Active versus Passive Investing

There has been a lot of talk in the past couple of years around a movement to passive investing and an explosion of exchange traded funds (ETFs). But what does it all mean?

What is Passive Investing?

Passive investing, also known as index investing, aims to replicate the performance of a specific market index (e.g., S&P 500) rather than attempting to beat the market. The core belief is that markets are generally efficient, and it’s challenging for active investors to consistently outperform them. As a result, a number of ETFs have been created for various companies to get a piece of this action.

What is Active Investing?

Active investing involves actively selecting and managing investments with the goal of outperforming a specific benchmark or the overall market. Active investing can include anyone who picks their own stocks on a self directed platform to professional portfolio managers who are a Chartered Financial Analyst (CFA) and/or Chartered Investment Manager (CIM).

Why Hire a Professional Portfolio Manager?

A professional portfolio manager brings a level of expertise to selecting the investments you will hold for your wealth creation. A great manager will not only understand the cyclical nature of the markets, but will also understand the businesses that they add to the portfolio.

Portfolio Managers are NOT Created Equally

Everyone brings with them a different skill set and outlook. Watching the market price vary is not enough to make someone a great portfolio manager. Having someone who understands you, your goals, and the various parts of your portfolio will help to ensure that you are diversified sufficiently to take advantage of the opportunities that lie before you. A great portfolio manager looks not only at the upside, but also works to ensure you are protected on the downside.

What About Cost?

Generally speaking, passive investing fees will be less costly than active investing. However, there is also a cost with every decision. If you sell at the wrong time – that can be very expensive. If you buy at the wrong price – that can cost substantially over the long run. Market price matters on entry and exit.

Studies show that working with an advisor long term increases your wealth 2.3 to 2.7X. That’s a value add for a very small percentage cost difference.

Price is what you pay, value is what you get. Don’t confuse the two.

Why Do I Like Active Investing?

I’ve had all kinds of investment advisors in the past but until I found portfolio managers that communicated directly with me in plain language, I never really knew what was going on. I was paying a lot of trading fees and trusting they were working on my behalf.

Today, I have portfolio managers that I trust not only with my money, but the money of my clients as well. That says a lot. I trust their process, understand their decisions, and ultimately can sleep well every night.

Time and health are non-renewable commodities – and having a process in place that takes care of my marketable assets by owning the best and leaving the rest does just that.

Advisory
As your Chief Financial Officer, I am here to help guide you through the various areas of wealth creation. Helping you understand your money and assisting you in making smart financial decisions about your debt repayment, insurance protection, tax management and wealth, are just some of the ways that I work as your fiduciary.

Have more questions than answers? Educating you is just one piece of being your personal CFO that we do. Call (780-261-3098) or email (Roxanne@C3wealthadvisors.ca) today to set up your next conversation with us.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission of Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS). She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in 2012 to leave optometry and become a financial planning professional. She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.

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Master Emotional Intelligence in Relationship Management

Human Resources, Managing Others

In today’s workplace, building strong and positive relationships with coworkers is crucial for personal and professional success. It not only enhances job satisfaction but also promotes collaboration, productivity, and overall well-being. One of the key skills that can greatly contribute to effective relationship management is emotional intelligence.

Emotional intelligence, often referred to as EQ, is the ability to identify, understand, and manage our own emotions, as well as recognize and empathize with the emotions of others. By using emotional intelligence skills, individuals can navigate workplace relationships with empathy, adaptability, and effective communication. In this article, we will explore the importance of emotional intelligence in relationship management and provide practical strategies to enhance your EQ skills.

Why Emotional Intelligence Matters in the Workplace

Effective relationship management is at the core of a healthy and thriving work environment. When you possess high emotional intelligence, you are better equipped to handle conflicts, manage stress, and foster positive connections with your coworkers. Without EQ your workplace will lack the important skills needing to create strong relationships with coworkers and in turn your patients. It will become an environment that could foster resentment, loneliness, and hostility.

Actively using EQ matters, because if we don’t make the conscious effort to use it we will default to protective behaviours in an environment that doesn’t require them. No one is fighting off lions, tigers, and bears in your workplace (hopefully) so why are we allowing our brains to respond in that way?

It’s vital to work on developing new default behaviours that encompass relationship management to maintain a constructive, happy and inclusive environment. We can only perform to the level we are taught, now let’s learn about relationship management!

Developing Emotional Intelligence for Relationship Management

walking up stairs

Now that you understand the importance of emotional intelligence in relationship management, let’s explore some strategies to develop and enhance our EQ skills. By incorporating these practices into your daily interactions, you can cultivate stronger and more meaningful connections with your coworkers:

Self-Awareness

Self-awareness is the foundation of emotional intelligence. Take the time to reflect on your own emotions, triggers, and communication style. Recognize your strengths and areas for improvement. By understanding yourself better, you can become more mindful of how your emotions affect your actions and in turn, impact others.

Active and Empathetic Listening

Active listening is a crucial skill for effective communication and relationship building. Practice truly listening to others without interrupting or formulating responses in your mind. Pay attention to both verbal and non-verbal cues, and show genuine interest and empathy in what others are saying and feeling.

