#128 New Money Doesn’t Require A New Plan


  • RRSP season is here, and everyone’s getting ready with their “top picks”
  • New money – RRSP season deposits
  • Too much jumping in and jumping out – trying to give reason to something that can’t be reasoned with
  • Shouldn’t ever be trying to “beat the markets” – says nothing about value.
  • Should actually be selling out of assets as they become over-valued. -> popular can be bad. Just because it’s sellable doesn’t mean it’s good.
  • Don’t want to be a Guiney pig either.


  • Plans don’t fail during the bad times; they fail during the good times. We just don’t find out about it until the bad times.


  • Battle on ETFs vs mutual funds. Many mutual funds underperform the benchmark. By their nature they have to – otherwise the benchmark wouldn’t be a very good benchmark. ALL ETFs underperform their benchmark.
  • Don’t care what your investing preference is - Statistics on why the average investor underperforms the funds they own.


  • Extrapolate with dollar values
  • Doing a good job if all we ever have to do is top-up existing investments. Not a sign of laziness – a sign of courage.


  • No new investment every time you see me.
  • Strategic asset allocation is solution
  • Removes emotion of greed – or at least reduces percentage invested in it.
  • Stick with it.
  • Constant process – but not too regular (need to let some gains run)
  • Base policy mix appropriate for your goals.
  • Choosing your investments shouldn’t be sexy. It should be scientific, and graceful, and structured.
  • Add money when markets fall and build back stability as markets rise.
  • New money – doesn’t need a new plan. The most efficient way to earn above-average returns is by investing at below-average prices. If the markets are up, then it’s likely you’re on the upper end of your strategic asset allocation. Use the new contribution to rebalance you back down. And if the markets are having a hard time and equity investments are down, use the new money to take advantage of the depressed prices and top them up until you’ve reached your target asset allocation.
  • Reduces your overall volatility & Forces you to buy low and sell high naturally, without all the timing pressure.


Written by Meagan S. Balaneski, CFP, R.F.P CERTIFIED FINANCIAL PLANNER®
Advantage Insurance & Investment Advisors

Investment Funds Representative
Manulife Securities Investment Services Inc.

The opinions expressed are those of Meagan S. Balaneski and may not necessarily reflect the views of Manulife Securities Investment Services Inc.