Risk plays a big part in your investment plan. Whether you opt for a more conservative route, or prefer a high-risk, high-growth approach, understanding how risk fits into your portfolio is essential in creating a plan that works for your goals.
Now that the New Year has come and gone, it's time to start thinking about how you are going to improve yourself in 2017. Maybe you want to return to a regular gym habit or start eating healthier, but have you considered making a commitment to improving your finances first?
Last year, regulators announced the Client Relationship Model - Version 2 (CRM2), which included a key requirement that financial advisors explicitly disclose all investment fees charged to clients. The regulation, which went into force in July 2016, is required to be implemented by all financial advisors by January 2017.
The phrase stuck when Tom Brokaw published his 1998 book about the generation that lived through the great depression, fought in World War II, and ushered in an era of productivity, opening the door to the affluence we enjoy today.
Well, they can’t. So let’s clear the air: there are no robots involved in online advice. At Invisor, and at other online investment management companies, we are human financial professionals that leverage technology to make your experience better, faster, and cheaper. In Canada, the online advice industry is continuing to grow, with eleven companies offering online investment management services. You can learn more about them in Rob Carrick’s 2016 robo-advisor guide.
Starting out as an investor can feel overwhelming, espeically when there are so many opinions about the best way to invest. While it may be tempting to listen to your coworker's advice when he talks about 'timing the market,' we promise you this is not a good idea. And if the 'risks of investing' your friend warns you about make you nervous, we can assure you that you have nothing to worry about when you're in it for the long haul.
No matter what age you are, it's always a good idea to start investing. You will always benefit from putting money away, whether it's intended for a purchase that's a couple years away, or for your retirement forty years down the road. While it may be ideal to start saving for retirement early, there is no reason you can't start later in life and still maintain a good nest egg. On a similar note, putting money aside on a new-grad salary will benefit you in the long-term, no matter how much you have to start investing.
If we were to ask you what activity was more fun, planning a trip or planning your investment strategy, we'd bet you would answer with the former. And we don't blame you. Thinking about your next trip, booking hotels, planning an itinerary and packing your suitcase are all fun aspects of getting to your destination.
With the recent release of the CRM2 mandating investment advisors to disclose all investment fees to their clients, there are some questions you should absolutely be asking your advisor to make sure you're working with someone who has your best interest in mind.