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Paul Vorstadt

Financial services professional Paul Vorstadt serves as a portfolio manager with National Bank Financial in Toronto and offers guidance in risk, wealth, and portfolio management. In philanthropic matters, Paul Vorstadt previously co-chaired a golf tournament on behalf of the St. John’s Rehab Foundation.

A division of Sunnybrook Health Sciences Centre, St. John’s Rehab provides specialized inpatient and outpatient rehabilitation services from its facility in Toronto. Individuals with serious illnesses and injuries utilize this hospital for physical, emotional, and psychological aid. Its professionals treat individuals recovering from strokes, burns, organ transplants, and cancer. Also responsible for performing research into rehabilitation science, St. John’s Rehab requires money from the public to continue offering superior care.

In January 2014, the St. John’s Rehab Foundation ceased its fundraising activities after 30 years. Although it continues to distribute its pre-existing assets and funds, such as multi-year pledges and endowments, the organization decided to stop actively seeking new monies. Recognizing the importance of St. John’s Rehab to Canada’s aging population, Sunnybrook Health Sciences Centre will take on the fundraising responsibilities and continue to support the group’s efforts. The board of St. John’s Rehab Foundation will advise during this transition.

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

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It is important to understand to know that no two plans should be the same. Everyone has their own set of unique circumstances that need to be accounted for. Below is a good start as to what a comprehensive financial plan should include:

 Goals and Objectives: An understanding needs be established of where you are going and why. On top of this your goals and objectives should be shared with all key advisors.

 Time Frames: It is important to differentiate between short, medium and long term goals as well as identify strategies and assets to coordinate with those specific goals.

 Balance Sheet: A look at your current assets and liabilities gives you a starting point. What resources do you currently have that can be used more effectively to achieve your goals.

 Income and Cash Flow Statement: As with the balance sheet your cash flow statement tells you what your lifestyle expenses are, your taxes owing and what is left over that can be put towards your goals.

 Risk Management: Before you can begin looking at your investments we must protect your assets. You want to be prepared for poor economic times, health care issues, and other unexpected financial emergencies. Many excellent profitable investment portfolios have been undone by poor financial planning.

 Strategies/Action Plan: Once you have a clear understanding of where you are and where you want a go you can start looking at specific strategies. These strategies include being prepared for emergencies/opportunities, tax plans, income plans, education, retirement, estate as well philanthropic. All of these strategies will change over time.

 Projections: Projections allow you to look at how your strategies will impact your ability to achieve your goals through your assets, liabilities, net worth, income and cash flow statements. These projections will be partially based on assumptions. It is vital that your assumptions be realistic, reviewed and adjusted yearly.

 Stress Test: It is important to recognize that regardless of how complete and comprehensive your plan is, it is an absolute certainty that the actual results will not be exactly as illustrated. The main culprit is that there are events that fall outside of this plan that we cannot control such as financial markets or the economic climate in general. The point of the stress test is to look at the “what ifs” and see how your plan will hold up.

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).
Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

In the early to mid-90’s most banks, Insurance and Mutual Fund Companies were promoting the importance of a financial plan. The reality is that many of these early plans were created simply to support and promote the sale of financial products. It was the selling of a financial product that led to the commoditization of the financial service industry (but that’s a discussion for another time). As the purpose of these early plans was simply to help sell product their scope, was very limited. The software was simplistic; it didn’t allow for “what ifs”, alternate scenarios and advanced tax strategies. At the same time much of the data/assumptions being used were completely unrealistic (double digit returns, markets that never go down, assumed tax rates, etc).

 As the markets continued to climb, more and more product was sold with the backing of the financial plan. It was the market crash in 2000 and more recently 2008 that exposed the disconnect between these plans and reality. The road to financial independence is not linear, in reality there are many pot holes that must be navigated before we can successfully reach our goals.

Due to the fact that reality is not linear, people should have a plan. If asked, the majority of people would instinctively agree that financial planning is good for them, yet only 20% of Canadians have a comprehensive financial plan. The truth is Canadians need a compressive financial plan.1 Not only has it become increasingly more complicated to achieve financial independence, but there are so many more potential risks to your financial health including, loss of income, health concerns, down markets and sudden emergencies, etc to touch on only a few.

The key is being prepared prior to being faced with one of life’s uncertainties. The goal is to protect your net worth by anticipating contingencies allowing you to stay calm and make better decisions versus emotional decisions. In that sense, what distinguishes prepared investors is their ability to anticipate contingencies exceeds their ability to predict the future.

