Leveraged investing1 is defined as borrowing money to finance an investment. You are familiar with the concept of leverage if you've ever:
Both individuals and companies use leverage as an investment strategy; a company with a lot of debt is considered highly leveraged.
Canadians, like many nationalities, have a home bias when it comes to investing. The majority, if not all of their investments, such as RRSPs, real estate, mutual funds, segregated funds and businesses, are in Canada and are tied to its future economic growth.
These Canadian investments could see reduced returns in the future, however, due to a growing shift in the balance of economic power towards China and the East and away from the U.S. and Western countries.
Investors who start saving at a young age automatically have one of the most powerful assets on their side: Time. To get ahead financially, young adults should beware of some of the most common pitfalls discussed below that can all too easily sabotage a financial success strategy.
