by yncuniversity | Jul 27, 2023 | Investing
ON THE WAY TO WEALTH WITH ASSETS
How to Build Your Financial Portfolio
Thursday, July 27, 2023
Interested in building wealth? Curious about investments and assets? You’ve come to the right place. If you’re looking to secure your financial future, building a solid portfolio is a crucial step in achieving your goals. An investment asset is a financial instrument that individuals obtain with the intention of generating income, capital appreciation, or both over time. In this blog post, we will provide you with valuable insights and actionable steps to help you create a successful financial portfolio.
Step 1: Start with Clear Goals
Examples of fixed assets are your home, your cottage, or any vehicles, while examples of liquid assets are cash, or investments. Before diving into the world of investing, it’s essential to define your objectives. Ask yourself questions like, “What do I want to achieve financially?” and “What is my timeframe for reaching these goals?” Setting clear and achievable targets will guide your investment decisions.
Step 2: Assess Your Risk Tolerance
Investing comes with risks, and understanding your risk tolerance is essential for long-term success. Take the time to evaluate how comfortable you are with potential fluctuations in your portfolio’s value. This assessment will influence the asset allocation that best suits your risk appetite.
Step 3: Explore Tax-Advantaged Accounts
In Canada, there are tax-advantaged accounts such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs). These accounts offer unique benefits and can be powerful tools for building your financial portfolio. Understand the contribution limits, withdrawal rules, and tax implications associated with each account to maximize their potential.
Step 4: Research Potential Investments
Stay informed and keep learning about not only the Canadian market but investing outside of Canada as well – the biggest market in the world is American. A well-informed investor is better equipped to make sound investment choices. Research different companies, sectors, and investment opportunities that align with your goals and risk tolerance. Stay updated on economic indicators, government policies, and industry trends to make informed decisions.
Step 5: Consider Professional Advice
Seeking the guidance of an advisor can provide you with expert advice tailored to your specific circumstances. An experienced professional can help you navigate the intricacies of the markets, help you understand your risk tolerance, identify suitable opportunities, and suggest appropriate portfolio adjustments as needed. They can also guide you on how to take advantage of Canadian tax strategies and investment vehicles.
No need to memorize all this information. YNCU is here to help. YNCU offers registered products such as TFSA, RRSP, RESPs, and non-registered accounts as well. Within these products you can be invested in an array of different types of investments such as savings accounts, term products, and mutual funds through Credential Securities or Credential Asset Management Inc. Click HERE for more information.
Regardless of what you decide to do with your money, assets are important to long term financial stability. Assets build your net worth whether that means for future goals or current lifestyle. Building a financial portfolio as an investor requires careful planning and continuous effort. By setting clear goals, diversifying and staying informed about the investment markets, you can lay a solid foundation for your financial future.
For all your general financial inquiries and how you can plan out your financial goals, come talk with an advisor at your YNCU branch!
by yncuniversity | Jun 1, 2023 | Fraud Prevention
THE EVOLUTION OF FRAUD
March 22, 2024
In an era where technology is advancing at unprecedented speeds, the dark underbelly of fraud is not far behind, constantly morphing into more intricate forms. Gone are the days when a quick pickpocket or a forged signature were the pinnacle of deceitful practices. Today, we find ourselves in a labyrinth of sophisticated scams that often go unnoticed until it’s too late. Let’s delve into how these deceptive practices have become a chameleon in our digital world.
Digital Deception: Cyber Fraud’s Metamorphosis
The advent of the internet brought with it a new playground for fraudsters. Phishing emails that once cast a wide net are now laser-targeted, masquerading as legitimate communications from trusted institutions. These cyber con artists craft convincing narratives using information gained from social media and other online footprints, leaving individuals and businesses vulnerable to attack.
The Alarming Sophistication of Financial Fraud
Financial fraud has also undergone a transformation, becoming a hydra with many heads. Where counterfeit currency was once the extent of financial deception, we now face complex wire fraud, CEO impersonations, and cryptocurrency scams. Each iteration is more nuanced than the last, leveraging cutting-edge technology and psychological manipulation to siphon off millions.
