BECAUSELIFE ISALWAYSAWORKINPROGRESS
How you determine your appetite for risk extends well beyond your age and stage of life and is not determined by simply completing an annual questionnaire. “Filling out a form doesn’t get to the heart of the matter. There is an emotional quotient involved ,” says Mario Causara no, managing director and head of Private Investment Counsel for Scotia Wealth Management.
Well beyond the standard ‘client profile’ information there needs to be an understanding of your personal and professional life today as well as your ambitions for your family and future.
Digging down to really understand what’s important to individuals at each stage of life—their goals, aspirations and time lines—is paramount, says C au sara no .“By doing so, we get to know who our clients are, and then create a customized investment plan for their goals, adjust expectations and adopt a risk tolerance and investment philosophy that allows you to sleep at night.”
Investing with thoughtful consideration of your life in its entirety is important at every life stage. In the accumulation stage, there is a long time horizon during which investors can absorb risk and volatility in the market, Causarano says. “In retirement, needs and time horizons change. It becomes a period of capital and wealth preservation that requires portfolio adjustments to ensure income needs are met, your family is taken care of, and your legacy goals are accomplished.”
Financial planning, which is the cornerstone to the Scotia Wealth Management approach, is especially important in helping understand a client’s vision and creating a road map to achieve the desired outcome for three main categories — self, family and community, he says.
There are multiple strategies involved but planning begins with ensuring there is enough to live comfortably during retirement and that family is taken care of in the future, says Causarano. “But as the drawdown cycle approaches, it’s important to look at objectives beyond retirement living and family security because they will have an impact on ongoing investments.”
In some instances, accumulated assets may point to simple estate planning with the help of life insurance. In others, planning may be more complex, requiring trusts and charitable giving, which have a longer time horizon and therefore different investment options.
An investment adviser plays a major role in helping to determine the right course of action for every situation.
“In the early years, they can help ease anxiety and navigate volatile markets such as those we’re experiencing today,” he says.
Misconceptions around investment and risk abound. A good investment adviser can help dispel the myths and steer clients to actions they may not otherwise have considered, says Causarano. “And that can make a significant difference in effectively transitioning accumulated wealth and family-owned businesses.”
Enriched Thinking is all about listening and understanding the life you en vision, then offering advice to help make it happen. Learn more at: ScotiaWealthManagement.com