Weekend Reading – Tuning out the investing noise
Hey Folks,
Welcome to a new Weekend Reading edition, back from vacation, with tuning out the investing noise on my mind.
I’ll share more details about my trip to and from lovely Belize over the last couple of weeks in a future post.
Our view for the week, from Ambergris Caye, San Pedro, Belize. It was great…
Some recent posts and updates on my site:
Congratulations to the winner of this giveaway – I will coordinate your autographed copy with Jessica!
A reminder we hope to earn over $52,000 this year from part of our portfolio, that includes a mix of stocks and low-cost ETFs. I hope to provide an income update from February in the coming week or so…
Given the very messy U.S. politics of late, that could get worse (!), I’m voting with my wallet to shop more locally and buy more Canadian goods than ever before when it comes to investing and shopping during Trump’s idiocracy.
I provide an important link to a Made in Canada Grocery Guide in that link above – please check it out!
Weekend Reading – Tuning out the investing noise
With thanks and attribution: The Behavior Gap.
Easier to say, harder to do!!
Inspiration for this headline arrived from the market turbulence over the past week.
A financial plan covers many things.
Within your financial plan (my own investing plan), from an investing standpoint, it is one that is balanced and tailored to me; aligned to our investing time horizon, includes our investing goals and related risk tolerance, and it’s strategically followed heck or high water – including buying stocks or ETFs if/when things tank.
Sticking to your investment plan sounds easy, especially when markets are doing well, but now we’re into extremely challenging and volatile times it’s not so easy I know.
There’s always uncertainty in the markets and so part of that, taming fear, is a powerful force that is difficult to overcome.
When stocks fall, our emotions make us think they will fall even further and we need to do something.
When stocks rise, our emotions make us believe they are going to rise even more often providing false confidence.
My approach/things I’m practicing right now in each key investing account is the following:
- RRSPs – We’re doing next to nothing. Dividend Reinvestment Plans (DRIPs) have been turned off and cash amounts from dividends and distributions paid are building up for future withdrawals in 2025 and 2026 when we might not be working. Throughout 2025, a workplace transition year for us it seems, is to increase our cash wedge for near-term spending; specifically inside our RRSPs so we might not buy any stocks or ETFs at all…
- TFSAs – When it comes to our TFSAs, if you’ve been following along in recent months, you already know we maxed out those accounts and we no longer have any contribution room left. Our 2025 TFSA contributions are now done and those contributions are now invested in low-cost XAW. When cash builds up from some dividends and distributions paid inside these TFSAs this year, we are likely to buy more XAW even if XAW tanks in price. Otherwise, no further portfolio changes.
- Non-Registered – We also have two taxable accounts – those accounts invest in Canadian dividend paying stocks for income and growth. While some taxable investing could occur in 2025 here and there, I’m not banking on much of it. I continue to believe we’ll forego lots of investing there and simply save up money where we can this year instead, inside a higher interest savings account (HISA) for near-term Canadian (!) travel.
Again, if you’ve been following along closely, I loaded up more on a few Canadian stocks in recent years: Tourmaline (TOU), Brookfield (BN), and Canadian Natural Resources (CNQ). I might add more of those if/when prices continue to correct.
As you can see, across all key investing accounts, a fairly boring and easy to explain approach. But I’ve learned that from others – that stuff works well for them too.
This is why I’m such a big proponent of having an investment plan that you can stick to during a wide range of market and economic environments – it makes it easier on your investing brain.
Tuning out the investing noise to me means:
- Going against your natural emotions at times. Staying calm when others are losing their minds.
- Thinking and acting long-term when others are being short-sighted.
- Making ongoing plans that focus on months or years.
- Largely doing nothing when professionals, talking heads, and markets are tempting you to do something.
Financial planning is a process – I believe it’s an ongoing evaluation of where you are and where you want to be. In some cases as part of that process it’s about not making any changes at all.
How are you coping these days? Have you made any portfolio changes in recent weeks? Are you planning to adjust anything? Do share in a comment below – would love to engage!
More Weekend Reading – Tuning out the investing noise
Smart investors realize investing effort is often inversely related to results. In support of that theme, a few other tidbits this week!
I enjoyed this article: 3 levels of retirement readiness. At some point I should write a post and take his test. 🙂
Fritz also wrote about 5 important factors in your decision to retire – and I did take his test.
