Randy Yozipovic:

The families we work best with value relationships and personal service. And it's also important to them that they have a comprehensive financial plan. They want all aspects of their financial life to be integrated with the advisory team that they're going to work with.

Ian Munro:

But at the same time, the families we work best with would also rather be doing something else that they love instead of looking at a computer screen all day, thinking about their finances. They want to achieve their financial goals, but they don't want to be involved in the day to day minutia of getting there.

Randy Yozipovic:

So if you think of a financial plan as the foundation of the house or the blueprints and all the financial solutions or products you could use as the building materials, there's a lot of choices and we want to help you navigate them.

Ian Munro:

Yes, all houses use similar building materials, just like all financial plans should incorporate investments, tax reduction, protection or insurance and legacy building. But which materials you use, how much you use and where to use them needs to be specific to your house and your financial plan.

Ian Munro:

At R and R Investment Partners. You only get advice that is right for you and your family and delivered by someone who knows you, your goals and your preferences.

Randy Yozipovic:

Basically, the way we look to operate with our clients is the same way we would want someone to work with our own families if we weren't in the profession ourselves. So, if the families we've described that we help best sound like you, feel free to reach out, we can sit down, see if there's a fit and see if we can help you on your road and your journey.

Ian Munro:

Our mission, the reason we come to work every day is simple, we want to simplify your life so you can do what you really love.

Randy Yozipovic:

For some people, they love their profession and want to keep working. For others, it's running their business. And for others yet, they'd rather play or pursue hobbies. Some of you, on the other hand, want the freedom and time to be grandparents, to take care of your aging parents or to give to a meaningful charitable cause.

Ian Munro:

Whatever your true love, our aim is to help consolidate your financial priorities so you can focus on those other passions.

Randy Yozipovic:

One of the main ways we accomplish this is by helping you establish a comprehensive financial plan that combines your most important goals, then integrates investment, tax, wealth protection and legacy altogether under one roof.

Ian Munro:

And behind the scenes, our team is here to serve you, whether you need access to your money for a new car, a gift for your children, or a much needed vacation.

Randy Yozipovic:

Our team truly prides itself on being proactive. We're committed to learning about your needs, paying attention to your portfolio, and then reaching out to you when circumstances necessitate, as opposed to waiting until you come to us.

Ian Munro:

Every day, the families we serve, let us know the peace of mind that they've received from working with us has allowed them to live meaningful lives, free from financial complications. We are glad to play a small part and are very grateful and thankful for your trust.

Randy Yozipovic:

So, this is a story about a family that we helped on the retirement journey. They were longtime friends of an existing client that we'd worked with for over 20 years and they were introduced to us, which is how most new families we work with come about. It's through an introduction from existing family. And this couple was in the process of retiring and they wanted to get onto that next phase of their life. They had goals to consolidate and simplify their financial affairs so they could just kind of enjoy the retirement years and not be bogged down with the minutia of managing their finances. At the time, they were managing stuff on their own, they had a couple of different institutions they were at, they had stock options, a work savings plan, a company pension plan, all pretty typical stuff and they'd been balancing this on their own and never really had worked with a financial advisory team before. And that just made it even more exciting for us to connect them into our wealth management process and to meet with a financial planning specialist who could help them build a retirement income roadmap to give them the peace of mind that they were going to be okay.

              First off, we proposed a simple consolidated investment plan with five different, but complementary investment strategies. We also made sure that they had a couple of years cash for their near term spend and their travel needs as they came up. That way they'd have liquidity in case they retired in the midst of a market correction. We reviewed all their insurance needs to ensure the family was protected and we looked at their tax liabilities to make sure they were minimized. Most importantly, we analyzed their defined benefit pension plan and determined that with the reduction in interest rates that had recently happened, they would actually get a larger sum than they thought they would and they'd be better off controlling their own capital rather than taking the monthly pension.

