Protecting your principle while generating a fair return
There are many managed money (mutual fund like) investment options. In Canada alone there are over 20,000. There are a further 70 plus financial institutions offering GIC’s and term deposits. A program I subscribe to lists over 100,000 investment alternatives and this is by no means comprehensive. That’s a lot to sort through.
If you invest your money into stocks, bonds, mutual funds, or a managed investment that is made up of any of these, the risk to your capital can be greater than you are willing to accept. With so many choices out there it can feel like a gamble with your life savings to pick one.
If you invest in GIC’s you have a guaranteed yield, but how are you going to generate a fair return? GIC rates are among the lowest they have ever been in Canada. This is not a good thing when you are about to earn your living from the interest. $500,000 invested in a 2% GIC earns $833 a month. This is very modest living from your life’s savings leaving you no alternative but to spend less or use up your invested capital if you need more.
So what is the solution? Just because interest rates are very low in Canada, does not mean they are just as low everywhere in the world. I can provide you the right direction and expertise so you can be safely rewarded by gaining access to these higher interest rates.
What about using the stock market? In order to get a better rate of return than the near zero returns that a guaranteed investment provides, many people turn to the stock market. Although in many years you may do well the obvious downfall here is that without warning the stock market can drop significantly taking your life savings with it.
Suppose I told you there is a way to avoid these major declines but still have the upside the stock market provides?
Think of how house insurance protects you from your house burning to the ground. Insurance provides a cheque that offsets your losses. It makes you whole once again (minus your deductible). We have no idea when our house could burn to the ground, just as we do not know when the stock market will experience its next major decline. I can protect your life savings in a manner very similar to how house insurance protects your house, eliminating the need to know when the next crash will happen.
Lets call your investment protection “price drop insurance”. With this protection in place, you can participate in the good years without having to expose yourself to the bad. You can sleep at night knowing you have protection and no longer need a crystal ball.
If you had any portion of your investments in stocks, you know how badly you did with the stock market crash in 2008. We all know that the stock market will experience another major decline again. My clients did better because of this 2008 stock market crash than they would have without it because there is above average opportunity, but only with the right direction. The good news for them is that the stock market will go down again, allowing the opportunity for above average returns again. How will you fair with the next stock market correction? I would be glad to share with you more details of how my clients profit from market declines.
On that note, we are past due for the next major market decline. I also have evidence that the next stock market decline will be significant.
I would like to offer you a value added service for taking the time to view my website. I will make myself available to act as a sounding board. Please understand, you do not need to become a client to take advantage of this service. The reason I do this is because I became a financial advisor to help people make informed decisions with their financial future. It’s very fulfilling.
One of two things typically occurs when going through this process; either I validate for you that your current approach is fundamentally solid, or I reveal a few minor flaws that you might want to consider adjusting. As you know, minor adjustments can often lead to major improvements down the road. Either way, I will make myself available and ensure that this is a great investment of your time.