Do you have a financial planner/wealth advisor?

[sputnik]

The best bond fund out there is the PH&N Bond Fund.

MER @ 0.6%

$25K minimum initial investment

http://www.theglobeandmail.com/globe...mary/?id=18150

[dezmarez]

This a good article from Rob Carrick from The Globe and Mail that compares ETFs to Mutual Funds.

http://www.theglobeandmail.com/globe...ticle12004682/

[ExtraSlow]

I like how this got totally sidetracked into comparing ETF's and Mutual funds. I know some so-called "advisers" are really just mutual fund salesmen, but I feel like that's not the question the OP was asking.

[Sugarphreak]

...

[dezmarez]

Originally posted by ExtraSlow
I like how this got totally sidetracked into comparing ETF's and Mutual funds. I know some so-called "advisers" are really just mutual fund salesmen, but I feel like that's not the question the OP was asking.

Lol.
You are correct, I merely wanted to get an understanding of how many beyonders use some sort of wealth advisor, and why or why not.

None the less, still a very interesting thread to read.

[TheCheff]

Originally posted by Feruk
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.

Yeah that was a poor example and unfortunately what most uneducated investors are involved in as like you stated a lot of mutual funds are under performing. I also agree that the models like the Canadian couch potato do make it easier for people to invest and obtain great returns but there is still a very large segment of society that is either just to lazy/ignorant to follow it and would prefer someone to invest their hard earned money.

As a real example of a private(not a big bank fund) global equity fund I have been involved with for ~5 years; after MER deductions it has outperformed the 'Aggressive' Canadian couch potato model by 3.2% in 2014 and has out performed the annualized 3-year return by 3.5%(AFTER A LARGE MER). I haven't actually researched this but i would expect the large majority of global equity funds have out performed Canadian couch potato's model after MER deductions. YTD this fund is already >12%.

Sorry for getting off track with the mutual fund vs ETF topic. I believe both are strong investment vehicles and it is up to the investor to choose which product is best.(A large percentage of my portfolio is self directed but i like a mutual fund or ETF to save me from my own aggression )

Also too add to the topic, while currently i do not have a financial adviser/planner I believe a financial adviser is very important for people who are uneducated and are very poor with managing finances. As retirement is approaching people will need advice on tax implications for the most effective way of unlocking their rrsps, estate planning, investment direction etc..

Even myself i plan to seek advice at retirement as tax implications will become quite complicated and I want to ensure I am maximizing efficiency.

[ExtraSlow]

There's an interesting option for people who want a "set-and-forget" type of investing scenario, without dealing with the traditional advisors/salespeople and the high MER's.

Companies such as WealthSimple do automatic rebalancing of a portfolio of ETF's based on a relatively simple startup questionaire.
we've got a thread discussing that here:
http://forums.beyond.ca/st/388225/ro...pros-and-cons/ .

Although maybe the discussion fits here as well. Not sure.

[suntan]

Originally posted by TheCheff



As a real example of a private(not a big bank fund) global equity fund I have been involved with for ~5 years; after MER deductions it has outperformed the 'Aggressive' Canadian couch potato model by 3.2% in 2014 and has out performed the annualized 3-year return by 3.5%(AFTER A LARGE MER). I haven't actually researched this but i would expect the large majority of global equity funds have out performed Canadian couch potato's model after MER deductions. YTD this fund is already >12%.

Zzz... Check MAW104 versus XIU. No need to buy high MER funds...

[Feruk]

Originally posted by TheCheff
As a real example of a private(not a big bank fund) global equity fund I have been involved with for ~5 years; after MER deductions it has outperformed the 'Aggressive' Canadian couch potato model by 3.2% in 2014 and has out performed the annualized 3-year return by 3.5%(AFTER A LARGE MER). I haven't actually researched this but i would expect the large majority of global equity funds have out performed Canadian couch potato's model after MER deductions. YTD this fund is already >12%.

What fund? Has it outperformed over the last decade? As mentioned before, from what I have read, ~95% of mutual funds underperform. There are a few that have beat the market I'm sure, but for every one, there is 19 other losers, and prior performance does not dictate future returns.