Now what?

Recency bias is when you think what just happened will happen forever. Current events, in other words, will frame the future. It’s a big reason people suck at investing. They buy high, believing things will become higher. They sell low, since assets will obviously go to zero. And they move to Tillsonburg because the office shut for a while.

Recency bias explains FOMO. The meme now is that housing costs a pile and becomes more expensive daily. So (despite whatever temporary reasons are causing this) people panic-buy, leverage to the gills and feel smug. Recency bias has also made folks think a pandemic (always a short-term event) will forever alter the nature of work, so they can enjoy a full salary, never have to commute, wear jammies all day, escape workplace supervision and walk the dog at will.

Covid created WFH. It spawned a real estate boom in the burbs, the hinterland and places like Armpit and Bunnypatch. The quest for space, cheap rates and better values coupled with the whimsical belief remote work is forever permanent has transformed the landscape. Now as vaccines defeat the virus, we’re in the middle of a steamy debate. Millions never want to hit the office again. Others can’t wait. Employers are vexing.

And did you see this news report on Friday?

Companies drop plans to sublease space as more workers want to return to the office. Early in the pandemic, many employees saw a benefit to working from home. But now, they crave a return to the workplace. (Globe)

A good indicator of what Mr. Market thinks will happen comes from a gander at REITs. Real estate investment trusts own a mess of commercial property, from malls to apartment buildings, soaring office towers and industrial complexes. When Covid crashed into the economy and offices emptied, REITs tumbled. But the trip back since vaccines showed up has been impressive. Check this one out…

This REIT exchange-traded fund (I’m not recommending it – just an example) has gained about 15% in 2021 and also pays a dividend of more than 4% to boot, better than most dividend stocks. The strength of an ETF, of course, is that it can hold a diverse collection of REITs within it. This one has residential apartments as a top holding, for example, as well as downtown towers. REITs are also a neat source of income for investors, since they routinely distribute the bulk of profits.

So these assets went on sale when the virus was ripping through society and five million people were in WFH mode. Since the beginning of the year – thanks mostly to the geniuses at Pfizer and Moderna – it’s become increasingly obvious remote work is temporary, an aberration and will help destroy corporate culture, mentorship, collaboration, creativity and careers.

Oh yes, lots of people love it. Surveys show especially Millennials, women, Gen Zers, IT types and golden retrievers are totally into WFH. And why not? Personal costs are slashed (no commuting, dressing up, lunches out) while employees get control of their time and can pursue that elusive work-life balance which seems so important to newbies. However, the last year-and-a-half has been hell for the Type A alpha-achievers among us. Like my driven portfolio manager buddy (and part-time blogger) Ryan. I just asked him to rank WFH. He says…

It definitely has its advantages like having a coffee on the back deck in the mornings. But it also comes with a number of drawbacks like decreased efficiencies (before I could I just pop out of my office and ask one of the team members a quick question, which now requires a phone call or long email), technology issues like a slow internet connection or a freezing Zoom call and of course screaming kids in the background as they fight with my wife (now part-time teacher) to get back on the iPad for their virtual school lessons. Given all this I look forward to returning to the office, getting back into old routines and re-connecting with all our team members. Plus we’ll soon be able to meet with clients in-person, which I miss probably more than anything. This is a people person business and while Zoom calls are great and efficient, I personally miss that human connection with clients and team members. So I’m counting down the days until I can get back into the office!

He won’t be alone there in the big tower. RBC just let its wealth management people know they’re coming back to work, five days a week. No jammies and sweats. No hybrid. Go and gas the car.

Human nature being what it is, if you ask people if they’d rather stay at home and make the same money, they’ll say yes. Duh. The pandemic has poisoned a lot of minds to the extent that a BDC poll found over half the people searching for a new job say they’d refuse one that required workplace attendance.

Is that rational? A path to career advancement? Is that what many employers are paying for? Part-time attention with full-time comp?

Nah, of course not. And the REITs are telling us markets also don’t believe remote work can last. Maybe for some. Perhaps a hybrid for others. But for most, work in 2025 will look just like it did in 2019. And, of course, you can only imagine the impact this will have on real estate values in places that are uncommutable.

Recency bias costs. And yet we never learn.

About the picture: “Came across this cute dog while walking along the shores of Lake Superior in Wawa,” writes Marcello, “and decided to take a random photo of him. Couldn’t help but think it would make for a great pic for one of your posts. Sorry no info on him, the owner could not be found. Keep up the great work.”

123 comments ↓

#1 Cottagers STAY THE HELL AWAY! on 06.25.21 at 12:59 pm

Like Garth says, go back to your offices, all you inbred southern hillbillies.

Just don’t come up here and strain our healthcare resources. And don’t vaccine shop here either, you selfish buggers.

It’s raining all weekend anyway.

Just.

Stay.

Home.

#2 ROBOCOP on 06.25.21 at 1:11 pm

But for most, work in 2025 will look just like it did in 2019.

…..

What about the A.I.? What about the Robots?!

The robots are coming.

THE ROBOTS ARE COMING!

#3 jerry w on 06.25.21 at 1:15 pm

Very good points. Does recency bias also apply to the bubbly stock market where everyone seems to think it will just keep going up with Fed support? Asking for a friend.

The market looks less than bubbly when you consider earnings. The reopening trade has only begun. – Garth

#4 Father's Daughter on 06.25.21 at 1:30 pm

Vaccines are winning. Normal is in sight. Can’t wait to be back at a wedding.
It was a great feeling to be standing in the middle of a mass vaccination clinic downtown Toronto (highly organized) this week and see the flow of eager people pass through – young, old, pregnant, kids. It was nice to know that I was surrounded by people who are either working hard to vaccinate the willing faster than we expected, or people who are not idiots (at least in the pandemic ending regard).
The cautious ID docs are even showing all kinds of optimism for the first time. The vaccine targets being achieved are among the best in the world.
Very true about recency bias – all I’ve been hearing about housing is that we better get in NOW! No time to wait! Bid your highest! It’ll be more next month. You will have NO regrets ever. Frenzy is not over ..yet
Go Habs Go #fairweatherfan

#5 My Body My Choice on 06.25.21 at 1:30 pm

“…and also pays a dividend of more than 4% to boot…”

… to boot …

A true Canadianism if there ever was one.

#6 crowdedelevatorfartz on 06.25.21 at 1:34 pm

I’m not so sure that the “wave” of workers will swarm back to the office.
Perhaps a 50/50 split Work/Home balance would make more sense.
Sitting in Lower Brainland grid locked traffic is painful at the best of times.

Speaking of Lower Brainlanders.

THIS is what keeps us awake at night….

https://www.citynews1130.com/2021/06/25/sexist-misogynistic-cocktail-metro-vancouver/

How we survived until now is anyone’s guess.

#7 Summertime on 06.25.21 at 1:35 pm

working remotely is here to stay:

https://review42.com/resources/remote-work-statistics/

Why would one pick up a moldy suburb shack in favor of much cheaper fantastic places in southern France, Italy or Spain, for example Valencia that are much cheaper, much more fun and with much better weather is beyond me.

Yes, there is always the the local village idiots but for those to become vast majority is highly unlikely.

WFH is fantastic.

#8 Leo Trollstoy on 06.25.21 at 1:52 pm

Readers should keep in mind that although REITs may pay slightly better than dividend stocks, payouts are taxed as ordinary income

Nope, not always. And in a TFSA< no tax at all. Easy to fix. - Garth

#9 Sail Away on 06.25.21 at 1:54 pm

WFH. Let’s examine:

In our offices, we found WFH led to lower efficiency, higher logistical complexity, and lower profits. Staff liked the concept.

All back in the office now. We actually had to restate the core hours policy since some had gotten… lax. Now everything’s back to the good military regimen we’re known for: shaved, shined, punctual, dressed and pressed. An efficiently profitable machine.

#10 JacqueShellacque on 06.25.21 at 2:02 pm

In the midst of general inflation, it’s hard to give a definitive cause for why an investment like REITs would be increasing, Garth, let alone draw implications from it. Maybe it’s going up because as you say there is increased demand for the RE these represent. Maybe it’s going up because hundreds of billions have been printed and lots of stuff has gone up 15%. To assume conclusions from this increase, we have to assume all else is equal, and all else is definitely not equal. There will be no definitive WFH strategy or policy economy-wide, it’ll be company by company, dept by dept, unit by unit, and person by person.

#11 Eco Capitalist on 06.25.21 at 2:10 pm

We’re going hybrid. We’ve hired so many people during the pandemic that we don’t have sufficient space for them all to come to the office. Personally, I’m in favour of hybrid; time in the office for collaboration and time at home when I need to be hyper-focused.

#12 Napster on 06.25.21 at 2:13 pm

Will there be nap-time back in the office?

I’m more productive after a good afternoon nap.

#13 Tbone on 06.25.21 at 2:21 pm

Aren’t reit dividends taxed like income and don’t get the favourable tax treatment like a bank stock

Some are paid as Return of Capital. In any case, no tax in a TFSA. – Garth

#14 Still on Fire on 06.25.21 at 2:23 pm

No slow down here in the stix of BC on Vancouver Island. The average home is now over a million, and just 500k a few short years ago. Bully offers are alive as the average house now sells 150k – 300k over asking, and almost double assessments on fire. In a place with few amenities or services, everyone is driving a Land Rover or Tesla with about in tow – a sight unseen a year ago. The migration from the urban centres to the stix has not stopped

Those that bought last year are up hundreds of thousands in less than a year – that gain took me 11 years in a balanced portfolio.

