A Peace Of Mind Portfolio
December 18th, 2010 10:06 AM
His radio show “Money with Joe Bowen” is broadcast weekly on 1410 CFUN. He gives regular public seminars on financial topics. He publishes articles analyzing investment strategies and financial issues. And his clients are spreading his investment advice by word of mouth. Joe Bowen’s aim of becoming “the North Shore’s most famous man” is becoming a reality, and we take a look at the philosophy that’s getting him there.
by Peter Hammond
“Relaxed. Hands-behind-the-head, feet-up relaxed.” That’s how Joe Bowen describes the attitude a large majority of his clients share during the recent turmoil in financial markets.
“Most of the people I work with – who subscribe to a conservative investment philosophy and have trusted my advice in arranging their finances – have been absolutely relaxed.”
Despite his energetic approach as an Investment Fund Representative with Dundee Private Investors, Inc., and an Insurance Advisor, Bowen is almost as relaxed himself. It comes from knowing his stuff.
On his Sunday radio show, Bowen is comfortable behind the microphone. After years of in front of audiences, conducting hundreds of financial seminars and public meetings, he’s more than ready to explain any aspect of investment strategy.
“I usually have a good answer,” he says. “But in working with individual clients, it’s actually the questions that are the most important.”
For example, he says, one of the key questions he asks clients – especially those counting on their investments to provide for a comfortable retirement – is: “What will it take for you to believe that, financially, everything is going to be alright?”
“Many people are tired of the up-and-down markets,” Bowen notes. “Many have portfolios that may have been, say, $500,000 and are now down to $400,000 or $450,000. I'm finding that more and more people are coming to me for the advice that I have become known for. They want their funds protected. They want to be in the market, but without the possibility of losing their principal -- and without having to resort to low-interest GICs.
“I provide this service to them. During the recent market volatility I have found that all of my clients who are invested in this way are absolutely comfortable -- they know for certain what their minimum future retirement income will be.”
Until fairly recently, those seeking a solid financial institution looked for a solid building. “But true security doesn’t necessarily come from a bricks-and-mortar office or free parking,” Bowen says. “Many of my clients can't travel or don't like to travel to my offices. They prefer that I come to their homes. I think this is also beneficial to them as it empowers them. We are on their property, and they are in charge. It reminds us all that I serve them -- they don't have to sit in my waiting room.”
Too often, banks advise clients to put funds into “laddered GICs.” In theory, this enables an investor to take advantage of higher rates that come along from time to time. However, in reality, there are two big problems. First, most money is at a low GIC rate. Second, the investor has to keep track of all the maturity dates in order to take advantage of this strategy, but usually the bank just rolls these GICs over into new ones, and the investor does not get what little advantage this strategy could provide.”
To some extent Guaranteed Income Certificates are guaranteed to fail, Bowen comments. “A GIC might yield four per cent, and that sounds like growth. But if it’s held outside an RSP, about one-and-a-half per cent will go to taxes, leaving about two-and-a-half per cent. So, with inflation around three per cent, the investor is actually losing real money. Sadly, they believe they’re using GICs because these ‘protect their money.’ People can do better.”
Most of the clients Bowen serves are seniors. Many are women whose family finances have changed. “In my experience, when a woman becomes divorced or widowed, she may need to reconsider how her investments are handled,” he says. “Her former partner may have had an aggressive portfolio, and the level of risk is not right for her needs. Or she doesn’t have a good connection with the advisor they worked with. For some, money represents a legacy that deserves to be protected.”
Clients often approach Bowen when considering how to deal with estates and their repercussions for future generations. “For example, those with a vacation home that they want to leave for their family – they need to provide for the tax implications of transferring it.”
Sometimes, the advice goes beyond number-crunching. “There is a whole generation who have built this country through their hard work, and they want to make sure their families benefit. But they don’t want to have their children or grandchildren overwhelmed by a large estate, or they want to ensure their kids can enjoy life without being distracted by an eventual inheritance.”
