The squeeze

Paul Kershaw is no slouch. A professor at UBC. Media hound. Lobbyist. Founder of Generation Squeeze. His side hustle consists of whipping up Millennial hate for Boomers, arguing that younger people have never been this financially ravaged and battling the housing market.

The result? Bingo.

You can probably thank PK for the FHSA. In a few months Canada will have a new age-restricted and surprising tax shelter only for people under forty. They can plunk in $40,000 each, write that off taxable income, grow the money without being taxed then withdraw it (no tax) to buy a house that will make untaxed capital gains. Never has Canada seen anything this forgiving. So narrowly targeted. So generous. It’s fair to say Paul did that, bending pliant politicians around his persuasive digit. He’s also the dude most credited with BC’s creation of a new tax on real estate the government deems is not occupied enough.

Lost on him, perhaps, is the fact giving people a powerful new tool to afford houses will increase demand, rendering them less affordable, or that taxing properties more doesn’t make them cheaper. But he’s only a professor. And he’s young. He’ll learn.

Here is the Gen Squeeze argument: the young are being screwed over as government spends more on the old than them. Also Boomers own houses which have inflated like crazy, and the kids can’t buy now without swallowing massive debt. Wages have not advanced enough over time and, heaping more unfairness on it all, the Mills are way more educated (= smarter) than their parents and therefore should have better lives. This is why they’re struggling, angry, squeezed and militant.

Is this true? Did we greedy wrinklies suck off the entire future? Or are the kids just whiny, entitled crybabies who want instantly what their parents took decades to get?

Interestingly, a recent US central bank study found Boomers have 51% of all net worth but make up only 21% of the population. GenX (both 1965-80) owns 28%. Millennials (1981-96) now comprise 21% of the pop but possess only 6% of total assets.

Ah-ha!, cries the professor. Screwed! Get Socks on the line!

Not so fast.

First the argument that spending on 65+ people – like with universal OAS payments – is unfair to the young, won’t hunt. We all get old. The same payments will be there for the Millennials when they need thirsty underwear. If there’s no outcry over a tax shelter just for the under-40s, then shut up about payments to the Boomers. Sheesh.

Second, parsing up national assets by age cohort is just dumb. It’s unfair, statistically corrupt and completely divorced from the way lives develop. First Trust in the States dove into this myth and also concluded this Gen Squeeze way of thinking is totally misleading. Also manipulative. And, for a smart professor, embarrassingly facile. Instead of measuring the share of net worth held by each generation, it’s better to measure the average level of wealth for generations at similar points in their adulthood. In other words, how do 30-year-olds today compare with Boomers thirty years ago, when they were the same age?

The math is tricky, since inflation needs to be stripped out, but the conclusion is stark. First Trust also included every single member of a generation in its calcs, from Warren Buffet and Jeff Bezos for the Boomers to Elon Musk for GenXers to those ridiculous TikTok millionaires for Millennials.

The average GenX is 48 years old and has net worth of $1.108 million. It turns out Boomer households, on average, owned $730,000 in assets at the same age (adjusted for inflation). Meanwhile the average Millennial is 32 and Mill households typically hold $196,000 in net worth. At the same age, GenX households owned and inflation-adjusted $158,000 in stuff.

The bottom line is that, at the same point in their lives, the average Gen Xer is better off than the average Boomer and the average Millennial is beating the average Gen Xer. If policymakers obsess about shares of net worth rather than growing the whole pie, they may adopt more policies that slow economic growth and wealth creation and then Millennials could end up being thrown off track. For now, however, it’s important to recognize that Millennials don’t have it as bad as many think.

Maybe the squeeze isn’t between generations, but betwixt those who are carving out careers, investing, and building, and those who moan. Just a theory.

About the picture: “Long time reader but never ventured to post in the comments swamp,” writes Drew. “No exaggeration, you’ve changed our financial future for the better. Really appreciate what you do.  Here is a pic of Levi, our German Short-haired Pointer. Our previous $200 ‘Concession Special’ had to be put down at age 13 at the end of April 2020, the beginning of Covid. Despite swearing we’d never get another dog, a house just isn’t a home without a dog. So two weeks later we picked out Levi from a litter…$1250. The next litter the pups were $2500. Covid inflation.  Sure hope this can make your blog. Levi’s been the best thing about Covid. He’s such a good boy.”

204 comments ↓

#1 Jim on 10.19.21 at 2:35 pm

‘A worldwide Xmas tree shortage’ lol Grover

https://youtu.be/pH5KJZuuyg8

#2 Paterfamilias on 10.19.21 at 2:36 pm

Plus ca change.

#3 Adam on 10.19.21 at 2:45 pm

The average GenX is 48 years old and has net worth of $1.108 million.

***

I find this hard to believe. Where do these numbers come from? Is this family net worth? Is the average being severely skewed by GenXers with really high net worths?

If this is true I need to start hanging out with much richer friends.

As stated, that is an average of all GenXers, including the billionaires. Don’t feel inadequate. – Garth

#4 Sail Away on 10.19.21 at 2:47 pm

Hey, a report back on the Canada Greener Homes grant program:

We signed up immediately upon its inception in May, and now have the home energy assessment booked for November 10.

It sure would be nice to get a $5k grant toward a new furnace and help make climate happen. Because carbon.

Per Garth’s article, my wife and I, at mid and late-forties, are not even in the same ballpark as average Gen-X net worth. Sigh.

#5 Bob on 10.19.21 at 2:52 pm

First Trust’s conclusions are a little hard to believe. What was their methodology? Can you provide a link to the study? Are they playing games with means and medians?
It seems to directly contract articles link this one: https://www.cnbc.com/2021/04/16/older-millennials-wealth-previous-generations.html

Average, not median. As written. – Garth

#6 Leichendiener on 10.19.21 at 2:56 pm

Sometimes a successful life means a ‘tour of duty’, that is leaving family and friends after graduation and going to where the career opportunities are, which may be a remote location. It may be lonely but you can save a nest egg and when you return to civilization, you have the experience and are capitalized. Certainly not for everyone.

#7 SunShowers on 10.19.21 at 3:00 pm

“growing the whole pie”

As multiple studies have shown, “growing the whole pie” is largely useless because of the way the pie itself is divided.

Millennials vs Boomers is a distraction. It’s always been the 99% vs the 1%. Increasing the size of the pie does nothing for most people when 90% of that gain is going to the richest 1%, no matter the age of that 1%.

#8 Jim on 10.19.21 at 3:04 pm

imo should never trust any ‘adjusted’ numbers….plus, G, u r comparing household vs. Individual…(GEnx)…

All numbers are for households, and adjusting for inflation gives a far more accurate comparison. – Garth

#9 Faron on 10.19.21 at 3:05 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.

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.

#10 Sail Away on 10.19.21 at 3:05 pm

Levi is one fine-looking animal. Almost identical to our gigantic-for-the-breed 70-lb Munsterlander, but less feathery. Same blocky masculine head.

Tomorrow kicks off a week of grouse, pheasant and duck hunting for our pack. Levi would love it.

#11 TurnerNation on 10.19.21 at 3:10 pm

#63 Dogman01 on 10.18.21 at 4:57 pm
Great Intel. I don’t think people can imagine what’s coming.
California banning small gas engines, mowers. What else utilizes the small gas engines? Generators.
That’s right – electrical generators. We are to become made totally dependent upon the nanny state electrical wire running into your house.


— This is a PERMANENT state of affairs. 2022-23 likely 2025 into the ongoing Reset – in all the Former First World Countries

https://www.mirror.co.uk/news/politics/mps-extend-covid-powers-march-25251887
“MPs extend Covid powers to March 2022 as Boris Johnson avoids Tory revolt
There was no formal vote in the Commons as the Coronavirus Act – which has finally been stripped of its most ‘draconian’ powers – was extended to 24 March 2022”

— What’s next for Kanada. Slow wind down.

“The Globe and Mail reports in its Tuesday edition that Canada’s securities regulators have proposed requirements to standardize climate-related disclosure by companies, but they leave open the possibility that not all carbon emissions will have to be accounted for. The Globe’s Jeffrey Jones writes that the Canadian Securities Administrators (CSA) said in a news release on Monday that new mandated measures would provide the consistency companies and investors alike have demanded as they assess risks to businesses related to both the physical climate and the transition to a lower-carbon economy.
© 2021 Canjex Publishing Ltd. All rights reserved.”

–Globally: permanent reset lockdowns.

.Health Ministry proposes immediate lockdown in Latvia (eng.lsm.lv)

#12 Tom on 10.19.21 at 3:10 pm

No , the government is not spending more money on boomers, they have just been the beneficiaries of excessive speculation, money laundering and the financialization of housing. Most didn’t have investing savvy, they just bought a home when they could afford to. Nothing more than that. The under 40 crowd is generation screwed.

#13 crowdedelevatorfartz on 10.19.21 at 3:12 pm

@#4 Sail Away
“Per Garth’s article, my wife and I, at mid and late-forties, are not even in the same ballpark as average Gen-X net worth. ”

++++

You’re Much, much richer…..
:)

#14 crowdedelevatorfartz on 10.19.21 at 3:18 pm

Goodness gracious.
What IS China up to?

https://graphics.reuters.com/TAIWAN-CHINA/byvrjrmgnve/index.html

#15 Adam Smith on 10.19.21 at 3:19 pm

There is a bit more to the Boomers robbing the Mils theory.

This video by Lord David Willets at the Royal Institution is worth watching:

Have the Boomers Pinched Their Children’s Futures?
https://www.youtube.com/watch?v=ZuXzvjBYW8A&t=4s&ab_channel=TheRoyalInstitution

It’s more focused on the UK specifically but a lot of the examples he provides translate to Canada. It really just comes down to political power based on demographics. Lots of Boomers means lots of political power and lots of politicians pandering for those votes.

There are more Millennials than Boomers. Just ask Justin. – Garth

#16 Squee...gee on 10.19.21 at 3:23 pm

People you think are in your corner, are not.

When will everyone learn this?

You don’t know them.

They don’t know you.

You’re on your own.

Leaders imitate those they see leading, and our leaders/politicians are master deceivers. And this is what others respond to.

Perhaps that is what the majority respond to.

#17 T-Rev on 10.19.21 at 3:28 pm

Proven scientific fact: adjusted for inflation and using the years 1850-2021 as the sample space, sentences containing the word “betwixt”contain on average 893% more wisdom than the average sentence in the English language. Govern yourselves accordingly.

#18 Prince Polo on 10.19.21 at 3:28 pm

No way us pathetic Millennials can blame the person in the mirror! What a ghastly suggestion.

#19 Another Deckchair on 10.19.21 at 3:29 pm

This is weird.

As a member of the oldsters on the block (very early 60s) we have an old early ’50s bungalow, one car, two bikes, and have had zero debt for a long time.

The houses around here – the small ones get removed and replaced with a three story monstrosity, or the house gets “supersized” with another floor and an extension out the back. Yup, there are at least 2 cars out in front, and often a motorcycle or equivalent to show off with. The garage is stuffed with “stuff”. New builds – the bungalow replacements, go for upwards of 3 mil.

What’s wrong with a small house, with a small yard, and no garage? It worked for their parents and grandparents, it worked for us, why will it not work now?

I’d love to have one of these 3 million dollar houses, but can’t afford it. How can the kids afford them? Is it marketing pushing this stuff?

Signed – Confused

#20 MedianValues on 10.19.21 at 3:31 pm

Garth,

As you say, the average values include billionaire households, which may be skewing the results. Perhaps the median values would tell a different tale. Do you happen to have the median values handy?

#21 Tim on 10.19.21 at 3:32 pm

“Goodness gracious.
What IS China up to?

https://graphics.reuters.com/TAIWAN-CHINA/byvrjrmgnve/index.html

Taunting Taiwan, Xi will do anything to stay in power–like starting a war…
Glad the Yanks sold those nuclear subs to the Aussies

#22 Don Guillermo on 10.19.21 at 3:34 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.
——————————–
Porsche – “More than 70% of all cars made since 1948 are still on the road today” says the Norway Classic Center.

https://www.autovinogroup.com/sooner-porsche.html

#23 Leftover on 10.19.21 at 3:39 pm

I reminisce:

Bought a place in YVR in late 1980’s for $300k, had $50k to put down. Household income was about $70k, cleared about $4500 a month as I recall.

Mortgage, at 11.75%, was about $2500 a month, plus taxes and insurance, just under $3000 total monthly expenses so we “lived” on maybe $1600 (food, car, not much else). So housing amounted to over 60% of take home pay. Not luxurious and stressful.

Today that house is worth $1,750,000 or so. A millennial household making $200k (common) clears about $145k or $12,000 a month. With $300k down and a $1,450,000 mortgage (!) at 2.5%, their monthlies are around $7,000 a month, or 58% of take home.

So apples and apples. Only difference was that we expected rates to go down (they did, and it felt like robbing a bank) while our spawn can only expect rates to increase (they will).

It’s all about interest rates and risk. That’s where boomers had an “advantage” and it sure didn’t feel that way at the time.

#24 XGRO and chill on 10.19.21 at 3:45 pm

Articles and studies are all over the place regarding this topic. Just spend some time googling.

For example:

https://www.washingtonpost.com/business/2019/12/03/precariousness-modern-young-adulthood-one-chart/

You’d have to be a statistician to weed through the data and studies to know what the real picture is.

#25 T-Rev on 10.19.21 at 3:47 pm

Here’s one to get you started: If two otherwise well meaning people disagree so vehemently that they begin to develop a hatred of one another, by each putting a Harely betwixt their legs and riding together they will either solve their differences or at minimum realize those differences are not worth hating over.

#26 Robert S on 10.19.21 at 3:49 pm

You forgot to mention the rampant inflation of the early eighties and the number of boomers who had house foreclose, when they tried to renegotiate their mortgage

#27 mike from mtl on 10.19.21 at 3:50 pm

#19 Another Deckchair on 10.19.21 at 3:29 pm

…What’s wrong with a small house, with a small yard, and no garage? It worked for their parents and grandparents, it worked for us, why will it not work now?
///////////////////////////////////////////////////////////////

Nothing wrong with that, family of four grew up in small bungalow, the ‘garage’ was the driveway and a tempo and gads.. 1 washroom – today that would be a non-starter.

Thing is even if you wanted to, today it is practically impossible to see those homes built today. Draconian zoning, land use ‘standards’ and NIMBYism guarantees the only profitable build type is the blown out cardboard and plastic mcmanson style.

Plus the municipalities love it, high prices = more taxes & fees for them.

#28 Left GTA on 10.19.21 at 3:50 pm

@ Another Deckchair Yes you are so right. When my parents sold their 900 sq ft bungalow it was torn down and a huge house was put up in its place. Everything is supersized and expectation of interior finishes is unreal.

The net worth in the comparison includes the home?

#29 crowdedelevatorfartz on 10.19.21 at 3:53 pm

@#21 Tim
“Glad the Yanks sold those nuclear subs to the Aussies”

+++

They dont start getting them for at least 5 years.

I suspect Chairman Xi will drag us into a war much sooner than that.

Perhaps Canada’s politicians will have finally decided what next gen fighters, helicopters, etc we want ……..as the bombs are dropping.

#30 Millennial Realist on 10.19.21 at 3:56 pm

Average numbers are heavily distorted by the ultra wealthy, so should be taken with a grain of salt.

Boomers, you were born on third base.

You did not hit a triple.

Be part of the change.

Or be run over by it.

#31 crowdedelevatorfartz on 10.19.21 at 3:56 pm

Anyone feel like an Ocean Spray?

https://vancouver.citynews.ca/2021/10/19/bc-cranberry-season-ending/

#32 The West on 10.19.21 at 3:59 pm

#7 SunShowers on 10.19.21 at 3:00 pm

“growing the whole pie”

As multiple studies have shown, “growing the whole pie” is largely useless because of the way the pie itself is divided.

