@crusader at the risk of being contrarian to a lot of people on this website
Have you checked out
https://www.financialwisdomforum.org ?
and their wiki
Bogleheads Canadian  will give you the 80% solution that you may be looking for
Investing, Finance and Economics 2021 Study Group

 Posts: 629
 Joined: Sat May 21, 2011 12:15 am
Re: Investing, Finance and Economics 2021 Study Group
@Crusader
Ok I think I understand where you are going with this. I'm not familiar with Canadian tax laws so I can't help you on that front. Any tax consideration question like yours is actually quite difficult to answer because it requires making assumptions and predictions about the future. I'll echo that Bogleheads Canadian is probably a good place to start.
However, I would caution that to me it sounds like you're focused on the tactics of "doing things right", when in fact the overall strategy is much more important: "doing the right things". The strategies vs tactics dynamic is covered in the ERE book, but I guess what I'm trying to say is that any potential gains from optimizing your current situation pale in comparison to the potential losses from not understanding your larger investment strategy and portfolio construction. To give a more specific example, you may save money on taxes and fees in the short term, but that's not going to help you much if your entire portfolio is tanking at the same time because in a low interest rate environment, stocks and bonds are actually highly correlated.
In other words, as Jacob points out in the original curriculum blog post, you might be much better off just doing nothing with your portfolio while you continue to learn rather than making a bunch of decisions now that down the line you may regret.
Ok I think I understand where you are going with this. I'm not familiar with Canadian tax laws so I can't help you on that front. Any tax consideration question like yours is actually quite difficult to answer because it requires making assumptions and predictions about the future. I'll echo that Bogleheads Canadian is probably a good place to start.
However, I would caution that to me it sounds like you're focused on the tactics of "doing things right", when in fact the overall strategy is much more important: "doing the right things". The strategies vs tactics dynamic is covered in the ERE book, but I guess what I'm trying to say is that any potential gains from optimizing your current situation pale in comparison to the potential losses from not understanding your larger investment strategy and portfolio construction. To give a more specific example, you may save money on taxes and fees in the short term, but that's not going to help you much if your entire portfolio is tanking at the same time because in a low interest rate environment, stocks and bonds are actually highly correlated.
In other words, as Jacob points out in the original curriculum blog post, you might be much better off just doing nothing with your portfolio while you continue to learn rather than making a bunch of decisions now that down the line you may regret.
Re: Investing, Finance and Economics 2021 Study Group
Bogleheads Canadian and https://www.financialwisdomforum.org
This looks great, thanks @Quazwer and @white belt, will check it out (haven't heard of it before).
This looks great, thanks @Quazwer and @white belt, will check it out (haven't heard of it before).
 Alphaville
 Posts: 3421
 Joined: Thu Oct 03, 2019 10:50 am
 Location: Quarantined
Re: Investing, Finance and Economics 2021 Study Group
you guys might wanna add mmt to the curriculum
https://60secondinvestor.com/news/them ... onearth/
https://60secondinvestor.com/news/them ... onearth/
Re: Investing, Finance and Economics 2021 Study Group
Below are better and more useful books for beginning (or even experienced) investors. The below two books cover all the topics needed to create an appropriate portfolio for any investor with AUM under $5 million. Academic textbooks will expose one to theories and jargon used in a theoretical setting, but reading below books will create the knowledge most investors need to make wise investment decisions. I'd also suggest buying a TI BAII financial calculator.
Random Walk Down Wall Street by Burton Malkiel (1973 and updated)
Barron's Guide to Making Investment Decisions (1999)
Random Walk Down Wall Street by Burton Malkiel (1973 and updated)
Barron's Guide to Making Investment Decisions (1999)
Re: Investing, Finance and Economics 2021 Study Group
I'm reading Investments by Bodie et al., soon halfway through, and so far I can say the book is well written and very accessible. It often sweeps technicalities under the rug but points you to more detailed treatments, and explains the gist very well. I highly recommend it, it's been illuminating for me personally. I now view some popular views, like indexing, in a new light.

 Posts: 166
 Joined: Fri Feb 01, 2019 8:40 pm
Re: Investing, Finance and Economics 2021 Study Group
@biaggio  Nice! I recently started reading Bodie. Would you mind elaborating on the insights you had into indexing and other investing methods so far by reading Bodie? I'm curious what's ahead.
