Michael James on Money
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
I was a guest on a TD Direct Investing webinar to discuss the case for delaying the start of CPP and OAS payments with Robert Moysey. He did a great job asking good questions and keeping me on track. See the link to the video below.| Michael James on Money
In a weak moment, I agreed to appear on a podcast. I like podcasts, but I’m not trying to build my brand or anything like that, so my sole motivation is to help others. This can be a weak motivator in the face of doing actual work.| Michael James on Money
Having listened to a few episodes of Ramit Sethi’s podcast where he helps couples face and conquer their money issues, I looked forward to reading his book Money for Couples. In it, Sethi distills his experience helping hundreds of couples into strategies that cover a wide range of problems. It’s clear that Sethi has the skills and experience necessary to help couples with their financial problems. However, creating a book to help people solve these difficult issues on their own is ...| Michael James on Money
As investors age, two things become increasingly apparent: they need more help with their finances and investments, and they’re more vulnerable to financial exploitation. Depending on who you listen to, financial advisors are either the solution to these problems, or they are part of the problem.| Michael James on Money
I recently learned an interesting new way to abuse statistics using regressions. (I’ll describe it first in a way that requires no math background, and give some math details at the end.) It can be difficult to tell if those who abuse statistics are dangerous and well-intentioned or dangerous and know fully what they’re doing. Either way, they’re dangerous.| Michael James on Money
The 2024 investment return for my overall portfolio measured in Canadian dollars was 18.0%, which is below my benchmark return of 19.0%. The difference is primarily due to my choice a few years back to adopt an automated plan that shifts gradually away from stocks when stock prices are high as measured by the cyclically adjusted price-to-earnings ratio (CAPE) of world stocks. My benchmark doesn’t take CAPE into account.| Michael James on Money
Here’s a scenario related to credit cards that plays out far too often. To some degree it’s a problem from the past, but it still affects older people today. It has the potential to affect younger people too if they’re not careful.| Michael James on Money
The subject of foreign workers is heating up in the U.S. right now, and has been a hot topic in Canada in recent years. Local workers often see foreign workers as cheap labourers who take away their jobs. Employers see foreign workers as a way to find scarce skills and cut costs. As is common in debates, both sides are partially right and partially wrong.| Michael James on Money
Recently, Braden Warwick at PWL Capital created an excellent CPP calculator that we can all use. One of the numbers this calculator reports is the IRR (Internal Rate of Return) you’ll get between your CPP contributions and the CPP pension you’ll collect. Some financial advisors (but not Braden) decide it makes sense for their clients to take CPP as early as possible (age 60), and invest the proceeds. Their reasoning is that they believe they can earn a higher return. Here I explai...| Michael James on Money
Inflation is a risk we have to face in financial planning, particularly in retirement. We need to measure inflation risk correctly to be able to make reasonable financial plans. The best guide we have to the future takes into account past inflation statistics. But the field of statistics is full of subtleties, and even Dimensional Fund Advisors (DFA) can make mistakes.| Michael James on Money
Richard Oldfield was an investment manager for three decades, and he evaluated and appointed investment managers for a decade. His book, Simple but not Easy: A Practitioner’s Guide to the Art of Investing, was first published in 2007, and his second edition, that I review here, came out in 2021. The quality of the writing makes it a pleasure to read, but it comes from a time when “investing” meant stock picking, and few doubted that active investing based on star managers was the be...| Michael James on Money
When it comes to stocks, index investing offers many advantages over other investment approaches. However, these advantages don’t always carry over to other asset classes. No investment style should be treated like a religion, indexing included. It pays to think through the reasons for using a given approach to investing.| Michael James on Money
Authors Tony Martin and Eric Tyson have updated their book, The Canadian’s Guide to Investing, but it certainly does not seem very up-to-date. Despite a few references to ETFs and some updated examples, most of the text seems decades old and no longer very relevant. There are some good parts, but there are better choices for investment books.| Michael James on Money
Recent Rational Reminder podcasts (319 and 321) have had a debate about tax rates on RRSP contributions and withdrawals. Most people agree that when you contribute, you’re lowering your taxes at your marginal tax rate. The debate concerns withdrawals. Some say that RRSP withdrawals come at your “average, or effective tax rates, not your marginal tax rate.” Here, I address this question.| Michael James on Money
Suppose a casino offered the following bet. You roll six fair dice. If anything but all sixes shows up, you get $20. But if all sixes show up, you lose a million dollars. There are a number of practical problems with this game. The casino would demand a million dollar deposit in advance, and the odds are way too sensitive to imperfections in the dice and to player skill at not throwing sixes. But this is a thought experiment designed to shed light on real world financial events.| Michael James on Money
My post describing my experience with the dual-motor long-range Tesla Model 3 I bought back in April 2019 generated further questions about battery life, recalls, and driving range in winter that I answer here.| Michael James on Money
Back in April 2019, I bought a dual-motor long-range Tesla Model 3. I had some concerns about buying an electric car, but my research showed that none of these concerns were likely to be real problems. Still, buying the car felt like a leap of faith. Now that I’ve had it for 5 years and 4 months, I can say that it’s been the best car I’ve owned, even better than my Lexus GS400.| Michael James on Money
In his book Tightwads and Spendthrifts, marketing professor Scott Rick promises advice for “financial aspects of intimate relationships.” What got my attention early is that his guidance “is rooted in rigorous behavioral science.” Applying the scientific method to human interactions is challenging, but it is generally better than relying on opinions. The book gives useful insights into how people think about spending money.| Michael James on Money
Tony Robbins’ latest book, The Holy Grail of Investing, written with Christopher Zook, is a strong sales pitch for investors to move into alternative investments such as private equity, private credit, and venture capital. I decided to give it a chance to challenge my current plans to stay out of alternative investments. The book has some interesting parts, mainly the interviews with several alternative investment managers, but it didn't change my mind.| Michael James on Money
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
A blog about money, personal finance, and investing.| www.michaeljamesonmoney.com
