Author Topic: Canadian Investor - Bond Strategy  (Read 665 times)

max9505672

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Canadian Investor - Bond Strategy
« on: November 25, 2019, 07:35:11 AM »
Mustachians,

I am a Canadian investor looking for inputs on my bond strategy. My AA allocation is 90% stocks and 10% bonds. The only bond ETF I currently own is VAB.TO (Canadian Bond). My questions are :

1)  Would there be any reason for me to consider owning another bond ETF? One that wouldn't be tied to Canada for example?
2) I currently own all my bonds in my TFSA, but soon I will have to either own bonds in a non-registered account or sell stocks in my TFSA to make room for bonds. I would prefer to exclusively own tax advantageous stocks in my non-registered (currently only have VCN.TO). So basically, tax-wise, I am wondering if it would is be better to own bonds or non tax advantageous stocks in my non-registered account?

Thanks!

frugal_c

  • Bristles
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Re: Canadian Investor - Bond Strategy
« Reply #1 on: November 25, 2019, 05:04:43 PM »
Hold canadian stocks in your taxable account only, then TFSA RRSP.

Hold non Canadian stocks in rrsp.

canadian bonds in TFSA then RRSP.

raincoast

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Re: Canadian Investor - Bond Strategy
« Reply #2 on: November 25, 2019, 06:03:16 PM »
If you own US-listed stocks or ETFs in an account, it could be useful to have a US-listed bond ETF in that same account to avoid currency conversion when rebalancing, aa you usually lose some money when you convert between currencies.

max9505672

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Re: Canadian Investor - Bond Strategy
« Reply #3 on: November 26, 2019, 01:42:11 PM »
Hold canadian stocks in your taxable account only, then TFSA RRSP.
Done, only VNC.

Hold non Canadian stocks in rrsp.
Done.

canadian bonds in TFSA then RRSP.
Yes, that's the plan. However my TFSA is now full. Unless I sell in my TFSA and buy in my RRSP, but at this point I'd prefer to contribute to my non-taxable...

frugal_c

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Re: Canadian Investor - Bond Strategy
« Reply #4 on: November 27, 2019, 05:48:06 PM »
Is there anything in your TFSA other than bonds?  There is nothing wrong w bonds in rrsp if TFSA is full.

max9505672

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Re: Canadian Investor - Bond Strategy
« Reply #5 on: November 27, 2019, 06:01:51 PM »
Is there anything in your TFSA other than bonds?  There is nothing wrong w bonds in rrsp if TFSA is full.
Yes, bonds is just a small part of my TFSA. Might go with RRSP then.