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My latest crack at a "Retirement Portfolio"

Saturday, May 29, 2021

A portfolio yielding nearly 4% annually

I have some friends with about $340,000 to invest in a self-directed portfolio as they prepare for retirement in a few more years. I have tried to create demo portfolio tackling their problem. I put the money in eleven dividend paying Canadian stocks, three ETFs (VIU, VFV and ZPAY) and I left the remainder, a very small amount, in cash.

 

 

At the first of each month I will post the month end balance. I am hoping to realize almost a full four percent of cash income annually. Stay tuned and we will see how I have done.

Oh, you may have noticed a dearth of bonds in this demo portfolio. At this time, I do not want to hold many bonds. I believe bonds are going to lose value in the coming months. This Bank of Montreal ETF, based on U.S. equities usrs options to increase its yield while, in theory, minimizing volatility and managing to deliver about 6.5% annually. As I need a high dividend-paying investment in order to even get close to my 4% annual income goal. I am betting the yield on ZPAY will be greater than its market loss. Time will tell.

To see the portfolio report larger, hold down your ctrl-key and tap the +key on the left side of the numeric row of keys near the top of the keyboard.

  • Sat., May 29 -- $340,000 -- Opening Balance -- Cash is $143.40 -- This will grow with dividends.
  • Mon., June 21 -- $346,152 -- Cash at $16.72 -- This will grow with dividends.

It is a little early for the present results to have much meaning but after three weeks my newest portfolio is showing promise. I have already done a little tweeking. I have cut my holdings of both BNS and IGM and put the money realized from these sales into ZPAY.



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