Apology

I must apologize to the 40-year-old who wrote to this blog yesterday for free financial advice. I failed to understand she is, well, sensitive. Special. And I was, like, so unfair. Apparently it is no fault of hers that she lives in a $200,000-per-year household without investments, real estate, savings nor a budget. It was crass, paleo and crusty of me to miss the fact the letter was intended not for guidance and corrective advice, but to elicit admiration and approbation. For that, I am sorry. An email full of gold stars and emojis is on its way back.

To be totally fair, and avoid the legal action I am sure is coming from BC Human Rights and Anti-Boomer Commission, here is her letter (and some comments):

“While I was initially excited to read the advice of someone I respected, and leverage it to make positive changes in my financial life, my feelings quickly melted into disappointment and hurt as I read through.

I certainly expected a certain dose of acerbic ribbing — I’ve been reading your blog long enough to know the tone. But I also expected it to be accompanied by useful advice, beyond “put away 20% of your take-home, save $2 mil for retirement”. Google could have given me that information, without the public flogging.

– Is that $2 million per person, to for a couple, at minimum?
– Does that $2 million included projected CPP/OAP earnings?
– Do I still need $2 million if I have a home that is paid off at retirement?
– Does that 20% take-home investment include the RESP contribution, or is the RESP contribution on top of that?
– How much should one ideally have socked away in an RESP for each child by their 18th birthday?
– How much emergency cash reserve should I have in the bank, and should I be addressing that first, or alongside my retirement contributions?

If you could re-address my questions in a constructive manner, it would be very helpful to me, and probably a lot of others, too. I can’t be the only financially illiterate almost-40-year old reading your blog.

And as a side note to you and your evil Comments trolls, the $10,500 monthly earnings I stated are recent — within the last two years. Prior to that, we were earning half that amount, and paying $2,000 in rent. Not a tonne of savings opportunities there. And not wanting to feed my kid processed food or have them living in a neighbourhood scattered with used hypodermic needles, where crackheads haunt transit stations and doorways (AKA “the affordable parts of Vancouver”)… does that really make me a “hedonistic, self-centred wombat”?

If I were you, I wouldn’t be sleeping well at night either; pinning a scarlet dollar sign to a well-meaning fellow citizen, just to set an example/get some laughs — not good karma. – Late to the Investment Party.”

The answers, Late, are easy to provide (and kinda obvious). Two mill for a couple will provide an income stream to replace about 60% of what your household brings in now. Seeing as you save nothing, that’s probably still not enough. No, it does not include CPP. Use that to buy kibble for your next Frenchie. OAS will be clawed back completely (and may not exist in 25 years).

A paid-off home in Vancouver in two decades with your spending habits? In your dreams. No, not included. As for the RESP, it’s only $2,500 a year and for that you get a 20% government grant. One less latte a day, babe. And how much education money you have depends on future unknowns. Since you have nothing now, just start. As for emergency cash, none. That’s what a LOC is for. Besides, you’d just spend it.

Your problem isn’t strategy or knowledge, it’s discipline. Budgeting. Saving. Plus attitude. I know it’s hard to believe, but there are people who scrape by in $2,000-a-month condos and somehow avoid being mugged in transit stations and doorways. Apparently not everyone shops at Whole Foods Market, and yet they still manage to keep their teeth and fend off child mortality.

Regarding your greatest fear – becoming a responsible adult (and mother) only to eventually die without partying enough –  how is that not being both self-centred and hedonistic?

Finally, as for being a wombat, that’s an affectionate term for a marsupial that poops in cubes. Seriously. It loves being noticed.

194 comments ↓

#1 dakkie on 08.21.18 at 4:57 pm

Australia Home Prices Falling as Sydney Drops 7%! Australians In Most Debt EVER IN HISTORY!

http://www.investmentwatchblog.com/australia-home-prices-falling-as-sydney-drops-7-australians-in-most-debt-ever-in-history/

#2 Stormy Dhalandar on 08.21.18 at 5:05 pm

My advice to this woman is buy $5k worth of lottery tickets each month. Then you can retire with $90m. Hey you might win something in 40 years.

Good Karma back to you hun.

#3 the ryguy on 08.21.18 at 5:06 pm

That mocking tone of french bulldogs best be in jest Mr Turner. I assure you the frenchie mafia is not to be messed with.

#4 $moking John on 08.21.18 at 5:07 pm

I don’t care, do you?

Women have it easy in Canada. All they have to do is get good grades by only enlisting with male teachers, after that, they then go off to working under the table at Keele & Finch (you old farts know what I’m talking a-boot), and then after pocketing their six-figure earnings, they enter their late 30s and early 40s looking for a beta provider, which will later end up in divorce after 10 years of paying off the mortgage.

Life is easy for a Canadian woman. And before you lefties and do-gooders accuse me of the cardinal offense of misogyny when I refer to Canadian women, I refer to those who were born, raised and live in a life of privilege.

I’m not against women who are disadvantaged, such as minorities and First Nations, and NO, I’m not donating anything to the Trudeau or Aga Khan foundation because non-profits rip people off and are only tax avoidance outlets.

#5 HeySteveO on 08.21.18 at 5:11 pm

Good lord… I feel like if you’re going to write in to Garth for FREE advice you better be able to laugh at yourself. Good on you Garth for giving her a couple extra zingers today.

In fact, to get through life, best not to take things to seriously. Teach yer kid that

#6 Graeme on 08.21.18 at 5:11 pm

Good questions but why not invest a few hours into leaning the Future/Present value formulas and answer these questions yourself in Excel? Beats being ribbed by Garth in front of fellow Canadians of above average intelligence. My own independent assessment (from Excel 101 wizardry) was 2.4 mil. Quite close. I guess we need some victims to write in for entertainment value though! :)

#7 Ronaldo on 08.21.18 at 5:14 pm

Omg…………….unbelievable.

#8 Stan Brooks on 08.21.18 at 5:21 pm


Your problem isn’t strategy or knowledge, it’s discipline. Budgeting. Saving. Plus attitude. I know it’s hard to believe, but there are people who scrape by in $2,000-a-month condos and somehow avoid being mugged and raped in transit stations and doorways. Apparently not everyone shops at Whole Foods Market, and yet they still manage to keep their teeth and fend off child mortality.

Some more ignorance, we are sooooooo good at it.
We have epidemics of diabetes, cancer, autism.


https://cmha.ca/about-cmha/fast-facts-about-mental-illness

By age 40, about 50% of the population will have or have had a mental illness.
Schizophrenia affects 1% of the Canadian population.
Anxiety disorders affect 5% of the household population, causing mild to severe impairment.
Suicide accounts for 24% of all deaths among 15-24 year olds and 16% among 25-44 year olds.
Suicide is one of the leading causes of death in both men and women from adolescence to middle age.
The mortality rate due to suicide among men is four times the rate among women.
It is estimated that 10-20% of Canadian youth are affected by a mental illness or disorder – the single most disabling group of disorders worldwide.

To eat healthy/organic you need 3 k per 4 people family per month and Whole Foods is good but not enough.

https://www.bbc.com/news/world-us-canada-45152546

https://www.amazon.com/POISON-FOODS-NORTH-AMERICA-navigating-ebook/dp/B06XS4Y6H2


https://www.ecowatch.com/15-health-problems-linked-to-monsantos-roundup-1882002128.html

ADHD, Alzheimer’s , Autism, Diabetes,…

enjoy the ‘tasty’ pesticides.

#9 anne on 08.21.18 at 5:22 pm

This woman mades me sad.

#10 LMFAO on 08.21.18 at 5:23 pm

cmon Garth, all she is asking for is complete answers to all her questions , fo free. AND , of course, without the attitude….rather a hug

easy peasy

#11 WIN not Lose on 08.21.18 at 5:24 pm

Garth
Is it time to allow posting pictures in the comments?
Here’s a link to a Scarlet dollar sign for our sweetie.
http://bit.ly/2w4ei9D

#12 Jungle on 08.21.18 at 5:24 pm

The piece she’s looking for is tracking your spending, learning your habits (and how much they cost), then learning how to save money on EVERYTHING. Use your savings to invest, pay debt.

First step: Become frugal and learn/ research / google how to save money on EVERYTHING. This is your first step.

Price matching-shop grocery flyers every week
Buy at discount grocery stores
Plan and cook all meals at home. Pack a lunch
Limit alcohol spending and eating at restaurants. Quit smoking asap. No lottery either- it’s a waste.
Buy netflix and cut the cable
Shop around for insurance
Use pay as you go phone, make calls from work, use google hangouts for free.
Only buy things you need etc.
Use credit card rewards, free banking,
Workout from home
One car only or no car, take transit/ uber
Ride your bike
Go to parks, enjoy picnics, go kayaking, library, enjoy nature, etc

You might have the potential to unlock 1-3k month savings, EVERYTHING adds up. Little as $25/ month = $300 year. There’s a RESP contribution!

Second step: Get rid of consumer loans, credit card debt ASAP.

Third step: Put cash flow in balanced portfolio, max RSP and TFSA, RESP if you can make extra debt payments.

You should be saving $5k month with your salary minimum or 50% of your take home pay. That is very attainable once you become savvy and mange your spending and money better.

#13 conan on 08.21.18 at 5:31 pm

Wow someone got schooled. Not everyone is a paleo wombat.

A lesson to us all.

#14 Brett in Calgary on 08.21.18 at 5:33 pm

These folks are everywhere. I was just in a meeting (healthcare support – analysts) and you should have heard the bitching about “no raises”. Yeah it sucks and its been 5+ years frozen, but guess what? Calgary has near 8% unemployment and Alberta runs on oil. A raise is not happening, nor should you expect it. So – adjust the other side of the ledger.

#15 Wrk.dover on 08.21.18 at 5:40 pm

Go to Jamaica and see lives lived on $1 per hour.

Then slap yourself!

#16 Angie on 08.21.18 at 5:42 pm

I don’t disagree with her. Garth spent 300 words tearing a new one on a person who, for all intensive porpoises, pretty much admitted she was behind for her age. If you wanted canon fodder I’m sure your mail bag has some much better examples of idiocy that we could all have a crack at at their expense.

#17 Lost...but not leased on 08.21.18 at 5:47 pm

Wombat is a marsupial that poops in cubes? ….aka sh*ts bricks ?

The stuff you can actually learn here…(invisible emogees)

#18 Free on 08.21.18 at 5:49 pm

Sorry, Miss Late,

But after getting FREE advice from Garth, it’s not the most polite thing to express your dissatisfaction on said advice.

After you pay for it, you get to vent your disappointment.
Heck, you could even try to tell him “I want my money back!”

#19 yvr_lurker on 08.21.18 at 5:49 pm

I think a key issue is that they live in YVR and up until recently have been living on a much lower salary of take-home 5K per month; very difficult to save much with that sum and paying 2K per rent. Try living in YVR and see for yourself. I was largely in the same boat when I was in my late 30s having spent years getting an education, paying it off (no family plan here) and then rising slowly at work. Situation is so much better now 17 years on. However, now with a much improved income and the full-on realization that time is ticking, I wish them the best in making good financial choices and being disciplined to save for their kid. Having roughly 100K for each child in an RESP by the time they are 18 is a good number (this is almost where we are at now with ours). Then, hopefully, the kid will not spend the first 10 years post-education trying to pay back big student loans even if studying (hopefully) in a program that will afford good opportunities in the end. The only people we know in YVR who have done super-well financially at an early stage (20s and 30s) are those who are “gifted” large amounts from the family money tree, or who had no student loans or debts. Makes a whopping difference in being able to “compete” in this (largely) dreadful city.

#20 Zapstrap on 08.21.18 at 5:49 pm

At least she knew better than to ask for your free advice on a Thursday … like the last one as I remember.

#21 Bk on 08.21.18 at 5:50 pm

To her defence…. I’m 37 been making over $100000 a year for almost 10 years (most of it goes to taxes and a great pension), did not buy a place(like Garth said) and have invested in a balanced portfolio (like Garth said). Do not spend much money, drive the same $5000 truck for the past 12 years and renter. How do I fair amongst home owners in Vancouver my age. Quite poorly. The money i have saved and invested (all garths advice)is nothing compared to realestate gains. Therefore if you live in Vancouver, have a good money making job, did not inherit anything nor buy realestate , chances are you are fighting to make ends meet. For all the rest of you Canadians even the ones in Toronto, you have it far easier than people out here in the West coast. Toronto looks cheap in my eyes

#22 COmbat Wombat on 08.21.18 at 5:51 pm

wait…I like Wombats, especially the Hodaka

#23 Reality is stark on 08.21.18 at 5:56 pm

It is not her job to be financially responsible.
That is her husband’s job and it is enforced by our family courts.
If there is any lesson to be learned in life this is the most important and never forget it.

#24 islander on 08.21.18 at 5:57 pm

#12 Jungle
“The piece she’s looking for is tracking your spending, learning your habits (and how much they cost), then learning how to save money on EVERYTHING. Use your savings to invest, pay debt. ”

Yes, use Excel spreadsheet (or ?) to track ALL expenses.
At the top make columns for each category:
Rent, cars, baby, clothing, health, bank expenses etc.

Ask for and keep all receipts. You have to track everything so you can complete the spreadsheet realistically.
– plus you’ll see the amount of tax you are paying everytime you make a purchase.

I’m starting to think ‘jar lady’ here, but honestly many people have no idea about ‘where the money goes’.
They just know they don’t have enough!

And Garth is right:
‘Now you’ll be lucky to survive anything – job loss, sickness, marriage breakdown. To think you’re immune is arrogant and wrong. You need a plan, a budget, routine savings, an investment strategy and discipline to salt money away for the kid plus the long years ahead.”

#25 crowdedelevatorfartz on 08.21.18 at 5:58 pm

@ Late to the Party

As I said yesterday.
MAJOR Lifestyle changes.
Wants vs Needs.

