It’s coming

It was the best of times. The worst of times. With mere hours of trading time left in 2021, one of the weirdest years in memory fades to black.

Looking back, it will be recalled as a year of pandemic, the shocking, tragic revival of Adele (and Abba) plus the re-election of the most deficit-riddled, spendiest, profligate federal clique in Canadian history. But, wow, look what investment assets did.

The equity markets were on steroids, now finishing 2021 at record levels. Despite Omicron. Regardless of CBs taking away the punch bowl. And in the face of Joe Biden’s popularity crash, the busted supply chain and the worst inflation since a litre of gas cost 45 cents (1982). It’s remarkable. Over and again investors refused to take the pandemic seriously as an economy-wrecker and instead viewed it as a platform for rebounding growth, expansion and profit.

So the S&P is 28% higher than at this time last year and even Bay Street has surged 21%. A boring, restopedic B&D portfolio is ahead 13%. Bonds are down, preferreds are up and so are REITs, plus all the ETFs reflecting domestic and international equities. This portfolio protected people in March of 2020 when Covid crashed stocks 35%, and has chugged higher since – without stress or sweat.

So this week consider three things, and what they foretell: equity indices at new highs. The VIX (volatility index) seriously down. Bond yields climbing back.

This suggests what you’ve seen at the end of 2021 is what you can expect in ’22. The reopening trade continues as Omicron is viewed as Covid’s final, tepid chapter. The US mid-term elections will probably spank Democrats and halt their tax-everything-that-moves plans. And the biggest threat will come from the Fed (and the Bank of Canada, Bank of England etc.) as monetary policy changes from loose to tight. Stimulus will be sucked away. Rates will rise. That certainty is now baked into the outlook for 2022.

So stocks expect the cost of money to swell. Houses don’t. The impact on residential real estate remains to be seen as five-year mortgages finish this year at, or near, the 4% level. The major factor impacting that market will be supply and demand. As detailed here days ago, in the GTA (for example) there are a third of the listings normal a few years ago – and the population continues to grow. The biggest cohort averages 31 years of age, and the nesting FOMO is intense. Higher rates won’t quell sales much next year, as a result, but they will help starve the cash flow and erase the savings of an entire gen.

In short, the advice has not changed. Be balanced. Be diversified. Neither stocks nor houses will get through 2022 without volatility. Stay invested in financial assets, as opposed to saving. Maintain a fixed-income component, but certainly don’t hold 40% in bonds (or an ETF that does). These days GIC and HISA adherents are being slaughtered, and returns will remain well south of inflation all year. Be tax-wise. If Omicron fades by April, Chrystia will drop the hammer. If we’re still in a pandemic, there will be a reprieve. Regardless, in advance we should all stuff our TFSAs and feed RRSPs. And when the FHSA materializes, dive in fast and hard. It probably won’t last.

Now, regarding registered accounts, some confusion has reigned in the steerage section as to the inherent evil of RRIFs. But they are not. Unless you failed to plan.

At 71 (apparently, as I have found, the peak of male physiology) registered retirement plans must be cashed in, and the whole shebang added to taxable income (yuck) or converted to an income fund, called a RRIF. Then a mandatory amount (starting at a little over 5% annually) must be taken out as income. That ups to 7% by age 81 and 13% at 91. This is added to annual taxable income.

Only fair. After all, you got a tax break for contributing, so you pay when withdrawing and meanwhile all growth occurred in a tax-free environment.

But wait. What if there’s a fat pension, like one of those gold-plated government, taxpayer-subsidized defined benefit babies? For example, with a $1 million RRSP, at seventy-two over $54,000 needs to be taken as income. So if your DB pension already pays $75,000 a year, taxable income suddenly jumps to almost $130,000.

In this instance annual taxes of $17,700 (if you live in BC) jump to $37,200 (a 110% increase) while the marginal tax rate increases from 28.2% to 40.7%. Ouch. Plus your old-age pogey is clawed back.

How to avoid this?

Planning. People with DB pensions should throttle back on RRSP contributions, even though it feels good to claim the tax deduction. Instead stuff the TFSA – to churn out retirement income with zero impact on taxes or benefits – and maintain a robust non-registered account, which can be very tax-efficient.

The beginning of a shiny new year is a great time to assess. That’s now.

About the picture: “I am an avid follower of your blog. I am addicted to it just as many others are!” writes Anne. “I appreciate  the time you spend writing and researching it and reading all the comments that bloggers make. This is a picture of our Siamese cat, Symba, who is in total relaxation for the holidays. He is 3 years old and like many Siamese, just follows the family around and is into every thing. Kindest regards and Happy Holidays.”

109 comments ↓

#1 Leichendiener on 12.29.21 at 3:45 pm

I just checked the City of Toronto website for the pandemic data. It covers the last five days. The pandemic is over. Yes, you have a cold now go home and rest.

#2 vanreal on 12.29.21 at 3:51 pm

Or have a partner with no DB pension and income split.

#3 mitzerboyakaQueencitykidd on 12.29.21 at 4:00 pm

Health and happiness
to all of Garth’s pupils in 2022

the days r gittin a little longer already
here comes the sunlight have fun

#4 non-sense on 12.29.21 at 4:02 pm

In this instance annual taxes of $17,700 (if you live in BC) jump to $37,200 (a 110% increase) while the marginal tax rate increases from 28.2% to 40.7%. Ouch. Plus your old-age pogey is clawed back.

How to avoid this?
=====================

Retire early.

https://www.reddit.com/r/onguardforthee/comments/rqghwc/young_people_flocking_to_nova_scotia_as/

#5 UCC on 12.29.21 at 4:03 pm

Marry a much younger spouse, say 16 years younger, then peg the withdraw rate to her/his age, your withdraws will only be 2.8%. Good deal on all fronts.

#6 SunShowers on 12.29.21 at 4:03 pm

“Over and again investors refused to take the pandemic seriously as an economy-wrecker and instead viewed it as a platform for rebounding growth, expansion and profit.”

That’s because everything, including widespread human suffering, has been completely financialized, and the financial eggheads didn’t know what to do in March 2020.

But almost a year later, everybody knows what equities to buy, which to hold, and which to short in order to make maximum profit from abject death, sickness, and misery.

Won’t be long before we have big shareholders lobbying lawmakers to adopt haphazard policies that will endanger public health for the sake of protecting their investments.

Oh wait, it’s already begun.
https://www.npr.org/2021/12/29/1068731487/delta-ceo-asks-cdc-to-cut-quarantine

#7 Don Guillermo on 12.29.21 at 4:05 pm

“profligate” – had to look it up. Doesn’t that describe the clown show?

#8 Felix on 12.29.21 at 4:05 pm

Another acceptable photo, with our feline approval.

Just like how the other day my contribution helped this blog get over the record setting 700 comments mark, cats will always empower and improve human lives.

Mutts? Well, the beginning of a shiny new year is a great time to assess their dogawful drain on humanity.

Kind of like an RRSP that’s too fat for a DB pensioner, the value of a pooch is grossly overrated.

#9 Taco Devil on 12.29.21 at 4:10 pm

Such linear increase, as of nothing happened.

“The current life expectancy for Italy in 2021 is 83.71 years, a 0.17% increase from 2020. The life expectancy for Italy in 2020 was 83.57 years, a 0.17% increase from 2019. The life expectancy for Italy in 2019 was 83.42 years, a 0.17% increase from 2018.”

#10 TurnerNation on 12.29.21 at 4:14 pm

Economic Global Lockdowns – permanent, rolling. This is until 2025. The perfect end game – the more you PCR test the more they lockdown.

