries and parts of the country. So if climbing the corporate ladder at a big company is your idea of a great career, we recommend moving to a state where a $100B+ company is headquartered as fast as possible.”

https://howmuch.net/articles/largest-company-in-every-state-2018

#147 Old Ron the Realtor on 03.21.18 at 10:14 am

Oh the dreaded time of year. Tax Day, T- 41 and counting.

Geez bring in a revenue neutral flat tax already. Exempt the first $15k to $20 k for everyone, then set the appropriate % on all other income over that threshold.

Sorry Garth. I realize that the “Tax Avoidance, and Tax Deferment” industries employ a lot of accountants, and even financial planners, but a 10 minute tax return would be a blessing for the rest of us.

Of course it will never happen in my lifetime, so I will put my rant away until next tax season.

#148 mike from mtl on 03.21.18 at 10:24 am

#128 Hamsterwheelie on 03.21.18 at 6:55 am
///////////////////////////////////////////////////////////////////

You’ve got the right gut feeling, DOT NOT proceed. Sounds like useless high MER funds that just waste your time.

Open a self-directed account and take charge!

At 50-100k range you should be fine with ETFs (be aware of trading costs).

As an alternative for small but constant contributions, there is such thing as passive index mutual funds. Those can have very low fees plus can be bought in partial, and often no sales charge.

#149 Mark on 03.21.18 at 10:25 am

“The first few will be well over a million per prototype, perhaps a billion, but that’s not how technology works. Once you get the software figured out the cost to print new copies is zero, you only have to pay for the hardware, which is also pretty cheap these days.”

Sorry, doesn’t work that way. For the same reasons why a 1950s era Cessna airplane design, for example, is closer to a half million dollars per new build, rather than mass replicated for $10-$20k a piece on an assembly line. Like airplanes, a big chunk of the cost of a self-driving car will be product liability, to cover the cost of litigation and settlements that almost certainly will emanate from their failed operation. The first “prototypes” have unit costs in the billions as that’s what many individual companies have invested mostly in the software.

Also, low volume electronics and software built to Mil-Spec standards do not scale down in price anywhere near as much as the stuff produced by the hundreds of billions or for which reliability doesn’t matter. Self-driving car proponents seriously underestimate and misrepresent the costs of their systems. Most currently postulated self-driving vehicles do not even appropriately mechanically or electrically redundancy to facilitate their reasonable acceptance and licensure. Just the cost of having mechanics coddle them to the extent required to keep them reliable and safe will sink self-driving cars.

Anyways, Uber taxi’s run for $3/hour. By the time you net out the extra maintenance costs, and the extreme up-front capital costs (which will *not* fall that significantly for the reasons described above), I just don’t see the economic case. Is it a ‘cute’ problem of engineering and/or computer science to solve? Sure. But who exactly was clamouring for self-driving cars before a bunch of social media-focused companies started ramming the stuff down our throats? Almost nobody. Billions of investment in self-driving cars will likely be written off and/or whatever derivative technologies re-purposed accordingly. A few fancy driving aids will come about (ie: maybe a car that can detect, in software, if an operator is impaired based on their adherence to the rules of the road). But self-driving, nope, not gonna happen to the extent that the proponents are propagandizing that it will.

When you see the “assets” of the central banks rising, that means they are having to print money to balance the deposit-loan equation. Rising asset sheets for central banks means too much debt and not enough deposits.

I’d disagree here, central banks purchase (or sell) assets in order to effect monetary policy. In the case of the Fed, if they didn’t buy those assets, their values would resolve, but resolve at much lower prices. The Fed purchased the assets in lieu of setting negative interest rates for which there is limited evidence of policy efficacy (ie: beneath the zero bound of interest rates, a lot of cash would have drained out of the banking system unproductively). There is also the high probability that the Fed purchased specific assets and blew up its balance sheet to help their ‘friends’ and implement political/economic policy (ie: buying MBS reflated the housing industry, an industry which already suffered severe overcapacity) — a very questionable decision that probably will come back to bite them severely going forward.

#150 Smoking Man on 03.21.18 at 10:40 am

FOMC 2.5 hours away.

Up she goes. Who’s holding real estate?

#151 Blacksheep on 03.21.18 at 10:51 am

Myra # 87,

“Greater Vancouver Housing Stats originally posted by realtor PaulB

March 20 New 279 Sold 142 TI: 8931
March 19 New 307 Sold 120 TI: 8862

March 16 New 158 Sold 117 TI: 8743
March 15 New 154 Sold 127 TI: 8737
March 14 New 231 Sold 140 TI: 8749
March 13 New 277 Sold 159 TI: 8688
March 12 New 327 Sold 139 TI: 8642

March 9 New 139 Sold 91 TI: 8510
March 8 New 196 Sold 118 TI: 8496
March 7 New 204 Sold 99 TI: 8442
March 6 New 246 Sold 130 TI: 8372
March 5 New 316 Sold 104 TI: 8344”
—————————————-
Are these details, not accurate?

