Patrick C. Nicol

2011 in Review

2012-01-09T09:39:00.000-05:00

It’s not easy to be an optimist after a year like 2011. Canadian stocks sank more than 8%, led by a 52% drop in information technology. Even Canadian bank stocks offered less of a safe haven than in years past. Around the world, 2011 was a year marked by natural disasters, debt and deficit problems, uprisings and protests. Time magazine asked in its December issue: “Is there a global tipping point for frustration?”

I believe there is. Things that are broken beg to get fixed, and challenges of any kind are often accompanied by opportunities. Here are my observations for the year ahead:

First, bleak points in history are not necessarily bad times to invest. The worst time to invest is often when investors are overly optimistic and asset prices are unjustifiably high. When there’s worry and negativity, stock prices generally reflect that sentiment. Today, I’m finding stocks of many high-quality companies selling at very attractive prices. The way I see it, global markets are offering investors an opportunity to upgrade the quality of their portfolios right now.

U.S. companies have been remarkably resilient.

Despite a less-than-robust economy, and a host of other problems, U.S. companies continue to rebound. The S&P 500 was up 4.6% in 2011, and American corporate profits are at record highs. When you compare corporate earnings to what government bonds are yielding, it’s hard not to be optimistic about stocks.

Emerging markets are alive and well. Emerging markets have relatively little debt, access to capital like they’ve never had before, powerful technology and a rapidly growing middle class. That’s real growth potential. Many Canadian, U.S. and European companies that do business in emerging markets may also be well positioned, even if their local economies aren’t strong. It’s where a company does business, not where it’s based, that matters most.

Innovation and Growth

Innovative companies around the world are creating new products and solving the world’s problems. I think that’s what makes markets go up over time — it’s the effort of the individual companies solving problems. That’s a reason for optimism, as long as you’re patient.

The biggest risk right now could be over concentrating your portfolio. When we don’t know what’s going to happen, it’s often wise to invest in different types of securities. Many people end up owning too much of a “good” thing, whether bonds, cash or high dividend-paying stocks. My job is to make sure you stay properly diversified, even when the markets make you nervous. As part of your investment strategy, it's wise to check on your financial situation and any changes that may have occurred.

I can help. Let’s talk.

Patrick C. Nicol
image credit: istock

Nicol and Associates | How Can We Help?

2011-09-19T07:01:00.000-04:00

When we ask someone what they do, there's usually more to the question. I think we are asking them what benefit they provide. In the financial industry, you could ask five people this question and get five very different answers.

After more than two decades in the financial industry, I know I can’t be everything to everyone. I also know that the only place to focus my efforts is to ensure my clients’ goals are firmly in mind at all times. When I first meet a prospect, I interview them as much as they interview me. I have a lot on the line, most of which is my clients’ future. So it is imperative to ensure I can provide the kind of help they are looking for.

My Approach is Holistic.

We begin with an accurate look at their current situation, decipher what immediate details need to be attended to and enlist the help of experts in various disciplines if necessary. If someone needs life insurance, debt consolidation, financial planning, accounting or wills, I can either make recommendations to see someone I have personally vetted or they are free to selecting their own solutions. Either way, I will help them as much as they need me to do so.

The next step is to learn more about a prospect’s investment experience and fears. I will answer any of their questions and take as much time as we need to explain. This is also where I begin to explain my beliefs and strategies for wealth creation and preservation.

Full Review.

Then I perform an assessment of all holdings in current portfolios and provide them with a full report of what I have found. I recommend any changes necessary on all holdings in order to reach their goals. Like an exercise regime, we may say we want to run a half-marathon by Christmas but if we have our hand halfway down a bag of Oreos, the goal and the strategy are not working together.

I then outline specific recommendations for any changes necessary on all holdings to match their goals and objectives set out in their financial plan. We then create an implementation strategy by purchasing securities that meet their risk tolerance, their time frame and their goals of each pool of money. A full review of their portfolio is performed every six months and any necessary adjustments made to ensure they are on track.

Review of The Seven Steps I Take to Help My Clients:

Conduct an in depth conversation so everyone fully understands what I provide and what they want from their investments.
Bring in any specialists the client may need to handle any immediate issues.
Perform a full and thorough assessment of their portfolio holdings
Outline all recommended changes required to align their portfolio with their goals.
Implement our plan.
Review their portfolio every six months.
Remain available via phone, email or in person to them for any questions or discussions they need to have about their financial situation.

When you ask someone what they do, also ask the how they can help. I always have time to help my clients and prospective clients. And I'm happy to explain all of this in more detail with you in person.

Let’s get started.

Patrick C. Nicol
image credit: northings
Next post will be about what I do behind the scenes!

Nicol and Associates | Behind the Scenes

2011-09-16T15:45:00.001-04:00

Last week I outlined what I do in front of each client or new prospective client. This week I’d like address all that other stuff I do on a regular basis. As promised, this week I’d like address all that other stuff I do on a regular basis. This is in the hopes of giving you a better understanding as to how I get my information, strategies and recommendations. It may be simpler if I just put it in an easy to follow list.

These are my regular activities, in no particular order.

> Meet with each client in person every six months

> Respond to every client email, phone and in-person correspondence promptly

> Research and stay up-to-date on all global and domestic market issues

> Read my company’s analysts’ daily reports for all stocks my clients currently own

> Through daily analysis, earmark client portfolios that need updating

> Outline stocks that may be right for my clients

> Respond to client inquiries about market information

> Discuss any client inquires about changes they request or issues they need clarified

> Make any trades clients wish to be done

> Conduct an in-depth phone conversation with each client every six months

> Re-balance any accounts that are up due.

> Read, digest and analyze local, national and global business news publications and websites

> Meet with mutual fund company representatives for updates on funds and programs

> Review each client portfolio to ensure we are on plan.

> Meet with executives from companies to investigate if they are worthy of recommendations

> Continue my financial and investment industry education through conferences, courses, books

> Complete a minimum of 30 credits each year from the Industry Regulatory Organization of Canada.

And I am never too busy to meet with you and talk about how I can improve your financial future. Coffee’s on me!

Patrick C. Nicol
image credit: singlemomfinance

Nicol and Associates | Stock Market Perception

2011-08-16T11:27:00.007-04:00

Wild Fluctuation

It is reminiscent of 2008-2009 all over again. We are hearing cries of "here we go again" and people are fearful of losing a good portion of their invested assets and retirement savings. So let's talk about March 9th, 2009. The Toronto Stock Exchange hit a low of 7,700. Things looked bad. Good investors were making skittish decisions. Confidence seemed at an all-time low. How bad would it get?

Yesterday All Over Again?

Fast forward 17 months and the TSX is currently around 12,500. How bad could it get? Will the bottom fall out of the markets? If I had told you in March of 2009 that the Canadian stock market would bounce back almost 5,000 points you would have slept soundly that night. You would have been ecstatic.

Fast Forward Back Again

There are many differences between what has gone on these past few weeks versus what happened in 2008-2009. There are almost no fundamental reasons for this volatility, but I once again remind you, where will the markets be 2, 5 or 10 years from now? Almost as sure as any other 10 year period in our history, they will be higher than they are now. And you will have wondered what all the fuss was about in August of 2011. Buy great companies and stop watching “the market”.

And I am always here for any of your questions.

Patrick C. Nicol
image credit: wikipedia

Nicol and Associates | Living By Numbers

2011-07-12T07:21:00.004-04:00

There's more than what you may read, hear or see in the media.

My passion is helping my clients enjoy today, grow their wealth and ensure a healthy financial future. The news and opinions in the media and throughout the social networks can be distracting. So with that in mind, I thought I would go over some of the numbers for you.

There were mixed results on global capital markets during the second quarter of the year. Bond prices rose, while stocks in general pulled back. Even then, markets such as Germany and Japan made gains, while China and North America were down.

The performance of Canada’s S&P TSX Composite Index was notable in that by mid-June; it had experienced a technical correction – broadly defined as a decline of 10% or more. However, Canadian stocks rebounded at the end of the quarter, and the index registered a decline of 5.2% for the three months and a slight gain of 0.2% for the year-to-date. U.S. stocks have fared better, as the S&P 500 Index was flat for the quarter and up 6.0% for the six-month period (in U.S. dollars).

Market observers point to several reasons for the Canadian market’s lagging returns this quarter. Prices have risen dramatically for fuel, food and other commodities as the global economy recovers, contributing to higher inflation in many emerging markets. Central banks and governments in developing countries have taken steps to cool their heated economies, leading to lower commodity prices, which then affected the commodity-driven Canadian stock market. Markets around the world, meanwhile, were also rattled by renewed government debt concerns in Europe and the U.S., while consumer debt and unemployment levels in developed markets remained elevated.

Despite these concerns, investment veterans such as Gerry Coleman of CI Investments’ Harbour Advisors and Daniel Bubis of Tetrem Capital Management have recently expressed their conviction that equities will continue to outperform other asset classes. These experts point out that equity market valuation remain reasonable and corporate fundamentals are healthy.

The global economy, while not uniformly robust, is still supported by impressive growth in developing economies, low interest rates and strong credit markets. From March 2009, when the stock market reached a bottom during the financial crisis, until March 2011, the Canadian stock market had surged over 90%. Historically, pullbacks of 5% to 10% have been a normal part of such ongoing market advances.

In this environment, portfolio diversification – both geographically and across asset classes – provides a defence against volatility while allowing you to benefit from market growth. During the last quarter, for example, bond prices rose as equity share prices fell. The tendency of returns and risks to vary across different types of investments helps to smooth out the highs and lows in a portfolio over time.

My team and I continue to monitor financial market conditions on your behalf. Should you have any questions or concerns about your portfolio, please do not hesitate to give us a call – we are here to help. A great way to start is simply call my office and we can book a time to grab a coffee on me. I wish you and your family a safe and pleasant summer!

Patrick C. Nicol

image credit: dnjuice

Please Help Make a Child's Dream Come True

2011-04-19T21:42:00.010-04:00

Can You Help a Child?

This June, I will be sent to Exile Island. I will be subjected to harsh conditions and impossible tasks that will challenge my mental, physical, creative and philanthropic abilities. The only hope for my survival is that you help me raise funds for The Children’s Wish Foundation of Canada.

All fun and games aside, the day is about granting special wishes to children with life threatening illnesses. Granting a wish to a child can be a pivotal event in their life. It can be a chance to dream, enjoy the pursuits of a child and experience the grandeur of the world that most of us have a lifetime to enjoy.

June is fast approaching. All you have to do is make a donation to help grant a wish.
Make a pledge and help me out of exile! More importantly, help me create the magic of a wish.

Click on the following;link to visit my personal team page
Click on Ottawa and donate and you will find my name.

Thank you for your generous support!

Investments Don’t Make Mistakes. People do.

2011-01-25T14:27:00.009-05:00

I was recently asked to contribute to the January 2011 cover story for The Advisor's Edge which is an industry publication for investment advisors. I would like to thank Christopher Hope for including me. I wanted to share the article with you.

Feel free to email me if you have any questions.
________________________________________________________________________________

When investing, leave emotion at the door.

In uncertain times, as markets look for turning points that shift from negative or flat performance to more positive returns, this long-held cornerstone belief is one of the toughest for investors to live by. After all, investing is a very human pursuit and is often influenced by personal perspectives. Especially in turbulent, uncertain times, it’s subject to deeply human reactions.

For advisors, times like these present real challenges, as investors seek reassurance their portfolios are not only weathering the storm but are also well positioned to take advantage of any future attractive opportunities.

Providing such reassurance isn’t always easy when the morning headlines are filled with catastrophism based entirely in the moment. Expectations can swing wildly during times such as these, when everyone’s looking for signs of a shift from negative to positive.

So how do successful advisors handle shifting expectations? Are they in fact seeing a marked increase in client expectations, fuelled by nothing more than sheer hopium, as some call the all-too-human desire to hope for more positive results? Are advisors’ phones ringing and BlackBerrys chirping with investors desperate to find out which way to turn and what to think of current conditions? The answers may surprise you.

Know your client.

For financial advisors, understanding and successfully managing the expectations of their clients is beyond vital; it’s the difference between success and failure.

