I was in a bit of a difficult conversation yesterday. We had some friends in the area and they had heard an interview with someone who was saying that the US economy was doomed. I get about 2 of these though e-mails a day. I am sure you have seen these as well, but I usually can just avoid the whole conversation (an e-mail doesn’t automatically require a reply). But this question was coming from friends, and I had to admit some of the most difficult realities for a financial planners. Money: national currency is a representative economy. It is backed by the faith of the government that prints the currency, and as time has gone by, the governments have not proved as strong as people suspect.
I have never been a precious metal trader. I have only owned precious metals as a bit jewellery, but today we are talking more then ever before about gold (and silver). This is outside my field.
The US dollar was tied to hard metals up until 1974. This meant that the US government actually had metal (either gold or silver) to cover the value of the money they were printing. This would be a classic representative economy. The printed dollar represented the metal behind it. In 1974, this standard was removed. Today’s US (and other national currencies) dollar is back only be the faith of the government. This allows the government to print as much money as is necessary.
However, for 35 years, this has been the case. Why is there so much talk about precious metals today? First, the value of both of these metal have grow substantially. The second reason, is that metals are not subject to inflation and/or exchange rate problems. It become a true international currency. This second reason is really “The” reason for most watchers. The US has significantly increased it’s national debt in the bail out of so many companies. The value of the US dollar doesn’t have the same strength as before as people are starting to not hold it as the “great international currency”. In my present home of Canada, we have certainly see the Canadian dollar function very well in light of this US weakness.
Of course, the final nuts and bolts question, is “what should one do?” Should we all run out and buy gold or silver? Gold is about 1200/oz. Silver is 18.25/oz. If someone wants to buy gold, the Canadian bank “Bank of Nova Scotia” has made this very easy. You can order it on line from 8am to 5pm EST on any weekday. Most of your other banks also offer it but they generally do a manual system. (meaning- you walk into the branch and they fill out some forms and you drop by in a few days to pick up the metal). 1oz silver bars at BNS are running about $23.51 silver coins (minted by the Canadian gov’t) are running a bit more. Some have preferred a gold and silver note, although this is a lot easier if you want to trade gold and silver, in the event of an economic meltdown the note is likely to be to cumbersome to work with. Another problem with the metals is how do you trade with them? If you showed up at a grocery store with a sack of gold, who would accept it? What rate would you get? Would would even be able to tell you it’s real?
Back as a financial planner, a man came into our branch with a silver brick and set it on the desk of my receptionist. We all stared at it. He asked “so, how much is it worth?” We all stared. We had no idea. Was it really silver? It looked heavy. It was grey and shiny. He told us he paid $1000 for the brick back a decade ago when he thought the world economy would collapse. It didn’t collapse, so he decided to bring it back. We sent the brick away to Toronto to our precious metals depository and they assessed the value as $1000.53 (or something like that). Not his best economic decision.
Let’s pretend you had the gold bars…where would you put it to keep it safe until you needed it? That’s difficult. For the present, a safe deposit box would make sense, but again, if we were in an economic meltdown and the banks closed, you would find it difficult to get back into a branch to get the gold. Do you keep it in your house? You could, but gold could be subject to loss of theft. I have had 2 total loss house-fires. We never did find any “jewellery” in the ash heap.
I guess when you come down to it, although we all want to do the best to plan for the future, planning for a complete economic meltdown would be very difficult. One financial planner and I were talking about this idea a few months back and he mentioned that when Hurricane Katrina hit, we actually found an economy where the dollar didn’t matter much at all. Batteries were the best thing to have or fresh drinking water. There was no one (as far as I know) trying to trade silver or gold. My friend, said for him “chickens” would be the best item to have around, and I tend to agree.
So, will there come a time when we can not rely on the government?…I think so. The Bible predicts a time when there would be one government and this government would be hostile to believers. In fact, it says no one could buy or trade without a mark of the “Beast”. I am confident that will someday become a reality, but for most of us, until we start to see those “end of the age signs” we might do well to not bring a bag of gold or silver to Walmart. Have a good day, Brad
Monday, November 30, 2009
Friday, November 27, 2009
Smith Maneuver
When I worked as a Financial Planner, this was one consideration when trying to expand someone's wealth. This is not for everyone, but I think anyone can benefit from understanding the concept. I always thought this was certainly creative.
Fraser View House Debt as Positive
By Ellen Roseman Personal Finance Colulmnist
Published On Wed Jan 24 2007
Fraser Smith has written a bestselling book on personal finance by telling Canadians not to pay off their mortgages.
He wants people to convert bad debt (a mortgage) to good debt (an investment loan) by swapping one for the other.
By using something called a "readvanceable mortgage," you can get a tax deduction for the interest paid on a mortgage (which is generally not tax-deductible).
The strategy to convert a negative to a positive is called the Smith Manoeuvre.
Here's how it works: (1) Make your regular mortgage payments. (2) Borrow back the principal reduction that occurs as you make each payment. (3) Create an investment loan that is tax-deductible.
After the first year, you will get a big tax refund. Use this money to make an extra payment against your mortgage, then immediately borrow back and invest the same amount.
What's interesting about the Smith Manoeuvre is that you never reduce your debt. Borrow $250,000 to buy a house and pay off that loan over 25 years. Guess what? You still owe $250,000 at the end.
But now you have investments that are worth more than $250,000 – or so you hope. You can sell these investments to discharge the loan.
What about the time-honoured strategy of contributing to a registered retirement savings plan? Doesn't that offer a hefty tax saving?
In many cases, Smith says, you would do better to cash the RRSP, pay the tax and use the money to make a lump-sum reduction of the first mortgage. Then, you immediately borrow back that money and invest it outside the RRSP.
Only after converting all non-deductible mortgage debt to tax-deductible investment debt should you resume your RRSP contributions.
As you might expect, you won't hear much about RRSP alternatives from your friendly banker or investment dealer.
They're too busy asking you which mutual fund you want to buy before March 1, the deadline to invest in an RRSP and save taxes on your 2006 return.
Despite a lack of support from mainstream financial institutions, the Smith Manoeuvre has taken off through word-of-mouth and vigorous debate at online discussion forums.
"I've passed 30,000 books sold and I'm printing 10,000 more this week," he told me about his The Smith Manoeuvre: Is Your Mortgage Tax-Deductible?
These are amazing sales figures for a self-published book, not terribly user-friendly, that first came out in 2002. I picked up a copy of the seventh printing recently at a Costco warehouse store for $12.99 (half the cover price).
