Mistakes

When Al died he left his wife of 49 years a paid-for bungalow worth about $450,000 and a drawer in his desk, in the rec room, marked ‘PRIVATE.” In it Grace found a Canada Savings Bond worth $50,000.

And that was it. Al trusted nobody. He had no pension, but never invested. No RRSP. No tax-free account. No corporate pension, since he was in sales. His wife was shocked.

Investing is hard and most people suck at it. No wonder. Nobody teaches this stuff. If you go to the bank or credit union you’ll likely end up being sold some high-fee mutual funds. When clients catch on, they become skeptical about the whole financial business. Better to invest in bricks, they say, or something safe. They end up like Grace, with 20 years of life left and ten years’ worth of assets.

Others equate investing with stocks, buying shares on spec, some crazy blog’s advice or the hot tip of a relative. After the inevitable losses, they retreat, burned. Few people ever achieve financial security by flipping equities or loading up on gold coins and silver bars. Meanwhile millions of Canadians adopt a one-asset strategy, leveraging real estate to buy more real estate, oblivious to the risk, the tax implications or the lousy ROI.

So instead of GICs, bullion, condos or junior uranium company shares, most people would be better with a boring, middle-of-the-road portfolio of ETFs. Exchange-traded funds. Cheap to own. Built-in diversification. Negotiable and liquid. These funds provide exposure to an array of asset classes, like stocks, bonds or real estate trusts. Once folks become aware of that, the big question is how to weight this stuff within a portfolio.

There should be two objectives. (a) Don’t lose money and (b) get enough growth to achieve your goal. For most people that’s retirement – whether at age 40 or 65 – financial security for the rest of your life. In order to do this you have to quell volatility, mitigating the eternal ups-and-downs of the market which radically affect returns and toy with emotions. Without some way to defeat that you’ll always be tempted to crave assets going up in value and dump them in fear when they fall.

One solution that’s worked for decades is a 60-40 portfolio. Sixty per cent in growth assets and the rest in safe stuff. The equity exposure delivers capital gains and the fixed income pays you to own it. Traditionally when stocks go up, bonds are out of favour and pay little. But when equity markets correct, money flows into the safe stuff, plumping its value. The overriding goal is to build wealth over time without being on a nutso roller-coaster that messes with your head. Over the last half-century this has also performed well, handing investors an average of about 7%.

What can do wrong? Lots, of course. But here are seven of the biggest mistakes people make even with a 60/40 goal.

They think all assets should go up all the time.
Nope. In a balanced and diversified portfolio with several different asset classes that’s impossible. Your portfolio is like a 12-cylinder engine. Some rise, some fall, then they reverse – but you keep moving ahead. Ensure the weightings among the assets are correct, then forget about them until it’s time to rebalance.

They don’t understand the role of bonds.
If doesn’t matter if bonds pay you peanuts since the primary role is to make the portfolio less volatile and also mitigate equity market plops. Augment a small pile of government bonds with higher-paying corporates and provincials.

They buy preferred shares for the wrong reasons.
Preferred shares are stock-bond hybrids currently paying a dividend of almost 5% with less volatility than common stock and delivering a tax advantage. You do not buy them for capital gains, and shouldn’t care much if the capital value declines for a while. Vastly superior to GICs and should form almost half your fixed income component.

They sell losers and buy winners.
Big mistake. Don’t chase returns. Don’t turn paper losses into real ones. Set the portfolio weightings and stick to them.

They fail to rebalance.
Once a year, at least, bring things back into line. Distortions happen when you add or subtract money, when cash builds up from interest and dividends, when equity markets evolve or economic conditions change. Sell winners and buy losers to restore weightings. Most people are utterly incapable of this, so have a few single malts first.

They try to time the market.
You have no idea what’s coming in six months, so why would you ease into a portfolio by dollar-cost averaging? It doesn’t work. When you have money, invest it. The longer you’re invested, the better the outcome. By trying to miss bad days you risk missing the good ones – which are much more numerous. The impact on results can be huge.

They lose patience and go for the kill.
Gold bugs. Crypto crazies. Hot stock pickers. Investors in a hurry looking for outsized returns, thinking they’re the smartest guys in the room usually crash and burn. This is gambling, not investing. Pure speculation. The odds of failure are far higher than those of success. And, no, you’re not special.

Remember that human nature’s the enemy. Emotions will cost you dearly. Man up.

99 comments ↓

#1 crowdedelevatorfartz on 06.20.19 at 3:53 pm

Truer words, never spoken.

#2 Flop... on 06.20.19 at 3:54 pm

Mistakes?

Yeah, I’ve made a few.

Joining this blog probably not one of them.

Will probably keep contributing until I run out of things to say and am forced to tell the story about deciding to go and buy a pair of shoes over the chance to meet Mick Jagger…

M45BC

#3 Just Ed on 06.20.19 at 4:02 pm

Regarding preferred shares, does it make sense to have them in your TFSA or should you wait until you have a non-reg account before including them in a portfolio?

#4 Brett in Calgary on 06.20.19 at 4:03 pm

That was one of your best Garth – really.

#5 Jager on 06.20.19 at 4:05 pm

— Anthropogenic (Global Warming) Climate Change —

Carbon dioxide represents approximately 0.04 percent of the earths atmospheric gas by volume (continuously fluxing in/out).

It’s understood (UN/IPCC – Intergovernmental Panel on Climate Change) that nature produces 97% of this CO2 and 3% is considered anthropogenic in origin.

e.g. 100 cubic ft of air holds
approximately 0.04 cubic ft of CO2 of which 0.0012 cubic ft (3%) is considered anthropogenic in origin.

It is postulated (Ministry of Truth) that this additional CO2 is cause for the greatest ecological crises in modern history! The manifestation of which is (never ending) financial penalty and increased societal angst.

Yes. Climate change is real (and not always beneficent to life). A perpetual phenomenon since the earth’s atmosphere first began to form over 4 billion years ago.

http://www.ecology.com/2011/09/10/earths-beginnings-origins-life/

(Viewer discretion – strong language)
https://youtu.be/BA1ia70-oj8

#6 mj on 06.20.19 at 4:26 pm

hey Garth, just curious. You say the average return is between 6-7%. What was the best year % you brought to your clients

#7 Toronto_CA on 06.20.19 at 4:37 pm

“Preferred shares are stock-bond hybrids currently paying a dividend of almost 5% with less volatility than common stock and delivering a tax advantage. ”

The volatility is off the charts in the last year with prefs though.

#8 Arctic Gringo: Qalunaaq on 06.20.19 at 4:41 pm

A. Scheer spotting in Iqaluit. He gets it…it’s rude to point. That, or no one to return his fist-pound offering.

https://nunatsiaq.com/

#9 NYCer on 06.20.19 at 4:42 pm

I know that this is not the point of post today but the fact that Grace was shocked with how much her late husband had is a concern.

