Cookin’ it

Susan wants a kitchen. “My cabinets came on the Ark,” she says. “The dishwasher squirts and the countertops are made from some kind of hideous plastic. This reno is not an option.”

To pay for the big overhaul she needs about eighty grand. The good news is she can afford it. She and Todd currently have over $400,00 in their joint non-registered account (the only kind couples should set up together), plus the little house in Nanaimo is worth twice that amount, now debt-free.

“Make it happen,” she told her advisor.

But how? What’s the best way to pay for new appliances, tile flooring, fancy raw concrete counters and a killer hood fan unit? Do they harvest gains from the pandemic-pumped investment portfolio? Cash in non-performing assets? Borrow?

Well, here’s some stuff they need to consider…

First, leave the registered assets alone. RRSPs can’t be cashed in without adding the amount taken being added to annual taxable income, so that sucks. Besides, once you remove retirement savings money the contribution ‘room’ is gone forever. It cannot be replaced – unlike with a TFSA.

But raiding the tax-free account is also a bad long-term strategy. TFSAs are money machines. They should be fed fully each year, stuffed with growth ETFs and left to swell in all their tax-free bloating glory. The idea is to have as inflated an account as possible by retirement since the income stream it throws off isn’t counted as income and won’t push a retiree into a higher tax bracket nor bring a clawback of government pension pogey. This is not the place to go for a fancy oven, a trip to Cuba or a new Softail.

So what to sell, if the non-registered portfolio is raided? Funds that have leapt in value and created a nice capital gain, or fixed-income assets like a bond ETF that just sit there?

Well, remember balance. This might be a good time to rebalance an account that has overweighted on the growth side thanks to hyperventilated stock markets. It’s not the time to be lightening up on fixed-income stuff that might look unsexy and useless. That would remove some valuable portfolio insurance and cause pain when the next (inevitable) correction arrives.

As for harvesting capital gains, be aware of the tax. Half the profits are tax-free and the other half added to income (with a joint account that could possibly be split between you) and taxed at the personal marginal rate. So the highest cap gains rate would be a bit over 25%, but only 1%ers  pay that. For most people the rate is a modest 15%, which means you keep 85% of the growth.

But wait. There’s an election coming. Then a Trudeau romp. Then a budget. And more tax. Including, many fear, a hike in the capital gains tax inclusion rate (maybe to 75%). If that’s a possibility, Sue and Todd might be wise to take those cap gains in 2021 instead of waiting until Luigi and the boys can build the new eatery early next year.

Okay, so there’s another option. Borrow.

Maybe these people, with $800,000 equity in their home, would be smart to leave the investment portfolio in place and let the house finance its own kitchen. After all, that should increase the long-term worth of the real estate – basically paying for the reno with enhanced intrinsic value. Sound reasonable.

These days loans are still cheap. A home equity line of credit is available for prime plus a half point and a five-year mortgage is less than 2%. Given the fact financial assets have been growing at a double-digit rate in 2021 and even delivered more than 7% during tormented 2020, why cash some in when money is available at the rate of inflation? Huh?

Besides, if you borrow it’s maybe even possible to save tax. For example, pull a hundred grand out of home equity to put into the non-registered account, creating a tax-deductible borrowing. Then pay for the reno next year with portfolio money. The interest break stays in place. The borrowing is cheap and deductible. The long-term investments remain on the job, growing. The house is worth more. Sue gets her spiffy new kitchen.

Lesson: wealth brings more wealth. Life isn’t fair. Deal with it.

About the picture: “These are Basil and Wally,” writes Paolo. “Basil is an 8 month old Golden Retriever and Wally is a 6 year old Greater Swiss mountain dog rescue. They are best friends, and when together, they rarely stand still for longer than a moment. I am in lovely Bologna, Italy for a few months, so I really miss having them around. It can truly be said that dogs are a human’s best friend. Thank you Garth for all of your wisdom and humor. Reading your blog is one of my daily pleasures an it keeps me connected to Canada. All the best!”

124 comments ↓

#1 Polozified on 07.12.21 at 1:19 pm

The rebranding of the “second mortgage” to the “home equity line of credit” is one of Canadian marketing’s modern success stories. Almost as great as “Canadian rapeseed” to “Canola”.

Different animals. – Garth

#2 Humbled & Broke on 07.12.21 at 1:24 pm

Everybody has drank the debt-bomb koolaid.

It all works out until some big bank honcho like some Wells Fargo nimrod type in Canada pulls the credit alarm pin, and it just don’t work no more.

I’m long on popcorn at this stage of my portfolio strategy.

#3 Lefty on 07.12.21 at 1:42 pm

When I read statements like ‘the income stream it (TFSA) throws off isn’t counted as income’, I always mentally append a ‘for now’.

Yes I am a cynical GenX. I feel the benefit calculus will change when it comes time to draw down my beloved TFSA.

Nope. Contributions are made with after-tax income. This will not be taxed again. – Garth

#4 Brad on 07.12.21 at 1:46 pm

Thanks for all of your insights Garth. I was shocked to hear about your flag being stolen. I’m not on social media anymore so it came as a surprise that people see our nations flag as a negative symbol. Everything you do is a public service, we need more people like you. I wish you could be our prime minister but I realize Canadians are far too mixed up right now to realize the good that you would do. Thank you for all that you have done, and thank you for continuing to do what you do.

#5 kommykim on 07.12.21 at 1:51 pm

Kitchen reno costs are like women’s clothing prices: Ridiculously inflated.

#6 TurnerNation on 07.12.21 at 2:00 pm

Economic and Social lockdowns -Back to normal soon guys! Think rolling global lockdowns till 2022-23 minimum as the world gets re-worked.

.Barbados reinstates 11PM-5AM curfew for 2 weeks starting from Tuesday; no social gatherings such as fetes allowed during this time;
indoor gatherings capped to 100 persons; no spectators at sporting events
https://twitter.com/KevzPolitics/status/1414346061154562050

.Dutch shut night clubs and halt festivals, after infections soar sevenfold(dutchnews.nl)


— Science in Kanada:

https://www.saltwire.com/atlantic-canada/news/ns-doctor-says-colleagues-concerned-with-covid-restrictions-being-muzzled-by-province-regulatory-body-100610397/
“The doctor spoke candidly about his concerns, commenting on the uncertainty around COVID vaccine and claiming there was no scientific basis to shut down schools temporarily across the province in May. He implied Dr. Robert Strang had acquired too much power and was unwilling to give it up.
Five days after the program aired, the health authority removed him from his job as top ER doctor in Cape Breton”
“He said he knows of several doctors who have been investigated by the health authority and the college for raising concerns about COVID policies.”


— Latest science WIP:

.Thailand decides to mix Astrazeneca & Sinovac as cases spikes (bbc.co.uk)

#7 Ken on 07.12.21 at 2:08 pm

People pay way too much money on renovations, for expensive finishes and materials that are probably not justified or required.

#8 From Vancouver on 07.12.21 at 2:12 pm

For the last few weeks, since I heard the story broke out on CTV [Justin’s mouthpiece] and CBC, I’ve been wondering why are the liberals pushing the story with the “mass graves” at residential schools? Seemed like and felt like they are actively trying to instigate discord and issues, and we all know Justin Trudeau is looking for new classes of victims.

So, the fact that this is all a set up by liberals and Justin Trudeau, it’s not in question anymore (in my mind), I think some can read between the lines, nothing gets aired on CTV or CBC without liberal’s approval or more so, without being planted by them.

So, I’ve been wondering what does Justin Trudeau stand to gain from sawing social problems and creating social unrest and divisions? It just didn’t make sense, in someways, it will create problems for them too.

The answer came at or around July 1st… when I saw people stealing, burning, desecrating Canadian flag all over the country, and from that, morphing and graduating into toppling the symbols of monarchy and Queen Elizabeth II.

Then I realized, Justin Trudeau is preparing to push for independence for Canada from England, and start having dreams, just like his father, of becoming the first Canadian president?

Or maybe his artist and immature mind does not go that far and he’s not diabolic, he simply wants to create a diversion for the incoming elections?

#9 Aftred on 07.12.21 at 2:15 pm

#3 Lefty on 07.12.21 at 1:42 pm

Agreed. We will see a “one time” raid on the TFSA in the next 10 years.

#10 Dr V on 07.12.21 at 2:23 pm

“Besides, if you borrow it’s maybe even possible to save tax. For example, pull a hundred grand out of home equity to put into the non-registered account, creating a tax-deductible borrowing. Then pay for the reno next year with portfolio money.”

I like it. make it so.

#11 BillyBob on 07.12.21 at 2:28 pm

Nope. Contributions are made with after-tax income. This will not be taxed again. – Garth

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

Tons of examples of after-tax income being taxed again multiple times, tons of examples of policy reversals over the years.

