Night guy

DOUG  By Guest Blogger Doug Rowat

Jerry Seinfeld has a great routine where he talks about liking to stay up late. He enjoys being “night guy”. And the consequences the next day? That’s “morning guy’s” problem. Check it out here:

We’ve all engaged in this kind of thinking and there were probably more than a few of us who behaved like “night guy” after last Sunday’s Super Bowl, leaving “morning guy” to fend for himself. But Seinfeld’s bit actually has ramifications for the more serious subject of long-term financial planning. Planning successfully, of course, means envisioning your future self and recognizing that decisions made today have significant ramifications not only for tomorrow, but also for next year, next decade and so on.

Millennials, in particular, should pay more attention to morning guy. According to YCharts, 65% of US millennials ages 22–37 say that they’ll reach seven-figure wealth by age 45 or sooner. However, millennials don’t sufficiently save. According to the National Institute for Retirement Studies, more than two-thirds of millennials have nothing saved for retirement and 95% are not properly saving for retirement. So, millennials are living for the moment, expect a lot in the future, but aren’t doing enough now to help out their future selves. They assume future wealth but are leaving the actual logistics of achieving this to morning guy.

Most US working millennials have less than $20,000 saved for retirement

Source: National Institute for Retirement Studies

These ambitious wealth targets are partly a function of millennials witnessing the growing ranks of millionaires. Credit Suisse’s Global Wealth Report, for instance, highlights that the US added roughly 878,000 new millionaires last year. Millennials eyeball this data and think that ‘millionaire’ is an easily attainable goal. But it’s a tough goal and it requires discipline.

Change in number of millionaires by country 2017-8

Source: Credit Suisse

Now, millennials do many things right. For instance, they have high (94%) take-up rates for retirement plans sponsored by their employer, but overall they’re still not saving enough. The conclusions of the National Institute for Retirement Studies report were stark:

Sadly, even the iconic estimate of one million dollars in retirement savings may be off the mark. …If low rates of investment returns persist, Millennials will need to save more—much more—from their salaries for retirement.

When combining employer contributions with Millennials’ own contributions to their retirement accounts…the average working Millennial was able to save 10.1 percent of their salary. But, this is not enough. According to financial professionals, this generation should be saving at least 15% of their salary.

Now we can debate whether the world should be doing more for millennials—free education, forgiving student debt, lowering taxes, massages, drone-delivered Starbucks, etc.—but let’s assume for the moment that the world isn’t going to do anything more than it already does for them. What is needed for a millennial to independently help themselves reach that goal of US$1 million in wealth? (Btw, for some Canadian context, only 38% of Canadian millennials are putting money towards their retirement, according to a recent RBC retirement poll. So, the Canadian millennial saving situation is similar to the US’s in that more is needed.) If we take the midway point of that 22–37 age range (so, 29), and give this young person five grand in savings to start, to get to US$1 million by age 45, assuming a 6% annualized rate of return, this ambitious skinny-jean-wearer is going to have to sock way US$3,100/month.

A 29-year-old millennial would have to save VERY aggressively to reach a million bucks by age 45

Source: Ativainteractive

Now, obviously, this is a simplified financial scenario and doesn’t include other potential investments, inheritances, better future employment prospects, etc., but still, how realistic is the million-bucks-by-45 goal? Not very. So the first step is for millennials to moderate their expectations. Making money isn’t easy. By extending the timeframe out to age 65, the million-dollar target can be more realistically reached, requiring a more modest US$625/month in savings (see table below). Canadian millennials, incidentally, feel that they need C$917,000 in personal savings to retire comfortably, according to a 2018 CIBC poll, so this wealth level is also more achievable if a realistic timeframe is set.

However, if this particular millennial continues on a path of weak savings, putting away an average of only, say, $200/month then they will not come anywhere near their target—in Canadian or US dollars (see table below). So, at some point, a disciplined and more aggressive contribution plan must be put in place and sacrifices will need to be made. Night guy is going to HAVE to show some consideration for morning guy.

Wealth of a million bucks is attainable for millennials, but not by savings $200/month

Source: Ativainteractive

So, millennials, think of future-you. Don’t stay up late tonight (or travel excessively, drop 8 bucks on a soy chai latte, eat out a lot, buy a new car, etc.) expecting morning guy to fix the mess tomorrow. In other words, save more now. Night guy and morning guy need to work together.

So, that’s my advice to all you young people. Now get off my lawn.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

 

115 comments ↓

#1 crossbordershopper on 02.09.19 at 9:27 am

for the past 30 years or so, i have seen all these save a monthly amount, start early, compounding effect, and you can if you dont loose your job, get divcorced, get sick, etc. you should end up at retirement with a nice nest egg.
sure. you have to ask yourself though why? save for what? your retirement?
i have seen many many seniors, some have amassed a nice nestegg and most a little and many more with close to nothing. my take away from so many people i have personally met in my job this.
1) the happiest people are generally the people who have family around, regardless of money. i know a guy who sleeps on a couch worth a million, another has nothing, no real difference.
2) dont get sick, it will ruin everything you planned for.
3) the government will either take it from you if you have it, or will give you enough for a ham sandwich. old people dont eat much
4) your kids will have already lived most of their lives when you pass, giving them money or saving for the kids. well the kids are 45 years old its like Prince charles, 70 years old waiting for what to be king for a day?
5) you either go big and make big money and live life or you accept your place in this world and just get a job and go on occassional trips, have fun with kids when young, and watch your sports team.
Live life, dont save anything. not a penny thats my advice. same as my 13 year old daughter, why sacrafice today for potential enjoyment tomorrow. what if tomorrow never comes, well someone else will enjoy it. ultimate socialism.

#2 Shawn Allen on 02.09.19 at 9:33 am

Save now or pay later…

Choose your poison

Someone said we can all choose between two pains

We can choose between the pain of discipline now or the pain of regret later.

This of course applies to everything in life. And often the pain of discipline is not that bad or can even lead to the pleasure of satisfaction that comes with discipline. Regret later has basically no redeeming features.

#3 squished18 on 02.09.19 at 9:36 am

The whole idea of “retirement” is pretty outdated. At least in the sense that people who will soon be dead (boom-heads) think about it. Not advocating for “Night Guy” here, just that the language the financial services industry uses needs to change to reflect the reality of people looking for fulfilling careers that will last a lifetime. Jobs are things to escape through retirement anymore.

#4 SCD on 02.09.19 at 9:46 am

Very good post. Hopefully it will inspire some action. I like the way you presented the info. Thanks!

#5 armpit on 02.09.19 at 9:54 am

Just woke up after a late night… and look at what I’m reading

#6 I’m stupid on 02.09.19 at 9:57 am

1million in 35 years is equivalent to 500k with a 2% inflation rate. So I think a millennial will need to do much better than $625 a month.

I personally think that the best strategy for a young person is to aggressively save in their 20s and let time do all the heavy lifting. Live like a student until the major expenses come (kids, wife, dog, house). If a 20 year old can save 30k a year for 10 years the total @6% would be 3.6million at 65 without contributing another cent after 30. Much easier, let night guy do all the work so morning guy gets to sleep in.

#7 Contradiction on 02.09.19 at 10:08 am

You made a critical error by picking the wrong guy, because Jerry, THE NIGHT GUY, was no fool when it came to making loot or investing wisely. His net worth is well known to be about $950 million and climbing. I want to become a night guy like him!

#8 Real estate changed everything (and will again) on 02.09.19 at 10:21 am

The once in history run up on housing prices are no doubt to blame for much of the rethinking of how you save for retirement.

It made total sense. Buy a home, sit on your unproductive duff sipping lattes while your home appreciated 10% yoy and you will be pretty by 45.

Well, now that will surely change as home prices crater by 50% in Vancouver, and debt slaves still have to service their mortgage while watching their expected windfall inheritances evaporate.

I suggest for a reality check of where homes prices will settle, go play with TD’s mortgage affordability calculator.

https://tools.td.com/mortgage-affordability-calculator/

Real estate is about to change the game again. The next chapter is be productive or be fired.

#9 Russ on 02.09.19 at 10:39 am

crossbordershopper on 02.09.19 at 9:27 am


sure. you have to ask yourself though why? save for what? your retirement?

i have seen many many seniors, some have amassed a nice nestegg and most a little and many more with close to nothing. my take away from so many people i have personally met in my job this.

