Dr. Garth

Are you tired of Don Cherry, Greta, Justin and Jason the Barbarian yet? Good. Let’s talk about you instead. And, yes, the doctor is IN!

Here’s Matt, with his MSU: “I enjoy reading your daily words of wisdom it’s been truly eye opening for me and I feel that I definitely manage our family’s and my finances better, so thank you!”

Okay, go for it.

I recently sold all my mutual fund holdings with one of the big banks in order to switch to a cheaper ETF based, self directed portfolio based on the weightings that you talk about in your blog. From my not-so-extensive about trading volumes, I know the bigger the trading volume of the stock the better, I know ETFs are a bit different but also the same. Was wondering how come different ETFs investing in the same S&P 500 index can have drastically different volumes. Also, should I stay away from an ETF that has almost non-existent trading volume although it does invest in a fairly good trading underlying index?

It’s called liquidity, Matt, critical to sound investing. Exchange-traded funds are superior to mutual funds as you can buy in/out at any time during trading hours, at a value that’s instantly known. Never pick an ETF just because it has a sexy name or a super-low embedded management fee. Always check to ensure adequate trading volume. That way you can be assured of the ability to get out quickly should an asteroid hit, or your spouse files for divorce.

A few things to remember: assets with a higher trading volume usually have a tighter bid/ask spread. So you’re less likely to overpay. ETFs investing in large-cap companies are the most liquid. So the less risk, the more liquidity – and vice versa. In general, liquidity’s affected by the securities an ETF holds and by the trading volume of those underlying assets themselves. Stick with the big guys.

Now here’s Andy, from the GTA, who’s house-horny on behalf of his son. Thankfully, he married a girl who reads this trashy site.

He’s 30 and his wife 34 (newly wed earlier this year).  She has co-owned a townhouse in with her dad but recently sold….dad wanted the money from it.  Her share comes to about $100K.  My son has about $30K from savings….I expect I will come to the plate for $50-100K.   We have the funds available…age mid 60s in good health.

Homes they are looking at come in the $800-900 range (they are wanting to start a family soon).  I figure if they put down at least $150K they will have a mortgage of about $2500 per month….thrown on another $1000 for taxes and utilities.  Their combined incomes as teachers is about $150K giving them take home of $7,500 or so.   Sounds to me like they are being careful …even prudent.

My attitude is that, if you look at the longer term, any house they buy now should (?) be worth at least as much as they paid in 5 or 10 years down the road.   I do believe as you that we are in for a correction in the short or medium term.   If they rent, they will be paying at least that $2500 each month for anything decent….forgetting for the moment that you are renting someone’s investment….and they might dump it.

By my reckoning, you either pay 5 years worth of rent (about $150K) that goes to someone else….or you pony up for that $850K+ house and likely have an asset still worth at least that….and equity of at least $250K.  My daughter (a rabid fan of your blog BTW) tends to think they should wait for the correction/crash.

I say “a bird in hand is worth 2 in the bush”……even with a correction, they have a home they control and the likelihood of a comeback in value (slow or otherwise) on the horizon.  ROI on your down payment is a valid argument I suppose but, by renting at $30K a year, you are losing even more.  Any thoughts from you most welcome. Thanks for your consideration!!

Let’s recap. Son and squeeze newly hitched. No kids. They have $130,000 and net monthly income of $7,500. They could rent for $2,500 and save/invest a bundle. You want them to buy a suburban house for $850,000, pay $12,000 more a year than rent and carry a debt of $700,000, in advance of them starting a family which will increase costs and reduce income.

This is Boomer logic. Get over it.

There is no guarantee ticky-tacky, particle board McMansions in the outer GTA will hold their value. Nor that kids will come. Or jobs last. Or the marriage. Why would you push two young people who have just gone through the biggest event of their lives (so far) into more change and a financial crevasse? Maybe, Andy, you should back off, stop being a helo parent, give the kids space (and time) and listen to that intelligent young woman. They might even want to move away from you. I would.

And here’s Kim. We did a good thing. Opened her eyes about the TFSA.

I am one of the people you write about who used a TFSA than learned after many years they had me in the lowest growth and I made bupkis for money earned on it. I had no idea about investing and figured I would let the bank handle it. I was young and stupid and trusting . Somewhat smarter and lots older we still have money to invest but I don’t have the brains for it at all and my partner works so much just to keep us going he has no time to give it much thought as he is lucky to gets enough sleep to keep him going. We have 40 k to invest but no one will take us on as it is not enough. I will be back at work in the next year and we plan on putting $1000 per month away in our retirement. When you don’t have enough for the companies and no idea which ETFs to buy etc what do we do? The money has been sitting for many years as we figured we might as well just keep it rather than have it eaten up by fees from a mutual find. Do you take on clients with so little money but still want to invest?

Good for you, K. You’re on the path.

It doesn’t really make sense to work with a fee-based advisor, who takes zero commission from mutual funds or other financial products, when you have that amount. Fixed costs make that kind of elaborate service uneconomical until you have maybe $200,000. Then it works. But the good news is that there are several choices other than [email protected]

The robos are one. People with less than a hundred thousand and no tax planning or retirement issues can set up a basic portfolio for a cheap fee (.5%) at a shop like WealthSimple. Or you can open an account with an online brokerage operated by one of the banks (like iTrade or RBC Direct) or an indy like Questrade. That way you can pick your own ETFs, and learn more as you build your portfolio, or follow the online guidance of  DIYers like Couch Potato. Or you can email me for a suggestion or two. No charge. I’m a sucker for anyone who says ‘bupkis.’

97 comments ↓

#1 Shawn Allen on 11.13.19 at 4:08 pm

How to Snooze

Or you can open an account with an online brokerage operated by one of the banks (like iTrade or RBC Direct) or an indy like Questrade. That way you can pick your own ETFs, and learn more as you build your portfolio,

***************************
Agreed, in fact with only $40k just buy the likes of VBAL or VGRO and go to sleep. With only a $10 fee to buy more or even $0 in some cases buy another $1000 each month with the saved money mentioned.

#2 Rebs on 11.13.19 at 4:28 pm

Same-ish situation as Kim. We have $30K in Tangerine Balanced Portfolio, Asset mix:
Canadian, U.S. and International Equities 60.7%
Canadian Bonds 38.8%
Cash and other Assets, less Liabilities 0.5%

On a scale of 1-10, how good is that for now?
Should we consider switching to Wealthsimple?
I research most things intensely but don’t have time or dedication to do the couch potato thing.

#3 AP on 11.13.19 at 4:39 pm

I agree, VBAL and VGRO are a godsend for people that don’t know how to invest.

Open a Questrade account, ideally a TFSA, buy VBAl. And you are set until you have enough money for Garth.

#4 Robos work for me on 11.13.19 at 4:40 pm

Agree 100% on the Robo advice. WealthSimple have been doing well enough for me as I save to approach the professionals one day. I chose risk ‘8’, (as I plan to only ‘contribute’ for at least 2 decades minimum). Even though it equity weighted – there is still some fixed income stuff that Garth often talks about.

Current make up;
(Below is 80% Equity)
(VTI) U.S Equities – 20.2%
(XEF) International Equities – 20%
(EEMV) Emerging Market Equities – 14.9%
(XIC) Canadian Equities – 10%
(ACWV) Global Equities – 10%
(VUS) US Equities (CAD Hedged) – 5%

(Fixed Income 20%)
(ZFL) Government Bonds – 14.6%
(QTIP) US Inflation-linked bonds (CAD Hedges) – 5%
(CAD) Cash – 0.3%

Best of luck

#5 Lee on 11.13.19 at 4:42 pm

What would you consider too low a daily volume for an S&P 500 growth etf? How about a TSX 60 growth etf? Liquidity does not seem to be a problem at about 5,000 volume a day.

