Weekend Reading – Record dividend income, pot stocks and ETFs, $150,000 fines 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.
This was my article from the past week:
Some record dividend income was reported here!
In the coming weeks, I will be participating in a number of podcasts. Thanks to those bloggers and various media channels for reaching out to me – to get my take on various personal finance topics including how we’re realizing our financial goals as well. I will of course link to any podcast material on this site so you can hear what I have to stay. Stay tuned!
Enjoy this Weekend Reading edition and see you around the site!
Mark
Congrats to Sam who won a copy of this new book: Stocks for FUN and PROFIT. Your book is now in the mail!
As you know, I love to giveaway books here. This is one that is worthwhile for any beginner investor: The Smart Debt Coach. I reviewed a copy of this book here. Enter for your chance to win this book!
A reader asked me: what are you saving for? So I told them here.
Running out of money in retirement is a major financial fear of seniors.
Susan Brunner profiled Choice REIT. I think this REIT has huge potential in the coming years.
Should you invest in the cannabis industry? I would think if you’re going to, I would definitely keep the allocation to <5% of your total portfolio given the current sector volatility. Again, your investing decisions are up to you!
IIROC recently fined an advisor $150,000 for failing to act in his clients’ interests – that “generated large commissions for himself and his firm but reduced client profits”. Grease ball. Catch them all I say…
Partnerships and Deals!
Thanks to my passion for personal finance and investing, some great companies want to offer deals. As a reader, you might as well take advantage of them although there is never an obligation.
Happy Investing!
Mark
Got questions?
Here is how I built my dividend portfolio (and how you can too).
For new investors here is some essential saving and investing advice.
Just starting out your investing journey? Here are some resources to get rolling.
Thanks Cannew. it must be a very nice facility.
Gary: $65-$85 is for Memory Care here in Edm
re: IIROC recently fined an advisor $150,000 for failing to act in his clients’ interests
1 — the advisor had zero legal obligation to act in a client’s best interest — that is, there is no actual fiduciary requirement.
2 — considering the dismal investigation & prosecution rate of IIROC (11% & 3%), kudos to them for nailing this guy. That said, considering the dismal collection rate of IIROC (16%), I doubt any, or very little, of that $150,000 fine will be collected.
3 — said shifty behaviour was done whilst in the employment of a Big Bank (TD), yet the bank assumes zero responsibility? There was no internal red flags for FIVE years?
4 — there was $375,000 in commission generated yet the fine is only $150,000? Sure, some of that commission was refunded, but who keeps the other 50% — the Big Bank?
It’s all a bit of a joke, really. And compared with other industries which factor in fines for illegal activity in their “cost of doing business”, rule-breaking investment advisors are small potatoes.
re: long-term care
We have to remember that Canada is a quasi-Socialist country with a history of doing what’s “best” for the people. The government of the day could very well interject with senior care legislation which might not be pretty or popular but may reduce the health care tsunami.
Sorry, you ended up in SPAM-land likely because of your “quasi-Socialist country” comment although I don’t know for sure. The software is obviously very sensitive 🙂
SST commenting under a pseudonym…seems MOA won’t let me post…(a hint from the Universe perhaps?).
re: IIROC recently fined an advisor $150,000 for failing to act in his clients’ interests
1 — the advisor had zero legal obligation to act in a client’s best interest — that is, there is no actual fiduciary requirement.
2 — considering the dismal investigation & prosecution rate of IIROC (11% & 3%), kudos to them for nailing this guy. That said, considering the dismal collection rate of IIROC (16%), I doubt any, or very little, of that $150,000 fine will be collected.
3 — said shifty behaviour was done whilst in the employment of a Big Bank (TD), yet the bank assumes zero responsibility? There was no internal red flags for FIVE years?
4 — there was $375,000 in commission generated yet the fine is only $150,000? Sure, some of that commission was refunded, but who keeps the other 50% — the Big Bank?
It’s all a bit of a joke, really. And compared with other industries which factor in fines for illegal activity in their “cost of doing business”, rule-breaking investment advisors are small potatoes.
re: long-term care
We have to remember that Canada is a quasi-Socialist country with a history of doing what’s “best” for the people. The government of the day could very well interject with senior care legislation which might not be pretty or popular but may reduce the health care tsunami.
Any senior eligible for CPP/OAS/GIS will never run out of money, they just may not have enough money to live they way they wish. Most provinces provide long-term care for those with low income, but there is a long, long wait list.
For those with other income or investments, long-term care runs in the $65k to $85k per year. If one looks to sell capital to fund the long-term care I’d be worried about running out of money or having to buy an annuity which will not keep up with inflation or the rising costs of the care. That also applies for those who rely on Total Return unless their portfolio has grown to a very large amount and they sell to take the profit. Many have homes which will provide additional funds to cover costs and most advisors will project straight line returns to show how they can safely meet their costs to age 85 or 90, but one market correction could wipe out the best laid plans.
If one invested for Income Growth over the years, their annual income could grow to meet those costs and continue to grow even after drawing down the $65k to $85k per year. Even if the income was not that high they would be far ahead of those relying on market growth.
geez cannew — $65k to $85k per year — that seems like a lot. what kind of institution is that? in ontario $1800./month gives you basic care — $2300./month semi private —- and$ 2600./month private. that’s a long way from $65 to $85k! you must be talking about a very high class care facility which would be out of reach for most of us.
I would agree Gary. I would think ~$3k per month is very good for long-term care. Anything approaching $5k per month would be first class I would think?
That depends I think cannew. re: “any senior eligible for CPP/OAS/GIS will never run out of money, they just may not have enough money to live they way they wish.”