It’s about enlightenment, right.

How about some for the Fraser Valley also.

Straight forward info, keep it up..

#152 Musty Basement Dweller on 03.21.18 at 11:13 am

Doug Ford says Ontario should eliminate the foreign buyers tax and let the market take care of everything. LOL. Does he think that before this “go home tax” that the real estate market is an example of a free market? No government influence or intervention? Give me a break Doug.

#153 Alex on 03.21.18 at 11:19 am

Either it was a dream or I can’t find it in the recent posts, but can anyone point me to GT’s post containing general advice including paying less income taxes on your regular payroll and investing the difference instead of waiting for a tax return from CRA without any interest?

Thanks in advance

#154 Hiding on the Backstreets on 03.21.18 at 11:27 am

#134 Igor Lalin on 03.21.18 at 8:27 am

I’m good at science but a total noob when it comes to financial investment. Anybody can recommend a source of relatively unbiased knowledge so I could move away from my wealth management mutual fund company and start investing on my own?
My three little kids depend on this website and you guys…

Cheers
———-

Root through Garth’s posts on here….you might have to do some digging. And Canadian Couch Potato, and Millionaire Teacher (a Canadian overseas who rescues ex-pats who are getting the big shaft from parasitic “investment” peddling fraud artists).

#155 Gravy Train on 03.21.18 at 11:41 am

#107 Ace Goodheart on 03.20.18 at 10:56 pm
“Apparently the old Yeller had consensual sexual relations with a [p]layboy [b]unny and a [p]orn star.
And people are saying this is a bad thing? [emphasis added]”

Um, maybe for Melania—although her divorce lawyer may have told her already that this situation is in fact a good thing for her!

#156 SimplyPut7 on 03.21.18 at 11:42 am

New regulatory requirements for syndicated mortgages!

This was buried on the FSCO website, don’t they think they should warn people what’s coming down the pipeline?

I think a max of 60k a year is way too high for investors that are not accredited (‘designated’ class of investors), but it’s a start. Also, they don’t say how they will enforce that (is it like TFSA or RRSP where the government eventually finds out if you go over the limit?).

————————–

As of July 1, 2018, mortgage brokerages that deal with non-qualified syndicated mortgage transactions will have to comply with expanded requirements.

What is changing?

As of July 1, 2018, mortgage brokerages that deal with non-qualified syndicated mortgage transactions will be required to:

* Collect and document specific information related to a potential investor’s or lender’s financial circumstances, needs and risk tolerance using a new FSCO form.

*Undertake and document a suitability assessment, using specific criteria, for each potential investor or lender using a new FSCO form.

* Collect and document expanded disclosure information using a new FSCO form. This includes information regarding the property appraisal and, in the case where the borrower is not an individual, the borrower’s financial statements.

* Observe a $60,000 limit on non-qualified syndicated mortgage investments over a 12-month period for investors or lenders who are not part of the ‘designated’ class of investors or lenders. The regulation defines the designated class of investors or lenders as those that have already met higher income and asset tests.

* Report written complaints received by the brokerage related to non-qualified syndicated mortgages to FSCO’s Superintendent of Financial Services within 10 business days.

When will the three new FSCO forms be ready?

The three new forms will be available for download from FSCO’s website in June 2018 in advance of the July 1, 2018 implementation date.

http://www.fsco.gov.on.ca/en/mortgage/Pages/smi-amendments.aspx

—————–

‘designated’ class of investors or lenders:

9. A person or entity, other than an individual, who has net assets of at least $5 million as reflected in its most recently-prepared financial statements and who provides written confirmation of this to the brokerage.

10. An individual who, alone or together with his or her spouse, has net assets of at least $5 million and who provides written confirmation of this to the brokerage.

11. An individual who, alone or together with his or her spouse, beneficially owns financial assets (being cash, securities within the meaning of the Securities Act, the cash surrender value of a life insurance contract, a deposit or evidence of a deposit) that have an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1 million and who provides written confirmation of this to the brokerage.

12. An individual whose net income before taxes in each of the two most recent years exceeded $200,000 or whose net income before taxes in each of those years combined with that of his or her spouse in each of those years exceeded $300,000, who has a reasonable expectation of exceeding the same net income or combined net income, as the case may be, in the current year and who provides written confirmation of this to the brokerage.

https://www.ontario.ca/laws/regulation/080188

#157 jess on 03.21.18 at 11:44 am

Washington, D.C. – The executive directors of Public Citizen and Better Markets, two of the nation’s leading organizations protecting investors, called on U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton to reject any proposals that would allow publicly traded companies to force their investors into mandatory arbitration, through obscure clauses in initial public offering (IPO) documents or otherwise. Such action would deprive investors of their right to access the justice system if they are scammed or cheated and would allow companies to pocket their ill-gotten gains, sometimes amounting to hundreds of millions of dollars.

“Corporations have invested a decade in a campaign to convince the SEC to permit them to slip forced arbitration clauses into IPOs, precisely because they know that only a tiny few will pursue cases on their own, before arbiters,” said Robert Weissman, president of Public Citizen.

