Wanting

“Great job with your blog,” writes Jay. “I think of you as the Meredith Whitney of the North.”

Really? Her best-before date was 2007, when Meredith forecast the coming crash. Then she blew herself up, and took a hedge fund with her. Guts everywhere. So I’m not sure that’s a sufficient suck-up, Jay. But do continue.

“I’m an avid reader and longtime believer in a balanced and tax-efficient approach to investing.  I’m currently intrigued by your arguments about the disadvantages of being in a corp, but our accountant has assured us, this is the best path forward.  Here’s the situation:

1.  Wife (veterinarian) started a corp roughly 8 years ago.
2.  She works part-time, grossing 50-60k per year (no, vets do not make a lot of money regardless of how much you feel you paid for Bandit’s broken leg).
3.  Pays herself in dividends
4.  Has roughly 120k in retained earnings that are fully invested (ETF’s)

Considering how little she makes per year relative to the costs of maintaining the corp, I’ve asked our accountant about unwinding it and becoming a sole proprietor.  He says we’ll be dinged roughly 20k (I’m assuming on the taxes from the retained earnings).  Can you please explain what would be required to unwind the corp to a sole prop. and the consequences of doing so?

The accountant is wrong, but understandable since he’s collecting annual fees filing a T2 return. But, seriously, with a gross business income of less than sixty grand per year there’s no reason to be dragging around a corporate entity. Similarly, by taking only dividends your wife is saving no tax and earning no RRSP room. Since she has no pension this is a bad idea.

As for the ‘extra tax’ your guy is hanging over your head, it sounds like the cost of getting assets out of the corporation and into her hands – which could be mitigated by using RRSP room (assuming she has some). The tax is also inescapable. It’ll be due whenever the funds are removed – and there’s no reason to believe rates will be lower in the future.

How to wind up the corp? She must apply to the province, accompanying that with an up-to-date tax return. If all is in order, Articles of Dissolution will be granted. That’s when your lawyer enters the scene to ensure a proper winding-up. She also has to provide the HST people with a request to cancel the sales tax regime.

In many ways, ending is harder than beginning. Yes, being a sole prop is so much easier, cheaper and flies way below the CRA radar. Personally I think vets are grossly underpaid. Let’s socialize the industry, giving free health care to all animals. Then vets can make $450,000 and cats can go on a two-year waiting list.

Now here’s Arthur, also with a wife problem. But this one’s bad.

Mandatory SU: “First off, just have to say I have been reading for a couple years now and make it a very satisfying part of my evening routine every day. Keep up the good work of educating the masses.”

His story:

“I have taken your advice on financial diversification as best I can and trying to be happy with the home I am in without overextending myself.  I have saved for a rainy day (20k in ‘cash’ at orange online bank in TFSA), started saving for my kid’s education with a family plan opened with the green banks e-series lines (37k), and have been putting 5500/year in TFSA spread out across e-series lines for myself and my wife currently sitting at about 38k each.  I have started putting cash into my RRSP in the same style the last few years as my income is in the 125k-150k range with my wife not currently working, the RRSP is sitting at around 68k right now.  For emergencies I have a 25k unsecured LOC set up which has been sat idle for years.  I currently own a home in SW Ontario worth approx. 230k of which I owe 75k.  This mortgage is slated to be done in 66 months, with payments set up so that at end of the term the mortgage will be kaput.  We have no other debts or commitments and try to live a fairly frugal life.

I’m certain you can guess the reason I am writing you, I am looking for some advice on purchasing a new home.  I am 35, 2 kids, stay at home wife and a professional certification that will make me hirable anywhere in the country (Second Class Power Engineer).  I have a pitiful net worth as I worked at a retail place until 26 and went back to school to be hired at a real job when I was 29. My wife is looking at houses, new houses, expensive houses. The places she is most interested in is a sleepy little town surrounded by petro chemical facilities. And new houses are selling for 500k.  Knowing what you know is this a smart move with rising rates?  We have been entertaining idea of keeping the house we own and renting to my mother for 1k/month, the price she currently pays for a much worse place in a worse part of town, is this a smart move?

Also, with the situation I am in, would it make sense to have professional management of the money I currently have?

Appreciate any advice you can give,  everyone around me says to just jump in the deep end of the pool, that I would never regret buying new real estate, etc etc.  Of course the rapid rise in real estate prices in the area has made me look like a fool for staying in a modest place despite a comparably large income.

To recap: you live in an okay home with minimal financing on it. You’ve finally landed a good job after a struggle. You just started to seriously save and invest. You now support three other people. You’re only 35. Your spouse earns nothing, yet is pushing to buy a house more than twice as expensive as the one you have now, plunging the family into debt.

What’s wrong with this picture?

You have liquid assets of about $200,000 and another $155,000 in equity. Net worth is $355,000. Not bad for an uneducated guy who was flogging stuff in a store nine years ago.

To purchase a $500,000 house would require a down payment equal to half your current liquid assets. In other words, the day you pick up the keys (with mom renting your old house) you’ll have less than $100,000, and debt of more than $400,000. How, exactly, does this help your family? Prepare you for retirement? Help pay for the kids’ education? Protect your family if you get sick, laid off, burned out or punted?

It doesn’t. And chances are you’ll never get mom out of that old property, trapping your equity. No balance, no diversity, no liquidity. You are not the fool, Arthur. Instead, a hero.

But you knew this, right? Man up. Show her this blog. Then duck.

125 comments ↓

#1 Toronto Real Estate Update on 08.13.18 at 5:56 pm

TRUE OR FALSE (searching for a grain of truth in the unsubstantiated claims of Canadian housing/lending “experts”)

“Increased immigration in Canada will guarantee stronger demand for residential real estate year after year.

Canada has discovered that all it needs to do to provide a sudden and significant boost to residential property sales across the country is to turn up the immigration dial.

The whole thing works because all new immigrants immediately buy properties upon arrival in Canada.

Property sales began to slump a bit in 2017 in the GTA prompting policy makers to turn up the immigration dial.

As a result detached home sales in the GTA have taken off in 2018. 2018’s huge sales numbers make 2016’s record-breaking sales levels look weak.

It’s so different here in Canada. With our golden immigration dial our housing market and economy will always be on an upward trajectory.

And the only reason that policy makers don’t use immigration to double Canada’s population every year is that they know it would cause too much demand for real estate in our country. And they wouldn’t want our economy to become too hot.

Unfortunately the Americans hadn’t figured this out in 2006-08. If they had there would have been no American housing correction, no bank failures and no worldwide Great Recession.”

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

If sales of detached homes in Toronto “took off” in 2018 and are “breaking records set in 2016” as a result of increased immigration then the Toronto R/E board’s numbers would definitely show it.

GTA detached home sales:
(2018 compared to 2016)

January…. – 21%
February…. – 40%
March…. – 37%
April…. – 43%
May…. – 49%
June…. – 43%
July…. – 34%
(Source: Toronto’s R/E board)

It’s true that Canada’s population growth (mostly due to immigration) has broken records over the past 2 years.

However, this has not translated into record-breaking housing sales numbers in the GTA.

In fact, the numbers above show that sales of detached homes in the GTA in 2018 have been a lot lower than in 2016.

This demonstrates how increased immigration does not fix the underlying demand problems created by the bubble inflation part of the housing bubble boom-bust cycle.

#2 Alex from Edmonton on 08.13.18 at 6:02 pm

Your post yesterday reminded me of my aunt, who was sure that since all the boomers are going to retire at the same time, them selling their investments during retirement will create a massive decades-long bear market. She said this as justification for going into enormous mortgage debt in her 60s on property in Langley.

I remember wondering why she thought boomers having to sell their houses when they retire (as they have few other assets) wouldn’t have the same effect on real estate. Regardless, do you think this boomer-retirement-driven-bear-market hypothesis holds any water?

#3 alex k on 08.13.18 at 6:18 pm

Most immigrants come to this country with nothing,
enough said

#4 Samuel on 08.13.18 at 6:27 pm

Does anyone else just cringe when they read one of these stories and you just know that Garth will blow them full of holes at the end?

#5 Avr. Joe from Vancouver on 08.13.18 at 6:31 pm

Yes!!! My picture from English Bay in Vancouver have been posted on this super duper blog

#6 lawnboy on 08.13.18 at 6:33 pm

Aurthur is thinking of breaking the number one rule.

“ Don’t break in to jail!!!” And for gosh sakes, don’t drag the family with you.

LB

#7 Boomer sell-off on 08.13.18 at 6:40 pm

#2 Alex
Regardless, do you think this boomer-retirement-driven-bear-market hypothesis holds any water?

Depends on population growth, but I doubt poor immigrants can afford rich boomer’s real estate?

And when it comes tumbling down, it will be the suburbs that are hit the hardest.

So yeah, don’t get caught holding Langley property when the crash happens. I would rather hold something down-town Vancouver. That will either hold its value, or regain it quite quickly: there is only so much of down town estate to go around. The supply of Langley town homes is pretty much endless, if need be.

#8 mike on 08.13.18 at 6:48 pm

May want to keep corp structure to preserve limited liability if its deemed worthwhile.

LL is a myth. – Garth

#9 Smartalox on 08.13.18 at 6:52 pm

Arthur:

If the kids are old enough to be in school, then your wife probably has too much time on her hands. If your income manages to cover all your household bills, then any income that she makes – even part time – can boost your savings to the point that you’ll be able to afford that house that she wants for both of you.

