Weekend Reading – Big banks make big cash and more…

I had to chuckle when I read a recent Globe and Mail article that said TD and CIBC had to “fight through tough capital markets” to beat market expectations.  It appears “the fight” has paid off, handsomely this quarter, to the tune of $1.57-billion for TD and almost $800-million for CIBC.   Where can I learn how to fight like that for SO MUCH cash?!

This past week has been hectic at work and around home.  I’m ready for the weekend, big time.  I’m sure you are too.  

Next week, I’ll be posting Part 3, the final installment of my comprehensive review of Millionaire Teacher and I hope to share my November 2011 Dividend Income Update with you as well. 

I’ve also been thinking a great deal about our debt situation.  It doesn’t consume me but I think about it enough.   Taking on debt is a normal activity in many regards, but it doesn’t need to be excessive.  ‘Tis the season when I start to think about it more.  Money flying here, money flying there for gifts and dinners with friends.   We have to live, no doubt, but I don’t want to fall into a deep hole I can’t get out of.   Over the next couple of weeks, I’m going to share more on that with you, including some goals we have for 2012.   Those goals are aggressive for 2012 but I’m also looking forward to tackling them.

What about you?  Is debt weighing on your mind this holiday season?

Until that question is explored further, I’ve got a host a great articles to share.  Check ’em out and tell me what you think about them! 

Have a safe, happy and healthy weekend.   Chat more next week!

 

Michael James said past GIC returns are not as good as they appeared.  He’s right!

Mich from Beating The Index said he’s come around and is now in favour of the SKW/MQE merger.   

Today’s Economy Blog wondered if you’re financially prepared for bad health.  “One example: While 53% of Canadians believe that a major health condition would have a “big, perhaps permanent impact” on their personal finances, just 58% of Canadians are preparing or are prepared in case they get sick.”  Those numbers surprised me. 

Dividend Ninja wondered “What Happened to the Income Trusts? Part-2”.  Ninjas’ article was originally published in the September 2011 edition of Canadian MoneySaver.  Well done Ninja!

Mike from Money Smarts Blog debated whether PC Points at Loblaws are worth it.  Personally, after owning a PC MasterCard for years, I would say “yes” the points were good but there are other points/rewards systems that are better than PC Financial.    Check out what I recently signed up for here.

BankNerd gave us another cash back MasterCard to consider.

Preet Banerjee gave us the low-down about interest rate swaps, interest rate swap dealers and comparative borrowing advantages.

Canadian Capitalist questioned why Ally isn’t more popular?   Is it because they are a latecomer to the high-interest savings account party?

Boomer & Echo discussed packaged bank accounts.  My take, these accounts are not for me, the packaging often comes with hefty fees.

SPF discussed the merits of batch cooking.  We do this around our house often.  Great for saving energy and time!

101 Centavos gave us a history lesson in insurance.

The Big Cajun Man warned us….about Cyber Monday!  I guess I didn’t take the warning very well.  I didn’t do anything.  Was I supposed to buy something? 🙂

Dividend Mantra asked:  What Are You Buying?   Me, nothing right now because we very little to invest.  Hopefully, once our LOC is paid off in early 2012 that will change.

The Blunt Bean Counter has an outstanding initiative underway – Bloggers for Charity.  I wonder what the leading bid is so far?  I’ve heard a spot on Canadian Capitalist’s site, the leading bid is in the hundreds of dollars!  Great stuff!

Dividend Guy Blog discussed options and considerations for dividend investing in 2012.  Personally, I’m not changing a thing.  Staying the course by scooping up more holdings that ETFs like XDV and CDZ own. 

Million Dollar Journey reviewed The Worried Boomer by Derek Foster.  Not only does this sound like a good read, you can try and win a free copy of Derek’s book on MDJ’s site!  Hurry,  the contest will end December 3, 2011. 

Congratulations to YoungandThrifty on her 2 year blogiversary!  I look forward to many more years!  Stay in touch often Y&T.

My University Money said money is just a tool.  Absolutely true.  A powerful one at that though.  “The bottom line is that earning and spending a lot of money does not make you financially independent. The only way to ensure you are eventually financially independent is to create multiple streams of income for yourself and treat money as a tool to further your overall financial position.”  Well said.

Dan Bortolotti questioned whether the pros can time the market.  Dan writes: “The problem was that defensive mangers were usually late to the recovery party. As a result, over an entire market cycle most investors are usually better off staying fully invested all the time.”   I agree, stay in, all in.

Jim Yih had a guest post that asked:  Do you need income from your investments?  My answer is absolutely “yes”, since cash flow always counts.

