I am confident that you don’t hear it , but thank you for blogging daily and for assisting us small men understand the world a bit better. It truly is appreciated, whatever the outspoken crew state in the comments.
Secondly, this is the ideal use of a LOC. It costs nothing to place one up, nor are there recurring charges to keep it in place. The rate of interest charged on outstanding balances is insignificant since this is money for an emergency that will never occur. If it did, then (as the dude said) merely sell off an advantage and cover it back. The secret is to maintain your funds working at all times, secure in the knowledge that when an asteroid did hit your house you could just write a cheque.
In the event of a serious emergency, for example extended job reduction, I can only immediately use my LoC as required, then if more months go by, withdraw some RRSPs at $5 a transaction. Why would any sane Canadian retain such big emergency cash reserves, unless they don’t have any LoC and no fiscal portfolio to fall back on? Are I the crazy one loosing touch with reality ?
Oh boy I had been downvoted and ripped apart by ignoring that financial gospel and arm-chair internet fiscal specialists. My reasoning was crazy, irresponsible and, gasp, reckless!
It didn’t work.
As predicted. Should you have ETFs pacing the Dow, the S&P 500 or the Nasdaq, you’re a happy camper. And there is more to come, it appears.
Do not believe me?
Last week we heard from a range of courageous Blog Dogs that took up the struggle to share a post . Most of them were mercilessly skewered in a pique of unbridled cannibalism with their fellow deplorables. We may do this , but maybe not soon.
Alright, Jake. It’s possible to rejoin the pack. On your place.
Loans are a gift, costing barely more than inflation. Borrowing money to buy something, of course, creates debt. But arranging to borrow in the event you need the money costs nothing.
That is exactly what emotion does. It steals your cash.
This is worth mentioning in light of the encounter one regular reader only had after being savaged by the nimrods on Reddit.
I think that the Blog Dogs section should continue, allowing others to experience the steerage section feedback. As a”snowflake millennial” (I believe that is what I heard some wrinklies telephone us another day) it is a good practice to create tougher skin. I can not say I am utilized to being bashed so economically, so maybe I need to offer more comments in order to develop a thicker skin.
Not a week passes, it seems, without BC politicians trying to push public opinion into a xenophobic stupor. This time is was’information’ the ill-named speculation tax (on people with second properties) increased more money from offshore owners and’satellite’ families compared to, say, Albertans. Obviously, the spin was large, but the numbers weren’t. Both the spec tax along with the empty homes tax in Van are high profile (because of their random unfairness) but unworthy. It was not Chinese dudes who goosed prices in Vancouver or Toronto to historic high levels. Instead it was historic low rates of interest, which caused Canadians to borrow an historic amount.
Why homes go up
This doesn’t imply that the second half of this year will replicate this, needless to say. But it does mean those who bucked the information here last fall and sold to some storm were fools. At the time I chronicled a few of these — people who ignored my pleadings and ran to the leaves, turning paper losses into real ones. So while prudent portfolios have given low-taxed, double-digit returns, they are parked big money in low-yield GICs ravaged by inflation and fully taxed.
After my opinion was shared Friday, the steerage section definitely rose to the occasion – celebration the uneducated for having an opinion! I am curious to see what the deleted comments had said… maybe it is better that I do not understand. It was a rather humbling experience, and something I had not really thought before: you set up with that crap on a daily basis, and have done for years.
First up is a follow to yesterday’s hectoring article which advised you to stop attempting to time the markets, shut up and only spend.
Not loco in any way. Firs, individuals who assiduously maintain an’emergency fund’ realize after a couple of decades that an emergency never occurs. It is a fantasy for most people. So sitting on tens of thousands making nothing — and ending up spending it on new and shoes taps — is not any way to achieve financial freedom. In case you have cash, invest it. Do not save it. And particularly in something as idiotic as a’high-interest’ bank account.
While an economic slowdown at some point is inevitable, the best strategy is to ignore it unless the portfolio’s peppered with individual stocks, lacks varied fixed income resources or isn’t global. Review the weightings listed here. They work.
The Dow hit a few highs this week, also stays 17% over its level of just six months ago. The return over a year is 12%, and that takes into consideration that the 20 percent rout in the end of 2018 which had the steerage section shifting its Depends every couple of hours. The S&P is much more dramatic so far in 2019 — ahead 20%. Bay Street is struggling with these flaky weed stocks and wonky petroleum, but has additionally rewarded investors with a 15% yield. Preferreds are up about 3% in a month, and pay a dividend (tax-efficient) of almost 5 percent. Even pitiful government bond ETFs have contributed roughly 4 percent so far in 2019. Overall, a balanced portfolio is ahead about 10%.
Often $15,000 to $20,000 or more for 3-6 months of living expenses just sitting at a HISA making less than the speed of inflation, when an LoC may be used instead?”
“You asked today whether or not the Vox Canibus must last,” he says. “I’m going to vote yes, but not because of what folks are submitting, but instead because of the experience.
Perhaps my next 500 word essay should be on what is right with the world – people like Garth who put up with commenters in order to instruct and inform those people who want it. At least I would know my opinion was correct that time (it definitely wasn’t on Friday).