In a financial world that is predominantly digital, the envelope budgeting system brings it back to the basics of
cash you hold in your hand.
My beta seems to be around 0.95, even with
the cash I hold, so a fully hedged account of $ 100,000 looks something like this:
Gross interest on
any cash you hold will be credited to your account quarterly at the Bank of Scotland base rate, minus 3.5 % (min.
It is also possible for a stock mutual fund to pay some interest because it can earn interest on
any cash it holds.
The bank account and
the cash it holds is a business asset and should be owned by the business, so when the business is sold the account goes with it.
The only things you should really consider holding here are Canadian equities (because of the tax advantages), and cash (or something highly liquid, assuming that
the cash you hold here could be needed on short notice).
Jordan Wathen (Vanguard Short - Term Bond ETF): I've recommended a super-safe bond index ETF not because I think you should run off to sell all your stocks, but because I think a lot of investors would do well to optimize
the cash they hold in their portfolios.
MFC Industrial is selling for just about
the cash it holds; you get Michael Smith and the Wabash mine royalty stream for free.
Sometimes you can find a company's market capitalization may be less than
the cash it holds.