Investing

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

  • Last Updated:
  • Dec 7th, 2019 10:49 pm
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Jr. Member
Mar 19, 2016
198 posts
98 upvotes
canada
ownthesky wrote:
Apr 12th, 2019 1:02 pm
Anybody here using Passiv with Questrade? I've been really enjoying the service so far, not sure if I'll keep the premium account when my trial runs out until my account is large enough to justify the fees. $54 a year (found a promo code) really only makes sense when your portfolio is >$50K.
I tried passiv out. I even chatted with one of the creators. I like the site. But much like you I have a hard time justifying the fee since it's really not that hard to just use my spreadsheet.

He did mention that they will be rolling out some additional features. That could possibly make me a subscriber but who knows.

I believe he said it was possibly ACB tracking, the ability to link multiple accounts into one portfolio for weightings and a few other things.

I think passiv is good for people who kinda want to be diy'ers but only sorts. Like it's more hands on then a robo advisor, but still not totally independent.
Jr. Member
Jul 20, 2009
124 posts
8 upvotes
Montreal
Hi experts,
I have been doing a bit of both passive and active investing last 3 years. Right now I am invested in registered accounts as under.
TD e-series / Couch potato
US Index- : 20%
Canadian Index: 24%
International index: 15%
Canadian bonds 22%

Active:
TD Science & tech: 11%
TD Global entertainment and communication 3%
TD dividend growth: 5%

I can invest around 50K in the next month or so. What's your suggestion? How do I balance it? Do I need to add something else to the mix?

Thanks for your suggestions,

Raw
[OP]
Deal Addict
Oct 1, 2006
1974 posts
1248 upvotes
Montreal
Hi @Raww

I would just invest your 50k all into 1 ETF, VBAL or VGRO, depending on your risk tolerance. I believe there is a lot of value in keeping things simple.
Jr. Member
Jul 20, 2009
124 posts
8 upvotes
Montreal
Thanks Germack and Mark. As I have never bought ETF before, how do I buy it online? I just registered to TD direct investing. Can I buy using that?
Member
Feb 9, 2018
280 posts
196 upvotes
Raww wrote:
May 2nd, 2019 6:06 pm
Thanks Germack and Mark. As I have never bought ETF before, how do I buy it online? I just registered to TD direct investing. Can I buy using that?
Yes, you can. TD direct investing is a brokerage account so you should be able to buy any ETF. Keep in mind that there is a transaction fee of ~10 bucks for buying and selling ETFs on TD direct investing. To keep your costs low, only buy when you have significant cash. Below is a video that talks about how to buy ETFs on TD direct investing. You dont have to buy the ETFs in video but procedure to buy XGRO/XBAL should be same. Other thing to note about ETFs is that they trade like stocks. You can only buy them during market hours i.e. Monday to Friday 9:30 AM to 4:30 PM. You can place orders after market hours but they will only get filled during market hours. Also you cannot buy ETFs in fractions unlike mutual funds. For example: if you have $1000 to invest and ETF you want to buy has a current price of $25.53, then you can only buy: 1000-10 (transaction fee)=$990/25.53=38 shares not 38.77



Other options to consider if you are buying in small amounts and dont want to pay transaction fees are brokerages like Questrade, Virtual Brokers and many others (google them) where there is no transaction fee to buy any ETF, only a transaction fee to sell. Since most investors will usually buy and sell rarely, its a good option especially if you only intend to buy ETFs.
Newbie
Apr 2, 2019
36 posts
16 upvotes
Open a self invest brokerage account with National Bank and you can trade Canadian ETFs for free, both Buy and Sell as long as you purchase in lots of 100. XGRO will cost $2074 to buy a lot of 100 at today's close.
Jr. Member
Jul 20, 2009
124 posts
8 upvotes
Montreal
sunbat wrote:
May 2nd, 2019 6:36 pm
Yes, you can. TD direct investing is a brokerage account so you should be able to buy any ETF. Keep in mind that there is a transaction fee of ~10 bucks for buying and selling ETFs on TD direct investing. To keep your costs low, only buy when you have significant cash. Below is a video that talks about how to buy ETFs on TD direct investing. You dont have to buy the ETFs in video but procedure to buy XGRO/XBAL should be same. Other thing to note about ETFs is that they trade like stocks. You can only buy them during market hours i.e. Monday to Friday 9:30 AM to 4:30 PM. You can place orders after market hours but they will only get filled during market hours. Also you cannot buy ETFs in fractions unlike mutual funds. For example: if you have $1000 to invest and ETF you want to buy has a current price of $25.53, then you can only buy: 1000-10 (transaction fee)=$990/25.53=38 shares not 38.77



Other options to consider if you are buying in small amounts and dont want to pay transaction fees are brokerages like Questrade, Virtual Brokers and many others (google them) where there is no transaction fee to buy any ETF, only a transaction fee to sell. Since most investors will usually buy and sell rarely, its a good option especially if you only intend to buy ETFs.
Thanks, this was very informative.
Sr. Member
User avatar
Mar 27, 2011
723 posts
391 upvotes
Toronto
Hi CCPers,

I've just got a newborn baby girl and we got some gift money that we plan to contribute towards her RESP.

I was thinking of doing a CCP strategy for the first decade or so, and when it comes towards withdrawal time, allocate more towards fixed income (GICs).

I guess the conversion can start at Year 13 onwards, assuming withdrawal starts at 18? Thoughts?

