Does anyone else think CCP is too Canadian-focused?
I (23 year old) graduated last year and have been working full-time for just over a year. I'm starting to put on my adult hat and wanted to get my finances and investments in check. After browsing this sub and r/personalfinancecanada for awhile, I saw the Canadian Couch Potato (CCP) was commonly recommended so I did more research.
Looking at the model portfolios, I noticed both the TD e-series and ETF portfolios have 40% invested in Canadian markets (equities + bonds). I feel like having 40% invested in Canada (30% Canadian stocks and 10% Canadian bonds) is not a good idea especially since Canadian markets have historically under-performed. Does anyone else think CCP has too much Canadian exposure and that it would be better to allocate more to US/international (e.g. up to 70% from 60%)?
If it matters, I'm living in Toronto with a base salary of ~$80k. I plan to put my bonus ($10-30k) into savings and just live off my salary.
For a refresher, the TD e-series consists of:
- 10% CAD bonds
- 30% CAD equities
- 30% US equities
- 30% international equities)
The ETF model consists of:
- 10% Canadian bonds (ZAG)
- 30% Canadian equities (VCN)
- 60% global equities excluding Canada (XAW)
Posted Dec 16, 2018, 11:52 PM UTC