why DoEs Cash flow invEsting work in toDay’s ‘nEw rEality’? Accelerated Wealth Building: When markets are frustratingly flat, cash-flow investments have a profound effect on improving your rate of return. When markets are rising, the cash-flow effect compounds returns. Portfolio Protection: When markets slump, cash flow mitigates the drag on your portfolio. Although prices may re -treat, you can count on regular cash flow to provide support. Reduction of Emotional Decisions: When markets are volatile, a stream of regular cash flow will help you think twice about selling an otherwise solid in -vestment. When share prices weaken, the income as a percentage of the share price actually increases. This fact provides a sup -portive floor to share prices as more buy -ers will rush into the investment, thereby bidding its share price back up. Diversification: As your investments begin to generate cash, and those regular cash deposits accumulate in your portfolio The evolution of pain management Radical new science revolutionizes trans-dermal healing NEW PharMAX™relief contains natural oils and extracts, and is powered by Delivra™, a revolutionized trans-dermal topical delivery system that penetrates deep into the skin, providing relief directly to affected areas.* • Alternative to oral medication • Potential to inhibit 5 pain pathways* • Contains natural oils and extracts • Non-greasy, non-sticky for variable glide and workability • No strong odours • Airless pump minimizes oxidation “Deliver medication right through the skin with a cream – deeper than ever before” Joseph Gabriele PhD Molecular Pharmacologist Specialty: Signal transduction pathways of disease states Creator of Delivra™ trans-dermal delivery system * These statements have not been evaluated by Health Canada. These products are not intended to diagnose, treat, cure, prevent any disease. Supporting You. Supporting Your Patients’ Wellness. For more detailed information and chiropractic resources: www.pharmaxdc.com | 1-800-263-5861 throughout the year, this cash can be used to purchase new investments at prime op -portunities. Staying on Track: When your portfolio is earning a regular paycheque, this reminds you that you are continually being paid for the use of your money. When you purchase an income-pro -ducing investment, you are effectively buying an income stream. Dividends from good companies are predictable, and often increase over time. Cash flow investing is similar to own -ing a rental investment property. The property’s market value will increase and decrease over time, but the rental income is largely fixed. The landlord’s success is at -tributed to his ability to find a good-quality, long-term tenant. In my previous articles, I’ve recom -mended real estate investment trusts (RE -ITs), utilities, preferred shares and gold (which acts as a hedge against the insan -ity). How have these assets fared? Including cash flow, Canadian REITs have returned 14.7 per cent this year, utili -ties 12 per cent, preferred shares 5.1 per cent, and gold an astounding 26 per cent. An equal weighting in each would have provided you with an impressive 14.4 per cent, compared to a loss of 7.4 per cent for the TSX. Investment strategies do not have to be fancy, but they need to be well thought out and they must provide solutions in the new reality. As is the case with most areas in life, if you are looking to maximize your suc -cess, it is best to surround yourself with a qualified team. Not only is this true when it comes to your personal health, but it is also true when it comes to your financial health. A passionate team of financial pro -fessionals will equip you with the tools and knowledge you need to make informed decisions that enhance your portfolio re -turns and, ultimately, your quality of life. • Canaccord Wealth Management is a division of Canaccord Genuity Corp, mem-ber -– Canadian Investor Protection Fund. The views in this article are solely the work of the author, and not necessarily those of Canaccord. The information herein is drawn from sources believed to be reliable as of November 4, 2011 (Canaccord Genu-ity, TSX, Dynamic Funds), but its accuracy and completeness is not guaranteed, nor in providing it does the author or Canaccord assume any liability. www.canadianchiropractor.ca 40 • CANADIAN CHIROpRACTOR | DECEMBER 2011
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