Welcome to October
October is a transition month. Kids back to school in their routines, parents summer holidays over and settled back into work and home schedules. Church programs back to full swing. Things are just getting back to normal. Canadian Thanksgiving and Halloween sit as book ends to the month. And the stores have already moved to their Christmas inventories to remind you what is coming.
In the financial world, October is a good time for a short financial review. A time to check back on your financial plans from the start of the year, see how you are progressing, and think about any year end tax or investment actions you need to take before year end. Top up your RSP, RESP or TFSA, minor portfolio adjustments to maximize returns in the changing financial environments, etc.
Some current economic changes are the rapid lowering of interest rates. Experts forecast a further full 1% reduction in Canadian interest rates by year end. Consequently, GIC rates are dropping like a rock, so call us with any GIC renewals. We recently got clients much better rates on their GICs. We are still recommending GICs and MIC shares at this time due to the turbulence in the Canadian economy. The recent inflation numbers were below the targeted rate of 2% and consumer spending has slowed, so there are risks in the economy and financial markets. Direct mortgages are also a good option if your financial flexibility allows for lower liquidity, and we discuss DMI (direct mortgage investments) in our financial literacy segment.
Finally, if Drake has helped you investing or got you a good mortgage, please give us a good review on google HERE. Also follow our Facebook page and Instagram page. I hope you enjoy this month’s quiz on pumpkins.
Financial Literacy Segment
What is a DMI (direct mortgage investment)? Think of it like you (or your RSP/TFSA) being the bank. You directly lending money to other people in a mortgage where you are registered on their title as the mortgage holder. The returns are slightly higher than MIC returns and the trade off is that you can only get your funds out once per year instead of anytime with 90 days notice with MICs. If you want more information on DMI’s or compare them to MIC shares contact us.
Monthly Quiz
This month’s quiz is about pumpkins. Hope you enjoy it. I got 70%. Your kids might enjoy seeing if they can beat you.
QUIZ: A celebration of pumpkins - The Abbotsford News
Drake attended an investor trade show in late September and I spoke with Phillip Tai of Blue Pearl MIC about investing in the mortgage space. For a link to the presentation CLICK HERE.
Richmond Tradeshow – Mortgage Investing:
Watch our latest PPM and VIDEO PRESENTATION