Search found 173 matches

by Rooster
02 Oct 2014 15:41
Forum: Financial Planning and Building Portfolios
Topic: Couch potato investing for the last 9 years
Replies: 38
Views: 5694

Re: Couch potato investing for the last 9 years

That's well impressive. Albeit the OP has done considerably better than I have, I've followed a similar course in saving fairly agressively and investing from the get go. I think this shows the importance of having good personal finance habits from the start. Personally, I've been working for 12 years but only have net worth records going back to 2006 and only last year have I kept separate accounting of actual savings (distinguishing from market returns). In any event, the numbers get scewed as we paid off our house early and paid for new cars cash. Of course, since those were paid, savings rate increased considerably but it would be more acurate to amortize those costs over a longer period/include capital repayments in savings. In any eve...
by Rooster
11 Aug 2014 14:43
Forum: Financial Planning and Building Portfolios
Topic: Norbert's gambit - Can$ to US$ or vice versa
Replies: 1785
Views: 325550

Re: Norbert's gambit - Can$ to US$ or vice versa

I've performed norbert's gambit numerous times with tdw, but always within a registered account (rrsp). Will be looking to perform shortly with an unregistered account. Are the operations the same? Anything to take into account? Thanks! Unfortunately the process is not as smooth at TD in a non-registered account. The most foolproof way is to get your account set up for short selling. That way you can short on one side, then sell on the other, wait three days, and then call them to journal the shares over and flatten the position. Otherwise you'll have to call up a rep to journal the shares before you can sell, which can result in a delay with market exposure. (Personally if I didn't have the ability to short, I'd just use DLR and DLR.U, ev...
by Rooster
08 Aug 2014 14:18
Forum: Financial Planning and Building Portfolios
Topic: Norbert's gambit - Can$ to US$ or vice versa
Replies: 1785
Views: 325550

Re: Norbert's gambit - Can$ to US$ or vice versa

I've performed norbert's gambit numerous times with tdw, but always within a registered account (rrsp).

Will be looking to perform shortly with an unregistered account. Are the operations the same? Anything to take into account?

Thanks!
by Rooster
07 Jun 2014 08:36
Forum: Financial Planning and Building Portfolios
Topic: Private Corporation : Advisory Committee Liability?
Replies: 7
Views: 1027

Re: Private Corporation : Advisory Committee Liability?

Directors can incur statutory liability for unpaid wages, unremitted taxes, certain environmental offenses and in certain other limited circumstances. I would not advise anyone joining a board unless they know the compnay's situation well (they have a duty to ask questions and be informed) and the company has a comprehensive directors and officers (D&O) liability insurance. If this is solely an advisory role, director liability would not be applicable. I would however caution that he ensure that the role is not a "de facto" director role, where he would particupate unofficially to board decisions. In such cases, director liability would apply even if he was never formally named to the board ( and worse he would not be an insur...
by Rooster
24 Apr 2014 12:39
Forum: Financial Planning and Building Portfolios
Topic: How are you managing your investments?
Replies: 18
Views: 2274

Re: How are you managing your investments?

My 1% estimate comes from Bill Bernstein. I finally found the reference: The Probability of Success A decade ago, I really did believe that the average investor could do it himself. After all, the flesh was willing, the vehicles were available, and the math wasn’t that hard. I was wrong. Having emailed and spoken to thousands of investors over the years, I’ve come to the sad conclusion that only a tiny minority, at most one percent, are capable of pulling it off. Going OT for a minute, but Bernstein seems to me to be a bit all over the place in that article, notably conflating skills required for active and passive investment and, while favoring low cost passive strategies and reaffirming emh, he states that skilled investors can take adva...
by Rooster
23 Jan 2014 22:23
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

It depends on your years of service and your career mobility. George$ undoubtedly has some examples. But the basic idea is that there are three sources for funding a DB plan: employer contributions, employee contributions and investment returns. As a younger worker, you are only slowly building up service credits, while still paying the same employee contribution, with the employer match. Effectively, your contributions, plus the employer contributions, are funding those who have higher service credits: same contributions, but different payouts. But I'm not an expert. The contributions are a % of salary though, not fixed amount. Do you mean that since benefits will be based on highest salary for last x number of years (instead of salary at...
by Rooster
23 Jan 2014 21:12
Forum: Retirement, Pensions and Peace of Mind
Topic: Suggest a broker that allow US stocks in rrsp account
Replies: 37
Views: 3036