But a firm grasp of human nature isn’t the sort of skill that can be absorbed from a textbook or picked up in an evening class. It’s an innate ability developed entirely from the need to hold true to sound, basic investing principles.

If advisors have a strong understanding of human nature, they’ll succeed and prosper. If they don’t, they may yet find success in their chosen field, but it likely won’t involve dealing directly with the investing public. What’s clear is they must have that sense of how an investor views his or her portfolio’s structure, and how best to communicate its performance in light of these expectations.

Ultimately, managing psychological expectations is achieved by holding fast to well-proven principles, a theme experienced advisors come back to time and again. For Nancy Woods, associate portfolio manager and investment advisor with RBC Dominion Securities, effectively communicating proven investing principles is an ongoing requirement, one that should start at the very first meeting between advisor and client.

“As an advisor, you have to really know and understand who you’re dealing with, starting by just listening to them,” she says. “You also have to really know and understand what you hold and manage on their behalf.

“In very simple terms, being an advisor is a never-ending test of psychology. Thinking long-term is always best, and an advisor should tell his or her clients that trying to time the markets is risky and counterproductive.”

But this can be challenging during difficult times.

“In tough times, clients want to know how to protect themselves,” notes Woods, “and this depends upon their own unique profiles. What are their goals? Is there a specific income they expect to derive from their portfolio? Good times or bad, it’s hard to argue against stocks that have a good track record for dividends. Dividends are great because you want to be paid while you wait for broad-based conditions to improve.

“Having a solid and well-diversified financial plan is essential to managing client expectations, regardless of the current environment. It remains a constant long-term goal. Explaining this to them in clear detail is the best way to manage expectations.”

Investments don’t make mistakes. People do.

Patrick Nicol of Dundee Wealth Management in Ottawa agrees, pointing out advisors who stick to strong principles will always be successful in managing expectations. The need to show that each individual investor’s financial plan is based on these principles from day one is extremely important. He also stresses current conditions are nothing new—something a review of history easily supports. “As a noted behavioural investment counselor so accurately put it, ‘Investments don’t make mistakes. People do,’ ” he says.

As he’s quick to point out, investors now face a sea of often conflicting media sources and opinions that can test the discipline of even the most calm, cool and collected.

“When everyone is piling in, it’s usually too late,” he says. “When clients call regarding something they’ve read or heard, an advisor needs to tell them it’s okay to read it and to talk about it, but they should never act on it. Forget all the noise and point out the futility of following trends that undermine the three key principles that have made their portfolio successful. As investors, they’re going to have down years, but in reality, they should welcome them because opportunity usually follows.”

While it seems like only common sense to conclude that uncertain times will result in highly reactive clients, this isn’t necessarily the case. Jonathan Rivard, an advisor with Edward Jones in Toronto, feels the opposite is often true. “Right now, I find clients’ expectations are actually very realistic,” he says. “Bad news has a way of lowering expectations and making an investor’s outlook much more cautious due to the amount of unknowns.”

So while the news can influence their outlook, it also makes clients that much happier when their investments perform well in a tough market.

“A bombardment of relatively poor news such as we’re seeing now,” Rivard continues, “suppresses expectations, which gives advisors an opportunity to really demonstrate their value through the strength of their long-term plan. Educating clients on the safety of their investments, the steps you’ve taken to preserve their capital and how they’re still on course towards their long-term goals according to a transparent and well-documented financial plan is never more important than now.”

Rebalancing act

All agree emotion can be a very dangerous thing, undoing years of careful research, planning and discipline. Changing course based on perceived bad news or unfounded faith in overly optimistic sentiment is never wise, and threatens to destroy proven risk management strategies overnight.

Again, education and transparency go a very long way towards managing client expectations that may be driven purely by an abundance of either positive or negative data, which often has no real correlation with an investor’s established financial plan.

To this end, Nicol has developed a long-term strategy to effectively pre-empt the kind of apprehension clients may feel in the face of markets looking to find a positive footing.

“Once a year, we rebalance each client’s portfolio according to the long-term plan set up for them. It’s not sexy or exciting, but what it’ll do is have the client’s portfolio outperform each fund on its own and as a whole continuously, by reinforcing the buy-low, sell-high discipline. We must be certain we’re not under-diversified, but it’s equally important to not be over-diversified either. I like to think of this as idea diversification.”

Nicol’s suggestion to other advisors: “A year after you’ve set up a portfolio, revisit it to ensure you’re still in the same weighting you intended in order to reach your client’s financial goals. This should be done each year at the same time. This practice will automatically force you to take your winners and feed your losers, which will in turn increase your long-term, real-life returns and make them better than even those of the investments themselves.”

Advisors are the first to understand cycles of change. While markets can shift in an instant—and often do—a long-term outlook reveals these cycles are not only logical but are also in many ways predictable, based on underlying market fundamentals.

Demonstrating this understanding is essential in helping manage client expectations, and experienced advisors are quick to point out the virtual certainty of markets to recover.

Although it’s difficult to provide clients with specific predictions as to when a turning point will occur, the long-term ability of markets to recover is beyond question. Again, most advisors agree a well-balanced and logically considered financial plan is the best defence against client uncertainty.

And the ability to understand the human side of an investor’s expectations and bring it in line with a strategy that works best to achieve their long-term goals is extremely important.

“Each advisor has to demonstrate their value to the client, and that has to be ongoing, regardless of prevailing conditions,” says Rivard. “It’s sometimes a difficult conversation to have, but you have to be very realistic, always maintain a cautious outlook and stress there are always unknowns. But for those who are well structured for the long term, a clear discussion of the facts provides the best reassurance.”

Advisors should also warn clients against following the crowd. “Always talk the client out of following so-called trends, which can play havoc with an investor’s discipline,” says Nicol. “I’m always the first to tell them I don’t know where the markets are going right now, and frankly I don’t care—which sometimes catches them off guard. But boring is good in my eyes, because when you can show your client that boring has always paid off, it’s pretty hard to argue. That’s always reassuring.”

