Why

@duckwords photo

One more sleep to the big vote. But let’s ignore that. Enough is enough. We’ll get the country we deserve.

But will we get the blog we deserve? That’s the question.

Truth be told, you haven’t impressed me lately. At least the 1% of visitors who leave a comment. Over the last few days, they have sucked. The IQ of this site seems to erode every time the testosterone level rises. That usually happens when we talk about investing.

Most have a profoundly unhealthy relationship with money. It destroys relationships. It turns us ugly and competitive. It flips prudence into risk. People let it define them – how much they earn, possess or how smart they are with it. Investing becomes a contest to be won. Amateurs believe performance is the sole measure of success. Some learn the truth. Many fail first.

In recent days this blog has offered advice, backed by research and history on proven ways to organize, keep and grow wealth. That included contributions by me and two of my colleagues – one a career Bay Street analyst and pro portfolio manager, the other a former v-p with two major banks, including RBC’s capital markets unit on Wall Street. With success, they look after families across the nation. In response, a bunch of DIY cowboys showed up here to insult them.

Makes me wonder. Why do we bother?

You’re familiar with your own accounts or maybe what you BIL owns. In contrast, I see and analyze hundreds of portfolios a year, plus interview the people behind them. I do not manage millions of dollars. Or tens of millions. People have entrusted me with hundreds of millions. And they all have the same two goals. Don’t lose money. Make a reasonable return. Unspoken but understood is the third goal: take care of me.

The wisdom and training I and my colleagues have garnered is distilled and presented to you, gratis. Seven days a week. At least for now.

There’s a reason I preach balance, diversification and liquidity. For almost everyone, it works. It’s the only thing that works, consistently, decade after decade – because people are not algos. They allow a myriad of factors to influence how they deal with money. Most of those are unhelpful.

Why do people fail?

They make emotional decisions. A marriage. Job loss. A baby. Divorce. All these things flood the brain with emotion and lead to kneejerk decisions.

People fail because they consistently acquire assets out of greed (because they’re going up, like houses or gold), and they bail out on fear (like stocks going down). Buy high and sell low is the norm.

We fail because of where we get information. From family or parents – people with zero training, unable to admit mistakes. Or, worse, Mr. Google. The online world teems with sites full of self-serving, sales-oriented, attention-seeking crap.

People fail when they trust [email protected] or a 22-year-old ‘advisor’ with a mutual fund license to give them life or retirement advice. These folks are salespeople.

Failure also comes because of recency bias. The comment section swims in it. People think recent events dictate all events to come, like interest rates will never rise again or real estate values never fall. History is littered with the bones of such believers.

Most people don’t know how they’re taxed, or how to minimize it. Interest, dividends, rent, capital gains, employment income – they are treated unequally. Registered and non-registered accounts. Self-employment cash flow. Income-splitting between spouses or in a family. Commuted pensions. Return of capital retirement income. Trusts. Deductible interest. Probate. IPPs or what kind of insurance to buy.

We fail because we think short-term. Yearly performance is the cowboy preoccupation, instead of achieving life goals – a house, schooling kids or retiring securely. We exaggerate current events, believing we live in a time of unusual turmoil or unprecedented conditions. But we don’t. It’s not different this time. Your life isn’t that special.

Investing is not gambling. Genius isn’t measured in 12-month performance. Reaching for outsized performance involves unwarranted risk. Most people fail when they base decisions on feelings, perceptions and wants. We’ve allowed money to become so personal and defining that husbands and wives will share a bed and offspring and yet not an investment account. Despite being an economic unit, they work at utter cross-purposes.

Wealth’s greatest gift is to enhance time. Erase stress. Grant security. Let you savour each day.

That is the goal. Visiting a blog to brag and fight is, well, sad.

234 comments ↓

#1 nlabixa on 10.20.19 at 11:17 am

first one more time. what matters are balance and diversity

#2 Larry B on 10.20.19 at 11:19 am

It is tough to “scream” at the masses and hear nothing in return. People are controlled by their basic instincts and are manipulated by the “hustlers” to their detriment. It seems so simple, live below your means and invest in a diversified and balanced portfolio. But greed, fear, jealousy and avarice consume us. I have fought for sanity and warned others about their fiscal futures only to be scoffed at. Well, I repeat your premise, Why do we bother? Let the masses decide the Government we deserve and if they choose poorly, I’ll just stop trying and let the people live the consequences. Perhaps Garth, it is time for you to consider doing the same?

#3 Bob Dog on 10.20.19 at 11:23 am

Crowd at Conservative rally in Ontario chanted ‘lock him up’ when Scheer mentioned Trudeau

https://apple.news/A2PHzM7CDQJubVkQqLurR0w

A republican is a republican:

Updating my resume today. If I’m going to live in America jr I may as well live in the real America and get pain in real dollars

#4 Paddy on 10.20.19 at 11:31 am

It was me and my 100% equity “cowboy” portfolio that spurred you on….sorry Garth

#5 David on 10.20.19 at 11:33 am

I’m fine with whatever happens tomorrow. If Trudeau/Singh win I may benefit from some of their programs and won’t live long enough to pay for them. If Scheer wins I’ll get to keep more of my money.

#6 Robert Ash on 10.20.19 at 11:50 am

I haven’t been here that long, but I have noticed there has been a deterioration of some of the comments, that while interesting, are not really on topic… I have benefited by reading the Blog, and especially like the Links, to salient Financial topics…. On a lighter note… Climate concerned folks, … the UN predicts a decline in Global population, starting about 2050, and should level out at 8.1 Billion people….. this is an important demographic, as the Planet will be considerably less stressed… You can vote knowing that there is hope for the Planet, after 4 billion years…

#7 Marcus on 10.20.19 at 11:59 am

You tell us to “Go away” and then wonder why your comments decrease in volume and quality. Pretty funny. There are those of us who are very well off and invest in many different ways. ie multi-national. Your approach to people at times is influenced by your politics. I guess that is how it is with all people. One thing is for sure ….. Canada will indeed “get the country they deserve” tomorrow. Sadly it will not work out well for Canadians in the end.

#8 Peter on 10.20.19 at 12:05 pm

Garth this is not a comment on your writing or advise in anyway. I hope you continue. But maybe to eliminate the comments section noise you should consider writing less, maybe a Tuesday/Thursday Scheduled with one weekend post from your PF Managers.

Most other blogs don’t get as many comments per post and I think that is because first you have a bigger audience but also the daily posting creates the atmosphere of people (the wrong ones) coming every day to argue. Maybe a less frequent schedule will allow you to enjoy writing more and the delay between posts will deter the types of commentators you want to eliminate.

Just a thought.

#9 baloney Sandwitch on 10.20.19 at 12:13 pm

Garth, I really appreciate the financial wisdom you share so generously, especially holding steady in turbulent time. Looks like the cons are resurgent. The pickings this election are slim. The candidates uninspiring. I have voted Liberal even though I am a registered con member. I think the world is teetering on the abyss of uncontrolled climate change. The cons pretend that it does not exist. I hate that attitude.

#10 NoName on 10.20.19 at 12:17 pm

@ Gravy Train

I just downloaded free excel sped sheet (gov web) PV generating index for Canadian city, it an averages 6kwh/m2 all year around for sun tracking setup.

Funny thing is according to the lets call it “muni-PV-index”, is that most generation with PV and tracking setup is in, wait for it, in may @ Eureka Nunavut.

So my question to you is would you share with us power generating numbers for hole year, what kind of setup you have / pv-surface and province?

Here is a link to spredsheets
https://www.nrcan.gc.ca/18366

#11 cultural elitist on 10.20.19 at 12:21 pm

Really appreciate what you do online Garth – it’s made a material difference to my finances.

There should be more voices like yours on the Internet, but I understand why people don’t want to engage. Apparently there are only a small number of intrepid souls who have the right combination of energy, expertise and body armor. So thanks for putting it all out there, and look after your mental health!

#12 just a dude on 10.20.19 at 12:22 pm

Garth, amen to all you’ve said on this latest great post.

I rarely post but will repeat what I’ve said in the past: I greatly value your and your colleagues’ perspectives and most certainly do not come here to read the comments. I also value people and relationships very much but I find it a waste of time to read the nonsense that people sometimes spew out (here or elsewhere), especially under the cloak of cowardly anonymity.

Technology has produced many great benefits but unfortunately, it has also given a voice to idiots with no shame, no class and no integrity.

I’m very grateful that you’ve kept up this great blog for free for so long. I would happily pay if you decided to (justifiably) go that route. If you do explore the payment option may I suggest that you please consider removing the comment section altogether or only allow people to post under their real names.

My 2 cents for what it’s worth, and again, thank you and your colleagues for all that you do. I have benefited greatly from your words and always interesting perspectives. You guys rock.

All the best

#13 A reader on 10.20.19 at 12:26 pm

Hey Garth,

Found your blog maybe 2 years ago, when I was researching real estate in Victoria, BC.

We are actually cat people. But the dog pictures are quite fun, so it’s all good.

This is my first comment here, because it was past time to say a simple, sincere “thank you”.

Your blog is interesting, informative and well-written. A real public service in the spirit of helping others.

I hope it will continue! But it would also be understandable if negativity drove you away. (So play nice, people!)

As for comments getting nastier, my theory would blame the overlapping election cycles. (Canada & US…maybe even Brexit?) That stuff tends to whip emotions into an overly-negative state.

There’s plenty to be mad about, and not much control over the outcome. A recipe for short tempers.

Here’s hoping readers can take a deep breath, get a grip, and remember the social/political noise is secondary to staying grounded in one’s own life & outlook.

“It is better to light a candle than to curse the darkness”

#14 Russ on 10.20.19 at 12:29 pm

Hi Garth, et al.

Since we’re attempting to get back some state of to decorum I will avoid climate & politics discussions today.

I have a basic question in RRIFs.
Is there any good reason at all for setting one up before required (age of 72…)?

At the last review with our advisor I mentioned retirement to be on track for sooner than later and before the age of 65. He said that is when we’ll set up a RRIF. No discussion about RRIFs followed that as I’d like more info before moving along that path.

Cheers, R

#15 SoggyShorts on 10.20.19 at 12:41 pm

It’s not a stretch to say this blog changed my life.
The major lessons I learned are things that everyone could/should benefit from:

1. Diversification (ETFs > Stocks for 9x% of people)
2. The market has stupid moments, you shouldn’t. (brexit, Q4 2018 etc)
3. Advisor fees over 1% are too high. (and for that you should get more than a yearly rebalancing)
4. Renting>Owning (factoring in the TRUE cost of ownership means most landlords are subsidizing renters and the whole “Throwing away money on someone else’s mortgage” is BS)
5. Smaller but also important technical stuff (TFSA successor holder etc)

Honestly, these are things that we should have learned in high school, but maybe just as most ignored the “magic of compounding” lesson this wouldn’t have sunk in then either.

I hope you keep it up Garth. For those who have yet to come here and learn those lessons and also for those of us who really appreciate the calming effect of your “steady on” message while the MSM has been yelling “FIRE!” 24/7 for what feels like forever.

#16 paul on 10.20.19 at 12:46 pm

I don’t get it, the Mounties are investigating election signs in the Okanagan are being painted with blackface(not good) on Trudeau. As racist and maybe be a hate crime.
Justin wears BLACKFACE and he is the Prime Minister.
Oh Canada?

#17 Fluorine on 10.20.19 at 12:50 pm

The 99% of us who read, absorb, and are grateful but very rarely comment are the reason you do this.

The info you and your companions have shared is invaluable and entertaining, but I rarely feel the need to add anything to the conversation. I used to read all the comments, but now I just scan for italicized text, and interesting links. Most of it is sludge.

I had a question about preferreds once, and why their distributions drop over time, and it was quickly answered by Ryan or Doug with a bonus helpful link (prefblog.com)!

Please continue what you do, and like the Extinction Revolution or the yellow vest people, please don’t assume the vocal majority represents us in any meaningful way whatsoever. We chose to sell our dead-end rental condo, liberate almost a half a million from [email protected] and invest with you, based on your sage advice, so please understand you have having a profound effect on the silent majority.

~Flu

#18 Sail Away on 10.20.19 at 1:05 pm

Often the most outspoken give the least valuable input. That might include me? Not sure…

I find predictions very telling, so track them all through spreadsheets tracking portfolios and allocation suggestions. The ‘Greater Fool’ portfolio does ok. REITs touted by Doug Rowlands in May are up 7% plus dividends. Preferred shares continue to have value. It completely and deliberately missed the ball on gold this year, but everyone has biases.

You give good advice here. Nothing groundbreaking and quite conservative. Your readership seems to have the demographics of a Rotary club. This blog is a comfortable easy chair in front of the fireplace with a little curmudgeonly-ness at most.

My investing style is edgier, yielding a number of bankruptcies and also some excellent multiples, and is closer to early Buffett’s value strategy. I like to discuss these in detail, including mistakes made, but the few times I’ve posted numbers showing your suggestions may have missed the ball, the comments don’t appear.

Fair enough. It’s your blog. But it does restrict the conversation.

#19 Grateful in Victoria on 10.20.19 at 1:06 pm

Garth,

About 9 years ago as I was preparing for retirement, I took out about 16 books from the library on investing, over the course of a year. Your book was one of them.
I thought this seems right but I would sure like those triple baggers that my BIL and a friend brags about.

I stayed with your advice. My husband and I have a very comfortable retirement and sleep well at night.
My BIL does not have enough left for a comfortable retirement and my other triple bagger friend lost most of it and what he has left is in cash. He is still looking for contracts at 65 to keep them afloat.

So while I am balanced and generally follow the advice now, I do like coming here. I found yesterday’s blog by Doug the best so far this month. I don’t read the comments because most are just too ignorant for me.

So this is a thank you. I just hope you keep on going for the intelligent people who have the decency to appreciate what is free and valuable.

#20 Andrewski on 10.20.19 at 1:16 pm

Has healthy discourse devolved in to simply disparaging those who’s opinions we don’t agree with? I remain hopeful that that’s not the case. When I read a comment on this or any blog I read that allows comments and it goes straight to personal attacks, I wonder why the poster is so mad.
I’m proud to say that my better half & I, as well as our 22 year old son are all doing are civic duty tomorrow and working at a polling station. Voting is so important. For those who choose not to vote, never complain about the government, just complain about the weather.

#21 greyhound on 10.20.19 at 1:22 pm

Today’s post reminds me yet again why I keep coming here. Thanks.

#22 Cici on 10.20.19 at 1:22 pm

Thank God I haven’t read much of the comments section lately.

And thank God again for the kindness, patience and generosity offered up here by Garth and his gang.

Oftentimes the only clear voices in a sea of relentless Internet babble.

