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tuyop posted:Someone else should reply to this MER talk with that blog post that shows the maths behind how much even 1% greater fees cost you. Canadian Couch Potato details the MERs of their portfolios. The e-series one I linked is 0.44% per year. Even the very cheap Tangerine mutual fund is more than twice as expensive. These are not insignificant costs even though they look like small numbers. I like this interactive thing from Vanguard. https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost And before you ask, 6% is a reasonable rate of return if you include a small bond component and look at everything in inflation adjusted (real) dollars over the long term.
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Sep 9, 2014 03:25
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Baronjutter posted:family members, hot investments that are GUARANTEED Trust me when I say that everyone who is doing passive indexing thinks those actively managed funds with advisors are 'hot investments' (not quite on the same level as idiot family members and penny stocks and investing in sketchy startups). Oh your fund has been doing terribly? Let's move you into a fund that happened to guess right since the one I put you in guessed wrong, (never mind the fact that you're probably going to lose out because eventually most strategies 'return to the mean' over the long term), so you're selling low and buying high by switching! This is a lovely link to corroborate the above: http://www.businessinsider.com/forgetful-investors-performed-best-2014-9 http://etfdb.com/etf-education/5-charts-to-put-mutual-fund-expenses-in-perspective/ Another nice link demonstrating fees. This is an american site, where MERs don't really go above 1.5%. Canada's 2.5-3% average MER is one of the highest in the world, it's highway robbery.
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Sep 9, 2014 03:37
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Guest2553 posted:Check out the calculator. It's not Dr Internet talking, it's straight up math dawg! One hundred percent agree, you should at least read an intro book before beginning on this journey. Millionaire Teacher, Four Pillars of Investing are both fantastic and are designed for the average reader. It's not rocket science at all, and they aren't that long. quote:Questrade offers a 'demo' where you can manage a pretend portfolio to get used to the trading system. Even if you're planning to go with TD e-series, making a few pretend trades might help you feel better with what you're doing. It's a lot easier to manage accounts with TD and you don't have to worry about accidentally wiring a chunk of money to the wrong account number, even if the MERs are slightly higher (but the 2 bucks a year you'll pay per 10k is a lot less than the current situation I never did this, but you have this thread to help you and you can take it once step at a time. You don't need to open an account, transfer all your investments, and come up with a complete portfolio in a day. You could fund an account with $1000-5000, try buying an index fund (ETF if brokerage, or TD e-series fund if a TD brokerage or mutual fund account) and see how it is.
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Sep 9, 2014 03:43
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If you're familiar with the math it should piss you off that the dude has almost certainly skimmed thousands of your dollars for doing sweet nothing at all.
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100% agree with that advice above in doing it slowly- it totally will work. This is how I got my father on board. After half a year of managing some extra investments in a nonregistered account together with him, and him following my index investments on google finance for a while, reading four pillars etc., we switched him over fully from his horrible Mackenzie Financial 2.70% MER funds to ETFs at Questrade (Vanguard, iShares) and he's a fervent follower now and talks about it to his buddies and tries to get other family members to ask me for help. The other thing is that most Canadian mutual funds are actually SUPER concentrated in financials (banks) because Canada just isn't all that diversified. Most of them are something like 30-40% Canadian equity, and 30-40% bonds at the very least, leaving very little actual international investments..
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Sep 9, 2014 06:55
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Baronjutter posted:So should I cancel this waterhouse appointment and try to... ask harder at the TD bank? I'm getting :alarm:conflicting info:alarm: which is paralyzing me. These are the sort of mixed signals and "don't do this or fees will kill you" "no do this its better!" stuff that gets me really flustered. Either go with a mutual fund account converted into an e-series account, or go with ETFs at Questrade or something. Don't use TD-W with a small account.
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Sep 10, 2014 02:58
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Personally, I have 15% of the equity side of my portfolio in Canada, but I don't have a large nonregistered account- in fact, the only thing I can't fit in my TFSA/RRSP is some of my holdings of VCN.
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Sep 25, 2014 06:14
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Guest2553 posted:Something I ran into this month - Questrade doesn't accept transfers unless the name on the recipient account matches the name of the donor account. Apparently it's some sort of anti fraud measure, or at least that's what they're telling me. I've had a few grand in limbo the past couple weeks trying to make a spousal TFSA contribution, and the bank is saying it'll be another 2-3 weeks to investigate and reverse the transfer. That sucks. I use questrade as an intermediary to transfer money for free from my crappy bank accounts to the glory that is Tangerine via bill-pays. (Interac E-transfers cost money and I'm cheap!) (My direct deposit has been going to other banks for their sign up promos for the last few months now)
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Oct 11, 2014 02:42
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Guest2553 posted:It's a new thing according to them, which is why I never had a problem before. Not sure how I'm gonna get around it yet since the bank I use has no local branches within 1500km of me. It's not too new, actually. My dad had this issue when he gave my brother some money to invest in his TFSA last december.
