Tag Archives: stocks

Investing in stocks to hedge against your lifestyle costs

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A few years ago, before I had a personal finance blog of my own and was just an anonymous reader, I was a huge fan of Jacob of Early Retirement Extreme. His progress and achievements are admirable, but his methods are not for the faint of heart (including taking cold showers in order to save on utility costs). One of his tactics for accumulating so much wealth so fast on such a modest income was that, if he couldn’t afford an activity with his passive income from investments, he simply would not partake in it. Instead, he would forego indulging in that spend and put the money into his investment accounts until they paid out enough in dividends to let him go back to it again. This requires a lot of discipline I don’t possess, but it doesn’t mean my goal isn’t to ultimately replace my salary or full-time income […]

The 5 Stocks Every Millennial Needs To Have In Their Portfolio

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I’m a big advocate of investing in your 20’s. It is not nearly as scary or challenging as people make it out to be. Signing up for an online brokerage account (I use Questrade) takes only a few minutes and requires just $1,000 to get started. When it comes to building your portfolio, there are 3 main goals: Income: investments that produce money for you in the form of interest or a dividend on a monthly, quarterly, semi-annual or annual basis. Growth: investments that will grow in value over time, so that you can reap capital gains when you sell. Security: investments that are safe and won’t lose your money in the long run. See? Very simple stuff! As for how to select stocks, the best resource I’ve ever found on investing is The Intelligent Investor: The Definitive Book on Value Investing (even Warren Buffet, a student of Graham, credits him for his investment […]

Facebook IPO: why I didn’t buy

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There was a lot of hype about Facebook becoming a publicly traded company. The stock went public last week, and leading up to the big event there were endless speculations about its potential. Buying stocks is definitely on my top-10-favorite-things-to-do list, but I had no intention of every buying any shares of FB for one big reason: I hate Facebook. I didn’t use it for years because I hate it so much. The only reason I have it now is because I have to in order maintain our Facebook Page for work. Having a great affection for a company is not always one of my reasons-to-buy their stocks, but it certainly helps. Outright loathing a company is definitely a reason-NOT-to-buy for me though. That said, I could have been persuaded to by Facebook if it was a better stock. After all, it fits my personal criteria of being a company […]

PF Achievement Unlocked: monthly dividend income

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Yesterday, I bought another dividend stock and succeeded at one of my baby-steps towards self-sustaining wealth: I have a passive monthly dividend income.  Albeit, a small one, but it’s there! I know some people disagree with my decision to put money into savings & investments when I still have student loans, but acquiring income-generating assets is just as important to me as eliminating debt. I used to read Early Retirement Extreme religiously (I still drop by occasionally but I’m not as diligent because I just don’t get the never-travel and take-cold-showers thing), and I was fascinated by the idea that you could accumulate enough wealth for it to be self-sustaining — and to do so on a middle-class income. I really never thought I would be destined to be wealthy because I expect to earn an average income for the entirety of my career, and assumed I would always need to […]

Stock investment wisdom from my grandpa

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“You have to buy stocks the way you would a nice suit. Pick a high-quality, well-established brand — then wait for it to go on sale.” – my Opa. Everyone knows investing in the stock market is about buying low & selling high, though intuition tends to make us act the opposite: if stock prices are down, we feel motivated to sell because we’re losing money and if they’re going up, we feel motivated to buy more because they seem to be money-makers. I take my Opa’s advice. I actually wish I had more money to put more to use under his direction, but sadly I still don’t have a lot of cash to play with. Nevertheless I implement his strategy by watching big name companies, and waiting for a good price to buy. I watch the shares of many companies you might be familiar with: Coca-cola, Pepsi, McDonald’s, Proctor […]