Clippings 2016

Recommended reading, economic debates, predictions and opinions.
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ghariton
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Re: Clippings 2016

Post by ghariton » 07 Jun 2016 21:50

BRIAN5000 wrote:Associate with those better than you
Yabbut if we all tried to implement that...

Reminds me of the advice, long ago: "Choose a spouse with fewer mental problems than you have." But what if she's been listening to the same advice?

George
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Shakespeare
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Re: Clippings 2016

Post by Shakespeare » 07 Jun 2016 21:55

Then you get together and play with your mental blocks. :wink:
“A wise man should be prepared to abandon his baggage at any time.” -- R.A. Heinlein, The Door Into Summer.

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Re: Clippings 2016

Post by kcowan » 08 Jun 2016 09:23

ghariton wrote:
BRIAN5000 wrote:Associate with those better than you
Yabbut if we all tried to implement that...
I find that the richer people that I associate with got there through their choice of business (and their superior business acumen) and display mediocre investment practices. In fact, without this forum, I would be lost.

I wonder how my experience compares to other members here?
For the fun of it...Keith

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Shakespeare
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Re: Clippings 2016

Post by Shakespeare » 08 Jun 2016 09:41

You concentrate to get rich, but diversify to stay rich.

For most of us, saving/investing will get you comfortable, but not rich.
“A wise man should be prepared to abandon his baggage at any time.” -- R.A. Heinlein, The Door Into Summer.

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Re: Clippings 2016

Post by j831robert » 08 Jun 2016 15:23

What's "rich"?. I'm certainly not the sharpest knife in this drawer but have followed this forum on an almost daily basis for a lot of years and gleaned some excellent advice here along the way which has placed me (us) in a "nice to have" situation when we pay our quarterly Federal 'pound of flesh' (clawback). Sort of a 'don't leave home without it' and wouid probably be amongst the 'getter's' rather than the "givers" without this forum and it's predecessor. Thanks guys n' gals.

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Re: Clippings 2016

Post by ghariton » 08 Jun 2016 18:10

j831robert wrote:What's "rich"?.
"Rich" is anyone who has (or earns) 50 per cent more than me.
without this forum and it's predecessor. Thanks guys n' gals.
That's my situation too. I learned from the posters on this and the predecessor forum. Transformed me from a speculator into an investor.

I've tried to give back a bit of what I received in terms of financial savvy. Still have a long ways to go.

George
The plural of anecdote is NOT data.

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kcowan
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Re: Clippings 2016

Post by kcowan » 08 Jun 2016 18:22

Cut the crap George. You have it "made in the shade"! :rofl:
For the fun of it...Keith

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Re: Clippings 2016

Post by gobsmack » 09 Jun 2016 08:35

SBS Dateline (Aussie TV show) recently aired an episode covering foreign money in the Vancouver real estate market:



However, I think it failed to answer an interesting question. Unlike Canada, Australia is actively trying to control/regulate foreign money coming into their real estate market. It does not seem to be working though:

http://www.abc.net.au/4corners/stories/ ... 327525.htm
http://www.abc.net.au/4corners/stories/ ... 451883.htm

So much for that. I reckon it is not likely it would work here either.

I thought it was interesting to hear a different perspective on this topic.

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Re: Clippings 2016

Post by patriot1 » 10 Jun 2016 11:11

gobsmack wrote:Unlike Canada, Australia is actively trying to control/regulate foreign money coming into their real estate market.
Australia directs foreign RE investment into new development or redevelopment, but sets no limits on the amount of it. Ostensibly this is supposed to increase supply, but Australia's RE prices are much higher on average than Canada's.

Chinese Investment in Australian Real Estate Doubles

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Re: Clippings 2016

Post by squid » 13 Jun 2016 14:11

patriot1 wrote: Australia directs foreign RE investment into new development or redevelopment, but sets no limits on the amount of it.
Yes, this doesn't seem to be a good way to stop Foreign Investment. Seems to me that the new owners don't like used things and tear down 10-15 year young homes regularly.

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Re: Clippings 2016

Post by CROCKD » 13 Jun 2016 17:59

squid wrote:new owners don't like used things and tear down 10-15 year young homes regularly.
So how do you get the 10+ year old home to tear down if you are not allowed to buy it in the first place?
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Re: Clippings 2016

Post by patriot1 » 13 Jun 2016 19:37

CROCKD wrote:So how do you get the 10+ year old home to tear down if you are not allowed to buy it in the first place?
If there's a market for new houses, locals will buy old ones, tear them down, and build new houses and sell them. Happens in every Canadian big city.

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Re: Clippings 2016

Post by BRIAN5000 » 14 Jun 2016 20:52

https://youtu.be/gvZSpET11ZY

In his latest episode of Last Week Tonight, host John Oliver waded through all the confusing, infuriating intricacies of the financial advisor industry in the U.S. While firms like to paint their advisors as cuddly caretakers of your riches.
“Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a
little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Clippings 2016

Post by Insomniac » 14 Jun 2016 22:59

BRIAN5000 wrote:https://youtu.be/gvZSpET11ZY

In his latest episode of Last Week Tonight, host John Oliver waded through all the confusing, infuriating intricacies of the financial advisor industry in the U.S. While firms like to paint their advisors as cuddly caretakers of your riches.
I posted that in the humour thread as I didn't know where it should go. It is good.

viewtopic.php?f=27&t=118907&start=75#p577928

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Koogie
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Re: Clippings 2016

Post by Koogie » 20 Jun 2016 13:32

Interesting piece in last weeks Economist about Vanguard.

