Three tips to becoming a better investor this fall

By

October marks Investor Education Month, a time when Canadians are reminded to strengthen their investment literacy. Whether you are a new or experienced investor, refreshing yourself with our top tips and the fundamentals of wise investing can help you avoid poor performance, common mistakes and fraud.

  1. Consider where you are getting your investing advice
    Investors today are inundated with news, speculation and excitement across traditional, social and digital channels on what to invest in or how to invest. Before putting your money into any recommended investment or changing your current investing approach, consider the qualifications and knowledge of those providing the recommendations. One of the greatest things you can do as an investor is to stay focused on your investing plan. Use diligent research into the fundamentals of the company you are planning to invest in, including its profitability, debt obligations and return on equity. Understanding the fundamentals and relying on information from qualified experts using publicly available data can help you make a more informed decision and avoid fraud.
  2. Pay yourself first
    Investing consistently over time, regardless of whether the share price of an investment is up or down, is one of the best ways to reduce your average cost per share over time. Avoid the costly mistake of trying to time the market or not investing at all. Automating your contributions to your investment accounts is an easy way to remove the decision of when to invest and turn investing into an ongoing and sustainable habit. Some trading platforms may even allow you to set rules for automatically purchasing investments once your contributions reach your accounts.
  3. Reinvest your dividends
    Some single stocks and investment funds offer dividends to their shareholders. Dividends are a share of a company’s profits paid to shareholders either monthly, quarterly or annually based on the number of shares they hold. Investors wanting to maximize the compounding effect of their investments can apply for a dividend reinvestment plan (DRIP) with the financial institution, firm or trading platform they use, for any dividend-producing investments in their portfolio. With a DRIP in place, any dividends received from an investment equal to or greater than the investment’s share price will automatically purchase more shares for you at no extra cost. This reduces the cost of placing trades and further compounds your investment earnings over time.

Improving your investment knowledge on an ongoing basis can play a significant part in helping you reach your financial goals and avoid fraudulent investment scams. Check our Fraudster’s playbook to learn more about avoiding fraudulent investment scams.

Artificial intelligence: What to consider before using it for investing

By

Artificial intelligence (AI) has gained significant traction across various industries, including financial markets, promising increased efficiency and data analyzation. AI has also found a prominent role in our day-to-day lives, being used to enhance search engines capabilities and in AI-enhanced chat bots that deliver answers to questions or requests based on data sets that they are trained on.

With the growing interest in AI, some investors are looking to AI’s evolving technology for investing guidance. Before you use AI tools for investing, it’s important to understand its limitations.

Here are some things every investor should consider before investing with the help of AI:

AI is not a replacement for researching investments

While AI is a ground breaking technology, it does not replace the critical step of researching and qualifying an investment. AI chatbots like ChatGPT, OpenAI and Chatsonic are classified as large language models (LLM). This means they process vast amounts of select data sets from the internet and provide a response to your query based on probably word and phrase associations.

LLM AI relies heavily on historical data and may not provide real-time financial and investment analysis or guidance. Understanding past performance can be helpful information but it is never a guarantee of future performance.

Investors should take the time to thoroughly review the company they plan to invest in including the latest information and fundamentals like their business plan, operational information and milestones.

 

AI lacks human intelligence or the experience of registered investment professionals

Everyone has a unique investing journey. Constructing your investment portfolio comprises understanding your financial goals, time horizon and your risk tolerance. AI investing bots lack the emotional intelligence and human intuition to factor these important elements into their recommendations when asked.

Based on how the AI chatbot was coded and the types of data sets it was trained on to source answers, biases could also be present in its responses, favouring a particular approach or recommending only a limited number of investments to inquiring investors. Investors should look to registered financial advisors to receive a comprehensive and personalized assessment, and investment services when needed.

 

Be wary of AI chatbots that direct you to invest on a specific platform

With the growing excitement around the technology, fraudsters promote AI investing bots and apps they say can provide guaranteed or high returns with little to no risk to investors. Be mindful that these types of advertisements are a common red flag of fraud.

One of the best ways to avoid fraud is to confirm that the trading platform you plan to use is registered with the securities regulator in the province or territory you reside. Registration confirms that the individual or firm is properly qualified and comply with investor protection laws.

You can check the registration of any individual, firm or trading platform on our Check registration page.

