Thoughts?....

[angrymime666]

Okay I have an rrsp that has some TD index funds. One up 35%, second up 20% both non Canadian index funds. I've been following the coach potato method. I have 10 k in cash left and I have a weekly automated contribution. So essentially I have just over 2 months left for contributions. I stopped contributing into the rrsp several years ago since retirement was close and rather have the near tax less dividends in my cash account.

I thought about selling some of my gains considering they are at all time highs. Just enough to bring my ratios back to their original percentages. This would allow me to continue to dollar cost average over a longer period of time, realize some tax free gains, and not time the market but strategically prepare for an upcoming change in the market over say 1-2 years.

Some people reallocate one a year. I have not since I have had them over 5 years ago.

Thanks gents.

 

[sprite09]

Okay I have an rrsp that has some TD index funds. One up 35%, second up 20% both non Canadian index funds. I've been following the coach potato method. I have 10 k in cash left and I have a weekly automated contribution. So essentially I have just over 2 months left for contributions. I stopped contributing into the rrsp several years ago since retirement was close and rather have the near tax less dividends in my cash account.

I thought about selling some of my gains considering they are at all time highs. Just enough to bring my ratios back to their original percentages. This would allow me to continue to dollar cost average over a longer period of time, realize some tax free gains, and not time the market but strategically prepare for an upcoming change in the market over say 1-2 years.

Some people reallocate one a year. I have not since I have had them over 5 years ago.

Thanks gents.

don't mean to be condescending, but you can word it whatever you want, but what you're attempting to do is time the market.

even at retirement (assuming 65), your time horizon is long and thus should not worry about a crash or a bear market, even if the bear market were to last a few years, esp since it seems you have a sizeable asset base.

at this juncture you should be more concerned with tax optimization

 

[angrymime666]

don't mean to be condescending, but you can word it whatever you want, but what you're attempting to do is time the market.

even at retirement (assuming 65), your time horizon is long and thus should not worry about a crash or a bear market, even if the bear market were to last a few years, esp since it seems you have a sizeable asset base.

at this juncture you should be more concerned with tax optimization

It's not condescending. I know I am technically, but it would also rebalance my portfolio and prolonged my dollar cost averaging strategy while picking up the gains.

Some people rebalance some do not.

I'm just trying to see what the pros and cons would be to do so.

 

[sprite09]

It's not condescending. I know I am technically, but it would also rebalance my portfolio and prolonged my dollar cost averaging strategy while picking up the gains.

Some people rebalance some do not.

I'm just trying to see what the pros and cons would be to do so.

i actually read this recently which is applicable to you

High cost of living pushing seniors to riskier investments

Fixed-income investments are an attractive option for seniors, but banks are seeing a growing risk appetite among this group. Read on.

financialpost.com

 

[Goodoer]

I think the couch-potato method with TD e-Series Mutual Funds is 'dead'... Move your stuff over to TD Waterhouse. You can keep the mutual funds, but the push is to hold the ETFs. I like BMO's ETFs such as ZSP. The wife is a Vanguard fanboi.

PS - If you're of retirement age, play it safe.

 

[angrymime666]

I think the couch-potato method with TD e-Series Mutual Funds is 'dead'... Move your stuff over to TD Waterhouse. You can keep the mutual funds, but the push is to hold the ETFs. I like BMO's ETFs such as ZSP. The wife is a Vanguard fanboi.

PS - If you're of retirement age, play it safe.

I don't see the difference. The TD series are an index with 1/2% or less management fee and ETFs are relatively the same. Am I missing something?

 

[angrymime666]

i actually read this recently which is applicable to you

High cost of living pushing seniors to riskier investments

Fixed-income investments are an attractive option for seniors, but banks are seeing a growing risk appetite among this group. Read on.

financialpost.com

Thank you. I do lack crypto in my portfolio and only use Gic as a short term way to hold cash till I deploy in the market.

As stated to BM Goodoer I don't see much difference between the TD e series low commission less than 1/2% mutual fund which. It does have a good wide range of companies as the low cost ETF. The ETF probably is a much larger fund than the TD e series.

Am I missing something?

 

[sprite09]

I don't see the difference. The TD series are an index with 1/2% or less management fee and ETFs are relatively the same. Am I missing something?

you're not ...there's no need to move your money

 

[sprite09]

Thank you. I do lack crypto in my portfolio and only use Gic as a short term way to hold cash till I deploy in the market.

As stated to BM Goodoer I don't see much difference between the TD e series low commission less than 1/2% mutual fund which. It does have a good wide range of companies as the low cost ETF. The ETF probably is a much larger fund than the TD e series.

Am I missing something?

without knowing more details, stick with the game plan; meet a CFP and focus on tax planning.

you might look like a genius if the market does dump after you sell, but market timing works until it doesn't

the volatility of the market is the price of admission and people and experts repeatedly think they can outsmart/ time the market by avoiding that volatility (eg getting in and out at the right times)...like stealing from the market

tbh my guess is you'll probably rebalance anyway despite what people tell you here; i think you were just looking for people opinions that confirm your strategy (ie confirmation bias).

good luck

 

[angrymime666]

without knowing more details, stick with the game plan; meet a CFP and focus on tax planning.

you might look like a genius if the market does dump after you sell, but market timing works until it doesn't

the volatility of the market is the price of admission and people and experts repeatedly think they can outsmart/ time the market by avoiding that volatility (eg getting in and out at the right times)...like stealing from the market

tbh my guess is you'll probably rebalance anyway despite what people tell you here; i think you were just looking for people opinions that confirm your strategy (ie confirmation bias).

good luck

I am on the fence and honestly not sure. Typically it's better to forget it and let it ride. On my to do list is to speak to my accountant regarding tax planning. Thanks for your opinion though.

 

[Smallguy]

I think the couch-potato method with TD e-Series Mutual Funds is 'dead'... Move your stuff over to TD Waterhouse. You can keep the mutual funds, but the push is to hold the ETFs. I like BMO's ETFs such as ZSP. The wife is a Vanguard fanboi.

PS - If you're of retirement age, play it safe.

I have Zsp in my portfolio m, and love it.
I started a new position, in Feqt all in one.

 

[funhobby]

I am on the fence and honestly not sure. Typically it's better to forget it and let it ride. On my to do list is to speak to my accountant regarding tax planning. Thanks for your opinion though.

Every situation is different. But what I wouldn't do is forget it and let it ride. Understand the tax implications like the other response said. Make use of your TFSA and get some good dividend paying stock in there for a good tax free cash flow. Enbridge is a good choice.

Good Luck.

 

[angrymime666]

Every situation is different. But what I wouldn't do is forget it and let it ride. Understand the tax implications like the other response said. Make use of your TFSA and get some good dividend paying stock in there for a good tax free cash flow. Enbridge is a good choice.

Good Luck.

It is. Mine is in an rrsp so no tax implications till I pull. Everything else I have is fine. It's capitalizing on the gains and continuing to dollar cost average.

 

[rajput]

Enbridge is a good choice.

Drowning in debt.