Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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5 Responses

  1. Natalie says:

    Slow and steady wins the race.

  2. Nice, save portfolio Harry. A little surprised by the large(r) XSB vs. XBB holding. I like the idea of XSP though, I have been considering that one in my RRSP for awhile…

  3. Financial Cents,

    I believe Harry went with XSB because it's more of a short term bond index fund than XBB. Considering that interest rates are historically low, that made the most sense to him.

  4. Jeff says:

    Harry is a bit conservative for my liking, at age 50 with 15 – 25 years of growth potential still ahead of him. Providing the idex (S&P/Dow…) are selling at or below fair market value which I feel they were in 2008 and are still fairly valued. With the dow historically returning 11.5% over the long term I can't help but think Harry might do better with a 70-30 split, index funds to bond funds, especially considering the average person is living into their 80's now. I guess the key is to be able to look back and accuratley value the indexs and make sure to buy on the dips and ride out the highs. Harry might be down a little from his current portfolio but moving forward I believe his returns would be much superior with little added work. On that note I couldn't agree more regarding saving the 2-3% annual fees tied to managed funds that continue to underperform the basic S&P/Dow indexes. Saving the 2.5% management fees Compounded over 25 years on a $100,000 portfolio equates to $85,000 and takes minimal education/ time.

  5. Andrew Hallam says:

    Thanks for the thoughtful post Jeff. I think Harry is going to try beating a 100% equity indexed portfolio (with the added bond safety) by rebalancing his account. The MoneySense couch potato portfolio has beaten the TSX index since 1976 by rebalancing with a 33% bond allocation. We'll see if Harry can do the same thing. He thinks he can.

    Thanks again for the thoughtful comment–you are right about straight equities beating straight bonds. Let's see what kind of discipline Harry has. If he has no discipline, then you're right, his bonds will drag him down.

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