Canadians 'drowning in debt': 47% will borrow to cover costs, survey says

[rubecube]

Originally Posted by Shazam

You don't deserve jack ####.

I expect nothing from my parents. I will probably get nothing. Neither from the in-laws.

I wasn't saying I did?

[peter12]

Originally Posted by Shazam

You don't deserve jack ####.

I expect nothing from my parents. I will probably get nothing. Neither from the in-laws.

Haha quite the overreaction.

[btimbit]

Originally Posted by rubecube

I wasn't saying I did?

He didn't quote you, guessing he meant in regards to that study about people expecting inheritance.

And I agree

[flames_fan_down_under]

Originally Posted by Sliver

Something getting a little lost in this thread is that there are people doing well and it is okay to spend money and have fun. Just because somebody eats out, goes to movies, travels, has cool cars, has a nice house, etc. doesn't necessarily mean they're bad with money. Maybe they're on top of all their savings and are enjoying the excess. Maybe they're even being frugal relative to their income.

Another kind of weird thing is there aren't really many options for tapering back work. I know some people that would be very happy to make 20% less for 20% more time off; however, there isn't really that option for many people in the work-a-day world. So there you are with the high salary and limited time off, so you spend it on nice things and entertainment. Nothing wrong with that.

Yep. This is true for a lot of myself and my friends. None of us are rich by any means, but most of us just all value things differently. I know a couple that loves dining out, they love checking out new restaurants, and hosting events, they also share a 10+ year old Nissan Altima and live in a modest place and are very happy. Myself and my partner like to travel, we dine out rarely and share a crappy car, so we put our budget towards what we value. However this is coming from a place of privilege I suppose, as I don't have children, I make more than the median household income, my job affords me a lot of time off, and I don't have any student debt.

[blankall]

Originally Posted by flames_fan_down_under

Yep. This is true for a lot of myself and my friends. None of us are rich by any means, but most of us just all value things differently. I know a couple that loves dining out, they love checking out new restaurants, and hosting events, they also share a 10+ year old Nissan Altima and live in a modest place and are very happy. Myself and my partner like to travel, we dine out rarely and share a crappy car, so we put our budget towards what we value. However this is coming from a place of privilege I suppose, as I don't have children, I make more than the median household income, my job affords me a lot of time off, and I don't have any student debt.

I actually live a similar way - being 39 and not having children....which may change shortly - and spend more on food/booze and travel than I should. I drive an old Toyota, and prefer to spend on "experience".

That being said, financial planning goes a lot further than cutting back on minor discretionary spending. You can torture yourself by denying yourself all the small things in life, but that gets you nowhere if you make the larger decisions poorly.

[PsYcNeT]

Based on this conversation I think we can all agree that Estate Taxes should be much much higher.

[you&me]

Originally Posted by PsYcNeT

Based on this conversation I think we can all agree that Estate Taxes should be much much higher.

Based on what?

I see this repeated all the time and I don't really get it.

To be clear, I stand to inherit exactly $0 from my parents and that's if I don't end up covering some of their expenses in their later years.

However, I work very hard and have taken some calculated risks to provide for my family. I don't quite understand why I shouldn't be able to pass on my accumulated after-tax funds and assets to my children? Because not everyone has something to pass along? Is that the same as "because fairness"?

Edit - ironically, these calls for increase inheritance taxes often come from people my age and younger (say 20-35)... the same age bracket that stands to be the beneficiaries of the largest transfer of wealth in history as our boomer parents die off.

[White Out 403]

Originally Posted by you&me

Based on what?

I see this repeated all the time and I don't really get it.

To be clear, I stand to inherit exactly $0 from my parents and that's if I don't end up covering some of their expenses in their later years.

However, I work very hard and have taken some calculated risks to provide for my family. I don't quite understand why I shouldn't be able to pass on my accumulated after-tax funds and assets to my children? Because not everyone has something to pass along? Is that the same as "because fairness"?

Edit - ironically, these calls for increase inheritance taxes often come from people my age and younger (say 20-35)... the same age bracket that stands to be the beneficiaries of the largest transfer of wealth in history as our boomer parents die off.

Because if things keep up this way rich people will be strung up by their balls in a few decades when wealth inequality totally ravages 95% of society.

[troutman]

Originally Posted by you&me

Based on what?

I think the argument is wealth redistribution. From that Macleans article:

Perhaps the most sobering figure produced by Environics Analytics is a breakdown of total liquid assets according to economic class, showing that the most affluent 17 per cent of seniors in the country—people whose liquid savings average nearly $2 million per household—are sitting on an astounding third of the nation’s wealth. That’s more than three times the amount held by the remaining 83 per cent of seniors combined.

I share your concern that this wealth has already been taxed. Alberta currently has no estate tax.

[Jason14h]

Originally Posted by PsYcNeT

Based on this conversation I think we can all agree that Estate Taxes should be much much higher.

Haven’t you found enough ways to tax people in the Alberta Politics Thread !

[PsYcNeT]

Originally Posted by Jason14h

Haven’t you found enough ways to tax people in the Alberta Politics Thread !

Estate taxes don't tax people, they tax corpses and deter wealth hoarding, which is bad for the economy.

[Wormius]

Do people really hoard their inheritances though?

[Calgary14]

Not me, I'm spending every dime I have and leaving very little for my kids

[Shazam]

Originally Posted by rubecube

I wasn't saying I did?

Not referring to you.

[PsYcNeT]

Originally Posted by Wormius

Do people really hoard their inheritances though?

Not really, no. An estate tax only really affects the top ~20% wealthiest people. For the most part, those who carry a disproportionate amount of the nations money.

EDIT: Misread.

Wealth usually begets wealth, yeah, depending on the size of the inheritance of course. A house? Some heirlooms? Not really. Stocks, corporate holdings, and the kind of stuff that becomes "legacy" wealth? Most definitely.

[jayswin]

Wealth redistribution will likely be forced onto every western nation in the future. We can do it less painfully in the near future or really painfully later.

[Slava]

Originally Posted by PsYcNeT

Not really, no. An estate tax only really affects the top ~20% wealthiest people. For the most part, those who carry a disproportionate amount of the nations money.

EDIT: Misread.

Wealth usually begets wealth, yeah, depending on the size of the inheritance of course. A house? Some heirlooms? Not really. Stocks, corporate holdings, and the kind of stuff that becomes "legacy" wealth? Most definitely.

I have no idea what your second paragraph is trying to say. But those things are taxed when people die as it is. We don't need more taxes on top of things that are already taxed and taxed through people's lives as it is.

[PsYcNeT]

Originally Posted by Slava

I have no idea what your second paragraph is trying to say. But those things are taxed when people die as it is. We don't need more taxes on top of things that are already taxed and taxed through people's lives as it is.

You act like dead people are going to care about their transference being taxed.

[White Out 403]

Originally Posted by jayswin

Wealth redistribution will likely be forced onto every western nation in the future. We can do it less painfully in the near future or really painfully later.

Do you mean a public Bloodbath?

[Slava]

Originally Posted by PsYcNeT

You act like dead people are going to care about their transference being taxed.

Talk to some people who have saved and built those assets through a lifetime. They don't want it going to government!

I know I don't want mine going to the government when I get there.