Millennials vs Boomers is a distraction. It’s always been the 99% vs the 1%. Increasing the size of the pie does nothing for most people when 90% of that gain is going to the richest 1%, no matter the age of that 1%.

———————————————————

Correct.

I respect Garth’s entry. Anybody who is educated (assuming this is pretty much everybody in “steerage” who has found this blog) statistics are the lowest lying fruit to creating an “argument” and can always be used to present “truth” – depending on the perspective of the argument. :)

What Garth has left out of this is: the share of the wealth (what percentage remains in each “social class”), how that “wealth” was created and, most importantly, the purchasing power of the dollars earned.

Garth is a self described “wrinkly” – he presented his argument with his stats. But, the real conversation, is the centralization of western economics and the printing presses that keep the current establishment above water.

Boomers had a fair better shake.

#33 calgary rip off on 10.19.21 at 4:02 pm

Having bought a mortgage is not the same as owning the house. My mortgage was $420k in 2011. I make around $120K a year with overtime. Think there is around $300K left on the mortgage. Got an RV, wife drives a cadillac and I drive a 2005 van that is spray painted baby blue on rust spots. Kid drives a 2001 Saturn. Other assets? $24K in microsoft stock and a ton or RRSPs in mutual funds.

What matters most? Your health. If you cant earn all the above doesnt matter. Over and over in Calgary I hear of people using alcohol to cope with stress. This is a dead end. Of all the places I have lived in, Calgary is the most stressful. What is most important in Calgary is managing central nervous system stress with exercise, nutrition, and proper sleep. None of those three are easy, and financial stress makes them even harder.

Additionally, Alberta has been mismanaged by arrogant politicians and people. Some people I work with have ranches and horses. This is clueless behaviour. This behaviour doesnt represent Alberta now. The millions of dollars wasted on oil funds are gone now. There is no provincial sales tax and the bitumen in Fort Mac is not going to get to market. Ever. Done. Over.

I agree that Gen X and Milennials are getting screwed over. At the same time the Boomers didnt have things any easier the problems were different.

I wonder when Alberta as a province will collapse. The unit I work on by my estimates cost around $20 million a year to operate with staff, materials, and doctors costs. And that is only one floor of a 11 floor hospital. And this is only medical care.

Again, physical health comes first above all else.

#34 JP on 10.19.21 at 4:04 pm

“Maybe the squeeze isn’t between generations, but betwixt those who are carving out careers, investing, and building, and those who moan. Just a theory.”

Gen-X’er here. It seems every generation has its opportunities and challenges. Nowadays social media amplifies the challenges, hence the moaning, and while there are certainly hardships (e.g., unaffordable home prices), there are positive aspects such as increased lifespan. My grandfather, part of the Greatest Generation, used to tell stories about the war, and it deeply, truly, gave me a profound respect for what his generation did.

Discover what you’re great at and develop it, build it, nourish it, share it. I learned long ago that it’s ok to point out injustices and perhaps even try and change them. But, the “woe is me” approach never worked for me, and I think, never really improved other people’s lives either.

#35 Faron on 10.19.21 at 4:04 pm

#22 Don Guillermo on 10.19.21 at 3:34 pm

#146 James on 10.19.21 at 11:19 am

Porsche – “More than 70% of all cars made since 1948 are still on the road today” says the Norway Classic Center.

https://www.autovinogroup.com/sooner-porsche.html

Porsche’s have a timeless design that makes people want to preserve them. I think that’s a different convo..

#36 X on 10.19.21 at 4:04 pm

There are more Millennials than Boomers. Just ask Justin. – Garth

Yep. Doing what is fair, or right isn’t what gets one re-elected.

The FHSA is ageist. Why was the TFSA contribution reduced for all, where the stats clearly show it would have been the boomers with more wealth, and in retirement, who would have benefitted by leaving it as it was for that age group. But the FHSA is just for the kids.

Ironically I am of neither age group affected by these moves, but think the FHSA and the reduction of the TFSA limits, reeks of vote buying.

#37 Faron on 10.19.21 at 4:07 pm

#24 XGRO and chill on 10.19.21 at 3:45 pm

https://www.washingtonpost.com/business/2019/12/03/precariousness-modern-young-adulthood-one-chart/

Looking forward to Nonplused chiming in to explain to us his ideas about mark-to-market “wealth” etc. etc. Of course, he will completely and conveniently fail to acknowledge that wealth can be borrowed against to give a low apparent income and a lavish lifestyle.

#38 alexinvestor on 10.19.21 at 4:16 pm

Let’s do some math. Suppose the average Millennial household has 200K. What rate of return and savings would it take to get to 1.1m adjusted for inflation in 16 years ? At 4% + inflation rate, it would take 33K in savings annually increasing at rate of inflation. At 3% + inflation, it would 39K in savings annually. Plus these Millennials also have child care expenses.

GenXer’s got rich off the greatest asset inflation bubble we’ve ever seen. Will this continue ?

#39 Ryan Diebel on 10.19.21 at 4:20 pm

#23- millenial couples make 200K ? nice to know you are in touch with reality.

#40 Trust me! on 10.19.21 at 4:20 pm

Trust me!

Dude, do I not look trustworthy to you?

Just look at me? I did all the trust worthy things. I got a suit on that’s clean. I’m wearing glasses. My shoes are buffed. I look like I have ID and a wallet. I told you my name.

Trust me.

Why wouldn’t you? I’m telling you the truth, always. Why wouldn’t I tell you the truth? It’s not like I have something to gain from not telling you EVERYTHING I know. From driving your decisions this way or that way.

Trust me. I’m your friend.

9 out of 10 people trust me, you should do.

#41 Patrick Hardy on 10.19.21 at 4:24 pm

I doubt this, Garth:

[i]First the argument that spending on 65+ people – like with universal OAS payments – is unfair to the young, won’t hunt. We all get old. The same payments will be there for the Millennials when they need thirsty underwear.[/i]

Governments are broke. Either they inflate away their current debt which means anything one gets from them won’t buy anything, or slash and burn in a way that would make Mike Harris himself wince.

Also averages are a poor way to contextualize wealth. Take out a few at the right side of the distribution and the average drops drastically. Averages should not be used for any comparison purposes outside what Mother Nature herself creates.

#42 Shawn Allen on 10.19.21 at 4:25 pm

Speaking of the Universal Old Age Security benefit…

Which I have never begrudged.

It is indeed fully indexed. I was trying to find the latest increases and found it gets adjusted for the Canadian all-items CPI every three months.

The latest increases were October 1, a 1.4% bump to $635.26 and in July a 1.3% increase to $626.19. I could not find the two increases before that.

The point is it is fully indexed and lo and behold some pretty solid increases lately. But of course the lament will be it is never enough and groceries are up more than that and certainly gasoline.

And $635 per month is hopefully nothing but a bit of extra spending money for the seniors that read this blog. And hopefully many of us are in the claw-back range or even past it. But for some people it is a lifeline.

I just wonder that I have not heard much about these increases that do keep up with official inflation.

Also with CPI running hot and with “elderly benefits’ making up $62.5 billion this year I suspect there is at least a billion, maybe 2 billion of unanticipated spending here due to high inflation. But what’s a billion or two these days?

These transfer to elderly make up 18% of federal revenue but “only” 13% of federal spending.

Compare transfers to elderly at $62.5 billion to Canada Child Benefit of $27.2 billion. Interesting? More proof we are an aging (and aged) society.

#43 Stone on 10.19.21 at 4:26 pm

the Mills are way more educated (= smarter) than their parents and therefore should have better lives.

———

If they were so educated (and smart), shouldn’t they have figured that out already?

#44 Rook on 10.19.21 at 4:26 pm

When you plunk $40k down into the account, how does that work as taxable income?

Is it the same as an RRSP contribution? Or is it only in a circumstance where you borrow the 40k and write off the interest?

#45 ElGatoNerodeYVR on 10.19.21 at 4:27 pm

Methodology of Median vs. Average does not change the facts that if you work hard and smart , budget ,save and invest ofcourse you will have more when older.
The issue here is that not a single professor or politican wants to admit the above and instead pander to the “I want it’ all now ” generation who were taught in schools that all you need is to want it, visualize it and you can get it regardless of skill and effort you put into it.
Sad really.

#46 Angie on 10.19.21 at 4:28 pm

Missing from the equation is debt relative to those net worths. I’m willing to bet the ratio of debt to assets for boomers was more favourable at age 48.

Net worth = Assets-Liabilities. – Garth

#47 Bob in Hamilton on 10.19.21 at 4:29 pm

“But he’s only a professor. And he’s young. He’ll learn.”

Not really…

#48 Dolce Vita on 10.19.21 at 4:29 pm

For those of you in Limbo about Garth’s numbers here is some solace for you all:

CRA Individual Tax Statistics by Tax Bracket & Age 2019 Edition (2017 tax year) – did the download and added in the Generations though year ranges & at the mercy of Gov Canada (close enough for Government work) – this is the latest they have so guesstimate on your own some 3 years of income & population growth:

https://i.imgur.com/wD3708V.png

Assets, debts and net worth of Canadian families, 2019 (pretty picture, Coles Note version for the immediate gratification, “slice and dice” challenged):

https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2020089-eng.htm

For those that like the “real deal” rather than pretty pictures with endless “slice and dice” opportunities:

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001601

StatCan lumps Millennials and GenZ into 1 group unfortunately (Age Group: “under 35”). Total Values very good as you can select % of or # of.

Basically, pick 2019 only, an Age Group and look at % of population or # of. Also by Province.

And YES, you have MEDIAN and AVERAGE to select from. Put that debate to rest.

——————–

Bottom line in 2019 (x $1,000,000):

Total Assets 13,615,026
Total Debt 1,866,265
Net Worth 11,748,761

Number holding Asset or Debt 15,914,000.

Affluent bunch.

…knock yourselves out.

#49 Just Sayin' on 10.19.21 at 4:31 pm

The World’s Biggest Real Estate Bubbles in 2021
https://www.visualcapitalist.com/worlds-biggest-real-estate-bubbles-in-2021/?utm_source=Visual+Capitalist+Infographics+%28All%29&utm_campaign=39098f7f13-EMAIL&utm_medium=email&utm_term=0_31b4d09e8a-39098f7f13-45392627

#50 Kilt on 10.19.21 at 4:34 pm

I’m surprised that the FHSA would go through. Seems like a policy that benefits wealthy families. What is to prevent me from giving my kids $40k each to fund their FHSA and write off some tax at the same time. And parents with higher income tend to have kids with higher incomes so there would be a greater tax benefit.
How can this help lower to middle income families that can’t scrape enough money together for a 5 or 10% down payment.
Kilt.

#51 Nonplused on 10.19.21 at 4:40 pm

Ah, that’s one of the great things about economics: There is always a way to measure things to prove your point.

As I sort of but not very completely argued at #43 yesterday, life in Canada today is better than it has ever been, and that is by and large for everybody. Measuring some things in inches and others in centimeters and then comparing them doesn’t change that fact. We live in an age of abundance.

It doesn’t seem that long ago that people used to marvel at the things say my grandfather saw. The Wright flyer first took to the air in 1903, but by the time my grandfather died (at a relatively early age) he had already flown back to Europe non-stop several times. Radios powered by vacuum tubes existed but by the time he died he was building circuits with integrated circuits he got at Radio Shack. Computers weren’t everywhere but they existed. When he was born and for a while afterwards right through WWII (which he fought in) trains ran on steam.

People often marvel at the changes people born around 1900 saw over their lives. But what about us? The pace of change has only accelerated. We aren’t talking about the invention of the transistor anymore, we are talking about 4K graphics on our Play Station. There are millions of transistors in that processor, so the cost of a transistor has gone to practically free. There are treatments and cures for all kinds of diseases (except covid). So many Subway restaurants you can get from one side of the city to the other and never be out of walking distance of one. A mandatory smart phone in every pocket starting at age 12. Kids are packing laptops to school. Costco and Walmart have all the clothes you need for cheap brand new, but you can still get near new clothes second hand (not at the second hand stores though, they won’t resell Walmart stuff, to cheap even for poor people). We got LRT’s running everywhere if you don’t have a car. People are literally overwhelmed with stuff and opportunity.

So what is more expensive than it used to be? Well, food, energy, and housing. Those are pretty big items, and make up the majority of most people’s budget. And unfortunately those things are scarce, so as the world’s population increases they can only get more expensive. (More on that later maybe.) But despite these problems, if you were to pick a time to be alive during all of human history, this is it. It wasn’t that long ago we were digging in the dirt with our hands and doing rain dances.

#52 Dolce Vita on 10.19.21 at 4:46 pm

For the curious that want to play with the numbers by generation, tax bracket or whatever…source data for:

CRA Individual Tax Statistics by Tax Bracket & Age 2019 Edition (2017 tax year)

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/income-statistics-gst-hst-statistics/individual-tax-statistics-tax-bracket/individual-tax-statistics-tax-bracket-2019-edition-2017-tax-year.html

Scroll to bottom of page, download Table 4 in CSV format, open the csv file in Notepad (“tbl04-en”), select all, copy, open Google Sheets, click in a cell, right click paste & in the Paste formatting pop up select Split text to columns. 10 second effort.

Et voilà.

———————-

Stoking the numerical money, affluence by generation flames for poor Garth.

Sorry in advance My Liege (actually, after the fait accompli).

#53 Haas Say Yhoo on 10.19.21 at 4:48 pm

The blog is an interesting piece to say the least. My child who fits very nicely into the GenXers at 48. This child has a value of 1.3 million after the parents me, did without to make sure both my offspring had the best start in life. And for what it is worth, if that means anything, I am not a Baby Boomer. There was nothing booming when I was young and nothing right at this time either. So what are we called, those of us who were born before Baby Boomers? Yes we worked hard and it happens we do not have much to show for all our hard striving and no thanks from said offspring either. So Gens/X are as greedy as greedy gets. So Gen/X, someday you will be all wrinkles even with all your affordable face lifts.

#54 Reality Check on 10.19.21 at 4:49 pm

FHSA limits

Yikes. Is it seriously likely the Liberals will have no limits in annual contributions? Will they let people contribute the full $40K the first year and deduct the full amount from income. And will regular RRSP contributions still be allowed in addition?

If they allow the full amount and it is widely taken up its going to be a huge hit to federal income tax collected from individuals.

#55 Moh on 10.19.21 at 4:53 pm

35 Year Old here!
I ignore all the tripe talk of Gen Z, Boomer blah blah.

I focus on making that money and make the best out of my situation. Rather spending all the energy whining and complaining focus on how you can improve your situation!

Quote that motivates me!

“If your dreams do not scare you, they’re not big enough!”

This land is full of opportunity just saying!

#56 Reality Check on 10.19.21 at 4:54 pm

“Millennials (1981-96) now comprise 21% of the pop but possess”…….100% of glorious youth.

Millennials shouldn’t waste their youth feeling jealous about Boomers and Gen-x wealth. A lot of Boomer/Gen-x are destitute and the ones that are not generally have earned it.

#57 Marvin Greyston on 10.19.21 at 4:57 pm

Watch the video on Paul Kershaw.

Listen to what and how he says what he does. Pay attention to the mannerisms. It appears that he and his friends are constant whiners.

#58 Concerned Citizen on 10.19.21 at 4:59 pm

I’m very disappointed that you would use average rather than median statistics. In this new Gilded Age, wealth is highly concentrated among the few. You ought to well know that, Garth. That is a byproduct of three things: international trade, technology/automation, and central bank money printing.

The median numbers paint a very different picture. The median 30 year old is going to have a much lower standard of living than their parents had. But hey, the boomers got theirs, so at least there’s that…

So many crestfallen Millennials. – Garth

#59 Dolce Vita on 10.19.21 at 5:00 pm

Net worth = Assets-Liabilities. – Garth

——————

A sad day indeed for this Blog when that formula has to be posted.

