Banker angst

The finance minister says it’s all okay. Canada will be a northern paradise. The best employment picture in the G7. Only Andrew Scheer will lose his job.

But Susan isn’t so sure. She’s not buying the everybody-gets-a-pony message in this week’s economic update. In fact as a banker, she’s scared. The finance sector layoffs have already started after a disappointing set of earnings for the Big Six. And, as you know, the banks want to dismantle their costly and elaborate web of physical locations, shedding front-line workers and forcing customers to find an ATM or go online.

  (This is precisely how I obtained my sweet little stone BMO branch – so there is an upside…)

Bank of Montreal just announced that 5% of its workforce, or more than 2,000 people, will be laid off. RBC’s chief exec is warning of a few rough years. The fintech industry is snapping at the bankers’ heels. And loan loss provisions are up sharply – more than 50% at the CIBC and a third at TD and Scotia, for example.

Susan has some serious questions, therefore. But wisely prefaces them with a MSU.

If it wasn’t for your wise advice, I would neither have saved the amount of money that I have, nor learnt anything about investing.  My savings rate is approximately 60% of my salary, but every year I earn the same amount as I save.  This would not have been possible by investing in GICs, and I’ve tripled my investment money in the last 8 years.

Here’s my question.  My industry, Finance, is laying off thousands in the coming year, both in the US and in Canada.  I fear a job loss in the next few months or weeks.  What do you recommend I do to prepare for it?

I’m particularly stumped at what to do about my DB pension.  While I want to break it out into a LIRA, I’m afraid I will lose a substantial portion of it to taxes as I have no RRSP room.

You save two-thirds of your salary? That’s deserving of an Order of Canada, or at least a life membership (and your own parking spot) at Costco. Hopefully you’ve been stuffing your TFSA (since the DB pension restricts RRSP room accumulation) and building up a nice non-registered account chock full of growthy ETFs and enough fixed income to let you sleep at night, should the axe fall. (Sounds like you might have been too aggressive of late, however – so dial it back.) We have no details on your personal life, but you gotta be a frugal gal. Perfect, when your employment’s dodgy.

The pension? Big decision.

If you leave the funds where they are, inside the plan, there’s little to fear in terms of stability. The banks aren’t going bust. Ever. They are systemically important, and federally essential. Outside of government pension money and your dog’s love this is about as secure as it gets.

But there are still valid arguments for commuting the pension, leaving the plan and managing this money on your own. For example, if you stay in, every payment received in retirement will be fully taxable at source. No way to mitigate that. If you don’t need the income, you must still take it. That could push you into a higher tax bracket, which sucks. On the other hand, if you take possession of the cash and it sits inside a registered fund, you can dip in whenever you want and thereby better control your own marginal tax rate in retirement.

Second, by commuting you seize control. Instead of relegating investment decisions to an unknown and unseen pension administrator, you make your own decisions. That can be immensely satisfying. Third, you can tailor the investment strategy to your own needs, goals and personality. Pension managers’ primary mandate is to ensure funds are available to meet future obligations, while you might be more concerned about growth and getting a Porsche (to drive to Costco). Fourth, when you croak the money belongs to your estate, not the pension plan. You can pass it on to spouse, family, friends, charities and pets.

Now, what about the tax hit when commuting?

Typically a portion of a commuted pension can be rolled into a LIRA (locked-in retirement account – just like an RRSP, but not cashable until you reach retirement age). The remainder is given as cash,  taxed in that year as income. The Hoovering can be cut if you have RRSP room available but, sadly, poor Susan has none.

What to do?  Nothing. Take the money. Pay the tax. Move on. Remember if you stayed in the plan 100% of every cheque for the rest of your life would be taxable, so all you’re really doing in commuting is paying it now. It’s also wise to optimize when the cash is received. Most employers will offer an option of taking it immediately when leaving the pension plan, or a few months later within a new calendar year. Obviously taxes will be lower in a year of unemployment.

The biggest reason people don’t commute is, of course, fear. They think staying inside the corporate womb is somehow safer than taking charge of their own destiny. In some cases, (like this) that may make sense. For the 2,000 GM workers losing their jobs in Ontario this week, for example, it makes none.

 

136 comments ↓

#1 mj on 12.16.19 at 4:02 pm

sounds like we can have another bad month of job numbers

#2 Shawn Allen on 12.16.19 at 4:04 pm

China Bashing

#107 AGuyInVancouver on 12.16.19 at 2:25 pm claimed China has destroyed the world responding:

#76 Mississauga Mel on 12.16.19 at 6:03 am
#64 Shawn Allen

“Whatever China’s growth is, it is truly staggering.”

Correct Shawn. The 805 million figure should be adjusted to having left poverty. The middle class by NA standards is probably around 300 million which is still a staggering number. I know first hand because for the past decade I have seen 1000s of Chinese students coming through our international school in Toronto. The auto sales should give you the clue that the number is indeed large…
_ _ _
Great and in the process they destroyed the planet. The grap showing exploding green house gas emissions fits perfectly with China’s economic expansion.

*******************************
So Guy in Vancouver would have had the Chinese remain poor peasant farmers rather than increase their living standards per capita and emissions towards those of the western world?

Rather than bashing a billion people, I’d prefer to recognize that emissions are a global problem and require global solutions.

Currently the U.S. and may other countries are in the throes of denying globalism. This is actually probably the death throes of nationalism. Global problems will simply force global solutions. Stay tuned.

Also, meanwhile, from where I sit the world is a very nice place to live. Its demise has been greatly exaggerated.

#3 Linda on 12.16.19 at 4:08 pm

Take the money & run, Susan. There have been too many examples of pension plans where the recipients end up with a lump of coal instead of the shiny gold they were promised. Garth is correct that the big banks are highly unlikely to expire, but the big banks are also masters of extracting value while paying out a pittance. If they are looking to cut costs, you know things like a pension plan will be reviewed with an eye to seeing what can be done to mitigate the balance sheet.

#4 SmarterSquirrel on 12.16.19 at 4:12 pm

“I fear a job loss in the next few months or weeks. What do you recommend I do to prepare for it?”

One area to prepare is to understand what kind of severance offer you are entitled to from your financial industry employer. Most employers like to give a low ball bare minimum severance offer and then try to rush you into signing the deal. Do some digging and find out what your entitled to. You may see information that applies only to the Employment Standards Act, but under common law you are often entitled to more than the minimums set out in the Employment Standards Act. So when you do get a severance letter, get some advice from a lawyer on whether you should sign it or not.

When my employer let me go a few years back, they didn’t realize I was a lawyer in a former life and I let them know they were far off the mark on what common law says I was entitled to. I eventually got what I was entitled to after filing an action against them.

So don’t be afraid to make sure you get what you are entitled to. Read up on it now so you’re prepared in advance.

Otherwise, get ready for a job search, freshen up that resume and start looking for other openings (getting ahead of the crowd can be a good thing) and read up on what you have to do to claim EI.

Good luck Susan!

#5 Jack on 12.16.19 at 4:16 pm

Electricity prices jump 55% in Ontario, yet little to no news coverage! The province is rebating most of the increase to disguise the massive increase:

https://www.oeb.ca/newsroom/2019/ontario-energy-board-sets-new-electricity-prices-households-and-small-businesses

When time of use pricing first came to ontario 10 years ago the off peak rate was 2.7 cents … it’s now over 10 … almost a 400% increase!

#6 Leo on 12.16.19 at 4:16 pm

Its funny how the job numbers were all rainbows and unicorns right up to the election…. hummm

#7 crowdedelevatorfartz on 12.16.19 at 4:20 pm

Perhaps when the job number losses are worse than the previous 71,000 Nov. debacle ….. month after month after month…….. the idiots that voted for “Tax and spend Trudeau” will wake up

#8 crowdedelevatorfartz on 12.16.19 at 4:25 pm

@#114 just snootin’
“When can we expect
Trudeau’s
Helpful
Economic &
Fiscal
Talk?

+++++++

THEFT comes after…….

Liberal
Inventive
Economic
Strategy’s

#9 Jack on 12.16.19 at 4:25 pm

I’m wondering the same about my pension with omers. I plan to move to the US soon under an e2 visa. Planning to move commuted value of pension to a LIRA (have most of the overage covered in available rrsp room) and after I have permanent resident status in the US transfer funds out. I know there is a withholding tax of 25 percent, but will I have to pay income taxes in the US or can I transfer it into a pension vehicle there?

#10 JSS on 12.16.19 at 4:26 pm

No promises to even a public sector DB plan. Look at Alberta.

Seems like Boss hogg wants to get his hands on it, to invest in some heavy oil projects.

take the money and run!!!

#11 Don Guillermo on 12.16.19 at 4:32 pm

#1 mj on 12.16.19 at 4:02 pm
sounds like we can have another bad month of job numbers
***************************************
#6 Leo on 12.16.19 at 4:16 pm
Its funny how the job numbers were all rainbows and unicorns right up to the election…. hummm
******************************************
The majority of Canadians voted for one of the three left/socialist parties who’s main messages were to firehouse money out the window and to kill all resource sector jobs. There is no other way the Canadian economy can go … no surprises. Canadian voters will get what they deserve and sadly it’ll be a lot more than another bad month of job numbers.

#12 Yabba dabba doo on 12.16.19 at 4:33 pm

Trump says China Phase 1 deal translation will be completed in next couple weeks. ( WTF , a deal with no translation)

First Chistmas then we forget about it…

Then Chinese New Year, they forget about it….

The Art of the Non Deal.

