Stats Canada got out, just in time for your Christmas spending guilt, Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, 2016. What is it telling you? Canadians Owe More! For every dollar of disposable income, you owe more than you did previously! An interesting tidbit from the report is:
In 2016, the national average debt-to-disposable-income ratio was 172.1%
Simply stated for every $1 you have to spend you owe $1.72, isn’t that delightful? If you read the report in more detail you will see the real debt-load of lower-income Canadians is horrific (a mind-bending 333.4%). That is very scary if interest rates start going up quickly.
If that doesn’t put you into a festive spending spree, good! Time to start figuring out how the heck to get out of the debt trap, so Canadians owe more be a thing of the past.
One more happy thought to consider:
Similar to wealth, the top 20% of income earning Canadian households accounted for 40.9% of total household disposable income.
Top 20% accounts for 40% of the disposable income? They better start spending!!!!
In Ottawa, the snow came down, and then lovely frigid temperatures arrived quickly afterwards, a delightful 1-2 punch. Thursday morning I drove in behind a car with Florida plates. First I wondered, “Who did he or she insult to end up being sent up here?” and then I wondered, “Have they ever heard of snow tires?”. Yes it is Canada, but it doesn’t have to be this cold this soon, does it?
A very interesting policy change for CPP survivor benefits outlined in , New CPP changes give survivors full benefits immediately. Previously this only happened when the survivor got older, but now it seems to be right away? I would be curious to find out what might have triggered this change of heart by the governments ? Someone commented, “It is the right thing to do…”, but that is rarely a driving force for Government Policy Changes.
My Recent Writings
In the summer I visited the Halton County Radial Railway with my family (my son loves trains), and saw a very interesting ad in one of the old TTC trams that turned into this week’s only article, Toronto Housing Bubble ? Yes housing prices have been out of control many times in Toronto, this is not the first time (nor will it be the last). I note no one has left a comment guessing on the possible year that poster was from, c’mon readers!
Micro Blogging on Finance
Glad to hear the CRA is starting to reconsider their policy change on the DTC, we shall see what comes of this.
CRA to review disability credit applications previously denied https://t.co/UYG1Swy8E7
— CanadianBudgetBinder (@CanadianBudgetB) December 9, 2017
How about a Bitcoin one? You’ll like this one, it is deep.
Conversation over today’s coffee. WIFE: “Bitcoin is at $13K. I told you we should buy!” ME “It’s a tulip bubble” WIFE: “That’s what you said at $2K” ME: “Well, even bigger bubble now” WIFE “I can’t believe anybody actually pays you to talk about money…”
— Moshe Arye Milevsky (@RetirementQuant) December 7, 2017
Christmas is Almost Here🎄
Yes, it is about one week until Christmas, have you stopped spending yet? Better stop soon!
- What is the The “Hole” in Whole Life Insurance ? The Blunt Bean Counter does his normal thorough expose on whether Whole Life Insurance is a good idea. I only bought term insurance, seems to have worked OK for me.
- To stay with a festive tone, the Atlantic has a view about Why Is Everyone So Bad At Giving Gifts? Mostly because I have no imagination, is my excuse. I know what I want, why do I have to figure out what you want?
- I have been searching for the most sincere Festivus Pole, but so far no luck.
- Stuck on what to buy a loved one? Kerry from Squawkfox brings us a timely post, The 9 Best Toys of All Time Don’t Cost a Thing. I think she got it right with this one, don’t you?
- Have you figured out whether you should buy Bitcoin or a Toronto Condo? If you are considering either, you really aren’t reading my articles are you?
- What are the Biggest Mistakes Retirees Make with Their Investments? Michael James critiques and comments on an interesting article by Jason Heath.
Are the CRA Bullies
End of 2017 Random Thoughts
- DTC Changes, Christmas Present Ideas, Fraud and #MoneyTalk (December 8th)
- Unlocking Phones, Raiding Parents’ RRSP, Household Debt and #Moneytalk (December 1st)
- What is your price, Black Friday, Phoenix and #MoneyTalk (November 24th)
- We Shall Remember, Paradise Papers, Tax Cheats and #MoneyTalk #FLM2017 (November 10th)
- Fall Back, Farewell PC Financial, and #MoneyTalk #FLM2017 (November 3rd)
- Mortgage Tests, Thanks Gord and Bombardier and #Moneytalk (October 20th)
- Halifax Ikea, New Tax Plans, Pumpkin Spice ETFs and #MoneyTalk (September 29th)
3rd Quarter Random Thoughts
- Summers end, Taxes, Doomsday Insurance, Uber and #MoneyTalk (September 15th)
- Rates Up Trend, Summer Holidays, High Gas and #Moneytalk (September 8th)
- Farewell PC Financial, Summer Holidays, Bat Guano and #MoneyTalk (August 18th)
- Paying Children to Move out, Sears, and #MoneyTalk (July 28th)
- Rate Reactions, Mortgage Double Ups, Bad Cycling and #MoneyTalk (July 21st)
- Keep Calm and Pay Off Your Debt and #MoneyTalk (July 14th)
2nd Quarter Random Thoughts
- #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)
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