Choices

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RYAN   By Guest Blogger Ryan Lewenza
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There’s something brewing with the big Canadian banks that investors should be aware of. In my opinion, it’s not good for clients and investors as a whole.

The Canadian Securities Administrators (CSA), which is an umbrella organization of the various provincial and territorial securities regulators, is putting into effect new regulations – known as the client-focused reforms (CFRs) – by the end of this year. These reforms include changes to a key regulation, called “know-your-product” or KYP rule, which is at the heart of the recent changes at some Canadian banks.

Essentially this KYP rule is to ensure that financial planners and advisors like ourselves need to know and understand the products we are investing clients in. It’s a pretty straight forward, intuitive and reasonable regulation that requires investment professionals to do their job, and analyze and understand the products they are offering to clients.

Well, some of the Canadian banks including TD, Royal Bank and CIBC, are using these new regulations to make sweeping changes to their financial planning divisions, where they will no longer offer third-party mutual funds and investment products to their clients.

What this means is that these financial planners will only be investing their client portfolios in their own, in-house investment products. So the investment decisions will not necessarily be based on what’s best for the client. For example, the investment decisions will not be about which funds have the lowest fees or the best long-term performance. They will be restricted to just the firms in-house, proprietary products, so choice is getting severely restricted.

The banks are saying these decisions will reduce risk and result in better outcomes for clients. This is debatable. My take is that these banks are using these regulatory changes as an excuse to now only offer proprietary products, where they earn higher fees.

These decisions and changes in strategy has prompted some response from regulators. Mutual fund companies have voiced their concerns and the head of the CSA, Louis Morisset, has recently stated his concerns at an investment conference, which was then picked up in a Globe & Mail article. The quote reads:

“I can assure you that this is not an appropriate result and we will make sure that things unfold in the right way,” Mr. Morisset told the virtual audience during a question period at the Investment Funds Institute of Canada’s annual conference. “The reforms are there to increase professionalism in registrants and give them more in terms of tools to do a better job with their clients. If that boils down to reducing what they can sell, then we have a big problem.”

So what’s the point of this?

First, investors should be aware of this important change, which will reduce their investment choices and potentially impact future performance.

Second, as we always advocate, stick with ETFs since there are hundreds of different ETF companies to choose from globally, and over 40 different ETF companies in Canada. We deal with a number of the top ETF companies like iShares/RBC, Vanguard, BMO and Fidelity. Why limit yourself to just one option?

Third, always invest in Canadian bank shares (we prefer through a broad-based ETF) since they focus a lot on the bottom line and deliver great earnings growth.

Lastly, if you have a financial advisor, ensure they are always acting in your best interests by adhering to KYP rules, completing their due diligence on the recommended investments, and investing in the leading investment firms, with our preference being ETF companies.

I’m going to be very interested to see how this all plays out in the coming months. Stay tuned!

Current List of All Canadian ETF Companies and AUM

Source: National Bank, ETF Research & Strategy
Ryan Lewenza, CFA, CMT is a Partner and Portfolio Manager with Turner Investments, and a Senior Vice President, Private Client Group, of Raymond James Ltd.

 

119 comments ↓

#1 crowdedelevatorfartz on 10.09.21 at 10:00 am

Know Your Product

Sounds like a motto plastered on a wall in a “Safe Injection Site” in the Downtown East side.

#2 crowdedelevatorfartz on 10.09.21 at 10:05 am

@ Sailio

“…but his very name or mention of his wildly-successful ventures seems to drive you into paroxysms of blind fury. ”

++++

Sadly.
I dont think it’s the message that drives uncle Faron’s blood pressure into a stratospheric tither…… it’s the messenger….
:)

#3 Axehead on 10.09.21 at 10:11 am

Ryan, thanks for bringing this to attention. Very disturbing indeed, considering our Canadian banks are protected by the Canadian taxpayer from financial default through our central bank and protected from mortgage default by CMHC. Perhaps a general overview of the banking system would bring a much needed education to your readers, a significant challenge to do succinctly in a limited blog.

#4 TurnerNation on 10.09.21 at 10:13 am

The future in Kanada. NO new money will be spent on “hospital capacity”. Get over that.
No it will all be going toward “Climate Change initiatives”. That is, fat no-bid contracts handed out to friends of The Party.

Everything going on is designed to make us dependent on the global nanny state. Why you must even scan your green pass, to get Permission for entry. Like a child.
Cowed Kanadian sheep love this level of control.

What of all the fired workers who will not submit to the New System? UBI incoming. Total. State. Dependence. This is how a reset works see? You will own nothing and be happy.

———————–

— Soo close to normalcy! Guys!! Any day now.
If anyone is hiding an “Un” in their attic or under the floorboards you know what to do Comrade! Dial it in.

.BC: “Children as young as age five will soon be required to wear masks in all indoor public spaces, says the province’s top doctor.
Provincial Health Officer Dr. Bonnie Henry told CHEK News that she will next week revise her public health order on indoor masks for grocery stores, libraries, recreation centres and other indoor public spaces to align it with the new mask mandate in schools that now begins at kindergarten.

.Ontario releases COVID-19 guidance for Thanksgiving gatherings, trick-or-treating (cp24.com)

.(CTV News) Saskatchewan is putting together a team, largely made up of retired police officers, to enforce public health orders.
The Covid Enforcement Team (CET) will be responsible for enforcing the indoor mask mandate and proof of vaccination requirements at places like gym and restaurants….
The province is also restarting an online non-compliance reporting form and telephone line for residents to report suspected public health order violations.

#5 Dolce Vita on 10.09.21 at 10:20 am

Thank you for the heads up Ryan.

Already started searching for a commission free online brokerage. First one that takes an Italian phone number gets my business.

Pretty much had it with TD WebBroker.

They can’t even calculate Dividend Projected Income within 40% of the actual number. You tell this, make the calculation using their data on the day of the trade and all you get is “Help” bulltweed from them. If you make a trade in your TFSA account and end up negative $ (in my case $4.80) they will unilaterally sell your TFSA stock to make good on that debt AND charge you for the credit. Considering a dividend was due that month to cover that egregious debt, I was left with my head shaking.

Based on the above diatribe of mine, I can well imagine left free reign on investments how brazen TD is likely to get per your article.

As usual my gratitude to Garth et. al. for important investing info such as today.

Kudos to all of you!

#6 mark on 10.09.21 at 10:22 am

Isn’t this a moot point, DIY still can choose any product they want. If your stuck with a bank or advisor or bank that limits your products you can buy, just change?

#7 Dharma Bum on 10.09.21 at 10:22 am

WAIT!!!

The banks might be doing something in their own financial self interest at the expense of the public???

Ohhh…say it ain’t so, Joe! Say it ain’t soooooooo…….

https://www.youtube.com/watch?v=KQveng3Wxz8

#8 Dolce Vita on 10.09.21 at 10:37 am

Heads up to you ALL OF YOU about the VAX.

Came across this article today at Global News:

“Northwest Territories COVID-19 crisis rages on as Canada sees curve plateau”

https://globalnews.ca/news/8254124/northwest-territories-covid-19-canada/

NWT currently has 926 cases per 100,000 residents as of Thursday which is RIDICULOUSLY high. For example have a look see at the current EU Cases/100K map to get the gist of it, scroll almost to the bottom :

https://www.ecdc.europa.eu/en/cases-2019-ncov-eueea

NWT vax status:

12+ yrs old:

Single Dose 94.96%
Fully Vaxd 89.54%

There should be NO CASES there with that level of vaxing – even in the unvaxd. Those are herd immunity numbers which ought to protect even the unvaxd:

https://www.bloomberg.com/news/articles/2021-08-03/delta-s-spread-seen-pushing-herd-immunity-threshold-above-80

Memory services correct, almost all Moderna used there due to storage issues with Pfizer. They were amongst the 1st in Canada to get vaxd.

Looks to me like Moderna wearing off.

If it ISN’T then we as a species are seriously..well, you know.

– A FWIW heads up for Garth & his adoring masses that I love.

#9 Flop... on 10.09.21 at 10:48 am

“These reforms include changes to a key regulation, called “know-your-product” or KYP rule, which is at the heart of the recent changes at some Canadian banks.”

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

This is not really all that new, for years the banks have been grabbing the KY gel and telling their clients to bend over…

M47BC

#10 Wrk.dover on 10.09.21 at 10:51 am

Nice information to have. Thank you Ryan.

[email protected] sold my wife a “market smart” three year GIC with return of between 1% and 15%, to be determined at maturity.

Just came due, paying 12% total, (4%/yr is my view)

No disclosure on what she owned then or now!

