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The diversification you'll have with developed economies should be sufficient until you have 6 figures+ invested (at least, that's what I read once before and it made sense to me). Reason being that the correlation between economies and stock markets aren't as strong in developing as they are in developed markets (due to corruption, inefficiencies, societal instabilities etc) , and their market cap is only like 10%. Ergo the volatility/speculative bubbles that can emerge aren't worth it for low net worth investors as you don't have the imperative to chase those diminishing returns on capital. Or something along those lines. Basically,quote:perfect is the enemy of good e. I totes wish I had spare cash to invest because I know markets are gonna take a pounding this week in light of the Greek thing and 
Guest2553 fucked around with this message at 04:41 on Jul 6, 2015 |
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Jul 6, 2015 04:34
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gently caress, edit and quote are really close together on a phone screen
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Jul 6, 2015 04:39
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So, how much is every currency other than the US$ going to tank in the coming weeks/months due to this whole Greece clusterfuck?
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Jul 6, 2015 07:22
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Not trying to time it but, I do have cash ready to take advantage of this stock sale.
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Jul 6, 2015 14:20
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I guess technically I do have a few grand I could throw down but I don't have any vehicles with which to do so 
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Jul 6, 2015 16:35
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pseudodragon posted:By the time things hit the news, most of the big players that can actually move markets have already considered it and it's already in the price so acting on news just means you're ovrcorrecting. This is the real truth of the markets. If it's in a headline it means it's been known to the 'smart money' for weeks and you're just giving them liquidity to get off their positions. There is zero justification for an individual with no special market insight to actively trade their position, and very little justification to pick funds with managers that claim special insight (because they consistently charge more than that insight is worth in fees). Lexicon posted:Great question, and the clarification is very helpful. In short, yes, the goal is to approximate the global economy - but that goal is in conflict with other goals, such as home bias for currency/tax preference, as well as the goal of low cost simplicity. This is really important to understand - global diversification is important but local currency exposure for inflation hedging is at least as important. The short answer is that you won't be devastated by missing out on Chinese equities. slidebite posted:So, how much is every currency other than the US$ going to tank in the coming weeks/months due to this whole Greece clusterfuck? Not that much tbh, euro will dive vs everything but there's no particular reason for an outsized trade in C$. The news on US inventories today is much more important.
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Jul 6, 2015 23:03
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Kalenn Istarion posted:Not that much tbh, euro will dive vs everything but there's no particular reason for an outsized trade in C$. The news on US inventories today is much more important.  vs  exchange, not the least of which is the oil glut and speculation about Iran getting its supplies on stream too.
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Jul 7, 2015 00:20
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All of this talk about not timing markets etc. etc. is Good and True, but god drat if I'm not enjoying being 100% in U.S. dollar index funds right now. 
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Jul 7, 2015 00:23
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Currency hedging is a useful tool, but honestly there aren't many scenarios where you'd expect the Canadian dollar to soar while that of the US eats poo poo. I'd much rather own funds holding US securities so I get double upside.
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Jul 7, 2015 01:26
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cowofwar posted:Currency hedging is a useful tool, but honestly there aren't many scenarios where you'd expect the Canadian dollar to soar while that of the US eats poo poo. I'd much rather own funds holding US securities so I get double upside. I think you misread my post- all of my asset allocation right now (with a small exception) is in USD denominated US index funds. 
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Jul 7, 2015 01:38
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cowofwar posted:Currency hedging is a useful tool, but honestly there aren't many scenarios where you'd expect the Canadian dollar to soar while that of the US eats poo poo. I'd much rather own funds holding US securities so I get double upside. I'm totally down with owning USD denominated things, but let's be clear: the future on this is unknowable. No one in 2000 had the slightest expectation that within the decade CADUSD would occasionally pop over 1.
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Jul 7, 2015 02:45
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Lexicon posted:I'm totally down with owning USD denominated things, but let's be clear: the future on this is unknowable. No one in 2000 had the slightest expectation that within the decade CADUSD would occasionally pop over 1. Yeah, it's definitely slightly speculative, even with index funds. Call it a hunch.
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Jul 7, 2015 04:06
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Franks Happy Place posted:I think you misread my post- all of my asset allocation right now (with a small exception) is in USD denominated US index funds. And yeah, it's speculative, but I'm not long on oil so as a result I am not long Canadian currency.
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Jul 7, 2015 04:14
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The BoC has cut interest rates another 0.25%. Once again, it is going to be interesting to see how the Banks respond to this.
