book review: Protect your nest egg

footprint is "canadian guide to wealth protection", I borrowed from library.
I have never had a financial advisor, from my past experience, people always try to advise thing for their own benefit, i.e. the personal banker always try to sell something to me even though it's useless for me. The best option would be know as much as I can, and make the decision myself. all weathy people have good financial knowledge. I should be the same.
factors that impact wealth
- 28% tax efficiency
- 25% risk management
- 24% cost
- 15% asset mix

For tax efficiency
- I contribut to RRSP and RESP to defer and reduce tax. For non-RRSP, I will borrow from my HELOC account, the interest from HELOC can be deducted from the return from investment.
For risk management
- I will hold 80% of my portofolio in a diversified allocation, then use the 20% as sector rotation.
For cost
- I primarily use ETF and index fund, as research indicated, 80% of the active managment fund is under perform the market.

my ideal asset allocation within my portfolio is
20% canadian/US equity
20% International
20% Emerging market
20% bond
20% sector rotation

new year resolution for year 2007

My goal for year 2007 is to raise my net worth by $100K to $700K. below is the break down and estimation.

Real estate: expect to have 5% price raise this year, that will be $25k.
paydown mortgage: another $20K
Stock profit: $25K
Employee benefit(pension/ESSP): $10K
Bonus: $10K
saving: $10K

Most part are pretty much fixed, i.e housing price, mortgage, pension. some are uncertain, i.e bonus, the only part I need to focus is the profit from stock market. Hopefully I can make even more by end of the year.

china stock

I bought some China ETF (FXI), it is up nicely. I am waiting for any pullback to get more shares. In the past 12 month, China EFT is up more than 50%. China rocks.

Gold price is up

The post I wrote on Sep 28 said to switch to .... I didn't say because I don't want to mislead. Actually I switched some fund into Precious Metal fund. Gold price is up sharply today. I expect the trend will continue.
BTW, oil price is over $62 a barrel now.

oil price pased $61

As expected, energy price is coming back. That also means inflation is coming back. When inflation is high, it's time to low your risk, reduce small/mid cap holding, switch to ....., I am not financial adviser, so no recommendation.

energy stock is up sharply today

Can not believe TSX is up so much today, Energy stock is up sharply today. hahaha.

Enerygy stocks

In the last few months, oil and energy stock has been down quite a lot. currently it's below $60/barrel oil. In the long run, I think it's going to rise, as China is in high demand of energy. There is no sign that China is going to slow down soon.

So I have loaded up some energy funds yesterday. We will wait and see if any luck.