Weekend Reading
Welcome to my latest Weekend Reading edition where I share a collection of articles from the personal finance and investing blogosphere each week.
Here is my lone article from the week: some reasons to buy a used car instead of a new car (and why we did just that over the last couple of weeks).
Enjoy these reads and we’ll see you here again next week!
Mark
Jeff Bezos, Amazon’s CEO, is now the richest person in the world – largely thanks to surging Amazon share prices. Crazy right?? Where will it go from here?
InsurEye provided a timely article this summer, given all the rain we’ve had in Eastern Ontario anyhow. Here is home insurance and flooding policies in Canada finally explained. From the article, we own sewer backup. We do so given the premium for it is not expensive considering the consequences of a flooded basement without this coverage certainly could be.
New to investing? New to Exchange Traded Funds (ETFs)?
Read on about what makes a great ETF to buy and hold.
Capital Power increased their dividend by over 7% this week. Thanks for the raise while doing nothing on my end.
Canadian Budget Binder asked what are your sources of financial stress? Not so much a big stressor anymore but more of an annoyance is our mortgage. Based on our projected savings rate over the next ten (10) years (i.e., that will produce maxed out TFSAs and RRSPs) I’m not too worried about saving for retirement; although I do think about having “enough”.
Arbor Investment Planner identified 34 investment rules. One rule/attribute I like is this one:
“The most important attribute of successful investors is discipline in following a set of investment strategies and rules. In other words you don’t have to have a high IQ, a high education, extensive experience, or even great instinct.” Agreed, and I think most investors should likely take some time to figure out what kind of investor you are to determine what investment strategy best fits your beliefs, values and ability to stick with a long-term plan.
Do you know the combination of a high savings rate, time on your side, and high rate of return can be known as The Wealth Triangle? Here is a comprehensive guide.
Half Banked has some thoughts on financial planning.
Krystal Yee believed in a “savings first” plan to help fund her home ownership dreams.
Have a great weekend!
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've surpassed my goal and now investing beyond the 7-figure portfolio to start semi-retirement with. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Thank you Mark for including my 34 Investment Strategies and Rules to Make You a Better Investor in your Weekend Reading. You always have great reads and I feel honored to be included!
Thanks Ken!
I feel the same way not knowing if we will have enough money for retirement. Thanks for sharing Mark.
I don’t understand why you keep so much cash, on the long-run it can impact whether you will have enough money for retirement. At some point, 200k cash is a lot.
I would agree. Our plan has up keeping $50K (one year of expenses) in cash, that’s it. We’re not there yet but then again we are not retired.
No doubt you’re doing well CBB! Keep up the good work.
I get to start my Weekend Reading review early this week after a delightfully inattentive driver decided to gift me a few days off work, lovingly delivered to me and my bike with the side of his car. It’s a win-win for everyone!
re: Capital Power increased their dividend by over 7% this week. Thanks for the raise while doing nothing on my end.
Nothing except putting your capital at risk. Remember, nothing is ever free and it’s unwise to assume you are getting something for “doing nothing”. As well, and it’s been well documented, dividends are definitely not “free”, they are basically a chunk of the stock price delivered to the stock holder instead of retained by the company; you are paying for your dividend with a lower stock price.
re: Jeff Bezos, Amazon’s CEO, is now the richest person in the world – largely thanks to surging Amazon share prices.
Amazon is a weird company. Interesting to note that for the first 10 years the stock did nothing…all the gains have come in the last 10 years. More interesting is the starting point of those insane gains — 2008/09 post-Meltdown. You can speculate on what that means. Also yet another example of concentration building wealth vs diversification protecting wealth (i.e. you don’t get rich holding index funds).
re: 34 investment rules…most investors should likely take some time to figure out what kind of investor you are to determine what investment strategy best fits your beliefs, values…
From Carl Richards: “Find out who you are and what you want. Then you can stop wasting your life energy and your money on stuff that doesn’t matter to you—and start making financial decisions that will get you to your true goals.” Agreed. But most people don’t know who they are and/or what they want so it’s a mess right out of the gate (e.g. no need to chase arbitrary index benchmark returns if that’s not what your life requires). I guess that’s why the financial sector has a tentacle death grip on almost all income earners, easy to sway a mind which has no set course. This ‘rule’ not only applies to investing, but perhaps more importantly, spending.
Ouch man. Sorry to hear. Hope you are OK? There are of course very bad drivers out there but then again, everyone things they are average at everything.
Speedy recovery!
Well, I’m not actively doing anything with CPX. How is that? Certainly my capital is at risk but that’s true with any investment – some more than others.
re: Jeff Bezos. I agree Amazon’s valuation seems way off but apparently people keep buying the stock making other people rich. You could say the same for Apple stock as well a decade or more ago.
Carl Richards seems like one of the good guys. Did you know he almost went broke after buying too much house? Interesting. Practice what he preaches.
This is a great list to read during the weekend. I definitely agree that you don’t have to be a genius to invest your money. I personally think that it takes more self-control and discipline to succeed in managing your money rather than brain power. I also think that the average person has one great advantage over the professional – you only have to answer to yourself. Hence, there is no pressure to take unnecessary risk to inflate your performance.
Comments working now Leo 🙂
I believe to be successful in many things you’re better off with higher EQ than IQ. Investing requires discipline and a plan – it actually doesn’t require very much brain power unless you want to do your own taxes, estate planning and some actuarial-like calculations.
Thanks for sharing the links, Mark. Some interesting names popped up in this article. Never heard of CPX before, will need to check it out and looks like that yield is through the roof….looks ominous actually. Some interesting names from the Norm Rothery article as well.
cheers
R2R
I like the increase but I hope things are sustainable for sure with CPX. I own many utilities in the ETF XUT. Cheers.