Author Topic: Almost Canuck time for 2016 TFSA deposit  (Read 15029 times)

Stasher

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #50 on: January 08, 2016, 02:51:02 PM »
Deposit confirmed monday from my online transfer and now I just did my VCN VXC and VAB trades today.
The extra big drops this week on the markets gave me a little bit of an extra discount "at the till"
Now lets hopefully see the year gradually rebound

Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #51 on: January 08, 2016, 08:42:56 PM »
Deposit confirmed monday from my online transfer and now I just did my VCN VXC and VAB trades today.
The extra big drops this week on the markets gave me a little bit of an extra discount "at the till"
Now lets hopefully see the year gradually rebound

$5500 divided by three?   Are you considering all your accounts as one asset allocation? 

Retire-Canada

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #52 on: January 09, 2016, 07:12:44 AM »
$5500 divided by three?   Are you considering all your accounts as one asset allocation?

That is what I do and I would take the opportunity to rebalance my accounts when I add money so even if my desired AA was split evenly into 3rds I would not be buying each ETF in equal measure.

Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #53 on: January 09, 2016, 07:20:52 AM »
My point wasn't equal division or not.  I was wondering if he split $5500 into three funds in his TFSA contribution, for the simple reason of efficiency and reduction of trading fees (even Questtrade will charge you to sell them).  I'm assuming his TFSA isn't his only account.

https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts#Principles_of_asset_allocation_across_multiple_accounts


My TFSA holds only VCN.

VAB, VUN, XEF and VEE are in the RSPs.
« Last Edit: January 09, 2016, 07:29:55 AM by Heckler »

Retire-Canada

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #54 on: January 09, 2016, 09:10:26 AM »
My point wasn't equal division or not.  I was wondering if he split $5500 into three funds in his TFSA contribution, for the simple reason of efficiency and reduction of trading fees (even Questtrade will charge you to sell them).  I'm assuming his TFSA isn't his only account.

https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts#Principles_of_asset_allocation_across_multiple_accounts


My TFSA holds only VCN.

VAB, VUN, XEF and VEE are in the RSPs.

How do you save on trading fees by either:

- holding same ETFs in all accounts
- holding only specific ETFs in specific accounts

I have mostly the same ETFs in my TFSA and RRSP. I hold only VCN in my non-reg account because I am taxed on those dividends.

I look at the overall AA for all my accounts when I rebalance by making additions to my accounts [free at QT as you note] so I don't see how there would be any extra costs doing it this way.
« Last Edit: January 09, 2016, 09:12:22 AM by Retire-Canada »

Stasher

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #55 on: January 09, 2016, 12:44:45 PM »
Super simple...
One TFSA self traded brokerage account in which I hold the 3 Vanguard funds based on my AA
I deposited the $5500
I opened up my spreadsheet that handles my Asset Allocation rebalancing a
 - entered value of each fund currently
 - entered that I will be depositing 5500 plus any cash dividends sitting in the cash portion of the tfsa
 - entered my portfolio asset allocation percentages
Spreadsheet computes how much to buy of each fund so essentially I just rebalanced to meet my 25-25-50 AA

Yes there is a cost $9 per trade, this is why I only try to the one deposit and purchase per year.

nobodyspecial

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #56 on: January 09, 2016, 01:15:02 PM »
They charge for buying ETFs?

Stasher

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #57 on: January 09, 2016, 01:37:58 PM »
They charge for buying ETFs?

Mutual funds are free but ETF's have a trade fee
http://www.scotiabank.com/itrade/en/0,,3693,00.html


Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #58 on: January 10, 2016, 09:39:53 AM »
When it came to my lifes savings, I chose to stick with my major bank's self directed brokerage which charges $9.95 to buy or sell. Therefore, the number of holdings I have increases my trading costs. Between the two of us, we also have 5 accounts, which I treat as one AA as per the link I previously provided.

As already stated, its irrelevant for someone buying through Questrade, and someone with just a single account it doesnt matter either.  But even in Questrade, your dividend growth will compound quicker if your holdings are large enough to DRIP instead of cash.

My assumption about a 40+ year old who claims a mustache is that he also holds more than a TFSA and that maxing out on $5500 in January wont be his only contribution. Thus the information I linked about efficiently managing AA in multiple accounts may have been relevant. 

Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #59 on: January 10, 2016, 09:44:20 AM »
What will it cost you at Questtrade to sell?  How will you take a $40k per year out of those accounts holding multiples of the same fund across accounts?

Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #60 on: January 10, 2016, 09:49:12 AM »
http://www.questrade.com/pricing/DIY-Trading/fees-and-rates/exchange-ecn-fees

Oh, here it is.  $0.0035 per share to sell a TSX ETF.  I guess that makes number of holdings irrelevant.

Im curious - have you Questrrade guys calculated your future trading costs when you want to take funds out?


nobodyspecial

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #61 on: January 10, 2016, 01:49:44 PM »
Oh, here it is.  $0.0035 per share to sell a TSX ETF.  I guess that makes number of holdings irrelevant.

Im curious - have you Questrrade guys calculated your future trading costs when you want to take funds out?
Most ETFs are around the $30 mark so that's a 0.01% fee
Probably want to sell a few months worth of expenses at a time, I think there is a $5 minimum fee
 

Retire-Canada

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #62 on: January 11, 2016, 07:01:13 AM »
Im curious - have you Questrrade guys calculated your future trading costs when you want to take funds out?

Having ETFs duplicated across RRSP/TFSA lets you rebalance as you make additions throughout the year. If I held just one ETF in my TFSA for example I'd have to wait a year to make a change to it. This way until I have maxed out both of my RRSP/TFSA I can continue to push my AA back towards the plan.

The maxing out typically happens late summer/early fall so then there is a few months until I add again in January.

Since I am adding funds most of the year I can top off any dividends to full shares so they get reinvested now.

QT charges ~$5 - $10 commission to sell. I'll be taking money out of my RRSP first and leaving my TFSA alone possibly still adding to it from RRSP. If I take money out from a single ETF 2-4 times a year it gives me the opportunity to keep rebalancing on the way down.

I haven't nailed down a plan on exactly how/when the money will come out and the fees may well change by that point so I don't have a cost analysis done.

Mmm_Donuts

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #63 on: January 16, 2016, 07:07:03 AM »
Just did my buy yesterday. I'm glad I held off a bit.

I bought 200 shares of VDU. It was falling, so I can only hope I didn't buy a falling knife, but I took the plunge. TFSA is now fully funded and fully invested!

Retire-Canada

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #64 on: January 16, 2016, 07:21:31 AM »
Just did my buy yesterday. I'm glad I held off a bit.

I bought 200 shares of VDU. It was falling, so I can only hope I didn't buy a falling knife, but I took the plunge. TFSA is now fully funded and fully invested!

The Int'l developed world isn't going to disappear. Let's say VDU drops another 10% this year who cares in 10 years+? There is no way to know what will happen. Just invest when you can and don't worry.

I bought VDU at all sorts of different prices over the last 12 months. I'll just keep buying it in accordance with my AA. Sometimes it will be cheap and sometimes it will be pricey.

Mmm_Donuts

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #65 on: January 16, 2016, 07:37:59 AM »
Just did my buy yesterday. I'm glad I held off a bit.

I bought 200 shares of VDU. It was falling, so I can only hope I didn't buy a falling knife, but I took the plunge. TFSA is now fully funded and fully invested!

The Int'l developed world isn't going to disappear. Let's say VDU drops another 10% this year who cares in 10 years+? There is no way to know what will happen. Just invest when you can and don't worry.

I bought VDU at all sorts of different prices over the last 12 months. I'll just keep buying it in accordance with my AA. Sometimes it will be cheap and sometimes it will be pricey.

This is what I love about index investing. Just keep buying, thorough highs and lows, because it's not like it's ever going to zero. Having an AA and sticking to it helps tremendously, because it takes the guesswork and fear out of the whole process. (former stock picker here!)

Retire-Canada

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #66 on: January 16, 2016, 08:16:31 AM »
This is what I love about index investing. Just keep buying, thorough highs and lows, because it's not like it's ever going to zero. Having an AA and sticking to it helps tremendously, because it takes the guesswork and fear out of the whole process. (former stock picker here!)

Agreed.

Realizing my old financial advisor had no more of a fucking clue what was going to happen than I did was amazingly liberating and empowering.

Heckler

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Re: Almost Canuck time for 2016 TFSA deposit
« Reply #67 on: January 16, 2016, 08:21:47 AM »

Agreed.

Realizing my old financial advisor had no more of a fucking clue what was going to happen than I did was amazingly liberating and empowering.

+1

Realizing my financial adviser was up to her eyeballs in debt is what drove me to learn and liberate myself.