The helos

What’s that thumpa-thumpa-thumpa resonating in the atmosphere? Yes, you’re right. We have Helicopter Parents incoming! Prepare the surface-to-air defenses!

“I am normally quite good with money,” says Felix, disembarking, “but a situation has come up that makes me feel like curling up in the fetal position.”

Our daughter has been living in Vancouver, and has decided that she does not want to settle there because of the high cost of living. She is 24, university educated and an only child. My wife and myself are trying decide whether to buy her a condo or house in Edmonton, where we live, and where she is moving to

I would appreciate your thoughts. I am 56, my wife 50. Our daughter is an only child.  We both will have small db plans. Net worth 7 mill (not including commuted values) invested in farm land and stock market, some  fixed income. No debts. We have the ability to pay cash for the property, but I worry about the message we are sending to her, and also that is 400k gone from the investment portfolio. Ultimately, she gets everything anyways. Thoughts?

You really want to know? By the way, what’s she coming home to Edmonton for, now that she’s finished with uni? If it’s a job, she should be able to support herself, and certainly doesn’t need to buy a house or (Dog forbid) a condo. Renting is fine. This is not the time to be acquiring anything in the Wexit-&-woeful capital city of AB.

Besides, why should you buy her property? The ‘message’ you’re sending is obvious. You consider her a child, a helpless appendage of yourself, someone who needs sheltering and protection. This is no way to build independence, which comes from confidence, which flows from experience. The sooner your princess can look after herself, pay her own rent and cell bill, the more she can cope with everything life has to offer.

By the way, don’t leave her seven million. She’ll be doomed.

Now to Cynthia, who’s trying to orchestrate a mortgage rate for her kid. Sheesh.

You mentioned in your blog that February may see lower mortgage rates. My son has a 2.7%, 5 year mortgage with 2 years left.   Should he shop around and lock in at 2.6 for 5 more years?  Not sure of the penalty… What’s your advice?

Yes, there is some downward pressure on long-term mortgages, thanks to the virus. But obviously Mr. Market has been reassessing that in recent days, so the bond market plop may end up being less of an issue.

Two thoughts for you: first, why on earth would anyone break a 2.7% mortgage in order to lock up at 2.6%? Are you nuts? Unless your kid has borrowed a couple of million bucks the payment difference will be negligible. Bad idea. Second, why are you even involved in your offspring’s loan rate? How do you even know what it is? That’s just weird. Please rotor out of here.

Next up is Lee, a Mom of three who is trying to get her children involved in finance. That would be a good idea, but they’re all infants. Hmmm.

“I have been a long time reader of your blog and it has helped my husband and I become less risk averse,” she says. “My only regret is that we wasted our 20s on GICs and cash funds. Ugh!”

Anyway, I wondered if you had any thoughts on “informal trust” funds?  We are tempted to set up accounts for our three children (aged three and under) and purchase ETFs in order to give them a head start. The cost to set up these funds/taxation rules are vague and I’m not sure if it is worth the hassle. We have maxed out our RRSPs, TFSAs, RESPs and have no debt.  Would it be smart to put our extra income into more ETFs for ourselves or pass it to our kids now?  That way they have a fund of cash that is legally in their name at age 18?

Thank you again for your “pathetic blog”.  We looking forward to your new posts everyday!

First, worry about you own financial stability and security. The best think you can do for small children is try not to screw up your life. No giant mortgage. No philandering or divorce. Keep working. And establish a joint non-registered account

Regarding the squirts, there’s no such thing as an informal trust account. No matter what [email protected] tells you. Something is a trust, or it’s not. There’s no middle ground. A true trust account is set up for a minor child (the beneficiary) since the kid cannot enter into a contract. You as trustee have a fiduciary responsibility to prudently manage the funds. If you do a lousy job, your kids will eventually be able to sue. That would be interesting.

The good news is a trust account can have any usage – not just for schooling, as with an RESP. The bad news is there’s no tax sheltering of interest or dividends – all income is attributed back to you, taxable at your marginal rate. Only unrealized capital gains stay with the child. Also the money cannot be taken back. Once in a trust it is permanently the property of the child, and must be handed over in its entirety when s/he reaches the age of majority. Is that what you want for an 18-year-old? BTW, if you refuse to  release the money, Junior can litigate. Finally, trusts cost money. Lawyers, documents, account-opening forms – and this cannot be done at the bank branch.

In short, Lee, fuggedaboutit. Did your parents give you a big no-strings pot of cash when you turned 18?

Didn’t think so. Thumpa. Thumpa.

92 comments ↓

#1 Tater on 02.03.20 at 3:54 pm

#150 Sail Away on 02.03.20 at 10:17 am
Tater, strange the way Tesla rose another 10% today and shares short reduced by 2.5M.

Wasn’t that not going to make a difference? Something about arbs?

Huh

—————————————————————

“Stock price bro” strikes again!

Still can’t name a single fundamental improvement in the business, can you?

And pretty sure the delta going from 94 to 97 on the converts isn’t the cause of this rally.

#2 Prairieboy43 on 02.03.20 at 3:58 pm

Solution for Helicopter parents. https://youtu.be/Na8n9Sz60K0

PB43

#3 NoName on 02.03.20 at 4:06 pm

#178 crazyfox on 02.03.20 at 2:36 pm

Obviously TSFA’s are a great tool for some. For people who are high earners or have a half mil cash or more lying around to invest, nothing is sweeter because they can take a portion of that cash and invest in stocks or ETFs and if they see nice gains keep it all tax free, bully for them.

I see what you did there, what happens if you have 3 or 5 kids, or maybe kids are below of age of 19, is a steel 1/4 mil?
You shod write for Newly licensed Canada’s Pravda…

#4 Dave on 02.03.20 at 4:06 pm

Giving money to your kids to help them get a leap start in life is a great idea in my opinion. Having to start from scratch takes too long and is painful.

#5 JSS on 02.03.20 at 4:08 pm

It is a great time to buy in Edmonton!
Malls are all full, people are still eating out, downtown has decent activity.
Cheap housing too!
Go for it!!!

#6 Linda on 02.03.20 at 4:29 pm

I was given a set of luggage the Christmas before I turned 18. By age 18 I was working full time & was living on my own. Parental support wasn’t an option. That was just the way it was & my situation wasn’t considered unique. Most of the kids I went to school with expected to start working as soon as they graduated from high school. If they did decide to go to college/university, most of them had to find a way to pay for that themselves via student loans (taking on debt) & by working whenever they could in between taking classes. Rural community, so living at home once you turned 18 meant working to pay for your keep. Whether that was doing work on the farm or working a job & paying rent to your parents was up to you.

#7 Sail away on 02.03.20 at 4:37 pm

#1 Tater on 02.03.20 at 3:54 pm
#150 Sail Away on 02.03.20 at 10:17 am

Tater, strange the way Tesla rose another 10% today and shares short reduced by 2.5M.
Wasn’t that not going to make a difference? Something about arbs?
Huh

—————————————————————

“Stock price bro” strikes again!
Still can’t name a single fundamental improvement in the business, can you?
And pretty sure the delta going from 94 to 97 on the converts isn’t the cause of this rally.

