Comments on: This and That: Dog days of summer edition http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/ Helping you invest and prosper Sat, 20 Mar 2010 22:51:20 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: oneils http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-198195 oneils Tue, 18 Aug 2009 13:18:58 +0000 http://www.canadiancapitalist.com/?p=2848#comment-198195 Thanks for the tips Traciatim. Thanks for the tips Traciatim.

]]> By: Traciatim http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-198112 Traciatim Mon, 17 Aug 2009 18:19:42 +0000 http://www.canadiancapitalist.com/?p=2848#comment-198112 If you are looking to do small amounts on a wide variety of investments, you may want to check out a service like shareowner investments. The best strategy here is to move money each pay in to a high yield saving account, and then every quarter, half, or yearly, make one bulk purchase of a selection of investments from their pre-selected funds available. It's not like a regular discount broker, since it's a co-op trading system, so it takes some getting used to, but you can always transfer out once you get a larger amount in your accounts after a few years. If you are looking to do small amounts on a wide variety of investments, you may want to check out a service like shareowner investments. The best strategy here is to move money each pay in to a high yield saving account, and then every quarter, half, or yearly, make one bulk purchase of a selection of investments from their pre-selected funds available.

It’s not like a regular discount broker, since it’s a co-op trading system, so it takes some getting used to, but you can always transfer out once you get a larger amount in your accounts after a few years.

]]> By: oneils http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-198097 oneils Mon, 17 Aug 2009 15:26:12 +0000 http://www.canadiancapitalist.com/?p=2848#comment-198097 I'm surprised that Rob Carrick did not discuss transaction costs in his portfolio advice. A 20 something investor may not necessarily come out ahead when investing in etfs if they only invest, say, 10% of their pay a month. Questrade is charged 5 bucks a trade. So if you are investing each month into three etfs, that's 15 bucks a month (plus taxes I assume). That's almost 200 bucks a year. Anyone have any advice for a young investor on how to keep costs down? Purchase your etfs only once a year? Or, would low cost index mutual funds be a better bet? I’m surprised that Rob Carrick did not discuss transaction costs in his portfolio advice. A 20 something investor may not necessarily come out ahead when investing in etfs if they only invest, say, 10% of their pay a month.

Questrade is charged 5 bucks a trade. So if you are investing each month into three etfs, that’s 15 bucks a month (plus taxes I assume). That’s almost 200 bucks a year.

Anyone have any advice for a young investor on how to keep costs down? Purchase your etfs only once a year? Or, would low cost index mutual funds be a better bet?

]]> By: Cogsy http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-198075 Cogsy Mon, 17 Aug 2009 12:19:35 +0000 http://www.canadiancapitalist.com/?p=2848#comment-198075 Is there any currency conversion if I set the US ETFs up as DRIPs? Is there any currency conversion if I set the US ETFs up as DRIPs?

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-198054 Canadian Capitalist Mon, 17 Aug 2009 03:43:00 +0000 http://www.canadiancapitalist.com/?p=2848#comment-198054 @Cogsy: I don't think you have the option of accumulating dividend payments from US equities in the TD US MMF. Assuming the dividend yield of your portfolio is 3%, the FX charge would cost you 3 basis points (1% of 3%) and another 3 basis points for converting to US dollars. Since, there is no way that I know of to avoid this charge, I don't worry about it too much. @Cogsy: I don’t think you have the option of accumulating dividend payments from US equities in the TD US MMF. Assuming the dividend yield of your portfolio is 3%, the FX charge would cost you 3 basis points (1% of 3%) and another 3 basis points for converting to US dollars. Since, there is no way that I know of to avoid this charge, I don’t worry about it too much.

]]> By: Cogsy http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-197979 Cogsy Sun, 16 Aug 2009 01:17:55 +0000 http://www.canadiancapitalist.com/?p=2848#comment-197979 CC, a friend and I were talking about dividend payouts on US Exchange ETFs. I know that you do not use DRIPs and instead choose to accumulate your dividends. Since I do not have the option to hold US$ in my TD RRSP account, where do I park the dividends without incurring FX charges? Can I set it up so that any dividend payouts go in to the TD US money market fund? CC, a friend and I were talking about dividend payouts on US Exchange ETFs. I know that you do not use DRIPs and instead choose to accumulate your dividends. Since I do not have the option to hold US$ in my TD RRSP account, where do I park the dividends without incurring FX charges? Can I set it up so that any dividend payouts go in to the TD US money market fund?

]]> By: Don't Like My Advsior http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-197942 Don't Like My Advsior Sat, 15 Aug 2009 10:34:44 +0000 http://www.canadiancapitalist.com/?p=2848#comment-197942 Looking for some advice. I have been thinking of switching to index/ETF investing for some time and my last meeting with my advisor confirmed my thoughts. Here's my problem. If I transfer my holdings to a TD account I have to cash out and I would lose approx 1.1% of my investments because of the asinine 7yr DSC fund he put me in. Assuming I have average MERs, I should be able to make up the loss simple by being in ETF's that have MER's that are approx 2%+ lower. Is my logic right? Looking for some advice. I have been thinking of switching to index/ETF investing for some time and my last meeting with my advisor confirmed my thoughts. Here’s my problem. If I transfer my holdings to a TD account I have to cash out and I would lose approx 1.1% of my investments because of the asinine 7yr DSC fund he put me in. Assuming I have average MERs, I should be able to make up the loss simple by being in ETF’s that have MER’s that are approx 2%+ lower. Is my logic right?

]]> By: Thicken My Wallet http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-197883 Thicken My Wallet Fri, 14 Aug 2009 19:13:46 +0000 http://www.canadiancapitalist.com/?p=2848#comment-197883 Thanks for the link. Good luck Monday. Thanks for the link. Good luck Monday.

]]> By: Preet http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-197873 Preet Fri, 14 Aug 2009 17:08:34 +0000 http://www.canadiancapitalist.com/?p=2848#comment-197873 Thanks for the mention CC, I'll be logged in on Monday for sure! Good luck! Thanks for the mention CC, I’ll be logged in on Monday for sure! Good luck!

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-dog-days-of-summer-edition/#comment-197868 Phil S Fri, 14 Aug 2009 15:52:54 +0000 http://www.canadiancapitalist.com/?p=2848#comment-197868 The same thing applies to people who are forced into early retirement, a severance or whatever... When this occurs en masse, then pension funds have to liquidate in order to fund the massive blip in beneficiaries. This liquidation also ultimately affects the market, but the pension funds aren't liquidating because they want to - they are doing so because they have to in order to maintain some liquidity. The same thing applies to people who are forced into early retirement, a severance or whatever… When this occurs en masse, then pension funds have to liquidate in order to fund the massive blip in beneficiaries. This liquidation also ultimately affects the market, but the pension funds aren’t liquidating because they want to – they are doing so because they have to in order to maintain some liquidity.

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