Hide the denture paste, prostate cushions, Depends, penile splints and fecund RRSP accounts, Boomers, because it’s Mill Day here at GreaterFool! You wrinklies have had six decades to figure stuff out, and most of those years were, well, groovy. Now the kids are having a tough one coping with stupid house prices, a lackluster economy, soaring rents and a pile of debt for uni degrees that look dubious (to be kind). Alas, they hate us. Such a relief that we don’t care.
Anyway, let’s spend a few minutes trying to make amends with some seasoned, Boomer-tested advice. Here’s Nat:
Hi Garth, I really enjoy your blog! However, most of your advice is for people who have large savings or are interested in real estate. I was wondering if you could share some advice for first-time investors with smaller savings?
I’m a 20-year-old college student (Business Administration & Marketing) with a general understanding of how the markets work, and $9,000 in the bank that I want to put to use. I currently have $3,000 in a TFSA, using a one-year GIC with a yearly interest rate of 2.5%. I make an average of $25,000 per year, still live at home and will for at least four more years (in the Windsor area). I am talking to advisors from different banks as part of my research. But I was hoping you might be able to share some insight on to which areas I should invest in, and when to start. I also have no plans on buying a home for many years.?
Thank you for your consideration, PS; I believe a puppy picture would make a nice header for this topic.
Sounds like you’re studying something useful, Nat, at the same time as you’ve got a PT job and having mom wash your shorts. Good call. As for your finances… (a) take all of the bank cash and dump it into your TFSA. It’s the best vehicle to use since all growth is taxless and RRSP contribution room should be saved for future years when you are earning more than slave wages. (b) Trash that awful GIC since you’re wasting valuable TFSA space. Being a moister you should own growthier assets, then ignore temporary volatility (which most of the doddering old farts who read this blog seem incapable of doing). (c) And stop talking to [email protected] You’ll end up owning a few expensive, dodgy bank mutual funds sold to you by someone who owns a Kia. ETFs are far superior – cheaper, more liquid, nicely diversified.
Given the small amount you currently have, five funds would be sufficient. Put a quarter into US equity (lots more to come), the same into the Canadian market (it’s cheap), 20% into preferred shares (oversold, on sale), 20% international (currently battered) and 10% into REITs (solid). (This blog does not recommend individual ETFs, for a host of good reasons. Go with the majors. You can figure it out.)
Finally, never tell your mom you’ve become an investor. You pay no rent. Don’t blow it.
Now here’s Patrick, also a mill but shacking with his GF in DT TO. “Yes,” he says, “I know we should be married.” Compared to Nat, these kids are rich.
Together we have a household income of $300-400k. We are both in sales so it varies. And have combined savings of around the same – all in a mix of maxed TFSAs, RRSPs and cash savings. Today we rent a nice, one-bedroom place that is just enough room for us at $2,200.
As said, I am bearish about the housing market generally but I have fallen for the idea of buying a cottage, renting it out on Airbnb when we can and keeping our rental in the city. Neither of our families have a cottage there and we have flexible arrangements with our jobs. This keeps us enjoying the flexibility we need, a place we can retreat to and (hopefully) not be over extended.
After six months, and as many trips, we have landed on a decent waterfront that we think we can get for $650,000. We plan to put about $50-60k into it and hold for the next 5-10 years. Now that it’s the colder side of a cold Fall market, we think it’s the time to strike.
I know cottages are a very esoteric property type, with value depending lake-by-lake, but what are your thoughts on that side of the housing market? I am worried that vacation homes are more sensitive than normal homes and that current values are just due to the goosing we have seen in southern Ontario. However, I am fearful that the worst has happened, like how it looks in the GTA. And that these types of homes will become more in demand (with very limited supply) as Millennials look for city getaways and boomers look to downsize. Is it a great time to buy or still too early if one is risk averse?
I’d love to know your thoughts. We are on the fence and need a brutal assessment
You’ve come to the right place for brutaity. Let’s begin.
Why are you buying a property that’s hundreds of km distant, requires constant maintenance, is costly to insure and finance, that you don’t need and will never live in full-time? Simple. You’ve got real estate lust and believe you can’t afford what you want in the city.
It’s a myth and romantic fabrication that you’ll spend bucolic getaways in the woods with the bugs, since it’s going to be AirBnB’d to a stream of messy, disrespectful, cheap vacationers. Yuck. As for cottage FOMO, you’ve got to be kidding. Secondary properties are far more volatile than those in an urban location, and take a hit when the economy slides as people realize they were piddling money away on a rec property. Just like a boat. Or a horse. Might as well dig a hole in the bush and shovel your $400k into it.
Dude. Buy a house in timeless Leaside. You can well afford it. Get a plastic moose for the backyard. And marry her.
104 comments ↓
For once I disagree. Active life is short, a lakeside retreat is great if you enjoy the outdoors. Mine kept me sane as I migrated from full time senior job madness to a part time consulting role. Still have it even though I am a few thousand km away most of the time…..
Good Lord!
A 20 year old kid with 9 grand saved and several k invested?
I should have been so lucky at 20.
Keep it up kid yer doing great!
Retired by 55 and laughing at your Mil friends I’m sure…..
As for buying a Rec Property and watching AirBnB people use( trash?) it?
Been there done that only it wasn’t Anonymous AirBnb…it was friends and relatives that cost me thousands……. lesson learned. If I cant drive by on weekends to fix stuff. Aint worth “owning”.
“Buy a house in timeless Leaside.”
Looked up the area for fun and found this…
https://www.thestar.com/life/homes/2018/04/28/opening-doors-in-leaside.html
Ross Kay on HoweStreet.com Radio:
GM Layoffs Big Blow to Ontario Real Estate.
