Weekend Reading
Happy 150 Canada! You look beautiful! I hope whatever you have planned this Canada Day weekend you enjoy it with family and friends – there are celebrations everywhere to get out and enjoy.
Enjoy these articles this weekend wherever you are and see you here again next week.
Mark
My articles from the week:
Some right, some wrong – my 2017 Predictions – June Update.
Blogger, economist and fan of this site wrote about The Real Reasons Why You Are in Debt.
Thanks to this special offer from Virtual Brokers you can own low-cost ETFs – for less.
Other fine reads:
My friends at ModernAdvisor told us fund fees remain an accurate predictor of future fund returns. Meaning, the lower, the longer, the better.
John Heinzl is still waiting for his perfect dividend ETF to be constructed.
Macleans magazine wrote that Canadians are world-leaders at piling up debt.
What will your retirement look like? I shared some ideas of ours here.
Million Dollar Journey provided a breakdown of his expenses in 2016. I like his idea of buying a newer (and not a new) car. He wrote “a high-quality three-year-old SUV for about half retail price (with cash so no financing charges).” Seems smart and we’re trying to save up for our own newer car in 2018.
Canadian Mortgage Trends said Canada is not alone in house pricing mania.
A reminder to check out the updates to my Deals page where you can save hundreds or even thousands of dollars over years of investing thanks to my partnerships.
Boomer & Echo shared an impressive mid-year review.
LowestRates.ca reported many Toronto homeowners are spending a ridiculous amount of their income on housing.
Barry Choi doesn’t believe in extended warranties.
Big Cajun Man reminds you that RESPs and high mutual fund fees don’t have to go together.
Tawcan shared his Canada Day edition.
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
re: Toronto homeowners are spending a ridiculous amount of their income on housing.
Analysis has shown that Calgary is actually the most expensive city for housing costs…if you are poor, with up to 65% of income spent on housing. The calculations in the posted article are non-real aggregates, meaning exceptionally few, if any, average income families are actually spending 70-80% of income on housing.
re: Canada is not alone in house pricing mania.
“…gains over the last four years…66% in Australia…” Yes, much better to spend 80% of your income on a massively over-priced house rather than enjoy a delicious avocado toast (and latte!) with your happy debt-free mates.
re: The Real Reasons Why You Are in Debt.
“Don’t borrow piles of money to buy a depreciating asset – that’s a double whammy.” Yeah…you just described a mortgage. A share of a company (stock) is a perpetual asset; a house, upon completion, begins to depreciate (aka crumble). I wonder why so few people fail to admit this fact (better to live the dream, I guess).
re: Canadians are world-leaders at piling up debt.
Interesting to see we are in it deeper than PIGS (Portugal, Italy, Greece, Spain), who were all on the brink, or worse, of disaster not too many years ago. Another interesting point being, “In effect, Harper may have balanced the budget by pushing the burden onto households.”
re: an impressive mid-year review.
“The two major measuring sticks I’m using for my longer-term planning are:
$1,000,000 net worth…The million-dollar milestone is just that, a post I’m trying to hit on the way to financial freedom.”
Interesting to note that a lot/most PF bloggers use the million dollar *net worth* target, instead of an ‘investible asset’ measuring stick. Ask any of those Vancouverites with a 75%-of-income/$1.2 million house net worth if they have financial freedom. Net worth is somewhat of a delusion. Secondly, as I’ve written before, ~80% of actual millionaires are hovering around the $1 million mark. As we all know, a million ain’t what it used to be, but for some reason it still hangs onto its social stigma. For instance, 50 years ago, having a million dollars was a very big deal; today, you would need over $7,000,000 for the same effect. It’s the other 10% of calculated millionaires who are the real millionaires (read The 1%).
re: Canada 150
It is a lot longer than 150 years; it’s only 150 years of colonialism/Confederacy. As recent uncoverings have shown, “Canada” is ~14,000 years old. The indigenous/First Nations people had a vibrant economy (et al) in place by the time the Europeans showed up. But yeah, 150. Woot.
Off to celebrate another long weekend with a 5,000 vertical metre ride (Mt. Everest is 8,800m…ouch).
re: The Real Reasons Why You Are in Debt.
“Don’t borrow piles of money to buy a depreciating asset – that’s a double whammy.” Yeah…you just described a mortgage. A share of a company (stock) is a perpetual asset; a house, upon completion, begins to depreciate (aka crumble). I wonder why so few people fail to admit this fact (better to live the dream, I guess).”
How true. Makes me wonder, sometimes, even with registered accounts near maxed out if we shouldn’t be investing in a taxable account. Oh well, I figure killing mortgage debt is still a smart thing to do.
Only 150, seems a lot longer. anyway Happy Canada Day to all !!
Wishing you and your readers a happy Canada Day in this special year.
Ours is a great country that we have much to be grateful for. Now if this rain would just stop it would be easier to enjoy the day!!
The last 4 cars I’ve bought have been 1-2 year old vehicles at significant discounts. You’re smart to seriously consider this route. The red one you’ve seen was 20 mths old when purchased and 55% off the new price.
That’s a nice red car!
I will do my best to pursue that strategy (re: buy 1-3 years old, pay <40% off MSRP).