The choice

If Shane wasn’t real, we’d have to invent him. Manly. Handy. Articulate. Loyal. With dog.

“I’m 31, married to the most perfect wife for 3 years and most importantly have an 8 year old yellow Lab named Tucker who makes our small family whole,” he writes. “I have been reading your blog for almost two years now and for lack of a better word, my stubbornness has kept me from reaching out to you for advice.”

He’s a heavy equipment mechanic. She works in an office. Combined income over $200,000, two union pensions and a burning desire to sink roots. “A man isn’t fulfilled without purpose,” he says. And his purpose is simple and stark:

I have always been a modest person. I would sacrifice complete financial freedom for a roof and a lawn over my family’s head. A place close to my family where hopefully I can care for my parents in the future. Being able to keep active, work on cars and host gatherings for my friends. That to me is worth a lot more than a million dollars in a bank.

Here’s the story: Shane, perfect wife & Tucker bought a townhouse in 2017 and two years later sold, wanting to upsize to a detached home. They moved in with his mom to save some cash, and started looking. Then Covid. Then FOMO. “We were left on a whirlwind trip of broken dreams, rejected offers and a $275k chunk of cash doing nothing in the bank.”

They know the market is insane. A crapshoot. But it’s not so much about money any more as it is desire for a fabled and stable lifestyle. Some people in this life don’t want mobility, freedom, flexibility and choice. They need dirt. A driveway. Yard. Garage. With an eight-drawer rolling tool chest inside. And a suite for the old folks.

Which leads me to you. Now I’m not here to question your merits, or logic. This life is not sustainable; not sandwiched in my mom’s house, waiting for life and our money to pass us by. But I am a product of a generation of GICs and mattress accounts. While I want to invest, I would like to have that option to cash out and by a home. Where do I start? Where do I end? Is it possible? Am I brain dead?

Okay, Shane. Let’s parse this, and get past the sense of helplessness that made you reach out to a pathetic blog. A good starting point is the infamous GreaterFool Rule of 90. Take ninety, subtract your age and arrive at the amount of net worth that residential real estate should represent. The logic is that the young can support a lot more debt and survive on less equity than the oldies can (or should).

In this case current NW is $275,000. The formula (90-31) indicates that 59% of the money can be shovelled into a house in the form of a down payment, or roughly $165,000. Now, let’s say S found a property to buy for $900,000 (his location is unknown, but this is above the national average and given his job it’s a safe bet he’s not urban). The mortgage and insurance premium would take $3,200. Overhead costs (property tax, house insurance, maintenance) would add a grand, for a total monthly of about $4,200.

So the house would run just over $50,000 a year to carry (not counting the lost opportunity cost of the down payment). That amounts to 32% of after-tax household income. Yup, that’s affordable. And it leaves a hundred grand to put into TFSAs for Shane and the PW. Furthermore, they’d have thousands a month after household costs, transportation, car parts, beer and kibble, to sock into registered accounts plus a joint non-reg.

Remember the credo around here: if you want a house, need a house and can afford one without gutting personal finances, go ahead. In this case, Shane & co. meet the criteria. Decent savings. Good incomes. Defined goals.

But, Shane… there are things to remember, and live by to ensure eternal bliss.

  • Stop saving and learn to invest. The bank account is there only to hold cash about to be deployed. Every day money sits, instead of being placed in some nice, liquid, low-cost and diversified ETFs, it is losing value. Get rid of this habit.
  • Don’t obsess about paying off the mortgage. At just 2% it’s less than inflation, and meanwhile invested cash should grow by three times that amount. So invest steadily, then if rates rise above inflation by the time of renewal, use some portfolio growth to pay down the home loan.
  • Don’t assume a union pension will finance retirement. There’s no government or deep-pocket multinational standing behind that plan, and you have no idea about its viability in 30 years. So hammer cash flow into your own RRSP, which will also reduce taxable income by about $25,000.
  • And speaking of taxes, harness the big income disparity between you and the PW. Open a spousal RSP and make your allowable contributions into it. You still get the deduction but after three years the money becomes hers and can be withdrawn down the road at a lower rate. Also make her the main investor in the family, while you pay all the overhead. Her lower tax bracket will allow you to have higher after-tax investment returns.
  • Kids? They’ll change everything. You can man up for more advice when that happens. But cars and Labs are cheaper.

About the picture: “All of my skills and strengths that I applied in my paid employment (teacher, public servant) I am applying with great joy in my role as Dog Support Coordinator in our Victoria ElderDog Pawd,” writes Virginia. “I am sharing a little bit about our dogs and organization here, knowing that dogs (and community) are a feature of your blog. Maybe we could do a plug as we (and likely Pawds across the country) are always looking for volunteers! I’m also attaching a photo taken Friday of some of our volunteers enjoying a evening social on the Songhees walkway in Victoria. Feel free to use it in your blog!”

163 comments ↓

#1 Wrk.dover on 10.18.21 at 10:46 am

I would sacrifice complete financial freedom for a roof and a lawn over my family’s head.
________________________________

Will Park Lawn Cemetery in Etobi-choke suffice?

#2 Ponzius Pilatus on 10.18.21 at 11:01 am

#54 Ihtcd9
Both ATV’s will be going on the block also in the spring of 2022. The 22.5 L/100 km gas eating 2500HD is going on the block as I have just purchased a new (to me) diesel 3/4 ton that can do 9.5 L/100 km, yet still do everything I need it to do.
———————
Smart move.
Saw an AUDI E-Tron GT yesterday.
In Surrey, of all places.
Start selling your Tesla shares.

#3 Polozified on 10.18.21 at 11:22 am

My only question is:

if Shane’s primary motivation for having a house is taking care of his parents wouldn’t that have been fulfilled by, you know, moving in with his parents?

#4 SunShowers on 10.18.21 at 11:23 am

“He’s a heavy equipment mechanic. She works in an office. Combined income over $200,000, two union pensions and a burning desire to sink roots.”

Weird how we don’t seem to hear much from regular people who make the median Canadian household income ($63k after tax) and have no pensions to speak of.

Maybe if they came to a place like this they could be as successful as you. – Garth

#5 TurnerNation on 10.18.21 at 11:24 am

Bahahah – welcome to the continued rollout of Kanadian Kommunism. They pretend to pay us, we pretend to work.

“Ontario Liberals propose four-day work-week pilot project if …https://toronto.ctvnews.ca › ontario-liberals-propose-four-…
The Ontario Liberals say they will launch a pilot project to “analyze the potential for a four-day work-week” if elected in June ”


— the New System: global control by the UN-backed bankers. Under the guise of “Climate” you will own nothing and be happy!

“The Globe and Mail reports in its Saturday edition that Canada’s six largest banks are joining a global alliance, led by former central bank governor Mark Carney, that commits them to net-zero emissions targets tied to their lending. The Globe’s James Bradshaw writes that the Net-Zero Banking Alliance (NZBA) is an industry group convened by the United Nations to speed up efforts to combat climate change. Mr. Carney is a UN special envoy on climate action and finance. … As signatories, banks commit to reaching net zero in their lending and investment portfolios by 2050, but also to setting intermediate targets by 2030 or sooner.
© 2021 Canjex Publishing Ltd. All rights reserved.

————-
————-
The War on Small Business. Our elites know what they are doing. Crush the middle class.

.”The survey also found that 20 per cent of restaurants have lost staff and more than 60 per cent say they need to hire more workers. “It’s restrictions on top of restrictions,” says Todd Barclay, president and chief executive of Restaurants Canada. “It’s very labour intensive and time consuming to implement; restaurants are losing money.” (globeandmail.com)

———–
— Alllmost back to normal! Note: this WW3 is not meant to be won. Unlimited global power. And fear.

.New Zealand extends Auckland lockdown in battle on Delta variant (reuters.com)

‘Three-day snap lockdown for southern Tasmania (9news.com.au)

.Britain faces ‘wave of terror attacks plotted by bedroom radicals’: Security services warn ministers over new threat from ‘lone wolves’ who were radicalised online during lockdown (telegraph.co.uk)

#6 My choice my body on 10.18.21 at 11:37 am

DELETED (Anti-vax)

#7 westcdn on 10.18.21 at 11:42 am

There are brave men. One of may favorite movies is “Doctor Strangelove”. The characters were amazing. I miss Peter Sellers. His Pink Panther still make me laugh though I think the Godfather movies were more a piece of art.

The B52 is still flying. I remember the stories of the pilots saying they had to dodge telephone poles launched by the Viet. They did their mission for better or worse. My eldest daughter was in Tucson for a while. I went to visit.

There is a museum boneyard for aircraft nearby. So I borrowed her car to go and see. Amazing. There was a field of B52’s being used for parts. Man it was hot even in December. I saw evolution in aircraft, particularly jets.

I got to touch a SR71 on display. Mighty big. I heard stories they limped home with serious missile damage. The Russian pilots wanted to shoot it down. It was fast and the afterburners would set off the missile before contact.

The other aircrafts that impressed me were the B29 and the P51d Mustang. I admit I have a fondness for propellers.

#8 TurnerNation on 10.18.21 at 12:02 pm

^^ A reminder that Ontariowe has No full ‘reopening’ plans. There are no metrics, no goalposts. This is a hard RESET. CV is being used as cover. Not only here but globally. Daily changes.

—-
— Food Supply/Supply Chain shortages. If it’s true that famines are man (government) made…where’s all the stuff going to (seen elsewhere:)?

https://www.forbes.com/sites/kenroberts/2021/04/08/2021-us-exports-to-china-up-43-from-pre-covid-2019-imports-at-record-level/
“Apr 8, 2021,03:55pm EDT
2021 U.S. Exports To China Up 43% From Pre-Covid 2019, Imports At Record Level”

https://www.bloomberg.com/news/articles/2021-08-24/u-s-food-suppliers-are-having-trouble-keeping-shelves-stocked
U.S. Food Suppliers Are Having Trouble Keeping Shelves
Aug. 24, 2021 — U.S. Food Suppliers Are Having Trouble Keeping Shelves Stocked · Lack of workers leads to late deliveries across supply chain · Sysco says volume …

—–

— Control over our Travel/Movements. Airfare Prices 20% higher now, wait till the Karbon taxes and ‘climate action’ gets ramped up. Think 50-80% higher.
Only those with Carbon Credits remaining will be allowed flying. What did you think the global QR code/digital ID is for? Your health??

“Globe says Air Canada seen increasing prices
The Globe and Mail reports in its Monday edition that Canadians returning to air travel are facing more than vaccine checks and longer waits to board — they are paying more for their seats. The Globe’s Eric Atkins writes that the average price for a domestic round-trip plane ticket in July, 2021, rose by 21 per cent compared with the same month in pre-COVID 2019. “

#9 Sail Away on 10.18.21 at 12:04 pm

#2 Ponzius Pilatus on 10.18.21 at 11:01 am

Start selling your Tesla shares.

——-

??

That may not be the world’s best advice, but to each their own.

TSLA +42% from my last purchase in March 2021.

+4,960% from original purchase in 2013.

#10 IHCTD9 on 10.18.21 at 12:29 pm

#55 Nonno Nicola on 10.18.21 at 10:17 am
#54 IHCTD9

Thoreau would be proud of you! Congrats!
___

Ha! – thanks. The bunker complex sports a nice pond already, just need to add the cabin :).

#11 Faron on 10.18.21 at 12:31 pm

#10 Faron on 10.18.21 at 12:29 pm
#2 Ponzius Pilatus on 10.18.21 at 11:01 am
#54 Ihtcd9

Start selling your Tesla shares

Nevermind, they are already awake. LOL

#12 Overheardyou on 10.18.21 at 12:45 pm

Shane is the complete opposite of my 31 year old friend. 1 rental condo 300K mortgage, 1 detached 700K mortgage, zero savings. Single and 90K income. But they do have a dog

#13 SunShowers on 10.18.21 at 12:46 pm

“Maybe if they came to a place like this they could be as successful as you. – Garth”

I just find it curious that you and so many other people here seem to be completely ok with the median Canadian not being paid nearly enough to be able to retire, instead of seeing it as a dismal failure of both the private and public sectors.

