Search found 348 matches

by cannew
23 Aug 2019 17:29
Forum: Financial Planning and Building Portfolios
Topic: lessons from 2008
Replies: 54
Views: 5688

Re: lessons from 2008

Taggart wrote: 23 Aug 2019 16:13 Cannew is a humble guy, but very much worth listening to for anyone who has even a little bit of an interest in Canadian dividend growth investing. He authored the book "Your Ever Growing Income" just a few months ago.
Taggart, you're hired as my PR guy, thanks. Check out my blog, then one really gets an earful on my investing strategy: https://risingyieldoninvestments.blogspot.com/
by cannew
23 Aug 2019 11:16
Forum: Financial Planning and Building Portfolios
Topic: lessons from 2008
Replies: 54
Views: 5688

Re: lessons from 2008

I was retired back in 2008 and had being investing for Income for several years. Our income from investments had not fully exceeded our expenses at that time, but we were able to invest additional funds during the crisis and our income from investments jumped nicely. Only one of our stocks (MFC, which we dumped later) cut the dividend, the banks held and we had several which continued to increase their dividend. Our reinvestments also generated more income, so the Crisis was a plus for our investments. Since then we've grown our income, which has far exceed our expenses, so we don't expect any future crisis to effect our retirement status. We do hold about $50k in cash, not as a cushion but just access to spending money for purchases. No wa...
by cannew
23 May 2019 11:30
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

Cannew, you should stop flogging that horse. Income changes by year are meaningless for everyone, except perhaps retirees in withdrawal, and even then, I'd argue total return is the more important criteria. Anyone in accumulation stage should be indifferent to income in favour of capital appreciation. But we will obviously never agree. I have no objections to Total Return, but if ones Income is growing each year, so will their capital eventually. Income comes from earnings, so IMO it makes more sense to maximize income (avoiding high yielding options) and one can achieve that with quality DG stocks. A young investor, especially one under 21 likely has no interest in managing a portfolio or stocks. One option is to invest in an ETF, I sugge...
by cannew
23 May 2019 10:51
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

Actual Year Div % Gth XIU 2008 $128.73 2009 $126.18 -1.98% 2010 $135.35 7.27% 2011 $137.75 1.77% 2012 $173.43 25.90% 2013 $203.83 17.53% 2014 $225.77 10.76% 2015 $249.90 10.69% 2016 $189.72 -24.08% 2017 $267.25 40.87% 2018 $328.06 22.75% $2,165.97 XIU Diff $2,745.85 126.77% And now the real numbers : 2009 31.45% 2010 13.62% 2011 -9.24% 2012 7.88% 2013 13.03% 2014 12.04% 2015 -7.91% 2016 21.14% 2017 9.57% 2018 -7.72% Q.E.D. My calculations used the Distributions paid by XIU, not the price changes: XIU Dist % Ch 2018 0.688 10.26% 2017 0.624 37.44% 2016 0.454 -25.94% 2015 0.613 7.73% 2014 0.569 7.56% 2013 0.529 9.75% 2012 0.482 8.80% 2011 0.443 -0.67% 2010 0.446 4.45% 2009 0.427 -10.11% 2008 0.475 29.43% 2007 0.367 XIUs distribution did not i...
by cannew
23 May 2019 10:16
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

https://en.wikipedia.org/wiki/Beardstown_Ladies The club gained media attention after it authored a book, published in 1995, titled The Beardstown Ladies' Common-Sense Investment Guide: How We Beat the Stock Market - And How You Can Too, which claimed that the club produced annual returns of 23.4% since inception. The club authored additional books including The Beardstown Ladies' Stitch-In-Time Guide to GrowingYour Nest Egg: Step-by-Step Planning for a Comfortable Financial Future in January 1996 and The Beardstown Ladies' Pocketbook Guide to Picking Stocks in April 1998 [...] After an audit by PricewaterhouseCoopers, the club noted that it had made a computer formula error in calculating its returns and its actual annual returns were 9.1...
by cannew
23 May 2019 09:51
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

