June 2011
We love Toronto in June...how about you?



Great things about the month of June in Toronto; You don't have to rake leaves or shovel snow. 

It's warm enough so you don't need a coat, but it's not so hot that you need air-conditioning.

The summer solstice occurs June 21st.  The summer solstice is the longest day of the year and the shortest night. The best time of the year to partake in all the city has to offer.  Of course, we have festivals, races & tournaments all happenning along the waterfront and St. Lawrence Market is always a great way to spend a Saturday morning.
We hope you enjoy this newsletter and take a moment to enjoy the long awaited days of Summer. 
Thank you,
Peter                Richard                   Claudio

Super rich are no happier than the rest of us

An article by Angela Self- The Globe and Mail 


I daydream about what my life would be like with more money. In some cases, I really do believe that more money equals more happiness, but only to a certain point.

Brad Klontz, a financial psychologist and author of Mind over Money, says there is no correlation between money and happiness once your income reaches $75,000 a year. He adds that many of us set arbitrary "more money" or "more stuff" targets, believing that these magical numbers and material items will bring us meaning, peace, happiness, security or whatever else we feel is missing in our lives. The problem is that when the target is met, the corresponding payoff never shows up. Yet, we still want for more - and millionaires are no different.


In a recent survey of more than 1,000 American millionaires, more than 42 per cent said they did not feel wealthy. These respondents had at least $1-million (U.S.) in investable assets, excluding any real estate or retirement accounts. The same respondents said that to feel wealthy they would need an investable asset level of $7.5-million. I know many people who would feel wealthy with a million dollars in investable assets. It's all relative.

In the April issue of The Atlantic, we're given a preview of a new study by Boston College on the super rich - 120 people with a net worth $25-million plus. These individuals were asked to reply in writing to questions about love, work and family. You can read the full article here.

According to the article, "the respondents turn out to be a generally dissatisfied lot, whose money has contributed to deep anxieties involving love, work and family. Indeed, they are frequently dissatisfied even with their sizable fortunes. Most of them still do not consider themselves financially secure; for that, they say, they would require on average one-quarter more wealth than they currently possess."

More than $25-million to feel secure? Really? It's hard to believe. Again, ultimately how much money we need, or want, is relative to our expectations, our situations and our goals.

The ideal is to come to happy place with what we have while maintaining a healthy drive for what we want. Dr. Klontz says to get to this place, we need a clear idea of why we want to build wealth in the first place. If you believe that having more money equals more happiness, then be prepared to explain why.


Ask yourself why you want more money and then continue asking questions until you have the specifics. If you say you want more money so you can quit your job and travel, then imagine what you'll do in six months, one year, etc. Then what? Keep digging until you've mapped out what more money really means. Get to the heart of why you want more and then work on attaching a realistic dollar amount to that vision. Working backward from the more money, more happiness theory and asking "why" usually debunks the myth that more is always better, Dr. Klontz says.


Scared Silly

By Gail Vaz-Oxlade | Online only on MoneySense Mag 


Have you noticed the rise of fear-based advertising? Marketers have recently switched from enticing you to buy to scaring you into spending your money. Money you could be saving.

The most ludicrous example of this is the automatic soap dispenser. The first time I watched this ad with my daughter, we looked at each other and burst out laughing. It was a scare-ad gone bonkers! The premise is you won't have to touch the soap dispenser where all the deadly germs reside, you can simply slide your hands under the dispenser and you'll get a serving of soap. Hey, aren't you about to wash your hands anyway?Have you noticed the rise of fear-based advertising? Marketers have recently switched from enticing you to buy to scaring you into spending your money. Money you could be saving.

Left to marketers, you'd spend all the money you should be saving warding off the heebie-jeebies. There's the toothpaste that's going to protect your enamel from eroding. There are the germs on your counter-top that will make your whole family sick. And there are the criminals waiting to steal your stuff, your car, your financial identity.

The thing that should really be scaring you is how easily you're being manipulated into spending money you should be setting aside for the future. If you allow the fear-mongers to 'motivate' you to buy something you really don't need, you're not only leaving yourself exposed emotionally (why would you give them that kind of power over you?), but also financially.

While most of us are loath to admit the fear-factor works - it makes us feel like wussies - fear ranks as one of the strongest motivators and advertisers are blatantly using it to scare the britches off us.

Who hasn't watched a home security ad and thought, "Gee, $24.99 a month is nothing for the peace of mind I'll get from having the 'free' system."  You may even have had the same thought watching the ID-theft ads.

You would think that in this day and age of rabid cynicism few people would fall for the fear-inducing marketing ploys, but fall people do. Before you follow your knee-jerk response to protect yourself and your family by coughing up some hard-earned dough to ward off the bogeyman, do some research. Don't buy simply because a marketer has pushed the right button.




A client asked.....
"How do I check my credit rating? What information do I need to give them and is it safe to do online?"

There are two rating agencies in Canada that store your data and assess your credit rating based on your employment history, your bank accounts and any issues you've had with collections, credit cards and debt:  Equifax and Trans Union. 

Checking your rating and getting your credit score as well as a full report can be done online for a fee or for free via snail mail.

They will request personal information to verify your identity.  Identification pieces requested will likely include something with your name, address, date of birth, a likeness of you (picture) and a signature:  a driver's license or citizenship card, a passport, and/or a credit card.  A prudent way to do this is through Canada Post.  Even though it's probably safe to do online, because all the information they require is the same a criminal would use for identity theft; the point being that criminals would  likely target their efforts on these two particular sites to get it. 


Whichever way you choose to receive your report, get it from both agencies as they are separate entities.  This will give you an opportunity to correct any erroneous information and get a fulsome picture of how any potential lender would see you.


Issue: 6
Financial Markets
In This Issue
Super rich are no happier than the rest of us.
Scared Silly
A client asked........
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Peter Bailey
Worldsource Financial Management
272 Lawrence Avenue West, Suite 203
Toronto, Ontario M5M 4M1