I'll preface here with the history that I have been an individual stocks Buy and Hold investor (buffet style stocks or so I think) for the last decade. Fortunately, I've avoided big mistakes but the truth is that I don't actually know if I've been able to "beat the market".
I am in the process of converting from individual stocks (B and H) to becoming an indexer. Any pitfalls with this proposed model that I am considering?
40% Canadian Large Cap (mostly banks)
25% S/P 500
25% Berkshire Hathaway
10% Bonds
I'm a 39 year old candian doc possibly within a few years of full FIRE (I'm thinking age 45 would be my latest even though I should be FI in a couple years). I am thinking overweight Canadian equities due to favourable tax treatment of dividends. I am also thinking of a large allocation to Berkshire Hathaway since foreign capital gains only (BRK does not pay dividends) would be preferential over US capital gains + dividends from other US large cap such as I will receive in the S/P 500 ( US dividends are considered foreign dividends here and taxed similar to interest/ordinary income).
I realize my AA appears quite aggressive but I am thinking along the lines of total return and tax minimization/efficiency.
Any alarm bells?
Thanks.
I am in the process of converting from individual stocks (B and H) to becoming an indexer. Any pitfalls with this proposed model that I am considering?
40% Canadian Large Cap (mostly banks)
25% S/P 500
25% Berkshire Hathaway
10% Bonds
I'm a 39 year old candian doc possibly within a few years of full FIRE (I'm thinking age 45 would be my latest even though I should be FI in a couple years). I am thinking overweight Canadian equities due to favourable tax treatment of dividends. I am also thinking of a large allocation to Berkshire Hathaway since foreign capital gains only (BRK does not pay dividends) would be preferential over US capital gains + dividends from other US large cap such as I will receive in the S/P 500 ( US dividends are considered foreign dividends here and taxed similar to interest/ordinary income).
I realize my AA appears quite aggressive but I am thinking along the lines of total return and tax minimization/efficiency.
Any alarm bells?
Thanks.
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