Dr. Garth

– Crazy Dog Lady, Alex Cearns

We may not be able to fully protect you from Donald you-know-who, T2’s coming tax fest, death-by-Reaper from above, critter-killing climate change, the Wexiteers or Drake’s forthcoming album, but we aim to combat financial stupidity, every chance we get.

And that brings us to Nurse Bethany. She’s 23. Wants to retire.

“Thanks for your daily posts. My uncle recommended I read them as I’m interested in personal finance (and retiring early haha). A little about me; I’m 23, an RN, no CC debt, and have a TFSA with a financial advisor, but just started doing stocks on my own as well. I wanted to take investing into my own hands but leave the current amount with my financial guy ($13K). What advice would you give someone my age, with a stable career/PP and looking to do some long term investing?

“Lastly, I have some student loan debt ($26K). Should I be more focused on paying that back or investing? Investing is more appealing, whereas the loan is more daunting and is going to take years to pay off. I’d love to be able to do both, but rent is expensive andI’m often choosing between loan and investments.  I also have the choice to a fixed (prime +2%) or floating (prime) interest rate on my loan. I am currently on the floating rate because I just started repayment in November, the floating is lower and if I switch to fixed I cannot switch back. Am I wise to take the floating rate or should I lock in a fixed rate?  Thanks again for your blog posts, from a 23 year old fan!”

Oh, B. Where to start? We admire the spunk and the aggressive investing, but you’re in negative net worth, kid. Debts exceed assets. And the student loan ain’t cheap – floating at around 4% or fixed at 6%. Any investments must churn out a big return in order to compensate for taxes and the costs of that borrowing.

Moreover, I hope the ‘financial advisor’ isn’t charging you anything to manage a small TFSA amount, or this just gets worse. And now you’re flipping stocks? Bethany, you’re a nurse. Focus on that – patients, bodily fluids, my golf times – not trying to outsmart the dudes on Wall Street. The best advice is to take your assets, apply them to your debts, stick with the floating rate on your loan and trash it in the next two years. Then get back to us. Unless you’ve retired.

Now, to Michael. The beat goes on…

“I’ve been reading your blog for a few years now and is my go-to therapy. My daily moment of zen….,” he writes, pleading for leniency. It won’t work.

“I am looking to get some unbiased advice. My wife (30) and I (31) live in Calgary. I’m an engineer, she’s a registered psychologist. We’ve been together since 2014 and now she’s finally making a salary. Together, we have combined liquid assets of around $260k, no debt of any kind, and total annual household income around $200k.  We sold our house in deep south Calgary last summer (at a loss…) and have been renting my mother-in-law’s house (she lives with her boyfriend now). With this “preferred” rent, we are able to save a combined minimum $6,000 from our paychecks each month (total combined take-home for us is ~$10,000/month). But now it’s time to get a place of our own as we are thinking of trying to have a baby in the next few months.

“Our dilemma is as follows…do we buy a move-in ready house ($675,000), buy a fixer-upper and renovate before we move in ($500,000), or rent a house ($2-3k)? I’m a part-time musician…and my instrument is drums…which basically eliminates the idea of renting a condo or townhouse. We’d like to have 2 kids one day. What should we do? And what percentage would be a reasonable down payment if we go that route, given this low interest environment? Thanks for all you do, please keep it going!”

Recap: the two of you live in a full house, pay dirt for rent, salt away six grand a month, got burned on Calgary real estate, and now want to jump back in. Plus your wife just landed a job after years of training for it, and wants babies. So everything has to change.

Why?

Can’t you have a baby and raise it in the house where you’re living? The kid won’t care if you rent. And if you failed in the rotten Cowtown market last year why so eager buy an even more expensive place now? Forget it. Rent. Even better, stay where you are. And drums, sheesh. Get a proper hobby, like soldering.

Now, Greg. He’s okay but I worry about his accountant.

“I own a business (farm) in partnership with my wife and my parents. My wife also owns another business in partnership with another person. I am not involved with her business. Her business has really taken off in the last two years and now we are getting ourselves in a bit of a personal tax situation. We have used up most of our accumulated rrsp room.  The accountant likes dividends and so does her partner. But I’m not so sure pulling money out of her company as dividends is the smartest way to do it. My question is how do we structure our income from either or both companies that is most effective for our long term financial safety?”

It’s a perpetual question. How should self-employed people pay themselves? Salary or dividends? Unfortunately, most get the wrong advice. And from trusted, myopic, accountants.

Divvies are paid from after-tax corporate earnings. So the company pays tax then distributes the rest to the owner, who also pays tax – but at a lesser rate than with salary. Because that person owns the company, she is in effect taxed twice – the total then equaling what the tax would have been on salary alone. There are no savings. It’s illusory. And by taking dividends the owner accumulates no new RRSP room to be used to reduce the tax load. Moreover, self-employed people don’t have pensions. If anyone needs RRSPs, it’s them.

Finally, indie operators have a big target on their backs here in Canuckistan, where the feds pillage small business. Accumulating capital inside a corporation is begging for punitive treatment as that money grows and throws off passive income. You’re better to bite the bullet, take salary and fatten up the RRSPs. Plus you’ll chop the fees of accountants who push you into complicated corporate returns. Just saying.

 

106 comments ↓

#1 Don Guillermo on 01.07.20 at 4:25 pm

#74 BobC on 01.07.20 at 1:45 am
I have to agree. The General was a nice guy. He didn’t kill that many people. We should have flown in more pallets of cash.
*****************************************
PM Bearded Socks would have brought him home to rehabilitate.
*******************************************
#87 the Jaguar on 01.07.20 at 9:55 am
@#56 Nonplused on 01.06.20 at 9:30 pm
It wasn’t the ‘Ramada’, it was the Kananaskis Resort and it was the 28th G8 Summit, held nicely a stones throw from Calgary. The police ’rounded up the ‘usual suspects’ from Antifa groups as they arrived at the Calgary Airport and threw them in jail until the event was over. Forget what charges were laid, but it hardly matters. Oh me…….I long for the good ole’ days
********************************************
It was the first G8 summit after 9/11 and the strategy was to hold the summit in more remote locations and make it easier to protect from protestors and bad guys.

#2 Niagara Region on 01.07.20 at 4:34 pm

Today the news program “Democracy Now” broadcast amazing interviews with a whistleblower who had worked at Cambridge Analytica and the co-director of a film (“The Great Hack”) on how collected personal data from Facebook, cellphones, web-browsing (etc.) have been used to sway election results in several countries, not just the US. According to these interviews, such personal data are now considered more economically valuable commodities than oil: https://www.democracynow.org/2020/1/7/the_great_hack_cambridge_analytica
https://www.democracynow.org/2020/1/7/the_great_hack_documentary_cambridge_analytica
https://www.democracynow.org/2020/1/7/cambridge_analytica_data_manipulation_john_bolton

#3 CONDO on 01.07.20 at 4:35 pm

Future site of CONDO, CONDO, CONDO AND MORE CONDO!
https://www.cbc.ca/news/canada/toronto/toronto-homeless-sweep-mayor-homeless-advocates-1.5416934

#4 DogLover on 01.07.20 at 4:49 pm

That’s the most flattering picture of Trumpy-Bear I think I’ve ever seen!

#5 Camille on 01.07.20 at 4:57 pm

Read “What They Want” today. I’m late, but that was so interesting. Mr. Turner you are revealing the “hidden agenda”, in OB terms.

#6 NoOneOfConsequence on 01.07.20 at 5:09 pm

Question about the statement “bonds up, yields down”.

I have always assumed that this was a straight mathematical correlation – meaning…
Because the price of the bond increased, the calculated yield goes down.

Assuming I have a bond that I bought in at 4.5%, sure the yield drops for FUTURE purchases at this higher price, but not for what I already have.

