Weekend Reading – Bitcoin ETFs, Dogecoin creator cashes in, dividend raises, best places to live and more!
Welcome to my latest Weekend Reading edition, highlighting some of my favourite articles from the week that was across the personal finance and investing blogosphere.
Just in case you missed last week’s edition you can find it below!
Weekend Reading – Bumble billionaires, best brokerages, RRSP vs. TFSA debates, retirement and more!
Leading off this Weekend Reading edition – what else – Bitcoin!
As per various news releases, Purpose Investments Inc. launched the world’s first Bitcoin ETF, backed by physically settled Bitcoin, this week.
The Canadian dollar denominated ETF non-currency hedged units and U.S. dollar denominated ETF non-currency hedged units of Purpose Bitcoin ETF (the “ETF”) began trading recently on our TSX under tickers BTCC.B and BTCC.U, respectively. The money management fee is 1%. You can hold either the Canadian or U.S. version in your TFSA or RRSP. This ETF should provide liquidity as well should investors want that.
I think the main positive for any prospective ETF investors is: similar to physically backed gold or silver products, the Purpose ETF(s) will be backed directly by physically settled Bitcoin holdings.
Now, the big question is – are you buying??? This has me thinking…
Enjoy the rest of these reads and see you in my comments section below! Have a great weekend!
Smart take from Brian So on insurance – as a follow-up my own case study in the last few weeks.
In Brian’s article, he highlighted a few reasons why you may not need life insurance in retirement. His big three reasons:
- No debt
- No dependents
- The ability to self-insure.
Those reasons align perfectly with my recent decision making on this subject – should I get another term life insurance policy or consider a whole life insurance policy?
This was my term life vs. whole life insurance decision.
Very nice of Rob Carrick from The Globe & Mail to highlight this post in his Reader newsletters this past week. For subscribers, you can find Rob’s article here.
Alyssa Davies created her own household emergency kit. Smart. We have one as well but we need to revisit it. Beyond her list as minimums I include earplugs (who knows where you might have to sleep; cell phone chargers and portable back-up chargers (are you going to have power in an emergency?), and some toiletries (because if you gotta go…)).
This week on my site I shared my latest (and first) dividend income update for January 2021. Onwards and upwards!
Related to dividends, nice to see a few more dividend raises in my portfolio this week:
- TC Energy (TRP) raised their dividend by 7.5%.
- Nutrien (NTR) raised their dividend by a small amount, 2%.
These hikes in my portfolio follow three other recent raises:
- Bell Canada (BCE)
- Brookfield Renewable (BEPC)
- Brookfield Infrastructure (BIPC)
All these raises combined, although a few cents per share for each company, increased my forward dividend income by a few hundred bucks per year, doing nothing at all….
I highlighted those raises in this edition that included busting some RRSP myths and market bubble myths here.
Remaining on the dividend income train, it’s worth mentioning I own all top-6 Canadian banks in my portfolio but I don’t expect them to raise any dividends until 2022 personally.
You may recall The Office of the Superintendent of Financial Institutions believes there may be only some exceptional circumstances where a non-recurring payment of special, or irregular, dividends may be acceptable – they suspended share buybacks and dividend increases by Canadian banks and insurers in March as part of a raft of measures intended to gird against the economic impact of the coronavirus pandemic.
Bottom line – if you also own Canadian banks or life insurance companies, then don’t expect them to raise any dividends this year.
The rise of Dogecoin baffles the creator of that cryptocurrency – even 5+ years after he cashed it all in.
“I’m pretty risk averse, I just put everything in an S&P 500 Index fund or Wealthfront,” said Billy Markus, the creator.
Tax-deferred growth is still VERY good – everything you need to know about the RRSP!
Yup, as if 3,000+ words about the Tax Free Savings Account (TFSA) wasn’t enough!
My blog partner and I wrote everything you need to know about the RRSP this week on Cashflows & Portfolios.
Check that out, offer a comment, share some feedback of course and we’ll be happy to add any answers to this massive post!
More news to come on that site as we approach the spring – stay tuned.
Financial Independence – Retirement
As part of my commitment to share some ongoing financial independence, early retirement or retirement articles from the blogosphere, a reminder about this post on my site and some new material:
Readers Mike and Julie are looking to retire in about 20 years, at age 55, and they want to spend $50,000 per year on average.
