By Tony Wanless
Excerpt, The Province
Sunday, September 30, 2001

Financial counsellor Adrian Mastracci warns "there is no safe market in which to take refuge."

Investors are going to have to polish their bruised investment plans in the wake of the disaster that's gripped the markets, says Vancouver financial advisor Adrian Mastracci.

"Our investment confidence continues to be shaken and placed under severe test by the recent events, not to mention the major global markets heading lower," said Mastraccci, of KCM Wealth Management, a fee-only investment counsel.

"There is no safe market to take refuge."

You could of course try to surf the tsunami that's engulfed the markets by using shorting techniques and other day-trading tricks but most investors can't really pull those off.

Instead, Mastracci offers these steps to revitalize an investment plan:

1. Plan for the worst: Keep your finger off the panic buttons.
   Savvy investors factor the effects of a prolonged bear market into investment expectations and build their plans accordingly.
   
   
2. Ask some questions: The biggest is "what is important about money to you?"
   
   Is it for retirement, preservation, long-term growth, a small business, or an estate to be passed on to heirs?
   
   Then act accordingly.
   
   
3. Polish the game plan.
   
   This is the collection of strategies used to reach chosen goals.
   
   They usually involve much of the financial planning process, such as recognizing how much money is needed, calculating the rate of return required to achieve it, understanding risks, and balancing risk with your investment personality.
   
   
4. Concentrate on asset allocation, which numerous studies have shown accounts for the large majority of investment return.

"Investors who focus on their investment policies make more appropriate investment decisions and are rewarded with returns more in keeping with expectations," he said. "Be prepared because it's going to be choppy."
 

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.