The Wealthy Barber is closing up shop の全文書き起こし

00:03:56.639 The the big theme of chapter four of the first book uh is held up. 00:03:56.719 --> 00:04:08.159 In fact, I still emphasize it strongly on stage and on page in the new book, and the empirical evidence supports it more than ever as being the way to go, that it's just a more effective way for most people to save than say budgeting. 00:04:08.319 --> 00:04:09.840 So it certainly stood the test of time. 00:04:10.000 --> 00:04:13.759 Interestingly, the insurance section I think has stood the test of time quite well too. 00:04:13.919 --> 00:04:17.120 I think a lot of the broad points really held up well. 00:04:17.279 --> 00:04:19.040 The problem is the details changed so much. 00:04:19.120 --> 00:04:23.600 You know, when I wrote the book, we had RSPs, now we have TFSAs, FHSAs, and so on and so forth. 00:04:23.759 --> 00:04:30.560 In terms of what fell down, I mean, back when I wrote the book in 87, 88, it came out in 89, there were no ETFs. 00:04:30.720 --> 00:04:33.439 There were very few index funds available in Canada. 00:04:33.600 --> 00:04:37.680 So most people for equity exposure turn to traditional mutual funds. 00:04:37.839 --> 00:04:42.399 And in Canada, of course, those are often laden with very high costs, two to two and a half percent. 00:04:42.560 --> 00:04:44.639 And those have definitely impacted returns. 00:04:44.800 --> 00:04:47.519 Interestingly, returns for the most part have still been quite good. 00:04:47.680 --> 00:04:54.399 The markets have been so robust that even people paying higher fees have outperformed GICs and alternative investments. 00:04:54.720 --> 00:04:57.759 But should index funds probably be the way for most people to go? 00:04:57.839 --> 00:04:58.560 Yeah, for sure. 00:04:58.879 --> 00:05:00.720 Have you been thinking a long time about updating it? 00:05:00.800 --> 00:05:02.560 Was there a moment where you said, man, it's time now? 00:05:02.800 --> 00:05:04.480 Yeah, it a lot of things came together. 00:05:04.560 --> 00:05:10.560 I did a very short video before I started doing some online content on FHSA's, the first home savings account. 00:05:10.639 --> 00:05:16.079 I was so frustrated with how few young Canadians who could be taking advantage of them were taking advantage of them. 00:05:16.240 --> 00:05:18.720 I saw the response to that, and that got me a little interested. 00:05:18.800 --> 00:05:20.800 But also my kids are in the target demographic. 00:05:20.879 --> 00:05:21.759 They're in their 30s. 00:05:21.920 --> 00:05:23.600 Their friends were asking questions. 00:05:23.759 --> 00:05:26.959 My friends' kids were asking a lot of questions, and it's tougher now. 00:05:27.120 --> 00:05:28.079 I mean, it really is. 00:05:28.160 --> 00:05:29.519 It's tougher for a couple of reasons. 00:05:29.600 --> 00:05:33.920 The cost of living is very high, especially as it uh impacts real estate prices. 00:05:34.000 --> 00:05:39.759 And then, of course, the algorithms, social media are making it so much more difficult to live within your means to avoid temptation. 00:05:39.920 --> 00:05:42.480 And I thought for all those reasons, the book can help. 00:05:42.720 --> 00:05:46.639 And so I set out to rewrite it, thinking initially it would take me, by the way, four to six months. 00:05:46.720 --> 00:05:47.839 I thought, ah, it's a rewrite. 00:05:47.920 --> 00:05:49.120 It'll take uh less time. 00:05:49.279 --> 00:05:54.240 It took me more time to do the rewrite than it did to do the original because there's so much more to teach. 00:05:54.399 --> 00:05:55.920 And you have to balance it all off. 00:05:56.000 --> 00:06:03.120 And what I quickly realized is you're not just going to explain what an FHSA is, what a TFSA is, you're going to recognize that people can't do it all. 00:06:03.439 --> 00:06:07.839 And in fact, in these tough times, it's very difficult to balance off even one or two of these priorities. 00:06:07.920 --> 00:06:11.439 So, how do figure people figure out which is the right route for them to take right now? 00:06:11.519 --> 00:06:12.639 How do they prioritize? 00:06:12.720 --> 00:06:13.759 What are the nuances? 00:06:13.920 --> 00:06:17.680 And then you're figuring out what do I put in the book, what do I leave out of the book, what's too much? 00:06:17.920 --> 00:06:18.720 Rewriting it. 00:06:18.800 --> 00:06:20.240 I do a lot of testing as I go. 00:06:20.399 --> 00:06:24.079 In fact, I probably have one of the stranger writing techniques you'll see. 00:06:24.240 --> 00:06:27.439 Everything is tested with the target audience on an ongoing basis. 