Short Takes: New Vanguard ETFs, Tied-Selling, and more

Here are my posts for the past two weeks:

The Incredible Shrinking Alpha

I’m Done with RRSPs

Your Complete Guide to Factor-Based Investing

Here are some short takes and some weekend reading:

Rob Carrick reports on new ETFs from Vanguard that contain both bonds and global stocks.

Big Cajun Man explains the regulations against tied selling by banks. They apply to such things as requiring you to get a chequing account with a bank in order to get a mortgage.

Robb Engen at Boomer and Echo discusses using annuities to create your own pension income. He says “I perked up when I saw the payout rates were between 5 and 7 percent of the initial deposit. Now, keep in mind, those rates won’t increase with inflation each year, but it’s still a healthy (and guaranteed) amount to receive for life. … why wouldn’t a relatively healthy 70-year-old male not want to turn $250,000 into annual income of $17,669.89?” He’s downplaying the devastating effects of inflation over many years. I’ve watched older family members struggle to get by as the buying power of unindexed pensions erode. People should really be looking at annuities with increasing payouts to counter the effects of inflation. The starting payouts are lower, but this gives a better idea of the annuity’s actual returns.

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