• The mudslide trailer is designed to turn your tractor into a dump truck • Haul away gravel, rocks, tree stumps,
concrete slabs and more • Perfect for on the job site • Has incredible floatation over typical rock trucks and
on-highway tractor trailer units • Sizes from 18 yards to 30+ yards
1.866.576.8099
www.mazergroup.ca
Call Denny for
more details:
Risk can be managed away
It would be nice if there were a way to remove
all risk from investing. Many brilliant
minds have created models that purport to
do this. The most famous failure of model
risk is Long-Term Capital Management,
which hired a number of Nobel laureates to
produce a model that eliminated risk. The
result was a spectacular meltdown of the
firm that almost took the entire banking
system with it. More recently, the financial
crisis of 2008-09 exposed the flaws many
large firms had in their risk management.
Risk can be reduced by proper diversification
and long timelines but beware if someone
promises they can eliminate it entirely.
All of the upside, none of
the downside
If only it were possible to have investments
that were immune from markets and investor
psychology that only ever went up
in value. Trouble is, it’s not. The insurance
industry, in particular, has created many
complicated investment products with expensive
guarantees that tout the elimination
of any risks. Be sure you understand
what is guaranteed, what is not, as well as
the true and total costs.
No-cost investments
Really? Banks, insurance companies
and money management firms are very
much profit driven. Investment sales people
are compensated on the assets they
bring to their firms. There is always a cost.
Sometimes it is buried or hidden. If the
sales person is not completely candid and
open regarding all fees, costs, commissions
and mark-ups, you should run, not walk, in
the opposite direction.
We can achieve all of your
goals … if we just get a
higher rate of return
The truth is the only certainty is the amount
of money you save. Reaching for higher returns
means more risk. More risk does not
FINANCIAL FILE
“If the sales person is not completely
candid and open regarding all fees, costs,
commissions and mark-ups, you should
run, not walk, in the opposite direction.”
guarantee higher returns – it guarantees
more risk. If you are changing a variable in
your financial projections, it better be one
you can control, like saving or spending.
When you are considering an investment
or choosing an advisor, look for clarity, candor
and complete disclosure of all the costs
and possible outcomes.
Chet Brothers is founder of Regina-based
Brothers and Company and is the only
Saskatchewan financial advisor named to
the Top 50 Canadian Financial Advisors
ranking by Wealth Professional magazine.
saskheavy.ca | Quarter 1 2016 | Think BIG 55
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