Unfortunately institutional advisors seem to be no more than glorified salesperson. They have long been pushed into selling whichever products their management tells them. Not too often they get to know you and really listen to your plans, ideas or suggestions and what goal you're trying to achieve. In there defense they somewhat have to tow the line and some can be limited to product availabity.
@@thanks4that261 Are those actual planners or MF sales people who take a percentage? My guess is the latter. I would be very suprised if RBC is not taking a % of AUM to pay these "planners" who don't do any actual planning.
I was in the 34% and he never contacted me, even when I reached out to him. I moved low six figures to Questrade and Wealthsimple. I could not stand the fees I was paying for no service. When I added that up over the next 10 years I just could not justify that.
Covid gave me time to review my investments managed by a big bank Advisor. The relationship changed when I started asking questions. Left him and went DYI. Life changing. We are late 50’s and I did higher returns on our first year than the financial advisor ever did.
If you are retired and withdrawing a typical 4% a year then a 1% fee on the capital is 25% of your annual withdrawal - equivalent to an extra 25% income tax.
I expect I'm like many who enjoy and learn from your channel, Adam: a DIY investor who draws on the expertise of authors, financial journalists and UA-cam sources like yours to educate themselves. It's a hybrid approach--when I have a particular question I need to answer, a recent one being how to manage a relative's new RRIF, I go to those expert sources. I think the prejudice as to professional advice really begins with that bad old history in financial Canada: some of the highest MERs on mutual funds when those were the main option for the average investor; the late arrival of index funds and ETFs, as well as the obfuscating complexity of financial products in general; the bank-centered nature of our personal finance culture, with its legions of salespeople at branches offering advice and encouraging clients to use the in-house investment products; the fact, as you say, that anyone can identify themselves as an "advisor" or "planner" and the weakness of the fiduciary principle as a result; and behind all that, the scandal of our poorly regulated fiscal environment, lacking as we do a national securities regulator like the U.S. SEC, which gives the personal finance industry a lot of room to self-regulate, and therefore creates disincentives for real reform. John Lawrence Reynolds' 2007 book, The Naked Investor, outlined the major shortcomings in the financial advice industry in Canada long ago, and I expect his book remains accurate in many respects. One of the great things your channel does is to show who fee-based advisors are, and in view of your excellent content, what they offer. While your channel helps your business in that regard, and that's fine in itself, it also elevates fee-only advice and advisors generally as something that DIY as well as more typical investors can use with confidence.
I was invited to my bank to see their financial advisor. We discussed my situation and he simply printed a portfolio fund with an MER of 2.8% and said I recommend this. I said ok and left. I find the banks just push their own expensive funds.
Thank you for the honest feedback. It is good to see the explanation of the largest % responses broken down with your detailed feedback on each. From my own personal anecdotal experience, I've had an old high school friend who is a CFP manage money for other friends, and they quickly pulled out because of the poor experience, and he was putting their money into high managed fee funds from his bank. When we looked back at it, everyone would have done significantly better if they just dropped their money into S&P/TSX index funds and called it a day, and saved on paying out the mgmt fees to boot.
We are a retired couple in our 60s with no debt, no major expenses and plenty of savings in taxable retirement funds. Say we need $100k to purchase a house beyond the cash from the sale of our old house. One option would be to take out a $100k mortgage and keep our income in the 12% federal income tax bracket. Paying as much towards principal as we can each year. The other option would be to take $100k from retirement funds, so no debt, but our 2023 federal income tax bracket would likely rise to 24%. What type of professional would be best to advice us? Certified Financial Planner™ (CFP) · Chartered Financial Analyst (CFA) · Personal Financial Specialist (PFS) ·Enrolled Agent (EA) · Certified Public Accountant (CPA)? Thanks.
Adam, would you consider doing a video to explain the FUND FACTS sheet about mutual funds. I try to understand the sheet but it's just a lot of confusion. I'm sure others find FUND FACTS hard to understand as well. Overall, if you yourself were thinking about buying a certain mutual fund what would appeal (or not appeal) to you on the FUND FACTS sheet about that particular mutual fund. Front load, no loads, etc. What is a benchmark? What is YTD, etc., and how does the buyer know if the fund is doing well or not over the long term? How do you compare it to others? Thank you for your consideration, Adam. Even if you could explain the basics, please.