————————–

Ouch, that hurts.

Up 20% today; total return (for me) of 806.98%.

Love it. 8-bagger so far. Think it’ll make 10?

#8 Oscar on 02.03.20 at 4:41 pm

For someone who doesn’t have kids Garth, you offer up excellent advice. I couldn’t agree more with building their independence and confidence – worked well with our kids.

#9 Raging Ranter on 02.03.20 at 4:58 pm

$7 million net worth. No debt. Emails Garth for free advice.

If that appeared in the comments, we’d immediately assume it was satire.

#10 Raging Ranter on 02.03.20 at 5:00 pm

On the flip side, if said daughter should get married and then divorced some day, if the house is still in the parents’ name, it ain’t up for grabs in divorce court. Then again, I’m no lawyer; someone who is might want to correct me on that. It was just a random thought.

#11 Sail away on 02.03.20 at 5:03 pm

It’s good for kids to be involved in the family’s finances. The reason this is such a delicate subject with those who are bad with money is because they realize their own weakness and avoid it.

Our kids in university understand the family finances, pay their own bills and handle their own affairs. If they want to borrow money from us for a home in the future, we might set up an RRSP mortgage.

I think this has made them cautious about spending since we always do or buy the things we decide as a family, but often work toward these things slowly. So nothing is out of reach, but a plan is always needed to get there, and that plan does not include debt.

#12 Brett in Calgary on 02.03.20 at 5:09 pm

Today’s blog certainly reads as “first world problems”. Fetal position – excuse me – hahahaha!

#13 Ustabe on 02.03.20 at 5:16 pm

#4 Dave on 02.03.20 at 4:06 pm

Giving money to your kids to help them get a leap start in life is a great idea in my opinion. Having to start from scratch takes too long and is painful

I concur. If you have it to give why make your children wait until you pass?

Way back when $9-10,000 was a pretty solid yearly income my father gave me $5,000 (I think, long time ago). with a bit of work and a bit of luck I came out of that a couple of years later with (again I think) $37,000 in my pocket…a fortune back then. Bought me a two bedroom one bath house walking distance to the university and paid for 4 years of my and two years of my soon to be wife’s tuition, books, etc.

Plus enough to down payment my first restaurant, a pizza joint just off campus.

Fast forward and we gift our sons an advance on inheritance. In our family a gift once given belongs to the recipient, never to be used as leverage or as emotional ammo. They have turned that gift into two duplex homes, both living in property that actually makes them money. Real money too…I have seen the books. I believe the first one is now mortgage free although I’m not certain.

Add to that their careers are going real well and I firmly believe its because a bunch of stress and financial insecurity has been removed from their lives. I know their TFSA’s are full. They are 27 (twins!)

They say money doesn’t buy happiness but in my family’s case its come real close partially because of the sharing, giving. On both sides of the coin…so to speak.

#14 BlogDog123 on 02.03.20 at 5:16 pm

I always found it strange in Uni how many people phoned their parents every day from their dorm room, giving hour-by-hour details of their day… 25+ years ago…

I’d hate to be a residence admin today fielding calls from hysterical parents about how their kid is not getting along with their floor-mates.

I guess with Tuition/res/meals/fees/books costing $30k, there’s pressure not to screw this up, kid!

#15 CEW9 on 02.03.20 at 5:19 pm

#4 Dave on 02.03.20 at 4:06 pm

Giving money to your kids to help them get a leap start in life is a great idea in my opinion. Having to start from scratch takes too long and is painful.

* * * * *

It has been shown time and time again that the “pain” of being a poor young professional is incredibly instructive. Gifting vast amounts of money to a person who’s frontal cortex is not even fully developed is a bad idea.

#16 Black Swan on 02.03.20 at 5:39 pm

Is the corona virus the black-swan event people have been predicting for years?

The numbers are getting bigger everyday.

CCP can’t be trusted.

#17 FreeBird on 02.03.20 at 5:48 pm

Wish my parents had been helicopters (kidding) but being the fifth and a surprise it wasn’t in the cards. As dad said they were tired (from a man coming from a of much larger brood). Wish they’d known more about trusts before passing but were advised was the best way to leave an disabled adult sibling their share and have it managed by a trustee. We now have a friend in a similar situation with an adult brother who for reasons I won’t say will need someone to legally manage a large future inheritance. Mom’s been advised easier to put all into a trust and have interest given out 1-2x per year to all three adult kids to keep it fair and easier to manage. Friend’s wife also gets money yearly from large family trust. A lot of trusts in that family and much much larger then ours. Get advice from a good accountant and lawyer with second opinions if needed. Ideally before life gives you no choice. More posts this would be good.

#18 Disconnected from working class on 02.03.20 at 5:50 pm

A net worth of 7 mil with no debt?

Ok Boomer!

We always hear about most people being $200 away from bankruptcy. Well, if reading this blog all Canadians are millionaires and about 6.9 million dollars away from bankruptcy. People with the least money are in need of financial education the most.

#19 allovertheplace on 02.03.20 at 5:50 pm

I’m not sure what bothers me more, the older gens real estate tunnel vision or the younger gens doubling down on their parents mindset even though we no longer live in an economic climate where that makes any sense.

Seems to me that old stock Canadians have zero faith in their offspring. How else can you explain the willingness to assist in real estate purchases but not education or business creation?

Thank Dog for the immigrants! (https://www.cicnews.com/2019/04/new-study-finds-immigrant-owned-businesses-created-disproportionate-number-of-jobs-in-canada-0412234.html)

#20 Sail away on 02.03.20 at 5:56 pm

Understanding the value of a dollar is critical. We didn’t have an extra cent growing up, but my parents were pragmatic and frugal. We were always eligible for food stamps and free clothing as kids, although far too proud to accept.

Older bro was valedictorian and got full ride at U of Michigan, younger bro and I enlisted in the military, him in the Marines, me in the Army and paid university through the college fund.

Now all three of us have our own businesses (engineer, investigative journalist, undertaker). Our parents brought their pragmatism to investing and have had a fine run, although they made a number of mistakes they passed on to us as we were starting.

Is it best to learn through hard knocks? Tough to say. When you know you can make it with nothing, it can free you to attempt anything…

#21 Nonplused on 02.03.20 at 6:33 pm

Ah, if only we could all have first world problems like Felix.

If I had $7 million, I would probably consider starting to give my children some of the money before I died so I could hopefully impart some wisdom as to how to handle it. After all this kid is going to be inter-generationally rich no mater what, so she needs to start managing money now before the motherload comes. But putting strings on what she does with the money co-opts the point. What if she wants to invest it and rent? What if she needs a car and a ticket to Thailand? What if she wants another degree?

So the long and the short of it is that I agree with giving children money before you croak if you have a lot of it. Better to get the world traveling and soul searching out of their system before they have access to the whole pot. Yes, they could go prodigal and blow the whole amount. But hopefully they will learn something. It’s kind of like buying your kid their first bike. Once the training wheels come off you can’t ride it for them.