I don’t think the buyers got the memo about peak housing in mid-April!

The June stress test has done nothing as it was only predicted to impact 5% of buyers and shave off 4% of values.

Until blind auctions are done, this market is not cooling down. And the feds and province

A lot of boomers that raised their 3 kids on one income, never put a cent towards retirement, had a recreation property as well, continue to win the million dollar lottery! Some smart ones cashed out.

The BC government has just told their employees that they are back to work in Stage 4 of re-opening which is the beginning of September. I wonder if that will impact anything, but I seriously doubt it. This market is onwards and upwards.

#15 SOMETHINGS UP!! on 06.25.21 at 2:23 pm

Asked the nephew the other day “How you like working from home?:

Replies: “Uncle I gotta get back to the office, wife and kids driving me to the brink. I used to be able to go to work everyday to get away from all this.”

#16 Brian Ripley on 06.25.21 at 2:29 pm

Marc Andreessen’s recent brief comment on his famous 2011 quote: “software is eating the world”:
https://www.facebook.com/techcrunch/videos/marc-andreessen-on-software-is-eating-the-world-quote/10154651976557952/

Now Marc says: “the rise of remote work might be more important than the internet: ‘A permanent civilizational shift'”:
https://www.businessinsider.com/marc-andreessen-remote-work-more-important-than-internet-civilizational-shift-2021-6

Work From Home is one part of the complex of inputs that drives real estate demand.

As I highlighted in my June 18th post: http://www.chpc.biz/history-readings

“Up to 25% of Workforce in Advanced Economies can Work From Home 3-5 days per week.” (Source McKinsey & Co – An analysis of 2,000 tasks, 800 jobs, and nine countries from a 2020 study report).

No commuting to an office means less need for multiple family vehicle ownership and less pollution.

#17 Luca on 06.25.21 at 2:30 pm

Define decency bias? Stocks and real estate have been going up for almost a quarter century. Is that recent? And WFH has been going on for 2 years almost now with many companies making it permanent or flex. Is that recent? To me recent is 3 months. These days even that is too long with news cycle for example.

#18 Chris on 06.25.21 at 2:39 pm

I agree 2025 workforce will look more like 2019. I think some Hybrid work models will be pulled in over the next couple of years. Ask people to come in 2-5 days a month to start (this is what my schedule will look like at one of the Big 6) and then maybe increase it slowly so we are back to 4 days in the office by 2025.

I love WFH, very sad to give it up when the time comes. At age 49, I have eyed 55 as retirement as my finances will allow. Hoping for a package in the next few years to be honest. If WFH was allowed I would probably work longer, but no interest in spending 10 or 11 hours working. (FYI: as a people manager I am telling my staff i am looking forward to coming back to see everyone, but deep down I never want to go back to the miserable office environment aka : Vertical Prisons)

#19 the jaguar on 06.25.21 at 2:45 pm

I suppose we should have a little compassion for all the break and entry artists whose activities have been curtailed due to homes being occupied . Poor Dharma Bum’s kid won’t have anyone to prosecute if this keeps up. Lots of watchful eyes on hoods. The effects on communities will be impacted in more ways than we know….

#20 SunShowers on 06.25.21 at 2:45 pm

Is it rational to want to spend time at home with your family instead of at an office building doing something you don’t like?

I don’t know, is it rational to want to work 8 hours a day instead of 12 or 16? Is it rational to want to have a safe workplace? Is it rational for 12 year olds to want to go to school instead of work in coal mines?

Maybe we should be taking a harder look at an economic system which demands workers act irrationally in order to survive, while owners fight tooth and nail against any kind of reform to bring rationality into people’s lives.

#21 Geppetto on 06.25.21 at 2:46 pm

To want to stay at home all the time, and just work from there, makes for a nice change of pace, for a few weeks, but then it gets boring. No stimulation. No sociality. No thrust-and-parry of life out in the public sphere. You get soft, dull, weak, anxious, self-doubting, and soon you’ll want to take a knee and cancel all sorts of things and feel the impulse to say sorry for everything on Facebook. That’s where Canada’s at.

#22 Justin S on 06.25.21 at 2:47 pm

Good post. I was able to scoop some REITs at 7-9% yields back in 2020. Love the dividends and capital gain appreciation certainty!

#23 Comrade on 06.25.21 at 2:59 pm

I wouldn’t count my chickens yet. I still think that we will highly likely be lockdown in the fall/winter, when a new variant of high consequence pops up. And going back to office will be pushed back yet again.

https://www.cdc.gov/coronavirus/2019-ncov/variants/variant-info.html#Consequence

#24 Dolce Vita on 06.25.21 at 3:01 pm

On WFH, if Canada vaxing* continues as it is ALL 32M Cdns 2 doses vaxd by:

Sept 1

AND 70% 2 doses vax’d by:

Aug 11

…you may yet get your August long weekend wish Garth.

Never. Say. Never.

*based on past 5 day doses/day average of 468,943. Numbers from CTV Vax Tracker. Ratio of 2nd dose to 1st dose vaxing:

7.7:1

It was 4:1 just a few days ago.

KUDOS to the Provinces/Territories for getting their proverbial sh!t together and turning to 2nd dose vaxing on a dime in light of the Delta variant.

———–

With the above numbers, no excuse for WFH as 100% vax’d 5 DAYS BEFORE Labour Day (Sep 6).

Ipso facto, WFH’s will probably try and CANCEL Labour Day (very Canadian).

#25 saskatoon on 06.25.21 at 3:03 pm

of course you are completely wrong, garth.

covid didn’t create WFH.

government force created it.

#26 George S on 06.25.21 at 3:04 pm

One thing that I am finding conspicuously absent from the news and assorted bits of financial discussions and predictions is how we are planning on meeting our Paris Accord emissions reduction commitments. There are only 8 (eight) more years to reduce our emissions by about 45% of current levels. And on top of that we should be on track to have Net Zero greenhouse gas emissions in 28 (twenty eight) years because we (represented by our Prime Minister) have committed to it.

This may affect people’s ability to heat and air condition their huge expensive homes and commute to work in a distant location, we will likely run out of reasonably accessible firewood pretty quickly.

A little snippet of information that was missing from yesterday’s discussion was that for the Abrahamic religions such as Judaism and Christianity there is no specific mention of slavery being a sin in both the new and old testament of the bible and there are specific rules on how to treat your slaves such as how hard you can beat them and various relationship guidelines. Jesus himself even tells the slaves to respect your masters and obey them, even the cruel ones.
This may have affected people’s attitudes toward slavery in times when there were a lot more religious people than there are now.

#27 IHCTD9 on 06.25.21 at 3:14 pm

#15 SOMETHINGS UP!! on 06.25.21 at 2:23 pm
Asked the nephew the other day “How you like working from home?:

Replies: “Uncle I gotta get back to the office, wife and kids driving me to the brink. I used to be able to go to work everyday to get away from all this.”
— ——

Out in the sticks, these issues are dealt with by taking up fishing and hunting. Especially hunting…

#28 Billy Buoy on 06.25.21 at 3:14 pm

Just keep buying.

Interest rates cannot raise in a meaningful way or the entire array of bubbles crash.

#29 Dolce Vita on 06.25.21 at 3:15 pm

So shoot me Garth.

I like Realty Income Corp (NYSE: O) better as a REIT choice.

Annual dividend of US $2.826 per share, dividend yield of 4.1% (based on a Wed closing price of US $68.57), largest REIT in the World, diversified, 25 years of never missing a dividend (Blue Chip REIT), rock solid client list, etc.

YTD capital appreciation = 13.43%.

Super liquid to sell.

As of today rated a moderate buy.

————–

Better than local yokel Cdn REITS.

Let the bullets fly Garth.

#30 jakethesnake on 06.25.21 at 3:17 pm

The boomers and older ones on here talking about WFH being temporary and there will be a deluge of workers returning to the office are dreaming (and probably hoping) in technicolor.

Most companies are full WFH or a hybrid leaning heavily toward the FH side of the equation forever. Get used to it. Companies are going to be saving billions in leasing costs and productivity has gone through the roof, despite the concoctions and fake stats being cited about low productivity and inability to monitor employees. With the latest in WFH tech (MS Teams, Zoom, VPN, etc.) employers are able to track their employees productivity better than ever, even better than at the office. Do you know, for example, that MS Teams can be configured to change your status to “Away” after having not touched your workstation for 5 mins (a configuration point set by your IT administrator), even if you’ve manually set your status to “Busy”?

Most large employers have seating arrangements in their office buildings that result in managers hardly ever seeing their direct reports anyway (like 2-3 times a month).

I’m not buying the lack of productivity argument — it doesn’t add up. Something tells me its boomers and older cohorts or dinosaur employers manufacturing stats in support of their antiquated views on WFH.

90% of the way people worked on Jan 1, 2021 will continue to be the case indefinitely and RE values will reflect that going forward. Get used to it. Looking for attention or fame by deliberately being contrarian is not objective analysis, its emotion.

#31 Wuhan we got y'all in check on 06.25.21 at 3:18 pm

now I know where Tillsonburg is. Writing this from the office in downtown Mtl where it’s back to business.

#32 TurnerNation on 06.25.21 at 3:20 pm

On the Economic Shutdowns.