1) the happiest people are generally the people who have family around, regardless of money. i know a guy who sleeps on a couch worth a million, another has nothing, no real difference.

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

Wow. That’s an expensive couch!

My sofa is worth a lot less than that and it’s got a built in bed that pulls out.

#10 For those about to flop... on 02.09.19 at 10:51 am

Whatever your take is on with what’s going on in Vancouver real estate, here is one fact that might surprise a few people, such is the unevenness of the market place.

People are routinely losing the best part of a million dollars after buying on the Westside at the peak.

Meanwhile 10 kilometres away.

People are buying whole houses in East Vancouver for less money than the people lost by speculating on the Westside.

This has been Flop’s thought for the day…

M44BC

#11 Changeemall on 02.09.19 at 11:01 am

Our debt based fiat currency will not last for another 13 years. The debt super cycle will come apart by 2032.

Expect taxes to keep rising to service the interest on the ever growing national and provincial debt.

Ryan, you will still drive a Porsche but majority of others won’t.

1 million dollars is not much even today… Imagine 10 years from now.

#12 SmarterSquirrel on 02.09.19 at 11:05 am

The question to me isn’t one of how much do I need to save to have $1m when I retire. The real question is how much cash flow will I need in the future taking into account inflation, and how much do I need to save and invest every month between now and when I retire to be able to have that much cash available every year until I die at some unknown future date. I try to answer that question here https://smartersquirrel.com/how-much-do-you-need-to-retire

#13 For those about to flop... on 02.09.19 at 11:09 am

Robax, you might get some joy out of reading this recent howmuch article.

Gen X,I guess.

Although I like to define myself by how many bowls of ice-cream I have consumed…

M44BC

“In Debt and Scared of Risk: Millennials Compared to Gen Xers and Baby Boomers.

Imagine taking a snapshot in time of Baby Boomers, Gen Xers and Millennials just as each generation was entering the workforce. On average, how would the total assets and debts compare? That’s the premise behind our newest visualization.

We took a deep dive into some recent Federal Reserve data to investigate the differences in debt and assets between Millennials, Gen Xers and Baby Boomers. First off, we broke down the types of assets each generation holds in aggregate, whether that’s equity in a home, other financial assets like stocks, business assets, equity in a vehicle and other real estate. We then compared the total debt each generation carries on average in red across the bottom, letting you easily get an idea for the relative balance of assets and income for successive generations.

It’s important to bear in mind researchers have adjusted these numbers for inflation. This lets us make a fair comparison, for example, of home values between several different decades. Interestingly enough, Millennials in 2016 on average had more equity in their homes compared to Baby Boomers in 1989, but much less than Gen Xers in 2001. In other words, despite entering the job market right after the housing crash and their reputation for delaying when they purchase a home for the first time, Millennials are actually doing just fine as homeowners.

Things get even more interesting in other asset classes. Millennials are much better savers than people from previous generations, averaging $18,800 in the bank compared to $16,800 for Gen Xers and a measly $6,600 for Baby Boomers. Part of the explanation for why is that previous generations tended to grow their wealth in the form of small businesses. In fact, according to the Small Business Administration, young people today are several times less likely to start their own companies compared to other generations. That’s because the Great Recession discouraged risk taking in the minds of many Millennials, forcing them to be more conservative with their money.

That being said, the total debt loads across each generation tell an interesting story too. Cars have gotten much more expensive, forcing people to put more of their paychecks toward building equity in a vehicle than ever before. Lots of Millennials also take out massive student loansto fund higher education. And that’s because states are routinely decreasing allocations for public institutions, not to mention the increases to tuition at private schools. College is still seen as the best way to improve future earning potential, even if lots of college grads end up in jobs that don’t require a degree. The debt load for Millennials is therefore higher at $84,600 than for Gen Xers ($79,400) and substantially more than Baby Boomers ($59,300).”

Click on link for full Visualization.

https://howmuch.net/articles/assets-debt-3-generations

#14 Borden Renter on 02.09.19 at 11:11 am

A ‘millenial’… Hey! That’s me!

While I do enjoy a good avocado on toast (with cream cheese), I make my own. Same goes for my fancy coffee, which I grind fresh every morning. Beats waiting in line to pay through the nose for garbage, like a sucker.

I suppose I’m one of the rare ones who actually save and invest. I see a lot of people my age (35) splurging on a lot of items they don’t need: expensive trucks, motorized toys, several vacations a year to far flung places, etc. I still travel twice a year, I just do it cheaply.

Living near to the mess that is the GTA, I’m lucky enough to have found a good renting situation that’s cheap, clean, and isn’t a basement. The rest goes directly into savings every two weeks, and some months I hit 35%. The Sun Life calculator says I can retire before 50, but I will likely stay involved and active well into my 60’s, but that’s my choice… Unless some sort of calamity strikes before then. Either way, I’m saving like I can’t rely on my sweet government pension. I don’t trust them.

What amazes me is the lack of financial literacy amongst my peers, or even my parents. Once I start using basic investment terminology with them: right over their heads. The plus side is that they think I’m smart, the downside are the long-winded explanations. How do you tell someone that what they are spending money on is stupid, and that they will struggle later in life because of it, without hurting their feelings?

#15 Gramma needs to surf on 02.09.19 at 11:26 am

Early to bed, early to rise makes a man healthy, wealthy and wise

but boring boring boring boring… .. the one with the biggest pile of beans at the end is the loser…. party on… surf the waves of life

#16 Oilaphant on 02.09.19 at 11:49 am

$1000000 36 years from now ain’t gonna be much, Doug. I can’t believe people are still slogging this kind of advice to Mils in this day and age. The problem is structural and only someone like Bernie or AOC is gonna solve it. I’m older but I can see now the problem is the boomers, bubbles, the 1%, and taxes. If you don’t like the politics of it then read Picketty instead. Oh yeah, and 36 years from now what kind of state will the environment be in to spend a million? Think that’ll buy safety and security for a frail 65 year old?

#17 Doug Rowat on 02.09.19 at 11:56 am

#14 Borden Renter on 02.09.19 at 11:11 am

A ‘millenial’… Hey! That’s me!

While I do enjoy a good avocado on toast (with cream cheese), I make my own.

Clever millennials would subsidize their massive avocado consumption via Calavo Growers. (Dear Compliance Dept., I am, of course, joking.)

–Doug

#18 LP on 02.09.19 at 12:05 pm

#13 For those about to flop… on 02.09.19 at 11:09 am

Although I like to define myself by how many bowls of ice-cream I have consumed…
*******************************

And there, in a nutshell, is the difference between forty something and seventy something. You think of the bowls of ice cream you’ve had to date; I think of how few there are in my future. One day you’ll know what I mean.

#19 Doug Rowat on 02.09.19 at 12:08 pm

#6 I’m stupid on 02.09.19 at 9:57 am

Live like a student until the major expenses come (kids, wife, dog, house). If a 20 year old can save 30k a year for 10 years…

$30k/year at 20? I want millennials to save more, not lead a life of crime.

–Doug

#20 Adrian on 02.09.19 at 12:12 pm

Good post. I agree with most, however I’d say that the $8 latte isn’t the reason for low savings/investment. Elizabeth Warren pointed out that in good times it’s probably OK to splurge on some luxury. It’s really the long term, inescapable, financial commitments that weigh people down, ie mortgages. So save, invest, have cash flow, and keep housing costs as low as possible!!!

#21 Dave on 02.09.19 at 12:34 pm

The next generation doesnt want to work hard, live for the day, and want mom and dad to pay for everything.
IPhone makes millions of these idiots who upgrade their phone everytime a new version comes out.
Their long term financial planning foundation is based on inheritance. Dead parents = living the good life

#22 Barb on 02.09.19 at 12:46 pm

“…Now we can debate whether the world should be doing more for millennials…”

Absolutely not!
We oldsters paid for our education, food, transportation and housing with hard-earned dollars. We went where the jobs were. Nor were we “sponsored” by any agency or group. In addition, my mother sewed all my clothes. Dinner out? Maybe once a year.

After Mom passed last year at the age of 94, I discovered a box of rags in her closet. In her life she never bought paper towels, using old towels/sheets, hemmed on her sewing machine, for household cleaning.

How soon people forget the adage: Don’t feed wild animals, as they become dependent on handouts and will become unable to care for themselves.

Teach your kids a TRUE skill: frugality.
But we have to first learn it ourselves.

