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The 4% rule is based on a retirement period of 25 years using a portfolio with a 50/50 S&P500/bonds allocation. It begins to fail if you are considering longer retirement periods or start adding mutual fund fees into that equation (don't use high fee funds, ever). It also goes without saying that just because the 4% rule has held for the past 50 rolling 25 year periods in the US (changes for other countries also) doesn't mean it will continue to hold into the future. In short, I probably wouldn't use it as a hard and fast rule and I'm personally trying to aim for more to be safe.
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Apr 6, 2021 06:15
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One way to be conservative is aim for 4% to be your baristafire number, i.e. you just need to pick up a few hours here or there or make up some fun income in order to make it safe.
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Apr 6, 2021 06:22
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The 4% rule guy thinks it could be the 4.5% rule on https://rationalreminder.ca/podcast/135, for what it's worth. It's a good chat about when the 4% rule is and isn't appropriate. There's a transcript there too if audio isn't your preferred format.
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Apr 6, 2021 07:01
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pokeyman posted:The 4% rule guy thinks it could be the 4.5% rule on https://rationalreminder.ca/podcast/135, for what it's worth. It's a good chat about when the 4% rule is and isn't appropriate. There's a transcript there too if audio isn't your preferred format. I think we're at the point where there's not a single Canadian investing topic that hasn't been covered in detail by one of the PWL crew - whether Ben, Justin, or Dan.
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Apr 6, 2021 18:34
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Nofeed posted:I think we're at the point where there's not a single Canadian investing topic that hasn't been covered in detail by one of the PWL crew - whether Ben, Justin, or Dan. No kidding. Partly due to how prolific they all are, and partly because this stuff really doesn't change all that quickly. At least they tend to agree with one another.
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Apr 6, 2021 20:41
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pokeyman posted:No kidding. Partly due to how prolific they all are, and partly because this stuff really doesn't change all that quickly. At least they tend to agree with one another. As an outsider, I've kind of felt that any decent financial advisor has about 5 or 6 portfolios (potentially handed down from above) that they apply to absolutely everybody except maybe a handful of clients whose portfolio size (& thus fees) and circumstances justify something a little more customized. And still probably nobody wants anything to do with you before you have a million or so in investable assets ... unless you're obviously going to be there soon. Anyway, what I mean to say is "they have a lot of spare time to either golf (find new clients?) or write things up"
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Apr 6, 2021 20:47
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You're probably not wrong. I think PWL especially has made a point to encourage their people to make/go on podcasts, write stuff up, and generally share with others as a hiring and marketing strategy. They'd also argue that their value is not so much the mechanics of running a portfolio, but even the other value is probably a lot of waiting for the phone to ring. Might as well do something in the meantime. Kinda cracks me up when the Rational Reminder crew are dumbfounded that anyone would want to retire from their job. Maybe some other people, uh, don't have as good a job as they do?
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Apr 6, 2021 20:56
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pokeyman posted:You're probably not wrong. I think PWL especially has made a point to encourage their people to make/go on podcasts, write stuff up, and generally share with others as a hiring and marketing strategy. This is called Content Marketing. Ben Felix is a good example but think e.g. iFixIt. They produce content that is valuable on its own and give it away freely in hopes that you will buy parts & tools from them. I once worked on Content Marketing Automation tools at a startup. It sounds like a total bullshit phrase but when you explain it like, "give people useful stuff for free and they'll like you" it's a wonder anyone thinks it's revolutionary.
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Apr 6, 2021 21:03
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Interesting chart of the day. https://twitter.com/TimmerFidelity/status/1379534626914365440
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Apr 6, 2021 22:55
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earlyretirementnow.com's safe withdrawal series did a bunch of quantitative analyses on the subject that I found very illuminating even as a non-math guy. There are thirtysome chapters last I looked, some of which are US-specific but are otherwise broadly applicable. TLDR is that for longer horizons a higher equity percentage is needed; 3.25-3.5% is a safe withdrawal rate even if you're hit by negative sequencing; and cash buffers can be useful in riding out downturns but the opportunity cost isn't always worth it.
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Apr 7, 2021 01:03
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Hey all, not sure if this is the right thread - but looking for an answer to something a bit odd in our mortgage. We are looking to renew our mortgage, and the company we are currently with quoted us... 2 yr fixed : 3.2% 3 yr fixed : 3.65% 4 yr fixed : 4.24% 58 month fixed : 2.09% 5 yr fixed : 4.790% I am a bit confused as to the large difference between a 5 year, versus the 58 month. Could there be a reason as to why the difference? Could it be a typo, or some odd selling point?
