Investing

Sleepy Mini Portfolio Q1-2014 Update

March 25, 2014

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The Sleepy Mini Portfolio was launched in 2007 to demonstrate how a mechanical investment program can slowly but surely build wealth over the long term. All you need to implement such an investment program are (1) some initial effort in mapping out an asset allocation strategy (2) a calculator to divvy up your regular contributions and (3) discipline to stick to the strategy through all kinds of market conditions. I have personally implemented this portfolio for our kids’ RESPs and if you want a more sophisticated portfolio you may to check out the Sleepy ETF Portfolio that adds a few more asset classes.

The portfolio kicked off with an initial infusion of $1,000 with a target allocation of 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. Another $1,000 was added to the portfolio every quarter since then for a total investment of $26,000 so far. Here’s how the portfolio looks as of March 25, 2014:

TDB909 – Canadian Bonds – $7,213 (19.4%)
TDB900 – Canadian Equities – $7,526 (20.3%)
TDB902 – US Equities – $11,472 (30.9%)
TDB911 – International Equities – $10,924 (29.4%)
Market value – $37,136
Total Invested – $26,000

I’m going to add another $1,000 to the portfolio and rebalance it to the original target allocation using this rebalancing spreadsheet. Here are the results:

Transactions

TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $414.
TDB900 – TD Canadian Index (e-Series) – Buy units for $101.
TDB911 – TD International Index (e-Series) – Buy units for $485.

Notice that due to strong recent returns from the US market, we are not adding new money this time around.

The following chart shows the performance of the Sleepy Mini Portfolio for the past year.

sleepy_mini_portfolio_q1_2014

The portfolio has returned an annualized 10.45 percent since inception. A word of caution: don’t let the recent returns fool you. Long-term returns from this portfolio can be expected to be much more modest (in the low- to mid- single digits).

How to Painlessly Transfer your Account from one Broker to Another

February 5, 2014

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If you have just opened a trading account with a new discount broker or you have accounts in different places and want to consolidate, you’ll need to transfer your holdings between brokers. In this post, I have put together a detailed checklist on what you have to do to make this process as painless as possible.

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Sleepy Mini Portfolio Q4-2013 Update

January 28, 2014

6 comments

The Sleepy Mini Portfolio was launched in September 2007 to demonstrate how a super simple, regular investment program can slowly but surely build wealth over a period of time. All you need to implement such an investment program are (1) some initial effort in mapping out an asset allocation strategy (2) a calculator to divvy up your regular contributions and (3) discipline to stick to the strategy through all kinds of market conditions. I have personally implemented this portfolio for our kids’ RESPs (as have others) and if you want a more sophisticated portfolio you may to check out the Sleepy ETF Portfolio.

Read More ›