What does that take and how much do they need? This post tells the exact answer.
They want to spend $50,000 per year in retirement – did they save enough?
I enjoyed this advice from MoneyGal aka Alexandra Macqueen on how to boost retirement income for a senior with minimal retirement savings. While this senior will need to work longer to meet their retirement income needs, the benefit is two-fold: 1) working longer can boost the eventual Canada Pension Plan (CPP) benefit, and 2) by doing so, the CPP benefit can increase by more than the 42% boost if Canadians defer CPP from age 65 to age 70.
Don’t forget to scroll through my dedicated Retirement page where you can find lots of early retirement success stories and great answers to questions such as when we to take CPP or OAS.
Well done GenY Money on her January 2021 dividend income.
Dale Roberts highlighted some of the returns of his Cut the Crap Investing portfolio solutions. Pretty amazing that a simple, balanced portfolio of stocks and bonds – during a wild 2020 – still returned a solid 10%.
The folks at Credit Card Genius highlighted Quebec City as the #1 place in Canada to live. Interesting! I prefer Ottawa but I’m biased and surprised it is #7 on the list.
The guys at Stocktrades.ca shared some of their favourite and top-10 Canadian dividend paying stocks to own.
Happy saving and investing folks!
Great work Mark !
I am a newbie investor and I’m just trying to understand the difference between buying the US and the cdn Purpose ETF
Really just the ability to own it in USD $$ or CDN $$. Also helps attract USD investors 🙂
Hi Mark. Great info., as always! Question, would you hold US ETF’S in a TFSA or is the RRSP better because of the withholding tax?
Personally, I like holding any U.S. ETFs in my RRSP. That makes the most sense to me. Otherwise, I do own some CDN-listed ETFs that invest around the world in my TFSA and RRSP to avoid any currency conversion headaches.
Great article as usual and yes the Bitcoin and ARKK etfs are all over the news , Robb engen have a good article on this subject as well this week, i guess J&J Coke and MCdonald stocks are old fashion now 🙂 like i said last week I’m guilty too of trying this new flavour via “HIVE” which is a blockchain company i bought it 500 @ 2.40 and now its almost 7$ it’s crazy seeing it going up everyday by a minimum of 5% something isn’t right 🙂 I also bought few shares in HBLK that has gone up but at the end of the day I won’t invest more then 2% of my total portfolio and i hope i won’t surrender to all the temptations of making a quick $$ because i know one thing for sure no tree grows to the sky , so yeah I better stick to my boring etfs and hopefully couple of good solid dividend stocks that i’m planning on buying in the future rather then playing with fire and crypto.
Ha. re: JNJ and others.
Well, I’m not selling JNJ here Gus. I’ve owned it for over a decade and even with some contributions over the years I’m up over 100%.
I will likely keep all my boring ETFs for the coming decade+. I own a few VTI and I figure that collection of 3,600 stocks is pretty damn good for the few dollars it costs me in MERs per year.
I want to own more QQQ but I don’t have a lot of USD $$ right now. All invested.
I’ll keep you posted if I own some Bitcoin!
I bought some hive too. Sold it last week. A double in 2 weeks. I’m not the same person with this play. I might buy it back, but I can’t just drop it on my toes. Sleep better with copper, cmmc, hbm, but copper stock ready for a correction too. I also like nat gas, holding Nva. Nice offset to play arx + vii. These ideas are only very small parts only 1% each. If they get
Torpedoed I have a hurt ego. 90% safe stuff like this blog site so wisely reminds. Good luck on hive, I do like the guy Frank who runs the show there. Rob
You’re another investor Rob that has bought HIVE. Interesting!
Well to qualify put your amount of money, you would use for idea. Place in garage can, put outside on porch and shine the porch light on it all night. If you can sleep well. You are than a accredited investor. But it not investing. I had only 1200 shares I sold way to early. But I have learned that I like my self more when I sell early.
Welp we did it. We threw in 1% of our portfolio into BTCC.U on Friday when it launched.
Wow. Nice. You bought the USD version Court? Why is that vs. CDN? Simply you had some cash saved up there?
