Investing

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 Fanatic
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Feb 28, 2006
6528 posts
366 upvotes
Richmond Hill
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.
Sounds like a great idea. So you'd do this yearly? I probably will do the same. I just started with TDDI as well and started e-series early this year. Transaction fee will be $9.99 though each time I buy an ETF while e-series is free to buy/sell so if I follow CCP's ETF portfolio of 25% VCN and ZAG and 50% XAW that'd be $9.99 x 3. Wondering what would be the total portfolio amount that would make the conversion worthwhile to sell all my e-series and transfer over yearly?
Jr. Member
Dec 26, 2010
196 posts
33 upvotes
jeffyjaixx wrote:
Sep 28th, 2017 2:10 pm
Sounds like a great idea. So you'd do this yearly? I probably will do the same. I just started with TDDI as well and started e-series early this year. Transaction fee will be $9.99 though each time I buy an ETF while e-series is free to buy/sell so if I follow CCP's ETF portfolio of 25% VCN and ZAG and 50% XAW that'd be $9.99 x 3. Wondering what would be the total portfolio amount that would make the conversion worthwhile to sell all my e-series and transfer over yearly?
No idea. I just think is a cost of convenience. Maybe you can find another way but would be jumping through hoops etc for 30. If you find a reasoable alternative would love to know.
All in all happy that the MER Fees are super low. eseries is around .35. For other TD funds is 1.6.
On 100k, this is 1.25% difference which is CA$1250!!!
Member
Sep 29, 2007
424 posts
66 upvotes
Frick is anyone getting slaughtered on their bond funds? I've been plowing into them over many years and about 3-4% in the red and certainly not a small $ value. I generally do CCP except for some of my bond stuff is PH&N due to their first quartile ranking. I do not reinvest distributions but rather take the cash...presumably the returns they publish include reinvested interest? The worst part being that I hold in my non taxable accounts (given unfavorable tax treatment of interest income), so I can't even use to offset gains in the future.
Deal Fanatic
User avatar
Feb 28, 2006
6528 posts
366 upvotes
Richmond Hill
garce wrote:
Sep 28th, 2017 2:26 pm
No idea. I just think is a cost of convenience. Maybe you can find another way but would be jumping through hoops etc for 30. If you find a reasoable alternative would love to know.
All in all happy that the MER Fees are super low. eseries is around .35. For other TD funds is 1.6.
On 100k, this is 1.25% difference which is CA$1250!!!
Just did some quick math, so if your portfolio is about $11,100, the difference in MER for the assertive e-series and ETF model portfolio is about $30. So I guess that would be the threshold amount to break even if you switched. If someone can double check the math, it’d be great.
Deal Addict
Jul 23, 2007
3283 posts
1133 upvotes
In the TFSA's I've no plans to purchase ETF's until the portfolio reaches around $120,000. Credit to Andrew Hallam for giving me the idea. Even then, I'll do as I already do in the RRSP's and have a mix of mostly ETF's, but also TD e-Series to mop up any distributions, at least a $100 at a time.

In regards to bond funds they've been down for quite a while, but then I set my allocations a few years ago, and so far, I've no plans to change tack.
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
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.
To be honest I don't like it. It is not diversified, 90% invested in small caps, very risky portfolio.
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
shiangsta wrote:
Sep 27th, 2017 12:03 pm
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
Looks good to me. Very impressive networth for someone of your age.
Sr. Member
Mar 10, 2010
899 posts
102 upvotes
retireat50 wrote:
Sep 28th, 2017 2:53 pm
Frick is anyone getting slaughtered on their bond funds? I've been plowing into them over many years and about 3-4% in the red and certainly not a small $ value. I generally do CCP except for some of my bond stuff is PH&N due to their first quartile ranking. I do not reinvest distributions but rather take the cash...presumably the returns they publish include reinvested interest? The worst part being that I hold in my non taxable accounts (given unfavorable tax treatment of interest income), so I can't even use to offset gains in the future.
Bond funds are definitely down in price, but the distributions have meant that I'm not into negative territory yet, I'm not sure how your returns are being reported, but in my TD account the returns are based solely on price changes and DO NOT account for any distributions, so you may want to check to see if you're really in the red or not.
jeffyjaixx wrote:
Sep 28th, 2017 4:36 pm