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Apr 10, 2021 01:06
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Might be a promo of some sort. Still nothing that impressive - Tangerine has 1.35% variable for 5-year variable and Simplii has 1.45% with $3000 cashback on the same timeline.
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Apr 10, 2021 01:46
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EQ Bank gave me 1.79% on a 5-year fixed earlier this week
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Apr 10, 2021 02:50
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I just got 1.7 fixed from BMO. With a 2k bonus.
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Apr 10, 2021 18:21
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I'm in the final stages of getting at 1.79% refinance from HSBC, so you should definitely shop around those numbers if it's just a renew.
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Apr 10, 2021 23:11
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https://twitter.com/JohnPasalis/status/1381241520771186694?s=20 https://twitter.com/JohnPasalis/status/1381241522927108100?s=20 https://twitter.com/JohnPasalis/status/1381241524697100296?s=20 
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Apr 11, 2021 19:09
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Guigui posted:Hey all, not sure if this is the right thread - but looking for an answer to something a bit odd in our mortgage. I'd say it's some sort of promo as the others have mentioned. I'd still say get in touch with a broker, rates are almost all under 2% right now.
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Apr 11, 2021 22:31
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I have a dumb question: I bought my place 5 years ago, just processing the renewal. My original amortization was 25 years, but now 5 years later it's shown on my renewal docs as 17 years and 4 months. Why the discrepancy there? Something something biweekly payments vs monthly?
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Apr 12, 2021 03:05
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Yes, it's like a lava lamp.
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PittTheElder posted:I have a dumb question: I bought my place 5 years ago, just processing the renewal. My original amortization was 25 years, but now 5 years later it's shown on my renewal docs as 17 years and 4 months. Why the discrepancy there? Something something biweekly payments vs monthly? Biweekly would do that, yes.
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Apr 12, 2021 03:39
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You're, uh, richer than you think.
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Apr 12, 2021 03:46
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Cold on a Cob posted:https://twitter.com/JohnPasalis/status/1381241520771186694?s=20 This shouldn't surprise anyone. It's a variant of the trick Maggie Thatcher pulled with allowing people to buy out their own council homes (public housing). Overnight you've created a giant tranche of wannabe landed gentry who will happily get on board with your policies as long as they benefit. The current housing situation is no different. Anyone who's jumped on the housing ladder has a personal vested interest in ensuring that their home appreciates in value. It is simultaneously their home, their investment and their retirement policy all in one. In some cases it represents the sum of all of their accumulated generational wealth which will pass onto the next generation. If housing tanked to the point where a single family home in Richmond Hill was worth 500k again you'd see blood on the streets. Whatever government made that happen would get wiped out in an electoral landslide in the next election. There's no easy way to rip this bandaid off. Too many people got hooked on the drug and with that level of buy-in you have all you need to feed that foreign investment cadre while juicing the economic growth numbers for a bare minimum of effort.
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Apr 12, 2021 04:37
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EQ Bank announced their savings rates are going down again. 1.50% --> 1.25% Got this email in my inbox:quote:Hi RuBisCO,
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Apr 14, 2021 02:04
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Canadian Tire Bank still top of the table, I think that's been a pretty decent streak. I went back to the OP to see if https://www.highinterestsavings.ca/chart/ was linked there (it isn't and it probably should be), and on page one is a post from 2013 about Questrade's long-term viability. I wonder if they'll ever shake the vague sense that they're gonna get gobbled up "soon". Also from page one is Lexicon intentionally not saving anything in their RRSP. I dunno if you still read the thread, but if you do, have you stuck to that plan?
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Apr 14, 2021 02:28
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The "Crypto Lol" portfolio from the 2020 dip has now gained $936,000 in one year, from the initial $96k they put in. So our goon friend is officially a millionaire if they didn't cash out yet.
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Apr 14, 2021 02:35
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Amazing.
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Apr 14, 2021 03:53
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pokeyman posted:Canadian Tire Bank still top of the table, I think that's been a pretty decent streak. I have not. Huge change in circumstances since then. I now have a regular jobby-job and it’s optimal for me to contribute.