So, who is Fraser Smith? As a financial adviser in Vancouver, he came up with the idea in 1984 and pitched it to Canada's largest credit union.
The Vancity credit union attracted many new customers by working with them to make their mortgages tax-deductible and helped secure a dominant position in the B.C. market.
Smith, now retired and living in Victoria, has been working with partners to start a new company, Smith Manoeuvre Financial Corp. They opened an office last month on Bay St. in downtown Toronto and set up a website, www.smfc.com.
He has names and numbers of about 450 financial planners and mortgage brokers who can help put the plan into action.
"It's a great strategy, but it's not for everyone. You have to consider your risk tolerance," says Elisseos Iriotakis, a certified financial planner and vice-president of mortgages for Safebridge Financial Group in Toronto.
He finds clients are split. Half welcome the idea of swapping bad debt for good debt, while the other half worry about borrowing to invest and possibly losing money.
"It's not good for the average person. Most of my clients wouldn't understand it because it's very complex," says Gary Newby, a certified financial planner in Toronto.
Newby took a course on the Smith Manoeuvre, which explains why his name is on the list of advisers who endorse the strategy. But he says his request to remove his name was not honoured.
David Trahair, a Toronto chartered accountant, wrote a book urging Canadians not to invest in RRSPs before paying off mortgages and other non-deductible debt. He disapproves of swapping one loan for another.
"I recommend the total opposite, paying off your principal residence and not borrowing against it," he says.
"It's a high-risk strategy because you're betting the farm that some investment adviser can do better than you can. You have a guaranteed return from getting rid of the mortgage."
Love it or hate it, the Smith Manoeuvre is a runaway success. It appeals to those who want the best of both worlds, paying off a mortgage while building an investment portfolio at the same time.
Ellen Roseman's column appears Wednesday, Saturday and Sunday. You can reach her by writing Business c/o Toronto Star, 1 Yonge St., Toronto M5E 1E6; by phone at 416-945-8687; by fax at 416-865-3630; or at eroseman@thestar.ca by email.
Fraser View House Debt as Positive
By Ellen Roseman Personal Finance Colulmnist
Published On Wed Jan 24 2007
Fraser Smith has written a bestselling book on personal finance by telling Canadians not to pay off their mortgages.
He wants people to convert bad debt (a mortgage) to good debt (an investment loan) by swapping one for the other.
By using something called a "readvanceable mortgage," you can get a tax deduction for the interest paid on a mortgage (which is generally not tax-deductible).
The strategy to convert a negative to a positive is called the Smith Manoeuvre.
Here's how it works: (1) Make your regular mortgage payments. (2) Borrow back the principal reduction that occurs as you make each payment. (3) Create an investment loan that is tax-deductible.
After the first year, you will get a big tax refund. Use this money to make an extra payment against your mortgage, then immediately borrow back and invest the same amount.
What's interesting about the Smith Manoeuvre is that you never reduce your debt. Borrow $250,000 to buy a house and pay off that loan over 25 years. Guess what? You still owe $250,000 at the end.
But now you have investments that are worth more than $250,000 – or so you hope. You can sell these investments to discharge the loan.
What about the time-honoured strategy of contributing to a registered retirement savings plan? Doesn't that offer a hefty tax saving?
In many cases, Smith says, you would do better to cash the RRSP, pay the tax and use the money to make a lump-sum reduction of the first mortgage. Then, you immediately borrow back that money and invest it outside the RRSP.
Only after converting all non-deductible mortgage debt to tax-deductible investment debt should you resume your RRSP contributions.
As you might expect, you won't hear much about RRSP alternatives from your friendly banker or investment dealer.
They're too busy asking you which mutual fund you want to buy before March 1, the deadline to invest in an RRSP and save taxes on your 2006 return.
Despite a lack of support from mainstream financial institutions, the Smith Manoeuvre has taken off through word-of-mouth and vigorous debate at online discussion forums.
"I've passed 30,000 books sold and I'm printing 10,000 more this week," he told me about his The Smith Manoeuvre: Is Your Mortgage Tax-Deductible?
These are amazing sales figures for a self-published book, not terribly user-friendly, that first came out in 2002. I picked up a copy of the seventh printing recently at a Costco warehouse store for $12.99 (half the cover price).
So, who is Fraser Smith? As a financial adviser in Vancouver, he came up with the idea in 1984 and pitched it to Canada's largest credit union.
The Vancity credit union attracted many new customers by working with them to make their mortgages tax-deductible and helped secure a dominant position in the B.C. market.
Smith, now retired and living in Victoria, has been working with partners to start a new company, Smith Manoeuvre Financial Corp. They opened an office last month on Bay St. in downtown Toronto and set up a website, www.smfc.com.
He has names and numbers of about 450 financial planners and mortgage brokers who can help put the plan into action.
"It's a great strategy, but it's not for everyone. You have to consider your risk tolerance," says Elisseos Iriotakis, a certified financial planner and vice-president of mortgages for Safebridge Financial Group in Toronto.
He finds clients are split. Half welcome the idea of swapping bad debt for good debt, while the other half worry about borrowing to invest and possibly losing money.
"It's not good for the average person. Most of my clients wouldn't understand it because it's very complex," says Gary Newby, a certified financial planner in Toronto.
Newby took a course on the Smith Manoeuvre, which explains why his name is on the list of advisers who endorse the strategy. But he says his request to remove his name was not honoured.
David Trahair, a Toronto chartered accountant, wrote a book urging Canadians not to invest in RRSPs before paying off mortgages and other non-deductible debt. He disapproves of swapping one loan for another.
"I recommend the total opposite, paying off your principal residence and not borrowing against it," he says.
"It's a high-risk strategy because you're betting the farm that some investment adviser can do better than you can. You have a guaranteed return from getting rid of the mortgage."
Love it or hate it, the Smith Manoeuvre is a runaway success. It appeals to those who want the best of both worlds, paying off a mortgage while building an investment portfolio at the same time.
Ellen Roseman's column appears Wednesday, Saturday and Sunday. You can reach her by writing Business c/o Toronto Star, 1 Yonge St., Toronto M5E 1E6; by phone at 416-945-8687; by fax at 416-865-3630; or at eroseman@thestar.ca by email.
Wednesday, November 18, 2009
Encouragement from a friend
One of the best pieces of advice that I have taken was from a friend. He (is/was) a very successful investment dealer with his own company in Saskatoon, Saskatchewan. He urged me at one point in time to enter the industry from my days selling life insurance, and mutual funds. I became a stock broker, and my world continued to change from those days onward.
