2019- 09 My Dream Portfolio

I am focusing on my dream portfolio more and more. It is not about adding but about streamlining.

I started this blog with way too many accounts. My finances were bleeping complicated. And I never intended for any of this to happen.

Financial complexity are like weeds in your garden. If you do not guard against them, they will creep in.

I am certain that I can keep things relatively simple by gunning for this structure.

Wrapped Accounts- Retirement Use

  1. CCPC:
    1. VGRO- 80/20 AA ETF
    2. ZDB- discount bond ETF
  2. RRSP:
    1. VAB- intermediate bond ETF

Unwrapped Accounts

  1. Personal Taxable:
    1. VDY- Canadian High Dividend ETF
    2. HISA for contingencies
  2. TFSA:
    1. VGRO- 80/20 AA ETF
    2. Use for estate planning

And that’s all I really need.

My retirement account will have an overall AA of about 60/40 when fully invested. While my estate planning account will be 80/20 AA since it is being invested with the kids in mind.

My Son’s Accounts

  1. TFSA- VGRO (80/20)
  2. RRSP- VGRO (80/20)
  3. Taxable- VEQT (100%)

General Plan

  1. Dividend reinvestment plan in all tax sheltered accounts.
  2. Avoid dividend reinvestment plans in taxable accounts.

I am keeping this very simple because I recognize the inherent market risk.

Risk mitigation will not come from only my paper investments. It will be about the whole picture.

First of all, we plan to keep working. So I suppose we are still in the accumulation phase. Okay I will come clean. I have not really worked for almost a decade. But if my husband did not earn, damn right I’d get my butt out there and earn it.

My husband and I are a team. We have long decided that either one of us can earn money. We never cared who did it.

There is a reason Warren Buffett continued to draw his 100K salary. I heard he even takes his full social security. Good man.

The reason he is able to withstand these 50% drawdowns is due to the fact that he needs very little of it. His living expenses could likely be taken care of by his salary alone. Plus he is a billionaire.

I saw an interview where Charlie Munger said he could handle a 90% drawdown. Holy crap. But it puts it into perspective how these guys look at the markets. It truly is a game for them.

But I am ‘’tis an average investor. Risk mitigation will not come from my stock portfolio.

I plan to keep working and continue with our modest spending.

That has always worked.

No More Networth Reports

We recently went out for lunch with some friends. Our friends started to talk about personal finance blogs. One of the guys started chatting about my blog bud Dr. Networth’s site. This peaked my husband’s interest. Oh no!

So I best get these networth reports off the site. It will be okay if my husband finds my site. But he might recognize our numbers….dang it.

Oh well. It was a tad fun while it lasted.

Rather I will continue documenting my portfolio building. I am loving the passive income we are starting to generate. I admit passive income is something that I have a bias towards.

I can see that over time I won’t focus on the portfolio totals. I will focus on the income it generates instead.

That is what I want my kids to learn. I want them to focus on the shares they own and what that means for them.

Simplicity Quest

I tried to simplify my accounts by switching them all to MD. It seems they don’t want my business.

My advisor tells me that they will “grandfather” my accounts. But any new accounts will need “approval”.

I think they are moving to more AUM portfolios.

I treat my MD accounts like discount brokerages. I do not pay any extra fees. It’s no wonder they don’t want my business.

Thus I opened my first personal taxable account with Questrade instead. It was so easy. So thanks MD for making the decision easy for me.

Like, whatever eh?!

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