Portfolio vs. Plan

Portfolio vs. Plan

Disaster at Mongo’s

For those who’ve never been to Mongo’s, it’s a stir fry restaurant where you get to choose your ingredients buffet style.

You’re given a bowl, and you can fill it up as much as possible. Since there are no rules, it inevitably becomes a competition of who can fill their bowl to the fullest.

My problem is that I have no discipline. I take a little bit of this, a little bit of that, and I end up with a mish-mash of meats and sauces that don’t work with each other at all. To make matters worse, once they start grilling it up, they offer to add rice and an egg. Hey, I like both of those; why not add a few more flavours.

As you can imagine, even though my stir fry is made up of ingredients I enjoy, it never comes out as the 5-star dish I expect.


Portfolio vs Plan

It’s the same thing when it comes to investment portfolios.

A portfolio is just a group of investments put together with no rhyme or reason.

On the other hand, an investment plan is a culinary masterpiece where each component of the dish is carefully considered.


Do you have a portfolio or a plan?

An investment plan will incorporate the following:

  1. Owning tax-efficient investments in a TFSA or Non-Registered Account
  2. Holding tax-inefficient investments in an RRSP
  3. Knowing how you will draw down your investments for your retirement needs
  4. Rebalancing if the market rises or falls
  5. Using the Bucketing Strategy to ensure you don’t run out of money in retirement

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Marc Sabourin is a Winnipeg-based Financial Advisor and Retirement Specialist with Harbourfront Wealth Management. His specialty is working with pre-retirees and retirees who are looking for retirement, investment, & tax advice. 

Disclaimer: The views expressed are those of Marc Sabourin, Certified Financial Planner, and Investment Advisor, and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund