Weekend Reading – Big list of biases, teaching for free, rational investing decisions and more

Welcome to some new reading material for your long Canadian Thanksgiving weekend.  I’m looking forward to the weekend, how ’bout you?  Earlier this week I offered up these tips:

How to save and splurge on vacation

…and I was curious how new mortgage rules might affect you?  I suspect although I don’t know for sure, these new rules might price many Millennials right out of the housing market.  Maybe that’s a good thing.  Home ownership isn’t a right and it isn’t for everyone.  Actually, it can be rather expensive and time consuming.  As always, buyer beware!  Any Millennials out there annoyed with these new mortgage rules?  Any current home-moaners annoyed with the expanded “stress test” and other requirements?

Have a great weekend and enjoy your Thanksgiving turkey! 🙂

This Millennial has over $280,000 in the bank at age 25.  How?  He got into trades.  Smart kid.

Here’s a big list of behavioural biases.

Andrew Hallam is teaching for free, just don’t steal his food!

Curious about what assets to put where?  Read this article.

I enjoyed reading Ryan Modesto’s post here – suggesting U.S. investors that overlook our Canadian market are doing so at their own risk.

Ben Carlson mentioned some advisors are mulling over a career change due to fiduciary guidelines.

Mr. Money Mustache bought an electric car.

Have a great weekend!

12 Responses to "Weekend Reading – Big list of biases, teaching for free, rational investing decisions and more"

  1. “Advisors Are Mulling a Career Change Because of Fiduciary Guidelines”
    They will probably change their title to “Consultant”. I’ve worked with and seen the results of what those so called Consultants provide for the exorbitant fees charged. In most cases they provide a re-cycled document with slight modifications referring to the clients situation. Look at all the ones government uses to provide studies or evaluate what every already knows what the problem is, the causes and what has to be done.

    Reply
  2. re: “You worked hard for your money, stand up for it.” ~BCM
    This is one thing which constantly boggles me. As said, we work hard for our money (often times at jobs we don’t enjoy), but once the money is in our pocket…we stop. Huh? A wise-ish person would not only stand up for their money, but turn around and make that money work like a dog! Ha! Sadly, most of us don’t.

    re: “$280,000 in the bank at age 25″
    From the article: Top financial concern: “To me, retirement is everything.” Oi. What a way to live life. Each to their own.
    But at least he has a goal: “I’m actually going to go back to school next year – I want to be a financial planner, I think I’m going to enjoy that more – and if it doesn’t work, I’ll come back to this.” Oh, goody. I’d rather have a millwright in the economy than yet another financial planner. (As a side observation, he hasn’t experienced a market crash or bear market or economic recession, thus is heavily biased and untested — not an FA I would want.) Note to Mr. Olsen, you don’t need any certification in Canada to operate as a Financial Planner, so don’t waste any of your precious money or time going back to school. Which leads to the next clip…

    re: “some advisors are mulling over a career change”
    Even before all the new rules, regs, and compliances were put into place (aka the good ol’ days), a healthy chunk of advisors quite within the first five years of practice. It’s a very challenging career. The crafty ones (aka not synonymous with the good ones) will still find a way to make the most money.

    re: “Mr. Money Mustache bought an electric car.”
    I read the article twice and am still unclear of his reason behind going electric. Is his concern ‘general pollution’ or ’emissions pollution’? Best I can surmise is this: “to run a long-term science experiment and report the data back to you.” Right out of the gate, it is 100% NOT a “science experiment” so I won’t bother going any deeper. Needless to say, I don’t lose any sleep fearing “green tech” will decimate my oil investments any time before I die.

    Reply
    1. Yes, the key is making the money, make money, so you don’t have to 🙂 You’re right, most of us see money as something to spend not put to work as an asset.

      Hey, he’s 25. At least the kid has goals! I think being in a trade is great. I am considering it myself in the future.

      re: “Mr. Money Mustache bought an electric car.” Not sure. I suspect he doesn’t know what to do with his $500k per year blog income. Must be nice 🙂

      Reply
  3. I have two remaining individual stocks to get rid of on my “Not Great” stock list (like Michael). Then I’d be left with my own ETF (which are still individual stocks) of what I’ll be happy to own and almost totally ignore. These holdings will carry a Zero MER and no fees at all so I guess I’ll have to reinvest those small amount to buy more shares.

    Reply
  4. Greetings! I cannot access the Globe & Mail article; “This Globe and Mail article said not to overlook these potential dividend ETFs”
    Can you re-post the article somehow? Thank you.

    Reply
    1. Sorry, I forget sometimes these articles are for subscribers only.

      Here are the two ETFs profiled:
      1) PowerShares Canadian Dividend Index ETF (PDC). MER = 0.55%
      2) Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY-T). MER = 0.22%.

      Hope that helps?
      Mark

      Reply
  5. I know it sounds counterintuitive, but based on my review of biases, I am not sure if investors have actually benefited from studying biases. In fact,I believe one researcher of biases had ignored most of his research, and just decided to put 50% in stocks and 50% in bonds. I found that surprising. I do not think that studying biases has made us better investors.

    Reply

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