Any rate, Ron (not his real name) and I were walking with another stock broker and Ron turned to me and said "you know, Brad, you have one important item which will likely make you more successful then me". Now, that was a real turn of events. He had a swank office on the River in Saskatoon, and I was working out of my basement in Aberdeen, Saskatchewan at the end of two unmarked dirt roads. What would I have over Ron?
"You have only had one wife."
Simple.
Ron said, "I threw away my first million to my first wife. I have child support payments and spousal support payments, plus I am married with my new wife and daughter. In spite of everything I do, to cut costs in my world, I still can't cut costs there. In fact, if I make more, I am likely to have my payments adjusted for my ex."
One wife...can save you a million.
I pondered this, and in fact, this is not really true. A million is a bit low. By being married one time to the right person will save you no end of trouble. There is this economic benefit, but there is also great strain for a man and woman relationally if they do not "marry well". A good wife will help you as you make important decisions. They can encourage you when you need it. They can urge you to do better when you need it. Marriage is rarely perfect and marriages are often a mystery within every home. Some marriages are a "business relationship". Some marriages are very intensely emotionally connected. People will have their own dynamics, but certainly there is something said to "marrying well". I would love to write more about this, but it is a bit outside the scope of this blog, but think about it. It could save you a million. -Brad
Just as a side note: the other stock broker we were with, did not heed this counsel. He burried himself in his business success and now runs a very successful office (or so, he told me) unfortunately he also lost his loving wife and children. They were sacrificed for the 'cause'. A sad conclusion for a intensely spiritual Christian husband. It still makes me sad.
Any rate, Ron (not his real name) and I were walking with another stock broker and Ron turned to me and said "you know, Brad, you have one important item which will likely make you more successful then me". Now, that was a real turn of events. He had a swank office on the River in Saskatoon, and I was working out of my basement in Aberdeen, Saskatchewan at the end of two unmarked dirt roads. What would I have over Ron?
"You have only had one wife."
Simple.
Ron said, "I threw away my first million to my first wife. I have child support payments and spousal support payments, plus I am married with my new wife and daughter. In spite of everything I do, to cut costs in my world, I still can't cut costs there. In fact, if I make more, I am likely to have my payments adjusted for my ex."
One wife...can save you a million.
I pondered this, and in fact, this is not really true. A million is a bit low. By being married one time to the right person will save you no end of trouble. There is this economic benefit, but there is also great strain for a man and woman relationally if they do not "marry well". A good wife will help you as you make important decisions. They can encourage you when you need it. They can urge you to do better when you need it. Marriage is rarely perfect and marriages are often a mystery within every home. Some marriages are a "business relationship". Some marriages are very intensely emotionally connected. People will have their own dynamics, but certainly there is something said to "marrying well". I would love to write more about this, but it is a bit outside the scope of this blog, but think about it. It could save you a million. -Brad
Just as a side note: the other stock broker we were with, did not heed this counsel. He burried himself in his business success and now runs a very successful office (or so, he told me) unfortunately he also lost his loving wife and children. They were sacrificed for the 'cause'. A sad conclusion for a intensely spiritual Christian husband. It still makes me sad.
Interest rate trap
I get many e-mails a day from different financial planners. Some are great, some are less then that. Some repeat what I think, and some do exactly what I think would be crazy. I need to have these to "keep me in check", so that I don't get convinving myself that I know it all. This one I got in my e-mail box today, and thought that this is exactly the way I see the investment industry going. I took out the advertisements for the company, but wanted to keep the body of their insight. If you want to subscripe to this newsletter they are called Invester's Daily Edge, and I like I said, they are generally pretty good. Hope you enjoy. -Brad
Andrew Gordon Reporting: Baltimore, MD. Tuesday November 17, 2009
A False Sense Of Security
I had just called my favorite uncle, Al, in NYC to thank him for inviting me up for Christmas dinner. (His wife, Rosa, has been making this special family meal for the past four decades.)
As usual, Uncle Al brought up the subject of his investments. “Don’t worry,” he said, “I’ve gone much more conservative since last time we talked. The interest I’m getting isn’t much. But my broker says if the market goes down, I’ll be protected from bad losses.”
“That’s great,” I said. I didn’t want to worry my uncle. But as I hung up, I made a note to myself to have a heart-to-heart with him when I see him over the holidays.
His so-called protection from “bad losses” sounds reassuring. But when push comes to shove, it won’t be able to do the job.
25 Years Later...
One of the most dangerous traps in the investment world is about to be sprung on investors. It wasn’t intentionally set. But it’s still going to catch millions of investors by surprise... and not just any ol’ investors...
The ones who are going to be hurt the most are the same ones who are most convinced that they are well-protected.
How do I know this?
I’ve seen it before...
In 1994, the Fed instituted the first of eight rate hikes to control inflation. I watched as all kinds of bond funds dropped 30% or more. Investors kept waiting for the storm to pass and for their bonds to recover. They never did.
The government will put off raising rates as long as possible. How can they not? They know the second they begin, borrowing (to fund the purchase of new homes and start or expand small businesses) will go down. Spending will go down. And the markets, too, will drop.
And whatever progress the economy had been making up to that point will stop.
It’s already November. The government won’t raise rates this year. It’ll probably happen in 2010, though.
And even if the government puts it off a little longer, the fear of rates going higher will fester.
Perception is reality. Beginning next year, that fear will dominate the market until, well, the government actually does the dirty deed.
In other words, next year is the perfect set up for a repeat performance of 1994 and what followed.
A Horrible Investment Trap
As I said, the trap has already been set. The culprit? Today’s low interest rates. IDE’s Steve McDonald explains:
"The Wall Street Journal recently reported that 78% of money market rates are below 0.3%. Problem is, no one can live on that.
"So hundreds of billions of dollars are pouring out of money markets into higher-risk investments like junk bonds and certain bond funds – in search of returns that people can actually live on.
"As interest rates move up the trap is sprung. These higher-yielding bonds drop in value and shaken investors begin dumping their junk bonds and bond funds to try and limit their losses.
“But it’s too late...
"All it does is drive down these bond funds more quickly."
The Hidden Risks of Investment-Grade Bond Funds
Aptly named “junk” bonds are high risk.
But Steve says that investment-grade bond funds also carry risks... risks that the average investor is completely unaware of. The two big problems...
Investment-grade bond funds use leverage. They borrow money against the bonds they hold to buy more bonds. It’s like taking out a second mortgage on your home to buy another house. The extra bonds paid for with borrowed money add to the interest you get.
But when interest rates go up, the interest payment on the loan the fund took to pay you the higher interest rate also goes up. At the same time, the value of the bonds the fund holds drop. It’s a double whammy.