Advancements in AI has undoubtedly transformed how we obtain, analyze and use information. While AI can provide helpful investment ideas, when it comes to making investment decisions, there is no replacement for the qualified services of registered investment professionals and your thorough research of investments to ensure they align to your goals and risk tolerance.

Treat using AI for investing as a helpful tool but not a substitute for due diligence.

Know your limit and invest within it: Understanding your risk tolerance when investing

By

Understanding the level of risk you are willing and able to take with your investments is critical to your success as an investor. All investments come with some degree of risk; the higher the potential return of the investment, the higher the risk that you may lose some or all of your money. Understanding your personal risk tolerance and factoring it into your investment decisions can help you make suitable investments.

How can I determine my risk tolerance?

Risk tolerance is a measure of your ability and willingness to take risks with your money, with the understanding that the performance of your investments may not achieve the expected results. Whether you started investing in your 20s or nearing retirement, everyone has a different risk tolerance that gradually changes over time as they enter new life stages. Your personal preferences also change as you approach your financial goals.

When working with a registered financial advisor or a robo-advisor, a Know Your Client (KYC) form must be filled out before you begin investing. KYC forms play an important part in your investing journey by aiding financial advisors and robo-advisor services to better understand your risk appetite and the suitability of recommended investments. If you are planning to do self-directed investing, it is essential to personally assess your risk tolerance before starting. One tool that is available to help you is the Check Your Risk Tolerance quiz.

Tips to keep your investment portfolio in check with your risk tolerance

Whether you are a new or experienced investor, continually paying attention to and considering your risk tolerance is essential for long-term investing success.

1) Reassess your risk tolerance annually: Your life changes over time and so does the level of risk you want to be exposed to. Consider filling out a new KYC form with your advisor, retaking the CheckFirst quiz every year, or if you reach a new life stage, like getting married or nearing retirement.

2) Be honest with yourself: Investing is a personal journey and requires you to be open and honest with yourself and the investment professionals you work with on the level of risk you are willing to take. For instance, consider if you were to see a hypothetical 50% drop in your investment portfolio value. Reflect on your emotional and financial state if that were to happen, and from this place, you will be able to more accurately answer KYC forms and thoughtfully consider high-risk investments.

3) Think about your goals: The length of time you expect to hold your investments before withdrawing funds can be an important factor in determining the level of risk you take. Generally, the longer your time horizon, the more risk you can take, as you will have more time to recover if your investment underperforms for a period. The shorter the timeframe, the less risk you may want to take to preserve what you have invested.

4) Adjust your portfolio if it no longer falls within your risk tolerance: As your risk tolerance changes over time, your investments should re-align with it. If you are working with an advisor they can help adjust your portfolio to better represent your risk level. If you are investing on your own, consider how you can slowly adjust the level of risk within your portfolio by using appropriate risk-aligned investments.

Investing without considering your risk tolerance can lead to poor performance and ill-suited investments for your financial goals. By assessing your risk appetite throughout your investing journey, you can confidently build a portfolio to best meet your financial goals and comfort level.

Thinking ahead: Understanding the benefits of using a certified financial planner

By

For new and experienced investors, your financial plan is one of the most important elements of your investing journey. A financial plan is a document that outlines your current financial circumstances, your short, medium and long-term goals and the steps you will take to accomplish them. A financial plan can also help you plan for and manage risks, including health or disability needs, job loss, and debt repayment.

Thoroughly evaluating your income, expenditures, savings, and debts and mapping out your expectations for the future is essential to constructing a comprehensive and realistic financial plan. While creating a financial plan can be done on your own, many seek out the expertise of a certified financial planner.

A certified financial planner has a thorough knowledge of personal finances and can help clients of all ages develop a plan to reach their goals and maximize the efficiency of their assets.

Let’s explore common scenarios where using the services of a certified financial planner might be right for you.

Not knowing where to start

Drafting your financial plan can feel daunting, and relying on a trusted fiduciary (someone obligated to work in your best interest), like a financial planner, can help you get started. Financial planners are trained to develop a diversified and suitable investment portfolio; provide retirement, estate and tax planning services, and insurance and debt management recommendations. Financial planners can get you started on the right foot by helping you better understand where you are currently and the optimal way to get to your financial goals while outlining additional factors in your planning you may not have considered.

