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Yeast Confection posted:Holy moly, how long does it take Questrade to process a pre-auth deposit request? I submitted it first of February. Funnily enough, I had the exact same situation in January where I had a monthly contribution set to be taken out the first of the month. It took me till March to finally get it in  I would really give them a call. It's not a long wait on the phone. If they tell you they're going to look into it, just cancel the transaction and start a new one at a later date. That's what worked for me at least...
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Mar 9, 2017 15:08
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Kal Torak posted:Different funds can hold different underlyings. You aren't comparing apples to apples. cowofwar posted:There exists a low MER comparable fund for any higher MER fund. I understand that the underlying investments in each fund are different, and thus will behave differently (i.e. a fund comprised mostly of banks versus a fund comprised of utilities and energy companies). I also understand that you can get the same fund managed different ways that result in different MERs. What I don't understand is why the yearly performance percentages are not a good way to compare the two. For example, if I had invested $10K in the first year in each of those funds I mentioned in my last post, I would have seen growth of $1147 and $1023 respectively, right? I know past performance is not an indicator of future returns, but with enough years of data it should give an idea of how the fund responds to certain market conditions. pokeyman posted:The general argument behind indexing is that whatever portfolio you end up with will, at best, equal market returns in the long term (decades). Given that, your best hope is to invest broadly in the market (lower volatility) at the cheapest possible cost (e-Series, among TD funds). This definitely makes sense, but I'm still looking for a way to look at past performance of high and low MER funds to see the proof that low MER is better. I feel like I might be misunderstanding how MER is applied to performance figures. If a 0.53% MER fund claims a 10% return in 2016, does that mean it was actually 10.53% and the 0.53 was deducted as MER?
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Mar 9, 2017 16:06
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Foodship9 posted:This definitely makes sense, but I'm still looking for a way to look at past performance of high and low MER funds to see the proof that low MER is better. I feel like I might be misunderstanding how MER is applied to performance figures. If a 0.53% MER fund claims a 10% return in 2016, does that mean it was actually 10.53% and the 0.53 was deducted as MER? The MER is built into the price. So if a cheap ETF and expensive mutual fund both post 10% returns, the assets in the ETF actually went up 10.15% and the assets in the managed fund went up 12.5% but both returned 10% because one kept 0.15% and the other kept 2.5%.
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Mar 9, 2017 16:15
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Looks like Tangerine has a lot of inactive chequing accounts. New fees. http://links.e.tangerine.ca/ctt?kn=9&ms=MjgxNzIxNzkS1&r=MTMyNjAwNTkyODA1S0&b=0&j=MTAwMTI1MTM1MgS2&mt=1&rt=0
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Mar 9, 2017 17:29
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Time to finally close some old accounts I guess. FYI you can't do it online, you have to call Tangerine to do it.
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Mar 9, 2017 17:40
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Foodship9 posted:I understand that the underlying investments in each fund are different, and thus will behave differently (i.e. a fund comprised mostly of banks versus a fund comprised of utilities and energy companies). I also understand that you can get the same fund managed different ways that result in different MERs. What I don't understand is why the yearly performance percentages are not a good way to compare the two. For example, if I had invested $10K in the first year in each of those funds I mentioned in my last post, I would have seen growth of $1147 and $1023 respectively, right? I know past performance is not an indicator of future returns, but with enough years of data it should give an idea of how the fund responds to certain market conditions. You really don't know what the future will hold. It's a gamble and the odds are against you.
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Mar 9, 2017 17:57
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yippee cahier posted:You really don't know what the future will hold. It's a gamble and the odds are against you. I know that any market investment has an associated risk. But let's say I've already done the risk assessment and find that I'm comfortable with funds that are X% exposed to the market. I can look at the past performance of multiple funds that are X% equity and compare the two against one another. I'm not looking for a prediction like "This fund is likely to make me $1000 dollars in a year" but rather "This fund is likely to make me more money (or lose me less money) than this other fund".
