Real Estate Bits

When the markets are volatile, many investors consider moving into safer investments. The thinking is that, when conditions in the markets improve, they will move back into stocks. But it's important to understand that this strategy - natural enough given the market's ups and downs, naturally comes with comes with its own risks.

Trying to time the markets is a risky proposition. If you sit around waiting for the best time to reinvest, chances are that you may miss the boat and end up on the sidelines while the market climbs.

A better strategy is to build a diversified portfolio, take a long-term view, and maintain your discipline.

The Lowdown On Investment Risk

Each of the three main classes of investments - cash, fixed-income, and equity-based - has a role to play in a diversified portfolio. Each also comes with its own brand of risk.

Cash-type investments, which are the most secure, include Guaranteed Investment Certificates (GICs), money market funds, & high-interest savings accounts. Fixed-income investments include bonds, mortgages & longer-term GICs. Equity investments, which are the most volatile, include stocks and stock mutual funds.

Cash-type investments provide security and liquidity. If you were to build your entire portfolio around these types of investments, you would experience no financial-market risk. But your portfolio would be vulnerable to inflation - the risk that the cost of living will outpace your savings. To put this in terms most of us are familiar with, consider what you paid for higher education and think of what it would cost today.

Tip: Cash investments are good for short-term savings goals and building an emergency fund. Holding some cash can also help the enterprising investor take advantage of opportunities following declines.

Fixed-income investments add stability to your portfolio. When stocks are experiencing turbulence, bond markets often benefit. With their ability to help preserve capital and provide a fixed rate of return, most investors benefit from including bonds or bond funds in their portfolios. But these investments also come with risk most notably, that interest rates may rise. In this case, you would be left holding a security or securities that pay less than the going market rate.

Equity-based investments provide growth potential. Fluctuating stock markets may grab the headlines - particularly when the moves are down - but the fact remains that equities are your best bet for growth over the longer term. Historically, equities have provided some of the very best market investment returns.

By taking on some additional risk in the short term, you increase your chances for success over the longer term. What's more, the longer you hold your equity investments, the less risk you will face over time. This knowledge can help you put the market headlines in perspective.

The Comfort Zone

Most of us could benefit from holding a mix of the major asset classes in our portfolios. This is the idea behind diversification — one of the cornerstones of sound investing. If the equity portion of your portfolio is declining, cash and bonds may be taking up the slack. The precise mix that's right for you will depend on your goals, the time horizon, and your personal tolerance for risk.

Did You Know: Most financial institutions and financial planners have tools that can help you determine an asset allocation mix that has been determined to be the best for your financial goals.

You should not only assess your comfort level with stock-market volatility, but also revisit it now and again. For instance, if market volatility makes you nervous - a good test is whether it keeps you up at night - chances are that you may benefit from a more conservative asset allocation (more cash and bonds).

The best strategy, as always, is to build a diversified portfolio of sound investments, based on a plan that reflects your goals and comfort level. For most of us, it's long-term success that counts, not guessing which sector or stock will be the next big thing. A disciplined strategy can help put the odds of investment success in your favour.

Regards,

Nino.

The fun part of shopping for a home is actually looking at various properties to determine if they are suitable for you and your family members. You already have your “wish list” in place, your financing has been approved and now it’s time for the “Hunt”. I’m going to detail things to watch for in Tricks Of The Trade during February and March. You’re not just looking for a home – you’re looking for the “right” home.

You’re Not Just Buying A Home - You’re Buying A Street,
A Community & Neighbours ...

1) Stand On The Street & Look At The House: What do the properties look like on either side? Are they well cared for? What about a few doors down on either side? These will be your neighbours. Things will change over time (everything does) - but what if things didn’t change for a year or 5 or 10?

2) Now Turn Around & Look Across The Street: This is your sight line every time you walk out of your house. Now look across the street from inside? How do you feel about what you’re seeing?

Is the house on a bus route? Listen as the cars go by – is it noisy? Speak to people on the street. Knock on a few doors in the neighborhood and say hello. Ask about the neighbourhood and listen to what people say. Come back to the neighbourhood on Saturday night at 1:00 A.M. & on Sunday at noon. Really look around. This may be your home! Is this house across from a park? A school? A gas station? A couple of run-down houses? A convenience store? A Stop Sign? An apartment building or complex? A barking dog? Is it a corner lot and if so do your like that aspect of the property? Guess who will be shoveling the snow and cleaning up the leaves? (Hint = that would be you).

3) Do You Like The Front Steps - the landscaping? The front door? Remember - things can be changed. Does your budget allow you to make changes right now & if not is that okay with you?

4) Now You’re Inside The Front Door! Is the foyer big enough? Do you walk right into the open concept living room & if so - do you like that? Do you want a foyer? Is there a coat closet or are hooks on the wall fine with you? Can you make changes? Is there room to add a coat closet? Is there room for a hall tree? Where do winter boots go? Do you care?

5) The Living Room: You will spend time here and you will entertain here. Will the television and/or entertainment centre be in this room? Is it big enough? Is there enough room for your furniture? Are you planning to de-clutter (say “yes”) before you move? Can you replace existing furniture with new, more suitable pieces? Who uses this room? Does a focal point like a fireplace or built-in shelving limit the space? Do you like to move furniture around and if so - can you do that in this space? Is there room on the walls for art? Mirrors? What is the lighting like? Is there space for end tables & a coffee table?

6) The Dining Room: Is it big enough? Do you usually entertain on a small scale - 6-8 people or do you have large dinner parties? Does your existing furniture work? Are there doors that open into the room? Is there room for a buffet? China cabinet? Can you add built-ins? Is the room limited by doors and windows? Do you eat in the dining room every day or on special occasions? If you ever have a event catered - is there room for serving staff or must they work from the kitchen? Does the space allow for an extra leaf or 2 be added to the table? Is your entertaining style casual or more formal?

7) The Kitchen: Often called the heart of the house and for good reason. The kitchen is a heavy traffic area in most homes. Do you like this one?

Can you live with the kitchen “as is” for 1 year? 2 years? Longer?
Is it a great space for entertaining? Family events?

8) The Family Room: Is this a priority for you and your family? Will this space have more than one purpose, and if so, can it accommodate its intended uses? Can you access the back yard from this room? Will it be a media room as well as a family room, and if so, is there a wall large enough for a drop down screen or a wall-mounted plasma? Is there adequate storage or room to add to what currently exists in the room? Is there a fireplace? What is the flooring? Is the lighting to your liking? Will you need to renovate?

Donald: Oh Jessica – I’ve loved you since we first met. I know I don’t have buckets of money like my friend Dan, or a hot film career like Dan has, or his terrific good looks or sense of humour - but I’m loyal and I have a car. Marry me!
Jessica: Well, I love you to Donald - but before I accept your proposal, can you just tell me a bit more about your friend Dan.

Penelope: You dating service is a total sham.
Manager: Well now let’s see here. You requested someone not too tall, who likes cold weather and water sports and is a fancy dresser.
Penelope: That’s right but when I opened the door the other night for my date, there was a penguin standing there.

Millie: I heard the most amazing thing at Jenny’s wedding the other day. I never knew a woman could have 16 husbands.
Jane: That’s ridiculous.
Millie: No it’s not they said: 4 better – 4 worse – 4 richer and 4 poorer.

Note: It is generally recommended that any alarms installed near the kitchen be of the photoelectric-type.

Shop Smart: Find out what type of alarms suit your needs and the best areas of your home to install them to conquer nuisance alarms forever.

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