Monthly Archives: May 2013

Odette Morin

We have experienced quite a run up in World Markets these past few months. Wouldn’t it be prudent to take some profits in the hope of securing the gains and be more defensive?

market timing

Wouldn’t be so easy to just get in and out when the news on the street says it is about time to do so.  If you go back a few weeks, and even a few months, you can see that the bearish sentiment was already on and yet, the markets have continued to rise.  Please do yourself a favour and read this analysis outlined by Ed Rempel in the Million Dollar Journey blog. 

In a nutshell, history has showed us that the market has been up much more often then down.  Since 1950, the S&P 500 has gone up 48 times and down 15 times of which only 3 times were down a lot i.e. more than 20% drops.   So, 76% of the time, in that 63 year period, the market was up. “The difficulty in correctly predicting a bear market, getting the timing right, and not missing out on all the up years, is why, in general, it is best to be a “buy and hold” investor. The key to successful stock market investing is to be fully invested during the 76% of years that are gains. The stock market has very reliably produced large gains long term. If you invested $1,000 in 1950, you would have $749,330 today (1). “Buy and hold” investors can get the long term gains of the stock market. Market timers are far more likely to get lower returns” – Ed Rempel 

So, that is why we advocate to simply buy and hold. It is much safer to buy quality investments, be diversified, and hold to participate in all of the up years rather than second guess and risk to be out when the market either rally or continue to rise.

Here is the full article which is worth reading in full.

(1) Standard & Poor’s

Odette Morin

Are you a money hoarder?


I am back from a week vacation with my wonderful family. My parents’ family house was just sold and we soon found out just how much of a hoarder my deceased father was. He kept everything…even paper groceries bags, all neatly piled and numbered!

Here is an article about a money hoarder. Yes there is such thing.  A money hoarder is often describe as someone who will save funds just for the sake of saving, always being afraid to spend.  It is also someone who wants to leave the funds in accessible savings and not invest them afraid of taking risks.  The risk of course is inflation.  Take a look here and find out how such as strategy or lack there of can be detrimental to your future financial well being.

Odette Morin

Canadians worried about retirement.


I read a lot these days about how unaware, unprepared and even worried Canadians are about retirement. There is no need to be concerned. Knowledge is power. There is lots of professional help out there ready to shed some light on the future and help you effectively plan. Find a good financial planner (like us!) and get a plan made for you. If you save and invest with the professional, the advise is included in the service. If you do not currently get thorough advise with your current adviser, change. You are paying for a service you are not getting. Find someone else you have a natural fit with who will be there for you as needed with every life event.

Here is what you need to do to plan properly and what your adviser should be helping you with. Cash Flow Planning will shed light on the future and alleviate the stress of not knowing what the future hold.

Read our previous blog post about the Art of Retirement Cash Flow Planning here Part 1

Cash Flow Planning Part 2

Don’t hesitate to give me feedback!


Odette Morin

How much of an estate should you leave to your children?

Those who have planned well, saved a lot and invested for retirement and have a home will most likely have large estate to leave their children. Is it a good idea to live large sums to your children? Should you consider giving part to charity? This is such a personal question and highly depends on your personal views but I would argue that it also much depends on your children’s personality.

When client ask, we usually discuss the importance of leaving the kids enough so they can have a nice start in life or retirement but not so much that they have no incentive to earn a living and contribute to society.  Making sure that  children know up front that you are planning to enjoy your hard earned money and that what is left as inheritance is a gift, not an entitlement. I like what Warren Buffet is doing which is to review his will every 5 years. Now that he knows that his children are self sufficient and successful on their own, he feels better about increasing the amount he will pass on to them. He also feels that large inheritance have better utility to society than any given individual.

Of course, most of us are far from being as wealthy as Warren Buffet and most will want to pass on the wealth to their family but if you are likely to leave a very large estate, give consideration to a responsible gifting strategy.

Here is the article regarding Warren Buffet’s estate plans.



Odette Morin

Five ways your brain can lead you to financial failure

brain and investments


  1. Selling low:  don’t let the emotion in the way.  When the markets tank, remember that the psychological impulse is to react.  Be rational and stay the course with your sound investment plan.
  2. Buying high: buying only when things are going well is also a mistake.  The psychological reaction this time is euphoria and impulse to make bold investments. Make sure to invest regularly, to take advantage to the dips and soften the peaks.
  3. Taking too much risk:  Invariably, investors feel confident when the markets are up and feel comfortable with high risk investments. High risk does not always equate high returns. It actually means that you have to be more tolerant to big swings.  Match your investments to your true risk tolerance and that will be just fine in any markets.
  4. Trading too much: Switching investment strategy too often
  5. Trying to look rich: this is my favorite!  Don’t try to look as rich as you wealthy friends.  Live within your means and look smart.


Here is the full article


Odette Morin