Low interest rates along with low mortgage rates appear to be the reason for all the debts. It certainly is a facilitator but when did people stop being accountable for their finances? I had a bit of a rant about it a couple of weeks ago by saying we can’t blame the banks and I won’t cover this again
However, on Thursday, CIBC released a report that had all major newspaper writing about it. The key point everyone was writing about is that baby boomers are piling on more debt. What I find astonishing over the past little while is how numbers are always used to prove a point but it’s often easy to use numbers in the wrong context. For example, we heard for a while now that the debt ratio in Canada was increasing and reaching the level the U.S. had before the housing market crash and quickly it turns into a housing market crash and the news sensationalize it. The numbers from CIBC now say that the debt increase is due in majority by the many that currently hold debts and the babyboomers. My question is, do we really see the entire puzzle yet? If we did and it was so easy, couldn’t we fix it? When it comes to the babyboomers, do we know if they have a pension plan? They worked when pension plans were usually provided. What about the changes in life expectancy and retirement? As much as Banks can create reports based on their data, often times their data is out of date (I know my bank doesn’t have an accurate picture of my finances) and they can’t be aware of assets held in other institutions without regular meetings with clients.
Don’t get me wrong, I am the first to say these two things:
- Many live above their means
- The hot housing sectors need to cool off
Do you have a good handle on your debt? I personally continue to pay my mortgage and focus on my Financial Freedom goals.
On to some worthy readings from other bloggers.
There are a couple of Quicken reviews as well. I am a big user of Quicken and have used it ever since I got my first job after university.
- Dividend Ninja with ‘What Should I Invest In for 2012? Part-1‘
- Dividend Ninja with ‘What Should I Invest In for 2012? Part-2‘
- My Own Advisor with ‘Welcoming Sysco to my portfolio’
- Dividend Monk with ’6 Solid Dividend Payers with Particularly Powerful Brands’
- Dividend Growth Investor with ‘Active Dividend Growth Investing‘
- The Dividend Guy Blog with ‘4 Top Canadian REITs For 2012‘
- Boomer and Echo with ‘Using Tax Free Savings Accounts In Retirement‘
- Retire Happy Blog with ‘The case for low cost passive investing‘
- Canadian Finance Blog with ‘Financial Goals That Are Easy To Accomplish‘
- Young and Thrifty with ‘Quicken Home and Business 2012 Review‘
- Balance Junkie with ‘Quicken Home and Business 2012 Review‘