Index we trust
http://www.economist.com/news/finance-a ... p-index-we

Mostly a general synopsis of its' history and structure but some of the statistics about its current inflows and clout were very interesting:
"One dollar in every five invested in mutual or exchange-traded funds (ETFs) in America now goes to Vanguard, as does one in every two invested in passive, index-tracking funds, according to Morningstar, a data provider."
Buy very little, sell even less.

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Re: Clippings 2016

Post by skepticus » 21 Jun 2016 00:22

Banks are not your friend (to paraphrase the inestimable ghariton). Tom Bradley, CEO OF Steadyhand mutual funds tears a strip off our national institutions for squeezing us so hard.

https://www.steadyhand.com/industry/201 ... some_more/

Anybody here think otherwise?

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Re: Clippings 2016

Post by SkaSka » 08 Jul 2016 19:30

Folks, it is not advisable to pay the "CRA" in iTunes gift cards through Snapchat...

I mean... I felt a slight amount of sympathy that this person was new to Canada, but... who in their right mind thinks that the tax authority of a country is going to take payment in iTunes gift cards through Snapchat!?!?!

Stupid, stupid, stupid... can't get dumber than this.

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Re: Clippings 2016

Post by Shakespeare » 08 Jul 2016 19:36

can't get dumber than this.
Betcha it can. Just check Darwin nominees....
“A wise man should be prepared to abandon his baggage at any time.” -- R.A. Heinlein, The Door Into Summer.

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Re: Clippings 2016

Post by newguy » 11 Jul 2016 18:24

SkaSka wrote:Folks, it is not advisable to pay the "CRA" in iTunes gift cards through Snapchat...

I mean... I felt a slight amount of sympathy that this person was new to Canada, but... who in their right mind thinks that the tax authority of a country is going to take payment in iTunes gift cards through Snapchat!?!?!

Stupid, stupid, stupid... can't get dumber than this.
I dunno, how about calling people stupid who haven't had a chance to learn. I realize we're all better than those other people, but I draw the line at calling them names because I've lived a life of privilege.

newguy

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Re: Clippings 2016

Post by SkaSka » 12 Jul 2016 13:58

newguy wrote:
SkaSka wrote:Folks, it is not advisable to pay the "CRA" in iTunes gift cards through Snapchat...

I mean... I felt a slight amount of sympathy that this person was new to Canada, but... who in their right mind thinks that the tax authority of a country is going to take payment in iTunes gift cards through Snapchat!?!?!

Stupid, stupid, stupid... can't get dumber than this.
I dunno, how about calling people stupid who haven't had a chance to learn. I realize we're all better than those other people, but I draw the line at calling them names because I've lived a life of privilege.

newguy
I hear what you're saying, however, I just can't fathom how someone could honestly believe that the tax agency of a national government would demand tax payments in Apple gift cards through Snapchat.

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Re: Clippings 2016

Post by ghariton » 13 Jul 2016 13:58

Bank of Canada downgrades growth in Canadian economy
The Bank of Canada cut its growth forecast for 2016 but held rates steady on Wednesday, saying exports continued to disappoint and acknowledging it may have underestimated structural challenges facing businesses.

In explaining its decision to leave interest rates unchanged even as it cut its expectations for Canadian and global growth, the central bank reiterated warnings about possible speculation in the housing markets in Toronto and Vancouver.
Diversification is more important than ever.

George
The plural of anecdote is NOT data.

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Re: Clippings 2016

Post by BRIAN5000 » 11 Aug 2016 19:47

As tweeted by Norm

http://www.usatoday.com/story/money/col ... /86877234/

New retiree withdrawal rate: Goodbye 4%, hello age divided by 20
“Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a
little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Clippings 2016

Post by Spudd » 12 Aug 2016 13:30

I read that after Norm tweeted it, and it seems ridiculously conservative to me. OK, if you retire at 40 then you get a 2% withdrawal rate, that seems reasonable enough. But for a 70-year old to have a 3.5% withdrawal rate is just crazy conservative. An 80-year old gets a 4% withdrawal rate?

At least their heirs will be happy.

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Re: Clippings 2016

Post by longinvest » 12 Aug 2016 13:35

To tell the truth, I much prefer our Finiki's Variable Percentage Withdrawal (VPW). It is almost as simple as age divided by 20, but way more reasonable.
Bogleheads investment philosophy | Simple index portfolios | Lifelong Portfolio: 25% each of (domestic/international)stocks/(nominal/inflation-indexed)bonds | VCN/VXC/VAB/ZRR

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Re: Clippings 2016

Post by NormR » 12 Aug 2016 15:13

longinvest wrote:To tell the truth, I much prefer our Finiki's Variable Percentage Withdrawal (VPW). It is almost as simple as age divided by 20, but way more reasonable.
I think most people here are capable of understanding more complicated - and likely more accurate - methods. :)

Btw, I got the article from Moshe A. Milevsky's twitter. So, follow both @RetirementQuant and @NormanRothery and pay attention to Prof Milevsky's objections.
Last edited by NormR on 13 Aug 2016 13:24, edited 1 time in total.
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