“The sun, for sorrow, will not show his head. Go hence, to have more talk of these sad things. Some shall be pardoned, and some punishèd.”

#60 Don Guillermo on 10.19.21 at 5:00 pm

Great post NP

#29 Nonplused on 10.19.21 at 4:40 pm
It doesn’t seem that long ago that people used to marvel at the things say my grandfather saw. The Wright flyer first took to the air in 1903, but by the time my grandfather died (at a relatively early age) he had already flown back to Europe non-stop several times.
of change has only accelerated.
_____________________________________
I’ll never forget as a teenager watching the moon landing with my grandfather on a tiny B&W TV. He was quite old even then and just stared in amazement.
——————————————————-
It wasn’t that long ago we were digging in the dirt with our hands and doing rain dances.
*******************************************
Maybe that’s where the great reset wants us again.

#61 David Leigh on 10.19.21 at 5:00 pm

Garth, you really disappoint me with this article. My father bought is first house in 1960 for 10 000, borrowed from his father for the down payment and had pay raise after pay raise for decades. He paid 4 times his income for the place (your number from an article years ago). Today Millennials will pay 15 to 20 income and have not seen a pay raise since 2000 and will likely not see any pay raise going forward (computers taking the jobs). You remind me someone who got rich when times were good and then wants the government to stop anyone else from getting rich because it could affect your little financial empire. Empathy is the true sign of intelligence IMO. I admire you tremendously but come on.

Dude. Not my study. Find better things to be disappointed in. – Garth

#62 yvr_lurker on 10.19.21 at 5:03 pm

The truth lies somewhere in the middle most likely… How about using the median rather than the mean for example, as with using the mean we weight more heavily those relative few who have done super well. There was much less disparity in income/wealth 20–40 years ago, so the median is a better metric…

Depending on one’s political stripes, statistics can be “skewed” and “performance metrics” tailored to support a pre-concieved viewpoint. Don’t much like Kershaw, but would have no trust in a study done by a little (likely biased on the other side) investment house First Trust.

Use the median and then get back to us….

#63 Plus on 10.19.21 at 5:05 pm

Delta PLUS!

Now new and improved.

Featuring more!

No longer are you stuck with just one-sized Delta. Now you can have Delta PLUS!

How does one get Delta PLUS you ask?

Step one: Take a trip to UK.
Step two: Bring back a souvenir.
Step three: Share your souvenir – because sharing is caring.

https://www.theglobeandmail.com/world/article-new-covid-19-mutation-of-delta-variant-under-close-watch-in-uk/

#64 an investor on 10.19.21 at 5:14 pm

Well, maybe Kershaw should tell the millennials to become mechanics and marry a secretary with a pension plan so that they can have an annual household income of over $200K and accumulate massive wealth by the time they’re in their early 30’s like the dude profiled in yesterdays blog who is buying a million dollar home and investing tons of money into his portfolio every year. Pretty good for a Seneca College grad.

When I was young, it was only rock stars and doctors who made the big bucks. Today we learned that GenX are all millionaires because Canada’s RE bubble will never burst and houses will only go up in value contrary to what Swiss Bankers have been telling us. So, what is Kershaw complaining about? Based on what I keep reading on this pathetic blog, it doesn’t sound to me like young people are being financially ravaged.

#65 SoggyShorts on 10.19.21 at 5:16 pm

#38 alexinvestor on 10.19.21 at 4:16 pm
Let’s do some math. Suppose the average Millennial household has 200K. What rate of return and savings would it take to get to 1.1m adjusted for inflation in 16 years ? At 4% + inflation rate, it would take 33K in savings annually increasing at rate of inflation. At 3% + inflation, it would 39K in savings annually. Plus these Millennials also have child care expenses.

GenXer’s got rich off the greatest asset inflation bubble we’ve ever seen. Will this continue ?
************************
Surely a $200K couple (150K after-tax) would have no problem saving far more than that? 50-75K would be a reasonable savings rate IMO.

#66 espressobob on 10.19.21 at 5:23 pm

Boomers, gen X, mills,we all live by the choices we make.

Trust me when I tell you, there are far more important endeavours in life than what’s in ones portfolio…

Don’t live the illusion, when your time comes on the calendar, hopefully that isn’t a moment of clarity?

#67 Dolce Vita on 10.19.21 at 5:24 pm

#56 Plus

Delta PLUS.

What I suspected.

Tweeted Tim Spector from ZOE a few days ago when he was musing why cases on the rise in the UK and I suggested to him that maybe UK Delta* has morphed.

Spector was thinking that UK testing not targeted well enough at those infected and produced a somewhat confusing chart from Our World in Data to wit:

https://twitter.com/timspector/status/1449265930811461638

Whereupon I made the above suggestion along with that the chart seems to defy:

Occam’s Razor

———————-

Recall the UK gave us: α

Not out of the realm of possibility that the UK would improve upon India’s Δ. Mercifully for the World UK gene sequencing prowess is 2nd to none and done daily.

And the UK is above reproach for letting/warning the World about that.

#68 Shawn Allen on 10.19.21 at 5:24 pm

Take CPP Early? Maybe…

Okay, fine Garth’s got me thinking on this one…

Normally the haircut for each year early on CPP is 7.2% per year.

That sounds heft. But in no way shape or form is that really a 7.2% return for waiting because you lose a year of CPP. If you live till age 80 you lose 1/20 or 5% for each year you delay. If you live till age 90 then each year delayed instead 0f taking at 60 costs you 1/30 or 3.3%

Anyhow, normally I would avoid the 36% total haircut for taking early and get 1/0.64 = 56.25% more annually in CPP starting at 65 versus 60. No contest since I plan to live to at least age 90 and to be active at that age.

BUT in my case I stopped contributing at age 55 and in the formula they allow you to drop out the lowest 17% of your potential contributory years. It’s complicated but this formula basically means my amount at age 65 will NOT be 56.25% higher than the amount I could have got at age 60. How much lower than 56.25% is complicated and I have asked CPP to send me the number.

I am a math person and I am optimistic of living long and healthy so I need to see the numbers. But my particular case of not contributing to CPP past age 55 tilts the scale more towards taking CPP early.

So yes, thank you Garth for causing me to look deeper at this.

#69 Eclod on 10.19.21 at 5:26 pm

Hey Dolce,

Since you’re Mr. EU info, do you have a resource to show how these 40K of daily cases in the UK break out…like they report here? You know, how many unvaccinated, vaccinated, etc. Seems to be thin on info here.

#70 Speed Weasel on 10.19.21 at 5:28 pm

#19 Another Deckchair on 10.19.21 at 3:29 pm

Yes! I am scratching my head too! I am early 50s, and have a similar home situation as you (modest townhome, one KIA, several nice bicycles, no debt). The swanky new development just behind my house is full of 30-somethings who park a pair of shiny German / Japanese vehicles outside their $1.5M singles/duplexes. How do they make all those payments? These places are nice and all, but there’s no way I’d take on that much debt to upgrade. It’s a different mentality: I could afford more bling I suppose, but I’ve been such a good little beaver all these years that I can’t bring myself to splurge.

#71 Do we have all the facts on 10.19.21 at 5:31 pm

Baby boomers born between 1946 and 1964.

Generation X born between 1965 and 1980

Millennials or Generation Y born between 1981 and 1996

Have a peek at GDP growth in Canada and the US between 1967 and 2007 and GDP growth between 2008 and 2020.

You do not have to be a genius to see where the trend is going. The Canadian economy has been slowing down and average growth in our GDP since 2008 is less than 2.0% per annum.

The working years of my generation (the so called boomers) covered a period where average annual growth of Canadian GDP often exceeded 5.0% per annum and fell below 2.5% only once in 30 years

I am not sure what the future holds for Generation Y or Generation Z but it seems probable that the salad days have come to an end. We are facing very strong economic competition on all fronts and our major trading partner is over $28 trillion in debt.

Average annual increase in GDP growth in the US since 2008 has fallen below 2.5% per annum. GDP growth in the US has not exceeded 5.0% per annum since 1984. The US economy may show signs of recovering but it would appear that the rate of economic growth is slowing down.

My point is that comparing the rate of wealth generation in the past to the rate of wealth generation today serves no real purpose.

The average Canadian worker has borrowed over 170% of their current annual income. That my friends is not a positive sign of economic growth.

Our current governments commitment to substantially increasing this ratio of debt to income is beyond disturbing. We need an intervention!

#72 PBrasseur on 10.19.21 at 5:32 pm

Welfare states are broke, unsustainable, they need a quarter million plus immigrants a year to generate enough nominal growth to stay afloat. They need debt, money printing and massive real estate bubbles.

Pretty soon it all won’t be enough.

Those millennials won’t know what hit them…

#73 Nonplused on 10.19.21 at 5:34 pm

#4 Sail Away on 10.19.21 at 2:47 pm

“It sure would be nice to get a $5k grant toward a new furnace and help make climate happen. Because carbon.”

You had best check the fine print.

#74 Dolce Vita on 10.19.21 at 5:34 pm

crestfallen

— Garth

———–

Darn how I missed that word.

Yet again, queue Romeo and Juliet, Act 5, Scene 3.

Where the “punishèd” today reads you Garth.

#75 Dolce Vita on 10.19.21 at 5:39 pm

#69 Eclod

Overview:

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

Under Daily Update on the LHS, click to obtain the info you desire.

If planning to travel to London or some other UK location, click on “Interactive Maps” again on the LHS of the Overview page where you can zoom in to nearly a block by block summary of Cases/100K.

#76 Editrix on 10.19.21 at 5:46 pm

Re: 19 Another Deckchair on 10.19.21 at 3:29 pm

This is weird.

As a member of the oldsters on the block (very early 60s) we have an old early ’50s bungalow, one car, two bikes, and have had zero debt for a long time.

The houses around here – the small ones get removed and replaced with a three story monstrosity, or the house gets “supersized” with another floor and an extension out the back. Yup, there are at least 2 cars out in front, and often a motorcycle or equivalent to show off with. The garage is stuffed with “stuff”. New builds – the bungalow replacements, go for upwards of 3 mil.

What’s wrong with a small house, with a small yard, and no garage? It worked for their parents and grandparents, it worked for us, why will it not work now?

I’d love to have one of these 3 million dollar houses, but can’t afford it. How can the kids afford them? Is it marketing pushing this stuff?

Signed – Confused
——————————————————-

Yeah, I don’t understand why people today have to live in homes with five bedrooms and seven bathrooms and three car garages when in the 60s families of seven were living in three bedroom Toronto semis. Meeting the two half way makes better sense. (I sure wouldn’t want to have to clean a five bedroom house, especially if I was so leveraged that I couldn’t afford a cleaning service.)

#77 Cheese on 10.19.21 at 5:50 pm

What astounds me, is that this Housing-TFSA is getting implemented at all. They could have simply raised the regular TFSA limit to 40k and everyone could use it for whatever they need, fair and equitable.

As someone who just turned 40 this year, I am very put out…

I will not be voting liberal ever if this abomination comes to pass, that is certain.

#78 Nonplused on 10.19.21 at 5:52 pm

#7 SunShowers on 10.19.21 at 3:00 pm
“growing the whole pie”

As multiple studies have shown, “growing the whole pie” is largely useless because of the way the pie itself is divided.

Millennials vs Boomers is a distraction. It’s always been the 99% vs the 1%. Increasing the size of the pie does nothing for most people when 90% of that gain is going to the richest 1%, no matter the age of that 1%.

—————————————

Again, with economics it is all what you measure and how. You and your studies are confusing inches and liters. Capital is not money. It can’t be distributed.

#79 yvr_lurker on 10.19.21 at 5:53 pm

#58
The median numbers paint a very different picture. The median 30 year old is going to have a much lower standard of living than their parents had. But hey, the boomers got theirs, so at least there’s that…
———————
Exactly my sentiment. Using the median would provide clarity. However, my bet is that First Trust would not be so interested in using that metric.

In any reliable quantitative study with data, one needs to prove that using other statistical criteria do not substantially impact the qualitative result, i.e. the conclusion must be in some sense “robust” with respect to the metrics used. However, when probably 50% of the population have no idea what the difference between the mean and median are, or can even highlight the qualitative reason why the outcomes might be much different (in this case much greater wealth disparity over the past 20 years), the First Trust study can easily obfuscate….

That is not to say that I think Kershaw’s is not a blowhard and his inspired under 40 housing incentive a dumb idea.

Where is the suggestion box for me to write to First Trust people to redo their study with the median?

#80 Concerned Citizen on 10.19.21 at 5:56 pm

So many crestfallen Millennials. – Garth

*****

And, dare I say it, so many boomers not acquainted with the facts:

https://www.cnbc.com/select/average-net-worth-by-age/

This article summarizes Fed 2019 data. A key data point: 35-44 median net worth $91,300, average $436,200. To focus on the average rather than the median is willful ignorance of reality. I expect the average and median have separated even further since then with the Fed and other central banks further inflating the everything bubble for already rich/well off people during the pandemic.

People don’t understand the disaster that is the modern economy for young people. Perhaps because they don’t want to believe they have heaped such a pile of crap upon them. Ignorance is bliss, as they say.

#81 Don Guillermo on 10.19.21 at 6:00 pm

Faron on 10.19.21 at 4:04 pm
#22 Don Guillermo on 10.19.21 at 3:34 pm

#146 James on 10.19.21 at 11:19 am

Porsche – “More than 70% of all cars made since 1948 are still on the road today” says the Norway Classic Center.

https://www.autovinogroup.com/sooner-porsche.html

Porsche’s have a timeless design that makes people want to preserve them. I think that’s a different convo..
*****
True, you’re referring to the 911. In recent years they’ve also done very well in reliability ratings. Especially if you look in the sports car class. Mean Green Machines!

#82 Nonplused on 10.19.21 at 6:10 pm

#37 Faron on 10.19.21 at 4:07 pm
#24 XGRO and chill on 10.19.21 at 3:45 pm

https://www.washingtonpost.com/business/2019/12/03/precariousness-modern-young-adulthood-one-chart/

Looking forward to Nonplused chiming in to explain to us his ideas about mark-to-market “wealth” etc. etc. Of course, he will completely and conveniently fail to acknowledge that wealth can be borrowed against to give a low apparent income and a lavish lifestyle.

————————————–

Sure, you can borrow against “wealth” to support a lavish lifestyle, but then the “net wealth” goes down.

This chart is practically useless. GenX and the millennials are not that far apart where they stop plotting the millennials, and they don’t plot the boomers at that age (although the trend would say still higher than GenX but at a lot less than where the line starts).

I don’t like graphs that exclude inconvenient data.

Of course people have more money as they get older. Who didn’t know this?

So let me get this straight; we are going to burn down the barn because GenX had 3% more of the pie at age 32 than the millennials did? And when the boomers start to die, where do we think their wealth is going to end up if not with GenX and the millennials? Where do we think their wealth came from, if not in large part from their parents when they died?

#83 Dogman01 on 10.19.21 at 6:13 pm

“Statistics are like a bikini. What they reveal may be interesting, but what they conceal is vital!”

#14 crowdedelevatorfartz on 10.19.21 at 3:18 pm

Australia China etc.

Good Analysis.
https://www.youtube.com/watch?v=aOpQRke_ZoI

Due to China’s change of course over the last five years, Australia has decided they need to deter an aggressive China, rather than remain on a middle path.

With the French subs they were signalling to China they were concerned only with Local Defense of Austria, the switch to US Nuclear Reactors installed in their Subs they realize China need to be deterred. Australia’s Navy will be a formidable Power Projection component of the US Navy.

