What Is Successful Investing ?

It probably depends on who you talk to and how they might define success. Some might define it as speculating on Cannabis related stocks in the age of Marijuana legalization (if /when you can catch the ride). Or owning Facebook, Amazon, Apple, NetFlix and Google stock at the right time.

But, really, that is just gambling on the hype (which can be quite inviting and exciting) and is a very short-term, high-risk strategy. Fun when it works, frustrating when reality intrudes and valuations stop looking so terrific (which will happen, eventually). 

With the speed that we all demand for gratification in the age of the internet, we have to be careful that when we invest, the results that we expect and desire are in keeping with a more structured long-term plan (even when you are in your 60's, you have likely 25-30 years still remaining on this planet). At High Rock we call it a Wealth Forecast and it becomes the basis for all of our investing decisions on your behalf. Quite simply, it outlines your goals and your timelines for achieving those goals.

From that point we can determine what average annual return (over multiple years) you need to achieve your goals: be they retirement lifestyle, major purchases or creating a financial legacy for the beneficiaries of your estate.

More importantly and crucially, your plan needs to be monitored, reviewed and updated as life changes occur. We think that this should be done at least semi-annually.

The challenge, as with anything that takes time to accomplish, is sticking to the plan. "Shiny object syndrome" will always prey on your psyche and hindsight is always 20/20. Some financial salesperson is always going to paint "greener grass" on her/his canvas and hype their offering making it all sound so tempting.

Over a year ago we came up with a Voluntary Code of Conduct declaration (duly signed by all of our partners) to ensure that we always put our client's interests ahead of our own. The idea being that financial success is more than just month to month, quarter to quarter or year to year returns, it is the faith and trust put in the plan, the execution of that plan and managing that plan to see it through to meeting your end goals.

Our intent is to do all of this within the context of a low fee environment, a higher level of service (than most of our large financial institution competition) and a legal fiduciary responsibility that is not offered by large financial institutions: our provincial securities license holds us to a higher standard than IIROC licensed advisors.

So often we see the portfolios of new clients joining us with investments (with such unsuitable risk) that if we were to have bought them into our client portfolios, we would lose our license. 

So the key to long-term investment success is to look long and hard "under the hood" to find the wealth management team that will make you (and not the assets that provide them with their commission's) their priority.