Med-Wealth

Understand the 4 Most Important Factors for Wealth Accumulation & Preservation

• Time - it takes time for money to compound - the longer it is invested, the greater the growth - this is also referred to as the 'magic of compound interest'
• Amount of Savings - you cannot create growth without the seeds of initial and ongoing investment. The more you save the more you will have over time.
• Rate-of-Return - the Rule of 72:
  • Dividing an investment's rate-of-return into the number 72 will tell you how many years it will take your money to double. Ex. 72/6% = 12 years.
  • If you have a 36 year career, your money will double just 3 times. Ex. $100,000 x 2 x 2 x 2 = $800,000.
  • If instead your money were able to grow by 12% annually, then 72/12% = 6 years to double. Over a 36 year career that is 6 doubles which extending the example from above = $6.4 million!
• Portfolio Boost - Allocate up to 40% of your portfolio to a more concentrated, growth-oriented investment strategy for potentially much higher returns.

Stop Accepting Mediocrity

Cookie-Cutter Portfolio Solutions

• Over the last 25 years or so, the financial industry in Canada has commoditized their investment solutions into 'all-in-one' portfolios. Most people's risk tolerance lands them in a typical 'balanced fund' allocated 60% to stocks and 40% to bonds
• Future return expectations - the balanced portfolio solution does not consider that bonds no longer offer attributes and benefits that they historically provided.
• Near-Zero interest rates and the potential for rising interest rates and inflation in the future make bonds a poor investment diversifier, relative to historical experience.
• Lower expected returns means - the inability for investors to achieve their retirement objectives
• When solutions are all constructed using the same strategies, the only differentiation becomes 'price' - i.e. the management fee.
• The only advantage in such an environment that can be sought is from 'lower fees'. Thus the increased competitive alternatives that focus on fee-reduction.
  • This is a fallacy. Lower fees don't necessarily result in higher returns. It depends on portfolio construction and investor's behavioral responses to market events and risks

• The vast majority of individuals licensed to provide investment advice in Canada exercise limited influence on portfolio composition and performance
• The principle difference between an investment advisor and Portfolio Manager is the latter's ability to exercise discretionary authority in making trades rather than seeking approval for each trade.
• This fact makes adding value from a potential return perspective more plausible with a Portfolio Manager than with an investment advisor.
• Bank branch advisors have a limited skill-set, training and knowledge, and recommend only their own bank's product-line
• Big-bank brokerage firms or investment dealers -
  • licensed advisors are better trained but are still limited to recommending in-house 'Private Wealth portfolio solutions' centrally managed by the institution or well-known retail mutual funds.
  • These advisors are relationship managers that help with financial planning issues and selection of your overall portfolio's asset mixture between stocks and bonds, based on a standard questionnaire. An important role - they have limited capacity to create superior investment-returns due to a lack of discretionary authority
• A Portfolio Manager (PM)
  • holds the highest licensing designation offered by industry regulators, requiring higher industry-focused, educational (CIM or CFA) and experience credentials.
  • CIM = Chartered Investment Manager; CFA - Chartered Financial Analyst
  • has the ability to use discretionary authority in the creation and management of customized model portfolio solutions; thus possessing the greatest ability to potentially enhance portfolio-performancepossessing the greatest ability to potentially enhance portfolio-performance
  • Only a small fraction of all investment-industry licensed individuals hold the Portfolio Manager (PM) designation
  • A higher standard of care:
    • Regular Investment Advisors (IAs) only need to ensure an investment recommendation meets the 'suitability requirement' (based on objectives, time horizon and risk tolerance).
    • Portfolio Managers - Fiduciary Duty - portfolio managers must always make decisions that are in the best interest of the client, in addition to ensuring investment suitability

John Soutsos, CIM, EPC, Portfolio Manager

• Uniquely constructed model portfolios with multiple options for all levels of investor risk-tolerance and objectives
• Employing portfolio management strategies and techniques that have historically demonstrated superior returns than industry-standard 'cookie-cutter', all-in-one portfolio solutions
• Incorporates a defined-allocation to a 'Portfolio Boost' strategy that incorporates the growth-potential of the healthcare industry, coupled with the risk-reduction attributes of the consumer staples industry.
• Includes services such as retirement and estate planning (IPC Estate Services); as well as tax-efficiency and financial planning guidance.
• Coordination of private banking*, accounting and tax preparations services.
• Entry point at $500,000 per household
• 30-years+ industry veteran with exceptional knowledge of economic and market history
  • Supported by next-generation succession strategy

* Private banking for medical professionals offered through National Bank