Kind of related to this, awhile ago I came across an article on the methodology as to how one would balance cash, ETFs, and GICs when appproaching (and during) retirement. It was a really good one but unfortunately, I cannot find it anymore. Does anyone have something that would explain this?

Thank you in advance.
Deal Addict
User avatar
Feb 1, 2012
1076 posts
1270 upvotes
Thunder Bay, ON
gekaizer wrote:
May 6th, 2019 4:59 pm
Hi CCPers,

I've just got a newborn baby girl and we got some gift money that we plan to contribute towards her RESP.

I was thinking of doing a CCP strategy for the first decade or so, and when it comes towards withdrawal time, allocate more towards fixed income (GICs).

I guess the conversion can start at Year 13 onwards, assuming withdrawal starts at 18? Thoughts?

Kind of related to this, awhile ago I came across an article on the methodology as to how one would balance cash, ETFs, and GICs when appproaching (and during) retirement. It was a really good one but unfortunately, I cannot find it anymore. Does anyone have something that would explain this?
Yes I think starting to build a GIC ladder in a RESP about 5 years prior to beginning withdrawals makes sense to de-risk the portfolio and insulate it from a possible crash when the money is needed. You might lose some investment return, but that's a fair trade off IMO to know the money will be available when needed. Also consider keeping some in short-term bond fund or HISA to give liquidity and flexibility in timing.

Is this the article you were thinking of? A better way to generate retirement income by Dan Bortolotti in MoneySense.
Invest your time actively and your money passively.
Sr. Member
User avatar
Mar 27, 2011
723 posts
391 upvotes
Toronto
Deepwater wrote:
May 6th, 2019 8:49 pm
Yes I think starting to build a GIC ladder in a RESP about 5 years prior to beginning withdrawals makes sense to de-risk the portfolio and insulate it from a possible crash when the money is needed. You might lose some investment return, but that's a fair trade off IMO to know the money will be available when needed. Also consider keeping some in short-term bond fund or HISA to give liquidity and flexibility in timing.

Is this the article you were thinking of? A better way to generate retirement income by Dan Bortolotti in MoneySense.
@Deepwater, thank you so very much! That is the exact article I was looking for! I knew it was one of Dan's but just couldn't find it. Saving it as a PDF so I won't ever lose it again!

Regarding the GIC ladder, thank you for the feedback. I do realize there might be a loss in return but security takes priority for an RESP.
Deal Addict
Nov 4, 2007
1358 posts
395 upvotes
Toronto
Regarding a GIC ladder within an RESP, I was planning on setting this up this year as my kids are early teens, but with interest rates so low, it is difficult to justify. I'm with Scotia itrade and the highest 5 yr GIC is 2.77% with Hometrust. The highest 5yr AA rated GIC is only 2.5%. I can get 3.35% interest in my HISA Manulife bank account and it's not locked in for 5 years. I am now planning on keeping my RESPs in Equity and investing "other" money into my HISA at 3.35%. That "other" money would have been invested in equities anyways so the overall portfolio will still have the right balance of Fixed Income to Equities.

When it comes time to fund the education, I can always supplement the money from the RESP account with my "other" non registered account if the market goes down. In the meantime, I'm getting a better return overall.
Newbie
Mar 14, 2019
11 posts
Does anyone know about CIBC Canadian Bank Index Autocallable Notes (Index of 5 major banks) ? The returns are at 9% 1 yr, 18% 2 yrs, 27% 3yrs, 36% 4yrs, 45% 5yrs if the Reference Index Return (Index at buying date) is greater than or equal to 0.0%. If Reference Index Return is negative at maturity but equal or greater than -30%, the principle is paid. If it is less than -30%, the principle could be paid at a minimum $1 per Note. The note is sold by CIBC Wood Gundy which is an investment firm bought by CIBC 10 or 20 yrs ago. I just heard this from a bank advisor but feel it's too good to be true.
Deal Addict
User avatar
Apr 12, 2009
1236 posts
240 upvotes
Sweetbird wrote:
May 14th, 2019 9:51 pm
Does anyone know about CIBC Canadian Bank Index Autocallable Notes (Index of 5 major banks) ? The returns are at 9% 1 yr, 18% 2 yrs, 27% 3yrs, 36% 4yrs, 45% 5yrs if the Reference Index Return (Index at buying date) is greater than or equal to 0.0%. If Reference Index Return is negative at maturity but equal or greater than -30%, the principle is paid. If it is less than -30%, the principle could be paid at a minimum $1 per Note. The note is sold by CIBC Wood Gundy which is an investment firm bought by CIBC 10 or 20 yrs ago. I just heard this from a bank advisor but feel it's too good to be true.
Based on my understanding, it's essentially a different branding of Market-Linked GICs (a hybrid between a GIC and a mutual fund). Your money is locked in for a certain period of time (no risk on your principal) and it takes a snapshot of the market price at the beginning of the agreed term. At maturity, it will compare the maturity value with the market price at the beginning of the term to determine your return. If there's a gain, then your return is capped at the percentages mentioned in your post. If there's a loss, you will only get back your principal at maturity.

Personally not a fan of these Market Linked GIC type of investments. If it's short term investing, I'd rather have guaranteed interest through a GIC. If it's long term investing, if there's a downturn, I'll ride it out. Not going to have my money locked up with a potential $0 gain (while losing to inflation).
"Portfolios are like a bar of soap. The more you touch it the smaller it gets" - Preet Banerjee

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