Callaghan Wealth Management

08/11/2023

https://www.theglobeandmail.com/opinion/article-the-part-of-our-housing-conundrum-politicians-dont-want-to-talk-about/

It's just math. The disappearing Canadian dream of single detached home ownership explained.

They are reliant on the tax revenue that comes from new builds, and aren’t likely to lower those fees any time soon

07/12/2023

https://www.theglobeandmail.com/business/economy/article-bank-of-canada-interest-rate-july/

I bet this wasn't what the BOC envisioned when they were handing out bonuses and toasting themselves on a job well done back in 2020/2021.

To date, they seem about 6 months to a year behind the curve on every move made so in my estimation 1 or 2 too many increases.

They finally acknowledged publicly what's responsible in the article being government spending, unsustainable immigration numbers and the fact that they pumped up real estate values so far that half the country decided to retire ahead of schedule.

Forgive them if they missed carbon taxes, increasing size of the public service and new contracts all around while the average citizen is straining from so many missteps that were so avoidable.

The central bank raised its key interest rate by a quarter percentage point to 5 per cent and pushed out the timeline for getting price pressures under control

05/09/2023

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-what-the-swedes-and-popcorn-can-teach-us-about-retirement-savings/ If in doubt-keep it simple!

03/20/2023

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-gordon-pape-canadians-are-being-short-changed-on-deposit-insurance/

Gordon Pape has been telling it like it is for far longer than I can remember. In this article he breaks down that even though the Canadian banking landscape is on pretty solid footing that it's time the CDIC updated their coverage protection. Better to have it and not need than need it and not have it.

The collapse of Silicon Valley Bank has heightened public awareness of its importance

03/08/2023

https://www.theglobeandmail.com/business/article-bank-of-canada-interest-rate-announcement-march/

Widely expected. I'll add; 1) Canada cannot contain inflation on its' own given our need for imports but he had better signal that his foot is coming off the brakes later in the year. 2) Could experience a mild recession?-most certainly we will and those most affected are those with big debt 3) Most of the labour market strength is that from government hiring and temporary foreign workers. The latter are required to fill vacancies for the retiring boomers but the rest is just swelling the government bureaucracy.

The central bank is pausing its year-long campaign to increase borrowing costs while leaving the door open to further rate hikes if inflation doesn’t slow as quickly as expected

01/06/2023

https://www.theglobeandmail.com/business/article-orthodontist-corporate-ownership/

A number of months ago I wrote about the increasing "corporatization" of family run businesses that were traditionally passed from professional to professional.

Congratulations for those that work to provide the best care for their patrons and thwart the increasing lack of choice in society.

Corus Orthodontics offers network of clinics owned and operated by health care professionals

09/27/2022

https://www.theglobeandmail.com/investing/personal-finance/article-pierre-poilievre-cpp-premiums-tax/

I'd have to agree with Mr. Carrick's clarification to the Conservative Leader's commentary that CPP contributions are not a tax on individuals and most certainly necessary.

It could be argued that they most certainly are a tax increase for the businesses which have just survived a pandemic, minimum wage increases and now rising interest rates and inflation.

Great political theatre but a nothing burger here.

Canada Pension Plan premiums are not a tax, they’re a payment into a retirement savings plan that is guaranteed to pay out for as long as you live and adjusted for inflation

09/06/2022

And then it happened... 300,000 Canadian boomers all said goodbye at the same time to the workforce.

Our version of the phenomenon is here in the form of a retirement wave – over the past 12 months, a record 300,000 workers retired

08/16/2022

While a great starting point for discussion Rob's article falls short in what this means down the road.

If one does not get into the housing market by the time they are in their early 30's one does not own a house by the time "traditional" retirement is contemplated. Thus, they may not have the cash flow to continue to pay rent with reduced income and have no asset that keeps pace with inflation to ever draw from when required.

Costs aside, more creativity is needed by government to find more affordable options to buy and to reduce the control of future housing by corporations, speculators and foreign entities.

Unaffordable rent financially paralyzes people by limiting their upward mobility and resilience, says Rob Carrick

08/10/2022

A couple of takeaways...

One, that the policies of transitioning largely oil-based economies on a dime to a technology of the future might actually require a little more thought. Two, that the inflation that has been created by excessive government spending and accommodative policies by central bankers means that inflation will exist for some time which always places the highest strain on the lower middle class, pensioners and poor.

The annual rate of U.S. inflation slid to 8.5% in July from 9.1% the previous month as falling gasoline costs offered some relief for American consumers