Rivard concurs. “Today’s media stories are always short-term, while a successful financial plan is always long-term. The media can make an investor feel they’re under-performing, when in fact, their financial plan is achieving exactly as planned, based on their individual goals. The long term always comes back to positive growth, but patience and discipline are essential.”

Searching for a comfort zone

Nothing succeeds better than a well-considered plan that supports an investor’s goals and establishes a position open to opportunity. But such a position also needs to be resilient to shifting market conditions. Diversification frees both advisor and investor from the stress and anxiety that can result from having to continually monitor shifting market conditions.

A review of market history across all sectors of investment proves that slow and steady is also a logical and well-established strategy. It’s a comforting concept for investors, and goes a long way to curbing any unrealistic expectations.

In essence, experience proves that the best way to manage expectations is to set the time horizon for each client as far as possible right from the beginning, and continually illustrate the strength of this approach through clear and transparent use of supporting data. With a careful, thoughtful interview, any unrealistic client expectations will reveal themselves early on.

Rapidly changing conditions, sometimes unexplainable market shifts and the minute-by-minute financial reporting that now bombards investors can wear away at the discipline, patience and faith so carefully constructed by advisors.

So while a return to a bull market is an eventual certainty, the task of managing client expectations as they prepare to change direction is far from easy. But then again, it never is—so begin the process early and keep it going.

If you have any thoughts or questions,
send me an email and let's chat!

Email: patricknicol@gmail.com
.
Original source: The Adivsor's Edge

Nicol and Associates | June 2010

2010-06-25T09:52:00.002-04:00

I have said from day one that I want to be much more than your Investment Advisor. I want to be the first call you make if you are selling your house, need landscaping, looking to buy a car, going on vacation or any number of other needs. So I spend a lot of time looking for and talking with business owners to learn how they go about their business.

I have formed many very good relationships with entrepreneurs that I trust and have been sending them happy clients. As part of a monthly mail out, I am going to highlight two of these businesses so that you can learn about what they do as well.

If something piques your interest please call me at 613-722-1854 so I can make a warm introduction.

GEORGE RABAY – JR Elite Auto Sales

Founded in 1990, JR Elite Auto Sales was founded on principles of luxury, approachability and affordability. We believe lusting after a premiere automobile is merely the first step in acquisition: find what you want, talk to someone who can find it for you, and figure out how to get it.

As a family business, we are committed to the continued happiness of our clients. We specialize in exotic cars, and can provide mechanical service on all cars, any brand or make, import or domestic. Our full service body shop and paint shop is one of the best in the business, and our 8000 square feet of service space guarantee that wait times for repairs are kept to a minimum.

KNEALE MANN - YouIntegrate

Over his 26 year career, Kneale Mann has been a radio program director, marketing/promotion manager, talent coach, strategist and consultant.

He has helped launch and manage major commercial brands and media outlets, worked with business owners and managers and produced large scale events. He has also given his time to numerous not-for-profit initiatives including the White Ribbon Campaign, Habitat for Humanity, Easter Seals, United Way and TEDx Ottawa.

Mann has overseen countless marketing campaigns, written published newspaper and online columns, consulted radio and television projects, coached media professionals, facilitated research and web initiatives as well as hosted professional workshops and business functions.

Kneale specializes in business coaching, strategic and marketing planning, social media consultation and implementation as well as personal and company branding.

The Investor vs. Investment Gap

2010-06-16T06:48:00.002-04:00

In 2004, an intensive study was conducted on investor-investment behaviour. For the period of 1984-2004, a U.S. mutual fund had an average annual return of 10.7%. What’s alarming is that during this same time period the average mutual fund investor enjoyed an annual return of only 3.7%.

It doesn’t take a math whiz to see that 7% seems to be missing.

This study still rings true today for a very simple reason: Investor Behaviour.

As humans we naturally gravitate toward wanting to “do better”. All too often we chase the idea du jour, claim this is better, that doesn’t work anymore, my neighbour made money doing it that way, the end of the world is upon us, get me out, etc.

Fear and greed rule the day.

All too often, we get caught up in the “fund of the year” or growth is better than value or technology is better than large cap or Europe is toast and there is a solution. It is a very simple, diversified portfolio, adjusted just once a year back to its original asset allocation that would likely outperform 90% of your neighbours' investments.

Most investment advisors get caught up in their analysts daily, hourly and by the minute predictions. No one can accurately predict, economies, sectors, regions, stocks, interest rates, etc. every time. If we concentrate on the one factor we can control – our behaviour – we don’t need to focus on the minutiae.

In his latest book Behavioral Investment Counseling, Nick Murray outlines three principles and three practices which will put any investor in the top ninety percentile of long-term real-life returns.

Principle: Faith
We have to believe, as it has always happened in the past, our only true test, that life will go on and that it will get better over time. It always has and always will.

Principle: Patience
It takes patience to wait through all the fads and fears constantly being thrown at us from all the talking heads in the media.

Principle: Discipline
In order to fend off the daily rhetoric you must continue to deposit money to your plan on a systematic basis, the discipline to stay the course when naturally we want to say “this time is different”.

Practice: Allocating Your Assets
Ninety-three percent of all investors’ returns can be attributed to Asset Allocation. This is the long term mix in a portfolio of stocks, bonds and cash. The proportion of each of these has the largest impact on your return (if you have the right behaviour).

Practice: Diversification
We must be certain we are not under diversified, but equally important not to be over diversified either. I like to think this as idea diversification.

As an example, in 1999 Technology was the big thing. Dot.coms and IPOs were happening at the speed of light however there was little financial of business foundation beneath much of this activity. If your portfolio was rich in tech stock in 1999, how did you fair by the end of 2001?

If you had divested your money in 1999, you would have softened the blow by more than eighty percent two years later.

Practice: Re-Balancing
This is the easy part. A year after you have set up a portfolio, revisit it to ensure you are still in the same weighting as you wanted to reach your financial goals. This should be done each year at the same time. This practice will automatically force you to take your winners and feed your losers, which will in turn increase your long term, real-life returns, and make them better than even the returns of the investments themselves.

Let’s continue the conversation.

