Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Chris Worby shares information about the rules of investing.
Rules of Investing - Gotta Know The Rules To Win The Game!
At Worby Wealth Management We are committed to providing a high standard of Investment advice to individuals, families and business owners. Understanding and following certain rules can be helpful when it comes to investing. While investing is not a guaranteed game, adhering to some principles can increase your chances of making informed decisions and achieving your financial goals.
Here are 10 key rules of investing:
- Set clear investment goals: Before you start investing, it’s important to define your investment objectives. Are you investing for retirement, a down payment on a house, or a specific financial milestone? Having clear goals will help shape your investment strategy.
- Diversify your portfolio: Diversification involves spreading your investments across different asset classes, sectors, and geographic regions. By diversifying, you can reduce the impact of any single investment’s performance on your overall portfolio. This helps manage risk and potentially enhance returns.
- Understand your risk tolerance: Assessing your risk tolerance is crucial. Some investments carry higher risks but also offer the potential for higher returns, while others are more conservative. Understanding how much risk you’re comfortable with will guide your asset allocation decisions.
- Do your research: Thorough research is essential before making any investment. Understand the company or investment you’re considering, analyze its financials, evaluate its competitive position, and consider any external factors that could impact its performance. Knowledge is power in investing.
- Take a long-term perspective: Investing is generally a long-term endeavour. While short-term market fluctuations can be unsettling, focusing on the long-term trends and staying invested over time may help smooth out volatility and increase the likelihood of positive returns.
- Avoid emotional decision-making: Emotional decision-making based on short-term market fluctuations can lead to poor investment choices. Try to remain objective and avoid making impulsive decisions driven by fear or greed. Stick to your investment strategy and review it periodically based on your long-term goals.
- Regularly review and rebalance your portfolio: Periodically review your portfolio to ensure it remains aligned with your goals and risk tolerance. Market movements may cause your asset allocation to drift from your target, and rebalancing helps maintain the desired risk-reward profile.
- Consider the impact of fees: Fees and expenses can erode your investment returns over time. Pay attention to the costs associated with the investments you choose, including management fees, expense ratios, and transaction fees. Low-cost investment options may be more favourable in the long run.
- Stay informed and adapt: Keep yourself updated on market trends, economic indicators, and relevant news that could impact your investments. Flexibility and the ability to adapt your strategy as circumstances change are essential in the dynamic world of investing.
- Seek professional advice if needed: Investing can be complex, and seeking advice from a qualified financial advisor can provide valuable insights and guidance tailored to your specific situation. An advisor can help you navigate the intricacies of investing and make well-informed decisions.
Remember, investing involves risk, and there are no foolproof rules or guarantees of success. It’s important to consider your personal circumstances and consult with professionals before making investment decisions.
Contact Worby Wealth Management Regina so we can review your investment needs today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!
The
comments herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice in the context of your
particular circumstances. This Blog was
written, designed and produced by Chris Worby for the
benefit of Chris Worby, a Financial Advisor at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe are reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell securities.
Mutual Funds approved exempt market products and/or exchange-traded
funds are offered through Investia Financial Services Inc.
Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Chris Worby shares information about ESG Investing.
ESG Investing - What it is and is it a good thing to do?
What is ESG?
ESG investing, also known as sustainable investing or socially responsible investing (SRI), is an investment approach that takes into account environmental, social, and governance factors when making investment decisions. It goes beyond traditional financial analysis and considers the impact of a company’s operations on various stakeholders, including employees, customers, communities, and the planet.
The “ESG” acronym represents the following:
- Environmental: This refers to a company’s impact on the environment, such as its carbon footprint, resource usage, pollution levels, and commitment to renewable energy.
- Social: This category focuses on a company’s relationships with its employees, suppliers, customers, and communities. It considers factors such as labour practices, human rights, product safety, diversity and inclusion, and community involvement.
- Governance: Governance relates to a company’s leadership, structure, and policies. It assesses aspects such as board independence, executive compensation, shareholder rights, transparency, and ethics.
ESG investing aims to generate financial returns while also considering the broader impact of investments on society and the environment. It allows investors to align their financial goals with their values and promote positive change.
Whether ESG investing is a good thing to do is subjective and depends on individual perspectives and goals. Here are some points to consider:
- Alignment with values: ESG investing provides an opportunity for individuals and institutions to invest in companies that align with their values and support causes they care about, such as sustainability, social justice, or clean energy.
- Long-term risk management: Companies with strong ESG performance may be better equipped to manage risks and capitalize on emerging opportunities. Assessing ESG factors can provide insights into a company’s resilience, reputation, and potential for long-term success.
