Investing

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

  • Last Updated:
  • Oct 19th, 2017 9:20 pm
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Newbie
Sep 18, 2017
23 posts
31 upvotes
jerryhung wrote:
Oct 9th, 2017 9:06 pm
Net worth increasing $500K a year?????? not just from stocks right? b/c it takes $10M assets at 5% = $500K a year

Congrats regardless
Not just from stocks. I have significant income (this year particularly high) and am adding six figures to retirement portfolio every year. Also, increase in business equity value as we have record year after record year, decrease in commercial business term loan, increase in property values, etc.
Member
Jul 27, 2017
426 posts
98 upvotes
GTA
FUMONEY wrote:
Oct 10th, 2017 11:03 am
Not just from stocks. I have significant income (this year particularly high) and am adding six figures to retirement portfolio every year. Also, increase in business equity value as we have record year after record year, decrease in commercial business term loan, increase in property values, etc.
A $500k increase this year on a net worth of $4 million, is truly amazing for a 47/48 year old
FUMONEY wrote:
Oct 4th, 2017 1:45 pm
Conservative net worth (combined with my wife) is $4,000,000. Assets of $4,600,000 as of October 1st and around $560k in liabilities. Debt is a $368k mortgage on an investment property (fully deductible against income).

Principal residence mortgage free and worth somewhere around $1.3M

Not done yet, plan on aggressively growing this to at least $6-7M by 53-55 and then winding down.
Let me see if I can itemize better where that $500k increase in net worth may have come from.

Any comment or response to making any changes to what I post below with a percentage change 2016 to 2017 that would be great?

- a bump in the value of personal residence & investment real estate?

- your stock portfolio has surpassed itself?

- you have drastically reduced or got rid of that $500k+ debt?

- your portion of the equity in the business venture has improved?

- you had a huge bump in salary that is added to all the value of everything else?
[OP]
Deal Addict
Oct 1, 2006
1655 posts
585 upvotes
Montreal
carmaster wrote:
Oct 10th, 2017 10:53 am
So what is your networth today?
Around 1.175 million. (Networth: +140k; Rate of return of portfolio: 8.8%; since 01Jan2017)
[OP]
Deal Addict
Oct 1, 2006
1655 posts
585 upvotes
Montreal
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!
Very impressive. Congrats!
Deal Addict
May 31, 2007
4237 posts
1374 upvotes
FUMONEY wrote:
Oct 10th, 2017 11:03 am
Not just from stocks. I have significant income (this year particularly high) and am adding six figures to retirement portfolio every year. Also, increase in business equity value as we have record year after record year, decrease in commercial business term loan, increase in property values, etc.
Congrats on your success!!

What funds do you use and I assume most of your portfolio is non-reg?
Newbie
Sep 18, 2017
23 posts
31 upvotes
Jungle wrote:
Oct 10th, 2017 4:21 pm
Congrats on your success!!

What funds do you use and I assume most of your portfolio is non-reg?
XIC, VTI, XEF, XSB. Over a million in our two RRSPs and the rest non-reg and TFSA. Non-reg growing quickly, another $40k going into the wife’s tomorrow.
Deal Addict
May 31, 2007
4237 posts
1374 upvotes
FUMONEY wrote:
Oct 10th, 2017 6:03 pm
XIC, VTI, XEF, XSB. Over a million in our two RRSPs and the rest non-reg and TFSA. Non-reg growing quickly, another $40k going into the wife’s tomorrow.
Great choice I use three of same funds. Do you have any plan or strategy to deplete rsp and save tax?
Deal Addict
Jan 20, 2016
1211 posts
431 upvotes
Burlington, ON
FUMONEY wrote:
Oct 10th, 2017 6:03 pm
XIC, VTI, XEF, XSB. Over a million in our two RRSPs and the rest non-reg and TFSA. Non-reg growing quickly, another $40k going into the wife’s tomorrow.
Just curious why do not replace VTI+XEF by XAW? You'd get automatic rebalancing and even a bit of small caps and EM with it.
Deal Addict
May 31, 2007
4237 posts
1374 upvotes
Was googling average net worth Canada. Stumbled upon Financial Post article quoting info from "Cap Gemini/RBC Wealth Management 2015 World Wealth Report" (3 years ago) study of net worth / investable assets.

