What’s in My RRSP?

Over the years, I’ve disclosed a lot of information about my financial life including:

With the RRSP line item in my net worth updates becoming more significant, I’ve been getting more questions about the contents of my RRSP.

The Strategy

As you may have read before, I treat all of my accounts as one large portfolio, and practice portfolio allocation.  That is, to have a diversified portfolio, but place the equities/bonds in the most tax efficient account.  For the most part,  Canadian equities are placed outside of registered accounts, foreign equities and bonds within the RRSP, and high yielding equities in TFSA’s.

Contents of my RRSP

While the goal of the RRSP is to be completely made up of foreign equities and domestic bonds, it is still a work in progress as it’s transitioning from being a mishmash of positions.  I still have 20% held in CIBC index funds (Canadian, US and a bond fund) that I started investing in years ago, a couple of significant Canadian positions in oil and gas and REITs that I purchased in early 2009, and 8% cash.  Eventually, the REITs will migrate to my TFSA.

Despite holding some Canadian positions, the significant portion of the portfolio is in US dividend stocks and international exposure through the Vanguard ETF VXUS.

The US Dividend stocks include:

  • Abbott Laboratories (ABT)
  • ABBVIE Inc (ABBV – this is an ABT spinoff)
  • Carnival Corp (CCL)
  • Caterpillar (CAT)
  • Coca Cola (KO)
  • Conocophillips (COP)
  • Deere & Co (DE)
  • Exxon Mobile Corp (XOM)
  • Intel Corp (INTC)
  • Johnson and Johnson (JNJ)
  • Mcdonalds Corp (MCD)
  • Microsoft Corp (MSFT)
  • Pepsico (PEP)
  • Procter and Gamble (PG)
  • Visa (V)
  • Yum Brands (YUM)

For those interested in strong US dividend stocks that have a history of  increasing their dividends, but not interested in purchasing individual stocks, Vanguard’s ETF VIG is a good bet.  They have reduced their MER from approximately 0.30% to 0.13% which is great value for this type of dividend ETF.  It’s even better value if you have a discount broker that offers commission free ETFs.

VIG top holdings are:

  1. Procter and Gamble (PG)
  2. Walmart Stores (WMT)
  3. PepsiCo (PEP)
  4. Coca-Cola Co (KO)
  5. Chevron Corp (CVX)
  6. International Business Machines Corp (IBM)
  7. Exxon Mobil Corp (XOM)
  8. McDonald’s Corp (MCD)
  9. United Technologies Corp (UTX)
  10. Abbott Laboratories (ABT)

So there you have it, all the investments that I hold within my RRSP.  If you’re up to it, share what you have in your RRSP along with your strategy.

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FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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KW
6 years ago

Hey there, could you explain why you choose to invest in only US stocks and funds in your RRSP? Similarly, why are Canadian equities outside of registered accounts, and high yield equities in your TSFA only?

Sampson
8 years ago

Just trying to understand how the decisions are made ;) and you need more post topics anyway right? Just curious where you put the most importance into.

We start with super broad categories – equities, bonds, reits, cash. My wife’s portfolio is 100% indexed (except company stock, and a few killer deals during 2009-2010).

Then portfolios get sliced and diced, so equities and bonds are classified by region, soon reits hopefully.

Lastly, holdings under my own name get further sub-classified by economic sector. Lots of work, but I like to measure and look at numbers anyway.

Minguione
8 years ago

Hi Frugal trader,

I understand the tax efficiency of your RRSP, but as with my RRSP, you are exposed to FX (USD) variations. How do you hedge (if at all) this exposure?

Sampson
8 years ago

Wife’s is, 100%, except her company stock, so 85%.

Mine is loaded with US stocks, and possibly some mid-cap indexes, but it is bursting out the seems. I don’t have much room (DB pension) so US equities are spilling out into non-reg accounts.

I wonder if you have ever posted the total breakdown, asset allocations of all your accounts?

Sampson
8 years ago

Wow, finally, after 5+ years.

I guess it has to do with the transitioning and use of different products. That being said, I suppose we could have inferred based on what you post about your leveraged portfolio – interesting you don’t hold bonds. Is this because of your pensions?

indigo
8 years ago

Could you explain how to get started for someone who has RRSPs that need to be reinvested? How do I go about this?

Norman
8 years ago

Mutual funds holding us stocks are not subject to us estate taxes. However, owning us stocks including etfs are subject to us estate taxes.
But due to the latest signing by Obama, you would need assets of 5 million. I doubt many of us have that problem

Andrew
8 years ago

Thanks for the help.
Glad to see Million Dollar Journey going strong after all these years.