#23 AK on 02.09.19 at 12:52 pm

“Millennials, in particular, should pay more attention to morning guy.”
=====================================

They should pay more attention, but instead, they will be electing socialists like Alexandria Ocasio-Cortez. And of course, you know the rest.

#24 Martin9999 on 02.09.19 at 1:03 pm

true story.

My uncle and my aunt saved for retirement all their entire life (to the point on not buying a hotdog on the stand because was 25cents pricier)

sadly to say, my dear uncle got diagnosed with cancer around a year a go, and just passed on december at the age of 68.

This blog is magnificiently entertaining and is still running the 1994 ideas.

The best assets that someone can have are not dogs or investments but children and a great positive cash flow business.

#25 Ponzius Pilatus on 02.09.19 at 1:07 pm

The stat on millionaires is not meaningful.
Most homeowners the lower mainland and Toronto fall under that category.
I know many of them.
All the net worth is tied up in house.
Living paycheck to paycheck and struggling to pay for hockey for the kids.
Couches from IKEA.
One of them just died recently. Never made it to retirement.
And the kids are suing each other over the inheritance.

#26 Doc on 02.09.19 at 1:11 pm

I am very grateful to younger me for saving some money. Older me (68) is enjoying the first full year of freedom from the stress of being responsible me and serving others. Now lets flesh out young Ryans thesis. One million will generate 10 K in annual expenses (1%) to the porsche driving financial management dudes and their back office minions. A necessary evil unless you want to waste precious time staring at screens.

If you take 3500 month out in retirement (4.2% annual) you need 5.2% annual growth to keep your capital. Not likely nowadays. The Vanguard Group, Inc. has an easy to use monte carlo multiple simulation software online calculator that predicts the percentage likelihood that various %’s of stocks, bonds and cash will last for set times.

If one has 1mill. and withdraws a total of 52K annually as in the example above, with 60% stocks, 35% bonds and 5% cash, (our bearded ones recommendation) it gives a 91% chance your money will last 20 years.

Younger selves take note. 42K isn’t a lot of annual income. In my case and I’m probably Mr. Average, CPP for two plus OAS for two adds another 30K per year. Living on 6K per month is decent but far from decadent for an old couple. Young Doug is trying to help-listen up!. And plant a garden. You might attract a glengarry girl.

#27 Dogman01 on 02.09.19 at 1:11 pm

1 crossbordershopper on 02.09.19 at 9:27 am
I will echo these Points:

2) don’t get sick, it will ruin everything you planned for.
Don’t let your work make you sick, Office Body will catch up and quite possibly kill you; manifests in late 40’s and 50’s, where you feel less energy and can encounter greater work demands on your time.

4) your kids will have already lived most of their lives when you pass, giving them money or saving for the kids. well the kids are 45 years old it’s like Prince Charles, 70 years old waiting for what to be king for a day?
Yep – my old man may leave me something but I will be north of 55 and will not need it as much and the impact will be significantly lower than If a hand was given instead at an earlier and more critical path time. Our economy is changing, the gap between winners and losers is increasing, the middle class was a 20th century post war phenomena and is rapidly disappearing. I think a hand up to your kids will be more and more necessary to keep them to the winner side of the line.

5) you either go big and make big money and live life or you accept your place in this world and just get a job and go on occasional trips, have fun with kids when young, and watch your sports team.
In most cases where people are in the hierarchy has a lot of dependence on where they started from. Merit can still create a fortune but Inheritance is the common path and often a big part of the picture.

Have a read of this article: The meaning of life in a world without work.

https://www.theguardian.com/technology/2017/may/08/virtual-reality-religion-robots-sapiens-book

#28 Ponzius Pilatus on 02.09.19 at 1:13 pm

Night guy, morning guy.
Wolf, pigs. Cricket, ant.
The story is ancient.
It’s in the DNA.
Got two sons.
One is a miser, the other a spender.
Me, in the middle.
Not much you can do.
Just hope that it works out.

#29 Damifino on 02.09.19 at 1:18 pm

#3 squished18

The whole idea of “retirement” is pretty outdated. At least in the sense that people who will soon be dead (boom-heads) think about it. [….] the language the financial services industry uses needs to change to reflect the reality of people looking for fulfilling careers that will last a lifetime.
————————————–

I’m a ‘boom-head’ who will soon be dead (nice rhyme). I’d like to make some comments before I go, then y’all can have at ‘er:

Doug Rowat is younger fellow (in my view) who has what I assume to be a fulfilling career. And yet, he sees clearly the growing importance of preparing for one’s future cash flow needs, changes in life, outlook and attitude. Will Doug still be a portfolio manager in his late eighties? Will he still want to be? Dunno, ask Doug.

I had a fulfilling career. The best part of it lasted from 1983 to 2007. ‘Fulfilling’ careers are made possible by capital investors that hire skilled employees at the specific time they need them until other forces take over: buyouts, downsizing, younger workers coming along willing to do more for less. That kind of thing. The the employer is terribly sorry, but “here’s two weeks pay and you’ll you need go with this uniformed fellow who will see you off the premises”.

In 2007 I was in a great position to retire. A lifetime of savings, some stock options, and yes, the sale real estate got me there. One day, the company held a general meeting to announce software forcing everyone to keep track of their time in ten minute increments.

It was a pointless nuisance dictated by head office to slow productive employees and be misused by slackers. Gobs of useless data would be collected, stored and never seen again.

It was on that day a great cloud lifted. I’d been flirting with the idea of retirement and the company did me a favor by supplying the final straw. That was 12 years ago. I spent one weekend wondering if I’d made a mistake. Then, I never looked back.

I have more capital now than I did on the day I retried. That is thanks to guys like Doug who know what capital is and how to invest and protect it. It spins off more than I need to rent and live comfortably in silly downtown Vancouver where prices are insane, McJobs are plentiful and wages are pathetic.

I get messages daily from linked-in. It seems my skill set is still in high demand. Rewarding jobs exist for me everywhere throughout our great country. That does my heart good since I own many pieces of the companies that provide those jobs. They offer ‘fulfilling careers’ to those who wish to toil in the enterprises of others until their dying day.

They have my gratitude.

#30 martin9999 on 02.09.19 at 1:21 pm

To Doug:

Advising not to drop eight dollars for a latte In order to save for that million dollar, Was the best!!

with all due the respect for the blog and you , Your mental state of mind as a financial advisor Needs help.

But hey I can understand it’s not easy to come with new stuff every day, so you’re still doing great and the specially free of charge . thx

#31 NFN_NLN on 02.09.19 at 1:31 pm

Garth, how do you feel about Trump putting his people first? Would/Should Trudeau do the same!

https://youtu.be/OSf_65QPu54

#32 Blair on 02.09.19 at 1:42 pm

Can you elaborate on what you mean by “If low rates of investment returns persists”. Thanks.

#33 JSS on 02.09.19 at 1:50 pm

Continually low interest rates, and Facebook are responsible for a lot of mess people are in.

—-

To add…finding another job past age 40 due to job loss, is really tough. At age 50? Pretty close to impossible. Millenials (and others) need to factor in job loss, rising property taxes, utilities, insurance rates, stagnant salaries, and potentially dead end careers into their retirement calculations. Maybe the annual rate of return should be 5%? Or milenials should invest more aggressively – say 90% equities, and take the risk.

Also…Make sure to pick a good spouse, and a good career wisely.

#34 TalkingPie on 02.09.19 at 1:55 pm

I find it interesting that articles like this usually bring out a raft of commentators who claim how impossible it is to save. It’s not.

I’m a millennial, flight attendant as occupation, and until my girlfriend and I bought a house this summer I was banking about 45% of my take home pay, plus pension contributions, while living a perfectly fulfilling life: comfortable apartment in a trendy neighbourhood, old convertible in the garage, a nice trip or two every year with the girlfriend, studying part-time for my Management degree.

Even now with a house I’d still be putting aside 20% if it weren’t for the fact that I decided to invest in a different way by way of learning to become a pilot. The little things like spending $8 a day on coffee and going out to eat a few times a week do matter when you add up all these little habits. The two other important factors: the type of spouse you choose and where you choose to live.

For all you naysayers saying it’s impossible to follow Doug’s advice, I suggest you instead try harder to look at ways it can be done rather than coming up with reasons why it can’t.

#35 Penny Henny on 02.09.19 at 1:58 pm

So that’s where the saying comes from.
No more Mr. Night guy.