Canada – well I think it is 50\50 that Trudeau may side with our Canadian Plutocrats never ending wet-dream of access to China. The Huawei decision will show which way we are going. Either kowtow to an evil Totalitarian Dictatorship or remain an Auxiliary of the USA. As Trudeau is French (contempt of the Gaul
for the American) and “Respect’s the Basic Dictatorship” of China, he actually could try for the catastrophic “middle course” and screw up Canada for a century.

#84 Annek on 10.19.21 at 6:21 pm

Young Boomer reply: When I was growing up, everyone had a small house, usually a three bedroom bungalow in suburbia, one car and no air conditioning.
We had one phone per household, a land line, one TV. We took transit. We rarely went to restaurants . My first eating out when I was a teen was the food court at Sherway Gardens in Toronto.
We bought what we could afford and did not take out loans.
Today’s homes are huge monster homes, two to three cars per home, multiple phones and toys. People eat out all the time. No one buys outright but borrows money to own something, anything or uses credit and racks out huge bills.
So if you want to compare, make sure you understand that the boomer generation was more frugal with their way of life than people today. Being more frugal have allowed more savings and possibly net wealth. But not without sacrifices. I do not think younger generations are making the same sacrifices today as we did then.

#85 George S on 10.19.21 at 6:24 pm

#22 Don Guillermo on 10.19.21 at 3:34 pm
wrote ………..
Porsche – “More than 70% of all cars made since 1948 are still on the road today” says the Norway Classic Center.

https://www.autovinogroup.com/sooner-porsche.html

————————

That may well be true but that type of car is not meant for general everyday use. I doubt you see very many of them on the road in the winter, let alone out on a lake ice fishing. I suspect most Porsche owners coddle their car a lot more than Toyota Corolla owners.

—————–
#68 Shawn Allen was writing about CPP. We learned in our pre-retirement course that the age you have to live to in order to benefit from waiting to age 65 before you take CPP is 78.
The other issue is that taking CPP at age 60 may make it so that you can retire earlier with an enhanced income rather than waiting until 65 to retire. A lot of things can happen health wise from age 60 to 65 that may limit your enjoyment of your retirement.

#86 slava on 10.19.21 at 6:31 pm

@ leftover
Today that house is worth $1,750,000 or so. A millennial household making $200k (common) clears about $145k or $12,000 a month.

It is more like 10400 per month

#87 Ponzius Pilatus on 10.19.21 at 6:34 pm

Beautiful couple of days in the Lower Mainland.
Don’t you just love the beautiful leafy trees, all dressed in yellow and red.
No need to go to the East Coast anymore.
Just love the Seasons.
And now, let’s go out and rake the leaves, a good exercise for the old core muscles.
Next on the agenda, put in some bulbs, for beautiful daffodils and tulips for bright spring colours.

#88 Wrk.dover on 10.19.21 at 6:35 pm

Everybody here seems to want to be as rich as the character “Arthur”, in the movie played by Dudley Moore.

I just learned that if you drink like Arthur too, you are supposed to invest in some vitamin B1.

Oops.

#89 Smartalox on 10.19.21 at 6:38 pm

As Gen X, I am happy to report that I am a lot closer to the Gen X average today then I was to the Gen X average at 32, (adjusted for inflation).

When I was 32, my net worth was nowhere near $158k, mostly because of lingering student loan and consumer debt. I was paying it off, and even saving a bunch, but I was still several thousand away from breaking even, in total, about $100k below average.

Today, at 47, I’m still a bit below the GenX average, but not nearly as much as I was before, and am firmly on track for when I hit my boomer-age years.

You can catch up. The greatest obstacle to wealth is not low incomes, but high debts.

#90 Rain coast on 10.19.21 at 6:41 pm

Inflation without housing costs (i.e. CPI) is a pretty useless metric when comparing net worth between generations to compare for the ability to buy houses. What is the comparison with housing prices included? How many years did it take for a boomer or gen x to pay for a house when they were 32?

#91 Leftover on 10.19.21 at 6:42 pm

#39 Ryan Diebel on 10.19.21 at 4:20 pm

#23- millenial couples make 200K ? nice to know you are in touch with reality.
—————————————————–

Of course they don’t all make $200k, but a teacher makes about $80k to $90k and an electrician over $100k, so not that much of a stretch as long as you’re educated/skilled. There are lots of couples that make less, and plenty that make much more.

Back in the day $70k was a decent income for two people, similar jobs to the ones above.

#92 Stone on 10.19.21 at 6:43 pm

#61 David Leigh on 10.19.21 at 5:00 pm
Garth, you really disappoint me with this article. My father bought is first house in 1960 for 10 000, borrowed from his father for the down payment and had pay raise after pay raise for decades. He paid 4 times his income for the place (your number from an article years ago). Today Millennials will pay 15 to 20 income and have not seen a pay raise since 2000 and will likely not see any pay raise going forward (computers taking the jobs). You remind me someone who got rich when times were good and then wants the government to stop anyone else from getting rich because it could affect your little financial empire. Empathy is the true sign of intelligence IMO. I admire you tremendously but come on.

Dude. Not my study. Find better things to be disappointed in. – Garth

———

Hey David, there are opportunities/good times abounding yesterday, today, and tomorrow. You just need to open up your eyes and make a grab for them.

On the other hand, if your attitude stinks, well then, you stink.

By the way, my B&D portfolio is sitting at 19.89% YTD. That’s 19.89% YTD in 2021, not 1960. Rub tummy! Feels like good times/opportunities to me today.

#93 Ponzius Pilatus on 10.19.21 at 6:44 pm

75 Dolce Vita on 10.19.21 at 5:39 pm
#69 Eclod

Overview:

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

Under Daily Update on the LHS, click to obtain the info you desire.

If planning to travel to London or some other UK location, click on “Interactive Maps” again on the LHS of the Overview page where you can zoom in to nearly a block by block summary of Cases/100K.
—————-
Jeez,
Another guy who’s too lazy to do a little research by himself.
Learn how to use the internet to find the info you need.

#94 Sail Away on 10.19.21 at 6:55 pm

#73 Nonplused on 10.19.21 at 5:34 pm
#4 Sail Away on 10.19.21 at 2:47 pm

“It sure would be nice to get a $5k grant toward a new furnace and help make climate happen. Because carbon.”

——-

You had best check the fine print.

——-

It looks like heat pumps are on the list and our existing oil furnace is 25+ years old, so we shall see… I’ll give updates.

#95 Lawless on 10.19.21 at 7:01 pm

Kind of ignoring your biggest theme, which is the unprecedented rise in housing prices that the older generations (GenX & boomers) have benefited from. Property prices have doubled over the last decade – with the proceeds of same being untaxed for primary residences. So in my city (the smoke) that’s often close to a million these days. An alternative might be to tax those gains, but that’s not popular. So they elect to try to even the playing field. I do agree that it shouldn’t be restricted to <40s. Point being, what boomers had 30 years ago is a bit of a false comparator, given that younger folks cannot expect this type of property appreciation to happen in their lives. And they also can’t afford to buy homes now, so likely adversely impacted over their lives due to affordability of housing. Combine that with higher cost of education, heightened education requirements for entry level jobs, later start to careers, and greater debt burdens, you try telling me that the younger generations will do as well as their parents. I’m not buying it. That said, I’m doing just fine as an Xennial, but I recognize that I’m the exception.

#96 Sail Away on 10.19.21 at 7:03 pm

#92 Stone on 10.19.21 at 6:43 pm

By the way, my B&D portfolio is sitting at 19.89% YTD. That’s 19.89% YTD in 2021, not 1960. Rub tummy! Feels like good times/opportunities to me today.

——-

That is very odd. I track the Stone portfolio you shared here at right around 14.93% YTD, including dividends. Two of the six holdings are actually negative for the year: VSB -2.45% and XEC -0.49%.

…or are you going on again about some secret sauce portfolio that you have never revealed?

#97 crowdedelevatorfartz on 10.19.21 at 7:06 pm

@#83 Dogman01
“The Huawei decision will show which way we are going.”

++++

I can’t see it happening.
The daughter of Huawei’s owner was Meng.
The cause of all the “Extradition/hostage” drama.

The US won’t be too happy with any of it’s Allie’s in Nato embracing Huawei technology.
We’re the US biggest trading partner.
If Trudeau is stupid enough to go with Huawei , watch the Canadian economy dry to dust.

But, never underestimate an intellectually stunted politician with delusions of his own brilliance….. to do the wrong thing.

#98 Nonplused on 10.19.21 at 7:07 pm

Also an addendum to #82 that I am sure Faron and Sunshowers can skip do to lack of interest.

Borrowing against wealth does not reduce taxes. It may defer them, but that is all.

Sooner or later the loan has to be repaid, and that has to be done out of income, which means the money gets taxed.

Let’s say Bezos borrows $500,000,000 to buy a yacht. He can do that. But he has to make the payments. Can he just borrow more to make the payments? Yes. But at some point, to pay off the loan or make the payments, he either has to sell shares to raise money or pay himself. Both are taxable events.

The situation is really no different than you borrowing money to buy a car rather than paying cash. In fact you might pay more taxes because you have to pay tax on the money you use to pay interest, rather than say putting it in your RRSP.

I’m starting to think they hand out Ph.D’s rather willy-nilly these days.

——————————————

Also note that this near useless graph does not show what happened to the wealth the generation before the boomers had. Know why? After peaking at very high it trended to zero? Know why? Dead people don’t own things, and the boomers inherited it all. Guess what’s going to happen when the boomers die? Their share of the pie will trend to zero, while GenX and the millennials see a large increase.

So you disenfranchised millennials, you know what to do. (No not that! Wait. I meant wait. Put the knife away and just be patient. Dang there are way to many bad movies these days.)

#99 A Dollar is a Dollar is a Dollar on 10.19.21 at 7:08 pm

Using ‘average’ calculations really distorts the truth of the wealth disparity.

John Avlon on CNN summarized it clearly on September 19.

https://twitter.com/JohnAvlon?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

How is the wealth gap destroying democracy?

Based on recent data:

The top .1% had incomes of $2.8 million

The top 5% had incomes of $320,000

+ then…..

The “bottom” 90% (NINETY PER CENT!) only had incomes of $38,000

The wealthier and the very rich have grown much richer, for decades.

And the wealthiest paid LESS in marginal tax rate than the “bottom” 90% in 2018!

Canada is close behind on this bizarre pathway.

Can we really afford to keep voting for this post-Reagan ideological fraud?

At what cost, to our society, to the planet, to our future?

This must be addressed. Best would be a very CONSERVATIVE solution, like Dwight Eisenhower would
implement.

Remember Dwight? The Republican dude who won the war, then ushered in the greatest economic boom of the middle class in history? With 90%+ tax rates on the wealthiest?

Yup, that’s what works, that’s what we need.

No special categories like capital gains or stock options. Offshore havens must be shut down. Transaction taxes on all money transfers.

Wait and see. The Covid-debt aftermath and the environmental time bomb, plus reconciliation with First Nations will make all of this necessary. The clock is ticking.

#100 crowdedelevatorfartz on 10.19.21 at 7:09 pm

@#91 Leftover
“Of course they don’t all make $200k, but a teacher makes about $80k to $90k and an electrician over $100k, ”

+++

I don’t pay attention to how much someone earns as much as I watch how they blow it.

I know doctors who are bankrupt.
It’s almost as if ego and financial acumen are inversely proportionate.

#101 Sail Away on 10.19.21 at 7:12 pm

#87 Ponzius Pilatus on 10.19.21 at 6:34 pm

Next on the agenda, put in some bulbs, for beautiful daffodils and tulips for bright spring colours.

——-

Yes, it is bulb time. We plant around 500/year and now have thousands of crocuses, daffodils, and tulips in the boulevard, although deer quickly eat the tulips.

Here’s a tip to stop deer rubbing their antlers on trees and bushes: drive or zip-tie a 4′ long rebar next to the trunk. Deer don’t like touching rebar with their antlers.

#102 Ponzius Pilatus on 10.19.21 at 7:21 pm

#83 Dogman01 on 10.19.21 at 6:13 pm
“Statistics are like a bikini. What they reveal may be interesting, but what they conceal is vital!”

#14 crowdedelevatorfartz on 10.19.21 at 3:18 pm

Australia China etc.

Good Analysis.
https://www.youtube.com/watch?v=aOpQRke_ZoI

Due to China’s change of course over the last five years, Australia has decided they need to deter an aggressive China, rather than remain on a middle path.

With the French subs they were signalling to China they were concerned only with Local Defense of Austria, the switch to US Nuclear Reactors installed in their Subs they realize China need to be deterred. Australia’s Navy will be a formidable Power Projection component of the US Navy.
—————-
Haha,
Little Austria taking on the Chinese.
Seriously, because of “Mutual Assured Destruction” I don’t think that XI(She) will resort to nuclear weapons.
He has a lovely wife, and I think he does not fancy to live out his life in a bunker.
He may just let the North Koreans launch a few “baby rockets” toward the States, just to scare them (and us Canadians on the West Coast).
More likely it will be some kind of old fashioned Mano a Mano war.
Good reason to brush up on your Mandarin, in case they need translators.
BTW, just read that the latest Chinese made War propaganda movie outsold the new Bond movie by quite a margin.
As if Hollywood hadn’t enough troubles already.

#103 Dazed and Confuscious on 10.19.21 at 7:22 pm

#19 Another Deckchair on 10.19.21 at 3:29 pm

This is weird.

As a member of the oldsters on the block (very early 60s) we have an old early ’50s bungalow, one car, two bikes, and have had zero debt for a long time.

The houses around here – the small ones get removed and replaced with a three story monstrosity, or the house gets “supersized” with another floor and an extension out the back. Yup, there are at least 2 cars out in front, and often a motorcycle or equivalent to show off with. The garage is stuffed with “stuff”. New builds – the bungalow replacements, go for upwards of 3 mil.

What’s wrong with a small house, with a small yard, and no garage? It worked for their parents and grandparents, it worked for us, why will it not work now?

I’d love to have one of these 3 million dollar houses, but can’t afford it. How can the kids afford them? Is it marketing pushing this stuff?

Signed – Confused

________________________________________________

Is it any wonder you are confused? You obviously aren’t following the number one rule of investing!

#1 Never, ever own a house that is older than you. In fact, your house should be even younger than your mistress! You do have one, right?

#104 Brad on 10.19.21 at 7:45 pm

#33 calgary rip off

How do you have a ton of RRSPs? You dont buy RRSPs lol.

#105 Steven Rowlandson on 10.19.21 at 7:45 pm

the frustration is likely experienced by any who work, save and get screwed over.

#106 Barb on 10.19.21 at 7:47 pm

#84 Annek on 10.19.21 at 6:21 pm

Exactly! “We had one phone per household, a land line, one TV. We took transit. We rarely went to restaurants . My first eating out when I was a teen was the food court at Sherway Gardens in Toronto.
We bought what we could afford and did not take out loans.”

Learned from my parents to never buy anything we couldn’t afford. Saving up for furniture etc. Small house, a veg garden out back, and we were happy. The really important thing was to NOT EVER envy anyone.

Hubs and I have been on our 15 acre property for 46 years, paid off many years ago. Never a penny owing on plastic card (yes, only one card!).

I have yet to meet a millenial who was frugal. Rare obviously because of “instant gratification”?

#107 Quintilian on 10.19.21 at 7:51 pm

The 40k tax give away, vote buy, will be offset by a one-month price appreciation.

A nothing burger.

It’s all window dressing.

The end result will be the same.
Tick Tock, Tick Tock

#108 Yorkville renter on 10.19.21 at 7:52 pm

when the majority of the population is poorly informed and financially illiterate, you can’t expect much else.

#109 Plus on 10.19.21 at 7:57 pm

#67 Dolce Vita

Dolce,

Maybe it’s all about branding?