Related to tariffs, my friends at 5i Research highlighted a few Canadian companies that are well-positioned to weather Trump U.S. tariff war on Canada.
I enjoyed Rob Carrick’s four steps to defend your portfolio against Trump and his trade war on Canada (subscripition):
- File your taxes, get any tax refund back; put that money to use.
- Prepare for higher inflation.
- Grit your teeth and scan your investments to ensure they align with your risk tolerance.
- If not already done, find the right high interest savings account (HISA) for your money.
Want support to train your investing brain? Get a quality, low-cost balanced ETF that holds a mix of stocks and bonds for times like these. Morningstar shared some of their favourites that align with my post as well.
Have a great, safe weekend and stay sane during this ongoing turmoil. I will try and do the same. 🙂
Mark
Stock price is not the only thing Trump affects negatively . If China retaliates North American crop prices suffer along with the rural economy. We have already contracted crops to lock in a price that are not even planted . Still have more pricing orders in if there were to be a weather rally . The low loonie helps with the basis price .
Figuring DJT will make stock prices suck I have buy orders for a few of the companies we hold in our TFSA’s for 90 days . EQB and ARX have already hit . ALA, MFC,NTR and VIU etf may or may not . If they fall 10% they will fill . If they don’t will put the cash back in the hisa inside the tfsa . Holding about 20% of our tfsa’s in cash as we have aggressively topped them up the last 18 months .
I find it much easier to decide on a discount price , put in an order and wait . Crop prices have dropped 25-35% , stocks may too .
We’ll see how all this shakes down…
What you are actively buying?
Ya, I figure we’re in for a rough year so if you’re buying, a good time to do so vs. fall 2024 market highs.
I like EQB and continue to own it. Would like to buy more BN and TOU in taxable if I can afford it in particular.
Mark
Not an active buy but I had a bunch of CWB that converted to National Bank shares , gotta love a 70% one day gain on the acquisition news . Until that happened CWB was EQB’s poor cousin in performance . I have owned both for a few years .
Finding I am buying larger amounts of ETF’s . Moved one of our Beutel Goodman funds to XAW. Another to FBAL just to get a
smidgen of crypto and GBAL for my wife . Too old to be all equities .
Geez, no joke eh?
I own NA, a few hundred shares. I own EQB as well, a few hundred shares for some growth.
XAW, FBAL, GBAL, all good low-cost global-oriented funds. Smart for diversification IMO.
Mark
Lots of noise this week, errrr, this year (feels like).
I’ll just continue to watch our dividend income grow and be content with reduced prices for my DRIPs.
I picked up a second contract, good until June/July. I’m expecting about $9k from CRA for my refund, but I’ll probably use that for an installment for 2025 taxes now that I’m self-employed. I expect to make a couple of tax pre-payments during the year. I’d rather do that so I can ensure I will have less than $3,000 owing for 2025 taxes and this way I can avoid being forced into installments in 2026.
I am forecasting we will get to 95% of our retirement dividend income goal by the end of this year. If I can get contract work for the second half of the year then it may be possible to close the gap completely. We would likely still plan to work for all of 2026. That would allow for an extended opportunity to grow the dividend snowball further but also prepare a larger cash wedge.
I’ve been to Belize, on business years ago. I can’t wait for the opportunity to go there for a proper vacation! Looks like you had a great time – I’m looking forward to your update.
Nice, well done with the contract.
We don’t tend to get too much $$$ back from CRA each year – we try and break even. Indeed, nice to avoid installments if you can.
Nice, re: Belize. It was fun and we’ll go back again!
Cheers James,
Mark
Hi Mark,
I think my only regret this past week was buying more shares in MG last Monday and not waiting to see if Trump would actually implement the tariffs on Canada, Tuesday. I would of got it cheaper. Oh well, lesson learned.
Hope you have a great week.
Gotcha. Oh well. You can’t time everything but you already know that from your experience. It’s not like you “need” to invest – you’ve won the investing race I recall. 🙂
Are you looking at buying anything else in 2025?
I think I might buy some stuff in my taxable account but that’s about it – at best – I’m fully invested everywhere else right now.
Mark
Oh, I never know Mark from month to month what the next stock is to buy or add shares to the non-registered.
Next up could be something from either the consumer discretionary, industrials, or communications sectors. Laggards available in all three sectors and I’ll know which one gets chosen on the day I buy.