#36 For those about to flop... on 02.09.19 at 2:25 pm

LP
#13 For those about to flop… on 02.09.19 at 11:09 am

Although I like to define myself by how many bowls of ice-cream I have consumed…
*******************************

And there, in a nutshell, is the difference between forty something and seventy something. You think of the bowls of ice cream you’ve had to date; I think of how few there are in my future. One day you’ll know what I mean.

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

Hey LP ,how you been doin’?

I can only refer to an old Tasmanian saying.

A bowl of ice-cream in the belly is worth two in the bucket…

M44BC

#37 Ya right on 02.09.19 at 2:39 pm

Pull up their bootstraps too.

#38 Lost...but not leased on 02.09.19 at 2:59 pm

Re Millenials.

My take is that they will inherit, if not create, a deflationary cycle. This will be due to a combinations of political brainwashing, hard core reality etc.

They will not be interested in SFH, but adapt to life in high – density quasi jail cells called “condos”.

The are already voting with their wallets….to the detriment of dairy and beef farmers aka going vegan. Many US farmers are going bankrupt based on low commodity prices, interest rate etc. Canada can’t be far behind.

The auto industry will take a major hit. Millenials will use public transit more and more. Millenials will exacerbate the low birth rate, which will giver the gov’t the green light to increase immigration.

Increased AI will reduce jobs via automation…

Wrinkly boomers ( sorry Garth ) won’t be able to give away their Harleys(or collectable cars)…as boomers chose electric vehicles etc.

$ 1 million dollars won’t mean squat.

Mind you, Gov’ts have had the aforementioned planned for decades. Maybe review Aldous Huxley and his predictions.

#39 Dolce Vita on 02.09.19 at 3:02 pm

Good advice.

Ignored by every generation up until now and so will they.

Still, admirable you tried.

Clearly, you get your coffee or tea at Starbucks were you can virtue signal by what you buy (“drop 8 bucks on a soy chai latte”).

If you ordered that in Italia they’d look at you as if your were an alien Grey and be repulsed at the thought of drinking a chemical brew such as that (notwithstanding, ask you to leave the country from the affront to all that is good and noble about espresso – which we invented how to make).

I liked the “lawn” comment, THAT was good (bitter, but good).

#40 Doug Rowat on 02.09.19 at 3:13 pm

#34 TalkingPie on 02.09.19 at 1:55 pm

I find it interesting that articles like this usually bring out a raft of commentators who claim how impossible it is to save. It’s not.

—-

Correct. TalkingPie is a MorningGuy.

—Doug

#41 For those about to flop... on 02.09.19 at 3:20 pm

CONFIRMED PINK SNOW.

Gonna try and find time to do confirmation session, I will try and keep the colour commentary short.

If not interested just scroll.

Some people are…

M44BC

1429 Hope Rd,North Vancouver

Paid 1.80 October 2017

Sold 1.68 December 2018

Originally asking 1.98

220k loss after expenses on a fairly new house.

https://www.zolo.ca/north-vancouver-real-estate/1429-hope-road

https://www.bcassessment.ca/Property/Info/RDAwMDEwTjFGVA==

#42 Lost...but not leased on 02.09.19 at 3:26 pm

How bad can it get ?

We are arranging to meet a family member who is turning 80 soon. It is getting difficult to arrange as he has stated he needs to work 5 days a week to keep his health benefits(he works as a commissionaire).

In 1987, he was playing the stock market and announced he was going to retire. Has a university degree and had a Gov’t job. Shortly after,as we can recall, the market tanked..he never recovered.

The market tanked for about a day, and speedily recovered. Tell him to get a better story. – Garth

#43 Dolce Vita on 02.09.19 at 3:44 pm

The market tanked for about a day, and speedily recovered. Tell him to get a better story. – Garth

Speaking of bitter,

OUCH.

That was Morning Guy masquerading as 3:26 PM Central Time Guy.

Garth, everybody has a hurt me story. You just nod and think to yourself what you wrote.

At least you have the Cojones to say so and after all, it is your Blog.

#44 For those about to flop... on 02.09.19 at 3:53 pm

CONFIRMED PINK SNOW.

Fairly similar numbers to the last post.

11140 Granville Avenue, Richmond

paid 1.8 July 2016

Sold 1.69 October 2018

Originally asking 2.48

Different jurisdiction, same result,200k loss…

M44BC

May 30:$2,488,000
Aug 3: $1,588,000
Change: – 900000.00 -36%

https://www.rew.ca/insights/379418/11140-granville-avenue-richmond-bc
https://www.zolo.ca/richmond-real-estate/11140-granville-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDA1V0haVA==

#45 my old professor on 02.09.19 at 4:20 pm

He always told me in private debate, while having dinner at his home years later with his British accent. Me boy, you will never find the truth in the daylight sun until you remove the mask over the matter of interest. One can only explore and discover the truth hidden by the darkness of the night because there you will find it with certainty. He was right!

#46 espressobob on 02.09.19 at 4:29 pm

You never know what life will throw your way. Age is irrelevant. Having a good stash of dough invested acts as a safety net and provides peace of mind when the financial shit hits the fan occasionally.

Just a thought. More reason not to be the morning guy. Good post Doug!

#47 Lost...but not leased on 02.09.19 at 4:31 pm

Re #42 and Garth’s comment..

Garth: Apparently the party was highly leveraged (aka mortgage on house) so couldn’t wait it out.

Regardless…he ain’t the only one, with more to follow in near future.

A highly leveraged person gambling with individual stocks doesn’t get to moan about it 30 years later. – Garth

#48 not so liquid in calgary on 02.09.19 at 4:43 pm

@ crossbordershopper on 02.09.19 at 9:27 am

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

Those who understand compounding earn it… those who don’t, pay it

#49 Borden Renter on 02.09.19 at 4:48 pm

“Clever millennials would subsidize their massive avocado consumption via Calavo Growers. (Dear Compliance Dept., I am, of course, joking.)

–Doug”

I’m not sure how many avocados I could eat per day to help bounce that stock price back, but I don’t mind trying. They go down well in smoothie form.

You mentioned investment returns lagging for the foreseeable future, how long do you think the funk will last?

#50 Reality is stark on 02.09.19 at 4:53 pm

And now the truth.
As housing tanks government revenue tanks.
They need more money.
They need to claw back your OAS by lowering the threshold. You make more than $40,000 no OAS for you (pension Nazi to use Seinfeld euphemism).
If you think this isn’t going to happen you live under a rock. The incentive to save will be compromised by government policy. Do not underestimate the voting power of millennials. They know how to get their parents money, they sure as hell will find a way to get your money as well.
More and more families are comprised where only one child was conceived and that child is used to being spoiled and the centre of attention, thus the spike in malignant narcissism in modern western society.
If you made money during the government created housing boom, the government expects to claw that all back.
The millennials will get their subsidies. Watch your property taxes skyrocket.

#51 Lost...but not leased on 02.09.19 at 4:54 pm

Flop..

Re SFH under $1 million…

Savvy buyers should follow this trend..as buyers drive up prices of the low end of strata..as SFH experiences a “correction”.

Otherwise they will pay dearly for overpriced strata and whine about missing SFH trend.

#52 For those about to flop... on 02.09.19 at 5:37 pm

CONFIRMED PINK SNOW.

Next step up the ladder in Richmond.

9080 Pinewell Cres,Richmond.

Paid 2.9 May 2017

Sold 2.6 November 2018

Originally asking 3.58

Assessment 2.55 down from 2.66

425k punch to the pineapple…

M44BC

https://www.rew.ca/insights/392324/9080-pinewell-crescent-richmond-bc

https://www.zolo.ca/richmond-real-estate/9080-pinewell-crescent

https://www.bcassessment.ca/Property/Info/QTAwMDA1V1c3Ug==

Just to revisit my statement from this morning,here is some fresh evidence.

Someone paid 925k for this.

https://www.zolo.ca/vancouver-real-estate/1578-east-22nd-avenue

Someone lost 925k on this.

https://www.zolo.ca/vancouver-real-estate/3936-west-32nd-avenue

#53 Another Deckchair on 02.09.19 at 5:51 pm

@34 TalkingPie and other youngsters of the same mindset:

A pat on the back to you. You have not been sucked in like many (the majority) of people to the “must spend and consume stuff to be happy” attitude.

– Yes, as you have done – you can get used to any lifestyle; if you choose a decadent/expensive lifestyle, you loose.