I am considering a very, and I mean very small portion of funds in BTCC which I will buy when my next round of dividends are paid out in my RRSP account. As for the insurance, I no longer have life insurance for the same reasons that Brian mentions. I have no debt, my kids are adults now and we have enough invested to cover any and all costs that may come our way. Another nice weekend read list Mark.
Yes, going to self-insure in another 9 years ideally. Need to grow my emergency fund to ~ 1-years worth of cash. I think we are looking to have $50K set aside for emergencies in retirement and then “live off dividends” as you know in the first 5-10 years of semi-retirement while working. That is our plan.
Ideally, those days are about 3-5 years away for semi-retirement so we have to start saving up soon for that cash fund.
Regarding to having kids, was a DINK, but now have two kids and honestly believe it’s the best decision in MY life, I think there are good and bad things on both sides. The only thing I can say is as long as everybody is happy with their decision, then perfect fine.
Tragedy happens when people who really shouldn’t be parents regretting to have kids, or people who really want to be parents are not able to. We are pretty lucky to be able to become parents at an older age.
Great comment about the tragic-side of parenting – I feel so many folks have children that shouldn’t. You need a license to drive a car but you don’t need one to be responsible for another human being. Always seemed odd to me from that perspective!
Thanks again Mark. As per our Twitter conversation readers should be aware that the 3iQ funds are closed end funds and can sell at a premium or discount to the NAVPU (net asset value per unit). They will either be on sale (discount) or expensive (premium). They are currently on sale. Folk can find that info on the 3iQ site or on …
The ETFs should closely track the price of bitcoin.
Folks looking to get in or add, should pay attention to the discount or premium with QBTC. It my still be on sale next week. Who doesn’t want a 5% or 10% sale when they buy an asset? Using both the 3iQ and ETFs may be advantageous.
For those interested in ‘what is bitcoin’ they can check out my post on MoneySense.
Thanks again for the mention, and link to ETF portfolio returns.
Geez. Bitcoin stuff is complicated for a guy like me.
Looking at QBTC.u it seems like its roughly at a 12% discount here sat. afternoon, if I’m calculating correctly. BTCC.u?
What’s your thinking for why holding both is advantageous?
HI RBull, you can use the QBTC when it is selling at a discount, and the ETFs when they are not selling at a discount. The 3iQ funds should remove the discount over time. The ETFs should track quite closely to the underlying bitcoin price.
I will be checking out QBTC on Monday morning.
I will be doing a bitcoin theme on my Sunday Reads post, out soon.
Thanks Dale. I’m on your list so will soon see.
I may dip my toe in with both.
Sorry to blogger bomb Mark, but here’s the link that explains the basics. Feel free to drop links in my comment section, ha …
Ha. All good. Thanks for the link.
I thought you had a MoneySense article as well? Coming up maybe?
That’s a great link Dale – thanks for that.
As for the 3iQ fund, yes, I might dabble in that or the Bitcoin ETF by Purpose in the coming weeks. Savings mode right for our RRSPs. Hope to make a deposit in March or April…although I have some stocks like AQN, CNR, and ETFs like VTI I want to buy more of.
Have a great weekend,
Mark, you touched on a very timely article on the Bitcoin ETF. Everone wants to get on the Bitcoin train, especially after Elon invested in it through Tesla!!!! Personally, I think the Bitcoin saga has a tremendous long run way to roar ahead given that more and more financial institutions are getting onboard. It’s worth a gamble by investing a small % of the portfolio. For risk takers, the gamble can pay off big time.
Mark, thanks for bringing this to our attention. Wish you well and great success in your investing journey.
I might Ken – speculate a bit on the Bitcoin ETF in the coming weeks. Just a bit.
Thanks for the kind words Ken and hope your investing is going well in 2021. Markets overall off to a good start 7 weeks in.
Bitcoin is on a tear right now but I just can’t get behind it, even in ETF form. Working on a post as to why.
Have a great weekend Mark.
Great stuff. I suspect mostly to speculation. Overwise, why buy? There are so many other companies that build products and services that have far more tangible value. Can you imagine not having any electricity for example? 🙂
Ping me when your post is done – happy to read and link to it!
That Bitcoin ETF sure has captured the spotlight, it’s even got me thinking. I’ll be doing a deep dive on the merits of BTCC on my channel in an upcoming video. Any just maybe…put some money in myself?
