The F factor

The saga of F has been well documented here. Since he died more than five years ago, Jim Flaherty’s name is rarely heard. Too bad. He had some guts. And while in my final political days he joined the forces repelling and ejecting me, respect is due. The elfin deity left more good than bad behind him.

That brings us to the TFSA. Readers of this blog and its precursor helped me craft a far-reaching report on tax reform in 2007 which was presented to Flaherty. A retirement vehicle modeled on the American Roth IRA was one of the suggestions. F adopted it in the 2008 budget and it became law the next year.

So here we are. Ten years on. Already there are suggestions bubbling up that a collar should be put on this thing. So time for a blunt review.

My original idea was simple: let people put after-tax money into a vehicle where it can grow free of tax until they retire, providing an unreported income stream. Make it democratic. Not linked to income. Everybody gets the same ability to contribute. Because no tax deduction is earned when funds are deposited, the money flowing from it isn’t counted as income. No impact on CPP or OAS.

F changed that a bit. He turned it into a savings vehicle, not a retirement one, allowing withdrawals at any time with the ability to replace them in the future. Not losing contribution room was a good wrinkle. Calling it a ‘tax-free savings account’ was not.

Before he shuffled off this mortal coil, F raised the annual contribution limit from $5,000 to $10,000. The very first act of the incoming Trudeau government was to slash it back, then add some inflation-indexing. This year the amount you can stuff into a TFSA is six grand.

In a decade the contribution room has grown to $63,500, or $127,000 for a couple. Some people, though, have hundreds of thousands in their plans because they threw high-risk growth assets in there. The CRA has chased those who have used TFSAs to shelter day trading, or professional traders trying to game the system – but that’s not the big issue. Instead, this money machine is being used and abused by a nation of investment wusses.

These days over 70% of people have opened a TFSA, which makes them more popular than RRSPs, marriage or Liberals. The average amount held is about $28,000 and last year the average contribution was $4,800. That’s good. But far too many of we little beavers are squandering this opportunity.

Four in ten consider their TFSA just an emergency fund. Eighty per cent of overall TFSA money is in low-interest GICs or savings accounts. RBC found investors 55 or older have 67% of their money in those brain-dead assets, with just 7% in ETFs. The rest is in high-fee mutual funds or high-risk single stocks. Yikes. What are they thinking?

Anyway, something predictable has happened. People who understand what a gift the TFSA is – for turning after-tax money into a never-taxed stream of proceeds from growthy assets which will not cause government benefits to be clawed back – have been doing just that. Thick-as-a-brick folks, or those who misunderstand risk or are financially illiterate, have been using TFSAs as savings accounts. Thus a dramatic divide has developed, even though this vehicle has been equally and democratically available to everyone, regardless of their income level. Data shows lower-income people keep most of their savings in RRSPs, which provide scant tax savings and can erode retirement benefits. Meanwhile higher-income people have TFSAs growing like weeds.

It will be only another five years or so before the aggregate TFSA room climbs to $100,000 per person. At that time a couple in their early forties holding the maximum amount and making yearly contributions growing at 7% will have $1.26 million in tax-free accounts at age 65. That will throw off an income of about $76,000 per year in retirement which will not be counted as income, allowing full CPP and OAS collection. In other words, a household income of at least $110,000, with zero tax.

So, this is why some people think things need to change. “The federal government should consider capping lifetime contributions of TFSAs — at around $100,000 to $250,000 — to avoid creating more TFSA millionaires while shortcomings persist among lower-income Canadians,” says Ottawa statistician Richard Shillington. He also recommends that Ottawa start topping up the TFSAs of lower-income people with tax money, like you get with your kid’s RESP.

Is this possible?

Of course. Federal taxation policy and budget priorities have been leaning left for a while, as evidenced by the gutting of F’s annual TFSA contribution. Last year Ottawa launched an assault on the self-employed and professional corporations. Now a change to the capital gains rate and treatment of dividends is being considered. Meanwhile the feds pay people when they have children, and tax them more when they succeed. So a TFSA limit is no stretch.

What to do?

Easy. Max your contribution room. Now. Invest for growth. Put more aggressive portfolio assets in there while keeping the fixed-income ones in your RRSP. Fund your spouse’s tax-free account. And your adult children’s. Make the 2020 contribution in the first week of January. Never be satisfied collecting interest inside your plan. Never take money out. Inflate that sucker to obscene, gargantuan proportions. And harbour not one shred of guilt. This is democracy, at work. F would smile.

166 comments ↓

#1 Toronto_CA on 11.12.19 at 4:24 pm

I live in the UK now; here we have ISA accounts that are 20,000 GBP per year per person (so..about 7 times the size of the Canadian version). I’ve been here 2 years and put in 40k GBP already. This is good because my pension/RRSP equivalent room is capped at 10k GBP a year.

If it isn’t a problem in the USA or here in the UK, why does Canada need a lifetime cap? Although in the USA they have income limits for people to contribute to a Roth (with a backdoor Roth still available for anyone though at this time).

#2 GBiddy on 11.12.19 at 4:25 pm

Even when an investment instrument is ‘democratic’ by nature, it proves you can lead a horse to water but can’t make it think.

#3 Yukon Elvis on 11.12.19 at 4:27 pm

Whatever happened to the Peckerettes? I miss them.

#4 Dave on 11.12.19 at 4:28 pm

Everyone I speak to in Alberta has had enough and the Premier hears this message loud and clear.

What levers does he realistically have to project his viewpoint to the Federal Government or BC to make them take notice?

He is going to do something drastic just wondering what???

#5 bdwy on 11.12.19 at 4:43 pm

back from an extended tour down south where the climate thing is a joke to them and they live in 30C weather in the winter. (and the rich still buying all the sweet beachfront places, in aruba at least)
made sure to go up front in the plane for better service and double carbon emissions. a treat for sure.

saw 2 1/2 continents, and too many beaches to remember.

get home to see this in the hood;

http://idx.myrealpage.com/wps/mylistings/4381/listing.v1126546-1610-semlin-drive-vancouver-v5l-4k6.48841263

ask 1.495 sell 1.490. 3 days on market.

tiny house on a tiny lot.

604 RE is not going anywhere.

it took longer to unload some bitcoin over the past few days.

#6 And so forth... on 11.12.19 at 4:51 pm

#119 Smoking Man on 11.11.19 at 11:40 pm
Copied this from my son’s Facebook post.

When there were to many checks from behind on the ice Don made it a priority to put “stop patches ” on our jerseys and try to increase safety in the game.
————–

And made a lot of rock em sock em videos and called ex-fighters a bunch of pukes.

#7 unbalanced on 11.12.19 at 4:57 pm

You have stated in the past that the gov wont touch TFSA.

Still think it. But nobody knows. So don’t squander a day. – Garth

#8 Sold Out on 11.12.19 at 4:59 pm

So, if you stuff your TFSA to the max with risky assets, and said assets decline in value, it doesn’t lower the maximum allowable limit for further contributions?

#9 Danny on 11.12.19 at 5:04 pm

Garth, check out this blog post. He recently said in twitter he reached $130,000.

http://besmartrich.com/2018/05/26/what-did-i-just-break-100000-in-tfsa-how-to-smash-100000-in-tfsa/

#10 leebow on 11.12.19 at 5:08 pm

Richard Shillington is Don Cherry.

“…while shortcomings persist among lower-income Canadians”. What a wonderful euphemism. He thinks and speaks like a bureaucrat. No surprise. He sucks the government tit for 30 years. Yeah Rich, “shortcomings” will cease to “persist” as soon as we average down the net worth of Canadians.

#11 The Greater Cauliflower on 11.12.19 at 5:09 pm

First they came for the Sports Journalists
And I did not speak out
Because I was not a Sports Journalist

#12 Linda on 11.12.19 at 5:14 pm

TFSA’s rock! Everyone should invest the funds for growth. In the low interest rate environment we’ve had for well over a decade GIC’s etc., while safe, are simply not the way to go.

If this & future governments actually cared about citizen financial security later in life they’d restore the TFSA limit to $10,000 & encourage everyone, especially the young, to make full use of it. Using the excuse that limits must be capped because some small percentage of TFSA holders have managed to use them to their full capacity simply puts another block in the path to those who want to secure their financial future.

#13 SunShowers on 11.12.19 at 5:16 pm

All TFSAs do is allow people who ALREADY HAVE large amounts of disposable income to invest it in a more tax-efficient way.

The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them. That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.

#14 Bill on 11.12.19 at 5:26 pm

Huh. $200K in a TFSA should grow at around 12K per year. Twice the contribution limit.

So what’s the point of a lifetime cap again?

#15 PetertheSeparatistfromCalgary on 11.12.19 at 5:26 pm

TFSAs rock! Both my wife and me have maxed ours out and make them a priority.

#16 yorkville renter on 11.12.19 at 5:30 pm

#13 – the majority can save some $$$ if they make that a priority… but they dont

#17 crowdedelevatorfartz on 11.12.19 at 5:31 pm

@#13 SunShine and posies
“The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them.”

++++++

Well.
I used to think like you until I realized my frivilous expenses were dragging me down,.
Out went the $5/day coffee’s.
Out went the $10/day lunches.
Gonzo went the $80/night Pub swilling.

Amazingly enough.
I max out TFSA’s and RRSP’s every year.

Everyone has disposable income.
Just depends of what they spend it on.

And if you forego that expensive tattoo…..you can rock too!

But I doubt it.
Easier to whine.

#18 Never - Truder on 11.12.19 at 5:34 pm

The only way to screw Trudeau with your TFSA:

“Top It Up!!”

“Top It Up!!”

“Top It Up!!”

#19 SunShowers on 11.12.19 at 5:41 pm

#16 yorkville renter on 11.12.19 at 5:30 pm

Speak for yourself. Real median wages have been flat for 40 years while expenses have soared. What worked for Boomers doesn’t work anymore.

That’s why university educated Millennials have to work 2 jobs to get by (while being accused of being lazy!), only to be accused by think piece after think piece of “killing” some product or service when in fact, they just can’t afford to patronize it because their not being paid nearly as much as they should be.

tl;dr: Ok boomer.

#20 Figure it Out on 11.12.19 at 5:47 pm

“High risk single stocks” for the win. As old Turkey rightly said, “it’s a bull market.”

I’m old enough to remember when some of mine were considered suitable for widows and orphans.

Anyway, over $200k combined for me and mine. I don’t see how this shelter remains politically sustainable in the decades to come, but we’ll take advantage while it lasts.

#21 Boombust on 11.12.19 at 5:47 pm

Gee, didn’t “F” also allow 0% down payments and 40 year mortgage amortizaions for awhile, along with raising CNHC caps in order to kick start the Vancouver and Toronto area housing bubbles?

Thanks, F.

#22 IHCTD9 on 11.12.19 at 5:49 pm

#195 Gravy Train on 11.12.19 at 3:54 pm
#189 IHCTD9 on 11.12.19 at 2:28 pm

“You’ve probably already read how I pay jack for income tax. That’s because a succession of governments has allowed many ways for me to lower my taxable income.”

And yet you eschew carbon tax rebates; in fact, you insist on paying as much carbon tax as you can possibly pay—for reasons that will remain a mystery to me. :)
—-

I do? That rebate was definitely on the ‘ol tax return last year. If you’re talking about my truck only getting 10 mpg, well you got me there.

#23 n1tro on 11.12.19 at 5:51 pm

#13 SunShowers on 11.12.19 at 5:16 pm
All TFSAs do is allow people who ALREADY HAVE large amounts of disposable income to invest it in a more tax-efficient way.

The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them. That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.
-+——-+
Spoken like someone who never even bothered to try. How about cutting your $65 a month phone plan and that shiny new iPhone 11 and redirect that into a TFSA?

#24 Yukon Elvis on 11.12.19 at 5:53 pm

So. Brian Burke to replace Don Cherry? I can’t think of anyone else. And he is already on the payroll.

