It’s coming

It’s been a week now since the feminist, gender-neutral, anti-racist, pro-family, indigenous-friendly, BIPOC-supportive, child-centric, inclusionary and diverse budget for all Canadian peoplekind. As you know, it spent up a storm. Deficits to the horizon. Everybody gets a pony.

Missing? New taxes to pay for this stuff.

They come later. In fact, after the election which will follow the heralding of herd immunity. October 18 seems reasonable. And if the Libs win, we pay.

As reported here, accountants were telling clients two measures were slam dunks. First, a new tax bracket for upper income-earners (effective around $400k per year, boosting the top combined marginal level closer to 60%). Second, a higher capital gains inclusion rate, meaning 60% or 70% of a gain would be included in taxable income, rather than the existing half.

Neither materialized. We dodged the bullets. But don’t get too smug, since the odds are large a re-elected Trudeau-Chrystia tag team will do exactly this. Thus (if it happens) Canada would have a new level of personal income Hoovering in place for 2022, plus enhanced capital gains taxation effective from the night of the budget.

If you (and your accountant or advisor) think this is a possibility, explore the options. Some professionals can incorporate, for example, taking only enough salary to max RSP contributions (staying below the super-tax threshold) while earning less-taxed dividends and building retained earnings. Also think about crystallizing capital gains, if you’ve been carrying them around for a while. While nobody likes selling a growth asset and triggering tax, better to do it when the hit is less.

There’s more on the table. The GST could increase – but sales taxes whack lower-earners who spend a greater proportion of their income on necessities. So it’s more likely the Libs will continue their attack on the ‘wealthy’, like those with TFSAs. Recall there was no public outcry in 2015 (other than moaning and wailing on this pathetic blog) when T2 slashed TFSA contributions in half from Harper’s ten grand a year. “There aren’t a lot of people with $10,000 lying around at the end of the year,” he said, as if that was a good thing.

Well, now the tax-free contribution room has grown to $75,500 Those who have invested correctly have a hundred grand in there. Many have considerably more. In a decade these folks will carry roughly a quarter million in TFSAs, which can generate $1,500 or so a month in retirement, completely tax-free and uncounted as income for the purposes of CPP taxation or OAS clawback. In two decades, double that.

Does this suggest the Libs may tighten again? Cut the current $6,000 annual amount of new room back to $3,000 (the average contribution is less than that)? Cap the amount that can be accumulated inside a plan?

But what about RRSPs? The system is heavily weighted to favour those who earn more, since contribution room is based on income (the TFSA is far more democratic) Therefore ‘rich’ folks can shovel over $27,800 a year into their plans, enjoy tax-free growth, and deduct the whole boodle from taxable income. But in reality, the average contribution is just $6,000 a year and 80% of all the RRSP room Canadians have accumulated by working remains, sadly, unused.

Meanwhile the cost to Ottawa of allowing RRSP is pegged at $17.2 billion a year (in contract, TFSAs cost the feds $1.79 billion annually). So is the fact that tax shelters are costly and shunned by average people – who are busy feeding mortgages – justification for more Liberal diddling in an era of terrifying structural deficits?

Finally, what about houses? The principal residence exemption (PRE) from capital gains costs Ottawa just over $7 billion a year in lost revenue, and there’s been talk that this outrageous loophole for unearned wealth should be nipped.

But we all know that’s not gonna happen. The budget’s almost-complete silence on the current real estate mania spoke volumes. There’s zero appetite in Ottawa to touch the opiate of the masses.

Conclusions?

The current fiscal situation ain’t sustainable. Not even close. Either spending has to drop (which T2 will not do) or revenues must rise (which Chrystia will cause). So, prepare. Start by maximizing tax shelters that exist currently – like stuffing your TFSA and investing it for maximum tax-free growth. Also consider borrowing money to fill up all the unused RRSP room you’ve accumulated. The loan interest isn’t deductible, but the big tax refund can be used to pay it down. You can also transfer existing assets into a retirement plan (or TFSA), but this may be a taxable event. However, if the cap gain inclusion rate is destined to rise later, why not trigger such a gain now?

Naturally, take advantage of pension income-splitting with your squeeze, and use a spousal RRSP or a cheapo spousal loan to reduce the overall tax profile of your glorious union. Dump money into Junior’s RESP so you can collect the 20% government handout for doing so. If a child is disabled, the RDSP is a big potential source of subsidized gains. Apply for your CPP early, unless you already know your death date, and fully fund TFSAs for your spouse or other adult family members – so long as they promise to give it back.

Mostly, don’t be naïve or relieved. The budget played us.

About the picture: “Here is Morgan (7 year old Golden Collie X rescue that the rescue got from Northern Quebec Indian reserve as part of a newly born litter) with new puppy sister 3 years ago Shelby,” writes blog dog Jennifer. “Shelby was a Kijiji pup and I use this pic as a cautionary tale.  Shelby was a gorgeous pup and was supposed to be Retriever/Collie x.  As she grew up we knew that to be false as she’s clearly a Hound  and was taken from Mum too soon (she’s neurotic!).  She’s still a lovely dog but in the Covid puppy craze she’s a good cautionary tale about buying puppies off the internet.”

149 comments ↓

#1 Howard on 04.26.21 at 2:02 pm

The battle over Line 5 is heating up. The Michigan Governor, a key Biden ally in a crucial state, appears to be unphased by Canadian grovelling. Grab some popcorn.

Frustrated Canada presses White House to keep Great Lakes oil pipeline open

https://www.reuters.com/article/us-canada-pipeline-michigan-idUSKBN2CD0EA

#2 What others said... on 04.26.21 at 2:04 pm

Aside from sports news and general bile, no topic is better served by the internet than where to eat. It’s easier to find an abundance of online information on the best chicken rice in such-and-such covered food court in Singapore than it is to figure how to adequately save for retirement.

#3 Guy in Calgary on 04.26.21 at 2:07 pm

With the deficit as is, it does not matter who is next in office. Taxes will increase.

#4 crowdedelevatorfartz on 04.26.21 at 2:12 pm

@#3 Calgary Guy
“With the deficit as is, it does not matter who is next in office. Taxes will increase.”

++++

Total agreement.
Libs will hammer us after the election with user fees and tax increases.
OR
The Cons will do it and blame it on the Libs spendthrift ways.

Either way.
Were taxed to dee max

#5 Chameleon on 04.26.21 at 2:13 pm

Garth is doubling down!

Two days in a row of double the dogs in the photos.

And in both cases the dogs are doing nothing of any notable interest or use. Not bringing back a duck from the marsh. Not fetching a stick. Not scooping their poop.

Since Gordon Gekko made a photo appearance recently, can someone remind us what animal G.G. designates to stocks not worthy of his attention?

#6 Love_The_Cottage on 04.26.21 at 2:13 pm

Also consider borrowing money to fill up all the unused RRSP room you’ve accumulated.
_________
If tax rates might be going up then I don’t understand this. Why wouldn’t you wait until tax rates are higher to get a bigger break?

Do you earn over $400,000? – Garth

#7 TurnerNation on 04.26.21 at 2:15 pm

Look at the Commodity ETFs. CORN.US – WEAT.US – JO.US – big moves. Food inflation coming?

– The virtual Berlin Walls in Kanada. Everything old is new again. Families chopped in half overnight as the wall went up. We are under occupation.

.Residents and truckers protesting N.B. – N.S. border restrictions (saltwire.com)
““We’ve reached a point where people have had enough,” said Tommy Everett, who also organized a protest at the border last weekend amid blustery, wet conditions. “Everyone is hurting from this on both sides of the border. We have families who have been divided because of these restrictions and we have businesses that are suffering. It’s a situation where we have to do something to show our anger, and this is it. They need to reopen this border.””

— How to Force a Supply Chain Shortage? And I have been hinting at this here. Yeah I read that ‘leaked document’
Also the Suez Canal Evergreen ship stunt seems like the Toilet Paper stunt…a test run.

https://themostbeautifulworld.com/blog/supply-chain
“First, require for almost everyone to self-isolate for 21 days as they enter New Brunswick.
Then, have a massive strike at Canada’s busiest port (Montreal).
Follow all of that by a seafarers strike Coast to Coast…
… and shutdown every factories and workplace the moment there’s been a case at the workplace (Ontario).
…and you got a supply chain crisis! ”

—Great revenue stream for PFE.US. You didn’t think this all would be ending any time soon, did you?

https://www.cbsnews.com/news/moderna-covid-vaccine-booster-shots
“”There will be likely a need for a third dose, somewhere between six and 12 months. And then from there, there will be an annual revaccination. But all of that needs to be confirmed,” Pfizer CEO Albert Bourla said Thursday at a virtual event hosted by CVS Health”

#8 crowdedelevatorfartz on 04.26.21 at 2:15 pm

Its not just the Libs spending us into perdition….

https://www.burnabynow.com/opinion/opinion-covid-19-has-given-bc-ndp-a-licence-to-spend-big-3665732

#9 Leftover on 04.26.21 at 2:18 pm

If RSP’s cost the government $17 billion a year and mainly benefit the “rich”, then there’s a good chance they’re an endangered species.

Capital gains inclusion rates? Well sure, pump them up just when we need private investment to come to the rescue to restore businesses that went under during the pandemic. Pure genius.

The PR exemption was untouchable in a pre-election budget, maybe not in the afterglow. Expect a lot of legitimately angry Millennials to shame his wokeness during the election and beyond. Cancel culture does have its benefits.

#10 Humbled ◇ Broke on 04.26.21 at 2:20 pm

Does anyone think that any of this will end well.

We keep using yesterday’s solutions for tomorrow’s problems. Canada has spent a world war equivalent of money on an invisible bug with no wins in sight. Every three months a new Maginot Line is declared and conquest is just over the horizon. Were all in this together, especially if your rich, and you will need to do your part … plus. In this weird, slimy l bug war, only the high earner is conscripted to the front lines to fight the covid huns. Your wallet is conscripted to fight the final great viral war no quarter given. The goal posts keep getting pushed back while every other day the central planners chsnge the rules without clear explanation.

I suspect by fall of this year a national loss of faith in all three levels of government will be evident. The reboot of the economy will be febrile and wanning as few will trust the future with the current lot of political psychopaths driving the bus.

#11 Joseph R. on 04.26.21 at 2:28 pm

#1 Howard on 04.26.21 at 2:02 pm
The battle over Line 5 is heating up. The Michigan Governor, a key Biden ally in a crucial state, appears to be unphased by Canadian grovelling. Grab some popcorn.

Frustrated Canada presses White House to keep Great Lakes oil pipeline open

https://www.reuters.com/article/us-canada-pipeline-michigan-idUSKBN2CD0EA

————————————————————–

As far as the US stand on trade with Canada: Meet new boss, same as old boss

#12 theoryAndPractice on 04.26.21 at 2:30 pm

#10 Humbled ◇ Broke on 04.26.21 at 2:20 pm
We keep using yesterday’s solutions for tomorrow’s problems. Canada has spent a world war equivalent of money on an invisible bug with no wins in sight.

