THE STOCK MARKET.

In a blog written back in May 2010 I spoke about my frustration with the financial industry and the fact there didn’t seem to be a way for creative folk (ie: people like ME who can only seem to speak in metaphors... with hand gestures.. and possibly a song) to connect with the seemingly unintelligible world of INVESTING. Sorry, I’m generalizing, but *honestly* if I asked you to define:

IPOs * ETFs * EQUITIES * OPTIONS * & * MERs

...I’m sure you (insert me projecting my instincts onto everyone who reads this) would resort to hand gestures as well! No? Yes? Back to my date...

#1 on my list of requests was to have STEVE introduce me to my bank’s

PRACTICE INVESTMENT SITE.

Here I would have an imaginary $100,000 to play with, and could familiarize myself with how the stock market works - minus the risk. More importantly it would be an excellent way to gage my comfort level around:
losing
gaining
patience
and the root of it all...
fear.

Steve told me that the secret to the stock market - really - was to have a crystal ball at the ready (!!!!!) If you don’t have one of those, well, practicing to see how the market really works is probably your next best bet.

#2. I wanted answers, REAL ANSWERS, or COLOURFUL DEFINITIONS to the thousands of acronyms that litter each page or graph. With every answer from Steve I would counter with a statement that sounded like,

“So....this one is like putting all of your eggs in one basket and, this one is like buying one egg at a time from individual chickens on different farms? Got it.”

Please don’t ask me what he was referring to...I have since forgotten and can’t read my notes...

#3. After my 25 minute tutorial - turned into 1hr 15min - I discovered that the STOCK MARKET could be summed up as a very expensive popularity contest. If the market (the people) don’t like what they see in the press about the CEO of a company, POOF! The people sell their stocks (insert: we don’t want to play with you anymore) and the company can financially disappear. Add a positive mention from Ellen or Oprah, POOF! The stock value goes up and that CEO buys a Porsche.

Similarly, if the demand for one resource goes up (Mr. Wheat) then wheat’s friends (farming related products) will all have to act accordingly and meet the demand. If you’re savvy and can see the circle of friends that support Mr.Wheat (check his FaceBook wall) you can make smart choices and “friend” them all into your investment page before the the cost is too dear.

#4. A question from STEVE:

“How did you become interested in the stock market? I
don’t see many opera singers hanging out down at Bay and Front St.”

My answer was that since it would seem that money - quite literally - makes the world go around, isn’t it in my best interest to figure out what that ACTUALLY means? When you visit a foreign country don’t you, at the very least, want to know how to say,

“Where’s the bathroom and how much are these beautiful shoes?”

I want the language of money to be right up there with my knowledge of English and French-ish. Since I already have a good grasp of how to fill up my shoe closet in both of Canada’s official languages, (not to mention being able sing about Magic Flutes in German, or a locket with my lover’s face on it in Italian) I’m thinking that the *money speak* could prove to be equally practical.

Over the next few months I will PRACTICE with my PRETEND $100,000, let you know how I do, and see if the site can really convert an “oh so right brained artist” into a money making GENIUS!!!!!

Wish me luck!

practice investment site: Check out your internet banking page for something similar to RBC’s practice site & free investment consultations.

*as always, a reminder that my money musings are for entertainment purposes only.
Please see a licensed financial professional when making real decisions about YOUR money.

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I - AM - A - GARDENER.
Yes, I am.

...ok, I don’t always know exactly what I’m doing but, things seem to be growing in my backyard because of ME. (Insert prairie girl grin.) I am re-planting one year’s harvest of one thing, to help make it stronger, and more bountiful the next year. I am ripping out what I don’t like (sans apology) and replacing it with what makes me happy. I AM IN CHARGE. I am in CONTROL .... ummm, of everything but the plants. Did I forget to mention that plants don’t grow when you want them to; they grow only when the conditions are right. They all have their own personalities, you just have to choose which ones you can handle, and care for in any given season.

Yes, you would be correct if you started to sense a metaphor creeping up... HULLO? Gardening? Growing? I didn’t start the blog to chat about your green thumb...

OOO! An accidental metaphor! YESSSS-aaaaahhh!
(I love it when that happens.)
Your green thumb! Get it? GREENBACKS, MONEY, MOOLA!
(pat myself on the back)

Growing a bountiful harvest in your financial garden is no easy task. I started off believing in one financial path only to discover that there was more than one way to create abundance. Some products that I was hell bent on not considering, I am now thinking might be something to add to the pot.

The two growth options I’m talking about today are
(solely to stir up a conversation and get people thinking about their saving options)
RRSPs and TFSAs.
(BO-RING, but keep reading anyway...)

When I first attempted to grow my money, RRSPs were basically the only suggestion made to me .

• Put money in
• Get a tax deduction against my income that year
• Watch it GROW
• FLUCTUATE
• or SINK into OBLIVION
• and GROW AGAIN
• RETIRE on what is left AFTER taxes
• EARLY WITHDRAWALS are taxed heavily so, it’s best to LEAVE IT ALONE
• ONE TIME USE for first time home buyers to be PAID BACK over 15years.

