When Is the Right Time to Switch Financial Advisors?

When Is the Right Time to Switch Financial Advisors?

By James Parkyn - PWL Capital - Montreal

When it comes to managing your wealth, it’s important to consider the value you are currently getting from your current advisor. If you feel that you currently paying too much to get too little, you are not alone. According to the 2023 EY Global Wealth Research Report, 45% of Canadians are looking to switch or add providers to help them manage their money more effectively.

It's understandable why Canadians are reevaluating who handles their wealth: high fees for proprietary products, subpar diversification and performance, a lack of a holistic financial plan…. In our expert opinion, you have every right to expect more.

Benefits of switching financial advisors

Perhaps you have reached a new junction in your professional life. Or it’s time to wind down your activities and think about retirement. Or perhaps you’re not sure you have the right plan in place or simply need a second opinion to feel secure about how your wealth can provide a comfortable life, now and for a long time.

Sometimes a fresh start is all you need to gain clarity, pay less, and get way more in return, such as a comprehensive plan focused on what you can control, that guides you towards reaching your ultimate objectives while minimizing costs.

What to look for in a new financial advisor 

Feeling unsure about where to start? A good financial advisor should offer a hassle-free journey guided by experts that's surprisingly easy and designed to deliver maximum value.

That's exactly what teaming up with the Parkyn—Doyon La Rochelle team offers. We'll walk you through every step with open ears and an attention to details. As a result, you'll feel confident knowing you have a personalized plan in place, and your investments are actively working towards your dreams.

Steps involved in becoming a Parkyn—Doyon La Rochelle client

Becoming a Parkyn—Doyon La Rochelle client is easy and stress-free. Here’s our 4-step process, during which we do all of the heavy lifting:

1. The Discovery Meeting: Understanding Your Vision

   The first step is a relaxed discovery meeting. This is your chance to share your financial goals, aspirations, and concerns. We will actively listen and then ask questions to gain a comprehensive understanding of your unique situation. This includes your current financial standing, risk tolerance, and long-term vision.

   It’s also a chance to learn more about our team, along with our evidence-based investment philosophy and approach to safekeeping your assets.

2. Crafting Your Personalized Plan: Tailored Solutions

   Based on the discovery meeting, we will propose a customized financial plan. This plan outlines a clear roadmap encompassing investment strategies, risk management approaches, and potential tax optimization strategies. Everything is designed to align with your specific goals, whether it's planning for retirement, saving for a child's education, or building wealth for a comfortable future.

3. Transferring Funds: Seamless Transition

   Once you're comfortable with the proposed plan, and decide to join us, we will initiate the transfer of funds. We know how to handle this process efficiently and will work with your current financial institutions to facilitate the secure transfer of your assets. If there are financial or tax implications related to the transfer, we will explain the choices in plain language and suggest the best way forward, with your best interests at heart.   

4. Regular Review Meetings: Staying on Track

   Your journey with us doesn't end with the initial plan. Regular review meetings are an essential part of the process. These meetings provide an opportunity to discuss any changes in your financial situation and adjust the plan accordingly to ensure you remain on track towards your goals. We optimize the frequency of these meetings to keep you fully in the loop without draining your time.

   Throughout this process, you can expect clear communication and transparency. We will be readily available to answer your questions, address concerns, and provide ongoing guidance.

Why Choose the Parkyn Doyon La Rochelle Team?

Partnering with us offers several key benefits:

• Financial expertise: You gain access to a team of experienced professionals with a deep understanding of financial markets, investment strategies, tax and retirement planning as well as charitable giving.

• Conflict-free advice: We use a straightforward, independent fee-based model to ensure you always get balanced advice that’s free from bank or brokerage affiliations.

• Tailored comprehensive plans: We offer holistic wealth management services to optimize all aspects of your financial life. This includes portfolio management, financial and tax planning, and inter-generational wealth planning.