Email me any time patrick@nicolandassociates.ca

Nicol and Associates | May 2010

2010-05-10T11:10:00.007-04:00

Each month I highlight 2 business owners that I have met in person to hear their story in how they help people and run their businesses. I send it out to my clients, to remind them that I can help them in more ways than just their investments. This months recommendations are below.

LIAM SWORDS – Sales Representative, Royal Lepage Team Realty

The Liam Swords Team is a team of high-energy professionals that are dedicated to giving you a higher level of service! When you choose to work with Liam Swords, you not only get a highly experienced sales representative with a comprehensive knowledge of real estate, you get a team of highly skilled professionals who will work with you personally to ensure the buying/selling process is as stress free as possible.

We provide a full service package including home staging and professional photography to get your listing on in the shortest amount of time looking it’s very best! We are always available to answer any questions you may have with no obligation whatsoever!

AMANDA O’REILLY - Balance InStyle – Weddings InStyle – Events InStyle

Who are we? Balance InStyle came to be in 2007 after losing a good friend to Breast Cancer and I realized the real need in our community for the types of services that we are offering.

We are the first in Ottawa to provide lifestyle management solutions from leisure to luxury all the way down to the routine and mundane. We support you by taking care of an array of time-consuming daily tasks that could be weighing you down. Concierge services are today’s solution to today’s busy lifestyle. We help you organize anything that you do not have the time or the patience to do yourself. We have created a model to give relief to the growing population of the overburdened and time starved.

We personally guarantee that all of our vendors have the Balance InStyle seal of approval! We require everyone that we do business with be licensed, insured, and bonded where applicable. We always verify references and personally test drive each and every one of our vendor’s services to ensure that they are providing the quality of service that we are proud to recommend to our clients.

Weddings InStyle is the intimate alternative to weddings in the capital. Regardless of the size of your ceremony we will help you celebrate InStyle. Weddings InStyle is the new chic, hip one-stop wedding destination, conveniently located at 107 Murray Street in the heart of the Byward Market. Our 2000 sq. ft. intimate, well-appointed, modern space is the most unique wedding venue in Ottawa – a great alternative to the typical, non-descript, already-been-there-for-your-friend’s-wedding feeling most of the Ottawa banquet rooms, hotels, catering venues and City Hall offer.

Events InStyle: Hosting your event at Events InStyle means your special function is guaranteed to be unique, chic and sleek in our modern and versatile venue at 107 Murray Street in the heart of the Byward Market.
Events InStyle’s setting offers a blank canvas upon which we work with you to create whatever look and feel you desire – modern, urban, romantic or elegant. Our 2000 square foot open concept event space features exposed brick walls, hardwood floors, granite bar, attractive lighting, state-of-the-art audio and stylish decor to suit any event.

If you would like to be featured or would like to hear more about these great businesses, please contact me.

Dundee Wealth Builder

2010-04-09T09:26:00.003-04:00

Monthly Market Snapshot

2010-03-03T08:06:00.003-05:00

Women? Why Women?

2010-01-31T16:17:00.005-05:00

Women Rule: My Client Strategy

Focus Focus Focus

No matter what industry you are in, you need to have a clear focus on your ideal target customer. Does this mean that 100% of your revenue will be derived from this group? No, but without a focus your overall strategy will be cloudy at best.

And before your hand is poised on the send button of an argy email, I will boldly say that my ideal clients are women business owners. Now if you own your own business and you are a man, that’s okay we can talk but let me explain my reasoning.

Where It All Began

My career began in the banking industry. I loved it but wanted to expand my franchise and help more people one-on-one. I have narrowed my target while expanding my solutions for clients.

The genesis of my target comes from research done by a colleague at Manulife Financial back in 2002. It also comes from attending various business building workshops over my twenty-one years in the financial industry.

A good friend of mine who is a sales representative for one of the companies I promote forced me to answer some questions last week. He wanted to know about my focus and ideal target client. If you were to look at my practice, my answer would be rather apparent but it made me think a lot clearer.

Here’s what transpired.

Business owners: They understand risk as they have had to take a great level in it, in building their own business. They also don't have time to worry about their investments, Insurance, RRSP, TFSA, RESP, Disability, Buy/Sell Agreement, Taxes etc.

Business owners need to focus on their business. I focus on helping them build a solid foundation.

Women: My mom raised me by herself. She remains my hero. Her strength created the backbone of my life as a husband, a father and a business owner. It is her continued wisdom and grace that has given me the tools to have stronger business interactions with women than men.

Hang on! Don’t send the email just yet!

I did mention earlier that this is about target and ideal customers, I have plenty of male clients and the fact that I play hockey a minimum of four times a week gives me no shortage of testosterone laden activities. But I have a much easier initial comfort level talking business with women.

Manulife Financial recently did research on this subject. These are generalizations as with any research but the results were fascinating.

A woman is more loyal. When a man hears about the next big thing going that will make him a pile of money, he runs and jumps at it without much thought. His greed takes over and he is gone.

A woman will think it over rationally, weigh the pros and cons and then make a decision. More often than not, that “next big thing” slows down quickly and is not much more than another dead end speculation.

A woman will actually listen and if they don't understand something, get this, they ask! Most men are too proud to think that they don't know everything, which causes a lot of nodding and a search for that next big thing.

A woman will take her time to completely understand and educate herself on what is presented to her. This builds loyalty and that "benefit of the doubt" factor. I take this responsibility very serious because it is founded on trust and once you break that, it’s over.

A woman will do her research and ask questions about what she has found rather than jumping on another speculation. Patience gives her a more solid foundation, she is secure in the knowledge of what she is investing in and her patience usually pays off.

A woman can sense a fake. It’s not called woman’s intuition for nothing, it is a reality. If she feels she is being conned, she is gone and she’s usually right. Most men you can tell them what they want to hear but they are not listening to the details. This causes issues down the road when you have to explain things like market fluctuations and average return on investment. A woman already gets it.

I have had great husbands for clients and not their wives. I did a great job for the husband, made him some great returns, gave him great service but it seemed to push the wife away from becoming a client. It seemed to create a bigger wedge between them in their financial lives.

Conversely I have had wife clients, did a great job for them, great service and respectable returns; and the husband doesn't want to be left behind so he becomes a client as soon as he possibly can.

