5 Golden Rules for a Golden Future

5 Golden Rules for a Golden Future

The only one responsible for your future is you!


Improve your Education


Dream and Dream Big


Start Saving Now


Become Financially Literate

INVEST IN YOUR FUTURE

AGENDA

•Who I am, who I work for and what I do

•Money Smarts

•Did you Know….

•Planning for the Future

•What is saving

•What is investing

•Types of Investments

•Becoming an Investor

•Questions / Contact us

WHO I AM, WHO I WORK FOR AND WHAT I DO

•Ainsley Cunningham

•B.A., B.Ed., securities industry experience

•Manitoba Securities Commission

•Government Agency

•Self Funding

•Make and enforce rules

•Mandate - To protect the public and ensure that the markets are running fairly and efficiently

•Education and Information Coordinator

•TV Programs, media relations, public presentation, industry events, marketing, national initiatives, web site development

MONEY SMARTS

Financial Literacy means being able to earn money, keep track of a bank account, use credit wisely and put cash aside for future needs. Having money smarts allows women to:

•Be self sufficient

•Have power

•Enjoy equality

•Make Choices

DID YOU KNOW….

•Canadian Youth earn earn money from part-time jobs, allowance and gift money.

•Canadian youth spend 14 billion annually (discretionary income)

•Money is typically spent on food, entertainment and clothing

•Debt among Canadians is extremely high

WHY IS PLANING FOR OUR FUTURE WHEN WE ARE YOUNG IMPORTANT?

•Cost to achieve our dreams

•Time is on our side (Value of compounding)

•Few expenses

•Relatively easy (10% rule and pay yourself first)

•Good financial management habits formed when we are young are generally carried over into adulthood.

WHAT IS SAVING?

•To put aside

•To accumulate

WHAT IS INVESTING?

•At its most basic, it is giving money to someone else with the expectation you will get a return

•What the return is will depend on what you invest in.

WHAT IS INVESTING?

There are three characteristics that apply to all investments:

Expected Return - Interest, dividends or capital gains you expect to receive.

Risk - The possibility of losing some, all or more than the amount you invested or that you could earn a lower return than expected.

Marketability - How easy it is to sell or redeem the investment.

Understanding these characteristics is key!

TYPES OF INVESTMENTS

•Cash and Equivalents

•Fixed Income

•Equity Investments

•Mutual Funds

Types ofInvestments

Advantages Disadvantages

Savings Account Safe – insured by gov’t upto a limit

Pays interest Running record

Interest rates are low Interest is taxed

GIC’s Safe Higher interest than savings

Keep money on deposituntil it matures

Interest is taxedBond Safe investment small

denominations

Interest not as high as forother investments

Interest is taxed Hold for several years

Mutual Funds Safer than corporate stocks Allows diversification Invest smaller amounts

Market Value goes up anddown

Stocks Unlimited potential returnon investment

Returns may decline

BECOMING AN INVESTOR•Know Yourself

•Assess you financial situation- communicate clearly any changes

• Identify your goals

•Know your tolerance for risk

•Know you Adviser

•Credibility / Trust / Comfort

• Investment Approach /Fees - cost of investing/Customer Service

•Become Informed

•Newspapers, books and magazines

•Television and research reports

•Classes

•Talk to the Commission

RESOURCES

•Street Cents

•MSC Web site (Other provincial web sites)

•Newspapers, books and magazines

•Professionals, friends and family

•Banks Credit Unions, Mutual Fund Dealers and Brokerage houses

Very important that you take the time to do research because no one cares as much about your financial situation as you do.

QUESTIONS? / CONTACT US

•Manitoba Securities Commission

•Phone 945-4733

•web site: www.msc.gov.mb.ca

Documents

5 Golden Rules for a Golden Future