Do you NEED a $100 pedicure?
Do you NEED $200 shoes?
Do you NEED $5 Starbucks every morning?
Do you NEED a new car every 5 years?
Do you NEED a “get away” vacation every year?
Do you NEED designer baby clothes?

Or do you just WANT all those things ’cause they’re fun to have…..

Wants vs Needs….

Its up to you.

#26 Alberta Ed on 08.21.18 at 6:01 pm

You can buy quite inexpensive, healthy, unprocessed food without shopping at Whole Foods — in fact, you can even bake your own bread (omg!!!). You don’t need over-priced “organic” food, either; plants don’t care where their nutrients come from. You can make wine or brew beer for a fraction of the bottled stuff (which will leave room for the occasional, essential bottle of Scotch). You can easily track expenses with a spreadsheet like Excel to get your budget organized.

#27 Westcdn on 08.21.18 at 6:02 pm

Well, let’s get real with where we are. I just go with what I believe. I want l want to improve things for the living while I am alive. My father told me a joke back in the early 60’s. A husband was told to dress for a Halloween costume party by his wife. He came out dressed normally with a potato hanging in front of his privates. WTF! I am going as a dick tater. Erdogan of Turkey is another piece of work.

I heard being a jerk helps to becoming wealthy but that path can make you a bigger jerk.

Things are beginning to shine on me after a dreary period. I still have a long ways to go to make up lost ground. Karma, I do have lot to say but my beliefs are not yours.

I really like the feature of TFSA’s where my withdrawal are added back to my contribution limit. Guess what I am doing.

Amazon Echo Dot 2 was on sale over last weekend. I bought a couple. The things are amazing for potential which I am testing. I even got an “oh Dad” from my eldest daughter which always lightens my heart.

Trump wants a cheap money Fed – let’s see who the adults are. Just to annoy me is a report of how much power/money is being concentrated. 3 people being worth more than 50% of US plebs appalls me and I think Canada is similar. These super citizens may have better morals than Trump but I am sure they are covering their asses first. http://theirrelevantinvestor.com/2018/08/09/the-scapegoat/ – a tale of servitude.

#28 Gravy Train on 08.21.18 at 6:06 pm

It’s not Trump who’s draining the swamp; it’s Mueller. :)

#29 SmarterSquirrel on 08.21.18 at 6:07 pm

You have to save a lot more than you think you do to retire. Time to buckle down and stop spending on things you don’t need. Save save save and invest. I’ve retired with a passive income stream that covers all my expenses and then some. I’ve put up a spreadsheet to help you figure out how much to put away. Don’t forget about inflation when you’re trying to figure it out. If you only save enough in today’s dollars, it might not be enough by the time you retire.
https://smartersquirrel.com/how-much-do-you-need-to-retire

#30 Danny on 08.21.18 at 6:10 pm

To the 40-year-old who wrote to this blog yesterday for free financial advice:

Garth is trying to educate us.
It’s tough for Garth when many of those commenting have a strong “bigot ” personality and have old loyalties rooted in somekind of hatred towards others especially immigrants and other races.

That is why Garth carefully reads the comments and needs to “delete “…who go too far and offend others.
We need to be tolerant of each other…while we make universal opinions…not personal attacks.

I don’t know how Garth does it?

Obviously he is very knowledgeable about financial policies that impact the ordinary person in a way that us rookies in this field are miles behind.

And yet Garth allows us to grow in this field if we open ourselves to fair and honest opinion ( and sometimes tough realities) derived by facts from sources that Garth and Ryan trusts are honest and well documented.

Remember most of us are mere students who are slowly being enriched by Garth because the world is full of those who want our money and our political support to benefit them and their real financial backers, who live in the political closets of our nation…..the greedy using government to make themselves richer.

Ontario is now in this dark autocratic cloak.

No democracy between elections….only dictums.

At least Toronto City Council is revealing that democracy continues between elections and the public will not give up on democracy…..and big real estate developers who want to control City Council need to be exposed.

We are suffering from the drawback of ” first past the post ” political system and the division of votes by having too many political parties resulting in small majorities in individual ridings that result in a majority government in Ontario who in actuality represents a minority of the electorate.

#31 HT on 08.21.18 at 6:12 pm

Go to your safe space, Ms Late. Some of us actually appreciate an honest diagnosis. Further, you think GT will spare your feelings at the expense of our entertainment?? That would be… self centred.

#32 KLNR on 08.21.18 at 6:16 pm

@#4 $moking John on 08.21.18 at 5:07 pm

dude, you are a misogynist straight up.
Don’t need to be a lefty or do-gooder to see that lol.

#33 The Wet One on 08.21.18 at 6:19 pm

So…

I’ll ask Garth for more again here in the comboxes, because that’s how I roll.

Still looking for homes. Got some deals in the hopper. Gotta decide which one to jump on.

Better to be on the edge of town, 25 – 30 minutes from work, in a brand new house with some landscapping and fences and decks to be built, or in a new build, with everything built to our specifications, or in the urban area, in a souped up semi-detached on a somewhat busy street (but with triple pane glass and extra soundproofing) and gorgeous finishings throughout.

They all cost the same amount (though one is an upgraded spec house the builder is trying to get rid of at a price that’s $45K under the new build price and that’s before upgrades or so I’m told).

I can go either way on this, though I’m pretty sure I’ll do what my wife wants (I kinda want the cheap house on an expensive street, but y’know. Happy wife = happy life and all that).

What to do, what to do?

Help an Albertan out here, would ya? Edmontonian to boot, where chaos and insane housing prices aren’t the norm. All the proposed properties are 3.3 times household income. Not great, but not Toronto prices, and nowhere near Vancouver prices.

#34 dr talc on 08.21.18 at 6:22 pm

Stan wrote-
By age 40, about 50% of the population will have or have had a mental illness.

—–
That is likely a fake stat including false diagnoses.
Also, there is a link between anti depressants and suicide, always ignored by the MSM:

Brad Delp, Jerry Hadley, and Danny Gatton come to mind

#35 Sylvain on 08.21.18 at 6:28 pm

Here you go Garth. I thought that you might like this.
https://www.ctvnews.ca/canada/burned-down-house-in-vancouver-listed-for-nearly-4m-1.4062003

#36 IHCTD9 on 08.21.18 at 6:30 pm

#5 HeySteveO on 08.21.18 at 5:11 pm

In fact, to get through life, best not to take things to seriously. Teach yer kid that
——-

Actually, the kid is going to teach HER that, and probably a lot of other things too.

#37 mike on 08.21.18 at 6:32 pm

In other news, last weeks Economist reports Vancouver real estate as being over-valued by 65 % based on historical data comparing home prices to median income.

#38 Missihippi on 08.21.18 at 6:34 pm

Years ago I worked at a tourism centre in Canada’s most pooched province. We didn’t sell anything, but he had tons of free brochures, coupons, maps and great advice (!) about the local sites.
Now and again, the people who came in would end up complaining about the brochures, maps, etc. I have never figured out how anyone could complain about something that is free!!
To the letter writer: take responsibility for your actions that led to your current financial position. And please don’t bitch about free advice.

#39 FOUR FINGERS WATSON on 08.21.18 at 6:35 pm

OAS will be clawed back completely (and may not exist in 25 years).
………………………..

Clawed back incrementally: yes. Eliminated: no way, it would be political suicide. Politicians get elected by giving away free stuff, not by taking away long held “entitlements”.

#40 akashic record on 08.21.18 at 6:36 pm

Google could have given me that information, without the public flogging.

—-

There is no completely free advice.

On Google your privacy is the mandatory price to pay, here the much less pricey, anonymous public flogging may apply. So far everyone seemed to survive it.

#41 JSquared on 08.21.18 at 6:44 pm

Okay, I’m still scratching my head on this one. What the heck are you spending your cash on? If two years ago you were “only” pulling in $5K/mon, that’s a pretty comfortable life. I net $3,700/mon, and still manage to invest 40% every month, have 6 figures in the bank, live in a nice apt in a great neighborhood (Fairview), walk to work, enjoy good, healthy meals & wine at home…oh wait a minute…I think I just figured it out. Priorities! Yeah, that must be it. That, and a lack of entitled princess syndrome. Now you’re pulling in over $10K/mon and still can’t figure it out? Egads, again.

#42 X on 08.21.18 at 6:48 pm

In all fairness, given that they only recently started earning this much, it really should be easy to start saving big time. They can continue to live on half, which is what they had been doing, and save the other half….that should help them max the TFSA/RESP’s annually, and start to build the savings.

#43 IHCTD9 on 08.21.18 at 6:56 pm

#21 Bk on 08.21.18 at 5:50 pm
To her defence…. I’m 37 been making over $100000 a year for almost 10 years (most of it goes to taxes and a great pension), did not buy a place(like Garth said) and have invested in a balanced portfolio (like Garth said). Do not spend much money, drive the same $5000 truck for the past 12 years and renter. How do I fair amongst home owners in Vancouver my age. Quite poorly. The money i have saved and invested (all garths advice)is nothing compared to realestate gains. Therefore if you live in Vancouver, have a good money making job, did not inherit anything nor buy realestate , chances are you are fighting to make ends meet. For all the rest of you Canadians even the ones in Toronto, you have it far easier than people out here in the West coast. Toronto looks cheap in my eyes
—————

I don’t know about you, but sitting where I am; you’ve only got one actual problem.

I fare awesome against homeowners my age for some reason.

Now, if you watched some guy standing there smacking his head against a wall like Dobby the house-elf, while listening to him complain about how much pain was involved with this activity; would you feel inclined to advise him to stop doing it?

#44 Peter McLean on 08.21.18 at 7:02 pm

Man. I would kill to have a take home of $10,500 a month. I would literally have no worries as all my bills would be paid and I would have crazy savings. I definitely wouldn’t be whining about it like the wombat lady.

#45 Steve W on 08.21.18 at 7:04 pm

“… my financial life, my feelings quickly melted…”

Feelings and financial life in the same sentence, oh, boy…

Garth, you rock!

#46 Dan on 08.21.18 at 7:07 pm

Some nerve on that wombat.

A completely clueless individual not asking, but demanding, free detailed advice from an internet blog. What did she expect? A 10-page plan for her life?

Whatever cave she crawled out of, she crawl right back. Want a 10-page hire an advisor, if she can even find one willing to educate her 4-year old self.

#47 WUL on 08.21.18 at 7:08 pm

#33 The Wet One on 08.21.18 at 6:19 pm

“Help an Albertan out here, would ya? Edmontonian to boot…”
AB, AB, AB,…

I’ll try. Tradition in these parts. I worked and lived in Edmonton. Now in the deep south, Calgary. I like Edmonton. The city has attributes. That don’t matter here. Labour Day Classic – Stamps/Esks – I’m neutral on the outcome.

I will not vouch for the validity and fidelity of this article. It is about housing in Toronto and is somewhat dated but it give you some notions to ponder. The silly idea of starting in your car at your place of work and driving until you can afford to buy. Seems some of fellow Canuckleheads do that. I don’t. I’m very fortunate to live in a ‘hood in Calgary that is real dandy for public transit. My wheels stay in the garage. Saves serious coin. I’m partial to seeing people going back and forth to the coal face to swing the nine pound hammer. Reminds me of my good fortune.

https://www.pembina.org/reports/rbc-pembina-home-location-study.pdf

Nice to see the Fort Mac native Scotty Upshall sign a pro tryout contract with the Oil.

Best,

WUL

#48 FOUR FINGERS WATSON on 08.21.18 at 7:09 pm

You might need more money in retirement than you think. When i retired 9 years ago my after tax “pension income” was the same as my after tax take home pay while working. When i was working i always had lots of money left over at the end of the month cuz i never had time to spend it. In retirement i had a lot of time to spend it cuz having fun costs money and nothing is worse than BOREDOM. And inflation pecks away at you, even at 2% hahhaha. I am ok cuz i can make adjustments as to how much income i take every month but inflation can be a killer. I am in Asia at the moment and i can tell u that inflation has happened here too over the last decade. If I want to have fun 60% of my working income would not be enough even tho I am debt and mortgage free. Boredom and inflation are the enemies. Fear them.

#49 Unhinged Trader on 08.21.18 at 7:11 pm

Hey Late, have you heard of Bitcoin or Ethereum?

These two are probably the only investment vehicles remaining for you, that will allow you to “make it” at such an advanced age.

I would deploy $10K in a mix of both, evenly split, though I think Ethereum has the higher upside potential.

#50 Trumpocalypse2018 on 08.21.18 at 7:14 pm

Understand what is happening tonight.

An astonishing legal double-blow to Trump today has put him into his bunker.

Major fabricated distractions, including war, are now right around the corner. He has no other options.

PREPARE.

#51 Stahom on 08.21.18 at 7:18 pm

The curious spending behaviour of most of my middle age peers is boggling. Paying for adult children’s cell phone data plan, eating out constantly, vehicle upgrades (premium brands), etc. The younger gen (nieces/nephews, friend’s kids) financing new vehicles (7 year terms, gulp), phones, fashion, etc. It’s hard to earn a buck, why are people so loose with the spending? I guess not everyone had a prairie Granny who raised her family in the 1930’s, Dad’s mother, who subtly dispensed the merits of living modestly and saving for the inevitable financial challenges in our lives. Valuable beyond measure.

#52 IHCTD9 on 08.21.18 at 7:25 pm

#4 $moking John on 08.21.18 at 5:07 pm

———

All you have to do is make sure she makes more money than you. The pendulum swings both ways in Divorce Court.

All problems solved right there.

#53 crowdedelevatorfartz on 08.21.18 at 7:26 pm

@#116 BillyBoob
“Please give examples of how Canada has “rescued” anyone from the UK/Italy/Spain?”
++++
Apparently reading comprehension isnt your strongest point.
” I said IF the feces hits the fan…..”