The fault is not just with what people are paid, but what they spend it on. – Garth

#14 IHCTD9 on 10.18.21 at 12:46 pm

Some people in this life don’t want mobility, freedom, flexibility and choice. They need dirt. A driveway. Yard. Garage. With an eight-drawer rolling tool chest inside.
_____

I can appreciate. I also want no stress finances when retired though too. Of course I’m a lot older than Shane, and the appreciation for having started investing when I didn’t give a rip about it, didn’t come till my 40’s when the investing started looking like something.

With Shane’s HHI and no kids, he could blow our efforts into the weeds if he gets started soon.

Don’t blow it all on the house bro – 10 or 15 years from now, you’ll be glad. Also pay explicit attention to Mr. T’s last 5 points – particularly the first 4. This is advice for the whacky modern day, where Mortgages are free, and saving means losing.

#15 WTF on 10.18.21 at 12:54 pm

Estate Planning for Snowbirds

#15 WTF on 10.17.21 at 5:00 pm

#18 Shawn Allen on 10.17.21 at 5:37 pm “Pretty sure most snowbirds who own prop over 60k don’t file in the US.

*****************************
Pretty sure most them are not dead yet and therefore are not required to”
—————————————————————–U may want to try google prior to absolutist pronouncements?

US tax laws regarding Canadians owning property don’t require you to be ” dead” . There are many reasons to file regardless of whether you are liable for taxation or not. My comment stands, most do not take the preemptive measure of filing. And probably should.

file.http://www.bdo.ca/BDO/media/Tax-Factor-Banners/US-Tax-Issues-for-Canadians.pdf

#16 IHCTD9 on 10.18.21 at 12:56 pm

#2 Ponzius Pilatus on 10.18.21 at 11:01 am
#54 Ihtcd9
Both ATV’s will be going on the block also in the spring of 2022. The 22.5 L/100 km gas eating 2500HD is going on the block as I have just purchased a new (to me) diesel 3/4 ton that can do 9.5 L/100 km, yet still do everything I need it to do.
———————
Smart move.
Saw an AUDI E-Tron GT yesterday.
In Surrey, of all places.
Start selling your Tesla shares.
_____

I’ll leave the investing calls to the Pros. As for the home front, it needs some lifestyle inflation undoing. At least for the next 5 years or so.

I don’t like where Trudeau has pointed Her Majesty’s good ship “Canada”. Someone else will have to swab the deck as long as his hand is on the rudder.

#17 Dr V on 10.18.21 at 1:10 pm

16 IHCTD9

“Someone else will have to swab the deck as long as his hand is on the rudder.”

A rather eloquent metaphor.

#18 Kelowna rocks it ! on 10.18.21 at 1:15 pm

Kelowna’s median house price jumped past $1 million, market report says

https://globalnews.ca/news/8273750/kelowna-median-house-price-real-estate-market/

#19 Dragonfly 58 on 10.18.21 at 1:27 pm

That sounds like a remarkable family income for a HD mechanic and an office worker.
I went from being a mechanic; with a significant qualification upgrade , UBC Degree plus BCIT Technology qualification plus more Transport Canada endourcements than you can shake a stick at .{ Part of my job was supervising HD Marine mechanics.} Combined my income with wifes income as a RN, later supervisory RN { in the old days , a head Nurse }, and despite lots of OT , higher positions in our respective fields etc , we never broke $200,000.00 / year. I have been retired 3 years now, wife in another 2 months. What in the world did we do wrong ?

#20 Dolce Vita on 10.18.21 at 1:34 pm

Besides going to Hell in early November (https://www.scuderiequirinale.it/mostra/inferno) ‘been dying to go to London but it seems the UK having more Covid case problems.

Not a pretty picture despite high vax rates but at least hospital and deaths being kept low:

https://coronavirus.data.gov.uk/

Targeted London burbs me wants to know where to go to avoid Covid there and mercifully Gov UK has just the ticket, nearly block by block:

https://coronavirus.data.gov.uk/details/interactive-map/cases

Basically HM The Queen & surrounding palace parks have very low case rates (she is the only one living there + staff), stay away from The Mall, Strand & SOHO (what’s the point then of visiting London?) and the poor Cdn Embassy at Trafalgar.

Westminster, you’re on your own.

Pass for now.

How I miss hideous food & espresso, expensive beer but oh the Inglesi…worth it at twice the price.

———————-

PS:

Tweeted about the only 2 Cdn options during Winter being:

1. Freeze you heinie off.
2. Waterboarded on the West Coast.

I was kidding about #2 until I watched CTV National News yesterday:

https://i.imgur.com/6y98U85.png

Well, wasn’t that prescient.

Baci d’Italia where my Winter gear is a Cdn Summer Wind Breaker (for those “colpi d’aria” which every Italian fears and the rest of the World doesn’t even know about).

#21 Dolce Vita on 10.18.21 at 1:42 pm

That was very good have your cake and eat it too advice you gave In Need of Dirt Guy + PW.

Basic scrawl on the back of napkin Math that makes sense without advanced Calculus.

Nicely written indeed.

#22 Sunshowers on 10.18.21 at 1:45 pm

“The fault is not just with what people are paid, but what they spend it on. – Garth”

If real median wages hadn’t been stagnant for the last 40-50 years, I might care more about how people spent their money.

I happen to think that a literal lifetime of stolen wages and upward wealth transfer is of greater consequence than going out to eat too often or buying into a bloated housing market.

#23 Tristan on 10.18.21 at 1:51 pm

Garth, I’m looking to start building a more balanced portfolio like you recommend and was wondering if you (or anyone else reading this) can point me towards one of your blog posts which breaks down the correct portfolio allocations? I have been searching through your posts but cannot find one. Thanks in advance.

#24 Desensitized on 10.18.21 at 1:54 pm

The New Normal.

https://www.theguardian.com/world/2021/oct/15/why-britons-are-tolerating-sky-high-covid-rates-and-why-this-may-not-last

“I think there’s been a desensitisation to the mortality.”

#25 here's why on 10.18.21 at 2:00 pm

#13 SunShowers

Garth doesn’t bother with poor people.

Anyone who seeks my assistance gets it. Except for you. Lifetime ban for being a dick. – Garth

#26 Bob on 10.18.21 at 2:09 pm

Well, Shane, I recommend against putting a lawn over your family’s head. That rarely ends well.

#27 Ponzius Pilatus on 10.18.21 at 2:26 pm

#5 TurnerNation on 10.18.21 at 11:24 am
Bahahah – welcome to the continued rollout of Kanadian Kommunism. They pretend to pay us, we pretend to work.

“Ontario Liberals propose four-day work-week pilot project if …https://toronto.ctvnews.ca › ontario-liberals-propose-four-…
The Ontario Liberals say they will launch a pilot project to “analyze the potential for a four-day work-week” if elected in June ”
—————————
4 day week.
Often, less is more.
Most workers put in just 4 days worth of work anyways.
I’m sure the pilot will show that a shorter work week actually increases overall productivity by decreasing “face time”.

#28 Immigrant man on 10.18.21 at 2:29 pm

#19 Dragonfly 58 on 10.18.21 at 1:27 pm
That sounds like a remarkable family income for a HD mechanic and an office worker.
—–
I’ve no idea where this fella is, but an HD mechanic working for a mine can make up to 200k, just by himself. I known one personally. He worked a lot a lot of overtime though. More typically its 100-120k range, plus OT, plus production bonus. Lots of mines are very remote, so they work rotation, like 2 weeks on 2 off or somethin similar. This way you can still live in a urban RE market, but be fixing scoop trams and haul trucks for a job.

#29 Shawn Allen on 10.18.21 at 2:33 pm

Dearly Unvaccinated by choice

Of the people under 40 who landed in ICU in Alberta, 95% of them are unvaccinated according to Alberta Health. 95%!!

Unless they had a medical reason I would say 100% of the 95% were idiots. Not a lot of COVID people are coming out of ICU in good shape. A lot come out dead.

Also have the anit-vaxer, my body, my choice people considered that the VIRUS does not ask permission to enter our bodies?

It’s okay to admit a mistake and take the vaccine. I would congratulate you for it. We have all been idiots at times. Think of those who would miss you. Do it for them.

#30 Ponzius Pilatus on 10.18.21 at 2:35 pm

#20 Dolce
Baci d’Italia where my Winter gear is a Cdn Summer Wind Breaker (for those “colpi d’aria” which every Italian fears and the rest of the World doesn’t even know about).
—————-
I bet you a million Lire, that the rest of the world does not give a damn.
Now finish eating your pasta, that the Italians stole from China.

#31 SoggyShorts on 10.18.21 at 2:44 pm

#4 SunShowers on 10.18.21 at 11:23 am

Weird how we don’t seem to hear much from regular people who make the median Canadian household income ($63k after tax) and have no pensions to speak of.

I just find it curious that you and so many other people here seem to be completely ok with the median Canadian not being paid nearly enough to be able to retire
******************
It is enough though. As I’ve documented here multiple times, we have lived awesome lives on less.
20K rent
20K food & stuff
20K vacations and toys.

You have to admit that the 20K on vacations/toys is extravagant and a couple could cut down and stuff TFSA’s instead.

More importantly, that median wage of 63K you point to is just above minimum wage for a couple.
Maybe entry-level positions & wages shouldn’t be held for 40 years.
You complain of stagnant wages but there are still many paths to success.
Did boomers have it better than us? Irrelevant.
Play the hand you’re dealt, you can still win the game.

#32 Nonplused on 10.18.21 at 2:55 pm

#19 Dragonfly 58 on 10.18.21 at 1:27 pm
That sounds like a remarkable family income for a HD mechanic and an office worker.
I went from being a mechanic; with a significant qualification upgrade , UBC Degree plus BCIT Technology qualification plus more Transport Canada endourcements than you can shake a stick at .{ Part of my job was supervising HD Marine mechanics.} Combined my income with wifes income as a RN, later supervisory RN { in the old days , a head Nurse }, and despite lots of OT , higher positions in our respective fields etc , we never broke $200,000.00 / year. I have been retired 3 years now, wife in another 2 months. What in the world did we do wrong ?

————————————–

Probably what you did wrong was compare your income in 2000 or 1990 to an income in 2021 without adjusting for inflation or taxes. $200,000 a year ain’t what it used to be.

Also I’m usually pretty skeptical of people’s self reported income unless I see the receipts. If we know anything about it at all, it is that people lie. Especially when filling out subprime mortgage application forms.

#33 zxcvbnm on 10.18.21 at 2:59 pm

#20 Dolce
Baci d’Italia where my Winter gear is a Cdn Summer Wind Breaker (for those “colpi d’aria” which every Italian fears and the rest of the World doesn’t even know about).
—————-
I bet you a million Lire, that the rest of the world does not give a damn.
Now finish eating your pasta, that the Italians stole from China.

_______

I read through the comments. Almost everytime I don’t notice I’m reading a Dolce Vita blithering nothing-waste-of-time until about halfways through. Words cannot express how annoying DV’s posts are. We get it, dude. You’re in Italy. Cool! Why you gotta remind us where you live twice every blog post?? Stop it, please.

#34 Dragonfly 58 on 10.18.21 at 3:04 pm

Yes Immigrant Man, the very extreme situation of a remote camp job does pay well. But far more HD Mechanics work for pretty ordinary, non remote pay scale employers. I did it myself for a time in the later 1970’s. I worked for a Co. with lots of heavy equipment in town, mainly excavators and dozers. They also had some fairly big out of town contracts. Running maintenence , cylinders, pumps etc. were done on site. But anything more involved got lowbedded back to the main shop in Vancouver where I worked. Scrapers and dozers for the most part on the out of town stuff. Did my time on the larger iron and moved on to even bigger things. { Ships }.You haven’t lived until you are on a job removing a 50 ton flywheel. No wrenches to speak of on the fasteners, its all done by stretching the studs with hydraulic jacks. Paid for my return to UBC, but sure didn’t make me wealthy.

#35 Shawn allen on 10.18.21 at 3:08 pm

Soggy shorts is right. Play the hand you are dealt. Whine less and get on with it. (To whom it may concern.)