Essentially – when I buy, I actually lock in my yield on that investment.

Is this correct?

Sure, but with rates where they are why would you hold a 10-year or 30-bond to maturity? – Garth

#7 Still employed in AB on 01.07.20 at 5:12 pm

Honestly Alberta feels like it’s in that unrecoverable flat spin straight outta Top Gun. The condo market free fall is accelerating and the place I rent has lost more in value over the last 3 years than I’ve paid in rent. Expensive properties are taking huge haircuts and I know multiple people who are trying to sell a house after having moved and are re-listing this spring or have become involuntary landlords. Can’t imagine anyone thinking now is the time to buy in AB. Businesses in YYC have been carrying a lot of the tax burden and they can’t any longer…Which means rising taxes for homeowners. The credit cycle hasn’t turned yet but when it does I can’t imagine Alberta been a pretty picture.

#8 Ronaldo on 01.07.20 at 5:22 pm

I’m a part-time musician…and my instrument is drums…which basically eliminates the idea of renting a condo or townhouse.
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God help the next door neigbours if he decides to buy a house. Been through that nightmare.

#9 Loonie Doctor on 01.07.20 at 5:25 pm

The perpetual salary vs dividends question for the incorporated. I have noted the same advice regarding dividends from some accountants. That seems to be based on not paying CPP as a tax saving. Really it is a pension and not a tax. Safe, but low return. The follow-up argument is that you can invest and make more on your own which is a mental accounting error. You can consider the safe floor of CCP when thinking of your overall planning. The other is to release the RDTOH from corporate investments.

A bunch of factors interact and they also change as the portfolio income grows either passing the passive income limit or outstripping the usual amount of dividends needed to live off of. So, salary, RRSP, and TFSA usually wins by spreading things out. Also, diversifies against the legislative risk like we have already seen.

I made an online simulator to model it.
https://www.looniedoctor.ca/corporation-vs-rrsp-vs-tfsa-calculator/
-LD

#10 Stan Brooks on 01.07.20 at 5:44 pm

The latest and greatest news in cuckoo’s – land?

https://ca.yahoo.com/news/justin-trudeau-beard-vacation-2020-193413523.html

The beard of the PM. He is thinking very hard in that picture. With total of 2 neurons this is what you get: hard thinking and production of childish stupidities.

And no, it is not a mental institution, it is a ‘normal’ place with legalized pot.

Cheers,

#11 yorkville renter on 01.07.20 at 5:46 pm

#3… no, it won’t be condos. its a ravine… and the homeless people there are throwing mountains of trash everywhere. Imagine a hoarder’s house exploded, and you’ll know what the situation is like.

#12 Stan Brooks on 01.07.20 at 5:48 pm

at 23, just started ‘doing stocks’. I was just ‘doing chicks’ at that age…

Seriously. Stop that fluoride in the water, please.

Cheers,

#13 yorkville renter on 01.07.20 at 5:49 pm

I’m taking dividends until I run out of RRSP room. I paid $750 in income taxes last year… will ride that train until I have to get off

#14 Damifino on 01.07.20 at 6:01 pm

And drums, sheesh. Get a proper hobby, like soldering.
————————–

I’m quite proficient at both of those activities.

Fortunately, the soldering I can still do in my rented apartment. But now that I no longer own a home I’m obliged to rent other space specifically designed for those who attempt to make music by banging on things.

#15 Interstellar Old Yeller on 01.07.20 at 6:02 pm

I’m a little concerned Bethany is already eyeing retirement when so soon out of school. Nursing is a tough gig. For the sake of your patients and for your own mental health I hope you got into the profession at least partially because there’s something about it you like, Bethany.

#16 IHCTD9 on 01.07.20 at 6:03 pm

Bethany – 2k/month and you’ll retire early at 53 with 1.7 mil + pension/OAS/CPP coming in at 60-65. 53 comes pretty quick.

Should be no problem bridging the 53-60 with 80k/yr.

If you keep going till 65, you’ll have 3.4 mil kicking off 163K/yr while preserving the principal if you end up with kiddies somewhere down the line.

You’re going to do great if you’re down for investing already at 23!

Don’t tell any of the Men you’re dating what you’re up to!

#17 Mattl on 01.07.20 at 6:29 pm

#7 Still employed in AB on 01.07.20 at 5:12 pm
Honestly Alberta feels like it’s in that unrecoverable flat spin straight outta Top Gun. The condo market free fall is accelerating and the place I rent has lost more in value over the last 3 years than I’ve paid in rent. Expensive properties are taking huge haircuts and I know multiple people who are trying to sell a house after having moved and are re-listing this spring or have become involuntary landlords. Can’t imagine anyone thinking now is the time to buy in AB. Businesses in YYC have been carrying a lot of the tax burden and they can’t any longer…Which means rising taxes for homeowners. The credit cycle hasn’t turned yet but when it does I can’t imagine Alberta been a pretty picture.

——————————————————-

Counter point – this sounds like a great time to buy in Calgary. Desperate sellers, low interest rates, market that has been down for years. This is why everyone misses the bottom, no one wants to buy into a down market. Everyone seemingly wants to throw money at a market that is gaining.

I do agree that the couple in the blog should continue to rent. If they had to sell a house at a loss 6 months ago, not sure why they would want back in. Probably cost them 30-40K to sell and move, selling and moving homes is a wealth killer, I’d stick in the cheap rental.

#18 Shawn Allen on 01.07.20 at 6:32 pm

Trudeau’s New Beard

If I remember correctly (which is perhaps doubtful) Pierre Trudeau sported a grey beard only during the breif time after he resigned as party leader after being defeated by Joe Clark. He was still an MP.

Pierre was back as leader when Clark’s minority goverbnment’s budget was defeated (John Crosbie, finance minister) laregly due to a plan to raise gasoline taxes by 18 cents per gallon.

Pierre trudeau then got a majority government after promising mnot to raise gasoline tax by 18 cents per gallonjg – and promptly raised it by 25 cents.

And Pierre shaved the beard.

That’s how I remember it anyhow.

#19 short horses on 01.07.20 at 6:33 pm

Great post today, Garth. It’s nice to see examples of young people taking investing seriously. Happy New Year!

#20 Shawn Allen on 01.07.20 at 6:35 pm

I hit submit accidentally before I checked spelling. So, even more spelling mistakes than my normal. Well, who cares about typos anyhow?

#21 Chaddywack on 01.07.20 at 6:36 pm

Also taking dividends only you don’t have to pay an CPP.

Yay another source of retirement income that you do not qualify for!

No RRSPs, no CPP, these incorporated people are sure taking risks……at least they can live off of OAS and will get the full supplement.

#22 acdel on 01.07.20 at 6:50 pm

#7 Still employed in AB

And yet Calgary is still growing. Why so glum? It will get better! I do agree, not a good time to buy! Great time to rent and invest!

#23 Duke Willis on 01.07.20 at 6:57 pm

DELETED

#24 crazyfox on 01.07.20 at 7:06 pm

#111 MF on 01.07.20 at 3:14 pm

06 crazyfox on 01.07.20 at 2:24

Some disagreements (big ones. Yuge):

-Iran has been upsetting the balance of power for decades and has a lot of enemies. Your assertion that the response by allies has been tepid is incorrect. I see hidden support and only tepid criticism, actually. – MF

The U.S. might have Boris Johnson’s support as an ally… for a time. Another nation does not come to mind.

-That general’s support and public outcry is a result of fear more than anything else. The North Koreans, Stalinists, Chinese and all the other totalitarian regimes do the same thing in times like this to deflect from the fact that they are ruthless with their own people. People show “support” because they think it will make them safer. – MF

What you say is doubtful.

