investments | Compass Wealth Partners

investments

When Investment Returns Matter

The goal of financial planning is to build enough assets, by the time you retire, that the income earned from investments (including pensions etc.) will provide you with your desired lifestyle, without the need to get out of bed and go to work.

Simple, right? All other discussions relate to the strategies you can use to build your wealth to the point of Financial Independence or beyond. For true wealth, think about acquiring capital or assets beyond supporting your standard of living.

Planning Ahead During Uncertain Times

As some provinces head into a second COVID-19 lockdown, some people are asking the question: Why bother investing for the long term? For many, especially Millennials, the task of building financial wealth and security looks increasingly hopeless. Even the most prudent small business owners were caught short during the lock down in the spring and many are now facing the prospect of permanently closing their companies.

Put Your Eggs In Many Baskets

When their investment savings plummeted in the 2001 stock market crash, Adam and Sonya were concerned, but not panicked. Retirement was a long way out, so they had plenty of time to recover. The couple decided to try their hand at 'timing the market' (buying and selling stocks based on expected market fluctuations) to recover their losses. "We thought that if we stayed on top things and could chart when the market would go up and down, we could make our money back," says Adam.

The Often Unasked Question

With the December market correction in both the US, Canada and elsewhere slowly receding into the past, it is a good time to review what exactly happened and how clients have reacted to the recent events.

To put December into context, it was the most severe correction late in the year since the early 1930's. The market valuations improved dramatically as a result of the correction with Price\Earnings (P\E) multiplies falling by 5 points, which is the most in about 25 years and has happened only about 5 times in history.

As The World Improves

If your way of assessing the state of the world is only through stories gleaned from the regular media, then you are likely missing out on all the marvelous and wondrous advancements of human society over the previous years and decades.

With news reports during the final months of 2018 focusing on market volatility and US budget problems, it has become very easy for investors to focus their attention mostly on short term and transitory issues.

Putting You in the Picture

It is that time of year again when thoughts turn to how the world and the investment markets may run into trouble: markets are at record levels, interest rates are rising, Trump, Trump and more Trump, trade deals, China, the end of globalization, inflation is rising, inflation is a non-factor….well you get the drift. You can pick any number of reasons to be nervous but the reality for most people is these macro-economic factors have little bearing on your personal situation.

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