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  • Another Year, Another Record - Private Wealth Canada
    identify and avoid some of the most the common mistakes that plague many retail investors If any of the following sound familiar to your personal experiences it may be time to check in with your investment advisor to discuss your wealth management strategy Taking too much too little or the wrong risk Every investor reacts differently to risk The key here is to have a firm grasp of your own financial and emotional tolerance to risk and to be comfortable with your investment decisions as they pertain to long term goals Taking too much risk can lead to large variations in investment performance that may be beyond your financial capacity or out of tune with your true investment personality On the other hand taking too little risk can result in returns that fall short of your financial goals If you re tempted to make a risky buy or sell decision in reaction to short term market chatter see below Focusing on the wrong performance Ask yourself what are my goals as an investor Knee jerk reactions to speculation or market corrections can lead to unplanned portfolio modifications This can cause you to divert from your overall strategy and unknowingly sacrifice long term investment success If you re concerned about unexpected market swings first take some time to cut through the noise with the help of your advisor before you make a rash decision Remember to focus on the big picture long term performance Paying too much in fees and commissions It s important to find an advisor who shares your investment philosophy and can be a trusted partner in helping you to achieve your goals However it s equally important to consider the cost of your investment choices and to make these decisions with your eyes wide open Whether it

    Original URL path: http://privatewealthmagazine.ca/articles/whatarebillionairesdoingdifferently.php (2016-04-26)
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  • Finding The Right Financial Planner – What Do You Look For?
    planner has been in practice the number and types of firms with which he has been associated and how his work experience relates to his current practice Inquire about what experience the planner has in dealing with people in similar situations to yours and whether they have any specialized training Choose a financial planner who has at least two years experience developing plans for individuals regarding their financial needs If you have specialized needs look for someone with that expertise What services do you offer The services a financial planner offers will vary and depend on her credentials registration areas of expertise and the organization for which she works Some planners offer financial planning advice on a range of topics but do not sell financial products Others may provide advice only in specific areas such as estate planning or taxation Those who sell financial products such as insurance stocks bonds and mutual funds or who give investment advice must be registered with provincial regulatory authorities and may have specialized designations in these areas of expertise What is your approach to financial planning The types of services a financial planner will provide vary from organization to organization Some planners prefer to develop detailed financial plans encompassing all of a client s financial goals Others choose to work in specific areas such as taxation estate planning insurance and investments Ask whether the individual deals only with clients with specific net worth and income levels and whether the planner will help you implement the plan they develop or refer you to others who will do so Ask if they will provide you with a copy of the financial plan for your records You will want to refer to it from time to time and revise it as personal circumstances change Will you be the only person working with me Financial planners often work with other professionals such as lawyers and accountants and it is also quite common for a financial planner to work with others within their organization to develop and implement financial planning recommendations You may want to know more about the team who will be working on your file How will I pay for your services Your planner should disclose in writing how she will be paid for the services she will provide Planners can be paid in several ways Commissions The planner is compensated if you purchase financial products to implement a financial planning recommendation In some cases the commission is paid by the suppliers of financial products such as an insurance company In other cases you pay the commission for example if you buy shares of a publicly traded company Commissions are usually a percentage of the amount you invest in a product Salary The company for which the planner works pays the planner a salary The planner s employer may get its revenues from fees paid by clients such as yourself or in commissions paid by clients making a purchase or by the suppliers of financial products Fee

