Awareness Series #5|Getting from “Here” to “There”

7 Jul

One of my favourite business books is, “What Got You Here Won’t Get You There” by Marshall Goldsmith. Goldsmith works with senior executives to advance their careers, especially when they are stalled.  The book includes many examples of how bad interpersonal habits (e.g. slamming colleagues/subordinates, focusing on winning instead of building relationships, and withholding information others need to succeed) can prevent competent men and women with great leadership skills from reaching their true potential.  It is difficult to see our own faults.  It takes a seasoned coach to point out what we are doing wrong and to give us strategies for correcting any self-sabotaging behaviour.

Time HorizonFortunately, when it comes to investing, an accredited Financial Advisor like myself can help you apply the wisdom of, “What Got You Here Won’t Get You There” especially when strategy modifications are required to respond to different life events and time horizons.  For example, to accumulate wealth for our children’s college or university education ten or twelve years away, we look for investments that should grow at a certain percentage amount over those years.  However, as the kids approach the end of their high school years, we want to protect those gains so that there is enough cash to pay for tuition, books and housing costs.

In a similar vein, we try to grow our RRSPs and TFSAs for many years in anticipation of having sufficient funds put aside to live a comfortable retirement.  Your Advisor will provide counsel on how much to contribute to these plans, for how long and what you need (and can realistically expect) in terms of a return.  With both a retirement date and desired lifestyle as your goals, you aim for the contributions and return that will enable you to “get here”.  Once you approach that date, your time horizon changes from “get here” to “get there.”  Now, you want your Advisor to work with you to structure the income so that it is both tax-efficient and secure in the event of a market fall.

If you as an investor have any bad habits such as not looking at your statements regularly, latching onto new investment trends you hear about on BNN or in the business news, or underestimating how much income you will need for children’s education or retirement, confess them to a trusted Advisor so that he or she can help you “get there.”

Contact me at mheenan@assante.com or 416-939-2000 for a consultation to talk about how I can help you get from “here” to “there”.

It’s just good advice.