- Performance considerations: There is a growing body of evidence suggesting that companies with robust ESG practices can deliver competitive financial performance over the long term. However, it’s important to note that financial returns can vary, and not all ESG investments will outperform traditional investments in every period.
- Impact on society and the environment: ESG investing can encourage companies to adopt more sustainable practices, improve social outcomes, and reduce negative environmental impacts. By directing capital towards responsible companies, investors can potentially contribute to positive change.
- Measurement and transparency challenges: ESG investing faces challenges related to standardization, measurement methodologies, and disclosure practices. It can be difficult to compare and evaluate ESG metrics across companies, which may hinder the effectiveness of investment decisions.
Ultimately, the decision to engage in ESG investing should consider personal values, financial goals, and risk tolerance. Working with a Trusted Regina Wealth Management Advisor who understands sustainable investing can help navigate the complexities of ESG investing and align investment strategies with your individual preferences. Contact Worby Wealth Management Regina so we can review your investment needs today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!
The
comments herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice in the context of your
particular circumstances. This Blog was
written, designed and produced by Chris Worby for the
benefit of Chris Worby, a Financial Advisor at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe are reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell securities.
Mutual Funds approved exempt market products and/or exchange-traded
funds are offered through Investia Financial Services Inc.
John Barabe and Madison Schenher understand that everyone's financial situation is unique and that managing your wealth can be complex and time-consuming. They have has an unwavering commitment to quality and service which has enabled John to build and retain a successful practice in Regina. The team of Regina financial advisors and support staff believe that planning with honesty and integrity are cornerstones to improving their clients' quality of life. They apply their knowledge to help clients make the right choices when considering all the product and service options that exist in today's marketplace. In their latest Regina financial advisors expert article, John Barabe explains why you should work with a financial advisor to manage your wealth.
Why can’t you do your own investing? Well, you can. However, many people do find success employing a professional. Consider this story. Let’s say you make two different investments, each for $1,000,000. You are a long-term investor so you know not to get worked up with fluctuations. Let’s say 1 year later, your one investment (A) is now worth $2,000,000 and your other investment (B) is worth $500,000. You have reached your maximum pain point with B and decide to sell and take the money and buy more A. I believe this is also what most people would do.
My story is of course made up and there are no further details to judge your action. However, most people don’t concern themselves with more details than the historic gain or loss anyway. Let’s now examine the (arguably) most important rule in investing. BUY LOW, SELL HIGH.
By selling B and buying A an investor is actually doing the opposite. Sell low and buy high is not a good practice to follow. When you buy high, you limit your upside and expose yourself to exaggerated downside. The opposite is true when you sell low. When an investment is low, you typically limit downside and potentially exaggerate upside. Doing the opposite will take its toll in the long term.
I have included Buy Low, Sell High in presentations for decades. I felt so strongly about this “#1 RULE” that I hired a lawyer and had it trademarked. To find out more about how you can benefit from our seasoned direction please contact us by email or phone.
I am sending this out as material information to keep everyone informed. This is not a solicitation for any investment. Before making any investment decision, please contact us for professional investment advice through our extensive planning process. This is only meant to provide perspective and update you as best as I can from the extensive ongoing research that we do.
The opinions expressed within this article/communication are those of the Financial Advisor and are not necessarily those of Keybase Financial Group Inc. Any data provided is for illustration purposes only. Clients and prospective clients should always read a product prospectus and fully understand all of the risks associated with the product before purchasing. Any information relating to the discussion of taxation issues is considered to be only general in nature. Clients should seek a qualified tax professional to discuss their specific tax requirements.
Third-party publications are not prepared by Keybase Financial Group Inc. The opinions, estimates and projections contained in the publication are those of the author as of the date indicated and are subject to change without notice. Keybase Financial Group Inc. makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors or omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on the report or its contents. The provision of this publication is not to be construed as an offer to sell or a solicitation for or an offer to buy any securities.
Keybase Financial Group Inc. is a member of the MFDA and is a member of the MFDA IPC.
Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they share details about Registered Retirement Saving Plan (RRSPs).
Registered Retirement Saving Plans (RRSPs)
By Chris Worby - May 2023
A Registered
Retirement Savings Plan (RRSP) is an investment that is registered with the Canada Revenue Agency (CRA) which allows for the deferring of taxes owed on the money contributed and any investment income
earned until future years when the funds are withdrawn.
RRSP Contributions
The money you
contribute to an RRSP now allows you to reduce the income you pay tax on for
the previous taxation year. 2 months into the next calendar year is the usual
deadline to invest into RRSPs for the previous taxation year. That means January and February is the
perfect time to invest in an RRSP for the previous tax year.
