Weekend Reading – Tuning out the investing noise

Weekend Reading – Tuning out the investing noise

Hey Folks, 

Welcome to a new Weekend Reading edition, back from vacation, with tuning out the investing noise on my mind.

I’ll share more details about my trip to and from lovely Belize over the last couple of weeks in a future post.

Our view for the week, from Ambergris Caye, San Pedro, Belize. It was great… 

Some recent posts and updates on my site:

Congratulations to the winner of this giveaway – I will coordinate your autographed copy with Jessica!

A reminder we hope to earn over $52,000 this year from part of our portfolio, that includes a mix of stocks and low-cost ETFs. I hope to provide an income update from February in the coming week or so…

Given the very messy U.S. politics of late, that could get worse (!), I’m voting with my wallet to shop more locally and buy more Canadian goods than ever before when it comes to investing and shopping during Trump’s idiocracy.

I provide an important link to a Made in Canada Grocery Guide in that link above – please check it out!

Weekend Reading – Tuning out the investing noise

With thanks and attribution: The Behavior Gap.

Easier to say, harder to do!!

Inspiration for this headline arrived from the market turbulence over the past week. 

A financial plan covers many things.

What is a Financial Plan and what should it cover?

Within your financial plan (my own investing plan), from an investing standpoint, it is one that is balanced and tailored to me; aligned to our investing time horizon, includes our investing goals and related risk tolerance, and it’s strategically followed heck or high water – including buying stocks or ETFs if/when things tank.

Sticking to your investment plan sounds easy, especially when markets are doing well, but now we’re into extremely challenging and volatile times it’s not so easy I know. 

There’s always uncertainty in the markets and so part of that, taming fear, is a powerful force that is difficult to overcome.

When stocks fall, our emotions make us think they will fall even further and we need to do something.

When stocks rise, our emotions make us believe they are going to rise even more often providing false confidence.

My approach/things I’m practicing right now in each key investing account is the following:

• RRSPs – We’re doing next to nothing. Dividend Reinvestment Plans (DRIPs) have been turned off and cash amounts from dividends and distributions paid are building up for future withdrawals in 2025 and 2026 when we might not be working. Throughout 2025, a workplace transition year for us it seems, is to increase our cash wedge for near-term spending; specifically inside our RRSPs so we might not buy any stocks or ETFs at all…
• TFSAs – When it comes to our TFSAs, if you’ve been following along in recent months, you already know we maxed out those accounts and we no longer have any contribution room left. Our 2025 TFSA contributions are now done and those contributions are now invested in low-cost XAW. When cash builds up from some dividends and distributions paid inside these TFSAs this year, we are likely to buy more XAW even if XAW tanks in price. Otherwise, no further portfolio changes. 
• Non-Registered – We also have two taxable accounts – those accounts invest in Canadian dividend paying stocks for income and growth. While some taxable investing could occur in 2025 here and there, I’m not banking on much of it. I continue to believe we’ll forego lots of investing there and simply save up money where we can this year instead, inside a higher interest savings account (HISA) for near-term Canadian (!) travel.

Again, if you’ve been following along closely, I loaded up more on a few Canadian stocks in recent years: Tourmaline (TOU), Brookfield (BN), and Canadian Natural Resources (CNQ). I might add more of those if/when prices continue to correct. 

As you can see, across all key investing accounts, a fairly boring and easy to explain approach. But I’ve learned that from others – that stuff works well for them too. 

This is why I’m such a big proponent of having an investment plan that you can stick to during a wide range of market and economic environments – it makes it easier on your investing brain. 

Tuning out the investing noise to me means:

• Going against your natural emotions at times. Staying calm when others are losing their minds. 
• Thinking and acting long-term when others are being short-sighted.
• Making ongoing plans that focus on months or years.
• Largely doing nothing when professionals, talking heads, and markets are tempting you to do something. 

Financial planning is a process – I believe it’s an ongoing evaluation of where you are and where you want to be. In some cases as part of that process it’s about not making any changes at all.

How are you coping these days? Have you made any portfolio changes in recent weeks? Are you planning to adjust anything? Do share in a comment below – would love to engage!

More Weekend Reading – Tuning out the investing noise

Smart investors realize investing effort is often inversely related to results. In support of that theme, a few other tidbits this week!

I enjoyed this article: 3 levels of retirement readiness. At some point I should write a post and take his test. 🙂

Fritz also wrote about 5 important factors in your decision to retire – and I did take his test.

5 Important Factors to Consider in Your Decision to Retire

Related to tariffs, my friends at 5i Research highlighted a few Canadian companies that are well-positioned to weather Trump U.S. tariff war on Canada.

I enjoyed Rob Carrick’s four steps to defend your portfolio against Trump and his trade war on Canada (subscripition):

1. File your taxes, get any tax refund back; put that money to use. 
2. Prepare for higher inflation. 
3. Grit your teeth and scan your investments to ensure they align with your risk tolerance.
4. If not already done, find the right high interest savings account (HISA) for your money. 

Want support to train your investing brain? Get a quality, low-cost balanced ETF that holds a mix of stocks and bonds for times like these. Morningstar shared some of their favourites that align with my post as well.

The Best All-in-One Exchange Traded Funds

Morningstar:

Have a great, safe weekend and stay sane during this ongoing turmoil. I will try and do the same. 🙂

Mark