Please read the disclaimer on this website. I am not a financial anything and the way we have our portfolio structured, will not be good for everyone so please consult a professional. I am very comfortable with a 30% + stock market decline and anytime we have a 15% decline I am a buyer and get more aggressive the bigger the decline. My comfort level will change as I get closer to retirement but that’s how it is for now.
We have a few different accounts in our RRSP but we follow the same principal. We use the Canadian couch potato portfolio ish. The reason I have ish is because I have added a few ETF to the portfolio. I have about 2% of our total RRSP in MNT.to which is a gold receipt (ETR) from the Canadian Mint and PSA.to which is a high interest savings account. It earns 1% and I use it as a place to hold cash before I deploy it. I use the ishares core ETF but BMO or Vanguard are all good choices. Another thing I do a little different is, I don’t re-balance the portfolio. I use the income that it generates to purchase the fund that has been down the most money. If there was a big downturn or if it became too out of balance I would re-balance. The couch potato portfolio is easy and efficient, once it’s set up you only have to look at it once a year or so to re-balance. If you want to check out the Canadian couch potatoes portfolio, look at the model portfolio and the recommended funds as there is a lot of good information there.
check it out here. Canadian couch potato portfolio
For our TFSA I am a little more active. I want this as our fun holiday money when I retire so I am trying to create monthly income with the idea I will never touch the principal. I mainly use BMO covered call ETF. Which selling covered calls is great for extra yield when the market is sideways to down, but if that changes so will I. The MER(management expense ratio) are a little higher on these ETF most are around .65. I also have a few other ETF in the portfolio preferred shares/healthcare/and REITS. Some of the ETF I use as of August 2017 are the following.
ZWC.to covered call Canadian dividend
ZWE.to covered call Europe dividend
ZWU.to covered call utilities
ZWB.to covered call Canadian bank
ZWH.to covered call us high yield dividend
HHL.to healthcare leader income
ZRE.to equal weight REIT
HPR.to active preferred share
ZPU.to us put write
These are not endorsements. This is what I have in our TFSA at the moment, and it will continue to change over time as I do trade these around. These ETF are on the Canadian Toronto Stock Exchange.
I am also looking into opening up another brokerage account with a different company so I can add some penny stocks and dividend stocks in a non-registered account, but that will be for extra money. I have not figured out what the best deals or product is. That will be another post.