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Diversify Your RRSPs While There is Still Time!

How COVID-19 eroded market values in just a day

COVID-19 has had unprecedented effects on stock market value, and with it, hard-working Canadians’ RRSPs are now possibly in jeopardy. Two weeks ago, we observed a single-day drop of 10% to 12%, marking the third-largest fall in stock market history.

With a drop like that, is your retirement fund in jeopardy?

In the last 15 years, large income funds and retirement funds have transitioned large portions of their investable assets into the Private and Alternative markets. Why? They were looking for the same returns the stock market was providing without the volatility.

Since then, the Canadian Pension Plan has allocated 44% of their investable assets into infrastructure, private equities and real estate.

The Ontario Municipal Employees Retirement System (OMERS) put more than half of their investable assets (57%) — half of people’s retirement funds — into private assets. In fact, 20% of OMERS’ overall funds are invested in private real estate. Why? While real estate is considered illiquid or “the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value,”¹ it is for this reason that it is not as volatile as the public/stock markets where the value of your investment is determined by the sentiment of investors that day, week or month. Real estate tends to lag the stock market by five to eight quarters, making this asset a slow-moving, yet predictable asset.

This is the reason private REITs are so enticing to those looking for peace-of-mind in their retirement investments.

Join InvestPlus REIT President and CEO Domenic Mandato as a part of our exclusive weekly webinar series, where he will be diving into how the coronavirus disease is affecting investors and how you can position yourself during these uncertain times. Titled Diversify Your RRSPs While There is Still Time, this webinar session will talk about what our REIT is investing in during this financially-tumultuous time, show how RRSPs can be compromised by being all invested in the stock market and explain how InvestPlus REIT is responding to COVID-19 implications.

Register now for the InvestPlus REIT webinar, Diversify Your RRSPs While There is Still Time, debuting Wednesday, April 1st, at 6:30 p.m. MST. Find out how COVID-19 can be an acute financial problem, not a terminal one.

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. IP REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted more than $90,000,000 in buildings comprising of 21 locations in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at $40,020,000 and comprised of 139 rental units and approximately 90,000 square feet of rentable area. Schedule a discovery call with InvestPlus REIT today.

InvestPlus Keynote Speaking @ ACRE Real Estate Investor Summit in Calgary

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