Better than never

Life doesn’t always go according to plan. Then, one day, too late. No time to recover. Too old to advance. Too little tucked away. Aging sucks. There’s no defence. “I’ve been reading you for years while recovering from some hits from job loss, death in the family and illness,” Ann writes me. “Now hubs (70) and I (64) are trying to figure out what to do next. “

Money won’t turn back time, but it sure makes the days more comfortable as they fly past. Let’s see if we can help her.

“He still works full-time and commutes nearly an hour each way. An unexpected chronic illness took me out of the job game 2 years ago. We have $55,000 in RRSPs and a mortgage of $150,000 (home valued at about $250,000). Debt of $30,000+-. His salary is expected to be about $90,000 for the next few years. He hopes to stay full-time til the end of 2021 and then work part-time for 2 years if his health holds.

“His OAS is $600 (although he will only see about $40 of it after tax this year), his CPP is $840. My CPP is $400. Debt pay down is our focus and we are hoping that $30,000 will be paid off by the end of this year or early next year (there’s a sales and commission component to his job, so hard to know exactly what it will be). Our projection is having no debt but the mortgage when he retires, and about $120,000 in savings/TFSAs plus the $55,000 in RRSP’s. Mortgage will still be around $130,000 and currently the monthly payment is $760 – far cheaper than even a one bedroom crack shack rental. It’s up for renewal in 2022.

“Not sure what to do with the RRSP’s or saved cash, other than switching it to TFSA’s so withdrawals aren’t counted against GIS, which sadly, we will qualify for and will  need. Would love thoughts about how seniors who aren’t going to be retiring with hundreds of thousands have managed. Thank you, Ann in Anticipation”

First, a word on how badly most people have managed their finances. According to StatsCan, the average after-tax senior income in 2016 was a lousy $27,600, of which the lion’s share ($17,700) came from the government. For senior couples, the total income was $58,300, with about $28,000 in government transfers.

What does this tell us? Three things. (a) Corporate pensions are scarce, inadequate and piteous for most people. Those group RRSPs run by some fruity life insurance company just don’t cut it. They provide a false sense of security, then fail to deliver livable savings. (b) Nobody can make it on public money. Those programs were never intended to support people, just supplement. And (c) we’re saving and investing too little. Obviously. The stats are regularly published here. Four in ten are one paycheque from disaster. And an equal number pay no income tax. How is that sustainable as a society?

Back to Ann & hubs. Hubs is commuting like a fevered 30-year-old and if he gets sick, they’re screwed. The best-case scenario is as Ann presents – pay down debt by retirement, save another $120,000 (sounds ambitious) then maybe find part-time employment. In that instance their government income of $1,840 a month could be augmented by investment returns of $875 a month (6% on $175,000) for a total of $32,580.

To accomplish that, almost all of the savings need to be stashed into TFSAs, so the income stream would not affect the pogey payments. No GICs or high-interest savings accounts, either. The money would have to be invested in an ETF-based portfolio providing reasonable growth. Or they will run out.

Doable? Of course. Maybe. If he holds out. If the car doesn’t die. If he keeps the job and isn’t the victim of an ageist Millennial (ageism is the only discrimination still freely tolerated).

What of the house?

Well, it doesn’t cost $760 a month. Add in property tax and insurance (at least $300) plus the equity of a hundred grand generating nothing (a cost of $500 monthly), and the real estate has overhead of $1,560 (plus maintenance). That amount might rent you a better place in the hood. Have you researched it, Ann?

The key point about the house is debt. The mortgage is $150,000 now and will need to be renewed in three years, possibly at a higher rate. Given your low retirement income, odds are one of you may die before it’s retired. If you sell and add the hundred grand to your portfolio, overall income will increase to just under $40,000. Still no picnic, but your debt will be zero and you’ll have $275,000 in liquid assets to help deal with whatever life throws. Renters? Yeah. But owing nothing and having liquidity are big plusses as the clock moves forward.

No recommendation here, Ann. You and your husband have had six decades to prepare for this time, and the paths forward are now limited. If the house is more important than increased income, freedom from debt and liquidity, so be it.

Thank you for making others think. May your choices be wise.

About the picture...

Bandit read of several requests for an updated selfie. Here he is on his fav dock, by the salty sea, awaiting spring and feelin’ wolfy. A few months from his 14th birthday, each day is a gift.

146 comments ↓

#1 Jimmy on 03.08.19 at 4:26 pm

Don’t be cranky.
I’m just experiencing this experience differently than you’re experiencing it.

#2 Dustin on 03.08.19 at 4:35 pm

Bandit, so stoic, can someone please tell me how to achieve the state of mind that bandit has achieved?

#3 Brian Ripley on 03.08.19 at 4:39 pm

I updated a few of my housing charts today… 6 biggest cities in Canada, the Plunge-O-Meter… but the chart that seems prophetic at the moment is my single family detached prices in both CAD and USD with overlay plots of USD/CAD and WTI Oil prices: http://www.chpc.biz/canadian-housing-in-usd.html

It’s notable that when USD goes up and Oil prices drop… housing prices drop as well.

The inverse also manifests, but it is the former that seems to be playing out now.

#4 Bobby on 03.08.19 at 4:45 pm

Governments are much to blame for this mess. They are elected continually on the premise everything will be free because someone else will be paying. Governments promise the electorate they will be well looked after.
Given those promises many with little income have some of the highest expectations. Those of us on the higher income scales, the ones paying the bulk of taxes, realize that we have to look after ourselves, there is no free lunch.
Just watch for the promises in the impending budget as Trudeau’s government struggles to get the-elected this year.
Nothing will change until governments are held to account.

#5 Mohammad Omarkhail on 03.08.19 at 4:52 pm

Garth love you bro. But what about Andrew Scheer and his offensive pizza gate and Hilary Clinton foundation comments.
Scheer says he didn’t hear question about Clinton ‘pizzagate’ lie during town hall
https://www.cbc.ca/news/politics/scheer-pizzagate-townhall-1.5048256

#6 Tulips on 03.08.19 at 4:53 pm

“They have negative net worth at the moment, with the mortgage and loan greater than their equity and savings.”

Is that a typo or am I missing something?

#7 Mike in YYC on 03.08.19 at 4:55 pm

Thanks for the Bandit selfie. Such a handsome canine. I do wonder however how he doesn’t slide off the left side of that photo with the angled horizon. ;-)

Keep up the good work Garth!

We were thinking about International Women’s Day. – Garth

#8 DON on 03.08.19 at 5:09 pm

I know moving is a pain, but get out of the housing market while prices are still high and there are still greater fools around. Get rid of the stress – move closer to work for now (rent) save then move again when fully retired. Life’s too short to live with the stress.

#9 Sorry to say on 03.08.19 at 5:12 pm

For all those home humpers that thought they would make millions from real estate going up 10 or more % y/y, reality is about to set in.

Like #4 Bobby, governments are to blame for selling things out and creating a race condition to a non believe finish line on home prices. The same goes for Sydney, Paris, London, San Fran, New York, Cape Town and others. The locals in all those cities thought they had to buy or lose out forever as foreigners invaded and hoovered up their homes.

With all the taxes now in play in BC and more yet to come (AirBnB commercial tax), we can now safely say the government has acted. The only thing left to happen is for the government to cut half of their staff loose and to become more productive on fewer tax dollars.

#10 I can't take it any more on 03.08.19 at 5:18 pm

Dress Up has done nothing but apologize to everyone since taking office. How the parties can take those apologies with any sincerity is beyond me. I hope the next prime minister apologizes to us – the citizens – for having ever allowed him to get into office. I predict a future controversy questioning how sincere these apologies actually were/are. I think we need to back him up against a wall so he apologizes for cutting our TFSAs and other personal finance atrocities to Canadian kind.

#11 Barb on 03.08.19 at 5:27 pm

Lovely pic of Bandit.

Better than ever.

#12 Dissident on 03.08.19 at 5:28 pm

Why. Why, Elizabeth Warren? I sure hope that Bernie Sanders doesn’t try the same thing, cause I want him (or someone as qualified) to win.

https://www.bloomberg.com/news/articles/2019-03-08/elizabeth-warren-imagines-big-tech-after-the-breakup?srnd=premium-canada

Just because you’re a Democrat or a Democratic Socialist (all good, carry on) doesn’t mean you need to be anti-economy, Liz! I honestly feel like that would torpedo the current US stock market and economy in general.

It’s the most bizarre and ridiculous thing I’ve heard so far in this election. Like, why. There is no *need*. Everything’s going just fine without it! Leave it alone.

Purposely creating inefficiencies in corporate entities is NOT going to create a better economy. By the looks of it, it’s pretty great as is.

Also, Happy International Women’s Day. Woot.

#13 Captain Uppa on 03.08.19 at 5:28 pm

Sometimes I wish I had the courage to rent. However the housing cartel (including family and friends) have really beaten home ownership into my head; it’s like cocaine!

If anyone found themselves in a similar situation like me and broke out, I’d love to hear from you.

#14 Yanniel on 03.08.19 at 5:30 pm

Lovely canine.

