Change in value of 29 select financial firms over the past 12 months.
Excerpted from Michael Berry’s morning notes.
We personally have lost some money on paper, but have also invested in the past week while things have been “on sale”, in preparation for the launch of the Tax-Free Savings Account (TFSA) on 1-Jan-08. Don’t wait until the end of 2009 to start your money working for you tax-free, plan to max your TFSA right away! Our plan is to max our TFSA at the start of each year ($5k per person), and buy a basket of medium-risk stocks or income trusts spread between a few sectors (real estate, power generation, oil, financial) that pay out reasonable yield (>5%, preferrably >10%), and a) long-term collect tax-free income, but b) short-term use dividend re-investment (DRIP) to purchase additional shares each month/quarter to compound our returns until we are ready (or need) to switch them over to generating cash. In 5 years, assuming no more than one or two of them crater, they could be throwing off quite a bit of cash!
Now if only they would introduce income splitting for people younger than 65 …