Weekend Reading – $64 million pension, COVID-19 budget impacts, 5 types of investors and more #moneystuff
Welcome to my latest Weekend Reading edition where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
Last weekend in Ottawa, it was snowing.
This weekend, while overcast weather today, it’s much nicer out all things considered.
Here is a view from our terrace now that garden centres are open and we have some plants. Looks good, no?? (There is a cold beer behind the first chair you see – that is mine – do not dare touch it!)
Well folks, nobody said investing is always easy.
After I reported this recent monthly dividend income update I learned I had another dividend cut in my portfolio. H&R REIT (one of Canada’s largest fully internalized real estate investment trusts with total assets of approximately $13.4 billion as at March 31, 2020) cut their dividend by 50%.
That’s going to make another (small) dent in my income portfolio but thankfully that cut can be offset by recent dividend increases in my portfolio, such as Algonquin Power, Johnson & Johnson and Procter & Gamble.
Take the good with the bad but as I always say on this site – need to stick to the plan.
Year to date my Canadian stock portfolio is down almost 20% fueled by steep declines in the oil and gas sector, a struggling life insurance industry, and real estate investment trusts (REITs) that remain heavily battered. With all these sectors struggling though, I remain committed to my plan:
- investing in a basket of Canadian dividend paying stocks, along with
- U.S. ETFs and stocks inside predominantly my RRSP.
I pretty much DRIP every stock I can to earn more shares commission-free every month and quarter. At last count, I believe across my entire portfolio I’m reinvesting 596 shares each year.
Will more TSX stocks cut dividends over time?
But I’m confident many of these companies will survive and eventually thrive again. It’s just going to be a long road back…and dividend cuts are responsible for management to do to get back to where they were.
How is your portfolio doing? Down for the year like me? How are you holding up?
All the best this long weekend friends and I hope you get some downtime to enjoy it. See you next week!
A quick reminder about this giveaway below – the winner will be announced soon!
Ben Carlson shared 5 types of investors in this market. Which one are you?
Fans of this site Stocktrades.ca continues to keep their list of TSX stocks that have cut their dividends during COVID-19 updated here. I own three in this list, hopefully not too many more to follow but you never know. These times are totally unprecedented.
A solid list of reads in Robb Engen’s weekend reading list is over here. Robb shared a few of his big money mistakes. We’ve all made a few for sure…
Hard to fathom this amount of money but it’s apparently true – the outgoing AT&T CEO is retiring with a pension worth about $64 million. I would have no idea how to spend $274,000 USD per month, for life.
Interesting to read how folks are dealing with COVID-19, including impacts to the “FIRE” (Financial Independence, Retire Early) crowd. Millennial Revolution profiled one of those FIRE-seekers, Clover from SimplyCloverLiving, a flight attendant who is in the beginning part of her FIRE journey.
Some wisdom in her answers about her journey:
“Strangely enough, the lessons and experiences I have learned since my divorce 6 years ago also prepared me for this, because it’s usually in crisis that we deeply reflect on the inner workings of our lives and adjust accordingly. When we completely overhaul our lives and look back at this time, it MIGHT just as well be a blessing in disguise.”
Fans of this site will know I don’t subscribe to the FIRE-journey per se but I am a huge fan of Financial Independence (FI) and my wife and I are actively striving for it. We figure once our debt is gone in ~5 years we will be largely financially independent.
On my site recently, I provided an overview about U.S. Dividend Aristocrats and why I own a few.
These real estate investors feel like ‘prisoners of their property’ given they own $763,000 on five mortgages. I would pass out if that was me from the anxiety and debt-stress…
Incredible stuff by Questrade recently. Deemed Canada’s leading online brokerage – I read they donated 1 Million Meals to its long-standing charitable partner, Food Banks Canada to help its neighbours in need in communities across the country. Great stuff.
Partnerships and deals…
Speaking of Questrade, I’ve been very fortunate that many major financial institutions (like Questrade) want to partner with yours truly thanks to my shared passion for personal finance and investing.
Here are just some of the great offers you can take advantage of on my Deals page:
- You can invest with Canada’s leading online brokerage – Questrade – and buy your ETFs commission-free with them here.
- You can use my promo codes when you invest with BMO to save hundreds of dollars right away!
- You can get $50,000 managed free with ModernAdvisor.
- As a My Own Advisor reader you get full-access, for FREE, to all of 5i’s research reports, all the model portfolios, top companies and best ETFs to own.
- Last year we earned over $600 in cash back money using our favourite credit card. I continue to keep it in my wallet and I use it every week.
Reader question of the week (adapted slightly for the site):
I recently stumbled upon your website and found it very helpful, especially for a newbie investor like e…thank you so much for your lessons learned and successes!
I’m in the process of opening a self-directed RRSP and TFSA and would like to know what you think is the best?
I look forward to hearing from you!
Thanks for your questions folks. Keep them coming as I try and answer as many as I can…
It takes time to research the “best of” for anything so I’ll point you to MoneySense who highlighted who they believe are the best online brokerages in Canada right now.
Here is how I got started for some tips and pointers:
If I was just starting out, as in today, I would certainly lean on owning some low-cost ETFs including some simple all-in-one ETFs and buying them commission-free (with Questrade).
That said, BMO InvestorLine (I have a partnership with them), TD Direct Investing and RBC Direct Investing continue to float to or very near the top of any “best of” brokerages list year after year. I would definitely learn more about offerings from those companies to help you make a solid decision.