what are you selling today?

[Whensthepaintdry?]

I sold aapl in non tax accounts. 

[Red Lion]

Trimmed more APO and OWL in retirement accounts. Sold PM in retirement account as well. 

[backtothebeach]

Sold excess FFH, sniff. Back to core position.

[gfp]

2 minutes ago, backtothebeach said:

Sold excess FFH, sniff. Back to core position.

 

Even Prem sold his "excess" FFH.  Sad

[backtothebeach]

9 minutes ago, gfp said:

Even Prem sold his "excess" FFH.  Sad

 

Lol, but he sold 30% lower than me!

 

Anyway, these were trading shares, less than 1/15th of my core position. I'd happily buy them back a few percent lower, but kinda hope I'll never get the chance.

 

 

[Paarslaars]

On 12/3/2024 at 6:53 PM, Paarslaars said:

Sold out of Metaplanet, 2.5x over a couple of months is fine by me. No rights offering for shareholders this time so no need to hold this.

Of course this is up 70% in two weeks...

[formthirteen]

Some FFH and META in the tax exempted portfolio. Thank you for the returns and see you in 2025.

[Junior R]

On 12/6/2024 at 11:45 AM, gfp said:

 

Even Prem sold his "excess" FFH.  Sad

I think he sold based on proposed capital gains tax rate change in Canada

[formthirteen]

Selling more FFH.TO while thinking about buying more ELF.TO. What should I do?

[Junior R]

On 12/31/2024 at 11:53 AM, formthirteen said:

Selling more FFH.TO while thinking about buying more ELF.TO. What should I do?

Would also be interested in others prospective on ELF..it is trading undr bookvalue 

[formthirteen]

15 hours ago, Junior R said:

Would also be interested in others prospective on ELF..it is trading undr bookvalue 

 

There's some discussion here:

https://www.valueinvestorsclub.com/idea/E-L_FINANCIAL_CORP_LTD/7686942999

 

The author started selling recently, but it's still undervalued.

[treasurehunt]

Sold the last of my BAC. It was a very nice run from 2011 till now. Thank you, Brian Moynihan!

[Viking]

Exited two of my short-term tactical trades: CFP.TO (today) and Fairfax India (last week).

 

Average gain was about 6%. Held in tax-free accounts. Holding period was 2 or 3 weeks. Happy to start rebuilding a modest cash weighting. 

Edited January 6 by Viking

[SafetyinNumbers]

On 12/31/2024 at 11:53 AM, formthirteen said:

Selling more FFH.TO while thinking about buying more ELF.TO. What should I do?

I own both and this is not a switch I would do. FFH returns are structurally higher due to leverage and source of earnings. There is an index add catalyst that might result in multiple expansion. ELF returns are based mostly on the performance of VOO and quality stocks which are harder to predict and the discount closing which is also hard to predict with no natural buyers. 

[fareastwarriors]

39 minutes ago, treasurehunt said:

Sold the last of my BAC. It was a very nice run from 2011 till now. Thank you, Brian Moynihan!

 

why now?

[SafetyinNumbers]

On 12/6/2024 at 11:59 AM, backtothebeach said:

 

Lol, but he sold 30% lower than me!

 

Anyway, these were trading shares, less than 1/15th of my core position. I'd happily buy them back a few percent lower, but kinda hope I'll never get the chance.

 

 

To be fair, I think he bought those shares on margin and I’m assuming kept what he didn’t need to sell to pay off the loan.

[Junior R]

52 minutes ago, Viking said:

Exited two of my short-term tactical trades: CFP.TO (today) and Fairfax India (last week).

 

Average gain was about 6%. Held in tax-free accounts. Holding period was 2 or 3 weeks. Happy to start rebuilding a modest cash weighting. 

do you do these trades in rrsp/tfsa/rrif

[Viking]

1 hour ago, Junior R said:

do you do these trades in rrsp/tfsa/rrif

 

I do my tactical trades primarily in my (and my wife's) RRSP and LIF accounts. There are no issues with the number of trades you do (not that I plan on doing lots of tactical things during the year - it will depend on what opportunities surface). I also hold most of my index funds (VOO and XIC) in these accounts.

 

I keep my best ideas for my (and my wife's) TFSA and non-registered accounts - these are currently heavily weighted to Fairfax (and have been for the past 4 years). These accounts are for buy and hold type investments.

----------

From a tax planning perspective, I have also been trying to manage the significant tax liability building in our non-registered accounts (they are 100% Fairfax). Each year, for the past 3 years we have been selling a chunk of Fairfax in our non-registered accounts (typically when it hits an all time high). We have been able to repurchase the shares within a couple of months at the same or lower price. As a result, the number of shares we own in these accounts has generally stayed the same (to my surprise). And we do pay a modest amount of tax each year. But the tax liability today is much lower than it would have been if we have done nothing (it would be quite large today). I highly value the flexibility this gives us to use the funds in the non-registered accounts should we so decide (perhaps we decide to become a property owner again). I hate being in a straight-jacket (like having a massive tax liability on funds I might want to use one day).

