One of the best ways to manage your finances is through investment planning. Victoria, a diverse city with an equally diverse range of investment opportunities, offers something for every level of need.
In short, investment planning is allotting funds into relevant investments based on your goals, including accounting for the safety of these investments and their possible return. The point of investment planning is to provide financial rewards over time, using strategies that are geared toward your desire to take risks, as well as your goals.
Investment options can include shares, mutual funds, RRSPs, and real estate, among others. With thorough investment planning, you can determine the best investment, or mix of investments, for your needs.
The three main parts of investment planning are:
• Capital Growth vs. Regular Income: With long-term goals, you focus on capital growth. Long-term investments will allow you to endure rough times without having to change your plans. With short-term goals, or to augment your salary, you focus on income investments; these generate income through dividends and accrued interest.
• Determine Your Investment Profile: Your ability to take risks should be considered. There are four types of profiles: Conservative (low risk tolerance), Balanced (average risk tolerance), Growth (high risk tolerance) and High Growth (very high risk tolerance).
• Risk: With every investment option, there is a risk-return trade-off; riskier investments offer better returns, to encourage investors to take the extra risk. Proper investment planning needs to consider your appetite for risk, as well as your income, lifestyle and financial responsibilities.
It’s important to review your plan on a regular basis- that way, if there is a change in your financial circumstances or your desire to take risks, you can adapt your portfolio to reflect these changes. No matter what your financial goals are, you can find the right solution with proper investment planning, in Victoria.
Philip Bisset-Covaneiro is a registered financial planner in Victoria - with Investors Group - and has been running his practice for over 10 years now. He passionately takes care of his clients and what they need help with around their financial planning: mortgages, insurance planning, risk management, estate planning, working with wills, long term retirement planning, side investments and help generating additional income streams. He is licensed in British Columbia, Alberta, Ontario and Quebec.
Philip Bisset-Covaneiro and his financial planning team – are totally centered on each person as every single client and his/her financial situation is unique!