The little big deal

Unless we completely fall off a cliff (not happening), stuff will be worth a lot more in twenty of thirty years. In the course of those decades it’s a sure thing Canadians will face a bunch more tax, since the legacy of Covid & Mr. Socks will be long-lasting, and ugly. Meanwhile life just gets more expensive every year and decent pensions are an endangered species.

These are among the reasons everybody needs to invest. Not save. Invest. And the first place to do this is inside a tax-free account. The TFSA.

Yes, this is more boring than arguing about whether or not Trump won (he didn’t), if you should get vaxed (of course) or how great Bitcoin is (it’s toxic). So just suck it up and read this post quietly, then go and find $6,000 to stick in your plan.

Correct – the max contribution for 2021 is six grand. To date the total of all allowable deposits is $75,500. In order to qualify for the contribution you must be a Canadian resident (don’t need to be a citizen), over 18 and not a complete idiot. The TFSA can be used to split investment income, since a spouse can fully contribute to a partner’s plan with no attribution back to the donor. In fact you can dump cash into the accounts of adult children, too, if you trust them.

Why do this?

The TFSA is a unique thing. Like an RRSP,  money grows free of tax inside the account. Unlike a retirement savings plan, there’s no immediate tax incentive for contributing. But neither is there tax payable on  withdrawals. Thus, after-tax money can multiply, creating taxless growth which is never reported as income when taken.

Most people don’t get this, believing the TFSA is but a glorified savings account used for shoes and new taps. But the greatest benefit is when you’re a wrinklie, collecting government pogey in the form of CPP and OAS. In that case TFSA income is not included on your tax return (like RRSP withdrawals) so it won’t flip you into a higher tax bracket or cause government benefits to be clawed back.

This is a very big deal. A 30-year-old moister starting with $6,000 in 2021 and putting in $500 a month for 35 years would have $969,500 by age 65 at an average return of 7%. That could provide an annual income of $68,000 (without ever being exhausted). Add in the govy cash (minimum two grand a month by then) and you get an income of $92,000, with no tax due. That might not be enough to live on in 2056, but it sure as hell is a good start.

In contrast, a $1 million RRSP would have to be converted to a RRIF at age 71, throwing off increasing amounts of income which is added atop other cash flow. That’s not a bad problem to have, but you’d certainly be sending more moolah to the feds.

The other big advantage of tax-free accounts is flexibility. Money taken out can be put back. Not possible with the RRSP. Any part of original contributions or accumulated growth can be withdrawn at any time, then restored – so long as it’s done in the next calendar year. So if there’s an emergency, fine, take care of it. Then re-contribute.

Now, in order to grow TFSA money it needs to be in growthy assets. Not GICs. Not in a high-interest account. Not a bond fund. As mentioned here recently, many are failing. Almost 40% of all TFSA money now sits in (yuck) cash. Earning nothing. Half of Canadians don’t know a TFSA can hold stuff like ETFs or equities. And fewer than one in 10 people have maxed out their accounts.

There’s no excuse for this in 2021. We know well over $100 billion idles in personal chequing accounts following Mr. Socks’ virus CERBfest last year. All people need do it shift it over into their TFSAs. plopped into some balanced funds, to seriously improve future prospects. But, nah, they’ll spend it going to Cuba when the lockdown ends. Then complain about poverty.

By the way, make sure the institution holding your TFSA has recorded a ‘successor holder’, instead of a beneficiary. Your squeeze will thank you.

Finally, let’s note the greatest single aspect of a TFSA is its democracy. Everybody gets the same contribution room gifted each January. Regardless of income, wealth, pension or station in life. In contrast, RRSPs reward the rich – the more earned, the more that can be dumped in the tax shelter. And the greater that contribution, the bigger the tax refund provided to the fat cats.

So which tax shelter did Justin Trudeau attack when he came to office? Yup, the one with the greatest element of parity, equality and fairness. Remembering that would be useful.

225 comments ↓

#1 Prince Polo on 01.04.21 at 3:24 pm

Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?

$6K to emerging markets…NEXT!!

#2 cliff on 01.04.21 at 3:24 pm

Garth, could you spend some time discussing the bill going through parliament right now (c231?) that amends the Canada Pension Plan? Read some disturbing stuff about how this could prevent them from investing in the top 10 TSE companies etc. and instead have to direct most of its $ to “green” ie. Trudeau’s way of paying for his dream world.

#3 Sask to AB on 01.04.21 at 3:27 pm

Wonderful post.
Appreciate it!

F57AB

#4 yvr optimist on 01.04.21 at 3:29 pm

Except that in BC they won’t (well, in our case the Royal Bank but I’m sure the rest are the same) open an account for someone unless they are 19. Something about not entering into a contract with someone who isn’t old enough to sign on the dotted line. The child gets the room for the year she is 18, but the account can’t be opened unless the holder is at least 19. I learned that little tidbit last week, as we tried to open an account for our older daughter.

#5 Elon Fanboy on 01.04.21 at 3:30 pm

Trying to speak to someone at the CRA appears to be impossible at the moment.

My last application for the CRB got flagged and I have to call them. Tried 3 times so far. After wading thru about 5 mins of automated options I get a recorded message telling me all agents are busy and waiting queues are full, ‘try again later’…at which point I get cut off. Tried 3 times so far.

My poor son, who had an issue raised with an EI application back in March, has been trying unsuccessfully for 9 months on and off to return a call to the CRA.

Just glad we’re not desperate for the benefits.

#6 Bob on 01.04.21 at 3:32 pm

I don’t quite buy the “democracy” argument. Any savings vehicle, no matter how it’s structured, will disproportionately benefit those with money to save. If you’re scrimping by, paycheck-to-paycheck, then the TFSA contribution limit is kind of irrelevant.

As I recall, this was the Liberals’ justification for slashing the limit. Most Canadians couldn’t max their contributions at the previous, lower level, so increasing it was of no help to them. But it was a big help to the high income families that could take advantage.

#7 TFSA on 01.04.21 at 3:32 pm

agree … done … thank you!

#8 crowdedelevatorfartz on 01.04.21 at 3:39 pm

“So which tax shelter did Justin Trudeau attack when he came to office? Yup, the one with the greatest element of parity, equality and fairness.”

++++

Shhhh, dont tell Liberal voters that Trudeau really doesn’t care about equality, parity or fairness…… it’s about votes…
They cant handle the truth.

P.S.
Thanks for instigating the TSFA with the Cons Garth…. It’s brilliant.

#9 SunShowers on 01.04.21 at 3:42 pm

“Fewer than one in 10 people have maxed out their accounts. There’s no excuse for this in 2021.”

Between 1976 and 2014, labor productivity in Canada increased by 52.5%, while median hourly wages only grew by 3.3%, despite moving in relative lockstep previous to early 1980s.

Give me my 49.2% raise and I’ll be happy to invest the bulk of it going forward. Heck, make it retroactively payable in a lump sum and I’ll max out my TFSA & RRSP immediately!

But until that happens, don’t say “there’s no excuse” for Canadian workers to not have the money to invest when they’re being paid almost 50% less than they should be.

Now be a good little commie and include the rest of my statement: “There’s no excuse for this in 2021. We know well over $100 billion idles in personal chequing accounts following Mr. Socks’ virus CERBfest last year.”- Garth

#10 Bguy1 on 01.04.21 at 3:43 pm

What was suppose to happen in Ontario today?

#11 NoOneOfConsequence on 01.04.21 at 3:43 pm

Clarification on withdrawals:

If I have contributed the limit, $69,500 and my dividends are churning out 6.0% annually…I am seeing income of about $4500 every year. So, at the end of 2020 – I was ‘over’ the maximum amount.

If I withdraw $4500 on Dec 15, does that mean I can deposit $10,500 on Jan 1? (put back what I took out, then top up to the max again)

I wanted clarification if ‘income’ from the TFSA is also repayable without penalty.

(you see how I will end up ‘over the deposit limit’ in my given example)

It almost seems too good to be true if so….

It is so. – Garth

#12 Faron on 01.04.21 at 3:46 pm

#132 BillyBob on 01.04.21 at 6:15 am
#111 Bdwy on 01.03.21 at 10:11 pm
#109 IHCTD9 on 01.03.21 at 9:38 pm
#96 Sail Away on 01.03.21 at 8:08 pm
#81 Nonplused on 01.03.21 at 7:12 pm

Garth, again, I regret the length of what follows for the time it will take out of your life to read. If it saves you time, I can assure you it’s clean and doesn’t require a fine-toothed comb.

Oh where to start.

Nice to see a pile on here. I was wondering when my badgering of Nonplused would translate to Sail Away coming to his rescue. That’s very sweet of you SA.

What’s interesting in this “exchange” is how my dissenting opinions, often laced with fact have, to you all, been taken as anger and hate. Aggressively defending a stance is a far cry from hate (although I have used the word in moments of laziness or passion). It illustrates a combative, likely physically combative (clad in tactical pink perhaps?) personality type in that you project your expectations of and from me based on your own psychology. This seems to go hand in hand with Nonplussed lurching toward increasing his home security system and SA building fences around his properties to keep the vagrants out (SA, as an engineer with a physics background, you understand how thermal or concentration gradients work, right? Maybe consider how those physical principles may apply to human needs and wants and change your tactic). Makes me wonder if BillyBob earned his wings in the RCAF.

Now that I’ve lost my audience’s sentiment, I’ll continue boldly, but probably unread. I’ve clearly taken the liberty of classifying you as you have me. However, I know that you are all distinctly different people with a common set of wants and needs but widely varying ways of achieving them. Do I hate you? No. If you called me today and said you needed a lift to Swartz Bay to catch a ferry, I would come grab you and give you a lift. Regardless, maybe we can agree that your classification of me is probably about as wrong as mine of you and subject to equal amounts of confirmation bias. No?

I’ve singled out Nonplused and SA because they hold views that I take to be counter to what I view as essential to progressing as a society and that COVID has exacerbated. I single you out for often aligning with, what to me, is a detestable right to sometimes far-right groupthink and set of disinformation that poses serious risks to the stability of the US. SA, your adherence to Andy Ngo and the Post Millennial sticks in my craw for example. These veins seem to be extending slowly into Canada as expressed in this blog’s comments section. You both often write extensively (Nonplused) and eloquently (SA) on such matters and capitalize on common tropes that lend shallow credence to those ideas even when a more thorough look at the facts reveals that those tropes are hollow bogeymen designed to stoke fear among your cohort.

That we disagree on the facts is underlain by a very serious societal problem that we face in the post-fact world that we live in. I lean on what were traditionally cornerstones of reporting while the far right, and increasingly the right, have found it advantageous to cast those sources as liberal. So, interestingly, what was once a centrist set of mutually agreed upon facts is now cast as detestable and leftist. Rupert Murdoch via Roger Ailes pioneered this approach and the range from breitbart (quasi credible) to Rush Limbaugh to the Daily Stormer or Alex Jones (outright trash) have furthered this approach BECAUSE IT MAKES THEM MONEY. It’s sheer greed that has driven this drive toward a less information-stable society. That I hate and the consequences will be dire.

#13 Inequity on 01.04.21 at 3:51 pm

#6 Bob

Most people can’t scrape together 500/mo…. because they won’t live within their means. Not because they can’t.

I’ve been too poor countries… and what Canadians consider poor is ridiculous.

#14 Bill on 01.04.21 at 3:52 pm

1st paragraph nails it! I already know A LOT but there always some tidbits…
Saving IS futile.
Trying to teach my kid this. He better start reading this blog.
Its a very complicated world now.

#8 crowdedelevatorfartz
Shhhh, dont tell Liberal voters that Trudeau really doesn’t care about equality, parity or fairness…… it’s about votes…
They cant handle the truth.
———————-
No shit eh!!!!? Votes are on the purchase layaway plan for T2.

#15 H. D. Knucklehead on 01.04.21 at 3:53 pm

Does the ‘successor holder’ have to be one person? Wondering if it can be divided some way 50-50.

#16 Mike in Airdrie on 01.04.21 at 3:53 pm

So if every adult in Canada actually maxed out their TFSA in nice growthy ETFs (not going to happen) how long before the Feds would change the rules since no one would pay any tax when they retired?

But every adult will not. Silly question. – Garth

#17 John on 01.04.21 at 3:55 pm

People comparison shop to save $5 while losing $1000s in investment accounts. Penny wise and pound foolish.

The wealth divide is self-inflicted.

#18 mike from mtl on 01.04.21 at 4:03 pm

#6 Bob on 01.04.21 at 3:32 pm

..Most Canadians couldn’t max their contributions at the previous, lower level, so increasing it was of no help to them. But it was a big help to the high income families that could take advantage…
/////////////////////////////////////////////////////////////

High Income.. I think we have a different idea. 6k/yr is lunch money. TFSA while very much needed is limited and not a huge tax risk for the CRA given what Garth always harps on every year.

The reduction the Libs did from 10k to 6k is pure politics and optics. Even prior 10k/yr + total 70k is tiny for even the mildly ‘rich’. Even for them they invest in independent biz, RE and at times RRSP.

I’m not rich and taxed dry but can comfortably put away 20-25k a year to invest. Excuses why YOU can’t invest should not impede the only decent and fair investment for middle-class dorks like us.

#19 Faron on 01.04.21 at 4:06 pm

Thanks for the great post on the TFSA Garth and thank you for your hand in giving us this gift.

Drink up Prince Polo:

If I were wealthy enough to hold sector ETFs in size or indiv stocks I would buy (off the cuff):

Equal parts QQQ for some momentum exposure, XHC because it’s underperformed and should do fine with the ageing boomers, VVL because value is due to jump again, and ZRE because it’s currently way undervalued and yields 5%. Out of the TFSA, I’d probably put a small, but steady stream to purchasing OTM SPY options to hedge big upside and big downside risks. I’m currently fascinated by the options market (as are all COVID-minted traders) and have been enjoying reading about it even if I wont touch it with a ten foot pole.

But, because I don’t hold sufficient wealth, I’ll probably buy 33% Canadian XIC, 33% US VTI, and 33% VI. Or just VT to make it easy. Again, off the cuff.

#20 Love_The_Cottage on 01.04.21 at 4:06 pm

#1 Prince Polo on 01.04.21 at 3:24 pm
$6K to emerging markets…NEXT!!
____________
I’ve transferred the $6K to the TFSA today and next step is to do the investment after checking the current investment mix. International and emerging underperformed last year so it’s likely where the $$ need to go.

#21 Gg on 01.04.21 at 4:07 pm

“So if every adult in Canada actually maxed out their TFSA in nice growthy ETFs (not going to happen) how long before the Feds would change the rules since no one would pay any tax when they retired?”

Mike that’s a backwards argument. It’s not a zero sum game. If more people have large TFSA that’s good for government. Less people would be dependent on government
The tax paid would not be less just cause everyone has a fat TFSA. Government should love it !!

#22 Branch Covidians on 01.04.21 at 4:07 pm

DELETED. Anti-vax.

#23 Dogman01 on 01.04.21 at 4:10 pm

Regarding a pension decision my spouse asked: Can we trust the people who run this over the next 30 years – will they just change the rules on us to benefit themselves?

Her take was that our society has moved away from moral compunction and the integrity of the individual. While the plumber still has integrity it is likely that integrity is more of a hinderance for “leaders” to climb to the top of our establishments. Ambition, personal success, money, spin and ensuring your friend’s are taken care, has become the key values to achieve “leadership” positions. No accountability, instead huge severance when screwing up and then a new executive job waiting because of favors owed. (cronyism)

Our institutions then receive doubt as they are led by people brought up in a today’s failed ethos of modern leadership.

