The mighty blunder

If this were a blog read by normal people, today’s topic would be what happens when a US president implodes.  But, Mr. Chairman, I fear for my life and that of Bandit’s, since the audience is rife with MAGAmaniacs. So the words ‘Donald Trump’ or ‘Michael Cohen’ will not appear in this post, lest we face man-shaming by a gang of deplorables in the dog park.

But, jeez, how long can it be that 45 survives? And Jody just detonated Mr. Socks.

Anyway, not going there. Not today. Instead let’s deal with the First World problems that plague us all. Like making $350,000 a year.

“You have the best blog on the internet. People should read it whether they care about finances or not.” Nice SU, Jim. Not get on with it.

My situation – early 30s single, probably married soon. I’m a physician, ~$350K/year. She’s in dental, ~$90K per year. I’ve followed your usual advice – maxed the RRSP, rented apartment, drive a clunker. I spend ~$60K/year on myself. Since I began making any significant money, and paying a marginal rate of 48%, I’ve spent way too much time thinking about my taxes, and I’ve paid too much money to other people to think about them for me.

I wonder if you share my belief that the implementation of income tax was a mighty blunder of our society. Since income taxes aren’t going anywhere soon, we need to get income taxes right (as much as we can). I’m completely convinced that a flat tax with a large personal deduction/credit is superior to the progressive tax.

If you agree, I’d like to hear your thoughts on the politics around income taxes. If the flat tax is the only system that makes any sense, then why don’t we have it? Is it simply that most voters can’t be convinced of its benefits? How much of a role do you think the tax preparation industry has in lobbying for complex taxes? As a financial guru, celebrity, and former politician, your perspective could be very interesting and influential. It will make for some great banter in your steerage section.

If you disagree, please discard and carry on.

It’s an idea many people have backed over the years, but without traction. The problem, Jimbo, is that (unlike you) four in ten families in Canada pay zero income tax. And they all vote. Meanwhile the top 20% of income-earners cough up 70% of the income tax collected – and they’re a political minority. So any party bringing in a flat tax would be correctly seen as benefiting the rich (doctors like you) while penalizing $80,000 families who own houses, minivans and offspring and pay no net tax.

That’s because in order to work and raise sufficient revenues for the government, a flat tax would need to be as universal as possible – with only the lowest income groups exempted. Your taxes would decline from 48% to (say) 20%, and people paying 0% would also go to 20%. See what I mean? Rebellion.

Over to Alan, a cop:

“I’ve been a reader of yours for roughly three years now and I can’t put into words just how often your insight and expertise has helped me change my financial well-being for the better.  As it’s tax season, you’ve spoken a lot recently about the importance of making RRSP contributions, which relates to a question I’ve had on my mind recently.

‘As someone who’s turning 30 this week, I’ve made many financial sacrifices over the last two years while several of my friends were out purchasing overpriced mortgage debt. I’m finally now just a few weeks away from maximizing my TFSA limit after spending prior years using it as a save and spend account. Yes, it’s all invested and diversified… Now I know the next logical step would be to return to making RRSP contributions (something I haven’t done since 2014), but I’m unsure of how that will conflict with my current career path.

‘I currently work in law enforcement meaning, yes, I do contribute to a pension plan. There’s absolutely no guarantee this thing will be around in five years, never mind when I reach retirement age within the next 35 to 40 years. However, if the pension plan is still around then (whether it’ll be a defined benefit or contribution by that point is anyone’s guess) what are the ramifications of drawing from an RRSP and a pension plan at the same time?

Yes, I know it’s absolutely important to take the money up front. However, I’m also curious to see what this will mean for my finances later on in life (if the job doesn’t knock me out first).

It’s easy to hate people with DB pensions, but you’re wise to question whether yours will be there decades from now. Defined benefit plans have been croaking steadily since they’re unaffordable to employers – unless backed by tax dollars. We’ve seen many instances in the US where ‘ironclad’ pension plans in the public sector have gutted retiree benefits because taxpayers refused to subsidize them any longer.

Having said that, if you do retire with it, having a fat RRSP could cause tax woes in the hazy future – after you turn 71. At that time (if current rules hold), the retirement plan would convert to a RRIF, forcing you to withdraw a small amount annually (now about 5%) and add it to your income. That could pop you into a higher tax bracket – which is the chief risk. This is the Big Excuse many people with a DB plan (especially teachers) use for never opening an RRSP and, in fact, saving next to nothing.

So the best strategy is (a) TFSA first – fill it, invest it, then (b) a non-reg account for tax-efficient growth (dividends and cap gains) which can supplement retirement income, then (c) an RRSP for tax-shifting – to reduce the burden now while giving you a cushion for years when you might goof off, be laid off or check out. And you can use the RRSP refund to fund the TFSA. By the way, when you hit your 70s be sure to ask me how to melt down the RRIF and pay no tax. Ha.

Time for one more? Meet Derek.

Please allow me to begin with the requisite homily regarding your blog: it rocks and is a *must* during my daily reading regimen.

Let’s get to the point: I’m 44, work for Big Law (*not* a lawyer so please don’t sic the dogs on me) and I feel I’m spinning my wheels. For a number of reasons I’ve really only begun to be in a position to save and invest within the past 6 or 7 years (more than a decade of precarious contract work, a failed marriage and other lovely things prevented that from happening) and the more I read and research (am a librarian by training) the more I feel I’m missing out on something.

Income: around 75-77K after taxes. Savings/investments: 65K (TFSA), 27K (RSP), 8K (non-registered) with Investors Group: just received my statement, around 3% returns over the past five years which seems *really* bad to me. With that in mind I have a few questions:

– Stick with IG? My adviser…nice enough guy, buys me a few drinks every quarter, assures me I’m on the right track. My spider-sense is tingling about that, I’m not sure that track is leading anywhere other than to a tent under the Gardiner Expressway for my retirement.

– If not IG, where? The banks, no way (and this from someone who’s mom was a teller for 30 years). I’m too small-potatoes for larger investment houses/options either at the banks or elsewhere. Roboadvisor?

– ETF’s: in your experience, where is the best retail option for a small investor such as myself?

That’s all I can say for now. I suppose seeing that statement from IG was one of those “teaching moments”, and I am aware the markets have been a bit rough recently, and I do take your advice not to stress over the day-to-day, but it’s year-to-year and beyond that’s starting to concern me. And so yes, any advice, however brief, would be much appreciated.

Investors Group is trying desperately to rebrand as IG Wealth, for good reason. The mutual fund behemoth is on the wrong side of history, as people wake up to ridiculous fund fees which shrivel performance. Many of the advisors are really salesguys, and IG has been famous for locking people into a mutual fund prison called ‘deferred sales charges.’ If you’re an inmate, you know why.

But you’re right. The banks are little better. Big, fancy, Porsche-driving portfolio manager dudes like those I work with might not be an economical choice, while robos are truly scary since you’re handing money to an algo. So be simple about it – ask your existing advisor to sell off the mutual funds and place you into a low-cost 60/40 ETF portfolio. If the old IG is really the new IG, this should be an option. If not, man up and self-invest. Make your Portfolio Great Again.

157 comments ↓

#1 Hans on 02.27.19 at 5:09 pm

Bye bye Justin! Hello to weeks and weeks of inquisition style politics about who said what to who, when.

“For a period of four months from September to December, I experience a consistent and sustained effort by many people within the government to seek to politically interfere in the exercise of prosecutorial discretion in my role as the attorney general of Canada in an inappropriate effort to secure a Deferred Prosecution Agreement (DPA) with SNC-Lavalin.”

#2 Smoking Man on 02.27.19 at 5:09 pm

Quote of the year from Washington today.

“I lied. But I’m not a liar.”

#3 Phylis on 02.27.19 at 5:25 pm

Hmmm, no comments moderated yet… Garth must be watching tv.

#4 bdwy sktrn on 02.27.19 at 5:26 pm

trump wins election again 100%.

but jody just detonated a mighty nuke under mr dressup. he’s dead. for ever.

#5 Sail away on 02.27.19 at 5:28 pm

#84 Dolce Vita on 02.27.19 at 5:31 am
#63 Sail Away
Have a care with the minutiae:
https://i.imgur.com/JhFBVbM.jpg
Observe the 5th Circle of Dante’s Internet Inferno.
A mere 2 Circle’s away from its bowels.
———————————————–
Dolce,

No minutiae, I just find it ironic when someone insults the intelligence of others while using incorrect grammar, spelling or punctuation. My comment was meant as not-so-subtle skepticism about your capacity to judge.

#6 Shawn Allen on 02.27.19 at 5:31 pm

But Why the Fake Bank Ownership News

#146 Penny Henny on 02.27.19 at 4:45 pm

Hey ‘I’m stupid’
a quote from the article you posted
“So what’s going on here? Some kind of charade, where one bank is pretending to be five different banks?

Not exactly. According to financial experts The Huffington Post Canada talked to, many of these banks’ investments in each other are through mutual funds. The banks own these shares on behalf of their customers.”

Did you catch the last sentence?
Why read the WHOLE article when you can just read the headline right?

******************************************
The people to beat up on here are the Huffington Post not so-called I’m Stupid.

It sure looks like Huff post found out that the gist of their story and their headline was wrong but went ahead with the article anyhow. They did sort of stick the truth in there but they should have abandoned the article, no?

#7 Deplorable Dude on 02.27.19 at 5:32 pm

“But, jeez, how long can it be that 45 survives?”

President Teflon……the guy is squeaky clean.

Cohen has nothing…..at least he confirmed yet again he wasn’t in Prague….a key part of the ‘dodgy dossier’.

Totally bizarre having a convicted criminal who is about to goto prison, who has lied to Congress before…back giving testimony to Congress. Pure optics by the Dems.

As the White House said…why bother swearing an oath…..

Meanwhile the President is trying to stop a war and bring NK into the 21st Century…

R.E. Investors Group….I nearly got suckered in by them before I found Garth’s blog. Sucky high fee front end loaded mutual funds. Just as bad as the [email protected]

#8 Ray Skunk on 02.27.19 at 5:37 pm

Damn the W-R testimony feels good.

This though, to me, is the dynamite that will sadly be buried:

Telford is said to have said “If Jody is nervous … we will line up all kinds of people to write op-eds” to say JWR was acting appropriately.

Liberals letting the cat out of the bag that they pretty much control the media.

#9 not 1st on 02.27.19 at 5:47 pm

How comes its govt workers, lawyers, doctors, teachers, DINKs and cops always looking for help.

Don’t you get any emails from people who actually run businesses? Just once want to see one of them get some air time on this blog.

#10 Rick on 02.27.19 at 5:55 pm

“Make your Portfolio Great Again”. WOW.

#11 Drill Baby Drill on 02.27.19 at 5:55 pm

Trump is still around because the deplorables luv him no matter what. Trump will be re-elected as well. The options available to the USA voters are so bad that Trump looks great to them.

#12 Mattl on 02.27.19 at 5:57 pm

I hope this doesn’t get squashed, because I believe robo’s are good for small balance investors….

She is the perfect candidate for a Robo. She can do her own research on which one but fee’s are low, they offer full transparency and for 50bps offer a good alternative to self investing.

Once she outgrows the robo, hits a few 100K in investments, she can move over to someone that can really help her with estate, tax and retirement planning. I think this is where the robo’s lose utility.