• Personalized approach: Your financial plan is tailored to your unique needs and goals, ensuring a strategy that truly reflects your vision. If your circumstances change, we adapt your plan to ensure it continues to deliver maximum value.

• Ongoing support: You have a dedicated wealth management team by your side, providing continuous guidance and support throughout your financial journey.

• Peace of mind: Knowing your financial future is in the hands of experienced, unbiased professionals allows you to focus on what truly matters.

Working with an experienced financial advisor should be a smooth and enriching experience. If you’re not satisfied with the financial advice and guidance you’re currently receiving, remember that it’s easier than ever to switch. Come see how much value you can get from a fresh start with the Parkyn—Doyon La Rochelle team.

Let’s start building your financial future today

Want to learn more ?

On Expertise: Insights for Achieving Your Financial Goals

On Expertise: Insights for Achieving Your Financial Goals

By James Parkyn - PWL Capital - Montreal

One common trait of highly successful individuals is that they possess the discernment to acknowledge not only their own expertise but also recognize and leverage the expertise of others. This ability enables them to build strong networks, delegate effectively, and make informed decisions that propel them further towards their goals.

Importance of understanding and recognizing expertise

Genuine expertise transcends simply possessing all the answers; it entails understanding how and where to source the correct solutions when necessary. This is important for several reasons:

• It allows you to identify and leverage your strengths: Knowing your areas of expertise empowers you to focus your efforts and achieve better results.

• It helps you recognize the expertise of others: By understanding what others are skilled at, you can build strong teams, delegate effectively, and learn from valuable mentors.

• It allows you to navigate complex situations: Expertise provides a framework for making informed decisions and solving problems efficiently.

Benefits of cultivating expert networks 

Successful individuals cultivate extensive networks of skilled professionals, recognizing that leveraging the expertise of others is key to achieving their goals.

For more than 25 years, we've collaborated closely with accomplished executives, entrepreneurs, healthcare professionals, business owners and academics, both locally in Montreal and across Canada.

As an integral part of our clients' network of experts, we prioritize seamless coordination and comprehensive support. We maintain close collaboration with various professionals, including accountants and lawyers, to ensure that we consistently offer the most appropriate next steps within the broader context.

Our overarching objective remains consistent: to empower individuals to excel in their respective fields by simplifying and optimizing their financial decision-making processes.

>>>See our investment philosophy

What to look for in a financial advisor: 5 indicators of expertise

Here's how we help successful professionals like you:

• We understand your complexities. Your financial picture is multifaceted. You may have a complex business structure, a growing family to consider, and a desire to give back meaningfully. We take the time to understand your unique circumstances and goals.

• We speak your language. Financial jargon is our second language. We translate complex concepts into clear, actionable plans that fit seamlessly into your busy schedule.

• We value your time. You don't have time to wade through mountains of financial data. We provide concise, insightful reports and regular communication, keeping you informed and involved without overwhelming you.

• We focus on the growth of your wealth. We develop proactive strategies that align with your risk tolerance and ambition, allowing your wealth to work as hard as you do.

• We offer comprehensive solutions. From unbiased investment management, tax planning and estate planning to retirement strategies and philanthropic giving, we address the full spectrum of your financial needs.

>>>Learn more about what we do

Parkyn – Doyon La Rochelle: More than just financial advisors, trusted partners

We understand that financial security is about more than just numbers; it's about peace of mind and the freedom to pursue your passions. By taking the weight of wealth management off your shoulders, we free you to focus on what truly matters – driving innovation, leading your team, and making a lasting impact on the world.

Leverage the expertise of the Parkyn – Doyon La Rochelle team to simplify the journey to achieving your many goals.

Want to learn more ?

Does holistic financial advice translate into higher returns?

Does holistic financial advice translate into higher returns?