If there were ever something where “never say never” would apply, surely it would be a hopelessly-indebted Liberal government looking for tax revenue? The same one that cut TFSA limits because of their “unfairness” and only wants to promote equality and diversity and whatnot by spending the country in annihilation?

With respect, I am less sanguine than you that TFSA’s will remain “TF” forever and ever, amen. But they certainly are the best vehicle going at present.

#12 Sail Away on 07.12.21 at 2:31 pm

For your viewing pleasure, here is a comprehensive Model 3 Tesla review:

https://insideevs.com/features/519394/tesla-model3-extensive-ownership-review/

Hope to see you Tesla-ing!

#13 Former Navy Chief on 07.12.21 at 2:43 pm

#4 Brad

“I wish you could be our prime minister but I realize Canadians are far too mixed up right now to realize the good that you would do.”

I fully agree with you. A no-nonsense Prime Minister prioritizing fiscal responsibilities is exactly what Canada needs right now.

The average citizen would do well to think in terms of priorities like a military person:

#1: Mission (dig ourselves out of our enormous national debt and deficit).
#2: Team (the people of Canada, of course).
#3: Self (finally, what’s in it for me and my family).

Unfortunately the average person is too self-centered and selfish to think in those terms.

#14 Dolce Vita on 07.12.21 at 2:50 pm

Don’t let your guard down Canada on vaxing.

Noticed it over the past week a downward trend. Each data point on the chart is a 7-day average, red line is the Trend:

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

As of yesterday Canada, you are:

79% first dose,
48% second dose vaxd

Still a ways to go against Delta in second dose vaxing.

The UK Health Minister reckons they will see 100K/cases per day in the next few weeks and it is all Delta. They are not the only ones with exponential case growth:

https://ourworldindata.org/explorers/coronavirus-data-explorer?zoomToSelection=true&time=2020-03-01..latest&pickerSort=asc&pickerMetric=location&hideControls=true&Metric=Confirmed+cases&Interval=7-day+rolling+average&Relative+to+Population=true&Align+outbreaks=false&country=GBR~ESP~PRT~CAN~ITA~DEU~NLD~FRA~GRC

—————

Get 2 doses vaxd and prepare Canada, Delta will be coming your way soon enough. Enjoy the lull for now I say.

I like it Garth when you write about 1st World problems on your Blog.

#15 My Body My Choice on 07.12.21 at 2:59 pm

Next big medical-stock-investment breakout: psychedelics.

– MDMA to treat PTSD
– psilocybin to treat Depression

Medical trials underway by several companies in Canada, the US, the UK and elsewhere. Very promising results so far – micro-dosing psychedelics are proving effective where old-school pharma has failed.

Canada’s front runner is a company called NUMI. They have a license from Health Canada, also labs, testing, trials, clinics, hiring. Stock is starting to take off.

There’s also a psychedelic ETF in Canada: PSYK.

Still in the early stages but massive potential. I’m not involved in any of these companies, just have a small number of shares for a little excitment.

On Youtube, check out “The Psychedelic Investor”. He runs a good show with lots of info.

#16 Dogman01 on 07.12.21 at 3:04 pm

Inflation will be chronically under-reported.

Bank of Canada Is “Discrediting” Its Own Inflation Research, Puzzling Economists
https://betterdwelling.com/bank-of-canada-is-discrediting-its-own-inflation-research-puzzling-economists-nbc/#_

Inflation helps people who owe money.
Low Interest rates help people that owe money.
Canadian Governments owe a lot of money. Canadians are deeply in debt and owe a lot of money.
Interest rates are supposedly governed by rules based people paying attention to Inflation.
Our government with MMT can just print, they no longer need to have a higher interest rates to attract private Bond money.
Printing causes Inflation and allows them to keep interest rates low; they want inflation and low rates but they have to hide the Inflation and obscure what Inflation does to wages.
Therefore:
– Inflation will be chronically under reported but will still be quite high for a long time.
– Wage earners will be destroyed, as wages will not rise like real inflation.
– Asset prices will rise faster than Inflation, the Bond market is much larger than the equity market and money will die in the Bond market so it all has to find assets. – those with assets are the only ones that matter anyway.
– The Wage earning masses will be fractured and distracted with the hope as a class they will not “look up” and not notice the economic “take-down” occurring. (just like they have not noticed the last 40 years of Globalization)
If you work for a living and as yet have few assets -” It’s a big club and you ain’t in it”

#17 ElGatoNerodeYVR on 07.12.21 at 3:08 pm

Borrow to invest is tricky because one must generate something the CRA defines as “Income” which is NOT capital gains. Most so called “Yield ” funds generate their distribution out of Capital Gains and ROC ( which basically has 0 tax value and it leads to more cap gains down the road) .
Out of 5 advisors I talked to 4 didn’t understand this at all and one I think faked it, even when presented with clear details out of Morningstar, or maybe they just realized it is basically impossible to generate safe true dividend/ income , 3%-4% close to the rate of borrowing from say B2B bank so you are left with the tax deduction only ; doesn’t make sense from a risk reward perspective unless you are bored and the few extra k are nice to have.
As far as borrowing against your home to invest , yeah …I don’t know many people who slaved and sacrificed for years to pay off their mortgage be willing to take that risk.
Borrowing against your home equity to redo the kitchen same thing , one’s paid off home is the best insurance against all unexpected things in life ,you either have the money to do it in savings or you don’t.
I would rather suggest to start saving and cutting down on expectations, 80K is a lot when you don’t have the money on hand ,not even an emergency fund of 20K in a savings account by the sound of it.

#18 Sail Away on 07.12.21 at 3:09 pm

Re: borrow to invest using HELOC

Yes. We weren’t going to do this, but after running a few projections with the low rates, just couldn’t resist, so joined (I believe) Dr. V’s wife in this maneuver.

It seemed expensive to set it up… around $3k if I recall, and at 3.3%. This rate will almost certainly increase.

Simulations show this could return, minus credit line and carrying costs, somewhere around $2M over 16 years (when I reach 65).

In a worst case scenario, we’ll just pay it off. No harm, no foul. May as well try every available financial tactic. To do otherwise would be less than opportunistic… almost complacent.

#19 Shortymac on 07.12.21 at 3:13 pm

Yeah money is cheap, I’m trying to convince my parents to sell their place (suburban philly, I’m an immigrant) or take out a HELOC and buy their retirement house in the Poconos now instead of waiting for Mom’s retirement in November.

I noticed there is a slow down in the Poconos listings so I’m fairly convinced they could make so bully cash offers on a place that isn’t turn key.

Meanwhile, the local market is still warm and they could get an easy 400k USD for their place. My Dad doesn’t believe me that there are people in the US who will let them have a long closing or will wave the inspection on their place.

If they do HELOC my brothers would just rent the house from my parents to cover the payments, utilities, and taxes. $1200/mon for 3+2 bedroom house is a steal and more than enough room for young bachelors.

#20 Summertime on 07.12.21 at 3:19 pm

Borrow.

Yes, that is a great idea.

As the destruction of currency is pretty much guaranteed thanks to the incompetent lairs at BoC.

#21 ElGatoNerodeYVR on 07.12.21 at 4:05 pm

#16 Sail Away on 07.12.21 at 3:09 pm
Re: borrow to invest using HELOC
=====
Lots of money you forecast basically out of your tax savings yearly as the 3.3% rate is basically what a safe’ish dividend funds/ REIT / stock would pay in qualified dividends , or else you are taking lots or risk ( see my previous post, capital gains are not valid for the tax write-off) or count that you can generate for 15 years only 2% average dividend, the rest in cap gains and the CRA will let you get away with it ….possible I guess.
3K and 3.3% is quite high for a secured line , B2B will give you close to 4% at today’s rates secured by your investment portfolio with the borrowed money.
Either way, wish you all the best in the endeavor and keep us updated, some might follow in your steps.

Interest on money borrowed to invest in a balanced portfolio is indeed deductible from taxable income. Happens daily. – Garth

#22 Kitsch...en on 07.12.21 at 4:23 pm

Makes me think of one of those recent Real Estate pumping pieces about sold houses in the Globe.

This one was a $2.5M detached 1540 sqft house from 1923 house with 2 outdoor parking spots in the driveway (no garage) so you can scrape ice off your car for 6 months of the year for $2.5M.

It was noted that this $2.5M home has an Irpinia kitchen. Not sure if it is a V8 or a V10 or if it is supercharged. But apparently it impresses the ladies.

Listing agent was quoted to say something like “Irpinia kitchens are normally in $5M homes!”

Just FYI – if you spend $100 per take-out meal, and buy 3 meals per day, you can eat for 25 YEARS for the price of this house…with Irpinia kitchen. 26 years if you include land transfer tax.