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Oct 11, 2014 17:00
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Can anyone detail the process of closing out a bank account? I have a Scotiabank account I opened to obtain a promo reward, switched direct deposit and so on into it. I've since obtained the reward and now my direct deposit is going elsewhere, but I have about 5k in the account still. I've passed the 90 days during which I would have to pay for early account closure. If I walk into a branch and ask to close the account, will they draw up a cheque for me, which I can deposit wherever I please? Or would they charge for that, or can I get them to honor a form to deposit everything upon closing in another account? My direct deposit is actually going to CIBC right now for that $400 promo they have going, so I'll need to do this for CIBC in a few months as well . I'm a Tangerine loyalist.
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Oct 13, 2014 05:07
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Grouco posted:I used to have a BMO chequing account that I closed after switching to Tangerine. I just transferred the funds to my Tangerine account by writing myself a cheque (you could just do a bill pay or an e-transfer as well), and left $20 in the account. Then I walked into the branch, said I wanted to close my account, and they made me sign a form and gave me cash. They'll probably try to charge you for a bank draft or certified cheque. I'm a cheap bastard and I'll get charged $12.95 for the monthly fee if I dip below the min balance of $3000 and I was hoping to be able to do it free- any ideas?
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Oct 13, 2014 06:12
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Grouco posted:Yes, I was worried about that too-- my BMO account had the fee kick in at anything under $1000, but it was only applied at the end of the month, and they didn't give me any hassle at the branch. Oh awesome. I'll walk into a branch, confirm that with them, then billpay it to my brokerage account (and then withdraw it with a free EFT to my Tangerine) and close the account 5 minutes later.
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Oct 13, 2014 08:03
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blah_blah posted:$5000 minimum is not really ridiculous but to each their own. No one in their right mind would pay the $30 fee. It's not, but if you throw that $5k into any broad market index fund, it has a higher return than $30/month (long term obviously), so why bother?
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Apr 30, 2015 05:20
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blah_blah posted:7% on 5k is $350 so that's not even true assuming no expenses. I keep a completely liquid emergency fund of much more than $5k anyways so there's effectively no opportunity cost. A better comparison is the 1 or 2% you'd make on a 'high interest savings account' at a credit union or something like PC Financial. Still comes out ahead, if you're only comparing the min balance to the fees for not maintaining it. Equity returns going forward are estimated to be approximately 7% in real terms, or 9% pre-inflation. You may hold an emergency fund more than 5k, yes, but in my experience, for every seriously disciplined saver I know, they don't even count that minimum balance as part of the emergency fund, so comparing it to investments directly is a fair comparison.
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Apr 30, 2015 06:01
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The Butcher posted:What are the thread's general thoughts on hedged vs. non-hedged US index funds. Hedge has a drag on performance. Also, let's frame this question differently. If you're confident the CAD has bottomed out, why not stay with VUN, and then do some FX trading, which is a similar strategy? (don't do this)
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May 2, 2015 20:40
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Lexicon posted:All cards work like this, as far as I'm aware. They're not going to issue you a cent every time you spend a dollar. Yeah. There are some that don't and instead mail you a cheque every year on a specific date. But I'd say this is much better.
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May 25, 2015 05:04
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Kal Torak posted:It's not tax-free. It's tax deferred as you will be taxed when you pull the money back out. And in fact, you are taxed on the full amount so you would be paying tax on the full capital gain and not 50% of it. Technically yes you are "losing" capital gains, but in practice, it doesn't work that way at all! See here for an explanation. http://www.michaeljamesonmoney.com/2014/03/debunking-rrsp-myths-with-pictures.html RRSPs are a great tool. There is almost no reason to avoid them, even though yes the TFSA is generally easier and better to use.
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Nov 4, 2015 22:43
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cowofwar posted:Bah, another wave of invites for the Tangerine mastercard went out today but I didn't get one. I nabbed an invite yesterday. $14000 limit, which is interestingly high for me. Pretty sure you referred me to ING back in the day actually.
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Nov 13, 2015 23:15
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cowofwar posted:It would be $1000 for those who contributed the full $10,000 in 2015. I'm thinking this as well. Oh well, I actually should back-contribute to my pension for some non-contributory time before I had a permanent position. Plus max out that RRSP finally. I'm not sure if I should hold off on taking the tax credit, though, since I'm only making $58k/yr right now.
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Nov 14, 2015 21:11
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Shaky Premise posted:Alright, that's food for thought. I'll do some more reading. Your reasoning is contrary to your initial plan. Investing in the world's markets on aggregate isn't gambling. Investing in one company is...
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Apr 8, 2016 16:37
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I deposit into my Questrade brokerage account (via online banking billpay) and then withdraw to the other bank account.
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May 3, 2016 01:41
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Studies have shown (I don't want to find them, but it was either CCP or Justin Bender, I think) that rebalancing every year on the dot, or every two on the dot, are the best times to rebalance in terms of long term return (using a retrospective analysis.) I just rebalance with distributions and contributions and then do it every two years.
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Jan 25, 2017 22:22
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Vasler posted:Okay well, I looked it up and I was wrong - the MER of the fund I'm in with Credential is 2.35%. It's making money but it would be performing quite a bit better if I knocked 2% off the MER. Anecdotally, my dad's investments were with CAM and we discussed and he decided to sell early and pay a fee because losing 1% for selling too early was better than waiting 2 years to sell because of the huge fees associated with these investments. It's been about 5 years, and he's super happy with the couch potato investment style now.
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Feb 26, 2020 17:17
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