Weekend Reading – Bumble billionaires, best brokerages, RRSP vs. TFSA debates, retirement 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 I wrote about my recent dividend raises that boosted my income, how some bloggers are managing their cost of living, we discussed a few RRSP myths and much more! Read on!
This week, I wrote about:
The facts you need to know about tax deferred investing using the RRSP including RRSP contribution room for the 2020 tax year.
As “RRSP season” ramps up, I thought it would be a great time to remind you that unless you manage the RRSP-generated refund wisely – you are missing out on the true power of the RRSP account for wealth-building purposes. Make sure you understand that linchpin in the RRSP vs. TFSA debate!
Enjoy the articles and let me know what more content you’d love to see on the site! I’ll be back next week with my first dividend income update for 2021! Any guess on what happened since December 2020???
Fans of this site, Ratehub.ca, updated their post on the best online brokerages to consider in 2021.
Questrade, Wealthsimple, TD and BMO come up very high on their list – and rightly so.
I have a strong partnership with a few of these top brokerages and Questrade remains one of the best. In fact, according to this recent release, Questrade was in fact named one of the best customer service experiences amongst all brokerages.
Here are some things I would strongly consider when choosing any online brokerage:
- Buying and trading fees – since not all brokerages are created equal, I would only consider a low-fee or a free-ETF purchase brokerage right now. If you are considering owning some stocks, for your core and explore approach like I do, then an online brokerage with some research tools are also very helpful.
- Account minimums and fees – some brokerages have account minimums for TFSAs, RRSPs, other. Ask about those account fees before you select a brokerage.
I’ve had a partnership with Questrade for some time now and I will continue to support them based on their low-cost or no-cost approaches.
Invest with Canada’s low-cost leader!
Congratulations to Whitney Wolfe Herd, for many firsts this week after dating app Bumble went public. The 31-year-old is the world’s youngest self-made female billionaire to go along with the youngest female CEO to ever take a company public in the U.S., based on the report I read.
Tax system idiocracy
From the Canadian tax system idiocracy file, our Canada Revenue Agency is hiring an additional 2,000 agents from a private firm to support the 2020 tax year. I mean, incredible and insane that our tax system is so complex few taxpayers can answer their own questions; most questions must go an agent; the agents can’t answer questions due to overwhelming demand, and now we need to hire more people with taxpayer dollars to figure it out.
Idiocracy in action.
With tax system mismanagement – best love and use the TFSA while you can!
Wow, 3,000+ words about the Tax Free Savings Account and pretty much everything you need to know about that account to build wealth including the TFSA contribution limit for 2020/2021 was shared on Cashflows & Portfolios this week.
This post was a great reminder to me why I always, and I mean always, maximize contributions to my TFSA every single year.
Kari from Money In Your Tea reminds us that while any RRSP is an obvious choice for putting money aside for your senior years, the TFSA can be so much more. Totally agree! See link above!
Finally, on the TFSA subject this week, Bob from Tawcan had to contact the CRA “and plead for forgiveness” when there was an over contribution error for one of their TFSA accounts.
Nice post here by Chris Istace on ecofrugality. From the article:
“The single largest ecofrugality choices we have are for our homes and our vehicles. They take huge amounts of resources to create, take ongoing resources to utilize and maintain as well as create waste and some form of environmental impact throughout their life cycle. To tackle this challenge realize that people honestly don’t care what you drive or what kind of house you live in. I personally appreciate people for them, their energy and soul…not their SUV or McMansion.”
Financial Independence – Retirement
I spend a lot of time thinking about financial independence, not so much “retirement”, but either way I know most of my readers do too. That is why you are here!
So, as part of my Weekend Reading roundups going-forward, I’m going to try and list a few articles or case studies on this subject in a dedicated section. This way, you can read some of my older content that remains relevant, you can check out new case studies on this subject, or I can link you to other articles, tools and more to help with your goals. Sharing is caring – right!?
First up, a case study from my site. This woman wants to know if her retirement plan is bulletproof. Absolutely in my book. Read why:
You can always find many other retirement or financial independence essays and case studies on my dedicated Retirement page.
Stay tuned to my site – I’m working on another case study to share in the coming weeks for a millennial couple.
Save, Invest, Prosper!
Thanks to my passion for personal finance and investing, some great companies want to offer deals. See what might work for you below!
Back to the subject of top Canadian brokerages – check out Bank of Montreal / BMO.
My very own personal BMO promo code is back! Use that code to get hundreds in cash back when you open investment accounts with BMO.
BMO also let me know about their new health check tool. Seems cool. This tool allows BMO investors to receive a report highlighting strengths and key areas to review against four key indicators: asset allocation, diversification, security ratings, and risk. Seems like a smart integrated way to help investors better understand their portfolio profile without ever visiting a branch.
Learn more here and as I dig in myself I’ll likely have more to share!
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Happy investing folks,