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Football star finds a home in the investment industry – The Globe and Mail

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Winnipeg Blue Bombers’ Adam Bighill celebrates winning the Grey Cup on Nov. 24, 2019. When not playing football, he’s an investment advisor at Wellington-Altus Private Wealth. THE CANADIAN PRESS/Todd Korol

Todd Korol/The Canadian Press

Adam Bighill rises at 4:45 a.m. most days – and it’s not just to prepare for the coming season as a linebacker for the Grey Cup champion Winnipeg Blue Bombers. He’s also answering client e-mails and poring over financial news.

Besides being one the Canadian Football League’s (CFL) more accomplished defensive players, Mr. Bighill is also an investment advisor.

“This will be my career post-football, and for me to start building it now is important,” says the 31-year-old, married father of three young children.

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Mr. Bighill has had an illustrious football career. The 10-year veteran has been awarded the CFL’s Most Outstanding Defensive Player twice and has also won the Grey Cup two times.

Now, Mr. Bighill has also joined another exclusive group of CFLers – those working in the investment industry. Hired last year as an advisor at one of Canada’s fastest-growing, independent investment dealers, Wellington-Altus Private Wealth Inc., Mr. Bighill is distinctive even in this respect.

That’s because most CFLers who joined the industry did so after their playing careers ended. Yet, Mr. Bighill has no intention of retiring from football anytime soon. In fact, he signed a three-year, $750,000 extension with Winnipeg last year. Rather, he plans on doing both for as long as possible.

Although football and managing other people’s money seem like an unlikely match, pro athletes’ skill sets often transfer well, says Charlie Spiring, founder, senior investment advisor and chairman of Wellington-Altus Holdings Inc.

“Some people label them ‘dumb jocks,’” says Mr. Spiring, adding that they’re anything but. “[Mr. Bighill] is very intelligent and one of those guys who had to work harder than others.”

Certainly, Mr. Bighill is very familiar with herculean workloads.

“To be a professional athlete, the amount of hard work and dedication you put into your craft is elite. So, what I do on a daily basis is normal to me, even if it’s not for most,” he says.

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That same work ethic and passion were applied to his interest in investing after a disappointing experience working with an advisor early in his CFL career. He started managing his own money and enjoyed it so much he took the Canadian Securities Course.

“Then, it was like, ‘Okay, I’m definitely passionate about this … so let’s turn this into an opportunity.’”

Mr. Bighill is following the path of many CFLers before him who have forged successful careers in wealth management. That includes the league’s commissioner, Randy Ambrosie, who played nine seasons before building a successful career in the industry, most recently as president of AGF Management Ltd.

Yet, few have done both at the same time. Mike Philbrick, president and portfolio manager at ReSolve Asset Management in Toronto, is one of them.

He began his football career on the practice roster. “So, my schedule and income were a little light,” he says, adding that CFLers frequently work side jobs.

Over 11 seasons, Mr. Philbrick worked his way through the investment industry while becoming a fearsome defender on the field. He knows the challenges of balancing both jobs well, including long hours before and after games managing accounts and taking client calls.

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The effort was worth his while, he adds. “You get to that point where you have to make a hard decision between two great options.”

Mr. Philbrick chose to retire from the CFL and continue in the investment industry, but the skills learned on the field remained useful.

“Sports is a metaphor for life condensed into much quicker feedback loops, which enhance your ability to learn valuable skills,” he says.

That’s because mistakes are called out, so you’re forced to learn from the criticism and make the necessary adjustments to be successful. “And that’s a super power in this industry,” he says.

John Rothwell vice-president, national business development at National Bank Financial Wealth Management, played in the CFL briefly after being drafted in 1977. He says adversity – including rejection by prospective clients and losing existing ones – is commonplace in wealth management. So, the resilience learned playing sports comes in handy.

Football is particularly “brutal,” he adds. Players sacrifice their bodies; injury and extreme pain are commonplace. But the investment industry can be just as bruising – without physical injuries.

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So many aspect are beyond one’s control, volatile markets chief among them, and so both vocations takes a special individual, Mr. Rothwell says. “Adam is the real deal.”

Mr. Spiring thinks so, too, noting that Mr. Bighill is working alongside veteran advisor Rica Guenther in order to learn and manage the workload of both professions.

A proverbial team player, Mr. Bighill is thankful for the help. “What does a client do when they need something and I’m on the field? Well, Rica’s there to handle those needs,” he says.

As well, Ms. Guenther guides him through the complicated back-end administrative aspects of the business. Fortunately, football made him a quick study.

“Most of what I do is analytical … studying your opponent … breaking it down into fine details,” he says.

Of course, the investment industry also involves plenty of salesmanship, so some name recognition doesn’t hurt when trying to win over clients, Mr. Spiring says.

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“There’s no question we’re parlaying his name and the Blue Bombers’ recent Grey Cup win,” he says.

Still, Mr. Bighill says that only gets him so far.

