So I started investing in ETFs in 2009 right after I graduated university at 25. Since then, I've been able to max out my TFSA and RRSPs. I've attempted to learn through reading blogs, forum posts and books but I feel there's more I need to learn so I'm looking for some advice.
I've been following the strategy of placing US ETFs in my RRSPs and everything else in TFSA due to the tax advantages. The allocation worked out at the time where I followed a 25/25/25/25 couch potato method because I only had a certain amount of RRSP room available as my work has a DB pension plan and there's pension adjustments annually so the excess room available to me for investing in RRSPs is minimal. I basically started out with ZCN, XSB, VTI and VXUS with 25% in each. Now with attempts at re-balancing (or lack there of) while utilizing each investment account, there's been quite a few additions and thus skewed the portfolio.
Cut to 2015--since I've maxed out my accounts and started a margin account, my investments are a bit skewed as it's difficult to manage within the confines of each account. I would really appreciate your advice on how to re-align my portfolio while still meeting my objectives. From my understanding, CDN dividends are taxed favorably in a margin account, which is why I began purchasing blue chip companies for their dividends but some of those same stocks are also captured within ZCN.
Using Market Values:
|CDN SHORT TERM BONDS||10814||12%|
|INT'L AND EMERGING MARKETS EQUITY||15021||16.7%|
Note: with the conversion of CAD to USD so unfavorable, I purchased VXC.TO to add to the US/INT'L Equity portion without having to convert CAD to USD--good or bad idea?
Ideally, I'd like to maintain about 15% in CDN short term bonds and the rest evenly spread between CDN/USD/INT'L. I'd also like to start creating dividend income for myself by adding to my margin account--I suppose this would gradually skew the CDN equity more as time goes on as well.
For one, would you recommend I sell ZCN and just purchase CDN stocks directly? I would probably be continually adding to the margin account as I have extra savings from each pay cheque.
Any advice/expertise would be greatly appreciated! Sorry for the long post but I've been a member for a while and this is the first time I'm seeking advice on my portfolio on the whole.