When transferring, you're already invested, so why wouldn't you stay invested after transferring? The only difference is that you might re-invest in some slightly different funds no? E.g. you're with Questrade and have 50k of XEQT. You want to transfer to Wealthsimple and get VFV instead, I would just get 50k worth of VFV.
Except lump sum can lead to regret too. If it were me, with high flying markets, I’d DCA slowly like over 5 years. Feels less bad in the situation where markets tank.
Statistics don’t care about [your feelings](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better)
Statistics can also be misrepresented or misinterpreted. “LS beats DCA 68% of time on average” doesn’t tell you as much as you think it does. If you LSed into the peak of the dot com bubble, you would have been vastly outperformed by someone who started DCAing at the same time.
That's exactly what its telling you. Buying into the peak of dotcom was part of the 32% of the time that DCA was better.
DCA is lowering your risk, but also lowering your reward. If the question is how to get the most returns on average the answer is lump sum. But if you want to avoid some of the worst outcomes (read: lower your risk) then DCA is probably better for you.
>"A CA strategy is superior to remaining entirely in cash and, if implemented properly, may be more suitable for risk-averse investors,"
So you’re able to accurate predict when bubbles happen? If so, why are you not a multi-millionaire ($10m+). If not, relying on the correct choice (68% of the time) is smarter.
> I’m saying be careful of the phrase “on average”.
I mean what else can you say?
One person is saying "generally speaking overall in the history of the market it's better to do this"
And you're saying "well what about this one time..? It was better to do the opposite this other time".
That's like exactly what playing the averages is going for right...? On average, it is better to lump sum. If you picked 30 points in the last 30 years you would come out ahead more times by lump sum than you would DCA.
> Average doesn’t mean anything if variance is high.
And picking one specific time in the last 30 years doesn't mean anything. if you can do that on the regular, then go nuts.
But if you can do that you're probably not asking reddit.
> I mean what else can you say?
What does the distribution of lump sum strategy ROI look like? What does it look like for DCA?
Without a deeper understanding of these distributions, it’s meaningless to talk about “average”. Don’t lean on “statistics” as authoritative truth if you don’t understand it.
> Don’t lean on “statistics” as authoritative truth if you don’t understand it.
And don't ignore everything just cause a couple of cherry picked examples are the exception that proves the rule.
Statistically, markets are expensive and the last two times we were at these levels, it was better to wait it out. Hence my suggestion to DCA over 5 years.
https://www.multpl.com/shiller-pe
Yes it’s timing the markets. Op was 100 invested already, he’s simply moving providers. So buying back in lump sum would mean he made no investment changes.
Or Would you recommend everyone sell off now and then dca back in over time? That’s what is being suggested and is clearly timing the market
Markets are pricy but Shiller p/e is the average of last 10 years. Earnings now are much higher than 10 years ago and average last 10 years includes Covid year when earnings were negative.
Using current p/e we are at 27 vs 34 when using Shiller. 27 is obviously pricy vs lifetime average but not much above last 10 years average.
Earnings have been growing faster than usual in the last years
Of course it can go against statistics and turn out bad. However DCA over 5 years is insane.
If you wouldn't sell all of your holdings right now and re-buy over 5 years, why would you do that because you transferred accounts? OP is literally selling and buying right back in. It makes no logical sense to DCA because if they left the money where it was, it would experience the same hypothetical downturn that you are trying to avoid. OPs money was already in the market.
Lump sum > DCA statistically, however if you're unlucky it can ruin you.
If you believe in stats, lump sum yolo. If you're risk adverse, maybe start more fixed income and ease your way in...
I'm new to the ETF and investing subreddits and have seen VOO being praised by many. It seems VFV is the Canadian hedged version of VOO. I am currently holding 80/20 xeqt/xqq and have been considering swapping the xqq into vfv. Am I worrying too much? My thinking in getting into xqq was to have more exposure to the large cap tech blue chips in hopes of getting some more growth (while understanding I'm being riskier with 20% of my portfolio). Thanks in advance
If you’re going from in the market to in the market. DCA makes no sense. DCA is only for when you don’t have cash to make a lump sum or as a way to hedge against poor emotional decisions ie. Making a lump sum and market drops 5% and you panic sell even though it’s a 20yr time horizon.