Couples should be sharing their financials and plan together and re-evaluate the reconnect on a regular basis; ensuring success to the couple.

Anyways, I like the balanced approach :)

#10 dakkie on 06.20.19 at 4:44 pm

The Most Splendid Housing Bubbles in Canada, May Update

https://www.investmentwatchblog.com/the-most-splendid-housing-bubbles-in-canada-may-update/

#11 Juve101 on 06.20.19 at 4:49 pm

The voice of reason. I’m going to print this for my kids.

#12 Midas on 06.20.19 at 4:58 pm

Average yearly increase in gold price in GBP last 18 years 11.1%
CDN 8.5%
Before yesterday’s breakout.
Hardly silly.

#13 Howard on 06.20.19 at 5:00 pm

The Liberals just did ANOTHER thing to win my gratitude and admiration. I’m actually shocked that they had the gumption to do this. This gruesome trade is now a thing of the past.

Canada becomes first country to pass comprehensive ban on shark-fin imports and exports

https://business.financialpost.com/news/economy/canada-becomes-first-country-to-pass-comprehensive-ban-on-shark-fin-imports-and-exports

#14 Kilt on 06.20.19 at 5:06 pm

Bonds pay peanuts and I wouldn’t lend a dime to some of the companies, provinces, cities or countries that are selling the bonds. Lots of other options to smooth out volatility, with less risk and better returns.

Kilt.

#15 Edmonton Dave. on 06.20.19 at 5:09 pm

Another superb blog post Mr. Turner,
I’ll bet that your faithful readers would love a deeper understanding and look at rebalancing. That’s my weak spot and I admit to it.
I always learn something everyday, thank you.

#16 jess on 06.20.19 at 5:14 pm

September 15, 2018, 1:27 PM
https://www.cbsnews.com/news/darpa-helped-create-the-internet-heres-what-theyre-working-on-now/

LINDSEY GRAHAM: “Here’s what Iran needs to get ready for — severe pain inside their country … if they’re itching for a fight, they’re going to get one.”

the new arms race hypersonic missles
A Mach 6 missile would travel at more than a mile a second, or 76 miles a second. That would give many long-range air defense systems just three minutes or less to detect, track, and shoot down a target. Many existing air defense missiles, designed to shoot aircraft and cruise missiles, are likely unable to intercept hypersonic weapons.

https://www.popularmechanics.com/military/research/a28071732/hypersonic-missile-design/

#17 Dog Breath on 06.20.19 at 5:16 pm

Well today does it. My gold holdings have doubled in value. Of course I would have to pay capital gains tax if I sell unlike my house that has tripled in value, which can be sold tax free. Two of the best investments I’ve ever made. So much better than piddling returns stocks have given me after taxes!

#18 Nope on 06.20.19 at 5:20 pm

You have no idea what’s coming in six months, so why would you ease into a portfolio by dollar-cost averaging?

……….

you help to curtail a horrific entry, like Aug 2008. It’s because exactly the your first sentence that you do, :)…….Everyone was Deer in the Headlights Aug 2008 , remember? it took a 60/40 portfolio nearly two years to get back to even– TWO YEARS

investing 101.

#19 jess on 06.20.19 at 5:22 pm

that muscle motion translates to the please take me home look

https://www.newscientist.com/article/2206696-dogs-evolved-a-special-muscle-that-lets-them-make-puppy-dog-eyes/

#20 paracho on 06.20.19 at 5:23 pm

Not to sound like a suck up ( not looking for anything ).
But this was great advice !
Thanks again Garth !

#21 SimplyPut7 on 06.20.19 at 5:26 pm

Mistake: Thinking your bank cares that you bought an investment condo years ago and need to close on the property using the wild west mortgage rules from 2016.

https://www.cbc.ca/news/canada/british-columbia/pre-sale-condo-buyers-back-out-of-contracts-as-market-slows-in-lower-mainland-1.5181676

#22 RW_Z on 06.20.19 at 5:29 pm

“His wife was shocked” – What’s so shocking and horrible about being left half a million worth of assets? Yeah, some people have more, but it sounds pretty damn reasonable.

“You shouldn’t care much if the capital value [or preferred shares] declines for a while” – For a while? CPD has inexorably and monotonically declined since its inception 12 years ago, by 40% cumulatively, through both the rate drops and the hikes. Why exactly is this going to reverse?

#23 Gulf Breeze on 06.20.19 at 5:33 pm

I bought gold miners as a hedge against inflation and instability. I have a lot of cash in the bank in brain dead GIC’s. This is where everybody should be right now, be they young or old. You do NOT buy into a storm. You sell.

My gold miners are up 10% this week. And sure they may drop back down, but in that case, it will mean that my brain dead GIC’s are worth more in purchasing power.

Dividend junkies are going to get truly clobbered in the next phase of this cycle.

And your constant refrain that gold has dropped 600.00 from the peak is tiresome and evasive. Currently it is down about 60.00 in Canadian funds from its temporary spike in 2011.

Can we agree to quit nominating it in U.S dollars, unless you do the same for Canadian bank shares and dividends?

It’s getting old.

#24 Ardy on 06.20.19 at 5:33 pm

Garth,

Humour my ignorance and please don’t see my naive thinking as a challenge…just a quest for knowledge.

In your summaries for both They sell losers and buy winners. & They fail to rebalance., aren’t selling your winners and then buying them back when they inevitably become losers have the detrimental effect of crystallizing losses. This becomes more apparent, I would argue, when no new money is added when rebalancing.

If I understand the concept correctly, this would accelerate portfolio decline, a definite concern in retirement, if the networth whenever the rebalance is done is lower and no money was drawn from the portfolio.

Thoughts?

-RD

#25 The Economist on 06.20.19 at 5:37 pm

Let’s round off to $500,000 inherited and 50 years of marriage.

This is $500,000/50=$10,000 yearly which could be used to “diversify” like a wealthy Saudi dictator living next to Morneau’s French mansion.

#26 Jay Currie on 06.20.19 at 5:53 pm

Excellent advice, Garth.

Amusingly, my 15 and 18 year old sons have full time jobs and are looking at actually saving money in decent quantities. I will be forwarding this column to them. Sadly, they are too young to be allowed a TFSA but they are not making enough money for tax to be an issue.

My sense is that a starter portfolio of a Canadian Index ETF, a US Index ETF and a Bank Pref ETF might work for each of them. But suggestions are always welcome.

Overall, each will have about $5000 to deploy at the end of the summer and then each will be able to put in a couple of hundred a month thereafter. They are also in line for a bit of inherited money in the next few years so it would be good to have a regular saving/investing routine.

