Weekend Reading: Personal finance Edition

Most recent stories in Weekend Reading: Personal finance Edition

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  Robb Engen

  

  3 days ago

  Aspiring retirees consider three strategies to make sure they don’t run out of money

  The Globe and Mail - Frederick Vettese

  Pat, 63, and Maggie, 60, are about to retire. Between the two of them, they have $800,000 in RRSPs and $200,000 in TFSA assets. They are also entitled to 90 per cent of the maximum CPP pension plus full OAS pensions. Their goal is to draw as much income as they can from their savings while being …

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  Robb Engen

  

  4 days ago

  Poor millionaire homeowners: Retirement with lots of home equity and not enough savings

  The Globe and Mail - Rob Carrick

  When you celebrate real estate like we do in Canada, you end up with anomalies such as people who are house rich and retirement poor. It all starts when you stretch your finances to buy a house and justify it with the expectation of building wealth through home equity. A preview of how this might …

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  Robb Engen

  

  5 days ago

  Two Couples, One KEY Difference - The Wealthy Barber

  thewealthybarber.com

  I had an interesting experience two weeks ago, an unusual one. One that’s left an impression on me. One I felt that it was important to share. …

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  Robb Engen

  

  5 days ago

  Renting vs. Buying a Home: What People Get Wrong

  YouTube

  People tend to assume that homes are great investments - they’re not, that mortgages are a wealth building hack - they help, but as much as some people think, that paying off a mortgage lowers your housing costs - it actually raises them, and that owning a home makes people happy - it might, but don’t count on it. ------------------ Meet with PWL Capital: https://pages.pwlcapital.com/en-ca/contact-us?utm_source=content&utm_medium=youtube&utm_campaign=benfelix_yt *PWL Rent vs. Buy Calculator* https://research-tools.pwlcapital.com/research/rent-vs-buy *Sample Case from the Video* https://research-tools.pwlcapital.com/research/rent-vs-buy?isPortfolioTaxable=false&timeHorizon=50&province=ON&incomeInit=50000&purchasePrice=512300&downPaymentPct=20&ammortization=25&interestRate=5&propertyTaxRate=1&maintenanceCostPct=1&realEstateGrowthRate=3.5&homeInsuranceMonthlyInit=100&rentInsuranceMonthlyInit=40&rentInit=2119&assetAllocation=100&inflation=2.5&elgDividends=0.91&foreignDividends=0.9899999999999999&unrealizedGains=4.61&realizedGains=0.51&income=0&fwtRate=15 *Maintenance Costs* -Mayer, in a response to Smith and Smith (2006), suggests a range of 2–3% for maintenance and capital expenditure. https://www.brookings.edu/wp-content/uploads/2006/03/2006a_bpea_smith.pdf -Harding, Rosenthal, and Sirmans (2007) find that U.S. housing depreciates at roughly 2.5% per year gross of maintenance spending, and 2% per year net. https://doi.org/10.1016/j.jue.2006.07.007 -Bokhari and Geltner (2016) find an overall average net of maintenance depreciation rate of 1.5% per year net of maintenance. https://doi.org/10.1111/1540-6229.12156 -In National Accounts data, Statistics Canada reports average maintenance and repair costs over our sample period of 0.82% as a proportion of net residential housing stock, and renovation spending of 2.48%. -For calculating the Consumer Price Index, Statistics Canada uses 1.5% of the building value for homeowners' replacement cost (depreciation). Homeowners' replacement cost comprises 24.85% of the owned accommodation item in the CPI, while homeowners' maintenance and repairs comprise 9.97%, or 0.60% of the building value. Together, this suggests depreciation and maintenance costs of 2.1% of the building value. *The Psychology of Home Ownership* Video: https://youtu.be/0G_OSohLC_A?si=5mWx4KanW7HzM57T References: https://zbib.org/dfc892f743e14459bea621fd9fbba1fa ------------------ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix Visit Rational Reminder: https://rationalreminder.ca/ Join the Rational Reminder Community: https://community.rationalreminder.ca/ Follow the Rational Reminder on: - Twitter: https://www.twitter.com/RationalRemind - Instagram: https://www.instagram.com/rationalreminder/ Visit PWL Capital: https://www.pwlcapital.com/ Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIn: https://www.linkedin.com/company/pwl-capital/ You can find the Rational Reminder podcast on Google Podcasts: https://www.google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz Apple Podcasts: https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2 Spotify Podcasts: https://open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA ------------------

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  Robb Engen

  

  Dear Financial Planners and Advisors: Retirement Planning Isn’t Just About the Numbers—It’s About the Person

  boomingencore.com - Susan Williams

  The traditional model of retirement planning is under pressure. Clients are no longer just looking for someone to manage their money—they're looking …

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  Robb Engen

  

  The Most Difficult Account For Investors To Manage

  boomerandecho.com - Robb Engen

  I recently made a bold change to de-risk my portfolio, which now consists of just 35% globally equities and 65% short-term bonds. This wasn’t in …