The bond

Why would you live with someone, marry them maybe, buy a house and have a kid or two together, yet not trust them with money?

Weird. But it’s common. Perhaps this is why four in ten unions fail. No wonder arguments about money are the greatest predictor of marriage breakdown. And lots of studies show that finances are the No.1 thing couples squabble over. Even more than her MIL. Or what to feed the pooch.

My experience is consistent. Almost always old wrinklie couples blend their finances. Young ones? Nope. They don’t get this trust/bond thing. At least not until years into the relationship, when it dawns on them the gig’s going to last. So they’d better have a plan.

Spouses with separately-managed TFSAs, registered retirement funds, investment accounts, LIRAs or matched employer pension plans, plus separate bank chequing and savings setups almost always suffer for it. Assets are duplicated. Overall risk is impossible to determine. There may be no balance, lousy diversification, poor returns or too much tax payable. For sure these folks won’t be doing income-splitting or harnessing the power of spousal RRSPs or investment loans.

All bad news. After all, spouses are an economic unit. Their lives and futures are intertwined, especially when you add in real estate, mortgages and (above all) children. How can you possibly plan out a stable retirement when the two of you don’t know what the other person owns, where those assets are, how they’re growing and what they’ll provide in the years to come? Answer: you can’t. So stop it.

In fact couples with a joint investment, savings and spending plan have one thing less to argue about. Then they can focus on fighting over crucial decisions, like the next retirement destination – the Galapagos or Paris, for example.

Here’s a plan. First ensure your RRSPs, both self-directed and the group ones at work, have your squeeze listed as the beneficiary (minor children don’t qualify as benes). For your TFSAs, you and he/her should have each other listed as ‘successor holders’. That means if one of you croaks the other person absorbs the TFSA into theirs, instead of just inheriting the assets. The kids’ RESP should be a family plan, and you both should be ‘subscribers’ to it. If grandparents want to set up an RESP for your spawn, don’t.  If they pass before the kids need the money the plan could be kaput. Have the oldies give you the cash to contribute.

Now, consider a joint non-registered investment account, potentially a key tool in retirement to generate income and reduce tax. It’s also called a ‘cash’ account in the investment business, and simply indicates it’s not a tax shelter (like an RRSP) and uncontrolled by government regulations restricting contributions or mandating withdrawals.

Why joint? Why not separate ones?

All of the above reasons, plus another biggie. If a spouse dies everything in their non-registered account is deemed to be sold on the day of death. And, yikes, all gains are taxed. There are no beneficiaries allowed for this kind of account, so the remaining partner may be impacted, despite spousal rollover provisions. But with a joint account all assets flow seamlessly into the hands of the survivor. No disposition. No tax threat. No probate. No delay. Just make sure it’s the right kind of cash account – called a JTWROS (joint with rights of survivorship).

This reason alone is compelling. If you love someone, surely you want them to have les stress and more security after you check out. So you need a will. You need registered accounts correctly set up. And you need this.

What about taxes and a joint non-reg account?

Here’s the law: taxes on investment gains are paid according to who originally contributed assets. Both spouses can transfer assets in kind from separate non-reg accounts into a joint one without tax being triggered. But growth is then taxed.

Here is how evil, bean-counting, no-personality accountant dudes put it:

Joint accounts cannot be used by you and your spouse to achieve income splitting. For example, you and your spouse cannot arbitrarily split the income 50% each, solely on the basis that it is a “joint” account. You also cannot choose a ratio to report on your respective tax returns each year to optimize your tax savings. Each spouse must report their share of income earned in a joint account in accordance with the proportion of funds they have contributed to the account.

However in the real world, as a couple saves money, buys assets, disposes of real estate one spouse may have paid down, moves employment savings around and accumulates it all in a joint non-registered account, meticulous record-keeping ain’t gonna happen. So the actual practice of most couples is to divide the taxable investment gains equally. Can that save taxes sometimes? You bet.

But joint accounts can save more than that.

Marital bliss through strategic asset allocation. What’s not to love?

About the picture: “I have occasionally contributed comment under ‘Murray the Vet’,” he writes. “Tess came into my clinic as a stray cattle dog, roughly a year of age. There is a provincial park a short walk away, Long Beach on Vancouver Island, in which we ran and walked countless miles. Full of attitude, she was the best companion and is sorely missed. Tess died 3 weeks ago. We were fortunate to have had her for over 14 years. As a dog lover, you can appreciate that I shed a tear writing this. On a positive note, these experiences reinforce the empathy I feel for clients in similar circumstances. I’ve read your blog from the beginning. Your continual efforts are very much appreciated.”

118 comments ↓

#1 Billy Buoy on 05.14.21 at 1:26 pm

I’m divorced and trust my ex so much her name is still on 2 checking accounts we held when married so I happen to pass before her, she can access the $ easily for my child without waiting for the estate to settle.

Luckily, it has never been a problem at all over the past 15 years!

#2 Brian Ripley on 05.14.21 at 1:33 pm

My Chart of Canadian Housing Prices compared in CAD to USD as well as my chart of Bitcoin, Gold Vancouver & Toronto Detached Houses in USD are up (April data):
http://www.chpc.biz/

Canadian housing purchased in USD are 20% cheaper.
Bitcoin and Vancouver & Toronto SFDs have built the left sides of their “Eiffel Towers”.
Gold remains flat.

Couples are edgy eh?

#3 polk on 05.14.21 at 1:40 pm

Garth has made the argument about a joint non-registered account many times. Every time he does, I think: I should do this. But then I realize that without keeping good records of where the money came from, I violate both the spirit and the letter of the tax law. I’m amazed that Garth keeps pushing this plan. Surely it will bite people.

I’m thinking that my spouse and I should have two joint accounts, one with money that came from me and one with money that came from them. Sure, we’ll pay more commission, but that seems a small price to pay.

#4 Faron on 05.14.21 at 1:41 pm

#133 DON on 05.14.21 at 12:49 pm

#128 Don Guillermo on 05.14.21 at 11:56 am
#126 DON on 05.14.21 at 11:32 am
Faron

Did you take the aspirin prior to the AZ shot?
****************************************

Best vaccine to get is the first one offered. AZ works.

*******************
Agreed Don G
But good to take precautions.

Go get ‘er. I expect I’ll be 100% before EOD today. Ask your doctor before trying the asprin thing if you are slated for AZ. Scientists bubble with hypotheses that aren’t to be accepted as truth until proven with data.

#135 crowdedelevatorfartz on 05.14.21 at 12:58 pm

With age comes wisdom. Luckily I get another crack at it in a couple months.

@The Jaguar

0.5ml of vaccine put me on my ass yet ~50kg of you only makes me feel pity at your fear encrusted life. Maybe work on your efficacy or try the other tack?

#5 Cheese on 05.14.21 at 1:53 pm

Got the Pfizer while working at the hospital, minimal effects. The second dose is where you see the more aggressive immune response. Plenty of rest and broths, protein, should be no problem.

#6 Dolce Vita on 05.14.21 at 1:57 pm

Money.

Root of all evil.

Can’t live without it. Couples need to live with it in common.

Sound advice.

——————–

On Sunday, travel quarantine restrictions lifted in Italia for all:

EU countries and the Schengen area

http://www.rainews.it/dl/rainews/articoli/Da-domenica-16-maggio-via-la-quarantena-a-chi-arriva-dai-Paesi-Ue-e-area-Schengen-51bebe3f-ae5a-4122-a7db-d8de8a7f1a72.html

I think Italia and others like Spain and Greece are rushing it.

Money.

#7 Immigrant man on 05.14.21 at 1:59 pm

Very useful article – I am going to save it. Thank you.
I find it a bit weird that you have to explicitly state your partner as the beneficiary to the TFSA, I thought that was the default setting. Need to change that! I only recently discovered spousal RRSP too (d’oh!).

