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How to allocate funds?

3191 Views 6 Replies 5 Participants Last post by  Dr_V
Hey Guys,

Finally got me TD e-series TFSA account sent up and ready to make my first purchase.

I going to deposit the max amount ($5000) but am unsure on how to divvy it up.

Should I go with mostly bonds (similar to what ING offers)?
Should I spilt it equally between Bonds, Can/US/Inter equities or should I forgo the bonds all together and go with equities only??

My plan to use this account as a long term savings account ( 5, 10 years +) and looking for moderate risk and growth.

What would you suggest?

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No offense, but from your post, I would recommend GICs.
While GICs (fixed income) are a fine component of any portfolio, I don't think that it's reasonable to assume that he should invest in them to the exclusion of other financial vehicles.

The question that the OP posed is rather complex, but thankfully, has been addressed in a few decent wikis/blogs. Take a look at:

In my strong opinion an investor should seek to invest in assets where they are able to identify opportunity.
In this case, rather than identifying singular opportunities, the OP is seeking to invest in all opportunities by holding index funds. It seems pretty clear to me that the OP isn't at a point where he either wants or has the ability to invest in individual assets, and would rather hold low-cost funds for both the simplicity and reasonable returns. There's no shame in that -- it's an approach that is known to work pretty well, particularly for people with limited investing knowledge or with limited desire to "dissect" stocks (as advocated by Graham).

My interpretation of the OP's post is largely that he doesn't want the most conservative strategy, but doesn't want the most aggressive one either, and I get the feeling that he is ready to invest for the long haul (given that he stated that he's seeking a long-term strategy). As a result, the OP may find the following link relevant to help them put together a portfolio.
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