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  1. #21
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    Quote Originally Posted by Buster View Post
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    Yes, I would just drop it into an ETF portfolio. You can get your holdings down to 2, 3 or even 1 ETF nowadays. Make sure you know how to track your ACB and do so. At $200M you likely aren't going to be on the radar of the next level up of available asset managers. You're stuck on the low yield equities and fixed income treadmill that probably will only see modest returns for the foreseeable future.

    The demarcation line can vary depending on who you are dealing with, but generally it's about $1MM in investments (not $1MM in net worth including home equity, etc). At $1MM then you can usually get your investment to a Portfolio Management firm. These are guys that run their own portfolios, usually in one or more investment pools. The advantage here is that they can put you into an alternative asset pool (often RE development or PE type activities). Some of these PMs manage their own alternative asset activities , sometimes they contract them out by buying into other pools. So you would then have a mix of equities, fixed income and an alternative asset pool - the idea being you get a better yield with the additional risk of the alternative assets. These types of PM firms usually charge LESS per dollar of AUM than other investment advisors and the price goes down as your AUM goes up (other than the extra fees they take on managing alternative assets if they do that).

    The extra cost to HNW individuals usually comes in all of the other services that they ask for to ensure they balls are sufficiently tickled. The banks have their private banking services which basically is a full suite of investment products (alternative, and otherwise), plus a full suite of estate planning, banking services, etc. the PM firms mentioned above usually have some sort of Family Office type of services to do the same type of thing. Both of these options are high-fee type of things....that HNW individuals/families need or prefer. But the actual investment side isn't that costly.

    TLDR: under $1MM you are limited to buying stuff from MFDA licensed mutual fund schmoes, IIROC registered investment advisors, or ETFs. Over $1MM your options expand to PMs.
    This is accurate and great information.

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    $200k is a lot of moola.
    The reason you may not have heard from the RBC advisor is that they have brought your money in. Their job is done.

    Just an alternative viewpoint.
    To be fair it's hard to say what you should do without looking at the entire picture. The general rule I follow is a arse backwards approach.

    For example. How old are you? Which life stage are you at, i.e are you married, kids, have a mistress etc. If you have kids, how old are they? Do you have a mortgage, how much is left to be paid off, and how many years..? How old is your car? Do you have a TFSA, short term and medium-term funds..? Do you have any goals for the next few years..?
    What would you like to do? How do you want to retire or do you want to take care of anything before that (pay off the mortgage early etc), take a nice holiday, renovate the home etc.

    That now gives a picture of how the $200k RRSP fits into all that. Think of your financial profile like lego tool box. The RRSP and LIRA are just some of the pieces.
    It also gives a idea of the potential life events and problems you will face in the next 5, 10, 15, 20 and 30 years. Its not that you wont hit them. You WILL have life events/problems. Its just how hard you want to hit them or avoid them at all. You can start planing your funds around that. So when you hit those life milstones or events. You can reach into your tool box eg. TFSA, RRSP LIRA and find the relevant tool to deal with it. Because you planned it a bit. You know which tool to reach for rather than blindly scrambling to find something that fits to solve the problem, but really makes it worse later.

    The next part is your risk tolerances are assessed.
    Then that gives an idea of where you should put your money rather than what you want. There is a difference.

    Now that has been figured out. From this point If you place your funds in a ETF, wealthsimple, index fund, or a mutual fund. Its not a blind investment. It has a VALUE NOW as the investment is serving a PURPOSE towards your goals.

    You financial advisor/planner should be asking the above questions.
    A good advisor is not an order taken. They will challenge you as they see people every day in various age groups, life stages and income. After seeing so many people, a pattern will start to emerge. Hence the advisors can see potential problems coming up that you may not have seen.

