I spot this investment article on MSN.
Recently I've heard lots of good stuff about TD's e-series mutual funds and a balanced portfolio.
I am planning to give it a try myself.
First, to beat inflation.
Second, to form the good habit of putting aside a bit of money regularly.
Third, to get some first hand experience so I can share with more of my readers and friends, especially for those who have been scared away by mutual funds and the concept of investing.
Let's hope for a good turn-out.
Here is the article for beginner and couch potato investors.
Find a low-fee investing strategy
Bryn and Ruby want to simplify their portfolio.
Photograph by Pooya Nabei
(Photograph by Pooya Nabei)
The Problem
Both
just south of 30-years-old, Ruby and Bryn should be very proud of what
they've accomplished so far: $140,000 in combined RRSP savings, in
addition to other investments in TFSAs and non-registered accounts. The
couple, who live in Fernie, B.C., have been deliberately blending
various strategies for the last few years: individual stocks, actively
managed mutual funds and indexed mutual funds. Ruby, a mine engineer,
says she and Bryn, who also works in mining, were comparing and
contrasting their respective returns. But now they have a young child
and just want to focus on a plan that will be easy to manage and have
low fees.
The Solution
Given
the couple's desire to simplify their investing life and to keep
expenses at a minimum, an indexing strategy is a great option for Ruby
and Bryn. Dan Hallett, vice-president and principal of the High View
Financial Group, recommends the couple use TD e-Series mutual funds.
"They're ideal because they're almost as cheap as ETFs but you don't
need to pay brokerage fees, you can invest to the penny, every cent of
distributions can compound through a full reinvestment and they're ideal
for those making regular deposits, as Ruby and Bryn are doing." For
instance, a balanced global equity portfolio made of e-Series funds
would have an MER of just 0.44%. While the couple doesn't need their own
brokerage accounts to buy these funds, they would require a TD online
account to purchase them. Hallett's final recommendation is for the
couple to dial back their risk, as 82% of their portfolio is in
equities. "This looks a little on the aggressive side," he says,
suggesting they limit their stock portion to 75%.
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