Several friends in the past month have, for one reason or another, asked me to describe my working day to them. I also used to get this question a lot during my time as a mutual fund manager.
“I lived in the GTA for 44 years”: Why an associate investment advisor swapped Toronto for Pelham
Who she is: Gail Taylor, 62, associate investment advisor turned receptionist
Where she lived in Toronto: A one-bedroom condo near Yonge and Eglinton
Where she lives now: A two-storey, two-bedroom townhouse in Pelham, in the Niagara region
Gail: I grew up on a dairy farm in Clifford, Ontario, which is about an hour’s drive from Kitchener. At 15, I came to Toronto for the first time with a friend. My brother was studying at George Brown, so we went to visit him and to see Alice Cooper perform at Varsity Stadium. Coming from a small town, it was a bit of a shock—but I loved the excitement. Two years later, in 1974, I decided to move to the city. Shortly after, I met my future husband and, when I was 18, we got married in a small church during a bad blizzard. It was just before Christmas in 1975. Our daughter, Jenny, was born a couple years later.
In 1989, we bought a bungalow in Burlington for roughly $200,000. When Jenny was young, I took a job at a temp agency. I got an assignment with RBC and they eventually asked me to stay on, so I got my broker’s licence. That’s how I ended up becoming an associate investment adviser. My husband and I split up in 1996, but it was a friendly divorce. Around the same time, my daughter left to study psychology at Western University. I’d been taking the GO Train into Toronto for work, and I was sick of the commute, so I decided it was time to move back to the city. I rented a one-bedroom apartment at Yonge and Eglinton for roughly $650 a month. I really liked the area. It’s not the nitty-gritty of downtown, but it’s within walking distance. I enjoyed going to movies and grabbing food at Chick’N’Deli.
One day, in 2001, I was walking to yoga along Mount Pleasant, and I saw a sign for some condos. Before I knew it, I was in the showroom and I’d bought a pre-construction one-bedroom apartment for $187,000. In 2003, I finally moved in. It was a brick building with a gym and a party room. My unit was on the ground floor.
After university, Jenny got married and moved to the Pelham area with her husband, and, in 2006, my granddaughter Olivia was born. Jenny had two more kids, Emma and Marco, shortly after. That’s when I started to get a twinge to be around my family. I would take the GO Train out to visit them, because I don’t have a car, and I’d always feel sad on the ride home. I had plenty of friends in Toronto, but after my sister passed away in 2016, I knew I needed to be closer to my loved ones. I wanted more balance, too. My life was basically rushing down to the subway, working, then going home. And while the street-level apartment was fine when I bought it, over the years, the road got much busier and noisier.
Then I got lucky. My daughter and her husband found me a two-storey, two-bedroom brick townhouse in Pelham for $220,000. They took care of the renovations while I stayed in Toronto. They put in new tiles and carpets, and replaced one of the ceilings. That cost me an additional $20,000. When I sold my Toronto apartment for more than $500,000, in early 2018, that helped cover the cost of the house, along with the renovations. The rest of the money went toward savings. After I moved out to Pelham, I still worked in the city a few days a week, either commuting on the Go Train or staying at a friend’s place. In late 2018, I got a part-time job at a retirement home near my place, mostly doing administrative stuff. I’ve gone from a full-time salary as an investment advisor to a part-time hourly wage, but it’s exactly what I wanted: very social, very nice, none of the hustle and bustle. I walk out of my house at 8:30 a.m and I’m at work in about 10 minutes.
Life is great. My neighbours are really nice. I like to hang out on my patio, where I can feed the chipmunks and squirrels, while the blue jays twitter in the trees. I even saw a bunny the other night. Back in Toronto, the most wildlife I got was a couple of racoons fighting. I haven’t been back in months. I do miss things, though, like taking a stroll on a long sidewalk. I’m a huge walker. My friends and family are always asking, “Where did you walk today?” It’s the perfect time to think and just observe nature. In Toronto, I particularly liked gawking at all of the old architecture. I also miss the hot dog vendors, the ROM, the AGO. I used to be able to step out the door to a small indie movie theatre. That kind of cultural experience is available in Pelham, but you have to work a little harder to find it.
