Reviews

We review books that deal with everything from financial independence topics to politics, and anything in between. We may sometimes stray into films and music if there is a “Findependence” angle.

The Greatest Prospector in the World

Posted By Jonathan Chevreau | December 27, 2015

The Greatest Prospector in the World is the title of a new work of “Business Fiction” focusing on the six “secrets” of sales prospecting success. The author is Ken Dunn, CEO and Founder of Las Vegas based Next Century Publishing.

The six secrets are slowly revealed over the course of a charming tale that begins in the year 1910, a story Dunn describes in the book’s subtitle as “A Historically Accurate Parable on Creating Success in Sales, Business, & Life.”

For those who wish to skip on to the six secrets, they are laid out in the short Afterword, in which Dunn acknowledges a literary debt to Jim Stovall’s Ultimate Life Series and Og Mandino’s classic The Greatest Salesman in the World.

Dunn himself is no slouch in the world of sales prospecting: after an early career in police work he started businesses in property management, finance, direct sales and publishing.

You can find more at the book’s web site, www.greatestprospector.com. Also check out Dunn’s recently launched ReadersLegacy.com, which is a kind of Facebook for book lovers. In an interview in his Toronto offices, Dunn described Reader’s Legacy as “Facebook meets Amazon.” The site even features a kind of literary currency called “Lit Coins,” (reminiscent of Bit Coins).

wv821wSp_400x400 — Kenn Dunn (Twitter.com)

The 6 secrets of Sales Prospecting

I’ll reveal the titles of the secrets but you really need to read the story to get the context. As the cover image shows, it’s all about prospecting for gold nuggets.

Here are the six secrets:

1.) Dress for the Weather

2.) Know what you’re looking for

3.) Use the right tools

4.) Get in the River, Even when you don’t want to

5.) Make it Fun

6.) Work Hard for Six Days, Rest for One

David Trahair’s contrarian stance: Be a loaner, not an owner

Posted By Jonathan Chevreau | December 4, 2015

By Jonathan Chevreau

Financial Independence Hub

In this summer’s series on the 7 eternal truths of personal finance, one of the articles was entitled Be an Owner, Not a Loaner, which reflects the usual financial industry advice that stocks are more likely to generate long-term investment returns than cash or bonds.

There is of course a contrary view to this eternal truth and it’s best contained in the new second edition of David Trahair’s book, Enough Bull, originally published early in 2009, right at the bottom of the financial crisis..

Trahair, a chartered accountant and author, could as easily have titled his book Be a Loaner, Not an Owner, because he’s adamant that stocks (i.e. equities), whether individual or pooled through mutual funds or ETFs, are just too risky for the average person.

The book cover includes a small image of a bull (as in a steer), so clearly the title Enough Bull is a double entendre: as in no more bullish prognostications on the stock market, as well as no more bovine excrement, whether dispensed by the animals or financial advisors.

Skeptical about the financial industry and its central belief in stocks Continue Reading…

Weekly Wrap: “Heightened uncertainties” from the Fed, hedging risk, bear books

Posted By Jonathan Chevreau | September 19, 2015

I have just returned from a two-week trip to Hong Kong and Taiwan, just in time for the Federal Reserve’s long-awaited decision to delay the first rate hike since the financial crisis.

The key phrase “Heightened uncertainties abroad,” spoke as loudly as the lack of action, as Fed chairwoman Janet Yellen noted the risks of both China and Emerging Markets in generally spilling over into the United States.

Hedging in the Retirement Risk Zone

For those of us who are in the “Retirement Risk Zone,” — including Yours Truly — the caution behind the Fed’s decision could suggest that for some it may be appropriate to dial down portfolio risks. Since late August, I have followed my personal financial adviser’s recommendation to remain invested but to hedge back one third of US and Canadian equity exposure.

Generally, at whatever age, it makes little sense to take more risk than you need to take and the Fed’s decision (or non-decision) underlines that there are still extensive risks out there, certainly in the equity markets as well as fixed income. Fred Kirby, a fee-for-service planner at Dimensional Investment Planning, says it’s time to be cautious and protect profits. As I quoted him earlier this year, he suggests that those who are averse to market timing can consider the newer “low-volatility” ETFs. For Canadian exposure, he suggests the BMO Low Volatility Canadian Equity ETF (ZLB), which holds 40 stocks deemed to have the lowest risk. For U.S. stocks he likes the BMO Low Volatility US Equity ETF (ZLU), which uses the same methodology and holds 100 companies. For international equities, Kirby likes the iShares MSCI EAFE Minimum Volatility Index ETF (XMI). (There’s also an iShares low-vol ETF for Emerging Markets).

“These ETFs automatically position the cautious investor for any additional future gains without having to make a market-timing re-entry decision,” Kirby says. “This could be just the sort of compromise that lets some investors stick with their investment plans even when they do not want to.”

Actively Managed ETFs

On the same subject (ETFs), my latest Financial Post ETF column ran earlier this week, tackling actively managed ETFs. See Why Fund Investors Should Get Active with their ETFs.

Bear books revisited

How to Choose a Retirement Location

Posted By Financial Independence Hub | September 5, 2015

By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

So you and your spouse have decided to retire. At some point in your retirement planning you must ask yourself where you would like to spend your Golden Years. The following questions and insights should place you on the right path for finding just the location that suits your needs.

First things first

The first question you must ask yourselves is whether you want to stay in the home in which you are currently living or would like to move elsewhere. Retirement is a big step and sometimes people feel more secure staying in familiar surroundings because it makes the transition to your new lifestyle smoother.

Others, for financial reasons, a change of pace, health reasons, or for better weather, want to relocate. In this case, the next decision you must make is whether you want to stay in your home country or move overseas.

If you want to stay in your home country you must then decide what sort of climate is most attractive to you. Do you want to experience the four seasons or have a more moderate, year-round climate? Do you like mountains or beaches? What size of city or town do you most enjoy? These questions are important because they will automatically exclude places you won’t need to research. Knowing what you prefer in climate, city size and geographical configuration carries much weight in terms of your happiness quotient.

Another thing to consider is that if you choose a town or small city, are there adequate medical facilities nearby? Larger cities tend to have a full range of medical care. Smaller towns generally have clinics and a variety of doctor’s offices, but perhaps not the equipment needed for complex medical situations.

Narrowing your search

A Simple Way To Boost Your Retirement Savings

Posted By Robb Engen | September 3, 2015

By Robb Engen, Boomer & Echo

Special to the Financial Independence Hub

One of the core tenets of financial planning is to pay yourself first. Automating your savings is a painless way to save for retirement and, in all likelihood, you’ll barely notice that you’re living on less.

Most experts suggest putting away 10 per cent of your income for retirement, but that number might seem out of reach for many people today. The key to developing good savings habits, however, is that you need to start somewhere.

That’s why I suggest setting aside what you can afford, be it three or five per cent of your income, and try to increase that amount every year.

Small changes lead to big improvements