#23 kothar on 10.20.19 at 1:22 pm

We put money today in a RRSP so that down the road in retirement we are not working and hopefully to be in a lower tax bracket. Or to use it when there is job loss or for spouse on maternity leave. For me it is for retirement income. With all the spending and debt to come, future taxes will have to go up to manage it. Why then hope that in the future during retirement, that my brackett will be lower. It looks as if it will be higher than now and govs then will be looking for every coin they can find. The TFSA will probably also become a target, and no longer be TF (tax free). The majority of the populace doesn’t use them or even if they do not correctly. So what is stopping a future gov from going after those that use them wisely now? The future majority would have no sympathy for those that were prudent now. Just as the NDP and very left feel that successful people now, just don’t pay enough. Even though marginal top rates are nearing 55% or more. There will be no end to the expectation of squeezing more and more out. The majority of voters that pay no taxes and rely on gov for everything don’t care, they just want to keep their programs going with more and more. More pharmacare, more daycare, more mail guy showing right up to your door day after day , etc etc. These social programs are needed, however you can’t expand them on and on forever without cost. People need to start planning now for those outcomes. The RRSP maybe come just a tax bomb, the TFSA may become a liability , capital gains inclusion will go up, these are probably inevitable.

#24 Tony on 10.20.19 at 1:27 pm

Great post Garth.

Your blog has taught me new ideas that through the force of their truth and reason I have embraced.

This has built trust, which has turned into my family having you and your team holding our future as we retire.

For every goof with a mittful of electrons commenting negatively and naively, there are many more of us who get it, and of them few ever comment.

#25 Sask to AB on 10.20.19 at 1:28 pm

Garth, you are an amazing Canadian, doing a wonderful public service by educating us. We are very grateful!
I agree with the poster above, that the election is very stressful, and has brought out the worst in some people. Don’t let the bastards get you down!

#26 So glad I sold on 10.20.19 at 1:33 pm

I definitely appreciate your blog, have been reading it the last 4 years. I used to invest with GIC’s (I’ll admit not smart but had been reading other fear mongering blogs and was afraid of a market crash. Finally met up again with my financial advisor mid December of last year. He’s like you, no weed stocks or gambling ones to make a quick buck and definitely no Bitcoin.

When my husband passed away suddenly 19 years ago, leaving me a widow at 52, my advisor suggested I transfer his pension in kind and that he would set up accounts for me ( one was a locked in RRSP and one was not). My other option would have been to take a pension of $1709 a month with the company. If I had died a month or so later, the company would have kept the balance. Long story short I have been getting an income from the RRSPs which have since been converted to a LIF.

Finally invested with my advisor as indicated and have an income stream quarterly with preferred stock, REITs, etc. as you recommend. That’s added to my municipal pension, CPP which is 1107 monthly and OAP, some of which is clawed back. But I don’t worry anymore and that way I’m not using the house proceeds, which can dwindle quickly.

I am renting in a purpose built 3 year old rental building, so no house upkeep or yard upkeep worries.

Garth keep those blogs coming. Because of your comments regarding investing responsibly and not investing with GIC’s which I used to do, my income stream has increased significantly.

#27 jess on 10.20.19 at 1:33 pm

http://www.oecd.org/daf/fin/private-pensions/Pension-Funds-in-Figures-2019.pdf

#28 Blair on 10.20.19 at 1:37 pm

Garth, Why don’t you pay more attention to people (like myself) who appreciate the highly professional work you and your guys do? I try to read some of the comments on here and I end up shaking my head; it leaves me wondering if the world is filled with angry and irrational people. But I would like to think that the majority are sensible reasonable people who are capable of appreciating good advice.

#29 Sold Out on 10.20.19 at 1:37 pm

Too many class clowns, not enough serious students of investing and wealth accumulation. People with interesting questions or ideas(and no interest in being mocked for their pursuit of knowledge, balance, and moderation) are likely deterred by the usual suspects that post nothing but personal insults and conspiracies. Not exactly enlightening company to keep. Perhaps it would’ve been different if politics were not a blog topic of discussion; I think it’s safe to say that moderates don’t broadcast their political views in comment sections, but extremist whackjobs can’t put the keyboard down. Short of sharpening the censor’s scalpel, I don’t know how to excise the rot.

#30 Renter's Revenge! on 10.20.19 at 1:38 pm

“The IQ of this site seems to erode every time the testosterone level rises.”

..and my Toxic Masculinity flares up, causing Cognitive Dissonance between that and my Trump Derangement Syndrome. I’ve already swallowed the Red Pill, become a Fapstronaut and followed the 12 Rules for Life. What else should I try? Self-Acceptance? Kombucha?

#31 Bob on 10.20.19 at 1:40 pm

“And they all have the same two goals. Don’t lose money. Make a reasonable return. Unspoken but understood is the third goal: take care of me.”

That’s all I ask for from my advisor…it took me a long time but I finally learned that greed is not all there is in life.

#32 Bob on 10.20.19 at 1:42 pm

Your blog….but maybe you should start censoring a little more the jokers (being polite)…

….maybe your blood pressure will go down some accordingly.

#33 Damifino on 10.20.19 at 1:43 pm

To me it’s simple: Stop deleting, start ghosting.

New Rule: If a comment offend thee, pluck it out

Should complaints follow, pluck them out too. In time, posters will either adjust, or else retreat to their own non-anonymous blogs.

I trust in Garth to tolerate civil debate.

Suggestion to posters: Post small, lest your 1500-word diatribe goes straight to the ether. And never assume you have a right to be published.

#34 Cooby on 10.20.19 at 1:44 pm

I read the blog daily, but now I rarely read the comments, and almost never leave a comment. That said, we’re at the end of an election campaign. On line comments are going to get stupid. They just are. About pretty much everything, it doesn’t necessarily have to be specific to the election or candidates. People feel uncertain about what even the very near future holds, and they start doubling down about how “right” their own POV is, and how “wrong” everyone else’s is. That’s my POV, anyway. And, of course, I’m right . . .

#35 Shawn Allen on 10.20.19 at 2:18 pm

The most disturbing comments?

Are those from people who write longs posts and don’t use paragraphs or put like 10 sentences per paragraphs.

This is deeply disturbing. I treat those comments as unreadable and always skip over them. Why write a comment that is so uninviting to read?

#36 Alberta Nomad on 10.20.19 at 2:23 pm

I appreciate the work this blog does everyday. Because of this blog, my investments — joint accounts galore with my wife — are mostly balanced and diversified. I still keep some individual stocks to remind me I am not Warren Buffett.

This blog is a diamond in an ocean of mud. Thank you for your efforts to make the world a better place.

#37 Back in Canada's Great Wen on 10.20.19 at 2:27 pm

A prophet may indeed be without honour in his own country, but don’t give up Garth. Promoting intelligent moderation when investing for the long run is always a worthwhile endeavour. I think the quality of the comments section has more to tell us about the quality of the commenters than about your writings. Too many commenters appear to use your blog as a message board to argue, or simply communicate, with each other. Perhaps you might consider blocking those offenders.

#38 jess on 10.20.19 at 2:30 pm

monkeys vs humans
https://www.livescience.com/monkeys-outsmart-humans.html

…”cognitive flexibility,or the ability to quickly change how they think about, and work to solve, a problem. Whereas monkeys can think on their feet, humans often become set in their ways and cling to inefficient strategies for problem solving, according to new research.

“The authors suggested that educational practices may make humans more likely to cling to one problem-solving strategy rather than looking for alternatives. “We don’t think this is necessarily the whole answer, but it’s certainly an aspect,” Watzek said. For example, the researchers noted that standardized testing and formal schooling in Western cultures “may encourage rote repetition and search for a single correct solution,” the researchers wrote in the paper.

#39 Back in Canada's Great Wen on 10.20.19 at 2:34 pm

…and limit posts to say 500 characters, maximum. Everything over that should be binned.

#40 Doug Franchese on 10.20.19 at 2:35 pm

I’m sorry Garth but from consumers to bankers to countries to corporations have gotten used to and expect low interest rates. The indebted is more than the savings or savers in the world.

Just like you said, you believe in balance, debt versus assets, savings, investments are way out of wack and this is why the masters of the world, you know who and what I am talking about will always keep the rates of interest in the world way down. This has happened for 10 years now and everyone thought it would not last. It did and continues daily.

#41 Steven Rowlandson on 10.20.19 at 2:39 pm

Except for advertising any books you might be writing Garth what does this blog do for you? Is it a way of expressing your frustrations, criticizing perceived stupidity, an attempt to educate the masses, expressing PC attitudes or is it a way of showing off somehow?
Surely no one is twisting your arm forcing you to have a blog.

It’s a gift. So behave. – Garth

#42 crowdedelevatorfartz on 10.20.19 at 2:43 pm

@#37 Lost but not leased

I was busy making LOTS of money this weekend that I intend to dump into my Balanced and Diversified investment portfolio……

Didnt have time for my usual witty repartee.

You?

#43 Former Fool on 10.20.19 at 2:48 pm

Garth,

I have not commented lately but I am a dedicated reader of your blog. You are unique in that you piece together the current events of the world (Trump, Brexit, trade wars, etc.) and highlight the possible impacts to the financial world, in an easy to comprehend way. You also have a sense of humor which makes your posts enjoyable to read daily. For free. It boggles my mind how that is not appreciated. Thank You. You have helped me tremendously. The weekly conference call recordings on Turner Investments are also extremely valuable.

Perhaps what is needed in the comment section to detract the trolls and arguments: require links to LinkedIn profiles. Surely the loss of anonymity would impose more civility in the comments section. Or simply disable the comments? Maybe that’s easier.

Anyway, your blog, your rules, I’ll still keep coming for the posts and dog pics.

#44 Stan Brooks on 10.20.19 at 2:50 pm

Expectations for decent intelligence in the marginalized debt-slave sheeple are unsound.

You can’t have it both ways, compliance and obedience on one side, intelligence and independence, critical thinking on another.

The problem is not the trust in [email protected], it is the monetary policies dictated by imbeciles and incompetents that screws people.

Negative interest rates are already here, according to Forbes:

https://www.forbes.com/sites/johntobey/2019/08/31/worried-about-negative-interest-rates-coming-they-are-already-here-and-that-is-a-serious-problem/#6a94a0075cc1

Some of the countries with the best pension system/safety nets are already experiencing severe difficulties, like Nederlands:

https://www.ft.com/content/83442daf-0399-3021-81fd-1f479ebfd27c

But here, oh boy here, with this ridiculous inflation of necessities and lack of safety nets, combined with pathetic pension ‘indexing’ that now results in pension that after lifetime of contributions by both employee and employer is now just ‘gas money’…

Imagine what it will be after necessities rise 200, then 300 % in the next decade or two with ‘indexing’ at 20 %, it wont be even toilet paper +soap/utilities money.

So investing is the must-do, no question about it, but what is the guarantee that those investment won’t be stolen either directly (exchanged for ‘guaranteed’ by government ‘returns’) or through heavy taxation?

Considering the intelligence and ethics of those in power, it is a pretty much guaranteed outcome.

#45 Tina Santos on 10.20.19 at 2:51 pm

It is interesting that Garth did not respond to Doug Franchese’s comments. It looks like it think it is true and will continue to be true for the next 10 to 20 years at the very least.

I try to ignore conspiracy nuts. How is that interesting? – Garth

#46 NoName on 10.20.19 at 2:55 pm

#27 jess on 10.20.19 at 1:33 pm
http://www.oecd.org/daf/fin/private-pensions/Pension-Funds-in-Figures-2019.pdf

tank you for this, now i am even more worried…

#47 Shawn Allen on 10.20.19 at 2:59 pm

Debt Exceeds Savings?

#40 Doug Franchese on 10.20.19 at 2:35 pm

I’m sorry Garth but from consumers to bankers to countries to corporations have gotten used to and expect low interest rates. The indebted is more than the savings or savers in the world.

***********************************
Therefore, much of the debt is owed to other worlds?

#48 Stay at home astronaut on 10.20.19 at 3:06 pm

Garth & team – it’s a brilliant blog.

#49 Stan Brooks on 10.20.19 at 3:08 pm

#45 Tina Santos on 10.20.19 at 2:51 pm
It is interesting that Garth did not respond to Doug Franchese’s comments. It looks like it think it is true and will continue to be true for the next 10 to 20 years at the very least.

I try to ignore conspiracy nuts. How is that interesting? – Garth

Profoundly low interest rates are here to stay

https://www.ft.com/content/84a1b13c-b2a3-11e9-8cb2-799a3a8cf37b

Negative rates on deposits for a veeeeeeeeery long time + fees on money held on deposits is pretty much guaranteed by the current banking system, let’s keep in mind that the last decade were ‘good times’ with ‘decent’ growth and still nominal interest rates were less than the bastardized ‘inflation’ measures (i.e. strongly negative real rates, specially for deposits/savers), so now with the coming calamities what is the chance of rates going up instead of down? Precisely zero, or even negative.

Current system that rewards debtors goes beyond governments to the private debt at times were savers are non existent and taxpayers can’t support all of the parasites befitting from the negative real/soon nominal rates.

The bank will laugh at you while charging you various fees and even negative rates on deposits with roaring inflation of necessities, it will even offer you a reverse mortgage and diaper loans….

It is coming folks, all that is coming, it is a given, a certainty and there is not a grain of conspiracy in it.

Cheers,

#50 Stan Brooks on 10.20.19 at 3:13 pm

#47 Shawn Allen on 10.20.19 at 2:59 pm

Your inability to understand how money and the banking system works and how loans create money (even in the form of new ‘deposits’) vs. loaning from existing deposits/savings, but more than that, your ignorance and persistence in rejecting well known and established facts becomes absolutely pathetic and sad.

If you really a CFA, i.e. can claim to be 1 % in terms of financial literacy I see absolutely no hope for this place, no hope at all.

Do you really read all this information that was posted many times on the topic and actually used all your brain capacity in order to process and understand it?

#51 Dean Harrison on 10.20.19 at 3:13 pm

Interest rates dropping for 30 years and coordinated central banks from U.S. Federal Reserve to ECB, Bank of Japan, Bank of Canada controlling interest rates with the first time in history with negative interest rates is what is happened and happening everyday. What a cop out calling someone a conspiracy nut when someone saying that could never happen 10 years ago is now happening today and are right.

Coordinated CB policy is one of the best things to come out of 2008. Be thankful. – Garth

#52 Prairieboy on 10.20.19 at 3:16 pm

Love the blog. Investment advice is great and the analysis on renting vs buying has been great.

Only glance at the comments once every few weeks to confirm they still aren’t even worth looking at, and it never takes more than a few to confirm it. While sometimes mildly entertaining they are rarely ever valuable.

#53 Blacksheep on 10.20.19 at 3:17 pm

“Sovereign debt is considered risk-free. It is backed by the power to tax. – Garth”
————————————-
There….straight from a former Cabinet Minister in charge of Canada Revenue Agency’s keyboard….

And some people wonder why Gold is still, sub 2K?

