tag:blogger.com,1999:blog-5433839636644874439.post799973828356769943..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Investing an Inheritance: How to do a "File and Forget for Forty Years"CanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5433839636644874439.post-30569013187915769872008-01-27T21:40:00.000+00:002008-01-27T21:40:00.000+00:00I tried to look at tracking error in globe investo...I tried to look at tracking error in globe investor<BR/><BR/>I compared the TD product (US index in US $) to the S&P and S&P total return and they do not match perfectly.<BR/><BR/>Interestingly the TD currency neutral S&P product will also not track to the TD US index in US $$.Johnhttps://www.blogger.com/profile/07839485749952093356noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-39767416122308985662008-01-27T17:23:00.000+00:002008-01-27T17:23:00.000+00:00John, Initially, the account will be taxable and a...John, <BR/>Initially, the account will be taxable and all brokers, Questrade included, offer such accounts that can hold US cash, so distributions from Vanguard /US ETFs will not be hit with FX fees. I agreee TD e-Series would offer the ability to do rebalancing free, but someone has to take action, it won't happen by itself. One objective was to have no monitoring for rebalancing, so in that way TD e-Series only solves part of the rebabancing problem (option 2 would solve it all). <BR/><BR/>One thing I did not examine with TD e-Series is tracking error. Do you have any info on that?CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-5174601453547893762008-01-27T16:14:00.000+00:002008-01-27T16:14:00.000+00:00My view is that your option 3 is the hands down be...My view is that your option 3 is the hands down best for the unsophisticated<BR/><BR/>The vanguard option (which I know you use) will hit the portfolio for currency conversion on the way in and again when the indexes give annual payouts. <BR/><BR/>The TD e funds allow for very inexpensive rebalancing (i.e. free) and will also reinvest automatically.Johnhttps://www.blogger.com/profile/07839485749952093356noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-78388749402443326312008-01-24T23:28:00.000+00:002008-01-24T23:28:00.000+00:00Michael, Thanks for the reminder that I owe you a ...Michael, Thanks for the reminder that I owe you a post on why I believe fixed income should be in a portfolio for a long term investor.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-38348487131849688132008-01-24T17:28:00.000+00:002008-01-24T17:28:00.000+00:00I like your well thought out reasoning about inves...I like your well thought out reasoning about investing this inheritance, except that I don't understand the part about bonds.<BR/><BR/>I don't see why any money should go into bonds. Over 40 years low cost index stock ETFs are overwhelmingly likely to beat bonds. The odds of bonds beating stocks is much lower than the odds that a man in his twenties will die before he retires.<BR/><BR/>Why not wait until about 5 years before retirement to start switching money over to bonds? The only reason I can see is if an investor is irrational and can't stomach the volatility. A rational investor will say that there will be volatility, but I'll have more money in the end if I invest 100% in stocks. The irrational investor may need to soften the blow of market declines with bonds, even though he will end up with considerably less money at retirement.<BR/><BR/>(Sorry to sound cranky -- I just can't see any rational reason to own bonds over the long term.)Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.com