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/biz/ - Business & Finance

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3405415 No.3405415 [Reply] [Original]

can /biz/ advise a canadian soon-to-be-investor here.
based on what i've read from canadian couch potato, jlcollinsnh's stock series(and linked MMM canadian version) i should go all ETFs because of low MER. the only downside is the transaction cost you'll pay each time you buy/sell ETFs. there are all kinds of ETFs but i need to invest into stock and bond index tracking ETFs because they track markets performance based on all publicly traded companies in the country of choice, which is good for diversification. unlike mutual funds and "TD Index - e series" funds, which are funds that are created and sold to you by banks themselves, ETFs are sold/bought through brokerages(preferably discount) which could be your bank or ETF fund creators but they are not created by your banks.

for the sake of simplicity for stocks(equities) i should buy into US total market index ETF only because canada's market is too volatile and insignificant, plus US companies are all over the world so international/emerging markets part is covered already. i should buy 100% into stocks because i'm young and currently working and therefore should take advantage of better returns that stocks offer.

so to get this ball rolling, because i've been researching this for the past year but haven't made a move yet, the steps seem to be:
>sign up for TFSA and RRSP with my current canadian bank
>open self-directed brokerage account with my current bank
>buy into VUN(canadian version of VTSAX)
>keep maxing RRSP and TFSA each year and reinvest any gains into VUN
>at some point far into the future when i retire i need to introduce bonds for fixed income but that's for later i wont worry about it

if you've read thus far then here are some questions for you, /biz/:
1. do i invest all my savings 100k+ right away or should i split it over X months?
2. what are some general trends i should watch out for in the market and how to react to them?(for example: funds incurs loss = buy more of it)

>> No.3405907
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3405907

Sounds like youve got it all figured out kid.
You know the answers to your questions. You wouldnt have even brought them up if you didnt

>> No.3406057

>>3405415
RRSPs are for chumps. Ask yourself this question: have you ever seen personal income tax rates drop appreciably? Now ask someone 20-50 years older than you the same question. The answer shouldn't surprise you. TFSAs are godly on the other hand.

>> No.3406074

>>3406057
But if you deduct part of your pay to RRSP you don't pay tax on that.

>> No.3406123

>>3406074
You defer the tax until such time as you withdraw from the RRSP. It might be advantageous if you're in a lower tax bracket when you withdraw than when you put in, but over the long term personal income tax rates seem to consistently go up. Look at how madly the government is spending money and ask yourself if you think you'll be taxed at a higher or a lower rate by the time you retire. RRSPs are a way of bribing you with your own money today and jewing you in the future.

>> No.3406154

You have 100k. So you should buy 100k of a certain coin. Like qtum or ark or something. Yolo fellow Canadian faggot. Yolo

>> No.3406723

>>3405415
>1. do i invest all my savings 100k+ right away or should i split it over X months?

I'd split it up
rates are going up, we're 9 years past the last crash so one is overdue

>>3406123
conceivably when you retire you'll be paying tax on capital gains, which is only 50% taxable, but if your looking decades into canada we're fucked paying for boomers entitlements

still good way to build up a bit of a nestegg to borrow against when buying real estate

>> No.3406778

>>3405415
go forth and plumb by brother

>> No.3406791

>>3405907
stop posting sexual shit right now

>> No.3407062

>>3406723
I just question the sense of taking money that's presumably unencumbered (i.e. no tax owing) and locking into a system where you have to pay tax on it at some point in the future regardless of some current tax incentive like deferral. Put it in an unregistered investment account rather than an RRSP imo.