“Risk-free government debt is not a political fact, but a financial one. Canada or the US will never default. – Garth”
——————————
100% agree…

No sovereign in control, can be forced to default in their own currency, ever.

You have explained many times that the ‘demand is created for a currency’ when a sovereign applies a tax liability / burden to the masses, that must be paid (punishable by incarceration if not) and can only be fulfilled /cleared, with the acquisition and remittance of said, sovereign currency.

#54 Sail Away on 10.20.19 at 3:19 pm

#47 Shawn Allen on 10.20.19 at 2:59 pm
Debt Exceeds Savings?

#40 Doug Franchese on 10.20.19 at 2:35 pm

The indebted is more than the savings or savers in the world.

***********************************
Therefore, much of the debt is owed to other worlds?

—————————————–

Wow. Major plot twist!

#55 dakkie on 10.20.19 at 3:24 pm

Canada’s Most Splendid Housing Bubbles v. its Other Markets, September Update
https://www.investmentwatchblog.com/canadas-most-splendid-housing-bubbles-v-its-other-markets-september-update/

#56 Blacksheep on 10.20.19 at 3:25 pm

On today’s blog:

Thank you Garth for the many years of financial / economic enlightenment you have provided me with.

I chose a different path to wealth accumulation than the one you promote, but still take in and appreciate, the constant stream of knowledge you and some of the Dogs provide.

#57 Steve on 10.20.19 at 3:27 pm

Stop the comment section and that’s it! Love the blog, rarely comment. Love reading it!

#58 crowdedelevatorfartz on 10.20.19 at 3:30 pm

@#36 Alberta Nomad
“This blog is a diamond in an ocean of mud. Thank you for your efforts to make the world a better place.”
++++

That comment deserved repeating.

#59 Cowardly Lurker on 10.20.19 at 3:30 pm

Please hang in there.

You provide a valuable public service.

Also my go to place for dog pictures.

#60 Stan Brooks on 10.20.19 at 3:31 pm

#53 Blacksheep on 10.20.19 at 3:17 pm

There are limits to taxation in current conditions, any further tax increases will result in spending cuts and will be highly unpopular.

Taxation increases cost of currencies as it creates demand for it but in the next decade or two new taxes are highly unlikely even with incompetent liberals in power.

Most likely we will see very loose monetary and fiscal policies/deficits combined with negative nominal interest rates resulting in much higher inflation and much less ‘indexing of guaranteed’ income, so retires and pensioners will be screwed eve more/yes, that is possible.

You can only extract that much water/dough out of a stone.

If only problems were solved by loose monetary policies and taxation/beating the dead horse/taxpayer….

#61 Paterfamilias on 10.20.19 at 3:41 pm

Thank you for this blog, Garth. I have read each and every instalment, since you began it. Should you decide to cease, your reasoning will not be difficult to understand.

#62 Gravy Train on 10.20.19 at 3:51 pm

#10 NoName on 10.20.19 at 12:17 pm
“So my question to you is would you share with us power generating numbers for the [whole] year, what kind of setup you have / pv-surface and province?” If I give you that information, will you rush out and buy solar panels? Or would I just be wasting my time? :)

#63 crazyfox on 10.20.19 at 3:51 pm

I have some advice for you Garth, unsolicited, I hope you don’t mind. Most of us have never owned or invested in bonds. The first time for most will be through a financial planner. The simple basics such as coupon values rising as interest rates fall (on some types of bonds) offsetting the damage of an economic crash for investors or buying bonds to use as securities to borrow money at the fed fund rate for example, these basics are lost to many.

So, teach us about bonds. Remind us why, when you speak about diversification, you speak about investing in bonds, REIT’s, preferred shares and ETF’s to negate risk, and the percentage breakdown that insulates you from risk, but still gives you a decent return. I know you’ve already touched on these themes in the past, but touch on them again if you would please with a specific focus on bonds. Retail investors (we have plenty here as evidenced) are familiar with what they can buy from market exchanges but that’s where it ends and as such, are weak on bonds.

Listen, I know you can’t just give out the investment formula (Its adjusted somewhat to market conditions anyhow, a formula in itself if I recall correctly) but you can talk at length about each specific investment sector, its risks and rewards and you have. I know you’ve touched on it in past detail with REIT’s, preferred shares, ETF’s even large cap dividends and their risks/rewards but bonds due to their diversity and unfamiliarity with the average retail investor, well, you see it for yourself and it must be frustrating for you so… educate us. Give us a piece on bonds, a crash course if you would please.

And yes, you are spot on with human behavior. We mistakenly intertwine worth and esteem with the size of our bank accounts. Superior/inferior, the main driver of all conflicts external and internal, are commonly fed by the values we place on money (among other things) and we see it every day and in the comment section in some way shape or form. Regarding all others as equals to ourselves in terms of value and worth regardless of our differences, this takes love for one another… forgiveness… oneness… but its the only road to peace and we can know it but ultimately we have to practice it or peace we will not know at the very least, within ourselves.

I mean, its obvious every day in the comment section who’s not at peace, they are either beating themselves up or looking for a fight because they have not learned the basic fundamentals of peace and war… is it not?

#64 Blacksheep on 10.20.19 at 3:51 pm

Shawn # 47,

“Therefore, much of the…”
——————————–
Shawn, man, I say this with as much respect as I can muster: Please just shut the hell up about this petty banking crap. We ALL know how it works…

We have all read the dozens of keyboard battles between yourself and absolutely anybody else that will bite (your truly, guilty as charged) to the point ad nauseum.

You have many other valuable insights to contribute.

You do yourself and this blog a disservice by acting like this sites bank cop, constantly defending the chartered banks honor.

The smartest thing I have ever heard you recommend, is for Dogs to invest in bank stock and reap in the profits they enjoy.

#65 Blacksheep on 10.20.19 at 4:03 pm

Stan # 60,

“There are limits to taxation in current conditions, any further tax increases will result in spending cuts and will be highly unpopular.

Taxation increases cost of currencies as it creates demand for it but in the next decade or two new taxes are highly unlikely even with incompetent liberals in power.

Most likely we will see very loose monetary and fiscal policies/deficits combined with negative nominal interest rates resulting in much higher inflation and much less ‘indexing of guaranteed’ income, so retires and pensioners will be screwed eve more/yes, that is possible.

You can only extract that much water/dough out of a stone.

If only problems were solved by loose monetary policies and taxation/beating the dead horse/taxpayer….”
———————————
Stan…respectfully, your thinking is stuck in a time warp with Shawn of the Banks and I am to lazy to try and enlighten.

#66 Coopoiler on 10.20.19 at 4:11 pm

Do not forget to vote tomorrow.
I once worked as a scrutineer for an election(does not matter what party I was for).
Learned that day about how tenuous our democracy really is.
A lot of the workers seemed not to understand what they were doing. Wouldn’t go into details. Since that day I have worked the elections hopefully in a competent way. My way of contributing to democracy.

So Please vote!

#67 yorkville renter on 10.20.19 at 4:12 pm

wanna have better comments? make people post using their actual verified identity… added bonus: I’ll probably stop posting

#68 NoName on 10.20.19 at 4:26 pm

@crazy fox

I see what you did there. Basic psychology iv heard it from expert on a radio other day. When society get to the point where when people feel marginalized, for what ever reason is, most recent reason is proverbial climate change, marginalized side/sides prefer anarchy over rule of law, as we can see how all those protesters…

#69 Andrew on 10.20.19 at 4:31 pm

This was all true when Burton Malkiel wrote it down in 1973 in the US and it’s all still true today in Canada. I have been investing this way for near enough the whole of my life and have never once regretted it. I have also lost count of the number of people I know who tried to pick individual assets and ended up losing badly. Leave that stuff to Warren Buffet.

#70 SoggyShorts on 10.20.19 at 4:31 pm

#50 Stan Brooks on 10.20.19 at 3:13 pm
… your ignorance and persistence in rejecting well known and established facts becomes absolutely pathetic and sad…………………..Do you really read all this information that was posted many times on the topic and actually used all your brain capacity in order to process and understand it?
****************************
Nice quote coming from someone who has been told dozens of times that inflation numbers measure more than just your vegetables and rent in TO.

#71 v in Calgary on 10.20.19 at 4:32 pm

Hi Garth and Co. I think it’s been well said, but most of us come for the great content and advice. If the comments section were gone, no big deal. Maybe you have enough with folks emailing you directly for advice. Worth considering. Thanks for all the years of teaching.

#72 Donny Stanford on 10.20.19 at 4:38 pm

Be Thankful, what a joke. The risk takers should lose and the prudent, responsible should thrive. This financial world we live in created by those in charge is rigged and you all know it. Interest rates were put in place to keep speculation and gambling now trading in check but now it is all a bunch of lies and this will end not well even for a balanced portfolio which is not balanced anymore with all this manipulation. I know the truth hurts and people can’t handle it.

#73 Shawn Allen on 10.20.19 at 4:39 pm

All money leads to banks

Do you have any money? Not wealth but actual cash?

I’m willing to bet very little of that is in the form of paper cash in your wallet, your safe or under your mattress.

Your cash, if you have much, is almost certainly mostly in a bank account.

And if you spend it, it will almost certainly end up in the bank account of the place you spend it at.

Cash money moves constantly from bank account to bank account.

But it seldom leaves the banks in the form of paper currency.

Therefore, I say, all money leads to banks.

Most money resides in banks and stays in banks.

There is also a surprising amount of paper cash out there. I’m not sure who is holding that other than criminals and a few nuts. Regular people hold little paper cash.

Some bank haters out today. How many of them have ever read and understood a bank’s annual report and balance sheet? For such reading, I recommend a bank like Canadian Western Bank since it does not do much more than traditional lending and deposits. Wells Fargo also has a very informative annual report showing exactly how its funds its loans.

#74 GRG on 10.20.19 at 4:45 pm

Mr. Turner: I check out your blog every day for two reasons; the dog pictures and the sound advice. In that order, LOL.

I rarely read the comments (who has time to wade through all that?) and try to be sensible in my infrequent posts (when I’m not being sarcastic).

A few observations, in no particular order:

– Of course we behave based on emotions; every day there’s a relentless assault trying to influence our emotions in order to shape our behaviour.

– We now live in a world of mobile devices spewing constant distraction; its increasingly difficult for most to turn it off, filter the noise from the valuable information, or avoid an over-emotional engagement dependency on their not-so-smart phones.

– The “doomers” capture an outsized share of attention; whether that be “the stock market will crash”, “the US$ will crash”,”Trump will start WWIII”, “the world will end in 12 years”, etc. seem to have a morbid appeal for large numbers of people, and particularly the media, with its breathless reporting of the coming crises. That the UN and gawd knows how many others take “You’ve stolen my childhood…” seriously is ample evidence that doom sells.

– The speculators also capture an outsize share of attention; whether they allegedly made a killing in YVR property flipping, bitcoin, Tesla or precious metals options makes no difference; the emotional appeal of get-rich-quick is stronger than ever. And easier than ever to pursue in our now financialized world.

Those of us with prudent savings habits and thoughtful, balanced investment portfolios are probably the least inclined to post here. And that no doubt seriously skews your sampling.

As an aside, we Canadians live in a political mono-culture, becoming more so with each Federal election cycle. Courageous, inspired (or inspiring) leadership is completely absent as every Party panders to the same polling of voter anxieties and identity politics. That even Jagmeet Singh would not come out with a firm denunciation of the xenophobic Bill 21 is discouraging.

As is the pitting of Provinces against one another, and the hostile policy platforms towards small business, entrepreneurs and the essential base industries of certain Provinces.

Regardless of the outcome tomorrow, the best we can expect is temporary respite.

#75 Long-Time Lurker on 10.20.19 at 4:45 pm

I apologize for every comment about Martians that I put on here, Garth. (Hee hee!)

#76 isleofvanman on 10.20.19 at 5:06 pm

Question – there’s a 1950’s bung on my street in North Van that sold at the peak for 1.58 mil in May 2016 which the buyer tried to unload at a similar price earlier this year with no success. More recently it was pulled off the market and the latest I heard is it’s on airBnb now. Is that even allowed when the owners are no longer living there ?

#77 The other Keith in Calgary on 10.20.19 at 5:10 pm

First, your blog, your rules.
Second, I’ve long suspected some come here for the comments, to be amused, or outraged, or some combination.
Pity there isn’t a way to break up the comments into two sections. Actual real comments that address the topic at hand in the blog. A second section, perhaps called The Steerage Section, that is all else that does not merit deletion.

#78 Not So New guy on 10.20.19 at 5:12 pm

To quote the old saying:

“It’s not you, it’s me.”

Honestly.

I think the problem lies with trust.

It appears that most people on this blog are well-read financially. Definitely above average. I think the problem is that most here know how deep the government has its fingers in the markets and thus the price of everything.

Knowing the game is so badly rigged tends to make one skittish and highly distrustful. So I say again, it’s not you, it is us. Yes, you may manage portfolios with millions but it is also easier to lose half of a ten million dollar portfolio
then it is to lose 250,000 that you just spent a half lifetime accumulating. One can start over, as a multi-millionaire, and the other is wiped out…for life

So maybe you need to approach the kennel with that mindset. Or at least have that understanding when the moon gets full and everyone starts baying. It will be better for everyone’s sanity

#79 DON on 10.20.19 at 5:17 pm

Long live the “Greater Fool University”!

Commenting should be done with a degree of respect as if you were facing the person across the coffee table.

Great Public Service Garth and thank Doug, Ryan etc for their balanced analysis also.

#80 Scruffy on 10.20.19 at 5:18 pm

Hey Garth – don’t get frustrated with the negative commentary and infantile thinkers. Haters gonna hate is the saying.

You’ve impacted so many people and educated so many of us who come here to read not only your blog but also all the commentary, not to mention your chiseled abs and love of dogs. Some of it is interesting, some of it is infantile. All of it is educational in one form or another.

You have raised my level of financial literacy immeasurably. I travel a lot all over the world, and no matter where I am your blog is required bed time reading. Haven’t missed a post in many, many years.

Thanks for all you do, and I hope you continue this forum as long as you can. You are a national treasure. Your advice is simple in concept (hold a B&D portfolio, live within your means, don’t be a poser). Wish more people would honour these values.

For the silent majority I can say – THANK YOU and DON’t STOP!

#81 T on 10.20.19 at 5:28 pm

It might be time to shut it down and move on, Garth. You’ve had a good run with this blog, many have appreciated it, many more will never understand it. Even more use it as ‘evidence’ of how real estate values will never fall even though many have ‘predicted’ they would for over a decade and not to believe anyone to pushes investment over debt.

Basically, the blog is now working against the ideals you fight for. Ironic, but true.

Really, think about it. Your time must be worth more than the return this blog beings these days.

I’m an avid reader, sincerely appreciate your advice, but perhaps your reach has maxed out and returns are diminishing quickly.

#82 J on 10.20.19 at 5:50 pm

Look at the number responses! You’ve hit a chord.

