22 - North Shore News — Wednesday, January 26, 2000

meg!

| Specialists to

a

Lou Bien

fier tips

ai tax planning seminar

GET top tips on financial planning Feb. 12 when North Shore News

presents Money Matters — Financial Forum.

School, investment specialists will help get you prepped for RRSP and tax season
berween 1 p.m. and 3:30 p.m. at Carson Graham school. Tickets are only $5 and can be

purchased at the North Shore News office or at the door.
Speakers will include:

@ Chris Carter

An investment executive with ScotiaMcLeod Inc. in
North Vancouver, Chris is also the daily business com-
mentator on the BCTV Morning News, and a regular
conuibuting columnist to the North Shore News busi-

Mess pages. Check

<www.askchriscarter.com>.

CHRIS Carter

@ Michael Campbell .

. British Columbia's most respected business analyst is
best known as the host of Money Talks — Canada’s top-
<crated business show, heard. across the country on the

.. WIC radio network.
. ‘Campbell is the chief business analyst for BCTV and
the national Canada Tonight broadcast, and the business
analyst for. the Vancouver Sun, for whom he writes the
"lead business column three times a week.

-- Campbell is also the author of the national bestseller
* Cooking the. Books with Mike: Michael Campbell's
‘Favourite 50 Recipes for Success.

’

out

his Web site at

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Stephen Murray
Contributing Writer

THE daily news media provides a
dynamic snapshot of what is taking
place in the investment world as it
happens.

While the financial pages may show
encouraging signs of where the market is
headed, the fixation’ on soaring overnight
gains or extreme losses in the performance of
a single stock may lead to an emotional cuck-
tail of euphoria mixed with depression.

Such an unhealthy mix of emotions is not
a recipe for smart investing. It may either
cause you to invest without considering the
long-term impact or to sit on the sidelines
without building a portfolio to help you real-
ize your lifetime goals.

As an RSP investor, you need to stay
focused on long-term performance, rather
than short-term gains and losses.

Yes, we all would like our investments to
make us rich overnight. But are we all willing
to pay the emotional price for trying?

Research tells us no. Even a popular tele-
vision show such as Who Wants to be a
Millionaire, which strengthens the illusion of
easy moncy by allowing contestants to accu-
mulate large amounts of cash for 15 minutes
of work demonstrates that people become
more conservative as the stakes draw higher.

While most people want to accumulate
the largest amount possible, that - usually
involves accepting the highest degree of risk.
Some people are not prepared to ride out the
downside for the potential of greater returns
and they may choose a safer option.

Tt is ail part of the emotional side of
investing — a side which too many people
have overlooked when assessing needs and
tolerance of risk. The standard information
that most planners rely on such as age, net
worth, earnings and objectives tell very little
of your invesument “EQ” or emotional quo-
tient. Bur investment EQ is central to under-
standing your acceptance of risk or tolerance
of fluctuations in the value of your portfolio:
the critical “sleep at night” factor.

While two peopie can appear similar in
terms of goals and financial situation, their
EQ is what sets them apart. A husband and
wife, for example, may share the same. net
worth, income needs, long-term goals and
investment horizon, but have entirely differ-
ent feelings about what they consider to be
the best investment for them. .

As an investor, you need to understand
your own risk tolerance. To increase your
own understanding of your investment EQ,
write down things about your investments
that make you uncomfortable. When the
market declines, do you worry? Are you com-
fortable with fluctuations? If you were on--
Who Wants to be a Millionaire, would you go
for the million or play it safe? Recording. :-:.
information and sharing your feelings and |
reactions with your financial advisors will:
give them a better idea of your EQ or risk
tolerance. : ee

Factoring your EQ into your investment:
decisions will help you develop an RSP port-’
folio that will achieve yeur retirement odjec-
tives while letting you get the sleep you need.

Stephen Murray is the vice-president of.
Mutual Fund Solutions for Canada -Trust
Investment Management Group Ines,