Smells like teen spirit

DOUG  By Guest Blogger Doug Rowat

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Thank god my kids aren’t yet teenagers; however, my seven-year-old daughter is already asking for a cellphone, so I’m getting a sense of what’s in store for me. I’m probably doomed.

So, for those of you who do have teenagers I won’t presume to offer advice regarding how to talk to them; however, eventually all parents will have to have ‘the money talk’. And here I might be of service. Below I offer my best advice.

Explain to your teenager where money is really concentrated. Teens frame the world around their own interests and through their own social-media experiences. Therefore, they often focus on celebrities and music. Teenagers think that wealthy means Taylor Swift, or Jay-Z and Beyoncé. Point out that the real wealth is held in the financial industry. The below chart shows how much top-celebrity-earner Taylor Swift made in 2016 versus what some of the most successful hedge fund managers made. Needless to say, there’s no comparison. This doesn’t mean that you should point them towards a future in finance. Far from it. There are already too many of us in this business. The world needs more artists, musicians and poets. However, it’s still important that they understand where the real wealth lies.

Shake it off: Taylor Swift earnings vs hedge fund manager compensation

Source: MarketWatch, 2016 data

Teach them that markets sometimes go down. We have many clients who are inexperienced investors, which, of course, is fine—it’s our responsibility to educate them about market volatility. However, ideally, clients have already learned, long ago, that volatility’s a normal, in fact, expected, part of capital-market investing. Bad stretches occur every year, but the vast majority of the time markets end up in the black. Educate your teens that negative intra-year periods occur regularly, but that they shouldn’t become unsettled by this temporary weakness. The chart below from JP Morgan is a great visual to show young investors. Intra-year market drops for the S&P 500, the world’s largest equity benchmark, are a constant reality and sometimes they can be severe, but seldom do they result in the full calendar-year returns also being negative. Stay invested. Markets need to take breathers but virtually always move higher in the long run.

S&P 500 intra-year declines vs calendar year returns: despite average intra-year drops of 13.9%, annual returns have been positive in 29 of 39 years.

Source: JP Morgan

Questions on first investments? Suggest health care. When you’re a teenager you assume that you’ll live forever and you surround yourself with other young people, so it’s easy to lose sight of the fact that the world is, relative to a teen, a much older place and rapidly getting more so. If teenagers think about investing at all, it’s usually in the context of what they’re familiar with. For example, “I use Uber, so that must be a good investment.” (You might explain to them that Uber has, in fact, been a terrible investment.) Encourage them instead to think long term and to broaden their lens. As the chart below shows, the global aging trend has dramatically accelerated in recent years and will continue to do so. Health care is critically important to an ageing population. It’s no coincidence that over the past 10 years the S&P 500 Health Care Sector Index has returned 285% on a cumulative total-return basis, easily outstripping the still-impressive 248% gain of the S&P 500. More so than us parents, your teenager will fully benefit from the upcoming, multi-decade shift in global demographics. Over time, your teenager can (and should) continue to add more diversification, but health care is a reasonable first investment and it creates more interesting talking points than a plain-vanilla balanced fund.

Global age trend: health care makes for a reasonable first investment

Source: United Nations

Have them open a TFSA. You’re allowed to open and contribute to a TFSA once you turn 18. You don’t even need a job (earned income) to start contributing to one. Though the contributions made to a TFSA are not tax-deductible, the investment gains within a TFSA are not subject to capital-gains taxes. Tax deductibility isn’t a big priority for most teenagers anyways as they likely aren’t earning much and are probably in the lowest tax bracket. However, the tax-free growth is an important long-term advantage especially when you consider my next point below. The cumulative TFSA contribution limit currently sits at a meaningful $69,500.

Encourage them to start investing early. As my partner Ryan perfectly illustrated last week, through the power of compounding growth, if your teenager starts investing early and saves consistently they’ll have exponentially more money in retirement than their less-disciplined peers (see chart below). Now, I recognize that these initial savings assumptions are aggressive for a teenager, but the overall point is still clear: start early.

Investing early can have a dramatic impact on eventual retirement savings

Source: Turner Investments; Assumptions: saving $12,000/year at a 6% CAGR to age 65. X-axis represents years of investing.

You can, however, tell them that they don’t necessarily have to start this early:

And, incidentally, why this album matters more than any other will be my daughter’s next, non-financial, lesson.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

 

110 comments ↓

#1 Steve French on 12.14.19 at 11:17 am

Is this a “first” which I see before me,
The keyboard toward my hand? Come, let me clutch thee.

I have thee not, and yet I see thee still.
Art thou not, fatal vision, sensible

To feeling as to sight? or art thou but
A dagger of the mind, a false creation,
Proceeding from the Smoking Man-oppressed brain?

I see thee yet, in form as palpable
As this which now I draw…..

#2 Damifino on 12.14.19 at 11:30 am

Great post, Doug

Another thing a parent might tell their kids is to avoid the so called “music industry” altogether. This quote from Hunter S Thompson sums it up beautifully…

“The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There’s also a negative side.”

#3 Sam on 12.14.19 at 11:38 am

hedge fund managers? horrible, shocking use of by a person IN THE financial industry

OMG.

data shows hedge fund managers perform WORSE than mutual fund/or tactical etf portfolio managers. This is fact

go ahead and roll the dice on a hedge fund manager..

#4 CD on 12.14.19 at 11:47 am

Interesting article, Doug. Hopefully you aren’t “doomed” after all…

“The below chart shows how much top-celebrity-earner Taylor Swift made in 2016 versus what some of the most successful hedge fund managers made.”

“It’s no coincidence that over the past 10 years the S&P 500 Health Care Sector Index has returned 285% on a cumulative total-return basis, easily outstripping the still-impressive 248% gain of the S&P 500.”

“And, incidentally, why this album matters more than any other will be my daughter’s next, non-financial, lesson.”

“I like it, I’m not gonna crack”

#5 Shawn Allen on 12.14.19 at 11:49 am

Tortured Tax Confession Award

#92 Clayton604 on 12.13.19 at 8:54 pm …

Should win an award for how to torture the numbers to get the answer desired. In this case a claimed 169% tax rate on a $150,000 vehicle.

Here is what he said:

Don’t forget.. BC already has a 20% provincial sales tax on vehicles that cost in excess of $150K.

How Much Tax does this add up to in total.

$150,000 Car
30,000 20% PST
7,500 5% GST
15,000 10% Federal Luxury FU tax

$202,500 TOTAL (52,500 in taxes) but wait.. you pay for that with after tax dollars.. so

$403,386 Income
(200,886) Income tax @ 49.8%
$202,500 Net

So on our $150K car.. you pay $52,500 in sales taxes and 200,886 in income taxes for a grand total of $253,386 in total taxes.. which is 169% tax load on your $150K vehicle… but you know.. its just a little bit more more they say..

*******************************
He cleverly pretends that income tax should be included as tax on the vehicle. Sounds logical since you need to earn income and be taxed on it in order to buy the vehicle.

But of course that income tax is payable whether you buy the vehicle or not. That is tax on income. Not tax on the vehicle.

There is a frequent complaint that things are paid for in “after tax” dollars. Yes, what other kind of dollars do people legally have?

He also assumed the high marginal tax rate as opposed to average. I guess people will work a little extra to earn an extra $403,386 and be taxed at 49.8%?

He also assumed the new federal luxury tax would be on top a B.C. provincial luxury tax.

The point being. Well done, the numbers were well tortured to reveal an enormously high tax rate.

#6 Bytor the Snow Dog on 12.14.19 at 12:01 pm

#106 Shawn Allen on 12.13.19 at 10:11 pm sez:

“Robert Ash at 93 never met a block of text yet that would not fit in one paragraph.”
—————————————————–
Who needs paragraphs when you can use a million commas as separators!?

#7 Bytor the Snow Dog on 12.14.19 at 12:03 pm

Good post Doug. I just want to add that my kids got cell phones when they could afford to buy them themselves… when they both got part time jobs after the age of 16.

#8 Shawn Allen on 12.14.19 at 12:07 pm

Intra-Year versus Calendar Year declines / gains

Nice chart! Sobering in a way. I’d prefer plain language and call it within-year declines.

For a second, I was surprised that EVERY year features within year declines.

But the only way to avoid any within year declines would be if not a single day closed lower than the previous day.

Looks like 2017 tied for one of the two lowest within year declines since 1980 (forty years!). The market must have marched higher almost every day. Imagine at no date during 2017 was the level more than 3% lower than the previous high for the year!

Wait here, while I go check a chart for 2017. …. Okay, right, indeed 2017 was almost a straight slope up from January 1 to December 31.

But it is the declines that scare people. Lots of within year declines of 20% or more. It is scary for people.

Again, great chart!

#9 SoggyShorts on 12.14.19 at 12:17 pm

I cant recall who said it, but it went something like:
“30m a year?! Wow, Shaq is wealthy!”
-“No, Shaq is rich, the guy who write’s Shaq’s check is wealthy.”

