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How to allocate money in retirement plan? (image included)

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  • Jun 14th, 2016 11:51 am
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[OP]
Deal Addict
Nov 28, 2008
1352 posts
95 upvotes

How to allocate money in retirement plan? (image included)

Please suggest how to improve the allocation of funds from the current mix.


Image
4 replies
Deal Fanatic
May 22, 2003
6390 posts
3337 upvotes
Vancouver
55% in international equity seems like a lot, no? Maybe others can chime in, but you have 100% in equity. Also, why no Canadian equity? More conservative portfolios would have some allocated to fixed income/bonds. Me personally, I'd split Canadian/US/International equity from 80% and 20% in bonds.
Deal Fanatic
Jun 3, 2009
5062 posts
1033 upvotes
Montreal
I'd suggest 1 of the 3 CCP portfolios where the MER are much lower.
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May 11, 2014
4627 posts
5501 upvotes
Iqaluit, NU
OP, probably better to explain your situation per say before you ask for allocation? Age, risk tolerance, goals, work pension etc. etc.

I'm assuming this is what was given to you from work?
cn_habs wrote: I'd suggest 1 of the 3 CCP portfolios where the MER are much lower.
I'm assuming work related and this is what's provided?
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Feb 1, 2012
1564 posts
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Thunder Bay, ON
This looks like the investment options for a DC pension. As noted by other posters, you need to consider other investments, age, risk tolerance, time to retirement, etc in making your decisions.

In general, the balanced funds are for someone that wants a totally hands-off, one fund pick where the plan sponsor manages asset allocation and rebalances gradually to a less risky asset mix as the member approaches retirement. If that is what you want, just pick the balanced fund where the number in the fund name corresponds most closely to your projected retirement year.

If you want to choose your own asset allocation and are willing to rebalance occasionally if the allocations drift away from your target, then pick from the other fund choices. A typical allocation for a moderately risk tolerant investor would be 40% fixed income, 20% Canada equity, 20% US equity and 20% international equity. If you are young and think you can handle a lot of volatility, go lower on the fixed income.

Finiki (the Canadian Financial Wiki) is a good learning resource that would help you understand which choices to make and why.
http://www.finiki.org/wiki/Portfolio_de ... nstruction
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