And ignore Garth’s advice not to give your daughter $7 million. I don’t understand the concept of intentionally withholding even in death from your children. I mean, with that kind of money don’t hold back on that new RV or world cruise yourself, you don’t owe her anything. But intentionally diverting what you haven’t been able to spend is just mean-spirited. It only costs 10% to buy your way into heaven so give that to charity but don’t send the message from the grave that you aren’t giving your children any substantial amount of money “for their own god”. They won’t see it that way.

#22 Paddy on 02.03.20 at 6:48 pm

If your kid(s) are irresponsible dumbasses, then F#$% that, but if they have a good head on their shoulders and appreciate the value of a dollar and are gonna do some good with it, then why wouldn’t you gift them some dough….why did you have them in the first place, to watch them struggle? Then again i’m not a parent, so what do i know….

#23 Dogman01 on 02.03.20 at 6:53 pm

Jared Kushner on CNN: “The era of economic surrender is over”.

https://twitter.com/i/status/1224046964645474305

For those of you in awe of the 1994 prescient predictions of James Goldsmith
http://www.youtube.com/watch?v=4PQrz8F0dBI

Trump’s 2016 win was about Jobs and the negative macro effects of poor trade policies …the 25 year “sucking sound” of good jobs leaving the US.

The last three decades US Elites have been gleefully sending those jobs overseas while retaining unfettered access to sell back into America. A western worker cannot compete with the “comparative advantage of an infinite labour pool . Leveraging this wage arbitrage, US elites interests have diverged from the general citizenry and the “common wealth”.

The average Americans can get a job now, Jobs – the miracle social program! Self-esteem, reduced divorce rate, reduce depression and mental health issues, displaces despair and drug addiction – a miracle universal good.

They see Trump understood that.

Trump has made America Great again for those whom were being left behind in this “new economy” – They will vote for him, nothing else matters.
https://townhall.com/tipsheet/bronsonstocking/2020/02/02/kushner-says-usmca-is-one-of-the-greatest-trade-deals-of-all-time-n2560574

#24 Nonplused on 02.03.20 at 7:09 pm

#15 CEW9 on 02.03.20 at 5:19 pm

“#4 Dave on 02.03.20 at 4:06 pm

Giving money to your kids to help them get a leap start in life is a great idea in my opinion. Having to start from scratch takes too long and is painful.

* * * * *

It has been shown time and time again that the “pain” of being a poor young professional is incredibly instructive. Gifting vast amounts of money to a person who’s frontal cortex is not even fully developed is a bad idea.”

——————–

While I agree that avoiding pain is not the objective of giving money to children when they are younger before their frontal cortex is developed is a bad idea, this comment shows exactly why people with inter-generational wealth should not be coming to this comment section for advice. Barron Trump is not going to have the same sort of problems as my son will, same as the Donald did not have the same sort of problems Nonplused did, but problems there will be. People that are going to inherit $7 million dollars do not need to know how to flip burgers and put in a good days work at the dry-cleaners. They need to learn how to manage money and do business. This isn’t necessarily going to be easy but for someone who was raised rich as say Barron or Trump the idea of losing it all is quite motivating and they work a lot harder than you would think to see that it doesn’t happen. I’m thinking that before Trump became President he was “with my mind on my money and my money on my mind” 24-7. He probably dreamed about business deals. And bankruptcy.

But a girl that is coming out of the gate with a sizable fortune doesn’t need the ““pain” of being a poor young professional” as a skill set. They need to know things right out of the gate that most of us can only hope to be skills we need to acquire later.

Denying your children their “birth right” “for their own good” is about as heartfelt as a reverse mortgage.

And I know a Felix, only in his case there are 3 generations of wealth that will be passed on in such a matter, hopefully to more generations to come. Once there is $7 million dollars in a single node in the family chain, no future generation should ever be poor again. A Garth ™ portfolio should all but guarantee that outcome. That portfolio should be kicking off $490,000 a year, compounding, so if other work is involved to pay the bills these people are on their way to generations of financial security.

What people need to understand is that the rich do have problems, but they aren’t the problems you and I tend to think about. In the same way that I do not need to know how to drive a race car because I don’t have one, if I did have a race car I better learn how to drive it, inter-generational wealth demands a different way of looking at things and a different skill-set and viewpoint. Rich kids need to know different skills than the rest of us.

#25 Yukon Elvis on 02.03.20 at 7:31 pm

I helped my kids a little bit when they were getting started on their own. I didn’t want them to have to struggle like I did. I have zero regrets and would do it again.

#26 Young Boomer on 02.03.20 at 7:36 pm

This is one of my favourite blog posts.

#27 Biggus Idiotus on 02.03.20 at 7:48 pm

Gifting money to children is not so black and white. Every child is different, and how the money affects them will depend on numerous factors relating to their values, choices, opportunities and natural gifts.

My grandfather grew up poor in the depression but did very well for himself. At our baptisms he gave each of his grandchildren $25k of shares in a bank he on the board of as a starter portfolio. Throughout our life he made sure we understood the purpose of saving and investing – taught us about dividends, how to re-invest them, and the importance of a balanced portfolio. When I turned 32, I had over $900k in that portfolio, including money I had contributed when I started working in my twenties. I’ve never needed a mortgage, and when I went through a health crisis and couldn’t work I was grateful to have saved and invested my whole life and not squandered the money I was given.

On the flip side, I’ll never know how my life would be different if I didn’t have that cushion to fall back on. Would I be more professionally successful? More stressed? Less risk averse?

I think my experience taught me that you can’t just give money to children – they need to be educated, guided and hopefully have certain values and responsibilities instilled along with it.

#28 Apocalypse2020 on 02.03.20 at 7:50 pm

With Chinese markets losing so much today, the economic impacts are now very sobering. Here is one very clear warning.

“Don’t buy the dip”

Watch for “accelerating sudden stop dynamics”

https://www.cnbc.com/2020/02/03/why-central-banks-may-not-be-able-to-save-china-from-the-coronavirus.html

Invest money instead in supplies you will need in order to have a chance to survive the next two years.

PREPARE

#29 Alberta Boy on 02.03.20 at 7:54 pm

Felix, would you be interested in adopting a 40 year old guy from Lethbridge? I have already learned to appreciate what I have so you can give without the fear of spoiling me. We can play catch, go to a game, etc.

#30 yorkville renter on 02.03.20 at 8:21 pm

My parents visited me 3 times, total, over undergrad and grad school. I was absolutely OK with it too

#31 yvr_lurker on 02.03.20 at 8:39 pm

#27 I think my experience taught me that you can’t just give money to children – they need to be educated, guided and hopefully have certain values and responsibilities instilled along with it.

————————-

#21 And ignore Garth’s advice not to give your daughter $7 million. I don’t understand the concept of intentionally withholding even in death from your children. I mean, with that kind of money don’t hold back on that new RV or world cruise yourself, you don’t owe her anything. But intentionally diverting what you haven’t been able to spend is just mean-spirited.