– Yes, if you can do work you enjoy, what’s wrong with that? (being a pilot would be really cool – go for it!) Everyone needs a purpose and social interaction; work can be really good at providing that.

– What’s wrong with saving 50% plus of the household income? We do it. It (in hindsight) was incredibly easy to do, – decide what was important every day of life, and, in our case $$ was not needed in large quantities for love and happiness.

TalkingPie – sounds like you’ve also found a set of guidelines that gives you and your partner great enjoyment. You are rich beyond belief. You both are incredibly lucky people. You have my upmost respect.

#54 For those about to flop... on 02.09.19 at 6:00 pm

CONFIRMED PINK SNOW.

Let’s have a look at what happened to a house that is probably approaching mid-market level in Surrey.

The details …

5856 Kilkee dr,Surrey

Paid 1.3 May 2017

Sold 1.2 November 2018

Assessment 1.25

I don’t think that things have gotten anywhere near as messy in Surrey as they have in Vancouver and The North Shore.

Probably next level down from Burnaby and Richmond too.

Didn’t stop these guys from taking a 170k kick to the kitkat…

M44BC

https://www.bcassessment.ca/Property/Info/QTAwMDA3NzhSRg==

https://www.rew.ca/insights/480339/5856-kilkee-drive-surrey-bc

https://www.zolo.ca/surrey-real-estate/5856-kilkee-drive

#55 BobC on 02.09.19 at 6:16 pm

You can’t get rich on wages. Build your own business to sell.
Build your own dream or someone will hire you to build theirs.

#56 Remembrancer on 02.09.19 at 6:18 pm

#3 squished18 on 02.09.19 at 9:36 am

Fine, call it a financial air bag rather then a retirement fund. Life happens… Lets see what 60 year old you thinks…

There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened – Jim Lovell

#57 Leanne on 02.09.19 at 6:42 pm

I just don’t understand why a lot of these posts directed to millennials have to be so patronizing. The information is helpful, but the tone is unnecessary.

#58 earthboundmisfit on 02.09.19 at 6:42 pm

Re: The Photo: Came across the term “narcissistie” today. Much more descriptive than “selfie”.

#59 Ace Goodheart on 02.09.19 at 6:52 pm

RE: #42 Lost…but not leased on 02.09.19 at 3:26 pm

“In 1987, he was playing the stock market and announced he was going to retire. Has a university degree and had a Gov’t job. Shortly after,as we can recall, the market tanked..he never recovered.”

“playing the stock market” sounds like amateur hour.

What was he doing? Buying and selling? Did he sell at the bottom and then watch stuff climb up again, helpless as he already lost all his money?

Just in case everyone here was not already here the last time I said this:

Buying stocks involves the following principle:

“Own the means of production, of the products consumed by the masses”.

Owning means not selling. So you don’t “play the market”. You buy the means of production, of the products being consumed by everyone, and then you keep it.

Which leads to the next question, “when should I buy”?

Answer is simple: When everyone else is selling. Stock prices are high when everyone else is buying, low when everyone else is selling. You want to get a good deal on the means of production of the products consumed by the masses, so wait until everyone is dumping their equities for garage sale prices, and buy in. Then you just keep what you bought.

“You can’t play a market”.

Well, you can’t. That involves timing a market, which is widely held to be impossible. Timing a market is like predicting which number the ball on the roulette wheel will land on. It is just a game, a guess. You can’t predict it. If you are gambling, go to a casino. Purchasing shares of companies on public markets is not gambling. You are in the wrong place.

What to do once you have bought the means of production, of the products consumed by the masses?

Keep them. You should operate on the principle, when buying equities, that the markets may close tomorrow and not open for 15 years. So you would be stuck with what you have, unable to sell. If this bothers you, then you should not be buying.

When to buy? Be greedy when others are fearful, fearful when others are greedy. When equities are on a tear, buy bonds. They will be cheap (equities are usually on a tear on the tail end of a bear market when interest rates are still low, the economy is kick starting and bond prices are out of whack with the cost of money).

Bottom line is, in order to make money, a company has to sell stuff that everyone can afford. Every person has to want, and be able to afford to buy, the products on sale.

Take McDonalds for example. Who cannot afford to eat there? Answer? No one. Their stock has doubled in value over the last five years, and will double again. They are the means of production, of the products consumed by the masses. The product is fast food. Everyone can afford it. It costs under $15.00 to get a meal there and you can get your meal in about 5 minutes.

Don’t go “high end”. There are 1% of rich people in the world. Everyone else is poor. If you are selling to the rich, you are ignoring 99% of your possible target market. This is fatal to many operations. As soon as they go high end, they falter and collapse. Restaurants are particularly vulnerable to this terminal disease. Followed by residential real estate providers, hotels and vacation services. Never, ever, ever restrict your sales to the 1%.

You can advertise that you sell to the 1%, and maybe you do, but if you do not also offer products that are affordable to the other 99%, your business will fail.

The exception to this rule for some reason is expensive women’s handbags. Who knew? (Hermes New York?).

Own the means of production, of the products consumed by the masses. Simplest way of making money. Hands down.

#60 Phylis on 02.09.19 at 6:57 pm

… scm has gone out for the night….

#61 Post on 02.09.19 at 7:24 pm

Doug, do you guys ever recommend individual stocks instead of just etf’s for your clients portfolios?

#62 Stan Brooks on 02.09.19 at 7:33 pm

#34 TalkingPie on 02.09.19 at 1:55 pm

How about kids, TalkingPie, how about kids?

Is there dough for that? By the sound of it there isn’t.
I guess the house is more important for you.

I am sure there will be tons of quality immigrants with kids coming to this country who would bring/raise some on your behalf/sarcasm off.

#63 akashic record on 02.09.19 at 7:55 pm

Morning – Night: the two makes up the day.
Inseparable from each other.
So are morning guy and night guy.
Just the way how everything we know was created.
Don’t sweat much to fight it.
Learn, experience, whichever role you got to explore.

#64 Ronaldo on 02.09.19 at 8:08 pm

1) the happiest people are generally the people who have family around, regardless of money. i know a guy who sleeps on a couch worth a million, another has nothing, no real difference.
——————————————————————
Wow. That’s an expensive couch.

#65 rupinder on 02.09.19 at 8:25 pm

What a boring blog entry.. plz try harder

#66 Keith in Rio on 02.09.19 at 8:34 pm

How can millenials, or anyone else for that matter, save any money when they are taxed and user fee’d to death to support those who want something for nothing ?

Governments, Quebec corporations, illegal immigrants, refugees, civil service employees, politicians, et al.

How can millenials, or anyone else for that matter, save any money when they are screwed by banksters, corporations, governments and anyone else who views the consumer as a cash cow ?

Want me to keep going with this scribe ?

#67 not 1st on 02.09.19 at 8:51 pm

#55 BobC on 02.09.19 at 6:16 pm
—-
Have you tried starting a business in Canada? We are not really a business friendly country hence all the people dreaming for a govt job. Entrepreneurs move to the US to make their fortunes.

#68 Baby Boomer retired on a Gulf Island on 02.09.19 at 8:53 pm

Hi Doug

Best column ever! You have learned to write like Garth – maybe even better.

The millennials are screwed.

Let them eat cake.

#69 Ustabe on 02.09.19 at 9:40 pm

You can’t get rich on wages. Build your own business to sell.
Build your own dream or someone will hire you to build theirs.

Could not agree more.

When I first began commenting here the topic of the day was side gigs. My contribution to that convo was laundromats.

I sold my last one probably 20 years ago but they took me all through university and the first decade of adult work.

I had reason to visit the city and the person I sold to this past summer. He still has it despite being firmly into a rock solid career in water works management for a large regional district.

It now looks more like a Starbucks than a laundromat but the point is they maybe don’t make a million like selling a start up nor do they have cachet like inventing herbal flavoured/infused toothpaste but if you are working on the office body and pulling down $90,000 why not take on something that takes a few hours a week to own and makes you a solid $20-30,000 a year? Clear, after taxes.

You don’t run it, you own it. Most people who buy these things run them…and that is all the vision they have.

clean, play place for kids (including the kids of the single mom’s on welfare you hire to work in it), always working machines, always well lit, always open. Pay weekly, pay cash if it helps (but be smart and quiet about that for both her and you).

You let the help keep anything they can earn via fluff and fold or coffee/snack sales as long as they bring the coffee machine and supplies.

