Does this sound like you? Your investments are down. They never quite recovered from the markets of 2000, 2001 and 2002. Your “advisor” has little advice of any value. You keep hoping something will change. Your life is so busy you just don’t have the time to research your options. Oh well, maybe next year.

This is all too common among investors. Their portfolios aren’t performing and their futures look grim. A quick run through financial calculators shows most Canadians won’t have enough to retire if this trend keeps up. To succeed financially you must be proactive until you find an advisor who will be proactive for you.

So, what is the hold up? Why do so many stay with their institutions for so long. Many invest with their banks and find it easier to ignore the problem as they have had a long-running relationship with the bank. Making waves just isn’t a preferred course of action. Others have semi-personal relationships with their advisors. “She’s a nice person. I don’t want to hurt her feelings.” And for some it’s just pure unadulterated procrastination.

Missing a couple of good years can really affect your financial future. If you average an eight per cent rate of return over 10 years, $100,000 would become $215,800. Throw a couple of negative five per cent (-5%) years in there and you end up with $167,000. That’s almost $50,000 less! By finding an investment with a good (and consistent) track record you increase your probability of achieving financial success dramatically. Thirty per cent more money in this example, more in others.

Putting off the inevitable isn’t doing anyone any good. Your situation gets worse and, as a result, you get angrier. When you finally do move you are more apt to blow up than just make the change because, by that time, so much will have been lost or not gained. Even if you make money it may not be as much as you could have. This is known as opportunity cost.

Procrastination goes even deeper for some. A lady I met with recently showed me her financial picture. Right away I saw an enormous flaw. She had carried a $100,000 line of credit on her home for many years. Along the way she came into some money and invested it. It was now eight years since she made the investment.

I informed her that her best move would have been to pay off the line of credit then borrow to make the investment. Her average interest of $6,000 per year would have been tax deductible netting her a total deduction of about $48,000. She said she thought about finding a good Investment Funds Advisor but procrastinated until now. This cost her dearly.

My advice to those who have always wanted to make a change but never had the time: do it now. A phone call will take less time than it took to read this article. Do it because your future depends on it. Do it because you want to increase your probability of achieving financial success. Do it because there must be something better out there.

Do it because you deserve it.

This article was prepared by Joe Bowen who is an Investment Funds Advisor with Dundee Private Investors Inc., a Dundee Wealth Inc. Company. This is not an official publication of Dundee Private Investors Inc. The views (including any recommendations) expressed in this article are those of the author alone, and they have not been approved by, and are not necessary those of Dundee Private Investors Inc.

Listen to Joe on CFUN AM1410 Sundays 5 to 5:30 p.m. www.joebowen.ca 604-603-2336

Copyright North Shore Magazine Issue Dec 08 - Jan 09