Forever if you invest and get 7% annual return on that $2.5M

#23 Bill in BC on 07.12.21 at 4:35 pm

#11 Sail Away
For your viewing pleasure, here is a comprehensive Model 3 Tesla review:

https://insideevs.com/features/519394/tesla-model3-extensive-ownership-review/

Hope to see you Tesla-ing!
——————————————————————
My Tesla is also two years old and have had no problems whatsoever. My only regret was not getting a lighter colour. Black was the default colour back then (it’s white now) and I cheaped-out. Looks really beautiful for about 2 days after washing, then not so much. Even after two years, I still look for excuses to drive it (I’m retired)

#24 safe money? on 07.12.21 at 4:39 pm

the only thing “Cooking” are variable rate mortgages…

Variable mortgage rate hits record low at sub-1%

https://www.bnnbloomberg.ca/variable-mortgage-rate-hits-record-low-at-sub-1-1.1627936

Garth just isn’t seeing the big picture.

Inflation in Canada 3%+ and going higher
Inflation in the US 5%+ and going higher

and somehow, the threat of rising rates to maybe 2% 5 years from now should solve the problem.

Central Banks and Governments are PURPOSEFULLY STEALING YOUR MONEY THROUGH INFLATION.

it’s the only way they can solve their debt problems.

own physical assets.
own stocks.

do NOT own Bonds.

borrow to invest.

your government and central bank are giving you no other option.

#25 Travelbug on 07.12.21 at 5:10 pm

My hubby and have been following your advice for the
last few years – thank you so much – and we have built up a nice portfolio. We are now in the process of adding a sun room to our house and have taken out a Heloc to finance it rather than selling some of our portfolio. If we use these funds from the Heloc to buy more investments, is the interest tax deductible even if we sell some stuff out of the portfolio (that has not been doing that great) at the same time? Or is there a certain time period required by law between borrowing/investing and spending? I definitely can see the sense in taking out a Heloc now for spending next year. Thanks again for your advice.

#26 yorkville renter on 07.12.21 at 5:22 pm

when banks loan money for free, take it.

#27 cuke and tomato picker on 07.12.21 at 5:23 pm

So people feel that the capital gains will go to 75 per cent
after the next election. Will the liberals make this part of their campaign or just spring it on us after elected?

#28 Felix on 07.12.21 at 5:27 pm

“Cookin’ it” …..?

Hmm.

Guess it’s time to remind all the low IQ dog fans out there to not be stupid idiots and trying to kill their dogawful mutts by cooking them in their cars this summer.

Yet again. Every summer.

https://www.blogto.com/city/2021/07/police-charge-vaughan-mills-shopper-leaving-dog-sweltering-car-hours/

Don’t get us cats wrong.

It is perfectly reasonable to want to exterminate a canine. They are a useless sub-species that contributes nothing.

And actually cooking dogs in culinary fashion is quite acceptable, and there are many excellent recipes that you can use.

https://recipes.fandom.com/wiki/Dog_Meat_Soup

https://davidbarrie.typepad.com/david_barrie/2008/01/whats-on-the-me.html

But to leave your dog in the car to cook, and die, is just stupid and cruel.

Pretty much sums up the intellect of the average dog owner.

#29 wallflower on 07.12.21 at 5:48 pm

LUVING all the doogie profile shots.

#30 Faron on 07.12.21 at 5:56 pm

Potentially of interest (although outside of the scope of Garth’s column today):

A conservative’s opinion on climate change. I figure this might be an interesting read for some here.

https://www.telegraph.co.uk/news/2021/07/11/do-not-tackle-climate-change-now-will-get-bad-radicals-will/

Essentially, if climate change isn’t addressed, your aunty Faw will come ‘n getch’a.

Conservatives will need to find an excuse or a mechanism for changing their tack on climate change and the increase in climate-related disasters as those disasters become more and more urgent and begin to affect bottom lines. Perhaps this is one of the ways. Me, I’ll take it however it comes.

Cheers,
Faron

#31 Ponzius Pilatus on 07.12.21 at 5:57 pm

80 k for a kitchen Reno?
My first house on a 60 x 120 lot was 45k.

#32 AntMan on 07.12.21 at 5:59 pm

I know watching BNN is verboten on this blog but I do it anyway. Just thought I’d mention Brian Belsky gives Raymond James two thumbs up: https://www.bnnbloomberg.ca/video/earnings-will-drive-majority-of-stock-market-gains-through-year-end-bmo-s-belski~2240374

#33 David Greene on 07.12.21 at 6:00 pm

BNN-Bloomber: Employers to hire more contract workers as economy emerges from pandemic: Poll

https://www.bnnbloomberg.ca/employers-to-hire-more-contract-workers-as-economy-emerges-from-pandemic-poll-1.1624591

=========================
$80,000 for a kitchen reno? Geez. I hope neither of them ever gets even a flu.

#34 NSNG on 07.12.21 at 6:03 pm

The borrow to invest scam must have been invented by a banker.

So you borrow at 3% to invest. The nice banker at the bank is allowing you to borrow *your own equity* at the generous rate of 3% so that you could sit down at the table and gamble your own money. It’s OK, you say, it’s tax-deductible. So taxpayers are picking up some of the tab. It’s not all on you to borrow your own money.

Here’s the thing. It’s not the individual problem here, it’s the big picture.

The banker is making 3% with almost zero risk. If you lose that money in the markets, they will take it out of your house. Even if they lose money on the deal it’s a write-off against past/future profits.

So let’s assume they find enough clients to lend $1 billion. They get their 3% from you and/or taxpayers. You then need to go out and earn 6% just to tie them at their game. If you earn less, then their $1 billion is growing faster than yours. Over the long term, you are making them rich at your expense.

You say, “No problem. I’ll earn even more than 6% over time.” There are two flaws in that argument. 1. As the return goes up, so does the risk. The more you gain, the greater the chance of loss. The banker still gets his stable 3% though. 2. What is to stop the banker from taking the money you are paying him and investing in the same products? The safer the high return you have found, the greater the chance the big boys will jump on it and exploit it and/or create something to undercut the return.

“I’ll just invest in bank shares.” Ha! Yes, you put your 1000 bank shares in your account and collect your juicy dividend. The nice banker at the bank has 1000 in bank share options vesting *every quarter* paid for with your 3%. Good luck keeping up with the executive suite too.

This is another example of people thinking about themselves first and not looking at the bigger picture damage they are doing.

There is a reason the banks own all the tallest buildings in all the downtowns.

Credit is the problem, not the solution.

#35 Km on 07.12.21 at 6:07 pm

80k, that better be some spectacular reno .

#36 Penny Henny on 07.12.21 at 6:09 pm

80 grand is a lot to spend on a kitchen reno even if the house is worth 800 thousand. Of that 800 thousand the land is probably worth half of that or more. So imagine spending 80 grand on a house worth 400k or less, seems silly.
Best bet, get an Ikea kitchen and some nice upgrades for 25k. I did mine myself for well under 10k. Granite too!

#37 When the Whip Comes Down on 07.12.21 at 6:12 pm

That’ll be some kind of reno. 80 grand? Our appliances were 10k, cabs/counters 15k installed. Flooring 1k.

#38 Ottawan on 07.12.21 at 6:13 pm

Lesson: wealth brings more wealth.

The cycle of poverty is even more powerful. Those seeking to escape it need financial literacy, thriftiness and luck.

#39 Ponzius Pilatus on 07.12.21 at 6:13 pm

I think the Lower Mainland has now been under a “heatwave” for about 3 weeks.
It started out with unbearable 40 degrees for a few days.
And now it’s around a comfortable 25 degrees.
Still, many trees are shedding their leaves, and I have to water my small veggie garden twice a day.
I just can’t imagine living living in the South of the States, or Mexico.
Sure there’s air con, but going outside must be suffocating.
Thats why people like the temperate climate in Vancouver and Vancouver Island.
But here it’s getting hotter too, and we need to prepare.
AirCon running on electricity may do the trick, but it may have to compete for power with all the new EVs coming online.
So get ready, plant some trees, get rid of the F-150 (don’t buy the electric one) and learn to conserve energy

#40 Yuge Tesla Fan on 07.12.21 at 6:14 pm

#11 Sail Away on 07.12.21 at 2:31 pm

For your viewing pleasure, here is a comprehensive Model 3 Tesla review:

https://twitter.com/i/status/1414356539826180097

#41 Nostradamus on 07.12.21 at 6:19 pm

Amazing how a $1500 countertop can become a $80k renovation.

#42 G.M. on 07.12.21 at 6:21 pm

Gypsy month is getting rebranded.

Any suggestion for the new name?

#43 Mean Guy on 07.12.21 at 6:28 pm

#33 NSNG

There is are so many fallacies and non-sequiturs in that diatribe I don’t even know where to begin.

So I think I won’t bother, they’re obvious anyway.