Bond funds generally buy bonds with very long maturities – because the longer the maturity date, the higher the interest paid. But the longer the maturity, the more the value of the bond drops when interest rates go up. So bond funds get killed when rates go higher.
What can we learn from this?
First lesson is that bond funds require just as much scrutiny as stocks and stock funds...
Second lesson is that bonds hate rising rates.
Andrew Gordon
Investor's Daily Edge
FINANCIAL ADVISORY BOARD
Bob Irish - Investment Director
Andy Gordon - Editor
Jon Herring - Editorial Contributor
Ted Peroulakis - Editorial Contributor Christian Hill - Managing Editor
Dr. Russell McDougal - Editorial Contributor
Steve McDonald - Editorial Contributor
Michael Masterson - Consulting Editor
Andrew Gordon Reporting: Baltimore, MD. Tuesday November 17, 2009
A False Sense Of Security
I had just called my favorite uncle, Al, in NYC to thank him for inviting me up for Christmas dinner. (His wife, Rosa, has been making this special family meal for the past four decades.)
As usual, Uncle Al brought up the subject of his investments. “Don’t worry,” he said, “I’ve gone much more conservative since last time we talked. The interest I’m getting isn’t much. But my broker says if the market goes down, I’ll be protected from bad losses.”
“That’s great,” I said. I didn’t want to worry my uncle. But as I hung up, I made a note to myself to have a heart-to-heart with him when I see him over the holidays.
His so-called protection from “bad losses” sounds reassuring. But when push comes to shove, it won’t be able to do the job.
25 Years Later...
One of the most dangerous traps in the investment world is about to be sprung on investors. It wasn’t intentionally set. But it’s still going to catch millions of investors by surprise... and not just any ol’ investors...
The ones who are going to be hurt the most are the same ones who are most convinced that they are well-protected.
How do I know this?
I’ve seen it before...
In 1994, the Fed instituted the first of eight rate hikes to control inflation. I watched as all kinds of bond funds dropped 30% or more. Investors kept waiting for the storm to pass and for their bonds to recover. They never did.
The government will put off raising rates as long as possible. How can they not? They know the second they begin, borrowing (to fund the purchase of new homes and start or expand small businesses) will go down. Spending will go down. And the markets, too, will drop.
And whatever progress the economy had been making up to that point will stop.
It’s already November. The government won’t raise rates this year. It’ll probably happen in 2010, though.
And even if the government puts it off a little longer, the fear of rates going higher will fester.
Perception is reality. Beginning next year, that fear will dominate the market until, well, the government actually does the dirty deed.
In other words, next year is the perfect set up for a repeat performance of 1994 and what followed.
A Horrible Investment Trap
As I said, the trap has already been set. The culprit? Today’s low interest rates. IDE’s Steve McDonald explains:
"The Wall Street Journal recently reported that 78% of money market rates are below 0.3%. Problem is, no one can live on that.
"So hundreds of billions of dollars are pouring out of money markets into higher-risk investments like junk bonds and certain bond funds – in search of returns that people can actually live on.
"As interest rates move up the trap is sprung. These higher-yielding bonds drop in value and shaken investors begin dumping their junk bonds and bond funds to try and limit their losses.
“But it’s too late...
"All it does is drive down these bond funds more quickly."
The Hidden Risks of Investment-Grade Bond Funds
Aptly named “junk” bonds are high risk.
But Steve says that investment-grade bond funds also carry risks... risks that the average investor is completely unaware of. The two big problems...
Investment-grade bond funds use leverage. They borrow money against the bonds they hold to buy more bonds. It’s like taking out a second mortgage on your home to buy another house. The extra bonds paid for with borrowed money add to the interest you get.
But when interest rates go up, the interest payment on the loan the fund took to pay you the higher interest rate also goes up. At the same time, the value of the bonds the fund holds drop. It’s a double whammy.
Bond funds generally buy bonds with very long maturities – because the longer the maturity date, the higher the interest paid. But the longer the maturity, the more the value of the bond drops when interest rates go up. So bond funds get killed when rates go higher.
What can we learn from this?
First lesson is that bond funds require just as much scrutiny as stocks and stock funds...
Second lesson is that bonds hate rising rates.
Andrew Gordon
Investor's Daily Edge
FINANCIAL ADVISORY BOARD
Bob Irish - Investment Director
Andy Gordon - Editor
Jon Herring - Editorial Contributor
Ted Peroulakis - Editorial Contributor Christian Hill - Managing Editor
Dr. Russell McDougal - Editorial Contributor
Steve McDonald - Editorial Contributor
Michael Masterson - Consulting Editor
Thursday, November 12, 2009
To Buy or not to Buy
To buy or not to buy:
One of the largest and most important decisions that many people have to make it whether to buy or not buy a home, and assuming you are deciding to buy…which home to buy. Everyone has opinions on this and for whatever it is worth this is mine.
First question becomes how long will you live there? If you are planning on staying in a location for 2 years or less I would say the odds are against you doing well with that property. I do respect that there have been many who did do very well “buying a place where they went to school and then selling for a prophet 2 years later“, but this is a very risky game, and I think most people who have watched the news this last couple of years have realized that the real estate market is not the goose that lays the golden egg. There have been many who have lost their shirt trying to “flip” a property.
Second question would be what are the markets for renting and for owning. You might as well know what you are entering into. If it is a great market to rent, then there should be very little encouragement to buy. If it is an ideal market to buy, then that would lean us away from the rental market. Sounds simple, but in almost every business district there are cycles of great rentals and cycles of great buys to be had.
Third, is the timing right for purchasing (general economics). Back in the early 80s in Canada interest rates were through the roof. A 5 year mortgage was sitting at it’s peak at 21.5% annually. That`s like buying a house and putting it on a credit card. A few years later this price dropped dramatically. Today interest rates are at record lows. Part of these poor interest rates are attached to economic uncertainty. If you think your job is relatively stable, then you are in a position to look at purchasing. If you aren`t sure you may do well to sit on the sidelines until you can answer that question with some certainty.
“Location, location, location” was the mantra I was taught when I started learning about real estate. Let me give you a quick example. Here are two homes, which would you expect to pay more for?
The trailer, just so you know is in a run down slum area in the North east of Saskatoon. It is just shy of 1000sq feet. The land is a postage size yard, and that was the best photo a real estate agent could get of the property. The brick home is from a site where people just put their photos us and try to sell their own place. The house is just over 2000 sq feet, yard and garage and fairly nice.
