Weekend Reading – Last minute RRSP season reminders, U.S. dividend kings, best robo-advisors 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.
I was travelling and on vacation in Belize over the last week + so this edition is coming out a little later than expected!
RRSP season reminders
While many articles will continue to tout that “RRSPs are a tax grab” I certainly don’t feel that way.
Here are some reminders why the RRSP is an excellent account to invest in this tax year and beyond!
In only a few instances in your asset accumulation years, such as earning a lower income for prolonged years, could one legitimately argue “RRSPs don’t matter” to them.
Stock market calamity
A few readers have emailed me and commented on Twitter about the recent stock market calamity. Meaning, what to do, their portfolios are down significant percentages, should they cash out some stocks now, etc.
My take: this is normal.
In fact, the market is almost identical to early October 2019 levels. I will prove it below. So, essentially, if you weren’t thinking the sky was totally falling in October 2019 then you shouldn’t believe that now.
Regardless of what the market is or isn’t doing, you really can’t control it anyhow if you want to invest in it.
If you are thinking of selling some of your assets, namely stocks, fine, but a reminder that your equity risk tolerance is not as high as you think it is and you should be invested in more cash or bonds or fixed income going-forward. You are welcome to change that approach now if you are significantly worried at night.
For our plan in the coming years, here is how much cash we intend to have (and how much cash you should consider keeping) including riding out some challenging times like these.
In summary, this is what I think of the recent market correction to date in terms of how I invest:
What are your reflections of the last few weeks? Worried? Is there more stock market calamity to come?
I hope to be back to my regular blogging schedule in the coming days. As I gather more content for my next post, I hope you enjoy this latest Weekend Reading edition. 🙂
Oh yes, do travel to Belize if you have the chance! So much to see and do and enjoy including the lovely morning views from any villa by the sea near the reef!
Rob from Passive Canadian Income has some last minute thoughts on the upcoming RRSP March 2 deadline, including what he did to borrow money for his RRSP purchases. For the most part, I’m not a huge fan of borrowing money to fund your RRSP investments since 1) interest on loans to invest in an RRSP are not tax deductible and 2) I believe if you have other debt (i.e., mortgage, car payments, other) that should killed or well-managed first. That said, Rob seems to be in a smart financial mindset where he diligently plans ahead.
Tom from Dividends Diversify shared the impressive dividend history of this U.S. dividend king I’ve owned for over a decade now.
The Money Geek believes you can be a financial slacker and still succeed, to a point.
MoneySense highlighted the best robo-advisors in Canada.
Rob Carrick provides some sensible advice for anyone wanting to achieve financial independence and retire earlier – stock up on stocks and stay invested in them. I’m with you Rob.
Dale Roberts rightly complained that Deferred Sales Charges (DSCs) on some mutual funds are not going away fast enough.
I fully agree. I wrote about trailer fees going away myself albeit kicking and screaming. Please don’t invest in these products!
Giveaways and Deals!
Don’t forget as part of my Weekend Reading you can enter to win FREE TurboTax software to help you with your tax needs.
Even if you don’t win the free software codes and you want to get started on your taxes now, don’t forget just by being a fan of this site you can take advantage of my 15% discount on TurboTax Canada software until April 30, 2020. Awesome right?
RRSP season investing with low-cost ETFs
Already made your RRSP contributions? Great!
Have a great weekend. Happy investing!