Dan Noonan, one of Wealth Professional's 5-Star advisors, explains the elements of his practice's client-centric approach
Harbourfront Wealth Management upholds a philosophy of “independent, unbiased advice” in delivering services such as income planning and projecting, estate preservation, and risk management. One person who embodies that idea is Dan Noonan, SVP and investment advisor of The Wealthbuilding Group at Harbourfront Wealth Management, who recently spoke with Wealth Professional Canada about the driving forces behind the practice’s growth.
“I would say in one part, it’s adherence to a few basic principles over my last 35 years doing this,” said Noonan, who was recently named among WP’s list of 5-Star Advisors for 2021. “Part of itis a focus on increasing client knowledge. That’s a very important part.”
“But [another philosophy] that we go by is the magic of compounding. Time is the most important thing. [Investing or doing] something early is much more important than lots later on,” he said.
Another concept his firm believes in is the idea of reversion to the mean: most asset classes have a certain expected rate of return over a five- or 10-year period, and anything above or below that indicates performance that the investor is borrowing from or going to make up for in the future.
In addition to perseverance, he cited the ability to adapt to changes, such as in interest rates that affect investment decisions, as another element of success.
According to Noonan, Harbourfront’s services differ from those of banks – the company’s biggest competition – in terms of providing a comprehensive, tax-sensitive financial plan to clients. Another distinguishing factor is a pension-style asset allocation similar to the Canada Pension Plan, OMERS, or OPSEU.
He emphasized that most of The Wealthbuilding Group’s clients are not high-net-worth individuals, but more of a “Mr. Average” or “Mrs. Average” who experiences a family office environment when dealing with the practice.
Considering the cost of ownership of financial investment products, Noonan’s advice for potential clients is to look closely at the fees they are paying.
“What are they getting for that? In most situations, all people are getting is a particular investment. That’s it. And it’s an old school investment, and it’s usually comprised of public equity and the public bond market, which is government bonds, which these days have a yield of maybe 1.5%, 1.2%. Yet you’re paying 2% to own the product. So, the banks haven’t really changed in their investment philosophy.”
Noonan said the company charges a $50 fee for every tax return handled. The funds go to a charitable trust that has allowed Harbourfront to make substantial donations, including an over-$100,000 gift to the Joseph Brant Hospital in Ontario. The tax program therefore provides an added value by enabling Harbourfront’s clients to give back to their community.
