Renters of Canada, it’s time to vent

The economics of fast-rising house prices dictate that more people will rent, and for longer periods of time. Yet renters are one of the most ignored groups in the personal finance world.

We too often treat renters as simply being in a transitional pre-home ownership period. But some of today’s renters may take years to save a down payment, or never get there. Also, as shocking as it may seem to home owners, some people prefer to rent because of the freedom and cost savings.

Our Stress Test personal finance podcast for Gen Z and millennials has devoted some time to renting, but we want to dig deeper. Contact us at rluciw@globeandmail.com if you want your story as a renter heard. We also have a survey for renters – see below. I’ll write about the results later on, and I’ll talk about them with Globe and Mail personal finance editor Roma Luciw in an upcoming Stress Test episode.

Here’s the survey. If you’re not a renter but know someone who is, please forward this e-mail to them.

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Rob’s personal finance reading list

How do you insure a rental car?

The creditcardGenius website as good a job as I’ve seen in outlining the pros and cons of the various insurance options for car rentals.

New thoughts on retirement investing

For ages, there has been a basic rule that you can sustainably withdraw 4 per cent of your retirement savings each year. New thinking has lowered that withdrawal rate to 3.3 per cent. Worth a read if you’re at or looking ahead the life stage where you turn a lifetime’s savings and investing into retirement income.

These online passwords are a hacker’s dream

The Top 20 most commonly used passwords in Canada. I doubt anyone has more online accounts than me, so I totally get your feeling of password fatigue. But 123456 isn’t going to cut it if you want to keep your account safe.

A parking place for your savings

A review of Neo Financial, which offers a savings account paying a very competitive 1.3 per cent. Compare savings rates at other alternative banks here.

Ask Rob

Q: I will be 65 next month and plan to continue working as a full-time employee for most, if not all, of 2022. I am planning to defer Canada Pension Plan retirement benefits and Old Age Security to age 70 and currently qualify for the maximum CPP benefit. Does it make sense to continue contributing to CPP for the post-retirement benefit or should I stop? I have a defined benefit pension plan and am in relatively good financial shape.

A: Alexandra Macqueen, a certified financial planner (CFP) who has co-authored books on retirement planning, recently took a look at just this sort of situation. She found it advantageous for someone who is 65, working and in line to receive maximum CPP benefits to pay into the CPP post-retirement benefit.

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

Canadian ETF Market is a new online resource for investors interested in exchange-traded funds – there’s a screener and lots of educational content. The site is offered by the NEO Exchange, a competitor to the Toronto Stock Exchange.

The Money-Free Zone

Plan your holiday season escapist movie-watching: Vogue’s list of the 73 best romantic comedies.

What I’ve been writing about

• New rules for advisers mean they should be saying a big, fat no to a lot of new investing products
• How worried should recent home buyers be about their mortgage renewal in five years?
• GIC rates are finally on the rise – should you buy now or wait for better?

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: Are your parents giving you money? • Why it’s time to stop shaming the renting lifestyle • Is now the right time to buy a house? • Why are young Canadians leaving the cities they love? • Eating in: How COVID has shifted our food spending • Crisis-proof your finances? • Can you afford to live downtown? • The cost of kids
• ✔️ The housing file: The housing boom is ripping apart the financial fabric of Canada • Shut out: A well-qualified millennial home seeker throws up his hands after losing multiple bidding wars • Big city housing affordability is over – now what? • She sold her Toronto house to retire somewhere cheaper, but it didn’t work • How young adults and the whole country win with a tougher mortgage stress test for home buyers • Can’t afford your house? It’s likely not your fault
• 📈 Investing: Robo-advisers have grown out of the novelty stage. Here’s help in finding one right for you • The 2021 ETF Buyer’s Guide: Best Canadian equity funds • The 2021 Globe and Mail online brokerage ranking: Who’s best for investing … and answering the phone • Are these the stock market returns of a lifetime? • On the cusp of retirement and wondering about an ETF that pushes the limits on aggressiveness
• 💰 Your money: The five most important numbers for checking the health of your personal finances • Today’s freakishly low mortgage rates can’t last. What will pandemic home buyers do when they rise? • There’s a cost in money, isolation and family stress when seniors choose to remain in their own private homes • Taking CPP early can cost you $100,000 and limit your long term options • Fleeing the city for the suburbs? Watch out for higher property taxes, more cars and other costs

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.