    There are waay too many lazy advisors that do not do that and just rely upon spreadsheets, stats and the blind belief that TD comfort portfolios are the best thing since sliced bread.
    I'l give another example to give context. I have had so may advisors give me all the great speach how some funds are making %% and I should invest. Yet none have asked me about my vehicle and how I might want to replace it in the next year or so, or maybe I might buy a home with my gf and have kids, or I need a bit more emergency funds than the average person as my elderly parents are in the UK. None have asked or calculated the potential problems I may face if I loose my job or asked about my lifestyle as I have a long term illness. That has a profound effect of my need to access my investments and day to day spending.

    When I advise clients, dumping your money into a fund or getting life insurance has no intrinsic value unless it is solving a problem.

    So yes, wherever you put your money. Just be aware of the bigger picture of how that fits in as that equation is really important.

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    Quote Originally Posted by The_Rural_Juror View Post
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    Oh snap! Buster just dropped more initialisms than the DJI after a POTUS tweet.
    I'm just happy he differentiated between "M" and "MM"

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    Quote Originally Posted by you&me View Post
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    I'm just happy he differentiated between "M" and "MM"
    That's how you know he's the real deal. Noobs use M. I don't care if Buster is a sanitation engineer, he needs to manage my money.

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    Quote Originally Posted by The_Rural_Juror View Post
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    That's how you know he's the real deal. Noobs use M. I don't care if Buster is a sanitation engineer, he needs to manage my money.
    lol. I usually switch to k for thousands if i'm not dealing with finance people, but i forgot in this case.

    And I don't manage peoples money. I couldn't deal with the hand holding.

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    Quote Originally Posted by tonytiger55 View Post
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    $200k is a lot of moola.
    The reason you may not have heard from the RBC advisor is that they have brought your money in. Their job is done.

    Just an alternative viewpoint.
    To be fair it's hard to say what you should do without looking at the entire picture. The general rule I follow is a arse backwards approach.

    For example. How old are you? Which life stage are you at, i.e are you married, kids, have a mistress etc. If you have kids, how old are they? Do you have a mortgage, how much is left to be paid off, and how many years..? How old is your car? Do you have a TFSA, short term and medium-term funds..? Do you have any goals for the next few years..?
    What would you like to do? How do you want to retire or do you want to take care of anything before that (pay off the mortgage early etc), take a nice holiday, renovate the home etc.

    That now gives a picture of how the $200k RRSP fits into all that. Think of your financial profile like lego tool box. The RRSP and LIRA are just some of the pieces.
    It also gives a idea of the potential life events and problems you will face in the next 5, 10, 15, 20 and 30 years. Its not that you wont hit them. You WILL have life events/problems. Its just how hard you want to hit them or avoid them at all. You can start planing your funds around that. So when you hit those life milstones or events. You can reach into your tool box eg. TFSA, RRSP LIRA and find the relevant tool to deal with it. Because you planned it a bit. You know which tool to reach for rather than blindly scrambling to find something that fits to solve the problem, but really makes it worse later.

    The next part is your risk tolerances are assessed.
    Then that gives an idea of where you should put your money rather than what you want. There is a difference.

    Now that has been figured out. From this point If you place your funds in a ETF, wealthsimple, index fund, or a mutual fund. Its not a blind investment. It has a VALUE NOW as the investment is serving a PURPOSE towards your goals.

    You financial advisor/planner should be asking the above questions.
    A good advisor is not an order taken. They will challenge you as they see people every day in various age groups, life stages and income. After seeing so many people, a pattern will start to emerge. Hence the advisors can see potential problems coming up that you may not have seen.

    There are waay too many lazy advisors that do not do that and just rely upon spreadsheets, stats and the blind belief that TD comfort portfolios are the best thing since sliced bread.
    I'l give another example to give context. I have had so may advisors give me all the great speach how some funds are making %% and I should invest. Yet none have asked me about my vehicle and how I might want to replace it in the next year or so, or maybe I might buy a home with my gf and have kids, or I need a bit more emergency funds than the average person as my elderly parents are in the UK. None have asked or calculated the potential problems I may face if I loose my job or asked about my lifestyle as I have a long term illness. That has a profound effect of my need to access my investments and day to day spending.

