In today's Globe there is an interesting article by Rob Carrick on why everyone should own the big six banks. I agree. What he didn't discuss, probably because of space limitations, was that most of these banks have
foreign business that is growing. Considering that scenario, would those of you big on geographic diversification now consider the Canadian banks as, at least partly, vehicles of geographic diversification. For example BMO in China,...
I've searched the messages and, although there are a lot of messages regarding RRSP, i haven't found anything that resembles something that I am mulling over. ( I know someone will find it and post it :oops: in advance ).
I am about ten years from drawing on my RRSP. I bought a lot of dividend stocks in it over the last two years, because that is where I had some money.
Now, I am wondering how to calculate whether it would be beneficial for...
My sister works for a relatively small company, 20-50 employees I think she said, and they don't have any RSP employer-match programs available. Is there any incentive for employers to provide these (other than good retention, etc)? Thanks for any insight.
A wake-up call to those that share their machines with their children or download from anonymous sites.
It would seem that this poor soul was subject to a keystroke logging program that was installed on his computer and is now out of pocket and the bank has washed their hands of all liability.
At least ING only allows a transfer of funds to your account number on file.
Has Richard Croft's site always featured the Real World Indexes along with the FPX calculator ? I hadn't noticed the former until the other day.
The construction of RWI is explained in a Financial Post article :
The Real World indexes are simply the FPX indexes adjusted for costs. The Real World Conservative index, for example, is the FPX Income index adjusted by 1% per annum. We believe the Real World indexes reflect the true costs...
My daughter is a Geology student & has applied to a # of exploration companies for summer employment. Through the grapevine she has heard horror stories of people not getting paid due solvency issues with some exploration companies. Not sure if these are recent issues, what with all the cash floating around in resources these days.
Anyhow, she's applied to a # of companies that have expressed interest in hiring her. She worked for Comaplex last...
I heard of this income plus fixed income type of investment offered by Manulife. I presently have a very conservative portfolio, 70 fixed 30 equity.
The equities are primarily in the form of Td-e funds and ETF's (some Can. US.and international indexes)
The fixed portion is made up of: a ladder of 5yr GIC's, and RRB's . I've been happy with the results so far. but I'm always looking out for something better in terms of actual return.
wow, I had not sent in my form to open the PH&N acct.
They are now ready to go! $6000 : High Yield Bond fund $24,000 in the Total return Bond Fund The other 70,000 divided between Dividend Income fd. Overseas Equity and US equity fund.
Should I re-think this? was considering a low to moderate risk, prepared to loose 10% only.
Sent for the Vanguard forms, have not made it to Canada yet?
I placed a market order and got an almost instant fill at .... 72.26.
My reasoning for the market order was: with the large volume and the large ask size, I thought I'd probably get it at the ask and would be happy with that.
I am surprised to get it 5 cents above the ask. Certainly not devasted, just surprised.
Hopefully I'll learn something and the 5 dollars will have been...
Any actually retired folk here? One contrarian veiwpoint for retirees is 80% Equity, and 20% Bonds etc.
The current (Feb) issue of Consumer Reports Money Manager found only 10 USA mutual funds worthwhile investing in, for retirement purposes (4 out of the ten were Vanguard funds). One of the Vanguard funds the Vanguard Tax-Managed Balanced has an ER of .12%!
In a future issue of Consumer Reports Money Manager will be looking which index funds...
How can you prove to CCRA the interest incurred on your credit line or Margin account, when you borrowed from them to invest ?
when:
-you didn't pay them off yet by the time when you should file for income tax.
- Is the interest you paid since borrowing refundable?
Just wondering what everyone's thoughts are on the usual recommendation of x% in Canada, x% in US, x% international.
It seems the world is a smaller place every year, and that many companies themselves have operations beyond our borders. Do any of these factors have an impact on your weightings? Will this be of less importance in the future as we become more and more a global community?
If you buy a multinational company headquartered in...
We've had plenty of debates here concerning what's better -- pay off the mortgage, or invest.
Here's another twist: instead of taking out a big RRSP loan (or leaving the mortgage un-prepaid), one just uses cash resources available to buy in-the-money call options in their RRSP, timing the expiry of the options according to the availability of cash resources to exercise the contracts.
What are the pro's and cons? Is this better than the RRSP...
A few years ago I had a financial planner invest what little i had in the Quotential Program at Franklin Templeton. he invested me in the Franklin Tmptn. Bal. Growth Port DSC. At that time I new nothing about mutual funds and did not realize it was a DSC fund. I have had a bitter taste in my mouth ever since I started to look into forums like this ands read more about investing. I stopped contributing to this fund and found out today if i...
Do you know where I could find Earnings Per Share datas for :
- canadian stocks or US stocks ?
- indexes?
