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I'm going to have to agree with several others who commented about what this video is really about. Besides that, your overall contention has one HUGE flaw (a trap that sooooo many other professionals fall into as well), and that is that you contend bonds in the end don't serve a retirement plans like stocks. Your assessment is essentially true, IF you run out the plan to 20 or 30 years...and that right there is the problem! If you follow the 3-part philosophy that many experts push these days of 'Go/slo go/no go' for an overall retirement, then we see by your own graphs that for the first 10 to 20 years (the years you actually will be spending the most amount of money in your portfolio), bonds actually provide the 'safest' alternative. You reference one of your bar graphs (and you actually mention a reference point at 20-years) at the 30-year mark, but who's going to be actually all that active and spending when they're +90?! (if you're alive at all)

Another great video!

What's your opinion on using a cash wedge - keeping a certain amount of cash for expenses on hand? Anywhere from 3-12 months worth. This is effectively the fixed income of your overall net worth. For me, this is approach I'm taking meaning I could weather 1 year long downturn or more. This cash is earning about 4% as well, so it's at least keeping pace with inflation.

Why is Manulife one a disaster?

Attia doesn't have solid science for the diet. Look up real references. Sadly people are eating too much animal protein that increases likelihood of cancer, heart and kidney disease and diabetes. Such a shame your doctor believes this. You should read Dr Ornish- he does actual studies. And the Framingham study which has been running for 75 years

Excellent video ! Easy to understand and great graphics and charts.... New Subscriber here !

This felt like self aggrandizement with your guest speaker. Why not interview someone who had financial difficulties and the adjustments they made to get to financial security? This would help the 80% of people who aren’t in Kornel’s situation and are actually struggling. Thanks Ed for your videos, but this one missed the mark for me.

Whether you sell or reinvest dividends you have to pay tax on the income in the US. Maybe Canada is different

I agree with you, however I'm going on a long winded tangent anyway. As someone who isn't accusing of of being overly negative or anything of the sort. I also fully acknowledge that you may or may not hold a similar opinion: Dividend investing doesn't concern me, because: 1) Sub optimal works 2) Savings rate and longevity of savings rate is what matters most. So long as you are investing in growth assets, and have a somewhat acceptable level of diversification. Which to be fair, could be reached with as little as 20 invidual stocks. Also dividend stocks exist outside of canda, there are international dividend ETFs and Canda has TAX treaties with a lot of countries. 3) Behaviour makes a massive impact on long term investing and compounding wealth. Having specific allocations to 3 seperate index funds and a safe withdrawal rate. Is what works best for me, and is a lot closer to optimal than a dividend based approach. For optimal, don't chase dividends or capital growth. Chase total returns and realise that index funds are probably the best way to go about this. In saying that this doesn't behaviorally work for some people. Some people may still panic and sell when they shouldn't. A consistent and growing dividend stream can curb this behaviour for some people. Dividend investing is however less tax efficient and will undepeform basic index funds, but it still works. P.S If a company is trading below it's NTA (below the value of it's net tangible assets). You may be better of with a dividend. Just one petty and insignificant point in the grand scheme of things. Also this point would be best used to defend a total return or Boggle Heads style investing approach. Not a solely dividend or capital gains based approach. This is just one example of when, sometimes a dividend is the best use of a companies money. Once again, I'm a strong believer in total returns. If a best use of a companies money is to reinvest it, that's what I want them to do, if the opposite is true, I want thw dividend. Dividends aren't irrelevant to thw company paying them. However since your point is really, that they are irrelevant to us the investor, I agree with you.

While doing Smith maneuver does it make sense to sell and withdraw captial gains annually to make prepayments into the mortgage? Similar to taking out dividends. This way we can slowly adjust up the cost basis while keeping capital gains under 250k and pay down the mortgage faster.

$40k pretax is not nearly sufficient for the average person's annual expenses after taxes.

genuinely the best videos I have seen regarding hedge funds! helping me get ready for my interviews 💪

Just found your videos and I love the diversity in financial planning that you speak to. All that I ever invested in mutual funds didn't seem to do much but learned too little too late maybe

Good information, but you confused the hell out of me

👍 nice

when holding shares in corp, why just not to harvest gains now (sell and buy right the same shares) befire June 25?

Thanks for this info. We close on May 28th, 2024. Between my wife and I, we planned on maxing out 16k each as we opened in 2023. I was confused by the "no restrictions on qualifying withdrawls" and "no minimum amount of time that funds have to stay in the account for tax deduction". So I figured we would make several deposits and withdrawals as we got paid during this last month to maximize the tax benefit. We discussed this with the bank and they saw no issues with it. As a result we pulled some money out about 10 days ago. When we went to put in another deposit yesterday with the bank we learned that wasn't possible. We didn't realize once money was pulled you can no longer deposit and receive tax deduction. This was news to our advisor as well. Is there anything that can be done here to reverse?

