So?

How much do you owe? Seriously. More than you make in a year? Or two? Is your net worth positive or negative? Have you ever thought about it?

Most people don’t ask such questions. Now that the economy’s slowing, central banks have turned into kittens and a nervous government’s paying moisters to buy houses, it’s time to reassess. Are you in a safe place? Can you weather a debt storm? Because there may be one.

First. Let’s compare Trudeau’s Canada with Trump’s America. To be fair, neither leader is directly responsible for the astonishing graph below, but they both influence it. In Canada politicians encourage borrowing, spending and debt with endless real estate incentives. (We got two more last week.) In the US a far higher proportion of households hold financial assets, having learned the lesson that house lust can be costly, even deadly. You can see below exactly when the American property bubble burst – and how that encouraged a debt purge. We have yet to follow.

Here’s the latest news, updated in the last few days by StatsCan.

In the final three months of 2018 our debt load expanded faster than incomes. A new debt-income ratio of 178.5% was set. Then there’s a debt service ratio – the amount of money people must shovel out monthly to carry their loans. Also at a record high, and building for more than a year. So wages aren’t keeping pace with payments.

Together we borrowed a fresh $21.2 billion in the Q4 of ‘18. That brought total household debt to $2.21 trillion, which is bigger than the entire economy. Of that, $1.44 trillion sits in mortgages, with $769 billion in consumer credit, of which $243 billion is in HELOCs, secured by real estate.

Those numbers are hard to digest. They suggest people have borrowed so much money against the future that it’ll take decades (forever, if we don’t stop borrowing) to move the needle. Of course, if we keep buying houses we can’t afford, things will get worse. Until they pop. That day is closer than it was five years ago, or last spring.

But even without a real estate disaster, swelling debts and inadequate incomes mean families have less to spend on essentials like cars, iPhones, Netflix and tats. Since two-thirds of our economy is based on consumer spending, this pretty much ensures a slowdown is coming.

Look at car loans, for example. Delinquencies are at a post-GFC high, and more people are opting to lease rather than buy since rates increased. It’s all about the lowest possible monthly payment – which is why we’ve seen insane developments like 96-month repayment plans for hunks of metal that might last 72 months.

Meanwhile the debt disease is evident in plunging RRSP contributions, plus TFSAs that are just 10% maxed out. Four in ten people report they’re one missed paycheque away from a crisis. Our national savings rate has dropped to 0.8%. Yikes. From 1981 until 2018 it averaged 7.8%. In the US the rate is 7.6%. This is the result of Canadians carrying the biggest personal debt load (measured against the economy) in the entire western world. A bank survey found 32% of citizens between 45 and 64 have saved nothing. Zero. They’ll be retiring on the piteous public dole.

A constant theme of this pathetic blog is that our fetish with real estate has created this disaster-in-the-making. Close to 70% of us have property, but a minority have the liquid assets necessary to finance their lives, while they are carrying epic amounts of debt.

Of course, you’re not included in any of this. You come here. Must be smart.

But nobody will be untouched if the debt tsunami hits. Here are six things to consider doing. Soon.

First (duh), stop borrowing to finance consumption. Second, only borrow if you can achieve tax-deductible debt, used to increase liquid assets. Yes, there is logic to removing equity from real estate and placing it somewhere with a better future.

Third, calculate your net worth (assets less debt). Then apply my Rule of 90. The proper percentage of NW to have in RE is 90 less your age.  So a 25-year-old debt slave can still have hope. But a 65-year-old Boomer best beware. Fourth, rates are falling as the economy softens, so use this as a tool to reduce high-cost debt.

Fifth, strive for balance in your portfolio. As central banks add monetary stimulus (lower rates), bond yields will fall more and bond prices rise. You need some, since they also counter inevitable volatility on equity markets. Meanwhile preferreds have been sideswiped by falling rates, but offer a 4.5% dividend rate and cheap taxes. Love them both.

And, six, don’t have home country bias. Go beyond maple. Canadians have created their own made-here debt crisis which could whack the dollar and stifle economic growth. Nothing wrong with some exposure to the Canadian equity market, but be at least equally weighted in both US and international securities. Plus, as oft mentioned, it’s wise to keep a quarter or so your portfolio in US$.

So, how much do you owe? What’s your net worth? Are you ready?

About the picture:

“Saw these handsome doggos on the way to my son’s training session the other day in Calgary,” says Matt. “Looked like any other family to me. Happy Mrs, gruff Dad, irritated teenager. Thanks for the blog!”

199 comments ↓

#1 JSS on 03.28.19 at 4:32 pm

Age 45, married, two kids.
Net worth: $890K.

Does not include DB pension, last estimated at $300K last fall (do we include DB pensions into the net worth calc?).

Also, I like long walks on the beach.

DB pensions (or pensions of any kind, including CPP) are not included in NW calcs. You do not possess them, and they can be changed/reduced or disappear in decades ahead. – Garth

#2 Captain Uppa on 03.28.19 at 4:37 pm

If I did your Rule of 90 right, I am $135K too much into RE.

To be honest, as a GTA’er, I thought it would be worse. I’m so Canadian, aren’t I?

#3 TraderX on 03.28.19 at 4:38 pm

EXCELLENT WRITE UP!

MAY EVERY CANADIAN READ THIS!!

#4 Canadian Bacon on 03.28.19 at 4:40 pm

There’s an awful lot of zeroes in those trillions you speak about. And if my grade 3 math serves me correctly, zeroes add up to a nothingburger.

A billion is a thousand times a million. A trillion is a thousand times a billion. – Garth

#5 Re-Cowtown on 03.28.19 at 4:41 pm

A good friend of mine works at a car dealer. A customer came in with transmission trouble on his truck. Bill was around $3K. No cash to pay for repair. Warranty gone and still underwater on 7 year lease. What to do?

Yep… rolled $3K + underwater into lease on new truck. Now at 9 years. Un-fricking believable. Too broke to fix the old truck but not (yet) broke enough to buy a new one.

#6 Krystian Zimoch on 03.28.19 at 4:48 pm

Thanks for the good blog Garth. My personal situation got improved greatly thanks to your daily reads.

Net worth approaching 1M, no real estate, renting in GTA 3 bedroom apt, just loaded RRSP’s, TFSA’s and margin accounts – mine and my wife’s.
Churning 5K in divvy’s per month. Feels great not to be pressured to go to work every morning. Happy to pay 1.9K rent every month.

At work I wonder and ponder, what do I do next with my live –
—————————————
40 year old accountant in mediocre accounting firm making mediocre $$$

#7 Property Accountant on 03.28.19 at 4:50 pm

hanks for the good blog Garth. My personal situation got improved greatly thanks to your daily reads.

Net worth approaching 1M, no real estate, renting in GTA 3 bedroom apt, just loaded RRSP’s, TFSA’s and margin accounts – mine and my wife’s.
Churning 5K in divvy’s per month. Feels great not to be pressured to go to work every morning. Happy to pay 1.9K rent every month.

At work I wonder and ponder, what do I do next with my live –
—————————————
40 year old accountant in mediocre accounting firm making mediocre $$$

#8 The Real Mark on 03.28.19 at 4:53 pm

I often lay awake, in my parents basement, thinking of all the opportunity which has arisen from these markets in the past few years as we prepare for the inevitable appearance of deflation in our economy. All the signs have been present since the peak of the Canadian housing market towards the end of 2013.

I’ve often recommended Ross Kay for all here. Please go listen to his latest podcast on howestreet.com. My personal favourite aspect of his delivery is his laugh. His laugh makes me feel like I’m listening to the words of a man who really knows what another man needs to hear.

#9 Chaddywack on 03.28.19 at 4:54 pm

In my 30s.

Net worth about $450k in investments.

No debt, but a renter so no hard assets.

Don’t smoke weed or have any tats, so I’m not worried about cutting discretionary spending other than video games.

#10 bob on 03.28.19 at 5:00 pm

garth – so percentage of net worth in real estate does that include income properties such as apartment buildings ? or you mean your own private home ?

Yes, all assets. – Garth

#11 Bob Dog on 03.28.19 at 5:02 pm

Please edit and change “we borrow” to “they lend”. Canadians paid bank CEOs over 60 million$ last year to run the countries finance system in a responsible manner. If too much debt is out there, it is the fault of the lender not the borrower.

The average Canadian should not be required to be an expert in finance any more than they should be able to write an algorithm to traverse a directed graph to find the shortest path between two nodes.

Canada is under attack by financial terrorists. Your government knows this. Your government is encouraging it. Your government is a corrupt puppet regime receiving orders form these financial arch criminals.

Please try to be more accurate when assigning blame for the economic disaster we are experiencing.

#12 Sean on 03.28.19 at 5:04 pm

If the outlook is long, say 30 years+. There is an argument to be fully into equities only. Even if you bought at the peak before a crash, you’d be ahead of a mixed asset class in the long run.

Thoughts on these all in one ETFs?

VEQT all equity or a range that goes up to 80/20 bonds with VCIP.

#13 Michael on 03.28.19 at 5:07 pm

Do you mean 1.44 trillion, rather than billion sits in mortgages?

Yup. – Garth

#14 Vipi on 03.28.19 at 5:07 pm

Young couple here (32 and 29) and both working in tech. Net worth ~1.1M and all liquid. Currently rent, but looking to buy soon in Vancouver. Would like a SFH, but any house that is move in ready and is not falling apart is > 1.6 M… an amount which makes me very uncomfortable. Now looking at townhomes in roughly ~1 M range.

#15 ddm on 03.28.19 at 5:07 pm

35 year old married with two children under 4. home worth 1.6m in downtown toronto. no mortgage, universal life insurance of 2 million and about 50k in cash. some other assets include a pair of paid off cars and a micro business. we have a 700k HELOC that we never have used!

#16 Millef on 03.28.19 at 5:12 pm

Slowdown coming, absolutely – already in process of course.

We do have the ponzi-like trick we regularly pull-off as a nation: demographic change (immigration growth) driving natural demand.

Eg. Canada’s population increased 1.4% YOY in 2018, and the economy grew (I believe) 1.8%. So we pat ourselves (or politicians do) for good economic growth, when in reality growth was 0.4% per capita, and the cost of everything you buy went up more than that and your wages were stagnant.

Expect more of the same in 2019 and beyond. Terrible economy, but immigration to drive more Rogers subscriptions, TTC tickets, Pizza pizza slices, hydro power, etc, etc.

Our quality of life just keeps going down.

#17 Leo Trollstoy on 03.28.19 at 5:12 pm

OMG the posts today will be an epeen shatshow

Honestly if NW isn’t 8 figures I wouldn’t advertise it

#18 That guy driving the beater on 03.28.19 at 5:13 pm

59 years old, married, no children
Net worth approximately $9.5 million
No debt.
Real estate in home $1.7 million.
Real estate in rental properties out of country: $1 million, with a cap rate of over 9%.
Fully-funded RRSPs and TFSAs for myself and spouse

I’m probably an outlier. But I’m ready.