How to survive a correcting Real Estate Market.
https://www.howestreet.com/2018/11/26/gm-layoffs-big-blow-to-ontario-real-estate/
You’re much better off buying a sailboat. For a yearly fee of approx. 4K, you can have a floating cottage in the city. Costs next to nothing for fuel. Not to mention great contacts for sales. Lots of learn-to-sail courses and lots of people around the yacht club to show you the ropes. We’re a friendly bunch! You can pick up a used 30′ sailboat for 20K.
http://abyc.on.ca/
#5 – graphics girl… Clare? Is that you?
@ The Flopster
Never mind the anti immigrant rhetoric let talk bovines.
My Canuck cow is bigger!
https://www.cbc.ca/radio/asithappens/hold-my-steer-how-dozer-the-massive-manitoba-bovine-owned-twitter-1.4927632
“Given the small amount you currently have, five funds would be sufficient.” — Garth
What is wrong with the 5 fund approach even if you have 6 figures ???
World Trade Recession Warning
Buying stuff is easy when you have disposable income.
Selling stuff is difficult when buyers choose to save.
So if you want the Canadian economy to outperform, then drain your savings and buy stuff.
Meanwhile…
The WTO released its current global report 4 days ago with some interesting charts that I have mashed up here:
http://www.chpc.biz/history-readings/world-trade-recession-warning
Notice that 3 of my ongoing chart studies included in the post appear to agree with the WTO findings.
1) Canadian National MLS sales peaked in January 2017. Two of the six WTO metrics were already in recession.
2) The 10yr less 2yr yield metric was at its last major wide in January 2017 and now is only 16 bps from inversion.
3) Since January 2017, there have been 21 unbroken consecutive negative Net Trade prints.
Check your income sources before you leverage your purchases… especially in December when FOMO is rife.
i don’t understand the mentality of taking on debt to buy a rec property . We have a truck camper sitting ten feet from our house that we barely use . I can’t imagine having a “cottage” hours away even remotely being used enough to justify owning it .
update
https://globalnews.ca/news/4710738/panama-papers-deutsche-bank-raid/
#5 Graphics Girl on 11.30.18 at 5:32 pm
“You’re much better off buying a sailboat. For a yearly fee of approx. 4K, you can have a floating cottage in the city.”
Agreed, but they might be better off starting with a smallish powerboat, especially one that can be trailered*. It cuts out a lot of complexity to begin with. I say that as a sailboat owner in the 1000 Islands. Although Ashridge’s Bay is great!
Or start with a rental (charter) to see if you they the lifestyle. Some people don’t like sweat, bugs, seasickness and sunstroke. Not to mention bottom scraping.
*Awesome reason to buy a truck, natch.
Graphics Girl…I love sailing. I love boats. And I love other people. Most of all I love sailing on other people’s boats. But owning one? Moorage, maintenance, fuel, new sails, paint, electrical systems failing…
Well done Mil #1. You have lots of contribution room in the TFSA and you might want to go with 90% in Garth’s balanced ETFs but keep an eye out for undervalued opportunities with the other 10% – virtually the whole junior mining and exploration space is trading at rock bottom.
Mil#2…Well done as well. But why buy any property at the moment? A few more years of 300-400K and you can buy a really nice property and have money left over with a reasonable mortgage.
Hey Nat,
It’s great you’re getting started so early. Congratulations!
If you are banking with TD I highly recommend looking into TD E-Series index mutual funds.
They are free to buy and sell and are great for beginner investors that add relatively small amounts each month. They’re Management Expense Ratios are a bit higher than ETFs but not by much but won’t have a negligible effect on small sums. Once you amass more wealth (and you will) you can than switch to ETFs if required.
ETFs have a $9.99 commission at the major discount brokerages (save for Questtrade). These commissions can eat in to your returns if you reinvesting a small amount each month.
Finally, if your school offers a coop placement do your best to enrol. You will be able to hit the ground running upon graduation and will have a network to lean.
#10 diharv on 11.30.18 at 6:09 pm
“i don’t understand the mentality of taking on debt to buy a rec property . We have a truck camper sitting ten feet from our house that we barely use.”
Another great reason to buy a truck!
Why buy a cottage when you can enjoy an adventure on the lake system. Just saw a bargain for sale in Toronto that is a 36 foot Catalina MK 11 for $70,000 and the interior looks all new – learn to sail. Most sail with a dinghy, and drop anchor to visit towns along the way. Coming back just sleep on ship, and continue on for the next adventure. Never seen a more beautiful interior ever than this yacht has.
#7 crowdedelevatorfartz on 11.30.18 at 5:49 pm
@ The Flopster
Never mind the anti immigrant rhetoric let talk bovines.
My Canuck cow is bigger!
https://www.cbc.ca/radio/asithappens/hold-my-steer-how-dozer-the-massive-manitoba-bovine-owned-twitter-1.4927632
——-
Big cow, great name! :)
Having 5 funds in a $10k portfolio seems like a little much if they are ETF’s. The cost of the trades from rebalancing will eat away at the return. For that amount just go ROBO in your TFSA. Revisit when you have more capital.
Just like…. my opinion man….
A lot of money for a “cottage”. I had a “cottage” on a lake in central B.C. (the Cariboo) and it cost far less but it was 5 hours drive from the suburbs of Vancouver. It was a great experience but it was also affordable and I could buy a home at the same time. Perhaps something simpler…a lot on a distant lake where you could come with a tent trailer and then maybe slowly build afterwards. Too much money invested in a “cottage” can be a problem. Sometimes lots and cottages are “hot” other times the market is very slow. They are a luxury…but a nice one if you actually use them. However, I got to see a number of cottages that were rarely used and when the owners came to stay they spent their entire time working on their cottage to repair the damage that Mother Nature had wrought. We joking called it a “working vacation”. Perhaps try renting a cottage each summer for a couple of years and find out how it works. I spent 10 years with my cottage and loved it but saw a number of cottages bought and then sold a few years later because owners rarely used them.
