Freedom Management Group

Greece Challenges and the Stock Markets

rob — Tue, 25 May 2010 16:45:46 +0000

There has been a lot of excitement in the media lately regarding the recent volatility (mostly downward) in the stock markets of the world. The “recency” effect is’ human nature, and difficult to overcome. This effect makes us think that recent experience (good or bad), will continue indefinitely into the future. Starting in March of 2009, we had a strong market recovery, that people thought would bring in a new era of “stability”. We had over a year of relative calm, until the recent challenges in Europe. People thought the “calm”, positive gains would continue indefinitely. In past economic recoveries, it is normal to take a “break”. It is typical to have a 10% (or more) “pullback” in a bull market. The recency effect now feels like the decline will continue “forever”- just like it did in the Fall of 2008, or post-9/11 in 2002.

More than 70% of the companies that reported earning in the past quarter EXCEEDED analyst expectations on profitabilty. Employment levels in North America (where most of us hold our investments) have improved. Despite the pullback, we are still break-even for most accounts on a year-to-date basis, and substantially ahead of where we were a year ago.

The best way to overcome the fear at a time like now is to revisit your financial plan. It will provide the foundation for your decisions, and prevent emotional short-sighted decisions from hindering your progress. Stick with your strategy- since it is designed to provide you with the best opportunity to accomplish your goals. If you haven’t had your plan updated recently, (or worse yet, have no plan!) give us a call at (807) 467-4425 and talk to Rita about setting up a meeting. Feel free to check out the other sections of this site, too.

Spring Update

rob — Tue, 20 Apr 2010 12:34:11 +0000

We look forward to sharing some exciting things that will add to your experience working with The Freedom Management Group.

We are on the final stages of creating our online newsletter, which will be delivered electronically every month. There will also be an archive at this site, so you can review past newsletters from a central location.

A great new complement to the Freedom Process related to Cash Flow management is also in the final stages, and the beta testing with a select few existing clients has gone well. We look forward to rolling out this process en masse before June 1st. More details will be included in the monthly email newsletters.

We have also decided to include high definition video to our electronic newsletters. This will allow viewers (you) to experience receiving the information in a way that is in alignment with your viewing preference.

If you have an article suggestion, or any feedback related to the newsletter, we would be happy to incorporate it into a future article topic or series.

As always, if you would like to meet with any member of the team, call (807) 467-4425 to set it up!

Make 2010 a Great Year Financially!

rob — Wed, 20 Jan 2010 15:41:39 +0000

January is usually a time for reflection and renewal.
2008 and the first few months of 2009 were very difficult times to be an investor.
Times of turmoil (worst market in 2008 since 1931) usually create opportunity for benefits (2009 had a great recovery). Let’s continue that theme.

Looking back, which clients “weathered the storm” the best?
Answer: Those who had a financial plan/strategy to help guide their decisions through the turmoil.

The 2010 resolution for the Freedom Management Group is to encourage every client to update their plan (or create a new strategy).

Benefit: Creates clarity and confidence about the future, and guides financial decisions along the way, helps us measure progress, too.

Call Rita at 467-4425 to set up your appointment!

Opportunity: Better communication. We have updated our systems in 2009 to be able to provide more frequent contact and updates to clients. Having regular contact will help keep your plan up to date. Better information and communication should increase confidence in your strategy.

Benefit: An up to date plan, and regular, appropriate communication will increase your confidence that you are on the right track. If you don’t receive an email from us in the next month, it probably means we don’t have your latest email address. Please email Rita at rboutette@copperfin.ca to help us update the system, or call 467-4425. We will strive to have the communication program complete by March 1, 2010.

Opportunity: The government has created several new strategies in the past ten years to assist people in their goal accomplishment efforts.

Benefits (for most people):

1. TFSA (Tax-Free Savings Account)- Introduced in 2009, allows every adult in Canada to set aside $5000 per year to an investment. You don’t get a tax break on the deposit, but any gains are received TAX FREE when money is removed. Fantastic benefit- a couple can sock away an extra $10,000 per year, and pay no taxes on the gains. This plan is good for almost all adult Canadians, especially those who have non-registered money, and want it in a more efficient account. It is also great for people who can’t benefit from RRSP contributions.

2. RRSP (Registered Retirement Savings Plan)- Allows depositor to make tax deductible (before tax) contributions to a tax deferred (pay taxes later) plan. This is especially useful for earners who expect to be in a lower income tax bracket in post-work. (High tax break while working, lower rate when money is removed.) The deadline for depositing to RRSPs to deduct against your 2009 income is March 1, 2010. Call Rita at 467-4425 to line up an appointment to see if you can benefit.

