Beyond Numbers: Lessons for Life and Investments

Recently I was listening to David Booth (chairman and founder of Dimensional Fund Advisors and, back in the 1970s, one of the creators of the world’s first index funds). He spoke about challenges in life and how they may relate to investing. He suggested that by combining our life and investment philosophies together, we can use money as a tool that empowers our plans rather than simply being a goal in and of itself. Here are some of the takeaways from what he has learned in his long career…

1. Uncertainty creates opportunity. Without risk there is no reward. Whether you are considering a move to a new city or a potential career opportunity, we often don’t know what the future will hold; however, these experiences can help us grow and change our lives. Investing involves risk too, but there’s also risk in not investing.

2. Plan, don’t predict. No one has a crystal ball. It is wise to consider a broad range of possible outcomes and prepare accordingly. Financial writer Morgan Housel likes to say “Save like a pessimist and invest like an optimist”. I like that line.

3. Flexibility adds value. For example, when you are shopping for a new car perhaps you have a preferred colour in mind; however, if you are willing to be flexible, maybe you can find a better deal that gets you a new vehicle sooner and at a lower cost. Being flexible with your investments can yield big benefits too.

4. Get the power of compounding working for you. Even small decisions today can magnify over time to have a large impact. Albert Einstein is quoted as saying “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Very wise.

5. Control what you can control. Make informed decisions. In investing this may include how much you save, the risks you are willing to take on and the professionals you use to ensure you have got an investment plan that is right for you.

6. Finally, tune out the noise. Do not allow yourself to get derailed by pundits, detractors or influencers. While it can be challenging at times, it is important to stay focused on your goals and keep your emotions in check. This can be especially difficult for new investors, but a good financial planner can help share their experiences and educate clients along the way.

-Ryan Secord, B.Comm (Hons), CIM®, CFP® Senior Investment Advisor,

Ryan Secord is a Senior Investment Advisor at Endeavour Wealth Management with iA Private Wealth Inc, an award-winning office as recognized by the Carson Group. Together with his partners he provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Ryan Secord who is a  Senior Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Senior Investment Advisor can open accounts only in the provinces in which they are registered. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trade mark and business name under which iA Private Wealth Inc. operates.

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