We’ve already added our full cash allotment to XDG back in January. Can’t add to the RRIF’s of course, just minimum withdrawals each year.
I suppose it depends on what you find attractive in price?
I like 52-weeks lows for sure, as one measure to monitor when things correct.
Then again, I tend to buy when I have the money to do so as well.
I assume you’re only buying inside taxables now, given RRIFs turned on?
How are RRIF structured for cashflow again – for annual withdrawals?
Cheers,
Mark
For the RRIF’s we just sell part of the ZBAL we need for cash every January and withdraw the minimum amount in April. We have the broker allocate half to federal withdrawal tax and the other half goes to us to use for the following year’s allowed contribution to the TFSA’s. We try and avoid having to deal with quarterly tax installments and so far we’ve succeeded.
Aside from buying more of XDG in January of in the TFSA’s, any money from dividends in the taxable account gets added to more individual Canadian dividend paying companies, around once a month. If some companies are doing well in the non-registered portfolio I can always find other companies that are not doing so well.
Gotcha, ZBAL in RRIF.
I put my parents into some VBAL for their RRIF, for the same reason, sell off a bit every 2-3 years and keep a cash balance. Good idea? 🙂
“We try and avoid having to deal with quarterly tax installments and so far we’ve succeeded.” = excellent.
I hope to keep adding to taxable over time but then again, I need the $$ / taxable dividend income for living expenses too potentially starting later this year.
Hi Mark: Hey Johnny that is were my brother is going. Aruba that is! As far as Trump and tariff’s are concerned stay calm and carry on as this too will pass. Mark, with your illustration we actually need all three as the noise leads to uncertainty which can lead to a down market and lower the price of stocks so now you can buy the stocks you want that you couldn’t before because they were to high. I personally am waiting past April to see were the stocks land and then buying them. it seems lately that Trump can’t make up his mind and people can’t put their lives on hold until he does. Mark it appears you had a great time. Time away gives one time to recharge and refresh oneself so you can get on with every day life renewed.
I had a great time in Belize. Very much enjoyed it.
Ya, I’m not in a rush to buy anything right now to be honest. Wait and see. If markets go up, great. If markets go lower, I might buy more BN and TOU.
“including buying stocks or ETFs if/when things tank.”
I have to admit the urge to buy some BN in the non-reg is almost irresistible. I have a whack of BAM in that account but I don’t want to add to that holding increasing the ACB *and* increasing non-reg dividend income.
Working on the income taxes this morning and we’re going to have a substantial rebate due to getting nailed by last years installment payments, and a healthy charitable donation credit for 2024. So this, combined with a small stash of cash in the non-reg, opens up an opportunity to pick up some BN. I sooooo want to but…..
Working on my taxes this week…likely to owe a bit to CRA. My wife may get a small refund this year. Should largely even out.
Yes, if I can find more $$ to invest both BN and TOU on my list for taxable investing in that order.
That’s about it. Otherwise, sticking with what I have including ETFs for long-term investing.
Mark
I’ve made peace with the possibility that world markets could drop due to the USA untethering from its allies, imposing tariffs, and ushering in an uncertain future.
Something I wanted to share with you is the UBS Global Investment Returns Yearbook 2025. It offers a look at historical equity and bond returns around the world, as well as offering some insights based on the data:
https://www.ubs.com/global/en/investment-bank/insights-and-data/2025/global-investment-returns-yearbook-2025.html
Great stuff, Stefan and certainly an untethering can and should continue away from the U.S. Necessary!!
Mark
I saw that Morningstar article as well. Why was XBAL excluded? Unfortunately, you can’t look up their “Medalist Rating” without being a member. However, I have to wonder why the rating differs from ZBAL to VBAL? The mix within each of these balanced portfolios is pretty close.
My only regret with going to XBAL is that I could have gone with ZBAL to at least have the funds managed by a Canadian institution.
Not too sure, Bill.
I continue to see XBAL, ZBAL, etc. and MAW104 (Balanced Fund) in the same way. Very similar stuff in that you pick one and hold it and don’t worry about and sell off bits of it as you age for your income needs.
https://www.myownadvisor.ca/weekend-reading-beyond-60-40-portfolios/
I actually put my parents into VBAL for their small RRIF that remains. That should be gone in about 3-5 years for them.
I put my parents into VGRO for their TFSAs.
To your point, probably should have put them into ZGRO and maybe I still will vs. a U.S. company.
