#Reddit personal finance investing how to#
#Reddit personal finance investing full#

In general, I agree with your decision to hold Canadian and U.S. P0u1337: For someone with a defined benefit pension plan that uses up most of my RRSP room, as well as a maxed TFSA, what are some options for the CCP model in unregistered accounts? Currently with HXT and HXS for the simplicity until I figure it out!ĬCP: Investing tax-efficiently across multiple accounts can tie people in knots, so I’d urge you not to look for an “optimal” solution, because there probably isn’t one. One concern we have is that the government may eventually stop allowing this structure (as they have done with other tax-advantaged products), which could cause investors to sell the funds and realize all of the accrued gains in a single year. Certainly they have done an outstanding job of delivering on their promise of matching their index returns minus fees. Are you recommending these ETFs to clients? They seem too good to be true, and I am afraid I am missing something in the details.ĬCP: We’re not currently using these swap-based ETFs with our clients, but I don’t have any objection to them as long as investors understand the additional risks, which I’ve written about a fair bit. You might well be able to stomach a portfolio of 90% equities, but I would make that decision after the next ugly bear market rather than before.ĭerekcanmexit: What is your opinion of Horizons total return ETFs, which use swaps to deliver index returns in a low cost and tax-efficient manner. Few people can endure that without panic. In 2008–09, it was closer to 50% in six months.

The true test is when you have lost at least 30% to 40% of your portfolio. Do you think that is sufficient evidence to increase my risk tolerance? I am 28 years old, currently using 75% equity, 25% fixed income, but I am considering 85% to 90% equities.ĬCP: The market volatility we’ve experienced in the last several months is not a gauge of an investor’s tolerance for loss. However, I have been very disciplined during the market volatility in the last 3 months, and for the entirety of my DIY experience. Princessdianasauce: I haven’t been investing long enough to have endured the 2008 financial crisis or any extended bear market. If you still have surplus cash after maxing your RRSP and keeping some aside for emergencies, consider making additional mortgage prepayments: that’s a risk-free, tax-free way to increase your net worth that requires no investment knowledge. You could consider making additional contributions to that plan: your RRSP room will be 18% of your previous year’s salary and it sounds like you’re doing 13% now.

#Reddit personal finance investing full#

READ: Best ETFs 2018 – One-stop portfoliosĬanadian Couch Potato: Sounds like you’re off to a great start! Taking full advantage of your workplace plan is the place to start, especially if the plan offers low-cost index fund options (most do).

#Reddit personal finance investing how to#

I’m trying to look to the future, but there is so much information I don’t know how to sort through it all. I have no other investments and am not sure where to begin. My new company has a defined contribution pension plan (7% individual contribution 6% company matching). Current annual salary is $90K before taxes. Finally in a full-time job with a salary and benefits and have paid off my debts (with the exception of my car and mortgage). Vbally101: I’m newly financially stable, 31, single female, own my home and car. Here is a lightly edited transcript of the discussion, along with some additional comments and links I didn’t have time to provide during the live AMA. I recently hosted an AMA (“Ask Me Anything”) on Reddit, the online discussion forum, and over 90 hectic minutes I answered as many questions as I could from investors.