Accredited investors are always managing asset protection and wealth creation. The defensive strategy is to preserve wealth. The offensive strategy is to create wealth. However, simply preserving wealth is not enough because there is constant erosion of wealth if not actively managed. Your asset portfolio should be returning double-digit returns at the very minimum just to keep up. Canadians have experienced 20% inflation in this past decade. Although the pundits consider Canada’s annual inflation of 1.7% as an economic success, their metric leaves out energy, shelter, rent, and fuel prices. Seriously, have your living costs only increased by 1.7%? Know that the CPI is understated on purpose through methodological changes that underweight essentials like housing and food.
The information is out there, but it’s the interpretation that creates confusion. Banks started off by sheltering money for depositors by offering them interest while loaning out that money multiple times known as fractional reserve banking. This is the reason why you need to call the bank in advance if you plan to make a large cash withdrawal. Banks only keep a fraction of the money on deposit because the rest has been loaned out. Know that Canadian banks have no formal reserve requirement, instead they adhere to capital adequacy rules under the Basel III Framework ensuring liquidity for 30 days in the event of an economic shock. This framework is designed for institutional safety, not specifically to protect the retail investor.
Your job is to listen to advice, research the good ones, and discard the bad ones. The question you should be asking is what is their agenda? Is the ego of a promoter over projecting the success of an investment? Is the ignorance of another advisor misleading a client into the wrong investment? What specific type of expertise are these advisors using to formulate their advice? Not all advice is created equal. After all, advice is simply an opinion. It’s what you choose to do with that opinion that can make or break your financial legacy.
Sources:
% Change in Canadian Prices vs. 2% Inflation Target (2014 to 2024) : r/CanadaHousing2
Inflation Statistics in Canada 2025 | Inflation Facts – The Global Statistics
What_is_Canadas_inflation_rate.pdf
Accredited investors must actively filter financial advice to protect and grow wealth amid inflation and misleading metrics. Investors must question the motives and expertise behind advice, recognizing that ego or ignorance can lead to poor decisions that undermine long-term financial stability. Be discerning when you outsource your financial literacy to the appropriate subject matter expert.
Join us for a special opportunity to explore an exclusive investment opportunity for accredited investors. Meet the founders, gain insights, and have your questions answered in an engaging, relaxed setting. Connect with like-minded investors and expand your network. Feel free to bring along a friend or business colleague who may share your interest in private equity opportunities.
Thursday, August 21, 2025 from 7:00 -8:15 p.m. at the 203 Business Centre located at 5794 – 203 Street (2nd floor), Langley, BC
