Future Portfolio & New Strategy

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Hi everyone and welcome back! Today I wanted to share with you what my future portfolio & strategy will hopefully look like in the years ahead. At the beginning of April I was reviewing my portfolio and seeing all the stocks I held when I made a decision that I should change things up.

Before getting into what I want to do let’s take a current look at my portfolio.

TFSA

Currently consists of 21 Canadian dividend paying stocks and 1 Exchange Traded Fund.

RRSP (RBC Direct Investing)

My RRSP with RBC currently consists of 10 Canadian Dividend stocks and 11 US dividend paying stocks.

RRSP (Wealthsimple Trade)

This is a relatively new account this year and it only has 1 Exchange Traded Fund in it.

LIRA

Currently has 2 Canadian dividend paying stocks in it.

New Investing Strategy & Portfolio

For my new ideal portfolio I have no set amount of stocks that I want to hold. I do however want to only hold US stocks in my RRSP accounts and to have all of my Canadian stocks in my TFSA account.

TFSA

My future TFSA account would probably consist of around 30 Canadian stock all dividend payers. I’m currently at 21, the stocks in my RRSP that I want to have in my TFSA are BCE, Telus, Fortis, Enbridge, TC Energy, Bank of Montreal, Royal Bank of Canada and Power Corp.

These eight stocks currently have a value of $59,200 as of April 22nd. With that valuation it will take me years to complete all of this. How do I plan on doing this? Well I currently have just over $2,000 left in contribution room left in the account and $4,300 in cash I plan on making small purchases throughout the year on the stocks mentioned above and using the $6,000 in new contribution given on Jan 1st of every year to continue this process. Also I will be using the dividends from my current stocks in the account to invest in these as well.

RRSP (RBC Direct Investing)

While I’m making the purchases in my TFSA account at some point I am going to be selling the shares of the Canadian stocks in my RRSP account. I have yet to decide on when I will sell these shares, I could wait until I have all the shares of a stock (for example I have 212 shares of Telus I might wait until I have all those shares in my TFSA then sell or I might do it in 50 share allotments). In this current environment I won’t be selling anything anytime soon.

What do I plan on doing with the money once I sell? Well I plan on reinvesting the money into the current stocks I hold in the account Johnson & Johnson, Lockheed Martin, Texas Instruments, Walgreen’s Boots Alliance, AbbVie, Altria Group, Microsoft, Bank of America, Home Depot and 3M.

RRSP (Wealthsimple Trade)

For this account for this year I will continue making small contributions bi-weekly and use the money to continue purchasing the iShares Core MSCI All Country World ex Canada Index ETF (ticker: XAW).

Once I max out my TFSA account hopefully this year, I will switch those contributions to this account and purchase US stocks. Some stocks that are on my radar are Visa, Raytheon, General Dynamics, Union Pacific, Walmart, Cisco, Intel, Proctor & Gamble etc….

LIRA

Not really planning on changing things with this account. I will continue to hold Enbridge and Diversified Royalty stocks and will add to them when the money accumulates from their dividends.

Why Am I Doing This?

I am going this route because I believe I can become better diversified and have the ability to buy more US dividend & growth stocks. At this moment I feel as though with the Canadian stocks in my RRSP they are hindering me in buying more US stocks.

Also I do realize that by adding those stocks to my TFSA I’m not going to get huge capital appreciation with them, but they will bring some stability to that account and over time I will be able to use the dividends received to help grow the account at a nice clip. Also by doing this I should hopefully be able to turn my attention to the US market, as I don’t think I really need to buy anymore Canadian stocks as I have all of the important sectors covered in my portfolio. Although these days it’s making me think I should add a major grocery stock and possibly Alimentation Couche-Tard a huge convenience store chain.

So folks what do you think of my plan? I would love to get your feedback positive or negative that is how we all grow as humans by listening to each other and learning.

Thanks

Matthew

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