Somewhat surprised that older Canadians actually share their finances… i knew the younger ones like to pay separately in a restaurant or whatnot – never understood that. But then again, I am an immigrant and where I come from you are supposed to bring all the money to the wife and smile while doing so. The society approves of the husband keeping a small sum in secret to himself for fun, but the majority of “the kill” goes to the wife.

#8 DON on 05.14.21 at 2:03 pm

@Faron

I believe I am slated for P or Mod.

I was just curious about folks taking the aspirin as a precaution prior to the AZ shot. Its been all over the news.

On the subject of the blog…our household finances are together. I am the data gatherer and business case builder, but I still have to present it to my spouse. 50/50. If we divorce she gets the dogs and I get the kids. That wasn’t negotiable. Trust is essential.

Rest!

#9 A Borrower Bee on 05.14.21 at 2:15 pm

The idea of a joint non-reg unfortunately falls apart when the spouses are in very different income brackets. If one spouse earns $60k and the other $150k through employment, one is in the 33.25% bracket, the other in the 43.4% bracket, at least in my province. That’s 10% of every gain that could be saved if the assets are in the name of the low-earning spouse. For eligible dividends, the difference is similar.

Good luck convincing CRA that growth in a joint account is solely attributable to the lower-earning spouse, especially if a HELOC on a jointly owned house/condo is used for leverage.

How much easier life would be with joint filings like in the U.S.

It does not ‘fall apart’ since tax can be paid by the person contributing, at their rate. The estate planning aspect alone, however, trumps any tax consideration. Don’t be diverted. – Garth

#10 Mark on 05.14.21 at 2:16 pm

Hey Garth, your conservatism is showing. Might want to tuck it back in, lest the liberal moisters form an angry mob and descend upon you.

#11 TurnerNation on 05.14.21 at 2:24 pm

What are wars fought over? Land. This WW3 is no exception.
Canada’s Wonderland is a prime piece of land for re-development.
Surrounded by other developments. What if you wanted to slowly force people away, such that the business eventually closed and the developers had their way? Yep I bet CV rules would do this, too

” In order to enjoy a day at Canada’s Wonderland this summer you will need to
Book your day in advance – visit by appt only ; Wear a mask the entire time ;Practice physical distancing
Download the covid app for contact tracing ; Likely forbidden to laugh or scream ”

——–
…Permanent rolling lockdowns in Kanada. As Usual.
What’s underneath the CNE grounds? More LAND. Ripe for condos imo.

.All major summer events, including CNE, Caribbean Carnival, cancelled again this year, city says [Toronto] (beta.cp24.com)

#12 Shakabra on 05.14.21 at 2:27 pm

I know a handful of married couples (around the 5 year mark) that have total separate finances.

I always found it very strange. If I can’t trust my wife with a shared bank account, then I can’t trust her at all … and what kind of marriage is that?!

You bang on with this one, Garth.

#13 ogdoad on 05.14.21 at 2:30 pm

Why would anybody get married and keep separate bank accounts? Its got “Ashley Maddison” written all over it. Face it, If you don’t have trust in the person you share a bed with (which would be quiet obvious – and you’re both thinking it, sorry!) seek help for you pain, or don’t get married just b/c your parents did and they’re giving you bad looks ’cause your still single! Come to terms with your withering soul. All 21 grams of it – Og’s Virtual Cry/Hug group can help! LOL!

Have a great weekend, Garth and Team!

Og

#14 Don Guillermo on 05.14.21 at 2:34 pm

#4 Faron on 05.14.21 at 1:41 pm
#133 DON on 05.14.21 at 12:49 pm

#128 Don Guillermo on 05.14.21 at 11:56 am
#126 DON on 05.14.21 at 11:32 am
Faron

Did you take the aspirin prior to the AZ shot?
****************************************

Best vaccine to get is the first one offered. AZ works.

*******************
Agreed Don G
But good to take precautions.

Go get ‘er. I expect I’ll be 100% before EOD today. Ask your doctor before trying the asprin thing if you are slated for AZ. Scientists bubble with hypotheses that aren’t to be accepted as truth until proven with data.

#135 crowdedelevatorfartz on 05.14.21 at 12:58 pm

With age comes wisdom. Luckily I get another crack at it in a couple months.

@The Jaguar

0.5ml of vaccine put me on my ass yet ~50kg of you only makes me feel pity at your fear encrusted life. Maybe work on your efficacy or try the other tack?
***************************************

I’ve been reading interesting studies regarding mixing the second shot with a different vaccine. It’s seems side effects may be more common but some early results also suggest it might actually add more protection and having flu type side effects means your immune system is doing it’s job. Looking forward to results from the long term studies. If positive this could really help speed things up.

I had flu like symptoms after my AZ shot. 24 hours later I felt like superman. Kudos to big Pharma!

#15 Bridging Finance on 05.14.21 at 2:43 pm

I hope one of you blog dogs got caught up in this scandal.

https://www.theglobeandmail.com/business/article-bridging-finance-took-emergency-cash-infusion-in-2020-did-not-tell/

Another GTA “get poor quick” scheme gone awry. It was brought to you by a very prominent GTA investment advisor whose last name I can’t spell!

He is not prominent. Just infamous. – Garth

#16 When Will They Raise Rates? on 05.14.21 at 2:46 pm

I guess that, despite the fact that what I posted is all over the news, it doesn’t fit the narrative here. Oops.

Irrelevant to the conversation. – Garth

#17 Jens on 05.14.21 at 2:49 pm

Wow Garth, I wouldn’t have expected a whole article in response to my request to explain your favourable position wrt. joint accounts. And you explained it with so much depth!

For the benefit of all readers, here’s what some of the gurus at financialwisdomforum.org suggested to me, in order to keep the taxman happy and allow us to sleep peacefully at night:
– estimate the contributions each spouse made to the account, and split cap gains and dividend taxes accordingly.
– as the percentages of contributions may change over time, revise them every couple of years.
– keep records of contributions made over the decades, and of how you arrived at your percentages.
– be consistent from year to year. (Apparently a biggie for the CRA. Inconsistencies raise suspicions on their part.)
– don’t try to deliberately game your financial situation in order to reduce taxes in a way that goes against the no-income-splitting rule. For instance, don’t attribute all the losing stocks to yourself and the biggest winners to your lower-income spouse.

And I would add, from my own experience: know the CRA’s attribution rules, but don’t spend weeks brooding over how to perfectly satisfy them. Rather, take your spouse out for a nice walk or whatever else the slimy little pathogen permits us.

#18 Paddy on 05.14.21 at 2:55 pm

Just curious how many people here scroll past TurnerNation’s comments when they come to it?
What’s his/her end game?
I’m getting a bit of an “anti vaxxer” vibe from this poster Garth, what do you think?

#19 ElGatoNerodeYVR on 05.14.21 at 2:56 pm

With 40%-50% divorce rate I can see why couples would want to wait until they are sure , especially if they come from single parent or mixed families.
Having separate accounts is just smart ,doesn’t mean you cannot work towards a common goal, it might cost more but peace of mind and not having to agree on everything investment every time leads to marriage bliss for a lot of people.
Joint spending accounts for household stuff and trips will do it for most couples.
Financial planning as a family group is possible but not likely IMHO desirable untill 10 years into the relationship.
All of this is driven by Emotions ,not Analytics , you will never win with facts or projections against feelings, ever.
I feel that my generation X was the transition one from typical conservative views on marriage and relationship to more modern ones ,from family forever as a unit to a family unit composed from 2 ( or more) individuals.
Just being pragmatic here , not advocating one way or the other ,I’ve done them both at different stages of my life and all I can say is that it is a personal choice based on individual circumstances .
As an outsider to family dynamics ,one simply cannot make an informed assessment of what is right.