I know robo’s have been poo poo’ed here as an option but they are leagues better then most bank or IG type options.

#13 Dolce Vita on 02.27.19 at 5:57 pm

#1 Hans

Yup, it’s riveting for sure.

Garth wonders about how long Trump will last. For once, the grass is not greener on the other side of the fence.

Trudeau needs to resign and be prosecuted for what he did along with his enabling apparatchiks (and those Liberal clowns on the Finance Committee embarrassing themselves asking Jody questions as I type this).

#14 Nat on 02.27.19 at 6:01 pm

Garth, are you saying when you have a DB pension that you should use a non-reg before RRSP? And only contribute to RRSP for specific scenarios like irregular high-income years (ex to avoid capital gains on a rental property or other gains, bitcoin gainz?) or to increase CCB? Otherwise non-reg?

#15 BigQ on 02.27.19 at 6:02 pm

Taxation is theft.

#16 Ex-Cowtown on 02.27.19 at 6:05 pm

Watching Cohen testify to Congress was like watching a Viet Nam war POW read a statement on TV.

And the Democrats who fed him his talking points were preening just like the Viet Cong jailers.

If you’re too young to remember watching this type of spectacle live on TV in the 60’s see if you can find it on Youtube somewhere.

Sad, very sad.

#17 Chopping Broccoli on 02.27.19 at 6:08 pm

@#9

People who actually run businesses actually work.
They’ve learned to look after things themselves knowing no one else will. Their sole purpose is to collect and remit revenues to the Government.

#18 NoName on 02.27.19 at 6:13 pm

#5 Sail away on 02.27.19 at 5:28 pm
#84 Dolce Vita on 02.27.19 at 5:31 am
#63 Sail Away
Have a care with the minutiae:
https://i.imgur.com/JhFBVbM.jpg
Observe the 5th Circle of Dante’s Internet Inferno.
A mere 2 Circle’s away from its bowels.
———————————————–
Dolce,

No minutiae, I just find it ironic when someone insults the intelligence of others while using incorrect grammar, spelling or punctuation. My comment was meant as not-so-subtle skepticism about your capacity to judge.


@Sail away

Answer me this plz.
If some one who speaks and write with an accent, speaks or writes to you, is he insulting your inteleegence too?

#19 Reximus on 02.27.19 at 6:19 pm

#4 Trump will win 100%
======

I don’t gamble normally but I would go LARGE that Trump won’t even be the R Nominee in 2020…and Don Jr is in big legal trouble

#20 tccontrarian on 02.27.19 at 6:24 pm

#9 not 1st on 02.27.19 at 5:47 pm

How comes its govt workers, lawyers, doctors, teachers, DINKs and cops always looking for help.

Don’t you get any emails from people who actually run businesses? Just once want to see one of them get some air time on this blog.
————

Three likely reasons:

1. Too busy running their business to find time in surfing internet blogs

2. Are already financially aware (skills developed from running businesses), and if there’s something they don’t know they can do their own research.

3. Aren’t afraid of learning the ropes on their own and taking risks is something already familiar.

TCC

#21 I just hope on 02.27.19 at 6:31 pm

you helped that cat out.

#22 AGuyInVancouver on 02.27.19 at 6:35 pm

#7 Deplorable Dude on 02.27.19 at 5:32 pm
“But, jeez, how long can it be that 45 survives?”

President Teflon……the guy is squeaky clean….
_ _ _
How’s that meth working out for you?

#23 Generation Why on 02.27.19 at 6:39 pm

Well I was awaiting your post today about SNC and the Jody Report. I even made popcorn. Perhaps the comments section will provide.

Why can’t you run a story on people making $35,000 a year. You know those screwed without a chance?

#24 Ustabe on 02.27.19 at 6:40 pm

Back in the day when Investors wasn’t IG, even before they were a Group, they were Investor’s Syndicate.

I was recruited to join the Saskatoon office while still in University. Passed all my exams for securities and insurance and lo and behold ended up being Western Canadian Rookie of the YEAR.

My reward was an all expenses trip to Winnipeg. By bus. Crap hotel, crap meal, silly, boring awards ceremony. My largest, most vivid memory was being dressed down by some lardy white guy in an ill fitting suit for not wearing a tie.

Anyway, the office was populated by a legion of former Encyclopedia Britannica door to door salesmen and we were told to sell everyone MAPs (money accumulation plans). At the time my credit union was offering certificates of deposit at 18%, these MAPs were returning in and around 4% .

I got out of there 1.2 years later being the honest and humble guy I am.

Sad outfit then, corporate culture being what it is I can onlt assume sad today.

#25 Reximus on 02.27.19 at 6:42 pm

#15 Taxation is theft
======

then fix your own clogged arteries and potholes

#26 Leichendiener on 02.27.19 at 6:43 pm

Jody, Jody, Jody… such integrity! How refreshing. But in the underworld of politics not an asset.

#27 For those about to flop... on 02.27.19 at 6:46 pm

Recent sale report.

Let’s do a Price Discovery Post.

Can you get anything half-decent in Delta for 800k?

Apparently.

The details…

10914 Mcadam Rd, Delta.

Sold 800k February 2019

Originally asking 874k

Assessment 894k

So these guys played the game for seven months or so and then probably figured out it wasn’t going to get any better this Spring and took the offer.

The buyer got something respectable for what else is around for the money and has easy access to Nordel Way.

Perhaps too easy, but there is always a reason that a house is towards the bottom of each regional market.

People paying that for Townhomes out that way, with all the fees, so at least these guys don’t have to worry about that and special assessments and while the house is a little dated it has at least had some updates done to it over the years.

Kitchens and bathrooms cost the most to renovate and cause the most inconvenience for the occupants and in this case they have been done to some degree…

M44BC

https://www.zolo.ca/delta-real-estate/10914-mcadam-road

#28 not 1st on 02.27.19 at 6:46 pm

Sorry cant leave trump alone. What did cohens testimony prove. That Trump paid off people who were threatening to extort him. As soon as Trump won he dropped the office tower in Moscow. So his kids knew about it, so what. That’s not collusion. And its not against the law to look at WikiLeaks, everyone has done it. If its illegal go arrest Assange.

Congress better be careful going after sensationalism against POTUS. Works both ways and we should certainly find out how some like Pelosi who makes a couple hundred a year amassed a $200M fortune sitting in a chair.

#29 AK on 02.27.19 at 6:49 pm

“But, jeez, how long can it be that 45 survives? And Jody just detonated Mr. Socks.”
=====================================
You have admit that the Cohen testimony was a complete circus act.

As far Mr. Socks goes, well, he is toast.

#30 Dolce Vita on 02.27.19 at 6:59 pm

#5 Sail away

Yet another Philadelphia Lawyer is born.

The insult was to Canadians with egregious and misleading information about their ability to pay. Blatant inaccuracy best known as “click bait” or did you happen to agree with them?

You see the difficulty here. You are trying to bend facts to justify your obsession with grammar.

Just admit you’re obsession and stop twisting matters and words to obfuscate your agenda.

#31 AK on 02.27.19 at 7:03 pm

#11 Drill Baby Drill on 02.27.19 at 5:55 pm
“Trump is still around because the deplorables luv him no matter what. Trump will be re-elected as well. The options available to the USA voters are so bad that Trump looks great to them.”
=====================================
No doubt. Today’s Democratic Party performance has just paved the road to President Trump’s 2020 re-election process.

#32 Stahom on 02.27.19 at 7:07 pm

30 years ago my father gave the “The Wealthy Barber” upon my graduation from university and after securing of my first entry level job. Though mutual funds were the thing in the 80s, I evolved to ETFs with his council as they emerged. An invaluable lesson from a father to his children, one that has granted my family financial security. Financial responsibility and family finances are an open and normal discussion with our teenage kids and they can recognize the benefit from our lifestyle.

“The Wealthy Barber” or similar should be part of high school curriculum as in the Career and Life Management (CALM) unit in my kid’s high school. Only rudimentary financial items are discussed, budgeting and how to save money is covered (10-15% good!), but not what to do with the saved income such as investments (non-RE) to ensure independence. So many young people adrift even though they have income in their early working lives.

Thanks dad. Still waiting for my sex talk though…

#33 Barb on 02.27.19 at 7:07 pm

Jim: …”I spend ~$60K/year on myself.”

What on earth would cost $5K monthly?

Unless, of course, you chew a lot of gum.

#34 AK on 02.27.19 at 7:08 pm

#2 Smoking Man on 02.27.19 at 5:09 pm
“Quote of the year from Washington today.
“I lied. But I’m not a liar.” ”
====================================
Actually, quote of the century.

Today’s testimony by this Cohen clown and the performance of The Democrats was priceless.

Fox News should have charged admission…

#35 Dolce Vita on 02.27.19 at 7:09 pm

#26 Leichendiener

So true about Jody.

As to the underworld, yes, true as well. You wish that were not so but, it is.

Still, I take heart that there are Canadian’s like Jody in Government that believe in the Law being upheld and not interfered with.

And I like it that the underworld, once and awhile, gets its nose bloodied and exposed for what it is. As a member of the masses, I like that, a lot.

#36 Howard on 02.27.19 at 7:12 pm

#4 bdwy sktrn on 02.27.19 at 5:26 pm
trump wins election again 100%.

but jody just detonated a mighty nuke under mr dressup. he’s dead. for ever.

————————————————

I hope you’re right but 8 months is a VERY long time in politics.

#37 Marc Roger on 02.27.19 at 7:13 pm

I was with IG based on a friend’s suggestion. Ended up going for the leverage loan investment plan. Apparently their default spam product.
The whole experience was the catalyst for my self-education on personal finances. After a few years of unraveling from their net, I’ve never looked back.
Expensive lesson. But a good one.

#38 Greg on 02.27.19 at 7:18 pm

@Derek – just invest yourself! 3% YoY growth is pretty terrible.

Ditch IG and use Questrade or something similar, and buy your own ETFs.

#39 JohnT on 02.27.19 at 7:21 pm

Hi Garth.

How do you melt down a RRIF and pay no tax?

Thanks
John

#40 The Fat Lady on 02.27.19 at 7:22 pm

ASTEROID!!!!!

Heading on its way to earth at a rapid pace.

Finally we won’t have any of this Money B.S. to worry about anymore.

Caveman days are a comin.

#41 MGibson on 02.27.19 at 7:26 pm

Neither testimony will have significant impact.

The elections are too far off and people’s memories are short.

#42 crowdedelevatorfartz on 02.27.19 at 7:30 pm

@ Derek

I also had a financial “advisor” that was a “pal” who took me for drinks.
IG was one of his fave’s
He had me ‘invested” in every high fee- low return piece of sh!t he could find.
After reading this blog for over a year I began to question the fees, the returns, why no ETF’s, etc.
‘Harrumph! Well if you WANT to go to ETF’s you CAN! But I wouldnt recommend it!”
Absolute garbage portfolio.
I moved everything a few months later.
I was nothing more than a commission fee to that sleazy, lazy piece of sh!t.
He cost me thousands and years of lost potential earnings.
The only time he called was RRSP season.

Here’s a test.
Ask him about ETF’s and see if he changes the subject.
Ask about the Mutual Funds high fees and see if he changes the subject.
Ask him when HE plans on retiring.
If he says, “Before I’m 50!”
Ask him if any of his clients have retired before 50.
You are nothing more than a commission.
He doesnt care about you.

