Adrian Mastracci, president of fee-only KCM Wealth Management, says "Make sure you know where you are heading. Stick to your knitting. If the game plan is appropriate, a periodic tweak will suffice."

For Immediate Release

Vancouver, B.C. (November 4, 2002): The third year of the bear market has altered many a plan.

Adrian Mastracci, investment counsel with Vancouver’s fee-only KCM Wealth Management, comments, “Some plans may be off course. Some have lost considerable power. So, begin by asking what is important about your financial security to you?”

Mastracci adds, “Your advisors should be asking the same question too.”

“A regular examination of the personal finances determines if the game plan is still running smoothly,” indicates Mastracci, “Today’s money management review has extra meaning in view of the lingering market uncertainty.”

“Some investors focus on preservation of the nest egg,” explains Mastracci, “Some emphasize portfolio growth. Others are more concerned with the income stream to support a comfortable retirement.”

“Make sure you know where you are heading,” says Mastracci, “Stick to your knitting. If the game plan is appropriate, a periodic tweak will suffice.”

These ideas may assist:

The big picture
Determine what you want your retirement nest egg to do for you. The portfolio is influenced by events like available time to retirement, present age, appetite for risk and investment personality.

If no game plan is in place, or it is outdated, then make the game plan a priority. Perhaps, a well deserved gift to yourself is in order.

A second opinion may be fitting for a plan that is in place. Professional counsel may assist. If what you are doing now is sputtering, then it is time to consider alternatives.

Focus on factors you can control
Asset allocation decisions have the greatest impact on portfolio returns. Clearly, this is the focus for every investment portfolio. One that you can easily control. So is the amount of risk you take. Along with staying invested within your investor profile, the level of diversification and investment horizon.

Crunching the numbers
Revisit the income level you need to support your desired retirement lifestyle. This leads to the question of how much capital you will need when you get there. Updating the personal rate of return you will need on your investments to reach your milestone also helps.

Yesterday's winners
Too many investors are preoccupied with accumulating a portfolio of yesterday's winners. It is time to stop chasing the best performing stocks and funds. A portfolio with emphasis on consistent returns is better than one with emphasis on performance.

Loss strategy to behold
Incurring losses is not the most detrimental event for portfolios. Rather, it is keeping the losses far too long. So, be an astute portfolio manager. Have the nerve to admit to being wrong.

Some investments will result in losses. Being wrong does not make a poor portfolio manager. Staying too long with the loss is the problem.

Adopt a loss strategy to contain the portfolio damage when the picks go south. A simple approach, such as selling at 30% below purchase price, will help.

Understand investment costs
Review the investment portfolio and understand the costs of each investment. For example, mutual fund costs may include a management expense ratio (MER) deducted directly from the fund, front loads, and deferred sales charges.

New interest deductibility proposals
The tax collector recently outlined 18 proposals that change the deductibility of interest on borrowed funds. Learn about the ones that apply. For convenience, my recent newsletter covering the 18 proposals.

Choose the saver and payer spouse
Many families have one spouse who earns the higher income and often has more financial assets. If a goal is to equalize retirement incomes, the higher income spouse pays for the family expenditures. The lower income spouse can do the saving and accumulate assets.

Donating eligible securities to a charity
Those who will be selling securities and making a charitable contribution may consider giving the eligible securities directly to the registered charity. The incentive is that the capital gains inclusion rate on the donated securities is reduced from 50% to 25%.

The estate plan
At the very least, review your will provisions. Start with the beneficiaries and the estate allocations. Then determine if the executors, guardians and trustees still want the thankless duties and responsibilities. Those with a more involved estate may want to review the need for estate freezing. Perhaps, passing on part of the value to family members.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.