I am within 3 - 5 years of retirement and do not have defined benefit pension. I will be relying mainly on my RRSP, CPP and OAS for the next estimated 25-30 year period. I figure I should be comfortable with the amount I've saved.
As such, I am now in 60 equity - 40 fixed income/cash allocation. Furthermore, to minimize fees and to have diversification within the different instruments, I have bought ETFs.
I am sticking mainly to the TSX Composite, Dividend, and REIT ETFs as well as to the short term bond ETFs. I am comfortable with this approach and had been planning on a yearly re-balancing and small tweaking (like buying some BRIC ETFs, gold bullion trust, etc. - no majour departure) in the future.
Until an investment adviser mentioned that I could be taking on unnecessary risk in such passive investing with the current volatility in the markets. I could be missing out on sectoral buy and sell opportunities as market trends and cycles change.
I am now conflicted. What do you all think? Is your investment philosophy these days leaning towards buy and hold or watchful and active trading? Appreciate your input.
As such, I am now in 60 equity - 40 fixed income/cash allocation. Furthermore, to minimize fees and to have diversification within the different instruments, I have bought ETFs.
I am sticking mainly to the TSX Composite, Dividend, and REIT ETFs as well as to the short term bond ETFs. I am comfortable with this approach and had been planning on a yearly re-balancing and small tweaking (like buying some BRIC ETFs, gold bullion trust, etc. - no majour departure) in the future.
Until an investment adviser mentioned that I could be taking on unnecessary risk in such passive investing with the current volatility in the markets. I could be missing out on sectoral buy and sell opportunities as market trends and cycles change.
I am now conflicted. What do you all think? Is your investment philosophy these days leaning towards buy and hold or watchful and active trading? Appreciate your input.