As you read this post, I’m adding the final touch to my trip to Vietnam. I will start the year on a strong note as we are doing a family trip to this beautiful country for the entire month of January!
I will keep writing on this blog and will post update of my trip on my Youtube Channel. In the meantime, let’s review some of my favorite articles from this blog:
Dividends Are Relevant and Can Beat the Market (still an answer to Ben Felix)
Not too long ago, I watched an interesting video on YouTube which claimed that “dividends are irrelevant.” The video comes from my archenemy, Ben Felix. Ben is a financial advisor who sells ETF products and has also written a column for the Globe & Mail, a while back, which had several caveats. I, myself, have written a complete blog about Dividend Growth Investing Vs ETFs Investing in the past, but Ben just poked the bear in me, once again, with his new video.
The arrival of a Lump Sum of money would likely create mixed emotions. It could come from a former employer pension plan, an inheritance, the sell of a property or a business, or simply because you have been sitting on the market sideline for a while and you are now ready to invest. In any case, receiving an amount over $100,000 is quite exciting. You picture several projects and a world of possibilities open-up. Unfortunately, the sudden arrival of a Lump Sum of money comes with it loads of concerns. Today, I’m going to answer a crucial question:
How to Invest a Lump Sum of Money?
I tend to have a simple and rational way of looking at the market. Whatever will happen in 2020 will happen- no matter what I think, no matter how I invest. It was also right for last year.
Investing as a Canadian comes with it’s fair share of challenges. The first is that we come with a very biased background. We are fortunate to have the Federal Government to set protectionism rules around our banks and our telecom. This situation creates perfect oligopoly where everybody makes profit. While it is not optimal for consumers, it does ensure some stability.
I read about many dividend bloggers who just love international dividend stocks. International companies open the door to additional diversification and growth vectors. Since many international dividend stocks trade on the New York Stock Exchange (NYSE), it is easy to buy them. In fact, some of international stocks even pay their dividend in US dollars!
You’ve probably figured by now that I’m not going cash at anytime. Not 50%, not 30%, not even 5%. I’m always 100% invested in equities (here’s my portfolio). But since so many investors think it’s the way to go, I wanted to see the impacts (both positives and negatives) of staying invested vs keeping 30% or 50% in cash to wait for the dip.
I faced this very situation not too long ago: Invest now or wait. $100,000 is a lot of money. I worked very hard to build that nest egg. For a long time, it was growing inside my former employer’s pension plan. When I finally realized that I didn’t want to wait until I’m 65 to enjoy freedom, I quit my job and asked for my pension check!
With any red flags, these are not sure shot rules. It’s not because you see one of many factors happening at the same time that the stock is an automatic sell. It doesn’t mean the company will cut its dividend either. But it gives you a very good idea that this specific stock isn’t as strong as others.
I’m taking a break from the dividend world today to tell you a little bit more about my story. I’ve always been as much transparent as I could with you, and this won’t change today. On July 1st, 2017, I officially quit my job as a private banker and started my journey as an entrepreneur.
This is also a great way to end this “best of” as I’m now able to travel the world with my family because I have the ability to run my business with a laptop and a wifi connection!
I wish you all health & wealth for the New Year!