It’s over!

Well, that was some week. The Dow plunged. It crawled back. It fluctuated. Then it soared. Bonds roared and retreated. Gold jumped, gyrated and weakened. The recession talk crescendoed, then we all got distracted with Hong Kong, Putin’s insane nuke-in-a-missile explosion and Trudeau’s ethics. Or lack thereof.

If you ever wonder why a balanced, diversified set-it-&-leave-it portfolio is the best choice, just think about this week. Stress will kill you faster than anything. So forget about the inverted yield curve, climate change and Trump. Let’s focus on the micro, since we can’t change the macro.

It’s time, in other words, to address some to the plaintive cries from the steerage section…

“My boyfriend has been following your blog for a long time now and it has become his morning ritual to grab a coffee and read your posts,” says Jillian. “Thanks for the valuable information! I wanted to ask your advice when it comes to paying off our debt and how we should go about prioritizing it.

“I work full time in oil and gas, and my partner is a firefighter/paramedic here in Alberta. I graduated with a business degree and am currently working away at my masters. We are 25 and 28 years old, have 7k credit card debt, 0 car payments, share finances and have a combined income of 120k annually (in 4 years we’ll be at min 160k). Approximately 117k saved split between our home equity/savings/TFSA/stocks, and 335k left to pay on our mortgage.

“What are your thoughts on getting a HELOC, LOC, etc. to pay off the student loans? Should I keep making the monthly payments I can comfortably afford, or is there a better and faster way so I’m not paying it off until I’m in my mid 30’s? My partner has 9k right now in his stocks, but we were thinking of pulling it out to pay off a large chunk of the loans since my interest alone is significantly higher than his annual return. I think we’ve put ourselves in a pretty good financial position given our age, but what are your thoughts so we can further progress and achieve our goals to retire by 50-55 with 0 debt? Thanks for all your help!”

That’s easy, Jill. Dump the stocks and pay down the debt. That BF of yours shouldn’t be flipping equities anyway, since you two have a negative net worth – total debts far exceeding your liquid assets and equity. Losses are not justified at this point, and with volatile markets upon us, holding single stocks is a really dumb idea when your finances are thin. Didn’t he learn anything reading this blog every morning? Does he just come for the weirdo dog pictures?

No HELOC, either. You might be saving a little on the loan rate, but you’re just replacing non-secured debt with new debt locked against your home. Better to set a household budget that lets you trash the student loans as fast as possible. Don’t Starbucks. Eat at home. And don’t accelerate your mortgage payments.

Now here’s Aaron. Asking for his sister…

She is heading back to school and has qualified for a student grant and loan.  The loan is about $8,000 which she doesn’t plan on using at all.  It is interest free until after school is complete (about 2 years).  I’ve told her it’s free money to take and invest for the length of her schooling, paying back the principal at the end when required (or potentially not if the interest is very low).

I’ve got a Questwealth ETF managed portfolio set up at 60/40 with good exposure and had initially suggested the exact same for her. My question then is this; you’ve said it’s always a good time to invest… so is it in this case and is the right set up your standard portfolio?

She has an amazing chance to become an investor with this OSAP loan and see some tangible results, thus creating some life-long healthy financial habits?

No. Bad idea. A loan is a loan. If she takes the money it’ll have to be repaid in two years and there is absolutely no guarantee a portfolio of ETFs will be worth more at that time. Sure, the expectation is that gains will accrue, but what happens if there’s a temporary downturn exactly when the funds are needed? Investing for a period of 24 months is not investing. It’s speculating. And remember that we’re in Year 10 of an economic expansion, with high stock markets and low bond yields plus lots of talk about an inevitable slowdown. No reason to be a doomer, for sure. But neither should you tell her profits are a sure thing.

The best life-long lesson for sis is to eschew debt, be very careful about leverage and be beholden to noone.

Finally, Andrew has a question about those predatory mortgages aimed at wrinklies.

A friend of mine is considering a reverse mortgage & I recall you’ve posted on that subject. Can you please let me know the title of that post(s) so I can forward her your thoughts about them.

Sure. The topic has been addressed here a few times. The most recent entry is this one. Tell your friend to be highly skeptical of the marketing materials, the long-term consequences and the true costs of a reverse mortgage. The rate charged on outstanding principals is outrageous, the admin fees are substantial and the debt keeps growing – to be paid by the estate.

If you need money to live on, sell the damn house, invest and rent. If you hate your children, get a reverse mortgage.

 

74 comments ↓

#1 Katherine on 08.16.19 at 5:12 pm

Hi Garth,
I’ve been a long-time reader of your blog for many years. It is information and hilarious at times….love your sense of humour. I also love your dog photos and get very excited at the occasional cat photo. Is that enough of a suckup? Lol. Anyway, need to disagree with you today re Aaron’s sis. She should take the $8000 OSAP loan which is interest free while she is still in school. She can deposit it with EQ bank and earn 2.3% and the funds can be withdrawn at any time. It doesn’t amount to a ton of money but every little bit helps and she won’t have to pay taxes on the interest as her income is so low. BTW, popped by your place in Lunenberg last week….didn’t see you . Lovely town.

#2 Katherine on 08.16.19 at 5:13 pm

Typo. “Information” should be “informative”

#3 Mike on 08.16.19 at 5:36 pm

Wasn’t Gordon Pape once advocating the Reverse Home Box program? What a shill.

Eschew debt while interest rates are low. Think your kids or grandkids will EVER see a mortgage below 5%?

fuggetaboutdit

#4 Katherine on 08.16.19 at 5:38 pm

Forgot to add….FIRST!!!

#5 Sovavia on 08.16.19 at 5:38 pm

No piece of real estate is free of family ties, neighbours, history, landscape and memory: this is the main lesson from the British Isles and their common obsession with purchasing land (Mordecai Richler tells the tale well).

It is not the same parts of the brain involved in pricing real estate and the stock market: to buy Stonehenge or Exxon Mobil?

The Irish even had to slaughter racehorses for meat to payoff their real estate debts in the City of London.

Foresight and emotions do not mix well: best to sleep on it for major financial decisions. Too many rush (or are rushed). What is all the hurry about anyway?

Also, if you are going to abuse power and obstruct justice for a few votes, do it somewhere else than in Canada.