The trailer is listed for $35,000 the house for $34,000. Why? Location. Even though the trailer is in a rough part of town it is still within the city of Saskatoon. The other is in a small town, in fact, it appears to be a dying town about ½ hour from Yorkton. It’s an amazing house, but poor location.
So, let’s make this application more personal. We are renting now in a place that by most standards would be considered inadequate. We have 9 people in a 3 bedroom house. My son sleeps in the living room and rolls up his bed in the morning. We have a baby on the way. We are paying $400 a month in rent, which is better then we did in Saskatoon with an almost identical house we paid $1300/month. So, obviously we should buy right? I wish that was truly clear.
We believe that all of our actions should be prayerfully considered. We can buy a place and pay cash in the area. That would be insanely easy. In fact, we even have seen a home that we think would work. (5 bedrooms and 2 baths). Yet, we have not placed an offer on the location. The reason simply, is that God has not given us clarity, yet. A real estate agent can’t grasp this (even if he has a Mennonite last name). Time is of the essence, and he “has another couple who have expressed an interest”, so what? I have spent time in sales, I understand he doesn’t get paid unless I buy, so he’s motivated. The seller lives in another town. His work took him away. This house is dead weight to him. The seller is motivated.
I am trying to balance the spiritual teachings 1) don’t store up for yourselves treasures on Earth (Matthew 6) against 2) Prov. 31- where the noble wife considers a piece of land and buys it. Jesus (Yeshua) did not own a home, why should his servants think that should be our privilege? Yet, I am a father, and I know a “Home” would provide my children some sense of stability, which they could use in this world. The property is still very modest (significantly below our means). We can afford a place at twice the price and still not have be go back to work. In this case, I would own this property free and clear, not bad for a retired father of (soon to be 8). I think it makes economic sense. Yet, I have not received confirmation from our Lord…so we have to wait.
One of the largest and most important decisions that many people have to make it whether to buy or not buy a home, and assuming you are deciding to buy…which home to buy. Everyone has opinions on this and for whatever it is worth this is mine.
First question becomes how long will you live there? If you are planning on staying in a location for 2 years or less I would say the odds are against you doing well with that property. I do respect that there have been many who did do very well “buying a place where they went to school and then selling for a prophet 2 years later“, but this is a very risky game, and I think most people who have watched the news this last couple of years have realized that the real estate market is not the goose that lays the golden egg. There have been many who have lost their shirt trying to “flip” a property.
Second question would be what are the markets for renting and for owning. You might as well know what you are entering into. If it is a great market to rent, then there should be very little encouragement to buy. If it is an ideal market to buy, then that would lean us away from the rental market. Sounds simple, but in almost every business district there are cycles of great rentals and cycles of great buys to be had.
Third, is the timing right for purchasing (general economics). Back in the early 80s in Canada interest rates were through the roof. A 5 year mortgage was sitting at it’s peak at 21.5% annually. That`s like buying a house and putting it on a credit card. A few years later this price dropped dramatically. Today interest rates are at record lows. Part of these poor interest rates are attached to economic uncertainty. If you think your job is relatively stable, then you are in a position to look at purchasing. If you aren`t sure you may do well to sit on the sidelines until you can answer that question with some certainty.
“Location, location, location” was the mantra I was taught when I started learning about real estate. Let me give you a quick example. Here are two homes, which would you expect to pay more for?
The trailer, just so you know is in a run down slum area in the North east of Saskatoon. It is just shy of 1000sq feet. The land is a postage size yard, and that was the best photo a real estate agent could get of the property. The brick home is from a site where people just put their photos us and try to sell their own place. The house is just over 2000 sq feet, yard and garage and fairly nice.
The trailer is listed for $35,000 the house for $34,000. Why? Location. Even though the trailer is in a rough part of town it is still within the city of Saskatoon. The other is in a small town, in fact, it appears to be a dying town about ½ hour from Yorkton. It’s an amazing house, but poor location.
So, let’s make this application more personal. We are renting now in a place that by most standards would be considered inadequate. We have 9 people in a 3 bedroom house. My son sleeps in the living room and rolls up his bed in the morning. We have a baby on the way. We are paying $400 a month in rent, which is better then we did in Saskatoon with an almost identical house we paid $1300/month. So, obviously we should buy right? I wish that was truly clear.
We believe that all of our actions should be prayerfully considered. We can buy a place and pay cash in the area. That would be insanely easy. In fact, we even have seen a home that we think would work. (5 bedrooms and 2 baths). Yet, we have not placed an offer on the location. The reason simply, is that God has not given us clarity, yet. A real estate agent can’t grasp this (even if he has a Mennonite last name). Time is of the essence, and he “has another couple who have expressed an interest”, so what? I have spent time in sales, I understand he doesn’t get paid unless I buy, so he’s motivated. The seller lives in another town. His work took him away. This house is dead weight to him. The seller is motivated.
I am trying to balance the spiritual teachings 1) don’t store up for yourselves treasures on Earth (Matthew 6) against 2) Prov. 31- where the noble wife considers a piece of land and buys it. Jesus (Yeshua) did not own a home, why should his servants think that should be our privilege? Yet, I am a father, and I know a “Home” would provide my children some sense of stability, which they could use in this world. The property is still very modest (significantly below our means). We can afford a place at twice the price and still not have be go back to work. In this case, I would own this property free and clear, not bad for a retired father of (soon to be 8). I think it makes economic sense. Yet, I have not received confirmation from our Lord…so we have to wait.
Wednesday, November 4, 2009
A bit of inspiration
I was inspired today by a bit of something I thought might be nice to share. It is at the core of this site. I wish I could say it was my own, but it's from an Australian in a magazine called "Trespass". I hope you enjoy
Simplicity
Submitted by Sandi Tighello on November 4, 2009
Over the past few weeks I’ve noticed myself shifting, craving, veering towards a life of simplicity. A life that isn’t constantly rushed, entirely sorted out and reliant on adrenalin. I crave a life that’s calm, every so often. That’s still, sometimes. That’s wonderfully uncomplicated, always. Since delving into such a life, I’ve found myself much more relaxed. And a world away from convenience.
Convenience is ruining the world; paper cups, plastic forks, foam boxes, throwaway fashion, text messages, microwaves, overnight deliveries from the middle of nowhere to the centre of somewhere, flicking a switch to beat the heat or escape the cold, super fast communication that’s actually communicating very little, food that’s cooked in two minutes, picked up and consumed within five - without even having to step foot out of a house or vehicle, kids that can’t concentrate for longer than the length of an average YouTube clip, people who constantly plan and schedule every moment of their lives, and, the worst of it, noise. Noise is the side dish to everything that was supposed to make our lives easier; washing machines, dryers, mobile phones, dishwashers, computers, electric toothbrushes, fridges, GPS units, mix masters, handheld anythings.
