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Comprehensive Finance Book List

Sorry for the long hiatus! Summer is a hard time of year to motivate myself to write as there is always something to do. I’ve had a great time with family and have enjoyed my summer reading as always. My writing sabbatical made me think a book list might be helpful for those wanting to increase their financial knowledge. There are tons of finance books out there and this list is by no means exhaustive. I have personally read everything

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Investing Basics Stocks – Categories, Capital Structure and Theory Behind Outperformance

This is a continuation of the last post discussing basic financial principles as it applies to individual stocks. Read Part 1 first if you haven’t already There are many ways to describe a stock/business, but the 3 major categories are: the market cap size, the sector and geographic location. Market Capitalization Market cap size refers to the overall quoted value of the stock. Market Cap = the stock’s trading price X the total number of outstanding shares of the company.

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Investing Basics – What is A Stock and What Happens to Profits?

My last post talked about deciding upon a 100% stock allocation as I was starting out on our investment journey. I failed to mention that before making this bold decision, I spent an enormous amount of time reading about stocks, profits and their valuation principles. It seems a bit daunting to try and learn investment concepts when you are starting from square one. I decided it was probably best to learn it in a similar fashion to medicine, which meant

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Basic Asset Allocation and Risk Tolerance (cont’d) – My Road To Financial Independence Series

This  post  completes the discussion of risk tolerance and is the 3rd post in a multi-post series walking through all the key financial decisions that led to financial independence in our 30’s. Make sure you read them in order as each post builds on the last.  Don’t Fight Your Emotional Self – Find Coping Mechanisms Based upon my tolerance for volatility in poker and my strong belief in Stocks for the Long Run, I was ready to start our investment portfolio

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Basic Asset Allocation and Risk Tolerance – My Road To Financial Independence Series

This is the 2nd post in a multi-post series walking through all the key financial decisions that led to financial independence in our 30’s along with a few mistakes along the way! Make sure you read them in order as each post builds on the last. As discussed in the first post, I spent a substantial part of my 2nd year medical residency working out my fundamental investment belief system before investing a single dollar. I poured over financially blog

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Understanding Stock Market Risk – My Road to Financial Independence Series

  Life has been a bit of a whirlwind recently. As I mentioned previously, our family had our 3rd child in November which coincidentally was the time of my last post! I failed to mention we also moved into a new house and then had plenty of family and friends visiting as well. We knew this was going to be our last child, so I have really tried to take as much quality time with our little boy as possible

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Understanding Corporate Investment Tax Part 2 – Refundable Dividend Tax On Hand (RDTOH) and Taxation of Dividends and Interest Income in a CCPC

This is the second post in the investment tax series – reading the first post here is essential to understand the next step of discussing the most complicated mechanism in the corporate investment tax structure, the RDTOH. The goal of this blog is to make investment concepts easier to understand by using basic explanations. The RDTOH is the toughest one yet to explain but I will try my best. I have found proper understanding of this post has taken a

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Understanding Corporate Investment Income Tax Part 1 –  Capital Gains and the Capital Dividend Account

  Apologies for the long hiatus. I felt hesitant to write any further advice since the corporate tax change proposals have created a climate of uncertainty. While the uncertainty will persist for a while longer, the last announcement found here talks specifically about corporate passive investment income with a threshold of $50,000/year before more onerous taxation kicks in. As I scrambled to review my corporate holdings to see if I currently exceed the threshold, I realized investment income tax treatment

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Incorporation Basics Part 3 – Income Smoothing and Proposed Tax Changes

I’ve given up trying to find pictures for such dry topics like incorporation so I figured I’d go with my science nerd side instead 🙂 Another key advantage of a personal corporation is the ability to control when you take personal income.  Deferring personal taxation via retained earnings in a CCPC typically works best when combined with investing these retained earnings to allow compound interest for many years and then draw those funds out in retirement at lower personal tax

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