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moneysense.ca, 8/04/07
Interview with Dan Solin
Your book’s blurb says that “You will never need another investment book or any other investment advice”. Other than your book, are there any others that you would recommend to investors?
There are many excellent books that I would recommend. My personal favorites are: Burton Malkiel’s classic, A Random Walk Down Wall Street, Mark Heber’s, Index Funds: The 12 Step Program for Active Investors, and William Bernstein’s excellent book, The Four Pillars of Investing.
moneysense.ca, 8/04/07
Interesting review. I guess one of the issues I would have with only have 10% of equities in Canada would be the currency risk. I suppose if I were approaching retirement then I might have more bonds which would likely be in Cdn$ but I still might want a higher Cdn equity portion in that scenario. If you are younger then the currency risk might not matter as much.
Mike: Currency fluctuations are not an issue with the Smartest Portfolios because both XSP and XIN are now hedged. Also, the 10% figure applies to the equity component. i.e. if 80% of allocation is to equities, then 8% (10% of 80) is allocated to Canadian equities.
[...] unknown wrote an interesting post today onHere’s a quick excerptI recently conducted the following interview with the author of The Smartest Investment Book You’ll Ever Read (read review):. Can you give us a little bit of personal background on how you became convinced that it is extremely difficult … [...]
I am curious why proponents of market-share allocation for global portfolios ignore taxation. Yes, Canada’s economy is small, on the global level. However, for Canadian residents who are subject to Canadian taxes, buying into Canadian equities is not just a matter of “perceived security” or even currency hedging. There is a matter of preferrential treatment of Canadian dividends from the taxation perspective. If you’re interested in dividend income, it makes a lot of sense to greatly overweight Canada vs foreign equity (foreign dividends are taxed at your marginal rates).
While the taxation may not tilt your opinion about asset allocation (I don’t have a lot in Canada, but I don’t care all that much about dividends yet), but this is something that investors need to be aware of.
sevimo, are you talking about dividend treatment in RRSP or non-RRSP accounts? I think it makes a difference.
My New Passive Index ETF Portfolio…
Unfortunately this is the second time my portfolio has changed in the past two years. The first change was when I moved from a TD Mutual Funds account to Clearsight last year. My advisor had great plans for my portfolio. He wanted to eventually have me…
To #5: of course I’ve meant non-registered investments. Pretty much all taxations considerations (except withholding taxes) can be ignored in registered accounts.
sevimo, the reason I ask is that you said “I am curious why proponents of market-share allocation for global portfolios ignore taxation” but they aren’t ignoring it, they are just referring to asset allocation in a registered portfolio.