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Thread: Do you have a financial planner/wealth advisor?

  1. #41
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    Originally posted by cjblair
    It's important to distinguish what tier of FA we're talking about. The ones you'll find in your local branch where you have your savings account aren't exactly part of the all star lineup. However, if you go to a private investment firm, (i.e. one where you have to give them a minimum amount of money to play with, usually well into the 6 figure range) your experience will be much different.

    Having said all that, I 100% agree that no one cares more about my money than I do.
    Agreed. Our old portfolio with Nesbitt required a minimum amount that was in the 6 figure range. Our experiences with them were much more professional than the local branches we dealt with when we were first starting out. However, i agree with others that pulling out and managing our own was a good decision that we have yet to regret.

    It also helps that hubby has some investment banking background. I'll be the first to admit that i wouldn't feel as comfortable having to rely on my good judgment for such things.
    Last edited by carzcraz; 04-10-2015 at 05:15 PM.

  2. #42
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    I'll chime in because I am a financial planner that works in a big 5 bank.

    With any profession (FP, accountant, lawyer, dentist etc) you are bound to have some bad apples. Those of you saying nobody cares about your money more than you, well don't you care about your car more than the mechanic, but still take your car there? The same can be said for other professions.

    I am there to help people who don't know about investing and also how to assist them with reaching long-term financial goals. I can help with their budget, what type of investment is best (ie. RSP, TFSA, Spousal RSP etc). How to maximize returns while reducing risk. I get paid by the bank, so it doesn't matter to me what investment you go into. In my experience, there a lot of people that have no idea how to invest and I want to make sure the money they have worked hard to earn, will help them pay for their retirement and other goals. I do care about my clients and I want them to succeed. It isn't about the money that I make, but rather that I am helping people to be financially better off.

    If you are able to do your own investing and don't need my services, that's great. If your money is doing well that is all that I care about for my clients. But if you let me help you manage your money, you can bet that I am going to advice you what is in your best interest and not mine. Maybe not everyone is like me, but I like to think that most people in my position are just there to help those that don't know what they are doing and need some guidance.
    Originally posted by xLostx
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  3. #43
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    Originally posted by krazykhoja
    But if you let me help you manage your money, you can bet that I am going to advice you what is in your best interest and not mine. Maybe not everyone is like me, but I like to think that most people in my position are just there to help those that don't know what they are doing and need some guidance.
    If you've ever sold anyone any mutual funds I'm going to say you are full of shit no offense... Banks are just about the last place I would ever go for financial advice. The banks are concerned with pushing products and padding their bottom ends.

    Canadian mutual funds have some of the highest fees world wide... So how anyone can in good faith recommend mutual funds is beyond me.

    Aworldwide study by Chicago-based investment research firm Morningstar Inc. gives Canada's mutual fund industry a failing grade for its high fees.

    The study of the global fund investor experience in 16 countries found Canada placed last for its high management expense ratios, earning it a failing grade of F.

    The study, by three Morningstar research analysts, gives Canada an A on transparency and investor protection. But Canada's overall ranking was seventh, giving it a B minus. The only country to get an overall A grade was the United States. At the bottom were New Zealand, with a D minus, and Spain at D.

    The composite scoring system has six components, says Morningstar Canada managing editor Rudy Luukko: also addressed were sales practices and media coverage, taxation and distribution.

    Ironically, Morningstar views Canadian prospectuses as being "among the world's most comprehensive in their disclosure of the costs of investing." Canada is among the minority of countries whose regulators require a prospectus to include a numerical example of the total costs of funds, Mr. Luukko said.

    In other words, while our MERs may be sky high -- as famously disclosed in an earlier worldwide study by Harvard's Peter Tufano et al -- at least our fund companies are required to disclose it.

    Never mind the fact that most investors ignore prospectuses, viewing them as unreadable legalese. "It's unfortunate most investors don't pay attention to fees and expenses because they're one of the few things you can control," said Mike Bayer, a Mississauga-based financial advisor with Raymond James.

    "The majority of investors would be better off with low-fee exchange-traded funds and enhanced index funds."