#6 mitzerboyakaQueencitykidd on 08.16.19 at 5:43 pm

Balanced Diversified
old dogs
children
and watermelon wine

#7 BlogDog123 on 08.16.19 at 5:48 pm

If they need some celebrity like Alex Trebek or some grey haired dude to sell you reverse mortgages or guaranteed issue life insurance on TV, remember who’s ultimately paying for that celebrity endorsement.

You are, sucker.

That’s why you don’t get your haircut from some chain that advertises on TV. The cost of the commercial is ultimately paid for by you in a higher price of haircut or them hiring a barely qualified mop-chopper.

#8 Nonplused on 08.16.19 at 5:59 pm

Not sure what the Russians are thinking with their crazy nuclear powered missiles but I guess the theory is once those things are actually fired off there isn’t going to be much to worry about the day after anyway.

Turdeau on the other hand appears to be melting down all on his own. Where does he get off thinking he can just ignore the law when it suits his donors in Quebec? And then get in front of a microphone and condescend all Canadians by telling us that his actions were in our own best interest? I hope to Dog he turns out to be a single use prime minister.

(PS paper straws suck. They turn to mush before you are finished your pop and they feel weird. How much space are the plastic straws really taking up in the landfill compared to everything else that goes in there? They get squished pretty flat. And the paper ones take up just as much space. It takes paper forever to biodegrade once it’s buried, so if the intent was environmental chalk it up to one more failure of the burro to properly identify a problem or come up with a solution that is at all helpful.)

#9 Kona on 08.16.19 at 6:02 pm

Why do so many people think that the way to deal with debt is to consolidate it? Why does taking on more debt seem to be the go to answer? Having sold money at 40% interest rate I have personally seen so many debt consolidation loans go off the rails. The easiest way to lower the interest that you pay on your debt is to pay as much as you can on it.

#10 45north on 08.16.19 at 6:09 pm

Conrad Black: talking about Justin Trudeau: Once he realized that the-then justice minister, Ms. Jody Wilson-Raybould, was digging her heels in, he should have informed Parliament that he was revoking the decision in the national interest and the eminent domain of the federal government to exercise the remedies of justice prudently in calculating competing priorities of national revenue, humanitarian concerns to avoid unnecessary job layoffs, the desirability of retaining in Canada such a sophisticated international engineering company, and the direct fiscal interests of the junior jurisdictions, the country’s second-most populous province and second-largest city.

https://nationalpost.com/opinion/conrad-black-8-17

in other words he should have simply over-ruled her. Had he done it openly, it would all have been over now.

#11 Shawn Allen on 08.16.19 at 6:22 pm

Canadian Banks provide an opportunity…
for new online competitors…

Jeff Bezos said something like “your margins are my opportunity”

Canadian banks take advantage with high margins on many of their products. RBC reports an ROE on Canadian personal and commercial banking of about 30%!!!

TD Direct today charges 5.5% on margin loans (this is secured lending!) and pays nothing at all on cash in a margin account. So if a bunch of us leave an extra $10k sitting in the margin account. TD lends it to others at 5.5%. Now 5.5% on your own money is nice but not fantastic. But earning 5.5% on someone else’s money is heaven.

Other examples include outrageous margins on foreign exchange transfers that are self-serve and all electronic.

I don’t think the big Canadian banks are evil but they take advantage of situations where customers are somewhat captive or at least very sticky. The banks take advantage of customer complacency.

That opens the door for a Jeff Bezos type to come in and grab business at lower margins.

#12 Renter's Revenge! on 08.16.19 at 6:26 pm

#140 Jesse on 08.16.19 at 5:08 pm

Online dating is absolutely a sh!t show for most men!

There’s a huge gender imbalance, with the worst being on Tinder where there are 9 times as many male users as female users. The ugly truth is that just like in economics, the oversupply of men makes them worthless. Add to that the fact most women’s inboxes are flooded with hundreds of messages every day because most guys spam women in an attempt to get their attention, the messages have no value either. So the women couldn’t date or even respond to most men online even if they wanted to. There are only enough women for 10% of the men.

Also, a lot of the things that make men attractive to women like their personality, social status, passions, kindness, empathy or sense of humour don’t translate well online, so women end up sorting through the available suitors based on quantifiable things like height, income and abs instead.

TLDR: Online dating is nothing like real life and is a complete waste of time for most people involved.

#13 Howard on 08.16.19 at 6:26 pm

#140 Jesse on 08.16.19 at 5:08 pm

Now, dating is like flipping through a shopping catalogue, you set your filters (age, sex, weight, height) and go to town, women are the choosers. It’s no secret that online dating favors the top 10% of men, and the majority of women. I’m not sure you guys saw that article in WaPo about how 30% of men between 18-30 didn’t have any sex in the last year – this was the highest amount of sexless men in history between 18-30. Men today just aren’t getting laid, yet the women seem to be doing fine.

————————————————

You should be old enough to understand that past 30 the tables turn, and past 40 it’s no contest.

GenZ guys have time on their side. Build their finances (singledom will certainly help with that), stay in shape, and prepare for their personal stock price to rise dramatically post 30.

#14 Clayton on 08.16.19 at 6:28 pm

Have been reading forever and also agree with about 98% of what Garth has to say but I have to disagree on the OSAP idea. She should take the loan, invest it in a something guaranteed like a GIC of Term Deposit in her TFSA.. Yes the spread is low, but the return could be huge if.. and it is an if.. if part of the student loan is forgiven, which does happen much more often than people realize. This is even more likely to happen if the sister is in a program like Nursing. It will also encourage her to learn about the differences between the TFSA/RRSP/ and non registered accounts, and the different types of investment products.

There are also numerous grants, scholarships and bursaries which one is often eligible for only if they have qualified and taken out student loans. She should also be encouraged to investigate and apply for as many of those as possible.

#15 Howard on 08.16.19 at 6:34 pm

Two comments:

1) Nobody going to mention Argentina’s stock market crashing 40% this week? I know it’s only Argentina, but it slightly an important story

2) Own GE stock? Worth watching: http://www.youtube.com/watch?v=2VCtB3E0JB0

#16 Shawn Allen on 08.16.19 at 6:41 pm

SNC lavalen?

so Conrad Black said

“…the desirability of retaining in Canada such a sophisticated international engineering company”

*****************************
“sophisticated” is an ironic choice of words for SNC

I believe member’s of the executive and Board were rotten (some of them) and lazy (the rest of them as in turning a blind eye).

