Investor Profile I am 47 years ant...

Investor Profile

I am 47 years antiquated married with no children and no liability I have a background in the real estate field, with equal reason in addition to my stock portfolios, I invest in condominiums (Palm Springs, Phoenix etc)

You have impose together two very interesting portfolios. They are reasonably well-balanced the couple as to the number of holdings and as to the amounts you have invested in individual companies. The portfolios are clearly invested for sprouting using a combination of established companies and near younger growers. You are hedging your personal selections with mutual permanent funds and it will be interesting to descry which approach works better for you above the years -- chances are you will benefit from both

INVESTMENT OBJECTIVES

Given your passing from hand to hand circumstances [see profile], your stated objectives of investing for vegetation in your personal account and conservative product in your RRSP seem surpassingly reasonable.

In your literal sense you expressed concerns about Canada and its looming offence problems. Many of us share those interests and I agree that it makes reason to invest significant amounts outside of Canada. In doing likewise however, do not ignore the many Canadian companies whose operations are largely in the U or those companies which are prosperous at exporting their products and know-how. You already have sum of two units such stocks in your RRSP--Northern Telecom and Seagrams. one other ideas are listed in the accompanying Table 1

Table 1

SOME IDEAS: CANADIAN COMPANIES WITH powerful TIES TO THE U.S.

Oil & Gas

Chauvco Resources

Chieftan International

Morrison Petroleum

Industrial

Global Stone

Nova Corporation

SR Telecom

Consumer Products

Semi-Tech Corporation

Speedy Muffler

Financial

Fairfax Financial

Ondaatje Corporation

PERSONAL PORTFOLIO

In your personal portfolio, which is slightly margined, you are clearly going for a mix of established companies (BIC, Bristol Myers, Stryker U Shoe) and younger uniteds (BB&T, Clayton, etc.). I am not familiar with all of the names, if it be not that the prospects for Bristol Meyer and Stryker present the appearance very good. Presumably you either have your acknowledge sources of information or an informed middleman to keep to you up-to-date forward BB&T Financial, Clayton Homes, and others since there is likely to be little information about these companies in the Canadian press

With regard to your brace Canadian holdings, CI Fund Management and CI Pacific, it will be interesting to diocese which does better for your account from one side of to the other the next several years. The former is a permanent fund management company and over time many investment management companies have been better investments than the supplys they promote. As for being upon margin, I see no objection provided the amounts borrowed are unostentatious and for a specific investment position which you can behold working out in the near futurity Keep in mind, though, that leverage can work the one and the other for you and against you. A borrowed position can be exceedingly uncomfortable in a down market.

RRSP

In the case of your RRSP you are clearly going with managed bourgeoning funds to achieve your investment objectives. At the same time, you have chosened a few direct investments so as Royal Bank and Seagrams. Despite your disappointment with Imperial Oil and perhaps Jean Coutu I would beseech you to continue pursuing direct investments. Mutual capitals after all, charge a pay for management, safekeeping, auditing, and the like. In addition, the annual costliness for most Canadian Funds is around 2% a year. However, you as an investor not see this charge since it is take outed directly from the fund. The point is that 2% a year from one side of to the other time does add up, and if you are reasonably prosperous at selecting securities on your possess you may elect to have more directly-owned holdings.

As it stands, your RRSP is completely invested in common stocks and stock-related mutual stocks Over time, this posture will likely work public for you, especially over the 24 years until you reach age 71 However, there are market setbacks from time to time, in the same manner you might want to consider having at least an of your RRSP invested in link positions or stripped bonds and interest warrants to provide some protection and to build in a tie of "sure things."

You have not mentioned by what means you have worked your RRSP up to $161900 Presumably you are contributing the generally received maximum of $13,500 a year. You should also consider making the $8000 permissable over-contribution as well. In addition, contributing early in the year is a great deal of to your advantage. This is particularly pure for someone with so many years of investing ahead of him.

I am somewhat affaired about one of your late acquisitions -- Magellan REIT foundation a U.S. mutual fund. While the investment, as of the like kind is probably just fine and a 9% yield has certain attraction, I bewilderment if this holding puts you through the whole extent of the 20% RRSP limit in succession non-Canadian investments. Remember, investments are valued at require to be paid [i]or[/i] undergone for this purpose.

SUMMARY

In conclusion, I think you have correctly assessed your investment objectives and have diversified your portfolios prudently Since you have the appearance to be having success with the pair your mutual fund and your avow selections, my advice is simply to continue going in the same direction.