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I made my first RRSP contribution last week and used it to buy something today It's a spousal RRSP since I'm the only one working - and it's admittedly not much because of the pension adjustment I get - but I'm one stop closer to maxing out TFSA/RRSP this year, and maybe even opening up an unregistered account. It's all pretty exciting for me considering that 3 years ago I had recently started evening/weekend post-grad classes while working full time, just found out I was having a kid, and had a net worth of 33% annual salary that sat in a cash chequing account. By the end of this year I should have a net worth that's about double my current salary that's entirely liquid (92% ETFs, remainder cash), due in part to some of the people in this thread who took the time to answer dumbass questions from a stupid newbie. Thanks goons The one thing I haven't hashed out yet is asset locations. All 3 accounts are holding the same ETFs, but I figure the drag from that is way less than being out of the market until the stars are aligned just so. It'll be my thing to figure out for next year since I'll have an open account to worry about...
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# ? Jun 22, 2016 21:20 |
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# ? Jun 8, 2024 09:42 |
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https://www.investor.gov/tools/calculators/compound-interest-calculator https://en.wikipedia.org/wiki/Registered_Retirement_Savings_Plan quote:Contributions to RRSPs are deductible from total income, reducing income tax payable for the year in which the contributions are claimed.[4] No income earned in the account is taxed (including interest, dividends, capital gains, foreign exchange gains, mortality credits, etc.).[5] Most withdrawals are taxed as income when they are withdrawn.[6] This is the same tax treatment provided to Registered Pension Plans established by employers.[7][8] jesus loving christ man
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# ? Jun 22, 2016 22:51 |
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If that's a swipe at me I'm not savvy enough to get it
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# ? Jun 23, 2016 01:43 |
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I'm assuming that he is trying to imply that RRSP allocation should be weighed towards income generating assets like dividend funds.
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# ? Jun 23, 2016 01:48 |
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cowofwar posted:I'm assuming that he is trying to imply that RRSP allocation should be weighed towards income generating assets like dividend funds. Why?
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# ? Jun 23, 2016 01:52 |
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Subjunctive posted:Why? http://canadiancouchpotato.com/2013/10/30/making-smarter-asset-location-decisions/
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# ? Jun 23, 2016 02:15 |
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Guest2553 posted:If that's a swipe at me I'm not savvy enough to get it quote:I made my first RRSP contribution last week and used it to buy something today I think nf maybe thinks you bought some consumer good with the RRSP money, thinking you could just put it in, get the refund, take it out and then spend it. I did something like that once because I'm retarded. You probably meant that you bought some stock or ETF inside your RRSP. What did you buy?
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# ? Jun 23, 2016 02:21 |
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Ikantski posted:I think nf maybe thinks you bought some consumer good with the RRSP money, thinking you could just put it in, get the refund, take it out and then spend it. I did something like that once because I'm retarded. You probably meant that you bought some stock or ETF inside your RRSP. What did you buy? That makes sense. I got about 13k XEF, 10k VUN, and 7k VAB. It should trigger about 10k in refund next year, which will in turn be invested. Still not getting it In the meantime I'm standing by 'perfect is the enemy of good'.
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# ? Jun 23, 2016 02:37 |
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That says the opposite: quote:All the tax-inefficient bonds are now safely in your RRSP, while the US stocks are in your non-registered account, where the foreign withholding taxes on dividends are recoverable and you can benefit from tax-loss harvesting. The only mention of dividends says to put outside the RRSP, no? But if we're tossing around links instead of writing explanations, I offer http://www.theglobeandmail.com/globe-investor/investment-ideas/beware-of-these-three-rrsp-myths/article9235153/?service=mobile
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# ? Jun 23, 2016 03:29 |
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If I wanted to gamble on Britain staying in and there being a big rally tomorrow, what do you think would be the best + laziest way to bet on that? Maybe some Europe oriented ETF...? Any recommendations?
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# ? Jun 23, 2016 16:32 |
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Femtosecond posted:If I wanted to gamble on Britain staying in and there being a big rally tomorrow, what do you think would be the best + laziest way to bet on that? Maybe some Europe oriented ETF...? Any recommendations? http://www.williamhill.com/
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# ? Jun 23, 2016 17:03 |
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it's raining today and I don't want to go down to the horse races.
