Your Money: Planning, Patience, Partnership – Three steps for maximizing investment performance

By Matt Solberg on September 3, 2022.

There is nothing particularly difficult about building an investment portfolio. But making that portfolio pay off is another story. There are some key fundamentals to investment success: partnership, planning and patience.

Partnership is about getting professional advice. Planning is about the establishment of goals. Patience is about thinking long-term. Making all three work together successfully is the key to consistent investment success.

A good place to start is partnership and that means getting some professional advice. A financial planner, working in partnership with you, can bring great value to the basic construction of your portfolio. That professional partnership can help you figure out the distribution of your assets, ensure that your investments are in line with your personal financial goals and that the investments are reviewed regularly.

Planning is the next key component. Identifying your goals, now and for your future and taking account of lifestyle issues. Considering how much money you have to invest and how frequently you are prepared to invest it. The key is to think long and hard about your needs before you just jump-in and buy an individual or group of investments, whether they are, bonds, mutual funds or Guaranteed Investment Certificates.

Once you have successfully established a level of trust and partnership with your financial planner and figured out what your financial plan is, don’t delay. Get started early. There is no better time than now to begin.

And that brings us to patience. Rome wasn’t built in a day, and no investment is going to pay-off overnight. Steady long-term thinking is the key. So try to invest regularly, set up a schedule with your investment advisor. This method makes it easier to save and gives your money more time to grow and if you are putting your money into an RSP or TFSA, it can grow tax-deferred or tax-free and that compounded growth can be remarkable.

Partnership with a financial planner, and planning your portfolio carefully, coupled with patience and long-term thinking represents the basics to success for many investors, and with good reason. They pay off.