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Jul 15, 2015 15:18
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Kal Torak posted:The BoC has cut interest rates another 0.25%. Once again, it is going to be interesting to see how the Banks respond to this. Even cheaper lending so more people buy bigger houses and it all falls down.
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Jul 15, 2015 16:00
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sbaldrick posted:Even cheaper lending so more people buy bigger houses and it all falls down. TD has decreased by only 10 basis points so the result will be pretty minor. I assume the other banks will follow. This means the banks are a full 25 basis points behind in 2015 alone. Of course, once the economy turns around and interest rates rise, you know the banks will be increasing the full amount. Those with any variable rate loan based on the prime rate are getting screwed. I hate the banks.
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Jul 15, 2015 16:07
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Kal Torak posted:TD has decreased by only 10 basis points so the result will be pretty minor. I assume the other banks will follow. This means the banks are a full 25 basis points behind in 2015 alone. Even with a 10 basis point drop TD offers a discount of 25-40 basis points on 5 year fixed. They will probably err on the lower going forward. Sucks to me be I already signed on for a 2.68 fixed. Don't hate the banks, own a spread of the financials for your Canada allocation.
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Jul 15, 2015 16:11
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My mother has finally run out of money and realizes that she needs to trade in her brand-new 4-door Mini Cooper for something that doesn't chug premium petrol. Can anyone recommend debt counselling or consolidation in Toronto?
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Jul 18, 2015 17:15
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I've got cash to max out my TFSA (TD ETF's). After a bit of reading, it seems that a lump sum contribution more often than not beats out monthly contributions in this case (whereas it's better to make monthly contributions vs saving for a lump sum contribution). Sound about right? I'm assuming the current Canadian market has no bearing on any decision I should make. But should I just keep to my basic CPP ratio (30% CDN Index, 30% US Index, 30% International Index, 10% CD Bonds...TDB 900, 902, 911 and 909 respectionvely)? Or favor the heavily discounted Canadian market? I'm still fairly green with my CPP (and investing in general).
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Jul 21, 2015 05:04
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I'd personally want way less canadian exposure than that, maybe 10% but definitely no more than 15. How old are you and what's your time frame? As long as you're in the market you'll benefit eventually so don't worry about finding the perfect ratios. e. As for why - even if the canadian economy was a shining beacon of stability, diversification and prosperity (its not lol) I don't want something with a market cap of 4% to represent a full third of my stock portfolio. In a TFSA there's no preferential tax treatment of CDN equities (aside from the obvious), and if it's babby's first investment vehicle you're not at the level where you have to manage multiple accounts to reduce tax liability (its OK I'm not either). Guest2553 fucked around with this message at 18:35 on Jul 21, 2015 |
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Jul 21, 2015 18:27
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Guest2553 posted:In a TFSA there's no preferential tax treatment of CDN equities (aside from the obvious) There's no preferential treatment in an RRSP either, right? And what is obvious?
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Jul 21, 2015 19:51
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Some foreign securities may still be subject to withholding tax while inside a tfsa or rrsp and this isn't recoverable or netable against your overall tax bill, unlike withholding tax on securities which are in a taxable account. I can't remember whether U.S. Stocks fall into one of those buckets or not. E: you still avoid paying Canadian tax on those earnings so it's still worth it in most cases although less so. There are some edge cases where your Canadian tax rate is lower than the witholding rate or in an rrsp where your current and future tax rates are close that it might be better to keep that security out of your rrsp. It's case by case. Kalenn Istarion fucked around with this message at 21:37 on Jul 21, 2015 |
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Jul 21, 2015 21:34
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I am somewhat kicking myself for not having a higher ratio of US index funds. Its up 30% over the last 12 months. And I don't see the CDN dollar rising anytime soon. I'm also in the situation of having a lump of cash ready to invest, however I'm hesitant to put it in my RSP until company match time. On the off chance I lose my job, I'd rather put it towards my TFSA, or just boost my emergency fund. Ideally I would have bought more US and International a week ago before it jumped 4-6%.
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Jul 21, 2015 21:39
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Rick Rickshaw posted:There's no preferential treatment in an RRSP either, right? And what is obvious? No tax is paid on gains (or is deferred in the case of RRSPs) so preferential taxation is a moot point by comparison. Not being able to reclaim withholding on foreign equities does add a couple dozen basis points worth of drag but is still worth it for those tax free capital gainz. Some US withholding can be reclaimed in RRSPs though. Guest2553 fucked around with this message at 22:32 on Jul 21, 2015 |
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Jul 21, 2015 22:29
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How do I actually read these statements and see how my investments are doing. They never give percentages or gains, they just tell me a bunch of values, book value and current value and so on. Do I just want to compare the current value to the book value to see how much it's gone up or down since I bought the funds?