———————————–

I agree with both of the above completely. You want to educate your kid about the value of $$, having patience, and to show them the joy of finding a profession that you enjoy going to every day (like me) and that you are willing to work hard for.

That being said, there is no need to have the next generation struggling for no reason when there are resources from the previous generation to help out and let them get a solid footing (not cover completely but to help out). When I pass on, every single cent of what I have will go to my family. I don’t see the point of working your entire life to save 5Million or whatever, and not to leave this to your kids. We are not the Egyptians and you can’t bury it in a tomb? Give it to charities? Nope; Charity in my view begins (and mostly ends) at home.

#32 j on 02.03.20 at 9:19 pm

#13
I like your way! People are here to help people, be it parents helping children or otherwise…
It’s better to help kids when they need it the most…

#33 Nordic Lover on 02.03.20 at 9:21 pm

Here’s a suggestion for all helicopter parents (and all U.S. policy makers). Read “The Nordic Theory of Everything (in search of a better life)” and follow the nordic way.

#34 Katherine on 02.03.20 at 9:30 pm

#31 yvr_lurker
I agree with both of the above completely. You want to educate your kid about the value of $$, having patience, and to show them the joy of finding a profession that you enjoy going to every day (like me) and that you are willing to work hard for.

Totally agree lurker. My children received more $ than I was given by my parents. I wanted to make life easier for them. They were also taught the value of the $ and contributed financially to their post-secondary education. Both my children launched quite well into careers and adulthood.

And it’s not only money that i like to be generous with. Now that I’m retired, I have time to help out my daughter with newborn son. I remember how much I would have loved to have had a family member give me a break when kids were little. And it is definitely appreciated. And I also have more money than I need so would rather share it with kids while alive.

#35 Katherine on 02.03.20 at 9:31 pm

#31 yvr_lurker
I agree with both of the above completely. You want to educate your kid about the value of $$, having patience, and to show them the joy of finding a profession that you enjoy going to every day (like me) and that you are willing to work hard for.

Totally agree lurker. My children received more $ than I was given by my parents. I wanted to make life easier for them. They were also taught the value of the $ and contributed financially to their post-secondary education. Both my children launched quite well into careers and adulthood.

And it’s not only money that i like to be generous with. Now that I’m retired, I have time to help out my daughter with newborn son. I remember how much I would have loved to have had a family member give me a break when kids were little. And it is definitely appreciated. And I also have more money than I need so would rather share it with kids while I’m alive.

#36 Boris Corbyn on 02.03.20 at 9:32 pm

#18 Why do you come here?

Don’t you have a teacher strike to attend? Or a hockey match to watch?

#37 jsto on 02.03.20 at 9:35 pm

#25
Well done!!! I applaud you!

#38 CJohnC on 02.03.20 at 9:36 pm

#16 black swan

I think not. If you extrapolate the total infections in China (20438) and deaths (425) against the population (Hubei province 58,000,000 or China 1.4 billion) the percentages of both infection and deaths is infinitesimal. If you add in another 188 infections and 1 death for the rest of the world against the world population it is even more so. Plus you still only have a 2% death rate

The black swan event will be if the bird flu (H5N1 50% death rate) currently in Hunan province, or the swine flu (H1N1 less than 10% death rate) currently in Taiwan gets together with the Coronavirus in a mutation. Neither bird flu nor swine flu jump to humans easily but combined with the Coronavirus it would be a disaster. Hopefully this is not possible.

#39 Foggy on 02.03.20 at 9:39 pm

I think people don’t realize the differences between the past and now. If they did they would understand (still not agree with) parents who give their kids money and/or parents who still have an adult child in the basement.

First, families were much larger then they are now. My mom is the oldest of 12, my dad 8. There was no huge pot of money to spoil all these kids. Certainly no room to have them stay in the house as adults. The average family size in Canada now is around 2. I think it is actually 1.85 kids per woman if I recall. Much smaller families, easy for parents to cater to one or two kids. Including letting them stay at home till there are 30!

Second, money was more scarce, or should I say ‘debt’ was more scarce. People didn’t have the access to debt like they have now. Car loans, credit cards, payday, mortgages, LOC etc., etc., etc. Every financial vehicle possible make you a debt slave, making it easier to cater to the kids.

Old days = more kids and families with less money
Today = less kids and families with more money including debt.

A few years back I was speaking with a couple and their adult child was moving back into the family house and working
Curious I asked how much they were charging for room and board? They were shocked, looked at me like I was some kind of child abuser!

One of the greatest gifts (among many) that parents taught me was a great work ethic. It never crossed my mind that my parents owed me anything. When I was in my early 20s, working and living at home, I paid room and board. I believe it was $100 a week and it included everything, food, utilities, meals cooked, laundry done etc. This was in the early 90s. I never begrudged my parents. Thought it was perfectly acceptable. Plus I thought it was a good deal, even back then and I still do and I had to help out on the farm during my non-working hours as required. No pay. Still thought it was a good deal and remember my life back then and smile. We were all happy.

Anyway, enought rant.

#40 CJohnC on 02.03.20 at 9:41 pm

A great link for uptodate info on the Wuhan Coronavirus

https://www.worldometers.info/coronavirus/

#41 Nonplused on 02.03.20 at 10:02 pm

#31 yvr_lurker on 02.03.20 at 8:39 pm

Bill Gates and Warren Buffet are both on record as saying their children aren’t getting their billions, it is going to charity. They implicitly imply that these charities could figure out how to spend the money better than their children could given some coaching. If I were Bill’s kid, I would not attend his funeral. Bill is basically saying “there is no way in hell my kids could steward this wealth I built. It must be turned over to strangers and government.” I guess when you are Bill Gates it is hard not to be arrogant, but that is something. You don’t think kids can learn to be charitable? There are many charitable organizations that are stewarding great wealth that came down the family and still being stewarded by the family.

#42 Long-Time Lurker on 02.03.20 at 10:40 pm

#69 Flop… on 02.02.20 at 6:41 pm
#58 Long-Time Lurker on 02.02.20 at 5:52 pm

Flop, are you still here?

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

Hey Lurker, yes still here…

…I have time for the daily lessons and laughter.

I have no time for plagiarism, misrepresentation and scuzzy people…

>Nice to hear from you, Flop. Just watch the blood flow from the rafters.

#157 Smoking Man on 02.03.20 at 10:59 am
#58 Long-Time Lurker on 02.02.20 at 5:52 pm
This is late but welcome to The Thunderdome, Ryan L!

Smokey, how ya doing? Flop, are you still here?
………………

Getting Stronger.

>Better spelling, too! ;)

#43 Blue Lobster on 02.03.20 at 10:44 pm

#27 Biggus Idiotus on 02.03.20 at 7:48 pm

This is one of the best anecdotes I’ve ever come across about the power of intergenerational wealth crossing paths with the power of compound interest over a long time horizon. Your grandfather had the the foresight to invest for your future. You had the brains to listen to his advice (based on what you’ve stated in your comment above) and to let the money compound, instead of spending it.