Was it just Canada ? Follow the money, where it flows and why ?

#13 Mad World on 04.26.21 at 2:37 pm

#7 TurnerNation

Residents and truckers protesting N.B. – N.S. border restrictions

——-

Wait till this story (below) gets more exposure. EVERYONE will want the N.B. border SHUT AIR TIGHT.

Whatever this N.B. brain disease is…at least with Covid you have statistically 98%+ chance to live.

>>
It typically starts with uncharacteristic irritability, anxiety and depression. Then comes pain, along with insomnia, and a constellation of other devastating symptoms, including terrifying hallucinations, a loss of balance and co-ordination, and in a few cases, Capgras delusion – the irrational belief that family members or other familiar people have been replaced by imposters.

By now, Dr. Alier Marrero knows what a mysterious brain illness that has sickened dozens of New Brunswickers looks like.

But what he can’t tell you is how to best help these patients – or how to prevent others from suffering the same fate. Because before Dr. Marrero can tackle these questions, he must find the answer to another, more basic one: What has made all these people in his province ill in the first place?

https://www.theglobeandmail.com/canada/article-in-new-brunswick-experts-try-to-figure-out-why-dozens-have-been/

#14 ogdoad on 04.26.21 at 2:42 pm

First paragraph is the best!! Wuss right out on the budget. Neutral across the board ’cause everyone’s too sensitive…my interpretation, lol!!

Taxes, taxes, taxes. Hey, doesn’t that mean that Canada should become one of the happiest? Or, wait…does trust in Government play a part? Probably…too bad.

Og

#15 crowdedelevatorfartz on 04.26.21 at 2:47 pm

@#13 Mad World
“Dr. Marrero can tackle these questions, he must find the answer to another, more basic one: What has made all these people in his province ill in the first place?”

++++

Time to stop picking mushrooms and putting them in stew?

#16 Faron on 04.26.21 at 2:48 pm

#11 Joseph R. on 04.26.21 at 2:28 pm

#1 Howard on 04.26.21 at 2:02 pm

I speculate that the US will dig in until Enbridge w/ CDN backing posts a massive enviro bond in case another Deep Horizon happens. This is a good thing. If Enbridge can barf $6B+ in divvies each year, it should be able to post enough cash to prevent a disaster.

#17 Dave on 04.26.21 at 2:50 pm

Can you believe this made it into the developer supported Vancouver Sun?

https://www.cbc.ca/news/business/apple-privacy-explainer-1.6002219

#18 Oakville Rocks! on 04.26.21 at 2:50 pm

@#2 What Others Said – WTF? Your name does not cut it, your entire comment is lifted from Cathal Kelly’s Globe & Mail column from the other day.
https://www.theglobeandmail.com/arts/article-anthony-bourdains-posthumous-new-book-world-travel-an-irreverent-guide/
If you like what he wrote – show the man some respect and provide a link or some sort of attribution.

Otherwise, lovely dogs today and those 17 year old Schnauzers from yesterday – wow. I hope my Schnoodle got some of those longevity genes.

Great advice as usual Garth.

#19 Eric on 04.26.21 at 2:51 pm

Hey Garth,

Quick question, with all these new “tax grab” what are your thoughts in regards to an IPP.
I believe that the feds will increase the taxes on prof/business owners using # companies to save for retirement, so maybe going forward using the IPP to tax shelter more money would be a viable option.
I do not recall any blogs in regards to IPP.
Thanks, continue the great work!
Eric

#20 Dave on 04.26.21 at 2:54 pm

Too bad O’Toole is running the show for the Cons. They found someone even dimmer than Trudeau. The Liberals should thank their lucky stars that there is no effective opposition.

#21 macduff on 04.26.21 at 2:58 pm

Garth, my financial advisor is really pushing for me to take CPP at 70, but I like your logic and think that 60 might make more sense (for me it would pay about $720 at 60 yoa). Can you provide talking points again about this?

(a) Get a new advisor. – Garth

#22 Sail Away on 04.26.21 at 3:01 pm

Oh my. Canada consistently doubling the US per capita in new Covid cases now… and accelerating the discrepancy.

#23 Trojan House on 04.26.21 at 3:02 pm

Since the majority of people don’t understand what a TFSA is or does, but do think it is something for “the rich,” it is the easiest thing for T2 and the Impaler to impale while in the process making them look like Robin Hood and Little John.

Raising the top tax bracket to 60% won’t even make a drop in the bucket in revenue because, as you’ve pointed out many times in the past Garth, there are not enough “rich” people out there to make the extra revenue worthwhile let alone put a dent in the deficit or debt.

The spending is now beyond a point where it will ever be paid off no matter how much additional tax revenue is confiscated. Nor will the budget ever be balanced again. Therefore, what is the point of all this?

#24 Josh in Calgary on 04.26.21 at 3:04 pm

Garth,
I’d double check the spousal RRSP thing. We’ve done this as per your suggestion and saved some taxes. Up until this year that is. We’ve been pulling it out to take advantage of my spouse staying at home with the kids. This year the amount we “lost” in other tax breaks and government child payments negated any advantage. It’s still a good thing to contribute to a spousal plan but pulling it out when you have a stay at home parent might not make sense.

#25 T World on 04.26.21 at 3:05 pm

Maybe they should look at changes to DB pension plans(largely in gov’t only)—they are way more out of line than RRSP’s or TFSA’s.

#26 ogdoad on 04.26.21 at 3:10 pm

#21 macduff

(a) Get a new advisor. – Garth

-Og-

I almost fell off my recumbent…

Og

#27 Big Mac on 04.26.21 at 3:15 pm

Wow, what a list, because this is 2021.

Who is the biggest genius? Garth or Justin?

«feminist, gender-neutral, anti-racist, pro-family, indigenous-friendly, BIPOC-supportive, child-centric, inclusionary and diverse budget for all Canadian peoplekind.»

Btw, indigenous is included in BIPOC. Had to google that!

#28 Sail Away on 04.26.21 at 3:17 pm

FYI, regarding yesterday’s overweighting CDN vs. US, here is a compilation of market returns, disregarding dividends:

Canada
6 month: 22%
1 year: 30%
5 year: 6.5%
10 year: 3.4%

US
6 month: 34%
1 year: 50%
5 year: 15.6%
10 year: 12%

US has clearly and decisively beaten Canada’s markets for at least the last 10 years, and considering exchange rate, by even a larger amount than shown above.

And now with the US having beaten Covid and cranking the economy, overweighting (or even holding) maple preferentially is just illogical.

#29 Ponzius Pilatus on 04.26.21 at 3:23 pm

#22 Sail Away on 04.26.21 at 3:01 pm
Oh my. Canada consistently doubling the US per capita in new Covid cases now… and accelerating the discrepancy.
———
Give it a month or two, and we’ll see the reverse.
Two things will happen:
Canada will outpace the US in vaccinations, due to higher acceptance of Vaccines here.
And
Summer is coming, Canadians will flock outside where the chance of getting the virus are much smaller. (20x less then indoors)
Having said that.
Take a lesson from Inda and Germany, which thought they had the virus beaten, only to have it come back with a vengeance.
Never pay the piper before the fat lady sings.

#30 Mad World on 04.26.21 at 3:30 pm

#15 crowdedelevatorfartz on 04.26.21 at 2:47 pm
@#13 Mad World
“Dr. Marrero can tackle these questions, he must find the answer to another, more basic one: What has made all these people in his province ill in the first place?”

++++

Time to stop picking mushrooms and putting them in stew?

++++

The working theory is that it is some version of human mad-cow disease. They want look at algal toxins, but mushrooms are surely a valid theory and somewhere on the list. Other is also venison perhaps? Covid is making it hard to do the investigation.

What ever it is, it sound horrific!

DESCRIPTION OF SYMPTOMS:
As more patients have been identified, the list of unusual symptoms has grown, Dr. Marrero said. Many experience muscle aches, pain in their limbs, and spasms – symptoms that do not appear to come from the limbs themselves, but from the brain structures that control pain. The majority eventually develop severe insomnia – and some do not sleep for days, even with sleep medication, he said. A few sleep too much, and it is not easy to wake them.

Patients have problems with memory and aphasia, or trouble finding words to express themselves. Some develop stuttering and more than one patient has developed echolalia, where they repeatedly echo what someone else says and are unable to stop. They sometimes become disoriented in familiar places.

All have visual disturbances – most commonly blurry vision – but also problems with depth perception, which causes dizziness. A majority have visual hallucinations, which can be “terrifying or frightening,” he said. Other types of hallucinations have emerged as well – phantom noises or voices, and tactile hallucinations, such as the sensation of crawling insects.

Involuntary muscle jerks persist even in the late stages of the disease when patients are unconscious. Minor stimuli, such as lights or sound, can provoke something similar to a whole-body startle response.

Patients also develop tremors, have trouble walking without falling, and they lose weight, mainly owing to muscle atrophy.

Many have dry hair and skin, leading them scratch so much that they sometimes cause wounds and develop infection. Some also experience hyper-salivation, or drooling.

In later stages of illness, patients have akinetic mutism, where they no longer have the ability to speak or move.

“It’s very sad to see for the families, and obviously for us, as physicians,” Dr. Marrero said.

THEORIES:
“Dr. Spencer, who is not involved with the investigation, suggested a first step would be to look for algal toxins in mussels and other bivalves. “That’s where I would start,” he said.

Among the list of potential toxins the research team is investigating is one called beta-methylamino-L-alanine (BMAA), which some believe may be behind a mysterious neurological illness identified in Guam at the end of the Second World War.

#31 Faron on 04.26.21 at 3:31 pm

#22 Sail Away on 04.26.21 at 3:01 pm

Oh my. Canada consistently doubling the US per capita in new Covid cases now… and accelerating the discrepancy.

You obviously didn’t sell your bias with your boat. Take the 7 day running means to smooth out the noisy data and you get:

Canadian cases outpacing the US by a factor of… wait for it… lil longer… keep waiting…

1.15 — maybe ceiling that up to 2 is just an engineer thing?

You also keep forgetting to mention death rates as an indication of severity although by far not the only metric of impact, nor should it be.

Canada continues to kill people at 0.58 of the rate the US is. Yes, that’s still almost half the rate of outright household tragedy happening north of the border.

Pretty hard to take you as any of helpful, objective or serious when you can’t get basics like this correct and, instead, spread FUD.

#32 Karlos on 04.26.21 at 3:32 pm

These federal Liberal clowns are ruining a fine first world country with tremendous natural resources for a utopian vision that like all others will end up in failure.

#33 Onze on 04.26.21 at 3:33 pm

“Recall there was no public outcry in 2015 (other than moaning and wailing on this pathetic blog) when T2 slashed TFSA contributions in half from Harper’s ten grand a year.”