Once the two of you have accomplished that mission, she can go back to being ‘retired’ while you keep working.

Also, spending 5 years or so building a nest egg that will grow through compound interest for 20 or so years is a LOT more effective than waiting 20 years until the house is paid off, before starting to save for retirement, kids’ educations, etc.

One other benefit: she’ll have some recent work experience in case something happens to you, and you have to stop working for a while. It happens.

#10 MF on 08.13.18 at 6:57 pm

$355,000.00 net worth is “pitiful” to this guy? He’s doing well. What’s the problem?

MF

#11 ImGonnaBeSick on 08.13.18 at 6:58 pm

The boomer retirement bear market makes me chuckle.. so going from saving (for retirement) to spending (in retirement) is going to have a negative affect on markets? What do you think these stock tickers represent? What do you think companies do? Just because they’re liquidating their positions in the market doesn’t mean they’re not spending their money on goods and services… Earnings drives valuations… Unless you’re Amazon…

#12 Izzy Bedibida on 08.13.18 at 7:08 pm

Showed blog to wife at the time she had wild house lust. She loved the idea of a house more than the idea of being married. Good thing I had a prenup before I married her.
She immediately filed for divorce. Divorce was quick and easy. Be prepared for a divorce or several long years of anguish. After my divorce…exwife admitted that owning a a house is hard and expensive

#13 MGTOW on 08.13.18 at 7:12 pm

The most important financial decision you will ever make is who you marry. The right woman (or man for the ladies) can be an incredible partner and help grow the family assets. The wrong woman (or man) will financially ruin you. Nothing Garth can advise you on can change that fact.

Divorce is normally the worst financial risk you face in life. It’s worse than a market crash, a housing bubble, a job loss, pretty much anything besides death itself. And that’s usually the case for both spouses. We’ve all heard lots of stories of men getting taken to the cleaners, and they do, but being a single mom having to run a second household on the spoils is no easy task. Divorce is a surefire way to set your retirement age back well until after you are getting OAS. Only rich people can afford to divorce. Tiger Woods divorce cost him $100 million, but that still leaves him with a cool $740 million for himself. He’ll be ok. For most people, that’s not the case. The cost of running 2 households is crippling. So if you and your girlfriend (or boyfriend) fight a lot, move on. It won’t get better. If they have a wandering eye, dump them. If their parents or friends have a history of divorce, be very wary. And if the person themselves is already divorced they probably aren’t worth the risk. Besides, why would you want to be raising someone else’s kids?

But the second way your spouse can ruin you is more discrete. Unrealistic expectations, spendthrifty ways, and/or a poor work ethic. One of the situations that comes up on this blog all the time is that one spouse wants more house. When that spouse isn’t working, I find that proposition absurd. Why on earth should it be your responsibility to fulfill their dreams? Nope, it’s not. Sure, sometimes it is the right decision for one spouse to stay home with the children for a period of time, and each circumstance is different, but people need to live within their means. If your spouse won’t, you are headed for ruin.

Therefore, the moral of the story is “don’t marry a stranger”. Make sure you have dated long enough to know everything there is to know about your potential spouse. Their education, work & family history, agreeableness, morals, values, plans, desires, and most importantly who they expect to pay for it. If they have any non-negotiable lifestyle expectations you need to know what they are. Lazy women with high expectations will dump you in a minute if they aren’t getting what they want. Lazy men will neglect their responsibilities and play video games until they get dumped. Don’t fall for it. You’ll be sorry.

The worst assumption you can make is to assume everybody holds the same values as you do. They don’t. It’s an easy mistake to make, even a thief assumes everybody steals despite the fact that most crimes are committed by a small percentage of the population and repeat offenders are a small percentage of that population. You don’t have to hang around the playground too long to find out that it just isn’t true, the kids aren’t all alike and most of them aren’t alright. Just hang around the playground and find out for yourself. (Playground = any situation in which people are likely to show their true nature. For kids it’s an actual playground, for adults there are many situations. Don’t let your marriage be when you find out.)

#14 TRUMP on 08.13.18 at 7:22 pm

SARNIA ???

#15 Linda on 08.13.18 at 7:24 pm

Wants vs needs at work. My thought is if the wife wants fancy new digs, she can get a job & pony up half the cost. Does she want it enough to do that? If not, dial it back, honey. Think creatively – can a renovation be done for a reasonable cost that would get you the fancy stuff you yearn for? As for the sleepy little town, it might be charming but living near petrochemical plants has its drawbacks. Might not be the best move from a health perspective.

#16 Wallflower on 08.13.18 at 7:29 pm

pic breaks my heart
soooooooooooooooooo Portugal

#17 Andrewski on 08.13.18 at 7:38 pm

Does this article help anyone?

https://www.bankrate.com/mortgages/4-signs-youre-paying-too-much-for-that-house/

#18 DQ on 08.13.18 at 7:45 pm

#16 Wallflower

That picture is of the backside of the Cactus Club Café in Vancouver on Sunset Beach at the corner of Davie & Denman.

Quite literally half a world away from Portugal.

#19 crowdedelevatorfartz on 08.13.18 at 7:52 pm

@#149 Wrk.dvr

Interesting insights.
I once saw a tv show that highlighted “clusters” of centagenarians all over the world.
Japan had villages of many people over 100 years of age.
Kazakstan, same thing.
and southern Nova Scotia…..

All the people had similar lives.
They lived simply.
The worked at physical labour daily ( cutting wood, walking, etc.)
They didnt travel very far.
A high percentage were religious.

I believe the Nova Scotia area was around Yarmouth but I could be mistaken.
They highlighted one lady who was 104 and still drove her car to church and also taught piano lessons…..

Nothing wrong with living a simple life.

#20 crowdedelevatorfartz on 08.13.18 at 8:02 pm

@#15 Linda
” if the wife wants fancy new digs, she can get a job & pony up half the cost…..”
+++++
Total agreement.
I have a friend who was renting, 25 years ago, he wanted to buy 1/2 a duplex in Burnaby.
He spent months looking for a great deal.
Found one.
$115k and his “stay at home wife” said, “No, I’m not moving.”

He came to me and asked my opinion, ( Bad idea)
“When she’s contributing to the finances of the family THEN she can have an opinion on what YOU want to buy…”

So. He knuckled under and they have spent the last 25+ years renting( $100k? $150k?) while that Duplex went from 115k to almost $800k.
They could have retired and moved back into a …rental

However
Buying now?
In this market?
Insanity.
Wait a year at least…or better yet…. 2.

#21 Tony on 08.13.18 at 8:16 pm

DELETED

#22 Grey Dog on 08.13.18 at 8:19 pm

14. Trump
As I was reading this, I was thinking SARNIA too! Authur please do NOT move your family to that toxic soup of a place, ask around, I have heard of too many seniors that lived there for a lifetime dying an early death, or children conceived there being born…not quite right, physical abnormalities undiagnosed at Sick Kids cause: Sarnia…well those are my personal insights for what they are worth.

Bottom Line: your wife needs a job, or volunteer at a spot where she can realizes she is as lucky as she is.

#23 Dolce Vita on 08.13.18 at 8:27 pm

Rock and a hard spot with NAFTA if you listen to Rona Ambrose today.

We are next in line after Trump is done with Mexico (apparently he wants their auto wages to rise – music to the ears of their Union friendly newly minted President). So much for Canada Mexico solidarity vs. the Americans. Cut and run is more like it and of course, predictable. Shows how naive Trudeau and Freeland were – babes in the wood at the helm.

Ambrose believes Trump is serious and will duty car exports to the US from Canada if he does not get his way. She seemed flustered when she said this which is out of character for the personable, well spoken and level headed Ambrose.

She mentioned Dairy, Auto, Sunshine Clause, Dispute Panel as contentious negotiation points. It may well come down to selling out PQ and its Dairy or ON and its Auto to give Trump something to brag about at MAGA rally’s.

Poor Liberals. Lose either Province and out the door you go as Government. If I were Justin, I’d call an election now before NAFTA is concluded, if it is at all.

I dunno GARTH.

No way do I see Canada winning in NAFTA with an adamant, bullying, actually does what he says, Trump (the @real Trump).

#24 Wallflower on 08.13.18 at 8:29 pm

yes DQ
think you missed my point
this is a typical event in Portugal; very common
dogs wander homeless and ownerless, starving

#25 Grey Dog on 08.13.18 at 8:31 pm

Secret to a successful life being happy and content with what you have:

Find frugal friends…in hindsight I realize what a gift this is to your ability to completely top up annual RRSPs, TFSAs, RESPs.

Good Luck Arthur, you need to get your wife to understand the benefits of investing now for retirement for the both of you way way off in the future.

#26 bb on 08.13.18 at 8:33 pm

#12 Izzy Bedibida on 08.13.18 at 7:08 pm

Wow! Its her way or the highway.

#13 MGTOW on 08.13.18 at 7:12 pm

Best advice (Next to Garth, of course) =)

However, Unicorns are hard to find these days. Every newly wed guy would think they found the “right one”.

#27 Andrewt on 08.13.18 at 8:38 pm

#23 Dolce Vita on 08.13.18 at 8:27 pm
Rock and a hard spot with NAFTA if you listen to Rona Ambrose today.

