Weekend Reading – Financial freedom and get wealthy eventually updates
Welcome to my latest Weekend Reading edition, where I list some of my favourite finds from the personal finance and investing blogosphere.
In case you missed the last edition about the 4% rule, you can check it out here:
As always, read on, share, enjoy and leave me a comment on the site!
You can also follow me like 8,300 other folks do on Twitter here.
Have a great weekend!
Impressive as always – Million Dollar Journey highlighted his Q3 financial freedom update.
In this article, I found his approach to navigating any negative sequence of returns risk interesting:
“There are a few ways to reduce the sequence of returns risk in retirement, namely, having the right asset allocation, having flexible spending, and having strategic cash holding to add a buffer in case of a market downturn. For me, I will be maintaining a significant equity portion of my portfolio in addition to having a significant cash position. Essentially use cash savings for day-to-day expenses and withdraw from the portfolio (dividends) annually to top-up the cash portion.”
It is absolutely our plan to keep close to 100% equities as we enter semi-retirement in a few years, as we work part-time. I/we also plan to keep a modest cash wedge of 1-years’ worth of expenses in cash throughout semi-retirement.
Related to this financial freedom update, from Sure Dividend, can an investor really get rich from dividends? I’m not sure about getting rich but I do believe investing in dividend paying stocks can be a get wealthy eventually strategy.
The same might be said for low-cost indexed funds of course. No stock selection required. No worries about major market underperformance. In some cases, with an all-in-one ETF, no re-balancing required!
Here are some of the Best all-in-one ETFs to own. I own a couple from my own list. I eat my own cooking!
Good podcast content here from The Maple Money Show once again. Guest Jim Yih from Retire Happy fame discussed DIY investing options with Tom Drake and why traditional financial advisors could still be a great choice for some investors.
I agree, to some extent. Not everyone is comfortable with investing on their own. I wrote about the four (4) traits all DIY investors need in place to be successful this week:
You need in no particular order of importance:
- The desire to learn and continue to learn.
- Knowledge in the subject matter.
- The right temperament.
With reams of financial information available, I would argue there is almost no excuse not to understand the basic elements that comprise 80,000+ personal finance books. I’ll summarize my FREE book for you:
- Book introduction: Spend less than you make.
- Chapter 1: Save and invest the difference. Invest in mostly low-cost products. Consider diversifying your investments.
- Chapter 2: Avoid active trading. Celebrate falling stock prices – buy more when stocks fall in price.
- Chapter 3: Disaster-proof your life with insurance, where needed, to cover a catastrophic loss.
- Book conclusion: Rinse and repeat for the next 30-40 years.
Please buy my book! Ha.
Bob Lai from Tawcan wrote about some of his potential early retirement withdrawal strategies.
“When we live off dividends initially (i.e. 40s and/or 50s), it is most likely that we will have income from either part-time jobs and/or our side hustles. So further calculations are required to determine maximum tax efficiency. And since our tax situations will probably change, we need to remain flexible with our early withdrawal plans.”
Chrissy from Eat, Sleep, Breathe FI shared her latest FI journey update.
Congrats to Matthew Freeman – who is doing very well with building a dividend income stream.
On Cashflows & Portfolios we covered 3 ways to prepare for the coming stock market correction. You know it’s going to happen at some point!
Great write-up by Dale Roberts about trying to make sense of the markets.
Jessica Moorhouse put a wrap on 12 seasons for her podcast series. Incredible.
My goodness, what a great post. Life Remains Fragile – always. Well put by The Retirement Manifesto.
Last but not least, a great decision-making framework to live by from Accidentally Retired: make it a “Hell Yeah!” or “No”.
Other great pages and reading material:
You can always find some great questions asked by readers on my FAQs page.
There are also dozens of Retirement stories and essays you can learn from on that page.
Save, Invest, Prosper!
As always, check out my Deals page.
My very own personal BMO promo code remains available! Use that BMO code to get hundreds in cash back when you open investment accounts with BMO like your RRSP, TFSA, taxable account and more! What’s even better with BMO now is they have commission-free ETF investing. Yup. They are now offering commission-free investing for more than 80 Exchange Traded Funds (ETFs), via their self-directed BMO InvestorLine clients. The ETFs cover a broad range of asset classes, geographies, management styles and popular themes from Canada’s largest ETF providers, including BMO, iShares and Vanguard. Simply awesome and I hope more big discount brokerages follow their lead.
I’ve got a new partnership with EQ Bank – just look at the banner in the margin! EQ Bank typically offers the best savings account rates in Canada. I hope to park my cash wedge for retirement there!
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All the best and stay well!