Investing

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

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  • Jan 19th, 2022 9:37 pm
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Deal Addict
Jul 8, 2013
2118 posts
3012 upvotes
Red Deer, AB
cheapshopper wrote: my 15% bonds ETF is all in RRSP, $0 in Cash account / TFSA.
The only reason I hold bonds is IF I need to draw money during retirement and market is down, I can draw from bonds.
In my mind, I want to keep it at 15%. I just start questioning myself when all the reading suggest I need to start move to 60/40 if I plan to retire in 5 years,
At the back of my mind, I just want to keep it at 15%.

Seem like I making the right choice.

BTW, when you say you are close to "Winning the game". What is the definition of that?
Does it mean have enough to retire?
Or is your goal, whatever the goal is?

I have a very specific goal.
1). Fund my kids educations.
2). Fund our retirement, no need to put any pressure on my kids.
3). Buy the first Condo/Townhouse whatever the "Starter" unit for my 2 daughter.
4). Have at least $2M for each of my daughter when we are not here. This one is a done deal by using insurance policy.

I think I am almost there............
I've got 3 kids ages 1 to 10, and I have zero desire to leave them anything. Sure, if there is money leftover then OK they can heave some when we die.

But my main goal is to teach them how money works, how to invest, why discipline matters, how compounding works, etc. I'd rather teach my kids how to be self-sufficient than to have a desire to give them anything. Why?

So do your daughters know that they will each get $2M+? Do they know your financial situation?

As for me, I just want enough to have a good, comfortable life. That is around $4K to $6K after-tax per month. Meaning, I need b/w $1.2M and $1.5M in portfolio and no debt.

I agree with your thinking of keeping 15% in bonds. For me personally, I'd like to keep about 4 years of expenses in cash/bonds/fixed income for the exact same reason that you mentioned.
TFSA: XAW | RRSP: VEQT + VAB | Non-Reg: Dividend-paying individual stocks (tax purposes)
Deal Addict
Jan 31, 2007
3455 posts
3128 upvotes
Richmond Hill
TuxedoBlack wrote: I've got 3 kids ages 1 to 10, and I have zero desire to leave them anything. Sure, if there is money leftover then OK they can heave some when we die.

But my main goal is to teach them how money works, how to invest, why discipline matters, how compounding works, etc. I'd rather teach my kids how to be self-sufficient than to have a desire to give them anything. Why?

So do your daughters know that they will each get $2M+? Do they know your financial situation?

As for me, I just want enough to have a good, comfortable life. That is around $4K to $6K after-tax per month. Meaning, I need b/w $1.2M and $1.5M in portfolio and no debt.

I agree with your thinking of keeping 15% in bonds. For me personally, I'd like to keep about 4 years of expenses in cash/bonds/fixed income for the exact same reason that you mentioned.
No, my kids do NOT know any of those plan and they do NOT know family financial. They will only see those after we are gone.

My daughter are 10 and 15, and i am teaching them about investing, savings, and concept of you MUST spend less than what you make, have money on the side in case you need money.
I know a lot of teens (even adult) spending money that they dont have, and that is a start of a big problem.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Expert
User avatar
Dec 12, 2009
22496 posts
11299 upvotes
Toronto
cheapshopper wrote: No, my kids do NOT know any of those plan and they do NOT know family financial. They will only see those after we are gone.

My daughter are 10 and 15, and i am teaching them about investing, savings, and concept of you MUST spend less than what you make, have money on the side in case you need money.
I know a lot of teens (even adult) spending money that they dont have, and that is a start of a big problem.
Your kids are still a little too young. It won't be long before they figure it out. When you start paying for every expensive item they ask for and their friends are not getting the same from their parents, it will be apparent that you have deep pockets. My kids are older and they know exactly my financial situation and future plans. It stirs zero emotions which is the way it should be.
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Dec 12, 2009
22496 posts
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Toronto
TuxedoBlack wrote: I've got 3 kids ages 1 to 10, and I have zero desire to leave them anything. Sure, if there is money leftover then OK they can heave some when we die.

But my main goal is to teach them how money works, how to invest, why discipline matters, how compounding works, etc. I'd rather teach my kids how to be self-sufficient than to have a desire to give them anything. Why?

So do your daughters know that they will each get $2M+? Do they know your financial situation?

As for me, I just want enough to have a good, comfortable life. That is around $4K to $6K after-tax per month. Meaning, I need b/w $1.2M and $1.5M in portfolio and no debt.

