There is a never-ending debate around the best investment you can make. Is it the cheapest management fee? Longest track record? Dividend-paying stocks? The list is endless.

 

In my view, the answer is deceptively simple – the best investment you can make is whatever you won’t panic and sell at the wrong time.

 

I am sure there is a theoretical, mathematically “optimal” investment that calculates the perfect mix between stocks and bonds and global markets. The point is - that investment is worthless to you if you are inclined to sell it when it falls.

 

As an Advisor I am always researching and showing clients new ideas and approaches in an effort to improve returns or reduce risk (hopefully both!). That said, you need to make sure that you are committed to the approach before you make a change because how you react when it under performs (and it will under perform at some point) is what ultimately determines the results.

 

Bottom line: what you are doing may not be considered text-book perfect investing, but if it will keep you invested and help you to avoid panic, then that is the best investment you can make.

 

If you would like a second opinion on your current portfolio or approach to investing, please feel free to reach out by phone (416.231.6528) or email (jeff.ker@rbc.com).