By James Parkyn - PWL Capital - Montreal

For the longest time, wealth management services were confined to building and managing financial portfolios for clients. Then came a holistic approach to financial planning, which promised superior outcomes by looking beyond simple portfolio returns to consider all aspects of an individual's financial life. But how exactly does holistic financial planning play out and does it really translate into higher returns?

In this post, I delve into the details of holistic financial planning to help you decide if working with a holistic financial advisor makes sense for you – and when you should make the switch.

What is holistic financial advice? 

Holistic financial planning (or comprehensive wealth management) considers all aspects of an individual's financial life. This goes beyond traditional advice on investments and retirement planning to encompass areas such as budgeting, debt management, insurance, tax planning, and estate planning. The goal is to create a tailored strategy that aligns with the client's overall financial goals and values.

Promised benefits of holistic financial planning 

The Parkyn—Doyon La Rochelle team has been staunch advocates for holistic financial advice for over 25 years. Based on our experience, we have seen that superior outcomes can be achieved by recognizing the interconnected nature of all financial decisions. 

How holistic wealth management works

All holistic financial advisors take a comprehensive view of the client’s financial life, but each team will have its own approach and skillset. That being said, there are some key steps that are typically involved in holistic wealth management services:

• The advisor will first meet with you and take the time to analyze your goals, values, financial situation, time horizon, and risk tolerance and capacity to tailor recommendations that optimize and simplify your financial life.  

• The advisor will then propose a multi-pronged approach that includes investment management, financial and tax planning as well as inter-generational wealth transfer & philanthropic planning.

• This multi-pronged approach will typically include a comprehensive roadmap that meticulously addresses and plans for major life events as a unified whole to optimize your financial well-being and overall quality of life.

• Once the approach and roadmap have been agreed upon, your financial expert becomes your trusted “quarterback”. They will often collaborate closely with your chosen accounting, legal, and insurance advisors to optimize financial efficiency, while balancing both your personal and business goals.

• Your advisor will continue to provide ongoing guidance and support that adapt to your ever-evolving circumstances, understanding that your financial, family and professional situations will not remain static over time. 

When is the right time to switch to holistic financial planning?

Most conventional financial planning will overlook at least a few key aspects of your financial life. If you are losing sleep over these missing aspects, it’s probably a sign that your current financial plan is not as comprehensive as it should be. This can be a good time to talk to a holistic financial advisor.

We have clients that come to us in their early twenties right up to the cusp of retirement. They may be just starting to think about their financial future, or at the point where they’re ready to solidify the legacy they will be leaving for future generations.

While the decision to switch financial advisors should never be taken lightly, it need not be painful or difficult. A good financial advisor will know how to guide you in the secure transfer of your assets and do all the heavy lifting, collaborating closely with the legal, tax and other advisors you know and trust. At the same time, they’ll ensure you retain full visibility and control over your finances.

By meticulously addressing and planning for life events as a unified whole, holistic financial planning can optimize your financial well-being and elevate your overall quality of life. Just like the harmony of a well-composed piece of music, success is achieved when all elements come together.

>>>See all our holistic wealth management services

The history of holism

The year is 1926. South African Prime Minister and natural science enthusiast Jan Christian Smuts coins the term ‘holism’ in his book Holism and Evolution. In it, he defines the concept as: "the tendency in nature to form wholes that are greater than the sum of the parts through creative evolution.”

The word ‘holistic’ was born out of this philosophy, and is employed today in many fields, to illustrate the importance of considering the whole, in lieu of focusing only on individual parts.

That same year, in London, England, Sir George Martin was born. Soon renowned for his musical brilliance and prowess as an arranger and producer, he earned the moniker of the "fifth Beatle." Martin's extraordinary knack for recognizing and amplifying the individual talents of John, Paul, George, and Ringo, transforming them into a cohesive force, became the stuff of legend. Understanding that the collective impact of the Beatles transcended their individual abilities, he played a pivotal role in shaping their enduring musical legacy, which continues to captivate audiences over six decades later.

