I'm a fairly new investor, and although I've read pretty much everything on CCP about asset allocation, I'm still a bit confused! Hoping I can get some input into how to best divide up our savings.
Current:
TD e-series (25% each bonds, cnd, US, int equity)
RRSP 1: 35k
TFSA 1: 30k
Tangerine balanced growth(25% each bonds, cnd, US, int equity)
RRSP 2: 25k
TFSA 2: 40k
Total RRSP: 60k
Total TFSA: 70k
Total investments: 130k
Annual additions:
6k/yr rrsp 2 (we each have a defined benefit pension plan, RRSP 1 has no room left over)
10k each/year into TFSA
I would like to keep things as simple as possible and keep our asset allocations the same as we currently have, but move to vanguard:
VAB 25% (32.5k)
VCN 25% (32.5k)
VXC 50% (65k)
My first plan:
RRSP 1: 7.5k VAB, 27.5k VXC
RRSP 2: 25k VAB
TFSA 1: 30k VXC
TFSA 2: 32.5k VCN, 7.5k VXC
Maybe I should have VAB/VXC in both RRSPs, and VXC/VCN in both TFSAs? Not sure if that will help rebalancing or not.
My understanding is that bonds should be kept in our RRSPs. I see that US equity is also good to place in an RRSP, but how does that work with VXC, which is US and international? Also, since we can contribute so little to our RRSPs compared to our TFSAs, will our RRSPs eventually become 100% bonds, and is this a problem?
Let me know if you need me to include any other information. Thanks!