Minimalistic investment portfolio for 2019
This article is about the investment allocations for a disciplined minimalist Canadian investor for 2019. I decided to use only two asset classes in the liquid side of the portfolio: equities and government bonds, while also considering the primary residence as part of the portfolio. For a typical Canadian, the primary residence is a considerable part of the family assets. Many advisers do not include the real estate in the NAV and in the portfolio analysis - I think still that real estate forms an integral part of one's assets. So we assume that the family has around a half of assets placed in the house equity and a moderate mortgage. The proposed sample 2019 allocation is below: Global Equities: 40% Government bonds: 15% Primary residence: 65% Borrowing/Mortgage: -20% Why not allocate more to equities? A family that owns its primary residence already has equity exposure - as a rule of thumb, we can assume that a house is basket of 30% equities and 70% fixed income, so th...