#27 Linda on 06.20.19 at 5:55 pm

While it seems like a no-brainer these days to invest in ETF’s, keep in mind that this type of investing was not available to the public prior to 1993 when the first fund was successfully brought to market in the USA. It has taken time for their popularity to grow, despite the low fee advantage. These days ETF’s are the belle of the market ball but investors still need to do their due diligence.

As for investing, dollar cost averaging is better than not investing at all. Many people find it easier to commit a smaller weekly or monthly sum to a new venture than to bet the whole wad in one go. Many people don’t have a wad to bet in the first place. I think of the dollar cost averaging as a marketing tool that persuades people to start investing.

Grace does have the paid for house. Would she not be able to sell, invest the proceeds & live off the income for the remainder of her life? She should at least get survivor’s CPP benefits & presumably is old enough for OAS, plus has $50,000 in cash to cover her expenses in the interim. It may not be a huge amount of income, but it is at least better than living off just CPP/OAS/GIS.

#28 Ronaldo on 06.20.19 at 6:29 pm

Mistakes, oh yes, made a few of them along the way for sure. Some more embarrasing than others but all part of living and learning. Hopefully not many in the final few years.

#29 Jack on 06.20.19 at 6:32 pm

That’s a very useful article. I always thought that re-balancing means selling the losers and buy the winning equities, seems I was wrong.

#30 Bitcoin on 06.20.19 at 6:54 pm

$9400

Anybody know when we get to zero ? :)
Congrats to all that bought earlier in the year

#31 Andrewski on 06.20.19 at 7:05 pm

Slow & steady wins the race. I had a brief conversation with a 20something today, who sheepishly admitted he “took a bath” on a bitcoin investment he made last year. Refreshing to hear him admit he got caught up in the hype & invested what little money he had on something he had no understanding of.

#32 Drew on 06.20.19 at 7:06 pm

What is your opinion on those all in 1 ETFs like XBAL, VBAL, and ZBAL?

#33 Long-Time Lurker on 06.20.19 at 7:08 pm

#55 Millenial CTO on 06.19.19 at 9:43 pm
In reply to #38

>Your “researcher” should do more research before making his hypothesis. (Complete article follows)
__________________________________

That article from 2 years ago doesn’t really refute the article I linked in any way. Did you read it? You need to cut paste the link because this comment thread cuts the hyperlink mid-way.

(>That was your own link above which didn’t work. I had to cut out everything after .pdf on the address to read the paper.)

>I skimmed through it. I have better things to do with my time. What I noticed is that Gordon never gave the numbers for the amount of foreign ownership so I looked it up. Why wasn’t this data set included? Why weren’t there any reference sources in his “paper” at the end so I could check his data? I didn’t see the usual list. I think Josh Gordon is a sophist who has a theory then cherry-picked the data to “prove” it thus omitting the amount of foreign ownership.

Try reading my given article again: 5% foreign-owned market share in Vancouver. So you can lay the blame like Gordon on 5% of the market? Could there be another factor involved? Media hype? Market sentiment? Self-reinforcing unfounded assumptions? Gordon himself wrote, “Correlation doesn’t equal causation.”

Now tell me how the following doesn’t refute his paper. Write out your list. I’ll read it. Tell me your argument. I want to hear it.

(mentioned authorities)
Derek Holt, head of Capital Markets Economics at ScotiaBank vs. Josh Gordon School of Public Policy, Simon Fraser University

MONEY
December 19, 2017 7:31 am Updated: December 19, 2017 5:47 pm

Foreign homeownership less than 5% in Vancouver, Toronto: StatCan
By Erica Alini

https://globalnews.ca/news/3924481/foreign-homebuyers-5-vancouver-toronto-statcan/

Main points:

Non-residents owned 3.4 per cent of all residential properties in Toronto, according to new housing statistics by Canada Mortgage and Housing Corp. and Statistics Canada. In Vancouver, non-residents owned 4.8 per cent of residential properties.

The impact of foreign homeowners is likely more pronounced in the condo market, where non-residents hold 7.9 per cent of residential properties in Vancouver and 7.2 per cent in Toronto, StatCan found.

“Every attempt at estimating the role of foreign buyers reaches the same conclusion: They play an overstated role compared to the facts, while policy measures that target foreign buyers are more about the politics than the economics,” Derek Holt, head of Capital Markets Economics at ScotiaBank, told Global News.

B.C.’s first-ever data on foreign homebuyers in Vancouver showed that non-residents accounted for five per cent of purchases in June of 2016, before the implementation of the tax.

A similar survey in Ontario shower non-resident homebuyers accounting for around seven per cent of monthly purchases in Toronto, prior to the tax.

#34 AGuyInVancouver on 06.20.19 at 7:19 pm

Since Garth is a big fan of Busines sin Vancouver and Glacier Media, just thought I’d leave this here for him from today’s issue:

“Foreign money being pumped into the real estate market in Greater Vancouver has a strong correlation with unaffordable homes, according to new research from policy analyst Josh Gordon.

Municipalities in the region with the most non-resident participation in the housing market have the biggest gaps between average house price and average income, and are now showing the biggest slump in sales, Gordon concluded.

While Gordon’s conclusion in his newly published analysis may not come as a surprise to most British Columbians, he said new data from Statistics Canada provides for an even more “compellingly documented” case against foreign cash inflows that have led to local income earners unable to buy a home, or upgrade, or even rent – the “decoupling” of local incomes from the housing market….”
https://biv.com/article/2019/06/data-paints-compelling-picture-foreign-money-skewing-vancouver-housing-market

#35 TurnerNation on 06.20.19 at 7:26 pm

For the Schlock Pickers and YieldHounds.
Past few days have seen panic buying – absolute – in Bonds, Gold futures.

Don’t mind my diction | it’s an affliction | ain’t looking for no benediction.

#36 Yvrmc on 06.20.19 at 7:30 pm

Hey Flop hows it going ? The melt continues , slowly but surely prices are dropping . 6-8 months ago only a dozen houses in N Van under 1.2 m . Today , 24 properties . Hope it continues .

#37 Lost...but not leased on 06.20.19 at 7:41 pm

What…only 2 comments?

#38 Alberta Ed on 06.20.19 at 7:45 pm

Man up. And get a good financial advisor.

#39 mark on 06.20.19 at 8:13 pm

You can tie all these problems back to not having a plan. If you don’t know what you’re investing for, why are you investing?

#40 Paul on 06.20.19 at 8:35 pm

#13 Howard on 06.20.19 at 5:00 pm
The Liberals just did ANOTHER thing to win my gratitude and admiration. I’m actually shocked that they had the gumption to do this. This gruesome trade is now a thing of the past.

