Comments on: Wealth of Canadians: Assets http://www.canadiancapitalist.com/wealth-of-canadians-assets/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Canadian Capitalist http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14201 Canadian Capitalist Tue, 12 Dec 2006 13:46:13 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14201 Phil: I found this statistic in the book "Bogleheads" that I just started reading: "Take 100 young Americans starting out at age 25. By age 65, one will be rich and four will be financially independent. The remaining 95 will reach the traditional retirement age unable to self-sustain the lifestyle to which they have become accustomed." Phil: I found this statistic in the book “Bogleheads” that I just started reading:

“Take 100 young Americans starting out at age 25. By age 65, one will be rich and four will be financially independent. The remaining 95 will reach the traditional retirement age unable to self-sustain the lifestyle to which they have become accustomed.”

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14177 Canadian Capitalist Tue, 12 Dec 2006 02:25:42 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14177 Phil: You are correct about Statscan's definition of median. The average is the also the traditional definition (sum of all household RRSP amounts / no. of households). It doesn't tell you what the maximum amount is; it could be anything. Also, note that the median family had $68,000 in pension assets (if you include what Statscan calls the EPP or employer-sponsored pension plan). Close to half the family units had an EPP. I would consider that to be not nearly enough, but I guess most people are counting on the OAS & CPP for their retirement. Phil: You are correct about Statscan’s definition of median. The average is the also the traditional definition (sum of all household RRSP amounts / no. of households). It doesn’t tell you what the maximum amount is; it could be anything.

Also, note that the median family had $68,000 in pension assets (if you include what Statscan calls the EPP or employer-sponsored pension plan). Close to half the family units had an EPP. I would consider that to be not nearly enough, but I guess most people are counting on the OAS & CPP for their retirement.

]]> By: Phil S http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14172 Phil S Mon, 11 Dec 2006 23:18:44 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14172 Hi CC. So you're saying that Statscan's definition of "median" is the traditional definition, meaning the halfway point between the largest RSP account and smallest RSP account, which is totally different from the weighted average? Even if that is the case, then if we assume the smallest RSP at age 64 is zero, then mathematically the largest RSP can really only be double, so $120K. But even that seems rather low to me... You've spent your entire working life putting money into an RSP until age 64 and all you'd have to retire on is $120K? I guess that's better than $60K or the poor fellow at zero, but by no means would I consider that a comfortable retirement free of financial worries! Hi CC. So you’re saying that Statscan’s definition of “median” is the traditional definition, meaning the halfway point between the largest RSP account and smallest RSP account, which is totally different from the weighted average? Even if that is the case, then if we assume the smallest RSP at age 64 is zero, then mathematically the largest RSP can really only be double, so $120K. But even that seems rather low to me… You’ve spent your entire working life putting money into an RSP until age 64 and all you’d have to retire on is $120K? I guess that’s better than $60K or the poor fellow at zero, but by no means would I consider that a comfortable retirement free of financial worries!

]]> By: FrugalTrader http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14161 FrugalTrader Mon, 11 Dec 2006 18:24:52 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14161 Another great numbers post to put things in perspective. I guess to a lot of people financial freedom just isn't as important as it is to others... namely me. :) FrugalTrader http://www.MillionDollarJourney.com Another great numbers post to put things in perspective. I guess to a lot of people financial freedom just isn’t as important as it is to others… namely me. :)

FrugalTrader
http://www.MillionDollarJourney.com

]]> By: Eric http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14155 Eric Mon, 11 Dec 2006 16:10:52 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14155 This may not be the best place for this question, seeing that's not related to the post. I'm looking for some web tools for looking at canadian stocks, charts, filters, etc., maybe even realtime pricing or order book info. So far I've been using the globe and mails tools which aren't that good. Any suggestions? This may not be the best place for this question, seeing that’s not related to the post.

I’m looking for some web tools for looking at canadian stocks, charts, filters, etc., maybe even realtime pricing or order book info. So far I’ve been using the globe and mails tools which aren’t that good. Any suggestions?

]]> By: Loki http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14154 Loki Mon, 11 Dec 2006 15:46:50 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14154 "How on earth can someone retire with a measly $60K RRSP?" It's easily achieved by doing any two or three of the follwing: 1. Pay off your mortgage 2. Have a great pension plan 3. Invest outside an RRSP in things like Canadian equities that pay high dividends. 4. Live beneath your means. Remember - RRSP's aren't for everyone :) “How on earth can someone retire with a measly $60K RRSP?”

It’s easily achieved by doing any two or three of the follwing:

1. Pay off your mortgage
2. Have a great pension plan
3. Invest outside an RRSP in things like Canadian equities that pay high dividends.
4. Live beneath your means.

Remember – RRSP’s aren’t for everyone :)

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14153 Canadian Capitalist Mon, 11 Dec 2006 15:29:37 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14153 Phil: The average RRSP values are much higher than the median. For 35 to 44 it is $49,100 and for 55 to 64 it is $124,500. It suggests that a small fraction are diligent with their finances and the majority as Rob says are messed up. Getting Rich: The data does not indicate whether someone has never owned a home. It is simply a snapshot of current homeowners. Phil: The average RRSP values are much higher than the median. For 35 to 44 it is $49,100 and for 55 to 64 it is $124,500. It suggests that a small fraction are diligent with their finances and the majority as Rob says are messed up.

Getting Rich: The data does not indicate whether someone has never owned a home. It is simply a snapshot of current homeowners.

]]> By: GettingRichTogether.blogspot.com http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14152 GettingRichTogether.blogspot.com Mon, 11 Dec 2006 14:33:50 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14152 From these numbers, I would infer that 25% of people never own a home. I find this surprising. When coupled with only 60K in RRSP, its scary. Why dont I see more elderly homeless? From these numbers, I would infer that 25% of people never own a home. I find this surprising. When coupled with only 60K in RRSP, its scary.
Why dont I see more elderly homeless?

]]> By: Rob http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14150 Rob Mon, 11 Dec 2006 13:54:34 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14150 One other comment on this posting... I would argue that the data of those with defined benefit pension plans is understated. The commuted values of these pensions (particulary indexed pensions for teacher, govt, police, etc) are invariably understated to what I believe is the true value. One other comment on this posting…

I would argue that the data of those with defined benefit pension plans is understated. The commuted values of these pensions (particulary indexed pensions for teacher, govt, police, etc) are invariably understated to what I believe is the true value.

]]> By: Rob http://www.canadiancapitalist.com/wealth-of-canadians-assets/#comment-14149 Rob Mon, 11 Dec 2006 13:53:16 +0000 http://www.canadiancapitalist.com/2006/12/10/wealth-of-canadians-assets#comment-14149 Phil, your disbelief is common among people who are actively working on improving their finances, are good savers, etc. People in this group cannot believe thta themajority of people are so messed up financially. It would be interesting to create a fictional person with 'median' data, and project how (badly) they will end up in retirement. Phil, your disbelief is common among people who are actively working on improving their finances, are good savers, etc. People in this group cannot believe thta themajority of people are so messed up financially.

It would be interesting to create a fictional person with ‘median’ data, and project how (badly) they will end up in retirement.

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