Wednesday, April 15, 2009

Make your game plan for the long run

I hope that everyone celebrating Easter had a wonderful weekend. Spring seems to have blown in like a breath of fresh air and lifted spirits. We'll get some good news, then temper it with a bit of bad. I imagine that we'll ping-pong this way for another year or so before deciding that things will be ok and we can get on with a healthy economy.

I was speaking with a partner and good friend of mine last night who is based outside of Canada. He said, "So, how are things going to be in Alberta over the next few years - is Edmonton still the best place to be investing in?" I replied that there will be some ups and some downs, then the economy will start moving forward again and gain momentum.

He quipped, "I know that! - 10 years from now will this still be a good place to be invested based on the economy today?" My answer to that question is and was a resounding YES.

When traveling abroad, I'm often reminded how North American attitudes tend to be so focused on the now. For many a 5 year investment period can be such a longtime. My friend, a successful investor (he has a substantial Edmonton portfolio) isn't rocked by short fluctuations, but instead studies bigger cycles and longer blocks of time which he accredits as the building blocks of long-term wealth and security.

Spread out your investment game plan to encompass longer holdings mixed with a few shorter term investments that pay out in-between. This will create balance in a portfolio and should match anticipated lifestyle changes that are predictable, business expansion, kids graduation, retirement and so on. An added bonus of this planning structure is that it reduces stress during turbulent times.

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