Investment Q&A

Q: Hi,

This is follow up to James' question about living off the dividends from these ETFs.

ETFs = XTR,FIE,XEI,VDY,XHY

Suppose I convert my portfolio(s) over to equal weights of these ETFs and start living off the distributions ~ 5.5% yield. I'm ok with the tax situation. I can account for inflation.

What other risks am I taking? When we see another 2001 or 2008 what is the possible impact to the ETF values & the distributions?

I'm not looking for a guess (and certainly not a promise) as to what will happen in the future. I'm looking for a list of additional things that I need to consider about this strategy for my own risk management before pulling the plug on my current working life. A handful of "what-ifs" to consider would be great.

Thanks,

Gord

Q: Hello 5i team, Iam planning to convert a LIRA into a LIF in the coming months. I was thinking of using a fixed-payout strategy of just using the distribution's as income and staying within the LIF rules, using one or a combination of the following ETF'S = XTR,FIE,XEI,do you see any problem's here or can you suggest any other income vehicle or ETF'S
Thank's once again, James

Q: My son is in his mid-thirties and has very limited time available to actively follow/trade the markets. He is looking for a simple, passive investment portfolio with very broad exposure, a modest dividend focus, and that is rebalanced, ideally, once a year. Can you comment on the following proposed portfolio and allocations, assuming about $100k? Are there any alternatives he should consider? Should he modify his approach in a TSFA/RRSP? Thanks.

VAB - 20% (Canadian bonds)
VCN - 15% (Canadian equity)
VDY - 15% (Canadian dividend)
VXC - 50% (Global equity excluding Canada)

Q: Peter and team,
I have about 18K to invest in my daughters RESP which will be required in the following two years, and about 24K to invest in a non reg account for her to use in around two to six years timeframe. This is not money I can afford to loose so I need to invest it carefully. Some say I should be keeping it in a GIC due to the timeframe, however that will not even keep up with the cost of living.
Any suggestions please?