Investing

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

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  • Jul 26th, 2017 12:00 am
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Newbie
Nov 7, 2016
36 posts
3 upvotes
thank you for replying

i want to ask ..

currently i have 25.96 and 21.68 in "Cash" sitting in my tfsa and rrsp accounts, i bought some etfs from vanguard that my sister recommended .. and then i have these two small amounts of cash leftover.. this might be a weird question, but because i feel that the etfs grow slowly.. and anything sitting in cash is not ideal (kinda like, what's the point of it if its not in some etf format), do you know of any good etfs that can be purchased for the prices above?

.. i guess i would be wanting to purchase 1 of each lol.. its just to avoid anything sitting in cash, even though its "just" twenty something dollars you know ..





quote=gekaizer post_id=27475679 time=1487195096 user_id=410077]
Sorry to hear about your situation, I do hope it improves.

I think putting in the life savings to ETFs is quite risky since no one can predict what will happen in the market. This 25k is your emergency fund as well right? What happens if the market suddenly crashes and your ETFs drop by 40%.

As well, what happens if you need access to the 25k due to circumstances (i.e. you need to go on EI for extended period than originally anticipated due to prolonged illness, or tough job search)?

You will be in quite a bind.

I don't believe you can live off the ETF dividends alone, the common index ETFs don't really go above 5% and assuming a reasonable annual yield of 10% of your ETF portfolio, you'd only be getting 2.5k; which would support you for almost 2 months.

I assume you are trying to use this strategy for the short term, until you get back into routine, but I believe there are numerous financial risks involved.
[/quote]
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Jan 19, 2005
3273 posts
413 upvotes
nutcrackergirl wrote:
Feb 21st, 2017 1:28 pm
currently i have 25.96 and 21.68 in "Cash" sitting in my tfsa and rrsp accounts, i bought some etfs from vanguard that my sister recommended .. and then i have these two small amounts of cash leftover.. this might be a weird question, but because i feel that the etfs grow slowly.. and anything sitting in cash is not ideal (kinda like, what's the point of it if its not in some etf format), do you know of any good etfs that can be purchased for the prices above?

.. i guess i would be wanting to purchase 1 of each lol.. its just to avoid anything sitting in cash, even though its "just" twenty something dollars you know ..
I have a MF in nearly all my accounts which allows a low amount for subsequent purchases. It use it to clear out any excess balances that were not enough to DRIP a whole share. In my case, I use a Beutel Goodman fund (Small Cap; BTG799) which has a min. initial purchase price of $500, and $100 subsequent. Whenever I reach >= $100 in cash balance in an account, I clear it with a purchase of the fund. If I don't have enough, I just wait a few months for the next partial dividend payout.
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Feb 1, 2012
582 posts
458 upvotes
TORONTO
nutcrackergirl wrote:
Feb 21st, 2017 1:28 pm
currently i have 25.96 and 21.68 in "Cash" sitting in my tfsa and rrsp accounts, i bought some etfs from vanguard that my sister recommended .. and then i have these two small amounts of cash leftover.. this might be a weird question, but because i feel that the etfs grow slowly.. and anything sitting in cash is not ideal (kinda like, what's the point of it if its not in some etf format), do you know of any good etfs that can be purchased for the prices above?
I would not say ETFs grow slowly. They closely follow their index. If you have a balanced ETF portfolio it will grow with the market and give amazing compounding over the long term.

That's one of the drawbacks of ETFs that can only be purchased in full shares, compared to mutual funds that can be purchased in partial units so you can invest down to $0.01.

I use a low cost mutual fund to keep cash and distributions invested. In my case I use TD Balanced Index fund (TDB965) that has an initial minimum purchase of $100 and a minimum subsequent investment of $100. It is a conservative Canadian focused balanced fund and is not an eSeries fund so should be available at most or all brokerages. Whenever my cash builds up from distributions I invest in that fund.
https://www.tdassetmanagement.com/fundD ... 99&lang=en

(I just rebalanced so I currently have 0.01% cash) Smiling Face With Sunglasses
Invest your time actively and your money passively.
Member
Dec 27, 2005
286 posts
23 upvotes
Toronto, ON
Hello Germack and all other investors.

I've been following this thread for the past few weeks as I think i'm ready to make the move. I would appreciate if you guys can put me in the right direction here.

I'm 31, married and have a son. We are at a point in our life where we think we should put aside our monthly savings around 2.5-3k/month into investing.

We've no experience in investing . Might be a little late in the game of investing than the OP. Can someone help with the below questions

1. The amount listed above would be our net savings after all our expenses . Would you recommend keeping a safety net in our accounts every month ? or just liquidate our holdings if the need arises
2. Since we are starting out, would you recommend ETFs or mutual funds?
3. Tangerine vs TD E series Funds . I noticed the MER is high on the Tangerine funds. Assuming there are no trading fees for both ? is one riskier than other
4. Sort of related to #3 , would it make sense to make LUMP SUM once every 6 months or every month . Would really depend if we’ve to pay fees every month

Thanks All!

Germack wrote:
Jun 6th, 2014 4:19 pm
Hi RFD,

After reading several articles, forums, blogs and academic studies, I came to the conclusion that the best way to invest my money is in a low cost diversified portfolio.

