The one thing I really haven’t given much attention to lately, is what mutual funds my RRSPs are invested in. As some of you may know, I have all my investments in TD Canada Trust e-funds … and here’s how my money breaks down:
63.04% CDN Money Market
34.39% CDN T-Bill
1.66% International funds
0.91% Canadian funds
Obviously this is not a very balanced portfolio. Just before the market crashed last summer, I transferred most of my money into the Money Market account, which turned out to be a really smart move. I lost a minimal amount of money … and because I just left my money in the MM and T-Bill accounts, I also avoided the crash in January.
But now that I’ll be investing a lump sum of $3k (portion of tax refund), and $300/monthly, I should really have a game plan. So last night, after looking over my portfolio and my options with TD, I decided on the following distribution for the lump sum, and going forward:
33.3% International funds
33.3% US funds
33.3% Canadian funds
I plan on using my RRSPs for the First Time Home Buyer’s Plan … whenever it is I decide to buy (not for a year at least), so until then, my money is in low-medium risk funds.
Can I start to contribute to my 2008 RRSPs right now, even though you can still contribute to 2007 until March 1st? And if so, how do you distinguish whether you’re contributing to 2007 or 2008?
When I was going to University in the USA, the exchange rate was AWFUL. It was so bad that it didn’t even really matter that I was on a full scholarship, because the price it cost for my plane tickets and spending money ended up costing way more per year than what tuition would have cost me if I had lived at home and gone to the local University.
But that was way back when it was between .60-.70 cents to the dollar. See that chart? I went to University from 2000-02. Right when the dollar was at its lowest.
Now, as I type this, the Canadian dollar is worth more than the American dollar. It’s almost unbelievable to me. My trips to Seattle have become more and more frequent this year than in past years, because it’s not as expensive anymore. When I look at the price of something down there, I know I’m basically paying at par, and I don’t have to tack on an extra 50% onto the total cost.
I’d like to think that perhaps if the Canadian dollar had been stronger when I was in University, I might not have come out with as much debt. But that’s not really an excuse. I knew what the exchange rate was when I was living down there.
Some people I know are starting to buy American cash. Lots of American cash. I’ve briefly thought about doing the same, but I’m wary. I’ve never heard of people doing this before, but maybe it’s because I’ve never known the Canadian dollar to be worth more than the American dollar. Do people do this on a regular basis? I was thinking of buying American money now, in anticipation of future trips to Seattle … because the Canadian dollar is eventually going to go back down, right?