              Finally, we set them up with online access to their plan, gave them customized reporting they could actually understand, and we set up a meeting and review schedule to ensure that they would have consistent opportunities to ask questions and basically just to know they were on track. Not only were we able to help them find clarity with the next phase of their life, this family's comfortable with the direction they're going financially, and that allows them to not just enjoy retirement, but to thrive in it and have the peace of mind that they were looking for.

Randy Yozipovic:

We had the fantastic opportunity to work with a couple who owned a successful business together, and they also knew they were getting ready to sell it.

Ian Munro:

Selling a business can be both an exciting and daunting process. Yes, there would be a large inflow of capital from the sale of the business. However, this would also trigger a much larger than normal tax bill.

Randy Yozipovic:

Knowing this, we created a financial plan for them that would not only help them generate a lifetime retirement income, but it would also allow them to creatively minimize tax by providing funds to charitable causes that they were passionate about.

Ian Munro:

Luckily, this couple recognized the benefits of giving. Yes, there are excellent tax benefits, but they were keen to experience the cooperation, joy, and family connection that would come from building a spirit of giving into their financial plans.

Randy Yozipovic:

After building this retirement income plan that reassured the family that they would more than have enough capital and income to meet their goals, we suggested they take 10 years of their planned giving and donate it in the current year to their own personal charity or foundation that we simply set up with a one-page form. Then we helped them invest the money in a disciplined, balanced portfolio.

Ian Munro:

The costs of the us were lower than setting up a traditional foundation, and the family received a significant tax deduction in the year that they sold their business.

Randy Yozipovic:

Aside from financial security, the family ended up being most excited by the giving plan and now, they even meet annually with family members to discuss their giving goals for the capital that they're going to give away each year. They often tell us how much they love this experience, and they're so glad that we suggested it. I would say if this story resonates with you and giving is something that you've been thinking about, connect with us, and we'd be more than happy to put a plan in place to see if this is a fit for your family as well.

Randy Yozipovic:

One of the most meaningful opportunities we have in our job is to walk through difficult financial situations with families who have recently experienced loss. One of our clients was the mother of a young family whose husband unexpectedly passed away, leaving everybody shocked and leaving her to take care of her two preteen children. Having never been involved with the family's finances before in a lead role, her husband's passing left her confused with where to even begin. Thankfully, we had a really good relationship and in our original conversations, she reached out and we re-started her plan. She'd been comfortable as the co-pilot in her family's finances, but now she was suddenly the pilot.

              Unfortunately, she's not alone. 80% of surviving women find a new advisor when their spouse dies, either because they never had an advisor in the first place, or they had no relationship with the previous advisor. They didn't feel a personal connection. They just felt it was their spouse's advisor. We highly encourage all of our married clients to have both parties involved in their financial plans with us. This is in order to ensure comfort and not confusion or anxiety if the unexpected happens.

              However, in this case, we built a new relationship with this family based on the plan that we did build together. So we were able to help her wrap her head around her financial life and create some sense of confidence in the plan that she had set up with her husband. We helped her collect on her insurance. We recommended debts be paid off and we created an income stream to fund the family's life. Most importantly, a new financial plan was completed with her input that showed that she and her children would be just fine and there was no need for her to go back to work. This was an incredible sense of relief to her. We are grateful to have been able to walk through this difficult time with her.

              If you find yourself realizing that you've been not as engaged as you would want in your financial plans, or if you would like to get your spouse more engaged, let us know and we would be happy to walk down that road together. It's critical to do this, to have financial peace of mind.

Ian Munro:

We know it's important for you to know where you're at financially and to have personal communication with the people you've trusted your finances to. So we follow three key principles in communicating with you. We make sure it's personal, customized and proactive. In addition, you'll always have online access to conveniently view your portfolio. And we also post monthly commentary to our R&R blog, so you feel comfortable with your financial trajectory and that the process is explained in context. So, you know if you're on track to hit most of your important financial goals.

