Personal Financial Planning: Behaviour and Its Implication for Wealth Accumulation – A Different Spin on A Beaten to Death Topic

Jake · Mar 4, 2026 7:27 am

tired woman sleeping in cozy hammock in flat — Photo by KATRIN BOLOVTSOVA on Pexels.com

The way things are now, there seem to be a lot of compelling reasons to work with an investment advisor. Increasing complexity, market volatility, and geopolitical uncertainty. All the issues might encourage you to seek professional advice. But before you jump into paying a whole bunch of fees and outsourcing control of your money.

My experience in talking with investment advisors has been an unhappy one. Notwithstanding many years of “experience”, I have found their knowledge to be, at best, superficial. Many of these investment advisors are simply pushing internal products for their institution to increase the assets under management and the profitability of the firm. In my opinion, they are foremost salesmen and secondarily investment advisors. They use “canned” presentations to sell products and have very shallow knowledge of ta, accounting and the fundamental concepts of finance.

I’m not sure where the real work gets done, but it’s not at the investment advisor level. IN many instances, if you do your own “due diligence,” you will likely know more than they do. It’s a great disservice to investors and clients that this is how the industry has developed, but it generates billions for the firms that are involved in investment and advisory fees. And as a result, a lot of “fat cats” are harvesting billions for their firms.

So, What Should You Do?

Investment advisors have a role to play, but you need to take a lot of time and effort to find the right one for you. That means that you will likely need to interview a lot of IAs to get a feel of their level of knowledge and professional expertise. Remember that you are interviewing them for a job. You are hiring them; they are not hiring you. Don’t be bullied by them when they try to convince you that they are experts who can best help you. You are paying them, and you are the boss. Don’t forget it!

This is the one area where I have been totally underwhelmed by the people I have talked with, except in one case. One of the IAs that I have interviewed is new at the “business”. He has been open-minded and encouraged a relationship where he is there to serve me, not the other way around. The others have all had the attitude that they are basically doing me a favor taking me on board.

Most of them have not asked me what I need, what I want, what my goals are and how to achieve them. I have to fit into their “mould”. I am paying them, and they tell me when I discuss my needs that “that’s not what we do here.” What does that mean? I am paying you, you do as you’re told!

Stays away from these “fake” professionals who are only concerned with how much income they generate, not about how much money you make.

#investing #investment advisors #investment philosophy #investment strategy #investments

Jake · Mar 2, 2026 3:01 pm

On Monday, January 5th, the stocks that I follow continue to stay strong. I find that buying opportunities, namely what I believe are reasonably priced stocks, are limited. I have yet to articulate a set of decision-making rules to purchase stocks. I’m also having difficulty reducing my performers, which have done so well for the last decade. The is emotion defying logic, and one would think that it is something to squeeze out of the decision-making process. Not so easy.

I have come across an intriguing company that I bumped into before, but I didn’t follow up on. Ferrari (RACE). More on that latter.

#Ferrari #investing #investment philosophy #investment strategy #investments

Jake · Mar 2, 2026 3:01 pm

I called CIBC Investor’s Edge this morning. I waited almost 40 minutes and then gave up. When the call was picked up, I was told there was a 15-minute wait.

One of the big issues with these self-directed trading platforms in Canada is the absence of customer support. I look at the Investor’s Edge website, and responses to email enquiries need 3 days. 3 days! How can you get anything done? Why do clients who are paying good money for services have these ridiculously long wait times?

The sad reality is that these organizations no longer work for us; we work for them. Long wait times, paperwork, whatever it is, we have to do everything, and they collect the fees. It’s a sad state of affairs.

bored formal man watching laptop at desk — Photo by Andrea Piacquadio on Pexels.com

#CIBC #CIBC Investor's Edge #investing #self-directed trading platforms #trading

Jake · Mar 2, 2026 3:01 pm

It’s already January 5th. We are now already into the New Year, but we only have one trading day behind us. I continue to search for suitable investment candidates that meet my stringent but undocumented investment requirements. Over the years of investing, I have failed to establish a clear and concise investment plan. This resulted in my investment decisions being somewhat random.

Eliminating greed and second-guessing from investment decisions requires a structured, disciplined approach that focuses on a long-term plan rather than short-term emotional reactions. By understanding the inherent psychological biases, you can create systems to mitigate their impact.

