Search found 383 matches

by MaxFax
22 Jun 2023 16:23
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Re: Govt Report + suggested changes

I'll sign off now (I'm the OP). I have been saying the same thing since 2009, periodically here. Nothing changes. The recent regulars/visitors should read my paper and decide for themselves.
by MaxFax
22 Jun 2023 16:11
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Re: Govt Report + suggested changes

Actually, a lot of people here and elsewhere have proved that the main benefit of both the RRSP and the TFSA are tax free growth on after-tax income. However, I would be interested in knowing where the wiki stated that "...profits are taxed..." The wiki says at https://www.finiki.org/wiki/Registered_Retirement_Savings_Plan#Tax_advantage... "Tax advantage: A RRSP, like all registered plans, is a means to defer taxes, quite unlike an explicit tax shelter such as a Tax-Free Savings Account (TFSA). There are four primary tax advantages to a RRSP. The first is to allow gains on investments to compound tax-free until they are withdrawn. The second is that the tax refund, if reinvested, can augment savings. The third is that loweri...
by MaxFax
22 Jun 2023 13:50
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Re: Govt Report + suggested changes

adrian2 wrote: 22 Jun 2023 12:20
All you have highlighted is some tweaks.
Then why do you refuse to correct your site? Instead of posting excuses ... post where/why my math is wrong.
E.g. I prove that the main benefit is from permanently tax-free profits on after-tax savings. You claim that profits ARE taxed, and at full rates on withdrawal. Why is my math wrong, and where is your math measuring net profits?
by MaxFax
22 Jun 2023 11:32
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Re: Govt Report + suggested changes

Peculiar_Investor wrote: 22 Jun 2023 09:38 Using solely your written material does not meet the requirement of Wikipedia:Citing sources.
The site must choose between publishing false information that misleads readers, or not publish at all, or publish the correct information. Math, not popularity, is proof. No one has ever in 13 years, found any error in my math. People here made the choice in the past (a few times) to just repeat the false information. I am giving any new members a chance to correct that decision.
by MaxFax
22 Jun 2023 09:18
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Re: Govt Report + suggested changes

The issue of 'low income people ' was certainly the argument of the lobby groups wanting lower required RRIF draws. But I fail to see how allowing draws LESS than the inflation-adjusted-steady-state would have any impact on them. 1) The sharp decline (table 4) in annuitants, between age groups after age 71, cannot be explained by death rates. It can only be explained by people withdrawing so much more than the $minimum, that they zero-out their accounts. Is it reasonable to think that it is the rich that are doing do, and not the poor? 2) The % of an age cohort drawing ONLY the minimum (ie not needing more) increases sharply with the older age groups, indicating to me the same issue ... the poor are NOT constrained by the minimum draws, the...
by MaxFax
21 Jun 2023 10:13
Forum: Retirement, Pensions and Peace of Mind
Topic: Govt Report + suggested changes
Replies: 18
Views: 1285

Govt Report + suggested changes

I arrived at your site in order to post a link to this week's government paper on RRIF stats, that (afaik) is the only calculations for more than about a decade? I won't be maintaining public access to it, so take a copy if you like. There is a privet members bill getting support from all the parties, proposing to reduce RRIF draws ... because of a list of woe-is-me excuses that really are just "We don't want to pay tax so screw our kids". https://www.dropbox.com/s/8b8wd3n18e8p3sk/govtRRIFstudy2023.pdf?dl=0 But while I'm here, please consider the following list of changes to your finiki. ( I ) page " TFSAs versus RRSPs at https://www.finiki.org/wiki/TFSAs_versus_RRSPs (A) COMPARISON TABLE : 1) Spousal Contributions : TFSA: Ma...
by MaxFax
24 Dec 2010 12:53
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Bond ETF's Pricing
Replies: 12
Views: 1483

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 is lower than the distribution rate, the difference is a ROC. That is why when you buy/sell bond ETFs you ignore the distribution and look at the YTM. As bonds are turned over, they will be replaced with bonds of even higher yields. I would suppose the distribution would increase as well. Not really, The following math is not exact, but shows the point.... You own $1,000 market value bond with 5% distribution = $1,000*5%= $50 Market yields rise to...
by MaxFax
24 Dec 2010 12:07
Forum: Retirement, Pensions and Peace of Mind
Topic: DIY Retirement Plan for small business
Replies: 5
Views: 1157

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 $$ are pooled is usually the reason why those clubs quickly change into ones without $$, just discussion.

