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4 days ago
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Posthaste: U.S.-Canada trade war getting in the way of RESP contributions
The Canada-United States trade war is affecting anxious Canadian parents' ability to save for their children's education, according to a new study by registered education savings plan (RESP) provider Embark Student Corp. Almost two-thirds of parents are concerned about trade tensions and nearly half said it has impacted their ability to save for their child's education, according to the survey of 1,000 parents with children under the age of five. And 60 per cent said it has changed how they approach savings and 55 per cent said it has impacted their investment strategies. These tariff anxieties are only adding to the mounting challenges facing new parents today, including a lack of sleep and the rising cost of education. Almost 80 per cent of parents said they are regularly woken up by their children, with 41 per cent indicating they are getting six or fewer hours of sleep per night and 37 per cent admitted to making financial decisions they regretted while being sleep-deprived. 'This survey shows that new parents are facing a perfect storm: a lack of sleep, everyday challenges of raising young children, rising costs, and now, trade tensions,' Andrew Lo, chief executive of Embark, said in a press release. The most common reason parents gave for not opening an RESP was not having enough money, followed by fear of their financial situation changing and worries about having to make regular contributions. Rising education costs have increased the challenge. Children born in 2024 are projected to pay 36 per cent more compared to today, according to Embark's estimates. However, 82 per cent still consider their child's education a top priority, ranking higher than the 77 per cent who said paying down debt and the 72 per cent who said saving for retirement were a top priority. A majority of the parents surveyed spend a lot of time thinking about how they'll pay for post-secondary education and wish they had more knowledge about saving and investing for it. Lo recommended shifting from a 'saving is impossible' to an 'every little bit counts' mindset to navigate economic uncertainty. 'It's easy to get discouraged by market volatility, but even contributing a little each month to your child's RESP can make a big difference over time,' he said. 'Government grants alone can match up to 20 per cent of your RESP contributions, delivering immediate value before factoring in compound growth and investment gains.' But the outlook is gloomy for many Canadian parents, with 67 per cent believing it's difficult to balance their family's current needs with their long-term financial goals and 21 per cent who think Canada-U.S. trade relations have permanently changed for the worse. to get Posthaste delivered straight to your U.S. economy shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially reported. Gross domestic product decreased at a 0.2 per cent annualized pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday. That compared with an initially reported 0.3 per cent decline. The economy's primary growth engine — consumer spending — advanced 1.2 per cent, down from an initial estimate of 1.8 per cent and the weakest pace in almost two years. Meantime, net exports subtracted nearly five percentage points from the GDP calculation, slightly more than the first projection and the largest on record. The slight upward revision in GDP reflected stronger business investment and a greater accumulation of inventories. Federal government spending wasn't as much of a drag as originally reported. — Bloomberg Today's Data: Canada real GDP for the first quarter, monthly real GDP for March, Ottawa's fiscal monitor for March, United States personal income and consumption for April, advance economic indicators report for April and University of Michigan consumer sentiment index for May Earnings: Lowe's Cos. Inc., Laurentian Bank of Canada, Canopy Growth Corp. Trump's move to block foreign students from Harvard sends shockwaves within Canadian circles David Rosenberg: Latest labour data shows Canadians are begging the Bank of Canada for renewed rate relief Noah Solomon: You can't always get what you want — the tariff rendition How spousal RRSPs can reduce taxes without getting you in trouble Summer often ushers in a more carefree financial attitude, but with lingering higher interest rates and the current geopolitical climate affecting household budgets, funds for summer fun might be limited, especially when also dealing with debt. When you are feeling financial strain, typical trips involving travel, lodging, and daily expenses might seem unrealistic. However, with careful planning and a focus on budget-friendly choices, a memorable summer without overspending is possible, writes Mary Castillo. Find out more. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Noella Ovid with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ How Canada and Mexico could grow trade amid U.S. tariff fallout 'Buy Canadian' boosts beauty business. Will tariffs end up reversing that?
