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Post by BadCompany on Mar 18, 2008 9:35:43 GMT -5
All right, we got a bunch of financial types on here, including some evil bankers, might as well see if anyone is interested in a financial discussion. What changes have you made to your portfolios, if any? How should I be restructuring my investments in today’s times of turbulence and turmoil? I put aside about 15% of my salary into an RRSP, and my RRSP is broken down approximately as follows:
Canadian Equity: 61%
Canadian “Ethical” funds: 12%
NA Equity: 12%
US Large Cap: 8%
Canadian Growth: 7%
Should I continue to dollar-cost-average, buying equities low? Or should I be moving into more “safer” investment vehicles, like bonds, even though I still have lots of time to recover? I will not be retiring for another 30+ years. Should I go another route completely, like my bedroom mattress? Lottery tickets? Or is this whole discussion pointless given that the world is going to end very shortly, because of global warming?
We’re talking almost $8.50 a month in investments here, I need to know what to do!!!
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Post by Boston_Habs on Mar 18, 2008 9:56:36 GMT -5
I'm among the "evil banker" crowd.....
You seem a tad heavy on Canadian assets, which may not be a bad thing right now, given how the energy sector is performing... but you could consider more global exposure to Europe, Asia, and emerging markets. Look for a good Global fund (typically includes US assets) or International Fund (typically does not include US).... You could also slice and dice by growth vs. income. I love funds with high dividend payout ratios to smooth out the ups and downs of the market. It's a good way to balance out the more growth oriented (and more volatile) stocks and get a solid 6-7% annual return.... Stay away from high yield debt for now - default rates are going up in the near term and leveraged companies are going to suffer the brunt.
Then again, what the hell do I know?
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Post by franko on Mar 18, 2008 10:57:03 GMT -5
Just stay away from anything that I have in my "portfolio" *chokes* and you'll be fine.
Went for Asian markets in the late 80's: tanked. A couple of years later went into the European markets: tanked.
Right now I'm at
47% Balanced
34% CDN equity
18% Global Equity
My wife is laughing wildly as she rolls around the floor pointing -- she's in GICs and outperformed me last year! [I'll get the last laugh -- she'll have to support me!]
I'm in for the mid-long haul -- at least another 15 years . . . so I'm not touching anything and waiting for it to [please please please] bounce back.
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Post by Disgruntled70sHab on Mar 18, 2008 11:25:58 GMT -5
Just stay away from anything that I have in my "portfolio" *chokes* and you'll be fine. Went for Asian markets in the late 80's: tanked. A couple of years later went into the European markets: tanked. Right now I'm at 47% Balanced 34% CDN equity 18% Global Equity My wife is laughing wildly as she rolls around the floor pointing -- she's in GICs and outperformed me last year! [I'll get the last laugh -- she'll have to support me!] I'm in for the mid-long haul -- at least another 15 years . . . so I'm not touching anything and waiting for it to [please please please] bounce back. I was told recently by our financial advisor that anyone in the buying mode right now will be fine. Everything took a hit a few weeks ago but if you're buying you'll make up the difference more quickly. We're in a rather conservative portfolio right now though I don't know how it breaks down. I'd have to check our last prospectus but it's actually doing very well. I put a small sum of money into a high-risk fund around twelve years ago. I lost about 40% of my investment before I transfered it to another fund. I asked one of my then-financial dudes why it was it did so poorly and he tripped around the answer. I got the impression he was using my fund as an experiment and I simply lost, while he learned from it. In the big picture we really didn't lose a lot. But, it was enough for me to move the small amounts we had with him out of his control and into some of the more conservative funds we have now. Soon after I learned that this dude was no longer working securities for Nesbitt Burns. He wasn't even allowed to clean out his desk. Later we received a letter from him asking us to invest in a new company he was starting up. I replied to him with a letter stating that if his interests and ours ever conflicted again I would seek legal action. The last I heard he was selling candles in a mall. For me, losing like this was advantageous in a way. I had a steady job so I could recover from it a lot quicker. Before that, I was more concerned about just getting my tax break. After that, though, I paid attention to where my money was going and how the fund was doing. Cheers. |
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Post by habmeister on Mar 18, 2008 15:02:06 GMT -5