#15 Mean Gene on 03.08.19 at 5:36 pm

The downside with the elimination of mandatory retirement at 65, about 30 years ago.

Back in day, everyone knew they were being punted out of workplace at 65 and made certain the personal financial house was in order, now, people dick around thinkung

#16 JSS on 03.08.19 at 5:44 pm

Notable Canadian dividend increases:

Canadian Natural Resources (CNQ): +12%
Canadian Western Bank (CWB): +3.8%
Enghouse Systems (ENGH): +22%

#17 Braj on 03.08.19 at 5:45 pm

What a freaking ball of love he is

#18 Bob Dog on 03.08.19 at 5:46 pm

Why have all the pensions disappeared? Where did the labour unions go?

The government has failed us. Bank and corporate profits are at record high and the middle class no longer exists.

Can we start building guillotines now?

#19 The Wet One on 03.08.19 at 5:50 pm

For the person blaming the personal financial situation of Canadians on the government early, err… You’re almost completely wrong.

Yes, the government makes it harder or easier for people to take care of their finances.

Nonetheless, the primary responsibility for one’s personal finances, always was, always is and always will be personal.

Nothing any government does changes that calculus. Even in a communist system (do you think the social climbers in the Communist Party didn’t have an eye on the benefits they’d get through climbing up the party ranks? Don’t be dumb).

Anyone who failed to get the memo (and apparently there’s lots of them) that this is the case, well, they failed to simply open their eyes or alternatively read just about anything that’s out there.

Government tries to make sure to make sure you don’t die of starvation in a ditch, and not that hard, but beyond that, you’re on your own.

If you end up by your own folly eating cat food at the homeless shelter in your old age, that’s almost entirely on you. The government’s only fault in the matter (if any) is that they don’t fund services better so you can afford some canned tuna and maybe some stale crackers instead of cat food.

#20 Leo Trollstoy on 03.08.19 at 5:51 pm

How does a man continue work at 70 years old, earning $90k a year and have nothing?

What a failure

#21 Wallflower on 03.08.19 at 5:55 pm

They won’t get the renewal. They simply may not qualify…

#22 AnOldGuy on 03.08.19 at 6:01 pm

#13 Captain Uppa

It simple GROW a PAIR and tell the Concrete Huggers and Brick Lickers to take a hike…..

#23 saskatoon on 03.08.19 at 6:01 pm

a plethora of immoral geriatric commies.

disgusting.

#24 Victoria Real Estate Update on 03.08.19 at 6:02 pm

# 54 Vampire Studies (from yesterday)

“Now I do not know the East Saanich market at all, but is it possible that this drop is at least partly due to a radical change in the sales mix?”

*********************************

Saanich East
Single Family Home – Average price change (%)
Year-over-year

2019:
February: prices down – 21%
January: prices down – 14%

2018:
December: prices down – 14%

(Source: Victoria’s R/E board)

I like how realtors operate. During the bubble price run-up any commenter on here who mentioned anything about the sales mix perhaps distorting the reality of how much prices had increased was immediately attacked by an army of angry realtors who spewed realtor venom and ridiculed that individual for even mentioning the sales mix.

Now as prices are falling, realtors (we get it, Vampire, you’re NOT a realtor!) suddenly think that a “radical change in the sales mix” is distorting the average price stats, exaggerating the actual price decline.

At least one Canadian real estate board has done the same – after not mentioning the sales mix even once as the bubble price run-up was happening.

Saanich East appears to be leading the way in terms of Greater Victoria’s SFH price correction. It won’t be long before all other areas of Greater Victoria will also be showing significant year-over-year price declines. Indeed the local board’s average price stats indicate that this is a widespread trend.

200 years of world housing bubble history shows that all housing bubbles experience the same basic fate – first sales tank, then prices fall. And prices keep falling until they reach the long -term mean. The long-term mean is the price level where that city’s long-term price to income ratio is restored – and prices almost always overcorrect beyond this level.

If any realtor thinks the sales mix argument is suddenly legit now that prices have stopped rising and are indeed falling – perhaps you should proceed by proving that there has been a change in the sales mix. You’ll need to use verifiable stats from a reliable source. And your (biased) realtor “knowledge” doesn’t count.

Regulars of this blog may remember how realtors attacked those who mentioned the sales mix when prices were rising. I’m not saying that other commenters should do the same to those who mention the sales mix now that prices are falling. But I’m not saying they shouldn’t either.

#25 Nothing Surprises on 03.08.19 at 6:06 pm

Mortgage $150,000 and currently the monthly payment is $760 – far cheaper than even a one bedroom crack shack rental. It’s up for renewal in 2022.
_____________________________________________

If you insist on keeping the house you could probably renew in 2022 at a lower monthly rate then $750.

I have an existing mortgage of $150,000 with monthly payment of $620. It’s doable if you search and negotiate. Lenders are becoming more competitive.

On the other hand, they may be refused renewal. – Garth

#26 SmarterSquirrel on 03.08.19 at 6:10 pm

I rent in a nice part of Toronto. The house across the street from me (half a house really, it’s a tiny semi detached) just sold for $1,200,000. It’s got three bedrooms, 1 bathroom, a finished basement and no garage. I figure with a 25 year mortgage and 20% down and 3% interest rate, that’s a monthly of $4543. The down payment of $240,000 results in a missing annual cash flow of $12,000 or $1,000/month that could have been gotten with a 5% dividend yield. Heating, water bill and owners insurance is easily another $200 a month and property tax is probably over $500/month. That’s $6,243/month before considering any maintenance.

I rent happily directly across the street in a semi detached three bedroom 2 bathroom home with a garage but I can’t use the basement as there is a nice couple of tenants down there who bring up some nice baked treats or gives me some nice beers every now and then in return for me having walked their friendly little dog when they’re out. I don’t have to pay for heat or water, that’s covered by the landlord. I pay $2,650/month. I save $3,593 more a month on housing cost than the folks directly across the street from me which goes into my investment portfolio and has grown large enough over the years to pay for my rent with proceeds from dividends.

I get to enjoy the exact same neighbourhood in a very similar home for less than half the monthly cash outlay.

Nothing wrong with renting. Nothing at all.

#27 renter in Surrey on 03.08.19 at 6:16 pm

RE: #20 Leo Trollstoy

He was probably taken to the cleaners by ex-wife.

#28 Bill Grable on 03.08.19 at 6:18 pm

Seeing Bandit, lying overlooking my beloved Lunenburg Harbour was wonderful.

Give him a scratch for us.

He sure is a beauty.

#29 BC_Doc on 03.08.19 at 6:21 pm

Good point regarding the ageism thing Garth. Number One son is finishing a computer science degree. I’ve spoken with him already about planning on having a very limited shelf life. Salaries are high but he knows he’ll have to save and invest agressively.

The NYT had a good fun article on aging in the tech world this week. I’ve attached the link for those who are interested. I think I need to quit medicine and open one of these retreats!

https://www.nytimes.com/2019/03/04/technology/modern-elder-resort-silicon-valley-ageism.html

#30 mitzerboyakaQueencitykidd on 03.08.19 at 6:22 pm

Old dogs children and watermelon wine
a balanced money investment thingy and you’ll be fine

#31 Midnights on 03.08.19 at 6:24 pm

Oh, Trudeau is so, TOAST!

https://www.theglobeandmail.com/canada/article-liberal-mp-celina-caesar-chavannes-says-she-was-met-with-hostility/

#32 Damifino on 03.08.19 at 6:24 pm

Now you know the hardest part of Garth’s job: Breaking difficult news to good people who simply didn’t expect the decades to melt by as fast as they have.

There are so many. I know people still working full time with seventy just around the corner. Some have all their net worth in a house (if they’re lucky) and many claims upon that wealth the very day it becomes liquid.

That day will be traumatic since more than just equity is tied up within those dry walls. A great deal of self worth is (mistakenly) contained within and nary a scrap of other savings exist.

So disturbingly shortsighted.

#33 Party on Garth on 03.08.19 at 6:32 pm

Great photo of Bandit Garth. He looks content.

#34 earthboundmisfit on 03.08.19 at 6:37 pm

Best AOC nickname yet: Chiquita Khrushchev

Runner up: Alexandria Occasional Cortex

#35 Penny Henny on 03.08.19 at 6:47 pm

#134 Jimmy on 03.08.19 at 4:12 pm
Last!
//////////////

Jimmy you gotta work on that last thing.

#36 Doc on 03.08.19 at 6:57 pm

You forgot to add in her OAS which at 64 is a year away. That may add another 600 per month.

#37 akashic record on 03.08.19 at 7:01 pm

On the other hand, they may be refused renewal. – Garth

Could they be refused for higher monthly rent?

#38 Red_falcon on 03.08.19 at 7:05 pm

Bandit is the best! Just like DIY investing is the best! A little bit of forethought for investing is truly the way to go here. Those who know compound interest benefit from it. Those that don’t, may it.

#39 Red falcon on 03.08.19 at 7:06 pm

Typo.. Meant to say pay it, not may it lol

#40 Remembrancer on 03.08.19 at 7:12 pm

#6 Tulips on 03.08.19 at 4:53 pm
“They have negative net worth at the moment, with the mortgage and loan greater than their equity and savings.”

