Comments on: My Investing http://blog.canadian-dream-free-at-45.com/2008/04/22/my-investing/ Tue, 07 Feb 2012 18:14:07 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Weekly Dividend Investing Roundup - April 26, 2008 » The Dividend Guy Blog http://blog.canadian-dream-free-at-45.com/2008/04/22/my-investing/comment-page-1/#comment-5033 Weekly Dividend Investing Roundup - April 26, 2008 » The Dividend Guy Blog Sat, 26 Apr 2008 12:35:38 +0000 http://blog.canadian-dream-free-at-45.com/?p=404#comment-5033 [...] The start of an investing plan [...] [...] The start of an investing plan [...]

]]> By: Sarlock http://blog.canadian-dream-free-at-45.com/2008/04/22/my-investing/comment-page-1/#comment-4972 Sarlock Thu, 24 Apr 2008 04:47:28 +0000 http://blog.canadian-dream-free-at-45.com/?p=404#comment-4972 When I started investing some 10-12 years ago, I started with the recommended palette of mutual funds from the bank's RRSP advisor. Over the years, the funds went up, they went down, made me some money but not a lot. As my investment knowledge increased, I opened a trading account and started to very carefully experiment. I made some mistakes along the way (this is the best way to learn, unfortunately) but luckily it did not cost me a lot of money. I am in the process of completely removing myself from mutual funds now. For the equity portion of my portfolio, I am assembling a diversity of stocks that I am holding long term (10+ years each). Some are dividend-bearing, some are growth, some resource, some tech, some retail, etc. That extra percent or two that I would have gained by having a "smart" investment analyst picking my stocks for me via a mutual fund would just go toward paying the fund's fees, so I don't really come out ahead. Write out a list of rules that you must obey with your investment strategies so that moments of fear or weakness do not make you do things you may regret (such as selling in panic or holding on to a sinking stock when your rules say "sell"). This will help you keep your portfolio on track with your long term goals. When it comes to amateur investors trying to "time" the market, it really amounts to gambling... and I'd rather not gamble with my retirement money. Pick well and go long, ride out the bumps. When I started investing some 10-12 years ago, I started with the recommended palette of mutual funds from the bank’s RRSP advisor. Over the years, the funds went up, they went down, made me some money but not a lot.

As my investment knowledge increased, I opened a trading account and started to very carefully experiment. I made some mistakes along the way (this is the best way to learn, unfortunately) but luckily it did not cost me a lot of money.

I am in the process of completely removing myself from mutual funds now. For the equity portion of my portfolio, I am assembling a diversity of stocks that I am holding long term (10+ years each). Some are dividend-bearing, some are growth, some resource, some tech, some retail, etc. That extra percent or two that I would have gained by having a “smart” investment analyst picking my stocks for me via a mutual fund would just go toward paying the fund’s fees, so I don’t really come out ahead.

Write out a list of rules that you must obey with your investment strategies so that moments of fear or weakness do not make you do things you may regret (such as selling in panic or holding on to a sinking stock when your rules say “sell”). This will help you keep your portfolio on track with your long term goals.

When it comes to amateur investors trying to “time” the market, it really amounts to gambling… and I’d rather not gamble with my retirement money. Pick well and go long, ride out the bumps.

]]> By: Jordan http://blog.canadian-dream-free-at-45.com/2008/04/22/my-investing/comment-page-1/#comment-4961 Jordan Wed, 23 Apr 2008 20:50:35 +0000 http://blog.canadian-dream-free-at-45.com/?p=404#comment-4961 I'm in the middle of restructuring our investments as well. I've been relying on my financial adviser for the past 3 years while I got into the swing of being a father. Looking back over it now is pretty disappointing with only a 4.8% annualized return. Her investment philosophy is contrarian value investing, but she explained the reason for the low returns was being overly conservative and because I was not involved enough. The more I've been researching online the less confident I am in mutual funds, stock picking/timing, and financial advisers being able to consistently beat the market. I'm much more inclined to go the "couch potatoe" or "lazy portfolio" style asset allocation / indexed investing. I'm also lazy enough to invest and not look at it or worry about it, so indexing certainly has it's appeal there. Right now my concern is even with an indexed approach, is right now a good time to dump cash into the market right on the verge of a lot of recession talk? I’m in the middle of restructuring our investments as well. I’ve been relying on my financial adviser for the past 3 years while I got into the swing of being a father. Looking back over it now is pretty disappointing with only a 4.8% annualized return.

Her investment philosophy is contrarian value investing, but she explained the reason for the low returns was being overly conservative and because I was not involved enough.

The more I’ve been researching online the less confident I am in mutual funds, stock picking/timing, and financial advisers being able to consistently beat the market.

I’m much more inclined to go the “couch potatoe” or “lazy portfolio” style asset allocation / indexed investing. I’m also lazy enough to invest and not look at it or worry about it, so indexing certainly has it’s appeal there.

Right now my concern is even with an indexed approach, is right now a good time to dump cash into the market right on the verge of a lot of recession talk?

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