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Weekend Reading – Borrowing to invest, rising house prices and more

Welcome to another Weekend Reading edition!  This week I provided a review about this book for 20-somethings and I shared my investing mistake to buy and hold TransAlta.  I’ll hold the stock for now but for how long, who knows…

Oh, and just a reminder, you have a few more hours to enter this giveaway on my site.

Enjoy the articles that follow and have a great weekend.

A Financial Post article said there are times to borrow to invest, like now.  I agree but ONLY if you have a healthy income surplus every month and very little debt.  Otherwise, I feel this is a form of gambling since so many factors associated with leveraged investing are out of your control.

I read house prices will rise another 5% this year.  I can’t imagine that will occur everywhere.   Who on earth is buying all these homes at these prices anyhow?

Larry MacDonald profiled this investor who invests in companies people hate.

Dan Bortolotti encourages the bond bears to admit they were wrong.

Investing guru Rick Ferri said investing philosophy trumps all:  “Have a sound investment philosophy before trying to create an investment strategy. Your core beliefs about investing should drive strategy and also keep you disciplined in difficult markets.”  I recall I wrote something similar here.

Dividend Mantra saved over 70% of his income last month.  That’s crazy good.

A Wealth of Common Sense said there is no perfect portfolio, only in hindsight there is.

Jason Heath provided some advice to this couple regarding investment fees.

Here is an excellent article about LIFs and RRIFs from Jim Yih.

Krystal Yee asked how much you spend on groceries.

Big Cajun Man wrote about a credit card transfer trick, namely paying it off.

How To Save Money had a monster post about price matching policies at various Canadian retailers.

Boomer & Echo looked at the RRSP vs. Mortgage paydown debate.

Michael James on Money wrote about target-benefit pension plans, an interesting concept that’s largely a hybrid between defined benefit and defined contribution pension plans.

Filed in: Weekend Reading

14 Responses to "Weekend Reading – Borrowing to invest, rising house prices and more"

  1. Mark,

    Thanks for sharing! Really appreciate it.

    Borrowing to invest? I know margin works for some, but I like to do it the old-fashioned way. Nobody ever went bankrupt not owing anyone anything. My money is mine alone. :)

    Have a great weekend!

    Best wishes.

  2. Borrowing to invest is alright in certain market conditions but with things getting frothy I wouldnt dare use my leverage. I would rather wait for average dividend yields to raise above margin rates before I think about it.

  3. Borrowing to invest? It’s horrible. It’s better if you invest using the money that you work for. But I known some people still doing it. And they find it hard to pay their debts.

  4. I was wondering when we’d start seeing more articles about the wonders of leverage. We always see them after the market has run up. Of course, the right time for leverage was back in 2009, not that I could know it at the time. Thanks for the mention.

    • Mark says:

      You’re right Michael, and we’re seeing a few (more articles) now. Potentially a nice blogpost topic. Personally, I won’t borrow to invest until my mortgage debt is zero or very close to it. I just don’t see the point of taking on more debt when I already have $200k of it.

  5. Thanks for the inclusion, glad you saw the subtle mention of the key to my trick, have a great weekend.

  6. Inderpreet Kang says:

    Mark,

    I would love to know how to travel for less. For people who live up north, there are not many deal options. The good thing is that new International airport terminal opened recently with direct flights to Las Vegas and Mexico

    Inderpreet

  7. Robb says:

    Thanks for the mention, Mark. I’m with you on the use of leverage – too much debt right now, but something I’d consider given the right circumstances.

    • Mark says:

      Yeah, the Smith Manoeuvre and other financial tools are not for me right now. If and when I have a low debt load and interest rates are low, along with many other assets built up outside my home, I will consider it.

  8. Thanks for the good reads this week. Have a great weekend mate!

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