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by AltaRed
02 Dec 2017 12:03
Forum: Under the Mattress: Protecting Your Money
Topic: Credit nightmare
Replies: 8
Views: 900

Re: Credit nightmare

Scores matter at some level. Per Equifax:

Code: Select all

300-560	Poor		4% of Canadians
560-660	Fair		10%
660-725	Good		15%
725-760	Very Good	14%
760-900	Excellent	57%
There is no difference within categories, but consumer loan borrowing rates, and potentially getting credit with a utility/telecom or rental lease could likely matter below 660 (or 700).
by AltaRed
02 Dec 2017 11:53
Forum: Taxing Situations
Topic: Average ACB across accounts
Replies: 7
Views: 449

Re: Average ACB across accounts

The only time I am aware of that 2 funds are Identical Property is if the only difference is in Class (MER) structure, e.g. A class, B class, F class. It appears to me that MAW105 and MAW104 have slightly different sector weightings and asset allocations, with an internal strategy on MAW105 to minimize taxable distributions. I wouldn't consider them Identical Property.
by AltaRed
01 Dec 2017 17:58
Forum: Under the Mattress: Protecting Your Money
Topic: High interest rates for savings, GICs and MMFs (2017)
Replies: 463
Views: 46392

Re: High interest rates for savings, GICs and MMFs (2017)

Agreed. I had an ING account for a very long time from back in the '90s and never had a chequing account with them, and didn't need it for transfers.
by AltaRed
01 Dec 2017 16:44
Forum: Under the Mattress: Protecting Your Money
Topic: Credit nightmare
Replies: 8
Views: 900

Re: Credit nightmare

Continue to pay off your debts as you have been for the last 2 years, continue to live within your means, and continue to save a % of your income. Your credit score will eventually 'catch up' and at that time you will also realistically have the capacity to consider borrowing, opening new accounts, etc. Until then, you are 'in the penalty box' and shouldn't care what your score is IMO. You aren't in a position yet where it is safe to be back on the ice anyway. :thumbsup: Agree completely. It takes awhile for the needle to move and it takes time to get out of the penalty box. It really is as it should be. The OP needs to simply focus on getting his/her finances in order, continuing to pay down debt methodically and without exception. Don't ...
by AltaRed
01 Dec 2017 11:35
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 30737

Re: Clippings 2017

I have read a number of studies in the past (all US based) that ethanol is net energy negative. It takes more energy (full cycle) to make ethanol than what is delivered at the pump. It's a perfect example of how almost anything can be manipulated.
by AltaRed
30 Nov 2017 21:13
Forum: Under the Mattress: Protecting Your Money
Topic: High interest rates for savings, GICs and MMFs (2017)
Replies: 463
Views: 46392

Re: High interest rates for savings, GICs and MMFs (2017)

When I was with PCF, I only e er used a savings account and used it for push-pull to/from Scotia.
by AltaRed
30 Nov 2017 18:50
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

deaddog wrote: 30 Nov 2017 18:43 I look at it this way: Holding a large number of stocks in your portfolio leads to average performance. Since only 3 or 4 will produce big gains the remaining stocks drag the performance down.

If you want to have different results than everyone else you have to do things differently.
One can have different results in each direction if 3 or 4 of them produce big losses.....yes, yes, I know. Use stops.
by AltaRed
30 Nov 2017 17:16
Forum: Under the Mattress: Protecting Your Money
Topic: Where to park USD cash?
Replies: 180
Views: 28031

Re: Where to park USD cash?

Ask them directly. There is no buy/sell commissions but there might be a minimum hold period. I am with Scotia, so generally what I do is assume a 90 day hold period to avoid penalty, but that is just for holding some shares. I buy/sell within the holding on a regular basis. Example: Buy 1000 shares ($10,000). As long as I get past the 90 day period, I can buy/sell as often as I want after that.
by AltaRed
30 Nov 2017 16:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

I 'broad index' ex-Canada too... so my posts have really only been about the Canadian market only. There is no way I am going to second guess big markets like the USA and Europe.
by AltaRed
30 Nov 2017 15:36
Forum: Under the Mattress: Protecting Your Money
Topic: Where to park USD cash?
Replies: 180
Views: 28031

Re: Where to park USD cash?

