In this episode, we welcome back one of Canada's most trusted and widely read financial experts to discuss the state of Canadian personal finance. Rob Carrick is a columnist for The Globe and Mail, where he has brought his boots-on-the-ground perspective to readers for more than 20 years. He also co-hosts the Stress Test Podcast, where regular Canadians offer real-life perspectives on the biggest stress tests that their personal finances face in the wake of COVID-19. Tuning in, you’ll find out which issues are at the forefront of Rob’s readers’ lives. Next, he shares his perspective on GICs and ETFs and draws a comparison between affordable housing today and the mutual fund market of 20 to 30 years ago. We talk about the lack of comprehensive advice that Canadians are receiving from their planners, the state of affordable housing in the country, and why so many Canadians say they are giving up on home ownership altogether. We also compare housing returns to the stock market and discuss successfully using a reverse mortgage, the non-financial challenges faced by retirees, and more. For a comprehensive overview of the state of personal finance in Canada (and some practical advice for protecting yourself and prospering in a challenging economy), don’t miss today’s episode!
Timestamps:
0:00:00 Intro
0:03:07 Rob describes the big topics currently affecting his readers
0:04:41 Whether people are playing it too safe by piling into GICs chasing after 5% rates
0:09:44 Whether or not Rob has a favourite issuer for asset allocation ETFs
0:10:51 How the ETF market today compares to the mutual fund market 20 years ago
0:16:05 What Rob thinks about the long-proclaimed death of the 60/40 portfolio
0:23:04 How much of the housing affordability issues are related to people expecting too much when they look for a house
0:27:18 Where people who want to get into the housing market in the next 5 years should be parking their money
0:31:41 How common it is for parents to sell half of their house to their kids
0:35:36 Who has been hit worse in the last year or so: renters, or new home owners
0:39:27 What Rob thinks about the idea that people can rely on the equity in their home for retirement
0:43:57 The non-financial challenges of entering retirement
0:48:28 The percentage of parents helping their adult kids financially
0:53:09 The percentage of adult kids helping their parents financially
0:56:43 What adult children should be talking to their parents about to avoid this situation
0:58:28 What Rob would do to help the younger generation learn about the financial planning process
Links From Today’s Episode:
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
Rational Reminder Website - rationalreminder.ca/
Shop Merch - shop.rationalreminder.ca/
Join the Community - community.rationalreminder.ca/
Follow us on X - / rationalremind
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Benjamin on X - / benjaminwfelix
Cameron on X - / cameronpassmore
Cameron on LinkedIn - / cameronpassmore
Mark McGrath on X - / markmcgrathcfp
Mark McGrath on LinkedIn - / markmcgrathcfp
Rob Carrick - robcarrick.ca/
Rob Carrick on X - / rcarrick
Rob Carrick Email - carrick@globeandmail.com
Stress Test Podcast - www.theglobeandmail.com/stres...
Carrick on Money - www.theglobeandmail.com/carri...
The Globe and Mail - www.theglobeandmail.com/
‘Young adults are giving up on home ownership, and a lot of them are furious about it’ - www.theglobeandmail.com/inves...
How Not to Move Back in With Your Parents - www.amazon.com/How-Move-Back-...
Wealthsimple - www.wealthsimple.com/
Episode 39 - rationalreminder.ca/podcast/39
Episode 172 - rationalreminder.ca/podcast/172