In the book Civilization, the West and the Rest, the author concludes that the rest of the world is catching up with the West and may surpass the West as the West has lost the informal moral glue of society (Protestant work ethic, expectation of fair dealings, moral hazard etc)

Something to think about as your MLA is in St Bart’s and you confined yourself from you family to uphold a “social contract”.

#24 Brett in Calgary on 01.04.21 at 4:14 pm

Agreed. Naivety abounds. This is why Garth’s blog is so important.
========================
#17 John on 01.04.21 at 3:55 pm
People comparison shop to save $5 while losing $1000s in investment accounts. Penny wise and pound foolish.
The wealth divide is self-inflicted.

#25 Ustabe on 01.04.21 at 4:18 pm

Faron, you nerd, you!

Although I identify as a conservative man I’m old school like our host. Canadian old school Progressive Conservative. Hence mostly at odds with the current crop of new cons. Neo, Alt, whatever…

So, when you say: If you called me today and said you needed a lift to Swartz Bay to catch a ferry, I would come grab you and give you a lift.

I’d just like to let you know I wouldn’t even go so far as to share an elevator with them. Never mind drive them out to the ferry.

Well, maybe except IHCTD9…he at least tosses some thought and empathy into the mix. Sure likes to show up for a dogpile tho.

The question should not be “What is a Faron?” rather it should be “Why has this place been allowed to become a high school clique?”

#26 Be Wealthy on 01.04.21 at 4:20 pm

“If I have contributed the limit, $69,500 and my dividends are churning out 6.0% annually…I am seeing income of about $4500 every year. So, at the end of 2020 – I was ‘over’ the maximum amount.”

No, your money can grow to any amount. The $69,500 now $75,500 is the max contribution to TFSA. The total amount including growth has no dollar limit. If you can afford to make an RRSP contribution, put the tax refund into your TFSA. Rinse and repeat. I recommend high growth stuff in your TFSA since it is all growing tax free. Put the safe stuff in your taxable accounts.

#27 Elon Fanboy on 01.04.21 at 4:20 pm

Also just to add to the TFSA rules, min age of opening one depends on Province. Here in BC, ‘Age of Majority’ is 19, so you have to wait an extra year. I presume the allowance though is still compounded, so you have 2 years worth if opened at 19 in B.C.

Also looking for suggestions…my nearly 18 year old spawn will be inheriting a sizeable amount this year ($100k-ish). Given she can’t put in into a TFSA or any type of self regulated investment account for another year….does she have any option than a crappy low interest savings account?

#28 C V on 01.04.21 at 4:20 pm

“But, nah, they’ll spend it going to Cuba when the lockdown ends. Then complain about poverty.“

Died laughing

“A 30-year-old moister starting with $6,000 in 2021 and putting in $500 a month for 35 years would have $969,500 by age 65 at an average return of 7%. That could provide an annual income of $68,000“

how do I convince my 20 year old brother sitting on 50k in a chequings account of this, I’ve tried everything he just doesn’t’ care yet.

#29 Eco Capitalist on 01.04.21 at 4:21 pm

@ #2 Cliff

Bill C-231 is a private member’s bill; I wouldn’t lose any sleep over it. You can read the whole thing on LEGISinfo (it’s short!).

#30 Linda on 01.04.21 at 4:25 pm

Today’s blog dog picture is fluffy, not fat! Either that or the person carrying the pup has some serious muscle.

TFSA’s rock! Like so many, I used to have some TFSA $ in a HISA, earning the diddly of squat even before interest rates began their journey to the centre of the earth. Fortunately that was in the very early TFSA years & I moved those $ into growth based investments plus made the maximum annual contribution, which I will be doing again this year. I like to lump sum it as close to the beginning of the year as I can. Thanks to Covid sufficient savings built up in the HISA but in previous years I’ve done a ‘contribution in kind’ from the non registered account.

#31 the Jaguar on 01.04.21 at 4:26 pm

@#152 Triplenet on 01.04.21 at 11:30 am
#16 jaguar
Impertinent….?
You need a dictionary and an atlas!

———-

im·per·ti·nent
/imˈpərtnənt/
Learn to pronounce
adjective
1.
not showing proper respect; rude.
“an impertinent question”

#32 Flop... on 01.04.21 at 4:27 pm

Starting to think about what to put in my TFSA this year, then something started to nag at me and I became distracted.

What about if I need a lift to Swartz Bay…

M46BC

#33 Paddy on 01.04.21 at 4:28 pm

You don’t even have to work to be able to contribute to a TFSA. I agree Garth, there’s no excuse for people who have decent jobs to be complaining about poverty in their elder years when we have investment vehicles like this available. It’s almost too good to be true. Anyhoo…I maxed her out again this year and bought more growthy stuff. Great post.

#34 Dogman01 on 01.04.21 at 4:30 pm

#9 SunShowers on 01.04.21 at 3:42 pm

“Between 1976 and 2014, labor productivity in Canada increased by 52.5%, while median hourly wages only grew by 3.3%, despite moving in relative lockstep previous to early 1980s.”
————————————————-

Yes – this trend is not your friend, people relying on wages are doomed in Canada , this is wrong and bad, you are righteous and correct.

But utilizing the principle of rescue, you now need to put yourself in a position of “safety” before you can help others.

“Concentrate on using you life to achieve some good for yourself, and others. Railing against the gods wastes your most precious gift, while changing nothing.” — Garth Turner

Assuming you are youngish…
The TFSA along with saving, thrift and discipline are your tools to achieve financial safety.

It’s Maslow’s hierarchy now, get independent first, use the TFSA, then fight the good fight.

“This is Darwin, baby. And you’d best know that now.” – Garth Turner

#35 SunShowers on 01.04.21 at 4:30 pm

“We know well over $100 billion idles in personal chequing accounts following Mr. Socks’ virus CERBfest last year.- Garth”

Well over $100 billion in how many combined personal chequing accounts? Is that something that we know?

If we’re just combining the balance of every chequing account in Canada, then that $100 billion isn’t even enough cash for everyone to reach this year’s $6000 contribution limit.

Not really a significant amount of money that would finance retirement, considering it would be a one-time contribution which was accumulated over an 8 month period with unprecedented levels of government assistance.

#36 SoggyShorts on 01.04.21 at 4:45 pm

#9 SunShowers on 01.04.21 at 3:42 pm
What does productivity have to do with wages?
If I hire someone to nail wood together for $20/h and then buy an expensive nailgun so that he can do it twice as fast, do I owe him $40/h?

#37 Blobby on 01.04.21 at 4:47 pm

I can invest into TFSA

My issue is finding people I trust with said money. I have multiple “balanced growth” rrsp’s (a whopping – lol – $200k in total, ish) and none of them have averaged much of note over the last 10 years. I obviously suck at picking people to manage my portfolio. Unless Garth is accepting new customers, I feel at a loss as to which people to trust with my investments.

#38 Faron on 01.04.21 at 4:47 pm

#168 crowdedelevatorfartz on 01.04.21 at 3:04 pm

@#165 IHCTD9

++++

Greta would be disappointed in your “carbon signature”….. and on her birthday but what the hell.

Common misconception CEF. Wood is a renewable carbon source. The mathematical ideal would be to sink that wood abyssally beyond the carbon compensation depth so it acts as a geological sink. But doing so would cost more carbon than saved. Scrap wood will be CO2 eventually so IHTSC9er may as well enjoy the heat from it. A clean burning stove is one of the best way to do it in terms of polluting co-emissions. Greta would give tractor man a gold star or maybe even a peck on the cheek in that euro way.

#39 SoggyShorts on 01.04.21 at 4:47 pm

#18 SoggyShorts on 01.04.21 at 4:45 pm
#9 SunShowers on 01.04.21 at 3:42 pm
What does productivity have to do with wages?
If I hire someone to nail wood together for $20/h and then buy an expensive nailgun so that he can do it twice as fast, do I owe him $40/h?

I mean if there’s no new fancy nail gun and over time he just gets faster from experience, sure- but that’s not what happened since 1976 to increase production by 50%.

#40 Darryl on 01.04.21 at 4:47 pm

Any idea where Socks is?

#41 Why Garth? on 01.04.21 at 4:47 pm

Hi Garth, great blog! Just wondering why you push the vacccine on people so hard? I’m very curious to know and other blog dogs will love to know aswell
Thanks
Rupaul

You want to stay in lockdown for a couple of years? Then resist the vax. – Garth

#42 jess on 01.04.21 at 4:48 pm

BECAUSE IT MAKES THEM MONEY. It’s sheer greed that has driven this drive toward a less information-stable society.

==============
crypto robots,

OCCRP and its partners have unpicked how consumers from around the world are being funneled from harmless-looking ads towards risky, sometimes fraudulent, investments. Here’s how the entire process could work for an unsuspecting user:

https://www.occrp.org/en/fraud-factory/down-the-bitcoin-funnel-the-tech-firms-driving-investors-to-ruin-with-fake-celebrity-news

#43 yvr_lurker on 01.04.21 at 4:49 pm

A global economic recovery for 2021 s largely contingent on the assumption that the vaccines will provide some clear immunity to Covid and its mutations or variants. As I remarked a few days ago, there will be surprises along the way and there will likely be problems ahead. In particular, this link below is potentially really concerning and I am sure that the top labs will be investigating this issue thoroughly

https://www.cbc.ca/news/health/covid-19-vaccine-south-africa-variant-1.5860585

#44 Buford Wilson on 01.04.21 at 4:50 pm

Too many tax strategies and loopholes in the Dominion of Canada.

In Russia I paid a 13% flat tax on income. No deductions or credits.

#45 Blobby on 01.04.21 at 4:51 pm

That said, I also have 1/4 million cash in the business, I really should invest that too.

#46 Howard on 01.04.21 at 4:51 pm

The one useful part of Faron’s latest novel above is that he mentions the courageous Andy Ngo (pejoratively, of course). This might prompt other readers here to look up Ngo’s excellent work for which he has been dealt a physical toll (possibly permanent) by communist agitators in Portland.

#47 Sail Away on 01.04.21 at 4:52 pm

#12 Faron on 01.04.21 at 3:46 pm

Nice to see a pile on here. I was wondering when my badgering of Nonplused would translate to Sail Away coming to his rescue. That’s very sweet of you SA.

———

Thanks! I’m just a lone soul in the wilderness singing a song of harmony.

I briefly scanned your novel. There may be some notes of interest for first-time readers. Borrowing from Mark Twain: it doesn’t rhyme, but it does diatribe. Sigh.

#48 Howard on 01.04.21 at 4:59 pm

#1 Prince Polo on 01.04.21 at 3:24 pm
Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?

$6K to emerging markets…NEXT!!

——————————————–

I escaped Canada years ago, but in my “TFSA” (or the similar vehicle I use in my new country) I’m adding to my gold and silver miners, rare earth producers, and energy. Also will be buying more NASDAQ ETF shares in anticipation of the blow-off top due some time in Q2.

Emerging markets are a good idea though since they are highly undervalued. I like Mexico for investment in particular. India is good too.

#49 Bill on 01.04.21 at 5:02 pm

I sent out a few nasty emails to these people.
Nobody should stand for “do as I say not as I do”
I’ve got enough money to travel for 30 years….I’m locked down and not putting up with this.
What a hypocrisy we live in.

https://ca.yahoo.com/news/list-canadian-politicians-travel-173425567.html

#50 Drew on 01.04.21 at 5:02 pm

Of course he did, for a lot of people TFSAs are also for the rich, because apparently only ‘rich’ people can save $6000 a year.

I guess going to Cuba, buying iPhones, and whining about being poor is more fun.

#51 Dolce Vita on 01.04.21 at 5:13 pm

TFSA good. People not investing in one, bad. So true.

——————————

EU VIRUS PORN – Big Brother Begins & Doc VAX’D 1st TIME THEN GETS INFECTED…

BIG BROTHER BEGINS
Well Garth you’ll be happy [prediction wise] to know that who gets vax’d or not is likely to be tracked.

España took that first step today (by DW, short video in English):

“Spain will create a database of people who refuse to be vaccinated against coronavirus and share it with the rest of the EU.”

https://twitter.com/dwnews/status/1346187141986992128

Nothing I could find in El Pais or El Mundo from Spain. Would not have taken this seriously had it not been the source was rock solid state public broadcaster Deutsche Welle.

Doc VAX’D 1st TIME THEN GETS INFECTED…
Siracusa, Sicilia Medical Doctor gets first jab, 6 days later gets Covid-19. Staunch Vax’r that she is claims it was probably dormant in her to start with.

ISS (kind of like CDC for Italia) head Locatelli says clinical trials for vax’s show that can happen after the 1st jab and went on to say:

“Complete protection only after the second dose”

https://palermo.repubblica.it/cronaca/2021/01/03/news/covid_medico_siracusano_vaccinato_sei_giorni_fa_e_positivo-280926805/

Meanwhile the geniuses in the UK are delaying the 2nd jab by 2 months to get more people the 1st jab claiming high efficacy after only 1 jab. If that were true then why do Pfizer and Moderna say 2 jabs? Even America’s Fauci in as many words thinks that’s stupid.

Time will tell.

1 case is nowhere near a statistically significant sample size, rule of thumb at least 35. Made me take note.

Made news all over the EU. Even the Spanish went to great lengths explaining it (you know considering they’re going to have dung list of who does and does not get vax’d).

https://www.elmundo.es/ciencia-y-salud/salud/2021/01/04/5ff2c9cdfc6c8306368b4577.html

#52 Sail Away on 01.04.21 at 5:13 pm

#12 Faron on 01.04.21 at 3:46 pm

Do I hate you? No. If you called me today and said you needed a lift to Swartz Bay to catch a ferry, I would come grab you and give you a lift.

———

Cool, I’ll take you up on that. I’m in Port McNeill and could use a lift down-island. It’s 6 hours each way, but don’t worry – I have a pillow and if the seat reclines, will be able to get some much-needed shuteye while you drive.

Thanks!

Oh… you should plan to be here around 8 tomorrow so I can catch the 5 o’clock with time to spare.

#53 Keyboard Smasher on 01.04.21 at 5:14 pm

I see that Garth has gone full-on Stalin mode with the censorship of legitimate vaccine concerns…

Troubling signs.

Too bad. This blog’s precious real estate will not be handed over to cowardly, selfish, egocentric anti-vaxers. You have a duty to be inoculated. – Garth

#54 Lee on 01.04.21 at 5:15 pm

Short-term corporate bonds aren’t collapsing.

#55 Faron on 01.04.21 at 5:16 pm

#23 Sail Away on 01.04.21 at 4:52 pm

#12 Faron on 01.04.21 at 3:46 pm

Glad you have fenced people out of your harmonious wilderness. I recommend the Obama approach of using drones. Less visual evidence of the paradise you enjoy, yet still keeps the riff raff at bay.

Seriously though, why are you back? I took your absence here as a sign that you had realized the value of your time or that your well-being had somehow improved so that you didn’t need to express your superiority to a bunch of internet strangers in this echo chamber. But, maybe I’m projecting my own toxic relationship with this “forum” onto whatever yours is.

#56 S.Bby on 01.04.21 at 5:19 pm

England in complete lockdown for four weeks as of today.

What will the USA do?
What will Ontario do?
What will Trump do?
What will the virus do?

It’ll be an interesting next few months.

