Investing

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

  • Last Updated:
  • Oct 22nd, 2017 11:46 am
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Newbie
Mar 19, 2016
31 posts
4 upvotes
canada
FUMONEY wrote:
Oct 11th, 2017 8:02 am
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
First off, very impressive and well done.

Do you do all the investing yourself or do you have an advisor? If so when did you start using them, if not are you going to?
Newbie
Sep 18, 2017
24 posts
31 upvotes
dustinsa wrote:
Oct 12th, 2017 7:44 am
First off, very impressive and well done.

Do you do all the investing yourself or do you have an advisor? If so when did you start using them, if not are you going to?
Had an adviser for a few years when I was in my late 20's, early 30's. Always found it hard to reach him and didn't love the product mix he had me in. Opened a self directed account and started reading about investing. Got serious about it only 8-9 years ago and started index investing in 2011. Now its my favourite hobby lol.
Deal Addict
Jan 20, 2016
1214 posts
436 upvotes
Burlington, ON
FUMONEY wrote:
Oct 12th, 2017 8:59 am
Had an adviser for a few years when I was in my late 20's, early 30's. Always found it hard to reach him and didn't love the product mix he had me in. Opened a self directed account and started reading about investing. Got serious about it only 8-9 years ago and started index investing in 2011. Now its my favourite hobby lol.
Remember, professionals built the Titanic and an amateur built the Ark (c) Father Brown
Member
Jul 27, 2017
443 posts
103 upvotes
GTA
asa1973 wrote:
Oct 12th, 2017 10:14 am
Remember, professionals built the Titanic and an amateur built the Ark (c) Father Brown
+1

What do professionals know that jane/joe public doesn't, even the top 5 hedge fund managers?

Why not invest in what the hedge fund managers invest in?

(Jim) James Simons

https://www.holdingschannel.com/top/sto ... im-simons/

David Tepper

https://www.tipranks.com/hedge-funds/david-tepper

https://seekingalpha.com/article/409972 ... 017-update

or the 50 cent vix trader

http://www.businessinsider.com/vix-vola ... own-2017-8
Deal Addict
User avatar
Dec 14, 2006
2872 posts
148 upvotes
Montreal
I have already a TFSA investing CCP style with the assertive model for short term stuff as maybe a downpayment for a new house within 5 years.

I now opened a RRSP account on Questrade, transfering all my mutual funds to this. I am 32 years of age so my investment horizon for RRSP is still 20years+.
In what three ETFs should I invest ?

I was thinking those three :
  • iShares Balanced Growth CorePortfolio ETF
  • WisdomTree U.S. Quality Dividend Growth Variably Hedged ETF
  • iShares Core MSCI All Country World ex-Canada ETF
  • BMO Aggregate Bond Index ETF - 33%


33% Fixed income rest equities.

What do you think ? What would you do if you were in my shoes ?

I'm dropping 10K$ now and will drop approx 10-20k$ everyear until my retirement.
I also have a solid work MF low MER pension plan that matches 8%.
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
Jan 20, 2016
1214 posts
436 upvotes
Burlington, ON
Ahzuz wrote:
Oct 12th, 2017 12:10 pm
I have already a TFSA investing CCP style with the assertive model for short term stuff as maybe a downpayment for a new house within 5 years.

I now opened a RRSP account on Questrade, transfering all my mutual funds to this. I am 32 years of age so my investment horizon for RRSP is still 20years+.
In what three ETFs should I invest ?

I was thinking those three :
  • iShares Balanced Growth CorePortfolio ETF
  • WisdomTree U.S. Quality Dividend Growth Variably Hedged ETF
  • iShares Core MSCI All Country World ex-Canada ETF
  • BMO Aggregate Bond Index ETF - 33%


33% Fixed income rest equities.

What do you think ? What would you do if you were in my shoes ?

I'm dropping 10K$ now and will drop approx 10-20k$ everyear until my retirement.
I also have a solid work MF low MER pension plan that matches 8%.
Why take 1.x% MER funds which over 20y horizon will result in 25%+ losses?
iShares Balanced Growth CorePortfolio ETF
Fees
Management Fee The annual fee payable by the fund to BlackRock Canada for acting as trustee and manager of the fund. 0.25%
Management Expense Ratio (MER) As reported in the fund's most recent Annual Management Report of Fund Performance. MER includes all management fees and GST/HST paid by the fund for the period, and includes any fees paid in respect of the fund's holdings of other ETFs. 0.85%

10%XIC+57%XAW+33%XSB/XBB/XSH and call it a day...
Deal Addict
User avatar
Dec 14, 2006
2872 posts
148 upvotes
Montreal
asa1973 wrote:
Oct 12th, 2017 2:14 pm
Why take 1.x% MER funds which over 20y horizon will result in 25%+ losses?
iShares Balanced Growth CorePortfolio ETF
Fees
Management Fee The annual fee payable by the fund to BlackRock Canada for acting as trustee and manager of the fund. 0.25%
Management Expense Ratio (MER) As reported in the fund's most recent Annual Management Report of Fund Performance. MER includes all management fees and GST/HST paid by the fund for the period, and includes any fees paid in respect of the fund's holdings of other ETFs. 0.85%

10%XIC+57%XAW+33%XSB/XBB/XSH and call it a day...
Didn't see the high iShares high MER.

