Search found 5436 matches

by ghariton
29 Mar 2017 12:12
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: CPP Deferral debate - Fred Vettese article discussion

You may be confusing strategy with outcome. I;m not sure I'm interpreting you properly. But if the point is that I accepted higher risk by investing in VTI than by leaving the money in the CPP, that's quite correct. I was still working, so I could accept a higher risk with those funds. Others may b...
by ghariton
29 Mar 2017 00:46
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: CPP Deferral debate - Fred Vettese article discussion

So, effectively, one could increase the bonus of deferring the CPP pension by taking some risk with the money used to cover the 10-year gap. Interesting. I haven't run the numbers (I'm recovering from eye surgery again), but my intuition on the interaction of delay and risk would be the opposite. I...
by ghariton
27 Mar 2017 12:41
Forum: Financial Planning and Building Portfolios
Topic: The Implications of Behavioral Finance
Replies: 141
Views: 41691

Re: The Implications of Behavioral Finance

I agree that Kahneman's Thinking Fast and Slow is a great book. Probably the best book for DIY investors to start with. and to re-read from time to time. I found Nudge very disappointing. But then, I find most of Cass Sunstein's books disappointing. They start out with lots of promise, which dissolv...
by ghariton
27 Mar 2017 02:27
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 136
Views: 4131

Re: Housing Bust 2017

The fairest way to deal with this mess would be by removing the capital gains exemption on primary residencies. There is no logical long-term reason why the government should be positively discriminating between different asset types and inducing people to borrow more and spend faster. What politic...
by ghariton
26 Mar 2017 13:01
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: CPP Deferral debate - Fred Vettese article discussion

Longinvest, I'm not sure, but I think that you are implicitly assuming a real discount rate of zero. As the real discount rate increases, the benefits of delay will decrease. It would be interesting to see the sensitivities to the discount rate. I am agnostic about future interest rates, but as you ...
by ghariton
25 Mar 2017 12:01
Forum: Financial Planning and Building Portfolios
Topic: VT vs VXUS + VTI
Replies: 24
Views: 608

Re: VT vs VXUS + VTI

My US Vanguard holdings have too much unrealized cap gains to take the hit, but I mitigated the risk the last several years by byying Canadian equivalents. The key is to stay on top of any changes in how US estate law impacts Canadians and do just enough to stay below the radar. Right now, the thre...
by ghariton
24 Mar 2017 11:27
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 43
Views: 3978

Re: Clippings 2017

It's a reminder that the typical role of bonds it to dampen stock volatility, in a portfolio, and that rising rates are actually good for bonds, as long as the time horizon is longer than the duration. I wholeheartedly agree with the first half of that. But I think that the second part has to be qu...
by ghariton
22 Mar 2017 19:07
Forum: Financial News, Policy and Economics
Topic: Federal Budget 2017 - March 22
Replies: 55
Views: 2662

Re: Federal Budget 2017 - March 22

Inclusion rate for cap gains and div taxation are still in their radar. Yes indeed. However it's difficult to see how that will play out. If they study it over the summer and fall, it's unlikely that they will make substantive changes for the 2017 taxation year. By 2019 they will be in full electio...
by ghariton
22 Mar 2017 17:49
Forum: Financial News, Policy and Economics
Topic: Federal Budget 2017 - March 22
Replies: 55
Views: 2662

Re: Federal Budget 2017 - March 22

Also an end to income sprinkling, i.e. using a CCPC to distribute income through family members who pay at a lower effective tax rate. That's how I funded the children's education and was one of the main reasons I set up a CCPC (the other was to build up retirement funds via retained earnings). Both...
by ghariton
22 Mar 2017 16:39
Forum: Financial News, Policy and Economics
Topic: Federal Budget 2017 - March 22
Replies: 55
Views: 2662

Re: Federal Budget 2017 - March 22

No major tax changes. In particular, no change to capital gains inclusion rate or dividend tax credit. A task force will look at these and report in time for the fall budget update. In practice, that means no changes in the 2017 taxation year. They are worried about what the U.S. will do, and want t...
by ghariton
21 Mar 2017 23:51
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: Clippings 2017

Then I've seen old people in an independent living facility having great interactions with staff and fellow 'inmates' with social teas and coffees, board and card games, etc. I would hate that. Who would I argue with? Give me my books and a high-speed Internet connection any day. And if I ever lose...
by ghariton
21 Mar 2017 19:56
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: Clippings 2017

How much you will need depends on how you intend to finish your days. In the case of me and my wife, we plan to stay in our present house, hiring help as necessary. In the end, it may turn out to be very expensive, but then we likely won't be taking many trips then. If we were to move to a nursing h...
by ghariton
21 Mar 2017 19:41
Forum: Financial Planning and Building Portfolios
Topic: VT vs VXUS + VTI
Replies: 24
Views: 608

Re: VT vs VXUS + VTI

I don't think it much matters. Personally, I use a three-fund portfolio of VTI, VEA and VWO. I have uncrystallised capital gains and see no reason to switch.