#57 the Jaguar on 01.04.21 at 5:21 pm

#47 Sail Away on 01.04.21 at 4:52 pm

Double sigh. What usually comes next is faked contrition and acknowledgement of deep seated emotional conflicts. A sympathy ploy. Then it waits for its next victim to come along. The victims generally all successful and confident alpha male types. At the bottom of what seems an endless well of neediness is naked desperation to be accepted as an equal, which of course will never be true.
My idea of nothing.

#58 tulip on 01.04.21 at 5:26 pm

#40 Darrel
Any idea where Socks is?

I am curious also……

#59 Poor shmuck on 01.04.21 at 5:28 pm

This blog is for rich people only. It’s upsetting to read things like “go and find $6,000.” That’s almost 20% of my take-home in a year. I’m pinched in literally every direction. Groceries up, rent up, I have holes in my shoes, vehicle repairs, day-care, etc etc etc.

Your advice is for people who have already won the lottery and just want more more more more.
I think, Garth, that you’ve lost touch with the average Canadian. Your advice helps only the top of the top. I’d support killing the TFSA all together – y’all need to be taxed more.

#60 Keyboard Smasher on 01.04.21 at 5:30 pm

DELETED

#61 SunShowers on 01.04.21 at 5:31 pm

#36 SoggyShorts on 01.04.21 at 4:45 pm
If I hire someone to nail wood together for $20/h and then buy an expensive nailgun so that he can do it twice as fast, do I owe him $40/h?

Yes, precisely.
The laborer is still doing the work themselves on your behalf, so they are entitled to the value created by their labor. The work would not be getting done at all at any price if not for the worker. It’s not as if you are doing any additional work to deserve the additional $20 per hour.

“But I bought the nail gun!” you might protest.

Well, why doesn’t the worker themselves have a nail gun and cut out the middleman (you)? Is it because you’re smarter or more hard working than the worker? No, it’s probably because you have enough money to buy the nail gun and the worker does not. Essentially you’re saying that you deserve to make more money because you had more money to begin with. Something about the rich becoming richer and the poor becoming poorer comes to mind.

“But then how will I make money?” You might ask.

Well, assuming that you are not an absentee boss (and there are several, my wife’s proudly and routinely brags about how he continues to make money while golfing because his employees work instead of him), you have some role in the production process that you are rightly compensated for. By allowing your worker to work twice as fast, he enables you to work faster as well, which enables your company to sell more product and for you to make more money.

#62 Faron on 01.04.21 at 5:32 pm

#25 Ustabe on 01.04.21 at 4:18 pm

Faron, you nerd, you!

I’d just like to let you know I wouldn’t even go so far as to share an elevator with them. Never mind drive them out to the ferry.

Ha, that’s a sensible response. I tend to people please — characteristic of a child of an alcoholic mother.

Anyhow, I appreciate your posts and that you express more humanity in your pinky than many here in corpus.

#63 Faron on 01.04.21 at 5:40 pm

#57 the Jaguar on 01.04.21 at 5:21 pm

#47 Sail Away on 01.04.21 at 4:52 pm

Double sigh. What usually comes next is faked contrition and acknowledgement of deep seated emotional conflicts

Ha, good call. Fair enough. Contrition no however. I’d love to get a sense of who these people are and occasionally err on the side of expressing some vulnerability to do so. I guess that’s toxic to the 45+ millennial hating set. Nice that you will identify my weaknesses and spit on them yet wont address a single issue that kicked this thing off. But, Cougars do like manly men… So.

#64 Rainman on 01.04.21 at 5:40 pm

Can you borrow to put into your TFSA and then write off the interest?

No. – Garth

#65 Do we have all the facts on 01.04.21 at 5:46 pm

The total net worth of all 16,000,000 households in Canada in 2019 was $11.7 trillion.

According the Parliamentary Budget Officer the average net worth of the bottom 40% of all Canadian households, or 6,400,000 households, was $22,000 in 2019, including accrued pension contributions.

The average net worth of the bottom 80% of all Canadian households, or 12,800,000 households, was $242,000 in 2019.

This means that the average net worth of the top 20% of all Canadian households, or 3,200,000 households, was
$2,688,000 in 2019. Clearly the top 20% appear to be prepared for retirement, the bottom 80% not so much.

Over $4.3 trillion of the $11.7 trillion in net worth held by all Canadian households represents equity in real estate. This is exactly the same amount of net worth held in the form of mutual funds, listed and unlisted shares and cash. The balance of net worth represents life insurance, pension investments and consumer durables,

Any downward adjustment in the value of real estate or equities in the future will affect the top 20% but could be catastrophic for a major portion of the bottom 80% of all households.

Investing funds for your future is no longer an option for most Canadian households, it has become a necessity.
This blog has been a source of sound advice for many years but there is clear evidence that far to many households are not taking steps to secure a comfortable retirement.

This must change!

#66 Penny Henny on 01.04.21 at 5:46 pm

#1 Prince Polo on 01.04.21 at 3:24 pm
Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?
////////

This year it went to Fortis, FTS.
Steady growth and divedends up about 7% /yr.
I’m retired and livin off the divy’s.

cheers

#67 Joe Schmoe on 01.04.21 at 5:48 pm

I am skimping on my RRSP this year…my lowest income levels in 20 years…might as well wait a year or two until the tax reduction is better.

Never skip a TFSA deposit though…that thing is a future gold mine.

Why do people want to debate vaccination on a financial blog?

Get the vaccine. People come here for financial advise. Take the free health advice too. I agree with Garth on this. Not that it matters to people who are trying so hard not to understand.

#68 Bob on 01.04.21 at 5:49 pm

#18 mike from mtl

Excuses why YOU can’t invest should not impede the only decent and fair investment for middle-class dorks like us.

Just who do you think YOU are talking to? I max out my TFSA every year, thank you very much. And I was disappointed when the Liberals lowered the limit. Nevertheless, I don’t think that their actions were baseless. I also worry about the future drag on the tax base these things will create.

#69 Faron on 01.04.21 at 5:49 pm

#52 Sail Away on 01.04.21 at 5:13 pm

You have to make my hotline bling. Else, no service.

#70 Try ... on 01.04.21 at 5:49 pm

#28 C V on 01.04.21 at 4:20 pm
how do I convince my 20 year old brother sitting on 50k in a chequings account of this, I’ve tried everything he just doesn’t’ care yet.
——————————————————
educatin’ him with a 2X4 …

#71 crowdedelevatorfartz on 01.04.21 at 5:50 pm

@#58 tulip.
“Any idea where Socks is?”

++++

Trying to get SNC Lavalin to charter him a private jet to Mexico City under an assumed name?

#72 Timmy on 01.04.21 at 5:51 pm

“So which tax shelter did Justin Trudeau attack when he came to office? Yup, the one with the greatest element of parity, equality and fairness. Remembering that would be useful.”

————————

That’s because Trudeau was a trust fund baby. He never had to earn money to make a living.

#73 Dolce Vita on 01.04.21 at 5:53 pm

EU VIRUS PORN II + WFH PORN 1st Edition

You may be irate Canada about Gov “do as I say, not as I do”, lockdowns, etc. but it can always get WORSE…be GRATEFUL for what you have.

1. Well, take the “Merry” out of Merry Old England. Hours ago PM Boris imposed a nationwide lockdown to the end of January, maybe February…with Boris who knows? Scotland’s Sturgeon just announced the same a few hours ago (to the end of January).

A LOT of Brits in the past few hours on Twitter…not happy campers.

BBC, just the facts
https://twitter.com/BBCNews/status/1346220324438867968

Trash rag The Daily Star reaction
https://twitter.com/dailystar/status/1346220424447856640

Meanwhile at The Sun (the real one for the UK not the fake one from Toronto) starting a:

“Jabs Army” all on their own
https://www.thesun.co.uk/news/13638387/whopping-7750-volunteers-sign-up-to-the-suns-jabs-army-appeal-in-first-48-hours/

Germany lockdown extended to end of January, not happy there either. Italy, we have basically given up and assume we will be in permanent lockdown, like forever.

2. WFH PORN 1st Edition

Not wishing to fan the flames of Overlord vs. WFH’ers, this poll today by American Trump Mime comedian Sarah Cooper asking her devoted throngs the question, 4h ago:

“Do you like working from home?”
[Yes · No]

69,128 votes · 19 hours left (Hint to WFH’ers, you still have time to vote, you too Garth).

Results so far (2351h CET):

https://i.imgur.com/YJPgMAL.png

I was going to Comment, direct lifts from Garth’s Blog from the HR Lawyer and Toronto Lawyer to scare the living daylights out of them…but decided nah, them probably being Snowflakes and all (and it being Twitter, well known for its Twitter storms of the discontented).

#74 Tron Light on 01.04.21 at 5:53 pm

DELETED

#75 KLNR on 01.04.21 at 5:55 pm

@#12 Faron on 01.04.21 at 3:46 pm
#132 BillyBob on 01.04.21 at 6:15 am
#111 Bdwy on 01.03.21 at 10:11 pm
#109 IHCTD9 on 01.03.21 at 9:38 pm
#96 Sail Away on 01.03.21 at 8:08 pm
#81 Nonplused on 01.03.21 at 7:12 pm

now now, children.
quit being petty and try to get along.

#76 Brian Ripley on 01.04.21 at 5:56 pm

December Housing data is starting to come in. Here are Calgary housing charts with DEC data:
http://www.chpc.biz/calgary-housing.html

Res-Listings down 73% from JUN 2010 high
Res-Sales down 64% from MAY 2013 high
Current Monthly Absorption Rate = 33%
Current Months of Inventory = 3

Calgary SF Detached Price
Down 8% from MAY 2017 peak
Up 21% in last 10 years

Calgary Town House Price
Down 28% from MAR 2018 peak
T-Houses priced at 58% of SFDs
or 1 SFD = 1.7 Townhouses

Calgary Condo Price
Down 30.2% from JUN 2014 peak
Condos priced at 46% of SFDs
or 1 SFD = 2.2 Condos

#77 SunShowers on 01.04.21 at 6:03 pm

#53 Keyboard Smasher on 01.04.21 at 5:14 pm
I see that Garth has gone full-on Stalin mode with the censorship of legitimate vaccine concerns…

lol very humorous to me that someone would accuse Garth of going “full-on Stalin mode” in the comments while he allows a commie to walk the halls.

#78 Erick on 01.04.21 at 6:06 pm

Projections of returns on investment 35 years in the future should be calculated taking into account inflation, otherwise it looks better than it really is (1$ in 35 years is worth 0.xxx $ today)

Duh. No argument for not acting now. – Garth

#79 Love_The_Cottage on 01.04.21 at 6:08 pm

What’s coming on Monday in Ontario may shock a lot of people who thought 2021 would immediately bring vaccine lift and rainbows.
____________
#10 Bguy1 on 01.04.21 at 3:43 pm
What was suppose to happen in Ontario today?
____________
In fairness he didn’t say which Monday.

#80 lifeisgood on 01.04.21 at 6:08 pm

“@Prince Polo
Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?

$6K to emerging markets…NEXT!!”

120 shares of BAM.a @ $50.17 (early PM) with the $6000.
Same for my wife…

#81 Penny Henny on 01.04.21 at 6:17 pm

#38 Faron on 01.04.21 at 4:47 pm
#168 crowdedelevatorfartz on 01.04.21 at 3:04 pm

@#165 IHCTD9

++++

Greta would be disappointed in your “carbon signature”….. and on her birthday but what the hell.

Common misconception CEF. Wood is a renewable carbon source. The mathematical ideal would be to sink that wood abyssally beyond the carbon compensation depth so it acts as a geological sink. But doing so would cost more carbon than saved. Scrap wood will be CO2 eventually so IHTSC9er may as well enjoy the heat from it. A clean burning stove is one of the best way to do it in terms of polluting co-emissions. Greta would give tractor man a gold star or maybe even a peck on the cheek in that euro way.
////////////

Ok, it’s renewable.
How is it better than burning natural gas as a power source?

#82 Dolce Vita on 01.04.21 at 6:17 pm

#58 tulip
#40 Darrel
Any idea where Socks is?

I am curious also……

———————–

Apparently, 1h ago, he has a pic of himself on Twitter, in his office, talking to the computer screen:

“…I connected with Dr. Tam and Dr. Nemer this morning to speak about the current COVID-19 situation. We’ll continue to work together, base our decisions on the latest available science, and do everything we can to keep you safe.”

[You as in the Kanuckistan free range herd]

https://twitter.com/JustinTrudeau/status/1346216474499837956

Then again, you know, he could be in the Caribbean for all we know.

#83 Gravy Train on 01.04.21 at 6:18 pm

#39 SoggyShorts on 01.04.21 at 4:47 pm
“What does productivity have to do with wages?” Gosh, you’re starting to sound a lot like Nonplused and Economystic. Here, read pp. 14-17 of the linked article for a simple model of the relationship between labour productivity and real wages, and then we can discuss further:
http://csls.ca/reports/csls2008-8.pdf

#84 binky barnes on 01.04.21 at 6:18 pm

I am quite certain that Mr. Justin Trudeau is toiling away day & night to improve the lot of Canadians. I can assure you that nothing–not even a flattering selfie–is more important to this person than the economic well-being of Canadians. Nothing.

Winston Churchill told the British people that he had nothing to offer them but his ‘blood, toil, tears and sweat’. I know Mr. Justin Trudeau can shed tears. Toss in his day & night toil and there you have it–a leader who is Churchillian in quality. We are so lucky.

BB

#85 Lead Paint on 01.04.21 at 6:21 pm

Interesting, CNN is reporting on the ‘UK Strain’ of the virus, but ‘Wuhan’ or ‘China’ virus is racist. Funny how that works.

#86 Nonplused on 01.04.21 at 6:25 pm

Definitely good advice. It bears repeating from time to time especially for the new visitors to the blog.

I let my TFSA wallow for many years because it didn’t seem substantial, and I knew the contribution room carried over much as your RRSP limit does. But it’s all topped up now and every year when I sit down with my financial advisor we top it up again, mostly by moving funds out of my cash account where the assets are exposed to taxes. Why not? I don’t use margin or sell short anyway, I’m too chicken for that. And it seems to me the TFSA can hold all the same assets that the cash account can.

I know Garth doesn’t necessarily agree with me, but I believe Trudeau is going to go after the capital gains inclusion rate, because it is seen as a tax break for the wealthy. I think the inclusion rate will rise from 50% to at least 75% and 100% is not out of the question. So if you have assets in a cash account that your aren’t actively trading but is instead part of a B&D portfolio, my advice would be to move it to your TFSA. You have nothing to lose. It will trigger a capital gains tax now, but it will later anyway and possibly at higher rates.

Some might ask “ok, but what if I don’t have $75,500 lying around?” That is the beauty of this tool is that you can put in what you can.

Thanks again Garth for this wonderful legacy you have left us from your time in office.

#87 Sail Away on 01.04.21 at 6:26 pm

#55 Faron on 01.04.21 at 5:16 pm
#23 Sail Away on 01.04.21 at 4:52 pm

#12 Faron on 01.04.21 at 3:46 pm

Glad you have fenced people out of your harmonious wilderness. I recommend the Obama approach of using drones. Less visual evidence of the paradise you enjoy, yet still keeps the riff raff at bay.

Seriously though, why are you back?

…maybe I’m projecting my own toxic relationship with this “forum” onto whatever yours is.

————

Yes, it probably was unfair to fence the common area. Adult idiot children should always be allowed to access and defile private property.

Why am I back? Well, obviously Jeremiah 33:3: ‘Call unto me, and I will answer thee, and will show thee great things, and difficult, which thou knowest not.’

