The Value of the Pause

We were out to dinner with friends on New Years Day, they used to be our neighbours but recently got a newer more suitable home about 10 blocks away.  When you have three children having a house that is laid out correctly is essential.

Over the two years, they were our neighbours we became good friends, we were the safe haven for their boys after school and on one occasion when they were both working and she needed to go to a family funeral the three children lived at our house for a long weekend.  

I freely admit that I now understand why my stepdad was so grumpy when he was 70 and I was about 15,  teenagers have that effect. But I digress.

What was important about this dinner was that the youngest had purchased Christmas presents for us.  His school had a sale day where everyone donated items for the sale and the children purchased the items to give as gifts.  He gave my wife a picture frame and for me, he found a book, “Thank you for being Late”, by Thomas Friedman. His comment when his Mother asked him why that book was. “Colin seemed always be reading those kinds of books.”  Wow! I was blown away I didn’t realize he was paying attention.

And the book is a great book.  Friedman is very insightful and the theme of the title is that when someone isn’t on time for a meeting for whatever reason the time isn’t wasted, it’s the pause. That moment to reflect, to just sit and think that can be so valuable.

You can’t have a beautiful piece of music without space between the notes. You can’t read an article without the space between the words.  As Friedman points out in his book patience is not one of the virtues of the current generation but patience has so many side benefits. Not being in a hurry means that the little things are not missed.

One of my pastimes is to go to my favourite coffee house, order an Americano and sit down and attempt to complete the New York Times crossword puzzle before the Americano is gone. I seldom succeed but that time is invaluable, it allows me to not think about the “to do” list, just sit and enjoy the day. Often this is when the ideas will come to me, they may lead to opportunities or to articles. Invariably I will meet one of my clients there and we will have a brief chat, that often leads to an appointment to discuss an issue that they have been thinking about.  If I didn’t take the time to go do that crossword it might be weeks before I saw them.

The pause, just like the space is so important and often ignored, if you want to make your music more in tune with you, add the pause. Do it today you will not regret it.

Making better use of Leisure time.

Colin J. Campbell

 Much of our leisure time is wasted, we spend far too much time in front of the television or playing video games.  If used more wisely it could result in learning a new skill, starting another career or planning  a business venture.  For many  the time between dinner and midnight  is the best time to spend doing these kinds of activities. 

Here are some ideas that might provide a guideline. Keep in mind that it is not necessary to keep this kind of pace going day in and day out, there has to be variety and there has to be time to recharge, use these ideas wisely.

1.       Learn a new skill  -  Start a course, go on line and take a college course, there are hundreds of sites that will provide courses on thousands of subjects many at no cost.  You may already have a skill that you are not using perhaps you should consider beginning to implement that skill on a part time basis in the evening.

2.       Read more -  It doesn’t matter  what you read just read more.  You may want to read books that will enhance your personal skills, or just read a novel.  Start asking others what they are reading, it is often a good source of new ideas.  Interestingly researchers indicate that reading more can reduce the effects of Alzheimer disease.   An hour spent reading every day will have exponential  benefits over the long term it expands the mind and enhances creativity. 

3.       Volunteer  – Use some of your time to  make a contribution to your community, what you give will come back tenfold and at the same time you will be developing skills that can come in handy later in your personal life.  Volunteering provides the opportunity to take a leadership role in situations that will not impact your career or your business directly but could develop skills that will assist with business development. 

4.       Develop your network -  There is probably nothing you can do that will benefit you and your career more than using the tools available to add to your network. That list of individuals that you have commonality with.  It may not be a list that you will use to market a skill or product but rather a network that gives you access to others who can assist you with your objectives.  There is nothing more valuable to you than the contacts you make and keep.

5.       Meditate – Nothing you can do right this minute will have a better effect than learning how to meditate, even if it is for a few minutes.  The major benefit is that it clears your mind, which in turn allows for new fresh ideas to develop.  It will relax you, free your mind of drudgery and refresh your thinking.  

6.       The change in you begins today – Will you take the challenge and begin to use your free time to expand your mind and your skills and begin to prepare for the future?  It will not come easy it just takes discipline and commitment, you won’t regret it.

If technology continues to follow the course it is on it is very possible that the end of work as we know it is not that far off. Technology is going to force radical changes in all facets of our lives.  We may see the end of income tax in the next 20 years as government grapples with the problem of keeping  revenues up while fewer and fewer of us are earning taxable income.  The expansion of our consumption tax may be the answer.

