By Monica Mazun
You know how online recipes often start with a long intro before listing ingredients? The never-ending scrolling can be annoying – especially when you’re in a rush – but those intros are often worth the read and usually offer helpful tips for how to improve the final dish.
So here’s my version of that intro for a recipe for managing your wealth, one that includes: using high-quality ingredients, paying attention to detail, and following the plan usually leads to success. While some recipes allow for substitutions, a solid investment plan needs a trusted advisor who builds a portfolio tailored to your goals.
Ingredients:
1 Investment Advisor who can provide precise advice tailored to your needs
1 Medium sized team who help support the advisor (this can be in the shape of multiple advisors on the team, as well as support staff)
1 Financial Plan that encompasses numerous scenarios/projections and is dynamic during the baking process
3-7 Investment Accounts (non-registered, RRSP, TFSA, RESP, FHSA, corporate account, etc.) to ensure efficient tax strategies and allocation optimization
1 Investment Portfolio filled with well diversified securities in line with your risk tolerance, time horizon, and financial goals
Dash of personality
Optional (but highly recommended):
Access to a Tax & Estate planning team for more complex or in-depth plans.
Insurance policies (if it makes sense for you and your plan).
Instructions and baking time:
Communicate your goals and ideas. Don’t worry – there is no risk of oversharing!
Combine all ingredients and let everything simmer for as long as you need. Building investment portfolios and financial plans take time.
Make sure your advisor has explained what you’re investing in and why. Ask questions. What modifications could be made to improve the result?
Review the ingredients on a regular basis and meet with your advisor annually at a minimum, to go over your plan’s performance and any life changes or updates. Once your plan is thoroughly baked, relax and enjoy your return on investment!
Different people might want different things out of their recipe, so it’s important to discern whether you’re looking for a recipe for the ‘best banana bread’ out there, or the ‘easiest banana bread.’ Any worthy advisors will want you to have an easy experience, and they’ll invest the time you need with them, without ever compromising on quality behind the scenes.