Dealing with significant life events

Earning a promotion at work, getting married or divorced, and receiving an unexpected inheritance from a loved one are significant life events which can impact your finances and future goals. A financial planner can help you assess the changes in your life and begin charting out a plan of action that allows you to best meet your financial goals under your new personal and financial circumstances.

Preparing for retirement

Saving for retirement is an important goal for many Canadians. Knowing approximately how much you and your spouse will need in 10-20-30 years can be challenging to determine and even more so if you plan to retire early or with a desired retirement income. Financial planners can take a detailed account of your assets, including real estate, investments, debts, savings, work pensions and access to government benefits like the Canadian Pension Plan, Old Age Security, and the Guaranteed Income Supplement to formulate a comprehensive financial plan which includes recommended withdrawal limits during retirement to ensure your nest egg lasts through your golden years.

Having a sound financial plan can play a big part in helping you reach your goals. Whether you want to focus on a specific area of your life, like investment planning or simply want a new perspective from someone with the knowledge, skills, expertise and ethical obligations, a financial planner can be a valuable partner in your financial planning journey.

To learn more about certified financial planners and how to find a financial planner for your needs, visit FP Canada.

Saving and investing towards your first home with the new Tax-free first home savings account (FHSA)

By

In a January 2023 poll conducted by The Harris Poll on behalf of NerdWallet, nearly two-thirds of Canadians (67%) listed owning a home as a priority. For those with the financial goal of buying their first home, the Canadian government introduced the Tax-free first home savings account (FHSA) on April 1, 2023, to help Canadians over 18 save and invest towards home ownership.

The FHSA is a registered plan that allows you to save and invest up to $40,000 tax-free toward your first home purchase. Learn what you should consider before opening an FHSA account.

1) The FHSA offers the best perks of the RRSP and TFSA

The FHSA takes the best benefits of a Registered retirement savings plan (RRSP) and a Tax-free savings account (TFSA). Your contributions to your FHSA within a particular calendar year will also reduce your taxable income when you file your tax return. Unlike RRSPs, where your withdrawals are taxed as income, withdrawals from your FHSA to purchase your first home are tax-free, including all the investment income you may have generated in the account, like a TFSA. This allows you to maximize your savings towards your first home purchase while minimizing income tax.

2) The FHSA has annual contribution limits and qualifying withdrawals

For those wanting to use this newly registered account, the Government of Canada imposed limitations on how much you can save and invest in your FHSA before incurring penalties. Starting in 2023, Canadians can contribute up to $8000 in their FHSA yearly, with any unused contribution amounts carried forward to a max of $8000. Over-contributing to your FHSA will incur a 1% tax on the over-contributed amount each month unless brought below contribution limits.

To make a qualified tax-free withdrawal or series of withdrawals, you must be a first-time home buyer when you make the withdrawal(s). To qualify as a first-time home buyer, you must not have lived in a home you owned at any time during the part of the calendar year before the withdrawal is made or at any time in the preceding four calendar years. Any non-home related purchases may result in withdrawals being treated as taxable income.

3) You can combine your FHSA savings with the Home buyer’s plan

Before the FHSA was introduced, Canadians could use the Home buyers plan (HBP) to pay for a down payment. The HBP allows you to take up to $35,000 from your RRSP without taxation for your first home purchase. Any amount withdrawn through an HBP must be paid back to the RRSP within fifteen years or you lose the contribution amount from your RRSP and it is treated as taxable income. Combining the use of both accounts, potentially gives you access up to $75,000 in savings and investments towards your home purchase.

Saving and investing toward your first home purchase can be challenging, but leveraging the unique benefits offered by the newly introduced FHSA can help you reach your goal quicker and more efficiently than any other registered plan or account currently available.

Kicking off the new year with resolutions to strengthen your financial fitness

By

For many, the new year is a time for personal reflection and goal setting. These goals or resolutions could be to hit the gym more frequently or even read a new book every month. While these are admirable activities, the new year is also a great time for considering your wealth-building journey and setting mid and long-term financial goals. Learn four actions you can take to become more financially fit in 2023:

1) Pay down your debt

Consumer debt is a challenging burden that limits not only the money you can put towards investing for future goals but also limits your ability to afford the day-to-day cost of living. One of the best steps you can take is to develop a repayment plan for your credit card or other kinds of debt. Credit cards have an average interest rate of 19.99% (the annual percentage calculated daily and charged on any balances carried from month to month) meaning debt can quickly grow out of control if you let it. Paying down your debt every month allows more of your future earnings to be used elsewhere.