Move.

#43 expat on 02.27.19 at 7:38 pm

Well – Judy Wilson Raybold just spoke her truth.

Hubris takes many forms
It pretty clear that the supposed chosen one and the Laurentian Mafia Liberal friends are above the law in their own minds.

Lets call an election and put this corruption to an end

#44 the ryguy - In cabo on 02.27.19 at 7:39 pm

Garth I love your blog. I remember reading your book 2020 as a young teenager because I was bored at a family friends cabin, I bet I was the youngest reader of your book. That night at dinner I dazzled everyone by explaining how they should be selling their properties because the demographics meant there was no one that would want to buy their houses when they want to retire. 13 year old me was dropping knowledge bombs straight from your book.

You give hours of your life to try and right the ship of financial fools. You’re clearly an exceptionally intelligent man and as much as it makes you uncomfortable you really deserve all the ‘mandatory suck up’ praise all your loyal readers give. But I gotta ask.. what is it you think Trump did?

Its been two years he has been president and there has been a non stop brigade of some murky relationship to Russia..who btw bought Uranium from O & Hill dog..but ok, lets put that on the back (nuclear) burner for now. I get you don’t care for him or his style..got it, understood..but what do YOU think he did? Please, us MAGAmaniacs really want to know.

#45 expat on 02.27.19 at 7:45 pm

Police find meth smuggled into Canada through new Ford cars built in Mexico http://bit.ly/2T0MlNs

Trump was right to build a wall it seems

Or maybe the Auto business is in worse shape than anyone thinks

Lease a Ford get a pound of Meth

#46 Tony on 02.27.19 at 7:47 pm

Re: #2 Smoking Man on 02.27.19 at 5:09 pm

I can just see the news captions after Trump steps down to avoid impeachment and the entire Trump family is behind bars for tax fraud.

#47 yorkville renter on 02.27.19 at 7:49 pm

#45 – the way it was found proves the wall is useless… say, why didnt they build this critical bit of infrastructure when the GOP controlled all 3 branches of government?

#48 Tony on 02.27.19 at 7:53 pm

Re: #19 Reximus on 02.27.19 at 6:19 pm

Nancy Pelosi is gearing up for her stint as interim president. Trump will take good advice and step down to avoid criminal charges. I know this isn’t justice but Trump has always cheated the system.

#49 Long-Time Lurker on 02.27.19 at 7:59 pm

Sunny ways.

#74 Politico on 02.26.19 at 11:11 pm
Can anyone explain what is going on in Venezuela? Why do US politicians care what is going on there? Why threats to invade? I can’t figure it out.

>Nicolas Maduro equals Nikolai Ceaucescu.

What’s Going On In Venezuela (In A Nutshell)

…But the situation has changed in Venezuela, and as the economic situation deteriorates there is a chance that protests like this could begin to generate additional social momentum in rejection of the status quo. President Nicolas Maduro has been in office for less than a year, and in that time the inflation rate has surged to over 50 percent and food shortages are a daily problem. Though firmly in power, the Chavista government is still struggling to address massive social and economic challenges. Massive government spending, years of nationalization and an overreliance on imports for basic consumer goods have radically deteriorated inflation levels, and undermined industrial production.

How the government responds will play a key role in the development of these protests going forward. The government cannot afford to crack down too hard without risking even worse unrest in the future. For its part, the mainstream opposition must walk a careful line between supporting the sentiment behind open unrest and being seen as destabilizing the country.

Maduro retains the power to punish opposition politicians, and reaffirmed that Feb. 11 when he stated on national television that he intends to renew the law allowing him to outlaw political candidates who threaten the peace of the country. The statement was a clear shot over the bow of opposition leaders, and may foreshadow a more aggressive government policy designed to limit political opposition…

https://www.zerohedge.com/news/2014-02-16/whats-going-venezuela-nutshell

https://www.euronews.com/2014/12/22/anniversary-of-the-final-days-of-ceauescu-regime

Anniversary of the final days of Ceaușescu regime

By Euronews • last updated: 22/12/2014

Christmas Day marks the 25th anniversary since the death of Nicolae Ceaușescu, one of the most feared and tyrannical leaders in Europe in the last century.

The Romanian dictator, known as the “Genius of the Carpathians”, was in denial right until the end of his life that his harsh Communist regime was crumbling before his eyes…

…In December 1989, protests began in the city of Timisoara, initially in support of a Hungarian pastor who was the target of a government sponsored eviction. Soon the number of demonstrators grew and a revolution against the regime erupted.

Within days, a rally organised by Ceaușescu in Bucharest to reassert his authority and support among the population did not go as planned, his speech met by an angry crowd hungry for change.

The Revolution had reached the Romanian capital and quickly spread to other towns and cities.

When the army switched sides and joined the protests, Ceaușescu and his wife Elena fled Bucharest and were eventually arrested.

Their trial took place on Christmas Day 1989 on the orders of the interim government…

#50 crowdedelevatorfartz on 02.27.19 at 8:01 pm

You have to love the Newspaper Editors sense of humour.
The electronic version of the Montreal Gazette posted
THIS

https://montrealgazette.com/news/politics/snc-lavalin-paid-for-gadhafi-sons-debauchery-while-he-was-in-canada-report/wcm/22da305c-af4e-4e66-97bb-ea4110122f8e

Right next to the Jody Wilson Raybould story…..

I guess not everyone in Quebec loves SNC-Liberalan

#51 not 1st on 02.27.19 at 8:02 pm

This is just a little common sense tip for liberals desperate for votes. Maybe if you didn’t try to destroy the rest of the country you wouldn’t need to bribe people in Montreal to vote for you. Imagine actually putting in policies that helped the entire country and getting votes naturally. What a concept.

#52 Yanniel on 02.27.19 at 8:02 pm

My two cents Derek:

Open a Questrade account and depending on your risk tolerance by one of these ETFs: VGRO, VBAL or VCNS.

This is a very inexpensive way to invest given that:

1.) Buying ETFs is free at Questrade.

2.) VGRO, VBAL or VCNS rebalance themselves.

3.) You are in the accumulation phase so you won’t have to sell any shares; so you won’t pay any trade commissions.

Your only expenses would be the ETF MER (very decent) and the ECN fees (very tiny ones).

#53 Smoking Man on 02.27.19 at 8:03 pm

46 Tony on 02.27.19 at 7:47 pm
Re: #2 Smoking Man on 02.27.19 at 5:09 pm

I can just see the news captions after Trump steps down to avoid impeachment and the entire Trump family is behind bars for tax fraud.
…..

Not likely, watch the gloves come off now.

Trump wins. 2016
Clinton’s pay for document
Fake FISA warrants for spying
Commie gets fired
Special counsel is hired who gets trump friends purjary trap
Nothing on trump. Zero collusion just a witch hunt.

If anything higher chance Hillary goes to prison now that they have a new AG

I hear T2 got steam rolled today. Not a bad day.

#54 conan on 02.27.19 at 8:04 pm

Not sure about the sox detonation. The pressure put on JWR was in no way criminal. She has a pressure cooker job.

I am still waiting for a reasonable explanation on why the deferred prosecution agreement was not the way to go. The AG is supposed to factor in the ” public’s interest.”

Tons of jobs, pensions, suppliers, etc, should not be hurt by the executives who ran SNC at the time.

It’s easy to fine the company, and jail the guilty. Killing the company makes no sense.

#55 crowdedelevatorfartz on 02.27.19 at 8:07 pm

@#40 Fat Lady
“Caveman days are a comin….”

+++++

Did you eat Apocalypse2019?

Is that why we havent heard his paranoid ravings for a while?

#56 maxx on 02.27.19 at 8:16 pm

Colonel Slade put it very well indeed and Jody Wilson-Raybould, like Charlie, personifies integrity:

https://www.youtube.com/watch?v=2Tzg_S4NrRQ

#57 old gringo on 02.27.19 at 8:18 pm

My my, it’s interesting to see how many of these deplorable’s are trolling this Canadian blog!
And if they believe Trump is innocent, they likely still believe in the Easter Bunny!!!!

#58 dakkie on 02.27.19 at 8:23 pm

Real Estate SLOWDOWN in U.S and Australia! Negative Equity Crisis Approaching.

https://www.investmentwatchblog.com/real-estate-slowdown-in-u-s-and-australia-negative-equity-crisis-approaching/

#59 KLNR on 02.27.19 at 8:27 pm

@#30 Dolce Vita on 02.27.19 at 6:59 pm
#5 Sail away

Yet another Philadelphia Lawyer is born.

The insult was to Canadians with egregious and misleading information about their ability to pay. Blatant inaccuracy best known as “click bait” or did you happen to agree with them?

You see the difficulty here. You are trying to bend facts to justify your obsession with grammar.

Just admit you’re obsession and stop twisting matters and words to obfuscate your agenda.
_________________________________

Now now children.
Play nice or Garth will kick you out of his sandbox.

#60 Blogdog123 on 02.27.19 at 8:31 pm

Heard T2 squirming on the radio at 8pm (20h00) in both official languages, dodging all the questions saying his staff acted appropriately… If so, Mr. Socks, why did Gerald Butthead quit???

Reporters should have asked why all the secrecy for 3 weeks… So much for open and transparent gov’t… Sunny ways!!!

#61 Remembrancer on 02.27.19 at 8:35 pm

#28 not 1st on 02.27.19 at 6:46 pm
And its not against the law to look at WikiLeaks, everyone has done it. If its illegal go arrest Assange.
———————————————————–
Looking but not trafficking, its illegal to engage in espionage and/or publish illegally obtained data. If that doesn’t fly for you, he’s a fugitive bail jumper in the U.K. …

Arresting him is on hold currently as the invasion of Ecuador to do it is illegal as well…

#62 Smoking Man on 02.27.19 at 8:38 pm

DELETED

#63 JD on 02.27.19 at 8:40 pm

On this blog, I assume most all convinced, correctly, about the virtues of ETFs, whether as DIY-investors or working with advisors.

But I’m curious if folks here in fact handle individual stocks at all and if so: (1) what their age-range is, and (2) what percentage of their portfolio — roughly — is in individual stocks.

Anyone cares to respond?

#64 Yuus bin Haad on 02.27.19 at 8:41 pm

TwinkleToes continues to entertain (in both official languages).

#65 Alex on 02.27.19 at 8:50 pm

#25 “then fix your own clogged arteries and potholes”

Does fixing same potholes over and over again with cheerios really mean fixing?
Not far from fixing the clogged arteries in the hospital hallways…
Are you blindfolded? Taxation is theft when you get nothing or almost nothing in return in terms of service. Counting all together taxes we pay (income, hst, property etc.) government on average takes 50% of what we earn, they keep running the deficit. Who in the government has lost a job and/or suffered a pay cut due to poor performance starting with Mr. Selfie and down to lower levels of governmental employees (exclude contractors)?

#66 crowdedelevatorfartz on 02.27.19 at 8:53 pm

@#54 Conan
“Tons of jobs, pensions, suppliers, etc, should not be hurt by the executives who ran SNC at the time.
It’s easy to fine the company, and jail the guilty. Killing the company makes no sense.”
++++

The last time I checked .
A “company” is considered a legal entity.
A “person” if you will.
Thus if the Company is found guilty of bribery, corruption, etc etc etc.

