Unintended consequences

Later this week we can talk about stock markets, expectations for B&D portfolios in 2019, Mitt Romney, Oprah and Angelina Jolie plus, of course, BC real estate. In fact, here are the only 38 words you need to know about the latter: moronic taxes, combined with the stress test, have made houses nobody could afford cheaper while making cheap houses unaffordable. Lose-lose. The market’s in the midst of a political meltdown. So, how do you like socialism so far?

But before all that excitement, let’s go back and mop up some preconceptions being splashed around. Yesterday the topic was commuting pensions – yes or no? This blog gave you a handful of reasons why it’s almost always a good idea (if you get the chance) while the steerage section sounded its usual note of terrified, hostile insecurity.

Yesterday we also touched on the other topic of universal confusion – whether retiring little beavers should take CPP when first offered (age 60) or hang in for a bigger stipend at 65. Or even (gasp) 70. As expected, this filled my email Wednesday morning. Typical was this note from Wendy. “I read your blog today telling me yet again to take my CPP early, and then I browsed the Globe & Mail and saw the exact opposite,” she writes. “I’m keen to hear your rebuttal to her.”

But there was also a compelling suck-up.

Also, I just can’t thank you enough for your wise words. You have provided such good advice in your blog that I feel like I am actually going to financially survive my divorce despite being 50, staying home for over a decade with my kids, and taking a lower paying, less secure, but completely flexible job to permit me the time to help these kids navigate this next year (they’re only 14 and 11). I have left the matrimonial home and downsized, am in the process of telling [email protected] to screw off, discovered ETFs, faithfully invest a good chunk every month, and am working towards maxing out my TFSA. I might have to work until I’m 70, but if my kids end up ok, that’s ok. The downsizing was key to all of this and you consistently remind me that I don’t have to apologize for living within my means. All this, and I kept the dog!

Yay, Wendy! Atta girl. No reason whatsoever you can’t kick ass when it comes to financial empowerment. Far too many people (and too many of them are women, sad to say) get ensnared by the banks and end up in high-fee mutuals or dead-end cash products. Because females outlive men by a scary margin and traditionally earn less, they need growth. Remember what the biggest risk is. (And it’s not losing money.)

So what about this public pension debate?

The latest never-take-it-early argument published this week comes from Bonnie Jeanne MacDonald of Ryerson University. Not only does she dump on collecting the pogey at age 60, but ‘proves’ delaying to 70 is wildly more beneficial. She writes:

“In delaying CPP by five years (from 65 to 70), you are “purchasing” an additional 50 per cent of the CPP benefits at the “cost” of five years of forfeited CPP payments. It would currently cost a 70-year-old man 64 per cent more in the private market to purchase an annuity equal to that provided by CPP. For a woman, the cost is 84-per-cent higher…. With a CPP maximum of $13,600 a year, choosing to delay CPP benefits could mean getting up to $6,800 more in secure income each year, which increases with inflation. This reliable extra income can be essential to cover supplemental care, above and beyond the limited government benefits available.”

Those are compelling numbers, and mathematically correct. But they also misrepresent life.

Here’s why.

Most of us don’t stand a chance in hell of collecting $13,600 a year in CPP. The average is $670 a month, and this is skewed much more to men than women (who apparently still rear children). Therefore waiting until you’re 70 to collect less than $300 a month more means giving up $40,000 in CPP payments over five years (from age 65) or almost twice that if you wait ten years. Seriously? How does that justify not having the use of forty or eighty thousand bucks for years and years just to collect $75 more a week a decade before you expire? Huh?

Face it: the feds have devised a plan encouraging people to wait to take CPP because they believe you will collect less if you do. Nobody knows when they’ll die. Delaying this benefit until the beginning of your eighth decade is simply gambling – thus it’s weird that so many risk-averse Venuses think that way.

Meanwhile every Canadian needs to realize the public pension plan was never meant as a retirement allowance, but merely a supplement to savings, RRSPs or a work pension. It’s booze & weed money, not rent money. Stressing over seventy-five bucks a week extra is pathetic. If you need to do this it means you failed financially over the six decades you were given to prepare.

That sounds harsh. On purpose. Take the time spent uselessly debating this point and use it to budget instead, so your TFSA will be sweet and hot this year. In fact at age 60 stick your hand out, take the CPP and put it into your tax-free account in growthy ETFs. In a decade it can provide you a tax-free stream of income that will not reduce OAS. (Also not worth worrying about.)

So, Wendy, it all comes down to two irrefutable points. First, continue to do what you’re doing – invest aggressively, curb your real estate exposure and focus on building assets that’ll pay you to own them. Second, take the CPP when offered early and enjoy it. Life is short. Time is precious. Use the money when you can derive the greatest pleasure from doing so, not during the Depends years when a spin on the walker is a big deal.

The person who waits to the last grisly, drooling moment to collect the most pension does not win.

Now, on to Angelina!

144 comments ↓

#1 Jimmy on 01.02.19 at 4:52 pm

First for 2019

#2 Way to go ... on 01.02.19 at 5:00 pm

JIMMY

#3 acdel on 01.02.19 at 5:01 pm

Great post Garth, thanks.

#4 Dave on 01.02.19 at 5:06 pm

Sure would love to see an interest rate hike soon, that’s all we need to keep killing the real estate market.

#5 Brian Ripley on 01.02.19 at 5:12 pm

The Canadian 10yr-2yr spread on the December data has narrowed now to just 7 beeps away from inversion:
http://www.chpc.biz/yield-curve.html

Apart from allocating capital, it’s a good idea to stress test your balance sheet, if there is any chance that your day to day income is at risk.

#6 Drew on 01.02.19 at 5:12 pm

Is the $6000 limit on 2019 TFSA official? I see articles saying that it should be, but nothing definitive.

#7 @careeraftschool on 01.02.19 at 5:13 pm

I agree with Garth! Start collecting the CPP as early as possible. My parents and most of their friends had some serious health issues between the age of 60 and 70. Some of them beat cancer but their health was never the same. Most of these people are waiting to the age of 70 to collect CPP while struggling to pay for medications and other medical services. Stressing about money just leads to more health problems. Ugly cycle.

#8 SoggyShorts on 01.02.19 at 5:19 pm

#25 Keith in Rio on 01.01.19 at 6:06 pm
For example, I put $300K into acquiring a property and the equivalent rent/mortgage for same is $1,800 a month after tax……that is roughly a 7% yield on my money.
**********************
Sounds pretty good. What’s the return for the year that you redo the roof? Or the driveway? or the deck? Windows? Fence? Plumbing?

#9 Bruce on 01.02.19 at 5:19 pm

That lady s dog is broken

#10 SoggyShorts on 01.02.19 at 5:21 pm

#100 Young Boomer on 12.31.18 at 11:47 pm
If you want things in Canada to change you have to vote for change. I’m voting for Max.
******************
Ummm I thought it was pretty clear that a vote for Max is actually a vote for Justin.
Going from Justin to more Justin is not change.

You are playing yourself

#11 MBA101 on 01.02.19 at 5:28 pm

The cobra effect would have been a smrter title. It has an interesting backstory.

#12 Davis on 01.02.19 at 5:28 pm

What a hot piece, Garth-man. BB you keep this up and 2019 is going to be a sizzler!

#13 Bob Dog on 01.02.19 at 5:28 pm

Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.

Housing in Canada is expensive simply because not enough homes are being built to meet demand.

Keep in mind that just over 2000 people have moved to Canada so far this year. Im damn sure there were not that many bedrooms completed since New Years eve. Im scratching my head trying to understand how such an incompetent government can process applicants that fast.

Canada is the trial run for globalization. The central planners are trying to see how far a population can be pushed before the riots begin. As an example witness the gentrification of Vancouver.

#14 yvr_lurker on 01.02.19 at 5:29 pm

First of all, the BC NDP had nothing to do with the mortgage stress test making it more difficult for millenials to qualify for mortgages. Prices in the condo market were in full overdrive in the last two years of Christy’s reign, especially when she put in the crazy 25K loan scheme. Totally bogus for you to claim that the NDP goosed the lower end of the market. In YVR Prices of SFH are coming down (still unaffordable to most), townhouses and duplex as well (mine down 7% from BC assessment), and in the past 6 months the condo market is following suit. Give it another few years and the broad-based market at all levels will be more affordable. No need for the severe stress test at this stage since rates are not going up fast.

#15 not 1st on 01.02.19 at 5:32 pm

Garth, you don’t even need to ask if people like socialism. They love it including some questionable types on this blog. They love all the govt interventions and all the debt run up for their entitlements. They don’t care if Canada has a state run economy and $100T in debts, so long as they get theirs. Socialism used to be about fighting for dental plans and the like. Now its take care of me and everyone else all the way to the grave.

As for Romney, he has a lot of nerve commenting about Trump. He belongs to the racist Mormon organization that believes they are the select group above all others and the only people going to heaven. What about the polygamy and brainwashing that goes on as well. I mean these guys got nothin on scientology.

#16 yorkville renter on 01.02.19 at 5:33 pm

booze & weed money

$75 a week in govmint-paid vice?

Greatest country ever!

#17 Trading Naked on 01.02.19 at 5:40 pm

Take the money at age 60. You can’t guarantee you’ll make it to 65. Or even 70. Hell, we just lost Beard Guy of Walk Off The Earth, in his mid 40’s, and he seemed really healthy. (You may have a beard, Garth, but you are no Beard Guy.)