Is that a typo or am I missing something?
————————————————————–
Based on available information:
We have $55,000 in RRSPs and a mortgage of $150,000 (home valued at about $250,000). Debt of $30,000+-.

Debts Equity Savings/RRSP
———— ————- ——————
+ $ 55,000
-$ 30,000
+ $100,000
-$150,000

Equity is trapped in residence so looks nice on a balance sheet but you can’t buy lunch with it (just say no to HELOC to buy lunch or anything else), which is why I personally don’t factor expected sale price of primary residence unless I’m actually selling the primary residence…

As any other cash savings or liquid assets aren’t explicitly called out, its unclear how much of future savings is built on current assets and how much is aspirational / hoping for the future savings to actually occur hence the negative net worth assessment…

#41 Smartalox on 03.08.19 at 7:15 pm

I think that there are a lot of people who will tell you that ageism works ‘the other way’, too. Probably everyone can recall a point in their career where they were told ‘we’ve always done it this way’ or ‘you’re making the rest of us look bad’. I recall early in my career, (I was 25, fresh out of school) working on a contract for a government-owned utility. I completed my assignments in less than half the time compared to my 50- and 60-something colleagues.

The boss liked my work just fine, but I had to ask him not to compliment me in the open office, because of the negative feedback I got from the people that I worked with. I was excluded from meetings, had credit taken by others for my work, and was generally treated poorly by my coworkers, who felt very much like I was making them look bad – and told me so, openly.

They were ‘lifers’ at the utility, and knew they would not get fired. The boss even told me ‘once you’re in here, it’s almost impossible for them to fire you’ when he offered me a permanent, full time, position.

#42 Lisa on 03.08.19 at 7:17 pm

Ageism is not the only one. People with obesity are pretty regular targets of discrimination and it is tolerated because it is mistakenly seen as a lack of self control rather than a hormonal/metabolic issue.

#43 Ustabe on 03.08.19 at 7:20 pm

Bandit, so stoic, can someone please tell me how to achieve the state of mind that bandit has achieved?

You can tell a lot about a person by the dog they keep and conversely you can tell a lot about the dog by studying the owner(s).

#44 yorkville renter on 03.08.19 at 7:21 pm

#26 – I’m with you… almost identical rent in a place almost as big as the house we sold, with zero expenses beyond rent and renters insurance… no shovelling, underground parking and great concierge.

I tried explaining the same rationale to my local barmaid as she asked about buying RE… she was almost shocked at the math, but was still thinking owning is better for her, even though it’s way cheaper for her to keep renting.

#45 Robert Ash on 03.08.19 at 7:21 pm

A couple of Comments, on Aging. I just moved to the Interior of BC. The most active people, helping me with my Home Reno’s are in their 70s and really active… The Fellow helping Clear the Land, and buck up the Trees, is 68 works, like a 25 year old…. The Gravel Operator, is over 70 years… took his first get out of here Holiday, last summer,… Equipment operators, over 70 years… The local Successfull Leader in Small Business, is 77 years, and still putting up Multi Commercial buildings.. And every one of them really doesn’t need the money,…. we are talking very financially set small business people… I am still mixing, my own Cement and Digging the Holes, with a Breaker Bar, to handle the large rocks…. I see this trend quite a bit… there are a lot of younger folks, not working… go figure…
At Ann’s age, the House is pretty important. Renting is a good option, especially if the Roof, and other Must do Maintenance is around the corner.. That being said, if the House can be used to generate some income… An Elder Boarder… Garage Lease for the Mill with a Sporty car… Just Parking or even Store and RV… might make that House work…. worth a thought…. In my opinion, the folks, I see with a lot of problems while Aging are maybe not getting out enough… Ann can live a lot more years…. at 64 now… likely on average… another 22 years… I wish her the best… and renting is just fine, in a nice well managed, building…

#46 akashic record on 03.08.19 at 7:22 pm

#ForthePeopleAct

Finally, I can vote in US elections.

#47 Smartalox on 03.08.19 at 7:24 pm

For what it’s worth, my siblings and I put my (now) 80-something parents into a rental after they sold their house when they retired. The equity they took from the sale boosted their investments and consequently, their income. Their TFSAs are maxed, and provide tax-free income that doesn’t diminish their CPP, OAS or GIS.

Renting means the landlord pays to keep the place in order, fixes the shower when they need it, replaces appliances, etc. It really stabilized costs for them. They don’t have to worry about taxes, or (due to rent control) excessive rent hikes.

Cheaper than ‘senior living’ for two people who can still feed and bathe each other, and they get to keep a dog, which keeps them both active and happier than they’d be in a group home.

And peace of mind for the rest of us, because there aren’t any more calls of ‘such and such is broken, and we can’t afford to fix it’. Can you help us out?

#48 Ann Must Do Her Homework on 03.08.19 at 7:24 pm

There really isn’t enough facts here to ascertain a firm solution. It bothers me why her husband is driving, or commuting otherwise, 2 hours per working day that costs money. She really doesn’t know the home value without a degreed appraisal report, or perhaps a market evaluation using the internet. She must sit down and add up all present and future costs of owning that home. Why can’t they rent an apartment closer to the husband’s employer, after selling the house?

#49 WillD on 03.08.19 at 7:31 pm

Bandit looks so majestic.

#50 Shawn Allen on 03.08.19 at 7:39 pm

Typo…?

#6 Tulips on 03.08.19 at 4:53 pm
“They have negative net worth at the moment, with the mortgage and loan greater than their equity and savings.”

Is that a typo or am I missing something?

*********************************
Either a typo or two in there or it’s the new math.

Net worth is pathetic but positive at $55 +$250 minus 150 minus 30 = $125

The claim that almost all of the old age pension is lost to taxes sounds suspicious on a $90k income and with the spouse not working. Even if we add his CPP which was not mentioned.

She will get old age next year as she turns 65?

With so little savings and with a $150k mortgage and another $30k in debt at this stage of life, the chances that they will save anything like $120k in the next few years is likely zero unless there is more to the story.

#51 Down and Out on 03.08.19 at 7:41 pm

Bandit reminds me how humbling a dog can be so loyal and loving and trusting never wanting anything more than the companionship and a little love from his best human friend making the short time they are here even more precisest . Enjoy and feel special he picked you

#52 ImGonnaBeSick on 03.08.19 at 7:43 pm

#36 Doc on 03.08.19 at 6:57 pm
____________

I know you’re being good natured, but do you honestly think that Garth didn’t include OAS when he reviewed this couple??? It’s good to be helpful, just don’t be insulting to the host.

#53 jerry on 03.08.19 at 7:49 pm

Hang in there, Bandit.

Our little buddy just passed at a little short of 15. A steep decline over the period of a week or so and then the inevitable one-way visit to the vet. No pain, no anxiety, just sleep.

A decade and a half of pure joy but nothing, no nothing, can prepare you for the end.

#54 Interstellar Old Yeller on 03.08.19 at 7:49 pm

Nice to see you, Bandit! Wishing you an early spring and some peanut butter Kongs.

#55 Eco Capitalist on 03.08.19 at 7:51 pm

Some practical advice:

Beans, rice and chickpeas will cover a large chunk of your nutritional needs cheaply. If the chronic illness isn’t keeping you housebound, start a vegetable garden so you can supplement with seasonal produce. Reduce your meat consumption and use a slow cooker to turn some of the cheaper cuts into good meals.

#56 45north on 03.08.19 at 8:02 pm

Hubs is commuting like a fevered 30-year-old

I remember working at U of T. Young kids, we were all doing an hour a day, one way. Well not all but most. You can do that for only so long.

#57 45north on 03.08.19 at 8:03 pm

can’t take it: Dress Up has done nothing but apologize to everyone since taking office.

John Ivison: talking about Justin Trudeau: But a snow storm diverted his plane to Happy Valley-Goose Bay, N.L., and the ceremony was cancelled. If it ever comes off, It will be an opportunity for more images of the kind in which Trudeau and his spin-doctors have specialized over the past three years – a chance to highlight his compassion, empathy and sensitivity, while apologizing for historic wrongs that he personally had nothing to do with.

https://nationalpost.com/opinion/john-ivison-trudeau-isnt-feeling-it-and-concedes-only-to-an-erosion-of-trust?video_autoplay=true

#58 Smoking Man on 03.08.19 at 8:06 pm

Bandit looking good for an old fella.

#59 Ken on 03.08.19 at 8:08 pm

neat – Bandit and your cottage on the sea. Lets see the tugboat.

#60 Mean Gene on 03.08.19 at 8:10 pm

Forced mandatory retirement at 65 was legal up until 2009 for most provinces, a few years before the first wave of boomers hit retirement age… funny that.

Any way, back in the day, people had their financial houses in order because they knew they were being punted from the workplace at 65, no more soup for you.

Maybe the current abysmal retirement savings rate and people working far longer than they should, basically dicking around thinking they can work as long as THEY want ignoring potential poor health with advanced age, buying bigger houses later in life than normal, taking on more debt and giving money away to their spawn.

