Investment management as a standalone
service is unlikely to satisfy all your needs.
Investment management is an important aspect of financial suc-cess
but not the most complicated or critical.
It is not rocket science to build a portfolio of low-cost funds
that will have at least a decent probability of delivering a reason-able
return. Computing power and automation simply add
The big questions are: will it be enough, what is
enough, how will I know I have enough, will it make
Ben Carlson of Ritholtz Wealth Management re-cently
blogged on the topic and he makes some
important distinctions between investment management and fi-nancial
advice (or planning).
Some of the distinctions he draws are:
Investment management is about asset allocation, expected re-turns,
risk tolerance and time horizon. Financial advice is about
making wise choices about the use of debt, providing education
funds for children and grandchildren, tax efficiencies, estate plan-ning
and the proper use of insurance to offset risk and liabilities.
Investment management is about managing investments.
Financial advice is about managing investors. A
perfect investment plan is rendered useless if
50 Think BIG | Quarter 1 2017 | saskheavy.ca