Not being re-invested there…..

#11 Wrk.dover on 10.09.21 at 11:02 am

Hey IHCTD9, Speaking of inflation and severance, what are the odds your ‘farm’ was more than 4 acres during your lifetime. I’m guessing it was worth 10% of what you paid for it, earlier in your short at that time lifetime.

We gleefully paid 10.4 G for our 40 acres to the man that had swapped a new 8hp ride on lawn mower for it two years prior. The lawn mower recipient had paid $500 shortly before then. Ten years on, I repatriated 1/4 acre that had been severed, for 2G.

Inflation comes and goes. Adjust. Keep the toys you will want later. Uppa.

#12 Love_The_Cottage on 10.09.21 at 11:09 am

#7 Dharma Bum on 10.09.21 at 10:22 am
WAIT!!!

The banks might be doing something in their own financial self interest at the expense of the public???
_______
Yes, the same as being upset because the real estate industry is pushing…wait for it… real estate.

Never ask a barber if you need a haircut.

#13 Debtslavecreator on 10.09.21 at 11:27 am

Simple – outlaw the sale of proprietary funds
They’ve been moving to this for years and are now using this new regulation to go all in.
Only etf that are comparable in cost to external firms should be allowed
No one should be paying more than 1.50 for an advice / product solution
And banks /CUs need to move away from aggressive short term sales models
Much of the industry is junk
Hire cheap low skill staff
High turnover
Poor client outcomes

#14 Dogman01 on 10.09.21 at 11:32 am

Any whiff of Funny business with discount brokerages?
I assume they would not limit options there just with their in house FA.

My big green bank was particularly non responsive when I asked about MAW180 a new MF I may be am interested in. It is not available on their platform, and I assumed just because it was new but their front line staff were, obtuse and just unhelpful. In my experience when front line staff are like that it means the answer is something the customer may not like.

#15 Shawn Allen on 10.09.21 at 11:38 am

Ryan, will the big banks still offer all those competitor (non-inhouse) mutual funds to their direct investor do-it-yourself clients?

#16 Drill Baby Drill on 10.09.21 at 11:39 am

Thank you for the great advice. I will use it.

#17 Dogman01 on 10.09.21 at 11:40 am

Grrrrr.

They changed the pension commute formula; biggly.
Instead of a parachute looks like they want you to have a seatbelt.

March 2021
LIRA $430K
Cash $300K

March 2022
LIRA $465K
Cash $110K

$155,000 of my Pension Value pooff…..

Pension of $30K a year, only 60% indexed to Inflation.

What to do now….hmmm.

#18 Shawn Allen on 10.09.21 at 11:46 am

Ryan, even if this just impacts the mutual funds sales people in branch this is a hugely disturbing development. I wonder what percent of the bank’s clients are mutual-fund-only investors and do not even have access to ETFs?

Just think about this, the big banks are probably now the main distributors for independent mutual fund outfits. Only the very largest like Investors Group I believe have their own mutual fund advisors. There are probably many small mutual funds that are extremely dependent on distribution through the banks? If so, they are toast?

Having largely taken over the distribution and sales of mutual funds, the banks will now cut-off their competitors and refuse to distribute them at least through their branches and mutual fund salespeople? Outrageous!

The silver lining is that it may accelerate the move to allow open banking.

The ENTIRE Canadian financial services industry including, yes, fee-based ETF investment managers is ripe for removal of the vast protectionist wall that surrounds it.

#19 Shawn Allen on 10.09.21 at 11:52 am

Kudos to Garth for deleting Anti-vax posts

Some would say allow freedom of views.

But in this case a very large scientific consensus exists that vaccines are saving lives. Anyone trying to convince others that vaccines are more of a danger to them than the virus is literally contributing to deaths today and in the next several weeks and months and have contributed to deaths and serious outcomes and clogged hospitals this year.

Those people (that advocate against vaccines) should be ashamed of themselves and deserve absolutely no air time. If you are anti-vaccine then for god’s sake keep your view to yourself and stay home as well.

#20 the Jaguar on 10.09.21 at 12:03 pm

Respectfully, isn’t this just a ‘labour quality’ issue? If a person has real smarts and talent as an investment advisor they don’t toil away at one of the big five for long, even if they get their start in one of those financial institutions. They exit stage left to some other entity where the compensation is more appealing and flexible.

There is a ‘food chain’ of skill and expertise in the Investment Advisor business, and the Banks are sort of like McDonalds. Safe, reliable, not gourmet but you can get a meal. If the Bank’s take a few products off their shelves it lessens the probability of reputational risk or legal issues in the event of breakage. I doubt any of them actively sell third party funds.

Choices. Accountability for those choices. Sometimes it falls to the individual to educate themselves. Those who can will. The Ancient Warriors do the cost/benefit analysis and act in their shareholders interest. Like the customers they serve, they know how to vote with their feet.

#21 Sail Away on 10.09.21 at 12:07 pm

#5 Dolce Vita on 10.09.21 at 10:20 am

If you make a trade in your TFSA account and end up negative $ (in my case $4.80) they will unilaterally sell your TFSA stock to make good on that debt AND charge you for the credit.

———

You break the rules of the game, you serve a penalty. Geez.

The folks fined for swimming in Italy’s fountains probably feel hard done by as well.

#22 Nonplused on 10.09.21 at 12:09 pm

Many of the products banks offer are highly duplicative anyway, but I wonder how this will affect certain funds that the banks typically don’t duplicate.

And isn’t the bias towards in house products already there?

#23 Do we have all the facts on 10.09.21 at 12:15 pm

As I understand the CMT designation it indicates that a financial advisor is focussed on the intrinsic value of assets when compared to the current or past market value.

The determination of intrinsic value for individual stocks can be based on traditional economic metrics. The intrinsic value of ETF’s is more difficult to determine since it could involve the detailed analysis of hundreds of companies.

In 2021 the majority of investment decisions seem to be based on increasing market values that are generating significant capital gains for investors. The increase in P/E ratios of many companies seems to indicate that market values might be exceeding intrinsic values.

Garth has consistently referred to his fiduciary obligation to clients and I was wondering whether a CMT certification obligates a financial advisor to discuss the intrinsic value of each investment opportunity with existing or potential clients.

Where does an honest assessment of the potential risk associated with an investment opportunity begin or end.

#24 crowdedelevatorfartz on 10.09.21 at 12:20 pm

China’s Chairman blinks….

https://www.reuters.com/world/china/chinas-xi-says-reunification-with-taiwan-must-will-be-realised-2021-10-09/

But, will his “Wolf Warrior” military leaders be placated?

#25 Nonplused on 10.09.21 at 12:26 pm

#19 Shawn Allen on 10.09.21 at 11:52 am

“Those people (that advocate against vaccines) should be ashamed of themselves and deserve absolutely no air time. If you are anti-vaccine then for god’s sake keep your view to yourself and stay home as well.”

That sounds just as militant to me. I don’t believe any reasoned views should be censored. But a lot of nutty conspiracy stuff comes through and I prefer not to have to scroll over it.

It’s sort of like the climate debate. On the one side you have Greta and her handlers, way over on the other side you have the folks who think man made emissions play no role and it is all a conspiracy. But there are a whole bunch of folks (probably most) all along the spectrum who are arguing about the severity, forecast accuracy, and the practical implications of proposed reactions, not the fact of climate change itself. Where on the spectrum should the knife come down?

But ya I imagine the comments Garth deletes aren’t fit to be printed.

And we must keep in mind that this is not a free speech zone, it is Garth’s space. Free speech gives you the right to say whatever you want, but it does not obligate anyone else to publish it and it does not protect you from liable.

#26 Faron on 10.09.21 at 12:36 pm

#101 Sail Away on 10.09.21 at 7:49 am

Elon Musk is not an engineer. Easily confirmed. LOL.

Whatever clarity of thinking you regained from your time hunting appears to now be depleted.

#27 Banks, stocks, real estate, pffft on 10.09.21 at 12:48 pm

The whole system is a grand joke anyway Ryan. And in every way imaginable, we all know that mate.

Have a great Thanksgiving.

#28 Faron on 10.09.21 at 12:50 pm

#103 KLNR on 10.09.21 at 9:03 am
@#95 Ponzius Pilatus on 10.09.21 at 12:04 am
#93 Sail Away on 10.08.21 at 10:40 pm
#87 crowdedelevatorfartz on 10.08.21 at 9:33 pm

1200 overdoses in BC so far this year

and its going to get much much worse.

——-

Yeah, I can’t understand why people choose to do that.
———————

addiction is a nasty disease, usually comes as part of mental illness. To say all these folks are choosing to OD is just a bizarre and sad comment. I assume its just trolling.

