It’s easy when you’re an ‘institute’ to eliminate an entire source of equity when you’ve got a narrative to advance.
The results are startling — and explain why seniors’ poverty is set to rise unless action is taken to tackle the retirement savings crisis, including boosting the GIS and expanding CPP.
John Michael McGrath dug down.
Report on retirement security from the Broadbent Institute values housing wealth at zero. https://t.co/zmPWAC8kIM pic.twitter.com/yRigjfekpZ
— John Michael McGrath (@jm_mcgrath) February 16, 2016
Predictably, the leftist government solution to help seniors who haven’t saved for retirement will be to steal from seniors who have saved for retirement.
There’s a Broadbent Institute? And it does economic analysis? Jeez! That’s like having a Jack The Ripper Institute for Wayward Girls.
Thing about the NDP, you can tell when they’re lying because their lips are moving.
Bingo! Always the leftist mantra is to create a class war.
They have a point. Didn’t Layton live in subsidized public housing and isn’t Mulcair mortgaged to the hilt, so yes these two gents always had virtually $0 home equity.
In theory there is nothing wrong with this. If you pay off your mortgage and wish to continue living in your home until your death then the home is not a liquid asset. BUT, this also means you don’t need to use your pension money for rental expenses, you could take in a border for supplemental income (but you wouldn’t claim it because you will hate the government by then) AND if you didn’t save for your retirement BUT did pay off your mortgage you would be one of the unfortunate fortunate people who had to sell their family home because they didn’t save enough EXTRA money for retirement, but at least had options.
Regardless we are still in the early days of boomer-destruction. The vast majority of those old farts were born between 1957 – 1962 and aren’t due to retire for another 7 – 12 years. By then they will have user fees for bowel movements.
I made multiple sacrifices throughout my adult life to purchase, improve, and maintain, a home in a very upper middle class community. REAL sacrifices. No dinners out. No vacations. Quite a bit of “deferred gratification”. The end result, is that my home is my primary (and significant) retirement asset. Retirement assets can easily be built … slowly … over time. This is true of ALL quality investments, be it real estate or equities. But it requires discipline, basic intelligence, and a sacrifice … or you can just … “live for today” and hope that you can FORCE the younger taxpayers to make all the sacrifices on your behalf.
Kenji:
Here’s hoping you were able to accumulate some cash flow also, as your government will wish to progressively share your financial acumen, frugality and good fortune.
There are options of course.
Room rentals for refugees maybe.
I heard that the biggest push for increasing CPP is that Ontario’s public union defined benefit plans are seriously underfunded. By using other people’s money they can still promise a lavish retirement.
Or is it that the government needs a fresh pot of money to “invest” in their friends’ projects?
And let’s not forget the upcoming ORPP. Otherwise known as the “Wynne Slush Fund”…
I have no plans to retire. Nice thing about being a doctor is that there’s no shortage of work and the hardest thing I have to do is turn down work.
My house is fully paid off, don’t live in a large city, live in an area with a shortage of doctors and can just slow down as I get older. It also helps that I like what I do.
House prices in BC are very inflated and my primary interest in a property is whether I’d like to live there long term. Lucked out and got a huge lot so lots of garden space to grow my own food if necessary. The only seniors who will make money on their houses are the ones who bought a house in Vancouver for $10,000 in 1950.
Remember: You didn’t build that. The government did. You didn’t pay off your mortgage, the government did when they let you keep some of your income. Anyway, you’re just lucky and made artificial profits because of the housing bubble (at a shocking 4% average per year compounded growth over the last 20 years in Victoria). It’s not “fair” that government doesn’t get more taxes out of you. C’mon join the taxaction team.
IOW you’re speculators. That’s evil. Let’s impose capital gains on all those rich Canadians who are hurting the poor almost as much as government carbon taxes and electricity hikes. No not really, but it’s the narrative that counts – you deserve to have your ill gotten gains confiscated.
Anyway, wouldn’t it be easier if we all rented from the government? After all aren’t we all a part of government? (Borrowed shamelessly from Obama 2012 POTUS campaign)
the reason I did not stash thousands every year in an RRSP is I figure by the time I would be withdrawing said funds, da gubbamint of the day would be grabbing the first 80% in taxes. regardless which party, it only takes 1 of them to put the tax in place and all the rest treat it like a heroin fix.
my ‘savings plan’ is my house which has more than doubled in value since I bought it, partly overall trend, BUT mostly because of thousands of hours and dollars in improvements which I have knowledge, tools, and time to do. it’s part of my family’s strong work ethic. come time to travel to Europe (assuming the muzzies havent completely taken over) the plan is to wait until optimum mkt conditions. it will be my last house, the 7th I have owned.
