Solutions for your future needs.

Book a meeting

(519) 637-8466

How Do I Become Money YZ?

How do I become money

"The art is not in making money, but in keeping it." - Proverb.

Fear and Greed are two of the most important factors to consider when investing our finances. Common sense tells us that we should “buy low and sell high” but the human brain has a natural tendency to become overly optimistic and overly pessimistic at the worst of times and all to often we find ourselves “buying high and selling low”. Since it is nearly impossible to manage these emotions on a conscious level, it is paramount that a process is developed to help us manage these destructive habits.

By gaining a basic understanding of the major asset types, we can then see how best to allocate our financial resources based on our individual risk profile. Once our individual risk profile has been established, we can then begin the process of determining which asset type fits best within each investment account and also consider how best to manage these accounts to minimize the taxes we pay.

The major Account types consist of Registered, Non-registered (Open Accounts), Tax Free Savings Accounts and Registered Education Savings Plans. The major Asset types consist of Safety, Income and Growth.

Safety – these types of assets are best suited for short-term stability and the primary objective is preservation of capital. Generally, these assets are not intended to produce long-term growth and should be the assets that are use first to draw down for short term needs. Typical safety assets would include Bank accounts, Short Term GIC's, T-Bills, & Short-Term bonds

Income – these types of assets are best suited for producing income and potential for growth of capital. Generally, these assets will be affected by current interest rates and may fluctuate over time. These assets will produce income that can be use to replenish Safety assets. Typical Income assets would include Annuities, Long Term GIC's, Bonds, Mortgages, and Pensions.

Growth – these types of assets are best suited for long term appreciation of capital. These assets can fluctuate significantly from year to year and do not tend to produce income. In positive years, any growth is best used to replenish safety or income assets. In years when there are declines, safety and income assets could be redeployed to growth if sufficient values are maintained and opportunities appear. Typical Growth assets would include Domestic and Foreign Company Stock, Real Estate, and Commodities.



Book a meeting Tell a friend Subscribe

Mutual funds provided through FundEX Investments Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual Funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated.

Financium.getAdvisorInfo()=miss Financium.getPage()=miss Financium.getPage()=miss Financium.getPage()=miss