Summer Musings

This summer I am reminded of a Chinese Proverb.

“It is better to be a warrior in a garden, than a gardener in a war”

The summer has been filled with financial news. The summer will always be filled with financial news.

The only constant, is change.

Recently I completed the Wealth Management Essentials (WME) course from the Canadian Securities Institute. I am working toward my Chartered Investment Manager (CIM) designation. The WME course stresses the ability of the advisor to understand the client’s situation. There is a host of technical knowledge about the Canadian investment and planning landscape included in the course. Part II of the course is a cased based exam. Often in the cases, the hypothetical client has opinions on the current state of the economy. What each client considers ‘the economy’ varies. Some focus on the local GDP, government bonds, international equity, taxation, markets and everything in-between. What is true in my experience is each individual comes to an appointment with an idea of how they feel about their own situation coupled with the situation at large. How each client comes to their own conclusion varies greatly.

As the leaves begin to change and I book my fall appointments I know each client has likely read up on their version of ‘the economy’. Maybe they have found themselves reading about crypto, US market highs, sovereign debt, gold, energy, commodities, real estate, index ETF fund flows, or the history of protectionism. I constantly keep up with all of the above and more. It is my obligation to my clients and myself to be informed. In the age of information access, deciding what to read and how much is overwhelming. In my case, I choose to research topics I believe relevant to my clients’ situations. I learn something each day. My goal is to be constantly preparing; intaking knowledge and shifting my perspective often.

As I book your fall appointment, I want you to know that I consider a multitude of opinions when generating thoughts about ‘where’ to invest. We consider first your goals. Then, the goal should be to choose assets that balance your risk. Risk is subjective; risk is individual. I love my career because it asks a great deal of my mental capacity. I want to build a bridge between the best available knowledge and client goals. Forecasts on any economic issue are a dime a dozen. I try to consume contrarian views on every topic I read. I do not discount conversations with clients. I learn a great deal from clients. I consider each individual’s opinions when generating advice.

If I could predict the future, I would have retired by now. What I can do is help guide decisions made to maximize client reward based on goals, while minimizing risk; based on the individual definition of risk.

The warrior in the garden comes equipped with all he may need in a place that is tranquil. The warrior is prepared for the garden to become a battlefield. The gardener is only suited for the garden. I come to the office each day hoping to sharpen my own tools. I educate myself on the battlefields we may encounter. I ensure every day stacks upon itself. Together we can generate a plan that best arms us for the future.

I look forward to speaking with each of you. May we both learn something from each other in pursuit of our goals.

Alexander Philipp BA CFP