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Jul 21, 2015 22:56
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Baronjutter posted:How do I actually read these statements and see how my investments are doing. They never give percentages or gains, they just tell me a bunch of values, book value and current value and so on. Do I just want to compare the current value to the book value to see how much it's gone up or down since I bought the funds? It's a bit trickier than that unfortunately as you're almost certainly reinvesting dividends, and that counts towards your book value. You're really best off keeping track of your own contributions and comparing that to the current value.
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Jul 21, 2015 23:05
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Lexicon posted:It's a bit trickier than that unfortunately as you're almost certainly reinvesting dividends, and that counts towards your book value. You're really best off keeping track of your own contributions and comparing that to the current value. It seems crazy that they don't present you with little graphs or like, actual info...
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Jul 21, 2015 23:06
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Baronjutter posted:It seems crazy that they don't present you with little graphs or like, actual info... Their documentation and general web infrastructure are utter poo poo. The only good thing about them is the reasonably priced index funds.
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Jul 21, 2015 23:10
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You're in luck. The last two articles on Canadian Couch Potato were about calculating rates of return. You'll have to do a bit of work though, it's not as easy as it sounds. 1.) http://canadiancouchpotato.com/2015/07/13/calculating-your-portfolios-rate-of-return/ 2.) http://canadiancouchpotato.com/2015/07/20/how-contributions-affect-your-rate-of-return/
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Jul 22, 2015 01:06
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Guest2553 posted:No tax is paid on gains (or is deferred in the case of RRSPs) so preferential taxation is a moot point by comparison. Not being able to reclaim withholding on foreign equities does add a couple dozen basis points worth of drag but is still worth it for those tax free capital gainz. Some US withholding can be reclaimed in RRSPs though. There is no US withholding in RRSPs as they are treaty protected.
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Jul 22, 2015 03:02
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Kal Torak posted:There is no US withholding in RRSPs as they are treaty protected. This is correct, I'm unsure about TFSAs though. Also RRSPs are not tax free, they are tax deferred. Any witholding drag in your rrsp can be the difference between a good and bad (relative) outcome if your retirement tax rate isn't materially lower than your current one.
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Jul 22, 2015 10:22
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Kalenn Istarion posted:This is correct, I'm unsure about TFSAs though. TFSA's are not treaty protected. There is a 15% withholding on US dividends that you cannot recover.
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Jul 22, 2015 14:41
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Lexicon posted:It's a bit trickier than that unfortunately as you're almost certainly reinvesting dividends, and that counts towards your book value. You're really best off keeping track of your own contributions and comparing that to the current value. Am I correct to assume that dividends that are reinvested don't count against your TFSA contribution cap? It's only the money that I have originally transferred into the TFSA that goes against the contribution limit? EDIT: Nvm I just googled this and it appears this is the case http://www.td.com/to-our-customers/tdhelps/#psce%7Ccid=871%7Clid=1%7Ctid=001%7Cvid=e0b100214 milkrun fucked around with this message at 14:37 on Jul 25, 2015 |
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Jul 25, 2015 14:34
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So I'm really hosed financially right now but with a small light at the end of the tunnel. I just got hired to begin my career as a teacher supply teaching in Ottawa which is a significant boost in salary BUT I have tons of outstanding debt that I don't know what the best option is to tackle. If anyone can give me some helpful solutions, that'd be great. OUTSTANDING:
I'm most worried about the $1300 in collections currently they've been aggressively calling me. When I spoke with them I was frank and let them know I"m in no financial situation to be able to pay it off at the moment. They didn't offer any form of payment, they want it in full. Their only advice was to go to a pay day loan place or ask family. Both my parents are in debt themselves & my friends are all recent grads like myself. I just called my bank and based on my failed application for overdraft protection back in June, they highly advised against me even doing a credit check for a loan. I currently have $585 remaining in my bank account after buying groceries and other necessities for the next week or two. I will make another $1500 take home at my job before relocating. Supply teaching I will make $240 daily before taxes but I don't know how close to full time that will be. Suggestions?!
