I like to read other blogs discussing retirement portfolios. I was just considering the portfolio suggestions posted by the "Cut the Crap Investing" blog. I under stand why all the ETFs mentioned are in the list except for the last one, the iShares bond fund XBB.TO.
Bonds I understand. Keep them to maturity and all your money comes back. You keep the interest payments. But not so with a bond-based ETF. First, the bonds will not be kept to maturity in all the cases of which I am aware. Often the bonds in the fund are sold when one year from maturity. The bonds may be sold at a loss.
I do not hold any bonds at all in my retirement portfolio. I do hold about 10% of my retirement funds in cash. It is in the mutual fund TDB8150 which is paying daily interest right now 4.3%. I find this approach better than shoving my loose cash into a bond fund ETF.
For the full story, click the link: The Simple 7 ETF Portfolio for Canadian Retirees.
