Weekend Reading – Travel hacking saving thousands, steps to saving a million, personal finance blind spots 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.
Earlier this week, I published these articles:
I listed some of my favourite dividend paying stocks to own in Canada, but a fellow dividend investor thinks I should sell one of these stocks that has paid dividends for >100 years! Read on to find out which one.
I dug deeper on this one than other related posts – I shared my actual debt burden and what assets might be in our bank accounts as we approach some financial independence in the coming years. Thoughts on our path?
I have some great posts planned for the coming weeks leading into December so make sure you visit the site often to check them out. Don’t forget to share the word about this site with others! Every single visit on this site is genuinely appreciated.
Let’s see if we can get 1 million pageviews before the end of the year folks!
Have a great weekend,
Ellen Roseman said insurance might be the biggest personal finance blind spot. I suspect she’s right. Travel insurance is a must for us. While costly I believe it is invaluable when out of the country. We also have term life insurance (for about 10 years now) that covers us for $500k each.
A Purple Life travel hacked her way to a phenomenal $24,000 worth of travel in 2019. That is absolutely bonkers and awesome at the same time.
Impressive work and goals from Mindful Wealth, striving to own a $1.4 M investment portfolio for their retirement.
On the subject of million dollar portfolio dreams, Dividend Growth Investor highlighted what it takes to achieve this milestone. His secret sauce is not any different than my path to date:
Rather than be scared of the lofty goal of achieving financial independence, I have tried to break down the goal into smaller components and smaller targets that are easier to accomplish. I have also focused my attention on building a system of achieving my goals, through meticulous savings, investing and patience, while also enjoying the journey along the way.
Patrick Sojka from Rewards Canada shared his top tips for earning miles and points during your holiday shopping this year.
Real estate guru Romana King highlighted these top ways to kill your mortgage faster. She left out one of my personal favourites, shorten your mortgage amortization.
Radical Fire wrote about the power of being positive.
Still tons of great traffic flowing into this post about the top dividend ETFs to own that will provide you cash for life.
Cut The Crap Investing wondered if Canadians will really ever embrace Robo-Advisors? Not sure to be honest, there are some great companies out there offering some solid low-cost, passive investing solutions to help Canadians – but the uptake does seem slow. Any thoughts readers on why?
Here are some thoughts from Sure Dividend that highlight how to find undervalued stocks.
Interesting news in the financial industry recently that CoPower was recently acquired by Vancity Community Investment Bank (VCIB), Canada’s first values-driven bank and a subsidiary of Vancouver City Savings Credit Union (Vancity). With CoPower Inc. under the umbrella, it will be interesting to see how the sustainable investment space will evolve over time.
Before my reader question of the week…here is the exact email I got from a reader. How amazing is this?
Hey Mark! I love getting your emails! Our family just came back from a very very special trip to Disney where I met my stem cell donor for the first time! An American serviceman!! Feel free to share if you like under maybe something like “things that matter”… getting a second chance at life is something I don’t take lightly.
Reader question of the week (adapted for site):
I have an RRSP. If I convert this RRSP to a RRIF, can I open up another RRSP plan and contribute to that? Do you only get one RRSP per life?
My best to you and yours!
Interesting questions for sure.
Let’s recap what the reader is talking about. An RRSP (Registered Retirement Savings Plan) is a tax-deferred account.
A RRIF (Registered Retirement Income Fund) is also a tax-deferred account, but you must make mandatory withdrawals from it.
If you have an RRSP, at any age, you convert some or all of it to a RRIF. There are no hard and fast rules on this unless you’re in your 71st year. IF however by the end of the year you turn age 71, you have not yet collapsed your RRSP account – you must do so by the end of that year. This is because our federal government wants their tax-deferred money back they loaned you!!
You can absolutely contribute to your RRSP up until the year you turn age 71 but in that year you will be forced to collapse your RRSP to a RRIF or annuity or make withdrawals from said RRSP since that account structure cannot continue any longer.
By converting some or all of your RRSP to RRIF, you can keep the same assets you did in the RRSP in your RRIF – which makes this approach very effective. Then you are forced to make minimal withdrawals from the RRIF until that money is out of the account.
You can have another RRSP, or multiple RRSP accounts for that matter and you can contribute to one or more RRSPs as long as you have RRSP-contribution room. Like a TFSA or non-registered account or savings account, there are no rules in how many RRSP accounts you can own but consider how much work it is to keep track of multiple TFSAs, multiple savings accounts, multiple non-registered accounts and more. I think that would be a bit much even for a personal finance nerd like me.
I believe there is always beauty in simplification!
Hope that helps!