Search found 375 matches

by MaxFax
24 Dec 2010 12:53
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Bond ETF's Pricing
Replies: 12
Views: 1245

Re: Bond ETF's Pricing

Down to this point eveyrthing you say is correct. Ishares has reduced the monthly distribution - can only assume Claymore is subsidizing distribution with return of capital. You don't have to assume anything. Look at the issuer's website. They all publish the ETF's yield to maturity YTM. When this i...
by MaxFax
24 Dec 2010 12:07
Forum: Retirement, Pensions and Peace of Mind
Topic: DIY Retirement Plan for small business
Replies: 5
Views: 955

Re: DIY Retirement Plan for small business

I would beware of instigating a company wide initiative when not everyone agrees with you. I second the opinion that your driving motive of reduced costs will not materialize. The bookkeeping involved for investment clubs where the $$ are pooled is usually the reason why those clubs quickly change i...
by MaxFax
24 Dec 2010 10:02
Forum: Retirement, Pensions and Peace of Mind
Topic: What's up with Flahtery pension plan ?
Replies: 248
Views: 10171

Re: What's up with Flahtery pension plan ?

Regarding inter-generational inequities --- I apologize for telling people to read the actual "position papers" of the governments, when they are not technically "position papers'". Evidently that makes a difference to some some people. I guess we are to presume that the provinces are arguing someth...
by MaxFax
23 Dec 2010 11:11
Forum: Retirement, Pensions and Peace of Mind
Topic: What's up with Flahtery pension plan ?
Replies: 248
Views: 10171

Re: What's up with Flahtery pension plan ?

OK, I'm still confused. Would currently-retired persons see an increase in their CPP benefits as a result of an expanded CPP program or not? My entire opposition to increasing CPP premiums is based on the prospect of people who are already retired suddenly collecting bigger CPP cheques than they're...
by MaxFax
23 Dec 2010 10:11
Forum: Financial Planning and Building Portfolios
Topic: Indexing or Individual stocks (individual stocks worth it)
Replies: 41
Views: 1968

Re: Indexing or Individual stocks (individual stocks worth i

I was surprised by the voting results, so I went through all the post, ignoring all the stuff about "what I do" and "what you should do", and just collected the reasons given. Here is the short list without any editorial on my opinion on their validity. Pro Stock Picking * Transaction costs are smal...
by MaxFax
22 Dec 2010 09:51
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mortgage or HELOC?
Replies: 69
Views: 7066

Re: Mortgage or HELOC?

It is my understanding that HELOC are just lines of credit that can be pulled whenever the bank likes. Banks offer umbrellas when the sun is shining and take them back when it starts to rain. Stick with a mortgage. You can get flexible payments within a mortgage. You should have a healthy cash emerg...
by MaxFax
22 Dec 2010 09:36
Forum: Retirement, Pensions and Peace of Mind
Topic: What's up with Flahtery pension plan ?
Replies: 248
Views: 10171

Re: What's up with Flahtery pension plan ?

In fact Kombat is correct. You can read the position paper originally presented by the consortium of provinces pushing this reform. No where in the stated list of principals was there any mention on inter-generational fairness. No where in their description of CPP increases was there any mention of ...
by MaxFax
20 Dec 2010 10:11
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: US bonds in Canada
Replies: 5
Views: 427

Re: US bonds in Canada

The transaction cost in the bond's price will be WAY higher than the ETF yearly MER. Remember you will pay twice - on purchase and on sale unless it is a maturity. I have been charged 1.5% on a $50,000 sale (one reason why I never buy individual bonds since). I don't see any real reason to charge yo...
by MaxFax
19 Dec 2010 13:00
Forum: Financial Planning and Building Portfolios
Topic: Indexing or Individual stocks (individual stocks worth it)
Replies: 41
Views: 1968

Re: Indexing or Individual stocks (individual stocks worth i

Is it really worth it? I could buy ETF's and rebalance on a yearly basis and be done with it. That clearly shows you consider the time, worrying, knowledge involved in stock picking to be a 'cost' - not something you enjoy. So I think your decision is a no-brainer. Index. The only people stock-pick...
by MaxFax
19 Dec 2010 12:41
Forum: Financial Planning and Building Portfolios
Topic: Perfect Correlation? Risk = Standard Deviation? Huh?
Replies: 11
Views: 2398

Re: Perfect Correlation? Risk = Standard Deviation? Huh?

One reads that Standard Deviation (or stock "volatility") measures the risk associated with a stock. Does anybuddy actually believe that? I do. I changed your bold to include the 'the' because I think that reflects your point, and also my argument. It has become 'accepted for convenience' that the ...
by MaxFax
18 Dec 2010 12:46
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 3940

Re: Weakness of Indexing

I have no idea what prompted that misrepresentation of my opinions. It needs to be pointed out that both the Chevreau piece and CdnCouchPototo's response above discussed ONLY ONLY ONLY the dichotomy of choice between passive indexing vs. PAYING someone to manage your money actively (e.g. mutual fund...
by MaxFax
18 Dec 2010 12:15
Forum: Financial Planning and Building Portfolios
Topic: The Case Against High Dividend Stocks in Retirement
Replies: 116
Views: 5594

