Weekend Reading – Best early retirement blogs in Canada edition
Hello again readers!
Welcome to my latest Weekend Reading – the best early retirement blogs in Canada edition.
In case you missed my last roundup related to retirement and semi-retirement, check out the Become Your Own Advisor edition.
Weekend Reading – Best early retirement blogs in Canada edition
Here is some of my latest content, including posts that have triggered a good amount of discussion on this site:
I had this post about how to invest inside a corporation.
This is how I built my juicy dividend income portfolio – and how you can too!
Although dividend income is good, I have other goals. This is an update on our 2021 financial goals.
Lots of other material and content to get into for this edition…so read on, enjoy and see you in the comments section!
Have a great weekend,
Weekend Reading – Best early retirement blogs in Canada
Headlining this week’s edition…very kind (and honoured) by Hardbaccon.ca to be named one of the best early retirement blogs in Canada.
I will keep doing what I am doing then – thanks for following along and your support!
My friend Robb Engen from Boomer & Echo asked: what’s in your wallet? Robb wrote:
“I don’t carry any loyalty cards in my physical wallet but my Apple Wallet contains the following loyalty cards:
- Air Miles
- PC Optimum
- Priority Pass
- Marriott Bonvoy
To answer his question, I have Aeroplan credit cards, I keep Air Miles and PC Optimum rewards cards on my phone, and I also collect Bonvoy rewards. As GenY Money knows, when it comes to rewards – it’s all about collecting and saving for The Maldives eventually!
GenY Money recapped her 2021 personal finance goals.
There are some “unheard of levels of excess capital” in our Canadian banking system.
Image courtesy of Financial Post.
Of course, companies can do many things to increase shareholder value. They can do mergers and acquisitions, they can pay down debt, they can reinvest that money into the business/grow the business in terms of products and services, they can execute share buybacks but they can also boost dividends.
You can read about all these strategies and why companies may pay a dividend on this dedicated Dividends page here.
Those options listed, I think the most likely scenario for all Big-6 banks sitting on billions and billions in cash, is…..drum roll please….dividend increases. Get your bank stocks now, those increases are coming….
Financial Independence – Retirement
As part of my ongoing commitment to share some financial independence, early retirement or retirement articles from the blogosphere, here are some links!
Speaking of dividend increases, did you know that Old Age Security (OAS) benefits are indexed for inflation, based on consumer price increases, and reviewed and potentially indexed quarterly? Yup.
Read on about all the OAS ins-and-outs here on Cashflows & Portfolios.
Another thanks to Jon Chevreau who highlighted my case study and post on his site – how this millennial couple can realize their financial independence dreams by age 50.
Don’t forget about my dedicated Helpful Sites page that includes FREE retirement and withdraw calculators on demand for your use!
(Rob Carrick from The Globe and Mail picked up on my page in one of his recent Carrick on Money newsletters. Thanks Rob!)
There are also dozens of Retirement stories and essays you can learn from here.
More Weekend Reading…
MoneySense highlighted Questrade as their #1 discount brokerage.
Tanja Hester, a gifted writer, said we need to retire FIRE. There are many reasons in her blogpost, which are aligned with my thinking, but this one stands out:
“I believe that, at its core, the idea of pursuing FIRE or FI or a work optional life, or whatever else you want to call it, is about knowing what “enough” truly means, and stopping there. (It’s why we deride “one more year” syndrome, and talk about cutting expenses, not just earning more.) Whether you’d put it in these terms or not, FIRE is about leaving the rest of the money for others who need it, not hoarding it for yourself.”
I’ve always been a fan of the FI part – as dedicated readers know.
Check why you should strive for FI (Financial Independence) here.
Our Life Financial is killing it with growing her dividend income stream. Well done!
Get Rich Brothers continue to own both income and alternative investments to build their financial independence dreams.
In a discussion on the Twitter machine recently, savvy investor and blogger Early Retirement Now (ERN) suggested your best bet against any inflation is to stay invested in stocks for the long-haul. I have the same plan…
Here is an older article from his site that remains VERY relevant today, as inflation inches higher.
“Hedging against inflation is no easy task. It all depends on the horizon! Over the very long-term, equities are an extremely powerful inflation hedge. Makes sense because over long horizons, corporations have the power to raise prices and raise their corporate profits pretty much exactly in line with inflation. Over shorter horizons, commodities or commodity-linked equity seem like a great inflation hedge. But they both have drawbacks. Commodities have low expected returns and commodity-linked equities tend to have higher volatilities than the broad index.”
Dale Roberts made note of this major TSX milestone.
Save, Invest, Prosper!
As always, check out my Deals page.
Some of these personal promos codes are unique in Canada – you can’t find these codes or deals anywhere else in Canada – to save on investing and more!
My very own personal BMO promo code remains available! Use that BMO code to get hundreds in cash back when you open investment accounts with BMO like your RRSP, TFSA, taxable account and more!
I’ve got a new partnership with EQ Bank – just look at the banner in the margin!
With 5i Research, take a no obligation FREE trial for your ETF and stock research.
