Investment Club Meeting on March 19, 2024 (Webinar)

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Ellen's Investment Club (Toronto Central Investment Share Club)

Guest Speaker: Ed Rempel, CPA, CMA, CFP

Tuesday, March 19, 2024, 7:00 – 9:00 P.M.
By videoconference

1. Member introduction

2. Approve Agenda

3. Our guest speaker is Ed Rempel, CPA, CMA, CFP, 

He is a financial blogger, fee-for-service financial planner and tax accountant. He’s not an investment dealer, which means he does not sell investments.

Here are six topics he’d like to discuss with us (below). These are Investment lessons he’s learned as a fee-for-service financial planner from preparing over 1,000 comprehensive financial plans.

Almost nobody can retire comfortably with a balanced or conservative portfolio.
  • After retiring: The 4% rule for annual withdrawals is more reliable with equities than bonds.
  • High risk of bonds as a long-term investment.
  • With most financial plans, 80% of retirement income is investment growth AFTER retiring.
  • Importance of a growth mindset. High equity focus is a huge benefit in a financial plan.
  • Getting the full equity return (global or US) over the long-term is an effective goal.
  • For further reading: https://edrempel.com/high-risk-of-bonds 
Risk tolerance is a learned skill.
  • Similar to “turbulence tolerance” with flying, learning to tolerate risk is a highly beneficial skill – possibly the most beneficial investment skill.
  • Study actual long-term stock market returns (crashes, recoveries, etc.), most people overestimate the risk of the stock market.
  • Further reading: https://edrempel.com/3-principles-of-successful-investors-part-1
“Dividend investing is a brain fart.”
  • Dividends are a withdrawal from your investments controlled by the company.
  • Self-made dividends are better than ordinary dividends IN EVERY WAY.
  • Further reading: https://edrempel.com/?s=brain+fart
Marginal tax brackets, including clawbacks of government programs, can change your financial plan completely.
Leveraged investing, such as the Smith Manoeuvre, can be the best growth strategy for the right people done the right way over the long term.
  • The Smith Manoeuvre’s expected benefit over 25 years is roughly the value of your home today without using any of your cash flow.
  • Investment loans for the long-term can be highly effective wealth-builders.
  • Further reading: https://edrempel.com/smith-manoeuvre
Importance of a financial plan. It’s the road map to the life you want.
  • You usually make very different financial decisions than you would without a plan.
  • Know exactly what to do to have the life you want.
  • What to do for saving, investing and minimizing lifetime tax.
  • Know which strategies might be most effective for you.
  • Further reading: https://edrempel.com/importance-of-one-financial-planner
4. Tom Loftus will describe how the Ottawa Share Club club set up Fantasy Pre-retirement and Retirement investing Portfolios for their club members to manage since 2016.

The members choose the initial stocks. Then the portfolio is monitored on an ongoing basis and improvements are made when members suggest trades to improve the portfolio’s performance. The improvement recommendations are voted on by the entire membership and the approved changes are implemented. 

These portfolios were designed to demonstrate the real issues members are confronted with when managing their own investments and savings.
 
“Our current stock contest tends to be a selection of the most popular stock picks at the initiation of the contest and operates on an annual basis,” says Tom.

“The Fantasy Portfolios offer members the opportunity to solve real portfolio issues like seeing a good investment idea and deciding what securities you will sell to implement the new investment proposal. The Fantasy Retirement portfolio has a realistic 4% withdrawal requirement for each year of operation.”

Here's a question for club members: 

Should we adopt a similar approach? Let’s take a vote at the meeting.

If a majority likes the idea, we can move ahead with establishing rules at an upcoming meeting, such as:

What kind of securities should we hold in the portfolios?

How can we achieve consensus on initial holdings and changes made at a later date?

5. General discussions
  • What are members buying, selling, or watching? 
  • What's the best or worst move you made recently? 
  • Would you do anything differently? If so, why not?
6. Next meeting: Tuesday, April 16, 2024, 7 to 9 p.m.

7. Adjourn

Club contact: EllensDegenerates@hotmail.com
Club Blogger site: https://ellensinvestment.blogspot.com
Club Google mailing list: ellensinvestment@googlegroups.com
Club Google Group forum: https://groups.google.com/d/forum/ellensinvestment

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