I agree with your thinking of keeping 15% in bonds. For me personally, I'd like to keep about 4 years of expenses in cash/bonds/fixed income for the exact same reason that you mentioned.
You know that conservative planning could leave you richer in the end. Leaving something on the table will a natural outcome.
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Deal Addict
Jan 31, 2007
3455 posts
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Richmond Hill
will888 wrote: Your kids are still a little too young. It won't be long before they figure it out. When you start paying for every expensive item they ask for and their friends are not getting the same from their parents, it will be apparent that you have deep pockets. My kids are older and they know exactly my financial situation and future plans. It stirs zero emotions which is the way it should be.
Is complete opposite. Their friends have all the expensive stuff and my kids doesn't. I cant believe 15 years old now wearing $2k winter jacket, using $4k handbags, etc. One turn 16 and book a fine dining restaurant in downtown plus a limo to bring her friends there. The most extreme one got a private jet in the family. Decided to go Florida to spend the weekend with 12 hours notice, with a beach side home in Florida.
So, no, we are the poor one.

All those kids are in public school.
Last edited by cheapshopper on Jan 8th, 2022 1:44 pm, edited 1 time in total.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Expert
User avatar
Dec 12, 2009
22496 posts
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Toronto
cheapshopper wrote: Is complete opposite. Their friends have all the expensive stuff and my kids doesn't. I cant believe 15 years old now wearing $2k winter jacket, using $4k handbags, etc. One turn 16 and book a fine dining restaurant in downtown plus a limo to bring her friends there. The most extreme one got a private jet in the family. Decided to go Florida to spend the weekend in 12 hours notice, with a beach side home in Florida.
So, no, we are the poor one.

All those kids are in public school.
Wow you better work harder and longer. (•‿•)
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Feb 1, 2012
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Thunder Bay, ON
TuxedoBlack wrote: I've got 3 kids ages 1 to 10, and I have zero desire to leave them anything. Sure, if there is money leftover then OK they can heave some when we die.
Electric Light BulbSmiling Face With Sunglasses
My parents traveled extensively after my dad retired, they had a recreational property and a timeshare in Vegas (back when timeshares were not such a pariah). Seeing them travel and enjoy retirement was more meaningful to me than any inheritance ever could have been.
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
Deal Addict
Jan 31, 2007
3455 posts
3128 upvotes
Richmond Hill
My total portfolio size went down $100K since Jan 4.
Sadly I already top up my TFSA and RESP on Jan 5.

Well, let see how will 2022 goes. So many people say by summer we be down 10+%. Will see.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Expert
User avatar
Dec 12, 2009
22496 posts
11299 upvotes
Toronto
cheapshopper wrote: My total portfolio size went down $100K since Jan 4.
Sadly I already top up my TFSA and RESP on Jan 5.

Well, let see how will 2022 goes. So many people say by summer we be down 10+%. Will see.
Don't use absolute values, convert to percentage. For someone with a $200,000 account, $100,000 loss is devastating. For a 7 figure account, it is not so bad.
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Deal Addict
Jan 31, 2007
3455 posts
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Richmond Hill
will888 wrote: Don't use absolute values, convert to percentage. For someone with a $200,000 account, $100,000 loss is devastating. For a 7 figure account, it is not so bad.
True, it work out approx. 2.5% drop.
it is just because it SHOW me the dollar value first, and when talking about money, is always talking dollar. So it always come into my mind first.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Expert
User avatar
Dec 12, 2009
22496 posts
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Toronto
cheapshopper wrote: True, it work out approx. 2.5% drop.
it is just because it SHOW me the dollar value first, and when talking about money, is always talking dollar. So it always come into my mind first.
This is not even a flesh wound. You have plenty of dry powder. The Nasdaq has clawed back to near break even, hint, hint.
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Deal Addict
Jul 8, 2013
2118 posts
3012 upvotes
Red Deer, AB
freilona wrote: Couch Potato Portfolio Returns for 2021 are in:


EA978EBC-A49D-495F-B3D6-A09EB2756F55.jpeg
Nice!

Equal-weight TD e-series mutual funds (25% allocation each to US, CAD, Int'l, and Bonds) which is very well balanced as well as diversified returned 14.35%. Since 2004, the average annual return is 7.84%

My TFSA (XAW) had an overall growth of 18.23% but it is 100% in foreign equities.

