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RRSP Sunlife seg funds to Questrade CCP ETFs

  • Last Updated:
  • Feb 2nd, 2018 7:58 am
[OP]
Sr. Member
Nov 8, 2011
888 posts
426 upvotes
NEPEAN

RRSP Sunlife seg funds to Questrade CCP ETFs

Hi all,

I am in the process of moving my RRSP from Sunlife to Questrade. I don't want to deal with the high MER anymore (1.45%). It was a group plan initially so I am in segregated funds, specifically a balanced growth fund. I make bi-weekly contributions which I will continue to do but leave it in cash and use it to re-balance every January and June. I am 30 years old.

The breakdown of the fund I hold is:
  • 30% Fixed Income
  • 20% Canadian Equity
  • 20% US Equity
  • 20% International Equity
  • 10% Other

I am moving to Questrade and considering going with an Aggressive ETF Canadian Couch Potato option:
  • 10% ZAG
  • 30% VCN
  • 60% XAW

I am slightly concerned with the lower bond holding but I am relatively young and shouldn't hold too much in bonds anyways. I don't want to actively manage this aside from the bi-annual re-balancing. I should have the cash in my Questrade account within 2 weeks - I guess I just buy everything as soon as I have the funds, don't look back? Or should I invest half now then the other half in June when I re-balance?
Last edited by nickwa on Feb 1st, 2018 3:57 pm, edited 1 time in total.
4 replies
Newbie
Sep 23, 2006
40 posts
4 upvotes
Final stage of zen passive investing enlightenment is to admit that no one truly knows which way the market will go and when.

So the half could gain or lose with either choice.

Follow the passive investment mantra that time in the market will be more of a benefit than timing the market.

Btw, your etf allocation is off by 5%.
[OP]
Sr. Member
Nov 8, 2011
888 posts
426 upvotes
NEPEAN
venturevul wrote: Final stage of zen passive investing enlightenment is to admit that no one truly knows which way the market will go and when.

So the half could gain or lose with either choice.

Follow the passive investment mantra that time in the market will be more of a benefit than timing the market.

Btw, your etf allocation is off by 5%.
Thanks, fixed.

I have always been led to believe that dollar cost averaging was the ideal way to invest. I have read a few places lately that isn't always true, like you say.
Deal Fanatic
May 31, 2007
5018 posts
2162 upvotes
nickwa wrote: Hi all,

I am in the process of moving my RRSP from Sunlife to Questrade. I don't want to deal with the high MER anymore (1.45%). It was a group plan initially so I am in segregated funds, specifically a balanced growth fund. I make bi-weekly contributions which I will continue to do but leave it in cash and use it to re-balance every January and June. I am 30 years old.

The breakdown of the fund I hold is:
  • 30% Fixed Income
  • 20% Canadian Equity
  • 20% US Equity
  • 20% International Equity
  • 10% Other

I am moving to Questrade and considering going with an Aggressive ETF Canadian Couch Potato option:
  • 10% ZAG
  • 30% VCN
  • 60% XAW

I am slightly concerned with the lower bond holding but I am relatively young and shouldn't hold too much in bonds anyways. I don't want to actively manage this aside from the bi-annual re-balancing. I should have the cash in my Questrade account within 2 weeks - I guess I just buy everything as soon as I have the funds, don't look back? Or should I invest half now then the other half in June when I re-balance?
Invest it all now, dont try and time the market. And consider your allocation again, because you say you are slightly concerned about "lower bond " holding. If the stock market crashes, how will this affect you ? For example, an all equity portfolio took almost 5 years to recover after 2008. One with 40% bonds about 2 years.

Maybe people sold in stock market crash and missed recovery. The psychology and fear can be very hard to overcome.
[OP]
Sr. Member
Nov 8, 2011
888 posts
426 upvotes
NEPEAN
Jungle wrote: Invest it all now, dont try and time the market. And consider your allocation again, because you say you are slightly concerned about "lower bond " holding. If the stock market crashes, how will this affect you ? For example, an all equity portfolio took almost 5 years to recover after 2008. One with 40% bonds about 2 years.

Maybe people sold in stock market crash and missed recovery. The psychology and fear can be very hard to overcome.

It is interesting looking at CCP 20-year annualized returns, the 10% bond allocation AGGRESSIVE is 6.63% while the 40% bond allocation BALANCED is 6.56%. I won't be drawing on my RRSP for minimum 30 years. If I were to match my current allocation at Sunlife (which turned 9.2% after fees) it would look something like:
  • 40% ZAG
  • 20% VCN
  • 40% XAW

I won't be touching it, aside from re-balancing, and I am part of a defined benefit pension plan through my job, so the RRSP won't be my main source of income in retirement.

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