Comments on: Sleepy Mini Portfolio Q4-2009 Update

By: Kelvin

Kelvin — Tue, 26 Jan 2010 16:07:49 +0000

I’ve just transferred out my wife’s RRSP portfolio in cash to an online discount brokerage. I am looking for a long-term portfolio for novice investor like myself and I came across your post. My question for you is: Since now I have cash ($100k) in the account, should I dollar-cost average? Let’s say buy $10k every 2-weeks. Assuming I hit the $9.95 max. commission per trade, every 2-week I’ll have to pay ~$40 in commission. The total cost of investing this $100k would be ~$400 (0.4%). Is it worthwhile? Or should I just invest the whole thing in one shot and pay $40 commission, or anything in between?

By: Russell

Russell — Thu, 31 Dec 2009 05:54:37 +0000

I’d be interested in your average return rate on your investment (IRR).

By: Caitlin

Caitlin — Tue, 22 Dec 2009 18:51:54 +0000

Yay, the value is back up over the amount invested! And I bet you’ll come out even further ahead due to the increased number of shares the same amount would buy when the markets were lower!

(I also just noticed the different look around here!)

By: Canadian Capitalist

Canadian Capitalist — Mon, 21 Dec 2009 21:44:16 +0000

@Adam: This portfolio is implemented using TD e-Series Index Mutual Funds. The only requirement is a minimum purchase amount of $100 per fund. There are no fees to buy or sell.

By: Adam

Adam — Mon, 21 Dec 2009 19:40:36 +0000

So when you rebalance do you have to pay the purchase fee *4? Not sure what kind of fee’s you pay to purchase your funds, or if you do? If you do, doesn’t that hurt when only purchasing around $250 for each fund?

By: Mark Wolfinger

Mark Wolfinger — Mon, 21 Dec 2009 17:21:21 +0000

CC (and Nick):

Thanks.

By: Canadian Capitalist

Canadian Capitalist — Mon, 21 Dec 2009 17:12:18 +0000

@Mark: Yes, book value refers to actual money invested. Of course, over the long-term what counts is real, inflation-adjusted returns, not simply profits over book value.

By: Nick

Nick — Mon, 21 Dec 2009 16:56:47 +0000

Started near the peak, survived the worst crash in a generation (or two), and is still in the black. And it’s simple. What more do you want, people?

Mark – CC appears to be using original cost. (9250-9000)/9000 = ~2.8%

By: Mark Wolfinger

Mark Wolfinger — Mon, 21 Dec 2009 16:43:12 +0000

Serious question:

What is the ‘book value’ to which you refer?

Is it your original cost?