God bless Jim Flaherty and his firm stance on mortgage rules.
I also have no plans to retire. I’ve been self-employed for most of my adult life, and maintaining my excellent health has always been my highest priority. The house is paid off, I have no debt, and no extravagant needs.
I enjoy my work and there’s more work available than I’m interested in doing. I now select jobs based on the people I’ll work with and how low the ‘hassle factor’ will likely be. I always have time for some jobs and never have time for others.
I’ve found that if I’m happy and healthy the money takes care of itself. If we play it right, the older we get the more important time is over money.
I have no plans to retire. Nice thing about being a doctor is that there’s no shortage of work and the hardest thing I have to do is turn down work.
My house is fully paid off, don’t live in a large city, live in an area with a shortage of doctors and can just slow down as I get older. It also helps that I like what I do.
House prices in BC are very inflated and my primary interest in a property is whether I’d like to live there long term. Lucked out and got a huge lot so lots of garden space to grow my own food if necessary. The only seniors who will make money on their houses are the ones who bought a house in Vancouver for $10,000 in 1950.
Is it mockery or irony?
The parasites have used force of government to redistribute the return on productive work from the producer to reward themselves, the useless and clueless.
In the process they have stolen 30-50% of the producers income.
Causing a collapse in productive output.
Now they berate these same producers, for their inability to set aside wealth for their future ….
Seems a Marie Antoinette moment to me.
The irony, unfortunately, is that these professional trough feeders have no idea where wealth comes from, they are the useless and clueless. With delusions of adequacy.
Congrats Jean ! You described my exact existence. In fact, I have NEVER really envisioned “retirement”. It is truly a blessing to have BUILT something of a business on your own. On your own terms. My ONLY problem in life is the 15% Self-employment Tax that the IRS takes off the top … BEFORE … slamming me with the Federal Income Tax. I KNOW how hard I work for every dollar … and here come the parasites and money-wasters shoving their hands in my pockets … ripping me off.
I have … although you gave me a something to really think about … Maybe I should GET RICH like Catholic Charities (among others) by housing a group of Obama’s “unaccompanied minors” that he has invited to America (without asking Congress). I might as well GRAB as MUCH “refugee stimulus” $$$$$$$ CASH $$$$$$$$. Hell !? Paul Ryan VOTED to APPROVE all that spending … so I guess I can still be a “good” Republican while I PERSONALLY PROFIT from the destruction of America. Why … some would say that I am a real SUCKER … if I don’t stick my hand out and TAKE TAKE TAKE … !! from the taxing and borrowing Feds. Thanks Paul ! for approving yet another massive DEFICIT budget !! Woo Hoo !! I’s gonna git RICHHHHHHHHHH !!!!
Your home may not be ready cash, but for most retirees they are not paying a mortgage so the day to day bills are entirely manageable on most fixed incomes from CPP and OAS for a couple. The BIGGEST problem is ever increasing property taxes to fund vanity projects of city councils and/or unfunded pension plans for city employees. NOT fixing streets, sewers etc. It happened to two long term residents on my crescent who finally gave up – they could manage the power, heat, water etc,, but not ANOTHER property tax increase., So they cashed out (both were the original owners having purchased the homes 40 years ago for maybe $15,000 and selling for $300,000 and will use the money to rent apartments, but they would have rather been in their family home with neighbours that they knew. But as one woman said – I’ll survive, but not to sure about my grandkids!
I remember years ago when Broadbent was the leader of the NDP, he had suggested that there be a “one time tax” of 10% on RRSPs. Looks like the nutcase just can’t drop the idea!
You probably don’t remember the famous Bob Rae 2 line tax return.
1. How much money do you earn?
2. Send it in.
As the leviathan state becomes more broke and desperate, they will eventually have to means test for income and assets before handing it out or to determine who pays for medical services and who does not. A low income individual with significant real estate assets wont get off the hook. This study was done this way to paint a bleaker picture to justify more looting and thuggery by their political comrades.
It’s all very well to say that one’s home is also one’s retirement fund: the issue becomes very quickly where do you want to live if you have to cash in on said fund (as in sell your home). We are fortunate in that we have saved funds so we can finance our stay in our home. Basic CPP, OAS, and a few savings accounts may keep a senior in a home for a fair time; replacement of furnace or even water tank (not even mentioning roof) can be a killer.
The worth of the Broadbent Institute is zero.