#20 Dave on 05.14.21 at 3:06 pm

WHy is it we hear of so many acquaintances getting screwed in divorce? I would never marry again without a pre nup

#21 Humbled ◇ Broke on 05.14.21 at 3:07 pm

Dear Garth Person (can no longer assume your gender). What is your preferential pronoun?

You …. oh sorry, apologies…

ze,zhu,zha,or perhaps zit, …. have missed the big lurking thug in the domestic bliss room.

I regularly speak with young men in the trades. These guys get up every day pulling good wages while still risking their lives in essential work, while the rest of us cower in our masks behind the window curtains, perusing the Home Depot flyers for 2×4’s we can no longer afford.

These very intelligent, strategic, and quite tough operators gave already gone “John Galt”. Most laugh out loud when I ask them about finding Miss Right. Pathological dating culture, me-two risks, and the internet has stained any possibility of any realistic enduring partner ships. One fellow quipped “you hope for a partner, but end up with a parasite”. Predictably marriage, house-formation, and positive demographics have thus collapsed. Young men have seen how divorce and the law has affected their parents, and even grand parent’s relationships, and how in two generations men have gone from patriarchy to pariah. Message received. We boys got the memo and have quietly made permanent adjustments. Hence many socioligical studies bear this marriage extinction trend out.

Covid is just one more revealing cultural trauma, and the future that many young women have ordered is no longer in stock. The social justice warriors running the courts through no fault legal rulings renders economic suicide for males. This means females initiate 80% of separation filings. It is not a question of who is at fault (usually both) its that on a whim one party can pull the life raft mid-air and crash the plane. Young men are rational creatures, if you are gonna sky jump and four out of ten times you will hit the ground without a parachute, the survuval odds are dire. It’s 4 times for first marriages, but jumps to 7 failures out of ten if it is a second or third marriage. Marriage used to be primarily a reproductive and economic strategy. Trudeau 1 started this bonfire and Trudeau 2 will complete it. The unforseen side effects are now in full culture wars flowering.

Romantic marriage is dead in the west having outlived its benefits. Practically speaking romance only lasts as long as the flower bouquet. Ask any 50 year or older male. Mutually and reciprocity is the glue of marriage. These core behaviors have gone rancid in our current hook-up culture.

Modern marriage is now a burdensome three some. You, spouse and that diabolical pervert the government. T2 and his ilk always interfering like that psychopathic mother-in -law but without ever bringing any cookies.

I am so happy I am wrinkled and spent, not having to see where this zur, ze, zaa, zoo shyte show is gonna go. Try building a house with fines for mis- addressing your non-binary stud finder.

Okay kids, its your turn to blow the planet up.

#22 Andrewski on 05.14.21 at 3:14 pm

I had a joint investment account with my Dad, set up as a JTWROS. When my Dad died there was no problem with the account becoming mine, with zero tax implications. A couple of years later I added my better half on the account, again as a JTWROS, as Garth has recommended.

#23 Stoph on 05.14.21 at 3:22 pm

#7 Immigrant man on 05.14.21 at 1:59 pm
Very useful article – I am going to save it. Thank you.
I find it a bit weird that you have to explicitly state your partner as the beneficiary to the TFSA, I thought that was the default setting. Need to change that! I only recently discovered spousal RRSP too (d’oh!).

—————————————————————–

In the case of TFSA, add your spouse as ‘successor holder’, not as beneficiary. (As Garth stated in the blog post).

#24 Editrix on 05.14.21 at 3:23 pm

What about couples where there is an age difference and one is already pulling out of a RRIF and the other is a few years away from retirement?

#25 Sail Away on 05.14.21 at 3:25 pm

Use finance night and tax night as fun romantic home-dates with wine and good takeout.

My wife and I spend an enjoyable hour every month or so going through all finance worksheets, evaluating investment performance, planning next steps, and making sure to transfer birthday/university cash for the 18 nephews and nieces.

Everything is combined and we leverage every possible tax-avoidance strategy.

Such fun. Always puts us in a good mood. She’s more ETF investing, I’m more cowboy. Surprisingly similar results over the long term.

#26 Flop... on 05.14.21 at 3:28 pm

Just got back from my government job interview.

Man, they asked some weird questions, below is a sample, and I was steadfast in my answers.

Q) Do you know anyone presently or in the past that has worked for the government?

A) Yes, Garth Turner.
( Could have said wife, but meh…)

Q) Have you ever had a problem with someone, and if so how did you resolve the issue.

A) Yes, Garth Turner, he stated that it was his blog and his rules, I said nothing.

Q) Has anyone working for the government ever upset you?

A) Yes, Stephen Harper, when he got rid of Garth Turner, but he did also sign off on my citizenship, so we’ll call it a draw.

Q) If you came to work thinking you were going to do one task and that task was unavailable to be completed that day, what would you do?

A) Go home, put my feet up and read Garth Turner’s daily blog.

I think I nailed the interview…

M46BC

#27 Oracle of Ottawa on 05.14.21 at 3:33 pm

My ex and I shared all bank accounts. When we met, we both owned houses and sold them and put the money into a joint account. My house was almost paid off, so I contributed much more. After 5 years everything is split 50/50 regardless of how much each person puts in. Did I mention my “ex” which means we separated. Won’t do that again. Maybe if you live in a fairy tale world.

#28 Sail Away on 05.14.21 at 3:37 pm

#6 Dolce Vita on 05.14.21 at 1:57 pm

Money.

Root of all evil.

———-

Sigh… no, it’s the ‘love of money’ that is the root of all evil.

Money itself is just a tool, much like an air-cooled, belt-fed, swivel mounted .50 cal.

Handle your tools carefully and responsibly.

#29 Wrk.dover on 05.14.21 at 3:46 pm

#108 westcdn on 05.14.21 at 6:48 am

Hate soldering….

Don’t introduce the solder to the pipe joint until the torch flame turns green.

#30 Prenup on 05.14.21 at 3:49 pm

I’m approaching 50, and am close to having all my retirement ducks in a row. Mortgage free, and and investment holdings just a few working years shy of being able to carry me forward.

I’m also dating someone who has a negative financial net worth, and is likely a year away from getting to 0.00 financial net worth.

Am I blending finances? Not for a loooong time.
I need to protect my own retirement.

#31 Oakville Rocks! on 05.14.21 at 3:51 pm

Sorry for your loss Murray the Vet. Lovely dog and lovely words. I am sure you are an excellent vet.
Long Beach is a fantastic part of Canada. I am envious.. but I also love Oakville.

WRT the AZ shot, I would love to know what Don G got that made him feel like superman 24 hrs later. I had flu like symptoms for a day & a half and then back to normal. Everything I read said avoid taking anything prior to the shot – let your body deal with it as it should without help. Like a lot of you, I am wondering what I am getting next (in 11 – 13 weeks) and whether it will be effective if it is a different vaccine.

Being single also has its advantages. I believe some people are better off single.

Some of you guys (Humble/Broke) should really talk to someone. It is possible to come though a divorce and be happy again. Living life as bitter as you write cannot be good for you – talk to someone.

Lastly, I think Garth is right, if you are not ready to share your finances with someone, this is a sign that you are not ready to be married to that person.

#32 Don Guillermo on 05.14.21 at 4:05 pm

#31 Oakville Rocks! on 05.14.21 at 3:51 pm

WRT the AZ shot, I would love to know what Don G got that made him feel like superman
***********************************
I may have been a couple of Pacificos ;-)

#33 Don Guillermo on 05.14.21 at 4:06 pm

It may ….

#34 Ponzius Pilatus on 05.14.21 at 4:09 pm

Here’s Ponzie’s first law of inverse relationships:
The length of a marriage is inversely related to the amount of money spent on the wedding.

#35 Ponzius Pilatus on 05.14.21 at 4:12 pm

My spouse ran out of TFSA room.
I have some left.
So I gave it to her.
Just added another 5 year to my marriage.
It’s all about money.