Couch Potatoes don't really have any costs to start with. They also have all the diversification anyone would need. So where is the upside? I see only downsides. You lose all kinds of decision making and incur organizational costs.
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: 11991

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 something quite different from what they have publicly offered as the list of "POSSSIBLE positions". No links were given to documents that show the "true'" position papers so I guess we are to assume they are keeping their new and different positions secret? The quoted sections used above to prove that inter-generational inequality is not on the table, are just very small sections within a larger whole that advoc...
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: 11991

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 entitled to (at the expense of their own descendents). Yes, that is what a lot of the participants in the process are looking for. Even the Fed's position is very weakly stated, and obviously includes some wiggle room. You should NEVER assume that because a position is not stated baldly, that it is not on the table, just because ...."Under the current legislation", or "This is inconceivable". You have to read what is NOT stat...
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: 2398

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 small than the ETF fees. (not stated whether - but implies - this is expected to result in outperforming the index) * Small investors have edge (over ETFs?) in small caps because they are illiquid and not covered by analysts. * Stock picking can be done without any extravagant amount of time or knowledge. (not stated whether 'successfully') * You should stock pick when there is no ETF of the portfolio you want (Div but not too muc...
by MaxFax
22 Dec 2010 09:51
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mortgage or HELOC?
Replies: 69
Views: 10336

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 emergency fund, especially because you have a mortgage. Replacing that fund with 'an ability to borrow' only guarantees that when bad things happen, you will be digging yourself deeper.
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: 11991

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 a delay in the benefits side of the issue. Ditto for the position of CARP. It has only been that guy (Malcome ???) who has been pushing this idea and making sure it is in the open. The links to the position papers are available in the submission at this old link. http://www.financialwisdomforum.org/forum/viewtopic.php?f=30&t=111606 Flaherty has publicly supported the inter-generational issue and delayed increases, maybe because some people ca...
by MaxFax
20 Dec 2010 10:11
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: US bonds in Canada
Replies: 5
Views: 560

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 $50,000 sale (one reason why I never buy individual bonds since). I don't see any real reason to charge you more for US bonds than Cdn ones. But there is no way to know what is going on because all the markups are hidden. Simply FINDING US$ bonds may be a problem though. You might well find it much simpler to buy CAN bonds along with a currency hedge.
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: 2398

Re: Indexing or Individual stocks (individual stocks worth i

BRIAN5000 wrote: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-picking should have the necessary knowledge base, and have the necessary time, and find the process fun.
by MaxFax
19 Dec 2010 12:41
Forum: Financial Planning and Building Portfolios
Topic: Perfect Correlation? Risk = Standard Deviation? Huh?
Replies: 11
Views: 2754

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

gummy wrote: 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 word 'risk' is synonymous with SD when used in finance circles. The sentence is simply a tautology.

I don't think anyone really believes that SD is the risk though. E.g. if you know what SD is, then you know that it measures the upsides as well as the downsides. OF COURSE no investor worries about excess upsides. SD is still important, for various reasons, for understanding risks associated with investing.
by MaxFax
18 Dec 2010 12:46
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 4400

Re: Weakness of Indexing

I have no idea what prompted that misrepresentation of my opinions.
MaxFax wrote: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 proved by looking ONLY at a subset of participants. Unresoved arguments.

I see four weaknesses with indexing....
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: 6338

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 / historicalCostAgesAgo". Even if it wasn't him personally, the newsletter has historically been the worst offender of "dividend hype". And he chose to be part of it. When I have read the newsletter, I too have found the insurance articles helpful BUT it may well be that my opinion is ONLY because I don't know enough about insurance to know what is right/wrong. I DO enough about investing to find their investing articles un-dependable.
by MaxFax
17 Dec 2010 11:04
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 4400

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 to fiddle, the INVENT needs to fiddle that in reality are only disguised efforts to beat the index.

If anyone says they do NOT enjoy the process/work, or have the time, or have the knowledge to 'bring something to the table', then of course they should offload it by buying indexes. But those people are not everyone.
by MaxFax
17 Dec 2010 10:45
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Income Trusts and REIT
Replies: 12
Views: 1827

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: 1827

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-tax basis, but in practise the estimate is rough enough that the tax effects won't change the decision. THEN you decide in what type of account they are best held. You sort your different holdings by the amount $$ of tax they are likely to attract. You put behind the RRSP and TFSA walls the assets that attract the highest $$ tax ($rate of return multiplied by the marginal tax %rate that will be applied to that kind of security). In your case it ...
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: 1419

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 you and take your hand, but anyone with integrity can only tell you that 'you have to learn the basics yourself, and then make your own investing decisions'. You have been posting on the non-financial part of this site for almost a year, so you should have seen all the threads started on "I am just starting - what should I learn - where should I learn it?". You must also see the recent thread called "The Case Against High D...
by MaxFax
16 Dec 2010 12:11
Forum: Financial Planning and Building Portfolios
Topic: Weakness of Indexing
Replies: 54
Views: 4400

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 proved by looking ONLY at a subset of participants. Unresoved arguments . I see four weaknesses with indexing. 1) The information available on the index is poor and/or misleading. Basic info like the P/E ratio is purposefully calculated in a way to ignore and omit information. Instead of adding up all the earnings and adding up all the prices (weighted) and then dividing one by the other ..... they calculate the ratio for each company and then esse...
by MaxFax
14 Dec 2010 11:07
Forum: Taxing Situations
Topic: How to calculate ACB
Replies: 66
Views: 10963

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 spouse.