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Income tax on the GIC income plus the spread

I don't know of any GIC that come out ahead
Sure. I keep all mine in my RSP but I do understand that I am just deferring the tax issue. GICs are usually still ahead of burying the money in my backyard so until someone comes out with something else with similar guarantees, that offer a better rate of return, I will keep rolling my allocation to GICs over as they come due.

I believe that at some point in a person's life, as they age and if they are fortuneate enough, they transition from a person needing to make more money into a person who needs to ensure they don't lose what they have. I believe I have reached that point. Since one cannot be sure that inflation will not render this allocation almost worthless (in other words one can still lose it) I also diversify my portfolio in other investments that have had a much better experience in keeping up with inflation. I recommend everyone do this, to some degree, unless you feel you are in about the last 5 years of your life.
 

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Under pressure from Erdogan, the central bank cut key interest rates from 19 to 15 percent in September, driving a free-fall in the lira.

people in Turkey are protesting. What am I missing here? Turkish economy more developed compared to Canada. Are we going to have double digits interest rates next year? I hope so.
 

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If interest rates go up here the RE market will bleed. Unlike Turkey we need to keep people paper rich and passive

Fed seem to indicate they won't raise rates. People don't protest the money printer. People like the money printer

Don't worry it's transitory. You'll be paper rich
 

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If interest rates go up here the RE market will bleed. Unlike Turkey we need to keep people paper rich and passive

Fed seem to indicate they won't raise rates. People don't protest the money printer. People like the money printer

Don't worry it's transitory. You'll be paper rich
That's the thing, most people don't understand why high inflation is bad, or even really realize it.
I've recently heard lots of complaints about inflation, but indirectly about how expensive "things are", they're talking about it in the aisles of stores.

But people notice a 10% increase in price way less than a 10% drop in property values.
 

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That's because a property is a leveraged asset with a higher starting dollar amount than a loaf of bread.
Funny thing about bread and inflation. I got into the sourdough craze during the early pandemic. It was mostly a waste of time but now I buy sourdough

Well the sourdough boules I buy are suddenly like half the size for the same price. Like not even subtle at all. Same thing all through the store could be worse here than Canada

Stores have an excuse now to raise prices or reduce quantity and people have accepted it. Several people at work cashed out their RE and ran for the hills
 

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Well the sourdough boules I buy are suddenly like half the size for the same price. Like not even subtle at all. Same thing all through the store could be worse here than Canada
Shrinkflation. :( Legend has it that way back in the 1950s, Twinkies were way bigger than they are now. I wonder what other stuff will get shrunk to ridiculous levels over the next few decades...
 

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Shrinkflation. :( Legend has it that way back in the 1950s, Twinkies were way bigger than they are now. I wonder what other stuff will get shrunk to ridiculous levels over the next few decades...
Chocolate bars in the 1980's 65 grams... today 45 grams. Same with chip bags. The price has easily doubled or tripled, too.
 

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You'd think "shrinkflation" would have shrunk away our stuff to nothing at all by now though. Jeez I remember shrinkflation being talked about by my parents 20 years ago. How much more shrinking could happen? The product still exists, at least!

This week at the grocery store I tried to be as objective and unbiased as I could when looking at prices of the things I usually, or unusually buy. It was all just by memory of course so not perfect... But I think in the end I concluded that I didn't seen any noticeable inflation from ~2 year ago. Everything still had the same prices or sale prices that I used to pay, if I focused on groceries as a whole. I think milk and butter have gone up a bit, but everything else seemed normal, including produce and meat.

It's really hard to judge just what "grocery prices" even means exactly...like the sale price? 50% of the things in the store are "on sale" this week or that and it rotates around. You try and buy sale items, or almost everyone does, to some extent, which varies based on need/budget/desire.

I think my vast grocery bill increase can entirely be attributed to lifestyle changes due to the coronavirus upheavals.
 

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It's really hard to judge just what "grocery prices" even means exactly...like the sale price? 50% of the things in the store are "on sale" this week or that and it rotates around. You try and buy sale items, or almost everyone does, to some extent, which varies based on need/budget/desire.
I'm pretty good at math until an american grocery store has 50 options all with various sales schemes, all the trendy buzz words, and all different quantities of course. I think the american grocery store is the epitome of marketing and manipulation. The bread one was easy because it's the only one from the bakery

Groceries are something I don't even think about the price that much because I'd rather just eat well. My grocery bill stays very consistent but changes drastically by region. Like annual grocery spending went up significantly in the US. Even across the US and Canada is varies more by location. Tourist and isolated areas cost more.

Canada has very cheap electricity and things like milk and butter I think are even controlled. Here in the US at least inflation is very blatant everywhere now. There are letters and signs everywhere announcing price increase and it's accepted now so why not raise your rates

Consumer prices aren't good indicators for inflation anyways. Businesses have profit margins and can set prices based on what the consumer is willing pay. A landlord can't just raise rent on existing tenants so you have to look at rent on new tenants. No one is going to lower prices later so it trickles into everything
 

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People complain about 4% inflation while their homes went up 30% last year or went up 10X since they bought it in 1980.

We paid $78.000 for a home in 1980. Today it would sell for $800,000 or more.

Fellow baby boomers like Garth Turner should give it a rest already.

I feel badly for our son's generation who work their butts off and can't afford a home, but boomers......get real.
 
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People complain about 4% inflation while their homes went up 30% last year or went up 10X since they bought it in 1980.

We paid $78.000 for a home in 1980. Today it would sell for $800,000.
Yes sags

The people complaining didn't get to buy a house for $78000 in 1980 because they weren't born yet

Boomers are clueless
 

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Yes, even at 21% interest rates a home was affordable for an average couple.

So we signed a 5 year term and watched our pennies for the first term. In future renewals, interest rates fell, we owed less, and payments went down.

Today.....home prices rose faster than they could save the down payment, and even with record low interest rates people can't qualify to buy a home.

If I was the housing czar of Canada.......I would fix this.
 
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