Nobody likes an advantage to be recalled, but let’s not be disingenuous here.

Harper had just doubled the previous limit as a last gift before getting kicked out of office, so cutting the TFSA limit back to 5k was more of a return to the norm than a “slashing”.

Halving is slashing. It was a crass political move. – Garth

#34 vancouver help on 04.26.21 at 3:34 pm

Hi Garth,

I think your wrong on the government taxing house. I believe the second the libs get another 4 years they will change the wording on the speculator tax and bam the moment you sell they get a nice cut as they have 4 years for people to forget.

#35 Joseph R. on 04.26.21 at 3:35 pm

#16 Faron on 04.26.21 at 2:48 pm
#11 Joseph R. on 04.26.21 at 2:28 pm

#1 Howard on 04.26.21 at 2:02 pm

I speculate that the US will dig in until Enbridge w/ CDN backing posts a massive enviro bond in case another Deep Horizon happens. This is a good thing. If Enbridge can barf $6B+ in divvies each year, it should be able to post enough cash to prevent a disaster.

———————————————————

Could be. I’m surprised a Governor as the authority to shutdown an international pipeline; pretty sure it’s outside her jurisdiction. But then again, I have lots to learn.

I’m assume the Biden administration has a working plan going on, despite their silence.

#36 Post on 04.26.21 at 3:36 pm

Perfect time to sell.

https://wolfstreet.com/2021/04/25/the-wolf-street-report-perfect-time-to-sell-a-home-to-fomo-addled-buyers/

#37 What Others Said on 04.26.21 at 3:37 pm

#18 Oakville Rocks!

First, relax. It says someone else said it, I didn’t claim to.

It’s for this audience because we are here and the main theme of this place is planning for retirement.

Second, relax. Cathal isn’t that special or important. You should have seen him with hair in these neck of the west Toronto woods. You wouldn’t have such a high opinion of his opinions.

#38 Stoph on 04.26.21 at 3:42 pm

#24 Josh in Calgary on 04.26.21 at 3:04 pm
Garth,
I’d double check the spousal RRSP thing. We’ve done this as per your suggestion and saved some taxes. Up until this year that is. We’ve been pulling it out to take advantage of my spouse staying at home with the kids. This year the amount we “lost” in other tax breaks and government child payments negated any advantage. It’s still a good thing to contribute to a spousal plan but pulling it out when you have a stay at home parent might not make sense.

—————————————————————-

I’m in a similar situation where both my wife and I currently have low incomes. My family could take out RRSP money, but we’d lose about 20% in lost benefits, plus we’d still pay tax on the withdrawn money.

#39 Ponzius Pilatus on 04.26.21 at 3:42 pm

#28 Sail Away on 04.26.21 at 3:17 pm
FYI, regarding yesterday’s overweighting CDN vs. US, here is a compilation of market returns, disregarding dividends:

Canada
6 month: 22%
1 year: 30%
5 year: 6.5%
10 year: 3.4%

US
6 month: 34%
1 year: 50%
5 year: 15.6%
10 year: 12%

US has clearly and decisively beaten Canada’s markets for at least the last 10 years, and considering exchange rate, by even a larger amount than shown above.
—————
I agree with your analysis.
America’s stock market will always outperform Canada’s.
Size, this time, matters.
Germany’s stock market will always outperform Austria’s.
(Germany’s economy is about 10x the size of Austria, so I think this is a good comparison)
Of course, there are other factors that affect stock prices, but size and volume are the most obvious one.
Sailo, for you the grass is much greener in the States.
So, what’s keeping you here?

#40 Heath Slee on 04.26.21 at 3:44 pm

Garth,
Like to hear your thoughts on life insurance pros and cons as well as tax benefits if any.

Only insure for a need, not an emotion. – Garth

#41 TW on 04.26.21 at 3:45 pm

#23

The point is the bigger it gets it cuts into future expenditures.Sure rates are low now but won’t always be.

Think of it like a credit card and you are carrying a balance—sure you can just make the minimum payment and everything is fine…for a while.It keeps growing and growing and eventually it will effect your credit score and eventually your ability to get credit—that is the point.

#42 Blacksheep on 04.26.21 at 3:48 pm

Observations from yesterday’s blog:

1) One very big difference is that Canada is a sovereign in control, while Spain, Ireland and Greece are currency users more like provinces in Canada, as they cannot print $ as needed which means they (pigs) could theoretically be forced to default on debt owed in Euro’s, while no one can force Canada to default on debts owed in CAN/$.

2) The graph provided covers from 1980 to 2020 and rises at a nice 30 degree incline over the 40 years shown. If you are buying a house for your family to live in (not flip) long term, buy what you can afford and the Bank of Canada’s ‘official’ 2% inflation mandate will do the rest.

3) National debts in the West (for sovereigns in control) will be made irrelevant. How this is going to happen I don’t know, but I do know what cannot be paid back, will not be paid back so something has to give and I think the term ‘Reset’ being used around the world may be what the system globally is hinting at…

Naive. Its not the debt you should worry about but the debt servicing costs. That is the crux of a coming crisis. – Garth

#43 TW on 04.26.21 at 3:48 pm

#23

Most people know what a TFSA is(they may not use it correctly) as 75% of Canadians have a TFSA account.

#44 Doug in London on 04.26.21 at 3:49 pm

And if the Libs win, we pay.
—————————————————————————————
Even if they lose, with all the debt that’s been racked up we still will pay. It’s hard to see how it all ends well.

#45 Doug t on 04.26.21 at 3:53 pm

dont worry – within the next 25 years this country will no longer exist anyway – The U.S. will “convince” Canada that it’s time to join them as a new state in their efforts to delay the inevitable destruction of their empire

#46 kommykim on 04.26.21 at 4:07 pm

RE: #27 Big Mac on 04.26.21 at 3:15 pm
Btw, indigenous is included in BIPOC. Had to google that!

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

They must be extra special in JT’s mind.

#47 kommykim on 04.26.21 at 4:11 pm

RE: #38 Ponzius Pilatus on 04.26.21 at 3:42 pm
#28 Sail Away on 04.26.21 at 3:17 pm
FYI, regarding yesterday’s overweighting CDN vs. US, here is a compilation of market returns, disregarding dividends:

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

If you don’t include dividends, the comparison is flawed. The US will still outperform, but just not as much.

#48 Sail Away on 04.26.21 at 4:13 pm

#33 Ponzius Pilatus on 04.26.21 at 3:42 pm

Sailo, for you the grass is much greener in the States.
So, what’s keeping you here?

——–

Let’s see…

Family, friends, ocean, mountain biking, hiking, hunting, perfect home, corporations, weather, mountains, no commute, direct access to Vancouver contracts, direct access to US markets, support network for all our earthly needs…

…and some other stuff. We’ll eventually have to decide where to finalize our tax home, but definitely plan to spend winters in the warm, summers here. It’s a tossup between Kona, Hawaii and Mission Bay, San Diego now, although we also like Texas and have lots of friends there.

#49 Lolo on 04.26.21 at 4:15 pm

So, all the more reason to have bought a house. Ugh.

And have no financial assets? Good luck retiring on that. – Garth

#50 crowdedelevatorfartz on 04.26.21 at 4:16 pm

@#30 Mad World
“The majority eventually develop severe insomnia – and some do not sleep for days, even with sleep medication,”

++++

There is a bicycle race across America (RAM) from L.A. to Maryland and guys would do it nonstop.

No sleep for days.

Race winners and participants reported unbelievable hallucinations due to lack of sleep after 5, 6 and 7 days on the road…

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

As for the causes…

Mad Cow disease spread into the deer and Moose population.
Lymes Disease on Steroids?

#51 Billy Buoy on 04.26.21 at 4:20 pm

I’m waiting for the charming idiot ( to 14 yr old girls) to go for the home run and say “For the financial security of the future of Canada” to introduce a wealth tax or huge clawback on government services and payments…

” Oh the net worth of your home, RRSP, TFSA is over a million? Guess you have no need for your OAS, CPP, and you can start paying a $75 deductible for any health care visit. Pay for your meds too. After all, you have the cash.”

They won’t give a flying F how you risked, sacrificed, etc to get to that million but JT being the all around great guy he is will look golden putting the nasty old Capitalists in their place to keep the masses fat , dumb and happy.

It’s coming.

#52 Faron on 04.26.21 at 4:26 pm

#35 Joseph R. on 04.26.21 at 3:35 pm

#16 Faron on 04.26.21 at 2:48 pm
#11 Joseph R. on 04.26.21 at 2:28 pm

#1 Howard on 04.26.21 at 2:02 pm

Could be. I’m surprised a Governor as the authority to shutdown an international pipeline; pretty sure it’s outside her jurisdiction. But then again, I have lots to learn.

I’m assume the Biden administration has a working plan going on, despite their silence.

—-

Speculating here: I’m not sure at what scale the federal government can claim eminent domain. The issue here is the stretch of pipe under the Straits of Mackinac IIRC. Given that those navigable waters are important for interstate commerce (Wisconsin and Illinois) I would guess that the feds have a large say. But, the pipe also crosses state land, giving the state control to stop it at any one of those land transits because the pipe itself doesn’t serve the US in any way. Also, any oil spill will make its way to the Michigan shoreline.

Anyhow, it’s more likely that this gets used as a bargaining chip — a small but very strong point of leverage for the US if it doesn’t like what Canada does with emissions. Pinkie lock.

#53 Liberal with Democracy on 04.26.21 at 4:28 pm

#43 Doug in London on 04.26.21 at 3:49 pm
And if the Libs win, we pay.
—————————————————————————————
Even if they lose, with all the debt that’s been racked up we still will pay. It’s hard to see how it all ends well.
—————————————————————————————

So…when it will be time to vote the choice will be:

A) Liberal – You broke it? You fix it!

B) Not-Liberal – You broke it? No consequences!

Looks like the Liberals outsmarted everyone once again!

#54 Habitt on 04.26.21 at 4:30 pm

Whoever wins we will pay. Very few would have 10 k at the end of the year. Or even 5. What’s the average wage in Canada? And to save that on after tax dollars? That’s what it is.

#55 Bob's Your Uncle on 04.26.21 at 4:45 pm

Garth, there are two big revenue generating taxations that you missed: a land tax, and a financial transaction tax. These two will help pay down the deficit quite quickly.

https://www.taxfairness.ca/en/news/strong-public-support-financial-transaction-taxes

https://michael-hudson.com/2013/07/china-avoid-the-wests-debt-overhead-a-land-tax-is-needed-to-hold-down-housing-prices/

Neither are coming. – Garth

#56 Blacksheep on 04.26.21 at 4:45 pm

“Naive. Its not the debt you should worry about but the debt servicing costs. That is the crux of a coming crisis. – Garth”
—————————-
All due respect Garth, but I am not ‘worried’ about the national debt or increasing tax rates, at all, just observations.