And I was harkening back to the “Canadians of Convenience” in Lebanon of a decade or so ago when the Israeli army waltzed in and kicked Hezbollah ass while laying waste to half the countryside.
Suddenly there were thousands of dual citizens bitching at Canada to “rescue them”.

http://www.timescolonist.com/opinion/letters/canadians-of-convenience-can-be-expensive-1.23154637

#54 Yuus bin Haad on 08.21.18 at 7:28 pm

You can call me “lazy”; you can call me “stupid”; just don’t call me “Late to the Investment Party”.

#55 Dolce Vita on 08.21.18 at 7:38 pm

Well Garth, after reading her letter response, high time you read Ludwig Wittgenstein.

Even for you, the accomplished +/- 3σ of appreciated financial advice author has met his statistical outlier today (heteroscedasticity a bitch).

Feelings vs. Logical Reasoning…the latter always comes after.

Mars and Venus.

#56 Bytor the Snow Dog on 08.21.18 at 7:41 pm

I’m shocked! Shocked I tell you.

A woman can’t admit she’s wr-wr-wr-wrong.

No wonder younger men are stepping away from marriage in droves.

#57 yvr_lurker on 08.21.18 at 7:44 pm

#41 you spending your cash on? If two years ago you were “only” pulling in $5K/mon, that’s a pretty comfortable life. I net $3,700/mon, and still manage to invest 40% every month, have 6 figures in the bank…

——————-

sorry, calling BOGUS on this one. A little calculation shows that after the 40% saving, you have about 2200.00 month to live on. With rent about 1400+ per one bedroom in fairview, that leaves 800.00 per month for everything else…. indeed living high on the hog in YVR on that….. Give the lady a break…. she will hopefully go forward in the right direction, and no need to troll….

#58 LP on 08.21.18 at 7:46 pm

#16 08.21.18 at 5:42 pm

“intensive porpoises” – don’t you just love autofill?

Makes intents and purposes into so much fun!

#59 the Jaguar on 08.21.18 at 7:48 pm

My guess is ‘late to the party’ is a teacher or social worker. They are all horrible with finances. Sorry, but it’s true. Sold a condo only two years ago in what appears to be the lower mainland ( Hastings street reference) and only netted 20m? After debt was paid out? Must have been significant and likely not the first refinance rodeo.
What a whiner. And a narcissist. Get yourself together and take some responsibility for your current financial state.
And don’t blame Garth for being the messenger of truth. Look in the mirror instead. Bandit, you and the Jag takes turns tonight patrolling the perimeter……..

#60 Dolce Vita on 08.21.18 at 7:50 pm

#21 Bk

Stay the course.

You’ll have the last laugh in YVR. Sooner than you think.

#61 Linda on 08.21.18 at 7:53 pm

Regarding the take home of the almost 40 financial illiterate: if 2 years ago they were bringing home half of their current take home that would be $5,250 per month or $63,000 per year. Take away $24,000 for rent & that leaves $39,000 for all other expenses. I’m presuming this is a 2 car family, so let’s say $16,000 is spent there. Budget $1,000 per month for food – another $12,000 gone. That still leaves $9,000 so unless the monthly condo rent doesn’t include utilities there should have been some savings. That kind of take home should have easily allowed for at least $500 per month to be socked away for a rainy day & would still have left $3,000 for other expenditures.

While having a child is expensive, a monthly take home of $10,500 per month, however recent, should permit that couple to sock away at least $5,000 per month. Babies do not eat that much; the $1,000 per month grocery bill would at most be bumped up to say $1,500 per month to account for the plethora of diapers babies do generate. As for feeding baby organic, buy organic & slap those fruits/veggies in a blender so baby can eat raw, fresh vegan style if chewing isn’t in the cards as yet.

Bottom line is, with the kind of monthly net cited (albeit only in the past 2 years) this couple should have their TFSA’s maxed out or close to it by now, baby notwithstanding. They should also have no problems with maxing out the RESP for baby & once their TFSA’s & the RESP are at their current allowable limit begin to stuff cash into their RRSP’s to generate what will likely be a sizable annual tax refund. It won’t take long to top up the RRSP’s especially if any tax refund goes into the RRSP upon arrival. Once the TFSA, RESP & RRSP is fully funded (all invested as part of a balanced portfolio) their excess cash could then be split 50/50, with half continuing to build a balanced portfolio for future use & the other half (also invested for maximum growth) to be used for purchasing a house should they still desire to buy one.

Of course, all this means deferring the house purchase for a decade or more. Somehow I do not think our financial illiterate will be willing to defer the house & will use the child as the reason why a house must be purchased asap. Financial discipline vs. instant gratification? No contest.

#62 Shortymac on 08.21.18 at 8:00 pm

Wow, one letter writer is female andddddddddddddd all women are evil SJW after your paycheck. Ugh.

—————————————–
Advice:

1) Track your spending habits, review your bank and credit card statements weekly. It’s typically a death by 1000 cuts: lattes, daily lunches, shopping trips, video games, kickstarters, booze (my personal vice), etc.

2) You can easily do healthy and organic food on a budget, 1000s of blogs and websites can show you how. Grab a few pots and put them on the balcony.

3) I highly recommend Lois Frankel’s “Nice girls don’t get rich” to avoid the certain pitfalls

#63 LP on 08.21.18 at 8:02 pm

#34 dr talc on 08.21.18 at 6:22 pm
Stan wrote-
By age 40, about 50% of the population will have or have had a mental illness.

Dr Talc I used to work for a mental health foundation. Part of my job was to write the annual fundraiser letter to supporters and donors. In that regard I garnered statistics from clinicians and physicians before writing the thing.

The last year for which I wrote the letter, fully 1 in 5 Canadians were expected to experience some form of mental difficulty. That’s 20 percent. In that particular year, given a population then of about thirty million, it amounted to SIX MILLION PEOPLE!

Now mental difficulty covered a wide gamut; everything from suicidal tendencies to eating disorders, multiple personality disorder to depression and PTSD.

So don’t be too quick to discount that writer’s assessment.

#64 Viorelli on 08.21.18 at 8:03 pm

One must learn to work diligently and be very conservative with spending. This is your only hope. When I was a kid in the former USSR and took two scoops of borscht with too much sour cream, could not finish the plate as the hunger disappeared and went to play with other kids outside. My grandmother, who was a former sniper in ww2 gave me such a slap that I still remember. “Are you leaving the food for the Germans?” Learn how to make your own food and eat just enough, don’t waste it it is a sin and it is expensive. Please invest the savings wisely as well.

#65 Linda on 08.21.18 at 8:05 pm

#8 ‘Stan’ – you do not need ‘3 or 4K’ per month to eat healthy/organic. If you live on the West Coast, you can grow your own year round & you don’t need an acreage to do it either. A couple of square feet (one big planter on a balcony) will permit most to grow enough lettuce, tomatoes, onions etc. for fresh salads daily; if you have a black thumb there are delivered to your door fresh produce coops you can join for a very reasonable cost. Of course, that means you have to clean/prep/cook & then eat the produce as opposed to eating out at restaurants daily.

If eating organic is so costly, how have all those farmer’s in 3rd world countries managed to feed their families organically all these years on the diddly of squat for an income? Because they sure can’t afford all those fertilizers, pesticides & other chemicals.

#66 Evangeline on 08.21.18 at 8:08 pm

#24 “…. keep all receipts. You have to track everything so you can complete the spreadsheet realistically.

I used to try to do that and it was hopeless. I have no talent whatsoever for accounting or bookkeeping.

My very best accounting friend is now my credit card statement. I put all my fixed expenses every month (except rent) on my credit card and pay it off in total every month. What I get in return is a beautiful itemized credit card statement telling me exactly what I’ve spent every month, down to the last penny, and it’s all nicely categorized.

The card I use is a cashback card and the cashback reward is applied to my January statement — which last Jznuary reduced a month’s expenses (not including rent) to a zero.

#67 Ray on 08.21.18 at 8:13 pm

A couple of years ago,we visited an Australian Zoo. There was a Wombat being cuddled by a pretty young lady zookeeper. She was scratching his chin, and cooing sweet words in his ear ,and he just sat there with a what looked like a $h-t eating grin. I said to myself, in my next life, I want to come back here as a Wombat. He definitally had the best job at that zoo.

#68 Mean Gene on 08.21.18 at 8:18 pm

As the saying goes, you get what you pay for when it comes to financial advice and sometimes the truth hurts.

SUCK IT UP BUTTERCUP.

#69 Stone on 08.21.18 at 8:20 pm

#16 Angie on 08.21.18 at 5:42 pm
I don’t disagree with her. Garth spent 300 words tearing a new one on a person who, for all intensive porpoises, pretty much admitted she was behind for her age. If you wanted canon fodder I’m sure your mail bag has some much better examples of idiocy that we could all have a crack at at their expense.

———-

It’s “intents and purposes”, not intensive porpoises. After all, he called her a wombat, not a porpoise. Lets stick with subject at hand.

If I see intensive porpoises in the neighbourhood, better call animal control or the fisheries department.

LOL

#70 tkid on 08.21.18 at 8:20 pm

Dear Wombat,

so your income doubled the last two years? Hmmm, math says $5000x12x2=$120,000. Oh wait, you didn’t save any of your new income. Which reveals your whining about a low salary three years ago to be a deflection from your real issue:

YOU WON’T STOP SPENDING MONEY LIKE A DRUNKEN SAILOR!

You don’t need helpful statistics on how much you need invested to retire, or how much you should put away for junior. You won’t invest or save for junior’s education. If work doesn’t save money for you, in your retirement you’ll be relying on the government for money, and looking through the free magazines in the library for recipes that make cat food palatable. This while – writing to whatever exists that will call itself a newspaper – complaining that you can never make ends meet and life is haaaaaaaard.

You want some practical advice? STOP SPENDING 50% OF YOUR INCOME AND STICK IT INTO A SAVINGS ACCOUNT. Can’t find the money? GET A SECOND JOB!

And quitcher whining. I have zero sympathy for you. We aren’t fooled by your whinging one bit.

tkid

#71 AGuyInVancouver on 08.21.18 at 8:24 pm

I wonder how many Canadians without a good Defined Benefit pension retire with $2 million in savings? I’d wager not many.

#72 Fluorine on 08.21.18 at 8:24 pm

Wet One

Wait.

Edmonton prices are melting. 9000+ listings, which are being recycled on Zolo, and sales are seriously dying up. Rents are crazy cheap here, so your down payment will just grow larger.

Once the snow flies and the students are back in session, we should see some quicker movement.

Even the EREB acknowledges this (all stats down):

https://realtorsofedmonton.com/web/RAE_Public/Market_Statistics/Monthly_Market_Stats.aspx

#73 SoggyShorts on 08.21.18 at 8:24 pm

#61 Linda on 08.21.18 at 7:53 pm
Regarding the take home of the almost 40 financial illiterate
***********************
What I’m curious about is the previous 20 years.
$2,500 take home each is what? $15/h?
If it takes you more than 20 years after highschool to earn more than minimum wage, there may be a core issue we aren’t aware of.

#74 SoggyShorts on 08.21.18 at 8:28 pm

Whoops, sorry 2500 take home is more like $18/h.
Still, pretty damn close to minimum wage for someone pushing 40.

#75 Nonplused on 08.21.18 at 8:29 pm

I was wondering about whether the 2 mil was for a couple or individual as well.

I totally agree with the RESP’s do whatever you can but not more than $2000 a year, without the grant it’s no better and probably a little worse than a TSFA. It’s only tax free if junior goes to school and they claw back the grants if he/she/zee doesn’t. If you can’t do $2000 a year do what you can the grant is still 20%. The grant is the key feature of an RESP.

The key thing to understand about incomes is the $200,000 per year ange is that unless you are a dentist or lawyer they are here today and gone tomorrow. Anyone making that much will be laid off the day they turn 50, sooner if business turns south. Don’t get used to it. Sick all the extra money away. All of it, even if it takes your savings rate to 50%. It might not repeat. In fact probably won’t. Most people that hit the 1% only stay there 5 years. This is especially true of commissions, stock options, and bonuses. It’s a “winning streak” and should be thought of as one. Just look at Yahoo! Or what’s happening to Facebook. Or Tesla. The bulb that burns twice as bright burns half as long.

Now the money that comes from a winning streak can be invested many ways, pay down your mortgage, TFSA’s, max out your RRSP, RESP, wherever you can stash it. Even pay off your car loan. But whatever you do by dog do not assume this is permanent. Do not start spending the money until you are only spending a portion of the returns. If you have a 10 year winning streak it won’t be long before you can do that.

A good example of this phenomenon is typical NHL players. They work their whole lives to get there and have to cheat like crazy and their parents sacrifice their retirement to pay for it all. They they get 2 years if they are lucky on the 4th string at 1 million a year at 50% tax. So there they are, 24, less the a mil in the bank because of taxes and hooks and blow, and they are done. No education, no career, no options. That is what happens to most of them even if they make the show. Only franchise players make the big money for any length of time. If you are on the 3rd or 4th strings you won’t have a long career.

So the long and the short of what I am saying is if you are suddenly rolling in the hay, don’t spend the money until it’s an annuity. Even if it’s a hit song you’ve produced, it won’t last until you have a library of songs that get regular radio playtime at a royalty fee or you can do Rolling Stones reunion tours.

#76 Mommy & Daddy Are Broke on 08.21.18 at 8:31 pm

But we still have each other. Now….group hug. No food at home and credit cards keep getting rejected at the grocery store. Oh well what can we dig up in the yard and make a salad out of ?

#77 The WOMBAT on 08.21.18 at 8:33 pm

Please allow me to clarify that the entitled poster is not related to me. I have been The WOMBAT on here for years, and it is not because I sh!t bricks.
A WOMBAT is:
A.
Waste.
Of.
Money.
Brains.
And.
Time.
The advice you get from this esteemed blog is worth every loonie you spend to get advice from all the loonies.
I’m still waiting for Garth to send me information about post apocalyptic living and supplies.