#25 MF on 11.12.19 at 5:54 pm

#13 SunShowers on 11.12.19 at 5:16 pm

This type of comment is pathetic.

It’s called personal ownership and responsibility.

Do I want to work 7 days a week so that I can have something left over for my TFSA? Of course not. I’d rather have days off to enjoy life, but that’s what it takes.

The issue is people are spending too much on RE. Rates are too low and prices too high. The TFSA is just a casualty of that reality. Plus most people are unsure what the TFSA actually is and how it works. Tinkering with it to make it more “egalitarian” is simply sad.

Wake up.

MF

#26 Stoph on 11.12.19 at 5:57 pm

When TFSAs first came out, people scoffed at only being able to shelter $5k a year saying that won’t amount to anything, and now ten years later people think it’s too much. What gives?

Personal finance should be a mandatory class in high school.

#27 Remembrancer on 11.12.19 at 6:04 pm

#8 Sold Out on 11.12.19 at 4:59 pm
So, if you stuff your TFSA to the max with risky assets, and said assets decline in value, it doesn’t lower the maximum allowable limit for further contributions?
————————
Win, lose or draw, its the same yearly limit, as Garth said, for 2019 / 2020 that’s $6000 + replacement of any prior year’s withdrawals or unused room… More here:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html

#28 IHCTD9 on 11.12.19 at 6:05 pm

“And while in my final political days he joined the forces repelling and ejecting me, respect is due. The elfin deity left more good than bad behind him.”
—- –

This is one of the characteristics of Mr. T that I really like. I’ve seen glimpses of it before in his writings.

Few today would tip their hat to a dude for legitimate reasons if said dude had once “stabbed them in the back”.

#29 TC on 11.12.19 at 6:07 pm

Just say NO to identity politics. Thumbs-Up for support for Don Cherry!

Go Don !!!!

#30 Remembrancer on 11.12.19 at 6:07 pm

#13 SunShowers on 11.12.19 at 5:16 pm
That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.
—————————
Why pray tell? If the $10K limit isn’t being used, why so offensive?

#31 Re-Cowtown on 11.12.19 at 6:09 pm

Just a question to all NDP, Green and Liberal supporters who think that Climate Change is the existential issue of our age:

What if we all got up tomorrow morning, turned on the CBC news and found out that:

The Climate Emergency had reversed over night? What if 97% of scientists now agreed that we were heading into an Ice Age and that falling CO2 levels were causing it? And this would cause a catastrophic drop in sea levels and sheets of ice 2 miles thick? In 100 years? And this Climate Emergency demanded that we act now and increase CO2 to a safe level?

Would you environmentally enlightened folk then reverse course and be in favor of emergency burning huge amounts of fossil fuels to get CO2 levels back to where the 97% of scientists say they should be?

Would you still call for the ban on fossil fuels?

Just asking. The point I’m making is that if the opposite was occurring and you still want a fossil fuel ban then …. well…. you know………it ain’t really about CO2 at all….it’s all just about being in a mental prison.

**Mic Drop**

OK, Mills?

#32 FreeBird on 11.12.19 at 6:11 pm

“…Ottawa start topping up the TFSAs of lower-income people with tax money, like you get with your kid’s RESP.”

Government funded is tax payer funded.

How do those choosing to pay into a TFSA with their own after tax money effect those who don’t? Where’s the logic?

#33 bdwy on 11.12.19 at 6:11 pm

Victoria land speculation?
that much land runs 6-7 M in east van today.
thoughts?
——————————–
$799,900
946 Dunn Ave
Victoria, British Columbia V8X2Z4

DOUBLE LOT 60′ X 240′ on a quite cul de sac, close to Uptown Mall, Swan Lake and access to Vernon Ave. This home features hardwood floor, wood burning fireplace and huge deck overlooking the flat, private lot.

#34 Shawn Allen on 11.12.19 at 6:12 pm

The self-sustaining portfolio

#14 Bill on 11.12.19 at 5:26 pm
Huh. $200K in a TFSA should grow at around 12K per year. Twice the contribution limit.

So what’s the point of a lifetime cap again?

**************************************
For any portfolio, It’s nice when the portfolio gains alone are larger than what you might contribute. At that point the portfolio is going to grow nicely even without any further contributions. So self sustaining. Nice.

#35 kommykim on 11.12.19 at 6:16 pm

RE: #16 yorkville renter on 11.12.19 at 5:30 pm
#13 – the majority can save some $$$ if they make that a priority… but they dont

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

Agreed. The priority for most is Iphones, Tats, traveling, eating out, entertainment, etc. Then they get annoyed/jealous when someone else saves and invests their own money instead.

#36 Bob Dog on 11.12.19 at 6:21 pm

We need something like the 401K in the USA where the company you work for actually helps you invest the savings into a retirement account. Why should the average Canadian worker need extensive knowledge in investing.

My 401k has done far better than my RRSP or TFSA. My 401k is run by Fidelity with almost zero in fees. Both of my Canadian accounts I must manage myself or pay some parasite 3rd party consultant to manage.

All these tools needed to do is copy the system south of the border.

#37 Shawn Allen on 11.12.19 at 6:23 pm

The “Income” Portfolio

At some point (after maybe 25 or 30 years of regular contributions) a portfolio can start to grow more in an average year than you or most people make in a year. Really nice. No real need to keep contributing at that point.

#38 IHCTD9 on 11.12.19 at 6:25 pm

#13 SunShowers on 11.12.19 at 5:16 pm
All TFSAs do is allow people who ALREADY HAVE large amounts of disposable income to invest it in a more tax-efficient way.

The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them. That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.
——-

So how does stifling the middle class folks who might be able to scrape 10k together in a year help those who can’t?

Obviously, real actual rich folks would still be rich no matter what the TFSA limit is, right?

Lay it on me SS, I’m all ears.

#39 Rargary on 11.12.19 at 6:28 pm

Finally made my TFSA a priority. Lots of catch up to do. Also THX JF for implementing the RDSP. Catching that one up to for my disabled daughter. May he rest in peace!

#40 Paddy on 11.12.19 at 6:36 pm

Sold Out on 11.12.19 at 4:59 pm

So, if you stuff your TFSA to the max with risky assets, and said assets decline in value, it doesn’t lower the maximum allowable limit for further contributions?

—————————————
If you sell and make a paper loss a realized loss, then yes, you would lose that room forever…this article is pretty decent at explaining it:

https://www.google.ca/amp/s/www.moneysense.ca/save/investing/tfsa-contribution-limit-rule/amp/

#41 Camille on 11.12.19 at 6:36 pm

A big banana (name not required) from Manulife visited Mr. Flaherty wanting to be a bank. I thought he did not allow it, rightly, but I see now they are a schedule 1 bank. So I am not sure. Did not feel they were qualified, having been on the brink. Anyway he had principles. And was a conservative. There were a few like that in the Liberal government but they were purged.

#42 Damifino on 11.12.19 at 6:40 pm

And harbour not one shred of guilt.

Done!

#43 Yanniel on 11.12.19 at 6:41 pm

“ Put more aggressive portfolio assets in there while keeping the fixed-income ones in your RRSP.“

How can you rebalance a portfolio if the risky assets are not on the same account where fixed income is (and withdrawals in the latter come with taxes)? Say there is a correction and you are due for rebalancing? How does the fid income money makes its way from the RRSP to the TFSA?

#44 AGuyInVancouver on 11.12.19 at 6:44 pm

#4 Dave on 11.12.19 at 4:28 pm
Everyone I speak to in Alberta has had enough and the Premier hears this message loud and clear.

What levers does he realistically have to project his viewpoint to the Federal Government or BC to make them take notice?

He is going to do something drastic just wondering what???
_ _ _
So what, boo hoo. Everyone I speak to is sick of the nonstop Alberta whingefest. Welcome to the reality of being dependent on a boom and bust resource economy. So the Saudis kicked you in the ‘nads, man-up and get over it.

#45 ToonTown Stud on 11.12.19 at 6:46 pm

To be clear, if I took 30K out of my TFSA for say a DP on a house, in the new year I could theoretically put in that 30K plus 6 more correct? My personal limit is always the max value of my fund + yearly contribution limit?

#46 Yts on 11.12.19 at 6:51 pm

#13. That’s the dumbest thing I ever heard! Most people can’t contribute to tfsa because they are highlybin dept with mortgage ppayments. I would love to own a home but cannot. It’s too expensive. Therefore I rent and do not enjoy it. Tfsa contributions are all I have left to try and make up some ground. Take tfsa away and you are hurting the less fortunate as well

#47 will on 11.12.19 at 6:54 pm

Yup, the TFIA. Tax Free Investment Account.

#48 FreeBird on 11.12.19 at 6:56 pm

Put a toonie into a jar for a year and have $720 for TFSA. Double it add a Loonie and have $1,800. If you have a spouse to help it’s easy. Mine drops loose change into a piggy bank (a real one hard to get money out) and end of each year has ~$500-700.

Daily coffee and donut/muffin is about $5 (or more if it has a special name) or other small expenses can add up. We also cut cable 3 few years ago and saved over $200 a month ($2400/year). We don’t miss it and just use chrome cast or Netflix. Small things can add up.

#49 not 1st on 11.12.19 at 6:59 pm

Did you hear that today Garth, meetings in Ottawa. Its getting closer, closer, closer still. Western separation.

We have issued you an honorary passport so your CPP payouts can go up.

#50 Figure it Out on 11.12.19 at 7:05 pm

“When TFSAs first came out, people scoffed at only being able to shelter $5k a year saying that won’t amount to anything, and now ten years later people think it’s too much. What gives?”

To a first approximation, NOBODY comprehends exponential growth. That chicken you left out on the counter was fine half an hour ago, but now it is toxic. That portfolio that wasn’t going to amount to much is now growing by leaps and bounds.

Fire up a spreadsheet and calculate how much your TFSA will grow by between your 80th and 90th year, should you live that long.

#51 BlogDog123 on 11.12.19 at 7:09 pm

#4 Dave,
Alberta has lots of leverage. Remember the beer across the border issue with the supreme court. Tolls and checkpoints at the border, no more through traffic from the far east via rail or truck. No more luxury SUVs from Japan making their way to Eastern Canada and Chicago via Northern BC rail terminals. Fun fun.

Canada has lots of inter-provincial trade barriers (sadly) that can be ramped up…

#52 Yukon Elvis on 11.12.19 at 7:10 pm

My tfsa is maxed. I buy dividend paying blue chips when they are on sale. Drip the divvies. Average div. is 5%+ per year, average cap gain is about another 5. Tax free income plus cap gain. Safe.

#53 not 1st on 11.12.19 at 7:12 pm

#44 AGuyInVancouver on 11.12.19 at 6:44 pm
—-

Into trumps loving arms we will go. BC will still looking for climate change and smoking copious amounts of dope.

#54 SunShowers on 11.12.19 at 7:12 pm

#17 crowdedelevatorfartz on 11.12.19 at 5:31 pm
I make President’s Choice tea at home every day.
I eat $2 canned soup I buy from supermarkets for lunch.
I haven’t been to a bar in over a decade.
I don’t have, nor want a tattoo.
Keep on pretending like you know me and making yourself look silly.

But hey, maybe if you gave up all those things you mentioned then could afford all those tax increases you’ve been complaining about. So tighten your belt and start living within your means, bucko.

#23 n1tro on 11.12.19 at 5:51 pm
My phone is 3 years old lol, always go for the $0 down model when you need to upgrade too. And you need a data plan ($65 per month) so you can be able to view and respond to work emails when you’re out of the office, and even when you’re at home after work hours. That’s the norm now. How do you not know this? When’s the last time you had to look for a job, gramps?

#30 Remembrancer on 11.12.19 at 6:07 pm
#38 IHCTD9 on 11.12.19 at 6:25 pm
Because if only the wealthiest 20% (I believe that was the figure at the time) of Canadians could afford to top up their $5000 TFSA, then BY DEFINITION, bumping that limit only helps that wealthiest 20% or an even smaller, wealthier fraction.

