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“Don’t put all your eggs in one basket.” This is an old saying that remains relevant, especially when it comes to investing.
Diversification is an important strategy that experienced investors swear by. A diversified investment portfolio is less likely to be severely affected by market swings. It can also optimize returns. Since each area of investment reacts differently to the same event, adverse reactions would be offset by positive results that affect your other assets.
The investment landscape during the Covid pandemic demonstrates how important diversification is. Anyone who kept nothing but popular stocks, for example, would have wished that they also had other types of investments like treasury bonds, which would have offset their stock market losses.
It’s not going to be very easy to determine the right mix of investments to get, though. If you want to find the right investment options to include in your portfolio, consider the following tips.
1. Conduct thorough research
Before you make any investment, take a deep look at your entire financial situation, especially if you’ve never made financial plans before.
You wouldn’t make any major purchases, like a car, without first researching various brands and models. The same applies to all forms of investment. Let’s say you want to place most of your life savings in stocks. You have to learn more about the various companies and industries you want to consider investing in.
Although you may be able to reap larger returns with higher-risk investments, such as stocks, it is a good idea to also diversify with lower-risk investments. They may have lower returns, but they are not as risky to keep. Putting all your money in a single class of investments you believe would have high yields is no longer investing but more of gambling. It’s even worse if you are making the selection out of gut feeling.
According to Aaron Keller, an adjunct professor of marketing at the University of St. Thomas, it’s a big red flag when somebody outlines investments but fails to clearly articulate the reasons for placing money in the areas they picked. It’s a fact that some people plow ahead with investing, without conducting thoroughly-planned research.
Try to figure out your goals and risk tolerance. You could tap the services of a financial professional, but you may do it on your own.
2. Get out of your comfort zone
Investing in the same thing over and over, day in and day out makes for safe and predictable investing. However, doing so limits your opportunities for higher returns. Also, while you might feel cozy in putting all your money in safe investments, it is tantamount to being unable to adjust to changing times.
Those who placed a considerable amount of money in airline stocks should know. When the pandemic decimated air travel, stocks of airlines and related businesses plummeted uncontrollably. The same happened with the stocks of restaurants and businesses in the hospitality industry as the lockdowns forced many to temporarily (and some permanently) shut down.
You can’t guarantee anything — except that you’re going to be uncomfortable at different points. And, when you know that, you can decide to start getting out of your comfort zone.
3. Do not dismiss alternative investments because of current low returns or their limited markets
“Inviting multiple potential buyers always leads to competitive bidding that pushes the price of the item higher, enabling auctioneers to maximize their profit,” says Collins, as he compares price movements in the investment market to auctions. “We source and introduce opportunities for our clients to fund the acquisition of undervalued assets. In return, we allocate a share of the profits to our clients after every successful auction,” Collins adds.
Many alternative investment options include buying distressed assets, such as purchasing luxury items such as branded handbags, watches, yachts, paintings, etc. Where through fast sales, these opportunities allow investors to act quickly and gain profits.
Also, it is inexpedient to avoid investing in businesses that appear to have a limited reach. The stocks of companies that specialize in products for the affluent could be among the undervalued investment options you keep ignoring. As the previous two tips say, consider taking risks and getting out of your comfort zone.
4. Take advantage of tech solutions for investing
You don’t need to earn a degree in information technology or become a computer whiz to leverage the benefits of technology in investing.
Tech entrepreneur and business consultant Pritom Das says technology helps in investment strategy when it comes to financial planning, communication, security, and situational awareness. “Innovations have radically democratized investing, making it more transparent and easier to engage in,” Das says.
Also, using the right software tools is advantageous in filtering out information and insights that guide investment decisions. “Before you can make the right deals, you have to know that the opportunities exist. With information overload nowadays, it’s very easy to lose track of important news that might be useful. It’s even possible to miss news that could have a major impact on your portfolio,” Das asserts.
AI-powered investment news aggregation is a great tool to compile useful information that influences investing choices. Likewise, it would be advantageous to have programs that quickly generate graphs and charts or process various data into one easy-to-digest presentation.
There are online platforms designed to aid investors in accessing a wider range of investment types in various classes. These can help you find investments with low or negative correlations to make sure you are not going to have investments that altogether get affected by chain reactions whenever something untoward happens in the market.
Diversification is oft-repeated advice for investors. It is not as straightforward and easy as it sounds, but it is not too difficult to achieve. You just need a knack for sensible research and investing preparation.
Having access to relevant information and updates will guide you to the right stocks, bonds, and other financial instruments that you can invest in. This negative or zero correlation is essential to make sure that your investments will not crash all at once whenever the markets go haywire. Also, research lets you know which investments to get, keep or drop.
There is no guarantee that you’ll hit a jackpot in your investments if you diversify, but it’s necessary to get the facts straight about investing so you could follow through with a well-prepared plan. Also, while diversification does not guarantee against losses, it is a vital component of realizing long-term financial goals by minimizing risks.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
