Search found 650 matches

by GreatLaker
25 Mar 2024 16:33
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 416

Re: VCIP (bonds) - why so awful?

BRIAN5000 wrote: 25 Mar 2024 14:37 VSB purchased July 18 2017 still down 7.31% (It may not have been dripped the whole period, can't remember)
According to Vanguard website, VSB as of end of Feb has 5 yr +1.3% and 10 year +1.4%. Value of $10k chart shows +9% since early July 2017.

VSB price is down about 6% from 2017-05-05 to 2024-03-22.
by GreatLaker
25 Mar 2024 14:30
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 416

Re: VCIP (bonds) - why so awful?

For a longer perspective on bond performance look at the value of $10k for iShares XBB from its inception date. https://www.blackrock.com/ca/investors/en/products/239493/#/ (Can't provide a direct link b/c it's a pop-up window) There is steady growth from inception in 2000 to 2014, largely due to declining interest rates, then it levelled off from 2014 to 2018 as interest rates bottomed out. Then significant growth from late 2018 to summer 2020 followed by a corresponding decline until late 2022 as interest rates were lowered due to COVID among other things, then raised to control inflation. XBB did what would be expected in response to changing interest rates. Investors only looking at the last 5 years would see terrible returns, but a lon...
by GreatLaker
02 Mar 2024 09:36
Forum: Taxing Situations
Topic: Delayed tax statement - MF in a cash account
Replies: 20
Views: 717

Re: Delayed tax statement - MF in a cash account

All the securities that the MF holds have to report their tax information before the MF can do its own reporting, hence the month later deadline for T3s.
by GreatLaker
01 Mar 2024 17:53
Forum: Community Centre
Topic: RIP 2024
Replies: 34
Views: 2816

Re: RIP 2024

Brian Mulroney, 84 From Peter Mansbridge's Good Talk Podcast today: In late 1993, half a year or so after Brian Mulroney stepped down as PM, a man walked up to the PM's residence at 24 Sussex Drive and knocked on the door. A Mountie answered and said may I help you? The man said he was there to see Prime Minister Mulroney. The Mountie politely said I'm sorry sir, Mr. Mulroney no longer lives here, in fact he is not the Prime Minister any more. The man said thank you and went on his way. The next night the same guy knocks on the door at 24 Sussex and tells the same Mountie he is there to see Prime Minister Mulroney. The Mountie politely said Brian does not live there and is not the Prime Minister any more, so the man went on his way. The ni...
by GreatLaker
29 Feb 2024 19:19
Forum: Taxing Situations
Topic: Are MERs tax deductible expenses?
Replies: 16
Views: 1001

Re: Are MERs tax deductible expenses?

MERs are not tax-deductible for you. They are deductible by the mutual fund trust which actually pays them so you get an indirect benefit. If you pay an advisor a separate fee for advice on unregistered funds, you can claim a deduction for that. more info here Scott Ronalds of Steadyhand posted similar info in a blog post: Management Fee Deductibility - Clearing the Air The fact is, there is no advantage to investors whether the management fee is charged within a fund or billed outside of a private investment account, except in rare circumstances. The structure of most mutual funds is such that they allocate all realized capital gains, dividends and interest income to unitholders in the form of distributions. This income represents a taxab...
by GreatLaker
22 Feb 2024 21:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: TD Direct Investing (was Waterhouse) Service
Replies: 3927
Views: 433381

Re: TD Direct Investing (was Waterhouse) Service

Still says 0 for how many shares of VCN I got through my DRIP Trade Date Settle Date Description Action Quantity Price Commission Net Amount 14 Feb 2024 09 Jan 2024 VANGUARD FTSE CDA ALL ETF TXPDDV -y,yy - - $xxx.xx 14 Feb 2024 09 Jan 2024 VANGUARD FTSE CDA ALL ETF DRIP 0 - - -$xxx.xx where $xxx.xx is the same amount for both (ie: not adjusted for the cash remainder after whole shares are purchased). I don't track things well enough to know if my holdings actually got incremented or not. It's a reinvested (non-cash) distribution. They issue partial units so there is no leftover cash. Then because ETFs don't issue partial units they immediately do a consolidation to reduce the number of units back to what they were before the distribution. ...
by GreatLaker
18 Feb 2024 17:12
Forum: Retirement, Pensions and Peace of Mind
Topic: Decumulation? Really?
Replies: 94
Views: 5662

Re: Decumulation? Really?