The cost of that handout to the rich is foregone taxes that could have gone towards financing social programs that the rest of Canadians could have actually benefited from.

#55 Re-Cowtown on 11.12.19 at 7:18 pm

#44 AGuyInVancouver on 11.12.19 at 6:44 pm
#4 Dave on 11.12.19 at 4:28 pm
Everyone I speak to in Alberta has had enough and the Premier hears this message loud and clear.

What levers does he realistically have to project his viewpoint to the Federal Government or BC to make them take notice?

He is going to do something drastic just wondering what???
_ _ _
So what, boo hoo. Everyone I speak to is sick of the nonstop Alberta whingefest. Welcome to the reality of being dependent on a boom and bust resource economy. So the Saudis kicked you in the ‘nads, man-up and get over it.
++++++++++++++++++++++++++++++++++

Spoken like someone who has no clear where their oil comes. Hint: Think polar bears. Oil tankers are coming through the Georgia Strait every day from Alaska.

Trump is kicking you in the ‘nads five times a day and you’re not even getting kissed.

#56 SunShowers on 11.12.19 at 7:19 pm

Sorry about any typos and/or grammatical mistakes in my posts. I am hurriedly typing out these responses in between clients for the second job I have to work after my 9-5 because Boomers blew up the economy.

#57 Comrade on 11.12.19 at 7:38 pm

I think that F didnt raise the contribution. It was $5,500 in 2014 when he died, it was raised to $10,000 in the second half of 2015 as the conservatives attempt to gain more votes in the upcoming election. It was reverted back to $5,500 and then raised to $6,000 by liberals.

#58 It was just explained to me ... on 11.12.19 at 7:51 pm

if you are paying to much in taxes you need some cows. And a good accountant to go with them … wise words from the hinterland.

#59 crowdedelevatorfartz on 11.12.19 at 7:51 pm

@#54 Sunshine and lint covered Lollipops
“I don’t have, nor want a tattoo.”

+++++
You’re a Millennial without a Tat?

Weirdo!

Oh, and dont worry about what I can afford….
My balanced and (TFSA / RRSP MAXED) diversified portfolio is doing GREAT!

:)

#60 Sail Away on 11.12.19 at 7:59 pm

#56 SunShowers on 11.12.19 at 7:19 pm

Sorry about any typos and/or grammatical mistakes in my posts. I am hurriedly typing out these responses in between clients for the second job I have to work after my 9-5 because Boomers blew up the economy.

————————————-

Not seeing it, Sunshowers. My engineers and techs are paid a very decent salary and merit-based bonuses. There are plenty of millenials among them. My own salary is similar to the senior engineers, although I do also get the majority of the profit because ownership. Before you get all communist on me about worker equality, I did sacrifice plenty to get established and all of these fine people have fine jobs because of it.

They all have opportunity to move into ownership, in exactly the same trajectory as my career. I’m not seeing any boomer/millennial/genx angst here. Is income inequality a hoax? Fake news?

#61 PastThePeak on 11.12.19 at 8:05 pm

Yes, a lifetime cap is a given and it will be closer to the bottom of the range rather than the top. Guaranteed. Further restrictions are inevitable in the coming decades. The government needs your money and they will get it.

#62 crowdedelevatorfartz on 11.12.19 at 8:06 pm

@#56 Sunshine and Rainbows
i work 8 days a weeks in a gig economy “salt mine” called Amazon……..because…..
“Boomers blew up the economy….”
+++++

Glad we could help instil a bit work ethic in you young grasshopper…..just keep paying into CPP for MY benefits……

#63 oh bouy on 11.12.19 at 8:12 pm

Man, it just keeps getting more and more grim in here.

#64 ImGonnaBeSick on 11.12.19 at 8:26 pm

#44 AGuyInVancouver on 11.12.19 at 6:44 pm

Really? Coming from the guy that literally whines every day about Vancouver house prices and how those nasty immigrants have stolen your dreams?

Oh boy… Just like most millenials, zero self-awareness…

#65 Peter Laurin on 11.12.19 at 8:28 pm

Garth,

I have been trying to research information on “Debt Jubilee (DJ),” and the ramifications if it ever occurred. But there is a lack of accurate information on DJ. Would you be so kind as to provide info, pros and cons, of what will happen if a debt jubilee ever occurred. For example, one website indicated that money in your bank account is considered debt owed by the bank to you, and if a DB occurred money in your bank account would cease to exist. Thank you.

#66 IHCTD9 on 11.12.19 at 8:31 pm

#54 SunShowers on 11.12.19 at 7:12

The cost of that handout to the rich is foregone taxes that could have gone towards financing social programs that the rest of Canadians could have actually benefited from.
——

TFSA contributions are fully taxed before deposited, so revenues stay the same no matter what the government does with the contribution limit. Only the gains are tax free.

Also as already stated, actual rich folks don’t give a rip about the TFSA limit – that’s little people stuff. If any real rich folks are reading your posts right now, they are probably laughing and high-fiving each other.

So where’s the actual real life benefit for the poor? You seem pretty convinced that there is some solid benefit for poor folks by cutting the limit back for the middle class.

Go ahead and lay it on me SS.

#67 Ronaldo on 11.12.19 at 8:38 pm

Data shows lower-income people keep most of their savings in RRSPs, which provide scant tax savings and can erode retirement benefits.
——————————————————————
The very same people who would benefit the most from the TFSA and for which this vehicle was initially developed for. As a result, these individuals at the lower income level will likely be subject to clawbacks of their GIS. Oh well.

#68 ImGonnaBeSick on 11.12.19 at 8:39 pm

#54 SunShowers on 11.12.19 at 7:12 pm

Blah blah blah ..

Because if only the wealthiest 20% (I believe that was the figure at the time) of Canadians could afford to top up their $5000 TFSA, then BY DEFINITION, bumping that limit only helps that wealthiest 20% or an even smaller, wealthier fraction.

—–

You mean the 20% that pay all the taxes anyways? Yeah, why should they get any perks besides the joy of paying for everyone’s services? Why is it bad to be successful in your petty world?

#69 Blessed Canadian Millenial on 11.12.19 at 8:39 pm

#76 Nonplused on 11.10.19 at 7:53 pm
You called Greta ‘insane’ and I warned you. Now you call her ‘deranged.’ Amazing what influence a 16-year-old female child has on you. – Garth

I didn’t use her name but I suppose the reference was clear enough. Anyway she has had “an influence” on all of us. “How dare you!” is now a permanent part of our collective minds.

Is she “insane”? “Deranged”? Word is she couldn’t get home because she wouldn’t go on an airplane, even though the plane probably had empty seats and the folks manning her yacht flew back and forth. The yacht trip was simply theatrics, there would have been a much lower carbon footprint if she just flew.

Greta is nothing but a propaganda effort. We cannot leave the future of the world and the economy to the hands of people, children dare I say, that have not yet completed grade school. And we shouldn’t be scaring the bejezus out of them either. Let them enjoy their childhood and let the adults work on the problems.

This whole thing has the air of the nuclear bomb drills kids did in the 60’s, where they had to hide under their desks, as if that would help. Strangely, no nuclear war came. The air raid sirens never went off, except for testing or malfunctions.

I was raised a fundamentalist Christian, for which I blame my parents. As a result, Armageddon has come and gone for me perhaps a dozen times in my adult years, but yet day to day life hasn’t seemed to change all that much. Eventually I came to believe that part of the bible wasn’t probably anymore accurate than the creation story. But the fear of impending doom never left me. I still see it in every headline. But now, with many years of expecting the worst and then it isn’t so bad, I am beginning to see that all that is happening is someone is trying to sell a book or some ads on a supposed news channel. The end is not near.

The retort to “How dare you?” is simple. I had to get to work.

“How dare you?” I’ll tell you how my parents and grandparents “dared”, and theirs before them. They wanted a better life for themselves and for me. And for Greta. And everyone. And they achieved it. We should be thanking them.

And it seems, “dare” I say, that she has had quite an affect on you as well. Whatever her age, she has been made a public spectacle, put forward as an influencer, and injected into the public discourse. This of course would have never happened unless there were adult handlers behind every move. But nonetheless, there she is a public figure. So she and her handlers are open to public criticism. But you defend her in the same way you attack Trump. So we probably both have logs in our eyes. How we are going to help each-other resolve that problem remains to be seen.

The main difference between Greta and Trump is that Greta should never have been put up to this at her age. Trump is a grown boy and knew what he was getting into, so fine. He expected to have critics and enemies. Greta, on the other hand, should have been allowed a normal upbringing but her parents, who are both actors by they way, turned her into something of a circus attraction. Shame on them, not her. No 16 year old should be tasked with saving the world. God didn’t even ask Jesus to do it until he was 30.

Young people speaking their mind. Getting so much resistance from behind. – Garth

————–

Sorry Garth, I’m not buying. Is she really speaking her mind or is she being forced fed what to say by her handlers?

Nonplused is absolutely right on this one and I, as a Millennial, agree with him.

#70 IHCTD9 on 11.12.19 at 8:42 pm

#58 It was just explained to me … on 11.12.19 at 7:51 pm

if you are paying to much in taxes you need some cows. And a good accountant to go with them … wise words from the hinterland.
——

Or some kids. Plus kids are better at roofing and about the same at mowing as cows.

Seriously though, that is intriguing. I’ve got 4 acres doing nothing…

#71 yvr_lurker on 11.12.19 at 8:47 pm

#31
What if the Climate Emergency had reversed over night? What if 97% of scientists now agreed that we were heading into an Ice Age and that falling CO2 levels were causing it? And this would cause a catastrophic drop in sea levels and sheets of ice 2 miles thick? In 100 years? And this Climate Emergency demanded that we act now and increase CO2 to a safe level?

————————————-

???? huh? Starting off an argument with the sentence “What if pigs could fly, and now 97% of the people agree with this statement…” is not a rational way to begin an argument. Clearly you never engaged in rational scientific thought… already they teach how to construct a scientific argument to my 15 year old in grade 10…

#72 Lorne on 11.12.19 at 8:50 pm

#4 Dave
Everyone I speak to in Alberta has had enough and the Premier hears this message loud and clear.
………
Funny everyone I speak to has the exact opposite feeling….but, then again, we must be on the opposite side of the political spectrum. So, does it really make any difference what we hear?

#73 crazyfox on 11.12.19 at 8:58 pm

I dissed F plenty but at least he was a federalist who realized we are not an island, not like the sore loser whinny bitches that pass for Conservatives out west. Reform traitor pretenders, bunch of whiny fake Canadians. I do tire of listening to a bunch of uneducated(s) who are so low information, they can’t recognize the difference between a fact and a bad guess. Not to sound too much like Trump, but its sad. Truly sad.

F had me hot at times but at least he had brains. In no way F would promote the fakery we see out west these days. The politicians out here engage in puffery at it’s worst and the poorly educated, simple minded, easily led and mental health conditioned eat it up:

https://en.wikipedia.org/wiki/Puffery

Sad. Truly sad. :(

F understood what our current loser western politicians can’t or won’t and it will be their downfall. When the numbers and talent count for nothing (both sides are even) and it comes down to who wants it more and it becomes a war fought on emotion (like the last election), it comes down to whoever has the greater truth. There are plenty of reasons why the Cons lost the last election but mainly, they defeated themselves. They ran a campaign filled with dishonesty and personal attacks and as such, had the lesser truth.

And look at them now… devolving into a regionally divided part federalist, part traitor party with western Conservatives taking their talking points from Preston Manning, another glory seeker looking to get his name in the histories as a founding father of a new nation trying to re-invent the wheel, shitting all over our founding forefather’s good judgment. “We’re going to provide better law enforcement and jurisprudence, courts and penal systems (“for profit” is their policy history, like that will work well), better taxation (already the lowest in Canada but why split hairs), better markets (investors so love political instability and ignorance, when your #1 customer dries up, get worried. Albertans should be very worried), better health care and education (for those who can afford pay as you go), better pensions, we’ll all be so much better off as a Republic or U.S. state blah, blah, blah.” It’s all a pack of lies, so stale and unimaginative its beyond ordinary and thus banal.

