VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2012) - While many British Columbians enjoy warmer temperatures than the rest of the country, it does not seem to calm their nerves when they invest. At a presentation entitled The Art of Investing held today at the Vancouver Art Gallery, Serge Pépin, Vice President, Investment Strategy, BMO Asset Management Inc., revealed that people living in British Columbia are the most emotional investors in Canada, with many unaware of what is in their portfolios or not putting enough money away for the future. On a positive note, almost 80 per cent hold some kind of investment.
During the presentation, Mr. Pépin revealed the following about B.C. investors:
- Almost half (47 per cent) say that emotion plays a role when making investment decisions, surpassing the national average of 41 per cent.
- Sixty-three per cent of B.C. investors have made an investment decision based solely on impulse.
- Almost two-thirds (61 per cent) report they are not always in total control of their emotions when investing.
- Anticipation, trust and fear are the emotions felt most intensely when deciding how to invest.
"Though we can't always help how we feel, it's important to keep our emotions in check when making decisions about investing," said Mr. Pépin. "The money you invest today will determine your ability to achieve your financial objectives in the future. Wise investing decisions based on a well thought-out strategy will allow you to properly save for retirement and plan for other important life goals."
In his presentation, Mr. Pépin also revealed that many British Columbians do not know how to make an investment and lack the confidence to do so:
- Forty-five per cent of British Columbians are not confident investors.
- Almost one-third (28 per cent) are not familiar with the companies in which they invest. Some are not even sure in what they have invested.
- Only 17 per cent conduct careful and extensive research before making investment decisions.
- Fifteen per cent have invested based solely on a company's name or logo.
Are British Columbians Investing Enough?
As to how much they are investing, 43 per cent of British Columbians do not believe they are investing enough and 21 per cent do not hold any investments at all. Respondents identified the following barriers:
- Not enough savings (83 per cent)
- Focussing on paying off debt (82 per cent)
- Not sure who to turn to for advice (76 per cent)
"Rather than investing with their hearts, or not investing at all, British Columbians should educate themselves on best practices and seek strategic advice that will allow them to build and manage their portfolios with confidence," advised Mr. Pépin. "If they don't do their due diligence, they could jeopardize their dream of a comfortable future."
Mr. Pépin's comments were based on the newly-released BMO Psychology of Investing Report that examines the mindset of Canadian investors. The inaugural report builds on the BMO Psychology of Spending Report released in September - part of a series of studies from BMO that examine the personal finance and investing behaviours among Canadians and the resulting effects.
As part of its ongoing commitment to 'Making Money Make Sense,' BMO has introduced various tools to help Canadians stay on top of their personal finances, including BMO by Appointment, BMO MoneyLogic, BMO SmartSteps, BMO SmartSteps for Parents and BMO SmartSteps for Business. Additionally, BMO recently launched a Financial Planning Website which enables Canadians to determine what steps to take today to reach their financial goals with confidence. It features a full range of online tools, including a Retirement Savings Calculator, Major Purchase Calculator, Education Savings Calculator, Cash Flow Worksheet and a Net Worth Worksheet.
Get the latest BMO press releases via Twitter by following @BMOmedia.
For more information, please visit www.bmo.com.
The survey results cited in the BMO Psychology of Investing Report are from online interviews with a random sample of 1,000 Canadians 18 years of age and older, conducted between November 6th and November 8th, 2012. A probability sample of this size would yield results accurate to ± 3.1 per cent, 19 times out of 20. The sample size among residents of British Columbia was n=175.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.