Welcome to some fresh Weekend Reading friends…I hope you had a good week. We’ve been on vacation and we’re back to the grind on Monday. I’ll have a future post about our recent travels featuring how we we save so we can splurge during vacation.
I managed to post one article over the last week – here it is – what I believe is the best budgeting rule of thumb. Do this from the start and you can pretty much live your life without worrying about spending needs or wants.
Have a great weekend and see you here next week.
- Save 10% (or more) of our net income.
- Keep a small emergency fund.
- Pay off our credit cards every month.
- Disaster-proof our life.
- Establish financial plans and revisit assumptions.
Freedom Thirty Five Blog says he’ll never be debt-free.
Here are seven ETFs for young investors.
A Wealth of Common Sense wrote about the greatest bubble of all time.
My friend Rob McLister believes now could be the time to lock-in your variable rate mortgage. Our mortgage rate is 1.95% so it would likely take at least a 50-basis point rise in lending rates for us to lose out over the next four years to a fixed rate mortgage. I understand where he is coming from but we’ll keep our variable rate for now.
Thanks to RateHub for including my take, along with other top bloggers, busting a number of credit card myths.
For the most Canadiana article of this week, a deer crashed through the window of a Kitchener-Waterloo Tim Hortons. It is unclear whether the deer left with a double-double coffee or not.
I was forwarded this old link – Warren Buffett on risk and volatility. Within the article there was another good reminder about the relative safety of equity investing over time; Buffett: “The unconventional, but inescapable, conclusion to be drawn from the past fifty years is that it has been far safer to invest in a diversified collection of American businesses than to invest in securities — Treasuries, for example — whose values have been tied to American currency.” The takeaway for you is: don’t confuse volatility as a proxy for investing risk – it’s not the same thing. Here’s my take on risk and volatility.
Investor advocate Ken Kivenko recently forwarded me the stats for this mutual fund – a mutual fund to avoid: IG Canadian Balanced Fund Series A. The stats? I think they’re rather ugly. As of June 2016: a person who invested $1,000 in this fund about 10 years ago would have $1,188 as of May 31, 2016. This is equal to an annual compounded return of approximately 1.7%. By comparison, the established Mawer Balanced Fund produced a 10-year rate of return of 7.9%. Ouch.
Boomer and Echo has some advice for Millennial investing.