Terrified but ready to make the plunge 100,000 Updated!

[SweetLife]

Ok MMM investment gurus ...

I am looking at
50% XAW
25% ZAG
25% VCN[color=green][/color]

(taken from Couch potato table attached) and Money sense article AND so much info from here...

FOR MY $100,000

Does this seem reasonable ??? Can all of these things go into RRSP? Are some better in TFSA? Or Taxable?

I have some more money to put away too starting with my TFSA but I am not sure how much yet the $100,000 is a given so I want to get that socked away ASAP...


Omg I feel slightly sick to my stomach to think I am going to put that much money in RRSP's (but I have to, I need to offset $100,000 in capital gains and that seems the best way to do it according to my CPA) My pension won't be huge so taking the hit on taking the money out when I retire will be less than what I am making now.

I need some reassurance ... anyone???

Ok I am in for $15,000 so far... question now .... DIVIDENDS ... do they just go back into your account? So just buy more stock as you go along???

[human]

We're all different so hard to judge. Personally I'm 85% VXC and 15% VCN without bonds at all.

At least I am now, I started off with VUN and VDU and was going to get VEE and decided VXC was easier.

XEF doesn't seem to have emerging markets, not sure if that matters to you.

What really matters is sticking to your allocation, I still have some VUN and VDU but I am committed to VXC and VCN only now.

I'm surprised you have so much room in your RRSP if you have some money on hand to put in. I can't really give advice on which should go where, I don't worry too much about it since I don't have bonds at all.

I just wanted to chime in and so go for it but stick with it.

[Mighty-Dollar]

Terrified but ready to make the plunge 100,000

Terrified but investing 100% in stocks -- No bonds. Now that's a contradiction!

[human]

Terrified but ready to make the plunge 100,000

Terrified but investing 100% in stocks -- No bonds. Now that's a contradiction!

Huh? ZAG is a bond etf, I'm not getting your joke . . .

[thriftyc]

I am in 50% XAW, 25% VCN and 25% ZAG- over 800k worth.   Not a fear in the world.   I am in this till I die, and accept ups and downs of the market over time.

Hear are 2 famous quotes to help you stay sane:
"Stay the Course"  - Jack Bogle (Founder of Vanguard)
"Be fearful when others are greedy, greedy when others are fearful" - Warren Buffett   

Keep to your allocation and rebalance once a year (making you greedy when others are fearful)

[SweetLife]

Thanks for the replies all...

Thriftycanadian where did you get your allocation or did you just make that decision Do you have it all in RRSP I have to put the first $100 000 in RRSP and then TFSA after that ... How long have you held this AA???


 I am starting out so late in life and really trying to absorb all the info I can but I feel like I am running out of time!!! I want to buy and rebalance once a year... I realize there are no magic formulas that I may lose/gain and that I have to stay the course and that is ok. 

[Dicey]

Dear SweetLife,
The market is ALWAYS moving. It can either go up or down. It will do both many, many times in your lifetime. Expect this, embrace this, and you will be fine.
XO,
Dicey

[SweetLife]

Dear SweetLife,
The market is ALWAYS moving. It can either go up or down. It will do both many, many times in your lifetime. Expect this, embrace this, and you will be fine.
XO,
Dicey

Thanks Dicey ... I'm sure once I take the plunge I will feel less pressure lol... until then though, I am sure my blood pressure is skyrocketing lol...

[thriftyc]

Thanks for the replies all...

Thriftycanadian where did you get your allocation or did you just make that decision Do you have it all in RRSP I have to put the first $100 000 in RRSP and then TFSA after that ... How long have you held this AA???


 I am starting out so late in life and really trying to absorb all the info I can but I feel like I am running out of time!!! I want to buy and rebalance once a year... I realize there are no magic formulas that I may lose/gain and that I have to stay the course and that is ok.

My allocation is the sum of all my holdings combined across rrsp's, tfsa and non registered.    Most of my VCN is in my non registered, TFSA hold XAW and RRSP holds Bonds, XAW.

My allocation went as follows:  My first 10 years of saving (first 400k) was in 100% stocks, then switched to 60/40 stocks/bonds for about 5 years.  Just recently I have gotten more assertive and gone 75/25 stocks/bonds.

[SweetLife]

Ok I did it ... my first $15,000 in RRSP ... another $85,000 to go ... I know I should do it all at once but I want to have the most of my investment in my new credit union ($8.88 a trade instead of $9.99 at Scotiabank)...

Will get it done before the next week is out.

Took the plunge ... water is a little icy so far but should warm up ...

[SweetLife]

So excited ... I was rooting around trying to see what the Ontario Teacher's Pension invests in ... (they are super-investors and are making lots of $$$ - 175.6 BILLION) I was thrilled to see that they own quite a chunk of XAW!!!!
CORPORATE SHARES/UNITS OVER $150 MILLION
As at December 31, 2016 (millions)
Security Name Shares Fair Value
iShares MSCI Emerging Markets Index 37.5 1,755.4

So at least my XAW 50% allocation is teacher-approved lol...

[SweetLife]

Why I don't watch TV:

(At work) just passed a TV that was showing a news report from today stating that Trump is saying he may opt out of NAFTA .... because Canada and Mexico are being "difficult" ...

I can't even wrap my head around the repercussions of a trashed NAFTA !

 

[thriftyc]

Why I don't watch TV:

(At work) just passed a TV that was showing a news report from today stating that Trump is saying he may opt out of NAFTA .... because Canada and Mexico are being "difficult" ...

I can't even wrap my head around the repercussions of a trashed NAFTA !

Ignore the news.  The likes of Apple, Toyota, Canadian Tire, Lablaws, Tesla, Google, Nestle and all the other of thousands of companies in a well diversified index portfolio are not going to stop innovating and doing business of Trump.