Friday, August 4, 2017

Short Takes: Mortgage Delinquencies, Stupid Investments, and more

Here are my posts for the past two weeks:

The Behavior Gap

You Can’t Have Your Sears Cake and Eat it Too

Here are some short takes and some weekend reading:

Estate administrator Scott Terrio explains why today’s low mortgage delinquency rate means almost nothing in predicting future mortgage delinquencies.

Freakonomics Radio has a very interesting investment podcast called “The Stupidest Thing You can Do With Your Money.”

The Blunt Bean Counter explains the Liberal government’s new tax proposals for private corporations. He says “the impact of these proposals is potentially massive,” and “I don't think most small business owners have any idea what is about to hit them.”

Financial Services Commission of Ontario explains how to protect yourself when renting a car. Many of us have had that moment of doubt about whether to pay for the rental company’s insurance coverage that often increases the rental cost by 50% or more. This article explains how to get coverage with your credit card or your current auto insurance policy.

Canadian Couch Potato uses his latest podcast to examine MoneySense’s role in advancing index investing in Canada and to disagree with Warren Buffett and John Bogle on international investing.

Boomer and Echo explain why you shouldn’t get mortgage life insurance. Don’t miss a comment by Travis spelling out post-claim underwriting and how it can cost you.


  1. The rental auto coverage is a real problem as we dont own a car as we live in the downtown area and can walk or cycle to everything. So we pay the big fee for a credit card that includes collision damage on rental cars. But that fee is still waaaaaaay cheaper than the rate at the rental companies. In Ontario, the liability coverage included in the contract is high enough that we consider it protection, but in states like florida, it is very low, i think 200,000 only, so any accident and every accident chasing attorny will be looking to sue us for our house, retirement funds, etc so we buy liability insurance too, which usually DOUBLES the effective cost of the rental. Alas, my house insurer (Allstate) wont provide any sort of driving insurance unless there is a physical car we own. It gets even more complex is you want to rent for more than 30 days (in florida, one has to return the car to the orginating rental point, return car, and re-rent a new one). My wife was once doored by a motorist in Ottawa, with near-fatal injuries, and it was HELL to navigate the police and insurer system when we didn't have auto insurance since the cops wouldn't give us info, and when we did find the other party, they tried to ignore us and shunt us aside for months before settling. Insurance remains a product I dont much trust, it seems stacked against claims.

    1. @Eric: I like to say that insurance companies are in the business of paying small claims cheerfully and denying large ones. The complex situation you describe is familiar to me. Trying to make sure you have adequate coverage is tricky. My wife sees patients who are "covered" by motor vehicle insurance in Ontario. The coverage amounts are low, and people's coverage often gets terminated long before they are well. The system saves money by making it hard for victims to get the treatment they need.