Rebalancing is usually a good way to manage risk but not always.
The following example is 60% stocks and 40% bonds; I assume US, but more details aren't given. Assume portfolio starts end of 1999.
In 2008, the buy and hold portfolio was down less than the rebalanced portfolios.
Rebalancing doesn't...even reduce risk in the short term. The clearest benefits from rebalancing show up for portfolios that investors have held for several...
I decided to stay with robos for a year or so, but think I am now ready to make the switch and DIY.
My plan is as follows:
TFSA/RRSP in VGRO
Non-registered in 75%/25% VEQT and ZDB. I would like to be able to retire in 15 years. I think that I can manage rebalancing one account with a two-fund portfolio.
Hello All,
We have just moved our investments from CI to Questrade. All accounts TFSA, RRSP , Locked in LIRA and Margin acct are held with VBAL.
I am planning on doing a DRIP for the TFSA, RRSP and locked in LIRA but wondered about doing if for the margin account. We have a tax accountant who does all our taxes so I am wondering if we should set up a DRIP in the margin account since the tax accountant will figure out the ACB correct? Does...
I tried to find the answer elsewhere in the forum, couldn't find anything close, so here goes:
I'm retired in my 70's (one spouse, no kids), renters. CPP + OAS, no other pensions, except investments. I used to managed my whole portfolio (Join tax, 2 TFSA, 2 RIF, 2 LIF) by myself on BMO Investorline. Today, I want to retire managing those accounts, and do something else more fun with the time left in my still healthy body (though I did find...
I know that we cannot transfer in-kind from RRSP to TFSA. We will have to transfer in-kind from RRSP to non registered account and then do a in-kind transfer from non registered account to TFSA.
My personal income for this year is $150k.
I have $22k worth of shares in RRSP. And I have a contribution room in TFSA and would like to transfer these shares in-kind to TFSA. The reason I am doing this is because the shares are currently trading at a...
We are a couple, both 50 years old. Right now we have a TFSA, RRSP, LIRA and Individual account (taxable) with CI Investments. They are diversified in a tax efficient manner that was done by our fee-only based Financial advisor. We are investing at a 60/40 break down because we thought we’d retire next year. We are investing in dividend paying stocks and doing a DRIP. We are paying .35% in a management fee for quarterly rebalancing only, but are...
My wife and I have decided to combine our incomes for investing point of view. We are proposing, she, the lessor income earner will hold all the stocks. I, the larger income person, will hold all the fixed entry items, eg. bonds, etc.
This makes investing a lot easier. Only have one stocks portfolio to worry about.
Does this make sense ? What about as the two portfolios get larger ?
Should we put all the fixed income items in a TFA account ?...
The final phase of IIROC's CRM (Client Relationship Model) 2 will be implemented in January 2017. That means most financial institutions will report, most likely with Dec 2016 account statements, things like:
1. money weighted rate of return on each account. changes in market value, single year vs multi-year, etc.
2. fees received by the FI (from you and from the product vendor) and whether the latter is the entire MER or trailer fee only...
Wondering anyone out there has any suggestions on decumulation software that takes into account oas clawbacks, different taxes for different account types etc etc.
I tried out Cascadesfs.com and it was pretty good, but $80+ for 1 month of access anyone have any other suggestions?
Boy, am I glad I found FWF; you all are brilliant! :D
I'm considering a move from the U.S. to Canada myself (dual citizen).
If the address change would restrict my Vanguard retirement accounts to withdrawals only, I wonder if an alternative to moving retirement funds to friendlier stateside firms is to leave them with Vanguard and, while still in the U.S., change my positions such that I'm invested only in target date funds in retirement...
Hi, I have some pretty basic questions about buying bonds. Sorry about the long post.
Our IPS calls for about 20% allocation to fixed income. I had thought of this as two buckets, a smaller one in HISAs and the like for possible shorter-term liquidity, and the bigger bucket as a strategic portfolio diversifier. Because the second bucket is a sizeable amount and because it’s intended to be outstanding sort of indefinitely, yield is more of an...
I am trying to give some advice to a Canadian who is unfamiliar with investing as to how to get started. (The Canadian is an immigrant with no background in investing, though I think she has an employer-sponsored RRSP `in which she has little understanding of how the money is invested.). Since I'm in the US, my knowledge of the specific Canadian situation is poor.
