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Discussion Starter #1
I have a lot of money in market or progressive GICs what ever you call them or want to call them in my RRSP but Bank Of Montreal has a Life Stage Mutual Funds that are guaranteed if you keep them and not sell until target date, do any of you think this would be better than Market GICS ?
 

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He's just asking whether he'd be better off to hold a particular type of managed mutual funds in his RRSP or stick with his GICs.

"Life stage" or "target date" mutual funds automatically adjust the asset allocation based on the owner's age or "life stage." Fidelity was the first fund company to introduce these (in the U.S. and then in Canada), but lots of companies offer them now.

There are many considerations to take into account in answering the question of whether these would be "better." If the RRSP is all GICs now, generically some equity exposure is usually preferred for most investors; so in that sense life-stage funds might be "better" than an all-GIC portfolio.

However, life-stage funds are usually fairly expensive, compared to GICs or compared to a similar asset allocation undertaken with lower-cost instruments, such as ETFs.

Finally, defining and adjusting asset allocation by time horizon only is very one-dimensional. There are likely other factors (i.e., risk tolerance, tax considerations, the presence or absence of other pension income, desired retirement date, whether the person is single or married, estate preferences) which will have a bigger influence on the appropriate retirement asset allocation than the time to retirement.

However, for people who want a "no-brainer" ONE decision portfolio, these can be OK. I guess. :confused:
 

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Discussion Starter #4
Your post is one jumbled run-on sentence. Can you please rewrite it and be a little clearer? Also, your thread title offers no clue as to the subject. You might have some better responses if you make yourself a little clearer.
reread my post or learn how to read!
 
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