A Message from our CEO...

 

People always look at me funny when I tell them that I am looking forward to the next stock market crash. "Why on earth would you look forward to that?" they ask.

My answer is simple, yet very complex...

"I'm not done buying yet.  If prices keep going up, it will just cost me more. I want prices to come down so that I can get more value for my investment dollars."

No matter what stage of life someone is at-building wealth, preserving wealth, living off of their wealth-you're not done buying yet. If you have an investment portfolio, you are always working on ensuring that the investments in your portfolio are worth more than their price. If this changes, then it is time to swap out an investment for one whose value is higher than its price. This is part of the re-balancing process.

The price of things and the value of things are always changing. They are pretty much never in balance. And when it comes to investing, understanding how these two concepts relate to one another is critical to your investment success.

Let's use an example that we can all relate to: buying your home.

If we remove the emotions of real estate bidding wars and the emotional excitement of the transaction, what do we always want to do when we buy a piece of real estate? 

It is fair to say that our goal is to acquire the real estate for a price that is equal to or less than the value of the real estate. In other words, we never really enter into the transaction with the hope that we will pay more than the home is worth.
 
So, knowing this, when is the best time to buy real estate?  That's right, when the prices drop below the value.
 
The same rules apply when it comes to our investment portfolios.
 
I recently recorded a discussion I had with one of our portfolio managers where he explained this concept in Plain English. I encourage you to watch the following video. I'm sure that by the end of it, you too will begin to look forward to the next market crash.

What is the Margin of Safety?
What is the Margin of Safety?
(Charles Wilton - Raymond James)


On a final note, I wanted to highlight another interesting chart prepared by Fidelity Investments that will help you through the next market correction. The chart simply looks at the appreciation of the US Stock Market in the 5 years just after a major negative market event. 



The message is clear, if you can learn to look forward to market downturns like I do, you will begin to see that the future growth in your portfolio comes not just as the market increases, but also from the disciplined understanding of the importance of buying at the right price.  When you understand this, logic takes over and helps you in understanding that you need market crashes to properly position your portfolio to make significant returns.

All the best,
~Scott

P.S. Do you know someone who is close to retiring?  Do you know somebody who has his/her own business?

 

Introducing me to these people is more important now than ever before.  The financial landscape will look a lot different in the next 2-5 years, and these two groups (i.e. those close to retirement and those who are business owners) are going to be affected the most.  We are focusing our efforts on making sure our information reaches them to provide valuable insight and advice.

 

My latest book, "How To Choose And Work With A Financial Planner You Can Trust" is available now.  You can share it with anyone you introduce us to - FREE!  Simply have them click on this private link:

 

Private Client Group Introduction Offer: FREE e-Book

 

Recovering From Debt Following a Business Failure   


Photo by: Iain Farrell (Licensed under Creative Commons Attribution 2.0 Generic) 
 
You've poured your savings, your time and the past few years into your business venture, but it isn't panning out.  Now you're left with a pile of debt and you're on the hook to pay employees, investors and the banks.

Mike Gomes, CFP at IRONSHIELD Financial Planning has some advice on how to recover from debt following a business failure - CLICK HERE to find out how.

Be a Fly on Our Wall

Staying informed about the latest information and strategies is a challenge.  Fortunately, when you have a Top Guns Network™, as we do, the process is a lot easier. 

 

We regularly communicate with members of our Top Guns Network™ to stay up-to-date on what's important in their areas of expertise. When we do this, we record our call so you can be a "fly on the wall" and listen in. 

 

 

Financial Planning For Business Owners The Business Owner's Toolbox

Financial planning for business owners and entrepreneurs is, to put it quite simply, different.  Don't let anyone tell you otherwise.

 

That's why we devote this section to our recent articles that are specifically targeted to this important market segment and provide valuable insight to help you succeed.

 

Learn from Our Free Radio Show

Scott covers financial planning topics relevant to Canadians who are motivated by creating a bigger future for themselves and their loved ones.   

Click here to see all of Scott's free podcasts or view this month's highlighted episode below:



The IRONSHIELD Team  

Financial planning is a lifelong pursuit. It starts with an in-depth understanding of your current issues and concerns, and a clear understanding of your needs and goals. There then needs to be a process in place for monitoring your progress towards those goals to ensure they are attained.

 

At IRONSHIELD Financial Planning, our CFP professionals are continually working to make those goals a reality for each and every one of our clients. We're dedicated to helping you make smart, educated and well-thought-out financial decisions throughout all the various stages of your life.

Visit our Website to read more about our team members.

IRONSHIELD FINANCIAL PLANNING
310-701 Evans Ave., Etobicoke, ON.
416-626-6515


Regular Office Hours:
Monday-Friday 8:30-4:30
After Hours Appointments Can Be Arranged.

The CFP professionals at IRONSHIELD Financial Planning® are continually working to make financial goals a reality for each and every one of our clients. We're dedicated to helping you make smart, educated and well-thought out financial decisions throughout all stages of your life.

LEARN MORE AT WWW.IRONSHIELD.CA 

The foregoing is for general information purposes only and is the opinion of the writer.  This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.  However, please call Scott Plaskett, CFP of IRONSHIELD Financial Planning® to discuss your particular circumstances.

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IRONSHIELD Financial Planning®
310-701 Evans Avenue
Etobicoke, ON
M9C 1A3
416-626-6515
info@ironshield.ca