This might seem like a silly question.. I'm still in the early stages of building my portfolio.
A quick run down, I have a time period of over 30 years (23 years old) so my risk tolerance is moderate. I have just started building my nest egg. I'm a Canadian.
My asset allocation plan is:
10% - Canadian Bonds - VAB
10% - REITs - ZRE
15% - US Equity - VTI
15% - INTL Equity - VXUS
50% - Canadian Equity - VCN
I have about 25k in my TFSA which is mainly in Canadian equities. At least 15k of that is in a sort of mutual fund with a stock broker that my parents set up when i was young which I'm in the process of moving over to my own accounts so I can properly sell and allocate the money. Some of that mutual fund holds fixed incomes.
Now my question comes from my RRSP. I intend to hold US equities, specifically Vanguards product VTI in my RRSP so that it will be tax sheltered. At the moment the CAD conversion rate is 1 dollar to every 0.91 USD. Pretty low. I have about 5500 in my RRSP to put into VTI but once I make the CAD to USD conversion, I lose almost 500 dollars in conversion. This doesn't sound good to me and my gut is telling me to wait until the CAD comes up closer to par. Am I being silly and I should just buy? My other thought is to put the 5500 into a fixed income like VAB because once I sell the mutual funds I listed above, I will be in 100% equities which isn't what I want. If I went this route I would not be buying any VTI till the end of the year when I move my companies RRSP match in.
Any thoughts on this? Sorry if it seems like all jumble...