My adviser buys me only specific international stocks. Takes 1% but we outearn the index plus his fee thus a win for me. Thats the only way i would do it. Anything less then average index + his fee + 1% for me extra is useless

Ouch. Your approach sounds like fees on top of fees on top of fees.

Renting in Toronto and investing the difference has made me a multi-millionaire. I don't see myself ever getting a place but if I change my mind, I have the option to.

Great video! I'm new here. Subscribed! 😊

Part of the reason bonds don’t help is because people are buying the wrong bonds. You buy bonds for diversification, and corporate bonds don’t provide much diversification to a portfolio of mostly equities. Adding some long dated treasuries, not because they have good total return (they don’t) but because they have low correlation with equities, and rebalancing can enhance the SWR.

Hi Ed - Thanks for the content. Curious do you rent or own the condo in Toronto?

Great upload Ed! Valuable information.

Im 37, rented up to this point, and ive built a decent retirement portfolio so far. Im currently debating if i should buy a home. The "building equity" aspect is what attracts me. Also, having a paid for property when i retire would be nice.

Perfectly explained. Thanks Ed, it's exactly what I've been promoting without your great examples with data. I most definitely will be referring this video to others. Many thanks again.

As per usual great video. One small question, I am a renter and have been saving all my money in registered accounts. Can I still do the 3:1 loan even if I don't have any money in non-registered accounts?

New subscriber here

In your models, I heard nothing about rebalancing in the bond/stock portfolio. Analysis I've seen states a mixed portfolio with rebalancing will provide a reduced risk of running out of money over 100% stocks. Only slightly diminished return but lower volatility.

Can we assume the next hundred years will mirror the last hundred years?

USA. This is very informative. I don’t have time to stitch all the odd pieces together, so thank you.

Hi Ed could you help us with a video on RESP and allocations?

Simply have 2-3 year cash reserve to pull from when markets down , replenish during good times! Video is correct that must have growth stocks to sustainable retirement amount and history has proved that!

100% equity portfolio fails at higher rate than 60/40 over the last 100 years using the 4% rule... run the historical numbers include the failures from 2000 since they failed in less than 10 years. It won't fail if you are not withdrawing, but the topic was sequence of returns.

What I've learned from watching your videos, Canadian taxes are robbery.

Promo`SM 👍

Off topic, but can you name your children as a "successor holder" for your FHSA, RRSP, RRIF, TFSA? Or does it have to be a spouse?

Great info 👍

What do you think about leveraged ETFs and dollar cost averaging into them for the long long term 20+ years? Ex: QLD or HQU or HSU I love the videos and information you bring to the table. I would like to do the smith maneuver but I still need to study it and get the wife on board cuz its way over our heads with the technique haha

If you are 100% aggressive equities, what do you live on? Do you sell equities in a down market in order to pay for expenses? Be interesting to see how that affects long term growth.

Using the 4% rule to prove that the sequence of returns risk isn't dangerous is like using tank armor to prove that assault rifles aren't dangerous

Just an FYI - I'm a financial advisor, I don't use risk tolerance questionnaires, and they are not required. I do agree they are prevalent in my industry, and often used to cya when the client wants to know why they are under-performing in an up market, or experiencing more volatility than they expected. Advisors that use a questionnaire can simply point to it as the reason why.

Sorry, but it seems the video confuses index ETFs with assets allocation ETFs

So this guy says no bonds. No stable portion of your money. What if you only have $200,000 saved and you need a new car in retirement ? You take $35,000 out after the sp 500 dropped 40% ? But you need a new roof too. I don't think the average person should be 100% in stocks. It's too risky. Sequence of events applies to most people. If you have millions, pensions, go for 100% stocks.

Thanks for a great video with lots of important insights! I have no idea why this video doesn't have many more views... 🙂

I'm not sure why you kept analyzing 70% Bonds and 30% stock allocations. To make your data more applicable to the real world you should have modeled 60% stock and 40% bonds.

Ed you’re a beauty! Thanks for sharing your knowledge and insights. It is much appreciated. Keep up the great work.

Wouldn't this also work nicely for a couple? Let's say your spouse will get a $5000 refund. You get a $500 refund. If you borrow $5000, knowing you can pay it back with your spouses refund, this will increase your refund by a few thousand dollars...(based on a 43% MTR)

Obviously realized cash is not the same as maybe cash. Im afraid that the majority of investors who have biult life changing wealth disagree; Buffett; Munger; and thousands of fund managers. It is a withdrawal from your investment; cost averaged. Lowering your exposure.

Great!!