# New Portfolio-Retired Parents



## showmethemoney45 (Feb 27, 2015)

Hi again,
To further my previous post on my parents retiring I'm wondering if anyone would like to share what they would set up as a portfolio? I'm thinking of using iTrade through Scotiabank. Balance of around 250k transferred from elsewhere. I think they would be interested in a broad index approach. Something nice and safe and easy to understand. I currently have a couch potato strategy going with questrade but I think scotia doesn't sell the exact same products/funds.

Thanks for the opinions!!


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## Spudd (Oct 11, 2011)

I think Scotia should sell the exact same products/funds if you're using iTrade.


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## dubmac (Jan 9, 2011)

There was a thread that I started a few weeks back on DFN.
http://canadianmoneyforum.com/showt...ssible-for-DFN-to-earn-10-yield?highlight=DFN. One poster is a retired gentleman who draws down on DFN-A monthly. I suggest that you read through the thread and see if anything piques your interest, but, as usual, caveat emptor.


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## avrex (Nov 14, 2010)

Congratulations!
It sounds like you have started the process to break up with your high-fee IG financial advisor.

For the indexing approach, I've always liked the low-fee portfolio of the Canadian Couch Potato ETF Model.

Your parents are in great shape because they will receive the *majority* of their retirement income from their safe guaranteed DB pension plans. 
Therefore, you 'could' be more aggressive with this smaller ETF portfolio.... 

However, since your opening post stipulates that you also want to be conservative with this portion of their portfolio, then you could go with the following ETF makeup:

*55% Fixed Income - * Vanguard Canadian Aggregate Bond Index ETF (VAB) - MER 0.19%
*15% Canadian Equity - * Vanguard FTSE Canada All Cap Index ETF (VCN) - MER 0.11%
*30% International Equity - * Vanguard FTSE All-World ex Canada Index ETF (VXC) - MER 0.27%

You can buy all of these ETFs through your Scotia iTrade account (or at any discount broker).


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## agent99 (Sep 11, 2013)

avrex said:


> Congratulations!
> It sounds like you have started the process to break up with your high-fee IG financial advisor.
> 
> For the indexing approach, I've always liked the low-fee portfolio of the Canadian Couch Potato ETF Model.
> ...


I checked, and it seems that VXC is not currency hedged. It mainly holds 4 US ETFs, three of which hold foreign stocks. At 30% of portfolio, wouldn't that be a significant risk in that it exposes holder to both US$->foreign and C$->US$ currency fluctuations?


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## showmethemoney45 (Feb 27, 2015)

agent99 said:


> I checked, and it seems that VXC is not currency hedged. It mainly holds 4 US ETFs, three of which hold foreign stocks. At 30% of portfolio, wouldn't that be a significant risk in that it exposes holder to both US$->foreign and C$->US$ currency fluctuations?


Yes, I definitely think something hedged (ie: safer) would be better


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