A couple of days ago new reader Samuck asked me why I bother with individual stocks when my ETFs seemed to be performing so much better, which you can clearly see in my latest net worth update. Although I’ve discussed my preference for dividend growth stocks in the past, I feel like his question touches opon a another point that’s often brought up: do I benchmark my dividend growth portfolio to an index and, if so, why?
A question I’m often asked by readers is why I keep such a high amount of cash savings on the side. Isn’t it better to deploy all my available cash and enjoy the market ride up while also pushing my dividend income higher? While my answer generally would be yes, the situation isn’t always so simple. As someone looking to reach financial freedom should you hold on to large pockets of idle cash?
A couple of days ago I found myself in a pharmacy for the first time in a while. This pharmacy, like every other drugstore, was one of those really bright and sparkling white stores where someone with a big-faced grin showing even whiter teeth sells you all sorts of medication. Nobody really likes going there, yet we’re always eager to get our hands on what they’re selling. That is when it hit me: pharmaceuticals are awesome.
Last week I was contacted by a spokesperson of my personal bank because she wanted to explain a bunch of new services they had on offer. Even though I usually am weary when someone seeks me out to promote a service, I reluctantly agreed to stop by. Who knows what they had in store that could accelerate my journey towards financial independence?
Last week reader Mustachian Post sparked an interesting discussion on exchange rate fluctuations in the comments of an article on the different foreign withholding tax regimes in a number of European and North-American countries. Because exchange rates, together with foreign withholding taxes, form one of the bigger head-scratchers to international investors, I wanted to devote a post to the topic. Do we need to hedge against exchange rate fluctuations or not?