Top 3 Undervalued Growth Stocks in Canada? $FTS Dividend King with 50+ years of growth $CSU– One of the greatest compounders in TSX history $PRL– Fintech growth at a bargain valuation #TSX #CanadianStocks #Investing #GrowthStocks #StockMarket https://m.youtube.com/watch?v=VmqJu3O0bPo&ra=m read more
I’m building a simple income-focused strategy around $FFord and $SANSantander. The plan: * Buy 100 shares of each * Sell covered calls to collect premium * Collect dividends while holding * If shares get called away, sell cash-secured puts to potentially buy them back * Repeat the process and compound the income * Use the premiums/dividends to help pay down my PLOC The goal isn’t to chase the highest possible premium. I want to own large, established companies that I’m comfortable holding long term while generating additional income from the wheel. My core portfolio stays focused on long-term growth, while F + SAN are my income/wheel positions. I’m new to both of these stocks and from some quick researching and understanding they are safer stocks that have a somewhat decide bull case for the future mixed with business strategy’s that have a competitive edge. Still thinking upon this and if my thoughts decide on it I should be making this happen next week at some time. If anyone has any good information on either of these companies or thoughts upon this strategy please lmk! read more
The $25 Rule: What a Guaranteed $1 of Pension Income Is Really Worth Imagine two retirees. One has a $500,000 investment portfolio. The other receives a guaranteed lifetime pension of $20,000 per year. At first glance, they seem difficult to compare. One owns a pool of investments, while the other receives a monthly cheque for life. Yet a surprisingly simple rule of thumb suggests they may provide roughly the same level of retirement income. It’s known as the $25 Rule. If you’ve spent any time around retirement planning forums, you’ve probably seen it: For every $1 of guaranteed annual pension income you receive, you need roughly $25 less in your investment portfolio. It sounds almost too neat to be true. And in some ways, it is. But the logic behind it is sound enough to make it a genuinely useful planning tool—as long as you understand where it comes from and where its limitations begin. ⸻ Where the Number Comes From The $25 figure isn’t arbitrary. It’s the mathematical inverse of the well-known 4% rule, a retirement withdrawal guideline popularized by financial planner Bill Bengen in the 1990s. The rule suggests that a retiree could historically withdraw about 4% of their portfolio during the first year of retirement, then increase that dollar amount each year with inflation, while having a high probability of their savings lasting for a 30-year retirement. The math is simple: If 4% of a portfolio produces $1 of annual income, then producing $1 requires approximately $25 of investments. $1 ÷ 0.04 = $25 Using that shortcut, a pension paying $20,000 per year is roughly equivalent to having a $500,000 investment portfolio generating sustainable retirement income. This isn’t an actuarial valuation of the pension—it’s simply a convenient way to compare two very different sources of retirement income. ⸻ Why This Shortcut Is So Useful For quick retirement planning, the $25 Rule solves a real problem. Pensions pay guaranteed income for life. Investment portfolios are pools of assets that must be managed and gradually spent. The rule translates both into a common language. It can help you: * See your complete retirement picture. Instead of viewing your pension and investments as unrelated, you can estimate a combined “portfolio equivalent.” * Decide how much investment risk to take. Someone whose essential living expenses are largely covered by guaranteed pension income can often afford to invest the remainder of their portfolio more aggressively because they already have a secure income floor. * Evaluate pension buyout offers. While it shouldn’t replace professional advice, the rule provides a quick reality check on whether a lump-sum offer appears generous or surprisingly low. ⸻ A Quick Example Using the 4% framework: Annual Guaranteed Pension Approximate Portfolio Equivalent $10,000 $250,000 $20,000 $500,000 $30,000 $750,000 $40,000 $1,000,000 Again, these are rough planning estimates, not precise pension valuations. ⸻ Where the Math Starts to Break Down Despite its usefulness, treating every dollar of pension income as exactly equal to $25 of investments overlooks several important realities. The 4% Rule Isn’t a Law of Nature The 4% rule is based