00:06:27.519 --> 00:06:28.959 And their feedback is garnered. 00:06:29.040 --> 00:06:29.759 Did they understand it? 00:06:29.839 --> 00:06:30.959 What else did they want to know? 00:06:31.120 --> 00:06:32.800 What did they think was too much, et cetera? 00:06:32.879 --> 00:06:35.120 And then rewriting is done over and over again. 00:06:35.199 --> 00:06:37.279 And that's why it takes so long to put it all together. 00:06:37.600 --> 00:06:41.279 I feel bad that you've joined our show because our standards are not anywhere near as high as that. 00:06:41.519 --> 00:06:43.680 It's written and it's it's out the door to keep it. 00:06:44.079 --> 00:06:47.600 So your viewers don't know that this is our ninth take right now with doing our thing. 00:06:47.839 --> 00:06:48.319 No, they do not. 00:06:48.639 --> 00:06:49.040 They do now. 00:06:49.120 --> 00:06:49.759 Thanks for telling them. 00:06:49.839 --> 00:06:50.319 We appreciate it. 00:06:50.560 --> 00:06:51.600 Where are you guys, by the way? 00:06:51.839 --> 00:06:53.199 We're in the great city of Sault Ste. 00:06:53.279 --> 00:06:55.360 Marie Village Media's headquarters is up north. 00:06:55.439 --> 00:06:56.240 Uh, we're in Sault Ste. 00:06:56.399 --> 00:07:00.160 Marie, Ontario, but we operate sites all across the province, uh, including Toronto. 00:07:00.319 --> 00:07:05.439 Uh, the Trillium of Queen's Park is the largest bureau of uh Queen's

Park reporters, all operated by Village Media. 00:07:05.519 --> 00:07:08.639 But we started with one site called Sioux Today here in Sault Ste. 00:07:08.800 --> 00:07:10.160 Marie about 23 years ago. 00:07:10.399 --> 00:07:10.879 About that, yeah. 00:07:11.040 --> 00:07:13.519 Well, you know what, honestly, what a great story your story is. 00:07:13.839 --> 00:07:14.800 I mean, it really is. 00:07:14.879 --> 00:07:17.839 And I mean, I know the total uh readership is extremely high. 00:07:18.000 --> 00:07:20.959 You'd think with all of this success, you guys could afford a little bigger room. 00:07:21.199 --> 00:07:24.000 It looks like you're in a very, very tiny room there. 00:07:24.240 --> 00:07:28.959 Yeah, it's just for the we didn't pay you to say that, but thank you for saying that, David, because we've been arguing that for a long time. 00:07:29.199 --> 00:07:30.959 And it actually looks bigger on TV, dude. 00:07:31.199 --> 00:07:32.000 Yeah, you should actually. 00:07:32.160 --> 00:07:33.680 If you're actually here, I don't think you're at all. 00:07:34.319 --> 00:07:38.639 The whole time I'm talking to you guys, I'm thinking, is it physically possible for them to get out of that room? 00:07:38.959 --> 00:07:41.439 It looks like they may be jammed in there for the rest of their lives. 00:07:41.759 --> 00:07:41.920 It is. 00:07:42.319 --> 00:07:43.920 No, seriously, congrats on the business. 00:07:44.079 --> 00:07:48.160 I mean, we need more entrepreneurship, we need more business formation in Canada. 00:07:48.319 --> 00:07:50.399 It's one of the things that we're really struggling with. 00:07:50.480 --> 00:07:54.399 And so for you to start that up and get it to these levels, it's quite a remarkable achievement. 00:07:54.800 --> 00:07:55.120 Well, for sure. 00:07:55.199 --> 00:07:59.920 It definitely wasn't on Scott and I's back, but we're very we're very proud of the operation and the people that run it. 00:08:00.000 --> 00:08:02.399 It's uh yeah, it's it's a great success story, David. 00:08:02.480 --> 00:08:02.879 It really is. 00:08:03.040 --> 00:08:03.920 Uh, so thank you for that. 00:08:04.000 --> 00:08:04.560 I appreciate it. 00:08:04.720 --> 00:08:08.480 You did mention the cost of living in your last answer, and it's a great point. 00:08:08.720 --> 00:08:19.120 Is there any is the cost of living obviously it's higher now than it was when you wrote the book, but in terms of the percentage, do we live in a much more difficult world in terms of cost of living than we did in the 80s when you wrote this book? 00:08:19.439 --> 00:08:19.920 Yeah, we do. 00:08:20.000 --> 00:08:22.000 And you know, statistically that can be backed up. 00:08:22.079 --> 00:08:23.839 Let's leave out real estate for a second. 00:08:24.000 --> 00:08:25.600 The last five years have been very tough. 00:08:25.680 --> 00:08:27.360 That inflation run was difficult. 00:08:27.519 --> 00:08:32.399 I would argue that the true inflation rate was much higher than the reported inflation rate. 00:08:32.559 --> 00:08:37.279 I mean, remember when they said that over the five-year period that we had food costs go up 20-something percent. 