Weekend Reading – Christmas cash giveaways, navigating financial uncertainty, another FIRE journey and more!
Welcome to my latest Weekend Reading edition where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
You can find my previous Weekend Reading edition below!
This week, I found a host of articles to check out.
First and foremost, you should know that the new 2021 TFSA contribution limit is (a not-so-surprising) $6,000 again per adult Canadian this year.
With this TFSA dollar limit announcement, this makes the total contribution room available in 2021 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $75,500.
Now onto Weekend Reading!
Have a great weekend and enjoy!
My friend Stephen Weyman has another HUGE Christmas giveaway on his site. Win $500 as the 1st place prize and there are other prizes there as well. Enjoy and I hope you win. Great work Stephen.
Mike Smith, a fan of this site, posted this infographic on Twitter citing 10 recommendations to navigate financial uncertainty. I think these tips are great, but very difficult to go 10-for-10 consistently and stay on top of everything. I would imagine if you could go 8/10 that would be great. Financial management takes time, energy, and commitment and most of us just don’t have right now. Stay patient with yourself people and hang in!
Some interesting expert takes on the Financial Independence Hub recently about the first step in retirement planning. I have a bias to this one/this advice:
“A smart first step in retirement planning is creating a retirement budget. You’ll need to identify the amount of money you’ll have coming in during retirement, how much it will cost to enjoy the retirement you have in mind and the amount of debt you have.”
Absolutely. I figure any other starting point is rather useless. You really need to figure out what you intend to spend (both needs and wants), and work backwards from there to figure out your “enough” number.
You can see in my recent Financial Independence Plan we’re trending to that annual spending target forecasted nearly a decade ago! Pretty good planning eh? 🙂
The guys at StockTrades.ca highlights some their top picks in the renewable energy sector. I would think this sector, along with healthcare, are the places to be in the coming decades for generous returns.
Citing an email from investor advocate Ken Kivenko to his readership – including me – he shared a sad reminder about deferred sales charge (DSC) mutual funds to those investors that still own them. These are toxic and harmful funds for your portfolio health.
From Ken’s email:
“If you reside in Ontario, it is likely you will be perpetually exposed to these toxic funds, albeit with reduced probability of harm. These funds actually exploit smaller investors and are socially irresponsible investments. If you want to learn more about how the Ontario Securities Commission plans to limit investor harm, read this insightful commentary by respected commentator Dan Hallett.”
So, like Ken, I urge you to disengage with any DSC salesperson (because that is what they are) and strive to own lower-cost funds that are diversified and do not provide kickbacks to the salesperson. In doing so, you will increase your financial health and retirement income security.
Congrats go out to Murray who won my latest giveaway in this post/review about Income Investing Explained.
I’ll have more book giveaways in the coming weeks so please stay tuned!
Nice to listen to Gean and Kristine from F.I.R.E We Go on Explore FI Canada podcast this week. Well done Gean and Kristine – going from $60,000 in debt to the Smith Manoeuvre to owning a condo in Brazil on their current journey to Financial Independence Retire Early (FIRE) in another eight years. A coastal condo in Brazil sounds lovely!
Speaking of FIRE and debt and income and more…good to see their take on net worth updates following my Twitter poll:
From F.I.R.E We Go:
“We completely understand that Net Worth Updates don’t show the complete picture. At the end of the day, what really matters is the cash flow in your bank account.”
Yup. While net worth tracking is fine and good (I still don’t post any in detail for these reasons), I think it’s far more important to focus on tracking the money your portfolio can produce for motivation purposes instead.
If you save and invest in assets with regular discipline, and track the income your portfolio can deliver, I have no doubt that your net worth will grow and take care of itself.
With my comprehensive Financial Independence Plan update done, I will turn my attention this weekend after some walks or biking to my latest dividend income update for next week. I look forward to sharing a new all-time high with you!
In the meantime, this was last month’s update highlighting part of my portfolio churns out almost $10 per working hour without fail. It’s like having another part-time job although I don’t do anything…I mean I really don’t!
Always good to make sense of the markets. Well done Dale in this latest collaboration with MoneySense.
In the article he shared:
“BlackRock is up over 33% in 2020, not including dividends.”
Yup. I know. For the record, I’m a VERY happy shareholder too!
Last but not least – Mike Heroux has a take on the best Canadian utility stocks to own. Check it out!
Reader question of the week (adapted slightly for the site):
As a follow-up to some previous reader questions on your site, what is your top-holding now and would you buy more of it at today’s higher prices?
Great question. Thanks for your readership.
Yes and yes!
My top holding is still TD Bank and I am buying more of it thanks to my dividend reinvestment plan (DRIP) turned on inside my registered accounts where I hold this Canadian stock along with many other stocks.
You can see a good portion of my portfolio on this dedicated page here.
Also, for key reader questions I now have this FAQs page on my site for you.
I will continue to add some great reader questions and my answers to this page over time. Check it out!
Happy investing and see you on the site again soon. Out for a long walk and likely a bike ride today too!