Author Topic: Once Debt is Paid Off (Soontime), where to save  (Read 13682 times)

apple_ya

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Once Debt is Paid Off (Soontime), where to save
« on: June 20, 2012, 07:50:30 PM »
OK right now about $1800 per month is going into debt payments and once that's done, where do I start?

I currently save $200/month on RRSP but I think the return is something like 2%...

once I am able to save this $1800...where should i put it?

I have an accountant who takes care of the RRSP but should I just go to my bank (ScotiaBank) to meet a planner? would that be my best bet?

I dont know stocks/trading and would rather someone do this for me.

thanks for the info

gooki

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #1 on: June 20, 2012, 08:38:04 PM »
Is this for long, mid or short term investing?

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #2 on: June 20, 2012, 09:35:00 PM »
I have an accountant who takes care of the RRSP but should I just go to my bank (ScotiaBank) to meet a planner? would that be my best bet?

That will cost you a lot of money.

Not up front, but over the long run, it will cost you a lot.
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Lars

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #3 on: June 20, 2012, 10:13:00 PM »

I dont know stocks/trading and would rather someone do this for me.


It seems really complex but once you've got a plan it isn't any harder than paying a bill once a month. if your interested in learning more about doing it yourself, folks here would be happy to share some links and reading recommendations.

On the subject of a plan, what are your future goals - retirement at age x, save for house, retire to another country, etc? Do you have an adequate emergency fund?

DaftShadow

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #4 on: June 21, 2012, 12:28:42 PM »
http://jlcollinsnh.wordpress.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/

Really, you just need to get started and find the most diversified index fund you can get your hands on. 

Make it automatic (I use ING's sharebuilder to buy my stocks, because you get a few automated transactions every month for free :), and then check in every once in a while to make sure it's working properly. 

Every time you use someone else to do the work for you, you have to pay for their services.  And every time you pay for their services, they get the profits while you do not.  Instead, the better way is to study if yourself a bit and save the profits for yourself.  Read the above link and others it is connected to; they will help point you in the right direction.

~ DaftShadow

grantmeaname

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #5 on: June 21, 2012, 01:23:41 PM »
Seconded. Insourcing is your path to mustachian wealth. Do your own tires, cook your own dinner, clean your own house, and buy your own index funds. If you need an absolutely, totally no-brained solution, buy a fund like Vanguard's Wellington that does its own asset allocation and rebalancing internally, and you just contribute and forget it.

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #6 on: June 21, 2012, 02:33:56 PM »
+1 to the above two posts.

Wellington is decent (but not quite aggressive enough for me equity wise, at 65/35, for someone in the accumulation phase), but not a bad choice by any means.

JLCollins' blog had a good series a month or so ago about investing.

On the lefthand side of the link to his blog from Daft's post, read "Stocks" (part 1 - 7).  They're short, simple reads, and directed at a beginner.

Copying his DIY plan, or going with Wellington, will likely make you much more than having someone else invest it for you and paying their commissions.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Norman Johnson

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #7 on: June 22, 2012, 07:56:24 AM »
We don't have the low cost index funds like they do in the US. Check out CanadianCouchPotato's blog for some Canadian low cost balanced index fund plans. His blog is also a really good read to learn about index investing.

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #8 on: June 22, 2012, 12:31:29 PM »
I had good experience with TDAmeritrade financial advisers. They do not charge a fee for their services if you are a client with TD.

I'd avoid using bank's financial advisers because they are often fee based and charge a pretty penny for their services.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #9 on: June 24, 2012, 08:37:44 AM »
thanks everyone
so basically what you're saying is that i can read some websites and i can start investing my money in stocks?
and making money? is it really that easy?

i am looking to invest where there is no opportunity to loose money, for the long term...right now my accountant invest my rrsp in wellington west and i know it has not been loosing any but i also know that it hasn't made a lot...i only have a 5K so i guess nothing huge....

my stepdad invested his money with cibc wood gundy over 30 yrs now and he said he's made an average of 8% return...but there was some years when he lost some money but the account regained in other years when it made more return...

so how is investing with banks not a good idea?

i work 5 days a week, 7 am to 6 pm and i wont be able to sit on my computers hours after looking at my investments and buying and selling stocks....