00:08:37.440 --> 00:08:39.600 Well, if you're in the grocery store, you knew that wasn't the case. 00:08:39.679 --> 00:08:42.559 They were going up significantly more than that over that stretch. 00:08:42.720 --> 00:08:47.679 And even now, when people say, well, inflation is more subdued, we've got it more under control, but that doesn't mean prices have gone down. 00:08:47.759 --> 00:08:49.200 We haven't had deflation. 00:08:49.440 --> 00:08:53.679 So people are still dealing with very high prices, then add in the cost of real estate. 00:08:53.840 --> 00:08:58.240 And a higher percentage of people's income has to go to supporting their rent, supporting their mortgage. 00:08:58.320 --> 00:09:11.360 And if you look, by the way, beyond mortgage costs with house owners with homeownership, at property taxes, at insurance, at upkeep, at doing a rental, all of that, in my mind, in most areas, has risen at a faster-than-CPI clip. 00:09:11.679 --> 00:09:13.200 So all of this is very challenging. 00:09:13.360 --> 00:09:17.039 And then on top of it all, can you imagine trying to get together a down payment? 00:09:17.120 --> 00:09:17.200 No. 00:09:17.440 --> 00:09:25.759 When you have homes trading at this multiple of income, and you're trying to, let's say, for example, hit that 20% level to avoid having to get the insurance. 00:09:26.000 --> 00:09:35.919 Oh my gosh, if you're looking at a$700,000 home, let's say you're in Toronto and you're looking at an$800,000 home, that's a$160,000 down payment you have to serve, save after tax. 00:09:36.159 --> 00:09:41.360 That's why, sadly, probably the most important advice in financial planning now is choose your parents wisely. 00:09:41.759 --> 00:09:44.480 That's that's a great and we don't want it to be that way. 00:09:44.720 --> 00:09:46.240 I mean, that's not what it's supposed to be about. 00:09:46.320 --> 00:09:51.200 If people are working hard, saving diligently, we want everybody to be able to get ahead. 00:09:51.440 --> 00:09:54.480 And so these real estate prices have definitely made it more challenging. 00:09:54.559 --> 00:10:01.440 And as I alluded to earlier, I would say also temptation is more difficult for most of us to resist now, including young people. 00:10:01.600 --> 00:10:03.279 The algorithms are always coming at you. 00:10:03.440 --> 00:10:06.559 Your friends are coming at you through highlight moments in social media. 00:10:06.720 --> 00:10:08.720 Credit is ubiquitously available. 00:10:08.879 --> 00:10:12.320 You know, anybody can just tap and go now and they've purchased whatever they want. 00:10:12.480 --> 00:10:17.759 You add all of this up, and my argument is that the boomers don't realize it is indeed tougher right now. 00:10:18.000 --> 00:10:22.480 Uh so just talking about uh homeownership, uh, David, for a second,

you mentioned that you've got kids in your 30s. 00:10:22.639 --> 00:10:24.240 Frisco and I uh both have kids. 00:10:24.320 --> 00:10:27.679 Everybody's scrimping and saving to try and, you know, get that down payment. 00:10:27.919 --> 00:10:31.440 Homeownership used to be the cornerstone of financial advice. 00:10:31.600 --> 00:10:33.039 Is that still the case today? 00:10:33.360 --> 00:10:34.240 You know, I don't I don't know. 00:10:34.320 --> 00:10:41.120 I mean, uh, even when you read The Wealthy Barber or you've listened to me over the years, I think it's a part of a solid financial plan for many. 00:10:41.279 --> 00:10:45.840 I think lots of renters have actually done well if they've been able to diligently invest the difference in the cost. 00:10:46.159 --> 00:10:47.200 Most haven't, frankly. 00:10:47.360 --> 00:10:48.879 They tended to spend them. 00:10:49.039 --> 00:10:50.879 But I don't think you should look at it as a cornerstone. 00:10:50.960 --> 00:10:52.080 It's just one facet of it. 00:10:52.159 --> 00:10:57.600 You still have to build up a big pool of capital that's going to allow you to retire, spin off the necessary income. 00:10:57.759 --> 00:10:59.440 So it's a component of it for sure. 00:10:59.600 --> 00:11:08.399 But if you make it your primary focus, your exclusive focus, as some people have, you end up with a fully paid for home down the road, maybe even worth a lot, but you don't have other assets. 00:11:08.639 --> 00:11:11.200 And then you've got to look at reverse mortgages moving down. 00:11:11.360 --> 00:11:16.240 People don't move down as often or as smoothly as is often uh uh described. 00:11:16.320 --> 00:11:17.279 And so it it's tough. 00:11:17.360 --> 00:11:19.440 It has to be a part of a balanced approach. 