#78 raisemyrent on 08.21.18 at 8:36 pm

Oh man. Some of those questions. Garth is a patient man.

Nice exaggeration about Vancouver to prove a point. Ever heard of gastown? Lots of needles and still pricey. If it’s not for you, there’s tonnes of other areas. I love the assumption in there that the only “affordable” bits of Vancouver are around east Hastings. People from other provinces believe that because of people like her.

#79 Potato on 08.21.18 at 8:37 pm

Well, Late, if you’re braving the comments section, I should note that Garth did provide a fair bit of specific guidance in the last post:

“Fill up your two TFSAs as soon as possible by putting aside 20% of take-home pay. That still leaves you $8,500 a month…”

Two grand a month from age 39, increasing with inflation and raises, and an optimistic-but-not-space-cadet 6% real return gets you to that $2M by age 68. So there’s your ballpark right there — certainly close enough to get started with and adjust in a few years when the daycare bill’s gone down or when you pay for personalized advice. Given the typical length of a blog post, I’m not sure how much more you were expecting (esp. as there has to be a certain amount of room for acerbic wit).

Yes, Google could have given you that information… but you didn’t go get it from Google. It’s funny, but that’s a very common thing I see: even if it’s just the same basic rules of thumb, a financial planner or money coach (or Garth) can help someone see how those rules apply to them as well. I once joked that if I wrote a post called “how to invest when you have $50,000” I’d get people asking what to do if they had $51,000 because their situation is so unique and different.

Of course, this isn’t unique to finance, I’m sure a lot of personal trainers spend a good deal of their time finding ways to personalize “eat less, move more.”

As for education, I’m a big fan of books, and have a reading guide here that might give you some suggestions to put in your Amazon cart. One extra that you might find useful to put near the top (before you get into the ones on investing) came out after I put the guide together: Shannon Lee Simmons’ Worry-Free Money. It helps with the budgeting, and includes a neat tip to rank your spending by how much happiness it brings you, which can help better identify ways to cut back your budget.

Garth’s firm offers planning and investing services, but you might find a money coach a better service to help you find those savings and discipline if you can’t do it on your own. There are a few out on the west coast, and many will work virtually from across the country.

#80 PastThePeak on 08.21.18 at 8:38 pm

#19 yvr_lurker on 08.21.18 at 5:49 pm
#21 Bk on 08.21.18 at 5:50 pm

Vancouver has been the most expensive city in Canada to live in for the last 40 years (if not more). Hopefully the cost of living there isn’t a surprise to anyone.

Where I live most of the people I know came from somewhere else, myself and the wife included. Moving to where the jobs are better, or cost of living is lower, isn’t a radical idea.

#81 Lisa on 08.21.18 at 8:39 pm

Babe? You called her a babe? Seriously Garth, why do you have to be so sexist?

Is wombat better? – Garth

#82 Dave on 08.21.18 at 8:58 pm

I must admit…these types of articles are my favorite.

Serving the financial advice cold blooded like this is very entertaining

#83 Me too late on 08.21.18 at 8:58 pm

Garth is a jerk.

This is news? – Garth

#84 Chico on 08.21.18 at 8:59 pm

#81 Lisa on 08.21.18 at 8:39 pm

Babe? You called her a babe? Seriously Garth, why do you have to be so sexist?

Is wombat better? – Garth

————————————————————–

Much better. My wife loves it when I call her a wombat.

#85 maxx on 08.21.18 at 9:10 pm

….and now for something completely different :-)))

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

#86 @careeraftschool on 08.21.18 at 9:14 pm

At some point you need to use leverage in order to be successful or reach the next level in real estate, investing(stocks & ETF’s), or in business. Can be done responsibly. Some people are better at paying investment loans than saving money on a monthly basis.

#87 gfd on 08.21.18 at 9:21 pm

https://www.thestar.com/business/2018/08/21/when-hay-prices-double-its-bad-news-for-canadas-cattle-herd.html

#88 Toronto renter on 08.21.18 at 9:21 pm

What’s an appropriate rate on an unsecured LOC? I have 11% right now but that feels unreasonably high.

I bet [email protected] is still laughing. – Garth

#89 AR on 08.21.18 at 9:30 pm

We saved $25,000 in RESP’s for each of our two kids. They required tuition, rent, food and transport each for 4 years university. Both came out with $30,000 plus in TFSA’s because they got great summer jobs which financed their entire education. Plus one of them got a $5000 scholarship for three years. So we were able to roll the TEDp’s into TFSA’s annually. We feel extremely lucky that they were both capable, hardworking kids. And that they both loved the idea of graduating with significant investment accounts, so they weren’t dumb with their money. Now they both have all kinds of options and they know that as soon as they sink that money into real estate, they’re trapped. Our eldest has been out of school 2 years and now has almost $60,000 in his portfolio. Like I said we are very grateful. Good kids.

#90 BlogBear on 08.21.18 at 9:30 pm

Wombat is gender neutral so yes, better than babe.

Smoking John is a misogynist. I’m not sure how the circle works – if he was mean to women and then they treated him badly so he became like this, or if one woman treated him bad, so now he hates all of them. We’ll never know (and don’t want to be a wombat – waste of my brains and time).

This type of person usually loves Jordan Peterson lol

#91 yvr_lurker on 08.21.18 at 9:31 pm

#80
Where I live most of the people I know came from somewhere else, myself and the wife included. Moving to where the jobs are better, or cost of living is lower, isn’t a radical idea.

——-
Indeed, this a good point. If I was starting out now trying to make a go of it in YVR, there is no doubt I would bail to some cheaper place with more vibrant communities: Halifax and Edmonton here come to mind. Fifteen years ago it was not so clear what to do, and there are some jobs that are really good but are not so movable (i.e. university gigs..). Moreover, relocation to areas where socially one needs to start over with no extended family is a bit problematic. Now if I was younger, the pros of moving would win out.

#92 Fish on 08.21.18 at 9:32 pm

I’m still going to buy a tent

#93 Ex-Cowtown on 08.21.18 at 9:33 pm

Going off topic but what the heck. Trump can spend as much of his own $$$ on his campaign. No limit. No laws broken there. I spoke years ago with an Alberta politican who claimed to have spent $10 million of his own funds on various of his own campaigns. All good there, all allowed.

The question I have is how much $$$ value is there in Facebook, Google, Twitter and Snapchat silencing conservative commenters? Millions? Billions?? These are definitely “Contributions in Kind” and they’re obviously being done for political purposes. These people could be in a pile of trouble themselves.

Now how much did the “Masters of the Universe” contribute to Hillary’s campaign in “Contributions in Kind” and how about Celebrity endorsements (or trashing of the opposition)?

Point is that Trump, as the candidate, was free to do with his own cash whatever he wanted and spend as much as he wanted; literally no limit.

Cohen admits to breaking the law, but Trump could have given Cohen as much $$$ as he wanted for campaign purposes, just like buying time on CNN or MSNBC. What Cohen did with it was up to him.

Fine point, perhaps, but loosing the Spanish Inquisitions based on a lie filled dossier wasn’t exactly a clean hands move either.

#94 JSquared on 08.21.18 at 9:41 pm

#41 you spending your cash on? If two years ago you were “only” pulling in $5K/mon, that’s a pretty comfortable life. I net $3,700/mon, and still manage to invest 40% every month, have 6 figures in the bank…

——————-

sorry, calling BOGUS on this one. A little calculation shows that after the 40% saving, you have about 2200.00 month to live on. With rent about 1400+ per one bedroom in fairview, that leaves 800.00 per month for everything else…. indeed living high on the hog in YVR on that….. Give the lady a break…. she will hopefully go forward in the right direction, and no need to troll….
_____

Wrong-o my friend, tis true. I won’t do the breakdown, but trust me, it’s doable, and I’m doing it. Who says one has to live high on the hog? (What does that even mean?) Just say no to materialism. Parks, beaches, bike rides etc. are free, Craigslist, invite friends over for potlucks, drive a beater, don’t go shopping because you’re bored, avoid debt like the plague, and stop comparing yourself to all the other suckers out there caught in the self-esteem killing advertising trap. People spending money they don’t have, to buy things they don’t need, to impress people they don’t know. So stupid. Keep life simple. Hopefully “Late” has gotten the wake up call she so desperately needs.

#95 Midnights on 08.21.18 at 9:55 pm

People are becoming way to sensitive.:(

#96 Ustabe on 08.21.18 at 10:00 pm

From time to time people I know well will ask me if I can help out a coworker, a friend, a relative in matters financial. I don’t blog about it, nor do I take any form of pay but I’ve been able to point a few down a better path and/or make introductions.

One such situation was my immediate neighbours to the north of me. Paid for house and only $500,000 in the bank. A couple. No pensions other than the CPP and whatever could be done with 1/2 a mil.

Between CPP, OAS and GIS plus a small dividend from their new to them investment portfolio the income is in and around $3,500 to $4,000 a month.

They manage to have somewhere in and around $800-1,000 left over at the end of each month and that goes into a property tax/vacation/emergency fund.

Between the true value of their home and the (now) almost $600,000 portfolio they are at 1 million, just.

So, no, you don’t need 2 million to retire. You might not want to live as frugally as they do but they eat well, take a vacation out of country every couple of years and attend music/dance/drama festivals all over BC.

Small town living…where you can afford to retire and still eat a steak every now and then.

#97 gfd on 08.21.18 at 10:22 pm

I meant this one, forget #87
https://www.thestar.com/business/real_estate/2018/08/21/toronto-real-estate-board-awaits-leave-to-appeal-sold-data-ruling.html

#98 Cherry Picker on 08.21.18 at 10:24 pm

Before taxes 4% of whatever you save for retirement is a rule of thumb I like, so for every 300000 you have saved you get 12000 a year or 1000 a month. If you need 3000 a month not including oas, cpp, other pensions or other income, then save $900000. 1.2m gives $4000 a month, 1.5m give $5000, etc.

#99 DON on 08.21.18 at 10:30 pm

LATE….REALLY.

You wanted free personalized advice when you could have searched the blog? And you are complaining that Garth was not sensitive enough…what were you thinking. For two years you both have made good money and….

My wife is re entering the workforce after completing additional schooling and 75% is going into investments. We will enjoy the simple things in life…like being healthy. I know Vancouver is all about keeping up with the Jones…the sooner you shake that the better off you will be.

#100 TRUMP on 08.21.18 at 10:40 pm

Garth,

Now you know how TRUMP feels when he is forced to deal with clueless politicians who keep thinking it’s ok to spend other people’s Money.

#101 John on 08.21.18 at 10:44 pm

I’m surprises she doesnt ask you to tell her wether she should have the toilet paper unroll from top or bottom

#102 Bottoms_Up on 08.21.18 at 10:47 pm

Garth was a little harsh to Late. Email is impersonal, and the reader tends to interpret tone via their own headspace. But Late is also being a bit too sensitive. Its a free blog, who cares what the G man says about you.

Late: you make good money. Enjoy your child. Give them a fulfilling upbringing. Enjoy your life. Save a little bit. No one knows the future.

#103 Al on 08.21.18 at 10:50 pm

if her rent was 2k, they could’ve saved some of the remaining 3k, but not a lot. 36k a year excluding rent for a family of three is not exactly extravagant. Where did the extra 5.25 k/month 63k/year go once they got the raise? Thats what seems concerning. If they could just maintain a similar lifestyle they held for almost all their adult lives , now resulting in 50% savings rate, she will have enough money to retire in 17 years, at 57. Prolly much sonner as their future raises/ career advancement will prolly outpace inflation as is common with upper middle class careers.

TLDR for our 40yr old lady , you need to have 25x your yearly spend invested at 7% to retire. If you pay some one 1% to invest for you, you’ll need 33X (as your net return will only be 6%) The time it takes to get there is just a function of your savings rate, how much of your take home income you save. I.e 50% savings rate – 17years, 75% savings rate- 7 years. See http://www.networthify.com. Or google 4% rule. There’s also blog post on this site about it, written by one of his colleagues, maybe our host can link to it. Optimize the spending side of the equation first (may take a couple of years) then if retirement is still too far away, work on making more money. Ignore the naysayers. GL!

#104 Canadian Moose on 08.21.18 at 10:51 pm

I say L is damn lucky to have her financial situation picked apart by the mighty GF. And then to boot, reissued on the GreaterFool.com. And then have the mighty deplorables of our current time comment on her situation and Garth’s advice , and then allow a simple guy like me from the Hinterland, enjoy the reading entertainment from the confines of my quiet deck with a glass of Carmenere. Ah life is good, and den…….

#105 Leo Trollstoy on 08.21.18 at 10:55 pm

#74 SoggyShorts on 08.21.18 at 8:28 pm

Your reading comprehension is terrible

#106 yorkville renter on 08.21.18 at 11:01 pm

First, Apparently not everyone shops at Whole Foods Market, and yet they still manage to keep their teeth and fend off child mortality.

Is GOLD! It amazes me how many people say we NEED stuff for kids, yet somehow we’ve survived for millenia

Second, not being able to save when you have $10K take-home is definitely a choice. If you want to save, then SAVE – don’t be an entitled princess.

#107 Capt. Serious on 08.21.18 at 11:01 pm

Holding a high savings rate in early and middle adulthood is just a common sense thing to do. You will not be able to catch up later, but you will be able to reduce your savings rate if things go well and you get nice market returns. Better to be early than late.

#108 acdel on 08.21.18 at 11:03 pm

The email from Wombat is exactly why so many young men that I manage have no interest in Canadian women (there words not mine).
In my case there are many wonderful women out there that would find her email a disgrace but at the same time I do agree that it has gone too far, watch any T.V. commercial, show, news, etc and most guys out there can relate to what I am saying.

To the poster, grow the hell up and take some responsibility for your own actions you whiny brat!

