Investment Diversification

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Investment DiversificationImagine the sinking feeling you get when you open your statement for your RRSP or your 401k. The market has tumbled and your investments have tumbled with it. What could be worse? At least you were invested across blue chip stocks in a variety of industries, Investment Diversification. When the market turns around these blue chip companies will be firing on all cylinders and your investments will surge. This is a good news scenario since you are well diversified and this is just a blip in the long term investment strategy. You sit back and relax.

Meanwhile your neighbor also just got his investment statement. Instead of the tried and true diversification, he put all his investment into GM or Enron. Not only is it down, it is gone. Sure you had some in GM as well and lost a fraction of your investment. But your neighbor had it all in, sure that the company would pull out and the share price would rebound. The lesson we have all learned in the last two years is that investment diversification is key to a long term strategy that will yield financial returns for our retirement.

What Do They Really Mean by Investment Diversification

There are numerous ways to interpret diversification. The most simple and straightforward approach is to invest across a wide spectrum of companies, healthy companies with good balance sheets and a proven business plan. The fly by night companies simply cannot pass the business plan test so stay away from them.

You might also pick one company, the one with the best balance sheet and revenue in each industry. Choosing companies across industries is a great idea to diversify and also protect yourself if one part of the economy takes a dive for a short period of time.

Another approach is to also add to the mix mutual funds that meet your investment strategy. Today you can choose from mutual funds that invest in bonds to precious metals to foreign to dividend stocks and more. This gets a bit more complicated. You will need to decide how much risk you want to take, whether you want income generating funds or growth type mutual funds. There are many different types and it is easy to diversify, however you should pay attention to the risk of each type. Bond mutual funds are considered the least risky , while precious metals might qualify as the most risky.

Bonds, both corporate and government represent another area to invest in. Bonds are rated from junk bonds to triple A. For most investors A , AA and triple A are the way to go. Essentially there is a good chance you will get your money back when the bonds mature.

Spread Your Money

Many of the banks have good tools to help you decide what type of investor you are. Can you tolerate risk or do you need something really secure? Do you want income for your retirement or do you want to take more risk and focus on long term grown? There are a few categories that I have found that they do not always talk to investors about.

First of all they are only selling their own investments. Some banks for example will only sell you mutual funds run by their bank. Some will not offer investments directly in bonds. Instead you can invest in a bond fund. My suggestion is that you spread your total investment between two different investment advisers. This way you will get advice from more than one source and you will build a little competition between them.

Set Diversification Limits

Another area that investment advisers may not necessarily discuss is setting limits of how much you have invested in a given area. Someone nearing retirement might lean towards bonds and income generating investments higher than others.  You might aim for 50% in bonds, 30% in stocks or mutual funds and 20% in GIC’s for rainy day needs. If the market starts to swing significantly, then only 30% of your portfolio is exposed. With proper bond laddering, interest rate changes will not have much impact on your bonds.

Bond Laddering

Bond laddering is simply splitting the maturity of your bonds across several years so that even if interest rates are low in the year your bonds are maturing, you only will need to reinvest a small portion of your investments.  Bonds are a great vehicle providing you stick to A rated bonds. Generally they pay reasonable interest rates, however most have what is called a “Call Option” . This means that the bond issuer can decide to recall the bonds. They will pay back the principle to you plus any accrued interest. Corporations will do this to reduce debt load and also if interest rates are now lower than the original bond value.

Investment Maximums

Another area to think about is the amount of money you will invest in any individual investment. Even though the interest rate on a bond is fantastic, or you are buying into a stock that is very low relative to its overall value, do you really want to place a large percentage of your investment at risk.Some people will set a limit of 10% of their total investments for each individual investment. Others will set it between 5% and 10%.

Many Ways to Diversify Your 401K or RRSP

As we have discussed there are many ways to diversify. We will list them here for your consideration:

  • Across investment vehicles e.g. bonds, mutual funds, GIC’s and stocks
  • Diversify across investment advisers
  • Across industries
  • Foreign and domestic
  • Set limits on the amount of any single investment
  • Set limits on the amount of any investment type

Depending on the size of your investment you may want to develop this model over time for your personal needs. What ever you do, never put all of your investments in one basket. If it sounds to good to be true then it probably is too good to be true.

Common Investment Mistakes

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Common Investment Mistakes There are six common investment mistakes that most investors make, which can have a significant impact on their overall savings and retirement income. Most people do not pay as much attention and time to their investments as they do to Monday night football or some other pastime. As a result, the following mistakes are often made contributing to less than stellar performance of their investments.

Common Investment Mistakes

These six mistakes include – Over Confidence; Following the Herd; Timing & Selection; Control of Your Investments; Paying too Much for Fees; Trust in your Adviser.

Over Confidence

Investing is a lifetime exercise since savings while you are young are being put away for your retirement. As a rule, we tend to make decisions based on our level of confidence as well as gut feeling and not sound business analysis. If you did well pre-technology boom in 2000, then you probably felt that the boom would continue and all you need to do is ride the wave. Warren Buffet was criticized for not getting on the bandwagon when the tech boom was taking off. His rationale was that he did not understand the tech boom and did not understand how many companies could sustain a long-term profit/income profile. In fact, he was ridiculed as being passe.

Well, it turns out that all of the overconfident people were wrong and he was right.  Many companies suffered badly when the tech boom crashed and many went out of business. Warren Buffet is still as successful as ever.

Following the Herd

Following the herd is also a common mistake that many investors make. They assume that someone must know what they are doing and if so many people are investing in this manner it must be a good thing. The Housing Bubble and the Tech bubble in recent times have shown us that following the herd is not always the right strategy.

Long-term investing in quality equities that can withstand the test of market volatility and turmoil is often the better investment strategy. Following the herd also often means that the market is rising and investors are flocking to get on board at a time when equities and mutual funds are over-inflated. This defeats the rule of buying low and selling high!

Timing & Selection

Many investors try to time their investments to catch an upswing in the market and sell as a downswing is starting. Some are indeed successful and numerous stories are told of massive profits of investors that have successfully timed the market. Unfortunately, the majority are not able to time the market well for a variety of reasons and as a result, do not make the massive profits that other investors are able to reap.

In fact, studies have shown that the buy-and-hold investor is able to make 2 % more than the investor who tries to time the market. In addition, buying selective high-quality stocks further increases the probability of doing well with a buy-and-hold strategy instead of timing your investments.

Control of Your Investments

Control of your investments is really a myth. The stock market follows its own random volatility which investors cannot control. Following a fad such as the Santa Claus rally is totally outside your control since many investors are trying to time their investments around the Santa Claus rally and as a result changing the timing and the shape of the rally.

Paying too Much for Fees

The fundamental message here is that your investment adviser is working to make his income and not yours. It is true that if you do well, then your reputation increases, however, they do not make money from reputations. Instead, they make money from trades, whether it is selling equities, mutual funds, or bonds. Every investment adviser makes money from more sales and that is one of the reasons they are constantly recommending additional investments for you to consider.

Doing a lot of trades may not always be the best answer. Trade commissions eat into your profits and enhance the income of your adviser. A buy-and-hold approach will significantly decrease the investment trade costs for you and improve your profit level from asset growth and dividend payments. Your adviser may not be happy with this approach and will no doubt try to sell you some additional investments. Review all with open eyes and what is best for you.

Trust in your Adviser

Trust in your adviser goes hand in hand with paying too many fees. Granted we are looking at our investment adviser for guidance and recommendations. However, these all should be taken with a grain of salt. Examine the benefit to you of every investment you are about to make. Your adviser may be motivated by the commissions he or she will get. Not necessarily whether it is the best long-term approach.

This is not to suggest that they are dishonest. However, when faced with recommending two different investments with perceived equal advantages to the inverter, the adviser will recommend the one that makes him or her the most money every time.