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# ? Jun 23, 2016 17:08 |
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Oh wait they've actually been taking Brexit bets.. hahah. Well at least in Britain. I don't see anything on this website.quote:Brexit Vote Already Has a Winner: The Gambling Industry
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# ? Jun 23, 2016 17:11 |
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I'm just half joking about the Brexit gamble. All of my investments are in US equities and I've been thinking that I should probably diversify and invest in other areas for months. The Brexit headlines this morning just reminded me of this.
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# ? Jun 23, 2016 17:59 |
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Femtosecond posted:I'm just half joking about the Brexit gamble. All of my investments are in US equities and I've been thinking that I should probably diversify and invest in other areas for months. The Brexit headlines this morning just reminded me of this. Vanguard has some good options for passive index investing abroad: VE: Developed Europe ETF VA: Developed Asia ETF VEE: Emerging Markets ETF MERs are all very reasonable (slightly higher than Canadian and US ETFs) - 0.2-0.3%.
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# ? Jun 23, 2016 20:10 |
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I asked myself if I should gamble on it as well but ultimately decided to stay the course with a portfolio of index-tracking ETFs. XEF is already like 20% UK based businesses anyways, and a vote of remain will probably lead to some sort of international rally anyways. In the opinion of this goon.
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# ? Jun 23, 2016 23:46 |
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Well I was so busy today that I didn't have the time to look into this at all before the market closed, so given how the brexit results are coming in, I guess I dodged a bullet lol. This will severely impact all the worlds' markets though, not just Europe.
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# ? Jun 24, 2016 04:42 |
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Don't panic when your euro/intl indexes tank goons
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# ? Jun 24, 2016 06:52 |
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So in theory tomorrow my bonds will be up and I should sell them to buy more XEF?
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# ? Jun 24, 2016 07:06 |
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If it's rebalancing time, sure. I'm going to bed with the expectation that I'll have lost a month's salary by the time I wake up at which point I'll shrug, enjoy my day off, and play with my toddler at the park.
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# ? Jun 24, 2016 07:16 |
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The only way you should be unhappy about this is if you are retired and liquidating assets in order to live. If you are young and saving, everything is on sale. This is a good thing.
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# ? Jun 24, 2016 15:24 |
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I didn't check any financial news until after the trading day ended. Down a whopping 2%, whee. I guess there's a lot of room for things to call further, sure, but at a time when all the headlines are making GBS threads out world-is-ending reports, am diversified portfolio seems to have done alright. Can't wait to see some of the resulting bad-with-money schadenfreude though
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# ? Jun 24, 2016 22:21 |
Kal Torak posted:The only way you should be unhappy about this is if you are retired and liquidating assets in order to live. But my Vancouver house prices! It's going up if I don't buy that crack house for 2 million it will be 3 million by next week!
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# ? Jun 24, 2016 22:32 |
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I somehow made money in one of my funds but everything else was down an average of 3%
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# ? Jun 24, 2016 23:12 |
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My VAB was up .8%. Sold half to buy more XEF. All in all I was down about 2.6% on the day. Mantle fucked around with this message at 00:07 on Jun 25, 2016 |
# ? Jun 25, 2016 00:02 |
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CIBC is running their free ETF trades promo again: https://www.investorsedge.cibc.com/ie/pdf/ETFoffer_2016_termsconditions_en.pdf Most of Vanguard ones are eligible, so it's a pretty good time to start a no-hassle passive portfolio with one of the majors.
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# ? Jun 25, 2016 06:52 |
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sbaldrick posted:I somehow made money in one of my funds but everything else was down an average of 3% Same here. Until this morning, anyway.
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# ? Jun 25, 2016 17:53 |
Yeah mine finally updated overnight and I'm down around 3.2%.
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# ? Jun 25, 2016 20:01 |
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Read through this whole thread, learned a lot, huge thanks to everyone posting in it. Both to the knowledgable folk who are sharing and to the newbies for asking my dumb questions for me. Someone linked some Vanguard Canada portfolio strategies a few pages back and I can almost see the eye roll accompanying this bit of copy: quote:Canadian investors have historically demonstrated a significant home bias when investing in stocks and bonds. I'm trying to decide on a portfolio allocation and I'm curious about how y'all decided on how many index funds to buy. The simplicity of index funds compared to a manually diversified portfolio is a big part of what brought me on board. That simplicity could extend all the way down to holding just two funds (one bonds, one equity), or even one (if you're all equity). But it seems like a lot of people end up holding four or more. Why? (It wouldn't surprise me to learn that it doesn't much matter, assuming you stick to an allocation and diligently rebalance, but I'm curious nonetheless.)
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# ? Jun 25, 2016 23:41 |
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Hold whatever you want that gives you the exposure and risk profile you want. For instance I agree and only hold VXC and VAB.