The mother of a friend of mine passed away mere days after her retirement from a lifelong career in public health. I don’t think she was even 65. The paper pushers felt so bad for her and her family that they actually fudged her retirement date so that her survivors would qualify for certain benefits. So really, the older you are, the more you can’t predict the future.

#18 yvrguy on 01.02.19 at 5:45 pm

sydney > vancouver, weather 10 times better and yet…

https://www.bloomberg.com/news/articles/2019-01-01/sydney-housing-slump-to-deepen-as-prices-drop-most-since-1980s

I thought foreign money was endless?

#19 Jacky Wong on 01.02.19 at 5:55 pm

The $C in Asia is taking a pounding. Nobody is investing in the Turdum economy so need buying of $C and it’s tanking. The C-Peso has fallen 10% against giants like the Thai Baht since Xmas. The Renmimbi is pegged to the USD and a 40% premium is there for the asking if any Chinese want a fat discount on Vancouver real estate. Have you bought Euros or U.K. pounds recently, bet you haven’t because the U.K. Pound costs $1.80!! Canadians are being screwed and impoverished. The First Class cabin from Vanc to Taiwan was empty aside from my wife and I. Upside was, no kvetching Canadians bleeding out over the increasing Trudummy taxes coming in 2019. And , we had six stewardesses fawning over us all the way over the pond. One did nothing but change my movie channels and fluff my pillow between feedings and another stood by and opened the bathroom door when I’d drank too much champagne. Obviously Canadians are getting poorer and rich Asians aren’t visiting for investment, tourism or otherwise. First Class is where the rubber hits the road as gas as buisness investment goes. I heard a CTV ‘ Power Panel’ of anointed “journalists crow about how Trudeau is doing great things. I think it’s American money backing this propaganda, because my view from 35000 ft is that Canada is sinking like the Titanic and the rich have already abandoned the Liberals.

#20 Shawn Allen on 01.02.19 at 6:00 pm

Should you take CPP early or not?

The answer of course is whatever you wish the answer to be. You will find plenty of math and arguments to support taking it at 60, 65 or even 70.

It’s an individual choice based on individual circumstances. Get advice from a few different sources if you can. Then do what feels right for you.

And mind your business about what others do, unless asked.

#21 SmarterSquirrel on 01.02.19 at 6:12 pm

Garth is right. The CPP is not a pension plan in the way most people think, it’s supplemental cash to whatever pension plan you’ve hopefully built for yourself.

Many Canadians aren’t doing enough to make sure they have a financially comfortable retirement. Based on some Globe and Mail articles, of all Canadians aged 55 to 64 who won’t have a full pension, half of them only have enough saved to last one year! Only 1 in 20 Canadians say they have more than enough saved to retire comfortably, that means there’s 19 of 20 Canadians with just enough or not enough saved to retire comfortably!

People need to start taking retirement saving seriously and planning early if they won’t to avoid stress and poverty in their latter years. Living below your means and saving and investing often is key. You’re going to need to put away a lot more than you think, especially if you keep putting off saving for retirement. I’ve got a spreadsheet to help you figure out how much you’ll need to put away. https://smartersquirrel.com/how-much-do-you-need-to-retire The amount you’ll need may surprise you.

#22 dakkie on 01.02.19 at 6:15 pm

Housing Bust in Sydney & Melbourne Gains Momentum

https://www.investmentwatchblog.com/housing-bust-in-sydney-melbourne-gains-momentum/

#23 WDL on 01.02.19 at 6:16 pm

I agree with taking CPP early. My wife is 4.5 yrs older than I. Our plan is she will take CPP at 65, I will take it at 60 or 61 about the time I am to retire with a $2200 per month pension. In addition to that we have our house paid for and about $600,000 saved at the moment and a business I can sell. Retirement in 4 years! We should be fine.

#24 SunShowers on 01.02.19 at 6:16 pm

DELETED (Language)

#25 Vanreal on 01.02.19 at 6:18 pm

Garth, who cares if you die before you collect your cpp. You’re dead so you sure as heck don’t. But you will care if you run out of money before you die. Cpp is a guaranteed annuity. Your rrsp or stock portfolio is not.

#26 acdel on 01.02.19 at 6:22 pm

#17 Trading Naked

You bet, I am in my fifties and can’t tell you on how many people (especially men) that I have known or others have known that did not even make it to 60. It is sad! Governments and other institutions know this!

#27 Debtslavecreator on 01.02.19 at 6:27 pm

Garth is right – take the CPP ASAP
In addition to his reasons the other big one is waiting an extra 10 years will mean your loonies have dived even faster in buying power
We have an extremely indebted society that’s aging and likely in an ugly era of financial issues and unpredictable government actions that will shock most
If you are still allowed to take it at 60 in a few years do so
If you are very wise you use it to pay off a fixed rate mortgage on a high quality cash flow positive multi unit property or commercial property , or help finance a good business idea that makes money
Making the TFSA is a great idea too if you trust that a broke and corrupt government won’t steal your TFSA as part of an emergency weekend parliamentary session during what will be a stunning decline in govt financed
Study your financial crisis history and talk to the many in Canada who’ve lived through major financial crisises in Argentina, Russia, Latin America , Europe etc
I know which way I’m leaning
Broke govts don’t give you anything tax free forever

#28 Damifino on 01.02.19 at 6:30 pm

I took mine 8 years ago at the age of 60. At that time the penalty for taking it 5 years early was 30%. (I believe that’s now risen to 36%). Regardless, I never looked back.

As of today, I get $645/mo in CPP. For me, this is pin money. If I didn’t have it, I’d have to draw ‘pin’ money from a larger pool resources I spent a lifetime building.

I admit, CPP is handy to have but I’m in no way dependent upon it. That’s how it should be. It’s a supplement… a pot sweetener, nothing more.

CPP is a minor player in an overall retirement plan that should begin in one’s prime. Failure to do so leaves people nitpicking late in the day about how to make to most of table scraps from the feds.

They’ve already given you what you need. It’s called a TFSA. The headroom just went up yesterday.

Get on with it.

#29 Al on 01.02.19 at 6:53 pm

WDL – your the problem in the comment section. Do you really feel obligated to tell us how well off you are?

I hope your yearly donations are maxed out and you spend some time volunteering throughout the year.

That would be something impressive.

Hopefully I don’t miss your comment tomorrow on “how shiny your new iPhone is”

That goes for everyone else too.
Thank you

#30 Barrie from Barrie on 01.02.19 at 6:58 pm

Here’s another slightly complicating factor to consider.
Some DB plans offer what’s referred to as a ‘bridge benefit’. For those retiring early before 65 or 60 (depending on the plan category) your pension may give you an extra stipend that basically covers a good chunk of what CPP/OAS would be, until you are 65. Most don’t care if you are actually collecting CPP early, either. So another decision to think about for those on DB pensions.

#31 Michael King on 01.02.19 at 7:01 pm

Delaying CPP payments certainly is a gamble. Lost two male, healthy and athletic friends in 2018. One was 60 and the other was 69. I’m 65 and followed Garth’s advice to take CPP at 60. Folks, he’s 100% correct.
Our BC Property Assessment arrived today. Our condo is a 1 BR, 650 sq ft, in a rare concrete building in the Kitsilano neighbourhood of Vancouver. Now at $555,200, up 11% over 2018. Our 2016 assessment was $366,700! Purchased for $149,900 in Dec. 1996. SFH home prices are getting hammered here but not condos. Again, Garth is on it.

#32 IHCTD9 on 01.02.19 at 7:02 pm

#13 Bob Dog on 01.02.19 at 5:28 pm
Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.
————

I own my own water service. I own my own sewage service. I have to pay per bag for garbage services. Same patched pavement out front as there was 30 years ago.

My taxes keep going up…

#33 X on 01.02.19 at 7:05 pm

Face it: the feds have devised a plan encouraging people to wait to take CPP because they believe you will collect less if you do.

No doubts they have hired someone far smarter than us to calculate all of this and have the odds in their favour.

Anytime someone offers me money, especially the gov’t, I will take it.

Having said that, did the RESP transfer today.

#34 kommykim on 01.02.19 at 7:07 pm

RE:#6 Drew on 01.02.19 at 5:12 pm
Is the $6000 limit on 2019 TFSA official?

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

Looks like a YES. Scroll down for the straight goods from the Government:

https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html

#35 Centre-Right? on 01.02.19 at 7:08 pm

Watching Scheer try to flip flop his positions to look electable is laughable.

~27% undecided could all go to Max if he plays his cards right.

#36 El Chapo on 01.02.19 at 7:12 pm

Hey wacky jong amigo. Business is good in Canada.

The RCMP is top heavy. Just the way I like it amigo. And I like my burritos hot guey.

El Chapo’s “deep infiltration of Canada”

Hogan writes: “We were caught off guard by his [El Chapo’s] deep infiltration of Canada.”

Mexican cartel helped by Iranians in Vancouver to traffic drugs

He describes how Iranians in Vancouver are in bed with the Sinaloa cartel and El Chapo, and work on the importation of drugs into Canada for the cartel.

He describes how Canadian Iranians working for the cartel buy airplanes and smart phones for the cartel. Once the drugs are in Vancouver, it appears that the Iranians pass the drugs to the Hells Angels who are in charge of moving the drugs across Canada.

The HAs hot zones are Lower Mainland, Victoria, Nanaimo, Chilliwack and Kelowna.

Hey what a coincidence. The same areas where the spec tax landed.

