Welcome to my latest Weekend Reading edition. I hope you had a good week.
It was great to watch my hometown REDBLACKS play last night – kicking off their pre-season football under a gorgeous sunny summer night.
I’m looking forward to the rest of games; always filled with good times…
I had a busy schedule outside of work this week so I was only able to squeak out this post: May 2017 Dividend Income Update.
I’ve got a few ideas already for next week’s articles but you’ll have to come back to find out which ideas I actually ran with.
Enjoy some of these articles I checked out recently and enjoy your weekend!
Thanks to financial writer Joel Schlesinger for including my input into this Globe and Mail article – Meet, and learn from, the Warren Buffets of Canada.
My friend Million Dollar Journey shared some options to index your portfolio.
Retire Happy updated an older post about avoiding the Old Age Security (OAS) clawback. Some good reminders:
- OAS is paid from general tax revenues and is not a contributory pension plan like Canada Pension Plan (CPP).
- If you have lived in Canada for at least 40 years after the age of 18 you’re likely to get the full pension amount – close to $600 per month now. You’ll likely receive a “partial pension” at the rate of 1/40th of the full OAS amount for each complete year of residence in Canada after age 18. Personally, I think it’s time to overhaul OAS.
- OAS payments are increased, quarterly during the year, as cost of living increases as measured by our Consumer Price Index (CPI).
The folks at Steadyhand identified how investors can prepare for the next market downturn. I’m taking their advice to heart – I’m mentally rehearsing how I’m going to stomach a 10%, 20% or even a 30% portfolio value decline. I fully expect this to happen in the coming year or so. Will it happen? No clue!
Another friend of mine, international, globe-trotting digital nomad Andrew Hallam gave international teachers something to ponder this summer.
I happen to disagree with this financial expert’s advice: “It never hurts to take a profit. If you like a company that you own, where nothing has fundamentally changed with it and you have doubled your money, it would be wise to take some or all of your original capital off of the proverbial table.” No, it can hurt – depending upon the capital gains you’ve incurred. Selling assets also goes beyond tax considerations.
Which leads me to this: if you’re so smart, why aren’t you retired already?
LSM Insurance (affiliate) now provides an extensive list of answers to reader questions – here. A reminder to take a tour to the sidebar on my site if you want a free instant life insurance quote.
This couple makes over $250,000, lives in Toronto, has an impressive net worth of $1.5 million but no master financial plan.