Managed Money Reporter Newsletter — Issue 205, April 2004

Editors: Carl Spiess & Allan McGlade

Featured Articles

Spring Edition of Investment Portfolio Quarterly

We are pleased to provide our firm's recent Investment Portfolio Quarterly update on the markets and investing.

Although the first quarter of 2004 got off to a strong start, with leading indices reaching highs that had not been seen since early 2002, the month of March brought our first notable correction of the current bull market. Uncertainty regarding the U.S. job market and interest rates, as well as growing concerns about terrorism and the situation in Iraq, led to renewed investor jitters.

While no one can know for certain what the next few months will hold, those active traders wishing to reduce the potential for volatility may want to increase cash holdings, reduce term to maturity (duration) of fixed income holdings and focus on high-quality equities in their stock portfolios.

For most clients, maintaining a long-term focus and pre-determined asset allocation goal will continue to be critical. This edition of Investment Portfolio Quarterly is designed to help you step back from the current noise and focus on those strategies that will help you meet your long-term goals. Special articles include:

  • ScotiaMcLeod's Mutual Fund Research Group reminds us of the importance of ignoring short-term performance in making long-term investment decisions. The true path to success is investing in the right mix of managers, diversified by style, geography and level of risk, in order to meet our long-term investment goals.
  • The Managed Asset Group provides a comprehensive article from Northern Trust Global Advisors on managing currency risk – a timely topic in the wake of the rising Canadian dollar.
  • The Financial and Estate Planning Group encourages us to take the spring season as an opportunity to review how things are progressing with our plans for financial peace of mind and to take advantage of the many tax, retirement, estate and investment solutions that are available to us.

We hope you enjoy this edition of Investment Portfolio Quarterly, written to keep you up to date on the markets and to provide you with solid strategies to help you achieve your financial goals. Your investment team can provide you with additional information on any of the material and strategies outlined in this publication and formulate personalized recommendations to your situation and goals.

The Importance of Planning...

From Lewis Carroll. This one relates to planning, vision and life direction.

When Alice met the Cheshire Cat, she asked timidly, "Would you tell me please which way I ought to go from here?" 

"That depends a great deal on where you want to get to," replied the Cat. 

"I don't much care where," said Alice. 

"Then it doesn't matter which way you go," said the Cat.

Without goals or objectives for your finances, you certainly won't get to where you want to go.  We would be pleased to help prepare and evaluate a financial plan for you. Contact us for more information.

Tax Rumour (Rhymes with Humour) of the Month

A last minute reminder that Friday April 30th, 2004 is tax deadline time.  By now you will have heard that CCRA has been renamed CRA.  Why they didn't go back to the good old Revenue Canada we don't know.

The Fraser Institute reports that the average Canadian family last year earned $58,782 and paid taxes equaling $27,640 -- 47% of their income.  This assessment is from the conservative think-tank's latest study of the family tax burden.  Taxes last year swallowed a much bigger share of family income than the 23% spent on the basic necessities of shelter, food and clothing.

As a result, apparently CRA is considering a new simplified tax form.  For a preview, click here...  Let us know what you think, or contact us for some serious tax saving ideas like RRSPs, LSIFs or Flow Through shares that can help with next year's tax bills.

Staff Profile - Andrew McGoey

Andrew McGoey joined our team last January, and has quickly assumed a number of important roles.  After working at ScotiaMcLeod in another department providing support internally, Andrew chose to work with us, where he could serve our clients directly.

Andrew's responsibilities include; directly answering client questions, client account administration, RESP account setup, Labour Fund specialist and overall resource for our clients.

Andrew graduated from Lakehead University, with a Major-BA in geography, but quickly took to matters financial.  In addition to the CSC and RR, Andrew recently completed the difficult LLQP course for Life Insurance License. Proving that there is an never-ending requirement for education in our industry, he is currently a Candidate for the Professional Financial Planning course, and is training on our advanced Naviplan financial planning software.

In his spare time Andrew enjoys classical piano (since age 6), refereeing minor hockey, golf, jogging and the outdoors.  He is recently married and will become a first time homeowner this summer.  We are pleased to have Andrew on our team and available to help assist you, along with the rest of our team.

Mutual Fund Reporter Recommended Website of the Month 

Want to know how your tax refund is coming along?  Check out the new "my account" service on the CRA site:


Contact Us

T.  416.863.RRSP (7777)
F.  416.863.7479

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