If there’s a one of us who think I’m happy with this devolving bunch of shit heels we pass off for politicians out west, think again. I’m a federalist through and through and a strong federation needs at least two political parties who can govern at any given time because at some point, the baggage, the ego bloat, the failed character, the bad policy, the burned out politicians, a governing party will need to be replaced regardless of what stripe they are. The time to replace the Libs at some point will come but is this Conservative party fit to replace them? The Cons have the lesser truth! Jim Flaherty, if he was alive right now, he’d be raking western Conservatives over the coals because he understood how warfare works. He wouldn’t allow this shit show to happen without a fight.

PO’d western Canadian

#74 Lorne on 11.12.19 at 9:00 pm

#55 Re-Cowtown

So what, boo hoo. Everyone I speak to is sick of the nonstop Alberta whingefest. Welcome to the reality of being dependent on a boom and bust resource economy. So the Saudis kicked you in the ‘nads, man-up and get over it.
++++++++++++++++++++++++++++++++++

Spoken like someone who has no clear where their oil comes. Hint: Think polar bears. Oil tankers are coming through the Georgia Strait every day from Alaska.
………..

Spoken like someone who has no clear idea about oil tankers coming from Alaska to Washington state at Cherry Point. NONE of them go through Georgia Strait (now often called the Salish Sea). They travel well off the west coast of Vancouver Island and down the traffic lanes in the middle of Juan de Fuca Strait. I think I may have pointed this out to you before but I guess you only wish to believe what you want to believe.

#75 Sold Out on 11.12.19 at 9:04 pm

#54 SunShowers

I hear ya. Lots of people who enjoy a long run of relative good fortune don’t recognize that 90% of it is just random chance running in their favour; lucky to be born at the right time, lucky to be born into a functional family that values education, lucky to be healthy. They equate the ability to amass material wealth with moral superiority, and believe that they are a self-made success. Born on third base, thinking they hit a triple.

When the only people you know and socialize with are the same age and look just like you, it’s easy think you’re pretty average and representative of the elusive ‘middle class’. It never occurs to them that people who do all the conventional things we equate with success – go to uni, get a job, work hard – but lacking the lucky magic ingredient, might have a different outcome. We call these people ‘clueless tw*ts’.

No one wants to admit that they were born with a horseshoe up their butt if they can get away with letting people think they are somehow just better at life than all the whiners. If they had any self-awareness, they’d look in the mirror every morning and think “I’m the luckiest SOB on earth”. Instead, they hang around places like this blog and pump each others tires while telling the equally deserving, but more lightly rewarded, that they’re not doing it right.

No one’s luck – good or bad – lasts forever. If we live live long enough, we’ll get a good helping of both. I have been very fortunate; my former line of work involved helping alot of people who were having the worst day of their life. I take nothing for granted, and freely admit to being the luckiest person I know.

#76 yorkville renter on 11.12.19 at 9:14 pm

#19 – SunShowers… you love to cast stones, eh? I just turned 43, so not even close to being a boomer – just slightly older than a Millenial.

When i left university I was almost $50k in debt and you know what I did? live at home until I paid back all my student loans…

I had choices and I chose to sacrifice my ‘freedom’.

In Canada everyone has a choice to make… what you do, where you live, who you’re with, how you carry yourself, etc. BUT, not everyone gets to succeed, that’s called life and it isn’t fair

#77 yorkville renter on 11.12.19 at 9:16 pm

#19 – SunShowers… you love to cast stones, eh? I just turned 43, so not even close to being a boomer – just slightly older than a Millenial.

When i left university I was almost $50k in debt and you know what I did? live at home until I paid back all my student loans…

I had choices and I chose to sacrifice my ‘freedom’.

In Canada everyone has a choice to make… what you do, where you live, who you’re with, how you carry yourself, etc. BUT, not everyone gets to succeed, that’s called life and it isn’t fair

#78 Freddy on 11.12.19 at 9:18 pm

All TFSAs do is allow people who ALREADY HAVE large amounts of disposable income to invest it in a more tax-efficient way.

The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them. That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.
—————————————————————————-
Comments like this drive me nuts. First of all RRSPs are the vehicle that in fact favour the rich . TFSAs should be favoured over RRSPs for lower income earners. Why do we have to aspire to mediocrity as a nation. Trudeau did one think right indeed; the legalization of weed…. not because I ever touched that crap, but because it’s a new source of revenue.

#79 Cici on 11.12.19 at 9:21 pm

#13 SunShowers

The REASON “the overwhelming majority of Canadians” don’t have enough to stuff in their TFSA accounts is because they CHOOSEto squander it all away on condos, SUVs and lavish yearly vacations. Canadians are not poor by any global standards, but certainly to liketo live beyond their means. And a70% homeownership rate is proof of this. Suck and blow, then cry out for more milk from the nanny state.

While I ha en’t yet maxed out my own TFSA, I’m at leastcontributing diligently on a yearly basis. However, I’m far from a high-income earner. How am I doing it? Driving a 10-year old car, renting, foregoing all but the smallest of luxuries and for the most part, staycationing or daytripping.

No pain, no gain. Wanna eat fish, go learn how to catch a fish.

Whatever happened to survival instinct or pride?

Nope, easier to blame “the rich.”

While

#80 Ronaldo on 11.12.19 at 9:24 pm

#13 SunShowers on 11.12.19 at 5:16 pm
All TFSAs do is allow people who ALREADY HAVE large amounts of disposable income to invest it in a more tax-efficient way.

The problem facing the overwhelming majority of Canadians is that they do not HAVE disposable income to invest, making the TFSA useless to them. That is why the bump to the $10k limit was ridiculous, and Trudeau rolling it back was one of the only things he got right.
—————————————————————–
Not so. The TFSA will work extremely well for elderly people who decide to sell their home and move into care homes or rent for that matter. They could now invest $63,500 into a TFSA and contribute annually and let it grow and compound tax free and at some point in the future could draw from the TFSA to supplement their OAS, CPP and even GIS without clawbacks. The best thing since canned milk.

#81 To Sunshowers on 11.12.19 at 9:29 pm

To Sunshowers
Do the best you can and do not bad mouth everyone
I am a boomer my phone is four years old and my cell phone plan is $25 a month. I am lucky my wife makes homemade soups which is cheaper than cans.
Eating out is swiss chalet a real treat.
I do not go to bars, do not have a tattoo

Everyone’s story is different, dont lump everyone together and nor should people gain up on a hard working Canadian like you either.

The problem is we are brain washed into thinking how we spend and save money. Both my parents worked two jobs and sacrificed everything to live.
I worked two jobs and saved money.
Yes boomers are lucky but dont blame us for the way the world is today. What sacrifices do you make to save the planet?
Majority of Canadians think they are owed something.
Nope its all about work hard and save money and do not blame anyone for that’s the way the world is until it changes.

#82 Doug in London on 11.12.19 at 9:31 pm

@Cici, post #78:
Well said, and quite consistent with my observations.

#83 Linda on 11.12.19 at 9:33 pm

‘Sun showers’ – the TFSA contribution amount is the same regardless of income. It follows that someone whose income is low & who somehow manages to scrounge up the money for the yearly TFSA contribution will be far better off upon retiring than they would be otherwise. Figure this out – the gig economy doesn’t provide any kind of pension plan, other than CPP. Since the income from a TFSA is not counted as income, having one is one way for low income earners to ensure they can retire & have enough to live on, since any income they receive from their TFSA will not impact any income they might receive from OAS/GIS.

It doesn’t matter whether someone else has the ability to contribute the full amount to a TFSA without having to scrape for every cent. What does matter is that low income earners have this opportunity to increase their incomes to be at least what they had while working & be able to retire just like everyone else. Beats working until the day of death or disability & for sure beats living in a homeless shelter because your benefits don’t provide enough to live on anywhere else.

#84 TFSA poll on 11.12.19 at 9:34 pm

I am curious about TFSA can we do a poll on current values?
Mine is $120,000 my wife $126,000 how does that compare to others?
I am up 26 percent since beginning of the year.
Thanking everyone in advance for their honest answers.

#85 To Ronaldo on 11.12.19 at 9:40 pm

What statistics do you have the majority of Canadians do not have disposable income?
I knew a pensioner who made $39,000 a year And saved $4,000 a year.
I believe majority of people spend and do not know how to live cheaply, we are all chasing the dream of homes, cars and cell phones. That’s where your disposable income goes.
So Ronaldo I will eat crow if you list all your expenses for all to see that you live cheap and have no disposable income, versus wasting money on living the dream.

#86 To cici on 11.12.19 at 9:43 pm

Well said!
I agree I think majority of Canadians have been lead to believe we need to have it all.
What happened to the depression generation who could squeeze a dollar forever?

#87 Popeye The Sailor Man on 11.12.19 at 9:45 pm

People don’t know the real cost of every day things.

You can prioritize TFSA contributions by giving up some some simple things.

Pets cost a lot and some have more than one, I have one but know the cost. https://www.moneyunder30.com/the-true-cost-of-pet-ownership

Keep your car a couple of years longer, even the cost of a new transmission is cheaper than the tax on a new car.
If you eye a new 2020 Truck/car now and keep your car for another three years the 2020 truck will be 40-50% less and your older car will have dropped a bit in value.
I buy 100k SUV’s for 1/5th the new cost when they are 8 years old. I will never buy new.

Eating out has been flogged like a dead horse by others and should be obvious to all. Nuff said.

Cable, internet, cell phone, satellite radio, xbox live, netflix, hulo, Amazon prime, onstar, facebook games, free trials that are now costing you money; review this and look at the 5 year cost of each to see if it worth it.

Review insurance costs, have what you need.

A house that is 100K less can save you hundreds a month. How big a house do you need.

$6000/year is $500/month or $115/week or $16/ day.

Even a part time job one day a week delivering pizza can give you the $115 you need for that week. This is possible just need to prioritize it.

Even if you can’t now the contribution room grows, and when you get that windfall, from a tax return, inheritance, proceeds from a sale, the bonus, a big raise, the better job, or you commute your work pension later in life you will now where to put it.

(I’m a Blue collar worker that 20 years ago came off unemployment to work a 30K job, now making over 100K and we are a single income family of four and our TFSA’s are maxed. We had to catch up because we could not contribute much at first and also did not understand the full potential) The Greater fool has been a great source of financial knowledge, were going to be OK!

Besides Garths Money Road book, I recommend for a start, reading the wealthy barber and the millionaire next door. I know there are other good books, but these few did it for me.

#88 Ustabe on 11.12.19 at 9:47 pm

#63 oh bouy on 11.12.19 at 8:12 pm

Man, it just keeps getting more and more grim in here

Doesn’t it, though.

I’ve got a box of old Rock Em, Sock Em videos in the shed. I’d be glad to donate them along with a case of Costco Kleenex to anyone here who needs a little pick up in life…beyond that I just give thanks almost daily that no one in my real life circle seems to exhibit the kind of behaviour and talk so much in evidence here.

I’ve got a theory that some heavier handed moderation and not so subtle encouragement to more than a few that they really need to start up their own blogs rather than polluting this one might fix it.

#89 presley1000 on 11.12.19 at 9:49 pm

Garth, you may vomit with this story…

A handful of years ago, I cashed out about 100K in RRSP bank mutual funds and decided to go for broke in close to 100% cannabis stocks. I had a few bucks in my TFSA, but nowhere near the limit.

Within a couple years that 100K and change was just over $2M (at that parabolic top). Of course I didn’t cash out and I rode much of it back down like all the rest (but still way ahead for now)… but I also allowed myself to live off that money, boozing, gambling, paying rent (never have owned), vacations (did 6 weeks at the World Cup all over Russia), and everything else, while starting and running a biz not needing to pay me a salary for the first 3 years. Now, during lean cannabis equity times, I’m being nicer to myself with a salary.