00:11:19.679 --> 00:11:34.240 I think in general, the people I've seen who have handled their money well and they now at age 55, 65, 75, are where they need to be, have probably spent a little bit less on homeownership and made sure that they've taken full advantage of things like TFSAs, RSPs, et cetera. 00:11:34.639 --> 00:11:43.440 Just going back to your previous answer, David, you made me just my mind is spinning because it just shows how much of a different world those main characters in your original book are walking into now, all these years later. 00:11:43.600 --> 00:11:46.960 How much of that was that on your mind as you redid the book and updated it? 00:11:47.120 --> 00:11:48.720 Because there are so many things that are different. 00:11:49.039 --> 00:11:49.440 Hugely. 00:11:49.600 --> 00:11:51.840 I mean, that's why the book had to be tested so thoroughly. 00:11:51.919 --> 00:11:54.559 You know, when I wrote the book, I was in the target demographic. 00:11:54.960 --> 00:11:56.240 And so were all of my friends. 00:11:56.399 --> 00:12:05.440 Now, obviously, I'm a lot older, and therefore tapping into the minds of all the people in their 20s and 30s, making sure you're covering their questions, being realistic, by the way. 00:12:05.519 --> 00:12:08.639 It's you can't just go out there and say, do the following seven things. 00:12:08.799 --> 00:12:11.600 You have to recognize that for most people, that is not possible. 00:12:11.759 --> 00:12:15.279 So, again, how do you prioritize if you're only able to do one of these two? 00:12:15.440 --> 00:12:17.360 How do you figure out which one is right for you? 00:12:17.519 --> 00:12:20.879 How do you help them to get past all these home ownership challenges? 00:12:21.039 --> 00:12:23.919 Not easy, but here are some tips you can put into play, et cetera. 00:12:24.080 --> 00:12:25.519 But yes, you had to be very realistic. 00:12:25.600 --> 00:12:27.840 I had to do a lot of outreach to the target audience. 00:12:28.000 --> 00:12:31.919 Fortunately, I have a lot of inbound conversations where people are asking questions. 00:12:32.080 --> 00:12:34.320 Here's what we did wrong, here's what we did right. 00:12:34.480 --> 00:12:38.799 And then I think one big advantage to being older, maybe the only one, is there are a lot of experience. 00:12:38.879 --> 00:12:48.320 So when I wrote the chapter, for example, on saving savvy, I've been around long enough now to know what does work, what doesn't work, what tips really should be weighted, et cetera. 00:12:48.559 --> 00:12:52.159 That chapter was the only chapter in the whole book that didn't take too long to write. 00:12:52.399 --> 00:12:56.720 That when I put it together, and funnily enough, it's the longest chapter, it tested well right out of the gate. 00:12:56.799 --> 00:12:58.480 But again, a lot of that's because I'm old. 00:12:58.720 --> 00:13:02.559 And so you've you've seen a lot of what is, you know, is effective and what isn't. 00:13:02.799 --> 00:13:02.960 Yeah. 00:13:03.120 --> 00:13:09.360 You know what I wonder too, you think about how much the world has changed in the last 36 years, and how quickly the world is changing every day now. 00:13:09.600 --> 00:13:11.360 Just it seems like it changes faster and faster. 00:13:11.440 --> 00:13:15.519 I think of obviously the advent of AI and what's gonna how what's gonna where we're gonna be. 00:13:15.919 --> 00:13:19.440 Does that concern you in terms of all the rules we know now? 00:13:19.759 --> 00:13:24.159 In five years from now, depending on how the world moves, will they even be relevant? 00:13:24.399 --> 00:13:26.399 Okay, so I'm gonna break out AI for a second. 00:13:26.480 --> 00:13:28.399 All right, I'll tell you a quick story about AI. 00:13:28.559 --> 00:13:34.159 I was writing the preface to the book, and right while I'm writing it, a friend of mine sends me a note and says, Well, what about AI? 00:13:34.240 --> 00:13:36.399 Like, what if it wipes out all our jobs in five years? 00:13:36.480 --> 00:13:37.679 Then what position will you take? 00:13:37.840 --> 00:13:38.960 And I said, fetal. 00:13:39.519 --> 00:13:41.840 And because I'm already there, David. 00:13:41.919 --> 00:13:43.120 I'm

