Gary Golden, an advisor with Credential Financial Securities Inc. in Winnipeg, uses three rules of thumb when helping clients manage their money.

> Don’t let clients forget risk management. “You insure your car, your house and its contents,” he says. “Why aren’t you insuring your income with disability insurance?

“People don’t take their demise into consideration,” he adds, “because it’s probably one of the ugliest subjects they’ll ever think about.”

> Don’t ignore unregistered capital. “The three big piles of money in Canada are pension plans, RRSPs and government benefits,” he says. “People don’t think of unregistered capital. When I’m retired and getting my pension plan and RRSPs, where am I going to go to access capital without getting creamed with taxes? There could be a problem if everything you have is going to be fully exposed to taxation. I like to leave people’s options open.”

> Develop a distaste for the flavour of the day. “One of the biggest beefs I have is people who purchase funds based on the daily price movements,” he says. “You’re supposed to have a long-term perspective, not a five-minute perspective. Take a cue from the Canada Pension Plan Investment Board. Last year, it was 63% invested in stocks and 37% in everything else. The idea is [for clients’ portfolios] to grow like a pension plan, to emulate the biggest one around.” — GEOFF KIRBYSON