Why I hold 100% Stocks and Real Estate Inside my TFSA

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  1. History has shown us that even after the worst crashes the stock market has always bounced back (the dow jones is currently up nearly 300% from its lowest points of the 2008 crash)
  2. Given points 1 & 2 I have an extremely high risk tolerance. If the market dropped 30% tomorrow, I would not panic as I am investing for the long haul and will wait for the market to rise again.
  3. We are speaking specifically about my holdings inside my Tax Free Savings Account, meaning no matter how much the value of my portfolio increases I won’t pay 1 penny in tax if I sold it all. This creates an incentive for me to be more aggressive in my TFSA than I would in my RRSP or taxable investment accounts.

Vanguard S&P 500 ETF (40%)

What is it? A fund that tracks the performance of the S&P 500 Index, which is an index of 505 stocks issued by 500 large companies with market capitalizations of at least $6.1 billion. It is seen as a leading indicator of U.S. equities

Vanguard FTSE Canadian Index ETF (20%)

What is it? A fund that seeks to track the performance of the general Canadian stock market.

Vanguard Total International Stock ETF (20%)

What is it? A fund that seeks to track the performance stocks outside of the U.S and is balanced between developed markets and emerging markets.

iShares Global REIT ETF (20%)

What is it? A fund that seeks to provies broad exposure to REITs from around the world, which invest in real estate directly and trade like stocks.

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Sharing personal finance lessons I’ve learned on my journey from debt to Financial Independence. Join the Financial Mentor Program: https://bit.ly/35WV7Az

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