              We also post mid-month blog commentary on real life issues, such as education accounts, vacation property, the keys to a happy retirement and so on, but we don't stop there. We also meet with you regularly, according to your preferences, whether it's in person, on video chat or on the phone, but most importantly as your needs and preferences change, so do we. We also know that life is anything but static and if you need anything around communication, please feel free to reach out to us at 403 260-0472 and we are always happy to help.

Randy Yozipovic:

Clients often ask how they will pay for our services or basically how fees work.

Ian Munro:

In similar situations, the payment structure for advisory fees can often be more complicated than it needs to be. Instead, we aim as simplify by being completely transparent about it costs for us to serve you. And also about any other cost you may have that do not involve fees or payments to us.

Randy Yozipovic:

For example, outside of our institution, a competing advisor might tell you that they are charging you 1% of the value of your portfolio annually. And in fact, it's the law today that they must disclose this information.

Ian Munro:

And what can, unfortunately, be confusing is whether or not that 1% is being charged on top of the investment products that already have an embedded cost of an additional 1%. That would actually bring the total cost to 2% annually, and that can be surprising if it wasn't what you were expecting. It's not that these in investment products are good or bad, it is simply that the lack of explanation keeps you from making a fully informed decision. And we all deserve transparency.

Randy Yozipovic:

For this reason, we've chosen to offer an all inclusive fee based on the assets we're managing for your family, which includes everything from customer reporting, proactive reviews, financial and estate planning reviews with our wealth strategists and all administrative support from our entire team. In addition, we do not charge fees on cash that we hold or GICs, guaranteed investment certificates. And we do not participate in hidden new issue commissions.

Ian Munro:

And because of this, you can feel comfortable that if we recommend an investment product that has a built in cost, that product and its worth will be fully explained, and the decision to invest in it will be completely in your hands.

Randy Yozipovic:

In our opinion, the problem we all have as customers is when we think we're paying one amount only to find a higher amount on the bill at the end of the day. We all want fair value for any fees we pay or any service that we sign up for. And our aim is to serve you in a way that makes you and your family feel valued, kept in the loop and well taken care of. Fee transparency is a big part of that.

Randy Yozipovic:

Turning your registered savings into income so you can have an enjoyable retirement is a simple and exciting process that our team would be happy to help you through.

Ian Munro:

For example, you may be curious how to turn your RSP into a retirement income fund or RIF as you're turning 71, or you may be leaving a job and faced with the question, should I take the pension or the lump sum payout option? We offer a simple process to help you decide the best option for your financial future.

Randy Yozipovic:

Let's start with converting your RSP to a RIF. In the year you turn 71, we move your RSP assets into a new account called RIF, no investments need to change and there's no tax implications, the only change here is the conversion of the account type and the account number, and the account changes from the purpose being to accumulate money inside of an RSP to a RIF, which is an account that's designed for you to take money systematically out of.

Ian Munro:

So this means at the year you turn 72, you now need to start making a minimum government-mandated withdrawal of 5.28% of your December 31st RIF value for the following year. So that equals $52,800 for every million dollars in your RIF account.

Randy Yozipovic:

You can take that payment in cash and have tax deducted at source by us, send it to Revenue Canada, or you can pay the tax the following year, which some people choose to do but often it turns out to be an unpleasant surprise the following year. You can even take the payment in kind, which means we take the same stocks and bonds you own in your RIF, move them to your non-registered account after the tax is paid. This is a great option for a lot of our clients who don't need the extra cash flow for their spending needs.

Ian Munro:

And it is also possible to convert your RIF before you turn 71, and this is a discussion we welcome to have in consultation with your accountant if it is determined that it's wise to take some money out of your RSP early at a lower tax rate.

Randy Yozipovic:

Let's switch gears a bit and discuss the crossroads you might find yourself at if you're leaving your job. And that crossroads is whether to take the guaranteed pension or to take the lump sum payout option with the potential to invest your funds on your own with us.

