Is the Globe and Mail trolling you?

Many Franks pointed out what has to be the most bizarre ‘financial facelift’ feature yet over at the Globe and Mail.

You think you have money troubles? Look at these poor people!

[Eric] earns $200,000 a year working one day a week in a medical clinic. But his real love is teaching, which he does one day a week at a university; this earns him $100,000 a year.

WHAT?!

“It is financially possible for them to do the things that are important to them, although by doing so, they will run a cash flow deficit of $50,000 a year until the children leave home,” Mr. MacKenzie says. Over time, their annual deficits will add up to more than $1-million in additional debt.

WHAT?!

They are living rent free in a relative’s house (they pay taxes, utilities and upkeep) and “regret not having bought a house years ago,” Eric writes in an e-mail.

WHAT?!

Eric and Ilsa are fortunate because their parents are willing to put a home equity line of credit on their own home to extend them the $1-million they need to build, and to finance their annual deficit, the planner notes.

WHAT?!

 

Sort by:   newest | oldest | most voted
realist
Member
realist

They need to sort out their own problems, not ask others to do it for them.

Loon
Guest
Loon

I believe that there are people as wealthy and as stupid as these two, 5 kids are you crazy ?!??!

But seriously, the more you make the more you spend, unfortunate but true in most cases.

chinoria
Guest
chinoria

What medical clinic ?
What teaching?
MY BS siren just went off

chinoria
Guest
chinoria

Condo-day-ftw noted the mistake

condo_day_ftw Says:
January 19th, 2015 at 8:43 pm 139
That Financial Facelift has had a number of updates and corrections made to it since it was originally published on Saturday. The latest version states that he works ~80 hours a week, not the 2 days a week mentioned in the original.

Like or Dislike: Thumb up 0 Thumb down 0

Also :

I know it is early days, but where do you guys get foreclosure and court ordered sale listings info?
Thanks

chilled
Member
chilled

This is exactly what Ted Eastside has been rambling about; the sheer idiocy of Vancouver and Vancouverites.

$450K Doctor
Guest
$450K Doctor
Funny the guy says he doesn’t need to save for retirement because he doesn’t mind working and will work until he is 80. Yet he apparently only works 2 days per week. That sounds like he doesn’t enjoy working. I think I would rather work 5 days per week now and then have the option of retiring when I am 60 or so rather than semi retire now but have to work until I am dead and go into massive debt. A doctor or not working when you are in your 70s is not always an option especially considering there may be health issues to deal with. This is just a case of a couple who based on their education and status in society feel they are entitled to have everything now. There is no time to wait, save a… Read more »
Lurker
Guest
Lurker
I watched this story blow up over social media because of the ‘working 1 day a week’ thing. It offended sensibilities but really I wish people were smarter. Who actually knows a doctor? They are hard working ambitious people. Getting in to med school is extremely competative and even then it’s a heavy work load. Residency is incredibly hard. I do not know a single physcian (under 50) that works less than 50 hours a week. Let alone 8. This entire story smelled like BS. Sure enough the truth came out. He’s not some half-assed 6 figure earner. They’re just another family that has over extended themselves and is living a little too large. They have many options, number one: don’t build a million dollar home on your plot. “Settle” for a 600K one and extend it in a decade.… Read more »
UBC in Crisis Mode
Guest
UBC in Crisis Mode

What do New York’s most famous hotel, the Lloyd’s of London building and the headquarters of the U.K.’s top law firm have in common? They’re all owned by Chinese insurers.

http://www.bloomberg.com/news/2015-01-19/chinese-hunt-for-trophy-properties-pushing-up-nyc-london-prices.html

@Lurker
Guest
@Lurker
“I do not know a single physcian (under 50) that works less than 50 hours a week. Let alone 8.” OK well that settles it then. There can be no doctor who works less than 50 hour per week based on the ones you know. “They’re just another family that has over extended themselves and is living a little too large.” Yes… except this family makes $450K per year now with one spouse reportedly working part time and the other who is a dentist not working at all. They could probably be making $750K per year if both the husband and wife worked full time. Plus they have been living in a free house for years. Yet they need to go the a news paper for financial help because they can’t figure out what to do because they can’t qualify… Read more »
Prof
Guest
Prof

There is no teaching job in Canada that earns you $100,000 per year for 1 days work. = $500,000/yr

There is no medical field in Canada that earns you $200,000 per year for 1 days work. = $1 Million/yr

This is to test the masses on how gullible they are.

Prof
Guest
Prof

And for those that are defending these pay rates…well time to cut them by 75%.

This is taxpayers or Benefit plans money!

