Before You Buy Your RRSPs This Year, Check Out Our Returns
Last year was another strong year for our clients with robust returns from the following areas.
Asian Pacific led the way as both China and Japan had very healthy years and are expected to do the same again this year.
The annual return last year in this area was 27.1%. After only one week these funds are leading the way again up 2.71%. Do not miss out on this market.
For our clients that spent $300 monthly on a loan of $100,000 the total return on this investment would have been $27,100 vs the $3,600 paid for the interest only loan,which again is also 100% tax deductible.
If you want your money to grow, this is the fastest way to do it.
Every one of you, reading this now could have made this return for yourself last year.
You could even use your existing RRSPs to fund this and eliminate the tax on the withdrawal with the above mentioned corresponding tax deduction and then roll over a portion of those profits to buy your next RRSP’s for free if you consider that this all started with your original RRSP’s and you save taxes now.
The Emerging Market funds that include India also had a strong year with 23.95%.
The NASDAQ came in at 20.31%and has been very steady for the last 6 years averaging over 22% during that time period.
Which means you would have doubled your money in less than 5 years because of the compounding. Try doing that where you invest your money today. For those conservative investors try the Global Dividend fund that returned 21%,12% over the last year and has also averaged 15.41% over the last 5 years. Not bad for an income producing fund which is great for RRIF and LIF type of investments giving you a much higher income to live more comfortably.
So what do I see for the markets this year?
The Corporate Tax cuts in the U.S.A is the big one because these cuts go right to the bottom line. Which in turn gives these big companies more money to pay out higher dividends.
Higher dividends attract more investors and these stocks will go up.
These tax cut effects will not really start hitting the markets until after they have been seen on the balance sheets, which start to show up in March. This will boost the stock market then and continue until June’s financial results come in.
Some time this summer England will face BREXIT again. But this time with the current government crumbling and more knowledge on the results of what the costs are to leave the European Union. Two years ago I predicted that no PRIME MINISTER wants to be in power if it means Scotland and Ireland leave the UK. After centuries of going to war together as far back as the MEDIEVIL days of the 100 year war with France. How would you like to be known as the Prime minister that let this happen.
So a new government means” new vote “. But this time it will be “we want to stay”.
This will create a sling shot effect in the European markets which in turn will run hot every where else.
However if this market gets too frothy prepare your self for a healthy correction in the fall, followed by another slingshot to even higher returns. The main concern here is that the last time a crash happened was 2008, that’s ten years ago. Crashes usually happen after a long period of growth.
With a tax cut and Brexit reversal this year and the whole world in unison on an improving GDP there is no way this market is not going to climb.
If it climbs too fast the pressure will be on to take profits by the big three who control 80% of the markets. Who are those big three? They are Corporations,Mutual fund companies and Pension Funds. They always make their changes in SEPT/OCT.
2015 saw a smaller correction and we avoided it by moving funds out of stock markets and into our dividend funds. I will be keeping you all informed as the year progresses if we need to do this again.
So your action should be to look at your returns last year and if you did not make 20% why not?
What you should not do is PROCRASTINATE because that is where opportunities are buried.
You have the knowledge right now how to make money. As John Gates once said “If you were born poor it is not your fault.
However if you die poor, it is you fault”.
So let this be the year when you take hold of your finances and start creating wealth for yourself.