The best thing about living here is that I get to see my grandkids a few times a week. My daughter and her husband live on a farm just outside of town. I can watch Marco, who’s 9, play hockey. Or when Emma and Olivia, who are 12 and 13, have ballet or gymnastics, I can cheer them on. During the school strike days, I’ve been helping take care of the kids. I sometimes sleep over on weekends. It’s like I finally get to be a full-time grandma.
Several friends in the past month have, for one reason or another, asked me to describe my working day to them. I also used to get this question a lot during my time as a mutual fund manager.
The investment business is really a 24/7, 365-days-a-year affair. Managers are always thinking about stocks, the economy, world events, even when they are not at the office. Everything impacts the markets. If you are not paying attention — always — you are going to miss something.
But in case anyone else is wondering how an investment professional spends their “working hours,” here’s a breakdown into five categories.
I wake up when a three is the first number on the clock. Part of the early wake-up call is a habit from my old competitive swimming days, but it is now work-related. Simply put, with access to information much easier for every investor these days, an early start is one of the only advantages an investor can get.
Company news — takeovers, acquisitions, contracts — typically comes out in the mornings. Having more time to analyze this news, rather than just reacting to it 30 minutes before markets open, can give you an edge. For example, suppose a company announces a takeover and that it is accretive to earnings. With enough time, you can run your own financial models, rather than just taking a company’s word for it. Advantage: early bird.
Not all news, of course, comes out in the morning. Earnings releases tend to be before or after market, but companies can issue press releases anytime, and there are always virtual conferences and conference calls to attend. The United States Federal Reserve might make an announcement, or the Bank of Canada. The past 18 months has also required investors to become COVID-19 experts, watching virus and vaccine news like a hawk. Basically, any piece of news can move markets.
Sometimes, news you think isn’t so important gets picked up by a larger crowd, and stocks and markets can move erratically. There are rumours and facts to listen to and then decide if they are important. My Bloomberg screen can put out hundreds of press releases a minute. One could spend an entire day just reading these headlines, so quick decisions and time management often become crucial habits.
If I have learned one thing In my career, it is that company executives can lie, sometimes outright. At best, they are expert salespeople. At worst, they can be corrupt fraud artists. I have learned to not really rely on them. Numbers, on the other hand, particularly cash flow, are a lot harder to manipulate, so running data screens is a major part of my day.
I screen for all sorts of things, but start with the new highs from the day before. This gives me some new ideas to investigate, as I need to see what all the fuss is about. But screens can be done on pretty much anything, and I like to look at return on equity, sales growth, earnings revisions and dividend increases, amongst other data points. With 10,000 stocks in North America, screens at least keep the potential investment universe manageable.
Meeting with company executives is still important, but not for the reason many think. Generally, because corporate executives need to disclose all information to all investors, you are not going to get any juicy new information from repeated or one-on-one meetings. But it is important to meet a management team in order to get a feel for the company’s approach and long-term goals, and specifically whether you can trust them.
Managers and investors don’t need to meet with executives every quarter. Let them run the business. Many company executives, and fund managers, too, have decided these meetings are a bit of a waste of time, and prefer to let the numbers do the talking (see the prior point). I’ve been to thousands of meetings in my career, but I took fewer and fewer meetings as my career progressed, and had more time for real research rather than listening to a sales pitch. One caveat: I do like talking to the competition of a company I am researching. Competitors will tell you the flaws of the other company. Management won’t.
One needs customers, so whether you’re a portfolio manager, analyst or someone helping do-it-yourself investors, part of any investment professional’s day is spent marketing. Current customers always have issues, enquiries need to be answered and there are always new customers to win over.
More than half of my day as a portfolio manager during the financial crisis in 2008 was spent calming investors down, whereas I would have preferred to be spending that time trying to manage an imploding investment world. But it is a necessary task. If my customers all leave, there isn’t much point focusing on the other four points above now, is there?