already in that position. 00:13:43.360 --> 00:13:49.600 I don't have an answer to what happens if AI comes along and overwhelms the job market and we have 30 and 40 percent unemployment rate. 00:13:49.679 --> 00:13:51.360 So let's take that one out for a second. 00:13:51.600 --> 00:13:54.639 On the other changes, amazingly, they've always been there. 00:13:54.799 --> 00:13:59.600 Maybe the speed of change is accelerating because technology is becoming a bigger and bigger part of our lives. 00:13:59.759 --> 00:14:11.200 But I actually teach people to tune out the noise, stick with the common sense basics, you know, spend beneath your income level, slowly pay down your debts, quickly pay down your high interest rates. 00:14:11.360 --> 00:14:15.039 Let's take advantage of RSPs and TFSAs and take advantage of index funds. 00:14:15.200 --> 00:14:19.440 Remember, the companies that are doing all of these wonderful things are available through the index. 00:14:19.519 --> 00:14:23.360 They won't all prosper, but the long-term returns, I think, will stay quite solid. 00:14:23.440 --> 00:14:27.759 So a lot of what I teach is don't get caught up in the noise, don't get caught up in the panic. 00:14:27.919 --> 00:14:33.360 Remember as you hear these negative stories that lurking beneath the surface are all kinds of positive things. 00:14:33.519 --> 00:14:42.639 Every day, very smart people, very smart companies are innovating, creative, coming up with new things that are going to better our lives and going to lead to some success in these investment alternatives. 00:14:42.799 --> 00:14:45.039 So I tend to be pretty calm and cool about that. 00:14:45.200 --> 00:14:50.879 AI, on the other hand, I don't think any of us knows exactly what that's going to lead to over the next five to 10 years. 00:14:51.120 --> 00:14:54.960 Uh, David, you've been doing this uh a really long time and you've seen a lot of things. 00:14:55.120 --> 00:14:57.200 What's the biggest mistake that investors make? 00:14:57.440 --> 00:15:00.080 Well, I think starting too late, obviously, we talk about that. 00:15:00.159 --> 00:15:05.279 And sadly, that's getting worse because again, now it takes so long to accumulate the down payment. 00:15:05.519 --> 00:15:16.159 And so even diligent savers who are doing a wonderful job of living within their means can take five, 10 years in some instances in the big city to put together that down payment, and that can crowd out other savings. 00:15:16.320 --> 00:15:22.159 Then when they get into the home, as I mentioned earlier, the costs of home ownerships are such that it makes it difficult to save. 00:15:22.320 --> 00:15:27.360 So procrastination is one thing, but this is justified procrastination in a lot of cases. 00:15:27.519 --> 00:15:28.720 No easy answers there. 00:15:28.879 --> 00:15:38.240 On a very basic mistake, I see that is absolutely a killer, the number of Canadians who don't take advantage of their employer matching on a group RSP. 00:15:38.399 --> 00:15:41.120 Very few things make me pull my hair out to that extent. 00:15:41.279 --> 00:15:45.200 So we'll see somebody and they've done some good things, but they're not taking advantage of that. 00:15:45.360 --> 00:15:46.159 That's free money. 00:15:46.240 --> 00:15:50.720 If it's a dollar for dollar match, that's 100% return on your money the second you take advantage of it. 00:15:50.799 --> 00:15:58.000 And if I can throw one more out there, I'm honestly not judgmental when people ask me questions, show me their spending summaries, look for help, et cetera. 00:15:58.080 --> 00:16:00.960 I kind of look at it and say, hey, are some things that you maybe should think through. 00:16:01.039 --> 00:16:01.919 Have you thought about this? 00:16:02.080 --> 00:16:07.200 There's one area I am pretty judgmental on, and that's what a lot of people spend on cars. 00:16:07.600 --> 00:16:18.240 But if you look at the line item for car expenses, not just the actual car payments, but beyond that, you've got parking, you've got gas, some unavoidable, unquestionably, but a lot of this we take on voluntarily. 00:16:18.480 --> 00:16:23.279 So while the complaints about the real estate prices, the cost of living, they're totally justified. 00:16:23.440 --> 00:16:27.200 You would think that that would lead us to spending less on cars as a percentage of income. 00:16:27.440 --> 00:16:28.240 Not the case at all. 00:16:28.480 --> 00:16:34.159 The car industry has done a wonderful job of making us uh define ourselves to some extent by the car we drive. 00:16:34.399 --> 00:16:37.919 Not everybody falls victim to this, but an unfortunate percentage of people do. 00:16:38.240 --> 00:16:38.799 That's a great point. 00:16:38.879 --> 00:16:43.519 That's the one thing I'm definitely not an expert, but I've been arguing that my whole life because all my buddies are into cars. 00:16:43.600 --> 00:16:46.080 They love spending all their money on cars, and I'm not at all a car. 00:16:46.639 --> 00:16:47.679 I have a car that's paid off. 00:16:47.759 --> 00:16:49.840 It's it's old, it runs, it's fine. 00:16:50.000 --> 00:16:52.399 And I feel like I've done better than because of that. 00:16:52.480 --> 00:16:53.200 That's been a huge help. 00:16:53.279 --> 00:16:55.039 But you what you mentioned is true, right, David? 