Now newer management seeks to distance themselves from SNC’s own past while never acknowledging the guilt and/or negligence of the past executive and board members.

Certain individuals were guilty and should be pursued.

The notion of an in inanimate corporation being guilty is a legal charade. The notion that current innocent uninvolved share owners should pay for the guilt of executives and Board is silly.

#17 30MLeftCoad on 08.16.19 at 6:44 pm

Hi Garth,
Been reading your blog for a few years, thank you so much for all the free financial advice.
I’m at a dilemma here, I have ~7.5k federal student loans @ prime + 2.5%, 15k car loan @ 0%, 25k total in rrsp + tfsa and another 25k in my corporation’s balanced diversified ETF investments.
I am an incorporated contractor making ~150k, drawing dividends only from the corp every month, and a renter.
Should I:
1) draw from tfsa and pay off as much debt as possible, or
2) draw everything from the corp every month, and pay off debts asap (student loans, then car)
3) just pay the minimum payment for both loans, and allocate everything leftover in corp to corp investment?

Thank you for dedicating your time into this blog, we young Canadians surely owe you for the valuable advice

#18 The Wet One on 08.16.19 at 6:47 pm

I’ll have to remember that bit about hating one’s children and reverse mortgage.

Right now the muppet is tiny, cute and utterly adorbs.

In 18 years, things might be different and I might have to be drawing up the reverse mortgage papers to exact my revenge.

I appreciate that bit of wisdom Garth!

Cheers!

#19 Howard on 08.16.19 at 6:49 pm

#8 Nonplused on 08.16.19 at 5:59 pm

(PS paper straws suck. They turn to mush before you are finished your pop and they feel weird. How much space are the plastic straws really taking up in the landfill compared to everything else that goes in there? They get squished pretty flat. And the paper ones take up just as much space. It takes paper forever to biodegrade once it’s buried, so if the intent was environmental chalk it up to one more failure of the burro to properly identify a problem or come up with a solution that is at all helpful.)

—————————————-

So buy your own beloved plastic straws and bring one with you to a restaurant if they’re so important to you. What a hardship. No we should not tolerate businesses giving away for FREE something used for 10 minutes that takes thousands of years to break down. Plastic waste is deadly to wildlife that accidentally consume it whereas paper waste will pass right through their digestive tract just as it would ours.

#20 Sail away on 08.16.19 at 7:12 pm

#10 45north on 08.16.19 at 6:09 pm

“[Trudeau] should have simply over-ruled [JWR]. Had he done it openly, it would all have been over now.”

————————————————–

Agreed. A strong no is far better than a simpering and mealy-mouthed back-stabbing.

But that would have meant taking personal responsibility. The PM seems good at apologizing for others, sending out attack dogs behind the scenes, and blowing his progressive horn, but personal accountability isn’t a strong point.

#21 Bytor the Snow Dog on 08.16.19 at 7:20 pm

#118 Sold Out on 08.16.19 at 10:40 am sez:
#115 Bytor the Snow Dog

“We can do this all day…”

“I have provided citations supporting both the factual and contextual accuracy of my original statement. You have provided your unsupported opinion.”
———————————
You have provided exactly SFA. What you have done is to move the goal posts, repeatedly. You have provided zero proof that small mammals live longer than large ones.

In the interests of keeping Garth’s blog free of off topic BS, you have a nice day now.

#22 Karen Hooks on 08.16.19 at 7:28 pm

The great socialist hope of Finland is going down. The government collapses and UBI and its socialist policies are not sustainable. What a surprise, not! Bernie Sanders had a rough week, falling in the polls and now his great democratic socialist Finland is falling. More like democraptic socialism.

#23 Sail away on 08.16.19 at 7:30 pm

#17 30MLeftCoad on 08.16.19 at 6:44 pm

I have ~7.5k federal student loans @ prime + 2.5%, 15k car loan @ 0%, 25k total in rrsp + tfsa and another 25k in my corporation’s balanced diversified ETF investments.

I am an incorporated contractor making ~150k, drawing dividends only from the corp every month, and a renter.

Should I:
1) draw from tfsa and pay off as much debt as possible, or
2) draw everything from the corp every month, and pay off debts asap (student loans, then car)
3) just pay the minimum payment for both loans, and allocate everything leftover in corp to corp investment?

————————————————-

#2 seems to make the most sense. Are you holding ETF investments in your active corporation? If so, just keep in mind that these are corporation assets, and therefore vulnerable to lawsuit- one of the benefits of a corp is to limit your liability, so by holding investment assets in the corporation it sort of defeats the purpose.

If you have both an operating co and a holding co, it might be an awful long time before it becomes beneficial tax-wise to carry the holding co, since it only really makes sense when you’re making enough profit that you’ll never need to touch the money being earned.

#24 Linda on 08.16.19 at 7:32 pm

I have a reverse mortgage question. If the value of the property being mortgaged ends up being fully paid out but the property occupant is still alive, what happens? Do the payments cease? Does the lender boot out the occupant & sell the property? Or do the payments flow regardless until death do them part & any possible loss is simply written off by the lender?

A reverse mortgage is never paid off. It just grows. Until paid off by sale of the property. – Garth

#25 Flop... on 08.16.19 at 7:41 pm

I could have this one wrong but let’s give it a rip.

Planet Earth Economy ….86 Trillion.

Mars’ Economy…Zero

As my mum used to say.

You ain’t no Zero…

M45BC

“The World’s $86 Trillion Economy Visualized in One Chart

The world’s GDP still grew a healthy 6.9% in 2018, up from $80.2 trillion in 2017 to $85.8 trillion. Nearly half of this growth came from the world’s two largest economies: the United States, at $20.5 trillion (up 5.4% from 2017), and China, at $13.6 trillion (up 10%). However, fear of a global recession are mounting — much of it related to growing economic tension between the two leading economies.

The United States is still the world’s largest economy, contributing 23.9% to GDP
China, the world’s second largest economy, had its slowest quarterly GDP growth in nearly 30 years
Half of economists in a recent poll have predicted an economic slowdown in the U.S. within the next year
Unresolved trade tensions between the U.S. and China have investors on edge about global economic growth
Our data comes from the World Bank’s 2018 global GDP figures. Each country is sized to the scale of its relative GDP. Countries are grouped and colored by region. For a look at how things have changed since 2017, check out HowMuch’s 2017 analysis of world GDP.

