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LIFESTYLE
Light Read – Useful and Relevant

Lifestyle

Take Math Outdoors This Summer

I thought I would share with you some great advice for parents, grandparents, and families that I got from my boys’ school to help keep kids learning this Summer without realizing they are working on schoolwork.

• Count collections of objects found in nature or on a scavenger hunt
• Calculate rates and speed during running, biking, and obstacle races
• Estimate the heights and lengths of natural and manmade objects outside

• Find examples of growing and shrinking patterns in nature
• Code your friend, where one person is the coder, while the other is the robot, and the coder must instruct the robot on how to navigate a path or do a dance around the yard

• Use a park map to plan a route and travel to a new location
• Go on a shape hunt and find shapes in the natural environment
• Examine leaves and other objects to find symmetry
• Estimate and determine elapsed time of road trips and adventures

• Keep a tally of the different types of birds that come to the feeder or other animals that come into the yard
• Track and graph daily temperatures or precipitation over time
• Track the growth of plants in a vegetable garden and examine how they change over time

• Determine a budget and calculate the costs to refresh a garden
• Set up a lemonade stand and determine costs and sales goals

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Amber Mazurkiewicz Marketing Manager The McClelland Financial Group of Assante Capital Management Ltd.

FINANCE
Light Read – Useful and Relevant

Finance

It’s Just About The Math

The last 18 months has provided stock market investors with a very bumpy ride. There was the large drop from January 2022 to the end of September and then a recovery from September to February 2023. The market has been up and down since then.

This volatility is not new to the stock market. It is actually quite common. Investors who have been exposed to the stock market for more than 10 years have seen their share of drawdowns and subsequent recoveries. The stock market has yet to recover fully the paper losses from January 2022 – September 2022.

Most long-term investors believe that their portfolios will recover from short-term losses. If this is a fact, then investors can reliably predict their expected rate of return.

For example, if a client’s portfolio drawdown is 20% (peak to trough drop), then they should expect their recovery rate of return to be more than their drawdown percentage. In this case, a full recovery would require a 25% return. Simple arithmetic. The question is how long?

In most cases where I ask a client if they believe their portfolio will recover, the answer is yes. When I ask how long, the percentage drop typically dictates the length of time for recovery. The larger the drop, the longer the recovery. In a 20% drop (bear market territory), clients can typically tolerate a 3-year recovery period. We know that a 20% drop requires a 25% recovery. Over a 3-year period, the annualized compounded rate of return must be 7.7% to earn 25% cumulative. Over a 2-year period, the annualized return is 11.8%.

Going forward, don’t let drops in the market instill doubt in your portfolio. If you have faith in the market and its ability to recover, then calculating your expected rate of return is easy. It’s just math.

Carlo Cansino FMA, FCSI, CFP® Senior Financial Planner The McClelland Financial Group of Assante Capital Management Ltd.

FINANCE
Light Read – Useful and Relevant

Finance

The Importance of Staying Invested in the Market: A Lesson in Missed Opportunities

Staying invested in the market is a concept that often gets overshadowed by short-term market fluctuations and sensational headlines, but its significance cannot be overstated. Time and again, history has shown us that those who remain committed to their investments tend to reap substantial rewards in the long run.

To illustrate this point, let's consider a hypothetical scenario involving two investors: Alex and Ben. Both decided to invest $10,000 in a diversified portfolio comprising stocks and bonds five years ago. However, Alex grew concerned during a market downturn and opted to pull out their investment after a 10% decline. Ben, on the other hand, decided to stay invested through thick and thin.

Fast forward to five years later, when the market has experienced an impressive recovery. Let's assume that Ben's investment grew by 60% over those five years, resulting in a portfolio value of $16,000. However, due to the premature exit, Alex missed out on the subsequent gains and their investment remained stagnant at $10,000.

The difference between the two portfolios is striking: Ben's decision to stay invested generated a significant return of $6,000, while Alex's missed opportunity amounted to a loss of $6,000.

This example illustrates the power of compounding and the potential consequences of falling victim to short-term market volatility. By staying invested, Ben not only weathered the temporary storm but also took advantage of the market's recovery, allowing their investment to grow and multiply over time.

While market downturns and fluctuations are inevitable, it's crucial to keep a long-term perspective. Timing the market perfectly is incredibly difficult, even for experienced professionals. Instead, focusing on a well-diversified portfolio and staying committed to your investment strategy can help you navigate the ups and downs with confidence.

Remember, successful investing is a marathon, not a sprint. Markets go through cycles, but over the long haul, they have historically trended upward. By staying invested and resisting the urge to make impulsive decisions based on short-term market movements, you position yourself for potential gains and the opportunity to achieve your financial goals.

We encourage you to stay invested in the market and remain disciplined during periods of uncertainty. By doing so, you increase your chances of participating in the market's long-term growth and reaping the rewards that come with it.

Tyler Robertson Associate Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

Apply Today - Deadline August 15th 2023

THINK SMART
Podcast – Listen to Mike and Rob and their latest thoughts and industry insights

Think Smart

The Housing Market and How to Help Your Kids with their First Home

The housing market has cooled less than expected as inventory is limited, and prices remain high. Today we explore how to take advantage of your existing investments, and which accounts to use to assist your children buy their first-time home. As well we discuss best practices for young people trying to save for that new home.

Key points:
(00:54): What’s happening in the housing market?
(02:02): Helping your kids with their first home?
(02:19): Which account should that money come from?
(04:25): What else are we seeing parents help their kids with?
(05:42): Where should your kids be saving?
(07:42): How does the new First Home Savings Account work?
(10:01): How to make the FHSA work to your advantage

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Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

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