Ian Munro:

Though the benefits of a pension are obvious, the drawbacks can often be worth considering as well.

Randy Yozipovic:

For one thing, the next generation of your family will never see the capital after you and your spouse pass away. And another thing is, to consider, current low and declining interest rates have caused the lump sum option to now produce a higher value than it would've under older interest rate assumptions. This means that the lump sum option may be more attractive than taking the monthly pension.

Ian Munro:

So to help you determine the right option for you, we complete a full analysis where we can show you what rate of return you would need to earn to generate the same income as your pension, and ultimately keep control of your capital.

Randy Yozipovic:

In most cases it will be obvious what the best course of action is as part of your financial plan, and we'll be happy to help you implement the plan that makes the most fruitful financial sense for you. Our team is here to help you through this process, and we proactively reach out six months before the end of the year in which you turn 71 to complete your RSP to RIF conversion, and we also work with you on a pension analysis well before you leave your job.

Ian Munro:

These are just two of the ways that working with our team can help you not only predetermine the course of your financial future, but ensure that you thrive in it when the time comes.

 

Ian Munro:

When it comes to Tax-Free Savings Accounts and RRSPs, we always get asked, which one is best to use? And the answer we give is both. Let's explain. Many of our clients who have enough capital will already be using both, but they've often wondered the same question on behalf of their adult children who might not have the same capital yet. In that case, here are some thoughts. The Tax-Free Savings Account contribution is not tax deductible, but it grows tax-free. And when you spend it, it comes out of the account tax-free. And any withdrawals in a year will be added to the contribution room in the following calendar year. That is a very good deal.

Ian Munro:

You can put in up to $6,000 per year without losing the contribution room if you miss a year of contributing. On the other hand, an RRSP has contributions that are deductible and it grows tax-free, but the contributions that come out are taxed as income. It's another good tool to use and it can be helpful to know the difference. Another great strategy if you have contribution room in your TFSA and just got an influx of cash, take the cash, top up your RRSP, and top up your Tax-Free Savings Account with a lump sum, and start compounding your money tax-free faster. It's tools like these that we love to help you use smartly, to make your money work for you. Contact us if you have questions about setting up an RRSP, a Tax-Free Savings Account, or both.

 

Ian Munro:

We often get asked by the retired families we work with, if they spend too much or too little. In other words, they're wondering if they're going to run out of money.

Randy Yozipovic:                                   

It's a really complicated question, because what's too much for one family can be too little for another. And this topic can involve varying personal views on wealth, consumption, legacy, and stewardship.

Ian Munro:

What we can suggest is that a suitable spending rate should involve your goals for a legacy to give to your kids, as well as the giving you want to direct towards charitable efforts today and on death. Of course, this can be impacted by your beliefs on stewardship and money in general.

Randy Yozipovic:

In addition, this kind of decision making should really be done in conjunction with a well thought out plan or a retirement income roadmap to see the impact your decisions today will have on your future years.

Ian Munro:

As you can see you, the answer to this question is not only subjective, but it can be quite personal. And our mission is to work with you to determine what is right based on your goals.

Randy Yozipovic:

The next part of our answer is simpler, as it's merely a math question, and it's this, is your withdrawal rate or spending rate sustainable, meaning do you have enough capital and other income sources to fund your life for your expected lifespan with the spending you desire? Put another way, how do we make sure you don't run out of money?

Ian Munro:

So step one, we will run a retirement income plan to share scenarios that will make this decision making easier.

Randy Yozipovic:

In general terms, here's what we want to do. We want to keep two years of spending in cash, and then assume a rough spending rate of 4% of capital for the rest of the money you have. This is shown to be sustainable under historical conditions in a sensible, equity-balanced portfolio.

Ian Munro:

So with two years of spending in cash and two million dollars invested, a family could budget to spend $80,000 per year before taxes, in addition to any other income sources they might have.