We are next in line after Trump is done with Mexico (apparently he wants their auto wages to rise – music to the ears of their Union friendly newly minted President). So much for Canada Mexico solidarity vs. the Americans. Cut and run is more like it and of course, predictable. Shows how naive Trudeau and Freeland were – babes in the wood at the helm.

Sure, pal, whatever you say.

#28 Ronaldo on 08.13.18 at 8:40 pm

#2 Alex in Edmonton

I remember wondering why she thought boomers having to sell their houses when they retire (as they have few other assets) wouldn’t have the same effect on real estate. Regardless, do you think this boomer-retirement-driven-bear-market hypothesis holds any water
—————————————————————-
I don’t. What you will likely see over the next 24 years when the youngest of the boomers hits the age of 82, is a slow and steady flow out of the family home into smaller or maybe directly into elderly facilities. I don’t see any mass migration of boomers into boxes in the sky. Just won’t happen. Most of the boomers from the youngest to the oldest are enjoying being grandparents. A lot of Gen Xer’s have put off having children until the 30’s like our own children have. I cannot imagine entertaining the 5 that I have all under the age of 8 in a 2 b.r. condo in the sky nor can I imagine myself even owning one of those. I can certainly see myself moving into a gated community of smaller one level detached homes. As for apt. condos, forget about it. Oh, and boomers are not all retiring at the same time. It will be another 11 years before the last of the boomers hits 65. Don’t expect a mass exodus of boomers out of the workforce. Ain’t going to happen.

#29 Dolce Vita on 08.13.18 at 8:44 pm

Well Garth, you sure do know how to stir up the familial strife pot.

That from reading some of the Comments about the situation Arthur is in and what he should do (w.r.t., house lust wifey).

Comments acrimony an understatement (from personal experiences I read).

Men are indeed from Mars and Women from Venus (those with other pronouns, ala Jordan Peterson, pick another planet as your namesake but have a care with Uranus).

Yes Garth, I know, that was bad but I could not resist.

Again and as usual, impartial and great advice today.

– – – – – – – – – – – – – – – – –

PS: I liked the “…and cats can go on a two-year waiting list.” That was good.

Not fond of the 3 Cat black and white images, at first glance they looked like raccoons which made me wonder before reading your Blog, what on God’s Green Earth is he up to today?

#30 Ronaldo on 08.13.18 at 8:45 pm

A good article on Boomers hanging onto their homes until later in life.

https://business.financialpost.com/personal-finance/boomers-holding-tight-not-moving-into-retirement-homes-until-their-80s-report

#31 crowdedelevatorfartz on 08.13.18 at 8:54 pm

@#24 Wallflower
“his is a typical event in Portugal; very common
dogs wander homeless and ownerless, starving’
++++
Well.
It could be worse.
Dogs in Istanbul, Turkey were dropping dead on the street from no water and a record heat wave last Summer.

#32 Kat on 08.13.18 at 8:55 pm

I am not house horny but I am a stay at home parent and it seems being that makes me retired. Having just read many comments regarding how the wife should be contributing financially before being allowed in on a massive decision like buying a home I am disgusted. I work way more being a stay at home parent than when I was working full time. I hope all you Neanderthals making these comments are not married or if you are they must be saints because what a bunch of asses. To consider a stay at home parent retired is one of the most absurd comments I have ever heard. I don’t enjoy staying and taking care of the kids I would rather work, but it is a choice we made and the responsibility is ours. I work at home he works out, of the home an equal share in raising a family equals an equal share in the big decisions. Even if you don’t agree on it or have different ideas. Compromise is what makes a good marriage not treating your husband like the cash machine or your wife like a live in housekeeper with no pay. Get off the computer and go help your wife with the dishes, you might just get laid more often if you stop acting like such an asses.

#33 Real Estate Disaster - Big Price Cuts on 08.13.18 at 9:03 pm

The whole thing is coming unglued. Everywhere.

When was the last time you saw 20% cuts in price all over Vancouver?

#34 Redfin Crash - Everything You Need to Know Real Estate on 08.13.18 at 9:06 pm

The real estate market has dramatically shifted negative within the past month. All markets.

BC is wobbling bad.

I think people are getting the memo and stampeding out.

#35 Evangeline on 08.13.18 at 9:15 pm

#23 DV

“No way do I see Canada winning in NAFTA with an adamant, bullying, actually does what he says, Trump (the @real Trump).”

I wonder if the Canadian negotiating team has read The Art of The Deal.

#36 Frustrated Kiwi on 08.13.18 at 9:22 pm

“cats can go on a two-year waiting list”
One of your best throw-away lines ever! (And I like cats.) :-)

#37 tccontrarian on 08.13.18 at 9:27 pm

“To recap: you live in an okay home with minimal financing on it. You’ve finally landed a good job after a struggle. You just started to seriously save and invest. You now support three other people. You’re only 35. Your spouse earns nothing, yet is pushing to buy a house more than twice as expensive as the one you have now, plunging the family into debt.

What’s wrong with this picture?” GT
——————————-

Sometimes it really sounds like people have suicidal tendencies – at least the financial kind.

“…everyone around me says to just jump in the deep end of the pool, that I would never regret buying new real estate, etc etc.”
——-

Seriously? None of these people are going to be there for you if things go sour (which they could, given the debt-exposure etc).
If you’ve been reading this blog all this time, surely you’re not going to allow the ignoramouses nudge you towards unsound financial decisions, are you?

TCC

#38 bob dog on 08.13.18 at 9:27 pm

As if SR&ED wasn’t bad enough, I just learned the corrupt government of New Brunswick is giving the American company, that just acquired the Canadian company I work for, a $380,000.00 welfare handout to create 25 jobs in St. John. But wait it gets better. These are tech jobs so 20 of the 25 positions will be filled by migrants. I wonder how struggling homedebtors of NB feel about paying the salary of the employees of a multi billion dollar American Venture capital firm exploiting Canada for profit.

Every politician in Canada (past and present) should be ashamed of themselves to the point of suicide.

#39 Reality is stark on 08.13.18 at 9:51 pm

Pitch a tent in the backyard for extra space.
She can put all her chichkas in there and don’t let her buy any more chichkas.

#40 Moh on 08.13.18 at 10:00 pm

#32 Kat on 08.13.18 at 8:55 pm

Thank you for your comment.

#41 Suburban Guy on 08.13.18 at 10:06 pm

Wrong Garth,
She is saving money through the corp. She is saving the the 9.9% contributions on CPP and puleez don’t tell me that it’s worthwhile to pay the premiums because she’ll collect sometime in the future.

#42 Sus on 08.13.18 at 10:08 pm

#32 Kat

“I am not house horny but I am a stay at home parent and it seems being that makes me retired. Having just read many comments regarding how the wife should be contributing financially before being allowed in on a massive decision like buying a home I am disgusted. I work way more being a stay at home parent than when I was working full time. I hope all you Neanderthals making these comments are not married or if you are they must be saints because what a bunch of asses. To consider a stay at home parent retired is one of the most absurd comments I have ever heard. I don’t enjoy staying and taking care of the kids I would rather work, but it is a choice we made and the responsibility is ours. I work at home he works out, of the home an equal share in raising a family equals an equal share in the big decisions. Even if you don’t agree on it or have different ideas. Compromise is what makes a good marriage not treating your husband like the cash machine or your wife like a live in housekeeper with no pay. Get off the computer and go help your wife with the dishes, you might just get laid more often if you stop acting like such an asses.”
———————————————

Perfectly said Kat. Marriage in the western world is meant to be an equal relationship. There seem to be far too many men (‘neanderthals’) on this blog who think and act as if they’re living in the 50’s. Shame on you.

#43 FATLADY on 08.13.18 at 10:10 pm

TO: Advice-Seeking JAY

This is comments gonna hit a few nerves but oh well you asked for it.

IF your wife wants a bigger house then tell her to ” GET A CAREER AND HELP PAY FOR IT”

#44 Long-Time Lurker on 08.13.18 at 10:28 pm

#53 Re 30. All time lurker on 08.12.18 at 7:15 pm

You’re wrong about the condo prices in van dropping due to closing stores beacuse the condos are largely empty.
However, since the true reason for that is not allowed to be discussed here let’s just leave leave it at that.

>I’ll leave it at: You have no argument and you’re hiding behind Garth.

#144 Shortymac on 08.13.18 at 3:16 pm

…It seems like businesses would rather die off rather than raise wages. Why?

>Why operate a business when you’re not making any money off of it?

…I recall riding home in a taxi one night more than ten years ago, with Vera Wang and a couple others. We were riding up Madison Avenue heading into the Seventies when one of passengers remarked to Vera that she must be making a fortune in her shop in the Hotel Carlyle building on Madison and 77th Street. Vera said then that nobody with a shop on Madison Avenue made any money because the rents were so high. They justified the rent for the prestige it brought their (expensive) product.

https://wolfstreet.com/2017/06/24/haunting-photos-of-shuttered-stores-on-madison-avenue/

#45 akashic record on 08.13.18 at 10:31 pm

#38 bob dog on 08.13.18 at 9:27 pm

As if SR&ED wasn’t bad enough, I just learned the corrupt government of New Brunswick is giving the American company, that just acquired the Canadian company I work for, a $380,000.00 welfare handout to create 25 jobs in St. John. But wait it gets better. These are tech jobs so 20 of the 25 positions will be filled by migrants. I wonder how struggling homedebtors of NB feel about paying the salary of the employees of a multi billion dollar American Venture capital firm exploiting Canada for profit.

