Weekend Reading – Kids these days, ETFs, tax-deadlines, the next market crash 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 this past week – during a very challenging work week:
We hit a new high in some key retirement accounts here as part of this dividend income update.
I wondered how millennials (as a target), my cohort (Gen X) and Boomers feel about the latest uprising of millennial bashing.
It’s been a long week…many, many long weeks in fact during some trying times at work*. I need to decompress so I’m quite thankful it’s Masters time and the weekend!
*Assuming I can hold onto my current job, my wife and I anticipate we might be able to start part-time work at age 50 (just over 5 years from now) but that’s a big assumption. I go through cycles with work (should I change jobs??) from time to time. Some weeks, some months my work is both enjoyable and rewarding. Other times I want to jump out of a window. OK, I won’t do that…but you get the idea. I will continue to press on because I believe in the work and we have some great opportunities ahead with the changes I am supporting….but…it doesn’t make change easy sometimes…
How do you deal with rough days or weeks at work? Let me know. No doubt you have some guidance to offer me and you’ve been there too.
Again, it’s the weekend so get out with family and friends and enjoy it. I certainly will.
Thanks to the team at StockTrades.ca for peppering me with questions – lucky I had some answers in this interview with them here.
Interesting article here about online and video-based learning about Exchange Traded Funds (ETFs) for financial professionals. I just hope completing a video does make people think they are an expert.
Million Dollar Journey shared some income tax filing tips.
Andrew Hallam wondered if you’re ready for the next market crash. I think…so?
Big Cajun Man suggests you avoid becoming a serial refinancer.
Deals and reminders
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Thanks for your feedback, they are all helpful. I will be moving my RRSP to a discount brokerage soon, and do more research before deciding what stocks and/or ETF’s to buy. Since this is a registered account, I don’t have to worry about gains or taxes if I buy ETF’s when time comes to filing returns?
I have to go back and find those posts where you mentioned tax implications if one owns US$ stocks and ETFs, and all the differences whether it’s RRSP or TFSA vs. non-registered accounts etc. It’s pretty complicated for me and I still have to wrap my head around all of that. 🙂
If you have an RRSP at one financial institution and wish to move it to another, you should be able to move your RRSP rather easily…
(Now the institution you’re leaving won’t be happy probably…but too bad…it’s your money.)
1. They can charge you a transfer fee. Ask about that. If so, get the receiving institution to cover that fee – demand it 🙂
2. Fill in paperwork.
3. Make sure you understanding the entire process before you sign any paperwork.
4. Keep copies of all assets/holdings, in just case.
5. The transfer make some time but you still want to ask your new financial institution about when you should expect your funds to arrive.
6. Monitor your account.
7. If money and assets hasn’t arrived by the time they said it would; make follow-up calls.
Here is a summary of the tax implications I’ve learned, not advice, just what I have learned!
I’m new to this type of investment after buying either into mutual funds or having accounts managed for the past 20+ years. I would now like to do this myself, so I apologize that my questions are rudimentary.
Does full-drip mean it includes spp or is that something totally separate? I thought I understood it to be two types: DRIP – no auto re-investment, and full-DRIP with the re-investment. Can you please explain further as to why someone would want to do the SPP vs. without and the pros and cons of it? Can you drip with all dividend yielding securities including EFT’s?
I have been reading that investing in dividend paying stocks along with some ETF’s is a good way to save for retirement, is it still worthwhile for someone who doesn’t have the longevity of next 20 years?
No questions are stupid questions Sharon.
Check out these posts and page here:
Full DRIPs typically mean reinvested dividends with stock transfer agents. Synthetic DRIPs are typically done with discount brokerages.
As for longevity, I cannot answer that question really but what I can say is depending upon your financial goals and the drawdown plans you choose – you can have some options with dividend paying stocks or ETFs or both 🙂
Do consider plans before products though – once you determine your financial plan, products can follow:
and just to add…some (maybe all?) synthetic DRIPs only allow for whole shares whereas accounts with a transfer agent often allow for fractional shares. With TD (synthetic DRIP) I always have what I call *orphaned cash* after the DRIP. Once it hits a hundred bucks I chuck it into one of the e-series funds.
I was trying to check out your first two links in this post, retirement accounts and millenials but they both directed me to the same article about the Millenials.
Sorry Sharon. Are there other topics you are interested in? You can likely find them on my Archives page, you can do a search in the top right of the site, or you can ask me questions!
Mark, the days when everything seems to go wrong – I do nothing. I do not make a decision and I do not take out my stresses on others. I realize that I work to make money and money allows more time for me to spend with my wife – that gives me the most joy in life. Each day for 15 minutes, I look out my home office window at the trees and think of how I can improve my life. Sometimes, I close my eyes for a few minutes and say 3 things I am thankful for. Today, I can manage stress much better than 10 years ago – just by not allowing any person or event distract – who I want to be. There is always a tomorrow and a next week.
