Q. I’ve managed to put away about a few hundred dollars to invest, but I saw a report recently that said the markets have been slow this year. Should I just leave my money in a savings account until conditions improve? – Nora J.
This is a common investor question! Slowing global growth, volatile/high energy prices, a weakening US dollar, concerns about rising interest rates and the current political uncertainty in Canada are all factors in the environment that create investor confusion and hesitation. Unfortunately, waiting to invest in the equity markets when one is more certain of the outlook can mean missing the most opportune times for capital appreciation of their hard-earned savings. Patient, long-term investors learn to take advantage of market dips to add to their holdings at lower prices. Remember the time-honored adage, ‘buy low, sell high’! Over time, a well-diversified portfolio of quality stocks and bonds will help you achieve your financial goals.
Q. I’m looking for a financial advisor who could assist me in investing RRSP savings into a socially responsible investment fund. Do you know any? – Mohammed A.
Finding a Financial Advisor:
The volume and complexity of investment products is overwhelming even for the most sophisticated investor. Ask family or friends for recommendations and consider asking other trusted advisors such as your Branch Manager, family lawyer or accountant, for their recommendations. Before selecting a financial advisor, interview two or three to assess their credentials, experience, investment philosophy and what services they offer. You also want to assess your comfort level and trust in the advisor as this is someone with whom you will work closely for a long time. A good advisor will:
• Develop a thorough understanding of your unique needs
• Provide innovative and professional advice and comprehensive strategies tailored to your goals, values and risk level
• Provide ongoing monitoring and adjustment of your investment portfolio based on changing market conditions or personal circumstances.
Socially Responsible Investing:
Many investors base their investment decisions on socially responsible investment criteria. The Social Investment Organization in Toronto maintains a database of financial advisors who are committed to socially responsible investing. See their website at www.socialinvestment.ca for additional information. Also, several fund companies are dedicated to investment decision-making based on social and environmental criteria. Examples include: Acuity Funds Ltd., The Ethical Funds Co. and Meritas Mutual Funds to name a few. The fund companies vary on their definition of socially responsible investing and the breadth of the screening process used for investment decisions. Meritas, for example, has a broad screening process that includes: companies committed to respect and dignity for all people, commitment to world peace and freedom from violence, global justice and rights, and environmental stewardship practices.
Bev Moir is a financial planner with The Moir Team at ScotiaMcLeod in Toronto.
Always consult a financial advisor before making decisions based on the advice above. The opinions stated are not necessarily those of Scotia Capital or The Bank of Nova Scotia.
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