First things first, my weekly round (which is really bi-weekly these days) will be more focused on Dividends and Investing with a dash or randomness if I find it pertinent. I was always a little more focused on dividends as I really have more times to give attention to those blogs over others.
Top Canadian Personal Finance Blog Nomination
I am always humble to be nominated and its always thanks to my readers. Without you, there wouldn’t be a blog. Over at Modest Money, I was nominated as a Top Canadian Finance Blog and I would love it if you could take some time to vote for me It takes only a minute – click the link, scroll down the list and click “The Passive Income Earner”.
I don’t know if you read the news about Apple mulling over having preferred shares with something like a 4% yield and with their cash balance, it sounds like it would be a great opportunity
Continue reading Dividend Round: Preferred Shares Anyone?
It’s clear that all the crystal balls from last year, or even the year before, predicting a housing crash were simply wrong. I don’t believe ever reading analysts predicting a crash but headlines from the media were sensational. I have said this more than once, when individuals interviewed about their finances all believe they are in control but they don’t think others are, the reality is that everyone thinks they are in control regardless of what the ratio of income to debt is. It doesn’t make it any better that the flock believes it is fine. In fact, some doomsday sayer around the real estate thought about shorting the biggest alternate mortgage company (Home Capital Group). So far, that strategy has not been a successful one so far. I should note that HCG is a Canadian Dividend Aristocrats too
Related: Shorting Mortgage Lenders
The CHMC Mortgage rules changed and the constant reminder that we are in over our head in
Continue reading Weekly Blog Round: Real Estate Downtrend
With the new year slightly behind us, I consider January a planning month for RRSP and Tax Planning. To optimize your RRSP, you will need to have an idea of your taxes. Last month I discussed how you can offset capital gains with capital loss and now it’s time to make sure you make use of your RRSP account effectively if you do make use of it.
Personally, I do all three accounts in the following order:
To optimize your RRSP, you want to understand how big your tax refund is and then you calculate how much more RRSP contribution you could add in the short term by borrowing and then you use the tax refund to pay back the loan.
For example, if you are getting $1,000 in a tax refund and decide to borrow
Continue reading Weekly Blog Round: RRSP Planning
Many of you join me in my journey to build an income portfolio at different point in time and I wanted to review my most noteworthy posts of the year with you. Those I feel are noteworthy anyways
Over the year, the markets were up and down, mortgage rates were low (and are still low), and some buy opportunities were present. Here are some financial wisdom
- Define your financial and retirement strategy
- Stick to your strategy
- Review your strategy and investments regularly
May 2013 provide everyone with financial success!
Noteworthy Posts – Editor’s Picks
Many of those are my most commented and most viewed posts. I’d love to hear which one you find the best and most pertinent for you – leave a comment!
How To Review Your Portfolio
How To Assess If The Smith Manoeuvre Is Good For You
Continue reading 2012 Posts in Review
We are 5 months away from filing taxes but December is actually a very important month for starting to think about taxes.
If you have sold some investments with capital gains outside a registered account, you may offset the capital gains by taking capital losses too. It’s not a matter of holding a negative stock for the long term but simply making a tax efficient move. You can buy back the stock 30 days after your trade settles.
Tax Planning Example
Consider two investments purchased over the past year:
- Company A: 100 shares at $10.00
- Company B: 50 shares at $20.00
At the end of the year, the companies have the following values:
- Company A is trading at $14.00
- Investment value in Company A is $1400.00
- Company B is trading at $16.00
- Investment value in Company B is $800.00
You took some profits in Company A by selling half of them. Might be to add to Company B at some point but
Continue reading Weekly Blog Round: Tax Planning
I wanted to take a moment this week to partake in the Financial Literacy project spearheaded by Glenn Cooke at Life Insurance Canada. I missed my chance to officially participate but since I feel it’s a really good cause, I wanted to promote it and share my financial tips.
My Financial Tips
- Credit Cards: Don’t keep a balance!!! It will ruin you.
- Borrowing: Make sure your cash flow can cover the interest and you have a plan to pay it back
- Savings: Pay yourself first. Start small and grow it slowly.
- Envy: Don’t compare yourself to others. Define your goals, make a plan and stick to it.
Financial Literacy Day
Find out what other bloggers have to share!
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.
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
Continue reading Weekly Blog Round: Researching Bonds
Before I discuss the current RESP planning process I am going through, I would like to highlight to all my readers that I share all my stock trades through my newsletter. So far this year, I have done 4 trades starting with my annual January TFSA contribution.
Here are a couple of stock trade newsletters to give you an idea. I am always happy to tune the content, please let me know if there are more information on the trades you would like to see.
My intention is to continue and provide that unique content through my newsletter. In the coming weeks, I will be disclosing my future stock purchases in my RESP account. Sign up now and you won’t miss my trades.
The newsletter is free, you get around 1 email per month reviewing finances and investing topics. I always get emails from readers
Continue reading Weekly Blog Round: RESP Planning
This weekend, I am bringing to your attention a number of investing eBooks created by fellow bloggers. A lot of work goes on into putting a book together and I’d like to bring your attention to those eBooks as you may benefits from them.
I believe the following eBooks would definitely add value to many DIY investors. The first principle in investing is to understand yourself and define your boundaries. With your boundaries define, look for information to become more knowledgeable in that area from both an investing and a tax perspective as they both contribute to the bottom line of your returns.
I am more than half way through this book and just nearing the analysis part. So far, I have enjoyed Matt’s book and there are is one quote I am looking forward to share in my book review.
If you are on the fence about dividend investing, Matt goes over the
Continue reading Weekly Blog Round: Investing eBooks Bonanza
These days, I do not pay much attention to the markets in general. The US is still at work stimulating their economy and Europe is still trying to figure out their mess. I do look at my technical screening to see if anything pops up; like Intel (INTC) for those interested I review what analysts have to say on BNN through Stock Chase email notifications. I get 2 emails a day with a summary of what analysts said about companies. It takes 5 minutes in the morning and I get quick news on various companies. I am also subscribe to Pat McKeough service and blogs at TSI Netowrk (I have been for almost a year now). It doesn’t require that much time to keep up and I am not trying to predict the future either.
For all my regular and future readers, I have added a Dividend Calendar section under
Continue reading Weekly Blog Round: Saving Money