One issue that pops up all the time is my ability to manage my emotions. Much has been written on the topic, but little has found its way to print.

Strategies to Manage Emotions
• Develop a Written Investment Plan: Before investing, outline your specific financial goals, risk tolerance, and time horizon. This serves as an anchor during volatile periods. When emotions run high, refer back to this objective document to ensure your actions remain aligned with your long-term strategy.
• Focus on the Long Term: Acknowledge that short-term market fluctuations are inevitable. A long-term perspective helps you avoid impulsive reactions to daily news cycles, which are often designed to evoke fear or greed.
• Diversify Your Portfolio: Spread your investments across various asset classes and sectors to manage risk. Diversification can cushion the impact of market downturns and reduce the intensity of fear or the desire to chase a single “hot” stock out of greed.
• Use a Rules-Based System (e.g., Rebalancing): Regularly review and rebalance your portfolio to maintain your target asset allocation. This provides a structured, automated way to make adjustments without emotional input, such as selling assets that have performed very well (curbing greed) and buying those that are underperforming (countering fear).
• Implement Stop-Loss Orders/Position Limits: For those who struggle with selling losers, using pre-defined stop-loss points can help convert temporary losses into smaller, permanent losses, protecting capital and removing the agonizing decision-making process in the moment.
• Practice “Average In, Average Out”: Instead of trying to perfectly time the market, invest a fixed portion of your intended position at set intervals (dollar-cost averaging). This removes the pressure of “second-guessing” the exact right moment to buy or sell.
• Limit Exposure to Market Noise: Turn off financial news and avoid social media groups that promote sensationalized or biased content. Constant exposure to market commentary can heighten emotions and lead to irrational decision-making.
• Maintain an Investment Journal: Document your trades and, importantly, your feelings at the time of each trade. Reviewing this journal later can expose emotional patterns that need adjustment, building self-awareness.
• Seek Professional Advice: An experienced, objective financial advisor can provide valuable guidance, help you stay on track with your plan, and offer an unemotional perspective during times of market volatility.

These are rules that are fairly easy to set out, and not so easy to implement. One part of this that I would find particularly useful is in the Investment Journal. This would document trades. I have no idea which are my losers and winners, as my online platform provides little in the way of detail (historical) on trades. Yes, use paper, not a spreadsheet. Spreadsheets are, but paper is better.

#investing #investment philosophy #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:01 pm

On December 31st, markets exhibited some anxiety regarding AI stocks. Everywhere you go, you hear AI. It;s really getting very tiresome. Almost to the point that you have to believe that we are in a bubble. Most of the market gurus say we are not. Reason to be concerned. You can look at all the usual market indicators, but it’s not a substitute for intuition. Ultimately, one needs to go with one’s gut feeling and stand tall in the face of the herd. But it’s not easy by any means.

#AI bubble #AI stocks #investing #investment philosophy #investments #portfolio strategy

Jake · Mar 2, 2026 3:01 pm

Looking around at common stocks using the old p/e ratio as the valuation metric, things look pretty scary. Most of the growth of large-cap companies has been fueled by an increase in p/e ratios. I have been watching CAT (Caterpillar), the stock for which has doubled in the last twelve months or so. The p/e ratio has more than doubled. This represents the anticipation of growth, not necessarily the actual growth that is taking place.

Much of this is driven by the never-ending thirst for AI and AI-related stocks. It’s hard not to get sucked in to the search for gold and lose sight of my investment objectives, which I have never articulated.

It is very worrisome. I had some great stocks that I disposed of, which had high p/e ratios that were rewarded with even higher p/e ratios. But another problem that comes up for consideration is portfolio rebalancing. If you bought Google after the IPO, you would have had an overconcentration problem in fairly short order. Rebalancing would have taken away the enormous profits that would have been made by hanging on to the stock.

I have no answer to this risk mitigation strategy. But eliminating risk would have eliminated making huge profits since that time. I don’t know. Heads you lose, tails I win. If you figure out the answer, please let me know. But being retired makes the risk-taking even more complicated.

#AI stocks #investing #investment philosophy #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:01 pm

Another aspect of registered savings plans in Canada (RRSPs, RRIFs and others), is their portability. What I am referring to here is what happens to these plans in the case where you might want to retire in a country other than Canada.

