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Mind your money

Key steps to understanding and figuring out your finances

by LANA SANICHAR

When asked what my goal is in writing this column, the response is two-fold: to create awareness surrounding money, and to get people thinking about ways to keep more of their hard-earned money in their pockets to enjoy either now or in retirement.

With that in mind, I decided to reach out to Ken Kivenko, president of Kenmar Associates, an Ontario-based privately funded organization focused on investment fund investor education, for his thoughts on how to navigate turbulent times in the markets. Here are his tips:

Improve your financial literacy. You will be better able to make the decisions that will help you meet your lifetime needs for financial self-sufficiency.

Develop a personal financial plan. Having a plan is crucial to your being able to achieve financial self-sufficiency. Sit down and determine what’s important to you and your family—what your goals are and how you are going to achieve them.

Build up an emergency fund. The rule of thumb is to set aside enough to cover at least four months’ worth of your living expenses.

Do your homework. If you engage an investment adviser, ensure they are registered and a good fit for your needs. Ensure you are getting value for the fees and commissions you pay.

Use your workplace plan. If your employer offers some sort of savings plan, consider making use of it. It’s money in the bank for you.

Use government programs. Make use of tax-free savings accounts, registered education savings plans and more.

Don’t chase past investment results. Returns are like a weather vane turning in the wind. Last year’s winners may not repeat their performance.

Know your tolerance.Whether it’s for risk or financial capacity to withstand losses, think twice before borrowing to invest.

Monitor investment costs. Over time, even 1% can devour a large amount of your potential returns. Keep product and transaction costs in check.

Pay attention. Stay on top of what is happening with your banking/investment accounts. Read your account statements. They will help you keep track of how well you are progressing toward your goals and objectives.

Be skeptical. If something looks too good to be true, run.

Finally, Kivenko also advises that “no one cares more about your money than you do. Control your own financial destiny, or someone else will.” I concur.