Investing

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

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  • May 29th, 2020 11:27 am
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Newbie
Dec 22, 2018
19 posts
3 upvotes
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
91 posts
24 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.
Sr. Member
Oct 27, 2014
525 posts
884 upvotes
Toronto, ON
Germack wrote: 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
600 posts
120 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
2391 posts
1911 upvotes
Toronto, ON
retireat50 wrote: 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
1782 posts
883 upvotes
muppetslayer wrote: 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
User avatar
Feb 5, 2017
807 posts
595 upvotes
XAW mouhahhaha
XSP is the way to go and has been since september
Sr. Member
Nov 17, 2014
807 posts
277 upvotes
alexcalvado wrote: 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 $3.36, or 13%
Deal Addict
User avatar
Aug 4, 2014
2391 posts
1911 upvotes
Toronto, ON
Beefeater wrote: It appears that, ignoring dividends, the price of your favorite ETF, XSP, has dropped more than XAW since September 2018.
He’s sitting with mostly cash since September, and uses XSP for swing trading while the markets are on the way down, so “beating the index” more in the unhedged XSP (which is S&P 500 only, while XAW also has US mid and small caps, developed countries and emerging markets companies in it) I.e. comparing completely different products - and strategies :)
Sr. Member
User avatar
Feb 5, 2017
807 posts
595 upvotes
freilona wrote: He’s sitting with mostly cash since September, and uses XSP for swing trading while the markets are on the way down, so “beating the index” more in the unhedged XSP (which is S&P 500 only, while XAW also has US mid and small caps, developed countries and emerging markets companies in it) I.e. comparing completely different products - and strategies :)
couldnt have said it better myself..
sold XAW back in june at 26.60$ (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
Jr. Member
Feb 8, 2018
126 posts
41 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
Jr. Member
Feb 8, 2018
126 posts
41 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 $50K RRSP contribution room !
Thanks in advance ...
1) I would not pay off the mortgage as much as possible because the money is still cheap (interest rate is low)
2) obviously, use RESP as much as possible to fully utilize help from the government
3) There is no universal receipt about RRSP. For you probably is better to save the room till your wife gets full time job. You need to learn more about RRSP and how it suits your family best
Deal Addict
Jul 15, 2009
1782 posts
883 upvotes
amal1595 wrote: And then we need to add inflation, 2018 US dollar is 4.4 times cheaper than 1976 dollar..
Means 5670$ 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%?

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