#37 Dolce Vita on 01.02.19 at 7:16 pm

He said. She said.

If we only knew when we’re going to die then it would be easy…oh, wait a second (bad pun):

http://deathclock.com/

there you go. No more guess work or What Ifs.

Or Garth admonitions.

Buonanotte.

#38 Tbone on 01.02.19 at 7:17 pm

I took ccp early . Didn’t need it but why not .
I think I start to lose money at 74 years of age .
I just blow it frivously on trips .

#39 Rural Rick on 01.02.19 at 7:20 pm

If you take the CPP at seventy or later as it is taxable income you may not be eligible for GIS, if god forbid you need it.

#40 MF on 01.02.19 at 7:21 pm

#32 IHCTD9 on 01.02.19

I think the other poster’s point was that taxes pay for shared services that better the lives of all of us as a whole.

MF

#41 For those about to flop... on 01.02.19 at 7:24 pm

Pink Snow falling in Vancouver.

These guys just put this house back on for the exact same number as before because they are already gonna take a pink bath.

The details…

2287 37TH AVE W VANCOUVER.

Paid 5.48 April 2017.

Asking 4.98

Assessment 4.34

Dunno what these guys wished for with a new year underway.

Regardless, they are gonna get a blue glove to the backside…

M44BC

https://www.zolo.ca/vancouver-real-estate/2287-west-37th-avenue

#42 IHCTD9 on 01.02.19 at 7:25 pm

#29 Al on 01.02.19 at 6:53 pm
WDL – your the problem in the comment section. Do you really feel obligated to tell us how well off you are?

I hope your yearly donations are maxed out and you spend some time volunteering throughout the year.

That would be something impressive.

Hopefully I don’t miss your comment tomorrow on “how shiny your new iPhone is”

That goes for everyone else too.
Thank you
———

It’s no biggie. I like hearing about success. WDL obviously cared about his future enough to take action and secure it. I’m doing the same, so should you. He didn’t pay off his house while simultaneously squirrelling away over half a million bones by sitting on his @ss, more power to him and wife.

I hope some day I can “brag” about a pile too! When I read about a regular working stiff who managed to get ahead financially, it reinforces that my personal efforts at achieving the same are not a pie in the sky waste of time.

#43 Cici on 01.02.19 at 7:26 pm

Good on Wendy! Love her smart, winning attitude, and her dedication to putting her kids first!

#44 SunShowers on 01.02.19 at 7:27 pm

Sorry about the language, Garth. I didn’t think that swearing at an unfeeling, intangible entity such as the market would be a problem, but it’s your blog!

In any case, I always think it’s ironic when people ask “how do you like socialism?” I can only assume you mean socialist policies (as opposed to actual socialism, which is worker/community ownership of the means of production.) To which the answer is…it’s awesome!

If you like your healthcare being free at the point of use, you like socialist policies. If you like not being charged to use the roads you bike on, you like socialist policies. I could go on forever! The only people who DON’T like socialist policies are capitalists, but who cares about what they think?

“B…But…the market!” You protest.

And? Who cares about the market? 80% of all financial assets are held by the richest 10% or something like that? And as you often say, for better or worse, most of the 90% typically have everything invested in GICs. Not the most market-sensitive of investments.

“Aha!” You retort. “If people were PROPERLY invested, with 60% in growth assets and 40% in safe stuff, with appropriate global diversification, THEN they should care about the market!”

Nope.

Let’s imagine someone with diabetes. How much exposure to Eli Lilly do you think they’d have with the standard swath of growth ETFs? Probably a negligible amount.

Insulin prices have tripled in the last 10 years. That’s not so bad here, in the Democratic People’s Republic of Canukistan. But in the land of the free and home of the brave, where bald eagles eat dirty Euro commies for breakfast and cover your car in freedom droppings, it’s been a big problem.

So the question is, how much do you need to have invested with Eli Lilly before your stock gains exceed the increased cost of your insulin?

The answer? Too much. Unless you’re on the board of directors.

The moral of the story? Market gains will NEVER financially offset the increased costs and reduced services to working class consumers necessary to generate those market gains. That’s why the bottom 90% doesn’t care about the market.

Thank you and goodnight! Happy new year! All the best to Garth and Bandit, he’s a good boy.

#45 Vampire studies on 01.02.19 at 7:27 pm

29 Al – WDL has a pension, which I don’t. I also have a business, substantial savings, and no mortgage. Considering my education, age and occupation, I am somewhere in the broad range of ‘average’ for net worth.

I don’t have an iPhone, a Porsche or a rolex.

I don’t see any problem here. Maybe it’s just you?

#46 not 1st on 01.02.19 at 7:52 pm

35 Centre-Right? on 01.02.19 at 7:08 pm
Watching Scheer try to flip flop his positions to look electable is laughable.

—–

If sheers dog runs for PM I will gladly vote for the dog. I would vote for those yogic flyers. ABT

https://www.cbc.ca/archives/entry/the-magic-of-the-natural-law-party

#47 not 1st on 01.02.19 at 7:56 pm

People who run their own businesses as well as docs and other professionals do not contribute to the CPP. They know they will never get back what they pay into it and the program is wobbly. These people invest in their own retirements. Counting on the govt for anything is risky.

If the program is so well off, why did the govt raise the contributions and now encourages people not to take the payment. Sounds like they know what we already no. Program insolvent after baby boomers are done with it.

#48 Barb on 01.02.19 at 7:57 pm

Congrats Wendy on having your priorities correct!
Kids, downsized house, dog.

Yes, take CPP as soon as possible.
I did.
Icing on the financial freedom cake.

#49 acdel on 01.02.19 at 7:59 pm

An article for Smoking Man.

https://www.dailymail.co.uk/sciencetech/article-6549653/Cosmologists-claim-universe-riding-expanding-bubble-extra-dimension.html

Hope you do not mind Garth, thanks.

#50 Shane Garish on 01.02.19 at 8:03 pm

I did my best to save all my life and retired back in 2018. My RRSP’s, TFSA’s, cash accounts are maxed out at $765,155 which provides me with $2,377 a month interest from my bonds.

I have a small LIRA of $85,000 which gives me another $226 a month interest. My CPP, OAS is another $1,524 a month. I am still $1,874 a month ahead every month with all my bills, rent paid etc. Topped up TFSA and non-registered ETF’s is what I will do with this monthly surplus starting in 2019.

Good thing I sold my house last year and pocketed the big gain I got. Finally have no debts of any kind, yes debt free 100%.

#51 crowdedelevatorfartz on 01.02.19 at 8:05 pm

@#22 dakkie
Housing Bust in Sydney & Melbourne Gains Momentum

+++++

Who cares.
When the real estate ponzie here is on its knees begging for buyers………then I’ll pay attention.

#52 Shawn Allen on 01.02.19 at 8:09 pm

So who gets maximum CPP?

Of course it’s the people who had at least modestly good jobs for most of their careers. Anyone who is going to need it to pay the rent is unlikely to be eligible for anything close to the maximum amount.

I was going to give some details but it would only inflame some people.

The two most important decisions for a young adult are who you marry and what your career is.

#53 Lorne on 01.02.19 at 8:15 pm

#32 IHCTD9 on 01.02.19 at 7:02 pm
#13 Bob Dog on 01.02.19 at 5:28 pm
Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.
————

I own my own water service. I own my own sewage service. I have to pay per bag for garbage services. Same patched pavement out front as there was 30 years ago.

My taxes keep going up…
……..
How do you enjoy not paying when you go see a Dr. or have surgery? Socialism!!

#54 crowdedelevatorfartz on 01.02.19 at 8:16 pm

@#37 Dolce Vita

re death clock.

=====

Apparently I dont need to save for retirement.
I’m past my “due date”……

#55 Try to understand Socialism on 01.02.19 at 8:18 pm

BC real estate. In fact, here are the only 38 words you need to know about the latter: moronic taxes, combined with the stress test, have made houses nobody could afford cheaper while making cheap houses unaffordable. Lose-lose. The market’s in the midst of a political meltdown. So, how do you like socialism so far?
………
Like it a lot! You might want to live here before pontificating on how terrible it is.

#56 Steve B on 01.02.19 at 8:30 pm

I will have to disagree with your assertion that taking CPP early is the way to go.

First of all, if you die sometime between 60 and 70 without taking it, who cares, you’re dead (if you have known health problems that will result in probable death before age 74, then that is a different story)?

Second, why add to your taxable income unnecessarily? Get investments out of RRSP/RRIF/DCPP accounts at as low a tax rate as possible. CPP and OAS just add to taxable income.

Third, a couple can create a very nice DB plan for themselves by delaying CPP and OAS, plus reduce overall lifetime taxes (especially between 60 and 70), plus reduce taxes on the last surviving spouses terminal tax return (any money left in a registered account like RRSP/RRIF/DCPP is taxed as income).

Finally, the breakeven point is about age 74. If you think you’re going to die before then, take it early. Otherwise, you will be better off financially by delaying.

If you did no saving and desperately need the money to eat, then take it early. Otherwise, wait until 70 and enjoy a 42% increase in your payment (plus, CPP is indexed to inflation on top of the aforementioned 42%) creating your own DB pension and saving yourself a lot of money in tax.

Create a comprehensive financial plan that looks at your overall financial picture and don’t make decisions like when to take CPP in isolation.

#57 TRUMP on 01.02.19 at 8:32 pm

TAKE EVERY DIME YOU CAN GET TODAY!!

