Here are a few things to think about;

• decide on your investment goals
• select your investment product – stocks, bonds, ETFs mutual funds, etc (there are over 3400 mutual funds in Canada, 1177 ETFs, 1500 companies listed on the TSX and this is only Canada).
• determine how much to invest in each product
• measure your risk tolerance
• build your portfolio
• monitor and rebalance over time.

Pros and Cons

Do it yourself can save you money and you can make your own decisions on your own time according to your investment values.

However, DIY investing does lack some of the advantages that come with receiving professional advice and advisory services. A self-directed investor is on their own, and the learning curve may be steep. good portfolio management isn't just about posting profits when the market's up, but curbing losses when it's down. That can be hard for an amateur, or an index-tracking roboadvisor, to accomplish.

Furthermore, effective financial advisors not only build and monitor investment portfolios, but offer financial advice in all areas of their clients’ lives and provide auxiliary services such as insurance, estate planning, accounting services, and lines of credit, either themselves or via a referral network.

History has shown some investors tend to buy investments currently performing strongly and sell underperforming ones letting their emotions drive their investing decisions.  Often these actions are poorly timed and can lead to an insecure financial future.

 

I am Portfolio Manager licensed which allows me to trade on a discretionary basis for clients with an agreed upon Investment Policy Statement which outlines time horizon, risk tolerance, legal or regulatory restrictions. 

The main principle of investing is diversification.  I am monitored daily by my risk department to ensure I stay within the guidelines of what my clients agreed to. I cannot hold more than 10% in any one position, no more than 30% in any sector, no more than 10% BBB+ rated bonds and geographic consideration.

I monitor markets daily, I rebalance as needed, add or remove a name based on changes to fundaments.  I build portfolios based on the taxation of the individual accounts  - tax smart investing so you can keep more of what you earn.   

I truly feel one of the biggest values I bring is discipline.  I remind clients for TFSA, RRSP, RESP contributions, I check in on their financial plan annually to ensure they are still on target to meet their goals, whether it be retirement,  travel, income generation, planning for health care needs later in life, gifting, charitable giving.

In addition to portfolio management, I do financial plans for all clients and update annually or as needed, I am insurance licensed, we have a tax team I can call on, we have Royal Trust for help with Estate and Trust issues, and of course RBC Royal Bank for clients’ day to day banking needs for both personal and small business/commercial.

If you don’t have the time, knowledge or discipline to manage your own portfolio, please contact me.