Posts in Great Reads
Tender Money Conversations

You may have found, like me, that your ability and desire to read anything except for the back of the cereal box has diminished significantly. That’s okay - the written word will still be ready for you when you’re ready for it. 

I happened to be ready for it this month, and found some real gems I’d like to share, including:

If that’s not enough, there’s a whole list of other reads to dig into (Nine! I counted!), including:

Families, Money and the Tincture of Tenderness

From Dr. Moira Somers

Time spent with family while we practice physical distancing presents us with the opportunity to have tender money conversations.

“The end result of this financial stress is often an increase in conflict. With everyone feeling a little more ragged and tense than usual, it is all too easy to let loose with harsh pronouncements and critical commentaries. Researchers have been telling us for some time that marital conflicts about money have the potential to be especially damaging. Financial disagreements are associated with nastier fighting techniques and poorer relational outcomes. That’s why the tincture of tenderness is essential today.”

Read the full article here.

When You Have No Idea What Happens Next

From Morgan Housel

“Forecasts rely on knowing when something will occur. Expectations are an acknowledgment of what’s likely to occur without professing insight into when it will happen.”

Read the full article here.

Caregiving Beyond the Crisis

From Tammy Findlay

“Hopefully one of the lessons we will learn from this pandemic is that we should be using our public resources to care for each other all of the time, and not just when there is a crisis.”

Read the full article here.

You can read this month's entire list below:

In Uncertain Times, Humility is Essential | Christina Benz

“If there are many uncertain variables swirling around, your job is to ensure that your plan can still work even if those variables don't play out as you're expecting them to.”

Tired of still life in quarantine? Visit the world from your sofa | Albina Retyunskikh

“If, by this point, daily visits to Puerto Backyarda and New Kitchen are feeling repetitive, take comfort that there are ways to escape, at least virtually, with famous tourist sites offering online visits—almost all of them, free.”

COUNTERPOINT: Coronavirus and your social life: It’s not the same | Cleo Levin

“Beyond whatever technical issues there are, fundamentally, these activities aren’t satisfying because they’re based in a denial of the present moment.”

The constant shifts of the coronavirus pandemic may be making journalists more comfortable expressing uncertainty | Kevin Lerner

“Journalists pursue facts and their readers rely on accuracy, which are smaller, related concepts that are easier to measure.”

COVID-19 and compensation lessons from the Barrie Tornado | John Stapleton

“I would have given anything to have been able to change the property compensation model we were handed by the government.  Poor people lose little property but do lose access to programs. Rich people lose property and don’t qualify for programs that disallow wealth. Those two simple facts mean that compensation programs must always adjust their designs to meet need in order to work well.”

This version of Warren Buffett | Josh Brown

“Berkshire Hathaway as a quasi-religious institution for capitalists just fading away like this…it’s so anti-climactic. Unsettling.”

Comparing provincial economic responses to COVID-19 | Marc Lee and Arman Hamidian

“This post looks at provincial/territorial economic responses on top of the federal supports (although the response in the territories has been fairly limited). What follows is not intended to be a comprehensive inventory of all provincial measures, but it highlights the major initiatives and key differences across provinces.”

Another pandemic woe: Zoom Fatigue | Scott Rosenberg

“Our thought bubble: Not everything needs to be a Zoom meeting. Phone calls still work fine too.

"The bottom line: Once you tire of certain things, it means that you are tired of life.

"Samuel Johnson famously said that about London. No one has ever said it about videoconferencing.”

When Something Is Taken Away | Alex Riley

“Investing doesn’t need to be overly complex in order to meet your identified financial planning goals. In fact, your investments should be boring; it is your life that should be interesting.”

Great ReadsSandi Martin
April's Great Reads

As I write this, we’re in the middle of what feels an awful lot like a world-changing event. By the time you see these COVID-19 top reads, we might be already experiencing some kind of recovery, thanks to our doctors and nurses working the front lines, our communities banding together (at a safe distance) to pick up groceries and otherwise care for each other, and hopefully our businesses and governments doing the right thing not just for the bottom line, but for everyone. I think especially of our gig and contract workers, people experiencing homelessness, and those in crowded shelters and inadequate reserve housing. Mr. Rogers told scared children to “look for the helpers,” but he told us adults who grew up with him to be the helpers. 

Do what you can with what you have to be the helper.

All of this to say that this month’s reading list is heavy on investment and COVID-19 writing, and a little light on everything else. If you feel overwhelmed by all of this [gestures at everything], please take this as a permission slip to stop reading right now and focus on whatever helps you get through this, which might include a list of silly things to do at home or virtual therapy to name two. 