00:16:55.200 --> 00:17:04.240 That push, uh, you mentioned it earlier, the algorithms, the social media, that idea that we have to keep up with the Joneses, it's harder to fight now, even than it was a few years ago. 00:17:04.480 --> 00:17:05.920 You know, the Joneses are everywhere. 00:17:06.000 --> 00:17:08.480 Yeah, and oftentimes the Jodens are overwhelmed with that. 00:17:08.640 --> 00:17:09.519 We just don't realize it. 00:17:09.599 --> 00:17:17.359 And again, you're only seeing the highlight moments of all of your friends and colleagues and co-workers and everybody else on social media, and it just pulls us in and makes us spend. 00:17:17.440

--> 00:17:21.759 And then with credit you being with ubiquitously available, as I mentioned, that's a bad combination. 00:17:21.839 --> 00:17:31.519 But just going back to your point about how you've handled your car expenses, that decision alone has freed up a lot of money for you to be able to max a T FSA, for example. 00:17:31.680 --> 00:17:40.400 I see it all the time when I see people of income levels that are equal, couples, and they're doing everything the same, equal income levels, equal housing costs, even. 00:17:40.720 --> 00:17:45.119 One couple is doing a very good job managing car expenses, the other not so much. 00:17:45.279 --> 00:17:48.160 The difference in their financial planning is astounding. 00:17:48.319 --> 00:17:51.279 And so that's one thing I think all of us have to take a closer look at. 00:17:51.440 --> 00:17:53.359 But I've almost given up a little bit on that. 00:17:53.759 --> 00:17:56.880 Because I've been preaching this for 20 to 30 years and don't seem to be too impactful. 00:17:56.960 --> 00:18:04.799 And of course, cars have become even more expensive relative to incomes over the last five years, as have car repairs, and therefore, logically, as has car insurance. 00:18:04.880 --> 00:18:05.119 Yes. 00:18:05.279 --> 00:18:07.440 And so all of this seems to be getting worse, not better. 00:18:07.680 --> 00:18:08.160 It's insane. 00:18:08.240 --> 00:18:11.200 I I swear this is fascinating to me because uh my son is 16. 00:18:11.279 --> 00:18:13.039 We talk about finances all the time. 00:18:13.200 --> 00:18:19.920 He has a job part-time, he referees hockey and baseball, he's making some money, he's putting it a lot of it aside, which is which is great. 00:18:20.079 --> 00:18:24.000 And I've already ordered him ordered him a copy of the updated book, so he'd be happy to know that as well. 00:18:24.240 --> 00:18:33.839 But in terms of a kid like that, when he turns 18, uh I'm sure there's discuss in the book, but is it better to max out your RSP starting at age 18, or is it better to max out the TFSA? 00:18:34.400 --> 00:18:35.119 It's tricky. 00:18:35.200 --> 00:18:36.079 You know, it really is. 00:18:36.240 --> 00:18:37.680 The math on that is challenging. 00:18:37.759 --> 00:18:39.759 It took me several pages to walk it through. 00:18:39.839 --> 00:18:42.559 I can't give you a quick answer right now, but I do want to say this. 00:18:42.720 --> 00:18:46.880 If he says, should I be using an RSP or a TFSA, the answer is yes. 00:18:47.519 --> 00:18:48.799 Okay, you should be saving. 00:18:48.880 --> 00:18:50.880 And those are very tax-efficient ways to save. 00:18:51.039 --> 00:18:53.359 I'll let the book guide him through how to think it all through. 00:18:53.519 --> 00:19:04.400 Normally, by the way, in a relatively low income level, relatively low tax bracket at age 18, 19, 20, potentially in school, etc., the TFSA is probably the better of the moves. 00:19:04.559 --> 00:19:07.759 But without knowing his specifics,

I wouldn't want to say that for sure. 00:19:08.000 --> 00:19:12.640 The best thing to tell him from me is to get dad's money. 00:19:13.440 --> 00:19:13.759 Okay. 00:19:14.000 --> 00:19:16.640 Somehow, some way, get some of dad's money. 00:19:17.119 --> 00:19:19.200 He's already has enough of that already, David. 00:19:19.440 --> 00:19:22.880 David, uh, you've made a career out of uh simplifying money. 00:19:22.960 --> 00:19:28.160 What's the hardest part uh hardest part about keeping financial advice simple in 2025? 00:19:28.400 --> 00:19:28.960 Well, you know what? 00:19:29.039 --> 00:19:37.839 What a coincidence because you're asking that on the heels of the previous question about the RSP versus TFSA, and how do you again show people how to prioritize to all this? 00:19:37.920 --> 00:19:40.000 So it's not enough they understand it anymore. 