Author Topic: Started indexing, transitioning from stock picking  (Read 1642 times)

YoungInvestor

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Started indexing, transitioning from stock picking
« on: November 19, 2017, 02:04:34 PM »
At 25, I have seen the light after about three years of stock picking.

When I started, I made sure to set up a "comparison" account in Google finance. Since I started, I am up over that benchmark by a (very) small amount, so I do consider myself lucky. My mentality was that if I ever started lagging the index I would stop, and I think I'm reaching that point over 2017.

I took this chance to diversify my holdings from mostly Canadian companies to include a lot more international stocks. Basically, I'm targeting:

35% US - XUU
25% International Developed - XEF
20% CDN - XIC (I'm still unloading some individual stocks as the DRIPs come through)
10% Emerging Markets
10% REITs

Everything is in a (about 75% full) TFSA. Other accounts are detailed below.

In addition to that, I have a 6 months EF in a savings account earning 0.75%.

My defined contribution plan and RRSP through work are both 80/20 equities/bonds. A bit heavy on the Canadian stocks for my taste, but I don't have much control and the pension match is great (>100%). The RRSP balance is still too low to switch over to my brokerage (low contribution limits due to the high amounts going to the pension fund), but I plan on replicating the AA above in it once it crosses about 20 000$, which should be mid-to-late 2018..

Any thoughts/oversights you've noticed? Any particular tips? Would you keep the same AA in taxable accounts when I max the tax-sheltered accounts next year? Should different components go in different types of accounts?

Thank you!

DavidAnnArbor

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Re: Started indexing, transitioning from stock picking
« Reply #1 on: November 21, 2017, 03:26:49 PM »
It looks well diversified. That's a lot of REITS. Are they Canadian REITS or International mix ?

JAYSLOL

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Re: Started indexing, transitioning from stock picking
« Reply #2 on: November 21, 2017, 11:43:00 PM »
It looks well diversified. That's a lot of REITS. Are they Canadian REITS or International mix ?

I was wondering the same about the REITS.  Overall, looks very good.  It's refreshing to see a post where the OP has had some success with stock picking, but doesn't have an ego about it and chooses the humble option of indexing instead.  Bravo

boarder42

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Re: Started indexing, transitioning from stock picking
« Reply #3 on: November 22, 2017, 04:53:20 AM »
Welcome. Glad you saw the light early. It took me 17 years to see the light. Though I started picking at 10. And quit at 27.

YoungInvestor

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Re: Started indexing, transitioning from stock picking
« Reply #4 on: November 22, 2017, 05:19:36 AM »
It looks well diversified. That's a lot of REITS. Are they Canadian REITS or International mix ?

It was international REITs. Fees were a bit steep for those - 0.71%.

So I was operating under the assumption that REITs were excluded from an equity index, whereas I now see they are not. I think I will just up the us/developed by 5% each to 40/30 and simplify even further, which will get me to a cleaner 40 US/30 Dev/20 Can/10 Emerging. Fees will also be a lot lower overall.

Thanks!

NoStacheOhio

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Re: Started indexing, transitioning from stock picking
« Reply #5 on: November 22, 2017, 07:25:13 AM »
If you're in Canada, this might be some good reading: http://canadiancouchpotato.com/model-portfolios-2/