Had I not been a crazed user/spender of the TFSA money, just holding the equities would have put me back at square one and limited my future contrib space. Instead, the CRA currently tells me I have $261K available as my 2019 TFSA cap space. But I’m tapped out for now. I still have a bunch available in my RRSP.

Question is, do I take the RRSP tax hit now and move funds over to max out the TFSA? I’d consider being a lot safer, because been there, done that. :)

#90 TurnerNation on 11.12.19 at 9:50 pm

For fiction and entertainment purposes only: what if the UN and IMF imposed onto Kanada crippling fines and carbon taxes for not doing the correct raindance and changing the climate per targets
Such that, our credit rating fell subpar and banks forced to issue those “bail in shares”, and RSPs and TSFA were also raided by the Feds for cash or converted into new bank equity. We’d all be owners and equally poor. The state would own the assets. Gee we never seen this before anywhere right?!
Totally fictionally speaking of course.

Remember, 3rd world countries get bom’d. 1st and 2nd world countries get economically bom’d by the elites.

They’ll stone you just like they said they would. After all nutters tell us there is a plan afoot to communize us all globally. How would they do it…first step shut down our commodities production. Second, impart civil unrest or war (Wexit, QC). Standard playbook stuff, it works

#91 Figure it Out on 11.12.19 at 9:52 pm

If this blog just reprinted #75 Sold Out‘s comment for the next ten days running, it would probably impart more wisdom to its readers than whatever hornet’s nests Garth is planning on stirring up.

From what I’ve read and listened to, many billionaires and centi-millionaires consider themselves lucky. But down in the lower echelons of wealth, there’s a lot less self-awareness. Your average millionaire, it seems to me, figures he’s earned every penny, that anyone could do it with hard work and dedication, and that his taxes are FAR too high, being grifted away to spend on the lower orders who are overly lazy, fecund, and stupid.

I consider myself lucky indeed.

https://en.wikipedia.org/wiki/Veil_of_ignorance#Rawls'_version

#92 Stone on 11.12.19 at 9:58 pm

#56 SunShowers on 11.12.19 at 7:19 pm
Sorry about any typos and/or grammatical mistakes in my posts. I am hurriedly typing out these responses in between clients for the second job I have to work after my 9-5 because Boomers blew up the economy.

———

And Nelson from the Simpson’s pointed and said:

Haha!

#93 MoMoney on 11.12.19 at 10:17 pm

am curious about TFSA can we do a poll on current values?
Mine is $120,000 my wife $126,000 how does that compare to others?
I am up 26 percent since beginning of the year.
Thanking everyone in advance for their honest answers
—————–

What’s your investment strategy? I’m at 165k and my wife is at 202k…we got lucky with pot stocks but been out since last year.

We invest mainly in ETFs now and play it safe.

#94 Ronaldo on 11.12.19 at 10:17 pm

#84 to Ronaldo

So Ronaldo I will eat crow if you list all your expenses for all to see that you live cheap and have no disposable income, versus wasting money on living the dream.
——————————————————————
You should be directing that question to #13 Sunshowers. Read her/his post again.

As for myself I have more disposable income than I need. Retired now for 19 years. I did what I needed to do to get to where I am today. I suggest you do so as well.

How much crow can you eat?

#95 Ronaldo on 11.12.19 at 10:27 pm

#17 crowdedelevatorfartz on 11.12.19 at 5:31 pm

Good response. Could not have said it better myself.

#96 Tony on 11.12.19 at 10:33 pm

Thank you Garth for your role the TFSA.

#97 Sam Wiseman on 11.12.19 at 10:34 pm

In fact, F screwed a million or more seniors who’d invested in Income Trusts for the same reason Trudeau is looking at killing off the TFSA….tax. He’s no hero.

I invested in growth for our TFSA and am one of those accidental near millionaires. Through no great genius I bought good companies that pay dividends. Those boring companies have doubled, tripled, quadrupled over the years, while paying dividends. At one point I thought it was getting complicated and considered an advisor, but couldn’t find one who’d done better than my own acumen. In fact I found the advisors antiquated and quite dumbed down in MPT which led them to droning on about ‘philosophy’. Simple. Second, I couldn’t find an advisor who was truly honest . There was always hidden fees, trailing, redemption etc that showed them as dishonest for not disclosing. I wanted someone who was honest, moral and successful, couldn’t find one. So I did it myself by individual effort.

No Balanced ETF plays, mutual funds or bonds, just good companies that provide power, gas and consumer goods or services. I took no advisor on board and didn’t use any specialized trading gambits, just bought good Canadian companies that do stuff.

Was it magic or luck? No !! I just didn’t fall for the full intellect of naysayers who preach against buying stocks. I turn 65 this month, an all cash multi millionaire. And, I own a million plus house two blocks from City Hall in what realtors would call ” a prime location”. The high-rises are closing in and I’ll likely be looking at an assembly offer of $5 million to buy me out.

What happens to persons like myself if Prince Petunia caps a TFSA at $250 thou and attacks capital gain. I’m convinced Trudeau hates the Canadians who built the country. And I agree wholeheartedly with Don Cherry.

#98 Ronaldo on 11.12.19 at 10:36 pm

#19 SunShowers on 11.12.19 at 5:41 pm
#16 yorkville renter on 11.12.19 at 5:30 pm

Speak for yourself. Real median wages have been flat for 40 years while expenses have soared. What worked for Boomers doesn’t work anymore.

That’s why university educated Millennials have to work 2 jobs to get by (while being accused of being lazy!), only to be accused by think piece after think piece of “killing” some product or service when in fact, they just can’t afford to patronize it because their not being paid nearly as much as they should be.

tl;dr: Ok boomer.
—————————————————————–
Another whining Millie. What worked for Boomers worked for my two GenXer sons. Maybe the problem is staring at you from your mirror.

#99 SoggyShorts on 11.12.19 at 10:51 pm

#31 Re-Cowtown on 11.12.19 at 6:09 pm
Congrats on the dumbest post in quite some time.

To rephrase your question:
“If scientists all said a thing, and there was plenty of evidence to support it, would you listen?”

Yes. Yes we would, that’s the whole damn point.

Do you believe scientists when they tell you smoking is bad, and vaccines are good?

#100 Phylis on 11.12.19 at 10:58 pm

#23 n1tro on 11.12.19 at 5:51 pm And…. the membership to LA fitness…

Sunshowers must not think that improving one’s situation is possible.
I worked with people who literally lived under bridges and pulled themselves up who would not spout the bile i see here. Get better sunny. It can be done. Good luck to you.

#101 SunShowers on 11.12.19 at 11:03 pm

#66 IHCTD9 on 11.12.19 at 8:31 pm

Simple, any after tax money that is NOT invested through a TFSA, is either invested in an RRSP (where the gains are taxed along with the principal at withdrawal), or into an unregistered account, where capital gains tax is paid on any growth.

Reduced TFSA room doesn’t mean the after tax money disappears, it just has to get redirected to another vehicle where the gains will eventually be taxed. Ergo, more TFSA room = less tax collected on the growth.

Nor did I ever say that the TFSA haircut was the magic bullet to end income inequality in Canada. I was just pointing out how silly it is to give people who already have $5000 to stuff into tax-advantaged accounts room to cram in ANOTHER $5000, when the vast majority of Canadians don’t even have the initial $5000.

Ideally, I would like to see capital gains taxed at 100% of the marginal rate, as well as a progressive wealth tax. Figure the rich folks would give a rip about that?

If we do see this implemented in some form, marginal tax rates would likely need to come down for all brackets. At least ones under something like $250,000 per year. CEOs and the like can pound sand for all I care, but give doctors, lawyers, and engineers a break.

Oh, and thanks Garth!

#102 Sail Away on 11.12.19 at 11:16 pm

#75 Sold Out on 11.12.19 at 9:04 pm
#54 SunShowers

I hear ya. Lots of people who enjoy a long run of relative good fortune don’t recognize that 90% of it is just random chance running in their favour; lucky to be born at the right time, lucky to be born into a functional family that values education, lucky to be healthy. They equate the ability to amass material wealth with moral superiority, and believe that they are a self-made success. Born on third base, thinking they hit a triple.

———————————-

Sold out, it is my experience that every life has its challenges and nobody makes it through unscathed. You never know what someone has gone through, or is going through. When people succeed, they generally succeed despite the challenges, not because they were provided success on a silver platter.

#103 Axehead on 11.12.19 at 11:17 pm

155,000 signed “Bring Back Don Cherry” petition, and climbing.

#104 Re-Cowtown on 11.12.19 at 11:22 pm

74 Lorne on 11.12.19 at 9:00 pm
#55 Re-Cowtown

So what, boo hoo. Everyone I speak to is sick of the nonstop Alberta whingefest. Welcome to the reality of being dependent on a boom and bust resource economy. So the Saudis kicked you in the ‘nads, man-up and get over it.
++++++++++++++++++++++++++++++++++

Spoken like someone who has no clear where their oil comes. Hint: Think polar bears. Oil tankers are coming through the Georgia Strait every day from Alaska.
………..

Spoken like someone who has no clear idea about oil tankers coming from Alaska to Washington state at Cherry Point. NONE of them go through Georgia Strait (now often called the Salish Sea). They travel well off the west coast of Vancouver Island and down the traffic lanes in the middle of Juan de Fuca Strait. I think I may have pointed this out to you before but I guess you only wish to believe what you want to believe.

++++++++++++++++++++++++++++++++++

The point that you’ve made is that you are OK with oil shipments off the BC coast.

#105 Keyboard Smasher on 11.12.19 at 11:28 pm

@Dave #4
>What levers does he realistically have to project his viewpoint to the Federal Government or BC to make them take notice?

Start setting up land mines along the Trans Canada and raiding B.C. for spoils and women.

#106 Lolo on 11.12.19 at 11:28 pm

thanks, Garth. It was due to your blog that I moved my TFSA holdings from money market mutual fund. I had previously treated it as a ‘saving for a downpayment fund’. Yes, I admit it. But you have shown me the light. Now I treat it as my ‘let it grow, it’s off-limits investment’ fund.

#107 The Awakened One on 11.13.19 at 12:11 am

Thank you Garth,

For the wise words. Reading your blog over the years has done me well (V-e-r-y well) for my direct investing account than any calculus and stat course back in university!

Will do Sir! Yup, always make it the first week of the year to take full advantage of the growth curve. (Even it means shopping at Winners & Costco, avoid Starbucks like an STI, scrapping baked beans for breaky, air-dry my laundry…)

Like F: Fill it up, and Forget.

#108 Urban Exec on 11.13.19 at 12:21 am

TFSA

I have $102K, wife has $126K

I took a flyer on a few high risk, high reward stocks that didn’t pan out, but I’m still pleased with my results.

#109 Sail Away on 11.13.19 at 1:27 am

And for happy news: my hero Elon Musk launched 60 more Starlink satellites and announced Tesla’s next factory in Germany.

All 3 Falcon boosters have now been re-landed and recovered safely 4 times. If anyone is unaware how amazing this is, take it from me: it’s amazing.

We’re watching sci-fi in action. Absolutely mind-boggling.

#110 Smoking Man on 11.13.19 at 1:37 am

Had a lot to say tonight.

Too drunk to type…… I love you all .

#111 Al on 11.13.19 at 2:08 am

Sunshowers, seems like things are tight so you really don’t need a $65 cellphone plan to check emails. Not sure what city you’re in but you can get data plans from zoomer ( Rogers network) with a free phone for $36 (with automatic payment discount) with 3-4 GB (it fluctuates). Data only plans from Fido (3gb) are $15. Freedom has 1.5 gb plans for $24 ( includes national data roaming). Plus there are other good deals depending city you’re in. Yes the wages have been stagnant for a while but if you work full time and earn the median stagnant wage (51.7k AFTER tax in 2016 according to stats can, so it’s higher now) barring extenuating circumstances, a single person should be able to put away at least 6k a year. The general population sucks with money, no matter what their income levels. I’m sure Garth can attest to this. The top 20% have just managed to outearn their wastefulness and have some leftover for the tfsa. The lack of uptake in the tfsa to this degree should not be viewed as entirely an income problem.

