I’m generally a glass half full kind of guy, choosing to view long-term benefit over short-term pain.
But it’s only the third week of October and I find myself feeling a taste of the winter blues. Normally the blues only set in in February. This year is different though — there’s nothing quite like staring down the barrel of a seven-month long, -30C winter in the heart of a pandemic.
It’s going to take some creativity to push through to the other side. And I imagine that’ll involve a frivolous purchase or two.
(Tomorrow is new iPhone day. Don’t judge me!)
As I write this:
- Drinking a glass of J. Lohr Riverstone Chardonnay.
- Watching the American Presidential Debate. (Sigh.)
- Rooting for the Los Angeles Dodgers.
We’re all finished with the four-part “Where Do I Start?” series, so today’s a transition to some other, shorter ideas.
Thanks for reading this week.
Quick Thought of the Week
This is one of the first years (I believe last year was the first official year) where the cost of purchasing a new iPhone in Canada is more expensive when purchased through a carrier. In the past, the murky waters of a smartphone contract somewhat hid the cost of the smartphone itself. New plans separate the cost of the device and the cost of the cellular plan itself, and it’s clear the carrier route has the more expensive option.
That said, the $40 surcharge on top of Apple’s direct-from-factory is discounted down to a 1.5% interest charge per year (assuming a 2-year contract).
So however you have your finances structured, do know it costs 1.5% in interest or so per year to purchase an iPhone through a Canadian carrier.
This statistic seems absolutely flabbergasting to me:
The Financial Times pegs the value of Delta’s loyalty program at a whopping $26 billion, American Airlines at $24 billion, and United at $20 billion. All of these valuations are comfortably above the market capitalization of the airlines themselves — Delta is worth $19 billion, American $6 billion, and United $10 billion.
There was a time a few months ago where it seemed Air Canada was an absolute steal-of-a-deal in the stock market. I’m glad I opted out.
I decided to purchase Boeing instead. And... that hasn’t gone very well either.
(At least not yet.)
How You’re Participating in the Real Estate Market Without Really Knowing It
Note: This post was originally published on The Newsprint.
Today’s idea is a short one: Do not underestimate your participation in the real estate market through the legacy of a family member. Wealth is a family concept, not an individual concept. Therefore, what’s part of your parents’ portfolio is part of your portfolio.
(Of course, you can’t count your parents’ personal net worth as your own personal net worth — bankers are sure to laugh you out of the office if you attempt to claim their wealth as your own.)
Whatever your parents leave as a legacy is (more likely than not) going to be yours (and your siblings’) job to administer.
(Not everyone’s parents will pass their wealth to their children upon death. I also recognize that one should not rest on the laurels of their parents — each individual should work for their own legacy, and ensure any legacy left to them is used to grow the overarching family legacy.)
This goes for more than just real estate. If you have a parent who has significant stock market investments, you can consider that your own participation in the stock market as well.
Do not fear the F.O.M.O. of the stock market or of the real estate market.Live vicariously through your parents. (At least, to a degree.)
In the world’s most expensive cities, there’s a high probability the parent doesn’t own their home. I imagine it’s extremely tough slugging in these cities.
But I do think the idea of participating in the real estate market through your parents stands for other investments and assets in general.
I hope this has two lasting impressions:
- This should help alleviate that depressed feeling when scouring real estate listings and looking at the sky-high prices. You can know that, if prices continue to rise, so are the personal net worths of those closest to you.
- This should free up at least some cash flow for other purposes. If you’ve put off your personal health, or have other financial goals you’re saving for, you can rest assured that waiting a little longer for that real estate investment carries less of a penalty.
Hopefully this can take some stress off the long-term real estate savings goals.
Thanks again for reading this week. Here’s to another happy, healthy, and prosperous week ahead.
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