It’s been a while since the last new article appeared on the Canadian Couch Potato blog, and over two years since the last podcast. So I’m pleased to share the reason for the long silence: I’ve been busy on a new book called Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs.
The official publication date is November 1, but the book is already available for pre-order on Amazon and Indigo, and will soon be on shelves at better bookstores across Canada.
I stopped recording the podcast in the summer of 2019 because I needed to take a break and think about how I could make my work more useful in a world of information overload. I didn’t want to just crank out content on a deadline: I wanted to create something that would have a lasting impact on readers and listeners. What was needed, I recognized, was a step-by-step guide to designing, building, and maintaining a portfolio of ETFs over the long-term.
The new book is something of a reboot in its own right. When I was a columnist and editor at MoneySense magazine, I wrote a modest book called the MoneySense Guide to the Perfect Portfolio, which laid out a plan for building a Couch Potato portfolio with ETFs and index mutual funds. That book sold out three editions, but it has been out of print since 2013. I still get emails from readers looking for copies, but there are none, and even if there were, the book is profoundly out of date now. The marketplace has changed dramatically: online brokerages are better and cheaper, excellent new ETFs have appeared, and roboadvisors have become a viable option for DIY investors who want a more hands-off approach.
As 2020 dawned, I had a clear idea of what my next project would be. Now I just needed to find the time to do it. Then along came the COVID pandemic, which meant a lot more time for all of us.
All of these roads led me to write Reboot Your Portfolio. The book is a complete guide to becoming a do-it-yourself investor using low-cost index ETFs. It draws heavily from the writing I’ve done over the years, since much of the advice hasn’t changed. But everything has been thoroughly updated, and large sections are brand new, reflecting the changes in the investing landscape. Moreover, my own approach has evolved during the last decade as I made the transition from financial journalist to portfolio manager: the more closely you work with human beings, the more you realize that simplicity always trumps complexity.
If you’re a hardcore DIY investor who’s been using ETFs for years, and you’re looking for advice about optimizing your portfolio to shave a few basis points in costs or taxes, you won’t find that in the book. The same goes if you’re only interested in model portfolios or specific ETF recommendations.
My goal with the book is to help you get away from the idea that successful investing is about choosing products and obsessing over tiny tweaks that will take you from an A to an A+. As I’ve worked with hundreds of investors over the years, I’ve come to understand that I can help more people just by getting them to an A. The small details don’t matter very much after that—and indeed, stressing over them can easily sidetrack you from what’s really important.
I hope you enjoy the book, and that it will help you get started on a path to investing success.
Hi Dan,
I use VGRO for my large corp account. I am broaching my small business deduction soon.
As a professional, it might mean that the government is telling me to slow down.
That’s what I plan to do rather than buying permanent life insurance which is all my accountant keeps telling me to do.
I like holding VGRO. I wondered if I should have bought VEQT and GICS.
But that would still kick off a lot of passive income. And it would involve me having to rebalance.
Anyhow regardless of SBD tax issues, I am grateful to be able to use VGRO just for the simplicity factor alone.
Hi Dan, loved the book, read it in 2 days,in the process of re-reading and taking notes…but looking for your recommendations as to my specific situation…retiring in November 2023, have company pension that will pay me approx. 700/wk after taxes, have 20000 in TFSA, just inherited 40000 from dads passing last year…want money to last until at least I am 85, will be 52 when I retire…thnx so much, keep up the good work, I don’t think u realize how many ppl u are helping
@Mark: Thanks for the comment, and glad you enjoyed the book! It sounds you would benefit from a financial plan to make sure your expectations are realistic. There are many good planners who work on a fee-for-service basis, and these are are a great choice for DIY investors approaching retirement. Good luck!
Hi,
I enjoyed the book but as I am at the latter end of my saving life I am looking for a reference for what to do as the goal becomes locking in savings, minimizing taxes and generating income.
For example you mention you invest your clients money in GIC’s do you have a reference for what to look for there.
Stan
Okay, I have to say that I am MORE than happy with this book. The first 30-40% of it is simply talking about the non-technical things regarding investing: Equities-vs-Bonds, personal risk tolerances, investment timelines, etc… While the conclusion of the book is a simple reminder that the best plan is the ones you follow.
About the only thing that I didn’t see discussed was explaining the difference between investing and speculation. Many folks don’t understand the difference, but they are worlds apart.
Even if you have absolutely no interest in ETFs, this book is well worth the read. I finished it in about two days; it’s approx 200p)
VERDICT: HIGHLY RECOMMENDED (whether you are a noobie investor or a seasoned DIY-pro).
Hi Dan,
I am having a bit of trouble understanding index funding/etfs when it comes to amount and frequency. Lets say I bought ZGRO, do I just keep adding to it each month or “should” I have more than one etf/index fund?
thanks!
@mackenize: Assuming that ZGRO (which is 20% bonds and 80% stocks) is an appropriate portfolio for your situation, then it is designed to be all you need. There would be no benefit to adding more holdings to the portfolio. Just keep saving!
I initially started ETF investing prior to their being products that do the rebalancing for you. I wonder – do I sell my current ETFS and reinvest in a single product, as I prefer the ease, or do I just start investing all new money into the new product?
Good book
@Tasha: Unless you would face capital gains taxes after selling your current holdings, it is probably worth moving the whole portfolio to your chosen asset allocation fund. Otherwise you will still need to rebalance the other holdings: you’re really not making your life easier unless you switch everything.