00:19:40.240 --> 00:19:41.920 These products are all wonderful, by the way. 00:19:42.000 --> 00:19:45.839 If you don't like TFSAs, you're a weirdo and you have a fundamental misunderstanding of math. 00:19:46.000 --> 00:19:48.720 The FHSA is the best product we've ever introduced. 00:19:48.880 --> 00:19:52.880 So they're all wonderful products, but we have a bit of the paradox of choice. 00:19:53.039 --> 00:19:56.000 There's a lot to understand now, a lot for people to look at. 00:19:56.160 --> 00:19:59.039 It's one of the reasons why I think the new wealthy barber will help people. 00:19:59.200 --> 00:20:03.680 It demystifies this and kind of walks them through again how to prioritize it, how to understand it. 00:20:03.759 --> 00:20:06.160 And it's the same, by the way, when you look at investment advice. 00:20:06.240 --> 00:20:11.839 You go on to TikTok, you go on to Instagram, there's an overwhelming number of people providing advice. 00:20:11.920 --> 00:20:13.279 You don't know their backgrounds. 00:20:13.440 --> 00:20:16.720 Some are very credible, by the way, some are great communicators in Canada. 00:20:16.799 --> 00:20:24.799 We're lucky to have a few top drawer ones, but a lot are coming at this with no experience or vested interest or trying to sell a course, whatever. 00:20:24.960 --> 00:20:31.119 How does the public take in all this information and really figure out, you know, what matters, what doesn't matter, what's truthful, what's not? 00:20:31.279 --> 00:20:31.920 That's very tricky. 00:20:32.160 --> 00:20:32.960 Oh, it's so tricky. 00:20:33.119 --> 00:20:34.319 Um, here's another tricky question. 00:20:34.400 --> 00:20:36.079 I know this is a totally loaded question. 00:20:36.240 --> 00:20:38.400 The bar the budget, the federal budget just came out. 00:20:38.480 --> 00:20:45.200 I don't think you've probably seen it, had a chance to read all 493 pages, but anything that struck you in particular, David, that you liked or didn't like about the budget? 00:20:45.599 --> 00:20:49.759 Well, I I think you can see that at least their understanding we need investment. 00:20:49.920 --> 00:20:56.160 If you look in Canada right now, the bottom percentile, whatever they are, 40%, are really struggling. 00:20:56.240 --> 00:20:58.240 I mean, I see it when I see the spending summaries. 00:20:58.319 --> 00:21:01.440 That's not again people are being undisciplined and spending carelessly. 00:21:01.519 --> 00:21:03.359 It is tough to make ends meet right now. 00:21:03.519 --> 00:21:08.880 We need wage growth, but we need wages to grow at a faster clip than the CPI. 00:21:09.039 --> 00:21:10.559 That's absolutely pivotal. 00:21:10.720 --> 00:21:14.079 And to do that, there's only one way we have to raise productivity. 00:21:14.240 --> 00:21:17.519 And to raise productivity in turn, we have to get more investment. 00:21:17.680 --> 00:21:21.680 We have to get more investment domestically, we have to get more foreign direct investment. 00:21:21.839 --> 00:21:24.480 How do we make Canada more inviting to capital? 00:21:24.640 --> 00:21:27.519 And so you could see a big part of the budget was about that. 00:21:27.680 --> 00:21:37.200 How do we lay the foundation for people thinking there's more opportunity here, there's better potential returns here, the government's going to be working in partnership in some way, shape, or form in certain areas. 00:21:37.359 --> 00:21:39.440 So you could see that effort was being put into place. 00:21:39.519 --> 00:21:45.599 Now, of course, the devil's in the details, always tough to execute, but I think you could see that direction being pursued. 00:21:45.759 --> 00:21:49.359 A lot of people are complaining, hey, yeah, but it's a$78 billion deficit. 00:21:49.519 --> 00:21:51.759 Very tough to strike all these balances right now. 00:21:51.920 --> 00:22:03.200 You know, it's very difficult not to have a significant deficit as we again try to provide some of this capital to take on our coveted programs and make sure they're honored, but also provide the investment capital in some of these areas. 00:22:03.359 --> 00:22:04.880 Would you want to be a politician right now? 00:22:05.279 --> 00:22:06.000 Holy schmokes. 00:22:06.240 --> 00:22:06.559 No way. 00:22:06.799 --> 00:22:11.839 Like we love to yell at politicians on both the left and the right, but what a challenging, challenging job right now. 00:22:12.160 --> 00:22:12.559 It's funny. 00:22:12.640 --> 00:22:13.680 We talk about that all the time. 00:22:13.839 --> 00:22:19.119 I mean, we we obviously have people questioning decisions that are made every day in power, but it's just not an easy job. 00:22:19.200 --> 00:22:21.039 I just couldn't imagine, especially the way we are today. 00:22:21.200 --> 00:22:21.759 Yeah, no kidding. 00:22:21.920 --> 00:22:22.160 It isn't. 00:22:22.240 --> 00:22:32.400 And you know, you know, it's this is gonna sound a little bit corny and uh kumbaya like, but I think one of the countries out there in the Western world, we're all battling tremendous debt problems. 00:22:32.559 --> 00:22:37.200 Many are battling income inequality, wealth

