Initial Value $49,910.30
February 20, 2013
Update Value $69,242.99
February 23, 2017
By Gordon Pape
Two years ago, in February 2013, we launched The Income Investor RRIF portfolio. Its goals are to protect capital and to provide higher cash flow than investors could get from conservative securities like bonds and GICs.
At the time, I noted that during a period of low interest rates, it’s impossible to set up a low-risk RRIF portfolio that would produce enough income to meet Ottawa’s minimum withdrawal requirements. That’s still the case today.
This RRIF portfolio balances the two objectives of income and safety by putting a significant amount into low-risk assets and the rest into higher-yielding securities.
The RRIF Portfolio increased in total value by $3,061.53 in the latest six-month period for a gain of 4.6%. Since inception, four years ago, we have a gain of 38.7%, for an average annual compound rate of return of 8.5%. This is well in excess of our target and a very good result in this low interest rate environment.
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