Forced arbitration clauses, which use fine-print “take-it-or-leave it” agreements to rig the system, have become ubiquitous in modern society. These clauses deprive people of their day in court when they are harmed by violations of the law. Instead, people are forced into industry-biased, secretive arbitration proceedings with little right to appeal if arbitrators ignore the law or facts.”…read more @

https://bettermarkets.com/newsroom/protecting-investors-rip-offs-must-be-priority-sec

=========
the dressors in the window

https://www.vox.com/2018/3/16/17124288/mattis-theranos-board-trump

#158 jess on 03.21.18 at 11:48 am

that is with an “e”

“Today’s decision is another victory for every American trying to save for a safe and secure retirement. The decision will help ensure that millions of Americans will not be swindled out of billions of dollars every year at the hands of financial advisers seeking to boost their profits and bonuses by recommending over-priced, under-performing, and high-risk investments for retirement savers.

https://bettermarkets.com/newsroom/another-win-retirement-savers-fiduciary-rule-scores-another-victory-court

#159 me on 03.21.18 at 11:49 am

Up she goes. Who’s holding real estate?

……………..

and plenty of it. Loving life

#160 bdwy sktrn on 03.21.18 at 11:51 am

#149 Mark on 03.21.18 at 10:25 am….

— a very questionable decision that probably will come back to bite them severely going forward.
—————————————————-
mark your bad ideas don’t need to be topped up with useless, weak minded, stupid parroting of lame buzzwords.

what’s the diff between these two sentences.

1.Mark will surely continue to make a fool of himself.

2.Mark will surely continue to make a fool of himself going forward.

see, no difference in meaning.

just airhead buzzwords spouted by the most vacuous.

poor mark.

#161 Shawn on 03.21.18 at 11:55 am

US small cap leadership is materializing also. Use this rally in bonds to lighten up and get longer US equities. Small caps, tech, biotech, semiconductors, software, etc.

#162 Guy in Calgary on 03.21.18 at 11:55 am

#66 Ronaldo on 03.20.18 at 8:33 pm

What does “sell you a RRSP” mean?

#163 jess on 03.21.18 at 12:02 pm

mcmafia – estimated 15% of the global economy.

https://www.ted.com/talks/misha_glenny_investigates_global_crime_networks

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

#164 Shawn on 03.21.18 at 12:02 pm

The S&P500 is going 20%+ higher between now and the end of the year.

#165 Zapstrap on 03.21.18 at 12:10 pm

Have a grandfathered chequeing account at the green bank and use it mostly to get cash. Still write the odd cheque. Was running low on cheques so went in to order some more. The kid at the till gave me a few options to choose from and then said “that will cost you $50.00.” For one book. I said “huh?” His reply was “well that’s what the printing company charges us, we don’t make anything on them. It’s the same at all the banks now.” Yeah right … I guess that is how you treat a longterm customer now …

#166 bdwy sktrn on 03.21.18 at 12:18 pm

59 me on 03.21.18 at 11:49 am
Up she goes. Who’s holding real estate?

……………..

and plenty of it. Loving life

———————-
ditto here.
recent purchase of land in WA state (2015) has already hit a triple.
joins 2 other triples (2004 and 2007)and a double-triple (6x) on a yvr detached.

yeah, i think we will survive another hike or 2.

#167 Ronaldo on 03.21.18 at 12:21 pm

#127 LivinLarge on 03.21.18 at 6:48 am

Dave, “The Nice Lady At The Bank”.
—————————————————————–
We will soon have to change that since we will no longer be able to refer to her as a lady because we don’t know what she identifies as.

#168 Cottingham a bargain on 03.21.18 at 12:28 pm

Just curious about this but how did the focus on fees in the financial services/ products /sales business become such an obsession with so much media coverage over and over again day in and day out?

I mean no other industry from legal services to RE sales to medical / dental to any other for that matter is so utterly and manically obsessed with fees charged to users and customers

Anyone have an answer ?

#169 Blacksheep on 03.21.18 at 12:34 pm

Howard # 143,

“Premier Horgan at 52% approval, tied with SK Premier for most popular in the country.

Seems people like the direction he is taking on housing.”

http://angusreid.org/premier-approval-march2018/

“Wait. People are just wanting to justify their mistake. Human nature. – Garth”
—————————————————-
They liked Wynne in the beginning too.

Just give Johnny some rope (time), he will do the rest.

http://www.huffingtonpost.ca/2014/09/08/kathleen-wynne-poll-approval-ratings_n_5784476.html

#170 IHCTD9 on 03.21.18 at 12:35 pm

#94 Terry on 03.20.18 at 10:03 pm
#9
“Had my taxes done a couple of days ago. I was anticipating a sizable return, in part because I have two children in university and I could write off their tuition fees. No more said my tax guy, who made me aware that the Liberal government did away with that write off recently. This government has got to go!”