As for starting your kids on maxing their TFSA: all it takes is one shift per week at minimum wage to have over a million in retirement savings. Tie in a no-brainer like VGRO and they’re set.

#10 SoggyShorts on 12.14.19 at 12:24 pm

#97 yvr_lurker on 12.13.19 at 9:04 pm
Let’s all just wait and see and not get our knickers in a twist over nothing we can do about it anyway
****************
Didn’t the T2 gang back off a little last time because so many got their knickers in a twist?
————————————
#88 Marcus Aurelius on 12.13.19 at 8:36 pm
(1) possible removal of the CG exemption on your house (primary residence); and
(2) increase (back again?) on the CG inclusion rate.

The first is least likely: even for taciturn Canadians, that would lead to violence in the streets
****************************
It’s all about how they sell it.
To sell CG tax on houses it’s posed as a speculator tax so it sounds like someone else’s problem. Also, it would probably be a scale so that there is still no tax after x years of owning.
For increasing CG on investments, just avoid mentioning that it totally screws pension funds and retirees and focus on the 0.001% who have so much in(unrealized and therefore actually untaxable) capital gains as if they matter.
———————————————————–
#120 Smoking Man on 12.14.19 at 12:30 am
When they take your guns away…
History says you are dommed. Welcome to communist manifesto.
Canada is doomed…Run…

*************************
Just like in Austrailia? Oh wait….

#11 SoggyShorts on 12.14.19 at 12:34 pm

#5 Shawn Allen on 12.14.19 at 11:49 am
Tortured Tax Confession Award
*******************
Yeah those numbers are massaged, but you could look at it this way:

If I decide to work extra so that I can buy an RV, and that requires 400K of income to buy a 150K one, then I would expect zero potholes in the road on my way to the doctor who has a very short wait time after reading about how the budget is balanced etc.

Basically, if it feels like the government is taking ever-larger bites we start to expect better results and when that inevitably doesn’t happen, we either gripe about the bite, the incompetence, or both.

#12 Linda on 12.14.19 at 12:49 pm

Excellent post, though most teenagers would likely roll their eyes because talking about money is like, boring. And old folk stuff, because, like, they are going to get all their parents stuff when they die anyway. Which will be real soon because dude, the parents are OLD.

However, for sure get them to open, fill & explain why taking out any cash from the TFSA is a very bad idea. Also explain why assets within the TFSA should be growth related, as in ETF’s with a low MER & steady returns. As one of the few with a employer DB pension plan (though I fully expect it will eventually be converted to a DC plan if it is kept at all) I would bore the socks off the kids with the absolute necessity of having a TFSA with an RRSP as the backup plan if they ever want to retire.

#13 Kathy on 12.14.19 at 12:49 pm

I implore you to shut down this disinformation website at once!

You are scaring away investors by spreading fake news! Toronto is a growing and successful city that is the fastest growing in population for the entire world!

Now, if you love your life, shut down this website at once Doug Rowat!

#14 TM on 12.14.19 at 12:54 pm

Young people need to take care, when investing, if they are planning on going to post-secondary and applying for OSAP. Savings, Investments and TFSA’s need to be disclosed-which can in turn seriously affect the amount of OSAP funding. From what I am told, CRA and OSAP are constantly auditing and confirming information, so it would not bode well not to disclose. I believe that RRSPs are not classified as investments that need to be disclosed.

#15 Flop... on 12.14.19 at 1:07 pm

Robax, something different, good enough for me to trot this golden oldie out.

This howmuch article has more cobwebs than my “How to succeed in Canada.” manual that I never finished.

If you click on the link you will see why all the old bands are still touring.

That’s where the money is nowadays, not record sales.

Thor, take cover, Adele Alert…

M45BC

“Sell, Stream, Syndicate or Sing: How the World’s Top Pop Stars Make Their Money.

Pop music these days is a hybrid beast, and this Top 20 proves it – on two counts.

Exhibit A: take a look at those oldies rubbing shoulders with all the young dudes. If it isn’t literally true that half the people on this list weren’t even born when the other half were already performing, it’s close enough. It’s the paradox of youth culture entering its dotage, in full evidence.

And Exhibit B: the fractured sources of stardom. When the Stones were as young as Taylor Swift is now, record sales were the yardstick of fame. The internet has disrupted pop music’s traditional business model. Chart success has become just one of several measures of success, and a negligible one at that.

This Billboard overview of 2015’s highest-earning performers in pop music shows that touring is by far the biggest source of income – with only two exceptions.

The year’s biggest star in terms of earnings is Taylor Swift. In 2014, she was only 15th on the Billboard list, with a combined income of a mere $13.6 million. Last year, she increased her income more than five-fold, to $73.5 million. More than 80% of that total came from her 1989 World Tour. The exceptional nature of Swift’s victory can also be expressed in money: $23.5 million – the amount by which she outperformed One Direction, the #1 for 2014.

Another measure is the distance to the #2 for 2015, Kenny Chesney. The country singer earned a total of $39.8 million, just over half of Taylor’s total revenue. His big money-spinner was the Big Revival tour, making him €38.1 million.

Despite their current combined age of 289 years, the Rolling Stones came close last year to equalling that total ($39.6 million), and that touring prowess ($37.3 million).

Like Chesney and Jagger & Co., Billy Joel earned more than 95% of his 2015 earnings from performing – in his case, no more than 29 shows. Those must have been eye-wateringly expensive tickets.

One Direction, dropped to 5th place ($24.2 million), are the first performers after Swift to earn a decent buck from their actual sales. Their music sold for $3.1 million in 2015 (digital plus physical sales), more than double the amount for the Rolling Stones. They and Swift are part of the youth brigade, the three performers in between are the old guard. That pattern will repeat throughout the list.

Take the Grateful Dead, at #6: sales and streaming revenue doesn’t even add up to $1 million, while touring netted the Sixties relics a total of $22.5 million.

The much younger Luke Bryan, at #7 with $23.1 million in total revenue, earned $4 million in sales alone, while U2, at #8 with $21.8 million, barely scraped together $465,000 in worldwide sales (again, that’s physical and digital) last year. Even in publishing revenue (copyright earnings and such), U2 has to bow before Bryan. Only in live performance do they beat the #6. ($20.6 million vs. $17.9 million).

Adele, at #9, is an exceptional performer. By not performing in 2015, mostly. She earned her money the old-fashioned way: by selling music ($16.3 million out of $20.5 million).

Rounding out the Top 10 are Maroon 5, who beat everyone except One Direction and Ed Sheeran when it comes to streaming. But the band’s 1.3 billion streams brought in under $800,000 – proof of the common complaint that streaming pays musicians peanuts, and very few of them too.

The bottom half of the Top 20 is loaded with 6 of the list’s ten ‘heritage acts’. Some have more traditional fans than others: Fleetwood Mac sold three times more physical than digital music, while Madonna, the Dave Matthews Band and Elton John were among the oldies who sold more digital than physical copies.

Ed Sheeran’s revenue stream is atypical, in that he earned $2.5 million of his $11.6 million total from publishing royalties. Which is what happens when you write all the songs on your hit record. Few others can say something similar – to be exact: Taylor Swift, Maroon 5 and Adele”

https://howmuch.net/articles/highest-paid-musicians-2015

#16 HH on 12.14.19 at 1:27 pm

When it comes to the big trinity of personal finance, I think most authors and bloggers over-emphasize the less important two:
# 2: Saving Money
# 3: Investing Money

They don’t talk enough about #1: Making Money.

It seems obvious that you can’t save and invest when you are broke and underemployed. Yet, I find most of the personal finance space always concentrates on the last two to the detriment of #1.

So if you are going to lecture your teenagers, for dog’s sake, first and foremost get them thinking about where money comes from in the first place and how they plan to earn it in this life.

Get them pondering the most important choice they’ll make in life: i.e. the choice of profession / trade / career.

(To be realistic, very few people will become CEOs or hedge fund managers. Just about as likely as making it to the ranks of Taylor Swifts and Jay Z’s.)

Get them to start thinking about making a practical and pragmatic choice. i.e. Something that will lead to decent and stable (though perhaps not immediately large) earnings and good employability/mobility and consequent independence early on in life. Something that has a good ratio of education/training costs to future earnings and employment prospects.

Get them to understand that the time to start seriously thinking about it all is right effing now, in high school. Not in their twenties when they are working Starbucks after having thoughtlessly stumbled through an entirely decorative degree.

#17 Phylis on 12.14.19 at 1:48 pm

Trying to live.
Running the course.
There are so many ahead of me.
They must be cheating.
Whoa is me.
Whoa is me.
Don’t call me a snowflake, I’ve already melted.

Author unknown.