I think it’s time to make our lives harder. Less convenient.
Let’s get back to working hard.
Talking. Face to face. Over a drink. Or alongside a campfire.
Washing dishes. By hand.
Buying things once, to last.
Building up a sweat. Because it’s hot. And that’s just what happens.
Collecting things; like shells at the beach. Or postcards.
Navigating from the pages of a map.
Feeling a shiver. Because it’s cold. And you’re supposed to.
Making cakes. From scratch. And mixing them. With a whisk.
Driving a couple of hours away, from wherever you are, just to discover someplace new.
Let’s lose the titles; as far as I’m concerned there’s no such thing as a Mortar Logistics Engineer or a Highway Environmental Hygienist or a Media Distribution Officer. There are labourers and road sweepers and paperboys.
Let’s get back to thinking before speaking.
Picking salad from the dirt. In the garden. Not out of a plastic bag. In the supermarket.
Smiling at people when we pass them in the street.
Dressing up, when the occasion calls for it.
Addressing our problems, working through our problems, but ignoring the crap that really doesn’t matter.
Believing that people are kind, and that they do care.
Shining our shoes.
Buying things from the local store. Or green grocer. Or butcher. If you still have one.
Letting clothes drip dry.
Singing in the car.
Let’s get back to aging. Like we’re supposed to. Getting laugh lines. Because we have. Having sunspots. Because we basked in it.
Now, more than ever before in my life, I appreciate simplicity. And I always want it.
I always want to walk out of my back door and feel grass under my bare feet.
I always want fresh air coming through my windows.
Sand that lingers in my car, weeks after I’ve visited the beach.
To pick a lemon from a tree grown in my garden. And an apple. And some rosemary. And tomatoes. And basil. And grapefruit. And parsley.
I always want a spare bed at the ready, for friends who stay too long.
A cabinet filled with quirky knick-knacks from the places I’ve been. Miniature versions of things I’ve seen.
Music playing in the background.
A well greased BBQ.
I always want to feel the arm of the man I love cradling my shoulder.
To trust strangers.
A neighbour I can chat to on a hot summer’s night. Or bank on picking up my mail when I’m away.
I always want to hear kids, making noise - a good kind of noise - like they should.
To eat in a Japanese restaurant, sitting opposite a German, next to a Sri Lankan, near a Russian, and behind an American.
The simple life: a life that requires more actual work than an easy one - more work to keep relationships alive, to eat, to create, to enjoy. That’s what I want. I want to work harder so I can live simpler. I want to do more, so I can rely on less.
Straightforward.
Uncomplicated.
Undemanding.
Simple.
In every sense of the word.
Simplicity
Submitted by Sandi Tighello on November 4, 2009
Over the past few weeks I’ve noticed myself shifting, craving, veering towards a life of simplicity. A life that isn’t constantly rushed, entirely sorted out and reliant on adrenalin. I crave a life that’s calm, every so often. That’s still, sometimes. That’s wonderfully uncomplicated, always. Since delving into such a life, I’ve found myself much more relaxed. And a world away from convenience.
Convenience is ruining the world; paper cups, plastic forks, foam boxes, throwaway fashion, text messages, microwaves, overnight deliveries from the middle of nowhere to the centre of somewhere, flicking a switch to beat the heat or escape the cold, super fast communication that’s actually communicating very little, food that’s cooked in two minutes, picked up and consumed within five - without even having to step foot out of a house or vehicle, kids that can’t concentrate for longer than the length of an average YouTube clip, people who constantly plan and schedule every moment of their lives, and, the worst of it, noise. Noise is the side dish to everything that was supposed to make our lives easier; washing machines, dryers, mobile phones, dishwashers, computers, electric toothbrushes, fridges, GPS units, mix masters, handheld anythings.
I think it’s time to make our lives harder. Less convenient.
Let’s get back to working hard.
Talking. Face to face. Over a drink. Or alongside a campfire.
Washing dishes. By hand.
Buying things once, to last.
Building up a sweat. Because it’s hot. And that’s just what happens.
Collecting things; like shells at the beach. Or postcards.
Navigating from the pages of a map.
Feeling a shiver. Because it’s cold. And you’re supposed to.
Making cakes. From scratch. And mixing them. With a whisk.
Driving a couple of hours away, from wherever you are, just to discover someplace new.
Let’s lose the titles; as far as I’m concerned there’s no such thing as a Mortar Logistics Engineer or a Highway Environmental Hygienist or a Media Distribution Officer. There are labourers and road sweepers and paperboys.
Let’s get back to thinking before speaking.
Picking salad from the dirt. In the garden. Not out of a plastic bag. In the supermarket.
Smiling at people when we pass them in the street.
Dressing up, when the occasion calls for it.
Addressing our problems, working through our problems, but ignoring the crap that really doesn’t matter.
Believing that people are kind, and that they do care.
Shining our shoes.
Buying things from the local store. Or green grocer. Or butcher. If you still have one.
Letting clothes drip dry.
Singing in the car.
Let’s get back to aging. Like we’re supposed to. Getting laugh lines. Because we have. Having sunspots. Because we basked in it.
Now, more than ever before in my life, I appreciate simplicity. And I always want it.
I always want to walk out of my back door and feel grass under my bare feet.
I always want fresh air coming through my windows.
Sand that lingers in my car, weeks after I’ve visited the beach.
To pick a lemon from a tree grown in my garden. And an apple. And some rosemary. And tomatoes. And basil. And grapefruit. And parsley.
I always want a spare bed at the ready, for friends who stay too long.
A cabinet filled with quirky knick-knacks from the places I’ve been. Miniature versions of things I’ve seen.
Music playing in the background.
A well greased BBQ.
I always want to feel the arm of the man I love cradling my shoulder.
To trust strangers.
A neighbour I can chat to on a hot summer’s night. Or bank on picking up my mail when I’m away.
I always want to hear kids, making noise - a good kind of noise - like they should.
To eat in a Japanese restaurant, sitting opposite a German, next to a Sri Lankan, near a Russian, and behind an American.
The simple life: a life that requires more actual work than an easy one - more work to keep relationships alive, to eat, to create, to enjoy. That’s what I want. I want to work harder so I can live simpler. I want to do more, so I can rely on less.
Straightforward.
Uncomplicated.
Undemanding.
Simple.
In every sense of the word.
