In case you haven’t been following along, every two weeks I am contributing $1,000 into the 70/30 portfolio. About 26 weeks ago, I contributed the first $1000 into the 70/30 Portfolio with Questrade. Here is a recap from August 26th 2019:
Now it’s time to contribute another $1,000 into the portfolio. I’m going to be buying just the right amount of individual index funds to keep my target allocations (+/- 1%) within my chosen range. To start, in my Allocation Tool, I adjusted the unit price so that it is current. I then bought approximately $1,000 worth of index funds in a way that kept my allocations relatively close to my original target goals. Feel free to use my allocation tool: allocationtool28022020
The 70/30 portfolio is down $1,282.77 since February 14th 2020, but is down overall $359.72 since August 2019 (total contributions to the portfolio has been $14,000). Notice how this time we did not contribute to the bonds category. We still have 103 shares of VAB.TO (bonds) same as last week while the allocation still remains ~20% bonds. How is this possible? In a correction bonds typically go up while equities go down. So we have to rebalance by buying more shares in the equity categories. So to rebalance, this week we bought all equites to bring are target allocations back in line, this forces us to buy low. By sticking to the 70/30 portfolio we take emotion out of investing. The best possible thing for your portfolio during the accumulation phase is to have a correction so you can buy shares on sale. I’m excited to see what the next few weeks brings us. Next $1,000 contribution will be around March 13th 2020.