Yes, maybe, just a bit? 🙂
haha all will be revealed soon in an upcoming video 🙂
Good, send the link when done!
Once again, Mark, you’ve provided great resources and excellent weekend reading. The comment about not having children made me chuckle. We used to get the same question, and I often wanted to ask, “why did you decide to have the little Rugrats? You must be so proud of your DNA!” I often marveled at how it was socially acceptable to ask why one didn’t have children, but to inquire why someone would breed?…don’t go there!
I would fully answer why I had children and I can’t imagine anyone being opposed to that question. Maybe surprised, but not opposed.
I agree that it is not appropriate to ask someone why they did not have children, as most are not childless by choice and it could be a very hurtful question.
And yes, my DNA, lol. I am extremely proud of my children.
Your use of the term rugrats explains it all. Sorry for you, but everyone has the right to make their own choice, if it is a choice.
Thanks Barbara. Based on your comments and from what I know, you seem like an extremely committed and caring parent.
It’s a touchy subject for many I think. It’s not that I hate the questions to my wife and I, simply, I don’t ask they why others had children as a choice (to your point) but it seems appropriate for others to ask us why not. I really wasn’t raised that way I guess 🙂
Hope your weekend is going well – out for a nice walk for skate on our canal later today!
“It’s a touchy subject for many ”
I can not envision any valid reason for asking why or why not. But I *can* for asking if one did or is planning to. The decision to have children or adopt would be a very large factor in any financial planning scenario and should be a consideration even before a confirmation of pregnancy.
I can also see the subject of having/not having children coming up when we see so many FIRE advocating bloggers/authors selling/extolling their plan. If people want to put their financial affairs out into the public realm for gain, it would be logical to expect to be asked about the factors involved.
That’s a good point: “If people want to put their financial affairs out into the public realm for gain, it would be logical to expect to be asked about the factors involved.”
I have no problem people asking me that question, if they are asking about FIRE, etc. context – since it’s never been about financial gain or not to me, there are many other factors that we’ve chosen not to have kids and I feel those are personal.
As I said, “I can not envision any valid reason for asking why or why not.”
Thanks Karen! There are certainly people out there that deeply wanted children (and seem to be good parents) but I also find just as equally there are others out there that had no idea what having children might be like – and had them all the same. I find the latter terrible!
Oh my….bitcoin to the moon…or beyond….or back down to earth….
Geez, have loads of cash….maybe I should step into the casino…
Ha. I must say, I am tempted to put a small bit of money into the Purpose ETF now launched.
I will however be buying some of these funds and stocks though!
My main priorities for 2021 are more AQN and CNR – then some BLK on USD side. If I had to pick one ETF I would likely buy a bit of VTI.
RRSP contribution for 2021 tax year going in, in a few weeks, hopefully by mid-March. Savings mode now.
Stocks to the moon!
Ya, maybe here too. Definitely a flyer to me.
Good plan on those stocks. Own none of them however.
I haven’t been able to bring myself to buy more US etfs now. Maybe they will rise a lot more before sinking, and rising again.
Ya, yes, you would like that as would I! 20% down only to come back up!
We know it will happen, but not likely in an exact linear way.
When- who the heck knows?
I also want to add to aqn and cnr. Added 100 shares around $130. Regret didn’t buy more. Yes, I am buying. Added to ENB and SU too. Might adding more Telus if the price down more. It’s overvalued rigjt now. Trying to get fully invested knowing now that I have only enough courage not to cut on the floor, but not enough courage to buy on the floor.
Telus should be a great growth stock in the coming decade. They seem to do so many things well and have a great brand. I think at last check Telus makes up about 3% of my total portfolio and BCE is about the same. DRIping multiple shares of Telus every quarter.
I’m a big fan of AQN and CNR for growing dividends and capital gains.
I’m convinced! Buying Purpose ETF on Monday. US in my RIFF Canadian in my TFSA.
I may jump for joy or …. cry on this one. I did this on WEED and bought them at $5 to 9$ and sold then at $61.
I don’t think these things happen too often in a lifetime but either way it won’t mean food off the table.
Thanks Mark. I always read your Blog with great interest. Good job
Ha. Look at you! I think I will probably get some (small amount of Purpose ETF CDN version) in the coming weeks.
I’ll keep everyone posted of course since I have a few other stocks and ETFs on my buy list this year.