When it comes to investment and financial management, a strong foundation and efficiency in our processes are everything. That is why we, at the Kozak Financial Group, find ourselves spending the majority of our time focused on topics other than portfolio management and stock picking. Anyone can hold themselves out as an active investment manager who picks stocks in an attempt to beat the market, what we have done is creates strategies, with the aim of performing well in various market conditions. We have created our income-oriented portfolio to provide our clients with the foundation upon which to build the rest of their financial plan. This allows us to focus on the vast majority of other concerns our clients have when it comes to their money. As a result of our efficient systems, our time is divided into two fundamental segments: investment and portfolio management (25%), and financial advisory services (75%). So how is it that we are able to focus so much of our time on client service? The secret is the efficiencies we have built along the way.

Investment and portfolio management – the 25%

            If you are a follower of the Kozak Financial Group, our investment approach and philosophy will come as no surprise. Our portfolio is configured with the aim of producing quality income streams. Investing with an income focus provides our clients with a reliable income stream to fund their retirement withdrawals and allows their principal to continue growing in the background. Portfolio growth and regular dividend increases can self-adjust the portfolio for inflation. Income generation, before retirement withdrawals begin, amplifies portfolio growth through regular reinvestment Income reinvested back into the portfolio can cause the income stream to grow even further, this compounding income puts our “pre-retirement” clients in the enviable position of perpetually buying into the markets, not having to time their investments.

            Investing is no small feat. We have built for ourselves an efficient system that allows us to allocate capital assuredly. Investment selections and allocations are carefully considered to meet our clients’ objectives, as well as our own stringent criteria. Constant vigilance over our investment portfolios reassures us that the investments we have selected continue to meet our clients’ goals for their portfolios. We each only get one shot at retirement, so it is paramount that we get it right the first time. Without consistent and sound portfolio management, the rest of our clients’ financial concerns would be mute. An efficient and strong foundation allows us to focus more of our time on the financial concerns we can control. Markets are never predictable; thus our objective is to construct a healthy income stream and allow the markets to ebb and flow around us. Meanwhile, we collaborate directly with our clients and their other advisors in counselling them on their financial decisions, improving tax efficiency for the long haul, and administering their investment portfolio with precision and expedience.

Financial Advice – the 75%    

            Building upon the foundation of a well-oiled portfolio, our clients also enjoy the benefits of all the other work we do for them. Client counseling is a large component of that work. Counselling to help balance the emotional side of investing with the rational side getting our emotions out of the way so we can focus on the fundamentals of investing is key to long term success. It only takes one bad decision in the heat of the markets to send an investor way off track, so we need to help our clients get through the worst of down markets and importantly, take advantage of up markets. Counselling also means helping them to make decisions not driven by stocks and bonds. Starting CPP and OAS, meeting family goals and objectives, looking at their financial picture from an objective perspective, and facilitating lifestyle changes as our clients transition from being business owners, professionals, and employees into being retirees are all parts of the “nuts and bolts” counselling that we do to ensure our clients experience a smooth and seamless financial life that stretches from saving for retirement all the   way to enjoying the fruits of their labour throughout their careers.

            Investment returns and sound financial decision making can all be undone if not for good tax planning. We work directly with our clients’ tax advisors to ensure we are up to speed on their specific tax situations. The complexity that comes along with making a tax efficient investment portfolio, effectively planning for tax impacts, and accounting for outside factors is immense. Accounting for the tax decisions being made by our clients allows us to fine tune the investment portfolio and the rest of the counseling we do for our clients. This can include decision making around accounting for all income sources, timing of government benefits, and managing the taxability of non-registered assets. All the hard work managing a good quality portfolio can be undone by a lazy approach to investment taxation.

            Finally, we wouldn’t be doing our jobs if providing these services to our clients wasn’t seamless. It isn’t just important that we get the decision-making right, it is also key when decisions get made, the administrative follow-up happens quickly and effortlessly on behalf of our clients We expect that cash gets invested in a timely manner, withdrawals to the bank account show up on time, and  client questions get answered accurately. We strive for excellence in our account administration; we are doing well when our clients don’t even notice the administrative work that goes into maintaining their accounts.

            In the end, constructing and maintaining our clients’ portfolios is like building a house. The investment portfolio is the foundation upon which all else is built. It needs to be built well such that all that comes after it will be secure in its footing. Next, we frame the house with our client counseling. In all facets of our clients’ financial lives we act as their advisor, every conversation had, and decision made, represents more framing that makes up the structure of the portfolio. Tax efficiency is akin to plumbing, electrical, and HVAC, without it, an investment portfolio is a useful tool, but with it we take our clients' portfolios from shelters to houses. Finally, the account administration is the finishing. In a well-built house, none of the foundation, framing, or internal systems are noticeable because the house is finished seamlessly with careful consideration for how the homeowners will live in the space.

            Our approach is designed to make this entire process easy and approachable for all investors. Our investment philosophy is designed to work in all stages of life, and the well-structured approach means that we can focus on the finely detailed work of fitting an investment portfolio to the lifestyle of a specific client. If you would like to learn more about our approach, get in touch with us at www.kozakfinancialgroup.ca or by calling 403-266-0158.