#19 Smartalox on 03.28.19 at 5:13 pm

Does the Net Worth calculation include life insurance policies as assets? Or is it just liquid and real estate assets, minus liabilities?

No insurance policy. – Garth

#20 Penny Henny on 03.28.19 at 5:16 pm

Who’s the blonde in the backseat?

#21 TurnerNation on 03.28.19 at 5:17 pm

Thank you for your donation.

#22 not 1st on 03.28.19 at 5:18 pm

DB pensions (or pensions of any kind, including CPP) are not included in NW calcs. You do not possess them, and they can be changed/reduced or disappear in decades ahead. – Garth


Technically, that can happen to any asset that can be tweaked by govt policy including TFSA and RRSP, RIFs LIFs, RESPS and even your real estate which is subject to property tax and taxes on sale. Remember income trusts? Even cash is deflated by the CBs and FED. Stealth inflation stalks the land as well. Very little you own and control in this world.

#23 active on 03.28.19 at 5:18 pm

Age: 34
NW: $640,000 – all in financial assets

No RE, No Debt.

I AM ready.

#24 Smartalox on 03.28.19 at 5:18 pm

@Re-Cowtown #5:

The best part of THAT story is that the dealer is going to repair the transmission, and flip the old truck to the ‘Used’ lot, for 10x the value of the trade-in.

No CarProof data on that, either, I’m sure.

#25 Ottawan on 03.28.19 at 5:24 pm

NW about 100k, 42, married. Came from the bottom, made something outta nothing

#26 Ace Goodheart on 03.28.19 at 5:24 pm

Assets 2.6 million

Debt : none

1.5 million is real estate.

1.1 million is in 7 portfolios 2 TFSA 2 RRSP and three direct investing

We both still work full time. Pre tax income is $330,000 per year between the two of us. She has a defined benefit pension. I do not.

M 45 Ontario

#27 Ron on 03.28.19 at 5:25 pm

37 years old, Net wealth:

-health
-family
-friends
-peaceful country
-running water
-indoor plumbing
-a roof overhead
-heating / AC
-abundant food
-WiFi
-canine companion

y’all can keep your fancy portfolios and houses; none of it follows you to the great beyond.

“…for my greatest skill has been to want but little.”

― Henry David Thoreau

#28 Smartalox on 03.28.19 at 5:26 pm

Family Net Worth: ~$750k (balanced and diversified)

Been renting for 9 years now, in Vancouver.

#29 Captain Uppa on 03.28.19 at 5:28 pm

Wow, a lot of very wealthy people on here. If everyone is so wealthy, what is there to worry about?

Uppa!

#30 Penny Henny on 03.28.19 at 5:30 pm

Our national savings rate has dropped to 0.8%. Yikes. From 1981 until 2018 it averaged 7.8%.-GT
////////////////////

I remember in 1981 I cashed some Canada Savings Bonds that were paying 17% to buy a motorcycle (Suzuki GS400EZ, $2089 brandy new). At 17% no wonder savings rates were high.

#31 Rick Fast on 03.28.19 at 5:34 pm

Net worth: 1.3 Million all liquid
450k income between two of us
36 Average age between spouse and I (one older one younger)
1 Child
Renting – will wait a few more years for the GTA housnig melt before buying

#32 Penny Henny on 03.28.19 at 5:34 pm

Of course, you’re not included in any of this. You come here. Must be smart.-GT
//////////

Well thank you. And I must say it’s about time you acknowledged that.

#33 Moh on 03.28.19 at 5:34 pm

32 networth 100k. Make an income of 140k incorpated. Looking to buy a semi for 680k brand new from developer with 100k upgrades in Brampton . Prices have come down since 2016 I must say. Brampton doesn’t have much jobs but all my work is virtual and from home so my residence is my money maker.

#34 the ryguy - In cabo on 03.28.19 at 5:37 pm

Wondering Garth for the net worth calculation…how do you account for business’s? Ive heard 3X Cash flow+assets, sound about right?

#35 Dumb Question on 03.28.19 at 5:41 pm

The proper percentage of NW to have in RE is 90 less your age.-GT
////////////

Dear Garth,
Although I am only 54 the rule of 90 says I have the percentage of NW in RE of a 65 year old. Should I buy more house so I am the proper percentage.

#36 WPGWALDO on 03.28.19 at 5:43 pm

60
Zero debt
Just shy of 1 Mil net worth.
Retired

#37 Catalyst on 03.28.19 at 5:45 pm

For the US exposure, alot of Canadian banks have 20 to 30% of earnings from us business. Isnt that diversification enough? They also lend to all industries and consumers I think they are basically an index etf but still unloved from the financial crisis so they trade extremely cheaply. If you owned a big 6 bank etf doesn’t that pretty much set you up for long term success?

#38 skiBUM on 03.28.19 at 5:46 pm

Garth, you suggest 20-25% in US denominated funds. That seems like a good position to average into but for someone looking to build their balanced portfolio starting today, would you still suggest that?
EX. $1M portfolio build, go out and buy $250k in USD denominated assets?
Given where exchange rates are at currently, that seems like a risky move.

#39 Zed on 03.28.19 at 5:48 pm

Age 53 and 56, retired 3 years, renting a beautiful apartment (subsidized by the owner), $6.8 millions invested in individual stocks paying us dividends. No pension, no RRSP. NO DEBT.

We always spent less than we earned and we started investing with our first paycheque.

Overnight success takes a few years.

#40 staying anonymous on 03.28.19 at 5:54 pm

…but post often.

42, married with 2 kids in diapers.

net worth – $1.8m+ and no house, we rent

#41 oakville sucks on 03.28.19 at 5:54 pm

#27 Ron

I have a lot of admiration for you! People have a lot to learn from you! You have the right attitude at the end of the day.

All these portfolios will be appreciated by those (and their spouse) who inherit the money. The individual who worked their ass off and foregoes his life to accumulate this wealth is the loser at the end of the day! Career, portfolio and sacrifice…Y’ALL CAN HAVE IT!

#42 Brian on 03.28.19 at 5:55 pm

So, if your overweight on principle residence equity does that mean your advocating the Smith Manouvre.

No. It doesn’t work. – Garth

#43 EastVan on 03.28.19 at 6:02 pm

$586k mortgage left on a $2.2M home, no other debts.
$578k savings in TSE/NYSE/NASDAQ, but this includes RESP/TFSA/RSP.

It feels wrong to count RESP as an asset, I guess. I don’t feel it is really mine any more?

Income is dropping every year, not looking forward to mortgage renewal.

#44 Yukon Elvis on 03.28.19 at 6:02 pm

If the debt to income ratio was significant we would have crashed and burned already. Another nothing burger. Release the hounds !

#45 BlogDog123 on 03.28.19 at 6:03 pm

Family net worth about 1.5M, no mortgage, no debt. Bought real estate in GTA before the great recession. Already paid down the big reno. Helps if the wife is also keen on working at a good job. Also helps if you don’t put both kids in rep hockey and do Disney twice a year.

Advice to the 30-something crowd. Don’t you be crazy and buy a $900,000 house in the GTA with your mommy’s down payment. Be like the Millennial Revolution girl and travel the world…

#46 Damifino on 03.28.19 at 6:06 pm

A billion is a thousand times a million. A trillion is a thousand times a billion.
——————————-

Thus, a trillion is a million million.

Scale: A trillion seconds is 31,710 years. Roughly six times longer than all of recorded human history.

Way longer than a Bruce Springsteen concert or a even conservative filibuster in the H.O.C.

#47 YVRTechGuy on 03.28.19 at 6:07 pm

Garth – that’s an interesting comment on Preferred’s. I always expected them to be de-recommended during periods of falling rates… are you not concerned about the same kinda drop as 2015/16 for prefs? Or are you advocating them as always a healthy part of a balanced portfolio? I certainly get the tax credit advice.

#48 Dual Citizen In Canada on 03.28.19 at 6:08 pm

1.5M
Retired
Wife and 2 kids in Canada
Renting since 2011
No Debt
No Mortgage
No Car payments
No Guff

M56ON

#49 SoggyShorts on 03.28.19 at 6:14 pm

I’m just under 40 with just over 10% of my NW in REITs, but that’s as close as I get to owning RE.
1. Do REITs count towards rules of 90?
2. Is it ok to be way under the rule of 90? Forever?
3. Do couples count NW together? (not those weirdos with separate bank accounts- the full-on hitched kind)

#50 Guy in Calgary on 03.28.19 at 6:17 pm

Ah time to read about people lying about their net worth. In before, “I am 25 living in DT Toronto and have $500k liquid.”

#51 Mean Gene on 03.28.19 at 6:25 pm

Why is everyone posting their net worth today, not very sophisticated.

#52 Nonplused on 03.28.19 at 6:27 pm

#4 Canadian Bacon

“There’s an awful lot of zeroes in those trillions you speak about. And if my grade 3 math serves me correctly, zeroes add up to a nothingburger.

A billion is a thousand times a million. A trillion is a thousand times a billion. – Garth”

CB, if it helps you conceptualize the numbers better, you can replace all the zeros in 1,000,000,000 with 1’s and get 1,111,111,111. You’ll only be off by 11%, and the actual numbers probably aren’t much more accurate than that once all the extrapolation, estimates, and rounding are applied. Or you can put it in scientific notation and get 1.00E+09. But if you don’t understand the significance of a zero to the right of a number, scientific notation probably isn’t for you. A zero to the right of a number means the same a “times ten”. So a billion is 1 times ten 9 times, or 1 x 10^9. Those zeros add up pretty quickly.

#53 acdel on 03.28.19 at 6:29 pm

#8 The Real Mark

With your recommendation of Ross latest podcast on real-estate and Garth’s excellent advice today; we are well served. Thanks all.

#54 Smoking Man on 03.28.19 at 6:29 pm

In Canada things cost more that USA
In Canada you make 1/2 as much as you would in USA
In Canada twice the income tax for good incomes. No more income splitting.

No wonder it’s at 173%

Why anyone stays who can come down here boggles the mind.

Now
Go leafs Go ….

#55 LJ on 03.28.19 at 6:31 pm

Where would you stick rental Farmland?
Investment or Real Estate?

It returns about 5% (of assessed) after taxes, will have generous capital gains and has no maintenance expenses.

Yes, it’s just simple dirt, not an organized pile of depreciating rocks and sticks with some furniture stuffed in the corners (which we tend to label “real estate”).

#56 jess on 03.28.19 at 6:32 pm

https://www.msn.com/en-ca/money/topstories/indigenous-pipeline-bidder-ok-with-principles/ar-BBVlOmk?li=AAgh0dA

#57 Bill Morneau on 03.28.19 at 6:35 pm

Assets

20.6 million in Cayman Islands

100+ million in several Canadian corps (Bombardier, Lavlin, Plan Canada, WGSI University of T, McGill University)

several hundred million in real estate (France, Monaco)

1.5 million is real estate (my Toronto home)

1.1 million is in 7 portfolios managed under Morneau Sheppell.

We both still work full time. My daughter has taught me that a housewife does working unpaid work, and I pay my wife a stipend of $100,000 monthly for helping the kids go to extra curricular. We pay the nanny $14/hr and she gets to sleep in the laundry room for free.