#36 Sail Away on 10.18.21 at 3:08 pm

#31 SoggyShorts on 10.18.21 at 2:44 pm
#4 SunShowers on 10.18.21 at 11:23 am

Weird how we don’t seem to hear much from regular people who make the median Canadian household income ($63k after tax) and have no pensions to speak of.

I just find it curious that you and so many other people here seem to be completely ok with the median Canadian not being paid nearly enough to be able to retire

——–

It is enough though. As I’ve documented here multiple times, we have lived awesome lives on less.
20K rent
20K food & stuff
20K vacations and toys.

You have to admit that the 20K on vacations/toys is extravagant and a couple could cut down and stuff TFSA’s instead.

More importantly, that median wage of 63K you point to is just above minimum wage for a couple.
Maybe entry-level positions & wages shouldn’t be held for 40 years.
You complain of stagnant wages but there are still many paths to success.
Did boomers have it better than us? Irrelevant.
Play the hand you’re dealt, you can still win the game.

——-

Well said. So many people bemoan their fate when life is better here with more opportunity than pretty much any other time or place in human history.

#37 Immigrant man on 10.18.21 at 3:09 pm

#29 Shawn Allen on 10.18.21 at 2:33 pm
Also have the anit-vaxer, my body, my choice people considered that the VIRUS does not ask permission to enter our bodies?
———–
So true. Also on the list of concerns is the vax long term effects. Valid concern! But it has to be weighed against the long term effects of covid. For example, certain mutation of certain viruses can cause cancer down the road. Like the human papillomavirus.

#38 SunShowers on 10.18.21 at 3:14 pm

#25 here’s why on 10.18.21 at 2:00 pm
“Garth doesn’t bother with poor people.”

I don’t think that’s particularly fair.
Despite my persistent rambling on his blog, he doesn’t delete/ban me, and he promptly helped me the one time I asked him a legitimate financial question. Most jerks who don’t care about poor people are not in the habit of giving their time and expertise away for free.

He got punted by that goon Harper for trying to give his constituents a smidgen of transparency surrounding the political proceedings that ostensibly represent their best interests. Many of those constituents I can safely assume are not particularly wealthy, and the ones that are would have voted for him anyway even if he hadn’t done that.

That kind of character is unique among politicians. He’s pretty much the only person (formerly) in Canadian politics who I could say actually has the best interest of Canadians at heart, and our disagreements stem from means instead of ends.

In short, he’s the only trustworthy (former) politician to the right of Bernie Sanders that I know of.

#39 Wrk.dover on 10.18.21 at 3:18 pm

When you calculate what the total net of your entire career will be, how much it will cost to live during that time period, and then see how much will have accumulated at the end which sticks to you, it is then time to make some adjustments to that second item, if the first item is non-negotiable.

Try the math for one year ahead, as a primer, then a decade.

Now, not someday. Time is short, total earnings are limited by that.

#40 cramar on 10.18.21 at 3:22 pm

Heard a local (Windsor) Real Estate show on talk radio this weekend. Realtor was dwelling on the fact that Canada has by far the highest RE price increase in the G7. By far!

Canada’s Real Estate Bubble Grew Faster Than Any G7 Country In The Past 30 Years

https://betterdwelling.com/canadas-real-estate-bubble-grew-faster-than-any-g7-country-in-the-past-30-years/#_

Then he concluded that some prospective buyers say to him that they will wait until there is a correction in the market so that houses come down to an affordable level. He said that this will “Never, never, never, never, never happen!” He said even a realistic 10% correction is next to nothing compared to the massive gains, so best time to buy is always now!

I have never seen any bubble in human history that has not eventually burst.

#41 SunShowers on 10.18.21 at 3:28 pm

#31 SoggyShorts on 10.18.21 at 2:44 pm
“More importantly, that median wage of 63K you point to is just above minimum wage for a couple.”

The 63k figure is after tax.
$15 per hour is minimum wage (in some provinces) before tax, not after.

And 20k per year on rent is pretty light for a 2BR, especially if utilities are not included.

#42 James on 10.18.21 at 3:29 pm

Watching a worm squirm. Trudeau does it best!

https://thepostmillennial.com/watch-kamloops-chief-criticizes-trudeau-to-his-face-over-surfing-vacation/

#43 Nonplused on 10.18.21 at 3:44 pm

#4 SunShowers on 10.18.21 at 11:23 am
“He’s a heavy equipment mechanic. She works in an office. Combined income over $200,000, two union pensions and a burning desire to sink roots.”

Weird how we don’t seem to hear much from regular people who make the median Canadian household income ($63k after tax) and have no pensions to speak of.

————————————–

Throwing numbers out there is often a waste of time without context. There are a lot of moving parts besides the median wage. The CPI adjustments attempt to compensate for some of them but do a particularly bad job. But let’s look at a few factors:

A family earning $63,000 per year, assuming it is split between 2 wage earners, pays no taxes and receives all the kiddie bonuses and what have you. A family earning $200,000 per year will still have considerably more disposable income but they don’t take home $200,000 per year, they pay substantial taxes. This is one of the effects of a graduated tax system. The “invisible hand” won’t have it, so as taxes are increasingly directed towards the highest income earners so are the wages. They have to pay the tax somehow and the invisible hand insists that everyone gets paid appropriately in after tax dollars for what they do. A flat tax would quickly see doctors getting paid a lot less and burger flippers a lot more, but after tax making about the same.

Do wages really need to rise through a period where so many expenses have fallen through the floor due to offshoring to China? Examples abound but a lot of the stuff we buy from clothing to toys and electronic gadgets to car parts are incredibly cheap compared to what they would cost 20 years ago inflation adjusted. Just as one example, you can get a brand new street legal dual sport Brozz 250 motorcycle now for US$2,000. Reviewers say it is actually not bad and compares with an XT 250 for US$5,000. Is that inflation? Both are made over seas so do we really care whether it comes from China or Japan? Or did motorcycles just become accessible to a whole lot more people?

Electronics is even worse. Do you know anyone that does not have a smart phone? Even the homeless seem to have them. At my house we literally have boxes full of old electronics that still work but have been replaced by something better because it was so cheap.

A walk through Costco shows the same thing. Sure, food is getting pretty darn expensive, but a name brand golf shirt for $17? Ya, that’s half what they cost at Mark’s. A 9000 watt Firman generator for $900 Canadian? Ya that is a lot less than what they used to cost. Can’t get parts? It is literally too cheap to repair given shop rates so you would buy a new one if it ever broke.

And of course there is finance. Over the years mortgage rates have fallen from +10% to -2%. This significantly stretches what $63,000/y will buy. Car loans same thing.

As my dad used to say years ago, “Canada is a place where the poor drive their cars to the protest rallies.”

I think a great many people would enjoy life a lot better if they stopped looking at the numbers and instead looked at their actual physical condition. It doesn’t really matter how much money you have you can only play one video counsel at a time. And if you can forget for a moment about your credit card balance, it really doesn’t matter how you paid for it.

Or as my friend’s dad use to say: “The only difference between the rich and us is that the rich drive a more expensive car, smoke more expensive cigars, and date younger women”.

And if there were some magical way to pay everyone more without causing rampant inflation that just brought everyone back to exactly where they are now only with bigger numbers, I don’t think you are going to see any change to the savings rate. Ants are ants, and grasshoppers are grasshoppers. If lottery winners have taught us anything, it is that if you give a million dollars to someone who has no money, within a few years they will be right back to having no money. If you give a million dollars to someone who already has money, within a few years they will have two million. It seems to be a personality trait, possibly influenced by upbringing. But one thing is for sure, it cannot be changed by the addition of more unearned money. All throwing wood on the fire does is make the fire bigger.

#44 BlogDog123 on 10.18.21 at 3:48 pm

re: #25 here’s why on 10.18.21 at 2:00 pm
#13 SunShowers

Garth doesn’t bother with poor people.

Anyone who seeks my assistance gets it. Except for you. Lifetime ban for being a dick. – Garth

===

there’s a tonne of things poor people can do:
1. make sure you sign up for child credits etc with Revenue Canada. Some people don’t. Fill in that RESP if you can and get 20% from gov’t. for your kids’ college.
2. If you’re too poor for RRSPs to make much of a difference, TFSAs are the way to go (your retirement fund) until your income improves.
3. Use cheaper internet providers and VoIP account for home phone. Why pay Bell $50 for a crappy home phone when voip providers are 1/5th of that or less.
4. Rabbit ears for HDTV signals. Screw cable TV.
5. Live within your means, and that might mean “shared accomodation” if your income is low. I did this after leaving college until my income was to my liking…
6. Live close to work and forget owning a car. That’s not always possible, but can save lots o’ money if you can swing it.

#45 IHCTD9 on 10.18.21 at 3:51 pm

#17 Dr V on 10.18.21 at 1:10 pm
16 IHCTD9

“Someone else will have to swab the deck as long as his hand is on the rudder.”

A rather eloquent metaphor.
____

I’ve been thinking about fishing boats today :)

#46 Philco on 10.18.21 at 3:51 pm

IHCTD9
In the new Canada, living like a baller will cost you big-time, and half the country will hate your guts. Like Mr. T says, “live quietly among the masses”.
———————————-
LOL your not wrong.
The green agenda’s going to ensure most will not be able to afford to travel and play.

Sorry I can’t keep up to this blog…..everyone’s either got lots of free time or faster than me…likely both.

Just saw this WOW.
The ‘Great Resignation’ goes global.
https://www.greenwichtime.com/news/article/The-Great-Resignation-goes-global-16541578.php

#47 Zak Ramdani on 10.18.21 at 3:53 pm

Don’t listen to Garth’s boomer logic!

Take your $250K and put it all on $TSLA; then in 2023, take your proceeds and put them all on Starlink – by 2030, you won’t need to worry about ratios, etc.

#48 db on 10.18.21 at 3:53 pm

in response to post #23 by Tristan

link to Garth’s post regarding asset mix for balanced portfolio

https://www.greaterfool.ca/2020/08/03/simple/
scroll to second to last paragraph

You can also google the following ETF’s as a starting point:
VBAL, VGRO, XBAL, XGRO (all in one)
XRE, CPD, XIC , XUS, XEF, XEC, XBB (sector ETF’s)
and compare their holdings with Garth’s recommended asset mix…
or find a fee based advisor who already does all of the above for a living….
the ‘free’ or commission advisors tend to be very expensive in the long run
Good luck!

#49 Nonno Nicola on 10.18.21 at 4:00 pm

#30 Ponzius Pilatus

For the uniformed the 1 million lire bet would amount to $742…

#50 Yukon Elvis on 10.18.21 at 4:01 pm

#14 IHCTD9 on 10.18.21 at 12:46 pm

Mortgages are free, and saving means losing.
++++++++++++++++++

Nailed it.

#51 Brett in Calgary on 10.18.21 at 4:13 pm

Off topic for today: I wonder how our over-leveraged governments plan to deal with the coming energy crisis?

#52 Philco on 10.18.21 at 4:17 pm

The fault is not just with what people are paid, but what they spend it on. – Garth
———————————
THATs for sure….One of the biggest factors I see, in peeps financial failures is WAISTE. So much crap they don’t need or can’t afford. Its the north American way.
You can’t turn back the clock when your living on the margin when older/retiring ect. Should have put your dough where it sticks. Trying to teach my kid that.

#53 BlogDog123 on 10.18.21 at 4:20 pm

re: #47 Zak Ramdani on 10.18.21 at 3:53 pm
Don’t listen to Garth’s boomer logic!

Take your $250K and put it all on $TSLA; then in 2023, take your proceeds and put them all on Starlink – by 2030, you won’t need to worry about ratios, etc.

===
I know it’s sarcastic (chasing the insanely overpriced stocks) but I overheard some millenials saying they are “investing” in bitcoin with their “not afraid to lose it” money but surely there are better ways to invest that spare cash than the “hot trend”… Some of those robinhood /reddit kids are going to get wiped out…

#54 Sail Away on 10.18.21 at 4:22 pm

#45 IHCTD9 on 10.18.21 at 3:51 pm
#17 Dr V on 10.18.21 at 1:10 pm
16 IHCTD9

“Someone else will have to swab the deck as long as his hand is on the rudder.”

A rather eloquent metaphor.

——

I’ve been thinking about fishing boats today :)

——

No, it’s a terrible metaphor.

To have one’s hand on the rudder would mean being underwater below the boat. A similar analogy would be to have one’s hand on the steering linkage of a car.

A tiller or wheel is used to transmit steering impulse to the rudder.

#55 Quintilian on 10.18.21 at 4:22 pm

#18 Kelowna rocks it !

“Kelowna’s median house price jumped past $1 million, market report says”

That shouldn’t be a surprise.
Kelowna is a world class city running out of land, and all the world’s billionaires want to move there… or was that Vancouver, or Cloverdale or….

#56 Dragonfly 58 on 10.18.21 at 4:29 pm

Nonplussed, I am talking about 3 years ago. The last time both wife and I were working. Combined income was at that time slightly less than $200,000.00.

#57 Linda on 10.18.21 at 4:29 pm

The issue with putting $ into an RRSP in Shane’s case is that much envied, gold plated public pension. That pesky little ‘pension adjustment’ tends to diminish the $ one can put into an RRSP by a considerable amount. If Shane’s workplace plan has the same percentage of deduction my plan has, that is at least 10-12% of his salary taken every pay to cover the employee contribution to the plan. All of which is deducted off the amount of allowed RRSP contributions. In my own case, most years my allowed RRSP contribution was under $2K. Let’s just say that has a considerable impact on growth.

#58 I’m stupid on 10.18.21 at 4:29 pm

#22 sunshowers

I don’t want to pile on but have you ever thought that the reason things are they way they are because the savings rate collapsed in the last 30-40 years? Think about this for a second, if a worker has no savings what leverage does he have to demand a better wage? At the same time people are buying things they shouldn’t be and all those savings are being sent to the top wage earners.

I remember when every driveway had a Honda in it now every driveway has a Benz. Everyone wants to blame someone for their misfortunes when in fact most should be looking in the mirror.

#59 fishman on 10.18.21 at 4:36 pm

Hey Sun showers! Its not so much that your a dick that Garth banned you. Its because you suffer from defeatism. Of course the public & private sectors have failed the working man. What does that leave us with? Nihilism. Lots of medicine for that on the street. Cheap like borsch. Deadly like phentanyl. Average of 4-5 men/day between 25 & 65 going down for the count out here. But You’ve taken the first step. Hanging close to successful people. Now do what they do. In tiny baby steps. If things seem overwhelming, remember: Live in hope. Die in despair.

#60 SoggyShorts on 10.18.21 at 4:39 pm

#41 SunShowers on 10.18.21 at 3:28 pm
#31 SoggyShorts on 10.18.21 at 2:44 pm
“More importantly, that median wage of 63K you point to is just above minimum wage for a couple.”

The 63k figure is after tax.
$15 per hour is minimum wage (in some provinces) before tax, not after.

And 20k per year on rent is pretty light for a 2BR, especially if utilities are not included.
*************
63K after tax for a couple is $19.50 per hour with zero over time. The Mcdonald’s down the street is paying 17.50 to start.

2BR/2BA utilities included for under 1700 is still very doable if you don’t live in the most expensive area codes in Canada. Our places were very nice.

Why would you think that a couple who earns minimum wage should have a two bedroom appt in a prime location in the most expensive cities anyways?

Entry level jobs = Entry level apartments
Gain skills, experience, and education, then get a new position, then (optionally) get a new place.

The formula hasn’t changed.

#61 Dogman01 on 10.18.21 at 4:41 pm

#22 Sunshowers on 10.18.21 at 1:45 pm

You are 100% correct.

But this is a blog focused on Financial success for those whom can still achieve it.
Yes that is not the majority of Canadians.
Canadians are financially doomed, standard of living has been syphoned away for 30+ years. But they won’t do anything about it…..Lobsters in a pot being slowly boiled, jealously pulling the ones back down whom are trying desperately to climb out.

Create your own lifeboat or nail a few planks together for a raft!

“Millennials would be fools to expect their lives to unfold as carbon copies of their parents’. No profligate hippiedom, no finding-myself-in-Europe, no sha-na-nah for them. This is Darwin, baby. And you’d best know that now.” – Garth Turner

“Concentrate on using you life to achieve some good for yourself, and others. Railing against the gods wastes your most precious gift, while changing nothing.” — Garth Turner

#62 -=withwings=- on 10.18.21 at 4:41 pm

You cant put anything into an RRSP if you have a pension. The pension replaces the RRSP. My RRSP room is less than 1k/yr due to my pension contributions….and the company goes under and you lose the pension….

#63 Dogman01 on 10.18.21 at 4:57 pm

#5 TurnerNation on 10.18.21 at 11:24 am

the New System: global control by the UN-backed bankers. Under the guise of “Climate” you will own nothing and be happy!

“The Globe and Mail reports in its Saturday edition that Canada’s six largest banks are joining a global alliance, led by former central bank governor Mark Carney, that commits them to net-zero emissions targets tied to their lending. The Globe’s James Bradshaw writes that the Net-Zero Banking Alliance (NZBA) is an industry group convened by the United Nations to speed up efforts to combat climate change. Mr. Carney is a UN special envoy on climate action and finance. … As signatories, banks commit to reaching net zero in their lending and investment portfolios by 2050, but also to setting intermediate targets by 2030 or sooner.
© 2021 Canjex Publishing Ltd. All rights reserved.

———————————–

Listened to an O&G Analyst whom met with Canadian O&G CEO’s re ESG and Institutional Investors.
His advice to them was to use the incredible amount of cash they now have to 1. Go Private, or 2. Pump up Dividends to share holders.

The less they invest in new production the higher the prices for their product they will realize. As demand is going Nowhere but up-up-up.

This means Canadians will struggle to afford to drive or heat their houses, but these O&G companies will make out like Bandits.

The population may rebel against carbon tax and Green agenda and may conclude that Green agenda is far far too premature and not realistic. Unicorns and Rainbows. Generating a “new skepticism over renewables in the face of the energy crisis.”

https://www.zerohedge.com/markets/well-done-greta-energy-crisis-send-carbon-emissions-all-time-highs

#64 Loonie Doctor on 10.18.21 at 5:14 pm

#13 SunShowers on 10.18.21 at 12:46 pm
“Maybe if they came to a place like this they could be as successful as you. – Garth”

I just find it curious that you and so many other people here seem to be completely ok with the median Canadian not being paid nearly enough to be able to retire, instead of seeing it as a dismal failure of both the private and public sectors.

The fault is not just with what people are paid, but what they spend it on. – Garth

—————————————————————–
My parents made the median. They also retired early and still live on about half their savings. They are frugal and happy. My in-laws made about half the median, but same story. Yes, we are all dealt different cards. However, we also make choices. The biggest choice people can make is to be happy with what they have or to work to do something about it. That attitude separates the victims from the victors in life.
-LD

#65 Tarot Card on 10.18.21 at 5:16 pm

Thanks for the blog Garth
And thank you for reading my posts and allowing me to post.
Great article and great advice!

Interesting comments today.

I would like to change the topic and appreciate your insights today
I have been thinking allot this past week on supply chain issues, in regards to a previous post. and whether or not you believe its 6 months or 24 months. Same for inflation whether it’s transitionary for 6 months or longer.
My question we were all expecting the reopening trade which fizzled because of supply chain issues. Once this all gets sorted out and with the billions in savings, could we be witness to a real reopening trade after supply issues are figured out? It stands to reason we might be missing an opportunity, your thoughts!

#66 Nonplused on 10.18.21 at 5:28 pm

#56 Dragonfly 58 on 10.18.21 at 4:29 pm
Nonplussed, I am talking about 3 years ago. The last time both wife and I were working. Combined income was at that time slightly less than $200,000.00.

————————————–

You called $200,000 a year “remarkable” and asked what you did wrong, yet now you say you only made slightly less?

People get paid different amounts based on a lot of things, but it sounds like you did ok. IDK maybe Shane works more overtime, works in a camp, is unionized, or knows how to use one of those fancy computerized diagnostics machines. But either way if you were making “slightly less” than $200,000 a year let’s call it even after taxes.

#67 Ponzius Pilatus on 10.18.21 at 5:30 pm

#49 Nonno Nicola on 10.18.21 at 4:00 pm
#30 Ponzius Pilatus

For the uniformed the 1 million lire bet would amount to $742…
——————–
Haha
That’s why I loved vacationing in Bella Italia.
Besides that it is a beautiful country to visit.
Felt like a Billionaire.
100 k for a 2 Star Hotel room.
No problema.
Here’s my 50 Beaver Bucks.
Keep the change.
That’s why Donald G likes it in Mexico.
Playing the big shot.

#68 Nonplused on 10.18.21 at 5:42 pm

#51 Brett in Calgary on 10.18.21 at 4:13 pm
Off topic for today: I wonder how our over-leveraged governments plan to deal with the coming energy crisis?

———————————–

Hmm. That question is more complicated than it looks.

The short answer: They don’t. In fact any plans they have will only make matters worse.

Also, the “energy crisis” is not yet universal. There will be no crisis in Alberta this year, although prices will be higher. But Alberta will see no physical shortages, we will just have to pay more to keep the energy we need in Alberta.

I don’t think there will be much of an energy crisis in Russia either.

Actual shortages will occur mostly where there are a lot of pinwheels. Germany for example. California. Alberta has a fair number of pinwheels but we didn’t shut down the coal plants yet so we won’t go dark this winter.

Importing nations like Japan and China will also have problems. In Japan’s case, maybe they weren’t ready to shut down most of their nuclear. In China’s, maybe buyer’s strikes don’t work. Australia will have the last laugh it seems.

#69 yorkville renter on 10.18.21 at 5:54 pm

Garth, would love to know more detail about the “Rule o’ 90″… As an investor I have $$$ spread across TFSAs, RRSPs, Cash Accounts, etc… if that portfolio is worth 100k and I’m 30 does that mean “go ahead and spend $60k on the down payment”?

because that money would come from a number of sources – so does it all come outta cash? what if the cash is well under $60k? raid the TFSA?

#70 Faron on 10.18.21 at 5:59 pm

#54 Sail Away on 10.18.21 at 4:22 pm
#45 IHCTD9 on 10.18.21 at 3:51 pm
#17 Dr V on 10.18.21 at 1:10 pm
16 IHCTD9

A similar analogy would be to have one’s hand on the steering linkage of a car

Don’t be such a gudgeon and use your pintile Sail Away. Terrible analogy.

Linkage in boat = linkage in car.

Rudder = car ‘s front wheels.

They are the moving parts that exert force on the medium of transport to enact a directional change.

And it’s possible, but not effective for steering, to have a hand on the rudder in some boats with transom hung rudders. Typically 27′ (i.e. a Hotfoot) on down to dinghys by way of Tanzers (like mine), cal 20s, sharks and etc.

Wheels on sailboats shorter than 32’ are for show IMO. Saw a 70’er at Swiftsure with tiller steering. She was a beaut.

#71 Golden Advice on 10.18.21 at 6:05 pm

Sometimes live is not fair.

I have seen many younger people benefit from jumping in the housing market blind 15 years ago. No education, no knowledge, no anything – just wanting a house.

One young family is living in my multi-million dollar neighbourhood carrying a small amount that costs $505 per month to carry because they sold another house close by but in a worse neighbourhood that tripled in value over the time they owned it and allowed them to ride the inflation wave and trade sideways, which would be impossible to do working a good paying job and investing along the way.

They both don’t work, have 4 young kids and state that they get enough in government benefits to cover all of their living costs. They have two newer trucks, a newer RV and a ton of toys for the kids. They are at home 24/7, are uneducated, loud as hell and love smoking up.

My situation is working balls out after 7 years of post secondary and professional accreditation.

I have studied both financial markets and real estate markets and made some decent moves and always learn from mistakes made, including being late and inactive until my 30’s.

But when the dust settles, I still have to work 40 hours per week to cover my 2,800 per month housing costs because instead of buying a home I was studying and preoccupied, which you could say really came at a cost considering how much housing increased.

