Cardinal Point Wealth Management

Your Cross-Border Financial Advisor

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  • About Us
    • Our Story
    • Our Team
    • Our Clients
    • Legal and Compliance
    • Part 3 Form CRS
    • Relationship Disclosure Information
  • What We Do
    • Investment Management
    • Wealth Planning
    • Tax Planning and Preparation
    • Private Wealth Services-U.S.
    • Private Wealth Services-Canada
    • Cross Border Wealth Management, Financial and Tax Planning Advisor
    • Business Management for Athletes
  • Cross-Border Services
    • Cross Border Wealth Management, Financial and Tax Planning Advisor
    • U.S. citizens living in Canada
    • Moving to Canada from the U.S.
    • Canadians Living in the U.S.
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Risk Tolerance and Capacity

RISK TOLERANCE & CAPACITY

Cardinal Point provides personally tailored investment management services for clients with U.S. and Canadian investment accounts. Investment strategies are customized to our clients’ risk tolerance and goals and then we work to fully integrate them into their tax, financial and estate planning initiatives.

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RISK TOLERANCE & CAPACITY

Cardinal Point provides personally tailored investment management services for clients with U.S. and Canadian investment accounts. Investment strategies are customized to our clients’ risk tolerance and goals and then we work to fully integrate them into their tax, financial and estate planning initiatives.

Let’s Talk
Risk Tolerance Balance
  • Risk Tolerance & Capacity
  • Asset Allocation
  • Investment Implementation

All of us have lifestyle goals and aspirations. Perhaps they are as simple as ensuring a certain standard of living in retirement or as complex as planning for multiple generations spread across multiple countries with specific mandates. One baseline goal for many investors is to maintain their purchasing power over time, growing their assets faster than the rate of inflation. In order to do so, investors need to take on some level of risk. As shown on the chart below, stocks over the long run do a much better job at this than bonds, which only marginally outperform inflation.

Determining the right amount of stocks and bonds for your situation is a comprehensive task, involving multiple conversations with Cardinal Point professionals in combination with an industry leading risk profile questionnaire.

There are two main considerations needed for this decision: your risk capacity and your risk tolerance. Finding the balance that will both help you reach your goals and allow you to sleep peacefully at night is an important task.

Growth of a Dollar

1926-2018
growth of dollar

Risk Capacity

Your risk capacity encompasses the constraints put on the portfolio, namely the time horizon and liquidity needs expected for the assets. For example, the need for a 15% withdraw for a home purchase in 3 years or entering retirement and supporting a 4% withdraw rate each year may necessitate that a meaningful portion of the account be held in somewhat lower volatility investments. Alternatively, higher or lower volatility in your income and job stability can have ramifications for what types of investments may make the most sense for your portfolio.

Risk tolerance

A perfectly designed portfolio that you can’t stick with through the down periods is not going to be helpful in reaching your goals. That’s where risk tolerance comes into play. Your risk tolerance has to do with your relationship with risk. Do you view a riskier investment as having the potential for higher returns, or does the idea of a holding dropping 40% in value make you queasy? Do you prefer a job where most of your income was from a steady salary or do you prefer potentially higher pay from a commission style compensation package? Higher allocations to stocks will have higher expected returns but come with considerable volatility. Bonds historically have had lower rates of return, but also much lower risk.

US/Canada Investment Accounts

Investment accounts in Canada and the U.S.?

Our team manages assets in both countries
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Goal Based Investment Strategies

Goal-based Investment Strategies

Get a complimentary review of your portfolio
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OUR RECENT PUBLICATIONS

fiduciary standard

Fiduciary Standard or a Pretender

A Cardinal Point advisor adheres rigorously to the fiduciary standard—a commitment that puts your interests ahead of those of Cardinal Point or any outside organization. Some financial advisors do not; instead, they skew their advice and investment options to ones which benefit them. For Cardinal Point clients, it is most reassuring to know that all recommendations must be made with only one concern: that this is the best thing for you.

Read more
CA US 401k/RRSP deductibility

Ebook: Canadian Deductibility of 401(K) Contributions and U.S. Deductibility of RRSP Contributions

New Ebook - Canadian Deductibility of 401(K) Contributions and U.S. Deductibility of RRSP Contributions A Canadian working in the U.S. may be offered a 401(k) plan with matching contributions by their employer. The plan will lower U.S. taxable income, but what effect will it have on Canadian taxable income? Are the matching contributions taxable in [...]

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Ramifications of Liquidating Brokerage Account

Residents of Canada: What are the Canadian and U.S. Tax Ramifications when being forced to liquidate a U.S. brokerage account Ebook

New Ebook - Residents of Canada: What are the Canadian and U.S. Tax Ramifications when being forced to liquidate a U.S. brokerage account New enforcement of existing U.S. nonresident client regulations regarding U.S. taxable brokerage accounts means that many of these accounts are being forced to close, loosely based on the location of the primary [...]

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How We Help

  • Cross-Border Financial & Tax Planning
  • Americans Living in Canada
  • Canadians Living in the U.S.
  • Moving to Canada from the U.S.
  • Moving to the U.S. from Canada
  • Expatriates Living Abroad

What We Do

  • Investment Management
  • Wealth Planning
  • Tax Planning & Preparation
  • Private Wealth Services for U.S. Residents
  • Private Wealth Services for Canadian Residents
  • Cross-Border Financial & Tax Planning
  • Business Management for Athletes

Resources

  • Canadians in California
  • Canadians in Texas
  • Canadians in Florida
  • Canadians in Arizona
  • Canadian and U.S. Expat Tax Planning
  • Wealth Management for U.S. Citizens in Canada
  • Custodian Closed Your Cross-Border Investment Account?

Videos & Social Media

  • Americans in Canada: Investment Basics
  • Americans Selling Canadian Homes Face Tax Issues
  • Does it make financial sense to renounce your U.S. citizenship?
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Copyright © 2023 Cardinal Point Capital Management, ULC. All Rights Reserved.

“Cardinal Point” is the brand under which dedicated professionals within Cardinal Point Capital Management, ULC provide financial, tax and investment advisory, risk management, financial planning and tax services to selected clients. Cardinal Point Capital Management, ULC is a US registered investment advisor and a registered portfolio manager in Canada (ON, QC, MB, SK, NS, NB, AB, BC). Advisory services are only offered to clients or prospective clients where Cardinal Point and its representatives are properly registered or exempt from registration. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.