The four main building blocks of the Sleepy Portfolio are cash (5-10%), bonds (20-25%), equities (55-70%) and other (5-10%), which is a catchall phrase for REITs, Gold and Venture Capital etc.

For the cash portion of the portfolio, we need a T-bill or money market fund with the lowest expenses. The fund should also have low minimum requirements (less than $5000 according to our asset allocation). In an earlier post, I mentioned that the Altamira T-bill fund, which has a MER of 0.38%, is a good choice for the cash component of the portfolio. The recent elimination of foreign content rules in tax-deferred accounts, allows us to reach for yield by setting up a high-interest savings account for the cash portion. However, to keep things simple, we will invest the cash portion in the Altamira T-bill fund.

Jan 4, 2005: Buy Altamira T-Bill Fund 500@$10
Current Value: $5,017.00

Tomorrow, we will consider the bond portion of the portfolio.