This has to allow for a very low amount of investment--probably something like...
First time posting
have been following Bogleheads for a few years now
Age 54 spouse 56
Up until now have been investing in Real estate looking to diversify into a balanced investing account for retirement (2026).No debt on any assests
Corp #1 have $700,000 cash to invest now
currently have a contract with a federal govt project expected to last 2.5 more years.
will have min $800,000 to invest over that time
sell assests after contract ends...
One of the biggest ironies in investing is that while almost everyone thinks they are a contrarian, almost no one actually is. I remember 2007, right before the market peaked. Just about everybody I knew thought they were a value investor, zigging where others zagged. But at investing conferences, you found out that all these guys were basically buying the same stocks. What people thought was a contrarian view was actually...
I stopped contributing to an rrsp about 5 years ago when I thought I had enough in that instrument. I've since maxed out my tfsa every year. My corporation pays me a 100k a year as well as my wife 100K a year. We both have about 77,000 in rrsp room as of 2021. Would anyone advise collapsing some of the tfsa and contributimg the proceeds to the rrsp and then top up the tfsa in the new year?
If so how much should I contribute to maximize my tax...
When portfolio reaches certain milestones, do you consider diversifying by opening another brokerage account with a different institution? Under one roof is nice, but there is no incremental benefits?
Just to give you a bit of background, I'm 35 years old and really don't have much time / interest to micro-manage my investments so I wanted an investment strategy where I would simply dump all my extra money a few times a year and forget about it until I retire in 25-30 years. So, after a bit a research, I went with a couple ETFs for my non-reg., TFSA and RRSP.
I noticed since February my investment value went for 563k to 503k......
Assuming no trading cost/tax implications... if you have 2 assets that you have equal faith in, whether they are stocks or etfs or whatever, wouldn't it make immediate sense to always rebalance right away? Selling what's high for what's low.
example: x is up 1%, y is down 1% so you rebalance taking the 1% gain off the table and reinvesting it in y which is now cheaper... you've lowered your average cost.
For those expecting a recession and considering a repositioning, history tells us the S&P generally has averaged +3.68% during these periods in the past. The one major outlier to the downside was the financial crisis of 2008,
Past performance does not guarantee future results. Indices are unmanaged and not available for direct investment. For illustrative purposes only. Data sources: Morningstar, Ned Davis Research, and Hartford Funds, 3/22.
Well, I finally became a Canadian permanent resident. Now I need to transfer and implement changes to my portfolio.
My wife is a dual citizen (US and Canadian) and I am a US citizen. Our US citizenship makes investments in a TFSA or in non-USD ETFs within a non-registered account complicated for both of us. Hence, they aren't included in the plan below.
Emergency funds: six months to a year expenses
Debt: none
Marital Status: Married
Tax...
I find it a bit confusing where some professionals tell you to do total market ETFs but then say no to the small cap ETFs but then you have a guy like Paul Merriman who has been in the business a long time trumpeting the value of small cap investments (but the research isn’t that strong). Then you have Jack Bogle saying that S&P is all you need.
I have settled on VGRO as my one ETF in all my accounts. I have been investing since Feb 2018 shortly after VGRO started trading. I had been using VCN & VXC before VGRO.
I seem to be able to stay the course. I find having one ETF makes things simple.
I use VGRO In my TFSA, RRSP and taxable. I am in my twenties with a portfolio in the low 6 figures.
Does anyone see anything terribly wrong that I need to keep an eye on over the next decades...
I’m trying to understand all of the major pullbacks we have had in our history
I understand the Great Depression, was a child during the ’87 crash, remember the dot.com crash and felt the impact to my own portfolio in 2008.
However can someone who lived through the “Death of Equities” article in August 1979 explain what was so bad about that period? I see that S&P 500 nominal returns were -15% and -27% respectively in 1973 and ’74 but after...
So Im 21F. Finishing my 2nd gap year after high school and will start uni next fall. I have been just working past 2 years and moved out so im independent. Ive traveled a lot recently as well (I live in eruope so its easy to travel. Ive been to paris, london, rome and budapest, this year). My salary is around 1593€/month after taxes. I spend A LOT tho (I go out every week usually once: clubs, drinking, etc. its super fun with friends and we...