#18 will on 12.14.19 at 1:48 pm

So if a teenager turns 18 tomorrow they can deposit $69,500? Surely that’s not the case but it looks like that’s what you are saying. Please confirm.

Not confirmed. – Garth

#19 Stan Brooks on 12.14.19 at 1:48 pm

Any investment in any securities in any plan will be subject to some form of confiscation through some form of repressive taxation.

Run with YOUR MONEY while you can. Or wait for the french villa guy’s treatment, I am sure he will be ‘fair’ to you.

Look for return of capital, not return on capital.

Being smart and responsible in a mental institution/mob rules is a losing proposition.

None of these hedge fund managers /billionaires followed the sheeple’s ‘responsible investor/ do the right thing’ strategy.

#20 Sold Out on 12.14.19 at 1:53 pm

#16 HH

Hear, hear.

Excellent point; too many parents are clueless about helping their progeny navigate the new education/employment paradigm.

Having been the offspring of clueless parents, I managed to make out alright by catching the tale of the Boomer economy. If I was born in 1985 instead of 1965, I’d have been economic road-kill.

What kind of dipshite leaves these decisions, about a future that your average 16-year-old can’t possibly visualize, up to a child?

#21 Sold Out on 12.14.19 at 2:08 pm

#20

“The Tale of the Boomer Economy”

Ha! That’s going to be the title of my first anthology of bed-time stories for Gen-Z’s unfortunate little sprogs.

#22 bdwy on 12.14.19 at 2:26 pm

#7 Bytor the Snow Dog on 12.14.19 at 12:03 pm
Good post Doug. I just want to add that my kids got cell phones when they could afford to buy them themselves… when they both got part time jobs after the age of 16.

——————–
tech is more important than ever for kids.

7 is old enough to start!
20-30 bucks will get an older andriod, wifi is free.

once they are walking to school/friends alone (very soon) get a tiny bit of data so you can stay in touch.

a full on plan/newer phone, sure once the kid can contribute.

#23 FreeBird on 12.14.19 at 2:31 pm

Yes, financial literacy is almost nil and awareness of why it’s important and why not to just rely on govt handouts is maybe worse. You’re up against corp MSM and 90% of social media. A for effort though.

Friends give their 5 yo (going on 25) son $5 ea week (for his age) and teach him to divide it:

$2 for spending
$2 for saving (good old piggy bank)
$1 for donating

Saving helping learn delayed gratification. They’re also teaching him if he saves more then spends how much it grows. He learns to give back with donation bank. He’s only five so it’s all at his level and but so far he’s a saver with the odd ‘spree’ LOL (which they support to keep it fun and balanced). They also pick small items worth ~$15 and offer to match/double his savings to buy it when he has enough. Again, he’s young but seems to like it. Donations go to places he likes (animal shelter etc.) They also have him take some toys and clothes at this time to school or St Vincent’s etc for kids who need them (make room for new). He goes with them and seems to like it. Small gifts like tooth fairy is divided same way but bigger ones from family (esp gran and gramps) go to the bank. He has little things on a list like put toys away, help mom/dad fold (like socks) etc he checks off. All of this isn’t new and maybe not for all kids but it’s can be easy fun to try. For the cynics it doesn’t teach about inflation and other real life money lessons but he’s five and they can wait. Good post. Good timing.

#24 Shawn Allen on 12.14.19 at 2:38 pm

A good career choice?

When I was ten year old in 1970 (nearly 50 years ago) it was said the Plumbers make great money. It’s still the case.

Doctors and lawyers and chartered accountants were all great career choices. Top of the heap in that order. That has not changed.

So some things at least are predictable.

Trades that require hands on skill as in home renovations are unlikely to be automated. Will remain good choices.

The entire medical field will remain a great choice.

Lawyers and accountants face some automation but likely remain good choices.

As for engineering, there has been a glut of them (us) all my adult life so I don’t know about that one. The top of the class will do well. The bottom half, not so much.

#25 Remembrancer on 12.14.19 at 2:42 pm

#18 will on 12.14.19 at 1:48 pm
So if a teenager turns 18 tomorrow they can deposit $69,500? Surely that’s not the case but it looks like that’s what you are saying.
—————————————————-
Here…

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html

To wit…
You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you will be able to contribute up to the full TFSA dollar limit for that year.

#26 FreeBird on 12.14.19 at 2:43 pm

#7 Bytor the Snow Dog
“…my kids got cell phones when they could afford to buy them themselves… when they both got part time jobs after the age of 16.”
———————
I know many parents who are/were the same and don’t like the toy phones and tablets or the newest clothing being promo’d/worn by popular celebs (who prob get paid to wear/use the items). But for those with kids walking to school/bus pick up on their own I do get the why parents feel better with them having one. I did walk to school for years (no not barefoot through 6 ft of snow yadda yadda like my dad haha) before cell phones existed and survived fine but that was then. My friend’s 12 yo daughter walks to school alone most days as mom works two jobs so I get it. But she has strict rules around it. Not a black and white subject these days. I see both sides.

#27 Blackdog on 12.14.19 at 3:02 pm

@TM #14

Ford gutted OSAP, so no worries.

#28 TalkingPie on 12.14.19 at 3:10 pm

I’m convinced that a person’s parents’ relationship with money is a huge factor in their own financial success.

Yes, you get the whole “privilege” angle, but that’s not what I’m talking about. If kids see their parents spending wastefully, not saving, and going into debt, they will think it’s normal behaviour and emulate it. On the other hand, if they see parents who are financially responsible, they’re far more likely to be responsible themselves.

Teach your kids to be reasonable with money early, and they’ll thank you later in life. I definitely am grateful to mine, having avoided debt and been able to pay for the things most important to me in adult life despite mediocre earnings, thanks to the lessons my parents taught me early on. And it should be obvious but experience has shown me that it’s not: they included the importance of choosing a career that paid a livable wage, not just “pursuing our passions.”

The added bonus: by not spending all their money doting on their kids in our childhood, it looks like there may well be an inheritance coming our way someday – one that we won’t necessarily need, because we learned to be financially self-sufficient.

#29 Westcdn on 12.14.19 at 3:33 pm

I had daughters as a father. I didn’t know what to do other than spend time on the ground with them. They grew up to be spirited and I have to watch my P & Q’s around them. They didn’t develop my love for numbers or chess. Yet, they are tough and have their own vision.

#30 HH on 12.14.19 at 3:37 pm

And while on same topic I’d suggest the following polling of the blog dogs. Maybe we could do it ad hoc ourselves. Maybe Garth could run a separate survey post some day.

Clearly, the comment section is a collection of grumpy, but fairly successful old-timers and middle-agers. You know, they must have done well for themselves in life. Now they all sit leisurely retired or semi-retired around this electronic porch and grumble back and forth all day about the times, while slapping the occasional youngsters and socialists who wonder in to gainsay them.

So why don’t we tap the collective accumulated wisdom and get them to share some secrets to success?

Hey, I am only being like 5-10% sarcastic and over 90% serious here. Come on.

And I don’t mean some outlandish “get-rich-quick” ideas or generic stuff about “not being a sheep and thinking like a winner” a la Smoking Man.

No, no. Advice I am thinking of is more down-to-earth.

Simply put, when it comes to careers, job markets, business opportunities, there are often little or not-so-little niches and trends, that are obvious to those who are in them, but get overlooked by most of the population.

So tell us, oh blog dogs, what in your own lives was an unexpectedly good way to turn a buck, which is not that popular or part of conventional wisdom? Something now obvious to you, but what most of population would not think of? Can be a skill, a job, a career, a business opportunity, an investment or even a side-hustle…

For example, the oft-repeated observation on this blog on how trades people can make pretty good incomes while living in low cost areas outside big metros. Wish somebody told me that when I was 16. Not obvious to a teenager or many adults at all, yet a decent life/career strategy for many.

Or past decade or two in my own line of work (IT, financial sector). Big revelation for me was how well self-employed independent contractors and consultants made out. Conventional wisdom (and my own upbringing) is to value “stable”, “steady” full time permanent jobs. Contracting is looked down on by most folks as insecure and shiftless. Career is typically thought of as steady climbing of corporate ladder by a loyal full time corporate samurai. But as I found out, there were great opportunities (i.e. annual earnings 2-3X of salaries for full-timers doing same work) and not as “insecure” or “unstable” a business as most people think…

Or something that stories from a relative of mine in healthcare made me realize: how mental illness and care of “special needs” people are a pretty big industry. Most students of nursing and other healthcare disciplines don’t think of it as one of top choices. Perhaps it takes a special personality to be a psych nurse: most folks, even most healthcare workers find the sight of mental illness freaks them out. But if you have what it takes to face that daily, it’s not a bad line of work with good opportunities and less competition. Apparently much less physically (though perhaps not mentally) challenging than regular medical nursing.

***

So come one, please share your experiences on less known and unexpected opportunities and niches.

“Unexpected” can be understood broadly.