Penile splints eh?!
No one told me it would be like this…
Nat you have lots of time on your side. Sure Garth’s recommendation is more prudent. But if I were you I’d buy a couple individual stocks too (like a share in Amazon) or a company that you see as being important.
Why would you marry a plastic moose?
The two best days of boat ownership (or RV ownership) are the day you buy it and the day you sell it.
Now I’ve never used a financial advisor but if he pulled up in something expensive I’d be asking him to change that 1% to 50bps.
And sadly the only advisors willing to take on a book of business full of Nats…well they do drive Kias.
@#22 Angie
Because the real ones just draw flys and criticism!!!
LB
#8 young & foolish on 11.30.18 at 5:52 pm
“Given the small amount you currently have, five funds would be sufficient.” — Garth
What is wrong with the 5 fund approach even if you have 6 figures ???
I would have more than that just for simple diversification. Think about it – if each ETF has about 50 holdings, that’s only about 250 holdings. I know some have more, but some have less, too.
There is risk in the number, type, sector & region of each holding. More holdings spread out the risk through each of those sectors, types & regions.
Then consider an active vs. passive ETF approach. Which is better? Sometimes active, sometimes passive. But why not both? You can balance your ETFs between passive & active funds as well, and reduce risk.
#18 Guy in Calgary on 11.30.18 at 6:34 pm
Having 5 funds in a $10k portfolio seems like a little much if they are ETF’s. The cost of the trades from rebalancing will eat away at the return. For that amount just go ROBO in your TFSA. Revisit when you have more capital.
Just like…. my opinion man….
If you are making regular contributions anyways, you can just allocate how much goes to each fund through your contributions. You were going to spend the commission on the contribution anyways. So instead of selling US to buy CAD, keep the US, and bump up the percentage on CAD holdings while holding off on bumping up the US holdings. Use the percentage weightings as you guide. I most recently made a contribution, seeing that my Pref’s had dropped below there weighting due to last weeks fire sale, and bumped them back up to the desired weighting. Now they are set to rocket, if they do, I hold off on buying more until the weighting requires it. I am constantly contributing, so the commission would be paid anyways.
So there’s smart, and there’s hard. You only have to pick one of ’em.
#26 CEW9 on 11.30.18 at 7:18 pm
If you are putting them in index funds or MF’s sure. What was recommended were ETF’s. Generally to buy/sell which is required with new contributions and rebalancing it is around $9.95 per trade. With 5 funds that gets expensive fast with a small nest egg.
I’m with Graphics Girl. Good recommendation.
The marina community is a much better choice than hanging out at a boat launch ramp.
And stay away from a Catalina. Those are “boat show boats”. You’re in C&C territory so if you do it, go with the legend.
I bought my first boat, a runabout, at 12 years old with my paper route money and can count the number of months since then that I have not had a boat. 40 years of yacht ownership once I had a house & good job. (or is that a good job & house?)
For a few years in the 80s recession we looked at waterfront places in the Gulf Islands when they were really cheap (Ruxton Island 1/2 acre, 200 beachfront @ 27,000 cheap) but yacht ownership always came out better. More adventure, easier to keep up, no regional taxes and if you don’t like the neighbour then weigh anchor and go for a wee cruise.
Mortgage rules now ‘overkill’ that are hitting millennials particularly hard, home builders say
https://business.financialpost.com/real-estate/mortgages/time-to-relax-mortgage-regulations-canada-home-builders-urge
Dear Mr. Turner,
Maybe you should consider new glasses.
Young Nat wrote: ” PS; I believe a puppy picture would make a nice header for this topic.”
He did not write “poopy picture…”
Damn. – Garth
Dear Patrick,
What exact line of « sales » are you and the GF in? I’m currently unemployed, hardworking, somewhat chatty but mostly charming, and that annual compensation that you sll are bringing in sounds just about right to me…
My sign reads « Will work for YUGE $ »
Thanks and hope to meet you at the watercooler soon!
Garth, you have cornered the market on well healed Mills that read your Blog. Curious if indeed that hypothesis was true, so for proof I went to Statistics Canada’s interactive table titled:
“Tax filers and dependants with income by total income, sex and age”.
For the $300,000 to $400,000 total income per year Mills I assumed $400K/2 = $200K each, this is how many there were in ALL of Canada for the year 2016:
0-24 yrs of age = 610 (0.00225% of total)
25-34 yrs of age = 17,600 (0.065% of total)
As for 20 yr old Part Time Junior at $25,000 per year, he/she is more common, for the year 2016:
699,200 of them (2.6% of total)
There were 27,090,400 people reported by the stats for the year 2016. The percentages above were calculated on that total number.
2016 Median total income per individual was for the year 2016:
$34,420.
https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1110000801
(use Add/Remove data and Filter using Reference Period and Age Group…hit Apply).
That’s a pretty elite and sparse crowd you have cornered Garth to say the least (actually, not a crowd more like a small, even for Lunenburg, Coffee Klatch).
Nicely done.
You AGEIST you (…denture paste, prostate cushions, Depends, penile splints and fecund RRSP accounts…). In light of yesterday’s Blog Comments, thought I’d get the ball rolling this evening on the subject of age discrimination.
Too soon?