Here to help, amigo. My forum relationship is friendly and symbiotic.

#88 cuke and tomato picker on 01.04.21 at 6:29 pm

Yesterday my wife and I took a drive around south Vancouver Island it was 10c and sunny no snow all green.
Our TFSA program is done for 2021 and future plans for
22,23,24,25 it can be changed quickly if they change the amount like they did 3 years ago on Dec. 1st. Very happy
with our boys they scored in the FIRST SECOND AND AGAIN UP 2- 0 against the russians. CANADA PROUD

#89 Drinking on 01.04.21 at 6:33 pm

‘successor holder’, Is this only to the regards of one owning a TFSA or does it reflect all holdings?

If you answered this in a previous post in this current blog, my apologies, have not read them!

#90 Dogman01 on 01.04.21 at 6:37 pm

#1 Prince Polo on 01.04.21 at 3:24 pm
Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?
——————————————
For me, the shotgun ETF of ZGQ.

My spouse, the sniper rifle of Mawer Emerging Markets.
For EM I figure the selective knowledgeable picking by experts is worth the mutual funds fees.

#91 Axehead on 01.04.21 at 6:40 pm

#83. Are you retarded? Or perhaps, I hope, simply sarcastic.

#92 Penny Henny on 01.04.21 at 6:42 pm

Well I see you did publish my comment and if it means anything to you I do apologize for my rudeness.

No problem. But I nuked your last comment as a proportionate retaliation. – Garth

#93 MF on 01.04.21 at 6:46 pm

3 Dogman01 on 01.04.21 at 4:10 pm

I disagree.

The “rise” of the rest veruss the west is 100% the result of globalization, which is part of unstoppable human progress. It is no one’s fault really and is inevitable. It also has zero to do with anyone’s work ethic.

And with regards to leaders, all the characteristics you mentioned exist in any civilization, and have existed forever.

MF

#94 Inequity on 01.04.21 at 6:46 pm

#53 Keyboard Smasher

I believe people should have the freedom to vax or not, even wear masks or not.
But I also believe that grocery stores, restaurants, and companies have the right to refuse you access or service… and yes, even employment.

I believe most of the people on this blog will have a scar on their arm from getting vaccinated before.
I don’t understand why its such a big deal for some.

#95 Adam Smith on 01.04.21 at 6:50 pm

#1 Prince Polo on 01.04.21 at 3:24 pm
Sip some scotch every time somebody writes what they bought with their 2021 TFSA room?

After a bit of recklessly successful gambling on some individual crippled energy stocks, I’m rebalancing with some XUT, the closest thing Canada has to a renewable energy ETF. With a decent chance Biden might own everything but the SCOTUS for a while, feel I should probably have a chunk of that.

#96 Blog Bunny on 01.04.21 at 6:56 pm

TFSA contribution maxed out on January 1st for the whole family.

Did anyone notice that the world population keeps increasing daily despite the pandemic? And politicians keep travelling. I give this pandemic an F.

#97 Flop... on 01.04.21 at 6:57 pm

Hey, you guys, I’m still waiting at the Swartz Bay Ferry Terminal.

Is this Greaterfool ride sharing system up and running or not…

M46BC

#98 Faron on 01.04.21 at 6:59 pm

#80 Penny Henny on 01.04.21 at 6:17 pm

#38 Faron on 01.04.21 at 4:47 pm
#168 crowdedelevatorfartz on 01.04.21 at 3:04 pm

@#165 IHCTD9

Ok, it’s renewable.
How is it better than burning natural gas as a power source?

There are roughly two pools of carbon on earth. One pool exchanges with the atmosphere on very long timescales — millions of years — the so-called fossil fuels but also limestone and dissolved CO2 in the earth’s crust and mantle. The other on very short timescales of a few years, mostly cellular respiration i.e. trees and dead and decaying matter. Burning fuels derived from the latter doesnt change the size of the pool and atmospheric CO2 doesn’t change. With the former like natural gas, carbon is moved from the long pool to the short and carbon in the atmosphere is increased and “stuck” until the very slow geological drawdown can take place.

Upside to nat gas is that, aside from CO2, it burns very clean so has fewer human health side effects than, say, coal or oil. Principly sulphur compounds.

#99 crowdedelevatorfartz on 01.04.21 at 7:02 pm

@#75 KLNR
“now now, children.
quit being petty and try to get along.”

+++++
It makes elevator “fumigation” look positively … cerebral.
Ponzie? Do you agree?

#100 Scrooge on 01.04.21 at 7:03 pm

I am probably the only guy in this country to have a bank teller mention “son, it looks like you have way over contributed to your TFSA!” and, on another separate instance (6 months later) “son, you have lots of contribution room available in your TFSA!”.

The sad part is that I’ve always been fully contributed to the exact allowable penny.

I shot for the moon and almost made it there. Oh well. I sacrificed a diverse portfolio for the chance to REALLY stick it to the tax man.

#101 crowdedelevatorfartz on 01.04.21 at 7:04 pm

@#81 Penny
“Ok, it’s renewable.
How is it better than burning natural gas as a power source?”
++++
Stop!
You’re making sense again!

#102 Bear on 01.04.21 at 7:08 pm

#59 Poor shmuck

Nothing wrong with making and having less money than others. Better to be a healthy and happy than rich. That being said 6000 is not rich. Your circumstance is not set in stone. Why not strive to one day be able to contribute. What if you change jobs and make more money, or inherit, start a successful business etc. You will be happy that the TFSA exist. Focus on yourself instead of being worried about other Canadians trying to improve their financial situation. You do not get ahead by holding others back. Best of luck, and remember we live in a country that anything is possible if you put your mind to it.

“This blog is for rich people only. It’s upsetting to read things like “go and find $6,000.” That’s almost 20% of my take-home in a year. I’m pinched in literally every direction. Groceries up, rent up, I have holes in my shoes, vehicle repairs, day-care, etc etc etc.

Your advice is for people who have already won the lottery and just want more more more more.
I think, Garth, that you’ve lost touch with the average Canadian. Your advice helps only the top of the top. I’d support killing the TFSA all together – y’all need to be taxed more.”

#103 Reximus on 01.04.21 at 7:08 pm

Predictions: 1: toronto housing will get more expensive this year
2: Buffalo Bills will win the SuperBowl

#104 You get what you pay for on 01.04.21 at 7:10 pm

Never count all your chickens before they hatch.
Aging populations and increasing deaths across the country will empty out neighbourhoods faster than you think.

#105 Nonplused on 01.04.21 at 7:12 pm

#6 Bob on 01.04.21 at 3:32 pm

“I don’t quite buy the “democracy” argument. Any savings vehicle, no matter how it’s structured, will disproportionately benefit those with money to save. If you’re scrimping by, paycheck-to-paycheck, then the TFSA contribution limit is kind of irrelevant.”

This is what makes it democratic. By limiting the contribution, whether at $6,000 or $10,000 or whatever arbitrary number they chose, it is not a tool for the extremely wealthy. Jeff Bezos, were he Canadian, would not have much use for it. He gets far better bang for the buck from the capital gains exemption, and the TFSA does not have nearly enough zeros in it for him to even notice that he has one. Or maybe I should go back to Galen, our most recent Canadian whipping boy.

On the other hand folks who are barely scrapping by can put in what they can. Their other savings options are not better. RRSP’s really only do their magic if you were paying taxes in the first place, so they are truly a tool for the well off (but again not the rich).

But, as I have pointed out many times before, most people who call for greater taxes on the “rich” don’t realize they are calling for higher taxes on their future selves. Sure, there are people who will never rise above minimum wage, for whatever reason. But most people start out at minimum wage and then through some combination of education and hard work climb up the ladder as they get older. As they do so they climb up the tax brackets.

When I look at my own income over the years, it has been highly variable. I started out delivering flyers. Then I worked fast food at minimum wage. Then I worked construction in the summers while going to school, which was better than minimum wage but not by leaps and bounds. Then I got a summer job at the utility as an engineering student. Better again, you could almost afford to live on that but not for the whole year. Then I got a job as an engineer in training and suddenly living on my own was a realistic proposition (except for all the student loans that had to be paid off). Once you are an EIT, if you show any aptitude for the job, your salary rises quite quickly towards the median. If you go on to management then the numbers add up. But then you get laid off.

I have a cousin who never went to post-secondary and was instead quite happy in fast food. But he had an aptitude for the restaurant business and quickly rose to management. Then he got poached by Red Lobster and quickly rose to managing a restaurant for them. Do you know what the manager of a successful restaurant gets paid if the store has good sales? You won’t get rich that way but part of his income was definitely in the top tax bracket. He could comfortably afford a house and a family. With no education beyond grade 12.

My daughter is on a similar path. She started out selling coffee in a small boutique shop for minimum wage. She is now in her final year of an education degree (although covid has made a mess of that too). Assuming we still need teachers post covid and she gets a job, the starting wages are modest but then she will over time march up to about $85,000 a year. And then there is that pension.

So this is what I dislike about the “rich vs. poor” argument. At least within the 99%, they are quite likely the same people, just at different points in their careers.

And yes I am aware that approximately 10% of the population will never rise above minimum wage for one reason or another, often associated with IQ. Whatever government programs we devise should be targeted at those people, not the kid that just started at Home Depot and will go on to manage the store. He’ll be fine. And if he is smart he will use his TFSA as Garth recommends.

My grandmother used to say “10% to God (church and charity), 10% to yourself (savings) and the rest you can spend”. That passé advice holds I think, no matter the income level. My grandfather was a simple carpenter and never rose above journeyman’s wages. But it was enough.

#106 Comrade on 01.04.21 at 7:14 pm

dunno, TFSA contribution or you can get this gem and with a few “touch ups” you can turn it into money making machine! (I assume the touch ups are with a wrecking ball)

the choice is yours!

https://www.realtor.ca/real-estate/22684036/56119-trans-canada-highway-hope

#107 Faron on 01.04.21 at 7:16 pm

#95 Adam Smith on 01.04.21 at 6:50 pm

the closest thing Canada has to a renewable energy ETF.

If you have the self-discipline not to diddle with your portfolio you can set up a TFSA account with wealthsimple trade and make your own fund comission free if on the TSX or NEO. Otherwise, the CAD is at 3yr highs relative USD so buying ICLN (NOT brokered by wealthsimple) might be timely or at least fulfill some USD exposure for diversification.

Prince Polo, are you drunk yet?

Waaaaay over my quota today. Yech.

#108 Bill on 01.04.21 at 7:18 pm

Garth if you stop writing maybe the infighting in the comments will stop. LOL

#109 Sail Away on 01.04.21 at 7:20 pm

I bought Choice Properties REIT (CHP.UN), TC Energy (TRP) and Nano One (NNO.V) today: two dividend stocks, one wildly volatile.

#110 Faron on 01.04.21 at 7:25 pm

#97 Flop… on 01.04.21 at 6:57 pm

Hey, you guys, I’m still waiting at the Swartz Bay Ferry Terminal.

It’s to Swartz Bay, not from. Get it straight flop.

SA, for your ride, please call me at 1 800 328 7448.

Hah! Grade school level, I know.

#111 Billy Buoy on 01.04.21 at 7:25 pm

Canada needs money. Easy pickings is the TFSA.

Easy low fruit to slowly pluck.

Bend over and get ready.

#112 Dogman01 on 01.04.21 at 7:26 pm

93:MF

The conclusion of the series. Civilization chapter 5: Work

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

He makes an interesting case for a moral work ethic and savings as a unique driver of prosperty.

#113 crowdedelevatorfartz on 01.04.21 at 7:26 pm

@#97 Flop
“Hey, you guys, I’m still waiting at the Swartz Bay Ferry Terminal.”
++++

Sorry Brudda.
You missed me by a day.
I’m heading to the Island tomorrow for a quick round trip.
If you’re still there tomorrow….
I’ll be the one on the elevator…..alone….smiling.

#114 Doug t on 01.04.21 at 7:29 pm

Well this could alter the world -Catherine Austin Fitts is in the house people

https://youtu.be/C1-0XKYAZII

#115 MyJohnson on 01.04.21 at 7:32 pm

Garth! Referring to comment #41
Question Garth.
The people who are in lock down are in big city’s. That’s there choice to live there right? Why should that be my problem ?
I live in the Bush, why would I get vaccinated???? I have not been effected from Covid. And to be honest I forgot it’s even still around. Maybe living in the bush on my acreage isn’t so bad after all. Just glad I have wifi to use online banking for my investments.
Thx
John

Ask me when you chainsaw your foot off. – Garth

#116 Nonplused on 01.04.21 at 7:38 pm

#12 Faron on 01.04.21 at 3:46 pm
#132 BillyBob on 01.04.21 at 6:15 am
#111 Bdwy on 01.03.21 at 10:11 pm
#109 IHCTD9 on 01.03.21 at 9:38 pm
#96 Sail Away on 01.03.21 at 8:08 pm
#81 Nonplused on 01.03.21 at 7:12 pm

“What’s interesting in this “exchange” is how my dissenting opinions, often laced with fact have, to you all, been taken as anger and hate.”

————————–

Dude, you are allowed to have your opinions and I will (hopefully) respectfully disagree with them. But you have to check out the words you choose. Unfortunately it reveals too much about your state of mind as word selection often tends to do.

Let us say that I chose the describe Garth in the following terms (Garth don’t delete it is but an example).

“Garth’s ideas are abhorrent and he is a selfish and backwards neocon who lacks understanding. He may be good at raising dogs but his racist and neocon right wing ideas will be the destruction of society. He lacks enlightenment.”

Do you see how that wouldn’t be an argument?

Now that said I have relatives who talk like that all day long. They think calling someone a wanker is the same as winning an argument. I try to avoid them. Covid has been a blessing in that way.

(PS Sail Away and I are not affiliated in any way, so I think you can look at his comments as addressing yours more so than coming to my defense.)

#117 truefacts on 01.04.21 at 7:38 pm

Garth,

Why not have a contest or something for people to submit their TFSA balances and a quick explanation of how they got there. You can do a quick post of perhaps the top 5 (I suspect the top 1 or 2 would be due to taking a “flyer” on something most people shouldn’t. Might help show the power of investing and tax-free growth…

#118 Long-Time Lurker on 01.04.21 at 7:40 pm

Zoolander 3. Script update.

Location: At the public library.

Mr. Wilson spies Hemlock Roans reading a magazine at the public library. With a smile, Hemlock Roans points Mr. Wilson to the outside foyer where they can have a conversation. Surreptitiously, Hemlock Roans drags his shoes across the library carpet — building up a static charge around his body in the dry wintry air.

As he approaches Mr. Wilson, Hemlock Roans smiles and extends his hand to shake Mr. Wilson’s. Mr. Wilson smiles and as their hands touch… Zap! Mr. Wilson receives an electric shock while Hemlock Roans laughs gleefully!

Mr. Wilson: “Ow! Drat that static electricity! Childish games, Roans! It’s unbecoming of you!”

Hemlock Roans keeps laughing.

Mr. Wilson frowns then says, “You took a long time to get back to me on new energy technologies, Roans.”

Hemlock Roans, detective: “My apologies, Wilson, but I had to give this subject a lot of thought. What have you found out?”

Wilson: “Jeanne Manning’s The Coming Energy Revolution is about inventors — famous, like Nikola Tesla — and many other inventors unknown to the general public. They have invented new energy technologies that go beyond any conventional technologies. She also wrote two newer books on the subject.”

