Weekend Reading – More dividend hikes, average debt, lower robo fees and more #moneystuff
Welcome to my latest Weekend Reading edition where I share some of my favourite articles from the personal finance and investing blogosphere.
I went a bit crazy on the site this week posting a number of articles:
Should you change your ETF strategy as you get older? Maybe not as much as you think.
Enjoy your weekend and see you here again next week!
Doug Hoyes mentioned it’s not the technical part that we’re getting wrong when it comes to debt (i.e., how to make a budget), it’s our behaviours.
From Doug: “It’s not how much debt you’ve got, it’s what you’re paying each month.” – that you really have to pay attention to. I know in our case, the latest 0.25% interest rate hike added about $10 to our bi-weekly mortgage payment. I’m really looking forward to becoming debt free someday. That will be immensely liberating.
Enbridge Inc. recently announced they are suspending their dividend reinvestment program and share purchase plan, known as a DRIP, effective immediately. That means shareholders will not be given the option of automatically having dividend payments in the form of additional shares. Wise move? Very much so in my book given where markets might be headed (?), the need for Enbridge to get some debt under control, and given DRIPs are normally used to maintain demand for a stock price in times of market turbulence.
Questrade decided to slash their fees for their robo-advisor services. “For investors with more than $100,000 of assets invested, that fee drops to 0.2 per cent.”
This Financial Independence, Retire Early (FIRE) stuff remains interesting to me but it’s definitely not something I’m chasing. Besides, I prefer FIWOOT – Financial Independence, Working On Own Terms.
Andrew Hallam shares how to achieve FIRE (Financial Independence, Retire Early) with stock market crashes.
Fall savings and deals for My Own Advisor readers!
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Millennial Revolution provided some advice for any market crash. “Investing in the stock market using low-cost Index ETFs is simple, but it’s not easy. I mean, when stock markets are just rising every day it’s easy. But when it’s plummeting, that’s when you figure out if you have what it takes to do this. In fact, if you’re still in your accumulation phase you should be jumping up and down from joy because now you’ll be able to pick up stocks that are on sale.”
Thanks to a passionate reader on this site, interesting article here about the inverse relationship of pension commuted values and interest rates. “We believe that taking the commuted value of a pension, if you are lucky enough to be able to do so in today’s interest rate environment, is something to consider strongly.” Therefore, in a low interest rate environment it might be a very good time to consider “taking the cash”. Then again, if you have health benefits tied to your pension you might want to reconsider. Predicting the future is hard!
Monitoring your credit scores can help you become better with credit. Like chocolate, credit is just fine in small doses as long as you don’t take on (eat up) too much. Here is some information about credit scores, including how they are calculated here in my 101 post.