Re: Investing, Finance and Economics 2021 Study Group
Specifically for indexing:
Ch's 6 and 7 are concerned with building portfolios with highest return per unit of risk where we learn that optimal risky portfolios lie on the efficient frontier (basically "northwestern part" of the convex hull of all possible portfolios in the (risk, return)plane). If portfolio P is not on the frontier then i) there is another portfolio with the same risk and higher return and ii) there is another portfolio with the same return and lower risk; so it's never rational to hold P. Under certain utility function Ua way to model investor risk aversionwhich assigns utility to portfolio P, every optimal portfolio (P which maximizes U(P)) is a combination of the optimal risky portfolio P* and the riskfree portfolio F (e.g. T bills). Changing utility changes weights (what fraction is put to F and P*) but not the risky portfolio itself.
In Ch 8 index models give us computationally efficient approximation to models above and introduce the familiar security pricing model r_i = a_i + b_i * r_market + e_i for security i. Instead of looking at full covariance matrix we say that risk is always factored into market risk and firm specific risk (number of input parameters goes from quadratic down to linear). I had to recall some stuff from statistics here. I also enjoyed reading on alpha transport at the end (it was new to me).
Next in Ch 9 CAPM tells us that (under some quite strong assumptions) the optimal risky portfolio is the passive valueweighted total stock market portfolio (passive strategy is efficient). We also derive the famous expected returnbeta relationship. Ideas such as market price of risk, use of CAPM for capital budgeting decisions (CAPM tells us required IRR) and setting rates in regulated businesses such as utilities were also interesting.
Then in Ch 10 APT we arrive at the same expected returnbeta from more elegant and plausible assumptions (security returns can be described by factor models; there are enough securities to diversify away specific risk; markets don't allow arbitrage opportunitiesonly need a small group of active investors which will capitalize on them until they disappear).
And then in Ch 1113 it basically continues with efficient market hypothesis. This wasn't so new to me although the discussions were still an interesting read. If I have time and energy I want to reread chapter on attempts to validate EMH (a chance to refresh my statistics).
There's more but these are some of the highlights.
Ch's 6 and 7 are concerned with building portfolios with highest return per unit of risk where we learn that optimal risky portfolios lie on the efficient frontier (basically "northwestern part" of the convex hull of all possible portfolios in the (risk, return)plane). If portfolio P is not on the frontier then i) there is another portfolio with the same risk and higher return and ii) there is another portfolio with the same return and lower risk; so it's never rational to hold P. Under certain utility function Ua way to model investor risk aversionwhich assigns utility to portfolio P, every optimal portfolio (P which maximizes U(P)) is a combination of the optimal risky portfolio P* and the riskfree portfolio F (e.g. T bills). Changing utility changes weights (what fraction is put to F and P*) but not the risky portfolio itself.
In Ch 8 index models give us computationally efficient approximation to models above and introduce the familiar security pricing model r_i = a_i + b_i * r_market + e_i for security i. Instead of looking at full covariance matrix we say that risk is always factored into market risk and firm specific risk (number of input parameters goes from quadratic down to linear). I had to recall some stuff from statistics here. I also enjoyed reading on alpha transport at the end (it was new to me).
Next in Ch 9 CAPM tells us that (under some quite strong assumptions) the optimal risky portfolio is the passive valueweighted total stock market portfolio (passive strategy is efficient). We also derive the famous expected returnbeta relationship. Ideas such as market price of risk, use of CAPM for capital budgeting decisions (CAPM tells us required IRR) and setting rates in regulated businesses such as utilities were also interesting.
Then in Ch 10 APT we arrive at the same expected returnbeta from more elegant and plausible assumptions (security returns can be described by factor models; there are enough securities to diversify away specific risk; markets don't allow arbitrage opportunitiesonly need a small group of active investors which will capitalize on them until they disappear).
And then in Ch 1113 it basically continues with efficient market hypothesis. This wasn't so new to me although the discussions were still an interesting read. If I have time and energy I want to reread chapter on attempts to validate EMH (a chance to refresh my statistics).
There's more but these are some of the highlights.