Friday, February 25, 2011

Short Takes: Trapped Trillions, Getting the Best Mortgage Rates, and more

The winners of the TurboTax giveaway were

1. Rob
2. Lyne

Congratulations!  Both winners have been contacted by email.  Thanks to all who entered.  On with the interesting articles this week:

Jason Zweig explains why U.S. companies are sitting on mountains of cash they can’t access. This hurts job recovery and explains why some companies borrow money even while they have large cash reserves.

Canadian Mortgage Trends summarizes the Bank of Canada’s study on how people get the best mortgage rates. The most interesting part to me was the fact that new clients get better deals from banks because existing clients face switching costs.

Canadian Couch Potato shifts his gaze to the best way to rebalance a portfolio. Beyond rebalancing with strategically-applied deposits and withdrawals, the number one way that people can benefit from rebalancing is to buy stocks during a crash and sell them during a boom. Sadly, these are exactly the times when investors are most likely to decide not to rebalance.

Canadian Capitalist explains the new withholding taxes on stock option gains. The stock option world has changed greatly since the tech boom of the late 1990s.

Preet Banerjee has some horror stories from people who haven’t been diligent about changing the beneficiaries on their RRSPs.

Big Cajun Man reminds us that if your medical expenses are high enough you can get a break on your income taxes.

Money Smarts says that retirement isn’t all-or-nothing. Don’t give up just because you don’t think you can save up the magic number of dollars you’ve been told you need. A modest retirement is better than a poor retirement.

Larry MacDonald (this web page has disappeared) has a huge roundup of RRSP articles. If you’re trying to learn more about RRSPs, some of these articles can help.

Million Dollar Journey explains the danger of chasing dividend yields.  Spoiler alert: the danger is loss of capital (dropping stock price) from unsustainable yields.

MoneyNing explains how to blow $10 million in 10 years.


Financial Highway lists 8 degrees that give a poor return on investment.

5 comments:

  1. Thanks for the mention! Have a great weekend!

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  2. Thanks for the mention! Have an enjoyable weekend.

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  3. Thanks for the mention!

    I'm starting to think that maybe Gail Vaz-Oxlade has the best retirement ideas by constantly pushing debt reduction. You rarely see that message from a financial institution.

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  4. Thanks for the mention Michael. I agree with you that rebalancing is hard in practice. When markets are going up, it is always tempting to wait just a bit more to rebalance into bonds. The reverse happens when markets are tanking fast.

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