Your not guaranteed tomorrow especially when you get into your mid 60’s.

This blog is actually starting to become useful.

No more talk about RE and more about diversification of liquid assets is how we bring prosperity back to the brain-washed RE lovin duds and keep the younger ones out of the trap.

#58 Out Of Work CEO, Will Travel on 01.02.19 at 8:54 pm

Garth is right on the money. Every last fogey I know between 60 and 70 has had health issues or have been impacted to some degree with their health…we have no guarantee of longevity so pretending we might live to 85 is foolish and high risk and naive. Take the CPP at 60.

#59 JM Keynes on 01.02.19 at 8:57 pm

#13 Bob Dog on 01.02.19 at 5:28 pm
“Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense…”

It’s called a mixed market economy to use economic jargon. Taxes are the price we pay to live in a civilized society. Ralph Nader’s latest email was all about our health care system versus the USA. He gave 25 reasons why our system should be adopted. What many good folks on this blog don’t get is that our whole economic system has a symbiotic nature. Government workers for instance provide a stable aggregate demand for the economy. The classical economic folks fail to understand or refuse to understand that classical economics was tried in its every detail during the Great Depression and failed. Failed miserably. We have not had a depression since because of our mixed market economy. Canada couldn’t get back from the Bretton Woods conference in which the great Keynes outlined his economic ideas fast enough. Voted 2nd in the world as the best place to live last year….

#60 DON on 01.02.19 at 8:59 pm

#42 BC Assessed Values – We are all Millionaires Now on 01.01.19 at 8:36 pm

Against everyone’s advice to not buy an overpriced home in Kelowna.

The mortgage is $450,000. The place cost $570,000 in 2015.

I just got my BC Assessed letter saying that it is valued at $906,000.

Big middle finger to everyone who told me I was nuts.

This has been the easiest way to join the drug cartels without doing anything supposedly illegal aside from owning a home – the instrument of choice for washing money in BC.

My buddy in Nanaimo beat me out though. 27% jump for him this year. Impressive. I heard this is going to continue up Island for awhile.

NDP couldn’t close out a drug case if they tried.

If you want to know where the drugs and money are flowing that will sky rocket home values just follow the spec tax.

The spec tax should be called the cost of allowing drug cartel business tax.

The government is very in tune with what is happening and it is too late to right this ship.
*****************

https://info.bcassessment.ca/Services-products/Understanding-the-assessment-process/Key-dates

“July 1 — Valuation Date
The date actual (market) value of properties is determined for the purpose of assessment rolls.”

So the Kelowna and Nanaimo markets were valued prior to the wheels coming off the housing market. If you want to pay lower taxes – you have a certain amount of time to dispute.

Money from people selling out in Van is now a trickle on Hawaii of the North. Seems as if the market is holding its breath. 80% of Americans living cheque to cheque…what no HELOCs? New price signs are frequently seen. Where have all the sold signs gone?

Market prices are tooooooo UN-affordable for the average family to buy an average house in a cold or monsoon environment. This one factor alone is the Kryptonite. Money laundering, drugs, speculation, FOMO, etc increase momentum. Trade wars and arresting foreigners isn’t good for business.

YIKES!

#61 Leo Trollstoy on 01.02.19 at 9:05 pm

#6 Drew on 01.02.19 at 5:12 pm
Is the $6000 limit on 2019 TFSA official? I see articles saying that it should be, but nothing definitive.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html

Scroll down

#62 joblo on 01.02.19 at 9:06 pm

Sheer is so lame, what was that commercial?
His mommy blah blah blah

#63 DON on 01.02.19 at 9:18 pm

#14 yvr_lurker on 01.02.19 at 5:29 pm

First of all, the BC NDP had nothing to do with the mortgage stress test making it more difficult for millenials to qualify for mortgages. Prices in the condo market were in full overdrive in the last two years of Christy’s reign, especially when she put in the crazy 25K loan scheme. Totally bogus for you to claim that the NDP goosed the lower end of the market. In YVR Prices of SFH are coming down (still unaffordable to most), townhouses and duplex as well (mine down 7% from BC assessment), and in the past 6 months the condo market is following suit. Give it another few years and the broad-based market at all levels will be more affordable. No need for the severe stress test at this stage since rates are not going up fast.
**************

It took the Harper conservative government to essentially goose the bubble for revenue sake, and the local BC Liberals/Cons/Social Credit to sit back and enjoy the windfall tax revenue (etc) masquerading as fiscal management. They sat by too, didn’t even bother checking as it would hurt voters in the paper gain wallet book. No wonder the Federal government is quiet on the issue.

As for the NDP they will go where the votes are…and as the Mills dampen the Boomer vote – the double edge sword.

The housing market was doomed regardless of who’s in power as it goes down.

#64 Shawn Allen on 01.02.19 at 9:29 pm

#44 SunShowers on 01.02.19 at 7:27 pm whines:

Market gains will NEVER financially offset the increased costs and reduced services to working class consumers necessary to generate those market gains. That’s why the bottom 90% doesn’t care about the market.

***************************
Some people figure “If you can’t beat ’em, join ’em”

I suppose the majority like SunShowers figure instead: “If you can’t join ’em, beat ’em.”

Also this is the wrong blog for those unwilling to try to get into the top 10% (at least)

#65 Linda on 01.02.19 at 9:30 pm

I’m with Garth on this one. Absolutely take CPP at age 60 unless it is the only retirement income you will have, because you did not or could not set aside funds for your ‘golden years’.

Keep in mind that ‘maximum’ CPP – if you qualify – is roughly $13,600 per year before tax right now. Also keep in mind that you must not apply prior to age 65 to receive ‘the max’ – otherwise, there is a stiff penalty for taking it early. Yes, working to age 70 will increase your eventual CPP, but the financial benefit of delaying it that long is only realized if you live longer than ‘the average’. As Garth points out, the stress of scrimping when you could have the funds while you may still be able to enjoy them is simply not worth it.

Finally, ask yourself whether you trust your government to keep their pension promises. Take it at 60 while you still can.

#66 Dawn Sorenson on 01.02.19 at 9:32 pm

I know GIC rates are low today at 3.25% to 3.75% at best but my friend just won 4 mil and even at rates like that $11,000 to $12,000 a month looks good to me.

#67 The real Kip on 01.02.19 at 9:33 pm

Can we lower the flag to honor a true Hero tonight, Super Dave Osborne died today. Even though he was born American I think of him as a true Canadian hero.

#68 Nobel Laureate on 01.02.19 at 9:36 pm

Always take the money now.

We’ve got global warming, global cooling, inflation, droughts, earth quakes, peak oil, nuclear war, the insect apocalypse, GMO’s, Ebola, plastics in the ocean (and no it doesn’t come from straws), over-fishing, self driving vehicles, AI, and Justin Bieber to worry about. Any of these could end the world as we know it at any moment.

So take that CPP as soon as you can and by some scotch and a nice cigar with the money.

#69 DON on 01.02.19 at 9:37 pm

#32 IHCTD9 on 01.02.19 at 7:02 pm

#13 Bob Dog on 01.02.19 at 5:28 pm
Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.
————

I own my own water service. I own my own sewage service. I have to pay per bag for garbage services. Same patched pavement out front as there was 30 years ago.

My taxes keep going up…
************

I get where you are coming from (by the way there is talk of putting meters on private wells).

But then again, the degree of capitalism we are now experiencing is based on rising profits – that in the end is the main goal. Your taxes are also going up as a result of outsourcing getting even more expensive as they become profit driven. Not saying wrong or right.

The main reason is that all governments are spending on new and fantastic things rather than needs (updating infrastructure) or saving for downturn. Political parties are just their uniforms so they can identify one another. They all seem to take advantage of a good situation (more or less).

#70 The Real Mark on 01.02.19 at 9:43 pm

Deflation being what it is combined with average life expectancies rising it may very well be a phenomenally poor decision to take CPP any earlier than 80. I know I will live until at least 130 and I want those last 50 years to be excellent. I imagine I will be somewhere warm such as a beach in Cuba, relaxing to the warm tones of Ross Kay while the beautiful orange sun sets over the ocean. Oh I just can’t wait to have to to replay the fantastic podcast selection Ross Kay has curated over the years with Howestreet.

#71 TurnerNation on 01.02.19 at 9:47 pm

Congrats JIMMY #1 2019. You are model for all.

Best thing I’ve heard all week: “If you are only one mistake away from being into poverty then you ain’t Middle Class.”

Such as: job loss, illness, interest rates rising, stock market rout. And so forth.

#72 DON on 01.02.19 at 9:47 pm

#58 Out Of Work CEO, Will Travel on 01.02.19 at 8:54 pm

Garth is right on the money. Every last fogey I know between 60 and 70 has had health issues or have been impacted to some degree with their health…we have no guarantee of longevity so pretending we might live to 85 is foolish and high risk and naive. Take the CPP at 60.
***************
My mom took her CPP early and died at 68 from a heart attack – unexpectedly.

I will take it early as well, just need to invest it with patience in mind.

#73 -=jwk=- on 01.02.19 at 9:56 pm

Housing in Canada is expensive simply because not enough homes are being built to meet demand.

This is hilarious. If anything we are massively overbuilt – everyone seems to own an investment property or two, a cottage, etc. Housing is now a tradeable commodity, and the government guarantees the loans.