#44 Yukon Elvis on 07.12.21 at 6:28 pm

#35 Penny Henny on 07.12.21 at 6:09 pm

80 grand is a lot to spend on a kitchen reno even if the house is worth 800 thousand. Of that 800 thousand the land is probably worth half of that or more. So imagine spending 80 grand on a house worth 400k or less, seems silly.
Best bet, get an Ikea kitchen and some nice upgrades for 25k. I did mine myself for well under 10k. Granite too!
+++++++++++++++++++++++++++++++++++++

Paint the cupboards. Get new knobs. And a cutting board. Hundred bucks.

#45 Leo Trollstoy on 07.12.21 at 6:29 pm

#30 Ponzius Pilatus on 07.12.21 at 5:57 pm

You’re also a lot closer to death than Susan and Todd

And inflation adjustment is a thing

#46 dont fear inflation on 07.12.21 at 6:31 pm

inflation is kinda good…tomatoes costing a bit more? your investments are doing better

#47 Mean Climate Change Guy on 07.12.21 at 6:34 pm

#29 Faron

I couldn’t really care less about conservatives, but the stance they should take is obvious.

Yes climate is changing, as it always has.

If it was caused by human activity then we would have to reverse all the human activity of the past 1,000 years or so (in the next 10 according to the fear mongers like AOC).

That is impossible of course, we don’t want to go back to living like cave men, so we should just do what we can to reduce pollution as much as we reasonably can, because we like nature and clean air and enjoy it when it’s protected.

So let’s do as much as China does in that respect, and personally, we should all aspire to have a carbon footprint less than Al Gore or Leo DiCaprios.

So no more 20,000 sq ft mansions and private jets people.

No, we probably can’t do anything about it

#48 Nonplused on 07.12.21 at 6:40 pm

#3 Lefty on 07.12.21 at 1:42 pm
When I read statements like ‘the income stream it (TFSA) throws off isn’t counted as income’, I always mentally append a ‘for now’.

Yes I am a cynical GenX. I feel the benefit calculus will change when it comes time to draw down my beloved TFSA.

Nope. Contributions are made with after-tax income. This will not be taxed again. – Garth

———————————

Ya I’d be more worried about further reductions in the TFSA annual limit, who knows maybe one day even to zero followed by a forced conversion to a regular account and then shutting it down. There is more than one way to skin a cat so it could be done without making it look like they went back on any previous promises.

So to be clear, even if they close down the TFSA program and force everybody out, I don’t think they will tax any gains in the account to that date. But I think they may phase it out of existence. We already know Trudeau doesn’t like it and thinks it is “for the rich” even though for really rich people it is an accounting error. Freeland probably doesn’t like it much better. But who knows, it is just speculation.

Nobody is now, or ever, cancelling the TFSA. Get a grip, people. – Garth

#49 Ponzius Pilatus on 07.12.21 at 6:41 pm

Can someone please tell me that Branson’s “trip to the edge of space” was just a cruel and expensive joke played on the idiots who where cheering him on.
Frickin hypocrite.
Now go and save the Rainforest.

#50 NSNG on 07.12.21 at 6:50 pm

#41 Mean Guy on 07.12.21 at 6:28 pm

If you think you are going to beat the bank at the debt game you are a fool.

You may get rich but your grandchildren will be slaves.

#51 Nonplused on 07.12.21 at 6:51 pm

#29 Faron on 07.12.21 at 5:56 pm
Potentially of interest (although outside of the scope of Garth’s column today):

A conservative’s opinion on climate change. I figure this might be an interesting read for some here.

https://www.telegraph.co.uk/news/2021/07/11/do-not-tackle-climate-change-now-will-get-bad-radicals-will/

Essentially, if climate change isn’t addressed, your aunty Faw will come ‘n getch’a.

—————————————-

Well, climate change or not, this might be our more pressing problem:

https://boereport.com/2021/07/12/canada-the-u-s-at-risk-of-an-energy-crisis-opec-energy-security/

I’m sure the Chinese are very appreciative of our efforts to make more carbon based fuels available to them at low prices.

#52 Sail Away on 07.12.21 at 6:52 pm

#33 NSNG on 07.12.21 at 6:03 pm

The borrow to invest scam must have been invented by a banker.

So you borrow at 3% to invest. The nice banker at the bank is allowing you to borrow *your own equity* at the generous rate of 3% so that you could sit down at the table and gamble your own money.

——–

Hey, if you’re offering 3% loans, I’ll take all the cash you have.

And… I’ll gift you a bottle of manager’s dram Talisker to boot!

#53 tbone on 07.12.21 at 7:02 pm

Buy bank stocks and collect the dividend , it really works out ok .

#54 ElGatoNerodeYVR on 07.12.21 at 7:04 pm

Straight from the CRA website, doing different is a risk one must decide to take,hope for a non-audit.
I know that you guys,advisers in general do a mix where you generate 2% in income and 5 % in capital gains as an average ,however personally I would not feel comfortable with that. To each its own.

“most interest you pay on money you borrow for investment purposes but generally only if you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid ”

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22100-carrying-charges-interest-expenses.html

#55 Rick on 07.12.21 at 7:14 pm

I am hearing a Federal 5% transaction tax on buying and selling of all homes, condos, properties in Canada. Also, a Federal 5% tax on CMHC premiums too. I guess they would put a Federal 5% or higher renovation tax on all properties in Canada if they see more people are selling, buying less property due to the tax.

#56 Sail Away on 07.12.21 at 7:15 pm

#39 Yuge Tesla Fan on 07.12.21 at 6:14 pm

For your viewing pleasure, here is a comprehensive Model 3 Tesla review:

https://twitter.com/i/status/1414356539826180097

———

That’s why you recline the seat all the way when sleeping with Full Self Driving.

#57 Yukon Elvis on 07.12.21 at 7:20 pm

Nobody is now, or ever, cancelling the TFSA. Get a grip, people. – Garth
+++++++++++++++++++
You need to get a grip yourself Garth. They reduced the TFSA contribution with the stroke of a pen. They could tax it just as easily.

Pure paranoia. – Garth

#58 Dina on 07.12.21 at 7:24 pm

#23 When are they going to replace central bankers with a computer or AI. They are pretty well useless and they need to stop costing big salaries for worthless work they do.

#59 IHCTD9 on 07.12.21 at 7:39 pm

#37 Ottawan on 07.12.21 at 6:13 pm

The cycle of poverty is even more powerful. Those seeking to escape it need financial literacy, thriftiness and luck.
———-

It can be done with a plan, decades, and some resolve though. Just a few days ago a poster testified to a half million invested via a minimum wage job over 30+ years. Rich? No, but way better than nothing, and probably be well enough for anyone who could have saved that much never having made more than 15-16/hr.

#60 crowdedelevatorfartz on 07.12.21 at 7:51 pm

@#29 Faron
“Conservatives will need to find an excuse or a mechanism for changing their tack on climate change and the increase in climate-related disasters as those disasters become more and more urgent and begin to affect bottom lines. ”

++++

While I agree that climate change is a concern perhaps lumping all Conservatives in the same pot is a little presumptuous .

I might say all liberals are climate alarmists that become apoplectic if anyone disagrees with them while applauding their Antifa amigos when they add to global warming by burning churches down to their get demands met.

But when you have milksop apologists in the Nations top positions…….
Why not?

#61 crowdedelevatorfartz on 07.12.21 at 7:54 pm

@#46 Perigee Ponzie
“Can someone please tell me that Branson’s “trip to the edge of space” was just a cruel and expensive joke played on the idiots who where cheering him on.
Frickin hypocrite.”

+++

I dont think the Billionaire Boys Clubs is that smart.

I think they just wanted to compare “rockets”.

#62 Hilroy on 07.12.21 at 7:56 pm

#46
“Can someone please tell me that Branson’s “trip to the edge of space” was just a cruel and expensive joke….”

A British Knight who dreamed as a child of flying in space, got to realise it …………. in America.

#63 crowdedelevatorfartz on 07.12.21 at 8:01 pm

@#38 Ponzies Pot Plot
“Still, many trees are shedding their leaves, and I have to water my small veggie garden twice a day.”

++++

Veggies …..Ri-i-i-i-ii-ght.
How’s that “mortgage Helper” plot working out for ya.
FYI.
You’re better off planting bird and bug friendly perennials.
The birds, bees, butterflies, etc etc etc benefit from the soil, nectar, whatever.

Although,
This year I’m only seeing a few wild bees, very few domesticated bees.
Lots of hummingbirds, robins, sparrows ( and sparrow hawks) etc this year.
Buying veggies at the store is way more enviro-friendly for a city dweller.

#64 crowdedelevatorfartz on 07.12.21 at 8:05 pm

A quick question.
If registered investments are liquidated into cash to realize the gains…. but not touched….they are still untaxed RRSP cash sitting in an RRSP account….are they not?

Yes. – Garth

#65 Trojan House on 07.12.21 at 8:05 pm

#6 TurnerNation on 07.12.21 at 2:00 pm

“Thailand decides to mix Astrazeneca & Sinovac as cases spikes.”

