HowToInvestOnline Guide to Self-Directed Investing

This month marks the 6th anniversary of our blog. Many of the posts we have published have enduring value, as statistics on accumulating reader visits on old posts demonstrate. But there are now so many posts - 299 in all - that it has become difficult to track old ones down. To help readers find their way around, we have now selected, organized and categorized posts into the key investing topics. We've ignored some of our posts, topical at the time, which have become outdated.

To further help readers wanting a faster track, we have highlighted in green an "essentials" list of 39 poststhat cover the basics, a kind of Investing 101, which we believe every self-directed investor should know to successfully build and manage a portfolio.

1. Why Be a DIY Investor and What Does It Take to Succeed?

1) Setting Objectives

2. A Process to Build a Sound Investing Plan
3. Setting Investment Objectives
4. Reviewing Your Financial Assets
5. Investment Building Blocks - Securities
6. Investing Principles - Minding the Immutable Forces
7. A Written Investment Policy, Don't Invest a Cent Without It
8. Investing for Children: Getting the Goal and Timing Right for Education

2) Getting the Thinking & Decision-Making Right

9. Psychology of Stock Market Investing: Patience
10. Five Common Investor Judgement Errors and How to Counter Them
11. How to Fix Overconfidence, the Worst Investing Attitude Problem
12. Exploiting Laziness, Procrastination and Conformity in Investing
13. Controlling Your Own Investing Over-Confidence
14. Coping with an Uncertain Investment Time Horizon

3) Setting Expectations Grounded in Reality

15. Investing Lessons from a Golf Game
16. How to Spot and Avoid Investing Scams
17. Is Putting Money into the Stock Market Just Gambling?
18. What Long Term Return Can We Expect from the TSX?
19. The TSX and How Blue Chip Stocks Have Done: Food for Thought
20. TSX Composite and S&P 500 Total Market Return
21. Investing History Lessons on Inflation Protection and Market Mood Swings
22. Test Your Portfolio with Historical Investing Returns
23. Gulp! Asset Allocation & Rebalancing Theory Meet a Scary Real World
24. The 2008 Crash - Case Study in Diversification
25. Deflation, Inflation - Which is coming and What to do?
26. Investing During Deflation
27. The Historical Effect of Inflation and Currency on a Canadian Investor's International Portfolio

4) Risk

28. Investing Big Stuff vs Small Stuff
29. Risk: What Can You Afford and What Can You Put Up With?
30. Protection for the Online Investor Against Insolvencies and Defaults
31. Risk Tolerance: Why and how to measure your own
32. Risk Capacity: What is your capacity and does it match your tolerance?
33. Risk Need - Figuring out how much risk you need to take
34. Investing Risk: What is there to lose?
35. Investing Risk: Historical Worst Volatility, Business Cycles, Crashes and Crises
36. Investing in a Recession and Avoiding Depression
37. Investing Risk: How Badly did Inflation and Currency Hurt Past Returns?
38. Investments to Protect against Inflation
39. Deflation, Inflation - Which is coming and What to do?
40. Investing Risk: Default or, How often do investments go belly up?
41. Seeking Safety: Assessing Default Risk
42. Investing Risk: The Ouch from Management Costs and Taxes
43. Investing Risk: The Harmful Effect of Rising Required Rate of Return
44. What are the important long term investing risks? (Volatility is NOT one of them)
45. Are Stocks less, or more, risky in the long run?
46. ETF Risks - Which Matter, Which Don't, What to Do

5) RRSP, TFSA, RESP, In-Trust vs Taxable Accounts

47. RRSP vs TFSA vs RESP vs Non-Registered Taxable Account?
48. RRSP vs TFSA? First, the Numbers
49. RRSP vs TFSA? Critical Differences and Imponderables
50. Cash in a TFSA or RRSP - What are the best choices?
51. Save Tax by Income Splitting with RRSP, TFSA, Loans and Pension Income
52. Investing for Children: RESP or In-Trust For Account?