To wit – carefully read this one:

“”We are definitely seeing an increase in COVID-positive children, but they are not necessarily coming in with COVID symptoms,” Owensby said. The kids are coming in for some other treatment, she said, and are testing positive when they are screened.”
https://www.ctvnews.ca/health/coronavirus/new-omicron-variant-fills-up-children-s-hospitals-in-the-u-s-1.5721007

.ABC News @ABC LATEST: The newly updated CDC guidelines don’t require testing at the end of isolation because PCR tests can stay positive for up to 12 weeks, CDC Director Dr. Rochelle Walensky tells @GMA. https://abcn.ws/3401yEN

https://www.cdc.gov/csels/dls/locs/2021/07-21-2021-lab-alert-Changes_CDC_RT-PCR_SARS-CoV-2_Testing_1.html
“After December 31, 2021, CDC will withdraw the request to the U.S. Food and Drug Administration (FDA) for Emergency Use Authorization (EUA) of the CDC 2019-Novel Coronavirus (2019-nCoV) Real-Time RT-PCR Diagnostic Panel, the assay first introduced in February 2020 for detection of SARS-CoV-2 only.”


— Control over travel/movement? Yep – the QR code is being rolled out in USA now, first in the passive Democrat controlled cities. Every human must be put into the Blockchain – it was built for us

.Biden says if medical team advises it, he’ll issue domestic travel vaccine requirement Update (thehill.com)

https://www.cbc.ca/news/politics/tourism-minister-recovery-staff-borders-1.6287730
“Tourism industry may have to live off domestic travel until the fall, says minister

#11 Chameleon on 12.29.21 at 4:16 pm

This blog went from dull mono(dogs) to exciting stereo (cats & dogs).

Next up – let’s go quadrophonic!

This will leave room for 2 new animals. I suggest elephants and chameleons.

No humans please. They just take advantage of each other and consider this success in life.

#12 WTF on 12.29.21 at 4:20 pm

Finally a Meezer photo, smarter than the average RE sales “professional”?

You be the judge.

https://www.reddit.com/r/fightporn/comments/rcodqy/realtor_fight_in_atlantic_city_convention_not_my/

#13 Dan in Nanaimo on 12.29.21 at 4:29 pm

Think of the months following March 2020 as the best ever gift-horses offered exclusively by J. Powell farms. Extraordinary liquidity for extraordinary times. Now that things are getting funky with Eurodollar futures inverting – along with diverging gaps in the 2s/10s – that might mean we can return to pasture and the wide open playing fields again. Plan accordingly during Q1 2022 – it might be the best year yet…

#14 Wrk.dover on 12.29.21 at 4:30 pm

#4 non-sense on 12.29.21 at 4:02 pm
Retire early.

https://www.reddit.com/r/onguardforthee/comments/rqghwc/young_people_flocking_to_nova_scotia_as/
______________________________

I just read all the comments on that. Meh.
I came here in ’79 @ 27

Not easy, but one can afford to be poor here.
Here is an accurate quote:

“Nova Scotia is an excellent poor man’s country, because almost any man, in any walk of industry, by perseverance and economy, can secure the comforts of life.” Joseph Howe, 1834

You’d better be versatile though.

#15 Dolce Vita on 12.29.21 at 4:31 pm

Good advice. Doing it with what I can afford.

YTD 20% and 33%, TFSA and Cash Accounts.

Others here probably did way better but for me a God send and dividends from all the ETFs, ETNs I own that cover my monthly expenses w/o touching pensions money (1 is DB).

All that from what is really a Threadbare Portfolio.

Advice mostly taken from you Garth and Crew.

Garth, you have allowed me to make magic out of little – 5 loaves, 5 fishes stuff.

Thank you again – Grazie Infenite.

Buon Capodanno!

#16 non-sense on 12.29.21 at 4:40 pm

https://ca.finance.yahoo.com/news/cpp-premiums-getting-bigger-bump-183618893.html

#17 Ballingsford on 12.29.21 at 5:19 pm

Beautiful cat! Real estate will likely keep going up in 2022. Most Millenials are so screwed.

#18 Earlybird on 12.29.21 at 5:23 pm

A big thank you again for the knowledge and summary of such important things.

Even though this subject is a common theme here….reading it over and over is the difference between just hearing it and really knowing it!

I cant believe how fluent in financial literacy I have become!

I can tell by the perplexed face expressions in people that are not….that needs to change…hence the real value this blog brings!

HNY to all…..and hang in there lone poster “CHEESE” …you ve come to the right place…

#19 Useless for short on 12.29.21 at 5:29 pm

I hope this is the beginning of the end of the pandemic but with so much of the world unvaccinated more variants could still be a plane ride away. Not to mention all of the ass clowns right here where we are fortunate enough to even get third doses that still have refused even one could also be variant factories.

#20 espressobob on 12.29.21 at 5:31 pm

Risk is in the eye of the beholder. Loads of shit on the internet assuming Armageddon. Most amusing.

Owning the major indices by market cap usually provides a positive result as it always has.

Following losers has implications.

#21 Jane on 12.29.21 at 5:32 pm

Very solid advice re: RRIFs. My parents are seniors and I help them out with the financials. They take out the minimum they have to from their RRIF but they don’t even need it because of Pop’s defined benefit pension! So it gets moved partially in a cash investment account and stocks are bought, the rest in GICs.

#22 cuke and tomato picker on 12.29.21 at 5:33 pm

Yes RRSP are interesting you think you are saving for
yourself but you are really saving it for the government.

#23 the Jaguar on 12.29.21 at 5:37 pm

‘Our Siamese cat, Symba’.

The outstretched arms say ‘I’m yours’. The beauty of the Siamese. Blue eyes a stand out from the dark face that melts into a sandy sleek fur background. No wonder Disney wrote them into Lady and the Tramp. The only thing missing is the diamond collar from Tiffany’s.

The Jaguar could lend hers to Symba, I suppose…

#24 Linda on 12.29.21 at 5:49 pm

About the DB pension RRSP/RRIF issue. The DB pension plan I belong to posts the average pension paid on an annual basis. For 2021 the average pension paid was $19,000. Are there folks out there who get $75K per annum? I’ve no doubt there are, but the vast majority receive far less. Further, the pension adjustment reduces RRSP contribution room by the amount paid into the plan by the employee. This means if one earns enough income to make a $10K RRSP contribution but paid $8K into their workplace pension plan the amount they could contribute to an RRSP would be $2K ($2,000). Let’s just say that such low contributions do not a $1 million RRSP make. Given that the vast majority don’t have a workplace pension & eschew RRSP or TFSA contributions to boot I think most won’t have to concern themselves over having their OAS clawed back.

#25 NOSTRADAMUS on 12.29.21 at 5:50 pm

YOU CAN KILL SOMEONE!
You can put this quote up on the fridge door, about eye level. “You can kill someone with the reckless usage of percentages.” In other words, do your own math calculations before you venture into unchartered waters. Talking about water ,undetected, a rogue financial wave has been building up offshore. However, the weatherman has forecasted, nothing but blue sky. No danger of rain and thunder in the foreseeable future. The beach is calm, barely a ripple, strange, you can even walk out for miles. Life is good. Money has been easy to borrow. All you have to do is rush out onto the beach with your wheelbarrow and fill it up. The further out you go, the easier the pickings. Even the lifeguards (bankers) are encouraging you to go deep. Your Assets, percentage wise, are all priced to perfection. Mmmm, what’s that sound? Mommmeee, I’m scared. Sleep tight my little beauties.

#26 VladTor on 12.29.21 at 6:05 pm

…The equity markets were on steroids, now finishing 2021 at record levels.

************
There is no economic reason for this. Printing money inflates this bubble. Feast in Time of Plague. A rise in prices by 20% or more is a signal of the beginning of hyperinflation.
Here is just one example –>
https://www.cnbc.com/2021/12/26/bubblicious-used-car-prices-rising-faster-than-bitcoin-jim-bianco-warns-.html

#27 confusedMill on 12.29.21 at 6:17 pm

What to do with down payments saved in cash?

#28 espressobob on 12.29.21 at 6:17 pm

Covid will run its course. Like a hurricane, it doesn’t matter the category. It’s still doing its business.

Still some deny the severity of its damage and refuse to protect their own physical asset as if it’s a non issue.

Autonomy over ones body and the refusal over social responsibility is proving in a sense to being ignorant to the extreme.

Hell, who cares about those that are vulnerable and pay the price?

Getting jabbed is a simple selfless act to protect others.

