Comments on: This and That # 105 http://www.canadiancapitalist.com/this-and-that-105/ Helping you invest and prosper Sat, 11 Feb 2012 18:51:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Fred http://www.canadiancapitalist.com/this-and-that-105/#comment-148795 Fred Sat, 16 Aug 2008 09:55:46 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148795 With regards to the Money article, I definitely agree with: 1. simplify your portfolio 4. turn off CNBC 5. read a good book 7. make sure your cash s really safe 8. keep expenses low 9. gauge your stomach for risk 10. tweak your portfolio 19. hang up on the sales pitch 21. think about something besides money I have been moving my investments towards to models that I discuss on my blog. Essentially the models are based on market timing. For many years, I wasn't comfortable getting completely out of the market because doing so then requires deciding when to get back in. I am almost completely out of stocks and now use ETF's. This simplifies my portfolio and therefore I don't have to spend near as much time monitoring my holdings. With regards to the Money article, I definitely agree with:

1. simplify your portfolio
4. turn off CNBC
5. read a good book
7. make sure your cash s really safe
8. keep expenses low
9. gauge your stomach for risk
10. tweak your portfolio
19. hang up on the sales pitch
21. think about something besides money

I have been moving my investments towards to models that I discuss on my blog. Essentially the models are based on market timing. For many years, I wasn’t comfortable getting completely out of the market because doing so then requires deciding when to get back in. I am almost completely out of stocks and now use ETF’s. This simplifies my portfolio and therefore I don’t have to spend near as much time monitoring my holdings.

]]> By: Jon202 http://www.canadiancapitalist.com/this-and-that-105/#comment-148699 Jon202 Fri, 15 Aug 2008 18:56:00 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148699 If you're unlucky / lucky enough to marry someone who has no or little income, update your TD-1 (item 7) with your employer to claim your spouse's basic tax credit. If you’re unlucky / lucky enough to marry someone who has no or little income, update your TD-1 (item 7) with your employer to claim your spouse’s basic tax credit.

]]> By: Ben http://www.canadiancapitalist.com/this-and-that-105/#comment-148688 Ben Fri, 15 Aug 2008 18:32:18 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148688 Of the 6 tax-saving ideas mentioned, 4 aren't available to newlyweds getting married at a "conventional" age: one requires that one of us be dead, two require us to be older than 65, and the dividend transfer is unlikely to be useful among young people with small nest eggs. If there is a stay-at-home parent then the spousal credit is handy. And if the spouses are in different marginal tax brackets, and if the higher earning spouse has sufficient savings capability to reduce their taxable income to the threshold between the spouses' marginal tax brackets, then the spousal RRSP can also result in good tax savings. Of the 6 tax-saving ideas mentioned, 4 aren’t available to newlyweds getting married at a “conventional” age: one requires that one of us be dead, two require us to be older than 65, and the dividend transfer is unlikely to be useful among young people with small nest eggs.
If there is a stay-at-home parent then the spousal credit is handy. And if the spouses are in different marginal tax brackets, and if the higher earning spouse has sufficient savings capability to reduce their taxable income to the threshold between the spouses’ marginal tax brackets, then the spousal RRSP can also result in good tax savings.

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-105/#comment-148682 Phil S Fri, 15 Aug 2008 18:21:25 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148682 Most of those so-called "exotic investments" are really leisure pursuits that "might" make money. I have one friend who loves to collect vintage guitars. He has about 30 guitars in his collection, some are limited edition makes, some are autographed by famous musicians, some were played (but not autographed) by famous musicians which hold more sentimental value than monetary value. I find his collection to be more like a museum than an investment, but it is certainly interesting nonetheless! I have a different friend who is into wines and he has a collection of countless bottles of the right vintages of some of the most famous wines in the world. I can't even hazard a guess as to what his cellar is worth on the open market, but it's his "thing" and I respect that... Others collect sports cards and memorabilia, stamps, coins, artwork, classic cars and numerous other things which may potentially have high value. For me personally, I have no collections of anything other than dust. But it's all personal preferences and I certainly respect my friends for collecting all of those things that they adore. I just don't take any particular liking to anything enough to want to become a collector of it - aside from shares of companies, I guess... Most of those so-called “exotic investments” are really leisure pursuits that “might” make money. I have one friend who loves to collect vintage guitars. He has about 30 guitars in his collection, some are limited edition makes, some are autographed by famous musicians, some were played (but not autographed) by famous musicians which hold more sentimental value than monetary value. I find his collection to be more like a museum than an investment, but it is certainly interesting nonetheless! I have a different friend who is into wines and he has a collection of countless bottles of the right vintages of some of the most famous wines in the world. I can’t even hazard a guess as to what his cellar is worth on the open market, but it’s his “thing” and I respect that… Others collect sports cards and memorabilia, stamps, coins, artwork, classic cars and numerous other things which may potentially have high value.
For me personally, I have no collections of anything other than dust. But it’s all personal preferences and I certainly respect my friends for collecting all of those things that they adore. I just don’t take any particular liking to anything enough to want to become a collector of it – aside from shares of companies, I guess…