The World’s 10 Largest Economies by GDP

1. United States – $20.49 trillion (23.89%)
2. China – $13.61 trillion (15.86%)
3. Japan – $4.97 trillion (5.79%)
4. Germany – $4 trillion (4.66%)
5. United Kingdom – $2.83 trillion (3.29%)
6. France – $2.78 trillion (3.24%)
7. India – $2.73 trillion (3.18%)
8. Italy – $2.07 trillion (2.42%)
9. Brazil – $1.87 trillion (2.18%)
10. Canada – $1.71 trillion (1.99%)

The United States and China together make up nearly 40% of the global economic GDP at $20.5 and $13.6 trillion, respectively, contributing that’s 23.9% and 15.9% to the global economy. Due to their prominence and their growing tensions, our analysis focuses on these two countries.

About half of the 280 business economists polled by the National Association for Business Economics said they expect a downturn in the United States economy by the end of next year, and analysts at both Goldman Sachs and J.P. Morgan see growth slowing to below 2 percent in the second half of 2019. What’s the reason for the expected downturn? Economists point to a number of factors for the expected slower growth. The job market, which has thrived in this economy, is still hot but has signs of slowing. Expected interest rate hikes from the Fed are also at play. There’s also the factor of growing economic inequality in the U.S. — the bottom half of Americans lost $900 billion in wealth between 1989 and 2018 — and its impact on overall economic well-being.

But the factor making the most headlines is the impact of tariffs and the possibility of a trade war between China and the U.S. The number two economy is already feeling the impact: China’s GDP growth in the second quarter slowed to 6.2%, the smallest gain since 1992. The country’s industrial output growth slowed to 4.8% in July from a year earlier, the weakest pace since February 2002. It’s uncertain that the United States and China will overcome their trade differences anytime soon, and the markets seem to suggest a long-term impasse. Despite these signs of gloom, some economists aren’t so sure that decline is inevitable, citing decades-long periods of stable growth in countries like Australia and the UK.”

https://howmuch.net/articles/the-world-economy-2018

#26 crowdedelevatorfartz on 08.16.19 at 7:42 pm

@#16 Shawn Allen

Re ; Lord exConvict Black’s comment re SNC Lavalin
“the desirability of retaining in Canada such a sophisticated international engineering company…”
+++++

I think I’d want to see if Lord Black owned multiples of shares in SNC when he made that statement.

Also.
The issue with SNc isnt their Engineering expertice ( the Canadian Association of Professional Eng’s sees to that)

It’s how SNC “won” bids in foreign and domestic contracts.

SNC was BANNED for 10 years by the World Bank for its acknowledged corruption in winning foreign contracts funded by the World Bank back in 2013.

https://www.cbc.ca/news/business/snc-lavalin-agrees-to-10-year-ban-from-world-bank-projects-1.1316719

SNC employees also “won” contracts in Quebec that smelled worse than rotten poutine on a Montreal sidewalk in August…..

https://www.cbc.ca/news/canada/montreal/snc-lavalin-ceo-guilty-fraud-pierre-duhaime-1.5001839

But the straw that finally broke the Camel’s back was when SNC used a subcontracted employee to spirit Libya’s former dictator’s family and millions in stolen loot….”out of Africa”.
Stopped in Mexico City on a private jet with Canadian Passports ……chartered by……..

https://www.cbc.ca/news/canada/cyndy-vanier-sues-snc-lavalin-for-15m-over-mexico-jail-ordeal-1.3227639

Apparently the USA had enough and decided that having Khaddafi in Montreal was a bit too close for comfort and too much to stomach…..
SNC Montreal HQ raided by the RCMP with the FBI watching in the wings…..

https://www.thestar.com/news/canada/2012/04/13/rcmp_raids_snclavalins_montreal_headquarters.html

Nice.

I could go on providing link after link after link ad nauseum but…according to our intrepid (insipid) Prime Minister, “Its about jobs!”

Please….
Campaign contributions and votes would be more accurate…….

Anyone that suffered through BC Premier Christy Clark’s vapid, inane, repetitive, election drivel will suffer deja vu….

As a former SNC employee that quit in disgust BEFORE all this merde hit the fan……….

I intend to vote Conservative in the next election to send the Rot at the top a message…

“We’re as mad as hell and not going to take it anymore…”

#27 Eric on 08.16.19 at 7:51 pm

I’m a little confused. I get why GICs aren’t great, but what is someone to do if they want to save a whack of money for a period of around 2 years? You’ve said many times a 60/40 portfolio is the way to go. Is a HISA the way to go then?

The question was whether to take a loan for short-term investing. The answer was, no. – Garth

#28 Vampire Studies (doctoral thesis) on 08.16.19 at 8:19 pm

30ML – sorry, no answer(s), just have a question. I see you only draw dividends. I have a corporation with comparable income but draw a wage of maybe half of that. Doing the tax calculation, whether I draw it as wages or dividends makes little if any difference. The tax laws are designed that way. By drawing a wage, you pay into CPP (over $5k per year now and maybe not a great payout for younger people) but also allow for RRSP contribution.

So I am wondering what is the advantage for this? Thanks.

#29 strawman on 08.16.19 at 8:25 pm

People suppose it better to use liquid detergent and water and a pipe cleaner to wash a reusable straw?

Much like a supposed environmentalist who doesn’t do the number one thing to save the environment: reduce consumption.

As my colleague said, “Everyone is a hypocrite.”

#30 -=jwk=- on 08.16.19 at 8:55 pm

I made about $500 putting 8k into CD’s over a three year program. paid off the loans on the 59th of 60 interest free days post graduation. If someone is giving you free money, take it.

And lol at Finland ‘collapsing’. Their government promised to move some of the local, 100% socialist healthcare systems and centralize them to make them more consistent. Right wing said no, we want private care. So the government, unable to complete their key campaign promise of healthcare insurance reform has resigned. Will trump resign since he promised ‘better care, cheaper, for everyone’ and has delivered nothing? Didn’t think so. The leaders on Finland have integrity and honour their word, as will their replacements. Can’t really say the same about USA or Canada. So who is collapsing?

#31 Flop... on 08.16.19 at 9:11 pm

Well since it’s Friday and Garth says it’s over let’s try and tie a bow on a few things.

I’ve addressed this before but some people seem confused by the concept.

Just because someone uses a handle does not mean they are posting anonymously.

Garth knows my name and my wife’s, he has for years.

