Author Topic: Canada TFSA  (Read 5580 times)

Intrigue

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Canada TFSA
« on: April 13, 2018, 08:36:04 AM »
Hi guys,
I decided to open a new TFSA account with questtrade due to replies from the case study I posted earlier this week.
I have the capital to max the TFSA contribution to 57500 right away.

Right now, I'm not sure between the VGRO one-fund vanguard portfolio or mixing VCN/VXC (20/80).

However, I'm a bit confused with the withholding tax. Should I even bother ?
I know I will lose some money due to this tax in a TFSA account.
The Canadian market seem to have low returns compared to US/World so is the withholding tax worth considering ?


Thanks for your help, I'm really confused now :)
« Last Edit: April 13, 2018, 02:38:32 PM by Intrigue »

Prairie Moustache

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Re: Canada TFSA
« Reply #1 on: April 13, 2018, 10:54:51 AM »
Hi Intrigue,

I may be misinterpreting your post here, but if all of your capital is being allocated to your TFSA you shouldn't have to worry about tax loss harvesting. This would only come into play on a taxable account if you open one. Tax loss harvesting wouldn't come into play if you're going to buy the VGRO fund as there's nothing you can really replace it with if you're going to report a loss.

I'm also considering using the new VGRO product in my RRSP. I think it's a great option especially when you're still quite young and won't need to change your risk profile in the near future (I'm 25). If you're getting older and will need to have a more conservative profile allocation, I wouldn't recommend jumping into this single fund.

I'd be interested in hearing others opinions on Vanguards new single fund "solution". I'm pretty close to pulling the trigger as I currently hold my RRSP with Wealthsimple and I don't think I'm getting enough value to justify the 0.5% management fee. The only bonus is the pre authorized transactions and trades.

Cheers.

daverobev

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Re: Canada TFSA
« Reply #2 on: April 13, 2018, 11:10:41 AM »
VGRO and VBAL are *excellent*.

They have a couple of problems:

They are Canadian domiciled, and hence you will irrevocably lose any foreign withholding tax in both an RRSP and TFSA. For any American dividends, this is like adding 0.3% to the MER in an RRSP, because the US sees an RRSP as a proper retirement vehicle.

They have an odd selection of bonds; pretty much everywhere else suggests only holding bonds from the country you want to retire in. Worse, the bonds are hedged to Canadian dollars.

The more efficient option is to hold VTI (in USD) in your RRSP, and something like ZEA in your TFSA; then put Canadian stuff outside.

But. For anyone who doesn't want to faff - at all, ever - these new Vanguard ETFs are great. No rebalancing, nothing. Buy it, and forget about it.

Lews Therin

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Re: Canada TFSA
« Reply #3 on: April 13, 2018, 11:46:43 AM »

However, I'm a bit confused with tax harvesting. Should I even bother ?
I know I will lose some money due to this tax in a TFSA account.
The Canadian market seem to have low returns compared to US/World so is the tax harvesting worth considering ?

Thanks for your help, I'm really confused now :)

You can`t harvest losses in a TFSA. (Because you don't pay taxes in that account)
It has no effect, so don't worry about tax harvesting for TFSAs!

It`s only available in a taxable account (the one you will open after your RRSP and TFSA are full); It`s selling an investment that is worth less than when you bought it, and that loss can cancel out the exact same amount in capital gains at some point in the future, whenever you decide to use the loss. (With a buy-hold for long term, it`s not always that useful)

I personally wouldn`t put something with bonds in the TFSA, I`d go 100% stocks, since it should be returning the most, and that`s more income I want to be tax-free. Put bonds in your RRSP!

Intrigue

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Re: Canada TFSA
« Reply #4 on: April 13, 2018, 02:35:34 PM »
I meant withholding tax, not tax harvesting !
Stupid fingers who won't type what I think...
Sorry about that !
« Last Edit: April 13, 2018, 04:14:22 PM by Intrigue »

Prairie Moustache

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Re: Canada TFSA
« Reply #5 on: April 13, 2018, 04:05:17 PM »

However, I'm a bit confused with tax harvesting. Should I even bother ?
I know I will lose some money due to this tax in a TFSA account.
The Canadian market seem to have low returns compared to US/World so is the tax harvesting worth considering ?

