Most investment strategies, especially at stock brokerages, are simply a series of short-term speculative bets strung together and called “investing”. Research has shown that these active-management strategies are promoted by overconfident investment companies, money managers and stock brokers who too often place their interest before yours.
At arpadWEALTH we offer you a choice. If you are concerned about MERs (Management Expense Ratios) and believe that you can withstand the volatility inherent in any index, we will construct you a portfolio made up of various indexes. This broadly diversified portfolio will have a mix of equities and fixed income, rebalanced periodically based on your target asset allocation.
The other option is that you utilize our carefully selected and monitored short-list of portfolio managers to lower your risk (volatility) and have a good chance of increasing your return net of fees. Although this will cost you 0.90% more per year, it saves you many sleepless nights during a market downturn, not to mention the danger of losing your cool and switching out of the investments at the perfectly wrong time. That investor behaviour is the kiss of death for any financial plan. The exceptional performance of the TFSA portfolio owned by one of our clients was achieved by an active investment management mandate.
More specifically, we adhere to the following investment principles:
A disciplined adherence to your investment plan, which we strive to enforce through our investment counselling, significantly improves its chance of success.