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27-05-2025
- Business
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Posthaste: Burning your mortgage is going the way of rotary phones and station wagons
The days of burning your mortgage as a rite of passage into your golden years appear to be slipping into the past along with rotary phones and station wagons. A new survey by real estate company Royal LePage suggests that millennials and gen Z are not the only generations struggling with housing affordability in Canada — seniors are carrying the burden well into retirement. Almost a third of Canadians who are planning to retire in the next two years will continue to make mortgage payments on their primary residence into retirement, the survey said. That's twice as many seniors carrying mortgage debt as a decade ago, and in 1999 the share was just eight per cent. Home prices in Canada soared to $827,100 in 2023 from $120,200 in 1990, according to the Canadian Real Estate Association, and these gains have been a 'double-edged sword' for older Canadians, Royal LePage chief executive Phil Soper said. 'On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents,' he said. It's a trend that will likely continue as first-time homebuyers increasingly enter the housing market later in life. A Royal LePage study in 2023 said 43 per cent of first-time homebuyers were aged 35 and older, up from 33 per cent just two years earlier. In the pricey Ontario real estate market, the median age of a first-time homebuyer hit 40 in 2024, up from 36 a decade earlier, which Teranet said is 'a testament to the likely effects of the affordability challenges in the Ontario housing market.' Yet Royal LePage also said that a surprising number of older Canadians are not willing to downsize in retirement — nearly half, 47 per cent. Seniors in Manitoba and Saskatchewan, according to Royal LePage brokers, are more inclined to downsize, while more retirees in Quebec and Ontario opt to stay in their own homes. 'The benefits of entering retirement as a homeowner with a paid-off mortgage are clear: more disposable income, insulation from interest rate changes, and even the emotional security that comes from knowing you'll always have a place to live,' Soper said. 'In the era of rotary phones and station wagons, burning your mortgage was the economic finish line. Today's retiree reality is much more nuanced.' to get Posthaste delivered straight to your manufacturing isn't the American dream. President Donald Trump has made it clear he wants to bring factory jobs back to the United States, but this chart from TD Economics suggests the American people might be a bit more ambivalent. Most agree that there should be more people working in domestic manufacturing, but far fewer think it should be them. Trump might have a harder time than he thought convincing Americans that they need to pay higher prices to win back factory jobs. Today's Data: United States durable goods orders, Conference Board consumer confidence, S&P CoreLogic Case-Shiller home price index Earnings: Bank of Nova Scotia, Autozone Inc. How Trump's 'big beautiful bill' could become a big headache for corporate Canada and investors Many investors remain unaware of the scale of the unfolding bond crisis What you need to know about Canadian Tire, the retail giant that bought Hudson's Bay brands Canadian household wealth surged to a new collective high of $17.49 trillion at the end of 2024, and on average Canadians saw their net worth climb 5.77 per cent to reach $1,026,205, fuelled by strong financial asset gains. The Financial Post's Serah Louis breaks down the state of household wealth in Canada — and looks at the uncertainty that lies ahead. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ 'The fear is real,' says TD, predicting 100,000 jobs will be lost in looming recession Canada home prices are heading into correction territory
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12-05-2025
- Business
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Posthaste: You might not have heard of this recession indicator — but it's getting louder
Here's a recession warning you might not have heard of — and it's getting louder. Oil prices have plunged this year by almost 21 per cent while gold has gained about 26 per cent, widening the gap between the two to almost 50 per cent. 'Rapidly rising gold and plunging oil aren't good signs for the global economy and this year to May 5 is among the most extreme examples,' writes Mike McGlone, senior commodity strategist for Bloomberg Intelligence. 'A global reset signalled by gold's outperformance appears to be happening with implications for deflation that could be as steep as the inflation of the past few years.' The disparity is the fourth biggest in the years between 1925 and 2025, he said, and the closest parallels are 1934 and 2007, the years preceding the Great Depression and the Global Financial Crisis. In 1933, there was a 50 per cent gap between gold and oil, and in 2008 it widened to 60 per cent. The 47 per cent gap so far this year has already overtaken that seen during the pandemic in 2020, according to Bloomberg data. Oil prices were up today and gold was down after the United States and China agreed to reduce tariffs for three months, easing trade tensions. McGlone expects the trend, which he says existed before the Trump's election and tariffs, to deepen, predicting that oil will fall near US$40 a barrel and gold will rise to US$4,000. 'A lower U.S. stock market may be a top force to get there,' he said. He's not alone in his prediction. In recent weeks Goldman Sachs, JPMorgan and Bank of America have all raised their gold forecasts to near or at US$4,000. Gold has a low correlation to equities, bonds and commodities making it an effective hedge, particularly when these traditional assets are falling together as they have been recently. Central banks have increased their gold purchases about fivefold since 2022, and over the past six months, bullion held by the People's Bank of China rose by close to 1 million ounces or about 30 tons, reports Bloomberg. Investors are also piling in. A recent Gallup poll showed gold has overtaken stocks as the second most popular long-term investment among Americans. Real estate is the top choice, but the public preference for gold rose five percentage points to 23 per cent, overtaking equities which fell six points to 16 per cent. Gold has gone from being just a safe haven to a strategic asset in investors' portfolios, say analysts at FTSE Russell, who recommend investors hold 60 per cent equities, 20 per cent bonds and 20 per cent gold. Since 2020, the 60/20/20 portfolio has outperformed the traditional 60/40 holding, they said. 'It is no longer merely a defensive store of value, but a dynamic, strategic tool for navigating complexity in the multi-asset space,' said FTSE Russell analysts Sayad Reteos Baronyan and Alex Nae. to get Posthaste delivered straight to your unemployment rate rose in April to 6.9 per cent, a level last seen in November and this highest since January 2017 outside of the pandemic. This is the third month in a row where jobs have either flatlined or fallen, putting the average pace of job gains at -8,000 over the past three months. April's data points the blame at trade tensions. The largest drop in employment was manufacturing which lost 31,000 jobs and wholesale and retail trade, down 27,000. 'Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle,' said Ali Jaffery, an economist with CIBC Capital Markets. Earnings: Hudbay Minerals Inc., Finning International Inc., Denison Mines Corp., Constellation Software Inc. Canada's largest natural gas producer just keeps getting larger When not to trust your mortgage lender How can I ensure a neighbour with a $10 million estate is not taken advantage of? Over-contributing to an RRSP or TFSA can cost you and the longer the money remains in your account the more you pay. Tax expert Jamie Golombek highlights the case of a taxpayer who ultimately removed her TFSA over-contribution, but apparently not fast enough for the CRA. Read on. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Just when you thought Toronto's condo market couldn't get any worse … High down payments keep Canadians out of homeownership Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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19-02-2025
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Posthaste: How many skipped vacations does it take for a down payment?
