Financial Independence may only exist once we get there

A World Where Anything Is Possible I won’t lie and say that I have never thought about what financial independence in my life would be like, because I have. Not everyone allows their mind to wander into the future or an imaginary place where dreams can come true, or at least if for only that moment they are. It takes us to a happy place where our world is a capsule in time that we create and where we feel safe, cared for, loved and at peace with the world. Come dream with me Lay down in a comfortable quiet space, draw the blinds, close your eyes and come dream with me for a moment. Follow me gently to another place where I can script the next chapters of  my life, in my mind. There are times when I’ve spent the winnings of a Lotto Max lottery that I fictitiously won in my head because it seemed more visual than it ever would be. A dreamer I am, that is me, yes, especially with the odds of winning with my eyes open, back on planet earth. As I silently engage your thoughts with mine and walk you through my journey […]

An introduction to investing – Part one

Smart Investing Starts With You-Here’s How So, Mr. CBB asked me to do a series here on an introduction to investing after the success of my Investing 101 for Newbies post that I recently shared. I thought that would be a pretty good idea because I don’t cover that too much on my financial insight blog. I’ve decided to split this series into three main components, with smaller components along the way as I deem necessary. The series will get more and more specific as I go along. The Basic Terminology Basic Investment Strategies Risk Management These are the three essentials that every new investor must be familiar with. If you don’t know the basic lingo, it’s like walking around blind. So to take off that blindfold, in this post I’ll be talking about basic investment jargon (investment terms) so at least you know what the news anchor on CNBC is talking about. Position Size Position size is the portion of your portfolio that a certain investment takes up. For example, let’s assume that you have $100,000. If you have $30,000 invested in stock A, then your position size for stock A is 30%. Position size can never exceed 100%. Why is […]

Investing 101 for Newbies

Contribution by: Troy Are you interested in investing and wealth management? Sorry to break it to you, but the world of investing is a lot harder today than it was 30 years ago. With a whole lot of quants (math geniuses) doing computer trading and a much more complex world, investing just keeps getting harder and harder. Now for the good news. For those of you who can wade through all the muck, the profits to be made have never been greater. As volatility increases, more skillful investors have more chances to make ever greater returns. So if your new to investing and one day want to be a kick-ass investor, this is the post for you. Here is some investment advice for y’all newbies out there.   Avoid Mutual Funds   (This is just my opinion – I’m sure others will have their own.) As you transition from a USA 401(k)/ Canadian Registered Retirement Plan (RRSP ) to your own brokerage account, I suggest you stay clear of mutual funds. In the past, I worked for one of those small-time retail customer banks. Essentially, we peddled mutual funds to all our clients without actually believing in any of the BS […]

Buy or Sell First: One Home, One House, Two Mortgages And A Pool

THE BIGGEST DECISIONS OF YOUR LIFE COULD TURN INTO A BIG DISASTER IF YOU AREN’T PREPARED   Deciding whether to buy or sell first can be a difficult decision that face home owners. It is a decision that if not executed properly could leave a homeowner with 2 mortgages and lots of stress. Owning two houses sounds like a great real estate investment but not when one is a home and another is a house you are trying to sell. This is the case with a neighbour of ours who is living the stress yet fails to see the problem, is the price of the house. Typically in the UK we would sell our home first with a reasonable closing date and then look for a new home to purchase.   Research Before You Buy   What to do when buying your first home? That’s easy, research! Talk to professionals and get tips and advice so you aren’t heading down a path where you want to tear your hair out. The same goes when you’re looking for things to do when selling your home, research. When I sold my home I did my research first, granted I wasn’t buying a second […]

What are Realistic Investment Returns

This is a contribution by Troy, blogger behind The Financial Economist. What are Realistic Investment Returns? In these days when Bernake rules supreme, the average citizens of the world are left with two choices. Either we can invest in bonds that yield an unbelievably awesome 2% a year, or we can invest our own money and make a meager 12% in this bull market. Tough choice, eh? Such an obvious choice is what draws so many new investors to the market – the chance to make some real money in this next-to-nothing interest rates environment. Unfortunately, too many investors approach this game with the mindset of a gambler – I’ll be real angry if I don’t AT LEAST double my money this year! Of course, you ask these guys how they know how they can make such pathetic returns, and they’ll say “I can just feel it in my bones!” Now you may be laughing at this, but this is a far too plausible scenario. Too many investors jump right on-board the Investment Train without knowing that this train often runs parallel to the edge of the Rocky Mountains. So what kind of returns can an individual investor realistically expect? Like everything […]

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