 We could also see guaranteed incomes, where everyone will receive a fixed amount every year.  Which may sound socialistic however if machines are doing the work and creating revenue and tax dollars for government what better way to provide for a countries population? Those with greater ambition will leverage their guaranteed  income into businesses and enterprises that will take advantage of technology to generate more income while others will be content to just live on what they have.

Using time more wisely to prepare ourselves for what seems to be inevitable change just makes sense.  The tools to learn new skills or develop new ideas are readily available at relatively little cost, it just requires discipline to devote the time.

BUILDING AN EMERGENCY PLAN

Recent events in Alberta have pointed out how essential it is to have an emergency plan to deal with  unforeseen circumstances.  The meltdown in oil prices has put 44,000 Albertans out of work in the last year, and the fires at Fort McMurray has devastated thousands of families, many whom may never recover.  The social safety net of EI helps a few, but for many the EI is running out and they are having to resort to using retirement savings and credit card debt to survive. 

Having a plan that protects against the unpredictable is essential, it is just good risk management.  Here are six simple steps that can help build a strong safety net, that allows for independence in tough times and good.

1.       Reduce credit card debt, car loans and unsecured lines of credit - These kinds of high interest debts are costly and strain the family budget.  Get some help, find an advisor who can assist with reorganizing and reducing  the interest payments.  There are ways to do this that can be crafted to meet just about everyone’s needs.  Taking control of debt and reducing the interest payments relieves stress on the family and the budget.  It would be easy to suggest to just get rid of the credit card but that can be difficult, however with proper planning and wise  use of credit it is possible to pay off the credit card every month and not have the high interest payments.

2.       Use the savings made in step one to begin building a safety net -  One excellent way to do this is to set up a Tax Free Savings Account and begin making monthly automatic deposits.  The investment can be a investment fund or other investment vehicle that has higher potential earnings than a savings account and the added advantage of being a bit harder to get at than a savings account.  Resistance to temptation to spend is essential.

3.       Review all employee benefits, especially disability benefits -  A sudden illness or injury can cause havoc if there is not adequate insurance to replace at least seventy five percent of monthly income.  Often group plans cover long term disability and leave the short term disability to Employment Insurance which is about $450.00 per week maximum for 17 weeks.  If $1,800 a month is not adequate to meet your needs consider purchasing additional individual coverage. You may not see the value today but if you are ever disabled it will pay you back tenfold.  It doesn’t have to be expensive often an accident only plan with a critical illness rider is enough. Know what you are covered for before you need it.

4.       Consider purchasing Critical Illness insurance - This coverage will pay a lump sum 30 days after a diagnosis of a critical illness such as heart attack, stroke, cancer or open heart surgery.  A number of other illnesses covered, but the big four are the key’s .  The lump sum payment in the event of a claim, helps with the costs not covered by other plans such as travel or making the mortgage payment. 

5.       Life insurance - No one wants to talk about dying too soon however it is a risk and needs to be addressed if there are loved ones who will be left behind.  Buying life insurance is not quite the hassle it used to be several companies now have electronic applications with guaranteed issue up to $500,000 and the premiums are affordable less than 20.00 a month for $500,000 of coverage for a male non smoker age 25.  Protecting the family has never been easier.

6.       Think long term -  Reducing debt takes time, building a nest egg also takes time. Having an emergency plan only makes sense, you may never use it but if you do you will be very glad you did the preparation in the first place.

 It is your right to live your life by design not default.  You can take charge and with the help of a qualified financial counsellor you can achieve your objectives.  Life does not have to be a rat race nor do  you have to live in a rut.  Make the decision today to take the first step call a reputable financial councillor and get started today. The rest will be easy.

At Guidance Planning Strategies we believe offering sound financial planning ideas is our obligation, the first consultation is free, we will provide a written summary with recommendations at no charge or obligation.  Call us today to set up an appointment, you owe it to the rest of your life to make sound decisions today.

Colin J. Campbell CFP, CLU, is managing partner of Guidance Planning Strategies Ltd. in Cranbrook BC.  Guidance Planning Strategies Ltd.  is an wealth management firm serving the Kootenay’s since 1995.  Specializing in helping families and entrepreneurs live life by design not default.

colin.campbell@gpsbc.ca

www.guidanceplanningstrategies.ca

Why the Canadian Dollar is not worth what it used to be

For years the Canadian Dollar was set at a fixed value against the US dollar, up until the mid 50's it was at $1.110 per US $1.   The Diefenbaker government in their wisdom revalued it to  $.92.5  per US $1 and in 1970 the Liberal government of Lester Pearson decided to let it float against the US $ and ever since we have lived in with a dollar that has been as low as $0.69 and as high as $1.10  with no real reason for the vast fluctuations.  Oh it is described y the odd economist as a phenomenon that is caused by the fact our economy is directly related to the price of oil.

