Q: Dear Mr. Hodson and Mr. Modesto,
I'm helping a friend construct a portfolio worth $375,900. She is a single mother who is planning to retire in a few years. All her children have grown up and no longer require financial support.
Besides CPP and OAS, she also has some other income from other source and wish to supplement her spending with dividend income from the portfolio. She's asked me to help her to contruct a moderate growth portfolio. She said a yearly dividend income of $10000 will be sufficient.
Now, her trading accounts have:
BCE- 73%, SLF- 12%, BMO - 11%, Cash - 4%
Here are my questions. Please deduct as many credit as you wish from my question credits.
Her new portfolio will generate a yearly dividend income of $12954 (yield 3.44%) from $375,900.
Financial -22% - keep the BMO(11%), SLF(12%)
Utitility -16% - AQN, BEP.UN, H, KWH.UN
Energy -10% - ENB, WCP, PKI or TRP
Consumer -16% - PBH, ATD.B, DOL, TSGI
Industrial -11% - NFI, WSP, TCL.A
Health - 4% - CSH.UN, GUD
Technology - 12%- CSU, ARKW, Please suggest: Nasdaq index?
Telecomm - 6% - BCE
Cash - 3%
My questions are:
1) For a moderate growth portfolio, is the sector allocation appropriate?
2) Do I need to further diversify BMO and SLF?
3) In each sector, do you have any suggestions for the right stocks? Feel free to add or delete.
4) Please let me know which stocks you would recommend to add first?
5) For a person close to retirement age and no experience investing in US, is it necessary for her to invest abroad? What's your opinion?
6) All the above proposed stocks, which growth stocks should go into the TFSA? What are your top 5 picks among the growth stocks above?
Thanks as always
Esther
I'm helping a friend construct a portfolio worth $375,900. She is a single mother who is planning to retire in a few years. All her children have grown up and no longer require financial support.
Besides CPP and OAS, she also has some other income from other source and wish to supplement her spending with dividend income from the portfolio. She's asked me to help her to contruct a moderate growth portfolio. She said a yearly dividend income of $10000 will be sufficient.
Now, her trading accounts have:
BCE- 73%, SLF- 12%, BMO - 11%, Cash - 4%
Here are my questions. Please deduct as many credit as you wish from my question credits.
Her new portfolio will generate a yearly dividend income of $12954 (yield 3.44%) from $375,900.
Financial -22% - keep the BMO(11%), SLF(12%)
Utitility -16% - AQN, BEP.UN, H, KWH.UN
Energy -10% - ENB, WCP, PKI or TRP
Consumer -16% - PBH, ATD.B, DOL, TSGI
Industrial -11% - NFI, WSP, TCL.A
Health - 4% - CSH.UN, GUD
Technology - 12%- CSU, ARKW, Please suggest: Nasdaq index?
Telecomm - 6% - BCE
Cash - 3%
My questions are:
1) For a moderate growth portfolio, is the sector allocation appropriate?
2) Do I need to further diversify BMO and SLF?
3) In each sector, do you have any suggestions for the right stocks? Feel free to add or delete.
4) Please let me know which stocks you would recommend to add first?
5) For a person close to retirement age and no experience investing in US, is it necessary for her to invest abroad? What's your opinion?
6) All the above proposed stocks, which growth stocks should go into the TFSA? What are your top 5 picks among the growth stocks above?
Thanks as always
Esther
