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As part of my RESP Planning, I have started looking into bonds. I will admit that my dividend investing accounts have no bonds at the moment. It’s not because I don’t believe in it, it’s because my company RRSP plan covers that through the mutual funds offered – I am indexing my defined contribution plan as it is the best option for that account.
Researching Bonds
I started looking at bonds ETFs and I was faced with quite a number of options to my surprise. I started looking into Vanguards ETFs first as they are highly recommend by Andrew Hallam. I also looked into iShare CHB as a friend has money in them and it has done well. Other than that, I will be going through the list of ETFs and comparing them to one another. I’ll need to figure out what kind of bonds I also want to invest in such as government bonds, corporate bonds or junk bonds. I am really just starting and we love to hear your experience.
Readers, do you have a bond ETF you like?
Lunch Update
For the past month, I have managed to bring lunch every day. Whenever I bring lunch, I put $10 aside to invest in my Computershare or Canadian Stock Transfer account. Slow and steady, I build up those accounts. It took my a few weeks to get the habit going but it’s going well now and my investments are better by at least $300.
Worthy Readings
Some weekend reading to share …
- Andrew Hallam with ‘Millionaire Teacher Invests $21,000 In U.S. Stock Index‘
- Boomer & Echo with ‘Give Your Money Time To Grow‘
- Dividend Growth Stocks with ‘8 Stocks With Strong Dividend Growth Metrics‘
- Dividend Growth Stock Investing with ‘Notable Dividend Increases: October 2012‘
- Dividend Mantra with ‘Dividend Income Update – October 2012‘
- Dividend Monk with ‘Looking for Consistent Growth from Dividend Stocks‘
- Dividend Ninja with ‘Recent Buy: McDonalds (MCD) and Coca Cola (KO)‘
- My Own Advisor with ‘FREE Giveaway and Book Review – Cash Cows, Pigs and Jackpots‘
- Retire Happy Blog with ’Variable or fixed rate mortgage: Which is better?‘
- The Loonie Bin with ‘At A Glance: Canadian REITs‘
- Young & Thrifty with ‘Top Five Personal Finance Books You Should Read‘
Carnivals
Here are the carnivals I was present in the last 2 weeks highlighting a couple of posts I wrote.
- Y and T’s Weekend Ramblings at Young and Thrifty
- Yakezie Carnival at The Ultimate Juggle
- Carnival of Financial Planning at Personal Finance by the Book
- Carnival of MoneyPros at Debt Black Hole
- Carn. of Financial Camaraderie at Credit Resource Center
- Yakezie Carnival at Portfolio Princess
- Carnival of MoneyPros at Thirty Six Months
- Y and T’s Weekend Ramblings at Young and Thrifty
- Carn. of Financial Camaraderie at My University Money
- Canadian PF Happy Hour at Canadian Personal Finance
Image: FreeDigitalPhotos.net
Thanks for the mention, PIE!
Steve@The Loonie Bin recently posted..Dividend Income For October 2012
Thanks for the mention my friend. I really appreciate the blog support you provide.
As for the best bond ETF, I like XBB. It’s a great all-in-one product that has modest maturity periods and decent yield, even in this rate environment.
Cheers,
Mark
My Own Advisor recently posted..FREE Giveaway and Book Review – Cash Cows, Pigs and Jackpots
@Mark
Always a pleasure. Thanks for sharing your Bond ETF!
Thanks for the mention!
Dividend Growth Stock Investing recently posted..Notable Dividend Increases: October 2012
Are you ever locked into a bond? From my understanding when investing in certain bonds, you are locked into a term such as 1-10 years?
How liquid are bond ETFs?
Thanks
@Matt
The individual bond market tends to be more locked but I believe you can sell them – something to investigate. With ETFs, you can trade any day, it’s just like a stock when it comes to trading and it behaves like a mutual funds in a way where it buys many bonds for you and it most cases it will follow an index.
Thanks for the mention!
I don’t currently have any exposure to fixed income, as I believe bond returns will be lackluster going forward due to rising interest rates (they will come sooner or later). Equities right now is where my money is at.
I do hope interest rates rise substantially over the next 5-10 years. My plan is to invest heavily into equities now, and when my financial independence nears over the next decade, I’ll go very long on bonds near 40 years old and get my fixed income exposure then as I’ll be living off the interest.
Best wishes!
Dividend Mantra recently posted..Recent Buy