This is the first RRSP portfolio I have published and I thought I would give everyone a better idea of the types of investments I hold.
As you probably know by now, I tend to invest in dividend paying stocks and hold for the long term.
Related: 5 Advantages of Dividend Stocks
The portfolio is just starting to grow in the last year. I’ve had significant contribution room for a number of years and I have finally been able to start taking advantage of it in 2014. I hope to end the year with a total contribution of about $25,000 – which would mean my RRSP would be completely maxed out.
Related: Common RRSP Myths
My investment timeline is long (20 years) which means I will be able to (hopefully) ride out any market downturns that occur in the future.
The Portfolio – November 2014
Although I currently hold a lot of Canadian dividend stocks, my strategy in the long run is to gradually shift the portfolio towards US dividend stocks – and continue to hold for the long term.
This is because in registered investment accounts US dividends are not subject to withholding taxes, so it’s ideal to hold them in there (in most cases).
Also, my plan for the Tax Free Savings Accounts in the long run is to buy Canadian dividend stocks so I don’t want to become too heavily weighted in the Canadian market.
Related: Hidden Advantages of the TFSA
I tend to favor companies that have a history of increasing their dividends. This is because I plan on using the dividend increases to help fight inflation in the future. I don’t have a pension plan so I will be relying on my investment income when I eventually retire.
Conclusion: as you can tell, the portfolio is currently a work in progress. It generates $5,921 per year in dividends which I hope to see grow in the future.