Why don’t we just all drive tanks?

Why don't we just all drive tanks?

Safety is priority #1 when on the road but if it was our sole concern then why wouldn’t we all just drive tanks and ensure a safe ride every time? Reason being, there is always a trade-off between risk and reward in all aspects of life. In our example, driving a tank would provide a safe ride, with the trade off being: longer trips, cost a wallet-full for gas and finding parking would be a nightmare.

Obviously we are not going to purchase a tank just to be safe but I can’t help but think that people who ask me to put all their money into GICs, so they don’t need to worry about the market, share the same mentality. It is a solution, but similarly to how the tank only addresses the issue of safety, GIC investors would be trading off the ability to keep up with inflation through stock market growth. This is why you need a balanced mix of assets.

Simply put, I would love to own a Ferrari. It would be fun, but it is expensive (trade-off) and my family of 4 (plus dog) would be in no way happy about the decision (trade-off). Okay, my 9 year old son may be happy…

What we find is that most people will drive a vehicle that has a balance to fit their lifestyle. If you have a family with a dog, like myself, you are going to choose a minivan over a Ferrari. If you are young, single and have a great income, then perhaps a sports car is for you. There is not one vehicle that will be appropriate for every individual’s situation just the same way that there is not one asset mix that will be suitable for every individual’s tolerance for risk

Mike Connon, B.Sc, CFP
Senior Financial Planning Advisor, Co-Branch Manager, Certification in Estate Planning and Trust Strategies

Related articles

Expected Rate of Returns in Retirement

In this episode from “Think Smart with TMFG”, Senior Financial Advisors Rob McClelland and Mike Connon with Assante Capital Management Ltd. provide an insightful discussion on the critical role of rate of return expectations in retirement planning. B…

Read More →

All-In on U.S. Stocks – Wise Move or Risky Strategy?

In the latest episode of “Think Smart with TMFG,” Senior Financial Advisors Rob McClelland and Mike Connon from Assante Capital Management delve deep into a daring investment strategy: putting 100% of your assets into U.S. stocks. Highlighting an int…

Read More →

2023’s Most Valuable Companies

In this episode of Think Smart with TMFG, host Rob McClelland and Mike Connon, Senior Financial Advisors of Assante Capital Management Ltd., delve into the world’s most valuable companies in 2023. They offer insights into the various sectors these co…

Read More →

Financial Planning Advice from Canada's Top Financial Advisors

Sign Up To Receive Email Updates On The Financial Industry And Complimentary Workshops.

By providing your e-mail address you provide The McClelland Financial Group of Assante Capital Management Ltd. with your express consent to send you electronic communications. If you choose to discontinue receiving e-mails, you may withdraw consent by contacting [email protected].


Get actionable financial insights from the Top financial planners in Toronto.

Toronto's Top Financial Advisors
Copyright Assante Wealth Management. © 2022

Disclaimer | Assante advisory services are offered through Assante Capital Management Ltd. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. The services described may not be applicable or available with respect to all clients. Services and products may be provided by an Assante advisor or through affiliated or non-affiliated third parties. Some services and products may not be available through all Assante advisors. Services may change without notice. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

We have a team of advisors each specializing in varying portfolio sizes. Please let us know the approx. amount of your investable assets to help us to direct you to the advisor that is best suited to you.