Weekend Reading – Tax Free Investing Power edition
Welcome to my latest Weekend Reading edition, where I list some of my favourite finds from the personal finance and investing blogosphere.
In case you missed the last edition, the Financial Stress Index edition, read on here.
A Happy Belated Canada Day to all my subscribers – I hope you had a good day overall. Lots of challenges for our country to work through…
A Happy 4th of July to all my American subscribers!
Matt from Dividend Strategy provided mid-year stats on the BTSX (Beat the TSX) Strategy recently. From the article:
“Every single stock is up on the year so far with total return on the portfolio (including six months worth of dividends) of 30.7%. That’s a 12.1% absolute advantage over the TSX60 benchmark’s total return.”
Peter Thiel, the luminary venture capitalist billionaire, has used a common personal retirement account as his own “$5 Billion Tax-Free Piggy Bank,” according to a new report from the nonprofit news organization ProPublica. Can you imagine that much inside a TFSA (Tax Free Savings Account)??
Well, while you and I will never have that much invested in our TFSAs, the results from investing inside the TFSA for years on end can still be quite remarkable as part of any wealth-building plan…
Assuming you started with today’s contribution room only, no gains over the last 12 years since account existence, and continued to invest inside this account, you could create some significant wealth over the next 20 years.
Simply put, don’t forget about the power of tax-free investing as part of any wealth-building plan. It is an absolute gift of an account to all Canadians!
Image with thanks to Wealthsimple.
In case you missed my articles this week:
I interviewed the guys at Stocktrades.ca about their top holdings and how they invest their $$$.
DGI&R shared some of Canada’s best moaty stocks. I happen to own a few from his list for that reason. By moaty we both mean “competitive advantage”, a high-barrier of entry to even to try and compete with these established companies, let alone thrive.
Here are some examples from his post: Royal Bank of Canada (RY), Canadian National Railway (CNR), and Enbridge (ENB).
Tom Brady admitted his “laser eyes” didn’t work for raising the price of Bitcoin. The seven-time Super Bowl champion in early May changed his Twitter profile photo to include “laser eyes,” which is what many bitcoin enthusiasts do to show their “laser focus” to push prices higher. Well…that didn’t work…
Bitcoin was also in the news in this making sense of the markets post by Dale Roberts and the team at MoneySense.
The Big ERN wrote emergency funds are still useless.
Financial Independence – Retirement
As part of my ongoing commitment to share some financial independence, early retirement or retirement articles from the blogosphere, here are some links!
What is a financial plan and what should that cover? Read on in this comprehensive post about the elements of a financial plan.
On Cashflows & Portfolios, we outlined the Three Pillars of Canada’s Retirement Income System. Make sure you know how each pillar can apply to your retirement income journey.
There are also dozens of Retirement stories and essays you can learn from here.
Financial Mechanic lost $70K in a month of investing. Did she give up on FIRE?
Enjoy your weekend!