#109 Overheardyou on 08.21.18 at 11:20 pm

She had the audacity to not heed the advice and talk about reading between the lines. That’s the best advice anyone could have given her. For free none the less! I’m late twenties and worried about retirement already. Sheesh. She should is VERY late to the investment party

#110 DON on 08.21.18 at 11:25 pm

I’m still pissed that Garth called my generation middle aged. He should be more sensitive with the truth.

Saving now is better late than never!

#111 Typical Vancouverite on 08.21.18 at 11:45 pm

Cut you off in traffic.

Look at you funny when you say hi.

Middle finger cocked and ready to launch at anyone and everyone.

And last but not least, mostly broke people thinking they are rich because their tear down house is 2M.

Best place on earth. Uh huh.

#112 AJ Jump in the Shark Taas Called a Topnk H on 08.21.18 at 11:54 pm

Past the peak.

YLW hits slow down mode on route to the next phase which is a skid. AJ said it. Not me.

Now the best part was the comment on how YLW will avoid a crash because apparently everyone on the planet is moving there. Even though current stats Canada show a reversal in the past year.

So, all other places will experience a harder down turn due to everyone leaving there on route to good ol’ YLW.

Also take note. Anything under 600K expected to sell. Anything over not likely or with some difficulty.

Come again????????????????

90% of YLW real estate is over 600K. Lookout below!!!!!!!!!!!!!!!!!!!

#113 Smoking Man on 08.22.18 at 12:12 am

The polarization is getting extream…

The Schooled vs Logic.. No sense being a partizan hack.
There is a shit load of loot to be made in this divisive play playing out.

Ahhh what would Soros bet on? I should share but then I lose the advantage of my bet..

Sorry patriots and communists. I’m loyal only to my wallet. Getting old and unpredictable..

Gartho says you need 2 million to retire , ok. A Joke . I’m thinking 30 or 40 million will do it for me..

You’re not going make that at the tax farm less you’re a globalist teet sucker ceo. All of them, virtue signaling super capitalists in disguise.

Frightend of kids that think socialism is cool.. The kids got the ceo’s backs for now. That can change quickly.

Bet accordingly.

#114 Midnights on 08.22.18 at 12:12 am

Trumps tearing a hole into Trudeau right now, 300 percent tariff on cheese.

#115 Keith on 08.22.18 at 12:47 am

You’ve taken till age 40 to get educated, build a career, create some memories and make a baby. Time to live life out of balance for a while.

When you income doubles, you invest all the new money, for five years. You will have 5k per month invested, for 60 months, without sacrificing the previous lifestyle. You emerge at age 45, with 350k financial net worth. Age 45 – age 65 that will grow to 1.4 million.

After the five years, you cut the 5k per month savings to 2k. Twenty years of compounding 24k per year, will get you way over the two million mark, and you’re home free.

You call yourself late start, which is very apt. The solution to having lived life out of balance, which led to the late start, is to live life out of balance for the medium term, in order to get you back into the proper balance. Balance Daniel san, balance.

#116 Bob Dog on 08.22.18 at 1:06 am

When it comes to Canada In 2018 and looking toward the future, there are only two relevant question.

How much is a country worth on the open market? And what portion of my taxes should be allocated to defending the valuable product.

#117 Mike in Vancouver on 08.22.18 at 1:23 am

There’s a web site called reddit that all the moisters are into. And a specific area just for your 40 year old letter writer: r/choosingbeggars

It’s free advice. I found it useful. $200,000 a year? Certainly they can afford a financial planner to talk this through with lots of gentle encouragement and no sarcasm.

#118 Muttley O'Toole on 08.22.18 at 1:57 am

Actually calling someone a wombat in Australia means they eat root(s) & leave(s) – ask Flop.

#119 Mr Buyer on 08.22.18 at 2:09 am

So would I be stupid to buy a house with vermiculite in the attic as insulation? I think it will be like 15k to get it removed but if it is in the attic would it likely be in the walls?

#120 Cleb on 08.22.18 at 2:35 am

Garth! Your should have that extra glass of whiskey every night! I like it.

#121 majik on 08.22.18 at 3:49 am

#73 SoggyShorts on 08.21.18 at 8:24 pm
What I’m curious about is the previous 20 years.
$2,500 take home each is what? $15/h?
If it takes you more than 20 years after highschool to earn more than minimum wage, there may be a core issue we aren’t aware of.

#74 SoggyShorts on 08.21.18 at 8:28 pm

Whoops, sorry 2500 take home is more like $18/h.
Still, pretty damn close to minimum wage for someone pushing 40.

———

“In 2015, median income for one- person households was $38,449 in the City of Vancouver, and only slightly lower at $38,164 for Metro Vancouver.”

Minimum hourly wage in BC was just increased from $11.35 to $12.65 on June 1st this year. So on the newer greater amount you are only earning $26k a year, assuming a 40hr week. Now that’s a real minimum wage.

I have no idea were people get this idea that $15/hr is the minimum wage. I guess either through naivety or ignorance, trés Canadien.

#122 Dave in Kincardine on 08.22.18 at 4:29 am

As an investment adviser for 35 years, the two million number for RSP is useless. As Dave Chilton says ‘be a good saver. That is half the battle.’ I had a couple who owned a small cottage, nice car, and lived a great life on $20 000 per year. Malcom Hamilton (Mercer) has the best concept for what amount to have to retire on. Google his ideas. Good luck.

Living on bugs and CPP in Kincardine. Ah, the golden years. – Garth

#123 BillyBob on 08.22.18 at 5:01 am

#53 crowdedelevatorfartz on 08.21.18 at 7:26 pm
@#116 BillyBoob
“Please give examples of how Canada has “rescued” anyone from the UK/Italy/Spain?”
++++
Apparently reading comprehension isnt your strongest point.
” I said IF the feces hits the fan…..”

And I was harkening back to the “Canadians of Convenience” in Lebanon of a decade or so ago when the Israeli army waltzed in and kicked Hezbollah ass while laying waste to half the countryside.
Suddenly there were thousands of dual citizens bitching at Canada to “rescue them”.

http://www.timescolonist.com/opinion/letters/canadians-of-convenience-can-be-expensive-1.23154637

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

And what parallel event to Israel invading Lebanon do you fear for the Brits/Italians/Spanish? *eye roll*

Trying to defend your xenophobia with a 12 year old event, referenced in a letter to the editor in a local rag of a laughably provincial town like Victoria has to be the weakest rebuttal possible. Particularly as the backlash from that event is precisely why it won’t be repeated.

Don’t want people treating their citizenship casually? Stop assigning it so little value. Canada has only itself to blame in this regard.

The current social systems can’t even cope with the current population and as the demographic ages it’ll only get a lot worse. Suggesting that large numbers of people have Canada as their fallback is delusional.

#124 Westcdn on 08.22.18 at 6:14 am

Trump wants a cheap money Fed – let’s see who the adults are. Just to annoy is a report of how much power/money is being concentrated. 3 people being worth more than 50% of US plebs appalls me and I think Canada is similar. They may have better morals than Trump but I am sure they are covering their asses first. http://theirrelevantinvestor.com/2018/08/09/the-scapegoat/ – a tale of servitude. Interesting these guys don’t question The Don. Even Bezo bit his tongue but then he has a goal of Amazon being the preferred supplier to everyone. If these guys tell me they are unhappy with my performance, then I worry about selling my soul.

Let’s get real with where we are. I just go with what I believe. I want l want to improve things for the living while I am alive. My father told me a joke back in the early 60’s. A husband was told to dress for a Halloween costume party by his wife. He came out dressed normally with a potato hanging in front of his privates. WTF! I am going as a dick tater. I heard being a jerk helps to becoming wealthy but that path can make you a bigger jerk and lots of bad karma. Karma, I have lot to say but my beliefs are not yours.

Things are beginning to shine on me after a dreary period. I still have a long ways to go to make up lost ground. I really like the feature of TFSA’s where my withdrawal are added back to my contribution limit. Guess what I am doing. Echo Dot 2 was on sale over last weekend. I bought a couple. The things are amazing for the price and potential which I am testing on my daughters. I may change its name from ‘Alexa’ to ‘Gunga Din’ but then that won’t be PC. I even got an “oh Dad” from my eldest daughter which always lightens my heart.

I thought this was a good comment on macro debt. It recommends Emerging Market investing.
https://moneymaven.io/mishtalk/economics/yesterday-in-turkey-lira-bulls-and-bears-duke-it-out-on-twitter-https-moneymaven-5EiKW5-VV0uZeX5NTTGDug/

This chart is interesting. https://s3-us-west-2.amazonaws.com/maven-user-photos/mishtalk/content/zmfATcSa4EegwR7v_znq6Q/gN1OuxgwAkSzeSBD33OAog

It is in US$ – note the timing of the zero bar. All in all, I am getting ready for tough times – hope I am wrong. I settled on HXP as my EM EFT. I did buy some gold, only a couple of thousand, and waiting to see what happens.

#125 Oft deleted much maligned stock.picker on 08.22.18 at 6:26 am

As reported more than a month ago the US and Mexico have made a deal…..announcement on Thursday….Trudeau is sunk…..it’s going to be popcorn time to listen to all the blubbering that’s going to cone out of the CBC corkhole trying to defend Trudeau’s handlers…..who really really really screwed Canada.

https://www.forexlive.com/news/!/us-to-announce-handshake-mexico-nafta-deal-thursday-reports-politico-20180822

If this doesn’t get Canadians to do a Frankenstien mob march up Parliament Hill I don’t know what will. Or are we all still intimidated by Trudeau calling us racists? There is no back door Gerry Butts can slither through…..thus has gotten out of control.

#126 Ljp on 08.22.18 at 6:39 am

Everyone is making a lot of assumptions about a person’s behavior that they don’t know. Judging gets us nowhere. The reason I’m saying this is that I’m in a similar boat and I’m mid-forties. I’m only clueing in now (found this blog in Jan of this year), and while no one got me here but me, I’m not going to let anyone make me feel bad for not being educated in this area. I didn’t receive any advice about investing growing up and the sales people at the bank didn’t instill any confidence in me, so I avoided the whole thing. My parents died when I was 28 so I quickly cultivated a ‘live for today’ philosophy as I didn’t have a reference fore needing money when you were old. My husband’s parents were great savers and investors, but his dad hated his job and spent the last 10 years there counting down to retirement so he could collect a pension. He finally retired but got ill soon after, got to take two trips and then died. His wife is enjoying their savings and travels a few times a year. This also left a big impact on him. I’m not giving out this info for sympathy, but for people to realize that their are a lot of motives behind people’s actions that maybe you are not seeing.

I have three boys and I shop All organic, grass-fed, bio-dynamic, wild-caught, etc. My oldest son, was sick as a baby (found out later that he had wheat and dairy sensitivities) and couldn’t tolerate processed or chemically laden food (found out later that he has the MTFHR gene mutation that makes him unable to detoxify toxins, chemicals, heavy metals, etc). Watch your 7 year old throwing up with migraines because he ate cheap processed food and tell me how much your retirement investments mean to you at that moment. My food bill is more than some people’s mortgages.
My boys all go to private school. This was solely my requirement. Some of my siblings and nieces and nephews had great promise early in life but became a bit self destructive and did time in jail, substance abuse, or just dropped out of university. Seeing this scared me so my kids went to private school where I thought they would be exposed to a ‘good’ environment. Was this necessary, again no – but to a scared worried mother, it seemed worth the money.
My husband, travels extensively for work and being home alone most of the time with kids was very hard. I didn’t have the self knowledge at the time to say this is not working for me, so I took my unhappiness and planed family vacations two to three times a year. Looking back it was better than having an affair, breaking up the marriage, using wine or some other substance to fill the gap. Did it leave us with any savings? – not one bit. Have I spent on things I shouldn’t – hell yes, do I regret it now – yup! I can’t change what I did in the past and am now working to correct what I can and do better in the future. I am the type of person, you all would all judge for years of wasteful spending – was it all for naught? definitely not, as my oldest is now 15 and very healthy (along with my other 2 boys) and just got a partial scholarship to prep school, my husband and I got to deal with issues and make our relationship better. I have to now just get my financial house in order or we are going to be on the freedom 95 plan.

#127 Steve French on 08.22.18 at 7:41 am

In the last 6 years i have socked away $60,000 per year. I started late with my first professional job– not until aged 39. Now I’m aged 45 and have a portfolio of $210,000 and a retirement fund of $140,000.

Current net worth: $350,000

How did i do it?

Here’s the numbers:

Current Salary: $110,000/year.

23% of my after tax income, or $2,200 per month, gets put by my employer direct into a superannuation plan (I’m Australian).

From that, my monthly after-tax take home paycheque is $6,223 per month.

Monthly Expenses:

Rent for 1 bedroom apartment: $1,600
Utilities, Taxes, Health Insurance: $300
Groceries: $520
Entertainment/Restaurants: $300
Clothes and Durables: $166
Travel/Gifts/Extras: $200

Total Monthly Expenses: $3,093

Cash Savings (on top of superannuation): $3,130 per month.

This gets places in my Turner ™ approved diversified, balanced and full liquid investment portfolio. My $210K portfolio pumps out steady returns.

Overall savings rate: 63% of after-tax income.

Note: I have no car, no mobile phone, no expensive phone plan, & no cable TV.

Bike to work each day keeps me fit.

From zero assets to well on my way to financial independence, within 6 years.

**THIS is how you sock away $350,000 in 6 years. **

I still live very comfortably.

It is possible.

But first you have to do the exact opposite of everything that Smoking Man tells you to do.

#128 Mishuko on 08.22.18 at 7:41 am

I do not feel bad at all. Common. Really?

Late feelings all bruised because she is being hit with a big hard dose of reality? This is why so mant canadians are going to get donked. Atleast she admits she is financially illiterate.
One small step in getting over that ego.

