Comments on: Sleepy Mini Portfolio Q3-2009 Update

By: Sleepy Mini Portfolio Q4-2009 Update | Canadian Capitalist

Sleepy Mini Portfolio Q4-2009 Update | Canadian Capitalist — Mon, 21 Dec 2009 04:42:16 +0000

[...] 21st, 2009 · No Comments Since our last update, the Sleepy Mini Portfolio, a simple, passive portfolio constructed with low-cost index mutual [...]

By: Mark in Nepean

Mark in Nepean — Sun, 20 Dec 2009 15:54:45 +0000

Good job CC! Simple, steady index investing will win the race.

By: Maury

Maury — Wed, 09 Sep 2009 18:12:21 +0000

sorry, for any confusion and I look forward to your comments. I noticed there are 11 e-funds
http://www.tdcanadatrust.com/mutualfunds/prices_EF.jsp

some i think are redundant in a way if it is the same fund but in US dollars? I don’t think i need to carry the same fund in USD or have the currency neutral version of the same fund as i believe from other posts stats suggest simply holding the CAD fund is preferred anyway.
So, in summary i believe i am just as to why the japanese, european, nasdaq, and dow jones e-funds are not included in the sleepy portfolio. Then also, depending on your response, if using the e-funds to totally make up one’s rrsp holdings, how would it be recommended to allocate funds across all e-funds?

thanks very much

By: Canadian Capitalist

Canadian Capitalist — Wed, 09 Sep 2009 17:08:05 +0000

@Maury: I’m not sure I understand your question.

By: Maury

Maury — Wed, 09 Sep 2009 15:33:40 +0000

Hi, i am just getting started with td e-funds. I am wondering why or if the other e-funds should be considered to part of my rrsp’s?
Can anyone let me know why the others are not included or if any others should if one is exclusively using e-funds to hold all of one’s rrsps?
thanks

By: Canadian Capitalist

Canadian Capitalist — Fri, 04 Sep 2009 14:21:15 +0000

@Matt: Oh, Derek is out there, apparently working on a comeback:

http://blog.canadianbusiness.com/derek-foster-working-on-a-comeback/

@mfd, @ghandy: I haven’t read up on value averaging, so I can’t comment knowledgeably on it. Maybe, I’ll pick up that Edleson book.

@Mark: I think we’d agreed that an option strategy still doesn’t sever risk and return. If I’m willing to settle for a lower return, I could reduce risk by boosting fixed income. I’m not convinced that options have to enter the picture.

@cs: Fair enough. In my own portfolios, which were quite large compared to additions since late summer of 2008, the values have recovered and far surpassed their previous peaks. Two reasons: frequent additions through the bear market and one rebalancing late last year helped the portfolio recover.

@Lina: I can’t comment on your specific financial situation. I’d recommend reading up on asset allocation to decide what’s best for you.

By: Lina

Lina — Fri, 04 Sep 2009 12:45:06 +0000

Hi, I’d like to open an ING Streetwise account, however, I’m not sure which to choose. I’m 37 and hubby is 46, so would it be better to choose the one that allocates 70% to Can. Bonds/30% distributed equally to Can. , U.S., and Intern. stocks. Or, should I choose the 40% Can. Bonds, and 60% distributed equally to Can., U.S., and Intern. stocks. This potfolio will be held for the long run of 10-15 yaers at least. Thanks.

By: cs

cs — Thu, 03 Sep 2009 23:56:53 +0000

I’m looking at your graph and had your portfolio been bigger it would have taken longer to get back to par. Since the addition of 1000$ was a large addition to your portfolio it helped boost you back into the green quicker as most of the gains have occurred recently. Had it been the case that you had say 100,000 portfolio to start in sept 07 and were dollar cost averaging 1000$ each quarter you would still be deep in the red. However, the gains seen recently with re-balancing of your bond’s to stocks would have been significant. I have a similar style of portfolio and am still seeing a lot of red myself but with healthy gains each month returning me to break even. Regardless, this is an excellent way to invest without putting too much time in it. I just wish there was a way to automatically withdraw that xxx$/month and have it allocated effectively to your portfolio of ETFs bearing in mind your percentages and transaction fees etc. without having to do anything.

By: mfd

mfd — Thu, 03 Sep 2009 14:14:08 +0000

@xenko – I wouldn’t consider DCAing with rebalancing the same as value average. Value averaging works on the premise of knowing exactly what the dollar value of your portfolio will at some point in the future and choosing a growth rateto reach taht value. Once you have that then you buy and sell at intermediate points so that your portfolio value maintains the growth rate that you choose to meet that dollar value in the future. Buying and selling has less to do with maintaining a stock to bond ratio and more to due with hitting those dollar values.

By: Four Pillars

Four Pillars — Thu, 03 Sep 2009 13:25:08 +0000

Mark, it’s called “asset allocation”. You should try it sometime – it’s far cheaper and easier than any option strategy.