Canada becomes first country to pass comprehensive ban on shark-fin imports and exports

https://business.financialpost.com/news/economy/canada-becomes-first-country-to-pass-comprehensive-ban-on-shark-fin-imports-and-exports
————————————————————————————————
Hate to be cynical But after the pipe line had to throw the environmentalist a bone make that a fin.

#41 crowdedelevatorfartz on 06.20.19 at 8:37 pm

@#37 Lost
“What…only 2 comments?”
+++++

Garth , unlike most blogdogs, has a life.
He stopped after the first two struck gold……and went to a concert.

:)

#42 reynolds531 on 06.20.19 at 8:45 pm

Total return, so dividends included for CPD since inception is 65 basis points per year. And then you get to pay tax on the dividends. The tax credit doesn’t look so good from that perspective.

#43 SmarterSquirrel on 06.20.19 at 8:50 pm

Speaking of some crazy blog’s advice… I’ve been trying to convince people to prepare for retirement, and the method that has worked for me is through mostly dividend growth investing. What has worked for me is as dividends come in, I keep reinvesting in more dividend growth stocks, so even when markets tank I keep buying more dividend growth stocks with solid fundamentals. I’ve put up a spreadsheet to help people track their dividend stocks to hopefully help people avoid the situation you described of finding the cupboards are bare. I hate the idea of people realizing they face poverty for the rest of their lives in their senior years simply because they didn’t plan. I hope I can help people avoid that by convincing them to start preparing now.

#44 crossbordershopper on 06.20.19 at 9:02 pm

Garth is correct historically but it is rear view looking. the world has changed, we are talking zero or negative rates, high leverage, the traditional yardsticks of valuation are thrown out,
billions are being made in the us market every day, you have to ask yourself how can a company like slack(work) trade 130 million shares and be valued at 21 billion us with 500 million in sales and losses.
valuations, relationships of valuations, hedges with gold and oil etc are historic, the future will be different far different then the past, and bonds paying zero and pref purchased simply for a tax credit is nothing like a muni that the us offers.
the first thing before investing is making the money, and honestly due to slow economy, no access to credit, low income customers, high taxes, and regulations, its really hard to make money and save it in Canada.
easier in general in the usa. so canadians talk about dividend stocks and americans want growth, thats why they talk billions and we talk millions.

#45 ImGonnaBeSick on 06.20.19 at 9:26 pm

#26 Jay Currie on 06.20.19 at 5:53 pm

Jay, just have them buy XGRO, VGRO or ZGRO until they need to diversify more. Eventually throw in some XRE or ZRE and when they get to their 30s, have them start buying some ZAG to get them into balance.

#46 DON on 06.20.19 at 9:28 pm

#41 crowdedelevatorfartz on 06.20.19 at 8:37 pm

@#37 Lost
“What…only 2 comments?”
+++++

Garth , unlike most blogdogs, has a life.
He stopped after the first two struck gold……and went to a concert.

:)
____________________________

The site was down for a bit…message said to have patience and quit trying to reload.

#47 DON on 06.20.19 at 9:31 pm

Thank you Garth – for you great analysis and advice.

But time to chum the waters…

https://www.thestar.com/vancouver/2019/06/19/analysis-shows-foreign-money-fuelled-vancouvers-shockingly-high-real-estate-prices-says-academic.html

“VANCOUVER—A Vancouver academic says new housing data shows that foreign money fuelled the region’s extreme disconnect between incomes and home prices, but not everyone agrees with his analysis.

Using newly-released data from Statistics Canada, Josh Gordon, a professor at Simon Fraser University’s School of Public Policy, has shown that the Metro Vancouver cities that developed the widest gap between home prices and incomes also had the highest share of non-resident ownership….”

#48 DON on 06.20.19 at 9:32 pm

Here’s another one.

https://www.theglobeandmail.com/canada/article-airbnb-likely-removed-31000-homes-from-canadas-rental-market-study/?utm_medium=Referrer:+Social+Network+/+Media&utm_campaign=Shared+Web+Article+Links

#49 Cottingham a bargain on 06.20.19 at 9:33 pm

Garth-“ Meanwhile millions of Canadians adopt a one-asset strategy, leveraging real estate to buy more real estate, oblivious to the risk, the tax implications or the lousy ROI.”

Lousy ROI ? Cmon you can’t be serious.

If you had done as you quoted and repeated over and over again( as some have) you have built dynasty’s.

Simply look to some prominent names in the Italian and Jewish communities for confirmation of that.

Sorry Garth but looks like you fell , or stepped ,into that one .

#50 Leo Trollstoy on 06.20.19 at 9:34 pm

If you need $ to invest as per Garth’s advice, become a tech worker in Toronto

Toronto’s tech worker pay growth is among the highest in the world
https://www.thestar.com/business/2019/06/20/torontos-tech-worker-pay-growth-is-among-the-highest-in-the-world.html

#51 Old Dog New Tricks on 06.20.19 at 9:38 pm

I’ve made a few mistakes over the years. Complete blowouts on individual stocks. Tahera diamond, circuit city, VHQ remember video rental stores. All went to zero. Admittedly I even purchased more of some of these on the way down. What a dumbass. Garth’s advice is bang on. Nobody knows what’s gonna happen. Might as well by the whole boat. You could post this one a hundred times and it would still be worth it’s weight in gold…..ahum in broadbased ETFs, prefs and bonds.

#52 Flop... on 06.20.19 at 9:52 pm

#46 DON on 06.20.19 at 9:28 pm
#41 crowdedelevatorfartz on 06.20.19 at 8:37 pm

@#37 Lost
“What…only 2 comments?”
+++++

Garth , unlike most blogdogs, has a life.
He stopped after the first two struck gold……and went to a concert.

:)
____________________________

The site was down for a bit…message said to have patience and quit trying to reload.

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

DON, don’t rain on a The Crowdie and Flop parade.

It was beautiful while it lasted…

M45BC

#53 Guy Fawkes on 06.20.19 at 10:02 pm

Happy Birthday Flop!

M43ON

#54 ImGonnaBeSick on 06.20.19 at 10:04 pm

#51 Flop… on 06.20.19 at 9:52 pm

M45BC

—–

Flop, did you just have a birthday?

#55 Ustabe on 06.20.19 at 10:08 pm

Just back from a trip up the Dempster to the Arctic Ocean wrapped around a few days in Dawson City.

Where they mine gold still but obviously now also mine tourists.

Anyone want a job? Everywhere we go there are help wanted ads and posters up…everywhere. Not just the cook, server stuff either, entire place is booming.

All for now.

#56 SoggyShorts on 06.20.19 at 10:24 pm

#76 Stan Brooks on 06.20.19 at 12:36 am
#16 SoggyShorts on 06.19.19 at 5:03 pm

GTA + BC are the most recognizable poster children of the housing bubble, but price of groceries, veggies and fruits (over 16 % rise according to stats Canada in one year, imagine what the real number is…, services,….) are consumed by everyone.