It’s both trolling and a hyper archaic world view. But engineers are innovative… LOL.

#29 kc on 10.09.21 at 12:53 pm

19 Shawn Allen on 10.09.21 at 11:52 am

Kudos to Garth for deleting Anti-vax posts

Some would say allow freedom of views.

But in this case a very large scientific consensus exists that vaccines are saving lives. Anyone trying to convince others that vaccines are more of a danger to them than the virus is literally contributing to deaths today and in the next several weeks and months and have contributed to deaths and serious outcomes and clogged hospitals this year.

Those people (that advocate against vaccines) should be ashamed of themselves and deserve absolutely no air time. If you are anti-vaccine then for god’s sake keep your view to yourself and stay home as well.

*************

Interested to know and ask you… Do you have your QR coded Identification that lists your medical information? and are you proud to give anyone who asks for this information to them with out questioning?

OK now what if the next step is if you don’t get your 3rd or 4th booster shots you can’t go into a bank, you can’t go into a vehicle license building, but also included into that QR code is all your banking information, what your balance is, what you owe, and if you refuse to allow this into your “passport” you can not legally shop in stores.

You think it can’t happen?

You ever heard of the “Social Credit Score” that they are experimenting with in China?

….

On the radio, the health chief Bonnie Henry said “do you want to allow un-vaxed friends at your dinner table”?

Just start and dividing families because of this… just keep believing what you want to.

I am not a nut case, just well read on both sides of the story and with some depth people might look deeper into what is around them.

It is easier to shoot a person without a face than it is to see their whole smile.

let that sink in for a minute.

#30 Shawn Allen on 10.09.21 at 12:55 pm

To Commute or Not to Commute the Pension

#17 Dogman01 on 10.09.21 at 11:40 am
Grrrrr.

They changed the pension commute formula; biggly.
Instead of a parachute looks like they want you to have a seatbelt.

March 2021
LIRA $430K
Cash $300K

March 2022
LIRA $465K
Cash $110K

$155,000 of my Pension Value pooff…..

Pension of $30K a year, only 60% indexed to Inflation.

What to do now….hmmm.

******************************
Are you married and male? Then you KNOW your wife will be against commuting. She needs that stability.

You already have other investments that you look after right? Then balance suggest keep the pension, why put all your investments eggs in your basket especially when you could lose your marbles one day and lose it in bad / stubborn trading decisions?

In most government jobs you have to retire / quit before age 55 to get the commuted value. Getting your hands on some $665k is no good reason to quit a government job where you can continue to build your pension and enjoy medical and travel benefits.

As far as the haircut on the calculation . It’s about time. Commuted values have been too rich for a very long time.

Be thankful, the lower value is helping you make the right decision here.

You will enjoy your $30k pension income. It’s guilt free spending money. Taking money out of a LIRA is more complex and not as guilt-free.

#31 Sail Away on 10.09.21 at 1:02 pm

#26 Faron on 10.09.21 at 12:36 pm
#101 Sail Away on 10.09.21 at 7:49 am

Elon Musk is not an engineer. Easily confirmed. LOL.

——-

Correct. Elon is an innovator who pushes the envelope of knowledge. Just pointing out that it’s not only engineers you dislike, but also innovators.

#32 Regulators on 10.09.21 at 1:09 pm

CSA and others are messing around with more regulations that don’t help clients while CDIC deposit insurance is still $100,000 after 16 years+ since 2005 last increase from $60,000 to $100,000. If you believe even their minimal, low inflation stats, CDIC deposit insurance should be minimum $152,000 today. This is still quite low as everything else mostly housing, real estate, gas energy and many more things has gone way up more than their cpi, inflation stats.

Ontario’s deposit insurance for credit unions is $250,000 up from $100,000 which was done in 2017. Many other provincial deposit insurance is much higher than CDIC’s deposit insurance $100,000 limit. I think it is about time that the interest paid or compounded on GIC’s, savings accounts etc. should be covered, protected by CDIC insurance when above the $100,000 deposit insurance limit.

Another lagging protection for investors lagging inflation and had no increases in over 22 years, since 1999 is CIPF, it was increased from $500,000 to $1,000,000 and since then nothing. It should be minimum $1.72 million today with 2.5% annual inflation since 1999. It should be $2 million to better reflect the higher inflation now and coming soon in the next few years. Also, unlike CDIC and FSRAO and other deposit insurance, protection regulated by governments, organizations, CIPF combines all joint account holders’ assets into the maximum $1 million coverage. So a jointm non-registered account with husband, wife for instance should be now with no increase $2 million or $3.4 million withe the minimal increase to CIPF coverage. It just seems to me everyday, the government and regulators really only look at real estate and debt as the part of society to protect their debt binge, tax binge, real estate binge in favoured, special treatment going and nothing to put a level playing field for financial assets, investments in Canada.

#33 Albertaguy in AB on 10.09.21 at 1:14 pm

Sounds like just another reason to own the banks…

#34 Stahom on 10.09.21 at 1:24 pm

I have trouble pooh-poohing these bank initiatives because these products offer an opportunity for rank novices to cultivate an attitude of saving in financial products. Then the individual can educate and modify as their nature permits.

A friend has his wad with the Big One and is mortified at the thought of ETFs regardless of my willingness to share my numbers and costs fully ETF. This is Partly due to his advisor’s self serving etf propaganda, but mostly my friends nature. So be it. He had mid six figures in cash from a real estate sale since February and was trying to time the market, and this is where his advisor and I were on the same page, just invest if not needed. Friend missed the boat on distributions and growth. Sigh

#35 TurnerNation on 10.09.21 at 1:27 pm

2019 was a magical year wasn’t it?
The following companies IPO’d on the stock exchange.
Uber. Lyft. Zoom.

Mere months later when the global reset began, that cold week in March 2020, these companies were tasked to a pivotal role weren’t they? What timing indeed eh?
Uber, Lyft food deliveries – ghost kitchens – and they got the government contracts for ferrying people to injection sites, and now children to school in some US States.

I said this New System is to be run by the global corps.
Look this is why you all have a green pass. Look who is behind this, scroll down https://id2020.org/alliance

Next up wiping out the middle class via endless Mandates..
A Toronto HVAC company has begun firing workers. If your furnace croaks mid-winter? It may be a cold winter Comrade.

.Dozens of unvaccinated Windsor, Ont. hospital employees terminated(windsor.ctvnews.ca)

.Canada faces wave of terminations as workplace vaccine mandates take effect: lawyer (ctvnews.ca)

—-
— Are we still banging pots and pans at 7pm?

https://www.townoflaronge.ca/vaccination-of-health-workers-dubey-asks-for-professional-orders-to-tighten-the-screw/
“Health and Social Services Minister Christian Dube on Friday recommended that professional orders of health workers, including nurses, licensed practice nurses and respiratory therapists, revoke the training licenses of their members who have not been adequately vaccinated. However, many of these orders require further clarification before proceeding.”

#36 Shawn Allen on 10.09.21 at 1:31 pm

K.C.’s anti-vax anti-big brother response to me at 29

Careful dude, Garth let your post stand this time but might not next time.

I will give you no response except to reiterate my view that your anti-vax views (if spread) are literally contributing to deaths (maybe even your own) and bad outcomes and clogged hospitals at this minute. Let THAT sink in and for more than a minute.

#37 baloney Sandwitch on 10.09.21 at 1:38 pm

Nothing wrong with banks pushing their own products. It will open opportunities for entrepreneurs like yourself. Too many iffy mutual funds and etf’s already. Its not as if we are starved for choice. People seek out the good ones like mawer.

#38 Tony on 10.09.21 at 1:38 pm

If they really wanted to be Canadians save and invest for their future and help them pay no out of pocket annual fees, exit fees, redemption fees, trading fees etc. bring back savings bonds and higher rates for savings bonds, GIC’s. term deposits, savings accounts.

If you ask most people if they could get 5% to 7% a year for 6 months to 5 years maybe even up to 10 years terms which would come in hand for RRIF’s, LRIF’s in a savings bond, term deposit, GIC and there were and are no annual fees, exit fees, redemption fees, trading fees etc. no fees at all with savings bonds, term deposits, GIC’s, they would gladly save, invest more and do more RRSP’s, RESP’s, TFSA’s and other tax advantaged plans. There is something today to say about being no fees, simple and decent interest rate rate paid, compounded on your investment and many plans to do it with that are tax advantaged.

