Author Topic: [CAN] Multiple accounts v. asset allocation  (Read 648 times)

Dogastrophe

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[CAN] Multiple accounts v. asset allocation
« on: May 24, 2019, 09:56:13 AM »
Between my wife and I, we have 6 investment accounts:

Me:  RRSP, LIRA, TFSA, Work RRSP
Her: RRSP, Work RRSP

In a couple of years, will also have a TFSA for her and potentially a LIRA if she leaves current employer.  I stumbled across a decent spreadsheet last night for tracking the allocation of multiple account but now trying to get a handle on best route.

Currently we are 100% equity (index funds) - went this route last fall after we broke up with our high cost mutual funds.  I want to move toward an 80/20 allocation (have a 10 - 15 year time horizon on all accounts, except maybe the TFSA). 

How do others manage asset allocation across multiple accounts?  Do you chose one account as the bond account?  Allocate per account?  Suggestions?

daverobev

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #1 on: May 24, 2019, 11:20:00 AM »
As you're currently all in registered accounts it doesn't matter much except that you keep US domiciled stuff out of the TFSA to avoid loss of dividends.

If you have several RRSPs it just doesn't matter which of them has things - aside from things like trading fees. You may want to keep a spread in RRSPs, and make sure longer term stuff in the locked in accounts - but you can always rebalance.

Oh, and once the TFSA/s get big, in terms of allocation remember to discount the value of the RRSPs by a guestimate of tax when pulling money out.

Lews Therin

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #2 on: May 24, 2019, 11:44:04 AM »
I`d place Bonds in RRSP (since they will grow the slowest, and I want my RRSP not to get huge compare to the other accounts) same thing for LIRA.

TFSA gets stocks. Taxable gets non-dividend returning while I work, and canadian dividend payers when I retire.

NVDee

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #3 on: May 25, 2019, 07:03:41 AM »
Slightly related, you may be able to move a small lira to your RSP, reducing the number of accounts.

https://novascotia.ca/finance/pensions/docs/Form12-HardshipUnlockingInstructions.pdf

See part Two, B or C.   We moved $4500 from a lira to RSP in BC with a few forms submitted to our brokerage. 

This would allow you to consolidate your holdings. Especially once you realize you might also want a Spousal RSP in order to match the total value of his and hers registered accounts.

https://www.novascotia.ca/finance/en/home/pensions/about/pensionincome/LIRA.aspx
« Last Edit: May 25, 2019, 07:12:20 AM by NVDee »

NVDee

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #4 on: May 25, 2019, 07:07:53 AM »
And check your work RSP rules for transferring out to your personal RSP.  Mine allows once a year to transfer out everything for free, so I take full advantage so that I can buy ETFs.   You may be able to consolidate more and reduce fees. 


Dogastrophe

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #6 on: May 28, 2019, 07:49:08 AM »
Thanks for the links, I will give them a look.

I had found the spreadsheet last week.  I had started to build one but figured someone must have already made something that I could modify.

J.Milly

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #7 on: June 07, 2019, 07:22:55 AM »
So technically there is an advantage to holding interest bearing securities (bonds) in your RRSP or TFSA due to the fact that it's taxed like income when held outside of those, and capital gains and dividends are taxed more favourably. So you can go that route.

Personally I have an allocation per account that I try to keep to, (ie. all of my accounts are 85-90% equity and 15-10% fixed income). Makes my life easier and for the couple of dollars of tax savings I don't really care. However it gets a lot more in depth if you start noting how much of each account is cad/us/rest of world). Though I like doing the excel work!

daverobev

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Re: [CAN] Multiple accounts v. asset allocation
« Reply #8 on: June 07, 2019, 08:46:03 AM »
So technically there is an advantage to holding interest bearing securities (bonds) in your RRSP or TFSA due to the fact that it's taxed like income when held outside of those, and capital gains and dividends are taxed more favourably. So you can go that route.

Personally I have an allocation per account that I try to keep to, (ie. all of my accounts are 85-90% equity and 15-10% fixed income). Makes my life easier and for the couple of dollars of tax savings I don't really care. However it gets a lot more in depth if you start noting how much of each account is cad/us/rest of world). Though I like doing the excel work!

Canadian dividends, all capital gains.

Also, Canadian dividends are grossed up so they 'look like' more money than you receive (impacts child benefit, oas, etc).