Bowen enjoys helping families with the financial structures that achieve those goals. “And I find I can help them work through the non-financial issues that go along with those decisions.”
It can help to present several scenarios. Recently, when a client inherited about $450,000, he asked Bowen how to invest it. “His only concern was how much risk he should take. But he had an open mortgage of about $400,000 on a new home, renovations to do and a car that needed replacing. I suggested we look at what would happen if he paid off the mortgage – he would be debt-free, with cash to buy a car and complete his renovations.
“I then asked him if he would then be prepared to borrow $450,000 to buy some mutual funds. Of course I knew the answer before he even responded with a resounding ‘No way.’ I put his finances into perspective. This allowed him to understand that investing that money outright was a mistake. But if he insisted on doing so, I pointed out, this way he could write off the interest on that loan – easily more than $20,000 per year. He went ahead and paid off the mortgage. We were far more conservative with his investments. He still thanks me for this guidance every time we meet.”
In his seminars and articles, Bowen presents new ideas and strategies that interest members of his audiences. “People often then ask me for details and I will usually suggest they become a client or take the ideas to their advisor. In most cases they begin to wonder why they have an advisor to whom they take ideas, rather than one that they’re getting new ideas from…”
People can be their own worst enemies when there’s a need for change,” Bowen says. “But delaying a move to get better advice can be costing them tens of thousands of dollars – and over the long term this can make a huge difference.”
His advice: If you need to make a change, just do it. “I often suggest clients write a note to their former advisor, letting the advisor know they’ve moved on and thanking them for their help. Anyone in the industry knows that change is part of the business – there’s no reason for hard feelings.”
Joe Bowen is a registered Mutual Fund Representative with Dundee Private Investors Inc. (“Dundee Private Investors”), a Dundee Wealth Management company. This is not an official publication of Dundee Private Investors and the views (including any recommendations) expressed in this article have not been approved by, and are not necessarily those of, Dundee Private Investors.
Listen to Joe on CFUN AM1410 Sundays 5 to 5:30pm www.joebowen.org 604-603-2336 jbowen@dundeewealth.com
Copyright North Shore Magazine Issue Apr - May 08
by Peter Hammond
“Relaxed. Hands-behind-the-head, feet-up relaxed.” That’s how Joe Bowen describes the attitude a large majority of his clients share during the recent turmoil in financial markets.
“Most of the people I work with – who subscribe to a conservative investment philosophy and have trusted my advice in arranging their finances – have been absolutely relaxed.”
Despite his energetic approach as an Investment Fund Representative with Dundee Private Investors, Inc., and an Insurance Advisor, Bowen is almost as relaxed himself. It comes from knowing his stuff.
On his Sunday radio show, Bowen is comfortable behind the microphone. After years of in front of audiences, conducting hundreds of financial seminars and public meetings, he’s more than ready to explain any aspect of investment strategy.
“I usually have a good answer,” he says. “But in working with individual clients, it’s actually the questions that are the most important.”
For example, he says, one of the key questions he asks clients – especially those counting on their investments to provide for a comfortable retirement – is: “What will it take for you to believe that, financially, everything is going to be alright?”
“Many people are tired of the up-and-down markets,” Bowen notes. “Many have portfolios that may have been, say, $500,000 and are now down to $400,000 or $450,000. I'm finding that more and more people are coming to me for the advice that I have become known for. They want their funds protected. They want to be in the market, but without the possibility of losing their principal -- and without having to resort to low-interest GICs.
“I provide this service to them. During the recent market volatility I have found that all of my clients who are invested in this way are absolutely comfortable -- they know for certain what their minimum future retirement income will be.”
Until fairly recently, those seeking a solid financial institution looked for a solid building. “But true security doesn’t necessarily come from a bricks-and-mortar office or free parking,” Bowen says. “Many of my clients can't travel or don't like to travel to my offices. They prefer that I come to their homes. I think this is also beneficial to them as it empowers them. We are on their property, and they are in charge. It reminds us all that I serve them -- they don't have to sit in my waiting room.”