The whole was always going to be bigger than the sum of the parts.

Want to know more about our approach to holistic wealth management?

For more commentary and insights on investing and personal finance, be sure to listen to our latest Capital Topics podcast and subscribe to never miss an episode. And download your free copy of our popular eBook Seven Deadly Sins of Investing. 

Can a crystal ball make you rich?

Can a crystal ball make you rich? 

By James Parkyn - PWL Capital - Montreal

Markets are tough to predict even with advance information 

Imagine owning a crystal ball that lets you see tomorrow’s news in advance. You could cash in and get rich! 

Not so fast, says statistician and financial writer Nassim Nicholas Taleb, author of best-seller The Black Swan: The Impact of the Highly Improbable. “If you give an investor the next day’s news 24 hours in advance, he would go bust in less than a year,” he warns. 

Taleb’s assertion now has backing from a study by Victor Haghani and James White of financial management firm Elm Wealth. 

WSJ trading experiment 

They did an experiment with 118 U.S. university graduate students—90% in finance or MBA programs—to test Taleb’s claim. 

The students each got $50 and the front page of the Wall Street Journal (with market price data blacked out) published on 15 random days from 2008 to 2022. They then got the chance to bet on how the S&P 500 Index and 30-year U.S. Treasury bonds would do the next day.  

They could go either long (that is, bet the market would go up) or short (bet that it would go down). They were also allowed to use leverage of up to 50 times—meaning they could borrow to increase the size of their trades to potentially make (or lose) more money. 

Students broke even 

The study’s “Crystal Ball Trading Challenge” (which you can try yourself here) showed how hard it is to predict the markets—even if you have advance knowledge. The students grew their $50 to $51.62, meaning an average return of only 3.2%. The result was statistically indistinguishable from breaking even, the paper noted. 

Just under half of the students (45%) lost money, while 16% went bust. The players made winning trades only 51.5% of the time. 

While students bet on the direction of bonds correctly 56.2% of the time, they were right about the S&P 500 in just 48.2% of the trades. Moreover, they compounded their errors by using more leverage in their stock’s bets (where they were wrong more often) than in bonds trades. 

Ordinary participants lost 30% 

As middling as these results were, however, the students fared much better than the roughly 1,500 people who played the game on the study authors’ website. These participants’ median result was a 30% loss. Only 40% made a profit, and 36% lost everything. 

The study, titled “When a Crystal Ball Isn’t Enough to Make You Rich,” also included results from a select group of five very seasoned and successful traders from top organizations. They all made a profit, with a median gain of 60%.  

But even they were often wrong. They placed losing bets 37% of the time. The study found that they did better than the students mostly because of how they strategically used position sizes to place bigger bets when they had more confidence. 

“Taleb is right”  

These seasoned professionals’ superior results suggested that “there are teachable skills involved in successful discretionary investing,” the study said. 

But for the vast majority of people, “by and large we think Taleb is right,” the authors concluded. 

“It’s very humbling,” Haghani was quoted saying about the results. “Even if you have the news in advance, it’s still really hard to do asset allocation or whatever with a high chance of being right, let alone not knowing what’s going to happen.” 

Timing the market is a gamble 

The study is just another good example of how hard it is to guess what markets will do. Even advance information appears to be unhelpful for most people, and it may actually be ruinous for some.  

And in the real world where we don’t have the next day’s news, timing the market is even more of a gamble. 

Investing shouldn’t be about gambling. Data shows you’re better off with a diversified portfolio and long-term investment plan that you stick to with discipline. This can help you tune out the headlines and better capture the returns that the markets have to offer. 

We can leave the crystal balls for the carnival. 

Read more commentary and insights on personal finance and investing in our past blog posts, eBooks and podcast on the website of PWL Capital’s Parkyn-Doyon La Rochelle team and on our Capital Topics website.   