Wednesday, October 28, 2009
BMO says what I have said for years (Variable rate mortgage)
Many people have asked me what is better a variable rate mortgage or a fixed rate mortgage. I answer the same everytime. Generally, you will save a lot more money on a variable rate mortgage. What you get in a fixed rate mortgage is security. but it's not cheap. The other day Bank of Montreal said the same.
BMO study says variable-rate mortgages better deal for borrowers most times
(CP)
TORONTO — Fixed mortgage rates may help you feel secure in your budgeting, but the Bank of Montreal (TSX:BMO) says the more volatile variable rate mortgages will save you money in the long run.
The bank put out a report Friday showing that, over the past 30 years, variable-rate mortgages have been more cost-effective about 82 per cent of the time.
That may come as a surprise to some after studies have shown many Canadians prefer a fixed-rate mortgage.
A fixed rate locks the borrower into a set interest rate for a certain period of time.
That gives many borrowers peace of mind knowing how much money to set aside each month for their mortgage payment.
Variable rates change along with interest-rate moves.
BMO said the Bank of Canada's overnight lending rate is at its lowest possible point now, which could mean there are fewer benefits to a variable rate in the foreseeable future.
BMO highlighted two historical periods when fixed rates were considered beneficial - in the late 1970s and late 1980s - and both were just before interest rates started rising again.
The bank added that the current interest environment is similar to both of these periods.
"Short-term rates are at extreme lows and pressure is likely to build for higher rates in the year ahead," said deputy chief economist Doug Porter in the report.
"The question of whether to lock in to a longer-term fixed mortgage rate or stay in a variable rate has become an increasingly complex and important issue."
Canada has been in a long-term declining rate environment since the early 1980s, the bank suggested.
As a result, the spread between five-year fixed mortgages and variable mortgages has been pushed wider in recent years, and is now near an all-time high.
Copyright © 2009 The Canadian Press. All rights reserved.
BMO study says variable-rate mortgages better deal for borrowers most times
(CP)
TORONTO — Fixed mortgage rates may help you feel secure in your budgeting, but the Bank of Montreal (TSX:BMO) says the more volatile variable rate mortgages will save you money in the long run.
The bank put out a report Friday showing that, over the past 30 years, variable-rate mortgages have been more cost-effective about 82 per cent of the time.
That may come as a surprise to some after studies have shown many Canadians prefer a fixed-rate mortgage.
A fixed rate locks the borrower into a set interest rate for a certain period of time.
That gives many borrowers peace of mind knowing how much money to set aside each month for their mortgage payment.
Variable rates change along with interest-rate moves.
BMO said the Bank of Canada's overnight lending rate is at its lowest possible point now, which could mean there are fewer benefits to a variable rate in the foreseeable future.
BMO highlighted two historical periods when fixed rates were considered beneficial - in the late 1970s and late 1980s - and both were just before interest rates started rising again.
The bank added that the current interest environment is similar to both of these periods.
"Short-term rates are at extreme lows and pressure is likely to build for higher rates in the year ahead," said deputy chief economist Doug Porter in the report.
"The question of whether to lock in to a longer-term fixed mortgage rate or stay in a variable rate has become an increasingly complex and important issue."
Canada has been in a long-term declining rate environment since the early 1980s, the bank suggested.
As a result, the spread between five-year fixed mortgages and variable mortgages has been pushed wider in recent years, and is now near an all-time high.
Copyright © 2009 The Canadian Press. All rights reserved.
Brother, do you have an extra 3/4 of a million?
Debt:
Ok, let’s get the ball rolling. I wanted to start with this one because this is the biggee. This part of our world is ½ of the entire retirement, lifestyle freedom question. I was spurred by this thought last night when my 15 year old asked me a question last night he said…”Dad, I know you have a line of credit (LOC) and I was wondering we I could tap into that and make a purchase to start my career.” To be honest, I was impressed. My son often talks about developing his career. I do respect the desire for sometimes needing some capital to get things rolling. So, I asked him how much he’d like to borrow?
“$750,000” he said without the slightest sense that there might be a problem, but sensing our reaction he quickly added, “I would pay you back an extra 1% per year over your costs.” You see, he wanted to buy a farm, and knew there were a lot of costs, so it seemed logical that his dad would fork over ¾ of a million dollars, especially (if his son, would offer such an attractive return if he was successful).
My lovely bride, Julie, started to launch into my son about his own his own foolishness. I stopped her and instead told him a couple stories.
My parents back in the 1970s moved to Idaho. My dad was working for Dutch Boy paints, had a good job and a growing family with two boys, so after much looking they decided to take the great plunge. They bought a house in a new development area in the “burbs” of Boise, Idaho. The cost I think was about $25,000. How long did they expect to pay on this? 30 years.
My own story, I was a financial planner at The Bank of Nova Scotia. I had a lovely wife and 7 children. We were renting an acreage, but we knew the owners were eyeing the place to sell. They could use the cash, so we hunted. We found another acreage about 45 minutes from Saskatoon, with a 1970s house on it and 15 acres. I had some cash saved, but had to borrow $135,000 from my own bank to buy the land. I set up the amortization over 40 years.
So, I asked my son. If I positioned us to pay out our own home over 40 years and you want me to loan you 5 times that, how long do you think it would make sense to pay that out over. The math problem was fairly simple. (40 X 5)…There was a long pause. Finally, the answer came back, “about 200 hundred years…give or take a bit.”
“Excellent,” I answered (I do know the subject is more complex then that, but I was just trying to simplify this for my son), “and what do you think the chances are that you will be working that farm for 200 years?”
(silence)
“Now Josh,” I wanted him to get the visual on this, “today it’s raining. There is not bringing in the crop from those fields that still have crops, right (he nodded). Tonight, the forecast is for snow, right (yup) so if those farmers need that crop to pay their bills, how are they going to do it?” (no answer)
“So Josh,” I wrapped it up for him, “if you can’t pay the debt you owe me one year because one out of the 200 years of paying this debt you get bad weather, then I would have to take over the farm. I don’t want to be a farmer…ever, but especially at 150 years old.”
Now I have picked on my son a bit. He knows I love him and have no ill intent, but it does show has easily we tend to get ourselves tied into debt.
When I was a financial planner, when people would want to look at their whole financial picture, especially as they reached retirement, we would have to run through their debt load. Many a person found out their retirement dreams had to be adjusted because of the debt they carried. Some, fortunately, also found when we ran the numbers that they could retired immediately if they wished. Their age was not the determining factor (generally) they quit they day job if they had the cash flow. One half of that equation is the debt.