Some people use multiple devices and multiple screen names and multiple email addresses.

I only use one device and one email address.

When some imposter started getting regular deletes I could not see what they had written and did not want Garth to attribute those comments to my real name.

I let it slide at first but then spoke up when I realized it could lead to a possible banning.

To the newbies chiming in that it’s no big deal using the Boom handle, I have some homework for you.

Read it and weep.

I know I did…

M45BC

M64WI

https://www.greaterfool.ca/2016/12/26/boomer/

#32 MF on 08.16.19 at 9:25 pm

13 Howard on 08.16.19 at 6:26 pm

36 year old dude here.

In a long term relationship.

Sorry to burst your bubble a bit but that whole idea of getting “even” by 30 if you are wealthier, still fit etc. just doesn’t feel as rewarding as it sounds when you actually achieve it.

Reason?

With age comes wisdom and priority change…and women’s priority in your mind goes waaaay down. You just don’t care as much about them. Even if you can get whoever you want. The time to have fun is late 20’s. When you still care somewhat lol.

Also, by this age you are usually looking forward to the next phase (starting family, focusing on career/business) and look at focusing on women as a boy’s game.

MF

#33 Millennial Realist on 08.16.19 at 9:26 pm

In response to Howard yesterday –

“Spoken like a true, myopic, navel-gazing, entitled, narcissistic Millennial. – Garth”

Wow. Wow. Wow.

And Garth, you and others keep saying the hate is coming from us.

Look at what you are spewing.

Lolololololol!

We are taking over, Paleos.

Buy some extra diapers. You’re gonna need them :)

I may have missed an adjective. – Garth

#34 Figmund Sreud on 08.16.19 at 9:28 pm

Putin’s insane nuke-in-a-missile explosion
________________________

Ah, … yes! “Shirt” happens when one fiddles – insanely – with nuclear weapons. Think the Strategic Air Command facility of Little Rock Air Force Base, September 18, 1980, … oh, about 6:30 p.m., for example. Book that describes it, amongst other accidents, … review of it:

https://books.google.ca/books/about/Command_and_Control.html?id=H0-CJckES44C&printsec=frontcover&source=kp_read_button&redir_esc=y

Happy nightmares!

F.S. – Calgary, Alberta.

#35 ImGonnaBeSick on 08.16.19 at 9:39 pm

#21 Bytor the Snow Dog on 08.16.19 at 7:20 pm
#118 Sold Out on 08.16.19 at 10:40 am sez:
#115 Bytor the Snow Dog

“We can do this all day…”

“I have provided citations supporting both the factual and contextual accuracy of my original statement. You have provided your unsupported opinion.”
———————————
You have provided exactly SFA. What you have done is to move the goal posts, repeatedly. You have provided zero proof that small mammals live longer than large ones.

In the interests of keeping Garth’s blog free of off topic BS, you have a nice day now.

————————-

You two idiots get the prize for the dumbest argument I’ve ever read in the comments section… I think you both have eaten too much sugar cereal. I love it! Please keep it up.

#36 Sean John on 08.16.19 at 9:40 pm

“If you hate your children, get a reverse mortgage.”

What if you are childfree and do not care about what is left behind?

Get a HELOC. Interest-only payments. – Garth

#37 Sail Away on 08.16.19 at 9:40 pm

#31 Flop… on 08.16.19 at 9:11 pm

To the newbies chiming in that it’s no big deal using the Boom handle, I have some homework for you.

—————————————

The Boom is dead! Long live The Boom!

Nobody gets out alive, my friend. Your loyalty is touching, but trying to ban others from using the blog handle ‘Boom’ is a bit much.

#38 Easy Riding on 08.16.19 at 10:40 pm

#35 ImGonnaBeSick on 08.16.19 at 9:39 pm

#21 Bytor the Snow Dog on 08.16.19 at 7:20 pm
#118 Sold Out on 08.16.19 at 10:40 am sez:
#115 Bytor the Snow Dog

“We can do this all day…”

“I have provided citations supporting both the factual and contextual accuracy of my original statement. You have provided your unsupported opinion.”
———————————
You have provided exactly SFA. What you have done is to move the goal posts, repeatedly. You have provided zero proof that small mammals live longer than large ones.

In the interests of keeping Garth’s blog free of off topic BS, you have a nice day now.

————————-

You two idiots get the prize for the dumbest argument I’ve ever read in the comments section… I think you both have eaten too much sugar cereal. I love it! Please keep it up.
……..

Irrespective of size or lifespan all mammals have about the same numbers of heartbeats…….. about 3.5 billion…. make the most of each one.

#39 Easy Riding on 08.16.19 at 10:46 pm

Let the beat ride on……….

https://www.researchgate.net/profile/Weiguo_Zhang6/publication/23486438/figure/fig2/AS:[email protected]/Total-heartbeats-over-a-lifetime-of-15-mammal-species-The-results-all-fall-in-a.png

#40 crowdedelevatorfartz on 08.16.19 at 11:15 pm

@#35 Imgonnabesick
(I must admit …Im a little jealous over your nom de plume)

“I think you both have eaten too much sugar cereal. I love it! Please keep it up.”
+++++

I believe the sugary crap is called “Froot Loops”

#41 Long-Time Lurker on 08.16.19 at 11:17 pm

#17 30MLeftCoad on 08.16.19 at 6:44 pm

Hi Garth,
Been reading your blog for a few years, thank you so much for all the free financial advice.

I’m at a dilemma here, I have ~7.5k federal student loans @ prime + 2.5%, 15k car loan @ 0%, 25k total in rrsp + tfsa and another 25k in my corporation’s balanced diversified ETF investments.

I am an incorporated contractor making ~150k, drawing dividends only from the corp every month, and a renter.

Should I:
1) draw from tfsa and pay off as much debt as possible, or
2) draw everything from the corp every month, and pay off debts asap (student loans, then car)
3) just pay the minimum payment for both loans, and allocate everything leftover in corp to corp investment?….

>#4. Pay off the student loans: (3.95% + 2.5% = 6.45% interest). Stuff the TFSA & RRSP: tax-free growth. Pay off the car loan slowly but eventually: (0% interest). Invest the remainder.

>#5. Thank Garth for providing this forum.

(Thank you, Garth, for continuing your blog!)

#93 Smoking Man on 08.16.19 at 1:20 am
So I got my rejection letter from the life insurance company. Blood tests are evil..