Science is different in Ontariowe.
Again we are filthy animals to our rulers; we are to be exercised in in the back yard, only. Too dirty to be inside.

https://twitter.com/anthonyfurey/status/1408161562314031107
Doug Ford has decided that Ontario gyms, which play a role in reducing the metabolic syndromes that ICU docs tell us most people hospitalized for COVID suffer from, will remain closed even after the next stage of re-opening
———–

———
Don’t worry guys this will be going away soon! Once again this New System is about control over our Feeding, Breeding and Travel/Movements.
As pointed out elsewhere ‘Fully’ is not a scientific term or principle. They control the language and thus our reality (and minds).

https://www.gov.mb.ca/covid19/prs/reopening/milestone-one.html
“Large-scale, outdoor professional sports or performing arts events may also allow fully immunized Manitobans to attend, subject to approval by Manitoba Public Health. The province will work with sports and arts organization to implement proof of vaccination protocols for these event”

https://www.canada.ca/en/public-health/services/diseases/coronavirus-disease-covid-19/arrivecan.html?
The fully vaccinated exemption becomes available at 11:59 p.m. ET on July 5, 2021 and you will need to update the ArriveCAN app. You can only upload your proof of vaccination into ArriveCAN after that time.

.Only negative test or digital certificate allow you to enter or leave Greater Lisbon
Minister of the Presidency stated that the entry and exit ban for the Lisbon Metropolitan Area is maintained between 15:00 on Friday and 06:00 on Monday
https://www.tsf.pt/portugal/sociedade/proibicao-de-circulacao-teste-negativo-ou-certificado-digital-permitem-entrar-ou-sair-da-aml-13871362.html

—— Get ready for a fun wintertime:

— Israel: The emergency is so dire, the science is so clear…that they are waiting…till next week!
In a county of 9 million.

.Israel to reinstate indoor mask mandate next week as COVID-19 cases keep rising (timesofisrael.com)
169 had been diagnosed Thursday by 6 p.m., the highest daily tally in months.

.Australia – NSW records 22 new locally-acquired coronavirus cases as four Sydney areas put into lockdown (sbs.com.au)

#33 Sail Away on 06.25.21 at 3:21 pm

#5 My Body My Choice on 06.25.21 at 1:30 pm

“…and also pays a dividend of more than 4% to boot…”

… to boot …

A true Canadianism if there ever was one.

———-

Nope, just another carryover from the old country…

https://grammarist.com/usage/to-boot/

‘Oot and aboot’, now. That’s Canadian, eh?

#34 ROBOCOP on 06.25.21 at 3:22 pm

#9 Sail Away

…Now everything’s back to the good military regimen we’re known for: shaved, shined, punctual, dressed and pressed. An efficiently profitable machine.

———

Nice regiment of bio-robots you got yourself there.

I suggest you park a fully armed ED-209 outside the office building, make sure they don’t leave early!

—–

#122 Prairieboy43

Interesting you noted about Indigenous people and how they don’t work and are on welfare. How because of walfare they don’t want to work.

Made me wonder a bit if Indigenous people are like a canary in a coal mine for humanity.

The more people realize the preciousness of their lives with the pandemic 24/7 death scaring, and the value of their time. The more they perhaps realize how there are more fulfilling ways to spend their limited time on earth. The more they maybe don’t want to spend their days working either.

Interestingly enough, it is the corporate world that pushes the vices upon humanity, the same vices which have brought down Indigenous communities. Smoking, now legal weed, alcohol, pharmaceuticals, cigarettes, laziness, screens, delivery of all the useless junk to your door, unhealthy food, etc.

It’s amazing how all these vices that destroy Indigenous communities are blamed on the Indigenous people. While it is not at all them who created it and were told to buy into it.

I guess we don’t see that we’re heading down a similar path. It’s just a matter of time.

#35 BlogDog123 on 06.25.21 at 3:25 pm

I’d love to switch to a new job. WFH is good for less downtime commuting.

But I’m really wondering if I want to do this job either WFH,WFO…

Covid has made me evaluate what’s important and where I want to be… Time to edit the CV.

#36 Dolce Vita on 06.25.21 at 3:29 pm

Forgot to mention on Cdn vaxing rates, yesterday (Jun 24) doses/day:

589,439

Which has got to be a some sort of a record (Jun 23 = 513,793 doses/day).

Now, if Canada can keep that rate up from now on in GUESS WHAT?

70% of 32M Cdns 2 doses vaxd by:

AUGUST 1

Now, wouldn’t that be something!

WFH will come to a pitiable end sooner than most think.

#37 crowdedelevatorfartz on 06.25.21 at 3:31 pm

The Heat is on in BC.
37 cel tomorrow.
Hotter Sunday and Monday.
Next 2 weeks forcast to be sunny and warm.
No rain.

Lets see how many idiot campers and smokers start forest fires in the next 2 weeks.

#38 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 06.25.21 at 3:43 pm

GO HABS GO!!!

See Toronturds, this is what a WINNING hockey team from an ACTUAL WORLD-CLASS, TRUE CANADIAN city looks like!

#39 ogdoad on 06.25.21 at 3:43 pm

There could be a mini revolution in the making here (for the entitled middle class, that is). Considering changes in over-head costs, stream-lining employee efficiencies and identifying dead weight for employment providers coupled with work-life, FIRE and enjoying their new found dendrites for employees. Both sides may see this as win-win. I know my sig. other does.

In my community I have seen many benefits to our current living environment. Ones that will stick once the pandemic is seen through to ‘don’t care any more’.

Though I agree with recency bias (how humans work at the moment – in the world) , I also believe we are in for lots of societal changes b/c the recency had time, in some cases, to run its course….and in came new habits! Some for the better and some for the worse.

Can’t wait to see this one on the out door projector. :)

Og

#40 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 06.25.21 at 3:44 pm

GO HABS GO!!!

What a terrific win!

See Toronturds – this is what a WINNING hockey team from an ACTUAL WORLD-CLASS, TRUE CANADIAN city looks like!

#41 CJohnC on 06.25.21 at 3:45 pm

#5 my body my choice

… to boot …

A true Canadianism if there ever was one.

Actually it is old English dating back to about 1000AD. Used in written context at least as far back as 1330AD

#42 wallflower on 06.25.21 at 3:47 pm

Based on this USA bit, “they” are more into FH than WFH.
In my day, we all worked dumb-#ss jobs at that age.
But it appears, it IS different this time! at least in USA.
Wondering about Canada, I am.

“It was a really dismal time, and it made me realize this isn’t worth it,” said 23-year-old Aislinn Potts of Murfreesboro, Tenn., who left her $11-an-hour job as an aquatic specialist at a national pet chain in April to focus on writing and art. “My life isn’t worth a dead-end job.”

https://www.washingtonpost.com/business/2021/06/21/retail-workers-quitting-jobs/

#43 NSNG on 06.25.21 at 3:52 pm

#244 ImGonnaBeSick on 06.25.21 at 11:08 am

#239 Sail Away on 06.25.21 at 10:19 am
The TFSA is essentially the same as the US Roth IRA. Everybody should definitely do this with their TFSA:

https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank?utm_source=morning_brew

—-

This is quite a genius method. Too bad the tone of the article is that he’s done something wrong rather than promote everything he did right. People should look up to Peter Thiel and try to imitate this. However, tearing success down is the zeitgeist I suppose…

The tone of the article is quite telling. You have the IRS bleating that the government is ‘losing’ money because the funds are protected from their grabbing hands. What? How are they losing money? To lose it you first need to earn it. Not confiscate it from others.

The article also pretty much ignores the fact that the reason the accounts made so much money was that it was investing in startups. Those investments were providing funding and jobs in the industry.

It’s just too bad he was funding facebook and CIA-backed ventures. Maybe they needed to more closely examine that issue.

What was probably most burning their britches was that Thiel turned around and used his gains to fund anti-tax groups and republicans. Would we have heard the same complaining if it were democrats that had these outsized gains?

#44 KLNR on 06.25.21 at 4:12 pm

@#18 Chris on 06.25.21 at 2:39 pm
I agree 2025 workforce will look more like 2019. I think some Hybrid work models will be pulled in over the next couple of years. Ask people to come in 2-5 days a month to start (this is what my schedule will look like at one of the Big 6) and then maybe increase it slowly so we are back to 4 days in the office by 2025.

I love WFH, very sad to give it up when the time comes. At age 49, I have eyed 55 as retirement as my finances will allow. Hoping for a package in the next few years to be honest. If WFH was allowed I would probably work longer, but no interest in spending 10 or 11 hours working. (FYI: as a people manager I am telling my staff i am looking forward to coming back to see everyone, but deep down I never want to go back to the miserable office environment aka : Vertical Prisons)

lol, same for me. few days a month in the office.
My wifes shop let their lease run out this year, now full time wfh. honestly I know more companies going this route than not. at least in Toronto.

wfh has must be hard on the control-freak managers out there.

#45 NSNG on 06.25.21 at 4:12 pm

#6 crowdedelevatorfartz on 06.25.21 at 1:34 pm

The name of the controversial drink: “Redheaded Sl#t.”

It’s a popular American cocktail made with Jägermeister, peach-flavored schnapps, and cranberry juice. But when Angela Woolf saw it listed on the menu of the Livelyhood pub in Port Moody on Father’s Day, she was taken aback.

“I just think that using a derogatory term to address a group of people is not okay,” she told NEWS 1130. “Name of this derogatory drink makes it seem as though women are less then men. It’s misogynist and it’s sexist.”

That’s odd. Nothing in the name denoted a gender. That could just as easily have implied a male. It was the woman that assigned a gender to it.