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Mar 9, 2017 21:04
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Foodship9 posted:"This fund is likely to make me more money (or lose me less money) than this other fund". "Based on previous jackpots, the Powerball is more likely to make me win more money than the 6/49."
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Mar 9, 2017 22:59
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Foodship9 posted:I know that any market investment has an associated risk. But let's say I've already done the risk assessment and find that I'm comfortable with funds that are X% exposed to the market. I can look at the past performance of multiple funds that are X% equity and compare the two against one another. I'm not looking for a prediction like "This fund is likely to make me $1000 dollars in a year" but rather "This fund is likely to make me more money (or lose me less money) than this other fund". Afraid not. http://finance.yahoo.com/news/mutual-fund-past-performance-scorecard-171510113.html quote:99.7% of the top-performing funds in 2012 failed to deliver top returns four years later. Still like your odds?
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Mar 10, 2017 00:04
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Foodship9 posted:I know that any market investment has an associated risk. But let's say I've already done the risk assessment and find that I'm comfortable with funds that are X% exposed to the market. I can look at the past performance of multiple funds that are X% equity and compare the two against one another. I'm not looking for a prediction like "This fund is likely to make me $1000 dollars in a year" but rather "This fund is likely to make me more money (or lose me less money) than this other fund". http://fortune.com/2016/05/11/warren-buffett-hedge-fund-bet/ If you feel strongly about some stocks by all means #YOLO on robin hood margin over @ /r/wallstreetbets
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Mar 10, 2017 02:12
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Cold on a Cob posted:Afraid not. Ok, I get it now. So if past performance has been proven to be not at all useful, how do you make an informed decision on what to invest in besides minimizing investment costs? If I open a TD e-series account, there are 16 funds to choose from. Should I just invest as broadly as possible or is there more I can do? (Thanks for being patient with me, goons)
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Mar 10, 2017 17:47
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http://canadiancouchpotato.com/wp-content/uploads/2015/01/CCP-Model-Portfolios-TD-e-Series-2016.pdf Pick your poison, or alter the ratios based on your risk/world view. Do you feel bullish on Canada? Invest in Canada. Do you feel President Cheeto Dust will boost the market? Invest in the US marketplace. Do you feel strongly that Canadian Real Estate will outpace the market, and that you can wiggle around primary residence rules with the CRA? Buy Canadian Real Estate. I'm 50% US / 35% INTL / 15% CAN
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Mar 10, 2017 18:06
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I'm making a RESP with TD Waterhouse, and trying to decide how to distribute the portfolio. Are the TD e-Series funds the way to go? Or does anyone have any experience with Vanguard Canada (https://www.vanguardcanada.ca/individual/etfs/etfs.htm)? I've been doing a lot of reading, and it seems like low MER is the way to go, but is 0.06% that much significantly different than 0.22% or 0.6% Also, what's the difference between a CAD hedged fund and not hedged? i.e., Which one goes up when the Canadian dollar goes up?
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Mar 17, 2017 19:53
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The Kestrel posted:I'm making a RESP with TD Waterhouse, and trying to decide how to distribute the portfolio. On an investment of $100000, 0.06 = $60 0.22 = $220 0.60 = $600 Per year. Whether that is a significant amount of money is an exercise to the reader.
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Mar 17, 2017 21:06
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Mantle posted:On an investment of $100000, Yes, well, this would be a yearly investment of $2500 + $500 grant. How much are the fees for purchasing etfs? Can you get a discount for making preauthorized purchases, or is just a flat rate?
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Mar 19, 2017 15:56
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The Kestrel posted:Yes, well, this would be a yearly investment of $2500 + $500 grant. How much are the fees for purchasing etfs? Can you get a discount for making preauthorized purchases, or is just a flat rate? https://www.td.com/ca/products-services/investing/td-direct-investing/commissions-fees/
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Mar 19, 2017 16:39
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The Kestrel posted:Yes, well, this would be a yearly investment of $2500 + $500 grant. How much are the fees for purchasing etfs? Can you get a discount for making preauthorized purchases, or is just a flat rate? I think TD is $10 per trade. If you're contributing annually to a typical couch potato portfolio that's $40 per year. Compare commission plus lower management fee versus no commission and slightly higher management fee and you have your answer. Honestly the bigger danger here is analysis paralysis as you try to minmax a couple dollars. You'll do well with either approach you've outlined. If you need some random internet poster to break the tie, I say go e-Series with automatic contributions and forget about it until you rebalance in a couple years.
