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  • Affaires de PiassesOPM
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    1 year ago

    10% managed portfolio (Wealthsimple)

    Depending on your risk level, it should be equivalent to 50% VEQT-50% CASH, but with more fees. IMO, you’re better off with CASH/VEQT, as I hate WS habit of tinkering every few months with their managed portfolios in order to justify their higher fees.

    10% private credit

    One question: why? What are you trying to achieve? The fees are quite high (asset management fee of 1.25% + Wealthsimple’s standard managed account fees + a 15% performance fee on returns over 5%), and the results are completely unproven at the moment.

    is there a more efficient allocation?

    There is indeed a more efficient allocation: basically, you’re better off keeping your equities in registered accounts, and your CASH in NREG, but the math get quite complicated quickly. Justin Bender has had a few articles on the topic, for example here and Ben Felix has a great video on this topic.

    • Victor Villas
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      1 year ago

      IMO, you’re better off with CASH/VEQT

      Sounds plausible, thank you for your input!

      One question: why? What are you trying to achieve?

      An experiment. I believe in the power of index funds but I also believe that we’re living weird times and I’m curious to see if they can deliver on the promise.

      There is indeed a more efficient allocation: basically, you’re better off keeping your equities in registered accounts, and your CASH in NREG, but the math get quite complicated quickly. Justin Bender has had a few articles on the topic, for example here and Ben Felix has a great video on this topic.

      Amazing, that’s what I was looking for. Thank you!