6) Asset Allocation and Portfolio Construction

53. Asset Allocation: the Most Important Investing Decision You Will Make
54. How to Diversify without "Diworsifying"
55. How Many Stocks to Create a Diversified Portfolio, or Should You Even Try?
56. Five Reasons to Go Beyond the One-Stop-Shopping Portfolio
57. Portfolio Rebalancing - What, Why and How
58. Dollar Cost Averaging - the Good Truth and the Bad Myth
59. Investing Implications of a Globalized World
60. Investing Ideas from Norway, Home of a Humongous Pension Fund
61. Surprise! Equities can Outdo Bonds for Cash Distribution Attractiveness
62. The Crucial Difference between Price and Income Stability of Equities
63. Investing for Children: Building a Portfolio from Scratch with Regular Small Savings
64. Foreign Investments: To Hedge or Not to Hedge Currency
65. Foreign Investments: What does history tell us about hedging currency?
66. Hedging Foreign Currency Exposure - Is it worth it? CalPERS Changes Tack and ETF Case Studies
67. A Falling Canadian Dollar Can be An Investor's Friend
68. Building Your Own Index ETF
69. Low Volatility Equity ETFs - Promising Safety and Reward
70. Portfolio Volatility of Swensen Seven, Smart Beta vs Simple Recipe - Which is best?
71. How to Minimize Portfolio Volatility and Sleep (a lot) Better
72. Mortgage/Debt-Adjusted Asset Allocation
73. Tax-Adjusted Asset Allocation
74. How to Assess Your Annual Portfolio Performance
75. Using Indices to Benchmark Your Investment Results
76. The Annual Investment Review: Part 1 - Review Goals & Performance, Rebalance
77. The Annual Investment Review: Part 2 - Tax Matters

7) Model Portfolios

78. One-Stop-Investing for Your RRSP Contribution(s)
79. Five Reasons to Go Beyond the One-Stop-Shopping Portfolio
80. Simple Portfolios Compared
81. New Improved Model Portfolio: The Smart Beta
82. A Model Pre-Retirement Portfolio for Canadians - The Swensen Seven
83. Portfolio Volatility of Swensen Seven, Smart Beta vs Simple Recipe - Which is best?
84. The Permanent Portfolio: Pros and Cons for Canadian Savers and Retirees
85. Inside the Permanent Portfolio - Why it succeeded and the chances it will continue

8) Portfolio Components – the Actual Securities to Buy and Sell

a) ETFs

86. ETF Screeners Compared
87. A Compendium of ETF Resources
88. ETF Risks - Which Matter, Which Don't, What to Do
89. Canadian Large Cap Equity Index ETFs Update - Surprises for Investors
90. Return of Capital: Separating the Good from the Bad
91. Canadian ETFs with High After-Tax Cash Yields - Separating the Good from the Not so Good
92. How does RBC's new Canadian Dividend ETF compare?
93. ETF Comparison: USA S&P 500 or Similar Equity Index Funds
94. ETF Comparison: Developed Country Diversified Equities
95. Emerging Markets ETFs Comparison Update - Which is best?
96. Surprise! Equities can Outdo Bonds for Cash Distribution Attractiveness
97. Canadian Equity Low Volatility vs Cap-Weight ETFs Reviewed
98. Choosing Between US and International Equity Low Volatility vs Cap-Weight ETFs
99. Best Pick Commodity ETFs/ETNs for the Canadian Long Term Investor
100. Commodity ETFs - Ins and Outs for Canadians
101. Investing in Utilities - Individual Stocks vs Funds
102. Socially Responsible Investing: Trends and ETF Track Records
103. Vanguard Index Change and Navigating The ETF Maze for Global Equities
104. Pros and Cons of Cross-Border Shopping in the USA for ETFs
105. Cross-Border ETFs - Here's a Free Tool to Compare Costs
106. S&P 500 Currency Hedged ETFs - How Well do They Work and Which is the Best?
107. Different and Better(?) Ways to Invest in the Broad US Equity Market
108. New iShares Preferred Share ETF - How Does It Compare?
109. Pros and Cons of Managed Futures ETFs
110. Building Your Own Index ETF
111. How to Sharpe-n Your ETF Selection Process
112. ETFs and Mutual Funds - Calculating Capital Gains

