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I have about 50K of bank funds and 50K of cash in my RRSP. I am thinking of doing some re-arranging to improve the returns and cut down the MER by becoming a couch potato investor. What could I do? And is this a good time to move everything all at once or a little bit at a time given the recent economic and stock market situations?

Thanks.
 

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I have about 50K of bank funds and 50K of cash in my RRSP. I am thinking of doing some re-arranging to improve the returns and cut down the MER by becoming a couch potato investor. What could I do? And is this a good time to move everything all at once or a little bit at a time given the recent economic and stock market situations?
I'd suggest a gradual entry.
Identify the stock/fund that you would like to own.
Then determine the range of price that you consider good value for that stock/fund.
Wait for the price to be in that range and then buy.

Unless you are putting all $100K into the same stock/fund, it is unlikely that all your holdings will hit the target price at the same time.
So you have to buy as and when it makes sense.

This also ensures that if there is a major market "correction" soon after you buy, you won't be deep in the red for several months.
 

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Is it better to move the funds to different ETFs first and then the 50K cash? For example moving the Canadian Equity mutual fund to XIU would just moving asset of the same class and I won't be "buying high" so to speak.
 

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Early in this process you need to assess your risk tolerance. It will depend on the size of your portfolio, employment income, knowledge of investing and tolerance for roller coaster rides.

When you have a good idea of your risk tolerance, decide on an asset allocation - a goal percentage for stocks, bonds, cash or other asset classes. Stocks can be further allocated to country groups (Canada, US, EAFE, Emerging); or styles (value, growth); market caps; or market sectors. Given enough decades, value and small caps tend to outperform

You have $100k, which is worth a little more effort than a typical couch potato portfolio of large cap, cap weighted Canada, US, EAFE and bond funds. You can easily incorporate value, small caps, emerging markets and under-represented or uncorrelated sectors. But you may end up paying 0.50% MER or a little more.

If you want some value, size and sector diversity, the equities portion of your portfolio might look like something like this:

15% Canadian mostly Large – XIC (0.25%) or TDB900 (0.31%)
10% Canadian Value ETF - XCV (0.50%)
10% Canadian Small-Mid ETF – XMD (0.55%)
15% US Large ETF – XSP (0.24%) or TDB902 (0.33%)
10% US Small ETF – XSU (0.35%)
15% EAFE mostly Large – TDB911 (0.48%)
15% Emerging Large ETF – CWO (0.65%)
10% Real Estate ETF – XRE (0.55%)

Note that the TD e-series funds have only slightly higher MERs, and are much easier to manage in small amounts. But be aware that some ETFs and some e-series are hedged to CAD and some aren't.

15% might seem high for emerging markets and low for developed markets, but CWO still includes Korea and Taiwan which really are developed but are not contained in MSCI EAFE yet.
 

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Yeah kinda tough to provide input based on the brief paragraph that you posted.

No offense, but I could only tell you what I would do with 100K with in my RRSP.

What were you thinking of doing with it? How long til you retire and plan on accessing the $?

It is always a good time to reduce the MER.
If you were planning on keeping the 50K fully invested, then I see no harm in transferring it to another fund/ETF/Equity at this point.

Not sure on your comfort with risk/reward. Maybe you don't like the funds you are in and want a $ position right now. Not sure.

When I first read it, I thought bank funds meant you held common stock of that particular bank. Now that I reread it, I think you meant mutual funds. Again not sure on the particular funds you are currently in.

Tough to give a financial opinion as requested, based on a paragraph on info.
 

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Critiquing my previous post. Like any portfolio with significant Canadian indexing, the financial component is pretty heavily weighted. You could reduce Canadian content, or maintain it by reducing large cap ETFs and buying individual stocks like a non-financial dividend aristocrat or two.
 
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