—————————————–
PS: I laughed at the denture paste reference and I had to search if there was indeed such a thing as penile splints (…oh, there it is: EREKTOR invented in 2014).
Turner, there are days I wonder about you.
Ya, I know this time no penultimate, nothing but the real Buonanotte.
There is no way I’d own a cottage again, unless it was our principal residence. Loved the lakefront, peace and quiet, not the taxes, utilities, repairs, maintenance costs.
Just like a boat a horse or a watercar.
I’m just going to point out that at 20 with 9k in cash, I’d be having a helluva good time. Most people I know came out of university with practically 0 saved at 23-24, and we’ve all done just fine.
On the same level as pigeons…
https://www.cnn.com/2018/11/28/us/dog-smart-study-special-trnd/index.html
…….Aaaaaand just when you thought things in Northern BC couldnt get any stupider than the fiscally disasterous Muskrat Falls in Labrador……….
BC is determined to , in Christy Clark’s famous statement,……. “Build it to the point of no return…..”
The Liberals spent 3 billion and then the decision to proceed or stop ( with a $1 billion dollar clean up cost) fell to the newly elected NDP……..The Dippers blinked and kept building…..
https://www.cbc.ca/news/canada/british-columbia/earthquake-fort-st-john-fracking-1.4927898
“Frack-quakes” right under where the Site C earthen Dam ( $6 billion?, $9 billion?, $11 Billion)is being built on top of clay………aaaand they keep on fracking……..
Stay tuned folks, this Site C Dam will be in the News some day and it wont be good news……
#1 Hamish42 on 11.30.18 at 5:14 pm
For once I disagree. Active life is short, a lakeside retreat is great if you enjoy the outdoors. Mine kept me sane as I migrated from full time senior job madness to a part time consulting role. Still have it even though I am a few thousand km away most of the time…..
_ __
For $650k that seems like a colossal waste of money. That amount would get them 60 years of world travel annually. Why tie yourself down to one place?
my 12 year old daughter has no knowledge about history, doesnt even understand why we study it. Yes, learn from the past, she still doesnt buy it, she didnt make those mistakes, she doesnt know any natives or care about louis reil.
her opinion about money is similar, why save, for what, forsake current fun for what, more future fun so when do you have fun if your always saving.
she has no interest in saving. none, perhaps her opinion will change over time, about history or money, but thinking about it, it has a lot of truth.
i see people 80 years old in the grocery store today, in the clearance section, did she save for this day? this is where she ended up, in the clearance section of the grocery store. i hope for her sake she had some great adventures and stories, but probably she has been poor all her life.
Garth writes the most informative and amusing blog I have ever read!
Freedom First
@Cici, #31
If I was 40 years younger and looking for a high remuneration sales job I’d look into medical devices.
Tech is making these things out of date almost as fast as they are installed. So repeat business as you sell the upgrade to previous clients.
You have vets, dental offices, medical clinics…all small business owned, no government pay issues…although you get in with a Health Region you are gold. But they take so long to pay…
And more and more dental and vet offices are signing up or selling to management services firms. So, find that person and sell to 5 or more clinics at the same time.
For some reason not known to me not much of this stuff is leased. We owned a vet clinic (wanted the land…ended up selling back to the staff vets) for a time and tried to find leases on some high end stuff…can do if you are government but not us.
#26 CEW9 on 11.30.18 at 7:18 pm
“You can balance your ETFs between passive & active funds as well, and reduce risk.”
I know your advice is well meant, but..
Owning actively-managed ETF’s does not reduce risk. It actually does just the opposite. See manager risk.
#40 crossbordershopper – bought a dozen large white eggs today in Ontario for $1.88, and am still adding up my savings.
#43 A Yank in on 11.30.18 at 8:42 pm
#26 CEW9 on 11.30.18 at 7:18 pm
“You can balance your ETFs between passive & active funds as well, and reduce risk.”
I know your advice is well meant, but..
Owning actively-managed ETF’s does not reduce risk. It actually does just the opposite. See manager risk.
Yeah, but sometimes active funds outperform passive funds and sometimes they don’t. I am not smart enough to predict when they will, but I can read a past risk history and base my holdings on that.
Also, a good portion of the “index” funds are in essence actively managed anyways, at least by an algorithm. It’s just buying and holding securities or bonds, etc, based on a set of rules. If something fits the rules, its in the index. If it doesn’t, its not. I hope that ‘good’ managers follow their own rules, and not their emotions. If their turnover is crazy high, usually I back away slowly. Reminds me too much of cowboys.
But in the end, someone always makes the rules. Even for ‘passive’ indexes.
#32 Dolce Vita on 11.30.18 at 7:38 pm
…had to search if there was indeed such a thing as penile splints (…oh, there it is: EREKTOR invented in 2014.
****************************************
Okay, I haven’t looked it up but now I’m going visual(ization). Does this include popsicle sticks and gauge bandages?
Duct tape. But the coloured kind. – Garth
#6 yorkville renter
Not clare. Lauren.
#12 SW
Yes sailing isn’t for everyone. It’s work but a great deal of fun. Especially if you race. I have an Olson 30 and love it.
Why is everyone trying to get these guys to buy a boat? Invest it all. Retire in less than 10 years and travel forever. Ownership is for suckers. Wealthy people live on invests and rent.
Okay boat, lovers, once you buy a sail boat (say 35 ft), how much total are you looking per year for mooring, dry dock in winter, insurance, repairs, disco balls…
Wonderful picture Garth. Thanks again.
Cottages are actually a lot of fun. There is something magical about how the water sprays off the sides of the boat as we head out to our favourite cliff jumping spot, or sitting by the campfire in the evening listening to the cracking logs and the sounds of the Muskoka night.