#13 Leo Trollstoy on 12.16.19 at 4:45 pm

#4 SmarterSquirrel on 12.16.19 at 4:12 pm

Good advice

Severance payouts under case law is far different than what is recommended by ESA. The ESA is basically irrelevant IMO

https://business.financialpost.com/executive/careers/while-there-is-no-set-formula-here-are-the-factors-that-go-into-deciding-the-amount-of-severance

https://www.vwlawyers.ca/blog/long-service-worker-awarded-27-months-severance-pay

Lawyering up to fight a severance can be a very bad idea reputationally. – Garth

#14 Bill Grable on 12.16.19 at 4:46 pm

‘The dirty little secret that nobody dares whisper lest the whisper trigger a self-reinforcing avalanche is that this Fed-manipulated “market” is illiquid: if any serious selling were to arise, there wouldn’t be enough buyers to stave off a complete implosion of the bubbles’.

http://charleshughsmith.blogspot.com/2019/12/a-market-that-needs-1-trillion-in-panic.html

#15 Andrewski on 12.16.19 at 4:50 pm

Timely post Garth. I’ve forwarded today’s advice to a buddy who’s in a similar situation as Susan (minus the astounding saving rate of 60% of salary!) who’s wondering what to do, what to do.

#16 Boris Corbyn on 12.16.19 at 4:51 pm

Hard to cry for Canadian banks.

Get money from the nanny state at what 0.5% and charge 19.99% on credit cards? please…

Get mortages guaranteed by the nanny state? Please are we in socialist Europe now? (ooops, just been inform we’re heading that way)

Charge monthly fees for complete utter incompetence?
Yes, that they can do.

Can’t wait for transferwise / revolut and N26 to arrive in this country (if the nanny state can’t block them, trying really hard tho)

In my small town they are more banks than anything useful (I prefer bakeries than banks, sorry)

At one stage Canadian banks are going to have to learn to stop being protected by mummy and go fend for themselves, it’s a big world out there, lots of opportunities. Although that would mean growing a pair…

Canadian banks are among the most international and have a huge, profitable and growing presence in the US. Maybe you should lay off the croissants. – Garth

#17 Maigf Farded Shud-Idumphur on 12.16.19 at 5:02 pm

How much are the ATM fees for clawing the machine you sun of a beach?

#18 PA on 12.16.19 at 5:08 pm

Another reason for taking a LIRA is that at retirement when you convert it to a lif, you can take 50% of your stash and move it into and rrsp. Then if you have a younger spouse you can tied the rrsp/rif to their age. This would work well if you don’t need your full value at the start. Works extremely well when your spouse is 15 year your junior.

#19 Shawn Allen on 12.16.19 at 5:16 pm

The Alberta Government Pension Plan

#10 JSS on 12.16.19 at 4:26 pm
No promises to even a public sector DB plan. Look at Alberta.

Seems like Boss hogg wants to get his hands on it, to invest in some heavy oil projects.

take the money and run!!!

***********************************
Look at Alberta? You mean where the government pension plan is perfectly safe and is managed at arms length?

What “Boss Hogg” (the Premier) wants to do is move the Teachers Pension plan over to be managed along with the main Alberta government pension plans. Management of the funds would remain at arms length from the government. I don’t agree that this should be imposed on Teachers. But it is not in any way putting their pensions at risk.

If you have any facts to support an assertion that the promised payments from the Alberta government pension plans are at risk, please provide. Things like their solvency ratio.

Commuting a DB pension is a big decision and should not be taken lightly.

#20 Down and Out on 12.16.19 at 5:17 pm

The tragic news today is what was added to the national debt, when is it too much and explodes and transforms into something that everyone feels financially .To Quote”You’ve no doubt heard the story of the frog in boiling water. If you drop a frog into boiling water, it immediately jumps out (or so the story goes). However, if you put a frog in a pot of room-temperature water, and then bring the water to a boil very, very slowly, the frog will stay in the water until it dies. The government slowly puts us more in debt until we are all cooked.

#21 Islander on 12.16.19 at 5:17 pm

HI Garth, does any of this relate to a bank bail in for savers/depositer? Can you do a post on this topic? The only way I can think about going about this is diversifying institutions. Thanks.

#22 the Jaguar on 12.16.19 at 5:18 pm

The ‘Big Six’ agenda is less about Canada these days than becoming ‘North American’ banks. If you doubt this, check out their holdings south of the border. That’s where the opportunity is now that Canadian consumers have driven themselves into the money ditch. The one that just announced layoffs is building a 50 story office tower in downtown Chicago. That made front page news, but closure of cute little branches in places like Lunenburg or Cornwall not so much. It’s hard to fault them. They’re just trying to scratch out a living like everybody else, and most Canadians own bank stock, so no whining about their profits. What will be interesting in the coming years is where they base their operations. With increased investment in technology and digital platforms galore they will be able to snuggle up with their customers from just about anywhere. There’s an ‘APP’ for everything, right? And where they do need to plant warm bodies the decision will likely be driven by things like cheap labour costs and good taxation locations. Think hard on that one. Those who interface with business prospects are mobile, and those who run the background machinery are increasingly being encouraged to work from home. Saves the big six a lot of change when they don’t have to bother with troublesome leases on buildings and it’s so much easier to ‘disappear’ people when you have to cut staff. What this strategy lacks is a deep understanding of how important relationships are that have been built up over time. Trust. Compassion. Community. Loyalty.
The funny thing about loyalty is that it is a charity that begins at home. You can put up office towers and ‘re-brand’ your image from national to continental or even international, but attracting and retaining high value employees and a devoted customer base is the tricky part. And hopefully those loan loss provisions will quiet down. January is always an interesting month for those who patiently waited for Christmas and New Years to appear in the rear view mirror before dealing with matters of real estate, dissolving marriages, or financial calamity. Mercy.

#23 NorthOf49 on 12.16.19 at 5:20 pm

It’s a big bank DB pension, solid as a rock. If payments are indexed for inflation, leave it alone and relax. You worked this long for it, why worry yourself over running out of money if you take the lump-sum. Women on average live longer than men so the fear of running out of money is real.

My cop buddy retired early and took the payout from his solid DB cop pension, but also took the massive tax hit and now worries about running out of cash. Seems the idea of starting a business later in life isn’t turning out to be as lucrative as he thought.

#24 Another Deckchair on 12.16.19 at 5:20 pm

About electric cars. City of Ottawa wants to go 100% electric for buses and other vehicles.

Something to think about with the thoughts that electric cars will save the world:

Last week our bud Jaguar posted a link to a podcast by Art Berman. In that podcast there was this little nugget:

“But even still, I came across some data that said that for every single battery pack that’s in a Tesla, that battery pack has somewhere in the world five hundred thousand pounds of mining waste that’s sitting in a pile somewhere that had to be pulled out, extracted, and disposed of in order to get lithium for that battery pack.”

“And where do all those materials come from? It may change in the future, but for the foreseeable future, all the mining and extraction is done with diesel. All the shipping to manufacturing plants is done with diesel. All the manufacturing is done with coal and natural gas. All the shipping and distribution is done with diesel.

So when somebody tells you they’ve got a solar or renewable solution, I’m glad to hear it. I want to know, you know, just like all those piles of waste on a Tesla, what are the collateral fossil fuel requirements to do that? And I’m not trying to be difficult. It’s just we got to think integrated. We’re talking about complex earth and human systems, and you can’t just take, you know, the shiny piece of it that attracts you and say oh, that’s good, that’s what we like. No, it doesn’t work that way.”

Linkie: https://www.peakprosperity.com/art-berman-houston-we-have-a-problem/

#25 Shirl Clarts on 12.16.19 at 5:21 pm

#11 Don Guillermo on 12.16.19 at 4:32 pm
#1 mj on 12.16.19 at 4:02 pm
sounds like we can have another bad month of job numbers
***************************************
#6 Leo on 12.16.19 at 4:16 pm
Its funny how the job numbers were all rainbows and unicorns right up to the election…. hummm
******************************************
The majority of Canadians voted for one of the three left/socialist parties who’s main messages were to firehouse money out the window and to kill all resource sector jobs. There is no other way the Canadian economy can go … no surprises. Canadian voters will get what they deserve and sadly it’ll be a lot more than another bad month of job numbers.

^^^^^^^^^

“…will get what they deserve”.. what does that even mean? What exactly in all of your infinite hindsight would you have suggested doing on Oct 21st, given our ballot options?

Remember we gave the Cons the most votes, so we should have scored a Conservative minority with the Liberals as the official opposition. Not exactly a left-leaning socialist outcome.

Of course that should have been the case, but a little hard to orchestrate given the current FPTP voting system. Wouldn’t you agree?

#26 ukgb advertising limited on 12.16.19 at 5:22 pm

“Canadian banks are among the most international and have a huge, profitable and growing presence in the US. Maybe you should lay off the croissants. – Garth”

There is more to the world than the US. (thankfully)
China, India getting into the middle class etc.
HSBC is huge. Scotiabank and CIBC have just closed in the Caribean. RBC does do intl for metals in London UK.
Ask anyone in Asia or Europe about Canadian banks and you’ll get a blank stare.

There is no justification to the nanny state protection they get, CMHC and co.

And i’d rather have croissants that state legalised weed :)

#27 AGuyInVancouver on 12.16.19 at 5:23 pm

#2 Shawn Allen on 12.16.19 at 4:04 pm

So Guy in Vancouver would have had the Chinese remain poor peasant farmers rather than increase their living standards per capita and emissions towards those of the western world?

Rather than bashing a billion people, I’d prefer to recognize that emissions are a global problem and require global solutions.

Currently the U.S. and may other countries are in the throes of denying globalism. This is actually probably the death throes of nationalism. Global problems will simply force global solutions. Stay tuned.

Also, meanwhile, from where I sit the world is a very nice place to live. Its demise has been greatly exaggerated.
_ _ _
Remember when environmentalists used to shame us by saying stuff like “if everyone lived at Western standards to world would run out of resources etc..”. Well we found out the cost of lifting 300 million out of poverty: dying acidic oceans, melting polar ice caps, burning forests.

As Jesus Christ said “the poor are always with us”. There’s a reason for that, the planet can’t support 8 billion of the middle class. So until we develop space colonies, better 300 million more poor in China and a healthier planet than the alternative.

#28 What is MSU on 12.16.19 at 5:47 pm

“but wisely prefaces it with MSU”. What does acronym that stand for, out of all the possibilities listed at https://acronyms.thefreedictionary.com/MSU ? Perhaps “Mid-Stream Urine”?