I've probably mentioned this before, but it relates to the post. My wife setup a bank DRIP for each of our grandkids in 2007. She added funds for the first two years (total $5500) and has not added any money since. So the kids have owned the one bank stock going through the financial crisis, recovery and the ups and downs since. Every year since 2007 the income from their holdings has grown each and every year by at least 10% each year (that's income not market value). Here's our grand daughter's income each year: She took over the DRIP when she turned 18 in 2016 and started adding $100 per month (plus Xmas cash gifts): Year Div %Gth 2008 217.30 2009 253.81 16.80% 2010 281.43 10.88% 2011 323.94 15.10% 2012 379.31 17.09% 2013 431.66 13.80% ...
by cannew
22 May 2019 14:58
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

At 21 years of age, owning only one bank stock is no big deal, especially if one of the big 5. Any of them may languish and may suffer years of negative returns but are at near zero risk of going insolvent. It becomes a much bigger deal as she gets older, starts to invest in earnest, and has larger amounts at stake. Chances are this capital will be tapped for something in her '20s anyway, e.g. down payment on a condo, etc. My wife has always told her to treat this as the start of her retirement fund and never touch the money, other than adding to it. She seems to accept it in that light and though she records that transactions in a worksheet, she never calculates its market value or worries about the stock price. She adds what she can and ...
by cannew
22 May 2019 12:56
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

Well aware of your approach Cannew. We and our kids all have an equity portfolio to 'scratch that itch' and they have done equally well. At a point though we have all moved to funds for diversity, accepting a potentially lower return from that segment of our investments. That's because as our total assets get larger, I don't think it is prudent to have too large a $ amount in one company regardless of it still being within some % guideline that a person may have, and even if it is a 'blue chip company. Rational or not, for me at least, having 250k on one horse is still 250k. Eventually the challenge becomes finding other companies that you want to 'buy and hold' with new money. Instead, funds like vbal and vgro have become our new investme...
by cannew
22 May 2019 10:47
Forum: Financial Planning and Building Portfolios
Topic: TFSA and RRSP for my 18 year old son
Replies: 42
Views: 2419

Re: TFSA and RRSP for my 18 year old son

I've probably mentioned this before, but it relates to the post. My wife setup a bank DRIP for each of our grandkids in 2007. She added funds for the first two years (total $5500) and has not added any money since. So the kids have owned the one bank stock going through the financial crisis, recovery and the ups and downs since. Every year since 2007 the income from their holdings has grown each and every year by at least 10% each year (that's income not market value). Here's our grand daughter's income each year: She took over the DRIP when she turned 18 in 2016 and started adding $100 per month (plus Xmas cash gifts): Year Div %Gth 2008 217.30 2009 253.81 16.80% 2010 281.43 10.88% 2011 323.94 15.10% 2012 379.31 17.09% 2013 431.66 13.80% 2...
by cannew
09 Jan 2019 16:55
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2018?
Replies: 133
Views: 6032

Re: How Did You Do in 2018?

Computershare and other Transfer Agents only has one Application form when you wish to enroll in a company Dividend Reinvestment Plan or "DRIP" for short. Once you complete the application you have the choice of reinvesting the dividends or having all or part of them deposited to your bank account. With broker reinvestments it's all not none. The other difference is with a DRIP you can purchase additional shares at no cost provided the company offers the Share Purchase Plan, SPP. So Computershare makes it easier to enroll in a DRIP. That does not make it a "DRIP account", because, as you write, one can have no DRIPs at all with Computershare. You can call it a "DRIP account" if you wish so, but not that many p...
by cannew
09 Jan 2019 16:25
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2018?
Replies: 133
Views: 6032

Re: How Did You Do in 2018?

