# smrtalec's Money Diary



## smrtalec (Dec 16, 2010)

Since my last thread: Time to update strategy and invest outside of registered account, I've made many changes to my portfolio. Thanks for everyone's input.

I've allocated money according to their usage:
$24000 - emergency fund
$60000 - downpayment + closing fund
$27700 - long term investment
$6000 - regular spending + saving for annual contribution to registered accounts
Total Asset: ~$118000

I switched from TD eseries and HSBC mutual fund to HSBC InvestDirect for its 6.88 commission fee (>$100 000 total in bank/investment), so I also did a lot of research into purchasing ETFs. The day I purchased my very first ETF, I also did the Gambit to convert CAD-USD to save the ~1% forex fee. It was all very nerve-wrecking. :distress:

For the long term investment fund, I'm doing a couch potato consisting:
VCN (Cdn Equity) - 25%
VTI (US Equity) - 40%
VEA (Developed) - 20%
VWO (Emerging) - 5%
ZRE (Cdn REIT) - 10%

Allocation chosen to lower financial sector weighting, ETFs chosen for low MER and withholding tax consideration.

Where I've put what:
RRSP (maxed) - Foreign equities + 1y cashable GIC (house)
TFSA (maxed) - Cdn equity + REIT + 1y cashable GIC (house)
Taxable - 1y cashable GIC (emergency) + 1y cashable GIC (house) + HISA (cash/saving)


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## GalacticPineapple (Feb 28, 2013)

smrtalec said:


> Where I've put what:
> RRSP (maxed) - Foreign equities + 180d cashable GIC (house)
> TFSA (maxed) - Cdn equity + REIT + 180d cashable GIC (house)
> Taxable - 1y cashable GIC (emergency) + 180d cashable GIC (house) + HISA (cash/saving)


Looks pretty good to me. If you withdraw funds from an RRSP you don't get the contribution room back, so I'd be tempted to leave shorter-term cash like downpayment money out of there. For Canadian companies that pay eligible dividends, you might consider non-registered rather than TFSA.


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## Spudd (Oct 11, 2011)

The HBP allows one to withdraw from RRSP without losing the contribution room, if you're a first-time home buyer.


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## AGHFX (Aug 31, 2012)

GalacticPineapple said:


> Looks pretty good to me. If you withdraw funds from an RRSP you don't get the contribution room back, so I'd be tempted to leave shorter-term cash like downpayment money out of there. For Canadian companies that pay eligible dividends, you might consider non-registered rather than TFSA.


Like what Spudd said, you don't lose the contribution room under the Home Buyer's Plan. Starting the year after withdrawal you are required to make minimum annual repayments, which cannot be claimed as a deduction against your income.


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## smrtalec (Dec 16, 2010)

Indeed. I will be a first time home buyer so I can withdraw <$25000 from RRSP. In reality, I don't think I will be buying within the year.

The $60 000 house fund is split into 3 parts because I had quite a bit of room left in RRSP and TFSA. Next year I will have more funds allocated for the equity purchase/rebalance (long term investment), and that will help me max out the registered accounts. The entire house fund can then be kept in taxable account for easy access, so no need to deal with HBP paperwork or temporary loss of contribution room in TFSA.


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