b) Canadian Stocks

113. What Long Term Return Can We Expect from the TSX?
114. Canadian Aerospace, Waste Management and Engineering Companies - Sustainability, Social, Environmental and Governance Ratings
115. Canadian Transportation Companies - Sustainability, Social, Environmental and Governance Ratings
116. Canadian Mining Companies - How do they rate on Sustainability, Environmental, Social and Governance issues?
117. Canadian Oil & Gas Stocks - Does better Corporate Sustainability & ESG mean better performance?
118. Corporate Sustainability (aka SRI/ESG) in Canadian Consumer Stocks
119. Twelve Ultimate Buy and Hold Canadian Stocks
120. Bank Stocks: Alternative Ways to Invest
121. Electric Power Utility Stocks for the Income Investor?
122. Entertainment Companies: Potential Investment Thrills or Spills?
123. Investing in Utilities - Individual Stocks vs Funds
124. Dual Class Shares - Are they Ok or to be Avoided?
125. Dividend Stock Olympics - The 15 Canadian Medalists (Feb 2014)
126. Canadian Equity Market Darlings and Dogs: February 2014 Update
127. Canadian CEO Pay Update: Who earned their pay by rewarding investors?
128. Top-100 Canadian CEOs Update: Who is the Most Over-Paid?
129. The TSX Composite - Which are the real blue chips? (Sep 2013)
130. Update on High-Yielding Canadian Mortgage Companies: New Entrants & Rising Interest Rate Effects (Aug 2013)
131. Dividend ETFs and Stocks - Attractive Cash Distributions and Returns
132. Going on Autopilot with Dividend Reinvestment
133. Investing in Illiquidity - Where the small guy has an advantage
134. Using the "Wisdom of Crowds" of Analysts to Find Safe, Profitable Canadian Stocks

c) Preferred Shares, Split Shares and Closed-End Funds

135. Preferred Shares: an Opportunity for Taxable Accounts
136. Dividend Income from High Quality Preferreds: Split Shares, Companies and ETFs Compared
137. Split Share Preferreds - Opportunity from an Outlier?
138. Split-Share Corporations - Christmas Bargains Amongst Capital Shares?
139. New iShares Preferred Share ETF - How Does It Compare?
140. Closed-End Funds - Opportunity vs Risk

d) Real Estate Investment Trusts (REITs)

141. Real Estate Investment Trusts for Income and Diversification
142. Return of Capital: Separating the Good from the Bad
143. Green Certification of Real Estate - Why investors should care
144. What's up, or should we say down, with REITs?

e) Preferred Shares

145. Preferred Shares with High-Yield, Safety and Fixed Maturity

f) Convertible Debentures

146. Convertible Debentures: the Certs mint of investments

g) Fixed Income – Cash, Bonds, GICs

147. Cash in a TFSA or RRSP - What are the best choices?
148. Tools and Tips for Picking the Highest Rate GIC
149. Fixed Income: Which is "best" - GIC, Individual Bonds, Target Maturity ETF or Traditional ETF?
150. Tax-efficient Fixed Income for Non-registered Taxable Accounts
151. Bond Ladder vs a Bond Fund? Part1: Ladder Pluses
152. Bond Ladder vs Bond Fund? Part 2 - Fund Pluses
153. Which Way is Best to Invest in Real Return Bonds - Direct, ETF or Mutual Fund?
154. Green Bonds - The Fixed Income Way to Invest by ESG/SRI Principles
155. Fixed Income - the best rates in Canada across the maturity spectrum
156. What Happens to a Bond ETF When Interest Rates Rise?
157. Which Bond ETFs are Most Vulnerable to a Rise in Interest Rates?
158. Surprise! Equities can Outdo Bonds for Cash Distribution Attractiveness
159. Ways to Get Steady Dependable Income from Mortgages
160. High Yield Bonds - Take a Chance on Them?
161. Ins and Outs of International Bonds

