Ontario Securities Commission uncovers “significant deficiencies” in targeted review + MORE Jun 7th

The problem
Patrick, 38, and Lisa, 37, moved their RRSPs out of a large investment firm to switch to ETFs. They don’t consider themselves aggressive investors. With sons Philip and Jeremy still in grade school, they aren’t expecting to retire for at least 20 years. “I question whether our asset allocation is optimized,” Patrick says. Half the portfolio is in two iShares dividend ETFs (TSX-listed CDZ and XDV), 40% is in two iShares bond ETFs, and the rest is in the iShares Gold Bullion Fund (CGL). They want to cut costs and add exposure to U.S. and international equity income, but aren’t sure how to do it. “My head is starting to spin,” says Patrick.
The fix

The existing 40% bond exposure is about right but Brian Smith, portfolio manager with Fit Private Investment Counsel, recommends lowering Canadian equity exposure to 25% and halving the gold play to make room for 30% international content. Fit provides discretionary investment counsel only in Ontario and B.C. and most client equity portfolios are tilted to higher dividends, Smith says…

CBC.caSaskatchewan Senator Pamela Wallin filing lists Toronto homeCBC.caSenator Pamela Wallin is listed as a resident of Toronto — and not Saskatchewan, the province she represents in the Senate — according to the corporate filings of a Bay Street investment firm. Wallin, a former Conservative now sitting as an Independent, was …For Wallin and other directors, any residence will doGlobe and MailSenate expense scandal: Pamela Wallin resigns from Gluskin Sheff boardToronto StarPamela Wallin could pay back another $20000 in expense claimsCTV NewsCanada.com -DigitalJournal.com -Advisor.caall 13 news articles »

Earlier this week, I learned The Dividend Ninja decided to say goodbye to the world of blogging.  Avrom started his journey almost 3 years ago with a small WordPress site about dividend investing, that quickly grew to well over 1,000 dedicated readers and followers.  Although becoming a financial writer was never something he said he aspired to do, I’m certainly glad Avrom gave it a shot since otherwise I would have never found this wonderful site.  The good news is, his articles will stay online for all of us to check for some time to come.
Avrom, thanks for the articles, the blog support and teaching me a number of things of about finance, investing and managing a website.  Whatever the future holds, I wish you happiness and success.
Before I get to the other articles, I also need to headline my friend Andrew Hallam is giving away 10 copies of his best-selling book: Millionaire Teacher.  Andrew’s says about his book “It’s no panacea, but I think you’ll enjoy its quirkiness and easy readability…

A sweeping review of nearly 90 investment firms that cater to high-net worth clients, found problems with Know Your Client forms.

Every year, I read the annual Berkshire Hathaway shareholders letter, written by Warren Buffett. I highly recommend that anyone interested in the markets take the time read it. It’s an interesting long term perspective that we rarely see. Why would someone want to build a mini-Berkshire? I guess having a fund that grows steadily over time, that outperforms stock indexes such as the S&P500 would help me tremendously in my passive income objectives.
What I Do Not Want From My Mini Berkshire
Two main things that I would not look to replicate:
-Having shareholders: Buffett and Berkshire have shareholders that they invest for and while using other people’s money is a great way to get bigger, it’s not something I’d look to do at this point.
-Paying Dividends: While Berkshire does not pay out dividends to shareholders, I do expect to depend on income from my investment fund at some point and would thus need to rely on some income at a certain point.
Similarities Between My Mini-Berkshire And The “Real” Thing
Positive cash flow: Berkshire gets very important cash flows from its insurance businesses that generate cash flows…