That, and of course, when you get 20 or so 30 somethings, and an equal amount of beer cases up for a long weekend, stuff happens up there that would not happen down in the City. It can become very, very good.
In other news, Donald Trump has temporarily banned all travel for citizens of Romania, until, according to Trump, he can “figure out what’s going on with their lettuce”.
Responding to the Alaskan earthquake, Trumpster noted that he would consider cancelling all aid to Alaska, like he did with the California wildfires, unless the Alaskans can “get those earthquakes under control, they have too many of them, what is going on up there?”.
Trump then flew to Buenos Aires, where he lamented that the Argentinian government has not yet built a border wall with Mexico. When it was pointed out to him that Argentina does not share a border with Mexico, Trump replied “they should build a wall anyway. What’s sharing got to do with it?”
40 crossbordershopper on 11.30.18 at 8:20 pm
—————————-
A 12 year old still has a good few decades to mature and learn about life. There is a balance to strike between saving for the future and living in today. It is your job to help her see that.
Recent sale report.
Well,I once ran this one as a Race to a million post and the reason I wanted to watch it’s progress was to see how close to a million it went for as it was a Vancouver Special.
The details…
531 Rupert st,Vancouver.
Originally asking 1.18
Just sold for 985k
Assessment 1.30
So it went lower than I thought it would.
Can you buy a Vancouver Special for less than a million bucks?
Yes,apparently you can.
25% less than assessed it went for.
I wrote in the original post it didn’t appear to have the best maintenance schedule but let’s be honest it’s the bottom of the market and it could have fetched something between 1.4/1.5 during Spring 2016.
The are relative deals to be had as the speculators have departed and the spectators have arrived…
M44BC
https://www.zolo.ca/vancouver-real-estate/531-rupert-street
I just finished a road trip to visit my daughter. She moved from Lethbridge to Edson as her husband became RCMP. Laws are no good without enforcement – no exceptions, double the penalty if you are a “public serpent”.
I don’t know my future but you count on me to resist entitled bozos. Someone wrote heroes die early and cowards live another day. I intend to be a hero for my grandkids. Piss on being anything less.
GM and GE are doomed thanks to dumb buyback money. They are not the only artificial entities run by bozos. Taxes are not just for little people – should be fun to see the truth the Don and Clintons are hiding.
I don’t like seeing people suffer and I cannot outlaw stupidity. I can’t think of a better teacher than failure. I am just average which means I can only lord over half and be under fire from the rest. No matter how hard I try, there is always someone better so I will be competing till the end. When the kids are finished whining and feeling sorry for themselves , I (parental unit overlord) will listen and do, slowly, in the spirit of Mackenzie King (one of the few central Canadians I respect). Dragging people down is not in my DNA.
As an Albertan, I tire of having another brick tossed on my back because I can take it. I will look at alternatives. T2, take your sacerdotal central Canadian nonsense and shove it up your ass. It would be a bad idea to leave me alone with in a room with Butz. The fix is in to reduce to reduce heavy oil production and may be a good idea. I say let the industry fix itself and quit making Albertans pay into Equalization. I am pissed T2 snuck no policy changes of this element into his budget.
Inflation seems to be on the rise for many goods and services, thus one must find the right spot to shelter his / her capital and hopefully increase it in value. My drycleaner, car mechanic, dentist, barber, and local grocery store are all increasing their prices. The cost of purchasing certain properties sees to be slightly lower, but your property taxes and insurance are still rising. What gives?
#36 I’m just going to point out that at 20 with 9k in cash, I’d be having a helluva good time. Most people I know came out of university with practically 0 saved at 23-24, and we’ve all done just fine
when I finished school at 22 I was at minus $46k (in 1999 dollars)…and I still managed some very good times
I’m with you- you gotta live a little at 20 – lots of time to save
Trudeau tells women to go work in the bush aka bug country because it’s nasty with men. In the same breath he says women make better decisions, what an arse. This Trudeau fop doesn’t see that women far out number men in post secondary institutions, they don’t want to work in “rural areas”. What a stupid thing for trudella to spew. Is Justin just a mannican?
Tell ya what, I’d rather work in an office surrounded by pretty girls than pave roads in N Sask where the deer flies are big enough to rape a horse. If Justine had ever worked in a camp he wouldn’t be telling your daughter to go there and in a stinking trailer . He’s a moron .
The advice I would give a Millennial when it comes to finance and investing is to read
If You Can: How Millennials Can Get Rich Slowly (https://www.etf.com/docs/IfYouCan.pdf)
This summarizes what I’ve read in dozens of books, and from speaking with several fee only financial planers. Simple, but not easy.
If I may be so bold Garth; someone that is just starting out may find more value in automated deductions into a single target date index mutual fund instead of various ETFs. This automates good behavior, and makes saving a forced habit.
ETFs are great when we have a few hundred thousand, along with the experience to not let anything stop us from investing.
#110 crowdedelevatorfartz on 11.30.18 at 7:58 am
@#98 Ponzi Pilates
“Who thinks they will live to 95.”
++++
Longevity is in my gene’s. 95 is a very distinct possibility. I’m hoping to ring the bell at 105. I’ll email you in 50 years and let you know how that works out
But you’re missing the point.
People that “Live” have less stress ( ie enough money, savings, time to relax and enjoy a bit of retirement).
As opposed to people that “survive”, no money, stressed, scrabbling for every grocery store coupon…… If thats how you want to spend your “retirement”….fill your boots.
Everyone knows their birthday not their death day.
Enjoy working at WalMart at 70 ……
I hear they give employees discounts on Depends and denture glue.