So my ideal client is a woman business owner looking for help, that I can help, who wants to learn and be a part of the process. Go ahead, send your email, I’d love to talk with you about helping your financial future.

How can I help you?

Newsletter | January 2010

2010-01-07T13:42:00.005-05:00

2009 Year End Letter

2010-01-07T08:08:00.002-05:00

January 7th, 2010

As we begin a new year, the economy and overall business and investor confidence continue to strengthen. It’s a marked contrast from a year ago, when the news was dominated by frozen credit channels, recessionary economic conditions and a sharp decline in share prices.

A turnaround began in the spring, as economies gradually stabilized and credit markets re-opened thanks to stimulus action by governments and central banks. This was accompanied by a sustained stock market rally that began in the first quarter and continued throughout the summer and fall. Although still shy of their high points reached in 2007 or 2008, many global markets have rebounded smartly since bottoming in March.

Canadian stocks as measured by the S&P/TSX Composite Index have risen over 50% since their low point in early March. In the U.S., the S&P 500 Index is up more than 60%. Most other world equity indexes are also firmly in positive territory. The Canadian dollar, meanwhile, gained about 15% against the U.S. greenback in 2009. While this has been another factor making our home market a good place to invest, it also has the effect of offsetting gains in U.S. and other foreign investments.

Just how closely your own portfolio’s performance has mirrored the rebound in the broader markets depends on several factors, including overall asset allocation, geographical diversification, and the decisions made by individual portfolio managers. However, the year’s events underscore the importance of a structured, well-diversified portfolio, and of avoiding the temptation to “time” the markets by jumping in and out of investments in reaction to short-term conditions. Investors with the fortitude to stay the course over the past year have benefited from the turnaround. For example, Statistics Canada, reports that Canadian households gained about $268 billion in net worth between April and September 2009, mainly on the strength of their equity and real estate investments.

As we enter 2010, recent data indicate that the recession has given way to a very real, if uneven, global economic recovery. While the U.S. housing market weakness that contributed to the credit crisis still lingers, the Canadian real estate market remains strong. Demand for commodities is supporting both the Canadian dollar and equity market. Nonetheless, the Bank of Canada recently renewed its pledge to keep its benchmark interest rate at a record low of 0.25 per cent to foster continued growth. The developed economies of Europe and Asia are also recovering, while emerging markets, especially China, are posting relatively strong growth.

In closing, I would like to wish you and your family all the best for 2010, and remind you that my team and I are just a phone call away should you wish to discuss your investment portfolio.

High Interest Savings Accounts

2009-09-30T08:42:00.009-04:00

What is an HISA and Why Should You Have One?

Numbers and Math

My only focus is people but obviously a big part of my career surrounds numbers. All too often clients are confused and intimidated by numbers. That is understandable. Numbers and money are tough subjects to tackle on your own. Numbers can be confusing. Money can be deeply personal. You need a place to get honest advice and help.

HISA: What’s That?

Lately I have had more and more people ask me about an HISA – a High Interest Savings Account. On the surface that sounds like a place to put some of your money and earn high interest. It may appear a bit oxymoronic right now because the current “highest” rate for an HISA is 2.10%. But the numbers only tell part of the story.

Can You Bank On That?

You can go in to your local bank branch and open an HISA at their posted interest rate. You can then go online and move your money between bank accounts or you can do so at a bank machine. It sounds easy. It sounds safe. But is this your best opportunity to grow your money?

No it is not.

Another option is to open an account with ING because you like the guy on TV who is very convincing. After all, he says he’ll take care of your money and give you the highest interest rate. Are you sure you have the highest rate you can get? Not necessarily.

Today and Tomorrow vs. Long Term

So you do your homework and decide to pick the financial institution that posts the highest rate. That was easy, right? Not so fast.

If you open an account today, it may take a day or two before your money is moved and your account is activated.

What if that institution’s interest rate drops during that time?

The money you make on your account is whatever the current rate is, not what it was when you opened the account. Two days from now you may not be with the institution that has the highest posted rate.

How Can I Help?

While we are examining all of your options, imagine what would happen if you opened an account with me. I only work on a full disclosure model. You cannot make an educated decision unless you know all the opportunities available to you.

In the case of an HISA, we only use Canadian Deposit Insurance Corporation (CDIC) insured companies. The CDIC protects each of your accounts up to $100,000. This is your safeguard against any failure your financial institution may suffer. Your money is safe and you are able to hold several savings accounts within your account with us.
I shop for you, I watch your accounts for you and I look for the highest rate for your money. So we can move your money to whatever institution has the highest interest rate at any time.

It’s important to note that there are no fees for these accounts. And they can be opened for Business Accounts as well. Yes even your business account can earn interest.

I don’t have a cool accent; I can’t offer you fancy artwork in my branch but I will provide open honest and real advice so you can get the highest rate available for your High Interest Savings Account.

Your questions and thoughts are always welcome.

What Should You Ask Your Advisor

2009-08-27T09:18:00.004-04:00

Level of Service and Advice

1. Will you be providing comprehensive, integrated financial advice? If not, what advice will you be providing? How often will I hear from you?
2. How often will we review my financial plan to make sure I am on track?
3. Do you provide a written summary of the highlights of our meetings?
4. When I call, how long will it be before I will hear back? Will you return the call yourself or will your associate?
5. If we have a problem, what steps should I take?

Type of Relationship

6. Will our conversations be treated as confidential?
7. Who besides you will have access to my information?
8. Will I be dealing with you or one of your associates?
9. Describe the profile of your typical client? Your ideal client?
10. Is a minimum account size required?
11. Is my account larger/smaller than your average account size?

The Costs

12. How do I pay you?
1. Directly: Fee for service, commissions, fee based on the size of my account, fees based on portfolio performance
2. Indirectly: Deferred sales charges and/or trailer fees, other fees based on the size of your account, or salary paid by your firm.
13. What fees and other costs, both direct and indirect, are involved in working with you and your firm?
14. Can you give me a dollar estimate of what those fees and costs would be for someone with my needs?
15. Do you have a minimum annual fee?
16. Do I have to pay GST or HST on top of these costs?