I'm looking for very very long term series (20, 30 years...). Even if it's only on a limited number of stocks/indices it will be better than what I currently have (Dow Jones EPS 1960-2005).
No need to say free datas would be appreciated...
Ok, I decided to start moving in more of an indexed approach with CIBC index funds. I bought $500.00 each of 4 funds on Friday thru investor's edge. When they showed up in my account they showed up with the following values;
CIBC CANADIAN INDEX FUND (300)-CAD $26.099 $495.88
CIBC EMERGING MARKETS INDEX FUND (519)-CAD $18.687 $485.86
CIBC NASDAQ INDEX RRSP FUND (515)-CAD $5.012 $496.19
Trade Details
CIBC US EQUITY INDEX FUND (484)-CAD...
The following comes from the folks who publish a number of conservative newsletters .
Ask two investors to separate a list of stocks into investments and speculations and you're apt to get different results from each. After all, one person's investment is often somebody else's idea of a speculation. But we do feel there's a clear distinction between investing and speculating.
Usually investors are after an increase in value. When they buy...
Sorry for another RRSP/Non-RRSP question. I am in need of some advice. Has anyone looked at how the enhanced dividend credit AND capital gains tax together, in buy/hold stocks in non-registered accounts, performs compared to investments solely in an RSP?
I'm 30 with a portfolio worth $34000, with a 38:62% split between my registered and non-registered accounts. I am soooooooo confused as to how to treat my portfolio going forwards. Should I...
I've noticed in numerous threads that it has been suggested that it doesn't make sense to hold fixed income while paying your mortgage. I haven't noticed this being discussed in any detail, however I assume that this is because a mortgage provides you with a type of fixed income, each payment reducing the interest you pay on a compounding basis. Also, I am guessing that it is pretty difficult to find fixed income products that pay at a post tax...
I’ve been a long-time lurker, and finally broke down and decided to create myself an account. I hope I’ll rise to the challenge of very occasionally adding some value to your discussions here.
Here’s a theory which I analyzed in various ways, and I still can’t find any serious problems with it. Feel free to poke holes at it, that’s why I posted this.
For those who know the Garth Turner RRSP Meltdown, you also know that it’s not practical...
After reading Rent vs Buy carefully I still have this question and adding it to ever-growing RE pile.
Would it be worth it to buy the second house and rent it out?
Here are the scenarios,
1. Buying a $300,000 house with 50,000 down with a 5.5% fixed interest rate for 7 years and renting it for $1700 a month and paying the balance (mortgage+tax+maintenance - $1700) from pocket. Assumptions are that on an average I might end up paying 8 –...
Jon Chevreau has been profiling the portfolios of rather well known people in the financial world the last couple of weeks in the FP, with an emphasis on what's in their RRSPs because it's February. Today's installment is here and takes a look at Moshe Milevsky and Talbot Stevens. They're both highly levered and the portfolios are mostly ETFs by the looks of it.
Dan Richards was profiled a week ago too, maybe two weeks, and his portfolio was...
I have some money that pays me interest on which I have to pay income taxes and thought that if we prepay our funeral expenses my heirs would not have to worry about it at a very emotial time. I would also not have to pay income tax on the interest which would accrue to the funeral trust to offset the increased cost while I put off dying. What do you people think?
If a person found themselves with a sizeable chunk of money sitting in a cash account that was ear-marked for Canadian equities, can a reasonable argument be made to leave it there until the Canadian market decreases in value?
I have read about DCA'ing vs. lump-sum when a lump sum is available, but what, if any, are the merits of occasionally doing nothing for awhile?
If someone had about 10 million to invest, how would you suggest that they split up their money in terms of brokerages? I know that CIPF will cover up to $1 million, but in reality, more than $1 million will be covered b/c CIPF covers the shortfall. SHORTFALL = TOTAL CLIENT EQUITY less CUSTOMER POOL (
My question is, how much do you think is safe to put into one big bank brokerage? I guess the chance of insolvency with a big bank...
I want to convert (not trade) some CAD to USD in IB Forex, but it seems like only whole dollars can be converted. Am I obliged to have whatever odd cents CAD stay unconverted? What if I wanted to trade other currencies, would I have odd cent lots of different currencies between trades?
The following simple theorem can be confirmed with a spreadsheet:
RRSP Theorem 1: If the tax rates on contributing to and withdrawing from and RRSP are equal, the after-tax return on the RRSP contribution is the compounded value of the net contribution after subtraction of the refund.
Example: Joe contributes $1000 to his RRSP and obtains an 8% return. His overall tax rate on contributing to and withdrawing from the RRSP is 25%. His...
Of course, those who believe in CAPM (and it is a matter of blind faith given the evidence) either argue that CAPM can't really be tested (thanks for a really useless theory guys) or that a more advanced version known as ICAPM (intertemporal) holds. Unfortunately the factors of the ICAPM are left undefined, so once again we are left with a hollow theory. Neither of these CAPM defenses is of much use to...