If most Canadians had or would max out their RRSP, TFSA, RESP for their family earning 5% to 7% compounded over 25 years+ instead of plowing it into a bigger mortgage or extra mortgage on other real estate properties, they will be financially well off and not so debt ridden. The average Canadian pay is $58,000 a year which means $10,440 annual RRSP contributions and $5,500 annual contributions is almost $16,000 a year 65% tax deferred, 35% tax free of this total investments, savings growing at 5% to 7% simple, guaranteed, compound interest. There is a simple, straightforward financial, societal solution. They don’t want to do it, regulators, Bank of Canada, banks, trust companies, credit unions and others. They are failing us all.

#39 Penny Henny on 10.09.21 at 1:39 pm

#9 Flop… on 10.09.21 at 10:48 am
“These reforms include changes to a key regulation, called “know-your-product” or KYP rule, which is at the heart of the recent changes at some Canadian banks.”

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

This is not really all that new, for years the banks have been grabbing the KY gel and telling their clients to bend over…

M47BC
/////////////////

and not even a reach around :(

#40 R on 10.09.21 at 1:41 pm

Elon Musk is not only an engineer, he is the “Engineer’s Engineer”. If you truely understood that, and understood how difficult and ground breaking Tesla & Space X are, you would understand how large these companies will become within the next 5-10 years. The TAM( Total Addressable Market) is larger than Apple, Amazon & Google combined. Tesla alone is a renewable energy utility and the “auto” sector is actually visual artificial intellegence .Space X will be a world wide internet provider (Star Link) and a rapid transport company ( New york to Singapore in 1/2 hour with reusable Starship launch and landing facilities). Be on the right side of change( Cathie Wood)

#41 Habitt on 10.09.21 at 1:41 pm

Thanks again Ryan. Awesome post.

#42 facts on 10.09.21 at 1:50 pm

DELETED (Anti-vax)

#43 crowdedelevatorfartz on 10.09.21 at 1:56 pm

That “Tesla guy” seems to be everywhere these days…

Imagine what he could have achieved if he had a degree….. in climate science instead of a BA in Physics and a BSc in Economics….

https://www.reuters.com/technology/tesla-hopes-build-5-10000-vehicles-week-berlin-plant-musk-2021-10-09/

He might have done something to combat Global Warming like inventing a better lightbulb…..
What a loser.

#44 Sydneysider on 10.09.21 at 2:24 pm

19 Shawn Allen on 10.09.21 at 11:52 am

The anti-vaxxers are the Emmanuel Goldsteins of our our society. 5 mins of hate, and off we go to our day.

#45 Dogman01 on 10.09.21 at 2:39 pm

#30 Shawn Allen on 10.09.21 at 12:55 pm

Ha, ironic. My Wife wants me to commute ASAP, “if they can change the rules on you with no consultation they can do it again….”

Like Darth Vader: “I Am Altering the Deal, Pray I Don’t Alter It Any Further.” https://www.youtube.com/watch?v=3D8TEJtQRhw

Me; well I am “mathing shit up”.

The three legged stool has merit; pension, CPP\OAS, Personal Investments.

But taking away the parachute to give you a seatbelt is always a bad sign.

In it may come down to a “trust” decision and unfortunately I am losing trust in Canadian institutions.

#46 Faron on 10.09.21 at 2:53 pm

#31 Sail Away on 10.09.21 at 1:02 pm
#26 Faron on 10.09.21 at 12:36 pm
#101 Sail Away on 10.09.21 at 7:49 am

Elon Musk is not an engineer. Easily confirmed. LOL.

——-

Correct.

You are chasing your tail sir. You used his as an example of an innovative engineer. But, he’s actually an grifter who doesn’t know jack other than grifting.

#101 Sail Away on 10.09.21 at 7:49 am

The first commercially-successful electric car:

nope, he bought his way into Tesla and then ousted the founders through legal maneuvering.

The first publicly-available self-driving technology:

Except it’s an L2 system akin to those produced by all EOMs now. True self driving comes at L4-L5. thus not self driving. An engineer should know this.

Meanwhile, you can hop into an actual autonomous Waymo taxi in Phoenix and SFO now.

The first commercially-successful private space company:

SpaceX bleeds money and thus isn’t a “success”. Your firm is “commercially successful” does it lose money?

The first self-landing, reuseable rockets:

You may want to look up what NASA had accomplished long before TESLA.

Commercial space internet:

Uh, I used satellite internet as early as 2009. It was and remains a commercial product.

The world is slowly waking to how much snake oil and repackaged tech Elon has sold them.

Crowdedelevartorfartz: the answer is both. I hate frauds and have no respect for people who fall for them regardless of how much money they made on the stonk.

#47 Hannibal on 10.09.21 at 3:27 pm

Banks typically own a financial planning arm, a discount brokerage (fully open to all funds and etfs) and full service brokerage (fully open to all funds and etfs). Lots of choice for investors across all price points, even at the banks :)

#48 Joe on 10.09.21 at 3:28 pm

1) so much for fiduciary duty

2) who in their right mind deals with banks regarding investing

3) as i stated before i was in a Canadian bank and started talking about ETF’s, the rep said whats an ETF

#49 Quintilian on 10.09.21 at 3:31 pm

Just wow Ryan

Today’s post is truly didactic with an Shakespearian twist.

I can just see the big 6 banksters ,as well as Tiff Macklem looking up at the Investment Industry in an agonizing ear-piercing cry:

Et tu, Brute?

#50 Tripp on 10.09.21 at 3:37 pm

#8 Dolce Vita on 10.09.21 at 10:37 am

“ There should be NO CASES there with that level of vaxing – even in the unvaxd.”

Dolce, it looks really alarming. There must be an explanation.

Recently few European countries have removed all lockdown/passports/mandates provisions. They have admitted the virus is endemic and pushing the restrictions to nose-bleeding levels and coercing the population in getting the shot is not the answer.

Meanwhile, Canada is moving forward stubbornly on a heavy-handed approach. As usually, we are behind…

How’s Bella Italia doing?

#51 facts on 10.09.21 at 3:39 pm

DELETED (Anti-vax)

#52 Stone on 10.09.21 at 3:48 pm

#23 Do we have all the facts on 10.09.21 at 12:15 pm
As I understand the CMT designation it indicates that a financial advisor is focussed on the intrinsic value of assets when compared to the current or past market value.

The determination of intrinsic value for individual stocks can be based on traditional economic metrics. The intrinsic value of ETF’s is more difficult to determine since it could involve the detailed analysis of hundreds of companies.

In 2021 the majority of investment decisions seem to be based on increasing market values that are generating significant capital gains for investors. The increase in P/E ratios of many companies seems to indicate that market values might be exceeding intrinsic values.

Garth has consistently referred to his fiduciary obligation to clients and I was wondering whether a CMT certification obligates a financial advisor to discuss the intrinsic value of each investment opportunity with existing or potential clients.

Where does an honest assessment of the potential risk associated with an investment opportunity begin or end.

———

Who cares! Do you think some designation acronym behind a person’s name guarantees the person will do what’s in the customer’s best interest? Get real. Also, the word “fiduciary” is thrown around like it’s an actual thing when in Canada, it is meaningless and unenforceable.

Here’s another way of looking at it. Go learn how it all works yourself. Then, either you manage your own money or have someone manage it for you while you can understand why they place it the way they do for you.

But yeah, I know…too much effort. But by all means, spend hours on end deciding if you want to buy ruffled chips or the original because that…is time well spent.

#53 kc on 10.09.21 at 4:00 pm

DELETED (Anti-vax)

#54 kc on 10.09.21 at 4:11 pm

DELETED (Anti-vax)

#55 DON on 10.09.21 at 4:18 pm

Thanks for the info.

We can only hope the realtors will be regulated by
KYE (Know Your Ethics) in the not so distant future.

#56 When Will They Raise Rates? on 10.09.21 at 4:32 pm

DELETED (Anti-vax)

#57 Shawn Allen on 10.09.21 at 4:36 pm

Pension Commuted Vales

#45 Dogman01 on 10.09.21 at 2:39 pm
#30 Shawn Allen on 10.09.21 at 12:55 pm

Ha, ironic. My Wife wants me to commute ASAP, “if they can change the rules on you with no consultation they can do it again….”

**********************
Did they actually change the rules or was this just the result of the interest rates on which the calculation is based changing?

If the rules were changed was there really no consultation? There is a pension Board. I have not heard of government-mandated rules changing.

Before freaking out your wife might want to know exactly what happened.

Friend of mine, very good investor, quit lucrative government job to grab commuted value at age 53. Actually, he was scared the generous commuted value rules would change or interest rates would rise. Regretted his decision later. It’s a lot of responsibility to look after a couple million dollars. (Commuted plus RRSP etc.)