#6 Ustabe on 11.13.19 at 4:45 pm

@Kim:

My financial team gladly took on my (at the time) 22 year old sons. At the time they held only a TFSA, partially filled.

Perhaps you or your partner have a parent or close relative with higher end financial planning who could ask on your behalf?

Secondly, although I don’t use them, my credit union (which we use for Interac, ATM and bill paying only) offers financial planning and portfolio building that is leaps and bounds better, less conflicted and more client focused on their worst day than the banks are on their best.

#7 Always Lurking on 11.13.19 at 4:50 pm

Kim: Open a Questrade TFSA account. Deposit $40k. Buy $40k worth of XUU.TO. Regularly log in to buy more with contributions / distributions whenever you have enough for a share. Done. You’re welcome.

#8 NoName on 11.13.19 at 4:58 pm

Small portfolio, get target date fund, work like magic for me inside glorified RRSP called DC, actually, only thing to chose outside few index finds. I chosen those 10+yrs after retirement date year, bit more aggressive…

#9 FreeBird on 11.13.19 at 5:03 pm

Much needed info for younger readers with inherited fear/confusion of investing and their parents. Readers can only send others here and CCP etc and hope they avoid costly mistakes. Couch Potato has given great advice for years. It differs a bit on GIC and pref shares but most is on par with here. I’ve also shown others how to search this site for various topics incl more like today’s but these days most want info given and not work for it.

#10 As soon as I read "Dr Garth" on 11.13.19 at 5:21 pm

I just knew somebody gonna have a bad time.

#11 kommykim on 11.13.19 at 5:23 pm

RE:#7 Always Lurking on 11.13.19 at 4:50 pm
Kim: Open a Questrade TFSA account. Deposit $40k. Buy $40k worth of XUU.TO

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

XUU is just the US stock market. Kim needs some bond, international, and Canadian ETFs to go with that.
For a single ETF holding, something like VBAL is much better because it is a complete balanced portfolio in a single ETF.

#12 CEW9 on 11.13.19 at 5:29 pm

#5 Lee on 11.13.19 at 4:42 pm

What would you consider too low a daily volume for an S&P 500 growth etf? How about a TSX 60 growth etf? Liquidity does not seem to be a problem at about 5,000 volume a day.

it all depends on your holdings. If you hold a few hundred shares max, maybe an ETF that trades 5000 shares daily is ok. But imagine trying to liquidate even 10% (only 500 shares) of daily trading volume. Get in line, and be forced to take what’s offered.

If you own a few thousand shares or more… then it’s a Hard No. You want the option to get out when you want.

It’s like real estate in that sense. A high volume ETF is like a seller’s market. A low volume is a like a buyer’s market. Which would you rather sell in?

#13 BlogDog123 on 11.13.19 at 5:30 pm

Yep, going self-directed is better than [email protected] managed approach. Opens your eyes to something you should be involved in learning.

Eg. 60/40 split, with various ETFs recommended. Don’t go crazy trying to be exactly 60/40 or whatever your ratio. Rebalance just a few times a year. No micromanging the portfolio.

Compare your portfolio above to your bank’s balanced mutual fund portfolios and you pretty much have the same ratios of fixed, US, CAN, Int’l, and no individual crypto-venture-exchange-hot-stocks plz.

#14 RWZM on 11.13.19 at 5:37 pm

“Homes they are looking at come in the $800-900 range (they are wanting to start a family soon). I figure if they put down at least $150K they will have a mortgage of about $2500 per month”

Why didn’t you say anything about this woman’s math?

A mortgage on $900k house – $150k down payment = $3600 a month at 3% for 25 year amortization. Plus property tax + repairs + utilities = ~ $4600 / month minimum. If it’s an 800k house, still over $4000 a month after the down-payment.

That is not a small error. And it kinda makes all the difference.

#15 dsek on 11.13.19 at 5:44 pm

Garth’s advice on ETF liquidity is not entirely correct. The daily trading volume of ETFs is NOT indicative of how liquid it is. The reason is that there is a market maker (or more) for each ETF who can create liquidity on demand for people buying and selling ETFs. The real liquidity as Garth alluded to is actually determined by what the underlying securities are. If you are looking at an ETF holding a lot of large cap stocks like an S&P500 index ETF, it will be extremely liquid regardless of the trading volume of that ETF.

Conversely, ETFs which hold securities with lower trading volumes will be extremely illiquid. A good example is preferred share ETFs, many of which are actually illiquid because the size of the preferred share ETFs has grown so large as a percentage of the actual underlying holdings — something I think Garth has not really addressed or taken into account in his recommendations of them.

Disclosure: I work in the ETF industry.

#16 FreeBird on 11.13.19 at 5:47 pm

@Kim (and maybe Andy’s son and DIL?)

Both this blog and Couch Potato have covered setting up portfolios holding 2-3 funds. It simplifies the process for newer/younger investors while they learn and build enough savings where paying a ~1% fee for an advisor makes sense.

#17 HoweStreet.com on 11.13.19 at 5:47 pm

Ross Kay on HoweStreet.com Radio:
63% of Canadian Home Buyers Got More in 2019.
San Francisco is a Lesson for Vancouver.

https://www.howestreet.com/2019/11/12/63-of-canadian-home-buyers-got-more-in-2019/

#18 Neo on 11.13.19 at 5:51 pm

#4 Robos work for me on 11.13.19 at 4:40 pm
Agree 100% on the Robo advice. WealthSimple have been doing well enough for me as I save to approach the professionals one day. I chose risk ‘8’, (as I plan to only ‘contribute’ for at least 2 decades minimum). Even though it equity weighted – there is still some fixed income stuff that Garth often talks about.

Current make up;
(Below is 80% Equity)
(VTI) U.S Equities – 20.2%
(XEF) International Equities – 20%
(EEMV) Emerging Market Equities – 14.9%
(XIC) Canadian Equities – 10%
(ACWV) Global Equities – 10%
(VUS) US Equities (CAD Hedged) – 5%

(Fixed Income 20%)
(ZFL) Government Bonds – 14.6%
(QTIP) US Inflation-linked bonds (CAD Hedges) – 5%
(CAD) Cash – 0.3%

Best of luck

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

Word of advice. I’ve had Wealthsimple and Wealthbar for a few years now to test the Robo waters. Go with Wealthbar. Their website and app are more transparent about what your returns are over time and your returns will be consistently higher with them.

#19 Flanneur on 11.13.19 at 5:52 pm

@ #2 Rebs

If your not content with a tangerine index fund and only have 30k you will never be satisfied! Great fund has done better than robos. I keep hearing about how people need to switch from their tangerine fund to get a (so much better, a so much cheaper portfolio) with a robo. Sheesh. While you’re at it you should pick up the newest I phone so you don’t miss that trend as well. The whole point is to stick with a good plan until you’re swimming then call Garth.

#20 Andrewski on 11.13.19 at 6:09 pm

Re: Ustabe. Good idea, piggy-back, if you can, on parent’s or family’s investment advisors. For example, RBC Royal Circle (minimum $250K book) clients get extra input, even though it’s self directed investing.

#21 Albertan Forestry Trunk on 11.13.19 at 6:27 pm

Thanks for your advice Garth. I have been reading your blog for quite some time and finally opened up a TFSA and went with a robo adviser in a low fee ETF.
Had I not read this blog and was naive like most people, I would have bought mutual funds at a big bank.

#22 Sail away on 11.13.19 at 6:42 pm

For Kim,

I’d strongly recommend opening a self-directed TFSA in your bank, then choose one of the ETF portfolios from the Canadian Couch Potato website. Doing this within your own bank allows simple cash transference between accounts. Exact procedure as follows:

1. Open Self-Directed TFSA. You’ll probably need to make an appointment to do this.
2. Transfer funds from checking/savings account to TFSA
3. Purchase ETFs through web broker- make one single small buy first to ensure you understand the system. When you’re comfortable, buy your whole portfolio.
4. Done

I or many others here could answer any questions that come up. Make your TFSA appointment (#1 above) now.