————
Fartsie.
How old are you?
I’m 68.
Have about 50 k in RRSP’s.
House paid off.
Get 15k from Government Pension.
Did most of my world travel when I was younger.
Glad I did.
Never listened to a financial advisor telling me bullshit about livin to 95.
Happy as a clam.
Lol!! Garth! That last paragraph made me spit beer out onto myself LOL! I just love your responses!
300-400K combined income… in sales?
Can we get some more info on this?
At the new nafta deal signing at G20. T2 showing off to his masters at the UN and does not hold up the thing they signed.
Then he expects the most powerful man on earth to lift steel and aluminum tarafs . Can’t wait for dictionary.com to have no words to describe the definition of idiot. Just a pic of T2.
i don’t understand the mentality of taking on debt to buy a rec property . We have a truck camper sitting ten feet from our house that we barely use . I can’t imagine having a “cottage” hours away even remotely being used enough to justify owning it .
—————-
I have purchased a 10 year oldpark Model home ( 2 bedrooms) for $48,000 overlooking rice lake at a trailer park.
[email protected] $5,000 per year which includes everything. Most likely property taxes for a cottage are the same. Except all maintenance ,pool , beach, activities are all taken care of. Don’t think of trailer trash as people in this park range from CEO, vet, nurses , physician, pharmacists etc.
Just nice, lovely people.
I love it. I am there every weekend. I also own a house in Mississauga with a ravine that backs onto LittleEtobicoke Creek. House is work. My cottage trailer is no work. Pure enjoyment, my little piece of heaven. Worth every penny.
Thought about a cottage, could afford it but did not want to outlay that kind of money. Investing the difference in markets is more sensible. I have everything I want and need.
#42 Ustabe
Thanks for the insights, I’ve never thought about all that. You are absolutely brilliant!
#49 Lead Paint – The costs will not be material because he stated will invest about $700,000 into a cottage property, and if its in Muskoka the property taxes, travel time, and traffic will be painful. A small investment in a sailing yacht by the Toronto area for about $50,000, more or less, becomes his cottage investment on the Great Lakes. Investing the balance of the cash wisely then will generate a profit, and lots of liquidity if needed, In this way he has the best of both worlds.
#146 Hamsterwheelie on 11.30.18 at 5:00 pm
#139 James – thank you for that well-crafted diatribe re ‘Smoking man’. Nicely done!
….
Your backing the wrong dog.
I put out a help me give my worthless shit in my storage unit to the down and out a few days ago. I had about 100 emails from poodles, smartest bread in the world wanting to help, rent trucks and give up free muscle .
Rotwilers like James, well they just want to bite me. Not all rotwilers are bad.
Might have a get together on Monday before I go home to wax my long board.
No one likes James.
I know how to troll him for his long winded essays which I enjoy reading. I never respond to his hate.
I let him ramble. Free speech is wonderfull and I’m not afraid of it.
You’re backing a sucker to my trolls. He falls for it everytime. His IQ I won’t go there. His words speak for themselves.
Love you James..
Our cabin is nothing special but we own it. It has been one of the best things for our family. My in-laws used to take our kids out every weekend that we couldn’t go and now we enjoy the cabin with our kids and grand kids. Most of our friends rarely see their kids but the cabin brings ours out every weekend or two. It can be a money pit if you let things go but if your handy (and you need to be) you can keep the costs down. It is a luxury that we were fortunate to inherit otherwise I probably wouldn’t own it.
Lead Paint on 11.30.18 at 9:49 pm
Okay boat, lovers, once you buy a sail boat (say 35 ft), how much total are you looking per year for mooring, dry dock in winter, insurance, repairs, disco balls…
=========================
For a 35′ C&C sailboat on the east side of Vancouver island my annual costs are about $5000 a year.
All in: moorage, insurance, depreciation and a small upgrade in the budget amount. (you can spend a lot more on upgrades if you “need” the best chart plotter or new sail every other year)
What are honest annual cabin costs?
Too late to post?
0.5% GDP growth in 3rd Qtr 2018…nice.
Then you read virtually EVERY sector highlight with words in its title such as:
slows
declines
falls
slower
with the 1 and ONLY positive title being:
“Strength in mining and petroleum refineries”
Well, we now know in December that the last 1/2 of that title equation is not going well.
I wonder how Statistics Canada manages those doom and gloom sector title words when GDP up so well (a less than extensive Thesaurus at StatCan)?
Depressing a bit and I scratched my head at the dichotomy.
I suppose we’ll find out early Feb. 2019 if the doom and gloom words persist and how bad indeed oil went.
https://www150.statcan.gc.ca/n1/daily-quotidien/181130/dq181130a-eng.htm?HPA=1
#45 CEW9
“Yeah, but sometimes active funds outperform passive funds..”
Sometimes.. but usually not, especially after taxes.
Good advice for both Mills, especially the cottage. The vacation residence always sounds so nice & I am sure that it would be utilized during the ‘honeymoon’ period. But unless one is totally in love with the location & is sure that they will in perpetuity want to spend each & every vacation there, renting is the way to go. You get the location but not the hassle of maintaining a property that you may not actually use. Even better, you can vary where you vacation.
indexes.
#46 LP on 11.30.18 at 9:24 pm
#32 Dolce Vita on 11.30.18 at 7:38 pm
…had to search if there was indeed such a thing as penile splints (…oh, there it is: EREKTOR invented in 2014.
****************************************
Okay, I haven’t looked it up but now I’m going visual(ization). Does this include popsicle sticks and gauge bandages?
Duct tape. But the coloured kind. – Garth
—————————————————
Seriously.