Larry MacDonald wrote about crushing debt before it crushes you.  Larry, seems you and I, and author David Trahair are on the same page.

The Passive Income Earner offered up some interesting metrics for 20 Canadian dividend-paying stocks

Invest It Wisely had a guest post about learning some valuable financial lessons.

Andrew Hallam apologized to readers and would-be buyers of his book, Millionaire Teacher, because it SOLD OUT in Canada through Amazon.  I guess that makes my FREE giveaway, pretty valuable eh?  Great stuff Andrew!

Last but not least, Susan Brunner (one of my mentors in dividend investing) has an article about the industrial stocks she tracks.   Mullen, Progressive Waste Solutions and Russell Metals are three stocks I intend to own when the price is right.  Read more of her great article, here.  

Don’t forget to leave me a comment folks!

 

21 Responses to "Weekend Reading – Big banks make big cash and more…"

  1. Awesome to here that so many people bought Andrew’s book eh? Thanks for the mention as always. I heard a smart guy say one time not to complain about the banks, just own them instead. It makes sense when you see numbers like those!

    Reply
  2. Thanks for including me! Hopefully, paying off that LOC goes to plan!

    As far as holiday-induced debt, I used reward points I accumulated through work to get gifts for my significant other and parents. That worked out ok. However, I did have to purchase a $540 airplane ticket to see family back home in Michigan. That certainly hit hard. But, as you put it, you gotta live! It’s important to put things in perspective.

    Best wishes and have a great weekend.

    Reply
  3. Thanks for mentioning Boomer’s post on packaged bank accounts. Since we budget/forecast for the entire year, we’ve already set aside money for Christmas so I don’t worry about over spending. I finally paid off my wife’s student loan last week, so now we’re just left with a giant mortgage to tackle.

    Reply
  4. @Echo
    Congrats Echo!!! Yay, now we both have giant mortgages to tackle! lol. I just need to convince my boyfriend to start tackling them 🙁 (I guess that’s one good thing about a single earner household eh? You don’t have to convince or persuade anyone lol)

    Thanks MOA for the mention, and I look forward to many more conversations with you!

    I really enjoy the colleaguelity (however you spell that) of our “Canadian PF crew”

    Reply
    1. No worries Y&T!

      @Echo and Y&T,

      Although I hate my fat mortgage, there are just too many investing opportunities out there right now. I’m striving for $6,000 in dividend income by end of 2012. Stay tuned for that investing goal!

      Reply
  5. Do you think that the big banks have too much power in Canada? Are big banks and big government too cosy with each other? Why do Canadians pay the highest mutual fund fees?

    I’m looking forward to your 2012 goals. Debt doesn’t worry me because the only debt I have is mortgage debt, and the rates can double before they start to hurt. Even if they quadruple, I’m skeptical that the Bank of Canada will crush the millions of indebted voters out there. If rates go to 20%, well, then I might have a problem, but so will the government!

    My current approach is to generate more income rather than reduce the currently cheap debt. I need to really get started down this road but I believe it will lead to greater freedom.

    Reply
    1. I think they do Kevin, but I’m not complaining as long as I’m a shareholder. If you can’t beat ’em (the banks), join ’em!

      I hope we accomplish our 2012 goals. They are aggressive. We have mortgage debt, will have a car payment soon (in Feb. 2012) and just finishing off a significant LOC (over $20,000). I will be blogging about the latter, LOC debt reduction soon.

      Our mortgage rates could double before it hurts as well, maybe even triple. If rates go up 20%, I think that would be a good thing though. These low rates are killing savers!

      Thoughts?

      I hear ya, generate more income vs. debt repayment but we feel a balance is required. Put a few hundred per month towards lump sum debt payment and put a few hundred towards TFSA and dividend-paying stocks.

      Thanks for stopping by and your continued support of the blog Kevin! 🙂

      Reply
  6. @My Own Advisor

    I also think that the low interest rates are needlessly punishing savers. If we had a true free market in money, we would not have these low interest rates.

    That said, it’s like a drug addict — sometimes taking him off the drugs too quickly can end up killing him. I fear it would be the same if our interest rates shot up too quickly.

    I paid off my car debt this year, so that was my part for debt repayment. 😛 All that’s left is the house!

    Reply
    1. @IIW,

      I like your analogy of a drug addict and interest rates. A slow withdrawal is required, or a slow increase in rates rather.

      You paid off your car? Wow, great! In fact, my wife and I have to start car payments in another 3 months. We need a new car, both cars are too old and breaking down. I will however, keep my 11-year-old clunker for a few years.

      Reply

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