The financial world promotes many manipulated stats. But where does the truth lie? One of the myths out there is the myth promoted by stock indexes. You know the ones, quoted on your daily news--TSX (Toronto), Dow Jones (New York), S&P 500 (U.S.). The ...
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Financial Truth Amid the Propaganda

The financial world promotes many manipulated stats. But where does the truth lie?

 

One of the myths out there is the myth promoted by stock indexes. You know the ones, quoted on your daily news--TSX (Toronto), Dow Jones (New York), S&P 500 (U.S.). The news appears very good these days--indexes are up substantially over the past year.

BUT, these indexes are manipulated (I know, you're shocked). If you want to know how a market has performed, you need to know how much the entire market has changed (not just a selection of high-performing stocks), over a period of time, compared to inflation. This is the only way that your investments can increase in value.

So, here's a tidbit that you should be aware of: if you take ALL the stocks on the New York stock exchange, and look at their performance: 

THE NEW YORK STOCK EXCHANGE HAS NOT INCREASED OVER THE PAST 13 YEARS!

It has gone up, and gone down, and then gone up again (we call that Volatility), but compared to inflation: nada, zero, bupkus. By the way, Risk is a function of when you can put money in and when you will have to take it out compare with that volatility.

Any financial plan requires planning for reality (including Risk and Volatility), not with puffed up indexes and shiny brochures, which are really marketing tools. 

Have you got a real plan for your financial future that can withstand reality?

      
 
 


The US Financial/Political Debacle: Please Remain Calm

DON"T PANIC!

If you are worrying about the US 'shutdown', or debt ceiling or 'default', don't. The mainstream media understands little how the mechanisms actually work, and all the political posturing leads to the phoney headlines you see. The truth is that the US cannot legally default as long as they have cash in the till. And they will have cash in the till for many years yet, as they take in hundreds of billions monthly (even when 'shut down').

The 14th amendment to the US constitution compels the federal government to pay its debts and interest first. What this means is that if they hit the debt ceiling, they will have to cut government spending, not forego paying debts. Under the current government 'sequester', and with the shutdown, they have already curtailed spending about 15% or so. They will have to scale back another 10% if they hit the debt ceiling. Then they could only spend what was coming in. In your house it's called 'living within our means'. 

If you are really bored and want the info on why Social Security spending will not be halted through these troubles, message me and I"ll give you the goods. But consider that it's similar issues that prevent this.

The key fight is really about discretionary programs (including Obamacare), and using new debt to pay for this. 

NOW KEEP CALM AND CARRY ON

      
 
 


Celebrate Canada Day: Learn How to Deduct Your Mortgage!

We have just completed a set of 4 videos on the process for deducting your mortgage interest costs in Canada. Doing so can pay your home off many years sooner.

  1. Introduction: http://bit.ly/MGDeduct1
  2. Part 1: http://bit.ly/MGDeduct2
  3. Part 2: http://bit.ly/MGDeduct3
  4. Part 3: http://bit.ly/MGDeduct4

We live in a great country, and for many people home ownership is one of the great opportunities and freedoms we have. But how can we all enjoy this opportunity without living poor or going broke?

No, this is not too good to be true, thousands of Canadian families have been doing this for 30 years and more. All it takes is some planning to set it up correctly. At MacBeth Group we are now focusing on helping our clients to set this up.

There are better ways to pay your mortgage! Using a conventional approach, you will have to pay Double, Triple, or MORE than the amount you borrow. Learn how to dramatically reduce your interest costs and taxes, and pay your home off years sooner. All using the same cash flow you are now.

Contact us for more information. If you don't have the time or inclination to watch the videos, drop us an email or give us a call and we'll be happy to give you more information.

If you have friends or family with mortgages, why not share this important information with them, too.

Have a great Canada day to all our clients and friends.

      
 
 


The Way You Calculate Your Retirement Plan Makes All the Difference

A recent article in the Globe and Mail commented on The Dangerous Assumptions in Your Retirement Plan. Some of what was written was correct (you need to understand what is being assumed in your plan), and some was nonsense (when picking an average rate of return on investments you can choose wisely).