Empathy and Perspective-Taking

Empathy is the ability to understand and share the feelings of others. Put yourself in their shoes and try to understand their perspective. It is important you let go of your own perspective on the matter at hand when doing this. It will help you respond with compassion and make others feel valued and understood.

Emotional Regulation

Managing your own emotions is essential for building positive relationships. Take steps to regulate your emotions by practicing stress management techniques, such as body calming and wide perspective taking. By staying calm and composed, you can respond to challenging situations in a more constructive manner.

Conflict Resolution Skills

Conflict is a natural part of relationships, but emotional intelligence can help navigate conflicts effectively. Focus on finding common ground, listening to others’ perspectives, and seeking mutually beneficial solutions. Avoid blame and defensiveness, and instead, approach conflicts with empathy and a willingness to find the win, win.

Building Trust

Trust is the foundation of strong relationships. Be reliable, honest, and transparent in your interactions. Follow through on your commitments and demonstrate integrity in your actions. By building trust with your coworkers, you create a safe and supportive environment where collaboration thrives.

Recognizing and Celebrating Successes

Acknowledge and appreciate the accomplishments of your coworkers. Celebrate their successes and provide positive feedback. By recognizing the contributions of others, you create a culture of support and encouragement, fostering stronger relationships within the team. When you celebrate the successes of your coworkers it’s like you are making a small relationship deposit into their “Relationship Bank Account”. As these add up over time you will see the relationships you have become very strong and secure.

Continuous Learning and Improvement

Emotional intelligence is a skill that can be developed and improved over time. Seek opportunities for growth, such as attending workshops, virtual trainings, listening to podcasts, or reading books on emotional intelligence. Reflect on your interactions and identify areas for improvement. By continuously learning and striving to enhance your EQ skills, you can become a more effective relationship manager.

Take this with you

Emotional intelligence plays a vital role in relationship management in the workplace. By cultivating and honing your EQ skills, you can navigate conflicts, communicate effectively, and build strong and positive connections with your coworkers. Remember, emotional intelligence is a lifelong journey of self-awareness and continuous learning. By incorporating the strategies mentioned in this article, you can enhance your relationship management skills and create a more harmonious and fulfilling work environment for not only others but yourself as well.

It’s never too late to start learning, just take it one step at a time.

Jade Bodzasy

Jade Bodzasy, Founder of Emotional Intelligence Consulting Inc., is a dedicated Coach and Consultant for Optometric Practices. Her extensive background includes over 20,000 hours of expertise focused on customer relations, work structure refinement, training method development, and fostering improved work culture within Optometric practices.

Certified in Rational Emotive Behavior Techniques (REBT), Jade possesses a unique skillset that empowers individuals to gain profound insights into the origins of their behaviors, as well as those of others. Leveraging her certification, she equips optometry practices with invaluable resources and expert guidance to establish and sustain a positive, healthful, and productive work environment.

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Investing Basics: 5 Essentials

Building Wealth, Finance|Wealth

Everyone makes it sound so complicated. From “just start here with XYZ online brokerage” to a myriad of books, articles and opinions. But what are the basics?

Start at Home

Investing in your home — Don’t Over Glam

Start at home can mean two things. The first is about investing in your own home. You need a place to live and you might as well create some equity out of that expense. Keep in mind that real estate isn’t always a great investment. Like everything else, the price you pay matters. You will also need to ensure that you maintain that property for it to hold its value. And you need a buyer. Something is only worth as much as someone else will pay for it. Don’t over glam as you risk pricing yourself out of your market area.

Invest in What You Know

Invest in What you Know — You Know Optometry

This is the second point of starting at home. What do you know about?

Optometry is a given. So invest in your own practice. Here you will have control over the decisions that will directly impact your bottom line. You know it and can control it.

Invest in Profitable Businesses

When it comes to investing in an optometry practice or in owning marketable securities, you always want to own businesses that are profitable. In practice you can turn a fledging private business around and make it profitable. In publicly traded securities you don’t have that kind of control or impact, so it’s vital that the business is profitable and run well.

Profitable businesses have sufficient cash flow to pay their debts (yes, successful businesses know how to use leverage to their advantage), are able to roll profits into expansions and growth, and most importantly, can pay their owners a dividend. It’s vital that you get paid for taking on any risk of business ownership. Seems so basic that most people forget this tenant of investing!

Invest in Sustainable Businesses

Green sustainability aside, a sustainable business is one that is durable and can stand the test of time. These are businesses that, quite simply, are difficult to live without, difficult to compete with, and difficult to replicate.

In Canada, think of CN Rail – it moves, literally, boatloads of goods across a vast distance very efficiently. It would be ridiculous to think that a competitor could easily come in and create a competing railroad today.

Price Matters

As mentioned with real estate, price matters at all times when buying investments. The price you pay for your optometric practice should be manageable and easily recouped by profits over a period of typically 5 to 10 years. The price you pay for marketable securities is also key to seeing growth. No business out there is worth an inflated price.

Think about multiples. You often hear that practices are selling for 3-5X EBITA (earnings before interest, taxes and amortization). This same factor applies to business stocks. It’s common on the stock market to pay over 100X earnings. In fact, at the start of the tech buzz, CISCO was priced at valuations over 200X P/E (price to earnings). CISCO has gone on to be a great business worth owning – but if you bought it at these ridiculous prices, you are still down on your investment. No business is worth an outrageous price.