“People don’t just hand you money for being a football player, but it gives you a chance to get in the door and explain why you can create value,” he says.

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Taxes should not wag the tail of the investment dog, but that’s what Trudeau wants

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Kim Moody: Ottawa is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan

The Canadian federal budget has been out for a week, which is plenty of time to absorb just how terrible it is.

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The problems start with weak fiscal policy, excessive spending and growing public-debt charges estimated to be $54.1 billion for the upcoming year. That is more than $1 billion per week that Canadians are paying for things that have no societal benefit.

Next, the budget clearly illustrates this government’s continued weak taxation policies, two of which it apparently believes  are good for entrepreneurs. But the proposed $2-million Canadian Entrepreneurs Incentive (CEI) and $10-million capital gains exemption for transfers to an employee ownership trust (EOT) are both laughable.

Why? Well, for the CEI, virtually every entrepreneurial industry (except technology) is not eligible. If you happen to be in an industry that qualifies, the $2-million exemption comes with a long, stringent list of criteria (which will be very difficult for most entrepreneurs to qualify for) and it is phased in over a 10-year period of $200,000 per year.

For transfers to EOTs, an entrepreneur must give up complete legal and factual control to be eligible for the $10-million exemption, even though the EOT will likely pay the entrepreneur out of future profits. The commercial risk associated with such a transfer is likely too great for most entrepreneurs to accept.

Capital gains tax hike

But the budget’s highlight proposal was the capital gains inclusion rate increase to 66.7 per cent from 50 per cent for dispositions effective after June 24, 2024. The proposal includes a 50 per cent inclusion rate on the first $250,000 of annual capital gains for individuals, but not for corporations and trusts. Oh, those evil corporations and trusts.

There is a lot wrong with this proposed policy. The first is that by not putting individuals, corporations and trusts on the same taxation footing for capital gains taxation, the foundational principle of integration (the idea that the corporate and individual tax systems should be indifferent to whether an investment is held in a corporation or directly by the taxpayer) is completely thrown out the window. This is wrong.

Some economists have come out in strong favour of the proposal, mainly because of equity arguments (a buck is a buck), but such arguments ignore the real world of investing where investors look at overall risk, liquidity and the time value of money.

If capital gains are taxed at a rate approaching wage taxation rates, why would entrepreneurs and investors want to risk their capital when such investments might be illiquid for a long period of time and be highly risky?

They will seek greener pastures for their investment dollars and they already are. I’ve been fielding a tremendous number of questions from investors over the past week and I’d invite those academics and economists who support the increased inclusion rate to come live in my shoes for a day to see how the theoretical world of equity and behaviour collide. It’s not good and it certainly does nothing to help Canada’s obvious productivity challenges.

Of course, there has been the usual chatter encouraging such people to leave (“don’t let the door hit you on the way out,” some say) from those who don’t understand basic economics and taxation policy, but these cheerleaders should be careful what they wish for. The loss of successful Canadians and their investment dollars affects all of us in a very negative way.

The government messaging around this tax proposal has many people upset, including me. Specifically, it is the following paragraph in the budget documents that many supporters are parroting that is upsetting:

“Next year, 28.5 million Canadians are not expected to have any capital gains income, and 3 million are expected to earn capital gains below the $250,000 annual threshold. Only 0.13 per cent of Canadians with an average income of $1.4 million are expected to pay more personal income tax on their capital gains in any given year. As a result of this, for 99.87 per cent of Canadians, personal income taxes on capital gains will not increase.” (This is supposedly about 40,000 taxpayers.)

Bluntly, this is garbage. It outright ignores several facts.

For one thing, there are hundreds of thousands of private corporations owned and controlled by Canadian resident individuals. Those corporations will be subject to the increased capital gains inclusion rate with no $250,000 annual phase-in. Because of the way passive income is taxed in these Canadian-controlled private corporations, the increased tax load on realized capital gains will be felt by individual shareholders on the dividend distribution required to recover certain refundable corporate taxes.

Furthermore, public corporations that have capital gains will pay tax at a higher inclusion rate and this results in higher corporate tax, which means decreased amounts are available to be paid out as dividends to individual shareholders (including those held by individuals’ pensions).

The budget documents simply measured the number of corporations that reported capital gains in recent years and said it is 12.6 per cent of all corporations. That measurement is shallow and not the whole story, as described above.

Tax hit for cottages

There are also millions of Canadians who hold a second real estate property, either a cottage-type and/or rental property. Those properties will eventually be sold, with the probability that the gain will exceed the $250,000 threshold.

Upon death, an individual will often have their largest capital gains realized as a result of deemed dispositions that occur immediately prior to death. This will have the distinct possibility of capital gains that exceed $250,000.

And people who become non-residents of Canada — and that is increasing rapidly — have deemed dispositions of their assets (with some exceptions). They will face the distinct possibility that such gains will be more than $250,000.

