I've finally done it. All the hemming and hawing is done and I've come up with a plan for my retirement portfolio. It stands as follows:
25% - Canadian Bond Index Fund
10% - US Stock Index Fund
20% - International Stock Index Fund
45% - Canadian Stock Index Fund
Which means I have 30% of my portfolio in foreign markets, 75% in Stocks and 25% in Bonds. I am planning on keeping this ratio until at least halfway to retirement at which point I will start slowly moving towards a higher percentage of fixed income. All of the Funds that I chose follow well known and established Indexes.
I chose this set up because:
- It will be 10+ years before I need to touch this money (perhaps as long as 40 years depending on how long I feel like working)
- I have a moderate to high risk tolerance, which means that I won't sell if my portfolio suddenly drops
- I have no desire to try and beat the market, I would prefer to match it
- If the economy in one area of the world plummets I have investments in other parts of the world*
*Of course all the markets in the world could plummet at the same time, the earth could also be hit by a meteorite, the odds though are fairly low.
Have a question? I'd love to hear it!
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