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Discussion Starter #1
I want to put 20% in a ETF Fund and the other 80% in something safer. I was thinking of putting it in a bond ETF but since the interest rates are so low on them right now, do you think it would be better to put that 80% in a GIC until the prices of bonds fall and the yields increase.

Any help would be appreciated.
 

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What is the ETF fund that you are putting the 20% into?
"Something safer" usually means a GIC :D
Bond funds fluctuate in value and it is quite possible for you to be in the red for a period of time, depending on when you bought.
 

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Yes to waiting for bond prices to lower a bit (they are starting to go down already) and no for the GIC. I Just put the money in a high interest savings account or money money market fund. More liquid. The money is ready when you're ready. Not the other way around.
 

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Discussion Starter #5
I am 58 years old and would like to take out the money in approximately 7 years. So should I stick with a GIC then since bonds can fluctuate?
 

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I am 58 years old and would like to take out the money in approximately 7 years. So should I stick with a GIC then since bonds can fluctuate?
For a 7 year timeframe, don't do GIC.
I'd assumed your time frame was shorter than that.
I'd put the 80% into XSB.
Or, if you are willing to change your asset allocation, do 50% XIU and 50% XSB.
 

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I am 58 years old and would like to take out the money in approximately 7 years. So should I stick with a GIC then since bonds can fluctuate?
Are you planning on taking ALL the money out in 7 years? or begin withdrawls in 7 years. If the former, then I personally would allocate a good portion to GICs or other guaranteed products. However, I'm guessing scenario 2 is the more likely option, and that you will be making withdrawls over the next 15-20+ years. If this is the case, then you'll certainly want some exposure to equities.

If you don't already have one, you should make a plan and project your withdrawal requirements and different portfolio asset allocations. Settle on the one that allows you to safely draw down your RRSP and meet those needs.
 

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Discussion Starter #8
To be more specific, I will make my first withdrawal in 7 years and successive one into the future (most likely 10 -15 years)

So would it make more sense to put 50% in equity and 50% in bonds now and then change the composition as I near the end (say in 10 years).
 

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Discussion Starter #9
I also was wondering what's a good number of ETF's to go with?

I will be re-balancing my portfolio every 6 months so I guess I shouldn't have to more than 4 or 5 to keep transaction fees low. Would that be correct?
 
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