Too Conservative Portfolio

in Investments

At my yearly visit to my bank to redeem RESP Money, the TD Mutual Fund Guy I was with, commented I had created a too conservative portfolio. I smiled, didn’t say much and moved on, but he did add that it was a good idea for my daughter’s RESP as I was drawing money from it, so I shouldn’t be too aggressive now.

too conservative portfolio

Investing is a Jigsaw puzzle isn’t it ?
(photo courtesy jscreationzs FreeDigitalPhotos.net)

What was this conservative portfolio? A simple exact duplicate of the Canadian Capitalist’s sleepy mini-portfolio:

TDB909 – Canadian Bonds – 25%
TDB900 – Canadian Equities – 25%
TDB902 – US Equities – 25%
TDB911 – International Equities – 25%

How this is a too conservative portfolio I am unsure, as it is 75% in equities, and 25% in bonds. I suppose for folks like Michael James this is Conservative (MJ on Money has specific views on bonds and equities for investments), but for me, it seems fairly aggressive, in that you are 75% in equities, and there are no GICs or Money Markets in this model at all.

I could make it more conservative and go with 15% Bonds and 10% GICs (or Money Market Funds), but I am happy with this mix for a few of my investing portfolios. If I was going to be more aggressive (which I am not going to be) I suppose I could take the percentages and then invest in individual company stock, but I don’t really see the need to do that.

Another way to morph this, was that if you wanted a more aggressive Sleepy Portfolio you could go:

Canadian Dividend ETF 25%
Canadian Equity ETF 25%
US Equity ETF 25%
International ETF 25%

But I would really only use that kind of model in a non-tax sheltered portfolio, so that your “income” from the portfolio would be dividend based and thus taxed at a lower rate.

Question: I am willing to say I am conservative, but are these investment choices too conservative?

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