In Summary

While these are not the only mistakes investors make,. We can be confident if you are able to manage these six areas. Chances are your investment return will be higher on average than the indexes and most investment advisers.

A key question to ask yourself. Did your adviser recommend that you sell prior to the downturn in the markets in 2009? Or was he pushing investments as if everything was going to continue to grow? Perhaps that is unfair, but then that is supposedly what you pay them commissions for.

Home Sitting Basics

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Home Sitting BasicsThere are lots of companies that advertise that they will look after your home while you are away on vacation or business. But what services do you really need and what should you do to check these people out? This is the most common question that most people ask me about home sitting services. All you need to do is set up a web site and you are in business! Anyone can do that so you need to be careful. We will cover some of the Home Sitting Basics that you may want to think about.

There is much more to it than that. We encourage customers to read though the rest of this blog to fully understand what is needed.

Home Sitting Basics You May Need

The most import thing is to protect your investment and that is your home. You may have pets and plants and stuff. But the real investment that can make or break you is your home. Many people lock the door and away they go, not thinking about their home until they return from their vacation.

What they may not realize is that their insurance company has specific guidelines about what they require in order to maintain your property insurance. Some require that the home be checked every 48 hour. While others are ok with as long as a week if the water is turned off. If you do not make arrangements for this type of check, then your insurance may be become invalid.  You could suffer a significant loss because they will not pay for your losses.

This point is the most important of all the points we will discuss in this blog. Call your insurance company. Verify what you need to do to maintain your insurance on your home. Then make the appropriate arrangements. Your home sitter should be able to provide a record of visits to substantiate your claims!

Your home sitter should check that there is no water leakage from any source inside the home, that the heat is on and set to the level indicated by the homeowner and that the security of the home has not been jeopardized in any way.

Other Services You May ask of Your Home Sitter

Depending on the time of year, consumers who are leaving their homes may need other services to be performed. These include removal of newspapers from outside, checking the mail, forwarding the mail, watering the plants, flushing toilets once per week, feeding pets, watering plants outdoors, cutting the lawn, clearing snow, over site of other services provided by outside contractors.

These are just a few of the services required by a home sitter which may or may not be included in the price quoted for checking on your home. Consumers can discuss their needs and the home sitting company can help them understand the costs and alternatives they may wish to consider.

We once had a situation where the homeowner really did not want us in the house and did not want to give us a key, but she still needed someone to confirm that the heat was on and then call her if there was a problem. Our solution was for her to place an indoor thermometer on a chair so that it could be seen through the window. This allowed us to confirm that the heat was on, check security and confirm that all was ok for her and her home while she was away

What to Look for from a Home Sitter

Your most cherished possession is your home and no one wants a stranger in the home while they are away. Yet our insurance company wants a check completed on a schedule to maintain your home insurance.

Our recommendation is to deal with professional companies who act in a professional manner. For example, every time you hire a home sitter, there should be a contract. Both parties should sign as an agreement.

There should also be a detailed list of what needs to be checked and not checked. Many times we get the response. “Oh I did not think of that”! Go through a detailed checklist and noting the specifics of what will be done by the home sitter. Both the customer and the home sitter will have an excellent understanding of what services are being provided.

Finally there should also be a report that states dates and times your home was entered and checked, along with the services provided. Many companies can also send an email every time that the home is entered and checked. This is really about peace of mind knowing that your home is in good hands.

Always have a Contract

In summary, always have a contract. It should contain a detailed list of when, were and what will be provided by the service provider. If you would like to learn more about our services in Ottawa, Ontario, feel free to click on the link Ottawa Home Sitters.  You can also go to our home site were you can learn much more about Home security and steps you can take to protect your home while you are away on business or vacation. Home security systems, cameras, home sitting, neighborhood watch and much more. Visit our site today to learn about passive steps you can take to make your home less attractive to burglars. You can also learn how to protect your investment from the ravages of water damage.