#23 Gul Breeze on 11.13.19 at 6:43 pm

I sold my precious metals mutual fund, in my tfsa in late August, realizing a 46% gain for the year. Strangely, I had no clue it was peaking at that time. I cashed out due to environmental concerns.

My broker took the money and put it into an American bank, savings account for a 3% yield until I figure out what to do with the money. I will likely wait until well after the U.S elections to see how things shape up.

The ‘elites’ are currently going to cash. I would love to be a buy and hold investor and will when it makes sense. Right now, it doesn’t.

Your broker is wrong. – Garth

#24 Penny Henny on 11.13.19 at 6:43 pm

Speaking of, any suggestions here for an international ETF minus US. I have some VDU but trading volumes are very low

#25 Robert Ash on 11.13.19 at 6:47 pm

Great blog today, back to some Financial Advice, and good advice at that… I would be interested in any Discussion about Fixed Income and the Bond Market. It seems, to me, that there is an unprecedented amount of factors affecting Fixed Income, and it would be great to get Garth’s et Als.. commentary.
It seems to be an area, that is hard to navigate today, given the Monetary Policy of Most Developed Economies…

#26 BobC on 11.13.19 at 6:48 pm

Back to financial matters. Cool.
I’m 70 soon to be 71. I’m still investing new money every month even after gifting to my grandkids. My money is still in 60/40 ETF’s.
My question is at what age should someone change to 70/30 or even 80/20?
If you have a rule and covered this in the past I apologize. I must have missed it.
Thanks

Are you dying? Then stick with the plan. – Garth

#27 CJohnC on 11.13.19 at 6:50 pm

Kim, Just take the gift from Garth “you can email me for a suggestion or two. No charge. I’m a sucker for anyone who says ‘bupkis.“.

And run from the comments section.

#28 David Pylyp on 11.13.19 at 7:07 pm

All those homes that had an incredible renovation; will also have an incredible MPAC Assessment reset.

So, that deal with really low taxes that was under renovation for the last 6 years will move to Market Value Assessment after you close on the property.

Property Taxes are a few years behind but they will catch up.

Be prepared for the MPAC reassessment in Toronto

David Pylyp
Toronto

#29 Sail away on 11.13.19 at 7:16 pm

#27 CJohnC on 11.13.19 at 6:50 pm

Kim, Just take the gift from Garth “you can email me for a suggestion or two. No charge. I’m a sucker for anyone who says ‘bupkis.“

And run from the comments section.

—————————————-

Yes, definitely take Garth up on his offer. No reason to dis the commenters, though.

#30 Ponzius Pilatus on 11.13.19 at 7:31 pm

This greedy Millionaire does not understand what a donation is.
It’t a gift, you don’t expect anything in return.
No wonder people hate rich people.
https://theprovince.com/news/local-news/having-donated-30-million-peter-allard-wants-his-name-put-on-all-ubc-law-degrees/wcm/c843c5ca-2bfc-42b9-9292-1f723c37eafc

#31 Nonplused on 11.13.19 at 7:32 pm

Andy and his wife should worry about the kids if they really want them before the house. At 34, she is moving into “high risk” territory starting next year.

Not that I am an advocate that people need to have kids in order to be happy, it’s a lot of commitment and there are no guarantees, and the world doesn’t seem to be short of people. But if you really want to have kids it’s something that should be planned carefully because the “window” has not increased with rising life expectancy. Yes, I know, I don’t need the lecture, many women have children after the age of 35, but risks start going up dramatically. By 40 it is not a recommended idea. And that’s just from a health perspective, imagine your kids finally moving out when you are 65! Best to have them when you still have the energy to chase them around.

As Garth has often reminded us, children don’t care whether you own the house or not. I rented until my son was school age and he’s no worse for the wear.

It is a function of the nature of modern society that people tend to marry and have kids later in life than previous generations did. Some of this is unavoidable with many people staying in school well into their 20’s now (since Andy and his wife are both teachers I assume they did). But the effect this has had is to reduce the child-bearing window considerably, because nothing has happened on the other end.

And yes, I lived through it. My wife was 35 when she got pregnant, and we had to do “the tests”. There was quite a scare after the ultrasound. Luckily the genetic tests came back the way one would hope but for a good 24 hours there we were facing a decision we had not prepared ourselves for. It was horrible. I have friends who were not so lucky. If you want to see a grown man cry in a bar, just get on this subject. And this was years later before he was finally able to bring himself to disclose what happened.

So if Andy and his wife want kids in a serious way, that should be priority number 1 and they should probably start now.

Sorry to be so stark about it but this is advice people need to hear. Some things can’t wait. Houses aren’t one of them.

#32 crowdedelevatorfartz on 11.13.19 at 7:32 pm

https://www.reuters.com/article/us-italy-weather-venice/climate-change-blamed-as-floods-overwhelm-venice-swamping-basilica-and-squares-idUSKBN1XM2Y5

“Nope. No climate problems. Just same old same old.”
ostrich-apocalypto2019

#33 CJohnC on 11.13.19 at 7:36 pm

#29 Sailaway,
Not dissing.

Just kind of indicating that it will be a bog of mediocrity with probably to many conflicting recommendations.

#34 Nonplused on 11.13.19 at 7:37 pm

Sorry, I meant “Andy’s son”.

#35 crowdedelevatorfartz on 11.13.19 at 7:52 pm

@#154 Sunshine ….always makes me …happy.

“easily differentiate between a blue collar, working class stiff ……. and a multimillionaire trying to hide their assets.”

+++++

Hate to break it to you but…… most of the “blue collar, working class stiffs” …. I know……ARE multi millionaires….

Perhaps you should rethink that University degree ( and huge debt) and go get you hands dirty doing real work…….. for $100,000, 200,000, 300,000 per year…. instead of the pc indoctrinated drivel that passes for a “degree” in the degree factories infesting the nation.

But even that kind of money will trickle through your fingers if you’re a spendthrift wastrel. Or divorced.

#36 Long-Time Lurker on 11.13.19 at 8:00 pm

Keep an eye on Hong Kong.

#37 SoggyShorts on 11.13.19 at 8:03 pm

Questrade + VBAL or VGRO Is basically free if you have $5,000.
Buying more shares is also free.
The only cost is when you sell and that is capped at ten bucks.

Professional advisors offer 3 main things:
1. A more nuanced portfolio than VBAL including, for example, some ETFs listed in USD, preferred shares, and REITS.
2. Splitting your investment assets among your various accounts (TFSA,RRSP and non-reg) in the most tax-advantaged way.
3. Big picture advice like retirement planning, setting up RESP for the kiddies, advice on major purchases(like a house or RV) and even hand holding when the media says scary things.

Beware the advisor who focuses on #1 above: the further they get from a basic portfolio, the more likely it is that they are a cowboy seeking “alpha” and think that they can beat the market(95% of them dont) even on this blog full of braggarts only 3 or 4 claim to do so.

Note: I personally use questrade but dont own VBAL or VGRO, as I wanted some tweaks like those listed in #1 and I’m more aggressive than 60/40.

Since January VGRO (my benchmark for comparison) is up about 15% and I’m up about 19%. That 4% difference comes with more risk and takes some work to set up and maintain.

#38 Dogman01 on 11.13.19 at 8:07 pm

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

This is what Artificial Intelligence could do for us……a referee that is not biased, one that reasonable people could use as a mediator.
It could guide decisions, tax policy etc. based on principles of equality of opportunity.