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Mar 19, 2017 16:42
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pokeyman posted:I think TD is $10 per trade. If you're contributing annually to a typical couch potato portfolio that's $40 per year. Compare commission plus lower management fee versus no commission and slightly higher management fee and you have your answer. $10 a trade is quite a lot, at least for the initial investment, especially if I wanted to do monthly contributions for dollar cost averaging. For $3000, the difference in MER fees would be $16 per year or so. I'll start with the e-series, then, and then re-evaluate in a couple of years once the value has grown slightly. Thanks, Random Internet Poster! 
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Mar 19, 2017 18:25
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The Kestrel posted:Also, what's the difference between a CAD hedged fund and not hedged? i.e., Which one goes up when the Canadian dollar goes up? Hedging comes up in this thread every few months. I always refer back to previous posts because I'm lazy: https://forums.somethingawful.com/showthread.php?threadid=3569987&pagenumber=111&perpage=40#post468517368
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Mar 20, 2017 11:58
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Vatek posted:On top of that, low-volatility options that maintain liquidity are gonna be bond ETFs which are terrible choices to hold in a taxable account. Oh. That's a very good point. Right now I have some bond ETFs as part of my portfolio, held in my TFSA, but I guess they might be better put in a regular trading account. That said, I've only just started this, and have a ton of contribution room, and having everything in the TFSA has made taxes really easy. So I guess I can keep them there for now, and start cycling them out for higher yield investments when I actually start approaching my contribution limit.
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Mar 20, 2017 12:12
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The Kestrel posted:$10 a trade is quite a lot, at least for the initial investment, especially if I wanted to do monthly contributions for dollar cost averaging. For $3000, the difference in MER fees would be $16 per year or so. I'll start with the e-series, then, and then re-evaluate in a couple of years once the value has grown slightly. Questrade has free purchases. Worked out well for dipping my toes.
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Mar 20, 2017 16:55
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Lead out in cuffs posted:Oh. That's a very good point. Right now I have some bond ETFs as part of my portfolio, held in my TFSA, but I guess they might be better put in a regular trading account. The TFSA isn't a taxable account. You do not want to hold bonds or bond ETFs in a regular taxable account because they are taxed at a much higher rate since they do not qualify as capital gains.
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Mar 20, 2017 17:27
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Vatek posted:You do not want to hold bonds or bond ETFs in a regular taxable account because they are taxed at a much higher rate since they do not qualify as capital gains. Whoa whoa whoa. What's all this now? Can you explain further?
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Mar 20, 2017 19:48
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I would also like to know more.
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Mar 20, 2017 20:10
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Returns from funds (mutual or etf) take on the characteristics of the underlying security. You will get a statement at the end of the year stating how much of your return is interest vs dividends vs cap gains. You can get cap gains from bonds but much of your return from a bond fund will be interest which is taxed less favourably on balance than equity so you're best to preferentially put them in a tax deferred account ahead of equity investments.
