This is How Canada's Housing Correction Begins

[Xtrema]

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Well, they are a touch sketchy

Very surprising though if true as they would still have to follow the OSFI rules

Couldn't find that guy soon after mortgage is done. So may be this is one off and he did something sketchy to get the commission.

[Xtrema]

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I don't know how thats even possible

Oh, trust me it's possible.

Got a chick telling me she got no saving to own a condo and then turn around blew $3000 on black Friday because she ain't living like a peasant.

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Even 9+3 is still a good deal.... stupid people for not taking advantage of free money. 33% gain on your investment immediately is always worth it.

But what's he going to spend with if it's locked up in savings?

[Twin_Cam_Turbo]

I find I’m cyclical, one year I’ll spend all of my liquid savings while still contributing to RRSP and lump sums on my mortgage then the next year I’ll save as much as possible while still making those contributions.

[ercchry]

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I find I’m cyclical, one year I’ll spend all of my liquid savings while still contributing to RRSP and lump sums on my mortgage then the next year I’ll save as much as possible while still making those contributions.

Binge saving!

[89coupe]

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I thought it was always 50% no questions asked....anyway, 4.5 months my condo has been on the market

I sold that two bed two bath unit I had on in Mission, 55 days.

[Twin_Cam_Turbo]

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Binge saving!

Legit. 2017 was a save everything year, 2018 was a spend everything year.

[Mys73ri0]

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That also doesn't include any deductions for benefits and I'm assuming there's some sort of RRSP matching program. I have a couple friends that make it sound like they're struggling to save but they are actually already putting away lots in RRSP contributions, one has 10% and employer matches another 10%.... crazy.

Your annual RRSP limit is 18% of income. No employer would do a 10 for 10 match for RSP's

There are still some pretty nice DB and DC plans in the O & G world probably make a lot of people mad... best i've seen is a 5 for 13 match

[TomcoPDR]

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damn!

My price is realistic tho and it's still not moving.





There are a lot of broke people out there

Any written offers?

[mr2mike]

A person who makes $70K/yr saves more than someone who makes $100k/yr. I believe this was proven a few years ago in a study.

[realazy]

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There are still some pretty nice DB and DC plans in the O & G world probably make a lot of people mad... best i've seen is a 5 for 13 match

Yup... definitely would make people mad. My company basically does 10% for new hires, 12% after 5 yrs, and 14% after 10 yrs. Also matches 2% if you contribute 4% on top.

So for a 10 year person, its 16% for 4% match essentially. This will be over your limit, so you will get some back in taxable cash.

[chongkee_]

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Yup... definitely would make people mad. My company basically does 10% for new hires, 12% after 5 yrs, and 14% after 10 yrs. Also matches 2% if you contribute 4% on top.

So for a 10 year person, its 16% for 4% match essentially. This will be over your limit, so you will get some back in taxable cash.

Damn!
Where is this? Pm me if you like.

[mikestypes]

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Your annual RRSP limit is 18% of income. No employer would do a 10 for 10 match for RSP's

I've seen 10% Employee for 15% Employer in O&G. It is a Share purchase plan, not specific to RSP.

[blownz]

Regarding housing I feel that Calgary and Edmonton have been pretty much flat for years now. And I don't really see it changing anytime soon. And even if it is flat, you are losing money when you look at inflation. Obviously not an issue if you aren't over extending on your housing or have more than 5% equity, but that is likely not the case for many people.

Regarding saving, I think most people just have no idea what they are doing and assume CPP and OAS will cover them when they retire. Perfect example, my buddies parents just came to him bragging about how they were both 65 now and ready to retire and asked if he could help them apply for CPP and OAS online. He did for both of them and the total they were going to get was something like $2,500 per month. He said they had blank looks on their faces and said "well that doesn't even cover the mortgage, truck payment and trailer payment..." He then asked them what else they had saved and how many more years of payments they have. Turns out they had saved nothing else, had like 5 years on the house, 4 years on the truck and ~20 years on the trailer! He told them they would have to work at least 5 years to pay off the house and truck before they could retire and his mom was like "but I already told them I was retiring" It is so sad it is funny. But I think there are lots of people like this out there.