What’s totally obvious to you today, may be new and extremely useful information to a younger person starting out.

#31 Doug Rowat on 12.14.19 at 3:44 pm

#8 Shawn Allen on 12.14.19 at 12:07 pm

Intra-Year versus Calendar Year declines / gains

Looks like 2017 tied for one of the two lowest within year declines since 1980 (forty years!). The market must have marched higher almost every day. Imagine at no date during 2017 was the level more than 3% lower than the previous high for the year!

Wait here, while I go check a chart for 2017. …. Okay, right, indeed 2017 was almost a straight slope up from January 1 to December 31.

70 record-high levels for the DJIA that year as one example of the positive upside momentum.

–Doug

#32 Grunt on 12.14.19 at 3:55 pm

Dear Doug ;

all very good points here (as usual) but if you can’t convince many adults what chance do you have with most teens? Be realistic. Are you going to be Jesus Christ on a bike and show them the light?

Young people need the freedom to be self-determining. No communist or fascist dictatorships please. I say this because I remember young Spanish students being beaten by the Guardia. Because they wanted to grow their hair over the collar or wear tight-fitt jeans or mini skirts or Listen to Rock & Roll. I don’t want single out Spain the DDR Stasi beat Punk Rockers.

Just be Bay Street Doug. Smug & smart. Don’t blow the fees on a Lambo. That would be soo adolescent…

#33 Stan Brooks on 12.14.19 at 3:55 pm

#24 Shawn Allen on 12.14.19 at 2:38 pm

Doctors and lawyers and chartered accountants were all great career choices. Top of the heap in that order. That has not changed.

I am sure these will be very happy to pay 54 % marginal income tax rates (40 % + effective average rate) /soon to be increased,
+ GST+HST +
+ ever increasing property taxes
+ ever increasing carbon taxes/these are just starting…
+ ever increasing fees

for the privilege to be overworked serving the herd of stupid debt junkies

and for the privilege to:
– pay 20-30 net yearly incomes for a substandard shack
– pay 8-10 bucks for a kilo of apples that cost 1 Euro in Europe
– pay exuberant food prices, high grade restaurant rates + taxes + gratitude for a burger or court food quality food.
– pay a lot for substandard services provided by shameless oligopolies.
– enjoy the ‘fantastic’ weather and traffic in cities with crumbling infrastructure.
– never to retire/stop working
– see their kids fighting for low paid, low quality jobs in an extraction economy that lacks any competitiveness and productivity.

Everyone from the professions you are listing that I am talking with is scaling down operations and refusing to work/literally for free.

This is what socialism is: people refusing to work only to see the fruit of their labour stolen.

Besides the stick people need carrots, at least here and their.

#34 Boris Corbyn on 12.14.19 at 3:59 pm

The worry is, in the near future will the government tax the people who plan for their retirement?

(of course some things, health, divorce etc can throw you a curve ball, not judging)

At one point does it stops making sense trying to get ahead?

“The trouble with Socialism is that eventually you run out of other people’s money.” Margaret Thatcher

“And the budget will euuuh balance it’s ahem self” T2

Me think Atlas Shrugs or moves abroad. Plan accordingly if you can

#35 Casey on 12.14.19 at 4:00 pm

Taylor Swift earnings vs hedge fund manager.
But who can sing better?
Garth say Adele.

Why not tell the kids to get some education, best investment.

#36 Sail Away on 12.14.19 at 4:04 pm

#23 FreeBird on 12.14.19 at 2:31 pm

Friends give their 5 yo (going on 25) son $5 ea week (for his age) and teach him to divide it:

$2 for spending
$2 for saving (good old piggy bank)
$1 for donating.

They’re also teaching him if he saves more then spends how much it grows. He learns to give back with donation bank. He’s only five so it’s all at his level and but so far he’s a saver with the odd ‘spree’ LOL (which they support to keep it fun and balanced). They also pick small items worth ~$15 and offer to match/double his savings to buy it when he has enough. Again, he’s young but seems to like it. Donations go to places he likes (animal shelter etc.) They also have him take some toys and clothes at this time to school or St Vincent’s etc for kids who need them (make room for new). He goes with them and seems to like it. Small gifts like tooth fairy is divided same way but bigger ones from family (esp gran and gramps) go to the bank. He has little things on a list like put toys away, help mom/dad fold (like socks) etc he checks off.

————————————

Sounds like they are raising a fine little accountant.

Our kids could spend their money as they chose. My son once chose to buy a silly little plastic Pikachu that cost $20(!). It didn’t seem like he was playing with it much, so after a few weeks I asked him if he would still choose to spend that much money on the plastic toy. He thought about it for a minute, then said, “No… I already have one.”

#37 Doug Rowat on 12.14.19 at 4:07 pm

#15 Flop… on 12.14.19 at 1:07 pm

Robax, something different, good enough for me to trot this golden oldie out.

If you click on the link you will see why all the old bands are still touring.

As bands age there must arise serious questions regarding whether they can still profitably monetize ‘the tour’. Could the Stones tour without Keith Richards or U2 without The Edge? Probably. But not without Mick or Bono, I imagine.

However, the Eagles have figured that they can do it without Glenn Frey and I’ve read that Journey actually only has one original band member, so what do I know.

–Doug

#38 joblo on 12.14.19 at 4:22 pm

Meh, what 18 year old has 12K a year to invest?
Lets say they do, in 10 years what that on the chart 180K?
They been schooled world ends in 2030, what good is 180K they say?
Cause Greta and Alexandria Ocasio Cortez, Elizabeth May “the Scientists” and my teachers are wrong?
That could be a problem.

#39 Yabba dabba doo on 12.14.19 at 4:30 pm

Looks like Mexico is not happy with NAFTA 2.

The US made addendums that were not part of a signed agreement.

Sort of what China did to the US.

Trumps Art of the Non Deal.

#40 Shawn Allen on 12.14.19 at 4:30 pm

Things that don’t change

#33 Stan Brooks on 12.14.19 at 3:55 pm responded to me:
#24 Shawn Allen on 12.14.19 at 2:38 pm

Doctors and lawyers and chartered accountants were all great career choices. Top of the heap in that order. That has not changed.

I am sure these will be very happy to pay 54 % marginal income tax rates…

*************************
Well, another thing that has not changed. Winners win and losers lose. That is, those who win, tend to keep winning and those who lose (especially when due to their own bad choices) tend to keep losing – and blaming others or the system.

Taxes are high. But I have always said that one thing worse than having to pay a big tax bill is not having to (because of low income).

I am not sure what your griping has to do with the topic of career choice. Are you trying to address the topic of telling kids to move out of Canada?

#41 Karlhungus on 12.14.19 at 4:45 pm

That is one overrated album

#42 [email protected] on 12.14.19 at 5:04 pm

Which sw. package is generating these charts?

#43 wallflower on 12.14.19 at 5:28 pm

Damifino

woops
https://www.digitalmusicnews.com/2013/04/24/thompson/

#44 WUL on 12.14.19 at 5:30 pm

And Mr. Irrelevancy arrives. Hi.

Toronto residents will be able to beat down their mortgage arrears this spring.

The Leafs are touring Alberta. Frostbitten toes will impair Marner, Matthews, Nylander and Spezza. In Oilertown tonight following a 3rd period collapse in Flambe Ville the other night. A reason for AB not to separate – easy wins.

So? No big $ expenditures on playoff ducats April to mid-June.

The creditors of the hapless and hopeless fans will be pleased.

By the way, where is “50 Years of Leafs Incompetence”??

By the way, I luv my Ontarian brethren.

#45 Flop... on 12.14.19 at 5:40 pm

#37 Doug Rowat on 12.14.19 at 4:07 pm

#15 Flop… on 12.14.19 at 1:07 pm

Robax, something different, good enough for me to trot this golden oldie out.

If you click on the link you will see why all the old bands are still touring.

As bands age there must arise serious questions regarding whether they can still profitably monetize ‘the tour’. Could the Stones tour without Keith Richards or U2 without The Edge? Probably. But not without Mick or Bono, I imagine.

However, the Eagles have figured that they can do it without Glenn Frey and I’ve read that Journey actually only has one original band member, so what do I know.

–Doug

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

Hey Robax, yeah I guess people will still pay up to get the meat and potatoes of a band.

Fleetwood Mac is still going in its umpteenth formation.

Lindsey Buckingham got fired last year for causing conflict, so they did what any smart person does.

Bring in an antipodean.

Hired former Crowded House and Split Enz frontman Neil Finn.

Here is my favourite Split Enz song regarding Vancouver’s weather and condo construction.

Six months in a leaky boat…

M45BC

https://m.youtube.com/watch?v=ar7DgREshAk

#46 Another Deckchair on 12.14.19 at 5:51 pm

@30 HH;

As an IT consultant, I’d be a bit more exact.

