INVESTING 101 - DOES A DISCRETIONARY PERSONAL INVESTMENT ACCOUNT FIT YOUR LIFESTYLE?

 

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Make your money work for you.

Let’s take a look at the average working individual. Most days are filled with day-to-day work, meetings, personal and professional planning, and other opportunistic events to advance one’s career. During these days, a call from your investment professional may get lost in the noise of day-to-day work tasks.

It could even become a nuisance to your busy day. On the other end of the call, an investment professional could have a great idea that might need immediate attention for the betterment of your financial plan.

‘Opportunity cost’ is the loss of potential gain from other alternatives when one alternative is chosen. This means that while you are busy with your life, the opportunity an investment presents could be lost due to the choice to not address the opportunity presented.

The investment landscape has evolved, and with that evolution comes many benefits to investors. Discretionary Portfolio Management (DPM) aligns the individual personal investment goals of the client to their long-term financial goals and confirms the trust in their advisor to make the best decision on the client’s behalf.

Through the DPM process, the client is still in control of the agreed-upon parameters of their overall portfolio, however, their advisor has the ability to place trades for the benefit of the client without prior instruction.

There are many benefits of this important DPM process in the wealth management industry:

Mutual benefit to the client and advisor:
The process eliminates “selling” and instead concentrates on wealth management. Both the advisor and client benefit from an increase in client wealth and move away from the traditional commission-based approach.

Fairness:
Every account is treated on an equal playing field. Whether a client has $100,000 or $10,000,000, they will benefit from the best cost and execution of any trade. Discretionary Portfolio Managers are able to trade in the market as one large trade group instead of a series of individual small trades. This means that the execution of the trade will be done at one price rather than trying to make many trades in a moving market.

Enhanced client-advisor relationship:
Portfolio Managers look to build a portfolio to meet the short and long-term goals of their clients. This involves setting out a financial plan and tracking the progress. This relationship is built through trust and communication and may result in long-term upside if approached correctly. Having a higher degree of discretion as Portfolio Managers causes their client relationships to be more interactive at times, thus stronger.

Though Discretionary Portfolio Management is not a strategy for everyone, it does have benefits for many people. By analogy, when dealing with a health issue, you consult a doctor. When you have a legal issue, you hire a lawyer. When dealing with your long-term wealth creation goals, a Discretionary Portfolio Manager may be the right fit. Please contact Tom Stachiw, or one of our other portfolio managers if you would like to discuss further.

Please contact Tom Stachiw, or one of our other portfolio managers if you would like to discuss further. 

Click here to email Tom Buy our MATCO Funds today 

Tom Stachiw, CIM
Portfolio Manager
Local: +1-403-718-7792

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MATCO FINANCIAL INC.

Founded in 2006 to manage and service seven family offices, today Matco offers the benefits of our extensive investment management experience to individual investors, foundations, endowments, condominium corporations, trusts, corporations and not-for-profit organizations.

Our mission is to simplify the investment world for our clients by understanding their needs and providing exceptional investment solutions that preserve and grow capital.


 Matco Financial is an independent, privately held discretionary investment counsellor and asset management firm that serves the needs of individual investors, institutions, advisors, trusts, corporations and not-for-profit organizations. Matco provides investment advisory services to investors on a discretionary basis through mutual funds and separately managed accounts. This communication is intended for information purposes only and does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Matco Financial Inc. makes no representations as to the accuracy or any other aspect of information contained in other websites. All statements that look forward in time or include anything other than historical information are subject to risks and uncertainties and are not guarantees of future performance. Investors should not rely on forward-looking statements. Actual results, actions or events, could differ materially from those set forth in the forward-looking statements.

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