Every politician in Canada (past and present) should be ashamed of themselves to the point of suicide.

That’s exactly the problem when the simple and necessary financial transaction of buying labor is turned into the econo-political God complex, called “creating jobs”.

Purchasing required labor creates out of the thin air bankable tax benefits for companies and political capital that buys votes for politicians.

A match made in heaven, unfortunately, wide open for potential corruption.

#46 crossbordershopper on 08.13.18 at 10:31 pm

a vet who makes pocket change, go to the usa, make real money and pay low taxes,
and for the second, go to the usa, make even more money and pay less taxes and buy cheaper real estate.
canada is for immigrants, to help the 87 families who run it continue their monopoly games.
who sets cell bills, the price of cheese, the price of gas you pay, etc etc. whats even more sinister is that the banks structure it so that the lady would have trouble even though she is a vet to get a loan build her business. competition high overhead etc.
for the other guy, we are all victims of being male and serving women. you can do that but the high real estate does anchor you down which is what the system wants you to do.
conformity is the only way in Canada. fighting is futile, so pack up and be free in the USA. if you fail, you can always come back to Canada, last i checked in the right places the RCMP guy will help you with your suitecase as you walk in the pathway in upstate Vermont.

#47 Animal lover on 08.13.18 at 10:41 pm

#13 MGTOW
Thank you for your thoughtful insight. Clearly not your first rodeo. Appreciated.

#48 akashic record on 08.13.18 at 10:49 pm

#46 crossbordershopper

Hm… that was pretty good for this late Monday hour.

#49 Oft deleted much maligned stock.picker on 08.13.18 at 10:49 pm

215 billion litres….that’s raw sewage flowing into Canada’s pristine enviornment…..but if one meter of pipeline gets built Canada’s oil enemies like Trudeau Butts. Tides Jagmmeet….they just can’t contain themselves …..what hypocrisy. Pestilence and disease will kill you a lot faster than a long summer day in Montreal.

#50 Alex from Edmonton on 08.13.18 at 10:55 pm

I guess it was unclear in my previous post, but my aunt with the boomer-retirement-driven-bear-market hypothesis was talking about the stock market, and was using it as an excuse to not put her money (which she got from selling a GVA property at peak) into a balanced portfolio, and instead plowing it right back into that same property bubble. Because boomers are going to stagnate the world stock market, but Vancouver area houses can only ever go up!

#51 akashic record on 08.13.18 at 10:59 pm

#46 crossbordershopper

I didn’t know it was 87.

Just starting to sink in… I wonder if it’s less or more than the number of dirty oligarchs running Russia.

#52 The Real Mark on 08.13.18 at 11:04 pm

What these men need to learn to do is to say NO to their woman

Like me for example, when my mom told me to move out of her basement, I said NO!

#53 Corpy on 08.13.18 at 11:05 pm

Hi Garth, my son has a plumbing business, his revenue is 700k per year on average, after paying himself 60k and his wife 30k the company pays corporate tax on roughly 150k. Should he be incorporated?
Thanks
Bruce

#54 The WOMBAT on 08.13.18 at 11:08 pm

@#32
Hey Kat. I told people who questioned our situation, much the same as yours, “I make the living, she makes the living worthwhile “.

#55 Axehead on 08.13.18 at 11:23 pm

RAMBO – from a few posts back:

Things I did to pay off my first house in 5 years:

1 – drove shitbox cars
2 – dumped all extra cash onto mortgage
3 – ate at home
4 – put 25% down
5 – bought modest first home (800 sq ft, 2 bedroom, no granite, no SS appliances)
6 – did all my own renovations (fence, basement)
7 – doubled up on mortgage payments

#56 The Cynic on 08.13.18 at 11:29 pm

Hey Garth,

Could you comment on the Lira’s “death spiral” and contagion risks? I think it was Lewenza that’s been boosting that EM’s are super cheap but they sure took a hit this week.

#57 Phylis on 08.13.18 at 11:34 pm

#34. No wonder nobody likes kats…

#58 SoggyShorts on 08.13.18 at 11:37 pm

#32 Kat on 08.13.18 at 8:55 pm
… I am a stay at home parent …… I work way more being a stay at home parent than when I was working full time. ……. I don’t enjoy staying and taking care of the kids I would rather work…..
********************
Your life sounds like an ad for DUREX..

#59 Where's The Money Greedo? on 08.14.18 at 12:13 am

So previous property I put up here is now not showing any sales pamphlets out front anymore.
Maybe he reads Garth’s blog and noticed I read those before reporting, lol.
Speaking of accounting, has anyone had the MIS-fortune of signing up for PC Optimum points.
They supposedly have 20 million plus cards out there. You know where 1000 points equal a buck in groceries etc.
Well ever since I have joined in 2014, I have collected points almost every week, BUT, have found missing points. I then have to phone them and go through at least an hour of them searching to find my points and sure enough, 99% of the time it’s their fault.
Have you ever tried to understand their accounting in your account? Impossible without their info that should be on your account but hidden from you.
Last week they had an offer (email and in account offers) if you bought $50 worth of gas at their Mobil stations they would give you 10,000 points = $10, after a wait of 72 hours.
So sure enough I take that offer, fill up on Wednesday the 8th and wait for the 10k pts. I check today, no points, phone PC Optimum and sure enough I wasn’t credited, happens almost every week for something. While investigating I come across another that should have paid me 2500 points. So that $12.50 I’ve been burnt.
So if this company screws 1 cardholder a month, then they are profiting by $20 million that they don’t have to pay out. That’s bad enough, but what if they are somehow writing those points off against tax and getting a double whammy of not paying and getting a tax break? Maybe Garth can enlighten us on that aspect.
Let’s take a poll and see who has these cards amongst the deplorables and if they’ve been burnt, or if they have checked. I estimate 75% of the time there are discrepancies in price or points awarded in my dealings with them.
I contacted the Competition Bureau many times but so far nothing.
CRA is next!

#60 acdel on 08.14.18 at 12:17 am

42 Sus #32 Kat

The only neanderthal meaning that I get out of your comments are from the both of you. This is 2018 not the 1950’s, do you have any idea what a woman went through in the 50’s without today’s creature comforts. You have it good comparing to them.

I agree with other posters, if you want the big gems then work for it; especially once the kids are in school, times are different, selfish,selfish,selfish you are, wake up! Your guys are doing what they can in todays world.

#61 Smoking Man on 08.14.18 at 12:36 am

DELETED

#62 Where's The Money Greedo? on 08.14.18 at 12:49 am

I meant to say in my last post: If Superstore-PC Optimum screws a cardholder of 1000 points/$1 per month and with 20+ million cardholders, they can reap $20+ million in non-payments that were earned in a month. Money in Weston’s bank, the one in Barbados with he the only customer, and whom the CRA is looking to collect $405 million for tax evasion. Maybe it wasn’t from the bread fixing after all, just a diversion.

#63 MGTOW on 08.14.18 at 1:13 am

#32 Kat

It’s the women who are living in the 60’s. They want feminism, but not responsibility. “You cook super and clean the dishes!” they yell like a bunch of Antifa morons, while not working. Meanwhile most people realize that even working people have to do their own dishes. Having a job does not relieve you of the fact you still have to mow the lawn. Don’t buy things you don’t want to maintain. The laundry has to be done either way. It’s your dirty panties. Guess who has to wash them?

#64 Smoking Man on 08.14.18 at 1:13 am

Things are getting nasty out there.
Communist Globalist last stand…

40 years in back rooms plotting the destruction of competition and the men with balls that take risks.

Your little salad eating army is no match for masculine boys that grew up eating bleeding staek. And would drop the gloves at any ass hole that gave them cut eye.

Your done. Who is going to save you ass antifa? You’ve pissed of the cops, the army, and real men who grew up playing rep hockey eating raw meat.

I suggest now that you have made the head lines. Play video games in mom’s basement, that’s the only place you will ever have the felling of victory again. Come to the street , ill introduce you to canadian hockey players. A 60 year old.. Punks.

#65 MGTOW on 08.14.18 at 1:26 am

#47 Animal lover

Not my first rodeo. My mom told me from a very young age, perhaps that is how she taught me to speak, that women were pure virgins and in all ways always to be venerated. She lied, probably trying to hide her own guilt. Her advise was horrible. Awful. Couldn’t be more wrong she just wanted me knocking up any girl that came along so she could have grand-babies she would then ignore.

But why she did it is not as important as is the fact she lied. All people and animals are in this game we call “survival of the fittest”. Life is a contest, a game. The question is, do you want to play? She wanted me in the game as she was, win or lose.

Don’t play. The dinosaurs went extinct. So will we. Your offspring will as well. There is no future on a long enough time frame. Enjoy today. It’s all you’ve got.