About delaying QPP, you are not worried about adding years of zero earnings to your record after age 65? The above Q was about delaying QPP, but here is what Doug Runchey of DR Pensions Consulting's comment on the cost of additional zero earning years vs the benefit of deferring CPP: https://www.theglobeandmail.com/investing/personal-finance/article-retiring-early-or-late-heres-how-your-cpp-benefits-could-be-affected/ It might sound like the problem for early retirees is delaying CPP and thereby adding zero-earnings years. What if you start CPP immediately upon early retirement – would that give you the best chance at maximizing benefits? Mr. Runchey said you still do better as an early retiree if you wait until 65 or later to start your b...
by GreatLaker
11 Feb 2024 17:21
Forum: Retirement, Pensions and Peace of Mind
Topic: Retireware software going out of business. Replacement?
Replies: 33
Views: 7832

Re: Retireware software going out of business. Replacement?

chlomarand wrote: 11 Feb 2024 11:45 Thank you for the reply. What I'm most interested is determining the optimal withdrawal strategy (TFSA / RRSP / Non registered) taking into account tax implications. It sounds like it can help me with that. I think I'll give it a shot!
I use MoneyReady and find that it is a great app. The developer is responsive to inquiries and their forum. With a paid subscription it has optimization tools such as when to take CPP and which accounts to draw from when.

Any of these planning tools take considerable effort to learn and enter data accurately. For example different rates of return can be entered for each security for capital gains, interest, dividends, RoC etc. It does give historical values for those returns for many securities.
by GreatLaker
08 Feb 2024 16:01
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Basic ETF Portfolio - What Would It Include?
Replies: 17
Views: 1669

Re: Basic ETF Portfolio - What Would It Include?

I think you missed that I was making fun of Mr. Buffett's silly quiz. <serious type=pretty> Why is his quiz "silly?" He makes an important point in a very understandable way about the behaviour of all-too-many "investors." </serious> The issue and solution are simple to explain. Stocks have a strong tendency to go up over long time periods (5+ years), but over shorter time periods they can fluctuate wildly due to economic conditions and investment industry hype. Holding on to your investments when prices drop, and buying more if you have money available has been shown over decades to be a successful tactic, and usually gives better results than trying to guess where the market is going and modifying your portfolio. Just...
by GreatLaker
08 Feb 2024 14:10
Forum: Financial Planning and Building Portfolios
Topic: How did you do in 2023?
Replies: 97
Views: 7491

Re: How did you do in 2023?

I am an index investor. I track my rate of return to compare it to a plan that uses rate of return to project future income and assets. If my rate of return drops below my target for more than a couple of years I would consider lowering my expenditures.

Plus it's fun! Well maybe not fun, but there are worse hobbies for a retiree. :geek: :thumbsup:
by GreatLaker
08 Feb 2024 10:33
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Basic ETF Portfolio - What Would It Include?
Replies: 17
Views: 1669

Re: Basic ETF Portfolio - What Would It Include?

Bylo Selhi wrote: 08 Feb 2024 08:18 I think you misunderstand what he's saying.
I think you missed that I was making fun of Mr. Buffett's silly quiz.

I fixed it by putting the rarely used [humour][/humour] HTML tags around my post :rofl:
by GreatLaker
07 Feb 2024 22:44
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Basic ETF Portfolio - What Would It Include?
Replies: 17
Views: 1669

Re: Basic ETF Portfolio - What Would It Include?

I don't see were the value investors had been very successful over the past 15 years. A lot of my experience with value investing is a value trap. In the age of the internet and technology there is a lot of disruption and it is not hard to find value traps. People get concerned about a few stocks dominating the S&P 500 And other broad based index's. I suspect if these high flyers turned south other stocks would emerge and replace them. Back 40 years ago people might have been fretting about the influence of IBM,Nortel, Blackberry,GE, SunMicrosystems, Lucent and some others. Funny thing their importance has largely disappeared and been replaced with others. I think one might use the term creative destruction. Value hasn't been very succ...
by GreatLaker
07 Feb 2024 16:44
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Basic ETF Portfolio - What Would It Include?
Replies: 17
Views: 1669

Re: Basic ETF Portfolio - What Would It Include?