I knew that was coming along.. I taught the wife how to murder forex trading. 400 to 1 margin.

She is up to 800k since Mar 18..

>I took notes on your Forex advice, Smokey. I might use it someday. No need to add more. You already gave the gist of it.

Flop’s woes: Enjoy the summer, Flop!

Yesterday’s comments were weirder than usual. (Which says a lot.)

Stand tall on your wallet: Garth gave you The Greater Fool decoder ring.

#42 crowdedelevatorfartz on 08.16.19 at 11:17 pm

@#37 Sail away

Boom had a LOT of good things to say….and….unlike me…..he was a gentleman.

#43 Westcdn on 08.16.19 at 11:25 pm

Well, JE pulled the pin and I am shifting through the rubble. The dividend cut hurt more than I was expecting. But, then there are preferred’s where I see value if the current management team can be trusted. So far, I am not impressed. Still a good business is you can manage it right. Let’s see what happens with VET.

Being a DYI investor of individual stocks means you own your decisions. Being right all the time only exists in your mind – there are more important things. Anyway I expect to recover – to me that is what life is about, learning or paying back Karmic debt… My belief.

#44 acdel on 08.16.19 at 11:25 pm

#10 45north

I am in utter disbelief on how anybody can defend this guy; like many others including myself felt that for one he is not a liberal and two he was never (or ever will be) ready for the P.M. position as long as his first love is Quebec and far left,communism (loves China) ideals! Sorry Garth your blog probably just got hit because I included China……

There is absolutely no reason as to why Canada is not booming right now…… Suckers!!! :)

#45 PastThePeak on 08.17.19 at 12:01 am

#33 Millennial Realist on 08.16.19 at 9:26 pm
In response to Howard yesterday –

“Spoken like a true, myopic, navel-gazing, entitled, narcissistic Millennial. – Garth”

Wow. Wow. Wow.

And Garth, you and others keep saying the hate is coming from us.

Look at what you are spewing.

Lolololololol!

We are taking over, Paleos.

Buy some extra diapers. You’re gonna need them :)

I may have missed an adjective. – Garth
+++++++++++++++++++++++++++++++++++++

Have you moved out of Mom’s basement yet? If so, I assume you are now spending most of your time figuring out how to retire early. Get that $1M portfolio and live on $40K for the rest of your life.

Doesn’t sound like a generation taking the reigns of power…

Now be a good boy and fetch a coffee for your Gen X boss, and then open the door for the Gen Z up-and-comer that will be your next boss…

#46 Paul on 08.17.19 at 12:44 am

Re: #26 crowdedelevatorfartz on 08.16.19 at 7:42 pm
@#16 Shawn Allen

Great comment. I remember well all of the SNC Lavalin Libyan stories. The Globe and Mail did some excellent work uncovering the depth of the corruption at the time.

Trudeau has lost the moral authority to govern. Full disclosure – I voted Liberal because Harper had lost the same. Next.

#47 Smoking Man on 08.17.19 at 1:11 am

DELETED

#48 Nonplused on 08.17.19 at 1:21 am

#19 Howard

Animals do not consume things that are properly landfilled. Your argument assumes problems that do not exist.

And yes I mostly use reusable straws, especially at home. But this is not always convenient.

#10 45north

Conrad Black is just talking his book and also wants to escape prosecution for nefarious deeds. Criminals always think what other criminals are doing is ok by them.

No great wealth comes without some level of criminal activity. Ever. Even Bill Gates had to steal his operating system from someone else and then get a government contract to get where he did.

There are only two secrets to great wealth. One, leverage. Two, government contracts. Hardly anything else can do it. Ya sure you can make good wealth other ways, but if you want a yacht sell things to the government.

#49 Smoking Man on 08.17.19 at 1:23 am

Responsible’ , the most epic word that kills fun. I hate it.

Got rejected after the blood work for a life insurance policy. I did it for the wife before I taught the bitch how to trade forex.

She dont need me anymore. I’m happy about that..

#50 Smoking Man on 08.17.19 at 2:17 am

Afraid to play dodge ball. Risk avoidance is heaven to these freaks.. Being scared is the land of the devil.

Teachers are evil..

They never experienced risk. shit boring way to live.

Get the children to fight their war, because they are cowards , summers off and big ass pension is the making it prise.

They have no clue of the power of 400 to 1 margin..

#51 Smoking Man on 08.17.19 at 2:49 am

When you figure out living in a city sucks.

https://youtu.be/fuZyMx2NXZM

#52 Dolce Vita on 08.17.19 at 4:49 am

#37 Sail Away

I’m torn on this tenterhook issue.

-They retire hockey numbers for a team.

or

-Just add Jr. at the end (Boom Jr.) indicating youth and some type of progeny.

—————————————-

#26 crowdedelevatorfartz

Nice hack job of SNC-Lavlin…and I agree with what you said.

-Corporate Felon.

-PM Felon.

Birds of a feather…

#53 Camille on 08.17.19 at 6:52 am

Someone should answer Linda’s question? Its worth a proper answer.

#54 Jen on 08.17.19 at 7:31 am

I am going to disagree with Garth and agree with Katherine on OSAP. It is free money so long as she pays it back within 6 months of graduation. There is a chance a significant portion will be forgiven or converted into a frant meaning it will be actually free money.

Gartb always recommends having a LOC for emergencies. For a student making no money, I’d say taking out OSAP to invest is also a way of having an emergency fun.

You get a tax credit for interest you pay on a student loan. You don’t for a bank LOC. Also something I didn’t think of while I was a student was the Repayment Assistance Program. I graduated in 2011 and the first i years of my career were extremely difficult. I was fired from my first job which I hated. Then after worked 3 different contracts trying to transition to a new area. In total I have a 3 period of unemployment that total 13 months. During each period of unemployment, I got repayment assistance, which meant the government paid the interest on my loan. Unemployment sucked and it was a small consolation to me that my interest was being paid by public money. During the first job I hated, I managed to pay down signifcant portion of OSAP. After I ggot fired I made monthly payments and put as much into TFSA as possible. Having 6 months to 1 year of living expenses in my TFSA made unemployment less stressful. With that cushion, I had the liberty of not settling for an unsuitable job. Anyhow, happy ending to my story. I have been working at a job I absolutely love in a field I am really passionate about. Feels amazing after 4 years of a job I loathed in an area I hated. 3 years of contract jobs which were tolerable. Precarious employment caused be to be an extreme saver. Now that I finally make 6 figures, I have been managing to save 60% of my income each month.