You can also think of P/E as the number of years it takes to recoup your investment. If something is trading at 200X P/E it will take you 200 years of current earnings to break even. I know I won’t be around long enough to see that happen!

In Summary

Investing shouldn’t be a game you play. It should be done with intention and knowledge. Knowing what you own and why you own it is the basis of all good investments.

Advisory

As your Chief Financial Officer, I am here to help guide you through the various areas of wealth creation. Helping you understand your money and assisting you in making smart financial decisions about your debt repayment, insurance protection, tax management and wealth, are just some of the ways that I work as your fiduciary.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission of Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.

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Great Leaders Trust Their Instincts

Leadership, Managing Others

Many practice owners underestimate their abilities as entrepreneurs. Practice stats, financials, HR issues, marketing and other tasks let alone patient care and management, overwhelm some people. Some will tell me they are terrible at business and choose to let someone else handle it.

Practice owners are much better at business than they believe. The reality is that practice owners are business leaders. Therefore, practice owners are faced with important decisions daily. You determine strategic direction, guide hiring, set practice priorities, the list goes on. People make decisions using two different processes; the first is based on logic and facts, and the second is based on intuition. This is where I feel practice owners do not give themselves enough credit.

Obviously, we must look at the facts. But have you thought to yourself when you do see the facts, “I’m not surprised, I felt that was not right at the time…”

We do not want to trust our instincts as much as we should because it means we must pay attention to our emotions. Oftentimes we need to remove the emotion from a difficult situation.

Why Don’t We Trust Ourselves?
Controlling emotions is more important when it comes to reacting to a situation. But what about when making decisions? What if you have the facts, but there might also be competing or incomplete information? In these cases, trusting in intuition becomes a valuable leadership competency. As Bill Gates says, “often you have to rely on intuition.”

Sometimes, people do not want to trust their intuition. It is important to discern between intuition and fear. We have all faced a situation where we were simply afraid to take action. Fear tends to be accompanied by bodily sensations, you may feel tense, panicky, or desperate. Fear has a pushing energy, as if you are trying to force something, or selecting an option because you want to avoid a threat, rejection, or punishment.

Fear also tends to be dominated by self-critical thoughts that urges us to hide, conform, or compromise yourself. Intuition on the other hand has a pulling energy, as if your choice is moving you toward your best interest, even if that means pursuing a risk or moving more slowly than others. This is usually accompanied by feelings of excitement and anticipation or ease and contentment.

Physically, gut feelings tend to cause your body to relax. With intuition, your inner voice is more grounded and wiser, like a good mentor. And remember, using intuition does not mean you have to make a quick decision. An intuitive decision can still take a few days.

Whenever I have important decisions to make, I do trust my instinct or my gut. Try asking yourself:

Do I pay attention to my first reactions about a given issue?
When I am faced with a decision, do I consider my feelings in addition to the facts?
Do I check in with my gut feeling after summarizing the pros and cons?
Do I pay attention when my gut sense is at odds with the available information?

To help use your intuition more, simply slow down. We answer our texts and emails far too quickly. We may feel compelled to make a quick decision despite being extremely tired. It is hard to slow down given the pace we are all running at. But taking a step back is important and necessary to access intuition.

The next time you are faced with an important decision, take some time to get out of your head and away from your office. Go for a walk. Do not feel the need to respond quickly. Just sit with the decision, ponder alternatives, and try brainstorming new solutions. As you do so, tune in to your emotions and evaluate your reactions to understand how intuition might be leading you in this situation.

What about the time your intuition failed? Did it really fail? Or did you let biases get in the way? There will be times when intuition leads you astray because mistakes can be attributed to unconscious biases. Biases are cognitive distortions that manifest in personal preference or misleading assumptions.

Have you noticed when you decided too quickly or were overconfident, that is when things went wrong? Whenever you let your biases interfere with your decisions, they skew your objectivity leading to the wrong decision. Your gut did not let you down but rather you chose to listen to your personal opinions that influenced your judgement.

Anchor Your Intuition with Core Values
The next time you have a decision to make, try and engage your intuition. It is always important to remind yourself about your core values and what is most important to you. Examples include service, stability, family, or calmness. Perhaps you are feeling agitated after a long day at work when nothing went your way. Your core values can help you pinpoint the source of your frustration and understand it more clearly. Using your values, you can check-in to figure out what feels off internally and gain perspective on the situation. Remember, your core values represent what is most important to you so do not be afraid to fall back on them.

I am confident that people who pride themselves on having a strong intuition, honed through years of experience, helps guide their decisions. Others will be ambivalent about relying on their intuition to make important choices because they are concerned that their gut reaction is inherently biased or emotional. This latter group is no doubt responding to the oft-given advice that we should use formal data and analysis to “check” our intuitions.

So, who is right? Should leaders make decisions based on their gut feeling, or should they not?

Please do both. Facts speak loudly and clearly; they cannot be dismissed. But remember to listen to your inner voice. Go to a quiet place, clear your mind, remove fear and biases, and truly listen to your instincts. They will not lead you astray.

