Volatility is never easy. I would even venture to say that not one person likes to see the values on their statements lower one month than they were the previous month; this is true even for the most grizzled investors. But to tie in with my last update, the vast majority of us hold a combination of government and corporate bond funds, and we also all have small ownership stakes in many of the world’s most profitable corporations. The biggest risk is not what the markets will do, but what emotion and the possibility of deviating from a well-constructed plan will do.

Fortunately, everyone I’ve spoken to so far has given me the been-there-before attitude. After all, 100% of market corrections have recovered.

I first dipped my toes in the investing world when I was 18. I had $10,000 to hand over to Mike. This was a lot of money. I ended up receiving a settlement from being hit by a car while I was biking home from Sandown racetrack at age 15. It’s a long story, but I’ll shorten it. I’ve recovered from the accident, and yes, I was already obsessed with money management. I was busy trying to turn my tiny, Tim Hortons paychecks into a little bit more by “investing” in horse races. I suppose that’s why they didn’t allow 15-year-olds to wager... In any case, they never seemed to ID me (and I figure I can safely say that now that Sandown is permanently closed). But as I’m on my way home from the track, a person without a license accidentally clipped me as I was cycling along Stelly’s Cross Road. I was too young to receive anything then, but ICBC issued a cheque to me on the day I turned 18. This was the spring of 2008; the eve of the financial crisis.

You may be able to imagine how my first foray into investing went… Not only did Sandown cease operations, but four months after watching my account go up slightly from my initial $10,000 mutual fund purchase, it started to go down. And go down fast. The only savings I could speak of went from a solid $10,000 and quickly turned into $6,000. Well, you all know Mike; calm, cool, and collected. He told me that this happens from time to time and because I don’t need the money right now, it’s best to just leave it be. Sure enough, I listened to these wise words of Mr. Watkins and my account slowly came back, and then eventually grew closer to $20,000. I was able to use that money to buy my first condo in 2014.

The argument I may get is, “well, I don’t have time to recover [like some scrawny, 18-year-old kid!]”

This is a fair statement. It’s also why we diligently and frequently contact our clients. We need to know what your plans are and if anything has changed to assess each individual investor. Many, if not all, of our recommendations for someone living off, say Registered Investment Funds or other savings accounts, is to own investments that pay (dividends, interest, distributions, etc.) – regardless of market performance. This helps ensure that even when things are rough, the money is still flowing. And yes, sometimes we need to sell income-paying assets that may be lower in value than they once were. We account for this, our financial plans account for this. Lifestyle and living expenses tend to outweigh this situation and are, quite honestly, more important. We will always strive to do what’s best for you, and your family, and will be here to guide you through anything that requires planning, time, and money.

Our office was closed this Monday for Victoria day, but next Monday is our first boardroom seminar at the new office. There are still seats available so please RSVP while that’s the case. Registered dietician Kristen Yarker will be in our boardroom on Monday (May 30th) to talk about eating healthy and breaking bad habits.