Weekend Reading – Bank stocks, boosting income, keeping things simple and more
Welcome to my latest Weekend Reading edition…it’s been a busy couple of weeks!
Hard to believe December is now here – which is why we need to keep the pedal down on these 2017 financial goals.
A reader and fan of this site shared his simple personal finance rules of thumb.
Thanks to a reader question I answered this: should I transfer stocks into my TFSA? As always, the answer is, it depends!
Last but not least – this is our housing dilemma, part 2.
Those were the articles on my site for the last two weeks. I hope you take time to check them out and comment back if you haven’t already done so. (I read every comment.)
Time to get my act together and start some holiday shopping this weekend. What about you? Are you already done?
Enjoy the rest of these reads this weekend and see you here next week.
StockTrades highlights some of their favourite Canadian bank stocks. I share a few as well, given I believe some Canadian dividend stock selections can be made easy here.
Interesting to read this MoneySense article about how to boost your retirement income. Basically, design your portfolio for variable percentage withdrawals (VPW). This is not a new concept just a spin on an established approach. The essence of VPW? Each year, the withdrawal is determined by a factor related to the current portfolio balance at time of withdrawal. Markets climbing and portfolio great? Take out more money. Markets falling and portfolio looking bleak? Consider taking out less money. Basically, you continually adapt to your time horizon, asset allocation and market conditions. It aims to deplete your portfolio around age 100. There is an extensive discussion about this on MMM forum – that is – Mr. Money Mustache forum.
This self-taught investor might be a better investor than Warren Buffett.
Here are three ways to get international diversification according to Boomer and Echo. While you can get this with Exchange Traded Funds (ETFs) like he suggested you can also get this via buying (and holding) many blue-chip stocks – that have assets and revenues from many countries around the world. To his point though I also own U.S.-listed ETFs in my RRSP.
How To Save Money shared some holiday spending tips – without being a Grinch.
Some interesting data from this new report by BDO Canada. Using the results (provided by almost 1000 participants) the report yielded the following highlights:
- Preparedness – Business owners plan more for retirement than non-business owners but feel less on track (my comment: seems appropriate).
- Work in retirement – Almost one-third of business owners plan to work part-time after retirement — compared to 12% of the general population.
- On succession planning – More than one in three business owners in our study plans to retire in the next five years. Without the right succession planning, these businesses are at risk of adversely affecting the owners, their families, employees and the wider Canadian economy (my comment: that’s a big percentage).
- On family – Financial support for children was more common among the business owners we surveyed than among non-business owners.
Million Dollar Journey reminded us that Google Finance is shutting down, and provided some alternatives. I like (and have always used) Yahoo Finance myself.
Money We Have suggested to keep things simple. Agreed. Although I’m not against minimalism or shopping bans or anything else people want to do to save money (as they live their lives); just pick a system and stick with it. Most importantly, live and enjoy every day. Life is short.
Rob Carrick agrees that target benefit pension plans are the federal Finance Minister’s solution to an ugly problem. “In the private sector, the trend is for companies with DB plans to close them to new employees and instead enroll them in DC plans. DB plans are much more expensive to run and some companies offering them want out.” A far bigger reason they want out? The investment and therefore financial risk for a defined benefit (DB) pension plan is on the employer not the employee. What employer in their right mind would assume that today??
My fans at the Financial Planning Standards Council (FPSC) sent me this link – some new content from the Financial Planning for Canadians website. Recent research on financial blind spots for Canadians revealed that some Canadians don’t deal with their finances because they are too overwhelming. This site helps folks break down the elephant into bite-sized goals in order to make personal finance less daunting.
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