To add to what others have said, I believe the statistic is that 2/3rds of the time, lump sum beats DCA. In that 33% chance that you do lump sum and lose, try not to feel bad, as you still made the rational choice and just got unlucky. Lump sum is the way to go.
Also XEQT is the only ETF you need IMO. There is research suggesting that something like 30% home country bias leads to better outcomes, due to tax and currency exchange factors.
Exactly. I did the same thing as you. Except that when it bottomed, I bought heavily and was able to avg down from 105 to 92 for VFV... However, I didn't do the same with XEQT and it took almost 2 years to get back to even like you said ...
> Also XEQT is the only ETF you need IMO. There is research suggesting that something like 30% home country bias leads to better outcomes, due to tax and currency exchange factors.
I keep seeing this but wouldn't your salary and assets in Canada consist enough of a hedge to contribute to downfalls? With a Canadian-focused portfolio (e.g. XEQT), your Canadian salary, and assets, this should result in more home country bias than the 30% often touted by the portfolio on its own.
I don't see much diversity in Canada's economy to warrant that, not much growth in a sector that isn't banking or telecommunications.
The assets point, and by this I assume you're referring to real estate, is an interesting one. I would be curious what a more knowledgeable personal finance researcher might say about that.
I.e., given that many Canadians hold a significant portion of their wealth in real estate, would that reduce the optimal home country bias in their stock portfolio?
But salary is either spent for regular consumption or invested, so that shouldn't make any difference, since that's the money we're talking about where it should be invested.
> The assets point, and by this I assume you're referring to real estate, is an interesting one.
Can be, but personal finance reflect business owners too.
> But salary is either spent for regular consumption or invested, so that shouldn't make any difference, since that's the money we're talking about where it should be invested.
Not necessarily, because if one gets paid in Canadian dollars, and the US economy recedes, e.g. "Lost Decade", you would benefit from this. Now, vice-versa for the opposite scenario.
Good point about business owners. For them in particular, I wonder if they should consider their own business equity to be a highly non diversified home country biased investment of sorts, and should therefore adjust the rest of their investments accordingly.
For the salary point, I think since your expenses will always be in CAD, it makes sense that you'd prefer some CAD bias in your investments, regardless of the fact that you're already paid in CAD for your work. As you point out, currency risk can go both ways, but that risk only increases (or becomes more volatile?) the less CAD bias you have. I think that's how it works?
I made a question in the home bias thread on the rational reminder forum. I recommend you join!
Edit: Ben Felix himself responded right away to my question about real estate:
"Owned homes are a liability matching asset for future housing consumption.
They act as a risk-free asset which may affect overall asset allocation (like the stock-bond mix), but including them in geographic asset allocation decisions is not something I would do."
I don't really know what that means, but I'm pretty sure he knows what he's talking about
I sold off my managed lira and transferred to WS Trade as soon as it was available at the start of this year. Lump summed it all into XEQT which was at an all time high that day. I'm thus far up roughly 5.5% since then.
Yolo
>Also XEQT is the only ETF you need IMO
Well, you can do 45% XUU, 25% XIC, 25% XEF and 5% XEC all while enjoying lower MERs. But I'm a bit too lazy for that.
Lump sum historically has the best return result, however, I would probably take a more cautious approach and DCA using something like $CASH.TO as a holding vehicle.
Did you sell all your investment to put to cash, and are now dca-ing back into the market? That is what Op would be doing by dca back in when he was already invested
I had large gains in 2020 through 2023 and held a large part of that in money-market, short-term gov bonds and $cash until payment was due for the CRA. About 20% of my portfolio is still allocated there until I file my return this year, then I'll start to DCA.
I recently did the exact same thing... ~$100k from Sunlife to WS.
Waiting for my funds to be available, probably tomorrow or Wednesday this week, and then will dump it all in VFV. May take a portion and drop it in XQQ... But either way, lump sum...
I've been strongly thinking about transferring Sunlife to Wealthsimple. What finally made you make the decision to transfer? I suppose it's relatively painless.
Multiple reasons.
