Navigating the “New Normal”

Today’s turbulent domestic and global environment is a threat to everyone’s wealth protection. At no other time have we seen risk variables that are as relevant for a 30 year old as they are a 65 year old.

“Our conviction is to provide you with your own Personal Economic Recovery Plan© no matter what stage of life you’re in.”

Critical questions:

  • Is my portfolio positioned to withstand the changes in this “range bound market?
  • How do I create an income stream when the bond market may be overvalued?”
  • What other kinds of income opportunities exist?
  • What are the risks to my portfolio if inflation accelerates down the road?
  • Does the devaluation of the dollar have any impact on my strategy?
  • Are there alternatives to fixed income/bonds that offer similar diversification?
  • What kind of wealth plan will I need if the current environment lasts for years?
  • Did anything in my portfolio provide any balance in the last market correction

Value added

We provide clients with vertical wealth management including comprehensive wealth management planning. Much of investment advice involves “Transitional Wealth Planning”(TWP). Transitional Wealth is money in motion or money being converted from one form of asset to another.
For example:

  • Proceeds from sale of a business or a business asset
  • Significant life transitions:
    — Retirement
    — Proceeds of life insurance
    — Inheritance
    — Legal settlement
  • Business related issues
    — Sale of business or business asset
    — Succession planning
    — Executive compensation plans

RBC has global perspective

The world has changed. There is a “new normal” and the circumstances surrounding that normal require investors to pay constant attention not just to their assets, but their overall wealth protection strategy.

“It has never been more critical to have an advisor who can think beyond style box management and simplistic, low-risk assumptions”.

It is no longer prudent to own an international fund to your portfolio and consider yourself globally diversified. Events of the last few years rendered traditional asset allocation practices less than effective in a crisis situation.

“Hope is not an investment strategy”

Your trusted advisor needs to be versed in and have access to world class tools and global research. Through RBC Wealth Management resources, not only do we have access to world class research, we also have the tools to prepare your portfolio for this “new normal” global environment.

A few words about strategic vs. tactical investment allocation

Tactical asset allocation seeks to add value either in the form of higher return, lower risk or some combination thereof, by making asset allocation shifts. Strategic asset allocation, on the other hand, establishes a long-term asset allocation for an investor’s specific situation and periodically rebalances the portfolio to maintain the long-term original allocation.

Compared to strategic asset allocation, tactical asset allocation is a more dynamic, forward looking approach to portfolio management. From a portfolio theory perspective, it may make sense to adjust the asset allocation based upon expected changes in the capital markets rather than simply mechanically rebalancing your portfolio.

Client Strategies Team

The Client Strategies Team is a resource to help support you in your wealth planning goals, developing a strong understanding of your personal financial objectives, gathering valuable information and addressing complex financial and wealth strategies issues. Explore the bios below to learn more about the team.