Smart Risk Magazine Spring 2018 | Page 8

8 ASK ASK MAILI SPRING 2 0 1 8 Maili A COLUMN TO HELP YOU ANSWER YOUR FINANCIAL WELLNESS QUESTIONS "WHAT IS A REASONABLE RATE OF RETURN TO EXPECT ON MY PORTFOLIO?" – JAMIE S. DEAR JAMIE, it really depends on many factors such as your objectives, risk tolerance and your overall financial picture. As well, consider the relationship between return and risk. While many investors seek higher return, they often forget to consider the risks that go along with it (i.e. market volatility and risk of losing one’s capital). Instead of selecting investments based on what did well recently, resist the urge of "SHOULD I MANAGE MY INVESTMENTS ON MY OWN OR USE A PROFESSIONAL FINANCIAL ADVISOR?" – RYAN R. MAILI WONG, CFA, CFP, FEA Maili Wong is a Vancouver-based First Vice-President and Portfolio Manager with over 17 years of experience in helping clients achieve their financial purpose and goals. Maili was born and raised in Vancouver, and worked on Wall Street in New York City for five years, during which she helped manage over $5 billion in assets for a global investment fund. In 2006, she returned to Vancouver to help individuals and families find a better way to invest. She has been the recipient of numerous awards including her nomination as a YWCA Women of Distinction in 2017, as a TedX Speaker in 2016, and as a winner of the Business of Vancouver's Top 40 Under Forty Award in 2012. Respected and recognized for her progressive investment methodologies, she is one of few women who rank among the top financial advisors in this country. She is a best-selling author of the book, Smart Risk: Invest Like the Wealthy to Achieve a Work-Optional Life that launched in Times Square New York in 2016 which became a bestseller on Amazon (find out more at smartriskinvesting.com). Connect with Maili. To submit any of your questions to the “Ask Maili” column in the next issue, feel free to email your questions to [email protected]. chasing past performance. Focus forward- looking on your priorities to determine the best asset mix (proportion of stocks, bonds and other assets). This is where having a Financial Plan that outlines your key goals and tolerance for withstanding the market’s ups and downs can help you create a suitable Investment Plan that uses a disciplined approach to target a risk and return profile that fits your needs. DEAR RYAN, advisors range in expertise and may charge a fee for services, but often the value outweighs the cost. A professional financial advisor can offer expertise and guidance to help you focus on actions that add value beyond what one could accomplish on their own, including: • • Creating a financial plan that includes retirement, insurance and estate planning, to fit your needs and risk tolerance. Providing financial education and helping you overcome behavioral tendencies or biases that may prevent you from achieving optimal financial results on your own. • Structuring an investment portfolio along the factors that lead to higher expected returns. • Diversifying globally while keeping costs, turnover, and taxes low. • Helping you stay focused and disciplined through market swings so that you can achieve your long-term goals. "WHAT IS AN INVESTMENT PHILOSOPHY AND WHY IS IT IMPORTANT?" – SAMUEL K. DEAR SAMUEL , an “investment philosophy” is a set of guiding principles that inform and shape an individual's investment decision-making process. It’s important to have one that you can stick with. Why? Because volatile markets can be stressful for investors. But volatility also can be viewed in a more positive light. Rapid price changes show that markets are working as they quickly incorporate new information. Once you have a robust investment philosophy that allows you to stack the odds of success in your favour, you may have greater confidence in taking a long-term view of investing and tune- out the daily noise. Sooner or later, the markets will test your resolve. Just as a personal philosophy helps you deal with adversity in other areas of life, a sound investment philosophy can help you withstand the ups and downs and stay the course to achieve the long-term benefits.