A little off tangent but the Scotia entry link to Dundee Bank in Finiki needs to change to ADS Canadian Bank https://ads.scotiabank.com/ADS/Download/236/en
by AltaRed
30 Nov 2017 14:04
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

I come back to this link in the first post https://tradingeconomics.com/canada/stock-market. In a 20 stock portfolio, I wouldn't bet on a niche stock being a reliable 5% component of that portfolio. Perhaps the term large cap is not the right characterization BUT it would typically be a stock whose market presence is well understood, has had a track record of fairly consistent performance and has not derailed off-road from the main highway.

I would also suggest one can cover market sectors in Canada quite well from the top 100. There are a few exceptions, e.g. health, but that can be covered with a multi-national traded on the NYSE.
by AltaRed
30 Nov 2017 13:41
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

No need for any apologies. The discussion is a good one and highly relevant. What I was trying to say is the respected gurus who undertake studies and write papers on stock diversification are NOT thinking of portfolios containing fringe stocks. No one, for example, would have their investable net worth in 10 small cap stocks diversified amongst sectors. If you had 20 equal weight stocks in a portfolio and one of them was a small cap such as CSH.UN, can you really say you are diversified into the real estate sector? CSH.UN may well be gone next month (bought out or made a fatal management decision), while BAM is simply too large a super tanker to suffer a sudden fatal flaw. Companies like CSH.UN and ALA and such are not predictable in their...
by AltaRed
30 Nov 2017 13:22
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Globe Investor
Replies: 72
Views: 5441

Re: Globe Investor

FWIW, never trust any data sources specifically when it comes to valuation metrics (anything calculated). Go to a company's specific financials and/or website to get accurate data, or do your own calculation. When I look for a company's dividend yield, I do my own calculation based on the most current dividend/distribution payment.
by AltaRed
30 Nov 2017 13:13
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: What did you Buy? What might you buy? (2017)
Replies: 532
Views: 60883

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

jay wrote: 30 Nov 2017 13:08 Started a new position in SmartCentres Real Estate Investment Trust (TSE:SRU.UN), replacing BEI.UN that I just sold yesterday. I initiated this position in my TFSA which is where I intend to keep my REITs going forward. Paid $28.95/share, yielding just above 6%.
Wrong thread....
by AltaRed
30 Nov 2017 12:55
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

The trouble is you are comparing a small cap (in your example) that should be very focused on a thin slice of the economy, with a large(er) cap BAM.... which by definition should have a broader footprint, including international. One diversifies by having 15-25 large cap stocks in one's core portfolio. Anything outside the Cdn top 60 or 100 by market cap (depending on one's POV) is playing on the fringes and only really satisfies one's personal 'fun' button. Not that playing on the fringes does not have merit but it is more likely to be a personal objective to potentially juice one's returns slightly, or have bragging rights on a 10 bagger, or..... (whatever it is).
by AltaRed
30 Nov 2017 11:44
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Rate reset preferred share ladder?
Replies: 74
Views: 9052

Re: Rate reset preferred share ladder?

Bril's post above seemed to slip by without comment. I've never tried to understand split and retractable prefs but that appears to be a way to invoke some price stability to 'emulate' the behaviour of a bond ladder whereby there is physical, and perhaps more importantly, psychological certainty on maturity values. I have a bond/GIC/debenture ladder rather than a bond ETF because I know, at least twice a year, I have certainty of capital being returned to me on the maturity of an issue. The same might be said about how one selects prefs and in particular, type of preferred share. Others into split and retractable prefs may wish to comment further, and in particular, volatility vs total return. I agree with Longinvest that prefs have had vol...
by AltaRed
30 Nov 2017 11:26
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 725
Views: 101125

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Indeed they do, at least this morning.... which I think was to be expected given management said 2 positive things, i.e. repair balance sheet in a variety of ways (although slower than I would like) and a dividend boost. I think it's the latter one that investors the last 5 years in particular are focused on.