Re: Suggest a broker that allow US stocks in rrsp account

1.04600 also quoted for dec 27th distributions (vti, vwo, vxus). I may be doing this wrong, but i just look at the drip line in recent activity. For vxus, i got 8 shares and was debited $434.37. So, an average cost per share of $54.30. On dec 27, vxus market price was 51.9. So i figured i was "dinged" $2.40 per share or 4.6% (likely 2.3% on the conversion to cad and another 2.3% on the reconversion to usd). Is this a wrong way to look at it? Seems to me you weren't dinged anything. They took your USD divs, converted them at a rate(pick one, anyone will do) and then bought 8 shares with those CAD funds using the same rate . Net cost to you, nada. You got dinged 2.x% on the residual cash that did not get DRIPed but that's because o...
by Rooster
23 Jan 2014 20:54
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

Interesting read parvus, thanks for taking the time.

A question, you mention (and i've heard before) that DBs are a wealth transfer vehicle from younger workers to older, but don't quite see it. Can you elaborate?
by Rooster
23 Jan 2014 13:30
Forum: Financial Planning and Building Portfolios
Topic: Shame shame … market timing
Replies: 73
Views: 5274

Re: Shame shame … market timing

George,

You're a great poster (like many others). Your insights are greatly appreciated.

On that note, with a roughly 20 year horizon, is there strong evidence that market timing works? What would be useful valuation points? Anything that could be pointed towards specifically or is it just mean reversion and the farther you are from mean the most you have to gain long term?
by Rooster
23 Jan 2014 13:15
Forum: Financial Planning and Building Portfolios
Topic: Shame shame … market timing
Replies: 73
Views: 5274

Re: Shame shame … market timing

Thanks AltaRed. I think what bugs me most is that it's not rules based...simply because I can't find a rules based approach to market timing that is supported by research. ;). It's gut feelingish. Had read an article some time that left an impression (here it is if anybody is interested, graph on page 4 was most interesting in my view: http://www.financialarchitectsllc.com/Ruminations%20Files/Ruminations%20on%20Market%20Timing%20with%20the%20PE10.pdf). Was on PE10 (which itself i only use as a broad indicator with limitations) and suggested there was little alpha (if not mostly loses) to be gained by sitting out (and holding out is a limited version of sitting out) at differed valuation points. From that, i though "meh, not worth it......
by Rooster
23 Jan 2014 13:00
Forum: Retirement, Pensions and Peace of Mind
Topic: Suggest a broker that allow US stocks in rrsp account
Replies: 37
Views: 3036

Re: Suggest a broker that allow US stocks in rrsp account

1.04600 also quoted for dec 27th distributions (vti, vwo, vxus).

I may be doing this wrong, but i just look at the drip line in recent activity. For vxus, i got 8 shares and was debited $434.37. So, an average cost per share of $54.30. On dec 27, vxus market price was 51.9. So i figured i was "dinged" $2.40 per share or 4.6% (likely 2.3% on the conversion to cad and another 2.3% on the reconversion to usd). Is this a wrong way to look at it?
by Rooster
23 Jan 2014 12:37
Forum: Financial Planning and Building Portfolios
Topic: Shame shame … market timing
Replies: 73
Views: 5274

Re: Shame shame … market timing

Come up with a Plan you are comfortable with. Follow it. This. Blind periodic purchasing as per asset allocation (perhaps value averaging if you are more conservative) is probably best. Knowing that, I do the same as the op. Didn't sell anything, but hardly bought new equities last year as I didn't like valuations causing me to be sitting on more cash/short term bonds than my AA calls for. Only purchases I made last year were in asset classes where valuations had declined/not gone up too much (reits, emerging markets, some dividend stocks). I guess it's a non principled (rules based) extreme version of value averaging. Guess i'm a closet value investor (in gut reaction, not necessarily in theory). So then, what is your plan? How come you'r...
by Rooster
23 Jan 2014 12:29
Forum: Retirement, Pensions and Peace of Mind
Topic: How much is enough 2014
Replies: 313
Views: 27843

