# How often do you add money to your portfolio?



## subwaybusker (Mar 24, 2014)

I currently have a couch potato portfolio (20% CDN, 20% US, 20% INT, 40% CDN Bonds). It is coming up to the year mark where I should rebalance my portfolio and I am wondering how many of you add money every year? I know the rule is to not time the market and to add money periodically...but am wondering if there is any strategy to this?


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## CalgaryPotato (Mar 7, 2015)

There are studies that show that adding the money as soon as you can works better more often than holding the money to try and buy low. It's similar to the same general issues with market timing that tops and bottoms are only visible in the rear view mirror.


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## My Own Advisor (Sep 24, 2012)

I add money whenever I reasonably can. I rebalance through new purchases only.


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## GreatLaker (Mar 23, 2014)

My Own Advisor said:


> I add money whenever I reasonably can. I rebalance through new purchases only.


+1

I make monthly RRSP contributions (TD Balanced Index Fund), and contribute the max to my TFSA as early in the year as I can. I add non-registered funds when I have $ available. 
I also try to rebalance through new purchases only, even if it does not bring me back exactly to my target allocation. I think rebalancing too frequently just tries to smooth out random market fluctuations.


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## avrex (Nov 14, 2010)

_Answer:_ *Whenever I can*, considering the costs involved.

I bank with TD and have the TD All-Inclusive Banking Plan.
In order to bank *"for free"* and avoid the $29.95/month fee (that many people don't seem to mind paying), I maintain a $5,000 minimum monthly balance. 
This $5,000 automatically acts as my emergency fund.

Once my TD bank account reaches say $10,000...
I transfer $5,000 out and move it my portfolio. 
I then re-balance my portfolio by making a new purchase.

For example, if I purchase $5,000 of an ETF with a trading cost of $10, that's a one-time personal expense ratio hit of *0.20%*. 
*Very acceptable* to me.


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## the_apprentice (Jan 31, 2013)

^ I use the exact same method. TD's All-Inclusive Plan, $5,000 as my emergency fund, and when deemed reasonable I transfer to various accounts. On average I transfer money twice a year and rebalance where I see fit.


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## Westerncanada (Nov 11, 2013)

'() same as above for me.. that said, I take 50% of my pay and split between tfsa and rrsp.. and inside the rrsp I have td e-series and I purchase these once per month regardless of price. Tfsa purchase is 3x per year with $5000 minimum purchase

You're very heavy in bonds?


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## MrMatt (Dec 21, 2011)

My Own Advisor said:


> I add money whenever I reasonably can. I rebalance through new purchases only.


Same here, when I've got the money, I invest it.


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## 30seconds (Jan 11, 2014)

300$ weekly and when ever else I have extra cash. Be careful about adding to rebalance in registered accounts as you may go over you contribution limit for the year.


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## subwaybusker (Mar 24, 2014)

Westerncanada said:


> '() same as above for me.. that said, I take 50% of my pay and split between tfsa and rrsp.. and inside the rrsp I have td e-series and I purchase these once per month regardless of price. Tfsa purchase is 3x per year with $5000 minimum purchase
> 
> You're very heavy in bonds?


What would you recommend as a percentage for bonds?


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## wendi1 (Oct 2, 2013)

I add money to my RRSP once a month, and a big contribution during "RRSP season". Money to TFSA once a year.

I rebalance twice a year or so, and usually just buy stuff (although, with US equities doing so well, I had to sell some last time to get everything back in balance).

Your bond percentage seems fine to me (unless you are very young indeed).


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## Sm5 (Nov 2, 2014)

The bulk of the TFSA money goes in January/February leaving enough room left for the automatic monthly contributions to hit the max by the end of the year. Then next, goes the RRSP until that is full (usually around August or so) and the remainder goes in non-registered once that is maxed out for the year.

Major contributions go in quarterly (as I get larger draws from work quarterly). Additionally, whenever I have a few small cheques (mileage and expense reimbursements) or there is too much in my day-to-day accounts I dump some into investments. 

Oh, and small amount per month as an automatic deposit to keep me honest (this goes into TFSA).

Rebalancing is done by simply buying whatever is underweight when it is time for a larger contribution.


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## Cal (Jun 17, 2009)

Generally I add once a month.....helps with constant rebalancing, and buying opportunities.


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## 1980z28 (Mar 4, 2010)

subwaybusker said:


> I am wondering how many of you add money every year?


For as long as I car remember,every month,Appox 3k/month and tax refund at year end this year,previous years I was tax exempt as per form T1213 I believe,as I have always max my rrsp


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## newfoundlander61 (Feb 6, 2011)

Auto purchases every week on Fridays, easy for a budget and by years end have maxed out my TFSA room.


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## TheArrow (Jan 13, 2014)

Are these non-registered accounts?

Registered I assume you only add if you have room...

For you guys that buy ETF/index funds in registered accounts. How do you keep track of your Average Dollar Cost when you report taxes? I have heard to avoid DRIP to make it easier but is there anything else I should be aware of?


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## GreatLaker (Mar 23, 2014)

TheArrow said:


> For you guys that buy ETF/index funds in registered accounts. How do you keep track of your Average Dollar Cost when you report taxes? I have heard to avoid DRIP to make it easier but is there anything else I should be aware of?


Assume you meant _non-registered _accounts. I use adjustedcostbase.ca to track my ACB. There is info in the following post:
http://canadianmoneyforum.com/showthread.php/39721-ETF-Distributions-Dividends-vs-Interest-vs-Return-of-Capital?p=618281&viewfull=1#post618281

Cost base is only needed when you sell shares or ETFs. For distributions your broker will send annual T3 or T5.

There are other spreadsheets that can be found to track ACB if you do a web search, and you can also get the data for ETF distributions on the ETF providers' websites.


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## Ag Driver (Dec 13, 2012)

30/30/30/10 split for me. I take 10% from every pay cheque and transfer it into a HISA until I reach an amount that I can rebalance with just the mimums. That equates to about $800 to $1100 for now. Nothing is more than 5% out of wack for the most part.


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## slinger (Apr 10, 2015)

RRSP contributions bi-weekly and TFSA contribution monthly. I buy ETF's comission-free through Questrade so I don't get killed with fees by buying so frequently.


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