-Russia and China have no dog in this fight. They just want to use Iran for its oil, like everyone else. They will do zero if any hostilities develop (which they won’t). – MF

China was Iran’s largest importer of oil and owns an 80.1% stake in South Par’s, Iran’s largest gas field in Iran:

https://en.radiofarda.com/a/iran-poll-shows-only-15-percent-in-tehran-satisfied-with-government/30338976.html

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

Iran also has 82 million consumers that China can satisfy, as well as being geographic neighbors offering a tremendous advantage with 2 way trade. With stability in the region, China could add 60 million more?

Russia’s dog in this fight is the price fixing of nat gas and the sale of weapons plus a weakened U.S. adversary. Russia is expansionist. Anything that puts them on the right side of history firms up support from allies and neighbors, helping their cause.

-The oil thing is a bit of a conspiracy but I’ll bite. We can alternatively say that domestic oil accomplishes a huge cornerstone of us policy since the 70’s: less reliance on the Mid East for oil.

Don’t think for a minute that I don’t want to see the U.S. reach energy independence. I do, but to price fix oil through war is not the way and to discourage green tech the way Trump has is beyond irresponsible. This is what we get when we have a personality disordered POTUS but it runs much deeper than that. Trump was enabled from all walks and ignorance is no excuse.

-Expect nothing big from Iran. Too much to lose. Population doesn’t want war and doesn’t support the government. They may even avoid harming the Israelis this time because Israel is in a much better position than in the past, having Arab support on its side this time around. – MF

Consider what Iran manufactures for guns, military weapons, missiles and compare this to, say, peaceful Canada and tell me who’s more war minded? It’s endoctrinated in their minds and culture quite young:

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

https://www.youtube.com/watch?v=_bpJN2oeVrA

https://www.youtube.com/watch?v=Eo5NyL1xS1g

The U.S. has tremendous air power, this is beyond question. The key question is Iranian anti air craft and anti missile capability and challenges the U.S. will face with terrain. Either Iran has it or it doesn’t.

https://www.heraldmailmedia.com/news/nation/russia-rejects-extending-iran-arms-embargo-defies-us-pressure/article_29914d4e-61b4-5440-ad51-84ba2991bf46.html

#25 crazyfox on 01.07.20 at 7:13 pm

https://www.cnn.com/

And so it begins.

#26 Ronaldo on 01.07.20 at 7:38 pm

#12 Stan Brooks on 01.07.20 at 5:48 pm
at 23, just started ‘doing stocks’. I was just ‘doing chicks’ at that age…

Seriously. Stop that fluoride in the water, please.

Cheers,
—————————————————————
At that age I was married for 2 years and 6 months away from paying off my car and out of debt. And yes, I agree about the fluoride.

#27 Drill Baby Drill on 01.07.20 at 7:39 pm

If major oil facilities are destroyed anywhere in the middle east buy Alberta.

#28 crowdedelevatorfartz on 01.07.20 at 7:42 pm

@#10 Stan Brooks
“The beard of the PM. He is thinking very hard in that picture. ”
++++
Nah he’s posing for his “serious discussion”.
Christy Clark used to wear fake glasses to appear smarter… it didnt work.
As for Trudeau’s beard… He’ll shave it when its entirely grey.

Invest in razors.
Millions of bearded Millenials will soon “age out” and join the “silver tsunami” ….and in a desperate whiplash of angst…they will want to retain their youth by shaving….

You can tell all your friends heard it here first!
Fartzy the all seeing, all knowing Sage….who knew.

#29 PA on 01.07.20 at 7:42 pm

#9 Loonie Doctor on 01.07.20 at 5:25 pm
“…I have noted the same advice regarding dividends from some accountants. That seems to be based on not paying CPP as a tax saving. Really it is a pension and not a tax. Safe, but low return. The follow-up argument is that you can invest and make more on your own which is a mental accounting error. You can consider the safe floor of CCP when thinking of your overall planning. The other is to release the RDTOH from corporate investments…”

——–

Once you have reached 39M’s (39 years of maximum contribution) you will not gain any additional benefit by paying out a salary—in theory you could reach that by age 57. Hence between ages 57-65 paying CCP premiums could be considered a tax-since there is no corresponding increase in benefit payout to the contributor, however the rest of Canada will thank you. After age 65 the payout increases can be accruded again, but the increase is minimal.

#30 NoName on 01.07.20 at 7:44 pm

ive been refiling cars every day last few days.

#31 Ronaldo on 01.07.20 at 7:48 pm

#21 Chaddywack on 01.07.20 at 6:36 pm
Also taking dividends only you don’t have to pay an CPP.

Yay another source of retirement income that you do not qualify for!

No RRSPs, no CPP, these incorporated people are sure taking risks……at least they can live off of OAS and will get the full supplement.
——————————————————————
Exactly. At today’s low interest rates and GIS of $11,000 per year, you would need to have saved $550,000 to get that kind of return assuming 2%. Ain’t it great?

#32 NoName on 01.07.20 at 7:48 pm

Hit cick to soon, i am wondering how high gas will go, it must be some breaking point where economy studers for oil is above 110. Does anyone know what is gas price where canadians start eating drywall, my family included… Ok iam lying we have no drywall for us we’ll have to eat plaster…

#33 604Sam on 01.07.20 at 7:51 pm

Is Bethy single? Asking for a friend…

The fact that she is even thinking about retirement is great. But Bethy- heed the long, tired advice of this blog- go for boring, diverse ETFs. Get rid of the debt first, as g-dog says, then Stay away from individual stocks. Get a Bland, boring, balanced broad portfolio of etfs from all over.

Perhaps more importantly, don’t pay much attention to it. Just consistently put money away. Just do it. Every cheque. If you get a raise, avoid lifestyle creep. Avoid taxes legally, but fiercely. You will do great!

#34 Andrew on 01.07.20 at 7:59 pm

Bitcoin moving with oil and gold. Take notes ladies and gents.

#35 cowtown cowboy on 01.07.20 at 8:06 pm

#74 BobC on 01.07.20 at 1:45 am
I have to agree. The General was a nice guy. He didn’t kill that many people. We should have flown in more pallets of cash.
*****************************************
PM Bearded Socks would have brought him home to rehabilitate.
*******************************************
#87 the Jaguar on 01.07.20 at 9:55 am
@#56 Nonplused on 01.06.20 at 9:30 pm
It wasn’t the ‘Ramada’, it was the Kananaskis Resort and it was the 28th G8 Summit, held nicely a stones throw from Calgary. The police ’rounded up the ‘usual suspects’ from Antifa groups as they arrived at the Calgary Airport and threw them in jail until the event was over. Forget what charges were laid, but it hardly matters. Oh me…….I long for the good ole’ days
********************************************
It was the first G8 summit after 9/11 and the strategy was to hold the summit in more remote locations and make it easier to protect from protestors and bad guys.
********************************************

I remember heading out to Heart Creek to do some rock climbing and we were met by a cop telling us that the canyon was off limits…you’d have to hike all the way up and over a mountain range to get down to the Kananaskis side..seemed a little over the top to me…a lot of cops made a lot of overtime during that little conference…saw Air Force One take off from the YYC airport though, that was pretty cool…

As for the Corp guy, I basically take it all out in salary, pick a number just below the next tax bracket and pay yourself that, like around $140k, that plus about 1-1 1/2k in expenses every month makes a decent take home amt, and you get the rrsp room….

Speaking of which..Garth what do you think about adding $$ to the mortgage(As it’s only about 3%), taking that money and putting into rrsp’s, assuming you have the room(we just dumped about 60k into ours, and will use the big refund to dump into the tfsa’s and maybe back on the mortgage, essentially just moving money around but getting a big refund for free..

PPS…Are those the dogs of war I hear barking???

#36 Doghouse Dweller on 01.07.20 at 8:08 pm

#72 Nonplused on 01.05.20 at 7:40 pm

I noticed that Iran declared “3 days of mourning”. So that means Tuesday is go-time if anything serious is going to happen.

