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My latest crack at a "Retirement Portfolio"

Tuesday, June 22, 2021

Investing not trading

At the end of May I designed a small portfolio of $340,000 to demonstrate my approach to investing. I did this for two close friends who are switching their retirement funds from a financial manager to a self-directed portfolio.

I created the portfolio, "May 29 2021 Portfolio", using Portfolio Manager found on the TD WebBroker site. It is June 22 and this little portfolio is up almost $6100. Yesterday, I created a report. Take a look.

It is a fairly conservative portfolio that is heavily weighted toward dividend paying investments. It is delivering almost 4% annually in dividend income.

Although it is top heavy when it comes to Canadian investments, it does contain a good amount of  U.S. exposure and a bit of international as well.

The only item of interest, as far as I am concerned, is the Bank of Montreal ETF ZPAY.

Instead of holding bonds, I opted to put my free cash in ZPAY. I have to admit that this is a questionable investment. That said, ZPAY in up more than $800. It is performing exactly as I hope it would -- maybe even a little better.

If there is a solid correction, more than 15%, I will consider selling some or all of the ZPAY, probably at a relatively small loss, and spreading that money among the equity holdings.

If there is no correction or bear market, ZPAY should hold its own while delivering 6% or more in cash dividend income paid monthly. Come back in a year and we'll have a better handle on how well my investment strategy, expressed this portfolio, performs in real life.

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