Weekend Reading – Dividend raises, giveaways, retirement numbers and more #moneystuff
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.
These were my posts from the past week:
In golf, the finishing holes are just as important as the front nine to score well. The same could be said for asset accumulation years and asset drawdown or decumulation years when it comes to money management. Read on how you can earn retirement income for life and enter a giveaway to receive a copy of a new book about it.
High fund fees and nasty trailer commissions should be a BIG flag to you as an investor! If someone’s compensation depends on your purchase of a particular fund, then that’s a conflict of interest. The financial product someone is selling you might not be in your best interest. It can pad the salesperson’s bank account though.
Here are the juicy dividend increases that just added more than $100 per year in retirement income to our portfolio – by doing nothing – even though the markets are lower this year:
Let’s not forget Great West Life increased their dividend by 6%. As Don Cherry says – beauty.
Enjoy these articles!
Apparently the precise retirement number for an individual, based on a recent survey to Canadians, is $756,000. From the article: “Unfortunately, few individuals are close to accumulating even a significant fraction of that $756,000. On average, Canadians have saved $184,000, a figure that’s higher than I might have expected, given the abysmal retirement savings levels south of the border. (According to the Economic Policy Institute, almost half of U.S. families have no savings at all, the median amount is US$5,000 and the median for U.S. families with savings is just US$60,000.)” This means the majority of Boomers in the U.S. and the next generation (Gen X) living there might be living out retirement years in poverty.
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Registered Retirement Savings Plans (RRSPs) are getting a bum rap as a tax trap. I guess many Boomers now entering retirement have never realized they didn’t pay any tax on their RRSP contributions – essentially what they had all along was a government loan that had to be paid back at some point. This is the linchpin in any TFSA vs. RRSP better debate.
Here are the drawbacks associated with behavioural financial during a market correction – according to Ben Carlson. Carlson cites Thinking Fast and Slow by Nobel Prize Winner Daniel Kahneman in his article. I thoroughly enjoyed that book. One of my favourite takeaways from this book about our general behaviour and how it impacts our investing choices was this:
“We are born prepared to perceive the world around us, recognize objects, orient attention, avoid losses, and fear spiders.”–Daniel Kahneman. How true…
Enjoy the weekend and see you next week!