This from the CDC: “COVID-19 vaccines are not interchangeable.” https://www.cdc.gov/coronavirus/2019-ncov/vaccines/expect.html

The WHO has also come out today and said the science is not yet there to support the mixing of the vaccines. Docs in Canada wonder why and say it is okay to mix.

Who to believe, who to believe…

#66 NSNG on 07.12.21 at 8:10 pm

#49 Sail Away on 07.12.21 at 6:52 pm

Hey, if you’re offering 3% loans, I’ll take all the cash you have.

says the guy who is ready to cut and run from Canada the minute things turn sideways.

#67 Quintilian on 07.12.21 at 8:10 pm

#23 safe money?
“Central Banks and Governments are PURPOSEFULLY STEALING YOUR MONEY THROUGH INFLATION.”

TRUE

What else can it be called but theft.

Greenspan surrendered the levers of the central banks to the politicians, who in turned tinkered with the machinery of monetary policy.

The end result:

An infinite number of reverse gears and only one forward gear with a very narrow range.

I would be surprised if in our lifetime we will see the bank rate anywhere near inflation, unless of course monetary policy is handed back to the economists.

#68 Ponzius Pilatus on 07.12.21 at 8:12 pm

#58 crowdedelevatorfartz on 07.12.21 at 7:54 pm
@#46 Perigee Ponzie
“Can someone please tell me that Branson’s “trip to the edge of space” was just a cruel and expensive joke played on the idiots who where cheering him on.
Frickin hypocrite.”

+++

I dont think the Billionaire Boys Clubs is that smart.

I think they just wanted to compare “rockets”.
——————-
As far a I am concerned, Bezos and Branson can stuff their rockets up to where the sun don’t shine.

#69 Ponzius Pilatus on 07.12.21 at 8:15 pm

#60 crowdedelevatorfartz on 07.12.21 at 8:01 pm
@#38 Ponzies Pot Plot
“Still, many trees are shedding their leaves, and I have to water my small veggie garden twice a day.”

++++

Veggies …..Ri-i-i-i-ii-ght.
How’s that “mortgage Helper” plot working out for ya.
FYI.
You’re better off planting bird and bug friendly perennials.
The birds, bees, butterflies, etc etc etc benefit from the soil, nectar, whatever.

Although,
This year I’m only seeing a few wild bees, very few domesticated bees.
Lots of hummingbirds, robins, sparrows ( and sparrow hawks) etc this year.
Buying veggies at the store is way more enviro-friendly for a city dweller.
—————-
I do it as a hobby.
Very relaxing.
You should try it.

#70 Sail Away on 07.12.21 at 8:23 pm

#51 ElGatoNerodeYVR on 07.12.21 at 7:04 pm

Straight from the CRA website, doing different is a risk one must decide to take,hope for a non-audit.
I know that you guys,advisers in general do a mix where you generate 2% in income and 5 % in capital gains as an average ,however personally I would not feel comfortable with that. To each its own.

“most interest you pay on money you borrow for investment purposes but generally only if you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid ”

———–

Sure, agreed.

But investing for return is an exceptionally easy portfolio to create; nearly every ETF out there pays some sort of dividend.

#71 TurnerNation on 07.12.21 at 8:24 pm

And so it begins. The global control system rolled out piece by piece. Remember, the Blockchain was built for us. Our DNA – our lives. Papers Pleeze.

.French president mandates special COVID-19 pass for access to all restaurants, shopping malls; orders all health workers to get vaccine shots – AP

—–
If only we’d had a hint…oh it’s right there in the name.
From 11 months ago!

#95 TurnerNation on 08.15.20 at 10:24 am
Perhaps by 2021 the Certificate of Vax ID (COVID) system will be ready? Hey it’s in the name already will you look at that!
Another caste system are they planning – the clean vs. unclean?

#98 TurnerNation on 10.14.20 at 10:44 pm
Man this is moving fast. Here comes the news aka Predictive Programming. Your cell phone tracked.
No more travel until you get the Certificate of V ID

#137 TurnerNation on 10.19.20 at 10:46 am
Remember, you are free to leave at any time.
But ensure your Certificate of Vax ID (COV-ID). Papers pleeze. We have a new Caste system

———————————

– T2 said that he is a Feminist. This poor woman has been reduced to low caste, 2nd class citizen status for the rest of her life. Wear that scarlett letter.
You’ve come a long way, Baby.

https://www.cbc.ca/news/canada/manitoba/covid-19-vaccine-winnipeg-woman-inflamation-risk-1.6096658
“”The only person who has to live with the side-effects is me — nobody else,” she said, adding she’s disappointed she won’t be able to do some of the things fully vaccinated people can.”

#72 Nonplused on 07.12.21 at 8:27 pm

#35 Penny Henny on 07.12.21 at 6:09 pm

80 grand is a lot to spend on a kitchen reno even if the house is worth 800 thousand. Of that 800 thousand the land is probably worth half of that or more. So imagine spending 80 grand on a house worth 400k or less, seems silly.
Best bet, get an Ikea kitchen and some nice upgrades for 25k. I did mine myself for well under 10k. Granite too!

———————————-

That sort of spending often precedes another expensive event: Divorce. Someone can keep the house if they want it (although there are cash implications), especially mom if there are children living there. I’ve seen this more than once. An unhappy spouse will often try and buy their own happiness, but after spending the money discover that that didn’t change anything.

Also it is pretty easy to get to $80,000 if you decide Sub Zero and Wolf products are going in there. You could probably spend $80,000 on the appliances and still come up short.

#73 Nonplused on 07.12.21 at 8:32 pm

For the EV fans out there:

https://www.zerohedge.com/technology/its-time-unplug-hype-over-electric-vehicles

Fact is we barely have places to plug in our air conditioners. Reminds me of a guy who thinks a Jackery is a good backup power supply for his fridge. Yup it is. For about 4 hours. If you don’t open it, it’ll be fine for 4 hours without the Jackery.

#74 Millennial 1%er on 07.12.21 at 8:38 pm

>Lesson: wealth brings more wealth. Life isn’t fair. Deal with it.

You mean, wealth armed with the free advice of a 50 something boomer who provides advice online daily for free begets more wealth

#75 FriedEggs on 07.12.21 at 8:57 pm

Mix a bit of this and you mix a bit of that and you diversify yourself like your financial portfolio. Never mix your eggs in one basket as they say.

And pay attention to the fine print.

#76 Sail Away on 07.12.21 at 9:13 pm

#63 NSNG on 07.12.21 at 8:10 pm
#49 Sail Away on 07.12.21 at 6:52 pm

Hey, if you’re offering 3% loans, I’ll take all the cash you have.

———-

says the guy who is ready to cut and run from Canada the minute things turn sideways.

———-

Guilty as charged.

Of course, my family lived in Venezuela back when it was a happily wealthy country, much like Canada.

Then a real nimrod came to power.

See the theme here?

https://en.m.wikipedia.org/wiki/Economic_policy_of_the_Hugo_Ch%C3%A1vez_administration

#77 Dogman01 on 07.12.21 at 9:14 pm

#69 Nonplused on 07.12.21 at 8:27 pm

Hilarious, the one recently divorced couple I know; they got a “Wolf Stove” last year doing a completely unnecessary reno….I had to look it up at the time to see what could be so expensive.

Reno done six months later marriage done.

#78 Tyberius on 07.12.21 at 9:14 pm

Nope. Contributions are made with after-tax income. This will not be taxed again. – Garth

—————————————————————

Let’s see… I fund both my UN-registered AND TFSA accounts with after-tax income (how else do most people fund these?)
The former is subject to cap-gains tax; the latter is not.

Therefore, the reason the TFSA is not taxed (for now) is NOT because of how it was funded.

T.

Out of context. – Garth

#79 Land of Kings and Slaves on 07.12.21 at 9:18 pm

Hate to tell all you blog dogs – but in these parts $80k for a kitchen reno is pretty normal… $35k for cabinetry, $14k kitchenaide fridge , $15k granite countertops and island, $5k Wolfe gas range, etc… all packaged up by the designers…. yes kings indeed.

what boggles my mind is that it all gets torn out and redone when the place sells…

some people have too much money and time on their hands… thankyou Garth for helping me try to hold onto the little that ends up in my hands.

#80 the Jaguar on 07.12.21 at 9:19 pm

Turner Nation, this one is for you! The Rogue Province continues to go ‘Rogue’!

+++”Alberta will not be following the lead of Quebec and Manitoba on vaccine passports, says Premier Jason Kenney.
“We’ve been very clear from the beginning that we will not facilitate or accept vaccine passports,” Kenney told reporters at the annual premier’s Calgary Stampede pancake breakfast on Monday.
“I believe they would in principle contravene the Health Information Act and also possibly the Freedom of Information and Protection of Privacy Act.”

