Policy Statements

A Policy Statement is a document that is prepared to help clarify and provide basic guidance in the decision making process. Although having clearly defined goals and objectives for your money is an important component in selecting appropriate investments, your financial resources, risk tolerance and preferences must also be taken into account. Our documents are created as part of a financial, investment or retirement plan and will help to ensure the management of your money is based on mutually agreed upon guidelines and limitations while serving as a benchmark of your expectations of performance.

The Elements of a Policy Statement

Financial Situation

  • A basic net worth statement outlining your assets and liabilities
  • Sources of income compared to estimated income tax, debt service and lifestyle needs
  • Retirement and estate planning assumptions

Risk Tolerance

Based on the information provided and your investment philosophies and goals, a recommended allocation for both your registered (RRSP/RRIF/TFSA/RDSP) and non-registered investments

Current Asset Allocation

Based on information provided by you, the current allocation of your personally held registered and non-registered investments as well as the overall allocation

Assumptions used in the Financial Plan

The assumed inflation and return assumptions used in a financial plan. The same assumptions are also used when estimating the weighted return of all asset allocations

Implementation

A description of the steps and methods used when implementing your policy statement

Policy Statement Disclosure and Agreement

Disclosure and agreement that the Policy Statement reflects your wishes regarding how your investments should be managed in the future

Limitations on Assumptions

Policy Statements are prepared to assist us when making recommendations. Although great care is taken to ensure the accuracy of all aspects of the Policy Statements, it should be kept in mind that the contents are based on numerous assumptions. All rates of return used in Policy Statements are based on historical averages of the various asset classes that are relevant to you and your portfolio. They are not intended as promises or guarantees of future returns, and you should not treat them as such, as future returns will vary and cannot be estimated with any accuracy.