It All Adds Up

Dec 18, 2018 | Josh Opheim


Having a plan, controlling costs, and creating a portfolio that provides you with income will result in you having more money.

Structure matters... it matters a lot!

How much can it all add up to?

See chart on the right for how each scenario would grow.  Both scenarios start with an initial $500K deposit.

Markets are uncertain, but as Advisors, if we provide financial planning advice, reduce client costs, and have them in dividend growing companies versus TSX like mutual funds, the potential added value is quite amazing.
While we understand the above example is an extreme, the impact should we hold the rate of return the same but still provide financial planning advice and reduce costs (both we can completely control), the results are still astonishing!  See the example below.


What if returns remain the same?

See chart on the right for how each scenario would grow.  Both scenarios start with an initial $500K deposit.

The above example is extraordinary, but unfortunately most people do not realize the impact that planning, costs, and returns can have.  But what would happen if the average investor left their investments as is, but added financial planning advice and were able to reduce their costs? Would there still be a significant difference?  The answer is a resounding YES!
Please contact us today to setup an appointment to get you headed on the right track.


This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns.