Comments on: Financial Cliché II: The proportion of stocks in your portfolio should equal 100 minus your age http://www.thefinancialblogger.com/72/ This is where your finance takes place Mon, 01 Dec 2008 20:43:32 +0000 http://wordpress.org/?v=abc By: ThickenMyWallet http://www.thefinancialblogger.com/72/#comment-155 ThickenMyWallet Fri, 15 Jun 2007 14:49:52 +0000 http://www.thefinancialblogger.com/72/#comment-155 Thanks FB. You don't have to convince me of anything! As long as you are comfortable with the strategy you are pursuing and its profitable and ethical than all the power to you. After all, isn't "to each their own" a French saying! Have a good weekend. Thanks FB. You don’t have to convince me of anything! As long as you are comfortable with the strategy you are pursuing and its profitable and ethical than all the power to you.

After all, isn’t “to each their own” a French saying! Have a good weekend.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/72/#comment-154 The Financial Blogger Fri, 15 Jun 2007 09:22:37 +0000 http://www.thefinancialblogger.com/72/#comment-154 Hi TMW, I will definitely look into more tax implication and probably more post on leverage so I can convince you and CC (that will be quite a challenge!) that leveraging should be part of any financial plan (at a different degree). Cheers, FB. Hi TMW,
I will definitely look into more tax implication and probably more post on leverage so I can convince you and CC (that will be quite a challenge!) that leveraging should be part of any financial plan (at a different degree).
Cheers,
FB.

]]> By: ThickenMyWallet http://www.thefinancialblogger.com/72/#comment-152 ThickenMyWallet Fri, 15 Jun 2007 03:03:09 +0000 http://www.thefinancialblogger.com/72/#comment-152 I wandered onto this blog recently. Keep up the good work. I would suggest that you study the tax implications of your post though- if you are 55 and retired, I suspect your income would be quite low and any interest income from fixed income instruments is not going to push you into a higher tax bracket. However, if you are 55 and working (on the assumption that you have a lot of seniority), you may be in a high tax bracket and fixed income should be in tax sheltered accounts. I am like CC- I do not believe leverage is a catch all solution for all investors. The average investor, unfortunately, preforms well below the TSX/S&P indexes and adocvating leveraging for "everyone" making over $50K is a dangerous strategy for those who do not have a track record of investing wisely. To each their own, one supposes. Keep up the good work. I wandered onto this blog recently. Keep up the good work. I would suggest that you study the tax implications of your post though- if you are 55 and retired, I suspect your income would be quite low and any interest income from fixed income instruments is not going to push you into a higher tax bracket. However, if you are 55 and working (on the assumption that you have a lot of seniority), you may be in a high tax bracket and fixed income should be in tax sheltered accounts.

I am like CC- I do not believe leverage is a catch all solution for all investors. The average investor, unfortunately, preforms well below the TSX/S&P indexes and adocvating leveraging for “everyone” making over $50K is a dangerous strategy for those who do not have a track record of investing wisely.

To each their own, one supposes. Keep up the good work.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/72/#comment-146 The Financial Blogger Wed, 13 Jun 2007 22:23:38 +0000 http://www.thefinancialblogger.com/72/#comment-146 CC: I must admit I had a good laugh thinking about your revolver example :smile:. Most people do almost the same thing with their investment, following the market like sheeps. I was refering to your most recent post about this guy that has 22% in emergent market. I don't know your whole personal investment strategy yet (didn't go through all your blog either) so nothing personal here. I've seen many financial plans and they all show what can happen if things turn bad. Sure you can lose all your money and still owe a considerable amount to the bank. This last sentence leads to my analogy. My point is, the worst of life can happen at any time, anywhere. But considering the real risk of dying in a car accident, or leveraging over 10,15 years, we find out that they both are minimal. I do think that everybody that has a high marginal tax rate (starting around 50K) should leverage. Some with smaller amount like 10K, some others with 250K depending on your whole financial situation. They should not leverage because it is a risky activity, but because it will surely create wealth overtime. Cheers, FB. CC: I must admit I had a good laugh thinking about your revolver example :smile:. Most people do almost the same thing with their investment, following the market like sheeps.

I was refering to your most recent post about this guy that has 22% in emergent market. I don’t know your whole personal investment strategy yet (didn’t go through all your blog either) so nothing personal here.

I’ve seen many financial plans and they all show what can happen if things turn bad. Sure you can lose all your money and still owe a considerable amount to the bank.

This last sentence leads to my analogy. My point is, the worst of life can happen at any time, anywhere. But considering the real risk of dying in a car accident, or leveraging over 10,15 years, we find out that they both are minimal.

I do think that everybody that has a high marginal tax rate (starting around 50K) should leverage. Some with smaller amount like 10K, some others with 250K depending on your whole financial situation. They should not leverage because it is a risky activity, but because it will surely create wealth overtime.

