Grow me the Money

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Grow me the Money

• The Basics of Investing, working with a Financial
  Adviser and other Important Financial Information

2
Who am I, Who do I work for and What do I do?

• Ainsley Cunningham, B.A., B.Ed.
• The Manitoba Securities Commission
• Education and Information

3
Agenda

• The head and the Heart
• Importance of Money Management - PRIZE
• Money Challenge Question - PRIZE
• Working with a Professional
• Investment Scams
• Tips
• Questions

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Money Management

• Involves both our
• Heart emotional
• Head intellectual

5
Fundamental Freedoms

• Allows us freedom
• Of choice
• From worry

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Why is it important to learn how to manage our
Money? Practical

• Money matters affect virtually every aspect of
  our lives, at every age of our lives.
• Typically, money management rests with one family
  member. (Do you know what is going on? Story)
• Cost to achieve our dreams
• No one is more interest in my finances than me
• Because of the caregiver status there are
  significant financial penalties

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Why is it important to learn how to manage our
Money? Statistics

• Canadian women live longer than men.
• Average age of a widow is 56 years, typically
  live 27 years alone.
• 30 of Canadian women will be widowed by 65 and
  50 by age 75
• Poverty rate for unattached women 65 is 43.4
• Women earn ____ cents for every 1 that a man
  earns. (prize)
• 28 of women do not have a pension or retirement
  plan

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Money Challenge Question

• Would you rather have 10,000 now or a penny a
  day doubled for 30 days?

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What is investing?

• At its most basic, it is giving money to someone
  else with the expectation you will get a return.
• What the return is will depend on what you invest
  in.

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Three Investment Characteristics

• All investments have
• Expected Return
• Risk
• Liquidity

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Why are there rules?

• Securities range from simple to very complex
• Average person does not have knowledge to assess
  every type of investment
• When securities trading first developed there
  were significant abuses resulting in people
  losing their life savings
• As a result activity became regulated with a
  focus on public protection

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What are the rules?

• Securities legislation is provincial
• While there are some differences from province to
  province, there are two basic rules
• You must be registered to trade securities.
• Issuers must use a prospectus to sell their
  securities to the public.

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What are the rules?

• Why have registration?
• Public protection
• Expectation of professional advice
• Want to have minimum education and experience
  requirements

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What are the rules?

• Who is registered
• RESP dealers and salespeople
• Mutual fund dealers and salespeople
• Investment Dealers
• Investment Counsel/Portfolio Managers
• Who isnt registered
• Fee only financial planners
• Insurance salespeople

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What are the rules?

• Why have a prospectus
• Rights for purchasers to sue
• Rights for purchasers to rescind
• Rights triggered on delivery of prospectus
• Prospectus rights continue indefinitely until
  prospectus delivered
• Offences under the Securities Act

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Know yourself

• Assess your financial situation
• Identify your investment objectives
• Understand your tolerance for risk

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Know Your Adviser

• Credibility/Trust
• Comfort
• Reputation
• Experience - answers
• Investment Approach (philosophy)
• Price/fees
• Customer service

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Know Your Responsibilities

• As a client you should
• Establish your goals before you invest
• Inform of any financial changes
• Avoid investments you dont understand
• Read what you sign
• Monitor your account
• Keep notes

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Know your Client

• Your advisor needs to know you too
• Account opening and Know-your-client
• Suitability
• Ask about any changes

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1 .01 2 .02 3 .04 4 .08 5 .16 6 .32 7 .64
8. 1.28 9 2.56 10 5.12 11 10.24 12 20.48 13 40.96 14 81.92
15 164 16 328 17 655 18 1311 19 2621 20 5243 21 10486
22 20972 23 41943 24 83886 25 167772 26 335544 27 671089 28 1342177
29 2684354 30 5638709 31 ?
10,737,418
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Investment Scams

• The Investment is highly confidential
• There is no written documentation
• Hot tip or inside information
• You can achieve a high rate of return
• There is no risk
• 2,205,230 lost due to scams

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What can and should YOU do?

• Talk to people about money issues, friends,
  family or professionals
• Find out where you stand
• Make a plan budget
• Look at ways to cut back
• Use a buddy system
• Stay away from temptations
• Shop for bargains
• Dont impulse buy
• Celebrate your successes
• Learn always, always learn

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The Manitoba Securities Commission

• 500-400 St. Mary Avenue
• Winnipeg, Manitoba
• R3C 4K5
• Tel. [phone]
• e-mail aicunningh_at_gov.mb.ca
• Web www.msc.gov.mb.ca