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

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  • May 20th, 2018 2:42 pm
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Dec 14, 2006
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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
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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
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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
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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
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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.
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Jul 27, 2017
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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]
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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.
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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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Germack wrote:
Oct 13th, 2017 12:07 pm
I would hold ZAG in RRSP. VCN/XAW in TFSA/RRSP or non-registered if needed.
Thanks for the reply. What's the reasoning behind that? Just trying to understand investing.
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Jul 27, 2017
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FWIW, I came across a Globe & Mail piece by Rob Carrick

https://beta.theglobeandmail.com/globe- ... ndmail.com&


The ETF strategy

"Here's the mix of ETFs Mr. Bender and Mr. Barolotti suggest can lead you to $1-million:

25 per cent Vanguard Canadian Aggregate Bond Index ETF (VAB)
25 per cent Vanguard FTSE Canada All Cap Index ETF (VCN)
50 per cent iShares Core MSCI All Country World ex Canada Index ETF (XAW)"
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porticoman wrote:
Oct 13th, 2017 3:16 pm
FWIW, I came across a Globe & Mail piece by Rob Carrick

https://beta.theglobeandmail.com/globe- ... ndmail.com&


The ETF strategy

"Here's the mix of ETFs Mr. Bender and Mr. Barolotti suggest can lead you to $1-million:

25 per cent Vanguard Canadian Aggregate Bond Index ETF (VAB)
25 per cent Vanguard FTSE Canada All Cap Index ETF (VCN)
50 per cent iShares Core MSCI All Country World ex Canada Index ETF (XAW)"
+1

Couple maxing TFSA each year (11k) will hit 1M in ~30 years assuming 6.5% return (* based on PAST 20 years performance)
That's $100 per person weekly saving rate...

Saving rate adjusted to inflation (and TFSA room increase) probably will shorter it to 20-25 years (as any other additional savings :) )
Make the Trudeau drama teacher again!
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aquariaguy wrote:
Oct 13th, 2017 12:36 pm
Thanks for the reply. What's the reasoning behind that? Just trying to understand investing.
It is likely that the rate of returns for VCN/XAW will be higher than ZAG. Investments gains in a TFSA are tax free. By putting VCN/XAW in TFSA and ZAG in your RRSP the tax savings will likely be higher.
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I'll go 10% ZAG, 30% VCN and 60% XAW then for RRSP with 20+ years.

Thank you.
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
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Feb 5, 2017
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it all depends on your portfolio size now and in the future.

in my particular case, my TFSA and RRSP only represent around 30% of all my portfolio and this % will always get smaller with time (I can put 34K of new money in TFSA+RRSP each year while I add near 250K in non registered yearly).

so in my case, my RRSP is almost only bonds while my TFSA is only international equity

while my non registered account is a healthy mix of preferred, reits, equity ( canadian, international and emerging ) and some ZDB

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