Housing starts in Canada are around 200k+ year. Thats over 4000 a week. So yes, we have built the 4000 units needed for those new immigrants already…

————–

#13 Bob Dog on 01.02.19 at 5:28 pm
Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.
————

I own my own water service. I own my own sewage service. I have to pay per bag for garbage services. Same patched pavement out front as there was 30 years ago.

My taxes keep going up…
</i?

Do you have own your own hospital too? Schools? Airports? Electric generation station? Highways? UNless you never leave your property and never have anything delivered to your property (including visitors), you are a socialist.

#74 Government Shill on 01.02.19 at 9:56 pm

I’ll wait until 65 to take cpp thanks…

…bridge benefit.

:)

#75 Oilaphant on 01.02.19 at 10:32 pm

#66 I know GIC rates are low today at 3.25% to 3.75% at best but my friend just won 4 mil and even at rates like that $11,000 to $12,000 a month looks good to me.
————-

Obviously the smartest thing one could do with that windfall would be to invest it in a conservative, balanced dividend equity and bond portfolio. Never touch the principle, never even look at it; go to bed every night telling yourself it’s “guaranteed”.

What is this idea of “guaranteed” people have?? It’s a sucker’s game. It’s guaranteed to YOU because the financial institution selling it to you knows they can easily make more than that and pocket the profit after paying you the “guarantee”. Never even mind the tax implications. Oi!

Why oh why are lottery wins wasted on the clueless and/or elderly! (seriously, why do 85 year olds win all the jackpots!?) Give me even a $1M windfall and I’d be set for life.

#76 Basil Fawlty on 01.02.19 at 10:33 pm

“So, how do you like socialism so far?” Like the socialist low interest rate policy that pushed real estate, bonds and the stock market into the current biggest bubbles in world history? The NDP are mere socialist pikers in comparison.

#77 Jacky Dangerous on 01.02.19 at 11:00 pm

Wow, the $C dollar is crashing. The forecast was that the Loon would stablize after Nafta signed, instead the Trudeau Peso continues to crash through the 75 cent low of the darkest Nafta uncertainty. This shows how international investment is flooding out of Canada and zero interest in foreign money coming in. The future looks scary under Trudummy. If this continues we’ll see a sixty cent moniker within months, the fall is fast and hard, the next low is 69 cents, below that the next level is in the mid-50’s.

#78 Randy on 01.02.19 at 11:01 pm

CPP ….so good you are forced to join… in the end it was just a tax.

#79 JSS on 01.02.19 at 11:04 pm

Angelina is so HAWT. She makes my knees wobble.

I was going to make a relevant financial comment but I forgot what I was going to write.

#80 Ca$h money on 01.02.19 at 11:15 pm

Haha real mark #70. Classic comment!

#81 akashic record on 01.02.19 at 11:18 pm

#53 Lorne on 01.02.19 at 8:15 pm

#32 IHCTD9 on 01.02.19 at 7:02 pm
#13 Bob Dog on 01.02.19 at 5:28 pm
Every developed country in the world has both socialism and capitalism. Why are people bashing socialism? Unless they are a sociopaths it makes no sense. If you insist, then practice what you preach and stop using roads, water, sewage and garbage collection services.
————

I own my own water service. I own my own sewage service. I have to pay per bag for garbage services. Same patched pavement out front as there was 30 years ago.

My taxes keep going up…
……..
How do you enjoy not paying when you go see a Dr. or have surgery? Socialism!!

—-

What healing is, not covered by OHIP.

I go to the doctor for check-up every 2 years to get test results. Sure, my family doctor tries to put me on some prescription drug every time lately, that I kindly decline.
For the next time that problem is gone, he offers drugs for something else, “to prevent something bad to happen down the road”, rinse and repeat. Last time I could have made him happy to take at least a flu-shot, but I had to disappoint him.

Healing is happening somewhere else, and I haven’t taken prescription drugs, except at dentist, for almost 3 decades now.

By the time I was teenager – long time ago – I was resistant to almost all antibiotics, due to continuous treatments by a variety of specialists. I was supposed to have some additional surgeries to eventually fix the same condition, that was detected when I was 5, when I had my first and last surgery. I never went for the next one, that I was supposed to have, just get it checked out once about every decade. This summer I got this checked out again, the surgeon who didn’t have any of my medical history, could not find anymore my life-long condition, that would have warrantied any medical treatment, let alone surgery.

I don’t take the drugs the doctor wants to give me, for all the usual stuff, for most of the people at my age mindlessly popping pills, maybe for years already.

But I am willing to listen, learn, change drastically my thinking, habits, life-style, diet, whatever is needed to re-enable my body to heal itself. And most importantly probably: I am extremely grateful, I express my sincere, heartfelt gratitude as often as I can, for the gift of life, for all the amazing creatures, spirits who surround me, some contribute to my healing. At least before I go to sleep and before I get out of the bed in the morning, every day.

None of this is covered by OHIP, it’s all individual intention, responsibility, maintaining relations with guidance from many amazing healing re/sources, minds – and it works great.

The last thing I want is going back to “socialism”. I gave it a chance for 2 decades. I am feeling much better now, thanks. I am happy to donate with the best intentions and gratitude the OHIP portion of my income tax for others, who need it.

#82 Nonplused on 01.02.19 at 11:42 pm

#70 The Real Mark

Ha ha ha, live to 130? Why would you want to? Remember you only get 2 knee replacements and then they can’t do it again, noting left to attach the titanium to.

Living to 130 will be pretty much like being 90 for 40 years, only progressively worse. Don’t do it. Sometimes it’s best to step off the field.

Also I came across a good John Cleese joke today: “How do you make God laugh? Tell him your plans.”

#83 Vampire studies on 01.03.19 at 12:32 am

47 not 1st “People who run their own businesses as well as docs and other professionals do not contribute to the CPP.”

The self-employed pay double CPP because they are
both the employee and the employer.

#84 Stan Brooks on 01.03.19 at 12:56 am

#56 Steve B on 01.02.19 at 8:30 pm

Take it/The CPP as soon as you can and invest the money while it is still worth something.

Inflation will eat it and you will get in your late 70es or 80 -es a guaranteed …. nothing.

Cost of living increases by 6-8 %, soon to be north of 10 % annually, while CPI ‘indexing’ is between 1 and 2 %. Calculate for 20 years what this will mean to your ‘pension’.

The equivalent of ‘enhanced’ max CPP will most likely be around the purchasing power of 300 bucks a month today 20 years from now.

If people invest all these CPP money in their 40-something working years I guarantee you that you will earn much more than the CPP they will give you + you control the money and you can pass it to your hairs.

The very fact that a ‘pension’ system in the 21st century in a ‘G7’ country can not cover half of your rent is disturbing.

The added insult to injury reduction of that ‘pension’ by the inflation caused bu the most irresponsible housing credit bubble in history is simply outrageous.

And the dark clouds gathering over that RSSP you considers yours, governments consider theirs….

Remember: It is not yours until you withdraw it (subject to dynamic tax rate determined by government), in many places pensions money is not taxable at all.

As for the alternative ‘investment’ in housing: A house is worth nothing in a place with no jobs.

Just go to Buffalo for confirmation.

It used to be a great city/on par with Toronto.

#85 crowdedelevatorfartz on 01.03.19 at 1:15 am

@#71 Turnernation
““If you are only one mistake away from being into poverty then you ain’t Middle Class.””

++++

Kinda like the old adage,
“50% of the population are two missed pay cheques …from living on the street.”

#86 Smoking Man on 01.03.19 at 1:20 am

Day late a penny short. Vegas was a blast.

2019 predictions.
Comments section of Greater fool last place on the internet were conservative opinions go sort of un censored.

Markets rebound huge once Trump takes down Meuller for his role in 911

The FED backs down on rate hikes. After Trump is getting ready for an executive order to audit the Fed.

Trump comes clean on the UFO files.

Justin Trudeau wants to ban any word that makes individulism look good.

The UN gets defunded by USA, falls apart a new version is formed with normies at the controls.

A big earth quake hits California while I’m in Canada moving my last million out of the country. Then I relocate and change my residency to a tax free island in the Carbian.

#87 DON on 01.03.19 at 1:38 am

Year over year drop in sales of 58%

“Hong Kong’s cooling home sales set developer, agents on fire over dwindling fees”

https://www.scmp.com/business/companies/article/2180497/hong-kongs-leading-property-broker-centaline-cries-foul-sino-land

year over year drop in sales of 58%

#88 Smoking Man on 01.03.19 at 1:45 am

#49 acdel on 01.02.19 at 7:59 pm

An article for Smoking Man.

https://www.dailymail.co.uk/sciencetech/article-6549653/Cosmologists-claim-universe-riding-expanding-bubble-extra-dimension.html

Hope you do not mind Garth, thanks.
…….
Wrong. Over schooled at it again.

Think of the Big Bang as a big orgy., just kidding now that I have your attention.

Think of it a a firework. Black holes coming together, tighter and tighter. Till finally, it explodes. The matter races off in all directions.

In zero gravity. The particles of the old flame have mass and gravity.
They start to shrink and confidence into themselves. Then they get attracted to each other.

But in the shrinking process. If you are standing on a flake of dust and look up there is an illusion that you are moving away from each other.

Where the f is my nobel peace prize.

Oh yeah, they only give those out to globalist teat suckers.

It’s not me.

#89 dosouth on 01.03.19 at 2:15 am

What’s your place worth now….?

BC Assessment has released the new taxation news on everyone’s BC property. It is based up to July 2018 when the slide was just starting and now…..this will be interesting.