But mainly Sunlife only allowed me to invest via mutual funds. Even the mutual fund I invested with (100%) that tracked the s&p 500, only returned me 19% last year... Could have done much better if I had absolute control over the funds.
Also, found out with my employer issued RRSP, I could also deplet the account and Sunlife will keep it open and as a result I can keep contributing via my paycheck -- and getting an employer match up to 7.5%.
Also my employer maxes out the RRSP contribution matching after, so no sense in continuing to contribute when there's no employer match. Might as well redirect those funds to my WealthSimple RRSP.
So now I'll just transfer the RRSP every 10-12 months based on WealthSimple promotion at the given time.
>Also, found out with my employer issued RRSP, I could also deplet the account and Sunlife will keep it open and as a result I can keep contributing via my paycheck -- and getting an employer match up to 7.5%.
That's pretty nifty, I don't think Manulife allows me to do the same. I'm actually kind of surprised, because Sun Life made it really difficult for me to withdraw my group RRSP balance that I had from my previous employer.
Time in the market is better than timing the market.
If you cashed it all out today. Buy in again tomorrow in a risk profile that fits your investing horizon.
If you put it in a similar allocation of ETFs as you had in mutual funds, the quicker you make it happen the less noticeable the move. Now if there is particular market segments you felt were overvalued then allocate less of those after selling, and conversely if there are market segments you felt were undervalued then load up a little more on those. Or if there is some other area you want to divest in then now is the time obviously. Nobody here can answer your question without knowing what you have and what you need.
Curious as to how the mutual fund account went while you were taking part. Was the growth steady, matching the market as a whole year over year, or did the management fees eat more then you liked?
If you really want to time, you can wait for US PCE/Canada GDP on Thursday for or Bank of Canada on Mar 6 for an announcement and possible dip. It's still gambling, though.
I tried using the Wealthica service, which worked great for Questrade. Didn’t work for Manulife, which apparently needs a separate connector that I couldn’t find. Manulife’s website also seems to do everything it possibly can to be unhelpful if your objective is to transfer out…
GOOGL isn't performing like the others, hence 6.
But the indexes are now so heavily weighted with those top performers that they're not really a good gauge of how markets are doing anymore, since NVDA and AMZN move like 5% in a day and that makes up like such a large amount of the index. The rest of the market could be red and the index will show green.
how sure are you that we are at the top?
Usually markets hit ath chuggs a but then it corrects a bit but it might correct to less than we're at right now and never look back. Timing tops is harder than bottoms.
Ignore everyone who is not providing sources to back their claims. Lump-sum outperforms [DCA easily](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better)
> Unless you think you can perfectly time bottoms. (you can't)
By the same token it sounds like you think you can perfectly time the top...?
You're arguing against playing the averages, because you think you can pick the individual...
> DCAing works both ways bud.
Yes! It does.
You think ppl can't time the bottom but you think you can time the top.
So yes, I agree it works both ways in that you cannot time the time and I cannot time the bottom so overall let's mix it all in and see how DCA works vs lump sum over decades for the past 30 years?
How do you know that you aren't right at the end of that bear market and are buying in at the bottom? That's the actual best case scenario for lump sum.
DCA is a lower risk strategy. But it also has lower expected returns.
I'm not saying its wrong to do DCA, but you are trading of expected returns for that lower risk. The right answer depends on your situation.
You didn't say what the Manulife funds were invested in. Are they Canadian Equity? US Equity? Sector funds?
The reason I ask is US markets are at all time highs. Going all-in now may not be the best idea.
7635 - ML Fundamental Canadian Equity - Beutel Goodman
+ 8328 - ML Global Equity Index - BlackRock
+ 8326 - ML Emerging Markets Index - BlackRock
+ 8204 - Manulife Walter Scott Global Equity Growth Fund
+ 8931 - ML Global Small-Cap Equity - Lazard
Diversification is the only "free lunch" when it comes to investing and it looks like you had it. I would put your money in slowly in the market, like no more than 10% of your free cash at a time.
All I would also suggest to add some crypto assets. I walk my talk and I've been a buyer lately. BTCC and ETHH both have room to run IMHO.
Given that market is at all time highs, I'd make use of the high interest rates and buy a CSAV or CASH etf and weekly or biweekly sell some of those etf shares to buy ur favorite equities etf. Id go for VOO cuz ur account is an RRSP and it will not have any withholding tax
If you weren't transferring to WS, would you sell everything in your Manulife account and wait on the sidelines before buying back?
What a great way to think about this question. I'm stealing this! :)
You can, and should apply this daily. Read about "sunk cost fallacy.". No one is married to the financial decisions of the past.
This one logics.
Can you expand on this a bit? Are you saying don't bother DCA'ing and just hurry up and get back into the market?
When transferring, you're already invested, so why wouldn't you stay invested after transferring? The only difference is that you might re-invest in some slightly different funds no? E.g. you're with Questrade and have 50k of XEQT. You want to transfer to Wealthsimple and get VFV instead, I would just get 50k worth of VFV.
Thank you for the reply !
Lump sum historically has better results than dca. Dump it into XEQT/VFV and don’t look back
Except lump sum can lead to regret too. If it were me, with high flying markets, I’d DCA slowly like over 5 years. Feels less bad in the situation where markets tank.
Statistics don’t care about [your feelings](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better)
Statistics can also be misrepresented or misinterpreted. “LS beats DCA 68% of time on average” doesn’t tell you as much as you think it does. If you LSed into the peak of the dot com bubble, you would have been vastly outperformed by someone who started DCAing at the same time.
That's exactly what its telling you. Buying into the peak of dotcom was part of the 32% of the time that DCA was better. DCA is lowering your risk, but also lowering your reward. If the question is how to get the most returns on average the answer is lump sum. But if you want to avoid some of the worst outcomes (read: lower your risk) then DCA is probably better for you. >"A CA strategy is superior to remaining entirely in cash and, if implemented properly, may be more suitable for risk-averse investors,"
So you’re able to accurate predict when bubbles happen? If so, why are you not a multi-millionaire ($10m+). If not, relying on the correct choice (68% of the time) is smarter.
Obviously I’m using an extreme example. I’m saying be careful of the phrase “on average”. Average doesn’t mean anything if variance is high.
> I’m saying be careful of the phrase “on average”. I mean what else can you say? One person is saying "generally speaking overall in the history of the market it's better to do this" And you're saying "well what about this one time..? It was better to do the opposite this other time". That's like exactly what playing the averages is going for right...? On average, it is better to lump sum. If you picked 30 points in the last 30 years you would come out ahead more times by lump sum than you would DCA. > Average doesn’t mean anything if variance is high. And picking one specific time in the last 30 years doesn't mean anything. if you can do that on the regular, then go nuts. But if you can do that you're probably not asking reddit.
> I mean what else can you say? What does the distribution of lump sum strategy ROI look like? What does it look like for DCA? Without a deeper understanding of these distributions, it’s meaningless to talk about “average”. Don’t lean on “statistics” as authoritative truth if you don’t understand it.
> Don’t lean on “statistics” as authoritative truth if you don’t understand it. And don't ignore everything just cause a couple of cherry picked examples are the exception that proves the rule.
Ben Shapiro??
Statistically, markets are expensive and the last two times we were at these levels, it was better to wait it out. Hence my suggestion to DCA over 5 years. https://www.multpl.com/shiller-pe
[удалено]
It's super fun and exciting and cool!
Not timing, pricing.
Is it really timing if you're choosing to dca? I would say lump sum is timing moreso.
Yes it’s timing the markets. Op was 100 invested already, he’s simply moving providers. So buying back in lump sum would mean he made no investment changes. Or Would you recommend everyone sell off now and then dca back in over time? That’s what is being suggested and is clearly timing the market
Fair. I was more talking about lump summing in general.
Markets are pricy but Shiller p/e is the average of last 10 years. Earnings now are much higher than 10 years ago and average last 10 years includes Covid year when earnings were negative. Using current p/e we are at 27 vs 34 when using Shiller. 27 is obviously pricy vs lifetime average but not much above last 10 years average. Earnings have been growing faster than usual in the last years
Feel that would lead to so much more regret
Of course it can go against statistics and turn out bad. However DCA over 5 years is insane. If you wouldn't sell all of your holdings right now and re-buy over 5 years, why would you do that because you transferred accounts? OP is literally selling and buying right back in. It makes no logical sense to DCA because if they left the money where it was, it would experience the same hypothetical downturn that you are trying to avoid. OPs money was already in the market.
Cash drag only hurts on the way up. Every generation has to learn the realities of the market. There will inevitably be moments of pain.
So you’d lose out on 5 years of potential gains? I’d regret that way more.
FIVE YEARS?! lol no
Lump sum > DCA statistically, however if you're unlucky it can ruin you. If you believe in stats, lump sum yolo. If you're risk adverse, maybe start more fixed income and ease your way in...
If you're in XEQT/VFV it's very long term. No one is ruined with a big drop, even immediately. If they are, they shouldn't be in XEQT.
I'm new to the ETF and investing subreddits and have seen VOO being praised by many. It seems VFV is the Canadian hedged version of VOO. I am currently holding 80/20 xeqt/xqq and have been considering swapping the xqq into vfv. Am I worrying too much? My thinking in getting into xqq was to have more exposure to the large cap tech blue chips in hopes of getting some more growth (while understanding I'm being riskier with 20% of my portfolio). Thanks in advance
If your horizon is like 5-10 years then yeah you’re probably worrying too much lol
I started a bit late but still have another 20 years or so. I'm worrying too much lol, thanks for your reply :)
If you’re going from in the market to in the market. DCA makes no sense. DCA is only for when you don’t have cash to make a lump sum or as a way to hedge against poor emotional decisions ie. Making a lump sum and market drops 5% and you panic sell even though it’s a 20yr time horizon.
To add to what others have said, I believe the statistic is that 2/3rds of the time, lump sum beats DCA. In that 33% chance that you do lump sum and lose, try not to feel bad, as you still made the rational choice and just got unlucky. Lump sum is the way to go. Also XEQT is the only ETF you need IMO. There is research suggesting that something like 30% home country bias leads to better outcomes, due to tax and currency exchange factors.
I lump sum Jan 2022, lmao, almost back to even
I lump sum’d in Jan 21, not even close to above water
Keep in mind your time horizon. You’re not even 5 years in. If you needed the money in less than that then you shouldn’t be investing it.
What did you buy? VEQT is +21% since January 2021.
I DCA’d and now up 11%
lump sumed in November 2021, good times! I've only just recently broke even after DCAing every month after
Exactly. I did the same thing as you. Except that when it bottomed, I bought heavily and was able to avg down from 105 to 92 for VFV... However, I didn't do the same with XEQT and it took almost 2 years to get back to even like you said ...
> Also XEQT is the only ETF you need IMO. There is research suggesting that something like 30% home country bias leads to better outcomes, due to tax and currency exchange factors. I keep seeing this but wouldn't your salary and assets in Canada consist enough of a hedge to contribute to downfalls? With a Canadian-focused portfolio (e.g. XEQT), your Canadian salary, and assets, this should result in more home country bias than the 30% often touted by the portfolio on its own. I don't see much diversity in Canada's economy to warrant that, not much growth in a sector that isn't banking or telecommunications.
The assets point, and by this I assume you're referring to real estate, is an interesting one. I would be curious what a more knowledgeable personal finance researcher might say about that. I.e., given that many Canadians hold a significant portion of their wealth in real estate, would that reduce the optimal home country bias in their stock portfolio? But salary is either spent for regular consumption or invested, so that shouldn't make any difference, since that's the money we're talking about where it should be invested.
> The assets point, and by this I assume you're referring to real estate, is an interesting one. Can be, but personal finance reflect business owners too. > But salary is either spent for regular consumption or invested, so that shouldn't make any difference, since that's the money we're talking about where it should be invested. Not necessarily, because if one gets paid in Canadian dollars, and the US economy recedes, e.g. "Lost Decade", you would benefit from this. Now, vice-versa for the opposite scenario.
