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by ghariton
19 Sep 2017 18:01
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 354
Views: 14973

Re: Philosophy of dividend investing?

Thank you, Norm. Very interesting. My first reaction is that investing in Canadian dividend-payers is a very concentrated strategy. It achieved a high rate of return over the period you cover. But I would fear that the lack of diversification might make the strategy vulnerable in downturns. Out of c...
by ghariton
19 Sep 2017 15:28
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 354
Views: 14973

Re: Philosophy of dividend investing?

Larry Swedroe thinks dividends don't matter , except as part of total return: Conclusion Both theory and historical evidence demonstrate there isn’t anything unique about dividends. They are just another source of profit, along with capital gains. Yet many investors treat these two sources of profit...
by ghariton
14 Sep 2017 21:02
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

Rysto wrote:
14 Sep 2017 20:16
The GST was supposed to be a replacement for a tax on manufacturers, which was indeed repealed. The GST was revenue neutral.
You're right of course. I don't know what I was thinking when I wrote that.

George
by ghariton
14 Sep 2017 16:12
Forum: Financial Planning and Building Portfolios
Topic: Maximum single position size
Replies: 52
Views: 2006

Re: Maximum single position size

However, it is not clear to me how the RRB will be perform into maturity, as there 2 components - the original 4.25% and the inflation adjustment. Assuming the inflation adjustment will be small, I am concerned about a drop in market value as the premium disappears. The size of the premium has been...
by ghariton
14 Sep 2017 13:10
Forum: Financial Planning and Building Portfolios
Topic: Maximum single position size
Replies: 52
Views: 2006

Re: Maximum single position size

The 2021 RRB at 35% of the portfolio. Everything else is in equity ETFs. Looking through the ETFs, my single biggest holding appears to be Apple, somewhere between 1% and 2%. George When I bought the 2021 RRB, the maturity date seemed like such a long time in the future. Now it is less than 5 years...
by ghariton
13 Sep 2017 14:26
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 192
Views: 11539

Re: Why Active In Bonds Does Better Than Stocks

I agree with the first point, that noneconomic players indirectly help active bond investors. And the high turnover of bond indexes doesn't help. One of the reasons that stock indexing works well is low turnover: that keeps costs, including taxes, down. About the preceding paragraph, I'm not convin...
by ghariton
13 Sep 2017 14:18
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

How do you feel about GST then? :) Well, since not much can be said on the original topic of this thread until we get more detail from Mr. Morneau as to his proposal, I don't feel too badly continuing off-topic. However, it might be helpful if some kind moderator could split off the last dozen post...
by ghariton
12 Sep 2017 17:14
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

izzy wrote:
12 Sep 2017 16:32
My suggestion WAS tongue in cheek George.
I knew that. I just couldn't resist another opportunity to get on my soapbox. :wink:

George
by ghariton
12 Sep 2017 13:57
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

How about taxing inherited wealth such as that enjoyed by Trudeau and his cronies whilst we are at it? Other countries do it ! We could use a similar test to determine what is "reasonable" too! It's only "fair" to tax those who have not contributed to the accumulation of the wealth at a higher rate...
by ghariton
11 Sep 2017 21:03
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

I'm not sure it is ever fair to tax someone on unrealized gains since it may force the taxpayer to liquidate his/her investment prematurely in order to pay the tax. If the taxpayers had adequate notice -- if it was built into the tax system -- they would adjust and make provision for it. The real p...
by ghariton
11 Sep 2017 17:56
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

and let's tax all capital gains on an annual accrual basis as we do with interest! After all,it would only be "fair" since a buck is a buck ! That was the original proposal. It wasn't implemented because it was too hard to do, and the record-keeping would be horrendous. But the principle makes sens...
by ghariton
11 Sep 2017 12:05
Forum: Retirement, Pensions and Peace of Mind
Topic: Does it make sense to rent in later retirment?
Replies: 37
Views: 1401

Re: Does it make sense to rent in later retirment?

Each situation is unique, and there are factors other than monetary that enter into the decision. In my case, I'm very sensitive to noise. Our house is in a very quiet neighbourhood, behind a school and beside a park. There's hardly ever anybody there outside of school hours. I've also had anti-nois...
by ghariton
10 Sep 2017 00:00
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 809
Views: 69108

Re: Investment income in a CCPC

As AltaRed says, to the degree a multinational has a presence in Canada, it pays Canadian taxes. To the degree it has employees in Canada, they pay taxes here too. And yes, Google and Netflix do have Canadian employees. To the degree a foreign company does not have a presence in Canada, why should i...
by ghariton
06 Sep 2017 15:21
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 192
Views: 11539