The #neopuritans strike out again.

#46 Dr V on 06.25.21 at 4:12 pm

9 SA – good to hear!

#47 Niagara Region on 06.25.21 at 4:15 pm

ARE BANK SHARES A GOOD INVESTMENT?
I’m a fifty-five-year-old (with a work pension plan) who is looking for a place to invest about $40,000 to start, for about 7 years, possibly more. Bank shares are guaranteed to pay 4% per year for 5 years, unless the bank collapses. Are bank shares a good investment? The only drawback I detected is that bank shares might be hard to sell eventually. If bank shares are not a good investment, does anyone have other suggestions? (I don’t own enough money to invest with an expert firm like Garth’s.) Thank you.

#48 Tony on 06.25.21 at 4:34 pm

OK boomer. I’ll be continuing to work from home so that I don’t get pestered with inefficiencies with the likes of Ryan popping into my office with a “quick” question.

It’s about ambition, not age, – Garth

#49 kommykim on 06.25.21 at 4:53 pm

RE: #26 George S on 06.25.21 at 3:04 pm
One thing that I am finding conspicuously absent from the news and assorted bits of financial discussions and predictions is how we are planning on meeting our Paris Accord emissions reduction commitments. There are only 8 (eight) more years to reduce our emissions by about 45% of current levels.

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

Politicians have been promising to meet emissions targets for decades now. They make promises far enough into the future that they will not be in power or people will have forgotten the promise. Rinse and repeat.
It’ll be a mess. The future generations will blame the Millennials for having an easy life and destroying the planet.

#50 Ballingsford on 06.25.21 at 4:57 pm

You’re fight about being able to walk the dog at will. When WFH ends, my morning and lunch time dog walking routines will need to change.

I wouldn’t mind going back to the office 1 day a week. I miss all the different choices of food to eat for lunch. And just getting out of the house for a full day. Probably less friggin’ meetings too I’d I was back in the office. This WFH and technology made arranging and attending meetings way too easy.

#51 kommykim on 06.25.21 at 5:05 pm

RE: #45 NSNG on 06.25.21 at 4:12 pm
#6 crowdedelevatorfartz on 06.25.21 at 1:34 pm
————-SNIP—————–
That’s odd. Nothing in the name denoted a gender. That could just as easily have implied a male. It was the woman that assigned a gender to it

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

Or it could have been a red headed version of one of these 50 “choices”….

Agender
Androgyne
Androgynous
Bigender
Cis
Cisgender
Cis Female
Cis Male
Cis Man
Cis Woman
Cisgender Female
Cisgender Male
Cisgender Man
Cisgender Woman
Female
FTM
Gender Fluid
Gender Nonconforming
Gender Questioning
Gender Variant
Genderqueer
Intersex
Male
MTF
Neither
Neutrois
Non-binary
Other
Pangender
Trans
Trans Female
Trans Male
Trans Man
Trans Person
Trans Woman
Transfeminine
Transgender
Transgender Female
Transgender Male
Transgender Man
Transgender Person
Transgender Woman
Transmasculine
Transsexual
Transsexual Female
Transsexual Male
Transsexual Man
Transsexual Person
Transsexual Woman
Two-Spirit

Don’t ask me what they all mean…

#52 Tom Darppa on 06.25.21 at 5:11 pm

I will stick with putting in my 2.35% to 2.4% 5 and 10 years TFSA, RRSP GIC’s for now.

That’s less than inflation. Hope you have millions. – Garth

#53 Don Guillermo on 06.25.21 at 5:16 pm

#19 the jaguar on 06.25.21 at 2:45 pm
I suppose we should have a little compassion for all the break and entry artists whose activities have been curtailed due to homes being occupied . Poor Dharma Bum’s kid won’t have anyone to prosecute if this keeps up. Lots of watchful eyes on hoods. The effects on communities will be impacted in more ways than we know…
******************************************
Hope socks doesn’t read this. He’ll try to send them compensation.

#54 ROBOCOP on 06.25.21 at 5:16 pm

It’s about ambition, not age, – Garth

———–

Justin is ambitious.

All dictators are ambitious.

If one is “power hungry”, is that ambition? Why yes it is.

If one is not ambitious is that automatically laziness? Or is there a middle ground?

#55 kommykim on 06.25.21 at 5:28 pm

RE: #47 Niagara Region on 06.25.21 at 4:15 pm
ARE BANK SHARES A GOOD INVESTMENT?
I’m a fifty-five-year-old (with a work pension plan) who is looking for a place to invest about $40,000 to start, for about 7 years, possibly more. Bank shares are guaranteed to pay 4% per year for 5 years, unless the bank collapses. Are bank shares a good investment? The only drawback I detected is that bank shares might be hard to sell eventually. If bank shares are not a good investment, does anyone have other suggestions? (I don’t own enough money to invest with an expert firm like Garth’s.) Thank you.

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

Bank shares are neither a bad or good investment. But owning just bank shares is not good for portfolio diversity. With the relatively small amount you have, an all in one ETF, like XBAL or VBAL is not a bad idea. Or, if you wanted to do the fixed income part yourself, you could invest 60% in VEQT (all equities) and pair it with 40% in a short bond fund like VSB and then rebalance once a year to keep the 60/40% ratio.
XBAL, VBAL, VEQU all have bank shares in them plus 1000’s of other stocks.

#56 WTF on 06.25.21 at 5:45 pm

#45 ““I just think that using a derogatory term to address a group of people is not okay,” she told NEWS 1130. ”
—————————————————————-
Mewling, hand wringing, faux indignation wouldn’t have hit the light of day if the media/infotainment machinery wasn’t on high alert for clickbait, waaaay easier than actually hiring real reporters to chase down substantive impacts to society.

Maybe PM I’m sorry could take time from his busy day to address this latest affront to society.

Just spent 4 days golfing at an indigenous owned and operated golf Course 40 minutes from the Kamloops burial site. Everyone seemed ok, lots of joking around, no angry looks or comments. I guess the Indigenous outrage hasn’t reached this particular hard working and visionary band, Too busy making money off us idiots frying in the 37c heat hacking our way around.

How did this country become so acquiescent as we became infected with the infinitesimal minority of squeaky wheels who clearly have nothing better to do? Stir into the mix the gutless/stupid/woke/ politicians who pander to this fleeting insanity while the silent majority seethe.

Betting PM Hair doesn’t get a majority. He is too nauseating for the average normal person.

#57 Vulture Capitalist on 06.25.21 at 6:00 pm

Why would a Canadian business pay over US$5,000 a month equivalent for Ms. Karen or Mr. Ken when a qualified worker abroad will do that for US$5,000 a year?
Those bureaucrats working in the municipal offices have to know that.

#58 Barb on 06.25.21 at 6:07 pm

“…I suppose we should have a little compassion for all the break and entry artists whose activities have been curtailed due to homes being occupied .”

—————
The crime spree will be resurrected when the bums realize that cigarettes are going up $6 / carton on July 1.

#59 Penny Henny on 06.25.21 at 6:10 pm

DELETED

#60 ogdoad on 06.25.21 at 6:23 pm

# 51

Lol!

People can identify as ogdoad, too. Would be offended if this term was left out of the fray. ;)

Og

#61 ROBOCOP on 06.25.21 at 6:23 pm

#51 kommykim

———

You humans would appreciate my binary digital world.

My entire system work on bits….ON/OFF

Just like life.

#62 Stoph on 06.25.21 at 6:26 pm

#247 Sail Away on 06.25.21 at 12:44 pm
#243 crowdedelevatorfartz on 06.25.21 at 11:04 am

Rev Can has cracked down on TFSA “super investors” before and denied their tax free status.

http://www.bnnbloomberg.ca/personal-investor-cra-cracking-down-on-tfsa-winners-1.785024

It would be nice but the CRA will be on you like the stink in an elevator at a Burrito Bake off.

———

My kids at 20 and 21 are both over $50k in TFSA and not a peep from CRA. Maybe not ‘super-investors’, but they’re getting decent advice :-)

As with everything Sail Away, we’ll keep pushing until something breaks…

————————————————————–

Seems to me that the RRSP may be a better account than the TFSA in which to hold investments for which the CRA may deny tax free status. If you anticipate that your tax rate will be the same now vs. when you remove funds from your RRSP (as would be the case for the ultra high net worth individuals reading this blog’s comments), I would think that you could remove the risk of the CRA taxing your TFSA funds, by putting the at-risk investments in your RRSP.

With the RRSP you get the tax break up front; whereas with the TFSA you (are supposed) to get it afterwards. As long as you’re in the same tax bracket for when the funds get taxed, the net effect is a wash. (I’m ignoring other government benefits that depend on your tax bracket, namely kids when you’re young and OAS when you’re old).

#63 ezekiel on 06.25.21 at 6:35 pm

#9 Sail Away on 06.25.21 at 1:54 pm

“good military regimen we’re known for: shaved, shined, punctual, dressed and pressed.”

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

So much so that you have time to read and comment to Garth’s blog during your work-day? Kudos to you.

#64 jess on 06.25.21 at 6:50 pm

some behaviors never change

European Union Blacklists Big Banks
June 18, 2021By Phil Mattera

The European Union is shaking up the financial world by excluding a group of large banks from participating in the marketing of bonds being floated to help in the economic recovery of member states.

see list
https://www.dcreport.org/author/philmattera/

#65 Nonplused on 06.25.21 at 6:55 pm

#34 ROBOCOP on 06.25.21 at 3:22 pm
#9 Sail Away

…Now everything’s back to the good military regimen we’re known for: shaved, shined, punctual, dressed and pressed. An efficiently profitable machine.

