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I would keep it simple with one of the all-in-one Asset Allocation ETFs, especially for a "new" DIYer. What Gardner is doing is perfectly fine BUT one has to know why they want individual control of the 5 major slices of the pie, i.e. XIC (Canada), ZAG (Aggregate Cdn bond), ZEA (Europe/Asia) and VUN (USA) and in what percentages.....and why they want to be different in percentages than one of the Asset Allocation ETFs, e.g. VGRO/XGRO for an 80/20 solution, et al.

It is far too easy to get caught up into herd mentality, chasing performance, pre-maturely selling under performing sectors/regions, etc, etc. Such behaviour usually hurts performance because investors get it wrong.

As for moving funds from IG in chunks, that may feel easier and be 'more in control', but the OP needs to check that IG won't charge exorbitant transfer out fees for each transfer. Many times, it is best to just cut the cord and 'go'.
 

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I would transfer it all out at once. Less opportunity for the IG folks to get you to doubt your decision and less fees. As for your new investments, I would average into whichever vanilla etf you choose with the bulk of the money. The number of buys and length of time to do so is a personal choice. Mathematically, most say buying all in one shot is always best but that is because more often than not markets go up more than they go down. I dumped a chunk of money into the market in February near all time highs for the market. I have a hard time leaving cash sit as I get no return on cash. Had I waited I may have got some better prices. Or perhaps I would have got excited for even better deals and missed out entirely. It's best to pick a set number of buys a set amount of time in advance and buy at or below market as scheduled. In the meantime read up and enjoy DIY. You will likely find it is one of the best things you can do for your investment returns. The savings in MER will likely help juice your returns over the long haul.
 

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Why should the OP average in once the funds are transferred? If the OP is fully invested now at IG, why shouldn't the OP be fully invested immediately at the new institution? Anything less than fully invested would be a change of strategy.

Would you sell everything you have today in your portfolio and then immediately start averaging in next week? That is effectively what you are suggesting the OP to do.

No one knows today whether equity markets have bottomed and are, as of today, on their way back up, or whether we will be in a dead cat bounce circa Dec 2008 and we will have a new low like we did in Mar 2009.
 

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Discussion Starter · #24 ·
Thanks to all of you. I pulled a big chunk of money out of IG last week... they were good about it - not too many questions. I've transferred the money over to TD Direct Inv -- started buying good value ETFs.
Some of the money I've taken out was in short-term investments. I'm putting it in safe places, setting it aside to pay off our house within 3 years. (annual lump sum without penalty is $89K, ---- $370K left on the mortgage @ 1.99%, 3 years left on a 5 year fixed).
For short term investments (1-2 yr horizon), don't GIC's seem like a pretty good deal right now. (eg. 1 yr GIC Royal Bank @ guaranteed ~4%). Any reason to go with a bond etf over a guaranteed decent return?

Thanks again! This forum is fantastic.
 

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annual lump sum without penalty is $89K
Check if you can also increase your payments. Sometimes they will also let you up to double your payments without penalty. This can be another way to accelerate discharge.

While I am generally a big fan of paying off the debt fast, since your mortgage rate is below the HISA rate or 3Y GIC rate, you might be better off to drag it out and save the cash in a GIC and then discharge it in three years.
 

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Discussion Starter · #26 ·
Thanks, Gardner -
Yes, I maxed my monthly mortgage payments - allowable is about double my previous weekly payment).
Great suggestion -- putting the mortgage $ I have set aside into a 3 yr GIC (which hover around 4.5% right now).

Dumb question: posted 3 yr GIC rates (let's say 4.5%) is the annual return... not the return for the 3 yr period?

Mortgage money aside, I'm all in on the 80/20 mix outlined by Canadian Couch Potato (long term plan).

Thanks!
 

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It depends on whether the cash is in a taxable or registered account. In a taxable account, 4% is only 2-3% after tax. Similarly, 3% is only 1.5-2% after tax.There are few reasons (ways) to make it profitable to invest vs pay off a 1.99% mortgage on an after tax basis.
 

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Discussion Starter · #30 ·
UPDATE - the slow and steady withdrawals from IG to TD Dir continue. Been putting longterm funds in the 80/20 (equ/bond) etf, I think I'll put the money I need Jan 1/23 (mortgage lump) in a short term (180 day) GIC. The money I'll need Jan1/24 (another lump sum) I may put in a 1 yr GIC. I have a deep hatred of debt. I want to clear that mortgage as soon as I can - makes me feel good. The beers on the patio will taste better. After that, I'll be throwing everything I can at the 80/20 etf... with hopes of retiring in 10 to12 years (54-56). That's the dream anyway...
Although, by then, my kids will be teenagers... and they may not be talking to me... so work might be appealing.😁

Thanks again for all your advice!
 

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UPDATE - the slow and steady withdrawals from IG to TD Dir continue. Been putting longterm funds in the 80/20 (equ/bond) etf, I think I'll put the money I need Jan 1/23 (mortgage lump) in a short term (180 day) GIC. The money I'll need Jan1/24 (another lump sum) I may put in a 1 yr GIC. I have a deep hatred of debt. I want to clear that mortgage as soon as I can - makes me feel good. The beers on the patio will taste better. After that, I'll be throwing everything I can at the 80/20 etf... with hopes of retiring in 10 to12 years (54-56). That's the dream anyway...
Although, by then, my kids will be teenagers... and they may not be talking to me... so work might be appealing.😁

Thanks again for all your advice!
Well done @handwege11. Looks like we are on similar paths. I have a debt aversion but did not prioritize killing the mortgage when rates were extremely low. The mortgage has been our only debt for quite sometime Instead I opted mix of investing and debt repayment. I will tilt that allocation more towards I have kept most of my cash in 1 yr redeemable terms as the rates normalize. We also plan to retire in about 10 years but could see that target move up or down based on a few factors including what our offspring is doing. Another factor will be the state of our aging parents who are in their mid 70s and mid 80s. Congrats on making the move to DIY.
 

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Discussion Starter · #32 ·
Thanks, @londoncalling - Appreciate the encouragement and I wish you the best with your retirement plans. We also have aging parents -- so there are many variables that could shift our plans. But in general... we're optimistic about our plans. My wife is 9 years younger than me - so she may want to keep working and that may inspire me to do the same. But we're hoping that we can travel with the kids and show them the corners of the world we didn't get to see. Fingers crossed.
All the best!
 
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