Hello everyone, I am not asking for advice, I just wanted an opinion if what I am doing is right or if I leave things as they are. I started my TFSA with Wealthsimple from scratch in July 2019. I contributed around 60k to date and now it's standing @ 92k From outside, the portfolio looks like it did a good job in 7 years but when you see the details it performed below average because the portfolio was build literally 1 share at a time and since Wealthsimple introduced fraction shares, I started doing that as well and every time I have excess money I dump it in there. The problem now is that I have 55 holdings (mixture of individual Stocks + Various ETFs) Some positions are very big and some are very small. Some performed well and some tanked. As of last week, I did a review of my portfolio and decided the following: Consolidate all my holdings from 55 positions down to 5 ETFs from the same issuer. I selected iShares and my plan is to build a portfolio that is (XEQT 60% - XBB 20% - XEI 10% - XQQ 5%- XEF 5%) I already own XEQT in my current portfolio. The plan is to keep this allocation as is for at least 5 years and rebalancing it to (XEQT 45% - XBB 35% - XEI 10% - XQQ 5%- XEF 5%) for another 5 years. The goal is to grow my portfolio from 92k to at least 150k in the next 10 years. I am contributing $100 biweekly to this portfolio - This might change in the future. I am 57 yo and I would like to spend less time tweaking my portfolio when I retire in the next 5 years. Is this a good strategy for the future? I am not asking for investment advice....I just want your insight if you please. Also, when I am making all these sales and purchases within my TFSA...Am I going to flag my account with CRA? Thanks
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2 Comments
R
@brownsugar · 23d
Obviously, not financial advice, but I’m someone who felt my 16 holdings needed to be trimmed down. I personally don’t stock pick, and I’ve written about that on my page. My core is two ETFs, XEQT and VDY, which I contribute to consistently. I have a few other ETFs that are more specific to sectors I think may do well in the future, but they’re not part of my core. I’ve had some good results with my energy/fuel-related holdings, so I’ve just left those alone. I also sold two REITs and closed out a few individual stock positions I’d held for years because either they weren’t performing well or they no longer fit my strategy. There was also an ETF that performed really well for me, but it had too much overlap with XEQT, so I sold it and reinvested the gains into XEQT. I’m someone who prefers a simple portfolio that’s easy to monitor. Your strategy seems to be working for what you want out of your portfolio, especially if simplicity and ease of monitoring are important to you. And for the positions that have done really well, you don’t necessarily have to sell them. You can always keep them and simply stop contributing to them.
Karim B@kdzb50 · 23d
Thanks R
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