Roans: “These new energy sciences and technologies are heavily suppressed. If you look at Vancouver Gadgeteers on YouTube, even though they got onto the local news media, they were harassed into stopping their activities.”

Wilson: “Everyone who goes into this area of research gets heavily harassed from what I’ve read.”

Roans: “Indeed. The question is: How to break free of the suppression? The elites are initiating their Great Reset and from the looks of it, it is one of energy scarcity and thus global control.”

Wilson: “What’s going to save us, Roans?”

Roans: “A ten-year-old school girl.”

Wilson: “What? Madness, Roans, madness!”

Roans: “Not so, Wilson. The inventor John Bedini let the new energy genie out of the bottle. For a science fair, he helped a ten-year-old school girl named Shawnee Baughman in Coeur d’Alene, Idaho, to build an electric motor who’s battery lasted far longer than her science teachers could explain by conventional science. John Bedini later called it The Simplified School Girl Energizer to chide the engineers who couldn’t explain it. What we need is a new paradigm — a new way of thinking — and we’ve got it!”

Hemlock Roans shows Mr. Wilson the magazine article he’s holding. It’s Jeanne Manning’s, “The Attractions of Magnetism: Could a little child be leading us to a free energy future?” which was published in Atlantis Rising magazine #25.

#119 Long-Time Lurker on 01.04.21 at 7:41 pm

Atlantis Rising (#25)
Jeanne Manning.

The Attractions of Magnetism: Could a little child be leading us to a free energy future?

The search for new energy technology takes us to northern Idaho (Coeur d’Alene) to meet a ten-year-old girl who won a science fair with a battery-charging motor. She describes it as an advanced design that extends the life of batteries for an amazing length of time. The motor was designed by John Bedini…

…He says his knowledge is on the internet, and now it’s up to others to build the devices. He says they have to experiment themselves, and it reminds me that he taught a little girl how to make a motor which drove science teachers nuts — to see a little motor made of plastic with no return paths for the magnets.

“The funny thing was that her father bent a coat hanger and put a coil above the motor and used it as a generator. The motor ran much longer under the load than they had expected.”…

…Earlier this year Shawnee Baughman wanted a science fair project. She found a book with plans for a motor, but it looked boring… Her father promised the parts for a better one. He works near John Bedini, who instructed Shawnee for a couple of hours a day for a few days…

…”We tested it for like a day, left it running overnight sometimes, but sometimes we’d leave it running for an hour or two hours or something.”

The other kids liked it; that’s how it was voted ‘best of show’. Adult judges gave her the other top prizes.

She flicks the wheel into motion and it runs.

“This is the electromagnetic coil. It has the power wire and the trigger wire… The power wire carries the voltage around the electromagnetic coil and it goes through to the transistor — that little black thing — then it goes through the resistor and the diode and the trigger wire flows it and then the voltage flow comes out again and returns to the negative side of the battery. …The electromagnet generates the power, then it spins the wheel; the electricity goes through the generator coil which lights up the light-emitting diode. Then it starts all over again.”

“We’ve been testing this battery for a month or so now. It’s supposed to have only 900 spins per nine volts, and that’s a nine-volt battery, so if it were to run out then it would have run out a long time ago!”

She has only changed the battery three times since building it six months ago….

http://www.rexresearch.com/bedini/atlris.htm

https://lh3.googleusercontent.com/VKI2WR9ohpt9rMWClaHOHGNEDDyZCJcZ5ox1GB1OMw=w1377-h804-no

#120 Stealth on 01.04.21 at 7:41 pm

Garth is right.

Most people won’t use the gift of tfsa.
Most are intelligent, some even high income, no matter.
Here are few examples from my past discussions on tfsa with best of intentions and no offense to anyone:

1. Discussion with lower income individual when I asked about a tfsa response was a question on what kind of animal was it and can we eat it. (Could be background related to.) that was the end of the discussion.

2. Discussion with what I would consider middle income ended with a question how could it be used for house purchase? Which is what they did, even after claiming and screaming up and down how great it was and that “this is the way” kind of approach. No matter, house won.

3. Discussion with higher income person ended up that they did not care and wanted to basically spend the income, even the statements that they would rather enjoy and have enjoyed 70+ apple devices over past 15 yrs than tfsa or apple stock.

Again I have great respect for all these people who posses at least the average level of intelligence.

Then the question I asked myself is who is really a customer of tfsa or a typical user / consumer?
Is that stat available, for example income levels, education, background, maybe even religion who knows …

The only answer I can think of is that the subconscious mind is making them do this and human kind hasn’t figured out what controls the subconscious.

Garth, hats off to you and your team for somehow having the ability to convince people to invest and them helping them. Very difficult, you are probably master psychologists.

Thank you

#121 Long-Time Lurker on 01.04.21 at 7:41 pm

Vancouver Gadgeteers HHO Hydroxyl System Installed in a Semi
9,997 views•Feb 10, 2009

BatteryReviver

…DISINFORMATION on the Internet on Energy Alternative Methods Systems – WHY??…

https://www.youtube.com/watch?v=f1WaMbY3__Y

OVER-UNITY John BEDINI SG?
2,813 views•Jul 22, 2015

Lablanc Engineering-two

https://www.youtube.com/watch?v=rFFo7F-EcX8

#122 Janers on 01.04.21 at 7:49 pm

I’m managing my family’s finances (this is a good thing as my husband is clueless) – Can I transfer my husband’s vested corporate stock (non-registered) into my TFSA as a spousal contribution? He’s literally a hair over me in income, pushing his tax bracket up from mine by 3%.

Taxable event. – Garth

#123 Nonplused on 01.04.21 at 7:51 pm

#59 Poor shmuck on 01.04.21 at 5:28 pm
This blog is for rich people only. It’s upsetting to read things like “go and find $6,000.” That’s almost 20% of my take-home in a year. I’m pinched in literally every direction. Groceries up, rent up, I have holes in my shoes, vehicle repairs, day-care, etc etc etc.

Your advice is for people who have already won the lottery and just want more more more more.
I think, Garth, that you’ve lost touch with the average Canadian. Your advice helps only the top of the top. I’d support killing the TFSA all together – y’all need to be taxed more.

———————————-

Old Jewish proverb: “Whenever possible, hang around the lucky.”

The first time you read that it will take some thinking to figure out what it really means.

#124 Keen Reader on 01.04.21 at 7:51 pm

@59 Poor Shmuck
Granted, some disposable income is best to fully benefit from this blog’s great advice. Choices?? Despite earning much less for several years, always filled RRSP first by pay delegations, then kept a modest lifestyle thru promotions, etc. Garth’s books and various blogs became useful even with a five-figure portfolio. Compound interest eventually made the bulk of its growth. So it’s possible to get ahead, no matter the starting point. Good luck!

#125 truefacts on 01.04.21 at 7:51 pm

@61 Sunshowers…

“Well, why doesn’t the worker themselves have a nail gun and cut out the middleman (you)? …it’s probably because you have enough money to buy the nail gun and the worker does not.”

________________________________________

Come on – a nail gun costs a couple hundred bucks – and a worker making $20/hr can’t afford one? Seriously?

The way things work is if the worker is being underpaid, he leaves to another job that offers more or goes into business for himself. That is why CAPITALIST countries are the richest in the world. Look at Korea for example – the North adopted communism, the south, capitalism. Today North Korea is dirt poor, and South Korea is the 11th largest economy in the world with world-beating companies like Samsung, LG, Hyundai…

Capitalism makes societies better off!

#126 Todd on 01.04.21 at 7:56 pm

So my Mom wants to give us TD stocks that were passed down from Grandma. If I read this correctly she could do this via our TFSA and avoid tax implications?

Nice try. – Garth

#127 Nonplused on 01.04.21 at 7:59 pm

#83 Gravy Train on 01.04.21 at 6:18 pm
#39 SoggyShorts on 01.04.21 at 4:47 pm
“What does productivity have to do with wages?” Gosh, you’re starting to sound a lot like Nonplused and Economystic.”

Why are you associating me in any way with Economystic? And anyway I haven’t seen him/her post in a long while. Too busy working on “The Great Reset” I suppose.

Anyway we share no ideas in common.

#128 Jimmy Zhao on 01.04.21 at 8:10 pm

People suspect that Trudeau jetted off in a taxpayer funded Challenger Jet to vacation in warmer climes during Christmas to work on his tan.
I know however that this is not the case since he has discovered an alternative way to darken his face.

#129 crowdedelevatorfartz on 01.04.21 at 8:29 pm

@#111 Billy Bouy
“Canada needs money. Easy pickings is the TFSA.
Easy low fruit to slowly pluck.
Bend over and get ready.
++++

Your Nom de plume is very similar to BillyBob

Perhaps you could change it to “Rhymes with pluck”?

#130 Tbone on 01.04.21 at 8:32 pm

Mawer global equity for the wife and me for tfsa .
And another 50 k of the same in my investment account.
The dividend cash was piling up .

#131 Prince Polo on 01.04.21 at 8:36 pm

Good thing I’m not *hic* driving tonight….

#132 Kaleycat on 01.04.21 at 8:38 pm

#6 Bob

Have your read Morneau’s book- pre election. He was as supportive of the TFSA as Garth is. Then he got elected and cut it in half. Obviously Liberal policy, against his better judgement. And you know what he does for a living….managing pensions.
I work with young people all the time. I’ve often heard them quote exactly what you say. Then I ask them where they plan to put their inheritances from their parents. It’s amazing how fast they change their opinions when they realize they’d cut their own throats by supporting the Liberals on the TFSA cuts.
Just because you can’t utilize all the room now doesn’t mean you won’t be able to in the future. Plan ahead.

#133 Mr Canada on 01.04.21 at 8:41 pm

#6 By Bob – I don’t quite buy the “democracy” argument. Any savings vehicle, no matter how it’s structured, will disproportionately benefit those with money to save. If you’re scrimping by, paycheck-to-paycheck, then the TFSA contribution limit is kind of irrelevant.
+++++++++++++++++++++++++++++++++++++
Bob misses the point, first, it’s $6k a year max. I know many that work pay-to-pay and contribute the max.
Pay yourself first with whatever amount you can afford but have a savings strategy in place and live within your means. Remember the compound effect?

Stop blaming the situation on circumstances and take personal responsibility. That is what democracy is all about.

#134 Poor Shmuck on 01.04.21 at 8:51 pm

#102 Bear on 01.04.21 at 7:08 pm

Thank you for that, Bear. You are 100% correct. I am healthy, my family is healthy, and we have fun – that’s enough. I’m rich in many other ways.

I should get busy finding ways to make more money instead of bitching about my circumstances on the internet.

#135 Faron on 01.04.21 at 8:52 pm

#116 Nonplused on 01.04.21 at 7:38 pm

#12 Faron on 01.04.21 at 3:46 pm
#132 BillyBob on 01.04.21 at 6:15 am
#111 Bdwy on 01.03.21 at 10:11 pm
#109 IHCTD9 on 01.03.21 at 9:38 pm
#96 Sail Away on 01.03.21 at 8:08 pm
#81 Nonplused on 01.03.21 at 7:12 pm

“What’s interesting in this “exchange” is how my dissenting opinions, often laced with fact have, to you all, been taken as anger and hate.”

————————–

I write with a strong and bombastic tone about your topics because you take such a milque-toast stance on them that gives them a sense of innocence that belies their malignancy. In March I attacked Garth and many others for his and their dismissive tone about the growing pandemic. However, Garth’s statements were rooted in facts known at the time mainly case numbers as they were known. Numbers we could all look at and agree upon. I’m pretty sure I used strong language to do so. I also erroneously attacked his idea that the market was at a bottom then. I was dead wrong. Embarrassingly wrong. Garth, rightfully, rebuked me ’cause it’s his blog after all. Regardless, Garth’s opinions and outright best-practice advice here is rooted in fundamental truth tested empirically and thus defensible. When it became clear that masks helped, he stepped onto that train. When it became clear that the vax is the way out, he stepped aboard. He’s reasonable and rooted in real information.

You, my friend, very often write about and argue points that I take no issue with nor should I or anyone because they are rooted in a sense of information reality that I may disagree with on a political/policy stance, but that is rooted in real approaches to our collective life and the information that exists. However, with your dalliances into Trumpian claims of US election fraud and ongoing failure to hear that renewables can and will be a major component of the global energy mix and strange belief that somehow there isn’t a wealth gap or if there is one, it’s notional, are playing with a broken set of legos. If it’s an attack on you to call a spade a spade, then so be it.

I qualified recent comments with dovish sentences because I’m certain that you are a stand-up citizen in the real and far more important areas of life that we all actually operate in. My firm belief is that almost all people on this planet are good and that perceived badness is often a failure to understand one another. That belief can co-exist with a genuine dislike and struggle with the ideas that some people hold. In your case it’s those ideas rooted in the growing disinformation age that irk me the most.

I’m done wasting Garth’s time with this. Have a good evening.

#136 BobC on 01.04.21 at 8:53 pm

#123 Nonplused
I don’t how old you are but when I was young I worked up to 3 jobs. Have you considered maybe 20 hours A week at a McDonald’s type job? Invest $600/$700 a month until you have a decent amount compounding?
“ If it’s important to you, you’ll find a way. If not you’ll find an excuse.”

#137 crowdedelevatorfartz on 01.04.21 at 9:09 pm

I dont know what all you anti-vaxx’ers are moaning about.
At the pathetic rate Canadian bureaucracy is rolling out the shots…..it’ll be sometime in 2029 when you will finally be cornered for yours

#138 Stone on 01.04.21 at 9:22 pm

#125 truefacts on 01.04.21 at 7:51 pm
@61 Sunshowers…

“Well, why doesn’t the worker themselves have a nail gun and cut out the middleman (you)? …it’s probably because you have enough money to buy the nail gun and the worker does not.”

________________________________________

Come on – a nail gun costs a couple hundred bucks – and a worker making $20/hr can’t afford one? Seriously?

The way things work is if the worker is being underpaid, he leaves to another job that offers more or goes into business for himself. That is why CAPITALIST countries are the richest in the world. Look at Korea for example – the North adopted communism, the south, capitalism. Today North Korea is dirt poor, and South Korea is the 11th largest economy in the world with world-beating companies like Samsung, LG, Hyundai…

Capitalism makes societies better off!

———

You just forgot the part where capitalism requires dregs like Sunshowers to make it work. The dregs are required to consume to the benefit of their overlords in order to produce dividends. In return, the dregs are given a powerless voice to complain inconsequentially via anonymous comments on blogs. Overall, the overlords win and laugh all the way to the bank. As for the dregs, well, dregs will be dregs. They don’t matter.

The end.

#139 Owl on 01.04.21 at 9:32 pm

Inspired by this TFSA idea, I planned to give my grandson the beginning of one for his 18th. But it turns out that in NS and some other provinces you need to be 19 to open one and also 19 to open a Wealth Simple account of any kind.

#140 VicPaul on 01.04.21 at 9:34 pm

#109 Sail Away on 01.04.21 at 7:20 pm
I bought Choice Properties REIT (CHP.UN), TC Energy (TRP) and Nano One (NNO.V) today: two dividend stocks, one wildly volatile.

*********
Sail, edify me on why TC was a better pick over ENB?
Line 3 just got permitted, construction underway. A recent reversal of a mainline in the States from Patoka, Ill. opens up a pathway for Alberta’s best to the gulf refineries. Both great cashflow companies with nice divs and high quality assets but, Biden has stated he’ll kill KXL so, what am I missing?

M57BC

#141 AlbertaGuy (cheering) in AB on 01.04.21 at 9:39 pm

Complete domination over Russia tonight…tomorrow the Gold.

