Weekend Reading – Making your money last, zero-fee ETFs, promo codes for investing and more
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.
Amongst more work of late, I found some time to post these articles on my site:
Want to learn how to Beat The Bank? Read on here for my book review and giveaway! Of note, I hope to have the author of Beat The Bank Larry Bates on my site for an interview in the coming weeks. Any questions you want me to ask Larry? Share in a comment.
I took a departure from writing about stocks, ETFs, real estate and others stuff and wrote about feeling financially trapped of late. Have you ever felt this way? If so, what did you do to get out of your rut?
Congrats to Marc who won a copy of this book for my latest giveaway. Marc, your book is in the mail; thanks for being a fan.
Enjoy your weekend everyone and see you on the site!
Rob Carrick interviewed retirement guru and actuary Fred Vettese recently. Fred Vettese’s top-5 recommendations to making your money last in retirement?
- Reduce your investment fees.
- Consider an annuity.
- Defer your Canada Pension Plan (CPP) benefits until at least age 65.
- Make adjustments to spending habits over time.
- Consider the “nuclear” option of using a reverse mortgage, if you have to later in life.
I’m a fan of 1, 3 and 4. Not so much of 2 and 5.
Million Dollar Journey announced his latest quarterly dividend income update. Always impressive – I mean seriously, almost $44,000 per year earned from your portfolio before age 40? Very well done Frugal Trader.
Ben Carlson discussed the psychology of playing the lottery. Why? Behaviours are tremendously difficult to change. “Many people in the financial world spend their time pushing square pegs into a round hole by trying to change ingrained human nature. Typically, these efforts fall flat because they don’t take into account how difficult it is to change behavior.” (Footnote: I see this in my workplace week after week after week.)
Considering weed stocks for your TFSA? This investor did and now he has about $130,000 to show for his efforts.
Fidelity has new zero-fee ETFs now. However…Fidelity still has a LONG ways to go to catch Vanguard when it comes to assets under management for certain ETFs. Vanguard’s Total Stock Market ETF (VTI) recently became one of only three ETFs to reach the $100-billion asset mark, joining iShares Core S&P 500 ETF (IVV) and State Street Global Advisors’ S&P 500 SPDR (SPY). The Vanguard S&P 500 ETF (VOO) has $90 billion in assets. I believe any of these low-cost U.S. funds are excellent way to follow the performance of the U.S. market. I also think there are great low-cost U.S. dividend ETFs to consider for income and growth as well.
From the Fred Vettese oldie but goodie file…an article for the Financial Post about DSC (Deferred Sales Charge) funds. He wrote: “Those fees are also rather opaque, especially when it comes to funds that come with a deferred sales charge (DSC). The DSC enables the advisor to get most of his commission upfront but means the investor pays a hefty penalty upon early withdrawal. It was only when I helped a friend sort out her investments recently that I gained a firsthand appreciation of the pitfalls. My advice is to pay close attention to fees, ask pointed questions, and stay away from funds with a DSC.” Couldn’t agree more Fred but some investors don’t know what they don’t know. Many more investors are too busy to care to know. Hopefully via reading this blog some investors will be inspired to ask some tough questions about the financial products they own, including who advised them or suggested them. That’s part of my passion that continues to fulfill this site.
End of summer reminders!
On the topic of lower-cost investing, here is a free trial to unbiased stock and ETF suggestions in Canada. Take advantage of this trial to learn about the best low-cost ETFs for your DIY portfolio with no obligation.
Use my promo code MYOCASH with BMO, so I can provide you with hundreds of dollars cash back when you open a BMO InvestorLine self-directed account.
If you invest online with BMO, you won’t pay fees on your first $15,000 invested for a year. Make sure you use promo code MYOSF for My Own Advisor’s special offer when opening your BMO SmartFolio account.
See you next week for a new dividend income update and any other personal finance musings.