It was another solid week for the balanced portfolio. Canadian markets were flat, International markets were down modestly, and those U.S. stocks continued to shine. And those growth stocks led the way for the U.S. market. Stock and bond markets mostly continue to buy that inflation is transitory argument. It’s another plentiful week with great links and Tweets on The Sunday Reads. Enjoy.
Jon interviewing Jon
On The Findependence Hub, Jonathan Chevreau interviews himself (yes really, and it’s a great idea) about an updated version of Findependence Day. It’s a novel, and a financial novel. In framing the new offering Jonathan answers himself with …
We tried to bring traditional novel-writing structure and techniques into the book so that the young people who are its target audience would first be entertained and drawn in sufficiently that they’d want to see what happened to Jamie and Sheena. Yes, we sprinkle in the financial info as the plot proceeds but not at the expense of Story. So the minute any financial dump starts to sound contrived and unlikely to occur in real life, we cut it short and returned to the story.
On The Hub you will also find a Q&A on Vanguard’s retirement funding ETF – VRIF
Here’s my review of Vanguard’s VRIF. And of course, in relation to the VRIF fund and payout target, Canadian retirees recently received a potential and generous raise thanks to the Purpose Longevity Pension Fund. I will create a dedicated post highlighting the differences and potential use of those two retirement funds. Stay tuned.
Safe withdrawal rates
And on fiphysician here’s a very good post on safe withdrawal rates.
Banker on wheels looks at the asset returns in the best half year in 4 decades. There are some wonderful tables and charts in that post.
For 2021 (so far) I looked at the Canadian stock market performance.
Here’s the Weekend Reads on My Own Advisor – the Tax Free Investing Power Edition. This week Mark also looked at wills and what is an executor? That is an important topic and consideration for the appointment of your executor, and you might end up on the other end as an executor.
On Savvy New Canadians a review of the Wealthsimple trading app. I’ve watched my son use that app for buying Canadian stocks. It works very well and there are no trading fees for Canadian stocks and ETFs. Investors will face a currency conversion charge when they trade U.S. stocks. Be careful of those charges. Remember for the U.S. market you can purchase Canadian dollar ETFs that are currency hedged, or non-hedged.
Monthly paying stocks
On stocktrades Dan looks at monthly-paying dividend stocks, REITs and income trusts. They also offer a few favourite picks.
Some retirees, especially those that love their Canadian dividend stocks might look to create more consistent monthly income. For retirement income, I’d suggest that a balanced portfolio total return approach (that employs portfolio income and share harvesting) is the most optimal route for creating reliable and growing income. But certainly some juicy Canadian dividends in the mix might contribute in a meaningful way.
If history repeats, the generous Canadian dividends (over the use of a Canadian market ETF) will increase your odds of success in retirement.
My retirement strategy employs Canadian dividends stocks, U.S. dividend stocks, Canadian and U.S. bonds, commodities and bitcoin. My U.S. stock strategy has greatly outperformed the U.S. market (as well). I also layer in some Canadian energy stocks.
Bob at Tawcan offers up his most recent dividend update. May is not a big month for that dividend machine …
Out of the $1,778.16 received, $426.68 was in USD and $1,351.48 was in CAD
In April they had topped $3,000.00
On the Maple Money podcast – how to create a plan for your money featuring Ashley Patrick.
The Tweets from the week
And yes you should follow me on Twitter. It is a great resource in the investment, economics and personal finance space. And certainly you can find incredible resources for any topic of choice.
Here’s a few good Tweets from the week.
In the grand reopening we’ll want to buy experiences over things …
What a drag …
Commodity prices …
On PE multiples and potential returns. Yes valuation matters over time.
Will the Canadian energy sector be a gusher for dividend growth?
And I’ve read too much ‘stuff’ in this area on climate change and the prospects for our planet …
In the Globe, (pay wall) Eric Reguly is discovering the energy reality.
Bad move of the week … ooops?
Answer: not cool. Someone had suggested that his wife name the child Tampa. Middle name Bay of course. 🙂
Thanks for reading. Have a great Sunday and a great week. Shares of this post are appreciated.
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Consider Justwealth for RESP accounts. That is THE option in Canada.
At Questrade, Canadians can buy ETFs for free.
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 1.25%. You’ll find some higher rates on certain GICs. They now also offer U.S. dollar accounts.
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