The best argument against democracy is a five-minute conversation with the average voter.” – Winston

Hans Roslin has 1M views on his incredibly informative talk. https://m.youtube.com/watch?v=FACK2knC08E; And Katie Perry has 570M on Swiss Swish. Oh yeah, we’re screwed -. #94 Sebee on 11.10.19 at 9:19 pm

“since few men are wise enough to rule themselves, even fewer are wise enough to rule others.” – Edward Abbey

Bring on the benevolent rule of our Robot Overloads!

#39 Dogman01 on 11.13.19 at 8:10 pm

Overlords……

I may be terminated as I am a flawed machine.

#40 tccontrarian on 11.13.19 at 8:17 pm

Dr. Garth

November 13th, 2019 | Book Updates | E-mail this blog post to a friend

* * * * * * *

Are you sure you can use “Dr. Garth”, legally? Unless you hold a Ph.D. that is. Make sure you have it passed by your lawyers.

Andy (lucky that you married a smart woman), please listen to her. Patience is a virtue! In real terms (as opposed to nominal, something that most people don’t distinguish BTW), Canadian RE is probably NEVER going to be as overvalued as now. So, NO you will never ‘recover’ from this, from an investment point of view.

All this QE and currency devaluation that is only going to accelerate over the next few years, will usher in (unexpectedly of course), higher-than-normal inflation rates. Central Banks almost always REACT to economic data (ie. they’re rarely proactive and are late to the party); guess which ‘tool’ they will bring to the table when inflation fears rise?

@Kim
Given that everyone here is an ‘expert’ investor freely dispensing of their ‘wisdom’ on ETFs, I will do same. I’m not a ‘expert’ but I am contrarian (or try to be).
With these 3 ETFs I list below, if bought at todays prices, you’re likely to double your money over the next 12 months (ie. +100% gains). They’re not a ‘buy-and-hold forever type and in fact, I think nothing is!
Here’s what I’m offering you:

XES (Oil Services)
GDXJ (Precious Metals)
HDGE (to hedge against a likely decline in SP500 stocks)
(BTW, all very liquid and in USD)

Now, if you’re content with being the market (ie. never hope to ever ‘beat’ the market), stick with VBAL and VGRO as a couple others mentioned.
Not my cup of “T” though…

Good Luck – TCC

#41 Long-Time Lurker on 11.13.19 at 8:18 pm

#32 crowdedelevatorfartz on 11.13.19 at 7:32 pm

https://www.reuters.com/article/us-italy-weather-venice/climate-change-blamed-as-floods-overwhelm-venice-swamping-basilica-and-squares-idUSKBN1XM2Y5

“Nope. No climate problems. Just same old same old.”
ostrich-apocalypto2019

>Same old, same old.

>Fossil-fuel-induced-global-warming-sea-rise circa 2600-2500 B.C. (Sarcasm.)

31 AUGUST, 2015 – 04:01 APRIL HOLLOWAY

Huge Ancient Greek City found underwater in the Aegean Sea

The Hellenic Ministry of Culture, Education and Religious Affairs has announced that remnants of a massive Bronze Age city have been discovered submerged in the Aegean Sea. The settlement, which dates back approximately 4,500 years, covers an area of 12 acres and consists of stone defensive structures, paved surfaces, pathways, towers, pottery, tools, and other artifacts…

…“The walls that were found by the team are contemporaneous with the pyramids at Giza that were built around 2600-2500 B.C., as well as the Cycladic civilization (3200 to 2000 BC), at the first Minoans on the island of Crete (2700-1200 BC),” reports Spero News. “However, they precede the first great Greek civilization, the Mycenaean (1650-1100 BC), by one thousand years.”…

https://www.ancient-origins.net/news-history-archaeology/huge-ancient-greek-city-found-underwater-aegean-sea-003709

>Pre-fossil-fuel-usage sea level rise of about 100 meters theorized.

…Dwarka, India
This ancient city was considered a myth until divers discovered ruins off the coast of the Indian state of Gujarat in 2000. The Hindus believe that Dwarka was built by Lord Krishna and once contained 70,000 palaces. Researchers from India’s National Institute of Ocean Technology found the ruins in the Gulf of Khamabhat. Nobody knows who built the cities submerged in the Arabian Sea. The ruins could be some of the oldest in the world: carbon dating has revealed that wood dredged from the site dates to around 7400 BCE, or around 9,000 years ago, predating any known civilization. It is not known how or why the city sank, but scientists believe the Arabian Sea was 100 meters lower than its current level as recently as 2,000 years ago….

https://www.enkivillage.org/the-mysterious-underwater-cities.html

#42 crowdedelevatorfartz on 11.13.19 at 8:19 pm

@#30 Potty Trained
“This greedy Millionaire does not understand what a donation is….”
+++++
Sorry Potty.
That “Greedy Millionaire” donated $30 million dollars to the UBC Law faculty……with conditions.

He wanted his name on each diploma as a benefactor to the UBC branch of their Law department that bares his name….
If UBC didnt want his THIRTY …..MILLION…. DOLLAR DONATION……they could have refused it.
But ….they…… didnt.
Because they’re greedy?
Either way.
They have failed to honour his conditions.
Ironically, a Lawyer’s donation to a Law School has gone to Court and will make huge money for……lawyers.

#43 not 1st on 11.13.19 at 8:31 pm

#32 crowdedelevatorfartz on 11.13.19 at 7:32 pm
—-

You mean the city at sea level that’s been sinking for 1000 yrs is still sinking. Wow, who would have thought. Does Greta know?

#44 crowdedelevatorfartz on 11.13.19 at 8:33 pm

Hmmmm
Anyone think that the Chinese Army might….just might….roll into a few Universities in HK this weekend?

https://www.reuters.com/article/us-hongkong-protests/protesters-blockade-universities-stockpile-makeshift-weapons-as-chaos-grips-hong-kong-idUSKBN1XN04N

#45 NoName on 11.13.19 at 8:34 pm

#32 crowdedelevatorfartz on 11.13.19 at 7:32 pm
https://www.reuters.com/article/us-italy-weather-venice/climate-change-blamed-as-floods-overwhelm-venice-swamping-basilica-and-squares-idUSKBN1XM2Y5

“Nope. No climate problems. Just same old same old.”
ostrich-apocalypto2019

Venice is not folded because of the rain its November, and November is hi tide month. highest recorded tide levels were in 1960-s when tide was recorded 6cm less than 2m.

you shoud change a name to fartoclimatoapocalipto…

#46 NoName on 11.13.19 at 8:35 pm

@fartz

how many people with umbrela do you sea?

https://www.thesun.co.uk/news/10335517/venice-flooding-2019-dead/

#47 Nonplused on 11.13.19 at 8:41 pm

#30 Ponzius Pilatus

I agree putting someone’s name on a degree is sort of over the top, but lots of buildings are named after people. Haskayne School of Business and Scurfield Hall come to mind just at the UofC.

And I am not sure I disagree with it. I donated twice to the zoo in the name of my children and their names still scroll by on the screens they use now. Would I have donated without recognition? Yes. But did they drive the number up to a targeted amount? Probably. Call me selfish if you like but the campaign got me to donate just that much more.

And yes I know a lot of people don’t like zoos, but go there on a sunny summer’s day and just look at how many people are there learning about nature and conservation. They aren’t what they once were, they really have morphed from places of cruelty and exploitation to institutes of outreach and conservation. The Calgary zoo may have saved the burrowing owl in Canada all by itself.

#48 Buy? Curious? on 11.13.19 at 8:54 pm

Garth! *removes monocle and tips Top hat*

Greetings and I respectfully accept your edits! You are correct though I am right.

I’m surprised at generational frontline confrontation. Hazel Macallion, the 90+ year mayor complaining that an 85 yr old gentleman (I know you’d my real Werd) lost his job defending and old person meme? Fight for my freedom? Really? Have you tried switching phone contracts?