My little piss ass business only generates about 125K annually (so i’m flying way under the radar of tax targets being discussed. That and I’m 60 in 2 1/2 short years and will for the most part, be opting out of the system, leaving my heavy tax paying years behind me.

I truly believe rapid change is upon us as capitalism is not benefiting the middle class in the same manner as it did, before the globalization of western labor. Look at the US/CAN homelessness explosion in recent years.

RE values are controlled by restricting the creation of new housing stocks. I’m in the Fraser Valley and there is vacant, non productive land literally everywhere you drive. We have hi home prices because the system wants hi home prices, it’s certainly not due to a lack of space build.

These are all social issues and we both know with T2 at the helm four more years, the national debt is going to continue to explode. This level of debt cannot be repaid via more taxes on a citizenry that is already bleeding red.

Like I said: What cannot be repaid, will not be repaid, somethings gotta give….

#57 Linda on 04.26.21 at 4:48 pm

When to take CPP should always take into account the circumstances of the recipient. In my own case, taking it at 60 is the way to go. For someone whose only retirement pension income will be CPP waiting to 65 or even 70 might be the better choice, especially if that person is still healthy/working.

That having been said, the waiting to 70 is in my opinion something of a sucker’s bet. Yes, the eventual payout is enhanced but most will simply not live long enough to collect enough to make waiting worth the while. Yeah, yeah, we’re all going to live to age 90+. Given that less than 1% of the Canadian population makes it to age 90+ now, I think the odds of ‘all’ of us doing so just a tad over optimistic. Speaking of optimistic, this also presumes ‘the government’ doesn’t decide to change the rules between now & then. Given the scale of the deficits seems like a very risky bet.

#58 Mad World on 04.26.21 at 5:05 pm

#49 crowdedelevatorfartz on 04.26.21 at 4:16 pm

As for the causes…

Mad Cow disease spread into the deer and Moose population.
Lymes Disease on Steroids?

++++

Whatever it is, it reads like WALKING DEAD coming to reality near you – in New Brunswick. As I said, SEAL IT UP AIR TIGHT until this thing is sorted out.

This sounds so horrific I don’t even want to play pool on Brunswick pool tables anymore! What else is from New Brunswick? Lobster? McCain frozen food? Not touching either.

I’m so freaked out I think “Cottagers STAY THE HELL AWAY!” should rename himself to “New Brunswickers STAY THE HELL AWAY!” and resume his firm deterrent message. Perhaps add threat of releasing some old farts from jars?

#59 cto on 04.26.21 at 5:11 pm

you forgot one more Garth…
Leave Canabistan?

#60 45north on 04.26.21 at 5:16 pm

Howard The battle over Line 5 is heating up. The Michigan Governor, a key Biden ally in a crucial state, appears to be unphased by Canadian grovelling. Grab some popcorn.

Drill Baby Drill: I am in the oil & gas business past 40+ years. Ontario and Quebec need to wake up to the line 5 shut down by Michigan in May /21. When this happens all oil to Pearson airport is shut down. All of the Sarnia refineries are shutdown. All propane to Ont and Que gone. Gasoline will be shipped by truck and lake barge. Gasoline will be $4/liter. Wake up Canada.

and the Liberals will lose the election

bring it

#61 FOMO on 04.26.21 at 5:17 pm

https://wolfstreet.com/2021/04/25/the-wolf-street-report-perfect-time-to-sell-a-home-to-fomo-addled-buyers/

#62 Sail Away on 04.26.21 at 5:20 pm

#46 kommykim on 04.26.21 at 4:11 pm
#28 Sail Away on 04.26.21 at 3:17 pm

FYI, regarding yesterday’s overweighting CDN vs. US, here is a compilation of market returns, disregarding dividends:

——–

If you don’t include dividends, the comparison is flawed. The US will still outperform, but just not as much.

——–

Not flawed, since it’s clearly identified, but let’s examine the 10 year, including yield but also including exchange rate for completeness:

10 year CAGR:

US (VTI) + 1.37 yield = 6.17% annual
Total return 82% – (20% loss in exchange rate) = 62%

Canada (XIC) + 2.77 yield = 13.37% annual
Total return = 251%

So, $100k invested in each 10 years ago would today be worth $162k in the Canadian market, $351k in US.

Stark

#63 Sail Away on 04.26.21 at 5:23 pm

Whoops, wasn’t paying attention- totally swapped the countries:

Canada (XIC) + 2.77 yield = 6.17% annual
Total return 82% – (20% loss in exchange rate) = 62%

US (VTI) + 1.37 yield = 13.37% annual
Total return = 251%

#64 Reximus on 04.26.21 at 5:28 pm

Whatever it is, it reads like WALKING DEAD coming to reality near you – in New Brunswick. As I said, SEAL IT UP AIR TIGHT until this thing is sorted out.
——
It’s not clear what this problem is, but it almost certainly is not contagious…i.e. the patients are not from the same household, and not even the same town in most cases.

One thing IS clear: whatever the source, the patients all say the same thing: the early symptoms started about 2 years before the full-on disease was diagnosed: weird pains/spasms, behavioural changes, but manageable…my guess is a seafood pathogen

#65 Bartman on 04.26.21 at 5:42 pm

Garth at #41 – are you expecting a crux anytime soon?

#66 KVC on 04.26.21 at 5:54 pm

If more is revealed after the election regarding taxes and other ways to pay this deficit, when would that come into play income tax wise?

Like what year would it apply? 2021’s tax year or would it start for 2022’s income/ tax year?

#67 crowdedelevatorfartz on 04.26.21 at 5:56 pm

@#57 Mad World
“Perhaps add threat of releasing some old farts from jars?”

++++

They put old people in jars in New Brunswick?

#68 The Totally Unbiased, Highly Intelligent, Rational Observer on 04.26.21 at 5:58 pm

Some people do not like the current Canadian Prime Minister Justin Trudeau because he is evil and is destroying the country. But, they do have to admit that he is wise to do evil.

Spending hundreds of billions of dollars of other people’s money (OPM), that nobody has, in order to get elected is just common sense in politics.

Raising taxes to pay for all the spending would just anger the people being taxed more. That would make no sense at all.

The simple solution is for the federal government of Canada to spend more without raising taxes. In spite of all the criticism of Justin Trudeau for being stupid, and evil, and “just not ready yet,” he stumbled upon the magical answer.

This will all make plenty of sense to those who smoke lots of “medicinal” marijuana, which shows how smart Justin Trudeau was to legalize it.

Any needed money can simply be printed. (Warning: Do not try this at home with your laptop computer and your colour laser printer. It is not that simple. It requires special permission to do and is best left to the government.)

At a time when every pimple-faced, pornography-addicted, computer geek can make up his own crypto-currencies and each one of them can have any number of so-called “coins,” the Canadian dollar will look more modern and high-tech and “with it” if it is partly imaginary too.

The concern that unlimited spending and money printing will lead to the value of the dollar being inflated away and going to zero is a case of worrying about the future. Realistically, though, this probably will not happen immediately. It might take a few more years. Meanwhile, Justin Trudeau will have enough time and money to buy the votes and windmills and whatever else he wants before the financial system in Canada collapses.

This might not seem right or nice or responsible, but then the people who voted for Justin Trudeau are not exactly the right or nice or responsible types either. They wanted to cast off ALL restraint.

#69 Smartalox on 04.26.21 at 6:18 pm

@#2:

A wise person once explained to me that “Anything that is advertised, is NOT good for you!”

Think about it:
– Fattening, unhealthy fast-food restaurants
– Financial services / institutions with high fees and low returns
– Condo marketing, like when Returns on Investment are blatantly miscalculated (as exposed here), or pre-determined at all
– Sports teams instead of sports equipment

All of these things have to pay money to others in order to encourage you to use their goods / services. Most people lack the judgement to evaluate these options critically, and / or the bandwidth to explore alternatives that would be better for them.

Once you recognize that advertising is predatory, you can start re-evaluating your choices. Turn off the TV, be more discerning in what you read on the internet, and start engaging in trusting relationships with other people. Rely on ‘word of mouth’ for recommendations, and cultivate your own experience and judgement to separate the things that benefit you from the things that benefit others.

#70 Howard on 04.26.21 at 6:18 pm

More from the “US causing energy woes for Canada” file.

I just learned, from Tucker Carlson no less, about this Hydro Quebec plan to ruin Maine’s wilderness to supply “green” energy to Massachussets.

Mainers are fighting back. I am going to laugh so hard if they block this plan in their November referendum.

Sorry, Premier Legault, it appears that there is no social acceptability for Hydro Quebec in Maine.

Referendum in Maine could derail Hydro-Québec’s $10-billion electricity sale

https://ipolitics.ca/2021/03/02/referendum-in-maine-could-derail-hydro-quebecs-10-billion-electricity-sale/

#71 Steven Rowlandson on 04.26.21 at 6:19 pm

“Deficits to the horizon. Everybody gets a pony.
Missing? New taxes to pay for this stuff.”

Business as usual Garth. Protect yourself if you can.
One day it will end and badly. Not sure about the timing but this situation is unsustainable. Someone will pull the plug. Eventually people get tired of being strung along.

#72 VladTor on 04.26.21 at 6:27 pm

macduff on 04.26.21 at 2:58 pm
Garth, my financial advisor is really pushing for me to take CPP at 70, but I like your logic and think that 60 might make more sense (for me it would pay about $720 at 60 yoa). Can you provide talking points again about this?

(a) Get a new advisor. – Garth
************

Very easy! You don’t need new advisor.
Open Excel (Ms Office) and do simple calc.
Compare – first column – years ,second column how many CPP you will receive yearly each year if you take it in 60 and third column how many if you start receiving in 70.

See line when amount will be same.
For instance , I compared for myself – start to receive CPP at 62 compare with starting at 65.
Balance = zero was in 85 years.
Surprised !!!
Are you will be alive at 85? How long?
Good luck!

#73 TurnerNation on 04.26.21 at 6:47 pm

Bombardier Rec/Seadoo stock sprang to all time highs today. Summer, and guys like Yellow Tractor loading up the toys.

‘…Ain’t Nothing But a Hound Dog. Cryin’ all the time.’

–What’s really going on in Kanada.
– Wartime spending levels
– Wartime migration levels – out for the economically bom’d out cities
– Wartime Curfews
– Wartime checkpoints
– Suspension of travel, liberties
– Workers classified as Essential or Non-essential to the war efforts. (Non essentials will be sent to languish in a UBI economic camp)
– Goods being rationed by the governments, banned for sale.

And all this is for your health Comrade?


—Say Manitoba banning purchase of “non essential goods” months ago didn’t really make people healthier. This science being employed really is something, ain’t it? Don’t worry only for four more weeks.

https://globalnews.ca/news/7809332/manitoba-covid-19-update-april-26/
“The latest changes to the orders, which include a ban on both indoor and outdoor visits between households, kick in Wednesday and will last at least four weeks, Manitoba’s chief public health officer said Monday.”

