Author Topic: Canadian Investment  (Read 2751 times)

Omar

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Canadian Investment
« on: October 18, 2013, 04:56:10 PM »
Hello,

I am setting up stock options for my work matched RRSP account and I am completely lost.
can someone please give me some advice on where to put my hard earned $$$

I know MMM recommends Index funds, but which ones?

The list of options is attached.

KMMK

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Re: Canadian Investment
« Reply #1 on: October 18, 2013, 05:58:36 PM »
Have you checked out the Canadian Couch Potato website? There is a basic index fund portfolio that is a handy reference. I think you can access it from the frequent use links at the top.

And then look back at your employer offering sheet. You'll notice that the funds that most closely match the basic portfolio are also the ones showing the lowest fees. I assume they are letting you pick and chose and do different percentages off of that list. Basically you'll do the Canadian Equity Index, Can Bond Index, US Equity Index and International Equity Index, but the Couch Potato website (and some posters here I'm sure) will explain it better than I.

Omar

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Re: Canadian Investment
« Reply #2 on: October 18, 2013, 06:30:51 PM »
I haven't heard of couch potato before, ill take a look
Thank you.

daverobev

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Re: Canadian Investment
« Reply #3 on: October 18, 2013, 06:48:45 PM »
Looking at that pdf, I would guess (or suggest) you want:

7132 - Canada
8322 - US
8321 - International
4191 - Bond

Key things to look for - the word 'index' and the management fee (IMF%) - these four are all significantly under 1% so pretty good.

If you're looking at Canadian Couch potato, I'm guessing these will be roughly the equivalent of Option 2 here: http://canadiancouchpotato.com/model-portfolios/ - not *as* cheap but not bad. I mean, you're still paying 0.4% more than with TD but if these are the options you have, those 4 funds are ok! Especially with an employer match! Yum.

Omar

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Re: Canadian Investment
« Reply #4 on: October 19, 2013, 10:42:49 AM »
I have full control over how much money goes where and at what percentages. As long as my choices are from that pdf.

The information you all gave has been immensely helpful!

Thank you all very much, ill let you know if I have any more questions.

Kazimieras

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Re: Canadian Investment
« Reply #5 on: October 21, 2013, 09:55:31 AM »
Omar, do you know what your vesting period is with respect to the money your company contributes?

The reason I ask is that the IMFs (or MERs) are quite high and you can likely do better. An idea may be to keep the money in the matching funds that are offered, but once the vesting period expires, withdraw it and put it into your own fund like a Vanguard, etc. that has a lesser expense cost.

Omar

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Re: Canadian Investment
« Reply #6 on: October 21, 2013, 10:25:49 AM »
i believe the vesting period is 2 years.

Thank you everyone for the suggestions.
I think I came up with something that should work.

Cheers,