Cheers,
FB.

]]> By: Canadian Capitalist http://www.thefinancialblogger.com/72/#comment-145 Canadian Capitalist Wed, 13 Jun 2007 20:57:40 +0000 http://www.thefinancialblogger.com/72/#comment-145 FB: I am not sure what you are hinting at when you say someone invested in emerging markets. I've never suggested anyone should be overexposed to emerging market equities and I personally don't have any exposure. The logic of leveraging is not in doubt. The most important question is are investors able to handle the extra risk compared to investing your own money. Why is that people who sing the praises of leveraging never point out the downside? In that context, I find it interesting that you say investors should take appropriate risks. BTW, what's your point with the analogy between driving a car and investing? If you are saying both are risky and everyone drives a car, so everyone should take the risks of leverage, it is a silly argument. Putting one bullet in a revolver, pointing it to the head and pulling the trigger is a risky activity too. So, why don't all leveraged investors try that once in a while? After all, it's all taking the same risks, right? FB: I am not sure what you are hinting at when you say someone invested in emerging markets. I’ve never suggested anyone should be overexposed to emerging market equities and I personally don’t have any exposure.

The logic of leveraging is not in doubt. The most important question is are investors able to handle the extra risk compared to investing your own money. Why is that people who sing the praises of leveraging never point out the downside? In that context, I find it interesting that you say investors should take appropriate risks.

BTW, what’s your point with the analogy between driving a car and investing? If you are saying both are risky and everyone drives a car, so everyone should take the risks of leverage, it is a silly argument. Putting one bullet in a revolver, pointing it to the head and pulling the trigger is a risky activity too. So, why don’t all leveraged investors try that once in a while? After all, it’s all taking the same risks, right?

]]> By: FourPillars http://www.thefinancialblogger.com/72/#comment-144 FourPillars Wed, 13 Jun 2007 19:24:19 +0000 http://www.thefinancialblogger.com/72/#comment-144 I'm not sure if you can compare the risks involved with doing a essential activity like driving to work with the risks in leveraged investments which is a totally optional activity. I’m not sure if you can compare the risks involved with doing a essential activity like driving to work with the risks in leveraged investments which is a totally optional activity.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/72/#comment-143 The Financial Blogger Wed, 13 Jun 2007 19:17:54 +0000 http://www.thefinancialblogger.com/72/#comment-143 CC : What I am saying is that there is a risk in investing money on the market, especially if you are investing everything in emergent market for example (remind you of anyone?). However, I think that people overestimate the added risk by leveraging as over the long run, history has proven positive return over time on a well balanced portfolio. As I already stated, there is a risk of dying in a car accident but we are all still driving work everyday. FP : At least I learnt something ;-) I think that most “rule of thumb” should not apply in personal finance. As the term says, it is personal :;-) Cheers, FB. CC : What I am saying is that there is a risk in investing money on the market, especially if you are investing everything in emergent market for example (remind you of anyone?). However, I think that people overestimate the added risk by leveraging as over the long run, history has proven positive return over time on a well balanced portfolio. As I already stated, there is a risk of dying in a car accident but we are all still driving work everyday.

FP : At least I learnt something ;-)
I think that most “rule of thumb” should not apply in personal finance. As the term says, it is personal :;-)

Cheers,
FB.

]]> By: FourPillars http://www.thefinancialblogger.com/72/#comment-140 FourPillars Wed, 13 Jun 2007 12:51:51 +0000 http://www.thefinancialblogger.com/72/#comment-140 Nothing like learning from experience eh?? lol. This is a good post. Another cliche or 'rule of thumb' which I don't like and you can write about is "contribute to your rrsp and put the refund in the mortgage". While this isn't bad advice for most people it certainly doesn't fit everyone's situation. Some people should put all their money into the rrsp (incl refund), some should just pay off debt, some should invest outside mortgage etc or more likely some combination - but each person has to look at their own situation. Mike Nothing like learning from experience eh?? lol.

This is a good post. Another cliche or ‘rule of thumb’ which I don’t like and you can write about is “contribute to your rrsp and put the refund in the mortgage”. While this isn’t bad advice for most people it certainly doesn’t fit everyone’s situation. Some people should put all their money into the rrsp (incl refund), some should just pay off debt, some should invest outside mortgage etc or more likely some combination - but each person has to look at their own situation.

Mike

]]> By: Canadian Capitalist http://www.thefinancialblogger.com/72/#comment-139 Canadian Capitalist Wed, 13 Jun 2007 12:50:22 +0000 http://www.thefinancialblogger.com/72/#comment-139 I find it ironic that you are suggesting that investors should take appropriate risks (correctly IMO) just after saying the increased risk in leveraged equity investing is nothing to worry about. I find it ironic that you are suggesting that investors should take appropriate risks (correctly IMO) just after saying the increased risk in leveraged equity investing is nothing to worry about.

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