What you say about your expenses not varying above 2 % despite inflation is either untrue, lacking precise calculations or you are aggressively cutting on spending, focusing on substitution with lower quality products/services.
*************************
Somehow this very important fact keeps failing to penetrate:
Most people don’t live in the GTA

♦Alberta houses haven’t changed in price in a decade, why would rents?
♦Gas price in Edmonton in May 2015 was $0.94, And today it’s $0.919
♦Netflix has gone up from $10 to $13 which is a big jump, but only represents 0.0006% of my annual spending
♦Cellphone: slightly cheaper plan today than before, and much more data included
♦Internet: again slightly cheaper and much faster.
♦Electricity: no change in many years in Edmonton (other utilities are included in rent)
♦Groceries. Yes, those have gone up as I said, but not by a whole lot, and again those fruits and veggies represent a rather small portion of annual spending.

I’m in a financial position where I don’t need to pay much attention to spending so I just go over it at the end of each year(last 3 years have been nearly identical) No focus on substitution, and I certainly never pick lower quality products or services.

I get it. If you are a house-poor vegetarian in TO you’ve probably had your ass kicked by price changes in the past few years, but why would you pick that life?

#57 BD on 06.20.19 at 10:37 pm

This was an awesome post – one I will definitely hold on to as a reminder of the purpose of a 60/40 portfolio!

The below noted youtube video is also one of the best I have seen to understand Vancouver Realestate price increases!
Vancouvers Next Top Agent – Interview with Steve Saretsky & Mark Wiens
https://www.youtube.com/watch?v=uINBod566V8

#58 IHCTD9 on 06.20.19 at 10:37 pm

#27 Linda on 06.20.19 at 5:55 pm

Grace does have the paid for house. Would she not be able to sell, invest the proceeds & live off the income for the remainder of her life? She should at least get survivor’s CPP benefits & presumably is old enough for OAS, plus has $50,000 in cash to cover her expenses in the interim. It may not be a huge amount of income, but it is at least better than living off just CPP/OAS/GIS
———

I don’t think G has a choice about selling the house. I can’t imagine CPP survivor benefits + OAS + GIS pay enough to live and cover the costs of ownership comfortably. Aye, sell the house, invest in something safe.

Maybe she has kids she can move in with until she needs more care than they can provide, that would be a game changer.

#59 Fortune500 on 06.20.19 at 11:11 pm

VGRO OR VBAL

Done …

#60 Rargary on 06.20.19 at 11:19 pm

#46 DON on 06.20.19 at 9:28 pm
#41 crowdedelevatorfartz on 06.20.19 at 8:37 pm

@#37 Lost
“What…only 2 comments?”
+++++

Garth , unlike most blogdogs, has a life.
He stopped after the first two struck gold……and went to a concert.

:)
____________________________

The site was down for a bit…message said to have patience and quit trying to reload.

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

DON, don’t rain on a The Crowdie and Flop parade.

It was beautiful while it lasted…

M45BC

………..

Agreed! Garth could’ve been out shaking his booty! With all he gives us, may he enjoy his early departure!

#61 L on 06.20.19 at 11:47 pm

Just back from Euclid, Cleveland…..average single detached house price $56,000 US

#62 DON on 06.21.19 at 12:04 am

This is a favourite…BC Government Civil Forfeiture Case.

June 20 – 2019

https://vancouversun.com/news/staff-blogs/real-scoop-crown-says-evidence-proves-guilt-in-drug-case

And modus operandi for the former BC Liberal Government is very telling. Good Commentary and disgusting corruption.

Here’s the original story by the Sun reporter:

https://vancouversun.com/news/local-news/b-c-has-sold-50-schools-and-educational-land-lots-in-six-years

Do we have to wonder why the Greens couldn’t be seen supporting the BC Liberal/Conservative/Social Credit criminal organization. The info rolls out monthly…Quebec has nothing on BC corruption. But Ford is doing just grrrreat!

https://www.thestar.com/politics/provincial/2019/06/20/ford-demotes-fedeli-thompson-fullerton-and-macleod-as-he-scrambles-to-reboot-tory-government-with-massive-shuffle.html?source=newsletter

Ford should have seen this coming when he hired the usual suspect…

https://nationalpost.com/news/canada/former-b-c-premier-will-lead-doug-fords-independent-inquiry-into-liberals-past-spending-in-ontario

And then there is this asshat (remember a lot of former BC Liberal henchmen and women fled B.C. to work for both Kenny and Ford and Trudeau and Scheer.

https://www.cbc.ca/news/canada/edmonton/premier-jason-kenney-earplug-stunt-1.5183189. BC Liberals do similar things.

Great weekend to sit back and take in the movie 2006 Idiocracy. Becoming an reality closer and closer by the day or so it seems.

#63 Deplorable Dude on 06.21.19 at 12:05 am

It was snowing in the Oakanagan today….

It’s nearly July….

#64 DON on 06.21.19 at 12:11 am

DON, don’t rain on a The Crowdie and Flop parade.

It was beautiful while it lasted…

M45BC

*********
lol -I know. I

I thought the error message was funny from the site admin,

‘we would appreciate it, if you, yes you dummy, would quit pushing reload and give us time to fix this or you should expect a visit from Screwed Canadian Millennial’

You guys were sitting in pole position for a while.

#65 crowdedelevatorfartz on 06.21.19 at 1:13 am

@#53 I Think Im Gonna Be Sick( I ate too much cake!:(

“Flop, did you just have a birthday?’

++++++

In the beginning there was Life
Then Flop.
Then the Summer Solstice.

The rest of us just got a crappy Cake

#66 crowdedelevatorfartz on 06.21.19 at 1:20 am

@#54 Ustabe
“Just back from a trip up the Dempster to the Arctic Ocean wrapped around a few days in Dawson City.”
******

Ahhh the Dempster.
The REAL true north strong and free.

Did you fuel up at the Eagle Plains Lodge?
Have a pee at the NWT/Yukon/continental divide monument? (some will flow to the Pacific and some to the Atlantic)
Stop in Ft McPherson at the little church with the Lost Patrol gravesite?
The Dempster…..how were the blood sucking skeeters? Voracious in June? Or barely hatched?

#67 Smoking Man on 06.21.19 at 1:22 am

Forex, getting tired of the wife spending 2 times what I make at the tax farm. Hobby that forces me not to be day drunk.

So I wrote a wee program in excel vba, that sends her buy and sell signals. She opened up a demo account Jan to Mar. Did good.

In March we took a weekend off from the casino and invested her garanteed losses of about 10 k. Into avatrade.com

From March too a few days ago betting 10 contracts of CFDs she turned ten ga into 127k

Ok girl now we up it to 100 lots.