IT ….should be punished.

As a warning to other companies that….
If you blatantly, repeatedly, continously flout the Laws of the land….
There will be serious, painful , repercussions.

I suspect that even if the Govt of Canada does it’s typical milksop, hand slapping, don’t do that again, type of sentencing……
It wont matter.
The US will be salivating at the Foreign Trades Act punishments to be meted out as well as millions of shareholders in class action Lawsuits ready to rip, nip and bulldoze SNC-Liberalan into the dustbin of history….where it so deservedly belongs.

#67 JD on 02.27.19 at 8:53 pm

@No74/Politico:

A different perspective on Venezuela:
http://johnpilger.com/articles/the-war-on-venezuela-is-built-on-lies

#68 Eco Capitalist on 02.27.19 at 8:55 pm

@#55crowdedelevatorfartz

Thanks for that. You win the internet today!

#69 not 1st on 02.27.19 at 9:13 pm

#65 Figure it Out on 02.27.19 at 8:45 pm

—–

Sorry govt jobs and take out window employment don’t register as good jobs to me. A country with true full employment would have a GDP approaching 3% or higher like the US has – ours is well under 2%. 100B in debt buys a lot of fake jobs it seems.

#70 yorkville renter on 02.27.19 at 9:17 pm

#53 – smoker – ok, I’ll bite… what’s a perjury trap?

also, what did Papadopoulos get convicted lying about?

#71 Risktopia on 02.27.19 at 9:22 pm

Cohen = big news.
NK talks = big news

But where is the news about the standoff between nuclear-armed Pakistan and India?

https://www.risktopia.com/2019/02/imran-khans-khrushchev-moment-as.html

#72 When Will They Raise Rates? on 02.27.19 at 9:24 pm

Perhaps the names “Jody Wilson-Raybould” and “Justin Trudeau” should have been mentioned in today’s blog… More relevant and much more likely to result in the fall of a head of state.

#73 DON on 02.27.19 at 9:35 pm

Yesterday National Bank and today. Not the big 5 but smoke is in the air. Why would Laurentian below not off 10% of its workforce.

Big miss for Laurentian Bank as profit drops 32% in volatile markets, 10% of workforce to go

https://business.financialpost.com/news/fp-street/laurentian-banks-q1-net-income-down-32-per-cent-to-miss-estimates-cuts-jobs?utm_medium=Social&utm_source=Twitter#Echobox=1551276695

#74 When Will They Raise Rates? on 02.27.19 at 9:38 pm

#71 Figure it Out on 02.27.19 at 9:16 pm

“Today’s testimony by this Cohen clown […]”

Trump promised he would hire only “the best and most serious people.” How many of them are in jail or awaiting sentencing?

Lieutenant General Michael Flynn – pled guilty
Rick Gates – pled guilty
Paul Manafort – convicted in one court, pled guilty in another, violated plea deal
Roger Stone – trying to surreptitiously unload a lot of tee shirts before they become factually incorrect, awaiting trial
George Papadopoulos – pled guilty, served his time

Cabinet?
Secretary of Health and Human Services Tom Price, fired after racking up $1 million in travel expenses in 231 days.
EPA Secretary Scott Pruitt fired while under at least 14 separate federal investigations by the Government Accountability Office, the EPA inspector general, the White House Office of Management and Budget, the U.S. Office of Special Counsel, and two House committees over his spending habits, conflicts of interests, extreme secrecy, and management practices.
Dr. Ronny Jackson?

Eh, the list just goes on and on. The BEST people. It would be funnier if these people were running a less important enterprise.

————

Show me the man and I’ll show you the crime.

Let’s look into the dems…

#75 DON on 02.27.19 at 9:40 pm

@ Nonplused

Yesterday you wrote about developer/politicians etc and I agree with most of what you said.

I came across an Aussie news article that stated the banks were limiting credit to developers. All building booms are over built. Builders need to build so they keep on building until the credit runs dry. I wonder where we are at in Canada after at 16 years of rampant building.

#76 HH on 02.27.19 at 9:40 pm

Regarding income tax: It really infuriates me that people making $80,000 get away with paying no income tax just because they have kids and get the child benefit. My income is half that and I have to pay income tax. This is grossly unfair.

#77 Casey on 02.27.19 at 9:49 pm

The problem, Jimbo, is that (unlike you) four in ten families in Canada pay zero income tax. And they all vote. Meanwhile the top 20% of income-earners cough up 70% of the income tax collected – and they’re a political minority
————————

Don’t forget about all the rich people who don’t pay taxes!!!!!!!!!!!

https://www.cbc.ca/news/business/zero-income-tax-high-income-canada-1.4087033

6,000 people with incomes of 100k or more (that’s ‘rich’?) had legal losses to offset against income. Total non-story. – Garth

#78 DON on 02.27.19 at 9:51 pm

Nice to have Jody around.

SNC is all over the news and will continue to be now that they are a target. Yes 8 months is a long time but the Liberals are now treading in minority territory.

This SNC thing is build and Trudeau and the cast of 11+ look corrupt no wonder they haven’t done anything with money laundering etc. All those fund raisers for the PM… Point is Trudeau is in a much different spotlight at the moment and so is his track record. I wonder what else he has managed to do on the wrong side of the tracks.

8 months till a fed election but this is no small affair. I am pissed they aloud this to happen nothing more than con men.

#79 Damifino on 02.27.19 at 9:58 pm

Sunny Ways are definitely in the rear-view mirror.

#80 DOn on 02.27.19 at 10:04 pm

#54 conan on 02.27.19 at 8:04 pm

Not sure about the sox detonation. The pressure put on JWR was in no way criminal. She has a pressure cooker job.

I am still waiting for a reasonable explanation on why the deferred prosecution agreement was not the way to go. The AG is supposed to factor in the ” public’s interest.”

Tons of jobs, pensions, suppliers, etc, should not be hurt by the executives who ran SNC at the time.

It’s easy to fine the company, and jail the guilty. Killing the company makes no sense.
*****************
https://www.macleans.ca/politics/ottawa/what-does-it-take-to-get-a-deferred-prosecution-agreement/

“The legal mechanism at the heart of the dispute surrounding Quebec construction giant SNC-Lavalin, the Prime Minister’s Office and former Justice Minister and Attorney General Jody Wilson-Raybould are remediation agreements. They were inserted into the Criminal Code in September 2018, and it’s clear that SNC-Lavalin expected to be able to make use of the mechanism to escape criminal prosecution for alleged fraud and bribery in Libya to the tune of tens of millions of dollars.”…

They didn’t get it cause their actions and the timelines reek like pure corruption. That’ the fact Jack!

#81 Eleanor Shellstrop on 02.27.19 at 10:08 pm

@#42 crowdedelevatorfartz

Good questions to ask. I also hate IG with a passion.

Derek, here’s my advice – read about investing so that you know enough to not get screwed over, because I’m pretty sure your IG “advisor” is screwing you over with that very low rate of return (3% over 5 years is TERRIBLE).

I would start with the Canadian version of Millionaire Teacher. It has great simple investing advice and cautionary tales on high-fee mutual funds – i.e. anything that charges around 2% or more – and Canadian Couch Potato, which has good model portfolios and lots of free advice.

And go through your IG accounts to see what your portfolio contains. Check out their performance on Morningstar.ca. I bet your IG “advisor” put you into high-fee mutual funds, which is the opposite of sensible index investing. As you will read about, basic index investing is a lot cheaper in terms of fees and your return will be MUCH MUCH BETTER than 3% over 5 years.

Also, here’s my IG story: When I was less educated about investing, an IG “advisor” (they’re just salespeople with barely any real qualifications) asked to manage my money, tried to make it sound like leveraging myself was his original great idea (HA!), and refused to tell me how fees worked. I told him thanks but no thanks, and that I wanted to educate myself first. Smart person that he is, he proceeded to berate me for not trusting him.

In hindsight, I’m glad that he was such horrible person with zero EQ. It made it that much easier to walk away.

Now, on the other hand, a pleasant smooth-talker from Edward Jones almost talked me into giving him the reins – to the tune of 2% of fees (OUCH!). Thankfully I came to my senses, told him I wanted to educate myself before entrusting him with my money…and I haven’t looked back since.

After your reading, you will know more than your IG advisor about smart investing. Good luck!

P.S. Your IG advisor does not have your best interests at heart. He only wants your money.

#82 NEVER GIVE UP on 02.27.19 at 10:19 pm

Regarding flat tax!

100 years ago all people were engaged in economic activity related to survival of the species. 80% were engaged in agriculture. And 20% were making Homes, chairs, trinkets and what have you.

Fast forward a hundred years and only15% of society is engaged in agriculture due to the unprecedented rise of machines!

What’s more is very few of us in North America are engaged in the making of homes, chairs , trinkets and the like!

the United States is still the most productive Nation per capita in the world due to automation assembly lines and the like. You can call it robotics but they don’t look like robots. They are simply canning machines that work at 20,000 cans per minute! Bottling machines that work at hypersonic speed! pallet shipping technology, container shipping technology. If anyone has ever seen a factory in a third world country or even China you will understand that they work largely through manual labor and much less through machines than we do here.

What to do with all the people we don’t need?

What to do with all those University graduates?

We could get them to dig holes with shovels and fill the holes back in again and call it work!

Or we could employ them and seemingly intelligent jobs by throwing them a tax code book that’s thicker than the Bible and turn them into an army of accountants and lawyers! Then make a simple law that forces all people to use the tax code and make it so complicated that no one can do it themselves. Therefore you have a system where you are spreading the wealth around through make-work projects.

Out of those hundred people in 2018 we have 40 of them engaged in productive work that actually makes something to eat or to use. And we have another 40% engaged in government work and accounting work things that do nothing productive in the material sense and is only partially productive in any sense whatsoever!i In the future expect that number to rise as AI takes over all of our jobs. With all the wealth that is produced without any effort the government will find a way to spread it around with many people doing busy work but not producing anything of value. The rest will be receiving welfare and pensions and other equalization payments.

In the end we’ll all be sucking on the public tit!

#83 David Driven on 02.27.19 at 10:20 pm

Trudeau in disgrace as a scofflaw, corrupt and a menace to our entire way of life and the subject is Trump? Now that’s bent.

Also in the news is how far fallen into infamy are the climate change crazies. Bill Gates no less came out swing and exposed it all as a fraud, but not a peep? Wow!!

https://business.financialpost.com/opinion/dont-blame-melting-ice-for-polar-bear-attacks-blame-a-bear-baby-boom

#84 Swiss Banker on 02.27.19 at 10:22 pm

Fed Chair Powell just basically laid out future returns for diversified ETF portfolios today.

Watch his testimony.

Expect 3-4% returns annually in those 60/40 ETF portfolios over the next decade.

And remember. Don’t spend it all in one place.

#85 DON on 02.27.19 at 10:29 pm

Katie Telford, PM chief of staff, offered to line up friendly media if Wilson-Raybould was worried about how abandoning prosecution of SNC might look. “If Jody is nervous, we would of course line up all kinds of people to write OpEds saying that what she is doing is proper.”

If this is true…wow. So it is confirmed manipulation is the preferred route (where’s the honour in Honourable?). All the dirty tricks in the book are being revealed.