#29 Ponzius Pilatus on 12.16.19 at 5:48 pm

No layoffs or bank closures in the Lower Mainland.
The Scotia Bank is hiring.
I remember in 1984 when the first ATMs appeared: prediction of mass closures of branches.
Did not happen. The opposite did.
You can’t sell products to customers who use ATMs.
The first virtual branch less bank, Citizens Bank of Canada went under in early 2000s.
Most new immigrants are coming from countries with shady banking systems.
They like the brick and mortar. It instills confidence.

#30 Kitsilano Kid on 12.16.19 at 5:57 pm

Take the cash and buy YVR real estate – can’t miss.

#31 Sail away on 12.16.19 at 5:58 pm

#4 SmarterSquirrel on 12.16.19 at 4:12 pm

One area to prepare is to understand what kind of severance offer you are entitled to from your financial industry employer. Most employers like to give a low ball bare minimum severance offer and then try to rush you into signing the deal.

So don’t be afraid to make sure you get what you are entitled to. Read up on it now so you’re prepared in advance.

————————————–

Entitled, schmentitled.

I read your post as… “extort as much as you can from the company that kept you gainfully employed for xxxx years.”

I see your blog name is a rodent. Maybe the wrong rodent?

#32 Laowai Local on 12.16.19 at 6:00 pm

@shawnallen
Careful there. You need to do more research. you are dangerously wrong about the Middle Kingdom.

#33 crowdedelevatorfartz on 12.16.19 at 6:05 pm

@#24 Ponzie
“I remember in 1984 when the first ATMs appeared: prediction of mass closures of branches.”
++++

I remember in the late 1970’s a relative worked at CIBC.
The first Canadian bank to have ATMs
The roll out was for staff first, then the general public about 6 months later.
We wanted to see this new “miracle money machine….so we all piled into the family car and drove to the first and only ATM in the city to watch them use it.
All it did was accept deposits and issue cash.
No bill payments , nothing.
We were like rubes at the travelling circus.
Gape mouthed amazement.
Money…..from a machine……. what will they think of next?

#34 Mike on 12.16.19 at 6:12 pm

“Lawyering up to fight a severance can be a very bad idea reputationally. – Garth”

What a load. Employers aren’t loyal to employees and vice versa anymore Garth. I know of two individuals who received severance after MANY years of faithful service (29 & 19 years respectively).

As gratitude, their employers tried to screw them and everyone else that was laid off and not by a little either, but by hundreds of thousands of dollars. They were both told the same by two different companies “Sign here or you get nothing”.

It’s not a matter of employer-employee loyalty but of avoiding the rep as a troublesome person to hire. Many industries and locales are small enough that this can injure you far more than a few more severance dollars can benefit. Be careful. – Garth

#35 Ponzius Pilatus on 12.16.19 at 6:19 pm

#31 Sail away on 12.16.19 at 5:58 pm
#4 SmarterSquirrel on 12.16.19 at 4:12 pm

One area to prepare is to understand what kind of severance offer you are entitled to from your financial industry employer. Most employers like to give a low ball bare minimum severance offer and then try to rush you into signing the deal.

So don’t be afraid to make sure you get what you are entitled to. Read up on it now so you’re prepared in advance.

————————————–

Entitled, schmentitled.

I read your post as… “extort as much as you can from the company that kept you gainfully employed for xxxx years.”
————————
You obviously believe the relationship between employer and employee is an equal one.
It’s because of employers like you why we have unions and employment laws.
In which part of Canada is your plantation?

#36 Camille on 12.16.19 at 6:32 pm

Yes, bricks and mortar may not disappear so fast. You are particularly witty today. Liquidity is a problem. Causing treasuries to weaken. Short term problem. Mini crash coming soon?

#37 Ponzius Pilatus on 12.16.19 at 6:36 pm

The secret is banks actually don‘t like people using the ATMs.
ATMs are loss leaders. They cost a lot to maintain and are a high security risk.
Banks want the customers to come into the branch, so they can sell them products that make them lots of money.
[email protected] is there to fleece you.

#38 Don Guillermo on 12.16.19 at 6:40 pm

#25 Shirl Clarts on 12.16.19 at 5:21 pm

“…will get what they deserve”.. what does that even mean? What exactly in all of your infinite hindsight would you have suggested doing on Oct 21st, given our ballot options?
Remember we gave the Cons the most votes, so we should have scored a Conservative minority with the Liberals as the official opposition. Not exactly a left-leaning socialist outcome.
Of course that should have been the case, but a little hard to orchestrate given the current FPTP voting system. Wouldn’t you agree?

****************************************
55.5% of Canadians voted for Lib/NDP/Green and their tax & spend job killing policies. It means exactly that – they will get what they deserve.

#39 Sail away on 12.16.19 at 6:57 pm

#35 Ponzius Pilatus on 12.16.19 at 6:19 pm

You’re the best! I wish all employers could be like you. Just knowing you over this blog makes me strive to be a better person.

In which part of Canada is your plantation?

————————————-

Ponzie, Ponz, P… that’s sweet. Thanks, bro.

Join me on the plantation for the holidays? A sleighride, a fire, a little eggnog…. Maybe some carols in the snow?

#40 SW on 12.16.19 at 7:04 pm

Well, Susan sounds like a smart well-organized person.
What does she plan to do next, if she is let go?
If she has something in mind, would it be worth her while volunteering for lay-off, rather than waiting for the axe to fall?
I’ve been in this situation; perhaps you can get a better pay out, and it certainly better to take charge of your life rather than wait, miserably, for the axe to fall.

#41 Long-Time Lurker on 12.16.19 at 7:05 pm

Well, I loaded up on the S&P 500. Let’s see if I got this Santa Claus rally thing right.

So, how well are robo-advisors going to do in a financial crisis?

#42 OnTheBeachInCali on 12.16.19 at 7:07 pm

Susan, will you marry me?

#43 David on 12.16.19 at 7:13 pm

Totally disagree that a large bank could never fail. Nortel could never fail either, and lifetime employees lost virtually their entire pension – completely screwed – didn’t even get their contributions back. Always take the money and invest it – always. Didn’t royal bank of Scotland fail? One of the uk largest? Isn’t one of germany’s Largest teetering..

#44 reynolds531 on 12.16.19 at 7:22 pm

I worked for a bank for many years. Some direct experience.

1) the decision to commute -remember the person suggesting you withdraw is likely benefiting from that decision
2) the formula for pension payout and for monthly payments are both very lacking for bank db plans. You’re not as rich as you think.
3) banks don’t like and often won’t allow your boss to give you a reference anyway…go ahead and fight

Fear, not logic, keeps most people from commuting when they would benefit from doing so. You sound bitter. – Garth

#45 Barb on 12.16.19 at 7:23 pm

#4 SmarterSquirrel on 12.16.19 at 4:12 pm

” I eventually got what I was entitled to after filing an action against them.”

“Lawyering up to fight a severance can be a very bad idea reputationally. – Garth”
————————————-

Agree w Garth wholeheartedly.

I gave 6 months notice that I was QUITTING, 6 years shy of retirement. Expecting nothing, I was stunned and surprised when they presented me with a cheque (2 wks x 18 yrs with the company).

#46 Lexie on 12.16.19 at 7:24 pm

#28 MSU

Mandatory Suck Up

#47 Westcdn on 12.16.19 at 7:27 pm

My father and I had a difficult relationship. It didn’t help I took my mother’s side after the divorce. I could not figure it out as they both loved each other. I guess my father being 3 weeks out and 1 week in was hard on my mother.

I was working with him when a log he was working on rolled. The claw on his saw ripped his leg. I dressed the wound and carried him to the truck. I drove slowly as I never saw him winch before. We got into his boat and I drove to Alert Bay for the doctor. He got multiple stiches and I got a few days off work as he didn’t get paid unless he was dropping trees.

Funny thing about the doctor was he was a fraud – hard to get good help in remote places. He was good at broken bones and stiches. He would read medical books and send people to Vancouver hospitals for things he couldn’t handle. People loved him.

#48 Sail away on 12.16.19 at 7:41 pm

#41 Long-Time Lurker on 12.16.19 at 7:05 pm

Well, I loaded up on the S&P 500. Let’s see if I got this Santa Claus rally thing right.

——————————————–

Really? Loading up when markets are at record levels? You do know they (the markets) fluctuate, right?

It’s a good time to rebalance and preferreds are still on sale, although not quite as attractive as earlier in the year. Equities, though? Now? Hmmm…

#49 akashic record on 12.16.19 at 7:42 pm

It’s not a matter of employer-employee loyalty but of avoiding the rep as a troublesome person to hire. Many industries and locales are small enough that this can injure you far more than a few more severance dollars can benefit. Be careful. – Garth

That could be a human rights violation case.

#50 DON on 12.16.19 at 7:49 pm

” ‘I’m worried’: The CRA could be set to crack down on Airbnb hosts”

https://ca.finance.yahoo.com/news/cra-could-crack-down-on-airbnb-hosts-105513243.html

“Canadians who rent out their homes are starting to come to grips with the reality that they can run, but not hide from the taxman.”

I’ll just leave this here. It was inevitable…the taxman always comes and hey they can see if you’ve been naughty of nice.

#51 Say my name on 12.16.19 at 7:52 pm

#9 Jack on 12.16.19 at 4:25 pm
I’m wondering the same about my pension with omers. I plan to move to the US soon under an e2 visa. Planning to move commuted value of pension to a LIRA (have most of the overage covered in available rrsp room) and after I have permanent resident status in the US transfer funds out. I know there is a withholding tax of 25 percent, but will I have to pay income taxes in the US or can I transfer it into a pension vehicle there?

—————–
Moving to the US? Queue the Defender of Mediocrity to emerge from his basement suite with some mediocre words of mediocrity from Mediocreville.

#52 Flop... on 12.16.19 at 7:56 pm

Dear C.R.A,

I’ve been a good boy this year.

Please don’t spank me…

M45BC

#53 will on 12.16.19 at 8:18 pm

Hey Susan, marry me!

#54 WUL on 12.16.19 at 8:18 pm

Garth,

Your statement about reputational harm to an employee that sues for severance does not match my 15 years experience in employment contract matters for both employers and employees. Now, I was in a larger centre, Calgary, in the ’80’s so single industry smaller locale might be different.

