A recent story in the Financial Post touted Albertans as being Canada’s savviest investors, based on the findings of a Leger Marketing study by BMO Nesbitt Burns. The findings bring to mind research we conducted as part of the Canadian Securities Administrators (CSA) in 2009. In particular, both reports refer to confidence of investors, something we know can be a factor in your financial success. The BMO study says that “Albertans are Canada’s most engaged and knowledgeable investors.” Similarly, the CSA 2009 Investor Index shows that Albertans are above the national average when it comes to saying that they personally research their investments and are familiar with and can explain the risks and benefits of their most recent investment. Self-reported confidence does have some limitations however, as Jon Chevreau, author of the column and popular Wealthy Boomer blog notes. Albertans may be confident and feel that they are knowledgeable about investing but their actual behaviour and investing habits may indicate otherwise. This is supported by the CSA research that finds that being over-confident is one of the predictors of someone becoming an investment fraud victim. With 55 per cent of Albertans in the study saying they are at least somewhat confident about making investment decisions, we’d like to make sure that investor confidence is well-founded. Without an idea of what your investment objectives and goals are, it’s easy to be swayed towards an unsuitable investment that is presented to you. Having a financial plan and making sure you fully understand the risks of an opportunity before you invest are key to being an informed investor. Be sure to follow these steps the next time you are faced with an investment decision: - Check registration: Ask the person offering you an investment if they are registered. While this may feel awkward, you should know about their specific designations, professional qualifications and registration status. You can confirm registration on the ASC website, call toll free (1-877-355-4488) or email (inquiries@asc.ca) the ASC to find out if an individual is registered and able to sell investments to you.
- Get third party advice: Consult with a person who is not participating in the investment deal, such as a lawyer, banker, accountant, financial adviser or someone else with business knowledge, before deciding to invest. Don’t feel pressured to hand over your money until you’ve had some time to carefully consider the investment.
Remember, confidence is best when based on solid information and knowledge. Rather than just believing you’ve got your investments under control, use these steps to make sure you actually do. Comment on this blog... | About this Blog We’ve created this blog to present you with answers to some of the more popular questions we receive from investors. We'll have different subject matter experts blogging about what they know best and we'll update it as new blogs arise. We hope you'll find it interesting and helpful. Today's Blogger Hi, I’m Lorinda Brinton, senior advisor for Investor Education at the ASC. During the last six years I’ve been working to get you the information you need when making your investing decisions. We have many resources throughout the site to help you be more informed and better protect your money. Check them out – I’m sure you’ll discover some tools or information that will be useful. Here are some links I think you’ll find helpful:
Ask your question If you have a question you would like to see answered on this page, email them to questions@asc.ca. We may not use every question we receive but will concentrate on areas from which we receive the most inquiries. If you have a question related directly to your own situation, please contact ASC inquiries using our toll free number (1-877-355-4488) or email inquiries@asc.ca. If you have a complaint, email complaints@asc.ca or call 403-355-3888.
We encourage you to make use of our ASC resources to reduce your vulnerability to fraud, and to help you to become a better informed investor with some knowledge of how the markets work. Read our Helpful Brochures and Reading Material.
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