Keep it simple, age with ease

Mike Lynch

Occupation: Business adviser

Age: 63

Portfolio: Guaranteed variable annuity, Gammon Gold Inc., iShares MSCI BRIC ETF

his philosophy

As a founder of the Nova Scotia branch of the Canadian Association of Family Enterprises, small-business adviser Mike Lynch says he has learned "the importance of a sense of urgency" from his clients. "Business owners are eternal optimists," adds the 63-year-old from his home in Antigonish, N.S., adding that they always think they can retire on what they'll sell their business for. "But the best way to accumulate capital in the early stages is to buy high-quality equities that pay dividends."

Ages And Stages

The older one gets, the more sense simple makes when it comes to investments, he says. Lately he has moved some funds into a basic guaranteed variable annuity.

His New Discovery

Mr. Lynch is set to invest in IA Clarington Target CLICK funds. What attracted Mr. Lynch is that in addition to a principal guarantee, the funds lock in the highest month-end value reached, and this applies even if an investor buys into the fund after it reached its highest level.

The funds offer different maturity dates, allowing investors to pick one fund that ties into when they'll retire - or any other year in which they will want to access their capital.

He also likes the fact the Target CLICK fees start at 2.25 per cent and fall to 1 per cent by the end of the contract. "They're very clean, very conservative and very transparent."

Best Move

Given that running his own business takes up enough of his time, Mr. Lynch says running his own investments alongside a broker - spending all weekend inputting trades into Quicken - put his marriage at risk. That led him to hire a broker who put him into a wrap account with Assante Wealth Management. "When you use a broker, it's complicated," he says. "If you're not managing the broker, the broker will be managing you."

Worst Move

In the mid-nineties, Mr. Lynch bought some gold coins that could have turned into a disastrous investment, given that they arrived by post and, as he wasn't home, the mailman simply left them in his mailbox ... all $25,000 worth. Gold didn't move up as much as he'd thought, so he later sold them, making between 10 and 15 per cent. Not bad, but as he says: "The kicking starts when you think about how much the price of gold has gone up since then."

Advice

Look for transparency, Mr. Lynch says. By transparency, he means the ease with which investors can understand exactly what an investment is and what it entails. For instance, when he comes across a new product, he tries to look beyond the marketing nomenclature and catchy product names to find what generic, basic investment lies underneath, and then researches the appropriateness of that type of investment.

Want to share your strategies?

E-mail tony.martin@sympatico.ca