Crafting Confidence Words from Wallaceburg
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C O C T O B E R 2 0 0 7 A N A D A ’ S M A G A Z I N E F O R T H E F I N A N C I A L P R O F E S S I O N A L W ADVISE W W . A D V I S O R . C THIS A THEY MAY BE REBELS, N BUT THEY SHOULD BE YOUR CLIENTS. E W HERE COMES GENERATION X. I T ’ S T I M E T O CRAFTING C O CONFIDENCE M P.15 P L Y P WORDS . 4 FROM 1 WALLACEBURG P.9 KENNY HOTZ actor, writer, producer Rogers Publishing Limited, P.O. Box 720, Station K, Toronto, ON M4P 3J6 • PM 40070230 R10969 AE10_ofc_resend.indd 1 10/04/2007 02:12:06 PM ADVISOR Group/Groupe CONSEILLER consists of Advisor’s Edge, Advisor’s Edge Report, Advisor.ca, Advisor Live, Objectif Conseiller, Conseiller.ca and Conseillers En Direct. vol.10 no.10 O C T O B E R 2 0 0 7 ADVISOR’S EDGE Philip Porado, Editor; Editor, Advisor Group Conferences (416) 764-3802 [email protected] Heidi Staseson, Associate Editor (416) 764-3804 22 X MISSED THE SPOT [email protected] The next generation of investors is cynical, suspicious, and Aniko Nicholson, Art Director (416) 764-3850 cheap. Reality bites. By Philip Porado [email protected] Deanne Gage, Consulting Editor Bert Vandermoer, Contributing Editor Michael Finley, Production Manager 5 41 (416) 764-3928 [email protected] INSIDE EDGE COMPLIANCE OUTLOOK Marie Atkins, Executive Assistant CUT THEM SLACK TAKE IT BACK Make the most of what Genera- How should an advisor unwind DONNA KERRY, PUBLISHER Advisor’s Edge, Advisor’s Edge Report tion X has learned about money. an inappropriate investment? (416) 764-3805 By Philip Porado [email protected] JEAN GOULET, EXECUTIVE PUBLISHER 45 Financial & Advisor Services Group, Quebec 6 TAX BREAK PAUL WILLIAMS, VICE-PRESIDENT FRONT END LOAD BRINGING WORK HOME FINANCIAL PUBLISHING Brand Extension & Online/Development Services News, people and trends from Before clients claim home Canada’s capital markets. offices, make sure they know SUBSCRIPTIONS Cornerstone, 1-866-236-0608 the tax rules. By Gena Katz [email protected] 9 ADVISOR.CA CUSTOMER SERVICE ADVISOR CONFIDENTIAL 46 Cameron Clark SUNSET SAIL? FORGET IT CLOSING BELL Customer Service Administrator How one advisor brokered 50 ZIP IT! (416) 764-3859, [email protected] years with the bank. Spend some time listening— SALES By Heidi Staseson really listening—to your clients. Kathleen Murphy (maternity leave) Senior National Account Manager By Beasley Hawkes (416) 764-3838 15 [email protected] TOOLBOX André Meurer National Account Manager FIGHTING FEAR GO SURFING! (416) 764-3838 A tendency to overreact leads [email protected] Amy Nelson most investors to significantly DON’T MISS our coordinated coverage National Account Manager underperform markets. package, “Advice For the Ages: Bridging the (416) 764-3809 [email protected] By David Sung Generational Divide” on Advisor.ca. Eileen Lasswell National Account Manager (416) 764-4164 25 Featuring an audio interview with noted [email protected] MEET MR. X demographer Dr. David Foot, as well as stories Sophie Bellemare Kenny Hotz talks about money, providing insights on how to work with specific Account Manager, Eastern Canada (514) 843-2133 La La Land, and his generation. age groups, the different life stages clients [email protected] By Heidi Staseson will go through, and the events that shape their world views. 33 ONE FOR THE TEAM You’ll find the package at: Team-based advisors are also www.advisor.ca/generations top producers with clients. By Julie Littlechild www.advisor.ca 1 0 2 0 0 7 AE 3 AE10_003_resend.indd 3 10/04/2007 02:13:55 PM INSIDE EDGE EDITOR CIRCULATION AND RESEARCH P H I L I P P O R A D O [email protected] Keith Fulford, Tricia Benn, Circulation Director Director of Research Cindy Younan, Elizabeth Hall, Circulation Manager Research Manager (maternity leave) EDITORIAL ADVISORY BOARD David Wm. Brown Al G. Brown and Associates David Christianson CUT THEM SLACK Wellington West Total Wealth Management Kathleen Clough PWL Capital Make the most of what Generation X has John Horwood Richardson Partners Financial Limited learned about money. Rebecca Horwood Richardson Partners Financial Limited Cynthia J. Kett Stewart & Kett Financial Advisors Ltd. Jim Rogers IN the summer of 1939, my father was playing near a sewer trench when Rogers Group Financial he spotted a bill lying in a puddle. He grabbed it, ran home to his mother, Kurt Rosentreter Berkshire Securities and proudly announced he’d found a dollar. When his mother examined the Nancy Shewfelt Wellington West Capital Inc. muddy discovery, she told him he’d in fact found