If you’re up for it, my top three picks for this month's investment and COVID-19 top reads include:

  1. A compassionate reminder that it’s okay to not enjoy this kind of market turmoil

  2. A reminder that preparing for COVID-19 (and how to do it) is an act of kindness and not a weird survivalist thing

  3. Reflections on what the Teck decision could mean for a government focused on a just transition to the green economy.

If all that wasn’t enough for you, we have:

Happy reading!

This part, it’s not so fun

From James Osborne

“It’s okay to admit that this part is not fun. No one wants to see stocks fall this way (even us young folks who will ultimately benefit from being able to buy more and more stocks at last year’s prices). Seeing huge red numbers inflicts panic in our hearts, and because we have terrible brains for investing, brains that were designed to run from every threat on the savanna, we can only assume that TERRIBLE DANGER LURKS AHEAD.”

Read the full article here.

Preparing for the coronavirus to strike the US

From Zeynep Tufekci

“Preparing for the almost inevitable global spread of this virus, now dubbed COVID-19, is one of the most pro-social, altruistic things you can do in response to potential disruptions of this kind.”

Read the full article here.

Teck decision opens the door to renewed conversation about transition

From Hadrian Morton’s-Kirkwood

“The case for government management of the transition to a cleaner economy is especially pertinent in the social context. When private investors pull out of fossil fuel projects it may be a win for the land and the climate, but the burden often falls disproportionately on fossil fuel workers, their families and their communities.

“The federal and provincial governments have key roles to play in:

establishing clear timelines and plans for the phase-out of fossil fuel production (as they did with coal power), instead of leaving it to the whims of the market; supporting displaced workers with social security, retraining and career support; and, investing in new industries that create good, green jobs in the communities where they are needed most.

“It is becoming increasingly clear that the transition to a lower-carbon economy is coming, regardless of the protestations of regressive Canadian politicians. As the CCPA has long argued, a just transition to a cleaner economy is an opportunity to minimize the harm and  maximize the benefits to workers of the shift away from fossil fuels.”

Read the full article here.

You can read this month's entire list below:

Tricks (Witting or Not) that Investment Advisors Play | Meg Bartelt

“To a meaningful extent, the investing puzzle is “solved:” Own a broadly diversified portfolio at a low cost, and don’t touch it.

“So, if someone is creating a portfolio for you that you cannot wrap your head around, first, of course, ask questions. And if you still can’t understand it, then that’s a problem.”

Picking Bad Stocks | XKCD

“I was born for this!”

It's Too Late | Blaire DuQuesnay

“Sometimes you get punched in the gut. Other times you get punched in the gut every day for months on end. Running away when the market rolls over rarely leads to a positive outcome. I have spoken to countless investors sitting on the sidelines, nervous about the market making all-time highs, not wanting to buy in before the next crash. Do you think they are excited to buy stocks now? Will they be ready if the market drops another 20%? Not likely.”

An Open Letter to “Angry Settlers” | âpihtawikosisân

“We have been experiencing a steady erosion of labour rights, rights that were hard fought for, and hard won. At the core of that steady erosion is the manipulation of public opinion, which invariably paints labour actions as “threatening safety.” How? By withdrawing labour, health workers “threaten” public health, striking teachers “threaten” the ability of parents to work and put students at academic risk, picketing construction workers “threaten” the economy, etc etc.

“More and more we have seen governments tabling back-to-work legislation, and criminalizing labour actions, all in the name of “public safety.” The particular bargaining unit in any given situation is demonized: they are greedy, lazy, paradoxically “essential” while also being completely replaceable and unimportant.

“I point all this out to show you that any segment of the population can be rendered “the enemy,” even those who are supposedly “protected” by unions. Those without robust labour protections are even more vulnerable to the rhetoric of “public safety.’”

Your Portfolio Was Built for This | Ashby Daniels

“Here’s the key: If you have appropriately allocated your portfolio to account for these all-too-common-and-expected market corrections, then the answer to the “What should you do?” question is to keep going to work, or playing golf, or reading books, or whatever. Anything but turn on the TV, lest you risk making a decision you will most likely regret.”

Great ReadsSandi Martin
March’s Top Three Reads

As we wait for winter to loosen her icy grip on our hearts and sidewalks, let’s take a moment to be grateful for the extraordinary amount of excellent information available to read...indoors. (Except if you live on the West Coast and have been enjoying spring since January and are too busy cavorting under cherry blossoms and what-not to waste time reading.)

While the sheer volume of financial writing can be overwhelming (which is why I curate this list for you each month), there is an increasingly diverse set of perspectives available to learn from. There is also a correspondingly diverse set of topics...which benefits everyone! 

This month, the three articles you can’t miss include some fascinating research from our friends at The Decision Lab on the value of thinking about why before we think about how. Superb information from Owen Winkelmolen about increasing government benefits with strategic RRSP contributions. And finally, a secret from Meg Bartelt, one of my new favourite bloggers: you, the Client, are the Expert in your own life, and the Hero of your own journey. 

