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Are there any good Canadian focused passive investing books? I'm curious about the tax implications of certain things when you're in non tax advantaged accounts and how to distribute assets best between tax advantaged and non tax advantaged funds
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Jul 16, 2019 06:54
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| # ¿ May 13, 2024 22:26 |
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With Bond yields so low and high interest savings accounts interest rates creeping up, is it becoming reasonable to just hold the conservative part of your portfolio in cash? I honestly don't see the upside benefits of properly conservative bonds right now in light of full liquidity in a savings account at similar rates. You theoretically get stability by locking in interest rates longer term, but that kind of seems like a downside at the moment given that we are at possibly unsustainably low interest rates. Like, why would I want to be buying bonds or in a bond fund where a quarter of the holdings are 20 year bonds when I expect that interest rates will go up in that period and returns are low enough that they could be demolished by a rise in inflation?
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Jan 7, 2020 11:31
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VelociBacon posted:I don't know the current risk free rate but wouldn't holding a well diversified bond ETF in a TFSA offer similar liquidity and better returns than what you'd get from a savings account? You have liquidity but not guarantee of the principal if you use that liquidity. If interest rates rise, the value of the existing bonds portfolio drops. You could reinvest that at the newer higher interest rates and roughly get back your pricipal (maintain the same value at maturity including coupon payments) but you'd be out money now. Not a huge deal, but just because you're in a fund doesn't mean you aren't constrained by the nature of a bond. If I just look at yield to maturity, XBB is at 2.2% and XGB is at 1.99%. They have MERs of 0.1 and 0.4 on top of that. I have a 2.8% savings account.
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Jan 7, 2020 22:19
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Wrong Canada thread. Sorry!
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Mar 30, 2020 23:59
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Unless you think an investment will not be negatively effected by a record level of unemployment and sudden cratering of demand across almost all sectors, it is likely not the time to buy that thing. They are sure as hell not priced into the market right now because literally nobody knows what the results of the current situation will look like. There are a lot of people trading like this is a blip, which is likely holding things steadier than they have any right to be. You'd basically be betting on how you think the government will respond, because without their input the airlines will collapse or be heavily crippled. The same holds true of a lot of things right now. Anyone who tells you that they know what a good investment is right now is a liar.
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Apr 6, 2020 06:22
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Purchasing physical real estate also generally comes with heavy leveraging. From a leverage standpoint, a 10% downpayment is equivalent to buying a REIT where you've buying 90% of the value on margin. In theory that comes with all the risks of heavy leveraging, but realistically the entire market is so leveraged and makes up such a large fraction of the national economy that you can maybe count on some sort of protection from the government and leeway from the banks if it really tanks? That's screwed up, but maybe true. It part of why the returns seem so significant in real estate. People are heavily leveraged on an asset that gets treated as only increasing in value from a risk standpoint, and then those leveraged capital gains aren't taxed if it's your primary residence.
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Mar 2, 2021 01:54
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What I've found about a lot of 'green' funds is that they end up focusing a lot on financial companies... which... well... There's no such thing as ethical capitalism. That being said, there is demonstrably less ethical capitalism, so there is presumably slightly more ethical capitalism, I guess. So do your best to try. Some people will argue that you aren't promoting the negative actions of the company because you aren't funding them. From my standpoint, though, you fractionally own the company, so presumably you are fractionally complicit in things they do. We are fractionally complicit in horrible things pretty much constantly in our society, though, so it's up to you how much you want to worry about this one type of complicity. Some options if you aren't comfortable owning something: 1) figure out what percentage of your funds are from poo poo you hate, guesstimate the dividends and gains from them and give that money to something that actively opposes the thing you don't want happening. 2) Bias your portfolio away from that sector by buying other things to make up the slack. Buy less of the big funds that contain things you don't want and buy some specific stocks or funds in green energy, or whatever you're more supportive of, to balance things in a way you're more comfortable with 3) Make positive action in your life that more than counteracts whatever negative action you think you're doing. If you're making a hundred bucks a year from oil and gas, you're probably doing okay by sending letters to government, going to some protests and making good transportation choices. If you're making a hundred grand a year, I don't know what to tell you? Just some thoughts.