I’d use Monday to go long gold and oil.
Tuesday will be interesting. I predict the slow news cycle comes to an end.
—————————————————–
I took heed of this prediction. Was looking a the MSM pictures of the reinforcement troops they were sending over there , Just a bunch of cannon fodder high school kids I thought, so sad !

The nothing-burger mourning is over and the ballistic missile are flying.

#37 Nothing Surprises on 01.07.20 at 8:17 pm

Nurse Bethany, spread you wings and contribute your hard earned skills where they are most needed and where you could also make fantastic savings in renting.

There are small towns in southwestern Ontario with hospital emergency’e closing due to lack of RN’s!

One I will name is Seaforth Ont…….one of many.

Go for it girl!!

#38 Nonplused on 01.07.20 at 8:19 pm

#1 Don Guillermo

#87 Jaguar was right it is not the Ramada, the site is now owned by Marriott. Still a hotel. Anyway in terms of protecting the G8 from bad guys they made a real point to make a guy with a trailer and 2 little kids in the back seat go around. I think it was all for show. I know the site well (although I have to admit I have never been in the hotel, but I have skied at Nakiska and golfed there before the golf course washed away in 2013 as well). They could have done the control on the road in rather than the highway. It was meant to be showy.

#39 Nonplused on 01.07.20 at 8:34 pm

#28 crowdedelevatorfartz

Nobody shaves with a razor anymore unless they are shaving their legs in a shower. That’s why Gillette thought it was a good idea to produce this:

https://www.youtube.com/watch?v=koPmuEyP3a0&t=31s

The millennials are all trying to outgrow each-other’s man-beards and everyone else has realized electric razors are better and faster. And then there is Garth. When was the last time he bought a razor? Has he ever?

#40 Loonie Doctor on 01.07.20 at 8:40 pm

#29 PA on 01.07.20 at 7:42 pm

Once you have reached 39M’s (39 years of maximum contribution) you will not gain any additional benefit by paying out a salary—in theory you could reach that by age 57. Hence between ages 57-65 paying CCP premiums could be considered a tax-since there is no corresponding increase in benefit payout to the contributor, however the rest of Canada will thank you. After age 65 the payout increases can be accrued again, but the increase is minimal.

—————————————————————–
True in theory. I needed to make some assumptions for simplicity to make an estimator. One was that most incorporated people weren’t making max CCP contributions since age 18. Very very few people ever hit the max benefit over a lifetime. Most incorporated professionals won’t either. They start making money too late. Good point though.
-LD

#41 Trumpocalypse2020 on 01.07.20 at 8:46 pm

GET YOUR VEHICLE FUELED UP RIGHT NOW!

https://www.bbc.com/news/world-middle-east-51028954

Iran fires missiles at US. Trump about to hold emergency press conference and respond.

Escalation over night.

NUKES BY NOON – 80% probability.

PREPARE

#42 Dividends on 01.07.20 at 8:47 pm

Comment on dividends, out of a corporation. I disagree with the comments, due to payroll taxes.
CPP you have to pay both sides, around 11% and will increase each year.
WCB, as ex roofing contractor we have paid as high as 10%.
So even if I did it, was looking at 21% in payroll taxes alone.

My advice is take the dividends as as any good private sector company, look after yourself first. Do not count on anything in the government sector.

#43 Lead Paint on 01.07.20 at 8:53 pm

#20 Shawn Allen on 01.07.20 at 6:35 pm
I hit submit accidentally before I checked spelling. So, even more spelling mistakes than my normal. Well, who cares about typos anyhow?

——————————————————-

You’re safe, no one reads your posts anyhow.

#44 Lest We Forget on 01.07.20 at 9:19 pm

Let us not forget that it was Obama who put Soleimani on the “terrorist” list. All Trump did was approve long standing policy. Obama policy. I still think it was really stupid though. Somebody is going to have to back down, and it doesn’t look like it is going to be Iran:

https://www.zerohedge.com/geopolitical/missile-strike-reportedly-carried-out-against-us-base-iraq

Since it seems these missiles came from within Iran and not from a proxy, and the US will be able to tell because they have satellites, well, WWIII is ON like Donky Kong.

I said here earlier that Iran would respond. I even got the day mostly right. The question is, what happens next? Orange Man Bad will be under extreme pressure from the industrial/military complex to respond with overwhelming force. These are folks that have been planning for this long before Trump became president. They planned it all through the Bush and Obama administrations. They have plans.

The fact that the attack from Iran was so small will only embolden the Americans. A dozen missiles? WTF? That’s all you’ve got? Let’s see how you respond to 1000 in one day.

It’s on folks. But thank goodness I live in Alberta so I do not depend on Saudi oil as does Quebec. Shipments from Saudi Arabia will be delayed and we don’t have enough rail cars to help them out much.

#45 espressobob on 01.07.20 at 9:27 pm

#34 Andrew,

Bitcoin, Gold & Oil are a fool’s game. Timing commodities generally leaves one in a world of hurt compared to the major indices.

This is a well known fact some learn the hard way. That can be most unfortunate for some?

#46 ImGonnaBeSick on 01.07.20 at 9:44 pm

#9 Loonie Doctor on 01.07.20 at 5:25 pm

I really enjoy your calculators and robocorps LD, your site has been a help for my corporate account for sure. You hit the nail on the head when you said, “That seems to be based on not paying CPP as a tax saving”. This is exactly how people are convinced by accountants to take dividends instead of salary.

Garth is (of course) correct when he says the tax savings of this method are illusory. Some of the my senior level engineers, prior to joining us, were convinced to do subcontract and taking dividends. Now after 15, 20 years have no rsp room, will get no CPP and I’m afraid will have a very bad retirement…

#47 Dr V on 01.07.20 at 10:10 pm

Divvies vs wage (with more RRSP contribution). Nice
problem to have. Ask my accountant this every
year. “No diff” I am told, though that may be for my
particular situation. Mrs V and I have respectable savings but corp still has some of its own money. Thinking this may work to buy more income sources in retirement. Then maybe after a couple of years of RRSP withdrawals take the divvies instead. Yeah, gotta think about that…..

#48 Yukon Elvis on 01.07.20 at 10:10 pm

They hit an empty parking lot. Twelve times. No US casualties. Mission accomplished. The Great Satan has been humiliated and defeated. A great victory for Islam. It is all over. A La Snackbar !

#49 Stoph on 01.07.20 at 10:24 pm

Bethany: You’ll be in great financial shape once you’ve paid down the student loan as Garth suggests. Pay off the debt before you experience too much of a lifestyle creep now that you make decent money.

Michael: As much as you and your wife may want your own space as you’re looking to have a baby, do consider the practicality of living in the same house as your mother-in-law once a baby is around. Life will be a whole lot busier.

#50 Phylis on 01.07.20 at 11:25 pm

DELETED

#51 Phylis on 01.07.20 at 11:33 pm

28 crowdedelevatorfartz on 01.07.20 at 7:42 pm Trudeau is on the wrong end of the trend. Just another oldie now.

#52 Sail Away on 01.07.20 at 11:40 pm

#44 Lest We Forget on 01.07.20 at 9:19 pm

It’s on folks. But thank goodness I live in Alberta so I do not depend on Saudi oil as does Quebec. Shipments from Saudi Arabia will be delayed and we don’t have enough rail cars to help them out much.

———————————–

Oh well. These things happen.

Consider investing in Suncor and CN Rail. Especially CNR.

#53 Jenny Simms on 01.07.20 at 11:53 pm

I gave up trying to learn about investing in stocks, bonds, mutual funds, what are MIC’s, ETF’s, REIT’s beats me. I am sticking to what I know which is my small business.

I am a young guy 25 and have a decent small business for a little over 3.5 years now and I have no guaranteed lifetime pension with annual pension increases like my good friend, neighbour working for the Ontario government. Good for her, I have nothing against her.

