How to make Cent$
in 2019
Listen, closely everyone, I’m going to tell you where to invest and what will make money…. insert silence. Anyone that tries to tell you where to invest with certainty is delusional or telling a tall tale. What we can do is follow some simple rules in an attempt to increase our wealth.
1. Diversify your portfolio
When choosing a portfolio you want something that will reflect the risk you're willing to take and the returns you're looking to receive. It used to be quite simple, of stocks and bonds, if you wanted something more conservative increase the bond. Well with bonds coming off of a 30-year bull market and stocks showing a lot more volatility investors need to branch out. The chart below represents the change in asset mix required to receive 7.5% and how it changed over time. I would suggest we model our investments similar to that of the big pension plans. The key ingredient is private equities. These are investments that typically don’t suffer the same way that stocks and bonds do, they are not correlated to the market and offer returns similar to the stock market. As I write this, the Canada Pension Plan is sitting at roughly 47% percent private equities. What percentage do you have and how is your portfolio designed to provide cash and protection?
2. Pull money out from your
RRSP or RRIF in this tax year.
If you are 65, consider making a withdrawal from your RRIF and taking advantage of the $2,000 federal pension income amount. It may also
at have qualified for the DTC since 2008 may actually lose entitlements after 2018
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By Jason A. DeJean
FCSI®, PFP®, CFP®, CPCA®, EPC®
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