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Jul 25, 2015 19:16
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Good Canadian Boy posted:So I'm really hosed financially right now but with a small light at the end of the tunnel. I just got hired to begin my career as a teacher supply teaching in Ottawa which is a significant boost in salary BUT I have tons of outstanding debt that I don't know what the best option is to tackle. http://www.nomoredebts.org/canada/ontario/ottawa/credit-counselling.html Go there ASAP, the sooner you have a plan the less interest you might pay down the road. Also ensure that the collections agency is following the rules set out by http://www.ontario.ca/home-and-community/collection-agency-your-rights
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Jul 25, 2015 20:47
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Good Canadian Boy posted:So I'm really hosed financially right now but with a small light at the end of the tunnel. I just got hired to begin my career as a teacher supply teaching in Ottawa which is a significant boost in salary BUT I have tons of outstanding debt that I don't know what the best option is to tackle. First off don't even think of payday loans. I passed a place yesterday that was offering 300$ for two weeks for 20$. That's 173 APR! Apatheticman's suggesting is likely your best bet unless you want to try declaring bankruptcy. http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02048.html That would not take care of the student loan. Unless it has been 7 years since you were a student http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02057.html Ouroborus fucked around with this message at 22:42 on Aug 4, 2015 |
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Aug 4, 2015 22:38
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Now for my question. I'm paying off my mortgage this week. (yay!) I am wanting to start investing. I was talking to a co-worker about what he invests in. Turns out he invests in BMO for the dividends. BMO's stock is pretty expensive so I looked elsewhere. I found a couple groups of groups of companies. Mortgage Investment Corporations (MICs) and Real Estate Investment Trusts (REITS) that provide way better return. One particular MIC, Timbercreek http://www.timbercreekmic.com/ (TSE:TMC https://www.google.ca/finance?q=TSE%3ATMC&ei=xTTBVbDJDK_xigKlrq6wDQ ) seems to be running 8+% (currently 8.1% return in dividend) and has for years. Their Dividend Reinvestment Program (DRIP) provides a 5% discount on stock they had to issue to satisfy the DRIP I saw another company, CREIT http://creit.ca/Investor-Information/Corporate-Overview.aspx (TSE:REF.UN https://www.google.ca/finance?cid=666920 ) that claims since they started in 1993 they've had an annualized return of 15% with an ~4.% dividend and a 4% DRIP bonus to all purchases made with dividends These companies get little attention. I found some write ups on the Motley Fool ( http://www.fool.ca/company/Timbercreek+Mortgage+Investment+Corp./?ticker=TSX-TMC ) and Moneysense ( http://www.moneysense.ca/columns/mics-make-money-on-debt/ ) that mention Timbercreek and one for CREIT on the Motley Fool ( http://www.fool.ca/2015/04/09/get-high-quality-real-estate-income-from-canadian-reit/ ) My question is: Am I missing something here? These look like they would be good sorts of stocks to own, simply to hold for the dividends but nobody seems to talk much about them. Are they all scammy? Are they just so boring nobody cares to look?
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Aug 4, 2015 23:14
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Crossposting from the BFC chat thread: Are there any calculators online that tell me how much money to contribute to an account to rebalance? I want an allocation of, say: Fund A: 30% Fund B: 30% Fund C: 40% Because of market fluctuations, it's currently at something like: Fund A: 22% Fund B: 36% Fund C: 52% I don't want to sell anything because that's how Questrade collects fees, and I have some cash to invest so I want to know how much to transfer then invest to balance all that poo poo out. I'm tired of going through this manually.
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Aug 5, 2015 02:42
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tuyop posted:Crossposting from the BFC chat thread: I'm lazy and downloaded one of these; replaced certain rows with my holdings. Works well...if you add columns you have to manually determine one of the values yourself though. http://www.squawkfox.com/2012/02/07/rebalance-portfolio/
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Aug 5, 2015 03:54
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So, Bernstein says to treat your whole portfolio as one account. I have an RRSP and TFSA and they're both pretty out of balance at this point. I don't want to contribute to my RRSP for awhile and I don't want to sell funds and incur fees, does Bernstein's advice mean I can just throw money into my TFSA and "overbalance" my allocation there to make my whole portfolio balanced, provided both accounts contain the same funds? It seems dangerous because of the difference in tax treatment and balance of both the accounts. The RRSP has much more money in it and I don't want most of my money to be exposed to too much risk because of a skewed allocation, but maybe I'm just thinking of this the wrong way? There's also the concern that later I'll have to pay tax on the RRSP balance.
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Aug 5, 2015 18:35
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