TuxedoEagle, thank you to comment. It's really helpful to get someone else opinion to set my mind. MMM readers from Canada are only a few % so...
I already went through MDJ threads, so everything is set to proceed on January 5th. I just wait for 2015 to skip the hassle of tax filling for spring of 2016. In fact, I will not set a complete (real) SM. I just want to buy a 100k$ chunk and then, capitalize the interests and transfer the dividends in my checking account. The LOC is ready (never used and no plan to use it unless to invest or in case of real big emergency). The separate checking account is open and ready, I drawn my "Flow Chart" etc.
I also read all CCP articles concerning Canadian ETF and tax tips. From what I understand, when you decide to work with ETF in taxable account, and especially when it's with borrowed money, there is some details to know. ROC will decrease ACB; capital gain/share will increase ACB etc. It's still manageable since you know where to get information, how to fill tax papers, decrease the loan if needed.
FYI, I held some individual stock in the past but I prefer to stick with broad index ETF and that's why I just try to pick the best for my situation. I will give you more details I it help.
My RRSP : 280K, 30%ZCN, 30%VTI, 10%VBR and 30% VXUS
Wife RRSP : 160K , 35% ZCN, 35% VTI and 30% VXUS
RESP : 70K, 35%RBF556, 35% RBF557 and 30% RBF559
Total : 510K, 32%Can, 32%US broad market, 5% US small-value, 30% international
no bonds, no TFSA (and not real possibility to fill TFSA now because every penny go through RRSP, RESP and mortgage)
Mortgage balance 95K, 5 years remaining with actual schedule. Rate = 3.49% for 2.5 years.
HELOC available 125K increasing 20K/year to top at 220K in October 2019. Rate = prime + 0%
On January 5th, after few transactions, situation would be:
My RRSP : 280K, 0%ZCN, 30%VTI, 40%VBR and 30% VXUS
Wife RRSP : 160K , 35% ZCN, 35% VTI and 30% VXUS
RESP : 70K, 35%RBF556, 35% RBF557 and 30% RBF559
Taxable : 100K, 100%Canadian index ETF (VCN, ZCN or XIC)
Total : 610K, 30%Can, 27%US broad market, 18% US small-value, 25% international
It's only 5 transactions, increase my tilt toward US small-value, increase MER by 80$/year (but lower average MER from 0.17% to 0.15%)
Leverage would be 15% on investment and 20% overall (house value is 340K)
No other debt and no plan to get any, for anything. I buy used and pay cash whenever possible except for food and underwear ;-)
Gross income 80K and wife 30K.
2 sons: 11 and 7 now
Max out RRSP and RESP every single year since 1997 and never get worry with markets (2002-2003, 2007-2008)
I find Vanguard's and BMO's distributions statement pretty clear and complete to manage everything else (taxes, cash transfer etc) but now, I think Vanguard is ahead for 2013, they just have eligible dividends and a trivial capital gain that will increase ROC. Don't know if they will continue that way.
My FIRE plan is to be FI in about 5-10 years and when sons gets older, we could buy some fixer-upper and then rent or resale, who know ?
That's why I would probably stick to 100k$ + capitalized interests. From my assumptions, it should be pretty close of investment value on the long run (over 10-15 years). The capital gain will also be merely taxed if I sell with lower incomes.
I read some of your posts from time to time and will appreciate further comments. Thanks!