#61 will on 03.08.19 at 8:10 pm

What’s that piece of real estate in front of Bandit worth? Maybe Ann and hubs could move in and turn it in to some kind of harbour business tourist attraction. Or maybe you have your eyes on it Garth…

Stellar clarity on the sitiation Garth. Ann and hubs should listen to you.

Does anyone know the etymology of “pogey”? Nothing coming up on Bing and I am not packing my OED with me at the moment.

#62 Nonplused on 03.08.19 at 8:11 pm

Bandit looks happy.

My boss once confided to me that he wasn’t sure his vet’s advice to give his dog insulin shots was very good, or at least that the vet didn’t really give him any advice. I responded “well, he probably didn’t want to be part of the decision”. In retrospect I realize this was probably not very tactful or sympathetic. I should have said that “humans prefer a jab to death, and so the dog was probably happy for every day he got to go for one more jog. I would have done the same thing you did.” But sadly, even insulin cannot prevent the inevitable, only delay it. He eventually had to put the dog down. But I’m still not sure what the dog thought. I bet the dog was happy he got one more year. Anyway, my boss clearly loved his dog.

He let me go not long after, but I don’t think it was related. Pretty much everyone over the age of 45 got let go, including him eventually. And the settlement was more than fair.

——————–

Today’s letter I think describes how a great many people enter retirement. That is, they don’t, even at 70. I know my mother-in-law entered retirement with a condo and about $180,000 to her name, which is mostly all gone now. OAS and survivor CPP is her life line. I personally don’t know how people do it. Whenever I do my calculations I figure a couple needs something like $2 million to retire. That gives $80,000/y in income going at 4% withdrawals. I suppose it can be somewhat less if you count CPP and OAS. If those pay $17,700 a year, and maybe you can live on say $50,000 a year, I suppose a couple could do it with about $500,000 saved. But yet so many people head towards retirement with so much less than that. It takes years of saving to get that kind of money in the bank.

I suppose this is why get-rich-quick schemes and lotteries are so popular.

The real problem is that most people are financial illiterate. They wouldn’t know a bond coupon if it hit them in the forehead. Also, and I’ve seen this time and time again, is that people decide their lifestyle before they analyse their income. They sign up for a house, 2 kids, a yearly vacation in Mexico, 2 cars, and cell phones all around before they figure out how to pay for it all. This is backwards. A wise person figures out how much they earn first, and then lives accordingly. But that’s not what the majority do. Instead they look at what the neighbor or brother-in-law is buying and then they go out and buy the same things on credit, which is how the neighbor or brother-in-law did it too.

Every time I drive past an RV storage yard it strikes me. All these people dropped a ton of money on an RV they use maybe 3 weeks a year and pay $100 a month to store it, and they don’t even have enough land to store it at home???? Don’t get me wrong I have an RV, and it’s served my family well for many years, but I park it behind the house, along with a boat and 2 utility trailers. None of that stuff will ever be replaced with new ones. For example I bought the boat used over 14 years ago for $14,000. That’s a lot. But to replace it now with a new one would cost $40,000. There just isn’t $40,000 of utility replacing a perfectly good old boat with a new one. I’m not sure the old one was worth $14,000 but it was impulsive.

#63 crowdedelevatorfartz on 03.08.19 at 8:13 pm

@#92 Tater
“have you ever been confused for staff rather than a guest …”

******

That brought a smile to my face.
Years ago I was in the Sears Mens Dept in their downtown Vancouver store with a new hire that was being fitted for a uniform.
I was standing there in my uniform with a radio in my back pocket and keys hanging from my belt.

It was Monday morning around 9am.

A lady came running up to me with a small child about 4 years old that looked like it was about to explode with dysentry or some other icky bowel ailment….
“WHERE’s YOUR WASHROOM!” the obviously distressed mother demanded.
“Burnaby.” was my rather sarcastic response.

She glared at me and looked for a name tag on my chest. No luck.
“ARENT YOU SECURITY?” she snarled.
“No ma’am. I’m a customer…. just….like ….you….”

I pointed to the salesman from the Mens Wear dept and suggested maybe he could help.
Off they went to the bathroom….apparently they didnt make it on time…..karma strikes again.

#64 crowdedelevatorfartz on 03.08.19 at 8:18 pm

@#2 Dustin
“Bandit, so stoic, can someone please tell me how to achieve the state of mind that bandit has achieved?”
*****

Fetch Garth’s slippers for 10 years without complaint?

#65 Funky on 03.08.19 at 8:22 pm

Mr. Turner, you’re generosity with all this is exemplary. Again, thank you.

#66 Linda on 03.08.19 at 8:23 pm

As soon as I saw today’s photo, I wondered if it were of Bandit. He is a fine example of aging gracefully:)

‘Ann’s’ story is sad & all too common. Short of ‘the government’ increasing CPP deductions to match typical DB pension plan deductions so that people would have a decent amount to live on upon retirement the only solution is to take action yourself. Anyone read that saying ‘inside every old fart is a younger person screaming ‘what the hell happened?” That applies to more than just grey hair & wrinkles. I’m sure ‘Ann’ & spouse never dreamed they’d be in this situation at their age. It’s one thing to chose to be a ‘perennial’ & continue to work for a living; quite another to have to do so in order to make ends meet. ‘Ann’ mentions having to cease working due to a chronic illness. Depending on what is or isn’t covered by health care, such a situation could easily result in ‘having’ to be a perennial.

#67 bellend on 03.08.19 at 8:30 pm

septuagenarian with a 6 figure mortgage? really??

I’m losing the will to live

#68 Rural Rick on 03.08.19 at 8:37 pm

Lucky dog. He has partners that love and care for him. Wooftie woof.

#69 Vampire Studies on 03.08.19 at 8:39 pm

111 Barb – found this on taxtips.ca

“Canada Revenue Agency (CRA) usually considers that if there is more than 1/2 hectare (1.25 acres) of property, only 1/2 hectare of the land can be considered part of the principal residence, and there would be a capital gain on the excess when the property is sold, even if the rest is the principal residence. However, they also consider whether the property is subdividable. Thus, if the property is 2 hectares, and is not subdividable, they may consider the whole amount of the land to be part of the principal residence.”

#70 David on 03.08.19 at 8:40 pm

True point about ageism. Surprisingly at my present employer the employer match on our DC pension goes up depending on age. Just for being older, employees are compensated better, irrespective of job, experience or merit. I’m surprised this is allowed.

#71 Moses71 on 03.08.19 at 8:47 pm

DELETED

#72 CEW9 on 03.08.19 at 8:55 pm

Bandit is a fine looking dog. Looks right at home in the snow.

#73 acdel on 03.08.19 at 8:56 pm

On this women’s day utopia?? Anyways, this is dedicated to my lovely niece that never played victim and just moved forward step by step like the rest of us. Much respect!

https://www.youtube.com/watch?v=PN1EFs9XQoc

#74 n1tro on 03.08.19 at 8:56 pm

#41 Smartalox on 03.08.19 at 7:15 pm
I think that there are a lot of people who will tell you that ageism works ‘the other way’, too. Probably everyone can recall a point in their career where they were told ‘we’ve always done it this way’ or ‘you’re making the rest of us look bad’. I recall early in my career, (I was 25, fresh out of school) working on a contract for a government-owned utility. I completed my assignments in less than half the time compared to my 50- and 60-something colleagues.

The boss liked my work just fine, but I had to ask him not to compliment me in the open office, because of the negative feedback I got from the people that I worked with. I was excluded from meetings, had credit taken by others for my work, and was generally treated poorly by my coworkers, who felt very much like I was making them look bad – and told me so, openly.

They were ‘lifers’ at the utility, and knew they would not get fired. The boss even told me ‘once you’re in here, it’s almost impossible for them to fire you’ when he offered me a permanent, full time, position.
——————
I think your example is not a good example of ageism. Your co-workers were dicks because they were lazy government workers which you made look bad by just doing your job. That isn’t ageism.

Ageism is when you get passed over for promotion when you fully qualify for the only reason being your age.

Sexism works the same way. Say you are a man and get a promotion over a more qualified woman because of your sex, that is sexism.

If you are a woman who gets promoted over a more qualified man because of your sex, that’s ah…. that’s because it’s 2015. Sunny ways!

^J/K… Please don’t call the peoplekind rights tribunal on me!

#75 JTepic on 03.08.19 at 8:57 pm

#13 Captain Uppa “If anyone ever found themselves in a similar situation like me and broke out,I’d love to hear from you”
————————————————————————————————
Did it in April 2017, when everyone was losing their minds , apparently. My wife and I got married and purchased our first home in 2007-2008. We were sure we had bought at the peak of the market after losing many,many bidding wars. We finally purchased an 840sq ft 50’s bungalow in very South Etobicoke for $376K. Over the next 10 years we paid little attention to home values as we were not planning to move. Mortgage renewal time had is “guesstimate”

#76 Vision on 03.08.19 at 9:15 pm

#73 Millennial Realist on 03.08.19 at 9:02 am
Anyone who must reference slavery has lost the argument. Better luck next life. – Garth

——————————————————–

Male privilege exists.

White privilege exists.

Economic privilege exists.