He noted that Alberta also amended its Public Health Act to remove a 100-year-old power allowing the government to force people to be inoculated.
“These folks who are concerned about mandatory vaccines have nothing to
be concerned about,” he said.”+++++++++++

https://www.youtube.com/watch?v=26Zu73Rg2RM

#81 Wrk.dover on 07.12.21 at 9:21 pm

80k of cabinets housing 2k worth of worn out crap. Oops!

and then comes reassessment and insurance bump…

I’m glad we want what we have.

#82 Tyberius on 07.12.21 at 9:23 pm

From yesterday:

“Those who think the virus is coming back, that we’re on the cusp of a recession or an imminent debt crisis have it wrong. GDP growth in the second half of this year will be the greatest in at least 12 years. There will be (as mentioned last week) more jobs available than people willing to fill them. That will hike overall wages, and guarantee an inflation rate we’ve not seen in a long time.”

————–

Yet, the markets are a record highs due to record inflows of $$s.

At the same time:
– Corporate insiders are selling at the fastest pace (ever, I think).
– USD in on an uptrend (bad for risk assets)
– Long-dated US Treasuries are on an uptrend (also bad for equities)
– Nearly everyone is talking about ‘inflation’ now – so we’re likely to get a deflationary event next.
– Commodity ETFs have already been retreating from recent highs (eg. XLB)

All the above tell me to be cautious and with a large cash position. Not a good time to be an equity cowboy.

#83 crowdedelevatorfartz on 07.12.21 at 9:31 pm

@#68 Perturbed Ponzies Penultimate Paradigm
“I do it as a hobby.
Very relaxing.
You should try it.”

+++++

Has the heat affected your Reading and Comprehension ?
Understandable considering the High Alpine climes that your were spawned in.

I have turned the decades old dusty, weed choked yard at the shop into a veritable paradise.
All on my own time and dime.
My business partner thinks I’m nuts but the business in the neighborhood( like the returning birds) like it and have started planting flowers and shrubs at their shops.

I’m a trend setter Ponzie.
A Savant of soil.
A Maestro of manure.
A dirty fingernailed, farting, belching Urban Johnny Appleseed.
And the plants and flowers are growing like mad!
You should try it.

#84 ElGatoNerodeYVR on 07.12.21 at 9:34 pm

#67 Sail Away on 07.12.21 at 8:23 pm
#51 ElGatoNerodeYVR on 07.12.21 at 7:04 pm

———–

Sure, agreed.

But investing for return is an exceptionally easy portfolio to create; nearly every ETF out there pays some sort of dividend
====
Yep ,I thought the same and then looked on Morningstar ( RBC Investing also ) and found out that most if not all of that so called “dividend ” was actually made of Capital Gains .
Finding funds that actually qualify has been quite the plight between myself and my current financial advisor.
Morningstar is free to a degree,enough to punch your favorite funds, click on distributions and see what were they made out of.
The industry currently runs on the interpretation that investment means overall portfolio ( in the account setup to deal only with the borrowed money) and when people have multiple other accounts income and the T5’s will come obviously… until an audit happens that ties them to the respective accounts.
So far as long as the overall portfolio generates some sort of income and has “a reasonable expectation of producing income” the CRA has not really interpreted differently, but they could always decide investment is each and every fund/stock not overall portfolio. Then they can run a simple report on who has claimed investment income interest and let the audits begin.
It will all depend on how desperate for tax dollars the government of the day will be.
I personally shoot for 3.5% in Income(4% as a BHAG) and accept lower capital gains on that particular portfolio , money left on the table for sure but slightly better SWAN.
Ultimately it will not make me richer than I already think I am, but it adds up slowly to vacation and travel money at some point.

#85 NSNG on 07.12.21 at 9:47 pm

#73 Sail Away on 07.12.21 at 9:13 pm

says the guy who is ready to cut and run from Canada the minute things turn sideways.

———-

Guilty as charged.

Of course, my family lived in Venezuela back when it was a happily wealthy country, much like Canada.

Then a real nimrod came to power.

That’s why the billionaires love the millionaires. The M’s eat up the B’s get rich schemes in order to get (more) ahead.

They will even tell you they are doing it for their kids yet these schemes collectively will send their kids into a world with resentful, impoverished, debt slaves.

We are practically there already. Hence the current rise of the socialist Nimrods to power today.

#86 Stone on 07.12.21 at 9:51 pm

Lesson: wealth brings more wealth. Life isn’t fair. Deal with it.

———

I stayed quiet for a while on the portfolio front. Sometimes though, it’s nice to shout it out from the rooftops. My scrumptious B&D portfolio is churning out a 16.09% return ytd. Would I desecrate that beautiful portfolio growth with an $80k kitchen reno? I think you all know the answer to that one. Mid July and this fully vaccinated B&D is swimming over 16%. Ooooooh yeah!

#87 crowdedelevatorfartz on 07.12.21 at 10:00 pm

WOW!
The 6pm Vancouver Global News actually made it through the past news hour tonight without another 5-10 minute story/interview/ blame session on the Residential Schools……

#88 Robert Ash on 07.12.21 at 10:01 pm

If and Loans, are Demand, in Contracted form, then one must factor in rising Principle Interest Rates as Inflation sets, in, and is reflected in currency moves, that are not offset with higher interest revenue, for DFI’s.
The Credit markets are pretty hard to understand, with the Covid implications not having played out just yet… . I think higher inflationary pressures, will affect short term rates, and then Deflation. Debt and demographics the major deflationary forces.

#89 yvr_lurker on 07.12.21 at 10:08 pm

Good suggestion. Here is another one. Do whatever you can of the reno yourself. Take your holidays and figure out what you can do. I took a week of holidays building a back patio outside and got my kid to help. Looks good, and was quoted between 3–4.5K to do the job. Putting in the drainage system, rocks coarse sand and then the tiles, after digging out the hole, all is good. Next up this summer is renoing a powder room on the main floor. I just finished doing a 7 day gig of doing the trim around the house in a careful way (but only the lower part). Hired people to get up on ladders to do the upper part, but still saved 3K.

Indeed there are some things that are too complicated to learn to do well, but there are things that are perfectly within the realm of an eager learner that will save $$$ if you have the time. The pandemic has greatly expanded what I am willing to learn to take on as a project, and it has saved beacoup $$$$….

#90 Al on 07.12.21 at 11:02 pm

“Wealth brings more wealth. Life isn’t fair. Deal with it.”

Are you running again, I see a great campaign slogan lol.

#91 Cici on 07.12.21 at 11:28 pm

One more correction, darling:

“Given the fact financial assets have been growing at a double-digit rate in 2021 and even delivered more than 7% during tormented 2020, why cash some in when money is available UNDER the UNDERREPORTED rate of inflation?”

Your welcome! It’s just what I do ;-)

#92 Cici on 07.13.21 at 12:36 am

#8 From Vancouver

Bingo. You are absolutely right.

My worry… if the Queen let’s it go, it’s probably not worth having.

#93 Jane24 on 07.13.21 at 2:35 am

True story from my village in Italy.

My friend was renovating her kitchen there on the cheap. Noting that there were was a marble quarry just down our road she asked the builder to quote for white marble counter tops.

He said are you kidding me! Marble is so CHEAP looking and the cheapest option. All your friends will come in and say what a cheap kitchen. If you want to make a better impression get some quality laminate.

She insisted on the local marble counters which look great and cost her $1700 Cdn installed for a good sized kitchen with island!

#94 Other world problems on 07.13.21 at 3:02 am

Space billionaires in short supply….

https://www.theonion.com/study-finds-70-of-americans-have-less-than-1-000-save-1847276074/amp?__twitter_impression=true

#95 Zen Investor on 07.13.21 at 3:53 am

Agreed, borrow, don’t sell stocks to pay tax and lose the investment income forever. Countertops don’t pay dividends.

#96 Nonplused on 07.13.21 at 4:30 am

#76 Land of Kings and Slaves on 07.12.21 at 9:18 pm

Hate to tell all you blog dogs – but in these parts $80k for a kitchen reno is pretty normal… $35k for cabinetry, $14k kitchenaide fridge , $15k granite countertops and island, $5k Wolfe gas range, etc… all packaged up by the designers…. yes kings indeed.

——————————–

$35,000 for cabinetry? Ikea and Home Depot will set you up for a lot less with solid wood fronts. Sure the sides and back are particle board, but so are they with custom cabinets. The only difference between custom cabinets and what you get at Ikea is the custom cabinets are assembled using brad nails rather than you doing it yourself with those Ikea screwy clamps.

And $14,000 for a Kitchen-Aid? Must be at least a 96 inch cabinet model.

$80,000 dollars is enough to get you a Tesla. Or almost a Dodge-Cummins. If you are spending this on a kitchen remodel you are probably really rich, or spending your spouses money prior to divorcing them.