To some extent that maybe correct, however the fact remains that we are a nation of 33 million people  spanning the second largest country in land mass in the world, living right next door to the largest world economy with 350 million residents.  We are the United States largest trading partner and our very economic existence is directly tied to their economy.  So why would we not fix our dollar to theirs?  Doesn't it just make sense?

Another argument that is often posed is that having a dollar worth less than a dollar is good for exports, however it is also harmful to our ability to be competitive producers. It is far easier for companies to claim profitability because of a weak dollar than to pay attention and spending capital on research and development and improving productivity.  The reality is that if you have to compete on a level playing field you will either get better our you will cease to exist. Competition is good for everyone it leads to innovation and better efficiencies. Hiding behind a cheat dollar does not make our producers more efficient if anything it makes them weaker and susceptible to being driving from the market.

We also hear the suggestion that Americans will travel to Canada more readily if their dollar is worth more.  Right where do Canadians want to vacation? In Canada or in Mexico, Hawaii, Florida, California and Arizona, Americans are no different than us, they would much rather go somewhere warm as opposed to coming here.  Let's get serious and stop telling ourselves fairy tales, Canada is never going to be a tourist mecca, it is an interesting place to visit but does not rate high on many bucket lists.

You may recall that in 1987 Canada and the US signed a Free Trade Agreement, and in 1994 Mexico was added. The result of the NFTA was a significant increase in Canadian exports to the US, and then along came a weak dollar.  Since that slump exports have never reached the level they were, The NAFTA did not prevent a softwood lumber tariff being imposed by the US and 75% of our exports go to the US, ($300,000,000). Whether we like it or not our lives are governed by our relationship with our nearest neighbour to the south.  For that very reason alone it is high time we acknowledged our dependency and fixed our dollar to the US dollar,  it should be a par however $0.90 would be fine.

Would this be good for both economies? Yes there is no question both countries would benefit. Canadian companies would be slightly compensated for distance to market and the smaller employment base which impacts manufacturing industries and both economies would benefit from a stabler currency exchange.

Why is this not happening?  Probably because we Canadians just go along with whatever the government of the day puts forth, we are too complacent, we don't question why decisions are made nor do we stand up and shout out loud that this isn't working.

For over 100 years we have lived in peaceful coexistence with our neighbours, we give them hockey players, wheat, lumber and autos, they give us all the rest and a place to spend the winter where it's warmer.  However the fact remains we really are like a pimple on an elephant rear constantly concerned about being squashed when the elephant sits down.  Fixing the rate of the Canadian dollar at par  would go a long way to achieving parity in our relationship. It should never have been allowed to float in the first place. Some misconception that we would be able to take our place on the world stage if we behaved like the rest was probably the reason it was let go in 1970.

Maybe if we all got a little peeved at government and sent the PM an email stating our displeasure something might get done.

The Power of a Positive Affirmation

In a recent interview Joel Osteen talked about how what we say about ourselves after the words “ I Am” can have a profound effect on what we achieve and who we are. It is so true, your self talk can determine your success or failure, it is  your choice if it is positive or negative. If you make a statement about yourself such as, “I am a very successful public speaker”  chances are you will be a very good public speaker, but if you say, “I am not a good public speaker in fact I don’t even like to speak in public to more than two people.”  That is exactly who you will be. 

Your mind is the most powerful tool you have in your resources, it has nothing to do with what you learned in school, what you read in books, who your parents are or how much money you have in the bank.  None of that matters because it all comes down to how you answer the question and what you put after those two words…. I am…  

One way to change your self talk is to write positive affirmations, write down what you want to be, act or do, even if what you write is as far from reality as you can get.  If you write what you want to be instead of what you are that is what will be manifested.  Read your affirmations twice a day when you get up and before you go to bed. Put them on the mirror in your bathroom.  Affirmations have a powerful effect, they cause your mind to start to believe what you are telling it and it will begin to move in the direction of making it a reality.  

Osteen, who is head of the Lakeland church in Houston with over 50,000 members is an excellent public speaker, he preaches in his church every Sunday and is seen round the world on television.  He was not always a good public speaker, in fact he had no desire to preach in public.  He transformed himself simply by changing what he was saying about himself after I Am.

