Errata

Here are some changes that have cropped up since the book’s publication:

The iShares High Quality Canadian Bond Index has changed its ticker symbol from CAB to XQB (see the table on page 98 of the paperback). Also from the same table, I omitted VCN as one of the options for Canadian equities (it is closer to XIC than VCE is).

As foreshadowed in the text, TD Direct Investing (Waterhouse) has implemented its switch to parallel Canadian dollar and US dollar RRSP accounts, which slightly changes the use of Norbert’s gambit for cheaply exchanging currency. Here is a PDF with a revised version of that section.

In a footnote I provided a referral code for Questrade that would provide you with free trades. Given that most readers will be using free-to-trade ETFs there anyway, their new program providing cash bonuses for signing up is likely a better deal for you. The new referral code QPass 356624159378948.

The Federal government changed the TFSA contribution limits with the 2015 budget. People over the age of 18 in 2015 received $10,000 in contribution room. In 2016, the old system was put back in place, so you have $5,500 in new TFSA room for the year 2016, and this will increase with inflation in the future.

Vanguard has updated some of its index funds as of June, 2015. Of note is the international fund with the ticker VDU, which will now attempt to follow an index that includes a roughly 8% weighting to Canadian equities, excluding only the US market. This is, in my opinion, not a great change for Canadian investors, as it complicates asset allocation (albeit, not in a huge way — someone with a 33% weighting to VDU would now be ~2.6% overweight to Canada). The other options for international funds mentioned in the book have not changed as of yet. Because of this, XEF should be a better choice for international funds, or the new VIU replacement fund from Vanguard.

MoneySense has discontinued their directory of fee-only planners, I have created an alternative directory here.

In the book I suggested that contributing to your RRSP and deferring the deduction may be a good move if you were expecting to be in a higher tax bracket in the future. See this post for why that’s rarely actually good advice — if you’ve filled your TFSA room, you will likely prefer to either use your RRSP and take the deduction right away, or invest in a non-registered account until you’re actually in that higher tax bracket.

At the end of 2015, Questrade updated their interface. This major change now means that your statements and trading platform are in one place. I’ve updated the section of the book with the new step-by-step instructions — click here to download a PDF of that section.

For March 2016, the account fees at TD Direct Investing are changing. Rather than free non-registered and TFSA accounts, and a $25/yr charge for RRSP accounts under a certain size, the new account fee is $25/qtr ($100/yr) when all of your household accounts have less than $15,000 in them combined, and no fees when your household has more than $15,000 at TDDI. Moreover, these fees are waived if you have a systematic investment plan of $100/mo or more (i.e., if you’re automatically purchasing e-series funds every month). This is an improvement for people with small RRSPs looking to use e-series, and lets you use your spouse’s or parents’ account to get over the limit more quickly (if you live together), though for those who were starting out with smaller amounts in TFSAs this will force the use of automation. It also does away with the previous fee on RESP accounts that was unavoidable. Though the annual amount is higher, this new fee structure (with the easy way to avoid it entirely) should make TDDI an even more attractive choice over TDMF for e-series. I have also updated the section of the book on TD for the new interface (click here).

Some users have reported difficulty viewing the images in the Kindle version when using Amazon’s software readers (i.e., purchasing from Amazon to read on an iPhone or PC instead of on a Kindle device), and that the Kindle software is not enlarging the images. Here is a PDF of the figures and tables from the book that should help. Some images require context and can’t be posted separately.