Golden Rules Of Investing | Corona Virus and Your Retirement Savings

Eagle Bay Financial Services Newsletter
June 2020
Serving Canada`s Indigenous Community since 2002
Golden Rules Of Investing
Corona Virus & Your Retirement Savings
Perhaps you remember, during the early days of the COVID-19 pandemic, we all watched stock markets turn decidedly negative - quickly.
During this time, many of you had rightful concerns regarding your hard-earned savings and willingly reached out to our team to ask
questions such as:
“Is my Registered Pension Plan safe?”
“Is now a good time to make some changes?”
“How do I change my investments in my Registered Pension Plan?”
As Canada slowly reopens, the federal and local governments are warning of a second wave of COVID-19; while to date, we still do not
have a complete picture of how the severely the market may be affected in the coming weeks and months. As Frances Donald from
Manulife Investment Managements explains, “If we were in the midst of a baseball game, we’re probably only in the second inning—and
it’s still far from certain how it’ll end. We need to re-frame our thinking and find ways to help us navigate these uncertain times.”(1)
Financial markets go up and down – and
you want to be in the game when they
go up. That’s why it’s important to avoid
speculation of “What Is Going to Happen?”
Knowing your investment risk tolerance,
developing an investment strategy and
sticking to your plan are all tools in your
toolbox to help you achieve your investment
and retirement goals.
Let’s have a look at some proven ways to
help you focus on your long-term retirement
goals;
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Eagle Bay Financial Services Newsletter
June 2020
Serving Canada`s Indigenous Community since 2002
1. Understand Your Investment Personality & Risk Tolerance
Do coronavirus and the stock market changes have you worried about your investments? Perhaps you couldn`t sleep last night because you were
concerned about your savings?
We all make decisions in our daily lives, some with careful reflection and others without much thought. When it comes to successful wealth
building, it is vital to know the investment style that suits your personality and risk tolerance.
There are 5 types of investment personalities, and they dictate the way we invest our money;
• Conservative • Moderate • Balanced • Advanced • Aggressive
Your investment personality usually depends on your age and the comfort level in taking risks with your finances. If you are not sure about
your investment personality or wish to do an investment change, we strongly suggest you complete Investment Personality Questionnaire.
It will guide you to determine your risk tolerance and align your investments with your priorities.
Click here to access Your Investment Personality Questionnaire
Your investment personality usually depends on your age and the comfort
level in taking risks with your finances.
2. Determine Your Investment Strategy by Talking to Your Financial Advisor
Are you comfortable with investing over a long
period? What age should you retire? Are you
thinking of purchasing any big-ticket items
anytime soon, such as a house? Do you have
debt or Student debt? Do you need other
insurance coverage that is not included in your
group benefit plan?
The Rollercoaster Cycle of Investor Emotions
Proper investment strategy determines clear
goals, guides you through your investment
journey and helps with ups and downs in the
financial markets.
Chart source: Canada Life blog article “Don’t let emotions rule your investment plan”, https://www.canadalife.com/blog/investingsaving/dont-let-emotions-rule-your-investment-plan.html
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Eagle Bay Financial Services Newsletter
June 2020
Serving Canada`s Indigenous Community since 2002
In the early stages of the COVID-19 pandemic, you might
have considered changing your investment strategy.
However, it is proven that with a well-planned strategy, you
are going to be less likely to make rash decisions, and you
will get better returns.
Talk to your financial advisor ; she/he will help you to stay
disciplined and committed to your investment strategy. If
changes are needed, they can help guide you to suitable
solutions.
3. Maintain Calm & Stick to Your Plan
During uncertain times, many investors let their emotions get into the way of investing and react to the market after it has moved up
or down. If you are nervous about market volatility, have a look at these strategies to help with avoiding emotional investing;
Dollar-Cost Averaging happens when you invest at regular and smaller amounts of money rather than putting a large lump sum at
once. If you would like to learn more about dollar-cost averaging, click and review our previous publication here.
Diversification can`t protect you from the market ups and downs; however, it can help to lower the volatility. Simply, you are putting
your eggs into different baskets to spread the risk among your investments.
Dollar-cost Averaging and Diversification strategies can help you avoid
emotional investing.
Final Thoughts
COVID-19 has taught us that things can change very quickly, and financial markets will respond and react accordingly. We need to be
ready for more turbulent times ahead. Following your plans, maintaining calm, and sticking with the traditional investment philosophy
will help you to focus on your long term objectives despite what might be happening in the short-term.
References
(1) Donald, Frances. “ Market outlook: navigating the next chapter of COVID-19” https://www.jhinvestments.com/viewpoints/market-outlook/market-outlook-navigating-nextchapter-covid-19
This article is written with influence from the sources below;
https://www.canadalife.com/blog/investing-saving/understanding-risk-tolerance.html
https://www.canadalife.com/blog/investing-saving/dont-let-emotions-rule-your-investment-plan.html
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Eagle Bay Financial Services Newsletter
June 2020
Serving Canada`s Indigenous Community since 2002
Amanda Calla
Manager, Group Retirement
Amanda has been with Eagle Bay Financial Services Ltd since 2008. Throughout this time, she has been a Licensed Financial Advisor
providing services and support to all of our group retirement clients. In 2012, Amanda was appointed as Manager for our Group
Retirement department.
Amanda is currently working towards CEBS accreditation and an RPA designation through IFEBP. She is responsible for the group
retirement business development and ongoing group retirement service, and dedicated resource for plan members of our group
retirement clients, providing personalized one on one planning assistance.
Amanda is a wife, mother of 2 young adults and can be found on the soccer field, cheering for her kids on the sidelines or hiking the
North Shore trails with her mini bull terrier Twinkie.
Questions?
Don’t hesitate
to contact us.
Group Benefits Questions
Danijela
danijela@eaglefinancial.ca
Group Retirement Questions
Rita
rita@eaglefinancial.ca
Marketing & Promotions
AJ
msm@eaglefinancial.ca
About Eagle Bay Financial Services Ltd.
Eagle Bay Financial Services Ltd. is an aboriginally owned and operated independent advisor agency located in BC. We specialize in First
Nations Benefits and Retirement plans and offer customized plans that meet your needs and budget. We represent your best interest
with all of Canada’s leading insurers and retirement providers. You have a choice in who represents you.
Call us at 1.866.425.6527 and experience the Eagle Bay difference!
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