    When I advise clients, dumping your money into a fund or getting life insurance has no intrinsic value unless it is solving a problem.

    So yes, wherever you put your money. Just be aware of the bigger picture of how that fits in as that equation is really important.

    Thanks for the input. If it changes anythings, I can give some insight.

    I am 35, dual income, no kids. Mortgage is paid off for my 1600 square foot home. My car is 2018 and was the first new car I ever bought (paid off), my other car is a 2009 low mileage for the wife. My TFSA is maxed out and I just top it off every year. I got another 60k or so laying around in savings accounts for day to day purchases. My longer term plan is to buy my dad a new car for retirement ($25-30k cash, in about 18 month) and eventually move into a bigger place, perhaps buy land and build a house outside the city. I pay for everything day to day and can save about $5k a month after all the expenses, and wife has her own savings which she uses when we do bigger purchases (for example, if we were to buy a new home now, she would contribute $150k into the house). Really that's all there is, that's my mo boring life haha. We won't be having kids, we plan to continue travelling as we please and live a normal quiet life. We aren't lavish and don't care about fancy clothes/cars etc. I would love to get a sports car in the future like a GT-R, or an older muscle car to restore, but that's a want more so than a need. I do all my own work on both car and home, so pretty handy, so our expenses are pretty minimal.

    In today's money, I think we could live on $3k a month comfortably, no including our major trips. I would say that in retirement, I would need about 60k in today's money to continue my existing lifestyle, which obviously makes 200k look very poor and I want to make sure I can grow that responsibly. For the time being, I will max our my RRSPs every year for the foreseeable future.

    The single biggest thing I spend money on is travel, with a big trip every second year ($25k or so a year), and smaller trips in between (maybe 10k). I don't spend much for anything else really, wife cooks great so we hardly ever go out.

    My previous TD guy was well involved with my finances, I just really hated going downtown, but yah, once RBC got my money I haven't heard from them. Both charged about the same management fees.

  7. #27
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    @eblend ...sounds like you got your shit sorted out and you're way ahead of the average joe in terms of your mode of thinking. well done.

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    Good job eblend! You've got maybe 15-20 years to retirement by the sounds of it. I don't even need to pull out my TI BA II Plus to figure that out.

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    What ETFs do you guys follow?
    Ultracrepidarian

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    Tqqq, wtid, cpd.
    Last edited by suntan; 10-14-2019 at 04:49 PM.

  11. #31
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    Quote Originally Posted by suntan View Post
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    Tqqq, wtid, cpd.
    These are not ones I would recommend for OP, however.

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    Quote Originally Posted by Buster View Post
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    These are not ones I would recommend for OP, however.
    What would you recommend? How does one go about getting EFTs? I know that Wealthsimple is all about EFTs but you don't choose them, they do, so how does one manage them on their own?

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    Check out Canadian Couch Potato.

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    If you want an all-in-one ETF that rebalances itself every year, VGRO is a viable option.

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    Quote Originally Posted by eblend View Post
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    What would you recommend? How does one go about getting EFTs? I know that Wealthsimple is all about EFTs but you don't choose them, they do, so how does one manage them on their own?
    Set up a self directed trading account and trade away.

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    Nickels.
    0.5 gram microsd delivered by 12,000 pound combustion vehicle and driver.

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    VGRO is an ideal set & forget option for 'lazy' investors IMHO. VBAL and VCNS are also good if you are older and want more security.

    Whatever you do, please don't pay the banks 10X the MER for a near identical product (of which they are happy to offer).

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    VGRO/XGRO/ZGRO are the way to go for 98% of us.

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    Quote Originally Posted by ExtraSlow View Post
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    Well what do I know? I'm just some single-meat wage slave.
    ^Quote of the year nominee.

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    Quote Originally Posted by A790 View Post
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    VGRO/XGRO/ZGRO are the way to go for 98% of us.
    This is basically the best investment advice you can find anywhere on the interwebs.

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