I have been researching the subject, and a couple of things have come up. First, it’s very difficult to get a clear answer on what happens when you emigrate from Canada. It seems that policies differ from bank to bank, perhaps to a great extent or maybe with minor differences.

What is clear is that in some cases, you will lose access to your portfolio online. What that means is that you will need to actually call in to do a foreign exchange transaction or move funds from your registered plans to your bank account.

As I mentioned above, your account may be coded sell only. So that means that your portfolio is frozen in time, and you cannot make any adjustments to your portfolio other than a sale. If you want to replace one stock with another, you cannot do so. You can only liquidate into cash. It makes traditional portfolio management impossible.

I did a search using AI on how one might manage a portfolio in this situation. It came up with this:

ETFs are generally a better choice than individual stocks for a portfolio that can only be liquidated and not replenished with new purchases, primarily due to diversification benefits and lower single-stock risk.

Why ETFs are Generally Better

Instant Diversification: An ETF is a basket of many underlying securities (often dozens or hundreds). This structure immediately diversifies your holdings across different companies and potentially sectors, which significantly reduces the impact of a poor performance from any single company within the fund.
Reduced Single-Stock Risk: Individual stocks carry idiosyncratic risk (risk specific to that single company), such as a product failure, a lawsuit, or poor management that could drastically drop the stock price. In a liquidation-only scenario, you can’t buy more shares to average down your cost basis or rebalance if one stock plummets. An ETF mitigates this risk by spreading it out.

Built-in Risk Management: With no ability to make new purchases or rebalance actively, the inherent diversification of an ETF acts as a protective shield against volatility. Your portfolio is more resilient to market shocks.

Liquidity and Trading: Most major ETFs are highly liquid and can be easily sold on exchanges, just like individual stocks, ensuring you can liquidate when needed.

Why Individual Stocks Are Riskier in This Scenario

Concentration Risk: If your portfolio only holds a few individual stocks, the failure of just one company could permanently impair a significant portion of your capital, with no way to recover that loss through future investments.

No Rebalancing Capability: In a normal portfolio, you would sell overperforming assets and buy underperforming ones to maintain your target allocation. A liquidation-only scenario prevents you from buying, making it impossible to rebalance. An ETF, while not rebalanced by you, is managed by the fund manager to track its underlying index or strategy, providing consistent exposure over time.

Conclusion

For a portfolio that cannot make new purchases, the priority shifts to capital preservation and risk mitigation. The diversification and risk-spreading properties of ETFs make them a superior and safer choice for maintaining value until liquidation.”

Seems like pretty good advice. I’m 74, it might just be good advice in general.

My point is that you need to be very careful before emigrating. You don’t want any surprises that you can’t manage. At the same time, I should add that some of the investment dealers will close your cash accounts, period. So if you have a portfolio of stocks in a non-registered account, you will, in some instances, be forced to liquidate them. It will not generate any additional tax because of the Canadian departure tax on emigration. But it will mean you will need to buy back your portfolio in your new country, and there may be impediments to doing so. This is really messy, and you need to be very careful.

Another matter is making sure you have a Power of Attorney in place so that you can have things done for you when you have left the country. In the absence of this, you may be forced to return to Canada to take care of this kind of stuff.

The same applies to your bank accounts. Check and double-check what happens.

One maddening aspect of this is the refusal of any of the banks to put anything in writing. No matter who I spoke to, nothing in writing on this topic. Maddening.

#investing #investing philosophy #investment accounts Canada #investment strategy #leaving Canada #portfolio strategy #registered plans Canada

Jake · Mar 2, 2026 3:01 pm

It’s important to give Power of Attorney (“POA”) over your accounts to somebody. You can do a search on the internet for what a POA is and what it does. Every legal jurisdiction is different. The real challenge is getting someone at your bank or investment dealer to have it put in place. My goodness! What a challenge! You will need to be patient to get this done, and sometimes you’ll get some pushback from the bank on the POA (they want their own form, this or that or some other complication that you would never think of).

Sometimes the bank employees are poorly trained and haven’t a clue. Do nothing by phone. Go in person to the bank, and if you can’t get it done, go to a bigger branch if you can. It’s hard to understand why this is so difficult to do.

Rememeber, assume that there will be delays and that getting it done will not be straightforward.

