Best Part Of My Job

We try to meet with our clients at least twice a year to make sure that their goals are the same as they were six months ago or if they have changed, that we are updating and modifying their strategy.

We also try to make sure that we are meeting our targets for growth and if there should be any adjustments to their risk profile if that is not the case. Each of our clients has a return target (annual average compound return over a multiple year period) and a general understanding of the risk required to achieve that goal (which we spend countless hours of our time, behind the scenes, researching). Our desire is to get the maximum return, relative to the risk we take: we call that the return per unit of risk taken.

What I love most, as it was with a review yesterday, is showing how we are taking less risk than we have needed to over the last 5 years or so and getting average annual returns well ahead of the client's target. 

With a conservative cost of living projection and above target returns, you guessed it, the net worth projection for the next 30 years has improved (from when we last met) and is ahead of schedule.

The conversation then turns to what their next travel adventures will be and their latest efforts to create a good healthy lifestyle, which is way more of an upbeat conversation than discussing risk-adjusted returns (although as a financial geek, I do enjoy seeing the progress that evolves through our High Rock process).

The point here my friends is that you don't (in most cases) need to take unnecessary risk. If you have a goal (and you all do), you need to know what level of return you need to meet that goal. Why jeopardize that goal by taking too much risk in order to get a few extra basis points more that you don't need? That is the difference between stewardship of your family's wealth and gambling.

I love proving that true.

And of course, as is always the case, past performance is no guarantee of future returns. At High Rock, however, we take great pride in the work that we do to try and get the best possible risk-adjusted returns for our clients.

Vancouver and Calgary friends: I am looking forward to visiting you in your wonderful cities in June. If we have not yet connected and you would like to get together, please feel free to get in touch to set up a meeting, still a few time slots available.

scott@highrockcapital.ca