2020-02 Portfolio Update

“Don’t tell me what you think, tell me what you have in your portfolio.”

― Nassim Nicholas Taleb, Skin in the Game: Hidden Asymmetries in Daily Life

CCPC (Corporate) Portfolio

ETF/ Stock

Shares Added

BRK.B

0

VGRO

28,501

XAW

0

XIC

0

ZDB

0

GIC

4 Matured

  • Brk.B: Berkshire Hathaway Class B
  • VGRO: Vanguard Growth ETF Portfolio (80/20)
  • XAW: iShares Core MSCI All Country World ex Canada Index ETF
  • XIC: iShares Core S&P/TSX Capped Composite Index ETF
  • ZDB: BMO Discount Bond Index ETF
  • GIC: Guaranteed Investment Certificate

CCPC Plan

  • Keep Berkshire as a legacy stock until we fully enter part time work or retire.
  • XAW & XIC:
    • Plan to tax loss sell when possible.
    • Canadian Couch Potato portfolio.

Non- Registered (Taxable) Portfolio

ETF

Shares Added

VDY

2

  • VDY: Vanguard Canadian High Dividend Yield Index ETF

Non- Reg Plan

  • Buy VDY to allow some tax efficient income with eligible dividends from Canadian companies.
  • I mainly have this because my husband wants it.
  • I need to send the monthly cash dividends to my bank account or else I will buy 2 shares again. This is mildly obsessive and idiotic.
  • Wealthsimple Cash accounts offer 2.4% rates. I might not even need a taxable investment account. I will finalize my decision on this during the year.

RRSP (Tax Deferred) Portfolio

ETF

Shares Added

VAB

1,757

GIC

2 Matured

  • VAB: Vanguard Canadian Aggregate Bond Index ETF

RRSP Plan

  • Whenever a GIC matures, I buy VAB. I still have 32 GICs. Good grief.
  • VAB is on a dividend reinvestment plan. So easy peasy.
  • Use RRSP to hold bonds. This is as complicated as my asset location strategy gets.

TFSA (Tax Free) Portfolio

ETF

Shares Added

VGRO

0

  • VGRO: Vanguard Growth ETF Portfolio (80/20)
  • These are the easiest accounts. I fill them up in January and set them on a DRIP.

My Whole Portfolio

I treat all the accounts as one portfolio.

Here is the portfolio broken down by account into percentages. I find it more useful to get an overall view of it.

This is just the way I am doing it. I have different goals, traits and triggers than others.

Taking anyone else’s plan off the internet must be one of the silliest things one can do to their financial health.

Everyone has to do the heavy lifting to regularly define what you want your portfolio to do to meet your goals. Thinking and making decisions is hard. I get that.

Account

Ticker

Asset

Portfolio %

Corporate

BRK.B

Berkshire Hathaway

4.7

Corporate

VGRO

80/20 Asset Allocation ETF

22.8

Corporate

XAW

All World ex-Canada

6.3

Corporate

XIC

All Canada Index

2.8

Corporate

ZDB

Discount Bond

9.3

RRSP1

VAB

Aggregate Bond

1.8

RRSP1

VGRO

80/20 Asset Allocation ETF

1.7

RRSP2

VAB

Aggregate Bond

4.0

TFSA1

VGRO

80/20 Asset Allocation ETF

1.4

TFSA2

VGRO

80/20 Asset Allocation ETF

1.4

Taxable

VDY

Canadian High Dividend

0.6

GIC/ Cash

43.3

Total

100%

Networth

Investable Assets

66%

Personal Residence

26%

Other

8%

Investable Assets – 67% of Networth

  1. Real Estate (unleveraged) -9%
    1. Commercial unit
  2. Paper Investments – 91%
    1. Equities – 36%
    2. Fixed Income – 64%

What a ride the past week has been. If you can not stomach the recent downturn then paper investments might not work well for you. I am still buying so the volatility has been fine.

But when I review these price swings I realize that equities are not for the faint of heart. One has to be clear about why they are even in the equities market. Growth is good but growth has a price.

I use the market to hopefully maintain pace with inflation. So my view is for the long term. Plus this reaffirms that one needs a strategy to deal with these swings in one’s networth. I plan to focus on cash distributions and other forms of passive income.

There are risks with investing. There are risks with not investing. I find reviewing my numbers methodically each month helps.

It has highlighted my need to streamline my accounts somewhat. With the advent of everything being online, I can see the ease of forgetting about an account.

The week is not over yet. Let’s see if I add more VGRO over the next two days.

Addendum Feb 27, 2020 – Yeah, I bought more VGRO. I am definitely averaging into a lower price. No one ever promised that this would be pleasant. The Toronto Stock Exchange halted trades since the afternoon due to some order entry issue. Oh well, it’s always something isn’t it?

Addendum Feb 28, 2020 – The week is over for the market. I am buying in at 2018 prices for VGRO. Do I time the market? Sort of. I have been buying regularly. I just buy more when it goes on sale. This is the path I have chosen for better or for worse.

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