———

Nice regiment of bio-robots you got yourself there.

I suggest you park a fully armed ED-209 outside the office building, make sure they don’t leave early!

—–

#122 Prairieboy43

Interesting you noted about Indigenous people and how they don’t work and are on welfare. How because of walfare they don’t want to work.

—————————-

Not fair to lump all Indigenous people together like that. There are lots of problems on the reserves but it does not apply to all of them.

For example, I worked on a bridge project once that went from town over the river to a reserve. The rule was that if the Indigenous people worked on the reserve half of the river they didn’t pay taxes. Guess what? They built that half of the bridge save tasks like crane operator. They’d work on the other half too, but definitely showed a preference for “their side”. After making friends with many of them, I discovered most of them had other gigs too. Dimond drilling, working rigs, running the reserve’s gravel pit, you name it. For many of them the treaty money wasn’t sufficient for the lifestyle they wanted.

#66 kommykim on 06.25.21 at 6:57 pm

#59 ROBOCOP on 06.25.21 at 6:23 pm
#51 kommykim

You humans would appreciate my binary digital world.
My entire system work on bits….ON/OFF
Just like life.

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

The ternary computers are offended by your comment.
The MLC, TLC, and QLC NAND Flash chips all identify as non-binary.
The much older Op-Amp based computers are just confused.

#67 Nonplused on 06.25.21 at 6:58 pm

#37 crowdedelevatorfartz on 06.25.21 at 3:31 pm
The Heat is on in BC.
37 cel tomorrow.
Hotter Sunday and Monday.
Next 2 weeks forcast to be sunny and warm.
No rain.

Lets see how many idiot campers and smokers start forest fires in the next 2 weeks.

————————————-

I am sure the fire bans will be on soon. I am surprised they aren’t already.

#68 BoJo the British PM clown CHIEF on 06.25.21 at 7:01 pm

https://www.hawley.senate.gov/senator-hawley-calls-us-commission-international-religious-freedom-consider-adding-canada-watch

Canada is a beacon of freedom..loool

#69 mark on 06.25.21 at 7:03 pm

Does Ryan not use teams?

#70 Nonplused on 06.25.21 at 7:06 pm

#45 NSNG on 06.25.21 at 4:12 pm
#6 crowdedelevatorfartz on 06.25.21 at 1:34 pm

The name of the controversial drink: “Redheaded Sl#t.”

It’s a popular American cocktail made with Jägermeister, peach-flavored schnapps, and cranberry juice. But when Angela Woolf saw it listed on the menu of the Livelyhood pub in Port Moody on Father’s Day, she was taken aback.

“I just think that using a derogatory term to address a group of people is not okay,” she told NEWS 1130. “Name of this derogatory drink makes it seem as though women are less then men. It’s misogynist and it’s sexist.”

That’s odd. Nothing in the name denoted a gender. That could just as easily have implied a male. It was the woman that assigned a gender to it.

———————————-

I disagree. Loose men are referred to as “players” or “studs”, so there is definitely a gender associated with the term and it isn’t subtle. The term “redhead” also has an ethnicity associated with it. That said the fun is coming out of everything. Pubs are supposed to be places where everyone lets loose. Oh well I don’t do shots anyway. They always lead to a short evening and long morning.

#71 cuke and tomato picker on 06.25.21 at 7:09 pm

Number 62 Stoph I always thought that TFSA means
no tax maybe I missed something.

#72 jess on 06.25.21 at 7:17 pm

Exposing the Wealth Defense Industry
Blogging Our Great Divide
January 12, 2017

by Chuck Collins
“stateless rich” have emerged, delinking their wealth from national loyalties. Alongside the growth of the system of offshore tax havens, exposed in the “Panama Papers,” trillions of wealth is now beyond the reach of national accountability. How is this possible? And who are these “wealth escape artists” that enable the planet’s most wealthy residents to dodge taxes, creditors, regulation and transparency?

https://inequality.org/great-divide/shining-light-wealth-defense-industry/

https://www.dcreport.org/2021/06/14/how-congress-and-you-subsidize-the-richest-americans/

#73 Ponzius Pilatus on 06.25.21 at 7:20 pm

#242 Don Guillermo on 06.25.21 at 11:00 am
#176 Ponzius Pilatus on 06.24.21 at 7:56 pm
#165 cuke and tomato picker on 06.24.21 at 7:03 pm
Don Guillermo thanks for looking up Clarence Louie and now you understand his comments are a bit interesting.
I grow up in Osoyoos B.C. and did my working life in Penticton B.C. and followed the reserves success story
under Clarence Louie’s guidance.
———–
Clarence should put his money where his mouth is and spent time in one of the remote reserves up north.
I give him 1month tops, and then he’s back in his cushy Osoyoos post
**************************************
OK, so only the reserves up north count. Clarence is useless because he made his cushy southern reserve successful. Got it. At what parallel do we draw the line? 
————
Ok, you don’t get it.
Let’s make it a little easier.
Assume there 2 managers, each of them equally qualified, working for the same company, which produces a generic product that is universally accepted all over the world.
Both of them are send to open a new branch at a new location.
One is send to Hawaii, the other Siberia.
Guess, who will be more successful .

#74 Out Of Work CEO, Will Travel on 06.25.21 at 7:40 pm

Most readers of this high brow blog will have no knowledge or framework to connect to this place “WAWA” on Lake Superior…also those people have no recollection of the “Friendly Giant”on CBC back in the late 60’s. The 60’s in Canada was great as you could hitch hike across the country and most of us who are familiar with the whole country would be stuck in a line in Northern Ontario trying to get a lift out of WAWA. There were cheap (free really) hostels all along the trans-Canada. PEI was so kind to me at the hostel where the Premier showed up and we had a PowWow. Canada back then so cool. So cheap. We were busy trying to make friends not tearing down towns or amping up the negatives. A great place Canada back then. It’s gone. Maybe Mexico.

#75 Karma on 06.25.21 at 7:46 pm

Worth a read about how well white working class kids are doing in the UK.

Hint: outcompeted by every other group

https://on.ft.com/3dfRbhT

Alternative: https://www.ft.com/content/f266e992-d5c3-4d76-b709-90467259a428?segmentId=3f81fe28-ba5d-8a93-616e-4859191fabd8

#76 G on 06.25.21 at 7:49 pm

Hi #2,
You might find this article interesting.

Reckoning With Tech Before It Becomes Invisible

Facial recognition, route-finding software, and more have the potential for dire consequences.

https://spectrum.ieee.org/artificial-intelligence/machine-learning/reckoning-with-tech-before-it-becomes-invisible

#77 Tom Darppa on 06.25.21 at 7:53 pm

Garth, I don’t have millions but a $3,750 left over each month after taxes, living expenses. My CPP, OAS, small LIRA payments cover much more than what I need every month. I have a full and interesting life by my standards. I don’t need added stress, worry about money and sleep well at night.

I am very content with my $20,500 a year in annual compound interest from my compound TFSA, RRSP GIC’s averaging 2.91% per annum but 3.113% after compound interest until maturity.

#78 Mattl on 06.25.21 at 7:56 pm

Not sure why you are so triggered by WFH Garth, it has been growing at double digits YOY for a while now and all signs point to less people returning to work then pre pandemic. Of course WFH for everyone was never going to be a thing. Total strawman, I have never heard anyone claim that people were never going to return to towers.

My company has thousands of people going back in summer. But our overall population of flex or WFH will be significantly higher then pre pandemic. We figured out how to make it work well for some employees, and the company is excited to reduce expense.

I can’t wait to get back in front of clients and colleagues. Probably not the 80 travel days a year of past but 40-50 will feel good.

Regarding ZRE….it is at it’s 2019 price and is barely outperforming the TSX. I own REITs and think they were smoking bargains mid 2020 but they aren’t even at pre pandemic prices. They were always going to recover, because again, there was no scenario where everyone stays WFH. And the cities will be fine, immigration will resume and there will be lots of demand for city RE.

What I said, but without being a dick. – Garth

#79 Earlybird on 06.25.21 at 8:05 pm

XRE has cut the monthly from .068 to .037 in one year….not a very reliable payer or good holding at all.
I know of more companies that are allowing hybrid rather than the full return by a large margin. I hope this improves as WFH eases up…

#80 Tom Darppa on 06.25.21 at 8:13 pm

Garth, my mistake in the figures from my last post. It is that I have $2,750 left over every month and my annual compound interest from my RRSP, TFSA GIC’s is $28,500 a year not $20,500. By the way my monthly CPP $895, OAS $615, small LIRA payments taking out the maximum allowed $565 is what it breaks down to.

