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 our clients, whose career and life paths vary according to each person’s unique reality.
What does this flexibility mean in concrete terms? We will demonstrate this with some examples. But first a few words about the need to know yourself well as an investor.
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.
When a child arrivesA lot is happening in Sarah’s life right now. She is 28 and currently working as a legal secretary in a legal firm in the Lower St. Lawrence region. She got married just over a year ago and is now expecting her first child. All these developments are very exciting, but also lead to a host of questions, especially financial ones. There is, of course, the issue of maternity leave. Sarah will be receiving benefits from the Quebec parental insurance plan (RQAP), but she and her husband, who is a notary, must first determine which type of benefits (maternity, paternity, parental, shared parental) they will choose. Once they apply for the benefits, their choice is irreversible. This means they need to carefully weigh out their decision, keeping in mind its financial impact on the family budget. Speaking of the budget, both spouses will have to review the available income and the expenses to be incurred in their new situation. Anticipating all the potential financial implications is far from obvious, but Sarah will ask her fdp advisor to help her with these calculations. Sarah became an fdp client when her father, who is a physician, invited her to join in on the Family Advantages offer that he had subscribed to. Sarah gladly did and she recently decided to invest in the fdp Perspective Private Portfolio. Sarah and her advisor will thus assess the impact of the arrival of this first child and review her investor profile. Currently the weighting of her Portfolio is 30% fixed income and 70% equities. The discussion with her advisor will lead to a slight change in this weighting, to 35% fixed income and 65% equities. The government benefits and the tax incentives related to the arrival of her first child will allow her to maintain more or less the same asset weighting, while adopting a slightly more cautious approach. |
The surprises of lifeNow age 58, James expected to retire at 65. He has been an entrepreneur in the Eastern Townships for some thirty years now and he has done well for himself. He opened an investment account at fdp shortly after his wife, who is a dental surgeon, became a client of the firm. Life is taking on a new twist as James has just learned that he is suffering from a rare blood disease. The middle-term outlook is uncertain. His doctor has recommended that he start reducing his activities and eventually stop working altogether within the next year. Treatments are required and James will be unable to maintain his current pace of work. Because of this, he will have to consider selling his business shares to his associate. James had recently 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, James contacted his associate to sell his shares. 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. James 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 shares of the company to his associate, 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. |
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 and it can adapt to all your life situations.
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.
