By Rob Carrick
You may know the name Sean Cooper – he's the guy who paid off his Toronto mortgage in just three years, by age 30. Now, he's a personal finance blogger with some strong views on how his fellow millennials are affording their own homes. He says a lot of young adults expect to get help from their parents, and that this has to stop.
Cooper appeals directly to parents to show their kids some tough love and not provide help with down payments. Still, he does relent a bit at one point and says it may be okay to top up down payments to 20 per cent to help buyers avoid the cost of mortgage insurance. Here's another note to parents about helping their children financially: "The financial support you are offering your adult children is toxic."
Here's yet another take on parental help in home buying: Can your kids actually afford to own a house? Helping someone buy a house he or she cannot afford to carry while saving for retirement and other things is irresponsible.
Want to subscribe to Carrick on Money?
Click here to receive it twice weekly by e-mail.
Rob's top web links
Money tips for new parents
> A couple of good points here. Spend on date night; don't spend too much on baby gear.
They pay people to have a mortgage in these countries
> Negative interest rates in Belgium and Denmark mean some lucky people are being paid to have a mortgage instead of paying interest.
14 books that will change how you look at money
> Think people don't read books much any more? I get asked all the time to recommend personal finance and investing books to readers. Here's a good place to start for anyone wondering about top reads in finance.
I plead guilty – I am a financial illiterate
> A successful author uses his own financial misfortunes to document the money woes of the middle class. Now for a rebuttal, based on the idea that there are steps you can take to ensure you and your family are on secure financial footing.
Why we make bad decisions
> Here's a list of ways we sabotage ourselves when making decisions. Huge relevance for financial matters. In fact, the emerging field of behavioural finance is based on these ideas.
Deciphering mutual fund names
> Most mutual funds are offered in several different series — A, D and F, to name a few. Here's a guide to what these letters mean.
Today's featured investment tool
I'm blown away by the number of questions I'm getting these days about exchange-traded funds, or ETFs. Here's a handy screening tool to help you research ETFs that are right for your needs.
The question: "I am planning to invest $10,000 into Bombardier stock, as I truly believe that the Canadian government will support them to the tune of $1-billion, and I'm also betting that their new aircraft will be selling. Do you think that this would be a wise investment?"
My reply: No. This would be a speculative investment, nothing more. You should be prepared for any outcome, from Ottawa's outright rejection of aidfor Bombardier to a nuanced assistance plan that requires serious concessions from the company.
Do you have a question for me? Send it my way. Questions and answers are edited for length.
Wills lawyer Les Kotzer and I talk about the difference between a will and a power of attorney. You need both, by the way.
Send us an email to let us know what you think of my newsletter.
Want to subscribe? Click here to sign up.