Market Volatility: What should you do? Part II

By Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

The response to our previous newsletter on tips to manage market volatility was overwhelming. Thank you to everyone who sent their questions and feedback. The most common request was for more information on the tips we introduced last time. Below, we elaborate on some of the key points.
Staying invested. The knee-jerk reaction is to liquidate your investments to protect their current value. The logic to this argument is that we still do not know where the bottom is on the market slide. Yet, unless you’re intending to use your money now, these losses are not “real”, in the sense that they are only on paper. If you developed an appropriate financial plan and investment plan with your financial advisor, then the value of your investments should, given historical trends, be back to an acceptable level by the time you do need to use them. This is based, fundamentally, on your risk profile, and your investments should match that profile. If you feel that the changes in market value of your investments are greater than you can stomach, your investments may not match your actual risk profile and both should be re-evaluated.
It has been calculated that, in the wake of a bear market, sitting on the sidelines for just six months during the recovery could cost you as much as 29.9% in growth! For more information on these topics, check out the following articles from some of Canada’s leading investment companies:
Minimizing withdrawals. When you with draw money from investments that are down, you amplify the loss and hurt longer-term values. Imagine you have a TFSA with $50,000 investments. If this TFSA were to fall in value by 10%, to $45,000, it would take an 11% return to fully recover to $50,000. If, however, you withdrew an additional $5000 while the TFSA was down to $45,000, it would take 12.5%, not 11%, to recover that $5000. It would also take, not 22%, but 25% growth to return to $50,000! Not only does this delay the time it takes to recover the lost $5000, but impacts the compounded growth for years to come.
Using Balance Financial’s Three Bucket Retirement Income Strategy. The strategy was developed exactly for times like this and may help to protect your retirement income while investment values are lower. The Three Bucket Retirement Income Strategy incorporates the principles of the previous two strategies: staying invested as much as possible and minimizing withdrawals from your investments. The approach divides your retirement savings into three pools of money: Now, Soon and Later. Each pool, or bucket, has its own time horizon and risk profile, allowing you to remain invested in the markets (Later bucket) to maintain growth, while preserving your more immediate (two to three years) cash needs (Now bucket).
No matter what’s happening in your Later bucket, your available cash is not affected. Plus withdrawals do not impact the short or long-term growth of your investments.
Talking to a financial advisor. It’s in markets like these, and on days like today, that financial advisors show their true value. We remind you to remain committed to your financial plan and investment plan, and offer you opportunities to make the most of the current situation.

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Picture of Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

Scott founded Balance Financial in 2019, the culmination of a 15-year journey to provide accessible and customizable financial planning for clients. In his role as President and Principal Advisor, Scott develops business strategy for the company while managing his own practice. Working closely with his clients, Scott allows people to tell their story and write more chapters as they pave their financial paths together.

A former high school teacher and college instructor, Scott continues that passion for education by providing retirement workshops to the Federal and Provincial public service, as well as free public workshops to adults and teens.


Scott Boassaly



A former high school teacher and college Economics lecturer, Scott Boassaly has always valued education. This is further illustrated by his formal education. He holds a BA in History from Carleton University, a Bachelor of Education from The University of Ottawa, and an MBA from The University of Ottawa. This focus on education reveals itself in his approach to financial advice and in his commitment to offering free financial seminars to both adults and children. Celebrating his 20th anniversary as a wealth manager, Scott started his career at a large national firm where he quickly transitioned into management. Further industry experience was gained working with a reputable brokerage, then managing his own brokerage, Balance Financial, since 2019. Scott is the only certified responsible investment advisor in Ottawa and also holds the Real Wealth Manager designation.