#managing your bank accounts #POA #Power of Attorney

Jake · Mar 2, 2026 3:01 pm

I’m back at looking at the stock markets and individual stocks. I cannot escape finding companies that have P/E ratios in the 30s, which are relatively slow-growth and arguably have limited prospects. In many cases, these stocks are promoted by billionaire investors who are attempting to inflate their stock prices. This used to be illegal, but now it’s an everyday occurrence.

“Valero (VLO): Michael Burry, of “Big Short” fame, revealed this week that he’s owned Valero since 2020. He argues that Gulf Coast refineries are “purpose-built for Venezuelan heavy crude” and would eventually “produce better margins across jet fuel, asphalt, and diesel.”

Valero operates 15 refineries that can process 3.2 million barrels per day of the heavy, sour crude Venezuela produces.”

I guess his ownership of Valero was kept quiet until now. I don’t know about you, but this stinks.

#investing #investment philosophy #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:01 pm

Yesterday was another day of fresh highs on the Dow. I continue to be fearful about valuations, but I seem to be howling at the moon. My review of individual stocks continues to reveal inflated valuations that seem to bear no relationship to reality. And now, everywhere I look, recommendations on AI-related stocks seem to be more sanguine than in the past. The problem that I have is that I am not in a position to take open-ended risks, as I live on a fixed income with monies going out and only dividends and interest coming in.

The trick would be to find a surrogate stock for AI or semiconductors. One such stock is 5NPlus. 5N Plus (VNP) produces ultra-pure specialty semiconductors and performance materials, using proprietary techniques to refine metals like bismuth, tellurium, and indium, serving critical industries such as solar energy (like Cadmium Telluride for First Solar), medical imaging (X-ray detectors), security, and pharmaceuticals. The company transforms mining waste into high-purity elements, enabling advanced technology and sustainable solutions in various high-tech sectors.

The stock trades at a reasonable valuation (relatively speaking, of course), with good growth potential and a business model that is not entirely reliant on AI. It’s had a good run, but nothing crazy.

The question that always remains in my mind is whether I’m overthinking things. No one can control the outcomes of their investment decisions. I can only hope to do the best that I can and manage expectations that I can execute things perfectly.

Relying on financial statements and all of the quantitative analysis seems to have less impact on investment success than simply picking solidly managed companies that you invest in for the long term.

I continued after many years of being a stock market investor, selling when people panic and buying into euphoria. Now in my seventies, I still make the same mistake. I just can’t seem to learn.

#5NPlus #investing #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:01 pm

Today I tried to contact CIBC Investor’s Edge at 8:45 AM. I waited for 45 minutes without being “picked up”. This evening I called CIBC Investor’s Edge at 4:57 PM. The estimated wait time was 66 minutes.

To their credit, I wrote to the CEO. Someone responded in about an hour to help. Have I found a home?

#CIBC #CIBC customer service #CIBC Investor's Edge

Jake · Mar 2, 2026 3:01 pm

I am considering changing financial institutions for my RRIF and LIF. This has become an incredibly challenging and time-consuming process. Issues keep popping up everywhere I turn. One such issue is the payments made from your RRIF or LIF when you move your account. If you move your account, the remaining RRIF or LIF payments will have to be made for the current taxation year.

In other words, say you moved your RRIF in January after your first payment. When the account is transferred, the payment will be for the remaining eleven months of the year. One lump sum.

Example: Move RRIF January 15, 2026

Payment Date: The 10th of the month
Payments made monthly for 2026: $5,000
One final payment is to be made before transfer: 11 * $5,000 = $66,000

Depending on how you manage your portfolio, this may be easy or hard to fund.

Just another thing to think about. You must plan your RRIF or LIF account transfers for the end of the year to avoid this situation.
You will need to fund a payment of $11,000, and the RRIF payments will recommence on January 10, 2027, if that’s your payment date.

Why did I ever start up with this all those years ago and have these shackles on my legs every time I try to do something?

#LIF #portfolio strategy #RRIF #transferring a LIF #transferring a RRIF

Jake · Mar 2, 2026 3:00 pm

Markets were quiet today, awaiting this, that or the other. It seems like markets are always waiting for something. I’m waiting for my stocks to go up, but a watched pot never boils goes the saying.

Stock markets continue to be dominated by AI. AI here and everywhere.