Bla,bla balh teaching a bit of wisdom finally. It feels good doesn’t it?

I like $ I need $ as long as it give me the means of surviving (family) 1st and foremost then a bit of room for enjoyment, a bit of safety to help when it is really needed and for a few decades.

Sharing a bit of wisdom with hopes that it connnects .
Nice and needed once and a while. Most disconnect without realizing it.

I don’t follow but starting too.

From No one. Good help.

#83 Linda on 10.20.19 at 6:00 pm

The government we deserve. i’m torn about hoping for a minority government (said hope being, less likely to be able to do much damage) but with the likely outcome of having another election called within two calendar years. Minority governments do not tend to last long, so back to the polls with all the attendant expense. Also I wonder whether a minority government would prevent some of the less fiscally responsible promised policies from being put into place. Seems all too likely to have the opposite effect. Eek, they’ve created a franken-policy! Igor, pull the plug! AHHHHH!!!

#84 Loonie Doctor on 10.20.19 at 6:03 pm

As a DIY investor, I have benefited greatly from the tips, tax teaching, and reassurance provided by your blog. We are fortunate that your portfolio managers share their perspectives on the markets and various asset classes too.

Smart DIY investors probably soak it in without much comment or the occasional intelligent question (not an opinion or a brag disguised as a question). There will always be some who think they are smarter than everyone else. They make the most noise which is too bad because they’d learn more by listening. Please don’t stop the classes, just sit them in the corner with the special dunce cap.
-LD

#85 acdel on 10.20.19 at 6:03 pm

#7 Marcus

Could not agree with you more.

Garth, you have done a great service to all that has listened; including me; but for Pete’s sake you are an ex politician; probably have done well with your blog regarding people investing with your firm (and good for you for all your free advice) but common; expect different ideologies on your blog. This is why most of us come back and read; love them or hate them that is democracy and keeps your blog interesting! Your choice; you are the boss! Keep it going or shut it down!

You have posted here hundreds of times. Do you want a tummy rub, too? – Garth

#86 IHCTD9 on 10.20.19 at 6:06 pm

I just saw a flock of about 100 Canada geese flying… north.

2020 could be a rough year.

#87 Yuus bin Haad on 10.20.19 at 6:09 pm

Speaking of Climate Change, I struck up a conversation with a group of young activists at the local Burger King the other day after they had chowed down on a mess of Whoppers (no plant-based protein for these puppies). I wouldn’t normally have talked with them, but one guy left his PVC yoga mat behind and I had to chase after him. As for the conversation, to tell you the truth, I couldn’t make much sense of anything in between all the ‘OMG’s and ‘like’s.

#88 Yanniel on 10.20.19 at 6:10 pm

“ It’s the only thing that works, consistently, decade after decade“.

Here’s one counter example to that generalization: momentum. It works in equities, bonds, currencies, commodities, across different geographies and even sectors. It has endured the passing of time.

#89 Omer Mallhi on 10.20.19 at 6:11 pm

Hi Garth. I wanted you to be my financial advisor but unfortunately you never answered my queries so this blog is the ONLY source to your wisdom for me. I know this world is full of cynics always looking at anything free with scepticism but the fact is for me your blog has been the best source of financial advice.
If there is heaven (which I believe there is) you will be their financial advisor. Keep rocking my man.

No idea what happened, but I respond to every email, except those from Nigerian princes. The address is “[email protected]” – Garth

#90 acdel on 10.20.19 at 6:22 pm

#85 acdel

You have posted here hundreds of times. Do you want a tummy rub, too? – Garth

————————————————————

Sorry Garth, not into that; but whatever shakes your tree! You are the boss; just not mine; sorry! :(

#91 Treasure Island CEO - 29,655,432.33 Offshore on 10.20.19 at 6:28 pm

Just like a business, there is a reason why this blog keeps on rolling. Cha-ching$$$

The sole measure of success is thy Bank Account baby.

Grand Cayman is your friend.

#92 IHCTD9 on 10.20.19 at 6:28 pm

#48 Stay at home astronaut on 10.20.19 at 3:06 pm
Garth & team – it’s a brilliant blog

Seconded. Great advice, great info, and I like the comments section too, including all the off topic stuff!

#93 Diversified in Oakville on 10.20.19 at 6:28 pm

Hello Garth,

Utterly well said. As I approach retirement, all I am looking for is a stable, well lived life. Your advise has helped me to achieve the financial end.
Thanks a bunch.

#94 New Handle Rules on 10.20.19 at 6:32 pm

The name handle should be based on how much cash one has.

So instead of “Johnny” posting a comment. It will be “$200,000” CAD posting.

That will sort of the IQ issue.

Don’t trust anyone with over 6 figures in wealth.

#95 Sail Away on 10.20.19 at 6:32 pm

“There’s a reason I preach balance, diversification and liquidity.”

——————————————-

Paraphrasing the late great Stuart McLean, the problem with proselytizing is that you don’t get to choose your followers…

#96 there are tousands and ... on 10.20.19 at 6:34 pm

#86 IHCTD9 on 10.20.19 at 6:06 pm

I just saw a flock of about 100 Canada geese flying… north.

2020 could be a rough year.

tousands of snow geese here in the LM right now. What a racket if you are anywhere near them. They don’t sit here long so anybody wanting to see them better be doing it soon. Love the blog …

#97 NoName on 10.20.19 at 6:35 pm

#62 Gravy Train on 10.20.19 at 3:51 pm
#10 NoName on 10.20.19 at 12:17 pm
“So my question to you is would you share with us power generating numbers for the [whole] year, what kind of setup you have / pv-surface and province?” If I give you that information, will you rush out and buy solar panels? Or would I just be wasting my time? :)

No i wouldn’t, maybe, saving planet is all the way down on priority list… planet will steel be prbiting sun wit or without pests on it. :-)

But i was thinking in term of numbers how it would worked out coupled with an electric car, and instead of selling hydro to province, using it to charge car i think if you wont to get rebate it has to be connected to grid, but my only thing is as a stand alone unit.

i run some number based on number you provided it looks like that your setup can propel electric focus almost 70k-km per year. And save on a gas around 6k comparing it to same car with gas engine @1.05cad/liter.

https://imgur.com/a/Uy58C2B

So if you find mistake, keep in mind math was never my stronger suit.

#98 Dolce Vita on 10.20.19 at 7:17 pm

Surprised you opine about the IQ of Blog Comments.

The mean IQ of humanity = 100.

Thus and probabilistically, 50% of your Commenters posses an intelligence below that. Be grateful, Mother Nature has afforded you a business from that fact.

Because a person can write an extra 0 or two on a cheque than most, does not make them a paragon of wisdom nor a genius (neither that you manage a lot of money on their behalf).

There is more to life than money and, it does not buy happiness. For that, mind, body and soul need to be in balance. You are a chronicler that takes himself far too seriously of what happens when they are not in balance.

To wit this Blog.

Still unhappy I called out out on racist sentiment, I see. So much for a balanced soul. – Garth

#99 Kurt on 10.20.19 at 7:33 pm

#35 Shawn Allen on 10.20.19 at 2:18 pm
“Why write a comment that is so uninviting to read?” Because making a clear, well-organized argument is hard work, and in the process of doing that work you often find out that you are wrong. People who make comments like that are shouting their emotional upset to the world, without making the effort to ensure what they write is valuable to the people who read it. Very simply, you make a comment like that because you are self-centered and lazy – or maybe incompetent, in which case the correct thing for you to do is to practice, put in the hard work and not post until you have something useful (or at least amusing) to say.
Yes, perhaps your question was rhetorical, but I think it deserved an answer.

#100 Oli on 10.20.19 at 7:36 pm

Behind a keyboard and a username, it is far too easy to spout vitriol, cast judgement, and propagate conspiracy theories.

This dog-eat-dog blog has been a great resource for me and has pulled me back from the ledge of financial suicide more than once. If I followed some of the peanut gallery in the comments section, I may have ended up with 2 Kias, a slanty semi, and a clowder of cats!

No one can predict the future, but I trust more the words of a man who has devoted his life to helping people – not through a magic formula, but via common sense – than to trust the “next big, can’t fail” thing that promises to help me strike it rich.

A foolish decision that works out in your favour is still a foolish decision.

#101 Niagara Region on 10.20.19 at 7:41 pm

Hi, Garth,
I rarely read the comment section, but I read your blog daily and appreciate your insights and advice. I have learned a great deal from you. For example, because of you, I am now maxing out my voluntary contribution room in my employer’s pension plan. I continue to rent a rent-controlled house and no longer believe that I’m losing money by not owning a house of my own, which, as you have pointed out repeatedly, is typically a more expensive way to live. In short, thanks for all your great financial insights. I look forward to learning more from you.

#102 Igor on 10.20.19 at 7:47 pm

Thank you for all the work that you put into this blog, Mr. Turner! And for all the valuable information that you share with us!
Please keep the blog going, for those who care and who are infinitely grateful!
If you decide to change subscription fee to eliminate all people who don’t want your advice – you will still have lots if readers! (count me in!)

#103 Smartalox on 10.20.19 at 7:55 pm

Garth,

As a member of the 1% that regularly has, commented regularly over the past decade, don’t let the slings and arrows of the fraction of the 1% that leave idiotic comments leave you comments that are more testosterone that thanks leave you disheartened. Your efforts are invaluable, and have not been in vain.

Ten years ago, I wrote to you in crisis. My parents were in debt well over their heads, their only asset was a house that had been heloc’d to the hilt. The bill collectors were pounding in the door, the payments were weighing on my (then) 77 year-old mother, it seemed certain that they would lose the only thing of value that they had, and they were looking at their kids for a bailout.

You provided some wonderful advice via the blog, giving me the pseudonym ‘Jenny’. It was suggested, and for the most part, ignored. We managed to Cobble together a solution, and those conditions held, if only for a decade.

Lately, history has repeated itself: they’re overspent again, blowing through an inheritance, and accumulating thousands more in debt.

Time for another bailout, though this one will have to be permanent. Probably several hundred a month at this point, hundreds more in the coming years to see that out at a reasonable level of dignity, if not comfort.

The difference for my family, between now and a decade ago? You. You and this blog.

Sure, I earn more money now as I have advanced in my career, but I also keep more, as I have taken your advice to avoid extra taxes. More importantly, I have my investments managed professionally, by someonewho knows how. I’ve also managed living costs for me and my ownfamily. renting and living modestly, and investing the rest.

The Results that this time, as I have to bail my parents out, my nest egg is fully fledged. With about $750k managed, and 20 years to go before retirement, I’m now, THROUGH YOUR INFLUENCE, in a better position to cover their retirement, without compromising my own, than I was when I first reached out, a decade ago.

I ‘ve got them. I’ve got this. and I can’t thank you enough for that.

Don’t let the bastards going you down, or let the Cowboys run you ragged. You’re efforts have value, beyond measure.

#104 Smartalox on 10.20.19 at 8:00 pm

Sorry for my spelling and grammatical errors in my last post. I’m on Holiday, and have been into the bourbon. Thanks!

#105 Prince Polo on 10.20.19 at 8:03 pm

Thank you for your service.

#106 Chris on 10.20.19 at 8:05 pm

Another great column, Garth. Thank you! Please remember that for every ignorant cowboy who spews nonsense, there are many of us who appreciate the thought, time and energy that you put into this blog. My adult children both read your column as well, so they are well on their way to understanding the ‘balance, diversified portfolio’ way of thinking. Cheers!

#107 Tummy rub on 10.20.19 at 8:05 pm

Good blog
Good learning
Weird commenters,
I am not sure why Canadians today think borrowing one trillion and no savings is wise. Live for today?
That’s why PC, Lib and NDP promised spending money live for today no one cares.
what will happen when all this house of cards fiat money collapses?
You say stay invested be balanced, but no time in history have we seen this mountain of debt. At least the last generation sacrificed their lives and then sacrificed to pay off the debt of war and for a better life, but now this generation spends and borrows. 70 percent of GNP is consumer spending based Mostly on borrowing.
Sorry I am not a doom and gloom guy or gold licker but this debt mountain can not end well. The money train will end, when? No one saw the last collapse. We were lucky.

i Think they said the same thing during the roaring 20s this will never come to an end.. Same thing borrow and live like no tomorrow I have a hard time imagining how this will end, yes you will say ……yep we survived every crisis, but what if you are wrong this time?

#108 acdel on 10.20.19 at 8:05 pm

Last post if Garth allows it this evening! His Menapause is showing this evening. Hey; all before we vote let’s answer a few or get answers to a few questions.

Scheer will not answer whether the Cons hired a consulting firm to dig deep into Mad Max!

T2 will not answer anything especially if he is asked if his so called good buddy “Obama” to endorse him!

Greta was invited into Canada but will not say by whom!

Happy voting everyone! Be smart about it!

#109 mark on 10.20.19 at 8:06 pm

I apologies for being a nob…..

Really…..

#110 Burnaby_joe on 10.20.19 at 8:08 pm

Hi Garth:

I have been reading your blog for what feels like a decade. Not sure if you have been writing it for that long or not, but longtime reader.

I have commented 3 or 4 times during that decade, mostly when you have asked for input from your readership.

I appreciate your writing style and your humour. Thank you. You have helped me over the years, and I wish I had had access to your insights when I began my investing journey, almost 40 years ago.

With regard to your issues with your Comment Section – I suggested the same the last time you had similar issues, and that was to Disable the comments altogether – I NEVER read them, finding more than enough for me, in the blog itself.

#111 Burnaby_Joe on 10.20.19 at 8:10 pm

Garth, I had not intended on posting my actual name.

If you can post the comments under the Burnaby_joe name, that would be appreciated.

#112 Smoking Man's Old Man on 10.20.19 at 8:10 pm

Your second to last paragraph, “Wealth greatest gift it to enhance time. Erase stress. Grant security. Let you savour each day.”, couldn’t have been stated better.

I find all that matters in life, is how we treat others. I spend a lot of time meditating and exercising, and reflecting. Reading about Buddhism, Stoicism, The Taoism. I’m in the best place of my life now and I’m happier than I’ve ever been.

People who come here and attack you (I personally don’t read the comments anymore for that reason) are not in a good place. Nobody is even unkind when they feel good about themselves.

Anyway, enjoy you writing immensely, maybe you owe it to yourself and your family to “live” by the second to last paragraph yourself. Rather then taking time to write this blog you could go for a walk with Dorothy and Bandit, or just go for a walk by yourself.

#113 IHCTD9 on 10.20.19 at 8:31 pm

#98 Dolce Vita on 10.20.19 at 7:17 pm

The mean IQ of humanity = 100.

Thus and probabilistically, 50% of your Commenters posses an intelligence below that. Be grateful, Mother Nature has afforded you a business from that fact.
——-

So… you’re saying anyone who has their nest egg with T.I. is dumb as a rock?