#66 Smoking Man on 08.14.18 at 2:34 am

When a salad eater has control.. It’s temporary

https://youtu.be/8lhPxDCNF0o

#67 Oft deleted much maligned stock picker on 08.14.18 at 3:16 am

DELETED

#68 My big sister told me on 08.14.18 at 4:35 am

Dear Arthur. It can be very hard to go against the grain if you don’t have a vision of what it will bring you. Your wife may have lost the vision of what the financial freedom you are building will bring you. I say this sitting at the airport in Paris waiting for our flight home. Just showed our three kids Rome, London and Paris. Think we’d be doing that had we bought the more expensive house we did not need? Seriously, my kids just got to experience art and culture first hand. They will chose a university based on their interest and educational needs (not cheapest tuition) and they will post none of this on Facebook. My recommendation is that you remind your wife that money is about choices…what does she really want…to keep up with the Jones or be free to offer her kids a shot at a good and real life? … but don’t ask the question if you can’t handle her answer…

#69 BillyBob on 08.14.18 at 5:16 am

I am not house horny but I am a stay at home parent and it seems being that makes me retired. Having just read many comments regarding how the wife should be contributing financially before being allowed in on a massive decision like buying a home I am disgusted. I work way more being a stay at home parent than when I was working full time. I hope all you Neanderthals making these comments are not married or if you are they must be saints because what a bunch of asses. To consider a stay at home parent retired is one of the most absurd comments I have ever heard. I don’t enjoy staying and taking care of the kids I would rather work, but it is a choice we made and the responsibility is ours. I work at home he works out, of the home an equal share in raising a family equals an equal share in the big decisions. Even if you don’t agree on it or have different ideas. Compromise is what makes a good marriage not treating your husband like the cash machine or your wife like a live in housekeeper with no pay. Get off the computer and go help your wife with the dishes, you might just get laid more often if you stop acting like such an asses.

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

Well, it’s nice to know that at least you’re not bitter or anything about your “compromise”.

Ugh. No wonder people are marrying less and less these days. Just not worth it and rants like this only serve to illustrate why.

—————————————————

#24 Wallflower on 08.13.18 at 8:29 pm
yes DQ
think you missed my point
this is a typical event in Portugal; very common
dogs wander homeless and ownerless, starving

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

The dog in the pic is so very obviously the polar opposite of “homeless and starving”.

Perhaps one day we’ll have the same amount of empathy for homeless people, but probably not.

#70 Under the radar on 08.14.18 at 6:05 am

Limited liability is no myth. Of course there is personal liability for government source deductions and HST but these are trust monies anyway. As against the general public , absent fraud, limited liability is alive and well and lawyers would be negligent in not advising a small business to incorporate. Piercing the corporate veil is not easy . Any business owner such as the plumber above who does not incorporate exposes themself to unlimited personal liability. Insurance does not always accept liability .

Check out case law. Sole shareholders who think they can hide behind a piece of paper are in for a surprise. – Garth

#71 Another Deckchair on 08.14.18 at 7:22 am

#42 Sus, and Kat

“Perfectly said Kat. Marriage in the western world is meant to be an equal relationship. ”

Yup – as an older male, who was a stay at home parent for a while, not all of us are idiots.

Mind you – when the inevitable happened, I got defacto custody of the kids, and in the end, I wonder if my ex. was the smarter one! (smile)

#72 Bytor the Snow Dog on 08.14.18 at 7:34 am

@32 Kat- LOL. No wonder men don’t take women seriously anymore. Western women are the most pampered women in the history of the world and they still complain.

#73 Howard on 08.14.18 at 7:49 am

#3 alex k on 08.13.18 at 6:18 pm
Most immigrants come to this country with nothing,
enough said

——————————————-

Completely untrue. Many if not most immigrants come to Canada already firmly middle class to upper-middle class even by Canadian standards.

This is not Ellis Island in 1910.

The median annual income for immigrants to Canada, government stats show, is $31,000. – Garth

#74 Tater on 08.14.18 at 8:09 am

So does MGTOW = Moron Guy Types On Web?

#75 dharma bum on 08.14.18 at 8:14 am

Hey Artie,

Here’s an idea:

Sell the house to your mom, and YOU rent it from HER for $1000/month.

Pay off the mortgage, and invest the equity.

Oh, and tell the wife to “shut it”!

#76 Tater on 08.14.18 at 8:14 am

#56 The Cynic on 08.13.18 at 11:29 pm
Hey Garth,

Could you comment on the Lira’s “death spiral” and contagion risks? I think it was Lewenza that’s been boosting that EM’s are super cheap but they sure took a hit this week.
—————————————————————-
If the FX options market is to be believed, next up is Brazil!

#77 TurnerNation on 08.14.18 at 8:18 am

It’s of importance to realize that 80% of “news” is social programming. Softening us up to live in an open air UN post national tax slave kamp. Where all animals are equal…some more than others. (The ones you are not allowed criticism of)

And Bob dog above…your old stock mentality of meritocracy has no bearing.
Read how unfair it is that some people work hard get educated and take care of their homes!

https://www.thestar.com/news/gta/2018/08/11/are-torontos-elites-really-downtown-its-not-so-simple.html

#78 Oft deleted much maligned stock.picker on 08.14.18 at 8:28 am

DELETED

#79 crowdedelevatorfartz on 08.14.18 at 8:32 am

@#32 kat
“Get off the computer and go help your wife …..”

+++++

You werent too busy “slaving away”… to stop, read, and then comment on this blog…..

The example I gave involves a man and his wife. They have no children, no pets. They rent a 1 bedroom apartment. She hasnt worked in at least 25 years. She endlessly surfs the intenet sitting in an uncleaned, dirty apartment with dishes stacked in the kitchen, while he goes to work…..
For her to kibosh the decision to buy a 3 bedroom duplex “because she’d didnt like it” almost 25 years ago has essentially yanked the only “investment savings” potential they might have had.
Stop being the “unpaid housewife slave martyr” and read what is posted before exploding in outrage at the “neaderthals”.
She doesnt work, therefore she doesnt contribute ANYTHING financially. Thus she shouldnt have been the major decision maker on possibly the most important financial decision that married couple has made.
But, whatever.
You go girl. Hell hath no fury like a housewife scorned.

#80 Renter in Burlington on 08.14.18 at 8:53 am

#42 Sus, and Kat
As a working woman who took a year off to stay home with my children when they were little, I see both sides of this. Yes, I enjoyed staying home with my little ones for about 9 months, then I started a home-based business because I was bored, bored, bored. The home-based business allowed me the flexibility to spend quality time with my children, yet still kept my mind active and provided me with rewarding business experience. I was also able to contribute to the household – not as much as when I was working full time, but certainly enough to make a difference. After a few years, I went back to work full time. My two cents worth is to get off your butts ladies. Raising children is not a full-time job. Many working moms do what you’re doing in addition to having full time careers. It’s a nice thing to be able to do for a while, but when reality sets in, it’s time to go back to work! And if you want nice things, you need to work for them.

#81 Karl on 08.14.18 at 9:27 am

The median annual income for immigrants to Canada, government stats show, is $31,000. – Garth

Garth, while I never cared too much for this debate, that stat is only showing annual income. How about the money they are bringing with them?

Also, three Canadian cities in Top Ten Most Livable Cities, again. But of course that doesn’t matter for real estate prices.

PS – I AM NOT A REALTOR, give it a rest.

Immigrants are not the cause of high housing prices. Get over it. – Garth

#82 IHCTD9 on 08.14.18 at 9:44 am

#13 MGTOW on 08.13.18 at 7:12 pm

Therefore, the moral of the story is “don’t marry a stranger”.
________

This was one of your more reasonable posts Mr. MGTOW. Especially the bit I left tagged above. I’ve watched a couple guys I know find out way too many NEW things about their new wives AFTER they married them. Piles of undisclosed debt, 100+ previous sexual partners, and character flaws that were well hidden during the courtship.

#83 IHCTD9 on 08.14.18 at 10:02 am

#32 Kat on 08.13.18 at 8:55 pm
I am not house horny but I am a stay at home parent
______

Here’s a good plan. When the kids are in School full time, go back to work. Get yourself a house cleaner to come in once a week. Keep life simple till the kids are older, and while that happens you and hubs work to pay debt, and invest.

#84 Really! on 08.14.18 at 10:07 am

@ #13 MGTOW: Excellent post! It should be required reading in high school.

I work at a large manufacturing facility and have watched dozens of (mostly men) go through anguish and heartache for many years. It’s been said that 95% of marital arguments are over money. So it would make sense to take that out of the equation where ever possible.

One surprise that pops up regularly for women is that they are equally liable to support a man if he’s unable to work or she makes more money.

#85 jess on 08.14.18 at 10:28 am

31 crowdedelevatorfartz on 08.13.18 at 8:54 pm
…”the Turkish lira has lost more than 40 percent of its value versus the U.S. dollar over the past year, making its sizable dollar-denominated debts harder to repay; interest rates are at 17.75 percent in Turkey, making further hikes by the central bank to support the currency unpopular; inflation is running at 15 percent. ”

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

who is who, who owns whom, and who owns what.
“In the last few years, the decades-old “collective action” problem of mobilizing broad support for creating a worldwide, single identification system has been solved for derivatives transac-tions. This Legal Entity Identifier (LEI) system is now being implemented for other asset classes, such as private funds and insurance holdings and the entities making up complex bank holding companies….