 

In 2024 I pulled a lot of $ from my LIF/RRSP's to pay any taxes owed. These accounts are getting way too big. So my focus in 2024 and moving forward is to draw these accounts down to fund our living and any tax payments (and let my non-registered accounts compound). The funning thing is despite my best efforts to draw them down the RRSP/LIF's keep getting bigger in size. A great problem to have.

 

In Canada, we only pay tax on 50% of the capital gain. Despite the fact that she was a stay at home mom, my wife and I have most of our investment accounts split equally (started this process 25 years ago with spousal contributions to RRSP's). When we sold our house a few years ago, the proceeds were split equally into two non-registered accounts. Today, having the accounts balanced out over two people helps a lot when managing withdrawals / tax liability each year. 

-----------

My goal isn't to pay zero taxes. My goal is to have my assets compounding in the right vehicles (#1 = TFSA; #2 = non-registered; #3 = RRSP; #4 = LIF; #5 = RESP (as our kids are almost done university).

 

Actually, our #3 priority today is to seed our 3 kids TFSA and FHSA investment accounts. I am pulling $ from my RRSP/LIF to do this (and yes, paying the tax bill). Estate planning - but 30 years earlier than most people likely do it. Getting a significant amount of $ transferred into these accounts when out kids are still under 25 years old seems like such a no-brainer thing to do. This pretty much guarantees they will be able to retire in their 50's, if not sooner (not that they understand that right now  ). 

 

One of my big learnings in 2024 was you can have too much in RRSP/LIF accounts. Once they hit a certain size they can become the tail that wags the dog. Not good, especially later in life (+70). (Now having too much money in RRSP/LIF accounts is the problem we are all trying to create when we are younger... so, please, don't shed any tears for me an my newfound problem

 

Another goal is to have our assets split equally between my wife and me. And to also have them weighted towards TFSA, non-registered accounts, with the remainder in RRSP/LIF's. Each year I try and make one or two 'tweaks' with how we withdraw/manage our tax situation. This simple approach has worked out very well over the years - and helped keep our supertanker (financial situation) generally pointed and moving in the right direction.

Edited January 6 by Viking

[Junior R]

35 minutes ago, Viking said:

 

I do my tactical trades primarily in my (and my wife's) RRSP and LIF accounts. There are no issues with the number of trades you do (not that I plan on doing lots of tactical things during the year - it will depend on what opportunities surface). I also hold most of my index funds (VOO and XIC) in these accounts.

 

I keep my best ideas for my (and my wife's) TFSA and non-registered accounts - these are currently heavily weighted to Fairfax (and have been for the past 4 years). These accounts are for buy and hold type investments.

----------

From a tax planning perspective, I have also been trying to manage the significant tax liability building in our non-registered accounts (they are 100% Fairfax). Each year, for the past 3 years we have been selling a chunk of Fairfax in our non-registered accounts (typically when it hits an all time high). We have been able to repurchase the shares within a couple of months at the same or lower price. As a result, the number of shares we own in these accounts has generally stayed the same (to my surprise). And we do pay a modest amount of tax each year. But the tax liability today is much lower than it would have been if we have done nothing (it would be quite large today). I highly value the flexibility this gives us to use the funds in the non-registered accounts should we so decide (perhaps we decide to become a property owner again). I hate being in a straight-jacket (like having a massive tax liability on funds I might want to use one day).

 

In 2024 I pulled a lot of $ from my LIF/RRSP's to pay any taxes owed. These accounts are getting way too big. So my focus in 2024 and moving forward is to draw these accounts down to fund our living and any tax payments (and let my non-registered accounts compound). The funning thing is despite my best efforts to draw them down the RRSP/LIF's keep getting bigger in size. A great problem to have.

 

In Canada, we only pay tax on 50% of the capital gain. Despite the fact that she was a stay at home mom, my wife and I have most of our investment accounts split equally (started this process 25 years ago with spousal contributions to RRSP's). When we sold our house a few years ago, the proceeds were split equally into two non-registered accounts. Today, having the accounts balanced out over two people helps a lot when managing withdrawals / tax liability each year. 

-----------

My goal isn't to pay zero taxes. My goal is to have my assets compounding in the right vehicles (#1 = TFSA; #2 = non-registered; #3 = RRSP; #4 = LIF; #5 = RESP (as our kids are almost done university).