Warren Buffett's Quiz [humour] WBuffett's quiz is silly. I learned long ago to appreciate the sage wisdom of billionaires, but their investment advice often misses the mark for regular Joes that are not billionaires. There are some fundamental differences between investments and hamburgers or cars. When you buy a car you expect it to depreciate in value. You are not depending on its price to rise to fund your future financial needs. You don't have to worry about your car going through a long bear market in automotive prices that could ruin your retirement if it was severe enough. See The Plight of the Y2K Retiree Jeez... how did that guy ever get to be a billionaire with such a fundamental misunderstanding of the difference between hamburg...
by GreatLaker
06 Feb 2024 06:56
Forum: Financial News, Policy and Economics
Topic: Retirees and the market
Replies: 30
Views: 2289

Re: Retirees and the market

If one desired to leave an inheritance, then risk aversion can also increase with time, especially late in life. They would want to avoid a late market crash from which their portfolio may never recover. I was POA on my mother's accounts and she had some risky assets which I gradually moved to fixed assets and HISA very late in her life because I could not stomach the possibility of telling the other beneficiaries there was significantly less in the estate because of a market crash*. I was thinking of a 2000 or 2008 drawdown. The article has a lot of scary talk, but nothing on good portfolio design or matching asset allocation to risk tolerance. *Yes the assets could be left in kind, but I think in the general populace, in-kind bequests wou...
by GreatLaker
02 Feb 2024 14:04
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

OptsyEagle wrote: 02 Feb 2024 09:46
GreatLaker wrote: 02 Feb 2024 09:32 I've started OAS already, but definitely deferring CPP to 70. CPP + OAS will be about $28k of annual inflation adjusted lifetime income.
Until the 1st spouse dies.
No spouse. Those are my numbers for OAS at 65 and CPP at 70 (with CPP from Longinvest's CPP-QPP spreadsheet). I'll get about 85% of full CPP x 1.42 when taken at 70. I did, however, forget to include above calculations that I will have some but not all OAS clawed back. OAS clawback does not even start until almost $91k.
by GreatLaker
02 Feb 2024 09:32
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

I've started OAS already, but definitely deferring CPP to 70. CPP + OAS will be about $28k of annual inflation adjusted lifetime income. :D

This article says only 2.1% of CPP recipients start taking it at age 70 or later.
Are Most People Taking CPP Early Or Late?
by GreatLaker
31 Jan 2024 13:20
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Principal residence questions
Replies: 20
Views: 1303

Re: Principal residence questions

If House A is declared as principal residence for all the years it was owned then it just needs to be declared as such and tax software should guide you through the return. The software should create a T2091 form on the return.

When house B is sold it will be a bit more complex. The Adjusted Cost Base of the house is needed and it would be declared as principal residence only for the years starting the year House A is sold. Cost of additions and upgrades can be added to the cost base (but not including any normal upkeep and maintenance). Any capital gains on House B would be prorated so only the years before it was principal residence would be taxable.

Minor edits for clarity.
by GreatLaker
31 Jan 2024 13:03
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

fireseeker wrote: 31 Jan 2024 11:43 I don't think I answered this question well.
The difference between the money compounding in a deferred annuity vs. in a RIF is that the RIF monies will be subject to mandatory annual withdrawals after age 71.
Got it. Thanks.
by GreatLaker
30 Jan 2024 19:55
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

Thanks Fireseeker, My current thought on delaying the LIRA conversion is that it may have a small benefit, but the cost is essentially zero. I lose a bit of flexibility in timing of withdrawals but that is inconsequential because I also have other assets. I can draw from RRIF or LIF or both. So with small possible gains but inconsequential costs, it's a winning the right tactic. I will delay CPP to 70, so that and the LIRA gives me some extra retirement security. Annuitizing is something I plan to consider later, in my late 70s. Most (all?) annuities are not inflation indexed so delaying lessens the risk of inflation eroding the real payout. It also would give me a better idea of my financial situation and whether I even need to annuitize a...
by GreatLaker
30 Jan 2024 16:03
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Basic ETF Portfolio - What Would It Include?
Replies: 17
Views: 1669

Re: Basic ETF Portfolio - What Would It Include?