i'm a contrarian investor for the most part. i like to buy stocks when everyone is selling. i don't have mutual funds anymore as i don't like someone dipping into my money and taking a couple of points just to "manage" my money. besides i believe that i should manage my own money, but that's just me. it also depends on your age, whether or not you're risk adverse, when you plan on cashing in your chips. if you're in it for 20 years or more then just keep doing the dollar cost averaging and don't think about it. nobody can really "time the market", but right now it might not be the worst idea to get out, and then buy when you think it's hit rock bottom, but again that would be timing and nobody really knows how low it could go. i tend to look at the big picture, read a couple of books years ago: boom, bust, echo and rich dad, poor dad prophecy. both are centered around the baby boom as they are by far the largest age group and a lot of the markets on our continent will somewhat follow them. there are also emerging countries that are risky but have big upside. i saw this coming years ago, and actually got out of a few of my stocks last summer only to see them plummet 40% within a month, just lucky. my best friend is 35, retired, worth $20mil and he saw the north american market as something that was going to be strong well through 2010 a few years ago. i said i thought that around 07-08 there was going to be a downturn and recession, there was just too much leveraging, credit cards maxing out, mortgages given for free and the list goes on. to me it wasn't a real market, it was pumped up artificially by the US, and now that georgie and co. have gotten their foothold in the middle east and oil production is at it's peak or on the downturn, i think that he's going to leave the office in a full blown recession (buffet said last month the USA was already in a recession) carbon taxes, china becoming the biggest market in the world and consuming more than the USA i see lots of opportunities but not for the average joe who just follows his bankers advice. i'd recommend becoming financially intelligent, get some books and teach yourself, stay away from the bank advisor/salesman and control your own money. but if that scares you then just become a little more diligent in looking at what you have and how much of each you think you should. a bank advisor can ask you to fill out forms, or computer programs can ask you questions, but if you spend a few hours reading and figuring out what you want to do on your own you might tell him/her what YOU want your money in. it feels good to be in total control. After that, though, I paid attention to where my money was going and how the fund was doing. should have read this first, this is exactly what everyone should be doing. but 90% of the popl'n are afraid of money and think that they'll be better off with someone else managing it. but nobody cares about your money as much as you do, it's like hiring a nanny because you don't want to deal with the kids, both money and kids are better off when they're watched closely by you.  |
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Post by habmeister on Mar 18, 2008 15:10:39 GMT -5
another piece of advice, i've found it amusing that some of the most broke people i've met know everything about money (my parents for example). i never take financial advice from anyone that doesn't either A: have more money than me or B: are on a path to have as much or much more money than me.
this includes advisors, those who can't do, teach.
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Post by jkr on Mar 18, 2008 16:02:07 GMT -5
We’re talking almost $8.50 a month in investments here, I need to know what to do!!! I have no advice for you but I thought your last line was really funny. ;D |
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Post by MC Habber on Mar 18, 2008 17:18:52 GMT -5
My only advice is, don't take financial advice from anonymous people on a hockey message board!!
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Post by franko on Mar 18, 2008 18:03:26 GMT -5
My only advice is, don't take financial advice from anonymous people on a hockey message board!! ;D Yup . . . take my advice: don't take my advice! |
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Post by Cranky on Mar 18, 2008 21:44:22 GMT -5
I always invest in real estate in a down turn and hold it long enough until it makes a buck or two. Here is my last real estate venture.....  |
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Post by Skilly on Mar 18, 2008 21:46:28 GMT -5
I always invest in real estate in a down turn and hold it long enough until it makes a buck or two. Here is my last real estate venture..... Looks like my mother in law guest house. ;D |
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Post by Disgruntled70sHab on Mar 18, 2008 21:59:37 GMT -5
I always invest in real estate in a down turn and hold it long enough until it makes a buck or two. Here is my last real estate venture..... LUXURY!! WHYYYY ... WHEN I WAS A YOUNG LAD WE LIVED IN THE MIDDLE OF THE ROAD IN A SHOE BOX WITH 150 OTHER PEOPLE AND HAD TO LICK THE PAVEMENT BEFORE HEADING OFF TO ... Forget about it .... here's my story |
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Post by habmeister on Mar 19, 2008 0:21:39 GMT -5
BTW there is no longer a 30% maximum on foreign stock in your portfolio, so you could probably diversify a bit more globally via mutual funds. you also may want to look into a bond fund or t-bills or gold in this volatile time.