Qualifications

17. Are you or your firm licensed to offer investments to the public?
If yes, are you registered to provide financial planning advice?
If no, are you qualified to provide financial planning advice?

18. What is your professional training?
19. What is your experience as a financial advisor?
20. Do you carry professional liability insurance?
21. How many hours of continuing education do you complete each year?
22. Are you a member of any professional association?
23. Has the regulator or your professional association ever disciplined you?

If You Want Them to Manage Your Investments

24. Will you manage the investments yourself or outsource it?
25. Is your firm registered with a major stock exchange or a member of the Investment Dealers Association?
26. What sort of investor protection is available?
27. What range of products and services do you offer?
28. What is your investment philosophy?
29. Will you be recommending any investments that would tie me to your firm? If so, which ones and why?
30. What types of investments are you currently recommending?
31. What potential conflicts of interest should I be aware of?
32. Will you be required to call me before you make any changes in my investments?
33. How often will you be reviewing my investment performance?

Meeting Your Advisor - In Person!

2009-08-13T14:42:00.005-04:00

Have your accountant and your financial advisor met?

They should be meeting once a year. There is a lot for these two professionals to talk about regarding your tax and investment strategy. Most business owners believe that their accountants tell them everything that they could be doing to save taxes. This is very seldom true.

Most accountants do not offer a lot of forward thinking advice, they are trained to think backwards, as in, this has already happened, how do we make it most tax efficient. Your financial advisor is the opposite, they are thinking, what can we do going forward. When these two professionals get together it is in your best interest. If they have NOT met, ask them why they haven’t suggested meeting.

Did you know that there are ways of getting money from your business to your personal hands TAX FREE, yes tax free.

Did you know that you can hold cash in your business for an almost indefinite amount of time without paying tax on any gains? Actually on that note did you know that most business bank accounts pay 0.00% interest.

Did you know that you can get business accounts that DO pay interest and back to the first point, lets say you have your company’s rainy day money in liquid safe investments, wouldn’t it be nice to know that you will not have to pay tax on that money until YOU decide to.

I can tell you from personal experience that Accountants do not offer this information. It is not because they are bad accountants or that they don’t know, (although again their training isn’t to seek out these strategies) it is that you are paying them to look after the things that have happened with your corporate “books”.

I consider my own accountant to be very proficient, very professional, very thorough and diligent. He has been my accountant for 5 years. We now meet once a month to have lunch and discuss ideas that I have as an advisor and he puts them to the “tax test”. He has been amazed at all the things that individuals and specifically business owners can do to reduce their tax bill.

Money Market or Short Term Bonds (Funds)

2009-08-06T21:49:00.005-04:00

The big thing these days since our market meltdown that started back in November is to make sure that everyone's money is "safe"

Money Market funds were taking in the majority of money since November, and now because of their pathetic returns of on average .24% more people are now seeking out short term bonds and bond funds to increase that paltry return THINKING they will be a safe place to do so.

Think long and hard before taking on this strategy. See attached for our recent research.

For more information - click here.

TFSA: Tax Free Savings Accounts

2009-07-27T09:47:00.002-04:00

There has been a lot of misleading talk surrounding the new TFSA or Tax Free Savings Accounts.

They do NOT have to be Savings accounts.

The account itself is similar to an RSP in that you can hold savings accounts, GIC’s, Mutual Funds, Stocks, Bonds and a few other securities in the account. They also do NOT need to be opened at your bank (and really if you are reading this should have one with me )

Most institutions do not have any annual fee for these accounts and most do not have any transaction fees depending on the security that you hold within the account. You can have more than one TFSA (just like an RSP) however amounts are tracked so that you do not go over the maximum contribution limit (5K for 2009).

If you do go over this limit you will penalized by CRA in the tune of 1% per month for any money that you are over. In my opinion there is little advantage of having more than one since in one account you can hold any mix of the investments mentioned above.

How they work (or are taxed)

Anyone over the age of 18 that is a Canadian resident can open one. No “room” is needed to have one. Unlike an RSP you will NOT get a tax deduction for depositing to them, however, unlike an RSP you will NOT be taxed on any growth within the TFSA. This is where it gets fun. You can use these accounts for many applications. If you do not have an emergency reserve of cash, then this is a great place for it.

You can hold it in a savings account or GIC or Bond, and any interest that you make on that money will be tax free. This is important since interest income is taxed at the highest rate and in some circumstances even higher than earned income. Saving for a house? This is the place to do it as any interest or capitals gains made while saving will not be taxed when you take it to buy your house (or cottage, or car or whatever).

Another very neat and important difference between TFSA and RRSP is that any money you take out of it gets ADDED to your limit for the next year (more on this later). Another application for this account could be for your very aggressive or speculative investments. Let’s say you have an emergency account already, or line of credit that you would use in case of emergency.

Your need for liquid “safe” money is not high so you put 5K into a speculative security, that security hits and you triple your money in a short time. You take the 15K out and put it in your pocket TAX FREE. AND 15K gets added to next year’s TFSA amount. The downside of this is that if you lose any money in the speculative security you cannot claim capital losses either. (ask more about this is it is of interest).

As you can see they are a little bit more complicated in some ways but are also much more flexible and can be used for many different applications. In my opinion (and the opinion of my two close accountants) everyone should have one of these regardless of goal for the money deposited.

There is no downside.

I'm Mad at My Industry

2009-07-26T07:40:00.005-04:00

Do you ever get mad at all the things that you think are wrong with your industry, company, workplace...whatever! I have been in the financial services industry for over 20 years of my life.

I love it, I really mean love it.

In my mind (other than playing in the NHL) there is no better job. I meet new people, make new friends, help them financially, and get paid to do it. How can you NOT love this profession? Like most things in life, it is not all roses, and on a day to day basis it is amazingly refreshing to wake up and love starting to work at 5am and never really stop until I got to bed at 11.

However one thing that has been eating at me for probably 15 of those years is the lack of transparency in 2 things in our business. Most clients are completely unaware of HOW THEIR ADVISOR MAKES MONEY (and more importantly why they should care). The biggest "secret" kept from clients is what we can and cannot recommend to our clients. How many Mercedes salespeople are going to tell you, after they learn everything they need to know about your driving needs, that the perfect car for you is a Toyota? Right, none.