This is why I am saving 80% of my after tax income. My annual savings per year, $185,000 in 2017, $197,000 in 2018, $205,000 in 2019. I have seen a gradual increase in sales, profit from mostly U.S. sales but I don’t want to falsely depend on this trend. I have maxed out all my TFSA’s including this year 2020, my RRSP’s are all maxed out including this year 2020 and all rest mostly in non-registered GIC’s, short term cashable GIC’s.

For me right now I am not concerned about making 7% or 9% or 10% a year but accumulated as much money in a guaranteed way, CDIC, DICO etc. even at 2.4% to 2.9% GIC rates so if or when there maybe a recession, economic downturn comes, I will have hopefully close to $850,000 to $1,100,000 . This would be a real good financial cushion to have. Right now at $785,000 in total net worth of that $175,000 business retained earnings and assets. and no real estate to keep me stuck just renting a decent, moderate house, I am am getting close to my business and financial goals.

This way I am preparing to take a 18 month to 30 month decline of even up to a 35% to 50% hit to my small business sales as I gave heard many of my business colleagues of what happened in the U.S. 2008 to 2010. I can see a decline of at least 25% in business sales and 30% in profits in the next economic hit comes to North America etc.

#54 Miserable Boomer on 01.08.20 at 1:28 am

Trudeau’s got Canada’s economy on the highway to hell.

https://business.financialpost.com/diane-francis/diane-francis-canada-is-on-an-economic-road-to-nowhere

You would think Canadian streets would resemble an old Boris Karloff movie about villagers chasing Frankenstein into a castle with flaming torches and burning the place down to get at the monster, buuuuuut, you elected Justin’s Team back in. What were you thinking Homer?

I know it’s not a popular position to take but over the past few decades I bought stocks, lots of them. These fine companies have made me a multi-millionaire. It’s just that easy. Reason I write this is simple, over time good companies outpace the index in spades.

Take CP Rail for example. That stock went sideways in the 80 dollar range until it didn’t , after the 2008 massacre, continually paid a good dividend but didn’t lose much ground. Basic industrials are like oxygen, no matter what Greta, Marc or Trudeau says, they paddle along. Today CP Rail is a $339 stock and still people talk about diversity. Royal Bank is another, one of many, but like I say, wealth making is an unpopular subject .

#55 DON on 01.08.20 at 1:35 am

#24 Crazyfox

Nicely put!

If I remember correctly China lost big in Libya (oil) when US and Allies invaded. Wasn’t Libya going starting to trade oil based on gold?

Iran is showing the US that they are reachable in the middle east and they have to respond. What else do they have up their sleeve, no doubt they have the Russian S-400 missile defense system or are awaiting delivery and have already trained their operators.

Even Netanyahu told Israel not to get involved in this US unilateral action.

China wants Iran’s oil which is in close proximity. China is also in Africa.

Will this issue ignite a full blown war. Maybe not now – but an assassination of a well know General may just solidify support against the US and Trump’s actions in the eyes of the Iranians.

What will the US do next…respond by sending a missile back or attacking the Shia Militia in Iraq or sending a couple missiles to the Iranian coast. Trump just said no as quoted by Bloomberg News. Remember Trump’s ‘Art of the deal’ is being applied here, just more prolonged drama much like the China Trade deal round 1 agreement in lieu of the final agreement not scheduled, but baby steps, everyone looks like they are busy doing something.

Trump is riding the Trade War and now the Iranian incident as perception is everything and he only has to convince a certain number of Americans to get re-elected. The world be dammed.

I don’t know about the next guy but if someone shot my general who I thought was a hero etc (fighting ISIS). Revenge served cold makes sense

And then there is the Cyber War, forget about nukes, too messy and can’t claim the land for years, why not sabotage and the US is wide open in some respects.

How vulnerable is Iran, no doubt they took precautions in lieu of the American cyber attacks in the past.

Why is North Korea not in the gun sights?
Too close to China, nukes, child emperor, and NOT on the internet and no oil in the equation. I still don’t understand why Trump included the Iraqi Shia’s in the equation. Shia uprising about due in the region.

#56 DON on 01.08.20 at 1:49 am

@Crowded and Nonplused

Saw that pic of Trudeau, had the same thought, grey in his beard and not a grey hair on his head.

70s beards, trucker hats, logger shirts and jeans, repeated in the 2010s. I remember electric razors were the next fad makes sense after the 70’s beards.

Garth is there a specific ETF for manual and electric razors. I see lots of beards out there slowly turning grey.

Might also want to invest in facial moisturizer after all it is the 2020’s and everything is different again. Maybe my Brut and Old Spice stocks will pay off as a new but old fad begins again. All they need is a catchy slogan or hijack one like McD’s $1.49 Day…..Woodwards $1.49 Woodwards

#57 Mike (not a drummer) on 01.08.20 at 1:52 am

I laughed when you said “real hobby lile soldering”… i just bought myself a soldering iron for xmas… so now that’s one of my hobbies on top of tax preparation and computer repair… Remember the old addage: have tgree hobbies: 1) to keep you fit 2) to express yourself 3) to make you money. Drumming sound like all three… if only soldering counted as exercise I’d be set too!

#58 Nonplused on 01.08.20 at 2:36 am

#41 Trumpocalypse2020

There will be no nukes.

For those reading further, the use of nukes would show US weakness. They will not do that. It is not 1945. They will use an absolutely massive conventional attack lead by supposedly non-functional F-35’s and F-22’s followed by an overwhelming number of older aircraft, F-18’s and such. No nukes. Iran is not 1945 Japan.

If they do fire off nukes, buy guns, gold and goats in as much quantity as you can. The war for you won’t be with Iran, but with your neighbors.

#59 devore on 01.08.20 at 4:11 am

#39 Nonplused

Nobody shaves with a razor anymore unless they are shaving their legs in a shower. That’s why Gillette thought it was a good idea…

Is that why they suddenly lost market share and a couple billion in revenues? All those toxic men not shaving, shoving their male privilege in everyone’s faces.

#60 MF on 01.08.20 at 7:07 am

#24 crazyfox on 01.07.20 at 7:06 pm

I don’t know I still disagree..

Last night went exactly as I predicted. Iran responded openly, but it was tempered. Some missiles fired at a US position causing no casualties.

Too much to lose. Both internally and externally by going to open war. Expect continued funding and support of terrorist “proxies” all throughout the mideast whose only goal is to further Iran’s aims and instigate violence though. Expect continued US, Saudi, or Israeli responses too. Iran will deny it though, and try the old, tired tactic of blaming Israel. They will fail, again. We will get probably get a UN resolution drafted by other totalitarian states “condemning US aggression”, but it will be rightly vetoed for the toilet paper it is.

Basically the status quo.

China: fake statistics pumped out by a paranoid communist government while being hindered by geography. Nothing to gain through conflict.

Russia: big land mass but too small of an economy to do anything. Nothing to gain through conflict.

Both of them wouldn’t risk anything serious for Iran and run the risk of getting involved in a conflict. Not worth it.

Again, status quo.

MF

#61 Jager on 01.08.20 at 7:32 am

The Mossads intelligence network in Tehran is breathtaking. Particularly so if you happen to be on their “To do list.”

However, as President Zelensky noted. One should not speculate…

https://www.debka.com/mivzak/no-survivors-in-ukraine-airline-crash-near-tehran/

#62 crowdedelevatorfartz on 01.08.20 at 7:36 am

@#55 DON
“I see lots of beards out there slowly turning grey.”
++++
Yep.
Everyone under the age of 30 wants to look older.
Everyone over the age of 40 wants to look younger.
I’d say the beard fad will fade as the “silver tsunami” washes over the Millenials.
They will become their parents……….the horror.

