Write or type out all of the expenses that are coming due at the beginning of the month these include things like rent/mortgage, food, utilities, gas, insurance, and other debt like car payments and credit cards. It is possible you may need to tap into emergency funds to pay these amounts because your income slowed down or even stopped the past couple of weeks.
Determine the “must-pays”
Food and rent/mortgage should be at the top of this list while the other items come after. Things at the bottom of your list should be credit card debt and entertainment/frivolous expenses. If needed reach out to all of the
providers of these expenses and ask if they have any deferral programs. For those that don’t have a deferral
program, communicate with them that you will pay a lower amount that you can afford for now to not impact your credit score.
Do some research online
Explore how your local and federal government is helping and providing assistance. There are lots of programs
coming out to help people in financial distress.
Sign up/register for any programs you are eligible for:
If you are a Growth investor then your target asset mix is probably 80% Equities / 20% Fixed Income. A balanced investor may have a target asset mix of 60 % Equities /40 % Fixed Income. During strong market periods you will find that your Equity portion becomes Overweight leaving you more exposed to stock market volatility than you originally intended. A prudent move at that time is to trim back your Equities to their original weighting. The same logic applies in the reverse. You may find that you’re now Underweight in Equities. With the worst part of the “crash” now likely behind us, consider taking this opportunity to rebalance your portfolio. Rebalancing back to your target mix will help to facilitate a faster rebound in your portfolio.
While just about everything appears to be “on sale”, remember that not all things are created equal. Some
companies and sectors will bounce back quickly, while others will lag for some time. Understand what you are
buying and what the prospects are for that company/sector over the next 12 months.
Consider introducing this private asset class into your portfolio. Historically it has been less volatile than most
public investments and has provided strong returns. This space can be difficult to access due to specific Net
Worth and Income requirements. If you do not qualify to access this space on your own, seek the help of a discretionary Portfolio Manager who can do so on your behalf.
Check Qualifications and Credentials
Referrals from trusted sources are helpful, but not enough. Check each potential planner’s qualifications and background. Find out if they have any credentials.
• Certified Financial Planner (CFP)
• Qualified Associate Financial Planner (QAFP)
• Chartered Life Underwriter (CLU)
• Professional Financial Planner (PFP)
Investment and Portfolio Management Credentials
• Chartered Financial Analyst (CFA)
• Chartered Investment Manager (CIM)
Ask each person about:
• Their education, experience and specialties
• How many clients they have and how long they’ve been a planner or PM
• How often they communicate with clients
• What kinds of investment products or services they’re registered to sell
• Which organizations they’re regulated by
• How they’re paid
• If they’ve been subject to disciplinary action by any regulator or industry association
Understand any conflicts
If your Financial Advisor is also qualified to buy and sell investments, understand how they choose investments for you. Do they recommend a wide range of investments? Or do they only recommend certain products such as mutual funds from certain companies? Are they a fiduciary? (A person who has a fiduciary duty toward someone else as well as authority to make decisions on that other person’s behalf must place that other person’s interests ahead of their own when exercising that authority)
Ask the planner to explain how they’ll be paid and compare their rates with others. What value can you expect as part of the relationship?
Ask for references
Ask for references from clients with similar needs to yours. Find out if the Financial Advisor works with any other experts, such as lawyers, accountants or insurance agents. Ask for references from these individuals.
Until then, stay healthy and stay safe.
-The Gilman Deters Private Wealth team
I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by HarbourfrontWealth Management Inc.”
This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing, and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The information is provided with the understanding that Harbourfront Wealth Management is not herein engaged in rendering legal, accounting, tax or other professional advice. While we have made every attempt to ensure the information contained in this document is reliable, Harbourfront Wealth Management is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or as to the outcome to be obtained from the use of this information, and is without warranty of any kind, express or implied. The opinions expressed herein do not necessarily reflect those of Harbourfront Wealth Management Inc. The particulars contained herein were obtained from sources we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed are not to be construed as a solicitation or offer to buy or sell any securities mentioned herein. Harbourfront or any of its connected or related parties may act as financial advisor or fiscal agent for certain companies mentioned herein and may receive remuneration for its services. The comments and information pertaining to any investment products (The Portfolios) sponsored by Willoughby Asset Management are not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Portfolios is made pursuant to the Offering Memorandum or Simplified Prospectus and only to investors in Canadian jurisdictions. Important information about The Portfolios is contained in the Offering Memorandum or Simplified Prospectus available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolios. Investments in The Portfolios are not guaranteed, their values change frequently, and past performance may not be repeated. Historical annual compounded total returns including changes in unit value and reinvestment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolios can maintain a specific net asset value. Harbourfront Wealth Management Inc. (“Harbourfront”) has relationships with related and /or connected issuers, which may include the securities or funds discussed in this commentary and are disclosed in our Statement of Policies Regarding Related and Connected Issuers. This policy is included in your new client package, on our website, or can be obtained from your investment advisor on request.