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www.insideHALTON.com | OAKVILLE BEAVER | Thursday, April 4, 2013 | 18 Assessing your investment risk and what tools to use Dollars & A Sense re risk assessment surveys useful or just a sales tool to motivate investers to complete a trade? Does the nancial consumer bene t from these surveys or do they just provide a false sense of security? A risk assessment survey asks questions that are meant to reveal how much investment risk a client should take. The use of such tools can be good and bad. In 2011, the Financial Services Authority (FSA), Britain's investment industry regulatory body, published a report on investor risk. It stated nine out of 11 risk assessment tools they examined had serious faults. We can bene t from this FSA report because there are no geographic boundaries to invest- ment survey to be useful. The rst and most obvious step is it must be neutral, carefully designed and extensively tested to ensure its accuracy as a measurement of risk. The second requirement is to have other measurements, including a discussion of risk. Measuring risk from several vantage points is Guest Contributor critical to achieving a reliable risk assessment. Our age, height, weight and the current temment risk and surveys that measure risk toler- perature is speci c. The process of measuring ance. risk, however, is complicated because there is To restate what has been mentioned, two of no measuring standard. the 11 risk assessment tools passed their testThat is why we have to carefully assess and ing. attempt to measure risk using several inputs. That dismal failing grade could be harmful The accepted rule of carpentry is "measure to anyone who has erroneously relied on a risk twice and cut once." With risk it can be said assessment resulting in an unsuitable invest- to measure several times and then continue ment or portfolio. measuring. Making a suitable investment requires the How much risk are you comfortable with? true understanding of the risk an invester is Often a couple will have different risk comboth willing and able to make. You might be fortable levels -- these should be understood willing to take on a certain amount of risk; and considered. however, you might not be capable of absorbWhat is your history of investing and how ing the potential loss that might occur. have you reacted to past market volatility? Two things must happen for a risk assessDid you buy high, panic and then sell low? If you purchased an investment now, what decline in value would be too uncomfortable? Do the arithmetic of investing. If you have a speci c nancial objective such as planning for retirement, what level of risk should you take in order to achieve a target reNotice of Liquor Licence turn that will allow you to reach your retirement goals? Application The risk discussion has to be how The following establishment has applied to the much you want to take on and how Alcohol and Gaming Commission of Ontario for a much risk you should take in order liquor licence under the Liquor Licence Act: to be successful. Application for a Sales Licence In that scenario, you balance the con icting risks of market volatility TURTLE JACK'S MUSKOKA GRILL with not achieving your nancial ob360 DUNDAS STREET EAST, UNIT B12 OAKVILLE (Indoor and outdoor area) jectives -- this is a common example of con icting risks. Any resident of the municipality may make a written That is why, as stated above, the submission as to whether the issuance of the licence is in the public interest having regard to the risk assessment needs to be a converneeds and wishes of the residents. Submissions sation. must be received no later than April 9, 2013. Please At the end of the day, there are include your name, address and telephone number. many varying inputs and preferences If a petition is submitted to the Commission, please that go into making the nal risk asidentify the designated contact person. Note: The sessment. AGCO gives the applicant copies of any objections. The risk conversation should conAnonymous objections are not considered. tinue into the future as circumstances The personal information gathered is collected and preferences may change. under the authority of the Liquor Licence Act. The If the markets do well and your inprincipal purpose of the collection is to assess vestments rise accordingly you might eligibility for the issuance of a liquor sales licence. be able to lower your investment risk Copies of all objections are given to the applicant. and still achieve your speci c nanThe information may also be disclosed pursuant cial goals. to the Freedom of Information and Protection of Privacy Act. Questions about this collection Using a risk assessment survey can should be directed to the Manager, Licensing and be useful, but be cautious and have a Registration, Alcohol and Gaming Commission of comprehensive discussion with your Ontario at the address, telephone numbers or e-mail adviser on all aspects of risk so you address listed below. can truly understand your risk tolerSubmissions to be sent to: Licensing and ance. This makes it much easier to Registration, Alcohol and Gaming Commission select suitable investments. of Ontario, 90 Sheppard Avenue East, Suite 200, -- Submitted by Peter Watson, MBA, Toronto, ON M2N 0A4. Tel: 416-326-8700 OR CFP , R.F .P ., CIM, FCSI., Toll-free in Ontario: 1-800-522-2876. Certi ed Financial Planner Fax: 416-326-5555. E-mail: licensing@agco.on.ca Peter Watson