#36 SoggyShorts on 05.14.21 at 4:16 pm

What about joint investment accounts where the money comes from…joint checking accounts?

When my wife puts $X into our joint checking account and I put $Y into it then who’s to say which money goes where?
What if the rent that comes out is from “my share” and the transfer to questrade came from “her share”
or 50-50?

I don’t see how this could possibly be tracked so couldn’t you decide?

#37 IHCTD9 on 05.14.21 at 4:16 pm

#19 ElGatoNerodeYVR on 05.14.21 at 2:56 pm

With 40%-50% divorce rate I can see why couples would want to wait until they are sure , especially if they come from single parent or mixed families…
—- –

Starting with the Millennials, the divorce rate has been dropping. Less folks are getting married, but among those that do, they are holding it together better than the Boomers and Gen X.

There is also a trend among married Mils to be well educated and gainfully employed. I expect that Men are driving this, because for the first time in recorded history, well educated and high earning Women are now more likely to be married than their low educated/earning peers. Millennial Men seem to have dispensed with the “bread winner complex”.

IMHO, it’s the evolutionary driven hypergamy in Women combined with the social evolutionary requirements of modern living matching these folks up. Women still don’t want to marry down, and Men realize the cost benefit of a single bread winner role is a loser these days. Besides, the stigma of the wife making more than hubby is just about gone.

Given the above, it would be interesting to see how these “power couples” handle their finances.

#38 Dr V on 05.14.21 at 4:17 pm

4 Faron – don’t mess with the Jaguar!

https://www.youtube.com/watch?v=7GEQwO_cS9w&ab_channel=NationalGeographic

Yikes!

#39 BillyBob on 05.14.21 at 4:26 pm

#26 Flop… on 05.14.21 at 3:28 pm
Just got back from my government job interview.

Man, they asked some weird questions, below is a sample, and I was steadfast in my answers.

Q) Do you know anyone presently or in the past that has worked for the government?

A) Yes, Garth Turner.
( Could have said wife, but meh…)

Q) Have you ever had a problem with someone, and if so how did you resolve the issue.

A) Yes, Garth Turner, he stated that it was his blog and his rules, I said nothing.

Q) Has anyone working for the government ever upset you?

A) Yes, Stephen Harper, when he got rid of Garth Turner, but he did also sign off on my citizenship, so we’ll call it a draw.

Q) If you came to work thinking you were going to do one task and that task was unavailable to be completed that day, what would you do?

A) Go home, put my feet up and read Garth Turner’s daily blog.

I think I nailed the interview…

M46BC

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

HAhahahah! The mental image of our resident Tasmanian all-around nice bloke, earnestly and repeatedly invoking Garth’s name with awe and reverence…too funny!

Nice one Flop.

Seriously, best of luck and hope you get the job – if you want it.

#40 Ballingsford on 05.14.21 at 4:30 pm

That’s risky with 50 + of all marriages failing. Sure, joint accounts for household expenses and beneficiaries/succession holders for TFSAs and RRSPs.

You taught us to lessen our risk by going 60/40. Joint in everything is too risky, like going 100% in on stocks.

#41 AM in MN on 05.14.21 at 4:30 pm

It makes no sense to combine finances unless you are married in the traditional sense, i.e. one man, one woman, in a lifetime exclusive (monogamous) commitment.

That’s becoming more rare these days, although most of the laws and common law still assume that “marriage” actually means that.

Without, or until, such a commitment, it’s easier to undo things if you haven’t joined finances, and easier for men to protect themselves from the feminist legal system.

Without the religious aspect of it, I’m not sure why anyone would sign up for it.

As an FYI, if you get married in a more traditional Catholic Parish, you will be required to go through pre-marriage classes where a whole plethora of future life planning discussions will need to take place (before the wedding!), and it is assumed that everything is shared from the moment your marriage is blessed.

Still plenty of arguments over money when there isn’t enough of it, but over time most couples who stay married for life figure things out and work together to maximize wealth creation.

Over time the spousal laws will change with the majority as “marriage” in the true meaning of the word becomes more confined to observant Christians and Jews. This also doesn’t bode well for the future of the nation’s finances as more and more women with children marry the government to look after them, as well as them and the many childless older folks expect to be looked after in their old age.

#42 alexinvestor on 05.14.21 at 4:31 pm

What’s to stop someone from giving their spouse the money to fund the joint account in whatever proportion is needed to achieve the most efficient tax income split ?

Ethics. Gifted money is not taxable to the receiving spouse but any investment income generated is deemed to be earned by the giving spouse for tax purposes. – Garth

#43 Indigirl on 05.14.21 at 4:38 pm

Great post. In an ideal world you are right about everything being joint, but in real life, we don’t always love who is good for us – why make bad decisions worse by making things joint.

Also, I’d love to see a column or two on blended families. Everything joint will generally screw over the kids of the first one who died.

#44 Ponzius Pilatus on 05.14.21 at 4:44 pm

Sometimes, I cannot hold back a little “Schadenfreude” when I read stories like this:
————————
NHL: Eugene Melnyk involved in lawsuit against superyacht …https://ca.news.yahoo.com › eugene-melnyk-feuded-wit…
6 hours ago — Eugene Melnyk feuded with ‘odorous, ill-tempered’ superyacht captain … In one example cited, Melnyk requested the boat travel through

#45 BillyBob on 05.14.21 at 4:50 pm

#4 Faron on 05.14.21 at 1:41 pm

@The Jaguar

0.5ml of vaccine put me on my ass yet ~50kg of you only makes me feel pity at your fear encrusted life. Maybe work on your efficacy or try the other tack?

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

??

What does this even mean?

Actually, who cares. What an odd little outburst. Tourettes? Just FYI we don’t even know what triggers you anymore.

*shrug emoji here*

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

Great column today Garth. Yep, the BillyBobs actually do some of things you say not to – separate investment accounts, savings account, but joint account for shared expenses. But that’s everything to do with multiple tax jurisdictions, currencies, investment rules etc and nothing to do with trust nor lack thereof. All is shared freely and generously. Life’s too short.

So, not much applicable for me, but the point about deemed disposition of investments on death gave me pause for thought. Canadian laws don’t apply but I would imagine they’re similar most places. On the off-chance that I’m not immortal I definitely want the whole lot to go to her and other beneficiaries, not the tax man.

I will put some questions to my Irish accountant. (Everyone should have one. Guy’s a shark, right down to the dead eyes.)

Gracias!

#46 Sail Away on 05.14.21 at 4:56 pm

One reason I enjoy investing is because it’s somewhat similar to hunting, fishing and gathering. The natural world works at its own rhythm and pace, and to be successful, you need to become familiar over time by careful study, learning the game’s movement and learning from mistakes. You’ll still fail often, but when you learn something new, it’s not really a failure.

So find something that works that can be counted on as backup, then explore a new technique… and repeat… forever.

Of course, roadhunters are often successful as well with no deep knowledge, so never completely discount the Gamestop Redditers and always be willing to dip a toe…

#47 Mikey likes it on 05.14.21 at 4:57 pm

Why not set up two joint cash accounts…at two different financial institutions?

Put Hubby’s money in one joint account and wifey’s money in the other.

That provides for joint account status and the survivor benefit while still keeping the record keeping separate for taxation purposes.

Is there a problem with this plan?

#48 Sail Away on 05.14.21 at 4:59 pm

#41 Ponzius Pilatus on 05.14.21 at 4:44 pm
Sometimes, I cannot hold back a little “Schadenfreude” when I read stories like this:
————————
NHL: Eugene Melnyk involved in lawsuit against superyacht …https://ca.news.yahoo.com › eugene-melnyk-feuded-wit…
6 hours ago — Eugene Melnyk feuded with ‘odorous, ill-tempered’ superyacht captain … In one example cited, Melnyk requested the boat travel through

———–

Melnyk’s a weenie. He thought he wanted to sail but got worked up when the ocean acted like an ocean.

