Afraid Today's Scrambled Market Will Crack Your Retirement Nest Egg?



    Remaining in the market rather than getting out when times are tough will
    ultimately help Canadians achieve their retirement goals, says BMO

    BMO investment experts available to address:
    - What should investors do today in the midst of this market volatility?
    - Will this market downturn affect retirement nest eggs?
    - What to consider before making an RSP contribution this year
    - How to protect your portfolio from market volatility

    TORONTO, Jan. 25 /CNW/ - Canadian investors might be feeling queasy as a
result of the rollercoaster performance of the stock market, but before you
think of jumping off the ride, remember that investing, especially for
retirement, is a long-term discipline.

    WHAT:
    Developing a financial plan and a well-balanced portfolio using the
principles of asset allocation and diversification is the best defence against
market volatility. However, according to a BMO/Ipsos Reid study, more than
half (55%) of Canadians aged 45 to 60 indicated that they either don't have a
financial plan or it resides in their head. In addition, almost half of
respondents (48%) believed their RSP is their financial plan. With this lack
of planning, some Canadians could be in for a rough ride.

    WHY:
    Stock markets have historically rebounded from their corrections over
time. For example, in the final months of 1987, the S&P/TSX Index fell by
about 25 per cent, and all of that loss was recovered in just over a year. In
September 2000, the S&P/TSX was at 11,388 and dropped to 5,695 in October
2002. It is now over 12,000.
    Remaining in the market rather than getting out when times are tough or
attempting to capitalize on an upswing, will ultimately help Canadians achieve
their retirement goals. Trying to time the market can be costly - only a few
days out of the market may have a dramatic impact on your long-term growth.
For example, take an investment of $10,000 - if it was fully invested for 15
years it would now be worth $55,570. On the other hand, if you missed the top
60 days in the market, it would only be worth $10,593.
    No one can predict when the market will go up or down, but a financial
planner can provide advice on how to protect your portfolio against short-term
volatility and help take the emotion out of investing.

    WHO:
    BMO Financial Group has national and regional experts available to speak
about what investors should be doing this RSP season in the midst of the
current volatility.





For further information:

For further information: To arrange an interview, please contact: JoAnne
Hayes, Toronto, joanne.hayes@bmo.com, (416) 867-3996; Laurie Grant, Vancouver,
laurie.grant@bmo.com, (604) 665-7596; Lucie Gosselin, Montréal,
lucie.gosselin@bmo.com, (514) 877-1101; Internet: www.bmo.com


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