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# ? Jun 25, 2016 23:49 |
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I also only hold VXC and VAB.
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# ? Jun 26, 2016 03:51 |
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Sadly the time has come to stop adding to my investment accounts and save for the next house, which will probably take 2-3 years. I'm trying to figure out the best place to store the money until then. I am not sure if I'm going to sell my current place, or rent it out (I'm already renting out three rooms in it now as it is). If I knew that I was going to sell it, I could look into the possibility of putting it on the mortgage (at a measly 2.85%, but it's something). Or would the bank consider the equity in that house a down payment? Assuming the real estate market doesn't crash, of course. This is Halifax though - things are a little more stable here than other places. tl;dr - where to stuff money for down payment savings. Mortgage? Savings account? Money Market? (I don't even really know what the Money Market is, but I've heard of it) edit: For those who want to talk me out of buying, you should know that I'm not buying anything that doesn't have at least a basement rental apartment, or maybe even a duplex. Rick Rickshaw fucked around with this message at 17:27 on Jun 28, 2016 |
# ? Jun 28, 2016 17:11 |
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Jesus loving christ I just heard from a friend that they cashed out almost all their mutual funds and put them mostly into bonds "because of brexit". I'm hearing stories and "advice" like this more and more. "stocks are low, buy bonds" You should have bought those bonds before Brexit you idiots, you don't sell now, you are selling low, you missed the window now the best thing to do is wait for things to go back up. I tried to explain that the markets going up and down is normal, and unless they need this money now this little dip is just going to be a blip over the 30 more years or whatever that they're sitting on these funds for retirement. But nope "Market is down, gotta sell!!" I never understood when people would complain about "we HAD to cash out all our investments in 2008" or "our investments got wiped out". When people talk about "having" to cash out I assume they had some emergency and needed cash even if cashing out was at a loss, but nope, they just panic and cash out because they don't understand markets have ups and down. And when people say they "lost everything" I assumed it meant they had invested in poo poo that went out of business, but nope, they just panic sold in a really large downturn, or sometimes just were not diversified at all and were holding just a few specific stocks (specially where they work, hey if I own stocks in my own company it's like profit sharing!!!)
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# ? Jun 28, 2016 18:09 |
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Baronjutter posted:Jesus loving christ I just heard from a friend that they cashed out almost all their mutual funds and put them mostly into bonds "because of brexit". I'm hearing stories and "advice" like this more and more. "stocks are low, buy bonds" Our brains are wired to prefer doing something, rather than nothing, even if it's proven that doing nothing actually provides better long-term results. I think in many cases it's because people want to believe they're smart and special and can make a good decision based on a piece of information they receive.
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# ? Jun 28, 2016 19:32 |
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Losing something we had also affects us a lot differently than gaining something we didn't.
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# ? Jun 28, 2016 19:40 |
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Some people need a locked-in rrsp for that reason specifically
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# ? Jun 28, 2016 19:43 |
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"We can't afford the full vacation we planned this year, I just lost $40,000, we're going to have to cut back on spending" Like... I just, my brain can't understand. You didn't lose $40,000, your investment's value dropped that much but unless you were needing to sell that all right now it doesn't change anything. Your day to day or year to year spending has nothing to do with these investments. Unless you were planning on cashing out some of your funds to pay for your big euro trip, how is this effecting things? Are people insane and don't understand that investments are for the long term and aren't cash? These are the same people who will spend more on the same income because their house value went up. You can't spend that poo poo until you sell it! People seem to think they're as rich as their net-worth and spend accordingly.
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# ? Jun 28, 2016 20:02 |
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Baronjutter posted:People seem to think they're as rich as their net-worth and spend accordingly. To be fair, isn't "high net worth" a very common definition of "rich"?
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# ? Jun 28, 2016 20:07 |
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Subjunctive posted:To be fair, isn't "high net worth" a very common definition of "rich"? "Able to live off your net worth" is the proper wording here. If your investments have lost value and your income from it is reduced, then yes, you need to adjust. For most people investing, their income is effectively zero until they withdraw (i.e.: retire).
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# ? Jun 28, 2016 20:27 |
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# ? Jun 8, 2024 09:42 |
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Most people treat worth as income. Income is what determines how much you can spend, your worth is unrelated as you could have a million dollars and no income, or even invested that million would only give you a non-inflation protected comparable quality of life as someone making minimum wage at $30k/yr.
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# ? Jun 28, 2016 21:49 |