I wanted out so retired at 55 to take the pension. Could have taken commuted value if I retired literally one day earlier. Had no interest in it. Happy to have my check arrive each month while my healthy RRSP grows untouched. I have balance. I have lower stress.

#58 Ryan Lewenza on 10.09.21 at 4:39 pm

Dogman01 “ Any whiff of Funny business with discount brokerages? I assume they would not limit options there just with their in house FA.”

No impact to self directed accounts. This change only applies to financial planners in the banks. – Ryan L

#59 Ryan Lewenza on 10.09.21 at 4:41 pm

Shawn Allen “ Ryan, will the big banks still offer all those competitor (non-inhouse) mutual funds to their direct investor do-it-yourself clients?”

Yup, no change there. – Ryan L

#60 Sheesh on 10.09.21 at 4:50 pm

50 Tripp on 10.09.21 at 3:37 pm
#8 Dolce Vita on 10.09.21 at 10:37 am

“ There should be NO CASES there with that level of vaxing – even in the unvaxd.”

Dolce, it looks really alarming. There must be an explanation.
…………..

Well before we get too excited, read the entire article. Only 74% of the ENTIRE population is fully vaxxed, the virus doesn’t care if you’re under 12. So not at herd immunity yet.

The article also mentions that is spreading through pockets of the un/under vaxxed population.

Canadian data is showing that delaying the second dose may actually have produced an even better antibody response, and therefore better protection (even against Delta), than following the recommended schedule.

#61 Do we have al the facts on 10.09.21 at 5:01 pm

#52 Stone

My question to Ryan was whether his CMT designation increased his fiduciary obligation to discuss intrinsic value. CMT qualification focuses on technical analysis of intrinsic value and I was wondering whether that technical analysis was being applied to ETF’s based on a basket of of assets.

Does any investor really know what the intrinsic value of the S & P 500 is at a given point in time? The whole show seems to be driven by the rate of return generated as extrinsic value increases.

I am not sure anyone is looking behind the curtain anymore.

#62 Barb on 10.09.21 at 5:11 pm

Simply a knee-jerk reaction by banks to T2s tax threat.
“So there,” say the banks.

Plus now banks won’t have to hire people with more than a grade 8 education.

#63 Pbrasseur on 10.09.21 at 5:11 pm

Canadian banks are a cartel, no wonder they behave like a cartel, like charging the most outrageous fees in the world. Not a problem when customers are captive.

I guess having the government backing their housing loans is not enough for them.

Not going to end well. But hey it’s different here right?

#64 ImGonnaBeSick on 10.09.21 at 5:23 pm

I don’t know… A whole lot of engineering went into Elon’s ideas… In fact, everything you use or create with was made a reality by engineers… Same can’t be said for weathermen…

#65 COW MAN on 10.09.21 at 5:29 pm

It would be more appropriate if the banks were regulated not to sell any of their own products.

Financial Advisors should never have a pecuniary bias as to what they sell to their clients. This coming from a former sales award winner with Investors Group.

#66 espressobob on 10.09.21 at 5:36 pm

ETFs are not all created equal. Many are managed, lack transparency, and act pretty much like a mutual fund. Good luck with those.

As a passive global index investor it makes sense to hold selective ETFs that track the major indices. They provide full holding disclosure along with low cost MERs and generally outperform managed ones over long-term periods. Cherry picking is a crap shoot.

Buyer beware…

#67 IHCTD9 on 10.09.21 at 5:38 pm

#11 Wrk.dover on 10.09.21 at 11:02 am
Hey IHCTD9, Speaking of inflation and severance, what are the odds your ‘farm’ was more than 4 acres during your lifetime. I’m guessing it was worth 10% of what you paid for it, earlier in your short at that time lifetime.

We gleefully paid 10.4 G for our 40 acres to the man that had swapped a new 8hp ride on lawn mower for it two years prior. The lawn mower recipient had paid $500 shortly before then. Ten years on, I repatriated 1/4 acre that had been severed, for 2G.

Inflation comes and goes. Adjust. Keep the toys you will want later. Uppa
———

No idea – it was still an active farm in the mid seventies, so probably wasn’t severed yet. I paid 123k which was cheap even in ‘01, but the place needed work. I do know the guy I bought it from paid 95K for it. If I got two lots off, they’d probably be worth 250k for both right now, maybe more.

As for toys, I’m now down to two dozers as I kijiji’d one off last week. I’m going to work my way down to one. The toys are indeed going uppa – good time to sell.

Inflation’s never bothered me, my overall COL is only going down from here.

I’d like to know the 1870 cost on the original whole farm – 600.00? Bet that’s not far off!

#68 Dogman01 on 10.09.21 at 5:43 pm

#57 Shawn Allen on 10.09.21 at 4:36 pm

This is what I was told: Effective April 1, 2020 changes were made to commuted value calculations. Specifically, the calculation changed from a formula set by the Canadian Institute of Actuaries based on Government of Canada bond yields to a new formula based on a pension plan’s actuarial discount rate. The old formula assumes an investment return of around 2.3% per year while the new formula will uses a much higher assumption specific to each pension plan, 5.4% for the plan I am in. A higher investment return assumption results in a lower commuted value for those owed deferred pensions.

Now as a deferred pension member , Had I been informed of this significant impact on commuted value , I would may have been inclined to have commuted last year, dispute it being a bit less optimal for my personal yax situation.

While my pension plan is saying “it does not effect your pension”, this fait accompli, of $155K, ($100K difference net after tax) certainly gives me pause in trusting these guys for the next 30-40 years.

Now yes, the pension is like having a big perpetual 5.2% bond, 60% indexed to inflation.

#69 When Will They Raise Rates? on 10.09.21 at 5:58 pm

DELETED (Anti-vax)

#70 Dolce Vita on 10.09.21 at 6:03 pm

#50 Tripp

Italia doing great (so far). Covid, 2,748 new cases and 46 deaths. The positivity rate is 0.8%. Been like this for 2 months. Rt stable at 0.83. # of hospital and ICU beds dropping daily. They are still testing a lot, today at 345K tests.

Finally, Football games to 75% capacity as of today (discos, cinemas etc. at 100%). San Siro here I come to cheer on Milan AC!

#60 Sheesh

Even if cases from the unvaxd young those +12 vaxd numbers in the population should have rendered them safe via herd immunity, ++80% to 90%.

Think it thru based on the vaxd numbers of 12+. The unvaxd young should have been rendered harmless by those surrounding them.

I believe they are in need of a booster shot 12+. Moderna vaxing there started in March. 8 months have transpired. My guess is it’s wearing off and they are going to have to give them a booster, which they said they will.

In Italia the booster already started Oct 4. 80+ & healthcare workers in my Region. Today green light for +60 from the Health Ministry.

It will be like the yearly flu shot + Covid shot from now on in…the new “normal”.

#71 Dogman01 on 10.09.21 at 6:16 pm

#57 Shawn Allen on 10.09.21 at 4:36 pm

One more thought…perhaps having the pros hired as Financial Advisors, they may have been aware\ alerted to these impending changes, and following the “know your client” , may have delivered timely information and advice.

Do it yourself investing does expose you to the risk of “unknown unknowns”

and yes I agree , my vexation is a nice problem to have.

#72 Ronaldo on 10.09.21 at 6:22 pm

#58 Ryan Lewenza on 10.09.21 at 4:39 pm
Dogman01 “ Any whiff of Funny business with discount brokerages? I assume they would not limit options there just with their in house FA.”

No impact to self directed accounts. This change only applies to financial planners in the banks. – Ryan L
—————————————————————-
I don’t think they should be considered Financial Planners. They are simply mutual fund salespeople. There is a lot more to financial planning than what these people provide and everyone’s situation is different.

#73 Dolce Vita on 10.09.21 at 6:29 pm

Hara-Kiri loving took the plunge and bought USOI. Have ordered Seppuku set from Amazon.it.

Basically a derivative where they take your money and use it to make a Covered Call on USO.

It’s a side bet, no more, no less. They don’t own USO until you give them the cash.

They call themselves an ETN which is absolute bullsh!t. Investopedia version of them is even more bullsh!t: a Note or Bond with a Coupon…as if.

———

1st dividend payment received at 21.2%. +5% past month share price, +18.44% YTD.

They make money on selling covered calls and give you a chunk of that in dividends (or in USOI or Investopedia PC speak “coupons”).

