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February 7, 2019
6:13 am
savemoresaveoften
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March 30, 2017
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While getting some USD is NOT a bad way to diversify, I dont think its effective given the size of their portfolio. Keep in mind even if the USD funds end up buying US dividend stocks, it does not have dividend tax credit like Cad dividends. Unless they are spending a lot of USD cash every year, buying USD at ~1.32 is not exactly the best level (the range has been ~0.92-1.60 in the last 20 years). Usdcad inflation is more tied to consumer discretionary goods (golf clubs, electronics, etc) than basic staples like groceries in general.

Re getting a real estate for income purpose, is their plan to buy it outright or take out a mortgage ? Since they are retired, mortgage rate will be high and also what if they lose tenant for a few months ? Can they afford the gap ?

Assume they dont need to draw down the principal for at least a few years, a combination of laddered GIC and Canadian blue chip div stock will be what I will do if I am in the same situation.

February 8, 2019
9:08 pm
promise
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January 28, 2019
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savemoresaveoften said
While getting some USD is NOT a bad way to diversify, I dont think its effective given the size of their portfolio. Keep in mind even if the USD funds end up buying US dividend stocks, it does not have dividend tax credit like Cad dividends. Unless they are spending a lot of USD cash every year, buying USD at ~1.32 is not exactly the best level (the range has been ~0.92-1.60 in the last 20 years). Usdcad inflation is more tied to consumer discretionary goods (golf clubs, electronics, etc) than basic staples like groceries in general.

Re getting a real estate for income purpose, is their plan to buy it outright or take out a mortgage ? Since they are retired, mortgage rate will be high and also what if they lose tenant for a few months ? Can they afford the gap ?

Assume they dont need to draw down the principal for at least a few years, a combination of laddered GIC and Canadian blue chip div stock will be what I will do if I am in the same situation.  

Thanks savemoresaveoften for your input.
They are hoping to use good chunk of there capital to buy the place and depending on the place cost they may or may not carry mortgage. Yes they can defintley afford the gap since one of them is planning to start to work full time making not as much as they used to make in there prime but somewhat ok wage.

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