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #10 on: June 24, 2012, 08:43:08 AM »
forgot to mention,
my boss mentions that he invests his money in private mortgage pool for people who cannot go to banks.

he said the interest he's made is about 8-10% so far....

sample website: http://www.4mortgages.ca/investrrsp/

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #11 on: June 24, 2012, 09:46:46 AM »
if anyone has read a website that will be helpful to me, a beginner, please post here so i can read them all and try to educate myself...

i would invest my own monies and i would take the time to read what i need and learn what i need...

i just wont want my mistakes (as a beginner) to cost me money in the stocks investments...

is there a safe way investing in stocks?

for example i invest 5000 as a beginner, i dont really know what im doing, i forget to check one day, and i loose 1000...is this possible?

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #12 on: June 24, 2012, 10:17:01 AM »
so basically what you're saying is that i can read some websites and i can start investing my money in stocks?
and making money? is it really that easy?

Pretty much.  Buy index funds.  You'll own shares in every U.S. company.  (P&G, Coca Cola, Apple, HP, Kraft, etc. etc. etc.)  Unless you think over the long term all of those companies will not make money...


i am looking to invest where there is no opportunity to loose money, for the long term...

There is ALWAYS risk of losing money, or there won't be any reward.  Over the long term though, the stock market goes up because of its fundamental nature of being made of businesses that make money; when inflation hits and goods cost more, they are making more.  Unless the world economy collapses, you're pretty safe long term. And if that's the case, then there was no investment with no opportunity to lose money.


my stepdad invested his money with cibc wood gundy over 30 yrs now and he said he's made an average of 8% return...but there was some years when he lost some money but the account regained in other years when it made more return...

so how is investing with banks not a good idea?

Well since the S&P gained 8.7%/yr. in the last 30 years (including the last "lost decade") versus his 8%, I'd say that was only a mildly poor decision.  But let's run the numbers.

If he had invested, say 10k with that investment and got 8% over 30 years versus 8.7% he'd only have 100626.57 instead of 122147.99, a loss of 21521.42 (or rather, he'd have about 20% more money).  I'd rather have 20% more money in 30 years.

my boss mentions that he invests his money in private mortgage pool for people who cannot go to banks.

You want risk free, then you talk about mortgages for people who can't qualify with banks?  Heh, good one.

i work 5 days a week, 7 am to 6 pm and i wont be able to sit on my computers hours after looking at my investments and buying and selling stocks....

No no no, don't do that at all.  Pick a good asset allocation.  Dump money in regularly.  Don't ever look at what the market is doing.  Up, down, left, right, contribute.  Occasionally rebalance. Over a long time period, that dollar cost averaging into index funds will make you rich.

Don't try to time investments and buy and sell.  Many (most?) rich people don't sell.  Buy and hold.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
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arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #13 on: June 24, 2012, 10:20:14 AM »
if anyone has read a website that will be helpful to me, a beginner, please post here so i can read them all and try to educate myself...

i would invest my own monies and i would take the time to read what i need and learn what i need...

i just wont want my mistakes (as a beginner) to cost me money in the stocks investments...

is there a safe way investing in stocks?

for example i invest 5000 as a beginner, i dont really know what im doing, i forget to check one day, and i loose 1000...is this possible?

Start with the bogleheads wiki.  If you lose 1k because you "forgot to check" then you're doing something wrong - day trading and trying to time the market, something proven to lose money over time.

Like I said in the previous post, buy and buy and buy.  If the market is down, then you're getting a discount on stocks, yay!

