I didn't necessarily mean at this exact moment in time, but if the markets drop significantly in the next 1-2 years.bubak wrote: ↑ VCN is at 34.94. The first time in history that it was ever this high was January 14th, 2020. If you bought it any time before then, you have a gain, not a loss. If your investment horizon is three weeks, equities might not be a good idea.
Same thing for XAW, except November 25th, 2019.
Couch potato investing for the last 18 years - tracking my progress
- Last Updated:
- Mar 16th, 2024 8:36 pm
Tags:
- SCORE+211
- bluevektor
- Deal Expert
- Jul 8, 2007
- 28096 posts
- 1507 upvotes
- Calgary
- Stryker
- Deal Fanatic
- Jul 23, 2007
- 5113 posts
- 4890 upvotes
Personally I never sell just because the markets are dropping. If anything, whenever I have cash to invest I'm a buyer in any market. Over the long term, allows me to slowly build up our assets and income from investments.bluevektor wrote: ↑ I didn't necessarily mean at this exact moment in time, but if the markets drop significantly in the next 1-2 years.
- PlaidPhantom
- Newbie
- Aug 16, 2019
- 13 posts
- 1 upvote
- Timmins, Ontario
How much do you hold in liquid cash/emergency fund?
- Germack [OP]
- Deal Addict
- Oct 1, 2006
- 3244 posts
- 4452 upvotes
- Montreal
Yes, I think this is a good strategy. For me I would take advantage of tax loss harvesting once one of my ETFs has a loss of around $2000. This would save me around ~$500 in taxes. The money from the sell would be immediately reinvested using a similar ETF.bluevektor wrote: ↑ Sorry if this was discussed earlier in the thread, I didn't read through all of the pages. With all of the market turmoil, is anyone planning to do any tax loss harvesting? What cutoff would you suggest before selling? 5% drop, 10% drop? Does anyone have advice for enacting this strategy?
I was thinking of pairing XAW with VXC and VCN with XIC.
- Deepwater
- Deal Addict
- Feb 1, 2012
- 2211 posts
- 3795 upvotes
- Thunder Bay, ON
In almost a decade of couch potato investing I have TLHd only once. After investing for a while your capital gain gets high enough you are unlikely to get into a loss position. TLH is something that works better with individual stocks especially volatile growth stocks.
CPM Blog has a series on it: https://www.canadianportfoliomanagerblo ... s-selling/
Be careful with superficial losses across all your accounts: https://www.canada.ca/en/revenue-agency ... -loss.html
CPM Blog has a series on it: https://www.canadianportfoliomanagerblo ... s-selling/
Be careful with superficial losses across all your accounts: https://www.canada.ca/en/revenue-agency ... -loss.html
When I was young, I was poor. Now, after years of hard work, I'm no longer young.
- Germack [OP]
- Deal Addict
- Oct 1, 2006
- 3244 posts
- 4452 upvotes
- Montreal
We hold around 10-15k in liquid cash/emergency fund.PlaidPhantom wrote: ↑ How much do you hold in liquid cash/emergency fund?
- Stryker
- Deal Fanatic
- Jul 23, 2007
- 5113 posts
- 4890 upvotes
Depends on the person. If you're debt averse as we are, and get hit unexpectedly with a bill near $50,000 in one year, you tend to increase your emergency fund considerably from what it used to be. Besides, it's kind of nice to have the ability to pay cash for a new sub-compact car when necessary. Then start building up the emergency fund again. Been there, done that.PlaidPhantom wrote: ↑ How much do you hold in liquid cash/emergency fund?
- rssdale
- Sr. Member
- Jan 22, 2015
- 662 posts
- 180 upvotes
I'm re-balancing my tfsa and rrsp. Trying to move away from stock picking but I'll be holding on to FTS/AQN/ENB/CNR/TD/SU since I'm up pretty big on all of these (except SU) and can't get myself to sell just yet. '
After selling my smaller positions in my TFSA I'm left with about 36k cash. I'm leaning towards XGRO . Is it best to buy it in a lump sum or should I buy half now and the other half later to see what happens?
For my rrsp should I buy XGRO again to keep things simple? Or go with another pick? I'll have about 10k cash for this one.
After selling my smaller positions in my TFSA I'm left with about 36k cash. I'm leaning towards XGRO . Is it best to buy it in a lump sum or should I buy half now and the other half later to see what happens?
For my rrsp should I buy XGRO again to keep things simple? Or go with another pick? I'll have about 10k cash for this one.
- Stryker
- Deal Fanatic
- Jul 23, 2007
- 5113 posts
- 4890 upvotes
All I know is I bought our all-in-one ETF's just recently........lump sum. Same in all four registered portfolios. Makes investing a little easier for my wife.rssdale wrote: ↑ I'm re-balancing my tfsa and rrsp. Trying to move away from stock picking but I'll be holding on to FTS/AQN/ENB/CNR/TD/SU since I'm up pretty big on all of these (except SU) and can't get myself to sell just yet. '
After selling my smaller positions in my TFSA I'm left with about 36k cash. I'm leaning towards XGRO . Is it best to buy it in a lump sum or should I buy half now and the other half later to see what happens?