This is not fake news.
——————————–
Question. If I am a minority male, can I play the victim card or am I part of the problem?
——————
Question: If I am a white female, can I play the victim card or am I part of the problem?

#77 IHCTD9 on 03.08.19 at 9:16 pm

I found out today a retired ex co-worker of mine just passed away. Retired 3 years ago. Probably 73-74 years old, if that. That’s the third one over the last 6 years. The other two were still working when they fell ill.

One of my wife’s clients is still at work in her 70’s and showing signs of cognitive degeneration. Just lost her license. Anxiety and fear, she still needs to work.

#78 DON on 03.08.19 at 9:19 pm

China ‘exaggerated’ GDP data by 2 percentage points, new study says

Mainland has overestimated its nominal and real growth rates by about 2 full percentage points on average

https://www.scmp.com/economy/china-economy/article/2189052/china-exaggerated-gdp-data-2-percentage-points-least-ninen 2008 to 2016.********

If true, wow. China exports down also.

#79 joblo on 03.08.19 at 9:19 pm

How bout a TREAT!

#80 JTepic on 03.08.19 at 9:24 pm

#13 Captain Uppa “If anyone ever found themselves in a similar situation like me and broke out,I’d love to hear from you”
————————————————————————————————
Did it in April 2017, when everyone was losing their minds , apparently. My wife and I got married and purchased our first home in 2007-2008. We were sure we had bought at the peak of the market after losing many,many bidding wars. We finally purchased an 840sq ft 50’s bungalow in very South Etobicoke for $376K. Over the next 10 years we paid little attention to home values as we were not planning to move. Mortgage renewal time had us “guesstimate” the value while sitting in front of [email protected] (back when banks were tying your noose for you). Again, we weren’t planning on moving out anytime soon as the goal was to renovate to fit our family as it grew. Well, about the time that it became apparent that four people in a shoebox was less than ideal, mortgage renewal time was upon us. In doing some research, I realized that what the bank had valued our home at was certainly nowhere close to what myself or any sane human being should pay for that little pile of red bricks.

I smelled opportunity and with some convincing, I talked my wife into selling and renting for a while to see where the market would go. We sold for close to $1M

Well, after 18 months of renting a house three times the size of the old one, in a swish neighbourhood in leafy Etobicoke, I’m not sure I care that much where the market is going to go as I don’t see myself buying back in anytime soon, regardless of any market softening that may take place. We invested a good chunk of the proceeds of the sale with the host of this pathetic blog, providing us with an incredible sense of relief in terms of securing a decent financial future. I now look at our new home as a place to live and enjoy time with my family, instead of an investment of our entire net worth and a constant source of money consuming projects. Our landlords are great and responsive. If something goes wrong, I make a phone call and they come in on the weekend, while we are north at our ski club (something we never would have done as homeowners due to home ownership cost) or at the cottage. We lock the door and drive away.

Although my strategy in April 2017 was to try to play the market and buy back in, a 25% correction (not likely), would still be hard-pressed to budge me from my current situation as a renter, which is full of great sleep and an abundance of lifestyle improvements.

Just my experience.

#81 Rargary on 03.08.19 at 9:31 pm

An example of what not to do… they both have financial problems. Where did all that money go from their whole lives? Lavish trips? Alcohol? Gambling? Shopping? Why weren’t they worried when hubby turned 65? 1st thing Ann will do if hubby passes is sell the house. So why not do so now instead of hubby killing himself trying to hold onto it? Sounds like a losing battle.

#82 tccontrarian on 03.08.19 at 9:35 pm

Bandit looks very…’balanced’ and ‘diversified’! Someone has had an influence. Obviously, a mutually beneficial arrangement of 14 years and counting…

I don’t know how to commute more than 15 minutes each way. One hour would kill me – if not physically, for sure emotionally. Selling now and renting may still be the best option, given the numbers.
I’m now a ‘renter’ and love the freedoms (especially being debt-free!)

Good luck, Ann.

TCC

#83 Remembrancer on 03.08.19 at 9:51 pm

#50 Shawn Allen on 03.08.19 at 7:39 pm
Typo…?

Net worth is pathetic but positive at $55 +$250 minus 150 minus 30 = $125
——————————————————
Not new math, straight up assets and liabilities. Its not +$250, its +$100 equity… and that +$100 is locked down tight so immaterial to their actual day-to-day financial situation unless they sell or some predatory lender comes into the picture with a HELOC or reverse mortgage Faustian bargain…

#84 Bytor the Snow Dog on 03.08.19 at 9:54 pm

#20 Leo Trollstoy on 03.08.19 at 5:51 pm sez:

“How does a man continue work at 70 years old, earning $90k a year and have nothing?

What a failure”
——————————————–

Probably lost his shirt at least twice in divorces and now likely “concerned hubby” who wrote Garth will be #3. Unless he works himself to death first.

#85 Bytor the Snow Dog on 03.08.19 at 10:06 pm

#42 Lisa on 03.08.19 at 7:17 pm sez:

“Ageism is not the only one. People with obesity are pretty regular targets of discrimination and it is tolerated because it is mistakenly seen as a lack of self control rather than a hormonal/metabolic issue.”
—————————————————–
What does this have to do about anything? Be qualified. Have the desire to compete and some semblance of personality. Unless the job you’re applying for requires a high level of physical competency you will be considered.

#86 Vampire Studies on 03.08.19 at 10:09 pm

24 VREU

“Saanich East appears to be leading the way in terms of Greater Victoria’s SFH price correction….”

It may indeed be. But we cant just pick that area and say “see?” when the overall from feb 2018 has hardly changed. The stats show 15 areas, so in order to maintain the overall average, the downturn in Saanich east must be countered elsewhere. What I see is Vic, Oak Bay, Saan Central, Saan north and colwood all having significant increases in ave price. With
decreases in Esquimalt, view royal etc.

So we cant use “bull logic” to win a “bear argument”,
though I’m not saying it wont happen. The prices are
very high. But we thought that 3 years ago……

#87 Stats freak on 03.08.19 at 10:28 pm

Gorgeous photo! Thanks for sharing him Garth. :)

#88 Millmech on 03.08.19 at 10:37 pm

#31
T2 probably treats men the same way and you don’t see men lining up to complain or resign.Why should he be toast if treated both men and women the same way.This is funny how it is all coming out now not when it happened, if men complained like her and did this they would be looked upon as spineless.

#89 crowdedelevatorfartz on 03.08.19 at 10:40 pm

@#71 IHCTD9
“One of my wife’s clients is still at work in her 70’s and showing signs of cognitive degeneration. Just lost her license. Anxiety and fear, she still needs to work.”
+++++

Sad.
i have co workers on the wrong side of 60 and they have crappy union pensions and no savings .
Still working. dreaming that a lotto ticket is their salvation.
I think that instead of “social awareness” or “political correctness” being pounded into the brains of our youth they should be taught how to balance a budget and save for the future….
Unlike our wasteful generation.
Unfortunately , if we raised a nation of fiscally responsible voters…..we’d kick the spendthrift bums in office…..out….

#90 Shawn Allen on 03.08.19 at 10:49 pm

Remembrancer?

#83 Remembrancer on 03.08.19 at 9:51 pm
#50 Shawn Allen on 03.08.19 at 7:39 pm
Typo…?

Net worth is pathetic but positive at $55 +$250 minus 150 minus 30 = $125
——————————————————
Not new math, straight up assets and liabilities. Its not +$250, its +$100 equity… and that +$100 is locked down tight so immaterial to their actual day-to-day financial situation unless they sell or some predatory lender comes into the picture with a HELOC or reverse mortgage Faustian bargain…

**************************
Not sure what your message to me is.

If you are looking at net worth you include the $250 value of the house minus the $150 mortgage and that’s the $100 equity. Based on the info the net worth was $125. Agreed it is far from liquid.

The Post today originally mentioned negative net worth. That was the reference to new math. That typo has been removed. Anyway, no big deal.

#91 Common Thread! on 03.08.19 at 10:49 pm

This story seems to be all to common. I’ve a sister in law that hasn’t saved a penny for retirement. She’s 57 years old. Starting to look well past her prime. Separated from husband, he drank every penny and they didn’t seem to worry. However things changed, and not for the better. She left him and has used the money from the sale of there family house to repurchase another house in a
rural back water. After the split she walked away with about $90,000 she’s currently caring a $160,000 mortgage on the new digs. She was counting on her two spoiled daughters helping with the mortgage.until she gets back on her feet. Guess….what, they both bailed this summer to live with there boyfriends….hahaha.
Who would of thought? …..years prior I tried advising these fools on money management. Guess who was the bad guy! Guess who’s now singing the old adage….life’s hard when you’re stupid! True story!

#92 RYan on 03.08.19 at 10:49 pm

#27 RE: #20 Leo Trollstoy

He was probably taken to the cleaners by ex-wife.

