Over the years, I've saved, save some more, but have not really rationalized any of my assets. I'm now wondering if I'm swimming in the wrong pools and trying to figure out if I need to make any changes to my Asset Allocation. This type of question seems to be more art than science so I'm just wondering for those successful artist out there what changes would you make if you made any?
Synopsis: Canadian- living in Canada, investing when I can. No intention of moving out of this great country.
My assets are as follows:
Cash Account: Mutual fund driven today. Trying to decide if its worth taking a tax hit to change into EFTs:
23.6% of total Assets in Cash Account
MAC Precious Metals MFC 1042 8.9%
MAC IVY Foreign Equitey MFC 1025 5.2%
MAC Cundill Value MFC 1024 6.3%
MAC CDN All Cap MFC 3748 3.2%
RRSP:
XIC 62.8%
QQQ 9.1%
TFSA:
XIC 3.4%
I think you're mostly wrong if you believe good investing is an art. In my mind it implies your belief in fiddling around with your portfolio and jumping around between asset classes would provide better returns than sticking to a formula which is tried and true.
Good, long term portfolios are mostly science. You find a formula that has worked in the past, should continue to work in the future, and meets your personal tolerance for risk. Then you stick with it through thick and thin because you know it works over the long-term.
One look at your portfolio tells anyone with a bit of investing experience that you have a huge problem: lack of diversification and bets on past performance. It shows amateurity, but it is very fixable.
70% of your portfolio is in Canadian equities.
For US exposure you chose QQQ which is driven by tech.
Your cash account is loaded with high-fee mutuals.
These issues will hold back your performance, costing you lots of money over the years. You're very susceptible to a market crash.
My suggestion as a starting point is to read the Bogleheads guide. It's US-based, but the principles apply to Canada as well.
https://www.bogleheads.org/wiki/Getting_startedCCP is great, but I wouldn't jump into it until you understand the concepts and accept the returns of passive investing.