The politics around the capital gains inclusion rate increase are pretty obvious. The government is planning for Canadian taxpayers to crystallize their inherent gains prior to the implementation date, especially corporations that will not have a $250,000 annual lower inclusion rate. For the current year, the government is projecting a $4.9-billion tax take. But next year, it dramatically drops to an estimated $1.3 billion.

This is a ridiculous way to shield the government’s tremendous spending and try to make them look like they are holding the line on their out-of-control deficits. The government is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan.

There’s an old saying that tax should not wag the tail of the investment dog, but that is exactly what the government is encouraging Canadians to do in the name of raising short-term taxation revenues. It is simply wrong.

I hope the government has some second sober thoughts about the capital gains proposal, but I’m not holding my breath.

 

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Everton search for investment to complete 777 deal – BBC.com

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Everton are searching for third-party investment in order to push through a protracted takeover by 777 Partners.

The Miami-based firm agreed a deal to buy the Toffees from majority owner Farhad Moshiri in September, but are yet to gain approval from the Premier League.

On Monday, Bloomberg reported the club’s main financial adviser Deloitte has been seeking fresh funding from sports-focused investors and lenders to get 777’s deal over the line.

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BBC Sport has been told this is “standard practice contingency planning” and the process may identify other potential lenders to 777.

Sources close to British-Iranian businessman Moshiri have told BBC Sport they remain “working on completing the deal with 777”.

It is understood there are no other parties waiting in the wings to takeover should the takeover fall through and the focus is fully on 777.

The Americans have so far loaned £180m to Everton for day-to-day operational costs, which will be turned into equity once the deal is completed, but repaying money owed to MSP Sports Capital, whose deal collapsed in August, remains a stumbling block.

777 says it can stump up the £158m that is owed to MSP Sports Capital and once that is settled, it is felt the deal should be completed soon after.

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Warren Buffett Predicts 'Bad Ending' for Bitcoin — Is It a Doomed Investment? – Yahoo Finance

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Currently sitting in sixth on Forbes’ Real-Time Billionaires List, Berkshire Hathaway co-founder, chairman and CEO Warren Buffett is a first-rate example of an investor who stuck to his core financial beliefs early in life to become not only a success but a once-in-a-lifetime inspiration to those who followed in his footsteps.

One of the most trusted investors for decades, the 93-year-old Buffett isn’t shy to pontificate on his investment philosophy, which is centered around value investing, buying stocks at less than their intrinsic value and holding them for the long term.

Read Next: Warren Buffett: 6 Best Pieces of Money Advice for the Middle Class
Find Out: 5 Genius Things All Wealthy People Do With Their Money

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He’s also quite vocal on investments he deems worthless. And one of those is Bitcoin.

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Buffett’s Take on Bitcoin

Over the past decade, it’s been clear that the crypto craze isn’t something Buffett wants any part of. He described Bitcoin as “probably rat poison squared” back in 2018.

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in 2018. And his stance hasn’t wavered since. According to Benzinga, Buffett believes that cryptocurrencies aren’t a viable or valuable investment.

“Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” Buffett said at the Berkshire Hathaway annual shareholder meeting in 2022.

Although the Oracle of Omaha has his misgivings about the unpredictable investment, does that mean crypto is doomed as an investment? Not necessarily.

For You: 10 Valuable Stocks That Could Be the Next Apple or Amazon

Is Buffett Wrong About Bitcoin?

Bitcoin bulls argue that while it’s not government-issued, cryptocurrency is as fungible, divisible, secure and portable as fiat currency and gold. Because they occupy a digital space, cryptocurrencies are decentralized, scarce and durable. They can last as long as they can be stored.

Crypto boosters continue to predict massive growth in the coin’s value. Earlier this year, SkyBridge Capital founder and former White House director of communications Anthony Scaramucci told reporters that Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood predicts Bitcoin will hit $1.48 million by 2030, according to Fortune.

“They really don’t understand the concept and the whole history of money,” Scaramucci said of crypto critics like Buffett on a recent episode of Jason Raznick’s “The Raz Report.” Because we place a value on “traditional” currency, it is essentially worthless compared with the transparent and trustworthy digital Bitcoin, Scaramucci said.

Currently trading around the $66,000 mark, Bitcoin is up nearly 50% in 2024. This means it’s massively outperforming most indexes this year, including the S&P 500, which is up about 6% in 2024.

Although Berkshire Hathaway has invested heavily in Bitcoin-related Brazilian fintech company Nu Holdings, which has its own cryptocurrency called Nucoin, it’s possible Buffett will never come around fully to crypto, despite its recent surge in value. It’s contrary to the reliable investment strategy that has served him very well for decades.

“The urge to participate in something where it looks like easy money is a human instinct which has been unleashed,” Buffett said. “People love the idea of getting rich quick, and I don’t blame them … It’s so human, and once unleashed you can’t put it back in the bottle.”

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This article originally appeared on GOBankingRates.com: Warren Buffett Predicts ‘Bad Ending’ for Bitcoin — Is It a Doomed Investment?

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