@@ParallelWealth Thanks a million bucks, Adam. I am absolutely thrilled with the news that you've recorded it. You are a fine man and I very much appreciate your kindness. I've asked so many people about mutual funds and, well, really few people knew even a little about them even the ones that own them. I must subscribe to your second channel in this instance. You've made this Nova Scotian a very happy man this Friday night. Cheers, Adam!
If financial planners were so knowledgeable about the stock market and income investing, they would already be millionaires so there would be no reason for them to be working at a job selling products for the banks or mutual funds. The facts are that most of them know about as little as the rest of the public.
My wife has an MBA and used to be a CPA. She found an excellent Financial Services Representative at Edward Jones 40 years ago and has worked part and full time for Edward Jones for many years. I know nothing about investing and don't have to because my wife and our Financial Services Representative have turned our average incomes into a $5Million nest egg. And FYI our Financial Services Representative is also a millionaire, which means that a part of his $Millions came from our pockets.
An interesting and very original topic for a video by a Financial Advisor/Planner! I do my own investing and planning, having built a rather complex spreadsheet projection tool. However, despite the many hours I put in on building this thing, I still wonder if I'm missing something. I don't think I am, or am I?
Hard to say, but we do a lot of plans for ppl that do very good DIY planning with spreadsheets. That will typically get you 80% there....lots of tax planning typically missed. It's figuring out how all the accounts work together for tax efficiency at drawdown where most plans lack
Only Fee Only. For most investors at any age or phase of life, an advisor that's not a "fee only" should be disregarded. Investors should not be fooled into thinking their portfolio should be charged as a percentage of total assets just because it's $1M instead of $100k.
AdvisOr or AdvisEr. Two very different terms that sound the same. The former with an O is a sales representative without fiduciary responsibility. Caveat Emptor - and sleazy misrepresentation. Beware, these people often work at banks and similar institutions and are not allowed to give independent advice that may not benefit their employer. The latter with an E does have fiduciary responsibility. They can give independent advice and advise products not sold by their employer!
I wasted 10 years of time and money with an "advisor" at Edward Jones! So glad I pulled the plug and moved my account out of there. They didn't even contact me to ask why I bailed!!
My wife has worked for Edward Jones as an administrative assistant for many years, and believe me there are some doozies out there. But there are also some excellent Edward Jones Financial Services Representatives, and we have had one of the best for 40 years. "Advising" is only a small part of what our Edward Jones Financial Services Representative and his staff do. "Watching out for us" is more of what they do. Investments and potential investments are dynamic entities that fluctuate all over the place, and our representatives are on the phone with us up to several times a month with advice and recommendations regarding our investments. Do they do all that for free? Of course not, and we don't mind paying them for a job well done.
If someone is a really good FA why are they working as a FA? They should all be wealthy and retired. (I know there are reasons: want to help others, too young to retire, got bored, etc.) Jokes aside, how about just use Buffett's advice: start when you're young and invest in say S&P 500 for the long term using very low fee mutual fund, let it compound and grow and retire a multi-millionaire. One flaw is the school systems do not teach even basic personal finance + marketing brain washes us to spend, not save. So most do not start when young. Scratch that one (Buffett plan). The one thing I would suggest is to ask to see financial records of prospective FA. What is FA invested in now. What is FA's personal track record? If FA refuses, move on.
Unfortunately financial advisor is one of those nebulous terms that don’t actually tell you anything. Just like counsellor or therapist or life coach. Any know it all can hang out a shingle and call themselves something but have no deep training, degree, or certification in the particular field.
Which of the two is better or the more superior - The Financial Planner or The Investment Manager and which of the two would best assist anyone in creating/ acquiring more wealth over time - The Financial Planner or The Investment Manager
If you need help with your investments, then the investment manager. If it's planning, tax, estate strategy - then the planner. It's like comparing a dentist to a doctor - different jobs, but both can help with your overall health
@@ParallelWealth - What's your opinion on a portfolio strategy composed of a Total Market Index Fund - basically composed of like 3 funds - Total US Stock Market Index (VTSAX) and Total International Stock Market Index (VTIAX) and Total US Bond Market Index (VBTLX)
Question. With my Financial Advisor and inveesting in the stock market RRSP's I recently pulled my money out of the RRSP's stock market and invested in GIC's. I apparently am receiving 4.2% iinterest and I"m happy with this. Question am I still paying the advisor who set the whole thing up for me. I assume she is making money somehow from these funds?
@@tomatoseed1443 there was no tax payment for the gov't. I didn't pull it out essentially, I just moved it from one area to another. It's still locked in RRSP only guaranteed investment certificate instead of mutual funds. It's the same thing only different. It's still a RRSP So a lot of the same rules apply.
Why don't you ask her? Our Financial Services Representative and his assistants have set up hundreds of investments for us over the past 40 years, and they contact us several times a month regarding them. Do I think that he makes some money off of our investments? Of course. Otherwise how could he afford to lease a building, pay salaries, and acquire sufficient supplies and support services?
How do I find a financial advisor and planner that can guide me in the right direction. I'd rather handle my savings on my own. I went to an accountant to do my taxes and felt like I knew more about calculating average stock price than they did.
Hi Adam! This video came at the perfect time! I’ve been a DIY investor for almost 5 years and have invested primarily in S&P 500 ETFs. I have a meeting in the coming weeks with a gentleman that is both a CFP & CFA and depending on how it goes I might have my money managed by him instead. As I’m looking for both planning and investing advice, what would be a good MER for this CFP/CFA combo? Thx!
I think young people who are starting out will try a financial advisor/ planner because they don't have a clue about investing and have little money to lose. As time goes on you learn things with some research and common sense and eventually try a Discount broker. I feel the Best Investing is with a Discount broker but "only" if you have had Experience in the markets for years and have learned a basic understanding about the markets. Sadly, statistics show that most people are clueless about investing. It seems that more Intelligent people are doing the right things and Prospering ... !
There is no way of knowing good advice from bad. Stay away from people who claim they can predict future results. If you have any debts you should pay them off first. Then save and try to invest half of you have left over.
My bank advisor brought in a financial advisor from their brokerage company..he told me outright he gives my money to another group who distributes the money into different funds...and i pay him 1.5 % commission... I am thinking to myself...I can so the same thing myself...Yes...I am not the typical deer in the head lights bank customer. I want to know the value you are bringing me...don't expect something for nothing..I pay you..I want results. I want constructive input..not just how..you can sell me another product or advisors services. One needs to be aware of how much they are paying for advise..and if your historic returns warrant..what is being paid...are you making or losing money each year...if you're losing ..you need to find someone new...pronto.
I grew up loathing the so-called financial advisors- all of them just trying to shove down my throat their high fee Mutual funds. Started to educate myself- also thanks to people like you- and been doing much better financially now. So thanks!!!
After working with several advisers and CFPs, I’m convinced that they do not know any more than I do. Having said that, I do hold an MBA so wouldn’t recommend this for everyone
Wow ...second comment here and I am one of the 44% number since 1997 and my cfa designated son helps me while I am melting down my RRIF. Great video as always.
One word you don't hear enough is 'fiduciary' - someone that is legally obligated to put your interests first. I'm curious why more 'advise-only' advisers don't push for this more. It seems to be a natural fit as they don't benefit from selling anything. Just a quick note, I think I was actually part of this survey. Hard to say as they didn't announce who they were, but it looks familiar.
Be very skeptical of that big company that pushes that "fiduciary" word in their advertising. Very good at selling on that lingo but charge a lot of $$ for a substandard product.
My reason for being leery of financial advisors and planners is our experiences in 2008. We were with the Investors Group and didn't have a clue about the stuff we didn't know that we didn't know. That puts the client in a position where they can be taken complete advantage of because they don't even know how they are being used. I would suggest that anyone who is considering hiring someone to look at and advise them on their hard-earned money, that they first commit to some basic investigation on terms, fees, options, etc. Fortunately, we stumbled onto Moneysense magazine (I know it's no longer a magazine but it is online. We haven't used it for awhile so don't know if they have maintained their standard of solid information). I also swallowed my pride and called an uncle who was known in the family as "being smart about money." I decided before I spoke to him that there would be no dumb questions and so I asked him anything and everything I could think of. He was so helpful. I would check in with him every so often as we started the process of transferring all of our money out of the Investors Group (a horror story on its own). We now do all our own planning with the assistance of a fee-based planner out of Edmonton who checks our plans every 4 years or so. We use the DIY feature on TD Direct Investing to buy and sell ETFs and rebalance once/twice a year. At 67 and 73 we also backfill with GICs and have a few stocks we play around with. We have registered and non-registered accounts as well as an emergency fund. We do get very frustrated with the lack of connection between the TD Direct Investing online format and the local TDWaterhouse branches (all of the paperwork you have to do for the online TDW platform has to be shuffled through a local branch and the branch's lack of knowledge about financial terms and processes is shocking). I regularly scan the internet for reliable information from people like you Adam, and watch Money Talk on TV and online to keep track of bigger trends. I agree with you that unprofessional conduct from financial planners and advisors is responsible for the reputations that many of them have, however there are some good ones out there. And it is our job to first know our own goals and plans, spending habits and risk profile before we start looking for the professional planners to help us make the most of our money.
