Time, Timing and Currency Issues

Questions:

Dear Milan,

I am a new member and have a few questions.

I am very unhappy with my present situation where my portfolio is stagnant, and yet I am being charged 1% of my portfolio value annually.  I love your investment approach; however, I will be 64 this year, and I am thinking that this is not something that I should start as I don’t have time on my side. What are your thoughts on this?

Secondly, I plan to retire in 3 to 4 years and, considering the high level of the US stock market, would it not be risky for me to enter it now?

Thirdly, I read through your book, which was very informative, but it left me wondering about currency risk for a person who lives and spends in Canada. I can certainly see the advantage of investing in US dollars when the Canadian dollar is high but at present, it is at its lower range so once again given that time is not on my side I am left wondering what to do. I would appreciate any insight or advice that you could give me.

Susan

Monday Morning Millionaire Program Answer:

Thank you for your kind comment about our investment approach. Please note that the Monday Morning Millionaire Program contains opinions only. We do not provide any investment advice or endorsements.

Isn’t it interesting that your portfolio is stagnant in the sharply rising market which we have had since 2009? A rising tide lifts all boats (including garbage) yet, some managers underperform by a large margin. Predictably, they take good care of themselves.

The chart below illustrates how your portfolio should have done. Of the 10 investment types reported, equities have been the best investment for over 100 years!