A challenge for you after reading this article is to take a moment today or tomorrow to reflect on what your top one to three values may be. The next time you find yourself struggling to make a decision, ask yourself, “which action or decision brings you closer to those core values?” Going within can help dissolve the internal tension that leads to mental loops.

Finally, keep in mind that intuition cannot flourish in busy, stressful environments. Give your mind space to wander and make connections. Remember, while intuition is not perfect, it is also a decision-making tool you are underutilizing, at the moment. Trust yourself a little more and you will be surprised to find that your gut is a more powerful decision-making tool than you may have realized.

You are a practice owner and entrepreneur for a reason. Embrace this role. Sometimes a big challenge is the dislike one may have for leadership. The more you fight it, the harder it can be.

Implement systems that help you manage effectively. Always remember, you are not in this alone. There are resources available if only you choose to reach for them.

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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Socrates Triple Filter Test: A Primer for Good Office Culture

Independent SightLines

Ahh the thoughts that go through my head in a day! I am thankful nobody is a mind reader (at least as far as I know!).

Every day there is a battle in our minds to stay on task, to be positive, to be kind and to be grateful and mindful. Some moments of the day our thoughts can flash to frustration, anger, negativity, gossip and resentment. We are human after all and it is difficult to control every thought and make it a positive one, even for those who are consciously being mindful to keep their thoughts focused and positive. The good news is that our inside thoughts do not automatically come out via our outside voice.

We all know team members, including doctors, that have a very low filter from their mind to their mouth. If they think it, they say it! Of course, this isn’t conducive to a great team culture. Being unfiltered brings mean spirited words, negativity, gossip and discomfort for the listeners.

Ultimately a lack of filter can be a catalyst for others to have no filter, leading to general office tension and low morale.

Socrates Triple Filter

Socrates said if what you’re about to say isn’t true, good and/or useful, then don’t say it! It is incredible how much more productivity and positivity results when the triple filter test is utilized to filter one’s thoughts before the words come out; this takes discipline.

Culpability of the Listener

We teach our team members that if they happen to be listening to one staffer complaining about another staffer they are contributing to office dysfunction through the act of listening.

We encourage the listener to ask the speaker to approach the staff member with whom they may have an issue directly rather than through a third party. If necessary, we ask them to approach a manager or leadership team member to discuss the facilitation of face-to-face dialogue.

When an offender of the “triple filter test” is called out by a colleague, then we are more likely to see better office dialogue centered on patient care and process improvement rather than gossip, hearsay and unproductive conversation.

Accountability via Compensation

We ask each of our staff to touch base quarterly with a manager or leadership team member for a coaching session. This is an informal way to check in with each staffer and remind them of the importance of not participating as a listener in counter-culture dialogue. We make it clear that poor verbal control is a barrier to raises and promotions. Linking compensation to more professional conversations is very important to a good office culture.

It’s All in Your Tone

Studies have shown that it mostly matters “how you say it” versus “what you are saying”. Even when the content is muffled to the point of incomprehensibility, people can detect in the tone whether that person is a “good” or “poor” manager.

Tone is absolutely crucial to how well feedback, advice, and training are received. A kind tone of voice communicates respect, appreciation and a willingness to help. Employees enjoy working for an enthusiastic, upbeat manager whose words and body language are congruent.

Avoidance Isn’t a Solution

The “silent treatment” is a very good way of increasing tension and pressure during a negotiation, but it has no place in a culturally strong office environment. We ask our team members to sort out issues directly and quickly.

Harbouring resentments and ill well are almost always felt by other staff members and notably, by the patients. Staff of clinics with low morale and poor culture are more likely to leave their jobs and work elsewhere.

One of the best retention strategies is to have an office that communicates well, works together and filters their thoughts into optimized words to create a culture of respect.

View all of Dr. Miranda’s Independent practice Insights.

DR. TREVOR MIRANDA

Dr. Miranda is a partner in a multi-doctor, five-location practice on Vancouver Island.

He is a strong advocate for true Independent Optometry.

As a serial entrepreneur, Trevor is constantly testing different patient care and business models at his various locations. Many of these have turned out to be quite successful, to the point where many of his colleagues have adopted them into their own practices. His latest project is the Optometry Unleashed podcast.

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Impact of Increasing Interest Rates

Accounting Basics, Building Wealth, Finance|Wealth, Real Estate

Has the constant increase in rates for the past 6 months created serious indigestion for you? No doubt anyone looking at selling or buying a practice is feeling nervous.

Let’s look at the overall effect of higher interest rates.
1) As interest rates increase so does the cost of borrowing. A cautionary tale is to not be carrying any credit card debt if possible.

2) Does the hike in interest rates affect practice values? Technically no. When we appraise an office, we assume it is debt free. As much as we do not agree with valuing a clinic as a multiple of EBITDA, interest is added back, so again, the increase does not affect the value.

3) Will a buyer be influenced by interest rates? Absolutely. Let’s say for example a practice is valued at $1 million. Because a purchaser must borrow from the bank, debt servicing must be considered. Depending on cash flow, the buyer may not get 100% financing. This does not mean that the practice is overvalued. It simply means that for a buyer to purchase this office, they must either put some of their own money into the transaction or offer a lower price at the clinic.

