03-17-2015, 01:04 AM
So im just throwing this out there since ive been scouring the portfolio section of the forum and noticed that there are a bunch of US only portfolios. Now i totally understand that generally american equities tend to have better growth numbers, are diversified better over a number of sectors, and have superior brand presence and enough cultural capital to dominate respective fields.
But im theorizing if an all canadian folio is possible. There are a few reasons that might might tip scales. 1) currency risk 2) canadian equities are given preferential tax treatment in non registered accounts canadian divindeds. the number is something like if your total income in retirement was 65,000 earned solely off dividends you only pay 10% vs roughly 30% if you made it by working. 3) us equities are locked into registered accounts which tax you if you withdraw from before you are 71. Technically wont be so bad if you dont sell the stocks but still relatively not liquid 4) ease of use.
Is this possible if you try to remain evenly weighted in all 8 major sectors with canadian equities and balance this with american and intl index funds?
Or am i just being dumb and it's KO, PG, KMI, JNJ, XOM over everything?
But im theorizing if an all canadian folio is possible. There are a few reasons that might might tip scales. 1) currency risk 2) canadian equities are given preferential tax treatment in non registered accounts canadian divindeds. the number is something like if your total income in retirement was 65,000 earned solely off dividends you only pay 10% vs roughly 30% if you made it by working. 3) us equities are locked into registered accounts which tax you if you withdraw from before you are 71. Technically wont be so bad if you dont sell the stocks but still relatively not liquid 4) ease of use.
Is this possible if you try to remain evenly weighted in all 8 major sectors with canadian equities and balance this with american and intl index funds?
Or am i just being dumb and it's KO, PG, KMI, JNJ, XOM over everything?