Not happy with your property assessment? Here’s how to appeal it

#90 crazyfox on 01.03.19 at 3:49 am

#65 Linda on 01.02.19 at 9:30 pm

Its hard to say one choice fits all. Some make too much money to take pensions early, others are physically too unhealthy to wait for it at 65 and may not live past their 70’s, even 60’s. Others still might take it early because they need the money and then live into their 90’s and regret it. I think it varies from individual to individual.

Otherwise, with real estate dear readers/dogs… (that sexy old topic) is there a way for any government to engineer a soft landing from a bubble? Y’know, try to create flatlined or gently falling valuations across all sectors for a few years or more until incomes catch up? In Canada in our largest cities we have bubbles and have it bad.

Taxation, rate stress tests, what other choices do governments have to control the damage of a real estate bubble previous governments leave behind? Shorten 25 year mortgages to 20? 15? Its going to be credit driven through regulations of some kind… credit regs created bubbles to begin with so, in what form?

The whole point of government is to never let valuations blast past earnings and potential higher interest rate scenarios to begin with. So, historically, with a Canadian real estate bubble on our hands especially in our largest cities, what do new governments do with the horror show old governments have left behind?

I mean, what can they do? Something different than what they are doing right now, like what? What does that look like? Are we complaining at today’s government policies because its fashionable to blame today’s governments on yesterday’s bad policy makers or are we complaining because we have better policies in mind? If so, what are they. Please, I’m sure I’m not the only one curious to know.

Anyone can criticize. Far fewer follow criticisms with answers. Answers anyone? Real estate bubbles in our major cities are obvious. How would you deflate the bubble in a gentle orderly fashion over years if its even possible…. hmmm? Curious minds want to know.

#91 Howard on 01.03.19 at 7:30 am

Mean Gene Okerlund. Dead at 76. Legend.

#92 crowdedelevatorfartz on 01.03.19 at 7:50 am

@#87 Don
“year over year drop in sales of 58%”

+++++

Hong Kong?
Irrelevant until its Vancouver/ Toronto/ etc.
Until the RE meltdown works its way across the Pacific from Oz or HK…… it’s just background noise.

But….it would be amusing watching Realtors fight over the last obscene commission scraps in a tanking market…
I noticed CBC 6pm “news” last night actually mentioned the hint that things might not be so great in Vandelusional Real Estate sales.
God forbid Gobbel tv ever bite the hand that feeds it and say something similar.

#93 IHCTD9 on 01.03.19 at 8:05 am

#91 Howard on 01.03.19 at 7:30 am
Mean Gene Okerlund. Dead at 76. Legend.
____

That’s a long life in that biz…

#94 Remembrancer on 01.03.19 at 8:11 am

#13 Bob Dog on 01.02.19 at 5:28 pm
Canada is the trial run for globalization. The central planners are trying to see how far a population can be pushed before the riots begin. As an example witness the gentrification of Vancouver.
——————————————————–
What pray tell is your definition of globalization? No really, I’m interested in hearing…

#95 Remembrancer on 01.03.19 at 8:18 am

#14 yvr_lurker on 01.02.19 at 5:29 pm

Except the assessment is a thumb suck which seems to be a YVR obsession status symbol, here in the GTA we want it to be low as possible not higher than our neighbours…

The real measure of affordability is not a government thumbsuck of your street based on a point in time and past sale prices with dubious inputs like whether your finished basement is claimed as finished, its the multiple of household income that translates to carrying costs, etc for the housing you can or should be purchasing if within your means…

#96 Remembrancer on 01.03.19 at 8:21 am

#19 Jacky Wong on 01.02.19 at 5:55 pm

How did you get through the great cyber wall or is this posting state sanctioned?

Congrats on Chang-e-4 though, that’s cool…

#97 Trumpocalypse2019 on 01.03.19 at 8:22 am

Take the CPP money now. Most of you will probably survive if you need five more years to reach 65. At least if you take it now you’ll get some months worth of income. Use it to buy quality canned food.

Trumpocalypse takes a dramatic turn today.

Are you ready?

Dems now control the House, effective just hours ago.

Pelosi is one tough character. She just said, minutes ago, that indictment is on the table.

https://www.businessinsider.com/nancy-pelosi-mueller-could-indict-trump-while-in-office-2019-1

PREPARE

#98 crowdedelevatorfartz on 01.03.19 at 8:35 am

@#67 Govt Shrill
“I’ll wait until 65 to take cpp thanks…”

****

Careful, an exgovt retiree I know retired at 60 (full govt pension natch) and didnt live to see his 61st B-day. Sudden unexpected Heart attack. No CPP

#99 Where's The Money Greedope? on 01.03.19 at 8:36 am

DELETED (Libel)

#100 dharma bum on 01.03.19 at 8:51 am

In fact at age 60 stick your hand out, take the CPP and put it into your tax-free account in growthy ETFs. – Garth
——————————————————————–
https://www.youtube.com/watch?v=VvCcD-BByOc

#101 V3Y 2W1 V3Y 2B0 [email protected] Where's The Money Greedope? on 01.03.19 at 8:51 am

Re: #90 crazyfox on 01.03.19 at 3:49 am
#65 Linda on 01.02.19 at 9:30 pm

Its hard to say one choice fits all.
++++++++++++++++++++++++++
Only one choice that fits all…
https://www.youtube.com/watch?v=xAEp557SbGA

#102 Renter's Revenge! on 01.03.19 at 8:56 am

“Retire as soon as you can.”

“Take CPP as soon as you can.”

Jeez, it’s almost as if you have to twist people’s arms to get them to enjoy their lives.

#103 dharma bum on 01.03.19 at 9:08 am

#17 Trading Naked

The mother of a friend of mine passed away mere days after her retirement from a lifelong career in public health.
——————————————————————–

Now THAT’S irony.

#104 Gravy Train on 01.03.19 at 9:12 am

#20 Shawn Allen on 01.02.19 at 6:00 pm
“Should you take CPP early or not?

“The answer of course is whatever you wish the answer to be. You will find plenty of math and arguments to support taking it at 60, 65 or even 70.

“It’s an individual choice based on individual circumstances. Get advice from a few different sources if you can. Then do what feels right for you.…”

Wrong. You didn’t mention—or perhaps realize—that everyone here in the steerage section is treating all dollars, whenever received, as having the same value; they’re not all the same. A dollar received today is worth more than a dollar received tomorrow due to the time value of money. (See link below for details.)
https://en.m.wikipedia.org/wiki/Time_value_of_money

Future cash flows must be appropriately discounted to arrive at their net present value. The higher the discount rate, the less valuable are future cash flows. (See links below.)
https://en.m.wikipedia.org/wiki/Discounted_cash_flow
https://en.m.wikipedia.org/wiki/Present_value
https://en.m.wikipedia.org/wiki/Net_present_value

Shawn, if you use a reasonable market return of 7% as the discount rate, and do the math, you’ll see that—no matter how long you live—taking CPP at age 60 is best.

Garth is right yet again! (It’s why I read his blog.) :)

#105 JB on 01.03.19 at 9:16 am

#86 Smoking Man on 01.03.19 at 1:20 am

Day late a penny short. Vegas was a blast.

2019 predictions.
Comments section of Greater fool last place on the internet were conservative opinions go sort of un censored.

Markets rebound huge once Trump takes down Meuller for his role in 911

The FED backs down on rate hikes. After Trump is getting ready for an executive order to audit the Fed.

Trump comes clean on the UFO files.

Justin Trudeau wants to ban any word that makes individulism look good.

The UN gets defunded by USA, falls apart a new version is formed with normies at the controls.

A big earth quake hits California while I’m in Canada moving my last million out of the country. Then I relocate and change my residency to a tax free island in the Carbian.
……………………………………………………………………
My 2019 predictions

Smoking Man comes out of the closet as a Liberal.
Smoking Man gets professional help for his delusional mental health issues.
Smoking Man attends a Trump rally and gets mistakenly sucker punched John Franklin McGraw as Trump tells the crowd to get him out of here.
Smoking Man finally stops drinking.
Smoking Man finally stops smoking.
Smoking Man takes an ESL course to be able to converse in at least one earth language.
Smoking mans wife leave him for another Liberal who has all of his teeth and hair and no smokers breath.
Smoking Man gets detained at the border trying to return to Canada where border agents tell him he is no longer welcome in the Great White North, stranding him from retrieving his illegally hidden millions to take them to the Caribbean for tax evasion.
Smoking Man applies for US citizenship but is rejected and deported because he is an Alien!

#106 IHCTD9 on 01.03.19 at 9:19 am

#73 -=jwk=- on 01.02.19 at 9:56 pm

Do you have own your own hospital too? Schools? Airports? Electric generation station? Highways? UNless you never leave your property and never have anything delivered to your property (including visitors), you are a socialist.
_____

I’d be completely happy with a pay system for health care if there was a real competition between several providers. No problem paying cash for health care here.

I was educated in Private Schools as are my kids. I pay cash for this service.

I almost have my own electricity plant completed, yes.

I’ve been on a plane once in my life, I’d get by just fine without ’em, happy to see them disappear actually.

I don’t mind paying taxes for roads and bridges etc – but evidently my taxes are being used for other things while the roads and bridges rot.

The idea that we need “socialism” in order to have hospitals and electricity gave me a good chuckle.

There are some things government must provide (defense, law and order, enforcement, infrastructure, etc…) and I am happy to pay taxes for these things. However, I can easily see a lot of my taxes go mostly towards other things – some of them just unbelievably stupid.