I like it because attached to USO and divorced from the S&P. Read the Candle Stick chart and guess where it is going (S&P and USO superimposed FYI):

https://i.imgur.com/s36LPvU.png

This low $ play by me is EXTREMELY RISKY. Fact sheet:

https://notes.credit-suisse.com/api/DocFile/GetFactSheet/USOI

In their 191 page prospectus, somewhere there it says the value can go to ZERO (had bookmarked it and can no longer find it, but it’s there alright):

https://notes.credit-suisse.com/api/DocFile/GetProspectus/USOI

Then again all stocks can go to ZERO but this one has a Beta of 2.23 – let that sink in.

TIP:

As long as the Oil Spot price < Oil Futures price USOI will do OK (Contango). Best write up on it so far I have read is by Seeking α.

—————–

Will let you all know every so often if my Threadbare Portfolio becomes yet more threadbare and if this was a fools errand of greed.

For me I wanted some excitement, get the old ticker pumping again every AM when I check up on Mr. Market and USOI.

#74 mark on 10.09.21 at 6:47 pm

This kind of stuff was essentially killed off in Australia, because all the bank advisers did was stuff their clients into their own high fee garbage funds and rip clients off. They had to have some justification for the products they recommended as being the most suitable for the client.

When they couldn’t vertically integrate as easily anymore (their only real interest in financial advice) they hightailed it out of the industry and left the genuine advisers to deal with the mess and increased compliance that came about because of their actions.

#75 wallflower on 10.09.21 at 6:56 pm

right program. wrong industry

This should be rolled out to the Canadian real estate industry. Residential homes only sell to agents.
Right now, the agent says, I can list your home at $900K and maybe sell it for more. You negotiate to sell it. To the agent.
Buyers only purchase from regulated KYP agents.
Full disclosure on product.

This skanky real estate industry definitely requires 100% re-engineering.
This is a start …

#76 Chris L. on 10.09.21 at 7:00 pm

DELETED (Anti-vax)

#77 Faron on 10.09.21 at 7:13 pm

#64 ImGonnaBeSick on 10.09.21 at 5:23 pm

Weird how every major developed nation has a meteorology program. Almost as if it’s nigh essential service… I’m not a weather person, so can’t speak for them though. Love how this is now and either or argument in your pea brains. Go back and read my comments. Never said engineering isn’t useful and needed. My beef is that it’s often engineers who leap into debates about climate change and with shoddy info.

Glad you leapt off the bus to join us friend.

#78 Gravy Train on 10.09.21 at 7:37 pm

#25 Nonplused on 10.09.21 at 12:26 pm
“[…] It’s sort of like the climate debate. On the one side you have Greta and her handlers,[…]” You left out two of the winners, Syukuro Manabe and Klaus Hasselmann, of the 2021 Nobel Prize in Physics for “la[ying] the foundation of our knowledge of the Earth’s climate and how humanity influences it.”
https://www.nobelprize.org/prizes/physics/

Your straw man is laughable! Please forgive me for interjecting; I normally just try to ignore your idiotic rambles. :)

#79 Leafblowers are a godsend on 10.09.21 at 7:53 pm

Did Elon event them or Dyson…. nothing matches the glorious sound at 7am

#80 Nonplused on 10.09.21 at 7:54 pm

#78 Gravy Train on 10.09.21 at 7:37 pm
#25 Nonplused on 10.09.21 at 12:26 pm
“[…] It’s sort of like the climate debate. On the one side you have Greta and her handlers,[…]” You left out two of the winners, Syukuro Manabe and Klaus Hasselmann, of the 2021 Nobel Prize in Physics for “la[ying] the foundation of our knowledge of the Earth’s climate and how humanity influences it.”
https://www.nobelprize.org/prizes/physics/

Your straw man is laughable! Please forgive me for interjecting; I normally just try to ignore your idiotic rambles. :)

————————–

In English a second language for you? I was raising a question about at what point speech should be censored using the climate thing as an example. I was not attempting to write a thesis on who all has done what research, or the merits thereof.

#81 When Will They Raise Rates? on 10.09.21 at 8:19 pm

#67 IHCTD9 on 10.09.21 at 5:38 pm

#11 Wrk.dover on 10.09.21 at 11:02 am
Hey IHCTD9, Speaking of inflation and severance, what are the odds your ‘farm’ was more than 4 acres during your lifetime. I’m guessing it was worth 10% of what you paid for it, earlier in your short at that time lifetime.

We gleefully paid 10.4 G for our 40 acres to the man that had swapped a new 8hp ride on lawn mower for it two years prior. The lawn mower recipient had paid $500 shortly before then. Ten years on, I repatriated 1/4 acre that had been severed, for 2G.

Inflation comes and goes. Adjust. Keep the toys you will want later. Uppa
———

No idea – it was still an active farm in the mid seventies, so probably wasn’t severed yet. I paid 123k which was cheap even in ‘01, but the place needed work. I do know the guy I bought it from paid 95K for it. If I got two lots off, they’d probably be worth 250k for both right now, maybe more.

As for toys, I’m now down to two dozers as I kijiji’d one off last week. I’m going to work my way down to one. The toys are indeed going uppa – good time to sell.

Inflation’s never bothered me, my overall COL is only going down from here.

I’d like to know the 1870 cost on the original whole farm – 600.00? Bet that’s not far off!

——————-

Interesting… I’ve been talking to farmers/acreage owners in my area and they are all leveraging their current land as collateral to buy more farm land… They all say that the cost/acre has gone way up…

I’m curious as to where you think a good area would be to buy acreage/farm land right now?

I’m in Bluewater, Ontario atm, but am willing to entertain anywhere in Ontario or Alberta, looking to possibly buy in the spring, long term hold, pass on to my toddler son in the future.

Any thoughts?

#82 Flop… on 10.09.21 at 8:20 pm

Flop’s Hypothetical Thought Of The Day.

A tree just came through my roof.

I’m debating whether I should call a building contractor to fix the roof straight away, or call a climate scientist to see if more rain is going to be coming through the hole in my roof in a hundred years time…

M47BC

#83 naga on 10.09.21 at 8:30 pm

Ryan – simple strategy buy the banks, individually or the ETF. Why fight a winner?

#84 The joy of steerage on 10.09.21 at 9:07 pm

#82 Flop… on 10.09.21 at 8:20 pm
Flop’s Hypothetical Thought Of The Day.

A tree just came through my roof.

I’m debating whether I should call a building contractor to fix the roof straight away, or call a climate scientist to see if more rain is going to be coming through the hole in my roof in a hundred years time…

M47BC

I believe you are a gov employee ….i think you should form a committee… maybe even get a commission onto it…. and study the hole for a while… it may even be bottomless…

#85 Drinking on 10.09.21 at 9:15 pm

DELETED

#86 Lead Paint on 10.09.21 at 9:44 pm

#36 Shawn Allen on 10.09.21 at 1:31 pm

Extremism goes both ways. Calling everyone who doesn’t want endless mRNA vaccinations for children, or for those with natural immunity ‘anti-vaxxer’ is hate speech.

#87 crowdedelevatorfartz on 10.09.21 at 9:56 pm

@#77 Faron
“Glad you leapt off the bus to join us friend.”

+++

I’m surprised you didn’t tell him to “Stay out of it”.

Progress of any sort….is still progress I suppose.

#88 Ponzius Pilatus on 10.09.21 at 9:59 pm

Regarding Musk:
On of the most respected Newsweekly in Europe “Der Spiegel” has him on their cover of their latest edition.
The call him “The Out of this World Man”.
In my opinion, “Space Cadet” is still the best moniker for him.

#89 Faron on 10.09.21 at 10:00 pm

#82 Flop… on 10.09.21 at 8:20 pm

If that is a decision you actively make I imagine you decide between grabbing a knife from the kitchen or a trowel from the garage when you butter your toast in the morning. Wether you sometimes consider replacing a worn tire on your car with a donut.

#90 crowdedelevatorfartz on 10.09.21 at 10:01 pm

Hmmm.
The anti vaxx’ers refuse a vaccine that is Govt approved.
Used by billions with little to no ill effects….

But they will take a veterinary parasite dewormer “cure” ( Ivermectin) because some quack on the Internet recommended it.

https://edmonton.ctvnews.ca/substantial-increase-in-calls-to-alberta-poison-info-line-about-unapproved-covid-19-remedy-1.5616044

Darwin Award winners need a new category….

https://www.youtube.com/watch?v=tldGgGFe194

Forest Gump Award ?

#91 Ponzius Pilatus on 10.09.21 at 10:06 pm

#84 The joy of steerage on 10.09.21 at 9:07 pm
#82 Flop… on 10.09.21 at 8:20 pm
Flop’s Hypothetical Thought Of The Day.

A tree just came through my roof.