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Mar 20, 2017 20:56
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Kalenn Istarion posted:Returns from funds (mutual or etf) take on the characteristics of the underlying security. You will get a statement at the end of the year stating how much of your return is interest vs dividends vs cap gains. You can get cap gains from bonds but much of your return from a bond fund will be interest which is taxed less favourably on balance than equity so you're best to preferentially put them in a tax deferred account ahead of equity investments. It's this. Dividend payments that you receive from a bond fund (which are often monthly) are not the same as dividends from something like an index ETF. Bond fund dividend payments are mostly comprised of a portion of the coupon payments (or interest) from the underlying bonds held by the fund. That part of the dividend is considered interest income and will be taxed at your marginal tax rate (ie the tax rate you pay on income) rather than the capital gains rate. There's also some things going on in the background that have to do with bond ETFs selling their underlying bonds at a discount or a premium but the general gist of things is that bond-related investments are some of the worst in terms of tax efficiency and should only be held in tax-advantaged accounts like a TFSA or RRSP. Vatek fucked around with this message at 21:18 on Mar 20, 2017 |
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Mar 20, 2017 21:10
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Counterpoint: In low rate environments, you might come out ahead paying tax on bond interest in order to shelter the larger gain. That said, I hold bonds in registered.
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Mar 20, 2017 21:45
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Guest2553 posted:Counterpoint: In low rate environments, you might come out ahead paying tax on bond interest in order to shelter the larger gain. How would that work, with rates at a historic low?
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Mar 20, 2017 22:19
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Even though tax rate as a percentage is higher for interest income, the interest income itself is very low. Paying full marginal rate on the 2% bond yield may be a better deal than capital gains rate on a much larger amount. It super depends on personal circumstances but is something worth thinking about once all registered accounts are maxed.
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Mar 21, 2017 01:11
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Guest2553 posted:Even though tax rate as a percentage is higher for interest income, the interest income itself is very low. Paying full marginal rate on the 2% bond yield may be a better deal than capital gains rate on a much larger amount. It super depends on personal circumstances but is something worth thinking about once all registered accounts are maxed. Except it's much more likely to be a capital loss on account of bond price/yield inversion and the fact that rates can't really go lower. This is a bad idea, IMO.
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Mar 21, 2017 01:45
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Guest2553 posted:Even though tax rate as a percentage is higher for interest income, the interest income itself is very low. Paying full marginal rate on the 2% bond yield may be a better deal than capital gains rate on a much larger amount. It super depends on personal circumstances but is something worth thinking about once all registered accounts are maxed. 'You make less money so paying a higher tax rate is ok' is a bad argument
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Mar 21, 2017 02:45
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I had to take a deep look to find out where that earworm got planted and traced it back to this article. PWL capital did a quick analysis and found that the actual effect was grossly overstated, but may be valid for some edge cases like high earning dividend investors. I guess that article caught me in my formative years because I always took it as proofs of holy writ. Father forgive me.
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Mar 22, 2017 01:10
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So......should I sell my VAB holding in my taxable account or not?
Rick Rickshaw fucked around with this message at 01:32 on Mar 22, 2017 |
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Mar 22, 2017 01:14
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Rick Rickshaw posted:So......should I sell my VAB holding in my taxable account or not? If you have room in your TFSA or RRSP for it, I would move it. Vatek fucked around with this message at 03:17 on Mar 22, 2017 |
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Mar 22, 2017 02:37
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Vatek posted:If you have room in your TFSA or RRSP for it, I would move it. Wouldn't have a taxable account if I did! 
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Mar 22, 2017 22:08
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yippee cahier posted:Questrade has free purchases. Worked out well for dipping my toes. What's the standard commission for selling, though?
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Mar 25, 2017 18:50
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Some percentage, min $5, max $10. In my head I just assume it'll be $10.
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Mar 25, 2017 19:17
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I'm looking into investing internationally in a couple of emerging market funds. Anyone here have any experience with it and have good resources on what kind of accounts/anything else that needs to be done for tax purposes? I may have to make payments in the local currency as well so how do you go about taking the smallest possible hit on currency conversions?
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Mar 25, 2017 19:59
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pokeyman posted:Some percentage, min $5, max $10. Be careful with that assumption. They pass on ECN and other fees to you so it can end up quite a bit more.
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Mar 25, 2017 21:09
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spoof posted:Be careful with that assumption. They pass on ECN and other fees to you so it can end up quite a bit more. Good point! I guess I shouldn't say there's a maximum charge for executing a sell order.
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Mar 25, 2017 22:05
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