TK Dale Wealth Podcast

September is a new month. 

It is when the kids go back to school. It is when summer vacations are over.

New quarter, new sales goals, finalizing/freezing of expenses.

It's also a time when we close up the cottage, pull in the docks, put the boat away, bring in the summer outdoor furniture and much more.

I talk about doing the same inside your financials, estate and other areas with some simple tasks.

I also hint at the Accelerator.

I talk about a market update, nationalizing of a couple Chinese financial institutions and expectations.

I also update you on my 175km run along with a story about Courtney Dauwalter who did the Maob 240 and beat second place by 10 hours!!!

Check out other podcasts at tkdale.com/podcast

Be sure to subscribe and share on your favorite venues such as iTunes, Spotify, Google Play and Stitcher.

Setting the alarm for 2am is ambitious.
Hitting the snooze until 3am is embarrassing.
Running for three hours before the family gets up is an achievement
Get out of the comfort zone because what lies on the other side is pride!

This is my prep for my 175km run on Sept 14, 2019.
New podcast that bridges the gap between physical and business up.
Episode 048.
tkdale.com/big
#TrevorsUltraRun
#run #ultramarathon #ultrarunning#earlymorning #canthurtme#davidgoggins #newmarketontario#auroraontario @davidgoggins@jesseitzler 
Thanks for sharing Goggins story. 
I live every day to the fullest and try my best not to make excuses anymore for anything.

I can’t stress enough how getting to know your numbers is crucial.
There are neither good nor bad numbers... they are just numbers.
Are they what you want them to be?
Either way, always be trying to increase your revenue.
Are you employed?
Connect with people on LinkedIn regularly.
Post something on LinkedIn.
Go out to lunch with someone from your industry.
When was the last time you took a course to improve your skills and make you more marketable?
Don’t hide behind age or time limitations.
If it suits your company they will fire you if they choose.
Stay ready and be on the offence.
You are a business just like the one you work for.
Work to take care of yourself and provide an economic moat.
tkdale.com
#financialfreedom #jobsearch#makingmoney #retire#financialadvisor #mortgage #family#putyourselffirst

As a financial professional I am often asked about investments, insurance, debt, taxes and legal issues.

While I am well versed on most issues I have limitations to the extent that I can advise.

But at what point should you contact each professional?

Having quality advice is incredibly important but each has a limit. 

As a financial professional I can advise how RRSP's, RRIF's, TFSA's, non registered funds, insurance contracts, debt and segregated funds, stocks, bonds and more affect income but when it comes to how much in taxes you will have to pay then an accountant is best to use.

When you want to run scenarios about income levels you will need to consult an accountant.

I can advise on how an RRSP, RRIF, TFSA, insurance contract, joint assets and more affect someone's estate but when it comes to the legal nuances as it relates to the different people affected and how to plan for your individual needs then a lawyer is most important.

Even better, when you have questions I like to coordinate with the accountant and lawyers so that I can best understand how what I'm doing is affected by what you're doing with the accountant and lawyer.

I am happy to come to an in person meeting or be on your phone call when dealing with these other professionals.

This past weekend I set out to run from midnight until sunrise. It was a long run but I was up for the challenge... or so I thought.

I was camping at Mosport Racetrack (now Canadian Tire Motorsport Speedway) and you camp right beside the track itself. It's a really fun experience and to watch the superbike motorcycles race all weekend is a lot of fun.

The time with friends, some who I haven't seen in two years was also great.

My goal was to get there on Friday night, setup, hang out and when everyone else went to bed, I would put on my running gear, grab some water and food and run until sunrise.

12:30am: Everyone was off to bed and I left for my run.
2:30am: I start getting a little tired
2:45am: I start to get bored... really bored but the risk of running across an animal prevented me from enjoying some music on my headphones as I wanted to maintain maximum situational awareness.
3:00am: I said to myself one more lap
3:30am: I said one more lap
4:00am: I told myself the story that I would be in better shape and more fun to be around if I had a couple of hours sleep rather than running right until everyone got up.

