Matt Litke, QAFP

Our population and food demand will go up, but regenerative farming and reimagined livestock production will keep agriculture emissions down. Read RBC Economics & Thought Leadership’s new report to learn more. http://rbc.com/netzero

Why Smart Investors Still Choose to Work With Financial Professionals In an age where investing is as easy as downloading an app and tapping a few buttons, the appeal of going it alone has never been stronger. DIY investing promises control, lower costs, and the satisfaction of doing it yourself. And for many, that’s enough—until it isn’t. Let me be clear: there’s nothing wrong with taking an active interest in your finances. In fact, that curiosity is a strength. But when it comes to building real wealth, planning for retirement, or navigating complex financial decisions, there’s a big difference between managing money and managing your future. Here’s where DIY investors often run into trouble—not because they’re not intelligent or capable—but because they’re human: 🔄 We make emotional decisions. Behavioral finance studies have consistently shown that the average investor underperforms the market—not due to bad investments, but due to bad timing. Panic-selling during downturns. FOMO-buying at market peaks. Sitting in cash too long after a loss. Sound familiar? 📉 We react to markets, rather than plan around life. DIY investing often focuses on beating the market. Financial professionals focus on aligning your money with your goals—whether that’s retiring early, funding your child’s education, or building a legacy. It's not about “winning” in the short term. It’s about not losing sight of the long term. 🧾 We don’t know what we don’t know. Are you making the most of tax-advantaged accounts? Are you prepared for the tax impact of selling an investment? Are you drawing income in retirement in a tax-efficient way? These aren’t questions most DIY investors are thinking about—but they should be. 🧠 Information isn’t the same as wisdom. Sure, you can Google the basics. But a good financial professional brings insight from experience, planning across market cycles, and an objective perspective that’s hard to give yourself when your own money is on the line. 📊 The value is more than returns. According to FP Canada and global research, working with a certified financial planner can lead to better financial outcomes, improved confidence, and reduced stress. It’s not about beating the market—it’s about staying the course, optimizing decisions, and making fewer mistakes along the way. ________________________________________ So, what’s the real value of working with a professional? Peace of mind. Strategy. Accountability. Someone to help you zoom out when emotions take over. Someone to show you what’s possible—not just what’s trending. You can DIY your investments. But should you DIY your future? #financialplanning #investing #wealthmanagement #retirementplanning #valueofadvice #financialwellness #behaviorgap #financialconfidence #fpCanada

The Hidden Cost of Going It Alone: Why Investors Lag the Market In the world of investing, the allure of beating the market is powerful. Investors often scrutinize advisory fees, convinced they’re the main drag on portfolio performance. Frustrated, many turn to self-managing their investments, chasing hot stocks or trendy assets like cryptocurrencies in hopes of outpacing benchmarks like the S&P 500. Yet, year after year, data reveals a stark reality: the average investor significantly underperforms the market. The culprit? Not fees, but behavior. Here’s why investors fall short and how they can close the gap. The Performance Gap: Investors vs. the Market The DALBAR Quantitative Analysis of Investor Behavior (QAIB) paints a sobering picture. In 2024, the average equity investor earned an annualized return of 16.54%, while the S&P 500 delivered 25.05%—a gap of 8.51%. Over 30 years, the 2025 QAIB report shows equity investors averaging just 5.53% annually, compared to the S&P 500’s 10.16%, resulting in a persistent underperformance of 4.63% per year. This gap compounds over time, turning modest savings into missed fortunes. Consider this: a $100,000 investment in 1995 tracking the S&P 500 would have grown to roughly $1.8 million by 2025 at 10.16% annually. The average investor, earning 5.53%, would have just $500,000—a shortfall of $1.3 million. This isn’t a one-off; it’s a decades-long trend driven by systemic issues in investor behavior. Why Investors Underperform 1. Emotional Rollercoasters: Markets are volatile, and so are human emotions. Investors often buy at peaks fueled by optimism and sell during dips driven by fear. DALBAR’s studies show that attempts to time the market—jumping in or out based on news or sentiment—lead to missed opportunities. The S&P 500’s best days often follow its worst, and missing just a handful can devastate long-term returns. 2. Chasing the Shiny Object: Self-directed investors frequently pile into concentrated bets—think individual stocks, sector funds, or volatile assets like crypto—hoping for outsized gains. While these can soar in bull markets, they crash hard in downturns. Vanguard’s 2023 research highlights that diversified portfolios, often managed by professionals, deliver superior risk-adjusted returns compared to concentrated, self-managed strategies. 3. The Cost of Overconfidence: Many investors overestimate their ability to pick winners, leading to excessive trading. Each trade carries costs—commissions, taxes, and bid-ask spreads—that chip away at returns. The 2025 QAIB estimates that frequent trading shaves 1-2% off annual performance compared to a passive, index-tracking approach. 4. Misjudging Risk: Investors who ditch balanced portfolios for aggressive strategies often focus solely on returns, ignoring volatility. A tech-heavy portfolio might spike 30% in a good year but plummet 40% in a bad one, compared to a diversified portfolio’s steadier 8-10% annualized return. Metrics like the Sharpe ratio reveal that professional management often outperforms when risk is factored in. The Fee Fallacy Fees are an easy scapegoat when portfolios lag, but the data suggests they’re not the primary issue. Advisory fees, typically 0.5-1%, pale in comparison to the performance drag from poor decisions. Vanguard’s Advisor’s Alpha study estimates that professional guidance adds 1.5-3% in value through diversification, rebalancing, and behavioral coaching—often more than offsetting costs. Investors who go it alone, seeking to avoid fees, frequently make costly mistakes that dwarf any savings. Closing the Gap So, how can investors align their results with the market’s? Here are strategies grounded in data: • Embrace Discipline: A diversified portfolio aligned with long-term goals, coupled with regular rebalancing, reduces the urge to chase trends. Professional advisors can provide the structure needed to stay the course. • Think Long-Term: Markets reward patience. A buy-and-hold strategy tracking a broad index like the S&P 500 often outperforms active trading over time. • Leverage Low-Cost Options: For those drawn to self-managing, low-cost ETFs like those mirroring the S&P 500 minimize fees and trading errors while capturing market returns. • Value Expertise: Professional advisors don’t just pick stocks—they manage risk, optimize taxes, and keep investors grounded during market swings. Their value lies in preventing costly missteps. The Path Forward The data is clear: investors underperform not because of fees but because of behavioral traps—emotional trading, overconfidence, and misaligned risk. The S&P 500’s steady climb rewards discipline, diversification, and a long-term perspective, qualities that professional management reinforces. Before investors ditch advisors to chase the next big thing, they should consider the numbers: a balanced, professionally guided portfolio often outperforms a DIY approach when risk and longevity are factored in. In investing, slow and steady doesn’t just win the race—it builds wealth. Sources: • DALBAR Quantitative Analysis of Investor Behavior (QAIB) 2024 and 2025 • Vanguard Advisor’s Alpha, 2023. • S&P 500 historical returns data, 1995–2025.