2) Create a rainy day fund

If the pandemic has reminded us of anything, it’s that the unexpected can happen and the better prepared we are, the better we can weather the storm. From your vehicle needing an unforeseen fix to an emergency home repair, creating a savings account or high-interest savings account to cover the curveballs life throws at you can be a game changer for your wealth-building journey. Slowly building up an emergency fund, equivalent to 3-6 months of income, can allow you to dedicate a larger portion of your money to investing while giving you the confidence that you won’t have to sell your investments early to cover an unexpected cost. Starting with just $25 a paycheck can net you $600 in emergency savings in a year.

3)Take advantage of your employer’s group RRSP plan

Thinking about something far off – like retirement – can feel daunting, but the earlier you start saving and investing for your golden years, the bigger the nest egg you will create for yourself. If your employer offers a voluntary group registered retirement savings plan, you can start investing for your retirement every month, and also take advantage of group plan benefits like investments with lower-cost fees. You may even be able to benefit from a match savings program in which your employer will also contribute to your plan. Once you enroll in your company’s program, you can sign up for automatic payroll deduction and take the guesswork out of routinely saving for your retirement years.

4) Invest in yourself before you invest your money

Much like physical exercise, the more you train yourself to be financially fit, the better success you will have in developing positive habits with your money and investing toward your long-term goals. Look for opportunities to strengthen your knowledge of money management and investing with credible and unbiased resources. The Financial Consumer Agency of Canada has excellent information on debt and borrowing, managing your money and even mortgage calculators. Want to learn more about investing? Visit CheckFirst.ca, brought to you by the Alberta Securities Commission to access unbiased information, tools and resources to help you learn to invest and avoid scams. You can even attend one of the many free programs on investing held throughout the province all year long, both online and in person.

The new year always brings excitement and the push to learn and advance. As you build out your areas for growth in 2023, consider including a few financial resolutions to help you spend consciously, invest wisely, and reach your financial goals today and for many years to come.

 

Investing smaller amounts over time or single lump sums: Understanding what approach is right for you.

By

When it comes to investing, one of the first questions many consider is whether it’s more beneficial to invest frequently in smaller amounts or single large sums. By understanding both strategies and their pros and cons, you can find an approach that works for you.

Dollar-cost averaging or DCA, is an investment strategy where you invest the same amount of money at regular intervals to reduce the overall impact of price volatility of the investment and lower the average cost per share. Regardless of the investment’s price, investors following the DCA approach will buy shares regardless of how the market or their investment is performing at that point in time.

Alternatively, lump sum investing involves taking all or a significant portion of your investable cash, and investing it all at once. It’s about putting your money to work as soon as possible and relying on compounding growth over the long term.

Let’s explore the benefits of both approaches:

Why dollar cost averaging might be right for you

It’s a way to get started

The process of just starting to invest can seem insurmountable and for many the thought that they do not have enough to make a difference in the long term can have them avoid the markets all together. Investing smaller amounts over a set period of time can be a good strategy to overcome this obstacle and build the assets you need to reach your financial goals without large sums of money.

Less guesswork

Contrary to lump sum investing, dollar cost averaging can help take some of the emotions out of investing by having you develop the habit of contributing consistently to your investments no matter what is happening in the market. This approach also helps you avoid the costly pitfall of trying to time the market in the attempt to chase greater returns.

Automation

Using the DCA approach allows you to integrate your chosen investment amount into your budget, strengthening the routine of investing on a continual basis. Another benefit is that you can automate the deposit of funds into your investment account and instruct your brokerage firm or adviser to invest the amount automatically.

Why lump sum investing might be right for you

Reduces chances of spending the money elsewhere

For some, it may be hard to dedicate money to their investments on a routine basis. Additionally, there may be temptation to spend the money elsewhere and forgo investing all together. By deploying a lump sum investment approach you avoid these risks and put your money to work immediately.

Decreased Costs

Brokerages and financial institutions often charge a fee for placing trades which can add up if investing using the DCA strategy. Lump sum investing doesn’t have the trading and transactions costs that can build up over time, helping to ensure more of your money is invested rather than lost to fees. It’s a good idea to review fees for brokerage firms and financial institutions before opening an investing account to ensure you work with one that has a fee structure that works best for you.