I would recommend that she put her OSAP in a TFSA. Using something simple like TD E-series or Tangerine low fee mutual funds with a 60:40 ratio as recommended on this blog.

#55 Tony on 08.17.19 at 8:05 am

Earnings in America have been falling since 2014 and stock buybacks will just bankrupt corporations who paid 6 to 10 times the actual real value of their company. The bankers at some point in time certainly don’t want to be left holding the bag with not a single buyer at any price. Anytime to invest is very bad advice.

#56 Howard on 08.17.19 at 8:19 am

#48 Nonplused on 08.17.19 at 1:21 am
#19 Howard

Animals do not consume things that are properly landfilled. Your argument assumes problems that do not exist.

———————————————

Problem doesn’t exist? Every single piece of plastic trash in Canada makes it to landfills ensuring no birds end up like this?

https://www.thesun.co.uk/news/6258676/midway-island-pacific-ocean-albatross-documentary-plastic-pollution/

Canada had been shipping its plastic waste to Asia. That option is now closing. You think our landfills can adequately process this extra volume? Might it not be wise to promote a reduction in single use waste?

https://globalnews.ca/news/5324429/malaysia-ship-back-plastic-waste-canada/

#57 Tony on 08.17.19 at 8:28 am

Re: #15 Howard on 08.16.19 at 6:34 pm

Zombie companies or zombie corporations are the wrong thing to be holding or buying into even with falling interest rates.

#58 CHARLES SCALING on 08.17.19 at 8:37 am

Dear Garth, I love the down to earth adevice you give us in your “PAThETIC” BLOG.
Thanks a lot, Chaŕles

#59 Sail Away on 08.17.19 at 8:54 am

#53 Camille on 08.17.19 at 6:52 am

Someone should answer Linda’s question? Its worth a proper answer.

——————————

Linda could answer her own question with four seconds of googling. Short answer is that lenders will never loan more than a percentage of property value.

#60 In dubio on 08.17.19 at 11:02 am

Hi Garth,

Fist time poster here, and I have a question that’s slightly off topic…

I’m a long-time renter but this might change as I’m thinking of buying a land lot near Calgary and then building a house. Recently I viewed one property that got me interested. The Seller has a realtor and I’m wondering if I need to retain a realtor too…. or do I just need a lawyer to handle the paperwork?

Thank you,

Always have an agent – it costs you nothing. But it might be too late since you already utilized the listing agent, presumably without saying you would have representation. – Garth

#61 Life Insurance on 08.17.19 at 11:16 am

Why does the Smoker need life insurance with all the $millions he proclaims to have made? Instead of crying about his blood test, why not establish a Trust Fund for his wife instead?

#62 Ronaldo on 08.17.19 at 11:55 am

It’s Over. Reminded me of this song by the great Roy Orbison.

https://www.youtube.com/watch?v=h9JArvEJ64M

#63 Spectacle on 08.17.19 at 12:14 pm

#26 crowdedelevatorfartz on 08.16.19 at 7:42 pm
@#16 Shawn Allen

Re ; Lord exConvict Black’s comment re SNC Lavalin
“the desirability of retaining in Canada such a sophisticated international engineering company…”
+++++

I think I’d want to see if Lord Black owned multiples of shares in SNC when he made that statement.

Also.
The issue with SNc isnt their Engineering expertice ( the Canadian Association of Professional Eng’s sees to that)

It’s how SNC “won” bids in foreign and domestic contracts.

SNC was BANNED for 10 years by the World Bank for its acknowledged corruption in winning foreign contracts funded by the World Bank back in 2013.

https://www.cbc.ca/news/business/snc-lavalin-agrees-to-10-year-ban-from-world-bank-projects-1.1316719

SNC employees also “won” contracts in Quebec that smelled worse than rotten poutine on a Montreal sidewalk in August…..

https://www.cbc.ca/news/canada/montreal/snc-lavalin-ceo-guilty-fraud-pierre-duhaime-1.5001839

But the straw that finally broke the Camel’s back was when SNC used a subcontracted employee to spirit Libya’s former dictator’s family and millions in stolen loot….”out of Africa”.
Stopped in Mexico City on a private jet with Canadian Passports ……chartered by……..

https://www.cbc.ca/news/canada/cyndy-vanier-sues-snc-lavalin-for-15m-over-mexico-jail-ordeal-1.3227639

Apparently the USA had enough and decided that having Khaddafi in Montreal was a bit too close for comfort and too much to stomach…..
SNC Montreal HQ raided by the RCMP with the FBI watching in the wings…..

https://www.thestar.com/news/canada/2012/04/13/rcmp_raids_snclavalins_montreal_headquarters.html

Nice.

I could go on providing link after link after link ad nauseum but…according to our intrepid (insipid) Prime Minister, “Its about jobs!”

Please….
Campaign contributions and votes would be more accurate…….

Anyone that suffered through BC Premier Christy Clark’s vapid, inane, repetitive, election drivel will suffer deja vu….

As a former SNC employee that quit in disgust BEFORE all this merde hit the fan……….

I intend to vote Conservative in the next election to send the Rot at the top a message…

“We’re as mad as hell and not going to take it anymore…”
————————– Thanks Guys —————

Greatly appreciate Your input on this Canadian Political matter.

Some of us blog dogs really appreciate the contributions on here, only so much time in a day to research news. Must be others who feel the same as me?

Please keep up your current affairs posts , big reason to visit Sir Turners blog is exactly the social/financial heads up we get !

Ps: beyond wow that jt fancy socks , lying narcisit, (insert Garths deleted word choice…) is not removed from office yet !

Thanks Garth

#64 Confusions on 08.17.19 at 12:22 pm

“We are 25 and 28 years old, have 7k credit card debt,”, ” to pay off the student loans? “, “pay off a large chunk of the loans since my interest alone is significantly higher “. Pay of the credit card debt first if high interest cost is a worry.

#65 Billy on 08.17.19 at 12:37 pm

#24 Linda: You get a lump sum and then the high interest on the loan runs (with no payments) until you die or sell the house (i.e. you get tied to the house in old age). The house is their collateral and if payback is upon death, the Estate must then pay the loan back (up to the value of the house at that time).

https://retirehappy.ca/the-pros-and-cons-of-a-reverse-mortgage/

#66 TalkingPie on 08.17.19 at 1:06 pm

What kind of financial dunce carries $7,000 in credit card debt at probably near 20% while there’s money on hand to pay it off?