 

One of my big learnings in 2024 was you can have too much in RRSP/LIF accounts. Once they hit a certain size they can become the tail that wags the dog. Not good, especially later in life (+70). (Now having too much money in RRSP/LIF accounts is the problem we are all trying to create when we are younger... so, please, don't shed any tears for me an my newfound problem

 

Another goal is to have our assets split equally between my wife and me. And to also have them weighted towards TFSA, non-registered accounts, with the remainder in RRSP/LIF's. Each year I try and make one or two 'tweaks' with how we withdraw/manage our tax situation. This simple approach has worked out very well over the years - and helped keep our supertanker (financial situation) generally pointed and moving in the right direction.

Thanks @Viking for the detailed post..A lot of valuable information...What made you sell your house and what would be the trigger to buy another property? Would you try to optimize your tax situation so one day you have the possibility of collecting OAS or is that not worth it...Many people wait to drawdown on their RRSP once they retire 65+ and it causes a situion ...Its good your able to tweak as you see fit this is the key to investing, life and everything

[Viking]

47 minutes ago, Junior R said:

Thanks @Viking for the detailed post..A lot of valuable information...What made you sell your house and what would be the trigger to buy another property? Would you try to optimize your tax situation so one day you have the possibility of collecting OAS or is that not worth it...Many people wait to drawdown on their RRSP once they retire 65+ and it causes a situion ...Its good your able to tweak as you see fit this is the key to investing, life and everything

 

@Junior R , I am just starting to learn about estate planning and retirement planning. Early days. It's like light bulb went off in late 2023. I am learning there are lots of layers - so keeping things as simple as possible is very important. 

 

In terms of our decision to sell our house, it was primarily driven by our decision to move from the suburbs into the city (Vancouver). We made the decision in early 2021 when our youngest made the decision to go to UBC. This meant all three of our kids would be going to UBC. So my wife and I decided to move to the fun part of Vancouver (close to Kits). We have rented for the past 3.5 years and enjoy it.

 

We did't buy for a couple of reasons. The big one was probably because houses where we were moving to cost $2.75 million (the old fixer-uppers cost this much). Our rent was $5,000/month. Bottom line, it was much, much, much cheaper to simply rent than to own. 

 

Personal wise, moving has been one of our great decisions (for both me and my wife). We love where we live today - it is a great fit for our current life stage. Financially, it has also turned into one of our best ever decisions. Because when we got the significant proceeds from our house sale (this was back in Covid when people were desperate to move into the suburbs which drove prices to the moon) I was following a little know P/C insurance company called Fairfax Financial. The proceeds from our house sale mostly - over time - went into this one investment... and have largely remained there. Bottom line, we have been very fortunate.

 

Will we buy another home one day? Yes, I think we will. But it will likely be a terrible financial decision. and that is because of two reasons:

1.) I suspect the easy money has been made with real estate in Canada - for now (in terms of price appreciation).  

2.) I am pretty good at compounding financial investments. 

 

We could buy a nice duplex for C$2 to $2.5 million. But that would be $2 to @2.5 million I wouldn't be able to invest. 

 

So if we buy one day, it will be primarily for personal/lifestyle reasons. We will do it with the expectation that it will likely simply break even from a financial perspective. Which is OK (it is what it is). 

 

What I do is think about things enough that I have a rough plan. When the stars align - and a light bulb goes off - that is usually my trigger to do something big. Regarding buying a primary residence - the lightbulb has not gone off (yet). But I remain open minded to the possibility.

Edited January 6 by Viking

[Junior R]

1 hour ago, Viking said:

 

@Junior R , I am just starting to learn about estate planning and retirement planning. Early days. It's like light bulb went off in late 2023. I am learning there are lots of layers - so keeping things as simple as possible is very important. 

 

In terms of our decision to sell our house, it was primarily driven by our decision to move from the suburbs into the city (Vancouver). We made the decision in early 2021 when our youngest made the decision to go to UBC. This meant all three of our kids would be going to UBC. So my wife and I decided to move to the fun part of Vancouver (close to Kits). We have rented for the past 3.5 years and enjoy it.

 

We did't buy for a couple of reasons. The big one was probably because houses where we were moving to cost $2.75 million (the old fixer-uppers cost this much). Our rent was $5,000/month. Bottom line, it was much, much, much cheaper to simply rent than to own. 

 

Personal wise, moving has been one of our great decisions (for both me and my wife). We love where we live today - it is a great fit for our current life stage. Financially, it has also turned into one of our best ever decisions. Because when we got the significant proceeds from our house sale (this was back in Covid when people were desperate to move into the suburbs which drove prices to the moon) I was following a little know P/C insurance company called Fairfax Financial. The proceeds from our house sale mostly - over time - went into this one investment... and have largely remained there. Bottom line, we have been very fortunate.

 

Will we buy another home one day? Yes, I think we will. But it will likely be a terrible financial decision. and that is because of two reasons:

1.) I suspect the easy money has been made with real estate in Canada - for now (in terms of price appreciation).  

