Download financial letter

ISSUE 1, NUMBER 1, FEBRUARY 2013
FINANCIAL LETTER
Caisse populaire de l'Envolée
MANAGING YOUR WEALTH
How are my returns?
Managing your portfolio
expectations
Are you satisfied with the return on your portfolio? Do
you think you’re making the right investment choices?
As an investor, asking yourself questions about your
return is an important and essential exercise, especially
if you invest for financial security, to build wealth, or
with specific projects in mind.
Returns are affected by various factors, the global
economic environment and stock and bond market
fluctuations in particular. By identifying your investment
goals, horizon and risk tolerance, you’ll know if your
portfolio expectations are realistic and meet your needs.
Maintain your saving
strategy and think
long-term
Because markets and the economic
situation can surprise us from one year
to the next, the first step toward a
good return is adopting a disciplined
savings strategy suited to your life.
Remember, you have time on your side.
Invest often—even if it’s only small
amounts—and take advantage of
long-term returns and the compound
growth they offer.
Get yourself started if you want to
make sure you have some retirement
revenue, no one is going to do it for
you. Indicators point to signs that the
government may not always be
committed to public pension plans,
and fewer and fewer private sector
employers contribute to their employee
pension funds. With increases in life
expectancy, it’s important to continue
investing, even in retirement.
horizon, your goals and your risk
tolerance. These days it’s important to
invest in several asset categories.
An understanding of the return
potential of each asset class will guide
your investment choices according to
your risk tolerance. Your advisor will
help you to understand, look ahead
and address the investment challenges
you will face over time.
By adapting your portfolio to your
investment needs, you can find
investment solutions that are able to
generate income and increase your
capital. Several of these investment
solutions will ensure that your portfolio
will be balanced and respects the criteria
you’ve identified. If the portion of stock
market investments in your portfolio is
greater than you had initially
established, some of your investments
will be sold and reinvested in bonds.
Rebalancing occurs when necessary so
the risk in your portfolio can be
controlled and you can avoid making
impulsive decisions.
There is certainly no secret recipe when
it comes to investing. Consider longterm returns to achieve your long-term
goals, and don’t be influenced by the
ups and downs of short-term market
fluctuations.
Optimize your return by
diversifying your portfolio
You can diversify your portfolio to find
the right return for your investment
(continued)
Your Desjardins advisor has the tools to
analyze your financial situation and
develop personalized recommendations
for you.
Did you know that 90% of long-term
portfolio returns are the result of
properly diversifying and not due to any
particular stock choice?
Patience is a virtue
Your investment strategy needs to
reflect not only your investment needs,
but also your personal situation. Take
the time to review your portfolio.
The diversification model that best
corresponds to your situation or your
age could change over time. Certain
investments could need to be replaced
in order to optimize the return; some
need to be re-evaluated so that overall
your portfolio is balanced. Investment
products can often be acquired by
various intermediaries who lack a
complete understanding of the
portfolio. This approach brings no
added value and results in overdiversification. Your portfolio isn’t static,
sometimes it needs to be reorganized.
It needs to develop according to your
goals and your stage of life.
Meeting with your advisor at least once
per year will provide you with important
information about your short- and
long-term projects, allow you to address
specific issues and to review your
investment strategy, as needed. These
meetings are just as important during
stable economic times as they are
during turbulent ones. Be mindful of
your finances and seek out good advice.
Your advisor or Desjardins financial
planner1 is there to guide you.
1
The financial planner works on behalf of
Desjardins Financial Services Inc.
Printed in winter 2013
© All rights reserveds
This document is provided for information purposes only. It is not intended to provide specific financial, tax, legal, or other advice and the examples provided may not necessarily apply to your
circumstances. You should not act solely on the basis of the information presented in this document without seeking the advice of a professional. Desjardins can in no way be held liable for any
consequences or investment decisions based on the content of this document.
EXPERTISE • SUPPORT • STABILITY
Caisse populaire Desjardins de l'Envolée
13845, boul. du Curé-Labelle
Case postale 1200
Mirabel QC J7J 1A1
Phone: 450 430-4603
Toll free: 1 877 430-4603
Stop by your caisse today for advice.