At the beginning of the decade, if you had taken the advice of a lot of financial reporters and developed a financial plan based on a diversified portfolio with a carefully considered allocation of your investments, you might have developed a plan something like this. (This is based on my own portfolio breakdown but is not exactly how I am investing during retirement.)
- 7% cash (Shove this in mostly in GICs with a little in a money market fund.)
- 29% TD Canadian Index
- 13.125% TD U.S. Index (Currency Neutral)
- 13.125% TD International Index (Currency Neutral)
- 22% TD Canadian Bond Fund (This is one of the rare funds that I would buy that is not an index.)
- 15.75% TD Monthly Income
If you had taken $100,000 at the start of the decade and invested it as shown, and not put in another cent, your RSP would be worth more than $147,139.38 today. The reason it would be more is that I do not have a calculator for GIC investment growth handy and I have already made my point with the equity plus bond results.
So, if you are an investor who had a traditional plan and embraced rich diversification within in a carefully considered allocation model, you probably did alright.
...and yes I know that the TDMI is heavy with banks and also adds to my bond holdings. You can check the TDMI porfolio mix and blend it with your personal goals very easily. I did.
Always look below the hood when buying mutual funds or ETFs.