If you went to the grocery store and milk was 25% off, you'd be happy. Same thing with the stocks you want to buy.  Market is down 25%?  Huzzah, then my normal contributions will buy me a larger amount than normal, so when it goes back up, I make even more money.

You seem to think of investing as day trading, and I strongly encourage you to get that out of your head.  Likely if, as a novice, you're selling more than once or twice a year, very rare exceptions aside, you're doing something wrong.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Devils Advocate

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #14 on: June 24, 2012, 12:41:57 PM »
Second the bogleheads wiki

Tons of great info for FREE!  Don't waste your $$$ on a "financial planner" (i.e salesman) like I did for the past few years.  It's not rocket science and you don't need them.  You don't spend hours on computer.  A little up front research and you should be good. 

Fees and trading eats up profits.  Pick your allocation and stick with it.

DA

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #15 on: June 24, 2012, 12:51:17 PM »
I feel that most people are overestimating the OPs level of financial knowledge.
What does "I currently save $200/month on RRSP" mean? Does OP know that an RSP is only a vehicle to defer taxes. What kind of investment is her RSP? I can't imagine why you would need an accountant to "take care of" that small amount.

Also, the OP is Canadian. I'm not sure how useful places like the Boglehead Forum, etc would be to a Canadian, unless they were already well aware of how to invest in index funds.

My advice - start with the absolute basics. Why do you have so much debt? If it's not from school loans or a mortgage was it from overspending or emergencies or unemployment? First thing is to have an emergency fund, in something safe and liquid - a savings account probably.  About 6 months of expenses is often a good starting point. For this you can make use of the TFSA, since not paying taxes on the interest will assist with the extremely low rates right now. I don't know in which province the OP is, but where I am there are some credit unions offering 2% savings account. Which is pretty good considering 5 year GICs are paying 3% and the latest inflation is below 1.5%.

Then start to worry about RSPs. Try to educate yourself about what types of investments can be part of your RSP portfolio.

I would NOT jump right into the stock market without doing those things first. Try to find a basic financial book for Canadians, which will explain all these things. The newer, the better.

If you want to dabble in stocks a bit with a portion of your money, I've been using ING Direct's mutual funds, as a compromise between doing Index funds completely myself and paying too high fees for somebody else to manage mutuals for me. The fees are reasonable and it's good starter method. Once you have more money to work from and have determined your risk tolerance, and know the pros and cons of different investments, that's the time to consider things like index funds.

Norman Johnson

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #16 on: June 24, 2012, 01:24:37 PM »
Yeah, some of this advice is for Americans, and my guess is you are a fellow Canuck, right gwan?

http://canadiancouchpotato.com/ is a great blog and has lots of information. He writes some basic stuff, and gets into more advanced things too, but his whole deal is investing in index funds and leaving your money alone. He has sample portfolios and lists the MER of all the funds too. (And he will even explain what MER stands for.)

You can read US websites about investing because a lot of the principle is the same, but this has a canadian perspective, like tax laws, RRSP vs TFSA, etc. There are even some posts on which financial institution offers the best prices on funds for the amount of money you are going to start out with.

I highly recommend that blog. There are Canadian blogs out there... Just a little harder to find sometimes!

Norman Johnson

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #17 on: June 24, 2012, 01:30:56 PM »
And just to add in, the banking system in the US is way way different than what we have here in Canada. We were ranked safest in the world. (http://www.cbc.ca/news/business/story/2012/04/11/moodys-canada-banks.html)

You can still lose money in an investment account due to ups and downs of the market, but I wouldn't worry about TD or Royal Bank going under or something.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #18 on: June 24, 2012, 02:10:29 PM »
i shall read more about index funds and where to start
and thanks everyone for the input :D

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #19 on: June 24, 2012, 02:16:06 PM »
Cool.  Glad you're willing to read a little.

I was serious about this advice:
JLCollins' blog had a good series a month or so ago about investing.

On the lefthand side of the link to his blog from Daft's post, read "Stocks" (part 1 - 7).  They're short, simple reads, and directed at a beginner.