________

Time to get a new tax guy Scooby Doo. Your kids in College or University can deduct tuition fees on their tax return. If they have paid no tax or you have reduced their tax payable to zero then the tuition deduction left over can be claimed by you or your kids can carry forward the deduction to future years. Read all about it below.

https://turbotax.intuit.ca/tips/claiming-a-tuition-amount-from-your-childs-college-5123
_______

Tuition and Education Tax Credit: gone

The new budget also gets rid of other tax credits that give greater benefit to people in higher tax brackets. Starting in September 2017, students and their parents will no longer be able to write off the cost of tuition on their taxes. The $335 million the government has been handing out in these tax credits will instead go toward the new Ontario Student Grant. It will cover the cost of average tuition for students from low-income families, while providing diminishing grants for higher-income families.

“Grants are more effective than tax credits at targeting financial support to students with the greatest needs,” reads the 2016 budget.

As these budget charts show, the size of the grant decreases as family income rises. It’s another shift to the left from the McGuinty era: the 30 per cent tuition rebate he introduced applies equally to well-off and poor families, knocking the same amount off tuition whether the student comes from a $50,000 or $150,000-a-year household

http://www.cbc.ca/news/canada/toronto/ontario-budget-2016-kathleen-wynne-middle-class-low-income-1.3469385

#171 JohnnyBoy on 03.21.18 at 12:36 pm

#150 Smoking Man on 03.21.18 at 10:40 am

FOMC 2.5 hours away.

Up she goes. Who’s holding real estate?
________________________________________
Only the wealthy a$$hole, obviously not you. Besides Duggie just yapped this out. Here comes a new bubble. “I just don’t like the government getting involved,” Ford told the Globe and Mail. “I believe in the market dictating. The market, no matter whether it’s the stock market or anything, it will always take care of itself—supply and demand.”
Where have I heard that before……..”Supply and demand bitches”

#172 JohnnyBoy on 03.21.18 at 12:39 pm

#150 Smoking Man on 03.21.18 at 10:40 am

FOMC 2.5 hours away.
_____________________________
Up she goes , my dog could have guessed that one. Here is the poop. Jerome Powell will attend his first FOMC meeting today as Fed Chairman. He is expected to hike rates and intimate an additional hike is to come. We expect him to state the Fed’s mission is to spur PCE above 2 percent.
Investors and analysts might not want the melt up in financial markets to end. Look for analysts to stoke M&A chatter amid tax cuts.

Investors should avoid financial markets until the dust settles over rate hikes and the Fed’s balance sheet unwind.

#173 Ronaldo on 03.21.18 at 12:40 pm

#162 Guy in Calgary on 03.21.18 at 11:55 am

#66 Ronaldo on 03.20.18 at 8:33 pm

What does “sell you a RRSP” mean?
——————————————————————
We are both well aware of what RRSP’s are. I suppose I could have worded it differently but most people would get it. I believe this is what you are pointing to:

http://www.moneysense.ca/save/retirement/top-21-rrsp-questions-answered/

#174 why Shawn? on 03.21.18 at 12:54 pm

The S&P500 is going 20%+ higher between now and the end of the year.

……………

why so bullish?

#175 Tyler Durden on 03.21.18 at 1:06 pm

‘You’re paying a huge premium to employ some fund manager with a Porsche who thinks he can beat the market. He can’t. And in a crisis a mutual fund company can shut the door and prevent you getting ou’

fees have come down dramatically Garth, we can thank etfs for that. You can get a balanced fund for UNDER 1% mer. It re-balances FOR you. Can set up an auto-monthly buy, no extra charge.

they are not evil, evolving …..

Never put all your money in one asset. Plus do not concentrate on fees only. You hire an advisor for advice. – Garth

The #2 commenter spoke of a balanced fund that automatically re-balances. How is that 1 asset?!
And they spoke of buying a mutual fund. What advisor for advice? Did you just copy paste from your usual talking points Garth?

A balanced fund is still one fund. One asset. One manager. One security. One company behind it. As for advice, investors need it equally with money management. Wise ones seek both. And what’s with the attitude? You are my guest here. (It’s interesting you have used 16 names on this site, so far.) – Garth

#176 Tyler Durden on 03.21.18 at 1:12 pm

Banks are for banking services. Don’t expect investment advice. – Garth

The problem is that calling them banks is as old fashioned as 3% MERs. They’re financial services firms or conglomerates, not banks. They’ve outgrown that name or label decades ago.
It’s not the bank that manages the mutual funds – it’s the asset management arm of the financial services firm. And it’s not the bank that then sells the same mutual fund – it’s the distribution arm of the financial services firm. Just like it’s not the bank that sells insurance but the insurance arm of the overall financial services firm. The “bank” arm only opens deposit accounts, savings accounts, etc., i.e. the banking services you speak of.
Maybe you can help out your readers by informing them of these finer points as well Garth. Selective education is actually worse than ignorance.

