Investing

RRSP has been stagnant, should I move it?

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  • Jul 27th, 2012 4:02 am
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[OP]
Newbie
Jul 25, 2012
6 posts

RRSP has been stagnant, should I move it?

So a few years ago I was working at a job that offered a company-mathcing RRSP plan through SunLife that I signed up for. I no longer work there, but since then I've thrown in more money whenever I'd had the chance. I'm in my late twenties now and I've started doing research on the financial world and it's starting to seem more and more like my current investment is barely growing at all.

The fund I chose was something called 'SLF 2040 Milestone' but these days it appears that only about 10% of my portfolio is in this fund and the other 90% is in an 'SLF Money Market' fund. I realize the last few years have been pretty rocky in the markets, but I've been involved with these guys for almost 5 years and it appears that I've hardly made anything at all (talking fractions of a percent here)

I do my banking with TD and I've actually opened a Waterhouse account recently that I picked up a couple dividend stocks in. I've been hearing things about their e-series lately and am wondering if it might be a good option for me. Having all my investments in one place sounds appealing, though I have no desire to micro-manage my RRSP. If I could find a fund with a decent return that I don't have to babysit, that would be ideal.

I dunno, I guess I'm wondering if I'm just being a baby here? Or if anyone could enlighten me with their experiences with Sun Life funds / TD e-series. I'm looking for other opinions at the moment.

Thanks,
3 replies
Deal Addict
Oct 4, 2009
2422 posts
1164 upvotes
Montreal
How and why did you end up with 90% in a money market fund?

An e-series portfolio is relatively easy to manage but it's not as simple as owning a single balanced or target year fund. If you absolutely value simplicity above all else I'd look into ING's all in one solutions. Not actually recommending it though since you've already got a TDW account and the extra effort of building an e-series portfolio is well worth the cost savings(~.6% per year).

Here's what a typical globally diversified e-series portfolio would look like for a late 20s investor saving for retirement. 25% each in:

TD e-Series Canadian Bond Index Fund (TDB909)
TD e-Series Canadian Index Fund (TDB900)
TD e-Series US Index (TDB902)
TD e-Series International Index (TDB911)

Rebalance to original allocation every 1 or 2 years or when adding new funds. It ain't rocket science but requires discipline which is why I asked the first question above.
[OP]
Newbie
Jul 25, 2012
6 posts
I'm not real sure how it ended up getting allocated like that to be honest, maybe to mitigate the recent recession? Seems like it should've been shuffled back in recent years though.

I realize I still got quite a while until I retire, so I still have a decent amount of discipline/risk-tolerance. I only recently started getting really interested in the financial world, so I guess I was feeling like I should really know what I'm doing before I built something myself, but maybe it's not as complicated as I thought.
Member
User avatar
Sep 22, 2008
202 posts
31 upvotes
Toronto
1) You HOPE you have "quite a while" before your retire.

2) Investing is as complicated as you want it to be. And even the giants - managing $billions in pension plans - regularly lose money.

3) Yes you should get out from SunLife ASAP. You have provided the proof in your OP.

4) http://canadiancouchpotato.com/
BiweeklyAaron wrote:
Jul 26th, 2012 5:28 pm
I'm not real sure how it ended up getting allocated like that to be honest, maybe to mitigate the recent recession? Seems like it should've been shuffled back in recent years though.

I realize I still got quite a while until I retire, so I still have a decent amount of discipline/risk-tolerance. I only recently started getting really interested in the financial world, so I guess I was feeling like I should really know what I'm doing before I built something myself, but maybe it's not as complicated as I thought.

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