Now her pnl is at 227k

Will I share this knowledge. Only if you dogs buy me a beer at South Side Johnees this Saturday’ night.

If you cant make it. Take two bets at any time , sell and buy contracts.

Dont give to fkd which direction it goes. You are hedged.
Soon as the winning side makes a quarter of a sent re buy in that direction.

Communist hate us because there to stupid to figure out how to get filthy rish with little or no effort.. Low IQs

Social Justice…….

Losers.

#68 yvr_lurker on 06.21.19 at 1:28 am

Bad situation. However, if she lives in a university town or near a college she can rent out rooms to university students. I have a neighbour who is 72 years old who is in good health who rents out two rooms for 8 months a year. In YVR it keeps her from having to sell the place, and I am sure she does not report anything to the CRA….

#69 Smoking Man on 06.21.19 at 1:55 am

Gravy Train on 06.20.19 at 1:46 pm
#79 Smoking Man on 06.20.19 at 2:31 am
DELETED

#80 Smoking Man on 06.20.19 at 2:49 am
DELETED

Spewing more hate, Smokey? I’m so glad Garth muffles you! Why don’t you go post your hate on The Daily Stormer and leave us alone?
….
You’re just a deranged teacher who never made big bet to get rich.

Safe space weirdo.

My wife who doesn’t have a high school diploma just made almost a quarter million betting usdcad since March.

My recipe.

I red pilled her, she loves trump now.

Call her stupid. But she probably made 10 years worth of your salary crumbs in one day trading Forex on a program I wrote while shit faced out of my mind.

Class dismissed.

#70 Tony on 06.21.19 at 4:11 am

Re: #14 Kilt on 06.20.19 at 5:06 pm

Long term bonds still pay a handsomely sum today. By the end of 2021 people will look back and think how bonds paid vast sums of money today.

#71 Tony on 06.21.19 at 4:23 am

Re: #44 crossbordershopper on 06.20.19 at 9:02 pm

You forgot about companies like Beyond Meat whose shares are basically worthless yet trade at absurd valuations. Middle class Americans can’t even afford real meat.

#72 Howard on 06.21.19 at 7:08 am

#40 Paul on 06.20.19 at 8:35 pm
#13 Howard on 06.20.19 at 5:00 pm
The Liberals just did ANOTHER thing to win my gratitude and admiration. I’m actually shocked that they had the gumption to do this. This gruesome trade is now a thing of the past.

Canada becomes first country to pass comprehensive ban on shark-fin imports and exports

https://business.financialpost.com/news/economy/canada-becomes-first-country-to-pass-comprehensive-ban-on-shark-fin-imports-and-exports
————————————————————————————————
Hate to be cynical But after the pipe line had to throw the environmentalist a bone make that a fin.

——————————————–

You are misreading the issue or the public if you think opposition to the downright evil practice of shark-finning is restricted to self-titled environmentalists.

This, combined with the ban on captive whales/dolphins and the phasing out of single-use plastic, has vastly improved my opinion of this PM and this government.

#73 Howard on 06.21.19 at 7:22 am

#70 Tony on 06.21.19 at 4:23 am
Re: #44 crossbordershopper on 06.20.19 at 9:02 pm

You forgot about companies like Beyond Meat whose shares are basically worthless yet trade at absurd valuations. Middle class Americans can’t even afford real meat.

—————————————-

Worthless? Hardly. They have a valid product with a massive target audience. The flexitarian movement is huge. A very large proportion of the population is decreasing its meat intake for reasons other than economics, and Beyond Meat (and its main competitor, Impossible Burger) appeals directly to this group.

Its shares are obviously currently overvalued, but then so is almost everything else on the market aside from gold miners.

#74 Elcheapo on 06.21.19 at 7:32 am

Seems a lot of folks here are getting burned on CPD. Yes we love the regular income and/or DRIP at a lower and lower price but by gosh one hates staring at that big -22% capital loss- in my case- (unrealized) day after day after day. Can anyone maybe suggest an alternative ETF? I’m as patient as the next guy but something about CPD is really grinding me. How come my US preferred ETFs are so stable by comparison?

Get over it. This is like a house you live in daily (reaping the benefit) but the market price only matters on the day you sell. Rate reset preferreds are similar – they pay you a continual benefit (dividends) and the capital value is irrelevant until you cash in. Without a doubt, it will restore. – Garth

#75 Trumpocalypse2019 on 06.21.19 at 7:41 am

My sources told me last night that US planes were in the air.

I did not want to alarm you all, because I believed it was merely a stunt, so did not report it here.

The next one will not be just a false alarm.

The escalation will take your breath away.

Hours matter. Right now. Use them wisely.

PREPARE.

#76 crowdedelevatorfartz on 06.21.19 at 8:00 am

@#68 Smoking Man
“she probably made 10 years worth of your salary crumbs in one day trading Forex on a program I wrote while shit faced out of my mind….”

+++++

Time to change your name to “you Da Man”.

#77 dharma bum on 06.21.19 at 8:50 am

#73 El Cheapo

Seems a lot of folks here are getting burned on CPD. Yes we love the regular income and/or DRIP at a lower and lower price but by gosh one hates staring at that big -22% capital loss- in my case- (unrealized) day after day after day. Can anyone maybe suggest an alternative ETF?
——————————————————————–

I’ve said it before, and I’ll say it again:

Don’t buy prefs for growth.
At best, they’ll stay at par. At worst, they’ll drop in value but come back eventually. If the shares are called, you get your money back anyway. It’s irrelevant.They are for income.

With preferred shares, you don’t need the ETFs. Just buy solid preferred shares directly (Banks, Utilities, Insurance companies, etc.). You can find lots of issues with 5+ %. Today, you can buy lots of them at a discount, and collect an even higher effective dividend. They are money machines.

Buy ’em, hold ’em, and reap the dividend income.

Oh, and don’t keep “staring at them day after day”. What are you? A child?

#78 Renter's Revenge! on 06.21.19 at 9:18 am

While I love this blog and appreciate all things I’ve learned about investing from it over the years, one thing that Garth never mentions is that CPD’s distributions are about 40% lower than they were at inception 12 years ago.

Interest rates were higher 12 years ago. How is that relevant? – Garth

#79 crowdedelevatorfartz on 06.21.19 at 9:42 am

@#71 Howard
“the ban on captive whales/dolphins and the phasing out of single-use plastic, has vastly improved my opinion of this PM and this government.”
*****

Wouldnt it have been easier to ban dolphins and increase single use plastic?
Or just ban plastic dolphins?
God bless the Liberal nanny $tate.
I’m waiting for the legislation for banning single use plastic…..