Almost uniformly, my clients were in a better place and fit within a year.

One reason is that the big courtroom wars on employment contracts and severance in Calgary was in the ’80’s downturn in the oil patch. After those money losing battles, big oilcos got wise and developed tables setting out reasonable severance. They paid for an hour long consult with a lawyer and one major sent about 30 to me. The table was fair in the sense that generally seeking more did not present an economic lawsuit.

Most of the clients returned to the patch.

If a lowball offer is made, suing can be the right thing to do, remunerative and cause no harm to a reputation.

WUL

#55 TurnerNation on 12.16.19 at 8:29 pm

Those wayward GM employees just got more competition. The Left just can’t get their narrative straight. Which is it – balloon the population (GTA set for another million peeps in decade) drive down labour costs and induce more housing/rental shortages, ‘let’s get more women into the trades’, or Muh Climate is Changing.
Let’s ask George Sorrows foundations.

https://www.citynews1130.com/2019/12/16/ontario-asks-ottawa-to-double-numbers-of-economic-immigrants/

TORONTO — Ontario is asking the federal government to double the number of economic immigrants to the province in order to deal with a skilled labour shortage.

Economic development minister Vic Fedeli says an expansion of the Ontario Immigrant Nominee Program would respond to the labour market needs of the province’s employers.

In the letter, Fedeli asks that the number of immigrants accepted under the program be increased from about 7,000 this year to 13,300 in two years.

#56 Trish Barker on 12.16.19 at 8:52 pm

Susan is a great saver/investor and perhaps if she isn’t forced to make a decision about commuting her pension immediately upon being let go from Job A, she might consider leaving the $$ with that bank and waiting to see what her next job might be.
Many companies, muni/provin/fed jobs, educational institutions, etc. allow new hires to port their pensions from their old jobs to the new one. Doing that allows the invested funds to grow (one hopes!) and allows the years of service at both jobs to be added together, often resulting in an earlier retirement, due to more total years of service and at a higher pension payout as a result.
Susan can continue to manage her own savings and have a reliable source of income in retirement that she doesn’t have to worry about. Just a thought…..

#57 Steven Rowlandson on 12.16.19 at 8:59 pm

“And, as you know, the banks want to dismantle their costly and elaborate web of physical locations, shedding front-line workers and forcing customers to find an ATM or go online.”

Like the Cheshire Cat the last thing you will see before the banks disappear is the smile. Banks can’t have bank runs if there are no banks and if there are no banks there might not be any bank accounts or cash. There will be just barter and the remnant of the coin supply as the basis for an economy… Welcome to the dark age 2.0

#58 mike from mtl on 12.16.19 at 9:03 pm

Physical bank branches are not going away any time soon, at least entirely.

Wire transfers outside of Canada and / or business names – in person. Foreign cash – in person. Account forms – in person. Large cash deposits / withdrawals – in person. Mortgage paperwork – in person. ‘Safe’ deposit box – in person.

The big six are many things, stupid is not one of them.

Of course there will still be banks in major centres, but the network will be vastly reduced. Already happening. – Garth

#59 Sideshow Rob on 12.16.19 at 9:04 pm

I don’t agree with meekly accepting the first severance offer when getting canned. A friend of mine was let go and was offered $30k at the exit meeting. She was a 10 year VP at a TSX listed company. She said maybe I should run this past my lawyer. The next offer was a day later and it was over $400k. As an aside she also got another job in her field pretty much instantly. She took a few weeks off to collect her thoughts and started working again. Just the threat of getting lawyered up resulted in a life changing increase in the companies offer. Plus zero reputational fallout.

Implausible. – Garth

#60 Nonplused on 12.16.19 at 9:10 pm

And they say the oil sands are bad.

https://oilprice.com/Energy/Energy-General/Emissions-Soar-As-Permian-Flaring-Frenzy-Breaks-New-Records.html

Flaring used to be a common practice where the target was oil but gas came out along with it. It was put to the stop in many places because it was such a waste, even before CO2 was considered a greenhouse gas. Great efforts were made to convert homes from oil heating to gas, and then more recently use the gas for electric generation. Simply burning the gas so you can get at the oil is a horrible idea.

And please note that this article does not include all of the diesel that must be expended to make a shale well in the first place. Shale oil is not better than oil sands. It might be a lot worse.

#61 crowdedelevatorfartz on 12.16.19 at 9:19 pm

@#37 Ponzie
“ATMs are loss leaders. They cost a lot to maintain and are a high security risk.
Banks want the customers to come into the branch, so they can sell them products that make them lots of money.
[email protected] is there to fleece you.”
+++++

Fair enough but I rarely use ATM’s now and I can count the amount of times I’ve stood in line for a “teller” inthe last year on the fingers of one hand.
Online banking.
And when I get those annoying telephone calls at suppertime from [email protected]……I hang up.

#62 Stone on 12.16.19 at 9:21 pm

#34 Mike on 12.16.19 at 6:12 pm
“Lawyering up to fight a severance can be a very bad idea reputationally. – Garth”

What a load. Employers aren’t loyal to employees and vice versa anymore Garth. I know of two individuals who received severance after MANY years of faithful service (29 & 19 years respectively).

As gratitude, their employers tried to screw them and everyone else that was laid off and not by a little either, but by hundreds of thousands of dollars. They were both told the same by two different companies “Sign here or you get nothing”.

It’s not a matter of employer-employee loyalty but of avoiding the rep as a troublesome person to hire. Many industries and locales are small enough that this can injure you far more than a few more severance dollars can benefit. Be careful. – Garth

———

Well Garth, there is another option. The option that exists when you save and invest, live within your means, and become financially independent. Enough so that going back to work for some heartless, rapacious employer that considers employees disposable becomes optional. In those cases, being severed becomes free money and if lawyering up gets you your due, so be it. Sometimes growing a pair and standing up for oneself can be empowering.

There is always more than one point of view. I prefer the one where you are strong and stand your ground, not the one where you’re weak and a pushover only accepting scraps. After all, we all need to live with ourselves, no?

I’ll walk tall, thank you very much.

Real men are clever. – Garth

#63 crowdedelevatorfartz on 12.16.19 at 9:28 pm

@#60 Nonplused.
“Shale oil is not better than oil sands. It might be a lot worse.”
+++++

Understatement of the decade.

Fracking uses sand, water and hydraulic fluid pumped deep, deep underground to split, crack and force oil and gas from the shale rock.
We are sucking good, drinkable water into pumps that pressurize to unbelievable pressures to get….fuel.

https://www.greenpeace.org/usa/global-warming/issues/fracking/environmental-impacts-water/

All while polluting our ground water for decades if not hundreds of years….
Never mind the Man made earthquakes they create…

https://www.cbc.ca/news/canada/british-columbia/fracking-earthquakes-bc-1.4957379

Perhaps why govts with testicles have banned it…

https://www.theguardian.com/environment/2016/jun/24/germany-bans-fracking-after-years-of-dispute

https://www.theguardian.com/environment/2019/nov/02/fracking-banned-in-uk-as-government-makes-major-u-turn

Fracking.
A crime against the environment that will come back to bite us all.

#64 Nonplused on 12.16.19 at 9:33 pm

#51 Sideshow Rob

“Implausible. – Garth”

I agree with Garth your story sounds implausible. The first thing any major corporation does before they do layoffs is bring in their HR lawyers (yes, they do exist). They offer just enough money to make a lawsuit not worth it for anybody. And there is precedent.

So for example, in Canada three weeks to a month per year of service to a maximum of 10 years (so 8-10 months salary) is pretty typical for white collar workers. (No, that wasn’t racist, you triggered woke folks, it’s a reference to the color of the shirt.) A pro-rated bonus is also often included. If you have in the money stock options they will be cashed out. So you can get a pretty nice send off depending on how things look (it’s happened to me, and the offer was good enough that I didn’t lawyer up).

Lawyering up seldom works because major companies work with the lawyers every day. They know how much is the minimum.

When layoffs are being executed, always volunteer to go with the first round if you have other prospects. The packages get worse with time not better. The packages have a large impact on an already faltering company. The longer it goes on, the less money they have available to pay. As with a bubble, be the first to cash out if you can.

And as Garth eluded to, defer the payment to the following year if you can. You have to accept your current annual base salary in the year that it happens, but if you get laid off late in the year it makes a lot of sense to delay the second payment until the new year for tax reasons. Defer as much as you can. But you won’t be able to defer it all.

#65 Flop... on 12.16.19 at 9:34 pm

Vancouver is doomed.

The 5 million dollar chandelier is broken already.

Now we’ll never see the light…

M45BC

#66 No yabba dabba doo on 12.16.19 at 9:45 pm

Canadian dairy and agriculture biggest losers of new NAFTA: Report | Financial Post

U.S. President Donald Trump’s America First strategy has worked like a charm as the North American Free Trade Agreement has come at the expense of its trading partners Canada and Mexico, according to a new report.

C.D. Howe Institute notes that the U.S. will be the biggest beneficiary of the revamped  tripartite North American deal, with both Canada and Mexico expected to lose revenue, exports and investments and economic welfare of citizens.

Canada’s economy could shrink by 0.4 per cent and economic welfare will decline by more than US$10 billion.

“While the net protectionist features of the CUSMA (Canada, U.S. and Mexico Agreement), result in overall negative economic welfare impacts for all parties, the United States experiences a sufficient increase in prices to generate a modest increase in the value of its GDP at post-shock prices, despite the decline in real GDP of -0.096 percent,” authors Dan Ciuriak, Ali Dadkhah and Jingliang Xiao, wrote in a report published Thursday.

Mexico stands to lose 0.79 per cent in real GDP and US$14.9 billion in economic welfare.

“…Key measures of the agreement generate net benefits for the U.S. at Canada’s expense. These include more stringent rules of origin that must be met for products to qualify for duty-free market access under the CUSMA, increased intellectual property protection, and the introduction of new rules on cross-border data flows and data localization,” according to the report.

