Weekend Reading – LIRAs, more giveaways, Buffett on bitcoin, houses as consumer goods 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 went a lil’ crazy with the writing this week since I returned from my golf vacation in Fort Lauderdale. These were my articles from the past week – all three of them:
Here is our financial goals update. I’ll provide another update later this year.
What is a LIRA? What can you invest in it? What do I invest in? Read on.
Here is our April 2018 dividend income update – onwards and upwards as I always say.
I want to giveaway yet another book in my library. Enter to win my gently used copy of Wealthing Like Rabbits by Robert Brown. You can find a review of this book on my site here. I also interviewed the author a couple of years ago here.
(To the winner of the last giveaway, your book is on the way!)
Enjoy these articles, enjoy your weekend, and chat again soon.
Mark
Rob Carrick talks houses – are they an investment or consumer good? My take is they are both. A house is first and foremost a place to live. In buying one, you are also indicating this is an asset in your portfolio and you do expect the value of that asset to appreciate over time. Otherwise, if there is no intention to gain a higher profit from owning the home over time – you probably shouldn’t buy one. There might be better things to do with your money. So, in saying that, profits from home ownership may or may not happen due to your operating costs, borrowing costs and capital outlays to maintain the home over your period of ownership.
Interesting interview with Warren Buffett about bitcoin here:
Warren Buffett on bitcoin: “You can have anything you want to imagine if you look at something and say ‘that’s magic’ … they did it with tulips in the 17th century” pic.twitter.com/nAZOkL990Q
— CNBC (@CNBC) May 7, 2018
Telus increased their dividend this week, by almost 4%, their 15th dividend increase since 2011.
Canadian Financial DIY wrote about vulnerable investors including financial elder abuse.
I recently updated my Retirement page with some stories I forgot to link to about retirement and early retirement. I’ve also put some math on this page to show you how much (and how long) your portfolio might last. Just so you know, a $500,000 personal investment portfolio spending ~ $30,000 per year could easily last 20 years.
Take advantage of these saving and investing deals!
Have a great weekend!
Mark
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Hey Mark, I was wondering if you have or are considering a story on when to spend the principal in a TFSA? I started investing our TFSA’s almost from the beginning. I withdraw the monthly dividend interest and then add it back in at the start of the year by moving stocks from my RRSP to our TSFA’s. Since retiring 6 years ago at age 56, I have managed to increase our TFSA principal balances to over $80,000 each. Next year the principal will grow by over $11,000 each with dividend interest and the $5,500 yearly allowance. I’m thinking by the time we are 70 (8 years from now) we could easily have a total of $300,000 in TFSA principal. Then what? It would kill me to spend that nest egg, but it looks like I will die anyways without spending the principal. Grandkids will be happy I guess?
Why take out the monthly divs from your tfsa? – only to put them back in with $$ from rrsp act? Better to leave the $$ in the tfsa and drip. Seems like a waste of time.
Interesting question! I will likely spend the dividends from the TFSA in retirement but I’m not sure I will collapse the TFSA until my 70s or 80s.
I wrote about the order of drawing down our accounts here:
https://www.myownadvisor.ca/overlooked-retirement-income-and-planning-considerations/
Our TFSAs are both near $80k as well. I’ve long since considered them retirement accounts even though the financial industry at large does not.
I hope to draw down the RRSPs in our 50s and 60s to zero before taking any company pension currently worth about $28k per year for life.
“I’m thinking by the time we are 70 (8 years from now) we could easily have a total of $300,000 in TFSA principal.” Then spend the money then, at least the dividends plus some capital. Otherwise, very nice gift to grandkids!!!
Repeating myself, but the best Investing advice I’ve every received was from The Connolly Report:
“If a company doesn’t pay a dividend, don’t buy it. If it doesn’t grow the dividend don’t buy it either”. This basic rule got us to grow our Investment Income to the point where money is no longer a concern in our retirement.
Good rules to follow. I’m trying to do the same but only at $16,200 in my TFSA and non-reg. If I added in the RRSP it would be much higher but my goal is $30k from those accounts (TFSA and non-reg.) alone. We’ll keep picking away at things!!
The common attitude towards investing is “No new investor should go directly into stock picking. There is much to learn before one can fly.”
Maybe if one tries to meet the general standard of Beating the Market, but there is a simple solution if instead one seeks slow and steady income and capital growth.
I’m with you cannew. In a few years, I won’t care about striving to “beat the market”. My CDN portfolio gets market-like returns now and my income is growing for semi-retirement. That is good enough for me. 5-year returns for Mark = 9%. XIC benchmark ETF for CDN market = 7.7%.
re: Best financial advice I ever got?
Can’t say that I ever had anyone in my life who was financially savvy enough to give “best” advice. If I really had to pick it might be: If you can’t afford the maintenance, you can’t afford to buy it.
(From the article, Stephen Weyman says, “Amateur investors have no business trying to outperform investing professionals who have multiple degrees and invest full time.” He seems to think multiple degrees and a full-time job account for some magical combination of high performance. Someone should tell him that close to 100% of investing “professionals” don’t outperform the market either. Simply buy the market (or the majority of it) and you’ll almost always outperform those with multiple degrees.)
re: Houses — investment or consumer good?
House = 100% consumer good. Land = 100% investment.
Into the mid-20s here this weekend…finally!
I liked your land comment 🙂 All the best and enjoy the mid-20s!!
Do you think the markets trends can stay this way. I sure believe they are not very sustainable and must correct at some point. This post is great man highlights some important details.
Also take a peak at my blog! I posted about the possibility of a recession — http://www.thefinancialchallenge.com
Will do Cameron. Thanks for stopping by. To answer your question – I have no idea what the weather will be tomorrow let alone what the markets might be short-term or long-term. I do have confidence that companies that pay dividends for many decades on end, should continue to do so.