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.