Same thing happens in the financial world.

Here is a rough idea as to how it works. MFDA (Mutual Fund Dealers Association) licensed advisors can offer products like, savings accounts, GIC's, Mutual Funds and a few other less known products like Labour Sponsored Funds. Life Insurance companies have "investment" products very similar to mutual funds called segregated funds, and they can also sell GIA's (pretty much like a GIC).

Then you have IIROC (Investment Industry Regulators of Canada, used to be IDA or Investment Dealers Associationg) licensed advisors that can offer you all of the above plus individual securities like Stocks, Bonds, Limited Partnerships, ETF's etc.

In my career I started at our nations 2nd largest bank. I spent 8 years there starting as a teller and leaving as the Assistant Manager. I then started my Independent career (I will come back to what that means in a moment) at an MFDA licensed firm. And now will finish my last (hopefully 40+) years where I am at a full service IIROC firm.

When at the bank and my last firm, I can honestly say that I did a lot of very good financial plans and investment plans for my clients.

The transparency in offerings goes beyond what type of investment (mutual fund, seg fund, stock etc) and this could be an even bigger issue. Here is an example.

Back to cars, ok so you have decided on the Toyota and there is a dealership in town that has a car lot with 50 cars on it or there is another that has 5000. All else being equal, meaning service is great at both, they are equal distance to your home and everything else, where do you think your chances are better of finding the perfect fit for you? Same thing happens in this industry.

There are firms out there that have their own product. Chances are when you go and see an advisor from that firm, that is the product you are going to be offered. But are you told that there are 4950 more cars to choose from at the other location, or even worse that the EXACT same car is cheaper at the other location?
This is what I hate about my industry.

If I have one thing to offer you, I am going to fit it into your life somehow, and tell you how this one thing is perfect for you and how it is going to get you where you want to go. And if it IS the thing that you need, great but shouldn't you be told about other choices so that you can make an informed decision on what is best for your needs? Maybe a segregated fund is what you need, but if it is the only thing I can offer you, what are the chances I am going to tell you that what you really need is a mining stock.

Clients are left in the dark about a lot of things, but how and what your advisor gets paid and what they can and can not offer you should NEVER be hidden.

I would appreciate your comments or questions regarding these matters. Do you know HOW and WHAT your advisor gets paid and WHAT he/she can and can not offer you?

Ethan Sings: Making Gramma Proud

2009-07-15T21:33:00.005-04:00

Twitter: My Introduction

2009-06-29T23:13:00.006-04:00

Ok so I am pretty much still a twitter virgin but here is what I know so far.....

As a Facebook veteran I found out very quickly that it was completely different from facebook. Namely most of the people that I now follow and that follow me for that matter, are complete strangers in the "real world" (as an aside for fellow virgins, following is what you do on twitter).

So as I started to read posts or "tweets" I got sucked into lots of different conversations on just about every topic you could think of. It seems that there are a LOT of mommy's on there and to be honest I get the most joy out of listening and interacting with them. Most seem to be writer's. Some professionally like @yummymummyclub, @candacederickx, just to name a couple, and some just simply like to write and in my opinion are great at it, like @mrsloulou and @iDream1.

I wasn't really sure what to expect from the whole experience, but was hoping it would be a great place for business networking so naturally I put myself out there to anyone who wanted to listen and chat financial stuff. I quickly learned that it was NOT the way to do anything on twitter as I see it now.

After about 2 hours of that, I stopped and just started talking to people that seemed interesting. Since that time I have been a little more selective as to who I follow and who I allow to follow me. One of the great things or horrible things is that anyone from anywhere can follow you.

I am the first to say that you can never have too many friends, on line or in real life, but I am not sure why a teenage boy into heavy trance music in Utah, wants to follow an Investment Advisor in Canada. Not to mention I have found out that there are a few services that aim at getting you as many followers as possible.

One of the first followers that gave me the time of day was @bitofmomsense. Very polite, kind, funny and all around bright. Included me in conversations even when I didn't really have a right to be there. @Mrsloulou joined in that game too and now I have a few people on my list that I would call on-line friends already.

As for the business front, I have found some unique and truly amazing ideas and talent. @lauriestj and @candacederickx have an incredible idea that excited me about their prospects and I have nothing to do with it. There are some great photographers like @CLBuchanan that have great conversation as well.

News and ideas, funny quotes and sad news travels very quickly on Twitter through retweets or RT's. That is how I first heard about Michael Jackson, the gold being stolen from the Canadian Mint, Bernie Madoff's 150 years in jail and laugh almost every 5 minutes from some funny quip going around.

I do have to say in closing that, yes it is yet another learning curve for me, but so far it has been very fun and I very rarely find time for facebook anymore.

If you are like me and are intimidated by Twitter, sign up and look me up @patricknicol and join the fun.

A Day of Painting

2009-06-27T21:10:00.006-04:00

This in the before and after pictures of our house after a day of painting. A lot of work but worth every minute!

Break A Leg

2009-06-25T11:31:00.009-04:00

March 2008 to April 2009 was not a lot of fun.

March 2008 Resigned at firm that treated my like family and that I loved working at for 11 years.

April 2008 Started at new firm and am excited about the prospects of business going forward.

May 2008 Closed on new and moved into an amazing house in Stittsville. We got so lucky with the neighbourhood, couldn't have asked for anything better.

As we are re-papering all 1400 clients in the office, the building that we had called home for 6 years gets sold and new owner gives everyone 30 days to get out. (have you tried to find, outfit and move all services for a business in 30 days IMPOSSIBLE)

June-October 2008 Study and writ exams like crazy as well as searching and finding office space but having difficulty get the landlord to finalize lease..

November 2008 Start of a major market melt down, biggest in 70 years.

January 2009 FINALLY move into new office space.

Feb 22nd 2009 Broke leg playing hockey, yep and in the last week of RRSP season.

March 2009 The markets had started to recover but instead turn week again and test and in some cases beat November lows. World is coming to an end.

April-Present Alas world is not coming to an end and markets have been on a tear.

The leg is fine, the family is great, let's get to work!