MAY 2017
What Makes A Great Investor? Peter Hodson P. 6
M T IN TH UT H IS If You Can't Drink 'Em, UA E T ISSU Buy 'Em L OP E: Richard Morrison P.25 FU N CANADIANMONEYSAVER.CA D S
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DIVIDEND & COMPANY NEWS • ETFS • TOP FUNDS • DRIPS • ASK THE EXPERTS Canadian MoneySaver z https://www.canadianmoneysaver.ca z MAY 2017 z 1
MAY 2017
SPECIAL FEATURES
What Makes A Great Investor?
Peter Hodson 6
Investment Portfolio With Spouses And Children Of Any Age Market Masters Interview With Francis Chou
Ed Arbuckle 8 Robin Speziale 11
Owning And Investing Inside A Permanent Life Insurance Policy Part 2 - How to Manage Risk Colin Ritchie 19 Common Trading Mistakes
John Copp 23
If You Can't Drink 'Em, Buy 'Em Profit From Products You Can No Longer Enjoy Racing To Your Financial Destination... Active Versus Passive Point, Counter Point –Dividend Metrics 101 5i Research versus ‘MyOwnAdvisor’
REGULAR FEATURES
Richard Morrison 25
Louis S. Harvey 27
Mark Seed 30
EDITOR-IN-CHIEF - Peter Hodson MANAGING EDITOR: Lana Sanichar CONTRIBUTING EDITORS Ed Arbuckle, Margot Bai, Robert Barney, Dan Bortolotti, Ian Burns, Bruce Cappon, John De Goey, Donald Dony, David Ensor, Ken Finkelstein, Derek Foster, Benj Gallander, Robert Gibb, Andrew Hepburn, Shelley Johnston, Robert Keats, Cynthia Kett, Ken Kivenko, Camillo Lento, Marie-Josée Loiselle, Alan MacDonald, Brenda MacDonald, Gina Macdonald, Robert MacKenzie, Ross McShane, Ryan Modesto, Caroline Nalbantoglu, Tim Parris, Peter Premachuk, John Prescott, Kyle Prevost, Brian Quinlan, Wynn Quon, Rino Racanelli, Colin Ritchie, Scott Ronalds, Norm Rothery, Stephane Ruah, Allan Small David Stanley, John Stephenson, Brian Tang, Angelo Vicere, Becky Wong. MEMBERSHIP RATES - All rates for Canadian residents are printed on the inside back cover. Non-residents of Canada may purchase the online edition only – at $24.95 for one year’s service. Canadian MoneySaver (CMS) is published by The Canadian Money Saver Inc., 55 King Street West, Suite 700, Kitchener, ON N2G 4W1 Tel: 519-772-7632. Office hours: 9:30 am to 1:30 pm EST Website: http://www.canadianmoneysaver.ca E-mail: moneyinfo@canadianmoneysaver.ca PRIVACY POLICY - CMS may make its members’ mailing list or e-mail addresses available to carefully screened companies or organizations offering products or services that may be of interest to you. If you prefer not to receive these offers, send us your mailing label with “Do Not Rent” written on it. (Required statement. We do not rent addresses.) Canadian MoneySaver publishes monthly with three double issues (July/Aug, Nov/Dec and March/April). Canadian MoneySaver is an independent, totally membership-funded magazine. The information contained in Canadian MoneySaver is obtained from sources believed to be reliable. However, we cannot represent that it is accurate or complete. The views expressed are those of the writers and not necessarily those of The Canadian Money Saver Inc. Neither the information nor any opinion expressed constitutes a solicitation by us for the purchase or sale of any securities or commodities. Canadian MoneySaver is distributed with the explicit understanding that Canadian MoneySaver, its publisher or writers cannot be held responsible for errors or omissions. Shareholders of The Canadian Money Saver Inc, editors and contributors may at times have positions in mentioned investments/securities. Copyright © 2017. All rights reserved.
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MAY 2017, Volume 36, Number 7
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4 z Canadian MoneySaver z https://www.canadianmoneysaver.ca z MAY 2017
M
ost magazines know full well never to discuss politics or religion in their editorials. Doing so only tends to antagonize at least half (usually more) of your readership. There will always be an opposing (sometimes nasty) viewpoint. So, we won’t be discussing Donald Trump here, at least as far as his politics go. However, when managing an investment portfolio, one can never completely ignore the political backdrop. For example, no matter how you might feel about the new US president, it is very possible that some of his planned initiatives could be quite good for businesses. Reduced taxes, reduced regulation, and the possibility of repatriating overseas cash could all boost the profitability of large corporations. Higher defense spending could boost the profits of aerospace and military contractors. And, as you know, what’s good for businesses tends to be good for the stock market. The market has gone on a nice run since the US election, as investors anticipate changes and buy into a ‘new growth’ era. This growth still has to materialize, however, and as we saw with the Health Care bill, change is not easy. Investors are expecting a lot, but politicians (and companies) still need to deliver good news. Despite the market rally, we would still—as always—keep expectations in check; many things could still happen—both good and bad. So whether you like a politician or not, your portfolio can still be materially impacted by their actions. So we would, at least, pay attention to politics, whether you agree with politicians’ moves, or not.
Peter
Peter Hodson