I am still stuck on what a ” Plastic Moose ” is !
Hope this isn’t costing me $9.95 a minute ( again )
Great sense of humour Mr Turner
Sail boats are so yesterday. Everyone is going tug boats. Try fitting your plastic moose on a sail boat…..you can’t.
DELETED
‘Unimpressive with a capital U’: Slower growth a troubling sign for the Canadian economy
https://ca.yahoo.com/finance/news/unimpressive-capital-u-slower-growth-troubling-sign-canadian-economy-193251479.html
It seems all that deficit is not helping and the economy is not fixing itself.
I don’t think Nat is old enough to be a millennial
So our gamblin’ MP who recently almost resigned and whose million dollar gambling transactions are being looked into by the RCMP, has decided he’s not resigning after all.
Oh well.
In T2’s government, anything goes…..except if 20 years ago you looked at a lady wrong or had a bad break up….then you’re out….no exceptions.
Mr IH: I do admit I was over the top mouthy yesterday morning on your case, once again. I am glad that you are equipped to handle my weak social skills better than I.
I have gasification technology right in my home. We bought an EPA Flame wood stove at the hardware store. Across the ceiling of the firebox are manifolds with orifices not unlike what is under a propane BBQ. These allow air to mix with the released, otherwise wasted wood gas. You can watch the blue flames gushing right there looking through the glass door from the floor looking upwards, if and when the wood is burning just right.
Wood consumption is down enough to notice, but to measure maybe 12.5%. (1/8 by volume.)
I have an entrepreneurial friend with unlimited funds for non fiction, a voracious reading appetite, more eccentricities than you and I together, and believe me now, he has researched gasification hard, for forty years.
His synopsis is that it will be viable when oil is $250/barrel, and the gas station down the street becomes unreliable. Too much labour input.
I have seen the videos on U-Tube where they power a small gasoline engine to run a little gen-set, with wood gas straight from the chimney.
Last point, I have converted my carburetted guzzlers to EFI, the first one with TPI twenty years ago. 14.5mpg for the van in the hammer lane all day, with AOD too. Previously 8mpg.
I have to get off of this site. It is all about boats and money, which I don’t seem to covet.
Garth certainly is an excellent host. And educator.
The electronics are important when buying a modest sailboat. I recommend watching Great Lakes sailing on you tube, as sailing is not that difficult. It is imperative to have an auto pilot, because your yacht will sail for you with a destination programed. This gives you time to kick back, and do some fishing for your dinner or play with your drone.
Smoking Man you deplorable OHIP-using fake, don’t forget what I said when you get back to SoCal. Eat lots of salted romaine lettuce old man – yummy!
@#59 Ponzi Pilot
“I’m 68.
Have about 50 k in RRSP’s.
House paid off.
Get 15k from Government Pension.”
+++++
57
So how is the employee discount diner at Wal mart?
speaking of poop
https://www.cbc.ca/news/health/romaine-lettuce-e-coli-vaccine-cattle-health-canada-1.4928168
#81 crowdedelevatorfartz on 12.01.18 at 9:58 am
@#59 Ponzi Pilot
“I’m 68.
Have about 50 k in RRSP’s.
House paid off.
Get 15k from Government Pension.”
+++++
57
So how is the employee discount diner at Wal mart?
—————–
Never go to Walmart.
That monstrosity should be outlawed.
Rather go for walk on the beach.
Or take a “forest bath” as the Japanese call it.
Life is simple. Don’t overcomplicate it.
And, ditch your car.
from the other day:
AGuyInVancouver on 11.30.18 at 1:18 pm
“misconduct” as a business strategy
“Even in the most egregious cases, banks are often only required to pay a monetary penalty for engaging in criminal activity, which is merely the cost of doing business,”
https://www.cnn.com/2018/11/29/business/deutsche-bank-police-raid/index.html
..”the German bank is suspected of helping clients to set up offshore companies in tax havens, prosecutors said in a statement. Investigators are also looking at whether Deutsche Bank failed to report suspicious transactions.
Both the lender and prosecutors said the probe is related to the Panama Papers, a 2016 investigation into money laundering networks and shell companies set up by Panama-based law firm Mossack Fonseca.
Good blog post today. Made me chuckle.
I love boats! I am landlocked, and am envious of the Great Lake/Ocean opportunities the majority of you get to enjoy.
As always, folk forget the general theme from GT…balance. If you can afford toys while saving and getting ahead it’s all good.
Rec property: My wife and I forayed into a place two years ago. We love it. But it is the biggest money sink you can buy. We didn’t buy it as an investment, and it would be cheaper to rent a place etc. But it commits us to head out and do some stuff as a family. But it is a tremendous investment risk…I basically do not include it in our “Net Worth” calcs.
How many men have started their shame-faced, long overdue marriage proposal with the words, “so… I was talking to Garth Turner and…”
Thanks for the advice Garth!
I have finished interrogating the different banks and have chosen a final contender as my main bank (RBC).
I’m in the process of moving all of my direct deposits over to the new account.
I’ll keep doing my homework, but I am probably going to go with a managed portfolio full of ETFs. (I am not confident that I can manage it efficiently myself)
Although, I’m unsure whether or not to go with a growth portfolio (30% fixed income, 25% CAD/US equity, 20% international equity) or an aggressive growth portfolio (35% CAD/US equity, 30% international).
Either way, I will be squirrelling everything I don’t use, aside from my emergency cash, monthly into my TFSA.
Thanks again,
-Nat From Windsor
“Get a plastic moose for the backyard. And marry her.”
What happened? Did marrying women go out of style or something?
#85 Joe Schmoe
I love boats! I am landlocked, and am envious of the Great Lake/Ocean opportunities the majority of you get to enjoy.