The fellow referenced above subleases a section to a seamstress who does repairs and darning, etc while you do your wash and she pays just shy of half his lease.

ETC. If you can’t figure a way to lever yourself out of wage slave work at least augment it with something you can control.

I know an accountant with a large practice, offices, the whole thing. He owns a couple of car wand wash places as well as a laundromat. 1 employee looks after all three spots. He is well able to tell pain in the bass clients to take a hike.

Or spend your life bitching and moaning about T2, socialism, each other…your choice.

#70 Fish on 02.09.19 at 9:51 pm

Your special 2019 year-ahead horoscope: Jupiter leads the way to a year of adventure and fulfillment

https://www.cbc.ca/life/culture/your-special-2019-year-ahead-horoscope-jupiter-leads-the-way-to-a-year-of-adventure-and-fulfillment-1.4953021

#71 ExCanuk on 02.09.19 at 10:04 pm

#31 Trump puts America (his people) first because that’s what a good president is meant to do.

#72 -=jwk=- on 02.09.19 at 10:23 pm

@21 Dave
The next generation doesnt want to work hard, live for the day, and want mom and dad to pay for everything.

said every generation ever, and they were all wrong

@#22 Barb
Absolutely not!
We oldsters paid for our education, food, transportation and housing with hard-earned dollars.

No you didn’t, you voted in governments who borrowed money to pay for those things. Guess who has to pay that money back? And shall we talk about the healthcare you didn’t come anywhere close to paying for either?

#73 Doug Rowat on 02.09.19 at 10:42 pm

#67 Keith in Rio on 02.09.19 at 8:34 pm

How can millenials, or anyone else for that matter, save any money when they are taxed and user fee’d to death to support those who want something for nothing ?

Taxation isn’t going away. And you think it’s user fees that are hindering millennials’ retirement plans? The point of the blog, as I clearly laid out, wasn’t to rant against real or perceived injustices (which won’t be fixed anyways), but to establish what millennials actually need to do themselves to reach the goals that they’ve set…for themselves.

As I note, it’s the goals that may need to be adjusted.

–Doug

#74 NoName on 02.09.19 at 11:19 pm

#106 Remembrancer on 02.04.19 at 12:05 pm
#103 NoName on 02.04.19 at 11:38 am
I kind of knew number will be big but i didn’t except to be this big

https://www.cbsnews.com/news/copmanies-spent-record-1-trillion-buying-back-their-own-stock-this-year/
———————————————————-
Then there the ones borrowing to do buybacks…

There are two way to look at buybacks. This due explains it nicely.
20min long

https://www.youtube.com/watch?v=PeChOugZl3A

#75 Ustabe on 02.10.19 at 12:45 am

#72 ExCanuk on 02.09.19 at 10:04 pm

#31 Trump puts America (his people) first because that’s what a good president is meant to do.

Trump is a poor man’s idea of a rich man.
He is a weak man’s idea of a strong man.
He is a stupid man’s idea of a smart man.

The only people he is looking after are himself, his family and those who buy his friendship.

That this is not blatantly obvious to so many, especially in Canada, is a telling symptom of a general lack of critical thought that saddens me to tell the truth.

The only thing I know for certain is the US Judicial System grinds on and eventually truth will come.

#76 Smoking Man on 02.10.19 at 12:49 am

The most lucrative game for the house in Vegas is Mississippi stud.

It robs almost everyone but me. Remember dogs I learned to code. I built simulators. Got this shit down to a science.

Are you looking for a seminars where I charge a fee for how I do it.

People that can’t do teach. I do and keeping it to myself.
I’m Toronto first week in March buy me a beer and and I may give you tip.

I’m offered Free weeks at all Vegas properties. 2000 bucks in free slot play which wifee poo pisses away.

Buy I stay at the Flamingo they love my dogs. And I never play Mississippi stud there.

Dont want to put my buddy and host on the shit list.

#77 tkid on 02.10.19 at 1:27 am

There are plenty of videos of little old ladies on youtube talking about how they try to stretch their Social Security (one went dumpster diving for food and fell ill afterwards) if anyone wants to see what happens if you don’t put some money aside.

#78 Ponzius Pilatus on 02.10.19 at 3:05 am

#72 ExCanuk on 02.09.19 at 10:04 pm
#31 Trump puts America (his people) first because that’s what a good president is meant to do.
————–
Hitler did the same thing.
How did that turn out?

#79 Toronto_CA on 02.10.19 at 4:49 am

I always find most of those formulas for how much you’re meant to have saved useless for my own calculations, as my income has been extremely volatile (in a good way).

Like from the Millionaire Next Door, it is almost impossible to be a prolific saver at a young age if your income has spiked in a recent year. And an old person it says is a super saver even if they haven’t really.

My own income is about roughly 4x what it was ten years ago $75,000 versus ~$280k now, and I saved a good amount in my late 20s/early 30s, but if I take a measure of how much I saved versus my current income it looks pathetic. And if in my 50s I’m making 4x what I do now, how would I have saved enough to hit that 8x or 10x income retirement target?

I guess all we can do is spend less than we earn, live life with a mindset of enjoying today while still putting something aside for the future. If I had to choose though as my income didn’t allow me to both live for today and save for tomorrow, I’d pick today as it is a certainty, while tomorrow may never come.

#80 Gravy Train on 02.10.19 at 6:56 am

#77 Smoking Man on 02.10.19 at 12:49 am
“Are you looking for a seminar where I charge a fee for how I do it?” Let me get this straight: You’re offering seminars in which you’ll teach us how to lose money at gambling. Well, I’ll give you this: You’re certainly learning from your heartthrob Donald Trump who scammed would-be students at Trump University, who bilked shareholders of the publicly-traded company, Trump Hotels & Casino Resorts, and who failed to pay his bills to several hundred contractors and workers. So, yeah, where do I sign up for your seminar? Duh! :)

#81 Stan Brooks on 02.10.19 at 6:59 am

As I note, it’s the goals that may need to be adjusted.

–Doug

Or the environment, if these goals can easily be achieved elsewhere.

Why live in a debt dungeon when there is green fields around?

Grow up people. Life is beautiful if you make it such.
Do not allow anyone to own you.

Taxation isn’t going away.

You can’t tax the shoes off from the bare naked.

#82 crowdedelevatorfartz on 02.10.19 at 8:28 am

@#73 jwk
“We oldsters paid for our education, food, transportation and housing with hard-earned dollars.
******
No you didn’t, you voted in governments who borrowed money to pay for those things.
+++++

The govt paid for my food?
The govt paid for my cars?
The govt paid for my housing?
News to me.
Where do YOU live…… Venezuela?

Quit the ridiculous whining jwk and try something new and radical like…..living on a budget and saving 10%, 20%, 30% of earnings after taxes.
It worked for me and it will work for you.
It’s called discipline.
If you stop bitching, moaning and whining while blaming everyone else and realize “the govt” isnt bailing you out.
Trudeau’s too busy bailing out SNC to be bothered with a mere voter like you.
Retirement savings…..
It isnt easy or every Boomer and Millenial would be set for retirement.
Be different or work til you die at WalMart.
Its your choice and all the whining about how “boomers had it easy” isnt going to change that simple fact.

#83 Shawn Allen on 02.10.19 at 8:53 am

Warren Buffett agrees with Ace Goodheart

Ace at 59 said:

Own the means of production, of the products consumed by the masses. Simplest way of making money. Hands down.

|*************************************

Buffett in 2003 after buying Fruit of the Loom (underwear maker) said:

“We cover the asses of the masses”

His two biggest businesses are the Burlington Northern railroad which indirectly serves the masses and his utilities which again are mass market as is Geico. As is Clayton homes (manufactured houses and the biggest home builder in America). The list goes on and on. He does have a select few luxury businesses but mostly mass market.

And, right, he seldom sells shares and guarantees to NEVER sell your private business (your baby) if he buys it.

#84 paul w on 02.10.19 at 9:08 am

Excellent post Doug. I am going to make sure my kids read this one…

#85 JohnfromKingston on 02.10.19 at 9:08 am

Oilaphant said
$1000000 36 years from now ain’t gonna be much, Doug. I can’t believe people are still slogging this kind of advice to Mils in this day and age. The problem is structural and only someone like Bernie or AOC is gonna solve it. I’m older but I can see now the problem is the boomers, bubbles, the 1%, and taxes. If you don’t like the politics of it then read Picketty instead. Oh yeah, and 36 years from now what kind of state will the environment be in to spend a million? Think that’ll buy safety and security for a frail 65 year old?

