The Latest News of Fransen Financial

Well it’s that time of year again when out of the blue everyone is talking RRSP (or was that TFSA?). From the local bank teller, to the sophisticated stock ‘jock’ broker, to the barber, to the soccer coach! Everywhere you turn someone has an opinion as to where YOU should be investing your hard earned money. Someone is always ready to tell you about the next big opportunity… a “flavour of the month” IPO or sector specific stock, or gold and dividends, or stable low yielding GIC’s…and don’t forget about under the mattress!

For whatever reason, February seems to be that time of the year when everyone is an expert. So with that being said, here are my top 10 questions to ask yourself before you hand over your hard earned cash, or take the advice of your best friend’s cousin’s brother (the landscape architect living on Salt Spring Island). Not that there is anything wrong with living there. Or being a landscape architect.

1. Do you have a clear understanding of your current financial situation?

2. What are your short term, medium term and long term goals?

3. What is your tolerance for risk (the V-word… volatility)?

4. What types of investments are best suited to help achieve your goals?

5. How will you monitor your investments as well as the managers who are managing your money?

6. How much should you be investing every month / year?

7. Do you have an investment process/strategy to stay on track when the markets go off track?

8. What type of investor are you? Are you a Buy & Hold or Market Timer?

9. How will you follow the markets and keep track of where the opportunities are?

10. Are you a DIY investor, or would you be better off working with an experience and qualified investment advisor?

From my experience of 18 (soon to be 19) years in this wonderful industry, the one common theme among the most successful investors is that they all stick to a process. Sophisticated investors – institutional investors, pension plans and clients of discretionary portfolio management services – all use an IPS. What is an IPS? An Investment Policy Statement is a written document that outlines the general rules for the management of an investment portfolio. It sets out the investment goals and objectives of the investor and describes the investment strategies that are suitable to meet those objectives. In my opinion, you are traveling without a road map, on cruise control to somewhere you may not want to get to IF you do not have a disciplined investment process in place.

So back to the time of year. Enjoy all of the RRSP/TFSA noise that seems to get louder at this time of year, and if you need any help/clarification in answering any of the above top 10 questions, you know where to reach me!

Until next time, continue to live for today, but be sure to plan for tomorrow!

AF

**This email is solely the work of Aaron Fransen for the private information of his clients. Although the author is a registered investment advisor with DWM Securities Inc., a DundeeWealth Inc. Company, this is not an official publication of DWM Securities Inc. The views (including any recommendations) expressed in this newsletter are those of the author alone, and they have not been approved by, and are not necessarily those of, DWM Securities Inc.

The holiday season is upon us and I wanted to take a moment to wish you all the best for the festive season and a Prosperous Happy New Year!

It is because of the relationships with friends and clients like you that I feel extremely grateful to be in a position to provide guidance and support during the good and bad times that the world throws at us.  It’s a responsibility I take very seriously, and one that brings me great satisfaction when I see people working towards their life goals.

I am looking forward to continuing to build and strengthen our relationship together in the new year.

Have a safe and happy holiday!

Aaron

Emotional Rescue

As English rocker Mick Jagger so nicely put it “I’ll be your savior, steadfast and true. Let me come to your emotional rescue”. Well I can’t sing, and I can’t dance, but perhaps I can come to your emotional rescue during these difficult times.

Investors are being assaulted by negative news, radio, online media and newspaper reports day in a day out. This can understandably lead to an emotional roller coaster; you’re up, you’re down, and you’re probably scared (and possibly screaming). The most tempting thing to do at this point is, well, something! Buy! Sell! Just do something, anything, to make it better!

Financial professionals have a term for that kind of rash action: “financial suicide”. A decision made in panic is usually a bad one, and one you’ll probably come to regret.

So What to Do?

The solution is to remain calm. Easier said than done, I know. But that’s why I’m here; to provide the advice that has seen hundreds of clients through tough times like these. This is what I’ve learned after riding through other rough periods:

• What goes up, must come down
• Buy low and sell high – now is not the time to sell
• The best investment opportunities occur after down periods
• Recessions “trim the fat” from the system

Not everyone suffers during a recession – stay calm and logical and you will come out ahead. As the English so aptly put it:

 **This email is solely the work of Aaron Fransen for the private information of his clients. Although the author is a registered investment advisor with DWM Securities Inc., a DundeeWealth Inc. Company, this is not an official publication of DWM Securities Inc. The views (including any recommendations) expressed in this newsletter are those of the author alone, and they have not been approved by, and are not necessarily those of, DWM Securities Inc.