Sure, I now make more and do the work that I want to do, but, there are no stat holidays, no sick days, no holidays, no pension, etc. etc. My current contract has a paragraph stating either party can stop it, with 48 hours notice.

One time, I cut my salary in half (actually, a tiny bit more) to become an employee, for 20 years. That DB pension plan from that place has just started, and it is nice to have some $$ other than my contracting.

If I was REALLY smart (hindsight is 20:20) I’d have taken that job at Nortel, been employed to the end, and had taken the pension amount out, I’d have been set a decade earlier. (oh well! at least no ulcers here. ;-)

As long as every day is fun!

#47 akashic record on 12.14.19 at 6:08 pm

OK, it sucks to be a popstar financially.

Next Saturday can you teach them how to become one of those hedge fund managers on the first chart?

#48 espressobob on 12.14.19 at 6:19 pm

Leadership by example. Time proven results, instead of that old cliche of do what I say not what I do. What a pile of crap that is.

Youngsters need the facts, not the BS under achievers use as an excuse for their own shortcomings.

#49 Parksville Prankster on 12.14.19 at 6:28 pm

“The cumulative TFSA contribution limit currently sits at a meaningful $69,500.” …small typo, the cumulative TFSA total for 2019 is $63,500, not $69,500 as stated. On Jan. 1 it goes up to $69,500, no?

#50 Flop... on 12.14.19 at 6:34 pm

Hey Deckie, how you been, you just reminded me of that other chart I showed you a while back that you commented on.

Here is another take on it that might help the restless one…

M45BC

https://cdn.howmuch.net/articles/the-best-50-jobs-in-america-2019-f3a1.jpg

#51 BlogDog123 on 12.14.19 at 6:39 pm

Tell your kids to avoid jobs that can easily be outsourced:

Accounts payable, accounts receivable. You’ll see all the big firms like Accenture with offices in India, the Far East. Effectively moved those ‘daily workflow’ jobs that can be done electronically out of high-labour cost North America. Staffing firms in North America are good at making these jobs portable, flexible and with workers who are ‘easily replaceable’.

Software jobs (not the highest tier), nowadays most of them go to India. I read somewhere that IBM, Big Blue, now employs half of its workforce in India. Guess that the waves of outsourcing over the last decade has made SW developers tell their kids: “Think about another career where your entire department won’t get moved offshore.”

#52 crowdedelevatorfartz on 12.14.19 at 6:48 pm

@#15 Flop

i guess thats why she can afford to “celebrate”
Happy 30th birthday Taylor $wift

https://people.com/music/taylor-swift-30th-birthday-most-aggressive-holiday-party/

#53 Doug Rowat on 12.14.19 at 6:49 pm

#44 WUL on 12.14.19 at 5:30 pm

The Leafs are touring Alberta. Frostbitten toes will impair Marner, Matthews, Nylander and Spezza. In Oilertown tonight following a 3rd period collapse in Flambe Ville the other night. A reason for AB not to separate – easy wins.

Matthews versus McDavid tonight. As comment #74 of the below attests, I’ve never understood the debate. Certainly no one is debating it this year. And I’m from Toronto.

https://www.greaterfool.ca/2019/01/12/decisions/

–Doug

#54 Barb on 12.14.19 at 6:58 pm

Also please advise teenagers to not dress like that when applying for a job.

Unless they don’t want the job.

#55 crowdedelevatorfartz on 12.14.19 at 6:58 pm

@#34 Boris Corbyn
““And the budget will euuuh balance it’s ahem self” T2″
+++++

You give Mr Trudeau far too much credit for his abysmal public speaking technique.

He sounds more like this…..

” And, ahhh, ahhh, errrr, ummm, the ahhhh , ahhhh budget, will… ahhh, ummmm, errrr ,ahhhh , the budget will ummmm errrr ahhh, balance it’s ummmmm, errrr, ahhhh self….”

The most annoying interview to listen to ever….

#56 paracho on 12.14.19 at 7:06 pm

Great article Doug !

I have been investing in the healthcare and related fields for over a decade within my RRSP . Some of my well placed holdings are UHT, MPW, along with pharmaceuticals such as MRK.
I also hold CSH.UN as a seniors residence .
Considering adding and you just justified my logic ( call it deja vu)…
Any healthcare or seniors residence ETF you might consider ????
Thanks Doug !

#57 Paracho on 12.14.19 at 7:09 pm

Hey Doug !

Any healthcare etf you might recommend ???
Great article !

Thanks Doug( already hold some names such as UHT, MPW as individual holdings within my RRSP along with CSH.UN)

#58 Flop... on 12.14.19 at 7:14 pm

Crowdie.
@#34 Boris Corbyn
““And the budget will euuuh balance it’s ahem self” T2″
+++++

You give Mr Trudeau far too much credit for his abysmal public speaking technique.

He sounds more like this…

The most annoying interview to listen to ever….

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

You obviously haven’t seen Ryan Lewenza on BNN!

Ha!

Ol’ InfLewenza is gonna give it to me next Saturday…

M45BC

#59 Flop... on 12.14.19 at 7:32 pm

Getting old.

After seeing Scheer walk and Trudeau trying to talk, among other happenings this week , came across a realization that I’m at some sort of aging crossroad.

This is the first time I remember a series of world leaders being younger than me, or around the same age.

Saw Kiwi Prime Minister Jacinda Arden, 39, I think, being compassionate again after the volcano tragedy, the last time I saw her was for the mosque mass shooting.

Finland just went crazy young with Sanna Marin, whom I am 11 years older than.

I wonder what I will be when I grow up…

M45BC

#60 crowdedelevatorfartz on 12.14.19 at 7:34 pm

@#54 Barb
“Also please advise teenagers to not dress like that when applying for a job.
Unless they don’t want the job….”
++++

Look on the bright side
They arent covered in obligatory Tats!

Now a days .
I’d be impressed if they even showed up for an arranged interview….late….

P.S.
Another good article Doug.
Unfortunately
I just think that most parents (let alone their teen aged sprogs) are more interested in the latest sports stats than investing.

Unless , of course, you were talking to all us brilliant blog dogs with sprogs ?

#61 crowdedelevatorfartz on 12.14.19 at 7:37 pm

@#59 Floppie
‘I wonder what I will be when I grow up…”

+++++
Older and hopefully wiser.
But dont get your hopes up.

Its over rated…

Ok Millenials?

#62 Nonplused on 12.14.19 at 8:15 pm

“The world needs more artists, musicians and poets.”

If that were true then it would pay better. In the real world it’s one of the worst paying professions out there. And when you consider what an extreme distribution it is, the mode is well below the mean. A few Taylor Swifts keep the average up and distort the real picture, which is this: You probably aren’t going to feed yourself as an artist, musician, or poet, let alone your family.

The problem with mass entertainment is that ever since the invention of the radio and the record player we are all listening to the same few artists. We all watch the same few movies. We all buy the same few prints and hang them on the wall. We all watch the same few sports teams.

You see the same sort of distribution on YouTube, where PewDiePie has 7 million subscribers so he can make a handsome income basically making silly videos of him playing video games, but most content creators struggle to make a few hundred dollars a month. Or you have the odd video that goes viral like “Gangnam Style” or “What Does The Fox Say” and the video generates millions of revenue for the creator. Something like “What Does The Fox Say” would pay over $2 million for just that one video but there are only so many of those to go around. Most content creators struggle to make any money at all. YouTube pays between $2-7 for each 1000 views, so even at 50,000 views per video you might only be making $100. $350 tops.

So a better and ongoing conversation to have with your teenage children is around education and employment. I don’t believe it is particularly useful to have a predetermined career in mind unless you plan to be a dentist, doctor, lawyer, or a teacher, in which case it’s clear what education you need. But it is important to talk about developing a marketable “skill stack”. For instance, being able to program computers is a marketable “skill”. Having a trade is a marketable “skill”. Artistic design is a somewhat marketable “skill” especially when combined with other skills. But if you go to school to study film directing chances are you will be working as a waiter. There just aren’t many openings and you have to compete with Tim Burton for the job. Good luck.

So the most important conversation to have with your teenager when it comes to money is “what marketable skill stack do they wish to develop?” After all they are not going to be saving $1,000 a month with a degree in fine arts unless they happen to write a hit song. They will need more things in the skill stack than just that.

Once there is an income, then it is important to talk about that four letter word of household finance: “Budgeting”. One has to live below his/her/zee means to have something left over at the end of the month to save and invest. Then we can get on to the importance of things like compound interest and such. Compound interest is of no use to you if you are still paying off a student loan acquired to get that degree in Art History.

Follow your dreams if you must, even audition for America’s got talent. But before you make that plan A, B and C make sure and get a reasonable idea of how many people tried out vs. the number who make it to the end of the season and win the $1 million. Not even Susan Boyle won (although she did get a recording contract).

If you encourage your children to dream big and study small, they will never be able to leave the basement.