Stick around and you will see, Garth cares for the people. He gives advice that can be hard to swallow but at least it is genuine with good intention

#129 dharma bum on 08.22.18 at 7:44 am

That female person who wrote in had to be pulling your leg.

It’s gotta be a gag.

Nobody could be that hideously obnoxious and entitled.

#130 Wrk.dover on 08.22.18 at 7:52 am

#119 Mr Buyer on 08.22.18 at 2:09 am
So would I be stupid to buy a house with vermiculite in the attic as insulation? I think it will be like 15k to get it removed but if it is in the attic would it likely be in the walls?

—————–

Spend a morning mating a 1HP, 4″ bore dust extraction blower for wood working machinery to an enclosed trailer for it to directly fill, get a long fat hose that reaches it through a vent and get the job done in a the afternoon on a grey winter day when you won’t get hot being all bundled up. Keep it damp with some mist and wear the best of respirators. Protect the eyes too.

Net saving $12,000 tax free. Flip the tools and save yet more. I like $1000/hour tax free, do you? I can’t afford to work for a living you know.

I doubt it is in the walls too, but if you seal your electrical outlets, so what if it is?

#131 Remembrancer on 08.22.18 at 8:21 am

#75 Nonplused on 08.21.18 at 8:29 pm

The key thing to understand about incomes is the $200,000 per year ange is that unless you are a dentist or lawyer they are here today and gone tomorrow. Anyone making that much will be laid off the day they turn 50, sooner if business turns south. Don’t get used to it. Sick all the extra money away. All of it, even if it takes your savings rate to 50%. It might not repeat. In fact probably won’t. Most people that hit the 1% only stay there 5 years. This is especially true of commissions, stock options, and bonuses. It’s a “winning streak” and should be thought of as one. Just look at Yahoo! Or what’s happening to Facebook. Or Tesla. The bulb that burns twice as bright burns half as long.
—————————————————————-
True dat. I’d also add, enjoy a bit of it as you don’t know what’s behind the next bend in the road – investing in experiences along the way, with the people who matter to you is important too. Have a back up plan, side gig / hobby you enjoy, charitable give-back whatever…

Finally, be vicious with reviewing monthly bills and questioning as necessary those easy add-ons that are only $10 or $20 per month each… They add up…

#132 Should poop hit the fan on 08.22.18 at 8:34 am

Dear Garth,

Should Ms. Late request a refund, I am willing to cover half. If possible, I would like to pay it over three months (sadly, I’ll have to use my 11% LOC).

#133 Remembrancer on 08.22.18 at 8:55 am

#121 majik on 08.22.18 at 3:49 am

I have no idea were people get this idea that $15/hr is the minimum wage. I guess either through naivety or ignorance, trés Canadien.
—————————————————————-
Maybe a hold over / herd memory from the former ON Libs promising to go to that Jan, 2019 after $14 in 2018 – didn’t work out that way though…

From the Retail Council of Canada June 1, 2018 min wage by province / territory…

NL $11.15
NS $11.00
PE $11.55
NB $11.25
PQ $12.00
ON $14.00
MB $11.15
SK $10.96
AB $13.60
BC $12.65
YT $11.51
NT $13.46
NU $13.00

#134 James on 08.22.18 at 9:02 am

#127 Steve French on 08.22.18 at 7:41 am

In the last 6 years i have socked away $60,000 per year. I started late with my first professional job– not until aged 39. Now I’m aged 45 and have a portfolio of $210,000 and a retirement fund of $140,000.

Current net worth: $350,000

How did i do it?

Here’s the numbers:

Current Salary: $110,000/year.

23% of my after tax income, or $2,200 per month, gets put by my employer direct into a superannuation plan (I’m Australian).
From that, my monthly after-tax take home paycheque is $6,223 per month.
Monthly Expenses:
Rent for 1 bedroom apartment: $1,600
Utilities, Taxes, Health Insurance: $300
Groceries: $520
Entertainment/Restaurants: $300
Clothes and Durables: $166
Travel/Gifts/Extras: $200
Total Monthly Expenses: $3,093

Cash Savings (on top of superannuation): $3,130 per month.
This gets places in my Turner ™ approved diversified, balanced and full liquid investment portfolio. My $210K portfolio pumps out steady returns.

Overall savings rate: 63% of after-tax income.
Note: I have no car, no mobile phone, no expensive phone plan, & no cable TV.
Bike to work each day keeps me fit.
From zero assets to well on my way to financial independence, within 6 years.
**THIS is how you sock away $350,000 in 6 years. **
I still live very comfortably.
It is possible.
But first you have to do the exact opposite of everything that Smoking Man tells you to do.
___________________________________________
You did it and you have your own teeth and hair to prove it!
Smoking Man is turning into a dirty old man in the pool with young girls when he is in Las Vegas of late. Connect with him on his video feeds via his new alter ego. Its tragically funny but also a little sick to watch.

#135 IHCTD9 on 08.22.18 at 9:13 am

The bulb that burns twice as bright burns half as long.
_____

I like James Hetfield’s version of that quote:

“The brightest flame burns quickest”.

That general idea is often true right across the spectrum when it comes to greatness achieved in some way.

#136 Jungle on 08.22.18 at 9:16 am

Really enjoyed watching Ryan on BNN this morning talk about RY earnings.

Ryan is one of my favourite analyst to hear, keep up the good work!

#137 saskatoon on 08.22.18 at 9:22 am

thanks goodness this crappy mom is speaking out.

the more she squeals, the more young women realize how first-world feminism is a total sham.

#138 IHCTD9 on 08.22.18 at 9:23 am

#130 Wrk.dover on 08.22.18 at 7:52 am

Net saving $12,000 tax free. Flip the tools and save yet more. I like $1000/hour tax free, do you?
___________

You’re speaking my language here!

Buddy can pop off a switch plate to see what’s in the walls, but since getting rid of V and putting in fiberglass or just about anything else requires stripping the walls – probably not worth it.

The cheapest way of moving a lot of solid particulates quick for this guy would be an old agricultural feed blower. They’re cheap when old and used – and they can move tons per hour.

…and then like you said – sell the thing when you’re done for same as what you paid for it.

#139 James on 08.22.18 at 9:26 am

#28 Gravy Train on 08.21.18 at 6:06 pm

It’s not Trump who’s draining the swamp; it’s Mueller. :)
____________________________________________
Manafort and Cohen are forfeiting profoundly for their associations with Trump. They were in effect only two of the voluminous swamp creatures that slithered out of the mucus in the quagmire to breed malevolent deeds with their orange haired slime master. You can’t walk with God, while holding hands with the devil. These two were swallowed up in a maelstrom of worldliness and they left their souls out of account when they conspired with Trump. I quote Donald Trump “I only hire the best”. The best what? I rest my case.

#140 Victor V on 08.22.18 at 9:26 am

Royal Bank of Canada reports record $3.1 billion net income, raises dividend

https://business.financialpost.com/news/fp-street/royal-bank-of-canada-reports-record-earnings-raises-dividend

#141 Remembrancer on 08.22.18 at 9:31 am

#133 Remembrancer on 08.22.18 at 8:55 am Follow Up

Hoping this is a permissible link :-). Lest I stand to be corrected, AB is set to go to $15 in Oct… Still no province or territory currently at $15 and many well below…

This is a “general” minimum wage though, the map also includes links to each jurisdiction’s relevant site with additional details. ON for example has lower minimums for students and liquor servers…

https://www.retailcouncil.org/quickfacts/minimum-wage-by-province

#142 IHCTD9 on 08.22.18 at 9:46 am

#122 Dave in Kincardine on 08.22.18 at 4:29 am
As an investment adviser for 35 years, the two million number for RSP is useless. As Dave Chilton says ‘be a good saver. That is half the battle.’ I had a couple who owned a small cottage, nice car, and lived a great life on $20 000 per year. Malcom Hamilton (Mercer) has the best concept for what amount to have to retire on. Google his ideas. Good luck.
__________________________

That’s my parents life. Perspective weighs in huge, my folks have never had it easy, never had money to spend or save, blue collar roller coaster, and Dad still works part time seasonal (mowing lawns – hey he loves it) even now.

They got 2xOAS, 1 average CPP, and 1 pittance CPP, maybe 26K. There might be another 10-15K in lawn mowing and perennial selling funds per year (for now).

Came here over 6 decades ago not knowing a word of English, escaping a blown up Europe.

They both feel they’re doing just fine.

But it’s no model for you, right? Frugality is an imposed necessity, not a goal. – Garth

#143 RyYYZ on 08.22.18 at 9:48 am

I guess I have the advantage of having a friend in the financial planning business who I did a bunch of work for in my late 20s, creating presentation materials for them. Not that I was completely ignorant of the need to start investing for retirement early before that.

Anyway, pretty much as soon as I had some sort of regular, dependable income, I started dropping money in my RRSP. Not a lot, at first – $300/month, although that was still a significant chunk out of the $35k/yr I was making in 1997. And no, $35k/yr was not really good money, even 20 years ago. When I went to work for my previous employer, I found they had an RRSP contribution matching plan, up to 6% of your gross. So of course I took advantage of that – extra $$$ from the company. Also my income increased considerably so I started putting a lot more away.

I’ll admit that some of the investments that I let my money molder in for far too long were not very productive, but at least I was putting something away every month. “Pay yourself first”, right? This was just fairly obvious to me. Why are so many people so completely financially illiterate? Was I a weird 20-something for thinking about a retirement that was ~40 years away?

#144 James on 08.22.18 at 9:50 am

I must apologize to the 40-year-old who wrote to this blog yesterday for free financial advice. I failed to understand she is, well, sensitive. Special. And I was, like, so unfair. Apparently it is no fault of hers that she lives in a $200,000-per-year household without investments, real estate, savings nor a budget. It was crass, paleo and crusty of me to miss the fact the letter was intended not for guidance and corrective advice, but to elicit admiration and approbation. For that, I am sorry. An email full of gold stars and emojis is on its way back.
________________________________________
She should grow up and loose the woe is me attitude. She is making good money, try saving and investing rather than lattes and whole foods. I don’t know her situation but she sounds entitled. She is older than me and my family makes more but we save and invest more. We live in a nice older home in the city (Toronto) with three children. No BMW’s, Porches, Audi’s, just one car (my wife commutes TTC) our car is a Ford Expedition SUV. Fits five easily and has room for 3 kids. I know the YVR is more expensive but try moving further out and commute. I lived in SoCal once and it was insanely expensive. So I did the commute from the outreaches to keep my costs down. The things you have to do to not be entitled!

#145 James on 08.22.18 at 9:51 am

A good opportunity to make some $$ on Canadian lumber sales.
https://uk.reuters.com/article/us-toll-brothers-results/toll-brothers-profit-beats-on-robust-demand-for-luxury-homes-idUKKCN1L612B

#146 RyYYZ on 08.22.18 at 9:58 am

#12 Jungle on 08.21.18 at 5:24 pm
The piece she’s looking for is tracking your spending, learning your habits (and how much they cost), then learning how to save money on EVERYTHING. Use your savings to invest, pay debt.
====================================

That’s probably good advice, but takes quite a bit of discipline. For many a more realistic approach is to decide to set apart a certain amount to save/invest, remove that right off the top when you get paid, and then do what you can with what’s left. You pay your fixed bills and expenses, and what’s left over you can spend or save.

This has been my approach since the age of 29. Ok, I’ve “only” put away about 500k in RRSPs, TFSA, and other savings/investments by my now age of 50. That’s a lot more than many people. Never really had to deprive myself of anything, just only spend what I had left over (or less). I did borrow to buy cars, just because I couldn’t see any point in tying up 20 or 30k of my own cash when I could borrow for <3% APR.

Some people just seem to lack common sense, a sufficient fear of ending up old and poor, or responsibility for making their life (particularly in retirement) what they want it to be, rather than just hoping for the best.

#147 Steve Bridge on 08.22.18 at 10:05 am

Well, you definitely won’t post this, but a fee-only financial planner is what this lady needs. Advising $2 million because that is 60% of income replacement? That’s canned advice and the kind of thing that can scare people into putting their heads in the sand.

Every person’s retirement needs are specific to them (thus the % of income rule sucks). Doing a detailed cash flow plan for the present (and putting a spending and saving plan in place) and then using that information to project spending in retirement (and therefore how much she needs to save between now and then)is uber important.

You’re a smart guy and all, but this lady’s situation is not your forte. It’s okay to admit you can’t do everything. :)

She’s sub-40, lives in Vancouver, wants more kids plus real estate and with her husband makes $200,000 a year, saving zero. The best strategy is to scare her into action, not to provide a cash flow projection based on meaningless assumptions decades from now. You’re right, clairvoyance and make-believe ponies are not my forte. – Garth

#148 Antlers in the Trees on 08.22.18 at 10:23 am

#55 Dolce Vita on 08.21.18 at 7:38 pm
Well Garth, after reading her letter response, high time you read Ludwig Wittgenstein.

Who ended his Tractatus Logico-Philosophicus-

“My propositions serve as elucidations in the following way: anyone who understands me eventually recognizes them as nonsensical” ?

#149 IHCTD9 on 08.22.18 at 10:31 am

#137 saskatoon on 08.22.18 at 9:22 am
thanks goodness this crappy mom is speaking out.

the more she squeals, the more young women realize how first-world feminism is a total sham.
________________________________________

It’s coming. Every day some new 3rd wave brain-fart hits the news and gets folks scratching their heads.

Just the other day we learned about outspoken Me2 advocate Asia Argento helping her two-faced predator @ss to an underage male subordinate after being unable to shut her pie hole regarding the alleged actions of Harvey Weinstein. Talk about dousing an ideological movement with gasoline and lighting a match.

Then we have our own semi-comatose low functioning Minister of Climate Change asking us if we know that Climate Change is Sexist.