Thanks for your help, I'm really confused now :)

You can`t harvest losses in a TFSA. (Because you don't pay taxes in that account)
It has no effect, so don't worry about tax harvesting for TFSAs!

It`s only available in a taxable account (the one you will open after your RRSP and TFSA are full); It`s selling an investment that is worth less than when you bought it, and that loss can cancel out the exact same amount in capital gains at some point in the future, whenever you decide to use the loss. (With a buy-hold for long term, it`s not always that useful)

I personally wouldn`t put something with bonds in the TFSA, I`d go 100% stocks, since it should be returning the most, and that`s more income I want to be tax-free. Put bonds in your RRSP!

Good point, I have 30% bonds in my TFSA because it was the first account I started contributing to and had a fairly conservative mindset with my relatively small nest egg. I should probably look at my allocation more closely now that I have a bit more of an RRSP built up.

Lews Therin

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Re: Canada TFSA
« Reply #6 on: April 13, 2018, 05:00:49 PM »
Withholding: Meh, it's a tiny portion. The tax-free portion > withholding taxes. Atleast that's how I see it.

daverobev

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Re: Canada TFSA
« Reply #7 on: April 13, 2018, 05:19:16 PM »
Withholding: Meh, it's a tiny portion. The tax-free portion > withholding taxes. Atleast that's how I see it.

You'd be surprised. Theoretical numbers: Invest $100k over 25 years with a 6% rate of return; have a MER of 0.2%; and then add another 0.3% which is basically what happens if you hold a US fund in your TFSA, or put a Canadian ETF holding US equities in your RRSP:

http://buyupside.com/calculators/feesdec07.htm

If you put $100k, no fees except the Annual Operating Fee at 0.2%, 6% return over 25 years you lose just under 5% of the theoretical return.

Change the A O F to 0.5% and you lose just under 12%. You have $378.5k rather than $408k at the end - nearly $30k difference.

If you do it with a 'cheap' mutual fund you lose 22%. One of the ones the banks would love you to buy and it is scary - nearly 50%.

It really makes me think.

Lews Therin

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Re: Canada TFSA
« Reply #8 on: April 13, 2018, 05:30:22 PM »
Withholding: Meh, it's a tiny portion. The tax-free portion > withholding taxes. Atleast that's how I see it.

You'd be surprised. Theoretical numbers: Invest $100k over 25 years with a 6% rate of return; have a MER of 0.2%; and then add another 0.3% which is basically what happens if you hold a US fund in your TFSA, or put a Canadian ETF holding US equities in your RRSP:

http://buyupside.com/calculators/feesdec07.htm

If you put $100k, no fees except the Annual Operating Fee at 0.2%, 6% return over 25 years you lose just under 5% of the theoretical return.

Change the A O F to 0.5% and you lose just under 12%. You have $378.5k rather than $408k at the end - nearly $30k difference.

If you do it with a 'cheap' mutual fund you lose 22%. One of the ones the banks would love you to buy and it is scary - nearly 50%.

It really makes me think.

On the other hand, you will never pay taxes on the 378.5k, nor have you paid any on the profit.

Hard to take the 400k out of a RRSP without paying 30k worth of taxes.

(While having to lose the withholding is a bummer, it's still better than paying taxes on everything.)

Of course, if you go all canadian, you don't pay taxes, but have all your tax-free money in a single market. So choices, choices.

daverobev

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Re: Canada TFSA
« Reply #9 on: April 13, 2018, 06:33:39 PM »
Withholding: Meh, it's a tiny portion. The tax-free portion > withholding taxes. Atleast that's how I see it.

You'd be surprised. Theoretical numbers: Invest $100k over 25 years with a 6% rate of return; have a MER of 0.2%; and then add another 0.3% which is basically what happens if you hold a US fund in your TFSA, or put a Canadian ETF holding US equities in your RRSP:

http://buyupside.com/calculators/feesdec07.htm

If you put $100k, no fees except the Annual Operating Fee at 0.2%, 6% return over 25 years you lose just under 5% of the theoretical return.