You should also remind yourself before you spend $100,000 on hockey fees, equipment, transport and training and all the time involve over the course of 16 years of training that only 1 minor league player in 10,000 plays even 1 game in the NHL. It’s the most expensive lottery ticket ever. Your odds are better if you spend $100,000 on Lotto Max. These calculations don’t work out because most kids drop out of hockey before they reach the age of 16 once they realize they are never going to make tier 1, but if we assume for simplicity that all 10,000 Tim Bits players went all the way through to the minor leagues, $1 billion would be spent for every 1 player that played 1 game in the NHL. Biggest scam in history. Don’t suggest to your kid sports is a career option. If he is the 1 in 10,000, the scouts will find him. Instead, if he does want to play, let him play for the fun of it. But don’t confuse it with a career. If anything, the ultra-competitiveness of it will make him/her/zee unsuitable for management positions that require more mastery of human relations than dropping the gloves.

Remember folks, you can’t invest if you don’t have any money. And you can’t get any money if you don’t have a marketable skill stack. You can dream the dream until you graduate from junior high. After that you have to get a lot more serious.

#63 Skatch on 12.14.19 at 8:21 pm

The thought of taking dividend payments from health care company stocks feels horribly wrong to me. That money should be used to lower the cost of the drugs for people that are literally DYING that need them. Yes healthcare will be a good investment over the coming years as long as you can sleep at night and look at yourself in the mirror knowing that you made money off of sickness and death.

I do love Nirvana though and can agree with you on that.

#64 Sold Out on 12.14.19 at 8:41 pm

#30 HH

I hate to disabuse you of your views on psych nursing. Might be a good choice for men, but combining misogyny with mental illness leads to psychiatric wards being the most violence-prone healthcare setting. Nurses make good bank, but not worth being smacked in the face with a 5lb weight, hefted by a 38 year old schizophrenic martial arts devotee.

Care homes are like seedy bars on Friday night, but the denizens are usually 98 pounds soaking wet, so when they start swinging it’s rare that anyone other than the elderly residents is in danger.

More men should go into nursing; maybe then patients will stop assaulting the staff. Health authorities will always put “patient care” above staff safety.

#65 WUL on 12.14.19 at 8:50 pm

FLOP:

I’m launching a lawsuit against you Monday morning.

My thumbs are becoming arthritic and developing “ankylosing spondylitis” (Loonie Doctor can be your expert witness) scrolling through the long articles you cut and paste here.

Lawyer up. You’ll spend the rest of your life in a courtroom!

I love you but frankly I’ve had enough and am at “wits end”. That’s Tasmanian for “your’re fckd”.

Govern yourself like an accordian.

Don’t contact me. Deal with my counsel, Smoking Man Q.C. in Calif. His address is hard to find and he’s nuts.

Thx,

WUL

P.S. Go Goolong Cats!

#66 HH on 12.14.19 at 9:03 pm

@ 46, Deckchair

Yes, true enough about “no stat holidays, no sick days, no holidays, no pension” and most contracts being terminatable by either party at short notice.

But to me, at least at this stage in life, ability to earn income 2X – 3X equivalent of full time salary analyst doing same work (I’d have to be middle management in order to earn what I earn now if I were full time) beats all other considerations.

That income difference lets me fatten my portfolio at a good enough pace to not worry about pension, while also easily covering any incidentals usually covered by full-timers’ benefit plans.

Yes, it takes a wee bit of extra stress to face the inherently finite/uncertain/temp nature of contract work. Having to look for new work every 1-2 years is work in itself. It’s not for everyone. But it’s not as hard as it sounds either.

When I look at some of my peers, I swear as a contractor I have a far less stressful life than people who are working hard in full time jobs, assuming management responsibilities and climbing the corporate ladder.

But good point about combining the two in one’s career and possibly grabbing the best of both worlds. My own plan is to contract for a decade or more, until my portfolio is fat enough and ready to provide some extra income, then “retire” into a quiet full time job with unspectacular salary (and if possible a future pension) in some lower cost smaller city.

#67 Flop... on 12.14.19 at 9:09 pm

WULLY

FLOP:

I’m launching a lawsuit against you Monday morning.

My thumbs are becoming arthritic and developing “ankylosing spondylitis” (Loonie Doctor can be your expert witness) scrolling through the long articles you cut and paste here.

Lawyer up. You’ll spend the rest of your life in a courtroom!

I love you but frankly I’ve had enough and am at “wits end”. That’s Tasmanian for “your’re fckd”.

Govern yourself like an accordian.

Don’t contact me. Deal with my counsel, Smoking Man Q.C. in Calif. His address is hard to find and he’s nuts.

Thx,

WUL

P.S. Go Goolong Cats!

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

Hey WULLY, I thought you’d thank me for trying to keep your thumbs warm.

Maybe practice by reading a Nonplused post first before you join the big boys in the pros.

I’m alright with spending the rest of my life in a courtroom as long as there’s heat and good coffee.

Geelong Cats bombed in the finals but you’re probably still sore after you lost that bet and had to donate $20 to charity.

You play with the Flop, you get burned.

Next time your in Vancouver keep an eye out for a guy with a Manchester United hat, Kansas City Chiefs scarf, Philadelphia Flyers sweatpants and a Carlton Football Club Guernsey.

That be I…

M45BC

M45BC

#68 WUL on 12.14.19 at 9:42 pm

#53 Doug Rowat on 12.14.19 at 6:49 pm

Doug,

Noted and thanks. I should keep my big yap shut. 2-0 Leafs vs. Oil on my PVR with 5:44 left in the second. Don’t spoil my evening in Ft. Mac.

In any event, in Cowtown, Monahan and Gaudreau will never lead the Flames to the promised land.

Do Dave Keon, Doug Gilmour, Wendel Clark, Sundin or George Armstrong have progeny that Dubas could sign.

A parade past yur office tower, shutting it down, could occur on a boffo, big time day on the markets. Downer.

Cheers,

WUL

#69 oh bouy on 12.14.19 at 9:59 pm

@#53 Doug Rowat on 12.14.19 at 6:49 pm
#44 WUL on 12.14.19 at 5:30 pm

The Leafs are touring Alberta. Frostbitten toes will impair Marner, Matthews, Nylander and Spezza. In Oilertown tonight following a 3rd period collapse in Flambe Ville the other night. A reason for AB not to separate – easy wins.

Matthews versus McDavid tonight. As comment #74 of the below attests, I’ve never understood the debate. Certainly no one is debating it this year. And I’m from Toronto.

https://www.greaterfool.ca/2019/01/12/decisions/

–Doug
________________________________

Mcdavid looked great in another losing effort.
Can’t wait til’ he comes home to TO.

#70 IHCTD9 on 12.14.19 at 10:00 pm

What is this song all about?
Can’t figure any lyrics out
How do the words to it go?
I wish you’d tell me, I don’t know
Don’t know, don’t know, don’t know, oh no
Dnn’t know, don’t know, don’t know

Now I’m mumblin’ and I’m screamin’
And I don’t know what I’m singin’
Crank the volume, ears are bleedin’
I still don’t know what I’m singin’
We’re so loud and incoherent
Boy this oughtta bug your parents
Yeah!

https://www.youtube.com/watch?v=FklUAoZ6KxY

#71 akashic record on 12.14.19 at 10:15 pm

#35 Casey on 12.14.19 at 4:00 pm

Taylor Swift earnings vs hedge fund manager.
But who can sing better?
Garth say Adele.

Why not tell the kids to get some education, best investment.

—-

George “OpenSociety” Soros and Dick “fake war that kills estimated 2.3 millon since 2003 Carlyle Group” Chaney joins to grab the rights to millennial Taylor Swifts early works.

Hedge fund strange fellows.

#72 Seeker on 12.14.19 at 11:07 pm

Our eighteen year old is taking a gap year before deciding to enroll in some kind of formal training. The financial advisor at the bank told me today to move the funds from the RESP into safer assets like bonds, etc., as the money would be needed next year for schooling. He talked quite a bit about a recession that could really affect the RESP investment, so to keep the money safe we should move it to something safer if we start pulling money out of it next year…Is this the best thing to do now?

#73 Gravy Train on 12.14.19 at 11:30 pm

#62 Nonplused on 12.14.19 at 8:15 pm
“If [it were true that ‘the world needs more artists, musicians and poets’] then it would pay better. In the real world it’s one of the worst paying professions out there. And when you consider what an extreme distribution it is, the mode is well below the mean.[…]” You don’t even try to inform yourself by researching a topic before you spout off on it. Artistic expression can readily be seen in such well-paid occupations as architect, commercial or industrial designer, interior designer, curator, museum conservator, etc. :)

#74 Blog Duog Ford on 12.14.19 at 11:43 pm

@ #1 Steve French on 12.14.19 at 11:17 am

Lol, nice parody of mcbeth

#75 Blog Duog Ford on 12.14.19 at 11:51 pm

#18 will on 12.14.19 at 1:48 pm

That’s very interesting question. Anyone know the answer to that?