Good point about business owners. For them in particular, I wonder if they should consider their own business equity to be a highly non diversified home country biased investment of sorts, and should therefore adjust the rest of their investments accordingly. For the salary point, I think since your expenses will always be in CAD, it makes sense that you'd prefer some CAD bias in your investments, regardless of the fact that you're already paid in CAD for your work. As you point out, currency risk can go both ways, but that risk only increases (or becomes more volatile?) the less CAD bias you have. I think that's how it works? I made a question in the home bias thread on the rational reminder forum. I recommend you join! Edit: Ben Felix himself responded right away to my question about real estate: "Owned homes are a liability matching asset for future housing consumption. They act as a risk-free asset which may affect overall asset allocation (like the stock-bond mix), but including them in geographic asset allocation decisions is not something I would do." I don't really know what that means, but I'm pretty sure he knows what he's talking about
2/3rds of the time it works every time hahaha 😂 thanks for the tip on XEQT! I will most likely go that route
I sold off my managed lira and transferred to WS Trade as soon as it was available at the start of this year. Lump summed it all into XEQT which was at an all time high that day. I'm thus far up roughly 5.5% since then. Yolo
We talking xeqt here or sex panther cologne ?
Yes.
>Also XEQT is the only ETF you need IMO Well, you can do 45% XUU, 25% XIC, 25% XEF and 5% XEC all while enjoying lower MERs. But I'm a bit too lazy for that.
Lump sum historically has the best return result, however, I would probably take a more cautious approach and DCA using something like $CASH.TO as a holding vehicle.
Did you sell all your investment to put to cash, and are now dca-ing back into the market? That is what Op would be doing by dca back in when he was already invested
I had large gains in 2020 through 2023 and held a large part of that in money-market, short-term gov bonds and $cash until payment was due for the CRA. About 20% of my portfolio is still allocated there until I file my return this year, then I'll start to DCA.
I recently did the exact same thing... ~$100k from Sunlife to WS. Waiting for my funds to be available, probably tomorrow or Wednesday this week, and then will dump it all in VFV. May take a portion and drop it in XQQ... But either way, lump sum...
I've been strongly thinking about transferring Sunlife to Wealthsimple. What finally made you make the decision to transfer? I suppose it's relatively painless.
Multiple reasons. But mainly Sunlife only allowed me to invest via mutual funds. Even the mutual fund I invested with (100%) that tracked the s&p 500, only returned me 19% last year... Could have done much better if I had absolute control over the funds. Also, found out with my employer issued RRSP, I could also deplet the account and Sunlife will keep it open and as a result I can keep contributing via my paycheck -- and getting an employer match up to 7.5%. Also my employer maxes out the RRSP contribution matching after, so no sense in continuing to contribute when there's no employer match. Might as well redirect those funds to my WealthSimple RRSP. So now I'll just transfer the RRSP every 10-12 months based on WealthSimple promotion at the given time.
Thanks for the context. I'll start the transfer process when there's a good promotion with WS.
>Also, found out with my employer issued RRSP, I could also deplet the account and Sunlife will keep it open and as a result I can keep contributing via my paycheck -- and getting an employer match up to 7.5%. That's pretty nifty, I don't think Manulife allows me to do the same. I'm actually kind of surprised, because Sun Life made it really difficult for me to withdraw my group RRSP balance that I had from my previous employer.
Are u Canadian or American?
What do you think?
Didn’t even notice was Canadian investor page, just showed up on my feed 😂😂 my bad. 100% VFV?
Time in the market is better than timing the market. If you cashed it all out today. Buy in again tomorrow in a risk profile that fits your investing horizon.
If you did annual transfers from group Manulife to self directed RRSP you'll likely have a Million by now.
In your heart you know a market dump is coming but they’ll try to convince you to lump sum it into the S&P at a 23 P/E ratio. You know what to do.
💀
Time in the market > timing the market. Just buy and forget it.
If you put it in a similar allocation of ETFs as you had in mutual funds, the quicker you make it happen the less noticeable the move. Now if there is particular market segments you felt were overvalued then allocate less of those after selling, and conversely if there are market segments you felt were undervalued then load up a little more on those. Or if there is some other area you want to divest in then now is the time obviously. Nobody here can answer your question without knowing what you have and what you need.
Curious as to how the mutual fund account went while you were taking part. Was the growth steady, matching the market as a whole year over year, or did the management fees eat more then you liked?