Identity Theft: The Silent Predator
Identity theft, once a cumbersome process involving physical documents, can now be accomplished with just a few keystrokes. Fraudsters use sophisticated software to hack databases, pilfering personal details to create false identities or take over existing ones. The repercussions of such thefts can haunt victims for years, as they struggle to reclaim their financial stability and personal reputation.
The Role of Artificial Intelligence in Fraud Evolution
Artificial intelligence (AI) has been a double-edged sword in the fight against fraud. While it aids in detecting fraudulent patterns, it also serves those with malicious intent. AI-powered
bots can mimic human behavior to bypass security measures, and deepfake technology can create realistic audio and video to deceive even the most discerning eye.
Staying One Step Ahead: Combating Evolving Fraud
As daunting as the challenge may seem, there are strategies to combat the evolution of fraud. Staying informed about the latest scams, employing robust cybersecurity measures, and maintaining a healthy skepticism can serve as our shield against this ever-changing threat. This is where YNCUniversity comes in. YNCUniversity has loads of digestible information on fraud prevention for everyone to read, save, and share. As individuals and as a society, we must remain vigilant, adapt quickly, and educate ourselves continuously to protect our assets and our peace of mind.
If you know, or think, you have been a victim of internet scams, phishing or cyber-attacks, or your banking information has been compromised, we highly suggest you do the following:
– Contact your financial institution immediately and report it to your local police
– Report the incident to the Canadian Anti-Fraud Centre or the Competition Bureau at 1-888-495-8501
– Be sure to gather all information about the suspected fraud
– Report the incident to the financial institution that transferred the money (if applicable)
– Notify the website where the fraud took place (if applicable)
– Place flags on your accounts and check your credit report
Don’t forget to follow YNCUniversity on Instagram and Tik Tok for more Honest Money Talk tips and YNCU on Instagram, Facebook, and LinkedIn.
by yncuniversity | May 25, 2023 | Financial Literacy
STARTING A SMALL BUSINESS
The Dos and Don’ts
Thursday, May 25, 2023
Being your own boss has crossed the minds of many, but entrepreneurship isn’t for everyone. Alongside the ability to work around your own schedule, be your own boss, spearhead the process of turning this passion of yours into a steady stream of income, and all the other benefits to working for yourself, it’s not always an easy road to travel. Starting your own business requires a lot of preparation, caution, courage, and patience. You must recognize that the success of your business depends on you, and this may come with small failures along your journey, but it can also become the best decision you ever made.
YNCU is dedicated to supporting small businesses in our communities and we want to see you succeed in making your lifelong dreams a reality. We’ve put together a few dos and don’ts to help guide you towards starting a small business.
THE DO’S
DO have genuine intentions. Businesses require a strong foundation built on a set of values and principles in order to succeed. If you create your small business with the sole purpose of making money and nothing else, the lack of purpose and direction will quickly become apparent to your clients/customers, employees, and vendors. It goes without saying that a profit has to be made but ensure your honest reasons for building this business extend beyond financial gain.
DO your research. Understanding your competitors is important for any startup. Take some time to look into similar businesses in your market. Try to get insights into how they operate, if they failed and why, who their customers are, their marketing practices, what area they’re servicing, etc. The more you know about your competition, the better prepared you are when it comes time to penetrate the market with your million-dollar idea!
DO take risks. Starting a business is a risk in itself, and almost every decision you make in this process will have some kind of risk attached. However, with the research you have gathered about your competitors, industry trends, and your target market, you can make calculated risks. Every successful business has taken risks to get to where they are, so don’t be afraid to do the same.
DO get your finances in order. No matter what, entrepreneurs need a tight financial plan outlining everything from how much you’re investing, what the return on investment might look like, and how exactly you plan to make a profit. Also be comfortable with the fact that you may not be making a profit in the early days. YNCU has experienced advisors that can help ensure your first financial steps are the right ones. Click here to speak to a YNCU business advisor to get started!
DO everything by the book. Proper bookkeeping, paying your taxes, abiding by rules and regulations, understanding policies, contracts, etc. – ensure you’re on top of it all and if you’re ever beginning to fall off, seek help from a professional. Get everything in writing and always remain professional.
DO take time to get to know your clientele. Understanding your target market is essential when starting a new business by establishing a solid customer base that expands over time. Go beyond demographics and market trends. Dig deeper to find out who your customers are, what their needs are, and what their current problems are. What are you offering to meet their needs?