Pre tax income is $330,000 per year between the two of us. She has a stake in McCain corporation. I do not. I promise.

P.S. How many of you are declaring your dividend incomes this year?

M 50s Ontario, Liberal

#58 lionsroarin64 on 03.28.19 at 6:37 pm

Be floored: sought-after Florida condos are often sold – legally – for $1.
https://nypost.com/2019/03/27/florida-apartments-in-country-clubs-are-trading-for-as-low-as-1/

#59 Eco Capitalist on 03.28.19 at 6:38 pm

So, that remaining 526 million in consumer debt, do you have a breakdown for it?

#60 Better than u on 03.28.19 at 6:42 pm

28yrs old
NW. 25ish mil
5.35mil dwntwn Toronto real estate – no mortgage

#61 Yaletown Renter on 03.28.19 at 6:42 pm

Bring it on, i’m ready!

Single geeky guy, 41yrs old, renter (landlord subsidizing by at least 1k a month), no car, no high school diploma, not worried in the least.

$0 debt
$1.1M in assets (full TFSA & RRSP, plus 750K unreg)
$125K gross annual income
40%+ of net income towards saving/investing

Watching the madness all around me, counting down the months until I can parachute out of cubicle life…

#62 Linda on 03.28.19 at 6:44 pm

Using the rule of 90 plus the 2019 assessed value of the house, we own some 38K ‘more’ than we should in RE. However, the liquid assets continue to grow & the cost of owning our paid for SFH is now annual upkeep/maintenance, property taxes, utilities & household insurance. While we have a HELOC it is at a zero balance – we have it as ‘just in case’ funding – plus we have a dealer financed (0%) 48 month car loan that will be paid in full just over a year from now. No other debt other than what we run up each month on the credit card & which we pay if full to avoid any interest being charged.

In short, our income exceeds our expenses and our liquid assets more than suffice to ensure we need not stake out the nearest dumpster should the economy go into a tailspin. Living in a happy place:)

#63 ????? on 03.28.19 at 6:44 pm

#45 Damifino on 03.28.19 at 6:06 pm
A billion is a thousand times a million. A trillion is a thousand times a billion.
——————————-
Thus, a trillion is a million million.
————–
But how much is a gazillion?

#64 The Wet One on 03.28.19 at 6:46 pm

Garth,

Quick quibble with your real estate proportion, that 90 – your age is for the percentage of your net worth that’s in the equity of the home in which you live, right?

I mean, rental real estate, let’s say you own 10 houses and live in a condo. I’ve met that person. She made a lot of money while young and well, that’s what she chose to do.

Let’s say she reaches age 75 and never sells the rentals.

Why shouldn’t she keep the rentals? By this point, the mortgages have been paid by past tenants, the rent minus taxes and other costs (the biggest of which is the mortgage) goes right into her pocket. And so on and so forth.

Now, while this isn’t necessarily the best situation, it’s not a terrible one and calls into question the rule of thumb you quote.

But if that same value was all in the house you own, well then you’re clearly screwed. Property taxes, cost of heating the beast, so on and so forth, all come out of your pocket (not your tenants). This is an issue.

But if you don’t live in those 10 houses, well, what’s the problem?

Help a guy out, would ya?

For the record, I have about 60% in financial assets and 40% in RE (that I live in) and I’m 44.

That’s a good point about the pension. I’ve got a very good pension, but whether it will be there in 21 years?

Well, who knows right?

We’ll see…

#65 tccontrarian on 03.28.19 at 6:47 pm

#17 Leo Trollstoy on 03.28.19 at 5:12 pm

OMG the posts today will be an epeen shatshow

Honestly if NW isn’t 8 figures I wouldn’t advertise it
///////////

Net Worth: $108,750.25 – there you go, 8 figures! :)

(Real) NW will be quite a bit greater than what it is now, in 12-18 months.
I’m wagering than most others’ will have shrunk. I read in a horoscope.

——————————-

That chart of household debt, US vs Cnd. — well, all I can say is that ‘gap’ HAS TO close.

Conclusion, either Americans are going on a debt-binge in order to catch up with us, or Canadians are hooped (many of them, anyway).

For me, there’s no “if”, Garth. It’s “when”.

TCC

#66 bob on 03.28.19 at 6:48 pm

garth – so percentage of net worth in real estate does that include income properties such as apartment buildings ? or you mean your own private home ?
Yes, all assets. – Garth

Ok well personal home worth 1.5 m paid
another 2m invested in rentals
positive cashflow of 200K
so don’t know why I would sell them
another 1 mil liquid in tfsa and unregistered

#67 The Wet One on 03.28.19 at 6:52 pm

To answer this question:

“Wow, a lot of very wealthy people on here. If everyone is so wealthy, what is there to worry about?”

Wealthy people are those who actually bother to worry about wealth and money. It’s those who have none who tend not to worry about it.

Which is unfortunate.

If more people did worry about wealth and money earlier in life, they’d all have more wealth and money. But they don’t so they don’t.

People who worry and think about wealth and money come to Garth’s blog. Those who don’t think about wealth and money (i.e. those who don’t have much or any) likely don’t come here. Why would they? They’re not interested in it after all.

It’s a weird quirk, but that pretty much explains it.

Oh and I’m $385K in debt. But net worth is $330. So I’m not completely screwing this up, but yeah, it’s not great.

Sigh…

#68 tccontrarian on 03.28.19 at 6:53 pm

#27 Ron on 03.28.19 at 5:25 pm

37 years old, Net wealth:

-health
-family
-friends
-peaceful country
-running water
-indoor plumbing
-a roof overhead
-heating / AC
-abundant food
-WiFi
-canine companion

y’all can keep your fancy portfolios and houses; none of it follows you to the great beyond.
///////////////////////////////////

Nothing wrong with that, Ron. I would have said something similar at 37.

It was at 47 when I realized that my then trajectory was insufficient and got busy changing course.
Best decision I ever made!

Financial freedom affects well-being in ways I never had considered. Only question is, “which sacrifices do I make?” Can’t have the cake and eat it…as they say.

TCC

#69 Another Anonymous on 03.28.19 at 6:54 pm

Basically restarted at about the age of 40. Found someone who had the same thoughts (finance, life style) as I. Hope everyone here does not have to worry about restarting life mid-career.

20 years on:

Partner and I: Assets (*) over 3 mil, that includes the house, MPAC of about 525k. Garth says we should be about 30% (1/3) we are about 1/6 real estate. No debt.

Currently work for fun, live on one salary, so saving the other. We’ll stop work sometime, but if you enjoy what you do, and have incredible flexibility with work, why stop working? The money is very good; no worries about financial stuff.

Note: “Net Worth” is hard to calculate; did try to figure out tax bite, but the calculations got pretty obtuse and fictional. So, I called it “Assets”.

#70 Dolce Vita on 03.28.19 at 6:56 pm

0 debt.

About $600K net worth most of it liquid, invested (own a fully paid for condo in NE Italia). Had high paying jobs but opted later in my career for Academia to regain a balance between work and play.

And yes, I am one of those disgusting DB pension people, after taxes, net = €2,400/mo.

Single, so an easy, financially stress free life in retirement where I never have to look over my shoulder out of fear. For the most part I can buy and/or do as I please within reason.

#71 not 1st on 03.28.19 at 7:05 pm

Wow every body is ready for ready for a RE crash and are all in financials to protect themselves. Maybe its cause you have the wrong real estate class.

1100 acres of prime farmland, 800k in financials, home quarter protected in perpetuity from lender confiscation by legislation, spare ammo in the shed, gold in the cellar. Aint no govt or central bank gonna touch me.

#72 Wiggleroom on 03.28.19 at 7:08 pm

Last time you asked in 2014:

Home – 1 million (mortgage free)
Financial assets – 350k

NW – 1.35 million

————————-

Now:

Home: 1.7M
Financial assets: 1.3M
NW: 3M

#73 Cash is King on 03.28.19 at 7:15 pm

Chrysler announced they are laying off the midnight shift at the Windsor Minivan/Pacifica plant.

I’m guessing the 1,500 people being laid off are calculating the amount of debt they have as I type.

Close to a 1,000 hired in 2016/17 and now 1,500 laid off in Sept 19.

Meanwhile, in the rarified air that is an Ontario teacher, they are having “Red Friday’s” in protest of Doug Ford’s class size reductions. Dougie has not even begun to sharpen his cutting tools.

#74 All Equity Cowboy on 03.28.19 at 7:16 pm

45 years old (feel like I’m 65).
$3.9M In equities. $20K cash.
1M Primary Residence (I’m guessing, after appalling and exorbitant RE commissions). No mortgage.
A beater Toyota.

#75 I see debt people on 03.28.19 at 7:16 pm

I have a sixth sense: I see debt people. They don’t know they are debt. They continue to haunt the world as if they were not debt. I see them everywhere. I see them in the malls, in their houses, in their cars, at concerts and sporting events. Every day they are more debt than they were before as they slowly fade away but they don’t know they are debt.

When I travel to the US, I see many debt people there too, but they aren’t as debt yet.

The credit prey upon the debt. If time truly is money then labor is life. The credit, even if they don’t know it, are sucking the future life out of the debt. But the debt seem to go willingly to go to that dark place.

“Know your neighbors and know they’ll take us
Know my city it’s just like theirs are
Hope I make it I know I’m gonna make it somehow… Know my savior he knows you shakers
Know my pity I’ll see you later
I’d like to stay but I know it doesn’t matter somehow…

I’m on the last american exit to the north land
I’m on the last american exit to my homeland
I’m on the last american exit to my last chance
They keep calling out my name, I shout it down”

– Tragically Hip – Last American Exit

“Neither a borrower nor a lender be. For loan oft loses both itself and friend.” – Often attributed to Jesus but it was actually Shakespeare.

In Jesus time “usury” (the loaning of money at interest) was illegal and thus no loaning of money was ever done. Instead, those with money invested in a portion of the venture. An example might be a rich person might invest in a farmer’s crop so the farmer could buy seeds and pay labor, but the investor got paid back with an agreed upon portion of the harvest, and faced market rates for the crop same as the farmer did. He/she/zee did not get a fixed amount of money back with interest regardless of crop yield and market prices, bankrupting the farmer. So Jesus didn’t know anything about modern banking because it hadn’t been legalized yet.

(Strange thing about the bible, the stories are very instructive but have zero predictive capabilities. Apparently God cannot predict the future either. He/she/zee has a very good handle on human behavior though.)

One of the most curious things about modern finance is that investors and lenders are usually ranked in tiers. This was illegal in biblical times. So for example, the owner of a house with a mortgage now bears all responsibility for the entirety of the loan in the case he/she/zee cannot pay, the bank takes no loss unless the resale value is less than that of the loan. This stratification is also seen in corporate finance, where investors get wiped out in tranches. First to go is unsecured credit, then class B shares, then class A, and then finally secured creditors. The secured creditors are really the only ones that own anything. This is a modern invention. I’ve been through a chapter 11 filling before. Each creditor had his/her/zer own asset that he/she/zee got to take possession of post bankruptcy, the supposed owners got nothing.