#67 crowdedelevatorfartz on 08.17.19 at 1:23 pm

Lets also not forget SNC’s contracts in dictatorships such as Venezuela……..

https://www.theglobeandmail.com/report-on-business/snc-lavalin-wins-597-million-irrigation-contract-in-venezuela/article18445131/

https://www.on-sitemag.com/construction/snc-lavalin-signs-133-million-contract-with-petroleos-de-venezuela-s-a/1001004436/

Aaaannd
More contracts in

Those bastions of press freedom and democracy……

https://www.offshoreenergytoday.com/snc-lavalin-bags-5-year-engineering-agreement-in-saudi-arabia/

To our own backyard……

https://globalnews.ca/news/5002702/snc-lavalin-federal-contracts/

https://dogwoodbc.ca/news/snc-lavalin-contracts-bc/

The SNC sales staff have been busy busy busy.

#68 SoggyShorts on 08.17.19 at 2:00 pm

#45 PastThePeak on 08.17.19 at 12:01 am
#33 Millennial Realist on 08.16.19 at 9:26 pm


Now be a good boy and fetch a coffee for your Gen X boss, and then open the door for the Gen Z up-and-comer that will be your next boss…

****************
Hahahaha actually made me laugh out loud, thanks!

MR is the one who’s always signing off “We’re not joking, boomers are screwed when we take over”, right?

#69 SNC on 08.17.19 at 2:37 pm

I would be honoured to add more links, and context about SNC involving potential corruption. Its not that I am lazy or a bad typist, but wish to live a little bit longer.

#70 Bill Puffle on 08.17.19 at 2:48 pm

Back when I was younger and had some credit card debt, I was able to do balance transfers and pay a 2% annualized interest rate.

The promotion that I had was that you get charged a 1% fee to balance transfer, then you get a 1% interest rate for one year. After one year, the interest goes up to 20%. If you miss a payment, it goes up to 20%. So I just set up an automatic payment so I never missed a payment.

At the end of the year, you take a cash advance from your original credit card to pay off your full balance, then do another balance transfer the next day back to the card again. So you only pay like 1 day of interest on your cash advance which is basically nothing.

It was pretty amazing because I was getting better interest rates using my credit cards than people who were taking out HELOCs or consolidating their debt into their mortgage.

This is a really good strategy for people who are trying to get out of credit card debt, because you’re paying hardly any interest and it gives you the time to work your way out of the debt without it compounding at 20%.

The last time I did it, I got 0% interest for 6 months with a 1% balance transfer fee, so still basically 2% annualized interest. That’s an amazing rate for someone with bad credit an no other assets.

Thankfully, I’m no longer in that situation, but those balance transfer promotions really helped me a lot back then.

I remember I signed up for the card when I was at a Leafs game, and I only signed up for the card to get a free t-shirt. I wasn’t planning on actually using the card until I discovered that promotion on it. I’m pretty sure you could just make up whatever income you want when signing up for the card, they didn’t seem to care. They gave me like a $20,000+ limit.

#71 Barb on 08.17.19 at 2:50 pm

#26 crowdedelevatorfartz on 08.16.19 at 7:42 pm
——————————–
I intend to vote Conservative in the next election to send the Rot at the top a message…
“We’re as mad as hell and not going to take it anymore…”

My sentiments exactly.
So sick of Liberals kowtowing to Quebec, as though they don’t already receive preferential treatment vs the rest of the country.

Years ago on a business trip to Montreal, I recall being stunned by the sheer number of “another Federal project” sign depicting construction of light manufacturing malls/complexes…often right down the roads from complexes that were empty but no more than 10 years old, with 3-foot tall weeds poking through parking areas, all with signs “A Louer”.

Quebec appears to never be satisfied with what they receive. More, more, more…

#72 Edward Bear on 08.17.19 at 3:34 pm

Jill, be brutally honest with your finances. I was once advised not to seriously count home equity as part of your net worth. It is a subjective figure until the buyer’s chequie clears the bank. SF houses here in the Cow dropped about 30K over the last year. Banking on how much your salaries will be four years out is optimistic but not altogether wise. Over time, your partner is likely to have a more stable run given what he does and his being in the public sector. After forty years of oil industry booms and busts, feast and famine, t-bones and tube steak, my crystal ball still doesn’t work worth a hoot. Operating companies and oil and gas service companies have developed a bad habit of dropping excess staff like a bad habit. Governments, societal whims and geopolitics can throw a curve at us. Plan for the worst and hope for the best. Boeing used to to carefully do that when designing items that fly; then they got cocky, listened to some wet behind the ears MBA’s, began assuming too many things and are now right betwixt the glue pot and the manure pit. The Prophet Garth hath spake the gospel. You will do okay in the end but gloomy old preachers like us have seen and heard a few things; and once burned twice shy. All the best.

#73 oh bouy on 08.17.19 at 3:55 pm

#45 PastThePeak on 08.17.19 at 12:01 am
#33 Millennial Realist on 08.16.19 at 9:26 pm
In response to Howard yesterday –

“Spoken like a true, myopic, navel-gazing, entitled, narcissistic Millennial. – Garth”

Wow. Wow. Wow.

And Garth, you and others keep saying the hate is coming from us.

Look at what you are spewing.

Lolololololol!

We are taking over, Paleos.

Buy some extra diapers. You’re gonna need them :)

I may have missed an adjective. – Garth
+++++++++++++++++++++++++++++++++++++

Have you moved out of Mom’s basement yet? If so, I assume you are now spending most of your time figuring out how to retire early. Get that $1M portfolio and live on $40K for the rest of your life.

Doesn’t sound like a generation taking the reigns of power…

Now be a good boy and fetch a coffee for your Gen X boss, and then open the door for the Gen Z up-and-comer that will be your next boss…
________________________________

Truly sad how you people talk to each other.

#74 DON on 08.17.19 at 6:09 pm

#42 crowdedelevatorfartz on 08.16.19 at 11:17 pm

@#37 Sail away

Boom had a LOT of good things to say….and….unlike me…..he was a gentleman.

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

We retire the numbers of retired hockey players…why shouldn’t we retire the blog handle of a sensible, reasonable gentleman.