TAKE ADVANTAGE OF THE EXPERTISE OF JAMES PARKYN, Portfolio Manager at PWL Capital Montreal to determine the best solution for you.

Lost Decade Ahead?

Lost Decade Ahead?

By James Parkyn - PWL Capital - Montreal

Stay the course with a diversified portfolio and long-term mindset  

Are we headed for a lost decade in equities? It’s a question on many lips after the stock market’s incredible multiyear bull run.

The worries got amplified in October when Goldman Sachs issued a grim report predicting a meager 3% annualized return for U.S. stocks over the next 10 years (or only 1% after inflation).

The report noted that the S&P 500 Index has boasted a 13% annualized return during the past decade. But high valuations and extreme market concentration—both near 100-year highs—will make it hard for stocks to repeat the same gains through 2034, the report said.

S&P 500 likely to trail bonds: Goldman Sachs

“It is extremely difficult for any firm to maintain high levels of sales growth and profit margins over sustained periods of time,” Goldman Sachs said. “The same issue plagues a highly concentrated index.”

The investment bank said the S&P 500 has a 72% probability of trailing bonds and a 33% chance of lagging inflation during the next decade.

The report prompted nervous news headlines. “Goldman Sachs Is Forecasting a Dead Decade for the S&P 500. Should You Sell Your Stocks?” one investing site pondered. “For a generation of investors accustomed to boom times, the new paradigm being contemplated would be harsh and unfamiliar,” The Globe and Mail said.

Lost decades predicted before 

But as The Globe went on to note, analysts have been warning of a “lost decade” since the start of the current equity bull market.

“We may be looking at a lost decade,” financial historian Niall Ferguson said in 2009. The S&P 500 went on to gain 16.6% a year in the decade that followed.

In 2013, economist John Hussman said “dismal investment returns” were so certain during the ensuing decade that they were “largely baked-in-the-cake.” In fact, annual S&P 500 returns averaged 11.8%.

Booms often end in busts

Giving heed to bearish fears can lead to serious portfolio underperformance. But does that mean we should ignore Goldman Sachs’ predictions altogether?

There’s no doubt equity returns have been above average. Historically, above-average performance is often followed by periods of more modest returns or even losses. A decade of 1% real returns is improbable, but it’s not impossible.

The Roaring Twenties were followed by the dismal 1930s. The great 1942-1965 market run ended with 15 years of doldrums in which the S&P 500 saw -1% real annualized returns from 1966 to 1981. After the remarkable 1982-1999 bull we had the misery of 2000-2008.

Market turns can’t be predicted   

Does this mean it’s time to pull out of stocks and hide under a rock? No one knows what the market will do. Even experts like Ferguson and Hussman get it wrong. Stocks could continue to soar. Or they could sell off or move sideways. Trying to time markets isn’t investing; it’s called gambling.

If we can’t predict the market’s turns, what can we do? At PWL, we’ve studied the data and determined that the best response is to diversify, maintain a disciplined long-term investor mindset and leave the forecasts to the horoscope pages.

Stick to the plan

Diversification also plays another role. It accounts for the fact that most wealth creation in equities comes from a tiny number of companies. Just 4% of stocks accounted for all U.S. stock market wealth creation from 1926 to 2023 above a risk-free investment in Treasuries, according to a recent study.

We can’t know which companies will be the future 4-percenters. But we can be sure to own them by buying broad index funds that hold all the companies in various markets.

No bull market lasts forever. But a long-term mindset and an investment strategy suited to your objectives and risk tolerance can give you the confidence to ignore daily market noise and not worry about whose prediction is right.

Read more commentary and insights on personal finance and investing in our past blog posts, eBooks and podcast on the website of PWL Capital’s Parkyn-Doyon La Rochelle team and on our Capital Topics website.   

TAKE ADVANTAGE OF THE EXPERTISE OF JAMES PARKYN, Portfolio Manager at PWL Capital Montreal to determine the best solution for you.