I've been managing my own for 30 years. I beat the average return you describe (by a couple of percent). But, really, that would make it closer to 3 or 4 percent if you factor in not paying an advisor. Recently, I bought an hour of my accountant's time to talk about taxes in general and things to think about as I retire. It was the best return on investment all year. He wasn't telling me what to do, just what he had done for himself and what he might do in my position. I find your videos fascinating. You answer a lot of questions I have wondered about, but haven't had time to sit down and figure out myself. Thanks! After all that, my only advice to others is to never, ever use a bank as a source of financial planning. Banks are like Casinos. You have to ask yourself who paid for the impressive building and all that advertising.
I don't use an advisor. I picked 10 stocks in different industries in Canada. Bought one share of each and asked my broker for the share certificates for those shares. He told me that would be $50 + HST. Perfect. Now for the last ten years I have been putting money into these long positions every quarter. The whole amount goes to the companies, cause there is no transaction costs. My 10 positions cost me $660 dollars including the very first transaction. Never paid a cent more. Another 5-7 years I'll be retiring and living off those dividends that these 10 positions payout. One of the best decision I have made. Read "The Lazy Investor" Canadian author. Explains how to use the companies broker to buy shares. Great read. Enjoy.
Lots of good reasons not to have an advisor so I don't understand why you keep going back to saying to get one. I do my own now. I would have been better off if I had started sooner. Planner - yes, good value. Advisor - okay if you don't know what you are doing.
Here's The Facts: What Is the Average Cost of a Financial Advisor? In 2021, the average annual fee for a financial advisor’s services was 1.02% of assets under management (AUM) annually for an account of $1 million, according to research done by Advisory HQ News Corp. A 2019 RIA in a Box study of more than 1,350 registered investment advisor firms put the total industry average annual advisory fee at 1.17%, decreasing depending on the size of your account. However, high-net-worth individuals may pay less, because the fee structure works on a sliding scale. “A reasonable fee would be 1% at $1 million down to 0.50% at $10 million and 0.10% thereafter,” says Ryan O’Donnell, CFP, wealth manager, and founding partner of the O’Donnell Group in Chico, Calif. In other words, clients should expect to pay a maximum of $50,000 on a $10 million account. Online advisors have shown that a reasonable fee for money management only is about 0.25% to 0.30% of assets, so if you don’t want advice on anything else, that’s a reasonable fee, says O’Donnell.
Unfortunately institutional advisors seem to be no more than glorified salesperson. They have long been pushed into selling whichever products their management tells them. Not too often they get to know you and really listen to your plans, ideas or suggestions and what goal you're trying to achieve. In there defense they somewhat have to tow the line and some can be limited to product availabity.
The "planner" at my bank is a CFP yet there was absolutely no planning to be found for the 2.89 percent I was paying each year. So glad I moved.
2.89% that’s outrageous it should be 1%
What bank? Planners at RBC are free, they are provided at nost cost if you have over $250,000 invested at RBC
@@thanks4that261 Are those actual planners or MF sales people who take a percentage? My guess is the latter. I would be very suprised if RBC is not taking a % of AUM to pay these "planners" who don't do any actual planning.
I have met young financial advisors who have not even seen actual money.
Very true . High turnover rate , little trainning
UA-cam and the internet is my advisor. I read a lot, try to learn and see how things work.
I was in the 34% and he never contacted me, even when I reached out to him. I moved low six figures to Questrade and Wealthsimple. I could not stand the fees I was paying for no service. When I added that up over the next 10 years I just could not justify that.
Covid gave me time to review my investments managed by a big bank Advisor. The relationship changed when I started asking questions. Left him and went DYI. Life changing. We are late 50’s and I did higher returns on our first year than the financial advisor ever did.
If you are retired and withdrawing a typical 4% a year then a 1% fee on the capital is 25% of your annual withdrawal - equivalent to an extra 25% income tax.
And you are completely forgetting about the value of the advisor....lol. just saying!
Great video Adam, and it came a the best time ever. Thanks.
