Our goal is to provide value to our clients in terms of their long term wealth. With most investments, it is very difficult to provide returns that exceed the overall average of the various market indexes. Statistically, fewer than 20% will earn a long term average that beats the market. Never-the-less, we think that with the right guidance and education, our clients will have a reasonable chance of achieving that goal over the long term.
The key to doing that is actually more up to you, the client, than it is up to us. Your behaviour plays a crucial role in your ultimate outcome and a big part of our job is to help you understand what you can do to put the odds in your favour.
For many people, achieving a return that exceeds the market average isn’t a goal. For those people, we would steer them towards a more passive investment strategy. A passive investment is one that invests very similarly to the actual stock market index whose returns you are trying to replicate. By investing in a passive fund also know as an Index Fund, you are able to reduce your cost of administration.