GOLD BUGS & Blueberry Christmas Pudding

THE GOLDEN YEARS GOLD BUG

In 1996 I had a call from a retired client who was laying on the beach in Florida with a good friend of hers who was making (on paper) a bundle on Bre-X. Her friend's broker had just called her and advised her to take a position on (we'll call it) ABC Gold, which was destined to be the next Bre-X.

My client instructed me to purchase 10,000 shares of ABC Gold which was trading around $10.00 ... in her RRIF account.

I reminded this client that her investment objectives were income and growth and that taking a position as requested was inconsistent with her objectives and her stated risk tolerance.

She then asked me, "what if you are wrong?".

I replied that I required a letter which was to be signed by both her and her husband which clearly stated that I had recommended that they NOT make this purchase due to the risk, and that it was totally inconsistent with their IPS and recommended asset mix, and that it was to clearly state that this was an unsolicited trade. AND, that as her advisor I would only fill 1,000 shares ... not the requested 10,000 shares.

My client composed the letter, had it signed by both parties and faxed it to my office at which time I entered a trade for 1,000 shares (not 10,000) which was filled around $10.00.

Three months later, the CEO of ABC Gold was brought up on fraud charges and it subsequently went the way of the dinosaurs. Turned out that it really was just like Bre-X.

My client promptly thanked me for only exposing her to a $10,000 loss as the alternative ($100,000) might have been life altering. She is still a client.

By the way, her friend and her broker did not cash in her fortune on Bre-X and subsequently watched $1,500,000 go to zeroooooo. And, her 10,000 shares of ABC Gold (@ $10./sh) ... well, she doesn't spend as much time in Florida anymore. The good news, she wasn't totally wiped out and she has a good dental plan.

Remember, in the world of highly speculative equities, know your risk tolerance, know your investment objectives (income, preservation, growth) and know where the 'edge' is.

On a totally different note, this may be cheating, but I had a tonne of comments sent to me last year and this Christmas recipe was a huge hit!

So, I'm sending it again just in case you forgot about it.

I have to remind you that the following recipe is so simple that our son Connor (aka Rocky) made up several batches a four years ago (he was 14) for us to hand out for Christmas.
This incredible Blueberry Christmas Pudding recipe really is, incredible! This recipe has been a Christmas delight in our family for years. The traditional Christmas pudding has those black currents and fruit rinds and candied cherries in it (yeeuck!) and I just found myself passing on the pudding
and then doubling up on the ... butter cream sauce. (teeheeeheehee)

So, the following recipe is recited verbatim from Mom's kitchen (still working on the
butter tart recipe) and you might want to print this off because this is truly a 'keeper'.

Mom's Blueberry Christmas Pudding
(complete with butter cream sauce)
Here it goes ...
1/ PLACE IN BOWL - 11 ounces of frozen blueberries
2/ SIFT TOGETHER
- 2 cups of all purpose flour
- 1 tsp soda / 2 tsp cinnamon/ 1/2 tsp salt

Okay, okay everything seems pretty quick and easy so far mom ...
3/ COMBINE IN A LARGE MEASURING CUP (or large bowl)
- 1 cup of boiling water
- 1 cup of molasses - "NOT BLACKSTRAP!" (use 'fancy' ie. Crosby or Grandma)
- 1/4 cup of canola oil
- 1/2 tsp of vanilla
DIRECTIONS:
Separate the blueberries in the bowl if frozen together
SIFT dry ingredients over the berries and toss lightly
Make a 'well' in the centre of the the berries and pour in the wet ingredients

We're almost done!
Spoon the mixture into a 2 quart mould (or soup tins) that has been greased, leaving about 1"-2" at the top for expansion
Cover the mould (tins) with foil and set on a rack in a large kettle/baking pan (must have a lid)
Add boiling water 1/2 way up the outside of the mould (tins)
Pop the lid on the kettle and steam at SIMMER for up to 3 hours, depending on the size.

THAT'S IT!
OR IS IT?

Everbody knows that Christmas pudding just isn't Christmas pudding if it doesn't have the buttery cream sauce poured over the top of it, eh? So here is the recipe for ...

