Do the index ETF’s offer DRIPs? It seems to me that this would be an ideal program for a “DIY” investor.
As a Canadian, we could augment your program (which doesn’t need augmentation!) with DRIP’s set up directly with certain sectors; e.g. BCE, IPL, TD, FTS, SU.
This is a classic “do nothing” program that also takes advantage of compounding, company discounts on share purchases and no commission fees.
Your comments would be appreciated.
Monday Morning Millionaire Program Answer:
Some ETFs offer DRIPs and some don’t. You can choose a DRIP plan for any stock or ETF held in an account with Fidelity Investments and Fidelity will buy shares and allocate them to DRIP shareholders (without a commission). Most other larger brokerage firms will do the same.
The Monday Morning Millionaire Program recommends rebalancing to your personal asset allocation whenever that ratio changes by 10% or so. Any excess cash, be it from dividends or a drop in ETFs value should be used to rebalance to your asset allocation. There is no need to pay attention to DRIPs.