May I ask if your siblings/cousins made equally smart decisions about not squandering your grandfather’s gift? I would be curious to know if they learned the lesson as well as you did.

Again, kudos to your grandfather for thinking long-term and doing what he could to set his grandchildren on the path of financial comfort.

#44 Rargary on 02.03.20 at 11:53 pm

Daughter of a famous biz man who’s done tons of commercials in the big smoke, divorced and went after her hubby’s dad’s comdo she and her hubby lived in, and won! Dad didn’t live there. She even got the pictures on the walls! She didn’t need the money. She just wanted “her share”. THINK TWICE B4 BUYING A HOME FOR YOUR RUGRAT! EVEN IF IT’S IN YOUR NAME… AN EX-SPOUSE WILL TAKE IT

#45 Al on 02.04.20 at 12:16 am

With all this they might become president, Prime Minister or worse (finance Minister). Doomed.

#46 Ponzius Pilatus on 02.04.20 at 12:23 am

Watch the SuperBowl half time show.
And know why Trump will be re-elected.

#47 Shaved Ape on 02.04.20 at 1:18 am

BANNED

#48 Re no 8 oscar on 02.04.20 at 1:19 am

DELETED

#49 Jager on 02.04.20 at 1:37 am

Ontario investigating 26 potential (100’s now infected…soon to be thousands?) coronavirus cases
https://torontosun.com/news/provincial/confirmed-coronavirus-cases-stay-at-3-29-under-investigation

Do try to rationalize the Canadian governments decision (socialist insanity) to allow 1000+ passengers from China to simply walk off their planes in Canada’s largest city (Toronto) to potentially infect their loved ones, respective community and finally the balance of the country. Note: The hospital system (staff, resources & facilities) across the country are already stretched thin.
‪https://torontosun.com/news/local-news/warmington-thousands-unchecked-for-coronavirus-at-pearson‬

-Must Read-
Harry Chen
Phd Socioeconomics
(English – VPN Twitter Account)
https://mobile.twitter.com/IsChinar/status/1224440904879992842

Lancet Study Warns: “Self-Sustaining Outbreaks in Major Cities” Around the World “Inevitable” Because of Symptomless Coronavirus Carriers
https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)30260-9/fulltext

#50 Bagram Nazooul on 02.04.20 at 4:39 am

BANNED

#51 crowdedelevatorfartz on 02.04.20 at 5:30 am

@#28 Apocalypse2020
“Invest money instead in supplies you will need in order to have a chance to survive the next two years.”

+++++
2 YEARS!
I wont have enough room for anything else in the bunker except toilet paper.
Priorities…..

#52 crowdedelevatorfartz on 02.04.20 at 5:40 am

Ontario Teachers strike getting nasty?
Or people finally waking up to the fact that their children and used as bargaining chips…….

https://www.thestar.com/politics/provincial/2020/02/03/mystery-group-attacks-teachers-unions-in-newspaper-ad.html

“Its about the kids”

Apparently two can play at that game….

Time to revoke Teachers ability to strike?
Render them as an essential service?
Force both groups into binding arbitration?
The endless bottomless well of taxpayers funding might be running dry.

#53 just snootin' on 02.04.20 at 6:15 am

Lee, a Mom of three,

The best thing i did for my kid financially was to buy him a little black book when he was about 5. I told him to write in the money he recieves (birthdays, allowance, odd jobs) on one side, and write in the money he spends on the other side. When he saved enough we would take it to the bank and make a deposit. Some he kept in a float at home.

He kept that book, and eventually needed another one. When he graduated he had built up the resp we started, had an rrsp, and a tfsa…all on his own. His post secondary school was paid and he spent three months Europe. Now he uses software, but he remembers his little book.

The other kid did not use his little black book, I think he drew in it. He is broke.

#54 under the radar on 02.04.20 at 6:33 am

There is a lot of truth to Garth’s message, but using money to make life easier for children is a pleasure parents get from giving.
By the way, a net worth of 7 mil is nice if your in your 50’s but it does not permit lavish spending on a sustained basis , if you intend to keep it.

#55 MF on 02.04.20 at 8:11 am

My parents taught me the same thing. Save, work hard, delay gratification, when you have earned it..you buy.

Unfortunately this type of logic doesn’t work anymore. Anyone “saving” has been left behind by those more reckless and who go in debt.

The System is broken, and has been broken for some time.

Hey I heard the bank of Canada is debating reducing the interest rate. Brilliant.

MF

#56 Biggus Idiotus on 02.04.20 at 8:36 am

#43 Blue Lobster on 02.03.20 at 10:44 pm

I think I can say that none of us live extravagantly, and we all have most of that money still intact. If we spend it, it is on educational opportunities or experiences.
We all work, but as human beings I think we are complex and driven by our individual needs and upbringing, the good and the bad. When people generalize ‘trust funders’ as lazy or spoiled, I they are being naive. I grew up with some who went on to become captains of industry, social workers, farmers, ski bums, and some are sad alcoholics. Money, and our perception of it, is just one of many variables that make us who we are.

#57 crowdedelevatorfartz on 02.04.20 at 8:53 am

US family farm bankruptcies up.

https://www.fb.org/market-intel/the-verdict-is-in-farm-bankruptcies-up-in-2019

#58 Dharma Bum on 02.04.20 at 9:20 am

Giving money to kids with no strings attached?

Hmmm…depends on the kids.

Assuming, of course, that there is tons of money to give (i.e., it wouldn’t make a dent in the financial situation of the parents).

If the kids are dick heads, then screw ’em.

On the other hand, if the kids are decent, hardworking, reasonable individuals, and the parents are in a position to help, I see no harm.

It’s a discretionary situation.

The best thing to do, however, if parents have significant disposable income by which to help their children, is to TEACH THEM HOW TO INVEST.

I agree that buying them a condo is stupid.

A good idea is to match the kids’ money (at some particularly appropriate ratio) in a prudent investment plan.

If the parents find out that money is being frivolously pissed away, then the tap gets turned off.

Educating children about financial investments is the best way to ensure their long term financial success. Some help in that regard would go a long, long way.

https://quoteinvestigator.com/2015/08/28/fish/

#59 Sideshow Rob on 02.04.20 at 9:24 am

#38 CJohnC

That’s not quite how this works. Deaths occurs on average 10 days after the infection is confirmed. That means you have to compare the current death number to the infected number from 10 days prior. This gives a much different result.

#60 Not So New guy on 02.04.20 at 9:44 am

Just a question.

Why do public employees get extra pensions at all? Isn’t the CPP adequate?

For many of us, if we don’t bust our behinds to save, the CPP is the only pension we will see. Why do our ’employees’ get to leap ahead of us? I think government is one of the few jobs where employees end up retiring much wealthier than their ‘bosses’

Maybe the government would work a little harder to boost our pension if it was the only one they had to collect also.

