Want to Retire Wealthy? 3 New BMO (TSX:BMO) ETFs Are All You’ll Need

These three Bank of Montreal (TSX:BMO)(NYSE:BMO) ETFs meet all the needs of investors who want to retire wealthy.

| More on:

You don’t need to be a professional trader or hedge fund manager that consistently outperforms the markets to retire wealthy. You don’t need to be making six or seven figures, either.

What you do need is the patience to stay invested and the discipline to stay out of your own way. Stocks are liquid assets, and you can flip them for less than $10 in a week after purchase, but that doesn’t mean you should.

Market liquidity is both a blessing and a curse. For beginners who seek to enjoy the upside without the downside, excessive trading activities are more likely to have the reverse effect, as beginner investors are more likely to act on pure emotion caused by short-term fluctuations, rather than logic.

By committing not to time the market, you can do wonders for your retirement fund, but doing so will make for very dull conversations at the water cooler.

While others brag about perfect timing into and out of the hottest marijuana stocks, you may be scoffed at for admitting that you invest in index funds or Bank of Montreal (TSX:BMO)(NYSE:BMO) ETFs, like the three I’m about to show to you in this piece.

While perhaps dull to talk about, the following three BMO ETFs can tilt the risk/reward trade-off in your favour over time. And as you won’t be as tempted to ditch baskets of securities on short-term-focused news, you’ll be more likely to stay out of your way as the markets do their thing.

Without further ado, here are the top BMO ETFs that could propel you to a comfortable and wealthy retirement:

BMO Conservative ETF

As in hockey, sometimes the best offence is a good defence. In today’s volatile market, there’s no better safety play than the BMO Conservative ETF (TSX:ZCON), a new ETF with a mere 0.2% MER (that’s cheap!) was designed for risk-averse investors seeking low-risk income and growth.

The ZCON consists of a mix of bond index funds, the S&P 500 and TSX Index funds, and an emerging market index fund to ramp up returns.

The bond-to-equity ratio is approximately 60/40, so for retirees, the ZCON is a one-stop-shop investment that won’t require much thought or worry about the state of the broader economy.

BMO Balanced ETF

If you’re not yet retired but may be within the next few years, the BMO Balanced ETF (TSX:ZBAL) may be more your cup of tea with its 40/60 bond-to-equity allocation.

Similar to the ZCON, the ZBAL is essentially a fund of funds with a mix of various bond index funds and equity funds with exposure to the U.S., Canada, and the rest of the world.

The only difference between the ZBAL and the ZCON is the slightly higher weighting given to equities. Although there are ample balanced mutual funds out there, which are also funds of funds, products like the ZBAL are a fraction of the price with its 0.2% MER, which is the same price you’ll pay in fees with the ZCON.

Why pay a 2% MER for a balanced fund of funds when you can just pay a tenth of that figure with the ZCON? For older investors, products like the ZBAL are a way to save yourself a fortune in fees.

BMO Growth ETF

Finally, for the growth-savvy passive investor, there’s the BMO Growth ETF (TSX:ZGRO), an equity-weighted blend of index funds suitable for investors of all ages. As it also sports a low 0.2% MER (much cheaper than most mutual funds), it gets my gold star of approval.

Have a look under the hood and you’ll see that the ZGRO is a fund of index funds with an 80/20 equity-to-bond ratio.

The ZGRO is suitable for retirees and passive investors seeking an 80/20 mix who would rather not pay a third of their retirement to a professional money manager to obtain the same allocation, likely with similar funds.

Foolish takeaway

DIY investing has never been easier, thanks to BMO and its new line-up of bond/equity blended ETFs at ridiculously low fees. Save yourself a fortune in fees and go with the ZCON, ZBAL, or ZGRO, depending on your personal risk profile.

Unless you’re retired or close to being so, I’d stick with the ZGRO and its 80/20 equity-to-bond allocation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Dividend Stocks

Canadian dollars are printed
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Toronto-Dominion Bank (TSX:TD) stock could do well in the year ahead.

Read more »

monthly desk calendar
Dividend Stocks

Monthly Income: Top Dividend Stocks to Buy in November

Here are two of the best monthly dividend stocks in Canada you can buy in November 2024 and hold for…

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »