Search found 514 matches

by couponstrip
03 Apr 2022 11:38
Forum: Financial Planning and Building Portfolios
Topic: How to invest new money in an established portfolio?
Replies: 85
Views: 19370

Re: How to invest new money in an established portfolio?

Instinctively, I would think that those who do not sell, and have performed reasonably well, should be better off than those who have sold more often and have realized more CG. However, I would not be surprised if I am wrong here judging by how astute some of my fellow posters are in their investment choices. Not selling is almost always better. It has taken me a very long time to learn this. More often than not, what you sell will continue to do better than whatever you choose to replace it with. I continue to relearn this lesson over and over. Hence, one of the major appeals to me personally to switch to indexing a chunk of my portfolio. The funny part about that was that my USD holdings were all very much long term with significant CG i...
by couponstrip
05 Sep 2021 02:03
Forum: Retirement, Pensions and Peace of Mind
Topic: Early retirement reservations
Replies: 78
Views: 12511

Re: Early retirement reservations

Cosmo, thanks for the reply. ig, I am not going to check your math, but who can put away 80K at 30? not even MDs can do that, unless the parents paid for the education. The OP got lucky, I am not saying he didn't work for it, but getting in on an IPO is luck. I am simply trying to understand what career path, personal profile would allow someone to get into that level of savings/portfolio size. Besides, most people spend most of what they make. A friend of mine lives on 15k/month budget, he makes quite a bit of money, but it's all being spent, he had to borrow 50K to buy a new car. I find most people are like that. We spend this much. Judge away, but it's surprisingly easy to do. And I wouldn't say we are "living it up". We are p...
by couponstrip
28 Jul 2019 13:11
Forum: Retirement, Pensions and Peace of Mind
Topic: The F.I.R.E. movement...
Replies: 29
Views: 5732

Re: The F.I.R.E. movement...

I guess there are different ways to “retire” early. I agree the deadbeat who “retires” with a bad back to collect compensation for the rest of his life or a guy with “attitude” who thinks everybody else in the world is dumb might very well give the wrong impression to their kids (actually probably the right impression). One of my best friends from high school and the smartest guy I have ever known, fell into this category. Just wouldn’t work. Too lazy. Ended up a hermit. It’s hard to escape the conclusion that some (many?) people who want to retire very early are just lazy or resistant to direction from others. In any event, it does depend on your kids and their ages. If I was in your position I would keep working for sure. My daughter was...
by couponstrip
27 Jul 2019 22:27
Forum: Retirement, Pensions and Peace of Mind
Topic: The F.I.R.E. movement...
Replies: 29
Views: 5732

Re: The F.I.R.E. movement...

formerpatriot - thank you for sharing the article. On their blog, Kristy and Bryce talk about their risk mitigation strategy https://www.millennial-revolution.com/yield-shield/ and it might reduce some of the risks that you are referring to. As per FIRECalc, they have a 82% chance success rate ($1m portfolio, $40k expense, 60 yr. retirement). They work on projects they enjoy and generate some income. This extra income will reduce the draw down on their portfolio and help increase the success rate. https://www.millennial-revolution.com/freedom/how-much-does-it-cost-to-travel-the-world-for-1-year/ This blog post provides some insight into their travel style and the cost breakdown. AirBnB, Travel Rewards, mix of high/low cost destinations, et...
by couponstrip
27 Jul 2019 22:19
Forum: Retirement, Pensions and Peace of Mind
Topic: The F.I.R.E. movement...
Replies: 29
Views: 5732

Re: The F.I.R.E. movement...

Sounds like you are in a very good place, congratulations. I, personally, wouldn’t think retiring quite early into a well funded retirement would necessarily give the wrong message to your children though. Obviously, you have worked hard, planned very well, and saved a fair amount and thus can afford early retirement. How does this give the wrong message? Is working for the sake of working the message you want to convey? The good ‘ole Protestant work ethic? I retired at 56 into a very well funded retirement. I think my daughter views me as a “hero” for being able to do this. Agree that early ‘40’s is a big difference than 56. But when do you think it is morally OK to retire? Agree with all your other reasons to keep working. Some good poin...
by couponstrip
27 Jul 2019 21:51
Forum: Retirement, Pensions and Peace of Mind
Topic: Very Early retirement / peace of mind
Replies: 17
Views: 3459

Re: Very Early retirement / peace of mind

Congratulations on your impressive savings at your age. That said, your goal of retiring with your current savings and desired spending amount is not possible. The problem is that you are too young (a good problem) meaning that you are looking for this money to last 60 years or longer. It would run out well before then spending 85k/year. Using FireCalc, it estimates that you would need anywhere from 3.5 million to 4.5 million to retire at 26 assuming living to 86, 7.5% variable sequenced returns, and withdrawing 85k/year using a 95% success rate. But wait, that's not all. Withdrawing 85k and spending 85k are two different things. As you have acknowledged, there is a tax liability in your RRSP and CCPC/holding company. So some of that money ...
by couponstrip
27 Jul 2019 00:40
Forum: Retirement, Pensions and Peace of Mind
Topic: The F.I.R.E. movement...
Replies: 29
Views: 5732

Re: The F.I.R.E. movement...

