Perspectives – Sept 26th, 2012

September 26, 2012

Not what we have, but what we enjoy, constitutes our abundance.

— John Petit-Senn

Having a long term goal of happiness is often a given – how we each achieve this happiness may vary. A Certified Financial Planner from Park City Utah reminds us that although goal setting can be helpful – how we go about setting and moving towards our goals is what matters. Make it about the journey not the destination.

Article – “One Key to Happiness: Let Go of Some Long-Term Goals”

Time to invest like its 1979

“The only thing new in the world is the history you do not know” – Harry S. Truman

Stock purchases are at historical lows, bond purchases at historical highs. Few investors are loading up on stocks in their portfolio’s as many are more concerned with the return of their capital rather than the return on their capital. This too has happened before and this article describes that time and the strong equity returns that followed.

Article – Time to Invest like 1979

“Equities today are more attractive relative to bonds than at any other time in history.”
— Burton Malkiel, in his August 14 WSJ op-ed, “Even Amid the Current Turmoil, Stocks Still Beat Bonds”

Financial Decision Making

How we make decisions, especially financial decisions, has a profound impact on our lives. Daniel Kaheneman, a Princeton psychologist, won a Nobel prize in economics for his ground-breaking research on investor behaviour.

He offers three pieces of advice for investors: First, frame decisions broadly rather than narrowly. Next, be aware of the pitfalls of mental accounting. And finally, be conscious of your emotional response when making decisions.

Video – How to make more rational financial decisions

Everything that diminishes temporary volatility diminishes permanent returns. For the long term investor to sacrifice permanent return in order to reduce temporary volatility is inherently irrational.
— Nick Murray

Carney Lectures Canadian Companies sitting on cash

Canadian businesses are sitting on more cash than they have had for years. Our Bank of Canada governor wants them to do something about it.

Article – Carney lectures Canadian Companies

You can train your brain to be more positive – and likely happier!

Exercise is not only for the body – in fact, if I had to choose, I’d want my mind to last longer anyway! This article suggests we can train ourselves to be happier.

Article – Self help for skeptics

Does your money have purpose?

Money without purpose languishes. Money represents effort, energy, risk, time and value. Without purpose, money loses its value and diminishes the energy expended to create it.

Our money can have many purposes – retirement, education, leisure, charity and lifestyle. Clarifying and acknowledging each purpose increases money’s value and that of the owner and increases the likelihood of our money achieving its purpose.

If you don’t know where you are going, you will probably end up somewhere else.
~ Laurence J. Peter

Financial Basics for Students

The Financial Consumer Agency of Canada is a federal government website that provides independent information on financial basics – send this link to your university student – you never know!

Article – Financial Basics for Students

Personal – Sept 26th, 2012

With my son off to Bishops for his first year in fine arts and my daughter traveling in India – I’m experiencing this “empty nest syndrome”. It’s a strange feeling – very quiet, no one to make dinner for, no one to nag about the mess or “not” to get help from. It feels great!
I have confirmed that I will be joining Sasha for a 10 day trek in Nepal at the beginning of November. We are planning a “Tea House Trek” which is really hiking from village to village and staying at local B & B’s the locals call Tea Houses. After trekking through Kilimanjaro last year, I’m okay with not doing the tenting thing and experiencing local culture.