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.
Great day to be outside! I will be out there very, very soon!
Earlier this week, I published this post about the 4% rule. I feel it’s actually a very good starting point for you and me. Thoughts?
Enjoy the rest of these articles and your time outdoors or whatever you have planned this weekend!
Handful of Thoughts highlighted the benefits of a personal investment policy statement (IPS).
This blog is actually an IPS of sorts but I think there is value in writing up a more detailed specific post on this subject myself. Will add to my to-do list!
In a nutshell, I think an IPS should include the following:
- Guidance for decision-making
- A roadmap to goals
- Actionable steps
- Short-term objectives (savings)
- Long-term objectives (investing)
- Tolerance for risk
- How to navigate inflation and taxation.
What’s your take on an IPS? Do you have one?
The Sunday Investor continues to track his progress against the TSX benchmark fund XIC and shares his portfolio composition in the process. So far, so good. I really enjoy reading this sort of information. Keep it up.
Robb Engen highlighted how to tackle changes to your retirement income plan.
A Purple Life is targeting a mere three months to early retirement. Impressive.
I’ve got a partnership with Questrade for just that reason to help new or younger investors save more and earn more. See below should you wish to take advantage! With Questrade #1, BMO InvestorLine was second. I find BMO is consistently one of the top brokerages to deal with.
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Reader question of the week (adapted for the site):
I’m really enjoying the valuable content on your site. I like your DIY approach. I’m 53 and just started my journey to financial independence and retirement within the next 12 years. I feel I can manage most of my financial planning on my own with some professional help from time to time.
More specifically, I love how you have decided to take the bull by the horns and manage your financial plan and future on your own. Your site has provided tons of great information. Not to mention you’re Canadian! Who hooo.
Question for you. I’ve figured out I need just over $600K invested/in my personal portfolio over the next 12 years for a great retirement but I want to run some scenarios to see if that’s true. Any suggestions including free financial planning or projection tools that I can use myself? I know you like free stuff Mark!
Thanks very much for the kind words. That stuff makes my day…
And yes, I like free stuff 🙂
Here are a few resources, no affiliations at all, that are FREE that you might want to consider – see my Helpful Sites page:
Financial Planning Calculators
Not sure how to visualize your portfolio or backtest portfolio returns? This site is one the best I’ve seen at this – and it’s FREE. Check out Portfolio Visualizer.
Vanguard has an excellent retirement nest egg calculator.
Here is an excellent TFSA calculator here showing how to generate a $1 million portfolio tax-free.
Check out this rate of return calculator courtesy of PWL Capital.
Retirement Draw-Down Calculators
Here is an excellent RRSP/RRIF withdrawal calculator on TaxTips.ca.
I like this LIF minimum and maximum withdrawal calculator.
OK, beyond that (!), you can also check out the following solutions for some DIY work:
Solutions that cost you a bit of money:
Snap Projections – while targeted to advisors and planners – you can consider that solution for a few months to churn some numbers.
Beyond that, I happen to know a few solid planners and I would be happy to flip them an email for you and send their website information your way for a more comprehensive look.
I hope that helps!