#63 Tater on 01.08.20 at 8:24 am

#12 Stan Brooks on 01.07.20 at 5:48 pm
at 23, just started ‘doing stocks’. I was just ‘doing chicks’ at that age…

Seriously. Stop that fluoride in the water, please.

Cheers,

——————————————

Is the left or right called chicks?

#64 crowdedelevatorfartz on 01.08.20 at 8:32 am

@#59 Devorce
“All those toxic men not shaving, shoving their male privilege in everyone’s faces.”
+++
Not toxic, just Fabulous Furry Freak Brothers.

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

Beards and Pot. Canada emulates a 1970’s comic book that I used to laugh at when I was 16.

As for the rest of the comment….. ick.

#65 TurnerNation on 01.08.20 at 9:06 am

Report on Business has a big ad Bank of Canada is hiring a Governor. Any blog dogs apply?
Must enjoy cutting and blustering.

#66 IHCTD9 on 01.08.20 at 9:07 am

#48 Yukon Elvis on 01.07.20 at 10:10 pm
They hit an empty parking lot. Twelve times. No US casualties. Mission accomplished. The Great Satan has been humiliated and defeated. A great victory for Islam. It is all over. A La Snackbar !
___

Yep – blowing up Iraqi assets while looking to save face and sneak out the back door.

Hey, it’s all they can really do – provoking the US into a major strike would cause the total destruction of what little 1st world civilization Iran currently has.

#67 Dharma Bum on 01.08.20 at 9:07 am

#55 Don

Will this issue ignite a full blown war. Maybe not now – but an assassination of a well know General may just solidify support against the US and Trump’s actions in the eyes of the Iranians.
——————————————————————-

When greater interests are at stake, a country – especially one like the US – should strike early, strike fast, and strike hard.

Has the world not learned that “appeasement” does not work? Does anyone really care what Iran’s opinion of the US is?

Ever hear of Neville Chamberlain and Adolph Hitler?

https://www.nationalarchives.gov.uk/education/resources/chamberlain-and-hitler/

Learn the lessons of History.

Never be fooled by the charming monster. Things need to be nipped in the bud, lest they get out of hand.

Destroy the beast before it destroys you.

#68 Stone on 01.08.20 at 9:11 am

Looks like VBAL is doing just fine. Garth, do you still have a problem with this type of ETF of ETFs?

https://www.bnnbloomberg.ca/vanguard-s-etf-of-etfs-spurs-3-billion-of-assets-in-canada-1.1370717

For small accounts, no. People with larger net worth surrender flexibility and rebalancing possibilities while taking on more risk having a one-asset portfolio. – Garth

#69 Dharma Bum on 01.08.20 at 9:13 am

#62 Crowdedelevatorfartz

I’d say the beard fad will fade as the “silver tsunami” washes over the Millenials.
They will become their parents……….the horror.
——————————————————————–

I was sporting my seasonal “ski beard” last winter.
While en route to Colorado, I stopped at a Dunkin’ Donuts for a coffee, and they gave me the senior’s discount.

I shaved the next day.

What-a-drag-it-is-getting-old.

#70 crazyfox on 01.08.20 at 9:16 am

#55 DON on 01.08.20 at 1:35 am

Hi Don. I’ve read S -300’s for sure, nothing on S -400’s but Russia’s latest air missile defense system post dating S-400’s is one that both nations are in negotiation with, likely in my opinion due to Russia’s want to test the system in battle against U.S. forces. My guess is we’ll be the last to know :), but variations of S-300’s have likely already arrived on Iranian soil, with a deal worked out 5 months ago:

https://en.wikipedia.org/wiki/S-300_missile_system

Right now we are witnessing 2 nations trying to bait each other into an overblown response. Whoever is seen as the aggressor will lose support for it’s allies. Iran will gain support as the victim while the U.S. will lose support as the bully. So far, this is how it’s played out. A dozen missiles fired last night with no casualties, Iran wants to keep this trend going is my guess (or they got lucky) and wisely so.

Guaranteed, Trump has faced blow back since assassinating Iran’s rock star general not just from U.S. allies, but with his own intelligence. The way Trump chose and handled this assassination, his tweets, everything about it suggests Trump is truly out of his depth and has no idea what he’s doing, as well as suggesting the people closest to him don’t know either. (if this was Pomeo’s influences, it explains much) Trump knows his objectives (reduce oil production in middle east. I think he would sacrifice western non U.S. oil production out of Iraq to do it) but he doesn’t know war strategy at all and if this continues, it will end quite badly for the U.S. .

I think the worst case scenario is China and Russia back Iran in a hot war full of casualties. I can’t see this scenario going nuclear, but I can see it happening and the consequences would generate a major selloff as it would heavily impact trade. Right now, we’ve got 82 million Iranians geared for war. Lets not forget that Iran practices conscription:

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

This is the reason for what is reported as 1 million Iranians in the streets of Soleimani’s funeral as most of the men in Iran have served the military at some point in their lives. Couple this galvanized support against the U.S. with the U.S. objective to cripple oil production… I’ve laid it out best in my comment here:

#106 crazyfox on 01.07.20 at 2:24 pm

#71 CanadianGrizzly on 01.08.20 at 9:30 am

DELETED

#72 Stan Brooks on 01.08.20 at 9:42 am

DELETED

#73 crowdedelevatorfartz on 01.08.20 at 9:47 am

@#70 crazyfox
” it suggests Trump is truly out of his depth and has no idea what he’s doing, as well as suggesting the people closest to him don’t know either….”
+++++

When Trump first entered the White House the most senior staff in his Foreign embassy’s and offices , listened to the new Trump White house foreign policy directives ……took their pensions and walked……
As one anonymous Foreign Dept official commented, ” We’re not ordering toilet paper for the Embassy’s , we’re building friendships and contacts that take years to develop….and its all gone”

US foreign policy is a knee jerk disaster lurching from one debacle to another.
North Korea, China, Iran, Russia, ……crisis management…. all on what ever Presidential whim pops up in a tweet.

Then we have …allies treated as foes, their leaders insulted and ridiculed by a boorish bully.
Enemy’s treated as friends…..whats that say for long term trade negotiations or military alliances?

Trump is a nightmare, elected by a voting population disgusted with the self serving, elite, elected, status quo that take their orders from big money.
No surprise there.
Amateur hour in the White House even after 4 years of trying to get it right…
Apparently Donald Jr and The Son-in Law arent quite the foreign policy advisers El Presidente can lean on.
A ….foreign…. policy….. disaster.
Lots of surprises to come I’m sure.

Long after The Donald is gone …..the next President will be left eating crow and the fence mending will take decades.

#74 Dr V on 01.08.20 at 9:48 am

53 Jenny – you’re a young guy???

#75 IHCTD9 on 01.08.20 at 9:55 am

#70 crazyfox on 01.08.20 at 9:16 am
__

S-300 is a 60’s design, S-500 is the latest.

China would be foolish to do anything to encourage a larger US presence in the ME. China needs that Oil, they want less US boots in the ME not more.

The last thing China needs is for the US to show up and blow all that Oil infrastructure into a heap of scrap metal.

#76 Phylis on 01.08.20 at 10:07 am

#50 Phylis on 01.07.20 at 11:25 pm Whoops, sorry. It was a line from a broadcast commercial, demonstrating the errors of autocorrection.

#77 NoName on 01.08.20 at 10:11 am

#73 crowdedelevatorfartz on 01.08.20 at 9:47 am

You’ll find this interesting. Older but interesting.

https://www.csmonitor.com/USA/Foreign-Policy/2016/1115/The-surprising-similarities-of-Trump-and-Obama-on-foreign-policy

#78 Tater on 01.08.20 at 10:14 am

#72 Stan Brooks on 01.08.20 at 9:42 am
#63 Tater on 01.08.20 at 8:24 am

————————————

Tough to type in a straight jacket, I guess.