Randy Yozipovic:

To be clear, the future is not the past. We need to always be flexible with our life and our financial expectations, but this guide is a really good place to start planning from.

Ian Munro:

So if the issue of retirement funds is keeping you up at night, please call us. We'd be happy to help establish a clear plan or update a current financial plan, so you feel ready for a full and satisfying retirement.

 

Speaker 1:

Clients always ask if we think we're due for a market correction? The answer is always yes. In fact, we always think we're due for a market correction. Here are so as to why.

Speaker 2:

Market corrections or fluctuations are normal and it's part of the investment cycle. They should not be feared, but instead planned for and exploited. In fact, this is rule number one for behaving well with investing. If you're skeptical, let us show you how.

Speaker 1:

The red numbers on this graph show the decline of the stock market in any given year and the year in which it occurred. What you can see is that market corrections happen all the time.

Speaker 2:

For example, in 2012, the US stock market pulled back 10%, but it finished up 13%. And in 2020, the COVID pull back, the market pulled back 34% and yet the year ended up 16%.

Speaker 1:

The media on the other hand would have you believe that recovery is always in doubt and that the next correction or this current correction will be the end of the world. And that's what puts fear in people's hearts and minds. Do yourself a favor and tune that noise out.

Speaker 2:

Instead know this, every market correction in history has recovered to new all time highs. And again, even in a positive year, the market sells off on average 14%. That's right. Even when the market ends the year on the upside, it scares many out at some point during the year if there was a sell off of some type.

Speaker 1:

The key to weathering these market corrections is really quite simple. Keep enough cash on hand for two years of your spending, own quality and stick to your plan, so you never have to sell at the wrong time. If you happen to be at the accumulation phase of life, add money during market corrections. And remember, regardless of where you're at in your life, all market corrections have recovered to all time highs. So just stay the course with the plan that you built that made sense.

 

Ian Munro:

Many of the families we work with often begin the investment process asking questions like, how much stock should I own? How much cash should I hold? And when should I put my money into the market?

Randy Yozipovic:

Sometimes they're worried about investing right now as they believe the market is going to experience a correction any day.

Ian Munro:

And this confusion can best be mitigated by following a basic three-step process, which can be illustrated by the three buckets example. The buckets can help you determine what monies are needed when and how to invest them accordingly.

Randy Yozipovic:

Bucket one is for cash you need to spend in the next couple of years. This is money we know that's going out the door, so this money should always be in liquid investments that do not fluctuate. Keep this bucket simple all the time.

Ian Munro:

Bucket two is for money you need in the next two to three years. These funds can be balanced, some in stock, some in bonds, or even some in income notes. They can fluctuate, but not as much as the broad stock market.

Randy Yozipovic:

Bucket three is your portfolio allocation geared for growth. This bucket should include discipline stock strategies, your work pension, your stock options, and the value of your private business and any investment property you have. This bucket should be expected to fluctuate, and when it does like the financial crisis in 2008 or March 2020 during COVID, you won't need to worry because your near term needs are met by bucket one, and it'll give you the peace of mind to let this bucket mature for the longer term.

Ian Munro:

And the result of this system means that bucket three can stay invested for the long-term growth, giving it time it needs to mature.

Randy Yozipovic:

The fact is, market fluctuations do happen. And though it's easy to say that we're going to be mentally prepared, the fact is we have to establish in advance how we are going to behave when we see that our portfolio moves down from a million dollars to 660,000 in March of 2020 during COVID. That was a 34% market correction pullback that also recovered extremely quickly if you stayed the course.

Ian Munro:

And a pullback like that gets your attention and the media will play off of your fear and you're more likely to act drastically if you haven't been prepared with bucket one and bucket two. You're much more likely to stay true to your plan if bucket one is full for your near-term needs.

