Investing your money can feel like a very stressful and complicated process. There has never been so many options for investors to invest their money. So many options, that most investors don't even know where to start.
For any investment strategy to be successful, a robust, comprehensive process must be followed. That is why at DTR Financial, we follow the below process so that our clients have the confidence in how and why we are investing their money they way we do.
Purpose
What is the money being invested for? Downpayment, retirement planning, emergency savings? The purpose of the investment is a key indicator of the time the money will be invested for, and must be taken into account when choosing an appropriate investment for any client.
Risk Profile
Any investment carries a level of risk, and it is important to understand what each client's risk profile is. Walking through a process including real life scenarios, will identify the client's capacity and natural tolerance of investment risk. Every client is different, and this process and discussion is crucial when choosing investments.
Planning Considerations
Investments may be purchased in a variety of series, accounts, pricing structures etc. This is where we discuss what type of investment and in what type of account is most advantageous to the purpose of the investment is discussed.
Allocation
Based on the above, an allocation strategy can be developed. This strategy includes what asset classes and account types are to be used as well as how much of the investment should be allocated to each.
Investment Screening
Investments are then screened to identify options that meet all of the considerations above. Investments that meet those considerations are then further screened in order to mitigate further investment risk. Risks that could affect an investor's long term return include but are not limited to the following considerations: environmental; social; governance; currency; pricing; consistency of investment mandate; plus other factors that are deemed to be a factor in the specific investment decision.
Available investments are screened using 3rd party research from Morningstar.
Investment Selection and Review
Upon completion of all of the above, a final investment, or portfolio of investments, is then put in place. This is then reviewed on a regular basis to ensure that the investment(s) is still appropriate for the client and their needs.
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