The other day I was at a local department store, and dutifully I was asked at the till “will this be on you store’s name credit card.” I said what I often do. “It will be if you refuse to take cash. Normally, the clerk chuckles and says “oh, we still take cash.” but this one tried to reverse, “sure, we don’t take cash.” (of course, she was just joking). That store’s credit card presently is charging 28.5% interest on their card. Can you see why everyone at the till is told that they have to ask this to every customer. Amazingly enough, no one seems offended. In fact, some even do it, especially if there is a small price reduction of some “loyalty bonus program” associated with putting it on that card.
Think about what God’s word says on the matter:
Proverbs 22:7 “The rich ruleth over the poor, and the borrower is servant to the lender.”
Would you chose to make yourself a servant (slave)? That what happens when you borrow.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
Again, good counsel. If we do trust God, then we really need to pay attention to how we handle the resources He has given us.
I am sure we’ll talk more about this at a later point.
Ok, let’s get the ball rolling. I wanted to start with this one because this is the biggee. This part of our world is ½ of the entire retirement, lifestyle freedom question. I was spurred by this thought last night when my 15 year old asked me a question last night he said…”Dad, I know you have a line of credit (LOC) and I was wondering we I could tap into that and make a purchase to start my career.” To be honest, I was impressed. My son often talks about developing his career. I do respect the desire for sometimes needing some capital to get things rolling. So, I asked him how much he’d like to borrow?
“$750,000” he said without the slightest sense that there might be a problem, but sensing our reaction he quickly added, “I would pay you back an extra 1% per year over your costs.” You see, he wanted to buy a farm, and knew there were a lot of costs, so it seemed logical that his dad would fork over ¾ of a million dollars, especially (if his son, would offer such an attractive return if he was successful).
My lovely bride, Julie, started to launch into my son about his own his own foolishness. I stopped her and instead told him a couple stories.
My parents back in the 1970s moved to Idaho. My dad was working for Dutch Boy paints, had a good job and a growing family with two boys, so after much looking they decided to take the great plunge. They bought a house in a new development area in the “burbs” of Boise, Idaho. The cost I think was about $25,000. How long did they expect to pay on this? 30 years.
My own story, I was a financial planner at The Bank of Nova Scotia. I had a lovely wife and 7 children. We were renting an acreage, but we knew the owners were eyeing the place to sell. They could use the cash, so we hunted. We found another acreage about 45 minutes from Saskatoon, with a 1970s house on it and 15 acres. I had some cash saved, but had to borrow $135,000 from my own bank to buy the land. I set up the amortization over 40 years.
So, I asked my son. If I positioned us to pay out our own home over 40 years and you want me to loan you 5 times that, how long do you think it would make sense to pay that out over. The math problem was fairly simple. (40 X 5)…There was a long pause. Finally, the answer came back, “about 200 hundred years…give or take a bit.”
“Excellent,” I answered (I do know the subject is more complex then that, but I was just trying to simplify this for my son), “and what do you think the chances are that you will be working that farm for 200 years?”
(silence)
“Now Josh,” I wanted him to get the visual on this, “today it’s raining. There is not bringing in the crop from those fields that still have crops, right (he nodded). Tonight, the forecast is for snow, right (yup) so if those farmers need that crop to pay their bills, how are they going to do it?” (no answer)
“So Josh,” I wrapped it up for him, “if you can’t pay the debt you owe me one year because one out of the 200 years of paying this debt you get bad weather, then I would have to take over the farm. I don’t want to be a farmer…ever, but especially at 150 years old.”
Now I have picked on my son a bit. He knows I love him and have no ill intent, but it does show has easily we tend to get ourselves tied into debt.
When I was a financial planner, when people would want to look at their whole financial picture, especially as they reached retirement, we would have to run through their debt load. Many a person found out their retirement dreams had to be adjusted because of the debt they carried. Some, fortunately, also found when we ran the numbers that they could retired immediately if they wished. Their age was not the determining factor (generally) they quit they day job if they had the cash flow. One half of that equation is the debt.
The other day I was at a local department store, and dutifully I was asked at the till “will this be on you store’s name credit card.” I said what I often do. “It will be if you refuse to take cash. Normally, the clerk chuckles and says “oh, we still take cash.” but this one tried to reverse, “sure, we don’t take cash.” (of course, she was just joking). That store’s credit card presently is charging 28.5% interest on their card. Can you see why everyone at the till is told that they have to ask this to every customer. Amazingly enough, no one seems offended. In fact, some even do it, especially if there is a small price reduction of some “loyalty bonus program” associated with putting it on that card.
Think about what God’s word says on the matter:
Proverbs 22:7 “The rich ruleth over the poor, and the borrower is servant to the lender.”
Would you chose to make yourself a servant (slave)? That what happens when you borrow.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
Again, good counsel. If we do trust God, then we really need to pay attention to how we handle the resources He has given us.
I am sure we’ll talk more about this at a later point.
Tuesday, October 20, 2009
With some minor delays, we are back in action
Hello and welcome to the start of what hopes to be an encouraging adventure. My name is Brad, and I have become "retired". I am 38 years old. I am married to my lovely wife Julie, and we have 7 children (our 8th is due around the new year). This blog was put on hold from when it was first created. In fact, it came very close to never being created at all. You see, we had a fire and lost everything materially in the world. Then we had a struggle with the insurance company while they investigated to see whether we would be insured or not. Fortunately, we were, but that is all part of the past. As I said though, it did delay the start of this. For several months we travelled to a Lake in Saskatchewan, to a city outside of Calgary, to the West coast of BC, to the capital of Idaho and Montana. It was a time of soul searching. It was a time to see where are values were and what our hopes were for the future...and now, here we are.
We presently reside in a small Saskatchewan town. We still have the large project of putting together the insurance claim, plus homeschooling our children, plus outside social and church activities, plus I am continuing some education that I always wanted to finish. In short, it's a busy world. However, I think it's a world a small minority would want to see, and perhaps be a part of.
It is a simple world in many respects. It is a world free of some burdens that we had failed to notice and felt they were part of our "leisure and enjoyment". If you are interested...we invite you to come along.
We presently reside in a small Saskatchewan town. We still have the large project of putting together the insurance claim, plus homeschooling our children, plus outside social and church activities, plus I am continuing some education that I always wanted to finish. In short, it's a busy world. However, I think it's a world a small minority would want to see, and perhaps be a part of.
It is a simple world in many respects. It is a world free of some burdens that we had failed to notice and felt they were part of our "leisure and enjoyment". If you are interested...we invite you to come along.
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