I think too that if an MP’s wage was the median of the region he represented (and maybe double for the PM) they would work pretty hard to raise those median wages for their constituents

This should be the same for all jurisdictions that politicians represent

#61 AndrewToronto on 02.04.20 at 9:52 am

Garth, I like your blog but I feel like you are a bit out of touch with what middle age and younger people are going through these days. People are priced out of real estate…I’m a renter with a 2 year old. My family has focused on investing and building a portfolio. The unit we rent is cheap cause we have been in it for 10 years a one bed and den. The minute we move and assuming we don’t move into an apartment we will be faced with aggressive landlords that can legally take rent up 10% with the new rules or “move a family member in”. and yet in this post you are against helping your child with inheritances and helping with a place or a trust fund. How about making sure there is no student debt? Totally disagree with you on this one. I plan to teach my kid about finances but will give my kid every advantage possible. Look at what’s going on with the education sector? Will I have to send my kid to private school so that they don’t get mediocre education. Maybe. I’m in the camp that says help and educate… But I definitely agree with the need to teach them independence

#62 crowdedelevatorfartz on 02.04.20 at 9:56 am

Gee I wonder how Mr Bailout Lawrence Stroll is feeling dumping $240 million into Aston Martin

https://www.insidehook.com/daily_brief/vehicles/aston-martin-bailout-lawrence-stroll

a few days before the British Parliament decides to go “all electric” in 15 years…..

https://business.financialpost.com/pmn/business-pmn/electric-future-britain-to-ban-new-petrol-and-hybrid-cars-from-2035-2

#63 Sail away on 02.04.20 at 10:33 am

#1 Tater on 02.03.20 at 3:54 pm:

“Stock price bro” strikes again!

Still can’t name a single fundamental improvement in the business, can you?

And pretty sure the delta going from 94 to 97 on the converts isn’t the cause of this rally.

————————–
#7 Sail away on 02.03.20 at 4:37 pm:

Up 20% today; total return (for me) of 806.98%.

Love it. 8-bagger so far. Think it’ll make 10?

———————-

Up another 12.3% today. 918% total return.

Go, go, go 10-bagger!

Tater, if this is doing it wrong, why does it feel so right?

#64 Shawn Allen on 02.04.20 at 10:41 am

The Stock Markets and the Coronavirus

Today’s message: What virus? What crisis? What slow down?

#65 IHCTD9 on 02.04.20 at 10:43 am

I think if our boys remained single into adulthood, we would help them out if needed, both are responsible intelligent kids.

Married or common law? Sure as hell won’t be any early inheritances under those circumstances, but maybe a little bit here and there. They’ll have to wait till we pass on if they shack up – in Ontario, inheritances are not divisible in divorce court.

Don’t hate, I didn’t make the rules, I’m just playing the game.

#66 Linda on 02.04.20 at 10:44 am

#60 ‘Not’ – have you gone online & read about what you will receive via CPP? Have you read & understood the rules? In answer to your question, CPP is definitely not ‘adequate’ by any means. It was originally designed to replace roughly 1/4 of your working income upon retirement. With the changes made, when the Millennials reach retirement it may replace 1/3 of working income. Could you survive in retirement on 1/4 or even 1/3 of what you make today? I will note these number are based on taking CPP at age 65 & also qualifying for maximum CPP. Most do not qualify for maximum CPP because they either didn’t work enough years or didn’t contribute maximum amounts for enough years. Surprise!

#67 IHCTD9 on 02.04.20 at 10:58 am

#61 AndrewToronto on 02.04.20 at 9:52 am

Garth, I like your blog but I feel like you are a bit out of touch with what middle age and younger people are going through these days. People are priced out of real estate…
___

No, younger people are not priced out of real estate.

You are because you live in Toronto, but that’s your decision, and your bed to lie in.

I would not expect my kids to start asking me for a bailout because they made bad choice. I’d rater let nature provide the lesson, she teaches best.

#68 Fran on 02.04.20 at 11:08 am

It’s fine to help out your children a bit with some inheritance money but I plan to donate most of mine to creating scholarships for deserving students. I’d rather spread the wealth than have it passed down from one generation to the next. My children are hardworking and frugal and we’ve made sure they graduated without any debt. How they fair from here is up to them. It’s the same reason I’ve taught them to cook and clean and be resourceful. Some people call me a selfish mom for not doing everything for them, but I see it as building character. Just because we can afford to indulge them doesn’t mean it’s in their best interest.

#69 yvr_lurker on 02.04.20 at 11:12 am

#41

————-

There is a big difference between 5Mill and 5Bill. Bill Gates and his wife have been really generous with their donations to all sorts of worthy charities and initiatives. However, with a 5Million inheritance saved through years of hard work and frugality, I don’t think it is reasonable to give 50% of it away to some charity, and not leaving it to your kids. If you are the first generation that has made it up the ladder somewhat, throwing yourself and your family back off the ladder is not what I would do.

For that matter, If I did not have kids, there would be little incentive to try to stash away a large sum for my death. Have enough to live on comfortably in old age and spend the $$ on travel, experiences, volunteering, etc… the incentive to try to amass any large sums is greatly reduced. Find a job you love (even at a reduced pay) and use your leisure time to pursue non-monetary things that you really enjoy….. much simpler…

#70 Ronaldo on 02.04.20 at 11:34 am

#68 Fran on 02.04.20 at 11:08 am
It’s fine to help out your children a bit with some inheritance money but I plan to donate most of mine to creating scholarships for deserving students. I’d rather spread the wealth than have it passed down from one generation to the next. My children are hardworking and frugal and we’ve made sure they graduated without any debt. How they fair from here is up to them. It’s the same reason I’ve taught them to cook and clean and be resourceful. Some people call me a selfish mom for not doing everything for them, but I see it as building character. Just because we can afford to indulge them doesn’t mean it’s in their best interest.
—————————————————————
Totaly agree Fran. Well said.

#71 Not So New guy on 02.04.20 at 11:36 am

#66 Linda on 02.04.20 at 10:44 am

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

I agree with you. My point was that this is the only pension many Canadians will get. This is even truer if you are any generation after the boomers. That is when most pensions were eliminated in the private sector except in the very high end companies.

So why are these people discriminated against relative to government workers?

I don’t agree with pensions per se in the public (because they funds are too big a plumb for the government to resist) except that many people do not have the ability to handle money properly and so this is a life saver for them. If the government weren’t providing this stipend then I’m sure the private sector would take up the slack.

I’m pretty sure though that if government workers were not getting a benefit ahead of other Canadians, there would be a stronger push to improve the retirement system for all Canadians. I think government worker pensions are there to keep the office workers quiet and keep the rabble from rising

#72 Penny Henny on 02.04.20 at 11:41 am

#9 Raging Ranter on 02.03.20 at 4:58 pm
$7 million net worth. No debt. Emails Garth for free advice.

If that appeared in the comments, we’d immediately assume it was satire.
??????????????

Could it be Shawn Allen?
;)

#73 Not So New guy on 02.04.20 at 11:41 am

P.S.