In terms of sectoral impacts, Canada’s dairy sector will be hardest hit, “where shipments decline both due to the ceding of market share to U.S. dairy imports and to declining domestic demand from the macroeconomic consequences of the agreement.”

This translates to a decline in total shipments by 2.64 per cent, or US$771 million. It’s part of a wider decline in total shipments in the agri-food sector by 0.57 per cent, or US$1.27 billion.

Manufacturing sees the opposite result with a slender increase in total shipments by 0.02 per cent. Industrial materials exports, being the target of U.S. reindustrialization, will lose ground, but due to rule of origin changes, more than make up for it in the domestic market. Total shipments for industrial materials will actually rise by 1.02 per cent or US$2.43 billion.

The Canadian automotive sector will see a retreat of 0.63 per cent or US$781 million. This decline is due to the loss of market share in the U.S. with a simultaneous increase in imports south of the border.

Canadian services will also see a decrease of 0.54 per cent “due to the negative income effects of the agreement and the consequent decline in general domestic demand.”

The Mexican government has signed off on the new NAFTA deal, while Canada and U.S. are both working towards ratification.

Despite the challenges, the new agreement is a better alternative to NAFTA lapsing, but only marginally so, with the U.S. essentially indifferent to either outcome, the CD Howe analysts concluded. Under a NAFTA lapse the real GDP loss in the States would have been the same and they would have only suffered a further US$5 billion loss in economic welfare.

“From the standpoint of bargaining, this comparison suggests that Canada and Mexico did not roll over, but pushed as hard as the traffic would bear,” reads the report.

But the much larger impact of NAFTA would come from an increase in uncertainty for investment in Canada and Mexico aimed at serving the U.S. market.

“The major caveat to these results is the extent to which the longer-run investment climate in Canada (and Mexico) has been damaged by the weakening of the North American Free Trade Agreement (NAFTA) institutional framework through the introduction of a sunset clause; the elimination of investor state dispute settlement; the grudging way the United States accepted retention of the NAFTA Chapter 19 binational panel review of trade remedy cases; and, perhaps most importantly, the failure of the new agreement to eliminate the application of US section 232 national security tariffs on imports from its North American partners,” the analysts concluded.

#67 Lead Paint on 12.16.19 at 9:47 pm

#37 Ponzius Pilatus on 12.16.19 at 6:36 pm

I one had a cheque written from the corporation I own to me personally for a large amount (after many years of hard work!).

The ATM rejected it as it was over its limit – what a sham. So I had to see [email protected] She had the nerve to ask me, straight faced , what my plans were for the money. I’m sure it’s part of their training to be rude and invasive in a ‘I want to help you, I care’ guise which is hard to call out.

Sure enough, unsolicited she told me about their investment services.

I remember pumping gas for work at Esso in the 90s. They showed me a video on how to upsell. You offer to check their oil as a gesture of concern and kindness, and you end up selling a truck load of oil.

Corporations training and pressuring people to emotionally manipulate their fellow human… no wonder so many are jaded!

#68 Shawn Allen on 12.16.19 at 9:57 pm

To Commute or not?

The pension commutation question has to consider individual circumstances.

Certainly health and family history of longevity.

Whether there is a spouse or not. When the pension (or at least half or two thirds) will end only upon the death of the last surviving spouse that could means actuarially a lot of years. The chances on a single spouse being dead unexpectedly early or much higher than the chance of it happening to both.

Ability to invest on own: A person who never bothered to save much outside the pension and has no investment experience is a bad candidate to commute.

If the pension sponsor is on shaky ground financially, then of course that indicates a take the money and run situation. A Canadian bank with a pension fund that is relatively fully funded does not sound risky.

#69 Chris from GTA on 12.16.19 at 10:00 pm

Hi Garth,

Given the widening debt gap between US and Canada, coupled with potential problems on the horizon with CDN layoffs, would it be wise to convert some CDN to USD in order to maintain US ETF purchasing power?

#70 BoDiddley on 12.16.19 at 10:06 pm

HA! Wait until January’s unemployment figures get released. It’s going to be a BLOODBATH.

FWIW, I have friends who work in the transportation industry, one as a conductor for CN rail, the others work in trucking. Rail traffic is tanking all across Canada. The strike certainly didn’t help those guys either. Both CN and CP have been storing cars away in yards. All kinds of houses are suddenly up for sale in my neighbourhood, which I thought was rather bizarre.

Meanwhile, another ‘green energy’ wind manufacturing plant is shutting down come January, and a local marijuana production facility is also on the verge of receivership, needing a $5 MILLION emergency loan just to make it to the end of this year. Strangely, even the car lots — new and used — appear emptier lately as well. The business just isn’t there.

And let’s not forget that Hamilton’s LRT project was suddenly cancelled today as well — along with the 5000 jobs it would have produced.

Party on, Garth!

#71 Sail Away on 12.16.19 at 10:06 pm

Hey, here’s a tip to all the ‘screw your employer’ shlubs:

If you combine extortion money with also screwing your landlord to the fullest extent of your ‘rights’, you may be able to get through life without ever being productive!

Just guessing this isn’t news to a surprisingly large portion of this blog.

#72 Shawn Allen on 12.16.19 at 10:17 pm

We should try not to confuse wealth with money or money with cash. These are three different things.

Most wealth, although measured in dollars, is not in the form of money. And, most money is certainly not in the form of paper cash.

#73 60% club on 12.16.19 at 10:37 pm

Congrats – I’ve been doing 55% of net for the past 5 years. 2020 will be my first 60% year. 2019 was also the year I hit my first million at 42 yrs old. For those wondering how (if anyone cares) the 60% club is possible, I have a decent income of $94k, living downtown with no car, walk to work, and only 38k on the mortgage i can save a massive amount every year and still live well. Rented a room for 15 years after university allowed huge savings. Should have $4MM to $7MM by 65.

#74 Al on 12.16.19 at 10:38 pm

” I want to know, you know, just like all those piles of waste on a Tesla, what are the collateral fossil fuel requirements to do that? And I’m not trying to be difficult”. Yes you are Art. If he actually had any genuine interest he could easily find that out. Ppl have already considered and calculated that. Their conclusion,guess what? Gasoline still sucks.

#75 Lillooet, BC on 12.16.19 at 10:38 pm

“You save two-thirds of your salary? That’s deserving of an Order of Canada, or at least a life membership (and your own parking spot) at Costco.”

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

Saving so hard?

I save 100% of salary because I have a side job.

#76 Matsebula on 12.16.19 at 10:44 pm

Garth, I’ve had this question before too. Can you (1) explain what a copycat annuity is, and (2) provide an opinion on whether it is worth setting up or not?

This is something I am semi-keen on understanding as I think ahead to retirement.

#77 Shirl Clarts on 12.16.19 at 10:57 pm

#38 Don Guillermo on 12.16.19 at 6:40 pm

****************************************
55.5% of Canadians voted for Lib/NDP/Green and their tax & spend job killing policies. It means exactly that – they will get what they deserve.

^^^^

The Liberals lost the popular vote to the Conservatives, which marks only the second time in Canadian history that a governing party formed government after receiving less than 35 per cent of the national popular vote.

The Bloc made a huge come back, the NDP were crushed, and the Greens barely moved the needle.

#78 Ponzius Pilatus on 12.16.19 at 11:35 pm

#61 crowdedelevatorfartz on 12.16.19 at 9:19 pm
@#37 Ponzie
“ATMs are loss leaders. They cost a lot to maintain and are a high security risk.
Banks want the customers to come into the branch, so they can sell them products that make them lots of money.
[email protected] is there to fleece you.”
+++++

Fair enough but I rarely use ATM’s now and I can count the amount of times I’ve stood in line for a “teller” inthe last year on the fingers of one hand.
Online banking.
And when I get those annoying telephone calls at suppertime from [email protected]……I hang up.
—————
No diff.
Online transactions are loss leaders, too.
Every one line transaction costs the bank 1.75 in Interac fees.
Go beyond your minimum required deposit and see what happens.
They pull your account in seconds.

#79 Ponzius Pilatus on 12.16.19 at 11:45 pm

#39 Sail away on 12.16.19 at 6:57 pm
#35 Ponzius Pilatus on 12.16.19 at 6:19 pm

You’re the best! I wish all employers could be like you. Just knowing you over this blog makes me strive to be a better person.

In which part of Canada is your plantation?

————————————-
Ponzie, Ponz, P… that’s sweet. Thanks, bro.

Join me on the plantation for the holidays? A sleighride, a fire, a little eggnog…. Maybe some carols in the snow?
————
I expected better from you.
One of your plantations in Alabama would be nicer.
Like to hear the bullwhips cracking.

#80 SnarterSquirrel on 12.16.19 at 11:51 pm

#31 Sailaway

It’s not extortion, it’s knowing that you live in a country with laws. If a company you have worked for for x years decides to unceremoniously turf you due to cost cutting with a bare minimum severance there are laws to protect that employee. Knowing what those laws are is an important rudimentary aspect to negotiating appropriate severance terms. You can be assured the corporation’s lawyers are well versed in employment law, it’s not much of a negotiation if the terminated employee isn’t equally aware of their rights. If the company firing you actually gives a proper severance under the laws of Canada then no need to ask for more. But every terminated employee should be made aware of the law and their rights.

As for Garth’s reputational harm concern, it is a legitimate thing to consider. It’s not the only factor to consider. For me, the person I reported to in the company also got turfed due to the same cost cutting campaign and I’m at a different company reporting to my former boss again. Many people were let go and the only entity to suffer reputational harm was the company for not following Canadian employment law practices.

If you work for a big enough company and keep your mouth shut while you go through legal dealings on severance, chances are the people in the company won’t even know you sued. Ergo no reputational harm done. For extra measure when the company asks that you keep the terms of your severance confidential get your lawyer to include a confidentiality clause on them as well. Helps protect your reputation.

#81 will on 12.16.19 at 11:52 pm

my dog Garth, that is one beautiful bank you bought. i saved the image.

#82 Just snootin' on 12.17.19 at 3:46 am

#8 crowdedelevatorfartz

This blog is bright red hydrant of information. Fun to sniff on my walks. Take a little, leave a little. Thx.

