Newbie question on Asset Allocation

[Cal]

Take your time developing your financial plan. Don't be in a rush. It does sound like you are trying to theoretically formulate a plan prior to acting upon it. Which is great.

It seems that you have alot of USD, which is surprising if you aren't really interested in holding any US equities.

To begin, I would keep it very simple, maybe 1 Reit ETF, and 2 Canadian ETF's if that is your plan. As mentioned use the Canadian Couch Potato portfolio and modify as needed.

[realist]

If you use a Canadian listed ETF to capture exposure to foreign stock market, you will be paying a withholding tax regardless of whether you hold the ETF within a RRSP or outside. The withholding tax is paid by the Canadian ETF and if you hold the ETF outside a registered account, your T-slips will reflect the foreign tax paid. That's one point in favour of holding US-listed ETFs directly within a RRSP.

Stupid question - What is the implication of the T-Slips reflecting the foreign tax paid? That you don't pay taxes on that amount?

[CanadianCapitalist]

What is the implication of the T-Slips reflecting the foreign tax paid? That you don't pay taxes on that amount?

You receive a foreign tax credit for the withholding taxes that were paid by the ETF. This will reduce your Canadian taxes on the investment income. Details here:

http://www.cra-arc.gc.ca/tx/ndvdls/t...5/405-eng.html