#49 NoName on 11.13.19 at 9:06 pm

#31 Nonplused on 11.13.19 at 7:32 pm

Interesting post, i have son with downs, in whole honesty when i found out it took me “only” 3 months to put my self together, some people would like to argue that i am not there yet, but i assure you that they are miss informed. (and yes i did cry like crybaby)

I remember talking to the lawyer about taking a possesion of the house 2-3 days earlier because wife went wife went to labor we had to ask old owner if is possible to empty garage so i can load some of my stuff. So to think that house will bring some bliss is funny if my family is used as an example… We are probably best of the worst examples.

#50 joblo on 11.13.19 at 9:15 pm

DELETED

#51 NoName on 11.13.19 at 9:21 pm

#43 not 1st on 11.13.19 at 8:31 pm
#32 crowdedelevatorfartz on 11.13.19 at 7:32 pm
—-

You mean the city at sea level that’s been sinking for 1000 yrs is still sinking. Wow, who would have thought. Does Greta know?

Funny you mention that, i was looking in how fast veniece is sinking there is 2 recent studies one that clains 1-2mm per year and second one that states that 1st study dident take in account some stuff that sinking rate is 2x as much.

Also i came acros similar article that citi sank 120mm for some period of years (probably 100) and in same article sates sea level rose 110mm for same time period.

https://www.livescience.com/19195-venice-sinking-slowly.html

#52 Andy's intelligent young daughter on 11.13.19 at 9:49 pm

Thank you, Garth, for answering my dad Andy’s note! And for the flattering remarks…at least towards me :)

In his defence, Andy was the least helo parent around -he was big into personal responsibility and accountability- but I agree that his RE POV may be skewed by greener pastures past (sorry Dad).

I’ve just moved back to Toronto from London (England) and absolutely cannot believe how much the cost of living has jumped in six years. Seems to be no shortage of people in town who insist that “it’s different here”, but honestly, the fundamentals and rate of change make me nervous. Don’t get me started on personal debt levels.

What I loved about the UK was the lack of stigma associated with renting – most of us expats did so, even the MDs making serious bank. Our self-worth wasn’t tied to a pile of bricks. Instead, we got to travel the continent, be mobile and try new things, and I wouldn’t trade that experience for the world.

I think what Andy’s trying to insinuate is that family begets stability. I’d be interested to hear the experiences of young families trying to juggle it all in the GTA…

Cheers all!

#53 Gulf Breeze on 11.13.19 at 10:32 pm

Garth–“your broker is wrong.”

Famous last words, Garth. We’ll revisit this post same time next year and then again in 18 months.

#54 Lisa Power on 11.13.19 at 11:16 pm

#31 – the age and pregnancy thing being high risk is not based on actual data. This a myth that docs went by years ago with no scientific data is currently being used and less and less as the medical community realizes their bias. The biggest predictor of a healthy pregnancy is the health of the mother and her lifestyle habits (e.g. diet, exercise, stress, amount of sleep, etc). I had my first son at 31, my second at 36 and my third at almost 45. My last two were home births and my last son was my easiest delivery and recovery, and while all my boys were born healthy, he was the also the biggest. It should be noted that I very active on all pregnancies but again was the most active on my last as I skied until 20 weeks, biked until 30 weeks and hiked until 36 weeks. There is no better time to have kids, it really is an individual thing based on your own factors.

#55 Ronaldo on 11.13.19 at 11:19 pm

#1 Shawn Allen

Agreed, in fact with only $40k just buy the likes of VBAL or VGRO and go to sleep. With only a $10 fee to buy more or even $0 in some cases buy another $1000 each month with the saved money mentioned.
————————————————————-
I too agree with your advice of VBAL as I know you have mentioned that on here before.

I personally have not gone the ETF route as I have had a lot of success as a DIYer with a fund company that I have dealt with going on 30 years now.

My portfolio at the moment is 60.7 equity 39.3 fixed and is made up of 6 funds.

The equity portion is Canadian equity 25.2%, US equity 19.7%, International Equity 15.8%

My MER stands at .77% Returns to Oct. 31st = 13.64% net of fees.

VBAL is 12.15%. The Balanced Fund itself with my fund company is at 12.6%. That fund was down 18% in 2008 and recovered the following year.

I have had these funds now for several years and rarely have to make adjustments.

#56 Karl on 11.13.19 at 11:20 pm

Hey now! glad you’re plugging Couch Potato portfolio. Dan B. Has done great things for Canadian DIY investors and gives simple, straightforward, easy to follow suggestions to achieve a cheap, well diversified portfolio. Ditto Questrade that offers zero fee ETF purchases.

#57 Barb on 11.13.19 at 11:41 pm

“…Or you can email me for a suggestion or two. No charge. I’m a sucker for anyone who says ‘bupkis.’”
——————————-

Nah…Garth’s an angel.

#58 Fortune500 on 11.14.19 at 12:20 am

#52 Andy’s intelligent young daughter we expats have that same view when looking at Canada from the Gulf. Whenever we are home all everyone talks about is their home and what they are doing to it, or what someone else’s on the same block sold for. It is so dull.

Our family has traveled to 53 countries and counting, and our three children (under 6) have been to 10 of those. We have spent summers in Canada and have a million dollar portfolio to boot in our late 30s.

But the idea of coming back now makes less and less sense. Is it worth paying these prices to signal to my parents generation that we have ‘made it’?

In the end, I’m not sure the lack of flexibility and options are worth owning a piece of ‘The Canadian Dream’ anymore. Not for us anyways.

PS, I thought your dad was pretty reasonable, if not dated in his view on RE

#59 Smoking Man on 11.14.19 at 12:28 am

So there is black young woman. She’s been hanging out at our apartment. Been there all day. Shivering, hungry and cold.

I ask her is everything ok, do you need a blanket, a cup of tee, a bathroom break.

She said I’m fine…. She has an expensive dress and hand bag that makes labourgines look like an old Ford..

Called the cops.

Social workers show up and the cop who turned the heat up in the cruiser.

Social workers showed up and she was taken away in an ambulance…..

Get the keys to my new house tomorrow..

Renting sucks.

But lots of drama ..

#60 unconciously unaware on 11.14.19 at 12:51 am

Avoid using non-registered accounts with Questrade as a beginner investor!

…with all my personal research into investing and the different platforms, I don’t remember seeing this advice anywhere. Questrade doesn’t provide a gain/loss summary nor keep track of the Adjusted Cost Base (ACB) of the different investments (although they give you the data to calculate it on your own). Further, only the proceeds of disposition are sent to CRA (T5008). Avoid a big tax bill (or an accounting bill/frustrated accountant) by using a registered account!

Any other platforms like this? Any services out there that offer ACB calculations for questrade day-traders in non-registered accounts? I don’t think this is a service that accountants typically do.

#61 Nonplused on 11.14.19 at 1:56 am

#49 NoName

I am sorry if I offended. I have every respect for parents who raise down syndrome children, and I find those children to be some of the best, happiest, and most caring children around. For some reason those with the down gene don’t seem to have the hate gene. But it does raise some serious questions, because it is a dead end. I have every respect for you for carrying through with it. You have my love and respect. But I also respect my friend’s decision not to.

There would be a lot less crying if women realized they only have until they are 30 to make their major life decisions. Men don’t really have a lot longer either, unless they are extremely rich.

For those of you who don’t know, sperm is created daily, and although there is some decay it is not much and the bad sperms usually don’t win the race. Women are born with all their eggs and they age with the woman and also run out. You can only leave the carton in the fridge for so long. Use them or lose them.

Adoption is always an option though. I have met many fine kids through my son’s activities that were adopted for one reason or another.

60 is not the new 40. 40 is still the end of the road.

