Take control of your financial future

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Take control of your financial future

• Part 1 Investing Basics

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What is the New Brunswick Securities Commission?

• Crown Corporation
• Established in 2004
• Double role

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Getting started

• Know where youre going financially
• Know what youre investing in
• Know who youre dealing with
• Know where to go for help

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1. Setting investment goals

• Know where youre going financially

See Investment Planning Worksheet in your kit
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Make a plan

• What do I want to accomplish?
• Contribute 10,000 toward your childs education
  in 10 years
• Retire in 15 years with an income of 50,000 a
  year for at least 20 years

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Make a plan

• How much risk am I willing to take?
• Risk tolerance may depend on
• What is more important to you safety or higher
  growth
• When you need your money
• How you react to market ups and downs
• If you have any debts
• If you have any other sources of income

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Make a plan

• Am I comfortable enough to do this on my own?
• Always check with the NBSC to find out if the
  adviser is registered, and if the individual or
  firm has a record of any disciplinary action.

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Make a plan

• What type of investment is right for me?
• Characteristics
• Risk level

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2. Types of investments

• Know what youre investing in

See Investments at a Glance in your kit
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Types of Investments

• Cash and Cash equivalents
• Money in your bank account
• Canada savings bonds, T-bills and money market
  funds
• Safe, quick access to your money
• Low rates of return in comparison

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Types of Investments

• Fixed Income Securities
• Based on debt
• You are lending your money for a certain period
  of time in exchange for a promise to pay you
  interest and to repay the face value
• Relatively safe
• Better rates of return than cash-equivalent

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Types of Investments

• Equities
• A.K.A. stocks
• Part ownership
• May receive dividends (profits the company
  allocates to its shareholders)
• Two ways to make money Dividends, or increase in
  stock value
• No guarantee companies dont have to pay
  dividends, and the value can fluctuate

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Types of Investments

• Investment funds
• Collection of investments
• Focus on specific investments
• Pooling your money
• Invest in a variety of investments for a
  relatively low cost
• Managed by a professional manager

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Types of Investments

• Mutual Funds
• Continually issues units or shares to investors
• Risk varies from low to very high
• Fees and expenses deducted from the funds
  assets.
• Voting right
• Not guaranteed
• See Understanding Mutual Funds in your kit

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Types of Investments

• Alternative Investments
• Options
• Futures
• Foreign currencies (FOREX)
• Hedge funds
• Most complicated types of investment
• Higher-than-average risk, higher-than-average
  return.

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Be an Informed Investor

• How will the investment make money?
• What are the total fees to buy, hold and sell the
  investment?
• What are the specific risks?
• How easy would it be to sell the investment if
  you needed your money right away?
• Does the investment fit with your goals and risk
  tolerance

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Investment Fraud

• Spotting the Red Flags of Fraud

See Protecting your Money in your kit
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Red Flags of Fraud

• Guaranteed high returns no risk
• Insider tips get in now!
• Offshore investment tax free!
• Profit like the experts!
• Great investment opportunity your friends cant
  be wrong!
• See Investment Fraud Checklist in your kit

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What the NBSC Can Do

• The NBSC can
• answer general questions about investment
  products and services,
• tell you if a firm or representative is
  registered in New Brunswick,
• tell you if an individual or firm has ever been
  disciplined by the NBSC,
• suggest options for pursuing your complaint and
  tell you which organization may be most helpful
• enforce compliance with securities legislation,
  and
• act against market misconduct, including removing
  from the market those who do not comply with the
  law or who cheat investors.

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What the NBSC Can Do (Cont)

• The NBSC cannot
• undo a transaction,
• give advice on an investment,
• give legal advice, or
• comment on an ongoing investigation.

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How you might be approached

• Boiler rooms (See Boiler Room Scams Could you
  be vulnerable? in your kit)
• Internet Fraud (See Investment Fraud and the
  Internet in your kit)
• Affinity Fraud

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Reporting Fraud

• www.nbsc-cvmnb.ca
• 1-866-933-2222
• See Complaints Resource Kit in your kit

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Remember

• Do a background check
• Hang up on unsolicited phone calls
• Never respond to spam
• Use common sense
• Contact us
• 1 866 933-2222
• www.nbsc-cvmnb.ca
• information_at_nbsc-cvmnb.ca
• _at_NBSecuritiesCom