Remember that July 28th study out of Japan talking about Lambda being able to disarm all vaccine immunity?

#110 Wrong on 10.19.21 at 8:08 pm

Definitely wrong to use mean instead of median, but probably they don’t have all the data.
I am a millennial. And while i hate what is happening to house prices now, and hope prices will stop growing, i think there are two things millennials do wrong and different than the boomers: they spend too much money on stuff they don’t need, and they stay in school for too long. Getting degrees over degrees but in the end missing out on income. I am guilty of that, and i see it among my colleagues too.
But definitely the neighborhoods where boomer teachers and hairdressers used to live in are now only available to millennial doctors and lawyers. And the urban sprawl they are building is garbage. Garbage quality far from everything. They used to build better neighborhoods back in the day. But it is what it is …

#111 GenX Proof on 10.19.21 at 8:24 pm

This article is fairly accurate and as a GenXer you damn rights I am better off than the boomer cohort and millennial are broke. But they will soon get their cake with inheritances and a big wealth transfer.

Don’t worry you big babies. Smart families will transfer this wealth down.

We GenXers have been getting big inheritances and living in nice houses – flying under the radar for quite awhile. That is until Garth just exposed us a bit here.

PK is a generational (not so smart) person addicted to his big UBC pay cheque and proposing things that will inflate assets in his own backyard even more.

Vancouver is finished. Quite complaining and move somewhere else. Oh yeah, that big UBC pay cheque is holding you hostage.

So, why am I not celebrating PKs push since this adds to my net worth? Because it is setting Canada up for an epic pull back and/or downright crash.

So, to hedge this I will be cashing out soon and moving to yet another more affordable bill free area. Free and clear is a good way to live.

PK needs to start looking at supply and demand factors and start questioning why most people have 4 mortgages and why everyone from the banks to the politicians are encouraging this.

#112 willworkforpickles on 10.19.21 at 8:31 pm

North Americans…get ready to live the rest of your lives in the next 6 or 7 years.

#113 yvr_lurker on 10.19.21 at 8:57 pm

#111
We GenXers have been getting big inheritances and living in nice houses – flying under the radar for quite awhile. That is until Garth just exposed us a bit here.

PK is a generational (not so smart) person addicted to his big UBC pay cheque and proposing things that will inflate assets in his own backyard even more.

Vancouver is finished. Quite complaining and move somewhere else. Oh yeah, that big UBC pay cheque is holding you hostage.

So, why am I not celebrating PKs push since this adds to my net worth? Because it is setting Canada up for an epic pull back and/or downright crash.

So, to hedge this I will be cashing out soon and moving to yet another more affordable bill free area. Free and clear is a good way to live.
——–

Fantastic post (sarcastic). We (all generations) are all in it together to solve the problems of the day and to give a hoot about the next generation. Well articulated, and honest.

For me, I have less empathy on those who are retired and demanding free pharmacare because they did not save squat over the past 50 years where great gains could be had (real estate, saving etc..). If they demand more, tough luck and the bottom of the queue. I would much rather mitigate child poverty and help the ones starting out (child transfer credits have zero problem with). Indeed, my bias.

#114 Faron on 10.19.21 at 8:58 pm

#82 Nonplused on 10.19.21 at 6:10 pm

#37 Faron on 10.19.21 at 4:07 pm
#24 XGRO and chill on 10.19.21 at 3:45 pm

Wow, NP, you never fail to disappoint. I’m embarrassed for you that you didn’t grasp the chart. At all. Not going to waste my time explaining it to you. Simply put, it shows that, adjusted for age successive generations are doing worse for the simple reasons that since the 1980’s, the mechanisms for compounding wealth have been more and more difficult to access due to higher COLA and higher asset prices.

#98 Nonplused on 10.19.21 at 7:07 pm

Let’s say Bezos borrows $500,000,000 to buy a yacht. He can do that. But he has to make the payments. Can he just borrow more to make the payments? Yes. But at some point, to pay off the loan or make the payments, he either has to sell shares to raise money or pay himself. Both are taxable events.

OMG dude. First, the tax difference between taking a $1,000,000 salary and paying cap gains on $1,000,000 worth of stock sales is huge. the cap gains rate in the US is 20%.

Second, Bezos holds lets say $100 billion in stock. if his annual expenses are 5 million, he has enough collateral to borrow against for 20 thousand years! Even if the bank asks for 50% margin on the collateral, that’s still 10 thousand years. And that assumes Amazon’s stock fails to appreciate. If Amazon lost 90% of its value, that’s still 100 years. do you get it?

Finally, the opportunity cost in cashing out on his death bed is zero, so why not wait. And when he does, his tax rate will be far far smaller than what anyone would be paid in income. It’s a tax giveaway.

Certainly no one has ever handed out a PhD to you.

#115 Faron on 10.19.21 at 9:00 pm

Garth:

Maybe the squeeze isn’t between generations, but betwixt those who are carving out careers, investing, and building, and those who moan. Just a theory.

For someone who is highly defensive about ageism, that’s pretty ageist. You need to get in better touch with the younger generations. They are hungry for success. The idea that younger people are just moaners is non-productive and a shameful stance to take

There is no reference to age in that statement. – Garth

#116 TurnerNation on 10.19.21 at 9:00 pm

Economic Shutdowns: – New Brunswick – Lockdowns. The New System folks. Cases = Power. Areas are zoned…like War Zones. In this WW3.

https://www2.gnb.ca/content/gnb/en/corporate/promo/covid-19/news/news_release.2021.10.0731.html
“Circuit breaker in areas with high transmission now in effect
Due to the high number of COVID-19 transmissions, a 14-day circuit breaker went into effect at 6 p.m. on Friday, Oct. 8, for certain areas of the province.
These areas are Zone 1 (Moncton region) as far north as and including Sainte-Anne-de-Kent and including Havelock in Zone 2; the northern portion of Zone 3 from and including Deerville and Florenceville-Bristol; and all of Zone 4 (Edmundston region), including Menneval in Zone 5.”


— Ireland promised to drop “all restrictions” on Friday but changed their minds 3 days beforehand. (dublinlive.ie)


-QC: Fool me once….since when is unlimited power linked to health? (As them about “hospital capacity”)

“Quebec Premier François Legault said the provincewide state of emergency order that gives the government special powers will be lifted once kids aged five to 11 are vaccinated. That means the order will be lifted in early 2022 (cbc.ca)



More on the Kanadian Economic Shutdowns.

https://windsorstar.com/news/local-news/windsor-autoworkers-protest-new-vaccine-requirements
“Windsor autoworkers protest new vaccine requirements”

#117 cramar on 10.19.21 at 9:00 pm

The average GenX in the U.S. at 48 is worth $1.1 million!? What’s it like in Canada? Sheesh!

What the youngsters don’t realize is that building wealth takes time. It is called “compounding” and is what gave Warren Buffett his vast wealth over time—net worth at 21=$100k; net worth at 91=$100B. He said, “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” What he meant by lucky genes is a long life. The longer you are alive the wealthier you become.

The generations have more wealth as time goes on because wealth multiplies over time. It is grade-school math youngsters. If you want more wealth keep accumulating it over time and when you retire you are the richest generation. The trouble is youngsters want everything right now and are unwilling to pay the price of patience and persistence over time. Stop whining and get on with life.

#118 Armpit on 10.19.21 at 9:04 pm

“Interestingly, a recent US central bank study found Boomers have 51% of all net worth but make up only 21% of the population. GenX (both 1965-80) owns 28%. Millennials (1981-96) now comprise 21% of the pop but possess only 6% of total assets.”
————–
I wonder if the total wealth of each generation , divided by the sum of everyone’s age in that generation would have the same results.

As Mike & the Mechanics sang,

Every generation
Blames the one before
And all of their frustrations
Come beating on your door

#119 Left GTA on 10.19.21 at 9:08 pm

It for sure has to do with spending habits. I grew up wearing second hand clothes we had one car only my Dad worked till we were teenagers and pop and kfc was a big treat. We had veggies from our garden and our own jam and pickled goods we made. Times are very different. We did odd jobs at 12 to pay for anything we wanted. 10 year old kids today have $1200 phones paid for by mommy. The spending is ridiculous.

#120 Dr V on 10.19.21 at 9:17 pm

80 Concerned

5. The number 5. Take the first column, and multiply by the number 5. Notice anything?

The typical (median) person in any cohort, has only about 1/5 of the average for that cohort. So it seems the chance to be “average” is much the same at any age.

Notice anything else? The highest increase in median/average is between the <35 and the 35-44 cohort. Amazing. it doesnt seem you acquire much until you have been established in your career and life. Who
would have thought that?

But look! Something strange. The increases in med/ave
lessen as you move up the age cohorts. Not what you might expect from boomers having all that wealth at such a young age and enjoying continued appreciation of assets.

I was below median at 30, but now somewhere around average.

#121 Ponzius Pilatus on 10.19.21 at 9:17 pm

Two progressive Mayors voted in in Calgary and Edmonton.
Donny G. You coming back?

#122 crowdedelevatorfartz on 10.19.21 at 9:21 pm

@#102 Ponzie’s Periscope
“Little Austria taking on the Chinese.”

+++++

Yeah.
I was surprised that Austria had a Navy full of subs as well.
Must be the Germanic heritage.

#123 DON on 10.19.21 at 9:24 pm

Do we have all the facts
“The working years of my generation (the so called boomers) covered a period where average annual growth of Canadian GDP often exceeded 5.0% per annum and fell below 2.5% only once in 30 years”

******

Was reading an article stating the Bank of England has been around since 1694 and in 314 years rates were never below 2% as they are now.

#124 the Jaguar on 10.19.21 at 9:24 pm

“The average GenX is 48 years old and has net worth of $1.108 million.” GT +++

Indeed. This is where the real action can be found. Not just because of their place at the table of wealth, somewhat aided by Boomer parents who have helped pave the way with various tax avoidance strategies, lending a hand with down payments when such things were peewee by todays requirements, etc., and most importantly providing the ‘role model’ for the game of life. ” Don’t look back to see whay’s gaining on you, don’t play the blame game, work hard, don’t be a whiner, etc”. All passed down from the Boomers.
(P.S. – why haven’t Shawn, Doug or Sinan done a piece on probate taxes, etc. ?)

These GenX babies have blossomed. The reason is that notwithstanding the occasional ‘Throwback Millennial’, they are the ‘Last of the Mohicans’. The last of those who were taught to ‘do for themselves”. Taught that old chestnut that “The most important thing in the Olympic Games is not to win but to take part, just as the most important thing in life is not the triumph but the struggle.” And success comes in many forms, not just financial wealth, though it’s a pretty good bed to lie in every night.

Just ask Dharma Bum. Better yet, ask his kid who I think still makes his home out here in Alberta. That generation did what they needed to do to get ahead, including coming out to the hinterlands like Alberta where Jaguar’s guard the perimeter and defend the province like a junkyard dog.

After that the helicopter moms, play dates and structured everything took over. I don’t need to detail it, many have done an excellent job in the past, and ‘be part of the change or be run over by it’ makes a regular appearance as a reminder.

GenX is locked and loaded. Licensed to kill. Don’t shake my tree, that’s just the way it’s come down. They’ll be holding the bag over the head of the Millennials for some time to come.

The Boomers won’t be feeling the heat much longer once daylight breaks on this story.

That short haired German Pointer Levi is a beaut. They are serious customers. Very Genx-like. Isn’t Billy Bob GenX? I rest my case.

#125 RoadTar on 10.19.21 at 9:31 pm

Garth the last sentence of your post today caputures what so many of us feel is your true philosophy as it pertains to an individuals economic success in life. You must have at least in your formative years been a deciple of Ayn Rand.

#126 Dolce Vita on 10.19.21 at 9:34 pm

#109 Plus

Good point. Thought about that though.

Lambda got its butt outcompeted by Delta due to transmissibility and high viral load.

This Delta PLUS is concerning for 1 reason only and that it is more transmissible than Delta, about 10% more is what I read *:

https://www.bbc.com/news/health-58965650

I’m hoping it has no other tricks up its sleeve other than that (e.g., antigenic escape which means back to the vax drawing board).

———————–

You have to love “hedge your bets” BBC with this sentence:

“Tests are under way to understand how much of a threat it may pose.”

immediately followed by:

“Experts say it is unlikely to take off in a big way or escape current vaccines.”

Mutually exclusive but hey, no complaints about BBC letting us all know what’s going on even if they’re not so sure themselves.

#127 Habitt on 10.19.21 at 9:37 pm

For those of us here whining how hard done by we are,
15 thousand children under the age of 5 die every day. Navel gazers. Think on that.

#128 Turbo on 10.19.21 at 9:38 pm

DELETED

#129 Don Guillermo on 10.19.21 at 9:42 pm

#30 Millennial Realist on 10.19.21 at 3:56 pm
Average numbers are heavily distorted by the ultra wealthy, so should be taken with a grain of salt.

Boomers, you were born on third base.

You did not hit a triple.

Be part of the change.

Or be run over by it.
++±++++
When I was 19 I bunted, barely made it to first with a bruised elbow and a skinned nose. Proceeded to steal 2 bases and voila, sitting on 3rd. Easy peasy. Give it a try Millenial Sadsack

#130 mike from mtl on 10.19.21 at 9:42 pm

#114 Faron on 10.19.21 at 8:58 pm

…OMG dude. First, the tax difference between taking a $1,000,000 salary and paying cap gains on $1,000,000 worth of stock sales is huge.
//////////////////////////////////////////////////////////////

For sure, the only ‘idiots’ are the ones taking full salary pay – you’re just tax donkeys. Think the middle rich Doctors, Surgeons, Garth, Self-incorp, Smallbiz owners, you collectively pay nearly all the taxes. I personally pay more than enough and wish to stop.

The ‘real rich’ pay almost nothing, approaching zero as what they ‘own’ is either alien, barely taxed or at the complete discretion of the person. Good gig if you can swing it. Taxing them fairly would mean real wealth taxes which naturally are grey subjects.

#131 Is anybody home? on 10.19.21 at 9:42 pm

DELETED (Anti-vax)

#132 Cowtown Cowboy on 10.19.21 at 9:49 pm

This definitely smacks of ageist vote buying by our Apologist in Command…

As a Gen-X, we have about 1.4M or so in net worth but we didn’t even start saving until about 30 as we were still finding our careers, my parents, in their 80’s only have a few 100k in savings but they have a good Corp pension that neither my wife or I have…things tend to revert to the mean over time but of course try telling that to the ‘right now’ generation who want their 5-series Beemers, boats and rv’s 4yrs into their careers…I’ve met some big money people over the years and I really don’t think having a ton of money will make you happy…Just save and invest and in time you will be fine.

#133 Eclod on 10.19.21 at 9:57 pm

#75 Dolce Vita

Dolce, thank you…but…

For some reason I can’t find how many of the 40K are vaccinated and how many are not.

Now you know that they capture this data, why am I not seeing it reported anywhere or in this data reporting website you linked? Seems like an obvious metric to capture and report and surely they know status of all positive tests.

#134 leebow on 10.19.21 at 9:57 pm

#92 Stone

Let’s talk about Sharpe ratio. Mine is 2.5 YTD. What’s yours?

#135 PaulSowell on 10.19.21 at 9:58 pm

Garth, just finished your book Money Road from 2010 (found a copy on my dad’s bookshelf). LOTS has changed since then.. had to laugh at some of the paragraphs about Stephen Harper’s “large” deficits, compared to what is happening today.

Any thoughts on writing another book?

#136 Sydneysider on 10.19.21 at 9:58 pm

The wealth distribution among people bears a striking similarity to the energy distribution between molecules, if average wealth is compared to average energy.

The underlying principle is that purely random transactions between different agents will always move the system away from one of equipartition (of wealth or energy) towards one of exponential decay. The only way to prevent disparities of wealth is to force people to send and save/invest in exactly the same degree throughout the year.