The Feb. 2007 Consumer Reports states that all 70 mutual funds it selected for CONSISTENCY had double digit returns over last 2 years. The overall average for the 70 is around 12/13%. 2/3 of the funds bested the S&P 500.
Consumers Reports says that it's focus is how OFTEN (by quarter) a specific mutual fund beats the benchmark index over 10 year period. Consumer Reports has produced a new list of only 60 CONSISTENT mutual funds this year. This...
I understand using P/E as a measure of value for stocks:
- low P/E compared to historic data, peers, etc... = potentially cheap
- otherwise, potentially expensive
My question is, is there a similar method for determining prices for broad indexes? Does it make sense to calculate the P/E for the S&P 500, or the Dow, or any of the country or sector indexes?
Is this kind of fundamental information about indexes available anywhere?
I've posted a similar thread on another forum, but was told to ask here.
I've been itching to travel with my job recently and my plan is to work within Canada for 2 years to pay off all debt and save before I head down to Australia. I will be on a working visa initially, but will give me residency after 6 months to 1 year due to my job type. It's too early to decide how long I will stay, or if I plan on staying forever, but I need advice on...
Performance of Index vs Active Portfolios A 15-year (ending 31Dec04) performance comparison between portfolios comprised of the median actively managed funds versus similarly-weighted portfolios of index funds. Indexing continues to beat active by a substantial margin. How does your portfolio measure up?
Swensen, in his book Unconventional Success – A Fundamental Approach to Personal Investment , appears to consider emerging markets, when incorporated into a portfolio for diversification, to be part of the international holdings. This is not stated explicitly but in the example he used to demonstrate portfolio construction, the initial allocation to international was subsequently reduced to make room for emerging markets (EM).
Barclays Global Investors has become a dominant force in the business of running exchange-traded funds, partly on the appeal of the low fees it charges investors on these mutual-fund-like products.
Another aspect of its business that is less well-known to ETF investors: Barclays actively engages in securities lending -- loaning out the stocks and bonds in its iShares ETF portfolios. The loans are...
Liberals send valentine to trust investors
February 14, 2007 | Steven Lamb
Canada must be getting close to another federal election — the opposition Liberal party has unveiled its platform regarding income trusts. Not surprisingly, it is being warmly met by at least one lobby group that sprang to life after the Conservative government's decision to tax trust distributions.
My reading at this site frequently talks about ways to avoid unreasonable charges for buying US equities (ETF's in my case). Norbert's gambit comes up often, as does dealing with IB rather than one of the bank discount brokers.
I finally got around to asking MD management ( which I understand to basically be National Bank) what their forex rate was.
The reply to my e-mail stated: to buy USD - 1.17, to sell USD - 1.159
i am 28 years old and want to start to invest in a portfolio of ETFs (only invested in stocks and mutual funds before). i plan to be 80% in equities and 20% in fixed income but i am not really sure if i sould add private equity (where i am scared that it is just a boom with nothing behind it), currency (thinking of DBV or FXA ) and commodities (maybe a Reuters/Jefferies CRB ETF) as a asset class- to help diversivy, lower volatility and enhance...
During this past year or so I noticed that I am becoming more and more addicted to reading about investing. Actually I am suffering from the information overload right now, but my curiosity doesn’t seem to end at all. I have been cruising through this forum for some time and reading, and reading, and reading… One thing leads to another thing, and I am discovering that I am slowly, but surely, becoming addicted to investing. Is there such a thing...
There are several opinions and schools of thought floating around regarding how many stocks one should hold in a portfolio to maximize returns (while minimizing risk).
As far as I can see there are these:
:arrow: 1. Statistical Standpoint - I've seen the charts etc. I believe the magic number for diversification without redundancy is ~20 individual stocks.
:arrow: 2. Managable Standpoint - Don't hold more stocks in your portfolio than you...
I am very happy to have found this forum and must say that the tone and camaraderie is amazing. I do hope to contribute to the pool of wisdom someday.
Having gathered the courage to become a DIYer recently, I am transferring my accounts from an FSB to E*Trade. A bit overwhelmed by paperwork etc. but hope it will workout in the end.
I am looking forward to your suggestions on the following:
Interactive Brokers has issued me a yearly statement, whereby it identifies the price I paid in a transaction (without commissions), and the closing price associated with the security.
The difference between my cost, and the closing price actually is startling; 13 basis points. Almost a whole years worth of MER on XIU.
Aside from the obvious steps (even lot orders, etc.), any way of reducing this expense? (aside from going with traditional...
myyearbook.com, she started it with her Brother, got some initial money from another Brother, a year later, $4.1 million from Venture Capital, site has 7 figure profit, she starts college in the Fall.
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