Investing Small Business Profits... need advice please.
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[{"id": "ihqjp5i", "text": "Index funds are certainly a good approach to investing, although I don't think that's all that typical for our industry to diversify outside of real estate.  Assuming your core business is in fact the ownership of real estate that is.\n\nThe caveat is that you probably want to diversity into a few different areas not just one single global ETF.\n\nYou might also diversify into Canadian equity indexes because there is no currency risk and its likely to be your benchmark (if the Canadian market does really well and the global market doesn't they will not be happy with you).  One thing that comes to mind is that in many situations real estate prices can be at least somewhat coorelated to stock indexes so if the purpose is to have dry powder to invest in these bad times / have extra capital in case of bad times then you might want to have a less risky Canadian treasury bond component.   That way you don't get stuck selling stocks at distressed prices to make a capital injection into a distressed real estate market.", "replies": [{"id": "ihql9me", "text": "Thanks for the response -- I appreciate the insight!\n\nThe company does still invest in real estate and in fact the purpose of the 10-20 year investment timeline is to \"save\" money for more real estate purchases without losing to inflation with cash sitting in a bank account.\n\nManaging the owner's expectations is certainly going to be a part of this investment journey as they are not at all well-versed in the equities market. And XEQT is weighted heavily in USA (45%) and Canada (24%) so I'm hoping that covers the potential differences in returns from the Canadian market and other global markets, but your point is well taken, thanks again.", "replies": [], "depth": 2}], "depth": 1}]