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by Norbert Schlenker
17 Jan 2018 14:35
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 95
Views: 3440

Re: How Did You Do in 2017?

Do you know the source(s) of your outperformance? Inquiring minds are curious. :wink: There's a lot of annual tracking error relative to any benchmark (I use FPX Balanced because it's easy; 20 years of that is around 6%). In the early years, it was because I was a fairly frenetic trader. For the pa...
by Norbert Schlenker
16 Jan 2018 14:37
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Leasehold Condos
Replies: 17
Views: 377

Re: Leasehold Condos

The discount for leasehold with 50-60 years to run on the lease appears to have been accepted in the Musqueam reasons as on the order of 12-15%. The condo you linked is older, built 53 years ago, so maybe the ground lease is 60 years old, i.e. maybe 40 years to run. This is pure guesswork on my part...
by Norbert Schlenker
16 Jan 2018 14:28
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 95
Views: 3440

Re: How Did You Do in 2017?

The USD/CAD exchange rate on 2016-12-30 was 1.3427; on 2017-12-29 it was 1.2545. USD returns should be adjusted by a factor 1.2545/1.3427 = 0.9343. Here are the total returns of each component in 2017, as published on the sponsor's website. VTI: 21.2% in USD ... 13.2% in CAD VEA: 26.5% in USD ... 18...
by Norbert Schlenker
16 Jan 2018 12:49
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 95
Views: 3440

Re: How Did You Do in 2017?

couponstrip wrote:
16 Jan 2018 12:32
Equal contributions to VTI/VEA/XIC. 100% equity. Our returns were 18.7% in 2017 including dividends.
Measuring stick in USD, presumably?
by Norbert Schlenker
16 Jan 2018 12:45
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Leasehold Condos
Replies: 17
Views: 377

Re: Leasehold Condos

Reading the actual 2017 reasons in the Musqueam case is enlightening. While much of it deals with discounts for on-reserve land (and discounts by the court for employing a biased "expert"), there are occasional unrebutted glimpses of what constitutes an appropriate discount for leasehold vs freehold...
by Norbert Schlenker
15 Jan 2018 17:43
Forum: Retirement, Pensions and Peace of Mind
Topic: Retirement withdrawal strategy considering my unusual situation? (Long post)
Replies: 24
Views: 963

Re: Retirement withdrawal strategy considering my unusual situation? (Long post)

Her entire income has been managed to keep her in the first bracket, maybe slightly into the second bracket, for ten years. It might be helpful if you can share how this income was managed? We can all speculate but it would be better to have some facts... From what I could tell, the withdrawals wer...
by Norbert Schlenker
15 Jan 2018 17:35
Forum: Taxing Situations
Topic: US Resident Moving to Canada - Deemed Acquisition Question
Replies: 3
Views: 86

Re: US Resident Moving to Canada - Deemed Acquisition Question

You may have more IRS problems than you think. If you're a "covered expatriate" (easiest test: net worth > US$2MM), you: a) have to file Form 8854 with a final 1040 after you give up the green card; failure to file is bad, bad, bad, b) pay capital gains taxes as if all assets are sold, per your allu...
by Norbert Schlenker
13 Jan 2018 17:43
Forum: Retirement, Pensions and Peace of Mind
Topic: Retirement withdrawal strategy considering my unusual situation? (Long post)
Replies: 24
Views: 963

Re: Retirement withdrawal strategy considering my unusual situation? (Long post)

Interesting questions and replies above. I'll throw in a couple of observations. 1. It's not clear to me that the wife's choice to defer collecting the pension is correct. It's borderline advantageous at best. Taking the pension immediately will stack up $64,000 + investment earnings over the next f...
by Norbert Schlenker
13 Jan 2018 17:07
Forum: Financial Planning and Building Portfolios
Topic: How Did You Do in 2017?
Replies: 95
Views: 3440

Re: How Did You Do in 2017?

These are money-weighted returns. Good returns in the recent years skew the long-term record. 10-, 15- and 20-year returns are virtually identical for the same reason. Early returns matter little due to small portfolio size. Recent returns overwhelm the record. You're wise to realize the error poss...
by Norbert Schlenker
13 Jan 2018 16:59
Forum: Financial Planning and Building Portfolios
Topic: Lessons learned and mistakes made
Replies: 39
Views: 904

Re: How Did You Do in 2017?

As Buffet mentions in almost every talk, errors of omission where one ought to have known better are to be counted as mistakes. The fact you have a large and/or concentrated position implies that you 'know better' or you have no business owning said asset. The fact that most all of us missed out on...
by Norbert Schlenker
13 Jan 2018 16:53
Forum: Under the Mattress: Protecting Your Money
Topic: Important change to the Amazon.ca Rewards Visa Card program
Replies: 39
Views: 931

Re: Important change to the Amazon.ca Rewards Visa Card program

Thanks for the heads up. I had no idea and have received no letter. In fact, they just mailed me a replacement card - expiry 01/22 - to replace my 01/18 card, which is a bit of a left hand not knowing what the right hand is doing.
by Norbert Schlenker
13 Jan 2018 16:49
Forum: Taxing Situations
Topic: Moving private assets or sole proprietorship with you?
Replies: 3
Views: 183

Re: Moving private assets or sole proprietorship with you?