a $10 bill—enough to feed Thane Stenner their family of five for a week. Stenner Investment Partners, GMP Private Client Lynne Triffon Growing up in the Depression, my dad had no idea bank notes worth more T.E. Wealth than $1 existed—his find was a Tutankhamen treasure for a family with genuine Terry Zive Gordon & Zive needs. Naturally, he didn’t object when my grandmother tucked the bill away. ROGERS MEDIA INC. Just before my parents got married in 1953, my grandmother produced the Anthony P. Viner, President and CEO bill, handed it to my father and told him, “This is the $10 you found as a little ROGERS PUBLISHING LIMITED boy. Now it’s yours. Keep this as a good luck charm so you’re never down and Brian Segal, President and CEO John Milne, Senior Vice-President, out.” It’s been 54 years and the bill, mud stains and all, remains in his wallet. Business & Professional Publishing Group Marc Blondeau and Michael Fox, I was raised on such stories. My dad showed me the family’s welfare card, Senior Vice-Presidents punched only twice during the depths of the Depression because my grand- Immee Chee Wah and Patrick Renard, Vice-Presidents father was ashamed to take charity. My mother told me about having to help support her family after her father’s death in 1942. University was sadly out , established 1998, is of the question for a woman who whizzed through complicated math. She published by Rogers Publishing Limited, a division of Rogers Media Inc. Advisor’s Edge subscriptions include 24 issues per year, became a bookkeeper, passing to me her care with cash. consisting of 12 issues of Advisor’s Edge in magazine format and When I got to university, the whole “Where are you from?” thing kicked 12 issues of Advisor’s Edge Report in tabloid newspaper format. Rogers Publishing Limited, One Mount Pleasant Rd., Toronto, in. We shared stories and it was then I realized I was part of something larg- Ontario M4Y 2Y5. Montreal office: 1200 avenue McGill College, Bureau 800, Montreal, Quebec H3B 4G7. er—an emerging cohort raised by people who’d faced similar trials. Soon, Subscription price per year: $70 CDN; outside Canada per year: demographers gave us a name, Generation X. $144 US; single copy price: $15 CDN. ISSN 0703-7732. Printed in Canada. While generations are difficult to define, like me, the bulk of these kids had PM 40070230 R10969. Canada Post: Please return undeliverable address blocks to: been brought up by people who’d experienced poverty, and struggled to keep Advisor’s Edge, us in school despite a recession. And we were often jealous of our generational P.O. Box 720, Station K, Toronto, ON M4P 3J6. siblings lucky enough to have younger, hippie-era parents who worried less E-mail: [email protected] We acknowledge the assistance of the Government of Canada, about spending. Generation X, a fitting moniker for people forced to stare through the Publications Assistance Program toward our mailing down a lean economy, though we resent the popular press’s labelling us slack- costs. Contents copyright © 2007 by Rogers Publishing Limited, may not be reprinted without permission. ers, just because our careers got off slow. Advisor’s Edge receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from What they, and perhaps some advisors, don’t understand is that we have a time to time. Advisor’s Edge, its affiliates and assignees may use, secret weapon. By cutting our teeth on tales of poverty, our parents prepared reproduce, publish, re-publish, distribute, store and archive such submissions in whole or in part in any form or medium whatsoever, us for the worst. Many X-ers may never get rich, but we’ve heard enough hor- without compensation of any sort. ror stories to ensure we’ll do what’s necessary to avoid becoming poor. Smart advisors can capitalize on that attitude. AE PORADO www.advisor.ca 1 0 2 0 0 7 AE 5 AE10_005.indd 5 09/20/2007 07:00:02 PM C R O S S C O U N T RY HIT THE ROAD ’TIS the season of the road motivate consumers with show and financial organiza- Vaz-Oxlade’s no-nonsense FRONT tions are pairing with pundits approach to financial man- to spread their mercenary agement, and get them to messages. think about building a plan Last month, Credential “sooner rather than later,” Financial Inc. took its Master according to senior VP Your Finances seminar series Elaine McHarg, chief mar- END to Vancouver, veered Ed- keting officer of Credential. monton way in early Octo- Says McHarg: “Every Ca- ber, and will wrap the tour in nadian can better achieve Ottawa toward the end of the their financial goals with a month.