I am new at the investment thing. I have debt but am also in a high tax bracket so want to take advantage of RRSPs and the same time as paying debt (loan is at 5.75% and Mortgage is 3.2%).
My current RRSP in in Tangerine fund (Balanced Portfolio)
I opened a Questrade RRSP Account so I have a lot more flexibility now with what to do with my investments (buy Vanguard ETF).
I’ve seen the Canadian couch potato portfolio recommendations and have been reading the forms.
My question is, should I still follow the simple ETF portfolio advice if my investment window is shorter than most?
I hope to retire in about 13 years (age 45); I have a defined pension that will kick in at 60. Tax-wise, it only makes sense to have RRSPs if I pull all the money out between when I retire and before the pension starts. So I will be living off the money in my RRSP and potentially moving some into my TFSA between age 45 and 60. Therefore I am only planning on holding the investments in my RRSPs for 13 to 28 years before ‘cashing out’. Most people seem to be talking about holding their investments for 60 years or forever (living off dividends).
It seems like I will be in a little bit riskier position than most, I will have TFSA and taxable accounts so I could probably skip withdrawing my RRSP for a couple years if the markets crash a la 2008, but I have a deadline of when I should have the money out to avoid taxes. I could potential lose if market crashes when I'm 56 and takes 5 years to recover.
Thoughts, suggestions, advice?