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Is it the right time to invest? – Golden Star

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By Laura Wierzbicki

Living in this mountain paradise we often find ourselves enjoying the best life outdoors rather than having a healthy financial situation. The ultimate goal—of course!—is to find that perfect balance between fun and funds. My name is Laura Wierzbicki, Consultant at IG Wealth Management (Investors Group Financial Services Inc.). This is my first of many finance columns. I hope to make comprehensive financial advice easy and accessible with a few hundred words each month.

At any time of the year, it can be tough to set aside money to invest – either in your investments held in an RRSP or to add to your other portfolios – and that is especially true in the wake of your holiday season spending. Then there’s your assessment of the ‘state of the market.’ Will it go up? Will it go down? Should I invest now or should I wait?

These are all valid questions, of course, but there is one simple answer: Make your investments now. Here’s why.

It’s impossible to time the market – just ask any knowledgeable investment professional. Trying to hit a high return and avoid a low one by jumping in and out of the market is a sure way to curtail your returns. Time in the market is a better path to investment success. That’s because of this historical truth: Markets always move up and down but the long haul trend is always up. So, stay true to a long-term investment strategy for higher long-term returns.

For most investors, the best long-term strategy is to make your investments immediately, regardless of whether the current market is up or down. Even better, invest regularly instead of holding off and making a lump sum investment once a year – because, by investing regularly, you will accomplish these important investment goals:

You get the full benefits of dollar cost averaging – meaning you make your investment purchases (by acquiring more units of investments held in an RRSP or purchasing non-registered stocks).

Regardless of whether the current price is low or high. Over time, the average cost of your investments will be lower and your potential for longer-term returns will be higher.

You maximize the value of your investments held in an RRSP. Your money grows tax-deferred inside your RRSP. By making regular contributions, the magic of compounding can add thousands to your retirement fund. Here’s an example: Contribute $200 a month to your investments held in an RRSP (at an average compounding return of 5.5 per cent) and you’ll have $128,407 after 25 years. But if you make a single lump sum contribution each year near the RRSP deadline, your 25-year accumulation will be only $122,766.

Especially at this time of year, it’s difficult to find a lump sum to invest – but at any time of year, it’s much easier to come up with $100-200 a month through a Pre-Authorized Contribution (PAC) plan that automatically invests an amount you choose in investments you choose.

Sleep easier by always looking at the big picture. Don’t worry excessively about the performance of one investment. View your investments from the perspective of your overall portfolio and your long-term goals.

By investing regularly and using a balanced investment strategy, you will achieve your financial goals. Your professional advisor can help design the plan that’s best for you.

Laura’s advice comes with 10 years’ experience in financial services. She offers comprehensive, fully customizable financial strategies and solutions, working one-on-one with business owners, retirees, families, and individuals focused on building their net worth. Don’t hesitate to reach out for a holistic approach to investment solutions, insurance products, and mortgage planning.

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Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations.Investors Group Trust Co. Ltd. is a federally regulated trust company and the mortgagee. Mortgages are offered through I.G. Investment Management, Ltd. Inquiries will be referred to a Mortgage Planning (Agent) Specialist.

This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact Laura Wierzbicki | Consultant | IG Wealth Management

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Is Twilio Still A Good Investment After Smashing Earnings? – CMC Markets

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Twilio (NYSE: TWLO) is an American cloud-based platform-as-a-service business that enables software developers to use digital communication such as calls, texts, and emails to enhance the user experience. After reporting blowout Q4 2020 earnings, and the stock sitting close to all-time highs, is it still a good investment?

This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here.

 

Bull Case

Twilo has been one of the beneficiaries of the “shift to digital”, where companies would adapt to the internet and mobile in ways that could often take years in the past. Since COVID-19 hit, this timeline has been compressed to weeks and months and has acted as a secular tailwind for the company. This is demonstrated in a report published by Twilio last year surveying over 2,500 companies which found that 97% of companies found that the pandemic sped up this acceleration. Furthermore, companies’ digital acceleration strategy was accelerated by an average of six years. This acceleration has benefitted Twilio to date but looks set to continue in the coming years. 

Twilio reported $548.1 million in revenue, an increase of 65% year-over-year, and full-year revenue growth of 55% to $1.76 billion in Q4 2020. It has a diversified revenue base with 27% of sales generated outside of North America and spread across different business types and sizes. 

Whether you are aware of it or not, you have likely come across Twilio’s software in everyday life, whether to verify your number via Whatsapp or getting messages from Lyft or Airbnb.  Along with several high-profile customers, Twilio reported 221,000 active customer accounts as of December 2020, compared to 179,000 a year prior. Twilio has suffered from losing the business of large customers, such as Uber, which accounted for roughly 12% of revenue. However, despite a short-term fall in the stock price, Twilio continued to grow revenue and decrease its customer concentration levels. Today, its top 10 customers account for 13% of revenue, a 1% decrease YoY. The stickiness of its business and increasing spend by customers is demonstrated in its dollar-based net expansion of 139% in Q4. 

A passionate founding CEO is also a positive indicator. Twilio head, Jeff Lawson, has an impressive 95% approval rating on Glassdoor and still owns a large stake in the company. Twilio also has one of the most diverse leadership teams of any publicly-traded company, with women making up 6 out of 13 of its upper management.

Finally, Twilio has acquired SendGrid and Segment over the past 3 years, and while a strategy of growth by acquisition can be risky, it has demonstrated its ability to do so successfully.

 

Bear Case

Twilio’s valuation may be a cause for concern for investors as it is currently trading at roughly 37x price-to-sales ratio. This high multiple will mean that management will need to continue to execute on its forecasts. Twilio is also not the only player in the space, with Microsoft’s Azure Communication Services providing stiff competition. 

Twilio is also still unprofitable despite a great year of revenue growth, reporting a net loss of $490.9 million in fiscal 2020 compared to $307 million a year prior. On an adjusted basis, this loss is lessened due to excluding items such as stock-based compensation. Nevertheless, it is clear that Twilio has some way to go.

Twilio’s gross margins are not as high as other SaaS companies either, coming in at 56% for Q4, a slight decrease YoY. Although management expects 60-65% margins over the long term, this is yet to materialize, and investors should keep an eye on it. 

 

So, Should I Buy Twilio Stock?

Twilio is well-positioned to benefit from a shift to digital during COVID-19 and in a post-pandemic world and the visionary Jeff Lawson at the helm. Twilio has the numbers to back it up and could be a great addition to a portfolio. The stock is likely to be volatile due to the run-up in recent times, but investors should take advantage of any weakness in the stock as it is likely to continue to keep performing.

MyWallSt gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now!

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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Investment Firm for the Ultra-Rich Opens Office in Hong Kong – BNN

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(Bloomberg) — Investment firm Cambridge Associates is opening a Hong Kong office, ramping up its focus on Asia amid a surge in wealth in the region.

The Boston-based company that serves clients such as endowments, family offices and pension funds already has offices in Singapore and Beijing. It hired Edwina Ho in February as senior director of business development for Asia and relocated its head of the global private client practice, Mary Pang, to Singapore from San Francisco, according to a statement Monday.

“Asia has long been a key market for Cambridge Associates and we are very excited to be expanding in Hong Kong as the next stage in our mission to provide strong investment performance and excellent service to clients across the region,” said Aaron Costello, the firm’s regional head of Asia, in the statement.

Wealth growth has surged in the region in recent years and the number of people with more than $30 million is forecast to outpace the rest of the world through 2025, according to a Knight Frank report last month. The richest Asia Pacific billionaires are worth a combined $2.5 trillion, almost triple the amount at the end of 2016, data compiled by Bloomberg show.

Cambridge Associates, which has more than $38 billion under management, serves over 230 wealthy individuals and families globally. The company’s owners include the Hall family behind Hallmark greeting cards, the Rothschilds and the Boels of Belgian investment firm Sofina SA.

The rapid wealth growth in Asia has pushed financial firms to turn their focus to the region. HSBC Holdings Plc said it would shift billions of dollars of capital from its investment bank in Europe and the U.S. to fund the expansion of its Asian businesses. Singapore’s DBS Group Holdings Ltd. has seen a rise in accounts for family offices.

The world’s ultra-rich have also flocked to the region to establish their wealth-management shops. Google co-founder Sergey Brin set up a branch of his family office in Singapore, while Bridgewater Associates’ Ray Dalio said in November it would open one there. Vacuum-cleaner mogul James Dyson is another who has his firm in the city-state.

©2021 Bloomberg L.P.

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5 best investment options for women – Yahoo Movies Canada

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Investing your hard-earned money can be a daunting task, especially if you are a novice. A quick internet search can overwhelm you with numerous schemes and products and leave you confused.

To help fix your problem, we have listed five safe investment options. Scroll down to learn more:

Fixed deposits

Easily the safest and simplest, you can start here. Fixed deposits offer much higher interest rates than regular savings accounts. They have a lock-in period ranging from 7 days to 10 years. Withdrawing funds before maturity, will result in a certain amount of penalty – usually 0.5 percent to 1 percent – being charged by the bank. Some banks, however, allow premature withdrawals with zero penalty.

All banks and NBFC’s offer FDs and to invest in one, all you need to do is quickly compare the latest interest rates offered by the leading banks and then simply go to the bank’s website and open an FD account.

If you are a senior citizen, you can enjoy a slightly higher rate. There’s also a tax-saver FD covered under section 80C of the Income Tax Act that lets you invest up to Rs.150000 a year and enjoy tax savings. It has a lock-in period of 5 years.

Public provident fund

Backed by the government, it’s the second-best option for you. Returns are guaranteed and the amount invested is also deducted from taxable income of up to Re.1 lakh. But the icing on the cake is tax free returns. Can it get any better?

Annually, you can invest Rs500 to Rs.1.50 lakh. You can either invest the whole amount at one go or in over 12 instalments in a year. This makes it an ideal choice for those without a fixed source of income. The rate of interest on your investment is reset every quarter by the government in line with market rates. The current interest rate is 7.10 percent.

The lock-in period of 15 years is a bit of a dampener but the idea is to let you create a corpus for your retirement. Besides, you can always partially withdraw the funds after completion of 6 years. You can also take out a loan against your PPF account between the 3rd and 5th year.

You can open a PPF account in any Post Office in India and also in public banks and designated private banks.

Mutual funds

Stock markets are notoriously volatile. You bet right, you multiply your money. Yet, sometimes, even your best bet can go wrong wiping out every penny you invested. Overall, it’s a risky proposition and the pandemic has made it even more so.

But that shouldn’t stop you from trying it out. Mutual funds allow you to reap the benefits of the market while avoiding the downsides. They do so by reducing risk through diversification – a process in which your money is invested in various proportions between stocks, bonds and fixed deposits of different companies. When stock prices rise, you make a profit. When the market corrects itself, the bonds and fixed deposits in your portfolio will you get some fixed returns.

Experienced fund managers take care of your money, which means you needn’t have a finger on the pulse of the market. They charge a brokerage fee for it and you also have to pay capital gains tax on your profits.

There are a range of funds available in the market today. Depending upon your risk appetite, you just have to pick one. The stock heavy ones are risky but can almost double your money. The less risky ones are more into bonds and fixed deposits but guarantee you a certain return. There are also purely equity funds and debt funds.

Some funds, such as ELSS (Equity Linked Saving Schemes) allow you to save on tax.

SIPs

Systematic investment funds or SIPs offer an easier way of investing in the markets. A type of mutual fund, it lets you invest a small amount every month – it could be as less Rs.500 though most funds require a minimum of Rs.1000 investment.

This has many advantages. First, you don’t need to have a substantial saving (when you invest in mutual funds, you put in a lump sum at once). A fixed amount is debited from your bank account at regular intervals to be invested in SIPs.

Investment in SIPs is for one year minimum. If you wish to discontinue at any point, you simply need to inform 15 days prior to the payout. Your SIP will be discontinued and you can withdraw the money whenever you want. This flexibility, enables you to stem losses whenever the market is going down.

National pension scheme

Saving for retirement starts from the moment you start earning. Every month you not just set aside a certain amount but also invest it in various schemes to build a corpus for your retirement.

The government-backed national pension scheme, as the name suggests, is meant just for that. It offers various pension solutions and you can choose one to suit your requirement. For instance, you can choose to invest in equity, bonds, government securities and others, depending upon your preference. You can also let your funds be invested automatically in different assets.

Since it’s a pension scheme, the sum matures only when you reach your retirement age of 60. The accumulated interest is tax free. If you choose to withdraw the whole of it, then 40 percent of the maturity proceeds are tax free. If you opt to get it in the form of a pension post maturity, the amount will be taxed like regular income.

More stories on Women & Health and Women & Wealth — Yahoo India’s special on International Women’s Day 2021, here.

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Women’s Day 2021 | Yahoo India

Women’s Day 2021 | Yahoo India

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