Re: The Case Against High Dividend Stocks in Retirement

Was that really a David Stanley quote: "Hyping dividend investing has become a growth industry.... a steady parade .. preaching the advantages of ...dividend-paying stocks." ?? Seems to my memory that it has been himself promoting dividends using the false math of "next-1yr'sDiv / historicalCostAges...
by MaxFax
17 Dec 2010 11:04
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 3940

Re: Weakness of Indexing

I think it is easy to dispute "Sharpe's arithmetic." A lot of people doing their own stock picking love the process and do not consider it work or a cost on their time. This is the exact same observation as I made above that indexers cannot just 'buy and forget' === they WANT to be active, they WANT...
by MaxFax
17 Dec 2010 10:45
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Income Trusts and REIT
Replies: 12
Views: 1586

Re: Income Trusts and REIT

Sorry but you have to do the steps I explained yourself. We cannot do it for you because we don't know the specifics.
by MaxFax
16 Dec 2010 21:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Income Trusts and REIT
Replies: 12
Views: 1586

Re: Income Trusts and REIT

I should be selling them or transferring them out ? You are mis-hearing the advice about tax-optimization. Your first decision is what investments you want to own because you think they will earn you the highest return (for accepable risk). Yes in theory you make that estimate of return on an after...
by MaxFax
16 Dec 2010 12:25
Forum: Retirement, Pensions and Peace of Mind
Topic: is it worth to invest in income fund ?
Replies: 16
Views: 1185

Re: is it worth to invest in income fund ?

To Picard The reason you are getting those answers is because your questions are the kind that only a salesman would answer. They imply that you are a newbie to investing and just want someone to tell your "buy this", without having to learn anything about investing yourself. A salesman will love yo...
by MaxFax
16 Dec 2010 12:11
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 3940

Re: Weakness of Indexing

It needs to be pointed out that both the Chevreau piece and CdnCouchPototo's response above discussed ONLY ONLY ONLY the dichotomy of choice between passive indexing vs. PAYING someone to manage your money actively (e.g. mutual funds). No conclusion on the general issue of 'active vs passive' are pr...
by MaxFax
14 Dec 2010 11:07
Forum: Taxing Situations
Topic: How to calculate ACB
Replies: 66
Views: 8834

Re: How to calculate ACB

"Do I begin discussions with CRA?" NO. Keep mum until you have this sorted and you have a game plan. It may end up being a loss anyways. Since you inherited the shares, their value at issue from BCE is irrelevant. You would assume ownership at their value as claimed by the deceased. Unless came from...
by MaxFax
14 Dec 2010 11:02
Forum: Financial Planning and Building Portfolios
Topic: The Case Against High Dividend Stocks in Retirement
Replies: 116
Views: 5594

Re: The Case Against High Dividend Stocks in Retirement

Ref Gordon Growth Model = Dividend$(1+g)/(r-g) This is the basic model used for valuing dividend-paying common stocks. Their dividend payments are discounted back to the present. Only one growth rate is assumed - to continue in perpetuity. Inputs $2.50 Dividend$ today (not forward year's) 7.0% Grow...
by MaxFax
14 Dec 2010 10:47
Forum: Financial Planning and Building Portfolios
Topic: mint.com/canada
Replies: 14
Views: 2441

Re: mint.com/canada

Beats me how so many web users have no quams about security. I would never even consider this site. And that still leaves the question "WHY use it". What exactly is it going to do for you that you cannot do better yourself?
by MaxFax
13 Dec 2010 10:15
Forum: Taxing Situations
Topic: OAS clawback questions
Replies: 326
Views: 19363

Re: OAS clawback questions

Would it be wise to take capital gains and balance with losses prior to taking OAS at age 65? I would * Do a rough estimate of your taxable income in 'true' retirement that includes RRIF draws, your portfolio income average and any gov't benefits. * Use one of the webtools for a rough estimate of y...
by MaxFax
13 Dec 2010 09:44
Forum: Taxing Situations
Topic: How to calculate ACB
Replies: 66
Views: 8834

Re: How to calculate ACB

You have to use the actual prices for both the original split off from BCE and for the subsequent transactions. You cannot work with anything as unspecific as "they turned into xx shares". You can pay your broker to reproduce your old statements if you have thown them out. From now on, don't. You ca...
by MaxFax
11 Dec 2010 12:02
Forum: Financial Planning and Building Portfolios
Topic: Help with my strategy/portfolio
Replies: 44
Views: 2217

Re: Help with my strategy/portfolio

does anyone have any data on the TSX which shows historically what each sector has done? That question has been asked before. Pretty sure no one has come up with a fee source. No doubt the TSX has the data (now managed by S&P) but you would have to pay for it. You can pull up the graphs from the li...
by MaxFax
08 Dec 2010 12:30
Forum: Retirement, Pensions and Peace of Mind
Topic: Long term care
Replies: 147
Views: 10167

Re: Long term care

tedster wrote: .. sometime during the night, she must have "turned herself off".
I cannot decide if that is an incredibly sad story, or whether that is "exactly the way I want to go".
by MaxFax
08 Dec 2010 12:05
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Advice building a non-RSP Dividend Portfolio
Replies: 48
Views: 3699

Re: Advice building a non-RSP Dividend Portfolio

... why build a dividend portfolio now when retirement is 15 years away? 1) .. provide safety and growth. I would feel more comfortable riding out a market drop than I would with a resource or tech stock. 2) I can start DRIPs 3) I don't know when is a good time to get into / out of a stock so I wan...