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Discussion Starter · #1 ·
Time to start my first TFSA. I want to pick one or more ETFs with somewhat risky portfolios. As I know little about tracking them, I think a passive management strategy would be best.
It seems that WealthSimple and Questrade are the recommended investment firms, for reasons of cost and number of portfolio options. Robo Advisors have been suggested, as have simulators.
Comments and suggestions are appreciated.
 

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I put bonds, reits and most US stocks in my rrsp, Put low div payer cdn and some us stocks in tfsa, and canadian div payers in non registered account.

You need to explain what you have allocated elsewhere for any of us to chime in sensibly.

Last few weeks you were sorting MF ratings, and now are contemplating ETF's si you are making progress. Congrats.
 

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My suggestion is to pick an account provider first. Write out the Pros and Cons on a piece of paper or type out on a spreadsheet/text processor of your choice. Then decide. Keep in mind, you can always change the account provider later just like a bank account. Get through the First Time Challenges so that you can set up the account, fund the account and execute a buy order (price limit, or market; time duration for limit order, etc.).

Second part is what to invest in that suits your risk tolerance levels. Please stay away from fast moving instruments like bitcoins, etc. Passive instrument like ETFs maybe better for first time investors. It is like mutual funds except buy & sale is handled like a stock. We are in a bull market cycle, other than the COVID dip, so be careful with buying high valuation stocks.

Two thoughts - follow what Warren Buffet said just “buy low cost S&P index fund”; or something like a blend etf VEQT, or a balanced etf VGRO.
 

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The choice of brokeage/investment firm should normally be independent of product selection and done first. Robo-advisors like Wealthsimple Invest and RBC InvestEase have pre-packaged porfolios using one or more product families, but limit you to those product families. You simply decide how aggressive or conservative you wish to be.

DIY discount brokerage firms like Questrade and Interactive Brokers provide a universe of ETF products that are traded on stock exchanges. What are you looking for? Robo-advisor or DIY discount brokerage?
 

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Discussion Starter · #7 ·
I put bonds, reits and most US stocks in my rrsp, Put low div payer cdn and some us stocks in tfsa, and canadian div payers in non registered account.

You need to explain what you have allocated elsewhere for any of us to chime in sensibly.

Last few weeks you were sorting MF ratings, and now are contemplating ETF's si you are making progress. Congrats.
The choice of MF was settled; my RSP now has abt 40% fixed income and 60% equities. I don't want to put more in there. The MER's are very high.
I now have some cash sitting around in a savings account that is earning interest that affects my government perks. And so the best place to put that is in TFSAs. The amount is a fraction of the value of the RRSP and so I want to head into riskier investments - 20/80 let's say. Now, I don't have much time to monitor these closely and I want to keep costs down, but what to pick to get that??
 

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Discussion Starter · #8 ·
The choice of brokeage/investment firm should normally be independent of product selection and done first. Robo-advisors like Wealthsimple Invest and RBC InvestEase have pre-packaged porfolios using one or more product families, but limit you to those product families. You simply decide how aggressive or conservative you wish to be.

DIY discount brokerage firms like Questrade and Interactive Brokers provide a universe of ETF products that are traded on stock exchanges. What are you looking for? Robo-advisor or DIY discount brokerage?
Good point. Not easy to know where to start. Been looking at Vanguard as a provider for the moment.
 

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Good point. Not easy to know where to start. Been looking at Vanguard as a provider for the moment.
Vanguard is a provider of product only in Canada, not as a brokerage. IOW, you cannot open an account with Vanguard. You will most likely need to go to a DIY discount broker to be able to buy these off stock exchanges (US and Canada), albeit in theory you may be able to buy Vanguard products through Wealthsimple Trade (as compared to Wealthsimple Invest). I think you'd be much better off with something like Questrade if you are making your own investment decisions.
 

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Good point. Not easy to know where to start. Been looking at Vanguard as a provider for the moment.
Vanguard is a good ETF provider. However, as AltaRed said, you'll need a broker in order to buy their ETF.

I like the brokerage attached to my bank, because it makes it very convenient to move money into or out of it into my bank account. If you take a third-party brokerage like Questrade, it takes a bit longer, and is more inconvenient, to move money.

Commissions are a bit higher at the bank brokerages but you won't be making a lot of transactions so that shouldn't matter to you.
 

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The provider shouldn't really matter, but it really boils down to ETFs or TD eFunds according to CanadianCouchPotato, which is a great site.
 

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Discussion Starter · #13 ·
Vanguard is a provider of product only in Canada, not as a brokerage. IOW, you cannot open an account with Vanguard. You will most likely need to go to a DIY discount broker to be able to buy these off stock exchanges (US and Canada), albeit in theory you may be able to buy Vanguard products through Wealthsimple Trade (as compared to Wealthsimple Invest). I think you'd be much better off with something like Questrade if you are making your own investment decisions.
Ahhh. Now it makes sense. The website never made it clear that I was going to deal with a U.S. Vanguard Broker. And good point about Wealthsimple Trade vs Wealthsimple Invest.
 
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