#17 – Asset Allocation, are we on target?

asset allocation

In this episode, the guys discuss asset allocation and location. Are we on target? Are you? The beers we sample are from Cali this week! If you found this podcast you’re probably familiar with the FI/RE movement that has grown in popularity recently. Here at the FI Garage, we’re all on the path to FI, however, we consider the RE part optional.

*These show notes are for entertainment purposes only.

Beer #1 – Pacific IPA – Brewed and Bottled by Santa Cruz Mountain Brewing in California [1:05]

Canadian Beer vs American Beer [3:00]

Useful Tool – Money Ready App [4:30] – Financial Planning Time Machine

The FI Garage is going to FinCon 2020! [11:40]

Asset Allocation and Location [12:30]

  • The Mechanic’s Portfolio [13:30]
    • Too spread out, too many legacy equities
    • Fixed Income allocation is around 10 percent but moving to a larger percentage as he moves towards FIRE
  • The Accountant and the Economist hold zero fixed income [15:20]
  • Don’t confuse Risk and Volatility [16:10]
  • Is it worth holding bonds to be able to reallocate? [16:30]
    • The Economist asked this question and came to the conclusion that it is not worth holding bonds just in order to reallocate*
  • Bias to Canadian Holdings [22:00]
  • What to do now that you’ve created a Home Bias? [23:10]
  • You can direct your brokerage to move equities between different types of accounts [23:45, 26:00]
  • We talk asset location [24:30, 36:35]
  • The garage’s CAN/USA/International allocation goals [27:35]
  • Mark Seed says you should worry about asset location not allocation, correct assets in RRSP, TFSA, non-reg [36:35]
  • REITs [37:25]
  • Dividend-paying ETF is also an option in you would like a dividend strategy without the work [46:40]
Beer #2 – Foggy Forest Double IPA – Brewed and Bottled by Discretion Brewing in California [41:15]
Reading List

Spoiled for (ETF) Choice via FIGarage.ca (The Economist)

My Asset Location, Location, Location via my Own Advisor [36:35]

Is this Canada’s Best REIT? via MoneyMaaster [40:20]

3 Comments

    1. Winter is coming, so we’ll look for another chance to pump your tires when we’re drinking cold weather beer

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