Adam McHenry, CFA, MBA
Portfolio Manager, Raymond James Ltd.

I’m Adam McHenry, a Portfolio Manager at Langill and McHenry Investment Advisors of Raymond James Ltd. With two decades of experience in the finance industry, along with my CFA and MBA designations, I’ve built a wealth of knowledge that I wish to share with you today. This article lays out my top 10 investment tips, a set of rules to follow that will provide you with the foundation for successful investing.

1. START EARLY AND THINK LONG-TERM:
Time is the greatest asset when it comes to investing. The sooner you start, the more time your investments have to grow and compound, turning modest contributions into substantial gains.

2. DIVERSIFY YOUR PORTFOLIO:
Never put all your eggs in one basket. Diversification helps spread risk across different asset classes and sectors, mitigating potential losses.

3. INVEST IN WHAT YOU UNDERSTAND:
If you have consumer debt and other non-deductible loans, now is a good time to pay them off. Start with the highest cost first, such as credit cards with double-digit interest rates.

4. AVOID EMOTIONAL INVESTING:
It’s essential to approach investing with a level-headed, strategic mindset. Avoid letting fear or greed influence your decisions.

5. HAVE A CUSHION FOR EMERGENCIES:
Before you start investing, it’s wise to set aside a certain amount of money for emergencies. This ensures that you won’t need to sell investments under unfavourable conditions.

6. PLAN FOR TAX EFFICIENCY:
A tax-efficient investment strategy can enhance your returns significantly. Be sure to take advantage of taxadvantaged accounts and consider the tax implications of your investment decisions.

7. INCORPORATE DOLLAR-COST AVERAGING:
By investing a fixed amount at regular intervals, you can mitigate the risk of market volatility, avoid making poor timing decisions and take the emotion out of investment timing decisions.

8. REBALANCE YOUR PORTFOLIO REGULARLY:
Over time, some investments may outperform others, causing your portfolio to drift from its initial asset allocation. Regular rebalancing helps maintain your intended risk level.

9. SEEK PROFESSIONAL ADVICE:
No matter how savvy you are, professional financial advisors can provide tailored advice and strategies that align with your specific needs and financial goals. Your professional financial advisor will help you create an investment plan suitable to your unique circumstances.

10. REGULARLY REVIEW YOUR INVESTMENTS:
Set aside time to regularly review your portfolio. It enables you to adjust your investments in line with changes in the market or your financial goals.

Investing can be complex and daunting. But with a solid understanding of these principles, you can navigate the investment world with greater confidence and security. If you want to learn more or seek guidance about your personal investment journey, I am always available to help.

I believe in fostering deep, lasting relationships with my clients, helping them build a secure financial future that aligns with their individual goals and dreams.

Feel free to reach out to me, Adam McHenry at adam.mchenry@raymondjames.ca, or via phone at 416-901-6500. Let’s collaborate to construct a financial plan, and an investment strategy that stands the test of time.

*Source: Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The views are those of the author, Adam McHenry, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member Canadian Investor Protection Fund.