4) Do higher rates affect spending? In normal consumer spending it would. Many of us would think twice about certain investments or luxury purchases. However, if you have been associating for years and want to be an owner, interest rates are just a part of doing business.

Regional Differences
I am certainly not an economist nor qualified to make such statements. From all the articles I read though, it is interesting to see how nationally, interest rates affect the individual provinces. British Columbia and Ontario are hit harder but this is due to the aggressive housing market experienced in prior years. The Prairies are doing well – commodities continue to be in demand (energy, crops, to cite a couple). Atlantic Canada is also holding well because quite frankly, they have been used to tough times in the past. But poor Quebec, it looks like it is heading for a recession due to an aging population and lower immigration level.

Economists say we will be in a mild recession. I think we already are. However, we’ve gone through this before. Anyone remember 2008? I was a banker at that time, practice values continued to increase and as a lender, we continued to provide financing.

There have been 11 recessions since 1948, averaging out to about one recession every six years. It is important to remember that recessions are part of the economic cycle.

A Silver Lining
As tough as they can be to experience, they also offer important economic benefits. As a practice owner, a recession will hopefully encourage you to be creative – look for ways to be more efficient and save on costs. Review your existing customer service policies – can you make patients feel more appreciated.

While recessions are painful, remember they are only temporary interruptions to the economy with an improvement to follow.

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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5 Tips to Financial Freedom

Building Wealth, Finance|Wealth

Adulting 101 is a big course. It’s lifelong and something we continue to learn about and grow from our experiences. Regardless of where you are on your career path, here are five tips to attaining financial freedom.

Cash Flow is King

You need to prioritize your cash flow. There is no single good answer for everyone on what that looks like, but it is a combination of debt repayment, savings, and living within your means today.

When we focus on savings, we are really focussing on time – the time needed to compound the growth of your money for your future use.

Money is a renewable commodity, but time isn’t. The sooner you figure out that you don’t want to actively work forever, the sooner you can start to put your money to work for you. Time is your friend when it comes to compounding. The sooner the better!

Opportunity cost is key here. You are always trading something. Is that daily latte worth having if it means you’ll have to work until you’re 65 or older? That money will better serve you in the future if you start putting it to work now.

Organizing your Debt

Paying yourself first is key. Paying debt is critical to your long-term success. The general rule of thumb is that debt repayment should account for no more than 30% of your cashflow.

Student loans, mortgages, and car payments are all included. So, if you are well surpassing this 30%, it’s likely time to revisit your strategy. Are you too aggressive at debt repayment at the expense of growing assets? Are you in a house that is way above what your income can support?

And don’t get me started on credit card and other consumer debt. If you can’t afford to pay cash for it now, you certainly can’t afford it when the bill comes with its 20% interest rate!

Insurance: Needs and What to Avoid

Remember, you are the goose that lays the golden egg. Therefore, you need to protect your ability to earn an income. Taking care of yourself and your family is key – and it helps you sleep well at night.

Insurance is an extremely large topic that we have touched on several times. Some key points from the past:

creditor insurance protects the lender
renewable and convertible are your friend
partial and residual will serve you well
insuring items that are easily replaced is not the best use of your cash
protect from liability

The key to know here is that not all insurance is of equal value.

Of late I’ve been getting more questions around permanent life insurance. Yes, this can be an effective strategy but, as cash flow is king, you need to prioritize those dollars allocated to insurance premiums. Using life insurance as an investment tool should generally only be considered after you have exhausted all other saving vehicles.

Plan for the best, prepare for the worst.

Minimize Taxes

No one likes taxes and, if you take a salary or make installment payments, you may assume that you are covered off here. The reality however is that those amounts are based on either the current tax tables or your past payments. They don’t reflect the lowest amount of tax you have to pay.

There are many opportunities to lower your current and future income taxation; different savings account types, the use of health spending accounts, and debt swap are just a few options. Dividends vs salaries. Share sale vs asset sale. Investing personally vs in a corporation. Buying real estate vs marketable securities. TFSA vs RRSP. They all have different tax implications that you need to understand.

Understanding your after-tax rate of return also matters. If your marginal tax bracket is 50% and you earn a 10% rate of return on your investment, your after-tax rate of return is only 5% if this is an Open account. But it is 10% if the investment is held in a TFSA.

Spend some time reviewing your last year’s tax return (personal and business) with your CPA and CFP to develop a plan to reduce your tax bill this year. Lots to talk about and lots of opportunity.

Save for Retirement

I struggle with the word retirement and really do prefer financial freedom. Regardless, you can’t cover your living expenses if you haven’t created an income stream that doesn’t involve you working day in and day out.

There are many ways to build up net worth and you need a plan that includes some liquidity. Building a practice is great, as is commercial real estate. But these are illiquid and are often not as easy to access when you need the cash flow as you expected. It’s important to have liquidity in some of your investments. You just never know when your dream around the world cruise might come on sale!

When is the best time to start investing? 20 years ago. The second best time though is NOW.