 

What struck me about this was the familiarity I had with the term I AM, it was God’s instruction to Moses at the burning bush. Here is the verse from  Exodus 3:14 “ God said to Moses, “I am who I am.” And he said, “Say this to the people of Israel, ‘I am has sent me to you.’”   The fear that Moses had was of public speaking.  However he obeyed and went did what God told him to do, the words he needed came when required. He changed the affirmation to the positive.   He went on to lead the Children of Israel  from the Egyptians and enter the promised land and gave the world the ten commandments. 

By using God’s name “I AM” in our affirmations,  we are invoking His blessing, especially when the affirmation is in the present positive tense. Such as I am, a successful writer of best selling books, or I am a successful entrepreneur or whatever you want to achieve, there is no limit to what you can accomplish for if you do this simple process you will have God on your side.  It has been said that one with God is a majority.  

Give it a try, write down what you want to achieve as a positive personal affirmation of what your deepest desire is, read it every day. It only takes a few minutes and you will be amazed at the results.   

Happy Thanksgiving, today is big with blessings, open you heart and let the Universe reward you.  

Some Thoughts on how to be a successful Financial Advisor

Setting goals is essential to success.  The problem is that most goals are not defined properly.  Goals must start with why, this is essential.  It is often overlooked, we are so ingrained by television and media into believing that what is important is not why but how and what.  We have to change our thinking about this concept. 

To illustrate this point think about the television ads you have seen lately, the ones that drive you to mute them or switch channels, they usually tell you they will save you money or that they have a sale on.  The reality is that the sale price is the real price, they all have perpetual sales.  I have never once been in a J C Penny store in the last 20 years and not had at least 50% off the retail price. Now think about the Canadian Tire ad for summer water pistols where the guy proposes a peaceful outcome and gets totally soaked by the kids with the water guns.  

The normal ad focuses on what,  50% off, the Canadian Tire ad focuses on why, it’s summer time, it’s hot and there is nothing that feels so good and is so much fun as a good old water fight and if gramma or grandpa is involved even better. 

I saw another one today the new Ram truck ad for the NFL broadcasts with Paul Harvey talking about God making farmers, if it doesn't make you cry I would be surprised.  The important thing is that it is about 'Why"  not about a cheaper truck. https://www.youtube.com/watch?v=AMpZ0TGjbWE

The problem with goals is that they are not well defined in the present positive sense on paper, they have unrealistic time frames and there is no commitment to succeed no matter how many times one fails.  Saichiro Honda said, “Success is 99% failure.  Thomas Watson the founder of IBM said, ”that if you want to increase your success double your failure rate.”  But this quote probably sums it up best of all,  “I’ve missed more than nine thousand shots in my career. I have lost 300 games. Twenty six times I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again all my life…… and that is why I succeed."   Michael Jordan

To be an independent financial advisor requires a special individual, an entrepreneur with a high desire to succeed, intellect, means and a market.  The industry has a very high failure rate, in  year one as high as 95%.  Of the 5% who make it to year two only 1% last five years.  Those that do succeed  were those who were willing to go the extra mile, they were the ones who said every "no!" is one step closer to the next yes. The problem is that getting a lot of rejections can be painful, that pain is the number one reason why so many talented individuals do not make it as independent financial advisors.

What can you do to defy the odds?

Start with your "Why" define your goals, write them down in the present positive tense, read them everyday.Don't be afraid to set big goals, just understand that there are no unrealistic goals only unrealistic time frames. Now you know Why and What. The way to achieve a goal is to develop the "How" , a process.  With a process you you can repeat it over and over until you can perform the process without thinking just like Michael Jordan. 


A Simple process that works
 
 Nick Murray in his book, Serious Money explains how he used the research  of Dr. Aaron Hemsley to change his outlook to prospecting.  By following this simple process Murray became one of the most successful mutual fund salesmen in history.  If you take this to heart and follow this simple way of approaching the sales process you can very quickly eliminate the pain and begin to have everyone say yes.

Dr. Hemsley was an insurance agent, he qualified for MDRT and had moved into management, there he discovered that he could recruit highly qualified individuals who could not get through the first year in the business all because of the pain of rejection.  At that point he decided to go back to school and get his PHD in human psychology and spend the rest of his life studying how advisors deal with objections and to teach them how to get by the problem of rejection.  You can learn more about Dr. Hemsley at his website, https://www.aaronhemsley.com/

The prevailing thought of our industry is that you have to make 10 calls to get three appointments and make one sale.  That maybe true if you are asking for an appointment to sell insurance.  But that isn’t what we do, we develop relationships with people and help them to make smart choices about how they use their money.  

Here is Hemsley’s approach as used by Nick Murray.