Dollar-cost averaging and lump sum investing both have their benefits and drawbacks. While it may feel like you need to choose one strategy over another, you can deploy a blended strategy. Commonly, wise investors will invest on a scheduled basis while also investing some or all of larger sums they may receive, like annual bonuses.

Regardless of the frequency and amount you decide to invest, focusing on your long-term financial goals and developing a dedicated approach can help set you up for success on your investment journey.

Achieving your short-term goals with high-interest savings accounts and guaranteed investment certificates

By

Thoughtful financial planning is what will determine your success as an investor. A good rule of thumb when planning is to organize your financial goals into three planning time horizons. These horizons typically include short-term goals that you want to achieve in the next six months to five years, medium-term goals that you want to achieve in the next five to ten years and long-term goals that you want to achieve in ten years or more. Investors often use a variety of different investments for medium and long-term goals because they have a longer period of time to recover from potential downturns before needing their money. When looking at short-term goals, where you may need to withdraw sooner and cannot afford to lose money on riskier investments, there are a couple of options to consider.

Understanding high-interest savings accounts (HISA) and Guaranteed Investment Certificates (GICs)

Short-term goals might include saving for a down payment on a new car you want in a few years, an exciting trip to Hawaii or even establishing an emergency fund. Regardless of your short-term goals, HISAs and GICs enable you to generate returns on your principal without exposing your money to the risk of loss.

As the name implies, HISAs are savings accounts that generally offer higher interest rates than traditional savings accounts. Whereas a normal savings account may have an interest rate of approximately 0.5-0.8 per cent, a HISA may have an interest rate of 1.5 to 2.25 per cent. This may not sound like much of a difference, but if you saved $10,000 in a savings account with a 0.8 per cent return and another $10,000 in a HISA offering 2.25 per cent, after five years your HISA would have generated a whopping $770 more than the traditional savings account.

GICs are another avenue for investors to save for short-term goals. By purchasing a GIC, you are locking away your money for a set amount of time to receive either a fixed or variable interest rate. While these rates can range from approximately 1.5-5.00 per cent, depending on how long of a term you select, the money becomes inaccessible until the term finishes. If you need the money sooner, you will often need to give advance notice and pay a penalty that can severely negate any returns you would have made.

What should you consider before using a HISA or GIC?

With guaranteed returns, it may seem like HISAs and GICs are the perfect investment, but there are things to consider:

1) Open vs Locked-in: HISAs allow you to access your money when needed, whereas GICs have your money locked in. Make sure you assess whether the liquidity of your money is important. For something like an emergency fund, you want to make sure you have immediate access.

2) Fluctuating interest rates: During times of high inflation like we are currently seeing, the Bank of Canada increases interest rates financial institutions can offer to incentivize Canadians to spend less and save more. If inflation decreases in the market, you can expect interest rates to lower on GICs and HISAs.

3) Neither are ideal for medium to long-term goals: While they are less risky than other types of investments, HISAs and GICs interest rates rarely surpass inflation (the yearly increase in the cost of goods and services). So while they are ideal for short-term goals, the purchasing power of your money will diminish over the medium and long term by using HISAs or GICs exclusively.

HISAs and GICs can be powerful tools in helping you reach your short-term goals. By considering when you need to utilize the money and how readily you will need access to it, you can choose the suitable one for you.

 

Investing during uncertain times and high inflation

By

For the past few decades the Canadian economy has experienced exceptionally low inflation rates ranging from one to three per cent. Unfortunately, Canadians today are challenged with a 30-year high inflation rate of 6.8%, with expectations that it will remain high through 2023. With rising inflation rates, how does this impact your income and investments? And what should you do?

What is inflation?

Inflation is a measurement of the increase in the cost of goods and services over time, which in turn impacts the purchasing power of your money. For example, an apple today could cost you $1, but the following year it could be priced at $1.07. In Canada, inflation is measured using the Consumer Price Index, which tracks the increase in the prices of goods and services across eight major categories. From April 2021 to April 2022, gasoline, food and shelter have all seen inflated prices that are more than double the Bank of Canada’s (BoC) benchmark goal of three per cent maximum. These rising prices mean that the quality of life for those with low, stagnant and fixed incomes will be significantly impacted, consumers will afford less goods and services, and businesses may generate lower profits. To learn more about inflation, please visit the Bank of Canada.

Why is inflation rising in Canada?

