The title pretty much sums it up. My question is, would it be efficient to do create an index portfolio in my TFSA, given that I send funds in it only once a year?
In the past, I've managed my own investments. While I didn't lose any money overall, I didn't do as well as I would've had if I had invested in index funds, or created my own index fund. Now that I'm also about to start a new job, I definitely want to shift gear, and send my money over to passive funds. I'll create my own passive portfolio through ETFs (33% Canadian equity, 33% American equity, and 33% global equity) - Yes, 100% equity, as I'm still young and have a high risk tolerance and high ability to take risk.
Currently, I have two accounts (I'm Canadian, so for some the terms won't be familiar): (1) a RRSP, where I send $200 in it a month; and (2) a TFSA, where I send $5,500 a year. $5,500 is the maximum contribution per year in this account.
Indexing is quite easy in the RRSP, since I contribute on a monthly basis. What about my TFSA, where I only send funds once a year? I could also break it down and send $1,375 every quarter, and invest on a quarterly basis, if that would make more sense.
Note: I do not have any purchase fees when I buy ETFs, only when I sell them. As such, I can purchase ETFs as often as I want, it won't cost me to do so.
Thanks!
Submitted June 27, 2018 at 04:30PM by parad0x88 https://ift.tt/2tJJadv
