Weekend Reading – Focusing on the future and inflation edition
Welcome to my latest Weekend Reading edition – the focusing on the future and inflation edition.
You’ll also find some of my favourite finds from the personal finance and investing blogosphere here too!
I know you’ve been busy with summer (good on you!) so here are my latest posts:
This was my juicy June dividend income update. I’ll be working on my next income update, this weekend!
I wrote why the 4% rule doesn’t work for FIRE (Financial Independence, Retire Early).
I wrote 2,000+ words about why I really think you should become a DIY investor.
Still unsure about DIY investing? OK…. Consider these mutual fund options as a great case for active money management with low-cost provider: Vanguard Canada.
Have a great weekend and thanks for your readership!
“When you focus on the past, that’s your ego. … When I focus on the future, that’s my pride. I try to focus on the present. That’s humility.”
— Giannis Antetokounmpo, NBA All-Star
A good takeaway. Focusing on past accomplishments creates obstacles to success in the present. If you’re still talking about something great you did 20 years ago like it was yesterday, your ego is getting in the way.
What you did in the past makes a good story. What you’re doing now makes a difference. Today and focusing on tomorrow – matters…
What about inflation – how can I fight it?
Jon Chevreau wrote about inflation impacting many retirement investments. Absolutely it will. I own a mix of REITs, energy stocks and commodities in my portfolio to fight inflation. Definitely owning stocks over bonds.
Recall from a broad perspective, some inflation is very good. I wrote about that in this Weekend Reading edition.
Jon and Cashflows & Portfolios were on the same wavelength this week, with a deeper dive into inflation and more importantly what some of the best investments you can own to combat inflation.
A good reminder about any expert opinions:
“Many economists agree that inflation is easy to identify in hindsight but is difficult to predict. However, they will admit that almost all instances of inflation share one common trait: inflation is caused by an increase in the money supply in an economy.”
With inflation here, this is how to generate retirement income.
Is the traditional 60/40 stock/bond portfolio dead? Some believe so:
“Thanks to the declining returns of bonds, the model 60/40 portfolio may eke out real returns — after inflation — of just 1 per cent-2 per cent a year over the next decade, said Lim Chow Kiat, chief executive officer of GIC.”
Ben Carlson believes hedging inflation is not exactly easy.
“The truth is no one ever really knows what’s priced in and that’s what makes short-term investing calls so difficult.”
The Humble Dollar suggested higher inflation could be here for the coming years (not months).
What say you reader??
Settling Nomad made some nice progress on their investment journey.
Reader question of the week:
I hope you’re having a great summer. My question is: how often do you really / honestly check your portfolio?
Thanks for your question and readership.
Honestly, probably a couple times per week. Not so much looking at my portfolio to trade of course, let alone buy all the time, rather, just to see what is going on and how any reinvested dividends are flowing into my accounts. I simply love watching those dividends compound away!
Enjoy your weekend!