Re: How much is enough 2014

Personally, we are looking/planning to achieve a retirement income around 100-120k (pre-tax for taxable streams) household which is similar to our current spending (household income of 225k, minus savings and accounting for higher tax rates). Figured drop in work related expenses / owning one car instead of two, etc. would be roughly compensated by extra travel/hobbies. I hope to get there by 55. At a 3% withdrawal rate, that's in the $3M-$4M range. DB's (which are -little known fact- much cheaper to fund same withdrawal amount as longevity risk is pooled and therefore set to mean longevity and not "individual worst (best?) case scenario" and therefore can use higher withdrawal rate) should pay out some $75k at that age (both of u...
by Rooster
23 Jan 2014 11:55
Forum: Retirement, Pensions and Peace of Mind
Topic: Suggest a broker that allow US stocks in rrsp account
Replies: 37
Views: 3036

Re: Suggest a broker that allow US stocks in rrsp account

Supposedly TDW now auto-washes USD DRIPs from US-listed stocks. They still don't auto-wash DRIPs from Canadian stocks that pay USD dividends. Wow, that's different. Do I have to ask them specifically for each of my stocks to get the Auto-wash? You don't. As long as your account is set to auto wash and the securities are set to DRIP, it should happen automatically. Seems to have started sometime in December based on some CMF threads I seeked out after reading this one. Cash dividends still get dinged the TDDI spread(around 1.5%). My december VTI/VXUS/VWO distributions (with drip and auto-wash activated), seemed to have been dinged by fx conversions to cad and back. I was actually upset enough (as they had previously said they would get usd ...
by Rooster
23 Jan 2014 11:27
Forum: Financial Planning and Building Portfolios
Topic: Shame shame … market timing
Replies: 73
Views: 5274

Re: Shame shame … market timing

deaddog wrote:Come up with a Plan you are comfortable with.

Follow it.
This. Blind periodic purchasing as per asset allocation (perhaps value averaging if you are more conservative) is probably best.

Knowing that, I do the same as the op. Didn't sell anything, but hardly bought new equities last year as I didn't like valuations causing me to be sitting on more cash/short term bonds than my AA calls for. Only purchases I made last year were in asset classes where valuations had declined/not gone up too much (reits, emerging markets, some dividend stocks).

I guess it's a non principled (rules based) extreme version of value averaging. Guess i'm a closet value investor (in gut reaction, not necessarily in theory).
by Rooster
23 Jan 2014 08:08
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

I thought (could well be wrong) that discount rates matched gov of canada bonds as that reflected the "risk free" nature of the earned annuity to the beneficiary. Returns achieved by the plan, increase in liabilities, plan solvency, etc. is technically only pertinent to the employer, the employee simply has an earned right to a future annuity. From the employee's perspective, he has a right which is discounted at a risk free rate equal to gov bonds (so i thought). When I transferred my previous earned benefit to a lira (from a private employer), the rate was the then 10 year gov bond rate of 1.8% for 10 years and 2.3% thereafter. At that time, the plan solvency (on a liquidation basis) was in the neighborhood of 85% and the plan u...
by Rooster
22 Jan 2014 17:12
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

Which is essentially what I said.... albeit I also agree with your last point if the pension is vested and one can 'walk' with a LIRA, etc. on one's way to a new adventure whatever it may be. All in all (sorry for being so wordy), I think it is a particular beast that needs to be considered on it's own (but still considered). I mentioned that I consider it bond-like for asset allocation purposes, but really I consider the default risk to be higher with the DB than gov of Canada bonds (even if the DB is from a fed crown corp). Push comes to shove, governments can "default" on promised annuities with less consequences than defaulting on bonds. Actuaries seem to link discount rates to 10 year bonds, so I figure they consider them as...
by Rooster
22 Jan 2014 15:51
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

I consider the commuted value of my DB as part of my bond allocation in my overall portfolio. The goal of my long term portfolio is funding retirement and I don't see why I should ignore DB in the assessment. For asset allocation purposes perhaps, but for net worth? They are distinct and different, and pensions have highly variable net worth values, e.g. age, mortality, etc. My pension has a net worth of approximately 0 if I fall dead at the PC in the next 2 minutes, and not a lot more if I fall dead next year. I think one has to consider why they want to know net worth in the first place. If for estate purposes (such as those raised by the "fall dead" arguments), I agree they have limited value beyond survival benefits. If to gi...
by Rooster
22 Jan 2014 14:25
Forum: Financial Planning and Building Portfolios
Topic: Net Worth Calculations: How to Value a Pension Plan
Replies: 43
Views: 20997

Re: Net Worth Calculations: How to Value a Pension Plan

I consider the commuted value of my DB as part of my bond allocation in my overall portfolio. The goal of my long term portfolio is funding retirement and I don't see why I should ignore DB in the assessment.
by Rooster
22 Jan 2014 12:41
Forum: Financial Planning and Building Portfolios
Topic: 2013 Investment Portfolio Results
Replies: 127
Views: 6995

Re: 2013 Investment Portfolio Results

Equities returned an irr of 27.6% (incl. fx gains) and overall (excluding cash and hisa which i do not consider as "investments", rather as emergency fund type reserves) 17.8%.

I'm roughly at 60/40 equities to fixed income (including some usd fixed income which had nice fx gains). I'm comfortable going up to 100% equities for long term investments (relatively young with DB pension, as does my wife), but have been sitting on FI in LIRA that I opened this year and hardly deployed as I didn't like valuations. That will teach me to be too patient. ;)
by Rooster
24 Aug 2013 08:37
Forum: Financial Planning and Building Portfolios
Topic: Need a recommendation for an Ottawa CFP
Replies: 9
Views: 2230

Re: Need a recommendation for an Ottawa CFP

Can anybody recommend a fee only advisor in the montreal area? I get a number of inquiries from third parties from time to time.
by Rooster
24 Aug 2013 01:58
Forum: Financial Planning and Building Portfolios
Topic: Risk = ??
Replies: 491
Views: 108503

Re: Risk = ??

Then that makes it easier.

:)
by Rooster
24 Aug 2013 01:33
Forum: Financial Planning and Building Portfolios
Topic: Risk = ??
Replies: 491
Views: 108503

Re: Risk = ??

Shakespeare wrote:
My risk tolerance at my level of net worth is considerably higher than it would be at a quarter of my current net worth.
I don't see why I should take on a high level of risk.
Basically down to objectives. Lifestyle you want (and correspondingly risk level you're willing to accept for expected added spending power) and, beyond that, estate size if that's of any importance. Pretty personal question. Don't think there's an objective right or wrong answer - except maybe not quantifying it and making a rational decision on it (and therefore take on too much ortoo little risk with respect to objectives).
by Rooster
24 Aug 2013 01:26
Forum: Financial Planning and Building Portfolios
Topic: Risk = ??
Replies: 491
Views: 108503

Re: Risk = ??

AltaRed wrote:
SQRT wrote:I think I have a very high tolerance for risk. On several bad days in 2008-2009 our total portfolio (including employee options) was down over $1million. Didn't do anything but fret. Good thing too.
Those with multiple millions in retirement are not in the same league as the 'water treader' when it comes to risk tolerance. Half of $2million still buys a lot of marbles in retirement, more so than half of $250k. My risk tolerance at my level of net worth is considerably higher than it would be at a quarter of my current net worth.
Never know if I'm on the can afford to take more risk or don't need to take more risk side.
by Rooster
28 May 2013 21:38
Forum: Financial Planning and Building Portfolios
Topic: Where are you in your investing life cycle?
Replies: 64
Views: 4455

Re: Where are you in your investing life cycle?

Personally, I'd be inclined to qualify anybody withdrawing from assets to live on as in the withdrawl phase. This regadless of whether that person is still net accumulating. That person would be accumulating more if not withdrawing. To me, they are in the withdrawing phase. Withdrawing does not mean depletion.