Drive until you qualify?
In B.C that means keep driving until you see the shiny Welcome To Alberta sign…
M49BC
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
“Canada’s most affordable city is in Ontario and here’s how much you need for a house
1. Thunder Bay, Ontario
2. Saint John, New Brunswick
3. Red Deer, Alberta
4. Trois-Rivières, Quebec
5. Edmonton, Alberta
6. Regina, Saskatchewan
7. St. John’s, Newfoundland
8. Quebec City, Quebec
9. Sherbrooke, Quebec
10. Winnipeg, Manitoba
11. Fredericton, New Brunswick
12. Saskatoon, Saskatchewan
13. Windsor-Essex, Ontario
14. Charlottetown, P.E.I.
15. Gatineau, Quebec
This is calculated using provincial median total household income data, city-level aggregate home price data, and a three-year fixed-term loan at 5.71%, amortized over 25 years with a 20% downpayment.
“There’s an old saying in real estate, ‘drive until you qualify.’ As housing affordability continues to deteriorate and Canadians face increasingly higher barriers to entry when buying a home, this adage is becoming more of a reality,” said Karen Yolevski, COO of Royal LePage Real Estate Services
Buy…..then sell ….just time it right….
N/C
=======================
BMO apparently has large exposure to transportation sector…mostly financing trucking.(Took this over from GE Capital
….and its tanking)
Great advice Sinan, the word Mutual means agreed between two parties or more, case in point— Mutual Fund’s are a perfectly example, both parties agreeing to Accept & Pay higher rates, a Quick Look in the mirror will ghost the Sucker stamp on the client’s forehead.
If it’s not ETF’s, it’s not experienced long term investing.
Quote of the day: understanding all fees before you are brought to your knees.
Good topic Sinan!
Liberals BUTCHER Golden Opportunity for Canada’s Pension Plan
https://www.youtube.com/watch?v=sX0JQGueJbI
Mediocrity – The Canadian Way.
That 0.1% really adds up eh? Billions.
All the Trump haters.
You attack the man (an easy target), but few voting for him have any illusions as to his character, there is a movement afoot, Rejectionism.
Trump is a middle finger to the US establishment. A rejection of the Red Tie-Blue Tie consensus. For some he is a “Burn it all Down!” candidate. The court cases and legal warfare is just a sign to them that Trump is “over the target” and the system is nervous.
Their empire, characterized by Military/Industrial/Corporate/Surveillance, is corrupt, and so far from many vision of their founding Democracy that they want radical change. In a two party system Trump is all they got.
Even in Canada, don’t mistake the rejection of Trudeau and their ideology as an embrace of Poilievre.
I can’t understand the Left’s blind spot with Trump. In 2020 Biden and his party had every opportunity to mollify the weak Trump support but nope and because thye lack such wisdom….Trump may come back.
“Trump did not bring division. Division brought Trump. If you don’t see that, then you’re part of the problem.” – Ryan Fournier
“More than 70% of Canadians currently employed will not have employer pension plans when they retire so it is up to themselves to save and invest in their own personal pension plan.”
+++
An excellent reason to stuff the RRSP first ( for the juicy tax deduction)…the TFSA second( for the juicy tax free status)….and the FHSA ( if eligible) ( for the juicy tax deduction ) third.
30+ years later …… with time and patience as your friend…..
A big fat wad of retirement dough to comfortably retire on….
OR you can go get a tattoo and maybe stuff the rest of your loonies in a mattress.
Are you beginning to get it yet Quinty?
Yes, thanks primarily to central bankers crazy and irresponsible money printing passive investment beats active in the last 15 years.
Until it does not.
Hey, even gold is up over 800 % in 2 decades. Actually it is currencies that are down. More of that to come.
Holey Moley!
The 5th & 6th paragraphs say it all and in my opinion highlight one of Canada’s biggest problems. An ever increasing, expensive and inefficient civil service that seems all too ready to take a victory lap for their under performance.
Coyne’s column came out and their has been nothing more said since.
Thanks for highlighting the obvious again Sinan.
Good fact based lecture Sinan.
Photo of Swifties?
I gave her 15 minutes of consideration on You Tube last night.
Dan Quail was no JFK.
Taylor is no Joni Mitchell, Carol King, or Judy Collins.
College girl fan base music genre ain’t what it used to be!
Sinan, excellent post. Thank you.
Am I reading this correctly? From 150 staff members up to 2,100 in nine years, with an average annual wage of $500K? And the fund lost 0.1% with all the “work’?
My jaw is on the floor. My wife if right…. we live in a banana republic without the palm trees.
“it begs the question of why the country’s largest pension fund, continues to disregard the reality that the high cost of active management is detrimental to long term performance.”
Sinan : You answer the question in the earlier paragraph:
CPP “boasts more than 2,100 with compensation across all its staff averaging more than $500,000 per year.”
“Connected” scions of our ruling class.
Hopefully Daniel Smith will get Alberta out of this typical example of Canadian performance and “accountability”.
I am a Turner Investments client and they do a great job of looking after my interests. However I would point out that TI do use some active funds in the portfolio. They also employ top down economic and technical analysis in their decision making. So it isn’t 100% indexing.
There are times like 2022 when no strategy is going to work out and you just have to hang on.
Thanks for the blog Garth
Thanks for the post Sinan
I read the 12 page summary
https://www.cppinvestments.com/wp-content/uploads/2024/05/CPP-Investments-F2024-News-Release.pdf
I am confused it stated CPP made 8 percent last year?
The Fund returned a 10-year annualized net return of 9.2%.
3.5 billion in fees is allot but on 632 Billion is it?
Cheers
Thanks Sinan, important topic.
At one of the Berkshire AGMs, a question was asked by a pension fund manager and Charlie said there is no incentive for pension fund managers to do well- just collect their fee and stay as stable as possible so as to not lose money.
Here, with the CPP, it appears the managers in their wisdom are treating it as a bar of soap and reducing its size with overly-excessive handling- and appointing all their friends to do the same.
Never trust government.
#13 Dogman01 on 06.02.24 at 11:41 am
Hopefully Daniel Smith will get Alberta out of this typical example of Canadian performance and “accountability”.
=======================================
Daniel Smith will make CPP’s losses look like chump change.
That CPP intel is frightening. From about 150 employees to 2100 while collecting fat paycheques for poor performance. Kinda sums up the govt.
Aren’t most pension funds also invested in not only stocks but CRE and PE? I imagine they’d be taking a bath on some of those?
@#12 Pilot
“Am I reading this correctly? From 150 staff members up to 2,100 in nine years, with an average annual wage of $500K? And the fund lost 0.1% with all the “work’?”
+++
Just a typical day in the Liberal “bloat” machine.
Vote accordingly.
“How much are Canadians paying for this active management? In 2006, the CPP Fund had a reasonable 150 employees and today boasts more than 2,100 with compensation across all its staff averaging more than $500,000 per year. The funds 5 highest paid employees are now paid nearly $4 million per year. Fees paid to external managers totaled $36 million in 2006 and are anticipated to total approximately $3.5 billion in 2024. Total fund expenses are now anticipated to be more than $5.5 billion per year. Since 2006, fund expenses have totaled over $46 billion.“
———————————————-
The above paragraph is absolutely horrifying.
So, now we know that FURZ has stashed away 700k in an RRSP.
But he’s always bragging that he’s worth a couple of mil.
Just wonder where he put the 1.3 mil.
Cash under the mattress?
Curious minds wanna know.
Selecting broad based ETFs/Index Funds and then rebalancing every year or two is all that is required.
Laziness, bordering on sloth for an investing strategy, seems to work out the best mathematically.
#1 Flop… on 06.02.24 at 10:47 am
Drive until you qualify?