h) Commodities

162. Commodities: Diversifier and Inflation Hedge or Empty Promise?
163. Best Pick Commodity ETFs/ETNs for the Canadian Long Term Investor
164. Commodity ETFs - Ins and Outs for Canadians
165. Gold: the Why, What and How of Investing in It
166. Gold Bullion Investing Online: How the alternatives compare

i) Alternative & Fringe Assets

167. Holiday cheer alternative - Investing in wine and whisky

9) Taxes

168. Taxes 2014: Compendium of Links & Resources for Filing 2013 Income Tax
169. Five Last Minute Tax Reducers for Investors
170. How Your Province, Income Level and Investment Choices Affect Your Income Tax
171. How to Calculate Capital Gains and Other Income Taxes on ETFs
172. ETFs and Mutual Funds - Calculating Capital Gains
173. How to Calculate Interest and Capital Gains for Tax on Bonds, T-Bills, GICs, CSBs
174. The Mystery of Fund Capital Gains in 2008 Explained
175. Light at the end of the ACB Tracking Tunnel for ETFs?
176. Taxes on Foreign Investments
177. Foreign Income & Assets - Avoid Nasty T1135 Trouble
178. How to Avoid the Misery of T1135 Foreign Holdings Disclosure
179. Save Tax by Income Splitting with RRSP, TFSA, Loans and Pension Income
180. Five Tax Tips for Investor Couples and Families
181. Tax-efficient Fixed Income for Non-registered Taxable Accounts
182. Tax Planning for Investors in or near Retirement: Age Credits and OAS Clawbacks
183. Saving Taxes on Investments at Death
184. Tax Loss Selling Explained: What, Why and How
185. Tax-Adjusted Asset Allocation
186. Income Tax on Dividends: How to Cope with the Myths and the Realities

10) Retirement

187. Three Key Investing Principles for Retirees
188. Lessons for Investors from Warren Buffett's Illness (Apr 2012)
189. What is a Viable Mix for Retirement Savings Success?
190. Adjusting RRIFs and RRSPs to the New Reality
191. How to Invest for Retirement Like a Pension Fund by Using ETFs
192. Two Ways of Generating Cash from a Portfolio
193. Generating Cash: Income from Securities with the High-Yield Couch Portfolio
194. Generating Cash: Asset Allocation with the Global Couch Potato Portfolio
195. A Sustainable Portfolio Withdrawal Rate: the 4% Solution
196. Why Retirees Need to be More Concerned about Portfolio Volatility
197. The Retired Investor - Real Return Bonds for Essential Living Expenses
198. Tax Planning for Investors in or near Retirement: Age Credits and OAS Clawbacks
199. Saving Taxes on Investments at Death

11) Sustainable Investing – Incorporating Environmental, Social & Governance Factors

200. Socially Responsible Investing - Putting Your Money Where Your Morals Are
201. Green Investing - Doing Right and Doing it Right
202. Socially Responsible Investing: Trends and ETF Track Records
203. Stocks & Board Governance - Do the Good Guys Finish First or Last?
204. Women on Boards of Directors in Canada - Should Investors Care?
205. CleanTech & Profitable Investment - Yes, the Two Can Go Together
206. Canadian Aerospace, Waste Management and Engineering Companies - Sustainability, Social, Environmental and Governance Ratings
207. Canadian Transportation Companies - Sustainability, Social, Environmental and Governance Ratings
208. Canadian Mining Companies - How do they rate on Sustainability, Environmental, Social and Governance issues?
209. Canadian Oil & Gas Stocks - Does better Corporate Sustainability & ESG mean better performance?
210. Corporate Sustainability (aka SRI/ESG) in Canadian Consumer Stocks