I had a great weekend after that but was left wondering why I was so quick to give up.

Did I lack the commitment to complete what I set out to do or did I set the wrong goal that wasn't anchored with enough feeling.

It's one thing to set goals while you're in a good place looking into the darkness, but when you're in the darkness, it is easy to start looking for easier times.

It made me wonder where else in my life am I doing this?

Am I choosing to save enough? Am I able to be disciplined enough to say no to the spend? Do I have a good enough reason to say no?

What are my financial goals? Are they important to me? When I find myself on a budget and working towards something is that enough for me to stick to the plan?

How about that trip we're going on early next year. Have I attacked all the items that need to get done with the same speed that I do everything else or am I procrastinating and looking for an easier route?

My question to you is: Did I lack commitment to run until sunrise or did the goal of running until sunrise not have enough meaning?

You may already know that I'm doing a 175km run around Lake Simcoe on September 14 & 15 2019 and this is the prep for it.

Until next time,
Trevor Dale, CFA
Founder, TK Dale Wealth Management
Creator, MillionDollarMortgage.com

So many times we operate day to day on the status quo. It is a survival mechanism that makes our lives easier. 

We look to build on what we do so that we don't have to rethink every single move.

We build big things off of this including our current jobs, spouse, family, finances and where you live.

It is scary to change these foundations in life that bring us safety, security and comfort.

Today I'm announcing that I will be running a 175km around Lake Simcoe, Ontario, Canada.

This is something that gets me outside my comfort zone and forces me to change both physically and mentally. 

Building the ability to run for 24+ hours is not just a physical feat. It is a mental feat.

There is nothing exciting about a 5 hour run. At some point I just want to sit down and watch some TV.

But this translates over to work and everything else. 

Paying attention to people for long periods of time when social media is training me to have a short attention span helps.

It helps with my clients, it helps with my family and it helps when I'm working on a project and it's going to take several hours of sitting behind a computer.

Before when sitting that long was possible but not preferred, now the time flies until the project is complete.

This isn't about a physical feat as it is about changing what I thought was possible. It's about not holding myself back anymore. It's about realizing my full potential one day.

In this podcast I talk about the rocking chair method to make decisions.

I talk about some of the headwinds and struggles I face from the people closest to me.

This podcast can be found on iTunes, Spotify, Google Play, Stitcher and tkdale.com.

Please subscribe and share with one person if you haven't already done so.

Annuities are something that people know are out there, may know a little about the basic framework but don’t know much more than that.

Let’s dive into them for a moment before we go into:

• Recap of podcasts
• Annuities
• Market overview
• Using segregated funds for creditor protection
• We used to give negative equity mortgages not that long ago - we’re still really close

Recap of Podcasts: tkdale.com/podcast

1. Introduction of MillionDollarMortgage.com - Check out the bio film about me on the website!
2. Leaning on resources - how to move quickly and bring in other team members to your finances.
3. Estate planning and your portfolio
4. Real Estate Opportunity
5. Individual Stocks vs Funds
6. Hedge Fund Strategies: Market Neutral
7. Hedge Fund Strategies: Merger Arbitrage

Annuities:

Annuities are an insurance product that guarantees a stream of cash flows.

Basically you pay a lump sum once upfront and then the insurance company will pay a predetermined amount every month. There are annuities which you can pay into over a number of years but we’ll use the lump sum version in this illustration.

Your age and gender is a factor and if it is joint with your spouse their age and gender will be a determining factor too. 

These variables will affect how much income you can generate from the upfront payment (called a premium). The older you are, the less time the insurance company will have to pay the funds and as a result will provide more beneficial rates. This reduces their risk.

Should you invest all of your money in an annuity? Usually no.

Financial planning would dictate that you would use an annuity to cover off your required expenses. This acts like a bond portfolio.