I could have bought a yaletown condo new for 205,000 or an older house for around 320,000 but paid no attention while focusing on getting through school. Yes, interest rates were higher back then, but still a better bang for buck and again I was oblivious to it all at the time. A bit late to the party you could say.

Sometimes life isn’t fair and timing is everything.

But on a positive note, if I would have not made the moves that I did several years back on the back of learning everything that I have (including reading this blog since close to its inception), my living costs would be $4,200 per month for the same stuff I have at present- however, I would not be buying in at such obscene prices now. Not because I think prices will come down – which they won’t in my opinion – but because I simply cannot afford these price levels and it would be irresponsible of myself to try and fake it as it would result in eventual financial failure not to mention living house poor until bankruptcy.

Unless you are being gifted a home, life in the province of BC is not viable for a person who makes an honest living. It ended in 2015 and it is never going back being affordable anywhere within the province.

End of story.

If there is one piece of advice I can pass along that I wish I would have had at a young age is understand your affordability, how much debt you can responsibly manage and never ever carry cash.

Get a home first and invest second. Saving up is a fools game. If you figure out that you cannot afford home ownership, forget home ownership forever and figure out your rent and start investing everything you have.

Understand your cash flows and never carry excess cash. Stay invested, forever.

This post proves how people become frozen and pay dearly for it and you turn from happy person to real bitter and for good reason.

#72 Reality Check on 10.18.21 at 6:10 pm

51 Brett in Calgary on 10.18.21 at 4:13 pm
Off topic for today: I wonder how our over-leveraged governments plan to deal with the coming energy crisis?
——————————-
MaybeTrudeau will do what his father did in response to the 1970s energy “crisis” – Confiscate most of Alberta’s
oil/gas wealth and use it to subsidize Ontario and Quebec. Google Canada National Energy Program.

#73 Faron on 10.18.21 at 6:10 pm

This is $115,000 car:

(Spoiler alert, the door won’t close and stay closed).

https://twitter.com/i/status/1450108516505694215

Tesla. LOL.

#74 Nonno Nicola on 10.18.21 at 6:15 pm

#54 Sail Away

A metaphor as you know is not a literal comparison. Having your hand on the rudder would equate to having your hand at the wheel of a car. Would you think the driver’s hand was dangling out the window and placed on the moving wheel?

#75 Dr V on 10.18.21 at 6:15 pm

54 Sailo – Oops. Yeah. right. We’ll work on that for next time.

I still liked it though.

#76 Dr V on 10.18.21 at 6:20 pm

54 Sailo – then again, if we equate Canada to the ship,
then being underwater could be part of the metaphor.

#77 Josh in Calgary on 10.18.21 at 6:31 pm

I think for people like this that are just starting out in investing they should follow the KISS principle. Keep It Simple Stupid. You can get everything Garth preaches in a single ETF (or mutal fund if you prefer). I’d recommend XGRO or XBAL (the former is more weighted to equities, the latter probably closer to Garth’s 60/40). These are ishare funds, but I’m sure others have comparable ones.

Then if/when they decide they want to buy the house it’s completely liquid and ready to go.

#78 Dr V on 10.18.21 at 6:33 pm

Re: metaphors. They always used this one in school

“The moon was a ghostly galleon tossed upon cloudy
seas.” From the Highwayman by Alfred Noyles.

To change it to a simile insert the work “like” ie “The moon was like a ghostly galleon…”

#79 Secret of my Success on 10.18.21 at 6:38 pm

#59 fishman

But You’ve taken the first step. Hanging close to successful people. Now do what they do.

>>>

Successful? How is that measured?
In titles? In money? In shares?

Are these the things that define a life? Define success?

#80 Dolchay Vita on 10.18.21 at 6:44 pm

So there I was, sitting by the Mediterranean, eating pasta (we eat pasta in Italy) and it’s warmer here. And I thought to myself: “I used to live in Canada, but now I live in Italy for part of the year.” See, here in Italy, there’s things you wouldn’t believe. There’s Italian food, and a whole Italian way of life. Oh! You wouldn’t believe it. What does this have to do with Garth’s Canada housing blog? I dunno. I just eat the pasta and post about it. See ya later!

#81 the Jaguar on 10.18.21 at 6:51 pm

Holy Moly! The voters in my hood are wrapped around the block like a string of Spolumbo’s sausages waiting for their turn to vote! Never have I seen such a line up for a Municipal Election. Wonder what’s got ’em all fired up? Is it the Mayoralty Race – Gondek versus Farkas? That one is supposed to be neck and neck. Or is it one of the Referendum Questions?

-“Should section 36(2) of the Constitution Act, 1982 – Parliament and the government of Canada’s commitment to the principle of making equalization payments – be removed from the constitution?”

-“Do you want Alberta to adopt year-round Daylight Saving Time, which is summer hours, eliminating the need to change our clocks twice a year?”

Or maybe it’s just that old chestnut about ‘fluoride in water’ .

Yesterday it was + 20 degrees in Calgary, but the worm has turned and there is a chill in the air. Not enough to keep the peeps on a ‘mission’ off the stoop of their school voting station.

Go figure.

#82 Ardy on 10.18.21 at 6:58 pm

I thought we were doing okay with 2 DB pensions, early CPP and full OAS……for $60,000 net a year total.

I see now how badly our pensions suck and we are poor people. We lost money on several homes and broke even on a couple. We made a tiny bit of money on one sale. It didn’t help that our mortgage interest started at 21% and ended up with our last home at a fabulously low (according to our lawyer) 7.99%.

No TFSA back then. Invested $25,000 in RRSPs and lost most of it in the 2000 collapse. GICs ever since then.

At least I do have 10,000 vintage sports cards to show for our 80 years of hard work combined.

People laughed when I bought them for next to nothing. At least I did something right……until they collapse in price as well.

Yea……it is great being regular folks.

No wonder people are protesting the rich. Elon Musk now has more wealth than Bill Gates and Warren Buffet combined and he still hasn’t made a car that is profitable.

Go figure.

#83 yvr_lurker on 10.18.21 at 6:59 pm

#71 Golden Advice
—————
Your trajectory and early career parallels that of mine. Working for years to acquire high-level skills, that ultimately will lead to a high-paying job that you like. I was fortunate to enter into the housing party in 2003 (when I was 40), when my salary was on a clear upwards trajectory. If I was 5-10 years later it would have not been in the cards. There is a lot of truth to what you have said in greater YVR (and now expanding all over the province):

“Unless you are being gifted a home, life in the province of BC is not viable for a person who makes an honest living. It ended in 2015 and it is never going back being affordable anywhere within the province. “

#84 Philco on 10.18.21 at 7:03 pm

#63 Dogman01 on 10.18.21 at 4:57 pm
——————————-
I agree Dog, the govs causing an energy crisis, at least in your wallet. They care about it as much as housing affordability….They have no clue.

#85 Shawn Allen on 10.18.21 at 7:09 pm

Nonplused on deflaion

#43 Nonplused on 10.18.21 at 3:44 pm

Great post about how lots of things are WAY cheaper now. And about how people are living ever better.

We see so may people claiming that inflation is way higher than the official number. They claim Statistics Canada is manipulated by the government. They don’t look into all the categories and the basket weights that Stats Can uses.

There is no perfect measure of inflation and certainly none that will reflect the spending basket of every individual. But Stats Can is independent and does its best to measure inflation.

And the Bank of Canada is also independent and does what it thinks is best and interprets inflation as best it can.

Neither agency is perfect but they are certainly not corrupt or doing the bidding of the Liberal Party.

#86 Sail Away on 10.18.21 at 7:17 pm

#74 Nonno Nicola on 10.18.21 at 6:15 pm
#54 Sail Away

A metaphor as you know is not a literal comparison. Having your hand on the rudder would equate to having your hand at the wheel of a car. Would you think the driver’s hand was dangling out the window and placed on the moving wheel?

——-

Your idea is simple, like my brother-in-law Phil. But unlike Phil, this idea is bad.

#87 Phylis on 10.18.21 at 7:19 pm

#73 Faron on 10.18.21 at 6:10 pm
This is $115,000 car:

(Spoiler alert, the door won’t close and stay closed).

https://twitter.com/i/status/1450108516505694215

Tesla. LOL.
Xxxxxxx
Looks like the door window rubber is folded over at the top and the window can’t reach the top. I’m here to help!

#88 Linda on 10.18.21 at 7:28 pm

#72 ‘Reality’ – what oil & gas wealth? Alberta has a deficit, same as the other ‘have not’ provinces. The much touted Heritage fund was drained to cover off deficits. IF it even still exists – I vaguely recall a headline saying the PC’s under Redford/Prentice had voted to wind that sucker up – it isn’t any bigger than it was back in the 1980’s. Unlike Norway, Alberta didn’t continue to build that puppy, probably because they thought Ottawa would just grab the cash to appease Quebec/Ontario. Or just an expectation that O&G revenue would never dry up, despite many a boom/bust cycle.

Despite the current price of O&G in the markets, there is hesitation on the part of O&G producers to invest at this time as per BNN headlines today. And despite a lot of talk about diversification, the current Alberta government still supports O&G to the exclusion of anything else. All talk, no cattle.

#89 under the radar on 10.18.21 at 7:31 pm

59- I spent my formative years sopping up as much as I could from some very savvy business people who lived through the unthinkable. They were full of wisdom. They survived the holocaust by their wit, luck and determination.
They came to Canada with nothing so surviving and prospering in business came easy to them. They built huge empires but kept a low profile. I was lucky to have been around them.

#90 When Will They Raise Rates? on 10.18.21 at 7:32 pm

DELETED (Anti-vax)

#91 cuke and tomato picker on 10.18.21 at 7:34 pm

I hope everyone is happy today with our prime minister
who met with the first nations people in Kamploops. In the last month he has been elected prime minister of Canada for the third time and brought the two Michaels
back to Canada. He did not want to be in the limelight on Sept 30th that was the first nations day for them to shine.

#92 R on 10.18.21 at 7:37 pm

#73 Faron:
The new modle S has no door handles. The car used facial recognition to unlock and open the door. Notice the door does close,and then a few seconds later ,it reopens. Tesla wants the user experience to be as intuitive as possible.

#93 Faron on 10.18.21 at 7:44 pm

#92 R on 10.18.21 at 7:37 pm
#73 Faron:

Tesla wants the user experience to be as intuitive as possible

Yes, having the door reopen itself immediately upon closing is intuitively what I would want. If I spent $110k on a car, I would demand and receive non buggy software from any other OEM.

#94 Sail Away on 10.18.21 at 7:57 pm

#92 R on 10.18.21 at 7:37 pm

#73 Faron:
The new modle S has no door handles. The car used facial recognition to unlock and open the door. Notice the door does close,and then a few seconds later ,it reopens. Tesla wants the user experience to be as intuitive as possible.

———

I’ve programmed mine to recognize Faron’s face as an emergency vehicle.

#95 Reality is stark on 10.18.21 at 7:58 pm

But a dump and work 90 hour weeks for 10 years. You’d be shocked at how much you’ll have.
It’s called sacrifice, delayed gratification.
Or you can be the typical Canadian who believes in cultural Marxism and play victim.
Trouble is you are already an oppressor as part of the patriarchy.

#96 Planetgoofy on 10.18.21 at 7:58 pm

#91 cuke and tomato picker on 10.18.21 at 7:34 pm
———————————-
They sent piles of request for him to attend that day and fell on def ears. They were real stoked about him not showing up as was pasted all over the news.
Get back to your garden. Your wasting perfectly good air time.
LOL

#97 Faron on 10.18.21 at 8:00 pm

Look at that yield curve… The short end is steep. When will they raise rates? Har.

#98 Habitt on 10.18.21 at 8:06 pm

#25 here’s why I dunno a few months ago our host had a post as to how two low income people together could still get ahead. I believe Garth also gives his MP pension to others. Personally reached out to the man a few times and he was there. To say he doesn’t care about the poor folks ain’t right. He don’t want no poor ya see. Yeah the blog is tilted to those succeeding but so what? I ain’t wealthy but come here for the reality check and informative posts every day.Thanks again Mr. Turner.