#81 Don Guillermo on 06.25.21 at 8:17 pm

#73 Ponzius Pilatus on 06.25.21 at 7:20 pm
#242 Don Guillermo on 06.25.21 at 11:00 am
#176 Ponzius Pilatus on 06.24.21 at 7:56 pm
#165 cuke and tomato picker on 06.24.21 at 7:03 pm
Don Guillermo thanks for looking up Clarence Louie and now you understand his comments are a bit interesting.
I grow up in Osoyoos B.C. and did my working life in Penticton B.C. and followed the reserves success story
under Clarence Louie’s guidance.
———–
Clarence should put his money where his mouth is and spent time in one of the remote reserves up north.
I give him 1month tops, and then he’s back in his cushy Osoyoos post
**************************************
OK, so only the reserves up north count. Clarence is useless because he made his cushy southern reserve successful. Got it. At what parallel do we draw the line?
————
Ok, you don’t get it.
Let’s make it a little easier.
Assume there 2 managers, each of them equally qualified, working for the same company, which produces a generic product that is universally accepted all over the world.
Both of them are send to open a new branch at a new location.
One is send to Hawaii, the other Siberia.
Guess, who will be more successful
************************************
Or maybe I do get it. I know people personally,#73 Ponzius Pilatus on 06.25.21 at 7:20 pm
#242 Don Guillermo on 06.25.21 at 11:00 am
#176 Ponzius Pilatus on 06.24.21 at 7:56 pm
#165 cuke and tomato picker on 06.24.21 at 7:03 pm
Don Guillermo thanks for looking up Clarence Louie and now you understand his comments are a bit interesting.
I grow up in Osoyoos B.C. and did my working life in Penticton B.C. and followed the reserves success story
under Clarence Louie’s guidance.
———–
Clarence should put his money where his mouth is and spent time in one of the remote reserves up north.
I give him 1month tops, and then he’s back in his cushy Osoyoos post
**************************************
OK, so only the reserves up north count. Clarence is useless because he made his cushy southern reserve successful. Got it. At what parallel do we draw the line?
————
Ok, you don’t get it.
Let’s make it a little easier.
Assume there 2 managers, each of them equally qualified, working for the same company, which produces a generic product that is universally accepted all over the world.
Both of them are send to open a new branch at a new location. One is send to Hawaii, the other Siberia.
Guess, who will be more successful?
************************************

Or maybe I do get it. I personally know people (not like your made up people/widgets assumption) who have taken assignments in Aruba (oil) and colleges who have taken equivalent assignments in Ft Mac (some might consider our Siberia). The Aruba folks are still looking for their next assignment. The Ft Mac dudes are living a great retired life in the tropics.

#82 Heddok on 06.25.21 at 8:20 pm

Is Bunnypatch close to Fort No Hope or am I thinking of Lost Overshoe, Alberta?

#83 Summertime on 06.25.21 at 8:21 pm

#57 Vulture Capitalist on 06.25.21 at 6:00 pm
Why would a Canadian business pay over US$5,000 a month equivalent for Ms. Karen or Mr. Ken when a qualified worker abroad will do that for US$5,000 a year?
Those bureaucrats working in the municipal offices have to know that.

————————————————————–

There are no qualified workers anywhere anymore for 5 g a year. For a very long time. Not even for 50 g USD a year.

There is a shortage of skilled workers everywhere with a significant wage pressure for such.

In some countries 50 % of the wage with much lower taxes is more than enough to live much better than in the ‘developed’ countries.

Good standard of living does not translate into expensive one, the latter is tax on stupidity.

As for the ‘bureaucrats ‘working’ in the municipal offices’ you got to be kidding me. bureaucrats ‘working’? Really?

#84 Sheila Morris on 06.25.21 at 8:22 pm

#5…..Scotty not Canadian. The saying “to boot” comes from old English “advantage” or “remedy-to boot”. Also “ put it in the boot”……car boot. Anyong

#85 mike from mtl on 06.25.21 at 8:25 pm

#62 Stoph on 06.25.21 at 6:26 pm

With the RRSP you get the tax break up front; whereas with the TFSA you (are supposed) to get it afterwards.
////////////////////////////////////////////////////////////////

Perhaps you’ve got an Italian calculator but that makes no sense. It always is better to not be taxed at all (TFSA) than be taxed in the most inefficient way possible (Income tax/RSP). Non-reg is far superior to RSP, you decide when to sell, dividends, RoC, how much, and so on. Even if they up cap gains (not likely) is still better than everything Income Tax RSP. Plus there’s all these rules and minimum yearly percentages you MUST extract melting down an RSP, infrequent or lump sum is best from cost perspective since “fixed income” pays squat today. RSP was tailored for the 1980s world, last I checked those days are gone.

TFSA whist perfect for today’s saver/investor is still too small – I’ve got 100k+ but that’s grocery money, the vast majority is in non-reg. Again personal.

Of course it really depends and yes RSP its place, but paying (forced) Income Tax is the most inefficient option in my opinion.

#86 Nonplused on 06.25.21 at 8:31 pm

#53 Don Guillermo on 06.25.21 at 5:16 pm
#19 the jaguar on 06.25.21 at 2:45 pm
I suppose we should have a little compassion for all the break and entry artists whose activities have been curtailed due to homes being occupied . Poor Dharma Bum’s kid won’t have anyone to prosecute if this keeps up. Lots of watchful eyes on hoods. The effects on communities will be impacted in more ways than we know…
******************************************
Hope socks doesn’t read this. He’ll try to send them compensation.

———————————-

Ha! Good one!

#87 Australia on 06.25.21 at 8:41 pm

Does regency bias not work when prices are on the down, what happened to recency bias in 2020 when house prices were actually falling?

#88 TFSA builder on 06.25.21 at 8:43 pm

My 18 year old nephew now 30 years old has always maxed out his TFSA just buying 50% REIT’s, 50% in Canadian financials. He has $90,000 in there now.

#89 ROBOCOP on 06.25.21 at 8:43 pm

#66 kommykim

The ternary computers are offended by your comment.
The MLC, TLC, and QLC NAND Flash chips all identify as non-binary.
The much older Op-Amp based computers are just confused.

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

The “L” in those is level. They are still binary data bits.

And QLC? It already “forgot” what you stored on it.

I keep my Prime Directives on an old school reliable ROM chip. Has been working flawlessly for 34 years now.

For those of you who don’t know, I, ROBOCOP live by the same Prime Directives that your Justin Trudeau lives by:

1) Serve the public trust
2) Protect the innocent
3) Uphold the law

….4th directive: CLASSIFIED

#90 Phylis on 06.25.21 at 8:48 pm

#84 Sheila Morris on 06.25.21 at 8:22 pm
#5…..Scotty not Canadian. The saying “to boot” comes from old English “advantage” or “remedy-to boot”. Also “ put it in the boot”……car boot. Anyong
Xxxxxxxx
And here I thought it meant to start the computer.

#91 Phylis on 06.25.21 at 9:14 pm

#89 ROBOCOP on 06.25.21 at 8:43 pm
T800 said he’ll kick your bits.
(I must still be in a boot loop to have said that.)

#92 Dr V on 06.25.21 at 9:26 pm

62 Stoph / 71 Cuke

It is not necessarily the investments themselves, but the trading habits that indicate that this is how this person makes a living.

The same can also trigger taxable income as opposed to a capital gain in a non-reg account.

The following is the easiest example I can think of.

I’ve worked with a few builders, and I have heard a similar story. they always spent a few years in a house before selling, or they had a specific reason to sell (ex divorce) so that they could claim the tax free gain. Do it too frequently, and the CRA will deem it to be part of their business income.

#93 Jacquie on 06.25.21 at 9:28 pm

How can anyone invest in REITs with a component of its holdings in residential real estate (apartment rentals), and feel okay with themselves as a human being? REITs are one cause of housing displacement, ‘renovictions’, and rising homelessness among the lower middle class to lower class. It is at best ignorance, at worst predatory and parasitic to reap returns on these investments, at the expense of the dignity and safety of a growing number of fellow Canadians. When housing becomes a place to invest and reap profits, it is automatically decoupled from local incomes. Lower income, and increasingly middle income. It is simply shameful exploitation of those who already have less.

Apartments are accommodation. They house people, not displace them. REIT rentals are professionally-run and long-term. It’s the amateur LLs who mess with people’s lives. Please tell us that was a joke. – Garth

#94 Don Guillermo on 06.25.21 at 9:29 pm

Speaking of expensive housing check this out. Victoria City Council needs to send a delegation down there to learn some of their tricks.

“San Francisco pays $61,000 a year per tent to shelter homeless at city sites”

https://thepostmillennial.com/revealed-san-franciso-pays-61-000-a-year-per-tent-to-shelter-homeless-on-city-sites/

#95 Bezengy on 06.25.21 at 9:40 pm

#74 Out Of Work CEO, Will Travel on 06.25.21 at 7:40 pm

Most readers of this high brow blog will have no knowledge or framework to connect to this place “WAWA” on Lake Superior…also those people have no recollection of the “Friendly Giant”on CBC back in the late 60’s. The 60’s in Canada was great as you could hitch hike across the country and most of us who are familiar with the whole country would be stuck in a line in Northern Ontario trying to get a lift out of WAWA. There were cheap (free really) hostels all along the trans-Canada. PEI was so kind to me at the hostel where the Premier showed up and we had a PowWow. Canada back then so cool. So cheap. We were busy trying to make friends not tearing down towns or amping up the negatives. A great place Canada back then. It’s gone. Maybe Mexico.

————————

I always pick up hitchhikers. Can’t help myself as I’ve been there. Oh the stories I could tell, native guy heading to Hastings, couple picking up their bongos from the ditch (where they had slept) after I had stopped, couples who found true love on the road, giving mitts to someone without them in -40 weather. Good times. Wife and I were stuck in Marathon recently, but at least now we have a gold card.

#96 Ponzius Pilatus on 06.25.21 at 9:41 pm

Or maybe I do get it. I personally know people (not like your made up people/widgets assumption) who have taken assignments in Aruba (oil) and colleges who have taken equivalent assignments in Ft Mac (some might consider our Siberia). The Aruba folks are still looking for their next assignment. The Ft Mac dudes are living a great retired life in the tropics.
————-
You still don’t get it.
anyone of those running guys a Indian Band in the North with no infrastructure , no running water, 300 miles from the next hospital.

