Newbie investor with very basic questions - Page 6
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Thread: Newbie investor with very basic questions

  1. #51
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    Thanks AltaRed, your above input is invaluable and much appreciated! Yes, XAW. 4. Makes sense!

    I will go research ETFs further to understand...bc I didn't realize I would get income from ETFs as per your input #3.


  2. #52
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    Thank you Jimmy for all your input, and I have surmised from your input that ETF Stocks will have income from dividends.

  3. #53
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    Quote Originally Posted by sunshine88 View Post
    Thank you Jimmy for all your input, and I have surmised from your input that ETF Stocks will have income from dividends.
    You are on the right track. I had to do a lot of reviewing/planning recently too. Lots to learn but investment shopping and education is fun. Let me know if you need any links for good articles. If you subscribe to the Globe, check out Rob Carrick on the Globe & mail who did a 6 pt series on ETF recommendations. https://www.theglobeandmail.com/glob...ticle35061633/

    A good show to watch just on ETFs is on BNN on Monday at 8:00pm is Berman's Call. They have other ETF specialists too on Market Call

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  5. #54
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    Quote Originally Posted by JackJac View Post
    Yes, I think there are other "investment" vehicles out there such as annuities, and the average joe would better off learning about those sorts of vehicles as opposed to getting lost in the unpredictable and stressful world of stock market investing ...
    So you'd prefer people use only screwdrivers/hammers and ignore the nail gun/back hoe?

    I'd rather learn about them all then match them up to the job that is being done.


    Quote Originally Posted by JackJac View Post
    ... If one has a career that they enjoy and they are reasonably frugal, then turning to annuities as they approach retirement seems like wise move as opposed to spending your free time obsessing over market fluctuations and guessing the future.
    Where one is obsessing/guess - it sounds more to me that there's a gap in range of knowledge, strategy or experience. Either way - while annuities may fit near retirement, there's accumulation where one is not retired.


    Quote Originally Posted by JackJac View Post
    That seems like solid advice. I just have beef with the stock market and the diversified approach that seems to yield little more than HISAs in the long run.
    Then may I humbly suggest there's something wrong with the methods being used? Or perhaps too much in one particular thing?


    Quote Originally Posted by JackJac View Post
    .. I'd rather have cash on hand than throw my money into the matrix, I mean market. Even blue chip stocks are a gamble.
    Then go with cash on hand ... being able to sleep at night plus not obsess is worth more than any profits.


    Cheers
    Last edited by Eclectic12; 2017-05-23 at 10:16 AM. Reason: fixed quote syntax

  6. #55
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    Quote Originally Posted by AltaRed View Post
    ... 4) There is a school of thought that suggests you put your highest performing asset into the TFSA because it will grow tax free.
    There's another school of thought as well - anything with tedious bookkeeping like a REIT or ETF goes into the TFSA to avoid the updates.


    Cheers

  7. #56
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    Quote Originally Posted by Just a Guy View Post
    I found the comment about investing being complicated shows another issue. Investing is only as complicated as you make it. For example, I give money to the bank and earn interest...not complicated. I buy a gic, again not complicated.
    Agreed.

    Honestly, even if people invested their money in mutual funds (not super costly ones mind you), it is their savings rate, general tax management (i.e., max out TFSAs and/or RRSPs or both first before non-registered investing); and keeping a long-term plan intact that will allow them to succeed. Heck, you could invest in one of Tangerine's all-in-one solutions and become a millionaire after 30 years of saving and investing, if you were disciplined enough.

    The reality is you can sum up 80,000 personal finance and investing books into a few bullet points. Again, for the most part, people know far more about how their cell phone works than their investment accounts and products in them.

    It makes no sense to me but I'm a money nerd and I think about this stuff often.

    Back to the cell phone analogy, if people spent one tenth of the time understanding their savings and investing accounts, and put some thought into the investments products for them; as they did playing with their cell phones they would be tens of thousands of dollars better off

    Updated: Kudos to sunshine for reaching out and wanting to learn more. We all started this way and we all continue to learn.
    Last edited by My Own Advisor; 2017-05-23 at 10:19 AM.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  8. #57
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    Quote Originally Posted by sunshine88 View Post
    ... I will go research ETFs further to understand...bc I didn't realize I would get income from ETFs as per your input #3.
    http://www.taxtips.ca/personaltax/in...tment/etfs.htm


    Quote Originally Posted by sunshine88 View Post
    Thank you Jimmy for all your input, and I have surmised from your input that ETF Stocks will have income from dividends.
    YMMV ... even from year to year.

    For example, XIU
    2015 paid $0.85573 per unit with $0.53122 eligible dividends with $0.32451 as capital gains.
    2014 has $0.56857 with $0.54033 eligible dividends and $0.02824 return of capital (RoC).

    One of the more complicated years was 2008 with eligible dividends, other income, capital gains, RoC and foreign income paid (as well as Foreign Tax deducted).


    Two areas that investors seem to miss for ETFs are:

    a) RoC - which is subtracted from the cost base (i.e. deferred until the sale as a CG).
    http://howtoinvestonline.blogspot.ca...good-from.html

    b) for a Canadian domiciled ETF - phantom distributions (CG is paid that year, no new units are received, cost base is *increased* by the amount of the distribution).
    https://www.theglobeandmail.com/glob...ticle18225076/
    https://www.theglobeandmail.com/glob...ticle29574794/
    https://www.adjustedcostbase.ca/blog...ted-cost-base/


    Cheers


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