Weekend Reading – Saving $62,000, investing lessons learned, XUU for TFSA, 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.
As 2020 comes to a close (and good riddance??), I hope you and yours continue to be well during a very trying year as the holidays approaches.
Best wishes for your upcoming holiday season if that has already started for you, but more on that next week!
‘Till then, have a great weekend 🙂
Dan Kent and the team at StockTrades.ca highlighted some of their favourite stocks to buy in Canada – now and going-forward.
Here are some great, simple investing lessons learned from the pandemic. From the list, I particularly liked:
- You can’t time the markets.
- Stay diversified.
Definitely agree with the first bullet – which is why I stay invested.
I also think you should learn to live with stocks!
On the second bullet above, re: diversification, I’ve really started to narrow my choices for 2021 TFSA investing. To help with diversification, I’m tempted to buy a small slice of XUU amongst other stocks.
I like XUU because it is a lazy, low-cost, diversified way to invest in the U.S. total market. While the future is always totally unpredictable, (if COVID-19 has taught us anything at all…) should last 5-years or more repeat for XUU, annualized returns should be positive and closer to 10% than 0% over the next 5-years ahead. That’s my bet.
You can find XUU among my top ETFs to invest inside your TFSA below:
What else might I buy for the TFSA??
Keen readers in the comments section of this blog on some recent posts will notice I have also considered buying a bit of ZQQ (BMO product) or XQQ (iShares product) with any upcoming TFSA contribution room; instead of XUU. Who knows? I might do that. ZQQ and XQQ are essentially the same products from different providers. The management fee for these products is modest (0.39%), and each product is design to track the performance of the Nasdaq-100 but in Canadian dollars.
What might you buy with your TFSA contribution room in 2021?
Although “savings” to a point are fine, there are other great things you an do using your Tax Free Savings Account (TFSA).
How To Save Money wrote about getting a first class flight – something I aspire to have enough points for in another 5 years.
Nice work in Ben Carlson’s post – his lessons learned from 2020 when it comes to investing.
Key highlights from his post me:
- If it’s in the headlines it’s too late (to outsmart the market).
- The stock market has the ability to make you feel like an idiot and a genius in the same year.
Clearly A Purple Life has saving and investing figured out. Kudos to this former high income millennial earner (now early retiree) on saving $62,000 this year.
In one of Robb Engen’s recent Weekend Reading editions, he highlighted the research of Dr. Bonnie-Jeanne MacDonald, Director of Financial Security Research at the National Institute on Ageing, who wants to change the conversation around when to take CPP. Her latest research looked at the substantial (and unrecognized) value of waiting to claim CPP/QPP benefits – upwards of $100,000 (on average) to retirees who elect to defer their benefits from age 60 to age 70.
You can find some case studies on my dedicated Retirement page about when to take CPP.
Dale Roberts tried to make some sense of the markets this week – discussing the Nasdaq, any upcoming Santa Claus rally, Bitcoin and more.
In case you missed some of my latest articles…
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