The modern world of finance is rigged, intentionally, in favor of the credit and against the debt.

#76 expat on 03.28.19 at 7:16 pm

My mom and dad taught me long ago never to discuss our wealth in public. Most importantly never show it.

But that is now my belief.
Fill yet boots if you wish
Kinda like showing pics on Facebook where your kids go to school.

#77 S.Bby on 03.28.19 at 7:17 pm

Remember Carl Sagan in Cosmos:
“billions and billions”. How 1980s.

Now it would be “trillions and trillions”…

#78 OK_Shiftworker on 03.28.19 at 7:22 pm

“Those numbers are hard to digest. They suggest people have borrowed so much money against the future that it’ll take decades (forever, if we don’t stop borrowing) to move the needle.”

Defaults moved it down in the US. I suspect loan defaults will force banks to clean up balance sheet here too.

#79 mitzerboyakaQueencitykidd on 03.28.19 at 7:25 pm

I love rock and roll put another dime in the jukebox baby

#80 TurnerNation on 03.28.19 at 7:27 pm

This weblog really resonates.
As a townie workie by day, and by night a rubby mook -hitting dive bars with my merge rations for some chicanery.

Whosoever might promise Buck-a-beer will earn my tick.

#81 crowdedelevatorfartz on 03.28.19 at 7:29 pm

@#62 ??????
“But how much is a gazillion?”
+++++
If you have to ask that….you cant afford it.

#82 dakkie on 03.28.19 at 7:41 pm

Canadian RECESSION Coming SOON! – The TRUTH About The Coming CRASH

http://www.investmentwatchblog.com/canadian-recession-coming-soon-the-truth-about-the-coming-crash/

#83 Oakville Rocks! on 03.28.19 at 7:52 pm

54 with 1.7M – 700K of that is real estate. No debt.
Also 25% share of family business with 4M in retained earnings. The business has no debt.
More importantly, 2 great parents, both still living, mostly healthy and well off.
1 dog, 2 cats who live with me facing a ravine and great walking and biking trails.
Awesome vinyl record collection and growing.

Lastly just let me add GO LEAFS! GO RAPS!
Okay Blue Jays – Let’s Play Ball!

#84 Glen B on 03.28.19 at 7:55 pm

57, No Real Estate (almost none), absolutely no Debt of any kind, and a healthy liquid net worth enough to weather a financial storm. However, I still worry that what I have will not be enough when I retire. Many of my friends live paycheck to paycheck and are broke.

#85 Dan MacPhearson on 03.28.19 at 7:55 pm

We have a $3 million financial net worth, no debts of any kind. We have 1/3 in U.S. 30 year treasuries 4.6% to 4.8% coupon rates back in 2010, bought at $99 to $101 near par. These are all at 25% to 30% appreciated current values not including U.S.$ currency gains.

The other 2/3 is in Canadian, provincial bonds,corporate bonds, GIC’s, preferred stocks mostly Canadian banks, financials, REIT’s, consumer staples. These are all yielding at around 4.0% on average and have capital appreciation of at least 65% from the last 8 to 9 years.

All our fixed income is in RRSP’s, TFSA’s mostly except U.S. treasuries. Dividend payers in our joint cash accounts. This is the real way to go.

The last great home run investment we made was U.S. treasury bonds bought last year at near 4%, 3.945% and the C$ was much higher at least 10% higher meaning getting much cheaper U.S. dollars. The U.S. 30 year treasury I am hearing is going to 2.4% in coming weeks. Wow!

We will be buying again when rates go higher which could be another year or so, I am hearing 3.25% to 3.35% in 2020 for 30 year U.S. treasury bonds.

#86 anon on 03.28.19 at 8:02 pm

37 years old married renter, both wife and I do not want any offspring. I was about 10k in debt before discovering this blog.
NW today sits at about 420k. household income about 180k net.

Thanks for the blog you old pecker.

#87 The Real Mark on 03.28.19 at 8:03 pm

“#8 The Real Mark on 03.28.19 at 4:53 pm “

I see the imposter is back. Seriously, get a life.

#88 Ron on 03.28.19 at 8:07 pm

I don’t want to give anyone the wrong idea; I save and invest like all the other miserly 1%-ers on this blog.

My point is that it doesn’t take much at all to live a rich life. A bit of mental, physical, social and spiritual stimulation doesn’t cost much at all. Everything else is vanity.

The real trick is overcoming that Status Anxiety that creeps up when we don’t have a conspicuous way to present our success to others. In Canada, Status Anxiety is an epidemic.

But you know what real status is? It’s being the guy or gal that everyone wants around. It’s being in top physical shape. It’s having the sickest dance moves on the floor, piano chops, or sinking one 3-pointer after another. Those things can’t be bought with any amount of money.

#89 Sail away on 03.28.19 at 8:08 pm

Age 47, married, homeowner, business owner, no debt, 2 kids in university, and one question: is the sailboat an asset or a liability?

#90 Y on 03.28.19 at 8:11 pm

Couple 36 and 30 years old. Zero debt, renters, above 200k in financial assets.

#91 Herb on 03.28.19 at 8:21 pm

Garth, how many years have you and I been arguing about blaming the victims? If you look at your nice chart, the inflection/departure point between American and Canadian debt levels just happens to coincide with Harper’s Elfin Deity and extend-and-blend mortgage moves. And that World War II recovery relic called CMHC providing the guarantee that our sterling banks would only have to worry about pocketing interest, not eating mortgage failures. The GFC hit both sides of the border, but there was a difference here.

Canadians could be as house-horny as the RE industry could make them, but if government and Bank of Canada had not yielded to the entreaties of the FIRE sector, they could not have borrowed their brains out to buy, there might be money for retirement, and we wouldn’t be talking about a debt crisis.

#92 ShouldhaveSOLD on 03.28.19 at 8:21 pm

52 married 51 wife and 2 teenagers
2018…. 4.2 M
2019… 3.8 M
North Van house went from 2.25 to 1.75 if it could sell
I include DB pension in NW because we’ll take it as lump sum with in 5 years

#93 js on 03.28.19 at 8:22 pm

So we’ve established that there is a disconnect between wages and spending. Isn’t it true that spending at the margin can only happen if there is additional income (in the form of a debt or laundromat services)? The only such source of unlimited funds was the forever growing equity in peoples’ homes! All but a few saw this party going on indefinitely, a very Canadian experience. Please don’t kill the party now!

#94 earthboundmisfit on 03.28.19 at 8:23 pm

In calculating NW, do you use the full value of RRSPs, LIRAs, etc …. or only the part that the government doesn’t own?

#95 Mab on 03.28.19 at 8:34 pm

You know….given the impending ecological and environmental apocolypse….maybe Justin should just sit this term out. Let theother guys take the heat for our self centered hedonistic ways…..

#96 DrinkDiveDance on 03.28.19 at 8:35 pm

Age: 38
Net worth: ~4mil
Debt: 100k brokerage margin loan

No house. Rent for 1.5k.
~5k in dividends per month.

Assets:
New Car: 50k
Half in USA stocks
Other half in CDN preferred and bonds

Pretty much waiting for the recession to happen and housing to drop.

#97 PastThePeak on 03.28.19 at 8:36 pm

Net wealth:

-health
-family
-friends
-peaceful country
-running water
-indoor plumbing
-a roof overhead
-heating / AC
-abundant food
-WiFi
-canine companion
+++++++++++++++++++++++++++++++

+ $2M ($700K is in RE – we don’t live in GTA or BC…), some guns and some ammo up at the parents farm…

49 with spouse and kids, so that is our family NW. No pension, so the financial investments are all that will fund retirement.

Nothing flashy or showy – avg size SFD, regular cars – take a couple of vacays a year though (good family memories). Currently helping out aging and ill parents.

Intention is to semi-retire early rather than build up a war chest.

Ready for the coming great Canadian recession? Should be.

#98 Diversified in Oakville on 03.28.19 at 8:46 pm

Age 59
NW 1.9 M. Calculate Quarterly. (Just because)
Portfolio. Balanced and globally diversified, 100% etf’s. Thanks Garth.
R.E. Net is 750,000. House and rental condo.
Are we ready? You bet, freedom 60 baby!!

#99 Samuel on 03.28.19 at 8:59 pm

Early 40s. Net worth around $2.5 million (would have been $500k higher but I decided to be a cowboy and got bucked off). Debt just over $300k. I sure don’t feel secure or ready.

#100 David on 03.28.19 at 9:03 pm

Scrolling through the comments it seems there has not been a comment as such but mostly comments about millionaires.

26 years old – single
$54,000 contributed to tfsa
$8000 checking account
Renting
Contribute to defined pension – $7000/year

#101 reynolds531 on 03.28.19 at 9:04 pm

What is it a Weiner measuring contest tonight?

#102 akashic record on 03.28.19 at 9:04 pm

Have you all deducted your per capita share in public debt?

#103 Doing Ok and thankful on 03.28.19 at 9:14 pm

Garth,
Age: 44
Debt: $0
Real Estate: $700K
Liquid Assets: $800K
Just meeting the rule of 90

#104 WDL on 03.28.19 at 9:19 pm

I am 58.
I have own a farm I could easily sell for $4 million (but I’m not eager to sell it). I owe $260,000 on the farm.
I have no other debts or lines of credit.
I have over $900,000 in financial investments, RRSP’s and TFSA’s almost maxed out, and own a company with a value of $600,000.
I think I’ll be fine.

#105 -=jwk=- on 03.28.19 at 9:22 pm

The rule of 90 is working backwards for us. Right now mid 40’s we are about half NW in RE. Ok, fine. But over the next ten years we’ll be paying off a lot of RE debt as we’ve hit the tail end of our various mortgages…thus every year having more and more NW in RE. Whatever. We should be counting the investment properties as income streams not capital assets anyway. Also totally counting our DB pension.

#106 Nonplused on 03.28.19 at 9:31 pm

#88 Sail away

So far as I know all boats are a liability if they are not rented out for transportation of goods, like a sipping vessel or cruise ship or something. If you have a boat, it is likely a huge liability.

#107 Brett in Calgary on 03.28.19 at 9:41 pm

LOL, totally. ;-) Always makes me smile.
———————————————————–
#50 Guy in Calgary on 03.28.19 at 6:17 pm
Ah time to read about people lying about their net worth. In before, “I am 25 living in DT Toronto and have $500k liquid.”

#108 Man of the Cloth on 03.28.19 at 9:42 pm

Age…..61.
Married…..40 years.
Two kids…..both working and happy.
Ten year survivor from prostate cancer.
Can’t get much richer than that.

#109 cowtown cowboy on 03.28.19 at 9:46 pm

Married, each 50
Assets: $1.150M or so
Liabilities: $380k, mainly mortgage and $50k in tax deductible LOC
Net Worth: ~ $770k

Finally got the wife back to work and currently pushing $300k/yr, trying to save ~ 50-60k/yr so that my retirement isn’t living in a trailer park in Black Diamond..