Not all retirement calculation tools use a target rate of return, or the also-flawed 'Monte Carlo' simulation. As an advisor, I have tried most tools available, and finally found one based on an entirely different principle.

By 'stress-testing' your retirement savings plan against the sequence of returns that have been experienced historically, we can estimate the probability (likelihood) of having enough money or running out of money.

These tools look at the sequence of returns you would have experienced in each of the 'rolling periods' that have commenced over the past 100 years. This method is called aft-casting. And while it is not perfect either (past performance is not indicative of future returns), I am much more comfortable telling clients that their plan would have achieved their goals in 98 of the past 100 years, than I am saying that if we get x% rate of return you'll be fine.

The problem with picking out a particular average rate of return is that we now know that sequence of returns have a profound effect on retirement. The investment returns in the 5 or so years on either side of retirement have a profound effect on standard of living in retirement.

Budget Notes:

  • $5 billion+ in cuts.

  • Retirement now pushed to age 67.

  • The penny is dead.

  • You will be able to bring more back from the U.S. duty-free: Duty-free cross-border shopping limits rise this summer to $200 for 24-hour trips and $800 for trips of 48 hours or more.

  • Defence budget slashed

If you want any further clarification about how the new Budget might affect you, drop us an email.

Have a great weekend, spring is here (somewhat).

Brad

      
 
 

The Perils of Travel Insurance--CBC Marketplace

The recent episode of CBC's Marketplace highlighted some of the problems in the sale of Travel Medical Insurance and how claims are denied and families ruined financially.

The upshot is that buying Travel Medical Insurance from an unlicensed sales person (usually a travel agent) can be very dangerous for your health and your finances. The complexity of questions on the travel medical application can sometimes make it very difficult for individuals to know how to answer correctly.

The problem is not with the product, but with the applications, and with the sales people. If you're looking for travel medical insurance, we strongly suggest that you purchase from a licensed insurance professional. Most of us are able to offer the coverage you need, but can offer professional expertise when completing the applications to assure that you have the coverage you think you do.

There are also some excellent alternatives to traditional, single-trip insurance, such as term travel insurance.

You wouldn't make travel arrangements through an insurance advisor, why do people buy insurance from non-experts such as travel agents and bank clerks?

Yours in health, wealth, and security,

Brad

      
 
 

Finding Investment Alternatives: Wine, Wisdom, and Wealth 4

Alternative investments offer you an alternative to standard investment products. With a focus on risk-adjusted returns we strive to offer products currently in short supply. One of the key features to Alternative Investments is that they do not rise and fall with stock and bond markets.

Experience has shown that although alternative investment products have the potential for higher risk, on average, inclusion of these types of products potentially can reduce the overall portfolio risk. With a focus on risk-adjusted returns we strive to offer alternative investment products currently in short supply in Canada.

Alternative Investments, now regulated as Exempt Market investments, include Hedge Funds, Limited Partnerships, Real Estate Investment Trusts (REITs), Mortgage Investment Corporations (MICs), Flow-Through Shares (mining and oil), and other products. Many Alternative Investments are RSP and TFSA eligible. Some bring significant tax advantages as well.

Come out for an introduction to four investing alternatives, with our special guest speaker, Ron Lastwika of Quadrexx Asset Management. And of course we will have Okanagan VQA wines and artisinal cheeses.

To secure your spot in this limited-seat event, just let us know by email or telephone that you’re coming.

Thursday, February 16th, 6 PM, at the Laurel Building--BC Wine Museum, Kelowna.

info@macbethgroup.com     (250) 448-4817

      
 
 

Riding the Phoenix Real Estate Comeback: Wine, Wisdom, and Wealth Part 3

If you’ve been thinking, hearing, or wondering about some of the opportunities in the Arizona/Phoenix real estate markets be sure to join us for part three of this informative series. Learn how you can participate in the Phoenix Real Estate market bounce. David Udy, co-founder and Vice-President of Capstone Real Estate Corporation will be featuring their Saguaro 2 Project. And of course we will have Okanagan VQA wines and beautiful cheeses.

To secure your spot in this limited-seat event, just let us know by email or telephone that you’re coming.

