September, 2009
Volume 2, Issue 4
In This Issue
MFG FINANCIAL DISPATCH
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Win One of Two $25 Starbucks Cards
Where There’s a Will…
MFG Financial Dispatch is our monthly email newsletter designed to keep you up to date on timely financial issues that may affect you and to pass on timeless information and advice regarding financial issues. Articles are generally brief and to the point but you’re always welcome to call or email us for more detailed information. Archived issues are available in the Client Centre on our website (macintoshfinancial.com).
We hope you enjoy reading our newsletter and find value in the information provided. If at anytime you would prefer not to receive these communications, please reply to the email with “Unsubscribe” in the subject line and you won’t receive another one.
Win One of Two $25 Starbucks Cards
We want to congratulate our two Starbucks card winners from our August draw. Frank Schindelka and Daniel Singh each received a $25 Starbucks card just for reading our newsletter and correctly answering four questions.
Could this be your month to win? Just click on the word “WIN” and it will take you to a very short (four questions) multiple choice knowledge questionnaire on our website. (All the answers to the questions are found in the articles in this newsletter.) Once again we’ll make a random draw from all the correct entries and award a $25 Starbucks card to each of the two winners. Good Luck!
Sometimes Boring is Best
Logically, we all know that “buy low – sell high” is the way to make money with investing. Unfortunately, the reality is that without a disciplined approach and iron-will patience, most investors end up buying high and selling low. With the recent rebound in the financial markets and in the economy, there is a temptation to think that everything’s back to normal and “now’s the time to start adding to my investments”. We thought this would be a good time to re-visit a very simple and boring yet sophisticated investment strategy – dollar cost averaging.
Dollar cost averaging is the strategy of investing the same amount at regular intervals - usually monthly and usually using mutual funds because almost any amount can be invested and fractional units can be purchased. As prices fluctuate, you will buy more shares when markets are low; and fewer shares when markets are high. By following this simple strategy, you can often lower the average cost of your investments and if you have lower costs going in, you will have higher gains when you eventually sell.
Some key advantages are:
· You don't have to guess when to buy, so you may sleep better at night.
· You don't have to invest a large amount all at once; smaller amounts are easier to work into your budget.
· There’s no need to study trends or be a market expert - professional money management is what the mutual fund provides.
· The temptation to buy wildly when prices are increasing and stop buying when prices go down is eliminated.
Dollar cost averaging can be a great way to begin a regular investment plan, and can be very profitable in the long run. If you would like more information on dollar cost averaging or you would like to start your own plan, please call us.
Where There’s a Will…
The cornerstone of estate planning is the will. Making a will doesn't need to take a lot of time, it doesn't cost too much, and it can save your heirs thousands in taxes and legal fees. It also can help to keep the peace between your heirs and reduce the potential for legal quarrels after you’re gone. If you can avoid all those costs and problems by hiring a lawyer to draft a will for $200 to $300, why wouldn't you?
Well, it’s been reported that as many as one half of Canadians don’t have a valid will. Often times, it’s something that’s been put on the backburner for one reason or another and just never gets done until it’s too late. Some people don’t like to face the reality of their own mortality and believe not dealing with it will somehow prevent the inevitable from happening.
If you are one of the many who doesn’t currently have a will, we would strongly encourage you to make that a top priority. If you have a will but it hasn’t been reviewed and updated for several years, please take the time to do that as well. This is especially important if there have been any major changes in your life or in the lives of your heirs since it was first drawn up (such as marriages, divorces, births, deaths). The peace of mind that having your will in place will bring is well worth the cost of having it drawn up.
Some major decisions that a will deals with are:
- Who will be Executor and be responsible for carrying out your wishes with your estate?
- If you have young children, who will become their Guardian and take care of your children?
- How do you want your estate to be divided and over what period of time do you want it distributed (particularly if you are concerned that your heirs may not be financially mature enough to handle getting their entire share all at once)?
There are various will kits available that are very inexpensive to buy but for such an important document we strongly recommend having it done professionally either by a lawyer or by a notary public. That way you know that it’s done right!
If you have questions about wills or other aspects of estate planning, please contact our office. Although we can’t provide you with legal advice, we may be able to point you in the right direction to the information you need.
Our website address is macintoshfinancial.com . If you are on your smart phone you can also find our contact information on our “.Tel” page at macintoshfinancial.tel.
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