—Better not be at checkpoints (I’m looking at you, leaked doc).

.Ontario formally requests assistance from Canadian Armed Forces to “deal with surge of COVID-19 patients”(toronto.ctvnews.ca)

*************
So sad this New System is focused on the children. Drugged from cradle to grave – gateway to T2’s 420 Soma? I hope not.

.Toronto Star TorontoStar
Antidepressant use among youth is skyrocketing across Canada. Prescribing doctors say they have little choice as teens ‘can’t wait nine months’ for therapy. The Star’s @mobocks has the story here:

#74 pPrasseur on 04.26.21 at 6:54 pm

No amount of tax hikes for the “rich” will solve Canada’s debt problem, quite the opposite.

Just in case though this might be a good time to cash in some of those cap gains, already did and more to come…

Good time to buy a Florida home before Biden’s inflation kicks in!

#75 Northshore guy on 04.26.21 at 6:56 pm

4208 Coventry Way, North Vancouver
Listed for 2.888m
Sold over asking 3.250m

No slowdown in lower mainland, now we have bidding wars for 3m homes. Give it 2 months and we will have bidding wars for 4m homes soon

BoC is carefully watching…

One listing. Seriously? Give us stats for all of North Van. – Garth

#76 AM in MN on 04.26.21 at 6:58 pm

#41 Blacksheep on 04.26.21 at 3:48 pm

3) National debts in the West (for sovereigns in control) will be made irrelevant. How this is going to happen I don’t know,

———————————————–

Many people do know, it’s called money printing. Been tried all over South America and Africa many times.

At some point the bond holders demand a higher rate of return, and thus when you have to refinance your mortgage you lose your house.

It’s a way of returning the sheeple to their natural state of tenants and serfs for the land owners, but in this case the masses just work and work and work to pay taxes and interest, but get free health care and education ….just like in Cuba!

#77 cuke and tomato picker on 04.26.21 at 7:02 pm

About when to take your CPP I took mine at 60 so far
been collecting it for 18 years 2 months as of April 28th
2021. My union advised me to take it as soon as possible.

#78 Phylis on 04.26.21 at 7:09 pm

#66 crowdedelevatorfartz on 04.26.21 at 5:56 pm
@#57 Mad World
“Perhaps add threat of releasing some old farts from jars?”

++++

They put old people in jars in New Brunswick?
Xxxxxxxxx
Only if they are pickled.

#79 Capt. Serious on 04.26.21 at 7:14 pm

#62 Sail Away on 04.26.21 at 5:23 pm

So your investment thesis is that because US returns have been higher than Canada the past 10 years, they’ll be higher in the next 10 years? That’s usually not how things turn out. Keep in mind ending in 2009 or even 2010 returns for US large caps were terrible for the preceding 10 years.

#80 Millennial 1%er on 04.26.21 at 7:18 pm

Garth, that first paragraph was a masterpiece. Thank you for continuing to make my lunch break!

#81 Rowdie on 04.26.21 at 7:26 pm

Don’t forget the inheritance tax, among high property taxes. Whoever is elected will up the anti on higher taxes. And, if you can afford 1M+ home you can afford the high taxes. It has been an interesting year, and living in strange times. It has been said life won’t be stable/back to normal until September.

Love the photo… animals are the best company!

#82 crowdedelevatorfartz on 04.26.21 at 7:27 pm

If Trudeau and his polyglot Rocket Scientists decide to tax people earning over $400k per year…..

Even more doctors will cut their hours to earn less than 400k and or immigrate to the US where they are appreciated.

Our “world class” healthcare just got shrunk….

#83 saskatoon on 04.26.21 at 7:33 pm

overt taxation is off the table; have you looked outside the window lately?

people have been stripped of the mental acuity to understand what inflation is.

the hidden and erudite inflation tax will pay for all the government goodies and promises going forward.

and no one will know what hit them.

#84 cuke and tomato picker on 04.26.21 at 7:37 pm

About when to take your CPP I took mine at 60 so far I have been collecting it for 18 tears 2 months as of April 28th 2021. My union advised me to take it at 60.

#85 Heather on 04.26.21 at 7:39 pm

You don’t have to be wealthy to max out on your TFSA.

#86 Ponzius Pilatus on 04.26.21 at 7:41 pm

I’m celebrating my 14th day after the Moderna shot.
Went to the Government Liquor store and picked up the usual Jägermeister and then I saw some bottles of “Baron” Czech dark beer.
Picked up a couple, and will drink them in honor of Billy Bob, who’s still stuck in the Czeck Republic, and hoping soon to be able to return to the Best Country in the World.

#87 the Jaguar on 04.26.21 at 7:47 pm

Oh dear. Appears my last post earned me my first ‘delete’. Had a feeling there was no future for me as a standup comic, and pretty sure I had it coming. Not sure what I can add to the continuing turmoil we find ourselves in anyway.
So much going on.

#88 Ponzius Pilatus on 04.26.21 at 7:50 pm

BTW,
I only drink European beer.
We call North American Beer “piss beer”.
There are exceptions, though.
But I noticed that there is a shortage of good European beers in the BC Liquor stores.
Any other connoisseur of good beer, feels the same?

#89 What others said... on 04.26.21 at 7:52 pm

#68 Smartalox

——————

I could not agree more.

I actually find it very interesting how perverted things have gotten on the advertising front. What is permitted and what these companies can get away with is criminal.

Facebook for one is a giant CREEP! How are the permitted to creep on people like they do? And all to pedal garbage with their algorithms.

TV…I understand if I’m watching free TV on a free antenna that advertising will be there to pay for the service I’m getting free, but once you pay for cable…how and why in the world are we tolerating ads?

“And tonight we’re playing a movie. And while you’re watching that story, we’re going to keep interrupting it, tapping you on the shoulder ever 10 minutes to tell you about the new model of car, new frozen pizza and get you to pre-plan your funeral. Now, back to the movie story!”

My tolerance for ads is running very low.

You speak of bandwidth? I thought about it, and I have no bandwidth for advertising. Social media – never use it. Saw it for what it was from day one. Cable TV – OUT! Mainly to get 24 hour news off my TV, but paying for ads a close second. I tolerate ads on TV now, but that’s because it is free OTA. The rest is either streamed ad free or from disc – and even that, have you bought a bluray lately? I have to watch some nonsense about piracy and previews? And I am not allowed to bypass this? I just paid for this disc! I should do what I wish to do if I don’t want to see upcoming movies.

People in “The West” look down upon countries like Russia and North Korea for their terrible terrible propaganda…while surrounded by propaganda on such intrusive scale, if it was a human it would be arrested, charged with endless counts of stalking, found guilty, imprisoned with restraining orders against it.

However, somehow the CREEPS in these ad farms get away with it. How?

POLITICIANS ALLOW IT! They allow the creepy behaviour of social media companies. They allow our data to be bought and sold and owned. They allow the invasion of our privacy. WHY?

#90 Mad World on 04.26.21 at 7:53 pm

#66 crowdedelevatorfartz on 04.26.21 at 5:56 pm
@#57 Mad World

“Perhaps add threat of releasing some old farts from jars?”

++++

They put old people in jars in New Brunswick?

++++

PRICELESS setup, right? Glad it didn’t go to waste.

#91 kommykim on 04.26.21 at 7:58 pm

RE: #62 Sail Away on 04.26.21 at 5:23 pm
Whoops, wasn’t paying attention- totally swapped the countries:

Canada (XIC) + 2.77 yield = 6.17% annual
Total return 82% – (20% loss in exchange rate) = 62%

US (VTI) + 1.37 yield = 13.37% annual
Total return = 251%

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

That’s what happens when you cherry pick your timeframe. The 10 year timeframe is the worst:

5 Years = 9.3% TSX vs 13.3% S&P500
10 Years = 5.8% TSX vs 16.7% S&P500
20 Years = 6.2% TSX vs 6.6% S&P500
50 Years = 9.3% TSX vs 11.3% S&P500

Total Return Index, annualized returns, and converted to CAD ending Dec 31, 2020.
Sure, the USA outperforms, but not really by that much over very long timeframes. And then there’s the better tax treatment of Canadian dividends vs US for Canadian investors.

#92 Paul on 04.26.21 at 8:09 pm

Everything is maxed and invested in ETFs. My wife and my tfsas, spousal rrsp, and kids joint resp. Plus a unregistered investment acc.
Wife has about 30k room in her rrsp. 60k salary. Is it worth it to max out?

#93 Sail Away on 04.26.21 at 8:17 pm

#78 Capt. Serious on 04.26.21 at 7:14 pm
#62 Sail Away on 04.26.21 at 5:23 pm

So your investment thesis is that because US returns have been higher than Canada the past 10 years, they’ll be higher in the next 10 years? That’s usually not how things turn out. Keep in mind ending in 2009 or even 2010 returns for US large caps were terrible for the preceding 10 years.

———–

More like US returns have significantly and consistently outperformed for the past 6 mo, one year, 5 year and 10 year timeframes, CAD has lost 20% relative to USD in this time AND the US is currently open for business while Canada is shut down.

Your thesis?

#94 greaterfool on 04.26.21 at 8:29 pm

my immediate thoughts after reading today’s blog is…. buy another house! seems that is the only one safe and encouraged!

Libs won last time due to younger voters. Now, majority of them have given up hopes on owning a property. If libs doesn’t promise anything during election, will those young voters still support/vote for libs?

the oppositions are too weak! haven’t heard anything from them either. All the emails/communications from PC are asking for donation! Lucky Socks!

#95 Wrk.dover on 04.26.21 at 8:34 pm

#69 Howard on 04.26.21 at 6:18 pm

Mainers are fighting back. I am going to laugh so hard if they block this plan in their November referendum.

Sorry, Premier Legault, it appears that there is no social acceptability for Hydro Quebec in Maine.

Referendum in Maine could derail Hydro-Québec’s $10-billion electricity sale

______________________________________

“Couldn’t happen to a bunch of nicer byes”, Says Joey Smallwood’s ghost.

#96 Joe Fader on 04.26.21 at 8:41 pm

#21 macduff on 04.26.21 at 2:58 pm
Garth, my financial advisor is really pushing for me to take CPP at 70, but I like your logic and think that 60 might make more sense (for me it would pay about $720 at 60 yoa). Can you provide talking points again about this?

(a) Get a new advisor. – Garth

————–
I would hold off canning your advisor until you read the book “retirement income for life” by Fred Vettese
as he outlines the benefits of delaying CPP until 70

Vittesse gives tired advice (like buying annuities in a low-yield world) and says people with $3 million or more in financial assets should delay taking CPP. Go figure. – Garth

#97 Flounder on 04.26.21 at 8:43 pm

How are you going to tax a revenue base that’s almost 50% are on verge of bankruptcy? When RE implodes, there will be a further gnashing. Also, the attached blurb from the Financial Post is bang on. 2022 is going to be interesting.

https://www.google.ca/amp/s/financialpost.com/investing/david-rosenberg-housing-is-keeping-canadas-economy-going-and-thats-bad-news-when-the-bubble-pops/wcm/7be2aa07-a7f0-431e-aaba-26d070e5c7c1/amp/

#98 Nonplused on 04.26.21 at 8:56 pm

#54 Bob’s Your Uncle on 04.26.21 at 4:45 pm
Garth, there are two big revenue generating taxations that you missed: a land tax, and a financial transaction tax. These two will help pay down the deficit quite quickly.

