Science and Engineering PhDs: A Canadian Portrait

A recent Stats Canada survey found that:

for every woman who held a science or engineering doctorate in Canada in 2001, there were four men.

Not that surprising to me, as a female graduate student in the Faculty of Engineering. Women are still highly under-represented in science and engineering graduate studies.

Also, for each age group, earnings of female science and engineering PhDs were significantly lower than those of their male counterparts. For every dollar earned by a male doctorate holder, female doctorates earned 77 cents. In contrast, a female in the general labour force earned 71 cents for every dollar earned by a male.

Not great, but at least it's better than the general labour force! Slowly but surely I think women are starting to take advantage of opportunities for higher education in technical fields. Don't be scared girls!

On average, a scientist or engineer with a PhD employed on a full-time basis earned $70,000, nearly twice the average of $36,000 for Canada’s paid full-time workers in 2000.

A different perspective

Most of what I've read about the "credit crunch" in the US has described the process as basically an unfortunate incident that took the market by surprise. While I have my own feelings that greed and speculation played a large role, this is the first article I've come across that describes the intentions behind the major players' actions.

It was suprising to read at first, since I guess I am a bit naive in my thinking of the markets as cold, soulless arenas where financial transactions take place without malicious forethought. But this is the real world. People are out to make money. Hedge fund managers are trying to "earn" their million dollar bonuses.

every financial crisis must have villains: a cabal of cranky, omniscient, uncaring old men pushing buttons that drive stocks and home values down, ruin families' retirement plans and make kids cry

How low can it go?

I read a great article today, describing French president Nicolas Sarkozy's reaction to the falling value of the US dollar. He says that despite the US asserting the importance of a strong currency, they have not taken steps to prevent the dollar's value from sliding further (ie. see recent interest rate cuts). This presents the idea that perhaps the US is allowing the dollar to fall to boost its exports to try combat some of the fallout from the credit crunch.

He said the U.S. should “denounce the abuses and excesses of a financial capitalism that sets too great a store on speculation ... [and] commit fully to the establishment of the necessary rules and safeguards. The America I love is the one that encourages entrepreneurs, not speculators.”

Well said.

And the dominos start to fall

The US financial crisis seems to be gaining speed as CEO of Merrill Lynch quits after the largest quarterly loss in company's 93 year history - $2.24 billion. How long can the US economy avoid a recession, or another stock market crash, with companies posting such incredible losses? How is it that optimism still abounds? The longer the markets stay defy rational behaviour, the greater the potential losses may be.

"Real financial freedom is about owning your life"

A great article describing the relatively new phenomenon of running a personal "deficit" budget by relying on the abundant debt now available to Canadians. I love these articles that highlight how we have lost touch with the basic principles of spending less than we earn (saving) and living within our means. The end of the article sums up what this whole blog is about:

Financial freedom isn't about having everything you want. It can't be. In a world of nearly infinite shrewdly marketed consumer choices, most people must eventually face that there are more things to want than there is money to pay for them.

Real financial freedom is about owning your life - your choices, your money, your time, your independence - and not owing it to someone else.

Phoenix anyone?

Now that real estate has become prohibitively expensive in Calgary, Americans are coming in touting the "deals" that can be found in places like Phoenix. Just this morning on CJAY 92 Gerry Forbes was talking to a real estate agent in Arizona. He mentioned that he, his brother and some of his friends had recently purchased property near Scottsdale.

Okay, so they were bragging about the low financing rates you can get in the States ($1500 monthly payment!) and the high Canadian dollar making property very cheap (get in for $150,000!). What really bothers me is the claims that in Phoenix real estate has "nowhere to go but up" since they've "hit the bottom!". That seems like a dangerous claim to make right now....

P.S. I'd be very wary of a site designed by a company that does "Internet Marketing for Real Estate Professionals" that can't get the link to their own site right.

Houses are not just for living in anymore

A disturbing trend has emerged over the last few years of the real estate boom - the view of a house as an investment instead of as a "home". We are seeing this more and more as property values have skyrocketed in Calgary, that people are assuming they will always make money on their home. An interesting article mentions the reaction the previous generation would have to this phenomenon:

Roger admits his parents probably wouldn't recognize the anxiety he's feeling. "They bought a home thinking they were going to live there for 30 years and pay off the mortgage," he says. "It wasn't 'We'll live there for five years and pocket some money.' It wasn't an investment game for them." Then again, they couldn't imagine living in a $750,000 home, either. "We've kind of oversold ourselves on the need for our homes to be investments," he says reflectively.

Calgary + increased royalties = recession?

It appears that some major North American money managers are concerned that hiking oil royalties may cause another crash in Alberta. According to a story in the Financial Post, some of the largest Canadian and U.S. investors in the Alberta energy industry have "growing anxiety about measures that many are warning will send Canada's most prosperous province into recession". What does that mean for Calgary?

Is Calgary next?

Some disturbing real estate statistics are starting to come out of the US housing meltdown. In particular, southern California is one of the hardest hit areas. The combination of astronomical prices and speculative housing purchases (i.e. "flip this house" phenomenon) has sent house sales plummeting and foreclosures soaring. With the royalty debate currently raging, could Calgary be next?

Everyone can save

This recent MSN Finance story gives tips on how to save... even when you're broke! Even if you don't have a lot of disposable income you can stretch the money you have.

In upcoming posts I will discuss how I managed to save money enough money while going to university to buy a car and a condo (in one of the craziest housing markets in Canada!). My parents taught me some great lessons by being frugal and stretching every dollar. More to come.

Retiring Rich

Despite some widely held beliefs, retiring rich is within the grasp of most Canadians. Deciding what "rich" means for you depends on the lifestyle you desire. However, if you make some sacrifices and aim for a modest living, by being a sensible saver and investor you too can make it happen.

The CNN Money story 13 Retirement Myths dispels many of the "truths" people accept that limit them from reaching financial freedom. While the article is written for Americans, Canadians can also benefit from the lessons.

An inspiring story

Myself being the child of hardworking immigrant parents, I find this story especially touching.
Lessons from the Great Depression

Helpful websites

One of my favorite investment websites is Sympatico MSN Finance. I find that they provide great advice to Canadians about a wide variety of topics, including investing, saving, mortgages, retirement and taxes. I also take advantage of their online portfolio tracker to monitor the performance of my own investments. It's really easy to use and fast to set up.

I also like Canadian Business online. While they do have quite a bit of focus on small business & entrepreneurs, there is also a lot of good information about managing your money. Some of their discussion boards can be very useful as well. They also have a portfolio tracker, but I haven't tried it yet.

Welcome

This website is a place to discuss current financial issues affecting Canadians and practical strategies to protect financial wellness. The concept of financial wellness is not the same as "getting rich" or amassing a lot of material possessions. Instead, the focus of this blog is on ways we can all save money, reduce and eliminate debt and make smart financial choices. The goal is to attain financial security and independence.