Weekend Reading – Record dividend income, pot stocks and ETFs, $150,000 fines and more #moneystuff

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!

July 2018 Dividend Income Update

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 hereEnter for your chance to win this book!

a Rafflecopter giveaway

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.

Andrew Hallam wrote about high hopes for marijuana stocks or ETFs.

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…

Big summer savings deals and reminders!

Canadians can save HUNDREDS with the cheapest cell phone plans in Canada with Cell Savings Canada – don’t pay until you verify your plan and savings!  Eligible for all Canadians except SK, MB, and QC.

I can get you $50,000 managed FREE for one year thanks to my partnership with this leading robo-advisor (ModernAdvisor).

Here is a free trial to unbiased stock and low-cost ETF suggestions in Canada.

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.

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.

Mark Seed is the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've grown our portfolio to over $500,000 - but there's more work to do! Our next big goal is to own a $1 million investment portfolio for an early retirement. Subscribe and join the journey!

28 Responses to "Weekend Reading – Record dividend income, pot stocks and ETFs, $150,000 fines and more #moneystuff"

  1. Lloyd (58, retired (but farm a bit), married, rural MB) · Edit

    ” 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.

    Reply
  2. RBull (59, retired, married, rural coastal NS) · Edit

    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.

    Reply
    1. 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.

      Reply
      1. RBull (59, retired, married, rural coastal NS) · Edit

        “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.

        Reply
      1. 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.

        Reply
        1. 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.

          Reply
  3. 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.

    Reply
  4. 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.

    Reply
    1. Lloyd (58, retired (but farm a bit), married, rural MB) · Edit

      “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.

      Reply
  5. 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.

    Reply
    1. 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.

      Reply
    2. 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!

      Reply
      1. “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.

        Reply
        1. 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.

          Reply
  6. 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.

    Reply
  7. 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.

    Reply
    1. 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 🙂

      Reply

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