We continue to warn our clients that if things sound too good to be true, they probably are! Anytime there is an offer to pay an interest rate that is substantially higher than what a current 5 year GIC is paying, there has to be a “risk premium” that you need to be willing to accept in order to achieve it…which could include a loss of your capital. This usually is not being fully disclosed in the “pitch” when it’s being sold. The following article covers off another local investment that appears to be in trouble and supports our thesis.
Please note that this article is provided for information purposes only and should not to be interpreted as specific personalized advice. Any opinion or advice expressed in a linked site should not be construed as the opinion or advice of Robin Muir or David Fracy. You should consult an appropriate professional regarding your particular circumstances.
The article is available here.