Small Animal Traps

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Small animal traps for pests such as groundhogs, raccoons, squirrels, and even skunks can be humane and safe for the homeowner as well as the animal you are trapping. There are some interesting areas that consumers should be aware of if they are planning to employ a small trap to catch something that has been bothering their landscaping or gardens.

Small animal trapSmall animal traps come in various sizes, however, the one we bought was about 12 ” by 12″ by 36″ made out of wire mesh and needed assembly which was not too difficult. This particular small animal trap has a trip platform on the floor of the trap which when stepped on causes the door to slam down trapping the animal inside the trap. Any bait should be located at the far end of the trap so that the animal has to go far enough to step into the trip platform locking them inside. These are pretty easy to use and have a handy carrying strap located on the top of the trap for ease in carrying the small animal trap.

We purchased the small animal trap at Home Depot initially to trap several raccoons that had invaded our attic( more on that later), however, they can be used to also trap such animals as groundhogs and skunks or rabbits. I am not sure I would want to trap a skunk, since it is a bit tricky to open the door of the trap to let the animal out and who wants to get sprayed by a skunk!! Some people will place poisoned food inside the trap, however, we do not recommend that. It is a hard way to die and really is animal cruelty.

Small Animal Traps – Trapping Raccoons

Raccoons in the atticThe raccoons had invaded our attic so we thought the simple thing to do was to trap them, take them out to the country and let them go.  Well, we were able to trap the two young raccoons easily enough. There were two babies that were now old enough to travel and did not know the ways of the evil world and were easily lured into the small animal trap. We placed the trap on the roof near the entrance to the den and within a few hours trapped one after another.

The Parents are Smart

The parent raccoons were another matter. They obviously had experience and may have learned from the plight of their young, however, there was no way they were going to go into that trap. I tried peanut butter, cooked meat, vegetables, etc. We fed them a balanced diet, yet they would not go into the trap. In fact, they also stole the food. They are really smart and were somehow able to reach the food without tripping the trap door.

I even spread peanut butter along the far edge of the trap inside. They would reach through the side of the trap and scrape off the peanut butter as much as they could. But they definitely were not going to go inside that small animal trap. So I thought ok, the holes in the wire mesh of the trap are just large enough for the raccoons to put their paws through to get at the food I had placed in the trap. I bought smaller chicken wire and wired it to the outside of the trap where they were placing their paws.

Well, it worked in terms of the raccoons not being able to get at the food. However, they still did not enter the small animal trap. This was a real dilemma and I had spent $100 purchasing this trap and having no success. Well, it turns out that I was wasting my time. Even if I had been able to get rid of the raccoons, there are many dens in the area meaning there are more raccoons living in our neighborhood and once ours left more would just move in. After some research I found this to be pretty common.

If the Trap Will Not Work, What Were We Supposed to do

I was forced to abandon my trapping and call in the experts. They explained to me that the really only efficient way to get rid of them is to install a one-way door over the entrance to the den. Wait for two months to make sure the parent raccoons and the young have left. Then replace the trap door with permanent heavy gauge wire mesh to keep them permanently out. The two months seem like a long time. However, they are probably gone after two days and the experts are just making sure there are no callbacks.

We were also surprised to learn about the bylaws of our city and many others. They prevent the trapping and removal of raccoons. You can trap them, however, you can only legally take them a couple of blocks away from your house. Really, what good is that going to do? They will just return the next night and move back in. Also, other raccoons in the area can tell if a den is occupied or not. They will also move into the vacated den. So I had to agree that the best approach is to install the one-way door. Keep them permanently out of our attic.

They Left Quickly

They were gone in a matter of days. During the next winter I could track on our roof where they had attempted to re-enter without success. So I count Damage to roof by raccoonsthis as a successful exercise. One word of caution, you must allow the young to get out. The parent raccoons have been known to tear holes in the roof while trying to rescue their babies. Always make sure they all can get out. Who wants a dead animal stinking up their attic anyway. Yuk!