Change the A O F to 0.5% and you lose just under 12%. You have $378.5k rather than $408k at the end - nearly $30k difference.

If you do it with a 'cheap' mutual fund you lose 22%. One of the ones the banks would love you to buy and it is scary - nearly 50%.

It really makes me think.

On the other hand, you will never pay taxes on the 378.5k, nor have you paid any on the profit.

Hard to take the 400k out of a RRSP without paying 30k worth of taxes.

(While having to lose the withholding is a bummer, it's still better than paying taxes on everything.)

Of course, if you go all canadian, you don't pay taxes, but have all your tax-free money in a single market. So choices, choices.

Oh, I'm not suggesting not to use the TFSA, not at all.

I'm saying putting ZEA in your TFSA, VTI in your RRSP, and VCN unregistered makes most sense.

That is - a Canadian ETF that holds foreign (non-US) stocks directly in the TFSA; VTI, which is US domiciled, in the RRSP; and Canadian unregistered due to the dividend tax credit.

Lews Therin

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Re: Canada TFSA
« Reply #10 on: April 13, 2018, 06:37:32 PM »
Sounds logical. No foreign withholding in ZEA? it's just a US thing?

daverobev

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Re: Canada TFSA
« Reply #11 on: April 14, 2018, 07:16:17 AM »
Sounds logical. No foreign withholding in ZEA? it's just a US thing?

Depends on the country. There is none for the UK, which makes up a good part of ZEA's divis.

http://taxsummaries.pwc.com/ID/Withholding-tax-(WHT)-rates gives the non-double taxation agreement rates; if you drill down per country you'll see the DTA rates. 15% seems fairly common.

RichMoose

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Re: Canada TFSA
« Reply #12 on: April 14, 2018, 10:43:35 PM »
Hi guys,
I decided to open a new TFSA account with questtrade due to replies from the case study I posted earlier this week.
I have the capital to max the TFSA contribution to 57500 right away.

Right now, I'm not sure between the VGRO one-fund vanguard portfolio or mixing VCN/VXC (20/80).

However, I'm a bit confused with the withholding tax. Should I even bother ?
I know I will lose some money due to this tax in a TFSA account.
The Canadian market seem to have low returns compared to US/World so is the withholding tax worth considering ?


Thanks for your help, I'm really confused now :)
What's your risk tolerance? And how much work do you want to put into your investments?
You're comparing an 80% stock portfolio product to 2 ETFs with no bonds.

VGRO/VBAL are great products and it does't get any easier. Unless you're an extremely disciplined investor you should ignore the withholding tax drama. If you're like 95% of investors out there you're far more likely to lose 0.2% (or more) on bad market timing. The mention about Canadian returns vs world returns probably proves my point here.

Unless you are invested only in Canadian stocks and Canadian bonds, you will always lose some money to withholding tax in a TFSA.

Intrigue

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Re: Canada TFSA
« Reply #13 on: April 15, 2018, 05:45:39 AM »
My risk tolerence is medium.
Since I'm not an investment kingpin, I do not want to put too much work into this considering I'm a newbie and I'll likely do more mistakes trying to be smart.
Per my case study, (https://forum.mrmoneymustache.com/case-studies/canadian-case-study-34-yrs-old/) I should be able to retire soon if I invest my money instead of letting it sleep like I am doing now.

The more I read, the more confused I get, lol.

According to couch potato, I should put this in my TFSA:  iShares S&P/TSX Capped REIT (XRE)
According to replies here, I should put it in ZEA.

