Assuming a DB pension of 60% of your best 5, indexed to inflation (2/3), what are your thoughts on the slicing of the pie?
A basic CP is 50/50 CDN stocks/bonds. More "aggressive" is 25 bonds, cdn equities, US equities, international equities.
Since the DB pension could be considered the bond , or fixed income of your retirement I am thinking of a CP 100% equities.
My question is then how would you cut things up? I just finished reading Bogle's Little book of common sense investing. He says to put everything in a US total market fund/ETF. Obviously this book is written for americans. I dont think I would want 100% of my money in the CDN market. IMO it is too small, and our index can become distorted if a Nortel, or Potash becomes over weighted, plus we really dont have any Cokes, or PG's.
I am thinking along the lines of 50% US, 25 CDn, 25 international as a starting point.
I dont know if I would worry about currency neutral funds or not.
Your thoughts?
A basic CP is 50/50 CDN stocks/bonds. More "aggressive" is 25 bonds, cdn equities, US equities, international equities.
Since the DB pension could be considered the bond , or fixed income of your retirement I am thinking of a CP 100% equities.
My question is then how would you cut things up? I just finished reading Bogle's Little book of common sense investing. He says to put everything in a US total market fund/ETF. Obviously this book is written for americans. I dont think I would want 100% of my money in the CDN market. IMO it is too small, and our index can become distorted if a Nortel, or Potash becomes over weighted, plus we really dont have any Cokes, or PG's.
I am thinking along the lines of 50% US, 25 CDn, 25 international as a starting point.
I dont know if I would worry about currency neutral funds or not.
Your thoughts?