    Mr. Bayer, who started his investment career selling mutual funds, says he finds the Morningstar results "kind of depressing. Unfortunately, Canadian investors are not demanding lower fees, so they're not getting them."

    One reason Canada's fees are so high is the embedded compensation system for the advisors who sell mutual funds. Typically, they receive an annual "trailer fee" of 0.5% to 1% for each year they keep a client invested in a particular fund. Mr. Luukko says the study recognizes Canadian MERs include trailers, which are "fairly specific to the Canadian market."

    In a damning indictment of the integrity of advice under the Canadian distribution system, Morningstar concluded some advisors direct clients to funds that pay out higher trailer fees; a practice Canada's vocal investor advocate community has long complained about. Because the cost of the trailer is embedded in the MER, the funds Canadians end up purchasing tend to be the higher-cost funds, and in the long run higher costs mean lower investment returns.


    Even so, Canada got a Bplus on distribution and choice, placing it second in that category. Canada also got an A for transparency in sales practices and media.

    The Investment Funds Institute of Canada says our higher MERs occur because of taxes that do not apply in the United States.

    Dennis Yanchus, IFIC manager of statistics and research, says there are also cross-country differences in the fees included in a MER. In some countries, trailers and legal costs are charged outside MERs. In other countries, fund companies are only required to post the fund-of-fund fee for the top fund but in Canada, fund-of-fund MERs must also include all fees charged to underlying funds.

    Countries also differ in the holding period of the average investor and tax treatment varies by country, Mr. Yanchus said.
    So yeah I get why advisers push mutual funds
    Last edited by mazdavirgin; 04-12-2015 at 12:10 AM.

  4. #44
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    I voted yes.

    Years ago at an old place of employment, the company had set up a new RRSP program and picked this FA from Red Deer to oversee it. He invested it in something that has done really well over the years so I can't complain.

    Last night, while reading through the list of Wildrose candidates, I discover that he's running as the WR candidate for Red Deer - South.

    I think he'd do really well in that role.
    Looking around
    Wondering what became
    Of what I once knew

  5. #45
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    Originally posted by mazdavirgin


    If you've ever sold anyone any mutual funds I'm going to say you are full of shit no offense... Banks are just about the last place I would ever go for financial advice. The banks are concerned with pushing products and padding their bottom ends.

    Canadian mutual funds have some of the highest fees world wide... So how anyone can in good faith recommend mutual funds is beyond me.



    So yeah I get why advisers push mutual funds
    I don’t think you have a full understanding of mutual funds if your general assumption of an advisor who sells mutual funds isn’t thinking of the client first.
    Not all mutual funds have a trailing commission associated with them, (look up F series funds) and not all advisors are compensated from a trailing commission.
    I’d be interested to know how you would like to see a financial advisor compensated. (or anyone else in the thread)
    Would you want them to have a base salary, with no incentive either way?
    Would you want a fee based advisor, who charges a certain fee annually based on your assets you have invested with them?
    Would you want an advisor who is compensated from trailing commissions imbedded in the MER?
    Reading through the thread it is interesting to see that most people feel that the advisors are only there to advise from an investment strategies point of view however most accredited advisors do much more than just the investment strategies. They do retirement planning, tax management planning, estate planning, business succession planning etc.
    It is true that, some people don’t need the advice whatsoever, however, for a lot of people they could use at least some form of advice when it comes to wealth management as a whole, and just like any other advice business, it usually isn't provided for free.
    Also, I wouldn't consider your local bank branch financial advisor a “wealth advisor”, they are great for helping start the process of introducing RSP, TFSA etc. but they usually aren’t qualified to provide an enhanced level of advice. There are usually minimum amounts that you would have to invest to be passed on to the next level.
    These opinions are entirely my own and do not represent any other person or organization.

  6. #46
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    Originally posted by krazykhoja
    With any profession (FP, accountant, lawyer, dentist etc) you are bound to have some bad apples. Those of you saying nobody cares about your money more than you, well don't you care about your car more than the mechanic, but still take your car there? The same can be said for other professions.
    I don't agree with the mechanic analogy at all. People go to a mechanic because of how complex cars are today, and because most people don't have the required equipment to conduct repairs just lying around. People's investments have historically seemed very complex, but only because the financial world made it that way, therefore justifying their existence. I think with ETFs today, more and more people are realizing just how simple investing can be, and that the middleman is less and less required. Cars have gone the other way.

    Originally posted by mazdavirgin
    If you've ever sold anyone any mutual funds I'm going to say you are full of shit no offense...
    100% agreed. I read a stat that something like 96% of mutual funds underperformed their benchmark in two consecutive 5 year periods. So if you are a financial adviser and you are recommending mutual funds, it is because you are either lazy, not knowledgeable, or don't care if you intentionally deceive the client.

    Originally posted by dezmarez
    however most accredited advisors do much more than just the investment strategies. They do retirement planning, tax management planning, estate planning, business succession planning etc.
    That's an excellent point as well.
    Last edited by Feruk; 04-12-2015 at 03:04 PM.

  7. #47
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    Originally posted by mazdavirgin


    If you've ever sold anyone any mutual funds I'm going to say you are full of shit no offense... Banks are just about the last place I would ever go for financial advice. The banks are concerned with pushing products and padding their bottom ends.

    Canadian mutual funds have some of the highest fees world wide... So how anyone can in good faith recommend mutual funds is beyond me.



    So yeah I get why advisers push mutual funds

    Just because I sell a mutual fund doesn't make me full of shit. Yes there are fees associated with them, but there are clients that need the help with budgeting, investing their money and making sure they stick to their plan. If a client doesn't have the knowledge to invest themselves, then they are prone to losing their money. My whole job is not to just take the client's money and put it into a mutual fund, but to help them with their overall financial strategy. You would be surprised how many people don't know how to budget, are maxed out on their HELOC's, credit cards etc. They are poor money managers and investing by themselves will only get into worse trouble.

    I know everyone here is a beyond baller that does their own investing making 50% returns a year, 7 figure bank accounts, 3 houses & 7 cars. But that isn't the norm.

    Not everyone will need a planner like me, but there are client's that do. You might think I am just there to sell some expensive product that people don't need and just padding the banks bottom line. But clients do need our help and guidance to make smart financial decisions.

    As an aside, if you think my job is useless, does your portfolio contain any bank stocks? If it does, you need the bank to do well, we are a business and yes the bank is there to make money. BUT like any business we are also there to help our clients. I know I am there to help my client's out, I know that the products I recommend will help them get to their retirement goal and other goals, and I am there to make sure they make good financial decisions.


    Edit: My compensation isn't based on what product I sell. The bank pays me a salary, and whether a client buys a mutual fund, a GIC, or if I help them setup a self-directed investment account, it doesn't matter to me. I will do for the client what is in their best interest, not mine.
    Originally posted by xLostx
    I like getting random texts, some guy kept texting me calling me his girl and baby, i told him that i have aids and he should get tested. he no longer texts me
    Originally posted by dimi


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  8. #48
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    Oh boy the koolaid is strong.

    Care to explain how anyone would be ahead of the game through buying mutual funds when the fees are higher than ETF's and they perform worse than ETF's?



    Financial planners are the realtors of the banking business.

  9. #49
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    Originally posted by mazdavirgin
    Oh boy the koolaid is strong.

    Care to explain how anyone would be ahead of the game through buying mutual funds when the fees are higher than ETF's and they perform worse than ETF's?



    Financial planners are the realtors of the banking business.
    What perecentage of people do you think would say that based on their current financial plan, they are confident they are going to meet their financial goals?
    Whatever those goals may be.
    Maybe it's retiring when they want to, with the lifestyle they want or knowing they will have enough to pay for their kids education or knowing exactly what their exit strategy is of their small business.
    (say from a scale of 1-10, what percentage are in the 9 and 10 range?)