#99 TheDood on 10.18.21 at 8:11 pm

#14 IHCTD9 on 10.18.21 at 12:46 pm
Some people in this life don’t want mobility, freedom, flexibility and choice. They need dirt. A driveway. Yard. Garage. With an eight-drawer rolling tool chest inside.
_____

I can appreciate. I also want no stress finances when retired though too. Of course I’m a lot older than Shane, and the appreciation for having started investing when I didn’t give a rip about it, didn’t come till my 40’s when the investing started looking like something.

With Shane’s HHI and no kids, he could blow our efforts into the weeds if he gets started soon.

Don’t blow it all on the house bro – 10 or 15 years from now, you’ll be glad. Also pay explicit attention to Mr. T’s last 5 points – particularly the first 4. This is advice for the whacky modern day, where Mortgages are free, and saving means losing.
_______________________________

Sage advice that I tend to agree with. Never, ever blow your entire nest egg on a house. If you can, use GT’s formula and don’t leave cash sitting around in a bank account either. Set yourself up with self-directed investment platforms (questrade, TD Webroker, etc.) and learn how to invest. All the advice you need is available on this blog.

#100 Dragonfly 58 on 10.18.21 at 8:13 pm

Nonplussed, my point was that despite both my wife and I having pretty decent education credentials, wife RN + Masters degree , me Trade qualification, UBC degree , BCIT Tech graduate, plus a whole raft of career specific endorsements on my Transport Canada / International licence, and two 35 year careers eventually rising to a supervisory level in both of our cases, we never hit the $200,000.00 / year level. That is exceeded by a Tradesman { something I qualified for and advanced beyond 30 years ago } and an office worker , who are in their early 30’s. Something is wrong with this picture. And yes both wife and I have worked LOTS of overtime. When I retired 3 years ago I had 11 months in my overtime bank and thats only about 1/2 of what I earned over the last 5 years or so of work.

#101 Steven Rowlandson on 10.18.21 at 8:13 pm

The price is too high.

#102 Faron on 10.18.21 at 8:31 pm

#94 Sail Away on 10.18.21 at 7:57 pm
#92 R on 10.18.21 at 7:37Ha pm

I’ve programmed mine to recognize Faron’s face as an emergency vehicle

Ha, kudos.

#103 Dr V on 10.18.21 at 8:35 pm

85 Shawn – I figure beer is the gold standard

https://brookstonbeerbulletin.com/the-price-of-a-beer-1952-2016/

I guess you can argue that there are more choices these days.

Maybe cigarettes? Litre/gallon of gas? Is gas better today?

#104 Lead Paint on 10.18.21 at 8:38 pm

#29 Shawn Allen on 10.18.21 at 2:33 pm
Dearly Unvaccinated by choice

Of the people under 40 who landed in ICU in Alberta, 95% of them are unvaccinated according to Alberta Health. 95%!!

——————————

Enough with vilifying and shaming your fellow citizens, or celebrating their misfortune.

How many under 40 in ICUs without other pre-existing conditions?

I agree they did not make the right decision on vaccination regarding Covid.

Are you perfect in all ways Shawn Allen?

#105 Dr V on 10.18.21 at 8:46 pm

100 Dragonfly 58 – I also have BCIT, Uni degree, 2 professional designations and just over 30 years. That
level of income is decent. It also boils down to choices. Work for government? Trade big income for steady and a pension. Wanna work in isolated camp or civilization. Wanna work 7.5 hr days with 5 weeks vacay or 12 hours 5.5 days with 2 week vacay in your own business?

I made some of my best money in the mid 2000s. Had lots of work, people and energy.

I know people who made more, and many that made less.

#106 Dogman01 on 10.18.21 at 8:55 pm

The planet is changing. So will our journalism

https://www.cbc.ca/news/editorsblog/editor-note-climate-change-cop26-journalism-1.6213067

Wow CBC, just when I thought you couldn’t get anymore focused on Climate Change.

#22 Sunshowers on 10.18.21 at 1:45 pm wonders why Canadians standard of living keeps going down.

Its because they buy what snake oil salesmen sell them.

GATT and Free Trade – Good
Unions – Bad
Trickledown – Good
Service jobs – Good
Manufacturing Job, Old Economy – Bad.

Climate Change will be used by the same shysters to make you poorer and make them much more wealthy.

“The green lobby, which to this day is simply using ESG as a smokescreen to demand trillions in taxpayer-funded government spending, of which a substantial portion quietly goes into the bank accounts of a select handful of the most vocal virtue-signalers, never to be seen again. “

#107 Lead Paint on 10.18.21 at 9:17 pm

#42 James on 10.18.21 at 3:29 pm
Watching a worm squirm. Trudeau does it best!

——————————————

It’s theatre on both sides. Trudeau does not care about native issues, reconciliation or unmarked graves. Or me or you.

The fact that they even let them appear shows they are naive or desperate.

They call for truth and reconciliation, they get performance.

#108 Philco on 10.18.21 at 9:21 pm

#106 Dogman01 on 10.18.21 at 8:55 pm
———————————-
Dogo nothing like a fake emergency to implement new taxes and controls. We have 2 of them and most bought it up. Sorry but DUM DUMs
Sorry loaded statement but its happy hr at my place…
That’s all ya got…HAPPY HOUR.
Cheers!

#109 TrueLies on 10.18.21 at 9:22 pm

DELETED (Anti-vax)

#110 Faron on 10.18.21 at 9:23 pm

#103 Dr V on 10.18.21 at 8:35 pm
85 Shawn – I figure beer is the gold standard

https://brookstonbeerbulletin.com/the-price-of-a-beer-1952-2016/

I guess you can argue that there are more choices these days.

Maybe cigarettes? Litre/gallon of gas? Is gas better today?

One of the better and more universal metrics is the amount of time one had to work per unit of illumination:

https://www.statista.com/chart/10567/the-cost-of-light-through-the-ages/

#111 april on 10.18.21 at 9:24 pm

#55- one house sells for a million and CREA will broadcast the market is up.

#112 Sheesh on 10.18.21 at 9:29 pm

#91 ‘He did not want to be in the limelight on Sept 30th that was the first nations day for them to shine’.

…….

Spending the day in quiet reflection (or even in private meetings at the office) would have been more appropriate than a surf vacation, no? Huge disrespect.

#113 Doug t on 10.18.21 at 9:30 pm

#100 dragonfly

I have a high school diploma – factory jobs till 32 – got lucky started my own business – 58 now no pension and thankfully it’s all good – be happy, be positive, be thankful

#114 Dragonfly 58 on 10.18.21 at 9:31 pm

Dr V, point taken. I did opt for steady work, better pension and probably lower wages than a remote / camp job. I earned my best in early 2000’s when wages vs cost of living were in much better balance. Prices kept going up, esp. taxes , transport , insurance, energy, food, but only a very small increase in the base income ,take home. Overtime was the only thing that let me keep up.

#115 Doug t on 10.18.21 at 9:34 pm

#91 cuke and tomato

LOL oh you surely are smokin the good stuff bro

#116 Vanreal on 10.18.21 at 9:37 pm

I agree with Dragonfly. There is something not adding up with the total family income. Let’s say his wife makes 60,000 as an office worker. And that’s very generous. That would mean he’d be pulling in 140,000 as a heavy duty mechanic. ??? It just doesn’t seem right.

#117 Faron on 10.18.21 at 9:42 pm

#73 Faron on 10.18.21 at 6:10 pm
This is $115,000 car:

(Spoiler alert, the door won’t close and stay closed).

https://twitter.com/i/status/1450108516505694215

Tesla. LOL.

Correction, that’s a Plaid. A $170k car.

#118 Blobby on 10.18.21 at 10:00 pm

Im 45. For the last 10 years, i’ve averaged 40k a year BY CHOICE.

But yet, I still live very well, (In a 3 bed house I rent outside of Vancouver). Im not rich, I have a few hundred grand of investments.

No I dont have rich parents, and no I didnt win lottery before doing this.

I just decided life was for living, and i lived frugally – enjoying life, without wasting money – and any left over got invested.

Of course you’re going to have people earning multiples of $100ks a year, and complaining they’re broke. They bought more things than they needed. Either they should enjoy the things they “thought” they needed, or they should, perhaps, think about whether or not they really did need them.

Afterall, if they now regret not saving money, and cant enjoy their lives and have a nice vacation each year, while not working hard, and enjoying life – then maybe they spent it on the wrong things?

But – I always find it weird, people look down on me for “renting” like i’ve failed at life. But I look at them, and their stress, and their constant worry about paying bills, and how they can never afford to go out to the theatre, or for a nice meal..

I look at the people here complaining that they cant afford things..

.. You can.. You just (as garth said) spent it on the wrong things.

You only get one life.

#119 Dogman01 on 10.18.21 at 10:03 pm

#107 Lead Paint on 10.18.21 at 9:17 pm

“They call for truth and reconciliation, they get performance.”

——————–

A Powerful truth.

https://youtu.be/L-l6tHeseDY

#120 Barb on 10.18.21 at 10:39 pm

An oldster was heard to say:

When one door closes, another opens.
A smart and wonderful man.
But a lousy cabinet maker.

I’d love Shane and family (and dog) living next door.

#121 Philco on 10.18.21 at 10:41 pm

#115 Doug t on 10.18.21 at 9:34 pm
#91 cuke and tomato

LOL oh you surely are smokin the good stuff bro
—————————–
Its hard as hell to silence ignorance…so ya get a pass being swacked. Long as ya aint driving HAHA nobody has to die.

#122 Leo Trollstoy on 10.18.21 at 11:00 pm

I guess Shane wished he had that million bucks when he wanted that detached home

Oh well

#123 Leo Trollstoy on 10.18.21 at 11:02 pm

People like Shane pooh pooh money and act like they’re above it all until life hits them in the face with money problems

#124 C8.9 on 10.18.21 at 11:31 pm

#23 Tristan on 10.18.21 at 1:51 pm

“Garth, I’m looking to start building a more balanced portfolio like you recommend and was wondering if you (or anyone else reading this) can point me towards one of your blog posts which breaks down the correct portfolio allocations?”

Tristan, here is good baseline from Garth’s corporate site, Raymond James, from a while back (Media/Resources page had linked to it), by one of our famed Saturday blog contributors, Ryan Lewenza. He did a nice piece for ‘Investment Executive’ detailing the TI 60/40 B&D portfolio circa Sept. 2019.

https://www.investmentexecutive.com/newspaper_/strategies/a-balancing-act/

Some things have changed since then but you could start with this as the baseline, appropriate for a large 6 figure+ portfolio, and binge read the GF blog looking for and harvesting subsequent the golden nudgets of wisdom Garth, Ryan and Doug drop here in terms of updates to assets weightings, general fund advise, as well as comments on simplifications for smaller portfolios if applicable.

From the 60/40 B&D baseline porfolio, based on your situation (time horizon, risk tolerance, etc.), you can then scale up or down equity/fix income weighting and fund allocations to suite your needs. If not the DIY type, call Garth at TI.

Additional junior blog dog homework includes taking daily notes and journaling during your daily required GF blog reading to capture said golden nudgets of wisdom given here. Secondly, while doing the dishes every Wednesday (or Thursday) night, I assign you to listen to Garth’s Turner Investment Report , a weekly Tuesday podcast (posted by Wed or Thu at the latest). It is informative and enlightenign, doing the dishes will make you wealthy.

https://www.turnerinvestments.ca/weekly-call?sc_lang=en

#125 Tristan on 10.19.21 at 12:10 am

#48 db

Thank you for the info. I have been watching those all in one etfs like xeqt, xgro and xbal but wanted to compare their reit and preferred share holdings (if any) to what Garth recommends. I’m currently holding a lot of fidelity and edgepoint funds through my advisor that have done well but wondering if I can do just as good without the high MER. I play my high risk/growth stocks on my own through my tfsa.