In B.C that means keep driving until you see the shiny Welcome To Alberta sign…
M49BC
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
“Canada’s most affordable city is in Ontario and here’s how much you need for a house
1. Thunder Bay, Ontario
2. Saint John, New Brunswick
3. Red Deer, Alberta
4. Trois-Rivières, Quebec
5. Edmonton, Alberta
6. Regina, Saskatchewan
7. St. John’s, Newfoundland
8. Quebec City, Quebec
9. Sherbrooke, Quebec
10. Winnipeg, Manitoba
11. Fredericton, New Brunswick
12. Saskatoon, Saskatchewan
13. Windsor-Essex, Ontario
14. Charlottetown, P.E.I.
15. Gatineau, Quebec
——————
If a dude compares local house prices with local median incomes (instead of the Provincial median), you’d get a totally different list.
For instance, Red Lake Ontario median household income was 111K (in 2021), and median house prices seem to be sub-200K.
There are some real gems out there – for those cut from the right cloth.
Two thoughts:
1. It’s about risk-adjusted returns, not absolute returns.
2. The operating expense situation is worse than described when you consider that Canada has multiple public pension fund managers all doing the same thing. No reason why we need CPP as well as Teachers, PSP, etc
#20 crowded
“Vote accordingly.”
I’ve tried a few times, but I always seem to be on the losing side lately. Common sense is hard to find some days. Hopefully not next time… Federally or in BC.
Also slight correction in my earlier post… should have read 18 years, not nine. The story had me rattled and the Republica Coffee was killer.
#20 crowdedelevatorfartz on 06.02.24 at 12:05 pm
@#12 Pilot
“Am I reading this correctly? From 150 staff members up to 2,100 in nine years, with an average annual wage of $500K? And the fund lost 0.1% with all the “work’?”
+++
Just a typical day in the Liberal “bloat” machine.
Vote accordingly.
—————
I barely get a week where I don’t learn of another Liberal disaster.
It’s going to take a very long time to fix all this.
91 Dragonfly – good rebuttal
92 Sailo – good explanation, thanks!
The third bullet point in your concluding section is the most significant for most retail investors:
‘High costs – the average Canadian mutual fund still costs ~2% per year which is far too high relative to ETFs which cost significantly less’
I remain astonished at the ignorance of friends towards their own investments and the inertia preventing people from firing their “advisors”.
It’s mind blowing, the ridiculous pop culture garbage and programming propaganda (TV, computer phone pop-ups, messages from bot/strangers) influencing people at the expense of taking the time to mange their own prosperity.
Thanks for the message. I’ll try to spread it to friends. I predict that the G & M’s exposure of the corrupt, shameless CPP welfare -for-the-rich government make- work program won’t change a damn thing.
#1 Flop… on 06.02.24 at 10:47 am
Drive until you qualify?
Happy Sunday Flop, did you get a quick look at the sales numbers for Greater Vancouver for May 2024?
Total sales 834 (worse than May 2023 at 984)
Sales usually start to slide in June until January and then pick up in February.
Might be different this time; and sales will soar inversely with all the rates cuts supposedly on the way.
But I doubt it.
TICK TOCK, TICK TOCK
This must be printed and mailed out to every voter in Alberta
#17 kommykim on 06.02.24 at 11:56 am
#13 Dogman01 on 06.02.24 at 11:41 am
Hopefully Daniel Smith will get Alberta out of this typical example of Canadian performance and “accountability”.
=======================================
Daniel Smith will make CPP’s losses look like chump change. ++
Who’s this Daniel guy,? Proceed cautiously as you might be treading on the fart smeller’s territory. He follows the every move of ‘Daniel’ from thousands of miles away, lol..
@#27 IHCTD9
#20 crowdedelevatorfartz on 06.02.24 at 12:05 pm
@#12 Pilot
“Am I reading this correctly? From 150 staff members up to 2,100 in nine years, with an average annual wage of $500K? And the fund lost 0.1% with all the “work’?”
+++
Just a typical day in the Liberal “bloat” machine.
Vote accordingly.
—————
I barely get a week where I don’t learn of another Liberal disaster.
It’s going to take a very long time to fix all this.
——————————————————————
We should be so lucky. I think you and I both know there’s no fixing this mess of a country.
#16 Sail Away on 06.02.24 at 11:55 am
Thanks Sinan, important topic.
At one of the Berkshire AGMs, a question was asked by a pension fund manager and Charlie said there is no incentive for pension fund managers to do well- just collect their fee and stay as stable as possible so as to not lose money.
Here, with the CPP, it appears the managers in their wisdom are treating it as a bar of soap and reducing its size with overly-excessive handling- and appointing all their friends to do the same.
Never trust government.
—————————————————————-
Fleecing the herd. Skimmers, the whole lot of them.
CPP Fund Managers = embarrassing Country Club
“CPP Investments management reports not to governments, but to the CPP Investments Board of Directors. We are accountable to Parliament and to federal and provincial ministers who serve as the CPP stewards.”
“The estimated total pay range for a Director at CPP Investments is $210K–$291K per year, which includes base salary and additional pay. The average Director base salary at CPP Investments is $168K per year.”
“Directors are appointed by the federal Finance Minister in consultation with the participating provinces, and with the assistance of a nominating committee. The nomination process is designed to ensure that only those with expertise in investment, business and finance are appointed to the Board.”
Chrystia Freeland needs to replace the board and the new board assess the CPP fund managers….18 yrs? its embarrassing!
@#6 Dogman01 on 06.02.24 at 11:20 am
All the Trump haters.
You attack the man (an easy target), but few voting for him have any illusions as to his character, there is a movement afoot, Rejectionism.
Trump is a middle finger to the US establishment.
–
trump is a middle finger to everyone, everywhere.
#19 Mike from Montreal – A lot of pension funds invest in commercial real estate and private equity but some in the US have been shifting most of their assets to low cost ETFs
#91 Dragonfly58 on 06.02.24 at 11:32 am
#80 Traveling, Europe is a small place. Canada and British Columbia are large places. Some people like crowded urban areas , you know the vibrancy and stuff. Some people like the scenic calm of rural areas. Some people like the farming / ranching lifestyle. Some people just like small town life.
And I am sure some people thought Lytton was heaven on earth.
Stop being so judgmental of other peoples lifestyle. One size does not fit all { dense urban area with almost all transportation non car in nature } . I would have thought all your traveling would have taught you something, obviously it has not. Some people can’t stand city life. That’s why thousands of communities like Lytton exist around the globe.
We get you don’t like cars, live without one if that’s your choice. But no, not all of us are going to live in a box in a high density urban environment.
I absolutely love living in a fringe area suburban , hobby and working farm zone. Yes totally car dependent, but a small price for me to live my chosen lifestyle. Did the urban thing back in my youth. Apartments / basem*nt suites, bicycle, bus transport. Compared to the way I am living now it just wasn’t my thing. When the neighbors drop in these days for a visit it is usually my local group of deer. Calm , peace and tranquility.
——-
100%. Living in a Balkanized Canadian Metro packed like a sardine is for the birds.
@#22 Ponzies Profit pandering
“Just wonder where he put the 1.3 mil.”
+++
Hmmm.
You’re particularly voluble today Ponzie.
The torrential monsoon rains today in the Lower Brainland put your pickleball match on hold?
ok.
All balanced and diversified of course.
TFSA’s , FHSA’s and some in non registered ( US funds for some and the rest in canuck non registered ), some cash, and also, eventually, my business ( which I don’t include in the summation of “investments” until it’s eventually sold), ( counting chickens before they are hatched is not a good retirement strategy.) .
And you?
No comment on “Tariff’s and Duty”?
I’ve answered your intrusive questions.
No brilliant, smug retort about Tariffs and Duty?