Just did some quick math, so if your portfolio is about $11,100, the difference in MER for the assertive e-series and ETF model portfolio is about $30. So I guess that would be the threshold amount to break even if you switched. If someone can double check the math, it’d be great.
Yup, that's what my math generally shows too, which is why I only switch when I hit the $10-15k threshold
Sr. Member
Jan 14, 2010
517 posts
104 upvotes
retireat50 wrote:
Sep 28th, 2017 2:53 pm
Frick is anyone getting slaughtered on their bond funds? I've been plowing into them over many years and about 3-4% in the red and certainly not a small $ value. I generally do CCP except for some of my bond stuff is PH&N due to their first quartile ranking. I do not reinvest distributions but rather take the cash...presumably the returns they publish include reinvested interest? The worst part being that I hold in my non taxable accounts (given unfavorable tax treatment of interest income), so I can't even use to offset gains in the future.
Yes, if not slaughtered then pretty beat up. About 6-8 months ago I changed my additions to FI to go via GICs vs bonds. They are pitiful, but I'm not losing on them (which I have on bond ETFs fairly consistently since unfortunately starting CCP ~18 months ago). Funny enough, I have these in my taxable account for 2 reasons: a) I haven't figured out ACB, etc. to deal with ETFs in my taxable account and b) returns on FI are so much lower than my equities that I might as well pay tax on such a little amount.
Sr. Member
Jun 15, 2012
803 posts
66 upvotes
MB
Germack wrote:
Sep 28th, 2017 8:36 pm
To be honest I don't like it. It is not diversified, 90% invested in small caps, very risky portfolio.
VSS Number of stocks 3507
IJR -602
---
Sir, when you say "risky" you mean more volatile if compared to large cap ?
Thanks
"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
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
Yes, high volatility, high standard deviation of the historical returns --> high degree of risk. If you are able to stomach this high volatility I am sure you will do great over the long-term. It is just nothing for me. Good luck.
Member
Jan 18, 2014
344 posts
24 upvotes
Rouyn-Noranda
Germack wrote:
Sep 30th, 2017 3:37 pm
Yes, high volatility, high standard deviation of the historical returns --> high degree of risk. If you are able to stomach this high volatility I am sure you will do great over the long-term. It is just nothing for me. Good luck.
What about returns? Are they higher historically than for a large-cap or standard index like S&P 500?
[OP]
Deal Addict
Oct 1, 2006
1692 posts
655 upvotes
Montreal
John47 wrote:
Sep 30th, 2017 6:11 pm
What about returns? Are they higher historically than for a large-cap or standard index like S&P 500?
Yes, they were.

30-year percentage return:
US Small Stock Total Return Index: 11.1
U.S. Large Stock Total Return Index: 10.7
Balanced Portfolio (60% Equity, 40% fixed income): 10.7

Percentage returns since 1950:
US Small Stock Total Return Index: 13.4
U.S. Large Stock Total Return Index: 11.0
Balanced Portfolio (60% Equity, 40% fixed income): 9.7

Risk since 1950:
US Small Stock Total Return Index: 24.7
U.S. Large Stock Total Return Index: 17.5
Balanced Portfolio (60% Equity, 40% fixed income): 10.2
Newbie
Sep 18, 2017
31 posts
37 upvotes
Another couch potato here. $1,675,000 between the wife and I. 47 years old. 75/25 equities/bonds. Love the simplicity, low fees, no market timing, no trying to beat the market. I spent many years buying mutual funds and individual stocks. Realized there are many things I am good at but a KISS portfolio works best for me. Net worth now increasing at around $500k/year. Lots of assets outside of the portfolio.

Cheers!
Member
Jul 27, 2017
499 posts
139 upvotes
GTA
FUMONEY wrote:
Oct 3rd, 2017 4:36 pm
Another couch potato here. $1,675,000 between the wife and I. 47 years old. 75/25 equities/bonds. Love the simplicity, low fees, no market timing, no trying to beat the market. I spent many years buying mutual funds and individual stocks. Realized there are many things I am good at but a KISS portfolio works best for me. Net worth now increasing at around $500k/year. Lots of assets outside of the portfolio.

Cheers!
Brilliant, well done, congratulations.

Would you mind sharing some of the secrets to your success in building those assets....broad brush?

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