…..

I lurk here far more than I post and I am not looking for fight with Oilaphant, I actually agree with him for the most part.

With that said…

I have heard this all before, the Millennial’s are screwed etc.

My father was born in the 1930’s, the great depression era. As a kid he could remember being in the north of Holland watching allied bombers flying overhead on their way to bombing the living day lights out of his German neighbours. We all know the horrors of the 1940’s

The 1950’s? duck and roll nuclear end days

The 1960’s? radical times, social upheaval, black vs white, men vs woman etc. Sound familiar?

The 1970’s? oil embargoes, terrorism, environmental destruction

The 1980’s? Acid rain the the fall of the soviet union

The 1990’s? The Millennial’s coming of age, god help us all :)

The 2000’s? 9/11, economic collapse and low interest rates

Now? Nothing new here, yes climate change is real and not to be under estimated but no need to throw in the towel just yet

The future? Who knows but things are much better than they appear. I am 51 years old, have a modest house that is paid for, a DB pension and no debt, why? because 20 years ago I read the tea leaves, got a relevant education, worked my ass off and lived below my means.

If you are a young person looking to get started in life, nothing has changed. Get a relevant education/learn a trade, live below your means and enjoy. The youth of today have incredible opportunities, google automation. A 3 year diploma can be had for under 20000$ in tuition costs, jobs are endless. A trunk full of tools? less than 3000$ The trades are looking for you.

Do the above and you will be just fine, just don’t buy a house worth more than 4 x’s your income, don’t be a greater fool. Can’t find affordable rent? Move, Kingston is great town to live in, rents are relatively affordable and commute times < 1/2 hour

Oilaphant, yes things need to change, is AOC the person to do it? don't know. She has only been on the job for a couple of months, time will tell. Is JT the right guy to do it? Nope, I had hoped so with his commitment to changing our first past the post electoral system. Didn't take long for fancy sock guy to back off that commitment, no trust left there for me.

Please excuse the long winded post, I am out. I have work I need to get done before Monday morning.

#86 Godth on 02.10.19 at 9:46 am

#84 crowdedelevatorfartz
he must be living in communist bc or alberta, the people there are starving. the people in those provinces need to be liberated! the usa needs to free them and bring democracy. their elections were rigged by the communists, they need a new government imposed on them for their own good. bomb them back to the stone age to free them donald! how can you expect young people to save money when they’re starving under a communist tyranny?

#87 MF on 02.10.19 at 10:09 am

Good post. Love the Seinfeld reference. He’s a great comedians who doesn’t rely on swearing or taboo topics to get laughs. Class act all the way. He’s almost worth 1 billion USD btw. Awesome.

Old me: work work work save for the future.
New me: work work work and I regret not enjoying myself more.

My point is the enjoying the preset part is highly important as well.

MF

#88 Godth on 02.10.19 at 10:39 am

this communist witch Alexandria Ocasio-Cortez is completely against freedom and democracy. who the hell does she think she is? put her in her place now!
Alexandria Ocasio-Cortez calls out America’s ‘fundamentally broken’ campaign finance laws
https://www.youtube.com/watch?v=w0GitfZdc-w

there’s nothing broken you lunatic, it’s working perfectly. stop this hysterical woman!

#89 crowdedelevatorfartz on 02.10.19 at 10:48 am

@#88 Godth
“how can you expect young people to save money when they’re starving under a communist tyranny?”

+++++

Cannibalism?

#90 MF on 02.10.19 at 10:56 am

#81 Figure it Out on 02.10.19 at 6:03 am

“there’s always a reason these people can’t save, and it’s always somebody else’s fault.”

-Couldn’t agree more.

It’s also the nature of the blog, where we attract a lot of people who regret not investing in RE here in Canada (me included) and come here to complain (me included again) about how they have been “left behind”.

Also, the people who are actually busy working and successful are not going to be posting on here, so our forum gets coloured by these people who failed at life and are complaining.

This is not unique to Canada though, I visit lots of other forums and its the same thing no matter where people are located. Blah blah blah government. Blah blah blah taxes. Blah blah blah the weather. Blah blah blah.

MF

#91 Remembrancer on 02.10.19 at 11:04 am

#80 Toronto_CA on 02.10.19 at 4:49 am
My own income is about roughly 4x what it was ten years ago $75,000 versus ~$280k now, and I saved a good amount in my late 20s/early 30s, but if I take a measure of how much I saved versus my current income it looks pathetic.
————————————————————-
Huh? What’s your point exactly? That $280K you is looking down on $75K you as being pathetic or is it aura self-fluffing based on your income? Congrats and oh by the way, if you aren’t hedonist adapting to those increases your further ahead then most, if you are spending it all and not saving more at that income level then reap away…

BTW, enjoy the run while it lasts – whatever it is you are doing, unless you are the latest beneficiary of a professionally managed multi-generational family trust with enduring income you won’t be pissing all away or have a business that you can hand off to someone else who can keep it going while not ripping you off or running it into the ground, someday the jig will be up. You’ll get slower or older or sick or the latest hot shot will show up and you’re done – make sure you save for the future you as well enjoying the fruits of your labour now…

#92 Remembrancer on 02.10.19 at 11:51 am

#77 Smoking Man on 02.10.19 at 12:49 am
The most lucrative game for the house in Vegas is Mississippi stud.
It robs almost everyone but me. Remember dogs I learned to code. I built simulators. Got this shit down to a science.
—————————————————————
Mississippi Stud? Isn’t that the Lucky 7s of table poker games?

#93 young & foolish on 02.10.19 at 11:53 am

“If you take 3500 month out in retirement (4.2% annual) you need 5.2% annual growth to keep your capital. Not likely nowadays.” — Doc

I am in agreement about saving and investing, but I am also dubious about that 6% going forward (even though we only have past figures as reference).

Maybe AOC, Bernie, Warren, and Uber-Kensyans like Paul Krugman will try to save us (or doom us) by bringing in MMT.

#94 millmech on 02.10.19 at 11:55 am

#30 Martin 9999

I work with people who take home over $3k a paycheque and yet live in their overdraft and use their RRSPs to fund family vacations.
Perpetually broke and always complaining about their situation at the smoking area during breaks eating their lunch from McDonalds, then drive in their new financed truck to the brewpub after work for a couple of high priced cold ones because home life sucks and ordering dinner on their newest edition iPhone because they are too tired to cook.
This is how a lot of people live and they wonder why they can not get ahead financially.

#95 millmech on 02.10.19 at 11:58 am

#33 JSS
We just hired two people for our plant, one is 58 the 61 and we are short at least two more people. If you have a lot of valuable experience you will be in demand.

#96 Herb on 02.10.19 at 12:06 pm

Doug, are you going to lead the real “millenial revolution”, the one in which millenials (duly joined by other failing cohorts) stand up and demand the jobs that will allow them to invest $600 per month after taxes and non-discretionary expenses?

#97 crowdedelevatorfartz on 02.10.19 at 12:12 pm

Ok Millenials.
Please watch the Liberal spokeperson avoid the most basic of questions.
Its like trying to nail Jello to a wall……

“Is Jody Wilson Raybould bound by client / lawyer privledge when she wont answer the question.

Was she was pressured by the PMO’s office to plea bargain with SNC lavalin?”

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

The Law professor commenting after the political pundits speaks volumes from the 20:00 minute mark

https://torontosun.com/news/national/lilley-pms-shaky-denial-of-interfering-in-corruption-case

SNC Lavalin.
A major political contributor.
….. facing a corruption trial for their dealings with Libyan govt officials before murderous dictator Gadhafi fell… (we wont talk about the $1.3 billion dollar Montreal Super hospital bid and plea bargain agreement).

https://www.ctvnews.ca/business/snc-lavalin-preliminary-inquiry-begins-in-gadhafi-era-fraud-and-corruption-case-1.4154252

https://www.thestar.com/news/canada/2018/12/17/ex-manager-sentenced-to-39-months-prison-in-snc-lavalin-hospital-corruption-fraud.html

If SNC is convicted they will be banned from all Canadian Federal contracts for 10 years (kinda like the World Bank 10 year ban for bribing foreign govt. officials)

http://www.worldbank.org/en/news/press-release/2013/04/17/world-bank-debars-snc-lavalin-inc-and-its-affiliates-for-ten-years

Bye bye Military contracts, Bye bye Postal Contracts, etc etc etc. Billions in revenue…..

https://nationalpost.com/news/politics/billions-at-stake-for-snc-lavalin-corruption-conviction-would-bar-firm-from-federal-contracts-for-10-years

The Law professor commenting after the political pundits speaks volumes from the 20:00 mark

#98 crowdedelevatorfartz on 02.10.19 at 12:14 pm

@#98 Herb

You should stop smoking herb Herb

#99 Stan Brooks on 02.10.19 at 12:16 pm

#92 MF on 02.10.19 at 10:56 am

You are either extreme naive or out of touch with reality.

