Retirement
A Guide to Style
Who says there is no such thing as a free lunch?
"Diversifying by investment style is one of the few free lunches in modern portfolio theory," says Harry Marmer, Senior Vice-President of Franklin Templeton Institutional in Toronto. What does he mean by that? Simply that by holding funds that follow more than one style, an investor can reduce risk without diminishing return.
Most of the time, of course, investors can't lower volatility without sacrificing some performance potential. Money market funds are relatively low-risk choices, but will never earn as much over the long-term as a well managed equity fund. Investments within Canada might be less volatile than holdings in emerging market countries, but they generally offer lower prospects for growth.
Risk and reward play a delicate balancing game within a portfolio as financial advisors play one against the other in an effort to calm an investor's short-term anxiety while meeting their long-term needs. Keeping returns high while minimizing risk might seem like an impossible dream, but that is exactly what you can achieve by choosing a mix of growth and value funds.
At RJ Rau & Associates every product we offer has a guarantee – and we believe that should apply to your investments as well.
Portfolio analysis capabilities
We offer complete Portfolio analysis to help you determine just how competitive your current investments are. This includes a comprehensive, written report clearly outlining our findings and recommendations. Utilizing statistical data going back over 60 years, we can help you to make informed, clear thinking decisions. Using our leading edge internet based systems and software programs in conjunction with our expertise and market knowledge, we can help you find the answers to questions such as:
- What is my guarantee position?
- Where do I stand today?
- Could I do better?
- How is my portfolio performing? As compared to what?
- What is my GUARANTEE position?
- How do my existing investments and pension plans factor in?
- How do government benefits factor in?
- How much do I need to retire and how will my current plans fare?
- How can I guarantee an income during retirement no matter how long I live?
- What happens if markets are choppy?
- What is the Retirement Risk Zone?
- How do I plan for certainty?
- How can I ensure that I don’t run out of money when I’m retired?
- What happens to my planned retirement if and when markets crash?