inequality problems that have gone too far, et cetera. 00:22:37.440 --> 00:22:45.200 One of the most important things I think we can do is somehow find more of a middle ground and stop the hatred of the left to the right and the right to the left. 00:22:45.359 --> 00:22:47.680 That is blocking a lot of the solutions. 00:22:47.759 --> 00:22:50.240 It's blocking a lot of the cooperative, innovative thinking. 00:22:50.400 --> 00:22:53.759 There are a lot of smart people out there who really do truly want to help. 00:22:53.920 --> 00:22:58.640 But by locking into these tribes, and let's be honest, they've become tribes now, almost cult-like. 00:22:58.799 --> 00:23:03.279 The far side of each is so full of hatred toward the other that we're not able to do that. 00:23:03.440 --> 00:23:12.319 And I think that maybe Canada, under good leadership, under more efforts from all of us, can stop always lashing out at the other side, whether it's left to right or right to left. 00:23:12.480 --> 00:23:13.759 I think that's a big part of the solution. 00:23:13.839 --> 00:23:15.599 Maybe I'm naive to hope it happens, though. 00:23:15.680 --> 00:23:16.240 Maybe it's impossible. 00:23:16.480 --> 00:23:17.039 It's a great move. 00:23:17.200 --> 00:23:18.000 Yeah, very well said. 00:23:18.160 --> 00:23:20.400 Uh, this has been a great uh conversation, David. 00:23:20.480 --> 00:23:21.200 So thank you for that. 00:23:21.359 --> 00:23:24.160 Before we let you go, uh anything else that we didn't cover? 00:23:24.319 --> 00:23:28.799 Uh maybe one piece of advice that you would uh give any uh any investor. 00:23:29.359 --> 00:23:34.160 I'd probably, if I were you to get a door in that room, I'd be throwing off the entire time. 00:23:34.319 --> 00:23:37.279 And not only you in a tiny, tiny room, but it's doorless. 00:23:37.440 --> 00:23:44.880 And I just have this vision of you guys spending the rest of your lives doing podcasts from there with no food, no water, and no bathroom breaks. 00:23:45.119 --> 00:23:47.920 So that's my big advice to you two is get out of there. 00:23:48.160 --> 00:23:49.039 It's 100% true. 00:23:49.200 --> 00:23:55.920 Make me a promise, David, if you're ever up in Northern Ontario, you're ever in the Sioux, come by because there is a there is a little bar around the corner, which is nice. 00:23:56.000 --> 00:23:57.200 It's just right beside the studio. 00:23:57.279 --> 00:23:59.359 So make sure you come by for a drink if you're ever up here. 00:23:59.599 --> 00:24:01.039 I will, and I love the Sioux, by the way. 00:24:01.119 --> 00:24:02.079 I've spoken there many times. 00:24:02.160 --> 00:24:06.799 Donnie James, one of my best friends, is from there and he gets up all the time, and it's a it's a great area. 00:24:06.960 --> 00:24:08.559 So love it, and thanks for having me on. 00:24:08.880 --> 00:24:09.279 Thank you, David. 00:24:09.519 --> 00:24:10.000 Awesome stuff. 00:24:10.079 --> 00:24:13.839 There's David Chilton, uh, the author of the updated version uh of The Wealthy Barber. 00:24:13.920 --> 00:24:14.559 It's a great read. 00:24:14.640 --> 00:24:18.319 Get your copy today and uh certainly uh check it out at uh wealthybarber.com. 00:24:18.400 --> 00:24:19.359 Uh, David, thanks again. 00:24:19.519 --> 00:24:20.160 Appreciate your time. 00:24:20.559 --> 00:24:21.440 Enjoyed it immensely. 00:24:21.599 --> 00:24:22.240 Thank you. 00:24:24.640 --> 00:24:25.920 That's our show for this week. 00:24:26.000 --> 00:24:35.279 Be sure to follow us across all of our social channels and sign up for free for our newsletter and watch previous episodes at closerlookpodcast.ca. 00:24:35.599 --> 00:24:46.640 You can also reach out to us anytime at closerlook at villagemedia.ca or Zach Trenzo, executive producer, and everyone who makes Closer Look possible each and every week. 00:24:46.799 --> 00:24:48.160 I'm Scott Sexmith. 00:24:48.240 --> 00:24:48.880 Thanks for watching. 00:24:49.200 --> 00:24:50.480 Enjoy the rest of your weekend. 00:24:50.559 --> 00:24:53.039 We'll see you next time right here on Closer Look. 00:24:53.440 --> 00:24:57.519 Briscoe in Scott's wardrobe, provided in part by Morris Clothing for Men.