Too often, banks advise clients to put funds into “laddered GICs.” In theory, this enables an investor to take advantage of higher rates that come along from time to time. However, in reality, there are two big problems. First, most money is at a low GIC rate. Second, the investor has to keep track of all the maturity dates in order to take advantage of this strategy, but usually the bank just rolls these GICs over into new ones, and the investor does not get what little advantage this strategy could provide.”
To some extent Guaranteed Income Certificates are guaranteed to fail, Bowen comments. “A GIC might yield four per cent, and that sounds like growth. But if it’s held outside an RSP, about one-and-a-half per cent will go to taxes, leaving about two-and-a-half per cent. So, with inflation around three per cent, the investor is actually losing real money. Sadly, they believe they’re using GICs because these ‘protect their money.’ People can do better.”
Most of the clients Bowen serves are seniors. Many are women whose family finances have changed. “In my experience, when a woman becomes divorced or widowed, she may need to reconsider how her investments are handled,” he says. “Her former partner may have had an aggressive portfolio, and the level of risk is not right for her needs. Or she doesn’t have a good connection with the advisor they worked with. For some, money represents a legacy that deserves to be protected.”
Clients often approach Bowen when considering how to deal with estates and their repercussions for future generations. “For example, those with a vacation home that they want to leave for their family – they need to provide for the tax implications of transferring it.”
Sometimes, the advice goes beyond number-crunching. “There is a whole generation who have built this country through their hard work, and they want to make sure their families benefit. But they don’t want to have their children or grandchildren overwhelmed by a large estate, or they want to ensure their kids can enjoy life without being distracted by an eventual inheritance.”
Bowen enjoys helping families with the financial structures that achieve those goals. “And I find I can help them work through the non-financial issues that go along with those decisions.”
It can help to present several scenarios. Recently, when a client inherited about $450,000, he asked Bowen how to invest it. “His only concern was how much risk he should take. But he had an open mortgage of about $400,000 on a new home, renovations to do and a car that needed replacing. I suggested we look at what would happen if he paid off the mortgage – he would be debt-free, with cash to buy a car and complete his renovations.
“I then asked him if he would then be prepared to borrow $450,000 to buy some mutual funds. Of course I knew the answer before he even responded with a resounding ‘No way.’ I put his finances into perspective. This allowed him to understand that investing that money outright was a mistake. But if he insisted on doing so, I pointed out, this way he could write off the interest on that loan – easily more than $20,000 per year. He went ahead and paid off the mortgage. We were far more conservative with his investments. He still thanks me for this guidance every time we meet.”
In his seminars and articles, Bowen presents new ideas and strategies that interest members of his audiences. “People often then ask me for details and I will usually suggest they become a client or take the ideas to their advisor. In most cases they begin to wonder why they have an advisor to whom they take ideas, rather than one that they’re getting new ideas from…”
People can be their own worst enemies when there’s a need for change,” Bowen says. “But delaying a move to get better advice can be costing them tens of thousands of dollars – and over the long term this can make a huge difference.”
His advice: If you need to make a change, just do it. “I often suggest clients write a note to their former advisor, letting the advisor know they’ve moved on and thanking them for their help. Anyone in the industry knows that change is part of the business – there’s no reason for hard feelings.”
Joe Bowen is a registered Mutual Fund Representative with Dundee Private Investors Inc. (“Dundee Private Investors”), a Dundee Wealth Management company. This is not an official publication of Dundee Private Investors and the views (including any recommendations) expressed in this article have not been approved by, and are not necessarily those of, Dundee Private Investors.
Listen to Joe on CFUN AM1410 Sundays 5 to 5:30pm www.joebowen.org 604-603-2336 jbowen@dundeewealth.com
Copyright North Shore Magazine Issue Apr - May 08