    Original URL path: http://privatewealthmagazine.ca/finding_financial_planner.html (2016-04-26)
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  • The Wheels Haven’t Fallen Off These Investments
    should be acquired because of the attraction they hold specifically for you Perhaps it s their beauty performance or memories of youth RM Auctions a Canadian company based in the hamlet of Blenheim ON a three hour drive west of Toronto is considered by many to be the world leader in collector car auctions Proof can be said to lie in the fact that the undisputed pinnacle of high performance cars Ferrari retains RM to conduct auctions for them on their own hallowed premises RM has 10 insider tips for classic car investing which they ll gladly send to you but they can be summed up in three words desirability conditions rarity There s also no doubt that provenance plays an enormous role Provenance is a combination of history and originality Which inevitably brings us to the Ferrari 250GTO arguably the most famous and valuable car ever built In fact if you Google Ferrari 250 GTO there are more than 236 000 results In 1962 a brand new Ferrari 250 GTO a race car you could also drive on the street would have cost you US 18 000 A scant three years later in 1965 no longer truly competitive but still a wonderful car one could be acquired for a mere US 15 000 However there were only 36 total GTO examples made and just last year one sold privately for a rumored US 28 5 million That s 190 000 per cent appreciation in 43 years which sure beats the TSX which returned a comparatively paltry 1 053 per cent On May 17 2009 at the RM Auction at Ferrari s Maranello headquarters a legendary 1957 Ferrari 250 Testa Rossa smashed the auction world record at US 12 4 million The list price new was US 12 000 Another highly unique and desirable race car was offered for sale by Mecum Auctions at the prestigious Monterrey CA auction in August 2009 part of week long festivities including the Pebble Beach Concours d Elegance where you are more than likely to bump into Jay Leno an avid collector and aficionado and perhaps a very remorseful Bob Bondurant The 1965 Shelby Daytona Coupe one of only six ever built was the first American car to win the coveted World Manufacturers Championship Bob Bondurant the famed American race driver bought this particular one in 1968 for 4 000 and promptly sold it for 10 000 ecstatic at his good fortune and quick profit At Monterrey it sold for an impressive US 7 25 million The grand daddy of all auction action is in January in Scottsdale AZ where up to 4 000 cars can come on the block the majority at no reserve No fewer than six auctions take place over 10 days including the world famous Barrett Jackson event which concentrates on American cars especially 60 s muscle cars This one is as much car show as auction and draws a quarter of a million visitors over its week long run

    Original URL path: http://privatewealthmagazine.ca/wheels_fallen_investment.html (2016-04-26)
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  • PRIVATE JET TRAVEL
    not be readily available If your plane is not in use you may consider making it available for charters to help reduce costs during down times AIR CHARTER SERVICES Charter air is an option at the other end as it requires no expense except the cost of flights as the charter company is responsible for maintenance staffing training and storage With thousands of charter companies there is a great variance in service quality pricing and availability Air charters don t require you to put up large amounts of money upfront and there are no monthly fees Sometimes the charter may act as a broker and not supply their own planes which may cause you quality and safety concerns Get your questions ready and get the answers before engaging any charter air supplier If you fly between 20 to 300 hours a year on private airplanes it s time to check out fractional ownership or jet cards FRACTIONAL OWNERSHIP In 1986 NetJets a Berkshire Hathaway company introduced the first fractional ownership program where its customers could buy an interest fraction in a specific private jet Today the usual term is a five year period and depending on the size of your share this gives you access to 25 to 400 hours each year Usually you buy a five year term share of it at a pro rated price The fractional provider looks after staff training support catering maintenance etc while customers pay a monthly management fee and an hourly rate based on the time they fly Typically these charges do not include the time the plane takes in coming to get you or returning to its base You can renew your term at the end of the fifth year or sell your share back for fair market value less handling before the end of the term If another customer has your plane when you need it the provider supplies another from their fleet on less than 12 hours notice If you need a larger or smaller plane than you purchased shares in the provider supplies one and deducts more or less time If your travel budget is about 80 000 a year you should consider fractional ownership JET CARDS A recent invention that has introduced the most new users to corporate aviation is the Jet Card Users don t own a plane or shares in a plane Instead like a pre paid telephone calling card they just pre pay for a block of flying hours from 25 hours up It works like a debit card as flying time is simply deducted from the card balance You have no further obligation after using up your hours Virtually all fractional jet travel providers offer a jet card program The benefits of fractional ownership and jet cards are pretty much the same the opportunity for short notice flights access to larger or smaller planes depending on the need the use of planes which are managed and maintained by professional aviation companies While occasional fliers