I’m debating whether I should call a building contractor to fix the roof straight away, or call a climate scientist to see if more rain is going to be coming through the hole in my roof in a hundred years time…

M47BC

I believe you are a gov employee ….i think you should form a committee… maybe even get a commission onto it…. and study the hole for a while… it may even be bottomless…
———-
Haha,
Both of you are not very smart.
Just call the damn roofer and fix it.
You’re confusing climate with weather.

#92 LewenzaCountry aka Prince Polo on 10.09.21 at 10:09 pm

ETFs all the way for the greaterfool crowd. For the uninformed masses, it’s more of the same high-MER fleecing. All that matters for the financial illiterates is getting an affordable monthly mortgage payment…so what if the Mutual Fund profits are simply silo’ed at each of the big5 banks?

#93 Meat loafer on 10.09.21 at 10:12 pm

#17 Dogman01 on 10.09.21 at 11:40 am
Grrrrr.

They changed the pension commute formula; biggly.
Instead of a parachute looks like they want you to have a seatbelt.

____________________________________________________

Sorry, Dogman01. When I left 4.5 years ago, I pretty well cleaned them out when I commuted my DB. No wonder they had to close the vault. Hey, not my problem they listened to a bunch of high-priced actuarials using some outdated formula that was never meant to be employed during unusually low interest rates.

Near record low interest rate at the time and more importantly … phenomenal returns in everything the money was invested in. Wife’s DB as well. Most has already doubled. Basically, I have the equivalent of a 35 year full pension after only 15 years when taking into consideration the time value of money.

What’s it gonna be boy?… yes or no?

#94 Sheesh on 10.09.21 at 10:22 pm

Dolce math strikes again! :)

“Even if cases from the unvaxd young those +12 vaxd numbers in the population should have rendered them safe via herd immunity, ++80% to 90%.

Think it thru based on the vaxd numbers of 12+. The unvaxd young should have been rendered harmless by those surrounding them”.

EXCEPT…your 90% (or whatever) fully vaccinated number only applies to the population who were eligible to be vaccinated in the first place.
If you include the currently ineligible portion of the population (kids under 12) then the vax rate falls to 74%…not enough for herd immunity from Delta. Capeesh?

#95 Nonplused on 10.09.21 at 10:27 pm

#91 Ponzius Pilatus on 10.09.21 at 10:06 pm
#84 The joy of steerage on 10.09.21 at 9:07 pm
#82 Flop… on 10.09.21 at 8:20 pm
Flop’s Hypothetical Thought Of The Day.

A tree just came through my roof.

I’m debating whether I should call a building contractor to fix the roof straight away, or call a climate scientist to see if more rain is going to be coming through the hole in my roof in a hundred years time…

M47BC

I believe you are a gov employee ….i think you should form a committee… maybe even get a commission onto it…. and study the hole for a while… it may even be bottomless…
———-
Haha,
Both of you are not very smart.
Just call the damn roofer and fix it.
You’re confusing climate with weather.

——————————————-

Just leave it. If you fix it another tree will fall on it. It’s sort of like hail damage on your car. Take the payout and leave it.

#96 Ponzius Pilatus on 10.09.21 at 10:35 pm

#90 crowdedelevatorfartz on 10.09.21 at 10:01 pm
Hmmm.
The anti vaxx’ers refuse a vaccine that is Govt approved.
Used by billions with little to no ill effects….

But they will take a veterinary parasite dewormer “cure” ( Ivermectin) because some quack on the Internet recommended it.

https://edmonton.ctvnews.ca/substantial-increase-in-calls-to-alberta-poison-info-line-about-unapproved-covid-19-remedy-1.5616044
————
An old Albertan saying:
What’s good enough for my horse, is good enough for me.
(Just making this up, so don’t get worked up, my fellow Albertan blog dogs)

#97 cramar on 10.10.21 at 12:05 am

Speaking of banks…when are they going to be allowed to raise dividends?

#98 Wrk.dover on 10.10.21 at 7:04 am

#81 When Will They Raise Rates? on 10.09.21 at 8:19 pm
I’m curious as to where you think a good area would be to buy acreage/farm land right now?

I’m in Bluewater, Ontario atm, but am willing to entertain anywhere in Ontario or Alberta, looking to possibly buy in the spring, long term hold, pass on to my toddler son in the future.

Any thoughts?
____________________________________

I have no knowledge of these places to offer.

But I would certainly do meteorology diligence first.

Just because an area has produced crops well historically, it does not mean the precipitation and temperature balance currently trending will be there in the future to repeat the successes of the past.

Where ideal farming weather is shifting to from the grain belt, is more northerly, where the soil is unsuitable, is my current understanding of this topic.

#99 Impacted Financial Planner on 10.10.21 at 7:41 am

Hi Doug et al

Imagine being one of those financial planners who has a CFP and other designations requiring a fiduciary duty of the holders.

The shift to proprietary investments makes it essentially impossible to act in a client’s best interest. The folks making the decision were not interested in hearing my concerns (although one did resign, which while encouraging, was too little too late).

I resigned as well and can once more make objective recommendations (and be significantly more flexible with regards to fees, which is refreshing).

There is no doubt in my mind that the exodus will continue or even accelerate.

I’m surprised nobody in the media has picked up on the “loyalty bonuses” ranging from 10-50k to “encourage” planners to hold their nose and put their ethics aside and recommend investments that aren’t necessarily best for clients (email me directly for confirmation if desired).

#100 Jane Finch on 10.10.21 at 9:31 am

Tiff told us an inflation whopper….why? No one outside the zany influence of the CBC believed him.

https://www.cnbc.com/2021/10/08/strong-wage-gains-cast-doubt-that-inflation-is-going-away-anytime-soon.html

#101 crowdedelevatorfartz on 10.10.21 at 9:55 am

@#89 Faron
“Wether you sometimes consider replacing a worn tire on your car with a donut.”

++++

I’m mortified.
A climatologist that misspelled whether?
Oh the irony.

#102 Ryan Lewenza on 10.10.21 at 9:57 am

Impacted Financial Planner “ Hi Doug et al

Imagine being one of those financial planners who has a CFP and other designations requiring a fiduciary duty of the holders.

The shift to proprietary investments makes it essentially impossible to act in a client’s best interest. The folks making the decision were not interested in hearing my concerns (although one did resign, which while encouraging, was too little too late).

I resigned as well and can once more make objective recommendations (and be significantly more flexible with regards to fees, which is refreshing).

There is no doubt in my mind that the exodus will continue or even accelerate.

I’m surprised nobody in the media has picked up on the “loyalty bonuses” ranging from 10-50k to “encourage” planners to hold their nose and put their ethics aside and recommend investments that aren’t necessarily best for clients (email me directly for confirmation if desired).”

Thank you for sharing that comment and colour. I hadn’t heard about that ‘loyalty bonus’ and is evidence that this decision was based on the bottom line and not what’s best for the clients or planners. And I commend you for resigning and staying true to your ethics and duty to your clients. We need more people like you in the industry. Lastly, we’re considering adding a third financial planner to our team so if you know of any disgruntled and qualified planners looking to make a change have them email me at [email protected]. Thanks again for your comment. – Ryan L

#103 Ryan Lewenza on 10.10.21 at 9:59 am

Cramer “ Speaking of banks…when are they going to be allowed to raise dividends?”

Soon. I would say within 3-6 months. – Ryan L

#104 crowdedelevatorfartz on 10.10.21 at 10:01 am

@# 99 Impacted CFP

“The shift to proprietary investments makes it essentially impossible to act in a client’s best interest.”

+++

Sadly.
The organizations “pumping their own product” don’t want people with ” the clients best interest” at the table.

They want “team players” with a lust for juicy sales commissions.
And if they get caught pumping and dumping ( like Realtors?) …

They pay a small fine, are banished for a few weeks or months ( insert work sabbatical here) and a year later are back to the same old scam.

It’s another grubby headline that ruins it for all certified financial planners.

#105 IHCTD9 on 10.10.21 at 10:16 am

#81 When Will They Raise Rates? on 10.09.21 at 8:19 pm

Interesting… I’ve been talking to farmers/acreage owners in my area and they are all leveraging their current land as collateral to buy more farm land… They all say that the cost/acre has gone way up…

I’m curious as to where you think a good area would be to buy acreage/farm land right now?

I’m in Bluewater, Ontario atm, but am willing to entertain anywhere in Ontario or Alberta, looking to possibly buy in the spring, long term hold, pass on to my toddler son in the future.