I’m getting better at stress management but I feel I’m far from ideal or a role-model to copy. I like accomplishing things and when I can’t, especially when I have no control over the situation, it’s very frustrating.
I’m learning that is only work, I do my best, focus on what I can control over and let everything else go – I need to for my mental and physical health.
Thanks for the comment!
I echo the sorry about work comments. Wishing you the best with making more highs with the job.
Good job on the interview.
Andrew Hallam had a good parallel with Floyd Landis and the US market. The shoe will drop and those accumulating and/or being patient will eventually benefit. For retired people with a large enough stake to generate good cash flow to ride over any bumps is indeed fortunate.
Interesting points about the farming/gardening Lloyd. You’re right its relaxing and soothing even on our small scale 300 sq ft garden. Atlantic Giants- ha- Howard Dill is well known around here. G/L
Thanks…the guys over there asked me tons of questions!
I will miss some gardening when we move to the condo in a couple of years. Maybe I can do some work on the rooftop for the residents.
Ha, evidently they did pepper you hard with questions. That means they respected you and you offered valuable input.
That’s an idea with rooftop possibility. Or maybe there is some kind of communal garden in the city near enough. We have them here.
“that is only work, I do my best, focus on what I can control over and let everything else go”
Yes. For as long as I remember this has been a key tenet for me – a modus operandi
Thanks for the input and support. Gotta stay +ve.
We are about the same age. I don’t like my job. It’s stressful and unpleasant (i deal with people in my line of work). However, i have to stay on as i am unemployable in other fields. Also i have experience in my current field which makes it difficult to walk away (higher salary). Thankfully i am able to go part time in my work (choose contracts of 50 to 80% on a yearly basis) also i keep my expenses low (no car, renting/sharing house with flatmate etc.) any leftover money i invest in DG stocks to get more dividends. I foresee working part time from now till retirement. Full time work unless i am bored of not working enough.
I enjoy my job but some days are rough. I just need to work through them better. I hope to start some part-time work in another 5 or so years, that will be ideal but lots of things in our financial plan need to come together for that to occur. Time will tell as they say!
Thanks for the inclusion this week, the serial refinance is usually the start of the personal finance death spiral, ending with bankruptcy.
Thanks for letting us interview you Mark! Always a pleasure. Keep up the great work
Will try! 🙂
I used to unwind from rough days at work by spending the weekends planning our family vacation for the year. Searching for pictures/videos of our vacation destination and local food always put me in a better mood. An ice cold will help too. 🙂
Hope work will become less stressful for you soon. Have a good weekend.
That’s what I do…I make time to research vacations for us 🙂 Thanks for the comment!
“How do you deal with rough days or weeks at work?”
Sorry to hear of the problems/troubles at work Mark.
When I was a lot younger (and single and up North) it was drinking, partying and outdoor stuff (fishing in the summer, snowmobiles in the winter). The YOLO movement hadn’t been invented yet but that’s what it was. Once I got a little older, the body couldn’t do the things I asked of it so I gave that up. Moving south and doing the farm stuff was/is a great distraction.
It has been my experience that some of the most laid back folks I’ve ever encountered have been gardeners. For some reason they are just more relaxed than the average person. Even in the winter, they are thumbing through the old seed catalogues whilst waiting for the new catalogues to show up in. They’d be getting their seed starter paraphernalia ready and planning their gardens complete with graph paper (and always to scale!) Something about working with soil just soothes the soul. Turns out, that “something” has a name. Geosmin. Wonderful stuff. This summer I’m gonna get on that bandwagon. I’m thinking pumpkins, maybe even some Atlantic Giants!
It’s fine Lloyd…I suspect most folks have bad days at work. It happens. I simply want more highs than lows but at this point, there are more lows and tough days. It will get better and I know myself and skills well enough that if I really need to find something different – I will.
It’s been so long since I felt like Andrew Hallam, where I’ve worried about market adjustments, I’ve forgotten that most people don’t feel as I do. Certainly every thing he says is fine, but his mindset is locked into “The growth of the investment” and how a Market correction will reduce its value.
My only concern, and I’m not really worried, is will my Income be affected by market adjustments? I’m betting, based on previous corrections such as the 2000 and 2008/2009, that my income will continue to grow but at a lower rate. Very worst case, the companies will not raise their dividend. But again my Income will grow as I reinvest over half of my dividends which will buy more shares at a lower cost and continue to increase my Income. Dividend cuts? yea, a possibility but the whole economy would have to crash before I’d likely see any of the companies I hold cut their dividend (Banks, Communication, Utilities and Pipelines).
“It’s been so long since I felt like Andrew Hallam, where I’ve worried about market adjustments, I’ve forgotten that most people don’t feel as I do.”
You’re in great financial shape – kudos to you and your plan.
Like you I will continue to hold my bank, utility, pipeline and telco stocks regardless of market/stock prices.
I also enjoyed your interview with StockTrades. 🙂
That was a good Interview with StockTrades. Can’t think of what else you might have added.
Thanks cannew 🙂