Weekend Reading – How much cash, Cashflows & Portfolios, new names for emergency funds and more!
Welcome to my latest Weekend Reading edition of 2021 where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
If you somehow missed out on my last edition, including interviews with Mark Noble, Executive Vice President, ETF Strategy at Horizons ETFs about the Horizons ETF line-up and LegalWills on the importance of having a Will – please check out those articles and much more – here you go!
Enjoy these articles and any takes on them – have a great weekend and see you in the comments section!
I agree Tom and financial expert Rob Carrick on this discussion during one of the latest Maple Money shows. There will be years ahead to do the complete autopsy on government programs launched during the pandemic. But let’s cut some politicians some slack, they were trying their best with antiquated processes and systems (that they did not personally design), and they are still trying to do what they can to keep the economy and our healthcare system afloat. I don’t personally agree with all the decisions but I want to support them and abide by them to see things through…
Tom, you mentioned a 12-month emergency fund in your chat with Rob. Interestingly enough, this is where I am trending in a few years – since this is my comfort-level in semi-retirement. I’ll have more on that in a reader question of the week below!
Interesting post about the downside of paying off your mortgage from Financial Samurai. Sam cites one of the major drawbacks in the U.S. is because mortgage interest is treated like a business expense for rental property AND it’s also a tax deduction if it’s your primary residence. “The higher your tax bracket, the more valuable the interest expense” but not so in Canada for your primary residence.
I personally don’t see any major downsides to paying off your mortgage (and having no debt for most people) since if you’re still working, you can redeploy that money for investing and future retirement purposes.
Although I cannot compete with Sam and his outrageous passive income stream (which is over $300,000 USD per year by the way – not a typo), I can say my mortgage rate is lower than his at 1.69% vs. his at 2.125%. I’m even lower if you factor in my CDN <> USD exchange rate. So there!
The Sunday Investor shared some awesome data recently about dividend growth investing. I’ll let you subscribe to Geoff’s newsletter so you don’t mind out on his high-quality content!
Image courtesy of The Sunday Investor.
What I like about Geoff’s recent reports, he has a way of showing the data that aligns to these investing principles:
- If you’re going to skim the ETFs to own the some of top stocks in those funds, like I do, focus on companies that consistently grow their dividend and avoid chasing dividend yield. See my Dividends page for many of the stocks I own and why. Not all of my selections are winners but many do just fine.
- To ensure you don’t get burned by any one dividend paying company, as good as they may seem at the time, diversify – own many companies in many sectors should dividend cuts or worse occur.
- Dividend investing can work for buy-and-hold investors who have discipline. Otherwise, if you are concerned you may trade stocks frequently, then just index invest. I’m doing more of the latter myself.
Sam (who follows me on Twitter) from My Dividend Snowball highlighted his top-10 stocks to buy in 2021. I happen to agree with many of them including BlackRock, Algonquin Power, and Brookfield Renewable in particular. BlackRock (BLK) in particular is on a tear….
Here are some great blue chip stocks to consider owning from Million Dollar Journey.
Dividend Hawk released some impressive income from his portfolio and his FI goals for 2021.
Fascinating read about this 30-something engineer who refuses to sell any Tesla stock. I mean, can’t really blame him given his bias for the stock with the glorious returns.
Cashflows & Portfolios!
In last week’s Weekend Reading edition, I hinted about a new venture I’m taking on. Well, that site is now live!
Check out and subscribe to Cashflows & Portfolios.
Although this site is in the very early stages, with many posts, tools, content and services to come, I believe it will evolve to be an essential go-to resource for any saver or investor – at any age. Along with my partner on the site, we aspire to build a site and a community over time that will show Canadians how to build a simple but responsible investment portfolio that can generate wealth over time.
Whether you’re in your 20s or 30s (and just starting out when it comes to saving or investing), we’ll explain the principles we used about cash flow management for investing purposes. There will be tools and case studies and more for you to access, to tailor your own path.
Should you be in your 30s and 40s, busy raising a family or managing a career or both, we’ll outline some of the steps we took (and continue to take) to manage our portfolios such that you can avoid our investing mistakes and go directly to portfolio simplification and wealth-building.
Finally, whether you aspire to retire earlier than most, enjoy semi-retirement in your 50s or 60s, or just dive into full-on retirement because that’s your goal, we’ll share tips, considerations, case studies and more on those as well to answer pre- and post-retirement questions.
This site is for information and awareness purposes at any age. We want it this way because we would have wanted something like ourselves years ago…
Beyond just investing and portfolio management, the site will also explore other topics we’re working through in our personal lives from time to time. We’ll do that because we know it’s also important to preserve or pass on any wealth you’ve worked so hard to build!
Although we have lots of things to build and publish in the coming months, we wanted to kick start your subscription to Cashflows & Portfolios by offering up a $100 gift card to one lucky new subscriber.
Check out the site and our first post – why we believe Cash flow is king.
This raffle will be open for the coming weeks as we slowly put up some content up on the site for you to takeaway and provide feedback on. So, please subscribe, be patient, and stay tuned as we ramp up content, tools, case studies, reports, services and more.
I will of course continue to publish my own journey and much more on this site, as I always have. But it is my hope this new endeavour will help anyone cut-to-the-chase so to speak and offer concise and actionable information from beginning-to-end when it comes to helping Canadians save, invest, and manage any retirement money at any age.
Check out the site, and please offer any feedback on what you might expect and what you’re personally striving for. I’m looking forward to your comments anytime – I read every one.
Good stuff and framing by Larry Bates on MoneySense about wealth builders and wealth destroyers. I know for us, I’ve often focused on staying invested since rates of return are largely out of my control.
Hopefully your financial plan includes identifying and setting objectives (including your spouse or partner; agreeing on objectives), whether that be achieving financial independence (perhaps to retire early like I might!), ensuring your kids are getting a good education, and the list goes on.
Nice of Jon Chevreau to feature yours truly on his site when it comes to diversification.
Dale Roberts highlighted how many one-ticket solutions performed in 2020. Amazing results really!
Incredible work by Tawcan who invested a whopping $115,000 in 2020. Jeepers, citing many “winners” and “losers” in this portfolio.
Reader question of the week (Twitter)
Thanks for your question and will reply on Twitter as well!
You’ll read that it’s our desire to have roughly that 50/50 split of dividend paying stocks that deliver mainly income for living expenses and the rest, some low-cost equity ETFs that have a tilt towards growth in our portfolio at the time of semi-retirement. We also strive to have ~1-years’ worth of living expenses when that time comes.
Rob Carrick also recently touched on some potential new names for an emergency fund – because in his recent newsletter he believes the term “emergency fund” is….
“…too tired, too vague and too closely associated with an old school personal finance approach that was based on nagging people to do the right thing. We need better branding.”
I know what I would call it. Will share later as comments roll in 🙂
What would you call it as part of a re-brand? Or, do you still like the name: emergency fund?
Save, Invest, Prosper!
Thanks to my passion for personal finance and investing, some great companies want to offer deals. As always, never an obligation…
BMO will be back very soon with my personal promo code to use when opening investment accounts with them. Get cash back with them! Awesome.
Until then, there are other deals should you want to take advantage and explore them:
- With 5i Research, I’ve secured a FREE no obligation trial to learn about model portfolios, the best ETFs to own and more.
- You can get $50,000 managed FREE with ModernAdvisor.
- Sign up for commission-free investing with Questrade – that’s right, buy and hold ETFs for FREE.
- Grow your money – invest with Wealthsimple.
- LegalWills.ca now offers a unique code for 15% off any services – that never expires.
Happy investing and see you in the comments section!