Investing

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

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  • Oct 1st, 2019 10:01 am
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Member
Jun 10, 2013
497 posts
217 upvotes
Shaun80 wrote:
Dec 24th, 2018 4:32 pm
Alex I still don't get how you made big money since Sept . You avoided losses by being in cash but how was the money made since Sept if you werent buying put options ? Microtrading made you big money ?
There are short/inverse ETFs out there to make money off of: XIU/SH (USD), some of them can be levered 2-3x. Not viable long-term, but could make short-term money gambling off them.
Member
Jun 10, 2013
497 posts
217 upvotes
Ginger19 wrote:
Dec 23rd, 2018 11:00 pm
I am new. I have LIRA abot 50K with TD DI. I letted it sit there as cash with a bit of interest earning since I was busy with school. Now I just finish my degree and ready to make my investment selection. I will construct my profile shortly. However, if you do not mind, should I be cautious about anything within this coming week?
Cash is a position, a very safe one (in the short-term, insane in the long-term). I can't give your advice nor can anyone else really, I would take whatever you read on a forum with a grain of salt. I can tell you what I'm doing with my own money: I'm sitting on cash piles similar to yours in a wait and see approach. But I've been wrong many times before and I'm engaging in bad practice by timing the markets but it is a decision I made based on my knowledge and experience (and I may learn yet again if I'm wrong). Best thing to do is educate yourself on money, probably the most important thing you can do, there are good books on general index investing:

Basic general: Millionaire Teacher by Andrew Hallam

Slightly more sophisticated but still mass market:
Random Walk Down Wall Street by Burton Malkiel
Four Pillars of Investing/Intelligent Asset Allocator - William Bernstein (any of his investing books really)
works by Larry Swedroe

Canadian Couch Potato Blog or PWL Capital

Podcasts: Dough Roller (indexer), Money Guy (indexers), Meb Faber Show (hedge fund-er) - also has some interesting books written, Canadian Couch Potato (indexer), Paul Merriman (mainly indexer who partially times)

I would read up before doing anything, so you understand what to do and why...
Deal Addict
Jan 18, 2014
1155 posts
315 upvotes
Rouyn-Noranda
Not sure if the link I posted will lead to the right post, depending on posts per page parameters. Here is the post in quoted form:
Germack wrote:
Dec 30th, 2017 2:38 pm
Year End Update

Networth 31.12.2016: $1,039,083 (Family NW: $1,666,701)
Networth 30.12.2017: $1,220,831 (Family NW: $2,035,393)

Increase: $181,748 (Family: $368,692)

Rate of return:13.3%

Networth graph:

NW 30DEC2017.png


Savings vs. Investment Gains:

SAvings vs Investment Gains.png
[OP]
Deal Addict
Oct 1, 2006
1953 posts
1205 upvotes
Montreal
Year End Update

Networth 30.12.2017: $1,220,831 (Family NW: $2,035,393)
Networth 31.12.2018: $1,237,361 (Family NW: $2,103,686)

Increase: $16,530 (Family: $68,292)

Rate of return (investments): -3.4%

Networth graph:
NW 31DEC2018.png

Savings vs. Investment Gains:
Savings vs Investment Gains 31122018.png
Sr. Member
Nov 17, 2014
799 posts
250 upvotes
No bad for you in 2018, considering that you did better than the indices:

- Toronto stock exchange (TSX) - 12% loss

- S&P500 - 6.24% loss

- Nasdaq composite - 3.88% loss

My portfolio had a 2.2% loss in 2018.
[OP]
Deal Addict
Oct 1, 2006
1953 posts
1205 upvotes
Montreal
Beefeater wrote:
Jan 1st, 2019 10:49 am
No bad for you in 2018, considering that you did better than the indices:

- Toronto stock exchange (TSX) - 12% loss

- S&P500 - 6.24% loss

- Nasdaq composite - 3.88% loss

My portfolio had a 2.2% loss in 2018.
I am an index investor therefore I cannot do better than the indices ;).

Your numbers above do not include dividends and thanks to the decline of the CAD my US equities returns are actually positive for the last year (S&P500 TR Index (CAD): +4.16%).
Deal Addict
User avatar
May 11, 2014
3225 posts
2769 upvotes
Iqaluit, NU
Germack wrote:
Jan 1st, 2019 10:59 am
I am an index investor therefore I cannot do better than the indices ;).

Your numbers above do not include dividends and thanks to the decline of the CAD my US equities returns are actually positive for the last year (S&P500 TR Index (CAD): +4.16%).
So much for the recent comments saying index investing is dumb money ;)

Congrats on 16 years of disciplined saving and continuing to post your progress!
Support your local Credit Union!

Sask Pension Plan Upto $6200/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222
Deal Addict
Nov 10, 2018
2439 posts
2403 upvotes
Germack wrote:
Jan 1st, 2019 10:59 am
Your numbers above do not include dividends and thanks to the decline of the CAD my US equities returns are actually positive for the last year (S&P500 TR Index (CAD): +4.16%).
This is in line with several mutual funds for CY2018 for US equities.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Deal Addict
Jun 27, 2007
4632 posts
1339 upvotes
sh8wh4sg wrote:
Dec 20th, 2018 10:44 am
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 ...
I think you want to invest as soon as possible with the money you don’t need for 10+ years.
Reasons are simple: coumpounding interest and time in the market

Contribute to RSP, get tax refund and throw it back into RSP. Rinse and repeat.

Mortgage can wait as long as your free cash flow decent.

Invest into ETFs inside of registered accounts, like RSP/RESP/TFSA
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
Deal Addict
User avatar
Aug 4, 2014
1810 posts
991 upvotes
Toronto, ON
Beefeater wrote:
Jan 1st, 2019 10:49 am
My portfolio had a 2.2% loss in 2018.
Same here :) Thanks to declining CAD and selling covered calls in November - slightly better than underlying indices.. :)

Trailing portfolio return (time-weighted return, comparable return)

Portfolio return as of 31/12/2018
1 month -3.9%
3 months -6.5%
6 months -5.2%
YTD -2.2%
1 year -2.2%
3 years* 6.9%
Newbie
Dec 22, 2018
11 posts
Germack wrote:
Jan 1st, 2019 10:59 am
I am an index investor therefore I cannot do better than the indices ;).

Your numbers above do not include dividends and thanks to the decline of the CAD my US equities returns are actually positive for the last year (S&P500 TR Index (CAD): +4.16%).
Happy New Year. Thanks for your posting,Germack.
Could you please explain what you mean by declining CAD? I understand that US equity return is positive for you.
Newbie
Dec 31, 2018
27 posts
23 upvotes
When you buy a mutual fund/etf consisting of US companies, you also have to take the currency conversion rate into consideration (if the fund is not currency-hedged). For instance, if the fund goes down 5% in USD but the Canadian dollar falls by 7% compared to the USD, then your fund will have risen by 2% in CAD.

Here you can see that a simple S/P 500 US ETF was up 2.6% in CAD.
https://www.blackrock.com/ca/individual ... -index-etf

The opposite was the case in 2017. CAD went up by like 7% compared to the USD which is why the performance of a S/P 500 fund was 13% in CAD, compared to like 20% in USD.

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