——————————
I hate boats. But I love the sea. I live right beside one. I like to gaze at the waves from the shoreline.
I’m also a sun worshipper. I like to do that from under the shade of a big oak tree, preferably at the seaside.
conan on 12.01.18 at 4:49 am
Sail boats are so yesterday. Everyone is going tug boats. Try fitting your plastic moose on a sail boat…..you can’t.
================================
Good point Con,
The skipper should not try to get any moose aboard. Not enough room and it will piss off the foredeck cow.
http://www.wbryant.com/cow/index.htm
(and scroll to bottom too)
To ‘Renter’s Revenge’ – about the post a couple of days ago, you asked who I thought would pay me (or anyone else) to take care of my own children. In point of fact, there are government programs in place to pay people for having children & raising them. This was done as I recall to encourage people to have more children (vide the $5 per day Quebec child care program). Anyway, I went to the handy Government of Canada webpage & used the handy calculator provided to calculate the benefit I’d receive if I had a child. I used the example of a single female with one child, whose working income was $43,000 per annum with a net income of $35,000 per annum (2017 tax year). As per the handy calculator, that example parent would receive $9,303.80 per year in varied tax claims & benefits, the vast majority being made up of the Canada child tax benefit & the additional provincial tax benefit ($7,353 for the two combined). Plus there were GST benefits & income tax credits & even an environmental tax rebate, though I’m at a loss as to what that has to do with having a child.
So to answer your request for education, yes indeed people are being paid to have children & raise them & yes, payment is from taxpayer dollars. I may go back to that calculator & see what numbers might pop up if my sample parent has no income. Could be educational……
86 Emily – why is it up to the men to propose?
Are you suggesting that he marry the Moose?
Advice for the 20yo….
Stop thinking about investments, get out and enjoy life. For example that 9k could sustain travel around Asia for months, maybe even a year if you are smart.
You are only in your twenties once, old enough to be independent, young enough to not have responsibilities. Your twenties are for experiencing life, having a good time and trying new things. Finish your studies (or put them on hold), travel a bit, see the world before your life is dragged down with weightier concerns.
You’ll have lots of time later to make investments and build a nest egg. Right now don’t be wasting your precious time listening to advisers in banks or Garth at 20 years of age!
@#81 crowdedelevatorfartz on 12.01.18 at 9:58 am
@#59 Ponzi Pilot
“I’m 68.
Have about 50 k in RRSP’s.
House paid off.
Get 15k from Government Pension.”
+++++
57
So how is the employee discount diner at Wal mart?
___________________________
yur way to young to be this crusty lol.
can any of the boaters on here give me an idea of the average cost of a membership/mooring at one of the toronto yaht clubs? thx
Spend it Yesterday, Today or only Tomorrow?
#40 crossbordershopper on 11.30.18 at 8:20 pm said:
my 12 year old daughter…
her opinion about money is similar, why save, for what, forsake current fun for what, more future fun so when do you have fun if your always saving.
****************************************
Alice feels the same way. But it was against the rules.
“The rule is, jam to-morrow and jam yesterday—but never jam to-day.”
“It must come sometimes to ‘jam to-day,’” Alice objected.
“No, it ca’n’t,” said the Queen. “It’s jam every other day: to-day isn’t any other day, you know”
A nice cabin somewhere in BC is my end game. Fish, bike, hunt and hang out in the mountains by some nice mountain streams. Sounds good to me.
#10 diharv on 11.30.18 at 6:09 pm
i don’t understand the mentality of taking on debt to buy a rec property . We have a truck camper sitting ten feet from our house that we barely use . I can’t imagine having a “cottage” hours away even remotely being used enough to justify owning it .
—————————————————————-
Living here but not being from here, its largely a Toronto/GTA thing, the family cottage – Patrick forgot to mention the 2-4 hour drive on Fridays and Sundays and Airbnb seems to work only if you are already living nearby, not said 4 hours away. Oh and any cottager I know obsesses about the septic, that’s what I want more grass to cut, roofs etc to maintain and privies to flush… Take that money and have amazing travel for like ever…
@#83 Ponzie
“Life is simple. Don’t overcomplicate it.
And, ditch your car….”
“””””
I’m a redneck. I drive a truck.
Whats the Seniors discount on Bus passes these days?
Where are the weekend lads.Brewing is a big ballsy beta rally for bulls. Industrials like CAT.US, MMM.US basing well.
Forget wind powered. You need a cigarette boat (christen it The Smoking Man Too).
There’s no replacement for displacement (454). This thing will pass anything but a gas pump. Under 10k:
https://www.kijiji.ca/v-powerboat-motorboat/city-of-toronto/24-baja-boat/1389715215?
Lakefront cottages are great if you’re mobile… Me and the wife spend nearly every week during the summer months at ours… It’s quiet and tranquil during the week. We come back to the city for the weekends. It’s the opposite of what most people do, but it works for us since we operate our businesses by phone and internet.
As for renting it out? Never!
#96 KLNR – pick out your yacht club website, and see the fees. There is an old saying that if you have to ask you cannot afford it all.
To Emily wherever I may find her: The smart ones don’t propose.
They wait until they are in their mid-fifties and get a 47 year old. They let someone else do the heavy lifting.
If you chase them with money you end up with neither, if you chase money you get both.
@#103 Fee Yacht Plans on 12.01.18 at 2:11 pm
#96 KLNR – pick out your yacht club website, and see the fees. There is an old saying that if you have to ask you cannot afford it all.
__________________________
thanks for being an Ahole.
Which one are you at? I’ll be sure not to go there lol