********************

Happy Woman Day

#93 Barb on 03.08.19 at 11:17 pm

#69 Vampire Studies on 03.08.19 at 8:39 pm
111 Barb – found this on taxtips.ca

“Canada Revenue Agency (CRA) usually considers that if there is more than 1/2 hectare (1.25 acres) of property, only 1/2 hectare of the land can be considered part of the principal residence, and there would be a capital gain on the excess when the property is sold, even if the rest is the principal residence. However, they also consider whether the property is subdividable. Thus, if the property is 2 hectares, and is not subdividable, they may consider the whole amount of the land to be part of the principal residence.”

————————————-

Lovin’ Vampires! I’m off to taxtips.ca to memorize it.

My accountant had been agonizing over the issue as we plan to sell…he had some horrible results/scenarios when considering tax results.

Suddenly love my municipality; they wouldn’t let me subdivide the land!

Thank you, Vampire Studies!

#94 Common Thread! on 03.08.19 at 11:31 pm

It’s going to be more common than you think to hear stories like this. Relying on anyone other than ones self seems to be the best solution to independence. Pay as you go and live with in ones means needs to be taught sometimes the hard way. The three legged stool means two of the legs are the retires responsibility. Since companies are no longer interested in providing pensions. I would think, the RSP and TSFA would fill his void? The third being what the government gives you! Relying on blind faith and help from one’s siblings is wishful thinking!

#95 yorkville renter on 03.08.19 at 11:55 pm

#81 – 1st thing Ann will do if hubby passes is sell the house. So why not do so now instead of hubby killing himself trying to hold onto it?
_________________

2 hour commute, 5x a week, is like working an extra day a week… and he’s doing it at 70!!!

Nothing can replace time; no amount of $$$ can buy it, and you’ll never know when you’ve run out – so best you can do is enjoy it.

I’d definitely move.

if you can rent out the house and make a little do it and use your current mortgage payment to rent closer to work, or just sell the place.

#96 Smoking Man on 03.09.19 at 12:12 am

My Hero. Never was plagued with the FOMO or fear of any kind. Did not give a shit. A real man.

The moment you give two shits about what other people think of you is the moment you will never reach your potential and will suffer the rest of your days.

Go for it. Life is short. Can’t stand my old hero Roger Waters. I use to think he hated the machine, he works for it. Burned Sid. Sid was the soul of the band.

Everyone has a price I guess. To bad they never learned to cide and trade forex I’m un buyable.

https://youtu.be/A22oy8dFjqc

#97 Turd Ferguson on 03.09.19 at 12:32 am

“ageism is the only discrimination still freely tolerated”

Yeah. When I walk into the office of my coworker who’s attempting to flip is computer monitor on its side to read a PDF file in landscape that was scanned out in portrait…you still wonder why?

He’s 62 years old, burnt out and can’t afford to retire because of his crappy financial decisions. Has negative cash flow on 2 rental properties. He’s easily the least productive member of our team and my other coworkers agree that he needs to be replaced with someone half his age. Boomers had the world by the tail, they came and ate everything like a pack of locusts and left us with a mess. Yeah I’m ageist , deal with it.

#98 Sail Away on 03.09.19 at 12:41 am

“ageism is the only discrimination still freely tolerated”

Actually, it’s also open season on hair loss. Someone can freely discuss my shining pate, but if I mention they’ve gotten fatter, it’s taken as an insult? Sheesh.

#99 Smoking Man on 03.09.19 at 12:44 am

Get rich avoid fame.

https://youtu.be/8wk9hPubD1Q

#100 joblo on 03.09.19 at 1:32 am

So this is interesting, how far down the rabbit hole does this SNC Lavalin scandal go?

https://www.nationalobserver.com/2019/03/08/analysis/hidden-key-snc-lavalin-scandal

#101 Big Al (Original) on 03.09.19 at 2:26 am

#18 Bob Dog on 03.08.19 at 5:46 pm
Why have all the pensions disappeared? Where did the labour unions go?

The government has failed us. Bank and corporate profits are at record high and the middle class no longer exists.

Can we start building guillotines now?

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

ANSWERS:
The left (including unions) has abandoned the working family, with respect to both incomes and the values of the working family, and replaced them with the easier work of boutique social justice causes (mostly identity causes like race, gender, sexuality)

The upper, white collar/management/technical middle class no longer see themselves as working family middle class but mistakenly identify themselves with the elite. Through this, the mass of the middle class is divided and conquered.

The right has abandoned the working family, it’s incomes, and values by adopting an extremist form of agency theory and also caving, every single time, to the new left’s boutique social justice causes.

#102 Dolce Vita on 03.09.19 at 2:28 am

Labour Force Survey (Jan. 2019 to Feb. 2019) actually BETTER than your typical Math Challenged Cdn MSM reports (i.e., parrot StatCan words in “their” words but do NO due diligence):

Unadjusted Numbers (thousands, no stats applied, actual):

Employment = 92.2
Full-time = 63.7
Part-time = 28.5
Unemployment = -9.5 (82.7 added to workforce, 92.2 jobs created)
Unemployment rate = 6.1% (-0.1% change from Jan. 2019)

Seasonally Adjusted Numbers (thousands, stats “massaged”):

Employment = 55.9
Full-time = 67.4
Part-time = -11.6
Unemployment = -0.7 (55.1 added to workforce, 55.9 jobs created)
Unemployment rate = 5.8% (0% change from Jan. 2019)

TO BE EXPECTED as this is when the hiring cycle BEGINS during the year. Here is the chart for Unadjusted, 2018:

https://i.imgur.com/PL6mpU8.png

And this chart shows the amount of statistical “massaging” that StatCan does on the Employment numbers, 2014-2019:

https://i.imgur.com/JSMRK44.jpg

Yet again, StatCan wants to shield us MERE CDN. MORTALS from the vagaries of seasonality as if Cdn’s unaware of seasonal changes around them.

——————————————————————

StatCan: Mollycoddling Canadian’s since 1971.

To get the above numbers on your own, go here (learn to Add/Remove Data & Apply followed by Copy, Paste, do some ciphering in Excel or Sheets on your own meal ticket):

https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1410028701

#103 Dolce Vita on 03.09.19 at 3:44 am

Yes, I have nothing better to do with my life.

Here are charts based on the StatCan data from (link below):

Average usual hours and wages by selected characteristics, monthly, unadjusted for seasonality, last 5 months

Effective Annual Return, based on 5 months, varied from a high of 6.23% for Natural resources, agriculture and related production occupations to a low of -1.90% for Education, law & social, community & gov. serv.

$/hr + Effect Annual Return for some Common Characteristics (e.g., 15 yrs and over, Union, Temp.):

https://i.imgur.com/eYYVFRg.jpg

$/hr + Effect Annual Return for some Selected Characteristics (e.g., Business Finance & Admin, Manufacturing, Health):

https://i.imgur.com/r45Qnmh.jpg

By far the highest paid was the Management characteristic (not shown in the above chart. Oct. 2018: $43.40/hr, Feb. 2019: $44.14/hr, EAR = 1.73%.

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410032001&pickMembers%5B0%5D=3.4

For the above and per my prior post, learn to Add/Remove Data & Apply followed by Copy, Paste, do some ciphering in Excel or Sheets on your own meal ticket.

#104 Dolce Vita on 03.09.19 at 4:04 am

OVERALL AVERAGE WAGE GAINS, Oct. 2018–>Feb. 2019, 15 years and over, were :

1.87%

Could of been worse. Finally, we have some wage gain numbers to go with those job numbers.

Thank you StatCan, mollycoddling and all.

Forgot to cite this important summary number and buried it in my prior post “$/hr + Effect Annual Return for some Common Characteristics ” chart…thus senility sets in slowly but surely and not Shirley (sorry Garth, could not resist).

—————————————-

Yes Garth, I know, Buonanotte.

#105 Under the radar on 03.09.19 at 5:29 am

Sell the house, rent an apartment close to work and shopping , debt, household repairs and maintenance gone.

#106 Under the radar on 03.09.19 at 5:44 am

42 , sorry but Excess carbs and sugar make the majority of people fat and sick along with a sedentary lifestyle . And yes , people who choose their foods without regard to consequences show a lack of self control or an appalling lack of education, much like the way people look after their finances. So please don’t suggest that a persons weight or financial plight is beyond their control .

#107 maxx on 03.09.19 at 7:49 am

@ #10

When he messed with my family’s well-being by decimating the TFSA, that was the deciding factor in never voting Lib while he’s around.

I smelled something very yucky back in ’15, with those thick layers of sneery varnish and paternalistic pandering.

Poorest performance of any Canadian politician. Ever.

Les incompetents continue to produce gargantuan taxpayer waste, debt and broken promises.

Sunny ways? Not on your life.

What a colossal, wasteful mess, on all fronts.

#108 Newly retired in Victoria on 03.09.19 at 8:04 am

Hola! From Mexico!
Please help me understand , Garth. I thought I knew the RRSP / TFSA thing but today’s post doesn’t make sense to me.
Why wouldn’t they fill his RRSP (in a spousal) and take the 38% refund. At 40k a year income in retirement they will pay little tax anyway and probably nothing on the RRSP if is claimed by her.

What am I missing??

