A Fintech, RoboAdvisors and Dividends Journal; My financial Trek through the risky business of investing online
Tangerine is strictly an online bank,
owned by Scotiabank and has the bonus
of paying more interest on savings accounts
than the brick and mortar big 5 banks in Canada.
Tangerine accepts transfers, from and to all
major banks. With a $100 deposit, a new member receives an additional $50 from Tangerine.
Please add my Orange Key code when registering; 24769201S1
Investments and REIT's with self-directed TFSA accounts focusing on monthly dividends.
Just as an example of the growth since late 2011
with Tangerine investments (Over 3 billion under management) ... their 'Equity Growth' fund since 2011 started and fluctuated from $10 to $9.71 in November; today is $19.12 per unit. Nearly doubling a starting investment back then and averaging a growth of 11.57%. Nothing to sneeze at for long term holders.
Wealthsimple is launching a Trading site for Canadians.
What is Wealthsimple Trade?
Wealthsimple Trade is a stock-trading service that lets you buy and sell stocks and exchange-traded funds (ETFs) through a simple mobile app, with $0 commissions and no account minimums.
Better-than-bank level security and accounts are CIPF protected up to $1,000,000.
The majority of Canadian REIT's continue to be stable in the ups and downs of the markets. Dividends, based on the number of units held, are paid monthly and statements/stats are issued from past years to current where I look for consistent yields and a sense of steadiness. With 5 or more years of paying a steady dividend or mild stepped increases ... that's what I'm seeking.
Can't go wrong with the big 5 banks as well. They are listed in many an ETF these days.
As I collect my Dividends from the REIT's I hold with plans to steady build on that, I keep tabs on the finance news which can be information overload at times. I focus more on the overall picture as it changes from week to week, month to month and how it 'weighs' on the stock markets.
Of course Trump is not happy unless he's causing a headache for investors; currently thinking on starting a trade way with Europe.
On the positive side, slowly rising Oil prices are due to cuts/or holding production at a current flow. Good news for our oil and energy related companies/stocks.
Meanwhile, keeping fees and commissions as low as possible is my aim so there is less impact on my bottom line
Wealthsimple Trade is now live for cellphone and tablets. Currently, I'm waiting for the site to become available on desktop.
Wealthsimple Trade is currently testing it's Trading site available via it's 'app' on cellphones. That will be available for desktops and laptops in the future. No fees for buying stocks, which will draw a lot of customers I'm sure that are paying up to $9.95 per buy and sell currently. That takes a lot of fees out of the picture for folks who do a lot of trading.
REIT's, my main interest are for the most part, performing normally. There's not a lot of increase in the actual price of the Trusts on average but the my concentration is that the monthly dividends have a steady history of payments with low increases over time are ideal.
The overall Stock Market has improved a lot since the December 2018 woes but there's a few issues, as always weighing on the Markets and many an investor's minds.
The Wealthsimple Trade 'app' is in beta testing to some and I'll update about that.
I see the Wealthsimple savings account is up to 2% now, being one of the highest in Canada to add growth to your savings each month. Yearly, calculated daily and added each month.
Although I don't own an ETF as yet although I've been window shopping, in Canada ETF spends passed Mutual Funds by a wide margin for the first time. Two reasons are low fees and the ability to sell quick instead of waiting for a sell to 'settle' .. 2 to 3 days.
In the first 11 months of 2018, ETF's brought in $18.7 billion compared to $7.8 billion for mutual funds.
For example, being a fan of REIT's, there are ETF's that include all the major REIT's in Canada with monthly dividend payments. 'Weighting' where more units/shares are bought in one REIT compared to another takes some research and that is adjusted along the way.
Currently, I'm buying REIT's individually, only incurring the 'buy' trade fee and no management fees so there's good points about both.
As of today, the TSX has been moving up nicely so far from the lows of December.
Although, the main issues that fueled a major sell off in the stock markets in the last few months of 2018, linger, Markets have improved so far, showing steady gains. I see that with my invests moving back up to their 'normal' range for now. Rising interest rates this year and no progress yet on the US - China Tariff war as yet, will factor in; or what they call 'weigh' (put pressure) on the Markets starting 2019 plus the issues that smolder slowly and those that pop up out of the blue. Like Apple's past missed revenue forecast, now history. Their shares took a dip after that report but climbing once again.
The benchmark and index, TSX is what investors keep a watch on as they work their portfolios, Monday to Friday. Investing in a TSX based fund or ETF, 2018 ended as a loss, recovering some in the later part of December. Always on my mind is how REIT's are performing and looking at Blackrock's Canadian REIT based ETF, ended in a positive note for 2018.
REIT's do sway some with big fluctuations in the TSX but not as much as other stocks.
Very interesting to see how the stock market reacts and performs starting tomorrow for 2019. The major banks and weed stocks stirring more interest at this time.
The Stock Markets continue to plunge causing worry and more selling along with some panic. I've seen these negative trends where it gains momentum with the human factor involved.
On my end, I'll stick with my investments and wait for better days that will come once again, eventually. Meanwhile it's a good time to wait it out with cash in preferably a high interest savings account
As I suspected from my December 9th Blog Notes, the Markets were by far from upbeat again today for numerous reasons.
One of my fav REIT choices so far being Killam, KMP.UN isn't influenced by the TSX broad benchmark and rose just shy of $17 a share, $16.98 and closed at $16.90 at 4 PM EST.
I read and follow ... Equedia Investment Research and the in depth newsletters they send out. They have like an 'outside of the box' look on the latest goings on in the investment world and some of the factors that influence it.