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Post by franko on Mar 19, 2008 7:01:10 GMT -5
How are the people living in the basement faring, HA?
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Post by blny on Mar 19, 2008 7:39:02 GMT -5
I'm just looking to start to get into this. It's really an area of little knowledge for me. At present, I've got information from my rep at CIBC. I'm aware their RRSPs haven't performed that well in the last year or so, but I'm not paying a service fee either. I'm not adverse to allowing a trained professional manage a portfolio for me. I'm not looking for huge risk. I want something that is going to perform well, but be pretty steady. I have a pension I'm contributing to, so this would be more of an addition to my retirement income.
As much as anything, I'm most curious about WHERE and WHO people have invested with. The how can come later.
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Post by BadCompany on Mar 19, 2008 7:44:56 GMT -5
How are the people living in the basement faring, HA? It's not so bad. Cozy, warm, low heating bills. Ceiling leaks though. I'm among the "evil banker" crowd..... You seem a tad heavy on Canadian assets, which may not be a bad thing right now, given how the energy sector is performing... but you could consider more global exposure to Europe, Asia, and emerging markets. Look for a good Global fund (typically includes US assets) or International Fund (typically does not include US).... You could also slice and dice by growth vs. income. I love funds with high dividend payout ratios to smooth out the ups and downs of the market. It's a good way to balance out the more growth oriented (and more volatile) stocks and get a solid 6-7% annual return.... Stay away from high yield debt for now - default rates are going up in the near term and leveraged companies are going to suffer the brunt. Then again, what the hell do I know? Like Franco I get hammered everytime I venture outside of Canada. Our fault when the global economy tanks, I guess. Took a beating in Japan a few years ago, after my financial advisor told me "there is room to grow there." Last time I saw him he was glaring at Disgruntled's former financial advisor, for moving in on his mall candle business. Surprisingly my best performing funds have been my "ethical" funds - who knew? Save the world, make a buck? Made me dump all that stock I had in tobacco companies, weapons manufacturers and Disney. I'm caught between two competing philosophies; the dollar cost averaging philosophy of buying when others are selling, and Warren Buffet's simple yet impossible philosophy of "never lose money on an investment." Thanks Warren, that helps.  In the missed opportunity department I had a chance at getting a new condo development in what was at the time a "blue collar neighborhood" but passed, not knowing too much about real estate. Of course five years later I would have been up about $500,000. Where is that time machine? |
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Post by Skilly on Mar 19, 2008 8:06:38 GMT -5
Don't talk to me about missed opportunities ... I was working with a geological mining company during my second work term. The owner told me he wanted to give me a bonus. So he brought me to the Dept of Mines and Energy, got me to stake a few land claims in Labrador. (who knew that you could stake 10 claims for free if you were a resident? I didnt thats for sure) He told me that he could sell the claims if I wanted him to. So he sold them to a BC company (I believe it was the guy who owned the Lions at the time), I got a quick and dirty $1000. I was broke, and that money was basically "party money" to me. He told me that I should invest the money in a Voisey's Bay company... was even going to bring me down and make sure everything went smoothly. (He also told me I could get my own broker or whatever, but he'd walk me through it). I told him I wasn't sure ..... *sigh* The stock split I don't know how many times.... he is a rich man now. At the time, the stock was less than a dollar. It grew to close to $100 (if not more .. I couldnt bare to watch it anymore). My only investment now are RRSPs ... I only watch them when I get the quarterly statements, and thats for about 2 or 3 weeks and then I stop. Ahhh I dont want to be rich anyway .... what's that old Newfie joke .... something about he refused to claim the lottery money he won because it would shag up his "pogey" (EI) check.   |
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Post by CrocRob on Mar 19, 2008 8:42:55 GMT -5
To be perfectly honest I'm moving some money into US equity. It doesn't have much farther to sink and this is a perfect buy-low opportunity from my perspective. Most of my money, however, is in Canadian commodities and equity, along with a stock portfolio that is pretty rigid (I don't trade much). Real estate is attractive, but I think I should probably.. you know.. buy myself a piece of real estate before I start investing in places that other people live.