Copying his DIY plan, or going with Wellington, will likely make you much more than having someone else invest it for you and paying their commissions.


Start with this link:
http://jlcollinsnh.wordpress.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/

Then read this:
http://jlcollinsnh.wordpress.com/2011/06/14/what-we-own-and-why-we-own-it/

Then in order:
http://jlcollinsnh.wordpress.com/2012/04/15/stocks-part-1-theres-a-major-market-crash-coming-and-dr-lo-cant-save-you/
http://jlcollinsnh.wordpress.com/2012/04/19/stocks-part-ii-the-market-always-goes-up/
http://jlcollinsnh.wordpress.com/2012/04/25/stocks-part-iii-most-people-lose-money-in-the-market/
http://jlcollinsnh.wordpress.com/2012/04/29/stocks-part-iv-the-big-ugly-event/
http://jlcollinsnh.wordpress.com/2012/05/09/stocks-part-v-keeping-it-simple-considerations-and-tools/
http://jlcollinsnh.wordpress.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/
http://jlcollinsnh.wordpress.com/2012/05/16/stocks-part-vii-can-everyone-really-retire-a-millionaire/
http://jlcollinsnh.wordpress.com/2012/05/30/stocks-part-viii-the-401k-403b-ira-roth-buckets/
http://jlcollinsnh.wordpress.com/2012/06/06/why-i-dont-like-investment-advisors/

The last one is particularly relevant to you, but I'd suggest reading them all in order.  Short little posts, probably an hour worth of reading total in the links above, and they're crammed with wisdom.

Print em out, or open them all in tabs, and start reading through.  In 30 years, you'll be really glad you did!  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Miyazaki

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #20 on: June 24, 2012, 07:14:21 PM »
I just want to second what arebelspy said. When I started, I confused "investing" with "day trading". It's a big mistake. Don't buy and sell. Just buy and buy. Then, you will get dividends (money from the profits that the companies make), which you'll receive quarterly. One day, if you keep buying, this amount will be enough for you to live on. At this point, you still won't sell. You'll either decide to stop buying and keep the same level of income, or to continue buying and increase your income further.

You said you're going to look at index funds. Be sure to check out the fees as one of your main considerations. The closer to zero the better!

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #21 on: June 24, 2012, 08:20:43 PM »
wow thanks everyone for the input

so once i finish reading maybe 100 more websites because i have to have the feeling i understand something at least well enough or i would just keep reading and finding informaiton for a while...

where do i go to start buying and buying?

what's the process?

is it insured?
can you buy through your bank?
do you need to contact an investment broker?
obviously once i start i will have to claim all money made on tax return time, do these companies give you tax receipts or is this something i will need to figure out myself...

i know really long ways from now but i just need to plan and get information

as someone already said it's better to do it yourself and i've made this my 3 year goal !!!!
i must get there in 3 years, to have 0 debt other than my mortgage and hopefully by then ill have enough information to buy and buy,....

:D

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #22 on: June 24, 2012, 09:59:47 PM »
Did you actually read any of the links?  Cause many of these questions should be obvious if you did. 

I mean, we love to answer questions, but hand holding seems a little silly.

To answer your first few questions, you just call Vanguard, open an account, deposit money (the way you would through any financial institution), pick what you want to invest in, and hit buy.  It really is that simple.

The only hard part is picking the asset allocation that's right for you (regarding age, risk tolerance, etc.) and having the guts to stick with it when the market goes down and the news and everyone else shouts that it's the end and you should sell.  (You shouldn't.)

Again, if you read any of the suggested links, this was covered.

Beginners asking questions is fine.  Beginners going off to learn and then asking more questions is fine.

