By Colin Grimson
As I read about the Madoff, Norberg (Vincent Lacroix), Earl Jones investment scams that have shaken the lives of big and small investors in the past couple of years, I couldn't help but wonder how the victims of these unscrupulous investment consultants came under their spell. Once in touch with them, didn't the investors check the credentials of these men they were about to entrust their worldly wealth, however large or small, to? Obviously not. In one case, the investor agreed to invest more than one hundred thousand dollars in an off-shore company and he did not even ask what the company produced.
A simple call to a bank, or one of its investment agencies, should start an investor on the right track. As a prelude to opening an account, a questionnaire that establishes the investor investment goals. An important element will be the level of risk the investor is prepared to live with. This level of risk can be referred to for each and every investment that is made to ensure that every investment is within the level of risk decided upon at the outset. Having an trusted, accredited advisor who understands the level of risk you can stand is vital.
Having an idea of what a reasonable level of return on an investment is another important element in this business of investing. One place to start is with the interest rates for Canada Savings Bonds because the capital is guaranteed, but that's also why the interest rate is very low. So if you become attracted to an investment that promises a return considerably higher, you need to check the risk.
Our governments, federal and provincial, should be taking steps to ensure that anyone involved with advising investors is properly licenced, and a serious look should be given to the penalties for violations to the law. The jail time spent by Vincent Lacroix to this point has been a joke considering the damage his unscrupulous actions have inflicted on his clients. At the same time, investors have to remain prudent and curb their rush to grab unrealistic returns on their money.
Given the need for investors to have trust in the investment markets, these unscrupulous financial consultants pose an even more serious threat to the economy. Until now, I haven't felt that governments have become serious about this issue. Till they do, investors will have to be doubly vigilant.
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The Trinity United Church Restoration Committee wishes to thank everyone who contributed articles to its recent garage sale and to all who came and bought little "treasures."
Anglican Church services for the next two weeks will be: Oct 18th - Sawyerville [9:15 MP], Bury [11:00 MP], and Cookshire [11:00 MP]; and Oct 25th - Sawyerville [9:15 MP], Bury [11:00 MP], Cookshire [11:00 MP].
United Church services for the next two weeks will be as follows: Oct 18th - Sawyerville [11:00 am - in the Manse and Sunday School]; and Holy Trinity, Cookshire [3 pm - Covenanting Service for Rev. Wendy Evans], and Oct 25th - Cookshire [9:30 am], and Sawyerville [11:00 am - in the Manse and Sunday School].
The next two issues of The Journal (with my deadlines in brackets) will be Oct 28th (Oct 19th) and Nov 11th (Nov 2nd), and I can be reached at 819-823-5583 if you have an event you wish to appear in this column.
