Invest with purpose to achieve your goals
While risk, diversification and performance are often top of the list when making investment decisions, creating a road map must be the first priority, says Rob McGavin, managing director of financial planning and insurance advisory for Scotia Wealth Management.
“Some may look to investing in the long term for retirement or legacy; medium term to benefit a business or family; or short term to purchase a home or pay for a child’s education,” he explains. “Every situation is different. Understanding individual goals ensures investment strategies are aligned with those intentions. A financial plan is the foundation of that work.”
The challenge is that not everyone believes in the need for a plan. The affluent, for instance, often assume because they have already accumulated wealth a plan is not necessary. People still in the building stage, on the other hand, might feel they don’t have enough to warrant a plan.
But McGavin says, “It’s not about whether or not you have enough, it’s about creating actionable next steps to achieve your goals — whatever they may be.”
When it comes to creating a meaningful investment plan, the importance of a wealth adviser cannot be downplayed, he says. “Wealth advisers play a critical role in bringing together the unique attributes of a client’s goals with the strategies behind a plan. They not only help clients to articulate their goals and identify solutions, they leverage a plan to ensure the right solutions tie together, complement one another, and are not viewed or delivered in isolation.”
This a pproach, using “Enriched Thinking”, l everages the breadth of expertise across t he Scotia Wealth Management organization and marries it with the client’s goals to ensure they are achieved. At its heart is financial planning. “It’s about understanding what the client wants to accomplish, then providing relevant and appropriate guidance to help get them there,” says McGavin.
By collaborating in this way, advisers do not simply follow where the client leads. “Some clients may have financial needs that encompass income protection. Others seek management of an investment portfolio for the highest return,” McGavin says. “Regardless of the type of service provided, an adviser must know what each client wants to accomplish and why. Thorough analysis helps pinpoint how best to satisfy those goals using a variety of avenues, including innovative solutions that may have been overlooked such as insurance, trusts and philanthropy.”
Once an investment plan has been put in place, it doesn’t stop there. “Clients must be active participants in the success of the plan,” says McGavin. “Recommendations must be followed through, otherwise it is meaningless.”
It is equally important to keep the plan alive so it remains relevant. “Needs evolve, goals change and life happens — kids, retirement, job changes,” he adds. “A plan must remain fluid and be revisited on a regular basis. Making adjustments to reflect those changes will ensure the ultimate destination is reached.”
“I T’S ABOUT CREATING ACTIONABLE NEXT STEPS TO
ACHIEVE YOUR GOALS.”