But there are reasons why the financial industry is behind. Patents are largely unavailable for new financial products, so they can be reverse engineered and pirated.
These circumstances encourage protective opacity and other defensive measures, particularly for complex prod-ucts. Unlike manufacturing, the financial industry does
not require physical parts such as nuts and bolts to be shipped from far away ports, so it does not always place a priority on cooperating on supply and distribution channels or standardizing inputs. In the financial industry, a product can be invented and manufactured with little more than access to data and the money to finance the access. High profit margins allow inventors to absorb the costs of nonstandard, proprietary data to build new products for the market. The result is custom-built data solutions that lack transparency and lead to higher prices, encouraging the adoption of still more custom-built, proprietary standards. read more here :
https://www.financialresearch.gov/briefs/files/OFRbr_2017_01_LEI.pdf
https://www.financialresearch.gov/briefs/2017/02/02/collective-action-toward-solving-a-vexing-problem-to-build-global-infrastructure/
====================================================
From the agency office fiancial reform (OFR)

see – OFR report showing how interconnected the big Wall Street banks have become to the largest U.S. insurers through derivatives.
“U.S. global systemically important banks (G-SIBs) have more than $2 trillion in total exposures to Europe. Roughly half of those exposures are off-balance-sheet…U.S. G-SIBs have sold more than $800 billion notional in credit derivatives referencing entities domiciled in the EU.”

U.S. insurers and derivatives:

“At the end of 2015, U.S. life insurers’ derivatives exposure, as reported in statutory filings, totaled $2 trillion in notional value. This $2 trillion does not include derivative contracts held in affiliated reinsurers, non-insurance affiliates, and parent companies that do not have to file statutory statements. Details on these entities’ derivatives positions are not publicly available.”

“According to statutory data on insurance company legal entities, nine large U.S. and European banks are counterparties to about 60 percent of U.S. life insurers’ $2 trillion in notional derivatives. These data show that despite central clearing, derivatives interconnectedness between the U.S. life insurance industry and banks remains substantial.”

“Deficiencies in data and data management remain a critical vulnerability. Data needs remain unfilled, particularly in shadow banking markets. Many of the new data are not ready or available for analysis. Despite progress, the probability remains high that data deficiencies will again prevent risk managers and regulators from assessing risks before it is too late.”

#86 IHCTD9 on 08.14.18 at 10:29 am

#55 Axehead on 08.13.18 at 11:23 pm
RAMBO – from a few posts back:

Things I did to pay off my first house in 5 years:

1 – drove shitbox cars
2 – dumped all extra cash onto mortgage
3 – ate at home
4 – put 25% down
5 – bought modest first home (800 sq ft, 2 bedroom, no granite, no SS appliances)
6 – did all my own renovations (fence, basement)
7 – doubled up on mortgage payments
______

I did all that except #4 (we did 10%), and #2 (we were also investing as a priority), and a modified #7 (we put a lump sum on top every month) and it took us 14 years.

To nuke a mortgage in 5 years I think #2+7 sums it up. I have a buddy who paid his off in 5 years too – but it took extreme measures and big resolve. He did not even buy a computer, no cell, got 10 years out of his “college car” etc.. He had a low earning wife and 2 kids to boot at the time. Amazing what some can pull off.

#87 FOUR FINGERS WATSON on 08.14.18 at 10:42 am

The Ontario government says it will take Victoria’s statue of Sir John A. Macdonald.

The statue of Canada’s first prime minister was removed Saturday, in what Victoria’s Mayor Lisa Helps called a gesture of reconciliation to First Nations over his role in creating Canada’s residential school system.

The removal has drawn criticism from conservatives over rewriting the nation’s history.

Ontario Culture Minister Sylvia Jones says the province has written to Victoria, saying the province would be happy to find the statue a new home in that province.

“History matters, and we need to acknowledge the important role that Sir John A. Macdonald played in Canada and Ontario’s history,” Jones said. “He did more to found our nation than any other Father of Confederation.”

#88 IHCTD9 on 08.14.18 at 10:54 am

#60 acdel on 08.14.18 at 12:17 am
42 Sus #32 Kat

The only neanderthal meaning that I get out of your comments are from the both of you. This is 2018 not the 1950’s, do you have any idea what a woman went through in the 50’s without today’s creature comforts. You have it good comparing to them.

I agree with other posters, if you want the big gems then work for it; especially once the kids are in school, times are different, selfish,selfish,selfish you are, wake up! Your guys are doing what they can in todays world.
_______

I expect the time is near when Women who have zero earning potential (drive, ambition, education etc) who hope to marry – will have a hard time doing it. Housewifery is dead as a doornail in most of the country due to simple economics.

My life would suck yuge without Ms. IH and I BOTH earning a decent income, the cost of life in the Western world DEMANDS two incomes for any level of comfort and security.

If I ended up in the dating pool again, I’d pretty much need to glean of any potential LTR partner her entire financial, earning, and spending history before I’d even let anything get started. I simply won’t even become involved with a Women who does not earn at least as much as I.

Yes I realize priorities are different for young kids just starting out, but a couple decades of married life has taught me the HUGE value of a two earning household – and this benefit extends well beyond just having more money to blow.

#89 Remembrancer on 08.14.18 at 11:10 am

#59 Where’s The Money Greedo? on 08.14.18 at 12:13 am

What makes you think the missing points on the books are a tax break?

Regardless, the information they’re mining from you and the time you are spending even giving them more verifiable information to get points is vastly more lucrative to them…

#90 Gravy Train on 08.14.18 at 11:20 am

#67 Oft deleted much maligned stock picker on 08.14.18 at 3:16 am
DELETED

#78 Oft deleted much maligned stock.picker on 08.14.18 at 8:28 am
DELETED

Careful now: You know what happens after a third deletion. :)

#91 Remembrancer on 08.14.18 at 11:22 am

#86 IHCTD9 on 08.14.18 at 10:29 am

Amazing what some can pull off.
——————————————–

Its all about priorities, this may be an extreme example to many, but setting goals and working to them should never go out of style…

#92 Karl on 08.14.18 at 11:25 am

Immigrants are not the cause of high housing prices. Get over it. – Garth

And where did I say that? I said on the front end that I did not care for the immigrant debate. I was just pointing out that your statistic as sourced from Government of Canada may not tell the entire story.

Then provide more than an uninformed opinion. – Garth

#93 IHCTD9 on 08.14.18 at 11:33 am

#80 Renter in Burlington on 08.14.18 at 8:53 am
____

Bravo.

It’s impossible with the costs of living today, and the tax structures for high earning individuals; that life can be good for a single income household for the 99%. A little over 100K for a single earner – and half+ of every dollar from there on up is smoked in taxes.

Same with RRSP’s and TFSA – nearly double the tax sheltered investing horsepower with dual incomes (with the actual means to fill them).

I can’t even begin to list all the negatives my household would experience if Ms. IH did not work. These are way more than doing a little housework during the day could ever make up for.

If a couple wants a SFD home, two nice cars, a nest egg, some decent vacations, a toy or two – that stuff NEEDS two incomes.

Housewifery is ultra-dead for those of us 99% with our eyes open.

#94 funny bone on 08.14.18 at 11:40 am

Its over

https://www.movesmartly.com/articles/28-of-toronto-area-houses-for-sale-are-empty

#95 A J on 08.14.18 at 11:40 am

#13 MGTOW
Great post! Finding the right life partner is one of the most important decisions you’ll ever make in your life. Some people get married too quickly or without enough thought. It’s a huge mistake.

@Kat – you’re taking everyone’s posts way too personally. Stay at home parents are retired, in essence. They aren’t making any money. I don’t think anyone is saying they don’t “work”, but in the context of this conversation, they aren’t contributing financially. Therefore, putting pressure on their bread winner spouse to buy expensive things is unfair. It just is. The stress that puts on their significant other is cruel. She’s supposed to be part of the team, not a tyrant.

Also, Smoking Man….I eat steak and play hockey, and I’m a Liberal. Bet I’m better at hockey than you too, and I’m a girl.

#96 Lee on 08.14.18 at 11:47 am

To Whomever It May Concern:

A small corporation will not protect you as a shareholder from most of your company’s tax liabilities, at least the big ones. It likely won’t protect you from your bank. It won’t protect you from the WSIB, or not paying employees some of their wages. It likely won’t protect you from your landlord. And it won’t protect you from your partners if you screw them over. You might be protected from common suppliers, and maybe a product liability case. You’re probably protected from the guy who supplies the vending machine in your office kitchen, if you filled in the paperwork correctly. A small corporation provides very limited protection to shareholders against liability for corporate debts, but it does provide some protection. For example, you may be able to stiff your corporate lawyer.

#97 IHCTD9 on 08.14.18 at 11:49 am

#81 Karl on 08.14.18 at 9:27 am
The median annual income for immigrants to Canada, government stats show, is $31,000. – Garth

Garth, while I never cared too much for this debate, that stat is only showing annual income. How about the money they are bringing with them?

Also, three Canadian cities in Top Ten Most Livable Cities, again. But of course that doesn’t matter for real estate prices.

PS – I AM NOT A REALTOR, give it a rest.

Immigrants are not the cause of high housing prices. Get over it. – Garth

_________

https://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/immigrants-come-to-canada-with-an-average-47000-in-savings/article23970582/

“Immigrants arrive in Canada with an average of $47,000 in savings but end up using more than half that to get settled, according to a new study.