That’s the natural world, you weenie.

#49 T-Rev on 05.14.21 at 5:03 pm

Good advice for all investment accounts. Terrible advice for checking accounts. I’ve survived 15 years of marriage by always having separate accounts. We combine on all the things mentioned above, but her paychecks go to her, mine to me. We both understand the expectations of who pays for what in terms of family operating costs, and what the investment contribution from each are as well. My wife took six years off to raise babies, and we didn’t combine accounts then either- i’d simply hand her a wad of cash each month, and after she bought groceries, gas, diapers, and other necessities, what she did with any leftover was her business. God bless her, she’s not the type to save when she could spend,so this arrangement has always ensured that we never fought over money. I save, invest, and look after operating costs of the house and vehicles, she takes care of household discretionary and all the recreational and contributes a set amount to me to invest in our joint portfolios each month.

No fighting. No stress.

#50 Faron on 05.14.21 at 5:05 pm

#32 Don Guillermo on 05.14.21 at 4:05 pm

#31 Oakville Rocks! on 05.14.21 at 3:51 pm

***********************************
It may have been a couple of Pacificos ;-)

Dos ballenas should do it.

Oregon Trail Brewery sells mini kegs in something called a party pig. Beer is contained in a bladder within a plastic pressure vessel. The whole thing is under pressure so the beer doesn’t go flat over time. Kind of the boxed wine for high quality beer — they brew a fantastic Wit. The party pig fuelled many a canoe trip/surf camp out.

#38 Dr V on 05.14.21 at 4:17 pm

4 Faron – don’t mess with the Jaguar!

Yeah, that was a little harsh earlier. But, if she picks at me, I’ll pick back.

#51 Ponzius Pilatus on 05.14.21 at 5:08 pm

#42 Billy Bob
I will put some questions to my Irish accountant. (Everyone should have one. Guy’s a shark, right down to the dead eyes.)
———————
Can’t be Irish.
Remember when Regan and Mulroney were singing:
“When Irish eyes are smiling”
But otherwise, you’re right about the Irish boys.
Not big, but tough as nails.
Witnessed a bar fight in Galway, Ireland.
Lived to talk about it.

#52 IHCTD9 on 05.14.21 at 5:17 pm

#38 Dr V on 05.14.21 at 4:17 pm
4 Faron – don’t mess with the Jaguar!

https://www.youtube.com/watch?v=7GEQwO_cS9w&ab_channel=NationalGeographic

Yikes!
———

That’s why I love cats, they always know where the jugular is.

Allow me, Mr T – to indulge the dogs in a rather, unpalatable, yet true story:

A bud at work whose parents lived in an old house unfortunately became the abode of a family of black rats. These are smart little buggers. They would not touch the traps set out for them. He actually set up his phone in their cellar, and watched as the little rodents ate all the bait laid around the traps, but did not go near the traps themselves. He sent me a YouTube vid of a rat on night vision cam, dragging a foot long stick up to a trap, springing it, and then gulping down the bait. Not just once, but night after night. Tough to catch.

The solution? Coworker brought over his cat. 2 nights and they were all dead meat. Cats aren’t too smart, but anyone who’s owned one will tell you that they are killing machines. They even share occasionally. A dead mouse, half a bunny, maybe a frog. They feel compelled to look after their humans.

Cats are Man’s best friend (if Man owns old house out in the sticks).

#53 Faron on 05.14.21 at 5:21 pm

#45 BillyBob on 05.14.21 at 4:50 pm

You’re smart enough to put the pieces together, so I’m not going to hold your hand.

Enjoy the +20 C on this miserable hellhole of an island that you seem to have gravitated back to. It’s just godawful around here lately. I might have to go sailing Sunday after spending Saturday on the trails. Woe is me.

#54 anon on 05.14.21 at 5:36 pm

It is just a theory to most blog dogs here (until it happens), what Garth said above, but I lived it through, I wish I did not. However, if it was not Garth, I would be still dealing with crap. Just because of him, the only thing I needed to do was doing nothing.

Garth, A BIG Thank you…

PS: There is also JGBRS (some financial institutions in Canada offers – ie. RBC)

#55 Retired in Kelowna on 05.14.21 at 5:39 pm

You are right on with this one Garth. My wife and I have followed this path for 36 years and it has worked out wonderfully. One Non Registered Joint Acct, two self directed RRSP’s(now RRIF’s) and two TFSA’s with each other as the beneficiary. We have never had a argument over Money. Trust is the key.

#56 Cottagers STAY THE HELL AWAY! on 05.14.21 at 5:55 pm

Don’t even think of coming to cottage country this weekend, all you slimy little pathogens from Oakville!

STAY AWAY!

#57 SoggyShorts on 05.14.21 at 6:00 pm

#49 T-Rev on 05.14.21 at 5:03 pm
Terrible advice for checking accounts. I’ve survived 15 years of marriage by always having separate accounts.
*********************
That’s just your situation.
Other relationships have 2 people without conflicting spending habits.
We’ve been together for almost 20 years and never have problems coming from our combined finances.

The closest we’ve come to irritation at the other’s spending was my fly-in fishing trips which were instantly smoothed over with the spa bookings I made for her.

By far the greatest investment decision I ever made was finding a partner who was on the same page for financial goals, and I wasn’t even looking for that.

#58 Billy Bouy's Ex on 05.14.21 at 6:09 pm

#1 Billy Buoy on 05.14.21 at 1:26 pm
I’m divorced and trust my ex so much her name is still on 2 checking accounts we held when married so I happen to pass before her, she can access the $ easily for my child without waiting for the estate to settle.

Luckily, it has never been a problem at all over the past 15 years!
/////////////

It’s all in the timing. It ain’t over till I sung.

#59 Cici on 05.14.21 at 6:09 pm

#5 Cheese on 05.14.21 at 1:53 pm
Got the Pfizer while working at the hospital, minimal effects. The second dose is where you see the more aggressive immune response. Plenty of rest and broths, protein, should be no problem.
___________________________________________

Thanks Cheese, good to know!

And about yesterday, keep the good faith. Lots of us (probably most of us, in fact) are not pulling in that kind of annual salary. I think the point was not to make us feel bad, but to show us that some of the country’s brightest are choosing not to get sucked in to the RE vortex. Or perhaps he was just trying to show us that housing isn’t the only game in town, and that freedom, fun, enjoyment and mobility are also worth something.

Personally, I think people who make the best of whatever they’ve got and take pride in everything they have and do are wealthier than those who are only asset rich.

#60 Barb on 05.14.21 at 6:16 pm

Murray, condolences on the loss of beautiful Tess…
it hurts for a long long time.
She was fortunate to have had your love for so long.

#61 espressobob on 05.14.21 at 6:17 pm

Cats are funny creatures. Their trust can take a few years to win over. Once you do, with a great deal of patience, these strange entities seemingly, have you trained.

Funny how that works…

#62 Chameleon on 05.14.21 at 6:18 pm

For those who dress up their dogs, do them a favour – make the outfits aspirational. Like these:

https://i.ebayimg.com/images/g/6QEAAOSwPc1dyi-B/s-l400.jpg

https://st.depositphotos.com/1806346/2401/i/950/depositphotos_24014165-stock-photo-dog-dressed-like-a-cat.jpg

Worse case, even this works:

https://purewows3.imgix.net/images/articles/2020_10/black_cat_dog_halloween_costume.png?auto=format,compress&cs=strip

#63 Survivor on 05.14.21 at 6:20 pm

Sat in traffic for an hour today. Hell.

You want everyone to be vaxxed?

They have been! …with WFH against WFW-21, and all the variants like WFW-22, WFW-23.

BRING ON THE UBI, BABY!