I was able to resell the small animal trap using Craig’s list. I did not get the full price of a new one. However, I was able to recover some money that I had spent. If you do decide to purchase a small animal trap make sure that it is a humane trap. Also that it is of solid construction. If you are successful in trapping a raccoon, these animals fight. They will claw and spit in an effort to get out and defend themselves

How to Get Rid of Raccoons

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Getting rid of raccoons is not easy. There are lots of deterrents on the internet that supposedly will tell you how to get rid of raccoons. Very few of them if any actually work. For example moth balls do not work , nor does the urine of dogs, wolves or other animals. In fact all that they do is smell up your house even more than the raccoons do. We tried all of these solutions when we had raccoons in our attic and believe me they did not work! We have an entire raccoon web site devoted to this issue. Check it out once you have read this post.

Raccoons in Suburbia

How to Get Rid of RaccoonsDo not buy all of the things that are advertised on the internet or even in the hardware stores. In fact, traps are not even worthwhile investing in. Most urban raccoons have seen it all. They have lots of enemies ( Humans) and have learned to avoid traps. We tried for a week and were only successful in providing them with food. Somehow they were able to get the food out without getting trapped in the humane trap.  They are smart! In addition in some cities, you are only allowed to take the raccoons less than one half mile away. They would be back the next night! This is why most pest removal companies ( at least the good ones) will recommend that traps are not the solution to your problems with raccoons.

Raccoons are used to urban smells and so urine from other animals, loud music and moth balls just do not work. They totally ignore these things and you are just wasting your time and money.

If you catch a raccoon in a humane trap and take it 10 miles away, another family is ready to move in. There are from 20 to 50 raccoon families per square mile in urban areas. Some areas have even more than that and they are always looking for a vacated den. Raccoons can tell whether a den is occupied or not. They are a social group, traveling in families from one den to another and typically will have 4 or 5 dens to choose from.  Your house is just one home of many in the area.

How to Get Rid of Raccoons

Raccoon family in the atticSo how to get rid of raccoons? The experts will tell you that first you must wait until the young ones are ready to travel outside the den. Mature raccoons are very loyal their young. In fact the young will stay with the parents until the next set of pups come along and then they are pushed out on their own.  If you block the entrance to the den in some manner, the parent raccoons will do just about anything to rescue their young including   tearing your roof apart trying to get back to their young. Even if you are successful in blocking the parents and they do not find or create another entrance, you will be faced with the  decomposing bodies of the young pups which will only increase the bad smell in and around your house.

Roof Damage from RaccoonsWait Until the Pups are Older

The correct approach as much as you may not like it, is to wait until the young pups are mobile and leaving the den on a nightly basis.

Once the young ones are ready to move outside of the den, install a one way trap door with heavy gauge wire that is strong enough to block any raccoon. This is the best and permanent method to get rid of raccoons from your home. Pest control companies will be able to properly install a one way trap door.

Once you are sure they are gone, remove the one way trap door and replace it with the same heavy gauge wire mesh. Screw nail it into the roof and the joists so their is no way for them to get in. Also block all other potential entrances so there is no chance for the raccoons  to get in from some other entry point. Use the same heavy gauge chicken wire to block these other entrances.

Caution About Repairing Raccoon Damage

Once you have figured out how to get rid of the raccoons, be very careful with repairing any damage caused by raccoons.  You will need to inspect the attic to assess how much damage has been done to the insulation and attic vents. Breathing the dust from dry feces can cause organ damage and death. The attic can be very hot, especially in the summer. The heat dries out anything that might be in the attic including raccoon feces or raccoon scat. In the dry air of your attic, these feces will break down. They turn into floating dust particles when disturbed and   float in the air for you to breath. Always wear a mask to prevent any exposure to these particles.

