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pokeyman posted:
I really didn't follow at all the point here about "hedging costs of local consumption." But yea seems like the justifications are mostly: * Dividends are preferentially taxed (no 15% tax on withholding from the USA Gov) * mildly lower fees on ETFs * FOMO insurance in case we get a new Nortel. * historical study says so I'm not normally one to doubt the experts but my gut tells me that it doesn't add up and I should just put 100% of my money into the USA funds anyway lol. I think the strongest point is around dividends and taxes, but dividends suck anyway. It could make sense to more significantly weight Canada if you're more retirement age and pivoting more into dividends.
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Mar 16, 2024 01:10
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| # ¿ May 21, 2024 07:01 |
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quote:U.S. interest and dividend income earned in a Canadian registered account lol whoops uhhh it probably would have been better for me to move my S&P500 ETF RRSP holdings to a USD account back in 2022 when the dollar was at like .82 instead of .74...
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Mar 16, 2024 04:30
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pokeyman posted:What is your gut basing 100% USA on if not historical data? And "dividends suck", what? Aiming just for dividends doesn't usually make much sense because you're needlessly concentrating your investment. If you're not doing that then what do you care whether your return comes in dividends or buybacks or appreciation? Oh yea I was just knee jerk dismissing the historical data cited in the video because it seemed overly broad in scope to me, but yea like if there is like a real series of studies that point to the same thing, and especially if we're looking at narrower timelines well then I'm listening. I'm not like gonna deny the science if it's there, but there's just so many people trying to sell you on something in this space that I'm knee jerk skeptical to anything. What I was getting at by "dividends suck" is what you said there like the stereotypical dividend hog investor that has a specifically dividend oriented portfolio, and these portfolios seem to often do much more poorly than others. So yeah don't do that (unless you're retiring). But yea as the video says, if you're investing in like the S&P500 there's a lot of dividend companies in there (eg. Apple) and you are going to get dinged on withholding tax if you don't have the right ETF in the right instrument (as I posted above with my own example... whoops) and that will be some sort of drain on return. Now this is hypothetically where having more beneficially taxed Canadian dividend stocks could help in reducing that drain on return. I think it would be interesting to actually look at a real numbers concrete example of this because every time I see someone mention this it's more handwavey hypothetical than I'd like. (Now that I've established that whoops I am paying taxes I didn't think I was paying on my S&P500 ETF i'm going to have a look at see how much it actually is.) ex-Canada ex-USA actually does make sense and something I do have. Remarkable thing in that video was the part that said how the 16 Danish companies out performed everyone lol. But yea it makes sense to weight it. The one point from the video above about concerns around getting money out, it's not really a problem if you limit what you look at to our allies in Europe in particular. Makes me wonder if people who invested ex-Canada ex-USA got dinged at all by Russia problems. Is Russia part of the emerging market ETFs or the European market ETFs?
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Mar 16, 2024 21:02
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Is there an ETF for like "these companies don't do dividends just stock buybacks" as that would be the thing you'd want for a TFSA, setting aside the whole fact that you will narrowed your portfolio in a weird way by doing this and could be sub optimal for that reason. Casual google reveals nothing. Edit There's this but i dunno if it excludes dividend stocks https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=PKW Lol Apple is one of the biggest buy backers and does dividends too. Femtosecond fucked around with this message at 21:21 on Mar 16, 2024 |
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Mar 16, 2024 21:17
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tragic_ethos posted:Eh, I'm still generally of the mind that worrying about dividend withholding for US stuff is pretty marginal in terms of total gains. The current average yield of S&P 500 tickers is 1.84% per Google, it sucks to be sub-optimal obviously, but likely not worth much mental expense if we're talking a 0.2 to 0.3% loss each year (ie. taking a 30% withholding hit on US dividends rather than 15%). That's always been my opinion too. The thought just popped into my head as I was typing the last post though. It would be interesting to see what it would look like as a thought experiment. I do expect it would be such a bespoke and particular group of companies that that aspect would dominate the trend on returns.
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Mar 16, 2024 21:50
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pokeyman posted:Skepticism is definitely good when it comes to personal finances. Good links thx. edit: New Page. Pls do your patriotic duty and buy Canadian stocks.
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Mar 16, 2024 21:54
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| # ¿ May 21, 2024 07:01 |
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I was wondering about this... like what happens if you mess up and accidentally over contribute but immediately realize it. Is everything ok if you quickly withdraw? lol You'd think maybe, but then what about if there's a few months between when you over contribute and when you find out. I guess you're penalized by paying interest every month so are you only penalized the months you're over the limit? I guess it's worse to over contribute in January and do nothing all year than it is to almost over contribute in January, do nothing all year, and then over contribute just over the line in Dec ?
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Mar 22, 2024 04:29
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