——————————————-

Land is already taxed at the municipal level.

I’ve never really understood how a financial transaction tax would work. Is it applied to stock transactions? That would definitely kill the HFT business. What about bonds? What about swaps and options? If so, does that include commodity futures and swaps? And where is all this magic money supposed to come from? There is only so much money so whatever comes from this financial transaction tax will have to disappear from somewhere else in the economy. Despite the fact that the money supply grows over time, at any given point in time there is only so much of it. If it were not so there would be no need for a deficit.

#99 crowdedelevatorfartz on 04.26.21 at 8:58 pm

@#87 Ponzies Pee Pot
“I only drink European beer.
We call North American Beer “piss beer”.”

++++

Well.
As i have matured in my drinking tastes.
I regrettably agree with Ponzie.
Most generic North American beers taste like the spittle in the bottom of an ashtray after a Cigar Convention.
But I digress.
The Micro Brewery chocolate flavored “beer” and the Strawberry/Grapefruit/whatever infused monstrosities called “beer” also make me want to vomit….
Just give me a lager (or ale) that is creamy, smooth and doesnt make me gag, wince and look for a spittoon.

#100 crowdedelevatorfartz on 04.26.21 at 9:02 pm

@#94 Wrk.dovr
“Referendum in Maine could derail Hydro-Québec’s $10-billion electricity sale

______________________________________

“Couldn’t happen to a bunch of nicer byes”, Says Joey Smallwood’s ghost.

+++++

Hilarious.

I also cant wait for Newfoundland to hammer the bejeezus out of Quebec when the renegotiation for the Hydro Electricity from Labrador’s dams ramps up.
Quebec got one hell of a sweet deal many decades ago from the Joey Smallwood rubes for dirt cheap hydro power………
THAT aint happin again.

#101 Faron on 04.26.21 at 9:03 pm

#88 What others said… on 04.26.21 at 7:52 pm

#68 Smartalox

First, when you sign up for a free facebook account, you agree to a terms of service. No one reads it, but it tells you that they are harvesting data off of your like an ant sucking nectar out of an aphid.

Second, you are the product, Facebook just gives you an apparent wonderland to describe precisely to them what you are so they can sell you.

All that said, there are more and more rumblings of regulation. Facebook and Twitter are essentially utilities at this point and should be regulated as such.

#102 Patty on 04.26.21 at 9:05 pm

DELETED

#103 Faron on 04.26.21 at 9:16 pm

#87 Ponzius Pilatus on 04.26.21 at 7:50 pm

BTW,
I only drink European beer.
We call North American Beer “piss beer”.

Whaaaaaaaat? I haven’t been to Europe in a while, but my recollection is that you can sample any of a wide variety of beers as long is they are a Lager or a Pilsner. Okay, if you bump up against the North Sea, things get a bit more interesting.

There are diverse and delicious beers here in N. America. Maybe a Canadian lager doesn’t match the best German one or an Austrian weissen. But, that’s just one or two categories.

All of that said, my best beer experience was stumbling into a seasonal release of a Dutch monastery’s beer in a tiny town on the North Sea. The town was dead quiet, it was a rainy fall night and there was one pub open but it was rammed. I ordered a Hoegaarden but soon noticed that everyone was drinking something else. That’s where I first learned that there’s a glass for each beer style.

But, TBH, I drink a fair amount of Coors Light. Turned onto it crewing in RTB races. So, perhaps you shouldn’t trust my judgment.

#104 Nonplused on 04.26.21 at 9:16 pm

#69 Howard on 04.26.21 at 6:18 pm
More from the “US causing energy woes for Canada” file.

I just learned, from Tucker Carlson no less, about this Hydro Quebec plan to ruin Maine’s wilderness to supply “green” energy to Massachussets.

Mainers are fighting back. I am going to laugh so hard if they block this plan in their November referendum.

Sorry, Premier Legault, it appears that there is no social acceptability for Hydro Quebec in Maine.

Referendum in Maine could derail Hydro-Québec’s $10-billion electricity sale

https://ipolitics.ca/2021/03/02/referendum-in-maine-could-derail-hydro-quebecs-10-billion-electricity-sale/

——————————————–

Truly stunning. It is pretty hard to figure how this green economy or green new deal is going to work if they aren’t even allowed to build power lines to get the electricity from where it is generated to the areas where it is consumed.

It is a good lesson in how business is done in the US. If you own a gas plant in Massachusetts and a competitor comes along that might threaten your profitability with green hydro power, you fund a bunch of environmentalist to find the power line would be too harmful for the deer. If you own a railroad shipping oil from Alberta to Texas you hire an environmentalist to protest pipelines. If you own a refinery in Seattle you fund a bunch of protest groups to stop Trans Mountain.

#105 crowdedelevatorfartz on 04.26.21 at 9:31 pm

BC Cullen Commission into Casino Proceeds of Crime Money Laundering investigation.

Current NDP Attorney General david Eby testified today.

2015 : He was the opposition critic and was offered a tour of BC Casinos. He was assured “it was impossible to launder money…”

2017: He became the new Attorney General of BC and received the same assurance from the BC Lottery Corp.
‘Money laundering was not possible”

When he then asked other personnel he was told, “Not only is it possible…it was ongoing”
When challenged by Eby, the BCLC “didnt want more severe restrictions”
The Attoreny General also admitted he ,” Couldnt rely on information from some govt depts….”

When challenged by a Commission Lawyer as to why he was critical after he became AG and he was able to rely on hindsight about the money laundering issues in the govt monitored casinos….

Attorney General David Eby replied, “I didnt need to rely on hindsight…..”

Stay Tuned ,
“Rich” Coleman former RCMP officer, Former Liberal Minister of Gaming, Former minister of Booze……will be testifying soon.

#106 Armpit on 04.26.21 at 9:38 pm

“24 Josh in Calgary on 04.26.21 at 3:04 pm

Garth,
I’d double check the spousal RRSP thing. We’ve done this as per your suggestion and saved some taxes. Up until this year that is. We’ve been pulling it out to take advantage of my spouse staying at home with the kids. This year the amount we “lost” in other tax breaks and government child payments negated any advantage. It’s still a good thing to contribute to a spousal plan but pulling it out when you have a stay at home parent might not make sense.”

—————————————————

Unless the rules have changed – insure there hasn’t been a Spousal RSP contribution in the past three years as the the withdrawals amounting to that or less will be attributed as income to the contributor.

“If the annuitant withdraws funds from the Spousal RRSP within 3 years of a contribution, that amount will be added to the contributor’s taxable income in the year of the withdrawal.”

#107 Nonplused on 04.26.21 at 9:39 pm

#80 Rowdie on 04.26.21 at 7:26 pm

“Don’t forget the inheritance tax, among high property taxes. Whoever is elected will up the anti on higher taxes. And, if you can afford 1M+ home you can afford the high taxes. It has been an interesting year, and living in strange times. It has been said life won’t be stable/back to normal until September.”

————————————

There already is a sort of inheritance tax. The estate must be deemed liquidated in the year of death so the RRSP’s get cashed out and the non-sheltered assets marked to market and taxes are calculated. For anyone with money the year you die is your worst tax year ever and you hit the 50% bracket on nearly all your assets (except the primary residence and any cash in the bank).

Or are you suggesting that even after you pay 50% tax upon being dead, your kids should pay another 50% of the remainder? And what about people like Bill Gates who put much of his wealth in so-called charities so that he can fund his favorite vaccine programs rather than pay taxes, long after he is dead?

The fact is that the government has been very creative at exploring every possible avenue that might actually increase tax receipts. We are at peak tax. At this point all we can really do is tweak from whom the taxes are collected in the name of “social justice”.

The only thing “taxing the rich” does is reduce the number of audits it is worth doing for the CRA. The rich just raise their prices to cover the tax, so we all pay it. They have pricing power, or they wouldn’t be rich.

It is hard and expensive to become a doctor. So when you move said doctor to a higher tax, they don’t just say to themselves “Uh. Well I guess I deserved that. I’ll just pay and live with less.” Nope, they say “Huh. Well I guess I am going to need to charge $150 an hour now instead of $140.” And since the government pays most of the doctors, the money just went in a loop. But when a tow truck driver is forced to make the same decision, you pay more to get your broken vehicle off the road. And then the mechanic charges more too.

#108 DON on 04.26.21 at 9:41 pm

#39 Heath Slee on 04.26.21 at 3:44 pm
Garth,
Like to hear your thoughts on life insurance pros and cons as well as tax benefits if any.

Only insure for a need, not an emotion. – Garth

************
I followed Garth’s advice on this point about 10 years ago when emotions were running high. Look at term insurance if there is a need. Invest time in taking care of yourself.

#109 Dr V on 04.26.21 at 9:46 pm

91 Paul

At $60k, 18% contribution is $10800, which will take her from a 28.2% tax rate to 22.7% in BC.

https://assets.ey.com/content/dam/ey-sites/ey-com/en_ca/topics/tax/tax-calculators/2021/ey-tax-rates-british-columbia-2021-01-15-v1.pdf

So if the plan is to keep her retirement income at about $49k (incl RRSP/RRIF withdrawals) it is “worth” about $600 a year, plus tax free growth, minus the difference between tax paid on RRSP/RRIF income and preferential tax on unregistered (elegible dividends tax
free up to $49k income!).

My original plan was to draw down my RRSP more heavily in the first few years so as not to fall into a minimum RRIF withdrawal which was higher than I wanted. My advisor ran the numbers through her newest simulator, and surprised both of us when it showed a combination of RRSP/TFSA/unregistered was more tax efficient.

One year showed zero tax, which is probably just a re-balance of some kind. Will re-visit the whole thing soon.

Both my advisor and accountant recommended keeping some RRSP room for my last year of work, so I can max my wage and draw down my corp.

So it really is a “big picture”, and you should talk to your advisor.

#110 crowdedelevatorfartz on 04.26.21 at 9:46 pm

@#89 Mad World.

Ahhh but #77 Phylis capped that rebuttal off very well….

A shout out to CrowdieCoughCoffee…… I’m on a rollllllll.
:)

#111 Nonplused on 04.26.21 at 9:48 pm

#100 Faron on 04.26.21 at 9:03 pm
#88 What others said… on 04.26.21 at 7:52 pm

#68 Smartalox

First, when you sign up for a free facebook account, you agree to a terms of service. No one reads it, but it tells you that they are harvesting data off of your like an ant sucking nectar out of an aphid.

Second, you are the product, Facebook just gives you an apparent wonderland to describe precisely to them what you are so they can sell you.

All that said, there are more and more rumblings of regulation. Facebook and Twitter are essentially utilities at this point and should be regulated as such.

——————————————

Why would they regulate something that is completely useless and unnecessary? Just delete your account.

#112 crowdedelevatorcoughz on 04.26.21 at 9:48 pm

Cough! Cough! Let me squeeze in there folks, heading up to the penthouse of success tonight!

So glad to see that…Cough! Cough!…10% of all comments so far tonight are by me, and you all…Cough! Cough! really love me and even reply to me!

See, this blog really belongs to…Cough! Cough!…me and my fragile ego.

Mind if I ride back down with you to…Cough! Cough!…tell you a little more about me?

#113 conan on 04.26.21 at 10:23 pm

The G 20, plus or minus, will come to an agreement on corporate tax rates. That will be worth something.

#114 Yuus bin Haad on 04.26.21 at 10:45 pm

first there was the chinstrap face mask – now we have the bro fist elbow bump

#115 S.Bby on 04.26.21 at 10:58 pm

I don’t see this ongoing for another year.

#116 T-Rev on 04.26.21 at 11:51 pm

I’ve been thinking that maybe we’re wrong Gartho.

The entire country has over-leveraged themselves in the past decade, including not just individuals but all levels of government. The government, in the form of insured mortgages, bond issuance, bond ownership, and a need to prop up the to big to fail banks, is on the hook for all this. I mean, maybe not at first or intentionally, but by increments it has become wrapped up in both public and private debt to a point where it actually has no choice but to support it. Can you imagine the fallout if rates were to increase substantially and housing crash? Yeah yeah, the government doesn’t set the cost of money the bond market does….to a degree. But that market is clearly been shown to be subject to manipulation through QE and other central bank wizardry. And the government can’t let housing collapse because it would literally take society with it at this point, no??? Or am I being over dramatic? We are in unprecedented territory with regards to the amount of GDP the housing sector makes up. Combine that with government backed mortgages and banks that can’t be allowed to fail, and a populace that will be eating cat food if rates rise beyond 3-4%, and I think there no possible way that the government can allow this gasbag to burst. Slow it down? Sure. Burst, I don’t think so. It’s not 1989. It’s not just Toronto. It’s not just a small percentage of people in one town who have bought over a short time of large price inflation. It’s country wide and has been going on for almost two decades now. There is no bootstrapping anymore. No personal responsibility. They don’t want you to have that power and freedom- and we’ve given it away for comfort and security. The nanny state reigns supreme and Big Brother has assumed all the risk for everyone and everything. We’ve traded our individual sovereignty for this, bit by bit, over decades.

I’m not saying housing is a financial plan. I’m not saying asset concentration isn’t dangerous. I’m just doubtful that it will ever be allowed to implode- rates will be suppressed. Money printed. Hard assets will rise in value as inflation takes hold. And all that debt gets smaller as a result. Savers are punished. And the population is pushed inexorably further towards wealth redistribution and dependence on the state. This is the way.

Of course I could just be depressed cause my harley broke a throttle cable tonight so I couldn’t ride and spent too much time thinking instead. I’ve been wondering if there are any recent historical analogues we can look too for some idea of what’s in store.

#117 Ponzius Pilatus on 04.26.21 at 11:52 pm

My issue with North American beer is there are no ingredient labels.
German beers have four ingredients:
Water, barley, hops, yeast.
Period.

#118 Blacksheep on 04.26.21 at 11:55 pm

AM # 75,

“#41 Blacksheep on 04.26.21 at 3:48 pm

3) National debts in the West (for sovereigns in control) will be made irrelevant. How this is going to happen I don’t know,

———————————————–

Many people do know, it’s called money printing. Been tried all over South America and Africa many times.

At some point the bond holders demand a higher rate of return, and thus when you have to refinance your mortgage you lose your house.

It’s a way of returning the sheeple to their natural state of tenants and serfs for the land owners, but in this case the masses just work and work and work to pay taxes and interest, but get free health care and education ….just like in Cuba!”
—————————
Bond holders, what bond holders?

The Fed/BoC just buys their own bonds and can do so indefinitely. Will the national debt run up? You bet and that’s where this story might (has to) change.

A sovereign in control could take back the function of money creation, any time they choose. This move would of course be catastrophic if only a single sovereign was to attempted it, but if a US led coalition made this move, who knows….We have lived in an MMT world since 1971, but the system has been keeping it from the little people because they would all suddenly question, why the hell are they forced to pay taxes at all?

All I know is, you can’t get blood from a stone…

#119 Dr V on 04.27.21 at 12:51 am

80 Rowdie

“And, if you can afford 1M+ home you can afford the high taxes.”

Problem is Rowdie, just because you own a $1M home doesn’t mean you generate any income from it.

Think of the senior couple who bought for $125k years ago, raised a family, did save something, and now sit in a house supposedly of that value. They have gained
nothing until they sell, and if they want to downsize, they are buying in an expensive market.

#120 tkid on 04.27.21 at 1:04 am

https://i.redd.it/rfcq0t3polv61.gif
https://i.redd.it/ddqu92pwolv61.gif

The above is a link to a flood – on the 41st floor – of a condo building in Toronto. Reported to be a building at Yonge/Sheppard.

Sometimes it pays to rent.

#121 Nonplused on 04.27.21 at 1:59 am

A bit of a muse about where this is all going with automation.

My wife came into some money and decided she wanted a Roomba. They were on sale at Costco so I bought her one with her money. Interesting watching it work.

Now, previously I had thought these things were gimmicks that just randomly drove around and bumped into things. And they were.

But this new one, with nothing but a bump pad and some software, was able to draw a pretty decent map of our house within a couple hours of being turned on, and send said map to my wife’s phone for editing. Just by counting wheel revolutions and bumping. It was fascinating to watch it bump into something and then instead of turning around, bump all the way along and draw the wall or whatever on the map. It did not turn around and go the other way as earlier Roombas did, it intentionally followed the wall until it figured out where it started and where it ended and then drew a map.

All by bumping and counting wheel rotations.

I am not even sure there are any sensors in the bumper. It might be doing it all with 2 servo motors and monitoring the amps vs. speed.

So if a little toy gizmo that doesn’t really cost anymore than a traditional vacuum cleaner can map your house and find its’ own charging station just by bumping around is possible, what’s next? And don’t forget it gives intrepid cats free rides. Worth the price right there.

#122 Northshore guy on 04.27.21 at 2:51 am

Northshore guy on 04.26.21 at 6:56 pm
4208 Coventry Way, North Vancouver
Listed for 2.888m
Sold over asking 3.250m

No slowdown in lower mainland, now we have bidding wars for 3m homes. Give it 2 months and we will have bidding wars for 4m homes soon

BoC is carefully watching…

One listing. Seriously? Give us stats for all of North Van. – Garth

——

I am not a realtor and so hard to get stats for all, unless we wait for end of the month. I am sharing based on notifications I get and general stuff I hear from people I know who are active in the market.

But if you really wanna know, according to Zolo the monthly prices are up 4.4% in last 28 days with approx 300 transactions.

But I don’t really read into Zolo stats much because they get huge data dumps randomly and stats change overnight.

I am honestly just sharing what I am seeing on the ground. There were no bidding wars on 3m price point 6 weeks ago, and so it looks like people who are moving up from 2m shacks are now bidding up 3m properties.

#123 Wrk.dover on 04.27.21 at 6:01 am

Beer talk for breakfast? The test is to try it warm. Coor’s light has the worst fail. Keith’s tastes like water peas have been boiled in.

American canned Old Milwaukee, dirt cheap is similar to much Euro beer, believe it or not.

If you ever get a chance to buy Genessee Cream Ale from upstate NY, you won’t be disappointed.

I brew my own. $25/hr after tax-saved-earn.
Corona bottles are best for the clean inspection, and capping.

#124 BillyBob on 04.27.21 at 6:53 am

#116 Ponzius Pilatus on 04.26.21 at 11:52 pm
My issue with North American beer is there are no ingredient labels.
German beers have four ingredients:
Water, barley, hops, yeast.
Period.

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

Found this pic of you on your daily stroll through Stanley Park.

https://ibb.co/zHmnwXX

German and Austrian beers are very good.

Czech beer is easily the world’s best. Hands down.

And cheap. In a supermarket a 500ml bottle/can (none of this 330ml nonsense) is 20-25 CZK (about 1.20 – 1.50 CAD). That’s taxes in, of course, only North America adds tax at the till.

And that’s for incredibly good, fresh beer that was brewed at most a few days earlier. On tap in a pub is usually from the day before and a little more of course, especially in the city centre, as is normal anywhere. A craft brew might be as much as 70-70 CZK (4.60 CAD) for 500 ml.

When I contrast that with some commercial swill selling in Canada for 15+ bucks for a sixpack of little cans (+ GST, PST, HST, whatever), I just can’t do it. Or paying that for a pint in some faux-sports bar. I know there are some fine microbrews, but the pretentious cutesy pun-names of most of them and the PRICE! And far more prevalent are the pitchers of Canadian at the Boston Pizza. Ughhhhhh…

Not to mention the culture. To be able to sit in a park and drink a cold beer without hassle whatsoever has no price. Having a small (300ml) beer with lunch during the workday is perfectly normal. Women as well, no gender stereotyping here. Civilized. No drama.

It’s not by accident the best beer in the world is from here. They drink a damn lot of it. And why not? They gave the world pilsner, all lagers are descendants of the town of Plzeň. Not to mention the real Budweiser (not the American garbage) hails from Budvar. You’re welcome.

https://news.expats.cz/czech-food-drink/the-czech-republic-leads-all-nations-in-beer-consumption-per-capita-by-a-whopping-78/

https://www.expensivity.com/wp-content/uploads/2021/02/3-How-Much-Beer-Do-People-Drink-Map-avg-consumed.jpg

#125 Sail Away on 04.27.21 at 7:01 am

Time to go stratospheric, baby.

Tesla Posts Record Earnings:

https://www.google.com/amp/s/www.cnbc.com/amp/2021/04/26/tesla-tsla-earnings-q1-2021-.html

#126 the Jaguar on 04.27.21 at 8:02 am

ALMOST HALF OF U.K. OFFICE WORKERS BACK AT THEIR DESKS
National Post 27 Apr 2021

White-collar workers in the U.K. returned to their offices last week in numbers not seen since the start of the pandemic as the vaccination rollout continues and lockdown restrictions ease. Office occupancy levels across the U.K. topped 40 per cent Tuesday through Thursday last week, reaching a high of 45 per cent on Wednesday, according to data from Metrikus. That’s higher than any point since the 72 per cent recorded on March 12, 2020, shortly before the government urged the public to move to working remotely. The Metrikus data is based on sensors installed at large office buildings in the U.K.’S biggest cities, which track daily entries. The proportion of these workers heading back to the office has surpassed the peaks they reached in the fall, when the government also attempted to soften lockdown measures.