I think you're overthinking this. If the business's value is in YOUR head, then Canada has no plausible way of assessing tax on that value when you get on the plane to Nassau.
by Norbert Schlenker
13 Jan 2018 16:47
Forum: Taxing Situations
Topic: Investment accounts in Canada while working in US
Replies: 3
Views: 74

Re: Investment accounts in Canada while working in US

If the Canadian financial institutions holding your accounts don't realize that you're in the US - and why should they given that you're using an unchanged Canadian address - chances are that there's no problem holding or trading the accounts. However, you may be setting yourself up for tax woes on ...
by Norbert Schlenker
06 Jan 2018 15:21
Forum: Financial Planning and Building Portfolios
Topic: Lessons learned and mistakes made
Replies: 39
Views: 904

Re: Lessons learned and mistakes made

Some lessons learned, and some pondering for the coming year ... If you don't pay attention in a bull market, chances are you'll be shocked at how well things turn out. I did my first trades in two years yesterday - other than gambits for FX - after finally looking at overall asset allocation. I'm a...
by Norbert Schlenker
06 Jan 2018 14:40
Forum: Retirement, Pensions and Peace of Mind
Topic: The Plight of the Y2K Retiree
Replies: 89
Views: 8815

Re: The Plight of the Y2K Retiree

So at 3.33/mo and assuming current balance is 600 (chart is not detailed enough for more accuracy) it would be a 6.66% withdrawal rate at this point. Yes, but with 12 1/2 years to go, 6.7% isn't an absurd proposal. Ah yes, my error. Could you brew up a nominal version of the graph? y2k retiree nomi...
by Norbert Schlenker
04 Jan 2018 20:13
Forum: Retirement, Pensions and Peace of Mind
Topic: The Plight of the Y2K Retiree
Replies: 89
Views: 8815

Re: The Plight of the Y2K Retiree

I suspect the balanced investors aren't particularly happy at this point having 'lost' ~40% of their money. Mind you some draw down has to be expected. If you're 17 1/2 years into a 30 year plan and 60% of (the real value of) what you started with is still on hand, that's not awful. What is the yea...
by Norbert Schlenker
04 Jan 2018 15:17
Forum: Taxing Situations
Topic: RIF USD account
Replies: 10
Views: 200

Re: RIF USD account

Most these days allow USD holdings in an RRSP or RRIF. What are you looking for? Payments in USD maybe?
by Norbert Schlenker
04 Jan 2018 15:14
Forum: Retirement, Pensions and Peace of Mind
Topic: The Plight of the Y2K Retiree
Replies: 89
Views: 8815

Re: The Plight of the Y2K Retiree

17 1/2 years in from the tech bubble peak, nobody is ruined yet.
y2k retiree.png
by Norbert Schlenker
04 Jan 2018 01:03
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stock/Bond/Index/Fundamental/Asset Class/Quotes - Sources
Replies: 468
Views: 85677

Re: Stock/Bond/Index/Fundamental/Asset Class/Quotes - Sources

2017 Canadian dollar total returns for an array of asset classes have been added to my Libra spreadsheets, which hang off this page. Nominal returns only at the moment; once December 2016 inflation figures are published, I will update with real returns.
by Norbert Schlenker
30 Nov 2017 15:35
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Rate reset preferred share ladder?
Replies: 16
Views: 503

Re: Rate reset preferred share ladder?

I'm not sure I understand how you justify replacing bonds with preferred shares. In 2008-2009 and 2015-2016, I would have been quite happy to pay a little more in taxes for the privilege of owning bonds. Wouldn't you? Not for me. My taxable portfolio is chock-a-block with fixed rate preferreds and ...
by Norbert Schlenker
02 Nov 2017 19:14
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BMOIL offer ... up to $4,250 cash back
Replies: 2
Views: 408

BMOIL offer ... up to $4,250 cash back

I have no idea whether this is generally available or targeted to select individuals. One account only; funds have to stay at BMOIL until next August. At the $500k level, it's a 0.32% sweetener. Get up to $4,250 cash back when you invest in a new BMO InvestorLine Self-Directed account.* Getting star...
by Norbert Schlenker
09 May 2017 15:43
Forum: Taxing Situations
Topic: Journaling across accounts and T5008
Replies: 2
Views: 189

Re: Journaling across accounts and T5008

Ask your broker how/if they would report it. My view is that it shouldn't be as there is no disposition of the property.
by Norbert Schlenker
08 May 2017 18:39
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20233

Re: Clippings 2017

At the end of 2016, over half of US households have abandoned landline phones. I would be interested in seeing similarly definitive Canadian statistics.
by Norbert Schlenker
07 May 2017 14:47
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Help me pick a broker and some questions
Replies: 3
Views: 313

Re: Help me pick a broker and some questions

Hey, I have ~250k invested between a non-registered account and my TFSA. I currently hold high fee mutual funds through an adviser and I need to change ASAP. Questions: 1) I know I want to open brokerage account with one of the big banks. I think I've narrowed it down to TD DI vs BMO IL (unless som...
by Norbert Schlenker
07 May 2017 14:26
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Struggling to work out how to work out the Effective Annual Rate in this scenario
Replies: 1
Views: 176

Re: Struggling to work out how to work out the Effective Annual Rate in this scenario

Welcome to FWF, but I wonder (because of the £) if you're asking for help with O-level maths homework.

Here's a hint. A treasury bill has no coupon, i.e. pays no interim interest, and is sold at a discount to par.