#177 Ole Doberman on 03.21.18 at 1:20 pm

Well lets see if this beauty sells in Vancity:

“A 96-year old Vancouver home described as “just needing a little TLC” has been listed for sale for $6.98 million – almost 150 per cent more than what it sold for over two years ago.

The aging 2,372 square foot three-story home in the west-end of downtown Vancouver sold for $2.8 million near the end of 2015. It was reported to have received 11 offers then and sold in two weeks.”

https://www.bnn.ca/anybody-can-ask-anything-check-out-what-6-98m-gets-you-in-vancouver-1.1033580

#178 Smartalox on 03.21.18 at 1:25 pm

@Alex #153:

You need to make an agreement with your investment advisor to make regular investments to your RRSP over the course of the year. Get a copy of your direct deposit transfer info for evidence of this.

and/or

If you have other expenses that can be deducted from your taxable income (child care costs, medical bills not reimbursed, charitable donations, or court-ordered spousal or support payments) gather evidence of those, too.

It helps to have a good budget: If you know that you’re giving $50 per month to the United Way, for example, then you can get that deduction up front.

Fill out for T1213 available on the CRA website.

List all the deductions in the spaces provided. Sign it.

Mail the completed form, along with COPIES of the receipts etc. that you’re using as evidence to your local CRA office.

You have to renew this every year. You can send all this in at any time, but given how buys the CRA is at tax time, I usually do mine in October, when they’re slack, and so that they have plenty of time to process the paperwork before Jan 1st.

The CRA will send you a letter detailing how much tax you’ll owe for the year. Give this to your company’s payroll clerk, and they’ll modify your file to deduct less tax.

Get more cash flow.

Invest.

Revel in the fact that you’re depriving the government(s) of funding for programs that you don’t agree with.

You’ll still have to file a tax return, and if your deductions turn out to be less than what you stated, you’ll have a balance owing. But my experience has been that there are usually a few extra deductions that either cover the difference, or leave a small surplus.

Good luck,

#179 isuckless on 03.21.18 at 1:38 pm

“A 96-year old Vancouver home described as “just needing a little TLC”

I think that they misspelled TNT

#180 Alex on 03.21.18 at 1:42 pm

@Smartalox #178:

Thank you

Unfortunately (or fortunately!) we don’t have many deductible expenses other than childcare but I’ll definitely check out the T1213 form.

Alex

#181 Smartalox on 03.21.18 at 1:42 pm

Attention Ontario Voters:

Think of DoFo as your version of BCs Christy Clark:

A populist leader not previously elected to the house, with ‘free market’ overtones, but scant real experience, and backed by a shadowy clique of insiders eager to get their hands on all sorts of government funded operations.

Have a look at BC’s experience very closely, especially those scandals related to: insider dealing, money laundering at the provincially licensed casinos, with ties to gangs, drugs – fentanyl, and real estate, plus whatever else emerges.

The similarities are there, it looks like both teams are copying from the same playbook!

This could be you circa 2022.

#182 bill on 03.21.18 at 1:54 pm

#39 Penny Henny on 03.20.18 at 6:44 pm
only for folks with audis….if you have an inny -no sweat.

#183 Ian on 03.21.18 at 2:21 pm

Fed raises, and says three in 2018

Fed: ‘economy gathering strength’

Interesting, given Q1 GDP growth has been revised from 5.4%, to 2.5%, to 1.9%…

I think there’s a possibility this is the last raise of the year if things get really bad. If there’s stock market damage and slowing GDP before June, all bets are off on more rises.

#184 Guy in Calgary on 03.21.18 at 2:24 pm

#173 Ronaldo on 03.21.18 at 12:40 pm
#162 Guy in Calgary on 03.21.18 at 11:55 am

#66 Ronaldo on 03.20.18 at 8:33 pm

What does “sell you a RRSP” mean?
——————————————————————
We are both well aware of what RRSP’s are. I suppose I could have worded it differently but most people would get it. I believe this is what you are pointing to:
—————————————————————–

I was just poking fun at the wording. You don’t “buy an RSP,” you buy the investment in the RSP.

#185 Ian on 03.21.18 at 2:26 pm

USD plunging post Fed:

https://www.theice.com/products/194/US-Dollar-Index-Futures/data

#186 AGuyInVancouver on 03.21.18 at 2:33 pm

77 Ole Doberman on 03.21.18 at 1:20 pm
Well lets see if this beauty sells in Vancity:

“A 96-year old Vancouver home described as “just needing a little TLC” has been listed for sale for $6.98 million – almost 150 per cent more than what it sold for over two years ago.

The aging 2,372 square foot three-story home in the west-end of downtown Vancouver sold for $2.8 million near the end of 2015. It was reported to have received 11 offers then and sold in two weeks.”

https://www.bnn.ca/anybody-can-ask-anything-check-out-what-6-98m-gets-you-in-vancouver-1.1033580
_ _ _
Thanks to the blatantly pro-developer policy fo the current Vision Vancouver government, the West End is the wild west of construction these days. That house is doubtless priced with that in mind, being assembled into a highrise site with adjacent buildings. Indeed, the article you quote shows the 40 story Empire Landmark hotel in the background which is itself being torn down for condos despite being in fine shape. Likewise the West End is littered with boarded up three story walk-ups that are being fed into the real estate chipper. That is why Garth’s advice to rent rings hollow with many Vancouverites, the rental supply is decreasing, prices are high and protection for renters is very weak.