#64 Cici on 05.14.21 at 6:23 pm

#18 Paddy

I scroll past that non-sensical yet sensationalistic rubbish. It hurts my eyes and my brain.

I think it’s more than just about being an “anti-vaxxer”… perhaps “paranoid schizophrenic” better fits the bill? Beats me, but then again, I really don’t want to know!

#65 Grandma Sue on 05.14.21 at 6:24 pm

Well, for one, divorce rates are higher than ever. Nobody is ever blindly “all in” anymore… unless of course MSM suggests its a good idea and for your benefit ;)

#66 Alberta Ed on 05.14.21 at 6:25 pm

Great advice. Also get your will(s) in order, too. Use a lawyer.

#67 kommykim on 05.14.21 at 6:28 pm

You may, or may not, be able to designate your spouse as a TFSA successor holder depending on where you live in Canada:
“In provinces or territories that recognize TFSA beneficiary designation, the survivor can be designated as a successor holder in the TFSA contract or in the deceased holder’s will.”

More here:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/death-a-tfsa-holder/successor-holder.html

#68 Kim Voll on 05.14.21 at 6:29 pm

Dolce Vita:

“Money the root of all evil”

Incorrect, it is “the love of Money is the root of all evil”, not money itself.

#69 the Jaguar on 05.14.21 at 6:37 pm

@The Jaguar
0.5ml of vaccine put me on my ass yet ~50kg of you only makes me feel pity at your fear encrusted life. Maybe work on your efficacy or try the other tack? +++

What on earth does it mean? “Fear Encrusted”? Must be some new chicken sandwich at the drive thru. Great name for a racehorse, though.

As far as my ‘Efficacy’ is concerned it couldn’t be better, whichever distinction is applied as I got the Pfizer shot like Garth a while back. No impact on my usual robust self. The truth is, I’m having a stellar year. Who’d have thunk it the middle of a pandemic, but it’s true. For the time being at least, I’ve got the world on a string. Such an exciting time to be alive.

https://www.youtube.com/watch?v=jG6wvF_1g_o

About today’s dog photo. What an amazing shot and beautiful dog. Tess in her element. I am not religious, but there is something ‘holy’ about her. Thank you for giving her such a beautiful life, Murray the Vet…

#70 Nonplused on 05.14.21 at 6:49 pm

Great advice for Matt and other young people for sure, but I have children from 2 marriages so my will is a little more complicated than that.

However we are making every effort to stuff my wife’s RRSP and TFSA, plus she gets the house which is paid for, so she should be ok. She can keep it or sell it at her discretion.

The only “joint” account we have is our Costco card, but it is surprising how much of the budget flows through that (2% cash back after all). But we are very open about our finances. I know exactly how much money she has and where it’s at. I do her taxes and calculate for her the optimal RRSP contribution each year (I don’t bother with the 17% bracket, instead if there is that much money available it goes into her TFSA, maybe for use the following years at higher tax brackets). We have a convo once a year at tax time where we lay it all on the table and see where it is going.

So this advice is great, but it isn’t “one size fits all”. There may be some duplication of assets but we both have 60/40’s, so I am not sure it matters. If we had a single account it would just be larger.

Some would say I should leave everything to my wife and then have her sign a will that includes my other children, but wills can be changed and she won’t need that much money. So the way it’s structured is she gets the house plus she has her own RRSP and TFSA money, but my children (including hers) will get a nice boost maybe allowing them to buy a house without it bankrupting them. Joy all around. I should probably hire a food taster.

You could consider it that I am pre-willing money to my wife by stuffing her RRSP and TFSA. Sometimes that is my money going in. But the tax break benefits us both so it makes sense to do.

#71 Trojan House on 05.14.21 at 6:50 pm

This could open a can of worms in Ontario:

“COVID-related temporary layoff is constructive dismissal, says Ontario Superior Court ruling”

https://www.lawtimesnews.com/practice-areas/labour-and-employment/covid-related-temporary-layoff-is-constructive-dismissal-says-ontario-superior-court-ruling/355485

#72 Cici on 05.14.21 at 6:51 pm

#26 Flop

Hah, hah! Very cute and witty.

Good luck, I’m sure you’ll get the position ;-)

#73 Don Guillermo on 05.14.21 at 6:53 pm

#50 Faron on 05.14.21 at 5:05 pm
#32 Don Guillermo on 05.14.21 at 4:05 pm

#31 Oakville Rocks! on 05.14.21 at 3:51 pm

***********************************
It may have been a couple of Pacificos ;-)

Dos ballenas should do it
*********************************
I’m impressed you know Ballenas. Pacifico specific. Not available in many parts of Mexico and extremely popular with young Mazatlecos at the beach. 2 for $56 Pesos at OXXO. Well done!

https://www.debate.com.mx/__export/1416866817257/sites/debate/img/data/2014/08/75301695.jpg_673822677.jpg

I prefer Tres Islas myself. Little more expensive but great beers.

https://untappd.com/w/cerveceria-tres-islas/248731

#74 BlogDog123 on 05.14.21 at 6:54 pm

Benefit of designating a successor holder:

1. Your spouse dies, then you get to hold their account and its accumulated TFSA room. And let it grow and do trades, etc… A single person or beneficiary does not get this benefit.

Benefit of only designating beneficiary:
1. Upon your spouse’s death, the account will be closed and you’re handed the money. Not as exciting, flexible or advantageous of having “more tax sheltering wealth” as now holding the your dead spouse’s account until you die.

Some provinces like Quebec don’t allow successor holder i think…

#75 BillyBob on 05.14.21 at 6:59 pm

#53 Faron on 05.14.21 at 5:21 pm
#45 BillyBob on 05.14.21 at 4:50 pm

You’re smart enough to put the pieces together, so I’m not going to hold your hand.

Enjoy the +20 C on this miserable hellhole of an island that you seem to have gravitated back to. It’s just godawful around here lately. I might have to go sailing Sunday after spending Saturday on the trails. Woe is me.

————————————

I may be smart but I’m not fluent in imbecile. I’ll just have to live with not knowing.

And you’re right, it is nice today in Vic. But don’t exaggerate, it’s 16C currently and hasn’t cracked 20 in the past 2 weeks.

Perhaps you, Stan and I could grab a Coors Lite?

#76 the view out west on 05.14.21 at 6:59 pm

If you give your spouse enough rope, they will hang you with it

#77 crowdedelevatorfartz on 05.14.21 at 7:00 pm

@#26 Floppie

“Govt interview questions and Crowdie answers”

Q) Do you know anyone presently or in the past that has worked for the government?

A) No. No one actually works in govt.

Q) Have you ever had a problem with someone, and if so how did you resolve the issue.

A) Yes. Pretend I didnt hear them and go for coffee break.

Q) Has anyone working for the government ever upset you?

A) No. As I stated before. No one actually works in govt.

Q) If you came to work thinking you were going to do one task and that task was unavailable to be completed that day, what would you do?

A) I would not worry. I would blend in with every other person on the govt payroll.

#78 Sail Away on 05.14.21 at 7:05 pm

#64 Cici on 05.14.21 at 6:23 pm
#18 Paddy

I scroll past that non-sensical yet sensationalistic rubbish. It hurts my eyes and my brain.

I think it’s more than just about being an “anti-vaxxer”… perhaps “paranoid schizophrenic” better fits the bill? Beats me, but then again, I really don’t want to know!

———–

Personally, I think people who can appreciate the wonderfully diverse range of human expression and express nonjudgmental kindness are wealthier than those who are only asset rich.

#79 Left GTA on 05.14.21 at 7:09 pm

We just opened our first Joint non reg acct with BMO and his large tax return I put into TD stock and part of the cash portion of my pension commute I put into CPD. I guess we just each claim the dividends for the stock that is ours. What I don’t know how to do yet thou is drip the dividends.