Your statement that ‘successful’ people (who you define as solely non complainers) will succeed anywhere reject the impact of the environment and society.

Go and try to be successfully in North Korea, Cuba or Venezuela today or in the Veimar republic of former communist dictatorship countries at the time.

There are times for complacency and conformism, times to relax, times to worry and times to be outright paranoid.

Your preaching that everyone who disagrees with something and has the courage to point it out, or wants to improve and fix something that is wrong is a ‘complainer’ or ‘a failure or not successful’ is stupid.

I normally don’t like to point that out but you come out clearly as somebody very limited intellectually who at the same time has the nerves to judge and pass judgment for others.

With opinion and conviction but complete lack of facts.
The worse type of mentality to have around as you are/your mind is basically closed for anything that deviates from your point of your and persistent enough to repeat nonsense that does not enrich any conversation.

#100 millmech on 02.10.19 at 12:18 pm

#92 MF
Have you looked at what the rents are in a lot of cities in Canada, houses that I have looked at buying are about 30% cheaper to rent so I do not think I will be buying in the near future or maybe ever. That means more cash into investments which just keep churning out more money, most companies are now raising their dividends so an even better return.
Listing ID: 176386,costs more to own than to rent and there are a lot of these all around Canada.

#101 Doug Rowat on 02.10.19 at 12:23 pm

#98 Herb on 02.10.19 at 12:06 pm

Doug, are you going to lead the real “millenial revolution”, the one in which millenials (duly joined by other failing cohorts) stand up and demand the jobs that will allow them to invest $600 per month after taxes and non-discretionary expenses?

I employ 4 millennials. What else do you want?

–Doug

#102 Stan Brooks on 02.10.19 at 12:24 pm

#92 MF on 02.10.19 at 10:56 am

You are also mistakenly stating that majority of the posters on this site are people who missed ‘the great real estate’ train and now are complaining about it.

Many are worried about the impact from such idiotic policies on the overall economy, cost of living, retirement, inability to have kids, loss of competitiveness for the economy, impact on crime etc. and you are coming hard out of nowhere with no arguments or facts and boldly state the a ‘successful’ person has to ‘succeed’ everywhere, in all conditions.

If you don’t realize the base-lessness and stupidity of such attitude (combined with strange arrogance), I can’t help you (we know that you think you don’t need help, but you in reality do).

This world is driven by the people who disagree.
Success is in the eye of a beholder.

#103 Ponzius Pilatus on 02.10.19 at 12:59 pm

As I scan the comment section, I don’t find any die hard communists among the posters.
But there are quite a few bad ass capitalist posters who would even make Adam Smith blush.
“own the means of production”.
Always makes me belly laugh.

#104 Godth on 02.10.19 at 1:03 pm

#98 Herb
we need to get rid of all these ridiculous regulations, and high wages, in this country so manufacturing can return. it’s all touchy feelie good that the third world is being raised up out of poverty but industry needs to come home under new rules. why should indonesians benefit from all this textile manufacturing, for ex., when young canadians could be doing the same jobs?
https://www.youtube.com/watch?v=AkSXB-lRAp0
young people need a brighter future.

#105 Idiocracy 2019 on 02.10.19 at 1:11 pm

Anti-aging science. This field has claimed to have made some major breakthroughs and discoveries, even reversing the effects of aging in geriatric rats. It’s not out of the realm of possibility the average human lifespan could increase by decades. Human trials supposedly beginning within the next few years. Might throw a wrench into millennials best laid plans. Or maybe it’s all BS. Or it will be only for the rich.

#106 Godth on 02.10.19 at 1:18 pm

#98 Herb
oops, sorry herb, i posted the wrong vid.
here’s how non-competitive canadian industry is these days. we need to change our ways to bring these jobs back for the young people.
https://www.youtube.com/watch?v=tsgss_2ETxs

as you can see, we have a lot of work to do to be competitive.

#107 Unhinged Trader on 02.10.19 at 1:18 pm

The conclusion is a little strange.

Millennials in Canada are pursuing absolutely the same path Boomers did:

Securing a piece of property and then hoping that it inflates 100% every 2-3 years.

The Boomers got lucky, because they happened to sit on property at a time when Asian wealth (which in turn came from job destruction in North America) was flowing into Canada.

I don’t think the Millennials are going to see that kind of inflation in RE.

#108 PastThePeak on 02.10.19 at 1:44 pm

#30 martin9999 on 02.09.19 at 1:21 pm
To Doug:

Advising not to drop eight dollars for a latte In order to save for that million dollar, Was the best!!

with all due the respect for the blog and you , Your mental state of mind as a financial advisor Needs help.

But hey I can understand it’s not easy to come with new stuff every day, so you’re still doing great and the specially free of charge . thx
+++++++++++++++++++++++++++++++++

Only an asshole would post derogatory comments like that on a private blog, provided at no cost and with no advertising, offering free and valuable information with wit and humour.

You are an example of all that is wrong in our society.

#109 Godth on 02.10.19 at 1:49 pm

#92 MF
one of the biggest industries that these whiners are missing out on is e-waste recycling. i’ve hired a large lobbying firm to change these stupid environmental laws in canada so that we can be competitive. why should people in africa, south asia and asia have a corner on this industry? let’s bring it to canada, we produce plenty of e-waste ourselves but think of the international business opportunities. we have to be competitive though. https://www.youtube.com/results?search_query=e+waste+documentary
lots of work to change canadian laws but big money to be made. brighter future for the youth too.

#110 Godth on 02.10.19 at 2:15 pm

#105 Ponzius Pilatus
Adam Smith? he wrote the shortest book in the history of the world. the title being “the hidden hand” and the sum total of the contents being “the hidden hand of the free market is the solution to everything. the end”.

#111 Remembrancer on 02.10.19 at 5:07 pm

#112 Godth on 02.10.19 at 2:15 pm
#111 Godth on 02.10.19 at 1:49 pm
#106 Godth on 02.10.19 at 1:03 pm
#90 Godth on 02.10.19 at 10:39 am
#88 Godth on 02.10.19 at 9:46 am
Wow, between (small snapshot only) working with the Waltons to reinvent domestic textile production, advocating for the overthrow of the elected Government of Canada, ranting er advocating about some American politician that seems to strike a nerve and hiring lobbying firms to promote a take over of e-recycling (why not add ship-breaking at the same time and make it a 2-for-1?) its a wonder you have any time to post to this blog. Good on you sir.

All this socialism and communist talk, what’s your position on a real post-communist state / oligarchy hybrid meddling with the fabric of the world, have an opinion on that? Or maybe the real Maoist communists, how about them?

#112 Herb on 02.10.19 at 7:35 pm

#103 Doug,

if you pay them enough to invest $600 amonth, you’re good.

#113 Herb on 02.10.19 at 7:53 pm

# 106/108 Godth,

if we get rid of all of those constraining regulations, our environment will look like Indonesia’s. When I was a teen in Scarborough, Ont. in the late ’50s, there was a little brook running across the top of our street. It used to have the most amazing colours, because there was a paint factory upstream that released into it periodically.

There has to be a way to have enough employment at living wages and environmental protection to keep us going. Some European countries are doing it, so it can be done. We should take ideology out of consideration and see what works for which reason.

#114 CHERRY BLOSSOM on 02.11.19 at 9:30 am

Millennials do not need a retirement plan as they will be working all their life. They just need enough money for a body bag and a Federally funded cremation

#115 squished18 on 02.11.19 at 9:33 am

#29 Damifino

We don’t disagree on needing to save, financial independence, and the ability to be your own boss. My point is that if you want to speak to the horny and lustful, you need to speak their language. The financial services industry still mostly speaks in the language of the gray and wrinkly. In fact, your own post tells a story that is more compelling (FU money) than the traditional one of the industry (don’t outlive your money).