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Mar 24, 2021 20:29
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Where are you? In most places if you break a lease the penalty is limited by the actual damages. If you are in a market that is like that and rentals are hard to come by, you'll only lose a month or two of rent max to break it, and maybe none. Basically, the costs of breaking a lease can be small so don't let that force your hand
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Mar 25, 2021 04:51
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xtal posted:Do you have any more info about this? I would love to break my lease! Okay, looks like I was wrong about it being most places. All I can confirm is BC. Wow most provinces have even shittier tenant protection laws than us
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Mar 25, 2021 17:13
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Rukus posted:There's also Horizons High Interest Savings ETF, which can be traded without needing any advisor, and beats having to constantly chase promotional rates. Though I've heard that some banks (TD is supposedly one) won't let you buy it , as they'd rather you buy their own similar product (with much higher fees). I have held my investment account cash in this or csav for the last while. The difference between this and which is obviously that this is more volatile in interest rates potentially. I have locked in some cash into gics and hold a bunch of my more liquid stuff in these. The last two months have had it at around five percent but before that it was down at maybe three for some months despite it being similar prime rates. You have to keep an eye on it because you aren't going to get an update that the rate has heavily changed. It gets me about the same return as I was getting switching between the best non promotional savings accounts ever twelve months or so with way less effort, which is great. The savings ETFs are not insured though, vs an actual savings account or a gic. I like the ease but it's got downsides people should be aware of. It's interesting at the moment, because there's upside opportunity costs to think about on interest rates, which is not something a lot of us are used to. I'm definitely having to think hard about whether my risk instincts are right. In the recent environment there were definitely risks on loans based on interest rates rising, but even a tripling in interest rates wouldn't really change the calculus on Bond returns, gics or savings accounts vs other investments. You didn't need to think about whether you were locking yourself out of a better situation in those areas. T.C. fucked around with this message at 03:20 on Feb 8, 2023 |
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Feb 8, 2023 03:18
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I've had a savings account with Motive for several years. Their customer service is kind of dumb and I sure wouldn't want my chequing/spending account there but their rate is consistently high enough that I don't feel like a sucker for being too lazy to shop it around.
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Jun 2, 2023 09:04
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I have had a savings account at motive for years. I've had to contact them more than you'd expect, but they're an insured bank and all that so they don't worry me. Their website is pretty bad. I wouldn't use them for something I was regularly interacting with to do intricate things, but if you're just dumping money in periodically and letting it sit then it'll be fine. They consistently keep their rate high enough that it's in range of the best ones and have for a number of years, so it does what I need.
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Aug 7, 2023 21:04
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They aren't insured, they're primarily taxed as interest and the rates when I've compared are a bit less than the best you'll find yourself but not generally worryingly lower. Where it sits with rates varies pretty constantly though and you have to actively watch it because you aren't going to know what it was last month unless you're watching it. I've had to put a reminder in my calender to spot check the effective interest rate every couple of months so I don't forget. Oh, I think the major ones are specifically diversified across institutions to mitigate the risk of being uninsured. So if a bank goes down, you lose some but not all of the assets.
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Sep 12, 2023 22:17
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If there a reasonable ETF that has something like a tsx index minus banks and financials. I have fallen pretty far off of my allocations and should pick up some more Canadian assets, but so much of the major indexes are financial companies and that honestly feels like a lot of systemic risk to be sinking a bunch of money into. It feels like there's a shoe waiting to drop with them pushing loan amortizations way out to avoid forcing people to go into arrears.
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Sep 20, 2023 10:17
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Lone Goat posted:My mom is going on a trip to Europe but doesn't have a debit or credit card and is being told that Sweden is mostly cashless and she'll need a card of some sort. Regardless of if this is true or not, I'd rather not just have her out there with a wad of cash, so I'm looking for a prepaid card but I'm getting conflicting reports on what's available. You can generally add people as secondary card holders to your credit account. They will normally issue a card to that person with their name on it but it will show up on your statement and you are responsible for their charges
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Apr 25, 2024 20:10
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priznat posted:Any good ways to find accountants in the area? I think I should get one. The best thing to do is ask competent people that you know. It's not a thing people generally treat as private so you can bring it up in conversation even with random acquaintances
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Apr 25, 2024 20:14
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| # ¿ May 13, 2024 22:26 |
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Lone Goat posted:Oh lol that's absolutely not going to work. She is very irresponsible with money (there's a REASON why she doesn't have a credit or debit card) and there's no loving chance I'm going to let her on my accounts. Yeah, you want a card in her name specifically then, even if it's a prepaid card. In theory you shouldn't be able to overspend a prepaid card but I wouldn't trust that internationally. Then just get her login info if you are going to administer it for her. Koho.ca does fast signups for prepaid cards and will send you a physical one if you ask (not always a given with the online prepaid card sites). You can fill the card using e-transfer from a bank account. I use them for ordering from sketchy online stores and they've generally been fine. Don't know what happens if you try to put down something with a hold on a prepaid card, like for car rentals or hotels, though.
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Apr 25, 2024 21:04
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