I'm not sure if this subject has been bashed to death, or not. Apologies if I don't find the relevant threads (happy to be pointed in the right direction). It is somewhat in a similar vein to what Spidey has posted recently here and here
What is the rational people use for buying bond ETFs at this point when you have new cash to deploy? The three listed in the subject title have YTMs around 1.3% and durations around 8 years. Why wouldn't you...
As unpleasant as the equity market downdraft is, these times also open a window for some potential tweaking of the portfolio. I've been thinking about a few things, and it would be interesting to see if others are as well, or if most people are content enough to just let everything ride as is.
I recognize that making wholesale changes at times of stress is likely a bad idea, but I'm not actually contemplating wholesale changes, just things I've...
I've never had stocks before or any type of retirement account. I have 180k in cash savings (around 100k from refinancing) and I'm thinking of keeping 50k in cash and using 130k to buy stocks throughout this week maxing out my tax-free savings account which I've never used.
I'm also thinking of refinancing 200k from a rental property at 4.2% interest rate and investing that in the stock market as well. Should I invest 130k as a lump sum this...
I'm trying to help set up someone who inherited a reasonable sum. Basically, most of the money will be invested in a taxable account. The person is a balanced ETF investor and wants simplicity, so VBAL seems to be the way to go. Another 10-15 years away from truly needing to access to the capital, so growth is the main focus.
However, the person also would like some basic spending money on a monthly basis for the next 10 years. I was...
I am not sure if this the appropriate forum but I need some help…
About a year ago I needed to move money from a pension plan to a LIRA after leaving a job. I know nothing about the world of finance and find it overwhelming and stressful. Also at this time I had just moved to a new province, started a new job and was in the process of buying a house. I had no idea what a LIRA was, I was stressed and needed someone to help me.
After hitting my post-65 retirement target at 50, I've shifted savings goals: In my mid-fifties, I want to drop to part-time work and attend post-secondary full time.
Duration? Well, at least three years for the degree I'm most interested in. Beyond that, there are a couple of other degrees I'd like to pursue, as and when I can afford to. The first degree leads to a certification that I can maybe turn to a late-life career, maybe turn to...
Another year has wrapped up. In this thread you can post what you'd like about your 2021 and longer term investment results, comment on them, compare with others and benchmarks you find useful. IOW, the usual. Best wishes to all FWF'ers for 2022 !
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For 2021, my overall portfolio IRR was about 16.5 % (without Dec 31 HISA distributions).
Greetings, all. I am delighted to have found this excellent forum. We have been reading up intensively on asset allocation, safe withdrawal rates, etc. and have come up with what seems to us to be a reasonable preliminary plan. In the short term, we are extremely nervous about investing our lump sum now, due to historically high equity valuations and negative real yields on bonds. In the longer term, our greatest fear is sequence of returns risk...
I recently moved to canada from US and want to start investing. (Not a US citizen)
I have a capital of 150K USD and 20K CAD. I have a disposable income of 3K per month.
Short Term goal:
Buy a house in 3-6 months : approx: 800K, need to have downpayment funds of approximately 50-80K
I anticipate USD to go down so planning to convert some USD to CAD via Norbert's gambit for this.
Long term goal:
Nothing really planned out, hoping to work...
This is my first time in the forum and I hope that my fellow canadian could help me with my TFSA portfolio.
I'm 32 years old and want to maximise my TFSA as much as possible for my future retirement (20-25 years)
I will receive next week a good dividend amount that I want to invest in my TFSA (15,000$).
Please see below my portfolio and here is my dilemma : I don't have any bond market exposition and it is probably my big...
My neighbour is a successful small business owner who knows nothing about investing and doesn't much care. He has always focused on his business.
He has always used a full-service broker and never gave it much thought. He has now realized that for an annual fee of 1.25% he's been getting a lot of trading and stuff that he doesn't understand. He doesn't think there's been much return and apparently gets little or...
Currently I have the following assets in each account:
Personal
XEQT
TFSA
VUN
XEF
VTI
VXUS
RRSP
XEQT
I like everything about the Personal and RRSP account, its simple and easy to track and I'm comfortable with the allocations of the XEQT ETF.
My TFSA account on the other account is a little bit messy, originally I started buying VTI/VXUS and then switched over to VUN/XEF after I learned I can avoid the foreign exchange fee....
