Articles worth noting

A couple of key themes individuals should be aware of today:

• First, the financial advice business continues to be thick as bricks in their stubborn insistence on putting their own profit and sales targets ahead of the best interests of their clients.  As financial services firms continue to lose revenue and move through a well-deserved secular downsizing phase, which will continue to prompt thousands of lay offs in the sector over the next couple of years, maybe it is time to admit they have a flawed business model that gouges their clients and adds no value?  Maybe time to try a new approach?  Their response:  “Hell no” as they continue to fight meaningful reform with intensified government lobbying.  See:  The financial industries long path to putting the clients first

• Second, baby boomers (especially in Canada) who are under-saved for retirement have been doubling down on debt to own high-end homes in the hopes they will be able to sell in the next few years and cash out profits for retirement.  There is a big problem with this exit plan: the young folks behind the boomers are broke, carrying record student debts and under-employed.  42% of 20 somethings are still living with their parents. Few will be able to buy expensive housing off boomers over the next few years:

“Mortgage broker Steve Garganis sees more and more baby boomers adopting what he calls “the 10-year plan.” It consists of buying up — not down — into the most expensive house they can afford in their 50s, even if the kids are gone, with the notion of cashing out as they ready for retirement.  See:  Boomers gambling home values will save them

Meanwhile Toronto’s epically overbuilt condo market seems to be finally feeling the weight of declining demand and excess inventory. See: Toronto condo projects on hold as sales plunge