If you are uncomfortable doing this work yourself for obvious reasons, hire professionals to clean up the attic. Make sure they are aware of the situation so that they can protect themselves with the appropriate equipment. It may cost a bit more, but at least you will be safe and healthy. Be prepared replace the insulation and the air vents over the soffits if there is a lot of damage. For more information about raccoons, click here.

GCCI Services

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Web Site DesignGCCI provides a number of services for customers in many different industries including Web Site Design :

  • Program  Project Management
  • Business Plan development
  • Sales & Operations Re-engineering & Support
  • Strategic and Operational Planning
  • Operations Management and Implementation
  • Technology Selection and Evaluation
  • Contract Manufacturing Management
  • Budgeting and Financial Reporting
  • Web Site Design, SEO- Search Engine Optimization

We have listed a variety of services below in more detail. You can contact us to discuss these services by sending us an email. Feel free to contact us if you have any questions.

Email: contact@gccihome.com

Project Management

Complex projects require disciplined management. Scheduling project meetings, and change management requests, delivered on time and on a budget are a must for all customers. Let us help you scope your project. In addition, implement and launch your product or service. Please email us to discuss details for our project management services.

Request for Proposal Preparation begins with defining your company’s needs and business plans. Subsequently, turn this business direction into a series of detailed projects. In addition, select and manage vendors who have the best products and services. Detailing your requirements is the first step toward a successful project. Next obtaining valuable and complete responses is next. For instance, a professional RFP will challenge vendors to provide a better response. Please email us to discuss details for RFP or RFQ services. Complete documents prepared including financials, cover letter, and documentation.

Preparing RFP Responses Completing a response to a detailed RFP is extremely important to ensure the accuracy of your offer as well as meeting the requirements as outlined in the RFP. The process of collecting the information and packaging it into a professional company response is incredibly important to the success of your bid. Subsequently, deal with questions and provide detailed responses. Please email us to discuss details for our RFP response services. Complete documents prepared including financials, cover letter, and documentation.

Business Plans It is surprising how many businesses, large and small do not have a business plan to guide them as they evolve and prosper. The process of preparing a business plan is more important than the final product. Subsequently, modify the business plan as conditions and assumptions change. Please email us to discuss details of our business planning services.

Newsletters

Weekly and monthly newsletters, researched and prepared to cover various topics, Up to 600 words. Also, website references are included if required. We also include specific keywords provided by the buyer. Two revisions are also provided and are usually completed within 3 business days. Email us for a quote for your newsletter. Email: contact@gccihome.com

Document Editing

Professionally formatted edited document( MS Word documents & Powerpoint Presentations). Also with title page, index, header-footer. Rates are based on complexity and the number of pages. Email us to request a quote. Note that no additional content is added. Email: contact@gccihome.com

Professionally formatted document-title page, header-footer, hotlinks added if required in MS Word. Rates vary depending on the material. Our writers have a wealth of experience and knowledge in the fields of nutrition, biology, and engineering.

Web Site Design & Content

Web content pages using keywords provided by the buyer & covering various topics aimed at attracting search engines & surfers to a website. These articles will be SEO optimized. In addition, refer to our portfolio for examples. Prices are based on pages of 450 words. However, prices are negotiable based on the various attributes of the project. One revision is provided. In addition, all articles are cross-checked by Grammarly and Copyscape for spelling, grammar, plagerism, and keyword use before it is sent to you.

In addition, if you are a writer and would like to provide us with SEO articles, please send samples of your work in word format, 450 words long to us. Above all send us your best work. In addition, select a topic that fits with our website content. However, you can also add a link back to your own high-quality content to gain links.

If you are not receiving the traffic to your website that you need, we can help. For example, creating keyword-rich articles, increasing your links and other additional steps can significantly improve your traffic. Which can in turn increase sales. Most importantly we have a number of financial approaches. Hence we include flat rates as well as pay-per-click options that we can discuss with you to facilitate your traffic and sales. Therefore don’t hesitate to contact us.