Canadian PP

[bluedog]

Hi,

I am new to your site and the PP concept.

I am a Canadian and have an RRSP portfolio that I will not have to touch for 16yrs at 71yrs when Canada Revenue has a mandatory 4% annual withdrawl.

It is my understanding that one holds the 4 assets within their own country.

So, I would appreciate any advice on how to re-model my current portfolio:

    Bonds:    XBB: 55.2%

    Gold:    CGL:  11%  (unable to hold physical bullion within the RRSP)

    Stocks:  CPD 4%

    Cash:    GICS  (due Jan 30, 2012, and July 2013): 19.5%
                  CLF:  7.5% (Canada gov't bonds laddered 1-5 yr duration; I know this is longer than TIPs, but I am unaware of any Canadian equivalent)
                Cash:  2.8%
                Total: 29.8%

I will have $10,000 coming due from the Jan 30, 2012 GIC.

What should I do first?

I am really gun shy of stocks and liquidated all my US and CDN dividend stocks this fall as I couldn't stomach the stock market turmoil anymore.

That is how I ended up with current portfolio looking for low volatity; but it is also before I found the PP!!!

Also, I am using CIBC Investor's Edge to do my own investing and am limited on the selection of long government bonds; would ZFL be ok as an alternative?

What length of duration is necessary for the governement long bonds?

Is CLF suitable for the cash component?

For Canadian Stocks what would you recommend? continue w/CPD (preferred shares index) with it's low volatility and 4.5% distribution, CDZ (index of dividend achievers), XIC (TSX Composite Index)/ Should there be any US or world stock within the 25% stock component?

I did run a comparison of XIC, CDZ and XIC over the last 5 yrs which inc the 2008 crisis, and CPD appeared the least volatile.

I really appreciate any advice, but need to know specifically what needs to be done first and which Canadian components would most fit with HBPP.

Does anyone has any returns history of Canadian PPs with the specific components used?

Also, would one treat their Canadian Tax Free Savings accounts with the same PP philosophy?

We have 2 of these accounts, but as they are new concepts (since 2009) and maximum allowable contribution of $5K per year, there is about $12k in each account.
We will be allowed to contribute another $5K to each acct in 2012.

Thank you all  very much!

PS I hear that a new PP book is in the works...that's great...will you have a Canadian chapter?