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Three U.S. opportunities ripe for investment in 2020 – Wealth Professional

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He added: “Most investors will also understand that putting less than 1% of a portfolio into a company is not really very productive: if that company turns out to be a real winner, it won’t create very much gain if the portfolio only has half of a per cent allocated to that company.”

In fact, out of the roughly 4,000 publicly-traded companies in the US listed on the major exchanges, more than 2,300 of them have market capitalizations below $1 billion, and over 2,700 have market capitalizations below $2 billion. 

“To make matters worse for large funds, many of the biggest opportunities for growth will be found in companies with smaller market capitalizations,” Frigon said. “Investment options diminish as an investment strategy gets bigger, as does the speed with which the strategy can buy or sell an investment position.

“For some investment goals, investing in funds with fewer assets under management can offer greater opportunity.”

The second major opportunity Frigon highlighted for investors was Israel, pointing out that every major US technology company, and increasingly US-based bio-pharma companies, have research and development centres in the country.

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Varcoe: Risks rising on Alberta's multibillion-dollar pipeline investment – Calgary Herald

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Article content continued

The Dakota Access ruling has also shown that even existing pipelines can face legal uncertainty.

“Even if you have the pipeline running and in service, they can ask you to get rid of it,” said Coleman.

Despite the potential pitfalls ahead, other experts feel the gamble is worth it.

Richard Masson, former CEO of the Alberta Petroleum Marketing Commission, believes the rationale behind the investment still stands.

Demand for Canadian heavy oil remains strong with Gulf Coast refiners, while competing production from Venezuela and Mexico has dwindled.

The province decided to use its only leverage — its commercial options — to propel the project ahead.

“The fundamental business case is there,” Masson said.

“On balance, it’s a big risk decision, but . . . I would still say it’s the right call. We need Keystone XL.”

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

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UCP government to use grants to attract petrochemical investments to Alberta – Globalnews.ca

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The UCP government has introduced a new incentive program it believes will attract billions of dollars worth of investment in the petrochemical sector, employing tens of thousands of Albertans.

The Alberta Petrochemicals Incentive Program will offer direct grants to companies that decide to invest in Alberta. Companies will qualify if their facilities are up and running by 2030.

“The sky is the limit for the benefits this industry can provide to Alberta,” Associate Minister of Natural Gas and Electricity Dale Nally said while announcing the program.

“Beginning now, we’re going to set our sights much higher.”

The new program won’t be a competition. All projects that meet requirements set out by the province will be eligible to receive funding. Those details are still being worked out, and it’s not known how much money the government will end up paying out.

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“From our perspective, if we’re getting return on investment that we need, and we’re getting billions of dollars of infrastructure development happening — and of course resource revenues for Albertans — then we’re not going to put a hard stop on it,” Nally said.

READ MORE: Canadian petrochemical growth spurt expected despite rising desire for fewer plastics 

That answer isn’t good enough for NDP Leader Rachel Notley, who believes an announcement without details can’t be considered a clear plan.

“This minister had almost nothing to do for the last 15 months, and to bring forward an announcement like this, with so little information, I ask the question, what has he been doing?”

While in government, the NDP brought forward a number of petrochemical diversification programs itself, including one that uses royalty credits to attract investment. The second phase of that program is still ongoing.

The industry itself believes this new program will be successful, and could attract $30-billion worth of investment over the next decade.

“Our members are looking at tens of billions of dollars of projects right now,” said David Chappell, the board chair of the Resource Diversification Council. He is also a senior vice-president with Inter Pipeline.

“As companies spend tens and hundreds of millions of dollars on projects, before they decide whether they go ahead or not, they can count on this in their economics.”

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According to the Chemistry Industry Association of Canada, the chemicals sector in Alberta is already worth more than $12 billion, and directly or indirectly employs more than 58,000 people.

© 2020 Global News, a division of Corus Entertainment Inc.

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Benefits of investing in a Registered Education Savings Plan RESPs

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A registered education savings plan (RESP) is widely known for the benefits it provides and its versatility in being able to use it whenever the need crops up. However, there are many other benefits of investing in these accounts that can help you in getting returns in the long run. Let us have a look at the most prominent benefits of investing in RESPs.

Investing in the registered education saving plan is a safe way to save funds for the said purpose. Let us consider why you should invest in RESPs.

Aided by the government – The federal government, through the Canada Education Savings Grant, adds 20% per dollar to your savings, with an annual limit of $ 500. The maximum limit for a lifetime is $ 7,200 per child. In the case of families with a lower income, choosing to invest in such funds can be a great deal. Henceforth, anyone eligible as per the rules and regulations can apply for it.

Taxable in the hands of the beneficiary –

When the beneficiary/child enrols for any post-secondary education program, they are eligible to get access to payments (also known as – educational assistance payments) from their funds. These payments are composed of a specific investment income and government grants.

Also, the tax on these assistance payments remains taxable on the hands of the person registered as the beneficiary. It is a strong possibility that the students do not have their income and are likely to fail to pay tax on such payments. However, the RESP withdrawal transactions are kept charge free. Learn more about taxes and RESPs here.

Flexibility in transfer –  RESPs can be a great alternative; then, you need to do the funds from your registered education savings plan to your registered retirement savings plan (RRSP).  As per the rules, you’re allowed to transfer $50,000 from your RESP funds to your retirement savings plan. Hence, the amount is freely transferable.

Easy setup – Easy access and set up is another great benefit of investing in the registered education savings plan. Almost anyone can set up an individual account for their child. The funds can grow faster when additional contributions come from friends and other family members when the contributions make the funds sustain for long.

Longevity – There are chances that the beneficiary may choose to defer their education plans once they pass high school. Since the funds in RESPs are accessible for a period of 36 years, they can utilize the funds whenever they feel like giving it a start. However, it is always advisable to go through the rules to ensure that there are no specific restrictions on this.

How do RESPs work?

RESP is an account that enables you to initiate investing for your child’s post-secondary education. In each case, the government contributions are subject to taxation only if they are withdrawn or paid for the beneficiary. As long as the recipient takes enrollment in any academic program, the fund is for the beneficiary.

The fund is to aid expenses for part-time or full-time studies in any academic program. It can be for trade, school, college or university. However, this payment entirely depends upon the RESP contribution made by the account holder into the RESP account. Also, the required contributions should be regularly made into a Registered Education Savings Plan to gain government grants.

It is important to note that as long as there is an appropriate confirmation of admission or enrollment in an educational program, the accumulated funds are for his purpose. Also, you can support the miscellaneous expenses for the education of the beneficiary using this fund. Hence, most certainly, almost anyone can open an RESP account for a child, naming them as the beneficiary.

Government Grants and RESPs

 

Since it is a government-aided fund, there are various benefits of it. However, there are several downsides to an RESP that should be known to anyone who intends to open an account in it. For example, if the child decides not to attend the college or university, the government will gets back its funds. However, the account holder can keep the funds belonging to his share, or any money made out of it.

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