Investing 101

Familiarizing yourself with the basics of investing or taking the time for an Investing 101 is an important step to take before your first leap into the market.

Here are a few Investing 101 points to keep in mind….. 

What’s a portfolio and what goes in it?  portfolio_icons2A portfolio is generally made up of traditional assets such as fixed income, equity and money market instruments. It can also include other financial components such as: real estate, commodities and currencies.Печать What is diversification and why is it important to include in your portfolio? Imagine that you have invested in only one kind of equity fund from one country and due to market conditions that fund plummets.  As a result, you lose a significant amount of your investment. This situation may have been averted – or your loss may have been reduced – if you had a wide variety of investments in your portfolio from more than one geography.  Any investment, however, has an element of risk, which an investor is exposed to and must bear if they wish to make potential gains. The idea is to reduce that chance of risk and maximize the return within the agreed upon limits of an investor’s risk tolerance and financial objectives. How is a portfolio managed?

  • Do-it-yourself: You select and manage all the securities that make up your portfolio, either on your own or through a discount brokerage such as Q-Trade, which can provide pre-approved portfolios. Just bear in mind that in this instance, advice is not provided.
  • With the guidance of an advisor – Once the advisor has an understanding of your risk tolerance and financial objectives, they advise you and only act on their advice with your explicit approval.
  • Full management by a discretionary manager, such as Cumberland Private Wealth Management Inc. This arrangement permits an advisor to automatically buy and sell securities on your behalf and act within the parameters of your risk tolerance and financial objectives.
A discretionary manager typically possesses significant investment experience and enhanced educational credentials. He/she also satisfies special licensing requirements.

As a new dentist with a steady and growing income, you have numerous and competing options on how to achieve your financial goals. The good news is our non-commissioned Certified Financial Planner® professionals* at CDSPI Advisory Services Inc., are happy to answer your questions at no cost and with no obligation. We are here to help. Call: 1-800-561-9401 or Email:  *Restrictions may apply to advisory services in certain jurisdictions. Financial planning and advisory services are provided by licensed advisors at CDSPI Advisory Services Inc. Information on this site is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice.