Worksheet Helps Investors Take Stock'

NOTE TO EDITORS: This is the third of six news releases provided by the Nova Scotia Securities Commission in advance of Investor Education Week, April 25-May 1.

Less experienced investors often don't know much about themselves as investors or their tolerance for investment risk until they visit a financial adviser.

A new worksheet now helps investors understand more about themselves, their finances, and their risk tolerance before that important meeting with an adviser. It also is an excellent way for those who invest on their own behalf to take a snapshot of their financial situation.

Financial advisers need to ask questions to understand the client's situation and goals. If the investor is unprepared for a question, he or she might struggle for an exact answer, leaving the adviser less than thoroughly briefed.

The worksheet, produced by the Canadian Securities Administrators (CSA), is a preparatory tool designed to help investors do some advance thinking.

The worksheet is a letter-size fold-over with four working pages. It asks the usual questions about assets, liabilities, income and expenses and financial objectives. It also provides some information through highlighted prompts designed to make the investor stop and think.

For example, one question asks how much time you might spend researching and monitoring investments. A coloured breakout box then notes that the less time you have to monitor investments, the less risk you will be comfortable with.

"It is intended to get people to think in more detail about their financial situations and how much risk they will be able to tolerate," said Nicholas Pittas, director of securities for the Nova Scotia Securities Commission.

The worksheet is user friendly, easy on the eyes and provides plenty of space for writing in figures and notes. It is not a long and daunting form and can be filled out in a few minutes or longer, depending on how much the person wants to think about his or her situation and plans for the future.

"It is designed as a universal starting point for average investors to assess their own financial affairs or to know more about themselves before they go to an adviser," said Mr. Pittas.

The worksheet is one of several new educational materials produced by CSA for Investor Education Week, April 25 to May 1. The others are brochures offering advice on buying mutual funds, the risks of exempt securities, and a poster providing an introductory guide to key types of securities.

This is the second annual Investor Education Week, designed to provide people with the tools needed to be aware and assess risks. CSA is a body comprising the 12 provincial and territorial securities regulators.

The worksheet is available at no charge from the Nova Scotia Securities Commission at 902-424-7768 or e-mailing [email protected] .

The Nova Scotia Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province.