#76 SoggyShorts on 12.14.19 at 11:57 pm

#30 HH on 12.14.19 at 3:37 pm

Cut out the middle man. Many(most?) Professions bill out at over $100/h, thats what the customer pays a plumber, carpenter whatever. So the trick is to work really hard for a company, make contacts and if your company doesn’t compensate you fairly then cut them out and work directly for the clients.
If necessary you can undercut the competition due to lack of overhead costs.
If you feel that you can’t steal your company’s clients then target those that they have lost.
The next step is optional where you then hire some newer players and become the middleman yourself.

That’s my formula anyways. My company totally screwed me over but since I didn’t have a non-compete I walked with my Rolodex (personal phone FTW!)

#77 james on 12.15.19 at 12:02 am

just a heads up if you use an image like the Nirvana one on a blog without permission, you could get sued. there are firms that use technology to search for this. happened to me a few times,.sometimes years down the road.

#78 HH on 12.15.19 at 1:00 am

@ Sold Out

Oh believe me, I don’t have any overly rosy views on nursing. The nurse relative of mine regularly tells me enough real life horror stories from work to dispel any such illusions.

One of those stories was actually about a scenario horrifyingly close to what you mention that happened in one of nearby hospitals recently: mentally unstable MMA-trained guy took out a nurse and a security guard, inflicting critical/coma-inducing level of damage. It wasn’t even in a psych ward by the way. It happened on a regular medical floor apparently.

So yeah, no such thing as free lunch in life. When somebody makes good bank, there are always some risks or stresses involved…

Maybe more men ought to go into nursing. I am told it’s no bad thing being one of a few guys in that female-dominated workplace. Apparently, while often utterly vicious to each other, the ladies tend be pretty decent to the few “minority” male colleagues among them…

#79 Smoking Man on 12.15.19 at 1:55 am

Got a beauty drunk on tonight.

I love everyone…..

#80 Stan Brooks on 12.15.19 at 2:32 am

Your recognize when a person is lying, his eyes are blinking on every second word and his lips are moving…

https://ca.yahoo.com/news/liberals-move-deliver-tax-cut-163851460.html

Generous tax cut of 300 bucks for minimum wage worker in 4 years (i.e. $ 75 bucks a year called ‘significant’ tax cut’ with carbon tax alone projected to steal 2000 per family, groceries alone to increase by $ 450 per family next year (so expect $ 700)

Note: It is tax cut, not (15 %) of inflation adjustment.

#81 Blub on 12.15.19 at 3:35 am

Musicians are poor role models! Look up to hedge fund managers!

#82 Frances on 12.15.19 at 8:08 am

Parksville Prankster is correct. The cumulative TFSA limit is $63,500. It will increase to $69,500 on January 1st.

#83 Helen McStuffles on 12.15.19 at 9:22 am

If groceries get too expensive, watch for Kraft Dinner sales to skyrocket. Time to eat cheap people!

#84 MF on 12.15.19 at 10:24 am

#20 Sold Out on 12.14.19 at 1:53 pm

Look at what happens to kids who get forced into a certain profession “because their parents made them”.

These are the former STEM grads that drop out to do what they want.

Advising your children about money, and potential careers is hugely important. Choosing it for them is a recipe for disaster.

MF

#85 Doug Rowat on 12.15.19 at 10:32 am

#62 Nonplused on 12.14.19 at 8:15 pm
“The world needs more artists, musicians and poets.”

If that were true then it would pay better. In the real world it’s one of the worst paying professions out there. And when you consider what an extreme distribution it is, the mode is well below the mean. A few Taylor Swifts keep the average up and distort the real picture, which is this: You probably aren’t going to feed yourself as an artist, musician, or poet, let alone your family.

Inspiring stuff. You weren’t whispering in Cobain’s ear in April ’94 were you?

–Doug

#86 IHCTD9 on 12.15.19 at 10:43 am

#73 Gravy Train on 12.14.19 at 11:30 pm

” ….Artistic expression can readily be seen in such well-paid occupations as architect, commercial or industrial designer, interior designer, curator, museum conservator, etc. :)
—————-

Good point. Art really is everywhere.

I remember a thread on a large Mustang forum years ago where a dude had noticed a trend with Car guys where they had other artsy hobbies other than cars. Usually music and sketching, but the realization was that building a 10 second foxbody was also “art” and the desire came from the same place.

I look at my old ‘52 track loader and consider the Epicyclic Diff-steer system it has as art. An old 2 stroke Detroit Diesel is art too once you understand how it works.

Even the deck I built out back is art, so is the front porch railing I built.

#87 Doug Rowat on 12.15.19 at 10:44 am

#56 paracho on 12.14.19 at 7:06 pm
Great article Doug !

I have been investing in the healthcare and related fields for over a decade within my RRSP . Some of my well placed holdings are UHT, MPW, along with pharmaceuticals such as MRK.
I also hold CSH.UN as a seniors residence .
Considering adding and you just justified my logic ( call it deja vu)…

Less than a half-dozen individual stocks is insufficient diversification. As an example of the dangers of over-concentration: marijuana stocks are actually considered part of the Canadian health care sector.

Focus on broad-based health care ETFs that have a global revenue focus and at least a few hundred individual positions.

–Doug

#88 IHCTD9 on 12.15.19 at 11:12 am

#64 Sold Out on 12.14.19 at 8:41 pm

More men should go into nursing; maybe then patients will stop assaulting the staff. Health authorities will always put “patient care” above staff safety.
——-

Opening available for Registered Nurse:

Must have completed RN course and 5 years relevant experience. Ideal candidate will be 6’-5”, 260 lbs with demonstrated ability to bench 400. Preference given to applicant possessing a Black Belt in Brazilian Jujitsu. Former UFC experience a plus.

Apply within.

#89 IHCTD9 on 12.15.19 at 11:33 am

#28 TalkingPie on 12.14.19 at 3:10 pm
I’m convinced that a person’s parents’ relationship with money is a huge factor in their own financial success.

Yes, you get the whole “privilege” angle, but that’s not what I’m talking about. If kids see their parents spending wastefully, not saving, and going into debt, they will think it’s normal behaviour and emulate it. On the other hand, if they see parents who are financially responsible, they’re far more likely to be responsible themselves.
——-

“Teach by doing”, or thru osmosis.

Our kids seem to prove your assertion. The wife and I never spent big, live in a normal house, and drive normal cars. We did this for our own reasons. Kids see this as normal. They also have heard us discuss costs, and approve/discard certain expenditures. They talk the same way now. They understand we could have been more extravagant.

But, Ms. IH and I are cut from the same financial cloth, so maybe the kids were doomed to be the same as us.

I guess that is another question. Is good financial decision making learned, or do you get yours in a package deal along with other characteristics via your genes?

#90 Cannibal on 12.15.19 at 11:39 am

83 Helen – why? Are cheap people tastier?

#91 Dr V on 12.15.19 at 11:45 am

76 soggy – plumbers and Carpenters are tradespeople, not professionals.

#92 Shawn Allen on 12.15.19 at 11:52 am

Mind the Gap

#72 Seeker on 12.14.19 at 11:07 pm

Our eighteen year old is taking a gap year before deciding to enroll in some kind of formal training.

*******************
I’d be very leery of a gap year idea. In my family (5 siblings and hordes of cousins) those who got on and did something concrete right after high school ended up mostly doing well. I am talking about people who are mostly in their mid 50’s or older today.

There were some who availed of summer work with pogey in the winter and and live with parents and those that went that way never really got going meaningfully in careers. Or even if they did they find themselves way behind financially as retirement age looms.

On the other hand I remember a family where the son quit high school. The father made that son get up and be out of the house by about 8:30 and not return until about 5 pm. I think he moved on with life in short order.

It sounds very dangerous to let a kid have a “gap year”. What is that, a year off of life’s responsibilities? If the kid won’t enter some kind of education program, then absolutely insist they get some kind of job. No sleeping in and staying up late.

#93 Doug Rowat on 12.15.19 at 12:09 pm

#63 Skatch on 12.14.19 at 8:21 pm

Yes healthcare will be a good investment over the coming years as long as you can sleep at night and look at yourself in the mirror knowing that you made money off of sickness and death.

—-

Like doctors? And to think they actually believe they deserve a salary.

—Doug

#94 Spaccey on 12.15.19 at 12:24 pm

The next lesson should %ages.

Donating 20% of net pay is far, far too much to be putting aside for donating, especially likely living in Canadian cities with the highest cost of living in the world, when in a few years he will already be “donating” to the 40% of households that pay no tax, and to the billions Canada gifts worldwide each year. By what logic does a populace with a near 200% debt/income ratio give away money?