It is interesting to look into someone else's life and see the decisions they have made. It's kind of them to provide this to us to read about. It's certainly unconventional. We are fortunate to be in a good place financially and could have stopped working a number of years ago without financial concern. We haven't for a couple of reasons. The biggest is that we have children and a teenager who are very impressionable. Getting them to understand the importance of working hard and to put maximum effort into their studies and summer jobs would come off flat if we, ourselves had already stopped working in our early 40's and were living a life of leisure in their midst. Do as we say, not as we do? Also, children require a fair amount of mainten...
by couponstrip
05 May 2019 13:26
Forum: Financial Planning and Building Portfolios
Topic: A Thank You to FWF
Replies: 35
Views: 3411

Re: A Thank You to FWF

#metoo I first discovered Shakespeare's primer in 2006 and then joined the forum a year later. The timing was perfect as we had just graduated from residency and were working down our debt so we could start accumulating. There is not a week since then that my spouse and I don't mention to each other how valuable this forum has been. Then we usually move on to discuss the internet, the medium for such an idea-sharing platform. What an incredible innovation. Remember how difficult it was to get information before the internet? Some industries thrived (and still thrive) on the information asymmetry. They know best so the people need them. The amount of money we save every year in fees is enough to make me faint. Even better than that, I have a...
by couponstrip
25 Apr 2019 20:02
Forum: Financial News, Policy and Economics
Topic: Clippings 2019
Replies: 453
Views: 61574

Re: Clippings 2019

randomwalker wrote: 08 Apr 2019 11:49 Why and How Capitalism Needs to Be Reformed (Parts 1 & 2)
by Ray Dalio, Published on April 5, 2019

https://www.linkedin.com/pulse/why-how- ... ublished=t
Very interesting. Thanks.
by couponstrip
28 Dec 2018 17:54
Forum: Financial News, Policy and Economics
Topic: Big Sucker Rally of 2009 Has Started
Replies: 339
Views: 54640

Re: Big Sucker Rally of 2009 Has Started

Thanks guys, it is important to own up to our mistakes and not deny or hide from them. Back then many people were thinking the US market would go through the same experience as the Japanese market did after 1989. I think those people however were not accounting for the size of the US in every way, economy and the reserve currency status, along with Central bank intervention. It's not easy to analyze in retrospect. It seems now that the events that took place were likely to occur given the things you list here (size of the US in every way, economy and the reserve currency status, along with Central bank intervention), but I would argue that they were not that obvious. In fact, I think there was even more risk than many of us understood. I s...
by couponstrip
21 Aug 2018 10:34
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 183
Views: 22041

Re: Clippings 2018

kcowan wrote: 21 Aug 2018 09:09 Yes the only thing that might make it better is if your deadbeat dad had been forced to pay child support.

For every program, there are good examples along with the bad. It is the bad ones that get reported.
Yes, that would have helped, but he had his own issues and didn't have any money, from what I have been told.
by couponstrip
21 Aug 2018 01:08
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 183
Views: 22041

Re: Clippings 2018

Canada is one of the most socially mobile countries in the world Excerpt from the article: In terms of the absolute degree of social fluidity, Canada is ranked first in the world by the OECD. Nearly three-quarters of Canadians aged 25 to 64 were in a different social class than their parents between 2002 and 2014 ... The fact that Canadians enjoy Scandinavian levels of equity without having to rely on Scandinavian levels of taxation or social conformity is further testament to the importance of Canada’s education, health care and welfare systems, as well as the country’s commitment to welcoming newcomers. Interesting article. I had 6 sibs. All of us were raised by a single uneducated mother after my father left us when I was 4. We spent ye...
by couponstrip
31 May 2018 23:26
Forum: Financial Planning and Building Portfolios
Topic: Small Cap vs Value Effect
Replies: 13
Views: 1188

Re: Small Cap vs Value Effect

We have tilted to small since starting in 2006. Since inception, the returns from US small have been greater than the US broad market and US large cap (which shows similar returns to US broad market).

Of course, this is just one slice of time. Does it exist when multiple rolling periods are evaluated? I don't know.

Will it persist? I'll update in 40 years.
by couponstrip
28 Feb 2018 15:02
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 1100
Views: 151899

Re: Investment income in a CCPC

Oh yes, I think you are correct. The exclusion of capital gain is for that specific quoted circumstance and wouldn't apply to the sale of shares in the market.
by couponstrip
28 Feb 2018 12:02
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 1100
Views: 151899

Re: Investment income in a CCPC

It shouldn't be punitive. (Aside from accounting costs associated with a corp.) The ability to clear rdtoh with eligible dividends, while replenishing investments with sbd money, was a legitimate 'loophole' imo. Honestly, these proposals seem far more reasonable than anything floated earlier. (And I say that as someone who will be paying a fair bit more tax as a result.) For a CCPC that does not have any significant SBD available to it, I'm getting about 1.5% greater tax when earning income through a PC at the general rate (27%) and paid out as an eligible dividend for various amounts 6 figures and higher, all Alberta rates . I'm guessing they will tweak some of these rates in 2019 so the integration works better. There would still be the ...
by couponstrip
28 Feb 2018 10:36
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 1100
Views: 151899