#83 Timis on 12.17.19 at 3:58 am

Susan – in case you decide to commute please be aware that federally regulated plans should be transferred to a LRSP and not a LIRA. This will give you more flexibility as you can convert(unlock) up to half of the account balance to a regular RRSP at age 55. This can be done via a 2 step process – create a RLIF then transfer to an RRSP within 60 days. Please do more research before you act on this. Do not let any bank or brokerage tell you LIRA and LRSP are the same – only a few offer both. RRSP withdrawals will be taxed accordingly but you can
decide when and how you want to do it.

#84 Space Cowboy on 12.17.19 at 5:27 am

DELETED & BANNED
Jenny Wang, Space Cowboy etc. – You are a tormented, ugly, wasted person, utterly unwelcome here. Get help. – Garth

#85 Another Deckchair on 12.17.19 at 5:32 am

The one time I got laid off from a small company, we (the laid off ones) got to:

a) console the owner, he was distraught at having failed us;

b) look for work, with the present company providing references, no problem;

c) keep our desks, keys, etc, for the duration of the severance.

Me? After saying “its’ ok… we all knew you were doing your best”, I started phoning around; that afternoon I got interviews scheduled, and was working again very shortly afterwards.

My ole’ mum told me as a teenager “you make your own luck, now go out there and make yours”.

The small company? It had to close shortly afterwards, so us “leaders in layoff” helped where we could with our old colleagues finding new work. There were no hard feelings.

FWIW

#86 Sail Away on 12.17.19 at 7:02 am

#78 Ponzius Pilatus on 12.16.19 at 11:45 pm
#39 Sail away on 12.16.19 at 6:57 pm

——————————–

I expected better from you.
One of your plantations in Alabama would be nicer.
Like to hear the bullwhips cracking.

——————————

Ponzie, yesterday you suggested I was lying; today that I’m a slave owner. These aren’t things adults should do lightly under a pseudonym on a blog or elsewhere. What would Bruno Kreisky think of such ad hominem slurs?

#87 Jenny Wang on 12.17.19 at 7:20 am

DELETED

#88 Felix on 12.17.19 at 7:54 am

Hmmm…….today’s pic shows a useless canine attempting to undermine the integrity of the financial system…

Yeah, great pets, humans.

Not.

#89 Tom on 12.17.19 at 7:55 am

“#17 Maigf Farded Shud-Idumphur on 12.16.19 at 5:02 pm”

You got trolled by a Zoomer kid. Read the name. It sounds like my girlfriend farted, should I dump her? Meme.

Will the next generation of females lack a farting feature? How nice it would be if they could not fart and poop and have digestive systems/sarc.

#90 Tater on 12.17.19 at 7:57 am

#71 Sail Away on 12.16.19 at 10:06 pm
Hey, here’s a tip to all the ‘screw your employer’ shlubs:

If you combine extortion money with also screwing your landlord to the fullest extent of your ‘rights’, you may be able to get through life without ever being productive!

Just guessing this isn’t news to a surprisingly large portion of this blog.
————————————————

I’m sure you make it a habit to give up contractual rights all the time…

#91 TurnerNation on 12.17.19 at 8:06 am

For years now I’ve stated a time will come whereby armed government men destroy perfectly good food stuffs while desperately hungry people look on. Maybe the WHO says there is a virus, or maybe the correct ‘carbon permit’ was not obtained beforehand. This is communism. Indeed their paid scribes are already soft selling us on this. Now you see what C.C. Is all about?

https://www.theglobeandmail.com/opinion/article-the-climate-crisis-is-like-a-world-war-so-lets-talk-about-rationing

I also said that government men will turf people out of perfectly good dwellings – as wailing families plead.
It’s happening, a family send to the street over maybe a failed ‘energy audit’ , or paperwork and imaginary numbers in this case. This is Kanada:

https://www.cbc.ca/news/canada/edmonton/fort-mcmurray-bankruptcy-condo-insurance-1.5393448

#92 crowdedelevatorfartz on 12.17.19 at 8:11 am

@#67 Lead paint
“Sure enough, unsolicited she told me about their investment services.”
++++

I had the same experience a few year back.
ATM down.
Had to go to the Teller for the deposit.
I had just sold the house.
Had a crap load of cash in my account. Was renting.
Was going to transfer it all into a private investment account with an experienced advisor.
Not the bozo’s at the bank.
The teller’s eyes popped open at the “balance”.
“Sir you shouldnt have THIS much money in a regular bank account! This is a lot of money”
( And they call the machines “automated tellers…..)

Big mistake.
Even the other tellers stopped working for a minute and looked at the pimple faced kid lecturing me…
“We have advisors that can…..”
I decided to have some fun.
‘Cut the sales pitch kid, I’m in a hurry. That money is nothing compared to what I have invested. Thats play money. I need to go…..”
He deposited my cheque….and I left.

#93 Dharma Bum on 12.17.19 at 8:14 am

Back in 2004, I lawyered up and accused my employer of what essentially amounted to “wrongful dismissal” (after months of acrimonious conduct on their part resulting from employer stress due to faltering economic conditions, they blamed me for the corporation’s maladies and changed my job title with a 50% salary cut), and went through the legal process (officially filed a statement of claim against them).

After the mediation session finally took place, they settled and I got a nice 1 year severance package (after 8 years of service).

Not too shabby.

I then went to work for another 13 years at a different company.

No reputation consequences. What’s right is right.
Some employers can be real pricks.

The 6 months off with pay was stellar, by the way.

#94 Remembrancer on 12.17.19 at 8:17 am

#66 No yabba dabba doo on 12.16.19 at 9:45 pm
In terms of sectoral impacts, Canada’s dairy sector will be hardest hit, “where shipments decline both due to the ceding of market share to U.S. dairy imports and to declining domestic demand from the macroeconomic consequences of the agreement.”
————————————————–
Projection ignores that you can chose to not buy their drug infested milk and crappy tasting yellow cheese…

#95 crowdedelevatorfartz on 12.17.19 at 8:21 am

@#78 Ponzie Prattle
“Online transactions are loss leaders, too.
Every one line transaction costs the bank 1.75 in Interac fees.”
++++
Totally disagree.

When I pay a bill on line or transfer money I dont deal with a human.
The bank saves money not hiring staff to physically process the transaction.
I do all the work.
And they make money holding my cash and loaning it to others…
I save time( and money) not travelling to a bank to stand in line, talk to a teller, process my bills, blah blah blah.
As for the “loss leader” aspect to on-line banking…pffft.
As soon as I’m done moving money around I log off. Their advertisements and sales pitches are ignored/deleted.

#96 crowdedelevatorfartz on 12.17.19 at 8:26 am

@#86 Sail Away

Ponzie’s just mad at the world.
No christmas dinner invites yet….
No presents under the tree…
Grumpy von Stumpy is his name….

#97 Jeff on 12.17.19 at 8:34 am

If Canadian banks are so great let’s open up competition and let Wells Fargo and Bank of America and any other bank from beyond to open in Canada.
The big six would go the way of Eatons & Zellers in no time.

Do you recall what happened to some big US banks in 2008? You want that? – Garth

#98 JM Keynes on 12.17.19 at 8:50 am

#97 Jeff on 12.17.19 at 8:34 am
“If Canadian banks are so great let’s open up competition and let Wells Fargo and Bank of America and any other bank from beyond to open in Canada.
The big six would go the way of Eatons & Zellers in no time.”

“Do you recall what happened to some big US banks in 2008? You want that? – Garth”

To add to the sagacious words of our fearless leader, your US banks failed in record numbers during the Great Depression whilst Canadians saw ZERO major bank failures.

https://www.aei.org/carpe-diem/great-depressionnot-a-single-canadian-bank-failed/

#99 In Garth We Trust on 12.17.19 at 8:58 am

#81 will on 12.16.19 at 11:52 pm

“my dog Garth, that is one beautiful bank you bought. i saved the image.”

Kudos to that! Well done Captain Garth. How many financial bloggers own a solid and stately bank? One more reason why Captain Garth stands out as a lone voice crying out in the financial wilderness of Canada…

#100 James on 12.17.19 at 9:07 am

#91 TurnerNation on 12.17.19 at 8:06 am

For years now I’ve stated a time will come whereby armed government men destroy perfectly good food stuffs while desperately hungry people look on. Maybe the WHO says there is a virus, or maybe the correct ‘carbon permit’ was not obtained beforehand. This is communism. Indeed their paid scribes are already soft selling us on this. Now you see what C.C. Is all about?

https://www.theglobeandmail.com/opinion/article-the-climate-crisis-is-like-a-world-war-so-lets-talk-about-rationing

I also said that government men will turf people out of perfectly good dwellings – as wailing families plead.
It’s happening, a family send to the street over maybe a failed ‘energy audit’ , or paperwork and imaginary numbers in this case. This is Kanada:

https://www.cbc.ca/news/canada/edmonton/fort-mcmurray-bankruptcy-condo-insurance-1.5393448
___________________________________________
The rising rate for Condo owners are going to be a death knell. This idiots that thought the condo idea was a low cost alternative to home ownership are now realizing how expensive condo insurance is due to the high risks of the buildings. Insurance companies have them by the short and curly s knowing that they have no alternative. So go ahead buy a condo and watch your assets drain away.

#101 oh bouy on 12.17.19 at 9:22 am

@#86 Sail Away on 12.17.19 at 7:02 am
#78 Ponzius Pilatus on 12.16.19 at 11:45 pm
#39 Sail away on 12.16.19 at 6:57 pm

——————————–

I expected better from you.
One of your plantations in Alabama would be nicer.
Like to hear the bullwhips cracking.

——————————

Ponzie, yesterday you suggested I was lying; today that I’m a slave owner. These aren’t things adults should do lightly under a pseudonym on a blog or elsewhere. What would Bruno Kreisky think of such ad hominem slurs?
_______________________________

maybe not a slave owner but you definitely come off as a bit of an ahole on here.