And almost one-fifth of immigrants come with no savings whatsoever, the report by the Bank of Montreal says.

After all initial expenses related to making the transition to a new life in Canada, immigrants are left with an average of $20,000, the survey results published Wednesday indicate.”

I think the idea that tons of immigrants come to Canada with tons of money in tow is one of those things that “we know for sure that just ain’t so”.

#98 Ubul on 08.14.18 at 12:05 pm

The median annual income for immigrants to Canada, government stats show, is $31,000. – Garth

I am surprized that the government collects such stats at all. How long are immigrants tracked like this by the government for income or other purposes? What other data does the government collect based on this criteria?

#99 Wrk.dover on 08.14.18 at 12:13 pm

[email protected] helped me temporarily park my TSFA in a fund called RBF2010 within my brand shining new investment acct. She said it is fully insured, no minimum time required to leave it there to collect interest, can’t lose it, move any or all of it when you are ready.

Then the statement comes in the mail referring to it as a mutual fund, showing no accrued interest thus far for a partial month.

Can someone here assure me all of her information on this item is correct?

Help! Please!

That is merely an RBC savings account. The interest paid is 0.85%. Why would you let her do that? – Garth

#100 Renter's Revenge! on 08.14.18 at 12:56 pm

I think a lot of spouses making brain dead financial decisions really just want out of the relationship, but they’re afraid to admit it, so they sabotage the relationship instead.

#101 FLHTK on 08.14.18 at 12:56 pm

I’m in the same situation as this guy same age married minus 1 kid….do we sell make some dough on our place and move up while paying off some debt or stay put and deal with the lack of space for a growing family? It’s a tough call

#102 Shortymac on 08.14.18 at 12:58 pm

Uhhhh, why not just have Mom move in with you?

Make an in-law suite for her and have her pay a significantly reduced rent, have her save the difference in an RRSP.

Put some cash into Renoing your current place to get your wife off the “new house” thought. Encourage her to have new hobbies.

When she retires she can watch the kids and your wife can go back to work for more $$$.

#103 Greg on 08.14.18 at 1:42 pm

Dear Garth,

Love your articles and comments. Thank you very much. All I ask for is to revamp the comment section, too much junk in this space.

#104 Karl on 08.14.18 at 1:44 pm

https://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/immigrants-come-to-canada-with-an-average-47000-in-savings/article23970582/

“Immigrants arrive in Canada with an average of $47,000 in savings but end up using more than half that to get settled, according to a new study.

And almost one-fifth of immigrants come with no savings whatsoever, the report by the Bank of Montreal says.

After all initial expenses related to making the transition to a new life in Canada, immigrants are left with an average of $20,000, the survey results published Wednesday indicate.”

I think the idea that tons of immigrants come to Canada with tons of money in tow is one of those things that “we know for sure that just ain’t so”.

If that data is accurate, and I have no reason to think it is not, it makes you wonder how those people survive in places like GTA and GVR if the average income is a paltry 30K.

Believe it or not, lots of people make 30K and live their lives. You sound like a piece of work. – Garth

#105 James on 08.14.18 at 2:06 pm

#64 Smoking Man on 08.14.18 at 1:13 am

Things are getting nasty out there.
Communist Globalist last stand…

40 years in back rooms plotting the destruction of competition and the men with balls that take risks.

Your little salad eating army is no match for masculine boys that grew up eating bleeding staek. And would drop the gloves at any ass hole that gave them cut eye.
Your done. Who is going to save you ass antifa? You’ve pissed of the cops, the army, and real men who grew up playing rep hockey eating raw meat.
I suggest now that you have made the head lines. Play video games in mom’s basement, that’s the only place you will ever have the felling of victory again. Come to the street , ill introduce you to canadian hockey players. A 60 year old.. Punks.
___________________________________________
HA,ha,ha,ha who is the sixty year old Smoking Man your son? You must be at least in your late sixties from the post you send out old man. Hey old man perhaps that is why your so unhinged from eating raw meat you crazy old coot.
https://www.forbes.com/sites/quora/2017/03/20/why-cooked-meat-is-easier-for-humans-to-digest-than-raw-meat/#6b1bc6a67215

#106 Wrk.dover on 08.14.18 at 2:26 pm

Garth: the key words were temporarily park. The question is how can a mutual fund even be insured though?

There is a Bearded Gentleman in Lunenburg I need to hand the controls to for this thing sooner than later.

All cash-equivalent investment assets are insured under the CIPF umbrella if the institution is a member (which RBC is). That means if the bank went paws-up, you’d get the money back. But anything paying you 0.85% is substandard. – Garth

#107 IHCTD9 on 08.14.18 at 2:33 pm

#104 Karl on 08.14.18 at 1:44 pm

If that data is accurate, and I have no reason to think it is not, it makes you wonder how those people survive in places like GTA and GVR if the average income is a paltry 30K.

Believe it or not, lots of people make 30K and live their lives. You sound like a piece of work. – Garth
__________

https://www.toronto.ca/wp-content/uploads/2017/10/8f41-2016-Census-Backgrounder-Income.pdf

“In 2015, the median total income of individuals age 15 and older in Toronto was $30,089.This is the lowest of all regions in the GTHA. The highest was in Halton at $42,577. The median individual income was $34,204 for Canada and $33,539 for Ontario.”

Yep – lots of folks getting by on not a lot – 50% obviously make even less. A full time minimum wage earner would make 29K per year, so the median individual income in Toronto is basically minimum wage. Even the high end of medians in Halton is only like 20.50/hr. Boatloads of folks all over making jack.

#108 Barb on 08.14.18 at 2:40 pm

” #13 MGTOW on 08.13.18 at 7:12 pm

The most important financial decision you will ever make is who you marry. The right woman (or man for the ladies) can be an incredible partner and help grow the family assets. The wrong woman (or man) will financially ruin you.”

—————————————
Agree completely.

A good “test” is to look at the parents.

#109 jess on 08.14.18 at 2:50 pm

sexual predators hiding in religion/law and the unbelieveable !

mr. ford should listen to this
rethink cancel/change sex education….

coverup and hide behind statue of limitations the jurors feel there are probably more victims
some were gagged from speaking in exchange for settlement silence

the grand jury now gives them all a voice

PA Attorney General gives update on clergy sexual abuse probe

The Pennsylvania Attorney General releases a grand jury report on a state investigation into sexual abuse by more than 300 Catholic priests.

https://www.cnn.com/specials/live-video-3?adkey=bn

#110 Ace Goodheart on 08.14.18 at 3:07 pm

I am having a growing concern with regard to the logic being used by our current T2/Wild Bill government as to how to determine rates and methods of taxation.

Up until fairly recently, taxes were levied for a social purpose. That is, a government, elected by a majority of the citizens, would enact taxes so as to fund projects that would benefit the citizens. Taxes were for a purpose.

What I am seeing more and more of is “fairness taxation”. That being, a government will enact taxes, not because they have a purpose for the revenue proposed to be collected, but rather because they claim that a part of society is not being taxed enough, to make them “equal” to another part of society.

For example, people running professional corporations, following all of the rules and not doing anything illegal, are taxed very heavily, so that their incomes can be reduced to the incomes of people working in less skilled professions, for the purpose of making everyone equal.

In other words, our government is using taxation as a “social weapon” of sorts, targeting individuals who earn more money than average, in an attempt to reduce their incomes down to be more similar to those who earn less.

The grounds of the tax collection are not to obtain revenue for social programming. The grounds are to reduce certain people’s incomes.

They tried this in Cuba. It worked. Everyone earns the same. A doctor makes the same as a cab driver. Then the resort industry came along. People started tipping hotel maids and barkeeps and servers, in Cuban convertible pesos. One convertible pesos is worth around $65,000.00 regular pesos.

The result is that if you tip your barmaid in convertible pesos while staying at your Cuban resort, you have just paid her what an average Cuban doctor makes in a year.

The results of this sort of “income equalization through taxation” are catastrophic. First thing that happens is “brain drain”. Those who can leave, do.

That is followed by people simply deciding not to work. Why go to work, earn a high income and then pay it all to the government? Might as well just stay home.

The other problem I see is that more and more of our tax money is simply being given away to T2’s socialist causes. There will always be an endless number of impoverished individuals living on this planet, and a lot of them will be women and girls.

However, it is simply not possible to help them all, by taxing us all into poverty and then giving our money to socialist organizations run by family friends.

At any rate, that is my rant for the day.

#111 NoName on 08.14.18 at 3:57 pm

#97 IHCTD9 on 08.14.18 at 11:49 am

Immigrants and Crowds and Direction.

Percent
6.5 – negative networth
8.1 – less that 8k
6.7 – 5k-15k
6 – 15k-30k – if they spend 1/2 better off than 1/4 of cdns
3.8 – 30k-50k – avg imigrant better of on start than 31% of cdns
6.4 – 50k-75
4.5 – 75k-100k
7.3 – 100k-150k
10.7 – 150k-250k —- avg ntwh Ontario 230k, 190k avg netwh Can
16.3 – 250k-500k
13.9 – 500k-1M
9.8 – 1M+

So we know one 5th is poor as i was when i came, now question is can someone use higher math that i can process and extrapolate numbers for 1st 5th. Its not that immigrants are pushing a price up its lack of transparency, me thinks…

interesting two videos on selective misrepresenting crowd size, and crowd movements. gets very inserting near end, you can see black sheep finally caving in…

Quick Tips: Make a Crowd With Only A Few People!
https://www.youtube.com/watch?v=e1MJOQfP4TE

crowd flow are just for some simple mathematics.
https://www.nature.com/news/mathematical-time-law-governs-crowd-flow-1.16385

Bonus video from lone nut to leader, but having two fat dudes makes a momentum and take all perceived or real risk away.
https://www.youtube.com/watch?v=hO8MwBZl-Vc

all video under 3min.

