Hey Lou,
I have a nice amount of cash sitting in GIC’s and it’s been there for a couple of years earning, as you know little interest. I love the security of cash but do you think I am losing out by not investing this money in something else. Is there anything else that I would think is safe?JM
Hi JM,
I get a lot of investors asking the same type of question and I think that what is most important to all investors is to know your own self. I have a power point presentation that I developed for the Financial Forum in 2008 called “The 7 Steps to Successful Investing” that I would be happy to send you or any reader that is interested. Just send me an email.
The core of the presentation is that it can be so destructive to your capital to go against your basic investor profile. If you have built up a nice bag of dough in guaranteed income certificates it says that you are have a degree of risk aversion. You have chosen reduced income for reduced risk. There is absolutely nothing wrong with that. You have made a decision based on your central investor profile.
When you chose lower returns for reduced risk there will always be potential better returns somewhere else in the investing universe but for the most part you will have to assume greater risk to achieve higher returns. Before you make any decisions on where to investment your nest egg ask yourself are you prepared to take on greater risk for potential greater reward.
And lets not look down on the returns offered by GIC’s. They did better than many portfolios in the last while because they achieved one of the most important goals of investing. Preservation of Capital! You didn’t make a ton but you didn’t lose a ton either.
One thing you should know about GIC’s is how they are made. Banks buy portfolios of bonds – mostly Government of Canada issues that generate a certain rate of interest. They then slice those portfolio of bonds up into GIC’s and keep a piece of the income for themselves. You could achieve better results on your investments without increasing your risk by owning the bonds yourself.
Be true to yourself and if you are really ready to change your investor profile make sure to undertake a course of study so that you are fully prepared for the experience.
Happy Capitalism!
Hi Lou,
I would love to receive your power point presentation mentioned above.
Thanks,
Sandra
Hi Lou,
I listen to you every morning Monday to Friday on AM 640, I really enjoy your commentary,very interesting. I would also would like to receive your power point presentation. Thank-you. Brian Abery.
P.S. could you also send me some information regarding the rooofing company you are dealing with. I beleive its called Lyons Roofing, ( not sure on the proper spelling) I would like to invest some in money in this venture. Thanks again.
Hi Lou,
I always catch you on AM640 around 8.50am everyday! Can you please send me the presentation mentioned in this article?
Thanks,
Malay
Kindly send me the presentation, 7 steps to successful investing.
I am opening an investors edge accoutn with CIBC and planning to start my savings in stocks (TSX and NYSE). I am willing to take risk for rewards and above all, control over my investments through self directed investing. Of course i will listen to investor experts like urself to make well educated investments.
Is there a good website to learn basics of investment market such as terminolgies commonly used etc.
Cheers
Good evening Lou.
I would greatly appreciate receiving “The 7 Steps to Successful Investing” powerpoint from you. I always appreciate advice from those wiser than me.
Take care, Peter
Hi, Lou, longtime listener to your spots on AM640
Would greatly appreciate a copy of your powerpoint presentation.
hi Lou, love you talk show in the morning. I would love to have a copy of your powerpoint presentation
Lou,
Could you please send me the 7 steps to sucessful investing. Thanx and enjoy your banter with John each morning.
Please send me the seven steps to successful investing. What does MACD stand for? Is there any interpretations for investing jargons?
Thanks very much for your support
Merwan
Lou….Please send me the seven steps to successful investing. I love you’re enthusiasm! I enjoy the commentaries with you and Johnny. Helps soothe the commute.
Hi Lou. Could you please send me the seven steps to successful investing? I enjoy your columns and would love to learn more.
Thank-you,
Jocelyn
Hi Lou – enjoy your daily commentaries! Please send me the seven steps to successful investing. With thanks,
Gail
Hi Lou.
I don’t visit this site very often but I do look forward to listening to your your commentaries on the radio. As for your site, I’m not a frequent visitor but I keep on coming back. Please send “The 7 Steps to Successful Investing”.
Thanks.
Ken.
Hi Lou
Please send me “The 7 Steps to Sucessful Investing”. I really enjoy listening to you on the radio.
Thanks
Cheryl
Hi Lou,
Love your comments when it comes to persional finances and about capitalism.
Could you please send me the “7 steps to successful investing” presentation”.
Thanks,
Rogelio
What gives…everyone too cheap to buy a book….
Hey Lou,
When you get a chance I wouldn’t mind having a look at that powerpoint presentation. Thanks