Our Philosophy: Fortune Favours the Brave
Many years ago, I bought a ring I still wear to this day. I’m still not sure what prompted me to buy it. It’s not like I’m in the habit of buying jewelry on a whim!
But for whatever reason, this particular ring, and its inscription, resonated with me—and still does. It reads (in Latin):
Fortes fortuna iuvat.
Which translates to:
Fortune favours the brave.
This is a deeply held belief of mine. Summoning the courage to push past your boundaries leads to new opportunities. And these new opportunities might be something tangible (e.g. a new job, better relationships, healthier lifestyle) or may manifest as an internal shift (e.g. you see yourself differently).
So for me, bravery is on display anytime you hesitate to do something because of fear or anxiety—but summon the courage to do it anyway.
Fortune Favours Brave Investors
So if fortune smiles on the brave, then what can we do to be more brave, more often? (If it were easy, everyone would be doing it!)
In my experience, what people often need is encouragement that’s backed by experience and wisdom.
At Pedersen Group Wealth Management (HollisWealth, a Division of Scotia Capital Inc.), we sometimes see this when people meet with us for the first time. They’ve paid little heed to their financial situation over the years, and they’re afraid to take a close look. On some level, they’d rather not know what they don’t know.
It’s the “ignorance is bliss” argument.
But let me to tell you, when it comes to your financials, ignore isn’t bliss. Ignorance is trouble.
No matter how much you fear what we’ll find—it’s never too late to make positive changes. And the sooner we get started, the better the prognosis for your future.
The same logic applies to getting adequate medical coverage. For example, I had been encouraging a client to get medical insurance for some time, but she always had reasons for not proceeding. Finally, I realized she was reluctant to complete the required medical exam. “What if they find something bad?” she worried.
Admittedly, I’ve had some personal experience with this. And I can tell you that the purpose of the medical exam isn’t to find something horrible so you can live the rest of your days in misery.
The purpose of the exam is to catch problems early. Because the earlier you catch problems, the more options you have for treatment. Believe me, it’s better to know and have options than to not know (or know at the 11th hour) and have none.
Balancing Risks and Rewards
Another example: A client recently came to us with a portfolio made up entirely of GICs and was very reluctant (read: scared) to diversify.
While there’s nothing wrong with putting part of your portfolio in GICs, it’s not wise to put all of your savings into one investment vehicle. And in this case, keeping all of his investments in GICs was not going to give him the return he needed to reach his goals.
So we gave this client the support he needed to bravely push past his reservations and diversify. And he was willing to do it, thanks to the depth of our knowledge and experience.
Yes, all investments carry some degree of risk. But you have to balance that risk with the risk of doing nothing (or doing the wrong thing).
When Does Bravery Cross the Line?
Of course any discussion of bravery has to include a mention of recklessness. “Being brave” doesn’t give you permission to sally forth in ignorance, trying to will things into existence with the force of your courage.
Sadly, things don’t work that way.
Even in bravery, you have to keep both feet on the ground. And when it comes to your financials, we’re here to help you do that as well. Which is why we reserve the right to invoke the “now let’s not get stupid” clause in our contracts.
(No, our contracts don’t really have a “now let’s not get stupid” clause. But we sometimes pretend they do.)
So if you decide to quit your job, sell your house and move to Thailand in an act of gallant bravery, we’ll invoke the clause and urge you to find a middle ground. Why not start by taking a sabbatical and try living in Thailand for a few months instead?
If you trust us enough to be brave, you can also trust us to be the voice of reason.
Fortune favours the brave.
This article was prepared solely by Darren Pedersen who is a registered representative of HollisWealth® (a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada). The views and opinions, including any recommendations, expressed in this article are those of Darren Pedersen alone and not those of HollisWealth. ® Registered trademark of The Bank of Nova Scotia, used under licence.
HollisWealth is a trade name of Scotia Capital Inc. and HollisWealth Insurance Agency Ltd. HollisWealth is a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Brokerage services provided by HollisWealth are provided through Scotia Capital Inc. Insurance products provided by HollisWealth are provided through HollisWealth Insurance Agency Ltd. ® Registered trademark of The Bank of Nova Scotia, used under licence.
Pedersen Group Wealth Management is a personal trade name of Darren Pedersen.