I would argue with inflation there is no way CPP and OAS and GIS would be enough money to live from in retirement. I would think that type of income depending upon CPP contributions for many working Canadians, again, with inflation in mind might be close to the poverty line.
The good news for many Boomers is they will be able to cash-in on their houses if they need $400k, $800k or in some parts of the country, >$2M for long-term care expenses. GTA and Vancouver and even some parts of the Ottawa for the latter!
“I would argue with inflation there is no way CPP and OAS and GIS would be enough money to live from in retirement”.
It actually is depending on where you live and how you spend. In small town Manitoba, there are many of my clients (mainly women) who never worked out of the home, some immigrated from eastern Europe, some limited English even. After their spouse died, they live on his CPP (as they never contributed themselves) and maximum OAS/GIS. They live minimalist lives. Small home or subsidized senior’s block, don’t drive, plant gardens and preserve foods, eat simply(no caviar or lobster), rarely need to shop for clothes if at all, never travel except to their children’s/grandchildren’s for birthdays and Christmas/Thanksgiving, medications are paid by province after they meet their deductible, etc..
It’s doable, and they still plan to leave a little inheritance for the kids or grandkids. Frugal, thrifty, whatever you want to call it, you can live on very little if you have to. But it’s not always pretty.
I guess I was thinking in context of my generation (Gen X – behind Boomers) and what’s to come. I can’t possibly see how we (G Xers) will be able to live off $2,000 or so per month with CPP and OAS + GIS. Our tax hit is coming (to support healthcare, other) and the cost of quality is only going to increase from here.
I’ve seen this myself, for the aged, right now but I guess I’m not convinced it’s a sustainable model Bonnie.
With the $150,000 fine, one wonders how large their portfolio were. One acct. was charged $250,000 in fees, the other $150,000. At $30 per trade its 833 to 1667 trades per month over the 5 year period mentioned.
I might have 5 to 10 trades per month, all dividend reinvestment with No fees attached and No MER charged on the portfolio. Just growing income with no fees.
“I might have 5 to 10 trades per month”
I’ve had two billable trades this year so far. For the TFSAs. Everything else has been e-series purchases using up orphaned cash from the synthetic DRIPs so I do have some management expenses.
Div growth cut from 8 to 4-5 and we just got 4.9. If we can get that I will take it.
Lots of debt in rising rate environment and very expensive p/e, weaker 2nd qtr report.
Still I just bought a little more. Arguably they could be reducing debt not paying more to shareholders.
Bought it for growing dividend and long term moderate growth so hold for me.
I think we’ll see more of this, slower growth over time from many CDN stocks and utilities. I will continue to hold and reinvest all dividends paid.
Any comments on Emera? Down 6% in two days. Div growth cut from 8% to 4%. Sell or hold?
I am holding. All my Emera in water now as I just began to buy last year.
I’ve been burned by pipelines, utilities, etc. In the past so I stick with ZWU. Bought on the dip this year, dividend over 5% and well diversified.
Check that, divie over 6%
That’s a covered call one from BMO right purrfect?
It holds many of the stocks I do already as common stocks: ENB, PPL, VZ, DUK, T, TRP, FTS, T, IPL, etc. I suspect that collection of stocks will make money (lots of it) for decades to come.
Great time to buy more stock, when things tank or dip – no? 🙂
Personally, I’m holding and continue to DRIP. That’s just me though!
I agree about the lax on anticipating needs, and the expected difficulty find long term care.
If I read that survey info right 20% of people over 60 work. Seems low. And 3/10 of those work because they have too? That = 6% of over 60’s work because they have to. Seems low again, and if right much less of an issue than I thought. 1.2% of over 80’s work(.2 x .06) ! Or maybe I’m interpreting some or all wrong.
Choice Reit- sold my CDN REIT right before deal was done. Wasn’t sure about the limited number of eggs in that basket. Pretty much a Superstore tenant story and exactly what is the relationship now? Numbers decent, may have to dig into it further.
Invest in maryjane stocks, not so far. Maybe, maybe never.
I would think long-term care is a HUGE wildcard. Very difficult to predict. Well, everything is.
Yeah, the statistics are not well defined in my opinion.
Choice REIT is now the largest in Canada and I anticipate that will give them monopolistic advantages in the coming years.
The pot stocks are something I’m curious about to be honest but I’m simply not sure how to approach this.
“everything is”….yep.
Health care crisis is probably right. Lots of issues and causes- not enough doctors & specialists, nurses, ridiculously long wait times for eveything from emergencies to many procedures, family physician availability, poor personal health/responsibility – terrible eating & activity habits in all generations, expensive drugs, inadequate home & seniors care, demographic (aging population) etc etc. But mostly costs are spiraling out of control at rates wildly beyond inflation = not sustainable…at least here.
Could be with Choice…. a moat. Much of the results though with lie with managements ability to leverage that strength, into earnings & div. growth efficiently and effectively long term.Few reits have div growth and I like that.
I don’t know either. Probably will be some serious winners in future along with lots of dogs. Not seriously interested or concerned right now as companies don’t really fit my div growth priority/ core stable businesses with more moderate growth.
Sorry…this comment ended up in SPAM-land for some reason.
” fear they won’t be able to pay for long-term care.”
More than likely, many of us will not be able to find long-term care if needed. We have been woefully lax in anticipating the need us Boomers are going to cause. I suppose one can hope that global warming will wipe out a lot out a lot of us.
Well, let’s hope the burden isn’t insane. The healthcare crisis has started I think.