Growth and inflation can be factored in through a holding of stocks. If you want the estate benefits of an insurance policy then segregated funds might be a good way to go however if that is not a concern, and neither is creditor protection, then the growth and inflation can be gained through other avenues such as direct holdings in stocks, ETF’s and mutual funds.

Will you lose all of your money if you die? You can often set up a survivor with an annuity and also have a death benefit so that remaining funds will be paid to a beneficiary.

Do you have questions about annuities? Give me a call.

Market Overview:

The tale of two markets continues with the Canadian TSX (up 0.15% in July) lagging the US S&P500 (up 1.31% in July). Both markets had sell-offs on the last trading day which suppressed returns for the month. Economically speaking the data this month continued to push the importance of a US strategy.

Major concerns remain to be trade uncertainty and tariffs that may hit corporate earnings more and that it causes business investment to continue to hold back. Corporate expected earnings had been adjusted downward and as companies continue to report, many are beating the lower bar that has been set for them. Many of the trade uncertainties have been priced in until a newsworthy event moves the markets.

This month the US Central bank lowered rates as expected by 0.25% as an insurance policy against soft international economics but indicated that it was happy with the pro

Trevor Dale, CFA discusses one hedge fund strategy called merger arbitrage.

This is what the name would have you assume, it is a strategy around mergers. Further it is trying to take advantage of the pricing discrepancies within the merger, called arbitrage.

Essentially this is when one company tries to buy another company.

This strategy would involve buying the company being acquired and shorting the company doing the acquiring.

Usually the company being bought will be bought at a premium to the price prior to the news being announced.

As a result of spending money and often diluting the stock, the acquirer's stock price will fall usually.

Therefore if you can own the stock that goes up in value and bet against the stock price that falls then there is a profit to be made.

The strategy becomes very smart in that in an all stock deal they will buy the target company and short the appropriate amount of acquirer stock so that when the deal goes through they are left with no stock at all and just the cash profit.

Then because there is little market exposure they can leverage up the strategy and move on to the next one.

This leverage amplifies both gains and losses.

The advantage in this strategy is that it is fairly market neutral and doesn't swing as much with the overall market as there is a long/short strategy at play.

The risk is that the deal could fall through and prices move in the opposite direction than anticipated.

Also due to the leverage, this will enhance losses but also any gains.

The overall economy also affects this as the busier the market is with mergers and acquisitions, the more trades there are to utilize inside this strategy.

One thing I didn't mention is that when using this strategy is speed is critical. The faster someone can get into a trade, the better price they usually get, before the market realizes more of the price.

My question to you is what is the one thing that you're taking away from this information?

This podcast can be found on iTunes, Spotify, Google Play and Stitcher.

The write up and video can be found on tkdale.com

Please note this is not meant as individual advice and is delivered for educational purposes only. We recommend you seek the help of a licensed professional prior to taking any action.

Most people know the word hedge fund but very few actually know what the term means and even less know how the strategies work.

In this episode Trevor Dale, CFA, Founder TK Dale Wealth Management and Creator of MillionDollarMortgage.com, outlines the strategy and how it makes and loses money.

This strategy involves hedging out the market exposure and hoping to take advantage of a perceived mispricing of individual stocks.

If the market goes up or down, that should be irrelevant to the strategy and we talk about how this is possible.

You are both long and short a stock that are expected to be in the same sector or industry with similar characteristics but are valued differently for some reason. 

Trevor talks about how a long position and short position and how to use them together in what's called a pair trade to construct this market neutral strategy.

This episode is available on iTunes, Spotify, Google Play and Stitcher under the TK Dale Wealth Podcast and at tkdale.com

There is an age old debate about whether to own an individual stock or a fund containing multiple individual stocks.

There are many merits to both.

In this episode I lay out the difficulties for each, strategies, a specific ETF that I use and how I go about investing and selecting investments.

Sit back, relax and enjoy this episode!