#80 crowdedelevatorfartz on 05.14.21 at 7:09 pm

@#68 Voll

“Incorrect, it is “the love of Money is the root of all evil”, not money itself.”

+++

Incorrect.
It is the LACK of money that is the root of all evil.

#81 crossbordershopper on 05.14.21 at 7:12 pm

ethnics divorce much less. you go home with the one that you came to the dance with. Peoples words are worth nothing these days ive seen. A comittment is a committment. I dont do business with divorced people, if he would cheat on his wife, he wouldnt think twice about cheating me on a business deal. Just my opinion.

#82 espressobob on 05.14.21 at 7:12 pm

For the minority of individuals still sitting on the fence, get over those considerations you have, and get vaccinated when the earliest opportunity presents itself.

THANK-YOU.

The majority of us want our lives back. Thank you again!

#83 Moses71 on 05.14.21 at 7:18 pm

The Macedonians marry (the mid-20th century, anyways) where the husband knows he’ll be putting all assets under the wife’s name. So their marriages are based on trust, on the man’s side, anyways. But people marry for different reasons lol. Their divorce rate is low still

#84 Nonplused on 05.14.21 at 7:44 pm

#34 Ponzius Pilatus on 05.14.21 at 4:09 pm
Here’s Ponzie’s first law of inverse relationships:
The length of a marriage is inversely related to the amount of money spent on the wedding.

————————————-

That’s good. But add -x^2 where x = mothers interfering (on both sides).

Dads don’t count because they are generally happy if all they have to do is pick up the bar tab and don’t have to do any speeches.

#85 A Believer on 05.14.21 at 7:48 pm

Good Advice…but second marriages are different as you age.There are usually children, on both sides who are watching the money.
We found this worked well. A joint bank account and credit card for household expenditures and travel. But each person to have their own separate bank account, credit card and investment accounts for personal use. House in Tenants in Common title with life lease. Very careful marriage agreements prior to marriage. No worries!

#86 Faron on 05.14.21 at 7:48 pm

#75 BillyBob on 05.14.21 at 6:59 pm

And you’re right, it is nice today in Vic. But don’t exaggerate, it’s 16C currently and hasn’t cracked 20 in the past 2 weeks.

For the love of Pete ya sourpuss check your YYJ METAR or go here like the rest of us:

https://weather.gc.ca/past_conditions/index_e.html?station=yyj

For those afraid to click a link these are the measurements:

Today: 14:00 Mainly Sunny 19 (19.4)
Yesterday: 17:00 Mainly Sunny 20 (20.4)

Sorry, off by 0.6 C. Brrrrr. Lemme guess, it’s raining where you are too? If you are going to play superiority, do your basic fact checking.

Perhaps you, Stan and I could grab a Coors Lite?

Who’s Stan? My dead cat? No thanks. He’s well rotted by now. Wait, are you holding/not holding (wink wink, nod nod, not really but kinda, just kidding) a potential professional connection over my head… again? Wow. Did I hurt you that badly?

#87 SOS on 05.14.21 at 8:04 pm

#64 Cici

More like “inquiring mind”.

#88 Wrk.dover on 05.14.21 at 8:11 pm

#34 Ponzius Pilatus on 05.14.21 at 4:09 pm
Here’s Ponzie’s first law of inverse relationships:
The length of a marriage is inversely related to the amount of money spent on the wedding.

_______________________________________

Seaside ceremony followed by full on all in seafood chowder, salad bar, large assortment of home cooked fruit and berry pies for 53 guests in an historic inn, followed by a live band for yet more revellers at a legion hall. Capped with an almost all-nighter crazy dance party for the campers in the yard from afar. $1500 in 1981 dollars. Still rockin’ it.

And yes, she married down.

#89 Jens on 05.14.21 at 8:19 pm

#36 SoggyShorts on 05.14.21 at 4:16 pm

What if the rent that comes out is from “my share” and the transfer to questrade came from “her share”
or 50-50?
—- –
From what the FinancialWisdomForum gurus told me, it’s perfectly acceptable in CRA’s eyes (and a smart tax-saving move for you) if the high-income spouse pays for household expenses, the new car etc., and the low-income spouse invests all their income. Then all gains and dividends will be attributed to that spouse at their lower tax rate. Just document clearly that you did so.

#90 Dr V on 05.14.21 at 8:42 pm

75 billy bob

Duncan 23
Sproat lake 24

Port Renfrew 13
Comox 14
Pt mcneill 11

Time 1740

#91 Stahom on 05.14.21 at 8:44 pm

Simple plan: buy low, sell high, marry a gal that earns big cake. Kids arrived and I tapped out of the work force and and let her do her thang. Advisor while the kids were in grade school then then took on the whole wad in a ETF portfolio as per this blog and Viola! Still important to live within a budget, she gets the Lexus, I’m okay with the Toyota.

Eat well at home, take vacations, get to know kids by actually living with them. She asks for a financial update from time to time and funds for reno stuff, and I’m glad to say “for sure”.

Only rule: if she wants to buy a boat, we need to talk.

Trust? For all purposes she is penniless, everything in my name as per rock star accountants and lawyers. Should work, I quite like her. She gets to quit working whenever she wants.

#92 Ponzius Pilatus on 05.14.21 at 8:53 pm

Here in BC going into the weekend with infections now below 500 per day.
3 or 4 death average per day.
I hope, we go steady as she goes.
Not the craziness that’s going on in the States.
Better wait a month, and do laddered openings.
Only fools rush in.

#93 Love_The_Cottage on 05.14.21 at 8:55 pm

#56 Cottagers STAY THE HELL AWAY!
Don’t even think of coming to cottage country this weekend, all you slimy little pathogens from Oakville!
______
Absolutely. No problem. I’m coming up next weekend. Meet you at Weber’s on the way?

#94 Sail Away on 05.14.21 at 9:01 pm

#73 Don Guillermo on 05.14.21 at 6:53 pm

I prefer Tres Islas myself. Little more expensive but great…

———-

Agreed. I am also a huge fan of Teslas. Totally worth the extra expense.

#95 Dirty Dan on 05.14.21 at 9:07 pm

> Perhaps this is why four in ten unions fail.

That’s why 4 in 10 unions end in divorce. 2 in 10 probably just continue to live in misery, like a job you’re too lazy to leave even though it sucks.

#96 S.Bby on 05.14.21 at 9:21 pm

#30 Prenup

Run the other way, and I’m not joking.

#97 Yuus bin Haad on 05.14.21 at 9:28 pm

Just don’t tell the Missus about the stash I have hidden in the toilet tank – I liberate a couple of five-spots from my allowance each week and wrap them in a baggie

#98 and the budget will balance itself on 05.14.21 at 9:50 pm

it should be law that anyone wanting to get married should meet with a divorce lawer to discuss what this contract means financially. i learned alot from the below youtube entitled “Marriage Secrets from a Divorce Lawyer with James Sexton”

1) What problem do you currently have that Marriage solve?

2) If you could have any car in the world what would it be ?
3) If you could only pick one car for the rest of your life would it be the same as your answer in question 2
?
https://www.youtube.com/watch?v=-iXwkwIEIbI

#99 Cici on 05.14.21 at 10:16 pm

#78 Sail Away

Personally, I think people who can appreciate the wonderfully diverse range of human expression and express nonjudgmental kindness are wealthier than those who are only asset rich.
____________________________________________

LOL! Like the nonjudgmental kindness you bestow upon Faron?

#100 truefacts on 05.14.21 at 11:08 pm

Question – for Garth or anyone else if he doesn’t know…

Can you pay your spouses income taxes so they have more money to invest in the cash account?

