PORTFOLIO ADVISOR

Charles and Bet tina Cr ohs man have to simplify their investment portfolio and boost the equity portion to ensure their retirement. Chartered financial analyst Nigel Roberts recommends that the couple hold the following stocks and bonds:

•Four banks: perhaps Toronto-Dominion Bank, Bank of Nova Scotia, Royal Bank of Canada and Wells Fargo& Co.

Two tel cos: say, Tel us Corp. and BC E Inc. *Four pipe lines: En bridge Inc ., Trans Canada Corp. P em bin a Pipeline Corp. and At co Ltd.

Three energy companies: perhaps Ce nov us Energy Inc ., Chevron Corp. and Suncor Energy Co. An income trust: for example, H& R RE IT Three consumer products companies: such as Dollar am a Corp ., Boyd Group Income Fund and Aliment at ion Couch e-Ta rd Inc.

Five foreign consumer staples companies like U nil ever, Coca-Cola Co ., Walt Disney Corp ., Starbucks Corp. and Johnson& Johnson. A railroad: say, Union Pacific Corp. Precious metals: perhaps Ag ni co Eagle Mines Ltd. and Gold corp Inc. For the fixed-income side:

30% of the portfolio can be in provincial bonds, which tend to pay about a third more than Government of Canada bonds. Bonds can be laddered from one to five and one to 10 years. The advantage of actual bonds over a bond exchange-traded fund is that the former mature at a known and certain price while ET F scan carry gains or losses forever. 5% should be in preferred shares. And 5% goes into corporate bonds with maturities of no more than four years. Bonds should be in registered accounts, as interest is fully taxable. This portfolio allocation will give the couple inflation protection and the likelihood of rising income. As the bonds mature and high-cost mutual funds are sold, the Cr ohs man scan maintain a substantial cash position for buying opportunities. Bond income would be modest, but bonds area form of portfolio insurance, gaining in price when common shares plum met.