#127 crowdedelevatorfartz on 04.27.21 at 8:23 am

@#111CrowdedCoffeeCough

Imitation.
The highest form of flattery.

#128 Canada a failed nation and Ontario a failed province on 04.27.21 at 8:48 am

All sides are calling on
@fordnation& @celliottability
to resign:

-longest lockdown in the world
-14% only ICU increase
-250k surgeries gone.

-1 M less cancer screens
-depression+despair
-Schools closed
-small business dead
-police state attempt
-lies

One year of Government MASSIVE STUPIDITY…

THE MERE FACT THAT THEY CONTINUE WITH IT IN THE FACE OF CONTRARY EVIDENCE POINTS TO A MUCH MORE SINISTER AGENDA AS INTELLIGENT PEOPLE HAVE POINTED ALL ALONG

#129 Zen Investor on 04.27.21 at 9:03 am

Re RRSP for the rich ? Really only the stupid stuff an RRSP. Why? Because it’s a sucking tax trap waiting to burn a huge hole in your tax and income planning when you retire. Do nothing? Watch the ’71 and Stupid Tax’ kick in when the claw back starts. RRIF isn’t enough.

Ideally you retire ten years early to drop your highly taxed earned income. Next start the incremental RRSP drawdown to reduce the tax owed on the accumulated gross amount. Best take money out to use as lower taxed issues ( investment/ dividend) and to tax free TFSA.

The rich aren’t stupid.

BTW, another milestone tradition kicked to the curb today in our once stellar relationship with the incoming President of the United States.

PM Suge of Japan took our spot as the first foreign head of government to visit the White House. Thank you Mr Trudeau. I’m sure wherever else you may have been, rather than representing a proud Canadian tradition, the photos taken of you will be found on CBC.

RRSPs are an excellent tax-shifting mechanism. Mandatory RIF withdrawal rates are tiny, so unless you have a $2 million RRSP, what’s the issue? BTW, you are totally wrong to drain registered investmens prior to non-registered ones. So stop giving advice. – Garth

#130 Sara on 04.27.21 at 9:10 am

#111 crowdedelevatorcoughz on 04.26.21 at 9:48 pm

LOL

#131 NoName on 04.27.21 at 9:29 am

#124 Sail Away on 04.27.21 at 7:01 am
Time to go stratospheric, baby.

Tesla Posts Record Earnings:

https://www.google.com/amp/s/www.cnbc.com/amp/2021/04/26/tesla-tsla-earnings-q1-2021-.html

Funny that

https://mobile.twitter.com/ZR1Trader/status/1386789168580235264

#132 Deaner on 04.27.21 at 9:34 am

The real question is whether the Libs will use antiracism or feminism to justify cutting TFSAs and RRSPs.

#133 Old...Farts in Jars on 04.27.21 at 9:51 am

#111 crowdedelevatorcoughz on 04.26.21 at 9:48 pm

Mind if I ride back down with you to…Cough! Cough!…tell you a little more about me?

Are you going to just cough on the elevator ride down, or release a silent but deadly….hm hm…”comment”?

One will get you arrested while the other…not so much – more of a faux pas.

#134 G on 04.27.21 at 9:54 am

Hi #21 macduff &#95,

You can only get CCP when you are alive.
Take it as early as you can. So you can and A use it, B invest the money so it grows a bit. If you pass before 70, or only make it to 71 at least there will be something for your loved ones to inherit. You have been working and paying into the plain all your life after all.

#21, look for new advisor. You did take note of the contact Garth at the top didn’t you? BTW, I have know idea if Raymond James is taking on new people or what you might need you to have in saving to qualify.

Garth’s Greaterfool free advice is worth every penny either way.

#135 G on 04.27.21 at 10:07 am

Censorship, free speech, freedom, internet free speech and freedom to see what others have to say.

Just got this info from a federal party about PMT plans.

There’s even talk of imposing mandatory ‘take downs’ of content within 24-hours of reporting.
This Liberal government’s internet censorship program will undermine our democracy, and erode free speech in Canada.
This is the direction of our country under Justin Trudeau. The Liberals will continue to go too far in the name of being woke – leaving millions of Canadians behind in the process.
This bill is so bad that University of Ottawa Law Professor, Michael Geist, has called the Liberals‘the Most Anti-Internet Government in Canadian History’…

#136 G on 04.27.21 at 10:12 am

Canadian government accused of ‘assault’ on free speech over proposal to police videos posted on social media
https://www.rt.com/news/522246-canadian-government-free-speech-assault/

#137 What are you saying? on 04.27.21 at 10:17 am

#127 Canada a failed nation and Ontario a failed province

[email protected]#$%^&*()_+

I don’t understand what you are saying. What are you trying to say?

Are you saying we’re cutting off our nose to spite our faces?

Are you saying politicians lie and deceive?

Are you saying politicians never waste a crisis? …and Canadian politicians are really good at it? Skating past record spending, charity ethical scandals, amazing black-face photos…why isn’t he called Teflon-Justin yet by the way?

Are you saying Covid is most important thing ever and no other health issue matters?

Are you saying Doug Ford got a haircut somehow in the middle of the “strictest lockdown” and biggest wave?

I don’t know what you are trying to say man. Please…express your opinions, views and thoughts clearly.

I’m off to watch Corona-tion Street on CBC – the Corona Broadcasting Corporation. Wonder if they will wear masks on today’s episode? Probably not.

#138 Doug in London on 04.27.21 at 10:19 am

@ the Jaguar, post #125:
Yes, the U.K has reached or soon will reach herd immunity. Here in Canada we’re nowhere near herd immunity, but it will come eventually. Just like in the U.K., many white collar workers will find themselves back in the office. Something to think about if you moved to a place like Bancroft or Tillsonburg, thinking you’d be working from home for the rest of your working days.

#139 Handsome Ned on 04.27.21 at 10:24 am

I don’t always drink beer but when I do I drink Dos Equis. That is because they based “the most interesting man in the world” on myself.

#140 G on 04.27.21 at 10:43 am

Is this a Trojan house to sneak in corruptible/hake able electronic voting machines.

Are you paying attention? Canada’s federal elections are still on paper ballots counted by humans/the peoples hands.
If that changes what would be the point in voting, the results can be what ever the controllers of the soft wear would like it to be.

From some group called fair vote Canada.
(which might have a point, but not if it mean getting ride of the Paper Ballots and human hand counting of the votes!)

We have one last chance for a real step towards electoral reform in this minority government―and we need your help!
Already, an amazing 12,500 of you have sent a letter to Justin Trudeau and the MPs on the PROC (Procedures and House Affairs) Committee.
We are calling on them to vote for a motion by the NDP’s Democratic Reform Critic, Daniel Blaikie, on a National Citizens’ Assembly on Electoral Reform!

#141 Dharma Bum on 04.27.21 at 10:49 am

“Apply for your CPP early, unless you already know your death date…” – Garth
—————————————————————————

The wife an I turned 60 a year and a half ago.

It’s gratifying to see the combined CPP that was taken the second it was available ride the massive investment gain wave that was 2020 and so far 2021.

Why the hell would I wait another 5 years to see a penny? Lord only knows (Jack Lord) what this insane government could do to rape the people by that time.

A bird in the hand…plus investment time.

A dollar in your control today is better than a promised dollar tomorrow. Especially when a monster like JT is running the show.

Thanks Garth.

#142 Sail Away on 04.27.21 at 11:00 am

#130 NoName on 04.27.21 at 9:29 am
#124 Sail Away on 04.27.21 at 7:01 am

Time to go stratospheric, baby.

Tesla Posts Record Earnings:

————

Funny that

https://mobile.twitter.com/ZR1Trader/status/1386789168580235264

————

Jackals will always mewl. How about that Starlink?

#143 Faron on 04.27.21 at 11:23 am

It’s a pitty that porters and stouts are out of fashion. Glad to see that the nuclear arms race of hoppification is going out of fashion. That was just dumb.

I have questions:

#116 Ponzius Pilatus on 04.26.21 at 11:52 pm

What do Germans put in a weisse?

#123 BillyBob on 04.27.21 at 6:53 am

Mostly agree, but what is it about the name of a beer that makes it taste any different?

I also like cheap booze and despise public drinking laws, but then there’s this other side of that coin:

https://pubmed.ncbi.nlm.nih.gov/31901189/

#124 Sail Away on 04.27.21 at 7:01 am

Then why is Tesla stock being sold like christmas candy in January?

#144 Ponzius Pilatus on 04.27.21 at 11:27 am

Beer for breakfast?
Took an early flight from the Munich Airport once.
The breakfast self serve had beer on tap.
Talking about sophistication.

#145 IHCTD9 on 04.27.21 at 11:31 am

#138 Handsome Ned on 04.27.21 at 10:24 am
I don’t always drink beer but when I do I drink Dos Equis. That is because they based “the most interesting man in the world” on myself.
___

“When in Rome, they do like he does”
“He can speak French, – in Russian”
“Mosquitos refuse to bite him. Out of respect”
“Cuba imports cigars from him.”
“When he drives a new car off the lot, it increases in value”

#146 IHCTD9 on 04.27.21 at 11:35 am

#1 Howard on 04.26.21 at 2:02 pm
The battle over Line 5 is heating up. The Michigan Governor, a key Biden ally in a crucial state, appears to be unphased by Canadian grovelling. Grab some popcorn.

Frustrated Canada presses White House to keep Great Lakes oil pipeline open

https://www.reuters.com/article/us-canada-pipeline-michigan-idUSKBN2CD0EA
___

What a $h!t show it would be if line 5 got shut down.

Trudeau better call the election soon. Maybe I’d better unload my gas guzzler too…

#147 Sean on 04.27.21 at 12:53 pm

#67 (The Totally Unbiased, Highly Intelligent, Rational Observer) voices a minority opinion that I think is correct. Why should any government increase taxes?

These days the main reason taxes exist is to punish political opponents – not to collect revenue.
Why should budget deficits be brought under control through either higher taxes or budget cuts, when governments can borrow and spend as much as they please?
I am not convinced taxes will be meaningfully raised – maybe a bit here and there to punish and score political points, but not enough to matter.

#148 Langford dude on 04.27.21 at 4:32 pm

I don’t get it? What about the theory that if all the world governments have had to print all this magical money, aren’t all the countries in the same boat? Ie: won’t this debt that all countries have put on their books just become the new normal? Kind of like the same way P/E ratios change and become the new acceptable? It’s not like all these countries (Canada included) have to pay back Mars or the mob.

#149 Tudval on 04.27.21 at 4:52 pm

I didn’t think BC-ers (or is it BC-ans) would take after Trump. I bet they didn’t. Only a very confused mind would not understand Trump’s problem with China is in fact with the CCP and not Chinese-Americans, duh! Not so in BC, so don’t put this one on Trump.