Investing in mutual funds @ TD bank

[Zoot Allures]

Top 20 stocks in the TSX is my pick list, 4%-5% dividends, never sell and S&P500 when I can.

I am a novice but sounds good

Your claim that you beat 90% of professional money managers in Canadian stock
sounds possible as someone has to be in that percentile

S&P500 gets highest returns over time

Dividend companies are safe or they would not be paying dividends but you pay a premium for them
because everyone wants them even though dividend companies do not outperform solid non dividend companies. Dividend companies do well because they are good companies not because they give dividends. There is no corelation between buying solid companies with dividends and making profit but there is a corelation between buying solid companies and making profit. It makes no sense that solid dividend companies would outperform solid non dividend companies

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends

"Top 20 stocks in the TSX is my pick list" top 20 what?

Taking the best of the top whatever and disgarding the rest is what fund companies claim to do.
It sounds good but but I call BS on their ability to make that strategy work

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half

Mutual Funds are now selling their own index funds at a much lower MER because that is what investors want


Warren Buffet says he can count investors who can beat the market on one hand

I believe him. I will stick with index funds

 

[speakercontrols]

@Zoot Allures

Your claim that you beat 90% of professional money managers in Canadian stock
My results compared to SPIVA claim that. I know that it could just be the results of 1,000 coin tosses. But I'll brag about it anyway

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends
Yawn. This is a Youtube bro claim endlessly repeated ad nauseium.
Every investor has their OWN objectives. It's is NOT necessarily best total return. For some it's safety and less risk. For me, it's income. Thus, my population that I choose from is Canadian Dividend paying companies and I take the single-country risk. Given that Capital Gains are taxed much higher than Dividends in the income bracket that I'll likely be in (sub-$140K I think is the cross over?) , WHY would I invest in non-dividend paying companies when after tax I'll lose any supposed advantage of non-dividend paying companies?


"Top 20 stocks in the TSX is my pick list" top 20 what?
Like most indexes, the TSX is a list by market cap and they are ranked by market cap. Thus, it follows top 20 stocks by market cap.

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich
Yes? Various sources (somewhere on the net) say you have to hold about 13 -18 stocks to mimic index to an acceptable degree. I have 18+ stocks.

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half
That's why index EFTs are popular. Vanguards are around the 0.09% range. To be super cheap, I just pay the 9.95 fee once and hold forever. I'm guessing I'm much less than 0.09%.

 

[speakercontrols]

"Great Plan"

I do recognize that, "it works until it doesn't".

 

[Zoot Allures]

@Zoot Allures

Your claim that you beat 90% of professional money managers in Canadian stock
My results compared to SPIVA claim that. I know that it could just be the results of 1,000 coin tosses. But I'll brag about it anyway

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends
Yawn. This is a Youtube bro claim endlessly repeated ad nauseium.
Every investor has their OWN objectives. It's is NOT necessarily best total return. For some it's safety and less risk. For me, it's income. Thus, my population that I choose from is Canadian Dividend paying companies and I take the single-country risk. Given that Capital Gains are taxed much higher than Dividends in the income bracket that I'll likely be in (sub-$140K I think is the cross over?) , WHY would I invest in non-dividend paying companies when after tax I'll lose any supposed advantage of non-dividend paying companies?


"Top 20 stocks in the TSX is my pick list" top 20 what?
Like most indexes, the TSX is a list by market cap and they are ranked by market cap. Thus, it follows top 20 stocks by market cap.

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich
Yes? Various sources (somewhere on the net) say you have to hold about 13 -18 stocks to mimic index to an acceptable degree. I have 18+ stocks.

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half
That's why index EFTs are popular. Vanguards are around the 0.09% range. To be super cheap, I just pay the 9.95 fee once and hold forever. I'm guessing I'm much less than 0.09%.

There is a term in probability called skewness which is a measure of the asymmetry
of the probability distribution of a real-valued random variable about its mean.