Advisory

As your Chief Financial Officer, I am here to help guide you through the various areas of creating your financial freedom plan. Helping you understand your money and assisting you in making smart financial decisions about your debt repayment, insurance protection, tax management and wealth creation, are just some of the ways that I work as your fiduciary.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission of Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.

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Diversity and Inclusion in Eye Care

Independent SightLines

Canada is an intricate textured tapestry of different cultures. Each patient is unique and presents with different preferences and lifestyle choices. In today’s optometry world (and all healthcare in general) it is important to make every patient feel welcome and included.

I was born in a small town in Ontario, Canada to immigrant parents (from Goa, a Portuguese colony now part of India). My hometown was predominantly of homogeneous Caucasian descent and my darker skin stood out as an obvious difference from others in the community. “Where are you from?” would be standard line from people that had just met me, implying that I was from another part of the world given the physically obvious differences. “I’m from Canada and my parents are from Goa!” I would proudly state. I was aware of my ethnic heritage that came with mainly culinary differences from my peers, but I identified as Canadian just like they did. The implication here is that you get to choose your “tribe” and group that you identify with. While it is easy to be prejudicial given the “look” of someone, they may not identify themselves as part of the stereotype.

In our Optometry offices, we are working towards understanding diversity and being as welcoming and inclusive as possible. I feel it is totally fair game to inquire about somebody’s ethnicity. It is better to ask than to presume. Questions like “What’s your family background?” “Have you lived locally very long?” are acceptable when it comes from a place of inclusiveness. It is helpful as an eye doctor to understand family heritage as some ethnicities are predisposed to certain ocular diseases. Allowing for these inquiry conversations is an important part of “case history” and allows better investigations into potential threats to the patient’s vision.

Gender Identifications

During our online “Intake” process we allow patients to select their gender. We do not presume gender. We ask every patient what their preferred name is and use that name instead of “Mr. and Mrs.” We have done away with “men’s and ladies” frame sections and have used consultative questioning to elicit the patient’s style preferences. Learning more about the patient to better assist them with their frame choices is well received. Presuming gender may lead to hurt feelings and the patient feeling our doctors and clinic are “out of touch”. Being a clinic that is friendly and welcoming to everyone will earn a reputation for kindness and professionalism and also referrals.

Frame Choices for Everyone

It is important to have an eyewear gallery that has frames that suit the patient’s style choices as well as their face shapes. Certain sized frames and nose bridges are required for a frame to adequately fit some patients, so a deep selection is important. Eco-friendly frames, Indigenous created frames and brightly coloured frames are all part of a good selection that is inclusive and relatable to all our patients.

Ageism

As I become more “experienced” as a practitioner (28 years in practice as an optometrist), I have met so many amazing senior aged patients. Every day I am impressed and in awe of my senior patients. Many display a much younger spirit and ability than younger patients. I tell patients that it is my goal to have their good vision outlive them. It is absolutely possible to have 20/20 vision or “perfect” eyes and be 100. I have learned not to prejudge a patient based on their age. I certainly don’t want to be prejudged when I am a spry senior. Be understanding and kind and allow all elderly patients the opportunity to do tests that they can manage including visual fields testing for glaucoma. New technology such as head mounted testing devices will also assist those with limited mobility and posture constraints.

Training for the Team

Our team meets every week to discuss ways we can improve and learn. We survey every patient after their full exam and relay any patient recommendations for improvement to the entire team. If there were any less-than-ideal interactions, we learn how we could handle them better next time and contemplate strategies for service recovery.

Society is changing and so must we. The golden rule used to be “treat people how you would like to be treated”. We feel that is now archaic and the new platinum rule should be “treat people how they would like to be treated!”.

DR. TREVOR MIRANDA

Dr. Miranda is a partner in a multi-doctor, five-location practice on Vancouver Island.

He is a strong advocate for true Independent Optometry.

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3D Scan Technology vs. Clinic Methods: U de M Study Results Published

Differentiation | Business Strategy, Practice, Technology

Findings from a recently published empirical peer reviewed study conducted by the Université de Montréal (UdeM) unveils that the advanced technology Topology, used by New Look Vision Group, is the leading technology-supported purchasing method online.

Topology is a technology that uses the latest advances in 3D facial scanning and augmented reality to enable customers to take the necessary ultra-precise measurements needed to produce high-quality glasses.

The article, which has been published in the Journal Optometry and Vision Science, surveyed 30 people over 50 years old to test complex progressive prescriptions. It compared how three online eyewear retailers’ technology-based services (New Look powered by Topology and two major online eyewear retailers) fare against the U de M School of Optometry store. The research parameters primarily included the accuracy of the measurement, fitting and comfort upon delivery, and overall satisfaction.

The findings from the study uncover positive advancements in online prescription eyewear purchasing and identify Topology as a leading tool. Notable highlights include:

The quality of Topology’s measurements – namely pupillary half-distances and ocular height – is comparable to the measurements taken in person by UdeM eye care professionals.
Topology is the only technology that takes measurements for the production of personalized lenses (requiring a greater number of accurate measurements) when buying online.
Topology’s measurements are more accurate, allowing for clearer vision compared to two major online eyewear retailers.
Topology was ranked higher than the two other major online eyewear retailers by eye care professionals for frame adjustments to fit the wearer. In fact, with Topology, a personalized adjustment is made before shipping. New Look Vision Group is the only retailer to offer this service.
Overall, customers who use Topology technology to purchase prescription glasses online can benefit from an experience that is close to an in-person purchase in store.

