SUISSE News Winter 2023
Banking / Financial
December 2023

Ignore the Noise – Focus on Wealth Management

By Brett Berman, MBA, CFP®, FCSI®, CIM®   


 
After health, wealth is the next most fundamental component for your wellbeing and happiness.       

We are relentlessly inundated with information from the financial press, online pundits, advertising, and a multitude of other sources.
It’s not easy to find clarity among the clutter.  

This author’s approach is to focus on four key factors: 

  1. comprehensive financial planning, 
  2. risk management, 
  3. tax optimization, and 
  4. an investment philosophy that prioritizes strategic asset allocation.   

the Plan to Prosper[1] process  

 

As Yogi Berra[2] famously said:
…if you don’t know where you’re going, you’ll end up someplace else…​⁠”.

Financial Planning is an opportunity to take charge of your future – by articulating and quantifying your life goals.

A well constructed plan becomes a guide and a roadmap which shows the way for you to achieve your goals.

FP Canada describes Financial Planning[3] as taking a holistic, big picture view of you, your lifestyle, and your financial needs and priorities. Without this broad approach, it’s like trying to see out a window with the curtains half-closed. You need the full view to understand and make the right decisions about every aspect of your finances. A comprehensive financial plan covers every area of your financial life, from investments and real estate to insurance and retirement planning.  

Research[4] has consistently shown that the mix of assets in broadly diversified portfolios is by far the greatest determinant of both total returns and return variability over the long term.
Over time, more than 90% of a portfolio’s return variability can be explained by its strategic asset allocation. Conversely, short-term tactical investment decisions, such as market-timing and security selection, had relatively little impact on return variability over longer time frames.

The Importance of Asset Allocation[5]        

 

Care to learn more?
I invite you to download my free 5-Step Financial Planning Guide at: www.PlanToProsper.ca      

[6]

FOOTNOTES:
  
  1. https://www.BrettBerman.ca
  2. https://baseballhall.org/hall-of-famers/berra-yogi
  3. https://www.financialplanningforcanadians.ca/financial-planning/do-you-need-a-financial-plan
  4. https://corporate.vanguard.com/content/dam/corp/research/pdf/Vanguards-Framework-for-constructing-globally-diversified-portfolios-US-ISGCGP_062021_july12-update_Online.pdf
  5. https://www.jstor.org/stable/4479432
  6. PI Financial Corp. is licensed as a broker-dealer in all provinces and territories of Canada and is a member of the IIROC and the Canadian Investor Protection Fund. The article is not intended, and should not be construed, as a solicitation of customers or business in any jurisdiction in which we are not registered as a dealer in securities.
 
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