Showing posts from 2013

How to achieve a 50% rate of return in 3 years

In my previous career as a financial advisor and developer of financial planning software, I spent over 15 years devising financial plans and advising clients on how to maximize the return on their investment while trying to minimize their taxes and any risks.    The following simple strategy will demonstrate how an investor could achieve a return of 50% in 3 years without taking on any additional risk. To implement this strategy we are going to use a Tax Free Savings Account (TFSA), an RRSP account and a Syndicate Mortgage. To begin the investor would invest $25,000 into a Syndicate Mortgage project using a TFSA. Everyone is currently allowed to contribute up to $25,500 into their TFSA if they have not yet done so. The Syndicate Mortgage in this example pays an 8% fixed return over the term of 3 years, which works out to a total return 24%. In addition, at the end of the term if the project were to meet a projected profit target then an additional 12% deferred lender fee

VA Portfolio Update

I have just updated the Value Averaging Model Portfolio's. There are 5 Model Portfolios to follow: VA Growth Strategy VA Internet Strategy VA Market Sectors Strategy VA Market Index Strategy VA Small Cap Strategy The portfolio's are all performing very well exactly as I expected, and they are meeting their annual target rate of return.  The  Internet Strategy  model has performed the best out of all the models and since December 2011 has produced a annualized compound rate of return of  25.4% .  Click here to see the performance in real time. While most mutual funds managers or portfolio managers are paid to try to beat a benchmark index, we take a different approach in that we try to meet or exceed  a set target rate of return  consistently on an annual basis. The benchmark for the model is therefore not an index such as the S&P 500 but a fixed percentage return. This return is based on the historical long term return for