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Growing Your Wealth Your Way

We are able to provide a wide variety of investment choices including mutual funds, ETFs, stocks, and bonds.

We are an independent investment service. The investment decisions we develop with you are not tied to any directive or incentive to promote specific products. We assist you to design a portfolio that aligns with your objectives.

Worry less and live more

Live LifeOne of our objectives is to help you worry less and live more, especially when it comes to your financial life plan and your investments. How can you possibly do that when you hear about Canadian soldiers killed while performing their duties on home soil? Or when we learn about the unthinkable violence of rebels in the Ukraine and the Islamic terrorists in the Middle East? Or when we see photos of Ebola sufferers in Africa? This all contributes to a growing uneasiness. It’s important not to allow this to overshadow your life or negatively affect your decision-making, especially pertaining to your investments.

Recently we’ve been noticing more concern over volatility in the financial markets, more fear about market declines, and we are having more discussions about when/how to “time the market”.

How can you worry less?

  • Turn off the news!
  • Focus on those things in your life that you can control.
  • Reaffirm your values – what is truly important to you? what do you want to accomplish in your life?
  • Clarify your investment philosophy.

 

How can you live more?

  • Turn on some music.
  • Spend time with family and friends.
  • Book a trip to Maui.
  • Brew a cup of java (or green tea if that’s your choice), sit down in your favourite oversized chair, put your feet up and take a few minutes to read this article published by Edgepoint Wealth. This is from their 3rd quarter, 2014 commentary, written by portfolio manager, Geoff MacDonald. There is a lot of investment wisdom in this article. I encourage you to take the time to study Geoff’s views and make sure you aren’t being influenced by the myriad of sales and product pitches that turn individuals into short-term speculators (gamblers) rather than long-term investors.

Geoff MacDonald summarizes the outcomes of a study published by Charles Schwab & Co. in December, 2013.The study presents the experience of 5 hypothetical long-term investors, who each received $2,000 at the beginning of each year for 20 years ending in 2012. (Excerpt from page 3) 

Peter Perfect was the perfect market timer. He invested in the market every year at the lowest monthly close. Each year he was somehow able to determine this date.

Ashley Action simply invested her money as soon as she received it.

Matthew Monthly divided his $2,000 into 12 equal portions each year and invested at the beginning of each month. In other words, he was the dollar-cost averager.

Rosie Rotten had horrible luck. She invested her $2,000 each year at the market’s peak. She happened to hit the market high every year for 20 years!

Larry Linger left his money in cash every year, always thinking there’d be a better opportunity to invest in the future when stock prices were lower.

Read More: 2014 Q3 – EdgePoint Commentary

 

The information in this commentary is for informational purposes only and not meant to be personalized investment advice. The content has been prepared by Jan Fraser, Life Aligned Investing of Aligned Capital Partners Inc. (ACPI) from sources believed to be accurate. The opinions expressed are those of the author and do not necessarily represent those of ACPI.

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