Monthly Archives: May 2016

Don’t Buy a Home … Part 4: Diversification

I would be a poor financial planner indeed if I suggested a client invest 100% of their net worth in one mutual fund that invested in a tiny portion of the world economy in one particular industry. I always ensure my client have an appropriate exposure to global markets, different industries and the right balance between stocks and fixed-income investments like bonds or more simply: diversification.
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Don’t Buy a Home … Part 3: Leveraged Investing

Every time I get a new client or update the information on a current one I have to provide a disclosure about leveraged investing, even if I’m not suggesting leveraged investing as a strategy! This is because borrowing money to invest carries extra risks.
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Don’t Buy a Home … Part 2: Past Performance

Whenever a mutual fund in Canada advertises, I seem to see this phrase in their disclosures: “Past performance may not be repeated.” Or often, I see “Past performance does not guarantee future performance.” This is a key point: just because an investment performed well in the past is no proof that it will continue to do so down the road. The same might apply to real estate. It has been magical couple of decades for real estate in Canada, especially for Vancouver real estate.
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Don’t Buy a Home … Part 1

Don't Buy a Home. Do I have your attention? Okay, now that I’ve brought up real estate, one of Vancouver’s favourite and most hot button issues, let me say that I’m not against home ownership. It's a traditional dream and the received wisdom says it's better than renting in the long term, but that's not always the case.
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