#109 Mr Happy on 03.09.19 at 8:13 am

I was new in my career, 26 years old, when I met Jimmy. He was a co-worker but still working at 67 years of age. I asked just wtf he was still working for? His reply. I’m broke. Then he said: “save your money boy, old age comes quick!” It was my aha moment and I was blessed to get it. Started that day, now at 56, just over 2 million invested. How? One penny at a time. When others bought take out and $4 lattes, I ate bagged lunch and a thermos of Folgers. I feel sorry for those people but have no sympathy. We make our own choices.

#110 Tony on 03.09.19 at 8:24 am

Re: #16 JSS on 03.08.19 at 5:44 pm

Sometimes a dividend increase is a trap (bull trap). The Canadian Western Bank is a basket case and should be cutting their dividend not increasing it.

#111 crowdedelevatorfartz on 03.09.19 at 8:28 am

@#100 joblo

An excellent article about SNC Lavalin and the Liberal govt.

and I quote….

“This government seems plenty brave when it comes to tweeting at Saudi Arabia, or passing a Magnitsky Act promising action against corrupt foreign regimes, or lecturing China about the rule of law, but hasn’t the spine to prosecute its own….”

The sooner they go to trial and all their laundry is aired in public…..the better.

Hopefully pre-election?

#112 Tony on 03.09.19 at 8:51 am

They’re in much better shape than the average retiring Americans. They need to sell everything and move to a place where the cost of living is lower. They could also purchase prescription drugs for the dispensing fee and then turn around and sell them on the black market.

#113 Remembrancer on 03.09.19 at 8:55 am

#90 Shawn Allen on 03.08.19 at 10:49 pm

Shawn, my dispute of the math is the evaporation of the debt of -$150 by declaring the house as a +$250 asset leaving $100 in assets.

Unless they sell, her balance sheet is equity $100 and debt of $150 on the house. Add $55 to “+” side and $30 to “-” side hence they are under water, not modestly ahead (+$155 / -$180) at this point in time…

I belabour this point not to argue with you, but to illustrate the fallacy / illusion of the primary dwelling as a pure asset in many people’s heads whether its a number in the latest BC assessment notice or what the neighbour’s house sold for a street over in Etobicoke…

#114 NoName on 03.09.19 at 9:11 am

#106 Under the radar on 03.09.19 at 5:44 am
42 , sorry but Excess carbs and sugar make the majority of people fat and sick along with a sedentary lifestyle . And yes , people who choose their foods without regard to consequences show a lack of self control or an appalling lack of education, much like the way people look after their finances. So please don’t suggest that a persons weight or financial plight is beyond their control .

Interesting, i am what you would call mortally obist, in you expert opinion which of those 2 apply to me or it all of the above?

#115 IHCTD9 on 03.09.19 at 9:29 am

#98 Sail Away on 03.09.19 at 12:41 am
“ageism is the only discrimination still freely tolerated”

Actually, it’s also open season on hair loss. Someone can freely discuss my shining pate, but if I mention they’ve gotten fatter, it’s taken as an insult? Sheesh
———-

Haha, yes – I wish I had a dollar for every time a “brighten the room when I walk in” comment was made.

No biggie though, as the years rolled on most of those guys found themselves brightening rooms as well, plus a couple are displacing much more volume in same as a bonus.

By the time 40 rolls around, not too many folks are pointing and snickering due to the rule of glass houses.

These days I rock a shaved head and a big beard so IMHO, I look damn good in a Hells Angels kind of way :)

#116 Ace Goodheart on 03.09.19 at 9:29 am

They’re not going to make 6% off of ETFs during a bear market. And we’re way overdue for one.

It’s now been ten years since the last bear market ended.

An entire generation of millennials, headed by two of Garth ‘s own prodigies, have bought into something known as the “Fire” movement which basically involves relying on markets being able to produce at least a 4% per year return on the aggregate, forever.

I don’t know how to say this nicely but a lot of people are going to get basically killed cleaned out slaughtered financially when this bull run ends.

I have lived through high inflation, high interest rate, bear market times and you don’t make 4% per year in the markets. You lose your shirt. Cash is king but you can’t get any as it costs massive amounts to borrow it and no one has any.

This bull run appears to be coming to an end.

Yeah the smart ones will survive a long brutal bear market. But most won’t.

The amount of air headed ignorance currently on display including the various financial independent movements is kind of staggering. It’s like watching may flies swarm before a rain storm.

Extreme comments, unless they are directed to equity-only investors. A balanced and properly diversified portfolio sailed through 2008-10, and will do so again. (But 2008 is not returning.) – Garth

#117 Steve White on 03.09.19 at 9:41 am

Each day is indeed a gift.

#118 IHCTD9 on 03.09.19 at 9:43 am

#138 Gravy Train on 03.08.19 at 8:49 pm
#135 IHCTD9 on 03.08.19 at 4:27 pm
“The current research indicates that [m]en greatly desire [women] equal to themselves in every aspect.” Well, except for the naughty bits! :)
———

Of course! (ahem…)

I’ll be watching this particular trend from here on out. I know the hardline feminazis will clamp onto their narrative of inequality come hell or high water (lest they be out of a “job”), so it’ll be interesting to see how they respond to hardcopy proof than Men are no longer committing based on just looks, personality etc… (ie. they WANT equality).

#119 David Driven on 03.09.19 at 10:04 am

DELETED

#120 Justin S on 03.09.19 at 10:06 am

Great pic of the pup!

#121 crowdedelevatorfartz on 03.09.19 at 10:10 am

@#109 Mr Happy
“Started that day, now at 56, just over 2 million invested. How? One penny at a time. When others bought take out and $4 lattes, I ate bagged lunch and a thermos of Folgers. I feel sorry for those people but have no sympathy. We make our own choices.”
++++

100% agreement.
My “ah ha moment didnt come until the age of 30.
Living paycheque to paycheque.
Brown bagged it and started investing.
Stuck with a high fee, lazy assed ,” financial advisor” for 20 years…..until I found this site.
I figure it cost me close to $500k in lost investment earnings potential….so I finally dumped his lazy, lying ass 7 years ago….
I’m closing in on 1 mil so I wont be starving in retirement like my co workers…
66 and zero saved, no pension.
65 and zero saved, mortgage, debt, crappy union pension.
55 and huge debt, zero saved, 8 year old kid, …financially doomed.

Fiscal responsibility should be taught just like Math, English and Science in schools rather than all the touchy feely, anti bullying, garbage inundating the youth of today..
Ya cant be too politically correct when you’re cutting in line at the food bank or too busy rummaging through a garbage bin for food…

Saving for retirement….Better late than never.

#122 Hoonigan on 03.09.19 at 10:42 am

@ #100 joblo

That article should be required reading for Canadians.

#123 Bytor the Snow Dog on 03.09.19 at 10:50 am

#102 White Knight Tater on 03.08.19 at 12:43 pm sez:

“You’re missing the point of the first question. I’ve NEVER been asked in my career how I balance fatherhood and 10-12 hour days. My wife gets asked constantly. That is a very real double standard where women are expected (and made) to feel guilty for working. Especially if they have husbands who make a good living.”

Who is asking your wife about work/life balance “constantly”?

Who holds a double standard “where women are expected (and made) to feel guilty for working”? (Oh those feelz)!

Other women, that’s who. It ain’t men.

#124 n1tro on 03.09.19 at 10:51 am

#115 IHCTD9 on 03.09.19 at 9:29 am
#98 Sail Away on 03.09.19 at 12:41 am
“ageism is the only discrimination still freely tolerated”

Actually, it’s also open season on hair loss. Someone can freely discuss my shining pate, but if I mention they’ve gotten fatter, it’s taken as an insult? Sheesh
————
Own the baldness as a sign of virility! While other men are turning into women and asking the doc for testosterone pills, you can proudly that natural manhood is still flowing. Lol.

#125 LP on 03.09.19 at 11:11 am

#121 crowdedelevatorfartz on 03.09.19 at 10:10 am

Fiscal responsibility should be taught just like Math, English and Science in schools rather than all the touchy feely, anti bullying, garbage inundating the youth of today..
**************************************
Nope. It’s the parents’ and grandparents’ responsibility to lead by example. Stop giving in to every fashion fad coming down the pike. Stop funding unlimited cellphone plans. Give them responsibilities around the home for which they can earn spending money. When that’s gone…too bad, so sad. Take on more chores or wait until enough has been saved for that “must have” pair of torn blue jeans. Teach the value of $10. Share (knowledge of) the family budget with the kids. Show them how money can be saved by buying used, repairing what’s broken, doing without for awhile.

Teachers have enough of a job teaching the 3 Rs to your little darlings when they aren’t allowed to provide much discipline, when they’re dodging thrown chairs or separating fighting kids. And that’s just grade two for my daughter-in-law.

To borrow from an old proverb, “raise up a child in the way he should go…”

#126 Bytor the Snow Dog on 03.09.19 at 11:11 am

#101 Big Al (Original) on 03.09.19 at 2:26 am sez:

“ANSWERS:
The left (including unions) has abandoned the working family, with respect to both incomes and the values of the working family, and replaced them with the easier work of boutique social justice causes (mostly identity causes like race, gender, sexuality)

The upper, white collar/management/technical middle class no longer see themselves as working family middle class but mistakenly identify themselves with the elite. Through this, the mass of the middle class is divided and conquered.