Randy Yozipovic:

Following this three-bucket process always gives you enough liquidity to sleep at night, while at the same time growing your money for the future. That really is the only way to realize the real-world growth possibility of sensible strategies that are designed for long-term growth. It's critical to remember, nobody knows what the market's going to do in the short term, so following the bucket process will give you a sensible plan on how to allocate capital that will help you achieve your goals.

Ian Munro:

When should I take CPP? We are often asked this question and though the math answer is simple, the real world answer is personal and a little more complex. The math answer says that if you have longevity in your family waiting to take CPP until age 70 is best if you will live past the age of 82.

Ian Munro:

That is the age when the math favors waiting, but real life can sometimes complicate this answer. We would suggest taking CPP at 65 or 60 if it will help lower your portfolio withdrawal rate to a more sustainable level. Or if one spouse will still be in a lower tax bracket and this income will be taxed efficiently.

Ian Munro:

As well, some people just want their money from the government now before any permanent and unfavorable tax changes that are feared come to pass. The reality is most retirees spend more from ages 60 to 70 than they do from 70 to 80. So more money earlier may help. The best way to make this decision is to work with us, to create a simple retirement income plan that looks at all the income and tax factors in your life.

Ian Munro:

This is key as your life is different and unique from your friends. Once we have all of your factors and preferences, the answer is much clearer in particular to you. Call us if you want an update on your retirement plans and we will provide a customized path that works for you.

 

Randy Yozipovic:

In a world where cash pays near zero on GIC renewal, some families can find themselves shocked, upset, or both at how low rates actually are. That's why the plan we recommend to get the income you need includes two main principles. First, don't chase yield that is unsustainable. This is often the clear path to capital destruction. And secondly, remember, you still need cash for your near term spending needs, even if you're going to make near zero on it. The reason for this is simple liquidity lets you sleep at night, and that's really critical to letting the rest of your investments mature and flourish. If you begin with these two principles, you'll not only sleep better at night, but you'll have the ability to invest some of your capital for longer term growth and a piece that can be generating more near term income.

              The Income Note Strategy that we manage for the families we work with strives to generate 8% annually before fees in markets that decline up to 30%. What does this actually mean? Because everybody's fear is that the next market decline is right around the corner. It means that even when the market falls up to 30%, the Income Note Strategy will pay monthly coupons every month along that path, and this will provide a monthly paycheck. This can make a ton of sense to families who need an income stream, even in sideways or moderately down markets. Income Notes or structured notes are dead obligations issued by the major Canadian banks and are as secure as we deem the banks to be. In our plan, we scour all the banks for the best notes that we can find and we hold three to five diverse notes covering different sectors where the risk/reward is favourable. This strategy can also be tailored with higher or lower measures of capital protection for clients who have different risk goals.

              The Income Note Strategy is suitable for bucket two money, i.e., money you don't need for three to five years. Although the income is paid monthly in the near term, the capital could be tied up for longer. So we recommend that that's set up in people's minds. We combine this with longer term equity strategies for bucket three, money that can be invested for longer term capital growth. And as long as that cash bucket is set up properly in bucket one, then we know that all three buckets are properly structured for a family's financial plan. Please contact us if you'd like to learn more about why it's preferable to own this strategy in RRSP, RIF, or Tax-Free Savings Accounts as the income is fully taxable. However, it is advisable occasionally for people to also own them in non-registered accounts where they're trying to generate income from that pot of money as well. The bottom line is this should always be part of a simple financial plan before we implement any strategy. So feel free to reach out and we're happy to help on this.

Randy Yozipovic:

One of the biggest concerns from the parents we work with who have enough or more than enough is how are they going to pass this wealth onto their children without overrunning their lives? Well-intentioned parents, they want to assist their kids but they're cautious of inadvertently creating conflict with their help. What's an example? You might give a grandchild a large sum of money in a trust. This might seem like a great idea, but maybe you didn't talk to your kids about it first and it offends them. And you never thought that would be a consequence of this generous thing you were looking to do. Or you give an inheritance to your child, but you want to keep it separate from their spouse because you think this is a good way to have asset protection. On the one hand, this might be a sensible thing to do legally, but the offset might be that it inadvertently creates marital conflict because the spouse knows that they're not included in this gift.

