Attributes of the Perfect Investment: A Comprehensive Guide
- DO FINANCIAL CANADA
Categories: Financial Planning , investment , real estate , stock market , tax-saving strategies , TFSA , wealth building
Investing can seem overwhelming, with numerous options and complex terminology. However, understanding the basics is key to building wealth. This guide provides an in-depth comparison of the attributes of the perfect investment of popular investment choices, highlighting their features and benefits to help you make informed decisions.
Let's Break it Down: Attributes of the Perfect Investment
The Perfect Investment is a real thing. To learn about it read this, then book a conversation to learn more and how to integrate into your financial portfolio.
1. Potential High Rate of Return
- Stock Market/Mutual Funds/ETFs: Yes, with risk
- Real Estate: Yes
- GIC/Bank Account: No
- Perfect Investment: Yes, no tax on growth and death
2. Consistent Rate of Return
- GIC/Bank Account: Yes
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: Yes
- Perfect Investment: Yes
3. Compound Interest - 8th Wonder of the World - Einstein
- Stock Market/Mutual Funds/ETFs: No – growth is not considered compound interest
- Real Estate: No – growth is not considered compound interest
- GIC/Bank Account: Yes
- Perfect Investment: Yes
4. High Risk-Adjusted Rate of Return
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: No
- Perfect Investment: Yes. The Perfect Investment below is a real 33-year old case situation of an Ontario dentist.
5. Conservative, Safe
- GIC/Bank Account: Yes
- Stock Market: No
- Real Estate: No
- Perfect Investment: Yes
6. Liquid
- Stock Market/Mutual Funds/ETFs: Yes
- Real Estate: No - less liquid and time-consuming to sell.
- Stock Market: Yes
- GIC/Bank Account: Bank accounts, yes. GICs, possibly no.
- Perfect Investment: Yes – very liquid
7. Guarantees
- GIC/Bank Account: Yes, usually
- Stock Market: No
- Real Estate: No
- Perfect Investment: Yes
8. Tax-Free
- TFSA (Tax-Free Savings Account): Yes
- Stock Market: No
- Real Estate: Yes, principal residence. No, rental real estate.
- GIC/Bank Account: No
- Perfect Investment: Yes – tax-free growth and death benefit.
9. No Contribution Limits
- GIC/Bank Account: No contribution limits
- Stock Market: No contribution limits
- Real Estate: No contribution limits subject to credit qualification
- Perfect Investment: No contribution limits
10. No Market Volatility - Control
- GIC/Bank Account: Yes
- Stock Market: No
- Real Estate: No
- Perfect Investment:: Yes
11.Yields Income & Capital Gain
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: Yes
12. Preferred Creditor Protection
- GIC/Bank Account: No
- Stock Market: No
- Real Estate: No
- Perfect Investment: Yes
13. Does Not Contribute to Inflation
- Real Estate: No – borrowing contributes to inflation
- Stock Market: No
- GIC/Bank Account: Yes – contributes to inflation
- Perfect Investment: Yes – does not contribute to inflation
14. Easily Transferable
- Stock Market/Mutual Funds/ETFs: No – usually long delays
- Real Estate: No
- GIC/Bank Account: Depends
- Perfect Investment: Yes
15. Easy to Manage
- GIC/Bank Account: Yes. Requires minimal management effort.
- Stock Market: No
- Real Estate: No
- Perfect Investment: Yes
16. Low Fees
- Stock Market: Yes and no - depends
- Real Estate: No – selling fees
- GIC/Bank Account: Yes
- Perfect Investment: Yes
17.No Hidden Fees or Penalties
- Stock Market: Depends
- Real Estate: No
- GIC/Bank Account: No – may have market value adjustment fees, probate
- Perfect Investment: Yes
18. Reputable (Legal)
- Stock Market: Yes
- Real Estate: Yes
- GIC/Bank Account: Yes
- Perfect Investment: Yes
19. Private (Not of Public Knowledge)
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: No
- Perfect Investment:: Yes
20. No Legal Fees
- Stock Market: Yes
- Real Estate: No
- GIC/Bank Account: Yes
- Perfect Investment: Yes
Other Considerations
21. Lower Deposits Available in Later Years
- Stock Market: Maybe
- Real Estate: Maybe
- GIC/Bank Account: Yes
- Perfect Investment: Yes
22. Instant Cash Available Without Further Asset Commitments or Guarantees
- GIC/Bank Account: Yes/No
- Stock Market: Yes
- Real Estate: No
- Perfect Investment: Yes - withdrawal or borrow
23. Recapture Finance Costs
- GIC/Bank Account: No
- Stock Market: No
- Real Estate: No
- Perfect Investment: Yes. This can add up to hundreds of thousands over a lifetime - traditional financial planning does not offer this.
Borrowing Comparison
24. Borrow Max Loan to Equity
- Real Estate: 80%
- Stock Market: 50%
- GIC/Bank Account: 90 to 100%
- Perfect Investment: 90 to 100%
25. Borrow with No Credit Check - Does Not Appear on Credit Report
- Stock Market: No – appear on credit report
- Real Estate: No - appear on credit report
- GIC/Bank Account: No - appear on credit report
- Perfect Investment: Yes – does not appear on credit report
26. Borrow - Guaranteed Preferred Rates for Interest When Borrowing
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: No
- Perfect Investment: Yes
27. Borrow - Privacy of Borrowed Funds Used
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: No
- Perfect Investment: Yes – not of public record
28. Borrow - Interest May Be Tax Deductible as per Normal Conditions
- Real Estate: Yes – rental real estate
- Stock Market: Yes – non-registered only
- GIC: Yes – non-registered only
- Perfect Investment:: Yes
29. Gains (if Any) Could Be Used to Owner's Advantage
- Stock Market: Yes
- Real Estate: Yes
- GIC/Bank Account: Yes
- Perfect Investment: Yes
30. Borrow - Flexibility of Loan Payments (Including Totally Open Loan)
- Stock Market: No
- Real Estate: No
- GIC/Bank Account: No
- Perfect Investment: Yes
31. Borrow - Credit Check Required
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
32. Borrow - Acceptable Credit Score
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
33. Borrow - Acceptable Proof of Income & Consistency
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
34. Borrow - Acceptable Gross Debt Service Ratio
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
35. Borrow - Acceptable Total Debt Service Ratio
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
36. Borrow - Proof of Assets Required
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
37. Borrow - Proof No Income Tax Owing Required
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Depends
- Perfect Investment:: No
38. Borrow - Proof No Property Taxes Owing Required
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
39. Borrow - Flexible Loan Payments
- Real Estate: No
- Stock Market: No
- GIC/Bank Account: No
- Perfect Investment: Yes
40. Borrow - Lien on Assets
- Real Estate: Yes
- Stock Market: Yes
- GIC/Bank Account: Yes
- Perfect Investment: No
41. Borrow - Time to Cash in Hand from Application (Business Days)
- Real Estate: 28+
- Stock Market: 14-28
- GIC/Bank Account: 14-28
- Perfect Investment: 1-3 days
Closing Thoughts
Each investment option offers unique advantages and challenges. Evaluating them based on your financial goals, risk tolerance, and time horizon is essential. Always consult a financial advisor for tailored advice.
We invite you to explore the exceptional services offered by DO FINANCIAL CANADA. Reach out for a personalized consultation to confidently navigate your financial challenges. With DO FINANCIAL's expert guidance, you can enhance your returns, optimize wealth, and achieve financial growth.