#97 Wrk.dover on 07.13.21 at 6:13 am

Imagine a 24″ wide fridge, 5′ tall @ $500., sitting on a single deep drawer pedestal, for bottles. Freezer is a separate item, elsewhere.

Works for us, though a second fridge beside or near it for food only while using the first for beverage only would help for a bigger family.

“Oh no the fridge broke !”, then shell out another $500 for a new one, it’s that easy.

#98 Love_The_Cottage on 07.13.21 at 8:05 am

#93 Nonplused on 07.13.21 at 4:30 am
#76 Land of Kings and Slaves on 07.12.21 at 9:18 pm

Hate to tell all you blog dogs – but in these parts $80k for a kitchen reno is pretty normal… $35k for cabinetry…
——————————–
$35,000 for cabinetry? Ikea and Home Depot will set you up for a lot less with solid wood fronts. Sure the sides and back are particle board, but so are they with custom cabinets. The only difference between custom cabinets and what you get at Ikea is the custom cabinets are assembled using brad nails rather than you doing it yourself with those Ikea screwy clamps.
_________
And with IKEA you are restricted to certain sizes. Our kitchen has a small open shelf cabinet on one side of the window because that was the only thing that fit. We put cook books in there to make it look like we did it on purpose. Not one person walking in the kitchen guessed IKEA. Good quality, went together with no gaps, etc.

#99 crowdedelevatorfartz on 07.13.21 at 8:17 am

@#90 Jane24 carats
“My friend was renovating her kitchen there on the cheap.”

+++

I find it impossible to believe you would allow yourself to associate with cheap people.

#100 Counter Turner Nation on 07.13.21 at 9:02 am

TN, I don’t recall you being concerned when these studies about myocarditis following a covid infection came out. Guess they didn’t align with your narrative.

https://jamanetwork.com/journals/jamacardiology/fullarticle/2780548

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7199677/

#101 Dharma Bum on 07.13.21 at 9:04 am

The ONLY way to go:

OVEN/STOVE: Wolf

HOOD FAN: Wolf

REFRIGERATOR: Sub -Zero

DISHWASHER: Miele

The appliance package will cost you around $30K.

Unless you go for the built in double wall ovens. Then you can add another $5K or so.

It’s the ONLY way to go. Everything else is crapola.

You’ll still have $50K left over for cabinets, counters, and flooring.

Your food will taste WAY BETTER knowing it was cooled and cooked with Wolf/Sub-Zero. And those dishes will sparkle after being washed and rinsed in the silent running Miele.

Otherwise, don’t bother.

Hey, like the entitled whiny woke politically correct mils say: YOLO.

#102 crowdedelevatorfartz on 07.13.21 at 9:57 am

@#98 Dharma Bun

Quality aside.
All these high end appliances are wonderful I’m sure.
However if you live in a small town, village or otherwise. Good luck getting it serviced. Or parts.
Warranties go out the window when there isn’t a “qualified” serviceman within one hundred miles.

You will wait months for labor to even look at it or god forbid , you send it back expecting a prompt replacement.
With the world wide chip shortage a friend waited 8 months for a stove/convection oven.
Glad I’m not building a house right now.

#103 Job#1 on 07.13.21 at 10:46 am

$80K for a kitchen, pure ostentation. Typical first world “problem”, when Wants morph into Needs.
Still, it provided Garth with grist for the mill to instruct re logical financing choice.

#104 NSNG on 07.13.21 at 10:54 am

DELETED

#105 crowdedelevatorfartz on 07.13.21 at 11:01 am

Hmmm.
After many weeks of outrage, protests, statue vandalism, church burnings and endless apologies from election minded politicians of all stripes…. for alleged genocide…

We now have this comment from the Kamloops 1st Nations.

“After the unmarked graves were located — something First Nations leaders have stressed was not a discovery but rather a confirmation of what Indigenous communities have long known….”

https://www.citynews1130.com/2021/07/12/bc-unmarked-graves-kuper-island/

Perhaps the advertising hungry Media will reduce the anti Canada rhetoric a tad?

#106 IHCTD9 on 07.13.21 at 11:25 am

#98 Dharma Bum on 07.13.21 at 9:04 am

Ha!

All appliances here are Kenmore except the stove which is GE. 20 years old and counting. Cheap and easy to fix, but rarely need it – in fact, the stove has not needed anything beyond a few oven and panel lightbulbs so far.

If the food doesn’t taste good, I just add a little extra rum to my next glass.

#107 G on 07.13.21 at 11:28 am

If you miss it July 11.
(Will everyone soon be think 2+2=5 also? If this stands…
Simple suggesting people have your kids taught elsewhere, which will help your own kids brains, won’t fix this. Everyone need to make sure that one plus one ‘continues’ to equal two for most or we’ll all be…as a society. Seem the insane are now even more in charge and planning on growing in numbers. see article.)

Canada’s Ontario province has injected anti-racist activism into its Grade 9 math curriculum, decrying the science as having been used to “normalize racism” and demanding that lessons “challenge systems of power and privilege.”
https://www.rt.com/news/528950-ontario-math-is-racist/

#108 Mattl on 07.13.21 at 11:30 am

#83 Stone on 07.12.21 at 9:51 pm
Lesson: wealth brings more wealth. Life isn’t fair. Deal with it.

———

I stayed quiet for a while on the portfolio front. Sometimes though, it’s nice to shout it out from the rooftops. My scrumptious B&D portfolio is churning out a 16.09% return ytd. Would I desecrate that beautiful portfolio growth with an $80k kitchen reno? I think you all know the answer to that one. Mid July and this fully vaccinated B&D is swimming over 16%. Ooooooh yeah!

———————————————————–

SP500 is at 18.5% YTD. TSX 15.7%.

Bog congrats on equally the benchmark, definitely brag worthy.

Also, you aren’t B&D by Garth’s definition as had been pointed out here many times.

So in reality you have a higher risk portfolio that is under performing the SP 500. You would likely be better just holding VFV or similar. Your downside is likely in line with a one ETF hold.

#109 IHCTD9 on 07.13.21 at 11:41 am

#99 crowdedelevatorfartz on 07.13.21 at 9:57 am
@#98 Dharma Bun

Quality aside.
All these high end appliances are wonderful I’m sure.
However if you live in a small town, village or otherwise. Good luck getting it serviced. Or parts.
Warranties go out the window when there isn’t a “qualified” serviceman within one hundred miles.

You will wait months for labor to even look at it or god forbid , you send it back expecting a prompt replacement.
With the world wide chip shortage a friend waited 8 months for a stove/convection oven.
Glad I’m not building a house right now.
————

I don’t know how fundamentally different these high end appliances are compared to the old stuff, but in my experience there aren’t too many mechanical things easier to fix than an appliance. They are so basic, and come apart/go together fast.

I replaced the original drive coupling in our direct-drive washer which is buried about as deep as you can go into the machine. Did the whole job with two sockets and a couple screwdrivers in under an hour.

The worst part of the job was just getting the cabinet back on the frame properly.

#110 DON on 07.13.21 at 12:06 pm

#99 crowdedelevatorfartz on 07.13.21 at 9:57 am
@#98 Dharma Bun

Quality aside.
All these high end appliances are wonderful I’m sure.
However if you live in a small town, village or otherwise. Good luck getting it serviced. Or parts.
Warranties go out the window when there isn’t a “qualified” serviceman within one hundred miles.

You will wait months for labor to even look at it or god forbid , you send it back expecting a prompt replacement.
With the world wide chip shortage a friend waited 8 months for a stove/convection oven.
Glad I’m not building a house right now.

**********

There is also the question of functional opposed to buying the brand names and over paying with the Jones. It’s a kitchen!

My sis had a similar experience…with service parts and repairs. They had to buy a new model in the end.

#111 DON on 07.13.21 at 12:10 pm

“Bank of England Warns Junk-Debt Froth Could Amplify Any Downturn”

Bloomberg market news.

The view ahead…?

#112 Darth Boomer on 07.13.21 at 12:13 pm

https://ca.finance.yahoo.com/news/gen-z-millennials-playing-significant-154107401.html

“I started to feel stuck,” said the 30-year-old Ottawa-based software developer. “There weren’t many opportunities to step out of daily work to expand skills. I had to commit to learning new skills outside of work to satisfy that desire and gain the confidence to even apply for other positions.”

Mills, be part of the change, or be run over by it.

#113 Mean Interior Designer Guy on 07.13.21 at 12:59 pm

So I guess you haven’t heard about the trend in high end California homes to have 2 kitchens?

One to show off the appliances and marble that is never used.

And one that is hidden, where the staff prep the meals.

#114 Phylis on 07.13.21 at 1:00 pm

#101 crowdedelevatorfartz on 07.13.21 at 11:01 am
Hmmm.
After many weeks of outrage, protests, statue vandalism, church burnings and endless apologies from election minded politicians of all stripes…. for alleged genocide…

We now have this comment from the Kamloops 1st Nations.