The market is a strange animal though. TD had the opposite reaction this morning with a slight miss.
by AltaRed
30 Nov 2017 11:12
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: How Many Stocks In A Portfolio?
Replies: 126
Views: 8815

Re: How Many Stocks In A Portfolio?

They don't reconcile it I suspect because they are talking about large cap blue chip stocks to begin with. CSH surely cannot be a core holding in a portfolio while BAM would likely be. None of the gurus would own a CSH to begin with, never mind talk about it. We are talking about Americans that would own a MMM, JNJ, HD, etc as part of their 15-25 core stock holdings at 2-5% portfolio weighting.

In Canada, it would be those within the top 40 or so of the TSX60 diversified among sectors. After all, XIU and XIC essentially march lock step, as does the S&P500 vs total market in the USA. Even the DJ30 marches pretty close to the S&P500.
by AltaRed
29 Nov 2017 22:27
Forum: Retirement, Pensions and Peace of Mind
Topic: Managing RRSP while a tax non-resident?
Replies: 2
Views: 344

Re: Managing RRSP while a tax non-resident?

There is no reason your RRSP provider shouldn't allow you to switch investments within an RRSP. You will need to reach out to them to determine how best to do that since I am assuming you don't have much contact with that bank, or haven't in years? When you say Canadian bank, are you referring to a discount brokerage account, or are you referring to an RRSP at a bank branch? Bank branches themselves do not have accounts whereby you can purchase stock exchange based investments. For that you need a brokerage account.
by AltaRed
29 Nov 2017 18:39
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 725
Views: 101125

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

I would think in the order of 3 would be way more ideal, perhaps 3.5 max. PPL is about 3.5. One source of discussion: https://www.readyratios.com/reference/d ... ratio.html

That said, they seem intent (and capable) to stick handle down the middle between balance sheet concerns and dividend growth rate. I am not concerned about their outlook, I'd just prefer to see a higher rate of debt repayment over dividend growth.
by AltaRed
29 Nov 2017 18:18
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Rate reset preferred share ladder?
Replies: 74
Views: 9052

Re: Rate reset preferred share ladder?

Peculiar_Investor wrote: 28 Nov 2017 10:50 Now I'm stepping back and reviewing that 'haphazard' approach and trying to determine if there is benefit in refining the selection methodology.
May depend on what your long term goal for having prefs in your asset allocation is. I am not nearly as rigorous with my pref ladder as I am with my bond ladder simply because Mr. Market determines what these things are worth at any given time and getting too precise with methodology on circa 7% of my portfolio isn't worth disproportionate time (unlike someone with a significant weighting in this asset class).
by AltaRed
29 Nov 2017 18:04
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 725
Views: 101125

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Details worthy of posting https://www.enbridge.com/media-center/n ... &year=2017

Not really impressed with minimal improvement of Debt/ETIBDA ratio only moving to 4.5 by 2020. Should be diverting more of that dividend growth to debt repayment, but corporations are still drunk with availability of cheap debt.
by AltaRed
29 Nov 2017 11:07
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Royal Bank (Symbol-RY)
Replies: 315
Views: 71846

Re: Royal Bank (Symbol-RY)

No personal bias there? :wink:
by AltaRed
28 Nov 2017 11:57
Forum: Financial Planning and Building Portfolios
Topic: Do bonds in RRSP/TFSA still make sense?
Replies: 36
Views: 2994

Re: Do bonds in RRSP/TFSA still make sense?

I am also giving up with bonds. It is giving me some discomfort but their performances in the last 3-5 years combined with long term US Federal Reserve management of interest rates kill their appeal. I basically moved all of this in Canadian Banks dividends funds. I can't bring myself to go that far. I share your discomfort, and I've reduced my bond holdings to around 20%, with dividend stocks overweighted, but I can't bring myself to go lower than that. I think people could regret not having some FI allocation set aside during their withdrawal years, if for no reason other than unexpected needs coinciding with a 'down' equity market. It is fine to say one can live off pension income, aka CPP and some DB annuity if lucky, supplemented by a...