on historical market data—not a guarantee of future outcomes. Many researchers today suggest sustainable withdrawal rates may range anywhere from 3% to 5%, depending on retirement length, investment fees, future returns and personal circumstances. That changes the math considerably. * At 3%, $1 of annual income requires about $33 of investments. * At 3.5%, it requires about $29. * At 5%, it requires only $20. The “right” multiplier depends on your assumptions. Guaranteed Income Is Different From Market Income A pension continues paying whether markets are booming or crashing. A portfolio doesn’t. Retirees relying on investments face sequence-of-returns risk, where poor market performance early in retirement can permanently reduce how much income their portfolio can safely provide. Because of this, many financial planners argue that a dollar of guaranteed lifetime income is actually worth more than an equivalent dollar of portfolio withdrawals. Inflation Matters The traditional 4% rule assumes withdrawals increase with inflation every year. Many private pensions do not. If your pension payments remain fixed for decades, inflation steadily reduces their purchasing power. By contrast, government pensions like CPP/QPP and Old Age Security include inflation adjustments, making them more valuable than many private pensions over long retirements. Taxes Matter Pension income, RRSP/RRIF withdrawals, TFSA withdrawals and taxable investment income are often taxed differently. Two retirees receiving the same pre-tax income may end up with different amounts left to spend. Survivor Benefits Matter Some pensions stop when you die. Others continue partially—or fully—to a surviving spouse. Investment portfolios, meanwhile, generally become part of your estate. Those differences can significantly affect the true economic value of a pension. ⸻ The Behavioural Advantage One benefit that’s difficult to measure is peace of mind. Retirees whose essential expenses are covered by guaranteed income often find it much easier to stay invested during bear markets. Instead of worrying about selling investments after a large market decline, they can allow their portfolios time to recover. That emotional stability can improve long-term investing outcomes just as much as mathematics. ⸻ How to Use the Rule Wisely The $25 Rule works best as a conversation starter—not the final answer. A few practical guidelines: 1. Use it as a planning shortcut. It’s excellent for estimating whether your retirement picture is generally on track. 2. Adjust the multiplier when appropriate. If you’re retiring very early or prefer a more conservative withdrawal rate, using a multiplier closer to 28–33 may be more appropriate. 3. Remember that guaranteed income is unique. A pension isn’t just another investment—it’s insurance against living longer than expected and against poor market returns. 4. Seek professional advice for major decisions. Pension buyouts and retirement timing deserve a detailed analysis using actuarial assumptions, taxes, inflation and your personal circumstances. ⸻ The Bottom Line The idea that every $1 of guaranteed annual pension income replaces roughly $25 of investment savings is one of the most useful mental shortcuts in retirement planning. It provides a simple way to compare lifetime income with investment portfolios and helps put pensions into terms most investors immediately understand. Just remember that it’s a translation tool, not a valuation tool. The true value of a pension depends on inflation protection, taxes, survivor benefits, longevity and market conditions. Used appropriately, though, the $25 Rule remains one of the quickest and most practical ways to understand the real contribution guaranteed income makes to your retirement security. Think Saskatchewan Pension Plan, available to all Canadians or partial annuitization of your RRSPs as a sleep-well-at-night fund, no market risk. Let CPP act as the bond which is indexed for inflation and your TFSA’s as inflationary protection. If you want to stay in your home, apply for the provincial deferral of property tax programs, where the province pays your property taxes. ** I am heavily invested in Saskatchewan Pension Plan, interesting fact, I now get a pension tax credit for buying it at 55. Second interesting fact, I won’t touch it until 71, as it converts to an annuity the whole amount is converted, there is no RRIF mandatory tax, I just pay income taxes on annual basis on what it pays me.read more