Last post

#86 conan on 02.27.19 at 10:35 pm

Re: SNC

Maybe they already talked about the fine that needs to be paid. I would assume it’s going to be big.
If SNC balks at that then I agree with you guys. One can structure these fines in very interesting ways.

#87 The Limited Sage on 02.27.19 at 10:43 pm

Garth, thank you as always. Because you give away all this information for free, I’d be glad to make a donation to a charity of your choice if you have one.

It’s been a while since there’s been an update but I hope Bandit is doing well.

– Alan, the cop.

#88 Ex-Cowtown on 02.27.19 at 11:30 pm

Eh, the list just goes on and on. The BEST people. It would be funnier if these people were running a less important enterprise.
++++++++++++++++++++++++++++++++++++

You have a point. The very best people are too scared for their careers, reputations and their families and future to work for Trump. Even the mighty legal scholar Alan Dershowitz has been ostracized by his colleagues for stating that there is no collusion.

Democrats bullying, intimidating, shunning, spewing hate and racism and poisoning the well to harm the country is nothing to be proud of.

Not sure why you want to side with bullies. But it is your choice.

#89 fred graves on 02.27.19 at 11:33 pm

Garth’s words tonight below:couldn’t be truer, better stated, or more frighteningly inevitable -and it’s a great part the breakdown of our once wonderful, imperfect system:
” It’s an idea many people have backed over the years, but without traction. The problem, Jimbo, is that (unlike you) four in ten families in Canada pay zero income tax. And they all vote. Meanwhile the top 20% of income-earners cough up 70% of the income tax collected – and they’re a political minority. So any party bringing in a flat tax would be correctly seen as benefiting the rich (doctors like you) while penalizing $80,000 families who own houses, minivans and offspring and pay no net tax.

That’s because in order to work and raise sufficient revenues for the government, a flat tax would need to be as universal as possible – with only the lowest income groups exempted. Your taxes would decline from 48% to (say) 20%, and people paying 0% would also go to 20%. See what I mean? Rebellion.

#90 saskatoon on 02.27.19 at 11:43 pm

ironically,

alan the cop will never contribute (through taxation) to the cost of operating the very government that employs him.

#91 Terrie Rolph on 02.27.19 at 11:58 pm

“The problem, Jimbo, is that (unlike you) four in ten families in Canada pay zero income tax. And they all vote.”
I think the reasons people vote for whatever party they vote for, are more complex than this. I also think there is considerable evidence that most of the voting population doesn’t vote at all.

#92 Unhinged Trader on 02.28.19 at 12:02 am

The Teflon Don keeps eluding the Bohemian Grove crew and their little Deep State.

Looks like he just won his re-election.

#93 Vampire Studies on 02.28.19 at 12:13 am

79 HH – I think the statement “paying no tax” has
been greatly misinterpreted. I believe it should
read “paying no net tax”. These people do pay tax, but basically receive enough benefits that its a wash,
which actually makes sense. As a whole, our taxes go
to pay benefits and services. There will be a
“break even” point for each taxpayer where they are either a net payer or a net benefiter. I’ll retire in the
next few years and will transition from one to the other.
But I’ll still pay income tax.

#94 crowdedelevatorfartz on 02.28.19 at 12:34 am

@#75 Don
“Big miss for Laurentian Bank as profit drops 32% in volatile markets, 10% of workforce to go”
+++++

I guess the only difference between SNC-Liberalin and Laurentian Bank is when 350 of the Bank employees lose their jobs…..it wont be blamed on Jody…..yet….

#95 crowdedelevatorfartz on 02.28.19 at 12:37 am

@#73 Risktopia ( great name by the way)

Yeah.
When you have two nuclear powers ….sharing a border….shooting each others jets down….

Not good.

#96 crowdedelevatorfartz on 02.28.19 at 12:41 am

@#69 Eco Kudos

Nah.
You win the number of the day….

#97 crowdedelevatorfartz on 02.28.19 at 12:57 am

hmmmm.

I guess the leader of Venezuela is between a hard gold rock and a hungry place…

https://www.reuters.com/article/us-venezuela-gold-exclusive/exclusive-venezuela-removed-8-tons-of-central-bank-gold-last-week-legislator-idUSKCN1QG2QG

I wonder what bbq’d Maduro smells like….

#98 Sail Away on 02.28.19 at 1:00 am

#30 Dolce Vita

You may be right. I don’t feel like someone with an agenda but it’s possible.

In any case, regarding the 3 issues in today’s post: it’s surprising that most people have so little financial knowledge. Huge effort is put into learning a trade or profession, then decades of work, and almost no time learning financial strategy. And finances are an area where many, maybe most, of the experts are in it for themselves first at the expense of the suckers… whoops, clients. The easiest way to make money is to work directly with money- much simpler than trading some other product for money.

Each of the situations above has a straightforward solution. Good luck finding advisors accepting true fiduciary duty to tell you, though (sorry Garth, but it’s true). Teach yourself and reach financial freedom 5, 10 or more years earlier than expected. It’s worth the time. Not everyone has the interest.

#99 Boots on the ground in Ptown on 02.28.19 at 1:36 am

#69 Eco Capitalist on 02.27.19 at 8:55 pm
@#55crowdedelevatorfartz

Thanks for that. You win the internet today!
________&&&_&&__________&&&

You said it!
Laughed my arse off, you liked it crowdie!

It’s a good day all around I say, cheers from USA.

Ps those brief clips of Scheer demolishing t2 during question period are almost as good as crowdeds comment above for laugh material

#100 Big Al (Original) on 02.28.19 at 2:02 am

#54 conan on 02.27.19 at 8:04 pm

Not sure about the sox detonation. The pressure put on JWR was in no way criminal. She has a pressure cooker job.

I am still waiting for a reasonable explanation on why the deferred prosecution agreement was not the way to go. The AG is supposed to factor in the ” public’s interest.”

Tons of jobs, pensions, suppliers, etc, should not be hurt by the executives who ran SNC at the time.

It’s easy to fine the company, and jail the guilty. Killing the company makes no sense

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

I’ll agree with you when the average Joe who has committed a crime can also get one of those deferred prosecution agreements to avoid jail and a criminal record which will impair his ability to get a job. So SNC supports 50000 jobs? Average Joe supports his family, so why should the family suffer for his crime.

Also, current contracts would be honoured, so no one would lose their jobs tomorrow, they just can’t put in a bid for 10 years. And…is SNC the only company on earth that can do inftrastructure work? Where’s all that abundant and glorious competition the right always goes on and on and on about? I’m so sick and tired of the lies both spewed and believed about all these obviously rigged government bids/contracts from large infrastructure and IT projects right down to office supplies contracts. THIS is what is looting the taxpayer and the treasury.

#101 yvr_lurker on 02.28.19 at 2:24 am

T2 saying to the Chinese, “In our country the judiciary is acts independently of political interference and the decision regarding extradition of your Huawei executive must be made on the merits of the case”…. two-faced liar…. Today with Jody, we get a clear took through a window on how things really operate between the judiciary and politics when a certain outcome is desired (saving SNC Lavalin). I don’t see why an outcome would have been to go DIRECTLY after and prosecute the executives who were the backbone behind the bribes and corruption and hold them to account, tossing them in jail…. but allowing SNC Lavalin with hopefully a new management to not fold and lose all those jobs…

Anyways, although I did vote for T2, there is no way he has my vote next time. Just as corrupt as the rest of the lot, and is only concerned the optics. His most pressing accomplishment is that all the pot-heads can come out of the woodwork and smoke with impunity. Decriminalizing yes, but legalizing it was not what I wanted to see.

Hope the SNC affair haunts him for months…. Even Chantal Hebert, whose opinion I usually like, seems profoundly disappointed.

I think for the next election I won’t even bother to get off the couch… T2 no, Singh is an idiot, and will never vote conservative….might just throw it away on Greens

#102 BillyBob on 02.28.19 at 3:58 am

#5 Sail away on 02.27.19 at 5:28 pm
#84 Dolce Vita on 02.27.19 at 5:31 am
#63 Sail Away
Have a care with the minutiae:
https://i.imgur.com/JhFBVbM.jpg
Observe the 5th Circle of Dante’s Internet Inferno.
A mere 2 Circle’s away from its bowels.
———————————————–
Dolce,

No minutiae, I just find it ironic when someone insults the intelligence of others while using incorrect grammar, spelling or punctuation. My comment was meant as not-so-subtle skepticism about your capacity to judge.

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

Exactly.

Dolce should take a closer look at his own little chart, he fits nicely in both circles 2 & 3 with his constant posts.

Pot, kettle, all that.

#103 Howard on 02.28.19 at 4:43 am

#65 Figure it Out on 02.27.19 at 8:45 pm
“This is just a little common sense tip for liberals desperate for votes. […] Imagine actually putting in policies that helped the entire country and getting votes naturally.”

Lowest unemployment since 1976 not good enough for you? Who was Prime Minister then? Ooh, the irony!

————————————

We have President Trump to thank for that.

#104 NoName on 02.28.19 at 5:11 am

I cant wait to sea zizeks supporters going off the rails on april 19, soni center toronto.

https://youtu.be/LdtwgbHBTLs

#105 Rexx Rock on 02.28.19 at 6:04 am

T2 has no worries about this minor scandal.His good looks,charm and smooth talking will overcome this ordeal and this will just be a bad memory.He could actually admit this deed and say so what I did it,no big deal.It wouldn’t matter even though he screwed up on everything he’s done since being PM.Its sad but this is Canadian politics.

#106 DLee on 02.28.19 at 6:29 am

Response to: #63 JD on 02.27.19 at 8:40 pm
On this blog, I assume most all convinced, correctly, about the virtues of ETFs, whether as DIY-investors or working with advisors.

But I’m curious if folks here in fact handle individual stocks at all and if so: (1) what their age-range is, and (2) what percentage of their portfolio — roughly — is in individual stocks.

Anyone cares to respond?

——————————–

1) Age 39
2) 100% across 33 individual stocks. 25% held in USD. All holdings are large cap well known dividend payers with long history of dividend growth.

#107 MF on 02.28.19 at 7:06 am

#85 NEVER GIVE UP on 02.27.19 at 10:19 pm

What a weird, cynical, overly simplistic portrayal of human life and society.

To you only people who make widgets are productive and necessary? The intellectual pursuits you view as superfluous are largely responsible for the high standard of living we have in the modern world. Those extra people aren’t useless, they are now able to direct their energy to other things, like teaching, study, and services.

I know it feels edgy and cool on this blog to blame government for everything, but teachers teach the next generation how to think and innovate, police officers/army enforce the peace so we don’t have anarchy, and so on. Some government is required. Human history teaches us that.

I guess to some people entire societies can be boiled down to taxes. That is what you are saying right?

MF

#108 Trumpocalypse2019 on 02.28.19 at 7:44 am

Oh no, oh no, OH NO !!!!!

https://www.cnn.com/2019/02/27/politics/donald-trump-kim-jong-un-vietnam-summit/index.html

Trump walks away early from summit, while the Cohen grenade is still exploding at home.

The WORST possible confluence of events.

Trump is now growing desperate domestically and feels justified in pursuing military distraction internationally. But Kim has nukes.

Folks, this is not complicated. I am trying to help you save the lives of your loved ones.

Within a couple weeks we will have war. China will be involved in short order, so will Russia, Iran, India and Pakistan. Missiles will be flying over Canada and everywhere else.