#114 akashic record on 10.20.19 at 8:41 pm

If the debt creators win tomorrow, can we shift focus to tax avoidance?

Why should I pay my unfair share, to justify the economic theory, that this country can’t go bankrupt, no matter who and how runs it, chasing their costly dreams, because the bottomless pit of tax slaves will scrape enough of blood and sweat servicing the debt?

#115 crowdedelevatorfartz on 10.20.19 at 8:42 pm

@#110-111 Burnaby Joe

“With regard to your issues with your Comment Section – I suggested the same the last time you had similar issues, and that was to Disable the comments altogether – I NEVER read them, finding more than enough for me, in the blog itself….”
+++++

North Burnaby or South Burnaby….
Svend or Singh?

#116 chris l on 10.20.19 at 8:59 pm

Garth, long time reader and non-commenter.

I think ending the comments section is the way to go. 99% of the blog’s value is in your daily articles.

Chris L

#117 red falcon on 10.20.19 at 9:04 pm

I love investing. it’s not a sprint but a marathon that keeps going and going. So, buy the stuff you always use in stock and you’ll be fine.

=)

#118 gfd on 10.20.19 at 9:07 pm

https://www.youtube.com/watch?v=COsVgbAJ8B8

#119 short horses on 10.20.19 at 9:17 pm

Hi Garth,

I’m functionally an expat and when you post each new blog article it’s a few hours before I wake up. On my long commute to work each day, your blog is usually one of the first things I read.

I look forward to what you and your colleagues have to say, though not so much to the comments. I hope the blog will continue and if the comment section disappears I’ll still read the daily articles.

#120 SW on 10.20.19 at 9:17 pm

Another grateful reader, Mr. T!
You and the people who work with you are reaching so many people who do actually benefit. Thanks so much.
I wish well to you all.

#121 Jeff in Vic on 10.20.19 at 9:18 pm

Garth… we do not take you and your team for granted. I have read 99.5% of posts since day one! The posts got me through 2009, 2010… what a gong show that was! Met you in Vic on tour, you spoke to my wife and I during those dark days and talked us off a ledge. Love the Nova Scotia connection … went to University there and we had our honeymoon in Green Bay. Thank you from a blog dog that does not post often.

#122 AisA on 10.20.19 at 9:18 pm

Don’t be afraid to waste your vote on your principles tomorrow.

If we voted our principles instead of the clown faces we are presented with by the major parties, perhaps our principles might eventually become more represented in the policies presented.

#123 Shawn Allen on 10.20.19 at 9:25 pm

About the Debt Exceeding Savings

And Stan Brooks complaining:

Your inability to understand how money and the banking system works and how loans create money (even in the form of new ‘deposits’) vs. loaning from existing deposits/savings,

**************************
Not sure where Stan got the idea I don’t understand banking but here is an example of how it works and yes how banks create money.

Imagine Joe has $25k and want to buy a house. Frank has a paid for house and lives on a good pension but has no savings and (having taken Garth’s advice) wants to sell his house for $500k and will then rent or move to a seniors home.

Total cash money savings between the two is $25k.

Joe gets a mortgage loan for $475k CMHC insured and buys the house from Frank for $500k. Real estate and other fees are $25k.

Now Joe has no savings. Frank has cash money savings of $475k and the real estate agent and or lawyers deposit $25k in fees.

Total cash money (i.e. savings) is now $500k an increase of $475 which is the amount of the mortgage.

Total debt has increased by $475. Total savings have also increased by $475.

My original post was in response to someone suggesting debt exceeds savings. Not possible. Debt is owed to someone. That someone will considers the debt receivable to be their savings.

When banks create money by setting up a loan they create debt for one person and savings for another. (Well initially, they create debt and savings for the same person, but then the person getting the loan spends the loan deposited in their account and it becomes someone else’s savings.)

This is part of how banking works. No need to be rude about it.

#124 ImGonnaBeSick on 10.20.19 at 9:28 pm

I value your advice Mr. T. Thanks for what you do!

#125 RandomlyGenerated on 10.20.19 at 9:39 pm

First time commenting here. Been reading the blog for almost 9 years. This decade has been so full of hardships for me. Lot of things just didn’t work out and i am still struggling and trying to figure my path in life. All that said, got to learn a lot from you, Mr. Turner.

Please continue doing this and may god bless you.

#126 acdel on 10.20.19 at 9:44 pm

Ah the hell with it; I am old enough to not care any longer. I think that I will vote either N.D.P. or for the liar T.2. this way I will live a comfortable retirement while adding billions to the debt while all you young pay for me; life is grand; good-luck getting a pension,paying your debt, and having a life. I did my time; all the best with yours, ha! :) Thank you! Thank us! In twenty years you are so hooped!

#127 John van der Leek on 10.20.19 at 9:45 pm

Thanks for a great blog, Garth and team. I have learned to be a balanced, boring investor thanks to you. I read you very nearly every day, but avoid the comment section.

Keep up the great work! Ignore the haters. Thanks for providing something so good for free. And no stinking ads. Pretty sweet deal.

#128 oh bouy on 10.20.19 at 9:46 pm

@#85 acdel on 10.20.19 at 6:03 pm
#7 Marcus

Could not agree with you more.

Garth, you have done a great service to all that has listened; including me; but for Pete’s sake you are an ex politician; probably have done well with your blog regarding people investing with your firm (and good for you for all your free advice) but common; expect different ideologies on your blog. This is why most of us come back and read; love them or hate them that is democracy and keeps your blog interesting!
————————————-

lmao, folks come back for Garth’s wisdom not for the nonsense in the comments section. Comments from you, marcus, smokingman etc are good for a laugh and thats it.

#129 D on 10.20.19 at 9:54 pm

Garth and Team,

Echoing many of the other comments out there and really appreciate what you do in terms of both the blog itself and your logical (or humorous) responses to some of the comments.

Please keep up the great work for those of us who are normally quiet devotees to your posts!

#130 yvr_lurker on 10.20.19 at 9:57 pm

Although we don’t share the same political leanings I have learned stuff from you and listening to others about ways grow wealth outside of real estate. My wife and I both earn a good salary, and excel at savings, looking for bargains, and not over-consuming. In many ways we share much of a common mentality with the fire people, but the difference being we love our jobs. I really enjoy trying to live on the cheap as much as possible. Where we struggle is the idea of trusting others with growing our $$$, rather than learning how to do it ourselves. We understand much of the tax stuff that pertains to us as being salaried we get hoovered every time the marginals go up, and we are inelligible for any of the Gov’t handouts… no income splitting, no bogus corps, no mega-family trust fund to manage….no offshore accounts or other BS. Well-stocked DC pension plan with the employer that we have little flexibility with but that is doing around 6% per year…….. so all in all, not so much need for a financial advisor and all the extra tax planning and hand holding…. the key is to learn to do something decent yourself…..Thanks… This is where your blog is really useful.

#131 Millennial Realist on 10.20.19 at 10:12 pm

Paleo Boomers become irrelevant in:

1.5 Days and Counting………..

#132 Bt on 10.20.19 at 10:17 pm

I’m a daily blog dog- appreciate what you do. I occasionally visit the comment a bit treat it like gold panning, lots of mud for one flash in the pan.

#133 Bob on 10.20.19 at 10:20 pm

They fail for two reasons:

1) They love money and pursue it above everything else. The Proverb says that “The LOVE of money if the root of ALL evil.” People love money even more than they love themselves or love others.

2) They will always be a SLAVE TO THE LENDER. Once the break free of this slavery then they will prosper. Debt is a monster and it kills good people.

#134 Smoking Man on 10.20.19 at 10:21 pm

In 24 hours we will know if Canada Survived or Dies.
Love my green card.

Saw this shit coming a year before T2 won and I made other arrangements..

Now it’s high stakes poker. He wins you will all go broke within 4 years.

Vote accordingly.

#135 SmarterSquirrel on 10.20.19 at 10:30 pm

Garth. I follow some of your advice. Global diversification. Diversification of assets with the exception of bonds. I don’t own any. I do own a lot of REITs and a lot of stable non recession impacted businesses. Mostly everything is in dividend growth stocks. As the stock markets decline I just buy more stable companies with healthy well covered dividends. I don’t panic sell and I don’t panic buy. My dividends cover my current expenses but I keep working my job because one day I may get the additional expenses of caring for senior parents. So I keep collecting dividends and reinvesting them and so the dividends grow annually by 5% for reinvesting in an average 5% yield and they grow by about 3.5% from dividend increases. So over 8% growth in dividend income then I add savings and invest in more dividends. To me the cash flow is better than hoping a portfolio increases every year. Even during the Great Recession Canadian banks kept paying their dividends. So I take most of your advice but ignore the bond portion and focus more on stable growing well covered dividend companies.

It seems to be working. And if I can get an overabundance of dividend income then it should secure my retirement. And like you, I plan to start investing in actual real estate now that my finances are somewhat secure.

Thanks for the insights!

#136 fishman on 10.20.19 at 10:39 pm

Not much action about the big federal election tomorrow on this blog tonite. I smell fear. Every Canadian election is like a game of Russian Roulette. The right combination & permutation? Bingo. Factionalism breeds opportunity. No place for the believers. Liquidity rules.
Remember the 5 G’s. No, not the Chinese one. The western Canadian one. Girl,God,Guns,Gold & Garden & not necessarily in that order.

#137 Terry on 10.20.19 at 10:49 pm

Garth, you are very talented and gifted with your posts, no SU intended. But financial ignorance with the masses is rampant and by design. Most people don’t know how to create real true wealth nor do they have the time or even care how do it properly. FOMO emotion and consumption is the narrative being pushed to everyone everywhere and many people have lost their way to happiness. Life is not about competition and consumption………….it’s about redemption through Christ! Redemption through Christ……….then…………All Things Through Him! That’s all there is too it…………life is hard but your redemption is not complicated!

#138 mark on 10.20.19 at 10:53 pm

Well said, Garth. Investing is about fulfilling and supporting your goals, whatever they may be.

#139 SWL on 10.20.19 at 11:02 pm

I really appreciate all that you do for us and always look forward to future posts, but also wonder how you do it sometimes. No matter how or when this blog ends you have made a positive impact on my financial well being. I will be calling on you and your team soon for the reasons you just wrote about

Thanks

Scott

#140 Upenuff on 10.20.19 at 11:04 pm

So if we get a PC majority, does one back the truck up and load up on big oil stocks or has that ship sailed?
And any other outcome, just keep saving to buy an electric car?

#141 Mr Canada on 10.20.19 at 11:11 pm

Garth, we always remember the few idiots out there and can sometimes forget the other 98% we help every day.

#142 Megan on 10.20.19 at 11:59 pm

I appreciate your advice Garth. I keep a Word Document with tips that you provide. I’m 29 and in the last year I have opened up a TFSA and I now own $12000 in VGRO. A few years ago I honestly didn’t know that the TFSA existed. I want to save even more over the next few years, and I know I need to get some advice for how to invest. It is hard to know where to go. Thanks for the engaging economically-minded forum.

#143 Sydneysider on 10.21.19 at 12:19 am

#14 Russ

You can benefit from the $2000 pensions credit each year for withdrawals from your RRIF.

#144 Neo on 10.21.19 at 12:27 am

As a cyberspace expert I have 2 points to make.

If you are going to allow anonymous posts on the matrix, you are in for a world of pain. Unless you are an agent of the Canadian Security Intelligence Service collecting evidence for future prosecution.

Regurgitating the same message of diversification every day is pointless. Perhaps a weekly blog is more appropriate. Any fool can buy XBAL.TO and own a balanced and diversified investment portfolio.

#145 Lib on 10.21.19 at 12:38 am

Stock market is a scam, run by insiders.

Exactly the same as Bitcoin and the cryptos.

Dirt (RE), Gold, Silver are real.

The elite can crash Wall Street (bay street) whenever they see fit to do so.

Truth.

#146 Fortune500 on 10.21.19 at 12:47 am

Well, looks like a Trudeau minority tomorrow. I am certainly not a fan, but man, the conservatives really shot themselves in the foot when they went with Sheer. What an uninspiring candidate …. That, and the attempt to smear the PPC. Sad state of politics across the board.

PS, Garth keep on keeping on. You do a great job here.

#147 Ustabe on 10.21.19 at 1:32 am

Three things of interest to me at this moment.

1) The number of folks who read Garth’s post today and immediately went to the comment box to either give him further advice or to continue their personal internecine verbal spats is astounding.

B) Netflix. A show called the Laundromat. Meryl Streep, Gary Oldman, Antonio Bandaras…more. 2019’s Big Short.

III) A couple of years ago the topic was side gigs, how to make a bit outside of your regular job. I wrote about a couple of ruffians I happened to sit beside in a local bar who were small scale wild mushroom buyers. Their problem was getting seed money together. So I kind of became their silent investor and they take my money out into the bush and buy mushrooms from all the hippies.

My experience in the food service industry meant I could hook us up with a LA based broker instead of selling into Vancouver. More money in our pocket.

Looks like we are weathered out now and will fall a bit short of our target this year…slightly less than $200,000 minus expenses (air freight to LA) split 3 ways. Less than 3 months of activity. Of course we declare and pay taxes. And that is after I get my seed money back, btw.

This is the fourth year (I think, maybe 5) of this dubious partnership. So, not to brag (heh) but to point out that opportunity presents itself only to those who listen, are prepared to step outside their comfort zone a bit and who want it as opposed to whine about it.

Bonus Thought: Bulgaria. Upper-middle-income economy securely anchored in the EU. All you doomers who will be leaving after tomorrow should think about it.

#148 Mike on 10.21.19 at 1:41 am

One of the 99% who never comment here. I follow your advice for the most part and value it. I may disagree with on some things like the impact of foreign money on Vancouver real estate (it’s worse than you think) and whether T2 is the best choice for PM, but I value those differences of opinion. The only thing I haven’t got from this blog that I wish I had was a solution to raising a family in Vancouver without paying stupid high rent. Ten years ago four young adults renting a half duplex for $2000. Now with a family we’re cramped in a 400sq ft basement suite afraid to move because the same suite is 25% more expensive to rent and to get that extra bedroom we need will double our rent if we move. Maybe I haven’t read an answer here because there isn’t one… other than moving to the Sunshine Coast or Mission…

#149 CCS2CAN on 10.21.19 at 1:59 am

Please excuse the portion of the 1% of traffic which comments regularly and are nasty. There’s still 99% of us who come here to learn, and appreciate your time and willingness to help us with your wisdom.

Thanks again for your work.

#150 Jamie Dimon on 10.21.19 at 2:03 am

Garth, the blog has been a guiding light for me and my other. I hope you know for every one ahole that insults, bashes and terrorizes there are a hundred like me. So thanks, and keep em’ coming!

#151 Cdn Expat on 10.21.19 at 2:54 am

Thanks Garth and team for all that you do, keep up the great work.