I expect I'm like many who enjoy and learn from your channel, Adam: a DIY investor who draws on the expertise of authors, financial journalists and UA-cam sources like yours to educate themselves. It's a hybrid approach--when I have a particular question I need to answer, a recent one being how to manage a relative's new RRIF, I go to those expert sources.
I think the prejudice as to professional advice really begins with that bad old history in financial Canada: some of the highest MERs on mutual funds when those were the main option for the average investor; the late arrival of index funds and ETFs, as well as the obfuscating complexity of financial products in general; the bank-centered nature of our personal finance culture, with its legions of salespeople at branches offering advice and encouraging clients to use the in-house investment products; the fact, as you say, that anyone can identify themselves as an "advisor" or "planner" and the weakness of the fiduciary principle as a result; and behind all that, the scandal of our poorly regulated fiscal environment, lacking as we do a national securities regulator like the U.S. SEC, which gives the personal finance industry a lot of room to self-regulate, and therefore creates disincentives for real reform. John Lawrence Reynolds' 2007 book, The Naked Investor, outlined the major shortcomings in the financial advice industry in Canada long ago, and I expect his book remains accurate in many respects.
One of the great things your channel does is to show who fee-based advisors are, and in view of your excellent content, what they offer. While your channel helps your business in that regard, and that's fine in itself, it also elevates fee-only advice and advisors generally as something that DIY as well as more typical investors can use with confidence.
Thanks David.
On the plus side our banks are stronger and better regulated than the gong show south of the border.
I was invited to my bank to see their financial advisor. We discussed my situation and he simply printed a portfolio fund with an MER of 2.8% and said I recommend this. I said ok and left.
I find the banks just push their own expensive funds.
Thank you for the honest feedback. It is good to see the explanation of the largest % responses broken down with your detailed feedback on each. From my own personal anecdotal experience, I've had an old high school friend who is a CFP manage money for other friends, and they quickly pulled out because of the poor experience, and he was putting their money into high managed fee funds from his bank. When we looked back at it, everyone would have done significantly better if they just dropped their money into S&P/TSX index funds and called it a day, and saved on paying out the mgmt fees to boot.
A skilled financial advisor is an investor's best asset. Problem is - how do you know if they're skilled or not?
We are a retired couple in our 60s with no debt, no major expenses and plenty of savings in taxable retirement funds.
Say we need $100k to purchase a house beyond the cash from the sale of our old house.
One option would be to take out a $100k mortgage and keep our income in the 12% federal income tax bracket.
Paying as much towards principal as we can each year.
The other option would be to take $100k from retirement funds, so no debt,
but our 2023 federal income tax bracket would likely rise to 24%.
What type of professional would be best to advice us? Certified Financial Planner™ (CFP) · Chartered Financial Analyst (CFA) · Personal Financial Specialist (PFS) ·Enrolled Agent (EA) · Certified Public Accountant (CPA)? Thanks.
agreed.. but most people have no idea what they are buying or it's FOMO.
So impressive. Thank you Adam.
Glad you enjoyed it!
Adam, would you consider doing a video to explain the FUND FACTS sheet about mutual funds. I try to understand the sheet but it's just a lot of confusion. I'm sure others find FUND FACTS hard to understand as well. Overall, if you yourself were thinking about buying a certain mutual fund what would appeal (or not appeal) to you on the FUND FACTS sheet about that particular mutual fund. Front load, no loads, etc. What is a benchmark? What is YTD, etc., and how does the buyer know if the fund is doing well or not over the long term? How do you compare it to others?
Thank you for your consideration, Adam. Even if you could explain the basics, please.
Just recorded it and it will be posted to the second channel in the next week or two.
@@ParallelWealth Thanks a million bucks, Adam. I am absolutely thrilled with the news that you've recorded it. You are a fine man and I very much appreciate your kindness. I've asked so many people about mutual funds and, well, really few people knew even a little about them even the ones that own them.
I must subscribe to your second channel in this instance. You've made this Nova Scotian a very happy man this Friday night.
Cheers, Adam!
If financial planners were so knowledgeable about the stock market and income investing, they would already be millionaires so there would be no reason for them to be working at a job selling products for the banks or mutual funds. The facts are that most of them know about as little as the rest of the public.
My wife has an MBA and used to be a CPA. She found an excellent Financial Services Representative at Edward Jones 40 years ago and has worked part and full time for Edward Jones for many years. I know nothing about investing and don't have to because my wife and our Financial Services Representative have turned our average incomes into a $5Million nest egg. And FYI our Financial Services Representative is also a millionaire, which means that a part of his $Millions came from our pockets.