#110 Barb on 03.28.19 at 10:01 pm

Don’t owe a penny, no mortgage, no credit card debt.
NW almost entirely in residential property which is for sale (oh oh!)
Investments just over 500K.

But that’s also a sign of how old we are…

Old and comfortable, but we were broke when young.
Been quite a ride.

#111 PeterfromCalgary on 03.28.19 at 10:05 pm

Why the hell do people need new cars. Don’t they have cell phones which they can use to call a tow truck, taxi or Uber.

I am the proud owner of a shitty car with no payments. I can afford to call a tow every once and while because I don’t got any car payments.

#112 DON on 03.28.19 at 10:06 pm

So?

****

When I read this word I had a feeling where this post was heading.

Everything Garth has laid out has been in the media lately.

How about the ever increasing Helocs that the 45+ crowd are taking out against their house equity, especially in the last 3 – 6 months.

#113 Vampire Studies on 03.28.19 at 10:16 pm

For those of us in the more bubbly parts of the country,
I think the rule of 90 should be re-considered, as it can look way out of whack even if you have a seven figure
investment portfolio.

Many wealthy people have private equity in valuable businesses, but this is not counted in most stats, so it gives the appearance that you “only” need a bit over $1M to be in the 1%. Many of these people also do not realize large incomes, so neither do they appear in the top 1% income earners.

These businesses can have value in plant and equipment, or inventories of goods.

If you are a professional, you may not have this equipment or inventory, and your business is built mostly on goodwill. If you are a sole proprietor, this means your business is almost worthless as once you are gone, so is the goodwill. If you have partners, then at least you are selling an interest in an ongoing enterprise.

Personally, my time to retire may be driven more by my
desire to not deal with work anymore. I’ll have what I have, and it may be enough already, depending on my expectations.

#114 Yuus bin Haad on 03.28.19 at 10:19 pm

Gather ’round kids – it’s time to re-tell the Parable of the LOC. “It was said that Michael, turning two score and twelve, …”

#115 SoggyShorts on 03.28.19 at 10:24 pm

#96 DrinkDiveDance on 03.28.19 at 8:35 pm

Age: 38
Net worth: ~4mil
Debt: 100k brokerage margin loan

No house. Rent for 1.5k.
~5k in dividends per month.

***********************
Only 5k in divs on 4m? Why so low? Even the most basic investments should average more than a pathetic 1.5% yield…

#116 Rico on 03.28.19 at 10:25 pm

So by this rule of thumb:

Someone who retires at 55 with 35% Real Estate assets. 5 years later their retirement assets have reduced but their real estate is still worth the same.
They now violate the rule of thumb. It only gets worse as they get older.

#117 Ace Goodheart on 03.28.19 at 10:27 pm

So Dundee corp has decided to redeem its series 5 preferreds for common stock (subordinate voting).

What this means is holders of this currently 14% dividend paying instrument will end up with about $24.00 worth of Dundee common stock.

As this stuff is probably close to worthless, everyone is going to likely start trying to cash it out to get their $24.00 back.

If ever there was a stock to short, this is probably the one.

There’s another $130 million in preferreds coming due in September of 2019, and they pay about 12% right now, which is a little over $7 million per year. If they convert those into $2.00 common stock as well, this may end up being the most short-able stock in the history of stocks.

Currently trading for $1.34 per share. Based on the financials, you would have to pay me to take a share of this (it looks negative).

#118 Trojan House on 03.28.19 at 10:29 pm

Things are about to get a lot more expensive on April 1st – Trudeau’s carbon tax kicks in.

#119 Bottoms_Up on 03.28.19 at 10:30 pm

Funny pic. The middle class is tapped out. We need good jobs and steady wage gains.

#120 Price Tags Mean Nothing on 03.28.19 at 10:31 pm

For all the hopefuls who keep quoting what the price tags are on their properties.

Good luck – you may already be underwater or sliding under fast.

Price tags are nothing to rely on/ or bank on until the money is in your bank accounts!

#121 Turn on a dime on 03.28.19 at 11:02 pm

Gf and I have >$2M net worth incl $600k liquid, $3M in 5 investment condos, $1M primary residence, $1.6M investment mortgages, $800k home mortgage. In our early 40s and retiring at 50 max is the plan. Risk on baby – Toronto RE has lots of room to run.

#122 NonscrewedCanadiannonmillennial on 03.28.19 at 11:05 pm

Early 40s
GTA-with aging parents
No S.O. and no life so I guess I’ve done this all wrong.
Less than 50k/yr from work
Life savings and “winnings” is pretty much $1.18 mil net in ETFs
$70k apt in an insignificant slow seaside town around the Med (~1%/yr non-resident taxes but I won’t have to pay it once I’m pulling a Canadian pension)

#123 Out Of Work CEO, Will Travel on 03.28.19 at 11:12 pm

In tonite’s blog the last paragraph issues the warning re how our made-in-Canada debt crisis could “whack the loonie” gave me pause. The Canadian has been on a bender now since January and is now ready to crater the 74 mark. Lord have mercy on us and Bless all the Blog peepers and most definitely our currency in which we are all united and in deep; deep denial. I love this blog.

#124 LOLO on 03.28.19 at 11:27 pm

Garth, Your blog is greatly appreciated as are the doggie pictures. Now my question .
my financial advisor has requested the following information. My children’s SIN numbers.
A copy of my drivers licence. The value of my real estate holding or holdings. The amount of money I have on deposit with Canadian banks
So far I have refused to provide this information and have questioned the reason for asking. I have been assured that it is a “Government agency” request and I should comply. Is this true?
Thank you for all you do for all of us.
Little old lady in Oakville.

#125 TRUMP 2020 on 03.28.19 at 11:27 pm

GOODBYE OSHAWA

GOODBYE WINDSOR

GOODBYE ALBERTA

COME ON IN SNC….. LET’s MAKE A DEAL

TRUDEAU …….. WHAT A SHAME!!!

#126 Looney Baloney on 03.28.19 at 11:34 pm

Age…32
Happily married for 9 years, 1 kid
NW in RE: 0
Debts: 10k (0%auto loan)
NW liquid: ~>300k

My body is ready for the coming tsunami.

#127 NoName on 03.28.19 at 11:38 pm

By the looks of it will be only one with debt…

mid 40s
Income 180k
Debt 300k
Liquid 290k
Il-Liquid house 400k maybe 10-15% more

Having kids, house and working is expensive, sometimes feels punitive.

#128 Marty Mcfly on 03.28.19 at 11:42 pm

Sorry but im not buying all these high NWs. Were in debt up to our eyeballs but every one here are multi millionaires.

#129 Steve on 03.29.19 at 12:15 am

Net worth. Zero. Debt also zero. I mean, I have stuff… But just stuff only I like. I have a plastic pteranadon that sits on the pot my rubber plant grows in. I’m pretty happy about that. It’s orange and its beak opens and shuts .. uh, also own my cars and truck. But what I’m probably most pleased with is not owing money to anyone. I feel bad about myself sometimes when I see the rampant consumption in Kelowna. It makes me feel like a loser sometimes. I think a lack of contentment can fuel improper spending. So I try to keep it small and always remember that the so called economy can just up and die overnight. Or I could…. Then who gets to enjoy my plastic death finch? Eh?

#130 Leo Trollstoy on 03.29.19 at 12:31 am

Embarrassin to read all this

Nobody at 8 figures

It’s like boasting that you’re assistant manager at The Gap

Just keep it to yourself

It’s embarassin

#131 Leo Trollstoy on 03.29.19 at 12:33 am

#8 The Real Mark on 03.28.19 at 4:53 pm

That’s gold Jerry! Gold!

#132 The Great Gazoo on 03.29.19 at 12:55 am

“DB pensions (or pensions of any kind, including CPP) are not included in NW calcs. You do not possess them, and they can be changed/reduced or disappear in decades ahead. – Garth”

Zero? Makes no sense to me. I think maybe a discount could be applied, depending on the quality and risk of the pension plan, but zero value in the net worth statement?

So you are saying a person with a DB pension from the federal government (not me) cranking out say $75k per year and fully indexed with no other assets would have a net worth of zero. Doesn’t seem like a reasonable valuation to me.

#133 Toronto guy on 03.29.19 at 12:55 am

Hi garth, quick question, do you think what happened to the states could happen in Canada regarding a huge real estate crash? I rent, and invest like u say 60/40, 25 years old
Thanks
Brody

#134 Rargary on 03.29.19 at 1:05 am

If us Canadians stopped buying houses we couldn’t afford, wouldn’t our economy tank?

#135 Buffet on 03.29.19 at 1:16 am

Net worth 80 billion.
On the Internet, every one can be Buffet.

Why would anonymous people lie? That’s weird. – Garth

#136 Health and net worth on 03.29.19 at 1:21 am

Glad a few of you put good health as part of net worth
Monies not worth anything if your sucking on an oxygen tank.
For me if I am happy, wife is happy good health and a few bucks in the bank yeah!
Are all you millionaires really true?
Then Garth’s statistics are totally wrong based on the blogs posts, makes you wonder.
So long as my mortgage and taxes is less then what you pay in rent I am a happy camper.

#137 Ponzius Pilatus on 03.29.19 at 1:23 am

Braggers,
Be careful.
I know CRA is monitoring this blog.

#138 Gordon on 03.29.19 at 3:50 am

So, the foreign money in real estate deniers have been pickled. It was easy enough to listen to the media lies and local politicians afraid of pointing fingers. But the truth always comes out, the problem is bigger than anyone thought, and was ready to admit to.

https://vancouversun.com/news/local-news/dan-fumano-a-75-billion-snapshot-of-foreign-owned-vancouver-real-estate

How many blog dogs with decades of real time experience bark up and say that the local media and politicians were lying. I seem to remember some offering Garth an all expense paid trip to Vancouver to see for himself. My personal involvement huge, picking up mega rich foreigners and buying multiple houses in a day….every day. I had two hundred fourty sub agents under me doing the same thing. My company was only one of many, not the largest.

#139 Figure it Out on 03.29.19 at 5:02 am

Show us your numbers, Garth!

We’ll allow for Anglo-Saxon financial reticence, so you can just give us the percentages, not the dollar values.

#140 under the radar on 03.29.19 at 5:03 am

56 , married 30 years , happy, fit and healthy. Asset manager for my children. Enough said.

#141 Middle Canada on 03.29.19 at 6:28 am

46 and 42
Combined income $180K
Kids 2 (both rep hockey players, including a goalie $$$)
House $700K (mortgage $165K)
Consumer debt $0
RRSP/TFSA – $100K
2 Defined Benefit Pensions
All 4 grandparents alive and well

#142 Reality is stark on 03.29.19 at 7:08 am

Net worth is tricky.
I have a few buddies who made at least 3 times the income I did and owned homes prior to marriage.
They all lost their houses. Do not kid yourself, divorce is not 50/50. You still have the opportunity to lose everything through no fault of your own.
This is another great advantage of being Canadian.

#143 Y. Knott on 03.29.19 at 7:12 am

(60’s, DB-pensionable but still working, half-mil assets and bang-on Rule of 90’s.)