“After the unmarked graves were located — something First Nations leaders have stressed was not a discovery but rather a confirmation of what Indigenous communities have long known….”

https://www.citynews1130.com/2021/07/12/bc-unmarked-graves-kuper-island/

Perhaps the advertising hungry Media will reduce the anti Canada rhetoric a tad?
Xxxxxxxxxx
Nah, they need to retain their voracious behaviour as to slow their transition from news into social media.

#115 Chris on 07.13.21 at 1:06 pm

#103 G “ anada’s Ontario province has injected anti-racist activism into its Grade 9 math curriculum”

Stopped at “Math is subjective”

My god, this is a path back to the dark ages.

Just glad my kids are out of the school system.

How is this anti white racist propaganda getting approved, let alone trying to turn Math into a ‘social’ science?

#116 Geez, G on 07.13.21 at 1:11 pm

Math is math. If they can find a way to teach it that doesn’t turn students off, I can’t see what the problem is. Here is a less hand-wavey, sky-is-falling version:
https://toronto.ctvnews.ca/ontario-removes-streaming-in-new-grade-9-math-curriculum-here-s-what-will-change-1.5462775
Teaching financial literacy seems like a good idea.

#117 Sail Away on 07.13.21 at 1:28 pm

#105 IHCTD9 on 07.13.21 at 11:41 am

…in my experience there aren’t too many mechanical things easier to fix than an appliance. They are so basic, and come apart/go together fast.

——–

Yes, correct. It’s always worth a look before ordering new.

One major flaw in some front-load washers is the drum support, called a spider, is often aluminum in direct contact with steel. With moisture, this creates galvanic corrosion and can make repair uneconomical.

But washers, driers, furnaces… dead simple. I’ve replaced pumps, heating coils, burner units. Some fabrication capacity can be handy for those little only-for-this-unit pieces.

Here’s a tip on a glass-top/glass control range- ours has a glass touchpad control panel that got smashed. Don’t ask, although it might have involved someone else being smashed at the same time… A new control panel was $1,000, a new range was more. I scanned the control panel, drew it in CAD, relabeling some of the crazy unintelligible hieroglyphic labels and had a sign shop print it as a vinyl decal, then had glass cut to match, pasted the decal and reinstalled. All touchpads worked perfectly. Total cost under $100. And no need to interpret crazy little bird-faced god symbols.

Wrk.dover would just build his own range.

#118 Dog Catcher on 07.13.21 at 1:36 pm

DELETED

#119 Stone on 07.13.21 at 1:48 pm

#104 Mattl on 07.13.21 at 11:30 am
#83 Stone on 07.12.21 at 9:51 pm
Lesson: wealth brings more wealth. Life isn’t fair. Deal with it.

———

I stayed quiet for a while on the portfolio front. Sometimes though, it’s nice to shout it out from the rooftops. My scrumptious B&D portfolio is churning out a 16.09% return ytd. Would I desecrate that beautiful portfolio growth with an $80k kitchen reno? I think you all know the answer to that one. Mid July and this fully vaccinated B&D is swimming over 16%. Ooooooh yeah!

———————————————————–

SP500 is at 18.5% YTD. TSX 15.7%.

Bog congrats on equally the benchmark, definitely brag worthy.

Also, you aren’t B&D by Garth’s definition as had been pointed out here many times.

So in reality you have a higher risk portfolio that is under performing the SP 500. You would likely be better just holding VFV or similar. Your downside is likely in line with a one ETF hold.

———

Thanks. In regards to what a B&D portfolio should consist of though, there’s multiple ways to skin a cat. In the end, it’s still a cat. As much as I love Garth and as smart and handsome as he is, he didn’t invent the B&D. Sometimes being a bit different from the herd has its payoffs.

#120 crowdedelevatorfartz on 07.13.21 at 2:59 pm

@#108 Darth Boomer
“Mills, be part of the change, or be run over by it.”

++++
Bwahahahaha. Good one.

@#110 Phylis
“Nah, they need to retain their voracious behaviour as to slow their transition from news into social media.”

+++
Hah!
True , very true.

#121 Boomtown Rat on 07.13.21 at 4:08 pm

How about TWO joint cash accounts…one his…one hers….in order to keep the tax implications (income and cap gains) less confusing for reporting purposes?

Would that work too, Mr. Turner?

#122 Don on 07.13.21 at 4:57 pm

#1 Polozified
I have to agree with you. It is the same as the “multiculturalism” and ” divide and conquer” mantra. We have no Canadians in Canada. All are different breeds with a tag. French Canadians, Italian Canadians, Lebanese Canadians, Indian Canadians. All fragmented into pieces, for ‘easy handling”.

What is the new term for “subprime mortgages”? Get this … “Bespoke collateralized debt obligations”!!!!! lol!!

“A rose by any other name……………….”

#123 From Vancouver on 07.13.21 at 11:16 pm

Guys, gals, I watch all the latest events and cannot stop not worrying.

I am coming from Socialist Romania. I immigrated here to Canada when o was 19. I was old enough to remember and grow up under a socialist regime, under Ceausescu, the dictator and despot.

Needless to say, you do not see too many newcomers to Canada from the former east Europe and communist block [Czech Republic, Slovakia, Serbia, Bulgaria, Russia, etc.)… voting the left or sympathizing with NDP or even the liberals. No wonder Canada is not accepting and not encouraging immigrants from east Europe, because liberals know that these are undesirables and they do not vote [usually] leftist governments.

It breaks my heart when I see this amazing country where one can work hard get ahead and have a safe life and raise a family, all slowly but surely destroying itself and self transforming and morphing into a socialist useless utopia.

All the dreamers out there, do you know what socialism means? I can hold my hand over my heart and say that socialist means people starving. No food in the stores, no toilet paper, no soap, no shaving cream, absolutely no meat, 50 g of butter per month, rationalized bread and milk, and 20 litres of gasoline per month per family.
Oh, no anesthetic for routine surgeries, or for dental surgeries.
Patriotic school kids encouraged to report on their parents. Every single school class having one secret informer to rat you in, should you not sing the dictator praises too convinced.
Every family reunion with one informer; you wonder who is it is going to get you 10-15 years in jail? Your cousin? Your brother in law? Your wife?
Warm water 2 hours per day, three days per week.
1kw or electricity per family per day (the average Canadian family uses 150 kW of electricity per day).
One day per week with lights-out. Try to come hold in thr winter at night, on pitch-black darkness in thr winter. No batteries in the stores to be had. People making their own candles.

Having to go to church in secret. Even priests being secret police informers.

Why would we want to transform Canada into this?
It breaks my heart to see that the traditional capitalist countries, former bastions of liberty and keepers of the free world, are slowly self-destructing and transforming themselves, with some public cheer, into socialist nonsense utopias [which never work out], while the former socialist countries are actually more capitalist, and more pro business and pro work and pro true individual rights.

My pathological engrained suspicion of government and fear of governments lying and conspiracies [because I know how far they can lie to their own people], makes me suspect that China and Russia are laughing their asses off, and are behind all the latest social unrest and drug problems and self-destruction of the US and Canada.

How can FBI and CSIS not see that all this self-destruction is sponsored and instigated by China and or Russia?

Last time I tried to explain this, one rude 20yo brat told me off and tried to lecture me that Romania was not socialist, but communist, and that I don’t know, but the socialism is different, and somehow better for the people (…of Canada).

Good people if Canada: please, let’s not destroy this amazing country. Simply, you do not know how bad socialism or communism is. Once started, it would take 50-80 years to topple any socialist dictatorial regime.
It will not happen in your life time.
My mom, she used to joke, saying that she was “thr sacrificed generation”, living most of her life under communism.

No dippers; she had to wash and boil the cloths used as dippers

#124 Land of Kings and Slaves on 07.14.21 at 1:56 am

#96 Nonplused
#98 Love_The_Cottage

Who said sanity and practicality ruled the Land of Kings and Slaves….

I just make it happen….

20 yrs ago the first Grohe kitchen tap was spec’d into a reno I was part of by the designer… I had to pick it up and pay for it…. $700 + gst… I asked if it made coffee.

The Kohler Art Series taps started at $3500 :{, range hoods that suck so much air – by code we have to install heaters into the makeup air intake…. INSANITY is the normal.

Point is – some in our society are practical – purchase durable, practical things – others watch the DIY network (industry-funded), buy architectural digest and follow the colour trends….

Personally for my search on an affordable acerage – I stopped driving paved roads… can’t afford it.

(and btw IKEA cabinetry is no different than the $35k stuff except for some flourish – if you know how to adapt… its not like the “high-end stuff” is made custom – just a few more curves and fancy make up).

ps… where do you get a Cummins diesel for 80k now… I’ve been nursing/wrenching my 1998 12V for years and right now the new ones rolling around here driving by the 30 yr olds are on average close to 100k…

I built my house for that.