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Couch potato investing for the last 12 years - tracking my progress

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  • Jan 18th, 2018 3:30 pm
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Deal Addict
Jul 15, 2006
3085 posts
251 upvotes
Thanks for the responses, this is good info. Sounds like I'll have to tweak the contribution schedule.
[OP]
Deal Addict
Oct 1, 2006
1725 posts
716 upvotes
Montreal
Cress wrote:
Aug 12th, 2017 10:36 am
Awesome contributions all around to this thread.
In preparation for moving to the couch potato strategy, I'm planning to move some of my current RSP funds from my employer based vendor to a direct investing platform. Following that, I'm planning to grab the Aggressive model (60% XAW, 30% VCN and 10% ZAG) and sticking to it for the next little while. I am hoping you guys can help me answer a couple of questions.
  1. Do you guys see any concerns with just doing three big transactions and get it all invested right off (three transaction fees) or should I plan this over a period of time? We're talking just about 100K?
  2. I'm planning to repeat this and move money once every couple of years or so once I get enough to justify a transfer (say over 10 to 15K).
Is this a sound strategy or should I forget about the yearly transfers and just try and do more frequent contributions and just suck up the fees?

Thanks in advance.
No concerns with just doing three big transactions and get it all invested right off. Based on historical data it has the higher expected value as compared to slowly investing the money over time.
Jr. Member
Mar 30, 2006
133 posts
89 upvotes
Edmonton
Why not chose VFV over XUS if you won't like the spread of XUU?
Jr. Member
Jan 13, 2016
170 posts
40 upvotes
Vancouver, BC
I know when i compared XUS and VFV you needed a lot less to drip with XUS. You don't need a lot to drip XAW eiether. Still i find calculating drips confusing so i could be wrong.
Deal Addict
User avatar
Dec 14, 2006
2903 posts
160 upvotes
Montreal
Hello folks,

I invested following the CCP strategy, i went 25% VCN, 50% XAW and 25% ZAG, this is for a TFSA and i'm in my low 30s.
It's been around 6 months and my P&L is negative all across the board since almost the beginning. I bought at mkt price at the time.

Should I change my strategy ? Invest in other ETFs ?
I was there at the 32$ price error at dell.ca day AND at the 150$ off price error at fs.ca
RFD price error moto: "Buy now, think later." -Ahzuz
Deal Addict
User avatar
Sep 1, 2013
1405 posts
318 upvotes
New Tecumseth, ON
Ahzuz wrote:
Aug 22nd, 2017 7:05 pm
Hello folks,

I invested following the CCP strategy, i went 25% VCN, 50% XAW and 25% ZAG, this is for a TFSA and i'm in my low 30s.
It's been around 6 months and my P&L is negative all across the board since almost the beginning. I bought at mkt price at the time.

Should I change my strategy ? Invest in other ETFs ?
Everything is on sale, buy more.
Just because you can doesn't mean you should.
Jr. Member
Jan 16, 2009
151 posts
67 upvotes
Ahzuz wrote:
Aug 22nd, 2017 7:05 pm
Hello folks,

I invested following the CCP strategy, i went 25% VCN, 50% XAW and 25% ZAG, this is for a TFSA and i'm in my low 30s.
It's been around 6 months and my P&L is negative all across the board since almost the beginning. I bought at mkt price at the time.

Should I change my strategy ? Invest in other ETFs ?

Hey Ahzuz. What you are describing is the perfect example of behavioural finance. You are overthinking things and paying too much attention to your investments. Remember, it's called "passive" investing for a reason.

As mentioned previously in this thread the Canadian dollar has been doing well this year compared to the USD so even though the S&P 500 may have posted a return it was wiped away by the appreciating dollar. The idea is to just keep on investing and follow your plan through the thick and thin (just like Germack did thought 2008).

Remember, the largest factor in determining investment success is your savings rate, not necessarily the products you choose. Hell, there are people that went their entire working career invested in actively managed mutual funds charging 2.5% per year and they are currently enjoying a comfortable retirement due to their high savings rate.
Deal Addict
User avatar
Aug 1, 2007
1302 posts
145 upvotes
Ahzuz wrote:
Aug 22nd, 2017 7:05 pm
Hello folks,

I invested following the CCP strategy, i went 25% VCN, 50% XAW and 25% ZAG, this is for a TFSA and i'm in my low 30s.
It's been around 6 months and my P&L is negative all across the board since almost the beginning. I bought at mkt price at the time.

