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Couch potato investing for the last 14 years - tracking my progress

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Deal Addict
Jul 23, 2007
3940 posts
1836 upvotes
Bart_ wrote:
...... but I need help with the asset locations to maximize tax efficiency, especially for the LIRA.

You might want to take a look at some of the threads over at Canadian Couch Potato regarding taxation especially in their White Paper.
Bart_ wrote:
eseries month contribution plan (starting now):

Future contribution plan (starting late 2018, transfer from e-series)
Up to you, but if you're planning to stay with TD, I wouldn't be in any big rush to convert to ETF's, especially if your plans are to do monthly contributions. Dan Bortolotti says past the $50,000 mark in a portfolio and Andrew Hallam says it wouldn't be worth the hassle until you get beyond $120,000, so take your pick. The TFSA I have at TD is "all" e-Series funds. In the RRSP, I have a mix of e-Series and ETF's. The e-Series make it easy to mop up distributions, $100+ at a time.
Deal Addict
User avatar
Mar 23, 2011
1584 posts
571 upvotes
I haven't seen this question in skimming the thread.
I have used both the e-series couch potato and the ETF strategy on a small scale.
I have available in a corporation $100-$200K to invest and was wondering should I simply use one method of the CCP or do a 50/50 split of both.
My e-series which I have used longer has performed well. The ETF's that I started this year started off slow and have come back to a good amount so I don't have a positive feel about them yet even though i thrust that it is still a strong investment stratgey.
Is there is any advantage/disadvantage to doing both?
Alex
Deal Addict
Mar 10, 2010
1253 posts
273 upvotes
If you have $100-200k go with the ETF strategy as the cost-difference works in your favour. As long as you're investing in the exact same asset classes as your E-series you'll be getting comparable results, so there should be no problem from that end.
sherman51 wrote: I haven't seen this question in skimming the thread.
I have used both the e-series couch potato and the ETF strategy on a small scale.
I have available in a corporation $100-$200K to invest and was wondering should I simply use one method of the CCP or do a 50/50 split of both.
My e-series which I have used longer has performed well. The ETF's that I started this year started off slow and have come back to a good amount so I don't have a positive feel about them yet even though i thrust that it is still a strong investment stratgey.
Is there is any advantage/disadvantage to doing both?
Newbie
Aug 28, 2003
2 posts
Mississauga
Sorry for the newbie question.

So people are spreading ratios across their different types of accounts? TFSA, RESP, RRSP, LIRA?

Currently, I have most of my funds in cash as I've been wanting to do something like the CCP. Do I buy everything one day or spread it apart?

I have like:

100k RRSP
50k TFSA
35K RESP

Wife has:
30k RRSP
18k spousal RRSP
50K TFSA

Should we buy TD e-series? or ETFs? Also, want to start contributing monthly again.

Please advise.

Thanks.
Deal Addict
Sep 13, 2003
1251 posts
101 upvotes
pb88 wrote: Sorry for the newbie question.

So people are spreading ratios across their different types of accounts? TFSA, RESP, RRSP, LIRA?

Currently, I have most of my funds in cash as I've been wanting to do something like the CCP. Do I buy everything one day or spread it apart?

I have like:

100k RRSP
50k TFSA
35K RESP

Wife has:
30k RRSP
18k spousal RRSP
50K TFSA

Should we buy TD e-series? or ETFs? Also, want to start contributing monthly again.

Please advise.

Thanks.
You should go with the e-series if you're contributing monthly because there's no commission fees.
Jr. Member
Mar 30, 2006
185 posts
156 upvotes
Edmonton
Would you guys say this is the order of equities that you should hold in your RRSP.

1. Bonds
2. US ETF - Emerging market ETF (Because the CDN equivalent ETF has higher MER)
3. US ETF- International ETF (Because the CDN equivalent ETF has higher MER)


Would you guys say this is the order of equities that you should hold in your TFSA.

1. CDN International Market ETF
2. CDN Emerging Market ETF
3. CDN - US Market ETF

Would you guys say this is the order of equities that you should hold in your Non Reg?

1. CDN - Canadian market etf
2. CDN- US Market ETF

So here is the overall priorities

Bonds belong in your RRSP account in CDN dollars
Emerging market equities should be help in your RRSP account using an US ETF. After that, hold it in your TFSA, then your Non Reg
International market equities should be in your RRSP account using an US ETF. After that, hold it in your TFSA, then your Non Reg
US equities can be held as a canadian ETF and should be in your TFSA or Non Reg if you don't have room in your RRSP.
Canadian equities should be in your Non Reg
Member
User avatar
Oct 21, 2009
292 posts
86 upvotes
pb88 wrote: Sorry for the newbie question.

So people are spreading ratios across their different types of accounts? TFSA, RESP, RRSP, LIRA?

Currently, I have most of my funds in cash as I've been wanting to do something like the CCP. Do I buy everything one day or spread it apart?