#62 Nonplused on 11.14.19 at 1:59 am

#49 NoName

I am sorry if I offended. I have every respect for parents who raise down syndrome children, and I find those children to be some of the best, happiest, and most caring children around. For some reason those with the down gene don’t seem to have the hate gene. But it does raise some serious questions, because it is a dead end. I have every respect for you for carrying through with it. You have my love and respect. But I also respect my friend’s decision not to.

There would be a lot less crying if women realized they only have until they are 30 to make their major life decisions. Men don’t really have a lot longer either, unless they are extremely rich.

For those of you who don’t know, sperm is created daily, and although there is some decay it is not much and the bad sperms usually don’t win the race. Women are born with all their eggs and they age with the woman and also run out. You can only leave the carton in the fridge for so long. Use them or lose them.

Adoption is always an option though. I have met many fine kids through my son’s activities that were adopted for one reason or another.

60 is not the new 40. 40 is still the end of the road.

Oh great I am going to get another double post error. Garth, get rid of that cloud service.

#63 BC_Doc on 11.14.19 at 2:56 am

Andy’s Wicked Smart Daughter—
I didn’t own a home until I was out of residency for a couple of years (age 37). We happily rented until then with three small kids under feet (we were in Montreal which has a great rental culture). At this point in my life, even with lots of money saved, if I didn’t have a house, I wouldn’t buy one now (too pricey even in the BC Interior
— I consider them a bad investment). RE still needs to correct (crash?) here.

Kim— Couch potato investment is a breeze. I hold VXC-T, VCN-T for my stocks. I split my bonds between VAB-T and VSB-T. It’s super simple. I look at it a couple of times per year (appropriate for index investing), generally do nothing/make no changes, then go back to living my life.

Garth— Did you see this upsetting article? It’s a pretty terrible outcome for the client. At some point, will you write a piece about the importance of hiring financial advisers who operate in a fiduciary capacity?

https://www.cbc.ca/news/canada/british-columbia/vancouver-canuck-financial-advisor-lawsuit-1.5357298

#64 Pulp Faction on 11.14.19 at 4:02 am

Is the global economic slowdown due to recent american trade practices/protectionism, or is it cyclic in nature ?

#65 earthboundmisfit on 11.14.19 at 6:41 am

Hey now! glad you’re plugging Couch Potato portfolio. Dan B. Has done great things for Canadian DIY investors and gives simple, straightforward, easy to follow suggestions to achieve a cheap, well diversified portfolio. Ditto Questrade that offers zero fee ETF purchases.

Couldn’t agree more about Dan B., and the Couch Potato philosophy but he has gone “too mathy” since hooking up with Justin Bender.

#66 NoName on 11.14.19 at 8:05 am

#61 Nonplused on 11.14.19 at 1:56 am
#49 NoName

You didn’t offend no need to apologize, not at all. I did find your post very nice, there nothing in it that offends. Families make choices, we made ours.
I just shared tiny bit from my life. That’s it.

I don’t get easily get bent out of shape, perhaps, maybe when it come to climate change subject…

And on a side note wife handled news much better, probably because she is better person that I am.

#67 crowdedelevatorfartz on 11.14.19 at 8:11 am

@#45 noname
“you shoud change a name to fartoclimatoapocalipto…”
+++++

You win the prize for the most well versed rebuttal for all the anti climate change deniers that posted….
You can claim your plastic trophy at the recycling depot

#68 crowdedelevatorfartz on 11.14.19 at 8:55 am

“Nothing to see. Nothing to worry about. Its the same old same old….”
Climate Ostrich Apocalypse2019

https://www.reuters.com/article/us-australia-bushfires/lack-of-forecast-rains-to-prolong-australian-bushfires-threat-idUSKBN1XO01C

#69 not 1st on 11.14.19 at 9:04 am

Wow that’s weird, the world actually looking for heavy crude now that Venzeuala went broke.

Hmmm, wonder who has some

https://www.bnnbloomberg.ca/repsol-said-to-look-to-alberta-to-replace-mexican-and-venezuelan-oil-1.1346590#_gus&_gucid=&_gup=Facebook&_gsc=AWtWOVK

#70 Shawn Allen on 11.14.19 at 9:17 am

Blame the advisor?

BC Doc at 63 asked:

Garth— Did you see this upsetting article? It’s a pretty terrible outcome for the client. At some point, will you write a piece about the importance of hiring financial advisers who operate in a fiduciary capacity?

https://www.cbc.ca/news/canada/british-columbia/vancouver-canuck-financial-advisor-lawsuit-1.5357298

***************************
I almost never click links on this blog but did this time.

There is almost no detail in the story. The hockey player who regrets his investments probably has some case. But why rush to judgement here?

let it play out with facts and a judgement before spreading this news?

If this player does not know that every (every!) vendor has his own interest in what he sells you then he also ought to bring his mom along when he buys skates.

#71 Enlightened on 11.14.19 at 9:58 am

I have been pondering the benefit of using my fee based advisor.

I am 56, my wife 53 & 2 kids at home students 16 & 19.
I am retired (at 55) with no new money coming in.
Our Wills and POA have been set up with the help of our advisor and lawyer.

I am currently paying 0.8%; dishing out +1.2K

My advisor handles 90% of our Net Wealth (excluding the home) ; my accounts, my wife’s accounts which includes a spousal loan account and my sons accounts( btw has 60k in NR and TSFA)

We are utilizing all possible legal tax efficiencies and stratagies.

Yes, he has helped get me here to a comfortable financial position but I have also paid for his services to get me here. We have a great rapport both from both a professional and personal standpoint.

So putting aside loyalty and a developed personal connection, what is the benefit of me using my advisor?
14+K a year could pay for an added vacation, a new car lease etc..

Maybe the benefit will become more apparent down the road as we age?

A benefit I do see which is hard to put a price on is if I croak. My family just needs to call the advisor who know where 90% of our wealth is.

Another benefit is how to liquidate the portfolio in the most tax efficient manner (for our yearly expenses), however this is not rocket science and could easily educate my self accordingly.

Any input would be appreciated ..continue or not continue.

#72 The Kremlin does not comment on Cats! on 11.14.19 at 10:05 am

#54

I am glad you were able to conceive and carry your children to term in your 30’s and 40’s. But you are quite wrong.. the data does support what #31 suggests.

After 35 a woman’s chances of conceiving start to decline and after 42 they almost fall off a cliff.

Is this true for all women, obviously no – but for most women – yes.

And quite obviously, until a woman actively tries to get pregnant she has no idea if she can get pregnant without assistance.

#31 is right, if this couple wants to have kids they should find out sooner rather than later if they will need assistance. Age 34 is not too late to start freezing eggs for invitro at a later age.

I have no disagreement with your comments on health if you will acknowledge that all women are different and some , at any age, have trouble with pregnancy and require medical intervention and more rest rather than exercise.

#73 Westcdn on 11.14.19 at 10:08 am

I fully support Jason Kenny to repatriate Alberta’s share of the CPP to a made in Alberta plan. The negotiations will be interesting to watch. Since CPP is a trust separate from the Federal Government, the real issue is the size of the cheque to Alberta. Big egos involved here so I expect negotiations/court actions for many years.

I don’t foresee Alberta becoming part of the US because it would be too big a threat to the treaty rights of Alberta First Nation peoplekind. The other I can’t figure out is what benefit does Alberta get from the NAFTA?

If Alberta does reject Confederation, I only see the O&G industry getting smaller. Americans will still buy Oil Sands production but the rest of Canada will reject it. It could be a good thing as it would lower our carbon footprint. Oil Sand technology is improving so I would expect fewer jobs but enough high skilled jobs for Albertans.

I will not actively support Albertan succession until 2/3’s are in favor but I will look at possibilities/issues and share my observations.

#74 good2all on 11.14.19 at 10:29 am

“Or you can email me for a suggestion or two. No charge” — how nice you are Garth!

