I actually have some of that ! (please, pretend to be surprised) I will let you borrow it (I have LOTS to spare - I've been "investing" for MANY years) if you can get approval from "management".
I daresay that the portfolio I just indicated to you is virtually risk free on longer time horizons. 1year is short term, so I would likely start the conversation by saying that your return expectation are to high, or your risk tolerances must be increased. If you understand the portfolio structure I just gave you and the option writing strategy that goes on top of it, you would likely see the light. I don't believe I ever said EASY and as a licensed advisor I cannot say guarantees either. The return you are seeking is simply the avg equity returns that are generated on 10 year rolling averages. So, I again go back and say, either adjust your expectation, time horizon or risk tolerance. If you would like me to pm you with a specific portfolio and options strikes I can. I can then explain the strategy to your clearly as well. However, if you are just picking arguments, don't waste my time.
Not picking an argument...if I wanted to do that I would just start a thread on how much better Husky is then KTM :wink: Your last post just summed up perfectly everything I have been saying If you want more return you must except more risk. If you want to win more at Black Jack you need to make higher bets... it is just about betting more when you win and less when you loose. Too bad you can't predict when that will happen. In the end it is all just noise.
I don't know much about this topic but I'm sure glad that my Father-Inlaw got me investing years ago. I was 20 yrs old when I met my wife and when she took me home to meet her parents the first words out of her Dads mouth were " So what do you know about Mutual Funds?". Well I knew nothing and was spending money as fast as it was coming in. When I first started, the Advisor that I had gave me the chart that shows one guy starting to invest $2000.00/yr at age 19 and stoping at age 26. By the time he hits 65 he's got over $1000000.00. The Other fellow starts investing $2000.00 yr at age 27 until he hits 65 and has only got about $800000.00. Note all this assumes 10% growth. I'm now 34 yrs old and had to stop investing about 3 yrs ago because we moved into the GTA. My advisor said that it would not be a big deal for me to stop investing for up to 5 yrs so I can afford a slightly higher mortgage but I'm still in line with that fellow who started at age 19. I am lucky as the company I work for has a geat pension plan which is good because I'm sure that my two kids who are 2 yrs and 6 yrs are going to suck out alot of my investmemts when they get to post secondary education. Thank God for the RESP!!
somewhat correct, but if you understand risk/reward, you have a superior strategy that is very low risk for the return it generates. KTM is better than Husky, no discussion required there :wink: :lol:
Gerry good man. To understand the power of compounding over long time horizons can be lost on many. I don't see a prob with starting an offtopic thread particularly when no dirt biking is happening anytime soon. Good luck.
Nice.... include the .com bubble (a massive upward skew!), a BIT of an exaggeration!!!! I really appreciate the modesty, right in-line with CFP policy and procedures (ethics and code of conduct) :!: rely on your OWN due diligence folks!
Only problem is... too bad that because of inflation, $1M won't be enough to retire on. You need to be putting away a lot more than that. 10% per year is really where the target should be. That's a more realistic target to be able to retire and continue the standard of living you currently have. Just coming up with some number which sounds good now... is weak. $1M won't be worth $1M in 45 years... That's the problem I have with this whole thing... As an engineer, if you pay me for my advice, and I'm wrong, you can sue me. If you can't offer guarantees, what good is your advice? Is there anything in the "licensing" body that prevents bad advisors from taking my money? Not really. I didn't say "illegal" advice or theft or anything. Just "bad" advice. Will you lose your license because of giving advice that loses your clients money?
During the last market meltdown a friend of mine who is a FA worked for his cousin's firm. They talked the talk, drove the nice cars and their **** did not stink. Once the market meltdown happened they lost tons of money...well actually they lost tons of their clients money. In the end they went bankrupt, gave back all their leased Lexus and Benzs and walked away.....now they own another similar business. I gaurantee that FAs will risk your money before they will risk their own. As was posted earlier...do your own due diligence.
HI Rob, an advisor can be sued for poor advice, we have significant liability. If I guaranteed an 8% short term return, in a 3.75% environment, you should run like the wind in the other direction. The real problem is tempering return expectation with reality. As for regulatory bodies. Enforcement, oversight and regulatory bodies do exist to protect the investor from rogue advisors, or unscrupulous firms. You also in most cases should be covered by Canadian Investor Protection Fund, in cases of insolvency of the dealer. Furthermore, the regulators do also protect the reputational interests of IA from "rogue" investors that plead complete ignorance when things go wrong. REmember, it's your money and you need to be active in the decision making process. If you don't understand something, question until you do. You also want to make sure you have open discourse with your advisor and they have the time to work with you. You should be open and honest with your objectives, constraints and time horizons. Advice is simply that. It does not pertain to guarantees, but as long as advice is dispensed with fiduciary duty to client in mind, the advisor is generally portected from frivolous attacks.