#79 Remembrancer on 01.08.20 at 10:24 am

#52 Sail Away on 01.07.20 at 11:40 pm
#44 Lest We Forget on 01.07.20 at 9:19 pm

It’s on folks. But thank goodness I live in Alberta so I do not depend on Saudi oil as does Quebec.
———————————————————–
No they don’t…

https://www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/nrgsstmprfls/qc-eng.html

#80 Stan Brooks on 01.08.20 at 10:26 am

DELETED

#81 Ponzius Pilatus on 01.08.20 at 10:30 am

Dharma Bum,
Go chill under a Bodhi tree.

#82 Renter's Revenge! on 01.08.20 at 10:43 am

#6 NoOneOfConsequence on 01.07.20 at 5:09 pm

Question about the statement “bonds up, yields down”.

Essentially – when I buy, I actually lock in my yield on that investment.

Is this correct?

Sure, but with rates where they are why would you hold a 10-year or 30-bond to maturity? – Garth

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

My understanding is that everything in economics is about alternatives and opportunity cost.

When your bonds go up, the yield on your original investment is the same, but the bonds are worth more, so you could sell them and invest in something else with a higher current yield (rebalancing into equities, for example).

It’s why Garth is always ragging on people to sell their expensive houses, invest the proceeds and rent. Sure, you’re saving rent by owning the house, but if the rent to price ratio (the yield) has gone down since you bought, you could sell the house and invest in something with a higher yield and come out ahead.

#83 Ponzius Pilatus on 01.08.20 at 10:44 am

No comment needed.
—————-
Donald J. Trump ✓
Twitter › realDonaldTrump
Had a very good meeting with @kbsalsaud of Saudi Arabia. We discussed Trade, Military, Oil Prices, Security, and Stability in the Middle East!
21 hours ago

#84 Eks dee Siple on 01.08.20 at 10:44 am

#67 Dharma Bum…”Learn the lessons of History. Never be fooled by the charming monster. Things need to be nipped in the bud, lest they get out of hand. Destroy the beast before it destroys you.”

You’ve learned nothing from history. You are completely fooled. YOU are the beast. -XD

#85 Doug in London on 01.08.20 at 11:12 am

There appears to be a lot of concern gasoline and diesel fuel prices will go way up as a result of this trouble with Iran. If that happens what will I do? Cash in some XEG and other oil company stocks and use the capital gains to pay for fuel. Then again, I could get some splash guards and a rat trap carrier for my reliable mountain bike.

#86 Sail Away on 01.08.20 at 11:18 am

Who cares what happens? All we need to do is choose the opportunities giving greatest personal benefit. They can bomb the heck out of each other if they want.

Give it time. Speculation is futile.

#87 Yukon Elvis on 01.08.20 at 11:25 am

Ukrainian air liner with Canadians aboard went down in Iran last night. I saw the vid. At the very end a “light” rises from the lower right of the screen and “connects” with the airliner.

Sure you have enough tin foil? Don’t disrespect the victims with this crap. – Garth

#88 Yukon Elvis on 01.08.20 at 11:42 am

Ukrainian plane crash video.

https://m.youtube.com/watch?v=ipFVMTXw9gI

#89 Sail Away on 01.08.20 at 11:43 am

#53 Jenny Simms on 01.07.20 at 11:53 pm

I gave up trying to learn about investing in stocks, bonds, mutual funds, what are MIC’s, ETF’s, REIT’s beats me. I am sticking to what I know which is my small business.

I am a young guy 25 and have a decent small business for a little over 3.5 years now and I have no guaranteed lifetime pension with annual pension increases like my good friend…

————————————

And I’m a boy named Sue. Also working my own business and saving 110% of my $350,000 income, for a total of $500,000 per year. Most of my money goes to building a rock cave complex accessible from the sea, where I live with three otter companions, swimming to and from my ‘work’. No services of any kind in order to encourage evolutionary advances in night vision.

Basically, all advice on this blog is wrong. I give the above to show what works for me in what my handlers call ‘Imaginaryland’.

#90 NotLegalAdvice on 01.08.20 at 11:48 am

Hey,

You ever google the “typical bubble phase chart”? We are definitely in the “Return to Normal” phase. Whether the next phase occurs in 2020 or 2021 or 2022 is irrelevant. The fact is….the FEAR phase is coming. HANG ON!

#91 YVR Expat on 01.08.20 at 11:49 am

#15 Interstellar Old Yeller on 01.07.20 at 6:02 pm
I’m a little concerned Bethany is already eyeing retirement when so soon out of school. Nursing is a tough gig. For the sake of your patients and for your own mental health I hope you got into the profession at least partially because there’s something about it you like, Bethany.

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

In all honesty you could say that about most jobs. And most people don’t like work, that’s why it’s called working. What magical planet do you live on? The end goal of working is retirement after all.

#92 Sail Away on 01.08.20 at 12:14 pm

#54 Miserable Boomer on 01.08.20 at 1:28 am
Trudeau’s got Canada’s economy on the highway to hell.

https://business.financialpost.com/diane-francis/diane-francis-canada-is-on-an-economic-road-to-nowhere

You would think Canadian streets would resemble an old Boris Karloff movie about villagers chasing Frankenstein into a castle with flaming torches and burning the place down to get at the monster, buuuuuut, you elected Justin’s Team back in. What were you thinking Homer?

I know it’s not a popular position to take but over the past few decades I bought stocks, lots of them. These fine companies have made me a multi-millionaire. It’s just that easy. Reason I write this is simple, over time good companies outpace the index in spades.

Take CP Rail for example. That stock went sideways in the 80 dollar range until it didn’t , after the 2008 massacre, continually paid a good dividend but didn’t lose much ground. Basic industrials are like oxygen, no matter what Greta, Marc or Trudeau says, they paddle along. Today CP Rail is a $339 stock and still people talk about diversity. Royal Bank is another, one of many, but like I say, wealth making is an unpopular subject .

——————————————

I know talking about money isn’t popular on a finance blog, but here goes anyway:

I became filthy rich over the years investing in things like markets, stocks… and, and… equities. They capitalized upside like crazy. I invested in a stock called Blipcoin that went up one million! In 4 months! And iBananas. There’s a million more out there.

So easy if you’re not a dummy.

#93 crazyfox on 01.08.20 at 12:16 pm

#60 MF on 01.08.20 at 7:07 am

Expect continued funding and support of terrorist “proxies” all throughout the mideast whose only goal is to further Iran’s aims and instigate violence though. – MF

Proxy? Is that what it is? Proxy is defined as “the authority to represent someone else, especially in voting.”

Are we to believe that every time Hezbollah fires a rocket, it is the choice of Iran? That every time Yemen rebels fight back at Saudi coalitions, it is under the direction of Iran? At any time? Or, is it more simple than that, a Shia Muslim connection, Yemen and Palestinians being openly oppressed with Iran having the manufacturing capacity to fill the need for guns and rockets (or war profiteer for which most affluent nations are guilty).

If we were born in Iran instead of Canada, would we see it any differently? Maybe the Palestinians who are pulling the trigger are doing it of their own direction, just as rebels in Yemen are but you would have to put yourself into their boots to see it.

“China: fake statistics pumped out by a paranoid communist government while being hindered by geography. Nothing to gain through conflict.

Russia: big land mass but too small of an economy to do anything. Nothing to gain through conflict.