#29 earthboundmisfit on 12.29.21 at 6:40 pm

A deep dive into some of the most popular all-in-one-size-fits-all ETFs shows them trending closer to 70/30 than 60/40. The bond components look to be a decent mix of federal, provincial, corporate, with long, medium and short durations. Add a REIT ETF and good to go. What’s your aversion to them?

#30 Love_The_Cottage on 12.29.21 at 6:46 pm

#9 Taco Devil on 12.29.21 at 4:10 pm
Such linear increase, as of nothing happened.

“The current life expectancy for Italy in 2021 is 83.71 years, a 0.17% increase from 2020. The life expectancy for Italy in 2020 was 83.57 years, a 0.17% increase from 2019. The life expectancy for Italy in 2019 was 83.42 years, a 0.17% increase from 2018.”
______
This seemed odd so rather than ask where you got the data I did the google myself. Here’s what I found:

https://www.macrotrends.net/countries/ITA/italy/life-expectancy

With this in large red at the top:
NOTE: All 2020 and later data are UN projections and DO NOT include any impacts of the COVID-19 virus.

#31 crowdedelevatorfartz on 12.29.21 at 6:56 pm

@#22 Cucumbers and over ripe tomato’s

“Yes RRSP are interesting you think you are saving for
yourself but you are really saving it for the government.”

++++
Impressive.
20 words or less to display financial ignorance.

Let me guess.
No RRSP investments Cukie?

#32 Jane on 12.29.21 at 6:59 pm

Replying to #24 Linda

Yes, my father’s pension (2 combined) is ~80K/year. These were different times! He’s in his late 70s. We grew up middle class and he worked for the Cdn armed forces and later for the feds.

#33 Ballingsford on 12.29.21 at 7:14 pm

#27 confusedMill on 12.29.21 at 6:17 pm
What to do with down payments saved in cash.
*******
Buy your house with it.

Or, if you dont have enough yet, invest it in something where you get some return like an ETF in a TFSA.

Are you new here?

#34 Ballingsford on 12.29.21 at 7:22 pm

#31 crowdedelevatorfartz on 12.29.21 at 6:56 pm
@#22 Cucumbers and over ripe tomato’s

“Yes RRSP are interesting you think you are saving for
yourself but you are really saving it for the government.”

++++
Impressive.
20 words or less to display financial ignorance.

Let me guess.
No RRSP investments Cukie
*****
More complex fartsy. Depends on if he/she has a DB pension plan or not. A few other considerations too.

I always disliked RRSP’s because it’s just a tax deferral.

You’ll pay the piper eventually.

My mom would have turned over in her grave when the tax man cometh after she passed.

#35 Paul on 12.29.21 at 7:39 pm

My grandmother has a whole lot of GICS in TFSAS, joint accounts as my grandfather was the main money manager in the family. He passed away just last week but left her with a modest house no debt, mortgages, $1.25 million earning her $40,500 interest a year all tax sheltered as she is still not 71 yet. She still gets $2,800 a month with CPP, OAS, LIRA monthly payouts.

Looking at most Canadians at 68 years old, it looks like to me she is much better off than most Canadians even with just 3%+ GICS, TFSAS.

#36 I don’t know on 12.29.21 at 7:41 pm

26 VladTor on 12.29.21 at 6:05 pm

There is actually loads of economic reason for it, mostly supply and demand.

The pandemic has changed the way people live. Some of it temporary and some of it permanent.

A lot of the inflation we see is a result of disrupted supply chains. Lockdowns, reduced capacity, localized outbreaks and border closures are the main reasons. Most of these will resolve over time (but it could take years).

Of critical importance is how behaviour has changed. Your car example is perfect and makes sense. In addition to the supply chain bottlenecks for car part suppliers that exist, a huge amount of people are now nervous to travel on busy busses with many people crammed together. Up goes the demand for cars.

Ditto housing as the desire for backyards and space intensifies.

The pandemic also taught us how resilient the economy is. Think the WFH revolution, Amazon products, and Apple iPhones.

Monetary policy is only one factor. The pandemic basically proved how important it is to stay invested and ignore the noise.

#37 Taco Devil on 12.29.21 at 7:45 pm

#30 Love_The_Cottage

Forgive me Love_The_Cottage, I’m not allowed to post factual data.

May I ask a question though? Italy conducted a detailed analysis on their (at the time) 130K reported deaths and found that 97.1% had serious issues such as such as ischemic heart disease, heart failure, type-2 diabetes, obesity or autoimmune disease and only 2.9% could be attributed solely Covid-19 as cause of death after detailed review.

So, why would the stated projections not be met?

I think the bigger issue is the 5-year shorter male average age vs. female in most western countries that should be the real issue to focus on. We (men) stress, we work, we pay the bills only to kick it 5 years sooner? Why aren’t we outraged about this?

That’s 5 years of investment returns we don’t get to enjoy as well.

#38 THE DANDADA on 12.29.21 at 7:50 pm

Another MASTERPIECE!

Please elaborate on this further on another post..

“and maintain a robust non-registered account, which can be very tax-efficient.”

How is this done?

#39 Stone on 12.29.21 at 7:54 pm

With only a couple days left in the 2021 year, my wonderful B&D portfolio rebounded nicely from the little bout of volatility we experienced over the last few weeks with a 22.40% return ytd. No stress. No sweating. Almost no effort. Thanks B&D and thanks Garth, Ryan, Doug and Sinan. And Dorothy. Most of all, Dorothy.

#40 Ballingsford on 12.29.21 at 7:56 pm

I’ll offer a bit of advice for someone thinking of buying a new home. I was prepared and I’m fine. New build owner in Oct 2021.

Sure, have your downpayment, 5, 10, 20%+.

Have another $20,000 for land transfer taxes, lawyer, appliance upgrades, and movers.

If you are like me, add another $60,,000 for upgrades and hope banker is OK with that.

Seal the deal. Worked for me.

Then another few thousand for blinds or curtains if you do it yourself. $12,000 if you hire someone to do it.

Point is, you need to have a reserve fund and not only the downpayment.

Didn’t have to finance anything. Including the 75″ TV in family room. That’s only one of 4 TVs we have, wall mounted, no wires showing for all of them.

And, I dont make an exorbitant wage.

#41 Drinking on 12.29.21 at 8:01 pm

Must be a bad day; another Feline pic!! Sigh, must be the cold and flu numbers posted through out Canada today!

Dorothy was right; you have them Fooled! :)

#42 willworkforpickles on 12.29.21 at 8:25 pm

Whether debt creation is reined in or not in the next year or two, inflation on essentials is going to skyrocket enough to eventually affect the value of assets here substantially.
More-so, if nothing much is done about new debt creation.
Nothing of much significance will be done in the next year to reign in debt creation regardless of the many empty assertions otherwise.
Its gotten beyond the control and point to undertake a meaningful lasting fix.
Pay and pay till it hurts and beyond is a certainty for us.
Runaway debt on a global scale is creating the kind of long term shortages in areas that will affect even food prices drastically here at home and around the world very soon.
There is a growing global unease of the very nature that has previously led to massive upheaval and major conflict on a world scale.
Expect interest rates to rise with the building tension. And regardless of how they have served in the past to remedy out of control economic ills, they won’t nearly perform and help to fix a sick economy as well as they once did before all this debt existed in this upside down world that has mindlessly been created.

#43 Ballingsford on 12.29.21 at 8:33 pm

#41 Drinking on 12.29.21 at 8:01 pm
Must be a bad day; another Feline pic!! Sigh, must be the cold and flu numbers posted through out Canada today!

Dorothy was right; you have them Fooled! :)

****

Cat pics are OK. Shows how people who live on the other side of the tracks. We shouldn’t discriminate.

#44 AntMan on 12.29.21 at 8:43 pm

#10 TurnerNation on 12.29.21 at 4:14 pm
Economic Global Lockdowns – permanent, rolling. This is until 2025. The perfect end game – the more you PCR test the more they lockdown.