Or was my previous succinct and concise explanation….correct.
3.5 billion in fees is allot but on 632 Billion is it?
“””””””””””””
By comparison the Norwegian wealth fun is around $1.2 trillion and management fees in 2022 were < $500,000 USD.
Oh Canada. Seems we have 40 million greater fools.
#33 Hiding on the Backstreets on 06.02.24 at 12:39 pm
@#27 IHCTD9
#20 crowdedelevatorfartz on 06.02.24 at 12:05 pm
@#12 Pilot
“Am I reading this correctly? From 150 staff members up to 2,100 in nine years, with an average annual wage of $500K? And the fund lost 0.1% with all the “work’?”
+++
Just a typical day in the Liberal “bloat” machine.
Vote accordingly.
—————
I barely get a week where I don’t learn of another Liberal disaster.
It’s going to take a very long time to fix all this.
——————————————————————
We should be so lucky. I think you and I both know there’s no fixing this mess of a country.
————
I haven’t hung my hat just yet. I want to see what PP does. If it’s more of the same, the hat goes on the rack – and I’ll be relocating.
The fix is damn near mission impossible at this point, we need a martyr. Another Mulroney, but twice as willing to piss everyone off.
What you don’t state, is the reason for the underperformance, which is the rise of a handful of tech stocks driven by AI hype and that has lifted the S&P 500 to above average returns. Of course this can reverse quickly, I’ll be the pension fund does better when the S&P corrects, due to inflated tech stocks.
#41 IHCTD9 on 06.02.24 at 1:05 pm
The fix is damn near mission impossible at this point, we need a martyr. Another Mulroney, but twice as willing to piss everyone off.
————————————————-
This is why that “guy” Daniel Smith is preparing: UCP is building Alberta sovereignty from the ground up, brick by brick
https://calgaryherald.com/opinion/columnists/braid-ucp-building-alberta-sovereignty
There is a point of irresponsibility in stewardship and good governance where the boat will sink.
Hey Sinan,
What is often served up as an explanation why public servants are paid so much is that if you want to attract the best, (graduates from McGill ,Harvard, Yale etc), you have to pay them well.
It is therefore, perplexing to see that some of my fellow posters are super star investors, who self report on their stock picking performance and they give tips without charging a dime, while the CCP fund managers fail miserably.
Do you think some of my fellow posters are fibbing?
.
I just found out my phone has been Trumped.
When I picked it up thus morning the screen read “100% CHARGED”
Cheers, R
I lived in Europe for a few years.
Lost my mind, instead of returning to Australia as planned I came to Canada instead.
After marrying and getting permanent residence status, Mrs Flop and I returned to Europe for 5 straight years in the spring time, for a least a month of backpacking.
Then things changed, probably a combination of things, global financial crisis, Europe continued to get more expensive as the transition from previous currencies to the Euro continued, Mrs Flop got a job that had more time-off restrictions.
Haven’t been back to Europe since 2008, hasn’t been all bad though, bought a second hand Motor Home to travel North America, also got some crazy cheap travel deals during and briefly after to Hawaii, Portland, St Louis among others.
Anyway, I still keep an eye on Europe in case I end up retiring there, so many places I still want to visit but the current plan is to keep doing North America until I wear out the welcome mat.
Our last trip to Europe involved a route from two of Europes “It” places at the time, we went overland from Prague to Dubrovnik.
Anyway it appears the new “It” place in Europe, not far from Dubrovnik, Croatia, in which I’ve read double digit amount of articles this year, that I’d never heard of before is Kotor, Montenegro.
https://www.visit-montenegro.com/destinations/kotor/
It’s a beautiful looking area, for sure, hopefully the cruise ships don’t ruin it but they probably will, the days in Dubrovnik when there’s a cruise ship or not are definitely different, bad for the vendors, good for the independent travellers.
So, I was a bit surprised to see someone also thought it was worthy of this title
“The Best Value in European Real Estate.”
“Considering all that’s on offer, and unlike comparable destinations like Croatia, the cost of living in Montenegro is low. A couple can live comfortably here on a budget of around 2,000 euros per month.
Prices vary from town to town, with Kotor Old Town and Tivat’s seafront drag costing the most compared with the villages scattered around the bay. You can rent a small one- or two-bedroom apartment in Kotor Old Town for about 800 euros per month.
Every real estate agent I met with told me that property prices are on the rise ¦ but I’m willing to bet that most American and Canadian retirees would consider Kotor Bay property a steal, especially considering the proximity to the sea and deep historical significance.
You can buy a modest two-bedroom home, albeit one likely in need of some TLC, for as little as 50,000 euros. Inland, this price can go even lower.
Other expenses, like utilities, are low, too ¦ One expat quoted me 40 euros per month for electric and water ¦ He pointed out that if you’re moving to an older property, make sure that the meters were read recently so that you’re not stuck with the previous tenant’s unpaid bill.”
Ok, so I had a look at a real estate site, found a really nice waterfront 2 bed , top floor condo for 207k CAD
https://www.properstar.ca/listing/61239726
Oh Canada, let go of your hold on me…
M49BC
#4 Dogman01 on 06.02.24 at 11:16 am
Good topic Sinan!
Liberals BUTCHER Golden Opportunity for Canada’s Pension Plan
https://www.youtube.com/watch?v=sX0JQGueJbI
Mediocrity – The Canadian Way.
$$$$$$$
Thanks for this link Dman. Canadians should pay attention.
The CPP should be optional. People should not be forced to contribute to a substandard pension plan run by overpaid government workers.
It should all be scrapped and maybe force people to contribute that $7,735.00 / year (employer and employee contribution) into an untouchable account that goes into some kind of passive ETF like VEQT.
In the past I have worked out the CPP monthly payout relative to the forced annual contributions and Canadians are really getting ripped off compared to the returns if they had invested that money themselves.
I guess its the overpaid bureaucrats siphoning from the fund.
Incredible eye-opener, Sinan.
“…across all its staff averaging more than $500,000 per year.”
Average? Holy toodles!
And a 1,300% increase in staff over 18 years!
Garth once said that Canada has “rocks and trees”.
Add: “bureaucrats…lots of bureaucrats.”
How much are Canadians paying for this active management? In 2006, the CPP Fund had a reasonable 150 employees and today boasts more than 2,100 with compensation across all its staff averaging more than $500,000 per year. The funds 5 highest paid employees are now paid nearly $4 million per year. Fees paid to external managers totaled $36 million in 2006 and are anticipated to total approximately $3.5 billion in 2024. Total fund expenses are now anticipated to be more than $5.5 billion per year. Since 2006, fund expenses have totaled over $46 billion.
———————————————————
Hey Sinan, now this is more like a Garth post which
incites a blog riot! Good work!
Many/most of the CPP employees will not be investment managers, but rather administrators and various
support staff. Their total payroll reflects a 0.17% annual
cost. Sounds kinda cheap for government work.
The puzzle for me is the $3.5B paid to external managers, reflecting a 0.58% fee. Who are these people? Probably the same ones that work for other pensions and investment firms. I could see them charging the going rate for their services. What are the fees for the OTPP?
I can also see the need for considerable active
management due to the huge amount invested. VBAL may not be the best choice.
#91 Dragonfly58 on 06.02.24 at 11:32 am
#80 Traveling, Europe is a small place. Canada and British Columbia are large places. Some people like crowded urban areas , you know the vibrancy and stuff. Some people like the scenic calm of rural areas. Some people like the farming / ranching lifestyle. Some people just like small town life.
And I am sure some people thought Lytton was heaven on earth.
Stop being so judgmental of other peoples lifestyle. One size does not fit all { dense urban area with almost all transportation non car in nature } . I would have thought all your traveling would have taught you something, obviously it has not. Some people can’t stand city life. That’s why thousands of communities like Lytton exist around the globe.