BEWARE THE IDES OF MARCH!!!!!

PREPARE.

NOW!

#109 Tater on 02.28.19 at 7:48 am

#144 I’m stupid on 02.27.19 at 3:48 pm
#138 Tater

I guess you can’t read so

Many does not mean all, it simply means some. The point stands that they do own or control many shares. If one bank runs into problems it may mean the others will suffer as well. I wasn’t suggesting that problems would happen either. I was simply saying that in a country where the majority (meaning most, for those that can’t read) of banking activity is concentrated with only 5 major companies, deregulation against the advise of the banking regulator can be (can be does not mean it will be, for those who can’t read)suicide.

Shawn Allen responded without personal attacks unlike you. If I had to bet I’d say you’re an angry person, embarrassed of who you are and feel good personally attacking others online because that’s how you can feel like a winner.
—————————————————————
Nope, just annoyed by people who think they know something about finance running their mouths.

If bank stocks fall, the loss goes to the mutual fund holders. Your simplistic argument that a fall in bank share prices is systemically destabilizing because that loss falls on other banks holding their shares is simply wrong. People have pointed this out, the article you linked pointed this out, yet you continue to dig this hole.

And pointing out that a dumb post, matches a dumb user name can’t really be considered a personal attack. You very much did it to yourself.

#110 down and out on 02.28.19 at 8:01 am

Keep Jody quiet for 3 weeks till by election done ,now let all out thein open and transparent way before big budget gifts(more debt) so all will be forgiven and forgotten ,meanwhile use excuse saving Canadian jobs first 5000 now 10000 is not SNC position to do that ,WOW

#111 Renter's Revenge! on 02.28.19 at 8:06 am

#79 HH on 02.27.19 at 9:40 pm
Regarding income tax: It really infuriates me that people making $80,000 get away with paying no income tax just because they have kids and get the child benefit. My income is half that and I have to pay income tax. This is grossly unfair.

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

I think the scenario you’re describing is a couple who make $40,000 each, and they have two kids. The child benefit they get offsets the income tax they pay, so they “don’t pay tax”. If you had a kid you’d be in the same boat as them.

By the way, it’s not just Canada. Countries all over the world are practically paying people to have kids now. Birth rates are plummeting everywhere as people decide having kids is too inconvenient for them, or they think they have more important things to do with their lives, or women get educated and career oriented and decide that it is unfair that they have to use their bodies to make kids while men don’t, or whatever other reason they have. Regardless of the reasons, there won’t be a human species in a hundred years if we all decide to not have kids.

I think the risk is too many humans, not too few. – Garth

#112 Tater on 02.28.19 at 8:10 am

#63 JD on 02.27.19 at 8:40 pm
On this blog, I assume most all convinced, correctly, about the virtues of ETFs, whether as DIY-investors or working with advisors.

But I’m curious if folks here in fact handle individual stocks at all and if so: (1) what their age-range is, and (2) what percentage of their portfolio — roughly — is in individual stocks.

Anyone cares to respond?
—————————————————————-
100% of my investments are in an automated model-based portfolio. 15 different names at a time. Oh, and separately, stock in my employer that is awarded as part of bonus.

All of my wife’s investment are run by the asset manager that she works for in a collection of mutual funds. I’d say she’s 80/20 equities to bonds.

#113 Remembrancer on 02.28.19 at 8:21 am

#107 Howard on 02.28.19 at 4:43 am
We have President Trump…
——————————————————-
Huh? You mean massive job creators like Day 271 of the fake national security threats on Aluminum and Steel imports Trump Tariffs?
#TheNorthRemembers

#114 Remembrancer on 02.28.19 at 8:46 am

#112 Trumpocalypse2019 on 02.28.19 at 7:44 am
BEWARE THE IDES OF MARCH!!!!!
————————————————
I was wondering where the #DraftOurDaughters crowd went off to after the 2016 US election.

You realize that this quote is in regards to a wanta be dictator being disposed by a senate, with extreme prejudice, right?

#115 yorkville renter on 02.28.19 at 8:54 am

#63 – all my $$$ is in ETFs across all accounts (TFSA, RRSP, RESP and non-registered).

I don’t feel rich enough to carve out $$$ to pick individual stocks to make it worthwhile (maybe $20k+ I would guess?), nor do I want to invest the time to monitor / keep track.

My money is with a fee-based advisor.

#116 Remembrancer on 02.28.19 at 9:00 am

#116 Renter’s Revenge! on 02.28.19 at 8:06 am
or they think they have more important things to do with their lives, or women get educated and career oriented and decide that it is unfair that they have to use their bodies to make kids while men don’t, or whatever other reason they have.
———————————————————
Passive aggressive much?

#117 Baph on 02.28.19 at 9:02 am

Please make a post about melting down RRSP. This is a huge concern for a lot of younger people too who are hesitant to put money into RRSP now.

Then they are fools. I thought Mr. Google would eradicate moister ignorance. RRSPs are for tax-shifting, not retirement. – Garth

#118 Stan Brooks on 02.28.19 at 9:02 am

https://www.theglobeandmail.com/politics/article-wilson-raybould-testimony-snc-lavalin-trudeau-explainer/

In her opening statement, which ran more than 5,000 words, Ms. Wilson-Raybould described “consistent and sustained” political pressure from Mr. Trudeau and top officials urging her to settle the SNC case quietly by urging the Director of Public Prosecutions to reach a deferred prosecution agreement, or DPA, so that SNC could admit wrongdoing and pay compensation without a more costly trial:

For a period of approximately four months between September and December 2018, I experienced a consistent and sustained effort by many people within the government to seek to politically interfere in the exercise of prosecutorial discretion in my role as the Attorney General of Canada in an inappropriate effort to secure a Deferred Prosecution Agreement with SNC-Lavalin. These events involved 11 people (excluding myself and my political staff) – from the Prime Minister’s Office, the Privy Council Office, and the Office of the Minister of Finance.

No surprise that mr. socks and mr horse face/kill the small businesses/ are corrupted, lying individuals but that seems to be norm these days, based on the state of our democracy.

Of course not. Stupid comment. – Garth

#119 George on 02.28.19 at 9:09 am

For the “good” of the country and the “sake” of the Liberal Party Prime Minister Justin Trudeau needs to resign.

#120 PastThePeak on 02.28.19 at 9:16 am

Does anyone really think that this SNC affair will seriously harm the Liberals?

They will take a hit in the polls for a few months, but expect the absent minded Canadian population to have mostly forgotten this by election time. The thoughts then will be “what will Scheer do – we don’t know him well – perhaps best to stick with Libs who promise to do better – they clearly care more”.

As Garth says, it all comes down to electoral math (not just country wide pop vote). Liberals will still take most of Atlantic Canada, pickup seats in Quebec (maybe sweep it), perhaps get more in core Toronto and Ottawa if NDP fall back, do well in BC. Lose seats in 905, broader Ontario, and prairies. Still easily could be a Liberal majority if you ask me.

#121 Stan Brooks on 02.28.19 at 9:20 am

Of course not. Stupid comment. – Garth

Of course, all is good and we don’t need to worry about the full control of the economy by a few oligopolies, banks shifting risk to taxpayers for their ultra-subprime mortgages, lying real estate cartels, declining health care etc.

Political corruption is just the tip of the iceberg.

Get a dog, or a spouse, or a houseplant or something. – Garth

#122 Stan Brooks on 02.28.19 at 9:23 am

#125 PastThePeak on 02.28.19 at 9:16 am

These violations are subject to criminal charges accompanied with jail time for obstruction of justice.

In a banana republic corrupted politicians don’t go to jail.

Let’s see where we stand in a few months but don’t hold your breath.

#123 Alberta Ed on 02.28.19 at 9:28 am

When Sock Boy made his pathetic apologia following Jody’s detonation, I was reminded Monte Python’s limbless Black Knight: ‘Tis but a scratch.

#124 baloney Sandwitch on 02.28.19 at 9:32 am

If not, man up and self-invest. Make your Portfolio Great Again. – Great advice.
I fired my so called FA in 1999 – less than 100K in savings. Now have a portfolio of > 10 Mill. Can be done.
https://i.imgur.com/2OYeeZz.png
MO – Buy when blood is running in the street, including your own. Never sell.
Stay within your circle of competence.

Love your name. Baloney – Garth

#125 crowdedelevatorfartz on 02.28.19 at 9:49 am

@#112 Trumpocalypse2019

Where’s a hungry Fat Lady when you need her?

#126 IHCTD9 on 02.28.19 at 9:51 am

#96 Vampire Studies on 02.28.19 at 12:13 am
79 HH – I think the statement “paying no tax” has
been greatly misinterpreted. I believe it should
read “paying no net tax”.
_____

I think everyone essentially understands it. We all pay tax, many get it all back thru the CCB benefit.

Something else everyone should understand is that the CCB is primarily a monthly allowance for single mothers. The whole program aims for a decent single income while still paying out a colossal tax free benefit. Two working parent families get way less for the most part.

The libs themselves admit: “About 65 per cent of families receiving the maximum CCB amounts are single parents, of whom 90 per cent are single mothers.”

A scenario right from the federal government:

“Myriam is a single mother of two children aged 5 and 8. Her net income was $35,000 in 2016. Myriam’s family will have received $11,125 in tax-free CCB payments…”

Yowsers!!

I can already see how this will be abused to death.

How about a couple of single parents living together and keeping their cohabitation a secret? 22K+ per year tax free and all you need to do is shut your mouth and lie a bit? Who wouldn’t?

What about those economic families, or multi-families out there. What happens when those living arrangements suddenly go underground?

How about a single parent supplementing their work with under the table income to pump that CCB to the max? This is so easy these days it’s not even funny. In 2019 Canada, it’s a part time gig economy.

Can a single parent move here from somewhere else and cash in? I’ll bet there is a way.

When government starts handing out 5 figure cheques every year – certain folks will go to extreme lengths to get that kind of gravy. Even so far as having kids for no other reason than reserving a place for themselves at the trough.

#127 millmech on 02.28.19 at 9:53 am

#87 Swiss Banker
I have been hearing that story for a few years now, I guess a broken clock is right twice a day.

#754 Don
Let Laurentian drop another5-10% and start buying, pays a nice dividend.

#128 James on 02.28.19 at 10:16 am

#53 Smoking Man on 02.27.19 at 8:03 pm

46 Tony on 02.27.19 at 7:47 pm
Re: #2 Smoking Man on 02.27.19 at 5:09 pm

I can just see the news captions after Trump steps down to avoid impeachment and the entire Trump family is behind bars for tax fraud.
……………………………………………………..

