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How to allocate funds?

3188 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?

Eddyo
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To get back to the OPs original question, from what was said, I would do something like this: 40% TD CDN equity - e, 40% TD Bond -e, 10% TD Dow Jones -e and 10% TD Int equity -e.

However, that being said, I know what Rickson was getting at. The way the question was phrased, leaves the impression that you (the OP) are fairly new to investing. (That is one reason I suggested such a large bond component.)
I would suggest reading several books: "Investing for Dummies" by Eric Tyson (please take no insult from the recommendation - it's a very good book), "The Four Pillars of Investing" by William Bernstein and "Stocks for the Long Run" by Jeremy Seigel.

Index funds are a reasonable place to start when your investing knowledge is limited. You may want to limit your investments, until you read at least those 3 books.

As a general rule, I would say that you should aim to read an investing book a month for the next couple of years (reserve them from the library) -- Perhaps put it in the bathroom. :)
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