The preliminary study results were released in November 2022 prior to publication.

The researchers concluded. “Basic lens centration measurements obtained with Topology compare well with those of opticians, but some aspects of the methodology for measuring personalization parameters could be improved. In comparison with two established online vendors, resulting measurements with Topology are more consistent. Initial wearer satisfaction with Topology eyeglasses was also better.”

“I am thrilled that an independent study confirms that New Look Vision Group’s app, which was conceived from a partnership with Topology, is the most accurate on the market. This represents years of extensive testing and a significant advance that will give confidence to people wishing to buy prescription glasses online, while providing an alternative solution with the same quality as in-store purchases.” says Jean-Michel Maltais, Senior Vice President Omnichannel, New Look Vision Group.

“This new technology from Topology represents a significant advance in the industry, compared to the traditional model of buying glasses online. The basic parameters allowing the production of quality progressive glasses are comparable to those obtained in-store. It is also likely that the higher visual comfort provided by Topology, compared to the other online retailers evaluated, is due to its ability to take measurements for the production of personalized lenses. This technology presents online eyewear shoppers with numerous advantages compared to what existed before and performs better on many levels.’’, mentions Nicolas Fontaine, Optometrist and University lecturer and researcher at the Optometry School of Université de Montréal.

“People are increasingly looking to online methods of shopping, and the app represents a new type of interaction with your mobile phone. It uses the latest 3D technology to scan 30,000 data points on a person’s face, taking ultra-precise measurements. This level of precision ensures a high-touch consumer experience, custom-fit frames (customer’s choice) and optimal comfort”, says Dr. Schwirtz, Optometrist and Vice President Innovation within the New Look Vision Group.

Digital health technologies are improving access to healthcare services for more people than ever before. Consumers now have more reliable options to choose from, and the comparative study by UdeM shows that New Look Vision Group’s app powered by Topology, which is available from its banners New Look, IRIS and Greiche & Scaff, is helping to transform the eye care industry by allowing customers to confidently shop for prescription eyewear from the comfort of their own home.

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A Guide to Overcoming Optometry Board Exams: The Last Hurdle

NextGenOD

Congratulations, aspiring optometrists!
As you begin the second half of optometry school, you are likely starting to feel the weight of not only making sure you make it through all your courses and clinic rotations, but also passing the board exams.

These exams are crucial milestones in your journey towards becoming licensed practitioners. To help you navigate this challenging process, we have compiled a comprehensive guide with key tips and resources to aid you in your preparation for the optometry board exams.

While optometry board exams in both Canada and the United States share the common goal of assessing your competency in the field, there are some notable differences in their structure and content.

In the US
The National Board of Examiners in Optometry (NBEO) administers board exams in the US. The exams consist of three parts: the Applied Basic Science (ABS) Exam (Part 1), the Patient Assessment and Management (PAM) Exam (Part 2), and the Clinical Skills Examination (CSE, or Part 3).

Part 1 focuses on your fundamental knowledge of ocular anatomy, disease, pharmacology, optics, and more. It ties together all the coursework you have gone through in your didactic lessons.

Part 2 evaluates clinical decision-making skills, much like seeing patients in clinic, where you are provided with a series of case presentations and questions are asked based on each case that assesses your knowledge of ocular and systemic disease, as well as patient management and care.

Finally, Part 3 assesses your practical clinical abilities in a series of four stations, each testing a different set of clinical techniques. These exams are designed to ensure that you possess the necessary knowledge and skills to practice optometry independently.

In Canada
Ten provincial optometry regulators such as the College of Optometrists of Ontario (COO) and the College of Optometrists of British Columbia (COBC) conduct the exams under the auspices of the Optometry Examining Board of Canada (OEBC).

The board examinations in Canada consist of only two components – one written, and one practical.

The written exam assesses your theoretical knowledge in areas such as ocular disease, pharmacology, and optometric procedures.

The practical component, called the Objective Structured Clinical Exam (OSCEs), evaluates your clinical skills, with a particular focus on critical thinking, communication, and patient management.

It is essential to familiarize yourself with the specific requirements and exam formats established by the regulatory bodies in the province or state where you plan to practice. Be sure to consult official resources and communicate with your faculty and mentors to obtain accurate and up-to-date information on the optometry board exams in your desired jurisdiction.

Key Tips for Board Exam Preparation:

Start Early! Begin your preparation well in advance to allow ample time for review, practice, and consolidation of concepts. For example, for the NBEO, three to six months is typically recommended prior to your examination date. For some optometry schools, you may not be able to take time off prior to your exam date, so more time should be allocated in advance to account for ongoing midterms, clinical evaluations, and other commitments.Some students may consider taking written exams at the later date that is offered to allow for more time to study; however, consider that the earlier you schedule your exam, the more time you have to account for unforeseen circumstances, such as needing to retake or reschedule an exam.