2.) I am pretty good at compounding financial investments. 

 

We could buy a nice duplex for C$2 to $2.5 million. But that would be $2 to @2.5 million I wouldn't be able to invest. 

 

So if we buy one day, it will be primarily for personal/lifestyle reasons. We will do it with the expectation that it will likely simply break even from a financial perspective. Which is OK (it is what it is). 

 

What I do is think about things enough that I have a rough plan. When the stars align - and a light bulb goes off - that is usually my trigger to do something big. Regarding buying a primary residence - the lightbulb has not gone off (yet). But I remain open minded to the possibility.

Thanks @Viking was it hard to qualify with the landlord being retired and not having a T4? I think on the house you are renting now if you paid 20% down and mortgaged the rest you would be looking at double or close to double in intrest payments lol so you saved big time...One thing you could look at if you are buying a house is to use IKBR or something to fund some of the house and get a HELOC incase you need to cover the margin...Subtract the interest during tax time to find a formula to start extracting from RRSP at a low tax rate..You could write of the interest 

 

Edited January 7 by Junior R

[treasurehunt]

5 hours ago, fareastwarriors said:

 

why now?

 

I don't think BAC is particularly cheap now and for me over time it had become too small a position to bother with. So I sold. There was no company-specific reason for my sale.

[Redskin212]

Viking, I appreciate your candor and honestly in talking about your estate planning and retirement accounts.  I can totally relate having retired this past summer and now starting to appreciate what a complex puzzle the “decumulation” of assets and cash flow planning is given the very complex tax code.  I live in the US and like you accumulated a lot (probably too many) assets in tax deferred accounts and am now in the process determining which buckets to take from and when.

i am going to plug this software I found developed by an economist, Larry Kotlikoff, 
https://maxifiplanner.com

i tried and tested numerous retirement software products and this one is the only one that made sense to make and take all aspects of the US tax code into effect when performing retirement/estate planning. I know not relevant to you Viking but couldn’t help our US board members

I am going to reread your posts a few times tonight as they help me think harder about my own similar situation

 

Thanks

 

 

 

 

[Viking]

4 hours ago, Junior R said:

Thanks @Viking was it hard to qualify with the landlord being retired and not having a T4? I think on the house you are renting now if you paid 20% down and mortgaged the rest you would be looking at double or close to double in intrest payments lol so you saved big time...One thing you could look at if you are buying a house is to use IKBR or something to fund some of the house and get a HELOC incase you need to cover the margin...Subtract the interest during tax time to find a formula to start extracting from RRSP at a low tax rate..You could write of the interest 

 

@Junior R, good question. When we were looking to rent (early 2021) lots of houses were available (compared to how tight the market normally is here in Vancouver). That helped (landlords appeared to be motivated/more flexible). We were very transparent with what we were doing (we used our real estate agent - who was also a friend - as a personal reference to help show our story checked out). I also shared our brokerage account statement with our landlords (I did not give them a hard copy).

 

The big cost if we had purchased 3.5 years ago would have been the opportunity cost. I have been able to average a return of 35% each of the last three years. On $1 million that is $350,000 per year; on $2 million that is $700,000 per year. 

 

If we do buy a home again, I probably will use some debt to make the purchase. But our situation (no day job) does create challenges. And I generally hate having to deal with banks.   

[Viking]

2 hours ago, Redskin212 said:

Viking, I appreciate your candor and honestly in talking about your estate planning and retirement accounts.  I can totally relate having retired this past summer and now starting to appreciate what a complex puzzle the “decumulation” of assets and cash flow planning is given the very complex tax code.  I live in the US and like you accumulated a lot (probably too many) assets in tax deferred accounts and am now in the process determining which buckets to take from and when.

i am going to plug this software I found developed by an economist, Larry Kotlikoff, 
https://maxifiplanner.com

i tried and tested numerous retirement software products and this one is the only one that made sense to make and take all aspects of the US tax code into effect when performing retirement/estate planning. I know not relevant to you Viking but couldn’t help our US board members

I am going to reread your posts a few times tonight as they help me think harder about my own similar situation

 

Thanks

 

@Redskin212, congratulations on your retirement. Here are some additional thoughts:

• One of my rules with financial planning is to try and keep things as simple as possible. That is one of the things I am trying to optimize for. I find professionals tend to add lots of complexity (which makes sense because that also justifies what they want to get paid).
• Retirement planning is like a marathon - I try and learn one or two important things a year. So I try and pace myself.  
• Planning software is helpful - but my experience is it is very limited looking out 5 or 10 years (so much stuff can change in one year).
• YouTube has some very good channels - I exclusively follow Canadian channels because legislation/accounts/taxes are so different between Canadian the US. I keep curating my playlist (adding and subtracting channels depending on what I am trying to learn).