Or maybe VGRO but I did not understand this quote from @daverobev
Quote
They have an odd selection of bonds; pretty much everywhere else suggests only holding bonds from the country you want to retire in. Worse, the bonds are hedged to Canadian dollars.

daverobev

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Re: Canada TFSA
« Reply #14 on: April 15, 2018, 08:01:16 AM »
My risk tolerence is medium.
Since I'm not an investment kingpin, I do not want to put too much work into this considering I'm a newbie and I'll likely do more mistakes trying to be smart.
Per my case study, (https://forum.mrmoneymustache.com/case-studies/canadian-case-study-34-yrs-old/) I should be able to retire soon if I invest my money instead of letting it sleep like I am doing now.

The more I read, the more confused I get, lol.

According to couch potato, I should put this in my TFSA:  iShares S&P/TSX Capped REIT (XRE)
According to replies here, I should put it in ZEA.

Or maybe VGRO but I did not understand this quote from @daverobev
Quote
They have an odd selection of bonds; pretty much everywhere else suggests only holding bonds from the country you want to retire in. Worse, the bonds are hedged to Canadian dollars.

No, no XRE. That is not required for someone that describes themselves as you do. It is real estate; that is already covered in the broad market. If you want some that's cool, but it is far from required.

Most standard portfolios say: get your fixed income (bonds) in the currency of the country you are going to retire in. VGRO and VBAL have foreign bonds, hedged to Canadian dollars. It is a little odd.

You are absolutely fine filling every account with VBAL or VGRO, and forgetting about it. Putting VTI in your RRSP, ZEA in your TFSA, VCN or whatever unregistered means you will save 0.3% a year or so on those funds. It does make a difference over long periods but for simplicity's sake you will be absolutely fine with VBAL or VGRO.

Canadian Couch Potato says roughly 50% US, 25% Canada, 25% rest of world for your stock part, and Canadian bonds for the bonds part. VBAL is 40% bonds, then the rest split between equities pretty much as above. VGRO only has 20% bonds. Actually I think these two ETFs hold more like 1/3 of the equity section as Canada. It 'doesn't matter' because you're holding long term, they do the rebalancing.

It is 'not optimal' but it is pretty good. You just need to work out how much you want in bonds. At your age I would not want 40% fixed; I doubt I'd ever want 40% fixed. VGRO is a great choice, IMHO. I would probably go the more efficient route (VTI in an RRSP, ZEA TFSA, everything else to fit my asset allocation unregistered) because it is more efficient, and again because over time it compounds. In your 30s you have probably 50 years to go!

RichMoose

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Re: Canada TFSA
« Reply #15 on: April 15, 2018, 05:25:50 PM »
Most standard portfolios say: get your fixed income (bonds) in the currency of the country you are going to retire in. VGRO and VBAL have foreign bonds, hedged to Canadian dollars. It is a little odd.

You are absolutely fine filling every account with VBAL or VGRO, and forgetting about it. Putting VTI in your RRSP, ZEA in your TFSA, VCN or whatever unregistered means you will save 0.3% a year or so on those funds. It does make a difference over long periods but for simplicity's sake you will be absolutely fine with VBAL or VGRO.
Hedged foreign bonds is typically the best way to buy them for the longer term holdings. Hedging costs have become very cheap and the strategies are much better. By hedging the bonds you get foreign diversification without the currency risk.

Not sure where you obtained the 0.3% withholding tax cost from, can you share the source? I'm not sure if Justin Bender made mistakes on his calculations, but he suggests the cost will be no higher than 0.18% when held in a TFSA. If you extrapolate that to impact on the TFSA only, the total impact on a full portfolio with multiple accounts will be much lower than 0.18%. However, that probably only will apply once @Intrigue sells his house and fills RRSP & NR accounts.
https://cdn.canadianportfoliomanagerblog.com/wp-content/uploads/2018/02/Vanguard-Asset-Allocation-ETFs.pdf

daverobev

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Re: Canada TFSA
« Reply #16 on: April 15, 2018, 05:36:42 PM »
Most standard portfolios say: get your fixed income (bonds) in the currency of the country you are going to retire in. VGRO and VBAL have foreign bonds, hedged to Canadian dollars. It is a little odd.