              These things should be thought of well in advance of what the ripple effects of our decisions might be. So our goal is to help parents navigate this path in a positive non-stressful manner that helps them focus on really and truly what their ultimate objectives are. And one way we encourage the families we work with to address this issue is to start by thinking about the long range objectives that you actually have for your family. The non-financial ones.

              For many families, these things include amazing goals like maintaining family harmony, good relationships, teaching sensible handling of money without creating entitlement and cultivating a spirit of generosity as opposed to the spirit of I need more. What are some of the ways that we can actually accomplish these goals? For starters, we can lead by example because more about money is caught than taught. So a lot of that comes from do we value ourselves relationships more than money? By doing this we can also create a spirit of giving in our family right now. You could give an early inheritance in a small amount to assist family members who are moving toward worthwhile goals such as education, purchasing a home that they can afford to maintain, starting businesses or doing charitable work.

              It's also important to remember that one day we're all going to give it all away. So be open in your communication and have a goal of preparing your children for the inevitable. Think of training the next generation this way. How differently would we teach our children how to handle our money if we were going to give them all of our money when we turned 65 and then we would entrust them to take care of us for the rest of our life? Think about that for a second. Instead of giving your money away when you die, you were going to give it all to them when you're 65 and say now it's your job to take care of me.

              Boy, we would really work hard to make sure they were good stewards because our security would totally count on it. It's questions like these that we love helping our families find answers to. And it is a process. It's a conversation and it needs to involve husband and wife, both parties, where everybody really thinks through what their longer term objectives are. So please don't hesitate to reach out to us. We love coming up with creative solutions for helping you pass on your generosity and your wealth to the next generation, and we think you'll find it to be an extremely rewarding process.

 

Ian Munro:

It is possible to own top-rated investment funds and still not get wealthy, if we fall victim to our emotions and chase manias, or sell when we think the world is going to end. If you think about it, what we tell our kids is true. The only thing that we can control is our attitude. Likewise, in investing, the only thing you can control is your behaviour. That is truly where we should focus our limited energy, managing our behaviour during market fluctuations. Unfortunately, most investors focus their energy on things they cannot control, inflation, interest rates, government debt, last year's top 10 stocks, and the latest news story about the crisis of the day.

Ian Munro:

In addition, other investors often share their winning stories. Yet what people rarely tell you, are the harrowing stories about how they got swept up in emotion and bought or sold at the wrong time and lost real money that hurt them financially and emotionally. People bury those stories.

Ian Munro:

After being on the front lines and making our own mistakes, we are here to tell you that investor behaviour, like the foundation of a skyscraper, is the cornerstone of sensible wealth cumulation and staying wealthy. We are also here to remind you that true wealth comes from peace of mind, which is an attitude that must be learned. Peace of mind can be gained by recognizing and taking to heart this basic truth. Markets go up, markets go down, and markets historically always recover to new all-time highs.

Ian Munro:

Why does such a simple, powerful concept continue to be panned by most as irrelevant? Because humans are emotional. We are not computers. We like to think we make decisions just with our own heads. But our gut feelings often get in the way. We are prodded by the media daily, about worries of get rich quick schemes, followed by stories of fear, both of which continue to resonate the most, as unfortunately, no one wants to hear the boring truth about good investing.

Ian Munro:

What is the antidote to this itch to do something and the key to good investor behaviour? Establish a wealth plan, review it, and stick to it, and stay disciplined. Take a media fast, take the news with a grain of salt, and avoid reactive decisions based on fear or greed. Be a long range optimist. Things just work out and we don't have to understand how it's going to happen. It just does. And know this truth, if you feel you must do something right now that contravenes your wealth plan, walk away and let cooler heads prevail.