Do you wonder whether or not you have the knowledge to manage your own portfolio? Lots of folk worry that they cannot do as well as an expert. Oh? Check the results achieved by a dozen or more so-called financial investment experts. Finding one with a Win-Loss Rate of 70% or better is difficult. Many do not even break even. And many have downright embarrassing average rates of return.
I cropped out the expert's name in the example shown. I took pity on the advisor. Heck, results like this send one running for an ETF like Vanguards VDY. VDY was $40.07 at market close Friday and the five star fund according to Morningstar was yielding 4.67%.
Put 5% in each of the following: RY, TD, FTS, EMA, BCE, T, ENB, TRP and 10% in both VFV and RIT plus 40% in VDY. If you had a $400,000 to invest in a retirement income portfolio, this mix would yield $18,896 annually or $1575 each month.
If you need more income, weight your portfolio toward the higher yielding stocks. If you need more security, as long as cash deposits are yielding more than 4%, like they are right now, shift some of your portfolio money into cash.
Note that the do-it-yourself, simple portfolio gave you some exposure to the American market while VDY, despite its fine yield, does not give any exposure to investments outside Canada. You can put all your money into VDY and call it quits but if you find that satisfying, possibly you should consider a complete portfolio in one ETF like VEQT which is yielding 3.61% today. If that yield is inadequate, pump up the yield by mixing in a little ZWA. This is the BMO Covered Call Dow Jones Industrial Average Hedged to Cdn. ETF. It yields 6.82% today.
There are lots of options beside hiring an advisor. Good luck!
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