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Discussion Starter #1
Is it just me or does it seem like the projection made on this show realty tv show by Gail Vaz-Oxlade are exaggerated?

For example, in one show a couple is able to save $200/month, and Gail says the'll have half a million dollars after 30 years if it's put into an RRSP account.

It seems like the money would have to have a compound interest rate of about 11% for the entire duration to reach half a million dollars. There are obviously no savings accounts that offer this, and equity returns don't compound the same way.
 

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Are you sure the half million is JUST the RRSP, or their net worth in total (including house, etc)?

I dont know, i've never watched it...
 

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GVO is not a financial advisor and most of her recommendations are purely behavioural: i.e., this is how you should organize your behaviour. Quantitative finance, it ain't!

Reminds me of Dave Ramsey, another perpetual favourite for the deeply in debt crowd. He asserts you can "easily" make an 11% compounded return over the long term in generic mutual funds. Hmmm....perhaps that's where Gail got the number!
 

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That return is quite optimistic, although possible, I doubt the average person could obtain that.

Otherwise, considering the situations she deals with, I feel she does a good job of getting them on track.

I love when they have to take money out of a cookie jar. It just looks funny with adults succumb to this. (a sad reality) Forces them to think, budget, and spend appropriately.
 

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They might start with $200, but once their debts are paid, they are supposed to use half of the extra cash for savings. So it's probably more than $200.
And at that point they are often dealing with upwards of $700 a month. She also uses the "reinvest your tax return" line as well, which could add another 1-2k. Also in her numbers is 65 as a retirement age, which is fine, but it's often 30-35 years away for most of the people on the show.

So you figure, $700 a month, plus $1200 in a tax return a year, over say 32 years, and your return would need to be 6.6% to make a million.
 

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The worst is the projection of debt calculations. We all know that the bank would stop lending these loosers money long before they got there.

These people need a psychologist, not a financial advisor.
 

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Perhaps a better projection would be: "You'll have to claim bankruptcy in (insert time period here). Doesn't make for great TV though.
 

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Perhaps a better projection would be: "You'll have to claim bankruptcy in (insert time period here). Doesn't make for great TV though.
Touché! I imagine it's considered reality tv so they have to exaggerate to keep the shock value going.... after hearing about a couple that was 200K in debt it wouldn't be so shocking to hear about a couple who was "only" 80K in the hole!
 

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Speaking of this show, has anyone watched Princess yet? I saw it for the first time this week and wasn't impressed. But then I can't stand women who spend thousands of dollars a month only to look like trash you would pick up in a night club.... I figured she will be back to her old ways in no time.
 

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Discussion Starter #12
I did see the new Princess show. Money can definitely make people look better but I can only see it being worthwhile if you're making money with your looks, like if you're on tv/making movies/modelling, etc. Otherwise, it's just deceptive.
 

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TIME is the key to her predictions. as mentioned age 65 retirement is a loooooong way off. you can save millions with 30-35 years, even with a small rate of return.

as for the Princess show, we have one that lives next door. an Organic Princess. educated woman that is sending her family into the poor house. $90 for a 16 pound turkey? $22 for cranberries?? all with no proof that the food is any better

poor woman needs to learn about pesticide free products...
 

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The worst is the projection of debt calculations. We all know that the bank would stop lending these loosers money long before they got there.

These people need a psychologist, not a financial advisor.
I have my doubts about this. A lot of banks seem to like to continue to lend and lend... Or they start borrowing from friends / family.



There's another new show on called 'burn my mortgage', Tuedsay nights I believe. First one was ok, but was basically a family that spends outrageously in a couple of area's, has a giant mortgage. Even small down payments can make a big difference over 20 years. They also were like mid 40's and had like 25yr's left on the 400k mortgage... um... I didn't know what to say.
 
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