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BMO S&P 500 Index ETF (ZSP)
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iShares S&P/TSX 60 Index ETF (XIU)
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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
Q: Thank you for your great service. I have read The Wealthy Barber and was wondering what your thoughts are on the 10% rule (i.e. investing 10% of your income) and if, as a 35 year old, dollar cost averaging into a mutual fund/etf is one of the best ways to save for my retirement? Could you recommend an etf that would be suitable for this investment strategy? Thank you.
5i Research Answer:
We would suggest perhaps a few, VIU, XIU and ZSP to get a mix of global, Canada and US exposure. Due to high fees, we would far prefer ETFs over mutual funds. Many brokers allow for commission free purchases of certain ETFs as well. As far as the 10% rule goes, we think it is a fabulous idea. The key is consistency, so that the investment money is 'gone' and one does not consider it as part of a spending plan. The other key is to maintain the 10% level even as income rises throughout one's career. Over a 20 year period, it is about as close as one can get to guaranteed investment success.