You are absolutely fine filling every account with VBAL or VGRO, and forgetting about it. Putting VTI in your RRSP, ZEA in your TFSA, VCN or whatever unregistered means you will save 0.3% a year or so on those funds. It does make a difference over long periods but for simplicity's sake you will be absolutely fine with VBAL or VGRO.
Hedged foreign bonds is typically the best way to buy them for the longer term holdings. Hedging costs have become very cheap and the strategies are much better. By hedging the bonds you get foreign diversification without the currency risk.

Not sure where you obtained the 0.3% withholding tax cost from, can you share the source? I'm not sure if Justin Bender made mistakes on his calculations, but he suggests the cost will be no higher than 0.18% when held in a TFSA. If you extrapolate that to impact on the TFSA only, the total impact on a full portfolio with multiple accounts will be much lower than 0.18%. However, that probably only will apply once @Intrigue sells his house and fills RRSP & NR accounts.
https://cdn.canadianportfoliomanagerblog.com/wp-content/uploads/2018/02/Vanguard-Asset-Allocation-ETFs.pdf

I just don't know why you'd want to hold foreign bonds, hedged to CAD. Currency neutral are you going to get higher returns over a long period? Are you reducing the risk of the Canadian government going bankrupt?

2% yield; 15% withholding. Those are the assumptions I'm using to get 0.3%. 15% of 2% is 0.3%.

Edit: I wasn't clear with my wording. 0.3% on the relevant parts of the portfolio. So, US stocks/ETFs held in a TFSA, or in an RRSP when wrapped in a Canadian domiciled ETF. Not on Canadian bonds or equities. Variable on rest of world stuff, depending on tax agreements.
« Last Edit: April 15, 2018, 05:39:51 PM by daverobev »

RichMoose

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Re: Canada TFSA
« Reply #17 on: April 16, 2018, 10:57:24 AM »
2% yield; 15% withholding. Those are the assumptions I'm using to get 0.3%. 15% of 2% is 0.3%.

Edit: I wasn't clear with my wording. 0.3% on the relevant parts of the portfolio. So, US stocks/ETFs held in a TFSA, or in an RRSP when wrapped in a Canadian domiciled ETF. Not on Canadian bonds or equities. Variable on rest of world stuff, depending on tax agreements.
Don't forget that 35-48% of these portfolio ETFs are in Canadian stocks/bonds and not subject to withholding taxes.

max9505672

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Re: Canada TFSA
« Reply #18 on: April 16, 2018, 12:40:19 PM »
I'm saying putting ZEA in your TFSA, VTI in your RRSP, and VCN unregistered makes most sense.

That is - a Canadian ETF that holds foreign (non-US) stocks directly in the TFSA; VTI, which is US domiciled, in the RRSP; and Canadian unregistered due to the dividend tax credit.
That's pretty much what I have : VTI in RRSP, VCN in un-registered, but I have XAW in TFSA for international exposure. But XAW is +/-55% U.S. and 45% int'l.

So I struggle at rebalancing sometimes and I think that having an international only ETF such as ZEA would allow me more flexibility.

Would it be wise to stop buying more XAW for now and replace it with VUN and ZEA?

daverobev

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Re: Canada TFSA
« Reply #19 on: April 16, 2018, 02:28:44 PM »
I'm saying putting ZEA in your TFSA, VTI in your RRSP, and VCN unregistered makes most sense.

That is - a Canadian ETF that holds foreign (non-US) stocks directly in the TFSA; VTI, which is US domiciled, in the RRSP; and Canadian unregistered due to the dividend tax credit.
That's pretty much what I have : VTI in RRSP, VCN in un-registered, but I have XAW in TFSA for international exposure. But XAW is +/-55% U.S. and 45% int'l.

So I struggle at rebalancing sometimes and I think that having an international only ETF such as ZEA would allow me more flexibility.

Would it be wise to stop buying more XAW for now and replace it with VUN and ZEA?

Are you at your target allocation? You're with Questrade? I think XAW is a bit more than US + EAFE - ie, it has developing in it. ZEA is just Japan, developed Europe, and Australia, pretty much. I'd say this is pretty minor stuff - don't fret it.