According to the Value of Financial Planning  study commissioned by FPSC, 83 per cent of Canadians who engage in comprehensive financial planning said they feel in control of their finances while 64 per cent with financial plans feel prepared to manage through tough economic times compared to only a third (33 per cent) without plans.1

I would like to challenge those who responded that even without a plan they are prepared to manage through tough economic times. What is it that makes them believe that they will be okay? Is it wishful thinking or the proverbial “it won’t happen to me”?

As per my last post (Time To Review), I would like to reiterate that an investment plan is not a financial plan. Developing a plan takes a great deal of time, energy and patience. It is important to have an understanding of your own personal biases towards money, debt, investments and risks. You need to analyze multiple scenarios, and not just the rosy ones but also the scary “what ifs”. Conversations need to be had with family members and all key advisors. (To see what goes into a financial plan click here)

With all the complexities that Canadians face in their attempt to achieve financial health, it has never been more imperative for people to have a financial plan. Canadians have to start treating their household finances the same as any successful business would. “Planning is bringing the future into the present so that you can do something about it now.” Alan Lakein

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. “It’s Time to Get over ‘Getting by'” Financial Planning Standards Council Cary List, President & CEO, FPSC November 17, 2013, http://financialplanningweek.ca/news/its-time-get-over-getting

     

     

    © NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
    National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).
    Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

Toronto-based discretionary portfolio manager Paul Vorstadt presently serves as a portfolio manager with National Bank Financial. To prepare for his career, Paul Vorstadt studied economics at Wilfrid Laurier University.

In addition to their conventional roles as banking professionals or portfolio managers, people who earn a degree in economics now find that they have career options available in a wide array of fields, including commercial business, government, and education. The average student who graduates with an economics degree is highly competitive as compared to peers with other business degrees, as large organizations value the analytical training economics students receive.

For individuals who have studied economics, there are a number of government positions available, including agricultural and urban economics agencies. In some states, general economics education is required to teach at the high school level, which gives graduates in the field an advantage over their peers. Some common professional titles for economics majors include project administrator, operations research systems analyst, and statistician.

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

A portfolio manager for National Bank Financial, Paul Vorstadt makes sure to keep his clients informed about the ups and downs of financial markets. Additionally, Paul Vorstadt encourages his clients to ask questions of their financial planners rather than trusting them implicitly. Significant differences exist between planners, with two major philosophies dominating within their ranks.

Fiduciary planners are legally required to place the client’s interests ahead of their own and their firm’s. They must exercise prudence in making their recommendations and must disclose important aspects of any financial entities. They must have no conflicts of interest. If such conflicts are unavoidable, they must manage them in the client’s best interest.

Suitability planning, by contrast, maintains that investment decisions must only be suitable to the client’s particular situation. Regulatory authorities mandate that brokers have a “reasonable basis” for their decisions.

Investors should ask several questions of their advisors. For example, they should always ask whether the advisor is fiduciary, making decisions in the investor’s best interest, or whether the advisor believes in suitability instead. They should ask whether the advisor will reveal all necessary facts about financial products, such as conflicts of interest. Finally, investors should ask in advance what fees and expenses will apply to their account.

 

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

Paul Vorstadt has served the Toronto area as a financial expert for more than two decades. Paul Vorstadt serves National Bank Financial  as a discretionary portfolio manager.

Discretionary portfolio managers are financial investors who oversee the daily activities necessary for strategic investment. Because they can make buy and sell decisions without consulting their clients on each individual investment, they enjoy a great deal of freedom and flexibility, though they are still bound by their clients’ predetermined investment guidelines.

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Unlike stockbrokers, who only act on direct orders from the client, discretionary portfolio managers can make real-time decisions should an appropriate opportunity present itself. For example, they can assist individuals who have suddenly come into a large amount of capital that they wish to invest over a long period of time rather than deposit into an ordinary savings account.

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

 

Paul Vorstadt serves as a portfolio manager at National Bank Financial. In his role as a portfolio manager, Paul Vorstadt leverages years of experience helping clients to make sound investment decisions.

What does a portfolio manager do?

The portfolio manager, or PM, is the person with the most authority in client communications. The PM not only manages clients’ investments, but may also advise clients about when, where, and with whom to invest. The PM becomes intimately familiar with clients’ investment histories, current accounts, and plans for the future, and often has authority to make investment decisions for the client.

What is the role of an investment advisor?

An investment advisor, or IA, essentially helps clients make the wisest choice with their money. Whether clients are investing for retirement, savings, or general protection, IAs help make the investment process less complex and guide clients on how to achieve their financial goals.

© NATIONAL BANK FINANCIAL. All rights reserved 2013 – 2017.
National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

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