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Average rating: 4/5

Based on 80 ratings

The Lazy Investor: Start with $50...and no Investment Knowledge

by Derek William Foster

August 23, 2007 | Trade Paperback

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$19.95
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This item is found in: Finance and Investing

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  • Daniel Hoeving's Review
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Rating: 5/5

Clever and Useful

Daniel Hoeving

4 years ago

With all due respect to other reviewers, this book is a) a straight forward read and b) pretty darn accurate.

Looking at the plan he lays out in this book -- using DRPs coupled with SPPs your investment quickly becomes sizable.
Look at the major Canadian banks: BNS dividend .50/share/quarter that means at 100 shares ($4850.00 roughly) you will be receiving 1 additional share every quarter. Assuming that you continue to invest regularly (say about 375-400 dollars per month -- remember pay yourself first, let the bill collectors wait) you will receive 4 "free" shares in the second year (plus partial shares from the year before) 8 "free" shares the third etc... And that's not looking at splits, dividend increases, partial share reinvestment etc. At 2500 shares (his average recommendation in his first book) you would receive a quarterly income of $1250 dollars -- now multiply that by the number of companies in your portfolio (Say for example: BNS, CM .87/share/quarter, BMO .70/share/quarter, REI.UN .11/share/month, and NA .62/share/quarter) is roughly $6250 per quarter (three months) which is over $2000.00 a month.

I say its definitely achievable -- My wife and I have already started, we have an 18 year plan. Its a long term plan, but that is his point in the book -- this isn't a get rich quick scheme its a retirement plan. And according to Canadian law its a retirement plan you can pass on to your children (Securities can be directly transferred at death).

Now having said all that, I wouldn't stop with this plan -- I'm greedy -- but he also has a list of books for his readers in the back and I highly recommend reading them. Look into things like incorporating, rental properties etc... Very useful, all of it.

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