This strategy seems too simple to be true. Can anyone point out any negative points against the Canadian Couch Potato TD e-Series Funds strategy?
This is a very good idea, and the TD e-series are excellent. The Couch Potato method is totally solid.
You're right, it does seem too simple to be true, but this is legit. This tried-and-true investment method is called "asset allocation" and the Couch Potato portfolios are just implementations of this.
The negative points (or challenges you will encounter) are nearly entirely behavioural / psychological in nature. Here are some I can think of:
Conflicting views/advice and peer pressure: This is demonstrated by
@robfordlives , so here's a real life example. No matter what strategy you start following, you will encounter people who don't like some part of it for whatever reason. You will have to gain enough confidence in your method (and the allocation weights) so that you aren't swayed by other people. That includes experts as well. Experts don't all agree on the same thing. You have to absolutely make sure that you aren't constantly changing your investment mix... this is going to be the hardest part. I promise you this is the hardest part.
Disappointing periods: No matter which couch potato mix you choose (which asset allocation), you will encounter some poor performance along the way. You need dedication and confidence to stick with your investment plan. For example when I started my own asset allocation mix, I had a zero return in the first year and it was immediately disappointing. The first two years were actually quite poor. Today however after 5 years, I've had over 7% annual return. You will only see the great results in the long term.
Market drops and crashes: Many people give up on their portfolios during market crashes and frightening economic news. Make sure you choose a conservative enough allocation that you aren't scared away during market crashes. The market can crash at any moment, always... the stock market is
always scary. Couch Potato can't protect you from this cold hard reality.
Sticking with the plan: This is the key. Couch Potato methods are long term investments, and it's very hard for most people (including me) to stick with such long term plans. You have to control your itchy trigger fingers and fight the temptation to sell a disappointing investment, and to deviate from the plan.
It's hard to stick with the plan. That's the challenge with Couch Potato. The actual method is rock solid. You already saw in this thread that it only took about 27 minutes after you posted to hear the first challenge to the plan. Now imagine that happening constantly over 30 years.
People will tell you to do dividend growth investment instead, they'll tell you to invest in bitcoin instead, or to give up on stocks and invest in real estate. You'll hear this stuff endlessly. Will it disrupt your plan?