Sr. Member
Jan 27, 2015
827 posts
277 upvotes
Edmonton, AB
ukrainiandude wrote:
Feb 17th, 2017 11:22 pm
Have you guys already contemplated a new strategy for investment in non reg accounts, since inclusion rate increase is regarded as highly probable (a new budget deficit is forecast to be over $25 billion, followed by one of at least $28 billion.).
Basically if 6% annually is a possible return in CCP portfolio after new taxes it will be reduced by almost a third to 4% before inflation. ( easier in the states where all amount of capital gains is taxed at 10-15% rate that's twice less compared to Canadian savers).
It is prudent to select the securities that will minimize necessities of future selling.
VTI probably one, must have.
Any ideas?
I'm keeping my eyes open for any tax changes, and that's why all of my non-registered investments is in just one ETF: HXS.

HXS pays out no dividend, and I won't be selling it until I retire or when Conservatives are back in power and they reduce the inclusion rate (assuming the inclusion rate goes up in the first place).
Sr. Member
Jan 27, 2015
827 posts
277 upvotes
Edmonton, AB
paf wrote:
Feb 22nd, 2017 9:39 am
Hello Germack and all other investors.

I've been following this thread for the past few weeks as I think i'm ready to make the move. I would appreciate if you guys can put me in the right direction here.

I'm 31, married and have a son. We are at a point in our life where we think we should put aside our monthly savings around 2.5-3k/month into investing.

We've no experience in investing . Might be a little late in the game of investing than the OP. Can someone help with the below questions

1. The amount listed above would be our net savings after all our expenses . Would you recommend keeping a safety net in our accounts every month ? or just liquidate our holdings if the need arises
2. Since we are starting out, would you recommend ETFs or mutual funds?
3. Tangerine vs TD E series Funds . I noticed the MER is high on the Tangerine funds. Assuming there are no trading fees for both ? is one riskier than other
4. Sort of related to #3 , would it make sense to make LUMP SUM once every 6 months or every month . Would really depend if we’ve to pay fees every month

Thanks All!
1) Do not invest anything in the stocks/bonds market if you need the money in the next 5 years. Given that you're new, I recommend having some savings as a rainy day fund.
2) Either ETFs or index mutual funds (low-cost) would work
3) Tangerine is the easiest. TD e-series is a bit more involved, but it's free to buy/sell and your money is fully invested all the time.
4) I buy every month using a combination of TD e-series and ETFs. I try to save as much as possible every month and I like my money to be invested at all times.

My TFSA is filled with just one ETF: XAW
My RRSP has TD e-series. (I was planning on moving to 3 ETFs but decided against it, for now).
My non-reg is HXS.

Good luck.
Member
Dec 27, 2005
286 posts
23 upvotes
Toronto, ON
Thank you.

is there a calculator speedsheet to decide if RRSP is better or TFSA to Invest in
FinancialFreedom wrote:
Feb 22nd, 2017 5:47 pm
1) Do not invest anything in the stocks/bonds market if you need the money in the next 5 years. Given that you're new, I recommend having some savings as a rainy day fund.
2) Either ETFs or index mutual funds (low-cost) would work
3) Tangerine is the easiest. TD e-series is a bit more involved, but it's free to buy/sell and your money is fully invested all the time.
4) I buy every month using a combination of TD e-series and ETFs. I try to save as much as possible every month and I like my money to be invested at all times.

My TFSA is filled with just one ETF: XAW
My RRSP has TD e-series. (I was planning on moving to 3 ETFs but decided against it, for now).
My non-reg is HXS.

Good luck.
Member
Sep 25, 2003
315 posts
17 upvotes
Toronto
I'm new to invest and any help will be appreciated. I have about 30k and plan to open a TFSA. I don't need the money in the next 10 yrs or so. I'm thinking Tangerine Equity Growth Portfolio, is it a good choice?
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User avatar
Sep 19, 2004
19659 posts
2884 upvotes
Waterloo
ultra wrote:
Feb 25th, 2017 6:34 pm
I'm new to invest and any help will be appreciated. I have about 30k and plan to open a TFSA. I don't need the money in the next 10 yrs or so. I'm thinking Tangerine Equity Growth Portfolio, is it a good choice?
It's fine
We can't say good or bad either way
TD e-series may be a better choice
anyway, read up http://canadiancouchpotato.com/model-portfolios/
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Deal Addict
Feb 4, 2015
2281 posts
370 upvotes
Germack wrote:
Feb 26th, 2017 12:24 pm
Anyone here from Montreal and interested in setting up a meetup group?

For more info:
https://www.reddit.com/r/montreal/comme ... /?sort=new
Great way to learn... let us know how it goes and maybe eventually can do tele conference with some of us folks in GTA!!

Gonna actually be in Mtl in couple of weeks however busy attending wedding.
Member
Sep 25, 2003
315 posts
17 upvotes
Toronto
Looks like people like xaw here, is there a us fund equivalent etf? I have some usd in rrsp questrade so I don't have to convert
[OP]
Deal Addict
Oct 1, 2006
1594 posts
491 upvotes
Montreal
ultra wrote:
Feb 27th, 2017 7:50 am
Looks like people like xaw here, is there a us fund equivalent etf? I have some usd in rrsp questrade so I don't have to convert
Vanguard Total World Stock ETF (VT) should work for you then.
Deal Addict
Feb 21, 2004
1174 posts
72 upvotes
Montreal
@Germack With the Stock markets at all time highs in US / CAD, the temptation to time the market is very strong, e.g. I'm about to do my annual CCP recalibration and one one want to wait for a correction before investing. Do you always stick to the same calendar plan regardless of what you see on the markets?
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