#126 R on 10.19.21 at 12:17 am

I apologize,I said in an earlier comment the Tesla Modle S had automatic door opening when a person approaches. This feature is currently only with the Model X
https://luxuryviewer.com/do-tesla-doors-open-on-their-own/

#127 DON on 10.19.21 at 12:20 am

Garth…take a look at this. Retirement mecca.

https://www.pqbnews.com/news/parksville-qualicum-beach-realtors-hold-contest-to-award-50k-to-first-time-home-buyers/

Someone desperate for a sale where the average age is in the 70s+ and school enrollment is dwindling as the average and above average wage earners are priced out of the once affordable market. The funeral home business is alive and growing in the central island region.

#128 Mr. Subtlety on 10.19.21 at 1:12 am

#29 Shawn Allen on 10.18.21 at 2:33 pm

Dearly Unvaccinated by choice
———– **************** ———————–
It’s okay to admit a mistake and take the vaccine. I would congratulate you for it. We have all been idiots at times. Think of those who would miss you. Do it for them.

—————————————————————–

Hint: Don’t do it for me! I won’t miss you. Good bye; good riddance.

#129 Cowtown Alamo on 10.19.21 at 1:15 am

Alberta votes “Yes” to kill the economic strangle-hold of equalization Quebec and Ottawa held over them. Big step towards separation from the 52 GTA seats that Trudeau Liberals use to keep Canada in a exasperating toilet. Goodbye Eastern Canada, your days as smarmy entitled parasites are soon over.

#130 BillyBob on 10.19.21 at 5:09 am

67 Ponzius Pilatus on 10.18.21 at 5:30 pm

Haha
That’s why I loved vacationing in Bella Italia.
Besides that it is a beautiful country to visit.
Felt like a Billionaire.
100 k for a 2 Star Hotel room.
No problema.
Here’s my 50 Beaver Bucks.
Keep the change.
That’s why Donald G likes it in Mexico.
Playing the big shot.

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

So you’re as vain and shallow as Trump, just in different countries.

Noted.

#131 Kato on 10.19.21 at 6:54 am

For everyone saying Shane’s income “doesn’t add up” or “something isn’t right,” it’s been addressed above. He likely works in mining or energy. With OT he could hit the $200,000 on his own. Working a kilometer or more underground, +30 C all year long on salt-corroded equipment has to pay well, or they wouldn’t be able to find anyone to do it.

#132 crowdedelevatorfartz on 10.19.21 at 8:08 am

@#129 BillyBob
“So you’re as vain and shallow as Trump, just in different countries.”

+++

Correction.
“…as vain and shallow as Trump, with a lot less money….”

#133 Another Deckchair on 10.19.21 at 8:13 am

@59 Fishman

Well said. Olde SunShowers has been raining pity and not listening for a while on this list.

Somehow olde Sunny doesn’t get that being on the path to economic freedom lifts the dark clouds and lets the sun shine, which makes one happier and more giving of time and energy to others.

Too bad really; you can lead a dog to water, but can’t make it drink.

I was hoping that olde Sunny would actually brighten up and report progress, but have not seen any progress on that front. (Still hoping though)

#134 Phylis on 10.19.21 at 8:13 am

#110 Faron on 10.18.21 at 9:23 pm
#103 Dr V on 10.18.21 at 8:35 pm
85 Shawn – I figure beer is the gold standard

https://brookstonbeerbulletin.com/the-price-of-a-beer-1952-2016/

I guess you can argue that there are more choices these days.

Maybe cigarettes? Litre/gallon of gas? Is gas better today?

One of the better and more universal metrics is the amount of time one had to work per unit of illumination:

https://www.statista.com/chart/10567/the-cost-of-light-through-the-ages/
Xxxxxxx
I think the article/chart needs a refresh, led lamps are pretty common place now.

#135 Dharma Bum on 10.19.21 at 8:13 am

#77 Josh in Calgary

Then if/when they decide they want to buy the house it’s completely liquid and ready to go.
——————————————————————————————-

Maybe.

If the timing’s wrong, he could hit one of those 30%-50% market drops right around when he needs the cash, then, uh-oh!

Think it can’t happen? Think again.

That crap happens when you least expect it.

If you have imminent plans to spend cash, keep that cash available and invest the rest. Unless you’re flexible with the timing, you don’t want to have to cash out of equities at a low point.

Be careful.

Keep a $20 bill in your sock.

When was the last time the market dropped 50%? (Hint: not in your lifetime.) – Garth

#136 Dharma Bum on 10.19.21 at 8:25 am

Hey, I got my QR Code – Scannable Proof of Vaccination online the other day.

What I don’t get, though, is why this is necessary if the tracking chip was already embedded into my body by way of the injection.

Hahahahahahaha!!!

https://health-desk.org/articles/how-do-we-know-that-covid-19-vaccines-are-not-being-used-to-inject-tracking-chips

I love the idiocy of the paranoid anti-vaxxer contingent.

#137 crowdedelevatorfartz on 10.19.21 at 8:30 am

Apparently.
It’s not just women’s sports where men seem to excel…

https://theprovince.com/entertainment/books/a-woman-won-a-top-spanish-literary-prize-it-turned-out-she-was-actually-three-men/wcm/bffda9c8-8038-4a5c-adfa-1fa9c7ecebba

#138 Habitt on 10.19.21 at 8:38 am

The equalization vote in Alberta could be divisive. I’d like to see a blog please on how the program actually works and where the cash comes from. Is it reasonable or are changes required to make it fairer. Thanks

#139 the Jaguar on 10.19.21 at 8:39 am

More on the WFH front…….hmm..

According to late September data from HR consulting firm Robert Half, 40 per cent of Canadian employers are planning to anchor a new employee’s pay to their location, as opposed to 60 per cent who will connect it to the firm’s head office. The percentage of employers considering employees’ location is up significantly from 22 per cent in January, when Robert Half last asked the question.

“I think as we head into the new year this is going to be an interesting trend to keep an eye on as more and more employees start to explore the option of relocation,” said Deborah Bottineau, Eastern Canada district director for Robert Half.

In August, Reuters revealed the company’s pay calculator (Googles), launched in June, showed Google employees based in the same office as pre-pandemic could face changes in pay if they switched to working from home, with long commuters hit particularly hard.
A Seattle office employee who commuted in from a nearby county pre-pandemic told Reuters they would face a 10 per cent cut if they continued to work from home.

Companies stand to benefit from remote working, he said, with access to a much wider talent pool than pre-pandemic.

“It’s all about pulling out all the stops to attract and retain talent. Telling someone that their salary is going to decrease because they moved to Collingwood from Toronto isn’t really what’s keeping HR people up at night,”.

#140 Do we have all the facts on 10.19.21 at 9:01 am

Total debt secured by residential real estate in Canada, including mortgages and HELOC, now exceeds $2 trillion.

At 2.5% the interest on $2.0 trillion generates $50 billion per year. An increase of only 1.0% will generate an
additional $20 billion per year(40%).

Residential based debt is big business in Canada.

At 2.5% the $5.5 billion of deferred mortgage payments accumulated during Covid 19 will generate a minimum of $137.5 million per year in additional interest.

At 3.0% $300 billion in HELOC loans will generate $9.0 billion per year in additional interest.

If one was to view debt as a drug and financial institutions as drug dealers the use of teaser rates to get customers hooked and then gradually increasing the cost of their habit would seem immoral, if not illegal.

Teaser rates encouraged by the Bank of Canada have enabled Canadians to assume billions of dollars in additional debt over the past 18 months. As inflation and the demand for loans continues to increase worldwide there is little doubt that interest rates will also begin to increase. A belief that the volume of debt recently incurred by governments will keep interest rates low forever is wishful thinking at best. At some point it will become essential to protect the value of our currency from inflation.

The Government of Canada has promised to increase taxes imposed on financial institutions. However anyone with a calculator can see that even a tiny increase in interest rates will generate more than enough revenue to cover any possible increase in taxes.

Millions of Canadians are now in thrall to financial institutions and are totally unaware of the possible consequences.

Stay tuned as these consequences emerge from the mist.

#141 crowdedelevatorfartz on 10.19.21 at 9:27 am

@#134 Wipe yer Bum
“Keep a $20 bill in your sock.”

++++
Is that “emergency toilet paper” after the market drops 50%?
Cheaper to use a fiver….or your sock.

#142 IHCTD on 10.19.21 at 9:38 am

#71 Golden Advice on 10.18.21 at 6:05 pm

Sometimes live is not fair…
_________

Some honest and hard facts right there. I’ve always thought BC was beautiful, but the thought of ever moving over there never enters my mind. The door is shut as you’ve said. There’s now a closed-loop market where buyers from 15 years ago trade homes with other folks who also bought in 15+ years ago. Occasionally, a rich family from elsewhere will buy in, someone will stretch mightily or get a loan from the BoMaD, or someone will cash out and move away. Outside that it’s mostly a circling whirlpool of cash the government and RE industry feed off of.

If you are young, and not born of extreme generational wealth, BC is a good place to plan on leaving. There’s no point busting your balls trying to sink roots over there if you’re destined to make a “measly” 100-200K.

I half hope my kids will get started off in some other country. Doing that right off the bat when you’re young and mobile is easiest. Things are just not looking too good here, and everything that has come out of Trudeau’s mouth since the last election indicates he’s going to plow us all even further under the turf than he already has. We as a nation will effectively keep voting for dorks like Trudeau until we have to pay for it. That’ll probably be a long time yet.

Until then, we will watch large swaths of high population areas of Canada climb the COL ladder until only the rich and old get ahead, and the young almost universally, must rent. For life.

#143 Shane on 10.19.21 at 10:50 am

Shane here. Not sure why my income stream is unbelievable? I hold two Red Seal tickets (which took over 8 years to get), work between 50-70hrs a week and wages range from $50-70/hr. If anything I’m actually being conservative on my numbers. I think people instead of wondering why the knuckle dragging, lowlife mechanic is making this type of money, they should be asking why more people aren’t. Jealousy and greed is rampant in the world and has got us to the point we are at today with society. My wife and I worked hard to get where we’re at and we’re damn proud of it. I wish everyone success and encourage them to work hard, unless you’re a cat person.

#144 Ponzius Pilatus on 10.19.21 at 11:03 am

#141 IHTCD8
Until then, we will watch large swaths of high population areas of Canada climb the COL ladder until only the rich and old get ahead, and the young almost universally, must rent. For life.
———————-
As mentioned here quite often:
Nothing wrong with renting, just make sure you invest the discount from owning in a Black&Decker portfolio.
And, definitely don’t waste in on Lottey tickets.

#145 James on 10.19.21 at 11:07 am

#107 Lead Paint on 10.18.21 at 9:17 pm

#42 James on 10.18.21 at 3:29 pm
Watching a worm squirm. Trudeau does it best!

——————————————

It’s theatre on both sides. Trudeau does not care about native issues, reconciliation or unmarked graves. Or me or you.

The fact that they even let them appear shows they are naive or desperate.

They call for truth and reconciliation, they get performance.
___________________________________________
Of course he is a second rate drama teacher.

#146 Ponzius Pilatus on 10.19.21 at 11:15 am

#136 crowdedelevatorfartz on 10.19.21 at 8:30 am
Apparently.
It’s not just women’s sports where men seem to excel…

https://theprovince.com/entertainment/books/a-woman-won-a-top-spanish-literary-prize-it-turned-out-she-was-actually-three-men/wcm/bffda9c8-8038-4a5c-adfa-1fa9c7ecebba
———————
If You like transgender stories, Go straight to the source:
Dave Chappelle on Netflix.

#147 James on 10.19.21 at 11:19 am

#117 Faron on 10.18.21 at 9:42 pm

#73 Faron on 10.18.21 at 6:10 pm
This is $115,000 car:

(Spoiler alert, the door won’t close and stay closed).

https://twitter.com/i/status/1450108516505694215

Tesla. LOL.

Correction, that’s a Plaid. A $170k car.
_____________________________________________
Yes but at least it may hold up over the years. You purchase the cheapest car on the market and you get what you pay for. A piece of recyclable junk within a few years. The cheapest cars do not hold their value either.
We once bough a small compact car for a second vehicle and ended up dumping it after three years. Way too many issues. In the end we ended up spending twice as much for a better vehicle and it has lasted eight years so far with no major issues.

