what should old folks invest in
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Thread: what should old folks invest in

  1. #1
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    what should old folks invest in

    I have to start a rrif, so next year money will have to come out of taxprotected.
    Bloomberg says stocks only go up now cos of buybacks that make the bosses bonuses even bigger. We wont see any growth in my lifetime, just like japan for the last decades.
    The essential retirement guide is worth a read.
    The money is for when I am older a dodderier!
    So what gives a good return nowadays.
    Balanced portfolio does not make sense now
    Thanks all


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    Oops forgot to click send an email when somebody replies.
    Now I have

  3. #3
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    We've discussed strip bonds, GIC's, and REITs with you in other threads.
    Now you are asking, 'what gives a good return these days'.

    To help this thread out a bit:

    What is your RRSP/RRIF invested in now, and why don't you want to leave it invested as it is now and just make the annual minimum withdrawl from it?

    How dependent are you on the income from the RRIF? Is this income you don't really need?

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    Senior Member pwm's Avatar
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    Same question: Why do you feel you need to change your investment strategy because your RRSP is changing to a RRIF? I switched mine two years ago and the contents remained the same.

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    Quote Originally Posted by pwm View Post
    Same question: Why do you feel you need to change your investment strategy because your RRSP is changing to a RRIF? I switched mine two years ago and the contents remained the same.
    I am looking for something better than 2.5% 5yr GICs

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    Quote Originally Posted by anon125 View Post
    I am looking for something better than 2.5% 5yr GICs
    So what are you invested in now with your RRSP? Why change it (as already asked by others)?

    Without knowing what your asseet allocation now is, what I would do is slowly get more income focused, e.g. high dividend equity ETFs, REITs, bonds, and GICs. It is important to have some FI in your portfolio in the form of a short term bond ladder or 5 year GIC ladder, just so you don't have to draw on equity capital in years in which it has gone down a bunch, e.g. 10-20%.

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    Senior Member zylon's Avatar
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    tables and chart from http://portfoliodb.theglobeandmail.com/

    I still like balanced funds, although my most recent purchase was a Bond Fund.

    A short list from the many bond funds available; sorted by MER%




    Fund with lowest MER also has highest 15-year return.




    PH&N Total Return Bond Fund handily beat the 5% Fixed Rate Index over 15 years.


    image hosting over 5mb

  9. #8
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    Quote Originally Posted by anon125 View Post
    I am looking for something better than 2.5% 5yr GICs
    GIC rates are some of the highest fixed income, low risk returns out there. We live in a low interest rate environment due to the central bank policies... that means no-risk investments have low returns.

    Quote Originally Posted by AltaRed View Post
    It is important to have some FI in your portfolio in the form of a short term bond ladder or 5 year GIC ladder
    Re-iterating this because it's a very important point. Not only is it important to have fixed income, but you need to have some of these short duration things like AltaRed mentions.

    You can also of course hold a more general bond fund, like iShares XBB, which had 5.62% annual return since inception in 2000, or the ones that zylon listed. However there's uncertainty about what these bond funds may return going forward... they do have some risk, and they may not have anywhere near those past gains and could actually decline in the short term.

    You need some GICs and short term bonds so that you don't have to liquidate other investments that may decline in short term. I believe this is why Buffett's estate will be composed of purely a stock index plus short term bonds.

    Best simple answer to all of this is a balanced fund, along with a 5 year GIC ladder.
    Last edited by james4beach; 2016-05-15 at 01:36 PM.

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    Zylon has some great examples of bond funds. I though believe there is risk in longer term bond funds and would more likely pick Mawer balanced funds as the 'goldilocks' scenario. Imagine that, all or most of the portfolio in one Mawer balanced fund.

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    Quote Originally Posted by AltaRed View Post
    Imagine that, all or most of the portfolio in one Mawer balanced fund.
    Yes I agree it's a good choice overall. I like balanced funds as a one-size-fits-all solution, and Mawer Balanced and TD Monthly Income are the best ones I know.


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