Doing it yourself

Implementation

Don't put all your eggs in one basket. Once you have an investment policy with an asset mix, your job is mostly done. The asset mix goes a long way to getting you a diversified portfolio. Now we go the rest of the way. Nowadays, you need not buy a single stock or bond in order to invest. For every asset class in your investment policy, there is a low-cost and tax-efficient vehicle that will work for you. What works in Canada as this is written? Exchange traded funds are listed with symbols.

Fixed income:

  • Individual bonds or GICs purchased through a broker
  • Barclay's new bond ETF (XBB)
  • PH&N Bond
  • CIBC Canadian Bond Index [for clients with more than $150k at CIBC]
  • Claymore Preferred Share ETF (CPD)
  • Diversified Preferred Share Trust (DPS.UN)

Equities - Canada:

  • Units S&P/TSX60 Index Fund (XIU)
  • iUnits S&P/TSX60 Capped Index Fund (XIC)
  • iUnits S&P/TSX Midcap Index Fund (XMD)
  • CIBC Canadian Index Fund [for clients with more than $150k at CIBC]
  • TD Canadian Index Fund - e

Equities - U.S.:

  • Vanguard Total Market VIPERS (VTI)
  • S&P depositary receipts (SPY)
  • iShares S&P 500 Index Fund (IVV)
  • iUnits S&P 500 Index RSP Fund (XSP) [registered accounts only]
  • Vanguard Extended Market Index VIPERS (VXF)
  • CIBC US Equity Index [for clients with more than $150k at CIBC]
  • TD US Index - e [use RSP version in registered accounts]

Equities - Overseas:

  • iShares MSCI EAFE Index Fund (EFA)
  • iUnits MSCI International Equity Index RSP Fund (XIN) [registered accounts only]
  • Vanguard European Stock Index (VGK)
  • Vanguard Pacific Stock Index (VPL)
  • Vanguard Emerging Markets Stock Index (VWO)
  • iShares MSCI Emerging Market Index (EEM)

Costs matter. Do not succumb to the siren song of marketing. Mutual fund companies tout last year's winners but neglect to mention the fees. Banks tout their portfolio managers but neglect to mention the fees. The fees are what will kill you in the end. The average mutual fund in Canada charges 2% a year, the average wrap account about 2.5%. It sounds so innocuous. Yet paying those fees for 30 years, the average working life, will result in half your retirement savings ending up in the hands of the mutual fund companies and the advisor they paid to sell you the products.

You can overpay for advice. You can double your retirement savings. You can retire ten years earlier. It's up to you.

It's not news; it's noise. Pay no attention to news. Not the paper, not the TV, not your golf buddy's hot tip.