I got sick with a chronic illness in high school and I have never been able to work. Today, I am 40 and I have an Registered disability savings plan (RDSP) . I now have $155,000 in my RDSP. I will not (and cannot) take the money out of my RDSP before the age of 60. I have 20 years to make this money grow in the best manner. I will not get other inheritance money. If my health does not improve, I need to be able to keep making a contribution of $1,500 every year and the government will give me $4,500 in grants and bonds until the age of 49. I only have about $10,000 invested right now (in stocks and bonds) My account is with TD and I have only invested in e-series funds (TDB909, TDB900, TDB902, TDB911). I believe I will be assertive based on this couch potato model portfolio suggestion and I will be moving to a conservative portfolio around the age of 60.
http://canadiancouchpotato.com/wp-conte ... s-2016.pdf
Here are my three questions.
1) Stocks are incredibly expensive today and I do not feel comfortable investing all my money in stocks right now. It seems like the best thing to do would be to slowly make contributions over time (I can my my contributions on a monthly basis). Of course, if there is a big correction, I would be happy to invest all of my money in stocks (TD e-series fund) right then and there. In that scenario (investing large), looking at ETFs would probably be preferable. Otherwise, what do you think is the best time frame to invest all my money in the stock market? Should I take 5 years to invest all the money? Should I take more time than that or less and why? Again, I would invest everything if the market went down by a lot.
2) What index fund or ETF would you recommend if I want to have just a little bit more exposure to emerging markets and why?
3) A large portion of my money will not be invested for a few years, and I am earning almost no interest on a large portion of the money I have. Many people are moving away from making large investments in bonds as the interest rates will increase (I would use TDB909). Could you please comment on the options I have to invest this money until it is time to invest it in stocks (index funds)? Again, my RDSP is with TD Waterhouse.
Thank you very much for any help you can provide.
Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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