Mark
Always great stuff that comes from Fritz. I have his book and regularly refer to it. I always enjoy his Retirement Manifesto blog. Thanks for sharing!
Yes, smart guy and very practical on things!
How is your portfolio holding up in retirement with all this mess?
Mark
YTD I’m up just over half a percent (0.61%) but since my high on Jan 27, I’m down around 1.5%. Not panicking though – slow and steady wins the race. Continuing to look for buying opportunities – eg. increasing some of my bank holdings as their prices drop. More shares = more divvies! That clown down south always says “Tariffs is the most beautiful word” – WRONG – “Dividends is the most beautiful word”.
I could see all stocks going lower this year vs. higher. Who knows!?
I’m about 90% stocks and 10% cash/cash equivalents now since I need some of that 10% to live from in 2025 and 2026 if not working. We’ll see. It is my hope I can work part-time for at least the coming 6 months and potentially next year but we’ll see what work opportunities present. I could be unemployed come 2026!
I can’t recall from your final decision – did you ever “unlock” 50% of your LIRA? How did that process go for you with your financial institution if so? I intend to do that in a few years…start my small LIRA to LIF, start my wife’s LIRA to LIF as well and move the other 50% to our respective RRSPs for some extra compounding WHILE getting the money flowing from both LIFs in our 50s in early retirement…
Cheers Mikey.
Mark
Hey Mark – I haven’t done the “unlock” yet but I still plan to. I did transfer my LIRA from TD to Wealthsimple (for the 2% bonus – they were only offering 1% for LIF) and that was pretty straightforward. Eventually though I will convert it to a LIF, unlock the 50%, and then do max annual withdrawals on the remaining LIF each year as part of my income stream. It will be a small amount compared to my annual RRSP/RIF drawdown so the LIF should be gone in a few short years.
Gotcha.
I hope to do the same, re: I have a small LIRA and will unlock that, take MAX LIF withdrawals and knock it down sooner than later.
I’ve found even with $100k LIF, using MAX LIF withdrawals, starting at age 55, it could take 30 years for the LIF MAX withdrawals to be exhausted on that balance. There is also pension unlocking for small balances too in Ontario.
https://www.fsrao.ca/consumers/pensions/events-may-affect-your-pension/pension-unlocking-non-hardship
Ultimately, my goal is to simplify the # of accounts I own while getting the $$ flowing at age 55 to smooth out taxation.
Mark
I almost thought you had brought back some warm weather this past week Mark. LOL
Where is the yacht you showed us a year or two ago. Looks like it might be a bit shallow there though.
Here are a few words from JFK. What a difference!
https://www.tiktok.com/@jfklibraryfdn/video/7457649403646610730?_t=ZM-8uVl5jKFoov&_r=1&fbclid=IwY2xjawI5KbBleHRuA2FlbQIxMQABHQoqgPtDOLLHM6RA9cf9f3V_wmlLFQ2w9Kq2KrqYbT6FHsl7V7v9cp7eTA_aem_axtGzy7xglvMrDQk-EGzgA
Aside from that I am holding fairly steady except for a tad of panic selling of my restaurant stocks. Didn’t lose money but not really a good move – in hind sight (20/20)
RICARDO
Ha, I wish. 🙂 Belize was warm. About 28-29 Deg. C all day, everyday.
Thanks for the link!
Mark
Hey Mark, welcome back ! Looks like you had great vacation spot. Very happy for you and your wife. I am sure you enjoyed that !! :o)
Just when you think the markets might be stable, in steps Donnie T with his unethical behavior. Well, I guess they are never really stable :o)
My concern now is, how to you shift through my investments, to see if there are any that will definitely get clobbered with a huge business and profit reduction translating into a dividend chop??
Thanks, Johnny – yes, it was a very nice spot.
Very unstable times and very unstable President to say the least. The world and Canada is in big trouble I think.
I could see a few companies at least pause their returns/dividends to shareholders to protect cash. Probably smart to be honest. Only those with very strong cashflows for all weather and season of circumstances are likely to raise dividends.
I still think BCE will chop their dividend at some point this year by 50%. I don’t own very much at all of that company. Literally a rounding error for me.
I will continue to own the 25 or so CDN stocks I do, I will continue to own the very few U.S. stocks I do like WMT, WM and then everything else is indexed for simplicity. So far, so good here.
Are you thinking of making major changes to your portfolio?
Mark