Markets are “Nutty!”

What does the last week of market volatility mean to you?  Well as I repeat over and over again to my clients the money in your RRSP’s and other long-term investments are for the long-term.  Even if you are retired currently you will still have many years to be withdrawing from your RRSP’s.  If you are currently drawing money from your RSP’s you should have setup a minimum of 3-5 years of safe, secure investments to ensure the money you are drawing from has little volatility and to avoid drawing from money that is in a loss position.

What if you are still in your savings years?  Well… You should have a TFSA and/or an emergency reserve setup.  This will act as a buffer and should have very little volatility (or ups and downs) in it.  That way if you have an emergency (car or hot water tank exploding) your money will be there… your RSP’s are for retirement… and retirement only (providing you are done school and own your own home)!

So what does all the media hype have to do with you? Actually… nothing.  It doesn’t affect you directly – except by maybe increasing your stress levels.  I’ve been listening to many of the investment guru’s around and they’ve stated a few things.  Global investing is a great place to have your money right now (you are buying on sale) and in the long run (10+ years) markets are very efficient, but in the short-term they are very inefficient.  Markets will go up and down day to day… that is always the way it has been and the way it will always be… right now is no exception.

You’ve all heard me say many times that markets will go up and down, and the people who win are the ones who stay invested and have someone watching over their money.

As always, if you have any questions, please feel free to ask.  I’m always available during the week. (604) 308-6030.