A more Compelling reason for a Passive Approach

There is a lot of evidence that shows that active fund managers underperform the markets over the longer term. Saying active management beats passive investing over the long term is comparable to saying Tylenol causes autism. That said, there is a more compelling reason to go the passive route.

Time in the market with average returns is the winning formula to achieving your goals. If you achieve average returns for 30 years, you will rank in the top for investors. By having patience and discipline, you allow compound interest to have maximum impact on your investments, and you will increase the likelihood of hitting your goals. You don’t need to beat the market or find that one high-performing stock; just be average for 30 years.

Keep it simple and stress-free, and do it for a long time. Implementing a passive approach, typically with a low-cost, globally diversified, index-like fund for a long time, takes away guesswork and decision fatigue and significantly increases your chance of success. If there is a secret, this is it.

Survive the First Five-Pickleball and market crashes

I began playing pickleball in early September and am watching alot of videos on how to improve. There is a strategy called survive the first five. Good pickleball players’ rallies average 4 hits, and then someone will make an error. Therefore, if you can keep the ball in for four hits, the chance of you winning a point are greater because an error will occur soon. Keep it simple and keep it for five, and you will increase your likelihood of winning the point.

As an investor, you will go through 6-10 bear markets or 4-5 significant market crashes in your lifetime. These numbers are not 100% accurate because definitions are not agreed on, and investor time in the market can be very different. As an investor, survive the first 5! When the market crashes, and it will, stay invested. Better yet, keep your regular contributions going. Just like in pickleball, keep it simple, keep your money in, and you increase your likelihood of success. My belief is that your financial planner’s job is to help you not make big mistakes. We can’t control many things in trying to make you rich. We have a lot of control over our behaviours and emotions and can stop you from going broke or making the big mistakes. The next time there is a bear market or a crash, remember to survive the first five.

Investment Manager vs. Financial Planner: What’s the Difference?

Investment Manager vs. Financial Planner: What’s the Difference?

If you are getting close to retirement, you might hear two job titles that sound almost the same: investment manager and financial planner.
Both help with money, but they solve very different problems. Knowing the difference can help you choose the right help and avoid paying for services you don’t need.

What an Investment Manager Does

An investment manager looks after your accounts like RRSPs, TFSAs, or non-registered portfolios. Their main job is to decide how your money is invested and make changes when needed.

Before they invest, they will usually give you a risk tolerance questionnaire. This is a discussion and set of questions to find out how comfortable you are with market ups and downs. Your answers guide how much of your money goes into safer investments like bonds or growth investments like stocks.

Example:
Susan, 58, has an RRSP and a TFSA but hasn’t checked them in years.
She worries about losing money if the market drops just as she retires.
An investment manager reviews her accounts, checks her risk tolerance, and adjusts her portfolio to better match her age and comfort level.
Now she knows someone is watching her investments every day.

Typical Costs in Canada:
Most investment managers charge a fee based on a percentage of the investments they manage. It’s often around 0.5% to 1% per year of the total account value.
For example, if you have $500,000 invested, the cost might be $2,500 to $5,000 per year. The fund company will also charges a cost. The costs may be separated or included in the MER(management expense ratio).

What a Financial Planner Does

A financial planner looks at your whole life, not just your investments. They help you answer questions like:

• When can I retire and still live the life I want?

• How much income will I need each year?

• How do I lower taxes on RRSP withdrawals, CPP, OAS, or a business sale?

• Should I pay off debt, save more, or spend on experiences?

A good planner doesn’t just run numbers. They will talk about your values and goals—the things that bring you happiness and purpose. This might include family, travel, volunteering, or part-time work. By understanding what matters most, the planner creates a retirement plan that supports both your finances and your well-being.

Example:
David and Marie, both 60, have RRSPs, a paid-off house, and a small business they plan to sell.
They want to retire at 63 and travel every winter.
A financial planner explores what will make them happiest, runs retirement income projections, and shows a tax-smart way to draw from RRSPs and TFSAs.
They leave with a clear plan that matches their values, not just their bank balance.

Typical Costs in Ottawa:
Financial planners may charge a flat fee for a plan (often $2,000 to $5,000), an hourly rate, or an ongoing advice-only retainer (for example, $150 to $250 per month).
Some planners also offer investment management, but many advice-only planners charge only for planning and do not sell products.

Choosing the Right Help

Some Canadians hire just one professional. Others use both. The choice depends on your needs:

• If you need someone to manage and monitor your investments, an investment manager is the right fit.

• If you need a complete retirement plan that connects your money to your values and happiness, a financial planner is the better choice.

• If you want both the plan and the day-to-day management, you may work with both; just make sure you understand the costs so you’re not paying twice for the same service.

Retirement is more than numbers on a page. Whether you hire an investment manager, a financial planner, or both, the most important step is to choose help that keeps your money working for you and supports the life you want to live.

Ready to Plan Your Next Step?

If you live in Ottawa or anywhere in Canada except Quebec and want a clear, objective plan for retirement, I offer a free 45-minute planning review.
We’ll talk about your goals, your values, and what matters most to you without any pressure to buy products.