Cracking the Code: The Ideal Portfolio Allocation

After looking into why low-yield, high-growth stocks matter at retirement and how to find them, we hit an important part of a portfolio: the allocation! Your portfolio allocation explains your returns and its strengths and weaknesses. Don’t overlook it; make it perfect!

Go back to the previous episodes of the Dividend Income for Like series:

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You’ll Learn

Mike returns to Finance 101 by distinguishing between asset allocation and sector allocation. This look back will bring you further.
Should income-seeking investors be 100% equities? What would be the perfect asset allocation for them?
In previous episodes, Mike highlighted the risks of high-income products like covered calls. The podcaster makes a quick summary of the topic.
Mike often suggested retirees make a cash reserve using a bond ladder. What is a bond ladder, and what does it represent regarding allocation?
At Dividend Stocks Rock, we believe that investors should not put more than 20% in a single sector. Mike goes over why that number is important and how it protects investors.
Some investors could say: “I don’t mind diversification. I’ve been heavy on CDN banks in the last 20 years, which has served me well.” How does diversification bring more money?
Are there any sectors to avoid when aiming at income? Why is it key to know what each sector brings?
Vero brings up a third type of allocation that many investors might never have considered: low-yield, high-growth stocks vs high-yielders. Why is it important to consider?
Which portion should each represent when seeking a balance between income and capital gains?
In the end, what’s the perfect allocation?