I have decent hopes for Gen Z. Western Feminism no longer has any reason to exist, and that’s why we see all these radical off the wall claims of how Women here still somehow have it so tough. The fact is there’s nothing legit left to tackle in the 1st world. There are some indications that Gen Z is forming negative opinions on radical hard left screeching insane nutbar feminism already before they get to post secondary.

Feminism (and those who live for it) need to take up camp in Pakistan, Saudi Arabia, India, China etc where Women ACTUALLY DO have major oppression exacted on them. You know – actually DO something for those Women in the world who surely need it. Women of the West don’t need it – especially the white ones.

If the Feminist brigade can not get any volunteers to take on the same risks for their ideas as the 1st wave predecessors did decades ago, and foreign born sisters do today, – then the entire lot of them are a intellectual and ideological fraud of epic proportions.

#150 Smoking Man on 08.22.18 at 10:52 am

Looks like Saudi Arabia is going to behead those female activist that T2 and company tried to free..

Barbarians.

Why is Canada still buying Saudi oil?
Build the pipelines now!!!
Energy independence now!!?

#151 Still learning on 08.22.18 at 10:57 am

Ljp – I appreciated your candor. My husband and I too are late to the party. We both made pretty good money through our 20’s and 30’s and now have little to show and I shake my head at myself sometimes. However, in the past 6 years we’ve been improving our spending habits and have some modest savings. Avoided buying a property in Maple Ridge at the Peak (thanks to Babe, uh I mean Garth!).

What’s the point in beating ourselves up (or beating someone else up) – it isn’t going to change anything and in fact makes it harder to make the changes happen – that is actually proven. But hey this is not the touchy feely blog – this is the macho man up blog (which definitely has its usefulness at times). Some of us women do need to toughen up. I mean I just told my husband the other day that if he didn’t shave that pretty face and clean that bathroom he’d be out on his ass!! cause I can’t deal with any ugly looking freeloaders…. ;}

so seriously now Late to the Party – thank your lucky stars you are waking up now. You are fortunate to have a good job, good relationship (it sounds like) and a wee one! concentrate on that and enjoy enjoy enjoy! I find the best thing I’ve learned from getting a bit older is to do what you can but not worry to much. Worrying gets you nowhere and in fact stress is the biggest instigator and cause of disease (including stress from taking anyone’s opinions too seriously). I for one appreciated your post.

oh yeah, and the folks that are recommending tracking your spending – yes! – very good advice – you will be surprised and you will then know exactly where it’s going and then can make changes. I have a gf who is an EA, lives in Burnaby and can easily save $10,000 about every 2 years to take great trips (on top of saving for retirement and bills). She rarely eats out – and she’s living in a basement suite at $700 a mo and deals with it. She says the not eating out is the biggest thing that helps. She also has a very part time job and she uses this income for her fun stuff (so she just lives off her EA income for bills) – which is what someone else said – don’t adjust to your new income… keep living like you were and sock the rest away…

#152 saskatoon on 08.22.18 at 10:58 am

#149 IHCTD9

what’s incredible is that these “advanced” women think that they are actually good moms–while commuting, working full-time, and dumping the little ones off with daycare strangers.

in reality, they are vastly selfish: prioritizing money over and above their own children.

their kids grow up knowing that they are not as important as those three annual vacations and new deck reno.–and their own mother would rather spend time banking than actually raising them.

sorry career moms, you suck.

#153 IHCTD9 on 08.22.18 at 11:17 am

#142 IHCTD9 on 08.22.18 at 9:46 am

But it’s no model for you, right? Frugality is an imposed necessity, not a goal. – Garth
________

Definitely no plans to be near broke in retirement here.

What they saw their parents do for retirement (sell the farm) is dead as a doornail. The reliance on OAS/CPP and forced side work is also now a dead end plan. Both those generations also relied on their kids to some degree. I’ll be there for them, but I hope to not rely on my own kids down the road.

Yes, they had no choice to be frugal, I respect what they’ve managed to do, and I’m happy they’re happy…

…but I’ve got no plans to be in the same boat as them at 65. I can’t really – totally different set of considerations today.

#154 Long-Time Lurker on 08.22.18 at 11:23 am

Hey, potheads. Research is showing that weed ages the brain 2.8 years while excessive alcohol ages it by 0.6 years. Like we all didn’t know that already.

http://www.dailymail.co.uk/health/article-6086073/Smoking-cannabis-ages-brain-average-2-8-YEARS.html

#155 Ponzius Pilatus on 08.22.18 at 11:29 am

I’m always late to the party.
By that time everyone is drunk and don’t notice that I did not bring my own booze and food.
The best booze always comes out later.
And don’t forget the Tupperware for the leftovers.

#156 Brick Top on 08.22.18 at 11:30 am

“When I throw a dog a bone, I don’t want to know if it tastes good or not”

#157 IHCTD9 on 08.22.18 at 11:35 am

#150 Smoking Man on 08.22.18 at 10:52 am
Looks like Saudi Arabia is going to behead those female activist that T2 and company tried to free..

Barbarians.

Why is Canada still buying Saudi oil?
Build the pipelines now!!!
Energy independence now!!?
_______

There you go 3rd wavers. This is an abomination. Get over there and support these poor Women and the ideals of Feminism where it’s so clearly and obviously needed.

I know there must already be HOARDS of young white 3rd wave Western born and raised Feminists suiting up to fly over…

#158 IHCTD9 on 08.22.18 at 11:48 am

#152 saskatoon on 08.22.18 at 10:58 am
#149 IHCTD9

what’s incredible is that these “advanced” women think that they are actually good moms–while commuting, working full-time, and dumping the little ones off with daycare strangers.

_______

I think Women would still be working today out of pure necessity even if Feminism never happened.

FWIW, Ms. IH took near 4 years off while we were having kids, and then returned to work part time – which she still does today.

Both kids are teens now, are both straight A students, and no major issues of note thus far, so it is possible to have both parents work without screwing up the kiddies.

I’m much more concerned about the potential effects of sending my two boys to a Canadian University not too far down the road…

#159 maxx on 08.22.18 at 11:52 am

#25 crowdedelevatorfartz on 08.21.18 at 5:58 pm

Great points.

Stupidity scale of each spend:

…….”Do you NEED a $100 pedicure?” Right….the essential “mani-pedi”. Unless medically necessary, SS=100%. Total waste and actually can be a health hazard if tools aren’t sterilized. No thank you.

“Do you NEED $200 shoes?” Less costly ones won’t ruin the home pedi. Unless medically necessary, SS=100%. Really trendy ones can be had for a small fraction of that.

“Do you NEED $5 Starbucks every morning?” If you really need to brand signal, ’cause SBX isn’t the only game in town, buy the branded mug and fill with your own. SS=100%.

Do you NEED a new car every 5 years? I’m not even going to rate this. Unless you sell for a living and need to visit clients. Duh.

“Do you NEED a “get away” vacation every year?” Ditch the gym membership and get out into the fresh air (sorry about the sunshine) for hikes and camping trips – you do live out on the left coast after all. SS=100%.

“Do you NEED designer baby clothes?” This one makes me want to hurl. The kid doesn’t give a rat’s behind. SS=500%.

That’s the trouble people have with building wealth. The weight of decades of conditioning through marketing gets the better of them. To become independently rich, you need a large dose of humility. You need to be humble enough to keep that car beyond the 5-year mark. You need to find creativity to avoid major and minor repetitive spends that drain your wallet and by extension your (and the child’s) future well being.

I totally believe that organic is the way to go – start with “the dirty dozen” list and avoid these like the plague. Look up “the clean 15”. Avoid anything in cans (BPA, plus many foods are actually COOKED in that BPA-lined can) as well as most processed food……mind the machine-cleaning solvents. If vegetarian, buy organic pulses to avoid glyphosate as it is (also) used as a crop dessicant to aid in harvesting (!). Cook your own food. That alone will more than make up for the organics you invest in. Converting your pantry to organic takes time but is doable and won’t cost much more than non-organic – if you don’t buy organic junk food and source your organics wisely. You will simply be shifting costs around as some stuff will cost more and some less. Long-term health care will cost way less.

Bottom line: Wealth-building is a long-term project requiring determination, a $hit-faced attitude towards all things retail, relentless effort to keep both eyes on the ball and a f/u approach to the Joneses. It’s not sexy, only the result is.

A handy exercise to track the hit on future well being with wallet drainers: take, for example, a bottom-rung coffee at any coffee shop for, say $2. Multiply that by 5 days per work week, times the average 48 weeks/year. Forget about the muffin. $480. Add your income tax already paid, say, 30%. $624. Multiply by 25 years of work. Result: $15,600. A single small-item, line item. Project this onto any other spend and there is your retirement pile. (Never forget to add income tax paid, nor the lost opportunity cost of savings) Then take this to a whole new level and check out discount, second-hand stores and online resellers. The deals are mind-blowing.

Like I said, not sexy but the result is like building a fortress one brick at a time. Hard work for some, but mostly only at the beginning until habit kicks in.

It works. Many have done it.

You then get to retirement and the weird thing is that life suddenly looks almost identical to all of the comfy-cozy, smiley, sun-shiney ads banks spew out ad nauseam.

Only better, because it’s for real.

#160 Mr Buyer on 08.22.18 at 12:11 pm

So I might jump into the vermiculite removal business. Anybody need any removed from their attic?

How did we go from being a KD blog to a vermiculite one? – Garth

#161 James on 08.22.18 at 12:15 pm

#157 IHCTD9 on 08.22.18 at 11:35 am

#150 Smoking Man on 08.22.18 at 10:52 am
Looks like Saudi Arabia is going to behead those female activist that T2 and company tried to free..

Barbarians.

Why is Canada still buying Saudi oil?
Build the pipelines now!!!
Energy independence now!!?
_______

There you go 3rd wavers. This is an abomination. Get over there and support these poor Women and the ideals of Feminism where it’s so clearly and obviously needed.

I know there must already be HOARDS of young white 3rd wave Western born and raised Feminists suiting up to fly over…
________________________________________
I suggest Smoking Man lead them to the fight!
Now what are the leaders of the free world (The USA) saying about this??????

That’s weird all I hear is crickets. Come on Donald J Trump show us you have balls!

Oh, Cohen and Manafort have them right now. Never mind!

#162 kick out the jams on 08.22.18 at 12:23 pm

Mic. Drop.

#163 Oft deleted much maligned stock.picker on 08.22.18 at 12:28 pm

Isn’t Trudeau yapping about the admiration he has of Cuban style socialism? Castro’s protoge has impressed the great mind of Gerald Butts. Wow?

https://www.nbcnews.com/slideshow/see-how-many-bills-it-took-buy-chicken-venezuela-n902491

Yup ….socialism is the best.

#164 saskatoon on 08.22.18 at 12:44 pm

#158 IHCTD9

i understand, and am largely talking about babies/young toddlers.

additionally, i wouldn’t be bragging about your kids being straight A students.

#165 Smoking Man on 08.22.18 at 12:50 pm

James, everybody knows it’s a witch hint.
On both sides of line. Like watching a sporting event.

FBI to Cohen.. Sing our song, here are the lyrics.
If not life in prison.. Sing it and you will be out in 6 months. He’s lawyer is die hard hilliary supporter. On MSM saying Trump did a crime, which is not a crime.

This is a nothing burger, designed to rally the mind fkd for the midterms.

#166 SoggyShorts on 08.22.18 at 12:50 pm

#133 Remembrancer on 08.22.18 at 8:55 am
#121 majik on 08.22.18 at 3:49 am

I have no idea were people get this idea that $15/hr is the minimum wage. I guess either through naivety or ignorance, trés Canadien.
—————————————————————-
Maybe a hold over / herd memory

********************************
That’s on me, I really should have looked it up.
I just can’t imagine making $18/h in vancouver 2 years ago when I was making that much swinging a hammer out of highschool almost 20 years ago in AB.

#167 Sask to AB on 08.22.18 at 1:01 pm

re #33 The Wet One on 08.21.18 at 6:19 pm

Location, Location, Location. It is the number one rule in real estate for a reason. We are the little fish(smallest house) on a big fish street in Calgary(one of the estate areas). Buy in the best area you can afford, certainly doesn’t need to be the biggest house, a smaller house is better. Find out about crime rates from the police in any area you are considering. Transit is important. Where is the nearest C-Train station and bus stop. Good luck.

#168 IHCTD9 on 08.22.18 at 1:07 pm

#164 saskatoon on 08.22.18 at 12:44 pm

additionally, i wouldn’t be bragging about your kids being straight A students.
_______

Why not?

#169 IHCTD9 on 08.22.18 at 1:12 pm

#163 Oft deleted much maligned stock.picker on 08.22.18 at 12:28 pm
Isn’t Trudeau yapping about the admiration he has of Cuban style socialism? Castro’s protoge has impressed the great mind of Gerald Butts. Wow?

https://www.nbcnews.com/slideshow/see-how-many-bills-it-took-buy-chicken-venezuela-n902491

Yup ….socialism is the best.
_______________________________

That’s insane! 14 Million six hundred thousand dollars for a… chicken.

Kiss the Bolivar goodbye, it’s too late.

#170 Wrk.dover on 08.22.18 at 1:12 pm

Fresh out of debt and through with self employment, while cruising the continent on my wife’s first of four, year long deferred salary leaves, we stayed some days with an early childhood friend living his dream on a Montana mountain valley gravity irrigated starter ranch.

One evening I mentioned that I get a lot of heat back east over my wife making more money than me and so on.

He told me if I were to stand at the end of his driveway starting at dawn, eighteen cars or trucks would be going by with workers heading to town or right on through to Boseman in one direction or to Billings in the other. They would all be wives. Women he explained to me, like to put on nice clothes, drive somewhere and have a day life working off of the ranch, so that is what they do in Montana.

That sunk in to us, and at the end of that trip, which was followed by a god send nineteen week high paying job for me followed by max pogie, at thirty five I became a full time employee of us, on property. No income. Those job proceeds fed my hobbies for over 15 years.