Hey TurnerNation. I love a good conspiracy theory as much as anyone but I’m not so sure about some of this. I’m currently travelling through the U.S. in search of warmer climes. No one asked for any kind of vax document when we entered from Canada. Staying at hotels, eating in restaurants, shopping wherever and no one has once asked us for vax proof. Most restaurant servers and hotel staff are unmasked. Most people walk around in stores and restaurants unmasked. As far as I can tell people in the states I’ve visited really don’t seem too worried about covid. Nothing has been closed and I think if Joe proposed such a thing there might be another riot on the hill. As far as I can tell it’s business as usual here and nobody is going to tell them different.

#45 Love_The_Cottage on 12.29.21 at 8:53 pm

#37 Taco Devil on 12.29.21 at 7:45 pm
…97.1% had serious issues such as such as ischemic heart disease, heart failure, type-2 diabetes, obesity or autoimmune disease and only 2.9% could be attributed solely Covid-19 as cause of death after detailed review.

So, why would the stated projections not be met?
____
Someone has type-2 diabetes. There life expectancy is x. Let’s say 70. They then get COVID and on average die at 69. So shorter average life. The projections you state specifically exclude COVID. If we exclude heart disease and cancer we can project a life to 100 but of course that makes no sense because we can’t ignore heart disease or cancer any more than we can ignore COVID.

Even study I’ve seen says life expectancy is down due to COVID.

https://www.pnas.org/content/118/5/e2014746118

#46 Unpinned on 12.29.21 at 9:08 pm

Season’s Cheer for All Greaterfools! We are on a beach just a hop skip and jump from the Georgia border. We all is setting out at the Holiday Inn patio bar on the beach having a heaping good spell with live music. Y’all come down now ya hear! Hark those angels scream INFLATION…like Jimmie Dean bacon at $12.00 per pound. at the local Publix and a six pack of bagels for $5.00 in real money i.e. U.S. currency.

#47 Shawn on 12.29.21 at 9:09 pm

People make bad RRSP choices

How to get a million in an RRSP despite a DB pension job:

I know of a woman who had a sort of higher clerical job in the federal government.

In the early 90’s all federal clerical women who worked from the early 80’s on received pay equity on two different occasions. In her case roughly $4000 first and then later about $10,000. The feds allowed this to go into RRSP as extra contribution room. This was huge given the normal $2000 or so RRSP limit due to the Pension Adjustment.

You just know that the vast majority of these women, spent that money and paid the tax on it while this lady put hers into the RRSP.

Later there was a severance payment even though her job was only transferred to the provincial government away from the federal government. This time about $12,000 was allowed to go into RRSP. There was a rule $2000 of severance for each year before 1991.

Again, you just know that most who got that money did not put it into an RRSP and instead spent it and paid the tax.

In the end a total $66,400 went into her RRSP, with no contributions after age 53 (TFSA came along so why bother?) and today it is worth over $1 million at her age 61. The tax on withdrawal in Alberta will be 30.5% or eventually 40% if the clawback applies (Clawback is 15% or about 9% after tax – you don’t pay tax on clawed back mounts of course).

That’s a real example and if Cukes and Ballingsford think that’s just a tax deferral they are completely wrong as our friend fartz also pointed out. (They made their RRSP mistakes likely years ago and now need to defend their position) And yes, Linda, $1 million RRSP with DB is possible. The RRSP will easily pay more than her pension. The tax man is welcome to his share.

Then again, with inflation, $1 million or $100k income in retirement is not what it used to be…

#48 Ponzius Pilatus on 12.29.21 at 9:12 pm

#44 AntMan on 12.29.21 at 8:43 pm
#10 TurnerNation on 12.29.21 at 4:14 pm
Economic Global Lockdowns – permanent, rolling. This is until 2025. The perfect end game – the more you PCR test the more they lockdown.

Hey TurnerNation. I love a good conspiracy theory as much as anyone but I’m not so sure about some of this. I’m currently travelling through the U.S. in search of warmer climes. No one asked for any kind of vax document when we entered from Canada. Staying at hotels, eating in restaurants, shopping wherever and no one has once asked us for vax proof. Most restaurant servers and hotel staff are unmasked. Most people walk around in stores and restaurants unmasked. As far as I can tell people in the states I’ve visited really don’t seem too worried about covid. Nothing has been closed and I think if Joe proposed such a thing there might be another riot on the hill. As far as I can tell it’s business as usual here and nobody is going to tell them different.
—————-
Yeah,
I heard that the good people of Alabama and Mississippi still think it’s a hoax.
As for the people dying from COVID:
Blame it on the rioters and looters.
And, of course all the illegal aliens.

#49 Shawn on 12.29.21 at 9:16 pm

About Life Expectancy

If someone is already 50 or 60 or 70 or certainly 80 or 90, you can’t just use average life expectance.

A 90 year old cannot be expected to die at say 83. You have to use a mortality table that shows remaining average years at each age.

Also the richer you are and (sad to say) the whiter you are the longer you are likely to live.

We should strive to be better than average in all aspects of our life and most certainly in life expectancy. There are ways to live longer and ways to die younger and some of them are under our control, some not.

#50 mike from mtl on 12.29.21 at 9:18 pm

No real comment other than you’re finally warming up the the other 50% of non-human living partners – domestic Felines.

Old skool natural colourpoint as pictured tend to be quite talkative & opinionated.

#51 Garth's Son Drake on 12.29.21 at 9:30 pm

I just watched a video of Steve Saretsky testifying in the House of Commons on the excesses of fiscal and monetary stimulus leaking into the housing market.

Looks like Pierre Poilievre is his new bff.

I think Pierre is onto something and gaining traction in the house. At least for the 30% of people who are not home owners.

Steve should have answered his questions by reposting his lifestyle on instagram. It pretty much sums up Canada.

Life before becoming a realtor – angry millenial who cannot afford a home. Gets a big following of others in the same boat.

Life after becoming a realtor – multiple homes, several investment projects, chartered planes to Hawaii, Palm Springs and Vegas every other month, buying physical gold bars downtown, stacking a huge cryto portfoio, you get the picture.

Greg Mclean for Calgary Center asked what the percentage of RE investment is.

Steve says downtown Vancouver is 50% investor owned.

Needless to say, AB is pissed they can’t afford BC investment properties anymore.

But ironically, everyone is at the trough feeding and it is this very setup where people need to look in the mirror.

It is my greed, your greed, people in the house greed, realtor greed, mortgage broker greed, banking sector greed, and every other persons greed that is driving this.

You can’t really hate on the person who learns the game and decides to ride it like everyone else who has been doing just that after getting it figured out.

Eat or have your lunch stolen. They teach you this in MBA (me before anyone else) school.

I wonder how long these investors will be once rates rise.

It could be a trickle or it could be a flash flood. Needless to say, the gov will never fix this problem.

And we will eventually find out as we are all in this together.

#52 Sail Away on 12.29.21 at 9:31 pm

#48 Ponzius Pilatus on 12.29.21 at 9:12 pm

I heard that the good people of Alabama and Mississippi still think it’s a hoax.
As for the people dying from COVID:
Blame it on the rioters and looters.
And, of course all the illegal aliens.

———-

Hardly that. I’m pretty sure barely anyone thinks Covid is a hoax, but there are a whole lot of people who think it’s no big deal. 20 years ago, it wouldn’t have been sequenced and would have been chalked up as a couple of bad flu years for the oldsters.

#53 crowdedelevatorfartz on 12.29.21 at 9:40 pm

@#34 Bailingsford
“I always disliked RRSP’s because it’s just a tax deferral.”

=+++

Yes you eventually pay taxes.
But think of the years and years of invested growth.

Taxes after 71?
AFTER you retire and one would assume are earning less (much less?) than your current working income.
So your taxes after retirement will be less than they currently are.

