Thursday, 9 October 2008

Session in Progress George addressing the members Ranee Mahalingam, Vice Chair presenting a memento to the speaker

Review 1

By Noel D’Souza, P.Eng.

On October 9th, the Scarborough Chapter of the PEO sponsored an Effective Wealth Management seminar for PEO members and their guests at the Holiday Inn Express in Scarborough . This seminar, presented by RBC Dominion Securities Investment Advisor George Rosati, P.Eng., MBA, was entitled “The Good… The Bad… and The Ugly”.

George opened the seminar by polling audience members about what they thought “Wealth Management” meant to them, and also asked for topics of particular interest given the recent events in the turbulent financial markets. He went on to highlight the various aspects of financial planning, and underscored the importance of having a financial plan in place rather than reacting emotionally to events as they occur.

Using a slides, George presented some guidelines regarding diversification, asset allocation and the investing time horizon, but wisely pointed out these are truly only general guidelines and that every individual’s or family’s situation is unique. He took the audience through the debate of active versus passive fund management, and again stressed that the choice was not black and white, but had different applications in different circumstances. He did encourage investors to be aware of the costs involved in financial advice and fund management, to ensure they were getting true value in each case.

Taking questions from the audience about the current financial crisis, George urged the audience to take charge of matters rather than worrying, and act to ensure their deposits are adequately covered by CDIC insurance at one or more institutions covered by CDIC. He advocated a “Dollar Cost Averaging” approach to the current market, and advised against an all-or-nothing approach when committing new funds to the market. And while engineers are often susceptible to getting bogged down in the details, George encouraged us to see the big picture.

The seminar was well organized and run, with plentiful refreshments and valuable information presented. I look forward to the next such event.

Review 2

By Bhadresh Modi, EIT

The Seminar on wealth management was very interesting. I think every engineer should have fundamental knowledge of financial management for managing his/her own assets. The weakest part of an engineer is that they do not manage their own assets well during their life and hence are not as wealthy compared to commercialist/account group when retirement comes, even though engineers fall in the high-income group.

The speaker, George Rosati, P.Eng., MBA, Investment Advisor, RBC Dominion Securities, tried his best during two hours of seminar time to teach the fundamental concept of wealth management and also answered correctly all the questions and queries put to him by members and their guests.

I would like to point out that when you take the advice of any bank financial manager it may be biased with respect to future risk involved and hence my advice is that as a client do not follow blindly. Do your own research and study, find the written matter on the subject and only follow if you feel comfortable.

I liked the various charts and graph presented, including a graph of the Canadian housing market, its rise/fall or bubbles, what is the financial bailout why it has occurred in USA, contribution of various country on world stock markets, strength of Canadian banks compared to USA banks, CDIC limits of $100,000, Management Expense Ratio in Canadian Mutual funds, the fact of 91% of mutual funds rate of returns are lower than rate of return of TSX, what should be the type of portfolio for various age groups, retirement planning, the relatedness of the Canadian stock market greatly on the resource sector and only partly on USA credit crunch, and the information on Tax Free Saving Account staring next year.

I like to advise that when you invest in the stock market look for at least a 5 to 10 year period and do not worry about fluctuations. I like the thinking of Warren Buffett when he purchases any stock in the market his real thought to buy ownership in that company and not for speculative trading like day traders.


When 6:00 p.m. to 8:00 p.m.
Where Holiday Inn Express Scarborough
50 Estate Drive, Scarborough, ON M1H 2Z1
Closest major intersection: Markham Rd. and Progress Ave.
TTC buses: 134 Progress, 102 Markham
Map Google Map
Registration Contact Piyush Patel, P.Eng.

First come first served. Priority will be given to Scarborough Chapter members, then other PEO members, guests and friends.
Cost Admission: Free
Light refreshments and snacks will be served.

The Good… The Bad… and The Ugly

Speaker: George Rosati, P. Eng., MBA, Investment Advisor, RBC Dominion Securities

The stability of our family depends upon our financial situation. Financial planning is an essential tool to plan the education of our children, quality of life and our own retirement. Financial planning requires a concerted effort by the financial advisor or the investor; otherwise we may find ourselves in a difficult situation. Retirement pension plans change regularly and it is necessary for us to be up to date with the changes to manage the latter part of our lives. George will help the engineers to plan the financial resources for our future well being.

Financial planning can be helpful for individuals who have not accumulated wealth, or are just starting to accumulate wealth. For the wealth management process to be effective, an individual must have already accumulated a significant amount of wealth.

The seminar consists of four main parts. The theme is generally focused on capital preservation and tax-efficiency.

1. The Components of Wealth Management

A brief overview of:

2. Investment Philosophy

A look at the good, the bad, and the ugly. Why 91% of money managers do not beat the index or the market, and how to stop the erosion of your money as a result of high investment fees.

3. Portfolio Construction

4. The need for a documented financial plan

Over 80% of Canadians do not have a documented financial plan. We look at how to develop a dynamic plan that changes with your life. What should be in it, who is qualified to develop one for you, and what are the benefits of having one?


George Rosati, P. Eng., MBA
Investment Advisor, RBC Dominion Securities

George began his career 15 years ago as an Electrical Engineer. He worked in the Aerospace and Energy industries before transitioning into Financial Services. His goal was to bridge the gap between the business and technical fields so in 1997 he pursued a Masters in Business Administration degree. He progressed into Senior Management roles before deciding to start a career in financial services. Today, George runs a financial advisory practice with RBC Dominion Securities. He is focused on providing ongoing trusted wealth management advice to engineers and their families.