In stock picking it means ony a few stocks carry the market and only a few active managed funds
beat the market . I doubt that any such funds beat the market consistently, some appear to by beating marketr for 10 years but there are so many funds out there it is all random chance

 

[NotADcotor]

I do recognize that, "it works until it doesn't".

Yeah but it has good bones, Insulated concrete forms bones.

If that plan fucks up, we are all pretty boned and most other investing plans would probably get hit as badly or worse... except of course for Beans Bullion and Bullets, but I don't want to live like that.

I do something similar so let us hope it doesn't go tits up. Unless it's nice bolt on titays.

 

[speakercontrols]

Yeah but it has good bones, Insulated concrete forms bones.

If that plan fucks up, we are all pretty boned and most other investing plans would probably get hit as badly or worse... except of course for Beans Bullion and Bullets, but I don't want to live like that.

I do something similar so let us hope it doesn't go tits up. Unless it's nice bolt on titays.

Ya...everyone says, "too invested in banks". Look, if RBC & TD go under, as you say, we're fucked about everything else and should have bought gold right?

 

[NotADcotor]

Ya...everyone says, "too invested in banks". Look, if RBC & TD go under, as you say, we're fucked about everything else and should have bought gold right?

Can't go wrong with porn mags. Lots and lots of porn mags.

If I had excess funds I'd diversify a bit more, but I need to grind out that dividend income.

80 million, I'd back up my dividends with an annuity and some gold and a 30 year government bond ladder. A variant of that Harry Browne Permanent Portfolio.
Maybe tonight I win my single lotto max ticket. But I doubt it.

 

[missarielle111]

Since TD will handle the investments, wanted to know if its a nice option for now since I cannot take higher risk at this stage of my life.

It’s definitely not more risky as long as you are smart with your money and you don’t put it into little cheapo stocks that are trending on Instagram. Realistically the bank advisor is going to put your money in all the well known etfs that you would be investing in anyway, except taking a cut. Research SP500, which has an average return rate of 8-10% if I believe. It is a collection of the biggest 500 companies in America. I would literally put all your money in that. That’s where most of my investments are, then I have a little bit in BTC and some baby stocks that I’m playing around with.

I also personally wouldn’t go the route of investing in banks unless you want something really safe that barely moves. You can see the TD stock at least from experience was absolutely useless, and barely moved in the last year. The dividends are great only if you have a lot of money in them.

 

[speakercontrols]

Can't go wrong with porn mags. Lots and lots of porn mags.

If I had excess funds I'd diversify a bit more, but I need to grind out that dividend income.

80 million, I'd back up my dividends with an annuity and some gold and a 30 year government bond ladder. A variant of that Harry Browne Permanent Portfolio.
Maybe tonight I win my single lotto max ticket. But I doubt it.

Do not knock annuities! It's my plan that - lucky or unlucky - should I make it to 80, I'm going to put everything into annuities. I figure my mind will start to go mushy by then and don't want to impact my investments.

 

[jeff2]

Do not knock annuities! It's my plan that - lucky or unlucky - should I make it to 80, I'm going to put everything into annuities. I figure my mind will start to go mushy by then and don't want to impact my investments.

Could come in handy if we ever get deflation. The indexed ones are not very common.

 

[speakercontrols]

The indexed ones are not very common.

Ya, as with anything, pay for what you get.

 

[NotADcotor]

Do not knock annuities! It's my plan that - lucky or unlucky - should I make it to 80, I'm going to put everything into annuities. I figure my mind will start to go mushy by then and don't want to impact my investments.

I've literally been doing the opposite of knocking annuities. It's part of my lotto plan and part of my real world plan as I get older.

Your point of mind going to mush is something I've considered also. Then having all agency removed from your investing decisions is a good thing. Unless of course you borrow on the basis on annuity income and put it all into orange juice futures, but no place is perfect. Don't make perfection the enemy of good as they say.

 

[NotADcotor]

Could come in handy if we ever get deflation. The indexed ones are not very common.

I think in the Canadas they are pretty much gone

You can IIRC still get ones that increase payments by 2, 4 or 6% of course with the cost of a lower year one payout.