Friday, February 4, 2011

My Own Advisor: My Index Investing Strategy

My Own Advisor: My Index Investing Strategy

My Index Investing Strategy

After dividend investing, I consider myself an index investor.

I use index investing to achieve market performance in our RRSP and TFSA investments. My plan is to buy and hold ETFs in these accounts in order to create a healthy "nest egg" for my wife and I when we choose to retire.

The essence of index investing and why I like it:

1. It produces market returns.
2. Over time, this strategy beats almost every active money manager around.
3. It keeps my investing fees very low.
4. I can purchase ETFs that have low tracking errors.
5. I can reinvest the dividends paid to me every month and quarter.
6. I can keep a portion of my portfolio in fixed-income; income that's secure.
7. It's a perfect compliment to my dividend investing strategy.
8. It's an excellent compliment to our defined pensions from work

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