#24 Smartalox on 03.28.19 at 5:18 pm
@Re-Cowtown #5:

The best part of THAT story is that the dealer is going to repair the transmission, and flip the old truck to the ‘Used’ lot, for 10x the value of the trade-in.

No CarProof data on that, either, I’m sure.

I remember an old Mad Magazine poem that might apply to the truck:

“When I was a used car salesman, I heard my dealer say
“Give free balloons to kiddies, but not this Ford away.
Talk loud about no cash down, and thirty months to pay;
Give radios and heaters, but not this Chevrolet.”

When I was a used car salesman, I heard him say again
“Sell each clod some Jalopy; don’t let his interest wane.
Put sawdust in transmissions, claim recapped tires are new”:
Now I’m a used car dealer; and oh, ’tis true, ’tis true.”

#144 DMER on 03.29.19 at 7:12 am

Are the top 1%ers the only ones who read this blog? By the responses one would think so.

Turned 42 on Tuesday – finally getting over hangover. Don’t like to work full time so income has never gone over $40k. Would prefer to enjoy life. Laugh lines rather than frown lines is what I live by.
$130k stocks 7% dividend yield and growing, $7k LOC.

#145 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 03.29.19 at 7:58 am

Blow Jays silenced by Detroit, 2-0.

What a completely pathetic performance for a home opener.

Attendees described the atmosphere a “like a morgue” at the Rogers Overpriced Cable Centre.

(Maybe because those few attending are constantly looking down at their phones, hoping for a bank approval for a HELOC increase?)

Sad state of affairs for pathetic Toronturds.

1/3 are wealthy snobs, 1/3 are desperately struggling, 1/3 are drowning.

Have a listen:

“Broke In Toronto”

https://www.cbc.ca/listen/shows/metro-morning/episode/15682687

Your property market will be following your loser sports teams – right down the toilet!

#146 Sample is not representative on 03.29.19 at 8:32 am

#128 Marty Mcfly on 03.28.19 at 11:42 pm
Sorry but im not buying all these high NWs. Were in debt up to our eyeballs but every one here are multi millionaires.

***********
Reasons?
1. the typical indebted person does not read this blog
2. the typical indebted person does not post his/her NW

#147 crowdedelevatorfartz on 03.29.19 at 8:40 am

@#143 50 years of Make-believe

Yep.
At least Toronto has won a Cup.
Vancouver? Pfffft 49 years and counting…

And the sheeple keep paying the exorbitant prices to go watch hockey.
A minimum $200 per person night when you factor in the cheap seats, parking, refreshments, dinner, etc.
All to watch the perpetual losers snatch another loss from victory’s hands.
1/3 are busy looking around hoping to see or be seen.
1/3 are busy texting.
1/3 are rooting for the visiting team…

And yet the sheeple keep paying year in and year out.

Lets see how many empty seats there are next year when the real estate meltdown/recession really takes hold.
But it will be the Canucknuckleheads 50th anniversary year so the uniforms will change once again, the posters, towels, trinkets and baubles will be foisted upon the amazed rubes seeking “collectibles”.

#148 crowdedelevatorfartz on 03.29.19 at 8:55 am

@#144 Skewed examples
“1. the typical indebted person does not read this blog”

+++++

Total agreement.
They are too busy spending money or “tweeting” the latest amazing meal they’ve eaten.
Saving money and RRSP’s are just not in their vocabulary.
Impulse buying is a given.
Facts, common sense, forget it.
They will argue until they are blue in the face as to why they cant save any money…..as they bog away on $14/pack cigarettes and regale us with their boozy stories of the previous evening at the pub watching their favourite sports teams who’s members they have devoted their last remaining brain cells to know everything about.
Player stats, wins, losses, trades, all memorized ad infinitum so that when the latest sports pool comes out they have a snowballs chance in hell at collecting a few hundred bucks…

Its a shame but they dont worry, the govt will coddle them in “retirement”.
Savings? Investing?
How boooooorrrrring.
I need a new V8 gas guzzlin’ truck! Right now! Does it come in blue?
96 months at $450 month? awesome!

#149 Fortune500 on 03.29.19 at 9:07 am

Me 38, wife 35. NW $950,000. No debt. Renters. No help from mom and dad. We will be fine.

#150 dharma bum on 03.29.19 at 9:08 am

#73 Cash is King

Dougie has not even begun to sharpen his cutting tools.
——————————————————————–
Hahahahahah!

https://media0.giphy.com/media/tAWrwLXtBBvjy/giphy.gif?cid=790b76115c9e17cb562f626141232695

#151 PastThePeak on 03.29.19 at 9:11 am

#128 Marty Mcfly on 03.28.19 at 11:42 pm
Sorry but im not buying all these high NWs. Were in debt up to our eyeballs but every one here are multi millionaires.
+++++++++++++++++++++++++++++++++

Hate to break it to you Marty, but some people are better at managing their financial health than others. It isn’t rocket science, but just good planning.
– Pursue a career with good earning potential. Avoid paying for an expensive university education in general arts, or anything that ends “studies”. Go for STEM, business, medicine, and law. Or be an entrepreneur in the trades.
– Be very cautious of high debt. Might mean renting, or moving to another city, to avoid the greater than 500K+ mortgage.
– Save. Spend less than you earn.
– Invest in a balanced portfolio, using all registered room available.
– Partner up with someone that brings something to the table, and can be onboard with the above plan (they don’t have to be the same as you, or make similar money as you, but understand the “spending less than you earn part”).

All that my wife & I have we built ourselves. No inheritances of any kind, and both from lower-middle and middle class families. That said, we are very thankful and blessed to have good health (so far) for ourselves and kids.

I will confess I am a bit skeptical myself when someone in their early 30s claims to have a NW > $1M, unless getting some significant help from the BoM. A few could be dual income lawyers I suppose, but even then the earnings aren’t too high in the first decade of career.

#152 not 1st on 03.29.19 at 9:39 am

#128 Marty Mcfly on 03.28.19 at 11:42 pm
—-

Oh I have debt. Plenty of it. Its the only way to start a business from scratch. The bank wont lend anything if you want to buy equities though. They laugh at that, but RE, they will go all the way for that.

What I don’t have is any consumer debt. I never use debt to buy anything that depreciates or doesn’t positive cashflow.

But some people don’t know how to handle money or wield debt including some of the richest people on paper. Here we have a lot of doctors who overbuilt houses for the area only to find their city assessment are half of what they built for.

#153 The real Kip (Ret) on 03.29.19 at 9:49 am

Well Garth, you always say none of the idiots here listen to you but I did. I got out from under the bank just over two years ago. I have a HELOC with $0 outstanding. No mortgage. I pay the credit card in full every month and paid cash for my beautiful Dodge Caravan so you can now say there was one person that listened.

Enjoy the coming recession. It going to be a dandy!

#154 Alistair McLaughlin on 03.29.19 at 9:52 am

#78 OK “Those numbers are hard to digest. They suggest people have borrowed so much money against the future that it’ll take decades (forever, if we don’t stop borrowing) to move the needle.”
Defaults moved it down in the US. I suspect loan defaults will force banks to clean up balance sheet here too.

Right you are. The sentiment oft expressed by bank, government, and academic economists alike – that eventually incomes will rise and Canadians will “start to get serious about paying down debt” – is nonsense. Those so-called economists are either lying or embarrassingly ill-informed and ignorant of history.

Forget Ray Dalio’s “beautiful deleveraging”, where government hand-holding nurses us through a graceful process in which everyone pays down or forgives debts, while the rest is papered over by a benevolent central bank. That’s what they’ll try to do. But there is only one way a debt deleveraging happens.

It is a painful, ugly, volatile, violent process, followed by years of economic malaise and eventually, hopefully, a slow, grinding recovery. Defaults. Insolvencies. Foreclosures. Bankruptcies. Massive write-downs. Those are the mechanisms by which excessive aggregate private sector debt is reduced. Anyone stating otherwise is blowing smoke up our behinds.

Ray Dalio’s fantasy has already been tried in Japan: They skipped the painful and gut-wrenching process of a deleveraging depression, but that meant they had to forego the recovery for 20 years and counting – a recovery that could have started in earnest by 2000 or so. Even now, we still don’t know if Japan has avoided the painful depression they should have endured 1990-2000, or just delayed it for two generations. As a certain communist dictator once said, “Too soon to tell.”

#155 NotLegalAdvice on 03.29.19 at 9:54 am

#40 staying anonymous on 03.28.19 at 5:54 pm
…but post often.

42, married with 2 kids in diapers.

net worth – $1.8m+ and no house, we rent

_____________________________________

Who invested your money? you using Turner Investments?

Married – average age is 27 and net worth is $200k – no debt. No real estate. We rent.

What are we doing wrong? We need to properly invest our money, but aren’t entirely sure how to.

Garth, help??

#156 Alistair McLaughlin on 03.29.19 at 10:04 am

Oh, and since we’re having fun:

Married: 48 and 42
NW: $4.8 Trillion
RRSPs, TFSAs, real estate empire
Own several small tropical island nations (but not their debt)
Multiple despotic third world governments in my back pocket
Trump & Trudeau on speed dial
Leo Trollstoy is my b!tch. :)

#157 Remembrancer on 03.29.19 at 10:22 am

#153 NotLegalAdvice on 03.29.19 at 9:54 am

You probably want to contact Turner Investments on more paleo channels like a call or office appointment to explore your options…

AT this point in your life, even Bruce Reynolds couldn’t get you caught up to Anonymous tomorrow. A 15 year head start, not to mention, what are your current careers, expected earning etc? Regardless, set goals, come up with a plan and stay the course by keeping to not spending every loonie you take home and maybe you’ll get there too…

#158 PastThePeak on 03.29.19 at 10:32 am

#153 NotLegalAdvice on 03.29.19 at 9:54 am
#40 staying anonymous on 03.28.19 at 5:54 pm
…but post often.

42, married with 2 kids in diapers.
net worth – $1.8m+ and no house, we rent
_____________________________________

Who invested your money? you using Turner Investments?

Married – average age is 27 and net worth is $200k – no debt. No real estate. We rent.

What are we doing wrong? We need to properly invest our money, but aren’t entirely sure how to.

Garth, help??
++++++++++++++++++++++++++++++++++

I hope you are joking. You are doing NOTHING wrong. At 27 you and spouse have $200K – that is great!. Far more than I had at same age.

The difference is *TIME*. Properly invested, your assets grow exponentially. Do yourself a favour. Plot out the growth of $200K (without putting any additional money in), with an average growth of 5% (conservative) a year. It grows slowly in total $ at first, but then after 20 years you will see what I mean. Now think how that grows with you adding each year, and hopefully growing your income as you advance career.

This is what millennials are often criticized for – wanting what their parents have – but RIGHT NOW!!!. You are starting out great – keep it up – but don’t worry what people 15-20 years older have.

