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All your Options

Their Pros and Cons

Finally you get the Truth

Your Options See Below

"You don’t have to be out of debt to rollover an existing investment to a better return"

OUR RATES RETURNING OVER 11% ANNUALLY. ZERO RISK

CURRENT VALUES Canadas top RRSPs CLICK ME

Working with an investment advisor

They advise, you make decisions. You are paying them for advice and the ability to teach you enough to make smart decisions about your investments. You are not handing over this responsibility because they are professionals. Retain ownership and responsibility for all final decisions.

Don’t invest in anything unless you can easily explain how the investment works to someone else. If you can’t communicate easily with your financial advisor, find one that does a better job of communicating. Take your time and make wise decisions.

A note on Separate Account Managers: I will never use these. They are third party investment professionals that buy and sell stocks or mutual funds on your behalf. Do what is best for you and stick with a team of managers of large and experienced staff.

OUR TACTICAL MODERATE BLEND RRSP PLANS AVERAGED OVER 11% ANNUALLY FOR THE LAST 30 YEARS.

History

Segregated fund contracts were initially offered by the Canadian insurance industry in 1961. Traditionally, segregated investment funds were sold and managed by insurance companies. More recently, the segregated funds contract has evolved to where mutual fund corporations and financial institutions offer their own versions of segregated funds. These are typically referred to as Guaranteed or Protected funds and they are available in registered and non-registered forms and a wide range of asset allocations. Typically, the new versions market existing mutual funds and then marry them to an insurance guarantee rather than creating a new category of mutual funds. So a guaranteed investment is just a traditional mutual fund plus an insurance wrapper.

Guaranteed Investment Funds

Here’s our team approach. We select guaranteed investment funds that have a winning track record of more than 5 years and preferably more than 10 years. We don’t look at their 1 year or 3 year track records because we think long term. We spread investing evenly across four types of funds. That means we put 25% of investments into each of the following:

• Growth and Income Funds

• Growth Funds

• International Funds

• Aggressive Growth Funds

This approach has been very successful CLICK IMAGE to see what the guaranteed returns have been giving our clients

Now for the latest on PROs AND CONs OF YOUR OPTIONS

Single Stocks

Haven't found a PRO yet. We do not recommend single stocks and do not suggest single stocks as part of your investment plan. Over the long term, single stock investors don’t consistently generate returns as high as mutual funds. If you really want to own a single stock, limit it to no more than 10% of your investment portfolio. They are subject to extremes. Your golfing buddy has not figured it out.

Certificates of Deposit (CDs)

PRO: short term only

CON: CDs are not good for long term investing. They offer a low return rate, carry penalties for early withdrawals, and have a significant lack of access. We recommend CDs only for short term savings if it allows access without penalties. Actually the are a fancy receipt, that say's

"Hey, I made a bank deposit"

Bonds

PRO: Investment ? Not really.....

CON: pays you usually less than the rate of inflation. We do not suggest any bonds. Despite their stereotype, single bonds can be very volatile, can go down in value, Like Enron and go broke. they have lower returns. Not what you need or want.

Fixed Annuities

PRO: good for the company not you

Simply put, stay away from fixed annuities!

Virtually impossible to access any funds while your living,

Low returns, High fees, once you give them the cash they

control it not you.

Variable Annuities (VAs)

VAs are savings contracts with a life insurance company. The primary benefit of VAs is the tax deferred growth. However, RRSPs, TFSAs and Traditional self directed RSP offer tax deferred growth without the additional costs that VAs charge. VAs charge penalties and taxes for early withdrawals , we do not suggest VAs.

Exchange Traded Funds (ETFs)

I don’t own ETFs and I do not suggest them as part of your investment plan. ETFs are baskets of single stocks that intend to operate like mutual funds. Sounds good in theory but they are not guaranteed Investment funds.

Real Estate Investment Trusts (REITs)

As a category, REITs just don’t stack up to good growth guaranteed investment funds. We do not recommend any REITs and don’t suggest them for you. If you really want to invest in REITs, limit them to no more than 10% of your local investment portfolio.

Equity Indexed Annuities

Equity Indexed Annuities contractually agree to limit your loss while you agree to limit your gains. We do not recommend these. very high commission, penalties etc etc..

Insurance: Life, Disability and Long Term Care (LTC)

I recommend purchasing 15 year (or longer) term life Insurance that’s equal to 8 - 10 times your annual income, cover debts for sure. We strongly suggest purchasing long term disability insurance in the event you become disabled if it is affordable. Make LTC a part of your plan when you turn 60.

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