CCS Newsletter: Spring 2005

Spring is finally here!

After a long winter, it is good to be able to announce that spring is finally here! With the official onset of spring, we are glad to see the snow disappear and see the plants begin to pop up through the ground. Oh, the wonder of life! Over the next while, these plants will develop and finally produce beautiful flowers for our enjoyment.

There are a number of parallels between the growth of these flowers and the growth of our investments. Matthew 25:14-29 is the Biblical account of the parable known as the talents. The common everyday occurrence Jesus relayed might sound like this today: A wealthy man called in three financial advisors and delegated to each of them part of his wealth asking them to make a return for him. Two of the individuals did; one did not. How does that relate to our spring flowers?

First, the quality and type of the flower have much to do with quality and type of bulb planted. The same is true for investments. I am surprised to see individuals regularly who hold risky investments of inconsistent history and they expect consistent low risk returns. The quality of the long-term results will be largely dependent on the type and quality of your investments.

Second, the growth of plants takes time; often years. The same is true with our investments. Many who lost a significant amount during the market downturn, plan on making it back over a short period of time. Be cautious. Those who promise large returns in today's environment usually don't fully explain the risk of the investments. As well, being good stewards of the Lord's money, we need to be cautious of the risk we assume on the Lord's money. Like a plant, a good quality investment will, over time, continue to grow. Do not accept the standard answer that 'all investment continually go up and down.' That is not true. Over a three-year window, your investments must be producing an acceptable return above that of a risk free investment like a GIC.

Finally, to allow the flower to continue to provide enjoyment, you must maintain it. The same holds true in your investments. Make sure you have consistent reporting from your advisor on not only the success of your plan but also adjustments that might be required. Do not allow yourself to talk to your advisor only when he/she has something to sell you. Their advice should be ongoing regardless of their being paid to talk with you.

Enjoy your plans this spring as they grow and blossom. Enjoy your investments as they grow also.

A corporate attorney sent the following out to his employees in his company:

• The next time you order cheques have only your initials (instead of first name) and last name put on them. If someone takes your cheque book , they will not know if you sign your cheques with just your initials or your first name, but your bank will know how you sign your cheques.
• Do not sign the back of your credit cards. Instead, just put "PHOTO ID REQUIRED"