With LegalWills.ca use my personal My Own Advisor promo code for 15% off any services – that never expires.
I earn $600 in cash back every single year. Scroll down my Deals page to get the same credit card I use in your wallet.
Thought of the week….
Courtesy of FS Blog:
“You’re entitled to your own opinion if you keep your opinion to yourself. If you decide to say it out loud, then I think you have a responsibility to be open to changing your mind in the face of better logic or stronger data. I think if you’re willing to voice an opinion, you should also be willing to change that opinion.”
— Adam Grant on rethinking your position
Reader question of the week:
Do you have any info on FXM (First Asset Morningstar Canada) ETF? Do you expect this to grow in the long term?
Thanks for your question!
I don’t own this fund, but I do know it’s one of Canada’s leading active ETFs for the last few years. From the CI Global Asset Management fund overview page:
The Fund invests in equity securities of the largest and most liquid Canadian public issuers based upon proprietary research generated by Morningstar, and is designed to provide diversified exposure to Canadian issuers which are considered to be “good value” based on characteristics like low price to earnings and low price to cash flow ratios. The investment strategy of the Fund is to invest in and hold the constituent securities of the Index.
I don’t have it in my Top Canadian ETFs table but I have considered adding it in the past.
These are some of the Top Dividend ETFs to own as well in my opinion.
FXM is more actively managed, and has less holdings under that management than many of the funds I tend to highlight in those Top ETFs posts, but that doesn’t mean FXM might not continue to perform well.
I don’t have too much of an opinion on it, only that the current sector breakdown is quite balanced and that might be part of the positive reason why the fund has done so well, and could continue to do so…
The fund is not as heavily weighted towards financials and energy like many cap-weighted ETFs are, so, maybe a bright spot to consider for future performance!
Image courtesy of FXM from CI Global Asset Management.
Thanks for your question and let me know what you decide!
It’s a quite nice blog.
Peak Spire is a Toronto, Ontario based company that provides Web Development, UI/UX design, App Development services.
All this talk of the Maldives is making me a bit travel jealous. I have never considered it as part of my travel bucket list but now may need to look into it. Lots of great discussion in the comments.
LOL. Maria, you really need to Google some locations there 🙂 With all that future rental income, I say you must go!!
Thanks again for adding GRB to your Weekend Reading—plenty of great articles in this edition.
I have to say, looking at that excess capital from our Canadian banks puts a smile on my face. Once they’re free to do as they please, we should be in store for some bountiful dividend increases. Can’t wait.
Interesting days ahead GRB! All the best Ryan.
Great read once again Mark. I learned a lot from the GenY blogger and have already put Wealthica on a test drive as a result of one of her blog posts.
I’m practically salivating at the thought of bank and insurance company dividend raises! My yield is definitely taking a hit with the run up in stock price with no corresponding adjustments to the dividend – so bring it on! It makes it very tempting to try to open my TD and RY positions before it happens – but what do I sell? (shivering at the thought – LOL!)
Can’t wait for my June 15th dividend payday.
These Big-6 bank raises (that are coming) might be unprecedented. Potentially, 10-15% EACH. We’ll see of course but these are sitting on literally billions and billions in cash James. Shareholders who hold all Big-6 banks, and life insurance companies like SLF, GWO, are likely going to be rewarded big time within 5 months. Just a guess of course.
Always enjoy your Weekend reads, Mark! Congrats on being mentioned on Hard Bacon, you deserve it. It was an honour to be included on Hard Bacon’s best financial independence and early retirement blogs in Canada for 2021. I’m not familiar with that fund from the reader question this week. Enjoy the rest of your weekend!
Thanks very much Graham and nice to have HardBacon recognize the many bloggers that put valuable effort into their sites! 🙂
Congratulations Mark on the nomination of your blog you truly deserve it !!
wow you got me excited now about a possible increase in canadian banks dividends it makes my decision in holding four of them sound i guess 🙂
Thanks Gus. Yes, those Big-6 bank dividend raises are coming….stay tuned!!!
I don’t agree the reason to FIRE is to leave the opportunities to other people. Actually, at any moment there are lots of jobs cannot find qualified employees. While you are working, not only you are getting a salary, you are actually also creating wealth not only for yourself but also the society. I am pretty sure the value I created while I am working is far more than the salary I am paid. With the salary, I also pay lots of tax each year which is part of the money to run the country. Without the tax I and other taxpayers paid, how could people who cannot work during the pandemic get CERB? How could everybody get vaccinnated for free?
As a society, if everybody is willing to work and is able to work, the economy will blossom and it’s beneficial for everybody. As a person though, once I get enough, I might choose to retire for my own welfare. I consider that being a loss to society. So it’s actually a selfish decision. Well, after many years paying lots of tax and hardly getting any government benefits, I do allow myself to be selfish once, LOL.
I’ll agree with May.
Did my hours, paid my dues so now it is time to relax.
If you time it right the last cheque (if they still exist) you ever write will bounce.
Heard that over in Russia.