Peter Hodson, CFA, is founder and head of Research at 5i Research Inc., an independent investment research network helping do-it-yourself investors reach their investment goals. He is also associate portfolio manager for the i2i Long/Short U.S. Equity Fund. (5i Research staff do not own Canadian stocks. i2i Long/Short Fund may own non-Canadian stocks mentioned.)
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With years of attention paid to educating older Canadians about protecting their money from fraud, it may be surprising that many younger investors have fallen victim to get-rich-quick pyramid schemes, bogus virtual currencies, and more.
Perhaps equally surprising is how New Brunswick’s financial and consumer services regulator feels Millennials are disinclined to take financial advice from a Crown corporation.
“We know this demographic is notoriously difficult to reach,” says Marissa Sollows, the director of education and communications with The Financial and Consumer Services Commission of New Brunswick (FCNB).
In an interview with Huddle, Sollows cites FCNB’s research, in addition to research coming from other provincial commissions, confirming Millennial investors are in some cases at higher risk of falling for poor investment pitches or making decisions without the right financial knowledge.
In the first nine months of 2021, 20 New Brunswickers reported losing nearly $711,000 in crypto investment scams, according to the Canadian Anti-Fraud Centre.
“When we started looking at this situation in New Brunswick, it became clear as we saw different trends in DIY investing and interest in crypto and that this was an audience that we needed to try and reach,” explained Sollows.
Sollows says Canadian investors in their 20s and 30s approach their finances from a different cultural perspective than their predecessors: research shows they are less likely to want to work with a financial advisor and want more hands-on control over their investments.
But Sollows says there is also fear that they don’t know enough about investing and are worried about losing money.
“To come from a regulator, we sort of recognized it wouldn’t work as well for this audience, who get their information from different sources and who have different levels of trust with those different sources,” said Sollows.
In an effort to respond with something meaningful for the Millennial segment, FCNB designed a new awareness campaign that was outside its traditional outreach. Where social media has hooked young investors on finance, FCNB decided to put more of its campaign resources on YouTube, Twitter and, for the first time, TikTok.
For Sollows, that meant focusing not just on what channels Millennials were getting their financial information from, but also trying to understand how they were interacting with those they perceived as “experts” and where that financial advice was coming from — whether legitimate registered online trading platforms, or somebody purporting to be an expert with a hot tip.
“There’s a much higher level of comfort, with the younger generation, with technology and with putting trust in their peers in these different online forums as opposed to going to a traditional financial advisor that their parents would have had more trust in,” says Sollows.
On Nov. 22, FCNB launched “The Right Recipe,” a new investor education campaign targeting Millennials and do-it-yourself investors with resources designed specifically for them.
FCNB campaign videos serve as explainers on a variety of topics–including fad investing, multi-level-marketing schemes, influencer scams, and high-risk investment products–while reinforcing the steps any investor can take to protect themselves and their money.
Covid-19 lockdowns and uncertainty translated into a meteoric rise of online DIY investment platforms and trading apps, leading many to investment possibilities for the first time at the touch of a button. Others are getting their advice on social media and choosing instead to test unconventional methods. But, as Sollows points out, these often “prey on FOMO” (fear of missing out) on advertised payoffs.
The rise of “finfluencers” (a specific type of influencer who focuses on money-related topics) have made full use of platforms like TikTok, Instagram, and YouTube to get the attention of young investors. Couple that with Millennials increasingly willing to devote cash on decentralized cryptocurrencies and hot stocks – with much of that advice coming at them through social media – and you’ve got a scene rooted in familiar tones.
Interactive Investor, A UK online investment service published a July survey showing more than half of young investors surveyed in the UK who have purchased cryptocurrency like bitcoin or dogecoin have done so using credit cards, or even student loan money.
More unconventionally, users of Reddit have made headlines swelling into pump-and-dump schemes targeting low-cost stocks for small companies. Money inflating the value today might be worthless tomorrow on a pre-planned selloff, leaving young investors holding pennies of worthless stock days later.