#152 Stan Brooks on 10.21.19 at 3:11 am

#123 Shawn Allen on 10.20.19 at 9:25 pm

You are making no difference between savings and deposits/new money created when a new loan/new CREDIT is made, not from existing SAVINGS.

In your naive scenario if we sell all houses in Canada in 1 year with new credit, it is all savings.

New credit is not savings.

And what you describe is how banks work now, not how they always worked.

CHMC in your case ‘takes care of the risk’ while BoC provides ‘liquidity’ that should really be provided by savings. What does the bank do? Administers the sale and collects the profit. No skin in the game.

Now repeat with me: New Credit is not savings.

In the case of line of credit/HELOC etc, it is all new money made by the lender with a ledger entry, there is not even new/old deposits behind it.

Pathetic, naive, ignorant but persistent, the ideal debt slave.

Cheers,

#153 BillyBob on 10.21.19 at 4:02 am

Ahh yes, cue the usual “I don’t read them so go ahead close the comments” folks. Typically selfish self-absorption but such was it ever. How lazy (or slow a reader) does one have to be to casually abolish comments entirely rather than sift them for nuggets? (Referring to the readers, not our host.)

I actually have gleaned more than a few interesting and useful tidbits over the years from the comments. Among the vast numbers of oxygen thieves there are several posters who make valuable contributions, I occasionally find informative links passed along that I open in another tab, and so on.

I agree that the signal to noise ratio is pretty large but how is that different from offline life? As an individual in the real world thankfully I can largely choose to ignore the much larger percentage of fools, but I’m not sure that’s a solution on a public blog or even possible. Gonna get awfully lonely constantly transmitting a message with no way to receive a response. And I think you can forget about using some fancy technical solution to solve a human nature problem.

Regardless, thank you for everything you do.

#154 Steve French on 10.21.19 at 5:31 am

OK, I’ll admit it.

I lost my cool yesterday in the comments section, and was a bit hard on poor old Smoking Man.

I know …. I shouldn’t be making fun of the dumb kid at the back of the class.

Smokey: meet you at Casino Niagara and we’ll hammer out this debate about Steve Earle and Trump over a series of rusty nails.

We’ll invite Garth moderate, and Bandit can directly intervene if need be.

#155 Tron on 10.21.19 at 6:47 am

Quiet lurker here. Garth, I don’t always agree with your political posts, and that’s okay. But despite my distaste for some of your political positions and tax policy I am nonetheless thankful for the advice you and your colleagues give in respect of personal financial responsibility and investments. I enjoy reading your blog and check it nearly everyday. I also agree that the housing proposals of all the candidates, including Jagmeet and my own party, are dumb..
Thanks for your work,
Tron the social democrat.

#156 James on 10.21.19 at 7:04 am

I’ve said it before and I’ll say it again….Thanks Garth and the team for all you do.

#157 Mishuko on 10.21.19 at 7:18 am

Been “investing” since i started working. Started with a couple of hand picked stocks and had varying results… stumbled here one day and can say that the knowledge and perspective has and continues to give a positive influence on my life.

I steer away from the comments these days though…

#158 Tater on 10.21.19 at 8:05 am

Garth, I’m sure you’ve seen this at some point, but if not, enjoy. I’m sure by this definition you are an intelligent person. I try, but have some banditry to me.

https://qz.com/967554/the-five-universal-laws-of-human-stupidity/

#159 earthboundmisfit on 10.21.19 at 8:19 am

If the TMX is not up and operational in the next twenty four months, Gerry Butts will have penned Trudeau’s legacy as the PM who presided over the dissolution of the Canadian federation. After what he did to Ontario, you’d think people would have known better.

Thanks for the blog Mr. T. I was well into DIY ETF B&D before discovering your blog but the affirmation is nice for a Scot with short arms and deep pockets. It has been really tough hanging onto those Prefs though.

#160 Dharma Bum on 10.21.19 at 8:30 am

Garth,

Honestly, please don’t take the comments too seriously. I can assure you that, for the most part, the comments do not reflect the immense appreciation by the silent majority of your readers and followers for the advice and overall benefits acquired over years of reading this blog.

For the most part, the comments provide additional comic relief to the underlying seriousness of the daily topics discussed. Real estate acquisition, financial security, investment strategies, bankruptcy, retirement planning, political insanity, stocks, bonds, preferred shares, ETFs, and trailer fees are not exactly the stuff of excitement and humour.

Your writing style at least weaves in a sense of wry humour, sarcasm, and a general tongue and cheek witticism that is rare, if not non-existent, in an otherwise dry and boring, mostly technical field.

I think that your readers really appreciate that, and as a result, develop a habitual addiction-like desire to follow this blog daily (vs myriad others) that offer similar advice in a dry, overly technical, shallow, and excruciatingly boring manner.

When we comment, we’re just trying to be smart asses. Nary a one of us commenters can hold a candle to your writing style, skill, or sense of humour. We just mostly chime in for a reaction.

There is a multi-year running back story to many of the regular commenters. Fake personas, feuds, pseudo-intellectuals, bigots, naifs, moisters, cat people, the hopelessly misguided, dippers, Trumpsters, and those of us who are just making feeble attempts at trying to be funny.

All in all, the readers benefit from the blog. The comments are an addendum that, at worst, can make one wince here and there, sometimes provide a good laugh, but mostly add to the overall charm of the blog and can even lead to further knowledge every once in a blue moon.

Relax man, it’s all good!

#161 Jager on 10.21.19 at 8:42 am

I do not know with certainty what will happen in todays election. Only that Canada is becoming a divided nation on many levels.

It is certain however that our world is in a state of flux. Fundamental change is underway. The process of revolution is difficult (revolution is always followed by evolution) however I remain confident that something very positive is underway.

It’s time for the goodness in Humanity to awaken again. Time to dispel so many widely held (false) perceptions whose origins began in a cauldron of deception and lies.

#162 Dharma Bum on 10.21.19 at 8:44 am

#137 Terry

Life is not about competition and consumption………….it’s about redemption through Christ!
——————————————————————–

Hahahahahahahahaha! Now, I don’t care who you are, but THAT’s FUNNY right there!

https://www.youtube.com/watch?v=RFlCD5CYAcU

#163 NoName on 10.21.19 at 8:46 am

Addendum to that blue light rant from oder day.

https://www.nature.com/articles/s41514-019-0038-6

#164 Dan Griffiths on 10.21.19 at 8:52 am

Honestly Mr. Turner, I have no idea why you keep it up? You must have the patience of a saint, and a dogged determination about you? I enjoy your posts, but I rarely bother with the comments. Thanks for your measured and intelligent insights.

#165 Nick on 10.21.19 at 9:06 am

Garth,

Thank you for keeping this blog up and running. It’s no small effort that’s for sure!
I stumbled across your blog 12 years ago and have been reading it ever since. Back then I didn’t know squat about investing but I knew I had to do it. I was tangled up in high fee mutual funds from a TD “advisor” when I learned of you and came to you for free advice. For someone with less than $20K to invest and little knowledge that was a HUGE help. You didn’t sell me on ETF’s or life insurance but you did ask me questions that made me realize that investing isn’t that hard and that there are quite a few advisors out there that won’t put me first.

Today, I have a family and I’m happy to be one of your clients. We trust you with our money and the advice you and your team give. The continued efforts of this blog help young and old alike with understanding money, investing and real estate.

Nick

#166 Mona on 10.21.19 at 9:19 am

I recently had the unique experience of living for a long period of time in a country where wealth is NOT the norm. By that I mean that the vast majority live paycheck to paycheck while subsisting on their own efforts (farming, fishing, etc.). It was what we condescendingly refer to as “3rd world”

It was absolutely amazing to see the difference between us and them.

There was very little “envy” among peers there and it manifested in interesting ways.

For example, if someone managed to snag a new (to them) car, the attitude difference was striking compared to “Us”. Back here, if you compliment someone on their nice vehicle here you can expect them to puff up their chests and revel in their apparent “success”. (even if the crawled massively into debt in order to be owned by it)

By contrast, where I was in the “3rd world”, if you paid a similar compliment it was greeted with a polite “thank you” and a smile.

On the other hand, compliment someone there on the kindness of their family, or their eagerness to help without expectation of reward, or their kindness, and they beam with pride.

I can literally list dozens of other examples of a similar nature and the contrast between us and them is quite stark.

I leave it to you to guess who the happier group is.

Interesting experience.

We have been brainwashed by marketing to believe that success can only be defined by “stuff” and the envy it invokes in others.

It worked. Unless you are owned by an over priced house and car here, you are considered to be unsuccessful. How stupid.

There’s a lot more to say about this, but I’ll leave it at that for now.

Something to think about perhaps?

#167 Another Deckchair on 10.21.19 at 9:30 am

Dear Garth:

I’ll bite:

Flop wrote about the top salary companies in this post:

https://www.greaterfool.ca/2019/10/18/danger-danger/#comment-671291

Ok. Went through that company list when Flopper posted it. For my own enjoyment, not to brag. But, with the topic of this column in mind, here goes.

I’ve been approached by two companies on that list, including one co-founder. I’m on a first name basis with one of the VPs of another. (we worked together on 3D graphics before he became a VP)

When I was young, when the phone rang (sometimes from one of the then top-10 companies), I’d pick it up and say “sounds interesting” so we did move around the world a bit. However, when teenagers are teenagers, one has to listen to them, and the moving around the world stopped. Gave the teenagers a sense of place and time.

Ok. I’m not interested in moving. I work in a job that pays me in the top 5%, my wife does the same. We live a very simple life. I work right now because I want to; I get to implement MY ideas, on my own schedule, and the customer is very happy to get them.

We have a small house, one car, and (thank goodness!) a dog. We also now have a new to us sailboat to slowly travel around in.

We have more than enough money for our current lifestyle. I’m not sure what the total “net worth” is, but, so long as there’s money to pay bills, who cares??

YOU, Garth, with your blog, and your three of your weekend blog warriors, give advice that is priceless. It’s up to your readers to open their ears and LEARN FROM THOSE WHO KNOW.

You can’t push a bit of string, and sometimes you can’t teach people to pull that bit of string. You are giving, for free, knowledge.

Thank you for your generosity with this blog. Thank you for your generosity throughout your life in giving back to Canadians. You are truly a good person.

M60ON

#168 IHCTD9 on 10.21.19 at 9:32 am

#162 Dharma Bum on 10.21.19 at 8:44 am
#137 Terry

Life is not about competition and consumption………….it’s about redemption through Christ!
——————————————————————–

Hahahahahahahahaha! Now, I don’t care who you are, but THAT’s FUNNY right there!

https://www.youtube.com/watch?v=RFlCD5CYAcU
____

Speak for yourself Mr. Bum.

You definitely don’t speak for me on this one, nor for (more than just a few) others here on the GF.

Live and let live my Man, – not everyone thinks the way you do.

#169 Calvin on 10.21.19 at 9:43 am

Please keep the site going as I find it very valuable and I am sure others do too. Losing the comments section though would be no big loss and would save you a ton of time (and stress I am sure).

I have been reading this site for at least 5 years now and I like how it keeps me grounded and focused as everything around me keeps telling me otherwise. I have probably wandered into the comments section only a handful of times and for every one decent comment, there seem to be at least 20 that are a waste of space. Some people seem to use it as their own blog even.

So drop the comment section, people with a serious question can still email you and with the time you save filtering the comments section, you will be able to reply to more of them, or feature more on the site.

Thanks for great site.

#170 Captain Uppa on 10.21.19 at 9:46 am

Hey Garth, your blog helps me kill time. That’s as far as I will go. All the other sucking up on here makes me wanna puke! Having said that, 60-40 is the way to go, baby!

On the topic of politics, I have really noticed the toxic nature of divisiveness that left leaning folk have been warning about. I used to brush it off as a centrist, but it’s become very apparent to me during this election. There is a lot of Trump Nation in Canada and it scares me.

#171 Dr V on 10.21.19 at 10:07 am

152 Stan

So how does my bank account know if my pay cheque is from someone’s savings or is new credit?

Either way it seems to work for me.

#172 Jmr on 10.21.19 at 10:13 am

One of my favorite posts ever, it will get a bookmark. Thank you Mr. Turner. Jennifer

#173 IHCTD9 on 10.21.19 at 10:18 am

#148 Mike on 10.21.19 at 1:41 am

Maybe I haven’t read an answer here because there isn’t one… other than moving to the Sunshine Coast or Mission…
_____

See, you already have the answer – move where pastures are greener. How many folks living in Canada right now have traversed entire Oceans to seek a better life?

My Grandparents moved their 9 and 10 person families 5800 km across the Atlantic looking for a better life.

My Parents then moved again, 1500 km across Ontario looking to improve once more.

Ms. IH and I have stayed put because the math is still working out here. From the looks of it – the math in YVR/GTA just keeps getting worse.

At least do it for your kids – I’m super grateful my parents moved out of what is a still a slowly dying northern city to where we are now.

#174 the Jaguar on 10.21.19 at 10:22 am

Speaking of appalling behaviour, how about that Qantas dreamliner flight of 19 hours and 16 minutes?
Given the behaviour of most passengers on flights I have been on recently you couldn’t pay me to be stuck in the air for that long with that many misfits. Pity the poor pilots all scrunched up in the nose of the plane for what must seem like an eternity. It must be unhealthy. The worst flight is the red eye to Toronto which leaves around midnight from Calgary. The worst flotsam and jetsam infest that flight, all of them on the way back to their ‘hoods’, and I ain’t talking Oakville. They can’t even spell etiquette.
As for other obnoxious blog behaviour, why not kill the multiple posters, Garth? Some of them act like it’s their blog at times.
Conservative majority today unless treacherous British Columbia caves to their usual impulses.

#175 Sideshow Rob on 10.21.19 at 10:28 am

A minority government is looking very likely at this point. The NDP will hold the balance of power. So a vote for the Libs is a vote for NDP policy. Let that sink in…
Alberta will get serious about separation if that happens.

#176 CHERRY BLOSSOM on 10.21.19 at 10:33 am

If Trudeau wins this election the vast amount of money that will leave this Country will bogle your mind. Not unlike the last time he won…over 70 billion left the oil industry. Can you say DEFICIT??

#177 Shawn Allen on 10.21.19 at 10:40 am

New Money versus Old Savings?

#152 Stan Brooks on 10.21.19 at 3:11 am
#123 Shawn Allen on 10.20.19 at 9:25 pm

You are making no difference between savings and deposits/new money created when a new loan/new CREDIT is made, not from existing SAVINGS.

***********************************
Stan, thank you. In my example Frank’s paid for house of $500k was wealth but not savings. The banking system and new credit allowed him to turn that into $475k of cash savings in a bank account (after real estate and other fees). I don’t think he is concerned with tracing how those dollars came about and whether they somehow can trace their pedigree back to gold coins or something.

Money is a very very complex thing and is indeed an intangible. The true physical real world savings are all the buildings and roads and factories and much more.

