Is it worth doing it outside of an RRSP (TFSA and non-reg.) or keeping VUN or other is fine?
The $100K is totally arbitrary. You can settle on $25K, $50K, $75K...whatever makes sense to you. I am lazy so going through the hassle of Norbert's Gambit [NG] for a small amount doesn't seem worth it and as I mentioned I am close-ish to FIRE so I may in fact never do another NG going from VUN to VTI since I need some CAD$$ to spend relatively soon.
The two benefits of VTI over VUN are:
1. MER - VTI = 0.05% & VUN = 0.16% so a 0.11% savings with VTI [not nothing, but in the big picture not a lot of $$]
2. Withholding tax on dividends = 0.3% - 0.43% per year [starts to add up to some real $$]
Where you get the benefits
- All accounts = MER savings
- RRSP - withholding tax not deducted automatically
- TFSA - withholding tax deducted and no way to claim back
- Non-Reg - withholding tax deducted, but you can claim on your CRA return and get credit for taxes paid
So I hold VTI in my RRSP. I also hold VCN only in my Non-Reg so that leaves RRSP or TFSA for any VUN. Because of my age I have a much bigger RRSP than TFSA/Non-Reg. So I have lots of room to hold various assets there and I have to spend down my RRSP aggressively at the start of FIRE or I'll end up with large mandatory withdrawals and poorly optimized taxes.