#102 James on 12.17.19 at 9:22 am

One of the main reasons that condo insurance rates are off the charts is that the pool of insurance companies willing to take risks is narrowing. My buddy in the insurance industry says off the record that he estimates in the next five to ten years condo insurance will be not affordable for the average person and that this may precipitate the flooding of the market as owners have to bail. If you have a $250,000 deductible and you have $190,000 of damage its coming out of your pocket. I didn’t realize until my buddy told me how much damage is done when there is an issue in a building i.e. fire and flood from broken pipes. The problem is your sharing walls, ceilings and floors. When your neighbour has a flood or a fire so do you. Who can afford that as a deductible? Not your ma & pop who have downsized and retired. They will be wiped out financially!

https://www.huffingtonpost.ca/entry/condo-insurance-canada_ca_5de813a3e4b0913e6f8a235c

#103 Mississauga Mel on 12.17.19 at 9:24 am

Season’s greetings to all blog dogs. I am proposing a blog dog get together in my lovely city of Mississauga over the holidays. Perhaps reserve a table at a Texas Longhorn off the QEW for a night of blog dog chatter, a meal and some jolly good fun. If anyone in the GTA is interested let it be known and maybe we can set something up.

#104 Jimmy the Dude on 12.17.19 at 9:45 am

DELETED

#105 Mississauga Mel on 12.17.19 at 9:55 am

#102 James on 12.17.19 at 9:22 am

Thanks for the great heads up James! I have been going to see condos with one of my children ( the condo is for the child not me) in downtown Toronto in the past few weeks and actually had two offers put on, over asking on both, only to be outbid. I had not even considered the insurance problem. You are making me do a serious double think on it. I owe you a dinner at my proposed blog dog get together in Mississauga…

#106 Sail Away on 12.17.19 at 10:00 am

#96 crowdedelevatorfartz on 12.17.19 at 8:26 am
@#86 Sail Away

Ponzie’s just mad at the world.
No christmas dinner invites yet….
No presents under the tree…
Grumpy von Stumpy is his name….

————————-

Ponze was invited/
To my decorated home/
Why no acceptance?

#107 Remembrancer on 12.17.19 at 10:13 am

#102 James on 12.17.19 at 9:22 am

$250K deductible?? Sure that’s not for Condo Corporation insurance instead of individual units?

#108 Sail Away on 12.17.19 at 10:15 am

Re: layoffs

In the absence of any other contract in Canada, employees are covered by the federal or provincial labour codes. No employer contract can legally reduce employee rights below the level laid out in the codes.

This is the contract that an employee and employer enter into.

Sometimes employees have to be laid off. The codes identify notice and severance.

If any business violates the codes, that’s illegal and they will be held liable. No lawyering up is necessary.

On the other hand, if an employee with an elevated sense of entitlement decides to violate their side of the contract and sue for more, they are encouraged by others, as we’ve seen on this blog. Nobody should be proud about breaking a contract and levering more money. It’s gold-digging, despicable behaviour.

#109 Blog Bunny on 12.17.19 at 10:21 am

Garth,

Is there an advantage to hold corporate class ETFs (Horizon just got restructured) vs regular ETFs taxwise in non registered accounts ?

#110 Mattl on 12.17.19 at 10:23 am

#41 Long-Time Lurker on 12.16.19 at 7:05 pm
Well, I loaded up on the S&P 500. Let’s see if I got this Santa Claus rally thing right.

So, how well are robo-advisors going to do in a financial crisis?

—————————————————————-

The ROBO part of robo advisor is basically an algorithm that helps place you in the appropriate portfolio. Rather then sitting with your advisor at initial sign of, you can on board online with a few clicks.

I’m not arguing this is a better service then traditional advisor models but there is this idea out there that the robo’s are completely machine driven. They are most definitely not – humans choose the funds, re-balancing occurs periodically and is human drive….for the most part these are just balanced ports with online self service tools.

What they don’t do well today is offer a level of personalized service, particularly tax planning. But they are a great spot for folks building their first 500K, that they can walk over to a firm like Garth’s when investing gets more complex.

#111 whiplash on 12.17.19 at 10:26 am

Canadian Commercial Bank and Northlands Bank were shut down by the federal government in September 1985. These Alberta based banks had big loans to the energy and real estate sector that led to the collapse of both banks.

The feds appointed Willard Estey of the Supreme Court to investigate the reason these banks failed that was on Sept.29/85

Grim times in Alberta!!

#112 Sail Away on 12.17.19 at 10:34 am

#101 oh bouy on 12.17.19 at 9:22 am
@#86 Sail Away on 12.17.19

——————————

Ponzie, yesterday you suggested I was lying; today that I’m a slave owner. These aren’t things adults should do lightly under a pseudonym on a blog or elsewhere. What would Bruno Kreisky think of such ad hominem slurs?
_______________________________

maybe not a slave owner but you definitely come off as a bit of an ahole on here.

————————————
lol… don’t we all, b?

#113 Quintelian on 12.17.19 at 10:54 am

“The finance minister says it’s all okay.”

In fact, it is.

The layoffs in the financial sector is representative of a modern thriving economy which makes use of the latest technology, thereby freeing human resources for higher value functions.

#114 Barb on 12.17.19 at 11:18 am

Well, it appears our Dear Garth won’t let his name stand for the Conservative leadership, so who’s your choice…?

My choice: Rona Ambrose

#115 Ponzius Pilatus on 12.17.19 at 11:24 am

#95 crowdedelevatorfartz on 12.17.19 at 8:21 am
@#78 Ponzie Prattle
“Online transactions are loss leaders, too.
Every one line transaction costs the bank 1.75 in Interac fees.”
++++
Totally disagree.

When I pay a bill on line or transfer money I dont deal with a human.
The bank saves money not hiring staff to physically process the transaction.
I do all the work.
And they make money holding my cash and loaning it to others…
I save time( and money) not travelling to a bank to stand in line, talk to a teller, process my bills, blah blah blah.
As for the “loss leader” aspect to on-line banking…pffft.
As soon as I’m done moving money around.
——————-
I worked 30 years for a bank.
How many years did you?

#116 Flop... on 12.17.19 at 11:37 am

China’s economy took off the year I finished high school.

Coincidence?

I think not…

M45BC

“Visualizing 30 Years of China’s Unstoppable Economic Growth.

President Trump constantly warns about China as a threat to the world. China takes American jobs, adds to the national trade deficit and steals intellectual property. But how should we understand the rapid rise of China on the global economic stage? Our visualization puts things in perspective.

China’s economy has grown significantly faster than every measure on our visual. It’s grown 14.12 times in size since 1989.

The Euro area and other high income countries, including the U.S., have grown much slower than China. The U.S. economy is only 2.09 times bigger than it was in 1989.

The value of the Dow Jones Industrial Average ebbs and flows with recessions, recently reaching an all-time high before contracting a little to 4.45 times the size it was 30 years ago.

No matter the economic climate, U.S. debt levels continue to grow, almost quadrupling in inflation-adjusted dollars over the last 30 years.

We arrived at the numbers behind our visual by pulling from a few different sources. First, we grabbed GDP growth figures from the World Bank and returns from the Dow Jones Industrial Average from macrotrends. We also used the World Bank to determine high and low income countries. We found U.S. debt numbers from The Balance. We adjusted all of these figures to reflect 2019 dollars, allowing us to create a true apples-to-apples comparison across time. This lets us measure growth rates in real terms over the last 30 years.

China’s economy started to grow in 1989 and hasn’t let up, double in size roughly every 8 to 10 years. China’s growth rate surpassed every other measure we found, from the Dow Jones Industrial Average, to rich and poor countries, and even U.S. debt. It’s more than 14 times as big as it was in 1989.

Past performance is no guarantee of future results, as everyone knows. President Trump is famous for his trade war, even if a deal seems like it could happen anytime now. Even if nothing happens and tariffs continue to escalate, multinational companies are still dropping buckets of money to invest in China. It’s an open question how long it will take China to double yet again given these challenges, especially given the recent headlines about slowing down.

Another interesting storyline in our visual is how China’s rise has been steady and one-directional, but the Dow Jones Industrial Average and American debt levels have ebbed and flowed over the decades. The stock market obviously contracts during recessions before recovering, but it’s only 4.45 times as big as it was 30 years ago. U.S. national debt, on the other hand, tends to grow no matter what the economy is doing. In fact, there’s been a U.S. national debt boom over the last few years even with a strong economy.

It’s important to keep in mind how these figures are all relative, and there are lots of other ways to measure and compare wealth between countries. For example, the debt-to-GDP ratioshows how large debt levels aren’t necessarily a bad thing if a country’s economy is likewise enormous. It’s also critical to understand how the U.S. is still the biggest economy, by a lot. China is able to post such impressive growth numbers because it started as an agrarian economy in 1989, and then transformed into a manufacturing powerhouse.”

https://howmuch.net/articles/chinas-economic-growth-perspective

#117 Ponzius Pilatus on 12.17.19 at 12:00 pm

#115
China has now more railway tracks than the rest of the world combined. Most of them bullet trains.
They understand that mass public transit is the way of the future.
As for Canada, we will be left on the side of the road stuck in our F-150s.

#118 Mattl on 12.17.19 at 12:09 pm

#108 Sail Away on 12.17.19 at 10:15 am
Re: layoffs

In the absence of any other contract in Canada, employees are covered by the federal or provincial labour codes. No employer contract can legally reduce employee rights below the level laid out in the codes.

This is the contract that an employee and employer enter into.

Sometimes employees have to be laid off. The codes identify notice and severance.

If any business violates the codes, that’s illegal and they will be held liable. No lawyering up is necessary.

On the other hand, if an employee with an elevated sense of entitlement decides to violate their side of the contract and sue for more, they are encouraged by others, as we’ve seen on this blog. Nobody should be proud about breaking a contract and levering more money. It’s gold-digging, despicable behaviour.

———————————————————–

Labour laws provide guidance on minimum responsibilities regarding severance payouts. Of course they can’t cover for all circumstances, and in that case litigation is some times required, and provides further guidance on what is reasonable.

For example, if you headhunt a sales person with 25 years experience, move her across the country, there is a certain employment expectation. Your can’t just lay her off without cause 4 weeks later and expect to only owe 2 weeks pay. It is not breaking a contract to litigate for what is reasonably owed – in this case, the previous employment history is relevant to the new severance.