While I wait I’ll make myself a Keurig coffee and prepare my lunch….
Lets see, Loaf of bread in a plastic bag, check, sandwich meats wrapped in plastic, check, Cheese in plastic packaging, check, butter, Mayo in plastic squeeze bottle, check, bottled water, check.
Wrap sandwich in saran wrap, check.
Place lunch in nylon bag.

We’re doomed as a planet.
Prepare the jellyfish recipes.

#80 Sherry Donaldson on 06.21.19 at 10:00 am

Let’s get real. Central banks and governments crushed the competition and manipulate any money that earns interest.

This includes annuities, GIC’s, term deposits, savings accounts, bonds, strip bonds etc.. They skewed the tax laws to favour corporations and organizations and any investments, contributions etc. to meet their agenda. Do you think if anyone could get even 6% to 10% interest and pay the same lower taxes as dividends, capital gains people would bother with REIT’s, ETF’s, preferred shares, mutual funds etc. ? Most would not.

Real estate, stock markets and other private equity etc. are all there to protect the big guys at the expense of small investors and savers. Oh by the way, they made debt cheap with low interest rates so people could not have any money and then tax them to death later as in BC, Ontario etc. plus more to come. If they really wanted to help the little guy, little people they would of done the opposite then what our cracked, shaky economy’s foundation stands on right now.

I think you might not publish this comment because it is true and what happened the last 20 years at rapid pace. They changed the money game in a big way.

#81 joblo on 06.21.19 at 10:11 am

Goodbye Alberta

#82 Elcheapo on 06.21.19 at 10:56 am

“Get over it. This is like a house you live in daily (reaping the benefit) but the market price only matters on the day you sell. Rate reset preferreds are similar – they pay you a continual benefit (dividends) and the capital value is irrelevant until you cash in. Without a doubt, it will restore. – Garth”

I needed that slap in the face ;) Thanks.

#83 mrnick on 06.21.19 at 11:06 am

Seems a lot of folks here are getting burned on CPD. Yes we love the regular income and/or DRIP at a lower and lower price but by gosh one hates staring at that big -22% capital loss- in my case- (unrealized) day after day after day. Can anyone maybe suggest an alternative ETF? I’m as patient as the next guy but something about CPD is really grinding me. How come my US preferred ETFs are so stable by comparison?

Garth is largely right- forget the capital price and collect the coupons. One day-don’t know when-the interest rates will normalize and CPD will get higher.
But interest rates will need to be higher for that. And if that happens, as we saw in 2018 December, equities in general will get clobbered. So balanced portfolio is what one needs- across asset classes and currencies-so that changes in different assets don’t wreck a portfolio completely.

US preferreds are more stable because they have very little of rate resets. Rate Resets are one of the worst financial innovations(like the ARMs in the US mortgage crisis) heaped upon unsuspecting Canadian retail investors. If we had an ETF of the handful of perpetual preferreds in Canada, it would have vastly outperformed the TSX and done very well for investors over the last decade. But as they say, perpetual preferreds are risky, so Bay Street introduced rate resets. Cure worse than the disease.

Interest rates rise when economic activity increases enough to rekindle inflation. That is not inherently negative for equities. – Garth

#84 Captain Uppa on 06.21.19 at 11:07 am

Overhearing convos at work where people are predicting the markets and global economic conditions. All of them 100% sure of their predictions and talking about buying silver and gold, this and that, “pile of money to be made” etc.

I wanna just scream 60/40 you idiots! Stay invested. Be disciplined. Set it and forget it.

Everyone wants a quick fortune.

#85 Howard on 06.21.19 at 11:21 am

#78 crowdedelevatorfartz on 06.21.19 at 9:42 am
@#71 Howard
“the ban on captive whales/dolphins and the phasing out of single-use plastic, has vastly improved my opinion of this PM and this government.”
*****

Wouldnt it have been easier to ban dolphins and increase single use plastic?
Or just ban plastic dolphins?
God bless the Liberal nanny $tate.
I’m waiting for the legislation for banning single use plastic…..

While I wait I’ll make myself a Keurig coffee and prepare my lunch….
Lets see, Loaf of bread in a plastic bag, check, sandwich meats wrapped in plastic, check, Cheese in plastic packaging, check, butter, Mayo in plastic squeeze bottle, check, bottled water, check.
Wrap sandwich in saran wrap, check.
Place lunch in nylon bag.

We’re doomed as a planet.
Prepare the jellyfish recipes.

——————————————-

Banning the imprisonment of highly intelligent creatures and banning an industry which consists of slicing off a shark’s fin and tossing the animal back into the ocean ALIVE….is too much nanny statism for you?

Are bans on cock-fighting and bear-baiting also nanny statism?

I don’t think you quite thought through that statement.

Re: plastic. Canada is in a garbage crisis (okay, that sounds alarmist; let’s say serious garbage problem). Unlike the climate hysteria, this problem is actually imminent now that China and the Philippines no longer accept our trash. Either we ban frivolous non-biodegradable trash or tax it heavily. But the responsibility should fall equally on manufacturers as on consumers.

#86 entropy on 06.21.19 at 11:44 am

It’s overwhelming for the vast majority to wrap their minds around.

#87 Deplorable Dude on 06.21.19 at 12:22 pm

DELETED

#88 TalkingPie on 06.21.19 at 12:27 pm

#79 Sherry Donaldson on 06.21.19 at 10:00 am

I’m very curious as to what business and/or finance training and experience you’ve had to help you arrive at your conclusions.

I’m also curious as to why you think that Garth would hesitate to publish a comment based on the fact that it’s “true.”

#89 Calgary Rip Off on 06.21.19 at 12:29 pm

Definitely helpful advice.

In addition to investment, what a person does in their time also dictates their mental and physical tool set.

Specifically, what decisions is the person making with regarding to nutrition, exercise, and mental skillset?

In Alberta the economy is volatile. In health care money is tight and as such employment is scary. What to do? Find something in your spare time that is interesting and can provide a valid skill and change your mindset. For me that is computers. Due to politics at work and no error of my own one of my job duties was removed. Having a skill does not equate employment as first come is not first served. The key is to keep trying and learning. Time is money. Dont waste yours. So when Im not at work I dont waste time.

If Im not cleaning around the house, working on computers, or exercising, Im spending time with family or playing guitar/piano. Most people only exercise for vanity and think”Im old, exercise is for young people”.

That attitude is crap. Your body is like a car. Eventually it will require replacement. Unfortunately that isnt how the world works. So take care of it. Every day I see people who neglect diet and exercise and end up with heart problems. Dont waste your time with drugs and alcohol to cope, find something spiritual to cope.

Mind and body are also investments. In order to choose investment strategy wisely both those must be in order.

I bought Microsoft shares in 2000 at $3K Current value is $13K. Bunch of work mutual funds, other stuff. Lousy overpriced coffin(house) in NW Calgary with bylaw crap attached(forced lawn mowing and keeping up with the neighbours nonsense).