Intrigue

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Re: Canada TFSA
« Reply #20 on: April 16, 2018, 08:36:03 PM »
I have a few more newbie questions :
The TFSA limit is 57500$ right now. If I buy 57500$ worth of VGRO stock today, do I have to reinvest the dividends I will receive quarterly or is it done automatically ?

If I have to do it manually, do they count towards the TFSA limit meaning I'll have to invest the dividends elsewhere ?

Thanks !

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Re: Canada TFSA
« Reply #21 on: April 16, 2018, 09:36:09 PM »
If you enrol  in the dividend reinvestment plan (DRIP) any dividends paid out will automatically be reinvested:

https://www.vanguardcanada.ca/advisors/etfs/drip.htm?lang=en

$5500 is the contribution limit. You do not have to remove capital gains or dividends from the account; that's part of the beauty of the TFSA.

Intrigue

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Re: Canada TFSA
« Reply #22 on: April 17, 2018, 05:44:59 AM »
How can I register DRIP with questtrade ?

I'm playing around with the free account and fake money to practice but I can't find this option.

max9505672

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Re: Canada TFSA
« Reply #23 on: April 17, 2018, 05:57:38 AM »
I'm saying putting ZEA in your TFSA, VTI in your RRSP, and VCN unregistered makes most sense.

That is - a Canadian ETF that holds foreign (non-US) stocks directly in the TFSA; VTI, which is US domiciled, in the RRSP; and Canadian unregistered due to the dividend tax credit.
That's pretty much what I have : VTI in RRSP, VCN in un-registered, but I have XAW in TFSA for international exposure. But XAW is +/-55% U.S. and 45% int'l.

So I struggle at rebalancing sometimes and I think that having an international only ETF such as ZEA would allow me more flexibility.

Would it be wise to stop buying more XAW for now and replace it with VUN and ZEA?

Are you at your target allocation? You're with Questrade? I think XAW is a bit more than US + EAFE - ie, it has developing in it. ZEA is just Japan, developed Europe, and Australia, pretty much. I'd say this is pretty minor stuff - don't fret it.
I am at my asset allocation, +/- 1 or 2%. Yes, I am with Questrade. I'll consider ZEA if I face a situation where I should only buy int'l (without US).

Thanks

max9505672

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Re: Canada TFSA
« Reply #24 on: April 17, 2018, 06:00:09 AM »
How can I register DRIP with questtrade ?

I'm playing around with the free account and fake money to practice but I can't find this option.
  • Login to you account
  • Go to ''Account Management''
  • Go to ''Find Form''
  • CTRL-F ''DRIP''
  • Follow instructions

Le Barbu

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Re: Canada TFSA
« Reply #25 on: April 20, 2018, 05:45:25 AM »
I manage all of my accounts as one big porfolio.

Overall A.A. 30% canadian  stocks, 35% US stocks, 35% international stocks.

RRSP : 30%VTI, 20%VBR, 50%VXUS
RESP : 100% ZCN
TFSA : 100% XAW

My question : for my next TFSA contributions should be in ZEA instead of XAW ? This mean I will let my VXUS decrease over time into RRSP

First, I started TFSA with XAW for simplicity and contributions were small. Now, I have to re-evaluate for the future

Quickman911

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Re: Canada TFSA
« Reply #26 on: April 22, 2018, 10:44:40 PM »
Hi, newb canadian investor here.

I have some money in VGRO in a TFSA. One of my friends told me to invest money in stocks that yield more dividends (ZWA, ZWC, ZWE to be precise).

My question is : how do you calculate which is better?

By comparison :
VGRO - manag. fees 0.20 % but dividends yield only 0.32 % dividends.
ZWE - manag. fees 0.65 % but dividends are 6.87 %.

Some other users have mentionned the Z-series stocks, and I was wondering how to decide which is better. Higher dividends does seem better but I'd rather get another opinion.

Thanks mustachios

daverobev

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Re: Canada TFSA
« Reply #27 on: April 23, 2018, 06:51:51 AM »
Hi, newb canadian investor here.

