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

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  • Dec 13th, 2017 8:32 pm
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Deal Addict
Sep 13, 2003
1210 posts
85 upvotes
For some of you managing your family's CCP as one whole portfolio for retirement, do you manage and rebalance your significant other's account separate from your own even though you managing everything as one CCP?

Say for example, let's say you need to add 50K to bonds, 50k to cad, 50k to ex-cad.

tfsa1, rrsp1 - yours
tfsa2, rrsp2 - husband/wife
non-reg - joint

Would you add 25k each to tfsa1 and tfsa2, and 25k to rrsp1 and rrsp2 and 50k into non-reg?
Or do you add 50k to either tfsa1 or tfsa2, 50k to either rrsp1 or rrsp2 and 50k into non-reg?

What do you guys recommend?
Jr. Member
Jan 16, 2009
151 posts
67 upvotes
Germack wrote:
Sep 18th, 2017 9:01 am
Very good blog posts. Why do you want to hold them in your non-registered account? Your RRSP /TFSA are maxed?
That's correct. My TFSA and RRSP are maxed with the majority of my Canadian equity in the non-registered. I have to decide if I should follow Justin's suggestions and begin to purchase US Equity in the Non-reg while keeping the International and Emerging Markets in the RRSP or leave the RRSP as is and purchase both International and US Equity in the non-reg. Good problem to have I know but makes things a bit tricky with regards to taxes.
Deal Addict
Jan 20, 2016
1433 posts
554 upvotes
Houston, TX
porticoman wrote:
Sep 16th, 2017 8:48 am
So true & I guess I missed that simple point of how to go from $15,000 to $1.1 million in 12 years like the OP has done

CCP as I now understand it is a) about slow steady growth investing in indexed funds/mutual funds & b) that if someone wants to get there faster with a huge 'pot of gold' that they must keep continuously adding in huge top up's to the investments + a certain amount of luck may add a part to it

It really is that simple
I'm really confused with your point...

OP several times showed distribution between savings and income (50/50 roughly)

One can see that 1M is achievable with average 8% return (CCP site) over 12 years with 40K yearly addition (0.5M over 12 years) in reg (10k TFSA, 30k RRSP) accounts

http://www.moneychimp.com/calculator/co ... ulator.htm
(or any other compound calc)

Current Principal: $
50,000.00
Annual Addition: $
40,000.00
Years to grow:
12
Interest Rate:
8
%
Compound interest
1
time(s) annually
Make additions at start end of each compounding period

Calculate
Results
Future Value: $
945,720.37
Make the Trudeau drama teacher again!
Deal Addict
May 31, 2007
4421 posts
1527 upvotes
drey wrote:
Sep 18th, 2017 9:34 am
For some of you managing your family's CCP as one whole portfolio for retirement, do you manage and rebalance your significant other's account separate from your own even though you managing everything as one CCP?

Say for example, let's say you need to add 50K to bonds, 50k to cad, 50k to ex-cad.

tfsa1, rrsp1 - yours
tfsa2, rrsp2 - husband/wife
non-reg - joint

Would you add 25k each to tfsa1 and tfsa2, and 25k to rrsp1 and rrsp2 and 50k into non-reg?
Or do you add 50k to either tfsa1 or tfsa2, 50k to either rrsp1 or rrsp2 and 50k into non-reg?

What do you guys recommend?
For me, every account has a couch potato, 25% weighting for 4 funds. (CAD, US, INT, BONDS). So much easier and simpler to manage. (8 accounts). Plus if something happens to me, very easy for my wife to seek guidance and understand each account's asset allocation.

Advantages:

1.No account grows too big- all growth balanced and even with other accounts. (think of holding s&p 500 in your RSP since 2008, VRS your TFSA!)
2. Very easy to allocate contributions
3. Simple and easy



If contribution goes in, very easy calculation for allocation. No need to balance multiple accounts, or end up with unattended account balances. (like large RSP vs small TFSA)
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
Interesting article. Research by Vanguard shows that a total-return approach is superior to one that focuses on dividend strategies.

http://ow.ly/NXKy30ff1bK
Deal Addict
May 31, 2007
4421 posts
1527 upvotes
Germack wrote:
Sep 18th, 2017 4:06 pm
Interesting article. Research by Vanguard shows that a total-return approach is superior to one that focuses on dividend strategies.

http://ow.ly/NXKy30ff1bK
I believe dividend strategy increases behaviour risk (buying and selling at wrong time), improper portfolio management and higher chance of choosing bad stock picks.

Just don't pick one of these "biggest stock collapses of all time" or future bankrupt company. Good luck trying to figure out which one is next, or coming in 10-20 years:

http://www.dividend.com/dividend-educat ... -all-time/

"The dividend stock world is littered with its fair share of recent disasters. The factors that led to the downturn of once mighty dividend payers vary greatly. Some companies simply failed to change with the times, while others have incompetent management to blame. Still others took on massive risks that eventually came back to bite them. Most of these companies exhibited at least one of the following signs before their massive dividend cuts: a sharply falling share price, or a lack of dividend raises over a long period of time. If investors do their homework and heed these warning signs, they should be able to avoid dividend blow-ups like the ones profiled above."

