An introduction to investing- part two

Strategy Begins With Planning This is the second installment of An Introduction to Investing by Troy, the first of which can be found here. In this second installment, I’m going to be discussing the various investment strategies, and the pros and cons of each. Remember – there is no “right” or “wrong” strategy, only one that works (or doesn’t work) for you. Each investor is different and what works for me might not work for you. How can you determine which strategy fits you best? Test them out one at a time! The long, long-term investor What the long, long-term investor does is rather simply – just keep buying on the dips and hold his/her portfolio of stocks until he’s (or she’s) 60 years old. This is known as buy-and-hold. Every time the market falls, “It’s time to buy more. After all, I’m getting a discount”. Every time the paycheck comes in, set aside some cash to buy more stocks. Pros: The advantage of buy-and-hold does not lie in investment returns. There’s no way you can get 15% a year (on average) just by buying and doing nothing. Rather, the advantage in buy-and-hold lies in the fact that you’re doing nothing that’s difficult. Many […]

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 […]

Protect Your Investment: Planting Tips For Your Vegetable Garden

Growing your own plants or buying them from a garden centre is an investment of your time and money which you certainly don’t want to see wasted. By protecting your investment and taking proper steps towards keeping your plants healthy and strong you can ensure that your hard work will bring you the vegetable garden you deserve! It’s seems like spring is finally here to stay and I have some planting tips for your garden to help keep your vegetables and herbs on track, healthy and happy! Waking up and seeing green grass makes me very happy and very eager to want to get working outside! Just a couple more weeks and I’m going to be ready to start planting my garden. When we started this series we began with my garden growing guide sharing tips about how to start a garden and preparing the soil. Now it’s time to take it to the next level and that’s making sure you take the proper care of your vegetable garden. Whether you are growing a garden bed or a container garden there are a few things to  keep in mind when planting your garden that will contribute to the overall success of your […]

Best Home Renovations-Money Wasted or Money Invested?

Buying a new home also means looking for the best new home renovations or upgrades that fit your lifestyle. When selling a home different renovations can either mean money in your pocket or potentially money out the window. After I’ve shown clients the first few homes in their new home search, we often discuss my “Real Estate Baseball” rule of thumb. What do I mean by this? Three strikes and you are OUT! As soon as potential buyers can tally up three perceived “defects” in your home, they aren’t interested any more (it should be noted that this is by no means scientific). You can’t make a first impression on potential buyers again, so, you need to make a great one at the beginning! I often talk with clients about renovations and Do It Yourself (DIY) projects so they can make the right informed decisions. Sometimes renovations can add to a home sale, but other times they just become another stressful event associated with selling your home and wont generate the return that you are looking for. Here is a list of potential renovations that I often discuss and recommend with clients. 1) Painting When my clients walk into a freshly painted home, […]

Reader Question: Is It Savvy To Cash In My RRSP’s To Pay Off Debt?

ONE OF THE HARDEST FINANCIAL DECISIONS OF YOUR LIFE MIGHT BE WORTH IT   A reader question about whether it was savvy to cash in an RRSP to pay off Debt was submitted to Mr.CBB. He forwarded it to me to share my opinion on this topic with all of you. My short answer is that it depends.   Cashing your RRSP’s   There are several factors to consider if you are thinking about cashing your RRSP’s. The age of the person The withholding tax on the funds withdrawn on the RRSP The amount of debt and its’ interest rate The type of investment held in the RRSP The opportunity cost of the withdrawal To keep things simple let me say if you are doing this and are under 30 then it might not be a bad thing. At older ages you have a shorter accumulation period and time and the magic of compound interest work against you. I have always maintained that paying off debt is one of the best investments someone can make. Let’s say you’re carrying a credit-card balance of $1,000 with 18 percent simple annual interest. That’s $180 a year in charges. Pay off that debt […]

Why Taking Care Of Your Eyes Is A Good Investment

Our eyes are the windows to our soul they say, so why do so many leave them to chance when preventative measures can be taken to protect them. We all know that having the best possible vision makes us more productive individuals. Today’s careers rely on computers and technology which potentially can cause a host of  health problems if  not careful. Eye-strain, headaches, and neck and back problems can all be helped with the proper visual correction. While It’s great to have new glasses, you can easily wear ten-year old frames held together with duct tape. Although you might not get too many dates, you certainly won’t go blind. The real hidden danger in not getting regular eye exams is the risk of eye diseases. Many eye conditions have no symptoms until they reach advanced stages. While there are many problems I could list, the top conditions causing vision loss that could have been prevented with routine eye care are as follows: Macular Degeneration-This disease damages your central vision, blurring anything in direct focus like words or faces. While your risk does increase with age, I have seen signs of macular degeneration start with people in their 40’s, especially smokers. Smoking […]