One thing that I've been on the hunt for is a nice clear and concise tutorial for purchasing ETF's. I mean, a plain language, straight forward primer on purchasing them via an online brokerage (or online banking). Have you ever come across anything like that? I like your suggestion re: balancing for each account - again, simplicity (for me) is key, and the savings are moot if I'm not consistently following a plan due to doubt or confusion regarding balancing across all accounts.One thing I never liked was CPP suggestion to make accounts tax efficient and base allocation as "one big portfolio"
I found this to get complicated after 8 accounts (2X RSP, 2X TFSA, 2Xpension, 1X joint non-reg + RESP this just was not simple enough for me. Some problems I ran into
RSP got bigger than I want because CPP white paper said to put USD etf inside it. (tax efficient, right?) Well the s&p500 in CAD went over 4/fold since 2008, so now I have large RSP and TFSA is smaller.
Not sure how this is tax "optimized" but everything balanced would have been so much easier.
Also without all funds in each account, I found it sometimes hard or impossible to rebalance.
and I question the tax savings from doing norbet's gambit and using USD listed ETFS I don't even think is worth it because CAD etf track SO well now and they convert currency for fraction of the cost. I've tried to look at historical returns of USD vs CAD efts, but it's extremely hard to narrow down because not every ETF tracks index perfect every year (but almost and over long period of time)
So this year I finally said "forget it" and finally did what I wanted to do: make each account simple, and balanced. SO much easier to keep track and for making contributions.
This is what I have and suggest (all 25% weighting)
RESP has legacy vanguard, I shares, and horizon.
I chose ISHARES because I believe they are the biggest (most AUM) and liquid. I've seen huge spreads on ETFS before that are new(er) to the market. Liquidity is important to me and I don't want the market to be gouging on a huge spread between bid and ask should I have to rebalance one day or during a stock market crash.
I left legacy USD in RSP because I don't wan to pay converting it back right now. But I don't even suggest using USD funds anymore because of the complexity of conversion. (norbert's gambit) and unflattering and uncertain results from doing it over the long run.
I will be done soon to fill the non-reg back up, this is what I'm using to lower distribution tax as it cuts into my CTB:
Good luck and try to get into those efts I suggested above (TFSA)
Last edited by Jungle on Jul 26th, 2017 5:00 am, edited 1 time in total.
Thanks for the info - definitely going to look into the ETFs you've mentioned.