#112 Al on 11.13.19 at 2:35 am

To bdwy

$799,900
946 Dunn Ave
Victoria, British Columbia V8X2Z4

Thats in Saanich, not technically Victoria. Translating, its In a cheaper part of town. Also Victorias really not that much more expensive, if any, than other larger Canadian cities (van and to are obviously much more expensive) if you compare similar properties (relative location desireability).

#113 Where's The Money Greedo? on 11.13.19 at 3:40 am

Re: #25 Flop… on 11.11.19 at 5:31 pm
“What’s it mean? Simple. Don’t buy, unless you like paying too much. Eitel says prices will be $100,000 less by the Spring, taking an average detached down to the bargain-basement level of $1.4 million, therefore affordable to hairdressers and apprentice plumbers across the LM. Some parts of the market have hit bottom (prices down 30%) while others continue to sag. Overall, house values will drop.”-Thor Turner.

Things are still messed up here, boss.

Let me show you but one example out of many.

I remembered this Vancouver Special being on the market a few months back because of the distinct enclosed balcony.

https://www.zolo.ca/vancouver-real-estate/3027-east-20th-avenue

Well, when I was looking to see what was happening the other day it was back up.

I thought the deal must have fallen through.

This is Vancouver, and kooky crap happens, so I thought lets just check nothing stupid happened.

I found some stupid, alright.

Someone purchased it in late September 2019 for 1.33 and now a short time later it is back on for 1.18 and they seem destined to incinerate around 250k in less than 3 months.

The chance of buying this property, doing nothing and making a profit after expenses are pretty much zero.

Questions.

Why did they feel the need to pay well over asking, when there were similar houses available for the same kind of money?

Why did they pay over assessment, when most houses in the neighborhood are going at least 10% less than this number?

Were the buyers told to up their offers because other people were involved, when the detached market is pretty much flat as a pancake?

If the buyers didn’t do their due diligence, isn’t it the persons they hired responsibility to do so?

Why do people feel that it’s o.k to financially hobble someone…

M45BC
+++++++++++++++++++++++++
Came across a similar situation here in BC but with a used vehicle purchase an acquaintance had.
He had a BMW for sale at ~$18k for about 3 months. Couldn’t sell it, took the ad off for 2 weeks, then relisted it at $15.5k. Now this is guy is a former bank manager.
As soon as he relisted he got an offer. Guess what, the buyer offered the original price!
The bank manager was stupified, he asked the buyer if he knew he was now selling it 2 and a half grand cheaper and he said he knew, but will pay the original price.
So right away I said “laundering, it has to be” and the bank manager concurred, but sold it knowing this.
So if former bank managers are willing to take the laundered dough, how deep does this go?
That’s why there isn’t any apartments to rent in BC because the launderers have bought them all up and now have to buy vehicles for more than they’re worth to legitimise the money.
Also there is a newer development of rental apartments in my area (HUGE signs advertising this) that have been more than half empty for the last year, so I phoned them and asked since there were so many empty would they be willing to take a hundred or two off the cost to rent one of their suites.
She got mad and hung up.
The drug dealers have won and Canada is done…..We’ll never be able to compete price-wise with compromised “upstanding” Canadians selling out to these guys.

#114 Jenny Wang on 11.13.19 at 6:31 am

I say to Trudeau ” How dare you”. I pull a stern face and scath , ” You’ve stolen my retirement”. Hey, it worked for Greta.

#115 Buy? Curious? on 11.13.19 at 6:39 am

Garth! You won’t believe this! I was in a pub across the street from Toronto’ Old City Hall a couple hours after the Remembrance Day thingy and when the news broke Donald Cherry was fired. Do you know the craziness I overheard while chatting up the lovely bartender? A group of men (50-ish) say how Donald Cherry is the Donald Trump Canada needs. WHaaaa? It gets worse! A separate group said that they’re ready to go to war if Alberta withholds “the oil”. ALBERTA! Home of some of the best looking women on the planet!

What is wrong with you people? If I were a medical professional, I would diagnose them with Boomeritis or Foxtrophy.

The comment was edited. – Garth

#116 RVanzo on 11.13.19 at 7:18 am

I think you are forgetting something. Most people that have money on TFSA are well-off. As a new immigrant I always topped that first thing at the start of the year but almost everyone I know hardly ever sabe anything at all. The way things are going in Canada, it’s a matter of time before the government start to put it’s hand on the ppt. And you must be delusional to think that in 10 years time the amount you take from TFSA will not count towards income (I actually believe it will be somehow taxed at a lower rare to be honest, it will not remain tax free).

#117 not 1st on 11.13.19 at 8:12 am

TFSA is just giant bullseye for the govt. They might not tax it, but it will eventually be indexed to OAS and CPP.

So the govt is happy you are making big bank in there. They have offloaded their policy on to you, $5,000 at a time. That’s more OAS and CPP for someone who overpaid for their cardboard shack, didn’t save a dime and had $1000 phones every couple months.

Canada is all about penalizing people, workers, savers, investors.

#118 crowdedelevatorfartz on 11.13.19 at 8:20 am

@#100 Sunshowers
“the vast majority of Canadians don’t even have the initial $5000.”
+++++

Because they are frivolous spenders?
“I NEEEEED a mexican vacation.
“I NEEEEED a new car.
“I NEEEEED new golf clubs.
“I NEEEEED the latest iPhone.”

Saving money isnt easy.
Thats why most people are broke.
They’re not stupid or lazy. Just undisciplined.
Dont come whining on a financial advice blog and expect sympathy.

#119 waggily tail on 11.13.19 at 8:26 am

Sometimes I read your blog and wonder about the world you live in, we sharing the canuck dogtags and all. Yesterday in the back 40 I saw some ducks, chickadees, a raven, some crows, half a dozen squirrels, a heron, a buck, a big message from a bear, various other winged and skittering critters… and nearly had my heart seize up when a beaver slapped water in the creek as I walked by. Owls are hanging out in the day, and a few hawks. There’s also been a bobcat lurking around, so keeping a lookout. Clearing trails in the bramble patches so the tractor can get through. Birds are loving it. I could see a neighbour a km away up on a roof patching shingles. Great blackberry syrup this year. Getting requests! Life north of 50°, west of Eden.

If i had my tfsa topped up, I’d be a big wig around here. Don’t know if I could handle the responsibility of wealth. Fun to read about it, though.

#120 crowdedelevatorfartz on 11.13.19 at 8:31 am

@#112 Where’s the money
“Also there is a newer development of rental apartments in my area (HUGE signs advertising this) ”
+++++

I noticed a new development by Oakridge Mall a few weeks ago with a Huge “For Rent” signs slapped outside….oh my.
The worm has turned.
When developers realize sales are in the toilet and start renting condos…….
Give it a year with high priced rentals sitting empty and more new “rentals/condos” come on line…..
But dont worry.
The Real estate association will promote the “lack of inventory” as a “great time to buy”…
Even though they know the “rentals” will switch back to condos for sale in a heartbeat when market prices improve.

As perpetual real estate pumper Ozzie Jurock has been saying for 35+ years….” Its always a good time to buy!…..Somewhere!”

#121 Shawn Allen on 11.13.19 at 8:43 am

Of Debt Jubliees and Unicorns:

#65 Peter Laurin on 11.12.19 at 8:28 pm
Garth,

I have been trying to research information on “Debt Jubilee (DJ),” and the ramifications if it ever occurred. But there is a lack of accurate information on DJ. Would you be so kind as to provide info, pros and cons, of what will happen if a debt jubilee ever occurred. For example, one website indicated that money in your bank account is considered debt owed by the bank to you, and if a DB occurred money in your bank account would cease to exist. Thank you.

****************************
Well, I like your point that people asking for debt jubliee forget that might include debt (like deposits) that banks owe to them. Careful what you wish for!

Doubt Garth will be kind enough to be your unpaid research slave.

But here is a free con: The end of the economy. Credit is the grease of the economy. No one would lend after a jubilee. The economy could not function at all.

Is there no end to the nonsense people believe in. Debt Jubliee! Ridiculous in the extreme.

I read where the new Roman emperor used to sometimes forgive debt to Rome. Not sure any private debt was forgiven. If so it was a vastly different time.

There is zero chance of any such debt jubilee happening in our lives.

But wait over there, is that an actual Unicorn I see? Yes, yes it is! I’ll get back to you all with pictures shortly.

#122 crowdedelevatorfartz on 11.13.19 at 8:48 am

@#109 Smokie
“Too drunk to type…”
++++
No spelling mistakes….keep up the good work!
Its ok.
We were too sober to read

#123 crowdedelevatorfartz on 11.13.19 at 8:52 am

@#114 Bifocals
” Home of some of the best looking women on the planet!’
+++++
Either you need new glasses or to travel more.

#124 not 1st on 11.13.19 at 9:13 am

#120 Shawn Allen on 11.13.19 at 8:43 am

There is zero chance of any such debt jubilee happening in our lives.

—–

But there is 100% chance of a financial reset to something tangible backing the currency. Fiat is running its course. Even after the 2008 crash, debt across all sectors is up and fed tomfoolery is the central cause.

Someone is already insolvent turned away from the overnight lending window for nearly 2 months getting a nightly fed bail out. Must be someone big they are covering for.

The odds of a gold standard returning are zero. – Garth

#125 T2: Good luck finding job over 50 on 11.13.19 at 9:15 am

Ask it again: how does this end well?

Families have achieved a brand new level of stupidity, and now owe $2.24 trillion
which is bigger than the economy.
there are about 8.5 million families,
in the past 12 months they borrowed another $82 billion,
of which $64 billion was mortgages. (60% of 8.5 Mil families)

Total mortgage debt is $1.6 trillion
– which is a scary number since 40% of homeowners have no mortgage.

And we are all ok with this?

#126 Re-Cowtown on 11.13.19 at 9:23 am

People who oppose oil tanker traffic off either coast miss one key point:

Pretending that anyone, anytime in the past or at anytime in the future has ever or will ever live a life free of risk is an immature, childish way of looking at the world. Looking at only the costs, or only the benefits means that you are not in the adult world.

The adult approach to an issue like tanker traffic off Canada’s coasts, either East or West, is actually very simple; what is the cost/benefit of tanker traffic?

Fact#1.

Single Hull tankers, such as used on the Exxon Valdez are banned in Canadian and US waters. Only modern double hull tankers are allowed.

Fact #2. The only recorded double hull tanker spill occurred in Rotterdam in 2018. In this case the oil cargo itself was protected, but the ships bunker oil FUEL tank leaked. This happened because fuel tanks on ALL ships are not required to have double hulls.

If you’re concerned about fuel tank leaks on ships you would need to ban every ship, boat, ferry, cruise ship, cargo ship and navy ship in the world.

But back to the specific case of of modern double hull tankers. Do double hull tankers guarantee 100% safety? No, ut double hull tankers pose no greater risk than any other ship that Canadians welcome to their ports.

Accepting US double hull tanker traffic off the BC coast but opposing Canadian double hull tankers exporting makes no sense. The risks involved are comparable, or probably less in Canadian waters as Canadian regulators impose far more restrictions on modern double hull tankers than they do on any other class of ship, including massive cruise ships.

As to the benefit side of the equation, all of Canada benefits mightily when oil is exported to world markets at world prices, rather than being tied to the market scraps that Trump is willing to throw us. This means an additional $40 billion/year for schools, hospitals, roads, medicines and everthing else from hot meals to electric cars.

In summary, shipping oil in modern double hull tankers OUT of Canadian ports is safer than accepting US or foreign flagged tankers to ENTER either East or West coast shipping lanes.