I have some money in VGRO in a TFSA. One of my friends told me to invest money in stocks that yield more dividends (ZWA, ZWC, ZWE to be precise).

My question is : how do you calculate which is better?

By comparison :
VGRO - manag. fees 0.20 % but dividends yield only 0.32 % dividends.
ZWE - manag. fees 0.65 % but dividends are 6.87 %.

Some other users have mentionned the Z-series stocks, and I was wondering how to decide which is better. Higher dividends does seem better but I'd rather get another opinion.

Thanks mustachios

VGRO invests in the world. The whole world. You can buy that and nothing else and be just fine.

ZWE is *Europe, High Dividend, Covered Call, Hedged to CAD* Holy fuck.

No novice wants to go anywhere near the latter.

Z-'series' is not a series, it just tends to be that BMO's ETFs start with a Z, just like Vanguard ones start with a V, a lot of original iShares/Blackrock ones start with X. You can get 'good' BMO ETFs like ZEA, and 'bad' ones - from a Couch Potato/lazy investor perspective - like ZWE.

VGRO is new, I doubt the yield will be that low. Probably more like 2%, 2.5% going forward.

Yield is nice but not necessary in retirement. Yield is (usually) money a company gives back to shareholders. ZWE is nothing like that, it is BMO trying to make money using covered calls (advanced trading stuff). Instead of yield, instead of a company paying a dividend, you can just sell a small fraction of the shares you own in retirement. Before retirement, you don't need income, so you'll just reinvest that money.

Le Barbu

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Re: Canada TFSA
« Reply #28 on: June 30, 2018, 11:59:01 AM »
What is best between ZEA and VIU into TFSA to increase Intl exposure?

I also think about VEE for an emerging tilt...

daverobev

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Re: Canada TFSA
« Reply #29 on: June 30, 2018, 01:40:41 PM »
I know ZEA holds stuff directly, so it is good enough for me. I think all the international ones are ~0.2%.

One thing to check for emerging is whether they consider South Korea emerging or not. So if you go with different providers (of the index, I guess, not necessarily the company managing the ETF even!), check you aren't either a) getting SK (for example) in both int'l AND emerging or b) in neither.

Honestly the amount of China in EM funds is a bit worrying. Not too long ago China was excluded, now it seems to be 40%.

Le Barbu

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Re: Canada TFSA
« Reply #30 on: July 01, 2018, 03:32:32 PM »
I know ZEA holds stuff directly, so it is good enough for me. I think all the international ones are ~0.2%.

One thing to check for emerging is whether they consider South Korea emerging or not. So if you go with different providers (of the index, I guess, not necessarily the company managing the ETF even!), check you aren't either a) getting SK (for example) in both int'l AND emerging or b) in neither.

Honestly the amount of China in EM funds is a bit worrying. Not too long ago China was excluded, now it seems to be 40%.

Thank you, after looking at both ZEA and VIU, the later seams better for me. SK is included and stocks are held directly. I think I will keep my exposure to EM through VXUS into RRSP for now.

Le Barbu

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Re: Canada TFSA
« Reply #31 on: July 20, 2019, 12:01:19 PM »
I manage all of my accounts as one big porfolio.

Overall A.A. 30% canadian  stocks, 35% US stocks, 35% international stocks.

RRSP : 30%VTI, 20%VBR, 50%VXUS
RESP : 100% ZCN
TFSA : 100% XAW

My question : for my next TFSA contributions should be in ZEA instead of XAW ? This mean I will let my VXUS decrease over time into RRSP

First, I started TFSA with XAW for simplicity and contributions were small. Now, I have to re-evaluate for the future


Update

Overall A.A. 27% canadian  stocks, 38% US stocks, 35% international stocks.

RRSP : 35%VTI, 20%VBR, 45%VXUS
RESP : 100% ZCN
TFSA : 100% VIU
Taxable : 100% ZCN

My question : does anyone can challenge my asset allocation or ETFs choices?
« Last Edit: July 21, 2019, 11:48:04 AM by Le Barbu »