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!
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?
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.
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%.
A Purple Life feels she doesn’t need to explain to others why she doesn’t want children. My wife and I feel the same. I think we’ve been asked about 1,259 times why we don’t want to have children. Rebuttals usually say to us: “we are selfish”. Isn’t that nice??
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.
Save, Invest, Prosper!
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Happy saving and investing folks,