Wealth management is more than advice relating to investment options. It is a holistic approach to managing your financial health and starts by us taking the time to fully understand the goals you have for you and your family. In addition to the solid foundation provided by insurance, there are many options available for you to grow, store, use, and pass on your wealth. What is important to you? Perhaps...
We educate people to maximize the growth with minimum risk. We will work with you to answer your questions and prepare a plan to help you achieve your goals.
Segregated (seg) funds are one solution to an uncertain market. A seg fund is an investment product (invested in one or more underlying assets, such as mutual funds, ETFs, or portfolios) combined with an insurance contract.
They can be a good solution for investors who are concerned about volatility, market corrections or long-term bear markets (a market where prices are falling, that encourages selling), but don’t want to abandon the possibility of higher returns. By offering guarantees of all or a portion of the principal, seg funds protect invested capital while providing upside exposure. If, during the life of a seg fund contract, the value of the underlying assets grow, then you (or in the case of death, your beneficiary) will reap the rewards. However, if upon maturity, or the death of the contract holder, the market has fallen, losses will be capped or eliminated altogether, depending on the terms of the contract. Additionally, 100% death benefit guarantees are available to investors up to the age of 90 (without medical review requirements). It’s no surprise that seg funds have experienced increased popularity.
Another way seg funds can help you, the investor, address market volatility is the availability of “resets”. Reset options give you the ability to lock-in value gains of the underlying asset. When you implement a reset when prices peak, the guaranteed amount of your seg fund will be increased to match the elevated market value. This feature allows you to take advantage of upside gains (under the terms of the reset feature) even when asset values subsequently decline during the lifetime of the seg fund contract. It’s really a win-win situation. Let’s be honest, we could all use a few wins these days. Since segregated funds are so connected to life insurance, it’s not surprising that they have a death benefit attached to them. If you assign a beneficiary to your fund, they’ll receive your guaranteed contributions if you pass away before your contract expires. This money will often go directly to them, tax-free and without probate fees. The proceeds will bypass the time consuming and potentially very costly probate process and they can be creditor proof. Therefore, the seg fund also provides an excellent estate planning tool. The current reality - and the prospect of massive government aid programs coming to their eventual end – has driven fears of a major market correction to the highest levels in many years. The protection that segregated funds offer may be more than welcome in these emotional and uncertain times. Stock markets will always have periods of uncertainty and heightened risk, but segregated funds can combine performance with security to give you the peace of mind you need and deserve.
Professionally managed investment portfolios with online investing – or robo-investing as it is often called – allow you to start investing in just minutes. You have 24/7 access to your accounts, automatic rebalancing, lower fees, and professionally designed and monitored portfolios. In partnership with CI Direct Investing, we can offer our clients access to 12 portfolios, including five ETF (Exchange Traded Fund) portfolios, four hybrid ETF/active pool options that are exclusive to our Valet clients, and three private investment portfolios managed by Nicola Wealth, CI Direct Investing’s exclusive portfolio partner.
Robo-advisors give our clients the tools to manage investment portfolios online. The investments included in your portfolios can vary, but their general purpose is to provide efficient, low-cost portfolio management. Does that mean your current advisor is obsolete? Not at all. Your advisor already knows (or will get to know) your situation and has insights that can help you meet your goals. A robo-advisor is just another tool on their belt. They may offer a selection of investment products including ETFs (Exchange Traded Funds) or other funds. They can balance investments across these funds to ensure the right mix of risk, return, and volatility based on answers you provide about your individual circumstances and goals. The actual portfolios are managed and rebalanced by people, not computer algorithms. Together with your advisor they’re able to provide you with great service and competitive fees.
An ETF – or Exchange Traded Fund – is a tradable fund that can track an index, bonds, commodities, or even a basket of assets. Rather then being invested directly into the stocks contained within a fund or market index, an ETF allows an investor to buy a share of the entire fund. The virtue of this is it allows an investor to easily buy and sell a stake in a fund. Beyond this, ETFs typically have much lower fees than investing directly in a mutual fund. Where a mutual fund might charge 2% or more annually, a similar ETF might only be 0.50% or less. By utilizing ETFs a robo-advisor can diversify your portfolio and continually rebalance the investments to ensure that it maintains your desired mix of attributes.
Robo-advisors can free up your advisor to spend time on the things that matter most to you. By outsourcing investment selection and rebalancing, it allows your advisor to take a more holistic approach with your finances, retirement and investment goals.
Robo-advisors also tend to have lower minimum investments and allow the investor to access asset classes and pools typically reserved for those investing $250k and above. Combine this with lower fees and it makes it practical and effective for people looking to invest $1,000 in their TFSA or even $1M and above. On top of the savings, some robo-advisors also offer apps and online tools so you can see in real-time your financial position, how your portfolio is invested, and quickly and easily move money in and out of your account – even from your phone or tablet.
Not all robo-advisors are created equal. Firms can offer a wide variety of different services and pricing, so finding the right one for you is important. Some robo-advisors such as CI Direct Investing, provide access to a wider range of portfolios such as private wealth pools that are exclusively available through your advisor. These private wealth pools can allow you to include hard asset real estate, mortgages, and private equity to help diversify your portfolio.
This referral arrangement with Newport Private Wealth provides you with a comprehensive wealth management experience with the introduction of high quality, discretionary portfolio management. Newport Private Wealth is one of Canada’s largest independent wealth management firms for high net worth families, with more than $3.7 billion of assets under management. The firm is known for its unique and diversified investment platform that has produced a stable, long-term track record with lower volatility than the index.