Not likely, watch the gloves come off now.
Trump wins. 2016
Clinton’s pay for document
Fake FISA warrants for spying
Commie gets fired
Special counsel is hired who gets trump friends purjary trap
Nothing on trump. Zero collusion just a witch hunt.
If anything higher chance Hillary goes to prison now that they have a new AG
I hear T2 got steam rolled today. Not a bad day.
_________________________________________
First of all I was going to just say your an Old Man D!*K but then I thought about it and we have already established your credentials on this blog as the resident alcohol fueled jester. Even if any of the above is true or semi true the focus is on Donald J Trump and his lies. Since taking office, Trump has made 7,645 ‘false or misleading claims’. In October he said 1,200 things that were false or misleading, according to the Fact Checker database. Here go see for your self Old Man. Unless you don’t believe facts? FactCheck.org
Trump has surrounded himself with staffers that have been indicted, charged, and or convicted of illegal goings on whether they are related to Trumps presidency or not. Now think about this Old Man, to associate with such criminal minds means one of two things.
1 Trump knew exactly who he was getting into bed with with his staff associates and staff picks!
2 Or Donald J Trump is dumbest a$$ on this planet!
You pick Old Man! Its one or the other.
As of February 28th the Mueller Investigation has not concluded and is currently still an active case. You would be advised to not presume to know the outcome of an event which is still in progress. So as the saying goes, “it aint over until the fat lady sings”. So come back to us later Old Man when the entire case has been completed, then lets talk.
As for T2 the same applies eventually his dirt will stick to him as well just like the goofball south of us.
O tempora, o mores………………….

#129 Stan Brooks is a Kook on 02.28.19 at 10:20 am

#126 Stan Brooks on 02.28.19 at 9:20 am

“Get a dog, or a spouse, or a houseplant or something. – Garth”

You are to kind Captain Garth. How about telling Stanley to get a friggin life…

#130 Ena on 02.28.19 at 10:21 am

Some tips for that last person:
1) Like Garth says, mutual funds are extremely expensive and will likely one day soon not be tolerated by consumers. Over 30-40 years, their fees eat up HALF your investment gains. Why give your wealth manager 25% of your whole portfolio? So he can retire well and the bank can pay their shareholders more in dividends annually than you get in returns?
2) You could also go with a roboadvisor. They’ll charge ~0.7% whereas your mutual funds are likely 2-2.5%. Very big difference, that’s already about 70% cheaper per year.
3) There are online brokerages that are very good. This option means you are going it alone, but with a bit of reading, it’s not too scary – and you get to keep 95% of your investment gains, not 50% like with mutual funds. One online brokerage is Questrade. Zero commissions to buy ETFs. They rebate your transfer fee (note you’d have to sell the IG mutual funds so it’d be an “in cash” transfer and if the mutual funds have deferred sales charges (DSC) you’ll be on the hook for those, so it’s up to you to weigh whether to pull the bandaid and start fresh now or wait longer.
4) To educate yourself, I’d recommend Larry Bates’ new book, Beat the Bank. His career was spent with big banks, now he’s retired and educating Canadians about how to avoid being swindled. Well worth the read.
Hope some of this helps! It does NOT take a degree in Finance to manage your own investments – you could always start off with the Canadian Couch Potato portfolio (google it) then change your holdings as you learn more. You CAN break up with your advisor!

#131 n1tro on 02.28.19 at 10:25 am

#131 IHCTD9 on 02.28.19 at 9:51 am

“Myriam is a single mother of two children aged 5 and 8. Her net income was $35,000 in 2016. Myriam’s family will have received $11,125 in tax-free CCB payments…”
————————-
Oh snap….going to get the wife to pop out another one and “divorce” her. Change my address to my parent’s place. Alimony payments are tax deductible after all.

#winning

#132 James on 02.28.19 at 10:34 am

But you’re right. The banks are little better. Big, fancy, Porsche-driving portfolio manager dudes like those I work with might not be an economical choice, while robos are truly scary since you’re handing money to an algo. So be simple about it – ask your existing advisor to sell off the mutual funds and place you into a low-cost 60/40 ETF portfolio. If the old IG is really the new IG, this should be an option. If not, man up and self-invest. Make your Portfolio Great Again.
_______________________________________
Tried the self investor stuff when I was young and foolish after graduating from university I had money coming out of my derrière. My university friends and I all decided to start investing money to get rich quick. That did no go as I planned, apparently you have to spend a considerable amount of time and garner quite a significant amount of knowledge to be an investor. The rest of it is basically gambling and your odds are about as good as going to a casino. Well lets just say that’s why we have qualified professionals who do that solely for their profession and let the rest of us do perform our professions as we see fit. I still self invest but a small portion of my total just to stay in the game and educate myself about the enterprise of money management.

#133 AfterTheHouseSold on 02.28.19 at 10:54 am

#125 PastThePeak
“They will take a hit in the polls for a few months, but expect the absent minded Canadian population to have mostly forgotten this by election time.”

Except that the Vice-Admiral Mark Norman trial heads to court this August and will be in full swing as Canadians head home from vacation by September, a month prior to the October election.

Trudeau, Butts and Telford have recently been issued subpoenas over emails and texts they may have related to the case. The government appears to be stonewalling over getting access to his own notes so he can defend himself. (obstruction of justice?)

Norman’s lawyer is pushing to have the case dropped. This would be the most expedient way to diffuse another brewing scandal on the eve of the election. Don’t be surprised to see the case dropped.

If so, Vice-Admiral Mark Norman will rightly, have to be compensated for defamation of character, loss of income now and in the future. It will, and should be a princely sum. It won’t come out of the hides of the involved parties, including ‘star’ witness Brison. No, once again it will be the taxpayer. Bend over Canada.

#134 MHM on 02.28.19 at 11:13 am

Crazy high dividend increase by TD of 10% wow!

#135 mike from mtl on 02.28.19 at 11:16 am

#122 Baph on 02.28.19 at 9:02 am

Please make a post about melting down RRSP. This is a huge concern for a lot of younger people too who are hesitant to put money into RRSP now.
////////////////////////////////////////////////////////////////

Understand the rules on RIF and withdrawals, RSP is just a container with a bunch of tax rules attached.

Personally I have very little of my worth in RSP and only contribute accordingly because in my case it doesn’t make sense from a taxation point and is very inflexable.

My mother did the same mistake, of course back then only RRSP were available “registered” accounts for tax options. Plus the mutual guys loved them as containers for their ‘funds’. In her case she will be essentially paying full income tax anyway at higher rates then when contributing. And no the so called growth over those decades is not going to offset those taxes.

It’s hard to predict your future circumstances sure, but knowing the rules now understandably I don’t direct much towards RSP. There are reasons to make use of RRSP that’s for sure, but I’d not recommend it unless knowing full well all the details – with personal finances there’s a lot of crap and spin out there.

Only thing with non-reg is to be very careful of selling, only buy and hold no ‘active’ junk.

#136 IHCTD9 on 02.28.19 at 11:24 am

#135 n1tro on 02.28.19 at 10:25 am
#131 IHCTD9 on 02.28.19 at 9:51 am

“Myriam is a single mother of two children aged 5 and 8. Her net income was $35,000 in 2016. Myriam’s family will have received $11,125 in tax-free CCB payments…”
————————-
Oh snap….going to get the wife to pop out another one and “divorce” her. Change my address to my parent’s place. Alimony payments are tax deductible after all.

#winning
_______

Call up all your exes. Invite them over for some “fun”. Get them all pregnant. Then secretly cohabitate together and watch the bags of money roll in from all directions.

It would be like living at the playboy Mansion, and you’re Hef!

Only dif is all ‘da bunnies be pregnant 24/7/365!

#137 Dogman01 on 02.28.19 at 11:30 am

Derek

Just get out, discount broker then look at these ETF’s

ALL in One Fund Solutions VGRO & VBAL, XBAL, XGRO, pick one.

https://www.canadianportfoliomanagerblog.com/vanguards-hip-new-asset-allocation-etfs/

https://www.myownadvisor.ca/the-best-all-in-one-exchange-traded-funds-etfs/

When you have a large enough balance consider some smart guys like Garth’s.

#138 Malio on 02.28.19 at 11:38 am

While I love the blog and the info it provides, I’m still nowhere closer to choosing the right investment vehicle after reading it on a daily basis for a number of years. (This being the latest on investing that has left be confused) I have enough savings to max out TFSAs and more – I’m in a similar situation as Derek – but it seems like paralysis by analysis. Apparently, banks and robos are no good and I’m not rich enough for Turner Investments and other of their ilk to give me a sniff. So I should man up and invest…even though that would be an amateur hour move at its worst trying to navigate these waters. Completely frustrating.

ETF weightings for a beginner portfolio have been presented here a few times. Stop analyzing and Just Do It. – Garth

#139 dharma bum on 02.28.19 at 12:01 pm

T2 seems to have inherited any DNA associated with brain function and intelligence from his mother.
You must remember Maggie, no?
Crazy old Maggie.
On the other hand, the apple didn’t fall far from the tree when we see the arrogance of T2.
PET is the only guy that was even more arrogant than his son is.
“You say I can’t let SNC Lavalin off the hook? Just watch me!”

Just wach this:

https://www.youtube.com/watch?v=DeTsQQ22Uwc

#140 Ronaldo on 02.28.19 at 12:02 pm

#7 Deplorable Dude

R.E. Investors Group….I nearly got suckered in by them before I found Garth’s blog. Sucky high fee front end loaded mutual funds. Just as bad as the [email protected]
——————————————————————-
I was first approached by these dudes back when I was only 18 in 1964(72 now) and not having a PTPI at the time wasn’t able to invest with them. My next encounter with them was in 1986 at a time when I was finally making decent cash and able to stash some away.

At this point my only investment was my home and another rental property. I decided to dip my toe in the water and go with them via the RRSP route. Not knowing much about investing at the time I pretty much let them decide where to put the loot. He put me into bonds and mortgages 50/50. The front end fees were around 7% as I recall which covered his fee.

This seemed extremely high and I asked him how long it would take before I could expect to break even and he tells me 3 years. It was at this time that I started looking into investing in a serious way and started reading books and researching mutual funds.

One of the managers of the company I worked for recommended a certain financial management company located in Vancouver (mutual fund company). I quickly realized after doing research in this company that it was time to make a move from IG after only a few short months.

Fortunately, I had not invested that much with them so I swallowed the loss and made the move. This was the best thing I’d ever done and have never regretted the move to this day.

I have pretty much done my own investing since and this has worked out quite well for me. I retired at 54 and have since melted down all of my RRSP’s prior to age 71 and a fair portion now resides in non-registered dividend paying investments where I get the benefit of the dividend tax credit and much better tax treatment on my investments.

What I’ve learned over the years is that [email protected] is by no means a financial adviser but simply a sales person. They will place anyone into RRSP’s without regard to a person’s financial situation. RRSP’s are not for everybody and each individuals situation is different.

Financial advice is not something you are going to get from [email protected], your accountant, your lawyer or you BIL.

There are many things that come into play that requires an individual with the knowledge that is required to be able to develop a plan that is specific to your needs.

I believe that an individual such as Garth’s organization would be able to fill those needs. There is much more to estate planning than just the investment part. I learned the hard way.

Having followed this blog going on 10 years now has been one of the best learning experiences I have had. Thanks Garth for what you do. Bloody amazing.

#141 Deplorable Dude on 02.28.19 at 12:24 pm

#139 MHM..”Crazy high dividend increase by TD of 10% wow!l”

Awesome, that’s one of my holdings.

And for the person that asked about Blogdogs holding individual stocks, this deplorable follows the Tom Connolly method…100% Canadian quality dividend growth stocks, TD being a case in point.

4 of my 15 holdings have increased dividends so far in 2019.

#142 Does Anyone Know if... on 02.28.19 at 12:27 pm

Investor’s Group is owned by Power Financial? I see that Power Financial is a big investor in Wealth Simple, the AI fintech company. What a nightmare if WS were making use of the investment services of IG or having to use IG financial instruments. This is of course pure speculation – quite understand if this gets deleted.

