Daniel Solin recommends in his book, The Smartest Investment Book You’ll Ever Read (review), that investors with less than $1 million should implement one of the following four portfolios without relying on the advice of any broker or investment advisor:
- Low risk: 2% XIC, 10% XSP, 8% XIN, 80% XBB.
- Medium-low risk: 4% XIC, 20% XSP, 16% XIN, 60% XBB.
- Medium-high risk: 6% XIC, 30% XSP, 24% XIN, 40% XBB.
- High risk: 8% XIC, 40% XSP, 32% XIN, 20% XBB.
For those who are not familiar, the symbols represent exchange-traded funds from iShares that can be purchased on the TSX through a discount broker. I would substitute VTI for XSP and EFA for XIN but these “lazy” portfolios are a good starting point for smart investors.