Beginners asking questions, ignoring the answers, and asking ones that have been answered... not so much.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #23 on: June 25, 2012, 08:51:41 AM »
wow

i was collecting a bunch of websites to read for when i have time and will start investing... which will be in the next 3 years..... in hoping that this tread don't die first :D

i thought since all of you have more experience than me in investments i would ask all websites that have helped everyone here in the past

 thanks again and i will start reading and try to not ask anymore questions





arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #24 on: June 25, 2012, 07:10:41 PM »
I'm sure the thread will die sometime in the next three years.  Feel free to bump it or start a new one with questions you come up with as you read and learn.  Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #25 on: June 26, 2012, 06:29:59 AM »
I'm finished Part IV - Big Ugly Event...
I wasn't going to read the blog until later but it's very very interesting and it is my nature to ask a TON of questions so I hope it'll be ok.  I read all the articles he referred to and he is in the US....I need to keep remembering that not everything works the same way here in Kanata....

I will definitely try to find my answers there and on the internet first then when i have confusing info i will ask you pros...though sometimes I'd like to hear people's opinions and experiences

Also I figure that when I have questions along the way i feel I MUST ASK....otherwise I continue on reading without fully understanding the sections....

so far what I've gotten (please tell me if im wrong):
1. buy and buy
Q: if i keep buying and should not sell, how can i realize the profit? i wont try to time the market (see, i did read it :D) but per say i bought dollarama stock, then i leave it in there for 10 years....am i then ok to sell some so I can spend the profit?

2. when the stocks go to 0 or even minus values, these companies then dissapear and become part of new company that grow...
Q: what happens to my stocks? do I just loose it them completely per say I invested 10G and it will be 0? or will I have the same number of stocks but each valued at a minus?

that's it so far, im sure i will come up with more questions soon and I'm looking to find a Canadian book on investing for dummies...(please let me know if this is not a good book).

To think that I can do all of these myself wow, two years ago I paid my accountant $420 to do our taxes and I have no idea what he is charging on my RRSP wow i cringe thinking about that...

now i use a free software online and just wow

thanks !!!

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #26 on: June 26, 2012, 06:34:01 AM »
to answer the question about my rrsp
i have about 5K because i almost empited it when i bought a house last year.....

and it's invested with Wellington West and divided into Trimark Interest Fund, Trimark Select Balanced Fund and Trimark Government Plus Income Fund...

now is Trimark is management company? or the management who select what to invest on?
and again, I need to find a book that explain to me what Interest Fund, BAlance Fund or what all these fund terms mean....

All I can say is that I know my RRSP has not made more than $50 and has not lost any...that's all..

Miyazaki

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #27 on: June 26, 2012, 06:56:47 AM »
About number 1, please research more about dividends, or watch a YouTube video about it.

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #28 on: June 26, 2012, 07:54:04 AM »
Question 1:
Dividends aren't the only way, and many would argue they're a more recent fad, and actually in a bubble.

Yes, it's buy and buy and buy in the accumulation phase.

When FI, you'll sell, but not in a panic, but probably once/year to fund your living expenses.  You'll hopefully be withdrawing <4% for a SWR (and inflation adjust the amount).  You'll sell whichever part of your assets have gotten out of balance as part of your once/yr rebalancing, so in effect you're selling high.

Question 2:
If you buy individual stocks and physically hold the paper, yes, you hold worthless pieces of paper.  If you hold an index fund, they take care of that for you, and the only actual stocks you'll have are all the successful ones, the ones still part of that index (publicly traded).
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If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Mr Mark

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #29 on: June 26, 2012, 09:57:38 AM »
I think for those who want nothing to do with all this investing, shares, bonds, etc, it is very, very easy.

1/ open an account at Vanguard.
2/ buy 1 fund, Wellington. Symbol VWELX.
3/ Regularly buy more.
4 / Ignore the financial news, sleep happy. The whole world is working for you.

By just doing this, and not paying big fees, you'll beat 80% of all investors.

If you want to learn more, and be a bit more involved (but never actively trading in anything), you could do a bit better over the long term, but not by that much, compared to the huge losses and poor performance which is most likely doing active trading and trying to time the market, taking advice of 90% of advisors, etc.