While Mrs. IH for example, finishes building her DBP, Mr IH can either work gratis for IH inc, or continue to overfill the bank of Mom and Dad for his kiddies benefits as I see it from my porch.

I sure would not want to be doing the manual work I did for us in my sixties that I got done for us in my prime fifties while my Mrs. almost topped off her DBP. We are certainly glad that we got to do it that way. It went very well and has made things extremely well.

There is nothing frugal about making instead of buying. CRA does get left out in the cold though when there is no money being earned.

My wife, now sixty seven has been retired a dozen years and there has been no frugality in her being able to fill two TSFA’s all the while. That is our inflation protector. With inflation, gradually she may not be able to contribute as much followed by at all, then having to draw them down. No sign of that problem yet though.

Isn’t that what you had in mind for TSFA’s at their inception Garth?

#171 Shawn Allen on 08.22.18 at 2:00 pm

Who Will end up with $2 million in investments?

AGuyInVancouver on 08.21.18 at 8:24 pm said:

I wonder how many Canadians without a good Defined Benefit pension retire with $2 million in savings? I’d wager not many.

************************************
Agreed, in part because for the most part reasonably high wages and a DB plan go together (many government jobs, banking jobs, rail road jobs, utility jobs, probably life insurance companies).

Those with the best DB plans often had good salaries and paid into RRSPs (even at the modest amounts allowed) and more recently paid into RESP and TFSA.

The people with DB plans who were also savers may well come out with one to two million invested assets. This in addition to their DB pensions.

Oh, and they were also the ones who could most easily afford a house back in the day and won that lottery too in many cases.

Others without DB plans but who had good wages or were business owners and go getters and/ or prodigious savers may also have that one to two million in invested assets. But I suspect the DB crowd had and still have an easier time getting there.

As far as the average couple getting to $1 million, let alone $2 million, forget it! First of all by age 65 in terms of finances, almost no one is average. There is a huge wide dispersion of wealth. Forget average just look after yourself. Do what you can while being balanced in life and finances.

#172 Winter Tiger on 08.22.18 at 2:05 pm

Excellent response Garth. You went in on this egregiously entitled woman. She is actually upset she didn’t get your services for free.

And wonders why she’s in the position she’s in.

Vancouver….

#173 Just me on 08.22.18 at 2:49 pm

Dear Garth Turner,

You are a very bad man.

The end.

#174 releasethesecretinfo on 08.22.18 at 2:58 pm

So exciting:

The most significant shakeup of real estate data coming soon:

https://www.ctvnews.ca/canada/key-decision-coming-in-battle-over-greater-toronto-area-real-estate-data-1.4063251

#175 Duke on 08.22.18 at 2:58 pm

#149 IHCTD9

I’m much more concerned about the potential effects of sending my two boys to a Canadian University not too far down the road…

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

Why? Canadian Universities are fine and better than many American ones. Cheaper tuition is also a good thing. What matters is what major they choose. Would you be willing to pay $70k/year per person to send them to private universities in US? You’d better put that money to your investment portfolio.

#176 TO Guy on 08.22.18 at 3:06 pm

The one thing I can’t stand about this blog is the constant jabs at people 40 and under… we have been handed a lousy situation compared to the boomers. Can we do well in it? Yes, people that are financially literate. But people are about to have their heads handed to them for having too much debt and buying too much house.

Boomers could buy cheap houses on an income/price ratio that today’s generation will never have the chance to purchase at. Pensions…. pretty much gone. Stable jobs…. going fast. Unless you are counting Uber and Lyft lol. Better to be self employed. Education system? Falling apart. But my point is I think people are doing the best they can with the situation they have been handed.

I have a stock portfolio and rent in a downtown condo with my wife and 8 month old. No debt. But we made an effort to build a large stock portfolio and save save save. That is the priority…buying a home is not on our mind. Considering what you can get for your dollar these days.

Point is…to the 30 40 somethings… just do the best you can and save and invest. Forget about the glamourous car and house. All cycles end… whether now or in 5 years…doesn’t really matter to me. I plan on being financially stable at any cost.

#177 James on 08.22.18 at 3:22 pm

#165 Smoking Man on 08.22.18 at 12:50 pm

James, everybody knows it’s a witch hint.
On both sides of line. Like watching a sporting event.
FBI to Cohen.. Sing our song, here are the lyrics.
If not life in prison.. Sing it and you will be out in 6 months. He’s lawyer is die hard hilliary supporter. On MSM saying Trump did a crime, which is not a crime.

This is a nothing burger, designed to rally the mind fkd for the midterms.
________________________________________
First it’s a witch hunt!
Not a witch hint.
That would be something a witch would suggest to you as an indicator of something you did not know or were unaware of.
Cohen as a lawyer was Trumps fixer you injudicious ass. That is a fact. His number one job was to do his bosses bidding with no recourse for the rule of law. His own lawyer’s proclivity towards any one party of the other has nothing to do with the fact that Lanny Davis represents his client’s best interests. As for “Trump did a crime which is not a crime” is akin to his dumb ass layer Giuliani saying “truth is not truth”. Time will tell on that one. Paul Manafort was convicted by a jury of his peers. For you to say it is a “witch hunt” is an insult to the justice system. So go and enjoy your nothing burger old man, that is if you can find your missing teeth in your drunken stupors.

#178 IHCTD9 on 08.22.18 at 3:29 pm

#175 Duke on 08.22.18 at 2:58 pm
#149 IHCTD9

I’m much more concerned about the potential effects of sending my two boys to a Canadian University not too far down the road…

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

Why? Canadian Universities are fine and better than many American ones. Cheaper tuition is also a good thing. What matters is what major they choose. Would you be willing to pay $70k/year per person to send them to private universities in US? You’d better put that money to your investment portfolio.
_____

I got no problem with the academics, it’s the political indoctrination I’m worried about.

It was already bad in the 90’s within certain programs – I can’t imagine how bad it is now, say at UofT.

#179 A J on 08.22.18 at 3:37 pm

Her response literally sent a chill up my spine. *ugh* Only because I know so many of these “can I speak to your manager?” Moms who are overly offended at everything, think the world revolves around them and that they’re too special to be challenged and questioned. News flash lady, you’re not special. You don’t deserve special treatment. Stop acting like the sky is falling when someone spits some truth your way. Not everything is sunshine and rainbows. Sometimes, people will challenge you. Sometimes they’ll offend you. Sometimes they’ll say something you *gasp* don’t like. Get off your high horse, shake off your snowflake mentality and grow up. *Rant over*

#180 Bytor the Snow Dog on 08.22.18 at 3:43 pm

158 IHCTD9 on 08.22.18 at 11:48 am sez:

“I’m much more concerned about the potential effects of sending my two boys to a Canadian University not too far down the road…”

——————————————–
So don’t. You of all guys should know better. Have them get a trade.

#181 AGuyInVancouver on 08.22.18 at 3:45 pm

#152 saskatoon on 08.22.18 at 10:58 am
#149 IHCTD9

what’s incredible is that these “advanced” women think that they are actually good moms–while commuting, working full-time, and dumping the little ones off with daycare strangers.

in reality, they are vastly selfish: prioritizing money over and above their own children.

their kids grow up knowing that they are not as important as those three annual vacations and new deck reno.–and their own mother would rather spend time banking than actually raising them.

sorry career moms, you suck.

How sad this kind of misogynistic crap is tolerated on this blog.

Seems the comment is about parenting, not women. – Garth

#182 Aging in vancouver on 08.22.18 at 3:53 pm

I got around to reading the “victim’s” email from a couple of days ago. Even though she did a major financial realignment of selling her condo and paying off her debt, and seems to sincerely want to know how to manage her finances, I thought your advice was overshadowed by telling her basically that she was a stupid, entitled imbecile. It was just plain mean.

#183 TorontoBull on 08.22.18 at 4:06 pm

Someone recommended Malcolm Hamilton – thank you!
I suggest that Late to the Investment party watch the video below:
https://www.moneysense.ca/save/retirement/retire-rich-malcolm-hamilton-on-how-much-canadians-are-saving/

#184 Cici on 08.22.18 at 4:22 pm

182 Aging

I honestly don’t think his post was mean. He was trying to knock some reality into. Paying off debt is one thing, but she shouldn’t have had such a high-debt to low-savings ratio in the foirst place. He sincerely wants to help her, but she needed a good wake-up call. She and her spouse have a good income, but they’re spending beyond their means and putting their relationship and family in jeopardy by doing so. If she stops making so many excuses, gets her spending under control and starts being more accountable/less spoiled, she could create a winning situation for herself and growing family. And she doesn’t need to eat KD or forego all future vacations…just downsize on those luxuries and find cheaper ways to eat well and have a great time. But if she wants to win the game, she’s gotta step up to the plate.

#185 jess on 08.22.18 at 4:32 pm

“irony poisoning.”

A pro refugee town :
“When refugees first arrived, so many locals volunteered to help that Anette Wesemann, who runs Altena’s refugee integration center, couldn’t keep up. She’d find Syrian or Afghan families attended by entourages of self-appointed life coaches and German tutors.“It was really moving,” she said.

That algorithm is built around a core mission: promote content that will maximize user engagement. Posts that tap into negative, primal emotions like anger or fear, studies have found, perform best and so proliferate.

That is how anti-refugee sentiment — which combines fear of social change with us-versus-them rallying cries, two powerful forces on the algorithm — can seem unusually common on Facebook, even in a pro-refugee town like Altena.

* if only a minority of users express vehement anti-refugee views, once they dominate the newsfeed, this can have consequences for everyone else.

https://www.nytimes.com/2018/08/21/world/europe/facebook-refugee-attacks-germany.html

#186 Ex PIMCO man on 08.22.18 at 4:33 pm

Hey Smoking Man, one of my friends just got a hit on an job back at your neck of the woods for a Senior Data Engineer- Data Acquisition at PIMCO. He is a super genius when it comes to programming. He is young at 27 but experienced. Wont take the job unless he gets above what they offer though. PIMCO is a little on the light side for hiring experienced professionals. Ha who knows he might be your next boss.

#187 Grazie on 08.22.18 at 4:39 pm

To Late,

“And the truth shall set you free”, but it will make you miserable first.

#188 Bdwy sktn on 08.22.18 at 5:06 pm

sorry career moms, you suck.

How sad this kind of misogynistic crap is tolerated on this blog.

Seems the comment is about parenting, not women. – Garth
……….
Hey the parent best able to run a household ,mom or dad, should be the one to do it, assuming equal earnings potential and one can afford it. A home parent who can parent as well as cook, swap out a water
heater/roof/bathroom/whatever and do the brakes on the truck (and self manage a kickass portfolio) saves/makes a LOT of cash every month with no taxes on any of it.

Many need the 2 jobs to feed the kids, minus the deck and vacations, we are all not so lucky or clever.

……
Re IH kids to college. Mine goes next year. Stick to any hard science and there is zero class time for stupid sjw crap. She,s an A student too. U weren’t bragging as I saw it. His kids probably flunked out.

………
James . Manafort is a diet, gluten free, zero fat, tasteless nothingburger. U lose on that one.
Cohen paid off a porn star and some other grown woman who leapt into his bed (yuk!) . Billieboy just did it in the oval office, no bed needed. Stop the crybaby antics over other ppls sex lives. Powerful/rich men will continue getting easy tail like always. How do u feel about his upcoming second term?

#189 Barb on 08.22.18 at 7:24 pm

#38 Missihippi on 08.21.18 at 6:34 pm
————————————————–

“To the letter writer: take responsibility for your actions that led to your current financial position. And please don’t bitch about free advice.

Exactly!
Nail, meet hammer!

#190 Phylis on 08.22.18 at 7:55 pm

Wow. Just wow.

#191 AGuyInVancouver on 08.22.18 at 8:08 pm

Seems the comment is about parenting, not women. – Garth
– – –
Really Garth do you honestly believe that? The misogynist poster could have written “sorry career parent, you suck” if that was his intent.

If the poster thinks daycare is evil, that’s a valid position. – Garth

#192 More Marsupials pls. on 08.23.18 at 1:06 am

WOMBAT the acronym seems apt for Late, but wombat the animal is adorable! Garth, you make me look things up all the time – I’m sure I learned more about square poop (marking territory one cube at a time. Bonus: the dung beetles can’t roll it away!) than Late learned about finance, sad.

Late, not much separates you from the needle-users: you both want it all now and it’s not your fault. And you’re both breathing in the worse air pollution in the world right now. Worth it, eh?

Garth, please know that there are those of us who have quietly improved our situations and outcomes because of your willingness to share your knowledge. Thank you. Scritches to Bandit.

#193 Sasquatch on 08.23.18 at 7:55 am

Hey Late,

My wife and I earn about half of what you do ($6500/month net) and we pay about $2000 on our mortgage (so unlike your rental situation, we occasionally get hit with maintenance – $7000 for roof replacement last summer – as well as higher insurance and property taxes than a renter would have) and we still manage to sock $1000 to $2000 per month away.

You need to do a budget. Add up everything you spend in a spreadsheet, then at the end of the month tally it up. Then you can make your own decisions about where to save.

Once you see how badly you are bleeding money on frivolities like eating out (make your coffee at home) or organic baby food (as was suggested above, blend your own) then you can get it under control.

You have access to the font of human knowledge, commonly called “google”, start firing off searches “how to save on …” so if the idea of saving money by making your own baby food is new to you, you can learn.

#194 CJ on 08.23.18 at 12:58 pm

My wife and I chose to go down to one income so we didn’t have to shuttle kids to and from day care and trust strangers to help raise them. That means sacrifices.

I would say the majority of families I know where both parents work full time are choosing to do this to have more vacations, bigger houses etc. Very rarely have I encountered a family where two incomes are necessary.

It’s a choice.