…and FWIW, I pay way too few taxes to be a proper socialist – and this is not by accident.

#107 IHCTD9 on 01.03.19 at 9:29 am

#85 crowdedelevatorfartz on 01.03.19 at 1:15 am

Kinda like the old adage,
“50% of the population are two missed pay cheques …from living on the street.”
______

Leading then to: “There are only nine meals between mankind and anarchy”

#108 Frank Blood on 01.03.19 at 9:31 am

If you are working full time, should TFSA still be taken at 60? What about loss to tax? Perhaps wait until winding down to part time?

#109 Howard on 01.03.19 at 9:34 am

#93 IHCTD9 on 01.03.19 at 8:05 am
#91 Howard on 01.03.19 at 7:30 am
Mean Gene Okerlund. Dead at 76. Legend.
____

That’s a long life in that biz…

————————————-

He was a wrestler only for a very short time. He was an interviewer and commentator.

#110 baloney Sandwitch on 01.03.19 at 9:56 am

Great advice Garth. I am one of the camp thinking about delaying CPP. I will have to reexamine my thinking.

#111 not 1st on 01.03.19 at 9:59 am

Pelosi is the most air header person to hold a major office in the US and that’s saying a lot.

If a US president can be indicted under weak evidence like Mueller has, then a sitting president can pardon himself as well.

#112 not 1st on 01.03.19 at 10:20 am

#73 -=jwk=- on 01.02.19 at 9:56 pm
Do you have own your own hospital too? Schools? Airports? Electric generation station? Highways? UNless you never leave your property and never have anything delivered to your property (including visitors), you are a socialist.

——

This is not socialism. These are public investments for the greater good of society. Everybody, as in all of us benefit from these expenditures.

Socialism is when you take the gains from one group and give it to another or redistribute it. There are tons of awful examples of this equalization being the worst.

#113 pay your taxes on 01.03.19 at 10:26 am

#8 soggy shorts
Sounds pretty good. What’s the return for the year that you redo the roof? Or the driveway? or the deck? Windows? Fence? Plumbing?

About the same as your returns for this year and 2015.

#114 Phylis on 01.03.19 at 10:35 am

#105 jb, worst predictions ever. Might as well predict the end of the world.

#115 robert james on 01.03.19 at 10:49 am

Pelosi an air header?? gee, I don`t know.. It will be fun to watch her kick Trump`s fat azz with her pointy toed high heels though daily.. Trump will probably like it though , maybe even more than getting peed on by Russian hookers seeing that it will free.. lol It would be nice to see “Tariff Man ” stand up and take a bow this morning now that the Dow is down 600 points due to China tensions..

#116 Bottoms_Up on 01.03.19 at 11:03 am

If you are 60, you have a 15% chance of dying by 70. If you are 70, you have a 13% chance of dying by 75.

By delaying CPP to age 70 you are effectively betting that you are in the 85% that make it to 70 and also in the 87% of those that make it to 75. Combined, you’ve got about a 3 in 4 chance of making it to 75.

Then, depending on your financial needs and planned use of the money, you are banking on being in good health at age 70+, whereas you could have been using it from 60-70 in better health.

Seems reasonable to take it at 60.

#117 Bottoms_Up on 01.03.19 at 11:08 am

98 crowdedelevatorfartz on 01.03.19 at 8:35 am
————————–
If married, the spouse likely gets 1/2 the original monthly payment. Sucks to have the pension reduced but at least its something.

#118 OttawaMike on 01.03.19 at 11:16 am

#112 not 1st on 01.03.19 at 10:20 am

Socialism is when you take the gains from one group and give it to another or redistribute it. There are tons of awful examples of this equalization being the worst.

—————————————-

you mean Insurance ?

#119 Lotty on 01.03.19 at 11:39 am

Love that idea of taking cpp at 60!Assuming that you’ll be be working till approx 65 & in the highest tax bracket – Is there any math to show if it’s still worth taking cpp while also working or to wait & coincide it with actual retirement to save on taxes??

#120 Alistair McLaughlin on 01.03.19 at 11:50 am

@ #15 not first, nice bigoted smear on Mormons. I’m surprised Garth let it stand. Have you ever met any Mormons? Get a life and talk to a few of them. Whatever problems the US has, Mormons aren’t one of them. (I’m not Mormon so let’s get that out of the way.) As for polygamy, it isn’t tolerated by the vast majority of Mormon congregations. That happens on the fringe that is not even accepted by mainstream Mormons.

Yes, the comment was a smear. I let it stand, because it smeared the poster more than Mormons. Good to know how prejudiced some folks are. – Garth

#121 Pre-retiree on 01.03.19 at 12:31 pm

Here is a great article about CPP – if you take it at age 60, the breakeven point of taking it at 65 is 74.
In other words after 74, you start to lose money. BUT it does not take into account that you might have invested that money.
On the balance, I would say take it at 60 and invest if you can. If you cannot invest it, that means you really need to take it.

https://moneycoachescanada.ca/blog/take-cpp-age-60/

#122 CPP on 01.03.19 at 12:32 pm

#117 Bottoms_Up – In 1982 the CPP made a change that was somewhat kept quiet. Once a divorce was completed that took place years past, the lady for example simply could fill out a form placing a lien on 50% of her ex-husbands CPP. A divorced lady working for Stats Canada told me all about it, and her old hubby will never be informed about the lien, because she did it laughing on the phone with me.

#123 Gina Hephburn on 01.03.19 at 12:34 pm

I’m glad China’s economy is faltering. Tariff man is the best. When they tax everyone else it is okay but when they tax an entire country oh watch out.

It is good to see Facebook and others faltering too.

#124 IHCTD9 on 01.03.19 at 1:07 pm

#45 Vampire studies on 01.02.19 at 7:27 pm

29 Al – WDL has a pension, which I don’t. I also have a business, substantial savings, and no mortgage. Considering my education, age and occupation, I am somewhere in the broad range of ‘average’ for net worth.

I don’t have an iPhone, a Porsche or a rolex.

I don’t see any problem here. Maybe it’s just you?
____

WDL is definitely doing better than the average Canadian, but here on the GF where like financially minded folks gather – he’s down here with me on the bottom end of things. Heading into retirement with an “ok” pension, 600K and no debt is a sweet place to be, but he should not be earning cross-hairs at this level.

I mean, we see posts from multi millionaires fairly regularly here – and even occasionally see a post from at least one verified Billionaire too.

Us schmucks trying to hit a single million via an entire lifetime of saving really should not be earning too much invective just for getting close.

#125 IHCTD9 on 01.03.19 at 1:19 pm

#118 OttawaMike on 01.03.19 at 11:16 am
#112 not 1st on 01.03.19 at 10:20 am

Socialism is when you take the gains from one group and give it to another or redistribute it. There are tons of awful examples of this equalization being the worst.

—————————————-

you mean Insurance ?
_____

Insurance companies don’t give your Premium to a 3rd world dictator for the advancement of Women’s rights.

Totally different.

#126 Blacksheep on 01.03.19 at 1:35 pm

Not 1st # 112,

“Socialism is when you take the gains from one group and give it to another or redistribute it. There are tons of awful examples of this equalization being the worst.”
———————————
Horgan’s NDP party is proceeding with the promised $ 200 per month daycare, to parties that qualify for the subsidy.

https://globalnews.ca/news/4648843/b-c-government-promises-53-child-care-locations-that-cost-parents-200-per-month-or-less/

Here is research done by CTV News claiming the average cost of daycare for a single child in Vancouver is $ 1172

https://www.ctvnews.ca/features/analysis-daycare-fees-on-the-rise-across-canada-1.3940099

So a family (single / married, appears irrelevant) with a gross annual income of $30K, having two, non special needs children between the ages of 18-36 months, requiring full time daycare in a licensed facility, could potentially qualify for a maximum taxpayer supported subsidy of $ 2120 per month, based on the BC gov. estimator below.

https://myfamilyservices.gov.bc.ca/s/estimator

I’m fine with supporting society to reasonable degree like we have for the past 30 years, but this is just an obscene example, of very expensive vote buying. Horgan has no idea what he’s doing and in shows in his policy / actions.

#127 Atrate on 01.03.19 at 1:48 pm

If a person is still working at age 60, and is making a good salary (say in the $100K+ range), to me it makes little sense to collect CPP at that point in time, as it could actually push the individual into a higher tax bracket, could it not?

#128 not 1st on 01.03.19 at 1:51 pm

Yes, the comment was a smear. I let it stand, because it smeared the poster more than Mormons. Good to know how prejudiced some folks are. – Garth

—-

So Trump can be attacked with impunity on this blog but a comment regarding Mormons own documented religious philosophy is a smear.

Any elected leader’s policies are open to criticism since many people are affected by them. Attacking people for their spiritual beliefs is prejudice. – Garth

#129 not 1st on 01.03.19 at 1:57 pm

If my gains are taxed and put into a service I can access, then that is not socialism. I can drive on the highways. I can visit any hospital in the country. My kids can go to any school or university in the country.

Anything that I cannot access or is restricted by policy is by definition socialism.

#130 millmech on 01.03.19 at 2:31 pm

#122
I believe that information is incorrect, both parties are allowed to make claims to each others CPP benefits from the time they were married, unless they agree to not make claims to it. Never heard of such a thing as a lien on CPP benefits, that would also require a separate court order.