The success of my RRSPs was based on how well the banks did,
not necessarily how much I put away.

I didn’t get that it was a tool for banks to play the market (on my behalf) and if the market crashed so would I. In fact, nobody said anything about CRASHING, just growth. Hmph! To the people who only planted an RRSP crop over 30 years, and were about to retire in 2009, the fall of the 2008 market was the equivalent to a hail storm five minutes before starting up the tractor (and a big wake up call for me as I narrowly missed a huge loss myself).

I have no regrets about starting my savings with RRSPs.They were a great tool to use for a first time property investment. It was my best/only option at the time and it enabled me to get ahead on establishing an actual net worth.

WHAT WOULD I DO NOW?

If I was the same 25 year old singer today, wanting to start saving for retirement (and/or mile stone investments like a home/family/continued education) I would probably use the TFSA instead. The Tax Free Savings Account (which has only been in existence since 2009) is a place where money can be:

• STORED and SHELTERED from being taxed (up to $5000 yr.)
• WITHDRAWN for whatever you have been saving for, sans taxes on that income
• Unlike the RRSP, if you take it out, you DON’T have to pay it back
• CARRY FORWARD contributing room indefinitely
• CHOOSE to have it INVESTED like RRSPs (no tax on the interest) & will fluctuate with the market
• or KEEP it as a SECURE account ie: STOCK MARKET CRASH FREE (sacrifice investment growth for security)
• There was even an article that they might be raising the contribution limit to $10,000.00 by 2014
• Biggest drawback: It cannot be used as a yearly deductible against your income....b’bye tax return

“When I retire, I don’t want all of my savings to be taxed when I start to live on it as income. I may not get a tax break today, but today I’m still working, healthy, and able. I would rather pay now when I can handle it, instead of later.”
Something for artists (whose income fluctuates as much as the markets) to consider.

Again, I hi-light these two options today SOLELY to stir up a conversation.

There are many more options to consider (it’s no secret that I am a big fan of property).
My hope is that, at the very least, this will spur you on to
start digging in your garden and GET SOMETHING, ANYTHING GROWING
for a happy harvest in the future.

Thanks for reading!

*As always, a reminder that I am not a financial advisor. I write for entertainment and inspiration only. Please see a licensed financial specialist when making final decisions with your money.

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“the PERSONAL FINANCE section is for your PERSONAL FINANCES,
and BUSINESS is for BUSINESS needs....”

*sigh* I must have looked really clueless because apparently he didn’t think I could read english (but I digress). I thanked him (not entirely without sarcasm) and told him I could take it from here.

“Mm hmmm, yeah, thanks, buh-bye-eeee.”

My mission that day was to start a new chapter in my “tales of a rebel bird building an empire one branch at a time” best seller. I would become an expert on stocks, bonds, and investing for the small investor, and this would be the day that I found THE book that would lead me to my goal.

Unfortunately, it didn’t take very long to realize, that even though I had clearly established my proficiency at reading the store’s signage, that was about as far as it went. I flipped through book after book, page after page, without picking up a single clue as to where to start. One author went as far as to say that,

“I admit, my first three tries at writing about being a successful investor didn’t really hit the mark...”

Great. So even the money dude hasn’t figured it out. I left the store exactly as I entered; bookless and clueless.

Where is MY money book? Where is THE source for the creative mind?
I won’t speak for all artists but I need a story
to make all of that money talk stick.

It’s kind of like sight singing: Some people are very scholastic and/or mathematical. Some have perfect pitch: they just know what a D is. Well, I’m right smack dab in the middle (thank you very much): If you asked me to sing a D, I’d probably be close. If you asked me to sing the first note of Carmen’s ‘Habanera,’ I’d be dead on. Yup. I’m one of those singers who needs a story, or a metaphor to cling to so that my muscular, and emotional memory can kick in. It’s the same thing with numbers; there had better be a really good plot to explaining DIVIDENDS and ETFs or I’m outta’ here.

Well, today I think I may have found a great starting point for my journey through Financial Literacy 101. Canadian blogger, Laura Thomas is dedicated to making financial literacy (not to be confused with financial advice) fun and tangible. Her story telling abilities keep you interested, and you come out on the other end of the blog educated, and entertained. Bon! Many bravos, sign me up!

If you’re like me and want the money from every note you sing to go further than your rent and groceries, I think this writer might be a good starting point. We learn about languages all the time. Adding the language of Money to French, German and Italian seems a logical step to developing better self employed artists. It certainly can’t hurt. : )

Happy Learning!

Suggested Blogger: www.moneyandmeforcanadians.blogspot.com

*note: As always, a reminder that I am not a licensed financial advisor and my recommendations are simply to entertain and generate creative thought. Please see a trusted financial advisor when making real life decisions about your money.

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