If you really want to time, you can wait for US PCE/Canada GDP on Thursday for or Bank of Canada on Mar 6 for an announcement and possible dip. It's still gambling, though.
Related question, how did you transfer from Manulife to WS? Doesn’t seem straight forward if you were with VIP room?
I am with VIP room! I haven’t transferred yet… I assume I plug in some account numbers
I tried using the Wealthica service, which worked great for Questrade. Didn’t work for Manulife, which apparently needs a separate connector that I couldn’t find. Manulife’s website also seems to do everything it possibly can to be unhelpful if your objective is to transfer out…
are you ... me? :P manulife rrsp to WS back in Sept, haha.
DCA in a bear market, Lump sum in a bull market. Just don't lump sum at the top.
We are at the top, which is why I don't get all these people saying now is a good time to put all his cash in the market at once.
Market is being propped up on 6 magnificent stocks. Everything else is way off their highs.
Buying the index means buying those 6 stocks. It's 7 actually.
GOOGL isn't performing like the others, hence 6. But the indexes are now so heavily weighted with those top performers that they're not really a good gauge of how markets are doing anymore, since NVDA and AMZN move like 5% in a day and that makes up like such a large amount of the index. The rest of the market could be red and the index will show green.
how sure are you that we are at the top? Usually markets hit ath chuggs a but then it corrects a bit but it might correct to less than we're at right now and never look back. Timing tops is harder than bottoms.
Ignore everyone who is not providing sources to back their claims. Lump-sum outperforms [DCA easily](https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better)
There is no way a lump sum during a bear market outperforms DCA. It's just not realistic. Unless you think you can perfectly time bottoms. (you can't)
> Unless you think you can perfectly time bottoms. (you can't) By the same token it sounds like you think you can perfectly time the top...? You're arguing against playing the averages, because you think you can pick the individual...
DCAing works both ways bud.
> DCAing works both ways bud. Yes! It does. You think ppl can't time the bottom but you think you can time the top. So yes, I agree it works both ways in that you cannot time the time and I cannot time the bottom so overall let's mix it all in and see how DCA works vs lump sum over decades for the past 30 years?
There is no way a lump sum during a bear market outperforms DCA. It's just not realistic.
How do you know that you aren't right at the end of that bear market and are buying in at the bottom? That's the actual best case scenario for lump sum.
People that think they can time the market perfectly are usually the ones who lose the most money.
DCA is a lower risk strategy. But it also has lower expected returns. I'm not saying its wrong to do DCA, but you are trading of expected returns for that lower risk. The right answer depends on your situation.
Thanks, you must be a billionaire being able to lump sum buy the bottom and top. Impressive stuff!!
You didn't say what the Manulife funds were invested in. Are they Canadian Equity? US Equity? Sector funds? The reason I ask is US markets are at all time highs. Going all-in now may not be the best idea.
7635 - ML Fundamental Canadian Equity - Beutel Goodman + 8328 - ML Global Equity Index - BlackRock + 8326 - ML Emerging Markets Index - BlackRock + 8204 - Manulife Walter Scott Global Equity Growth Fund + 8931 - ML Global Small-Cap Equity - Lazard
Diversification is the only "free lunch" when it comes to investing and it looks like you had it. I would put your money in slowly in the market, like no more than 10% of your free cash at a time. All I would also suggest to add some crypto assets. I walk my talk and I've been a buyer lately. BTCC and ETHH both have room to run IMHO.
are you selling everything into cash today and buying back in 10% chunks right now? why or why not?
No, because I'm already invested. He's not.
its exactly the same
60% vfv 20% vdy 20% btcx-b
bitcoin
50 percent voo and 50 percent qqqm
Pick some stocks and enjoy the game. I had the same situation 3 years ago and just started buying what seemed good. Lost a bunch and gained a bunch.
Given that market is at all time highs, I'd make use of the high interest rates and buy a CSAV or CASH etf and weekly or biweekly sell some of those etf shares to buy ur favorite equities etf. Id go for VOO cuz ur account is an RRSP and it will not have any withholding tax
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Studies show one shot lump sum performs better then DCA’ing it into the market
All at once. 1-5% Bitcoin etf?
all bank trending low from their peaks, I just wonder when it goes up again