ANY time the govt is offering me a tax refund for investing in my retirement…..
I’m taking full advantage of it.
I max every year and reinvest the tax refund.
I have zero unused RRSP contribution room.
31 years of tax refunds have grown quite nicely.
As have my non registered investments and my maxxed TFSA’s
4 more years to go before I stop riding the elevator
:)

#54 truefacts on 12.29.21 at 9:43 pm

DELETED (Anti-vax)

#55 westcdn on 12.29.21 at 9:46 pm

I will miss you when you pack. You are one of a kind and I am grateful – though I may disagree but that is how I learn…

#56 Russ on 12.29.21 at 9:53 pm

Love_The_Cottage on 12.29.21 at 8:53 pm


Someone has type-2 diabetes. There life expectancy is x. Let’s say 70. They then get COVID and on average die at 69. So shorter average life. The projections you state specifically exclude COVID. If we exclude heart disease and cancer we can project a life to 100 but of course that makes no sense because we can’t ignore heart disease or cancer any more than we can ignore COVID.

Even study I’ve seen says life expectancy is down due to COVID.

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

Hey LTC,

Try this one:
https://bccdc.shinyapps.io/Mortality_Context_ShinyApp/?fbclid=IwAR2Gzjo2KwDUo3huPeR-Xw1vkmwDBkX35Tfaw4S1fpUfcDM4BXFe6Ab1fXA

It is not a study, just data rep from the Left Coast.
Around here live expectancy is down more to drug overdoses than Covid.

Cheers, R

#57 Midnight’s on 12.29.21 at 9:59 pm

All things are up…
Markets sorry except for Turkey
Food prices
Inflation
Hard assets
Rent
Used Car prices

#58 Julian on 12.29.21 at 10:40 pm

So there was a formal decision to have cat pics regularly? (Nothing against cats… Just think I missed the memo).

#59 Drinking on 12.29.21 at 10:46 pm

#43 Ballingsford

Lightened up, I just like giving Felix a hard time as he/she does to canine lovers. Nope, I will stick with with my canine buds; nothing to do with which (so called) side of the tracks one comes from, whatever that means!!!

Most of the posters have have gone through hell and back!!!

I think many of us are wondering what ever happened to cold and flu season???

#60 Taco Devil on 12.29.21 at 10:47 pm

#45 Love_The_Cottage

Look, I’m not going to get into it too deeply. You know as well as I do that data can be interpreted many ways and said to tell many stories.

I will say just this to you. Italy’s crude death rate has been around 10 decades, and was in the mid 10s (10.5) almost the past 10 years. By comparison Canada’s crude death rate is 7.83, and going up from 7 just 10 years ago, which was running at that level for a long time. Obviously the population here has been getting older and more fragile, just like in Italy.

Don’t mean to hurt Dolce’s feelings, but with those Italian crude death numbers that high, it seems that maybe something in Italy is not as it appears, clearly.

#61 cuke and tomato picker e on 12.29.21 at 10:51 pm

Numbered 31 Crowed… we have plenty of RRIF money
but are shocked every year of how much tax we have to pay on it. We also have the treasured GOVERNMENT PENSIONS so we are fine but the tax we pay is very
astronomical.

#62 BlawgDawg on 12.29.21 at 11:00 pm

#52 Sail Away on 12.29.21 at 9:31 pm
#48 Ponzius Pilatus on 12.29.21 at 9:12 pm

I heard that the good people of Alabama and Mississippi still think it’s a hoax.
As for the people dying from COVID:
Blame it on the rioters and looters.
And, of course all the illegal aliens.

———-

Hardly that. I’m pretty sure barely anyone thinks Covid is a hoax, but there are a whole lot of people who think it’s no big deal. 20 years ago, it wouldn’t have been sequenced and would have been chalked up as a couple of bad flu years for the oldsters.

———-
I find it quite amusing that Uncle Garth would allow peurile comments like this to sully his blog with mis/disinformation.

In fact, a considerable number of people do think that COVID was or is a hoax. It can’t be quantified but i’m fairly certain you’d be surprised as to the percentage. And more troublesome… equating it to the flu (or cold). It may be evolving to be the case, but for tens of millions of people worldwide, it has been anything but over the last 20 months.

#63 Nonplused on 12.29.21 at 11:08 pm

“But wait. What if there’s a fat pension, like one of those gold-plated government, taxpayer-subsidized defined benefit babies? For example, with a $1 million RRSP, at seventy-two over $54,000 needs to be taken as income. So if your DB pension already pays $75,000 a year, taxable income suddenly jumps to almost $130,000.”

I thought that if you had a pension plan, DB or DC, your allowable RRSP contribution is reduced to account (roughly anyway) for the pension? If so, it shouldn’t be possible to accumulate much more in pension/RRSP benefits than someone with no pension who contributed the maximum to their RRSP every year. At least that is the way I think it works. Maybe someone with one of them fancy DB pensions can correct me.

#64 AlMac on 12.29.21 at 11:20 pm

Shawn at #47

A nice case, but I suspect that this is a tail end example. Linda was referring to a mid point of the bell curve. But the returns for that person you know of were great and she should look forward to paying tax on it.

#65 al on 12.29.21 at 11:22 pm

“Regardless of CBs taking away the punch bowl. “. LOL. I come here for the comedy.

#66 Chameleon on 12.29.21 at 11:23 pm

#57 Julian on 12.29.21 at 10:40 pm

So there was a formal decision to have cat pics regularly? (Nothing against cats… Just think I missed the memo).

Comments like this shows how discriminatory dog owners are. You can see it in behaviour too.

Letting dogs off leash in On-Leash areas, because THEIR dog is a good boy. Others be damned!

Not scooping the poop – especially in the winter.

And now, hating on a cat photos? Is this a form of speciesism? Right on this blog?

Suck it up! There are other animals, and the blog is being more inclusive. Turns out cat people have money too.

And hey, am I the only one to see all this dog sidewalk poop get way out of control? It’s everywhere. My goodness, what disgusting creatures – pooping everywhere, no discipline or training. Can you dog owners fix this issue? ASAP?

#67 Tomás de Torquemada on 12.29.21 at 11:37 pm

#51 Garth’s Son Drake on 12.29.21 at 9:30 pm

People are greedy by nature.

The failure lies with authorities who allowed: CHMC, zero rates for a very long time, tax policies that incentivize housing ‘investments’, statistics that openly lies about inflation, etc.

The result is destroyed currency, broken savers and renters, impoverishment of everyone from the general public, stolen real pensions with the joke called ‘indexing’ of benefits.

The incompetence of authoress is mind blowing while they demand respect and obedience.

The worse part is that the authorities intentionally dragged everyone into their insane policies, by leaving no other choice than to follow them or be broke.

And no, we are not in this together.

I am not paying for other people idiocies. Sorry.
Time to rock the boat. It is sinking fast lready.

#68 Ponzius Pilatus on 12.29.21 at 11:43 pm

Some posters here think that eating healthy costs more.
My family is about 80% vegetarian now.
And I did some calculations, and indeed we’re spending less on food now.
And feel healthier for it.
————————
https://www.healthing.ca/news/diets-heavier-on-plants-are-lighter-on-the-wallet-study-finds/?utm_source=healthingcontentads&utm_medium=native_ads&utm_campaign=on_network_boosting&utm_content=healthingflex

#69 Upenuff on 12.30.21 at 12:06 am

Garth, yet again sage advice. That is why we are here!