Tuesday, February 7th, 6 PM, at the Laurel Building--BC Wine Museum, Kelowna.

info@macbethgroup.com     (250) 448-4817

Why Phoenix Real Estate

  • Exceptional value! Home prices have fallen 40-50%
  • The rental market is booming in Phoenix

Why Invest in Saguaro Series 2

  • Investors receive 6% interest (paid semi-annually) +60% of the net capital appreciation when the homes are sold
  • Professionally managed with a priority payout to investors
  • Participation in a fund of quality single family properties generating rental income
  • RRSP & TFSA eligible
  • A market leader in Phoenix real estate investing
      
 
 

Hassle-Free Rental Property Ownership, Assured Rents--Wine, Widsom, and Wealth

 

Have you wanted to own investment properties, but don't want the headaches that can come with being a landlord? Learn how you can build your wealth and achieve financial independence by including secure, carefully chosen residential real estate in your investment portfolio. Rents assured for 4 years, property management provided, cash-flow positive from day 1.  And you own the property, not just a paper asset.

Next up, on Tuesday, January 31st in the Wine, Widsom, and Wealth series is Vision Investment Properties.

As a reader of Personal Finance for the Rest of Us, you and a guest are invited to attend, at NO COST. All sessions held at the VQA Wine Museum at the Laurel building. Each session includes wine, wine tasting, artisan cheeses, and a special guest Financial Expert.

Information is below, or online at: www.macbethgroup.com

Please register by email: info@macbethgroup.com or by phone: (250) 448-4817

In today’s uncertain economic climate, many investors have seen their faith in stock market-based investments shaken, while the strategic value of owning real estate has become more and more evident. Why? Because in any economy, in any location, there will be tenants in need of housing whether the market is up or down.

Vision Investment Properties can help you make real estate investment decisions now, which will build your wealth over time and create a strong passive income. From providing you with no cost access to our thorough due diligence and in-depth economic and market data, to ensuring we retain a portion of the units in each investment opportunity, we work tirelessly to ensure our property investments perform to projections.

Our approach is designed to take the guess work out of investing in real estate whether you’re an experienced investor or just starting out. There are many clear benefits to investing in residential real estate and with Vision Investment Properties you don’t have to be a landlord to take full advantage of each and every one of them.

      
 
 

Reminder: Pay Your House (and Debts) Off Years Sooner

Just a reminder about tonight's event in the Wine, Wisdom, and Wealth series: Pay Your House (and Debts) Off in Half the Time. 6 PM, and the Laurel Building in Kelowna, in the VQA Wine Shop. Complimentary wine and cheese, and great speakers at each event.

As a subscriber to Personal Finance For the Rest of Us, you and a guest are invited to attend at no cost. We'll be presenting a strategy called by various names: The Smith Maneuver, Tax Deductible Mortgage Plan, among others. Lori Lee from Manulife will be joining us this evening.

Not sure if this is for you? Take our simple test at: http://macbethgroup.com/takethetest.htm

Simply reply to this email to attend tonight's, or other sessions. Details below:

 

Please register by email: info@macbethgroup.com or by phone: (250) 448-4817

Hassle-Free Rental Properties, Guaranteed Rents
Tuesday, January 31st, 6:00 PM

Are you interested in owning rental properties, but don’t want the work, risk, and hassle that often comes with it? What if you could own rental properties without having to be the landlord, and with rents guaranteed for the first 4 years? Cash-flow positive from Day 1! More…

Investment Alternatives
Thursday, February 16th, 6:00 PM

Tired of the turbulence of stocks and mutual funds? A new breed of investments offer you an alternative to standard investment products that do not follow stock indexes. With a focus on risk-adjusted returns we strive to offer products currently in short supply. More…

Pay Your House (and Debts) Off Years Sooner
Monday, January 23rd, 6:00 PM

What If You Could Lower Interest Costs Dramatically, Make Your Mortgage Tax Deductible, and Pay Off Your Debt Faster? Would paying off your debts years sooner change retirement? More…

Benefit From the Arizona Real Estate Rebound
Tuesday, February 7th, 6:00 PM

With a population of over 5 million people, and with over 50, 000 people flooding into the city each year, Phoenix is currently offering some of the best real estate investment opportunities you can find. Come find out how you can take part in this rare opportunity. More…

 

 

      
 
 

Wine, Wisdom, and Wealth can be yours...