12) Tactical Investing – Looking for Market Bargains

211. IPOs: Avoiding the Dangers and Spotting the Opportunities
212. Twelve Tricks in Financial Statements and How to Detect Them
213. Financial Statement Manipulation and Fraud: A Dirty Dozen Warning Signs
214. Insider Trading: Using It to Get an Edge, Legally of Course
215. Getting Started in Value Investing
216. Taking Advantage of Value Stocks
217. "Small is Beautiful" - Also True for Investing
218. P/E and PEG Ratios - Remember the Effect of Interest Rates
219. Stock Market Analyst Forecasts: add Salt and Pepper
220. Stocks & Board Governance - Do the Good Guys Finish First or Last?
221. Investment Climate Change: The Mysterious Case of Hot January Returns
222. Using Weak Currencies to Find Foreign Equity Investment Opportunity (Jan 2013)
223. Picking Countries with a Weak Currency - How did it perform? (Mar 2014)
224. Using the "Wisdom of Crowds" of Analysts to Find Safe, Profitable Canadian Stocks (Dec 2012)
225. Dividend Initiators as a Stock Selection Concept
226. Share Repurchases vs Cash Dividends - Ins and Outs
227. Women on Boards of Directors in Canada - Should Investors Care?
228. Canadian ETFs with High After-Tax Cash Yields - Separating the Good from the Not so Good (Mar 2014)
229. Canadian Equity Market Darlings and Dogs: February 2014 Update
230. Canadian CEO Pay Update: Who earned their pay by rewarding investors? (Jan 2014)
231. Dividend Stock Olympics - The 15 Canadian Medalists (Feb 2014)
232. Top-100 Canadian CEOs Update: Who is the Most Over-Paid? (Jan 2014)
233. What's up, or should we say down, with REITs? (Dec 2013)
234. Canadian Mining Companies - Is now a good time to buy? (Oct 2013)
235. Electric Power Utility Stocks for the Income Investor?
236. Entertainment Companies: Potential Investment Thrills or Spills?
237. Fixed Income - the best rates in Canada across the maturity spectrum (Sep 2013)
238. The TSX Composite - Which are the real blue chips? (Sep 2013)
239. Update on High-Yielding Canadian Mortgage Companies: New Entrants & Rising Interest Rate Effects (Aug 2013)
240. Solid Canadian Stocks Currently at a Reasonable Price (Jul 2013)
241. Canadian Superstar Investors - How good is their performance? (Jul 2013)
242. Investing Strategy: Less Liquid Stocks Give Better Returns (Jun 2012)
243. Investing in Illiquidity - Where the small guy has an advantage (Feb 2013)
244. Looking for Value Stocks amongst S&P 500 Deletions
245. Company Risks - Pension Plans and the Z-Score

13) Leveraging – Borrowing to Invest

246. Borrowing to Invest: When & How to Do It
247. Borrowing to Invest: Examples of Potential Profits
248. Borrowing to Invest (Leverage) - Choosing Amongst Loan, Margin, Leveraged Fund, Capital Split Shares

14) Tools

249. Test Your Portfolio with Historical Investing Returns
250. The Best of the Online Investing Discussion Forums
251. Tools and Tips for Picking the Highest Rate GIC
252. ETF Screeners Compared
253. Cross-Border ETFs - Here's a Free Tool to Compare Costs
254. Investing Books
      

Disclaimer: This post and those linked-to above also written by me, are my opinion only and should not be construed as investment advice. Readers should be aware that any comparisons are not an investment recommendation. They rest on other sources, whose accuracy is not guaranteed and the article may not interpret such results correctly. Do your homework before making any decisions and consider consulting a professional advisor.