I have like:

100k RRSP
50k TFSA
35K RESP

Wife has:
30k RRSP
18k spousal RRSP
50K TFSA

Should we buy TD e-series? or ETFs? Also, want to start contributing monthly again.

Please advise.

Thanks.
From what I have read, it is better most of the time, to buy it all at once. That's what I'm doing too.

My current funds are going to ETF's.
My monthly contributions are going to e-series and once they are big enough (probably around 10k in each fund), I will sell the e-series and purchase ETF. These ETF purchases will be used to re-balance my portfolio to my target allocation.

Rinse and repeat.
Deal Addict
Jul 23, 2007
3940 posts
1836 upvotes
When it comes to taxes I'm sort off like John Heinzl where I take the easy way. In a perfect world I would keep all my U.S. and international equities in an RRSP only, but alas I need more room than what's available in there, so I also keep U.S. and international equities in a TFSA as well, even though I know I'm going to get whacked for tax. In the non-registered I only invest in Canadian equities. Less headache for me when it comes to tax time and that's the way I like it.
Deal Addict
User avatar
Mar 23, 2011
1584 posts
571 upvotes
If I am investing in ETF's in a Non-Registered account, should I stick with the suggested CCP model portfolio of ZAG, VCN and XAW or are the better/other ETF's I should look at to minimize the taxes to be paid. The money would be invested in a HoldCo.
Alex
Member
Nov 25, 2007
260 posts
67 upvotes
Toronto
Thanks everyone in this thread. It's been very informative! I'm a newbie on investment, and I'm serioiusly considering the CCP portfolio, but I have a quick question:

I have a $330K mortgage (locked rate at 2.11% until June 2018), and I have $350K cash (currently sitting in a saving account with 2.5% interest rate). Should I pay off the $330K mortgage first, or should I just put the entire $350K saving into the CCP portfolio? My friend told me to pay off the mortgage first before any investment, but my thinking is, if I can easily get more than 2.11% return from my CCP investment, why would I bother paying off my mortgage in a hurry?

What do you think?

Thanks everyone!
Sr. Member
User avatar
Mar 11, 2011
764 posts
262 upvotes
Toronto
Pay off the mortgage, if only for the peace of mind. After tax, you are earning nowhere near 2.5%, so the present setup is costing you. Also, after 9 years without a serious correction, the market is way overvalued and due for a correction.
Deal Addict
User avatar
Aug 1, 2007
1404 posts
202 upvotes
raptorsfans wrote: Thanks everyone in this thread. It's been very informative! I'm a newbie on investment, and I'm serioiusly considering the CCP portfolio, but I have a quick question:

I have a $330K mortgage (locked rate at 2.11% until June 2018), and I have $350K cash (currently sitting in a saving account with 2.5% interest rate). Should I pay off the $330K mortgage first, or should I just put the entire $350K saving into the CCP portfolio? My friend told me to pay off the mortgage first before any investment, but my thinking is, if I can easily get more than 2.11% return from my CCP investment, why would I bother paying off my mortgage in a hurry?

What do you think?

Thanks everyone!
I think that's the right way to think about it. Long-term I think you could expect to get much more than 2.11%. You should look at your time horizon and any future cash requirements as well. If the idea of having that mortgage is a huge burden for you, the emotional aspect of becoming mortgage-free is also something to consider.
Deal Addict
Jan 20, 2016
2028 posts
1007 upvotes
Houston, TX
46jimbo wrote: Pay off the mortgage, if only for the peace of mind. After tax, you are earning nowhere near 2.5%, so the present setup is costing you. Also, after 9 years without a serious correction, the market is way overvalued and due for a correction.
Well, raptorsfans asked about CCP vs mortgage. Mortgage vs GIS/HSA sure looks better. as 2.5% after tax is really zero game here. But with 6-8% average return from CCP, over next 10y it would be BIG difference in favor of CCP.
Another way to skin a cat (sorry, no personal avatar offense ;) ) could be pay a mortgage, take a HELOC and do a Smith maneuver (assuming most of 350k would go to taxable account)
after 9 years without a serious correction

-19% drop in 2016 didn't count as correction, eh?
Make the face great again
Deal Addict
Jun 3, 2009
4776 posts
872 upvotes
Montreal
46jimbo wrote: Pay off the mortgage, if only for the peace of mind. After tax, you are earning nowhere near 2.5%, so the present setup is costing you. Also, after 9 years without a serious correction, the market is way overvalued and due for a correction.
Interest earned is taxed at 50% so I would also pay off the mortgage too unless you are a seasoned investor/trader.
Member
Nov 25, 2007
260 posts
67 upvotes
Toronto
Thanks for the inputs, everyone! I really appreciate it!

I totally forgot about the tax from the investment :). So I guess my real question is: is it realistic to expect a net return (ie, after 50% tax) of more than, say, 2.5%, from a conservative CCP portfolio?

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