While stability has always been at the core of wealth management, there are recent industry changes.
“The industry is constantly evolving,” explains Robert Armstrong, head of multi-asset strategies with ATB Financial. “While investors have more options available than ever before, the product proliferation is now overwhelming wealth management and the many choices sometimes complicate investment decisions.”
“The portfolio is not just Canadian equities and bonds anymore. Canada represents just 3 per cent of the world’s equity markets. Investment portfolios are more global, more diversified and more sophisticated than ever before. There are many global macro considerations that are required when managing risk while delivering strong long-term returns. What is called alternative investments also experienced rapid growth, driven by regulatory clarity that facilitated the introduction of alternative investments to the market. We also saw many products come to market in Canada from many financial institutions.”
The rapid growth of investment products in the market has democratized access in many ways. However, just because a product is available does not mean it is appropriate in all investor portfolios.
Glen P. Zacher, certified financial planner, CEO, founder and owner of McGuire Financial Group, notes that, “Especially over the past five years, wealth management has undergone significant change driven by shifting client expectations, rapid technological advancement and increased economic uncertainty.”
Investors today are more informed and more engaged, which has pushed advisors to adopt a more holistic, client-centered approach.
Instead of focusing solely on returns, wealth managers are now building strategies that integrate tax planning, estate considerations, long-term care needs and retirement income security.
“Clients—especially those nearing or in retirement—want clarity, simplicity and proactive guidance rather than transactional advice,” Zacher adds.
The key factor of stability in wealth management is being shaken by uncertainty, particularly about the Canadian economy.
According to the recent Retirement Report from Fidelity Investments Canada, stats and trends show that Canadians feel less certain about their retirement plans due to inflation and the rising cost of living. The findings highlight the importance of having a written financial plan and working with an advisor to achieve retirement goals.
Retirement readiness is a vital issue. The report found that many Canadians are postponing their retirement plans due to economic uncertainty, with a notable difference in optimism between retirees and pre-retirees.
Zacher notes that wealth management has always been, and continues to be, generational. Boomers and Gen X have seen their financial priorities shift in different ways. Boomers moved from peak earning years and growth-focused investing to today’s needs of income stability, capital preservation and planning for healthcare and longevity.
“They now want simplicity and dependable guidance. Gen X, meanwhile, went from raising families and managing mortgages to navigating peak financial pressure today, supporting aging parents, helping adult children and trying to catch up on retirement savings. They want efficient, tax-smart strategies and advice that balances current obligations with long-term security. Both groups expect more personalization and clarity than ever before.”
He points out that in Alberta, throughout the country and globally, economy jitters are impacting wealth management strategies.
“Across the board, uncertainty around inflation, interest rates, geopolitical tensions and market volatility is making individuals more cautious. Many are shifting from a ‘growth at all costs’ mindset to a more balanced, defensive approach focused on protecting what they have.
“In Alberta specifically, economic swings tied to energy markets, housing affordability and job stability continue to shape decisions. Even when the province is performing well, people remember past downturns and tend to build in more buffers—larger emergency savings, reduced debt and more diversified investments.”
The wealth management jury has always been out about the contentious topic of playing the stock market as a viable aspect of wealth management. The unpredictability, risk and the infamous volatility of the stock market are cautions about the impact of “stage in life” when dabbling in the stock market.
Age and stage in life strongly shape how people use the stock market and other wealth-management options. Younger investors can take on more equity risk because they have time to recover from downturns, so growth-focused portfolios make sense. As people move into their 50s and 60s, priorities shift toward protecting savings, reducing volatility and creating reliable income.
Armstrong points out that the “quest for yield” has been an investor staple for decades, driven by the universal desire for cash flow, “But the last five years have dramatically reshaped the landscape. Since the onset of the pandemic approximately five years ago, we have seen inflation and GIC rates move together, experiencing a significant, synchronized uptick that makes the search for true yield more complex than ever.
“For a moment, GIC returns climbed with interest rates and clients locked in some attractive terms during that period. However, those higher rates did not last. Those same clients who locked in a GIC at 4+ per cent will need to re-evaluate their options when they renew.”
Investors are increasingly seeking alternative sources of yield beyond traditional options like GICs. This shift is primarily driven by heightened tax awareness and the need to maximize after-tax, post-inflation cash flow.
Zacher emphasizes that while the stock market plays a central role in wealth management, its importance has evolved as investors focus more on managing risk than chasing returns.
“While equities remain a key driver of long-term growth, today’s volatility has made people more aware of the need for balance and discipline. Effective wealth management now means using the stock market strategically, diversifying across sectors, rebalancing regularly and pairing equities with more stable income or guaranteed products. Instead of reacting to short-term swings, investors are building portfolios that can weather uncertainty while still capturing long-term opportunity. The market is a tool, not the plan itself!”
He urges that, in today’s unpredictable economy, riding the stock market’s ups and downs requires discipline and perspective. Short-term volatility can feel unsettling, but markets have historically rewarded patience.
The key is staying invested with a plan that matches risk tolerance and a time horizon. Reacting emotionally to headlines or trying to time the market can lead to costly mistakes.
“Staying calm, staying invested and staying strategic is the most reliable way to navigate market waves.”
Stock markets are renowned as one of the greatest engines of wealth creation. Many advisors suggest that, to generate higher returns over the long-term, investors must consider a strategic allocation to equities. This reality stands in contrast to the outdated adage of setting bond weights equal to one’s age.
“That guideline was relevant during an era of significantly higher bond yields—days that are sadly behind us,” Armstrong explains. “Consequently, relying solely on bond coupons, which are the periodic interest payments made by the bond issuer to the bondholder, will lead to disappointment. While this trend suggests that many investors may need a greater equity allocation, specific portfolio needs must always be individually assessed.”
He also cautions that, while the stock market is arguably one of the best vehicles for achieving long-term financial goals, success hinges on having an honest assessment of personal risk tolerance.
“The wisest strategy is for prudent portfolio construction and diversification to remain critical tools to manage volatility, ensuring that market fluctuations can be withstood without making premature, panic-driven decisions.”