#112 jess on 08.14.18 at 4:06 pm

The $4 Trillion Answer to Why Turkey Is Rattling Wall Street Banks and …
wallstreetonparade.com/…/the-4-trillion-answer-to-why-turkey-is-rattling-wall-street-b…
‘We are already seeing some signs of contagion,’ says Nilgün Önder
structural weaknesses – short termism sound familar? president of turkey blames foreign conspiracy undermining confidence …
independence of central bank is being questioned
CBC Radio · 28 minutes ago

short term financial inflows integration
from 2003
turkish banking crisis
http://henryckliu.com/public_html/page86.html

#113 Lee on 08.14.18 at 4:33 pm

#104 Karl,

If two people earn minimum wage in Ontario they will earn just above $60,000 a year almost tax free. They will probably receive $10,000 a year per child in one form of family benefit or another. If you live in the GTA this might be tough. If you live just outside the GTA, a family of four can live on $80,000 a year since it is roughly tax free. This does not include part-time work and OT. It also does not take into account one of the two making a little more than minimum wage. Of course, as usual, things get a little dicey when the woman stays home to take care of children for 12-18 months a child. I didn’t say it was easy.

Two people working full-time at minimum wage with one child will spend $1,500 a month on daycare, or 30% of their gross income. Add in food, rent, transportation, clothing and kid stuff and there is nothing left to save, invest, to put side for education or retirement. Yes, easy street, Lee. – Garth

#114 Lee on 08.14.18 at 5:20 pm

#113

Who the heck said it was easy? I think I made perfectly clear, not me.

#115 Garth fan on 08.14.18 at 5:48 pm

Wouldn’t the equity in the home also count as part of the guy’s net worth? So $355k is an under-calculation.

Included. – Garth

#116 Where's The Money Greedo? on 08.14.18 at 5:54 pm

Re: #89 Remembrancer on 08.14.18 at 11:10 am
#59 Where’s The Money Greedo? on 08.14.18 at 12:13 am

What makes you think the missing points on the books are a tax break?

Regardless, the information they’re mining from you and the time you are spending even giving them more verifiable information to get points is vastly more lucrative to them…
++++++++++++++++++++++++++
They’ve had this info since I joined so I don’t give them any more than they have. What extra info would I be giving them that they don’t have already, unless they want to mine how utterly pissed I am at them and am going to make their world as crappy as mine by phoning and getting my points.
Don’t you think that NOT paying out $20 million/month is incentive enough? The tax evasion could be the cream.
Better check your account if you have one, but be quick, they only allow you to go back 45 days. Tick tock.

#117 Where's The Money Greedo? on 08.14.18 at 6:10 pm

Re: #110 Ace Goodheart on 08.14.18 at 3:07 pm
Concur to your rant for the day….
+++++++++++++++++++++++
government of the people, by the people, for the people …

-government of the people- the people controlled by the background button pushers, oligarchs

-by the people-who are connected to the scum in the background

-for the people-see # 2

#118 Sus on 08.14.18 at 6:51 pm

#60 acdel
#80 Renter in Burlington

Why do you automatically assume that because I support Kat’s comments that I don’t work outside the house? I’ve been on both sides of the fence, just because one person is working making money doesn’t mean the other is not working and therefore should not have an opinion on financial decisions!

#60 Acdel
not only are you wrong about me not contributing financially to the household, you’re a prime example of the Neanderthal mentality pervading this blog.

#119 Sus on 08.14.18 at 6:58 pm

#79 crowdedelevatorfartz

“Stop being the “unpaid housewife slave martyr” and read what is posted before exploding in outrage at the “neaderthals”.
She doesnt work, therefore she doesnt contribute ANYTHING financially. Thus she shouldnt have been the major decision maker on possibly the most important financial decision that married couple has made.
But, whatever.
You go girl. Hell hath no fury like a housewife scorned.”
===================================

Yet another example of prime Neanderthal mentality.

#120 Linda on 08.14.18 at 7:19 pm

‘Kat’ – I saw the comment which said ‘go back to being ‘retired”. I can understand your indignation that your being at home equates not working. Nothing could be further from the truth.

You also cite having an equal share in the big decisions. I for one agree, but would point out that in the case Garth cited there is already a perfectly respectable, affordable home that will be paid off in a reasonable timeframe & that ‘Arthur’ is trying to avoid the debt trap that the purchase of that sparkly new toy would engender. In a reasonable discussion between equals, the strategy of the stay at home partner getting a job to help pay for that upgrade is not devaluing the work they do at home. It is a recognition that more effort & money will be required to ensure the financial security of the family unit IF they do undertake to purchase that new home. I would add that comments including mine saying ‘get a job’ come with the expectation and belief that of course the wife can find work – because she of course is educated, capable & therefore would make a good employee.

Here is the thing with equality. Equal pay for equal work et. al. also comes with equal responsibility for the family finances. That means paying for half of any upgrades or finding ways to upgrade what is already in place w/o breaking the piggy bank. As for Arthur, if the wife does get paid employment he will in turn need to do more at home, as his wife can not be expected to work all day & still do all the chores around the house. Anyone who suggests that is fair does indeed need a swift kick in the butt.

#121 crowdedelevatorfartz on 08.14.18 at 8:13 pm

@#119 Shushhhh
“Yet another example of prime Neanderthal mentality.’
++++

Yet another example of hormones overriding reading comprehension.

#122 Jmr on 08.14.18 at 10:18 pm

Thank you Kat and Sus (and several others more subtly) for your comments supporting the value of childcare and its important input into a households value and wellbeing. Deciding to do it yourself instead of paying someone else to raise the children you chose to bring into this world is as legitimate and responsible a choice as any. Children’s needs are not all met by money but often by time. And yes since time is money there is always a compromise to be made. Childhood is a little different than choosing not to eat out or to drive used cars – you can’t just do it later when your retirement is secured. This gets complicated since a career has similar time constraints.

While I have gleaned alot of sound advice and ideas from the comments section, sometimes i wonder if the exposure to so much woman bashing of sahm’s (by both men AND women)is worth those gems.

#123 Sus on 08.15.18 at 12:23 am

#121 crowdedelevatorfartz
@#119 Shushhhh
“Yet another example of prime Neanderthal mentality.’
++++

Yet another example of hormones overriding reading comprehension.
,,,,,,,,,,,,,,,,,,

@elevatorfartz: Your response once again proves my point; too many neanderthals who rely on stereotypes and insults in this blog.

#124 Oft deleted much maligned stock.picker on 08.15.18 at 5:12 am

There are truths that Garth can’t handle for personal reasons…..it’s doesn’t make the facts less true. I believe denial is destructive….look at Sweden for ex.

You are an ugly, hostile, vulgar person. What really sets you apart is the incessant, virulent ad hominem aspect to every post. For that, and not any argument proferred, you will continue to be obliterated. – Garth

#125 Linda on 08.15.18 at 11:32 am

I decided to try to figure out the value of a SAHM (stay at home mom) if those services were being paid for. Here is what I found after a few minutes of research. Basic child care costs range from a low of $1.18 per hour (Montreal) to a high of $7.99 per hour (Toronto). Average time spent in child care is 35 hours per week. Of course child care does not stop after 35 hours, but for comparison purposes I will use the 35 hours per week average. Home cooked meals cost $12.75 to prepare on average; house cleaning costs range from $50 to $90 per hour for a crew of 2 people; grocery delivery averages $9.95. So let’s see – we’ve got child care, food prep, grocery shopping, house cleaning (incl. laundry) per hour costs. The hourly cost for providing stay at home mom services is $52.28 per hour based on the following: per hour house cleaning @ $25 per hour; per hour child care @ $4.58 per hour; per hour meal prep @ $12.75 per hour; per hour grocery shopping @ $9.95 per hour. Now, some would argue that grocery prep & meal prep costs are overstated because one is not cooking a meal/grocery shopping every hour of every day. But any overage there is handily taken care of by the fact child care continues for as long as the child is at home, so SAHM’s do far more than 35 hours a week child care. Also note I used the absolute lowest per hour cost for house cleaning, not an average as I did for child care services.

If we use 1820 hours per year (the average number of hours for full time employment) the annual value of SAHM service is $95,149.60 per year. While I did not look up the average salary of second class power engineers, I believe the value of a SAHM services are at least comparable to what ‘Arthur’ would be earning. Even so, I still believe that if they decide to purchase a much more expensive house that the only reasonable course of action would be for his wife to get paid employment to ensure that the increased debt load would not be a threat to the finances of the family unit. If the children are old enough to be in school full time the cost of child care might not add to that debt burden, but that presumes that Arthur or his wife would be able to arrange to be home by the time the children get home from school.