Q 1 - What would a basic ETF global portfolio be comprised of? I have a Vanguard S&P 500, and a Vanguard Cdn TSE (which has done nothing for well over a year....). Want to add some depth to the ETF side of the portfolio. Vanguard VCE (TSX large cap) and VCN (TSX all cap) both have 1, 3 and 5 year returns as of Dec 31 of ~10% or higher. If that's your idea of doing nothing for well over a year, how would you define doing something? Those numbers are dwarfed by US market returns, which have been driven by tech stocks. A lot of investors are now buying all-in-one asset allocation ETFs xBAL, xGRO, xEQT funds from iShares, Vanguard & BMO covering global equities and bonds. Since you already have separate Can and US ETFs do you want to k...
by GreatLaker
29 Jan 2024 13:14
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Principal residence questions
Replies: 20
Views: 1303

Re: Principal residence questions

Home A is worth about 4 times home B. Home A was bought more than 40 years ago. Home B was bought about 10 years ago. What really counts is the increase in value that results in taxable capital gains. Home B could be designated as principle residence since it was purchased, but then 10/40ths of the gain on Home A would be taxable in the year it is sold. Nobody will know the optimum answer until some time in the future, but it sounds like declaring Home A as principal residence for all the years it has been owned makes sense. Your original post did not mention using either home as a rental property so I only mentioned that in passing in my first reply. If either of the homes was ever used as a rental property (other than renting to a spouse...
by GreatLaker
28 Jan 2024 20:11
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Principal residence questions
Replies: 20
Views: 1303

Re: Principal residence questions

After selling house A, can he declare house B to be his principal residence (in order to pay less tax on the capital gain when he sells house B sometime in the future) even though he would spend 60% of his time at the apartment and 40% at house B? I don't think anyone has addressed your 60/40 question that I bolded above. CRA uses the "Ordinarily Inhabited Rule" to determine if a place is occupied enough to be declared as a principal residence. The ordinarily inhabited rule The ordinarily inhabited rule 2.10 Another requirement is that the housing unit must be ordinarily inhabited in the year by the taxpayer or by his or her spouse or common-law partner, former spouse or common-law partner, or child. 2.11 The question of whether ...
by GreatLaker
28 Jan 2024 18:43
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Principal residence questions
Replies: 20
Views: 1303

Re: Principal residence questions

Someone will shortly link the CRA material that goes over this in detail, I expect. I did what the OP asked about a few years back. I still have the documentation, receipts etc for the properties. When Mike sells house A, he could declare it as principle residence for all the years he owned it, so none of the capital gain would be taxable. Then when he eventually sells house B, he could declare it as principal residence for the years since he sold house A. The taxable capital gain would be prorated for the percent of time that it was not his principle residence. CRA has a plus 1 rule to that allows claiming the principal residence exemption on both properties for 1 year, to allow for time to sell the first property and move. There is no ne...
by GreatLaker
28 Jan 2024 09:03
Forum: Taxing Situations
Topic: lump sum payout of DBP increases tax bracket
Replies: 2
Views: 388

Re: lump sum payout of DBP increases tax bracket

Generally that is true. The amount up to the Maximum Transfer Value (MTV) can be transferred to a locked-in account (LIRA) with no tax implications. Any amount above the Maximum Transfer Value can be transferred to an RRSP if you have contribution room. But you mentioned that you don't have any remaining contribution room, so the excess value must be taken as a lump sum that will be taxable for the year it is received. The impact on your tax bracket will depend on the amount and which tax bracket your are in. If it is a large amount it could bump you up multiple tax brackets. These links explain Maximum Transfer Value: https://www.advisor.ca/tax/tax-strategies/understanding-maximum-transfer-value-rules/ https://milliondollarjourney.com/how-...
by GreatLaker
25 Jan 2024 07:16
Forum: Community Centre
Topic: RIP 2024
Replies: 34
Views: 2816

Re: RIP 2024

Melanie, Woodstock Performer and 'Brand New Key' Singer, Dead at 76
Musician Melanie Safka's three children announced her death
...
when the singer was 22 years old, she performed at Woodstock — joining a historic lineup that included Joan Baez, Jimi Hendrix and the Grateful Dead.
...
Melanie then formed her own record label, Neighborhood Records, and released her chart-topping single “Brand New Key.”

The soundtrack of my sisters' lives as they roller skated around the hockey arena on Friday nights.