We get you don’t like cars, live without one if that’s your choice. But no, not all of us are going to live in a box in a high density urban environment.
I absolutely love living in a fringe area suburban , hobby and working farm zone. Yes totally car dependent, but a small price for me to live my chosen lifestyle. Did the urban thing back in my youth. Apartments / basem*nt suites, bicycle, bus transport. Compared to the way I am living now it just wasn’t my thing. When the neighbors drop in these days for a visit it is usually my local group of deer. Calm , peace and tranquility.
———
I never said I had an issue with the tranquil rural life. I’ve lived in urban, suburban and rural locals throughout my life. There is good and bad in each of them. I just came back from Luxembourg City. It is calm, peaceful and tranquil. It’s not rural but it sure comes close to it when you live on the outskirts of that city. I had nature all around me and multiple hiking trails within a 20 minute walk from my door. I was greeted by deer and other wildlife almost daily. And the low rise condo complexe of 8 units we stayed in was quiet like a tomb. We had the windows open almost the whole time, day and night. Not a peep from the neighbours. Everyone respected everyone else’s desire for quiet. High end construction and soundproofing. The only a-holes were the blackbirds chirping away at 5 am (can’t they just hold off for another hour or so? Lol).
Most of the noise in the cities and burbs is actually due to private vehicles. During the covid lockdown in 2020, it got as quiet as in the rural areas.
What I take issue with is when people (it can be rural, suburban, or urban) expect others to subsidize their lifestyle. Disaster relief funds are not to be used to fund a lifestyle when it is blatantly obvious that the lifestyle in question is not sustainable due to the area where those people are living.
If it’s clear that these environmental disasters (be they floods, fire, drought, earthquake, tornados, etc.) are a recurring issue, then it becomes a one time payout to relocate and get the hell out of there.
Disaster relief funding is not a public insurance plan with unlimited payouts so you can play a lifestyle on other people’s back. If you want that lifestyle with the risks involved, then you need to pay for it in full from your own pocket. If you do that, I don’t have a bone to pick with it whatsoever. If you expect the taxpayer to bail out blatant stupidity scenarios, I absolutely do not support that. When that happens, you are responsible to cough up the funds to pay for your escapism and fantasy life.
As for my travelling, it continues to open my eyes to the unbelievable entitlement that so many people feel is their due and right. And I’ll damn right call it out when I see it for what it is.
Look at you. You want a certain lifestyle but then can hardly afford to pay to buy yourself a second hand truck. And then complaining that your wife won’t subsidize your lifestyle and hobbies. WTF! What kind of entitled attitude is that? Totally unsustainable. And that’s not her job. That’s your job. You want judgemental? That’s judgemental.
You mean that Canada could save $975M/yr by firing 1950 CPP employees? Get’r done, oh illustrious Photo-op Minister! (There’s a ‘budget-balancing itself’ photo-op in it, for ya).
Eye opening, Thanks for providing yet another example of fiscal incompetence at the national level. The profligacy and lapse of oversight at every turn with the LIBDP spendthrifts is almost criminal.
The current cabal of oblivious financial blockheads flailing about trying to buy votes and wont be around for the fallout are causing serious long term damage.
A Gullible electorate and venal incompetent politicians are a toxic marriage.
New Zealand/IMF, circa 1980’S/90’S comes to mind
Well, a rainy day here. Coho is now open out front, but being fairly coddled fair-weather fishermen, this is a better day for bearing packing, spark plug, impeller and engine fluids changes… in a woodstove heated garage over drinks.
The boat is now as perfectly clean, trimmed and outfitted as ever could be. A joy to operate.
And guests arrive from both Red Deer and Vietnam tonight. Summer at the estate!
” In 2006, the CPP Fund had a reasonable 150 employees and today boasts more than 2,100 with compensation across all its staff averaging more than $500,000 per year. ”
That is too much overhead! What possible reason could justify growing their staff that much?
I have been getting the CPP pension for 21 plus years
and my wife for 17 plus years. We have been blissful
in our ignorance thinking everything is perfect. However
the people who are managing this fund better be
looked at and have their salary match their performance.
Same old story when government employs don’t do their
job the Canadian tax payer picks up the slack.
@#44 Quinty’s Questions
“What is often served up as an explanation why public servants are paid so much is that if you want to attract the best, (graduates from McGill ,Harvard, Yale etc), you have to pay them well.”
+++
All to no avail.
Apparently all that expensive education and all those expensive salaries combined into a public works environment…….still churned out mediocre profit performance year after year.
Is it the endless meetings?
Free catered lunches?
The narcoleptic inducing Diversity indoctrination?
No one seems to know… or care in govt.
If it wasn’t so pathetic….it would almost be criminal.
I actually never expected my wife to pay anything but her 1/2 of expenses . And have not complained about her not kicking in toward my interests. Others suggested she should , but not me. I did mention she now makes a lot more than I do, but I completely accept that is her money.
We did go through a time where she was unhappy about paying 1/2 of the moving cost last year. It was after all mostly my stuff that dragged the process out for months and made the cost much higher than a ” normal ” household move should cost. I looked at things from her point of view and reduced her cost by several thousand dollars. Peace restored.
Given a long enough time span almost anywhere can be struck by a natural disaster. It’s just something we as a country have to live with. What would you propose, examine historical records: in some case centuries back for things like earthquakes, and only build anything in the few totally safe zones ? I don’t see that as a very practical solution. Almost everywhere in all of Western Canada is at some risk , mostly wild fire or earthquake. No one should live there ? The Prairies have serious flood risk. Ontario. wild fire and tornado risk. Not much left once you eliminate the risk areas.
In my area most of the noise is farm machinery and lawn tractors. But yes , at times motor vehicles out on the front road. Even public transit is noisy, people have to get places.
Trucks, old and new have become very expensive. It’s just another change that caught me somewhat by surprise. My trucks bought years ago very cheaply were at the end of the road. It was the current cost for old trucks that was a bit of a shock as I had been out of the market for the last decade or so. But with time and money things have worked out. Just more money than I thought would have been required.
Oh, just ignore all this whining from people like Sinan.
Spend your money on whatever you want to. Get a reverse mortgage when you need some cash.
Then spend your retirement snuggled next to Kurt’s smooth, warm forehead, or Tom’s chiseled abs, or Peter Mansbridge’s sexy, soothing baritone voice.
Relax, folks.
48 Tippett
“In the past I have worked out the CPP monthly payout relative to the forced annual contributions and Canadians are really getting ripped off compared to the returns if they had invested that money themselves.
I guess its the overpaid bureaucrats siphoning from the fund.”
—————————————————————-
I think the effect of the original “pay as you go”
approach, and its echo, is much larger.
“…highest monthly turnover in their portfolios have earned significantly less then [than] the least active investors[.]” I can never understand how anyone can get than/then wrong when those words don’t sound the same.
Sinan, that was EXCELLENT on the CPP.
Cdns pension money should be passively managed indexed ETFs. And get rid of the lot of them, the highly paid underperformers that they are, save just a few fund managers + some staff is all they will need less the ludicrous perks they get paid for failure.
————————
I make 3 trades a month, buy/sell.
Last month my principal went down by 2%. I harvested 12.8% in after-tax dividends (CAD $29K) for a total monthly after-tax return of 10.8%. MONTHLY and not annually.
June will come in a bit lighter but not by that much, well, with what I know so far.
If a person is careful and understand thoroughly what they are investing in, all be it higher risk, the rewards are commensurate.
Risk. Reward. Baby.
Though your method is the safer method for the majority of people, a “set it and forget it” method to success; though, requiring decades.
I am a retiree and need to get my ticker pumping every so often; thus, thrill of victory, agony of defeat welcome in this wrinklies life.
BTW, I have changed my investment strategy to earn more in dividends. I owe that inspiration to Garth whom last November published the 1% and their earnings incl. their average annual before-tax $ dividends. I will easily beat that number this year except in after-tax dividends.
Thank you Garth for waking me up.
#30 Quintilian on 06.02.24 at 12:31 pm
#1 Flop… on 06.02.24 at 10:47 am
Drive until you qualify?
“Happy Sunday Flop, did you get a quick look at the sales numbers for Greater Vancouver for May 2024?”
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Hey Quint, no I don’t remember looking at that.
I don’t spend nearly as much time looking at things as I used to when I had a lot more time sitting on the couch waiting for my body to heal.
I’ve just mainly been doing the micro level thing for Flop Drops, I try to use Zealty as much as possible to reward Adam Major for his help during The Pink Snow Project, he wasn’t the only realtor with a moral compass who stepped up, but he was definitely the main one.
I don’t have a predetermined amount of Flop Drops I want to write each month, just the occasional post each 5 or 10 percent step down in price, or sometimes because the current correction has mainly taken place South of the Fraser, East of the Pitt River, ring the bell of relative affordability as each 50 or 100k comes off the sales prices in the region.
Here’s the latest thing I try and look at quickly once a month or so.
Housing Monitor Dashboard.
For all of B.C, and it’s a chart lover’s dream
Sure you notice the inventory piling up in places like Vancouver Island, but the main reason I look is to scroll down and see how the under construction, housing starts and competition chess game is playing out in real time.
Also I have a quick look at this, just to see who’s moving where.
British Columbia In-Flow Migration Map.
So, yeah, I don’t put on my scuba gear anymore, and do real estate deep dives like I used to, now I’ve got my mobility back, I usually just grab a snorkel mask every now and then and lean over and take a quick look into the real estate cesspool.
Best way to avoid the sharks…
M49BC
https://www.bcrea.bc.ca/economics/housing-monitor-dashboard/
#40 Don Guillermo
*******************************
Or Singapore’s Central Providence fund with staff and professional fees of less than SGD $300MM (approx, equal to same amount in CAD) on assets of $548B.
Seems to me like most things government run in Canada (at all levels) seem to be increasingly for the benefit of those involved in running the schemes than the beneficiaries.
If you would like a real eye opening experience, take a quick look at the financial breakdowns of government departments and especially, Crown Corporations. It’s always interesting to see bonuses being paid for poorly defined or even downwardly skewed performance targets. I used to wonder why government and crown corp. costs keep increasing but the performance in delivering mandates never seems to.
#33 Hiding on the Backstreets
“there’s no fixing this mess of a country.”
……………………………………………………………………………………………………..
Exactly and precisely true.
As far as a people and country go – Canada and the US will not see any of the mess politicians have created get fixed.
Not while Canada as a country and a people and the US as a country and a people still exist in under another decade.
No … and in fact not ever.
And as I’ve been saying for months … we sit in the eye of the hurricane through most of 2024 in relative calm for now.
These are the last of the best of days.
Enjoy them while they do last – because they won’t when the worst of times start gathering momentum with no way out for most.
Oh, and one more thing for whinin’ Sinan –
Those young ladies in today’s photo aren’t all looking so excited because they’re about to get a B&D (boring and dateless) portfolio with Turner Investments.
They are thrilled because they’re about to meet real men like Kurt and Tom and Peter, bros they can trust with financial advice.
So stop whinin’ Sinan, about civil servants deservedly making good coin, and get yourself to the gym, dude!
(And make sure to take Garth and Ryan with you. They need it too, to get the CHIP off all your shoulders.)
51 Travelling
“I had nature all around me and multiple hiking trails within a 20 minute walk from my door. I was greeted by deer and other wildlife almost daily….If it’s clear that these environmental disasters (be they floods, fire, drought, earthquake, tornados, etc.) are a recurring issue, then it becomes a one time payout to relocate and get the hell out of there.”
————————————————————
Well, you have accurately described where I live, and some of the disasters you list are ever-present, or at
least seasonally so, throughout large areas of Canada.
Don’t forget to throw in some ice-storms for good measure.
I note the word “recurring” and I think a good example of this is the eastern US seaboard which gets pounded regularly with hurricanes damaging or destroying
oceanfront homes. They receive disaster relief funds, rebuild a few metres back, then it all gets wiped away again in the following years.
Such frequent catastrophe would not apply to a town
like Lytton, though this may change in the future.
You are sounding a little tense T. I did warn you this blog can do that to a person.
CPP and the big salaries etc.
Let’s all try and understand that CPP trailed the benchmark by only 0.1% AFTER paying all those fees and salaries. So basically it was a wash even after paying all that money. The employees benefited and the fund was really not hurt. And by next year they might be aghead of the benchmark again.
It is NOT the case that CPP could have had an extra $46 billion if they went benchmark.
The point certainly stands that it is tough to beat the benchmark.
Could they really have invested hundreds of billions in that benchmark though? Were there ETFs to track that benchmark. And would that have reduced the staff cost to zero?
Corollary to my last Comment.
Before changing up my investment strategy early this year (voracious research at how to up $ dividends since November of last year… all your fault Garth) I beat the Indices handily in prior years.
Last year, ended at +19% after-tax total return (a rough year as most here that invest can attest to). The 2 years preceding that, in the +25-30% after-tax range.
Sinan, accept that there are statistical outliers out there and some, show consistency when aspiring to get their ticker pumping a bit more than normal.
But probability, by in large for the majority of investors, is on your side. I would say ± 3σ. That means there will be that +0.11% that will do better. Why by in large your recommended strategy, and that of this Blog, is a correct one.
Sinan, what and where is the quote from page 39 of the annual report where this admission is made. I can’t find it. Probably it’s there in front of my eyes but I can’t see it.
Andrew Coyne? Yeah, I don’t know about him. I think he wrongly conclude d that the there was an extra $46 billion that could have been made by going benchmark. I don’t think that’s the case. They pretty well tied the benchmark in spite of the expenses spent.
Appears to me that CPP beat the benchmark before expenses and trailed it very slightly after expenses. Another assumption is zero cost to do benchmark is it?
Thanks Sinan for alerting us to yet more government waste. As mentioned, this kind of track record would be cause to fire your financial advisor long ago. These guys couldn’t even manage to keep up with inflation.
My financial manager is officially on notice for barely beating inflation over past 7 years after fees when S&P has managed 9% real growth after inflation during same period. Current portfolio of 25 ETFS is unnecessarily complex and is generating taxable income where it shouldn’t (unregistered accounts) and non-taxable income where it doesn’t need to (registered accounts). Portfolio will be undergoing major review and simplification this year.
PP will have his work cut out for him at CPP as with CBC a new funding model and simplification is called for.
Hey Crowdie, according to their site the CPP fund managers are doing a good job.
Yeah an 8% nominal return 2024-( that leaves much answered.)
But they claim over the last 10 years it’s 9.2%
Who to believe?, What to believe- I give up.
https://www.cppinvestments.com/the-fund/f2024-annual-report/
This is a job for Alberta Shawn
BTW, you know they have an IT department, and can trace you IP address…. Just saying
How much are Canadians paying for this active management? In 2006, the CPP Fund had a reasonable 150 employees and today boasts more than 2,100 with compensation across all its staff averaging more than $500,000 per year. The funds 5 highest paid employees are now paid nearly $4 million per year. Fees paid to external managers totaled $36 million in 2006 and are anticipated to total approximately $3.5 billion in 2024. Total fund expenses are now anticipated to be more than $5.5 billion per year. Since 2006, fund expenses have totaled over $46 billion.
