Hi all,
I'm a Canadian DIY index investor. I have a maxed out RRSP, TFSA and I have a taxable investment account as well.
I roughly follow the Canadian Couch Potato portfolio, but I'm contemplating adding a chunk of change to my investments, and I'm a bit unsure of how to do so it without throwing my allocation too far out of whack.
Here's a breakdown of my asset locations/allocations:
RRSP:
25% US Equity
TFSA:
20% Can Bond
10% Emerging Markets
10% EAFE
10% Can REIT
Margin Taxable:
25% Can Equity
Basically, the money I want to add (almost 10% of my portfolio) would have to go to the taxable account, but I don't hold anything but Canadian equity there. I have my accounts pretty well balanced at the moment, and my TFSA is maxed so I can't really mess with those allocations by adding any more money.
I would be open to lowering my REIT allocation so that I can bump up my bond/EAFE/EM allocation, and I may have a sliver of room in my RRSP I could add for the US component, but I haven't crunched the numbers on this. I'm thinking I'll need to purchase foreign investments in my taxable account and am a bit hesitant about this.
Also, how do you deal with balancing your portfolio if you add your TFSA top-up at the start of every year? Do you allocate slightly more to those funds so you can add to the others throughout the year to bring things into balance?
Any ideas would be appreciated!