An Introduction to Alternative Investing Strategies By Michael Anger #FinanceFriday
Hi! I’m Michael Anger, and welcome to the first of many online posts and print articles in which I will be covering a wide range of topics under the general subject of alternative investing strategies and models.
What do I mean by “alternative investing strategies and models”, and why are they important?
As we have seen repeatedly throughout Western economic history, there is a boom, crash, and recovery cycle in the financial marketplace, and it repeats approximately every 7-10 years or so, give or take a couple years either side. We were reminded of this most recently and dramatically in late 2007 and early 2008, with the Global Financial Crisis, and the subsequent shock-waves it sent through the financial world, setting off a massive stock market crash that chopped the DOW Jones Industrial Average to less than half of it’s previous value, wiping out the life savings of millions in the process. This scenario highlighted a number of inherent problems with the traditional model of investment.
There’s a growing sense among many people that the investment world has fundamentally changed in the wake of the GFC, and one of the things I hear most often is people telling me about how they’ve lost faith in the traditional investment planning model of buying a mix of stocks, bond, mutual funds, and GICs and hoping for the best that this diversification will protect their portfolio and provide the growth needed. In fact, I sat down this past week with a couple who said that their RRSP has had effectively net zero performance over the past 8 years. If time is money, that’s a lot of money that they’ve missed out on! Fortunately, we were able to work out a strategy for how to fix that, but the lost growth due to 8 years of having their funds stagnating without growth occurring inside a tax-deferred investment plan, is a loss of time, money, and growth that can never be recovered.
I especially feel for those in retirement or on the verge of retirement, who had worked their whole lives to save up a retirement nest egg, only to watch it evaporate, and in some cases disappear completely. For millions, the value of a lifetime of hard work, saving, and sacrifice, was greatly diminished, and in some cases gone entirely, right when they needed it.
The traditional approaches to investing can seem to be structured against the small guy. The financial markets are subject to a huge list of factors that can sway values up or down in a matter of minutes, and there’s nothing that any average investor can do about it. You’re simply along for the ride on a hilly, bumpy, and unpredictable road. You can decide when you want to get on or off; but if the market isn’t where you want it to be when you need to exit, there’s nothing you can do about it. To add insult to injury, if you are going to lose money on a particular stock or mutual fund, those who’s advice you followed in purchasing it may get paid another commission when you sell and exit the losing investment!
I believe a new investment paradigm is long overdue… one that levels the playing field and puts more control, power, and security in the hands of the investor. That is what I mean by alternative investing strategies and models.
My new paradigm of investment takes into consideration that;
- greater and more direct security of the investor’s money is needed
- more stability in value and performance is required, especially as the population ages and earning potential decreases
- more responsibility and duty of care needs to be taken by investment channel partners and promoters
- simpler models and greater transparency are needed
Fortunately, such strategies, companies and opportunities exist, although it will take some time to go over all of them in sufficient detail. Through the coming weeks and months, I will delve into the various topics and approaches to alternative investment, looking at various strategies, opportunities, and the pros, cons, tips, tricks, and anecdotes from each type of strategy I’ve followed; covering both good and bad, ups and downs, successes and mistakes. My experiences are an open book, and my objective is to further your investing success and help steer you clear of the pitfalls.
In the meantime, I love to talk with investors, from novice to professional, and even those simply looking for a place to get started, and I invite you to call me direct on 1 855 4 MONEY 4 U, or email: email@example.com with all of your comments, questions, and inquiries at any stage.
All the best,
Michael Anger is a hands-on alternative investing expert, having started investing in Canada Savings Bonds at the age of 10. He has expanded and branched out considerably since then, and has experience investing in market securities, private mortgages, and real estate, including flipping and buying rental properties in Canada, New Zealand, and the USA.
Michael currently assists investors in achieving a passive, double-digit, cashflow return with income paid monthly on their cash or registered plans (RRSP, TFSA, LIRA, RESP, etc), and makes himself available at no charge to talk to and help investors at all levels with their investment objectives, challenges, and goals.