By Adrian Mastracci, KCM Wealth

Special to the Financial Independence Hub

“Each of us has a distinct investment personality. Hopefully, it resembles our comfortable tolerance for risk. Especially during market jitters like today.”

One of the significant guidelines that I use in designing investment portfolios is the client’s investment personality.

Let’s understand those personalities, also known as investor profiles, by summarizing the six I have adopted.

1.) Preservation

These are investors with virtually no tolerance for unpredictability in annual returns. They generally invest in guaranteed interest vehicles, which are stable investments having predictable income and no fluctuation in capital value. Typical asset mix is 20% in stock investments.

2.)  Income

Investors with low tolerance for variation in annual returns. These investors usually desire stability with fairly predictable growth and relatively little fluctuation in capital value. Typical asset mix is 40% in stock investments.

3.)  Balanced

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The latest FWB TV video has been posted at FWBSecurities.com and Findependence.TV. It’s entitled What are ETFs and why are they so popular?

It’s a three-minute primer on ETFs (Exchange-traded funds), featuring Hector McNeil of WisdomTree Europe. He says ETFs are growing exponentially and while they are currently just 12% of the mutual fund industry at just under US$3 trillion it won’t be long before they pass the US$10 trillion mark and gather assets that will be between 30% and 50% of the mutual fund industry.

That said, he issues three caveats: that you shouldn’t assume all ETFs are low-cost, and you still need to consider the issues of diversification and trading costs.

Here’s what Financial Wealth Builders president Paul Philip says about the segment: “I have heard many people confuse Index Funds with ETFs but they are not the same thing at all. Some think they are a one-size-fits-all solution but they are definitely not that. At the end of the day, it can still be active management, which has inherent risks and costs associated with it.”

Get sick and get paid. It’s a grim proposition but it’s one that is transacted upon every day through life insurance companies. Critical Illness [CI] insurance is a form of Living Benefits insurance that provides a lump-sum payment in the event the insured becomes seriously ill and survives a waiting period.

Most young adults don’t have CI coverage in force and are more likely to rely on debt to fund their recovery. Millennials report low savings levels, at about $13,000 each, and plan to use credit cards and loans to carry them forward in case of a critical illness.

Illnesses don’t affect just older people

It’s a common misconception that major illnesses only affect older people. A study done by the Neurology journal found that the rate of strokes among people in the 20 to 54 age group has increased from 13% to 19%. Continue Reading…

SensibleInvesting.tv recently released a free documentary that’s a behind-the-scenes look at the multi- billion dollar investment industry.

Welcome to the second part in our series entitled How to Win the Loser’s Game, which clocks in just under 8 minutes.

You can also access it at sister site Findependence.TV.

Although this is a 10-part series, each video can be viewed on its own and you can go back at any time to view what you may have missed. Here’s part one.

Penny wise, pound foolish

Have you ever noticed how we will line up for gasoline if the price drops just a few cents, an exercise that will usually save us less than than $10?  We look for price drops at the grocery store and can’t wait for Black Friday, Boxing Day or Super Bowl weekend to give a discount on that big screen TV.

Yet few of us know what we are paying when it comes to the fees we are charged for our investments and perhaps even fewer people seem to care. This is due in large part to the fact that our retirement may be so far away, but those fees can have a significant impact on the overall return.

The video looks at British pension funds and shows the dramatic impact of investment management fees of 1.5% and 2.5%: the higher percentage consumes a much bigger chunk of the investment returns. The parallels to Canada’s retail mutual funds should be evident.

After watching the video if you want to learn more, download the free guide, 12 Essential Ideas For Building Wealth.

“If you are serious about investing and building wealth the video documentary series ‘How To Win the Loser’s Game’ is a must-see. It’s excellent.” — Paul Philip, Financial Wealth Builders Securities