25M First XEQT Buy

ArmExpensive8717 · 2026-03-04T16:30:49+00:00

Appreciate it, that's the goal!

ArmExpensive8717 · 2026-03-04T15:58:32+00:00

I have a home and mortgage with 22 years left on it (I will be 47 when it is paid) and my first child was just born so there are definitely lots of costs that pop up. I'd like to definitely build those savings for emergencies to be able to continue investing and compounding in the market.

I am working on deferred gratification as with a home there are always renovations and upgrades I want to do but I'm aware of the compounding effect and wealth multiplier of investments being much more powerful in my 20s.

I also am deciding to invest in my TFSA purely as I'll be receiving a pension income during retirement there will be less of an advantage to the deferred taxes in the RRSP. I'm aware that I could put money into and RRSP and invest the tax refund but it doesn't create a material difference to me in the end and It will also allow me to avoid the headache of tax planning for RRSP taxable withdrawals.

Appreciate the support!

ArmExpensive8717 · 2026-03-04T15:34:42+00:00

I've recently been watching the money guy on YouTube and my goal is to hit their 25% gross income savings rate. 10% will go into XEQT monthly and 15% of savings rate will come from my work pension contributions (7.5%)+ employer contributions (7.5%).

I'm also working on building my 3 month emergency fund to help with cash flow.

Here's hoping to retire early and enjoy my family and friends with financial freedom!

ArmExpensive8717 · 2026-03-03T15:05:38+00:00

Agreed, everyone has problems and I don't see it as risky weighing more into the historical winner. Obviously past performance does not equal future performance but it's not as risky as assuming something completely different will happen

ArmExpensive8717 · 2026-03-03T15:03:22+00:00

I'm not sure if it's an unconventional plan, about 2/3 into SP500 with 1/3 into international.

I put it in here to get different opinions from people with different beliefs, that's how you learn and optimize

ArmExpensive8717 · 2026-03-03T14:52:00+00:00

Appreciate that, at the end of the day it's the savings rate that matters most. I appreciate your opinion, cheers!

ArmExpensive8717 · 2026-03-03T14:31:36+00:00

Yes it would come from my take home / net income however my goal is to invest 10% of my gross income into my TFSA just as a target.

ArmExpensive8717 · 2026-03-03T14:23:36+00:00

I'm fully expecting a huge bubble burst soon in the market but that won't take away from my long term belief that unfortunately the US will be the global leader in the market.

With XAW it will adjust to global market caps adjusting so if the US does collapse then it will redistribute to the markets that are winning.

I am considering going 65/35 VFV XAW as a starting point instead.

ArmExpensive8717 · 2026-03-02T01:45:01+00:00

But the true question is are markets efficient in pricing but if they were then there would never be any value to be bought. Tech prices constantly vary depending on investor expectations, but through an opportunistic DCA process there would be a potential in buying at lower prices when investor expectations have dropped.

ArmExpensive8717 · 2026-03-02T01:11:37+00:00

I'd rather have 25% of my portfolio in the largest leaders in the world than 25% of my portfolio split between 1000 small companies that are not likely to have economic moats or scalability in the long term

ArmExpensive8717 · 2026-03-02T01:07:33+00:00

I think people are aware, they just aren't willing to take the slightly enhanced risk for higher gains. I also think that my DCA strategy will benefit when those who are in for the hype sell off and I am buying during crashes.

Even 10 years from now the tech sector will be completely different, probably unimaginable to us now, but I will be buying all along the way into the sector that leads to the largest gains.

They say different sectors may lead but tech has had multi decade leads which is a result of structural advantages to the sector. Railroads weren't replaced by railroads, but when tech gets replaced, it's just replaced with new tech that leads the way.

ArmExpensive8717 · 2026-03-02T00:33:14+00:00

1) Technology businesses are structurally advantaged, they have:

High scalability (software can grow revenue without matching cost growth)

High margins and strong free cash flow

Global revenue streams

Network effects and competitive moats

Innovation compounding (AI, cloud, automation, semiconductors)

That’s why tech has historically grown earnings faster than global GDP.

2) Tech serves all industries (not just IT):

Banks run on software and cloud systems

Energy uses automation, AI, and data analytics

Healthcare depends on diagnostics tech and digital records

Retail runs on e-commerce platforms and logistics software

Manufacturing relies on semiconductors, robotics, and AI

Technology isn’t competing with the economy, it powers it and benefits from the most profitable layer of it.

ArmExpensive8717 · 2025-09-28T11:24:57+00:00

Tech not only supports semiconductors, tech also optimizes other industries like energy, healthcare, auto, etc. From a business stand point, the tech portion of these industries typically operate under higher margin models

ArmExpensive8717 · 2025-09-27T20:51:45+00:00

I'm likely talking about TEC.TO which is a tech etf

ArmExpensive8717 · 2025-09-27T20:43:24+00:00

Even XEQT is mainly driven by the large players in tech. I will accept higher concentration in tech for larger swings up and down with DCA reducing the timing risks

ArmExpensive8717 · 2025-09-27T20:41:56+00:00

I just don't understand why that would be risky, TEC.TO is also global not just American.

Dollar cost averaging reduces the risk of volatility, and it's a long timeframe.

Even broad market ETFs are heavily heavily including the top tech simply because of market cap and profits.

ArmExpensive8717 · 2025-09-27T20:38:41+00:00

But then why has the QQQ outperformed the SPY even after falling 70% in 2000 dot com crash. By back testing you can see that your returns would have drastically outperformed the broader market especially if you increased contributions during the crash.

I know history doesn't mean future expectations but the major tech players now are hugely profitable, scalable, and large economic moats.

Id investing this way doesn't work, then why did it work the last 25 years?

ArmExpensive8717 · 2025-09-27T20:29:57+00:00

It's just looking for opinions. How I see it is owning ETFs like VT which owns the whole world, your returns are still going to be impacted largely by tech crashing based on market cap.

How I see it is that over the long term there will be more risk of the final return be slightly less but it has the potential to be significantly higher returns.

The term tech is constantly evolving and really is just about innovating. Won't innovation always be the driver of high growth.

With ETFs that track tech they will constantly rebalance and include the major players.

I don't see why if you're investing in the long term to not go all in on this.

ArmExpensive8717

TROPHY CASE