If you cant find 6000 maybe you can find 50 and turn it into 4.5M on the 50/50. Pot stands at 8.7M and still over 2 hrs to buy tickets.

https://hockeycanada.ca/en-ca/team-canada/men/junior/2020-21/win/5050

#142 Karlhungus on 01.04.21 at 9:45 pm

SunShowers on 01.04.21 at 6:03 pm
#53 Keyboard Smasher on 01.04.21 at 5:14 pm
I see that Garth has gone full-on Stalin mode with the censorship of legitimate vaccine concerns…

lol very humorous to me that someone would accuse Garth of going “full-on Stalin mode” in the comments while he allows a commie to walk the halls.

Oh the irony

#143 Kev on 01.04.21 at 9:45 pm

Here’s a story for you… Real-estate markets have been on fire, yet got search RE/MAX and the like on this Government website that tells you which companies took the CEWB (Canadian Emergency Wage Benefit) https://apps.cra-arc.gc.ca/ebci/hacc/cews/srch/pub/dsplyBscSrch?request_locale=en I thought there was criteria to qualify for that and I bet it wasn’t having one of the Best years ever. More tax payer money down the tubes that our kids kids will be paying for the next forever…

#144 DON on 01.04.21 at 9:57 pm

@UseTab

The question should not be “What is a Faron?” rather it should be “Why has this place been allowed to become a high school clique?”

***********

That is a good question?

@Faron…nicely done keep the emotion and fault finding out of the argument. Took me a while to do so. A balanced argument is the way to go.

#145 Jacky on 01.04.21 at 10:07 pm

Hi Garth, I followed your blog for 6 years. I have balanced portfolio between non-reg and RRSP/LIRA. I am not planning to use any of TFSA before my retirement 20 years later. Would you suggest to have balanced portfolio within TFSA? Or should I go with 100% equity ETF and ride out any storm?

Since I followed your blog, I have listened to you and able to remain calm and not sell on panic during the last few market crashes. Currently have little over $100k is each of my and my spouse’s TFSA. And around $300k in non-reg and $400k in LIRA and RRSP between both of us. Also have defined pension for both of us with current employer.

Thanks in advance

#146 DON on 01.04.21 at 10:14 pm

#57 the Jaguar on 01.04.21 at 5:21 pm
#47 Sail Away on 01.04.21 at 4:52 pm

Double sigh. What usually comes next is faked contrition and acknowledgement of deep seated emotional conflicts. A sympathy ploy. Then it waits for its next victim to come along. The victims generally all successful and confident alpha male types. At the bottom of what seems an endless well of neediness is naked desperation to be accepted as an equal, which of course will never be true.
My idea of nothing.
************************

That about sums it up. A predictable predatory action. Beta moves.

#147 Diversified in Mississauga on 01.04.21 at 10:16 pm

#59 Poor Schmuck

Stop the pity party.

Kids are expensive, if you couldn’t afford them why did you feel entitled to have some?

Own your situation.

#148 IHCTD9 on 01.04.21 at 10:31 pm

#38 Faron on 01.04.21 at 4:47 pm
#168 crowdedelevatorfartz on 01.04.21 at 3:04 pm

@#165 IHCTD9

++++

Greta would be disappointed in your “carbon signature”….. and on her birthday but what the hell.

Common misconception CEF. Wood is a renewable carbon source. The mathematical ideal would be to sink that wood abyssally beyond the carbon compensation depth so it acts as a geological sink. But doing so would cost more carbon than saved. Scrap wood will be CO2 eventually so IHTSC9er may as well enjoy the heat from it. A clean burning stove is one of the best way to do it in terms of polluting co-emissions. Greta would give tractor man a gold star or maybe even a peck on the cheek in that euro way.
—-

It is also my understanding that burning it cleanly is better than just letting it rot in a pile too, as anaerobic decomposition still frees the carbon, but also produces methane which is even worse than the CO2.

So, if I buried the ashes from the stove – would the circle be carbon negative?

Greta best pass on the peck either way, too many coal-rolling iron antiques on the property. She might unwittingly show up while I’m firing one up…

#149 joblo on 01.04.21 at 10:31 pm

All levels of Gooberment in Kanada providing endless entertainment.

#150 Phylis on 01.04.21 at 10:46 pm

Secret note to Brit. Welcome to the machine.

#151 Garth's Son Drake on 01.04.21 at 10:52 pm

Garth, how do you expect Canadians to figure out a TFSA when they can’t even figure out a mandatory mask policy?

So many people in Canada start their backed in cars in their garage, let it idle for 5 minutes to ensure a good stock of CO, and quickly close the garage door upon leaving to lock in fumes.

Combine that with the glyphosate roundup epidemic among most boomers who are hell-bent on getting every single weed and now you know why simple things are hard tasks for people here in Canada.

Finally, BC Assessment, the not-so-independent arm of the gov decided to hold back on media pumping FOMO about house prices and hold a BS line. Vancouver had about a 5% pop while everywhere else including the Okanagan basically didn’t move according to these puppets.

So, now there are houses all over BC with recorded sale prices averaging 200k over-assessed property values that were just released way off the mark, proving that BCA needs to be decommissioned.

Realtors can’t say what a deal it is under assessed value. Look, look!

Buyer: why is the price tag 200k over-assessed values just released?

Realtor: oh BC Assessment is wack. Don’t worry about that. Just make sure cheque is certified.

Insider: government mandate, suckers. Wait until you find out why? ;)

Books are cooked. Throw principles out the window.

#152 oohkatz on 01.04.21 at 11:01 pm

Love TFSA.. only decent thing a Can govt has done in decades.. but what you’re apparently missing is that a whole whack of folks in this grand country are heavily indebted and they should be paying down their debts before investing in a TFSA.

#153 VicPaul on 01.04.21 at 11:06 pm

#134 Poor Shmuck on 01.04.21 at 8:51 pm
#102 Bear on 01.04.21 at 7:08 pm

Thank you for that, Bear. You are 100% correct. I am healthy, my family is healthy, and we have fun – that’s enough. I’m rich in many other ways.

I should get busy finding ways to make more money instead of bitching about my circumstances on the internet.

*********

With an attitude like that, you’re half way there. The other half requires sacrifice, commitment, and time.

M57BC

#154 Alberta Ed on 01.04.21 at 11:11 pm

TFSAs topped up. Thanks, Garth. And Happy New Year!

#155 TurnerNation on 01.04.21 at 11:20 pm

Interesting intersection. How many elected reps were fired this week when their travel trips (over weeks) suddenly to light?
Could we call this a plausable purging?

From that ‘leaked document’ that was debunked here this line is still ringing in my head:

” The other reason I am doing this is because roughly 30% of the committee members are not pleased with the direction this will take Canada”

….
Ontario. Alberta.

https://calgary.ctvnews.ca/vacation-fallout-kenney-announces-resignations-of-mlas-from-ministry-roles-legislature-committees-1.5252979
“Resignation of several prominent UCP members from their committee roles”

#156 SunShowers on 01.04.21 at 11:20 pm

#125 truefacts on 01.04.21 at 7:51 pm
Come on – a nail gun costs a couple hundred bucks – and a worker making $20/hr can’t afford one? Seriously?

Well, I was hoping that it would be fairly obvious that the entire thing was an analogy (as if somebody being paid $20 an hour to nail boards together wasn’t itself a dead giveaway), with the nailgun serving as a representation of the means of production ranging from simple tools to entire automated factories, but alas…

#157 Blinded by the Bud light on 01.04.21 at 11:37 pm

“Half of Canadians don’t know a TFSA can hold stuff like ETFs or equities.”

And many in the other half don’t know what an equity is!

#158 fishman on 01.04.21 at 11:37 pm

Nonplussed, That old Jewish proverb “Hang around the lucky” comes from fishermen. “If you want to catch fish get with a highliner”. Two Jews witnessed a highliner in action & up close. Became first Christians. Succeeding Jews passed the proverb on. Changed it a little cause who wants to acknowledge their good luck to divine intervention.

#159 SunShowers on 01.04.21 at 11:48 pm

Whoops, finger slipped and hit the enter key.

#125 truefacts on 01.04.21 at 7:51 pm
The way things work is if the worker is being underpaid, he leaves to another job that offers more or goes into business for himself.

Imagine thinking that’s a valid choice. It’s like saying if you don’t want to be mugged by a guy in an alley, you’re free to be mugged by a different guy in an alley 3 blocks over!

And if workers could afford the means of production, I’m sure many would go into business themselves! But as I had established previously, only the rich are allowed to get richer.

“That is why CAPITALIST countries are the richest in the world. Look at Korea for example – the North adopted communism, the south, capitalism.”

Capitalist countries are the richest in the world because they have a history of exploitation. Would the USA be as wealthy as it is today if it didn’t have essentially free labor through slavery for a few hundred years, reaping the compounding wealth? Nope.

Would UK/France/etc be as wealthy as they are today if they hadn’t colonized and plundered other nations hundreds of years ago, reaping the compounding wealth? Nope.

Why bring up North Korea? India is a capitalist nation and has been for hundreds of years, and yet it is beset by poverty. As of 2018, 99% of Indians make less than $20 USD PER DAY (adjusted for 2011 purchasing power parity).

So why is South Korea richer than India? Because South Korea (and the US/EU) outsource their operations to India to take advantage of that poverty and deregulation, and still pay pennies. Now capitalism just steals human resources rather than natural resources or the humans themselves.

Capitalism creates winners and losers. South Korea is a winner, India is a loser.
Money, resources, and wealth flow from losers to winners.
Under capitalism, there can be no winners without losers. It is zero sum.
Under capitalism, there is no “rising tide”. Some boats will rise specifically because they attack and sink the other boats and plunder them.

Remember how I said that in 2018, 99% of Indians make less than $20 USD per day (again adjusted for 2011 USD PPP. For the love of Dog research what that means before attempting to address this)? Wanna guess what that figure was back in 1981?

99%.

#160 The Totally Unbiased, Highly Intelligent, Rational Observer on 01.05.21 at 12:05 am

“Yes, this is more boring than arguing about whether or not Trump won (he didn’t), if you should get vaxed (of course) or how great Bitcoin is (it’s toxic).” — Garth

This claim about President Donald J. Trump losing the 2020 presidential election is disputed.

#161 SoggyShorts on 01.05.21 at 12:18 am

#61 SunShowers on 01.04.21 at 5:31 pm
#36 SoggyShorts on 01.04.21 at 4:45 pm
If I hire someone to nail wood together for $20/h and then buy an expensive nailgun so that he can do it twice as fast, do I owe him $40/h?

Yes, precisely.
The laborer is still doing the work themselves on your behalf, so they are entitled to the value created by their labor. The work would not be getting done at all at any price if not for the worker. It’s not as if you are doing any additional work to deserve the additional $20 per hour.

*********************
But he’s not doing more work still just 8h a day.

Where’s my incentive to buy that nail gun?
Where are my increased revenues to expand and hire more nailers?
Why should I spend all that time finding better wood and nail suppliers?
Why should I scrimp and save to make that bulk wood & nail order?
Why did I spend all those hours trying to get more clients?
Why did I go hungry and blow through all our savings during the first years?
Why did I borrow all that money to open a wood nailing company in the first place?

If I’m supposed to pass on every new penny earned onto my employees, what’s the point in ANY of it?
———————————
Even with the capitalist gains I’ve made I often regret starting a business instead of the comparatively risk-free and stress-free life of the worker bee I had before.

Without the possibility of such gains, I’d never have even considered it, nor would many(most? almost all?) entrepreneurs.

Sorry, but until we make robots who service themselves and perform every single non-art related task for us, communism sucks.

#162 Nonplused on 01.05.21 at 12:20 am

#136 BobC on 01.04.21 at 8:53 pm
#123 Nonplused
I don’t how old you are but when I was young I worked up to 3 jobs. Have you considered maybe 20 hours A week at a McDonald’s type job? Invest $600/$700 a month until you have a decent amount compounding?
“ If it’s important to you, you’ll find a way. If not you’ll find an excuse.”

——————————————–

All the people I know that the CRA follows up on are working 35-50 hours a week. Nobody, not even the CRA, has time to worry about the 20 hour a week people. They just don’t matter. Unless they are part time dentists. Some of the moms do that.

#163 Nonplused on 01.05.21 at 12:30 am

Here is a bit of 80’s for those Robinhood traders that think they know everything. We’ve seen it before and you will not beat the chess masters.

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

#164 Mel on 01.05.21 at 12:35 am

Garth did you get the jab yet?

https://youtu.be/yMBNCpAW7cw

#165 Dmitry on 01.05.21 at 1:00 am

You want to stay in lockdown for a couple of years? Then resist the vax. – Garth

Garth, no amount if vaccination can end lockdowns. Lockdowns are happening because ultimately that is what population presently desires. You said it yourself- Trudeau shall be re-elected. It is important to remember that shall be re-elected to continue lockdowns, not to end them.

We did not have flu lockdowns not because we had flu vaccines. It is faulty logic that leads you to link vaccines and end of lockdowns. Also couple years is too optimistic- folks will want to ride this for longer than couple years.

So yes, “we” collectively want to stay in lockdown for multiple years. Now following your logic “we” should resist vaccination because “we” want to stay in lockdown. But again, that is false logic- vaccination is just a temporary perception that something us being done, whether you resist it or not is not going to have direct bearing on lockdowns. Sort of like taking off your shoes and emptying your water bottles before boarding your flight and believing that it affects flight safety. It is theater for the masses. Narrative will evolve, lockdowns shall persist.

#166 Dr V on 01.05.21 at 1:18 am

35 Sunshine – It’s $100B more than what has been
typically held in cash accounts ie an increase, not the total. Bloomberg had a good article explaining.

It has been misinterpreted much as “40% of Canadians pay no tax” when it should read “pay no net tax” meaning 40% receive benefits matching or exceeding the tax they pay.

I hope to be part of that 40% in a few years.

65 facts – That top quintile includes the wealthiest Canadians. Take out the 1%, or even 0.1% and that average will drop and provide a better representation of the typical 20%er.

#167 Sail Away on 01.05.21 at 1:37 am

#140 VicPaul on 01.04.21 at 9:34 pm

Sail, edify me on why TC was a better pick over ENB?

————–

A couple reasons: one, I already have ENB, and two, my good friend Nelson is convincing:

http://canadiandividendinvesting.com/tc-energy-my-favorite-stock-for-2021/

#168 Spike E484K on 01.05.21 at 2:57 am

Look out! Evolution in action.

#169 SoggyShorts on 01.05.21 at 3:32 am

#59 Poor shmuck on 01.04.21 at 5:28 pm
This blog is for rich people only. It’s upsetting to read things like “go and find $6,000.” That’s almost 20% of my take-home in a year. I’m pinched in literally every direction. Groceries up, rent up, I have holes in my shoes, vehicle repairs, day-care, etc etc etc.

Your advice is for people who have already won the lottery and just want more more more more.
I think, Garth, that you’ve lost touch with the average Canadian. Your advice helps only the top of the top. I’d support killing the TFSA all together – y’all need to be taxed more.

*********************
30K take home is minimum wage plus a couple of extra shifts.
There’s a whole lot of people between “rich” and minimum wage.

Also, your contribution room grows for when you eventually do make more money so unless you’ve completely given up, wanting to get rid of the TFSA is an attack on your future self.

#170 Gulf Breeze on 01.05.21 at 4:20 am

I put 63,000.00 into tfsa account from 2016 to 2019. I made 60,000.00 as of late 2020 by investing in precious metals and sustainable energy.