George
by ghariton
18 Mar 2017 22:49
Forum: Taxing Situations
Topic: Vanguard Canada ETF tax information
Replies: 16
Views: 382

Re: Vanguard Canada ETF tax information

You can file using an estimate. Once you get your official tax slips, if they differ from your estimate, simply file an amendment. As long as the difference is not too large, and you file the amendment in a timely manner, CRA doesn't seem to care. You may have to do that anyway. TDDI has, in the pas...
by ghariton
16 Mar 2017 13:23
Forum: Financial News, Policy and Economics
Topic: Things to worry about
Replies: 84
Views: 6450

Re: Things to worry about

Multifactor productivity continues to decrease in Canada. Multifactor productivity, measured as output per unit of combined labour and capital inputs, declined 1.0% in 2015. The decline reflected a 0.6% increase in output and a 1.6% gain in the combined inputs of capital and labour. <snip> Multifac...
by ghariton
15 Mar 2017 23:39
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Canadian Banks
Replies: 492
Views: 34417

Re: Canadian Banks

Any ideas on how to turn the call around and upsell the caller? Life is too short. The simple rule is: Never buy from someone who is selling door-to-door and never buy from someone who is upselling you, especially over the telephone, without thinking about it for a day or three. It's about time Can...
by ghariton
14 Mar 2017 20:00
Forum: Taxing Situations
Topic: 7 Myths about the Taxman
Replies: 1
Views: 211

Re: 7 Myths about the Taxman

Myth 2 "evidence of fraud or misrepresentation of income" may be just a choice of words of the author, but there could be quite a murky differentiation between "misrepresentation" and "misinterpretation". I'm not a tax lawyer, but I believe that misrepresentation is deliberately giving CRA informat...
by ghariton
13 Mar 2017 21:43
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Canadian Banks
Replies: 492
Views: 34417

Re: Canadian Banks

Let's say current mortgage rates are between 3%-4% for a 5 year mortgage. Yes sir you can have a 5 year mortgage at 4% or higher maybe 5% not competitive ........ pause but if you move everything you have here then we will give it to you at 3%. Maybe in court this isn't tied selling but in my mind ...
by ghariton
11 Mar 2017 17:07
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Canadian Banks
Replies: 492
Views: 34417

Re: Canadian Banks

Clearly looks like ties selling to me but INAL. It's bundling, not tied selling. Bundling is a discount if you purchase a number of items from different product lines at the same time and you get a discount. For example, you go to McDonald's and buy a "happy meal" of burger, fries and soft dring fo...
by ghariton
11 Mar 2017 16:43
Forum: Financial News, Policy and Economics
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 109
Views: 746

Re: Clippings 2017

An additional complication is taxation. If one has a large RRSP, and will have to make large withdrawals starting at 71, then taking CPP early will result in a lower effective tax rate applying to the payments before 71, and possibly to the payments after 71. Of course, an alternative is to start me...
by ghariton
09 Mar 2017 22:31
Forum: Financial News, Policy and Economics
Topic: Historic Stock Market Levels
Replies: 34
Views: 762

Re: Historic Stock Market Levels

I am also torn about the rumoured increase in capital gains inclusion rates. Is now the time to crystalize and take the tax hit? Once I sell, will I sit on the sidelines? For how long? I think that you are dealing with two separate issues here. The first is whether to crystalize capital gains and p...
by ghariton
09 Mar 2017 12:40
Forum: Financial News, Policy and Economics
Topic: Historic Stock Market Levels
Replies: 34
Views: 762

Re: Historic Stock Market Levels

Agree with P_I and AltaRed. I settled on a buy-and-hold approach around 2004, after having disastrous experiences with both stock picking and market timing earlier. The buy-and-hold strategy saw me through 2008 with a minimum of worry. I expect it would see me through a fifty per cent drop in equity...
by ghariton
08 Mar 2017 12:41
Forum: Financial News, Policy and Economics
Topic: Federal Budget 2017 - March 22
Replies: 55
Views: 2662

Re: Federal Budget 2017 - March 22

As things currently stand, it is mostly pointless to save money and invest into fixed income outside of tax shelters as it leads to negative after-tax real returns. It's called "financial repression", and was government policy for most of the three decades after World War II. It had the neat effect...
by ghariton
08 Mar 2017 00:36
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 43
Views: 3978

Re: Clippings 2017

Using money-weighted returns makes it harder to create a benchmark. Your custom benchmark has to mirror your asset allocation AND your money flow. Makes me glad I use time-weighted returns. :wink: Yes, but when it comes to how much money I have available to spend, it's money-weighted returns that m...
by ghariton
08 Mar 2017 00:27
Forum: Financial News, Policy and Economics
Topic: Federal Budget 2017 - March 22
Replies: 55
Views: 2662

Re: Federal Budget 2017 - March 22

Eliminating tax on capital gains would bring us back 45 years. Presumably the tax on inheritance would also be reintroduced. I have some sympathy for Bernier's position. In fact, I would like to eliminate all income taxes, corporate and personal, and rely on consumption taxes and user charges instea...