If you get through those and are still cowering away from winter behind your windows, take a deep breath and check out:

The Decision Lab

From The Decision Lab

"In particular, thinking about why we might do something instead of how we might do it causes us to be more rational. Taking that perspective lets us feel more in control of our finances, budget better, save more—and ultimately achieve more of our financial dreams."

Read the full article here.

How RRSP Contributions Affect Your Government Benefits

From Owen Winkelmolen

Owen is one of the only people I know paying close attention to the effective tax rate of families. If you haven’t started paying attention to him yet, you should.

Read the full article here. 

Confessions of a Comprehensive Financial Planner

From Meg Bartelt

“All us humans already know pretty much everything we need to. We know the essential elements of our ideal life. We know almost everything we need to do to live that life. And we know what the obstacles are and how to overcome them.

We just haven’t been given the space, time, and empathy to figure it out before. Most importantly? We have the motivation to do all those things because we can tap into that emotion around that ideal life…and that motivation is something I could never ever give someone else as a financial planner.”

Read the full article here.

You can read this month's entire list below:

The sad state of Intuit’s Mint | Rob Pegoraro

The value of Mint is the tremendous amount of behaviour data its harvesting from you for free. What incentive do the owners have for improving the user experience?

Volatility & Risk Part 2: Sequence of Returns Risk | Loonie Doctor

“When cash is being added or taken out of an account, then it does change the outcome. Money being added isn’t exposed to the returns that predate it and money that is taken out does not get the returns that follow. Hence, the sequence of returns before and after cashflows can make a difference in the outcome.”

How mindfulness privatised a social problem| Hettie O’Brian

“Purser argues that mindfulness has become the perfect coping mechanism for neoliberal capitalism: it privatises stress and encourages people to locate the root of mental ailments in their own work ethic. As a psychological strategy it promotes a particular form of revolution, one that takes place within the heads of individuals fixated on self-transformation, rather than as a struggle to overcome collective suffering.”

Not-so-great expectations: The curse of high expected returns | Daniel P. Egan

“The connection between expected returns and financial planning means that clients with more-optimistic advisors are likely to save less. Not having to set aside as much sounds great—until the plan fails because the high returns never materialize.”

Some Bull Market Reminders | Ben Carlson

“The market cycle looks something like this: markets go up for a long time, which eventually leads people to become complacent and take too much risk, which eventually leads them to over-correct when the inevitable downturn comes, which tends to go further than fundamentals warrant, which leads people to become too conservative and take too little risk, which eventually leads to the inevitable recovery when things get less bad and ultimately we start the cycle over again with another recovery.”

You’re Not Listening. Here’s Why. | Kate Murphy

“But what is love if not a willingness to listen to and be a part of another person’s evolving story? A lack of listening is a primary contributor to feelings of loneliness.”

Do you have too many shares in one company? | Jason Heath

“It may seem more comfortable to invest in something you know—like shares of your employer—than other investment options. But remember, not only the success of your shares is tied to the performance of your employer, but even your bonus or your job itself could be at risk if the company goes through tough times. If you did not work at that company, would you have bought those shares in the first place?”

Great ReadsSandi Martin
February’s Top Three Reads

There’s a common thread to my top reads this month: disability insurance, moving in together, and annuities are all topics that too many people make too many assumptions about, including professionals who ought to know better. 

If you’ve made your way through those three eye-openers and want more, I’ve got you covered. Read about acting as your portfolio’s CEO, how Facebook and Google are privacy-washing their services, practical tips to overcome the transition from diligent saver to retirement spender, an overlooked truth about financial freedom, a brief history of social assistance in Canada, and how mental rigidity is the enemy of long-term investing success.

Disability Insurance...Because the Odds are Against You

From Russell Sawatsky

Russ launched his advice only planning practice in September 2019, and has been steadily developing a personal finance encyclopedia on his Money Architect site. This one on disability insurance is a very good place to start...but keep reading, because the whole library is great.

Read the full article here. 

Heads Up on "Shacking" Up

From Marly Peikes

"There may be a myriad of reasons for living common law depending on circumstances, but one myth that needs to be unraveled is the notion that it is simpler not to get married. Common law relationships have a unique set of considerations."

Read the full article here.

Evaluate Annuities as a Component of Your Retirement Income Portfolio

From Dirk Cotton

“Nominal (not inflation-adjusted) annuities can still play an important role. Our goal isn't to ensure that inflation does not ravage our annuity income but to ensure that inflation doesn't ravage our retirement income. As Milevsky's comment suggests, the two need not necessarily be the same.” 

(Note that there’s some US-only information in this article that Canadian readers need to be mindful of)

Read the full article here.