Thanks for the advice.
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
Member
Jan 18, 2014
341 posts
24 upvotes
Rouyn-Noranda
Ahzuz wrote:
Oct 12th, 2017 4:27 pm
Didn't see the high iShares high MER.

Thanks for the advice.
Given your time horizon is 20+ years and assuming you're willing to deal with volatility, any reason you would put any money at all in bonds?

FYI, this is the Canadian Couch Potato breakdown
http://canadiancouchpotato.com/wp-conte ... s-2016.pdf
Deal Addict
User avatar
Dec 14, 2006
2872 posts
148 upvotes
Montreal
John47 wrote:
Oct 12th, 2017 4:45 pm
Given your time horizon is 20+ years and assuming you're willing to deal with volatility, any reason you would put any money at all in bonds?

FYI, this is the Canadian Couch Potato breakdown
http://canadiancouchpotato.com/wp-conte ... s-2016.pdf
Because everywhere I read it says, as a general rule of thumb, to have your age in % of fixed income in RRSP
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
Jan 20, 2016
1214 posts
436 upvotes
Burlington, ON
Ahzuz wrote:
Oct 12th, 2017 5:29 pm
Because everywhere I read it says, as a general rule of thumb, to have your age in % of fixed income in RRSP
That's mostly very first and very rough assumption of risk tolerance. If'd look on "target funds", most of them till 20 years prior to retirement has 0 or very few (10%) allocation to fixed income. Translated to standard retirement age, it's 45+
For someone in his 30ish, 10 years more in 30% bonds will result in ~50-100% underperformance compared to 100% equities and staying course. Especially with raising rates and bonds returns lower than they used to be last 20 years
[OP]
Deal Addict
Oct 1, 2006
1656 posts
586 upvotes
Montreal
Ahzuz wrote:
Oct 12th, 2017 5:29 pm
Because everywhere I read it says, as a general rule of thumb, to have your age in % of fixed income in RRSP
Yes, this sounds about right. I would not recommend to hold a portfolio only consisting of equities. Not many people will be able to handle the swings of a 100% equity portfolio. The amount of risk you take should be directly related to your need and ability to take risk.
asa1973 wrote:
Oct 13th, 2017 11:11 am
For someone in his 30ish, 10 years more in 30% bonds will result in ~50-100% underperformance compared to 100% equities and staying course. Especially with raising rates and bonds returns lower than they used to be last 20 years
Source? These numbers look made up and do not match historical returns.
Member
Jul 27, 2017
443 posts
103 upvotes
GTA
Germack wrote:
Oct 13th, 2017 11:39 am
Yes, this sounds about right. I would not recommend to hold a portfolio only consisting of equities. Not many people will be able to handle the swings of a 100% equity portfolio. The amount of risk you take should be directly related to your need and ability to take risk.
+1

That is why many folks will go with a balanced fund such as MAW 103, 104, 105 or the TD e-series over going with individual picks 'buy high, sell low' or chasing yield
[OP]
Deal Addict
Oct 1, 2006
1656 posts
586 upvotes
Montreal
aquariaguy wrote:
Oct 10th, 2017 8:37 pm
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?
I would hold ZAG in RRSP. VCN/XAW in TFSA/RRSP or non-registered if needed.
Deal Addict
Jan 20, 2016
1214 posts
436 upvotes
Burlington, ON
Germack wrote:
Oct 13th, 2017 11:39 am
Yes, this sounds about right. I would not recommend to hold a portfolio only consisting of equities. Not many people will be able to handle the swings of a 100% equity portfolio. The amount of risk you take should be directly related to your need and ability to take risk.



Source? These numbers look made up and do not match historical returns.
OK, my bad :) I was not clear stating bonds performance vs stocks could be 50-100% difference, not 30/70 portfolio.

still, someone should expect bonds will perform not so well they used to be
investors to expect a typical 60 percent stocks/40 percent bonds portfolio to deliver two- to- three percentage points less in nominal annual returns than its long-term norm. (Since 1926, such an asset mix has returned better than 8.5 percent annualized.)
That's mean ~5% return for 60/40 portfolio vs (more volatile) 7-9% of 100% stocks. AFAIr stocks used to have 3-5% "premium" over bonds historically due to risk. Like XBB return over 5y ~30% and S&P is 90%.

On accumulation phase imo someone in his 30 COULD afford a more degree of risk (if he COULD ride it) and get BETTER return.

That's why "years in bond" not so 100% universal, many used age-10, age-20 etc.

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