I don't believe the last statement is possible for most without being extremely lucky.
Deal Fanatic
Jul 4, 2004
7233 posts
566 upvotes
Toronto
bubak wrote:
Sep 12th, 2017 7:50 pm
I'm not seeing red. Anyone who started their CPP anytime before the beginning of 2017 is almost guaranteed to be in the black right now.
Yes, the tear we were on earlier in the year is just dampened in the last few months, largely due to the gains in the CAD vs USD. Crappy, but it's cheaper to buy from Amazon USA now, so..............
Sr. Member
Jan 14, 2010
517 posts
104 upvotes
drey wrote:
Sep 18th, 2017 9:34 am
For some of you managing your family's CCP as one whole portfolio for retirement, do you manage and rebalance your significant other's account separate from your own even though you managing everything as one CCP?
We do the asset allocation over all account per person (ie separate between spouses) It works for us, because one spouse's risk tolerance is lower than the other's.
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
retireat50 wrote:
Sep 16th, 2017 3:38 pm
For me a big thing was ditching the mortgage ASAP. I know technically the math works better to extend the mortgage but sorry the peace of mind of owing $0 to anyone is worth it. Then once mortgage is paid off dump those savings into CCP - for most people that will be 20K+ per year once the mortgage is gone. Granted i bought my house in 2002 when they were actually reasonably priced.
Exactly, I think the same. A lot of our money goes towards paying down the mortgage instead of investing it in a CCP. We should be done with the mortgage in 2.5 years and then we should be truly financially independent.
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
drey wrote:
Sep 18th, 2017 9:34 am
For some of you managing your family's CCP as one whole portfolio for retirement, do you manage and rebalance your significant other's account separate from your own even though you managing everything as one CCP?

Say for example, let's say you need to add 50K to bonds, 50k to cad, 50k to ex-cad.

tfsa1, rrsp1 - yours
tfsa2, rrsp2 - husband/wife
non-reg - joint

Would you add 25k each to tfsa1 and tfsa2, and 25k to rrsp1 and rrsp2 and 50k into non-reg?
Or do you add 50k to either tfsa1 or tfsa2, 50k to either rrsp1 or rrsp2 and 50k into non-reg?

What do you guys recommend?
Each of us have their own "CCP" portfolio. A lot of my spouse money is invested in MAW104. A CCP is too complicated for her.
Jr. Member
Dec 26, 2010
196 posts
33 upvotes
White Comet wrote:
Sep 13th, 2017 11:44 pm
Because I'm with TDDI, would it be a viable option to contribute only once a year in a lump sum since the fees on each transaction aren't cheap. In addition, is there a difference in the CAD$ vanguard funds and the US$ vanguard funds? Seems like the US$ vanguard funds have better returns? But the exchange rate kind of kills the deal no?
I am also with TDDI.
I have combination:
1. Initial Lump sum on ETF CCP (TDDI $10 per thread but there was a promotion. So $0)
2. Twice a month contribution to TD eseries CCP
3. Yearly sell TD eseries CCP and move to ETF CCP with rebalancing

I started recently CCP so havent gotten to #3 yet.
Sr. Member
Mar 10, 2010
899 posts
102 upvotes
garce wrote:
Sep 22nd, 2017 8:17 pm
I am also with TDDI.
I have combination:
1. Initial Lump sum on ETF CCP (TDDI $10 per thread but there was a promotion. So $0)
2. Twice a month contribution to TD eseries CCP
3. Yearly sell TD eseries CCP and move to ETF CCP with rebalancing

I started recently CCP so havent gotten to #3 yet.
I second this approach as it's what I do. I only switch funds to ETF's from my e-series once I have ~$10-15k built up in the e-series as that means the cost of the trades is offset by the reduction in MER over a one year time frame.

The only difference between the Vanguard US$ and CAD$ is the lower MER of the US$ funds, performance will be the same +/- small amount of noise, but you do have to worry about currency conversion which can be problematic.
Sr. Member
Jun 15, 2012
803 posts
66 upvotes
MB
Germack and others what do you think about my idea of an alternative CP portfolio?

--10% BSV
--45% IJR
--45% VSS

Plain and simple.
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
Deal Addict
Jul 23, 2007
3283 posts
1133 upvotes
ukrainiandude wrote:
Sep 26th, 2017 9:00 pm
Germack and others what do you think about my idea of an alternative CP portfolio?

--10% BSV
--45% IJR
--45% VSS

Plain and simple.
Up to you, but a portfolio consisting of 90% small cap would be way too risky for me. Since all three seem to be U.S. based ETF's it's a question you may want to consider posting over at the Bogleheads forum.
Jr. Member
Jan 25, 2012
182 posts
61 upvotes
NORTH YORK
Thoughts on my portfolio? I only have registered accounts right now and I'm 32 years old. House worth ~800k with 320K mortgage.

RRSP
30% VV
15% VGK
9% VPL
6% VWO
10% VAB

TFSA
30% VCN

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