You can read this month's entire list below:

Forecasting the Market is Almost Impossible, So Here's What Investors Should Do Instead | Tom Bradley

"I came up with one recommendation that’s guaranteed to produce better investment outcomes — hire yourself as the CEO of your portfolio. That’s right. The buck stops with you, so start playing the role."

At CES, Apple, Facebook and Amazon are preaching privacy. Don’t believe the hype | Geoffrey A. Fowler

“Lots of the companies that have gotten wealthy from selling us data-collecting devices — or from collecting our data — have learned to talk the talk on privacy. But they’re very often defining privacy in ways that serve their own interests first.”

Opening the Spigot | Jonathan Clements

We’ve found that many of our retiree clients have a hard time making the transition from “save diligently” to “spend happily”. Here are five very good (though US-centric) suggestions if you’re experiencing something similar.

What Nobody Told You About Financial Freedom | Safal Niveshak

“The fact is that the more we think that a lot of money is what we need to live happily, and the more we associate money with most things in life, the more we convince ourselves that we are too poor to buy our freedom.”

Bring back cost sharing! End 26 years of social assistance decline | John Stapleton

A brief but thorough history of social assistance in Canada from 1935 to today, with a glimmer of hope in the horizon.

A Common Mistake Many Investors Make: Mental Rigidity | Peter Lazaroff

“It’s one thing to agree to a long-term investment plan at the onset of a relationship with a financial advisor, but the actual experience of riding out different market movements is harder in practice than in theory.”

Great ReadsSandi Martin
January’s Top Three Reads

If you - like me - recently welcomed a dog into your home and are now suddenly A Person Who Has Time for Podcasts, our reading list this month has a beautiful series about Fred Rogers that’s perfect to start the new decade with. If you like the first episode, check out this one on Helping the Helpers too.  

When you’re back home and ready to read with your eyes instead of your ears, this month’s list includes a masterpiece on the tradeoffs we make in life, ideas for ethical consumption, including a reminder that with great (purchasing) power comes great responsibility (thanks Spidey), and a moving and practical reflection on inheritances from our friend Jason Heath, who recently lost his mother much too soon. 

Other entries to this month’s reading list include how to give an inheritance today while you’re still around to enjoy the act of giving, how to read in a way that opens you up to new ways of thinking (instead of reinforcing your existing mindset), an anecdote from Jason Zweig’s overconfident youth that, uh, left us feeling a bit seen, and interesting research out of the University of California on the power of direct cash transfers in alleviating poverty. 

Happy reading! 

Tradeoffs: The Currency of Decision Making

From Shane Parrish

“If you feel like you’re always behind on some area of your life, it’s probably a sign to reconsider tradeoffs. If you feel like you’re always running in place without making any serious progress on anything you care about, you’re probably making the wrong tradeoffs. We often end up allocating our time, and other scarce resources like money, by default, not in the way that gets us what we want.”

Read the full article here.

Ethical Consumption: How to Pollute the Planet and Exploit Labor Slightly Less

From Piggy

“The plain and simple fact of the matter is that the most ethical form of consumption is sparing, rare. When you make fewer decisions to buy things, you can be more intentional about those decisions, more deliberate in how and what you buy....

“Ethical consumption is generally a goal for the privileged among us. And while we should all do what we can when it comes to preserving the environment and shutting down exploitative labor practices, the key phrase there is what we can. Some of us can do more than others.”

Read the full article here. 

Planning for an inheritance

From Jason Heath

“An inheritance means you have lost a loved one. But it should not mean the difference between being able to retire or not.”

Read the full article here.

You can read this month's entire list below:

[Podcast] Finding Fred Episode 1: Genius of Empathy |Carvell Wallace

“What made Fred Rogers, a sweet kid from Pennsylvania who played with puppets and spoke to his fish, the most important children’s performer of all time. And why are turning to him now, in 2019 when the world feels dark, for a kind of clarity that we can’t seem to find elsewhere.

The answer turns out to be, like Fred preferred, simple and profound.”

Transferring Wealth During Your Lifetime | Steven Frye

On gifting cash or assets during one’s lifetime as an alternative method of distributing your wealth and possibly avoid taxes at the time of death.

How to Read: Lots of Inputs and a Strong Filter | Morgan Housel

“If you only pick up books you know with certainty you’re going to like you’ll confine yourself to reading the same authors on the same topics. It gives fresh oxygen to confirmation bias and limits your ability to connect the dots between different fields and different cultures.”

Overconfidence: An Autobiography | Jason Zweig

“I try not to be sure of much, but I am sure of this: The only thing more ridiculous than a know-it-all is a know-it-all who doesn’t know how ridiculous he is.”

New Study Finds Cash Transfers To Poor Families Lift Up Their Neighbors Too | Nurith Aizenman

“A wealth of research suggests that when families are given the power to decide how to spend it, they manage the money in ways that improve their overall well-being.”

Great ReadsSandi Martin