My RRSP with 25% bonds allocation yielded 14.03% which is actually less than TD e-series mutual funds.

Everyone did well so long as they were fully invested. Thanks for sharing.
TFSA: XAW | RRSP: VEQT + VAB | Non-Reg: Dividend-paying individual stocks (tax purposes)
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User avatar
Aug 4, 2014
3826 posts
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Toronto, ON
TuxedoBlack wrote: Nice!

Equal-weight TD e-series mutual funds (25% allocation each to US, CAD, Int'l, and Bonds) which is very well balanced as well as diversified returned 14.35%. Since 2004, the average annual return is 7.84%

My TFSA (XAW) had an overall growth of 18.23% but it is 100% in foreign equities.

My RRSP with 25% bonds allocation yielded 14.03% which is actually less than TD e-series mutual funds.

Everyone did well so long as they were fully invested. Thanks for sharing.
Yeah so far our portfolio averaged 10% since I started tracking it in 2014, with 2018 the only slightly negative year:

2015 8.1%
2016 10.6%
2017 13.1%
2018 -2.2%
2019 14.6%
2020 10.3%
2021 15.2%

I’m mentally prepared for this year to be negative again, but will be pleasantly surprised otherwise :)
Deal Fanatic
Mar 24, 2008
6116 posts
2428 upvotes
Toronto
I think markets will turn around and start going up. Fed potentially raising interest rates by 0.75% this year and stopping QE couldn't be the reason for a crash, could it?

But then again, nobody knows nothing. So far it's only a 2-3% drop which doesn't get me excited. It'll take a proper bear market to get my attention. Lol
TFSA: XAW | RRSP: AOR | Non-registered: XGRO + HISA/GICs
Deal Expert
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Dec 12, 2009
22496 posts
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Toronto
freilona wrote: Yeah so far our portfolio averaged 10% since I started tracking it in 2014, with 2018 the only slightly negative year:

2015 8.1%
2016 10.6%
2017 13.1%
2018 -2.2%
2019 14.6%
2020 10.3%
2021 15.2%

I’m mentally prepared for this year to be negative again, but will be pleasantly surprised otherwise :)
Perish that thought. Hiking rates to 1.25-1.5% will not collapse the economy nor the stock market. Failure to tame inflation will tank everything. Anyway, we should see another double digit return year for the S&P 500, not 25% probably half that. Powell is a smooth talker and he will talk all the market bears off the edge of the cliff. Last year when everyone was suggesting the Fed should start to tighten he successfully fought for his job by saying he was laser focused on full employment to make the recovery inclusive. Today he tells the story how he is laser focused on inflation because it hurts those who least can afford it. This guy really can suck and blow at the same time.
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Member
Sep 28, 2011
433 posts
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Winnipeg
cheapshopper wrote: My total portfolio size went down $100K since Jan 4.
Sadly I already top up my TFSA and RESP on Jan 5.
That's unfortunate, hopefully things will bounce back quickly.

However, under the category of every cloud has a silver lining. Thank you, I'm going to show your post to my wife. Now I can use it as proof that procrastination (mine) saves money. Winking Face
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Mar 10, 2018
4394 posts
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does it matter?
just downloaded from TD account. my few cents compared to op. or 99% of RFDers here.
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Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.
Deal Fanatic
Mar 24, 2008
6116 posts
2428 upvotes
Toronto
cheapshopper wrote: My total portfolio size went down $100K since Jan 4.
Sadly I already top up my TFSA and RESP on Jan 5.

Well, let see how will 2022 goes. So many people say by summer we be down 10+%. Will see.
I moved my TFSA from Scotiabank to Wealthsimple and liquidated my XAW position at the end of December so I don't have to pay transfer fees. The deposit did not complete until today and I got lucky with my purchase today to the tune of ~3.25% or so. Not a huge deal but I'll take it. Grinning Face With Smiling Eyes
TFSA: XAW | RRSP: AOR | Non-registered: XGRO + HISA/GICs
Deal Addict
Jan 31, 2007
3455 posts
3128 upvotes
Richmond Hill
ksgill wrote: I moved my TFSA from Scotiabank to Wealthsimple and liquidated my XAW position at the end of December so I don't have to pay transfer fees. The deposit did not complete until today and I got lucky with my purchase today to the tune of ~3.25% or so. Not a huge deal but I'll take it. Grinning Face With Smiling Eyes
Oh thanks for rubbing it right on my face ... Disappointed But Relieved Face
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************

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