The latest 2 articles focused on a bottled water company and it's stock within a year has gone from just above $1 to near $7 at closing today ... actually rose over a dollar today ... The Alkaline Water Company, TSXV: WTER
Doing some research myself, impressive growth and shipping it's product to a lot of the major retailers out here on both sides of the border. An interesting stock to keep an eye on.
There is is an interesting development with the big banks of Canada. I'm notified when their fees are updated with some hikes or rarely, no change. However, there is more of a common complaint now that overall fees are getting higher and folks want to see something in return. Mainly, more interest on their savings accounts or move to a bank that will and does.
I'm certainly a fan of that. Scotiabank has introduced a short term 3.2% rate on a specific savings plan until March. That's a start. Hopefully that will spark more savings account rate hikes with the banks. Scotiabank's virtual or totally online
bank, Tangerine offers close to that rate for longer terms. That's the main reason I'm a long time member of Tangerine formally known as the Ing Bank of Canada.
With more on savings ... the TFSA (Tax Free Savings Account) has a new maximum contribution limit of $6,000. Cool.
I grow my funds within TFSA's such as the dividend paying REIT's I mentioned in previous posts.
With the current Market woes, I'm happy with my REIT choices as they move slightly with the ups and downs of the TSX and other factors working on the markets these days. Looking at my portfolio this morning I see they are about in the middle between the 52 week high and lows so that's good to see.
Living here in Halifax I see a new mix of apartments completed or in construction with apartment rental above and several retail spaces below on the ground level. More of a stay at home shopping experience depending on the shops available. I think with online shopping and delivery for groceries ramping up quickly with big box stores here, these multi use buildings are a wise addition to the REIT's.
Looking at the railway in Canada and the dividend stock available ... I see that sector may get a big boost to their workload as the Federal Government are contemplating buying a lot of rail cars to haul oil south to the US where their planned pipeline project is blocked by a US court for now. CNR.TO - Canadian National Railway Company and CP Rail - TSX: CP are the two railway companies in Canada that could get a boost from the Feds.
According to a sort of Bank of Canada poll and putting fingers on the pulse of the investor world in Canada, it's not that rosy yet and no positive predictions either. US and World markets tend to affect us so there's a lot of investor tension on the go. Probably a lot of funds sitting in 'cash' accounts waiting for brighter days where the TSX continues to be flat or dips into the negative for a day.
Over the long term, these events don't matter but when folks look at their shrunken portfolio values compared to mid 2018, it gets them to thinking about the future, which no one can predict of course.
For me, I continue my interest in REIT's and high interest savings accounts
like Tangerine until I see a more 'positive' trend in the Markets.
Like most investors, I continue to watch the state of the Markets to see if the October scare is history or will it have after effects. So far this week with some normal bumps, things are improving. Trade wars had a negative taint on it all until the US and China news that they will meet to see if some resolution can come of all that which Trump started.
Meanwhile, my REIT holdings didn't move much during the recent dips in the Markets. Confirms my stand that they are reliable and consistent.
It's been quite a bumpy ride in the markets this past week and it's not over yet although today, there was some recovery. I read something like a few trillion in 'sells' world wide. Here in Canada, the TSX fell the lowest in 3 years and struggling to get back up to norms although a few Banks figure it will recover and then some by the end of the year. If that becomes true, it would a good time to buy a S&P/TSX Capped Composite Index ETF
That leaves a lot of stocks at lower prices ripe for buyers to pick up that are interested and I'm sure some investors are doing that. Discount shopping.
As for me, I'm sticking with the dividend producing REIT's as a base, there was little impact on their stock prices, even seeing a gain here and there through the storm in the Markets. PRV.UN and KMP.UN (that gained 2.48% today) so I'm pleased with my invests to date as I move forward.
Investing is always about what my accounts look like today and always planning ahead with no 'guaranteed' results. Past history, current price/values and forecasts are all a click away on Google, Yahoo Finance, Stockhouse, Morningstar, etc.
With our ties to the US, when things happen down south with the Markets, tends to reflect in our own Market with TSX being the benchmark. International issues weigh in as well from day to day.
Then there's the individual stock that's on my radar that looks a solid performer knowing it's current value could by possibly hyped higher than it's normal value, with short sellers planning to dump at a certain point. No one wants to pay the high price and then see it drop, losing money.
It can be information overload researching but a good feeling when the right choice is made.
REIT's with monthly dividends and TSX/S&P 500 'type' ETF's are great for long term. There's countless great opportunities out there as well to build on.
Staying calm when Markets are in a plunge takes some discipline for sure as Investors see their account values dropping. My latest post entitled ... Rogue Waves where I share my experience during the 2008 crash. This weeks numbers are still a tad shaky as International tensions with Saudi Arabia came to a head over the weekend. Better days ahead.
If you checked out the Canadian Couch Potato's podcast and article, you can see by punching in numbers on Larry Bates's T-Rex calculator how much management fees have an impact on an investment.
Financial institutions and Banks now know the glory days in that area are over and in Canada, TD bank is slowly changing with the times. I'm sure other banks throughout North America are doing the same to keep customers and gain more.
TD, starting in November is revamping their ETF's and going low with fees; highest being 0.08%. That's cheap compared to 1 and 2% and a 98% high score on the T-Rex calculator. Also a robo-adviser service is being introduced soon
However Trade fees start at $9.99.
In comparison, Wealthsimple Trade launching soon, has zero commissions on trades. That will be a money saver.