Talking to my CIBC finacial counsellor I told him I didn’t want to live lavishly but I did not want to be wanting for money either. So far that has carried through pretty well. Mind you, CV-19 sort of helped in that there was no where to spend any money except around the house.
Picked my charities that I contribute to every year so that I figure is paying my dues forward.
The rest we will work out.
“Picked my charities that I contribute to every year so that I figure is paying my dues forward.”
Very much so, and enjoy the fruits of that hard work that is now your retirement 🙂
Yes lots of us pays the taxes, but today it doesn’t cover all the free stuff government hands out. So the central bank of canada prints to help the feds cover their promises. But all this does is mortgage the future. And now we are in the second inning of the decade of twenty twenty hindsite. Hold on, spread it out, 20% or more torpedoe, can set you back ten years or more. Hard assets will have place in my future. Water soil potash copper silver gold gas, natural gas, soap salt rice. When’s the last time a canadians had to deal with inflation. I think they are all dead now. I’m 64 now. Copper was less than 30cents a pound in 1957. So inflation has been in my shadow most of my life. I’m getting a feeling it now wants a coming out party. Time to check my water tank.
Ha. Good comment Robert. I fully expect inflation to snowball ahead. We’ll see if I am right.
Inflation is coming. I just don’t get the priviledge to tell you the exact date. But one sign will be shortage of stuff, that we take for granted. We will get to go cold Turkey on something. I just don’t know if the baby boomers miss out or not. Sorry to be so negative. Just that my generation has had it so good. When you study history back to baby Jesus.
Oh for sure Robert…Boomers had it very well, maybe the best yet in terms of overall prosperity? To be determined…
Good points May. I’ve never had an issue paying taxes. Of course, I don’t want them to be astronomical….but I figure it’s a huge privilege to be in a higher tax rate. It means I’ve worked hard, had some success, and a sign I should contribute my fair share to those that are less fortunate.
I just want our tax system, as a whole however, to be efficient. It of course is far from that which annoys me. It should bother other tax payers as well – we need reform IMO.
100% agree with everything you said May.
I will add that I’m 7+ years into the “selfish” retirement part!
I also note that I see investors of CDN equities as contributors to our nation and society, by employing people, paying taxes and helping us be efficient, productive, innovative and prosperous. We actually need more entrepreneurs and more workers.
“We actually need more entrepreneurs and more workers.” Bless those entrepreneurs really, they take on so much risk in many cases.
Yes, Really are the lifeblood of our economy.
I was fortunate to have been one myself back in the day.
It didn’t matter if you were in a U.S. or a Canada broad based equities index, if you didn’t re-invest your dividends from much of the 60’s through to the early 80’s, then inflation outperformed you.
Also knowing that the first investible U.S. index didn’t get started until 1975 and wasn’t popular until many years after that. In Canada although there were a few earlier failed attempts the first indexes for investors that actually stayed around was TD e-Series starting in 1999.
Still invested in our all-in-one global balanced ETF’s in our registered accounts and individual Canadian dividend equities in our non-registered. Since I don’t know what the financial weather is going to be going forward, I tend to keep investing simple, with an eye on the historical rear view mirror as well. In retirement, my wife and I are able to re-invest dividends plus savings most months of the year into equities and quarterly distributions into the ETF’s.
I suspect owning an all-in-one global balanced ETF (registered or even non-registered) would serve many investors quite well DividendsOn.
Like you, I have a bias to owning Canadian dividend equities in our non-registered account.
In our semi-retirement, we intend to spend the dividends in the first few years but not the capital. About 3-4 years away now actually from starting that process.
Good attitude. I complained some when I paid high taxes but ultimately also felt privileged and fortunate to be at a level where I was paying them vs the alternative.
Tax system…. LOL. Its a complete cluster. Every successive govt adds hundreds of programs, taxes, credits etc that turn it into a ridiculous complicated encyclopedia for both taxpayers and the people who administer it.
Yes, really a mess isn’t it, our tax system. I would be thrilled if this becomes an election issue, right behind education and healthcare.
Thanks for the shout-out, Mark! Yes, we’re also squirrelling away Bonvoy points for a bucket list trip to the Maldives.
More realistic (at least in the near future) is a trip out to Ottawa – hopefully next spring. We’ll have to organize a money blogger meet-up over a pint or three.
Three beers sounds great more near-term.
Longer-term, it’s on our to-do list, Maldives, hopefully 2024-ish.
Have a great weekend.
Thanks for the mention! Coincidentally I just spent last night researching The future trip to Maldives 🙌
Ha, great stuff. Have a great weekend!
Congrat on being on the top FIRE list, but unless any financial blog list didn’t have DividendGrowth.ca as #1, who has now being around for 40 years, I’d say they didn’t do their research, or were being very selective.
Ha. Yes, been a big fan of Tom Connolly for many years myself Cannew.
I’ll go one further and put his link below for others.
Decades worth of wisdom from his site, as you know 🙂
Best wishes and I want to thank you as well, for your continued support.
I continue to be a fan of your income journey and investing discipline.