Will buy more sustainable energy funds soon. Want to see if the Dems take Georgia first.

Gold should go up — but it’s environmentally dirty and gold bugs are a weird bunch. It was only a matter of time before I donned a MAGA hat and started lecturing the ‘sheeple’ about ‘sound money’.

#171 Gulf Breeze on 01.05.21 at 4:24 am

Oh, almost forgot. Thanks for the tfsa, Garth! You have helped a lot of people who would never have benefitted so remarkably, otherwise.

#172 Gulf Breeze on 01.05.21 at 4:31 am

Nonplused,

You are absolutely right. Considering how things are playing out for so many people now, higher incomes should be taxed more.

Super happy I was able to benefit from tfsa and will be just as happy to pay a lot more in tax. I don’t understand boomers who bitch about taxes going up. It seems very odd to me.

#173 BillyBob on 01.05.21 at 5:41 am

#57 the Jaguar on 01.04.21 at 5:21 pm
#47 Sail Away on 01.04.21 at 4:52 pm

Double sigh. What usually comes next is faked contrition and acknowledgement of deep seated emotional conflicts. A sympathy ploy. Then it waits for its next victim to come along. The victims generally all successful and confident alpha male types. At the bottom of what seems an endless well of neediness is naked desperation to be accepted as an equal, which of course will never be true.
My idea of nothing.

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

As insightful as always, Jag. And Flop’s line about still waiting at the ferry made me laugh out loud. As did Sail Away’s grandiose invocation of Biblical quotes. There’s some seriously funny people on this thing.

Afraid I don’t see multiple opinions in consensus as a “pile-on”, Faron. A bit of a tell on your age bracket, obviously you’re still at “the whole world is against me!” stage. Don’t worry, it’ll pass. Well, maybe not. Victoria IS Victimhood Inc. Nature/nurture, all that.

I mean, people disagree with me all the time, and that’s fine. The odd one here or there, that’s normal and healthy. But, when a whole bunch are saying the same things, I do try to have the humility to look in the mirror. Doesn’t mean I’ll automatically change my ways, I’m not a politician. But constant reassessment is vital. Especially in the age of AI echo chambers.

I would suggest the long diatribes against imagined tormentors are counterproductive. That’s just weird and frankly, borderline narcissistic.

Meanwhile, I’m very pleased to see the government here has announced that as of February 1 ALL Czech citizens will be able to register for the vaccine. I’ll be on the website the same day. They’ll be prioritizing by age and medical circumstances – as they should – so it could be awhile yet but I’ll be getting Pfizer’ed the first change I get.

From a risk management perspective it’s a no-brainer.

https://english.radio.cz/babis-all-can-apply-coronavirus-vaccinations-february-8704527

#174 Renaldo Humphries on 01.05.21 at 7:23 am

DELETED

#175 the Jaguar on 01.05.21 at 7:30 am

@#172 BillyBob on 01.05.21 at 5:41 am

So smart, the Czech approach. Get organized, have a plan, get going. Approx 11 million people.
Create a registry, get signed up and administer based on age/medical conditions.
Sure hope Alberta does something similar. With a young demographic here I might get the jab sooner than later, lol.

#176 maxx on 01.05.21 at 7:31 am

@ #6

Whiner’s argument. I know many who plead poverty but spend their disposable income on full retail crap as soon as their paychecks arrive. Absolute crap. Oh, and clawing their way “up” on the property ladder.

With all due respect to the many who are currently suffering job loss, the rest could easily dump 18% of their salaries into a RRSP, take the tax credit and dump that into a TFSA.

And still have cash left over.

Cash is, and always be, king.

#177 Sail Away on 01.05.21 at 7:45 am

#110 Faron on 01.04.21 at 7:25 pm

SA, for your ride, please call me at 1 800 328 7448.

————

I called but missed you. Your assistant said if I do reach you to mention that your special order of extra small condoms arrived.

#178 BLTandfries on 01.05.21 at 8:01 am

@Nonplused:

“I am hopeful Trump will concede on Jan. 7th. He’s exploited all his options and the clock has run out.”

Respectfully, if you think this, then you are reading the wrong material. Trump is waiting for Team Biden to concede, graciously affording every opportunity along the way. But if The System persists in being obstinate and insisting “there was no fraud”, Insurrection Act it will be.

I agree with comments to the effect that, dumb as many of us think it would be, Trudeau would be in majority territory as it stands. But I am hopeful that Trump’s second term marks the beginning of the dirt being spilled on all global leaders.

What rock do you guys live under? Please return. – Garth

#179 SunShowers on 01.05.21 at 8:06 am

#160 SoggyShorts
I already addressed those concerns in the very post you’re replying to.

And we ALREADY have self-servicing robots that eliminate tasks (rather than making them more efficient for people to perform), and what has that accomplished? Did the other McDonald’s workers get a raise when people working the tills were laid off in favor of automated order kiosks? Did McDonald’s lower their food prices? Is McDonald’s still making CPP contributions for the people they laid off? Of course not.

The logical conclusion of your philosophy is a world where only the capitalists are “employed”, and having been replaced by machines, former workers are now homeless and jobless, lined up single file down Main St sitting on mats trying to sell their crude handmade art to the passing capitalists on their 3 Martini Lunch breaks to survive.

#180 BLTandfries on 01.05.21 at 8:10 am

DELETED

#181 crowdedelevatorfartz on 01.05.21 at 8:22 am

DELETED

#182 David Hawke on 01.05.21 at 8:25 am

Oh, stop flogging that poor dead horse as you know darn well that the Cons only doubled it as an election ploy!

Facts are facts. The TFSA is egalitarian and democratic, open to all. RSPs are geared to benefit higher-income earners. Trudeau hurt a lot of people with a crass partisan move to gut TFSA contributions, while accomplishing no public goal. Bad policy is bad policy. Stop trying to paper it over. – Garth

#183 crowdedelevatorfartz on 01.05.21 at 8:28 am

@#178 BLT
“But if The System persists in being obstinate and insisting “there was no fraud”, Insurrection Act it will be….”

++++

The only thing more obstinate than Trump is his brainless followers.

Maybe you’ll realize the man raging about his “stolen” election and nothing else while thousands of his supporters drop dead daily…..will finally sink in when the US death toll hits 1 million?

Trump is all about Trump…..and no one else.
I cant wait until the millions of fools that have been supporting him finally realize what a total scam artist and grifter he truly is.
Throw him to his own mob.
He’d be torn apart.

#184 SunShowers on 01.05.21 at 9:23 am

“Facts are facts. The TFSA is egalitarian and democratic, open to all. – Garth”

Ah yes, how beautiful and egalitarian a system that allows the rich and the poor alike to shelter an extra $6000 per year from taxation. Reminds me of a famous quote:

“In its majestic equality, the law forbids rich and poor alike from sleeping under bridges, begging in the streets and stealing loaves of bread.” -Anatole France

#185 millmech on 01.05.21 at 9:26 am

Why would anyone put money into a TFSA in Canada, it is a suckers bet. Everyone and I mean everyone buys housing and is crushing it. Why buy low return stocks, bonds, etfs etc that require work and time.
Just listen to the average person and what have they made the most money on as an investment is housing. As soon as as you can get equity out of your initial investment what do you do, you buy another house, rinse and repeat.
There are so many people who have made six figure returns in a year on a small tax free investment that is not complicated, just buy and watch it print money.
Remember all the young posters here complaining about how the boomers won the housing lottery, well it is still paying out for those who got in and is still paying out for the next while.
Most of the people I know now “own” multiple properties and each one has returned more than what you have put into a TFSA in its lifetime in months.
If housing corrects most people will be screwed as the places they own are not cash flow positive and minimal equity exists to cushion for a downturn but according to them the “Government ” will not let it happen. They see the PTB will do whatever it takes to keep housing going up and they “have their backs”.
An example is one of my coworkers sold his house, is looking at buying a bigger house and in the six weeks of looking is being priced out, full blown panic now as he has “lost over 50k in equity appreciation and everything he is trying to buy just keeps going up. He is looked upon as an idiot by everyone as he should have just got the financing to buy another million dollar house(there are mortgage brokers out there that help with the qualifying now, I have been told they are even lending clients money for down payments) and rented out his old house.
This is the way!

#186 Love_The_Cottage on 01.05.21 at 9:29 am

#183 crowdedelevatorfartz on 01.05.21 at 8:28 am
I cant wait until the millions of fools that have been supporting him finally realize what a total scam artist and grifter he truly is.
___________
It won’t happen. If they haven’t seen it at this point they never will.

#187 TurnerNation on 01.05.21 at 9:43 am

Right on schedule here come full lockdowns and curfews in Quebec, and Ontario likely within a week.
Which schedule? The one that was ‘leaked’ in Oct then debunked in a number of sources.
I’m sure inter provincial border check points are coming.
This is it, the complete take over of Kanada and more importantly, the UBI.
This is war, or borders remain sealed and the economic attack intensifies.

– What’s interesting is that this economic and social attack is being played out in all (former) First world countries at the same time.

………
As Alphonse noted:

“#74 Alphonse Kehaulic on 11.25.20 at 7:40 pm
28 days lockdown. Symbolism. Two 8s = 88 = double infinity. In other words: Endless, in perpetuity, no timeouts for your lockdowns. Put it to you this way: From now on there will never be a time of no lockdowns.
28 Days Later was a movie about a pandemic. Just a coincidence I’m sure.””

#188 Dharma Bum on 01.05.21 at 9:53 am

Four More Years!

Four More Yea….wait, What?

https://www.indiatoday.in/world/story/donald-trump-vows-to-fight-like-hell-to-hold-on-to-presidency-1755997-2021-01-05

#189 Mattl on 01.05.21 at 9:56 am

#37 Blobby on 01.04.21 at 4:47 pm
I can invest into TFSA

My issue is finding people I trust with said money. I have multiple “balanced growth” rrsp’s (a whopping – lol – $200k in total, ish) and none of them have averaged much of note over the last 10 years. I obviously suck at picking people to manage my portfolio. Unless Garth is accepting new customers, I feel at a loss as to which people to trust with my investments.

———————————————————–

I suspect at 200K Garth might take you.

If not, then the ROBO’s are a good option as you build your portfolio. That is what I have been doing and using and my return net fee’s since 2016 has been a hair over 7%. Won’t recommend one here out of respect for the host but lots of set it and forget it options in the market that should return 6-7% net fees and are very easy to access.

#190 Dharma Bum on 01.05.21 at 10:03 am

#183 Crowdy

I cant wait until the millions of fools that have been supporting him finally realize what a total scam artist and grifter he truly is.
___________

He reminds me of that dude that just got sentenced to 120 years in the slammer for conning stupid gullible people into joining his scam of a cult. NXIVM guy. You know who I mean. (Hint: Keith Raniere.)

The Canadian public (aka: Average Schmoe) is too deluded to realize that they are being taken for a ride. They are so eager to hail their “leader” and lavish praise upon him. In the meantime, they are all being effed big time.

Read it and weep!

https://www.thecut.com/2019/05/the-most-disturbing-details-from-the-nxivm-sex-cult-case.html

Justin’s involvement with and support of the WE scam also bears eerie resemblances to the culture of deception perpetrated by the most vile of fraudsters at the expense of the stupid.

#191 Do we have all the facts on 01.05.21 at 10:05 am

#125 Truefacts

South Korea is not the place to live if you are over the age of 65. In 2019 close to 50% of the 7,700,000 South Koreans over 65 were living in abject poverty.

In Canada 160,000 households have a total net worth of $3.0 trillion or 25.6% of the net worth of all Canadians. This represents an average net worth of $18,750,000 per
household for the top 1.0% of all households.

As mentioned previously the average net worth of 6,400,000 households in the bottom 40% was only $22,000 in 2019.

As individuals in the bottom 40% of households near retirement, or are attempting to survive in retirement, it is worth considering that in Canada the minimum income of an individual 65 years of age or older will be $18,500/year from all sources.

The combination of CPP and OAS could increase total monthly income for someone over 65 to $2,200 per month or $26,400 per year. This annual income represents the cut off level for poverty in most urban areas in Canada.

Simply put without additional income from a retirement plan millions of Canadians over the age of 65 will face an uphill struggle to stay above the poverty line.

Capitalism is definitely the right system for many but it should not ignore the fact that poverty for many is often a consequence of unfettered greed.

There but for the grace of God ….

#192 45north on 01.05.21 at 10:07 am

These are among the reasons everybody needs to invest. Not save. Invest. And the first place to do this is inside a tax-free account. The TFSA.

Alterna Bank is promoting its TFSA plan. There are four ways to save but it looks like they’re all savings. No investment.

https://www.alterna.ca/Personal/Investments/TaxFreeSavingsAccount/

#193 Mattl on 01.05.21 at 10:21 am

#156 SunShowers on 01.04.21 at 11:20 pm
#125 truefacts on 01.04.21 at 7:51 pm
Come on – a nail gun costs a couple hundred bucks – and a worker making $20/hr can’t afford one? Seriously?

Well, I was hoping that it would be fairly obvious that the entire thing was an analogy (as if somebody being paid $20 an hour to nail boards together wasn’t itself a dead giveaway)

—————————————————

Correct, nailing boards together pays much more then 20 an hour. A scrub on a framing crew would make closer to 30 an hour. 20 an hour is lawn mowing wages in Canada.

The problem with the jobs above? No one wants to do them. My buds are mostly in construction / landscaping and they can’t find reliable workers to pay 25+ an hour. Framers, machine operators. All stuff that can be easily trained on, pays 25-35 an hour, has huge potential to bill overtime – work as many hours as you want.

But, those jobs are looked down on, even when though they can generate 60-80K a year and provide a path to owning your own business. Do you have any friends that work in the trades? I bet you don’t, and I suspect you would think little of a guy that goes out, works 8-6 every day and makes 2x what you do.

Herein lies the problem – there are a LOT of well paid labor jobs in Canada, the problem is no one is interested in being a laborer any more. What you and your buds really want is a cushy office job that pays 100K per year, 35 hours a week.

#194 Sara on 01.05.21 at 10:25 am

#177 Sail Away on 01.05.21 at 7:45 am

I called but missed you. Your assistant said if I do reach you to mention that your special order of extra small condoms arrived.

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

SA is projecting again. No wonder he and his wife have (in his words) “hideously disappointing marital relations”.

#195 Sara on 01.05.21 at 10:58 am

Faron, A little advice if I may. Never defend yourself or your viewpoints to the narcissistically or sociopathically inclined who frequent the comment section here. The lost boys love the smell of blood and you will only incite them further by taking what they perceive (rightly or wrongly) as a defensive posture. Attack only! Why should they have all the fun at your expense?

#196 IHCTD9 on 01.05.21 at 11:07 am

#191 Do we have all the facts on 01.05.21 at 10:05 am
#125 Truefacts

South Korea is not the place to live if you are over the age of 65. In 2019 close to 50% of the 7,700,000 South Koreans over 65 were living in abject poverty.
___

South Korea is usually on top when it comes to infertility rates – right around 1.0 which is a horror show. Last year SK logged their first ever population drop. In 2019, their fertility rate was .92 – 50 years before it was 4.53.

By 2067, SK will have less people than Canada, and half of them will be 65+. SK females do not want marriage or kids. If SK does not do something to fix this, South Koreans will be heading for extinction.