THE BUTTERY CREAM SAUCE
1/2 cup of ... butter
1/2 cup of ... cre ... crea ... cream!
1 full cup of ... brown sugar
1 teaspoon of vanilla
I am sure that at this point you all realize that the only goodness in this recipe (aside from the vanilla?) is certainly in the flavour. But ... if you're not planning on making this a staple in your everyday diet, why not indulge?

Heat the butter and cream to a simmer
Stir in the sugar
Simmer and stir occassionally for about 10 minutes
Remove from the heat and stir in vanilla.

Pour over individual serving of hot pudding.

WOW! Now if you want to try a Christmas dessert that is sure to be a winner, why not give this a whirl? You can make it up well ahead of time and toss in the freezer. In fact, I find that if it has had some time to set that it tastes even better. (the anticipation might be an influencing factor)

A big huge thanks to my mom (Elaine) for submitting this recipe for all to enjoy. "Thanks Mom".

Only nine days 'til Christmas so if you haven't started your shopping yet ... chances are I'll see you at the mall!

All the best!

Jeff & Beverley

RULE OF 72 - Steak & Red Onion Marmalade, Grilled Asparagus, Mom's Maple Salad Dressing

I know, I know ... it's been a while since our last post and for that I can not apologize enough. Many of you have a craving for the basic investment advice that we post here on DIGestingINvesting, and many of you have a craving for the incredibly easy and healthy recipes that we strive to provide. And when I leave a big gaping three month interval between these posts, I understand that some of you begin to develop that empty feeling. Well, we'll try real hard not leave you hanging again as we ramp up into a regular routine again.

Our last post provided a recipe for 'Great Greek Potatoes'. Given the financial chaos that Greece has been enduring recently, I have to wonder if this recipe hasn't given a case of indigestion in recent months.

The RULE OF 72

Though I have referred to this commonly used 'rule of thumb' in one or two previous posts, I can not state enough the importance of understanding why this is so important to us. As a seasoned advisor I often refer to the RULE OF 72 to quickly determine a mental calculation.

As we all know the investment world is kinda like the legal world. The common use of acronyms and cinnamons ... err, synonyms, creating a language filled with jargon that makes our heads spin. ETFs, MERs, ROIs, ROEs, RORs, RRRs, SOLs and a thousand more are followed by GDPs, Yields, Coupon Rates, Overnight Rates, Peg Rates, Book Values and a thousand more of these. In fact, over the years I have concluded that the investment business prefers that the investing public just not understand what the heck their talking about. So, we can be value investors or growth investors, bears or bulls, quantatative, fundamental or technical, but at the end of the day, we just want a vague idea of what's going on.

Formulas, formulas, formulas! So confusing. This is why, I LOVE THE RULE OF 72.

In the finance world, the Rule of 72 is an easy method of quickly determining the time required to double the value of your investment. Although spreadsheet programs and calculators have functions to determine the accurate time elapsed to double your money, this simple 'rule of thumb' can prove useful for swift mental calculations.

Here's an example. You go to the bank and see a great big poster advertising a Guaranteed Interest Certificate which gives you a guaranteed rate of 3%. You think to yourself, "self, if I deposit my cash into one of these I can double my money in ... twenty four years! (72/3%)

EASY!

Want to retire in 18 years? Need to have $800,000. to supplement your company and gov't pensions at retirement?
Let's assume you currently have $250,000 in savings and the best return you can get is 4%. Using the Rule of 72 you can quickly figure that you will have $500,000. in 18 years. (72 / 4 = 18)

So you will have a $300,000 shortfall. Now, you can develop a savings strategy to create an additional $300,000 over the next 18 years.

By engaging in a regular savings plan you can factor in the required amount ($300,000), the amount of time (18 years) and the projected return on capital (4%) and determine how much money is required to deposit through regular intervals. In this case you would deposit $1,000 per month ($12,000/yr) for the next 18 years (@ 4%) to have saved that $800,000.

There are many online calculators available to assist you with the answers. The one I used to arrive at the conclusions here was http://www.mackenziefinancial.com/ .

Now, how about that sumptuous Steak with Red Onion Marmalade, groovy Grilled Asparagus and marvelous Mom's Maple Salad Dressing for the upcoming long weekend?

