We recently introduced a brand new investment offer, which we announced to you in our June 2021 edition of Dialogue. This fdp Perspective Private Portfolio marks a real step forward in terms of its flexibility, its customization and above all of its ability to evolve at your personal and professional pace. It’s part of our effort to respond ever more precisely to the needs of dentists, whose career and life paths vary according to each dentist’s unique reality.
What does this flexibility mean in concrete terms? We will demonstrate this with a few examples. But first a few words about the need to know yourself well as an investor.
We recently introduced a brand new investment offer, which we announced to you in our June 2021 edition of Dialogue. This fdp Perspective Private Portfolio marks a real step forward in terms of its flexibility, its customization and above all of its ability to evolve at your personal and professional pace. It’s part of our effort to respond ever more precisely to the needs of dentists, whose career and life paths vary according to each doctor’s unique reality.
My profile, my reactions
By speaking with your advisor to determine or adjust your investor profile, you are laying the foundations for your future decisions. Because what this profile will reveal is not in which pre-established investor category you belong, but rather your understanding of your investment portfolio and, above all, how you react to the market events that can influence it.
Your behaviour in these circumstances is very important because, as every financial advisor knows, emotions play a big role in how investors perceive their investments. According to your project, by accurately assessing your tolerance for risk or for the unexpected, and by recognizing your reactions to market events, you can build an investment portfolio that’s right for you. You will also get a better understanding of the planning that is required to reach your goals.
Not always smooth sailing…
But of course, the road of life can be bumpy at times. At different stages, events can occur which may cause you to deviate from your original plans and which will require more or less rapid adjustments to new circumstances: change in your career path, birth of a first child, health problems… Your investment portfolio should adapt to your reality and help achieve your objectives, so it has to be flexible enough to adjust to your new needs, while continuing to build your savings.
It’s with this in mind that the fdp Perspective Private Portfolio was created, and that’s why we believe it can effectively meet your needs.
- Since it comes in 17 different equity and fixed-income weightings, it can be tailored precisely to your investor profile.
- If your profile changes over the years, adjustments can be made to the Portfolio, since it essentially involves changing the weighting, not the products. A tax impact is to be expected, but since you’re not exiting one portfolio and creating a very different one, the change doesn’t have the same significance from a tax perspective.
- Depending on your interests and your values, you can personalize your investments even more with the addition of one of our optionalities. Adding them to your Portfolio enables you to invest in industries that will shape our societies for decades to come.
NOW LET’S LOOK AT SOME SCENARIOS THAT COULD REQUIRE ADJUSTMENTS.
The surprises of lifeA dental surgeon for thirty years in Saguenay, Lawrence has just learned that he has an incurable chronic disease. His condition will require treatment and the prognosis is still uncertain. At age 54, he expected to continue his dental practice for another ten years before retiring. The diagnosis he was just given changes things considerably. He should be able to continue practising for a few more years, but he has to start the process of selling his practice so that he won’t be caught short. An fdp client for twenty years, he switched his assets to the Perspective Portfolio because he appreciates its flexibility. He was already anticipating certain movements of funds in the coming years, but events are precipitating things. After contacting his fdp advisor to inform him of the significant changes he is currently undergoing, Lawrence took steps to sell his practice. Since he knows that his illness will involve additional medical costs and unforeseen homecare expenses, he and his advisor agreed to change the weighting of his Perspective Portfolio from 50% fixed income and 50% equities, to 80% fixed income and 20% equities, because of the cash outflows that will be required for his care. Lawrence no longer has disability insurance: he canceled his contract five years ago, believing it was no longer necessary. The premium costs were also high. However, disability insurance coverage would have avoided these changes to his investment strategy. On the other hand, when he sells his practice, he will be able to discuss the weighting of his Portfolio again with his advisor since it will receive a large injection of cash. Depending on his situation, they will be able to assess the appropriate structure and review his retirement projection accordingly. |
Giving herself a choiceEmma is 26 years old. She is a partner dentist and practises in a corporation in Montérégie. This option seemed attractive to her at the start of her career because it allowed her to gain experience fairly quickly, while giving her enough leeway to consider other career development opportunities. Because Emma has a fairly high level of debt, she realizes that working in a corporation limits her choices. She will need to reduce her debt so she can partner in a dental practice, or even consider other options. Emma started saving early in university and transferred her savings to an fdp Perspective Private Portfolio with a weighting of 35% fixed income and 65% equities. To minimize her debt, she is ready to withdraw a larger amount from her portfolio for an exceptional one-time payment. In agreement with her advisor, they decided to make this payment. She then set up pre-authorized bi-weekly contributions to her Perspective Portfolio which will give her the latitude in the near future to explore and pursue the opportunities available to her. |
Always tailored to you
The fdp Perspective Private Portfolio is an investment solution that adapts to your needs. Talk about it with your wealth management advisor and see how this Portfolio can give you the personalization and flexibility you’re looking for. The reason is simple: it was created for you, dentist.
The information presented in this article is for informational purposes only and should not be construed as constituting a recommendation to buy or sell securities. In addition, the financial planning and tax strategies mentioned in this article may not apply in all cases. Please consult your wealth management advisor or your tax specialist, accountant or legal advisor.