#131 Stan Brooks on 01.03.19 at 2:35 pm

#126 Blacksheep on 01.03.19 at 1:35 pm

It seems this place is ‘socialist’ in taxes only but without the benefits.

1500 per month on average for childcare on Toronto?

https://www.ctvnews.ca/features/analysis-daycare-fees-on-the-rise-across-canada-1.3940099

No wonder the stingy slave owners need more imports, their shepple simply can not reproduce!

So family of 4 living in Jane and Finch area of Toronto with 2 kids in pre-school needs 5 000 after tax income just for school and rent, utilities excluded.

No eating, clothing, utilities, car, insurance, internet, TV.

Maybe it should be 10 k, as 5 k is too cheap and they are so rich. Premium life worth paying for.

Socialist countries (Germany for example) have free kinder-garden, university and people actually get pensions.

#132 Don on 01.03.19 at 2:39 pm

Avg benefit (at 65): $670 a month. Less 36% for starting at 60, gives: $429 a month. Times 12 = $5,148 a year. Assume work til 65, so lose further 28% to income tax (BC, middle-ish bracket), leaves $3,707 into TFSA annually.

Time value of money: $3,707 @ 7% compound return for 5 years, in TFSA grows to $21,317 at 65. Compound that for 5 more years, gets to: $29,898.

Assume tax bracket drops to 22.7% after 65. The $5,148 is then $3,979. For 5 years @ 7%, grows to $22,882.

So total in TFSA from early CPP: $52,780. (Used annual, because easier on my calculator; yes, would be higher with monthly payments, but probably not by much.)

Sun Life annuity calculator says age 70 male, buying $50,000 annuity, will receive annual $3,340 before tax. Non-indexed. Plus $5,148 at 70, gives $8,488 total income (future dollars). Part taxable.

Versus: $670 x 1.42 at 70 = $951 a month ($11,412 a year, future dollars), for waiting. Taxable, indexed. All taxable.

Excess in future dollars: about $250 a month, pre-tax. Not quite groceries for one; or part of a decent trip.

Excess per month at age 70 over age 60 receipt: $951 – $429 = $522 a month, times 12 = $6,264 a year.

Sun Life says that a $100,000 annuity, for 70 year old male, would generate $6,796 before tax; of which $6,264 is 92%, so let’s say extra capital of $100,000 x .92 = $92,000. Minus the $53,000 capital from early receipt = about $39,000, at age 70.

Discount $39,000 back to age 60 @ 7% = $19,825. In present dollars. One’s benefit for waiting. Not a lot; but perhaps enough for some. Plus no need to pay tax on whatever amount results in after-tax $19,825 (around $25,000 to $30,000 in the lower brackets). And how long does it take one to accumulate that amount of capital?

Absent a private pension plan and large-enough-on-their-own retirement savings, seems enough to matter when looking at sources of income in retirement. Health troubles the big unknown; one would adjust the math for those probabilities.

With early CPP, psychic benefit to have higher balance in one’s TFSA or whatever you spend it on; and, if unspent, an estate asset if one does die early. But with investment risk.

#133 Political Beliefs on 01.03.19 at 2:45 pm

Nobody should care or criticize those who pray to a different God within their House Of Worship. This matters not in our world. Every religion has political radicals without exception, and here is the problem of most concern that effects us all. This should be dealt with the law enforcement at hand, and our court system, but not personally by social media or public groups filled with anger or hatred.

#134 SunShowers on 01.03.19 at 3:38 pm

#129 not 1st
“Anything that I cannot access or is restricted by policy is by definition socialism.”

No, it is ‘by definition’ not.

so·cial·ism
/ˈsōSHəˌlizəm/Submit
noun
a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

There is a massive difference between the definitions of ‘socialism’ and ‘government programs’, but many people conflate the two out of ignorance or agenda.

Especially guilty of this are those whose minds have been poisoned by the likes of Fox News and Rebel Media to the point where they think that increased taxes or social programs will invariably lead to the ghost of Comrade Jack Layton kicking down their door with his jackboot to confiscate their toothbrush for the state.

#135 Remembrancer on 01.03.19 at 4:26 pm

#129 not 1st on 01.03.19 at 1:57 pm
If my gains are taxed and put into a service I can access, then that is not socialism. I can drive on the highways. I can visit any hospital in the country. My kids can go to any school or university in the country.

Anything that I cannot access or is restricted by policy is by definition socialism.
——————————————————–
Ahh, the clouds part and the sun shines through. So, if it benefits you then OK, if it benefits someone else that is in a circumstance you wouldn’t want to be in, then its socialism and not OK?

Nice philosophical world view you’re dragging around there buddy…

#136 LP on 01.03.19 at 4:35 pm

#130 millmech on 01.03.19 at 2:31 pm

re #122

I think #122 was fed a load of hooey. Family example: my former sister-in-law in her divorce settlement from my brother negotiated 50% of brother’s CPP entitlement but only for the years they were married. All the years before and after the marriage remain his.

#137 Tony on 01.03.19 at 5:53 pm

Re: #19 Jacky Wong on 01.02.19 at 5:55 pm

Buying homes and property worked out great for foreigners buying in Venezuela. Obviously you believe all the crap they print on those online newspapers while the converse of everything they print is true. You want to purchase into a country whose currency will appreciate vis-a-vis your local currency back home not the opposite like those stupid online newspapers print.

#138 Oh Really! on 01.03.19 at 5:54 pm

#136 LP – I saw the approval letter about the CPP issued by the government. This may have reflected the Family Reform Act in Ontario at this time. Not to be confused with future changes in the CPP in regards to the above.

#139 BillyBob on 01.03.19 at 6:10 pm

#19 Jacky Wong on 01.02.19 at 5:55 pm
The $C in Asia is taking a pounding. Nobody is investing in the Turdum economy so need buying of $C and it’s tanking. The C-Peso has fallen 10% against giants like the Thai Baht since Xmas. The Renmimbi is pegged to the USD and a 40% premium is there for the asking if any Chinese want a fat discount on Vancouver real estate. Have you bought Euros or U.K. pounds recently, bet you haven’t because the U.K. Pound costs $1.80!! Canadians are being screwed and impoverished. The First Class cabin from Vanc to Taiwan was empty aside from my wife and I. Upside was, no kvetching Canadians bleeding out over the increasing Trudummy taxes coming in 2019. And , we had six stewardesses fawning over us all the way over the pond. One did nothing but change my movie channels and fluff my pillow between feedings and another stood by and opened the bathroom door when I’d drank too much champagne. Obviously Canadians are getting poorer and rich Asians aren’t visiting for investment, tourism or otherwise. First Class is where the rubber hits the road as gas as buisness investment goes. I heard a CTV ‘ Power Panel’ of anointed “journalists crow about how Trudeau is doing great things. I think it’s American money backing this propaganda, because my view from 35000 ft is that Canada is sinking like the Titanic and the rich have already abandoned the Liberals.

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

There are no direct flights from Vancouver to Taipei that offer First Class cabins. Only Business Class. Not that there’s anything wrong with that, but if you’re trying to sound like a baller, it helps to be accurate.

(Formerly flew for one of the two national carriers based in TPE).

#140 BillyBob on 01.03.19 at 6:26 pm

#106 IHCTD9 on 01.03.19 at 9:19 am

I’ve been on a plane once in my life, I’d get by just fine without ’em, happy to see them disappear actually.

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

Now now, I make my living operating flying machines, how would you like it if I said “I’d get by just fine without heavy dozers, would be happy to see them all disappear?”

Yeah, I didn’t think so! :-)

(Incidentally I’d be lying if I said that, I love heavy machinery, try to operate anything people are foolish enough to allow me to get my hands on.)

#141 acdel on 01.03.19 at 6:37 pm

#88 Smoking Man

Interesting hypothesis.

Personally I have no fricken idea. Reading the article I thought that it might be something that you might be interested in being (part) smoking/JD drinker alien and all. :)

Although your opinion on attraction as opposed expansion is unique, who am I to say?? Yoda knows all!

What are your thoughts on dark matter?

#142 crowdedelevatorfartz on 01.03.19 at 7:00 pm

@#107 IHCTD9
““There are only nine meals between mankind and anarchy”

++++
Not bad but I think if you ever saw Ozzie bite the head off a bat…….you’d agree that anarchy was already here…..

#143 LivinLarge on 01.04.19 at 12:40 pm

I go away for half a year and come back to an exceptionally prescient article…well done Fearless Leader.

What caught my attention the most is your pointing out the terrible problem with financial/investment prognosticators everywhere. Using “best possible result” mathematical examples rather than boring old “real world” examples.

Using “max CPP” payment numbers to make a point borders on intentionally misleading readers IMO.

About this time last year, I was in constant arguments here regarding the long term value of RSP contributions. As some may recall, the “die early” scenario plays heavily into any calculation of relative RSP value since something like half of us will do just that.

IMO the traps inherent in RSP contributions simply out weigh the perceived value but as always someone else will adamantly assert that I am naive, foolish or both and they always use “best case” scenarios rather than real world examples to try and make their case.

So, hi all and a great bit of writing Fearless Leader.

#144 LivinLarge on 01.04.19 at 12:51 pm

Frank Blood @ #108. You need to understand that TFSA contributions are in after tax dollars and withdrawls are not taxable, not even a little. So, your question is essentially moot.

You start with less of a contribution into a TFSA yes but it grows tax free rather than tax deferred and isn’t subject to tax when taken out. That little investment product is easily the most lucrative creation of any Canadian government in history.