Trendy concepts like “Impact Investing,” where a company gathers investment intenting to “generate measurable, beneficial societal and environmental impact, alongside a financial return,” have gotten young people to invest money for the promise of helping a greater good, which often leads to confusion and no return for the investor.
“It’s the same old scam,” according to Sollows, who says it’s just wrapped up in different wrapping paper with a different story around it.
“We’ve seen this kind of thing happen with ‘green investing’ in the past when renewable energy and so on was becoming really popular. The scammers would follow the headlines and build pitches around it.”
On the flipside, Sollows says there’s a need to help young investors navigate many of the legitimate online platforms out there. She hopes FCNB can be a trusted resource to help Millennials make some of their first investment decisions, especially when going the DIY route.
“The Right Recipe” depicts a fictional brewmaster who has heard a lot of financial tips over the years.
He’ll tell you that everybody knows someone who’s made a bundle in the markets. He figured if his customers could do it, why couldn’t he? The example allows the user to follow his investment journey, for better or worse, through videos. That journey is everything from “listening to some rando’s advice on social media” to letting “FOMO be his guide” and blindly “following the latest investment trends.”
In addition to campaigns like “The Right Recipe,” FCNB also offers investment updates and fraud alerts emailed directly to those who sign up on its website and provides a variety of financial literacy topics through both in-person and through virtual presentations. Those sessions are offered to workplaces, classrooms, and the broader community, covering topics ranging from financial literacy and budgeting to investing to fraud prevention.
For navigating the investment learning curve and the possible pitfalls for young investors, Sollows believes the campaign would be a success if people used the information and experience of the brewmaster to instead follow their gut instead of social media when the offer seems too good to be true.
“If you’re being offered some crazy returns on things, and they’re telling you, ‘Oh, I can guarantee you’re going to make this much money and it’s so easy you don’t need to understand it — In any other aspect of your life, if somebody said that to you, would you keep the conversation going or would you walk away saying, ‘No thanks, I’m good.’”
FCNB’s The Right Recipe campaign will run until mid-February, in both English and French on most social media platforms and at: therightrecipe.ca.
Tyler Mclean is a Huddle reporter based in Fredericton. Send him your feedback and story ideas: [email protected].
She’s interested in helping women take charge of their finances and advance in their careers, but her people skills have launched her into the digital side of transforming wealth management.
Casciato was able to wed both aspects in her last job. Given that women are expected to control 31% of the wealth in Canada by 2024, but the industry’s leaders and advisors still don’t represent gender or diversity equity, she was pleased to be able to increase the number of women leaders in BMO’s frontline contact centre roles from 20% to 45% They lead teams of 15 to 20 customer service – or investment – specialists and now are all women of color.
She’s also been the executive sponsor for BMO’s North American Customer Contact Centre’s Diversity, Equity and Inclusion Council and a member of BMO’s employee-run diversity, equity, and inclusion board of directors. She’s pleased that they’ve started mentorship programs and done virtual events, and she often gets to speak to increase awareness about diversity, equity, and inclusion and getting more people engaged. “I get a lot of value in watching women succeed,” she said, “and truly feeling like I’ve helped them.”
Casciato now is head of the section that oversees customer service and sales, but is also driving BMO’s digital transformation across its wealth business. She said her role is “to meet the clients in the way that they want to be served – and, increasingly, they want to be served digitally. For my business, which is self-directed investing, they want to have the best possible platform and servicing that they can have because they are do-it-yourself investors.”
That also means providing them with the ability to connect with the help they require. “Increasingly, I see that as being more digital than phone,” she said. “My experience in the broader wealth business has taught me that for some pieces – particularly when you’re dealing with high-net worth individuals and family offices – there’s a relationship component that’s really hard to replicate digitally. So, we need to be prepared to meet our clients where they are, to have the digital capabilities and continue to have those – face-to-face virtually through technology – relationship pieces with another human because that’s important when you’re dealing with people and their money and advice.”
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