Should I change my strategy ? Invest in other ETFs ?
Be patient and understand that you will see losses from time to time. Stay disciplined, rebalance when making deposits or once or twice a year. Stick to the plan.
Deal Addict
User avatar
Dec 14, 2006
2903 posts
160 upvotes
Montreal
Thanks everyone.

I'm making a 10k deposit now - will stick to the strategy.
I was there at the 32$ price error at dell.ca day AND at the 150$ off price error at fs.ca
RFD price error moto: "Buy now, think later." -Ahzuz
Jr. Member
May 15, 2015
190 posts
57 upvotes
North York, ON
I'm doing TD e-Series (25/25/25/25 couch potato) since May 2017 and it has gone down quite a bit. Any advice? I have a lump sum of money right now and I'm not sure whether I should throw more at the TD e-Series.
Deal Addict
Jan 20, 2016
1510 posts
587 upvotes
Houston, TX
funnykiddy wrote:
Aug 23rd, 2017 1:58 pm
I'm doing TD e-Series (25/25/25/25 couch potato) since May 2017 and it has gone down quite a bit. Any advice? I have a lump sum of money right now and I'm not sure whether I should throw more at the TD e-Series.
Couch potato investing for the last 12 years
- time=money, you've been investing for 3 month and already going alternate your long term based goals on short-term observations??
3 from 4 times lump sum investing have better results then spreading it over the time. It's dozen days per year when most gain is made on market, will you prefer to miss them waiting on a side with money ALREADY available?

My imo - invest what you are going to do as it available. If you have concern about your AA - yes, you can think about it and change if you found this appropriate.
For me 25/25/25/25 is quite fine AA if you have 10 or more years ahead
Make the Trudeau drama teacher again!
[OP]
Deal Addict
Oct 1, 2006
1725 posts
716 upvotes
Montreal
funnykiddy wrote:
Aug 23rd, 2017 1:58 pm
I'm doing TD e-Series (25/25/25/25 couch potato) since May 2017 and it has gone down quite a bit. Any advice? I have a lump sum of money right now and I'm not sure whether I should throw more at the TD e-Series.
Your investment success will depend on if you are able to stick to your investment strategy no matter what will happen. If you are already worried about this tiny drop, investing in equities may not be for you.

Yes, the best option would be to invest your lump sum into more TD eseries.
Jr. Member
May 15, 2015
190 posts
57 upvotes
North York, ON
Will probably pull the trigger today. Advice much appreciated!!

I understand the principle behind buy and hold for long-term growth, I guess I'm having trouble putting it into practice what with all the worrisome news around the world.
Newbie
Jan 23, 2017
44 posts
48 upvotes
I have maxed out my 2 children's RESP contributions for the 2017 year. Fortune would have it that I have an extra $5000 that I am able to invest specifically towards their future. Should I invest that immediately into ETFs (e.g. 25% XIU, XEF, XUS, XBB) in a non-registered cash account and transfer the shares into their RESP in January 2018? Or should I simply hold the cash for 4 months until Jan?

In thinking it through, the only reason to invest now would be to gamble on a gain in the next 4 months, which would be taxable anyways. I'm leaning towards just holding the cash ... any other things I'm not considering?
Deal Addict
Jan 20, 2016
1510 posts
587 upvotes
Houston, TX
imclumzy wrote:
Aug 24th, 2017 3:07 pm
I have maxed out my 2 children's RESP contributions for the 2017 year. Fortune would have it that I have an extra $5000 that I am able to invest specifically towards their future. Should I invest that immediately into ETFs (e.g. 25% XIU, XEF, XUS, XBB) in a non-registered cash account and transfer the shares into their RESP in January 2018? Or should I simply hold the cash for 4 months until Jan?

In thinking it through, the only reason to invest now would be to gamble on a gain in the next 4 months, which would be taxable anyways. I'm leaning towards just holding the cash ... any other things I'm not considering?
If you'll transfer them in kind, it will be not taxable, no?
P.s. you can use MAW105 to avoid distribution and paying taxes on them, IF capital gains will be UNtriggered by transfer to RESP, you'll pay no taxes.
Make the Trudeau drama teacher again!

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