Visa just had an IPO, and I bought up a bunch of that. You can always bet that credit card companies are going to make money. Maybe they have a lower shareholder rate for my gold card? I can only hope.
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Post by clear observer on Mar 19, 2008 9:07:14 GMT -5
Study rich folk and DO PRECISELY what they do.
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Post by CrocRob on Mar 19, 2008 9:22:50 GMT -5
Study rich folk and DO PRECISELY what they do. Drive late-model cars and own successful self-started enterprises? Hmm.. I might have to work a bit harder on this one. |
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Post by Disgruntled70sHab on Mar 19, 2008 10:19:50 GMT -5
Don't talk to me about missed opportunities ... Point form. True story no. 1: - Was with the DART Troop at the time and my officer and I went to Ottawa to test and purchase Globalstar Satellite Telephones. Free food and open bar (felt like Homer Simpson)
- Adjourned to the "Bare Fax" afterwards for some, err ... entertainment.
- We were sitting beside a table of "Corel" employees. After a while, and several shooters later, one of them leans over to us and says, "... tomorrow's Friday. If you have anything to invest, do so into "Corel" stock no later than end-business tomorrow."
- Of course he couldn't tell us why that was and, of course, we didn't invest anyway. I mean why would you based on advise given after shooters and beers in a gentlemen's club?
- Tuesday morning my officer comes into my office with an "Ottawa Citizen" and shows me that "Microsoft" injected $200,000 million into "Corel." "Corel" stock went through the roof.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - True story no.2 - Just got posted back to Canada after spending five years in Germany (1991). Had 11 years in the military by then.
- My best friend and I were driving around Kingston looking for business opportunities that would give us another option other than the military.
- So he says to me, "... if we want a real money-maker we should get involved in that ..." (points to a Tim Horton's franchise)
- Says I, "... are you out of your mind? What kind of money is there in coffee and doughnuts? "
Cheers. |
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Post by Disgruntled70sHab on Mar 19, 2008 10:38:06 GMT -5
Last time I saw him he was glaring at Disgruntled's former financial advisor, for moving in on his mall candle business. Can't let this one pass. Sorry for getting serious here. The dude I was referring to was with Nesbitt Burns, yet the majority of my investments were with, yes, Investor's Group. I had a red flag go up with this guy when he "joked" about moving all of my investments under his control. In his words, "... it will be like cutting the knees out from under him (my Investor's representative)..." Why he thought we were displeased with Investor's Group I still can't figure out today. Friends of ours were asked if they wanted to support a new company starting up in the Sudbury area. It was a small recycling business started by a young man who had the attention of several investment representatives. That was back in 1999/2000 and they were asked for $3,000 from their retirement prortfolio. I honestly can't tell what their return is today, but that young man's company isn't as small as it started out. You forgot MTV. Waddaya gonna do? Cheers. |
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Post by habmeister on Mar 19, 2008 12:33:17 GMT -5
Study rich folk and DO PRECISELY what they do. have you read Rich Dad, Poor Dad CO? it lays it all out nice and simple. i'ts the book that myself and two close friends have followed closely and we're all doing pretty well. also rich dad, poor dad guide to investing is even better as it's more in depth. both will pay for themselves 1000 times over. |
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Post by habmeister on Mar 19, 2008 12:36:20 GMT -5
Study rich folk and DO PRECISELY what they do. Drive late-model cars and own successful self-started enterprises? Hmm.. I might have to work a bit harder on this one. actually they just view money differently than 95% of the rest of the population, that is the big difference changing the way you view money. read rich dad, poor dad, i guarantee you'll get something from it. |
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Post by Cranky on Mar 19, 2008 18:44:16 GMT -5
Study rich folk and DO PRECISELY what they do. That's why I study how BC invests his money. Don't let the "$8.50" fool ya, it's missing several zeros. Fer crying out loud, the guy can keep the entire board knee deep in hookers just from his loose change jar. |
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Post by Cranky on Mar 19, 2008 18:48:04 GMT -5