DO make yourself known to platforms who highlight small businesses in your area. Check out your local Chamber of Commerce, connect with groups on social media, and take advantage of networking events happening in your community.
THE DON’Ts
DON’T get a big head. Being kind and humble when you work for yourself is important in building strong, trusting relationships with your customers, suppliers, and staff. These relationships are needed to efficiently run your business, which means having the right attitude can be what makes or breaks your small business.
DON’T take your opinion as fact. Welcome constructive criticism with open arms. Be open to new ideas and advice, especially from those with hands-on experience. That being said, remember what your goals are and what you envision for your small business. Being open-minded doesn’t mean you have to do anything that steers you away from your overall vision.
DON’T underestimate the cost of the startup process. Anything you’re budgeting for, ensure there is extra room. Don’t underestimate your ‘competition’. Understand that brand loyalty exists even with small businesses. Don’t underestimate the amount of time you will be putting into your business to ensure its success.
DON’T ignore the current market. Keep on top of new industry trends, new products, new competition – be aware of everything that’s happening that may affect your business. Staying informed can give you that competitive edge that sets you apart from the rest.
DON’T take it personally. Growing your own business from the bottom up can lead to strong emotional ties to your “baby”. It’s important to remember that every entrepreneur experiences rejection, be it from investors, customers, partners, etc. Learn to keep your emotions (and your pride) separate from your business and don’t beat yourself up over things you can’t control.
Now go ahead and start that business plan! We have additional resources to help you get started or expand an existing small business. To learn about our business banking and service options, click here.
For all your general financial inquiries and how you can plan out your financial goals, come talk with an advisor at your YNCU branch!
Don’t forget to follow us on Facebook, Instagram, Twitter or LinkedIn for more honest money talk tips!
by yncuniversity | May 15, 2023 | Investing
INVESTING IN A GIC
Monday, May 15, 2023
Invest with no risk! A Guaranteed Investment Certificate (GIC) is a great option for every type of investor. Available in short and long terms, your original investment is 100% protected from the fluctuations of the market – so you have nothing to lose and everything to gain.
HOW DOES A GIC WORK?
Think of it like a savings account – the money you hold in your account earns interest over time. The difference between a savings account and a GIC is that you need to leave your money in a GIC account for a specified period of time. When you purchase a GIC, you are agreeing to lend the financial institution your money for a specified term, ranging anywhere from 30 days up to 5 years, in exchange for earned interest. Typically with GICs, the longer the term, the better your rate of return, and the more interest you earn. At the end of the term, you can choose to either cashout your investment with the interest earned, or reinvest into a new GIC.
WHEN IS A GIC A GOOD FIT?
Since GICs have a fixed rate and are not influenced by the stock market, they are considered one of the safest investment options for Canadians. Here’s when investing in a GIC may be beneficial for you:
- You’re new to investing or feel uneasy about investing in a volatile market.
- You’re saving for a specific short-term goal and want to earn a bit of interest until you’re ready to use your savings.
- You’re retired or nearing retirement and will need access to your money soon.
- You struggle with meeting your financial goals and want to remove the temptation to dip into your savings.
- Your child will be pursuing post-secondary education soon and you’re looking for a low-risk investment option.
- You’re beginning to teach your children about investing and looking to show them savings growth over time without the risk.
HERE’S WHAT YOU NEED TO KNOW
- Most GICs pay a fixed rate of interest for a set term (6 months, 1 year, 2 years or up to 5 years).
- Interest on your GIC can be paid monthly, once a year or on the maturity date, depending on the product.
- You can hold your GICs in registered investment accounts (RRSPs, RRIFs and TFSAs).
- Unlike other investment products, GICs have no direct fees associated with them. Times where you may face a fee would be if you withdraw your investment from a non-redeemable GIC prior to the maturity date or if you transfer a GIC from a registered account (TFSA, RSP, RIF) to another financial institution.
- Redeemable GICs give you the option to withdraw your money prior to the maturity date, but typically pay a lower interest rate than originally offered if you choose to do so.
- Cashable GICs are similar to redeemable GICs in that you can withdraw your money prior to the maturity date, but only once a predetermined “locked-in” period (30 days to 90 days) has passed.
