There seem to be a lot of people on www.highinterestsavings.ca that appear to invest in nothing but HISAs and GICs, chasing around multiple institutions for promotions and higher rates. That defines 'excessive' conservative investor to me even though they likely lose 'after inflation' in most instances. A similar style to what many of the Depression era folks did.longinvest wrote: ↑30 Dec 2017 19:54 I'm not sure how to exactly define a conservative investor, these days. Would a conservative investor be 100% invested into high-interest savings accounts and GICs*? This seems so twentieth century to me. I think that in the twenty-first century a really conservative investor would be 100% invested into dividend stocks**.
* A conservative investor wouldn't assume so much inflation risk.
** A conservative investor would only care about the regular and increasing income, not about the stock price.
What do others think?
Maybe those daring to reach out to 'income mutual funds' should really be considered conservative investors, just the way mutual fund salespersons define it in their promotional materials.
I think once one gets to a 50/50 balanced scenario, the characterization starts to change...and the world is their oyster.