Example: A farmer works hard to grow corn and then he and his family eat the corn. No savings generated. The farmer works hard and cuts trees and saws them and makes a barn that will last years. That is real savings.

In the net humanity owes nothing to anyone outside this earth. Yet look at all the buildings and roads and factories and cars and on and on. All paid for by humanity at the moment of creation (who else paid?). Humanity has massive net savings and zero net debt as a species. You as an individual however may owe me a lot indirectly since I own bank shares. Thank you for that.

#178 How banking works on 10.21.19 at 11:07 am

Hey Shawn Allen
Interesting post, yes very simple example and I appreciate your time to post.
My take is what about the other debt that people buy stuff
So Canadians owe total 1,9 trillion and in mortgage 1.3 trillion
So the balance did not go to someone savings it is just stuff.
As Garth has pointed out a 20, 30 , 40 percent housing correction and those $1,3 trillion are toast. Everything is rosy until the music stops.

#179 CJ on 10.21.19 at 11:10 am

Time to shut off the taps to Quebec, a province that adds nothing to Canada but takes everything away from Alberta.

#TrudeaulessTuesday is coming

Good riddance to the worst PM since Pierre.

#180 IHCTD9 on 10.21.19 at 11:14 am

#170 Captain Uppa on 10.21.19 at 9:46 am

There is a lot of Trump Nation in Canada and it scares me.
___

Funny, I agree – but that does not scare me at all.

Most of ’em understand how the system we have works, and will be voting for AS.

#181 leebow on 10.21.19 at 11:16 am

Garth,

That’s the environment you operate in. More people, more idiots. Doesn’t scale too well.

Perhaps everybody should look in the mirror and ponder.

#182 Westcdn on 10.21.19 at 11:17 am

I will be heading off to do my civic duty and cast my ballot. It is a joke because my riding only has 3 parties running – Conservative, PPC & NDP. Yeah you read that right. This riding is so blue, the Liberals didn’t bother to run a candidate. I am starting to think something stinks when it is party members who elect the “leader” of their party. It feels like an old boy club to me. Maybe the British parliamentary system has merit where the MP’s elect the Prime Minister but then I watch the shenanigans of Brexit. The pursuit of power and influence is an amazing thing to watch as it converted to wealth. It is dangerous to poke these players with a stick.

In stock market parlance, I would call today’s real estate prices a dead cat bounce. The difference being RE plays out in months where financial markets play in hours/days. I don’t believe the Central Banks should cut interest rates. I think digging our debt hole deeper is dumb unless you want MMT as a monetary policy. At least we would all be comrades except for our omnipotent leaders. I faintly recall stories about how loutish/uncouth Stalin was and his sexually deviant midget accomplice who was in charge of national security. Count on me to resist that future.

I think the Canadian GNP will be good until Fall 2020 despite slowing growth and higher inflation. I think banks are nervous as some players are weak – think Leeman Brothers and cash is king. Hopefully I am wrong yet, like climate change, it is too lousy an outcome to ignore. I think good preferreds are things to own because I don’t think governments want inflation to run wild.

Nothing like launching a climate change war to solve that problem.

#183 Caledondave on 10.21.19 at 11:21 am

Thank you Garth for the lecture. We all need a tune up from time to time. Keeping up with the Jones may seem important to some, but I think living within your means is the most important. To heck with the “influencers” out there. Your advice is not to be ignored or taken lightly. You are just trying to be a good shepherd.

By the way…your doggie photos are priceless and make me smile.

Keep up the good work!

#184 Jesse on 10.21.19 at 11:37 am

As part of the “99%” that doesn’t comment or even read the comments. I come to this site for the content provided and I find it greatly educational and entertaining. I’d like to thank you Garth and guest bloggers and let you know all the wisdom and the countless hours put into the blog is not unappreciated nor taken for granted.

#185 re., CJ on 10.21.19 at 11:40 am

‘Time to shut off the taps to Quebec, a province that adds nothing to Canada but takes everything away from Alberta.’

lol, Quebec runs a pristine show- have you seen provincial balance sheets of late?

Alberta? what a shit show…you chaps voted the NDP in? REAP WHAT YOU SOW

#186 IHCTD9 on 10.21.19 at 11:41 am

#133 Bob on 10.20.19 at 10:20 pm
They fail for two reasons:

1) They love money and pursue it above everything else. The Proverb says that “The LOVE of money if the root of ALL evil.” People love money even more than they love themselves or love others.
____

A good modern revision to this ancient piece of wisdom (for Canadians) would be:

The lust for a lifestyle (or even the impression given thereof) is the root of all insolvencies.

Folks don’t think you’ve made it until you own some RE, and a nice car (or truck), and go on a couple sunny vacations every year.

All of these things can be had via borrowing – hence the giant hole we are in.

You’re nothing but a tool if you can be so affected by the expectations of your peers. You don’t need a clique to join, you need some bloody self confidence/respect.

If you can’t find a reason to feel happy and content without the approval of others, please move to the Boreal forest before you spend yourself into a hole you’ll never climb out of.

#187 NoName on 10.21.19 at 11:44 am

#173 IHCTD9 on 10.21.19 at 10:18 am

Everything is slow grinding to a halt, here where we are was ok 12-13yrs ago then slowly small stores and pa and pa business are leaving, empty store fronts, even vape shope could not make it…

Politicians are detached from what is going on that it’s not even funny any more. I gues by being bombarded with bs from lobyeests doesn’t suprise.

I wish I can get that deal business lunches during work hours, insted I have to fight with robots. #$&@$ never stop working, but to reduce to complete task lot more often that it would be tolerated for person to do that…

#188 NoName on 10.21.19 at 11:46 am

#$&@$ never stop working, but to reduce to complete task lot more often that it would be tolerated for person to do that…

Should read

#$&@$ never stop working, but do refuze to complete task lot more often that it would be tolerated for person to do that…

#189 Classical Liberal Millennial on 10.21.19 at 11:58 am

I’ve suggested this before and I’ll keep at it. Make comments linked to someone’s Facebook or Google account. Something that will show a real name or at least not some name that we can type in however we want each time. When your identity is tied to your words and you aren’t anonymous, it’s not as much the Wild West like Reddit and Twitter.

#190 John R on 10.21.19 at 12:15 pm

Garth,
I think you’ve realized now how ridiculous comment sections are on the internet. Everyone hiding behind anonymity throwing insults around like the rest aren’t human beings. Every social media site has this problem and the smart people stay away.
I, for one, like to ingest your content, think about it and move on without a thought of leaving a comment because the discussion gets nasty quickly. I think most educated, smart people do that and you end up with the rest for the majority.

I wonder if you thought about making the comment section more of a Q & A for people to get questions answered. Maybe you pick a few from the masses and post an answer for them and that is your new comment section. Keep out all the nonsense and noise. This way people get to read your daily post, gain some insight and then come back later on to read your answers to readers questions. Just a thought. Keep plugging away!

#191 Canadian Moose on 10.21.19 at 12:22 pm

Couldn’t agree with you more Garth. This blog is unfortunately a microcosm of our current society. Sad….

#192 Daniel Bouchard on 10.21.19 at 12:25 pm

Garth, just kill the comment section, I sure don’t read it as most of the time its just garbage from frustrated little people. Don’t understand why you self flagellate freely. Take the time to enjoy life with the ones that matter most.
Cheers.

#193 IHCTD9 on 10.21.19 at 12:28 pm

#175 Sideshow Rob on 10.21.19 at 10:28 am
A minority government is looking very likely at this point. The NDP will hold the balance of power. So a vote for the Libs is a vote for NDP policy. Let that sink in…
Alberta will get serious about separation if that happens.
___

I still remember the $h!t show that transpired when Layton held the “balance of power” when Martin was PM. Martin couldn’t scratch his @ss without having to first give Layton a few hundred million for the privilege.

I think this likely scenario would be worse than if the Libs won a majority.

The silver lining is – if a NDP/LIB combo government managed to last 4 years – Canada’s finances would look like it went 12 rounds with Mike Tyson with its hands tied behind its back.

Things aren’t tough enough yet – having Trudeau and Singh share the Federal ATM card would go a long way to getting us there.

#194 Justin Beaver on 10.21.19 at 12:54 pm

First off, a genuine thank you for this blog and its contributors.

I see the testosterone and the negativity in the comments section too, but I guess I have a different take. I think it’s encouraging that people have so much passion about our politics and our world.

I think people can get too caught up in political theater and forget that we all want mostly the same things. Prosperity and peace. Be polite, people. But debate is very healthy, and I, for one, am thankful for this forum.

Will be interesting to watch the results come in tonight. Personally, I’m hoping for a minority government. I didn’t like any of the 3 major party platforms so I’m rooting for political stalemate. If I had to pick a PM out of the big 3, it’d be Jagmeet. Too bad the NDP platform was the worst of the 3. I would like to see fiscal responsibility, and no more government pumping of real estate.

#195 BMetal on 10.21.19 at 12:58 pm

Garth,

I’ve been reading for a decade and never commented. I can’t explain how important and positively life altering all the education and insight has been.

Don’t let the 1% (of visitors – commenters) get you down. The silent 99% keeps coming back for the undeniable value that you create (gratis) and the spirit with which you present it.

Keep it up. The other 99% appreciate it every day!

#196 Sail Away on 10.21.19 at 12:59 pm

Garth, thanks for the blog AND the comment section. I greatly enjoy both. Comments can be argumentative and shallow or can give a helpful perspective- sometimes from the same poster.

As another poster mentioned, you never know where a gem will appear.

#197 oh bouy on 10.21.19 at 1:10 pm

DELETED

#198 Sail Away on 10.21.19 at 1:12 pm

I do wonder why people favour shutting down the comments.

If they personally don’t like them, isn’t the simple solution to not read them? Why would anyone propose impacting others?

If you choose to shut down the comments, that’s entirely your decision. I’d be sad.

#199 Sold Out on 10.21.19 at 1:15 pm

#193 IHCTD9

Hoping for a financial apocalypse so that a new fiscal saviour can rise? I doubt that the evangelicals’ hopes for the reappearance of their messiah has an economic parallel. Monetary success=/=religious devotion, although some people (grifters) try to conflate the two.

#200 Sail Away on 10.21.19 at 1:22 pm

#170 Captain Uppa on 10.21.19 at 9:46 am

On the topic of politics, I have really noticed the toxic nature of divisiveness that left leaning folk have been warning about. I used to brush it off as a centrist, but it’s become very apparent to me during this election. There is a lot of Trump Nation in Canada and it scares me.

————————————-

There’s plenty of toxic divisiveness on all sides, Uppa. No more or less on any side.

#201 tccontrarian on 10.21.19 at 1:43 pm

You may have noticed…

I’ve not been around ‘insulting’ you or your gurus, Garth.
When you denigrade any inconvenient view of the world as the domain of ‘conspiracy nuts’, I know you have some blind-spots (I suppose we all do, to a degree).

But I will repeat it one more time: the next ‘correction’ (or crash), likely to bottom some time in 2021, will be so severe and the losses to portfolios so great, that historians will have to rename the GFC of 2008-9; probably GFC-I and GFC-II (just as they renamed “The Great War” as WWI, after WWII happened)

But I’m just a ‘conspiracy nut’, so what do I know?

tcc

#202 Westcdn on 10.21.19 at 1:44 pm

When I picked up my ballot there was a Liberal candidate but none for the Bloc. I had unexpected choices. I voted to stand strong as a tribe.

#203 Shawn Allen on 10.21.19 at 1:53 pm

#178 How banking works on 10.21.19 at 11:07 am
Hey Shawn Allen

Interesting post, yes very simple example and I appreciate your time to post.
My take is what about the other debt that people buy stuff
So Canadians owe total 1,9 trillion and in mortgage 1.3 trillion
So the balance did not go to someone savings it is just stuff.
As Garth has pointed out a 20, 30 , 40 percent housing correction and those $1,3 trillion are toast. Everything is rosy until the music stops.

*******************************
Thank you for thinking and commenting. Many here are willing to comment but refuse to ever rethink their position.

I was not making any statement on whether the amount of debt is rosy or dangerous.

Simply, that the debt is owed to someone and that someone or corporation considers that receivable as part of their savings. Therefore total Debt in the world cannot exceed total savings.

I also alluded to how banks create a deposit in the name of the borrower when a loan is initiated. Step 1: Borrower’s net worth unchanged and he has a savings deposit and a loan liability. For the bank the loan is funded by the deposit, no money has left the bank.

Step 2: The loan is spent on a house or on junk, does not matter to my example. The deposit gets transferred to some corporation’s or persons bank account, likely at a different bank. (Not likely taken out in paper cash but that does not matter).

Now the borrower has a liability for a loan and a house or some purchased junk. If junk his net worth has decreased. Someone else (a person or corporation) now owns the deposit and no longer owns a house or the junk. Their net worth is probably unchanged.

The lending bank must have cash on hand to send the deposit to the bank of the seller of the house or junk and the lending bank now wants to attract a new deposit to fund the loan.

For the banking industry as a whole, the deposit never leaves (unless taken out in cash) and so the deposit can fund a loan at the purchaser’s bank.

Balance sheets balance. When someone has a debt, that is someone else’s asset.

#204 Malio on 10.21.19 at 1:56 pm

I love the blog and read it every day. I’ve always found it informative and entertaining and I hope you keep it up and running, regardless of the handful of trolls in the steerage section. I think one of the reasons that most people don’t understand our taxation as it applies to different revenue streams and applications is that our government makes it difficult for the majority to grok. If there was more transparency – for example, the CRA website is a joke – it would be easier. Maybe that’s just the way the powers that be in our country prefer it.

#205 D on 10.21.19 at 2:03 pm

I think you’re so right. For all of the financial things you can do wrong there’s someone who appears credible in person or on line who will promote them. I’ve learned the hard way by investing in balanced funds for years, all of which I looked at ‘long term’ as advised, until someone challenged me to consider their MER’s. I was being bilked for years.
Then I made the mistake of investing in single stocks I was ‘informed’ about, only to learn what I thought added value to those stocks wasn’t valued by other people and I lost some money on that.
Now I only invest in low-cost funds which have paid regular dividends for a long time. It is bizzarre to me that people follow stocks such as Apple and Google and others who have, apparently, made historic profits, yet have not paid investors a dime in dividends. To me it’s a hoax, but I can’t help but think I’m wrong because so many people are continually talking about them. Am I wrong? What am I missing?

#206 RE_Investors on 10.21.19 at 2:13 pm

I think we will see a very large amount of Real Estate listing terminations, then price adjustments higher tomorrow.

Use this to check it out today and then tomorrow.
https://www.bungol.ca/map/43.675818&-79.545801&12

All based on the party’s promises to get votes.