#75 Dharma Bum on 11.14.19 at 10:35 am

#60 unconsciously unaware

Avoid using non-registered accounts with Questrade as a beginner investor!
——————————————————————–

I walk by the guy-who-owns-Questrade’s house everyday on my way to yoga.

The guy’s driveway is worth more than my whole house.

I watched the stone masons assemble it by hand for a year.

That’s a lot of commissions.

#76 Figure it Out on 11.14.19 at 10:42 am

“There is almost no detail in the story. The hockey player who regrets his investments probably has some case. But why rush to judgement here?”

There’s enough detail for me. Signed up for insurance requiring premiums/contributions for ten years when he only had a six year contract? “Leverage loans”?

Now the kid’s playing in Sweden and doesn’t have enough money to come up with the annual premium, so he’s had another professional go over the contracts. Oops!

RJ could’ve soaked this kid for plenty and gotten away with it, if he’d structured things so the kid could’ve made those premium payments, and lived comfortably, whether he got another contract or not. But greed put them both at risk.

This is garden variety financial industry malfeasance, not unique at all.

#77 IHCTD9 on 11.14.19 at 10:58 am

#54 Lisa Power on 11.13.19 at 11:16 pm
__

Get out of here – 45!? That one was an accident right?

I have a sis who is 13 years younger than me, Mom was around 40/41 – definitely unplanned! A change in her medication brought back her fertility unexpectedly and whamo!

There are some Women who can get away with it – but treating the idea of having kids at 45 as anything but totally insane is crazy. That’s way too late for a Woman to have kids on purpose – not a smart idea at all. That stuff is for very special cases only.

Another factor is being a grandma/pa parent. I have a BIL/SIL who got pregnant barely out of their teens. They got married and worked out fine – had two more. They will be very young empty nesters, and I kind of envy them for that. My parents did not get my millennial sis out the door for sure until they were in their 70’s.

No thanks!

#78 Sail Away on 11.14.19 at 11:16 am

#72 The Kremlin does not comment on Cats! on 11.14.19 at 10:05 am

And quite obviously, until a woman actively tries to get pregnant she has no idea if she can get pregnant without assistance.

————————————

Oh yes, assistance will definitely be needed.

#79 Figure it Out on 11.14.19 at 11:18 am

“I fully support Jason Kenny to repatriate Alberta’s share of the CPP to a made in Alberta plan. The negotiations will be interesting to watch. Since CPP is a trust separate from the Federal Government, the real issue is the size of the cheque to Alberta.”

Cheque?

I scanned this: https://laws-lois.justice.gc.ca/eng/acts/c-8/index.html

…and saw no provisions for a province getting its residents’ contributions back, but I may have missed it.

There have been discussions in the last few years about whether ETF liquidity is illusory, if the ETF trades regularly and in volume, but its underlying holdings don’t.

[Bank of England Governor Mark] Carney told the Treasury Committee (a cross-party group of U.K. lawmakers) on Wednesday that the rise of funds promising liquidity while holding illiquid underlying assets could create “a potential systemic issue,” and has led to investors viewing them as “not that different from having money in a bank.”

The Canada Pension Plan never promised liquidity, and many of its underlying holdings are FAR less liquid than junk bonds, collateralized loans, or even the matrimonial home in a messy divorce.

Alberta might have to settle for a royalty stream, or an IOU. Food for thought.

#80 Smoking Man on 11.14.19 at 11:52 am

The Snow Flake

It snowed last night…
8:00 am: I made a snowman.

8:10 – A feminist passed by and asked me why I didn’t make a snow woman.

8:15 – So, I made a snow woman.

8:17 – My feminist neighbor complained about the snow woman’s voluptuous chest saying it objectified snow women everywhere.

8:20 – The gay couple living nearby threw a hissy fit and moaned it could have been two snow men instead.

8:22 – The transgender man..women…person asked why I didn’t just make one snow person with detachable parts.

8:25 – The vegans at the end of the lane complained about the carrot nose, as veggies are food and not to decorate snow figures with.

8:28 – I was being called a racist because the snow couple is white.

8:31 – The middle eastern gent across the road demanded the snow woman be covered up .

8:40 – The Police arrived saying someone had been offended.

8:42 – The feminist neighbor complained again that the broomstick of the snow woman needed to be removed because it depicted women in a domestic role.

8:43 – The council equality officer arrived and threatened me with eviction.

8:45 – TV news crew from ABC showed up. I was asked if I know the difference between snowmen and snow-women? I replied “Snowballs” and am now called a sexist.

9:00 – I was on the News as a suspected terrorist, racist, homophobe sensibility offender, bent on stirring up trouble during difficult weather.

9:10 – I was asked if I have any accomplices. My children were taken by social services.

9:29 – Far left protesters offended by everything marched down the street demanding for me to be arrested.

By noon it all melted

Moral:

There is no moral to this story. It is what we have become, all because of snowflakes.

#81 NotLegalAdvice on 11.14.19 at 12:05 pm

#52 Andy’s intelligent young daughter on 11.13.19 at 9:49 pm

I lived in London a couple years ago myself. I also did some traveling and I was only able to do this because I was renting a place.

I’ve been back in the GTA since 2015 now and what a shocker it has been. Our real estate market is just so not affordable anymore.

I’ve been thinking of buying a place for around $900k and currently making a household income of $160k with the 20% ready to give down, but it just doesn’t make any sense. $3200 a month on just property taxes and mortgage payments alone. Not to mention the other expenses that follow.

Renting as Garth has said will be $12,000 cheaper a year, BUT that’s crap. I’ve thought of just moving away, but my job doesn’t allow me to do so.

I compare our RE market to that of the US’ often and $500k out there can get you a McMansion (Chicago, New Jersey, Texas, etc).

#82 IHCTD9 on 11.14.19 at 12:25 pm

#52 Andy’s intelligent young daughter on 11.13.19 at 9:49 pm

I’d be interested to hear the experiences of young families trying to juggle it all in the GTA…
_____

Lots of stories on the net covering that topic – I’m sure you already have a decent idea what you’re getting into.

A couple notes:

1. 150K income is borderline to buy an actual decent house in a kid worthy location in Toronto. So you’ll be looking at a town (don’t go condo). You may wait for prices to go down, or you may settle for a fixer upper I would not do either if I was you.

You’ll be looking at 1.5-2K per month for infant/toddler day care. That’s per head. I don’t think you’ll get much if any CCB at 150K.

Long story short, trying to raise a family in Toronto via normal incomes is like jumping in the ring with Mike Tyson and insulting his mother.

Conversely, you could try a smaller center. Ms. IH and I did this. If you’re both teachers – you’d make the same 150K no matter where you worked.

You’d live a tough life in Toronto on 150K as a SFD owning, kids raising family unit, but you’d live a downright privileged life pretty much anywhere else.

#83 James on 11.14.19 at 12:31 pm

#59 Smoking Man on 11.14.19 at 12:28 am

So there is black young woman. She’s been hanging out at our apartment. Been there all day. Shivering, hungry and cold.
I ask her is everything ok, do you need a blanket, a cup of tee, a bathroom break.
She said I’m fine…. She has an expensive dress and hand bag that makes labourgines look like an old Ford..
Called the cops.
Social workers show up and the cop who turned the heat up in the cruiser.
Social workers showed up and she was taken away in an ambulance…..
Get the keys to my new house tomorrow..
Renting sucks.
But lots of drama ..
__________________________________________
Bay Port Apartments finally got to you hey! Not a smart move though purchasing a home in SoCal right now Old Man. But then again you’ve become a local. Now you can get SSI, and you usually get medical assistance (Medi-Cal) automatically.