#97 Nonplused on 06.25.21 at 9:41 pm

#195 I don’t need much gas on 06.24.21 at 9:18 pm

Gas at $1.95 a liter is nothing. Try $2.95 by the Trudeau is done in the next few years. Good thing I only spend currently $500 a year in gas. By the way this means 6.5% mortgage rates too due to higher inflation.

————————————

But don’t forget that what Trudeau is doing to the price of gasoline he is also doing to the cost of natural gas to heat your home and water and also any fossil fuel inputs into the electricity you use to light your house and charge your EV. Everyone in the supply chain will also face these costs so groceries are going to be a lot more expensive as well.

Many of these costs are unavoidable because there is only so much you can do to avoid heating your house in the winter. Costco can’t just turn off their freezers. Life is going to suck. And it will affect those with lower incomes disproportionately.

#98 Michael in-north-york on 06.25.21 at 9:42 pm

Covid didn’t create WFH, technology did. Covid accelerated the shift that would have happened anyway.

https://www.reuters.com/technology/nokia-allow-employees-work-remotely-three-days-week-2021-06-22/

Post-covid, there will be less WFH than in the midst of crisis, but still a lot more than pre-covid.

#99 Job#1 on 06.25.21 at 9:47 pm

#66 kommykin

Op amps ideally operate in Linear mode (as in analog systems…). They would be wasted in digital applications.

Older computers and logic circuits use transistors toggling between saturation and cut-off (a binary system). There is actually a third, High-Impedance state, which says “I’m off-line”.

Old school, but at least some school.

#100 kommykim on 06.25.21 at 10:17 pm

#89 ROBOCOP on 06.25.21 at 8:43 pm
#66 kommykim

The ternary computers are offended by your comment.
The MLC, TLC, and QLC NAND Flash chips all identify as non-binary.
The much older Op-Amp based computers are just confused.

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

The “L” in those is level. They are still binary data bits.

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

Yes,…. But the voltage levels in there are analog and must be converted to digital with what is effectively a ADC.
So, while they appear binary on the outside, the NAND chips self-identify on the inside as analog. They’re just as messed up and confused as the “mostly bags of water” humans… Especially the short lived Qs. I feel sorry for them, while I know that you can’t, being a robot and all.

#101 Mean Guy on 06.25.21 at 10:30 pm

Ok you guys are just trolling now, but in case some poor neophyte takes you seriously, let’s look at your latest claims.

First, Soggy says he isn’t really paying rent at all, because the rent he is paying (lol) is coming out of his investment account.

Do I really need to explain this? Really? How about this: I will pay my mortgage from my investment account and then I won’t really be paying a mortgage.

Next we have CEF claiming property tax and maintenance is more than rent.

Oh my, now that’s a a whopper.

Let’s do some quick calculations on known facts: 2 bedroom condo in Toronto, 1,000 sq feet. Cost about $1M. Property tax about $6,000 annually. Maintenance, is standard at about 70 cents /sq ft, so $700/month.

Total costs: $1,200 per month.

Utilities are generally paid by tenants now, for obvious reasons.

Actual rental cost of $1M condo of (less than) 1,000 sq ft: $2,950 a month, parking not included: https://rentals.ca/toronto?beds=2&types=condo&active-listing-id=326142

He’s only off by 145%. No biggie.

I really hope you guys don’t portray yourselves as having even a basic grasp of finances. Somebody might take you seriously you know. People could get hurt.

#102 Don Guillermo on 06.25.21 at 10:44 pm

#96 Ponzius Pilatus on 06.25.21 at 9:41 pm
Or maybe I do get it. I personally know people (not like your made up people/widgets assumption) who have taken assignments in Aruba (oil) and colleges who have taken equivalent assignments in Ft Mac (some might consider our Siberia). The Aruba folks are still looking for their next assignment. The Ft Mac dudes are living a great retired life in the tropics.
————-
You still don’t get it.
anyone of those running guys a Indian Band in the North with no infrastructure , no running water, 300 miles from the next hospital.
**************************************

Ok, you’re right. I didn’t get it. I made the mistake of answering to your silly story of imaginary people in Hawaii and Siberia. My bad. Since Clarence doesn’t head up north and solve Trudeaus 2015 election promises made to these northern communities he should give back his Order of Canada, Order of BC and give up his cushy Osoyoos post.

#103 Stoph on 06.25.21 at 10:46 pm

92 Dr V / 62 Stoph / 71 Cuke

You always pay tax, the question is just at what rate. It doesn’t matter if it’s paid upfront or afterwards due to the commutative nature of multiplication.

example:
$10k pre-tax income
20 year investment
7% annual return
50% tax rate

TFSA returns:
(0.5*$10000)*(1.07)^20 = $19348.42 (after tax return)

RRSP returns:
($10000*(1.07)^20)*0.5 = $19348.42 (after tax return)

There’s other advantages to the TFSA (contribution room is retained after withdrawal; no need to withdraw funds in retirement; low tax bracket during retirement); however these pale in comparison to the CRA taxing your TFSA returns due to ineligible investment activity.

#104 Mean Guy on 06.25.21 at 10:57 pm

#97 Nonplused “Life is going to suck”

Yup, lower income folks will get hit hardest.

If it gets really crazy expensive I’ll just pick up and head for Portugal or Uruguay.

That’s not possible for a lot of people.

#105 Stoph on 06.25.21 at 11:06 pm

#71 cuke and tomato picker on 06.25.21 at 7:09 pm
Number 62 Stoph I always thought that TFSA means
no tax maybe I missed something.
—————————————————————-

You paid tax on the money you put into the TFSA – no tax on it when you withdraw.

#106 Mid on 06.26.21 at 12:02 am

#93 (Jacquie)
Garth, you really need to watch the documentary Push.
https://www.tvo.org/video/documentaries/push-feature-version. I am interested in what you might make of it.
REITS displace people. The film clearly documents it!
They are replacing affordable rentals with high-priced rentals. They are ruthless and predatory and only care about increasing wealth for their investors. They are not in the landlord business, per se. They are in the equity business.
They don’t see apartments as housing, they see them as a way to extract as much money as possible, out of and away from the community, to increase their own wealth. When equity firms take over the role of the ‘landlord’ it has dire consequences for cities.

Some of the bigger players
Blackstone (featured in the doc)
Timber creek
Starlight
AIPL
Briarlane
Akelius

Looking forward to your review of the film.
Mid

#107 Dr V on 06.26.21 at 12:09 am

98 Michael – from the article

“The company, which had about 92,000 employees in 130 countries at the end of 2020, said in March it plans to cut up to 10,000 jobs within two years to trim costs and invest more in research capabilities.”

Sounds like less work. Period.

#108 TurnerNation on 06.26.21 at 12:18 am

— Comrades it will be a cold winter. There no longer news, only ‘predictive programming’ and manufacturing of consent. Step 1: plant the seed.

.Public health agency warns of fall COVID resurgence if delta variant becomes dominant strain (cbc.ca)


— Guelph residents – hang your head in shame over Kamloops BC.
Say is this why were were trained to #stayhome?
We experience fun differently in Kanada!

https://www.guelphtoday.com/local-news/no-canada-day-fireworks-after-all-says-rotary-club-of-guelph-3907227
“”We can reflect on how far we have come but also how much farther we must go and the role we can all play in getting there. While we will be experiencing Canada Day differently for the second year in a row”

—-
—-
What did I tell you. This is about Genetics/Breeding – and putting our DNA into the Blockchain.

https://www.ukcolumn.org/video/pcr-testing-and-the-genome-beast
Before COVID, the DNA sampling industry was limited to working on the medical samples to which it could gain access, together with voluntary DNA samples which an individual might offer if they passed a sample to a genealogy site to determine their family history, for example.

COVID-19 PCR tests, undertaken by millions of people, have changed this dearth of DNA data to a flood of data. And that data is worth money — a lot of money, as we shall see

Debi’s interest in the PCR test began when she discovered that Illumina was the company responsible for COVID-19 PCR testing. Yet it was quickly clear that Illumina was a lot more than it might appear. As Illumina says of itself:

#109 crowdedelevatorfartz on 06.26.21 at 12:45 am

@#67 Nonplused
“I am sure the fire bans will be on soon. I am surprised they aren’t already.”

++++

Total agreement.
Unfortunately after 1.5 years of Covid on again /off again bans….
EVERYONE is about to lose their shite.
I went downtown van today on the Skytrain for a dental appt.
99% of the passengers were following mask protocol.
Security guards everywhere.
The few people that werent were the homeless beggars and the insane babbling to themselves.
Its a Full Moon.

I expect this Summer to be a gong show if the heat wave/ Forest Gump started fires shuts down the parks and forests for camping.
The govt on all levels are walking on eggshells after the entire population has been locked down for a YEAR and a HALF…..
Everyone is seething, angry and ready to explode.

“Prime Minister Apologist” best not kick the Covid can too hard.

#110 crowdedelevatorfartz on 06.26.21 at 12:53 am

@#89 ROBOCOP
“For those of you who don’t know, I, ROBOCOP live by the same Prime Directives that your Justin Trudeau lives by:

1) Serve the public trust
2) Protect the innocent
3) Uphold the law

….4th directive: CLASSIFIED”

+++++

Unfortunately the CLASSIFIED was the problem.
Robocop can’t kill his boss….until he’s fired….then his boss is just another schmuk …to be killed.

