Weekend Reading – What you truly value, dividend income dreams, stock market predictions 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.
“All change brings opportunity. Some change gives us the opportunity to pause and ask what we can do better.”
Nicely said and that’s part of the foundation of this blog. Continuous improvement is something I strive for on My Own Advisor as it relates to improving my personal finances. That quote in particular was from a recent post on Farnam Street blog about finding what you truly value.
Certainly not a typical Easter long weekend for many of us. No big dinner with the broader family. So, we’ll go early 2020-virus-isolation-style: something virtual for both sides of our family this weekend!
Do you have any plans to get together virtually with family or friends this weekend?
Whatever your plans, I wish you a Happy Easter all the same.
Stay well, stay safe and see you on the site.
Earlier this week, I wrote about how I’m preparing for a global recession. I suspect one is on the way. Depending upon the reports you read, we’re already in one. How deep could the recession go? Will there be a long-term depression? I really don’t know. I simply hope our broader economy can get back to normal, safely, soon…
New book giveaway!
Although there wasn’t a specific newsletter sent out for this post, I wanted to highlight I recently published an interview with author and CFP Larry Wilson, who has launched a new book entitled Living Your Dream. Check out that link and enter to win two (2) autographed copies of Larry’s book – targeted to help you remove financial stress and complexity from your life.
If you have a question (or two or more) for Larry, make sure you leave a comment in that blogpost as you enter to win.
Articles from the blogosphere…
A Handful of Thoughts suggested now is the time to be mindful, not to panic.
She Picks Up Pennies feels very fortunate, so she’s going to pay that good fortune forward and spend her U.S. stimulus check to support her local economy accordingly.
Incredible stuff from some bloggers who continue to save, invest and reinvest their dividends…
Headlining his compounding wealth, none other than Frugal Trader from Million Dollar Journey – who has now approached his financial crossover point for his family. He remains an inspiration. Some of the stocks he invested in this quarter:
- “iShares MSCI All Country World ex-Canada (XAW)
- Brookfield Infrastructure (BIP.UN)
- TD Bank (TD)
- Canadian National Railway (CNR)
- Capital Power (CPX)
- Canadian National Railway (CNR)
- CAE (CAE)
- Waste Connections Inc (WCN)
- Algonquin Power Utilities (AQN)
- Royal Bank (RY)
- Scotia Bank (BNS)
- Bank of Montreal (BMO)
- Sunlife (SLF)
- Enbridge (ENB)
- CIBC (CM)
- Manulife (MFC)”
I hope to post my latest update next week. This was my update last month; things changed in March!
Kudos to GenY Money and her progress this month.
Tawcan accelerated his path to FIRE with this update.
A big thanks to Tom at Dividends Diversify for my interview on his site – who believes I’m a dividend reinvestment millionaire in the making. Kind words Tom.
Dividend Earner highlighted some Canadian Dividend Aristocrats.
All About The Dividends shared his latest income update.
From someone who has already achieved financial independence, Retire by 40 thought you could consider this market crash your retirement test drive. Retirement can include less social interactions, loss of income, challenges in staying busy, the need to learn to cook, among other test areas.
Speaking of cooking, Bitches Get Riches believes you should really rekindle the lost art of how to cook.
Market bear David Rosenberg believes while things are not very rosy in the stock market let alone our economy right now, a recovery will occur, but you’ll have to wait for it.
Great resources here from Jon Chevreau on COVID-19 income support.
Dale Roberts believes the market is likely to go much lower near-term.
Jessica from The Fioneers mentioned she is no stranger to job loss, so her experiences could be invaluable to others. She wrote about life after a job layoff. Among her suggestions if this has or might be happening to you: take care of yourself including some time to reflect; get adequate sleep, exercise and focus on your relationships.
Pete Adeney aka Mr. Money Mustache believes no, you didn’t just lose your half your retirement savings in wake of the latest market crisis.
Reader question of the week (adapted slightly for the site):
Hello, I read your stuff all the time and find it all very informative. OK, my question:
I own a RRSP, TFSA all in Canadian-dollars. I want to invest in certain American stocks and ETFs so I will open up a USD-dollar RRSP at my brokerage very soon.That’s not the issue.
My issue and question is, I’ve learned from you the best way to invest in American stocks and ETFs (to avoid withholding taxes) is to put those American stocks and ETFs in my RRSP.
I presently hold a U.S. indexed fund that trades in Canadian dollars, it’s a Canadian ETF. Should I change this ETF? How should I go about owning my American stocks and ETFs? Do you have any posts that could help?
Thanks very much!
OK, in terms of owning any Canadian-listed ETF or U.S.-listed ETF in your RRSP, there really is no wrong answer but you are correct that once your portfolio starts to become a sizable amount (say > $50,000) then I think it makes to at least starting thinking about U.S.-listed ETFs inside your RRSP (to avoid the withholding taxes).
This is not to say you have to do this. The BIG advantage of continuing to own Canadian-listed ETFs that hold U.S. stocks or U.S. ETFs is you don’t have to worry about currency conversions.
Here is a popular post about those considerations and more for your RRSP including lots of great comments from readers as well.
I would suggest you read this if investing in U.S. stocks or ETFs.
If you still want to go down the road of owning U.S. stocks and ETFs in your RRSP like I have, then I would consider using Norbert’s Gambit. I typically use option #2 in that post when I have a few thousand bucks to invest.
A final reminder you can also earn U.S. dollars from a few Canadian dividend paying stocks:
Should you want to file your taxes this spring
Don’t forget – with our CRA tax filing deadline extended to June 1, 2020 due to the COVID-19 crisis I can get you 15% off TurboTax Canada software until April 30, 2020. (As always, never an obligation).
Should you want help with investing…
Check out my Deals page where I have partnerships with various financial firms to save you hundreds of dollars when opening your investment accounts; I can get you $50,000 managed FREE for a year; and there is FREE, unbiased research on stocks, ETFs and more.
Thanks for the mention Mark. Have a great socially distanced long weekend
All the best GYM and thanks for your continued support on your site 🙂
I’ve been on both sides of the investing strategy, dividend or total return. I started out as a dividend investor thinking it was the best route and then became an all return investor.
While watching both sides of this argument from the background I have noticed that both types of investors have been missing out.
Low volatility investing seems to be a better investment over either of these investment choices. Or am I missing something?
Click ‘max” to see the long term differences.
ZLB vs CDZ
ZLB vs XIC
ZLU vs XUU – just narrowly beating XUU
ZLU vs VGG again narrowly beating
I think both approaches can live in harmony actually. Jon Chevreau seems to use both rather successfully in semi-retirement:
The thing with some low-vol funds is they tend to own the utilities and some RETIs in their top holdings.
The question I’ve always asked myself is why not just own those companies outright? So I do!
Thank you for the mention Mark. Stay safe and have a great long weekend.
You too my friend. Stay well.
Thank for the mention Mark.
I completely agree with you that this Easter weekend will be very different than ones precious. That being said it may lead to more connection. Normally we only see one side of the family on a big holiday like this. Now with being stuck at home we can make time for both families virtually.
Wishing you a safe Easter.
Virtual family gatherings it is – stay well please!
Thanks for the interview Mark and for the mention here in your latest weekend reading edition. Have a great weekend. Tom
All the best Tom and enjoy the weekend.
Thanks Mark for including me in your post, I greatly appreciate it!
Most welcome, Happy Easter.