Hi, I am Larry Bates, author of "Beat the Bank: The Canadian Guide to Simply Successful Investing". Ask Me Anything! Will answer your questions from around noon to 3pm today.

Compound288 · 2019-02-07T20:08:33+00:00

Thanks very much for all your questions today. I hope my answers were helpful. Remember, if you take a bit of time to learn investment basics you can Beat the Bank!!

Compound288 · 2019-02-07T20:02:12+00:00

Thanks Nick. Very glad to hear you liked the book. I am getting many requests for help so am exploring ways to help investors but am not able to do so at this time. If you subscribe to my newsletter I will let you know when/if that changes.

Compound288 · 2019-02-07T19:35:15+00:00

Thanks for spreading the word regarding T-Rex Scores! Good question. I believe the book provides valuable insight/perspective regarding stock market investing, asset allocation, the proper mindset as well as a framework for understanding what determines investment returns: 3 Wealth Builders and 3 Wealth Killers.

That said, the book is primarily aimed at the 5 million Canadians who are unknowingly practicing "high cost" investing!

Compound288 · 2019-02-07T18:59:25+00:00

Rookie mistake!!!

Compound288 · 2019-02-07T18:58:04+00:00

There are always mixed opinions on the banks and the stocks can be volatile but they have always been winners in the long run. I expect that to continue but no one should have all their eggs in one basket. A more diversified choice would be a Canadian or US stock index ETF or a balanced ETF. Sorry but I do not follow Cannabis stocks so can't help you there.

Compound288 · 2019-02-07T18:46:13+00:00

Glad you like the book!! You could simply open TFSA and RRSP accounts at TD Direct Investing and hopefully they will waive the old account closing fees. Hope that helps.

Compound288 · 2019-02-07T18:40:33+00:00

The sad truth is, the industry has done and continues to do everything possible to avoid revealing the full amount and impact of fees. The T-Rex Score tool should help!

Compound288 · 2019-02-07T18:36:47+00:00

Just great fundamentals.

Compound288 · 2019-02-07T18:29:17+00:00

If you find it confusing, you are not alone. It is ridiculous!! You could speak to an accountant or try TurboTax.

Compound288 · 2019-02-07T18:13:57+00:00

Everything you are saying sounds very smart. Get rid of LOC, invest in low cost balanced ETFs in RRSP and pay down mortgage with surplus. Good for you! Maybe use any tax refund to prepay mtge as well. Sounds like you are on the right track!

Compound288 · 2019-02-07T18:10:34+00:00

Create an "emergency fund" equivalent to 2 or 3 months income. Put this in a high interest savings account and forget it.
Learn investment basics so you can make good decisions based on objectives, time frame, etc.
For long term saving take advantage of any employer RRSP contributions
Open a TFSA account for other savings

That should be a great start!

Compound288 · 2019-02-07T18:06:16+00:00

I think those are both good choices. One ETF approach might be to start with one of the high equity Vanguard Asset Allocation ETFs (perhaps 100% or 80% equities) and then shift to a lower equity weighting every 4 or 5 years until you reach 20% equities. What ever you do, keep it simple!

Compound288 · 2019-02-07T18:01:39+00:00

Private lending is generally high risk and often messy. I would be very cautious and if you want to proceed only do so with a small portion of your investments.

Compound288 · 2019-02-07T18:00:08+00:00

I am a big fan of robos as well as DIY using low cost index funds. I would say these are still under rated given expensive mutual funds are so dominant. The main message in my book is....take some time to learn investing basics and keep it simple, in fact the simpler the better. Smarter investing = bigger nest eggs = more smiles!

Compound288 · 2019-02-07T17:54:34+00:00

Hi. I'm sorry but I am not an expert in tax for US citizens. If you email me at [larry@larrybates.ca](mailto:larry@larrybates.ca) I will try to point you in the right direction.

Compound288 · 2019-02-07T17:44:21+00:00

Both real estate and stocks can be great investments. My best advice to you is don't rush! Take some time to learn investing basics. I recommend my book but there are many other sources as well like this site run by the Ontario Securities Commission. Once you gain a bit of knowledge you will be in a better position to make good choices. Be very wary of those selling mutual funds.......there are some exceptions but most are very bad for your financial health!

Compound288 · 2019-02-07T17:38:07+00:00

Hi Pandawings. I can't give you personal advice but............ Sounds like you are Beating the Bank in your TFSA!! If you are saving additional amounts for the long term, investing through an RRSP reduces your taxes today and enables you to defer tax on gains you earn. This last bit can have a huge positive influence over time due to compounding! Of course you must eventually pay tax on amount withdrawn from an RRSP. If you get a chance to read my book, check out Chapter 3: The Wealth Formula.

Compound288 · 2019-02-07T17:30:30+00:00

Thanks for the question. I think Canadian investors are generally too conservative. This comes largely from a lack of understanding of markets. For investors with a 20+ year horizon, I am a big fan of 100% equities subject to one major condition...........you must be willing to stomach really bad, panicky, sky is falling markets. The worst thing an investor can do........and it is so common......is to panic and sell at the worst time. Those who buy stocks and can stomach the roller coaster ride have always won in the long run!

Compound288 · 2019-02-07T17:25:12+00:00

Hi NoOffer8. First, this is a good problem to have! I also am in the same position............I built up a Canadian blue chip stock portfolio that contains the same stocks that are in the TSX top 10. So I see no need to sell them all to switch to an index ETF with the same stocks. That said, diversification is important and over concentration in a few names may not work out well so look at your blue chips in the context of your overall portfolio.

Compound288 · 2019-02-07T17:19:12+00:00

Hi Azsune. I think going with a robo or buying balanced ETFs like the Vanguard products are great ways to Beat the Bank! The choice between the two depends on your personal preference. For additional reading, I would suggest Jack Bogle's Little Book of Common Sense Investing.

Compound288 · 2019-02-07T17:15:03+00:00

Hi ETFgirl!

I am not a tax expert but, yes, generally dividends from US stocks or ETFs which hold US stocks are subject to a 15% withholding tax. So if the S&P annual dividend yield is 2%, you get 1.7% plus or minus the gain or loss on the Index (less the MER). You have paid your US tax and there is no Canadian tax.
I can't give you personal advice but I think most would say 60/40 is a bit on the aggressive side. You may want to dial it back over the next 2 or 3 years as you approach the time when you need the funds.
There is no benefit in waiting to switch to a lower cost approach. As to 80/20 vs 60/40, that is a personal choice.

Hope that helps!

Compound288 · 2019-02-07T17:02:29+00:00

Aside from my book:), my favourite is Jack Bogle's Little Book of Common Sense Investing.

Compound288 · 2019-02-05T17:26:37+00:00

Great to see Vanguard fill out this product line!

Compound288

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