Intro/portfolio help

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

https://1drv.ms/x/s!AuFPIMQ-jCMrecW-8IzgJhv9xoo
Revisited my cashflow as Altred suggested. I used "The cost of retirement happiness" from MoneySense as my guide & adjusted for inflation. The cashflow is for myself as not sure when girlfriend will be retiring & how much she will be contributing.
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Hey guys
Can't get Steve's program to work with our computers. As much as I like it,I'm giving up on it. I've spent the last week trying to figure out a solution. If he updates it in the future I will get it then.
Posted an updated cash flow above & will work the other suggestions from Quebec & Altared.
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Re: Intro/portfolio help

Post by Strengthnhealth »

https://1drv.ms/x/s!AuFPIMQ-jCMrfb7U8rUemAKnbJM

Updated Cashflow. Not sure how accurate income tax is, found a lot of conflicting info online.
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Re: Intro/portfolio help

Post by Joebaba »

Hi,

Regarding RRIFMetic - have you seen my old post about getting it running on Windows 10?

http://www.financialwisdomforum.org/for ... 15#p585115

Joe
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Joebaba wrote: 22 Aug 2017 23:19 Hi,

Regarding RRIFMetic - have you seen my old post about getting it running on Windows 10?

http://www.financialwisdomforum.org/for ... 15#p585115

Joe
Hi Joe
Yes read your post earlier but didn't have any luck with the girlfriends laptop which has windows 10. Does it matter which version of windows 10 you have? Think hers is home not pro.
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Quebec wrote: 25 Jul 2017 14:56 Hi,

Welcome to the forum.

What comes 1st, IMO, is the big picture stuff:

---

1. What is your goal with these investments? You mention retirement in 5 years. But will you need to make withdrawals immediately at age 60? To know this (if you don't already), you need a retirement cash flow projection. How much do you need every year to live on, during retirement, in today's dollars?

On the revenue side, consider what could be taken from your your investment accounts but also CPP, OAS, and your workplace pension, which you should get more details on by obtaining an up-to-date statement or projection from your pension fund. Look into whether you should delay CPP, OAS, and your pension to age 65 or even 70, drawing 1st on your investment accounts.

Revenues in your projection need to equal or exceed expenses every year, obviously. This will tell you how much is needed from your investment accounts every year.


2. You can then get a very rough idea of what portfolio size is needed by dividing the desired initial yearly withdrawal by 0.04 (the ''safe withdrawal rate'') or if very conservative, maybe 0.03. Do you think you can get to this portfolio size within 5 or 6 years, by assuming a moderate investment return and your planned contributions? If not, revisit your budget, projected retirement age, savings goal, etc. until the numbers work... (there are alternative ways to look at withdrawal rates such as VPW).

3. Now we get to the asset allocation stage, which is where some reframing is needed so we understand your current situation better. What's your current overall asset allocation between cash, fixed income (bonds, GICs) and stocks? Use one currency only, the most relevant one to you, e.g. convert USD to CAD if needed. If a mutual fund contains more than one asset class, break it into its components (cash, fixed income, stocks). Combine all accounts into one unified allocation. Does that current allocation seem reasonable given your goal? Do you need/want to change it?

---

When you know your desired asset allocation, you can look at what products, currencies and accounts will work best for you. That can be addressed later.

Cheers, -Qc
1) Think my Cashflow covers most of this now.

2) I like Longinvest's VPW, seems to make more sense than the 4%.
If I don't withdrawal RRSP's until 71, that gives me 15 years for them to grow.

3) I thinking 25% Canadian equity, 25% US equity, 25% international equity & 25% Canadian bonds. Should have enough fixed income with my company pension, CPP ect.
Moving the money out of CIBC to Questrade. May put some my money with TD into bonds.
I like the idea of low cost etf index funds with questrade.
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Strengthnhealth wrote: 23 Aug 2017 01:16
Joebaba wrote: 22 Aug 2017 23:19 Hi,

Regarding RRIFMetic - have you seen my old post about getting it running on Windows 10?

http://www.financialwisdomforum.org/for ... 15#p585115

Joe
Hi Joe
Yes read your post earlier but didn't have any luck with the girlfriends laptop which has windows 10. Does it matter which version of windows 10 you have? Think hers is home not pro.
Hers is 10 home.
Checked under Legacy but all there is direct play.
Joebaba
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Re: Intro/portfolio help

Post by Joebaba »

Hi,

I know NTVDM doesn't work in 64 bit WIndows 10. But it should work with 32 bit Windows 10.

You might check out this article showing how to enable it - though it sounds like it's just not showing up in your legacy list.

https://www.groovypost.com/howto/enable ... indows-10/

Joe
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Re: Intro/portfolio help

Post by Strengthnhealth »

It is the 64 bit windows 10.
Thanks Joe
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Re: Intro/portfolio help

Post by Strengthnhealth »

Hi all
Moving everything over to Questrade. Waiting for two trans to finish, slow process.
Sold off most of my closed end funds. $33,000 USD left to sell, waiting for them to increase in value so I can at least break even.
I'm mostly in a cash position now, 50/50 between USD & CAD. When our dollar drops down I will switch some of this back to CAD, probably what's in my TFSA & margin account.

I'm looking at a 4 or 5 ETF PORTFOLIO based on the finiki/ couch potato models, 25% to each asset class.
Going to buy US & International indexes with the USD(NYSE). Bonds & Canadian equity with the CAD. Just waiting for the trans to be completed.
Little nervous about pulling the trigger with the way the stock market is now though.
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Hey guys
This is what I'm looking at.
25% into US equity with either VTI or VOO with the US cash.
25% into international with either XAW, XEF, VXC
25% into Canadian with VCN or XIC
25% into bonds with VAB or ZAG.
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Re: Intro/portfolio help

Post by GreatLaker »

The three ETFs you propose for your 25% international are not equivalent. XAW and VXC are all world ex-Canada funds, i.e. USA, global developed and emerging markets. XEF is global developed markets only, i.e. no USA and no emerging markets.

You could achieve your target allocation with 50% XAW or VXC, 25% VCN or XIC, and 25% VAB or ZAG.

Alternately 25% VTI or VOO, 25% XEF, 25% XIC or ZCN and 25% VAB or ZAG. Note that this would exclude emerging markets. VTI + XEF would be more tax efficient in a RRSP than XAW or VXC.
When I was young, I was poor. Now, after years of hard work, I am no longer young.
Strengthnhealth
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Re: Intro/portfolio help

Post by Strengthnhealth »

Thanks for the input GreatLaker.
I'll stick with the VTI or VOO as I have USD for them.
Hadn't considered ZCN though.
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