Money A TFSA that’s growing like a weed

23:51  19 may  2017
23:51  19 may  2017 Source:   moneysense.ca

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After those first two years when his money sat dormant in his TFSA , Stiver-Balla was ready to do his own stock picking. More of Me and my TFSA ». One sector he does like is medical marijuana. “They have a high growth rate and they’re not meeting demand, so they’re growing .

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Me and my TFSA © Used with permission of / © Rogers Media Inc. 2017. Me and my TFSA

Stella & Mat Stiver-Balla

AGE: 28 and 32

PLACE: Toronto

TFSA TOTAL: $77,210

STRATEGY: Growth and blue-chip stocks

Me and my TFSA

Four years ago was an important time for Mat Stiver-Balla. In 2013 he married his wife Stella, 28, and he began investing in his TFSA.

Like most young investors, Stiver-Balla started his TFSA without really knowing much about investing. The money sat in cash in his account for the first two years until his dad, a mortgage broker, started giving him a few pointers on what to do with the account. That was the push Stiver-Bella need to start following the stock markets in newspapers and magazines. “I started teaching myself how to read balance sheets and I started picking stocks based on what numbers I thought looked good,” says Stiver-Balla. It was enough to make him more comfortable with stocks and investing.

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: a weedy growth of plants. Seen and Heard. What made you want to look up grow like a weed ? Please tell us where you read or heard it (including the quote, if possible).

Me: Well, do you have a TFSA ? Friend: Yes (in a proud voice). Me: That ’ s great, you’re ahead of the game. What are you investing in? A TFSA allows you to buy equities like stocks, mutual funds, GICs, bonds and of course ETFs so your money can grow tax - free .

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He credits MoneySense with his ability to read a balance sheet—especially when it came to understanding key stock metrics and ratios like price-to-earning and price-to-book ratios. Another resource that helped him was Morningstar, an investment research firm that compiles and analyzes mutual fund, stock, and general market data.

After those first two years when his money sat dormant in his TFSA, Stiver-Balla was ready to do his own stock picking. The first stock he bought: Encana Corp. “It had a solid board of directors, a low P/E ratio and at the time, energy stocks looked like a value buy,” says Stiver-Balla. He bought 1,000 shares at $9.10 each and they’ve done very well for him. In fact, the shares are up more than 60% in those two years.

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Like any self-respecting teenager, Michelle decided that a big hat would be last thing found on her head. Her mother resurrected her lecture series on After she convinced Amy and Tina that she had stopped growing , that she was fine and that she didn't want to see a doctor, her friends had

( grow like a weed (или like weeds )). расти быстро, буйно (как сорняк). growing like a weed too, and it seems only yesterday since he was toddling. 2. any undesirable or troublesome plant, esp. one that grows profusely… …

Today, Stiver-Balla’s portfolio touches several different sectors, but with a greater emphasis on the financials and energy sector. Still, he makes a point of steering clear of telecom stocks and tech stocks. Stiver-Balla feels there is too much volatility and regulatory risk in sectors right now. “I just think these sectors will be very challenging to make any money at in the future,” he says.

More of  Me and my TFSA »

One sector he does like is medical marijuana. In fact, Stiver-Balla was drawn to the growth potential of Canopy Growth, (formerly Tweed Marijuana Inc.), a large medical marijuana company. “They have a high growth rate and their not meeting demand, so they’re growing. I hope this bet will pay off when legalization of marijuana comes in July,” he says.

Stiver-Balla also invests his wife Stella’s TFSA, which also totals about $75,000. But Stella, a teacher, prefers a passive approach to her portfolio, choosing to invest in low-cost exchange-traded funds (ETFs). “Stella has a defined benefit pension plan but her portfolio is invested in 100% equities in low-cost ETFs,” says Stiver-Balla.” In fact, her portfolio is invested in all Vanguard ETFs, broken down 30% in an international ETF, 30% in a U.S. ETF, and the remaining 40% in a Canadian ETF.

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Before I go into some of the growth prospects that Aurora has, it is imperative to understand how fast the company is growing their sales and number of registered patients. At the end of the first quarter in 2017, Aurora had 8,200 registered patients.

The TFSA is like a basket that you put investments into. (GIC’ s , High Interest Savings Accounts , stocks, bonds etc.) I think that scenario grows increasingly likely every year and why I too favour the TFSA . For example, it’ s not a given that tobacco companies getting into the weed market will buoy

What’s the couple’s long-term plan with their TFSAs? Stiver-Balla says the couple, who plans to have a child in a couple of years, will dip into the money at that time if they need it to pay for expenses and child care, but he hopes not to have to dip into it too much. “I believe TFSAs are the best way to build generational wealth and I plan to keep adding to them every year that I can to build our family’s wealth,” he says. “That’s the long-term plan.”

Pro tip

Divert some energy to international stocks

Jon Parry, an investment manager and financial planner with Ironshield Financial Planning in Toronto likes that Mat isn’t afraid to invest in individual stocks and has done his own research. But his one piece of advice: easy up on the energy stocks.  “Mat has a lot of energy holdings, especially Encana shares,” says Parry. “I would suggest he take some of his profits off the table on that stock and add a tech or real estate holding to his portfolio.”

Another potential issue with Mat’s portfolio is that almost all of his holdings are Canadian equities. Given Canadian equities account for just 4% of the international market Parry would like him to diversify by adding some exposure to international growth stocks. “All Canadian investors should look at diversifying internationally. You really can’t get much exposure to the healthcare or tech in a meaningful way by holding only Canadian stocks.”

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When I first started growing weed , I was completely overwhelmed by all the elaborate tutorials about growing Everything seemed so complicated. Maybe you know what that ' s like .

Growing like a weed . Mon, 23/06/2008. There are the more obvious signs – like frequent trips to the store to buy new clothes – that our kids grow like weeds . K-Man, for example, sorta skipped his 3-T phase and jumped straight into 4-T.

His suggestion: add a small percentage of a U.S. small- or mid-cap ETF in the tech sector to his holdings. “There’s many competitive products out there that he can choose from,” says Parry. “Perhaps a Vanguard ETF could work for him since his wife already holds some ETFs from that fund family and they seem comfortable with it.”

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Canadians aren't saving as they once did and collectively are holding record high levels of debt. These concerns have been on the radar for some time, consistently flagged by the Bank of Canada. The average household savings rate in Canada has dropped from about 20 per cent in the 1980s, to 5.8 per cent in the fourth quarter of 2016.In a recent Facebook Live with personal finance expert Rubina Ahmed-Haq, CBC viewers posed questions about saving and controlling debt.Does tracking spending in a budget help?A big part of being able to save is stopping yourself from spending all the money you make.

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