*investable asset does not include real estate, or personal belongings. (car, jewelry, boat, etc)

298,000 individuals (1%) had investable assets between 1-5 million USD
30,000 ( 0.1% )had between 5-30 million USD investable assets
3300 had over 30 million USD investable assets


So for those with individual 1m+ portfolios, you are minority.
Deal Fanatic
User avatar
Sep 13, 2003
8667 posts
565 upvotes
Wondering opinion for Couch Potato ETF portfolio. http://canadiancouchpotato.com/wp-conte ... s-2016.pdf

Now I have RRSP, TFSA, and non-registered. What's the most efficient way to put what, in which account? I saw someone say buy ZAG in RRSP only. Other two, can buy in TFSA and non-registered. Or some people buy all 3 in each account. But than I have to pay $10 for each trade, using TD Waterhouse. I guess these things have to do with taxes?
One blind human - a tragedy
Ten blind humans - a disaster
One million blind humans - a statistic
Newbie
Sep 18, 2017
23 posts
31 upvotes
asa1973 wrote:
Oct 10th, 2017 7:08 pm
Just curious why do not replace VTI+XEF by XAW? You'd get automatic rebalancing and even a bit of small caps and EM with it.
Interesting you ask as I am about to move 50% of the kids RESP account to XAW. I may do that in the future for wife and I but for now happy with our holdings. Maybe its just that I love looking at the gains on VTI in our accounts! Smiling Face With Open Mouth
Newbie
Sep 18, 2017
23 posts
31 upvotes
Jungle wrote:
Oct 10th, 2017 7:00 pm
Great choice I use three of same funds. Do you have any plan or strategy to deplete rsp and save tax?
We will start depleting the RRSP's after I retire at 52-53. As there will likely be over $1.5M in our combined RRSPs at that point even taking combined $80k a year wouldn't do anything but prevent more growth. Will take enough each year to get us up to moderate tax bracket but I will still have business income after retirement as my equity is bought out over a period of 4-5 years. Mega taxation is a reality today and will continue in retirement. Having big fat non-reg accounts will help.
Member
Jul 27, 2017
426 posts
98 upvotes
GTA
FUMONEY wrote:
Oct 11th, 2017 8:17 am
We will start depleting the RRSP's after I retire at 52-53. As there will likely be over $1.5M in our combined RRSPs at that point even taking combined $80k a year wouldn't do anything but prevent more growth. Will take enough each year to get us up to moderate tax bracket but I will still have business income after retirement as my equity is bought out over a period of 4-5 years. Mega taxation is a reality today and will continue in retirement. Having big fat non-reg accounts will help.
That seems like a great plan.

So at 52/53 (6 years from now) your net worth will be in the $6 - $7 million range?

Will it just be you & your wife or will the children still be at home when you retire?

Any thoughts on how you will spend your time not working & being home with your wife 24/7?
Deal Fanatic
Jul 4, 2004
7152 posts
530 upvotes
Toronto
Opening myself up for some critique:

Started out on the CCP model with ZDB/XAW/VCN.

My RRSP currently holds XAW.

My TFSA holds all of the ZDB, some more XAW and a bit of VCN.

My Cash holds the rest of XAW, and most of the VCN.

I still have quite a bit of RRSP room remaining. I want to make a lump sum contribution and the rebalance everything, along with making my portfolio much more aggressive (I went a bit soft on my risk tolerance first go around and would rather see fluctuations in my portfolio rather than a bunch of bonds doing barely anything for me. I'm 33, I have time). Not sure if I should contribute just enough to push me out of the 26% tax bracket (i.e. to lower my income to under $91.8k) or if I should just throw all of it in there. Not sure to what degree ducking tax via RRSP contribution makes sense or whether it's at all a factor in how much to contribute vs just maxing RRSP if I can. It isn't a topic that is widely discussed here.

Open to thoughts on fund choice and allocation between accounts too. Thx.

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