Re: 1/N Asset Allocation

This is intended for less financially knowledgeable investors, such as myself. You're much too modest. So 1/N is a good strategy for a DIY investor. Of course, there's the problem of choosing N. Since most of us can't handle a very large N, this will have to be a subset. But of what? The S & P 500?...
by ghariton
05 Sep 2017 20:38
Forum: Financial News, Policy and Economics
Topic: NAFTA renegotiation
Replies: 19
Views: 462

Re: NAFTA renegotiation

Because of the free rider problem. People who don't pay union dues still benefit from the wages and benefits collectively bargained by the union. Misleading. I don't have the numbers (because unions are very secretive) but I suspect that a very small portion of union dues go to negotiating contract...
by ghariton
05 Sep 2017 13:48
Forum: Financial News, Policy and Economics
Topic: NAFTA renegotiation
Replies: 19
Views: 462

Re: NAFTA renegotiation

Koogie wrote:
05 Sep 2017 09:21
I certainly hope the Americans counter and demand that we adopt right to work legislation.
Agree.

George
by ghariton
05 Sep 2017 00:30
Forum: Financial News, Policy and Economics
Topic: NAFTA renegotiation
Replies: 19
Views: 462

Re: NAFTA renegotiation

Of course, our government putting forward positions that they know will be rejected by the U.S. may just indicate that our government has concluded that the renegotiation will fail. In that case, the positions on labour, gender rights, etc. may just be for domestic consumption, to try to attract pot...
by ghariton
04 Sep 2017 22:26
Forum: Financial News, Policy and Economics
Topic: NAFTA renegotiation
Replies: 19
Views: 462

NAFTA renegotiation

Second round of talks took place the last three days. Since the outcome of the renegotiation (if any) could affect us all as investors, I thought it might be useful to keep track of proposals and counterproposals. Here's a Canadian proposal that caught my eye: Canadian negotiators are demanding the ...
by ghariton
04 Sep 2017 14:26
Forum: Financial Planning and Building Portfolios
Topic: How to invest a lump sum
Replies: 24
Views: 826

Re: How to invest a lump sum

As koogie says, there are a lot of forms of fixed income. Indeed, there is a large variety of bonds. Some expose you to credit risk, i.e. the issuer could default on the interest or principal. For this corporate bonds are worse than government bonds. Some bonds expose you to market risk (also known ...
by ghariton
03 Sep 2017 17:43
Forum: Retirement, Pensions and Peace of Mind
Topic: Income taxes pushing me towards retirement
Replies: 56
Views: 1751

Re: Income taxes pushing me towards retirement

I'm sure those are sound academic theories. Of course, people have to actually live through these forced transitions. "Low value" jobs may disappear but those people don't conveniently do the same nor can they all be retrained into being "useful". We've been here before, of course. I remember when ...
by ghariton
03 Sep 2017 16:49
Forum: Financial Planning and Building Portfolios
Topic: How to invest a lump sum
Replies: 24
Views: 826

Re: How to invest a lump sum

Man, a lot of you people seem to forget what it is like to be new to investing. My memories of starting to invest are hazy indeed, although I seem to remember stepping right into the bear market of the late 1960s. But I do remember learning to swim, and being ordered into the deep end of the pool a...
by ghariton
03 Sep 2017 15:48
Forum: Financial Planning and Building Portfolios
Topic: How to invest a lump sum
Replies: 24
Views: 826

Re: How to invest a lump sum

Here is my personal summary of the above. If you are contemplating going swimming in a very cold lake, do you jump in, or do you edge in, inch by inch? If this is causing a real dilemma for you, perhaps you shouldn't go in at all.

George
by ghariton
03 Sep 2017 15:07
Forum: Retirement, Pensions and Peace of Mind
Topic: Income taxes pushing me towards retirement
Replies: 56
Views: 1751

Re: Income taxes pushing me towards retirement

Well, let me try to get back on track. Taxes are a wedge between what my client (or employer) pays me and what I get to keep. If my customer finds my services valuable enough, he or she will absorb some or all of that wedge, in the form of higher prices. If not, then I get to absorb the wedge, or in...
by ghariton
03 Sep 2017 13:52
Forum: Retirement, Pensions and Peace of Mind
Topic: Income taxes pushing me towards retirement
Replies: 56
Views: 1751

Re: Income taxes pushing me towards retirement

I am more obsessed with boutique tax credits and special interest exemptions. Our society has been built on a progressive tax system for a long time. It is not going away.... so let's focus instead on closing of loopholes/boutique tax credits. That should help keep MTR brackets lower than they migh...
by ghariton
30 Aug 2017 16:56
Forum: Retirement, Pensions and Peace of Mind
Topic: Income taxes pushing me towards retirement
Replies: 56
Views: 1751

Re: Income taxes pushing me towards retirement

I changed careers in my 50s and became a lawyer. That choice is not for everyone, of course, but I do want to say that changing careers rejuvenated me and made work enjoyable once again. So I second Keith Cowan's suggestion -- look at the possibility of doing something else. Real estate is one possi...