Q: I am a 79 years old, retired with a portfolio of stocks (~40%), ETF's (30%) and Cash (30%).
I have good pension income so I don't need monthly income.
I am thinking of moving ~ 15% of my cash back into the market, considering either more VGRO and/or VEQT. Your comment please..
I have good pension income so I don't need monthly income.
I am thinking of moving ~ 15% of my cash back into the market, considering either more VGRO and/or VEQT. Your comment please..
5i Research Answer:
While we can't get personal, if money is 'not needed' then a high cash allocation is likely not necessary. We are comfortable with the current market set-up. There are risks, but that is always the case in the market (if there are no risks, that's usually the time to sell!). VGRO is well-diversified, and has 80% equity exposure. VEQT is also solid, but is 100% equity exposed. This really comes down to asset allocation. VEQT has a better 5-year return (13.35% vs 10.45%) reflecting its higher equity allocation. We think both are quite find. If allocating cash, we would side with VEQT since the question notes 15% cash will still be held so we would be fully comfortable with adding more to an 'all-equity' ETF.