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 age 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

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ? $10,737,418

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 St. Mary Avenue Winnipeg, Manitoba R3C 4K5 Tel. (204) Web: