Best method for handling volatility in the market

[Butler1000]

I understand your thinking. A lot of very bright investors buy Canadian banks for same reason as the banks are safe monthly income but my thoughts are in the long term so I stay in S&P for the higher growth potential

TSFA also means capital gains are not taxed

I enjoy our discussion

Retirement is imo about various income streams to balance. I will have CPP, OAS, and a defined pension. Then RRSPs, TFSAs and regular investment accounts. So I will need to balance the income with tax events in drawing down RRSPs into RRIFs, placing some into TFSA's to up the tax free cash and making sure it all comes out without the taxman looking sideways at me.

Its funny I saw something recently where only about 16% of Canadians go into retirement with 500,000 in investments. That is likely where I will be before the house downsize so I'm feeling confident.

A safe 4%-5% will happily see to my needs.

 

[Zoot Allures]

Retirement is imo about various income streams to balance. I will have CPP, OAS, and a defined pension. Then RRSPs, TFSAs and regular investment accounts. So I will need to balance the income with tax events in drawing down RRSPs into RRIFs, placing some into TFSA's to up the tax free cash and making sure it all comes out without the taxman looking sideways at me.

Its funny I saw something recently where only about 16% of Canadians go into retirement with 500,000 in investments. That is likely where I will be before the house downsize so I'm feeling confident.

A safe 4%-5% will happily see to my needs.

I, too, but I never bought a house, invested in the market instead. OAS very little as my income disqualifies it. Never bought expensive car, went some years without one just rented one for weekends.

We also have OHIP. My pensions are all indexed to inflation. I will never use up all my savings as my pensions cover me.

 

[Butler1000]

I, too, but I never bought a house, invested in the market instead. OAS very little as my income disqualifies it. Never bought expensive car, went some years without one just rented one for weekends.

We also have OHIP. My pensions are all indexed to inflation. I will never use up all my savings as my pensions cover me.

We got in before the big rise and with a family discount so we are looking at a 5x profit after taking into account the upgrades we did. Mortgage is clear. We will be debt free in a few more months. Brand new Toyota in the driveway. Our pensions well cover monthly as well. But we want to travel, and have options for months abroad. So that's why we will need more.

Also you might want to take into account elder care for yourself. And it isn't cheap. Once you hit 75 shit can happen that can drain you out. Thats why I'm planning for stocking up on savings and lots of income buckets.

 

[Zoot Allures]

Are your pensions indexed to inflation? Government pensions are but a lot of private ones are not. Mine is. That is called golden parachute

We have Trinity health care that covers a lot of expensive stuff like new knees etc

As far as house goes I never wanted the stress.

Invest in market. 10% growth with growth on growth for 30 years


FV=P⋅(1+r)n−1r

the magic formula means


you got 1.6 million and could easily save more than 10K but savings are not forced


20k = 3.3 million etc

but a house is leveraged as you now own a million dollar house for only 200 K so it seems a personal choice

I have 1.5 million plus pensions and no debt but I could of had more

 

[Butler1000]

The private one isn't as it was finished and sent to an insurance company. But I now get 10% rrsp from my employer plus another 4% match so 18% all together. Its adding up. Im also topping up some previous room and just adding to savings and trickling is to other things.

No Healthcare after but I'm not too concerned about it.

The house hasn't been a huge stress. Usual repair stuff, cosmetic renos. The fact the capital gains will be tax free is a big bonus when we downsize.

I'm just waiting to see what the world is like in a few years to see if I go for early retirement or not. I can't remember this volatility in the world in my lifetime. I won't take CPP early so Its about lasting those years until the three hit (private pension, CPP, OAS) which will represent decent chunk of my monthly income.

Job is easy so not hating it. And my health is very good at this point so I don't feel a clock ticking yet. We want to travel so those extra years working instead of drawing down will make a big difference.

 

[HungSowel]

If I could start fresh with my non reg, I think I would just hold 70 percent XEQT and 30 percent in gold, silver, bitcoin, and REITs.

I do not have the stomach to take the capital gains tax to rearrange my portfolio.

 

[Mandala]

If I could start fresh with my non reg, I think I would just hold 70 percent XEQT and 30 percent in gold, silver, bitcoin, and REITs.

I do not have the stomach to take the capital gains tax to rearrange my portfolio.

I think you are saying you do not want to cash in your taxable capital to put that money into registered account

You are correct . That tax you pay no longer gets reinvested every year which is a greater loss than the tax

 

[speakercontrols]

The big concern for any investor is a big downturn of 30%+

How do you weather the storm without selling as prices fall then buying back in when prices rise IE selling low and buying high?


My thoughts are put enough monies into a safe investment that you can use for anticipated expenses over 5 years as a that is a reasonable time for market cycle to compete itself

Puts

 

[Mandala]

Puts

long put or short put?

• The Buyer (Long Put): Pays a fee (called a premium) for the right to sell the stock at the strike price. They are betting the stock price will go down.
• The Seller (Short Put): Receives the premium and takes on the obligation to buy the stock at the strike price if the buyer decides to exercise the option. They are betting the stock price will go up or stay flat.

 

[LiveInTorontoPartyInMontreal]

Sorry, I didn't read the full post. But, I pick a Nasdaq tech stock that has lots of volatility. On the rallies up, I sell a touch OTM strike call option.When it pulls back, I cover it and buy it back. On weakness, I sell a put just a bit OTM . During the rallies back , I cover and buy the put back. The system is not 100% but Nasdaq is pretty volatile the last year. Stocks like Tesla, Microstrategy, Nvdia and PLTR work just fine.

 

[S416905]

Dollar cost average

 

[HungSowel]

The best method for handling volatility is not to check in on your investments.