Comments on: Follow up Question on Asset Allocation http://www.canadiancapitalist.com/follow-up-question-on-asset-allocation/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: LOUISBREITBACH http://www.canadiancapitalist.com/follow-up-question-on-asset-allocation/#comment-64250 LOUISBREITBACH Wed, 29 Aug 2007 17:20:44 +0000 http://www.canadiancapitalist.com/2007/08/27/follow-up-question-on-asset-allocation#comment-64250 I DISAGREE GE DID NOT GO UP FOR YEARS INDEX DID I DISAGREE GE DID NOT GO UP FOR YEARS
INDEX DID

]]> By: Phil S http://www.canadiancapitalist.com/follow-up-question-on-asset-allocation/#comment-64064 Phil S Tue, 28 Aug 2007 12:15:38 +0000 http://www.canadiancapitalist.com/2007/08/27/follow-up-question-on-asset-allocation#comment-64064 It also depends upon what your individual stock holdings are... If you have the Big 5 banks or Insurers, then those stocks make up the biggest assets in most Canadian Equity portfolios anyways - you may as well just stay with them. Some large cap companies are so well diversified that they are like a mutual fund as well - GE is the largest Dow Jones component and it's so diversified it's like a US index fund (it has businesses in Industrials / Financials / Medical Products / Energy) in one stock. RioCan REIT is the mother of all Canadian REITs, so it's the majority of any Canadian REIT index. The list goes on and on... It also depends upon what your individual stock holdings are… If you have the Big 5 banks or Insurers, then those stocks make up the biggest assets in most Canadian Equity portfolios anyways – you may as well just stay with them. Some large cap companies are so well diversified that they are like a mutual fund as well – GE is the largest Dow Jones component and it’s so diversified it’s like a US index fund (it has businesses in Industrials / Financials / Medical Products / Energy) in one stock. RioCan REIT is the mother of all Canadian REITs, so it’s the majority of any Canadian REIT index. The list goes on and on…

]]> By: WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/follow-up-question-on-asset-allocation/#comment-64006 WhereDoesAllMyMoneyGo.com Tue, 28 Aug 2007 04:17:45 +0000 http://www.canadiancapitalist.com/2007/08/27/follow-up-question-on-asset-allocation#comment-64006 Another thing to consider is that sometimes I feel better eating fees if it puts me into a better portfolio. Doesn't look like it applies to you guys, but if I had a stock whose prospects took a turn for the worse I would have no problem eating the fee to put me into something better. I see some people who are TOO hung up on fees and it becomes a matter of principle. My view is that if you end up with more money in your pocket at the end of the day - THAT is the right decision. And of course, if you can save a few dollars doing it by finding the lowest fee - then that's the ultimate solution! Another thing to consider is that sometimes I feel better eating fees if it puts me into a better portfolio. Doesn’t look like it applies to you guys, but if I had a stock whose prospects took a turn for the worse I would have no problem eating the fee to put me into something better. I see some people who are TOO hung up on fees and it becomes a matter of principle. My view is that if you end up with more money in your pocket at the end of the day – THAT is the right decision.

And of course, if you can save a few dollars doing it by finding the lowest fee – then that’s the ultimate solution!

]]> By: FourPillars http://www.canadiancapitalist.com/follow-up-question-on-asset-allocation/#comment-63991 FourPillars Tue, 28 Aug 2007 02:29:02 +0000 http://www.canadiancapitalist.com/2007/08/27/follow-up-question-on-asset-allocation#comment-63991 Very interesting question. First of all, could you do an in-kind transfer to a cheaper discount broker and do the conversion there? Then you'd be looking at a $200 (Questrade) selling cost vs $1200 at your current broker plus the transfer fee. IB would be even cheaper for the short term. Another issue is capital gains which I'm assuming are not applicable or they probably would have been mentioned. Stocks are cheaper than ETFs, I'm thinking for Canadian stocks especially, it can't be that hard to come up with a list of stocks which would represent a good chunk of the index and would be a bit cheaper. If you're Cdn stocks seem to reflect the Canadian market then maybe you should keep them. Mike Very interesting question.

First of all, could you do an in-kind transfer to a cheaper discount broker and do the conversion there? Then you’d be looking at a $200 (Questrade) selling cost vs $1200 at your current broker plus the transfer fee. IB would be even cheaper for the short term.

Another issue is capital gains which I’m assuming are not applicable or they probably would have been mentioned.

Stocks are cheaper than ETFs, I’m thinking for Canadian stocks especially, it can’t be that hard to come up with a list of stocks which would represent a good chunk of the index and would be a bit cheaper. If you’re Cdn stocks seem to reflect the Canadian market then maybe you should keep them.

Mike

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