Weekend Reading – Personal IPS, reader questions, DIY financial planning and more #moneystuff

Hi Folks!

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!

via GIPHY

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?

Why the 4% rule is actually (still) a decent rule of thumb

Enjoy the rest of these articles and your time outdoors or whatever you have planned this weekend!

Mark

On Cut The Crap Investing the coronavirus crisis doesn’t seem scare some retail investors. 

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. 

According to J.D. Power Questrade ranks #1 in Canada for self-directed brokerage customer service satisfaction. 

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. 

Partnerships

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Reader question of the week (adapted for the site):

Hi Mark,

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 Mark!

Great questions.

Thanks very much for the kind words. That stuff makes my day…

And yes, I like free stuff πŸ™‚

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.

This is my go-to RRSP calculator here.

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.

Morneau Shepell has a decent Retirement Income for Life calculator here.

Retirement Draw-Down Calculators

Here is a blogpost about Variable Percentage Withdrawal (VPW) and a link to a FREE portfolio draw down tool here.

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:

Cascades Financial Solutions – a small one-time fee that lasts for 30 days can be used. 

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!

Happy Investing,

Mark

My name is Mark Seed and I'm the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, we're very close to realizing two major money goals: owning a 7-figure+ investment portfolio along with no debt to start semi-retirement with. Find out how we did it, what's next, and what you can learn from me to tailor your own financial independence path. Subscribe and join the newsletter! Follow me on Twitter @myownadvisor.

5 Responses to "Weekend Reading – Personal IPS, reader questions, DIY financial planning and more #moneystuff"

  1. Thanks for the mention, Mark. I like how you included taxation and inflation in your personal investment policy statement – this is something I will have to revisit mine to include. We’ve had a taxation strategy ever since we had a $13,000+ tax bill one year. I just need to write it down and add it to our statement. Now hedging inflation is definitely an area I can learn more about.

    Reply
    1. To be honest I don’t have a detailed IPS for my wife and I on taxation and/or inflationary considerations. Another thing on my to-do list πŸ™‚

      All the best Maria and thanks for your support of my site as well.
      Mark

      Reply
  2. Nothing wrong with personal goals and setting benchmarks, but I prefer keeping things simple.
    1. Pay your bills
    2. Keep debt to a minimum
    3. Save as much as you can
    4. Invest for Income

    Reply
    1. Hi Cannew,

      Always enjoy reading your posts/replies. I am a retired senior and have always used a basic approach like yours. It has served me very well over the years.

      Reply

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