Benefits (for some people):

3. RESP (Registered Education Savings Plan)- First introduced in 1998, this plan is great because the government kicks in ‘”free money” in the form of government grants. For every $100 you deposit to the plan, the government deposits $20 (more if your family income is below $78,000). The deadline to invest in this plan is the end of the year your beneficiary (usually child or grandchild) turns 17. It is better to start early to benefit from more years of contribution, more growth, and more grants.

4. RDSP (Registered Disability Savings Plan)- New in 2009, this plan allows disabled people to receive government grants and benefits for opening a plan. There is a generous matching opportunity ($3 added for every $1 added in most cases). In fact, a disabled person doesn’t even need to deposit money to get some of the benefits. If you or someone you know is disabled, have them call Rita at 467-4425 to find out if they can benefit from the program.

Make 2010 your best financial year ever!

Call us today (467-4425) to update (or create) your financial strategy (see www.freedomprocess.com for more details.) The EXPERIENCE of going through the PROCESS of creating a SOLUTION will give you the CONFIDENCE and CLARITY to give you the best chance to meet your objectives for the reasons that are important to you.

Client 2010 To Do list:

- contribute or open a TFSA.

- top up or make RRSP contribution (Deadline for 2009 tax year is March 1, 2010)

- check out www.freedomprocess.com to learn more about the planning process.

- schedule an appointment for a Freedom Discovery meeting/update (467-4425-Rita)

- Call to make an appointment to discuss how I can have a great financial 2010!

What a year its been…!

rob — Tue, 24 Nov 2009 20:07:53 +0000

As we are nearing the end of 2009, it’s great to reflect on it’s impact on our financial lives. We entered the year with great fear, perhaps the next “Depression” was upon us. After all, 2008 ended as the worst year for capital markets since 1931! (General markets were down about 50% from their peak.)

In March, world markets seemed to bottom out, with the recovery also matching historical precedence in its strength over a relatively short period of time.

Who “survived the storm” the best?

Generally, those who had a strategy to follow. They were able to revisit their strategy, determine how recent events impacted on their strategy, and make the necessary adjustments. These people were able to take proactive action and felt confident that they knew the impact of the circumstances on their plans.

Who suffered the most during the storm?

Generally, those who were “investment-focused” suffered the most. Seeing parts of a portfolio falling 50% or more can cause a lot of sleepless nights. A lack of a written strategy caused well-intentioned people to make decisions based on recent events (and their emotions), rather than based on their objectives. A couple clients who succumbed to their emotion (against their strategy and my advice) suffered a “double whammy”- temporary losses while prices were down, and missed opportunity on the recovery!

Fortunately, the vast majority of clients were able to reflect on the circumstances of how their strategy was impacted, and make rational decisions based on the plan.

If you were impacted by the craziness of the last couple years, and would like to discuss how you can have a strategy built in alignment with your highest priorities, give me a call, or email. (807) 467-4425

Enjoy the last part of 2009, and all the best in 2010!

Sincerely,
Rob

The Freedom Process

admin — Mon, 11 May 2009 15:56:46 +0000

There has been a lot of activity around our office lately. If you have not been by to see us in the last month, you may not know that we have expanded. (in more ways than one).

In order to provide more people with a better experience, we have moved our office to a bigger office at the south-west corner of the Kenora District Credit Union (main branch) at 101 Park Street. This allows us to have our own entrance, reception area, file storage, and meeting area, separate from the main branch of the credit union. This allows for more privacy, and a better overall environment for you, when you come to visit next.

We changed offices and added to our team to serve you better than ever. We have built a great process that is continually being improved. It is called The Freedom Management Process. It is designed to give you the opportunity to discover your potential, and to build the strategy to accomplish that potential, for the reasons that are important to you. The various stages of the process are described in more detail later in this note. If you have not experienced the process, the best way to learn about it is to experience it. Phone Rita today at (807) 467-4425, and we can get the ball rolling.

In alignment with our main process, we have also decided to provide our company with a distinctive name. The new name is called The Freedom Management Group. Our new logo is displayed beside our new entrance, and within our new office, as well as on our new web site (www.freedomprocess.com), and letterhead on the following page.

We look forward to meeting with everyone to share in the progress that we have made in order to help you have a bigger future. Never hesitate to contact us: the best way is through Client Services Manager, Rita Boutette at (807) 467-4425 or rboutette@freedomprocess.com.

Thanks to everyone for contributing to our progress, so that we are in a better position to help contribute to your progress. We are all excited about helping you identify and have greater ownership of your bigger future, through The Freedom Management Process.

Sincerely,

Rob Aitken
Senior Facilitator/Creator
The Freedom Management Process