We are in a very interesting time right now. The Dow is down 42% off its 52 week high with more and with little chance of a major turn around in the near future. Yahoo finance asked the question “can we take another 22% drop in real estate valueâ€Â  On the other end we have GIC’s at a whopping 1/2% Where are YOU putting your $$
As RRSP season winds up I have spoken with many people who are unsure what to do about their RRSP’s. We all know that the RRSP is the single greatest tax management and savings tool available to the Canadian wage earner. However a 30 – 50% hit in the average personals retirement savings is enough to rattle damn near anyone. The question
Contrary to may peoples view of the question is not should I still invest in my RRSP, that answer is yes, it is most peoples most powerful tax management tool. The real question is where do I invest my hard earned dollars to actually MAKE MONEY. I know that might seem like a crazy statement in light of how most peoples investments faired last year ; ). I have spoken to several people who have taken the GIC route, however depending on what you choose some do not even keep pace with inflation. Yes, according to stats Canada we are still experiencing inflation, for how long I am not sure but the reality is even the so called “safe routes†are not getting you ahead.
So what is the best place to put your money??
I do not pretend to have all the answers in this time of tremendous change one thing I do know is this, with the banks contracting and borrowing getting more and more difficult there are some amazing opportunities in lending, short term mortgages and bridge financing.  The demand for these products is growing (even as the number of active projects shrinks!).  There are SAFE, exceptionally well secured, short term projects that are paying 10% – 15%.  Great returns, backed by great assets and quite liquid based on short terms.
I am so certain of this opportunity that I have partnered with a great friend of mine Ari Taub, to create a Mortgage Investment Corporation (MIC). Ari is an Olympic wrestler (competed last year in Beijing) a great lawyer and is connected to some of the best deal flow in the entire city of Calgary. Allowing us to pick and choose the deals we want to participate in. It is a very sweet deal!
Remember there are opportunities in ALL economic circumstances, but you cannot live in fear, you must educate yourself, participate and look where other people are not willing to. As I am writing this the DOW is at its lowest point in 11 years. GIC’s are hardly keeping pace with the cost of living. The truth is each of us MUST find ways to invest, contribute and profit, for us, our children and the world or this difficult economic time will last even longer than we fear.
If you are interested in finding out more and participating with us in our MIC, we are having an information evening on March 30th at 6:30 pm – 8:30 pm.
Please email jfiset@me.com to register.
