First Responders

By Paul Jackson Certified Financial Planner

This is my first article, of what I hope to be many more in the future. They will be focussed on Financial Planning and Investing from my perspective of 28 years as a practicing Financial Planner.

We purchased a home in the North Shuswap in 2018 and in 2020 made it our permanent residence. I started my Practice in Chilliwack in 1994 and grew it to a thriving business and have since passed the reins on to one of my Partners who I brought in several years ago. However, I remain highly active with all my clients, as I am far too young to “retire”. In fact, in my business, I am not certain anyone really retires.

Covid has made the transition to working remotely amazingly easy, as it has accelerated people’s comfort and knowledge in doing things online, phone interactions, Zoom meetings and ESign Documents. There is literally nothing I cannot do from the North Shuswap that I could not do from my office in Chilliwack. It is awesome to be able to gaze upon the lake while working! Amazing how technology has advanced! Whether we perceive this as good or bad is another story.

While I am adept at anything within the Financial Planning realm, my strengths lie in Portfolio Management, Retirement Cash Flow planning, Tax Planning, and Investor Behaviour. Over time, I hope to focus on these areas in my articles and I will try to make the information topical for the times.

Since the Kicker and Scoop are monthly publications, one never knows what might be going on precisely at time of publication. But, as I write this, the current environment from an investment standpoint reminds me of 1999, during the Tech Bubble.

The way that I invest with most clients is by utilizing a process based on Post Modern Portfolio Theory, or more generically – Diversification. Most investors do poorly over time because of their own poor behaviour. By adhering to a process, we can insulate ourselves from our own behaviours.

There is a great quote from Benjamin Graham, who was the father of Value Investing. He explained that “in the short run, the market is like a voting machine – tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine – assessing the substance of a company”.

These words were true in 1934, just as they were true in every Bear Market and Bull Market of the past. In 1999, anything with a .com behind it became grossly over-valued. I remember the phrases “paradigm-shift” and “things are different now”. Well, I can tell you they were not different. Fundamentals in investing matter.

In 1999, stocks that we know today like Microsoft and CISCO were bid up in price to phenomenal values. Microsoft took nearly 16 years for its price to recover from the 1999 highs. CISCO, which is nearly a 200 Billion Dollar company is still nearly -42% lower than the 1999 highs. Today many investors are throwing money blindly into investments they really know little about. Yes, we all want the next Google or Amazon, but the reality is, for every Amazon, there 100 companies that never make it.

If you wish to find out more about my process, feel free to drop me an email at paul@nextlevelbc.ca.

Paul Jackson, BA, CFP, CLU, RHU Certified Financial Planner – NextLevel Financial Ltd. Investment Fund Advisor – Investia Financial Services Inc

PAUL JACKSON

Paul Jackson is a year round resident of the North Shuswap. With 28 years as a Professional Financial Planner, Paul is well suited to help his clients with all of their Financial Planning needs. He uses a Model Portfolio approach to investment management and would love to discuss his process and track record with you!

⇒ Proven track record with Model Portfolio investing ⇒ Fee Based Advisor with a very reasonable fee structure ⇒ Independent (not tied to one institution) ⇒ Strong tax knowledge ⇒ Licensed in both BC and Alberta