Once again we are offering our highly succesful series: Wine, Wisdom, and Wealth.

As a reader of Personal Finance for the Rest of Us, you and a guest are invited to attend, at NO COST.

All sessions held at the VQA Wine Museum at the Laurel building. Each session includes wine, wine tasting, artisan cheeses, and a special guest Financial Expert.

Information is below, or online at: www.macbethgroup.com

Please register by email: info@macbethgroup.com or by phone: (250) 448-4817

Hassle-Free Rental Properties, Guaranteed Rents
Tuesday, January 31st, 6:00 PM

Are you interested in owning rental properties, but don’t want the work, risk, and hassle that often comes with it? What if you could own rental properties without having to be the landlord, and with rents guaranteed for the first 4 years? Cash-flow positive from Day 1! More…

Investment Alternatives
Thursday, February 16th, 6:00 PM

Tired of the turbulence of stocks and mutual funds? A new breed of investments offer you an alternative to standard investment products that do not follow stock indexes. With a focus on risk-adjusted returns we strive to offer products currently in short supply. More…

Pay Your House (and Debts) Off Years Sooner
Monday, January 23rd, 6:00 PM

What If You Could Lower Interest Costs Dramatically, Make Your Mortgage Tax Deductible, and Pay Off Your Debt Faster? Would paying off your debts years sooner change retirement? More…

Benefitt From the Arizona Real Estate Rebound
Tuesday, February 7th, 6:00 PM

With a population of over 5 million people, and with over 50, 000 people flooding into the city each year, Phoenix is currently offering some of the best real estate investment opportunities you can find. Come find out how you can take part in this rare opportunity. More…

 

      
 
 

Come Out and Meet Jeff Parent, Personal Portfolio Manager--Wine, Wisdom, and Wealth

Are you happy with your current investment results? Private Portfolio Management might be for you.

On Thursday, October 20th, come out and hear from Jeff Parent, Quadrexx' in-house Portfolio Manager, and one of Canada's top technical investment analysts. Jeff is a frequent contributor on Business News Network in Canada.

Just drop me an email to let me know that you are coming.

This fourth event  in our Wine, Wisdom, and Wealth series includes  wine, wine tasting, and great appys. Start time is 6 PM, at the VQA Wine Shop in the Laurel Packinghouse, 1304 Ellis St., Kelowna.

Get Jeff's expertise working for you. Our private portfolio managers use quality fundamental data and our proprietary method and expert technical analysis to create your personal portfolio. 

The method we use is simple and effective. Our team has a combined financial industry experience of over sixty years. We have a wide depth of experience and training within our team of investment professionals. In addition to portfolio management, our principals have backgrounds in management, accounting, engineering, computer modeling, and quantitative, fundamental and technical analysis. We are strongly committed to professionalism, creativity, and integrity.

We believe there are always income and growth opportunities in the markets.

We believe a strong discipline can help to reduce volatility and improve returns. 

We believe that markets do not always go up and a buy and hold approach is not the best strategy.

      
 
 

Investment Alternatives are Calling

The bad news continues to pour in for conventional investments, whether stocks or mutual funds:

At MacBeth Group we have spent 2 years now researching and implementing investment alternatives to the current market chaos. On Thursday evening, October 6th at 6:30 PM, please join us for Wine, Wisdom, and Wealth as we look at the world of Alternative Investments. This event is held at the VQA Wine Store in the Laurel building.

Alternative Investments are investments that do not follow the stock market ups and downs. Ron Lastwika, from Quadrexx Asset Management will be speaking on the newly formed market for these investments in Canada while we look at a number of specific investments. This will be a great introduction and information session, with good food and wine, and no selling.

As readers of this newsletter you are invited to join us at no cost. Just please drop us an email or give us a call to let us know that you are coming. All the information is here:
http://macbethgroup.com/blog/alternative-investments/

 

      
 
 

 

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