Whether you are getting them digitally or in the mail, you should be receiving your statements regularly. BUT, other than the dollar figure, many people aren't sure what they should be looking for when it comes to their statements. This month I'm going to give you the list of items that you should check when you get your statement.

When Should You Receive Your Statements

First thing is first, when do you get your statements? The quick answer is it depends on where your assets are being held.
 
Investment Firm: Most investment firms send out quarterly statements. This includes accounts held with KLT/Q Wealth.
 

Insurance Companies/ Work Plans: If you are part of a group pension or an insurance-linked investment, their statements tend to be sent every 6 months - in July (for January to June) and January (for July to December). This includes any guaranteed investment products (other than GICs) such as market-linked guaranteed products, annuities, segregated funds, etc.
 
No matter how often you get your statements, the yearend statement is more detailed and often gets sent out later in the month than any other. The yearend statement is also the statement that you should pay the most attention to.

What to Look at on Your Statement

Now that you know when you get your statement consider what information you should be looking at:
 
Performance and Risk Tolerance: 

The most important item to consider in assessing your investment performance is your risk tolerance. All risk levels range between a protection focus and a growth focus. Low risk portfolios are focused on protection over their growth whereas high risk portfolios are focused on growing assets with little regard to the volatility - other risk levels are somewhere in between the two.  Growth is stock market exposure. Protection is protection from stock market volatility.



How to evaluate investment performance:

• You know your risk tolerance (if you're not sure, ask).
• Look at your portfolio’s performance compared to the markets over the same period?
• Given the above diagram compare your performance to the performance of the overall stock markets. For example, a high risk portfolio should do as good, or ideally better, than the stock market because it has a high degree of market exposure. A Low risk portfolio performance should have little to no relation to the market’s performance. And a balanced portfolio should be around half the performance of the stock markets.
• Does the performance you see match the expectations given your risk tolerance? If yes – that’s great. If it has under or over-performed, reach out to your advisor.

Fees:

It doesn't matter where your investments are held, there will be fees. There is no “no-cost” investment platform out there. Companies need income to function.

If you are not paying embedded fees you should see the fees as they're being charged within your transaction history. However, if you are being charged embedded fees, the yearend statement will show you how much you paid for the year to both your advisor and any fund/investment companies.

After looking at your fees you should ask - are they reasonable for the service you receive? You should be hearing from your advisor regularly. Are they reaching out via email, newsletters, and/or phone regarding financial planning and your investments? Do they respond to you when you reach out?

This is a good time for me to plug our podcast. We host a monthly podcast, "Building Wealth on the Go", in which we discuss the markets, financial strategies and investing. You can find it on Spotify or Apple Podcasts. 

Beneficiary:

Some statements list your beneficiaries. This is a great opportunity to make sure you have a beneficiary named on your registered accounts (RRSP, RRIFs, locked-in accounts, pensions and TFSAs) or insurance-linked accounts. 
 
Portfolio Manager’s /Advisor's Name:

This might seem like an odd thing to check but that doesn't mean you shouldn't. Your portfolio Manager or Advisor is always listed on your statement. It doesn't hurt to double-check that the name on your paperwork hasn't unexpectedly changed due to retirement or servicing changes. If it has changed, your new advisor will be listed along with their contact information. Reach out to your new advisor to see if they are a good fit for you and your goals.
 
Statements always have a lot of information on them - if you look at nothing else, you should check these four items to get a good overall look at your accounts. Additionally, I recommend that you register for online access. This will give you access to past statements and tax slips. This is especially helpful if you need financial information on holidays, evenings, or weekends when it can be harder to get ahold of your advisor – which can happen.
 
To discuss your statement, risk tolerance, update your beneficiary or register for online access, contact us at KLT Wealth Management.

- Courtney Beach, QAFP

 

The chickadee saves 60,000 seeds for the long winter. To remember where all its seeds are saved, its brain increases 30% in the fall. It teaches the importance of saving.

Without a plan, budgeting and saving can feel stressful and overwhelming.

One of the first things you need to know to make a budget, is how much money you have coming in before you spend.

Making a budget will help you identify money to put towards your savings goal.

Coldest Night of the Year

KLT Wealth Management is proud, once again, to support the Coldest Night of the Year Fundraiser. Together, we provide donations that fund critical services at the Wilmot Family Resource Centre, a local charity partner who serves and supports vulnerable families and individuals in our community.



Last year WFRC reached 147% of their fundraising goal!
Click the image below to help our team support the cause.

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