———
How many CPPIB employees does it take to screw in a lightbulb?
Apparently 2,100 and growing.
On a more technical note, how many CPPIB employees does it take to click on a computer and buy ETFs in the S&P 500? Or Nasdaq? The TSX? Emerging markets? Developed nations ex North America? Bonds? Prefs?
Whoever is doing the oversight for the CPPIB is either on the take or is incompetent. I’m leaning towards them being on the take.
If I can manage my B&D with a few taps on my iPad or iPhone, I don’t understand why they can’t do the same.
Didn’t Warren Buffett talk about all you need is to invest in the S&P 500 and you’re golden?
we’re trying to watch a movie…the dynamics between family, kids, friends, parents….omg!!! Its like trying to organize the next Starship launch…
Og
#67 Dr. V on 06.02.24 at 4:27 pm
51 Travelling
“I had nature all around me and multiple hiking trails within a 20 minute walk from my door. I was greeted by deer and other wildlife almost daily….If it’s clear that these environmental disasters (be they floods, fire, drought, earthquake, tornados, etc.) are a recurring issue, then it becomes a one time payout to relocate and get the hell out of there.”
————————————————————
Well, you have accurately described where I live, and some of the disasters you list are ever-present, or at
least seasonally so, throughout large areas of Canada.
Don’t forget to throw in some ice-storms for good measure.
I note the word “recurring” and I think a good example of this is the eastern US seaboard which gets pounded regularly with hurricanes damaging or destroying
oceanfront homes. They receive disaster relief funds, rebuild a few metres back, then it all gets wiped away again in the following years.
Such frequent catastrophe would not apply to a town
like Lytton, though this may change in the future.
You are sounding a little tense T. I did warn you this blog can do that to a person.
———
Zero tension on my part. Just firm on my beliefs. I have nothing but respect for you. We usually see eye to eye and on the rare occasion, disagree. And usually, the gap is narrow there.
I do take issue with whiny Dragonfly58. Too much crybaby from him in the past. He’s established his reputation as a result and I haven’t seen different from him since.
On the topic, some places in Canada are less disaster prone than others. If some people want to live where the risk is higher, and they can’t get personal insurance to protect themselves and their assets as a result, it’s not for the rest of us to pay for that. Insurance companies are refusing to insure certain areas. That’s a clear message right there. Disaster relief funding is not a substitute for that and taxpayers shouldn’t be on the hook for it either.
Garth had it right the other day. If you’re planning to buy a home, along with the obvious condition of obtaining mortgage financing and a home inspector, you need to add on the condition of getting home insurance. If you cannot do that, or the home insurance excludes certain events, do not buy that property.
I’m a very firm believer in personal accountability. Those who don’t believe in that are a 100% write off in my books unless they change through their actions, consistently, not just their words.
#47 Don Guillermo on 06.02.24 at 1:32 pm
#4 Dogman01 on 06.02.24 at 11:16 am
Good topic Sinan!
Liberals BUTCHER Golden Opportunity for Canada’s Pension Plan
https://www.youtube.com/watch?v=sX0JQGueJbI
Mediocrity – The Canadian Way.
$$$$$$$
Thanks for this link Dman. Canadians should pay attention.
————-
well, Mexico is in the middle of national elections.
As usuall, about a dozens of journalists and politicians have been shot.
Looks like a “female” will be the next President.
In a country full of machismo, that would be quite a change.
They’re not worth the cost. Not just the CPP management, but the whole LNDP gang, ignorant and incompetent.
Trudeau&Co broke Canada so badly… Conservative will have very hard time cleaning up this mess.
I paid into CPP for over 35 years.
Always heard that the fund was very well managed.
So, what happened?
I guess it always depends on who’s doing the bookkeeping.
# 8 Summertime sees it. There will be no more winning and losing. Get your b&d portfolio and 8% guaranteed forever. No more recession, depression, and roaring 20’s.The new floor system all but assures outcome. Garth has pointed out that no big bank will fail. Market might just as well be GIC’s including houses. No return to sanity anytime soon.
#75 ogdoad on 06.02.24 at 5:59 pm
Standby og. The greaterfool comments section will shortly provide you with a few reply guys. They will tell you what you are doing wrong and how to do it “the right way”.
#49 Barb on 06.02.24 at 1:45 pm
Incredible eye-opener, Sinan.
“…across all its staff averaging more than $500,000 per year.”
Average? Holy toodles!
And a 1,300% increase in staff over 18 years!
Garth once said that Canada has “rocks and trees”.
Add: “bureaucrats…lots of bureaucrats.”
——————
The minute Civil Servants and their “outrageous” salaries are being mentioned.
Bigots like Barb and FURZ are getting all worked up.
I’ve got a few public employees in my family.
And they, like most Canadians are just trying to make a decent living.
L
Great post Sinan, as always.
The facts speak for themselves, and CPP needs a drastic overhaul with some firings.
Too many bureaucrats in comfortable chairs for too long.
Canada needs you in there!
I tried to call Stormy Daniels brother Jack
All I get is a breathalyzer reading of .66….
Anybody know what’s going on???
@#61 L Lawliet on 06.02.24 at 4:16 pm
“…highest monthly turnover in their portfolios have earned significantly less then [than] the least active investors[.]” I can never understand how anyone can get than/then wrong when those words don’t sound the same.
–
Almost as bad as getting lose/loose wrong. Almost.
COLLATERALIZED DEBT OBLIGATIONS
I’ve been reading, again, author Michael Lewis’s excellent book: “The Big Short: Inside the Doomsday Machine,”2010.
In compelling writing he details the collapse of the West’s financial system in 2008 spawned in part by the use of credit default swaps and collateralized debt obligations.
Cooked up by some of America’s largest banks, this insurance-against-mortgage bonds scheme became a hot mess and destroyed homeowners’ financial lives in the millions.
Last April 27, Financial Post published an article headlined “CPPIB credit head wants to tap the leveraged buyout boom.”
CPPIB is the investment arm of the Canada Pension Plan and is a crown corporation reportable to Parliament.
The chap in question seemed pleased that there has been a revival of the collateralized debt obligation (he called it collateralized loan obligation).
That scheme got lost during the shuffle arising from the 2008 fiasco but has resurfaced as a Bepoke CDO.
https://www.investopedia.com/terms/b/bespoke-cdo.asp
My question: is this wise, especially since it looks like the CPPIB guys running the shop have little clue?
I’m awaiting a response from a letter I wrote to Bank of Canada Governor Tiff Macklem, asking him to look into this.
The pension guy did not tell FP how a CDO could be incorporated into the plan’s structure. He mentioned a potential customer KKR, which last week bit off a chunk of that big hydro dam project in Labrador in exchange for a $1-billion loan to Emera, holding company of Nova Scotia Power that is deep into this project. Such a deal for KKR.
Why didn’t CPPIB cut a deal instead? Or did it and it didn’t work out? KKR is a big outfit and invented the LBO in the 1980s. They are very, very sharp operators.
The CPPIB says it wants to increase the fund’s assets to $1-trillion CAD by 2030.
Thoughts?
For the it should be optional people, you could add… so much for capital in your estate, Gov keeps it.
#43 Dogman01 on 06.02.24 at 1:18 pm
#41 IHCTD9 on 06.02.24 at 1:05 pm
The fix is damn near mission impossible at this point, we need a martyr. Another Mulroney, but twice as willing to piss everyone off.
————————————————-
This is why that “guy” Daniel Smith is preparing: UCP is building Alberta sovereignty from the ground up, brick by brick
https://calgaryherald.com/opinion/columnists/braid-ucp-building-alberta-sovereignty
There is a point of irresponsibility in stewardship and good governance where the boat will sink.
————
Yeah, sounds good on paper, but starting a war with Ottawa ain’t gonna fix anything soon. Frankly, nothing will.
If PP turns out to be a de facto T3, all you can really do is get that B+D to the number – and get outside the blast radius. The fallout will be both economic and social. If the status quo continues, Canada will become exceedingly difficult to govern not too far down the road.
#77 Ponzius Pilatus on 06.02.24 at 6:11 pm
#47 Don Guillermo on 06.02.24 at 1:32 pm
#4 Dogman01 on 06.02.24 at 11:16 am
Good topic Sinan!
Liberals BUTCHER Golden Opportunity for Canada’s Pension Plan
https://www.youtube.com/watch?v=sX0JQGueJbI
Mediocrity – The Canadian Way.
$$$$$$$
Thanks for this link Dman. Canadians should pay attention.
————-
well, Mexico is in the middle of national elections.
As usuall, about a dozens of journalists and politicians have been shot.
Looks like a “female” will be the next President.
In a country full of machismo, that would be quite a change.
############
Today, they’re not as macho as you’d imagine. In the 70s and 80s .. very much. In mid April I drove my car down into Centro (not sure why as I usually walk) and got caught in the middle of a Claudia Sheinbaum campaign rally. I was stuck in the middle of what seemed like hundreds of buses that were bringing thousands of people in from all over the surrounding towns and villages. It took an hour or more just to find a place to park and leave the car until it was over. It was mayhem for a while. She talked long and loud. She is the favorite and has declared she’ll continue with most of AMLOs policies. Makes sense as he was ranked the second most popular world leader after India’s Moti.
As for CPP management, the Asian investment branch is headquartered in the beautiful York House on Queen’s Road Central, Hong Kong. A short walk to the Star Ferry, the Victoria Peak tram and many other fun distractions. I’m sure the New York, London, Sao Paulo, Sydney offices have their fair share of distractions as well. Imagine living in your fancy Victoria Peak condo, looking down at your office tower and deciding to work from home that day.
Obviously Quebec doesn’t participate in CPP but I believe we carry a dozen or so employees in the Montreal office. You wouldn’t want to miss out on any of those great Quebec investment opportunities.
Go Oilers Go!
BC guy who loves Alberta!
Travelling..
You sound like an arrogant and insensitive dick re: people who have had devastating losses in their lives.
Your condescending attitude may apply to Europe but not here.
We left the Lower Mainland and drove 300 miles to Cariboo through Fraser Canyon.
Will report back with some very interesting observations of the trip.
Drove through Lytton and will discuss this soon.
============================
If they do this with cars…what about Stupid Cities?
” Cars now run on data. We hacked one to find out what it knows about you.”
Please remember to tip this weblog on your way out.
18% – Boffo content
22% – Randy content
25% – Erudite content
— —
Everything old is new again. Crack open the history books.
Breadlines are back and with permanency.
The only catch, if you give away food free people will line up for free food. Funny how this works out.
https://www.cbc.ca/news/canada/saskatchewan/canada-s-1st-full-scale-free-grocery-store-to-open-in-regina-1.7220880
Imagine walking into a store, picking out all your groceries for the week and not having to worry about facing an expensive bill at the checkout.
For clients of the Regina Food Bank, that will soon be a reality.
— —
For the rest of us our stores will be going into full electronic lockdown. Think: Lineups, QR codes for entry, security guards, contract tracing. Say…were were not trained on this in 2020 – for our Health?
.‘They’re hitting five stores a day’: Big GTA theft-ring bust comes amid 300 per cent increase in robbery-related violence (thestar.com)
CPP management will never give up stock picking because they have created a self serving highly corrupted compensation system.
The next government needs to clean house. It makes me sick to learn the average salary is $500K. I am sure they have developed a bonus system that ensures payouts based upon corrupt performance targets. Kick these bums out and get an external arms length compensation committee that works for Canadians who own the plan.
@#79 Ponzie’s Pension Purgatory
“I paid into CPP for over 35 years.
Always heard that the fund was very well managed.
So, what happened?
+++
I’ve got you beat by about 10 years.
What happened to the management?
Easy.
They became gold plated, unaccountable, civil servants.
No one gets fired.
Coast along, keep the head down, make as few decisions as possible, 35 years later….a govt pension guaranteed by the taxpayers……sweeeeeet.
look at the assets you will see a lot of cozy investments in no name private equity investments, lots of cozy dealings behind the scene.
Canadians are eating craft dinner to get by and forced to pay into the CPP program and lots of people are living large on other people hard work. Im just saying, well, i guess its true, forget about all the issues with the CPP, like the $2500 death benefit not changed since 1988. or the cap on CPP payments, so when one spouse passes the second better not have had a half decent CPP otherwise very little if anything for the 40 years of spouse work effort.
its all a scam, your all being lied to and well, overcharged for your services, when a simple index fund with a dozen people can do the job of the tower of people and get better results with less fee’s. But who gets all the administrative fee’s well not the hard working people who pay into it, thats why I dont pay into it, I pay nothing, nothing, and I recommend everyone incorporate pay dividends, and structure your affairs where your savings are real, yours to control and manage and use in your retirement and even give to your children, the CPP is a joke as you pay, little that it earns, the little they pay you once retired and nothing after you die.
@#75 Og
“we’re trying to watch a movie…the dynamics between family, kids, friends, parents….omg!!! Its like trying to organize the next Starship launch…”
+++
Take the batteries out of the tv remote.
Kids don’t know how the buttons on the tv actually work
Complaints drop to zero when older people actually have to get off their arse to change a channel.
It seems Canadians achieve not even mediocre health care and to top it off our CPP returns are less than HO-Hum! Imagine all the University campuses full of Kidz fired up about crappy low returns on their highly paid for CPP..nah never happen. Just like ER’s will never have big billboards on the 401 saying wait times at the Oakville Memorial are under 5 minutes. Go OIlers Go.
@#75 Dr. V
“I believe you mentioned you enjoy bonuses or dividends from your place of work.”
+++
Both.
The company I am part owner of pays bonuses based on the annual profit to all the employees.
The bonuses are paid based on the annual profit, the employees length of service, the employees participation over the year, etc etc etc ….myself included.
The other partners sign off on all the bonuses.
The dividends are then paid out after the bonuses and are equally doled out among the owners.
I have a holding company that receives my share of dividends. I dont need the money so it goes to my holding company.
That holding company pays annual GST and taxes and also invests in non registered investments.
Thats it.
#69 Dolce Vita on 06.02.24 at 4:32 pm
Ok, I’ll bite. Care to share your dividend portfolio that has garnered such tax efficient income?
Last year, ended at +19% after-tax total return (a rough year as most here that invest can attest to). The 2 years preceding that, in the +25-30% after-tax range.
#82 Ponzius Pilatus on 06.02.24 at 6:36 pm
The minute Civil Servants and their “outrageous” salaries are being mentioned.
Bigots like Barb and FURZ are getting all worked up.
—————————————
This is great!
People who understand that Bureaucracy is self fulfilling and akin to corporate cancer are “Bigots”.
Too funny.
Let’s not be overwhelmed with emotion. It wasn’t a personal attack.
Well..let’s just get it out there. We all knew it would come to this, didn’t we? The hope and pride of our nation landing squarely on the shoulders of Alberta. Fear not Canada. The unofficial but proven provincial motto is ” Git Er Done”. Meanwhile, those Floridians best ‘git’ busy and learn the words to that old Don Gibson tune..:
Update:
Travels through BC:
Ritchie Brothers Auction yard near Chilliwack is JAM PACKED with heavy equipment and semis.
Canary in the mine?
===============================
Lytton? DONE OVER….