#207 crowdedelevatorfartz on 10.21.19 at 2:28 pm

@John from Mtl

So much for the Bloc not wanting a “Nation”

https://ca.reuters.com/article/domesticNews/idCAKBN1WZ0ND-OCADN

#208 Max the Tax on 10.21.19 at 2:31 pm

What do you make of this Garth:

“Canada has the fifth most ultra-high net wealth individuals on the planet. In this nation, 10,000-odd families collectively control $1.053 trillion dollars. This is obscene — and a policy failure.”

are these the meanderings of an ingrate billionaire heir? or is there something more to it?

from:
https://skystatement.com/its-time-for-one-per-cent-families-like-mine-to-pay-a-super-wealth-tax/

Maxit!

#209 IHCTD9 on 10.21.19 at 2:32 pm

#199 Sold Out on 10.21.19 at 1:15 pm
#193 IHCTD9

Hoping for a financial apocalypse so that a new fiscal saviour can rise? I doubt that the evangelicals’ hopes for the reappearance of their messiah has an economic parallel. Monetary success=/=religious devotion, although some people (grifters) try to conflate the two.
___

The only financial savior I’m waiting for is a scare big enough to send Canadians back to looking at their pile of debt, and thinking maybe it’s time to start knocking it down.

If they do, that’ll murder the economy because it’s 60%+ consumer spending.

That then, will scare the crap out of whatever Party is running the show at the time – and hopefully – HOPEFULLY, both Politicians and Citizens might agree
that this giant pile of debt needs to be tempered a bit.

#210 James on 10.21.19 at 2:34 pm

#193 IHCTD9 on 10.21.19 at 12:28 pm

#175 Sideshow Rob on 10.21.19 at 10:28 am
A minority government is looking very likely at this point. The NDP will hold the balance of power. So a vote for the Libs is a vote for NDP policy. Let that sink in…
Alberta will get serious about separation if that happens.
___

I still remember the $h!t show that transpired when Layton held the “balance of power” when Martin was PM. Martin couldn’t scratch his @ss without having to first give Layton a few hundred million for the privilege.

I think this likely scenario would be worse than if the Libs won a majority.

The silver lining is – if a NDP/LIB combo government managed to last 4 years – Canada’s finances would look like it went 12 rounds with Mike Tyson with its hands tied behind its back.

Things aren’t tough enough yet – having Trudeau and Singh share the Federal ATM card would go a long way to getting us there.
____________________________________________
Agreed you are 100% correct sir!
Tomorrow we will wake up to either a slow burning down of our equity with a PC minority or a fast California style Santa Anna free for all with Red Mr Socks2 and his Orange friend Mr Singh. The only thing to come out of this is that Trudeau the favourite shinning young son of the left is now a tarnished and diminished politician here and around the world. No one with credible and reputable standings in the world will deal with him anymore. He is now a political pariah which oddly enough is an Indian tern for untouchable! Who would have known!

#211 Brett in Calgary on 10.21.19 at 2:36 pm

#193 IHCTD9 on 10.21.19 at 12:28 pm
#175 Sideshow Rob on 10.21.19 at 10:28 am

Things aren’t tough enough yet – having Trudeau and Singh share the Federal ATM card would go a long way to getting us there.
====================

Damn, when it’s phrased like that it really sounds awful. Federal ATM… that is funny! Cha-ching!

Garth you know the valuable service you provide, so can the steerage section if you need/want to. I wouldn’t blame you one bit, and wouldn’t mind as well. Trolls are everywhere on the IoT, and they are truly brave behind pseudonyms.

#212 Sail away on 10.21.19 at 2:39 pm

#205 D on 10.21.19 at 2:03 pm

It is bizzarre to me that people follow stocks such as Apple and Google and others who have, apparently, made historic profits, yet have not paid investors a dime in dividends.

To me it’s a hoax, but I can’t help but think I’m wrong because so many people are continually talking about them. Am I wrong? What am I missing?

—————————————-

D, there’s no hoax. If you had invested in either Apple or Google 5 years ago, your investment would be worth 2-2.5x now.

Sometimes growing companies choose to re-invest profits into the company. No secrets here.

Warren Buffett’s rule of thumb says that dividends should not be paid if a company can retain/reinvest them and increase their earnings by double the reinvested amount. If a shareholder needs cash, he can always pay himself by selling stock.

Buffett’s Berkshire has never paid dividends because they can earn more for shareholders by retaining cash than paying it out.

#213 Bob on 10.21.19 at 2:54 pm

Mr. Garth,

A little something I learned from my Canadian Army days….

“…keep your powder dry and don’t quit!”

#214 JonBoy on 10.21.19 at 2:55 pm

Garth,

I think you’re a balanced voice with a balanced plan that will work for anyone. You have (rightly so) espoused a financial plan that requires minimal actual knowledge, moderate and continuous returns and the ability to go through big upheavals without destroying gains for long. While the minutiae and tweaking you do (as an adviser) is not so casual or simple, the general details are good enough that we can all do it and expect very similar results. That is much appreciated and please keep doing what you do! Heaven knows, sane voices are severely lacking these days (in every aspect of life). I’ve never seen such polarization!

Perhaps what is sometimes forgotten is that the road to financial independence is not only on the path you offer and teach. If commentators on here are to be believed, you can do it other ways. I know you know this and I know you also tend to dismiss it as the majority of those paths do require some (more?) knowledge than most people have, a lot more diligence and certainly the willingness to accept larger swings (both good and bad).

Most, if they were honest, would admit that they have lost big sums in gaining experience. My best year? 65% up. My worst year? 65% down, the year following. That’s why I stopped, because I learned I can’t time the market, my “knowledge” (ignorance) is insufficient to match or beat the pros, and the market doesn’t even have a consistent, logical reaction to world events.

But that doesn’t mean it can’t be done a different way or that the other ways are any less valid. They just require more work, generally speaking, and who wants more work? I’m sticking with a basic B&D portfolio!

All the best and keep up the good work that you do, that saves us from having to do more ourselves, for which we pay nothing except the occasional accolade from the bleachers…

#215 Ontario Proud on 10.21.19 at 2:55 pm

DELETED

#216 Scott on 10.21.19 at 2:58 pm

Take your own advice Garth and walk the dog!
You do more than enough for those who choose to come to your blog (especially given your modest aka non existent salary).
The commenters get the comments section they deserve.. If it gets to the point that it’s too egregious or time consuming/costly to police, just shut er down.

#217 conan on 10.21.19 at 3:28 pm

#191 Canadian Moose on 10.21.19 at 12:22 pm
Couldn’t agree with you more Garth. This blog is unfortunately a microcosm of our current society. Sad….
———–
The blog comments here are Grey Poupon compared to the CBC website comments.

#218 The Wet One on 10.21.19 at 3:29 pm

Well said Garth.

Good mojo here.

#219 Not So New guy on 10.21.19 at 3:37 pm

Be careful out there, folks. One thing you can do is keep only a small amount of cash for the accounts that are accessed online. Also, keep your credit limit low for credit/debit cards you use online. I know BMO will notify me of a transaction above X amount of dollars (a number I can choose relative to my spending). This notifies me right away if someone is making a large withdrawal

Banks deny compensation when hackers steal customers’ money

Financial institutions should be liable when customers lose savings, policy researcher says

https://www.cbc.ca/news/business/banks-deny-compensation-online-fraud-security-1.5322982

#220 derkavich on 10.21.19 at 3:43 pm

What I do with the comments section is hit the search and look for ‘- Garth’

Garth saved me from purchasing a house in ’17. It is too bad I can’t explain to people that being a house owner is a luxury, not a right.

Neo-liberalism I suppose, but this blog is about dogs and Canada, not philosophy.

Garth I wish I was older to supported you in parliament. Garth actually showed he cared for his ridings.

#221 CJ on 10.21.19 at 3:45 pm

#185

Quebec runs a pristine show …

Yep, those balance sheets look great with all the transfer payments. $7 day care is great … on Alberta’s dime!

Quebec is a drain on Canada. Always will be.

#222 Giver - AB on 10.21.19 at 3:53 pm

Garth –

I’ve been reading your blog regularly for about 6 years now and value the advice you and your colleagues offer out of the goodness of your hearts. While I don’t always agree with your perspectives, I at least find them thought provoking and worth mulling over. You do Canadians a service with your blog and you’ve had a meaningful impact on my family.

Thank you for what you do.

Cheers.

#223 Kurt on 10.21.19 at 4:10 pm

First time poster here. Been reading your blog on/off for 6 years. Why worry about the vocal minority? Burn down the comments section if it’s a pain! But remember, as you said, there is a silent majority reading this, who likely understand your POV, appreciate it, and want to hear more of it. It is hard to find balanced, logical investment thoughts and advice, mixed with current events and how it impacts investing, specific to Canada. I hope you keep it up. I don’t read the comments anyway..

#224 crazyfox on 10.21.19 at 4:51 pm

#68 NoName on 10.20.19 at 4:26 pm

There is some psychology to it, but more sociology (conflict theory, not Karl Marx’s earlier macro class conflict theory but his later stuff, the micro) and spirituality. Anyone who’s ever in depth explored the solutions to war and search for lasting peace will touch on common themes. With the help of other past writers from the oldest like Abraham touching on ending the conflicts within himself enabling a close connection with God, to the modern age that breaks down conflict as an offense between human beings best described as a form of discrimination with the ideals and practices of inequality fed by superior/inferior (self esteem, best explored or understood in psychology) at the root, it really is the theme of peace and war.

Equality + forgiveness/mercy + love + oneness = peace, whereas inequality (discrimination fueled by superior/inferior) + grudges/intolerance/revenge + hatred + division = war

This isn’t the genre of conversation for this blog obviously, but today I’ll make an exception because a quick exploration of offensive online behavior might do us some good. Besides, there’s the smell of blood in the air from hard fought elections and we need to heal up our hurts. When we think about it, we know that all offensive actions begin with the ideals and practices of inequality (superior/inferior) but what about the “reactions” to an offense?

There are 4 general reactions to every offense, 2 by the victim and 2 by the offender. The 2 general reactions by the victim are:

1st: – feeling of worthlessness, 2nd – looking for justice,
damaged goods, self blame, revenge, tit for tat, shame, low self esteem, cursed payback, self esteem
beating themselves up, world’s healing but potentially
out to get them, conflicted, looking to offend the
inferior offender. Conflicted,
superior.

The 2 general reactions by the offender are:

1st – regret, shame, humility, 2nd – Feeling of power,
self loathing, damaged goods, control and superiority
feeling of worthlessness, over the victim, wants to
low self esteem, beating feel it again. Remorseless,
themselves up, no empathy. Narcissistic, conflicted, inferior. conflicted, superior.

Each general reaction has at least 3 things in common:

1) Both the victims and offenders in these cases idealize and/or practice the ideals of inequality.
2) The individuals in all 4 general reactions are conflicted, either beating themselves up, or looking for a fight.
3) The individuals in all 4 general reactions all have one or more false beliefs. (eg. The belief in inequality itself).

Note how the 1st reaction of the offender is the same as the the 1st reaction of the victim, classic self victimization, born out of inferiority, the inability to treat one’s self as an equal, refusing or unable to understand that our physical, mental, emotional and spiritual differences don’t give us any less or more value/worth than the next individual or group even though the world continually tells us this isn’t so.

What are the reactions of those observing offenses from a distance? Do we treat the victims and offenders as equals, show empathy towards both, or do we devolve with offenses of our own, having been victimized ourselves in the past and sympathizing with revenge or connecting with superiority over not just with the offense but the offender?

We can’t fight fire with fire (well, there are back burns :). I’m not saying we shouldn’t want justice or punishment, I’m saying look at the motives behind why. Look at what drives peace and war and tell me the way to war (inequality, the inability to see any or all others as equal to ourselves in terms of value or worth regardless of our differences) will somehow lead to peace. It will only lead to more offenses and conflict.

What’s the best reaction? Revelation of truth, accurate information in it’s full context and in this case, nothing changes, it’s still the ideals and practices of equality achieved only through love for all others, forgiveness, oneness and if practiced one will find peace. Why, because it works.

There’s much more to this obviously. It’s more messy, not the cut and dried duality I’ve laid out here (often it’s a blend) and the practice of equality, although it works to achieve peace, in practice is sometimes more easily said than done. Our environments, our concepts of ownership in terms of what we value, there’s so much more to explore, but these are the basics. It’s mental health 101, again, not exactly the genre of discussion on this blog but when the host has to say that visiting to brag and fight is, well, sad, I can’t help myself mainly because I know the prevent and cure on this stuff, its not as commonly understood as one might think and it has served me well.

#225 crazyfox on 10.21.19 at 4:59 pm

Delete my last entry Garth if you prefer. I didn’t get separation between the 2 reactions of a victim/offender making it confusing, not the right forum for this comment.

#226 Barb on 10.21.19 at 5:09 pm

Increasingly, I’m embarrassed by the rabble that seems to be ever more present in the Comments section.

The envy of the obviously younger set has become malicious, often aimed disgracefully at our host and his colleagues.

I remain grateful for Mr. T and his contributors’ ongoing efforts to help us get our financial lives in order.

Those who aren’t grateful for this blog should be ashamed. Show some dignity and respect. And go away.

#227 Eric on 10.21.19 at 5:34 pm

Keep doing what you do. I take your advice to heart AND rarely read the comments. Thanks.

#228 Robert Turpin on 10.21.19 at 6:41 pm

Hi Garth
You are a great and gracious teacher.Thank you for all the superior advice.You make a positive difference in our lives.

thank you

#229 Ryan on 10.21.19 at 7:00 pm

I look forward to reading your blog every work day. It gives me something to look forward too. Thanks again,

Ryan

#230 Sail away on 10.21.19 at 7:50 pm

#225 crazyfox on 10.21.19 at 4:59 pm

Delete my last entry Garth if you prefer. I didn’t get separation between the 2 reactions of a victim/offender making it confusing, not the right forum for this comment.

———————————

Thanks for the clarification, Crazy; without that, I would never have figure out what you were trying to say.

#231 CHARLES SCALING on 10.21.19 at 11:04 pm

Dear Garth, I’m not going brag, complain, or any other negative stuff.
I really enjoy reading your blog and I am following your advice when it comes to investing.
Thank you very much, regards, Charlie

#232 Working the Night Shift on 10.22.19 at 2:55 am

Been reading the blog for a few years- this is my first time commenting. Your insight was instrumental to me when it came to tweaking my RRSP. The fact that you share your knowledge via this blog on your own time (and for free) is greatly appreciated and I really wish I had found the blog sooner. I usually pass on the comment section.

#233 CowgirlYYC on 10.22.19 at 9:46 am

I’ve been a faithful reader and implementer for as long as I can remember. My whole family reads your blog. I think I commented once 5 years ago and then never read the comments again. I look forward to your blog post every day and the advice you share gives me confidence in my DIY portfolio. Thank you!

#234 E on 10.22.19 at 12:51 pm

Cheer up. Arnold still envies your abs.