#148 Dr V on 10.19.21 at 11:21 am

“When was the last time the market dropped 50%? (Hint: not in your lifetime.)” – Garth

I guess it depends on what “market(s)” you hold.

“The DJIA hit a market low of 6,469.95 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high”

And, as we never sell into storm, it was a long time before recovery.

Being B & D certainly helps, but Dharma qualified his statement with “imminent plans to spend cash”.

Market undulations over half a year are not exactly what was referenced. And who would put 100% of their potential house money in one equity index? Nobody on this blog. – Garth

#149 Dragonfly 58 on 10.19.21 at 11:33 am

Agree 100% IHC, except there is still a ton of money coming in from Asia, specificly South Asia in my area , Fraser Valley. Several serious money places have changed hands near me over the last 6 months. And in pretty much every case the new residents are clearly not from these parts. Not that there is anything wrong with that, but it sure blows localy employed Canadians out of the water.

#150 Ponzius Pilatus on 10.19.21 at 11:44 am

When was the last time the market dropped 50%? (Hint: not in your lifetime.) – Garth
——————————
Dharma Bum is in his 5th reincarnation.
So he’s actually quite old.

#151 Dragonfly 58 on 10.19.21 at 11:48 am

Sorry Shane, didn’t mean to offend. I guess my main point was to question if my wife and I did it the right way. I started out just as knuckle dragging as you did. And my wife also began in an office. But we then both invested several years in post secondary education, climbed the job ladder in quite high stress, and responsibility careers, both worked quite a bit of overtime and still earned less at the pinicle of our working live.
Just makes me question why we busted our humps in a Supervisory Health Care career { Nursing Coordinator at a major Lower Mainland Hospital } and Transportation Tech Supervisors career if we could have just stuck to our original , early career qualification jobs and done as well or better. And saved paying a shockingly large Tuition bill.
Clearly your path is better.

#152 Shawn Allen on 10.19.21 at 11:57 am

No kid gloves for the unvaccinated by choice…

I was chastised as follows:

#104 Lead Paint on 10.18.21 at 8:38 pm

#29 Shawn Allen on 10.18.21 at 2:33 pm
Dearly Unvaccinated by choice

Of the people under 40 who landed in ICU in Alberta, 95% of them are unvaccinated according to Alberta Health. 95%!!

——————————

Enough with vilifying and shaming your fellow citizens, or celebrating their misfortune.

How many under 40 in ICUs without other pre-existing conditions?

I agree they did not make the right decision on vaccination regarding Covid.

Are you perfect in all ways Shawn Allen?

***************************
Interesting that Lead Paint quotes me stating the simple fact that 95% of those under 40 in ICA in Alberta are unvaccinated and complains:

“Enough with vilifying and shaming your fellow citizens, or celebrating their misfortune.”

How many with no pre-existing conditions? I don’t know but I don’t think everyone under 40 should blithely assume they are immune from ICU if they don’t have pre-existing conditions. What is clear is that fully vaccinated people under 40 are almost absent from ICUs. So if you under 40 and want to stay out of the ICU…

In my post I specifically said we have all been idiots at times. I tend to admit my mistakes. It’s time for the unvaccinated by choice people to admit their mistake and get vaccinated.

It’s not time to worry about hurting their feelings. If we share this fact that 95% of those under 40 in ICU are unvaccinated and if that results in several hundred getting vaccinated that’s a good thing and will reduce the spread.

If it results in at least one kid not losing a parent needlessly that’s a good thing. If it results in at least one senior citizen not burying their adult child who died because of vaccine hesitancy, that’s a very good thing.

#153 Slim on 10.19.21 at 12:05 pm

#128 Cowtown Alamo
“Alberta votes “Yes” to kill the economic strangle-hold of equalization Quebec and Ottawa held over them. Big step towards separation from the 52 GTA seats that Trudeau Liberals use to keep Canada in a exasperating toilet. Goodbye Eastern Canada, your days as smarmy entitled parasites are soon over.”

Want some whine with your cheese?

#154 Sail Away on 10.19.21 at 12:44 pm

#141 IHCTD on 10.19.21 at 9:38 am

Re: high RE costs

——–

Any tactic that places most of the population in debt (RE in this case) stimulates a productive economy by ensuring people work as long and hard as possible for the sole purpose of returning most of their earnings right back to circulation.

It’s a good productivity tactic. Luckily, there’s no need to buy into it. Just recognize it happens and make a conscious decision to act differently.

The amount a person earns is never the important thing for future stability. It’s the amount retained. Get rich slowly, like Buffett and Munger.

Warren Buffett and Charlie Munger had a third partner, Rick Guerin, for a while. Of Rick, Buffett says, ‘[Charlie and I] were not in a hurry to get wealthy; we knew it would happen. Rick was just as smart as us, but he was in a hurry.’

…and he blew himself up using leverage… Cautionary tale.

#155 Dr V on 10.19.21 at 1:15 pm

142 Shane – good work! Just remember at some point you will slow down. A couple of nagging injuries in mid-life basically ended by BILs HD wrenching days by his early 50s.

#156 Paterfamilias on 10.19.21 at 1:33 pm

# 141. IHCTD. BC continues to be beautiful. That doesn’t make it, necessarily, the best place for everyone. There are lots of opportunities, in lots of other beautiful places (as well as in some not-so-beautiful). If somewhere else is better for you, you should go there.

However, depending upon the type of individual, opportunities can be found where they are made. As I have mentioned, on this blog, before, I grew up in Vancouver (a very different Vancouver, a long time ago). I lived and worked much of my life (but not all – so far) in BC. Now long-retired, I live very comfortably in a house of my own – neither inherited from my parents nor won in a lottery. It is NOT located in either Vancouver or Victoria. In my neck of the woods, it is possible, still, to obtain a comfortable ‘family’ house, with yard for the kids, for $ 500,000 – $ 550,000. Not cheap by my understanding, but not out of reach for a working couple to-day.

If you are prepared to uproot yourself and leave the province and country, you may do so. If you are prepared to do so, you might also be prepared to consider moving within this province to somewhere outside the southwesternmost 5 % of it.

Should you have decided that Vancouver = BC (the same way some seem to have decided Toronto = Canada), then perhaps you should experience life elsewhere.

#157 IHCTD9 on 10.19.21 at 1:33 pm

#148 Dragonfly 58 on 10.19.21 at 11:33 am
Agree 100% IHC, except there is still a ton of money coming in from Asia, specificly South Asia in my area , Fraser Valley. Several serious money places have changed hands near me over the last 6 months. And in pretty much every case the new residents are clearly not from these parts. Not that there is anything wrong with that, but it sure blows localy employed Canadians out of the water.
___

Yep, I generally assume this kind of stuff is a bigger problem than we’ll ever know out there. Lots of differing opinion on that point. Lots of money at stake too. Too much subterfuge to see the truth.

IMHO, I wouldn’t be spending much time trying to figure it all out. I’d rather be putting that energy into planning my exit from BC.

#158 IHCTD9 on 10.19.21 at 1:46 pm

#136 crowdedelevatorfartz on 10.19.21 at 8:30 am
Apparently.
It’s not just women’s sports where men seem to excel…

https://theprovince.com/entertainment/books/a-woman-won-a-top-spanish-literary-prize-it-turned-out-she-was-actually-three-men/wcm/bffda9c8-8038-4a5c-adfa-1fa9c7ecebba
___

You know how the evolution of long range bombers reached its zenith with the development of stealth technology?

Well the patriarchy is doing the same thing.

Soon, it will be as if Men never existed at all. The masculine names, and 5 O’clock shadows – a fading memory.

But – we’ll still be here… Muhahahahaha!!

#159 IHCTD9 on 10.19.21 at 1:55 pm

#142 Shane on 10.19.21 at 10:50 am
Shane here. Not sure why my income stream is unbelievable? I hold two Red Seal tickets (which took over 8 years to get), work between 50-70hrs a week and wages range from $50-70/hr. If anything I’m actually being conservative on my numbers. I think people instead of wondering why the knuckle dragging, lowlife mechanic is making this type of money, they should be asking why more people aren’t. Jealousy and greed is rampant in the world and has got us to the point we are at today with society. My wife and I worked hard to get where we’re at and we’re damn proud of it. I wish everyone success and encourage them to work hard, unless you’re a cat person.
___

Now wait just one bloody minute here!

I am a knuckle dragging (amateur) mechanic – and Cat person!!!

Last guy we had in here to fix one of our boring Mills was 160.00/hr – one man + one van show.

#160 SoggyShorts on 10.19.21 at 2:03 pm

#82 Ardy on 10.18.21 at 6:58 pm
I thought we were doing okay with 2 DB pensions, early CPP and full OAS……for $60,000 net a year total.

I see now how badly our pensions suck and we are poor people.
************************
$60K per year is like having a $1,500,000+ portfolio with no pension and living off it and the growth/dividends.

As long as you don’t want to live in a huge house in the most expensive area codes on the planet you’re set.
After reasonable rent, you’re left with more than $100 per day to eat and have fun.
Post-covid you can move around, see the world eat out as often as you like. $60,000 per year is enough for an excellent life.

#161 Philco on 10.19.21 at 2:33 pm

#158 IHCTD9 on 10.19.21 at 1:55 pm
I am a knuckle dragging (amateur) mechanic – and Cat person!!!
Last guy we had in here to fix one of our boring Mills was 160.00/hr – one man + one van show.
——————————–
Yup me too IHCTD9. Shane you are not over paid.
Officially I’m a cell tech / ticketed engineer.
But I spent my life wrenching pretty much everything from diesels to lawn mowers. Also building houses and steel buildings (mini storage).
At the cost of repairing things these days you can’t have too many skills that’s for sure. Better to be handy then hansom lucky for me!
Recently I called a diesel tech in Campbell River (good guy) as my propane gennie on my Lance camper quit out of no where. Propane can be tricky…low pressure regs and all.
Outa curiosity how much to take a boo I asked? $2000+ he says. He’s $140hr.
I said you give me the pressure specs as and Ill do the rest! I drop a big Timmy card when I go through Campbell. I never expect anything for free…Time is money these days.
Best to IHCTD9 and Shane!!
PS right now I got roped into installing a commercial security camera system. Variety is the spice of life I think.

#162 Dragonfly 58 on 10.19.21 at 2:34 pm

#155 Paterfamilias. I worked a year in the B.C. North in the late 1980’s. But as a newly minted professional , not a resource industry tradesman. The pay was the same as back in Vancouver, but the cost of everything except property { middle of nowhere = dirt cheap in those days} was geared to people making resource industry wages. Between the -40 temp. and the shocking cost of living it was a serious mistake , back to the Lower Mainland as soon as my contract ended. I could have possibly gone back to my origonal trade and done better , but hiring seemed to have a lot to do with who you knew locally. As a gringo from the South I would have had a hard time breaking into the local job scene. Seemed like everyone I met locally had a wide family network in the local logging , milling industry.

#163 Faron on 10.19.21 at 3:03 pm

#146 James on 10.19.21 at 11:19 am

#117 Faron on 10.18.21 at 9:42 pm

Yes but at least it may hold up over the years. You purchase the cheapest car on the market and you get what you pay for. A piece of recyclable junk within a few years. The cheapest cars do not hold their value either.
We once bough a small compact car for a second vehicle and ended up dumping it after three years. Way too many issues. In the end we ended up spending twice as much for a better vehicle and it has lasted eight years so far with no major issues.

Sounds like you bought a kia or a chevy aveo or something. Guessing you haven’t driven a Toyota. Here’s what Consumer Reports says (note that Tesla used to be way up near the top):

https://www.usatoday.com/story/money/cars/2020/11/19/consumer-reports-auto-reliability-survey-2021-cars-trucks-suvs/6337648002/

Tesla is second to last. Ouch. 4 of the top 10 most reliable models are Toyota/Lexus. Your chances of spending a crapton of money on a Tesla and getting horrible quality is much higher nowadays than almost every other brand. A $160k car should have doors that work. I’m sorry, but that’s the way it is. It’s gaslighting to say otherwise.