There is no such thing as a "DRIP account". One can set up a DRIP in a RRIF / TFSA / non-registered etc. Dividend reinvestment and a DRIP account are two different things! We have a DRIP account with Computershare,where the dividends from those shares are deposited to our savings account, rather than being reinvested. Once again, you are mistaken. If the dividends from your Computershare account are paid to your savings account, there is no DRIP (not sure why would you call it a "DRIP account with Computershare"). If the dividends from your Computershare account are reinvested, than you have enabled DRIP in the account. The account type has not changed, it's still non-registered, or RRIF, or whatever. There is no such t...
by cannew
09 Jan 2019 12:15
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2018?
Replies: 133
Views: 6032

Re: How Did You Do in 2018?

AltaRed wrote: 09 Jan 2019 11:56 Cannew measures differently than the rest of us, so his number has a different meaning relative to this thread. Health of the lawn (Total Return) seems to be unimportant to him... only the grazing of the grass on an ongoing basis.
Nice analogy AltaRed. Fortunately, we do not need to eat all the grass and it turns to seed, growing more grass.
by cannew
09 Jan 2019 12:02
Forum: Retirement, Pensions and Peace of Mind
Topic: TFSA Contribution Amount Increased to $6,000 for 2019
Replies: 37
Views: 5421

Re: TFSA Contribution Amount Increased to $6,000 for 2019

As part of our RRIF withdrawal, we will transfer shares in-kind, of $6k to each, to our tfsa accounts.
by cannew
09 Jan 2019 11:21
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2018?
Replies: 133
Views: 6032

Re: How Did You Do in 2018?

We still hold only 12 company stocks in all our accounts, 2 RRIF, 2 TFSA, a Joint and DRIP accounts. There is no such thing as a "DRIP account". One can set up a DRIP in a RRIF / TFSA / non-registered etc. Our only activity is reinvesting dividends and transferring RRIF shares. So, all we monitor is our income growth each year and for 2018 our income was up 10.72% over 2017. All our stocks increased their dividend in 2018 and expect the same for 2019. If your "income was up 10.72% over 2017" due in part to the fact that you transferred in-kind shares from your RRIF to non-registered, and you're measuring the dividend income in the non-registered account, the 4 digit precision number of 10.72% is totally meaningless for ...
by cannew
09 Jan 2019 11:09
Forum: Financial Planning and Building Portfolios
Topic: How much should you have in stocks?
Replies: 58
Views: 3629

Re: How much should you have in stocks?

One should separate savings/emergency funds from investments. Everyone should have money available for unexpected or immediate needs. That amount will depend on many factors and will vary for each person. Investments should be totally separate and then we can apply or consider the OP's question. IMO it depends upon how one invests and their investment objectives.
As an Income investor, now retired and no longer trading, we are 100% DG equities. Our objective is to generate a growing income from our investments regardless of the markets status. We expect our investments to provide an income increase each year, whether funds are added to the accounts or not, even during markets corrections.
by cannew
09 Jan 2019 10:53
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2018?
Replies: 133
Views: 6032

Re: How Did You Do in 2018?

We still hold only 12 company stocks in all our accounts, 2 RRIF, 2 TFSA, a Joint and DRIP accounts. Our only activity is reinvesting dividends and transferring RRIF shares. So, all we monitor is our income growth each year and for 2018 our income was up 10.72% over 2017. All our stocks increased their dividend in 2018 and expect the same for 2019.
by cannew
05 Oct 2018 14:42
Forum: Retirement, Pensions and Peace of Mind
Topic: complicated inheritance situation
Replies: 45
Views: 7458

Re: complicated inheritance situation

Not uncommon, especially for elders. Recently helped a 95 yr old re-do his well. He wanted to ensure all went to his only daughter. First he did not consider if she passed away before him, regardless how unlikely. We had it go to the grandkids, but again had to add additional clauses should one or both of them pass. Not complicated but the What If's are often missed.
by cannew
16 Sep 2018 10:59
Forum: Financial Planning and Building Portfolios
Topic: how to deal with a single stock holding
Replies: 16
Views: 788