- Your deposits are insured through the Financial Services Regulatory Authority (FSRA).
Ready to be proactive about your financial future?
Grow your investments, without the risk. Whether you’re saving for your dream vacation, planning for retirement, or just looking to diversify your portfolio, YNCU is ready to help you grow your money with a variety of terms and products to suit your unique investment goals.
Choose a GIC with YNCU to benefit from our:
- Competitive Rates – Higher rates than redeemable investments and savings account options.
- Tax Benefits – Take advantage of tax benefits when you invest a GIC into your TSFA, RSP, or RIF account.
For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!
by yncuniversity | Mar 28, 2023 | Fraud Prevention
March Is Fraud Prevention Month In Canada
Do you know how to stay protected?
Tuesday, March 28, 2023
Knowing the signs and learning how to protect yourself from fraud is your best bet to stay safe.
First and foremost, be wary. Don’t be afraid to hang up the phone, ignore an email or close your internet connection – and please, never be fooled by the offer of a valuable prize in return for a low-cost purchase.
Because of how integrated the internet is in our lives today, scams, hacks, identity theft and many more dangers on the internet are real and all too common.
When checking your EMAIL, something may be phishy if:
- You don’t recognize the sender’s name or email address.
- There are a lot of spelling and grammar errors.
- The sender requests your personal or confidential information
- The sender makes an urgent request with a deadline or the offer sounds too good to be true.
- Also watch out for pop ups, attachments, hidden links and spoofed websites.
To prevent yourself from E-TRANSFER INTERCEPTION, you can:
- Register for auto deposit.
- Always select secure security questions that only you and the recipient would know the answer to, and would be hard to guess.
- Be aware of unexpected transfers.
- Be careful with social media. Giving too much information on social media and using that information in passwords or security question answers can make your accounts an easy target.
PASSWORD SAFETY is paramount for staying safe online. Statistics show that over 50% of Internet users use the same password for all or most of their accounts and sites. It is an easy mistake to make. With so many sites asking for a password, users tend to pick just one that they can remember. However, by doing so, you’re placing yourself in danger of having your personal information becoming insecure. When creating a new password, make sure:
- It is at least 12 characters long.
- It contains uppercase, lowercase, numbers, and symbols.
For example, instead of JoanneandBruce1971 use J0@nn3@ndBruc31971 to make it more complex and harder to guess. During a cyber-attack, a hacker can easily expose potentially millions of user passwords and information. When you use the same password for all your accounts, then hackers can gain access to any account they deem valuable, including your bank account!
Letting your browser remember passwords can be risky. When you do, it’s easy to view actual passwords. This is especially important to remember for websites with sensitive information such as CRA and Financial Institutions. For better security and greater convenience, use a dedicated password vault instead.
For PHONE SCAMS, you must remember there is no prize, you will not be arrested, and, if it’s legitimate, you will not be rushed or required to keep it a secret.
- Avoid answering calls from unknown numbers and don’t return calls from numbers you cannot identify.
- Never give out sensitive personal information over the phone if you cannot verify their legitimacy.
- Never send payment in any form to someone on the phone who you don’t know. A sure sign of a phone scam is when the caller asks for payment by gift card, bitcoin, or a money wire.
SHOPPING ONLINE is faster and more convenient than ever. Unfortunately, where there’s a fast flow of cash, there will inevitably be people looking to steal it. Do your homework! Don’t give out valuable information or make a purchase without really inspecting the vendor. How trusted is the company, and are you making your purchase through appropriate channels?
Always remember:
- Protect yourself from dumpster divers! Bank statements, credit card bills, cheques, old tax returns and any other statements that have important personal information should be shredded when you’re done with them.
- Check your credit report annually and report any issues right away. Better safe than sorry!
- Until you know a business is 100% legitimate, never disclose your financial information, credit card numbers, driver’s license number or any bank information.
If you suspect you’re a victim of fraud, contact your Financial Institution immediately and report it to your local police. If you’re a YNCU member, contact our Service Excellence Centre at 1-888-413-YNCU at the first sign of fraud. Know that you are not alone. We are here to help!
You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501. Help us prevent fraud by sharing these tips to look out for with your friends and family!
