Behavior Management
Our team has collectively reviewed thousands of portfolios over the years; the single biggest problem invariably comes down to the investor’s own bad behavior. About 90% of the investment and portfolio related issues we encounter are due to: a) lack of discipline; b) inaccurate thoughts/frames of reference; c) emotional factors.
We have developed an expertise in investor behavioral issues. Many of the things we do are designed to address them. Our portfolios are built to attempt to avoid the major disasters that make “Buy & Hold” so difficult to endure. There is a substantial behavioral component to much of our work, by design.
Communication / Understanding
Investment-related noise can derail even the most disciplined investor. We help clients screen out that noise through a program of client-only communications that focuses on process over outcomes.
Bad indicators, poor interpretation of economic data, geopolitics, cognitive errors, bias, myths, and more all come under our scrutiny.
Our team, all spend a lot of time making sure our clients can separate fact from “fake news.” It is that much easier to stick with a long-term plan when you are not constantly distracted by nonsensical memes.
Financial Plan + Updates
Speaking of which, we integrate portfolio management into a financial planning process from Step 1. It is not an afterthought, but rather, a key part of how we work with clients. This gives a purpose and focus for what can be accomplished with capital. Money is a tool; when used properly, it can create some wonderful things.
The plan also helps eliminate some of the worst investor behaviors we encounter. Without a plan, what is it you are deviating from? How do you understand if you are on track or not? Having a frame of reference beyond market swings is enormously helpful.
Better Portfolios
Similar portfolios typically perform with returns falling within a tight range. We believe our portfolios are better than most. Our investment team continually play devil’s advocate with each other’s ideas to determine why or why not ideas should be part of your holdings.
We have collectively over fifty years’ experience around thinking about the optimal way to assemble, manage and run portfolios.
Cost-effective Implementation
We think hard about how to remove costs from our investments. We strive to find the most cost effective ways to do things on your behalf, and when we do not have the expertise, we look to find the best provider for the services you require to meet your needs.
Constant Monitoring/Updates
We constantly review portfolios to assess that it is doing what it is supposed to. We stress that Financial Plans are kept up to date when life events change your financial position.
Doing this can be very challenging for individuals. It is time consuming, it is boring, and most of the time, nothing new happens. Separating noise from genuine issues is hard. It always involves changes in clients’ circumstances, and never comes as a response to market conditions.
Professional Network
Our experience in working with clients who have similar needs to yours means we have a deep network to tap into. These are the professionals who can assist you at various points in your financial cycle.
We have worked with clients who needed trust and estates attorneys, insurance professionals, secured lenders, real estate experts, bankers to help sell a company, accountants, legal experts, funders, and others. We are never paid a fee for referrals; these simply are professionals we have had good experiences with, and are happy to share with our clients.
Portfolio Rebalancing
Our approach is a simple rules-based process that we have optimized to maximize returns and reduce costs, while taking on no additional risks. This is one of the rare “free lunches” in investing
Tax Management / Tax Loss Harvesting
We focus continually on how to manage tax consequences of execution and portfolio management. It is not an afterthought, but built into many different parts of our process, from fees to rebalancing. The net result is lower total costs to the investor.
Spending Strategy (withdrawal)
This is a widely overlooked aspect of the financial plan: We advise clients on when to take Canada Pension and when to potentially stop working.
People spend so much time saving and investing that they can lose touch with the purpose of their portfolio. Managing the withdrawal portion of an investment life cycle is a key aspect of what we do for clients.