For the 3 of you who were interested in my junk bonds experience. Bought a bunch of Telesat bonds at $330 per $1,000 tranches a little under 2 years ago. 6.5% coupons expiring October 2027. I got paid all coupons so $65 x 2 (I'll round up to 2 years holding time) for $130 And I sold the bonds for $720. So got $850 in the end on a $330 price paid for each tranche for a ~158% total return. I decided to sell as the risk/reward isn't up to my taste. There is a major litigation going on between bondsholder and Telesat ($TSAT) currently. If Telesat was to get bondsholders 100% of principle, they would have said so and not let that go into court. So I don't expect getting the full $1,000. This is also the latest tranche to expire. Bonds price has stopped to increase in last months, and transaction was sell-only on $IBKR... It's very possible I'm leaving money on the table but am ok with 158% return and it got to be a sizable position in my portfolio. First post: https://link.blossomsocial.com/7uYa/tl0d7zpe N.B. I don't hold any other junk bonds nor did I look into it read more
See where yields on the US 10Y notes are: 4.5%. What do you think cooperates are paying? Way more than that. For a stock market that’s been breaking all time highs for over a year, and with a potentially new technology like AI sucking most of the liquidity, I think caution is very much warranted. There’s no real fear but there’s certainly capital competition now and with the bond market telling the FED we already hiked for you, that’s the real caution cue. Major growth stocks and high cash burn companies are being sold off because soon, there’ll find it difficult to see liquidity.
Bond Market Moves before Stocks The reaction to FOMC interest rate decision saw yields on longer term bonds edge higher as opposed to the short end. This is a bear steepening and caution is needed. Yes! bond market already hiked for the FED. Yields on the 2Y treasury sit at 4.3% and the FED’s target range is 3.5 - 3.75. If this correlation continues to hold as it has historicall, it means the FED has to hike in a few months time. More bearishness for stocks. 3 members dissented and opted to have a hike. This number will keep increasing. YTD inflation is what 4.2%. While the monthly data was encouraging with a slight cool, there’s still no clear downward trend. The Fed will hike interest rates in a few months unless monthly readings trend further downward. Stocks especially ones burning a lot of cash, sold off aggressively and this will only continue because there’s we are soon going to see liquidity issues read more
Japan’s bond yields are rising like a rocket and I hope everyone is paying attention. For decades investors borrowed cheap money in Japan and invested it in higher return assets around the world. With Japan’s bond market worth roughly $11 trillion, this is a macro trend investors shouldn’t ignore. $XEQT$GOVT$BND$BWX
I recently had the opportunity to interview Yung Lim, CEO at FolioBeyond, about the FIXP ETF and the unique strategy behind the fund. During our conversation, we discuss: • What makes FIXP different from traditional bond ETFs • How the fund seeks to generate income • Where it may fit within an income-focused portfolio • Important risks and considerations investors should know Whether you're retired, building passive income, or simply looking to diversify your portfolio, I think you'll find this discussion informative. Watch here: FIXP's Multi-Sector Rotation Strategy Explained | Income ETF Deep Dive https://youtu.be/5aRSmY60_Gg read more
1. Continuous Bitcoin generation Instead of waiting for the price to rise, mining earns new Bitcoin every day. This can create a steady stream of BTC as long as your operation remains profitable. 2. Potentially lower effective acquisition cost If you have access to very low-cost electricity and efficient mining equipment, the cost to mine one Bitcoin can be lower than buying it at the market price, increasing your upside if Bitcoin appreciates. 3. Leverage during bull markets When Bitcoin’s price rises significantly while your operating costs stay relatively stable, mining profits can increase rapidly because the value of the Bitcoin you mine increases. 4. Revenue beyond Bitcoin appreciation A Bitcoin holder only benefits if the price increases. A miner can earn Bitcoin through block rewards and transaction fees, regardless of whether they purchased Bitcoin directly. 5. Scalable business opportunity Mining can be expanded by adding more machines or improving efficiency. Successful operations can grow into businesses that generate ongoing cash flow, rather than relying solely on asset appreciation.read more