I take from your posts that are a nightmare to work for. Likely low skill / wage employees with lots of turnover, and I take it from your tone you have been sued by former employees.

Thankfully most Canadian employers – including all the ones I’ve worked for – look for a reasonable settlement that won’t lead to a day in court; in general the principle is to provide severance that allows the employee to find suitable/comparable employment in the time that the severance covers. Seems fair to me.

If they don’t, they should expect their employee’s to use their rights to get what is reasonably owed.

#119 blog dog ford on 12.17.19 at 12:13 pm

1 in 10 torontonian now a gig economy worker

https://www.thestar.com/business/tech_news/2019/12/16/one-in-10-toronto-workers-is-now-a-gig-economy-worker-statcan-says.html

#120 Stan Brooks for PM on 12.17.19 at 12:14 pm

#114 Barb on 12.17.19 at 11:18 am

“Well, it appears our Dear Garth won’t let his name stand for the Conservative leadership, so who’s your choice…?”

My choice: The one and only Stan Brooks!! Please Stan, through your hat in the ring and lead this nation back to sanity!

#121 TurnerNation on 12.17.19 at 12:33 pm

Hey are bootlickers like “Shawn” enjoying all that stuff our taxes bring? Like…transit that’s at least better than 3rd world places?
How’s that working out. No Toronto relief subway line..since 1986 talks. Maybe in time for my retirement.

It seems to me like the graft to favored government consultants was not high enough.

“Ontario cancels Hamilton light rail project in what mayor calls a ‘betrayal’ A light-rail project in Hamilton was cancelled on Monday after the provincial government said the project would cost more than five times its original price tag, in a decision critics called a “betrayal” of the city.”

#122 Phylis on 12.17.19 at 12:48 pm

#92 crowdedelevatorfartz on 12.17.19 at 8:11 am i had a similar experience too, although your bank must be lazy. After the pitch at the counter i started receiving phone calls from the branch. They wanted to arrange an appointment with me. Somehow this practice seems to be a breach of my privacy, but i guess they have their foot in my door.

#123 Sold Out on 12.17.19 at 12:56 pm

Re: Strata Corp insurance deductibles

If your strata corp has a high deductible, it means that if an owner’s property is damaged by a common property leak – i.e. roof, plumbing , sewer – and the damage doesn’t exceed the deductible, the property owner is on the hook for the costs to repair their unit. The only exception would be if the strata corp was proven negligent in maintaining common property, causing the leak.

If damage can be proved to be caused by an individual unit owner – i.e. overflowing bathtub, leaking supply tube – the repairs will be charged back to that owner.

The owner’s protection is having loss assessment coverage that has a much lower deductible than the the strata corp’s.

#124 Tony on 12.17.19 at 1:38 pm

Re: #12 Yabba dabba doo on 12.16.19 at 4:33 pm

I’m still betting on no deal whatsoever. I’d have to see it in writing to believe it. The jobs numbers in America and this so called phase 1 trade deal just all happened to coincide with the voting on whether or not Trump gets impeached.

#125 IHCTD9 on 12.17.19 at 2:41 pm

#117 Ponzius Pilatus on 12.17.19 at 12:00 pm

As for Canada, we won’t need any roads thanks to our F-150s.
____

Fixed.

#126 SmarterSquirrel on 12.17.19 at 2:49 pm

#108 Sailaway

You are only talking about the legislation portion of laws that apply to employment. There is also an entire body of common law built on decades of case law decisions that establishes what appropriate severance is in Canadian jurisdictions, what constitutes wrongful dismissal, and more.

Again, most employers when laying a group of people off will try to do it in the most profitable way, they are responsible to their shareholders. Some employers as a result use the approach of low balling laid off employees and putting urgency behind the need for them to sign immediately, in the hopes that most will accept as most are unaware of their legal rights and entitlements. Even if the employer offers more than the minimum required by the statute, it may still be an offer that is well below what is required based on common law precedents.

Therefore, it is best for the employee to know both their statutory and common law rights when it comes to being fired so that they can ensure they get the full extent of what Canadian law says they are owed.

Given it sounds like you are an employer, you should read up on this topic so you are better informed as well. It may help you avoid future litigation with employees.

Susan if you’re still reading, I hope you’re making an effort to learn about both your statutory and common law rights. The common law rights are usually well above the minimums in the legislation.

#127 Eks dee Siple on 12.17.19 at 3:18 pm

Sailormoon, you’ve been oddly and overly sensitive as of late. Something happen on one of your cruises? I enjoy your posts more when you don’t give a crap about anything… come on, lighten up, dude. You’ve got it made in the shade… although, only 2 cars? So give us some of that long-promised ‘free advice’ you’ve been teasing us with… -XD

#128 NotLegalAdvice on 12.17.19 at 3:38 pm

#103 Mississauga Mel on 12.17.19 at 9:24 am
Season’s greetings to all blog dogs. I am proposing a blog dog get together in my lovely city of Mississauga over the holidays. Perhaps reserve a table at a Texas Longhorn off the QEW for a night of blog dog chatter, a meal and some jolly good fun. If anyone in the GTA is interested let it be known and maybe we can set something up.

_____________

This is a great idea. Why not in Toronto though??

#129 crowdedelevatorfartz on 12.17.19 at 4:22 pm

@#115 Ponzie penny pincher
“I worked 30 years for a bank.”
+++++

Laid off eh?

#130 crowdedelevatorfartz on 12.17.19 at 4:24 pm

@#122 Phylis
“After the pitch at the counter i started receiving phone calls from the branch. They wanted to arrange an appointment with me.”
++++

Oh trust me, I’ve had the same Bank cold calls.
I dont even answer them any more.

#131 unbalanced on 12.17.19 at 4:36 pm

As the name says—–sail away.

#132 crowdedelevatorfartz on 12.17.19 at 5:12 pm

@#117 Ponzie Prattle

Comparing China’s 1.3 billion people and their Rail /Rapid transit systems to Canada with 40 million people is ridiculous.
But I expected nothing less.

But when China’s high speed trains crash they just bulldoze the wreckage and bodies together and patch it all up.

https://www.forbes.com/sites/kenrapoza/2011/07/25/in-china-train-crash-buried-evidence/

When are you moving there?

#133 Sail away on 12.17.19 at 5:44 pm

#127 Eks dee Siple on 12.17.19 at 3:18 pm

Sailormoon, you’ve been oddly and overly sensitive as of late. Something happen on one of your cruises? I enjoy your posts more when you don’t give a crap about anything… come on, lighten up, dude. You’ve got it made in the shade… although, only 2 cars? So give us some of that long-promised ‘free advice’ you’ve been teasing us with… -XD

——————————————

Did I come off as sensitive?

Mostly I had a lot of procrastination time on my hands while supposedly writing xmas speeches.

Although Ponzie did say some hurtful things.

I may have mentioned advice, but don’t recall the free part. I’ll circle back to that after finishing this damn speech.

#134 Mississauga Mel on 12.17.19 at 10:02 pm

#128 NotLegalAdvice on 12.17.19 at 3:38 pm
#103 Mississauga Mel on 12.17.19 at 9:24 am
Season’s greetings to all blog dogs. I am proposing a blog dog get together in my lovely city of Mississauga over the holidays. Perhaps reserve a table at a Texas Longhorn off the QEW for a night of blog dog chatter, a meal and some jolly good fun. If anyone in the GTA is interested let it be known and maybe we can set something up.

_____________

“This is a great idea. Why not in Toronto though??”

Toronto is fine with me! Let’s set a date, time and place and make it happen!

#135 Gotta Get Out of Calgary on 12.18.19 at 12:49 am

#126 SmarterSquirrel on 12.17.19 at 2:49 pm

Therefore, it is best for the employee to know both their statutory and common law rights when it comes to being fired so that they can ensure they get the full extent of what Canadian law says they are owed.

_______________________________________

This is wise advice for Susan (and anyone else). Regardless of the employer’s moral and ethical code, humans do make errors.

My first experience with severance occurred when my employer at the time decided to close all regional offices, go online with most operations and outsource the rest. We joked around the office that the company would end up consisting of one employee — the President/CEO.

After a little over five years employment, I was offered four weeks severance. I called the HR dept and naively stated that I had expected one month severance for each year of employment.

I heard a clunk followed by momentary silence. (The HR advisor dropped the phone.) He then said we should discuss this and that he would call me so that I wouldn’t have to pay long distance charges. “It’s okay,” I replied. “I called on the toll-free number so you’re paying the charges anyway.”

I was informed that, according to Alberta law at the time, they were only required to offer one week per year of employment.

Uhhh……I’ve been with the company for over five years. (They miscounted on the dates.)

I was then quickly offered the five weeks and advised that, according to Alberta law at the time, they could also offer one additional week due to my age category plus one more week due to the unemployment rate in Alberta at the time. Total offer of seven weeks severance. (So why didn’t you include these two additional weeks in the initial severance offer?)

A learning moment for me — always research and get the facts; don’t rely solely on another person, especially in financial matters. Errors occur and agendas exist.

#136 Linda on 12.18.19 at 11:33 am

#19 ‘Shawn’ – check your facts. First, AimCo reports to the Alberta Treasury Board. Second, sections 19 & 20 of the AimCo Act specify that AimCo would have to abide by ‘directives’ issued by the Treasury Board. Third, the UCP has unilaterally forced the issue regarding who manages the teacher’s pension fund. They did this without any consultation or warning. They also rushed through via the same bill 22 a number of changes to the recently granted self governance to other public pension funds (also without any consultation or warning) that took away those funds ability to choose their own pension fund manager. Thus AimCo need not perform well or even manage the funds responsibly & the fund contributors – the employers & employees – have no option but to put up with substandard results.

‘Arm’s length’ implies that the funds are safe from meddling. This is patently not the case & in fact, there are indications that the UCP may ‘direct’ AimCo to invest pension fund dollars in oil & gas ventures regardless of whether doing so would be in ‘the best interests’ of the fund members.