Do Canadians Really Need $1.7 Million to Retire? + The Gamification of Investing

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The Canadian Investor 46 min 3 speakers 8 chapters transcribed 4 months ago
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What does the latest data reveal about Canadian household wealth?

Unknown 0:01
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Simon Belanger 0:12
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
Unknown 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
Braden Dennis 0:23
This has to be one of the biggest quarters I've seen from this company in quite some time.
Unknown 0:32
Welcome back to the Canadian Investor Podcast. I'm back with Dan Kett. We are back for our regular Monday episode. We have some fun topics here on the slate today. We're going to be talking about Canadian households and how they're faring on, in terms of balance sheet, the... type of assets that Canadians, you and I, on average, have, whether it's financial assets or even real estate. And then we'll go over the BMO yearly retirement survey, amongst other things. You may have seen this headline where they'll ask a group to know how much you think you'll need to retire. And it always makes headlines. So that came out a few months ago, but it'll be interesting just to break that down. Also bring some nuances because the headlines sometimes make things look like they're worse than they actually are.
Unknown 1:20
And then you'll go over Wealthsimple and the X partnership that will essentially allow Well, it's simple brokerage users to click on the symbol on X and go directly into their brokerage and buy a stock.
Braden Dennis 1:38
I don't even think you need to leave the platform from what I've read. Okay.
Unknown 1:41
So that'll be interesting.
Braden Dennis 1:42
Yeah. It's kind of like that segment will be kind of the partnership and then just some overall trends in regards to brokerages.
Unknown 1:51
Okay. No, I think it'll be a fun episode. Just a little bit different than what we do, but I think a fun one. Obviously, the X and Wealthsimple partnership, something we could have talked on the news and earnings, but we had quite a bit on the slate, so we decided to bring that back to Monday. Let's start here with Canadian household balance sheet. So every quarter, Stats Canada releases information about how Canadian households are doing in terms of wealth. The survey I'm going to be referencing is the latest one for Q3 of 2025. I'm assuming Q4 2025 will probably come out soon, but it still gives us, I think, some good indication on how Canadians are doing. So, the total household net worth for Canadians, so the first net worth increased by 2.6% for Canadian households as a whole to 18.4 trillion.
Unknown 2:46
I hadn't looked at this in a while. I was like, oh, wow, it's higher than I thought it was.
Braden Dennis 2:51
I mean, it's still, I guess you could say it's still a net decline on a real basis, I guess, because what is inflation 3% around right now? High twos.
Unknown 3:01
Yeah, exactly. No, I think that's a fair point here. And something that was interesting and something we've been talking about quite a bit on the podcast is the wealth is not evenly distributed. So it is something that we reference. I even talked about the K-shape economy where the top of the K is doing very well and the bottom of the K, which... tends to be much larger than the top of the K is actually not doing all that well. And this report really confirms it. So they actually state in the report that the top 20% of household holds 70% of all financial assets. So if we flip this around, it means the bottom 80% own only 30% of those financial assets. So even though we've seen markets and assets rise quite a bit over the last five years you can definitely just look at this and say okay there's only a small portion of Canadians that have only really that have really benefited from that yeah I mean that's I think that's kind of the case everywhere though isn't it like the yeah top end earners usually own all of the financial assets which is kind of why
Braden Dennis 4:14
I mean, we've discussed this before, why like if you're, you know, you have enough money to invest and save and all that type of stuff, you might not think the situation is as bad as it really is. But when you look at like the kind of lower income earners, stuff like that, how tough it is to, I guess, to survive, let alone invest in financial assets.

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