Only one road into town….other is closed…they basically cleaned up the lots of any debris and the properties are filled with road base and pit run gravel. Not a speck of dirt. Very sterile
Counted 5 New buildings in various stages of construction…THE END….the fire happened almost 3 years ago…
Nothing else…No Store ,…No Hospital…..No amenities….
Nothing that indicates a major recovery.
98 crowdedelevatorfartz on 06.02.24 at 9:49 pm
@#75 Dr. V
“I believe you mentioned you enjoy bonuses or dividends from your place of work.”
+++
Both.
The company I am part owner of pays bonuses based on the annual profit to all the employees.
The bonuses are paid based on the annual profit, the employees length of service, the employees participation over the year, etc etc etc ….myself included.
The other partners sign off on all the bonuses.
The dividends are then paid out after the bonuses and are equally doled out among the owners.
I have a holding company that receives my share of dividends. I dont need the money so it goes to my holding company.
That holding company pays annual GST and taxes and also invests in non registered investments.
Thats it.
—————
Big FURZ and the Holding Company.
Sounds like he’s playing with the big boys.
Thanks Sinan Terzioglu !!
Great article…!!!
Really eye – opening and informative.
98 Fartz – thanks for the info.
At my workplace, each partner had their own corp that would receive payment based on their ownership share
of the partnership. The hourly employees were all employed by the partnership.
This let me customize the wages paid by my corp to
myself and my spouse, then determine any dividends.
Or more correctly, let my accountant determine them.
One good year, I thought it best to go make sizeable RRSP deposits for me and my wife. At years end, my accountant raised each of our wages so the amount of the RRSP deposit was contained in the next higher tax bracket.
This created a loss in my corp, and we received no tax
refund for the RRSP contributions as i had been remitting based on the lower wages. I guess he thought that was the best way to do it.
The post is not trying to trash CPP. Just using it as an example to explain how a long term balanced approach works best.
With due respect to the blog authors and all the amateurs that comment here, managing 650 Bn requires a bit more knowledge and experience. That number is bigger than the market cap of the largest US ETF.
For all those beating up on the CPP, their performance, their expenses and their salaries, please educate yourself before criticizing. Or if you criticize someone, at least think of one positive thing to say about them. Otherwise your comments are just blind rants, clogging up space on some server somewhere.
Great post today, Sinan. Thanks!
I’m in Hurghada Egypt. Talk about cheap. Met 3 older Europeon women who live here.Both Dutch ladies have been living here for 3 and 7 years full time. The German lady has been coming for 5 years for 6 months a year.One Dutch lady pays 65 Euros a month for a 1 bedroom apartment and the German lady bought one for $25 000 Euros.They seem to like it, maybe because of all the young men chasing them. Meals from $3 to $5,I had a $1 vegan meal called Koshari !
That average half million salary for CPP fund managers is about what it takes under the 3 years pay rule to buy a home in Canada. By that standard what many other people get paid is a joke just like social program benefits and not a funny joke either. Don’t let the prime minister read this blog or he will probably ask for a raise in pay just to keep up with the fund managers.
I’m shocked, shocked that social programs require tax increases.
“We forecast a hold and put higher odds on a cut in July—or later. Sooner and bigger cuts face higher risk of becoming policy error. There is
nothing to gain from rushing into a cut at this meeting. There is much to be gained by a more complete assessment in July.” – DH
Oh hell. Just wait until after the Jackson Hole meeting. Tell Mr. Market to cool his jets..
#102 RAH on 06.02.24 at 10:55 pm
Update:
Travels through BC:
Lytton? DONE OVER….
Only one road into town….other is closed…they basically cleaned up the lots of any debris and the properties are filled with road base and pit run gravel. Not a speck of dirt. Very sterile
Counted 5 New buildings in various stages of construction…THE END….the fire happened almost 3 years ago…
Nothing else…No Store ,…No Hospital…..No amenities….
Nothing that indicates a major recovery.
———
So, I’m arrogant and a dick. Ok. Or maybe, I live in reality per your own observations of Lytton and you can’t accept what you see right in front of your face.
Also, Lytton had a hospital prior to the place burning down? Are you serious? Did they even have a grocery store? What kind of recovery do you want there to be when the place had a pre fire population of maybe 250?
Yet another sad commentary exposing the corruption, malice, incompetence, and ill will of everything connected to this country’s pathetic leadership and administration.
It’s been a long, drawn out, painful downhill slide.
The PTB are really driving things into the ground.
Poor kids.
#26 Pylot Project
Republica does great coffee, running through a bag of Perfect Storm, an incredible coffee I enjoy is Flores (Washed Gesha)Peru available through Prototype Coffee, well worth the drive into Vancouver.
I hope no one finds this surprising that the fund managers are squandering tax payers investments. Whether the funds lose or gain, the fund manager still gets paid handsomely.
#98 crowdedelevatorfartz on 06.02.24 at 9:49 pm
@#75 Dr. V
“I believe you mentioned you enjoy bonuses or dividends from your place of work.”
+++
Both.
The company I am part owner of pays bonuses based on the annual profit to all the employees.
The bonuses are paid based on the annual profit, the employees length of service, the employees participation over the year, etc etc etc ….myself included.
The other partners sign off on all the bonuses.
The dividends are then paid out after the bonuses and are equally doled out among the owners.
I have a holding company that receives my share of dividends. I dont need the money so it goes to my holding company.
That holding company pays annual GST and taxes and also invests in non registered investments.
Thats it.
———
Going forward though, is it still worth it to receive the dividends in the holdco considering the upcoming increased tax rate for capital gains?
#6 Dogman01 on 06.02.24 at 11:20 am
===
It is true that divisions brought Trump. That doesn’t negate the next problem: what will Trump bring if he wins again.
An arrogant, unpredictable narcissist as a head of state that has the largest economy, the most powerful military force, and the most effective nuclear arsenal. Nothing can go wrong ..
The situation would be quite different if the Reps nominated Haley or De Santis this time.
103 Ponzius Pilatus on 06.02.24 at 11:12 pm
Big FURZ and the Holding Company.
Sounds like he’s playing with the big boys.
Sounds like a story as told with the imagination of the Sailorman.
While some companies have many profit centers, Crowdie’s has many, many profit distribution centers.
Something doesn’t add up. Although the plumbing business probably has a high profit margin, all those bonuses and dividends have come from the net profit that would supposedly come from a large sales /income.
Does he really do that much volume?
It is labour intensive.
How many employees?
@#118 Quinty’s questions
Who said I was a plumber?
Ponzie?
Bwahahahaha
80bps to manage 650B and return 9% per year doesn’t seem that crazy to me. Not sure how 7% and say 50bps would be a better scenario. I mean, they are crushing a B&D over the last decade, whats the issue?
#40 Don G
And that fund has returned 6% lifetime, and 6% last ten years. Fees aren’t everything, I’ll pay 80bps to gross 300 more any day of the week.
Feel lots of folks are missing the forrest for the trees here. The CPP team missed their benchmark, but obliterated a trad B&D. And just buying the SP 500 smashed almost every investing strategy.
Last post… someone mentioned Singapores Wealth fund and low fees. Well I sure hope so because they are 3.5% and 5.2% last 5 and 10 years respectively. You can’t beat inflation I’d sure hope you are stacked with fees.
#118 Quintilian on 06.03.24 at 10:09 am
103 Ponzius Pilatus on 06.02.24 at 11:12 pm
Big FURZ and the Holding Company.
Sounds like he’s playing with the big boys.
—————
Sounds like a story as told with the imagination of the Sailorman.
—————
‘There are strange things done ‘neath the midnight sun by the men who moil for gold / Artic trails have their secret tales that would make your blood run cold’
-Robert Service
Sounds like CEF has Envious Ponzie and Detective Quint running in circles.
Sideshow here is added entertainment for no extra cost.
