The Stingy News Weekly: 02/15/2020
Stingy News Flash
My friend David Aston recently published a retirement guide for Canadians. You can buy a copy of the book at Indigo or Amazon. Here's how he describes his work.
The Sleep-Easy Retirement Guide:
Answers to the 12 Biggest Financial Questions that Keep You Up at Night
The Sleep-Easy Retirement Guide sets out to help middle class Canadians answer the big, pressing financial questions associated with retirement including figuring out: how big a nest egg they'll need; how long they will need to continue to work; how much they can draw from their portfolio each year in retirement; how much they will need to spend to get the retirement lifestyle they want; and when they should start drawing government pensions.
The book has a practical bent towards helping Canadians figure out their key objectives in concrete terms with actual numbers. For example, using common assumptions that the author describes, he will help you figure out just how big a nest egg you should generally have if, say, you're a couple planning to retire at age 65 while spending an above-average $80,000 a year combined in retirement. (In that case, the size of nest egg required is over $1 million, although he makes it clear that you can still expect a fulfilling retirement if you have far less money to spend.) He includes a chapter with eight case examples and statistics on average seniors spending to help provide you with a sense of the over-all standard of living that you can expect at different spending levels. He provides statistics to show that average seniors spending (with a few adjustments that he makes) is only $65,000 a year combined for couples , and $43,000 a year for senior singles.
While the book deals broadly with retirement planning, there is a chapter on investments that might be of particular interest to do-it-yourself investors who are retired or nearing retirement. In this chapter, the author discusses investment strategies designed to help generate dependable cash flow that can meet your spending needs in retirement while helping to insulate you to a degree from the ups and downs in the market. In addition to discussing the role of well-known basic investment principles such as setting an appropriate equity/fixed income asset allocation, he also discusses more specialized strategies such as: income investing using reliable dividends and interest; structuring your portfolio using a 'bucket' strategy; and converting part of your portfolio to annuities.
The author has written freelance articles for MoneySense, the Globe and Mail, Morningstar.ca, and has recently started writing a regular column for the Toronto Star. He has a chartered financial analyst designation and an M.A. in Economics.
Charlie Munger AGM
"Investing legend Charlie Munger, Berkshire Hathaway vice chairman and chairman of the Daily Journal, speaks to shareholders at the newspaper's annual meeting. Munger is best known for his steady role as the right-hand man of investing legend Warren Buffett." [video] [Munger]
"We have spent the past year studying every financial crisis in the US since 1970. We have done this work for your benefit, so that you will keep your head when all about you are losing theirs. When weak hands fold, when forced sellers liquidate, we hope this research will help you make good decisions." [Value Investing]
Great to gone
"Success often contains the seeds of its own destruction, and not just when it comes to family fortunes." [Markets]
"While they may not have been known by the same names, many modern investment factors have historical roots stretching back centuries." [Value Investing]
"Sequence risk is the risk that investment returns happen in an unlucky order. It can make or break portfolios" [Retirement]
Epidemics and market returns
"A global pandemic that killed 3% of the Earth's population only sent markets down 10% over a period of 4 months. This is a stunning result. The worst virus since the bubonic plague and markets go through a run-of-the-mill decline? I would not have guessed that beforehand." [Markets]
S&P/TSX60 Value Screens
DOW 30 Value Screens
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