Category : Investing

How to Best Guestimate Your Return On Investment

You can’t make your badass financial plan without first having some idea of what kinds of long-term returns you will get on your investments. So, for the stock & bond portion of your investment portfolio, that’s what I’m going to give you in this article. Why This is Important (BTW, feel free to skip this section if you don’t really care about the rationale – it’s not critical and a little heavy). The fact of the matter is that the […]

Invest Like the Best: The Zen of Rebalancing

What is Rebalancing? Once you decide on a portfolio target allocation (e.g., the Canadian Couch Potato “Balanced” allocation of 40% ZAG Bond Index, 20% VCN Canadian Index, and 40% XAW World Index – see more here) and purchase your securities, you’ll notice over time that your chosen allocation will slowly drift away from these starting points.  For example, let’s say you initially chose to invest a total of $100,000 in the above allocation mix, resulting in $40,000 of ZAG, $20,000 […]

Invest Like the Best: The Badass ETF Portfolio for Canadian MDs

Here’s where the rubber meets the road.  It’s time to stop overpaying for underperformance! In this article, I’m going to show you the Exchange Traded Funds (ETFs) that I use in my investment portfolio and explain why I chose them. First, let’s talk about the criteria used to create the best stock & bond (in our case, owned via ETFs) investment portfolio: Low Cost: The fees you pay for an investment are the single biggest determinant of how well that […]

Invest Like the Best: Just Give Up Now!

I mean it.  Just give up trying to beat the market.  If you’re a Canadian MD (or virtually anybody else), it’s just not going to happen.  And what’s more is that persistence in trying to do so is going to cost you both time and money. Here are the 2 things I want you to understand about trying to beat the market: Don’t even try.  Outperforming the market IS possible – JUST NOT BY US.  Investing professionals who devote every waking […]

Invest Like the Best: Badass Asset Allocation

What’s This All About? Asset allocation is the determination of the amount of money that you’re going to devote to the different asset classes (i.e., equities, fixed-income, and cash & equivalents).  Variations in this tend to be for personal reasons. Determining the right allocation for you involves taking into account your goals, risk tolerance, and investment horizon. While you can make allocation decisions between different asset classes, you can also further determine allocations within the various asset classes themselves.  For […]

Invest Like the Best: Indexing the Stock Market

On the road to becoming a financial badass, one major stop is the stock market.  In fact, no reasonable financial plan for a Canadian MD should exclude it.  Equities can be a fantastic vehicle for growing your nest egg, but only if the investments are made properly. The first rule of The Canadian MD’s Guide to Becoming a Financial Badass is: “Don’t speculate.  Invest.”  – MD Wealth So what does this actually mean? I think one of the best ways […]

Diversify to Crash-Proof Your Portfolio

What is diversification? For our purposes, diversification means lowering the overall risk in our investment portfolios by owning a wide variety of assets. Here’s the rationale for this: significantly different assets will likely respond differently to the same event (i.e., they aren’t highly correlated). This means that some assets will change in value differently compared to others (or even change in the opposite direction) in response to a market event.  Owning some assets of each kind mitigates some of the […]

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