#187 professor_of_economics on 03.21.18 at 2:37 pm

buy low, sell high …
and for those who didn’t take that advice, cheer up, there is lots of big spending promises for mental health care from the manlady holding Ontario’s credit card.

#188 Terry on 03.21.18 at 2:44 pm

#170, #94 & #9, Tuition deductions, this should clear it all up.

“Ontario: In its 2016 budget, the Ontario government announced that it would be eliminating both the Ontario tuition and education tax credits in 2017. Effective for 2017, Ontario students will be able to claim the provincial tuition tax credit for eligible tuition paid in respect of studies up to and including September 4, 2017, and will be able to claim the education tax credit for months of study before September 2017. The eligible portion of 2017 tax credits will continue to be transferable to a qualifying family member. Note, however, only tax filers who are resident in Ontario on December 31, 2017, and who have unused Ontario tuition and education tax credits available for carry-forward, will be permitted to claim the credits in future years.”

See link below for the full explanation.

https://www.bdo.ca/en-ca/insights/tax/tax-articles/recent-tax-credit-changes-may-affect-students-for-2017/

#189 Blacksheep on 03.21.18 at 3:02 pm

Smart # 181,

“Attention Ontario Voters:”

“Think of DoFo as your version of BCs Christy Clark:
A populist leader not previously elected to the house, with ‘free market’ overtones, but scant real experience, and backed by a shadowy clique of insiders eager to get their hands on all sorts of government funded operations.”

“Have a look at BC’s experience very closely, especially those scandals related to: insider dealing, money laundering at the provincially licensed casinos, with ties to gangs, drugs – fentanyl, and real estate, plus whatever else emerges.”

“The similarities are there, it looks like both teams are copying from the same playbook!”

“This could be you circa 2022.”
————————————————-
Lets be honest, any one with some brains and balls, thrived under Clark.

Pro business. Pro investment. Pro capitalism. Pro free markets.

But If your scared of your own shadow and expect shit for free from the gov, after it’s taxed away from others?

Do not vote for Doug Ford.

You will be left behind like the whiners that (accidentally elected) Horgan, that have yet to figure out, there is no free ride…

#190 Stan Brooks on 03.21.18 at 3:03 pm

Another good news, after the pause in the decline of the loonie (let’s hope it reverses trend and Poloz keeps his mouth shut) and the good news on NAFTA progress (I am pleased, still to be convinced, but hopeful):

Finally Service Canada addresses the elephant in the room and the biggest problem of our life time, the most important topic, second only to T2’s daily choice of socks.

Service Canada moves away from calling Canadians Mr., Mrs., or Ms.

https://ca.news.yahoo.com/canada-moves-away-calling-canadians-123821114.html


“It is important that Service Canada, as an organization, reflects Canada’s diverse population and ensures that the views and interests of Canadians are taken into account when we develop policies, programs, services and initiatives,” says the directive.

The new guidelines also rule out using terms such as mother and father because they are “gender specific” and say the neutral word “parent” should be used instead.

The same goes for honorifics such as Mr., Mrs., and Ms., and in both languages. Instead, employees are being directed to address customers by their full names or ask them what they want to be called.

How does:
‘Zer Honorable doodle sack winklepickers’ sound for a call?

#191 Nemesis on 03.21.18 at 3:13 pm

“Wait. People are just wanting to justify their mistake. Human nature.” – LouisAuGarteXVI

#HumanNature,ErrorsOfOmission… #&TheVisibleExternalitiesOfColonization,Or… #TheNewPauperage

[MacLeans] – Vancouver real estate is so crazy construction workers have to live under Skytrain tracks

“Vancouver’s real estate circus is driving even decently paid tradespeople to live in illegal encampments. So far, the city is turning a blind eye.”

http://www.macleans.ca/economy/realestateeconomy/vancouver-real-estate-is-so-crazy-construction-workers-have-to-live-under-skytrain-tracks/#

#192 James on 03.21.18 at 3:18 pm

Just saw this on the video prompt when flying back into town today. Had to laugh at Trumps new Lawyer Joseph E. di Genova March 6, 1997 12:01 a.m. ET and I quote “Nobody should underestimate the upheaval that a prosecution of the president would cause. But we went through it once before, in Watergate, and survived. The nation, in fact, could conceivably benefit from the indictment of a president. It would teach the valuable civics lesson that no one is above the law”. So now he is a full 180 on this as a Trump Lawyer. Now I know why I detest Lawyers so much.

https://www.wsj.com/articles/SB857599712755925500

#193 Alistair McLaughlin on 03.21.18 at 3:37 pm

Smartalox, you are probably right. But what choice do we have? The status quo is a disaster, and the big-spending NDP are a non-starter.