So far, fear-mongering by the Eco-activists is forcing Canada to shoulder and endure the coastal risks of oil tanker traffic while enjoying none of the economic benefits.

Doesn’t sound like much of a deal to me.

#127 Dharma Bum on 11.13.19 at 9:24 am

“The federal government should consider capping lifetime contributions of TFSAs — at around $100,000 to $250,000 — to avoid creating more TFSA millionaires while shortcomings persist among lower-income Canadians,” says Ottawa statistician Richard Shillington.
——————————————————————–

We have already become a nation of full-on socialists, heading for communism. A confederacy of dunces.

Hum along now, Canadians:

https://www.youtube.com/watch?v=U06jlgpMtQs

#128 SunShowers on 11.13.19 at 9:26 am

#110 Al on 11.13.19 at 2:08 am

That income figure is for households, not individuals.

#117 crowdedelevatorfartz on 11.13.19 at 8:20 am

I don’t have (or particularly want) any of those things, and neither do most of my friends and classmates who are in the same boat as I am.

This is just a made-up story people like you tell themselves so they can justify the feeling of smug superiority they get when they look down their noses at people with less money than them.

#129 IHCTD9 on 11.13.19 at 9:27 am

#100 SunShowers on 11.12.19 at 11:03 pm
______

“Nor did I ever say that the TFSA haircut was the magic bullet to end income inequality in Canada. I was just pointing out how silly it is to give people who already have $5000 to stuff into tax-advantaged accounts room to cram in ANOTHER $5000, when the vast majority of Canadians don’t even have the initial $5000.”

Right, so that’s pretty much what I expected – it’s got nothing to do with helping the poor. It’s about sticking it to who you perceive as rich.

“Ideally, I would like to see capital gains taxed at 100% of the marginal rate, as well as a progressive wealth tax. Figure the rich folks would give a rip about that?”

Not nearly as much as the regular working schmo who’s got everything he has, and everything he’s ever gonna have – tied up into a house. A fat chunk of the GTA and YVR would get financially slaughtered for life as their home values would drop like a stone never to recover. After the dust settles the rich would still be rich, and the poor would be even more plentiful. In fact – the rich would likely get richer. They’d buy up foreclosed homes for pennies on the dollar just like they did in the US – and rent them out to the new landless underclass. Good plan SS.

Canada is not going to be able to raise taxes much more than they already are. It’s pretty well documented there is a line in the sand. Trudeau found the line when he tried to soak the rich and got less than half of the revenue he was expecting. France found it when they tried your wealth tax idea, so many millionaires left that revenues started going backwards. It doesn’t take too many to pack it in when you’re chasing the most lucrative taxpayers away before it starts to hurt. We’re pretty much at that point here where trying to get more out of folks will be exceeding difficult do matter what the government does.

One thing you can take to the bank SS – if you’re mad about the existence of rich folks, and you attempt to level the playing field via the government, they will get richer. That’s the way it goes. Figure on whatever the government tries to do via force – you’ll get roughly the opposite.

I’m walking proof of this – and I am not even rich. Just the lucky recipient of the benefits and perks government aimed elsewhere – but shot well wide of the net, no surprise.

#130 Jenny Wang on 11.13.19 at 9:39 am

DELETED

#131 Figure it Out on 11.13.19 at 9:40 am

“No one would lend after a jubilee.”

If 60/40 is the law, the 40 will go somewhere… Argentina floated a 100 year bond a few years ago, and it was oversubscribed. They’ve defaulted already… again. I’m old enough to remember when it was common knowledge that nobody would ever lend at a negative interest rate. Michael Milken was making $500 million a year back in the 1980’s selling crap credits to buyers who should have known better. We’ve recently returned to cov-lite bonds, and even PIK toggles have made a bit of a comeback. Plenty of companies who’ve never made a dime of profit in low moat industries (food delivery, growing weed, livery service, real estate subleasing, to name a few) are borrowing billions.

Lenders have short memories. Perhaps more precisely, old lenders are constantly retiring/dying/gaining wisdom and being replaced by new lenders who aren’t interested in history, or who are just lending somebody else’s money. Remember a couple of years ago when you could log on to a web site and lend your hard earned money to some bum, sight unseen (“P2P lending”)? The supply of dumb lenders fluctuates, but it’ll never run out.

#132 Jesse on 11.13.19 at 9:47 am

If you want to supercharge your TFSA, and you got balls of steel, consider leveraged ETFs (high risk, high reward). This one is all the rage on the Bogleheads forums right now, the asset mix is: 60% $TMF / 40% $UPRO

Do your homework on this one folks, but Trudeau and the Liberal Commies are coming for your hard earned money. We don’t have man options left…

Don’t even consider it. – Garth

#133 Lefty on 11.13.19 at 9:51 am

I am 90% sure they will cap the TFSA soonish to a max lifetime contribution. I did some basic math which may even be accurate:

Today say 5 million Canadians have 100k each in their TFSAs. That’s 500 Billion in total assets. Assuming an average 6% annual return, the cap gains the gov is missing out on TODAY is approx 7 Billion per year. That’s a pharmacare AND a pipeline right there. And fits the tax the rich narrative to boot.

#134 crowdedelevatorfartz on 11.13.19 at 9:52 am

@#127 Sun shines out your …….
“most of my friends and classmates who are in the same boat as I am.”

+++++

You own a boat?!?!?

#135 Shawn Allen on 11.13.19 at 10:00 am

Home Capital

up 12% to $32.50 this morning.

“Always assume Buffett is correct”.

Yes, he got out when they refused his offer to buy up to a more meaningful position. But he had already placed his seal of approval on the company by then.

Some were / are short this stock. Whoops.

#136 IHCTD9 on 11.13.19 at 10:10 am

#110 Al on 11.13.19 at 2:08 am

Yes the wages have been stagnant for a while but if you work full time and earn the median stagnant wage (51.7k AFTER tax in 2016 according to stats can, so it’s higher now).
_

I think you’re citing the median HOUSEHOLD income in Canada, not individual income.

Median 2015 household income Canada (gross) 70K

Median 2015 individual income Canada (gross) 34K

Just for fun:

Median 2015 household income (gross) in Toronto 66K

Median 2015 household income (gross) in IHCTD9’s hillbilly backwater 67K

#137 oh bouy on 11.13.19 at 10:20 am

@#127 SunShowers on 11.13.19 at 9:26 am
#110 Al on 11.13.19 at 2:08 am

That income figure is for households, not individuals.

#117 crowdedelevatorfartz on 11.13.19 at 8:20 am

I don’t have (or particularly want) any of those things, and neither do most of my friends and classmates who are in the same boat as I am.

This is just a made-up story people like you tell themselves so they can justify the feeling of smug superiority they get when they look down their noses at people with less money than them.
_________________________________

If smug superiority bothers you i’d recommend staying far far away from this comments section lol.

#138 TFSA Mix on 11.13.19 at 10:25 am

My TFSA mix is dividend stocks $121,000
slow and steady
Not sure if I am allowed to post actual names
SIS, APQ, ENB, BIP.un, QSR,FNV,CJT
10 percent bond fund and 10 percent cash
I am upping my cash as I will need 50,000 in two years
I have been very lucky as this has been a bull market.

Garth advice still holds for long term balanced funds held in ETFs, I like stocks so it worked for me.
For the record my portfolio was down $10,000 last December so its not for the faint of heart.

#139 LP on 11.13.19 at 10:26 am

#120 Shawn Allen on 11.13.19 at 8:43 am

Of debt jublilee – This was an Old Testament commandment (not one of those 10) that stipulated – among the Jews – that all debt was to be cancelled. I think this was to occur every 50 years but about that I’m not certain. In those days, one’s debt was secured with land. At the time of debt cancellation, all land reverted to the original land owner.

#140 Shawn Allen on 11.13.19 at 10:47 am

Ooh the debt is bigger than the economy

#124 T2: Good luck finding job over 50 on 11.13.19 at 9:15 am
Ask it again: how does this end well?

Families have achieved a brand new level of stupidity, and now owe $2.24 trillion
which is bigger than the economy.

********************************
These doomy posts never mention it is bigger than the economy of just a 12 month period. What is magical about the relation of debt to the amount the economy makes in the particular time it takes the earth to circle the sun? Why is that a particularly important time span as opposed to 11 months or 16?

Debt may indeed be to large but why this particular comparison?

The economy has been finacialising with increased use of credit for what about 2000 years? with few set backs. Are we maxed out yet?

People have doomed about debt for about the same 2000 years.

Will it end badly? Actually it will not end.

#141 IHCTD9 on 11.13.19 at 10:50 am

#132 Lefty on 11.13.19 at 9:51 am

I am 90% sure they will cap the TFSA soonish to a max lifetime contribution. I did some basic math which may even be accurate:

Today say 5 million Canadians have 100k each in their TFSAs. That’s 500 Billion in total assets. Assuming an average 6% annual return, the cap gains the gov is missing out on TODAY is approx 7 Billion per year. That’s a pharmacare AND a pipeline right there. And fits the tax the rich narrative to boot.
__

I guess it should go without saying obviously that – if the TFSA becomes capped and 100% taxable on gains, it’s just a non registered account at that point and worth less than dirt to an potential investor – poof!

A one time payout for government while investors get organized and find some other place to stash their funds, while simultaneously destroying any remaining trust the investing class may have had in Canadian government. (Much like Trudeau has done with foreign investment).

IMHO, if the government decided to “break the contract” regarding the tax free status of RRSP’s and TFSA’s, I’d have zero issues stuffing my cash where they can not see nor touch. That’d be it too – gone for good, never coming back.

A life time plan for saving for retirement (so the government does not need to support my wrinkly broke @zz) nuked like that would destroy all confidence in government, and the cash exodus would be a tsunami of trillions – and it would all be gone forever.

#142 Ronaldo on 11.13.19 at 10:51 am

Rex Murphy on the Alberta situation. Good read.

https://nationalpost.com/opinion/rex-murphy-this-is-not-a-standard-downturn-and-albertans-are-not-whining

#143 SunShowers on 11.13.19 at 11:14 am

#128 IHCTD9 on 11.13.19 at 9:27 am

Look, I didn’t want to get into specific policy proposals since I’m not running for office (least of all with Garth’s blog as my constituency. I’d have no chance), and I wanted to spare everyone the walls of text, so I kept things general. And in general, this works.

But if you want to get into the nitty-gritty, then the wealth tax would require a principal residence exemption (you know, like what we have now? which is why I didn’t explicitly bring it up) on gains both realized upon sale, and the yearly wealth tax assessment. Up to a reasonable ceiling, say something like an assessed value of $3 million (~10% over the average house price in Point Grey, YVR). Any higher than that and we’ll have people trying to shelter their money inside scale replicas of Buckingham Palace built on the outskirts of Barrie. Indexing the exemption ceiling to inflation would also help keep housing prices from rising much faster than the rate of inflation.

We can even exempt small business assets to up to a reasonable ceiling, since those are things we want to encourage, rather than discourage.

Regarding capital flight, something that we need to understand is that capital does not have a right to freedom of movement. The US taxes citizens who live overseas on overseas assets, and if you want to renounce your citizenship for tax reasons, they either deny it outright or hose you. No reason why we can’t be the same. We can use (part) of the revenue generated from the wealth tax and capital gains tweak to better fund enforcement on this.

In the midst of all this, wages would need to be raised as well. Hiking the minimum wage to a living wage on a municipality by municipality basis would be a good place to start looking.

#133 crowdedelevatorfartz on 11.13.19 at 9:52 am

lol I knew this was going to happen the second after I hit the submit button.

#144 Renter's Revenge! on 11.13.19 at 11:14 am

#139 Shawn Allen on 11.13.19 at 10:47 am
Ooh the debt is bigger than the economy

What is magical about the relation of debt to the amount the economy makes in the particular time it takes the earth to circle the sun?