#101 Don Guillermo on 05.14.21 at 11:24 pm

#94 Sail Away on 05.14.21 at 9:01 pm
#73 Don Guillermo on 05.14.21 at 6:53 pm

I prefer Tres Islas myself. Little more expensive but great…

———-

Agreed. I am also a huge fan of Teslas. Totally worth the extra expense.
*********************************
Hahaha, love it. One story.

Last fall while rushing around preparing vehicles for winter I slammed my thumb in the car door. Tears to my eyes. I said to the wife “this is the first time I wished I owned a Tesla.” German fit and finish is not always your friend.

#102 The joy of anglerfish on 05.14.21 at 11:43 pm

Would this be a form of symbiotic bank accounts!!

The males of some anglerfish species, including the football fish, have evolved into ‘sexual parasites’.” They have well-developed olfactory organs, but poorly developed feeding organs. So when they follow their nose to a female, they bite on to her, whereby she releases an enzyme resulting in the latched male “eventually losing their eyes, internal organs and everything else but the testes. The male becomes a permanent appendage that draws nutrition from its female host and (in return) serves as an easily accessible source of sperm.” A female can host more than one male, which dangle from the lower perimeter of her body for as long as she needs them for reproduction. This symbiotic relationship results from the dearth of potential partners in the deep; as in a lonely bar at closing time, desperate partners hook up how and where they can.

#103 mehwrong on 05.15.21 at 12:43 am

The reason my wife and i (married 15 years) have separate finances is so that we don’t micro manage each others spending. I dont want to know every little thing she buys and vice versa. Lack of trust maybe, but it keeps us happy. Sure poor but happy i guess.

#104 SoggyShorts on 05.15.21 at 12:55 am

#89 Jens on 05.14.21 at 8:19 pm
#36 SoggyShorts on 05.14.21 at 4:16 pm
What if the rent that comes out is from “my share” and the transfer to questrade came from “her share”
or 50-50?
—- –
From what the FinancialWisdomForum gurus told me, it’s perfectly acceptable in CRA’s eyes (and a smart tax-saving move for you) if the high-income spouse pays for household expenses, the new car etc., and the low-income spouse invests all their income. Then all gains and dividends will be attributed to that spouse at their lower tax rate. Just document clearly that you did so.

************************
Makes sense. I was able to truly and ethically income split with my wife before retirement by virtue of starting a company and then actually doing the same job for the same pay so it was just a theoretical question since we’ll always be in the same tax bracket.

#105 IHCTD9 on 05.15.21 at 2:21 am

Looking thru the comments on marriage and money, you can see all the different situations that exist. I’ll add one – plain old luck.

I’ve been with Ms. IH since 18 years old (19 for her), we thought nothing of money back then. We got hitched 7 years later, and by then we had found out we were a pretty good match on the money front – two fiscal conservatives, despite her NDP voting habit.

30 years later, a lot has changed – but not on the $$ front. Lady Luck has smiled upon us decade after decade, we’ve never had a fight about money – not even once. We’re a perfect compliment on that end of things.

#106 TurnerNation on 05.15.21 at 2:21 am

How’s the ‘Middle east Peace Process’ coming along guys? I’ve been waiting, 4 decades. How about you?
Just flip what our rulers tell us 180 degrees to make sense. It’s a war process. Over Land from what I can see.

Our free travel rights. A year ago the Consp. nutters breathlessly were pointing at the ID2020.org site – backed by big global corps.
Today?

Yes. The Blockchain was invented for us. Global control and tracking over all humans, animals and food.
2020 the New System was unleased upon humanity.
Why your Province is currently locked down for years . Notice they no longer even use the colour codes. It’s just shut down. New Normal.

https://www.goodhealthpass.org/news/

Good Health Pass: A New Cross-Sector Initiative to Restore Global Travel and Restart the Global Economy
February 9, SAN FRANCISCO, CA – ID2020 is proud to announce the launch of the Good Health Pass Collaborative along with leading individual companies and organizations in the technology, health, and travel sectors – including the Airports Council International (ACI), Commons Project Foundation, COVID-19 Credentials Initiative (CCI), Evernym, Hyperledger, IBM, International Chamber of Commerce (ICC), Linux Foundation Public Health, Lumedic, Mastercard, Trust Over IP Foundation, and others (complete list).

#107 NSNG on 05.15.21 at 2:22 am

It’s ironic that Ford will probably pay the ultimate political price for his bumbling of the Ontario pandemic response.

Had the liberals or NDP been in power, their response probably would have been just as, if not more, draconian.

#108 Under the radar on 05.15.21 at 5:11 am

Married 32 years yesterday. She contributed so much time , effort and hard work to our good fortune. I’m one of the lucky ones .

#109 RealConservative on 05.15.21 at 7:09 am

DELETED

#110 Steven Rowlandson on 05.15.21 at 7:20 am

“Why would you live with someone, marry them maybe, buy a house and have a kid or two together, yet not trust them with money?”

Because of Canada’s laws and political correctness.
Women are really married to self interest and the governments. Not to us men.

#111 Jane24 on 05.15.21 at 8:03 am

Like most who married in the 1970s all of our accounts and assets are in both names. Sometimes in the last 45 years I made more and sometimes hubby did but I am sure it has all evened out by now! BUT my parents and I also shared some accounts for easy access and the same is true with our adult children. I guess we have all had a sense of family money rather than individual pots. I believe that the same can be said for many Canadian families of Chinese or Indian origin although we are 50% Italian. If you can’t trust your spouse or family, then that is really sad.

#112 Phylis on 05.15.21 at 8:19 am

There is true love and there is smart love.

#113 Tbone on 05.15.21 at 8:33 am

Most people that fight about money are the ones that don’t have any

#114 Dharma Bum on 05.15.21 at 10:12 am

I heard Cheech & Chong had a joint account.

OHHHHH! Badda boom – Badda bing!

https://www.youtube.com/watch?v=DzWz3En07og

#115 Sail Away on 05.15.21 at 11:29 am

#98 Cici on 05.14.21 at 10:16 pm
#78 Sail Away

Personally, I think people who can appreciate the wonderfully diverse range of human expression and express nonjudgmental kindness are wealthier than those who are only asset rich.

———–

LOL! Like the nonjudgmental kindness you bestow upon Faron?

———–

I’m glad my efforts do not go unnoticed. It can be difficult turning the other cheek, but sooo worth it!

#116 westcdn on 05.15.21 at 11:36 am

Not too concerned about the future – I will either live or die. I just do not want to be a drag – Archie Bunker sang about everyone pulling their weight. I got a kick when Maude was introduced to him.

Now I am trying where to go. Preferreds/Reits have played out, equities are expensive so I am heading to the sidelines. Maybe the cowboys today will flame out on their cryptos. Could be wrong, sustainable cashflow matters to me so try to be nimble.

I have always had problems with psychopaths and their minions. Get lost – they do not like that answer. I guess I am destined for more battles. I will not help them to trod. I like the salt of the earth and ethics.

That is what I think. Never give away the will to die on a hill. Fat and happy is not my goal.

Making decisions without consequences is impossible. I will express my successes forward rather than learning talking errors. Hear me. It is time for me to advance rather than stand. One thing I regret is not having confidence. It has passed.

#117 Pillboy on 05.15.21 at 5:19 pm

There is no one-size fits all. My wife is the beneficiary and successor holder for the important accounts. However it’s easier to keep the non-registered accounts separate, as we can clearly prove to the CRA that all the money in each respective account can be attributed to each of our own employment incomes. Also, she likes the B&D portfolio, but I definitely like concentrated positions for a portion of my own portfolio. I can deal with the swings in account value, but I don’t think she would be handle it. Saves a lot of arguing on investment strategies.

At the end of the day, the higher earner pays a proportionally higher amount of the household expenses, and the other one investing the savings is the way to go.

#118 Murray the Vet on 05.15.21 at 11:25 pm

Garth, Thanks for posting Tess and thanks to Oakville Rocks!, Barb and the Jaguar for your kind comments.