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Apr 14, 2021 04:50
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Questrade is now also getting into the mortgage game, so it might just implode for different reasons if the RE market goes south.
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Apr 14, 2021 06:09
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Rime posted:The "Crypto Lol" portfolio from the 2020 dip has now gained $936,000 in one year, from the initial $96k they put in. So our goon friend is officially a millionaire if they didn't cash out yet. I chose to believe 
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Apr 14, 2021 06:23
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Lexicon posted:I have not. Huge change in circumstances since then. I now have a regular jobby-job and it’s optimal for me to contribute. Right on. The old post reminded me of a discussion with an American colleague who doesn't contribute to their 401.k. I was convinced they would come out slightly ahead (no match, but tax deferment likely overcame the fees), they were not. But I'm always curious about situations that go against the common wisdom. iv46vi posted:Questrade is now also getting into the mortgage game, so it might just implode for different reasons if the RE market goes south. They've never struck me as a particularly… tasteful? company. Which is maybe a weird thing to say, but it wouldn't be out of character for them to make some odd decisions. I'm not worried about them disappearing tomorrow or anything, they're just on permanent side-eye.
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Apr 14, 2021 06:56
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I'm fixing to make a contribution in kind from an unregistered account to my registered accounts now that I know my contribution limits. Am I right in my understanding that these are the risks? 1. Price fluctuation while the trade settles leading to over or under contribution. I have about 1% liquid in the registered accounts so I was thinking if I over contribute I'll just withdraw the amount of dollars I over contributed by the next day. On the other side, I expect to under contribute a bit since it won't perfectly divide by the share price, then top it up with liquid. 2. The transfer still counts as a taxable effect for capital gains purposes, needing to calculate and submit the ACB next year. So, compared to selling and buying, the contribution in kind only saves the commission fees.
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Apr 15, 2021 16:03
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How much money are we talking about here? If it's like $50k in kind then it might be worth futzing around with transfer, but if we're talking $10k I would just transfer cash from a line of credit and pay it off over 6 months or whatever to avoid the hassle you're describing. Also your plan doesn't mention what kind of registered account. This matters because the consequences of your plan to withdraw differ depending on what it is. Look in to the $2000 RRSP over contribution rule to see if it is relevant to your situation.
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Apr 15, 2021 16:54
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Both TFSA and RRSP. The line of credit is a good idea, and I also think I have a promo rate available. I'll look into that, thanks!
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Apr 15, 2021 16:57
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Edit: nvm, your accounts aren’t non registered
qhat fucked around with this message at 17:31 on Apr 15, 2021 |
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Apr 15, 2021 17:23
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Hi all, Apologies in advance for not knowing what I'm talking about. I'm trying to figure out my tax situation and I've gotten a few conflicting pieces of info so I was wondering if anyone had ideas here:
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Apr 16, 2021 03:15
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https://www.canada.ca/en/revenue-ag...a.html#txblgtns It sounds to me like you provided services in Canada and are subject to the Part 1 tax. Depending on the kind of work though, maybe an accountant could reasonably claim you didn't provide services 'in Canada'. I think you'd want expert advice on this if you want to a) not pay tax and b) limit your liability.
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Apr 16, 2021 04:10
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Rime posted:The "Crypto Lol" portfolio from the 2020 dip has now gained $936,000 in one year, from the initial $96k they put in. So our goon friend is officially a millionaire if they didn't cash out yet. If that were me, I'd be on pins and needles and probably would have cashed out ages ago. pokeyman posted:Canadian Tire Bank still top of the table, I think that's been a pretty decent streak. Who's next best after them?
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Apr 17, 2021 16:15
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slidebite posted:I loathe anything Canadian tire. Neo Financial. (Whatever that is.)
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Apr 17, 2021 18:13
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Pivo posted:https://www.canada.ca/en/revenue-ag...a.html#txblgtns Thanks! I talked to CRA and they walked me through what I should do. Basically I will pay income tax but there are several credits/business expense write offs I can take advantage of and some schedules I need to include as a non-resident.
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Apr 17, 2021 21:48
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pokeyman posted:Neo Financial. lol.. no kidding. Thanks though!
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Apr 18, 2021 05:33
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I can't recall the name but isn't there an online banking service out there that offers you to tie your checking account to a visa/mastercard? Its not ties to any of the major banks and has a "startup" type name but google is failing me.
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Apr 18, 2021 15:14
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