Long time reader, first time poster. Thanks for your blog and all the useful information it contains. I discovered this site through your post on couchpotato portfolios (nice move!). To me, the fact that your website provide freely this much information is a key factor to change the world of personal savings / investing. It becomes more and more understandable to every one and I know that I owe you a lot, not only metaphorically!
Today I’ve decided to ask my silly question about tax efficiency portfolio allocation. I’ve read the post on how the tool works (multiple times) but there is still something I don’t get:
TFSA 1. IVAL 2k US 2. QVAL 10.6k US 3. BRK-B 7.4k US
RRSP 1. IVAL. 9k US 2. XEG.TO 7k5 3. CGL-C.TO 5k 4. XSB.TO 5k
- I find logical to see BRK-B in TFSA: since it does not pay dividends, there is no need to avoid the foreign withholding tax in RRSP.
- I would have expect to see QVAL in RRSP (still to avoid paying the foreign withholding tax)
- What is the reason the tool choose not to have XEG.TO / CGL-C.TO & XSB.TO in TFSA? Aren’t Canadian stocks / bonds supposed to be hold in TFSA?
Here’s the type of allocation I had in mind before checking the tool:
TFSA 1. XEG.TO 7k5 2. CGL-C.TO 5k 3. XSB.TO 5k 4. BRK-B 7.4k US
RRSP 1. IVAL. 11k US 2. QVAL 10.6k US
Thanks for answering my questions Julien