The right has abandoned the working family, it’s incomes, and values by adopting an extremist form of agency theory and also caving, every single time, to the new left’s boutique social justice causes.”
—————————————————————

Great post! Sums up the situation very well.

#127 Shawn Allen on 03.09.19 at 11:23 am

The New Math?

#113 Remembrancer on 03.09.19 at 8:55 am
#90 Shawn Allen on 03.08.19 at 10:49 pm

Shawn, my dispute of the math is the evaporation of the debt of -$150 by declaring the house as a +$250 asset leaving $100 in assets.

Unless they sell, her balance sheet is equity $100 and debt of $150 on the house.

******************************
Okay, you don’t want to count the house as a $250 asset since it is so illiquid and the realizable value uncertain.

So why count the $100k equity? By your logic the house is eliminated from the net worth statement leaving the $150 debt.

So net worth is $55 RRSP minus $150 mortgage minus $30 other debt total minus $125.

If the house is counted at its alleged value of $250 the net worth is positive $125.

Your math illustrates the reality that one can always massage the numbers to get whatever answer they want.

Whatever…

#128 Shawn Allen on 03.09.19 at 11:38 am

Did Canada create 56,000 jobs in February?

Dolce Vita at 102 is concerned about the seasonal adjustment.

The graph that Dolce Vita provides I would argue illustrates that seasonal adjustment is quite necessary.

My beef with the jobs number is that the media reports it as if it were an accurate count with no error term.

In fact, it is based on a sample and has a sample standard error of plus or minus 29,000!

But that assumes the sample is random. That may not be the case. How does Statistics Canada find a random sample? Do they have access to not only a list of every household in Canada but also all our phone numbers?

Then there is the seasonal adjustment. That adds more potential error.

The fact is no one knows how many jobs were created in Canada in February. The Stats Can number is admittedly the best available estimate but it is subject to a large error term.

I would look at something like a smoothed trend over the past year. These month to month reports have shown some wild swings in the past couple of years and are not to be taken as gospel – except apparently by almost everyone reporting on the number.

There should be counts of the people in paid employment (this excludes the self-employed). Why not simply track the number of people paying into CPP and the number making payroll deductions for income tax? That would give figures without a sampling error. But again excludes the self-employed.

#129 DON on 03.09.19 at 11:39 am

#97 Turd Ferguson on 03.09.19 at 12:32 am

“ageism is the only discrimination still freely tolerated”

Yeah. When I walk into the office of my coworker who’s attempting to flip is computer monitor on its side to read a PDF file in landscape that was scanned out in portrait…you still wonder why?

He’s 62 years old, burnt out and can’t afford to retire because of his crappy financial decisions. Has negative cash flow on 2 rental properties. He’s easily the least productive member of our team and my other coworkers agree that he needs to be replaced with someone half his age. Boomers had the world by the tail, they came and ate everything like a pack of locusts and left us with a mess. Yeah I’m ageist , deal with it.
****************

Yah replace him with someone that’s on their iPhone all day every day.

#130 Victor V on 03.09.19 at 12:17 pm

https://twitter.com/ExtraGuac4Me/status/1103775740867174400

Friend bought an investment condo, mortgage broker told him to lie on the mortgage app & say it was owner occupied so he only needed to put down 5% instead of the 20% minimum.

“I do it with all my buyers. It’s all about max leverage. No one ever gets caught.”

Let that sink in.

#131 Damifino on 03.09.19 at 12:32 pm

#130 DON

Stereotypical-ism is something we should dispense with. Neither boomers, millennials, nor gen-whatever have yet cornered the market on incompetence, or brilliance.

#132 Remembrancer on 03.09.19 at 12:41 pm

#128 Shawn Allen on 03.09.19 at 11:23 am
Okay, you don’t want to count the house as a $250 asset since it is so illiquid and the realizable value uncertain.
———————————————–
I don’t want to count the house as an $250 asset b/c at the most basic level, ignoring market conditions, sales illiquidity etc etc its a $100 asset. If the mortgage was paid in full, then its a $250 asset and yes, I was triggered by the dismissive use of the term new math…

It doesn’t seem like your thing based on the comments here, but this is the type of thought process that gets the some members of the general public in trouble when they’re feeling all flush and entitled living in a $1M house (that they still owe $950K on over the next 25 years), driving an Audi (with a sweet 7 year loan to reduce the monthly payments) and see the need to pick up a supremo grande latte maximo with a double shot vanilla every morning on the way to work as OK when they don’t have two loonies to rub together at the end of the month and wonder why…

Final note from me on this topic – IMHO at its core, Garth’s postings are a daily lesson about choices, regardless of whether consciously made or unconsciously made, those choices have consequences, good and bad and most people are not taught or learn soon enough through experience how to navigate them. That, along with a basic helping of financial literacy and media literacy; two subjects sadly lacking in today’s curriculum…

#133 Shawn Allen on 03.09.19 at 12:48 pm

GST on Investment Advice?

May one dare ask if there is GST charged on investment management services including mutual fund MERs and fee-only advice?

If it were charged it would be tax deductible. (In the case of MERs it would be automatically tax deductible because like the MER it would lower the income).

And further, if not apply, does one dare ask why the heck not? Maybe the wealthy don’t like to pay GST? Or the industry had friends in high places?

HST is applicable to advisory fees. – Garth

#134 I'm A Believer on 03.09.19 at 1:07 pm

#4 Bobby “Governments are much to blame for this mess.”

People are to blame for choosing to be stupid and for wanting governments to be their mommy. This has been the case for decades. It’ll never change until people understand that government money is actually their money (taxes), and government handouts (taxes) are from their own pockets. And yes Skippy in Ottawa will do/say anything to get re-elected and the sheep will believe…..again. Old saying’ people get what they deserve.

#135 DON on 03.09.19 at 1:58 pm

#132 Damifino on 03.09.19 at 12:32 pm

#130 DON

Stereotypical-ism is something we should dispense with. Neither boomers, millennials, nor gen-whatever have yet cornered the market on incompetence, or brilliance.

***************
Agreed! It was a weak impulsive moment.

In Victoria this week, the police put on a morning sting and caught over 200 distracted drivers (phones) in less than two hours.

#136 Vampire Studies on 03.09.19 at 2:55 pm

Don/Damifino – there was no ageism/sexism/racism in
Don’s “impulsive moment”. Coulda referred to anybody!

#137 AGuyInVancouver on 03.09.19 at 3:54 pm

That is a truly awesome picture of Bandit!

#138 Rargary on 03.09.19 at 4:50 pm

I want to borrow Bandit!! Hes way too snuggly!

#139 Landlord Larry on 03.09.19 at 7:18 pm

#80 JTepic on 03.08.19 at 9:24 pm

May I ask you what you are paying in rent?

#140 Barren Wuffett on 03.09.19 at 7:33 pm

#80 JTepic on 03.08.19 at 9:24 pm

You realize of course that your little bungalow in south Etobicoke made you a 200% return, TAX FREE in 10 years. That was one hell of an investment…. You will never, ever do that going forward in a balanced portfolio over 10 years. Give real estate some credit….

#141 DON on 03.09.19 at 8:09 pm

#137 Vampire Studies on 03.09.19 at 2:55 pm

Don/Damifino – there was no ageism/sexism/racism in
Don’s “impulsive moment”. Coulda referred to anybody!
**********

Nope Damifino was right, like I said a weak moment due in parts to other similar events. But thank you for your comment.

#142 earthboundmisfit on 03.10.19 at 8:28 am

@125 n1tro …. Grass don’t grow on a busy highway, bro.

#143 Sprawl on 03.10.19 at 11:02 am

Been trying to understand hth PPC is calculated? There is little information online. The My CRA Account links with CPP but only shows how much is paid in my individual case.

Found a US News article for the USA and it was simple, if true: Contribute $135,000, over 35 years and receive $27,000 a year. So I called CPP to see what’s up?

Asked the rep does a Canadian need $5,400 a year, for 35 years or $189,000 to receive full CPP. The response? For every year missed during your working life it decreases.

What’s working life in years? I asked. Conflating reply, what do you care you get the max anyway. I did the math [email protected]% is $511,000. Would like to understand how CPP truly works.

How CDN $189,000 = $13,680
vs
USA $135,000 = $27,000

#144 sprawl on 03.10.19 at 11:08 am

Nothing like demonstrating being dyslectic in public! That’s okay I was early to the gender fluid club. Still remember, reading to the class in Grade one, “Dick was Jane” True story.

#145 MaxtheTax on 03.10.19 at 2:10 pm

So interesting Garth:
Mega mansions up for rent at ridiculously low prices in B.C.

https://www.ctvnews.ca/video?playlistId=1.4329798

#146 Rebs on 03.11.19 at 10:58 am

I might have missed something along the way, but why do you always include ‘missed investment opportunity’ when calculating the true cost of ownership?
You need to live somewhere and would be paying at least something to rent each month…

Have your cake/eat it too?

Balancing the opportunity cost of uninvested money with rent payable is a valid way of comparing apples and oranges. – Garth