They need to learn to love massive immigration asap. It’s too late already though, you can’t take a 99% homogeneous country and over run it with newcomers overnight and expect it to work. That’s assuming there are folks who’d even want to move there in the first place. I suppose a showdown with NK is baking in the oven too, as SK slowly weakens with every passing year.

SK and Japan are in big trouble. Wrinklies best move.

#197 Wrk.dover on 01.05.21 at 11:21 am

$6000/yr=$16.43/day or $30/work day. After tax.

If you have affordable accommodations and transportation and maybe room in grunt wage budget.

Probably not.

So rather than be defeated, go for a percentage to begin, play catch up later, the system allows that too.

When the house and car are debt free, $6000/yr. is totally doable, even at official poverty level.

From my own experience.

#198 Sail Away on 01.05.21 at 11:27 am

#194 Sara on 01.05.21 at 10:25 am
#177 Sail Away on 01.05.21 at 7:45 am

I called but missed you. Your assistant said if I do reach you to mention that your special order of extra small condoms arrived.

————–

SA is projecting again. No wonder he and his wife have (in his words) “hideously disappointing marital relations”.

————–

Hi Sara! Very few have your deftness at hammer surgery.

#199 IHCTD9 on 01.05.21 at 11:48 am

#195 Sara on 01.05.21 at 10:58 am

Attack only! Why should they have all the fun at your expense?
_____

You sound like famous French General Ferdinand Foch:

“My centre is driven in, my right flank is retreating, the situation looks excellent, I attack!”

#200 Love_The_Cottage on 01.05.21 at 11:53 am

#184 SunShowers on 01.05.21 at 9:23 am
“Facts are facts. The TFSA is egalitarian and democratic, open to all. – Garth”
____________
“In its majestic equality, the law forbids rich and poor alike from sleeping under bridges, begging in the streets and stealing loaves of bread.” -Anatole France
__________
Best reply of the year so far.

#201 Crazed and a little confused on 01.05.21 at 12:02 pm

Poor schmuck
I read the comments addressed to you from the posters claiming you should try harder or $6000 tfsa contribution is not rich, kids are expensive.
I have a slightly disabled left hand and leg. I have had a tough life. I dont qualify for disablity benefits because i am able body. Wash dishes and sweep the floor. But i cant really type and have poor tactile function

I managed thru hard work and a little luck to get a managerial job at a biomedical research facility to help buy science supplies and direct some funding to projects at times . I have a microb degree with minors in commerce.

I also suffer from a little bit of depression at times because of family challenges. My elderly parents dont speak english much. I only have 1 parent still alive now.
I have a diverse portfolio of unregistered investment and tfsa and rrsp. I dont own property
I am sadden a bit because its hard to get onto the property ladder because govt keeps sponsoring bailouts ..i dont need to explain what they are.

But on the other hand my stocks did very well. I sold my tech in early December.
What i saying we all have our difficulties. Get educated in money and start small. A MARATHON starts with one step. I feel for you. I do because no one seems to understand your challenges. You kinda feel alone.

Good luck to u

#202 Damifino on 01.05.21 at 12:05 pm

#200 Love_The_Cottage

Best reply of the year so far.
————————

Sets a low bar.

#203 The greatest fool on 01.05.21 at 12:18 pm

This article makes me want to get a bicep tat of Garth’s face. ..or maybe on the shoulder?

#204 Crazed and a little confused on 01.05.21 at 12:20 pm

Real estate was saved by 800 billion dollar stimulus plan by the US in 2009 and subsequent 1 trillion bailout every year to keep thd economy going. Thats why US deficit was 20 trilion when obama left. You put 1 trillion dollar in any industry it will do well.

If you bought apple during 2010 and sold around December you would have made 7x your money easy
McDonald’s 4x investment
Pfizer 3x investment
Rbc 3x ….
So for those who sat on the side lines hoping..it was a mistake. But u can’t give up. There are people who lost it all in real estate and stocks. Its reality

#205 SoggyShorts on 01.05.21 at 12:24 pm

#197 Wrk.dover on 01.05.21 at 11:21 am
$6000/yr=$16.43/day or $30/work day. After tax.

If you have affordable accommodations and transportation and maybe room in grunt wage budget.
Probably not.
So rather than be defeated, go for a percentage to begin, play catch up later, the system allows that too.
When the house and car are debt free, $6000/yr. is totally doable, even at official poverty level.
From my own experience.

********************
Decent advice, but what ever happend to overtime?
The minimum wage is $15, the minimum overtime wage is $22.50
So working 9s instead of 8s almost gets you there. Or putting in Saturdays.
I know working long days or 6 days a week sucks, but minimum wage is a temporary starter wage at a job, not a career, so it should take less and less time to get $30 a day in savings.

#206 Faron on 01.05.21 at 12:27 pm

#177 Sail Away on 01.05.21 at 7:45 am

#110 Faron on 01.04.21 at 7:25 pm

I called but missed you. Your assistant said if I do reach you to mention that your special order of extra small condoms arrived.

Sorry I missed you. I must have been out shovelling stalls. Gotta top up the inventory, ya know!

#207 Cheese on 01.05.21 at 12:29 pm

Over the past 2 days, I missed out on $6k worth of growth on an investment (Lithium battery index) because I placed a limit order a little too low. I make 18$/h. Some of us out there are trying, but it seems I am doomed to die. I hope everyone else has better luck.

#208 SoggyShorts on 01.05.21 at 12:32 pm

#179 SunShowers on 01.05.21 at 8:06 am
#160 SoggyShorts
Well, why doesn’t the worker themselves have a nail gun and cut out the middleman (you)? Is it because you’re smarter or more hard working than the worker? No, it’s probably because you have enough money to buy the nail gun and the worker does not.
*********************
In fact, the reason I can buy the nail gun and they can’t is precisely because I’m a smarter and harder worker than they are. That and I’ve been doing it longer.

I inherited no wealth, I didn’t get a family loan of a million dollars, I myself worked as a wood nailer taking every shift and overtime hour offered for years and made sacrifices in order to save up and go out on my own.
That painful path is open to any who wish to try it.
————————————————-
#179 SunShowers on 01.05.21 at 8:06 am
I already addressed those concerns[lack of incentive to open a business rather than be an employee] in the very post you’re replying to.
*****************
You absolutely did not. Unless you mean where you stated that my incentive should be that if I have a role in production I can be fairly compensated for that?

Fine then, since my role in the production is:

♦Spending years in the industry learning and sometimes even inventing the best nailing techniques (Starting at minimum wage and only getting raises that I earned)
♦Draining our savings down to nothing and then taking on the risk of borrowing to start the company
♦Going hungry when times are tough
♦Never really being able to “leave work at work”
♦Continually seeking out new clients
♦Finding the best wood&nail suppliers
♦Keeping up to date with the latest nailing trends
♦Finding and training the nailers
♦Saving every penny to afford the downpayment on that nail gun
♦Making the monthly payments on the nailgun
♦Repairing, Replacing & Powering that nailgun

For that, my fair compensation is: every single penny left over after paying all the labor at $20 and bills.

——————————————-
Your commie tinted glasses must blind you to how hard it is to start and run most companies.
You think that I should give the laborer a 100% raise because the new technology provided increases his output by 100%.
Your justification that I’m not actually doing any more work only makes sense if the new technology is free and I didn’t put in previous labor in order to get it. My blood sweat and tears came before.
It also conveniently ignores that the laborer isn’t doing any more work…

Your thinking is the stereotypical entitlement/envy combo that leads to failure. You think because someone has something you should have it too, completely ignoring or belittling what they had to do to get it and how hard they work to keep it.

#209 Stoph on 01.05.21 at 12:38 pm

Thanks for this tax shelter Garth. It’s helped me and my family tremendously.

#210 IHCTD9 on 01.05.21 at 12:40 pm

#193 Mattl on 01.05.21 at 10:21 am

…But, those jobs are looked down on, even when though they can generate 60-80K a year and provide a path to owning your own business. Do you have any friends that work in the trades? I bet you don’t, and I suspect you would think little of a guy that goes out, works 8-6 every day and makes 2x what you do.

___

Yep, some kind of cultural shift going on. We have to make our own conventional machinists and welder/fitters out of general labourers these days. I mean, come on – these are the great jobs all the Boomers walked right into and made a bazillion dollars doing that the mils all wish were still around these days…

They can make 60K+ at 22 years old in a LCOL area where a decent house can be had for 3-400K, or if they don’t mid commuting an hour round trip – for 200K, and 100-150K for a fixer upper. Add a 50-60K govy employed spouse and they have it made in the shade.

FWIW, my Dad has a one Man seasonal retirement biz doing property maintenance, which is 90% mowing lawn, and charges 30.00/hr, 50.00 minimum bill.

#211 Faron on 01.05.21 at 12:42 pm

#148 IHCTD9 on 01.04.21 at 10:31 pm

#38 Faron on 01.04.21 at 4:47 pm
#168 crowdedelevatorfartz on 01.04.21 at 3:04 pm

@#165 IHCTD9

So, if I buried the ashes from the stove – would the circle be carbon negative?

That’s a good question. I don’t know with certainty, but this is what I think: If those ashes and their various minerals and whatever other compounds they contain helped fertilize the soil and promoted more rapid vegetation growth and if that veg’s carbon was sequestered for the length of time useful to humans/climate change — several hundred years — then yes. Otherwise, I don’t think there’s much carbon left in ash and any shallow burial isn’t going to keep it out of the carbon cycle for long.

#212 Faron on 01.05.21 at 12:52 pm

#198 Sail Away on 01.05.21 at 11:27 am
#194 Sara on 01.05.21 at 10:25 am
#177 Sail Away on 01.05.21 at 7:45 am

SA is projecting again. No wonder he and his wife have (in his words) “hideously disappointing marital relations”.

————–

Hi Sara! Very few have your deftness at hammer surgery.

Why would anyone perform surgery on a hammer? They have four parts max.

Eats shoots and leaves joke aside, I’m going to guess Sara spends her time more profitably than coming up with zingers. Also notable is how the level of vitriol here never fails to spike like the VIX on bad COVID news when you are around SA. Song of harmony my arse.

Welp, I’ve reached my daily quota already… cheerio.

#213 IHCTD9 on 01.05.21 at 1:00 pm

#184 SunShowers on 01.05.21 at 9:23 am
“Facts are facts. The TFSA is egalitarian and democratic, open to all. – Garth”

Ah yes, how beautiful and egalitarian a system that allows the rich and the poor alike to shelter an extra $6000 per year from taxation. Reminds me of a famous quote:

“In its majestic equality, the law forbids rich and poor alike from sleeping under bridges, begging in the streets and stealing loaves of bread.” -Anatole France
___

You spend too much time speaking from the context that the poor can actually be eliminated from society. If only the government would “X”, or the people would “X”. Then there would be no more poor people.

I hate to break it to you, but the poor have been with us since the dawn of time. You won’t be changing a thing. Thinking otherwise is a quixotic chasing after the wind.

If you’d like to help, you may do so on your own initiative, but trying to “effect change” beyond your own fingertips is just wasting precious time.

#214 SunShowers on 01.05.21 at 1:11 pm

#205 SoggyShorts on 01.05.21 at 12:24 pm
“I know working long days or 6 days a week sucks, but minimum wage is a temporary starter wage at a job, not a career”

There is no such thing as an “entry level job” or “starter wage”.

Are you familiar with the shape of a pyramid?
Is there room for all the space (people) at the base of the pyramid at the top? No, there is not.

These “starter” jobs are necessary. SOMEBODY has to do them, and there will never be a world where EVERYBODY can be a well paid business owner or CEO (at least not under capitalism). Capitalists and their apologists don’t want to be the ones working these jobs (which is fine), but then they twist themselves into logical pretzels trying to explain why they think the people who DO fill these necessary jobs don’t deserve to be paid enough money to live.

What happens to the top of the pyramid if the base crumbles?

“Your commie tinted glasses must blind you to how hard it is to start and run most companies.”

Well, let’s consider the worst case scenario for any business owner. They go bankrupt, have sell their tools to pay any outstanding debt they may have, and now have to…sell their time and labor in order to survive.

Huh. Seems like the “worst case scenario” for a capitalist is identical to “everyday life” for their employees.

Here’s an idea. We’ll meet up in the downtown core (or other bad part of town) in the city of your choice and interview homeless people. For every down on his luck former capitalist who put it all on the line running his business and lost everything, you get a point. For every worker laid off due to automation, outsourcing, cost-cutting, etc, I get a point. First to 10 wins, loser buys lunch. You game?

#215 Sail Away on 01.05.21 at 1:12 pm

#212 Faron on 01.05.21 at 12:52 pm

…notable is how the level of vitriol here never fails to spike like the VIX on bad COVID news when you are around SA. Song of harmony my arse.

————

Oh… you never noticed the vitriol doesn’t come from me?

Remembering that would be useful.

#216 Bill on 01.05.21 at 1:15 pm

Putting things in perspective a great 3 min video.
No war, no deppresion just a bad bug and not the worst by far.
Just to many opinions on social media and self-serving governments (greed)
Smile!
https://www.youtube.com/embed/P-IzlvgRxA8

#217 crowdedelevatorfartz on 01.05.21 at 1:16 pm

@#195 Sara
” The lost boys …”
++++

Are you feeling ok?
You usually spell it “bois”…..

#218 Handsome Ned on 01.05.21 at 1:54 pm

#23 The greatest fool

This article makes me want to get a bicep tat of Garths face.

Good thing there is lots of room on my “pythons”.

#219 The Awakened One on 01.05.21 at 2:28 pm

Happy New Year to you and yours Garth!

Always appreciate your tireless effort in making Canucks richer and more savvy financially (even if they don’t want to..).
Well, there are a few of us do exactly this: maxing TFSA, and investing in ETFs to retire early! So there you go.

#220 RyYYZ on 01.05.21 at 2:36 pm

#119 Long-Time Lurker on 01.04.21 at 7:41 pm
Atlantis Rising (#25)
Jeanne Manning.

“We’ve been testing this battery for a month or so now. It’s supposed to have only 900 spins per nine volts, and that’s a nine-volt battery, so if it were to run out then it would have run out a long time ago!”
===================================

Is it not bad enough that this blog is full of COVID conspiracy theorists (among others), do we also need perpetual motion nutters? Stick to lurking.

#221 RyYYZ on 01.05.21 at 2:38 pm

Re: my last post – or am I missing something? Is this actually a parody?

#222 Sara on 01.05.21 at 4:15 pm

#217 crowdedelevatorfartz on 01.05.21 at 1:16 pm
@#195 Sara
” The lost boys …”
++++

Are you feeling ok?
You usually spell it “bois”…..
—————

Huh? You lost me boy.

#223 Rudy on 01.06.21 at 2:41 am

This stuff should be taught in grade school. All the crap I learned in high school never was used in real life. Bookmarking this one.

#224 Rakiki on 01.06.21 at 8:05 am

RESPs, TFSAs, RRSPs, all maxed out for 2021. A healthy mix of index funds and some income generating investments like XDIV. The TFSA is egalitarian in theory, but allows wealthier Canadians to shuffle money around to zero-income spouses and children. I see it as a minor problem, since the money has been taxed at source and will be consumption-taxed when withdrawn. That said, I would not mind if a person had access to the TFSA room only if their net income was over $6000 the previous year.

#225 P.Ooched on 01.06.21 at 12:10 pm

FYI – TD Bank has TFSA promo until 2021-01-31

Opening a new TFSA or RRSP account with a minimum of $2500 gets you a $100 bonus at the green bank.

ps – I don’t work for them and didn’t read the fine print, just passing along the info :)