Trusted Regina Blog | August 2023

Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Chris Worby shares information about the rules of investing.

Rules of Investing - Gotta Know The Rules To Win The Game!

At Worby Wealth Management We are committed to providing a high standard of Investment advice to individuals, families and business owners. Understanding and following certain rules can be helpful when it comes to investing. While investing is not a guaranteed game, adhering to some principles can increase your chances of making informed decisions and achieving your financial goals.

Here are 10 key rules of investing:

Set clear investment goals: Before you start investing, it’s important to define your investment objectives. Are you investing for retirement, a down payment on a house, or a specific financial milestone? Having clear goals will help shape your investment strategy.
Diversify your portfolio: Diversification involves spreading your investments across different asset classes, sectors, and geographic regions. By diversifying, you can reduce the impact of any single investment’s performance on your overall portfolio. This helps manage risk and potentially enhance returns.
Understand your risk tolerance: Assessing your risk tolerance is crucial. Some investments carry higher risks but also offer the potential for higher returns, while others are more conservative. Understanding how much risk you’re comfortable with will guide your asset allocation decisions.
Do your research: Thorough research is essential before making any investment. Understand the company or investment you’re considering, analyze its financials, evaluate its competitive position, and consider any external factors that could impact its performance. Knowledge is power in investing.
Take a long-term perspective: Investing is generally a long-term endeavour. While short-term market fluctuations can be unsettling, focusing on the long-term trends and staying invested over time may help smooth out volatility and increase the likelihood of positive returns.
Avoid emotional decision-making: Emotional decision-making based on short-term market fluctuations can lead to poor investment choices. Try to remain objective and avoid making impulsive decisions driven by fear or greed. Stick to your investment strategy and review it periodically based on your long-term goals.
Regularly review and rebalance your portfolio: Periodically review your portfolio to ensure it remains aligned with your goals and risk tolerance. Market movements may cause your asset allocation to drift from your target, and rebalancing helps maintain the desired risk-reward profile.
Consider the impact of fees: Fees and expenses can erode your investment returns over time. Pay attention to the costs associated with the investments you choose, including management fees, expense ratios, and transaction fees. Low-cost investment options may be more favourable in the long run.
Stay informed and adapt: Keep yourself updated on market trends, economic indicators, and relevant news that could impact your investments. Flexibility and the ability to adapt your strategy as circumstances change are essential in the dynamic world of investing.
Seek professional advice if needed: Investing can be complex, and seeking advice from a qualified financial advisor can provide valuable insights and guidance tailored to your specific situation. An advisor can help you navigate the intricacies of investing and make well-informed decisions.

Remember, investing involves risk, and there are no foolproof rules or guarantees of success. It’s important to consider your personal circumstances and consult with professionals before making investment decisions. Contact Worby Wealth Management Regina so we can review your investment needs today.

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TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!

The comments herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice in the context of your particular circumstances. This Blog was written, designed and produced by Chris Worby for the benefit of Chris Worby, a Financial Advisor at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe are reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell securities. Mutual Funds approved exempt market products and/or exchange-traded funds are offered through Investia Financial Services Inc.

ESG Investing - What it is and is it a good thing to do?

What is ESG?

ESG investing, also known as sustainable investing or socially responsible investing (SRI), is an investment approach that takes into account environmental, social, and governance factors when making investment decisions. It goes beyond traditional financial analysis and considers the impact of a company’s operations on various stakeholders, including employees, customers, communities, and the planet.

The “ESG” acronym represents the following:

Environmental: This refers to a company’s impact on the environment, such as its carbon footprint, resource usage, pollution levels, and commitment to renewable energy.
Social: This category focuses on a company’s relationships with its employees, suppliers, customers, and communities. It considers factors such as labour practices, human rights, product safety, diversity and inclusion, and community involvement.
Governance: Governance relates to a company’s leadership, structure, and policies. It assesses aspects such as board independence, executive compensation, shareholder rights, transparency, and ethics.

ESG investing aims to generate financial returns while also considering the broader impact of investments on society and the environment. It allows investors to align their financial goals with their values and promote positive change.

Whether ESG investing is a good thing to do is subjective and depends on individual perspectives and goals. Here are some points to consider:

Alignment with values: ESG investing provides an opportunity for individuals and institutions to invest in companies that align with their values and support causes they care about, such as sustainability, social justice, or clean energy.
Long-term risk management: Companies with strong ESG performance may be better equipped to manage risks and capitalize on emerging opportunities. Assessing ESG factors can provide insights into a company’s resilience, reputation, and potential for long-term success.
Performance considerations: There is a growing body of evidence suggesting that companies with robust ESG practices can deliver competitive financial performance over the long term. However, it’s important to note that financial returns can vary, and not all ESG investments will outperform traditional investments in every period.
Impact on society and the environment: ESG investing can encourage companies to adopt more sustainable practices, improve social outcomes, and reduce negative environmental impacts. By directing capital towards responsible companies, investors can potentially contribute to positive change.
Measurement and transparency challenges: ESG investing faces challenges related to standardization, measurement methodologies, and disclosure practices. It can be difficult to compare and evaluate ESG metrics across companies, which may hinder the effectiveness of investment decisions.

Ultimately, the decision to engage in ESG investing should consider personal values, financial goals, and risk tolerance. Working with a Trusted Regina Wealth Management Advisor who understands sustainable investing can help navigate the complexities of ESG investing and align investment strategies with your individual preferences. Contact Worby Wealth Management Regina so we can review your investment needs today.