1.      It doesn’t matter what you say to someone, it has all to do with how you say it.  If your subconscious mind thinks that the objective is to sell them something then that is what will be conveyed in your conversation.  If you change that to a different objective, such as going for coffee or chatting about the weather with the objective of getting to know the other person then your subconscious will take a different tract and you will come across as someone who could be a resource. 

2.       With that in mind you can now ask everyone you meet to go for coffee.  You will record the number of times you ask.  Use the back of a business card,  a tick mark is all that is necessary.  Do this for a week, add up the number and divide by five.  This is your bench mark, the number that you are going to contact every day and ask to go for coffee. 

3.       Now repeat that simple process for four weeks, if the benchmark is 3 per day do that for five days for four weeks.  Simple, easy,  all you need to implement the plan you have between your ears.

4.       At the end of four weeks add one more per day and do that number for four more weeks and so on.

5.       Now the question arises what if I fail?  Well I guess you could quit, commit suicide, or you could do the reasonable thing and recognize that failure is not the end and start over.  

6.       Here’s the cool part about this concept, you will reach a point very early in the process where  you will be converting 10 out of 10 to clients in a short period of time.   And you will no longer fear making a call.

Four Simple Rules to Improve your Life

We live in a world of opposites. For a millennia the world believed that the sun revolved around the earth.  What could be more obvious,  the sun rises in the East and sets in the West.   We know that this has been proven to be the exact opposite of reality, what appears to be real is an illusion.   Learning to accept what appears to be real as just an illusion is  not easy, however if you  want to have a happy healthy abundant life it is an essential trait to learn.

 We all are busy; work, family, community. We know  our need to rest and relax is essential  however when we are busy it is easy to ignore.  We will give up recreation or family time for work, or in some cases we will give up work for family time, either way the balance of our lives will get out of sync.   When that happens something is going to give and often the result is not pleasant.

The irony is that what we really should do is exactly opposite to what our human nature says we need to do, instead of working more, we should work less.  Instead of trying to find more time for ourselves we should devote more time to others, either family or community.   There are several key principles that are laws of nature that we tend to ignore, changing our approach to these and giving them more importance in our lives,  can make our lives more rewarding, filled with abundance and good health.

These four rules are the opposites that can change lives.  

1.  Giving gets- the more you give the more you receive.  Spend more time volunteering in your community , giving of your time and talent to the benefit of others with no consideration for what you will receive in return will result in you receiving more than you give.  J. Paul Getty, the great American industrialist, once said that his secret to success was helping others to be successful .  His company had more millionaires working there than any other company in the country.

When  you think you don't have enough time to devote to your job or business, go join a service club, give back to your community.  Volunteer, do something that is a contribution, you will be amazed at the impact this will have.  Learn to pay it forward, giving of yourself to the benefit of others is the key to the abundance of the universe, which is waiting for you to insert the key and unlock that outpouring of abundance.   This is opposite to what your instinct tells you to do.  Your initial reaction is to dismiss this as nonsense and to try to work harder to spend more time at your business.  

Watch this interview with Arianna Huffington which supports this concept., http://www.inc.com/arianna-huffington/founders-forum-how-huffington-learned-to-thrive.html

2.  Gratitude -  Be grateful everyday for all that you have received.  It could be as simple as saying thank you for the air your breath, just be grateful.  Write it down, start a daily journal and write down what you are grateful for everyday.  Don't question this one, just do it,  it will change your life. 

3.  Forgive - Whenever you feel you have been mistreated or maligned by someone, say I forgive you.  Put it on your calendar that you forgive.  Don't hold a grudge, get rid of it,  forgive and forget.   You will be amazed how your life will change when you forgive, it is the key to your happiness. 

4.  Love -  Nothing could be more important than to love.  Love is the answer, it is the elixir of life.  Love one another,  be kind to your fellow man.  Love all mankind.   Love destroys hate, it will heal a broken heart, it will lead to peace. 

There  you have it, four simple rules which if you practice them will make you a better time manager, improve your business and your health. 

Johnny Mercer , one of the great composers of the 20th century said that when a producer would call with a request for a new piece of music for a specific movie, he would sit down at the piano and if the inspiration did not come in the first fifteen or twenty minutes he would go out. His favourite pastime was to play golf,  on his return invariably the inspiration for the song would come and in no time the composition would be complete.  

Every day is exactly the same as it has been for millenniums.  Nothing changes except the seasons.  Life is not a rat race,  whatever appears to be  reality to you is not real. You can take control of your life, accomplish more and be happier and healthier and live longer,  just  do exactly the opposite from what you inner self suggests.  It's your time, you can think your way to success.