And when I talk pension, I’m including the OAS and all the other bells and whistles too even though they are not technically part of the pension. Basically, what you net out of the government when you retire

#74 kommykim on 02.04.20 at 12:08 pm

#60 Not So New guy on 02.04.20 at 9:44 am
Just a question.

Why do public employees get extra pensions at all? Isn’t the CPP adequate?

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

Most people would whine and complain if the government took the same pension amount, plus CPP, off their pay cheques like they do with public servants.
In 2018, I paid around $2600 in CPP plus $8100 in pension on apx $78K of gross income.

#75 Sail Away on 02.04.20 at 12:30 pm

#72 Penny Henny on 02.04.20 at 11:41 am
#9 Raging Ranter on 02.03.20 at 4:58 pm
$7 million net worth. No debt. Emails Garth for free advice.

If that appeared in the comments, we’d immediately assume it was satire.
??????????????

Could it be Shawn Allen?
;)

——————————–

It’s probably Shawn Allen being modest and reporting 1/4 his actual wealth so as to fit in here.

#76 IHCTD9 on 02.04.20 at 12:33 pm

#69 yvr_lurker on 02.04.20 at 11:12 am

For that matter, If I did not have kids, there would be little incentive to try to stash away a large sum for my death. Have enough to live on comfortably in old age and spend the $$ on travel, experiences, volunteering, etc… the incentive to try to amass any large sums is greatly reduced. Find a job you love (even at a reduced pay) and use your leisure time to pursue non-monetary things that you really enjoy….. much simpler…
___

I agree. I won’t be retiring with multi-millions, but the reality is between Ms. IH and I, outside our savings – there would be enough to get by comfortably (I think. Probably… maybe).

If we don’t spend the portfolio principal, I don’t care – the kiddies get whatever’s left. If I had no kids, I’d be more inclined to spend more in the present at the expense of investing for later – even if that’s not the best financial decision I could make.

#77 Sail Away on 02.04.20 at 12:35 pm

#74 Elon the Rocket man on 02.04.20 at 11:51 am
TSLA going to mars……… ride that rocket

——————————-

Yep.

And a second investing tip for Tater: last week, you suggested I leverage Tesla since it had such momentum. If you took your own advice, you’d have a new Audi now.

Stick with me, Tater, and one day you’ll succeed.

#78 Scott on 02.04.20 at 1:18 pm

@23
Trump used to trash Obama for the phony unemployment numbers (he was right). He now uses that same # to boast after rightly pointing out how it doesn’t include people who have given up on finding work.

What made America great was that you used to be able to drop out of high school and be able to get a job (a career even) to support a family. That ain’t coming back any sooner then Trumps tax cuts start “paying for themselves”.

#79 Clara on 02.04.20 at 1:29 pm

Going for the hero’s journey, as Garth suggests, may be actually harmful to a young girl, more sensitive and vulnerable to stress than a hero. She might become too focused on survival instead of getting work that feels good to her long term. It all depends, and the best solution can be worked out by the family together.

In my experience the exact opposite of what Garth is concerned about, holds true. Children given support at the start, have progressed faster than the ones who had to do it all on their own. Each parent knows their child best.

#80 Piano_Man87 on 02.04.20 at 1:38 pm

#19 allovertheplace on 02.03.20 at 5:50 pm
I’m not sure what bothers me more, the older gens real estate tunnel vision or the younger gens doubling down on their parents mindset even though we no longer live in an economic climate where that makes any sense.

What bothers me is there’s almost zero room for house prices to go up anymore. Wages on average aren’t keeping pace with inflation. Canadians have record high personal debt, and household debt. 1 in 2 are $200/month away from not making ends meet. The IMF says of developed nations we have the highest house price to income ratio in the world.

Since interest rates are so low, when the next recession hits, when they drop rates will that keep the housing market afloat I wonder? Or will it get hit hard, as laid off workers are forced to sell, and there isn’t enough financial incentive for new buyers to buy those homes?

#81 CJohnC on 02.04.20 at 1:48 pm

#59 Sideshow Rob

You are much more likely to get infected and even die from good old fashioned annual influenza than Coronavirus. Worldwide, these annual influenza epidemics are estimated to result in about 3 to 5 million cases of severe illness, and about 290 000 to 650 000 respiratory deaths.

Coronavirus has become a thing because China was not a forthcoming as it should have been in the beginning and actually tried to hide it apparently, and because of a much bigger digital media and social media presence than in the past.

#82 Blacksheep on 02.04.20 at 1:50 pm

Net worth of 7 mill and it’s suggested they shouldn’t help their offspring acquire RE?

That she should instead rent?

This, is very bad advise.

This blog has swung hard to:

-Real Estate ownership, bad.
-Portfolio investment, good.
-Taxing the very wealthy harder, bad.
-Taxing sold personal residences, good.

Talk about transparent….

Learning independence, good. Being proud of it, even better. Not being subsumed by your parents, best.- Garth

#83 Reynolds753 on 02.04.20 at 2:06 pm

I have been following this blog for a few years and I have never posted. This will be my first time. I grew up in Toronto in a very working class family. Both of my parents were Irish immigrants with the equivalent of grade eight education and no particular skills. They lived very much pay cheque to pay cheque. I put myself through university (a few scholarships) and subsequently, medical school. I had no parental help whatsoever. I struggled at times and lived a very austere life at the time. I made a pledge to myself that if I ever had childen who wanted to pursuit a post graduate degree, I would help them. I immigrated to the USA in 1989 (I could not find a suitable position in Canada with my sub-specialty training in Canada). Fast forward and I had a daughter who wanted to attend law school in 2015. She was very concerned about the cost. Law school is expensive in the USA. I told her to apply to wherever she wanted and that I would foot the bill. She decided to go in state (big saving) and was given a small scholarship (it all helped). This was my excuse to keep working. She graduated in 2019 debt free and is now clerking for a state supreme court justice. She has a good position lined up with a law firm when she finishes the clerking. I have absolutely no regrets in helping her out.

She did work in the summers and I would contribute to her Roth-IRA (akin to a TFSA) to the max. I will do the same this year. Why not do this? It is a good way to pass money on to the next generation. It has also taught my daughter about the value of saving in a tax free vehicle. I trust her to leave it alone for as long as possible.

I view all of this as giving money to a child for a worthwhile endeavour. I am in the fortunate position to be able to have helped her and the ultimate reward in this is beyond any cash value. I suspect that each person’s relationship in terms of finances varies with each child, all this said.

