by admin | Feb 8, 2015 | Advisor Stream
When I first started out as a financial advisor, twenty years ago, a strategy that was very prominent and recommended by many financial advisors was “borrowing to invest”.
This strategy involves taking out a loan to purchase investments outside of your RRSP. The benefits are that the interest you pay on the loan is tax deductible against your income and as long as you earn a return that is equal to the after tax cost of the loan, you will be successful, and have the ability to dramatically increase your net worth over time.
However, one of the areas that was overlooked, or down played was that when the investment markets go into a big slump as they do from time to time (also known as a bear market) your losses are magnified.
Many people found that they were not emotionally prepared for the ups and downs of this strategy, and as a result this strategy fell out of favour.
Does this strategy still make sense for people today?
My personal opinion is that borrowing to invest can still be a very effective strategy for the investor with the right type of temperament, who understands the risks and the rewards, and has a long term investment horizon.
I encourage you to read the enclosed article-it features comments from Talbot Stevens, who is a highly respected thought leader within the financial community. He was also a guest on our Financially Fit For Life webtalk radio show back in 2014
Click here to listen:to our interview with Talbot Stevens The Smart Debt Coach.
Interview with Talbot Stevens The Smart Debt Coach
I look forward to hearing any comments or questions that you might have.
Cheers,
Coach Mark
When borrowing to invest actually makes sense
Borrowing to invest is always a risky strategy, especially so in a climate like this. The bull market is six years old, and nothing lasts forever. Between March 2009, when Toronto share prices touched bottom, and this week, the main Toronto stock market index has almost doubled. Last week’s interest rate cut may be the first of several. The bank’s message is that a bumpy road lies ahead. But each cut also adds a little more energy to the markets. It makes it cheaper for companies to borrow, which improves their profitability and so lifts share prices. It makes it cheaper for us to borrow to buy stocks. But should we? Yes- borrowing for investments can be a good idea, if you do it right.
Read more here
by admin | Feb 1, 2015 | 52 Week Accountability Challenge
We are now entering week 5 of our Core Conditioning Program Accountability Challenge.
Once again, I encourage you to take 10 minutes to review your Progress over the past week
What is the goal(s) that I am committed to achieving over the next 52 weeks?
- What did I say I was going to do this past week?
- How do I feel about it? Briefly describe your victories or challenges from the past week.
Week 5 Challenge: Take a Quantum Leap:
You have everything you need inside you right now to make a Quantum Leap in 2015. The question is WILL YOU?
“Right now, in this moment, you are capable of exponential improvement in your performance. You can multiply your personal effectiveness, hit new highs, and shatter your old achievement records. The results you can have will be hard to imagine”.
You can become You2”.
These wonderfully encouraging and very powerful words, come right out of one of my favourite books; You2 by Price Pritchett. I believe that we sell ourselves way too short in setting and reaching our goals. We end up settling for results that are well below our true potential.
1. Ignore Conventional Approaches: What one thing will you do differently this week to help you reach your goal?
To make a quantum leap, you’ve got to break out of the rut you’ve been running. This week I want you to try something completely different in pursuit of your goal. It is easy, far too easy to become addicted to our existing habits and methodologies. Perhaps you work out late at lunchtime. This week can you work out first thing in the morning? If you always eat cereal and toast for breakfast, instead treat yourself to a delicious and nutritious protein shake. The key is to break out of your normal routine. Moving to a higher level calls for a fresh perspective, which can actually mean a path of less Resistance.
2. Suspend Disbelief: This week “Act as if” your success is for certain.
Often the major obstacle to achieving the quantum leaps that we are looking for is our own lack of belief that we can make it happen. This week I want to focus on suspending any lingering doubts or disbeliefs that may be floating around in that head of yours. I know they are there, I can feel them myself. Think of an actor when they take on a role. To be really successful, and believable they have to take on all of the characteristics of that role, don’t they? The mannerisms, the thoughts, the physical presence, the subtle nuances. In other words for that role, they become that person. What one thing would you be doing differently if you knew your success was for certain? Pretend you are an actor; take on one characteristic of the person that you desire to become. Go do it now.
Keep Your Core Strong!
Mark Hudon, CFP™, CCS™
Financial Fitness Coach, Certified Cash Flow Specialist™
Creator of The Core Conditioning Program™
Check out our exciting new Website, Radio Show, & Cash Flow Planning tools:
https://financiallyfitforlife.ca/
http://webtalkradio.net/internet-talk-radio/financially-fit-for-life/
http://cashflow-specialist.com/
Thought for the month: ”The important thing in life is not to triumph, but to compete”. Pierre de Coubertin
GP Wealth Management
5045 Orbitor Dr, Building 11, Suite 400
Mississauga, ON L4W 4Y4
Tel: 416-622-9969 x237
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by admin | Feb 1, 2015 | Advisor Stream
Happy Super Bowl Sunday!
One of the areas that I enjoy most writing and speaking about is in the area of goal setting.
It;s actually one of the focal points of my Core Conditioning Program. If you aren’t familiar with it, be sure to check it out at www.coreconditioningprogram.ca.
Experience has taught me that following a successful formula for achieving your most important goals is a challenging area for many people, and one that they need help with.
That’s why I’m always on the look out for helpful resources that can help my clients, contacts & friends to achieve their personal & financial goals by getting to the core of what is most important to them, and ultimately get the most out of their money & their lives.
When it comes to being successful in any part of our lives, it;s our thoughts & actions repeated on a consistent basis until they become habits that determine our success.
Be sure to give this article a read, and help a friend by passing it along to them.
Cheers,
Coach Mark
P.S. For what it’s worth, my prediction for today’s game is Seattle 21 New England 17
The three personal development goals successful people pursue habitually
If you Google “daily habits of successful people” you’ll find almost every business-focused media outlet represented in the results. But if you’re looking for a guaranteed roadmap to success, don’t get excited just yet. If you read all of those articles, or even a few of them, you’ll soon realize that successful people have a wide range of daily habits. So how are any of us supposed to figure out which daily habits are critical to success, and which are personal preference and idiosyncrasy? If you take a look at all the different lists of habits, routines, principles and priorities among successful entrepreneurs you’ll find these three universal success factors.
Read more here
