In order to succeed, you must first understand the obstacles to overcome:

 

Your Future Begins Here:
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Top 6 Retirement Risks

  • Longevity Risk - Outliving your money after retirement
  • Inflation Risk - holding investments that do not protect your purchasing power
  • Taxation Risk - not maximizing legal tax shelter accounts & capital-gain investments
  • Insufficient Savings Risk - overspending on current personal consumption
  • Naïve Diversification Risk - thinking you are diversified by investing in similar investments with different firms or managers; Ex. ABC Bank Balanced Portfolio + DEF Bank Balanced Portfolio
  • Emotional Biases - using emotional rules-of-thumb, or engrained prejudices, to short-cut thoughtful decision-making on money matters

 

 

Top 5 Behavioral Bias Risks:

  • Familiarity bias - investing only with, and in areas you are familiar with such geography (Canada), or companies you recognize such as telecom stocks or bank stocks; or with familiar institutions such as big-5 banks
  • Recency bias - over-emphasizing recent events to explain the near future, rather than placing information into historical context; Ex. Market crashed last year therefore another crash is imminent
  • Endowment bias - investors psychologically value current investments over investments they don't own
  • Inertia or Status Quo bias - faced with new information or a wide variety of options, investors choose to keep things the same, and thus creating 'opportunity cost' from missing out on better investment strategies
  • Regret Aversion Bias - avoiding changes for fear of making a wrong decision

Your Future Begins Here:
Request a FREE portfolio and retirement risk analysis
info@med-wealth.ca or call 905-568-2000

 

 

How to Build a Better Portfolio

 

 

Your Future Begins Here:
Request a FREE portfolio and retirement risk analysis
info@med-wealth.ca or call 905-568-2000

Understand the 4 Most Important Factors for Wealth Accumulation & Preservation

  • Time - it takes time for money to compound - the longer it is invested, the greater the growth - this is also referred to as the 'magic of compound interest'
  • Amount of Savings - you cannot create growth without the seeds of initial and ongoing investment. The more you save the more you will have over time.
  • Rate-of-Return - the Rule of 72:
    • Dividing an investment's rate-of-return into the number 72 will tell you how many years it will take your money to double. Ex. 72/6% = 12 years.
    • If you have a 36 year career, your money will double just 3 times. Ex. $100,000 x 2 x 2 x 2 = $800,000.
    • If instead your money were able to grow by 12% annually, then 72/12% = 6 years to double. Over a 36 year career that is 6 doubles which extending the example from above = $6.4 million!
  • Portfolio Boost - Allocate up to 40% of your portfolio to a more concentrated, growth-oriented investment strategy for potentially much higher returns.

 

 

Stop Accepting Mediocrity

Cookie-Cutter Portfolio Solutions

  • Over the last 25 years or so, the financial industry in Canada has commoditized their investment solutions into 'all-in-one' portfolios. Most people's risk tolerance lands them in a typical 'balanced fund' allocated 60% to stocks and 40% to bonds
  • Future return expectations - the balanced portfolio solution does not consider that bonds no longer offer attributes and benefits that they historically provided.
  • Near-Zero interest rates and the potential for rising interest rates and inflation in the future make bonds a poor investment diversifier, relative to historical experience.
  • Lower expected returns means - the inability for investors to achieve their retirement objectives
  • When solutions are all constructed using the same strategies, the only differentiation becomes 'price' - i.e. the management fee.
  • The only advantage in such an environment that can be sought is from 'lower fees'. Thus the increased competitive alternatives that focus on fee-reduction.
    • This is a fallacy. Lower fees don't necessarily result in higher returns. It depends on portfolio construction and investor's behavioral responses to market events and risks

Your Future Begins Here:
Request a FREE portfolio and retirement risk analysis
info@med-wealth.ca or call 905-568-2000

 

 

Why Deal Directly with a Portfolio Manager

 

 

Your Future Begins Here:
Request a FREE portfolio and retirement risk analysis
info@med-wealth.ca or call 905-568-2000

  • The vast majority of individuals licensed to provide investment advice in Canada exercise limited influence on portfolio composition and performance
  • The principle difference between an investment advisor and Portfolio Manager is the latter's ability to exercise discretionary authority in making trades rather than seeking approval for each trade.
  • This fact makes adding value from a potential return perspective more plausible with a Portfolio Manager than with an investment advisor.
  • Bank branch advisors have a limited skill-set, training and knowledge, and recommend only their own bank's product-line
  • Big-bank brokerage firms or investment dealers -
    • licensed advisors are better trained but are still limited to recommending in-house 'Private Wealth portfolio solutions' centrally managed by the institution or well-known retail mutual funds.
    • These advisors are relationship managers that help with financial planning issues and selection of your overall portfolio's asset mixture between stocks and bonds, based on a standard questionnaire. An important role - they have limited capacity to create superior investment-returns due to a lack of discretionary authority
  • A Portfolio Manager (PM)
    • holds the highest licensing designation offered by industry regulators, requiring higher industry-focused, educational (CIM or CFA) and experience credentials.
    • CIM = Chartered Investment Manager; CFA - Chartered Financial Analyst
    • has the ability to use discretionary authority in the creation and management of customized model portfolio solutions; thus possessing the greatest ability to potentially enhance portfolio-performancepossessing the greatest ability to potentially enhance portfolio-performance
    • Only a small fraction of all investment-industry licensed individuals hold the Portfolio Manager (PM) designation
    • A higher standard of care:
      • Regular Investment Advisors (IAs) only need to ensure an investment recommendation meets the 'suitability requirement' (based on objectives, time horizon and risk tolerance).
      • Portfolio Managers - Fiduciary Duty - portfolio managers must always make decisions that are in the best interest of the client, in addition to ensuring investment suitability

 

 

John Soutsos, CIM, EPC, Portfolio Manager

  • Uniquely constructed model portfolios with multiple options for all levels of investor risk-tolerance and objectives
  • Employing portfolio management strategies and techniques that have historically demonstrated superior returns than industry-standard 'cookie-cutter', all-in-one portfolio solutions
  • Incorporates a defined-allocation to a 'Portfolio Boost' strategy that incorporates the growth-potential of the healthcare industry, coupled with the risk-reduction attributes of the consumer staples industry.
  • Includes services such as retirement and estate planning (IPC Estate Services); as well as tax-efficiency and financial planning guidance.
  • Coordination of private banking*, accounting and tax preparations services.
  • Entry point at $500,000 per household
  • 30-years+ industry veteran with exceptional knowledge of economic and market history
    • Supported by next-generation succession strategy

* Private banking for medical professionals offered through National Bank

Your Future Begins Here:
Request a FREE portfolio and retirement risk analysis
info@med-wealth.ca or call 905-568-2000

 

 

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