Foundation stocks and their relation to your portfolios.

Thank you!

It makes sense somewhat, as we get these questions lots! Haha.

Keep in mind, these are "model" portfolios. The key thing about a model portfolio, is they aren't meant to be mimicked exactly. They're modelled after a typical age group and risk tolerance we feel would be suitable. But this is just a John or Jane Doe. Every investor is different and if you're going to apply one of these portfolios, they're only meant to be a starting point.

Keep in mind, these portfolios are also only the Canadian Equities. Depending on your risk tolerance, it may be wise to look at some fixed income options. Along with that, it's definitely wise to look at international markets. Investing JUST in Canada in my opinion is a big mistake. You're putting yourself at extensive risk, as you're relying on one economy in the world.

I purchase Canadian stocks only, and I use ETFs to diversify globally. For example, I own XUU, which is an American ETF and with new contributions in 2021 I plan to buy XAW, which is a global ETF.

This is more of a personal choice from me, as not only it lets me laser focus on Canadian stocks to help me outperform here in Canada, but it also lets me exclusively focus on Canadian options for Stocktrades Premium. I don't mind having some index funds that provide me with market level returns.

So, in terms of allocations, originally we said the GenX portfolio contains 65% Canadian equities. The other 35% is completely up to the individual investor. They could hold cash, fixed income, or like I said international options.

Or, if you like the makeup of the aggressive but don't want to go THAT much in equities, you can lower the allocation. Or, you can raise it. Like I said, they're "model" portfolios, and aren't meant to be a one stop solution. Instead, a strong guide to building a better portfolio.