STEAK with RED ONION MARMALADE

Here's what you will need:

• 4 thick rib eyes or strip loin steaks
• freshly ground black pepper

Onion Marmalade

• 2 red onions thinly sliced
• 2 tablespoons of butter
• 2 tablespoons of brown sugar
• 1 tablespoon of balsamic vinegar

Trim excessive fat from the steaks, then sprinkle them with generous amounts of fresh ground pepper. Cover and set aside on the counter for an hour or so as these steaks should be at or about room temperature when they hit the grill.

Heat the butter in a saucepan on low and add the onions, stirring occassionally until the onions are soft. Add the brown sugar and vinegar, leave of low heat, keep up with that occassional stir for about 30 minutes. You'll know when this is done.

Place the steaks on a pre-heated lightly oiled grill. I like to crank it on 'HIGH', get it good and hot, and then turn down to 'LOW' as I'm putting on the steaks. CLOSE THE LID. Rare steaks take about 3 minutes per side (ONLY TURN ONCE) and Medium steaks take about 4 minutes per side.

Take 'em off the grill, put on a warm plate and cover tightly with tin foil immediately. Let these 'rest' for a couple of minutes while you're grilling the asparagus.

GRILLED ASPARAGUS

• 1 hefty bunch of asparagus (1 lb/.5 kg)
• (fresh) Parmesan
• 2 crushed garlic cloves
• 2 tablespoons of olive oil
• 2 tablespoons of balsamic vinegar

Break off the woody ends of the asparagus. (hold each end and bend until they snap) Then brush with a bit of olive oil, drop them on the grill for about 3 minutes until they are bright green. Mix together the oil, garlic and vinegar and pour the dressing over the warm asparagus ... then sprinkle with freshly shaved Parmesan and fresh ground pepper. These only take a few minutes and will be complete by the time time your steaks have 'rested'.

If you decide to have a fresh green salad with your steak and asparagus, here is an incredibly easy and refreshing dressing that your have to try. (Until today this was my Mom's secret recipe)

Mom's Maple Dressing

Mix 1/3 olive oil with 1/3 balsamic vinegar and finish with 1/3 maple syrup. Whisk it together and add to any salad for something different and delightfully tasteful.

That's it for now! Have a great long weekend, drive safely if you're heading out of town and don't forget to check your propane tank before firing up that bbq. Nothing worse then running out of fuel as you're getting started. I speak from my own experience.

DIG IN!

Jeff & Beverley

INVESTING MADE EASY? How about easy Great Greek Potatoes?

Okay, it's me again and you might be wondering what I'm doing? (or what Jeff's not doing) Well, as I said in my last blog, I would take us all back to basics, so wanted to continue on this theme, so here I am.

I'm not the financial wiz in this duo (you might have guessed) and I usually get Jeff's opinion on this investment stuff, so I've been thinking, I'll figure this out myself and in the process - learn something too. So I went on a mission to find the easiest financial planning, investing made easy, financing for dummies books that I could find ... that was a task in itself and involved me viewing rows and rows and rows ... and rows of financial books in the local library. It's a challenge indeed to figure all of this financial and investment stuff out on your own, which explains what our primary objective is with this blog, to take the guesswork out of investing.

Ironically (or maybe not) all of The Wealthy Barber copies were already on loan. Hmmm, sounds like there's an appetite out there for this basic financial planning stuff.

So, I ended up bringing home seven (7 !)books, all of which have tons of information... but the question remains - is it easy enough to understand, and, are regular people able to incorporate the information into their lives without requiring an MBA or a PhD in business?

As I digested the contents of the mountain of reading material before me, I began to realize that most of the content of these financial guides shared a similar theme: get back to basics. This begins with assessing your financial fitness and goals, setting a budget (which we did in the last blog) determining what you have to invest and understand your risk tolerance. Easy enough.

The next step is to build wealth (grow your money, get rich slowly)) through investing - since that's what we're all about at DIGestingINvesting!

As you begin to put all of your objectives in line, connecting the dots, it is also imperative to factor in your age. This is very important due to the timelines you have ahead of you and the actual amount of time that you have to achieve your financial goals. Still kinda easy, eh?

Group 1 - age 17 to 25

Group 2 - age 26 to 38

Group 3 - age 39- 50

Group 4 - age 51-65

Group 5 - over 65

For each age group there are different suggested portfolios and risk factors. Risk ranges from conservative (for older investors who have fewer long-term financial needs) to average risk for (the majority of people who have a longer time to achieve their financial goals) to aggressive (for younger investors who have a longer time to achieve their financial objectives).