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The amount of time it would take to pay off all the debt? I thought Warren Buffett uses that as a criterion for investing in companies. Not more than 5 years, or something like that.

I think a more relevant fact for countries is interest paid on debt as a percentage of total spending. Or growth in debt versus growth in the economy. Leverage is good until you become a slave to your lenders.

#145 Headhunter on 11.13.19 at 11:31 am

#75 Sold Out on 11.12.19 at 9:04 pm
#54 SunShowers

Born on third base, thinking they hit a triple.
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Preach! Yes I agree and see this [email protected]#$ everyday.”gloaty gloaty Mc @#$% face” thinking they did it all on their own with superior intellect and sh*t

#146 Jamie Dimon on 11.13.19 at 11:33 am

Hands down best nickname of all the greaterfool characters

#147 Ronaldo on 11.13.19 at 11:35 am

#86 Popeye The Sailor Man

Even if you can’t now the contribution room grows, and when you get that windfall, from a tax return, inheritance, proceeds from a sale, the bonus, a big raise, the better job, or you commute your work pension later in life you will now where to put it.
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Exactly. Take note Sunshine, it’s not all about what you can contribute today.

#148 not 1st on 11.13.19 at 12:00 pm

Partial gold, resource based backed fiat with built in crypto algos to keep dirty little fed hands off our money supply.

Never happening. Governments will never surrender their control over the medium of exchange. – Garth

#149 IHCTD9 on 11.13.19 at 12:00 pm

#143 SunShowers on 11.13.19 at 11:14 am
____

Yes, the complication levels increase quickly trying to sort through which tax payers are to get nailed, and which ones not. That’s why it never works out (look at my CCB payments and tax returns for proof). Total waste of time – the French millionaires left out of feeling targeted, not because they had to pay another X%. They were done being the beast of burden. If you want to make a plan that works – you’ll have to make sure the rich don’t feel like they are getting their butts kicked every year while others get CCB increases. Probably already too late after T2’s last 4 years.

“Regarding capital flight, something that we need to understand is that capital does not have a right to freedom of movement.”

I love it when lefty policy and PC culture kicks it’s own ass. I gave a good example of this yesterday regarding the reality of FNR’s vs the actual Law. Another good example on the PC front right now is how the Trans activists are successfully turning feminists into the latest new group of deplorables using the Feminists own tactics.

So is Canada going to disallow dual Citizenship then? Canadians with (Canadian Style) DC can send money back home like they’re paying a hydro bill. It’s a big deal for 3rd world immigrants to help their families back home – maybe for some – it’s the main reason they’re here. I’ve spoke to some who even said the Canadian passport itself was the prize.

There is NO WAY you can control Capital flight with the way Canada does DC – don’t even waste energy think up a plan. It’ll be the same outcome as us gringos illegally buying cigs and gas on the FNR’s – no matter what the law says, PC politics will rule on the ground (which means no enforcement of certain laws).

#150 Lorne on 11.13.19 at 12:02 pm

#104 Re-Cowtown on 11.12.19 at 11:22 pm
74 Lorne on 11.12.19 at 9:00 pm
#55 Re-Cowtown

So what, boo hoo. Everyone I speak to is sick of the nonstop Alberta whingefest. Welcome to the reality of being dependent on a boom and bust resource economy. So the Saudis kicked you in the ‘nads, man-up and get over it.
++++++++++++++++++++++++++++++++++

Spoken like someone who has no clear where their oil comes. Hint: Think polar bears. Oil tankers are coming through the Georgia Strait every day from Alaska.
………..

Spoken like someone who has no clear idea about oil tankers coming from Alaska to Washington state at Cherry Point. NONE of them go through Georgia Strait (now often called the Salish Sea). They travel well off the west coast of Vancouver Island and down the traffic lanes in the middle of Juan de Fuca Strait. I think I may have pointed this out to you before but I guess you only wish to believe what you want to believe.

++++++++++++++++++++++++++++++++++

The point that you’ve made is that you are OK with oil shipments off the BC coast.
…….
Yes, but the key word in your statement is “OFF” the BC Coast (considerably “off”)….which is where all the Alaska tankers travel on their way to Cherry Point in Washington. This is ENTIRELY different than transiting Burrard Inlet through the City of Vancouver but you do not seem to understand (or wish to understand) this significant difference.

#151 not 1st on 11.13.19 at 12:04 pm

haha global warming.

https://www.msn.com/en-ca/weather/topstories/deadly-arctic-blast-brings-30-inches-of-snow-to-michigan-and-30-degree-temps-to-florida/ar-BBWHyRz?ocid=spartanntp

How is that not climate change? – Garth

#152 Shawn Allen on 11.13.19 at 12:18 pm

Compare debt to GDP?

#144 Renter’s Revenge! on 11.13.19 at 11:14 am responded:

The amount of time it would take to pay off all the debt? I thought Warren Buffett uses that as a criterion for investing in companies. Not more than 5 years, or something like that.

I think a more relevant fact for countries is interest paid on debt as a percentage of total spending. Or growth in debt versus growth in the economy. Leverage is good until you become a slave to your lenders.

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Thank you. Buffett avoids companies with what he considers excessive debt. He has no five year rule.

Successful growing companies never really pay off their debts. They refinance them and the debt continues to grow as the company grows. No problem.

Agreed national debt should be compared to tax revenues not GDP. Comparing to GDP implies all GDP belongs to government.

Personal debt should be compared to personal income, not GDP which has little relation.

Yes, debt multiples can be far higher at lower interest rates. If they ever were relevant, Old rules of thumb like 3 times income are no longer relevant when the interest rate is vastly lower.

#153 Justin S on 11.13.19 at 12:57 pm

TFSA’s are great, but as a high income earner with limited cash at the end of the day, I choose RRSP over TFSA for the immediate tax relief.

#154 Shawn Allen on 11.13.19 at 1:06 pm

Crypto advocates

I think fail to realise that there is no barrier to doing fractional reserve lending in BitCoin just as gold was lent in paper certificates back in the day. Fractional reserve lending was certainly done in gold and in gold-backed dollars.

People with little money seem to be the ones that fret about the non-backed value of currency. Billionaires seem unconcerned.

#155 SunShowers on 11.13.19 at 1:34 pm

#149 IHCTD9 on 11.13.19 at 12:00 pm

I would like the CRA to be funded to the extent where they can easily differentiate between a blue collar, working class stiff sending part of their after tax income to their elderly parents in the Philippines, and a multimillionaire trying to hide their assets. I can’t imagine it would be that expensive, and I would expect it to be offset by the return on investment.

Hope that answers your concern!

#156 Sail away on 11.13.19 at 1:42 pm

#135 Shawn Allen on 11.13.19 at 10:00 am

Home Capital
up 12% to $32.50 this morning.
“Always assume Buffett is correct”.
Yes, he got out when they refused his offer to buy up to a more meaningful position. But he had already placed his seal of approval on the company by then.
Some were / are short this stock. Whoops.

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Haha, yes. Loving it, and loving the smug superiority. 400% gain in 2 years. I get way smarter when my stocks are winning.

#157 Remembrancer on 11.13.19 at 2:10 pm

#153 Justin S on 11.13.19 at 12:57 pm
TFSA’s are great, but as a high income earner with limited cash at the end of the day, I choose RRSP over TFSA for the immediate tax relief.
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One doesn’t prevent the other – use the tax refund for TFSA contribution…

Oh as a high earner with limited cash, maybe instead of waiting on a tax “refund” look at the expenses side of the equation?

#158 Leo on 11.13.19 at 2:10 pm

#44 AGuyInVancouver

lol. I always look forward to your entertaining trollish comments.

#159 NoName on 11.13.19 at 2:21 pm

Hey Stanly

Maybe just you and I are experiencing information differently. Now I know why.

https://www.mauldineconomics.com/connecting-the-dots/inflation-is-no-problem-unless-youre-poor

#160 NoName on 11.13.19 at 2:23 pm

Inflation not information, this gbord in on to me again…

#161 Shawn Allen on 11.13.19 at 2:39 pm

Ambiguous?

#156 Sail away on 11.13.19 at 1:42 pm
#135 Shawn Allen on 11.13.19 at 10:00 am

Home Capital
up 12% to $32.50 this morning.
“Always assume Buffett is correct”.
Yes, he got out when they refused his offer to buy up to a more meaningful position. But he had already placed his seal of approval on the company by then.
Some were / are short this stock. Whoops.

——————————–

Haha, yes. Loving it, and loving the smug superiority. 400% gain in 2 years. I get way smarter when my stocks are winning.

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Try to be more clear. Who are you saying is smug? Me, you or perhaps even Buffett? I guess me?

#162 Rebs on 11.13.19 at 4:08 pm

Is there any situation where the TFSA could eventually be taxed on withdrawal (gov needs new money, majority socialist gov, etc)?
Are contributions actually ‘protected’ in any way?
It would suck to forgo immediate tax relief (via RRSP) only to have to pay 30-40 years later …

#163 Al on 11.13.19 at 4:22 pm

“#110 Al on 11.13.19 at 2:08 am

That income figure is for households, not individuals.”

No its not.

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410030701

Select Full time in the drop down.

You’ll see the Median hourly wage for full time employee (but presumably not full year) is $25, average is $28.56 in 2018.

See also: https://www150.statcan.gc.ca/n1/daily-quotidien/180313/dq180313a-eng.htm

The number below on that page are AFTER tax.

https://www150.statcan.gc.ca/n1/daily-quotidien/180313/cg-a001-eng.htm

“In 2016, 11.5 million people worked both full year and full time. Median employment income for these workers was $51,700 in 2016, up 2.0% from 2012. Alberta ($59,000) had the highest level in 2016, while Prince Edward Island ($44,000) had the lowest. Since 2012, median employment income among full-year and full-time workers has risen in four provinces: Newfoundland and Labrador (+7.7%), New Brunswick (+6.3%), Manitoba (+5.0%) and Quebec (+4.7%)”

Median AFTER tax income for economic households of two or more people (regardless of how many hours they work) was $76,900 in 2015, couples with children was $94,200. That was almost half a decade ago.

https://www150.statcan.gc.ca/n1/pub/12-581-x/2018000/is-rd-eng.htm

One interesting fact on the last link is that canadians are spending on average 12K on transportation, which is absurd. Cars are a quick way to end up with no money.

#164 Sail away on 11.13.19 at 4:27 pm

#161 Shawn Allen on 11.13.19 at 2:39 pm
Ambiguous?
#156 Sail away on 11.13.19 at 1:42 pm
#135 Shawn Allen on 11.13.19 at 10:00 am
Home Capital
up 12% to $32.50 this morning.
“Always assume Buffett is correct”.
Yes, he got out when they refused his offer to buy up to a more meaningful position. But he had already placed his seal of approval on the company by then.
Some were / are short this stock. Whoops.
——————————–
Haha, yes. Loving it, and loving the smug superiority. 400% gain in 2 years. I get way smarter when my stocks are winning.
******************************
Try to be more clear. Who are you saying is smug? Me, you or perhaps even Buffett? I guess me?

——————————————–

Actually, I was talking about myself. You’re welcome to be smug with me, though.

Mostly a jab at whiny #128 Sunshowers who could choose to learn Buffett’s strategies and be rich but would rather stay where he/she is and bellyache instead.

#165 Rob on 11.14.19 at 7:11 am

You could argue that the tax free gain a home owner generates is creating a wealth gap between HO’s and renters. How much has your house gone up in value since the TFSA was unveiled? The critics probably don’t mind that tax break. My tax break good, your tax break bad.

#166 Sidewinder on 11.15.19 at 5:19 pm

If only the conservative party could be even 25% less racist they would never lose another election. Chinese, Indian and other immigrants are extremely socially and fiscally conservative, but they don’t feel like they have a home on the conservative party.

If you con voters would stop spewing your racist views all over social media you could have less taxes, less environmental regulation, more pipelines, lower immigration, hell Chinese and Indians would 100% go along with a Muslim ban!