Q: Knowing that portfolio allocations need to be very personal, but would 30% Canada, 45% US, and 25% international work as a general guideline for 60% equity portion of a new RRIF account?
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
5i Research Answer:
We think the first allocation looks about right for most investors, though we might lean towards less international (15% to 20%) with perhaps the difference split back to CAN/US evenly. While international markets are cheap, and SHOULD do better, we are not really seeing a lot of evidence yet. Plus, in a recession, global investors will likely flock to the US for safety. So we think there is time before going too big internationally. On bonds we would be comfortable with the set up indicated. GICs remain very attractive. CPD has finally started to perform as well, up 12.2% YTD.