[rx7boi]

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Regarding saving, I think most people just have no idea what they are doing and assume CPP and OAS will cover them when they retire. Perfect example, my buddies parents just came to him bragging about how they were both 65 now and ready to retire and asked if he could help them apply for CPP and OAS online. He did for both of them and the total they were going to get was something like $2,500 per month. He said they had blank looks on their faces and said "well that doesn't even cover the mortgage, truck payment and trailer payment..." He then asked them what else they had saved and how many more years of payments they have. Turns out they had saved nothing else, had like 5 years on the house, 4 years on the truck and ~20 years on the trailer! He told them they would have to work at least 5 years to pay off the house and truck before they could retire and his mom was like "but I already told them I was retiring" It is so sad it is funny. But I think there are lots of people like this out there.

This is true. I can't fathom how anyone thinks they are going to be okay with outstanding debt on a house, truck, and trailer at the time of retirement.

I can get having dismal savings going into retirement but this anecdote paints a completely different picture of ignorance and lack of planning.

[Tik-Tok]

Holy fuck. They never ONCE looked into it? People are so dumb it's shocking. OAS and CPP aren't supposed to be covering your brand new truck and trailer payments FFS.

[ExtraSlow]

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Regarding saving, I think most people just have no idea what they are doing and assume CPP and OAS will cover them when they retire. Perfect example, my buddies parents just came to him bragging about how they were both 65 now and ready to retire and asked if he could help them apply for CPP and OAS online. He did for both of them and the total they were going to get was something like $2,500 per month. He said they had blank looks on their faces and said "well that doesn't even cover the mortgage, truck payment and trailer payment..." He then asked them what else they had saved and how many more years of payments they have. Turns out they had saved nothing else, had like 5 years on the house, 4 years on the truck and ~20 years on the trailer! He told them they would have to work at least 5 years to pay off the house and truck before they could retire and his mom was like "but I already told them I was retiring" It is so sad it is funny. But I think there are lots of people like this out there.

People need to have this conversation with their parents years ahead of this point if there is even a chance of this situation.

My basic rule of thumb is that you need to be payment free (including mortgage) for a decade before you can retire.

[msommers]

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Regarding saving, I think most people just have no idea what they are doing and assume CPP and OAS will cover them when they retire. Perfect example, my buddies parents just came to him bragging about how they were both 65 now and ready to retire and asked if he could help them apply for CPP and OAS online. He did for both of them and the total they were going to get was something like $2,500 per month. He said they had blank looks on their faces and said "well that doesn't even cover the mortgage, truck payment and trailer payment..." He then asked them what else they had saved and how many more years of payments they have. Turns out they had saved nothing else, had like 5 years on the house, 4 years on the truck and ~20 years on the trailer! He told them they would have to work at least 5 years to pay off the house and truck before they could retire and his mom was like "but I already told them I was retiring" It is so sad it is funny. But I think there are lots of people like this out there.

Wait a minute. I thought it was only millenials wanting the latest iPhone who had no idea how to save and were bad with their money?

[bjstare]

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Wait a minute. I thought it was only millenials wanting the latest iPhone who had no idea how to save and were bad with their money?

Who do you think taught them how to live that way?

[msommers]

Oh, no doubt. It's always comical reading comments where it's the latest generation that is the problem.

[ercchry]

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People need to have this conversation with their parents years ahead of this point if there is even a chance of this situation.

My basic rule of thumb is that you need to be payment free (including mortgage) for a decade before you can retire.

Having children is the retirement plan! CPP, OAS, reverse mortgage, and allowance from children! Live high on the hog and leave them nothing!!!