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #30 on: June 26, 2012, 05:28:06 PM »
I don't feel Wellington is aggressive enough personally (65/53ish) for someone in the accumulation phase, but it would be good for someone already retired or someone slightly more risk adverse than I (and might be too aggressive for someone who is very risk adverse, in which case Wellesley is a good choice, which is about 40/60).

However, that's all a personal thing.

If I was picking one fund for someone who is DIYing and doesn't want to learn more and select an AA good for them, it'd be Wellington, and Mr. Mark's advice is 100% spot on.  Buy that. Buy more. Keep buying, especially when everyone else panics.  Ignore the markets and be happy owning some of every company.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Mr Mark

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #31 on: June 27, 2012, 11:01:13 AM »
I don't feel Wellington is aggressive enough personally (65/53ish) for someone in the accumulation phase, but it would be good for someone already retired or someone slightly more risk adverse than I (and might be too aggressive for someone who is very risk adverse, in which case Wellesley is a good choice, which is about 40/60).

However, that's all a personal thing.

If I was picking one fund for someone who is DIYing and doesn't want to learn more and select an AA good for them, it'd be Wellington, and Mr. Mark's advice is 100% spot on.  Buy that. Buy more. Keep buying, especially when everyone else panics.  Ignore the markets and be happy owning some of every company.

I fully agree 65/35 stock and bonds is not as aggressive as I have my own, but someone who really doesn't want to be active perhaps wouldn't like the 35% volatility of my own ~85/ 15 mix either  :-D. ... when Wellington's worst year ever was around 20% down.

But thanks for the consensus of VWELX. I use both VWELX and  Wellesley as core balanced holdings and then leaven with other stocks etc, naturally ;-)

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #32 on: June 28, 2012, 06:12:54 AM »
ok I have been reading and reading and noW I understand MER, ETF and Index Funds, have a list of questions I will post when I finish reading the blog...

However, now reviewing my investment in RRSP, it looks like garbage then lol.  Please let me know....

I dont fully understand it but now I can see that the return I'm getting is like 1% after MER (Year to Date), even tho it's supposed to be guaranteed as interest fund....

=================Question================
1. can you buy VWELX in canada? their website says only ETF and even that i have to open a brokerage account or use a financial advisor....is brokerage account what i open if i want to do it myself?
2. can someone who is from canada and has purchased VWELX and has claimed it in tax return message me, i have some more questions :D
3. has anyone from Canada purchase VWELX through the US Site?
=================Question================





« Last Edit: June 28, 2012, 06:32:17 AM by apple_ya »

Norman Johnson

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #33 on: June 28, 2012, 07:23:20 AM »
Hey, did you read any of my posts? ;)

Most of the people on this forum are American and will give you advice to invest like one. They wont really be able to comment on RSPs because they dont have them. We have different rules in Canada and rules about owning American and other foreign funds/stocks. It's not that you can't, there are rules. Also, there are tax breaks for owning Canadian funds/stocks. If you are looking for simple, don't try to open an American investment account. Stick to Canadian ones.

TD has the lowest cost funds last time I checked and Vanguard has just arrived here. You will not find funds that are as cheap as our American friends talk about, at least not yet. It's moving that way though.

grantmeaname

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #34 on: June 28, 2012, 07:46:38 AM »
It goes beyond tax breaks, too. If you're investing in American funds you're exposing yourself to an additional type of risk by you're coupling your retirement savings to the American economy. In many ways that can be a good thing, but the strength of the Canadian economy is really what matters if you're retiring there. You'll be buying goods and paying taxes in Canada, with Canadian money. Most of your retirement savings' exposure should be to your home country's economy.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #35 on: June 28, 2012, 08:24:25 AM »
got it and thanks again, before i was concentrating on the vanguard website on how tos and reading everything but now ill try to do the TD Web Broker service...

thx

Mr Mark

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #36 on: June 28, 2012, 09:02:26 AM »
Boy, the fees are horrendous! 5% up front or 6% on withdrawal? Am I reading that right?