#84 PastThePeak on 11.14.19 at 12:32 pm

Well, with the federal government actively trying to kill the Canadian energy sector, at least we can count on the cannabis industry to take over the lead….oops…never mind…

@tcc – why did you choose HDGE as your inverse ETF?

#85 NoName on 11.14.19 at 12:58 pm

#68 crowdedelevatorfartz on 11.14.19 at 8:55 am
“Nothing to see. Nothing to worry about. Its the same old same old….”
Climate Ostrich Apocalypse2019

https://www.reuters.com/article/us-australia-bushfires/lack-of-forecast-rains-to-prolong-australian-bushfires-threat-idUSKBN1XO01C

Here is a map of live wild fires in australia and history for last 3 yrs, to me looks like more surface area was burned last 2 yrs looks 2x bigger that what it will be this year, and untill today noone mention them… Maybe this fire just looks like climate change scarier because its close to population…

https://myfirewatch.landgate.wa.gov.au/

When you look population density and where the “big” fires are and were it become claer that iy got more to do with recent human activity than climate change.

https://edge.alluremedia.com.au/uploads/businessinsider/2017/07/Population-density-australia-June-2016.jpg

If you look at a map that depicts aus area that are most afected by drout. And this year drout didn’t made it on a list…

https://en.wikipedia.org/wiki/2000s_Australian_drought

If you overlap roads and hwy network over live fire even those fires that are deeper in interior you’ll see something funny, more likely human activity, less like climate change. IMHO…

#86 Shawn Allen on 11.14.19 at 1:00 pm

An Alberta CPP plan?

#73 Westcdn on 11.14.19 at 10:08 am said:

I fully support Jason Kenny to repatriate Alberta’s share of the CPP to a made in Alberta plan.

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Alberta’s share of CPP is precisely zero.

Individual Canadians who happen to live at the moment in Alberta have individual CPP entitlements (though no individual pots of CPP money /wealth).

In that sense there is such a thing as each Albertan’s share of the entitlement

No such things as a collective Albertans’ share of the entitlements and certainly not of the wealth pot.

I live in Alberta have for 30 years. But the Alberta government can keep its hands off of my CPP entitlement thank you.

Do you really want your CPP guaranteed by a land-locked Alberta dependent on an industry that may go the way of Cape Breton’s coal or Newfoundland’s cod or seal industry?

I’ll take my chances with Canada’s guarantee.

An Alberta CPP is a dumb idea. If adopted it can start fresh with zero dollars. That is what it is entitled to.

Well maybe to be fair individuals could be allowed to opt in and bring their CPP individually. But what happens if they then move to Ontario?

#87 Renter's Revenge! on 11.14.19 at 1:12 pm

#70 Shawn Allen on 11.14.19 at 9:17 am
BC Doc at 63 asked:
Garth— Did you see this upsetting article?
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I almost never click links on this blog but did this time.
There is almost no detail in the story.

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

What did you expect? The details don’t matter. The medium is the message.

The CBC pumps out articles like that on a daily basis promoting the victim mentality in Canada and the belief that “the government should do something about that”.

#88 Jesse on 11.14.19 at 1:30 pm

My advice is to invest in either MAW104, VGRO/VBAL or XAW for all in one solutions.

If you prefer using US-listed ETF’s (which have much higher volume and lower MER), consider using Norbert’s gambit to change your CAD into USD, and buy: VTI, VXUS and BND.

Keep it simple.

#89 Sail away on 11.14.19 at 1:38 pm

Tax loss season approaches! Almost time to fill my pockets with the scattered wreckage of others’ dreams. Can’t wait. Early January is my Christmas.

#90 EB on 11.14.19 at 1:42 pm

>Pre-fossil-fuel-usage sea level rise of about 100 meters theorized.

It’s hardly theoretical. Bewteen ca. 20,000 years ago and ca. 5,000 years ago the sea level rose some 120 meters (360 feet) as the ice age ended and the glaciers melted. That’s about 1 inch per year for 15,000 years. The most pessimistic projections from climate change predict a global rise of 50 cm by 2100, which averages to one quarter of an inch per year. An annoyance for coastal peoples certainly, but the Earth itself has seen much more extreme. I worry that people are so determined to make a change that they’re playing very fast and loose with the facts in order to create a sense of urgency and make things happen. But it leaves people with an exaggerated sense of impending doom, which then creates cynicism when once again the world fails to end.

#91 EB on 11.14.19 at 1:52 pm

I should know better by now than to do the math in my head. 120m/15,000 years = 0.8cm/year, which still compares favorably with 50cm/80yrs = 0.63 cm/yr.

#92 Sold Out on 11.14.19 at 2:03 pm

Perhaps a partial solution to the heartbreak of the mis-matched lifespans of humans and dogs is on the horizon. Or maybe it just leads to fewer canine adoptions. Despite the emotional devastation, we’ve always consoled ourselves that the act of humanely releasing a beloved pet allows us to adopt another, and give it the best life possible.

https://www.cbc.ca/news/health/dogs-aging-study-1.5359502

#93 Wait There on 11.14.19 at 2:36 pm

If I understand the stats that have been prodded around.

Alberta has the highest income per capita
https://www.conferenceboard.ca/hcp/provincial/economy/income-per-capita.aspx?AspxAutoDetectCookieSupport=1

OK, the top 20% of earners pays what 70% of the cost of running the country.

OK

That means that Alberta likely contributes a disproportionate share of the revenues required to run the country.

You can see why they are peeved.

Government policy should be accommodating to Alberta and Saskatchewan.

#94 SoggyShorts on 11.14.19 at 3:37 pm

#71 Enlightened on 11.14.19 at 9:58 am
I totally understand where you are coming from. I turn 40 this year and simply couldn’t justify paying ~15k each year either.
0.8-1% is probably worth it in the beginning to get everything set up and to become educated (especially if you don’t have time)
After that though? In early retirement it just doesn’t work. Planning to live off about 4% or a portfolio would mean giving 25% of you income to an advisor. A reasonably long life would mean paying them a million dollars.

Using “a penny saved is a penny earned” means that even if it takes you a hundred hours to educate yourself and a couple hours a year to rebalance, you are “earning” thousandsper hour doing so.

I really wish that advisors had a different fee structure. My finances are simple enough that a pro should be able to do everything in 10- 20h per year, and I’d gladly pay $150-200/h for that, but not over $1,000/h.

#95 SoggyShorts on 11.14.19 at 3:46 pm

#60 unconciously unaware on 11.14.19 at 12:51 am

Avoid using non-registered accounts with Questrade as a beginner investor!

…with all my personal research into investing and the different platforms, I don’t remember seeing this advice anywhere. Questrade doesn’t provide a gain/loss summary nor keep track of the Adjusted Cost Base (ACB) of the different investments (although they give you the data to calculate it on your own). Further, only the proceeds of disposition are sent to CRA (T5008). Avoid a big tax bill (or an accounting bill/frustrated accountant) by using a registered account!

Any other platforms like this? Any services out there that offer ACB calculations for questrade day-traders in non-registered accounts? I don’t think this is a service that accountants typically do.
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First of all, your “beginner investor” who suffers from transaction fees due to being “a day trader” shouldn’t even exist. WTF are they doing day trading as a beginner?!

Secondly my cost base is updated with every purchase/sale that I make through questrade and it tracks perfectly(tested against my own spreadsheets and records)

And finally, it absolutely gives you a gain/loss summary.

Have you actually used questrade or even watched a YouTube of someone else using it?

#96 NoName on 11.14.19 at 3:47 pm

Niagara falls in danger over climate change in 12 yrs, it will be only rapid, but most likely dray lake bed.

https://www.ijc.org/sites/default/files/current-view-crest-niagara-falls.jpg

#97 Nonplused on 11.14.19 at 8:51 pm

#54 Lisa Power

You got lucky. Don’t confuse that with being smart.