[/li][li]Says I, "... are you out of your mind? What kind of money is there in coffee and doughnuts? " [/list] Cheers. [/quote] It's a 24/7 business. I thought of putting one up in one of my properties but in the end, instead of backing away from working 70 hour weeks, I would be right back into it......and not as profitable as people think. Same thing for McCrap/BurgerKing/etc. ~~~~~~~~~~~~~~ BTW, for four years, I backed away from anything and everything with risk and kept wondering why, not when, but WHY it wasn't bursting. I underestimated the ability of governments and banks to keep the charade going. habsrus.proboards4.com/index.cgi?board=NonHockey&action=display&n=1&thread=12082Anywho.....now I am contemplating of liquidating eveything in Canada and moving to the US. Or if Calgary was 2000 miles south instead of 2000 west, I would be there already. There is going to be a LOT of problems in Ontario and Quebec in the near future. Here is why I think Ontario and Quebec are going to be in trouble. They both have or more correctly, HAD 25% to 30% of they gross domestic product (GDP) in manufacturing. They also have over 50% of their GDP in real estate development. From that, 70% plus is borrowed. So we have half of the economy relying on heavy borrowing money to invest in real estate and a quarter of the economy collapsing. How long before it falls apart? |
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Post by Disgruntled70sHab on Mar 19, 2008 21:24:49 GMT -5
[/li][li]Says I, "... are you out of your mind? What kind of money is there in coffee and doughnuts? " [/list] Cheers. [/quote] It's a 24/7 business. I thought of putting one up in one of my properties but in the end, instead of backing away from working 70 hour weeks, I would be right back into it......and not as profitable as people think. Same thing for McCrap/BurgerKing/etc.[/quote] Right on, HA. I know many people who started successful businesses and had to put in the hours you're suggesting. One such fellow left the service and started a "Subway" franchise. He and his wife were putting in at least 70 hours a week for the first year or so. One day, about two years later, I noticed that he hadn't been around for a while. He had his business doing so well that he hired a full staff to run it while he opened up another franchise ... back to the 70 + hours a week for him. But, he was happy enough. In the past I looked at several business opportunities here in Kingston. Everything from a takeout neighbourhood diner to a nightclub. But, what I learned was that a self-business isn't a job, it's a way of life. And that was asking too much back then. ~~~~~~~~~~~~~~ BTW, for four years, I backed away from anything and everything with risk and kept wondering why, not when, but WHY it wasn't bursting. I underestimated the ability of governments and banks to keep the charade going. habsrus.proboards4.com/index.cgi?board=NonHockey&action=display&n=1&thread=12082We looked at Calgary back in '91. But, we chose Kingston because of friends and family. However, Calgary is, and always seemed to be, the land of opportunity. No problem finding jobs there. We considered BC very briefly. Cheers. |
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Post by Skilly on Mar 19, 2008 21:34:09 GMT -5
Study rich folk and DO PRECISELY what they do. That's why I study how BC invests his money. Don't let the "$8.50" fool ya, it's missing several zeros. Fer crying out loud, the guy can keep the entire board knee deep in hookers just from his loose change jar. hmmm? So he is investing $8.50000000000000000? ;D psssstt that's still $8.50 |
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Post by Cranky on Mar 20, 2008 9:41:06 GMT -5
That's why I study how BC invests his money. Don't let the "$8.50" fool ya, it's missing several zeros. Fer crying out loud, the guy can keep the entire board knee deep in hookers just from his loose change jar. hmmm? So he is investing $8.50000000000000000? ;D psssstt that's still $8.50 Oh for crying out loud, you're helping the slow folks again. What is it with you and your charity to Atari processors like BC and CO? *puts helmet on* |
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Post by BadCompany on Mar 21, 2008 9:04:09 GMT -5
Study rich folk and DO PRECISELY what they do. Lie, cheat and steal? That's why I study how BC invests his money. Don't let the "$8.50" fool ya, it's missing several zeros. That is true... stick them in front of the 8 baby! As an aside, I just won $10 in the lottery! YAY me! I only play like, once every 8 months (tax on the stupid they say, and sometimes I feel like being stupid - no comments please). What's Bre-X trading at these days? I got a good feeling about those guys... |
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