How much would parents be willing to pay adult (over 18) children to move out of their house? According to the CIBC it is $24000 , which is a nice round number. I have written about Kippers and children living with their parents, so this data is of interest to me. The CIBC Gifting Poll, suggests there really is a magic number that parents are willing to shell out to get kids to move out. The poll mentions how “… gifts shouldn’t come with strings attached…” but I have no problem, calling a bribe, a bribe.
Another interesting point is the flood of inheritance money that will be unleashed as the baby boomers pass on their amassed fortunes ($750 Billion over the next decade?). I don’t know many folks that speak openly of inheritance money they expect, but if you know for sure you are receiving it, shouldn’t this be part of your financial plans? It sounds quite crass, but if the money will be arriving some time, why not add it to your plan?
I was disgusted to read that Sears employees are not getting their severance payments, yet, executives are having their bonuses paid. This cuts too close to the bone for a former Nortel employee. Nortel is finally paying out to their former employees (at pennies on the dollar), what the employees are owed. This kind of business bad practices that really does get under my skin.
I think the deepest thought I read in while was, “Hipsters listen to the Best Of albums, but real fans listen to the complete original LPs”. It is deep because there are so many parts of that phrase that my children wouldn’t understand. What is a Best Of album? What is an LP?
Next thing know that this was a major advancement in engineering and finance.
I Wrote This Week?
Yes, I did write this week. I have been working a very loose schedule for the past while, I am hoping to step up the pace a bit more soon, but this week I wrote Low Inflation Means No More Interest Hikes ? Will the continued low inflation keep the interest rates low? I don’t think so. The Bank of Canada has been fairly clear that there is too much stimulation in the economy with low interest rates. I am assuming there will be at least another 1/2 point raise of rates if not more, but low inflation may slow other rate increases?
I am experimenting with tweets and Facebook posts that are not full stories, but get a point across about the economy, witness this GIC commentary. I would bet there might be a few millenials that might have asked, what is a GIC?
Lazy, Hazy, Crazy Days of Summer
Not a commentary on the political world down south, just remembering one of my favorite Nat King Cole songs. ☀️
- Our amigo Robert Brown (Wealthing like Rabbits) wrote in Money Sense magazine, 5 personal finance myths you probably still believe. Financial myths are things to ignore.
- Aeon magazine brings us an interesting study The Quitting economy, when employees are treated as short-term assets, they reinvent themselves as marketable goods, always ready to quit, which is actually quite true.
- The Blunt Bean Counter comes back from his summer vacation, to study some new concepts coming from the Liberal government, Tax Planning Using Private Corporations – The New Liberal Proposals.
- Freakonomics brings us The Stupidest Thing You Can Do With Your Money, and it is quite an interesting Podcast. Is the Indexing revolution going to change things for investors? You’ll have to listen and see what they say.
- What is the Behaviour Gap ? That area between what we should do and what we end up doing, and Michael James reviews a book discussing this in the area of money.
Total Debt Load
No one really answered this query I put up on Twitter and on my Facebook feed, is this still the case? Doesn’t the banks worry about your possible total debt load when they loan you money for your house?
2017 Random Thoughts
- Rate Reactions, Mortgage Double Ups, Bad Cycling and #MoneyTalk (July 21st)
- Keep Calm and Pay Off Your Debt and #MoneyTalk (July 14th)
- #Canada150, B of C Rates, and #MoneyTalk (June 30th)
- Donuts, Graduations, Summertime and #MoneyTalk #Canada150 (June 23rd)
- Bank Profits, Loose Money, Used House Salesfolk and #MoneyTalk (May 26th)
- Avocado Toast, Victoria Day, Ransomware and #Moneytalk (May 19th)
- RDSP, DTCs, Mother’s Day and #MoneyTalk (May 12th)
- Thanks Prince Phil, More Old Than Young and #MoneyTalk (May 5th)
- MLM, Balanced Budgets, and #Moneytalk (April 28th)
- Overheated Housing Market, Rent Controls and #MoneyTalk (April 21st)
- Ladies on Panels, Good Friday, Friendly Skies, Loose Money and #MoneyTalk (April 14th)
- Tax Time, Housing Bubbles, Financial Easter and #MoneyTalk (April 7th)
1st Quarter 2017 Random Thoughts
- April Fools, High on Life and #MoneyTalk (March 31st)
- Ho Hum Budget, Brackets Busted and #MoneyTalk (March 24th)
- Naughty Banks, March Madness, Big Snow and #MoneyTalk (March 17th)
- Teller Upselling, Auto-filling Taxes, Spring Forward and #MoneyTalk, (March 10th )
- Lent Begins, Loose Money and #MoneyTalk (March 3rd )
- RRSP Season, Tax Time, and #MoneyTalk (February 24th )
- Farewell Vinyl Café, Snow, Monopoly and #MoneyTalk (February 17th )
- RRSP , Tax , TFSA , RESP, and RDSP Time and #MoneyTalk (February 10th )
- Year of the Fire Rooster, Financial Groundhog Day and #MoneyTalk (February 3rd )
- Alternate Financial Facts, 1984 and #Moneytalk (January 27th)
- Bungled Mortgages, Friday the 13th and #Moneytalk (January 13th)
- Merry New Year, CPP, EI and #MoneyTalk (January 6th)
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I agree with the other comment. But its a case to case basis depending on the parents and the kids. There are parents who are very open and let their kids use their money and make it as their own. Others just let it be until their dying days. In my case, my parents are still alive and I really don’t mind including it. Out of respect, it never occurred to my mind. If time comes, well that financial plan can happen.
I think viewing it as found money might be the best way to deal with it.
“I don’t know many folks that speak openly of inheritance money they expect, but if you know for sure you are receiving it, shouldn’t this be part of your financial plans?”
It’s not part of my financial plan. 1)Yes, it is crass. 2) It is still their money. 3) When nearing the end, if it can buy time.. buy time.
Agreed and absolutely if it buys more time for them, then they get to blow all of it if need be. More than a few times I have heard aging friends say they won’t do things so that they can help their kids, I keep telling them, “It is YOUR money, do what YOU want!”