Most portfolios we are asked to review need work in the following areas:
— International representation, as most are overly invested in Canada.
— Diversification is another sore spot. Some are over diversified, while others are overly concentrated in one sector or stocks.
— Most portfolios simply do not reflect what the expectations the investors have of their investments. They might have a very conservative portfolio yet complain of low returns.
— Fees are also something we will review carefully. Many investors simply do not have an appreciation of the explicit and implicit fees associated with their investments.
— Tax optimization is also something we review. When you are in the high-income tax bracket, where you own a particular investment can make a world of difference in your after-tax return.