For my rrsp should I buy XGRO again to keep things simple? Or go with another pick? I'll have about 10k cash for this one.
- divx
- Deal Expert
- Oct 26, 2003
- 39290 posts
- 6324 upvotes
- Winnipeg
why vgro instead of vfv? seems to do the same but with lower fee.TuxedoBlack wrote: ↑ I'd switch it. XAW in TFSA and XGRO in RRSP. Reason: put bonds in RRSP as you'll eventually have to pay tax when you withdraw the money. So if you absolutely need bonds, then place them in RRSPs.
- TuxedoBlack
- Deal Addict
- Jul 8, 2013
- 4475 posts
- 6898 upvotes
- Somewhere in AB
Because the guy who I quoted and b/w those two ETFs. At the end of the day, choosing b/w these two would have very little end impact as compared to whether you're able and willing to ride out the market.
I keep bonds in my RRSP only. I do so because I want to reduce volatility and have dry powder to buy more equities when the market corrects.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
- divx
- Deal Expert
- Oct 26, 2003
- 39290 posts
- 6324 upvotes
- Winnipeg
People say the flu going to crash the market, when do you expect that to happen?TuxedoBlack wrote: ↑ Because the guy who I quoted and b/w those two ETFs. At the end of the day, choosing b/w these two would have very little end impact as compared to whether you're able and willing to ride out the market.
I keep bonds in my RRSP only. I do so because I want to reduce volatility and have dry powder to buy more equities when the market corrects.
- 095179005
- Member
- Dec 1, 2019
- 212 posts
- 255 upvotes
- bluevektor
- Deal Expert
- Jul 8, 2007
- 28096 posts
- 1507 upvotes
- Calgary
Historically, investing lump sum beats dollar cost averaging two thirds of the time. Also depends on your personality as well. Will you feel okay if you invest it all today and the markets go down by 10% tomorrow, knowing that your time horizon is long? If that makes you too uneasy, then dollar cost averaging will decrease the risk, but you could potentially be leaving some returns on the table. With 10k, I'd probably just lump sum it all. It will save you transaction fees as well.rssdale wrote: ↑ I'm re-balancing my tfsa and rrsp. Trying to move away from stock picking but I'll be holding on to FTS/AQN/ENB/CNR/TD/SU since I'm up pretty big on all of these (except SU) and can't get myself to sell just yet. '
After selling my smaller positions in my TFSA I'm left with about 36k cash. I'm leaning towards XGRO . Is it best to buy it in a lump sum or should I buy half now and the other half later to see what happens?
For my rrsp should I buy XGRO again to keep things simple? Or go with another pick? I'll have about 10k cash for this one.
- shattered
- Newbie
- Sep 25, 2019
- 52 posts
- 20 upvotes
My TFSA is currently maxed out with XAW. At what point would it be worth splitting into 3 funds (XUU/XEF/XEC) to reduce the MER?
- TuxedoBlack
- Deal Addict
- Jul 8, 2013
- 4475 posts
- 6898 upvotes
- Somewhere in AB
LOL. No one knows when the markets will crash.
I'm going with the assumption that I cannot control the market. I will continue to save and keep on buying on a regular basis. If markets crash, so be it.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
- TuxedoBlack
- Deal Addict
- Jul 8, 2013
- 4475 posts
- 6898 upvotes
- Somewhere in AB
Reducing the MER isn't worth it unless your TFSA balance gets to $250K. Just keep it simple and keep on buying XAW.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
- MrW
- Newbie
- Apr 4, 2011
- 37 posts
- 8 upvotes
Hi,
I am currently doing the ZAG/VCN/XAW split that was there before the new models that CCP put out.
Should I be switching it to the VEQT/VAB split ?
I am currently doing the ZAG/VCN/XAW split that was there before the new models that CCP put out.
Should I be switching it to the VEQT/VAB split ?
- divx
- Deal Expert
- Oct 26, 2003
- 39290 posts
- 6324 upvotes
- Winnipeg
seems most stock is going up, what is the outlook for RCI.B? still value at $66?
- 095179005
- Member
- Dec 1, 2019
- 212 posts
- 255 upvotes
If you switch to VEQT/VAB, assuming it's 60/30/10 XAW/VCN/ZAG vs. 90/10 VEQT/VAB, you've increased the MER from 0.16% to 0.23%. If your broker charges for buying, then you'll reduce the amount of charges on purchases from 3 to 2.
https://cdn.canadianportfoliomanagerblo ... -2020.xlsx
When you evaluate your decisions, you should ask why you want to - what are the specific reasons for staying the course, or changing?
https://canadiancouchpotato.com/2011/10 ... g-nothing/
Thread Information
There are currently 3 users viewing this thread. (0 members and 3 guests)