Re: how to deal with a single stock holding

Computershare charges $35 plus $0.03 per share (minimum $19.99). So you'll pay $55. Then the shares are sold and there is no hassle of opening an account, transferring and selling. Just spend the $55 and get it over with. Whatever you do there will be Capital Gains to claim on her taxes.
by cannew
25 Aug 2018 19:10
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Dogs of the TSE
Replies: 523
Views: 103633

Re: Dogs of the TSE

https://www.heartlandadvisors.com/Insights/White-Papers/Dividends-A-Review-of-Historical-Returns I've also been following a sector based strategy for individual Canadian equities long before Heartland Advisors noted this: "A naive investment strategy, which represents another kind of yield trap, is to invest in the highest-yielding stocks while ignoring the capitalization, sector, and style concentrations that would inevitably result. An investor blindly pursuing this strategy could be taking undue common factor risks. For example, a portfolio favoring allocations to high-yielding sectors at the beginning of 2008 would likely have heavily overweighted financial services stocks heading into the financial crisis." The above would h...
by cannew
24 Aug 2018 11:14
Forum: Financial Planning and Building Portfolios
Topic: New to self investing! Seeking advice with my registered accounts
Replies: 28
Views: 1967

Re: New to self investing! Seeking advice with my registered accounts

AltaRed wrote: 24 Aug 2018 10:34
behappytoday wrote: 24 Aug 2018 10:12Probably no individual stock with this online broker.
There is a school of thought that investors, who go with brokers that have 'cheap' trades such as IB, end up churning (trading) their portfolios a lot more than those who are more likely to be 'buy and hold' with $10 commissions. Studies have been done that show, on average, churners underperform the market overall since they don't ultimately 'buy low' and 'sell high' often enough to beat someone who just sat on his/her hands long term. IOW, few have the algorithms/discipline/time to 'trade' successfully. Other than bragging rights, there is no particular social need to be a 'stock jock'.
Totally agree!! Especially for beginners.
by cannew
24 Aug 2018 10:37
Forum: Financial Planning and Building Portfolios
Topic: Stock Sector Allocation
Replies: 14
Views: 2086

Re: Stock Sector Allocation

Hold these in 2 RRIF's, 2 TFSA, Non-Reg and DRIP accounts It helps if one is using a terminology which is understood by all. One can DRIP in a RRIF, TFSA or non-registered account. There is no special account category defined as "DRIP". Personally, I would avoid DRIPs like the plague in a non-registered account. Speaking of RRIF's, it makes little sense to DRIP in an account from which there are annual mandatory withdrawals. Our DRIP's with Computershare is where we have the dividends deposited directly to our bank without any fees. All our other accounts DRIP but they re-invested to buy more shares. DRIP's, at least the traditional ones, are great for beginners who wish to invest small amounts with individual stocks (those which...
by cannew
23 Aug 2018 10:24
Forum: Financial Planning and Building Portfolios
Topic: Stock Sector Allocation
Replies: 14
Views: 2086

Re: Stock Sector Allocation

Fully retired and living off CPP\OAS (being cut back) and a portion of our dividends, Over the years we've consolidated to just 4 sectors, almost evenly balanced. Hold these in 2 RRIF's, 2 TFSA, Non-Reg and DRIP accounts:
Banks
Communication
Utilities
Pipelines
by cannew
22 Aug 2018 13:04
Forum: Financial Planning and Building Portfolios
Topic: On Investing
Replies: 22
Views: 1407

Re: On Investing

"But individual outperformance comes at the cost of further group underperformance – and not everybody can be a winner." Like many the article refers to Buying & Selling. The other point, IMO, is investors should ignore trying to beat anyone or any market. I like to suggest investing for one's Future Income by sticking with quality companies that pay and grow their dividend. You don't need to own them all or worry that some have done better than the ones you hold. I don't own TD because when I was buying, TD always seemed expensive. Looking back I may have done better paying the higher price, but the other bank stocks I do own have done almost as well, so no real loss. Stick to quality, reinvest the dividends, add to your posi...