#70 Diamond Dog on 12.30.21 at 1:39 am

#28 espressobob on 12.29.21 at 6:17 pm

Absolutely right Bob, vaccines are saving our butts in a BIG way. If we look at Worldometer or John Hopkins for data, we will note that confirmed cases are exploding across the world:

https://www.worldometers.info/coronavirus/

Delta, if some might remember, was being compared to Chicken Pox, already highly infectious. Chickenpox (varicella-zoster virus) has an R-naught between 9 and 12 (most estimates start at 10). R naught is the Basic Reproduction number of infected cases by one case, definition here:

https://en.wikipedia.org/wiki/Basic_reproduction_number

From the link below in August, the current R-naught for the Delta variant was estimated between 5 and 9 but the CDC recently updated their estimate to an R-naught of 8.5. This was a substantial jump from earlier strains. Less than Chickenpox, but indicating a highly infectious variant just the same.

https://health-desk.org/articles/how-contagious-is-the-delta-variant-compared-to-other-infectious-diseases

With what few studies we have out there with Omicron, Omicron was found to be 5.4x (U.K.) and 4.2x (Japan) more contagious than Delta. This bump’s the R-naught of Omicron way up, up, to towards something comparable to the measles (R-naught of 12 to 18) which in case some don’t know, measles is the most contagious virus to humans that we know of:

https://pubmed.ncbi.nlm.nih.gov/28757186/

https://en.wikipedia.org/wiki/Measles

Now, I bring all this up because the reported cases in worldometer will keep going up, up and shock. This will freak some of us out. Now we know why. Omicron is fully airborne. Couple this with limited studies, one in particular from the Imperial College of London that looked at data and found Omicron to be 11% less severe than Delta with the unvaccinated and with demographics, there may be no difference between the 2 with the unvaccinated:

https://apnews.com/article/omicron-less-likely-to-put-you-in-hospital-ec46b4dbbf55e16b79a3c267ced6a7df?utm_campaign=fullarticle&utm_medium=referral&utm_source=inshorts

So to summarize so far, Omicron is realistically comparable to the measles in terms of contagion and may be, just may be no less mild than Delta to the unvaccinated. Isn’t it a good thing most of us are vaccinated? Without them, we. would. be. so. screwed.

What this means to the world and North American economies really comes down to vaccination rates including how well they work. The link below, I will use to flesh out some flaws one might make in the interpretation of statistics (like I did, I used this stat yesterday):

https://ourworldindata.org/covid-vaccinations

Note where the numbers are for the U.K. in link above (69 and 76%). Now note the vaccination rate reported by the BBC 6 days ago below (82 and 90%):

https://www.bbc.com/news/health-55274833

“So far, more than 51 million people have had a first vaccine dose – some 90% of over-12s. More than 47 million – 82% of over-12s – have had both doses.” – BBC

I’m pointing the U.K. out specifically, because their vaccination rate gives the rest of the world an idea of what to expect in terms of vaccine efficacy in a Northern Hemisphere nation with a high vaccination rate and so far, all things considered with studies and new information from there, it’s looking good. Hospitalizations and death rates are down or flat, Break through infections are much milder than unvaccinated infections and ICU’s aren’t overrun. But, their vaccination rates are high including their booster rate.

So, 2 things to note when looking at world wide vaccination rates online. Some are estimates and dated, and some don’t tease out the age <12 percentage of unvaccinated. This jacks the numbers of age 12+ being vaccinated "in some nations" meaning the world, in particular the western world is more vaccinated than one might think.

Having caught this error in interpretation of data, North America shouldn't slide into recession over Omicron although it may very much so appear that way with skyrocketing numbers come January.

In short, without vaccines, we. would. be. screwed. If you are reading this and you aren't vaccinated for whatever reason, remember that the junk in arms from vaccines will fade into irrelevancy. Updated vaccines before flu season depending on how mutations go, will become the norm. What doesn't fade is damage from pneumonia to the lungs. Considering how contagious Omicron is, it's a suckers bet to think that the vast majority of us won't be exposed to Covid now.

#71 Kitty Kaboom on 12.30.21 at 1:41 am

Thanks for the advice — dual DB gold-plated pensions in this house, so the advice is exceptionally relevant. Best to you and Dorothy in 2022!

#72 Faron on 12.30.21 at 2:12 am

#61 BlawgDawg on 12.29.21 at 11:00 pm
#52 Sail Away on 12.29.21 at 9:31 pm
#48 Ponzius Pilatus on 12.29.21 at 9:12 pm

You seem new here, so here’s a quick primer.

Sail Away is the seemingly intelligent one who somewhat regularly types incredibly stupid/malinformed alt-rightey things with utterly impeccable spelling. By far the lowest typo rate of anyone in steerage. He perfectly embodies the somewhat counterintuitive difference between accuracy and precision. He’s very precise — he’ll repeatedly fire a foot wide and 4 inches high of the mark in a tight cluster. Maybe his glasses are crooked?

#73 Drinking on 12.30.21 at 2:14 am

#65 Chameleon

lol, yes there are those selfish irresponsible dog owners that should not be allowed to own a dog as well as many irresponsible cat owners that allow there cats to roam free, kill birds, crap all over the place (never seen a cat owner pick up after them)touché, my grandchild who is very responsible with her pet Gerbil will allow you to pet it that is if you do not like a chunk missing out of your finger; evil little bas**rd!! :)

#74 Alfie on 12.30.21 at 3:27 am

Why do you not mention the pension adjustment for people on a DB plan? It is misleading to insinuate they can contribute the same amount as someone not on a plan.

No such insinuation. Thirty years of contributions and growth can equal a million, even for DB people. – Garth

#75 AntMan on 12.30.21 at 6:26 am

#48 Ponzius Pilatus on 12.29.21 at 9:12 pm

I heard that the good people of Alabama and Mississippi still think it’s a hoax.
As for the people dying from COVID:
Blame it on the rioters and looters.
And, of course all the illegal aliens.
—————————————————
I’m not here to bad mouth anybody (except maybe T2). Just saying how my observations don’t square with some of the more conspiratorial ideas out there.

#76 In Dog We Trust on 12.30.21 at 6:38 am

The first section of this paper reiterates my 1998 argument for credible irresponsibility and
talks about the practical difficulties of implementing that strategy. The second section talks
about the strange history of two percent — how a seemingly arbitrary inflation number
acquired such iconic status that it’s seemingly immovable, even though the quantitative logic
that originally seemed to justify it hasn’t stood the test of time. The third section is about the
downsides of revising the inflation target up. The fourth section is about the new economics of
public debt — why serious economists, Blanchard in particular, are no longer scared by
historically high debt-to-GDP ratios and why crowding-out arguments have lost most of their
force. A final section asks to what extent revisiting these issues makes a case for a fiscal as
opposed to monetary response to the low-rate problem. https://twitter.com/paulkrugman/status/1476210963875614728

#77 Blind Lemons on 12.30.21 at 7:20 am

DELETED

#78 Dharma Bum on 12.30.21 at 7:45 am

#40 Balllingsford

Didn’t have to finance anything. Including the 75″ TV in family room. That’s only one of 4 TVs we have, wall mounted, no wires showing for all of them.
——————————————————————————————————-

So…whaddaya watchin’ these days?

Netflix?

Meh.

HBO?

Not bad. Some good documentaries, and a few really good series.

Other than that, I find that the best stuff is what you can find on youTube podcasts.

Easy to spend hours going down the rabbit hole.

It would be glorious in 75″ screen splendour.

#79 Dharma Bum on 12.30.21 at 7:51 am

#46 Unpinned

Jimmie Dean bacon at $12.00 per pound at the local Publix and a six pack of bagels for $5.00.
——————————————————————————————————-

Whoever said that theres a lack of diversity in the American South!

Bacon and Bagels. Now THAT’s progress!

#80 Ballingsford on 12.30.21 at 8:33 am

#77 Dharma Bum on 12.30.21 at 7:45 am
#40 Balllingsford

Didn’t have to finance anything. Including the 75″ TV in family room. That’s only one of 4 TVs we have, wall mounted, no wires showing for all of them.
——————————————————————————————————-

So…whaddaya watchin’ these days?

Netflix?

Meh.

HBO?

Not bad. Some good documentaries, and a few really good series.

Other than that, I find that the best stuff is what you can find on youTube podcasts.

Easy to spend hours going down the rabbit hole.

It would be glorious in 75″ screen splendour
****
It is nice. I’m a documentary type of guy and like action movies. Plan to watch the new James Bond on it New years eve.

Figured out how to pair my phone to the TV, so what I can watch on my phone I can cast it to the TV.

#81 Ballingsford on 12.30.21 at 8:39 am

#58 Drinking on 12.29.21 at 10:46 pm
#43 Ballingsford

Lightened up, I just like giving Felix a hard time as he/she does to canine lovers. Nope, I will stick with with my canine buds; nothing to do with which (so called) side of the tracks one comes from, whatever that means!!!

Most of the posters have have gone through hell and back!!!

I think many of us are wondering what ever happened to cold and flu season
*****
I like Felix too and also give him/her a hard time too. Felix is colorful.

The other side of the tracks, is a phrase used to describe ones upbringing/social status. The poor people lived on one side of the train tracks and the rich people lived on the other side.

I’m old, and you must be a bit younger to not know what that means.

#82 TurnerNation on 12.30.21 at 9:40 am

#44 AntMan on 12.29.21 at 8:43 pm – come to Southern Ontario or Quebec.
We are in an open air prison – this close to total lockdown. The downtown streets, businesses are empty.
It will be getting worse in January.

.Quebec will Reinstate Curfew Report Says(montrealgazette.com)
https://montrealgazette.com/news/local-news/quebec-will-reinstate-curfew-as-omicron-cases-soar-report-says


— The schools are being closed in Jan – in most provinces. Now you know what the Metaverse is created for. All youth in front of screens. Those going to class will anyway face punishing protocols.


The engineered Economic Shutdowns. See how the game is played lads.

.UK: NHS announces Covid Nightingale ‘surge hubs’ to deal with Omicron wave (msn.com)

Ahem:

https://www.bbc.com/news/health-56327214
“Covid-19: Nightingale hospitals to close from April
Published 8 March
The network of emergency Nightingale hospitals set up to cope with a surge of Covid-19 cases is to close from April, the NHS has said.”

— 2022 – almost back to normal guys! So close.
290 cases and one death in a city of 19 million population = Curfew to keep them healthy.

.Night curfew from 11 pm to 5 am imposed in Delhi amid rising Omicron cases (indiatvnews.com)

.France Bans Cinema Concessions For 3 Weeks As Part Of New Covid Measures(deadline.com)

#83 truefacts on 12.30.21 at 9:41 am

Garth, for clarity – what is considered anti-vax?

All I did was submit Covid case data reported by CTV news…a reputable source, no?

Your sole intent is to discredit public health measures and cast doubt on the validity of vaccination. Thereby you are helping extend this pandemic because you are a selfish coward. Be gone. – Garth

#84 bdwy on 12.30.21 at 10:14 am

Your sole intent is to discredit public health measures and cast doubt on the validity of vaccination.
————————

i’m not anti vax, but science that cant be questioned is not good science.

when we were promised 95% protection it was explicitly for getting the covid, never for prevention of serious illness. they missed by about 94% on that prediction.

https://www.google.com/imgres?imgurl=http%3A%2F%2Fcdn.statcdn.com%2FInfographic%2Fimages%2Fnormal%2F23510.jpeg&imgrefurl=https%3A%2F%2Fwww.statista.com%2Fchart%2F23510%2Festimated-effectiveness-of-covid-19-vaccine-candidates%2F&tbnid=oosCkno7hbdelM&vet=12ahUKEwjwyJHw54v1AhX_qnIEHdEhCqsQMygBegQIARB-..i&docid=KPT6Cqj8MQhKCM&w=1200&h=1200&itg=1&q=vaccine%20efficacy&ved=2ahUKEwjwyJHw54v1AhX_qnIEHdEhCqsQMygBegQIARB-

yet we must put full faith in todays ‘predictions’?

#85 Millennial 1%er on 12.30.21 at 10:22 am

one problem garth… both TFSA and RRSPs are maxed.

#86 Satori on 12.30.21 at 10:26 am

#90 Sail Away on 12.29.21 at 1:23 pm
#87 Habitt on 12.29.21 at 12:34 pm

Some poster suggested Order of Canada for our host. Couldn’t think of anyone more deserving than Mr Turner. Thanks for including all income level folk here. The lower the income the more advice is needed.

———-

It is easy to submit the Order of Canada nomination. Anyone can do it:

https://www.gg.ca/en/honours/canadian-honours/order-canada/nominate-someone

Maybe the many one-time commenters adamantly opposed to comments but in love with Garth’s sagacity can do something useful by releasing their pent-up words on nomination forms?
_________________

Super idea!!! Lets ALL do it!!! :D

#87 Taco Devil on 12.30.21 at 10:42 am

Your sole intent is to discredit public health measures and cast doubt on the validity of vaccination. Thereby you are helping extend this pandemic because you are a selfish coward. Be gone. – Garth

I put to you that public health measures have been misguided, have caused harm, in many cases very significant and long lasting harm.

I put to you that this has been specifically clear as it relates to Long Term Care homes, those most at risk and of course in exposing our underfunded hospitals. Fascinating how little of the $400B went to any sort of long lasting improvements there.

I fail to see how criticizing this or them is any less valid than criticizing any of our so called political leaders.

#88 Chameleon on 12.30.21 at 10:49 am

#73 Drinking on 12.30.21 at 2:14 am

Drinking,

I’m not going to argue anything you say. It is clear that pet owners are some of the most obvious animal abusers, owning pets for their own pleasure, buying them like iPads from those selling them for profit.

At one point I considered owning a chameleon, as they are magnificent. Then I learned how inhumane that would be the the animal and how it would support the industry. And so, not every want needs to be fulfilled. Seems humanity has little discipline on this consumption point.

Thus the unfortunate behaviour we describe, not the fault of the animal but fully the fault of the animal loving pet owners.

#89 crowdedelevatorfartz on 12.30.21 at 11:08 am

TONS of snow in Burnaby this am.
Light, fluffy, easy to shovel….snow.

Amusing commute this am.
A dorkus malorkus went zipping past me in a VW station wagon ( yes I had to do a double check … a VW station wagon) and not 3 minutes later I passed him…. in the ditch.

The Lower Brainland never ceases to amaze and stupefy.

#90 Russ on 12.30.21 at 11:11 am

Faron on 12.30.21 at 2:12 am

… between accuracy and precision. He’s very precise — he’ll repeatedly fire a foot wide and 4 inches high of the mark in a tight cluster. Maybe his glasses are crooked?

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

Hey Faron,

Does Sail Away always placed it to the right of bullseye, when viewed from an onlooker’s perspective?

Cheers, R

#91 millmech on 12.30.21 at 11:12 am

Not to hard to drop the tax down, invest with a HELOC, LOC, margin and make sure that interest paid is equal to taxes paid on RRSP withdrawals.
Start a consulting/service business to have the same effect, most of these go bankrupt in under seven years so no questions are raised if business is shut down and another venture started.

#92 Ponzius Pilatus on 12.30.21 at 11:29 am

#87 Taco Devil on 12.30.21 at 10:42 am
Your sole intent is to discredit public health measures and cast doubt on the validity of vaccination. Thereby you are helping extend this pandemic because you are a selfish coward. Be gone. – Garth

I put to you that public health measures have been misguided, have caused harm, in many cases very significant and long lasting harm.

I put to you that this has been specifically clear as it relates to Long Term Care homes, those most at risk and of course in exposing our underfunded hospitals. Fascinating how little of the $400B went to any sort of long lasting improvements there.

I fail to see how criticizing this or them is any less valid than criticizing any of our so called political leaders.
————————
Most countries the world (even tiny and always prepared Israel) were overrun run by the virus.
You might as well criticize the rain for being wet.
Politician of all stripes are in charge, some do better, some do worse.
I believe we have some of the better ones here in BC.
So critic all you want, it’s a free country.
But get vaccinated, wear a mask and help out if you can.

#93 Ponzius Pilatus on 12.30.21 at 11:35 am

#89 crowdedelevatorfartz on 12.30.21 at 11:08 am
TONS of snow in Burnaby this am.
Light, fluffy, easy to shovel….snow.

Amusing commute this am.
A dorkus malorkus went zipping past me in a VW station wagon ( yes I had to do a double check … a VW station wagon) and not 3 minutes later I passed him…. in the ditch.

The Lower Brainland never ceases to amaze and stupefy.
—————————-
Yeah,
Winter Wonderland, just like in Austria.
The German drivers are crazy, they are used to the Autobahn.

#94 Ponzius Pilatus on 12.30.21 at 11:46 am

#92
And be glad you don’t live in China.
“parade of shame” for COVID rule breakers.
https://www.spiegel.de/panorama/coronavirus-china-demuetigt-oeffentlich-corona-regelbrecher-in-jiangxi-a-7669f498-86bc-4975-ab8c-256d701b97b0

#95 bdwy on 12.30.21 at 11:57 am

wife tested positive a week ago, got it at a party the weekend before.

daughter positive last thursday. (both slight sore throat)

been trying to catch it myself for 10 days now, no luck. full contact, cuddling, kissing, heck i even wore her mask in a pinch. trapped in a smaller house in yvr freeze up so together nearly 24/7.

i dont ever get colds so this is not a surprise to me.

just want the positive pcr paper for easier travel.

#96 Sail Away on 12.30.21 at 12:28 pm

#90 Russ on 12.30.21 at 11:11 am
Faron on 12.30.21 at 2:12 am

… between accuracy and precision. He’s very precise — he’ll repeatedly fire a foot wide and 4 inches high of the mark in a tight cluster. Maybe his glasses are crooked

———

Does Sail Away always placed it to the right of bullseye, when viewed from an onlooker’s perspective?

———-

Well, I do have a bit of trouble with an irritating and uncontrolled jerk radically left of center.

#97 Sail Away on 12.30.21 at 12:35 pm

#86 Satori on 12.30.21 at 10:26 am
#90 Sail Away on 12.29.21 at 1:23 pm
#87 Habitt on 12.29.21 at 12:34 pm

Some poster suggested Order of Canada for our host. Couldn’t think of anyone more deserving than Mr Turner. Thanks for including all income level folk here. The lower the income the more advice is needed.

———

It is easy to submit the Order of Canada nomination. Anyone can do it:

https://www.gg.ca/en/honours/canadian-honours/order-canada/nominate-someone

Maybe the many one-time commenters adamantly opposed to comments but in love with Garth’s sagacity can do something useful by releasing their pent-up words on nomination forms?

———

Super idea!!! Lets ALL do it!!! :D

———

I’m game. Now to find three sober and accomplished references.

Maybe crowdedelevatorfartz, I’m Stupid, and Shaquille Oatmeal?

#98 truefacts on 12.30.21 at 12:44 pm

DELETED

#99 James on 12.30.21 at 1:05 pm

When someone posts facts Garth doesn’t like, they are a ‘selfish coward’? Talk about projection.

Nope. Just the anti-vaxers who are, you know, selfish and cowardly. – Garth

#100 CHERRY BLOSSOM on 12.30.21 at 1:29 pm

I am confused about the amount we can contribute to our TSFA. I know the baseline is $6,000 but it is supposed to be tied to inflation which is 4.8 Really it is about 15%. So do you think they will increase the contribution amount by the inflation number?? Do you know when the next time they will give us a read on inflation numbers??

#101 Wojech on 12.30.21 at 1:38 pm

Gic rates are 0% to below inflation returns but like my father would say, savings no matter how much and savings that keep building, growing are still savings.

I know my father and my mother to a lesser extent is savings obsessed and has managed to save $450,000 in their multiple amounts in their GIC, RRSP, spousal RRSP, TFSA, 100% equity in the 3 bedroom house paid off in Ajax, have no debts for years and a $800 a month annuity from 2007 at 8% payout rates for 25 years, $175,000 life insurance policies for each until ages 90.

All this done with only my father working for 2 to 3 very physical, modest to lower paying jobs working 50 to 60 hour weeks since my parents married at 20 years old, immigrated from Poland. He is finally retired in 2019 and getting his CPP, OAS this year at 65 $1,400 a month.

The real negative returns are from selling your house back to the lender, reverse mortgages, being in deep debt, credit cards, payday loans, car loans, lines of credit etc. and having no savings, investments, assets that generate even 2.5% to 5% annual interest, returns and so on. Interesting how many people in Canada got lured in the cheap money, easy money, low interest rates, debt trap for since 2009.

#102 PeterfromCalgary on 12.30.21 at 1:39 pm

Leverage is great rates are low and prices rise but it can make a decline in prices worse when rates rise.

You can borrow 95% of your home’s value for a mortgage but a margin account generally only lets you borrow 50% of a stock portfolio’s value.

I think this means houses are at greater risk with rising interest rates than stocks.

#103 Shawn on 12.30.21 at 2:03 pm

A Pyric RRSP tax victory?

#91 millmech on 12.30.21 at 11:12 am

Not to hard to drop the tax down, invest with a HELOC, LOC, margin and make sure that interest paid is equal to taxes paid on RRSP withdrawals.

***************************
So borrow money and invest at a loss after paying the interest in order offset the RRSP income? And the more interest I pay the better it works? No thanks, I will just pay the tax.

Let’s say the investments break even because you invest for capital gains and don’t realise any. So far so good. How much interest to offset $54,000 in RRSP income from the million dollar RRSP?

(The interest has to be equal to the full RRSP income, not just the tax paid).

Right $54,000 in interest. At 3% just need to borrow let’s see, $1,800,000! Hilarious.

Even to offset $10,000 RRSP income at 3% interest you need to borrow, $333,333! Again, hilarious, crazy solution.

Just pay the tax and be glad you have the income that requires the tax.

#104 Sail Away on 12.30.21 at 2:51 pm

#103 Shawn on 12.30.21 at 2:03 pm

Re: RRSP and DB pension distribution taxation

Actually, Shawn, the best way to go about it is probably to become a US tax resident at retirement and offset US taxes with tax credits from the Canadian stuff. Scrumptious.

#105 Jake on 12.30.21 at 4:29 pm

Wojech, I can understand how your parents coming from Poland had to be think more about security, safety as people’s life experiences often shape their perspective on life. The time they came interest rates were probably much higher than today, 5% to 6% back in the mid 60’s to start. However, I have a young son and he is starting to save at age 15 now with some of his money he earns from some part-time jobs. He basically is buying Canadian bank shares and doing dividend reinvesting, has $6,200 now and hopes to grow that to minimum $25,000 by his 20th birthday. I do understand though that savings even if the returns are not that high with interest rates right now are still lower than many years back are still savings, today’s highest I could find 2.70% to 3.0% 5 year GIC’s if you shop around. I do think they will be 3.5% to 4.25% in coming years. Paying off debt and limiting debt to as low as possible is already a big head start. Getting addicted to debt and financing your lifestyle too much can really destroy your future as it gets out of control and eats up all your future potential earnings, savings. This is a very good lesson and wise that your father has taught you.

#106 confusedMill on 12.30.21 at 5:59 pm

#33 Ballingsford on 12.29.21 at 7:14 pm

#27 confusedMill on 12.29.21 at 6:17 pm
What to do with down payments saved in cash.
*******
Buy your house with it.

Or, if you dont have enough yet, invest it in something where you get some return like an ETF in a TFSA.

Are you new here?

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

Some context:
– All registered accounts are full and invested
– Likely not buying for a year or two

What does one do in that scenario? If you’re about two-three years from purchasing is it worth risking investing that money?

#107 Drinking on 12.30.21 at 8:45 pm

#81 Ballingsford

Yes, I am very aware of the term but it really does not reflect on this blog due to most of us doing what needed to get done to move forward. I guess I am one of those that came from the other side of the tracks but I hate that terminology, if you want to succeed; one can, and I do not mean it to be about strictly money!!!

#108 Drinking on 12.30.21 at 8:49 pm

#88 Chameleon

We both agree that there are responsible and irresponsible pet owners out there. Personally I am fond of all animals out there but not so much the irresponsible owners of some..

#109 jane24 on 12.30.21 at 11:45 pm

Getting close to 200,000 cases a day now in the UK and the pubs, clubs and restaurants have no restrictions in England but closed down in Wales and Scotland. The result is that the Scots and Welsh are pouring into England to celebrate NYE tonight. English govt are going for a strategy of herd immunity for sure. But that will only be good till the next variant arrives in a few months from our mostly unvaxed world. Few countries have the resources and money to issue 4 vaccinations a year but these people are still traveling.

Friend is a ICU Dr and he says that all his beds are taken by covid guests and they are all non-vaccinated. Both he and his nurses are steaming angry at the selfishness of these people.

This is turning into a shit retirement.

Happy New Year boys and girls.