Following a long weekend when much of Canada was snowed in, many might be looking for a last-minute trip to a sunny destination. Such a trip might be appealing, but it can severely set you back when it comes to financial goals, especially for those looking to save for a down payment on a home. But just how much of that travel would Canadians need to be skipping out on to afford that first home? It could take more than a decade of skipping vacations to afford a down payment in many parts of the country, Zoocasa Inc. calculated using 2024 data that shows Canadians spend $4,241 every year on an annual vacation. For example, in order to afford the average down payment of $103,440 in Greater Vancouver, the average Canadian would need to skip 24 years' worth of vacations, while it would take 19 years in both Toronto and Fraser Valley, B.C. Overall, it would take more than 10 years in nine regions across the country, including Ottawa (10 years), Hamilton (14 years) and Victoria (17 years). 'While skipping nearly a decade of travel may seem overwhelming, there are ways to accelerate homeownership without completely sacrificing lifestyle,' the report said. 'If five years of vacation savings can cover half a down payment, pairing this with strategies like house hacking, investing or purchasing a more affordable starter home could fast-track your journey while allowing occasional getaways.' The report also said there are some other strategies that could cut down on the timeline, such as looking at the condo market or waiting for a period of high inventory. Canadians could also consider a more affordable market. There are six areas where it would take a mere four years of avoiding sunny destinations to afford a down payment, including Regina, Thunder Bay, Ont., Saint John, N.B., and the entirety of Newfoundland and Labrador. For those who don't like the idea of skipping vacations, Zoocasa suggests staycations or working abroad can help cut down on the homeownership timeline without killing the travel bug. 'Overall, homeownership and travel don't have to be an either-or decision,' the report said. 'With the right financial plan, you can have both home keys and passport stamps in your future.' The tariff threats from U.S. President Donald Trump keep coming. Today at noon ET, Financial Post reporters Gabriel Friedman and Serah Louis will be online to answer your questions about the latest developments and how they affect Canada during a live Q&A session. to receive a reminder ahead of the event with a link to the chat. to get Posthaste delivered straight to your inbox. Canada's inflation rate for January ticked back up to 1.9 per cent, as a 5.3 per cent increase in energy costs drove the slight month-by-month increase. Gas prices in the month climbed 8.6 per cent year-over-year, while natural gas was up 4.8 per cent. This marks a slight increase from the 1.8 per cent inflation rate seen in December, but still within the Bank of Canada's target rate of two per cent. Read more here. 2 p.m.: United States Federal Reserve releases minutes from its latest rate decision Today's Data: U.S. housing starts and building permits for January Earnings: HSBC Holdings plc, Progressive Corp., Rio Tinto plc, Glencore plc, Manulife Financial Corp., Garmin Ltd., Gildan Activewear Inc., Lundin Mining Corp., Etsy Inc., The Cheesecake Factory Inc. Amidst the countdown to U.S. tariffs, steel producers decry 'dumped steel' in Canada Canada's inflation rate ticks back up to 1.9% on spike in gas prices Bank of Canada could skip March rate cut: Economists on the latest inflation numbers West-East pipeline is key to securing Canada's energy future What does Navy SEAL Team 6 and investing have in common? Investing pro Martin Pelletier talks about how trust can be a powerful force in maximizing a winning outcome. Find out more Calling Canadian families with younger kids or teens: Whether it's budgeting, spending, investing, paying off debt, or just paying the bills, does your family have any financial resolutions for the coming year? Let us know at wealth@ Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ High home prices are sapping Canada's dismal productivity Young Canadians are losing homeownership hope