Both the NBEO and the OEBC offer multiple examination dates:

Click to view the NBEO schedule (USA)
Click here to view the OEBC schedule (Canada).
Create a Study Plan: Develop a structured study plan, allocating time for each topic based on its weightage in the exams. Break down the material into manageable sections to avoid feeling overwhelmed.Many boards preparation programs create daily schedules for you to follow, but keep in mind that you may need to adjust this based on your own schedule and to account for areas you may find more challenging.Moreover, optometry school is a busy time in your life, and it’s key to incorporate ongoing events such as midterms, conferences, or social events into your study schedule so you can recognize which weeks you should be packing in your studies and which weeks you may need to prioritize other commitments.

That being said, keep study schedules realistic – if you know you can’t review 50 pages in a day, don’t set yourself up for failure right from the start!

Don’t Study Alone: Collaborate with your peers to discuss and review topics, exchange study materials, and challenge each other with practice questions. Particularly for practical examinations such as the NBEO Part 3 and Canadian OSCEs, it is crucial to practice and engage in roleplays with your peers to identify areas of difficulty or to have others point out areas of improvement.Aim to schedule practice sessions with your peers! You may find yourself exposed to more points of view and different ways of presenting information which can be helpful not only in your practical exams but also as a future practitioner.
Make Boards Prep a Daily Habit: Consistent practice with sample questions and mock exams will help you build confidence, improve time management, and identify areas that require further attention.No one starts out completely ready to tackle board exams – rather than intelligence and talent, boards prep is ultimately a journey of preparation! Boards preparation should also be part of your daily time spent in clinic at school – remember to ask your professors and clinic supervisors whenever you are encountering a new difficulty or hurdle with a patient. Your time spent in clinic will pay off in the exam room!
Seek Mentorship: Reach out to professors, optometrists, or alumni who have successfully passed the board exams for guidance and mentorship. Their insights can be invaluable in understanding the exam format and content, particularly as the NBEO and OEBC may be vague in their rubrics or their guidelines.Students who have recently taken their board exam will have a fresh recollection of their experiences, but take others’ advice with a grain of salt as everyone’s studying process is ultimately unique and something that may work for another student may not be ideal for you!

Using Available Resources:

Textbooks and Study Guides: Many students opt for their old lecture notes, or classic textbooks such as the Will’s Eye Manual which are excellent resources to reinforce your understanding of core concepts.Moreover, podcasts can be excellent guides for students who are commuting to clinic externships – Eyes for Ears by Dr. Ben Young and Dr. Andrew Pouw provides a comprehensive review targeted for ophthalmology board exams but provides many clinical insights to optometrists!
Boards Prep Programs: Numerous online platforms offer comprehensive study materials, practice questions, and interactive learning modules. OptoPrep (optoprep.com) and KMK Optometry (www.kmkoptometry.com) are two popular platforms that provide tailored board exam preparation services. They offer subscription-based access to their resources, including study materials, practice questions, and simulated exams.
Exploring these platforms can significantly supplement your preparation.

Leveraging Published Case Studies and Topic Reviews: In addition to textbooks and online resources, incorporating published case studies and topic reviews into your board exam preparation can significantly enhance your understanding and application of optometry concepts.

Your time spent first-hand with patients in clinic is invaluable for boards preparation, but ultimately a limited exposure to all the conditions and management strategies in the field. Therefore, it is highly recommended to immerse yourself with more case studies and topic reviews to solidify your knowledge for topics you may not have had the chance to experience in clinic.

CRO offers original case reports and topic reviews.

One valuable source of such materials is the Clinical & Refractive Optometry (CRO) Journal,

This journal provides a wide range of free articles covering salient topics in optometry. The articles in the CRO Journal present real-life scenarios, clinical challenges, and topic reviews that can improve your critical thinking and problem-solving skills. By reviewing these case studies and topic reviews, you can gain insights into the practical aspects of optometry and apply theoretical knowledge to realistic patient scenarios.

The CRO Journal can serve as an excellent complement to your study materials, allowing you to broaden your understanding and stay updated with the latest advancements in the field.

Students can create a complimentary student account which also provides access to the self-testing quiz included with selected courses. (Contact support@CROJournal.com).

Preparing for optometry board exams requires a disciplined approach, a solid study plan, and access to reliable resources. By starting early, engaging in study groups, exploring online platforms like OptoPrep and KMK Optometry, enrolling in review courses, and leveraging published case studies and topic reviews, including those found in the Clinical & Refractive Optometry (CRO) Journal, you can develop a comprehensive understanding of optometry concepts and sharpen your clinical reasoning abilities.

Remember, success in board exams requires a multifaceted approach that combines diligent study, practice, and the exploration of diverse resources. With careful preparation and a proactive mindset, you are well-equipped to excel in your optometry board examinations. Best of luck on your journey to becoming licensed optometrists!

Related Read
Alex Hecht, UW Class of 2021 Shares her journey writing the NBEO exams as a Canadian OD student.

Writing NBEO Exams as a Canadian Optometry Student

JENNY LEE, OD

Vision Science Assistant Editor, CRO Journal

Jenny Lee is an onboarding resident with the University of Waterloo School of Optometry and Vision Science.

She is a recent 2023 graduate and is passionate about pediatrics and vision therapy.

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