Any thoughts?
———

If I were to spec RE, I’d stick to the ever receding ring of affordable land/houses surrounding big centres like the GTA. But remember it took a pandemic, stupid low rates for 2 decades, and years of fiscal policy designed to pump house prices, to push the frenzy into my hood 2+ hours from the gta.

The question is then, will these conditions continue? They will need to for you to win on some far flung RE. We’ve got a Trillion in federal debt, another Trillion in Provincial debt, over 2 Trillion in mortgage debt, and about 19 million workers to support it all. Tax increases must be on the way, inflation climbing all over the world, RE trouble in China. All that has to happen is to have the rock solid faith in RE getting shook by some global event, and 20 years worth of RE bloat could turn on a dime. Then you’re stuck with it. All this stuff is brand new.

You do you, but IMHO our RE is in the red zone. I don’t want anything to do with the entire RE industry. Right now gta realtors are holding offers on shitty old 300k dump shacks 2 hrs from Toronto. I can’t wait for the whole thing to blow sky high. I hope it blows and takes 30 years to recover. Our RE is a game of Russian Roulette at this point, better to let others point the gun to their heads.

#106 crowdedelevatorfartz on 10.10.21 at 10:21 am

@ IHCTD9

2 billion internal combustion vehicles on the planet…. and the end of oil in our lifetime?

https://www.reuters.com/business/autos-transportation/no-time-battery-die-bonds-aston-martin-goes-electric-2021-10-08/

Time to draw up some conversion plans for the D9?

#107 Shawn Allen on 10.10.21 at 11:34 am

Great News for Pension Plans … Bad news for those wanting commutted values

#68 Dogman01 on 10.09.21 at 5:43 pm responded:

“#57 Shawn Allen on 10.09.21 at 4:36 pm

This is what I was told: Effective April 1, 2020 changes were made to commuted value calculations. Specifically, the calculation changed from a formula set by the Canadian Institute of Actuaries based on Government of Canada bond yields to a new formula based on a pension plan’s actuarial discount rate. The old formula assumes an investment return of around 2.3% per year while the new formula will uses a much higher assumption specific to each pension plan, 5.4% for the plan I am in. A higher investment return assumption results in a lower commuted value for those owed deferred pensions.”

Meat Loafer at 93 also nailed the issue of why commuted pension values or Pension Solvency calculations should not be done with these ultra low bond interest rates versus what the pensions actually reasonably expect to earn on the money (invested in a diversified and balanced manner).

We had a situation where pensions were being calculated as under-funded if they did not have enough money to fund pensions assuming all the money went into long-term bonds (even government bonds in some cases paying diddly). With vast increases in contributions most pension plans (especially government) are now calculated as at least adequately funded.

Commuted values were too rich and Meat Loafer at 93 is exactly right in saying he was allowed to “clean them out” by commuting. Good for him, bad for the pension plan though.

If pension funding was also now allowed to be calculated using something closer to reasonable expected returns then most of them will be vastly over-funded. Think 100% over-funded. This will not likely be done as under the rules because that would lead to pension contribution holidays. They will likely stick with the current VERY conservative going concern and solvency calculations meaning most pensions (especially government plans) are adequately funded in form but vastly over funded in substance (reality). This is all the more the case if members cannot run off with the former too-generous commuted values.

#108 Shawn C Allen on 10.10.21 at 11:44 am

Debt math with IHCTD( numbers from 105

“We’ve got a Trillion in federal debt, another Trillion in Provincial debt, over 2 Trillion in mortgage debt, and about 19 million workers to support it all.”

*****************************
Well, don’t leave us hanging, let’s do the math.

That’s an average $211,000 in debt per worker by my calculation. I guess that’s a lot. I’ll leave it to others to conclude what it means.

Well okay, here’s a bit of context. That’s only 20% of the cost of a house in Vancouver and B.C.

Ponderous…

#109 IHCTD9 on 10.10.21 at 11:49 am

#106 crowdedelevatorfartz on 10.10.21 at 10:21 am

Time to draw up some conversion plans for the D9?

———-

Yes, I have plans to convert it into cash :)

#110 Jerome on 10.10.21 at 12:19 pm

Tony’s comments are interesting as even at 5% interest rates compounding interest in someone’s RRSP, TFSA contributions, $16,000 a year going by his numbers over 25 years is $763,633. This is not even reinvesting the yearly tax refunds from the RRSP contributions. If we assume 30% tax rate, this is $3,132 a year($10,440*18%=$3,132). This means after taxes paid annually on 5% interest rate at 30% tax rate, 3.5% net after tax interest rate, reinvested for 25 years the annual $3,132 principal results in $122,000 from the 25 years of RRSP tax refunds. The total money in 25 years is $885,633 in a RRSP, TFSA, non-registered. This is for one person. I wonder why they lowered interest rates? This is why.

My father was getting easily getting 6% in a savings account and 8% to 11% on term deposits for at least 20 years. Canadians will never recover and be always in high debt, high property taxes and expenses from real estate, inflation, cost of living and little to no savings, investments and rely on reverse mortgages, lines of credit, heloc’s, credit cards, personal loans, payday loans and other debt schemes for all their lives. What regulators?

#111 Wrk.dover on 10.10.21 at 12:47 pm

#110 Jerome on 10.10.21 at 12:19 pm
My father was getting easily getting 6% in a savings account and 8% to 11% on term deposits for at least 20 years.
_______________________________

There you have it millennials; the Greatest Generation, (the one before the Boomers), is the one that shit in the nest.

#112 Sail Away on 10.10.21 at 1:02 pm

For autonomy over investments without regulatory meddling, consider South Dakota. All are welcome to camp or RV at our undeveloped acreage bordering the Grasslands. Heck, after talking with the financial folks, you may choose to buy an adjacent property!

#113 Dragonfly 58 on 10.10.21 at 1:05 pm

TD9 and other , I find crawlers do way too much damage to the yard. Rubber is much better on smaller plots. Unless you have a gravel pit out back.

#114 Faron on 10.10.21 at 1:22 pm

#112 Sail Away on 10.10.21 at 1:02 pm

Cool, then we’d have immediate access to a grammar Nazi and spell checker-in-chief who would asses hip issues in our otherwise lovely and loving pets. We could be regaled with Andy Ngo reading. Sounds grand.

Also, here’s the engineer’s engineer literally dazed and confused at the opening of his German toy factory. Compare with presentations by any CEO of any real company (i.e. Tim Cook Apple). Guy’s an embarrassment.

https://t.co/4TKVXec3aL?amp=1

#115 Fred on 10.10.21 at 1:45 pm

Wrk.dover, if you don incentivize people to save their money called interest 4% to 10% minimum, depending on real inflation, cost of living not the stats they give us, you will have too much people in debt and in physical real estate, relying on too much borrowing on properties and not having a way to enough, decent income in life.

Interest rates were also used as a tool to control speculation and abuse of debt of all kinds, government, business, consumer and other entities in society plus keep the value of money in some type of reasonable check. What they are doing today just creating trillions and financing, borrowing at such low interest rates means they want your money to become worthless. It is that simple.

#116 Philco on 10.10.21 at 2:27 pm

#106 crowdedelevatorfartz on 10.10.21 at 10:21 am
@ IHCTD9

2 billion internal combustion vehicles on the planet…. and the end of oil in our lifetime?

https://www.reuters.com/business/autos-transportation/no-time-battery-die-bonds-aston-martin-goes-electric-2021-10-08/

Time to draw up some conversion plans for the D9?
—————————————————
Many examples of NOT happening. Maybe if your 4 years old? LOL
Just look at the UK….Ran out of wind in the north sea, ran out of power. Your fridge, heat pump and lights are caput. Juice is 3 fold (cause green is good) of what we pay in Kanada PLUS the mass majority of towns/old homes have street parking at best.
My neighbors sisters over from the UK. Her town has 50k peeps and 2 chargers there.
Gov’s and green bozos are pushing on a string.

Math approx 240v x 30 AMPs = 7000W per car. Most sheds have 100AMP service. There’s no head room in the panel.

#117 Baffled on 10.10.21 at 6:17 pm

Having dealt with Canadian banks all of my life I can assure you that they interpret KYP differently than you have described it. Translation to Canadian bank is K keep Y your P profits.

#118 Grunt on 10.10.21 at 7:14 pm

Thanks Ryan very insightful. Please do keep us tuned in the months ahead. In my view this country is pretty much limited by the ability of its banks.

#119 Tom on 10.10.21 at 11:18 pm

Take $75,500 put in for 3% GICs for 25 years and put $10,000 in RRSP each year get 3% a year GICs for 25 years and take $3,000 annual refunds put it in each year TFSA for 25 years in 3% GICs, voila, you have $750,000.