Inflation in Canada has been greatly impacted by both national and international pressures, such as:

  • record low-interest rates
  • government’s pandemic response to stimulate the economy
  • massive disruptions in the global supply chain
  • and the ongoing war in Ukraine driving up commodity prices

To slow down and reduce inflation, the BoC has begun increasing interest rates in phases, which discourages consumers and businesses from borrowing money and spending. While these increases put added pressure on businesses and families in the short term, if implemented correctly these can bring down inflation and stabilize markets too.

Investing during high inflation

During times of high inflation and uncertain global markets, it is not uncommon to feel anxious as you watch interest rates rise and some or all of your investments fall. Investors who have more experience and can tolerate more risk with their money may look for opportunities to capitalize on certain industries or investments that have outperformed during periods of high inflation. It is worth noting that the past performance of any investment is not an indicator of future performance. By attempting to change your portfolio to capitalize on different economic situations, you are exposing yourself to the risk of trying to time the market, which more often than not will have you underperform average market returns.

During bear markets (when markets decline by more than 20%), it is important to recognize how you may be feeling about your portfolio and revisit your financial plan and investments. If you work with a financial advisor, you may want to arrange a meeting with them to discuss the long-term view of your investments and how they are tracking towards your financial goals for peace of mind. For those without an advisor, remember that periods of high inflation may be temporary. Higher interest rates and recovering global economies may lessen the severity of inflation quicker than you think. Before you take any action, consider the time horizon of your investments and their underlying fundamentals. If you need more help assessing the long-term suitability of your investment portfolio and financial plan, you may want to talk to a financial planner or a registered financial advisor.

Without question, Canadians are facing challenging times. When it comes to your investments, stay focused on your financial goals and avoid the noise in the news and media. By maintaining a long-term view and a diversified investment portfolio aligned to your risk tolerance and goals, you can weather the storms of uncertain markets.

A trusted contact person: Enhancing your financial protection as you age

By

For those that invest with a financial institution or firm, you now have the ability to provide your registered advisor with a contact person that you trust. This person can play an important role in protecting your financial assets in certain circumstances.

As of December 31, 2021, advisors are required to take reasonable steps to obtain the name of someone you would like to have as your Trusted Contact Person (TCP), should they suspect you are experiencing financial exploitation or diminished mental capacity.

What is a Trusted Contact Person?

As you age, you may experience a decline in your health and cognitive abilities due to medical issues, pre-existing conditions or the natural aging process. In these circumstances, you may become more reliant on others in making financial decisions, potentially exposing you to financial abuse and fraud by those who do not have your best interests at heart.

To help safeguard potentially vulnerable clients from financial abuse and exploitation, the Canadian Securities Administrators, of which the Alberta Securities Commission is a member, introduced the TCP. A TCP is someone you can have listed on your account informing your advisor of who you trust and who they can contact in limited circumstances. This could include:

  • If you are unable to be reached
  • If your advisor has concerns you are vulnerable and being financially exploited
  • If you are having a health issue and your advisor needs to confirm your wellbeing
  • If your advisor needs confirmation of your legal representative

For example, your advisor may contact your TCP when they cannot reach you because you have taken an extended vacation and forgot to inform them. Or, in more sensitive situations, your advisor may contact your TCP to ensure the validity of a request that they believe is out of character.

What can and can’t my Trusted Contact Person do?

A TCP’s sole purpose is to help safeguard your financial assets by being an additional resource to help your advisor make decisions that best protect your account. Your TCP:

  • cannot authorize transactions on your behalf
  • cannot make decisions on your behalf
  • will not be given access to your detailed account information

Who should be your Trusted Contact Person?

A TCP should be a mature family member or friend who you trust, and you should feel comfortable that they can handle difficult conversations about your personal situation if they arise. Consider choosing someone you know will protect your interests, is familiar with your support network, and is not typically involved in your financial decisions. You should also ensure the person you select agrees to take on the role and is comfortable talking to your advisor.

In recognition of June Senior’s Month and World Elder Abuse Awareness Day (June 15), the Alberta Securities Commission (ASC) reminds older Albertans to work with your advisor to put a TCP in place. In a recent study conducted by the ASC, nearly 60% of Albertans aged 65 and over were approached with what they felt was a possibly fraudulent investment. While naming a TCP on your account is optional and not a legal process, it can provide you valuable peace of mind knowing that your advisor has someone you trust to help safeguard your financial assets now and in the future.