“Wait, did you mean now as in now, or as in now…
eh I’ll get to it soon now?”
That old adage is
never more relevant –
" The best time to invest was 50 years ago… the
second best time to invest is right now! "
The 2022 limit is
$29,210 or 18% of your earned income reported on your 2021 tax return (whichever
is less), minus any employer-sponsored pension plan contribution, plus any
unused contribution room from previous years.
Check your most recent CRA Notice of Assessment (NOA) to determine
your limit.
Age Limits
No minimum contribution age exists, but you must
have earned income reported to CRA. At
Worby Wealth Management, we’ll never promote child labour; regardless, my
children seem to think spending time on Roblox counts as performing a household
chore.
The sooner you start contributing to your RRSP, the
better to take advantage of the power of compounding. Contributions can be
made until you turn 71, when they must be converted to an RRIF, or you must purchase an Annuity.
Investment Choices
Various
investments can be held in an RRSP, including cash, GICs, bonds, mutual funds,
ETFs and individual stocks. However,
before choosing your investment approach, it’s always best to consider Retirement, Tax,
and possibly even Estate issues.
Questions regarding RRSPs?
If you have
questions about account or investment options, contact Worby Wealth Management to get your
questions answered and start investing in an RRSP or other investment accounts
today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!
The
comments herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice in the context of your
particular circumstances. This Blog was
written, designed and produced by Chris Worby for the
benefit of Chris Worby, a Financial Advisor at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe are reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell securities.
Mutual Funds approved exempt market products and/or exchange-traded
funds are offered through Investia Financial Services Inc.
Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they share details about inflation.
Inflation
By Jeremiah Worby - April 2023
Inflation is when you inflate your tires with air. Inflation is also an economic term that
refers to the increase in the price of goods over time. The latter will be the
focus of this article. This increase in
prices can be caused by a variety of factors, including supply and demand as
well as changes in interest rates or government policy. Inflation can make it difficult for people to
plan their finances effectively because they have less purchasing power with
each paycheck.
Break it down for me
Inflation is measured using the consumer price index
(CPI). CPI is a measure of the changes
in the cost of living for consumers, including food, housing, transportation,
healthcare and entertainment. The CPI measures price changes for all urban consumers
by calculating average expenditures for each category.
Supply and Demand
The main factors that cause inflation are supply and
demand.
Supply
and demand are how much of a good or service is available, and how much people
want to buy at any given time. In
economics, there is only so much money in circulation (the supply). People will spend their money on goods and
services, which creates an increased demand for those goods and services – and
therefore an increased price for them.
Hard to Predict
Will Tom Brady be inducted into the Hall of
Fame? Some things are easy to
predict. Inflation is not one of them as
it has a big impact on the economy. When
inflation rises, it's usually because the quantity of money has increased
faster than the goods and services available for purchase. In other words, there is more money available
than there are goods and services in circulation. As a result, companies may raise their prices
in order to maintain profit margins or simply keep up with rising costs
associated with production.
However, if companies raise their prices too much
without enough corresponding demand for their goods and services – or not
enough supply of them – then inflation will decrease as people will buy less
from those companies or stop buying altogether for fear that prices will
continue to increase over time. The
result is often called “stagflation” (a combination of "stagnant"
economic growth coupled with inflation).
Inflation
can also cause decreases in employment or increases in commodity costs such as
food or fuel. This can lead consumers'
purchasing power down while putting pressure on businesses' profits by reducing
demand for products thus increasing unemployment across sectors. For example: If consumers spend less time
driving to go shopping due to rising gas prices, then fewer products will be sold
at grocery stores or department stores which would decrease profits.
Conclusion
Inflation is a
complex topic, and this article only scratches the surface (it will not scratch
that impossible to reach spot on your back).
It’s important to understand how inflation impacts your personal finances,
but it also affects businesses and governments as well. Inflation can be hard to predict and can have
a big impact on the economy. The two
main factors behind inflation are supply and demand. Inflation is generally caused by an economy
growing too quickly and demand for goods outstripping supply.
Questions regarding
inflation?
If you have
questions about inflation or what you can do to fight against it, then contact Worby Wealth Management to get your
questions answered and start investing today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!
The
comments contained herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice, in the context of your
particular circumstances. This Blog was
written, designed and produced by Jeremiah Worby and Chris Worby for the
benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the
date of publication and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell any securities.
Mutual Funds, approved exempt market products and/or exchange traded
funds are offered through Investia Financial Services Inc.