Q: Today, on a risk scale of 1 to 10, 10 being high risk, where would you place a portfolio of 3 parts vbal and 1 part vcns for an 89 and 83 year old couple? Funds should never be required for use, other than being transfered as an inheritance. If wanting to decrease risk a bit, would a one year gic for say 25% be the best idea or?
5i Research Answer:
Without getting personal, and assuming a low risk tolerance and relatively short timeframe, we would be fine with 25% additional fixed income, and a GIC likely would get the highest rate, considering the funds will not be needed. VBAL is 40% fixed income right now. VCNS is 60%. One could argue that if money is not needed then one could be more aggressive, but sometimes money needs do change. We would place 3 parts VBAL and one part VCNS at a risk level of 3.5/10. With an addition of 25% GIC, this could move to 2/10.