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Couch potato investing for the last 18 years - tracking my progress

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Sr. Member
Sep 28, 2011
818 posts
1481 upvotes
Winnipeg
TuxedoBlack wrote: He also merely glossed over the massive tax advantage that we get with Canadian dividend-paying stocks.
Is this not subject to the province you live in and your income level?

Looking at TaxTips:

  • In NL, if your income is over $50,197, capital gains are taxed at a lower rate, under that dividends.
  • In MB, if your income is over $74,416, capital gains are taxed at a lower rate, under that dividends.
  • In ON, if your income is over $100,392, capital gains are taxed at a lower rate, under that dividends.
  • In AB, if your income is over $131,220, capital gains are taxed at a lower rate, under that dividends.

I'm far from an expert in this area, if I'm wrong please correct me, so I know for the future. Winking Face
Deal Expert
User avatar
Dec 12, 2009
29541 posts
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Germack wrote: Very good points will888.

Sequence of return risk is something we have to worry about, however I do not believe dividend investment reduces that risk. It may actually increase it.

Early Retirement Now had an interesting article on that one:
https://earlyretirementnow.com/2019/02/ ... nt-page-1/
I am not seeing this impact for myself at least not yet. In the short term, I don't have to sell anything to support the budget. If the drawdown is persistent and I run out of liquidity, I will have to find a plan B. I can hang on like this for a couple of years, maybe a little longer. If only I had more money to more dividend stocks...
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Newbie
Mar 1, 2021
34 posts
49 upvotes
Toronto, Ontario
@Germack

Since you mostly invest in VGRO now, did you divest your other ETF holdings and TD Mutual Fund holdings or do you still hold the previous investments?
Deal Addict
Oct 1, 2006
3249 posts
4472 upvotes
Montreal
@lexgreen I did not divest my other ETF holdings. I am still holding them. The ones in my non-registered account are difficult to change since they have large capital gains and would trigger a big tax bill.
Newbie
Mar 1, 2021
34 posts
49 upvotes
Toronto, Ontario
@Germack


I'm in the same boat as you are. I'm currently holding TD Mutual Funds e-series (TDB900, TDB902, TDB911) and TD ETFs (TTP 35%, TPU 35%, TPE 30%). I was thinking of incorporating VUN and VIU, to achieve maximum diversification but I'm not sure if its even worth the effort. My line of thinking is that I would leave TTP as is because it is a Canadian broad market ETF and introduce VUN and VIU without selling TPU and TPE. Essentially, new deposits and dividends would be invested into TTP (35%), VUN (35%), and VIU (30%).
Deal Addict
Oct 25, 2009
1165 posts
1753 upvotes
cheapshopper wrote: But for Canadian equity still thinkin should i just hold VDY or hold high dividend paying stocks.

If i go dividend stock route, it would be like holding approximately 20 stock?
VDY Top 10 Holdings (70.58% of Total Assets)
Name Symbol % Assets
Royal Bank of Canada RY.TO 14.13%
The Toronto-Dominion Bank TD.TO 12.47%
Enbridge Inc ENB.TO 7.93%
Bank of Nova Scotia BNS.TO 7.72%
Bank of Montreal BMO.TO 6.49%
Canadian Imperial Bank of Commerce CM.TO 4.88%
TC Energy Corp TRP.TO 4.74%
BCE Inc BCE.TO 4.36%
Canadian Natural Resources Ltd CNQ.TO 4.12%
Manulife Financial Corp MFC.TO 3.74%

buy all these companies separately, probably earn higher % (I assume, didn't calculate) and don't pay etf MER ... why on earth would you buy this etf when you can hold the same companies and earn more $?
Deal Addict
Sep 28, 2006
1034 posts
353 upvotes
Toronto
Germack wrote: @lexgreen I did not divest my other ETF holdings. I am still holding them. The ones in my non-registered account are difficult to change since they have large capital gains and would trigger a big tax bill.
So what will you be doing with the non-registered account in the long run?
Deal Addict
Oct 1, 2006
3249 posts
4472 upvotes
Montreal
kkl1208 wrote: So what will you be doing with the non-registered account in the long run?
I will use it to fund my retirement. Once I do not earn a salary anymore capital gains taxes will be much lower when drawing down my portfolio.
Deal Fanatic
Jan 31, 2007
6371 posts
6733 upvotes
Center of Canada
dpwr wrote: VDY Top 10 Holdings (70.58% of Total Assets)
Name Symbol % Assets
Royal Bank of Canada RY.TO 14.13%
The Toronto-Dominion Bank TD.TO 12.47%
Enbridge Inc ENB.TO 7.93%
Bank of Nova Scotia BNS.TO 7.72%
Bank of Montreal BMO.TO 6.49%
Canadian Imperial Bank of Commerce CM.TO 4.88%
TC Energy Corp TRP.TO 4.74%
BCE Inc BCE.TO 4.36%
Canadian Natural Resources Ltd CNQ.TO 4.12%
Manulife Financial Corp MFC.TO 3.74%