Lurker
Guest
Lurker

@9

Uh, they updated the story. The husband works full-time plus. It was a mistake.

what next?
Guest
what next?
Swiss national bank cuts deposit rate to negative territory to deter safe-haven seekers from Euro and the Russia rouble. If US Fed Reserve raise interest rates later this year, there will be a flight of capital from China to US$/C$. Given their banking conditions, they’d rather pay fees to deposit their money, or park in vacant houses. “China, with the world’s highest savings rate with deposits outstanding at 116 trillion yuan (US$18.7 trillion) as of the end of 2014, recently reported several cases of missing deposits, with 500 million yuan (US$81 million) gone missing from the Agricultural Bank of China and Industrial and Commercial Bank of China (ICBC) in the past three months, Xinhuanet reports. ” Fugitive ex-banker who voluntarily left Vancouver end 2012 to face trial was sentenced 2 years later to a 15-year jail sentence. Of the US$130… Read more »
patriotz
Member

@8:

I read the same story 20-odd years ago except the buyers were from Japan, not China.

How did that one end?

Royce McCutcheon
Member
Royce McCutcheon
Seems like the primary reason the story blew up was the (inaccurately) reported days or hours/week working. The under-analyzed story is the impact of real estate/ cost of shelter in Vancouver on a couple that earns this much AND is very fortunate in terms of financial support from outsiders. I’m not going to defend poor choices made by this couple (sooooo much tied up in real estate – ugh). And, coming from more modest roots, I will never argue that people in the so-called 1% have it rough. Still, it is a fact that young families of all economic levels are relatively squeezed here. Call it entitlement if you want, but it is undeniable that people earning like this – and with rich family support! – could easily afford to live very high on the hog in nearly any other… Read more »
chinoria
Guest
chinoria

@13 from you article:

As many as 4,000 Chinese fraudsters have fled overseas in recent years, taking with them as much as $50-billion in ill-gotten funds, according to estimates by Chinese media. “Most of them are still living the high life in foreign countries,” wrote the Shanghai Daily on Tuesday.

That’s a lot of people , that’s a lot of money. The money they take is from the poor and middle classes.

Many Franks
Member
Active Member

Surrey City real estate still hot

The subheading says it all: “Possible interest rate hike and Bank of Canada’s warning that Canadian housing market could be overvalued unlikely to hurt strong local market, realtors say.”

Chirpy optimism inside the quotation marks, in a sea of ugly stastics surrounding them.

Marco
Guest
Marco

@7Lurker,

There’s no doubting this couple has entitlement issues when you break down their expenditures. Even if this isn’t a fictitious Globe and Mail tale it inadvertently reeks of a cleverly crafted advertorial. The premise: How can a family making under 450,000 annually afford to buy in Vancouver? Easy ask the folks to supply them with a HELOC. Also don’t forget to fork over 800/month for life insurance. Who benefits from this story? The Banks and Real estate industry, not the average Canadian.
Cheers.

Mortgageslave
Guest
Mortgageslave

5 children in private school! Little johnny is too good for public school, lmoa. I’d rather put the $5k aside every year and max out their RESP, then when little johnny turns 18 he have over $200k to start his life. Even a doctor couldn’t figure that one out! Elitism at it’s finest…

southseacompany
Member
southseacompany

“Who are the richest 1% of the world’s population?” BBC

http://www.bbc.com/news/business-30887264

To be in the richest 1% in the world you need a net worth of $800k.

Lot’s of boomers sitting on + $800k paid-off homes in Van. They are in the 1%. Seems like a meaningless metric for ‘wealth’, as asset inflation can make anyone rich on paper.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

>Lot’s of boomers sitting on + $800k paid-off homes in Van. They are in the 1%. Seems like a meaningless metric for ‘wealth’, as asset inflation can make anyone rich on paper.

because a crash is coming and is going to blow away all those “paper” gains?

Mortgageslave
Guest
Mortgageslave

Good to see you’ve stopped your biased opinion and in agreement. At least you’re not a completed idiot.

bobwestsiderealtor
Guest
bobwestsiderealtor

“A wealthy man is one who earns $100 a year more than his wife’s sister’s husband.”

– H. L. Mencken

Simon
Guest
Simon

Can anyone explain to me how “parking” your wealth in a house priced in a currency that has weakened 20 percent against the USD in the last two years is a good idea?

space889
Guest
space889
RESP is intendedfor post secondary education. I don’t think you can just take the $$$ out and buy a condo with it. Either way, from what I heard, private school does do a much better job of teaching and pushing the students to excel, rather than simply babysit them and let them do whatever they want. The parents we know who send their kids to private school usually have to read 5 books per week with book reports even in grade 1. One mother said that her kid’s reading level is already equivalent to grade 4 when he was only in grade 1 in private school. Costco has those elementary/secondary cirriculum books on sale right now for math, English, and science. I flipped through grade 8 and grade 3 book and it is a joke. The grade 8 reading material… Read more »
wpDiscuz