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #37 on: June 28, 2012, 09:35:47 AM »
:(
what do i do with these? i have 4000 right now divided into the 3...
yikes


didn't make money, instead it's been costing me money
probably would be better if i just kept it under the bed, at home

i am still contributing $200 per month to this invesco/wellington west account.
Should I figure something else that is cheaper and stop this?
thx

arebelspy

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #38 on: June 28, 2012, 11:20:47 AM »
Yes.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

KMMK

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #39 on: June 28, 2012, 12:07:45 PM »
About your current RSPs, yes, even a high interest savings account or GIC would give you a better return, with 0 risk to your initial investment. Even if you just switch the $200 to an RSP savings account until you decide what to do, that'd probably be better.

This thread has me thinking more about getting into index funds as well. Was just reading about the TD e-series funds. That looks like the way to go in Canada, with smaller amounts of money, and monthly contributions at least. The Couch Potato investing site has lots of good info. As soon as I'm done with my short term savings plan (buying a house soon), I'm going to open a TD online account so I can start buying their index funds. I still think ING is good too, especially for a beginning investor - it's super easy to get started. But the MER is 1% instead of 0.33-0.5% with TD.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #40 on: June 28, 2012, 12:22:04 PM »
Thanks Kestra, the thing is I NEED RRSP to lower our income tax, now it's at a whopping 30% !!!!
so If I cancel this one, I still have to save into rrsp somewhere else...

the TD e-series application is very confusing, you're supposed to pick from the following and what percentages you want...how am i supposed to know this

Minimum Purchase
Lump Sum: $100/fund
Pre-Authorized Purchase Plan (PPP): $25/fund
Fixed Income
TDB909 TD Canadian Bond Index Fund - e
TDB910 TD Balanced Index Fund - e
Canadian Equity
TDB900 TD Canadian Index Fund - e
U.S. Equity
TDB903 TD Dow Jones Industrial Average Index Fundsm - e
TDB953 TD Dow Jones Industrial Average Index Fundsm ($US) - e
TDB902 TD U.S. Index Fund - e
TDB952 TD U.S. Index Fund ($US) - e
TDB904 TD U.S. Index Currency Neutral Fund - e
TDB908 TD Nasdaq® Index Fund - e
International Equity
TDB906 TD European Index Fund - e
TDB911 TD International Index Fund - e
TDB905 TD International Index Currency Neutral Fund - e
TDB907 TD Japanese Index Fund - e

ill just pick 100% TD Canadian Index Fund for now...

after answering some questionnaires in the application regarding risk, time, portfolio, this is my result

« Last Edit: June 28, 2012, 12:28:19 PM by apple_ya »

KMMK

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #41 on: June 28, 2012, 02:50:16 PM »
With your RSP you can just dump the money into an RSP savings account if you need to, get your taxes lowered, and then you can always transfer the money into something else when you decide what to do. Sometimes there are transfer fees, but often the bank getting your money will do a full or partial refund. That way you don't have to decide immediately what the best thing is.

For what to pick, this site: http://canadiancouchpotato.com has good pointers about what funds to pick. That's why I like ING for beginners, because they pick your basic portfolio (very similar to the couch potato) for you. And rebalance it for you as well.

I noticed that TD has a really long investor profile thing they make you go through as well (as do all banks re: mutual funds) that helps determine how risky your portfolio should be.

As far as all Canadian index funds, most people will have a portion in a bond fund as well. The portion will depend on your what level of risk/reward you are looking for.

apple_ya

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Re: Once Debt is Paid Off (Soontime), where to save
« Reply #42 on: June 30, 2012, 09:24:27 PM »
i actually met mr mustache today, in my hometown and found out he's from here...

it was pretty awesome and it's a sign for me that i must stick with the mustachians mustachiism....

yay

:D


just had to share !!!