#137 Dr V on 10.19.21 at 10:02 pm

Hmmm…. addendum to my last comment.

As the figures are for the present day, we would actually expect a skew towards younger cohorts, as they are starting with higher nominal values for assets and wages than older cohorts.

Of course this means younger cohorts will need a higher nominal net worth to retire. Duh.

But I don’t have a factor to go by for that.

#138 Phylis on 10.19.21 at 10:04 pm

#101 Sail Away on 10.19.21 at 7:12 pm
Rebar, does coated or uncoated make a difference?

#139 Plus on 10.19.21 at 10:07 pm

#126 Dolce Vita

Dolce – here is a WILD CRAZY IDEA!

If you don’t know…just SAY you DON’T KNOW!

SO MUCH twisting and turning by the media. So much science discarded to keep the narrative going instead of talking about it, making sense of it, asking the questions and trying to sort it out.

All of these actions just erode any trust people have in the media organizations. In my book now I trust 0% of what they say outside of sports and weather, and even that I double check by googling and looking outside myself.

Let’s not kid ourselves, some of us took notes during this pandemic and I think this whole thing will turn out very poorly for the media as a whole in terms of who watches them.

Funny, because the media used to challenge the politicians for their deceptions and lies, call them out on it and here they are – pretty much now across the board in the same pot. Who would have thought?

#140 Plus on 10.19.21 at 10:16 pm

#126 Dolce Vita

One more thing Dolce…

Considering what we know about coronaviruses in general, I find it fascinating that Delta has been reported to be one and the same and unchanged for 10 months now. It just does against what we know about this family of coronaviruses – they always change and mutate – and not stay same for this long.

#141 Stone on 10.19.21 at 10:20 pm

#96 Sail Away on 10.19.21 at 7:03 pm
#92 Stone on 10.19.21 at 6:43 pm

By the way, my B&D portfolio is sitting at 19.89% YTD. That’s 19.89% YTD in 2021, not 1960. Rub tummy! Feels like good times/opportunities to me today.

——-

That is very odd. I track the Stone portfolio you shared here at right around 14.93% YTD, including dividends. Two of the six holdings are actually negative for the year: VSB -2.45% and XEC -0.49%.

…or are you going on again about some secret sauce portfolio that you have never revealed?

———

What portfolio are you tracking? The one I shared with Soggy but that I quite clearly stated at the time was not mine as I had a bit more risk on my own?

Apparently, you have a reading comprehension skill gap. All that time fencing with Faron appears to have made you even more cuckoo. Who does that to themselves and is of rational mind?

And BTW, the portfolio I gave Soggy still has a respectable return for a B&D portfolio if I do say so myself. Regardless that VSB and XEC are negative ytd, it’s the overall return that counts. Stable, stress free, and consistent. Nearly 15% ytd is nothing to spit on.

#142 Stone on 10.19.21 at 10:34 pm

#134 leebow on 10.19.21 at 9:57 pm
#92 Stone

Let’s talk about Sharpe ratio. Mine is 2.5 YTD. What’s yours.

———

No idea. I make money hand over fist. I make the best judgement based on public information available and I consistently make money hand over fist, year, after year, after year. I learned lots from Garth, made a few tweaks to it, and I make money hand over fist.

When it ain’t broke, don’t fix it.

#143 Sail Away on 10.19.21 at 10:42 pm

#138 Phylis on 10.19.21 at 10:04 pm
#101 Sail Away on 10.19.21 at 7:12 pm

Rebar, does coated or uncoated make a difference?

——–

My thought is that the grittier the surface, the better, so we’ve always used uncoated which quickly gets rough and rusty. Discovered this when one of our little oaks was tied straight with a rebar stake and all the other trees would get thrashed, but not that one. So we did the same to the other trees and presto, no more thrashing for the last many years. Deer still eat the tulips and squirrels always get most of the hazelnuts, so not everything is solved.

#144 R on 10.19.21 at 10:44 pm

My apologies to Garth for the change of topic.Something I have been watching .The volcano at La Palma in the Canary Islands is continuing to get worse. The potential problem with this is if the fault in the island cleaves,and creates a landslide, a tsumami will be generated. Computer simulations of this event calculates the potential wave height a the shores of New York City potentally being around 30-40 meters ( 90-120 feet) . Enough geologists have been concerned/worried about this potential event that they modelled it. ( Goggle it).

#145 Andrew on 10.19.21 at 10:52 pm

“Instead of measuring the share of net worth held by each generation, it’s better to measure the average level of wealth for generations at similar points in their adulthood. In other words, how do 30-year-olds today compare with Boomers thirty years ago, when they were the same age?”

Isn’t that exactly what he’s doing in the video, Garth? See the standard of living commentary @ 3:20 for example.

#146 AM in MN on 10.19.21 at 11:01 pm

Taking a look at the bigger picture, there is going to be an ongoing intergenerational battle over finances, this is just one of the manifestations.

We have a welfare state model based on most people being long term married, employed and about 8 workers per retiree.

The reality is the opposite, and someone needs to pay.

For now, money printing and large scale immigration cover many of the cracks, but that assumes that attitudes of the younger voters won’t change over time.

If younger voters feel they are getting screwed, they call for policies like this one on housing, but the bigger ones will be pensions and health care for the boomers.

The easiest way out is what I believe will be the path. Print more money, but freeze the inflation adjustments for retirees and government workers, many of whom are older and expecting lucrative DB pensions. Those who are still working, especially in the dreaded private sector, can adjust their costs and expenses like any currency fluctuation.

Once you get away from the argument about having some sort of moral duty to look after the old people, who are not your own family, with immigrants who have been working here for say 20 years, finally figuring out the wealth transfer scam that has been set up, they will argue that they have their own family to support, and let the old get looked after by their own families, not the government.

Those boomers with real estate will have enough money, although I suspect not as much as they think once interest rates rise and inflation kicks into high gear from all the money printing.

Inflation is coming, just look at the energy markets and draw a line out two or three years. The question for voters will be whether or not to pursue policies of production and wealth creation or continue with money printing and consumption.

#147 Gen x here on 10.19.21 at 11:06 pm

Evidence shows that the richer you are, the more likely you are to believe that success comes from hard work and talent rather than luck or privilege,” says Fenton-O’Creevy. “If those attitudes harden, it’s easy to be judgmental about friends who are less successful, and attribute their lack of success to the fact they aren’t trying very hard.”

#148 cramar on 10.19.21 at 11:14 pm

#116 TurnerNation on 10.19.21 at 9:00 pm


More on the Kanadian Economic Shutdowns.

https://windsorstar.com/news/local-news/windsor-autoworkers-protest-new-vaccine-requirements
“Windsor autoworkers protest new vaccine requirements”

==========

I heard the head of their union Unifor on a radio interview the other day. Very interesting. He said 90-something% of the 4,500 Windsor Assembly workers are vaccinated. There are only a couple hundred that refuse. He said the vocal group of unvaccinated wanted the union to go to bat for them. Not going to happen, since their legal experts say that it wouldn’t stand a chance in court. The courts will uphold a company’s right to make it a condition of employment. He also said that many of his union members are telling him that they do not want to work with unvaccinated people. So he said that they will be not be allowed to work without getting vaccinated and even if they get vaccinated in future, likely they will never be allowed to work there again. Then he said something most interesting. The Unifor offices employs a few hundred people and they mandated in Sept. that every one working for the union at their HQ must be vaccinated!

Then it was announced the next day that 1,800 workers are being laid off due to the elimination of the second shift. So I figure that for every person who refuses vaccination and is permanently sent home, there will be 10 unemployed vaccinated autoworkers quite willing to take their place.

Now nobody unvaccinated will be allowed in Parliament. Times are getting interesting.

#149 Nonplused on 10.19.21 at 11:28 pm

#114 Faron on 10.19.21 at 8:58 pm
#82 Nonplused on 10.19.21 at 6:10 pm

#37 Faron on 10.19.21 at 4:07 pm
#24 XGRO and chill on 10.19.21 at 3:45 pm

Wow, NP, you never fail to disappoint.

[True]

I’m embarrassed for you that you didn’t grasp the chart.

[I think I got it.]

At all. Not going to waste my time explaining it to you.

[Whew!]

Simply put, it shows that, adjusted for age successive generations are doing worse for the simple reasons that since the 1980’s, the mechanisms for compounding wealth have been more and more difficult to access due to higher COLA and higher asset prices.

[It shows nothing of the sort. It shows that older people have more money because they’ve been working longer and also inherited the farm. And I thought you weren’t going to explain it?]

#98 Nonplused on 10.19.21 at 7:07 pm

Let’s say Bezos borrows $500,000,000 to buy a yacht. He can do that. But he has to make the payments. Can he just borrow more to make the payments? Yes. But at some point, to pay off the loan or make the payments, he either has to sell shares to raise money or pay himself. Both are taxable events.

OMG dude. First, the tax difference between taking a $1,000,000 salary and paying cap gains on $1,000,000 worth of stock sales is huge. the cap gains rate in the US is 20%.

[I wasn’t trying to argue what the tax rates should be. That is a different conversation.]

Second, Bezos holds lets say $100 billion in stock. if his annual expenses are 5 million, he has enough collateral to borrow against for 20 thousand years! Even if the bank asks for 50% margin on the collateral, that’s still 10 thousand years. And that assumes Amazon’s stock fails to appreciate. If Amazon lost 90% of its value, that’s still 100 years. do you get it?

[Yep, it would be nice to be Jeff.]

Finally, the opportunity cost in cashing out on his death bed is zero, so why not wait. And when he does, his tax rate will be far far smaller than what anyone would be paid in income. It’s a tax giveaway.

[Again, you are arguing about what the right tax rates should be for capital gains vs. income. I could propose some thoughts but it is outside the scope of this conversation. My point would be Bezos pays his taxes and every dollar of them according to the letter of the law. I am not arguing whether the law is perfect.]

Certainly no one has ever handed out a PhD to you.

[Ya, that’s true. My B.Sc. was enough to endow me with marketable skills. And anyway I was 22 when I graduated. It was time to make some money and pay off the student loans. And get a decent car. And a girlfriend.]

[Thinking back on it though, university was a lot of fun. I mean, it was also a lot of work, work work work all the time, but when it was time for fun we had a lot of fun. But the one thing most of us did not have was money. Looking back on it I never gave it much thought. I spent exactly zero time lamenting over how capital gains taxes were applied to the rich and what levels of disenfranchisement I suffered from.]

#150 Overheardyou on 10.19.21 at 11:40 pm

I remember looking at my boomer parents first car purchase in 1988, an Oldsmobile Cutlass. It was $27,000 and had a 12% interest rate on the loan. If my millennial cohort thinks they have it bad with houses now, they need to really think again.

#151 Don Guillermo on 10.20.21 at 12:22 am

#85 George S on 10.19.21 at 6:24 pm
#22 Don Guillermo on 10.19.21 at 3:34 pm
wrote ………..
Porsche – “More than 70% of all cars made since 1948 are still on the road today” says the Norway Classic Center.

https://www.autovinogroup.com/sooner-porsche.html

————————

That may well be true but that type of car is not meant for general everyday use. I doubt you see very many of them on the road in the winter, let alone out on a lake ice fishing. I suspect most Porsche owners coddle their car a lot more than Toyota Corolla owners
**************************************
Sorry George but your suspecting is off. 911’s are great daily drivers and on snow and ice with proper tires they’re awesome! These cars are extremely robust.

Watch this video from the freezing north . My first 911 was C4S and I drove it all winter. My current is a CS . I don’t drive winters now.

https://www.youtube.com/watch?v=fZGY93z8YAk

#152 Don Guillermo on 10.20.21 at 12:35 am

Jag, I think you called this a few weeks ago.

“Jyoti Gondek elected as Calgary’s mayor”

https://calgary.ctvnews.ca/jyoti-gondek-elected-as-calgary-s-first-female-mayor-1.5627246

#153 Jon B on 10.20.21 at 1:43 am

Get used to this. Earning money is so 20th century. Get with the times GT. More low interest borrowing equals more people thinking money is easier to borrow than earn. Tax shelters for whiney youth who campaign on the basis of inequity for unearned government grant money like this new tax free house savings account are getting their way. Extrapolate this out twenty years, doesn’t look good. What comes next from the generation squeeze lobbyists, down payment grants for first time buyers?

#154 Loophole on 10.20.21 at 3:38 am

Idea: Can you sell your house to your kid at full pop in such a way that then they apply for the new free cash scheme and get all the benefits plus you pay no commission ? This assuming you also supply them the down payment and get them to maximize the new tax free savings shelter? It sounds like there’s many loopholes to be enacted due to poor planners in the Trudeau scheme.

#155 Toronto_CA on 10.20.21 at 4:54 am

In the UK, there’s something called a Lifetime ISA which is akin to a TFSA where the government matches your contributions to a small extent (25% or £1k per year max) and you can use the money to buy a house AND it’s only available to under 40s.

The biggest caveat is that if your house is even moderately expensive relative to the national average (London area houses have a different benchmark) you must pay back the government top up.

This means the housing TFSA for under 40s is aimed squarely at the bottom half of the housing market, which I think keeps the impact on demand smaller.

But it is a similar system to the Canadian housing TFSA for under 40s. Just not as generous.

https://www.gov.uk/lifetime-isa

#156 Sail Away on 10.20.21 at 6:42 am

#141 Stone on 10.19.21 at 10:20 pm

What portfolio are you tracking?

…the portfolio I gave Soggy still has a respectable return for a B&D portfolio if I do say so myself. Regardless that VSB and XEC are negative ytd, it’s the overall return that counts. Stable, stress free, and consistent. Nearly 15% ytd is nothing to spit on.

——–

Nothing at all wrong with 15% and if you want to claim that, fine, that can be accepted as legit.

But… your claim of 19% without backup has no legitimacy. Everybody can be a hero on the interwebz. Just say it happened. A number of other blogdogs participated in this same exercise and shared their portfolio. You shared a portfolio but continually trumpet gains much higher.

Also factoring in to your integrity, you earlier posted lies about me and Vietnamese prostitutes on this site. Let’s just say your relationship with real, actual truth appears flexible at best.

The port you posted and total returns YTD are:

20% VSB -2.45%
20% ZPR +18.38%
20% VCN +20.90%
20% VUN +17.57%
16% XEF +5.88%
4% XEC -0.49%

YTD weighted return without div = +12%; div adds +2.9%

#157 leebow on 10.20.21 at 7:47 am

#142 Stone

Ok. So you have no idea what you are doing.

#158 Wrk.dover on 10.20.21 at 7:59 am

#150 Overheardyou on 10.19.21 at 11:40 pm
I remember looking at my boomer parents first car purchase in 1988, an Oldsmobile Cutlass. It was $27,000 and had a 12% interest rate on the loan. If my millennial cohort thinks they have it bad with houses now, they need to really think again.
______________________________________

A 78 Gutlass cost 1/3 of that in 78.

Ten years of inflation coming so IHTD9 is selling his paid for toys?

#159 the Jaguar on 10.20.21 at 8:19 am

Meanwhile, back at the Ranch…….

“Traders are betting that the Bank of Canada will be forced into raising interest rates earlier than expected, posing one of the stiffest tests yet for Governor Tiff Macklem.
Traders have now priced in three hikes in Canada by the end of 2022, which would bring the policy rate to 1 per cent from the current 0.25 per cent.

That’s about 50 basis points higher than markets were expecting just a month ago. The shift in pricing is increasingly at odds with Macklem’s guidance that borrowing costs won’t increase until slack is absorbed and inflation returns sustainably to its target range.

If Macklem capitulates around an early rate hike when he thinks spare capacity might still exist then the whole exit framework will turn into a dumpster fire,” Derek Holt, an economist at Bank of Nova Scotia in Toronto, said by email. “It could make forward guidance a very weak tool in future and magnify risks to policy efficacy.”