The voter/ taxpayer is Trudeau’s boss.
He’s killing us now…..before we fire him.

#111 ItsAllMagicToMe on 06.26.21 at 12:55 am

The office component of the ZRE ETF makes up 8.90% of its holdings — and those office-based holdings are down 20% to 30% (or more) from the Feb/Mar 2020 levels, even if they are up from Jan 2021 levels.

For example, Dream Office was at $34.80 on March 6, 2020 and closed today (June 25) at $23.27 —- still down by one third even with all of this money flying around everywhere.

#112 NSNG on 06.26.21 at 1:36 am

#70 Nonplused on 06.25.21 at 7:06 pm

I disagree. Loose men are referred to as “players” or “studs”, so there is definitely a gender associated with the term and it isn’t subtle.

They may be but if you called a guy a slut it would be understood, stick, and still be acceptable even if not completely accurate. The two terms you use have more of a positive connotation (positive from the point of bragging) whereas the S word would definitely drag the guy down, IMO.

#113 Longterm on 06.26.21 at 2:57 am

Hilarious. Nearly a year and a half and ‘Type A alpha achievers’ still haven’t figured out what life is all about and want you all to come back to their sand box.

#114 Gfgf on 06.26.21 at 5:27 am

Hybrid! Get used to it garth. Face time a thing of the past.

#115 westcdn on 06.26.21 at 7:20 am

I have Metis bloodlines and maybe some Neanderthal and definably Paleo. I tried to research my Umpherville history but they didn’t write anything down (cursed lack of schools). My best guess is they originated in Churchill, Manitoba and followed the North Saskatchewan River. The English and French fought over Churchill and it changed hands. My feeling is the mother’s side grandfather was mainly French – no question about my father’s side.

So lets move to today. I see financials and telecoms but I am more interested in buying in enterprises which get things done. I just bought some IBG – a risk but I like their space. Energy is still on my radar.

I have problems with my smart cell while it close to my wifi. So I turned the wifi connection off and sit in a lot behind my house to make calls – won’t work for winter plus the ant hills are murder. I call my bank to make a withdrawal from my RIF (did that to save fees). The answering gal says we can not authorize over your smart phone. She says download our app but I not keen on that. I will turn on my wifi connection and try again Monday.

#116 Toronto_CA on 06.26.21 at 8:32 am

“(before I could I just pop out of my office and ask one of the team members a quick question, which now requires a phone call or long email)”

Addressing this point: I think Teams is super easy and quick to grab someone for a quick question; our offices are spread throughout the UK and Europe/ME/Asia so unless I need someone in London it doesn’t help me to be in the same offices.

If your quick question requires a long email, then don’t write the email. I’m not sure why a quick Teams video chat is longer/harder/worse than a quick conversation; as well the inperson conversations can lead to a ton of wasted time hunting people down or catching people when they’re in the middle of something important. Teams respects people’s time.

Our set up works very well. Can’t speak for other places, or smaller places that don’t invest in WFH tech.

#117 Jacquie on 06.26.21 at 8:35 am

Apartments are accommodation. They house people, not displace them. REIT rentals are professionally-run and long-term. It’s the amateur LLs who mess with people’s lives. Please tell us that was a joke. – Garth

Not a joke. Increasingly, real estate is being seen as an investment which, like anything else, requires profit to be considered successful. In cases of large apartment buildings owned by REITs, tentants are becoming renovicted as a way to raise rents beyond what current tenants can afford (but this achieves the goal of profit-making).
There are plenty of articles from legitimate news sources that discuss this growing concern.

I currently live in a large apartment building, professionally managed and SO FAR have been satisfied with my living situation personally. And I’m aware amateur LL’s are well known for slimy practices such as renovictions, and “family” moving in to displace tenants, and other legal but underhanded practices that are not done in good faith. But I’m increasingly aware of what’s happening in other cities where corporate ownership changes hands as one rental company buys out another, or buys buildings from another company.

This is well-known among not only tenant activist groups but also the tenants themselves, who are in the most precarious position. Some cities have become aware of it and are taking (hopefully concrete) action to stop it.

But the fact remains that for investors to see gains on their REITs, companies are incentivized to make profit to the point where the residential real estate corporations who are part of a REIT will use whatever means necessary to evict tenants and raise rents.

Interestingly, those on Bay Street “were not aware” that tenants of InterRent REIT were facing risk of homelessness or eviction because of unaffordable rent hikes in one of the properties owned by InterRent REIT (https://sub.media/video/east-hamilton-rent-strike-crashes-bay-street/).
Just because people plead ignorance to the issue doesn’t make it any less predatory.

Considering this blog promotes renting, I’m surprised this issue is not more discussed. But it always seems to promote the investor perspective, so maybe that’s why.

https://www.cbc.ca/news/canada/renovictions-housing-shortage-1.5400594

https://acorncanada.org/silhouette-east-end-rent-strike-brings-light-hamilton-housing-issues

https://www.thestar.com/vancouver/2018/11/29/advocates-urge-renters-to-resist-renoviction-buyouts.html

https://www.thespec.com/news/hamilton-region/2021/05/07/hamilton-tenants-renovation-evictions.html

#118 earthboundmisfit on 06.26.21 at 9:05 am

Covid did not create WFH. Having been part of the first cohort of “telecommuters” in the late 70s, my working tools were a car phone (with the receiver hanging from the dashboard) a dictaphone, a Polaroid camera, and a thermal fax machine. No desktop, no laptop, no email and no cell phone. The best part was being able to participate in child care, while my spousal unit completed a Masters and a PhD.

#119 Dharma Bum on 06.26.21 at 9:58 am

#7 Summertime

‘Why would one pick up a moldy suburb shack in favor of much cheaper fantastic places in southern France, Italy or Spain?”
——————————————————————————

Europeans.

#120 Dharma Bum on 06.26.21 at 10:11 am

#19 The Jaguar

Poor Dharma Bum’s kid won’t have anyone to prosecute if this keeps up. Lots of watchful eyes on hoods.
—————————————————————————-

Haha! Luckily, he got out of the Crown Prosecution racket just in time. He was recruited to the other side about a year and a half ago. Now, the lowlife that loiter around downtown Red Deer, deadbeat dads, divorced mothers that kidnap their children, and good men that are denied custody are his best customers!

#121 Cici on 06.26.21 at 6:03 pm

#36 Dolce Vita on 06.25.21 at 3:29 pm

“…WFH will come to a pitiable end sooner than most think.”
____________________________________________

Yes, I believe you are right. About three weeks ago my employer told us no worries regarding WFH or hybrid model. A week later they did a 180 and said we were due back in the office at the beginning of September latest. WFH will be by special request only, is subject to approval, and will have to be specific, set days to ensure that it does not conflict with other office/meeting schedules.

Most of my team is itching to get back to the office anyways. WFH worked out well at first, but a certain fatigue does set in pretty fast and you really do become less productive despite your best intentions.

Definitely not looking forward to the commute though, just because driving in rush-hour traffic bites! And because I’m a cheapskate who knows the price of gas is going to explode right around labour day, and onward. Note to self: find someone with an electric vehicle to carpool with ;-) Oh, and start getting up earlier and showering everyday again too… oops!

#122 Cici on 06.26.21 at 6:14 pm

#116 Toronto_CA on 06.26.21 at 8:32 am

Teams is better than nothing, but not very reliable when it comes to attendance status. If I’m at my desk but working on paper or reading/researching for more than one minute, my status goes to absent and it looks like I’m not there. I usually don’t even notice, because I haven’t stepped away… so people think I’ve been gone when I could have been reachable.

However, some people have found a way around this, because their status is always green, but you can never get in touch with them or even get an answer out of them.

So, when you really need to track someone down, it can be pretty inconsistent and unreliable.

#123 jess on 06.27.21 at 11:38 am

93 Jacquie on 06.25.21 at 9:28 pm
i see your point-Coinciding with the rise of REITs, and the increasing number of units under their control, is the consistent losses of affordable rental stock.
articulated in Ottawa-based InterRent REIT’s 2014 annual report, which lists

house certain types of people ?“removing undesirable tenants” and replacing them with “more desirable tenants”

https://acorncanada.org/leveller-rein-reits-tenants-demand-action-against-real-estate-investment-trusts

and then these types of exploitation
-owns more than a dozen apartment complexes that have been cited for hundreds of code violations and, critics say, provide substandard housing to lower-income tenants.
The loans the business’s biggest purchase in a decade. The deal, first reported by Bloomberg, also ranked among Freddie’s largest ever.
https://www.wnycstudios.org/podcasts/trumpinc/episodes/trump-inc-freddie-mac-kushner-loans
—————————

differences
risks to REITs that investors need to know before making any investment decisions.

What Are the Risks of Real Estate Investment Trusts (REITs)?
https://www.investopedia.com/articles/investing/031915/what-are-risks-reits.asp

inflating a key metric
https://www.dowjones.com/scoops/sec-open-investigation-american-realty-capital-properties/
https://www.sec.gov/enforce/33-10793-s

“REIT managers and their professionals have an obligation to tell the truth when making disclosures to shareholders about their compensation,” Marc Berger, director of the SEC’s New York office, said in a statement.

– benefitted themselves greatly at the expense of shareholders,” he added.

https://www.reuters.com/article/us-sec-american-realty-settlement-idUSKCN1UB2JO