tag:blogger.com,1999:blog-5465015914589377788.post7710465518268501399..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Short Takes: Autistic Adults, Criticizing Banks, and moreMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5465015914589377788.post-51639369104400093082016-07-01T08:12:06.956-04:002016-07-01T08:12:06.956-04:00There are so many variables. The Crossover Point ...There are so many variables. The Crossover Point simplifies things to a degree but it's only a guidepost - but that said - I believe once you can largely live off the money your investments make you can consider yourself financially free.<br /><br />You know all this :)<br /><br />Happy Canada Day.<br />MarkMy Own Advisorhttp://www.myownadvisor.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-28517771172150275182016-06-30T10:09:31.210-04:002016-06-30T10:09:31.210-04:00@SST: I think the banking barriers you mention wil...@SST: I think the banking barriers you mention will slow down the process, but won't stop it. In the short term, the big banks will continue to invent new fees and increase old ones. I'm not predicting a drop in their profits any time soon.<br /><br />As for including your home in your net worth, it all depends on what use you make of the final number. If you just want a true measure of everything you have in the world, then the house belongs in. If you want a number representing possible future consumption, the house should most likely be out. However, I do know one couple who recently bought a condo with the plan of ultimately selling it when they run out of other money and using the proceeds to rent a similar place. In this case, it makes sense to add the value of the condo to their net worth (as well as planning for higher expenses after the sale).Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-70499448305482054112016-06-30T09:59:29.789-04:002016-06-30T09:59:29.789-04:00Bank fees/start-ups: while I like your optimism o...Bank fees/start-ups: while I like your optimism on the situation, I'm far more pessimistic. I think the barriers to entry in the Canadian banking sector are far too thick to allow any kind of "never-ending stream of banking start-ups". That, coupled with the usual lazy behaviour of the general public won't threaten the Big Five any time soon, not in Canada, anyway.<br /><br />There was a story a few days ago about bank runs in the Caribbean when RBC upped their fees from $0 to $12/month. Average minimum wage in the Caribbean is ~$4.25. I'm sure many Canadians are paying $25/month or more in basic account fees...yet do nothing. Fees can make up ~10% of bank revenue, they won't let that go easily. <br /><br />Weddings: very long story short, wife and I got married for $75 and change. A man-on-the-street (a woman and her daughter, actually) took our wedding photos. It's also ridiculous to think that your wedding day is the best/happiest day of your life. Bottom line: people are crazy. :)<br /><br />B&E net worth: I will never include my primary residence in NW calc for one simple reason: I cannot access the equity.<br /><br />If I want to access the equity (or 'asset' as in B&E's definition), two things can happen: 1) I must pay to access my own equity via a HELOC (paying to use my own money doesn't sound like an asset to me), or 2) I can sell the asset but this results in one of two outcomes: a) I lose the utility (and peripheral benefits) of that asset forever; it's not like buying and selling a bar of gold or a share of IBM, and/or b) I am forced to utilize some/most/all/even more of the cash to buy a different asset/house; we all have to live somewhere. A house is a non-financial asset therefore its value is not financial; best to think of your house in the same way you view your vehicle.<br /><br />Realizing that any money put into buying a house (or renting) is a sunk cost will help you realize that a primary residence does not belong on a NW sheet (not as a straight up 'asset', at least). <br />SSTnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-43083655993060542182016-06-30T06:45:57.209-04:002016-06-30T06:45:57.209-04:00MJ, thanks for the inclusion. When you think about...MJ, thanks for the inclusion. When you think about what a Power of Attorney is, it makes sense that someone with diminished mental capacity might not be able to legally sign a P.O.A., however, it now means more legal wrangling, and I suppose, more things to write about.<br /><br />Enjoy Canada Day!Big Cajun Man (Alan W.)http://www.canajunfinances.com/noreply@blogger.com