Re: Investment income in a CCPC

icudoc wrote: 28 Feb 2018 09:35
I want to confirm:
1. NO change to CDA regime, but triggering big investment gains is passive income which could exceed 50K, lowering SBD. So rebalancing and triggering gains is dangerous.


icudoc
I might be reading it incorrectly, but I think that all capital gains are excluded from the 50k passive income threshold. Realized capital gains will not cause SBD clawback. Only dividend and interest income greater than 50k results in SBD clawback.
by couponstrip
27 Feb 2018 23:14
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 1100
Views: 151899

Re: Investment income in a CCPC

It seems like products like Horizons HXT will be more popular to minimize the passive income in a CCPC and accumulate more money without incurring the SBD clawback.

The RDTOH elimination for eligible dividends is a difficult item for at least one person I know who pays the general rate on almost all of their retained earnings due to being part of a large partnership that is required to split the SBD. I suspect this effectively eliminates any tax advantage of having a CCPC for such individuals. I'll have to do the math, but I wonder if it might even be punitive to earn through a CCPC vs personal in that circumstance.
by couponstrip
16 Feb 2018 12:10
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 183
Views: 22041

Re: Clippings 2018

An article on the key elements of a well-managed portfolio
However, what (almost) everyone needs and wants is for the overall portfolio to generate the best return possible. No portfolio should simply be left to grow on its own like an oak tree; you can choose to tame it any way you like, just make sure you are happy with the result.
Hmmm, I don't know. We've left our portfolio to grow like an oak tree for 12 years without any intervention, and it's worked out pretty well. :)
by couponstrip
30 Jan 2018 15:42
Forum: Financial Planning and Building Portfolios
Topic: Derek Foster
Replies: 264
Views: 25593

Re: Derek Foster

I would also submit that a father of seven is not retired in any sense of the word. Unless he is living in a different residence and has hired someone else to do the parent duties, his time is not his, but rather his family's. The freedom to really live like a retiree is likely 10-20 years hence.

Again, hats off to you, Derek Foster.
by couponstrip
30 Jan 2018 15:32
Forum: Financial Planning and Building Portfolios
Topic: Derek Foster
Replies: 264
Views: 25593

Re: Derek Foster

I am not an economist, but broadly looking at it, I can see how allowing a population to age without replacement is not the road to prosperity. Our elderly population has to be the highest expense for our country and no longer contribute significantly to government revenue as they did in their working years. An oversized elderly population would be a problem. To support our economy and social programs, I would think that we would need a constant renewal of not only the labour to work in private and public industry at a reasonable wage, but also maintain the tax base to fund our programs. In Canada, we do not have the birth rate to maintain our population, tax base, and fill these jobs. So we rely on immigration. That's fine, but there is no...
by couponstrip
17 Jan 2018 09:42
Forum: Financial News, Policy and Economics
Topic: Has your Investment Policy Changed After the US Election
Replies: 99
Views: 9736

Re: Has your Investment Policy Changed After the US Election

The data in NormR's Periodic Table of Annual Returns for Canadians for 2017 shows

EM - 28.7%
EAFE - 17.4
S&P 500 - 13.4
S&P/TSX - 9.1
Yes, but Trump wasn't elected on Jan 1, 2017.
All in CAD
Indeed.
by couponstrip
16 Jan 2018 17:52
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 111
Views: 6825

Re: How Did You Do in 2017?

Well that's very generous, Keith, but it's more like: If you are going to DIY, make sure you understand what your broker is reporting on its reports. :)

My interest in tracking this carefully did fade about 2 years after learning to DIY. It seems to me that tracking yearly returns is largely an academic exercise, but fun to look at from time to time as long as you (and by you, I mean me) do it right.

What matters in the end is the average price paid and what prices I eventually sell at, the latter still years away.
by couponstrip
16 Jan 2018 16:45
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 111
Views: 6825

Re: How Did You Do in 2017?

Ok, I had a chance to take a closer look. Norbert's first assumption/instinct was exactly right. My quoted returns did not account for the loss of value of the CAD over the year. My broker (IB) gives a "mark to market" summary and breaks this down into CAD and USD holdings. So I took the profit numbers from those two tables and computed them. The USD table quotes the mark-to-market change in value in USD and the final line of this table converts the year's profit to value in CAD without adjusting for the profit/loss in currency value over the year. That is a third "mark to market" table underneath, I have discovered which has a large negative amount for 2017. So our 2017 returns are not nearly as impressive as I thought ...
by couponstrip
16 Jan 2018 14:40
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 111
Views: 6825

Re: How Did You Do in 2017?

Yes, something is definitely off if those are the returns from each ETF for 2017. I've just taken the yearly return figure from our brokers' spreadsheet for each account and averaged them by weight. Let me take a closer look tonight.