from Ralph Vandervoort
Most people are familiar with the basics of Investment/Segregated funds. Your deposits (as little as $50.00/month) are pooled with OPM (Other Peoples Money) to create a large sum of money (millions or billions) and professional managers (which we could not afford on our own) are hired with pre-stated styles and objectives on investing these funds. These people have resources and experience we cannot obtain on our own. V Group has selected Hub Capital * as its investment dealer through whom to place our clients' investments.
There are two basic ways to invest, you can be an owner or a loaner!
The owner invests directly in things (stocks) that you expect to go up in value, but of course it can also go down too. The advantage is that many (30-60) different types of stocks can be purchased, so even if some go down the others may go up. The loaner lends money and buys bonds or GIC's, or puts it in a savings account and receives interest. The bank then loans that money back out to individuals, businesses, or even countries. You have a less volatile investment, but also generally get a lower return.
Investors working with financial advisors generally achieve higher returns than those without advisors!
Professional managers have different styles of investing such as: bottom up, top down, value, momentum, and growth. They can invest by geographic region (Europe, USA, Asia), by industry (technology, financial, resource), large or small capital business, labor sponsored venture capital, or any combination of the above! Investors should get the proper mix of investments and styles.
If you want to get rich, concentrate; if you want to stay rich, diversify!
The federal budget of 2005 eliminated the foreign content rule, which had limited RRSP’s to 30% foreign content. Now 100% of your RRSP may be foreign content.
The key to successful investing does not lie in trying to time the short term direction of the market, rather it is the balance between the risk and return potential of different types of investment instruments that is crucial.