    Original URL path: http://privatewealthmagazine.ca/private_jet_travel.html (2016-04-26)
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  • Another Year, Another Record - Private Wealth Canada
    The coming of age of the Internet and improved access to data has enabled the online P2P lending industry to emerge and fill the void for small business loans that are not adequately serviced through traditional means Today small business owners can go online any time of the day or night conduct a quick search apply and get funded by lenders without leaving their home or office or using snail mail to send paperwork By using online connections to accounting software Canada Revenue Agency bank accounts and supplier portals lenders have the tools they need to make decisions in real time and fund in less time than it took before through traditional loan application methods It is easy to understand why online P2P lenders are gaining traction globally How Does Peer To Peer Lending Work Once lenders have created and obtained funding through their account on the P2P lender s website they get access to all the available loans Lenders can choose which loans they want to fund based on their preferred risk return criteria or they can select to be automatically diversified across all the available loans on the platform The P2P platform manages the small business owners loans and makes payments to the lender What Are The Benefits To Lenders Lenders earn a return greater than their bank savings account Borrowers get access to capital quickly at a risk appropriate rate Depending on the jurisdiction lenders may need to be accredited investors although in the U S UK and elsewhere in Europe retail investors with idle money earning close to zero per cent in their savings accounts can also participate Why Is Peer to Peer Lending A Game Changer Marketplace platforms make the Canadian economy more stable They eliminate the too big to fail risk associated with traditional

    Original URL path: http://privatewealthmagazine.ca/articles/breaking-down-barriers.php (2016-04-26)
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  • Another Year, Another Record - Private Wealth Canada
    t communicate about wealth transfer Transfer of the family cottage Parents may expect the cottage to be used for many generations but their children may feel differently This could result in lost planning opportunities for the property while the parents are alive Inheritance Parents who want to protect their wealth for their children or grandchildren through the use of trusts may be concerned that their children could perceive it as not trusting their judgment Charitable gifting Parents may look to reduce taxes at death through charitable gifting but their children may not agree with or understand the benefits Probate Parents may want children to jointly hold investment or bank accounts to avoid probate but may not realize it could potentially cause conflict among the children and limit estate planning strategies that could be leveraged Insufficient Planning While discussions between generations are lacking so is communication with financial and other professional advisors including lawyers and accountants While many estate planning strategies may help you achieve your objectives all successful plans start with open conversations between spouses professional advisors and ultimately family members to provide clarity and a vision for your legacy says Lana Robinson executive director CIBC Wealth Advisory Services It is key to work with an advisor who can objectively help you understand what strategies are best for you and can also provide advice on how and when to communicate the plan to your family For those leaving an inheritance Robinson stresses the importance of diligent estate planning with a team of professional advisors There can be significant complications for loved ones if arrangements for a wealth transfer are not properly managed she says Open communication with your advisors is critical Strategies viewed in isolation without the full picture of your situation could cause unintended consequences Recommended Steps CIBC recommends