Both of them wouldn’t risk anything serious for Iran and run the risk of getting involved in a conflict. Not worth it.” – MF

I’ve already mentioned China’s dogs in this fight and Russia it would seem, less so but they’ll be there because Russia is expansionist and needs China and Iran’s support for future expansion, to mention resources and trade. MF, you would do well to read my post here from June of last year. It explains what is really in it for Russia. Just note that what it will take for Russia to accomplish what I’ve laid out, is the U.S. gone from NATO, likely a weakened U.S. economy or economy in recession and an unstable government. With Trump in power and having sworn fealty to Putin since 2008 or earlier, Russia could get it’s wish through the U.S. picking a war with Iran. I’ll likely re-post this later as its highly important for readers to see what Russia’s stakes are in this:

#49 crazyfox on 06.17.19 at 5:10 am

With China, its all about trade. Without question, they’ve asked themselves if they can go it alone without exports to the U.S. (especially as of late), or whether defense of Iran is worth it economically. I’m certain Russia and China has looked at timelines beyond the 2020 election and asked themselves what president they prefer in 2020. (Russia will prefer Trump, China, a Democrat) Everything I’ve said here:

#106 crazyfox on 01.07.20 at 2:24 pm

…. they know and much more. They know that Trump will try to create a hot war with Iran before the election not just to reduce world oil production, but for the “rally ’round the flag effect”: to win the election.

https://en.wikipedia.org/wiki/Rally_%27round_the_flag_effect

They also know that at any time, Russia and China in defense of Iran can change the world economy and balance of power should they win. I think it really comes down to Iran’s air defense against U.S. air forces before a hot war starts. It really comes down to Russian SA – 300 and later Russian air defenses installed in Iran. If it’s highly effective in mountainous terrain of Iraq, it has the ability to change the balance of power in the world at a military level and disrupt economics from there.

#94 crazyfox on 01.08.20 at 12:20 pm

#92 crazyfox on 01.08.20 at 12:16 pm

Excuse me, S -300 not S A.

#95 yvrguy on 01.08.20 at 12:29 pm

For small accounts, no. People with larger net worth surrender flexibility and rebalancing possibilities while taking on more risk having a one-asset portfolio. – Garth

———-

what’s the threshold?

#96 Yukon Elvis on 01.08.20 at 12:33 pm

#87 Yukon Elvis on 01.08.20 at 11:25 am
Ukrainian air liner with Canadians aboard went down in Iran last night. I saw the vid. At the very end a “light” rises from the lower right of the screen and “connects” with the airliner.

Sure you have enough tin foil? Don’t disrespect the victims with this crap. – Garth
…………………….
Watch the video. What do you see?

Discussion over. – Garth

#97 crazyfox on 01.08.20 at 12:43 pm

#73 crowdedelevatorfartz on 01.08.20 at 9:47 am

Right you are. I would also add that Trump was also elected by the politically, economically and psychologically illiterate along with those who are quick to believe everything they watch on Fox news, not to mention those who can’t look beyond their wallets.

You are so right about Trump being a foreign policy disaster. If people still doubt the glaring fact that Trump has a personality disorder, just look at what he’s said and done in the last week (well, entire presidency). Trump oozes a complete lack of empathy with everything that comes out of his mouth. This creates a tremendous blind spot in terms of how wars are won and lost.

Just what is that blind spot? Just ask ourselves if the majority of humanity is good or bad. The quick answer is, good. Some of us can get confused at times, lost… but overall, the majority of humanity is good. When war comes down to the question of being fought for good or bad motives or intent, it is far easier to rally ally support when intentions are good, then bad because you have the majority behind you (assuming it’s well messaged, not always the case either). Trump’s blind spot? He doesn’t know good from bad, its all a zero sum game. No empathy. One couldn’t have a worse leader for any government, much less the U.S. .

#98 n1tro on 01.08.20 at 12:46 pm

#28 crowdedelevatorfartz on 01.07.20 at 7:42 pm

You can tell all your friends heard it here first!
Fartzy the all seeing, all knowing Sage….who knew.
———
You forgot….the all smelling…

#99 crazyfox on 01.08.20 at 1:30 pm

#75 IHCTD9 on 01.08.20 at 9:55 am

I’m no weapons expert but what I’m quickly gleaning is that the S -300 air defense has a wide range of applications that have evolved through the decades and are still upgraded to the present depending on their target ugrades. It’s like considering Ford F series trucks as being much different after 13 generations from say, their first. A quick glance tells me Iran has access to S – 400’s if Iran can float the cost and because of applications, cost and access, 500’s are not feasible:

https://en.wikipedia.org/wiki/S-300_missile_system

https://missilethreat.csis.org/defsys/s-300/

https://en.wikipedia.org/wiki/S-400_missile_system

Otherwise, I fully concur. China is hungry for oil, consuming some 13.5 million bpd. With the U.S./China trade war forcing them to look elsewhere for oil besides Iran, and considering their stake in Iran’s natural gas, the last thing China wants is the U.S. in the region never mind telling China it can’t buy oil from it’s neighbor Iran with the goal of reducing world oil production to fix prices to fuel American oil production growth. There are a host of other trade factors to consider but oil and gas imports are chief among them. It took the threat of an all out trade war to force China to comply with U.S. sanctions:

https://www.ceicdata.com/en/indicator/china/oil-consumption

I truly think the outcome of this war will come down to Iranian missile/plane/helicopter air defense. Couple this with Iran’s mountains:

http://www.damavand.fr/iran-mountain-tour-alborz-damavand-zagros-dena/

… and I’m sure Russia will be very interested in how Russian air defenses hold up against U.S. air forces in the mountainous regions of Iran should war come:

http://www.damavand.fr/iran-mountain-tour-alborz-damavand-zagros-dena/

#100 BobC on 01.08.20 at 2:17 pm

#97 crazy Fox

“Right you are. I would also add that Trump was also elected by the politically, economically and psychologically illiterate along with those who are quick to believe everything they watch on Fox news, not to mention those who can’t look beyond their wallets.”

You left out we’re to stupid to bow down and accept what ever the politically, economically and psychologically gifted “leaders” throw at us to maintain a level of peacefulness in our slavery. Most of us love our grandchildren and want the best for them. Has a lot to do with toxic masculinity I guess. You’ve got it or you don’t.

Keep your eye on Virginia.

#101 Doug in London on 01.08.20 at 2:19 pm

And drums, sheesh. Get a proper hobby, like soldering.
——————————————————
I’m reminded of that classic tune I don’t wanna work, I just wanna bang on the drum all day by Todd Rundgren.

#102 crazyfox on 01.08.20 at 2:51 pm

#100 BobC on 01.08.20 at 2:17 pm

Stupid, yes, thanks for the mention. And the times… “Hard times make strong men. Strong men make easy times. Easy times make weak men.” (3:40 on for the time constrained, a swear word a the end)

https://www.youtube.com/watch?v=jdi8KWeUrlY

#103 Sail away on 01.08.20 at 2:59 pm

@ #97 crazyfox:

You write about blind spots in others and oozing. Good God, have you read your own stuff? Your obsession is obsessively obsessive.

#104 world traveller on 01.08.20 at 4:13 pm

He can get an electronic kit for $500-$700 on Amazon, no worry about disturbing the neighbours or babies.

#105 JB on 01.08.20 at 4:21 pm

#122 Sail away on 01.07.20 at 7:48 pm

#121 acdel on 01.07.20 at 6:46 pm

Holy crap; at least Smoking Man made sense. These comments on this blog will make Smoking Man start smoking again.

—————————-

He’ll only stop when he’s dead. Which could come fast when you drink yourself senseless and hotbox cigarettes all day every day.

You still alive Smokey?
_____________________________________________
RIP Smoking Man AKA Tinfoil hat man!
https://www.youtube.com/watch?v=1OkStZhbZ20

#106 Blog Bunny on 01.09.20 at 12:12 pm

My problem with RRSP is that I do not expect to be in a lower tax bracket in retirement and the taxes are supposed to go up. I am already FI so there will be no opportunity to tax shift for me, no year with zero income to find myself, pet bunnies and play video games. So I do not see how an RRSP could be beneficial.

Assets that grow tax-free multiply faster. Like bunnies. – Garth