#84 Linda on 02.04.20 at 2:06 pm

#71 ‘Not’ – I hear you, but first, the pensions of public employees was a negotiated item of employment. Further, those workers can’t opt out of the pension plan. As for discrimination, keep in mind that anyone with a workplace pension in addition to CPP must pay into both plans – #75 ‘Kommy’ gives an example. The funds paid into the pension plan are deducted off any RRSP contributions so if you could contribute say $10K in the current pension year but paid $8K into your workplace plan, your allowed RRSP contribution would be $2K. This is called the ‘pension adjustment’ & is meant to ensure a level playing field. So one could argue that the public employees only advantage pension wise is that their deductions are mandatory, just like CPP is. So they are ‘forced’ to save. The big difference between those with public workplace pension plans & those whose only plan is CPP plus whatever they contribute to an RRSP/TFSA is that the funds in the RRSP/TFSA are not generally used as a political football. If your funds grow in the RRSP/TFSA, the government doesn’t decide that any surplus should be used for other purposes. Nor do they use your RRSP to pander to special interests. For example, the Alberta government has seized control of all public pension plans, with the stated intent of using those funds – plus the CPP contributions of all Albertans if they can get control of them – to ‘invest’ in Alberta, which insofar as they are concerned is the oil & gas industry. They have already via AimCo ‘invested’ in the LNG project in Kitimat using public pension funds. This was not done in consultation of the fund contributors; certainly consent wasn’t part of the equation. Good if it does end up being a reasonable ROI, not so great if it crashes & burns. The pipeline is still being built & yes, there is still opposition by various parties to it going through. Guess whose pension fund will be diminished, possibly even end in a deficit situation, if there are other ‘investments’ that are losses instead of gains? I’ll add that those funds were in a surplus situation – after years of increased contributions to pay off deficits by the plan contributors – when the recently elected government enacted legislation to force all public pension plans to fall under the control of AimCo – which, surprise! – is under the control of the Alberta government. As for the Alberta taxpayer being on the hook for any deficits, not so. There was legislation passed by the government back in the 1980’s that specified that any public pension plan shortfall would not be the responsibility of the government to make up. Throw in the AimCo ROI track record – a princely 2.3% over the past 3 years when markets have been stellar to say the least – one might see why plan members are less than happy with what the government has done.

So you are correct, the government can hardly be trusted to keep their hands off such juicy plums as public pension plans. I’ll add that taking away from the ‘haves’ will in no way improve the lot of the ‘have nots’. All it will do is increase the competition for whatever benefits might still be available. Also, once you have legitimized doing this to one group, everyone else becomes fair game in turn. Surprise!

#85 Not So New guy on 02.04.20 at 2:18 pm

#75 kommykim on 02.04.20 at 12:08 pm

I’m sure you’ll get all that back and much, much more

#86 useless on 02.04.20 at 2:26 pm

Hey Garth, whats your opinion on high dividend covered call ETFs. High expense ratio but they do well when the market is trading sideways. Limited upside in bull markets though. What do you think?

#87 Annick Dotal on 02.04.20 at 3:33 pm

Linda #85

Excellent explanation!
………. and I’m not a public servant.

#88 Almost A Rock Star on 02.04.20 at 9:25 pm

My father came to Canada from Ireland when he was around 17 and started out with zeros across the board. Worked 2 and 3 jobs to pay his way through university and ended up a few years later in a fairly high profile career with the federal government, travelling around the world dealing with diplomats etc.

When he took early retirement at 60 after 30 years with the government he had no investments at all, and no savings to speak of either. He was all about living for the moment.

Having said that, he was a great guy. He just didn’t believe helping kids financially was the right way to teach them to fend for themselves. He did help my brother and I a couple of times with around $2,000 or so each, and that was more than generous IMO.

Unfortunately, 5 years after retiring (almost to the day) he passed away from cancer. I guess his motto of living for the moment was the right choice.

My brother and I both ended up turning into financial disasters compared to almost everyone in our age group, but that’s because we made bad career choices (music). If our dad had helped us out more, I doubt that would have made any difference.

I can’t speak for my brother, but I take full responsibility for my lot in life. I suppose if parents can afford it, then great, give your kids a good head start. I don’t have kids, just a great dog. She gets spoiled, but that’s another topic for discussion. :)

#89 William R Drury on 02.04.20 at 10:53 pm

Mr. Broker Man you know Trump charges proved when
there are no actual charges. Again you suffer from an
extreme bias against Trump. Must be nice being all knowing.

I said the market believes he will be re-elected. You Trumpers are infected. He is a deeply flawed person and was impeached. The Rush medal is a disgrace. But he will likely prevail in a time when the alternatives lack. – Garth

#90 john m on 02.05.20 at 12:37 am

Great advice to Felix

#91 Linda on 02.05.20 at 12:12 pm

#88 ‘Annick’ – thank you. What worries me about the pension plan debate is that the true issue is that there is little to no pension plan legislation to protect pensions in Canada. Far too often plans are underfunded due to pension ‘holidays’ granted to the employer by the very government that is supposed to protect the interests of its citizens. The only province where I am aware of that has any legislation to protect the rights of pension plan members is Ontario. As I understand it the protection is very minimal, but at least there is some. There definitely should be protection in place, as employees of Air Canada, Sears, Enron, Nortel, Stelco etc. could attest.

Regarding the possible expansion of attack on public plans to private ones, in Alberta under the previous PC government – just six years ago – there were two bills introduced. Bill 9 was meant to impose changes on public pension plans. Plan members were going to pay higher contributions, receive less in benefits, change the rules on when one could retire with an unreduced pension & more. Predictably, not a few members of the public cheered the proposed legislation. I expect they missed (as did the majority of the public) the concurrent announcement of Bill 10. This was proposed legislation to apply to all private pension plans within the province of Alberta. It made Bill 9 look good in comparison. Some of the proposed items under Bill 10 were to give the plan operator (the employer) unilateral rights over any plan surplus. They could use it as they chose without recourse from plan members. There were some charming clauses that permitted the plan operator to change pension plan provisions at will – AND apply those provisions retroactively. Your plan was DB? Now it is DC. You are retired? Too bad, your pension can now be reduced & BTW, it is now a DC plan. Your previous contributions were X? Now they are Y & BTW, you need to pay higher contributions because those rates should have been paid 5, 10, 15 years ago. You are in arrears, so pay up. If you don’t like it, I now have the power to wind up your plan & your consent isn’t needed.

Oh yes, Bill 10 would have permitted all of the above to occur. As I said, most of the public had no idea that legislation was even on the table. The press conference where Bill 9 & 10 were announced went kind of like this ‘rat-ta-dah-dah-dah-da, yadda-yadda-yadda, government employees will get their comeuppance, yahoo, yahoo, Bill 9, Bill 9, Bill 9, razzle-dazzle & oh, yes, we are also introducing Bill 10.’ This is how government sneak in those announcements that would cause the public to rise up & riot. And when that oblivious public does find out & complains they were not told, said government smugly points to the announcement of the offending legislation, buried in the rubble of an omnibus bill or flashy news conference where the focus was on the ‘exciting’ part. Surprise!

#92 Ronaldo on 02.05.20 at 2:29 pm

Went down to gas up at the local Petro Can on Departure Bay Rd this morning and the price had been jacked up from 1.299 to 1.459 since yesterday. Price started out the year at 1.299. Oil price hit a high on Jan 6th at 63.28 and then dropped to 49.42 Feb. 4th and now at around 50.60. How do these outlets justify such and increase when price of oil has dropped 22%. There were no cars fueling up at the time I drove by.

I drove 3 minutes up the road and still 1.299. What’s the deal here?