Economy imploding

[Brades]

But but... I've only had this place 11 years and will be done paying in about 7... turned a 25 year mortgage into 18 years. In that 11 years, I paid about $25k to do a garage (excavation/foundation paid, the rest supplies) that added $50k in immediate equity. All in all, I have about $97K left on my mortgage but my place is now worth $325k+ (one of the few houses on the street with a garage, real estate agents drop off their cards with notes that say "I could sell your house in 48 hours for $300k!" - no doubt, because it's under-priced by 10%). Not bad considering I paid $166k + $25k = $191k, except I didn't pay the $25k (early inheritance from my father in law). So... doubled in 11 years, paid in 18 years, just in time for first kid to go to post-secondary.... sigh.

You also have a government job with a pension... set for life. Most people our age(20-30 year olds, not you old geezer )will not have a pension. The only way for us to save money is to invest in medium risk investments... forget about trying to retire on a low-risk investment.... the inflation rate will eat away any earnings.

 

[Brades]

I agree, there are situations where it's better, but not for all, especially for newer generations that are useless (not educated) that have shits jobs while cost of living goes up. I own (pay mortgage) too, and will own because I can. But it's not for all..

Actually our generation is more educated than our parent's generation... difference is that they could get a decent paying job with a high school education, or be balling with a 3 year college diploma.

 

[OG buckshot jr]

Fair point, I'll take that.

 

[Brains]

No pension? Then where is our CPP money going?

 

[Brades]

No pension? Then where is our CPP money going?

CPP is a joke... barely enough to buy food for the month. If you plan to live off of CPP... you're going to have a bad time.

 

[Brains]

CPP is a joke... barely enough to buy food for the month. If you plan to live off of CPP... you're going to have a bad time.

Ya it's barely anything. Thought you meant they're taking that away completely

 

[OG buckshot jr]

Valid question, brains. I agree cpp is a joke, in fact I'm pretty sure official advice (like gov't ads, etc) is to not rely on it. We must secure our own future, for sure.

 

[Noob.]

Current average monthly cpp payment is $640 if you wait until 65 to claim it. Good luck living off of that. You can cover food and like 1 or 2 utility bills. Nothing else. You need to invest your money now or you're screwed come retirement.

 

[Brains]

$650?!

 

[Brains]

There's also old age pension which is $546 a month

 

[TurboTaco]

There's also old age pension which is $546 a month

Dont think of relying on OAS as much of a supplement for you either brains. OAS is based on your income in retirement, the more you have the less you get if none at all. Also, most likely within the next 20-30 years OAS will be dunzo which means the next gen after baby boomers that retire will not have this supplement to rely upon either. You would be better off lining up at Ark-aid, praying then getting your soup kitchen meal.

 

[Brains]

Dont think of relying on OAS as much of a supplement for you either brains. OAS is based on your income in retirement, the more you have the less you get if none at all. Also, most likely within the next 20-30 years OAS will be dunzo which means the next gen after baby boomers that retire will not have this supplement to rely upon either. You would be better off lining up at Ark-aid, praying then getting your soup kitchen meal.

Oh I'm not relying on OAP or CPP lol

 

[Steve]

Oh I'm not relying on OAP or CPP lol

Who needs hand outs when they have mombux

 

[up-n-atom]

http://money.cnn.com/2015/04/13/investing/canada-economy-trouble-low-oil-price/

 

[TurboTaco]

http://money.cnn.com/2015/04/13/investing/canada-economy-trouble-low-oil-price/

Its funny that the article seems to make the low oil price issue a unique problem for Canada only which isnt the case...its true canadas economy is driven by a majority of energy and resource sectors, but this is true for a ton of nations. Even the oil rich nations of the middle east rely on the price to be higher than current levels otherwise they too in 5 years will see a crunch in their finances since they spend hundreds of billions on social welfare, health and infrastructure which will be strained since so much of their revenues are dependent on oil and its price.

Argentina is even more fucked than most the world with regards to oil as are many other developing nations. America has plenty of other sectors that insulates them from the oil n energy mkts but they are still affected just as much as many other countries.

These doomsday styled articles about the state of our econ tied to oil n gas are really getting boring

 

[OG buckshot jr]

I agree with taco, I feel the same way. To me, it's an excuse to drop our dollar's value to encourage exports and thus production.

This is the same shit China has been doing for decades and has only recently being 'found out' to have been doing so.

 

[Remy]

CPP is only supposed to supplement your retirement savings its not supposed to keep you fed. Ontario is talking about its own Pension plan as well. People should not be relying on the government to pay their bills after they retire especially when there will be more people taking from the Pension than contributing into it later on.

 

[OG buckshot jr]

especially when there will be more people taking from the Pension than contributing into it later on.

This I don't understand. How can that happen? If you don't contribute, you still get paid!?

 

[$alvador]

Because our dependency ratio is growing larger, Bucky. Take a look at this. We're not pumping out enough young bucks to keep up with the old fucks, and if the old fucks expect to retire then all the responsibility falls on the young bucks to keep adding funds to the CPP, which is essentially an investment fund managed by a Crown corporation instead of a bank.

 

[MetalLobster]

Because our dependency ratio is growing larger, Bucky. Take a look at this. We're not pumping out enough young bucks to keep up with the old fucks, and if the old fucks expect to retire then all the responsibility falls on the young bucks to keep adding funds to the CPP, which is essentially an investment fund managed by a Crown corporation instead of a bank.

The dependency ratio is getting smaller.

Right now, we're at about 4.6 workers per retiree over 65, but that is expected to drop.