One more thing, bad advice does not generally breed a successful advisory business. IAs dispensing bad advice or service, will generally not flourish or even survive in the business.
That's pretty much my point. FA is of no value to me. (sorry guys, nothing personal). I try to put 10% away into a mutual fund. If that fund doesn't do well, I move. That's about all I can do. By the way, this talk about the Bank of Canada being owned by the Freemason and ****... that's a bunch of hooey. The governor of the Bank of Canada reports to the minister of finance. It's an independent body (in the same way that AECL is independent until the fired the director... but that's another story) And they don't "create" money when they give a loan. They have to borrow that money from somewhere else. Whether it's the BofC, or investors, foreign governments, etc.
DOW Regarding the DOW OR ANY EQUITY FOR THAT MATTER; at any one point in time, it's prudent to consider the environment you're currently trading in. With respect to the past 10 years, to say an investor is long the market for the coming year means nothing these days. The better part of juvenile optimism will gain you nothing more than a luckily bet. This past year was essentially a write off: http://investdb.theglobeandmail.com/inv ... ting=JDU-T It's essential today's investors act accordingly (as it pertains to the current conditions). That is to say, self discipline will bare more fruit than a comparison to the past 10 years of the DOW. However, I digress and wish to put this thread to bed. To know where you're going, you have to know where you've been. The DOW does in-fact show an "ever-increasing" overall tread the past 10 years (I never said it didn't), but it's UNREALISTIC for investors today to use that as a tool for making rational investment decisions (as such, 10% annual return is an optimistic exaggeration!). Too many factors, over time, contribute to the DOW's 'ever-increasing' trend. Inflation, for example, is the primary conduit! Buy attractive stocks, by all means. However, prepare to cut your losses short - exercise self discipline. Act accordingly and quickly. And do your own due diligence - otherwise gains will be nothing more than lucky bets at that point! Good luck.... but you don't really need it.
My father was forced into early retirement about two years ago when he was 57 yrs old and after 28 yrs service with the same company. He always new that he'd have to work until he was around 62 so this really hurt him bad. He is a licensed Journeyman but he says he's to old to be working outside all summer and winter so he took up a Shift Job.My point is that one will always do what's required to make ends meet. Investing is a risk no matter how you look at it. Planning for the future is also an unknown in my opinion. My thinking is to come up with a plan either on your own if you think your well enough informed or with the help of someone you trust and stick with it. As far what's the right amount to have tucked away? That all depends on what you want to do when you retire and how old you want to be. For some $1M wouldn't be enough but for others who knows? My plans are : -No mortgage by the time I'm 50 (that's alot more money to invest every month for 8 - 15 yrs) -Kids out of the house and done school well before I retire -Indexed pension of 70% my base salary -Sell my house (2500 Sq Ft) and get a smaller less expensive place -Ride off into the sunset with my wife and a new 2500HD Duramax Diesel GMC and Toy Hauler 5th wheel with a couple of bikes in the back of the trailer. Ha Ha I would think that for my wife and I, our living expenses will be alot less when we retire than what they are now but who knows? I sure can't see into any crystal ball. There is a saying and I'm sure everyone has heard it, "Fail to Plan then Plan to Fail". Another thought is that I still want to enjoy my life now. I've got 20 -30 yrs to go until I retire. I'd like retire around 58 but who knows? I might have to work unitl 65. That's way to far down the road to worry about it. One can always make adjustments as required. Cheers and good luck!
Gerry, you have a well thougth out plan for your future. It's nice to see logical thinking in times of plight. Guys, don't get me started on mutual funds vs other lower cost investments. You'll be opening a can of worms at that point. Have a good one.
Sorry, they do. It's called fractional reserve banking The Federal Reserve cites the purpose of fractional reserve banking as follows: 'The fact that banks are required to keep on hand only a fraction of the funds deposited with them is a function of the banking business. Banks borrow funds from their depositors (those with savings) and in turn lend those funds to the banks’ borrowers (those in need of funds). Banks make money by charging borrowers more for a loan (a higher percentage interest rate) than is paid to depositors for use of their money. If banks did not lend out their available funds after meeting their reserve requirements, depositors might have to pay banks to provide safekeeping services for their money. For the economy and the banking system as a whole, the practice of keeping only a fraction of deposits on hand has an important cumulative effect. Referred to as the fractional reserve system, it permits the banking system to “create” money.' http://en.wikipedia.org/wiki/Fractional_reserve_banking The value of the money is the promise of you paying it back, nothing more.
You might be a redneck if you think 'Mutual Funds' means everyone is having a good time! Sorry, I couldn't resist. Cheers!