#194 Keith on 03.21.18 at 3:39 pm

@ # 168 Cottingham

Fees are a focus because with the slow demise of defined benefit pension plans, a majority of the population will need to make their own pension going forward. This is a new reality that did not exist until relatively recently.

Canadians pay very high prices for too many things, cell phone being a good example. Until recently the average Canadian was spending 2.5 percent on fees in their retirement savings accounts.

So consider a couple approaching retirement, with a paid for home and 500,000 in their retirement investments returning a balanced 6% net of fees. Their return on investment is $30,000 the fees they pay are $12,500. Per year, every year, increasing over time. So on their income of 100,000 this is going to be a huge budget item, not one that they knew about for a long time because unil recently fees were not usually disclosed.

So if you are an advisor, with a large book of clients with this kind of money, in exchange for a few hours of meetings and administration, you and your company are making out like bandits.

If the couple moves to an advisor that can do it for 1% in fees, they will save $7500 per year, their advisor will still make a decent amount of money, and $7500 per year that stays in the investment fund compounded over a 25 to thirty year retirement adds up to a very serious amount of money.

With your money, you have to be educated even with a great advisor. Investment choices matter, return matters, risk matters, fees and costs matter. Too many Canadians are overpaying for financial advice, our blog host is one of the solutions.

#195 James on 03.21.18 at 3:55 pm

#190 Stan Brooks on 03.21.18 at 3:03 pm

Another good news, after the pause in the decline of the loonie (let’s hope it reverses trend and Poloz keeps his mouth shut) and the good news on NAFTA progress (I am pleased, still to be convinced, but hopeful):

Finally Service Canada addresses the elephant in the room and the biggest problem of our life time, the most important topic, second only to T2’s daily choice of socks.

Service Canada moves away from calling Canadians Mr., Mrs., or Ms.

https://ca.news.yahoo.com/canada-moves-away-calling-canadians-123821114.html

“It is important that Service Canada, as an organization, reflects Canada’s diverse population and ensures that the views and interests of Canadians are taken into account when we develop policies, programs, services and initiatives,” says the directive.

The new guidelines also rule out using terms such as mother and father because they are “gender specific” and say the neutral word “parent” should be used instead.

The same goes for honorifics such as Mr., Mrs., and Ms., and in both languages. Instead, employees are being directed to address customers by their full names or ask them what they want to be called.

How does:
‘Zer Honorable doodle sack winklepickers’ sound for a call?
___________________________________________
WTF?

OK then, ein Führer.

There I said it, I surmise anything goes then?

#196 waiting on the westcoast on 03.21.18 at 4:12 pm

160 bdwy sktrn on 03.21.18 at 11:51 am says…
“#149 Mark on 03.21.18 at 10:25 am….
— a very questionable decision that probably will come back to bite them severely going forward.
—————————————————-
mark your bad ideas don’t need to be topped up with useless, weak minded, stupid parroting of lame buzzwords.
what’s the diff between these two sentences.
1.Mark will surely continue to make a fool of himself.
2.Mark will surely continue to make a fool of himself going forward.
see, no difference in meaning.
just airhead buzzwords spouted by the most vacuous.
poor mark.”

Normally, I would call you out on an ad hominem attack but in Mark’s case, it’s an honest assessment.

Mark – you never answered my rebuttal to your 2013 arguments… Please quit telling people here that 2013 was the peak.

Also – your argument on aircraft prices is a erroneous. The aircraft of today are more highly regulated, have more capability, and are made of far superior materials.

If you look to the aircraft segment in Europe, it is far more robust and much better quality at lower price points but are being held out of North America due to government regulations.

Price points for sensor hardware in cars like LIDAR and vision systems have dropped radically in the past 10 years.

Look at solar hardware and install costs to get an idea of how quickly price points can drop as economies of scale kick in…

#197 SimplyPut7 on 03.21.18 at 4:16 pm

The Fed now sees a total of eight quarter-point hikes in the fed-funds rate through the end of 2020. That includes:
* three increases this year, including Wednesday’s move
* three in 2019
* two in 2020

By the end of 2020 rates would end up near 3.4%.

https://www.marketwatch.com/story/fed-lifts-rates-in-powells-first-meeting-says-outlook-has-strengthened-2018-03-21

——————-

How long do we pretend in Canada that interest rates are going to stay low forever? I would think Poloz would have to raise rates by half this amount on top of the 2 he is already behind on.

Or else the Canadian dollar will fall to the low 60s compared to the US dollar, making everything we import expensive. Seems like a very big sacrifice for all of Canada to pay to save a few people in Toronto and Vancouver from realizing they are not richer than they think.

#198 gb on 03.21.18 at 4:24 pm

When you say [email protected]….are you including Nesbitt Burns or Scotiamcleod?

Direct question I know but am curious if these offshoots are basically the same things in your estimation?

#199 Tony on 03.21.18 at 4:26 pm

Re: #185 Ian on 03.21.18 at 2:26 pm

Goldman’s 4 or 5 interest rate increases this year prediction tanked it. Always do the opposite of anything Goldman states.

GS said 4. The Fed confirms 3. Not so far off. – Garth

#200 jess on 03.21.18 at 4:32 pm

The former head of the American Nazi Party ran for the Republican nomination of Congress in Illinois’ 3rd Congressional District. No Republican stepped up to oppose him.

On Tuesday, despite his vocal Holocaust denial, his anti-Semitic rhetoric, and his white supremacist views, 20,339 Illinois Republicans, according to preliminary totals, cast their ballots for Arthur Jones.

The chairman of Illinois Republican Party even disavowed him, saying “The Illinois Republican Party and our country have no place for Nazis like Arthur Jones. We strongly oppose his racist views and his candidacy for any public office, including the 3rd Congressional District.”

Jones will face incumbent Democratic Congressman Daniel Lipinski, a social conservative, who narrowly won renomination on Tuesday.

https://www.youtube.com/watch?v=2Ni8oFtgoAI

#201 Ross Macintosh on 03.21.18 at 6:00 pm

#45 Condor on 03.20.18 at 7:01pm

“I hear a lot about “never” buy mutual funds. However I have been a holder of Mawer funds for years… MERS are reasonable… I don’t mind paying a little more for some active management and many of their funds consistently beat the index year after year”. — Condor

Your comment sparked my curiosity about Mawer’s MERs so I went to their site to review. Looking at their equity funds I see their U.S. Equity Fund (MAW108) has the lowest MER of any of their equity funds at 1.16%. For comparison the expense ratio on Vanguard Canada’s VFV.TO S&P 500 ETF, that has had very similar returns, is just 0.08%. That difference is significant! Using an on-line expense ratio calculator I determined that for a $50,000 investments held for 5-years with the market return of 19.35%, the higher expense ratio would have cost the Mawer holder $5,365.67 more than the Vanguard holder. Given the performance of the two investments (VFV.TO 5-yr return=19.35%. Mawer MAW108 5-yr return=19.4%) was very close, it is hard to justify paying $5,365.67 more. I’ll continue to hold the Vanguard ETF bought without commission in my Questrade TFSA. I will need to pay Questrade a commission on their sale of 1-cent per share to a maximum of $9.95. Not a bad deal.

#202 Hamsterwheelie on 03.21.18 at 8:46 pm

#148 mike from mtl – thanks!!

#203 Oakville Stinks on 03.21.18 at 10:41 pm

Mongo House and Sigmahouse are showing Oakville has gone DOWN DOWN DOWN 30% on average!

That means prices are back down to 2016 levels and dropping.

#204 buttercup on 03.22.18 at 5:24 am

#5 Van man on 03.20.18 at 5:24 pm
Any advice on where to go to pay less than 1% in fees? The lady and I just laid down $$K in TFSA with big Canadian Bank and MER fees were anywhere from 1.18% for Index Fund to 2.6% for Mutual Fund. ”

Qtrade.ca is an online Vanc-based discount broker I use, rated #1 by Globe and Mail. Beware–Specific forms are required to transfer assets or funds between the different institution’s TFSA and Other registered accounts. Don’t withdraw any of it yourself!!

Bonus—Qtrade.ca are currently covering up to $150 in transfer fees if you transfer $15k or more.

Some 100 ETFs and all MF’s trade free. Equity/ETF trades cost <$9. Tip…You can buy US$ securities in their CAD TFSA or RRSP to avoid the fees for also keeping the USD denominationed type. You cannot hold USCash in them. Foreign currency exchange conversion fee is very good at .75, and you can 'wash' fx trades on same date. Their support people are great too.

Remember you will need to weigh any potential fees before disposing any of your current Bank holdings…

Qtrade has an investor education section. The Canadian Couch Potato and Morningstar are other good learning resources, along with the Greater Fool blog of course! ;)

I would say buying a CAD-hedged ETF like XSP could be a very bad choice, if you believe the loonie goes down vs. USD from here. And as always, Beware free advise!

#205 Keith in Rio on 03.22.18 at 10:26 am

There are no rate hikes “of consequence” coming soon folks.

A quarter percent or half a percent here, one percent there eventually, up and down again, is irrelevant.

If there was “real” rate increases coming, there’d have been no need for the B20 tests……..the gubmint knows it’s hands are tied, and it’s boxed into a corner, and cannot let the bank raise rates.

It would prefer to sacrifice the dollar, because there are more benefits to them in doing so, than laying waste to the indebted populace just before an election.

Even Ray Charles could see that coming. How much do you guys get paid for financial advice again ??????

The government does not set interest rate policy. Surely you understand that. – Garth

#206 Shawn on 03.22.18 at 1:47 pm

http://business.financialpost.com/investing/canadian-stocks-look-cheap-until-you-factor-in-record-debt/amp