I worry about the general public. I find it amazing that most people can put their underwear/panties on correctly. This perception is accurate from what I see people talking about on the internet, at work and driving habits in Calgary.

Keep up the good work. Compliments for patience in dealing with the sheep general population.

#90 crowdedelevatorfartz on 06.21.19 at 12:45 pm

https://nationalpost.com/news/canada/a-walk-in-the-park-alleged-human-smuggling-operation-may-have-brought-hundreds-of-chinese-migrants-across-b-c-border?video_autoplay=true

Nothing to see here.
Move along.
Nothing to see.

No, nothing other than a glimpse into the misery of people trapped in human trafficking. Was there another point you were making? – Garth

#91 JB on 06.21.19 at 12:47 pm

68 Smoking Man on 06.21.19 at 1:55 am

Gravy Train on 06.20.19 at 1:46 pm
#79 Smoking Man on 06.20.19 at 2:31 am
DELETED

#80 Smoking Man on 06.20.19 at 2:49 am
DELETED

Spewing more hate, Smokey? I’m so glad Garth muffles you! Why don’t you go post your hate on The Daily Stormer and leave us alone?
….
You’re just a deranged teacher who never made big bet to get rich.

Safe space weirdo.

My wife who doesn’t have a high school diploma just made almost a quarter million betting usdcad since March.

My recipe.

I red pilled her, she loves trump now.

Call her stupid. But she probably made 10 years worth of your salary crumbs in one day trading Forex on a program I wrote while shit faced out of my mind.

Class dismissed.
…………………………………………………………….
Hey uhh smoking Guy didn’t you call her stupid before? and a hag to boot! Huh no high school diploma? You sure know how to pick em Smoky!
Is this the same wife or another one?
BTW Hope she is paying her part and renders therefore unto Caesar the things which are Caesar’s. Otherwise it could get ugly!

#92 What A Joke on 06.21.19 at 1:36 pm

#86 JB – The Smoker will be going to Southside Johnny’s tomorrow night. Its a Dive Bar Club, and tomorrow night the feature act on stage is some dude called Bone Yard. Its a classless joint filled with the wrong kind of women. He wants people to meet him there, and will you be going? Anyone?

#93 Rick Rinaldo on 06.21.19 at 2:05 pm

I don’t know what is in Sherry Donaldson’s mind but what it seems she is pointing to is all the QE, bond buying, constant cutting of interest rates and them changing the calculation of the real cost of living or C.P.I. whatever they want to call it. They don’t want people to have to make money easily with interest as it give them more options to even the simplest of people.

Europe and Japan has nominal negative interest rates. You can’t say that ever happened. Everyone can see that inflation is much higher than what they say it is and interest rates are kept low for long to punish saving and investing in interest bearing or compounding investments plus tax laws are more for business and higher risk investments.

Ben Bernake even talked about this during his U.S. Fed term. They wanted Americans to buy in real estate and stocks, equity type investments. They can use whatever reason they want but the powerful want the economy and money to be this way. They knew this would happen and know how they can control and influence markets, economies over years. It is so obvious now that you must be living in a cave if you don’t know what happened the last 20 years or even since 2008.

#94 jess on 06.21.19 at 2:12 pm

tax fairness platform:

Close regressive tax loopholes:

Eliminate the stock option deduction. lower tax rate on capital gains,business meals and entertainment expense deduction.(“entertaining”Saadi Gaddafi)
Reduce corporate dividend tax credit.
Cap lifetime Tax Free Savings Accounts at $65,000.
Conduct an open public review of tax loopholes and expenditures

2.Make our Tax System more Progressive:
read more @
https://www.taxfairness.ca/sites/default/files/resource/c4tf_federal_election_2019_platform_proposals.pdf
Cap lifetime Tax Free Savings Accounts at $65,000. Tax Free Savings Accounts might not cost the federal government billions up front, but they will be highly corrosive for federal and provincial revenues over the longer termif the amounts that can be accumulatedkeep on growing–and it’s a tax loophole that primarily benefits top incomes, who have already maxed out on their RRSPs and other pensions. While this tax break costs the federal government an estimated $1.3 billion annually now, this amount can be expected to balloon to almost $10 billion in a dozen years and to keep on growing, unless it is contained now.The total limit per individual is now up to $63,500. The federal government should cap it at this amount to stop increasing this blood flow from future revenues. This would savethe federal government an estimated $200 million annually to start, and considerably more in future years.

#95 Cottingham a bargain on 06.21.19 at 2:21 pm

#89 crowdedelevatorfarts.

Garth did you even read the article? 11 million in real estate and Vancouver for Kong and responsible for an estimated 900 illegal immigrants in the country further draining our public system.

Unlike crowded elevator well warranted sarcasm I will blatantly say that there IS something to look at here

#96 crowdedelevatorfartz on 06.21.19 at 2:45 pm

Was there another point you were making? – Garth

Oh I dont know.
Perhaps…….
The complete mockery of our immigration Laws, our Borders, our Courts?
Because people are desperate?
Ther’s millions of desperate people around the world. Tens of Millions. Hundreds of Millions.
Whats that tell all the legal immigration applicants waiting patiently for years to be allowed in as line jumpers pay cash to snakeheads, flagrantly sneak across the border and lie to officials when they are stopped?
Not the new Canadians I want to encourage to move here.

If we cant maintain our Laws and borders what’s the point of wasting money on the Border Services ?
Unless they, as I have always suspected, are merely there as tax collectors and nothing more.

I didnt print the story.
I just linked it.

#97 ImGonnaBeSick on 06.21.19 at 2:54 pm

#84 Howard on 06.21.19 at 11:21 am

Howard, you’re off your fricken rocker.. no one in Canada is eating shark fins. It is the very definition of virtue signalling. It means nothing except to the flakes that need it to mean that they did something without actually having to do anything. It’s the same as the carbon tax, same as the single use plastics ban…

We went to plastics because glass is too heavy to transport (read more fuel consumption) and because we were cutting too many trees with paper… Figure it out.

Incinerate it all like we’re doing with the garbage from the Phillipines. We’re all going to burn in 12 years anyways right?

#98 Cristian on 06.21.19 at 6:35 pm

“If doesn’t matter if bonds pay you peanuts since the primary role is to make the portfolio less volatile and also mitigate equity market plops.”

Same can be said for gold. But again, many misunderstand this as well.

Hardly. Gold is a volatile commodity. – Garth

#99 Jack Stanford on 06.21.19 at 7:46 pm

I heard Paul Martin former finance minister in the mid 90’s under Jean Chretien Liberals floating around an idea of a yearly capital tax in one’s RRSP balance but they did not have the guts to do it then.