So based on age and risk factor, there are 4 investment categories : protection, income, growth and speculation. By determining where you fit on the risk spectrum, understanding the benefits and the risks associated with each category, you will have a good balance of safety and growth. This will ensure that you remain within your investment 'zone' and most importantly, get a good nights sleep.

In the next blog, we'll review each of the investment categories in more detail.

But now, I am pretty excited to reveal the recipe for the BEST GREEK POTATOES EVER !!!

I made them for Jeff's birthday party last Saturday and they were a big hit and today I thought I would post them in this blog. They are so easy to make... and delicious ...

Great Greek Potatoes

Heat oven to 375 F

5 or 6 Russet Potatoes, peeled and cut in half (make them all similar size)

1/2 cup olive oil

1/4 cup lemon juice (or to taste)

1 tsp dried oregano

1 tsp dried thyme

2 cloves of garlic chopped

Place potatoes in a baking dish ensuring that all the potatoes sit on the bottom of the dish.

Mix all the other ingedients together, and pour over the potatoes

Cover and bake for about 1 1/2 hours... being sure to turn the potatoes, once in a while, and being careful not to let the broth dry up... if so add more olive oil and lemon juice (mixed together)

Enjoy... OPA!!!

Thanks everybody for stopping by and be sure to check out our next blog where we will take a closer look at balancing your investment objectives with your timelines and your appetite for risk.

DIG IN !

Beverley and Jeff

NEW YEARS RESOLUTION /2 - Budgeting and Beverley's Gazpacho Delight

So how are those New Years resolutions going?

Are you sticking to the plan, whatever it might be?

In this entry I'm going to talk about BUDGETING... and Gazpacho(?) Yes as we said we are going to start from scratch this year... and learn together. So the BIG question is - DO YOU HAVE A BUDGET? If the answer is yes... is it working for you, or are you still trying to make ends meet? If it's working for you then you might want to skip this part and go straight to the gazpacho recipe (I know it's an odd time of the year to be thinking 'gazpacho' but personally, I like it as much in the January as I do in July)

In this economic downturn ... which 'they' say will soon be over (any year now), ensuring that your personal financial house is in order is imperative. Feeding the kids, paying the bills, paying your mortgage, clothes, school supplies, gas to get to work so you can keep that job, you get the picture, all of the 'non - negotiables' . What is negotiable are the extras, dinners out, fancy desserts, ultra light double grande with mocha cream, manicures (I love manicures) you get my point.

Budgeting involves understanding how much money you have coming in vs. how much you have going out. When you create a budget, you're creating a plan for saving and spending. Pretty basic stuff .

Step One - Understand Your Expenses - Track 'em!

Preparing a personal budget can be a mystery if the amount coming in and going out of your pocket is unknown. You'll need to list your expenses to better understand where your money is going. Best to track over the period of a month ... then when you are done.. you'll be better able to set a weekly or monthly budget. It may sound too simple, but try keeping a diary of how much you spend at the coffee shop each day, parking, gas, groceries, insurance (life, auto, car) hydro, electric, water, taxes and so on and so on and so on. (it never ends!) Keep a notepad close at hand and sit down every day and summarize all of the dough that you spent that day. Do this for a month and divide the total by 30 (I find that my daily total is less scary then my monthly total ... even though it is the same amount)

Step Two - Understand Your Income

Whether you are a single individual or a family, you need to determine how much money is coming into your household every month. Once this is determined, you will now know how much money there is to work with. If you find that you are spending more money then you make, well, some serious choices have to be made.

You may find that you will have to deal with choices or concessions in order to bring your spending or saving back into control.

1/ get a part-time job (or 2) 2/ go back to school or get training for a better paying job or, 3/ stop spending so much money!

REMEMBER ... SPEND LESS THEN YOU MAKE !

If you google "how to set up a budget" there are lots of web sites available, some will cost you money but they can supply you with templates of budget sheets. Or go to your local library, or bookstore. I found this link to a free household budget (printable) form. Give it a try.

www.homemoneyhelp.com/budgetformP.html

When you know how much is coming in versus going out.. you'll then have a better idea of what you can save, spend and INVEST... and we will get into the investing stuff over the weeks ahead.