]]> By: ThickenMyWallet http://www.canadiancapitalist.com/this-and-that-105/#comment-148643 ThickenMyWallet Fri, 15 Aug 2008 16:20:49 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148643 A proper life settlement fund (the difference between life settlement and viatical settlements is that life settlement funds target healthy people with years to live and, to be crass, you are really betting whether the person dies before your calculation of their life expectancy) is supposed to pay out a cash discounted value of the policy at once (most reputable large life settlement funds have funding vehicles to fund the buy-out since the policies are aggregated and sold as corporate paper). Under most insurance acts in Canada (insurance being a provincial jurisdiction), a Canadian cannot set up a life settlement fund or viatical settlement fund and purchase policies from other Canadians. Canadians can only buy policies from jurisdiction that allow this to occur so if anyone in Canada is offered to sell their policy, it is statute barred. The Star articles seems to miss this fact. I would dovetail on your thought about exotic instruments. Remember that these were created as "fun money" instruments for the ultra rich. If they lost their money on it, so what? They have millions of dollars in safer investments. But they have moved down to retail and sold as the end all and by all of our financial woes. They continue to be "alternatives" and not staples to a portfolio. Have a great weekend. A proper life settlement fund (the difference between life settlement and viatical settlements is that life settlement funds target healthy people with years to live and, to be crass, you are really betting whether the person dies before your calculation of their life expectancy) is supposed to pay out a cash discounted value of the policy at once (most reputable large life settlement funds have funding vehicles to fund the buy-out since the policies are aggregated and sold as corporate paper).

Under most insurance acts in Canada (insurance being a provincial jurisdiction), a Canadian cannot set up a life settlement fund or viatical settlement fund and purchase policies from other Canadians. Canadians can only buy policies from jurisdiction that allow this to occur so if anyone in Canada is offered to sell their policy, it is statute barred. The Star articles seems to miss this fact.

I would dovetail on your thought about exotic instruments. Remember that these were created as “fun money” instruments for the ultra rich. If they lost their money on it, so what? They have millions of dollars in safer investments.

But they have moved down to retail and sold as the end all and by all of our financial woes. They continue to be “alternatives” and not staples to a portfolio.

Have a great weekend.

]]> By: Rita http://www.canadiancapitalist.com/this-and-that-105/#comment-148641 Rita Fri, 15 Aug 2008 16:06:28 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148641 Ditching the energy stocks?! This is nuts! 8) Now is the time to buy, not to get out... Ditching the energy stocks?! This is nuts! 8) Now is the time to buy, not to get out…

]]> By: moneygardener http://www.canadiancapitalist.com/this-and-that-105/#comment-148631 moneygardener Fri, 15 Aug 2008 12:15:47 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148631 Hey CC, thanks for the link. Hey CC, thanks for the link.

]]> By: Big Cajun Man http://www.canadiancapitalist.com/this-and-that-105/#comment-148620 Big Cajun Man Fri, 15 Aug 2008 10:27:45 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148620 Thanks for the mention CC, severance and job chasing are now my job, but its interesting so far. ;-) Thanks for the mention CC, severance and job chasing are now my job, but its interesting so far. ;-)

]]> By: WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/this-and-that-105/#comment-148514 WhereDoesAllMyMoneyGo.com Fri, 15 Aug 2008 03:06:59 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148514 Hi CC - thanks for the link. I'll keep my professional executioner away from Ottawa this weekend so you can enjoy it. :) Hi CC – thanks for the link. I’ll keep my professional executioner away from Ottawa this weekend so you can enjoy it. :)

]]> By: Michael James http://www.canadiancapitalist.com/this-and-that-105/#comment-148513 Michael James Fri, 15 Aug 2008 02:58:01 +0000 http://www.canadiancapitalist.com/?p=1135#comment-148513 Thanks for the mention. Based on the review, it looks like Swedroe's book is interesting. Have a good weekend. Thanks for the mention. Based on the review, it looks like Swedroe’s book is interesting. Have a good weekend.

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