Investing Like a Pension Fund

Thanks for tuning in to Saturday's show.
 
Tune in this Saturday for Beyond Funds Market Weekly, as I discuss investing like a pension fund.  Most major pension funds move beyond traditional bond and stock investments, and include alternative investments.  Alternative investment classes increase the expected return of a portfolio, while reducing volatility.  Do alternative investment classes fit in your portfolio?

Tune in Saturday at 9:30, and find out.

Next Saturday's Show

Thanks for tuning in to this week's show.  Next Saturday, I will be reviewing another strategy for rebuilding your portfolio after the lost decade.  I will be discussing the use of covered call writing as a way to keep your portfolio growing through challenging market conditions.  Learn how covered call writing is an easy and disciplined way to buy low and sell high.  Very few advisors are talking to their clients about this innovative strategy, so tune in Saturday at 9:30, and find out if it is right for you.

Saturday Morning on AM 980

Tune in to Cheryl Weedmark's show tomorrow AM, and you will hear us discuss my thoughts on Finance Minister Flaherty's announcement regarding changes to mortgage rules in Canada.  At 9:30, tune in to my show, as I discuss the value of having one fun or interesting stock in your portfolio.  Should be an interesting morning!

Add an interesting stock to your portfolio

Tune in this Saturday morning, for Beyond Funds Market Weekly. I have been reviewing ideas for rebuilding your portfolio after the lost decade. Many Canadians own individual stocks in the same major Canadian companies, and there is nothing wrong with that. Your portfolio should likely consist primarily of high quality blue chip equities and bonds. However, I believe it is important to add one or two interesting holdings to your portfolio. By investing in unique companies with significant growth prospects, you may increase your returns, and add excitement to your strategy. Tune in Saturday at 9:30, as I discuss working with an advisor to identify unique growth opportunities.

Today's show

This week, I focused on using ETFs to rebuild your portfolio after the "lost decade."  Just because we have seen dreadful ten year results for equity markets, we should not give up on stocks as a meaningful component of a long term investment strategy.  In fact, equities have outperformed all other major asset classes, over the long term.  For this reason, I feel it is important to disscuss the options available for investing in equity markets.  Larger portfolios have more options; individual stocks and bond positions may be used to achieve proper diversification.  For smaller, or even moderate sized portfolios, diversification is more difficult.  This may drive you to mutual funds.  As I frequently discuss on the show, most mutual funds fail to beat the index against which they are measured.   In fact, much of the excess returns associated with equities over other assets is chewed up by the 2.5% management expense typical of a Canadian mutual fund.

Exchange traded funds typically track an index, and have much lower management costs than an equity mutual fund.  They give diversification at a much lower cost than a mutual fund.  Further, there are many new, specialized funds that offer you exposure to individual sectors,or even bearish feelings about a sector, or the whole market..

Unfortunately, many investors do not get exposed to these alternatives, either because their advisor does not recommend them, or is not licensed to sell them.  If you are looking to discuss your options, visit http://www.jeffwareham.ca/, send me an email, or call me at (519) 963-8019.

ETFs and rebuilding your portfolio

This week, on Beyond Funds Market Weekly, I continue with my series on rebuilding your portfolio after the lost decade. Traditional mutual funds have rarely beaten the return of the market. For that reason, many investors are choosing a low cost alternative, the exchange traded fund, or ETF. ETFs are a great way to get exposure to the market, but not all are created equal. Tune in Saturday at 9:30, as I discuss ETFs as a part of your long term strategy

adding strip bonds to your portfolio

This week on Beyond Funds Market Weekly, I continue my series on rebuilding your portfolio after the lost decade. If you want to invest for the long term, but have an absolute minimum dollar amount you must have at retirement, you should consider adding strip bonds to your portfolio. Buying a strip bond maturing at your retirement target date may be the simplest way to guarantee you meet your goal. Government strip bonds offer a unique combination of security and yield, and you, as an investor, should sit down with an advisor, and explore how you may use them to guarantee the growth of your portfolio. Tune in Saturday at 9:30, and learn more about using strip bonds as a cornerstone of your portfolio.