Either markets are not listening to the bank’s communications around its exit framework, or they don’t believe its argument that we still have slack in the economy given price and nascent wage pressures,” Holt said.

Acting a bit sooner into the second half of 2022 seems like the justifiable course of action,” Jimmy Jean, chief economist at Desjardins Securities Inc.

#160 crowdedelevatorfartz on 10.20.21 at 8:28 am

@#144 R
“The volcano at La Palma in the Canary Islands is continuing to get worse. The potential problem with this is if the fault in the island cleaves,and creates a landslide, a tsumami will be generated. Computer simulations of this event calculates the potential wave height a the shores of New York City ”

++++

A La Palma Tsunami would head North/south and west towards Brazil.

Estimates vary on wave height.
In the immediate vicinity (La Palma and the west coast of Africa) wave heights of 150 -650 ft ( some simulations say 1500ft|)could be possible.
A bad day in La Palma for sure.
However.
Friction from continental shelves could reduce the wave before hitting North and South America and Europe.
(10-30ft).
Although even 10ft in Florida would be interesting.
That volcano footage ……
It’s like watching a slowly boiling pot of water with the people and tourists milling about.

#161 crowdedelevatorfartz on 10.20.21 at 8:36 am

@#150 Overheard you

“I remember looking at my boomer parents first car purchase in 1988, an Oldsmobile Cutlass. It was $27,000 and had a 12% interest rate on the loan. If my millennial cohort thinks they have it bad with houses now, they need to really think again.”

++++

Yep.
A friend bought a brand new Toyota 4wd pickup in 1982 for $12,000 and the loan was at 23.75%.

I bought a similar truck in 1986 for $14,500 and 12% interest.

Houses in 1984 were $100,000 in Burnaby at 18 % interest.

#162 Stone on 10.20.21 at 8:39 am

#156 Sail Away on 10.20.21 at 6:42 am
#141 Stone on 10.19.21 at 10:20 pm

What portfolio are you tracking?

…the portfolio I gave Soggy still has a respectable return for a B&D portfolio if I do say so myself. Regardless that VSB and XEC are negative ytd, it’s the overall return that counts. Stable, stress free, and consistent. Nearly 15% ytd is nothing to spit on.

——–

Nothing at all wrong with 15% and if you want to claim that, fine, that can be accepted as legit.

But… your claim of 19% without backup has no legitimacy. Everybody can be a hero on the interwebz. Just say it happened. A number of other blogdogs participated in this same exercise and shared their portfolio. You shared a portfolio but continually trumpet gains much higher.

Also factoring in to your integrity, you earlier posted lies about me and Vietnamese prostitutes on this site. Let’s just say your relationship with real, actual truth appears flexible at best.

The port you posted and total returns YTD are:

20% VSB -2.45%
20% ZPR +18.38%
20% VCN +20.90%
20% VUN +17.57%
16% XEF +5.88%
4% XEC -0.49%

YTD weighted return without div = +12%; div adds +2.9%

———

Don’t really care what you think. You’re not important.

It seems I’m super important to you though. Weird.

#163 Phylis on 10.20.21 at 8:47 am

And the jenga tower wobbles…

https://www.bloomberg.com/news/articles/2021-10-20/chinese-developer-sinic-defaults-as-evergrande-contagion-spreads

#164 Dharma Bum on 10.20.21 at 8:51 am

#55 Moh

I focus on making that money and make the best out of my situation. Rather spending all the energy whining and complaining focus on how you can improve your situation!
——————————————————————————————

That’s the spirit!!!

Great attitude. I like it.

It will be interesting to see where the Mils rank financially once they become the wrinklies with thirsty undies.

Will they finally reach the net worth of today’s boomers, as a result of time, accumulation, and asset inflation?

Or will they still rank as the financial losers of all age groups, i.e., will the “youth” – 25-38 year olds, of 35 years from now be wealthier than the wrinklies (former mils) of their time?

We’ll have to wait and see.

I’ll report the results. By that time, I’ll be in my 6th reincarnation.

It might be as a dog.

#165 IHCTD9 on 10.20.21 at 8:55 am

#19 Another Deckchair on 10.19.21 at 3:29 pm
This is weird.

As a member of the oldsters on the block (very early 60s) we have an old early ’50s bungalow, one car, two bikes, and have had zero debt for a long time.
____

This is one of the things that doesn’t show up in the math. Sneaky stuff that plays into choices and outcomes.

Local median incomes do not always buy equal lifestyles from one area to the next. Also like you say, the “middle class” expectations these days are much higher than they were for Boomers and even Gen X.

Urban areas have more youth than Rural, and we can expect this ratio to increase. Obviously these metros have already excluded new home buyers due to cost – and all the policy in the world won’t fix it. Look at Trudeau’s efforts, he came to the rescue and now houses cost almost 2 Mil on average in the GTA and 700K nation-wide. Young singles in Metros will almost universally remain SFD-less.

Going forward we can expect even less marriage, cohabitation, and child rearing – how many young Mils and old Gen Z’s these days simply do not WANT to own a house? I wouldn’t blame them a bit all things considered.

Life gets more expensive as time rolls on. One income turned into two, one car turned into two, toys showed up in the 80’s and were added on top, houses went from 800 sf boxes to very nice 2000+ sf luxurious abodes.

A young millennial would look at our lifestyle and think we must be making a crapload of money to afford all that. I look at young Millennials and wonder how they could possibly afford such a nice Truck along with the CanAm SXS on the new aluminum trailer at their age?

#166 Plus on 10.20.21 at 8:55 am

Dolce,

Here, some adult talk about the whole thing…

https://nymag.com/intelligencer/2021/08/breakthrough-covid-19-cases-may-be-a-bigger-problem.html

Makes sense to me. Official message has often been weeks or months behind the virus. They don’t want to make people panic. So we’re not doing the adult things that are needed – it is as simple as that. A lot of actions are done, fingers crossed, hope for the best…yet not do things that make sense – like boosting the elderly.

#167 Russ on 10.20.21 at 9:00 am

Sail Away on 10.20.21 at 6:42 am

#141 Stone on 10.19.21 at 10:20 pm

Also factoring in to your integrity, you earlier posted lies about me and Vietnamese prostitutes on this site. Let’s just say your relationship with real, actual truth appears flexible at best.

The port you posted and total returns YTD are:

20% VSB -2.45%
20% ZPR +18.38%
20% VCN +20.90%
20% VUN +17.57%
16% XEF +5.88%
4% XEC -0.49%

YTD weighted return without div = +12%; div adds +2.9%
———————————————————

With a little creative writing it is easy to claim a 15% return from the above.

If a portion goes into an RRSP AND you add the refund to the total return it will be greater than 12%.

Get creative, get lucky and get ahead eh.

Cheers, R

#168 Ok, Doomer on 10.20.21 at 9:14 am

Being an aging Boomer, I injured my ankle recently and am hobbling around. Still in good enough shape that I don’t need a handicapped tag for the windshield, but here’s how the story goes:

Drove around my busy local shopping center and couldn’t find a spot close to the door. I didn’t want to park in the actual handicap stalls, so I chose to park my gas guzzler in one of the stalls reserved by the doors for the virtue signaling electric powered-preferred status overlords.

And guess what happened? Nothing. I’m going to park there all the time now, even after my ankle heals. It’s the only revenge I can get. The light went on and I realized that reserving special parking spaces for the preferred-status overlords just reinforces their sense of specialness and smug superiority.

“Let’s Go Brandon” to them. They can walk through the parking lot like everyone else.

#169 Dharma Bum on 10.20.21 at 9:18 am

If it’s all about the unprecedented rise in the prices of houses, then all the government has to do is buy a house for anyone under 40 who wants a house (because it’s not fair that house prices rose so much).

Yah.

It’s not fair.

The government has to fix it.

Houses for everyone (under 40).

Yipeeeeeeeeeeeeeeee!

Seriously though, I feel bad for Mils and anyone born afterwards. They will not experience economic and financial prosperity by default in the same way previous generations did over the last 75 years.

The mils are the first of recent generations that will have to adapt to what are essentially crappy times. Before the long term boom experienced since the mid 1900’s, it was mostly crappy times. Every generation had to deal with it.

The theme of life was endless struggle. Hardship. Misery. Drudgery. Poverty. A grind. Destitution. Hard luck.

This is what society is headed back to economically.

It should turn around again in a couple of hundred years.

I’ll be there.

#170 IHCTD9 on 10.20.21 at 9:27 am

#146 AM in MN on 10.19.21 at 11:01 pm

… The question for voters will be whether or not to pursue policies of production and wealth creation or continue with money printing and consumption.
_____

“We change our behavior when the pain of staying the same becomes greater than the pain of changing”

It’s gonna be a while yet IMHO. Everyone still wants the government to save them, and not yet ready to consider reality in a logical fashion.

For those of us that do, we already know the potential.

I’m in the process of preparing for it.

#171 Re-Cowtown on 10.20.21 at 9:40 am

Our new mayor in Calgary wasted no time in saying that she’ll be announcing a “Climate Emergency” in Calgary shortly.

By that I hope she means that she’ll be asking city council
to subsidize heat bills for the poor as it’s going to be a cold, dark and expensive winter.

#172 James on 10.20.21 at 10:32 am

#97 crowdedelevatorfartz on 10.19.21 at 7:06 pm

@#83 Dogman01
“The Huawei decision will show which way we are going.”

++++

I can’t see it happening.
The daughter of Huawei’s owner was Meng.
The cause of all the “Extradition/hostage” drama.

The US won’t be too happy with any of it’s Allie’s in Nato embracing Huawei technology.
We’re the US biggest trading partner.
If Trudeau is stupid enough to go with Huawei , watch the Canadian economy dry to dust.

But, never underestimate an intellectually stunted politician with delusions of his own brilliance….. to do the wrong thing.
____________________________________________
Which one we have so many? T2 is the best at delusions of his own brilliance, followed by so many in that party. They are all bought ans sold so easy while lining their own pockets with dirty backdoor deals.
Huawei must never ever be allowed on this soil.

#173 Sail Away on 10.20.21 at 10:41 am

#169 Dharma Bum on 10.20.21 at 9:18 am

Before the long term boom experienced since the mid 1900’s, it was mostly crappy times. Every generation had to deal with it.

The theme of life was endless struggle. Hardship. Misery. Drudgery. Poverty. A grind. Destitution. Hard luck.

This is what society is headed back to economically.

———

Nope. Technological advances continue to make life easier and less labour-intensive.

The monetary system is only a tool to facilitate productivity. Unwieldy, yes, but it works ok.

Let’s say ‘Poof’ and all money on earth were to disappear today, never to be re-instituted. Nothing tangible would change. It’s an illusion.

#174 Quintilian on 10.20.21 at 10:47 am

#169 Dharma Bum
“The theme of life was endless struggle. Hardship. Misery. Drudgery. Poverty. A grind. Destitution. Hard luck.
This is what society is headed back to economically”

Most of you curmudgeons tend to think this way, although it’s flawed.

The standard of living has been steadily improving, with some minor setbacks from time to time, nonetheless improved evidenced by life expectancy, health, education, along with many scientific breakthroughs.

I will grant you that we will need to do some work to resolve some of the malignant social tumors your generation is leaving behind, but that is ok we are up to the task

#175 James on 10.20.21 at 10:51 am

#165 IHCTD9 on 10.20.21 at 8:55 am

#19 Another Deckchair on 10.19.21 at 3:29 pm
This is weird.

As a member of the oldsters on the block (very early 60s) we have an old early ’50s bungalow, one car, two bikes, and have had zero debt for a long time.
____

This is one of the things that doesn’t show up in the math. Sneaky stuff that plays into choices and outcomes.

Local median incomes do not always buy equal lifestyles from one area to the next. Also like you say, the “middle class” expectations these days are much higher than they were for Boomers and even Gen X.

Urban areas have more youth than Rural, and we can expect this ratio to increase. Obviously these metros have already excluded new home buyers due to cost – and all the policy in the world won’t fix it. Look at Trudeau’s efforts, he came to the rescue and now houses cost almost 2 Mil on average in the GTA and 700K nation-wide. Young singles in Metros will almost universally remain SFD-less.

Going forward we can expect even less marriage, cohabitation, and child rearing – how many young Mils and old Gen Z’s these days simply do not WANT to own a house? I wouldn’t blame them a bit all things considered.

Life gets more expensive as time rolls on. One income turned into two, one car turned into two, toys showed up in the 80’s and were added on top, houses went from 800 sf boxes to very nice 2000+ sf luxurious abodes.

A young millennial would look at our lifestyle and think we must be making a crapload of money to afford all that. I look at young Millennials and wonder how they could possibly afford such a nice Truck along with the CanAm SXS on the new aluminum trailer at their age?
__________________________________________
I am an early millennial born in 81. My father in his sixties now taught us to work for what you want and work hard for it. I never had a car until I was 22 and it was a hand me down beater that I bought from an aunt. It was paid with cash. One of my friends in university bought a Porsche as soon as he graduated and landed his first job. I was envious but soon after I noticed that he had enormous debt that still haunts him to this day. My first pay cheques after university were to pay for rent and start an investment portfolio that my father helped me set up. The reason millennials do it is they want instant gratification and will not wait until they can afford it. My father would have booted my ass all over the street if I ever thought about doing that. So it comes down to upbringing from my boomer parents teaching you the value of good fiscal management and not purchasing shiny things when they are waved in front of your eyes.

#176 Shawn Allen on 10.20.21 at 10:54 am

October inflation measure is out today. It’s 4.4% year over year.

Canada Pension Plan will be indexed in January based on the average inflation readings these past 12 months. That’s probably going to be 2.5% or more.

CPP is fully indexed to All-items inflation. Nice. Most pensions are only partly indexed such as 60% of inflation.

Will CPP recipients at least say, hey that’s nice? Not likely. They will complain that their particular spending basket inflation is higher.

In any case a fully indexed pension is better than partly indexed, non indexed or no pension.

#177 IHCTD9 on 10.20.21 at 11:04 am

#161 crowdedelevatorfartz on 10.20.21 at 8:36 am
@#150 Overheard you

“I remember looking at my boomer parents first car purchase in 1988, an Oldsmobile Cutlass. It was $27,000 and had a 12% interest rate on the loan. If my millennial cohort thinks they have it bad with houses now, they need to really think again.”

++++

Yep.
A friend bought a brand new Toyota 4wd pickup in 1982 for $12,000 and the loan was at 23.75%.

I bought a similar truck in 1986 for $14,500 and 12% interest.
______

Fast forward to 2021 in the “New Canada”, I bought my Truck for 10K in 2017, and I’ll be asking 13K when it hits the block in the spring. Looking at the prices out there, it’s almost assured I’ll get more than I paid for it 4 years ago.

Of course, the truck I just bought would have been 30% less probably in 2017 too. But, if I get 13K for the old one, the “new” truck is free :).

#178 Dragonfly 58 on 10.20.21 at 11:11 am

My 20’s were in British Columbia in the 1980’s. What a treadmill of economic contraction/ disaster. For this boomer things got off to a very slow start indeed. Taught me perserverance, adaptability, patience. Pitty the 2010’s onward were not all that much better . Since retirement my income has gone back to what it was in 1995. Seriously, almost to the dollar. My income in terms of 1995 costs was actually quite decent, but in terms of 2021 costs it really only just gets me by. I do own a modest Lower Mainland house. If I didn’t rent would crush me.
Not all boomers are on top of the world.

#179 Damifino on 10.20.21 at 11:29 am

#171 Re-Cowtown

Our new mayor in Calgary wasted no time in saying that she’ll be announcing a “Climate Emergency” in Calgary shortly.
——————————————-

You have my deepest sympathies.