It’s kind of amusing/irritating how the average American/Canadian has this guilt complex installed thinking they are far better off than everyone around them, when most actually have negligible net worth and the “others” are living a comparable quality of life at a quarter to half the cost.

#23 FreeBird on 12.14.19 at 2:31 pm
Yes, financial literacy is almost nil and awareness of why it’s important and why not to just rely on govt handouts is maybe worse. You’re up against corp MSM and 90% of social media. A for effort though.

Friends give their 5 yo (going on 25) son $5 ea week (for his age) and teach him to divide it:

$2 for spending
$2 for saving (good old piggy bank)
$1 for donating

#95 Sold Out on 12.15.19 at 12:35 pm

#84 MF

I wasn’t advocating “degree by parental fiat”. Parents should, however, be involved in ensuring that their children are exposed to a variety of choices, whether educational or occupational. I think too many kids are pushed into ill-fitting careers based on parental bias, too.

My point was that a 16 year old has no practical understanding of how the choices they make at that age will compound, like interest, over the course of their life. They need the benefit of someone else’s experience, and mistakes, to fill in the gaps in their understanding.

Kids today don’t seem to rush into independence with the same urgency as my cohort; as with all things, there’s good and bad sides to that. Parents also have consider that post-secondary education is not the passport to social mobility that it once was. Their children might actually have a better, intuitive understanding of that.

The only thing worse than being shoe-horned into an ill-fitting career is, taking on huge debt to find that out.

#96 Sold Out on 12.15.19 at 12:49 pm

#88 IHCTD9

Never underestimate the therapeutic value of a solid rear-naked choke!

#97 crowdedelevatorfartz on 12.15.19 at 1:21 pm

@#86 IHCTD9
“Even the deck I built out back is art, so is the front porch railing I built.”

+++++
Art?
Easy there big fella….or I’ll eat your duct taped banana…

https://globalnews.ca/video/6275117/performance-artist-says-hes-not-sorry-for-eating-banana-displayed-as-art-in-florida

#98 crowdedelevatorfartz on 12.15.19 at 1:30 pm

@#91 Dr V

“76 soggy – plumbers and Carpenters are tradespeople, not professionals.”
+++++

Their customers and accountants might disagree with that statement….

#99 SoggyShorts on 12.15.19 at 1:32 pm

#91 Dr V on 12.15.19 at 11:45 am
76 soggy – plumbers and Carpenters are tradespeople, not professionals.
*******************************
Tradespeople are professionals.
https://www.merriam-webster.com/dictionary/professional

Anyways my formula applies to IT guys, environmental consultants, lawyers and accountants as well as carpenters plumbers and ditch diggers.

Basically this: if company ABC calls Company XYZ to get them to do a thing with a keyboard or a hammer, there is a middleman who can be cut out.

You can work for company ABC until you become really good at doing that thing with a keyboard or a hammer and then offer your services directly to company XYZ based on your existing reputation and proven skills.

Obviously there is more to it than that to becoming a successful contractor, but the concept is there.

#100 Barb on 12.15.19 at 1:38 pm

“…just a heads up if you use an image like the Nirvana one on a blog without permission, you could get sued.”

————————–
Not if blog isn’t monetized…earning money from ads.
Often easier to ask for forgiveness than permission.

#101 Shawn Allen on 12.15.19 at 1:57 pm

#91 Dr V on 12.15.19 at 11:45 am

76 soggy – plumbers and Carpenters are tradespeople, not professionals.

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

A couple points:

First, the quote at 76 said that plumbers were in a profession not that they were professionals. So maybe Dr. Snob was should read more carefully.

From 76:

“Cut out the middle man. Many(most?) Professions bill out at over $100/h, thats what the customer pays a plumber, carpenter whatever.”

Sounds, like a distinction favored by professionals. Anyone using that term to imply that professionals are “better” than tradespeople is a snob.

Some janitors are consummate professionals while some Doctors may be anything but professionals despite being a professional job category.

Basic human quality and intelligence distinctions between large groups and categories are always minor compared to the differences between people in the same group.

Belonging to a profession is not sufficient to qualify someone as an actual professional as an individual.

#102 Gravy Train on 12.15.19 at 3:41 pm

#62 Nonplused on 12.14.19 at 8:15 pm
“In the real world [artists, musicians and poets are some] of the worst [paid occupations] out there. And when you consider what an extreme distribution it is, the mode is well below the mean.” The median wage for fine artists, including painters, sculptors and illustrators, is $23.74 hourly ($49,380 annually).
https://www.onetonline.org/link/summary/27-1013.00

The median wage for poets, lyricists and creative writers is $29.89 hourly ($62,170 annually).
https://www.onetonline.org/link/summary/27-3043.05

The median wage for instrumental musicians is $28.15 hourly.
https://www.onetonline.org/link/summary/27-2042.02

#103 Nonplused on 12.15.19 at 7:48 pm

#73 Gravy Train

Straw man argument. I didn’t mention the professions you mentioned, only the ones Doug did, and I never said artistic expression couldn’t be part of the skill stack. In fact I said quite the opposite.

#104 Nonplused on 12.15.19 at 7:58 pm

#85 Doug Rowat

“Inspiring stuff. You weren’t whispering in Cobain’s ear in April ’94 were you?

–Doug”

No, but I bought the album. As did millions. We all bought the same album. Cobain was one in a million. Maybe one in 50 million. My children probably aren’t. Once you get a recording contract you can talk to me about how your band is doing. Until then pay attention to your studies.

Also Cobain met a bad end even though he had it all. Is being famous worth it if you need to be high all the time to deal with it?

#105 Nonplused on 12.15.19 at 8:10 pm

#102 Gravy Train

Again you are not paying attention to what the distribution looks like. For every Taylor Swift making $1,000,000 a night there are thousands of would be singers working at Starbucks and including that income in the stats.

The highest income you listed was $29.89 an hour. That’s not exactly killing it. It’s going to take a long time to pay off the student loans. And being the median, half the people make less. Around here where I live all teachers, even art teachers, make more. But they also have teaching and working with children in their skill stack.

#106 Dog Breath on 12.15.19 at 8:48 pm

DELETED

#107 Dr V on 12.15.19 at 9:30 pm

Remember “devil’s advocate”? He claimed To be a “professional”.
I told him that Realtors are not professionals but that he may do his job “professionally”.

Am I a snob? Don’t think so. I would not wire my own house. I’d hire an electrician. That’s what they do.

Shawn – thank you for the clarification on “profession”.

#108 Gravy Train on 12.15.19 at 10:17 pm

#105 Nonplused on 12.15.19 at 8:10 pm
“Again you are not paying attention to what the distribution looks like. For every Taylor Swift making $1,000,000 a night there are thousands of would be singers working at Starbucks and including that income in the stats.” You can succeed as a musician in ways other than as a singer: as a composer or arranger, a music director, a music therapist, a music teacher, a musical instrument repairer and tuner, a sound engineering technician, etc., etc. Your lack of imagination limits the possibilities that are available to you. :)

“The highest income you listed was $29.89 an hour. That’s not exactly killing it.” It beat the median wage for butchers, bakers, and short-order cooks. :)

“It’s going to take a long time to pay off the student loans.” Why discourage people with artistic talent?

“And being the median, half the people make less.” And half make more! :)

“Around here where I live all teachers, even art teachers, make more. But they also have teaching and working with children in their skill [set].” Your original premise was, “In the real world [artists, musicians and poets are some] of the worst [paid occupations] out there.” That premise is patently false. :)

#109 Gravy Train on 12.16.19 at 8:50 am

#103 Nonplused on 12.15.19 at 7:48 pm
“Straw man argument.” Doug was talking about artists, musicians and poets. “Artistic occupations frequently involve working with forms, designs and patterns. They often require self-expression and the work can be done without following a clear set of rules.” Thus, such occupations as publisher, editor, columnist, fashion designer, art director, music director, broadcast news analyst, radio and television announcer, choreographer, dancer, geneticist, astronomer and Web developer all fit the category.
https://www.onetonline.org/find/descriptor/browse/Interests/

“I didn’t mention the professions you mentioned, only the ones Doug did, and I never said artistic expression couldn’t be part of the skill [set]. In fact I said quite the opposite.” “Artistic personality types (creators) like to work with ‘ideas and things.’ They tend to be ‘creative, open, inventive, original, perceptive, sensitive, independent and emotional.’ They rebel against ‘structure and rules,’ but enjoy ‘tasks involving people or physical skills.’” Again, your lack of imagination limits your possibilities. :)
https://en.m.wikipedia.org/wiki/Holland_Codes#A:_Artistic_(Creators)

#110 Gravy Train on 12.16.19 at 11:55 am

#30 HH on 12.14.19 at 3:37 pm
“[…] What’s totally obvious to you today, may be new and extremely useful information to a younger person starting out.” Have your youngster complete this O*NET Interest Profiler, and then get back to me with the results. :)
https://www.mynextmove.org/explore/ip