5 Reasons Why You Need Private Equity In Your Portfolio

Exempt Securities Explained

tax-plans

Reason 1: Lack of Volatility

2008/2009 is generally pretty fresh on everybody’s minds, is it not? I’m sure you recall losing 20-40% of your portfolio, and I’m not sure if you’ve recovered your losses back yet. This is a common issue within the public securities market.

But wait – just because you’re not in Stocks or Bonds, doesn’t mean that you’re not in the securities markets. Mutual Funds are essentially a conglomeration of stocks and bonds bundled together to make a fund.

Reason 2: Typically Higher Returns

How many times have you looked at your statement over the past couple years and seen returns of less than 4%? I’m guessing more than you would like. What if there was a way for you to generate a target of 6, 8, perhaps even 10% a year? That would help you get on track financially quite a bit faster, wouldn’t it? If you had $60,000 pulling a 6% ROI, that would generate $3,600 per annum for your portfolio. Sounds good, doesn’t it?

Reason 3: These Companies are in Your Backyard.

Support local is something we all would like to do more often. Donating is great, don’t get me wrong. But wouldn’t it be nice to give and get back? You’d be surprised what types of companies are located or even have a head office in your backyard, and looking for capital privately.

Reason 4: Portfolio Managers Vouch For It.

Often, portfolio managers are mandated to protect you from too much market risk. There’s a few who will do their best to expose you to only 75% of the upside, and 25% of the downside. Instead of chasing the next shiny object or next big thing, they focus on realistic and long-term objectives. Due to the nature of longer holding periods and lack of ties to a public exchange, this makes exempt securities a viable option. However, it’s almost unanimous across the industry that only about 30% of your portfolio should be invested in the exempt markets.

Last but not least

Enjoy this brief explainer video on the private markets.

Don’t forget to like and share this post if you enjoyed it. Spread Serenity, we don’t trust Ottawa or Bay Street with our money or the security of our retirement, neither should you! Be sure to follow me on your favorite social media accounts and sign up for my newsletter so you never miss a beat. Give me a call today, watch your stress float away, 587-894-6169 or Daniel.morrow@serenityfa.ca if you’d like to get more information about the services I provide. Alternatively, book a call/meeting here.


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