    Maybe someone has recently been laid off, and they get this huge package of paper from their employer. They have 8 options they can select in regards to the pension they had with their employer. There are options to take the full value out lump sum, there are options to take the monthly benefit, with a guarantee, without a guarantee, with full survivor beneifts, with partial survivor benefits.
    How confident do you think the majority of people are making those decisions on their own?

    If you can't see where a wealth advisor could add value (or come out ahead of the game) to those people, I am happy for you. That means you have the confidence you are going to meet your financial goals.

    But, there are a lot of people out there who aren't confident, and who don't know what they're doing.

    You could even have a fee-based wealth advisor that uses ETF's as an investment solution!
    These opinions are entirely my own and do not represent any other person or organization.

  10. #50
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    Other than Mawer everything else stinks.

    ETFs are good except that many people forget about fees for buying/selling.

  11. #51
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    .
    Last edited by codetrap; 01-01-2017 at 02:44 PM.

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  12. #52
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    Let's say you are an inexpierienced investor and a particular mutual fund from your bank has a MER of 1.45%. The last 2 years it has returned 8.7% and 9.6%. Your dividends are consistently reinvested and the mutual fund has billions in market share diversified through ~400 companies(top 25 holdings =25%) and is constantly being rebalanced by a REAL professional. From that perspective I would say that's a decent idea for an inexpierienced investor(>70% of the population I would guesstimate). This is extremely beneficial to someone like my parents who are terrible with finances.

    Personally I self direct invest ~80% of my investment assets(US and CDN equities and fixed-income) and while the rest is parked in a few mutual funds I invested in when I was ~22 and unsure of investing. These funds performed fairly well over the years as well.

    While I realize the benefits of low fee ETF"s not everyone knows how to rebalance their holdings annually and has no desire to learn. I personally believe as ETF popularity rises the fees will begin in to increase substantially, Mutual funds have their place.

    I am curious to know what kind of returns these beyond investors make. By the sounds of this thread we have the next einhorn or ackman amongst us.

    Disclaimer: No I don't work for a bank and I am not a financial advisor/planner LOL
    Last edited by TheCheff; 04-14-2015 at 12:08 AM.

  13. #53
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    I have an FA with sunlife, I think hes pretty good, I mainly use him for my kids RESP, and I have about 2k in rrsp and tfsa with him. All my RRSP/Pension stuff is handled through work otherwise but my kids RESP is up 20% y/o/y.

    I think he only makes money through selling insurance though. I get the statements from the mutual funds and there are no fees associated with them. He also doesn't use sun life mutual funds for some odd reason.
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    Could have been over 60% if I wasn’t a paper hand bitch

  14. #54
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    TheCheff, you should look at the Canadian Couch Potato "model portfolio" performance to get a sense of ETF returns:
    http://canadiancouchpotato.com/wp-co...s-Vanguard.pdf

    Even the SUPER conservative one with 70% bonds beat the return of the mutual fund you mentioned last year... and only charged 0.16% vs 1.45%! This "real professional" that manages this mutual fund got outperformed by an ETF made up of 70% low-yield bonds, but charged the investor 9X more for his "professional services." He's just one of the 95%+ that can't beat ETFs. I would come far short of calling him a professional. What's worse is it probably takes a few hours to learn all this material, so the complexity that once existed is gone.

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    .
    Last edited by codetrap; 01-01-2017 at 11:24 AM.

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  16. #56
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    Originally posted by nzwasp
    I think he only makes money through selling insurance though. I get the statements from the mutual funds and there are no fees associated with them. He also doesn't use sun life mutual funds for some odd reason.
    This is athe greatest thing about selling mutual funds, the fees that he's paid are hidden from you. You are happy because you feel like you aren't paying him.
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  17. #57
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    Ask him to buy Mawer for you and see if he lets you (no trailer fees).

  18. #58
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    He seems to exclusively go with ci.com
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    Could have been over 60% if I wasn’t a paper hand bitch

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    Sweet fuckface those MERs.

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    Originally posted by suntan
    Sweet fuckface those MERs.
    Yeah a fair bit of those are at 2.5% Talk about getting shafted...

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