    Original URL path: http://privatewealthmagazine.ca/articles/wealth-transfer.php (2016-04-26)
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  • Another Year, Another Record - Private Wealth Canada
    price ever paid for a car at the Scottsdale auction a 1964 Ferrari 250LM at a paltry 9 625 000 in just five minutes as you can see in this video clip https www youtube com watch v K2cgxrywgh0 feature youtu be Overall highest sale was at Canada s RM Sotheby s for this 1964 Ferrari 250LM at 9 6 million Photo courtesy of Darin Schnabel RM Sotheby s Only 32 of these competition cars that could be driven on the road were ever made making them exceptionally rare plus they are Ferrari s first rear engine road race cars Million Dollar Mark Seventeen cars broke the million dollar mark with not surprisingly Ferrari having eight of the top 10 sales These included a 275GTB 4 bringing 3 657 000 and a 365GTB 4 Daytona Spider at 3 3 million Top non Ferrari but yet another Italian supercar was a 1971 Lamborghini Muira SVJ at 1 897 500 in seventh and a 1965 Porsche 904 Carrera GTS at 1 65 million in ninth http www rmauctions com az15 arizona results Gooding Company came in third with 51 5 million 11 cars over that magic million dollar mark and 25 new auction records Of 126 lots listed 90 per cent sold at an average per car of 451 900 again reflecting the demand for top quality vehicles Top sale here too was a Ferrari this one a 1959 250 GT LWB Long Wheel Base California Spider for US 7 7 million or almost a million dollars a word in its name Ferraris took four of the top five spots with a 1962 Superamerica Series 1 Coupe Aerodinamico going for 4 070 000 a 1968 330GTS for 2 420 000 and a 1963 250 GT Lusso at 1 925 000 Porsche was fourth with a competition 1966 906 Carrera 6 missing the 2 million mark by a mere 20 000 http www goodingco com results realized cat 39 Gooding sold this 1959 Ferrari 250 GT LWB California for 7 7 million Photo courtesy of Gooding Brian Henniker In only their fourth year in Scottsdale Bonhams came very close to breaking the record for a car sold at auction with yes yet another Ferrari This one a 1966 275 GTB Competizione went for 9 405 000 only a couple of hundred thousand or a few Mercedes less than RM s record Bonhams came very close to highest sale with this 1966 275 GTB Competizione at 9 4 million Photo courtesy of Bonhams Bonhams total for 84 cars on offer was 25 million and it also had a 90 per cent sell rate A 1969 365GTB 4 Daytona that was originally shown in the Montreal Auto Show and purchased by a Montrealer went for 748 000 a car that could have been purchased for about half that amount just two years ago showing how much the market for classic Ferraris has gone up A 1955 Mercedes Benz 300SL Gullwing formerly owned by the Prime

    Original URL path: http://privatewealthmagazine.ca/articles/AnotherYearAnotherRecord.php (2016-04-26)
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  • Making The Case For Emerging Markets Debt - Private Wealth Canada
    risk which you do not have if you invest in hard currency bonds in U S dollars that can be hedged back to Canadian dollars Q What is the impact of the growing strength of the U S dollar on these markets A Some benefit others not so much The economies that are closely linked to the U S economy tend to benefit So I am thinking of Mexico also some economies in Asia that tend to manufacture a lot and eventually channel demand to the U S They do benefit from a stronger U S economy and stronger dollar In some places the stronger dollar leads to a weaker currency which can put some pressure on debt ratios if they have a large share in foreign currency but that is really the exception I mentioned the Ukraine but I cannot really think of another one Some of the corporates in some of these markets might be more sensitive but really that is by a case by case basis Q The indications are that this year the U S could raise its interest rate Will that have much of a positive or negative impact or is it still dependent on how linked an economy is to the U S A When the fed finally starts hiking rates it will be because it is comfortable that the U S economy can withstand it and that means the U S economy is quite healthy Generally this is a good thing for emerging markets I think once the fed starts hiking it will be very gradual It will spend a lot of time talking about it announcing it However while the global economy is very integrated it would be a mistake to look at emerging markets as a whole in this situation You really need to look at each country individually which is how we approach this asset class We use a very bottom up approach where we analyze each country rather than treat it as a homogenous group Many countries are not that susceptible to a hike in U S interest rates The most susceptible are probably Turkey and South Africa which are still running large external deficits and rely heavily on portfolio investments I was at the IMF World Bank meeting in Washington and I actually expected every policy maker to talk about how they were going to respond to the Fed What actually surprised me was it was barely mentioned so it does not seem like such a big issue for policy makers And I quite understand this because many of these economies have built buffers and are not that exposed to U S rates rising Q Do investors get that point that you are really looking at individual country debt A We are moving in that direction as we should But it is true that traditionally it has been an asset class dominated by funds that follow the index quite closely In the past it used to be very

    Original URL path: http://privatewealthmagazine.ca/articles/EmergingMarketDebt.php (2016-04-26)
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