Tuesday, May 26, 2015

Assante Wealth Management "just good advice" for investor & entrepreneurs

Top Ten Lessons Entrepreneurs Can Apply To Investing  

Before becoming a Financial Advisor for entrepreneurs in Toronto, I owned, operated and eventually sold two language schools.  Like all small business owners, I had to make the best use of my financial resources. When I reflect upon the top ten questions that people ask me about their financial affairs, I find they are not so different from the questions entrepreneurs deal with in their business. In my Entrepreneurs Investing Strategies Series, I will explore each of the Top Ten.
Entrepreneur Investment Strategy #7: Are We There Yet?

When do you know if your business has flourished?

S.M.A.R.T business goals are Smart, Measurable, Achievable, Realistic and Timely. First, make a plan, establish S.M.A.R.T. goals for your business (e.g. number of customers, branding, sales, profitability and so on) and then get to the hard work of implementing these goals so that you are on your way. You should also set deadlines to achieve your targets and measure progress towards completion. The milestones you set and see yourself achieving are part of the thrill of entrepreneurship.

If you get off track, you analyze, adapt and possibly recalibrate. With this kind of goal setting, measurement and focus, you can not only see the finish line, you can proactively reach your destination, whether it takes five years, ten years or more. Commitment to business success takes real passion, the ability to take smart, calculated risks, and perseverance. Advice from professionals and fellow entrepreneurs assists along the way. When there are significant profits left at the end of the year that you won't need to reinvest the next year, your efforts are paying off.

Investing is not much different. Rare is the investor who has no goals. Set a specific goal (e.g. savings targets) and define why you are saving and when you will need the money. Once you've done that, the finish line is clearly in your sights. Let's say you want to save $50,000 to pay for your child's university education, and you want to have this money available in 15 years. When we know how much you will invest each year, the amount of risk you feel comfortable taking, and what the power of compounding will add to the growth, we can then look at what investments to use so that you are most likely to reach the goal. Tracking is easy and as the 15-year deadline approaches; we can add more or reduce the investment as needs be.

Do you want to save up for a comfortable retirement affording you and your spouse the opportunity to do the trips abroad that you sacrificed while you built the business? Calculate what you'll need, start putting the funds aside and investing them for the long term and watch your wealth build up. Readjust as you get closer to those "golden years" to protect the hard-earned income. Commitment to growing your wealth takes knowledge, good advice and discipline. Your Financial Advisor is a key player in your success because they have helped other people reach their goals.
Commitment to growing your wealth takes knowledge, good advice and discipline. Your Financial Advisor is a key player in your success because they have helped other people reach their goals.

It's just good advice.

Marylou Heenan, Financial Advisor
Assante Capital Managment Ltd.

Assante Capital Management is a member of the Canadian Investor Protection Fund and is registered with the Investment Industry Regulatory Organization of Canada.

This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc. 

Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Note: Leveraging carries its own risks and is not for everyone. Talk to your financial advisor for advice on properly managing those risks.

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