Investing

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

  • Last Updated:
  • Jan 21st, 2019 4:30 pm
Tags:
None
Newbie
Dec 22, 2018
4 posts
Hello, can someone give me some advices on evaluation metric to select the right ETF? (such as shap ratio...etc) Thanks.
Newbie
Feb 1, 2005
89 posts
22 upvotes
Richmond
I have been using the Couch Potato strategy for my RRSP for 6-7 years. It fits well with my lack of time, motivation and skill to research and invest in individual stocks.

Returns (XIRR) as of December 31, 2018
1yr -2.0%
2 yrs 4.33%
3 yrs 4.89%
5 yrs 7.10%

I have been using Mawer Balanced for TFSA as it has a more modest value and it has roughly tracked CP returns. A good choice for people that only want one fund to deal with. I will consider switching to VGRO when larger.
Member
Oct 27, 2014
438 posts
352 upvotes
Toronto, ON
Germack wrote:
Jan 2nd, 2019 8:22 pm
Vanguard one fund solutions (VCNS, VBAL or VGRO) is all you need.

For more information see here:
https://canadiancouchpotato.com/2018/02 ... -solution/
The problem i have with one fund solution is that, if i were to liquidate some holdings for emergencies, I'd normally just liquidate some of my bond holdings, whereas for the one fund solution, I'd have no choice but to liquidate stocks and bonds at the same time
Sr. Member
Sep 29, 2007
502 posts
84 upvotes
Anyone expecting a positive return on CCP this year is delusional. Your beloved XAW will get hammered with rising CAD$ (fairly obvious why oil will rip higher in the next 3-9 months). US markets still very over-valued and bonds will decline with 1-3 rate hikes in 2019.
Deal Addict
User avatar
Aug 4, 2014
1645 posts
750 upvotes
Toronto, ON
retireat50 wrote:
Jan 3rd, 2019 2:39 pm
Anyone expecting a positive return on CCP this year is delusional. Your beloved XAW will get hammered with rising CAD$ (fairly obvious why oil will rip higher in the next 3-9 months). US markets still very over-valued and bonds will decline with 1-3 rate hikes in 2019.
As someone who's 50 and is thinking to retire (or downshift if I can find a decent part-time job) "soon-ish", with same age husband who wants to keep working till his 60-ish, with both RRSPs and TFSAs to be maxed out before spring, so we'll have to start buying XAW in the non-reg account, and maybe increase our GICs & bonds allocation from 20 to 25-30% next year, and, if everything goes as planned, will save & invest at least as much as we have so far in the next ~7 years - I sincerely hope you're right :D
Deal Addict
Jul 15, 2009
1334 posts
447 upvotes
muppetslayer wrote:
Jan 3rd, 2019 11:07 am
The problem i have with one fund solution is that, if i were to liquidate some holdings for emergencies, I'd normally just liquidate some of my bond holdings, whereas for the one fund solution, I'd have no choice but to liquidate stocks and bonds at the same time
Why would you want to change to a more aggressive asset allocation after an emergency?
Sr. Member
Nov 17, 2014
774 posts
229 upvotes
alexcalvado wrote:
Jan 3rd, 2019 6:05 pm
XAW mouhahhaha
XSP is the way to go and has been since september
It appears that, ignoring dividends, the price of your favorite ETF, XSP, has dropped more than XAW since September 2018.

TSE:XSP
August 31, 2018 - $32.78
Jan 3, 2019 - $27.31
Price drops $5.47, or 17%

TSE: XAW
August 31, 2018 - $26.43
Jan 3, 2019 - $23.07
Price drops $3.36, or 13%
Deal Addict
User avatar
Aug 4, 2014
1645 posts
750 upvotes
Toronto, ON
Beefeater wrote:
Jan 3rd, 2019 8:00 pm
It appears that, ignoring dividends, the price of your favorite ETF, XSP, has dropped more than XAW since September 2018.
He’s sitting with mostly cash since September, and uses XSP for swing trading while the markets are on the way down, so “beating the index” more in the unhedged XSP (which is S&P 500 only, while XAW also has US mid and small caps, developed countries and emerging markets companies in it) I.e. comparing completely different products - and strategies :)
Member
Feb 5, 2017
485 posts
255 upvotes
freilona wrote:
Jan 3rd, 2019 10:10 pm
He’s sitting with mostly cash since September, and uses XSP for swing trading while the markets are on the way down, so “beating the index” more in the unhedged XSP (which is S&P 500 only, while XAW also has US mid and small caps, developed countries and emerging markets companies in it) I.e. comparing completely different products - and strategies :)
couldnt have said it better myself..
sold XAW back in june at 26.60$ (you do not want to know how much tax I will have to pay on that transaction but let's just say that it was well worth it in retrospect) and VCN as well.

if you want to trade (not invest in) the SP500, my suggestion is to go with XSP and not XUS for now
Newbie
Feb 8, 2018
94 posts
29 upvotes
Germack wrote: Hi HyperTech,

This does not include reinvested dividends. This is why your and my numbers are different.

Total S&P 500 Return: 2711.511%
Total S&P 500 Return (Dividends Reinvested): 9217.834%

Link:
https://dqydj.com/sp-500-return-calculator/

Cheers
And then we need to add inflation, 2018 US dollar is 4.4 times cheaper than 1976 dollar..
Means 5670$ in 2018 for 1000$ invested in 1976
Newbie
Feb 8, 2018
94 posts
29 upvotes
sh8wh4sg wrote: Hi Folks,
I'm a immigrant, almost 4 year's now. Earns around $105K, wife works only part- time and brings around $25 K. I'm 32 year's old, wife is 30 and my elder son is turning 5, middle one is turning 3 and we are expecting our third one soon. We own a house (mortgage) and 2 cars (no finance for cars)
Recently opened our first RRSP/RESP accounts with TD direct investing , Can you guys share your views on where to invest. I have almost $50K RRSP contribution room !
Thanks in advance ...
1) I would not pay off the mortgage as much as possible because the money is still cheap (interest rate is low)
2) obviously, use RESP as much as possible to fully utilize help from the government
3) There is no universal receipt about RRSP. For you probably is better to save the room till your wife gets full time job. You need to learn more about RRSP and how it suits your family best
Deal Addict
Jul 15, 2009
1334 posts
447 upvotes
amal1595 wrote:
Jan 4th, 2019 1:43 am
And then we need to add inflation, 2018 US dollar is 4.4 times cheaper than 1976 dollar..
Means 5670$ in 2018 for 1000$ invested in 1976
What inputs are you using to get these results?

When I input January 1976 to December 2018 adjusted for inflation, it says a 1679% gain so $1k would become $17.8k.

When not adjusted for inflation, it says 7944%, so how did Germack get 9217%?

Top

Thread Information

There are currently 2 users viewing this thread. (1 member and 1 guest)

bubak