#143 Enlightened on 02.28.19 at 12:39 pm

#37 , Exact Same Experience with IG….an expensive lesson but one well learned.

#144 LP on 02.28.19 at 1:26 pm

I’m on the hunt for a political party and its MPs who:

– will budget just like I do…if what’s coming in doesn’t cover what’s going out, I start cutting “wants”. If that’s not enough, I start shaving needs. Eventually it balances – annually.

– who will look me in the eye and tell the truth, even if I don’t want to hear it. Even if it might hurt me. Even if it paints me in a bad light. And even if they don’t want to say it, even if it hurts them. And even if it paints them in a bad light.

– who will treat others, not just Canadians but certainly all Canadians, with respect and honour. Who will keep our collective word, who will hold our international reputation sancrosanct.

– who will enact legislation that prevents principal secretaries and other functionaries from acquiring very much power within the upper echelons of government. They are not elected; why should they have any power at all? Usually they are faceless so how can we, the electorate, hold them to account?

I’ve got a few months to add to this list and, since I’ve got bags of time, I just might.

F71ON

#145 AfterTheHouseSold on 02.28.19 at 1:29 pm

#143 Malio
“paralysis by analysis”

Most banks have a broker service. For example at TD it is called TD WebBroker. To get started:

Take a deep breath, throw back your shoulders, act confident and enter the bank.

At the welcome desk or teller, tell the person that you would like to open a TFSA trading account. They will most likely begin the process of trying to erode your confidence by asking if you would like to see an advisor. This is a trap! This is THE single most important part. Maintain eye contact and say a firm NO.

(If you were to end up in an advisors office they will most likely further erode your confidence and steer you into the dead end, high fee, bank products called mutual funds. So don’t go there.)

Instead, tell the person that you’d like an appointment to see someone to open the WebBroker account. When you see that person, they may take another stab at steering you to an advisor by asking you about your level of trading experience. Remain firm.

Do not flinch, slump or show any sign of weakness. Tell them you are working with an experienced family member (instead of ‘none of your business’). Leave the bank, exhale, breathe deeply. Your account will be opened in a few days. Congratulations, you have taken the first step in breaking paralysis by analysis!

Now look on the blog for the ETF weightings for a 60/40 beginner portfolio as Garth stated. Someone may be able to provide links for you. Take your time, ask questions. You’ll be fine.

#146 JB on 02.28.19 at 1:33 pm

#2 Smoking Man on 02.27.19 at 5:09 pm

Quote of the year from Washington today.

“I lied. But I’m not a liar.”
……………………………………………….
Hell I didn’t know Donald Trump was in Washington yesterday?

#147 Dissident on 02.28.19 at 2:44 pm

#63 JD on 02.27.19 at 8:40 pm
On this blog, I assume most all convinced, correctly, about the virtues of ETFs, whether as DIY-investors or working with advisors.

But I’m curious if folks here in fact handle individual stocks at all and if so: (1) what their age-range is, and (2) what percentage of their portfolio — roughly — is in individual stocks.

Anyone cares to respond?

– – – – – – – – – – – – – – – –

38 y-o Female, married, home-owner. TFSA and RRSP self-invested through an online bank brokerage, across individual stocks and one whole-market ETF, with a focus on fin-tech, tech, saas, FAANG+M (minus Apple and Facebook, cause they suck lately). Waiting for Uber and AirBnB to IPO, and then wait and see. Staying far away from marijuana stocks and bitcoin ;)

Hint:
https://www.marketwatch.com/story/the-us-stock-market-has-now-split-into-the-haves-and-have-nots-2019-02-28

#148 Dissident on 02.28.19 at 3:08 pm

Also, I love that you’re mentioning how bad Investors Group is (cough ponzi scheme cough).

My sister gave them some of her money, to some dude who used to be a kitchen cabinet salesman before becoming “certified” to “advise” people on their investments. (Gotta love Linkedin). Hah. He tried the used car salesman, stir-the-pot schtick on me, insulted my investment knowledge (over my husband’s haha, sexist) and it didn’t work. I walked. His persuasion tactic was showing me a graph of the total stock market over 100+ years: “See, it always goes up”. Lol. Yeah, I can see that. I figured that with some real due diligence and research of my own, I could do better than whatever percentage he was guaranteeing to his other victims, I mean, clients. I personally know of another guy who became an “advisor” – he used to be a camera salesman. Sorry, but I will not be taking your advice ;)

Btw, Investors Group take your money and lock it away for 7 years before you can even withdraw any of it. They want to make sure you won’t run away. There’s a penalty for breaking that 7 year contract. If you ever hear something like that, run, don’t walk.

You can do better just by throwing your money in a whole market ETF. Boom, you’ve circumvented Investors Group’s “management fee” percentage. That takes zero skill or research. And newsflash, Investors Group uses robo advisors themselves, so what you really have here is a layered bunch of baloney on top of baloney, because the guy who is trying to sell you on his ‘services’ is using the same robo advisor services that you could too, minus his ‘advisor fee’.

#149 AGuyInVancouver on 02.28.19 at 3:19 pm

Is anybody else interested in hearing Garth’s thoughts on Jody Wilson-Raybould, from one maverick to another?

#150 IHCTD9 on 02.28.19 at 3:28 pm

#116 Renter’s Revenge! on 02.28.19 at 8:06 am

—–

You are correct. Roughly 107 out of 195 countries on the planet are below replacement. Just about every country above replacement is not a place you’d want to start a family actually – weird.

I do a lot of reading on this stuff, and if I had to nail down the most significant change that has lowered Western fertility, it would be the rising independence of Women.

It’s not that Women don’t want to have kids – it’s all the hurdles and delays. Education and Career on its own can easily punt a Woman right into her 30’s before marriage is even on the agenda.

Then, finding a Man who is eligible for marriage has never been tougher. Women have not changed in some areas, one of these is the attitude towards “marrying down”. Marrying a Man who brings less to the table as far as assets, education, career, and income is just as unpalatable today as it ever was. While Women have been rising, Men have been falling – the unfortunate math leaves only a small pool of Men that tick all the boxes in the eyes of a well educated, gainfully employed, Western Woman who wants the same (probably more actually) in a mate.

The above ties in perfectly with a few interesting studies. Long story short: Women find only about 20% of all Men physically attractive. Women essentially set a bar for minimum attractiveness, and then other more pragmatic factors play a strong role in the decision like education, career, income, power, social value, etc. This means if a guy just squeaks by in the looks dept, he may still gain favour over a better looking dude if he has a Phd and makes 500K/yr, while Mr. hot’n’sexy flips burgers for a living. You can see clearly how a thoroughly average dude might fare in this scenario.

Not to pound the issue too hard, but on top of all of this, there is the issue of Women being demonstratively racist when it comes to choosing partners. Sounds bad, but what can you do? This has been observed incidentally, and tested with purpose multiple times with pretty much the same results. With little exception, all Women prefer their own race, but outside their own race, there is a well defined hierarchy that is shockingly identical no matter what race of Women you are looking at. The result is an excess competition among all flavours of Western Women for a certain flavour of Western Man. Availability drops again.

Heaping more burning coals on the fertility rates is the politics and technology of modern dating. As Women become more aggressive in pursuing the shrinking pool of eligible Men, said eligible Men eventually know it. This causes a reluctance to commit and settle down. This has been seen anywhere where a significant sex imbalance exists, the high demand sex gets picky, and reluctant to tie the knot, they like all the attention, commitment can wait.

The typical Western Woman can easily blow 5-10+ more years trying to find “Mr. right” before she realizes it’s probably not going to happen unless she “settles”. At that point she’s already on the fertility down slope, and perhaps old enough to just accept her circumstances and make the best of it.

This will keep on going frankly, until another group that places a higher value on family and kids comes along and out breeds them, gains control of government, and installs their own values. Think of the Hispanics in the USA, they’re probably the future of the USA for this very reason.

#151 Dissident on 02.28.19 at 3:44 pm

#116 Renter’s Revenge! on 02.28.19 at 8:06 am

or they think they have more important things to do with their lives, or women get educated and career oriented and decide that it is unfair that they have to use their bodies to make kids while men don’t, or whatever other reason they have.

– – – – – – – – – – –

Yeah, God forbid women get an education and a career instead of popping out a dozen kids by age 30. You know, those basic, important things that allow them to invest spare capital for their retirement *EYEROLL*

Not your life, not your business.

#152 Piet on 02.28.19 at 3:46 pm

@#105 yvr_lurker

“I think for the next election I won’t even bother to get off the couch… T2 no, Singh is an idiot, and will never vote conservative….might just throw it away on Greens”

Good idea, although not necessarily thrown away. Maybe you can help in getting a lower mainland colleague for our Green MP from across the Salish Sea. Voting Green comes with the benefit of feeling no responsibility or guilt over the devious machinations or buffoonery of whatever party happens to be in power.

#153 jess on 02.28.19 at 4:03 pm

=too big to fail ? moral hazards?

Too big to fail” taught Americans something about finance and big business. Today, it is a lens through which we look at the world. It allows us to think about questions like, “Is Facebook too big to fail?” It helps us consider the roles that massive companies and institutions play in our society.

https://www.investopedia.com/terms/t/too-big-to-fail.asp

https://en.wikipedia.org/wiki/Too_big_to_fail
gm effect
https://business.financialpost.com/category/news

https://www.bloomberg.com/news/articles/2018-12-10/decades-of-growth-at-risk-as-car-sales-in-china-continue-to-drop

Under the Chinese government’s “Made in China 2025” industrial master plan, the number of industrial automatons operating in the country would expand tenfold to 1.8 million units by 2025, when up to 70 per cent of the robots used in China would be made in the country, from half in 2020, and 30 per cent now.
=================
gm effect -electric cars

Tesla starts community college courses to train technicians – Phys.org
https://phys.org › Technology › Business

Mar 26, 2018

https://business.financialpost.com/category/news

#154 NoName on 02.28.19 at 4:29 pm

Now that we did touched on a spelling, grammar and intelligence (what i lack) topic, i just found out that people can (an average) type 30-40 words per min, speak 120-150 words a minute and what is surprising they can think up to 1200 words a min.

Now i am wondering how much more efficent in typing you can be if you disregard spelling gramara and all those capital letters, dots commas and exclimation points.

side note

In an average day person can have 30k to hight as 80k toughts per day, sciense, sad if you think less you are happier, imagine that…

#155 LP on 02.28.19 at 4:54 pm

#145 dharma bum on 02.28.19 at 12:01 pm

Find humour in mental illness, do you?

F71ON

#156 Been There Once on 02.28.19 at 4:56 pm

#151 AfterTheHouseSold :- I had that happen to me once while out of my hood. Stopped into a branch that looked like the WH in a better part of town. I met the greeter for a simple transaction, and was walked into a room meeting an advisor. It was all about rolling some loot for another 30 days on deposit, and when she saw the amount her eyes were rolling. She had other ideas for my money, but played her like a fiddle, because in the end she knew nothing.

#157 Midnights on 02.28.19 at 5:32 pm

#128 Alberta Ed on 02.28.19 at 9:28 am
When Sock Boy made his pathetic apologia following Jody’s detonation, I was reminded Monte Python’s limbless Black Knight: ‘Tis but a scratch.
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Lmbo that was good…