HERE IS AN ARTICLE I WROTE OVER A YEAR AGO, BUT FOR SOME REASON NEVER PUBLISHED. (UNTIL NOW, OBVIOUSLY.)
One of the benefits of becoming more experienced in the investing game is that it usually leads to higher balances. My user account recently passed the threshold to where I am now a silver-level member of the 5-Star program at InvestorLine. With this new status, I have been given access to Level II Quotes and a few other perks. I will be breathing this rarefied air at least until next quarter, when my standing will be re-evaluated. Acquiring access to Level II Quotes, I have to say, is a goal I have had my eyes on for quite some time. Apart from the cachet of having attained the balance required for acceptance into this ever-so-exclusive club and the Level II Quotes, what perks do I get for passing muster, and how beneficial are they?
Apart from the Level II Quotes, there are three principal benefits:
My work is not particularly reliable, and does not pay as well as it should. I want to be able to provide a better life for my family than I currently can.
Instead of complaining (although I do some of that too) I decided to try to look for some alternative sources of income.
This blog is one such endeavour. By my reckoning, if things continue as they are, I should be able to cover the costs involved with writing this blog by about 2050. That’s not a typo; I really don’t make much money with this blog, but it gives me a reason and venue to focus on finances, so that is enough of a benefit for me. But that’s not actually the biggest benefit I derived from starting Loonie Lover.
I used to think this way, however I don’t think it’s realistic to live off dividends and never touch your capital in retirement. First of all, any RRSP savings will eventually be converted into an RRIF and face stiff withdrawal rates. Second, what if you want (or need) excess capital in one year to pay for a car, new roof, large vacation, etc.? You’d probably look to sell off some stock to access the capital. Finally, there’s the potential to work longer than needed in order to reach a target dividend income stream. It’d take a million dollars in capital to spin off $35,000 to $40,000 in dividends. Why wouldn’t you want to tap into that million dollars?