Long Term Investment Planning
Toronto Investment Advisor
We help you manage your investment accounts.
Investment Advisor Principles
Investing Principles For Long Term Portfolio Performance
5 Steps To Working With An Investment Advisor
Step 1. WHERE DO YOU STAND WITH YOUR PORTFOLIO TODAY?
Is your investment portfolio satisfactory to you and working as it should to fulfill a particular aspect of your financial plan. What type of returns do you need or expect to meet your goals. Are you taking too much risk? Are you satisfied with your returns? How can we make adjustments to get you there?
Step 2. WHAT IS YOUR RISK APPETITE AND TIME HORIZON?
Are you taking too much risk by concentrating your investments in one sector like energy or perhaps you should be taking more risk for growth but you're invested in fixed income? Do you have 20 years to retirement but your investments are too "conservative"?
Step 3. WHAT IS YOUR INVESTOR LIFE STAGE?
Depending on what stage you're in, it determines how we recommend you ought to invest to get the most out of your portfolio. Are you in your early investing years or perhaps you're in high income earning years and looking to build a large enough nest-egg.
Step 4. WHAT IS YOUR PORTFOLIO OBJECTIVE?
As an investment advisor our main role is helping you apply the right behaviour over the long term so you avoid mistakes. It helps first that you are aware and comfortable with what your goal is to then understand why we recommend certain investments or philosophies.
Step 5. IMPLEMENT, ADJUST & REBALANCE
Why is an investment advisor valuable? Simply because we help you make decisions and behave in a way that won't be detrimental to your investment performance and growth over time. Most people know how to implement or buy investments. The hard part is knowing how to adjust or rebalance your portfolio in an effective way.
Timing The Market: Why Most Investors Never See Long Term Investment Gains.
As an investment advisor one of the main pillars of investing we try and instill is that "time in the market" is much more effective than timing the market. Most investors will typically buy an iPhone or TV on sale.
Unfortunately, when it comes to investing, because of herd mentality but mainly timing the market, most investors buy when investments aren't on sale. The result is buying investments at all-time highs rather than on sale.
The Under-Appreciated Value of Investment Asset Allocation
Did You Know That 90% of Your Investment Performance Is Determined By Asset Allocation? 10% Is Determined By Other Factors.
What Is Investment Asset Allocation?
Being an experienced investment advisor in Toronto we see many Canadian investor portfolios sensitive to changes in the economy because of being heavily invested in companies in the energy and banking sectors that raise investment risk exponentially.
Asset allocation is a way to manage your investment risk through diversification among major asset classes and sectors which have different levels of risk and return potential. Since we can't guess which sector/class will perform better in any given year or guarantee against investment loss, it's important to diversify through asset allocation.
When you select investments for your portfolio it's important to choose different classes and sectors then keeping those within a certain percentage of your portfolio. Our expertise as investment advisors is helping you select investments as well as the percentages that take into account your risk appetite and time horizon.
In general, equities perform better than cash or interest bearing investments. The table below is an example of what your returns would have been after 10 years if you stayed invested versus keeping your money in cash or bonds after the 2008 financial crisis.
10 Yr Returns
Source: Thomson Reuters, 2018. December 31, 2007 to December 31, 2017
Remove Emotions & Timing From Investing With Dollar-Cost Averaging
The reason why some investors time the market is because they don't know when to buy at what prices. To avoid this, start by selecting the right long-term investments in different sectors. Then apply dollar-cost averaging. This involves investing a fixed amount e.g. $500 at regular monthly intervals. So you avoid timing the market or being emotionally invested (no pun intended). Ultimately, the goal is to buy more of an investment when prices are lower and fewer when they are higher which averages out over time.
You have a fixed amount of money you're putting away towards your savings but you don't want to make decisions every month about where and how to allocate your money.
Use dollar-cost averaging by selecting the investments you want to put your money into. Divide your money appropriately by investment type, sector and the percentage to manage risk.
Information Request Form
Don't know where to start?
Schedule a 15 minute call with us.
Investment Advisor Difference - Portfolio Rebalancing
Almost anyone can buy investments especially when market sentiment is high. The difference and discipline comes from knowing when and how to rebalance your portfolio on an annual basis. That's one of the most ignored but important values of an investment advisor like Blue Alpha Wealth.
Ensures Your Target Investment Mix Is Still Appropriate
Based on your financial plan and risk tolerance, you start with a target mix. Over time as your investments grow or certain sectors underperform it's important to rebalance.
Improves Your Investment Returns By Adapting To Market Conditions
When investing you should try your best to be dispassionate but follow the objective market indicators. If your goal is to have growth and reduce loss, rebalancing will improve your returns.
Reduces Investment Risk To Your Portfolio And Reduces Overconcentration
A big issue we see as investment advisors is people setting and forgetting their portfolio This ignores market conditions and leads to being concentrated in one investment type or sector.
Where is your money invested? Cash, fixed income, equities, Canada? Do you have a specific investment plan you understand? Do you feel it can be adjusted to better align with your goals? Are you paying attention to the amount of risk you're taking based on your time horizon and investment goals? We'll give you an objective view of what you are currently doing and briefly tell you our philosophy and how it can benefit you
How long can you go without your income or paycheque? How will it affect your lifestyle and your ability to plan for the future, let alone invest? Disability income insurance is insurance for your ability to earn an income in the event you can't work if you're sick or get injured. Get disability insurance for your specific occupation and the type of activities you perform in that occupation.
Why are you investing and why do you feel professional advice can help you? Have you attached specific goals to your money and how important is it that you reach these goals? This helps us understand what you're planning for and what steps best suit your situation and risk profile.
Are you curious about the fees you're paying or perhaps more aware given the media attention? Do you like the idea of portfolio management from experienced money managers that gives you access to different types of investment options typically used by institutions and pension funds? We can help you with this and show you the benefit of discretionary portfolio management.
Have you made yourself prepare for the fact that your retirement could last 20 to 30 years after you receive your last paycheque? It probably hard to consider that if retirement is a few years away but if its 5 to 10 years away it may be top of mind. Either way, the best way to secure a worry-free retirement is to set yourself up with some form of lifetime guaranteed income to cover your basic fixed expenses in retirement. This makes or breaks your retirement as worry about outliving your savings is the number one anxiety people have once they retire. We can project for you when you are likely to achieve financial independence given your savings and spending, and we adjust to get you to that retirement number only you know will remove anxiety.
Accumulation of your nest-egg and investing are usually the fun and easy part when it comes to building portfolios and attaching those to a particular financial goal. However, taxes, if ignored, can easily derail your plans or at least erode away at the progress you make if not planned properly. We maximize opportunities and tax savings tools by looking for ways to optimize your financial plan to minimize income taxes.
We offer group retirement plans with a capped management fee allowing more of your employees money to stay invested while investing in one of the worlds largest asset managers. It also allows administrators to manage the plan digitally and with less paperwork and hassle. This fully digital platform is 100% free for employers, and it means no more paper work, a simplified on boarding process, and access to professional financial advice from Blue Alpha Wealth.
Where Is Your Money Invested?
Curious About Getting Started?
Blue Alpha Wealth