The fdp Perspective Private Portfolio: evolving at your pace

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 physicians, 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.

Recharge while staying on track

Jonathan is an emergency physician in a hospital in the Quebec City region. He has been practising for about ten years. At age 37, he still loves his profession, but for some time he has felt the need to take a break and recharge his batteries. Friends moved to Brazil five years ago and have repeatedly invited him to come spend time with them and travel to that part of the country.

Jonathan would like to take a sabbatical of at least six months, so he will have to adjust his portfolio to afford the downtime. He has been a client of fdp since university and he recently switched to the fdp Perspective Private Portfolio for his investments. He is an investor with a predominantly growth focus, i.e. 20% fixed income and 80% equities.

After talking to his fdp advisor about his sabbatical plan, Jonathan asked her what changes need to be made in anticipation of a period of at least six months without pay. His advisor suggested that he change the weighting of his Perspective Portfolio slightly to reduce short-term risk during this period (50% fixed income/50% equities) and plan periodic fixed withdrawals during his sabbatical. This change will have a tax impact, but since his income will be significantly reduced for a period of time, the impact will be less.

Upon his return home, Jonathan will be able to resume his work at the hospital and, consequently, his pace of savings. He should be able to quickly increase his equity weighting and seek more long-term return.

Open new horizons

Catherine is a radiologist and has been practising in the same hospital on the South Shore for the past fifteen years. At age 44, the entrepreneur in her wants to express itself and she is ready to take on new challenges. An opportunity presents itself for her to partner with two other radiologists to open a private clinic. She could continue her work at the hospital on a reduced schedule and eventually devote herself entirely to the development of the clinic.

The incorporation process with her partners and the purchase of the clinic are planned for the end of next year. A client of fdp for some fifteen years, Catherine has relied on the fdp Perspective Private Portfolio to accelerate her savings. The Portfolio’s current weighting is 35% fixed income and 65% equities. She plans to withdraw some of her savings for the incorporation process, as well as for the purchase of the clinic and the associated costs.

A discussion with her advisor gave Catherine a vision of the approach to use to achieve her goal.

The fixed-income weighting of her Portfolio will be increased by 20% over the next year, and the equity weighting reduced by 20%, to ensure that when the required amounts are withdrawn, the funds will be available.
The first year of operation of the clinic may also generate additional costs, but in the second year, Catherine and her advisor will be able to analyze her financial situation, increase the equity weighting of her Portfolio again, and, if she wishes, invest in an optionality, Technologies of the Future, a field which interests her and for which she sees potential financial upside.

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, physician.

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.