New Year’s Resolutions To Make Now—plus what’s new in investing for 2020!

15 Jan

Investing in 2020: What we’re excited about, and why you should be too! 

The new year is here and optimism is in the air! But it’s not just the fresh start that has us excited. From new investing tools to alternative investments, there’s a lot to look forward to in 2020. Here are the top 3 financial tools and investments on my radar now.

Finding out how risk tolerant you truly are Most investors know that they have to take some risk to get the returns they want, yet many balk at the idea that at some point they may have to see their portfolio go down for shorter or longer periods as the trade-off for growth. As a Financial Advisor I need good tools to understand how much financial risk a client can comfortably take, and there’s now a new tool I’m using for this that I’m excited about, called FinaMetrica. It helps us have to conversation about the right investments and asset allocation for a client’s risk profile so they can reach their goals or why they may have to save more/work longer if they are not comfortable taking the risk needed to do so. I am offering this risk assessment to all clients in 2020.

Getting to know your real financial goals When you sit down with an advisor, he or she asks usually asks, “What are your goals?”Research has shown that it’s very difficult to answer this question accurately in the spur of the moment. Fortunately, I’ve found a tool that helps you identify goals that truly matter to you, and that also helps you express these in more concrete language. Many people change between one and three of their initial goals after this reflection; showing that thinking into the future is easier when you take the time to do this exercise. As a result of this exercise, we will both be clearer on your personal goals, and the financial advice I give you will be better tailored to helping your reaching those goals.

Investing like the best Public pension plans like the CPP use alternative investments in assets like real estate, toll roads and bridges to diversify their portfolios and decrease their exposure to market volatility. As their website points out (http://www.cppib.com/en/how-we-invest/), the CPPIP Investment Strategy is structured to be resilient in the face of wide-ranging market and economic conditions. It covers all major asset classes, addresses significant risk factors, and encompasses approximately 30 distinct investment programs. Now Canadian investors will have access to similar investments through liquid alternatives. These funds rely on alternative sources of returns, providing investors with the potential for enhanced diversification, decreased volatility, and attractive risk-adjusted returns. Perhaps most attractive of all, we can sell them any day we want, like a mutual fund.

Want to hear more about any of these? Let’s connect to explore how these tools and investments can work for you.