#159 PastThePeak on 03.29.19 at 10:36 am

#11 Bob Dog on 03.28.19 at 5:02 pm
Please edit and change “we borrow” to “they lend”. Canadians paid bank CEOs over 60 million$ last year to run the countries finance system in a responsible manner. If too much debt is out there, it is the fault of the lender not the borrower.

The average Canadian should not be required to be an expert in finance any more than they should be able to write an algorithm to traverse a directed graph to find the shortest path between two nodes.

Canada is under attack by financial terrorists. Your government knows this. Your government is encouraging it. Your government is a corrupt puppet regime receiving orders form these financial arch criminals.

Please try to be more accurate when assigning blame for the economic disaster we are experiencing.
++++++++++++++++++++++++++++++++++++

If you truly believe this, and their are many others like you, then it goes a long way to explaining what is wrong with this country…

#160 NotLegalAdvice on 03.29.19 at 10:53 am

#155 Remembrancer on 03.29.19 at 10:22 am
#153 NotLegalAdvice on 03.29.19 at 9:54 am

You probably want to contact Turner Investments on more paleo channels like a call or office appointment to explore your options…

AT this point in your life, even Bruce Reynolds couldn’t get you caught up to Anonymous tomorrow. A 15 year head start, not to mention, what are your current careers, expected earning etc? Regardless, set goals, come up with a plan and stay the course by keeping to not spending every loonie you take home and maybe you’ll get there too…

______________

Thanks, sounds like good advice.

Household income is $150k. In the next 3 years it’ll be closer to $165,000.

#161 lisa on 03.29.19 at 10:57 am

46SWF – NW about $65,000. Debt under 2 grand. Renter. DB pension. Currently chugging along in an 8 year old Ford. Not great but hopefully not horrible. Biggest mistake: RRSP all in mutual funds. Your advise has helped, Garth. thanks!

———————————–
A red head says to her blonde friend, ‘I slept with a Brazilian.’ the blonde replies, ‘you $lut! How many is a Brazilian??

#162 gfd on 03.29.19 at 10:58 am

NEWS FLASH: Unverified document indicates Philpott and “Jody’ colluded with the Russians.

#163 Kevin on 03.29.19 at 10:58 am

Rule of 90 link for anyone who needs a refresher:
https://www.greaterfool.ca/2015/03/20/rule-of-90/

#164 David Prokop on 03.29.19 at 11:01 am

Garth, congratulations, your blog must be attracting the gravy of all 1%-ers, so many debt free, multi millionaires. I’m reading this and I find it hard to believe that one out of four Canadians is only one paycheck away from being insolvent. Who’s holding all those trillions of debt?

#165 Remembrancer on 03.29.19 at 11:19 am

#149 PastThePeak on 03.29.19 at 9:11 am

Great summary on how to get a little bit there or at least well on your way to a portion, (with a bit of timing and luck too of course) if your last name isn’t Thomson, Weston, Rogers, Saputo, Irving, McCain, Katz, etc…

#166 Remembrancer on 03.29.19 at 11:23 am

#151 The real Kip (Ret) on 03.29.19 at 9:49 am
I have a HELOC with $0 outstanding. No mortgage.
———————
Last thing to do is burn your ships on the beach and cancel the HELOC…

#167 Home loan question? on 03.29.19 at 11:41 am

Hope to get an answer from the all the knowledgeable folks out here

If the house price drops and your equity goes negative, can the bank as you to pay the min 5% equity as required by CMHC insurance?

#168 NotLegalAdvice on 03.29.19 at 11:49 am

#161 lisa on 03.29.19 at 10:57 am
46SWF – NW about $65,000. Debt under 2 grand. Renter. DB pension. Currently chugging along in an 8 year old Ford. Not great but hopefully not horrible. Biggest mistake: RRSP all in mutual funds. Your advise has helped, Garth. thanks!

_____________________________

Is it possible to invest RRSP’s in ETFS?

#169 regular MB guy on 03.29.19 at 11:51 am

No consumer debt. Mortgage is $28,000 and will be paid in less than a year. NW = $440,000. I’m not ready.

Partner works for federal government. No consumer debt. NW = $360,000. She’s not ready.

#170 Howard on 03.29.19 at 12:02 pm

In case you haven’t seen this yet.

CPC 40%
Lib 30%
NDP 21%

Trudeau lower approval than Trump.

https://globalnews.ca/news/5103763/trudeau-approval-rating-snc-lavalin-budget/

#171 not 1st on 03.29.19 at 12:09 pm

Citi global economists and strategists have come out and actually predicted what investors have been concerned about for the past six months, a global recession (my emphasis).

“From goldilocks, via a brief reflation, we are heading to stagnation and then, probably, recession. European and Asian weakness is consensus. But US lead indicators suggest more downside delta to come in the US. Citi curve models put the probability of a US recession in a year at 37% but have never reached more than 50% even when recessions occur. So that’s 75% adjusted. As, and if, the curve inverts more, probabilities rise exponentially anyway. Hence we think the risks around Citi economic forecasts are solidly to the downside, and advise investors to prepare for recession.”

Recessions (contractions) are normal. Things do not go up forever. Ignore them. – Garth

#172 NoName on 03.29.19 at 12:15 pm

Funny this. Bear market of different kind.

Forget what experts say and take a look at 3rd chart, looks like that womans are lot more pickier now than in pre-instagram days…

It would be interesting to see who gets laid more fake lumberjack barista type or roughnecks…

https://www.washingtonpost.com/amphtml/business/2019/03/29/share-americans-not-having-sex-has-reached-record-high/

#173 SoggyShorts on 03.29.19 at 12:22 pm

#109 cowtown cowboy on 03.28.19 at 9:46 pm
Married, each 50
Assets: $1.150M or so
Liabilities: $380k, mainly mortgage and $50k in tax deductible LOC
Net Worth: ~ $770k

Finally got the wife back to work and currently pushing $300k/yr, trying to save ~ 50-60k/yr so that my retirement isn’t living in a trailer park in Black Diamond..
***************************************
What is with that savings rate? Any couple earning 300K outside the LM/GTA should be able to save half.

20K rent/mortgage
20K food/entertainment
10K stuff
100k tax
150k savings
—-
300k

So if you are”trying to save 50K” where is the other 100K going? There’s more money missing from the above calculation than most families make!

My wife and I make significantly less than you and have double the savings rate despite lavish vacations multiple times each year.

#174 PastThePeak on 03.29.19 at 12:24 pm

#168 NotLegalAdvice on 03.29.19 at 11:49 am

Is it possible to invest RRSP’s in ETFS?
++++++++++++++++++++++++++++++++++

Sure. You need to open a self-directed RRSP in an investment account (all banks have such investment sides). Then you buy the ETFs on the different exchanges (Canadian, US). Just like buying a stock, but it is an ETF (have their own stock symbol).

#175 IHCTD9 on 03.29.19 at 12:28 pm

It’s pretty amazing to see how well some of these younger folks are doing financially here on the GF. Probably only a fraction of 1% of Canadians have a NW of anything worth mentioning at 30 years old.

If Ms. IH and I can nail down a 7 figure portfolio by 65, I’ll be dancing in the ******* streets! All you kids in your 20’s with 100’s of thousands worth of cash already saved up – keep doing whatever you are doing now, you’re going to be very happy come retirement!

#176 IHCTD9 on 03.29.19 at 12:56 pm

#172 NoName on 03.29.19 at 12:15 pm
Funny this. Bear market of different kind.

Forget what experts say and take a look at 3rd chart, looks like that womans are lot more pickier now than in pre-instagram days…

It would be interesting to see who gets laid more fake lumberjack barista type or roughnecks…

https://www.washingtonpost.com/amphtml/business/2019/03/29/share-americans-not-having-sex-has-reached-record-high/
____

The MGTOW’s are multiplying!!!

There is so much crazy stuff going on out there on the demographics front.

I have to think that prostitution is going to be big in the future. Young Men these days put more time and effort into school, careers, travelling, and hobbies than ever before. Testosterone levels in Western Men are way down and dropping, and OLD apps have banished all but the top 20% of eligible Men to the curb.

The current situation for the average guy is an uphill battle for virtually zero chance of a relationship. Women have changed too, hypergamy is more noticeable today as Women rise to higher positions in society. Men are sinking in society, and as they do, they also lose much of their ability to attract a mate.

I can’t see the average dude gleefully running headlong into a system where they have almost no chance. Seems a lot less stressful to just make a phone call when the mood strikes…

IMHO, Western society has got big, BIG problems coming down the pipe.

#177 Danforth on 03.29.19 at 1:07 pm

House 850k, mortgage free
Investments, 715k
No debts other than a car payment.
Total: 1,565,000

47, Unmarried male, no kids.

#178 n1tro on 03.29.19 at 1:14 pm

I feel so poor.

$150K net worth

I guess this is the consequence of all that debauchery in my 30s.
Wouldn’t change a thing though. Life is for living.

Make the Canadian family average by myself after taking a $30K paycut to be closer to home. Prepping for my second act to fund more debauchery in my 50s and beyond.

#179 Gordon on 03.29.19 at 1:16 pm

DELETED
(You are White Power trash. Go away. – Garth)

#180 staying anonymous on 03.29.19 at 1:18 pm

#155 – Good income and luck, really… bought a home in 2005 and sold for more than double in 2012. split the $$$ between a commercial property and investments.

commercial property has doubled in value (conservatively) and all investments are $600k

$200k at 27 is amazing – well done! I just finished paying student loans by then.

Again, I rode the wave of RE growth and made a couple good decisions, so Warren Buffett I am not

#181 Claire on 03.29.19 at 1:23 pm

Sad when the only place debt-free renters can brag about their net worth is anonymously on the internet. Far more socially acceptable to complain about bills and debt.

#182 Legal beagle on 03.29.19 at 1:42 pm

While there seem to be a number of young (20-30 year old) millionaires on this blog I’ll throw out my families “stats”.For context, my better half and I just turned 30 and we have a one year old. We are both old school professionals (read: lawyer & Dr) who have been out of school for ~3 years. Neither of us had any of our schooling or large sums of money “gifted” to us from our parents.

Household income last year PRE-TAX was ~$170,000 on account of giving birth and only seeing patients 2 days a week for most of the year. The rest of her time she spends at home with our toddler.

We rent and live, what we consider, a pretty comfortable middle class life with all the spending that entails.

Our “NW” is roughly -$20,000 broken down as follows:

Remaining student Loans from our professional schools and undergrads: -$160,000 (prime +0% interest rate)

Investments in balanced and diversified portfolios (all in TFSAs & RRSPs): +$135,000

Floating cash reserve we keep on hand between +$5000-$10,000 a month after all expenses are paid.

(We also have a paid for car but I wouldn’t include that as an “asset”.)

One question I’ve often considered (and perhaps one Garth or other blog dogs might opine on) is whether we should we raid our TSFA’s (which we’ve earmarked for retirement along with our RRSP’s) to pay down our debt faster (almost immediately) right now and start saving again from nil?

#183 jess on 03.29.19 at 1:55 pm

tax avoidance industry tax havens and nondoms
The Super-Rich and Us – Ep. 1
The Super-Rich and Us

Jacques Peretti looks at how the super-rich exploited a legal loophole to make Britain one of the most attractive tax havens on the planet. He meets the super-rich themselves – from those buying football clubs to the billionaires breaking ranks to criticize the decisions that made them richer and society more unequal. He challenges the architects of these policies, and tracks down the foreign multimillionaires who are turning Britain from a nation of property owners to a nation of renters.

#184 jess on 03.29.19 at 2:00 pm

Why is she still a senator?

Senator Lynn Beyak, in a still from a video on March 27, 2017. Beyak has refused to remove letters posted to her website that have been condemned by politicians of all stripes as racist and hateful. (CBC)

More than a week after the Senate Ethics Officer ordered Non-affiliated Ontario Sen. Lynn Beyak to take down letters posted to her website that have been condemned by politicians of all stripes as racist and hateful, the correspondence is still featured prominently on her taxpayer-funded page.

Ontario senator describes letters calling Indigenous peoples lazy whiners as ‘edgy and opinionated’

#185 jess on 03.29.19 at 2:02 pm

Swedbank’s former chief executive, Birgitte Bonnesen. Photograph: Janerik Henriksson/AFP/Getty Images

Swedbank has sacked its chief executive amid a growing money laundering scandal, which the Swedish lender said has heaped “enormous pressure” on its operations.

The lender announced Birgitte Bonnesen’s dismissal shortly before it was due to hold its annual general meeting in Stockholm on Thursday, and comes after reports by Sweden’s state broadcaster threw the lender’s conduct into the spotlight.

Bonnesen is the second Nordic banking boss to be ousted in recent months amid money laundering allegations. Thomas Borgen resigned from Denmark’s largest lender, Danske Bank, last autumn. In September Danske admitted that about €200bn (£178bn) of cash flowing through its Estonian branch was money laundered from countries including Russia, the UK and British Virgin Islands.(the guardian)

#186 expat on 03.29.19 at 2:03 pm

Nobody is stupid enough to put their numbers on this board. I call BS.
You are probably living in your momma’s basement.
Get real.

#187 expat on 03.29.19 at 2:07 pm

BTW my banker says they see the data on their clients.
99% are broke or at least underwater if you are younger than 50.
If you sold your house in Gta or van I get it.
So grow up or at least wake up

The banks have hedges on their clients debts from what I understand.
So unless you own an RBC black card again I call BS

#188 jess on 03.29.19 at 2:12 pm

promoters- highly contrived tax avoidance loan schemes.

11 Bob Dog on 03.28.19 at 5:02 pm

https://www.gov.uk/government/news/hmrc-wins-40-million-battle-against-tax-avoidance-promoters

Hyrax Resourcing Limited accepted applications from users, created employment contracts, signed service contracts, paid employees and transferred loan agreements to offshore trusts. Scheme users paid Hyrax 18% promoter fees to allow them to access the scheme.

The Hyrax scheme operated as follows:

UK earners quit their job
they sign a new contract with a UK trust
the UK trustees ‘rehire’ their new employee to their previous employers or previous customers but take their earnings and their 18% fee
from the remaining 82% the trustees pay the employee just enough salary each month to comply with National Minimum Wage rules and the rest is paid in the form of ‘loans’
the trustee transfers its rights to be repaid the loan to an offshore trust in Jersey – with the intention that the loans are never repaid
the amounts loaned are not included on the employees tax returns in an attempt to avoid paying Income Tax and National Insurance

#189 Alistair McLaughlin on 03.29.19 at 2:31 pm

@#181 Claire, it was never socially acceptable to brag about one’s net worth. It has, unfortunately, become acceptable to brag about how much one’s house and investment properties have gone up in value. That’s a shame. Also a shame that people feel they need to advertise their NW publicly, even anonymously. Class, discretion, and dare I say it – humility – might be out of style in the Instagram world, but are still worth practicing.

#190 Yukon Elvis on 03.29.19 at 2:33 pm

#178 n1tro on 03.29.19 at 1:14 pm
I feel so poor.

$150K net worth

I guess this is the consequence of all that debauchery in my 30s.
Wouldn’t change a thing though. Life is for living.

Make the Canadian family average by myself after taking a $30K paycut to be closer to home. Prepping for my second act to fund more debauchery in my 50s and beyond.
……………………………

Pretty much the same here. Could have made more money but preferred the fun and debauchery. Still going strong at 70 y.o. I’ve had more fun in one weekend than most of my friends have had in their entire lives. Release the hounds !

#191 SoggyShorts on 03.29.19 at 2:40 pm

#182 Legal beagle on 03.29.19 at 1:42 pm
One question I’ve often considered (and perhaps one Garth or other blog dogs might opine on) is whether we should we raid our TSFA’s (which we’ve earmarked for retirement along with our RRSP’s) to pay down our debt faster (almost immediately) right now and start saving again from nil?
**********************************
Are your TFSA investments earning more than 3.95%?
They should be, and that means no, you shouldn’t use them to pay back that loan faster.

#192 Remembrancer on 03.29.19 at 2:41 pm

#182 Legal beagle on 03.29.19 at 1:42 pm
Investments in balanced and diversified portfolios (all in TFSAs & RRSPs): +$135,000
—————————————————-
You didn’t mention how much is in RRSP and in TFSA – that’s a factor as anything coming out of the RRSP is taxed as income so you always need to consider that…

If the TFSA is making more (dividends, capital appreciation etc) than you’re paying in interest then keep the TFSA as-is IMHO. You also need more of a cushion then your $5K to $10K for big emergencies like an older car packing it in that you need to consider, otherwise you’re looking at credit card debt as an alternative.

You’ll likely be seeing new expenses as well for things like child care to consider; the part of your income you’re not using for (reasonable) housing, to pay debt or to fund savings is going to lifestyle – that includes eating out whether you actually go out or not. Look at things like monthly fees, “extras” or indulgences which are not periodic but every day etc etc. Question these and be spending consciously at least, not unconsciously. You’re both in professions which are notorious for taking care of others but never yourself and having all kinds of easy to cover monthly payments and time savers which each on their own are innocent enough, but in aggregate can be back breaking or at least diverting income from what you really care about without even noticing…

While a psychological feel good retiring that loan, its the kind of low interest “good debt” (unlike say a new leased Audi or 2 weeks in Australia financed on the ol CC) that if you can service it comfortably and make more investing at the same time then its worth doing that, again IMHO… You didn’t say what the payment terms were, but every month it’ll be one month less…

Good luck – asking the question is an important step itself…

#193 Cyberscrewed on 03.29.19 at 2:49 pm

The replies are making me laugh…sounds like still a lot wealth out there. Don’t worry folks you’ll live when it comes down.

47 – Bankrupt – No Nothing – Living on a boat – Now making a forth of what I use to make. Separated from wife 50 who is also out of work and daughter whom both have sever depression their whole life’s and now with an eating disorder.

We manage.

BUT for those who can be saved listen to Garth. Be smart.

#194 jess on 03.29.19 at 3:05 pm

have a look at this DPA -deferred prosecution

Fresenius admitted to earning more than $140 million in profits from the corrupt schemes.

In Saudi Arabia, Fresenius offered or provided things of value to Saudi Arabian health officials and publicly employed doctors who directed or were employed by a Saudi medical organization and a governmental charity. Specifically, Fresenius engaged in a check-cashing scheme where employees were directed to cash checks that had been made payable in their names and return the cash to the general manager of Fresenius’s distributor and agent where he [the agent] then arranged to have the cash delivered to Saudi government doctors and others. In addition, publicly employed doctors were awarded sham consulting and commission agreements for which no services were ever performed. Fresenius also entered into fake collection commission agreements, made payments to a government charity, and gave gifts and made payments to publicly employed doctors for travel with no business or educational justification, the company admitted.

In Morocco, Fresenius paid bribes through a sham commission to a Moroccan state official for the purpose of obtaining contracts to develop kidney dialysis centers at Moroccan state-owned military hospitals.

In Angola, Fresenius offered or provided things of value to an Angolan military health officer who exercised authority over the Angolan state-owned military hospital in his role as an officer in the Medical Services Division of the Angolan Armed Forces and his family, as well as prominent Angolan government-employed nephrologists.

The Department reached this resolution based on a number of factors. Notably, although Fresenius voluntarily self-disclosed the misconduct in April 2012, the company did not timely respond to certain requests by the Department and, at times, did not provide fulsome responses to requests for information. In addition, misconduct occurred in 13 countries, yielded profits of more than $140 million and continued in certain countries until 2016. Moreover, the company has not yet had the opportunity to test the effectiveness of its compliance enhancements. In light of all the factors, the company did not qualify for a declination under the Corporate Enforcement Policy; however, the company was afforded a reduction of 40 percent below the low end of the U.S. Sentencing Guidelines fine range. As part of the resolution, the company agreed to an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the Department.

Fresenius settled a related FCPA matter with the U.S. Securities and Exchange Commission (SEC) today, and will pay $147 million in disgorgement and prejudgment interest to the SEC, which the Department credited in its resolution, bringing the total amount paid by Fresenius to over $231 million.

#195 Drinkdivedance on 03.30.19 at 12:20 am

#115

Only 5k in divs on 4m? Why so low? Even the most basic investments should average more than a pathetic 1.5% yield…

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

Only 1 mil of that is in fixed income. 2 mil in growth stocks of former startups that ipo’d and 1 mil in voting shares of private corps where I am a major stock holder. These are valued at face value of the issuing price.

After the housing and commodity collapse, I managed to see that tech will benefit from both lower material cost and better workforce able to move to the city. That is the majority of my ner worth build. Of course, uf the recession were to hit and these corps go under, I’d back at 1 mil only. But it should be fine, I’ve steered them away from debt fir the past 3 years, now it’s a matter of hiw bad the recession will be.

To be honest, I work so much that I find it hard to spend all 5k a month. If I need morr I will put more into the fixed income portion.

#196 Gordon on 03.30.19 at 2:54 am

BANNED

#197 David Driven on 03.30.19 at 7:02 am

BANNED

#198 Dissident on 03.30.19 at 9:54 am

Just realized Lyft IPO’d this Friday.

Going to keep my eyes on this one. I notice that most fresh-out-of-the-gate stocks either sink or swim within the first 1 to 1.5 years of being on the exchange. (See Linkedin, SnapChat, versus Facebook, PayPal)

There’s the initial foaming-at-the-mouth excitement, followed by a prompt and sober decline to the floor of reality, and then suddenly, it wakes up and starts climbing a year or so later, if it’s any good and has actual cash flow.

I wonder if Lyft will follow the same pattern, or if it will rally sooner, just because it’s considered a unicorn.

https://www.marketwatch.com/story/lyft-stock-pops-on-first-day-of-trading-2019-03-29?mod=mw_theo_homepage

#199 JMC on 03.30.19 at 8:09 pm

46 y/o with 1 child; 2 dogs
650+K – investments/cash
Approx 500k – House value (mortgage free for 7 years)
0 – consumer debt

I feel like I’m doing better than the average Canadian considering I never even received a dime from my parents, won the lottery or robbed a bank.