Now I'm getting hungry... and I know Gazpacho really doesn't have anything to do with this topic but it is my FAVOURITE SOUP IN THE WHOLE WIDE WORLD !!! Just think, summers coming, and you can sit out in your backyard ... and have this wonderful, cool, tasty, (good for you) soup...

Beverley's Gazpacho Delight

1 - 1.36L can Tomato Juice
1/4 cup olive oil
1/4 cup tarragon vinegar
1/2 tsp pepper
1-28oz can Whole Tomatoes
2- onions chopped
2- green peppers chopped
1 cucumber, sliced thinly
2 -stalks of celery
1/4 -cup parsley chopped
dash tabasco (depends on how hot you like it)
1 tsp Worcestershire Sauce


Combine all the ingredients in a large bowl - use a hand mixer to blend well.

Note: if you want to make a smaller amount - you can use an electric blender and put all ingredients into blender and blend. If you use 19oz tomato juice can suggest cutting everything else in half.

Refrigerate for 2 hours or until ready to serve.
I constantly taste this soup throughout the process.. add a little here.... add a little there !!
I call it my Beverley Gazpacho Delight !!! Enjoy....


Good luck with the budgetting process.. it is cumbersome and boring... but take on the challenge, make that commitment to yourself get back on track and take control of your financial future. Be diligent, be committed and be in control!

Next blog we'll start to move on with what to do with all that money you now have to SAVE and INVEST.
Thanks for stopping by
DIG IN !

Beverley and Jeff

NEW YEAR RESOLUTIONS - Chick Pea and Tuna Salad

Well Happy New Year to everybody...

No more CHRISTMAS BLUEBERRY PUDDING !!!

No more Chocolates, No More Tarts!!!

I've given Jeff the day off. Today, I am going to delight you with my financial savvy along with this great recipe.

Let's get back on track and let's make 2010 our best year ever, best recipes, best investment advice, best job advancement, best vacation you've even taken!!! BEST BEST BEST

I'm sure you've contemplated what millions did around the world.... What to set as your 2010 New Year Resolution!! Most people want to lose weight, win money, have world peace, invest correctly !!! Don't we all wish we had the magic wand !

But this is the start of a new year. so let's start the year out right. The future isn't that far away and if you want to live the lifestyle that you've grown accustomed to, want a better lifestyle, when you have more time to enjoy it ... you need to do something about it. The earlier you start investing the better. Even starting just a few years earlier, with the benefits of compound interest/growth it will help your investments grow to higher levels and your financial dreams realized.

Now, I'm not going to get into the details - if you are 30 years old and put away $50 a month by the time you are 65 you'll have invested and so on... we've already been through all that in prior blogs and most financial books you pick up at your local book store, will out line this information for you very well.. but it is all true and 2010 is the year, it's YOUR year. If you've been procrastinating... this is the year to START. Why Not? Don't find excuses find solutions!

Remember your Christmas bills are starting to show up at the door and the best thing you can do is pay them off first before saving. WHY- Because it never makes sense to pay your credit card company 20% + or - when you're only getting .05% on your savings. A losing proposition for sure!

Now that Christmas is over, your body may be saying.. "I've had enough of all that rich, high fat foods of the holidays" This salad is a perfect as an appetizer or main dish. It has a lot of great textures and great lemony flavour. It's very light and refreshing.

Chick Pea and Tuna Salad

1 can (19oz) chickpeas drained

1 garlic clove minced

1 cup grape tomatoes, if not available dice a fresh ripe tomato

Grated lemon zest of 1 medium lemon

1/4 cup fresh lemon juice

1/4 cup light olive oil

1 can (approx 6 oz) solid light tuna packed in olive oil, well drained

- break into large chunks

2 large green onions

1/2 teaspoons salt

fresh ground pepper

1/2 cup fresh chopped parsley

Gently stir all the ingredients, except parsley, together in a medium bowl

until combined. Just before serving , stir in the parsley. Serve at room

temperature, garnish with lemon zest if desired.

Happy New Year... here's to hopin' that all your resolutions (and dreams) come true !!!

Thanks for stopping by!

DIG IN!

Beverley and Jeff