Grow me the Money The Basics of Investing, working with a Financial Adviser and other Important Financial Information
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
Agenda The head and the Heart Importance of Money Management - PRIZE Money Challenge Question - PRIZE Working with a Professional Investment Scams Tips Questions
Money Management Involves both our… • Heart – emotional • Head – intellectual
Fundamental Freedoms Allows us freedom… • Of choice • From worry
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
Why is it important to learn how to manage our Money? Statistics • Canadian women live longer than men. • Average 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
Money Challenge Question Would you rather have $10, 000 now or a penny a day doubled for 30 days?
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.
Three Investment Characteristics • All investments have: • Expected Return • Risk • Liquidity
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
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.
What are the rules? Why have registration? • Public protection • Expectation of professional advice • Want to have minimum education and experience requirements
What are the rules? Who is registered • RESP dealers and salespeople • Mutual fund dealers and salespeople • Investment Dealers • Investment Counsel/Portfolio Managers Who isn’t registered • Fee only financial planners • Insurance salespeople
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
Know yourself Assess your financial situation Identify your investment objectives Understand your tolerance for risk
Know Your Adviser Credibility/Trust Comfort Reputation Experience - answers Investment Approach (philosophy) Price/fees Customer service
Know Your Responsibilities As a client you should: Establish your goals before you invest Inform of any financial changes Avoid investments you don’t understand Read what you sign Monitor your account Keep notes
Know your Client Your advisor needs to know you too • Account opening and Know-your-client • Suitability • Ask about any changes
1 2 3 . 01 8. . 02 10 1. 28 2. 56 16 $164 22 $20972 29 $2684354 11 17 6 . 08 $5. 12 . 16 12 $10. 24 18 7. 32 13 $20. 48 19 $655 24 $41943 30 $5638709 $1311 25 $40. 96 20 $83886 31 ? $167772 $2621 26 $335544 . 64 14 $10, 737, 418 $328 23 5 . 04 9 15 4 $5243 27 $671089 $81. 92 21 $10486 28 $1342177
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
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 • Don’t impulse buy • Celebrate your successes Learn always, always learn
The Manitoba Securities Commission 500 -400 St. Mary Avenue Winnipeg, Manitoba R 3 C 4 K 5 Tel. (204) 945 -4733 e-mail: aicunningh@gov. mb. ca Web: www. msc. gov. mb. ca
Скачать презентацию Grow me the Money The Basics of Investing
58f0eff2509c1f23f46c0c7f059c9db1.ppt