Proven, time-tested strategies to reach your goals
Individual investors often allow emotions to drive their investing behavior. Investors tend to follow the market or current popular investing trends, allowing emotions to override rational investment fundamentals. The negative impact of emotion-driven investing upon long-term wealth can be devastating. At Bergen Wealth Management, we implement well-thought-out and time-tested strategies to take the emotion out of investing.
Establishing an asset allocation plan is the first step toward developing a disciplined, long-term investment strategy. An asset allocation plan should reflect an investor's unique investment profile, based on personal circumstances, including wealth, investment horizon, tolerance for risk and financial objectives. An asset allocation plan reflecting an investor's unique investment profile can serve as a helpful blueprint for pursuing financial goals. Approximately 80% of portfolio performance is attributed to asset allocation.
Generally, portfolio rebalancing reduces risk. Regular reviews of portfolio weights and implementing a portfolio rebalancing discipline is an essential part of the ultimate success of an investment plan. With regard to the asset allocation approach, rebalancing mechanically forces investors to do exactly the opposite of what their emotions would have them do. It involves purchasing securities that have underperformed and selling securities that have performed well over the investment period. Selling securities that have appreciated and purchasing securities currently out of favour enforces the 'buy-low, sell-high' principal.
At Bergen Wealth Management, we believe in 'getting paid to wait'. We have access to top-ranked, award-winning, research from RBC Capital Markets, that covers every major sector and company in Canada, plus selected companies around the world. Our research department helps us identify viable and sustainable rate reset preferreds, convertible debentures, and high paying dividend stocks to take advantage of the dividend tax credit. In addition, we have access to the largest inventory of fixed-income investments. This includes investment-grade corporate and government bonds, and Guaranteed Investment Certificates (GICs) from 30+ institutions with full CDIC coverage.
It is nearly impossible to time the performance cycles of different investment categories. Establishing an asset allocation strategy and rebalancing regularly to preserve that strategy can introduce more discipline into an investment plan. Having a solid investment plan helps investors stick to their goals; this in turn increases their chances of achieving their long-term investment objectives.
"You have a tremendous investment advantage when you have a rational investment policy in an irrational world"
- Charles Brandes
