I asked newsletter readers last week for their thoughts on shrinkflation and, guess what, no one likes it. Virtually everyone said they would rather that companies charge more for products rather than shrinking the size of packaging and keep prices in line.
How much do people dislike shrinkflation? Enough to send me a lot of photographic evidence that I will share below. Presenting the Carrick on Money Gallery of Household Shrinkflation:
In the cereal cupboard:
In the fridge:
In the pantry:
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Rob’s personal finance reading list
A June 2022 saver’s update
HighInterestSavings.ca surveys the latest developments in savings account and GIC rates. Info here on U.S.-dollar savings accounts.
Why everyone should plan for early retirement
A smart take on retirement planning – even if you plan to retire at 65 or later, it’s important to plan what would happen if you retired earlier as a result of health issues or job loss. A U.S.-focused article, but thematically relevant to we Canadians.
Life with an electric vehicle
I liked this article on the process of buying and owning an EV because it’s detailed and balanced. Included is a spreadsheet on the costs of operating the vehicle.
Housing’s long tailwind is reversing
Roughly 40 year of falling interest rates helped power the housing market. Now, rates are moving steadily higher. We are about to see housing demand meet its severest test since the 1980s and 90s.
Ask Rob
Q: My wife and I decided to move and downsize so we leased a condo in a small city near Toronto. We are in our 70s and both have some health problems, but not too serious. We just sold our home and pocketed about $900,000. We already have $400,000 invested in mostly GICs. We both get government pensions and one other small work related pension. What do I do with the $900,000?
A: Suggestion – book a consultation with a fee-for-service financial planner to discuss your current and future income needs and any thoughts you have on helping family members financially. Find out how that $900,000 can help you meet those goals and create a financial cushion for the rest of your life. Some planners can help you invest the money, others can provide some general guidance. But their financial planning services sound like just what you need. Expect to pay a couple of thousand dollars and up.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
A Q&A for expat investors on dealing with Canadian investment dealers that are members of the Investment Industry Regulatory Organization of Canada. Key point: “There is no IIROC Rule that prevents IIROC-regulated dealers from dealing with clients outside of Canada.”
The Money-Free Zone
I’m enjoying the book 305 Lost Buildings of Canada, which offers profiles and sketches of torn- down heritage buildings in cities across Canada. A co-author of the book is Alex Bozikovic, architecture critic for The Globe and Mail. I read the other day about the Garland Building, which stood next to what is now the office tower housing the Globe’s Ottawa bureau.
Tweet of the week
Personal finance expert Bridget Casey on inflation: “Can’t travel, eat out at restaurants, drive anywhere. We went from pandemic lockdown to inflation lockdown. have a nice life everybody.” Ms. Casey writes a regular column for the Globe and Mail – catch it here.
What I’ve been writing about
- Why parents should get their own finances in order – before saving for their kids
- What older parents should know about paying for their child’s wedding
- Pickup trucks and big SUVs cost us all more. It’s time to make these drivers pay their fair share
Callout alert
Interested in being featured in the Globe’s Financial Facelift feature? E-mail us about your unique financial situation at finfacelift@gmail.com.You can share your story under a false name and our photographers will obscure your identity in one of our trademark Financial Facelift photos. We’re especially keen to hear from people without a defined benefit pension plan look for advice on how to navigate their finances for retirement and other financial goals. Here’s a look at a recent profile.
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Is the middle class dead for millennials and Gen Z? • Gas prices are soaring. Are electric vehicles an affordable solution? • Crypto is booming, but should you invest? • How are young Canadians dealing with soaring rents? • Inflation is squeezing our finances. What can we do about it? • Is a hot housing market squeezing Canadians out of their small towns?
- ✔️ The housing file: How bad is housing affordability? Even a crash won't help • Sell the family home to lock in profit and then rent? Better not • Why young adults can't afford houses: Hard work got you more in the past than it does now • Five reasons you should not buy a house till you're at least 30 • Now more than ever, owning a house is not a retirement plan
- 📈 Investing: The 2022 ETF buyer's guide: Best Canadian equity funds • The 2022 Globe and Mail digital broker ranking: Does the zero-commission revolution flip the script on who's best? • With bonds sinking, conservative investors are waking up to risks they never saw coming • A five-step plan for dealing with the sad fact that almost every investment is falling lately • The best financial advice in advance of retirement? Work on your marriage • One-year GICs are the best deal in town for safety seekers • What to do if the financial plan you paid thousands for disappoints
- 💰 Your money: Are you prepared for the pandemic wealth boom to blow up in our faces? • This hard-working 24-year-old is nailing it financially. But where's the happiness? • Who should and shouldn't worry about the wave of rate increases this year, and what every stressed-out borrower should do right now • Don't make this potentially costly assumption about the CPP Survivor's pension
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob Carrick