I find that a lot of the talking heads spew out totally useless and misleading investment advice. There is no accountability or back-checking of what guys like Cramer say. Here is the AI answer about Cramer and General Mills:

Yes, financial personality Jim Cramer has a history of recommending General Mills. However, his stance has evolved, shifting from a long-term “Steady Eddie” buy to a more cautious “hold,” depending on market conditions and company performance (TheStreet, CNBC).

Historical Recommendations:” Steady Eddie” Buy (2013, 2015): Early on, Cramer was impressed with the company’s management and viewed General Mills (GIS) as a stable, long-term investment suitable for income and growth portfolios, even for buying for children’s portfolios. He also called it a buy opportunity during a product recall, viewing it as a temporary issue.

Appetizing for Investors (2015): He recommended the stock based on its shift toward more natural and organic ingredients, tying it to a food revolution.

Too Cheap to Ignore (2019): In 2019, Cramer recommended the stock again, feeling it was undervalued and leading a rebound in the packaged food sector.

Shifting Stance and Current Caution

Over time, Cramer’s view has become more nuanced, reflecting challenges in the consumer packaged goods industry:
Valuation Concerns (2016): While he acknowledged the stock’s strong performance, he noted that analysts and hedge fund managers questioned its valuation and lack of organic growth.

Performance Issues (2025): More recently, he has expressed concerns about the company’s performance, citing weak numbers and a slowdown in the snacking category as an “existential” issue for the whole group.

“Hold” or Cautious Outlook (2023-Present): His current stance is generally more cautious. He has moved General Mills from a “buy” to a “hold” and expressed significant concerns, especially regarding inflation and potential margin sacrifices. He has even said, “I’ve gone from here to here, meaning, no, not much stance changed at all,” and noted the stock can be a “major laggard” in the consumer goods space.”

With a guy like this, who knows what the heck to invest in? Cramer invests in stocks, not enduring businesses with a lot of goodwill (an intangible asset).

You need to develop the mindset that you are investing in a business. Kellogg’s and General Mills were both in the business of selling repackaged sugar. How long could that last? Maybe you can say the same thing about KO, but over the years, they have broadened their product lines to healthier alternatives. But what do I know?

#Cramer CNBC #investing #investment philosophy #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:00 pm

Markets continue to be all over the place. I’m not sure whether it’s all the geopolitical stuff going on out there that is messing it up. I had another look at some of my stocks, which are trading well below their twelve-month highs. I am shocked that the Dow and the Nasdaq keep hitting new highs while my portfolio continues to decline in value. What the heck is going on? You can talk about market leadership, but will it ever rotate back to traditional industries? I can’t see that happening in the near future. So does that mean the whole concept of a diversified portfolio of individual stocks is down the tubes? I don’t know the answer.

I don’t know about you, but this is very troubling, particularly for those who run their own investment portfolios and trade individual stocks. But the “old” names don’t seem to work anymore. But for how long?

#investing #investment philosophy #investment strategy #investments #market leadership rotation #portfolio strategy

Jake · Mar 2, 2026 3:00 pm

With the continuing enthusiasm for AI, I am reminded of a policy that a bank I used to work with had regarding new projects. We used to call them “build it, and they will come.” The bank would never finance these projects without substantial guarantees. The forecasts were always overly optimistic. We have that now. No doubt. The question is ultimately one of whether or not they will come. If they don’t come, this entire structure will tank big time.

white and black no smoking sign — Photo by Eva Bronzini on Pexels.com

#AI stocks #investing #investment philosophy #investment strategy #investments #portfolio strategy

Jake · Mar 2, 2026 3:00 pm

Over the years, I didn’t notice that, notwithstanding my instructions, dividends were not reinvested. One thing I didn’t take note of was the failure of my online broker to execute my instructions. I should have checked and double-checked, but I didn’t.

Online brokers, in my opinion, are sloppy. The people answering the phone are poorly trained and often cannot handle technical matters. Sometimes, if I call a few times asking the same question, I get three different answers. The other maddening part of all this is the refusal to put things in writing. It’s clear to me what the reason is, but I’m not going there.

Be careful. Take notes. Note the time. Double-check everything they tell you. Double-check that instructions have been followed. Take nothing for granted and assume that if something goes wrong, they will take no responsibility for it.

#direct inveting #investing #managing your money #online brokers