North Country Business FINANCIAL PLANNING January 2009 15
Experts see positive side of financial slump
By Karen Wehrstein When making investment lesser quality investments are should have a complete and
If you follow economic decisions, however, it’s impor- showing their true colours.” fully-integrated financial plan,
news, you might be feeling a tant to take into account your Judging quality is a complex that doesn’t just look at invest-
bit uneasy right now about the risk tolerance, which good task performed by research ment in the conventional way.
uncertainity in the market- advisors and planners deter- analysts at brokerages every You might be wiser, for
place. If you have investments mine as a matter of course. The day, Duso notes. But some instance, to cash in invest-
in stocks or mutual funds, you key factors are: investment principles always apply. ments and pay down the mort-
might already have taken a goal, age, income, net worth, “Do they have a sound busi- gage on your home, then bor-
nasty hit. investment horizon (the ness model, and is the compa- row against the home to invest
However, a bearish market amount of time you’ll be ny profitable?” she suggests again.
and contracting economy investing), and attitude finding out. “Does it have a He also advises looking at
aren’t necessarily completely towards risk. clean balance sheet without a debts.
bad news. You can weather the “Some people are very risk lot of debt? How has the stock “If you’re carrying a credit
storm, and even turn the down- averse,” says Ainger, “and we performed in the past, and how card balance at 18 per cent,
turn into a personal upswing. want to make sure they don’t does this compare to its paying it down is probably the
“The Toronto Stock get into an investment that peers?” best investment you can
Exchange was at over 15,000 causes them to stay awake at Duso also offers this rule of make.”
points in June 2008,” says Bri- night.” thumb: only take risks over the Whatever your attitude, it’s
an Samuell, branch manager fine. If you believe the market managed and designed to track Duso stresses the impor- long term. important your financial plan
and financial advisor at Ray- will recover, which it has, it is the performance of indices or tance of quality of stocks, “If you know that you’ll be totally individualized, tai-
mond James Ltd. in a good time to buy, because underlying baskets of securi- bonds and the stocks that make need the money in a short peri- lored to your goals and situa-
Huntsville. “Today it’s 9,200 – everything’s on sale. If you ties. What makes them an up mutual funds. od of time, then you’re better tion.
60 per cent of what it used to could find jeans for 50 per cent attractive option for some peo- “In the past, a lot of invest- off putting it in something that “I’d really caution that indi-
be. But people are still driving off, you’d go out and do it — ple is that they offer trading ments looked good, and did is completely secure, like a viduals work with a profes-
their cars, and doing their so why not invest in your flexibility and provide expo- well, because the market was GIC or a safe bond.” sional, to figure out what the
work. If you go to the banks RRSP?” sure to an entire market, index going up as a whole,” she says. Onley stresses that both best investment plan is for
the line-ups are the same; Part of the planning process or sector. “Now is a different time. The businesses and individuals them,” says Duso.
they’re still renewing mort- is to look at investment goals
gages, they’ll loan you money. in order to find an option that RBC DOMINION SECURITIES
The only thing that’s happened works for you.
is that if you have a stock or a “People need to understand,
bond, the only way to sell it is if they need a certain return on
offer 60 cents on the dollar.” their investment, stocks and
Introducing Carol Howorucha …
On the flipside, if people mutual funds may still be a
have money, they only have to very appropriate investment
Your partner for financial success
pay 60 cents on the dollar to for them because interest rates
buy it, Samuell explains. That, for other products are very low
David Fonseca, Branch Manager, is pleased to announce that Carol Howorucha has joined RBC
in his view, makes the stock right now,” says Steve Ainger,
Dominion Securities Bracebridge office.
market rife with opportunity branch manager of
right now. Huntsville’s Scotiabank.
A familiar name in the community, Carol has been in the investment industry since 1994. She
“If you sell now, you will But everyone has their own
focuses on holistic financial plans that help clients achieve long-term goals with disciplined
likely be selling low, when the ideas when it comes to finan-
objective is always to buy low, cial planning, including the
investment strategies.
sell high,” says Catherine experts.
Carol has achieved her MBA and several industry designations including the Certified Financial
Duso, an investment advisor “I wouldn’t be in a lot of
and RBC Dominion Securities mutual funds,” explains
Planner (CFP), Financial Management Advisor (FMA) and the Elder Planning Counselor (EPC).
in Bracebridge. “If they are Richard Onley of Onley &
She is also a member of the Canadian Institute of Financial Planners.
good quality investments then Company in Bracebridge.
they will likely come back. If “The market still may have a
ONE TRUSTED NAME JOINS ANOTHER
the investments are of lesser distance to go down; some
Carol is now able to combine her expertise and commitment to client
quality, and less likely to economists predicting a 15 to
recover, then you’re better off 20 per cent drop. The credit
satisfaction with the services of RBC Dominion Securities to provide
with selling those investments, crunch is going to hit credit
professional investment advice, retirement planning, business planning,
and putting your money in cards and commercial mort-
estate planning, tax planning and wealth protection strategies.
something that will participate gages as well.”
in the market recovery, when Because Canada experi-
Carol invites friends and colleagues to call her at her new offices at 705-645-2444.
that happens.” enced nothing like the US
In times like these, it’s housing bubble, which saw
Carol Howorucha, MBA, CFP, FMA, EPC | Investment Advisor
important to sit down with a prices double from 1999 to
financial advisor and plan 2005, whereas in Canada they Phone: 705-645-2444 | Toll-free: 1-800-430-8013 | carol.howorucha@rbc.com
accordingly, rather than mak- only went up 50 per cent, the
RBC Dominion Securities Inc. | 109 Kimberley Ave. | Bracebridge, ON P1L 1Z8
ing spur-of-the-moment deci- impact is less, but it’s there, he
sions. says.
“Freaking out is a bad Onley thinks highly of a
thing,” says financial planner type of investment known as
Richard Borland of Freedom an exchange-traded fund
55 Financial in Bracebridge. (ETF) and believes they will
Professional Wealth Management Since 1901
“There are many stats that take over from mutual funds in
show that people who’ve pan- the investment product market.
icked and jumped out of the ETFs are diversified baskets of
market and come back in have securities that trade like indi-
lost money, whereas people vidual stocks on major
RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member CIPF. ®Registered trademark of Royal Bank of Canada.
Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2009. All rights reserved.
who’ve stayed in have done exchanges. They are passively
“In these turbulent times get back to the basics”
Desjardins Securities
cordially invites you to a luncheon-meeting on
“A disciplined approach to investing that works”
Tuesday, February 17th, 2009
Rotary Centre for Youth, 131 Wellington Street, Bracebridge
12:00 p.m. - 1:00 p.m.
Please RSVP before February 13th to:
Lee Coles 645-9900 lee.coles@vmd.desjardins.com or
Tcherina Brand 645-8624 tcherina.brand@vmd.desjardins.com
* This event sponsored by SEI
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