Hi guys.
Anybody available?
I got into that core bond pool mutual fund in January last year.
Now it has declined 15% value.
The bank kept on saying it would come back.
What should I do?
It goes down every day with climbing bond yields.
So I've been investing for about 10+ years now. I'm 32 years old. I've been doing more and more research and have come to the conclusion that I've been doing it all wrong this whole time and I am a Boglehead at heart. Every year I max out my TFSA and invest a ton. I'm with TD wealth advisors at the moment and have done some digging and I'm paying a crazy amount in fees. Some accounts are near 3%. I'm looking to transfer everything over to quest...
Bank of Canada currently shows 10 year government bonds yielding 1.63% nominal, and 2 year bonds yielding 0.83% nominal. Even if inflation currently running at 4.4% annually, returns to its benchmark 2%, real yields will be negative. Commercial bonds should do somewhat better, but there is still a strong risk of negative yields.
So why hold bonds?
Personally, I hold bonds to reduce the risk of my portfolio, to ensure that I will have enough...
I'd like to open TFSA for my 18 yo son to invest in equities.
He'll open RSP as well, not sure when we'll contribute though...
I was thinking about TD MF to take advantage of e-funds (low MER last time I used them).
I didn't want to go TDDI, because of the low balance fees ($25/quarter looks like now).
But I see they have 'Household Program', I'll have to look into it.
Any advice? Anything else we should be looking into?
Time has come to rebalance my portfolio yet again. I was thinking of tilting it towards factors, but in the end, I decided to just stick with Justin's plaid strategy:
The one question that remains that I never was clear on is... what tax rate should I use? Is it supposed to be the tax rate in retirement? I don't know what that is. Alternatively, I could use the tax rate if I were to retire right now . But, that would probably be on the low...
Regular FWF readers often keep track of their portfolios via Quicken. See as the most recent thread on what to do about Quicken going to a subscription model, enforcing their future revenue stream by end-of-lifing download capabilities. Since a lot of us are thrifty, the new price gouging aggravates some. It would certainly aggravate me.
I don't use Quicken myself. I'm a legacy user of some portfolio management software that I bought in Windows...
I've asked IB what happens to my funds after i die and this is the response i got. what the fuck does detail beneficiary info externally mean? WHy cant they just be crystal clear on what happens.
In the Fall I will be moving overseas and will become a non-resident. I currently have about $45K worth of investments in my TFSA. I understand that I cannot contribute to the TFSA any further the day I become a non-resident, but I am allowed to maintain the investments in the TFSA while a non-resident.
I have some cash still available to invest and was considering adding to my portfolio. However, at this point, is it more...
Looking for knowledge that perhaps already exists, discussed and even shared.
What are people using as a tool or platform to manage currency conversions to keep desired asset allocations? Would appreciate your suggestions and feedback.
I recently moved to Canada from Hong Kong and want to start investing in Canada. I am a returning Canadian and became a tax resident early this year.
Some backgrounds:
Cash of 1M USD and 1M CAD.
Stock and Investments worth around 200K CAD in Hong Kong.
Already have a house mortgage free in Canada as my family's principal residence. Have another condo in Hong Kong worth around 1M CAD, also mortgage free but not yet been sold or...
I would dispute both the great part and the quiz part but nevertheless...
a bit shocking in its simplicity but then when you hang around fora such as this it is easy to forget that most people can't balance a chequebook or do their own taxes.
Might be useful as a way to gauge the level of knowledge of people you know and start a conversation about the relevant topics.
Greetings all. I am considering a shift in my fixed income investing and would appreciate some feedback.
I have a significant portion of my fixed income held in a non-registered account. For years I favoured GICs/ZDB/BXF due to the premium bonds held in most other bond ETFs. These premium bonds meant that those ETFs were very tax inefficient.
With the recent rise in rates, two things have changed. Firstly, mainstream bond ETFs such as VSB,...
I'd love to hear some different thoughts on how I should start investing new money into my portfolio. In the past, I used to buy e-funds every month, and then once a year switch them over to an equivalent ETF. I believe DCA is a good strategy for someone who buys and holds forever. The problem (albeit nice to have), is that my income isn't consistent from month to month, and amounts are larger than before. The e-funds into ETFs doesn't work...
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