#180 Dragonfly 58 on 10.20.21 at 11:36 am

Actually , thinking back my 20’s were mid 1970’s – mid 1980’s. It’s amazing how time fly’s. Spent too much time in school in the late 70’s – up to the mid 1980’s. And lots of that was night classes while working as a Mechanic. I had a very strong drive to get beyond my blue collar roots.
The main earner in our household has been my wife { last 10 years }. She is actually doing quite well. But other than covering her share of household costs that’s her money. But that comes to an end in another 2 months as well. You have to retire some time.
We have always kept our finances separate. It was something that has worked for all the years we have been together. 1985 to date. It must seem strange to some of you , but it avoided many conflicts I have seen with other couples. You want it , save up and pay for it. No one but yourself to blame for mistakes. Like I say it avoided lots of conflicts. Since I retired my wife makes almost tripple what my pension pays. That has added a bit of stress but I can live with it. Our son will one day end up with my wifes money, that’s fine with me.

#181 OK, Doomer on 10.20.21 at 11:37 am

“Will CPP recipients at least say, hey that’s nice? Not likely. They will complain that their particular spending basket inflation is higher.”
+++++++++++++++++++++++++++++++++

The CPP is measured by looking at the cost of big screen TVs. Volatile things like food, clothing, shelter, heat gas, electricity etc. are all ignored.

So, if all you want to do is sit under a tarp in a public park and look at an unplugged big screen TV, inflation is 4.4%.

But if you want to live indoors, stay warm, have running water, plug in your Big Screen TV and eat a ham sandwich from time to time, inflation is running at 12%.

And that’s what happens when mathematically illiterate Mills elect a mathematically illiterate leader with a great haircut.

#182 Immigrant man on 10.20.21 at 11:39 am

Young Boomer reply: When I was growing up, everyone had a small house, usually a three bedroom bungalow in suburbia, one car and no air conditioning.
————–
He-he, immigrants from the soviet block be like “Wow dude, you’re rich! You had your own bungalow… and a car!!!111”

#183 Wrk.dover on 10.20.21 at 11:46 am

#177 IHCTD9 on 10.20.21 at 11:04 am
________________________________
If your example was not a fuel pig, but something more tangible like your thrashed wheelers, the guy that buys now, will resell in a few years for double though.

Ask your dad, he was there when sticker prices went up in 20% increments, often.

Plunging currency value helps this.

If I didn’t already own every last thing I want, I’d be buying all of it, stat. Not on credit.

These are the good old days.

#184 Ponzius Pilatus on 10.20.21 at 11:47 am

#171 Re-Cowtown on 10.20.21 at 9:40 am
Our new mayor in Calgary wasted no time in saying that she’ll be announcing a “Climate Emergency” in Calgary shortly.

By that I hope she means that she’ll be asking city council
to subsidize heat bills for the poor as it’s going to be a cold, dark and expensive winter.
———————
Yep.
Hold on to your wallet cowboys.
The Lady Mayor sounds like a tough cookie.

#185 Ponzius Pilatus on 10.20.21 at 11:51 am

#177 Ihtcd9
Of course, the truck I just bought would have been 30% less probably in 2017 too. But, if I get 13K for the old one, the “new” truck is free :).
——————-
Congrats!
You just invented the “Free Lunch”.
Nobel Prize in Economics all but guaranteed.

#186 Dragonfly 58 on 10.20.21 at 11:59 am

OK , Doomer, you made me choke on my coffee. So true!!!

#187 IHCTD9 on 10.20.21 at 12:00 pm

#173 Sail Away on 10.20.21 at 10:41 am
#169 Dharma Bum on 10.20.21 at 9:18 am

Before the long term boom experienced since the mid 1900’s, it was mostly crappy times. Every generation had to deal with it.

The theme of life was endless struggle. Hardship. Misery. Drudgery. Poverty. A grind. Destitution. Hard luck.

This is what society is headed back to economically.

———

Nope. Technological advances continue to make life easier and less labour-intensive.
____

True, and the funny thing is; it seems to make us less happy overall. One of the wealthiest cities is Canada is also one of the least happy. Women have come a long way from the point where they weren’t even allowed to vote – but they too are less happy now than they were a few decades ago.

Conversely, the mid 1800’s loggers in the Algonquin area worked their balls off dawn till dusk in the freezing cold, living in a stinking Camboose Shanty, and wearing the same change of cloths all winter. That was a tough life – yet everything you read makes mention that the Men who did this winter stint away from their farms looked forward to it, and enjoyed their winters in these logging camps.

Makes you wonder what it is that Humans are supposed to experience, it almost looks like you need to work like an Ox and suffer some oppression before you start getting happy about things.

#188 Victor V on 10.20.21 at 12:06 pm

‘Not transitory at all’: Scotia economist sees 8 BoC rate hikes

https://www.bnnbloomberg.ca/not-transitory-at-all-scotia-economist-sees-8-boc-rate-hikes-1.1669087

Holt said he expects the bank will “fight” some expectation in the market that rate hikes could be in the offing as early as the spring, but that the benchmark interest rate will start to raise later next year.

“Once they start going, we’re of the conviction that the Bank of Canada is going to hike four times in the second half of next year, and four more times in 2023, taking the policy right up to 2.25 per cent by the time they’re done,” he said.

#189 IHCTD9 on 10.20.21 at 12:23 pm

#185 Ponzius Pilatus on 10.20.21 at 11:51 am
#177 Ihtcd9
Of course, the truck I just bought would have been 30% less probably in 2017 too. But, if I get 13K for the old one, the “new” truck is free :).
——————-
Congrats!
You just invented the “Free Lunch”.
Nobel Prize in Economics all but guaranteed.
____

You’ll have to give that award to Trudeau, it was his idea!

#190 Wrk.dover on 10.20.21 at 12:25 pm

Faron; this site vindicated my belief on my local climate change.http://planthardiness.gc.ca/

SW Nova is now better than 1960’s St. Catherines.

#191 Plus on 10.20.21 at 12:25 pm

DELETED (Anti-vax)

#192 IHCTD9 on 10.20.21 at 12:31 pm

#183 Wrk.dover on 10.20.21 at 11:46 am
#177 IHCTD9 on 10.20.21 at 11:04 am
________________________________
If your example was not a fuel pig, but something more tangible like your thrashed wheelers, the guy that buys now, will resell in a few years for double though.

Ask your dad, he was there when sticker prices went up in 20% increments, often.

Plunging currency value helps this.

If I didn’t already own every last thing I want, I’d be buying all of it, stat. Not on credit.

These are the good old days.
_____

Nah, this is 100% a temporary scarcity event. I just saw an ad on Kijiji last night where a guy will offer 5-10K to take an existing spot near build date for a 2021/22 C8 Corvette:

https://www.kijiji.ca/v-cars-trucks/london/2021-or-2022-chevrolet-corvette-to-buy/m2455672

Buddy just can’t wait, and there are many more like him. Eventually, when the supply chains get back to normal; so will prices in the used market.

But for now, and maybe one more year – it’ll be a seller’s market for just about everything. That’s why with any luck – come summer of ’22 – I will have divested myself of everything less 1 mower, 1 dozer, and 1 trailer. Limited window of opportunity, and the perfect time for me to unload to boot. No brainer.

#193 Sail Away on 10.20.21 at 12:46 pm

#187 IHCTD9 on 10.20.21 at 12:00 pm
#173 Sail Away on 10.20.21 at 10:41 am

Technological advances continue to make life easier and less labour-intensive.

——–

True, and the funny thing is; it seems to make us less happy overall. One of the wealthiest cities is Canada is also one of the least happy. Women have come a long way from the point where they weren’t even allowed to vote – but they too are less happy now than they were a few decades ago.

Conversely, the mid 1800’s loggers in the Algonquin area worked their balls off dawn till dusk in the freezing cold, living in a stinking Camboose Shanty, and wearing the same change of cloths all winter. That was a tough life – yet everything you read makes mention that the Men who did this winter stint away from their farms looked forward to it, and enjoyed their winters in these logging camps.

Makes you wonder what it is that Humans are supposed to experience, it almost looks like you need to work like an Ox and suffer some oppression before you start getting happy about things.

——–

Animals are hardwired to gain pleasure from activities that ensure their survival.

Think about activities animals love to do. Dogs chase, cats hunt, horses run, pigs root, people gather and do athletic things together, mice hide and gnaw. And of course sex across the board.

We have fight or flight euphoria as part of our physiology for a reason and it needs to be used to avoid civilized ennui. Exercise feels great as does chasing and capturing. Mortal combat has a long and celebrated history.

Removing access to natural, evolved outlets leads to efforts to recreate it through other entertainment, with sports being prime example.

And other ways… heck, Doomer probably got a shot of adrenaline by breaking the rules and parking in my spot. If I see him there, I will helpfully yell at him to trigger more adrenaline and make him feel electrically alive.

#194 Green on 10.20.21 at 12:53 pm

#168 Ok, Doomer

Garth has one of those pictures! …before the picture gallery went to the dogs in a big way.

It was a photo of a parking spot, signed – “RESERVED FOR GREEN VEHICLES ONLY” and the guy parked his giant green pickup in it.

Somewhat funny.

But on the other side of this, anyone who takes their pickup truck and chips it, especially the turbo diesels – honestly, they need to be banned from driving.

If unvaccinated can’t eat in a restaurant, these idiots can’t be allowed to drive…anywhere. Total a-holes with completely ZERO awareness.

It’s not just lack of consideration to all others who have to smell this garbage, it’s the fact that these are some of the most health damaging emissions possible – and for what? So that some a-hole can pull away from a light half a second quicker? Honestly, each time I see it I hope they drive into a ditch.

#195 Philco on 10.20.21 at 1:05 pm

For the Green meatballs and the new mayor of Cow town.
While everyone here sucks up carbon taxes.
China tells mines to produce ‘as much coal as possible’
And the USA stomps on the coal burning gas pedal.
Theres no hope.

https://www.cnn.com/2021/10/20/business/china-coal-production-intl-hnk/index.html

#196 Tony on 10.20.21 at 1:12 pm

The Scotia Bank guy said there will be 8 interest rate hikes, 2% point increase in interest rates by the Bank of Canada by 2023 year end. This is low too, it should be minimum 14 rate hikes or 3.5% point higher in interest rates and a 5.25%+ mortgage rates. Derek Holt from Scotia Bank ,anyway, this alone will bring 4.00% to 4.25%+ mortgage rates which will make your mortgage in the GTA, Toronto, Vancouver and many other cities in Canada a $15,000 to $20,000 a year financial hit.

Guess what it gets better, inflation is not transitory, not temporary, it will be much higher today, tomorrow in 3 years and stick most of it with us. Now, your house, condo, property mortgage and other living expenses, gas, food, insurance, electricity, gas, water, garbage and property tax bills, carbon taxes, HST, GST etc. will be costing you easily $25,000 to $30,000 a year more in just 2-3 years. Guess what, it gets better, your paycheck and other income is taxable, $25,000 to $30,000 a year is not enough to cover just these higher costs, you need to increase your income from $38,000 to $50,000 in gross income, taxable income to just meet the big financial hit coming. Alot of Canadians are screwed. Guess what, it gets better, Oh, by the way, if people get more free stuff, money from the government, it just makes things worse, more interest rate hikes, more inflation, more taxes, cost of living going up and more job losses and lower quality jobs when they scare all the business investment away.

Well, to put more crap on the pile, if people keep borrowing more on their houses, condos, from employment checks, other types of desperate debt tactics they will just be going more into debt with more shady lenders because they are already maxed out will make the financial hit even more worse. You can’t spend, tax, pile up debt your way to prosperity. It never will work, it never works, it will work. Keep doing the real estate thing, good luck suckers.

#197 Shawn Allen on 10.20.21 at 1:19 pm

OK Doomer believes in lies

#181 OK, Doomer on 10.20.21 at 11:37 am claimed:

The CPP is measured by looking at the cost of big screen TVs. Volatile things like food, clothing, shelter, heat gas, electricity etc. are all ignored.

************************
You meant to type CPI I am sure and that claim is completely false. ALL of those things are in the CPI All-items basket. Try harder.

It’s hard to resist writing something insulting about your intelligence level and your level of self-responsibility. Why do you believe and spread lies? Is it to escape reality. To dodge accountability?

#198 Yuus bin Haad on 10.20.21 at 1:30 pm

Hey kids – having trouble figuring out to work a TFSA? Well, we have just the thing for you!

#199 Dragonfly 58 on 10.20.21 at 2:18 pm

I think OK’s post was intended to be just a bit “tonge in cheek ” . I took it that way. It is still very funny and unfortunately while the exact details may be a exaggeration, the overall meaning is all too true.

#200 Really on 10.20.21 at 2:45 pm

The millennials love low interest rates and now you have high housing prices. You should go back to school and learn basic economics instead of the other crap you learned there.

The boomers are going to get screwed with falling housing prices and low interest rates in Canada. The bigger they are the harder they fall. The ones controlling the money game are dividing and conquering Canadians and have no clue.

#201 jack on 10.20.21 at 10:31 pm

Another one:

Chinese Developer Sinic Defaults Amid Evergrande Contagion

https://finance.yahoo.com/news/chinese-developer-sinic-defaults-amid-022709836.html

#202 RIP Norm McDonald on 10.21.21 at 12:39 pm

If you consider the millennial net worth compared with how many people aren’t having kids it changes the numbers a fair amount. The guys I work (carpenter) with that have kids are getting into debt and can’t really make ends meet.

I’m able to save and invest a bit but considering how low my cost of living is it’s pretty clear to me that it’s getting tougher to get by. Food is one thing I don’t complain about though. For a days pay you can buy a ton of food. It’s the shelter that’s killing us, the only good option is renting a place with some friends that you hopefully can live with.

#203 we planned ahead on 10.21.21 at 1:37 pm

hey I loved Norm McDonald’s work, I liked his movie Dirty Work. Ironically, I have worked all my life doing dirty work. I am a retired waste disposal worker for 29 years in the same company. My wife retired just this year. We are both 57 and still don’t qualify for CPP, OAS but we planned way ahead financially to live well without it being more than 15% of our expenses needs. They treated me very good. Made some good money which was clean not dirty.

Joking aside, I am glad, I did not work in the public sector, government sector for a city, province, Federal. My wife and I are very satisfied with our finances. We have a GTA home worth $750,000, no mortgage for 18 years now. We are completely debt free. We both have RRSPs, TFSAs combined worth $700,000 in mostly Manitoba credit unions, 3.30% simple, 3.84% effectively compounded rate of 10 year GICs until 2028, fixed rate 5, 7 year GICs, term deposits worth $350,000 and old CN rail stocks inherited from my father 25 years ago worth $800,000 today, got to love these things and keeps going up 18% a year+ paying growing current 1.6% dividend yield.

We have a $96,000 sitting in a 2.5% savings account promo until 2022 March-31 which we will see after that. We both agree that having pensions from government is really a bad deal and we will stick to being financially more focused on managing our own finances.

#204 Millennial on 10.21.21 at 3:53 pm

As a Millennial, I’m unsure whether our generation has greater net-worth than previous gens at the same age. I’m not here to rile anyone up, but would like further clarification as I think important things to take into consideration were left out.

I understand you calculated for inflation, but how about the price of everything else? I’d be keen to know how many important things in life, i.e. housing, post-secondary school, daycare, cars, etc has exceeded CDN dollar inflation. That should put into perspective how much wealth us Millennials truly have in comparison to previous generations at the same age.

Based on that research and I’m sure many other key metrics (obviously hard to fit in a daily blog) should give the different generations a similar perspective and playing field to further discuss the best policies to put into place.

I do have a strong suspicion that every generation wants to say they had things the hardest. And, isn’t it progress if you’re in fact correct, that your generation had it harder than the next.