buy all these companies separately, probably earn higher % (I assume, didn't calculate) and don't pay etf MER ... why on earth would you buy this etf when you can hold the same companies and earn more $?
Still working out the numbers. Nothing set in stone yet. In fact i plan to play with some number tonight.
******************************************************
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
29541 posts
20459 upvotes
dpwr wrote: VDY Top 10 Holdings (70.58% of Total Assets)
Name Symbol % Assets
Royal Bank of Canada RY.TO 14.13%
The Toronto-Dominion Bank TD.TO 12.47%
Enbridge Inc ENB.TO 7.93%
Bank of Nova Scotia BNS.TO 7.72%
Bank of Montreal BMO.TO 6.49%
Canadian Imperial Bank of Commerce CM.TO 4.88%
TC Energy Corp TRP.TO 4.74%
BCE Inc BCE.TO 4.36%
Canadian Natural Resources Ltd CNQ.TO 4.12%
Manulife Financial Corp MFC.TO 3.74%

buy all these companies separately, probably earn higher % (I assume, didn't calculate) and don't pay etf MER ... why on earth would you buy this etf when you can hold the same companies and earn more $?
The other 30% can make a difference. That's the compromise taken to go individual stocks over ETF. A mixture of stocks and ETFs can work together. I don't have any energy stocks and so I buy ETFs that have energy sector.
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Deal Addict
Oct 1, 2006
3249 posts
4472 upvotes
Montreal
More and more investors are treating financial markets like a casino more than anything else. The holding period of stocks has been decreasing significantly over the years. :(
FbLkusUVEAMpSm8.png
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
Germack wrote: More and more investors are treating financial markets like a casino more than anything else. The holding period of stocks has been decreasing significantly over the years. :(
What's the url link to that pls? What type of investors are being measured? Would not surprise me for Retail as access to information, such as real time prices are prevalent now. When I was in HS, I had access during a summer job to a Quotron, but typically you bought and held when your latest price was the COB prices provided in the newspaper. The structure of the financial markets has been changing at a breath taking pace since the 80's.
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Expert
Dec 5, 2006
16792 posts
12575 upvotes
Markham
Germack wrote: More and more investors are treating financial markets like a casino more than anything else. The holding period of stocks has been decreasing significantly over the years. :(

FbLkusUVEAMpSm8.png
That's so obvious
official-penny-stock-day-trade-short-term-2380738/

Even Buffett buy and sell pretty often in the past a few years. Just look at how soon he sold airplane stocks after purchase
Last edited by smartie on Aug 27th, 2022 6:26 pm, edited 1 time in total.
Deal Fanatic
Jan 31, 2007
6371 posts
6733 upvotes
Center of Canada
Germack wrote: More and more investors are treating financial markets like a casino more than anything else. The holding period of stocks has been decreasing significantly over the years. :(

FbLkusUVEAMpSm8.png
Nop, not me. I buy and hold for 22 years and counting.
******************************************************
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 Addict
Mar 10, 2010
1595 posts
589 upvotes
Perhaps the chart isn't measuring what it purports to measure. In the note it states that the holding period was determined by taking the value of the stock and dividing by turnover (which seems like a bizarre way to measure this).

I know the whole Robinhood generation bounce around a lot, but I think there's still a lot of buy and holders out there.
Sr. Member
Nov 8, 2011
838 posts
538 upvotes
Etobicoke
Would any of you suggest a couch potato investing approach for semi-retired with an investing horizon of 10 years? Trying to help an older family member build their portfolio.

My horizon is 25-30 years and I have 50% of my portfolio in VEQT. (I have slowly selling off my other stocks and diverting it into a CP approach but with volatility it’s been slow). Of course I understand I cannot make the same move for my family member hence the ask.

Insight would be greatly appreciated!
Deal Addict
Oct 1, 2006
3249 posts
4472 upvotes
Montreal
DToronto wrote: Would any of you suggest a couch potato investing approach for semi-retired with an investing horizon of 10 years? Trying to help an older family member build their portfolio.

My horizon is 25-30 years and I have 50% of my portfolio in VEQT. (I have slowly selling off my other stocks and diverting it into a CP approach but with volatility it’s been slow). Of course I understand I cannot make the same move for my family member hence the ask.

Insight would be greatly appreciated!
I see no reason why not. Just make sure to chose the right asset allocation (bonds/equities).
Deal Expert
Dec 5, 2006
16792 posts
12575 upvotes
Markham
DToronto wrote: Would any of you suggest a couch potato investing approach for semi-retired with an investing horizon of 10 years? Trying to help an older family member build their portfolio.

My horizon is 25-30 years and I have 50% of my portfolio in VEQT. (I have slowly selling off my other stocks and diverting it into a CP approach but with volatility it’s been slow). Of course I understand I cannot make the same move for my family member hence the ask.

Insight would be greatly appreciated!
It's important to know how much income he needs withdraw from this portfolio monthly or quarterly

You can't buy groceries from capital appreciation on paper

Also read this
decumulation-estate-planning-other-aspe ... #p34134690
Deal Addict
User avatar
Jul 25, 2015
2544 posts
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Burnaby, BC
Germack wrote: More and more investors are treating financial markets like a casino more than anything else. The holding period of stocks has been decreasing significantly over the years. :(

FbLkusUVEAMpSm8.png
Yup the new terminology is called "pump and dump". Buy and hold was replaced by it.
Newbie
Mar 11, 2022
80 posts
138 upvotes
YYZ 905
Your family member should be referred to a fee based advisor for a comprehensive solution. There are so many variables to optimize for a semi-retired individual (tax, estate, gift, charity, bucket list…etc) a yes or no on whether CP is appropriate may be too simple. Lastly I would caution providing financial advice to family member, often this lead to regrets and strain on relationships down the line. Good luck.
Courage. Temperance. Justice. Wisdom.

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