An interesting and very original topic for a video by a Financial Advisor/Planner! I do my own investing and planning, having built a rather complex spreadsheet projection tool. However, despite the many hours I put in on building this thing, I still wonder if I'm missing something. I don't think I am, or am I?
Hard to say, but we do a lot of plans for ppl that do very good DIY planning with spreadsheets. That will typically get you 80% there....lots of tax planning typically missed. It's figuring out how all the accounts work together for tax efficiency at drawdown where most plans lack
Only Fee Only.
For most investors at any age or phase of life, an advisor that's not a "fee only" should be disregarded.
Investors should not be fooled into thinking their portfolio should be charged as a percentage of total assets just because it's $1M instead of $100k.
AdvisOr or AdvisEr. Two very different terms that sound the same.
The former with an O is a sales representative without fiduciary responsibility. Caveat Emptor - and sleazy misrepresentation. Beware, these people often work at banks and similar institutions and are not allowed to give independent advice that may not benefit their employer.
The latter with an E does have fiduciary responsibility. They can give independent advice and advise products not sold by their employer!
I wasted 10 years of time and money with an "advisor" at Edward Jones! So glad I pulled the plug and moved my account out of there. They didn't even contact me to ask why I bailed!!
My wife has worked for Edward Jones as an administrative assistant for many years, and believe me there are some doozies out there. But there are also some excellent Edward Jones Financial Services Representatives, and we have had one of the best for 40 years. "Advising" is only a small part of what our Edward Jones Financial Services Representative and his staff do. "Watching out for us" is more of what they do. Investments and potential investments are dynamic entities that fluctuate all over the place, and our representatives are on the phone with us up to several times a month with advice and recommendations regarding our investments. Do they do all that for free? Of course not, and we don't mind paying them for a job well done.
If someone is a really good FA why are they working as a FA? They should all be wealthy and retired. (I know there are reasons: want to help others, too young to retire, got bored, etc.) Jokes aside, how about just use Buffett's advice: start when you're young and invest in say S&P 500 for the long term using very low fee mutual fund, let it compound and grow and retire a multi-millionaire.
One flaw is the school systems do not teach even basic personal finance + marketing brain washes us to spend, not save. So most do not start when young. Scratch that one (Buffett plan).
The one thing I would suggest is to ask to see financial records of prospective FA. What is FA invested in now. What is FA's personal track record? If FA refuses, move on.
Unfortunately financial advisor is one of those nebulous terms that don’t actually tell you anything. Just like counsellor or therapist or life coach. Any know it all can hang out a shingle and call themselves something but have no deep training, degree, or certification in the particular field.
Yes, sort of like a ‘certified personal trainer’.
is it best to buy vfv and xiu and call it a day or do robo investing in wealthsimple
Which of the two is better or the more superior - The Financial Planner or The Investment Manager and which of the two would best assist anyone in creating/ acquiring more wealth over time - The Financial Planner or The Investment Manager
If you need help with your investments, then the investment manager. If it's planning, tax, estate strategy - then the planner. It's like comparing a dentist to a doctor - different jobs, but both can help with your overall health
@@ParallelWealth - What's your opinion on a portfolio strategy composed of a Total Market Index Fund - basically composed of like 3 funds - Total US Stock Market Index (VTSAX) and Total International Stock Market Index (VTIAX) and Total US Bond Market Index (VBTLX)
Question. With my Financial Advisor and inveesting in the stock market RRSP's I recently pulled my money out of the RRSP's stock market and invested in GIC's. I apparently am receiving 4.2% iinterest and I"m happy with this. Question am I still paying the advisor who set the whole thing up for me. I assume she is making money somehow from these funds?
Did you have to pay a lot of tax on the rrsp withdrawal?
@@tomatoseed1443 there was no tax payment for the gov't. I didn't pull it out essentially, I just moved it from one area to another. It's still locked in RRSP only guaranteed investment certificate instead of mutual funds. It's the same thing only different. It's still a RRSP So a lot of the same rules apply.
@@daveaird96 OH, I see. Interesting!
Why don't you ask her? Our Financial Services Representative and his assistants have set up hundreds of investments for us over the past 40 years, and they contact us several times a month regarding them. Do I think that he makes some money off of our investments? Of course. Otherwise how could he afford to lease a building, pay salaries, and acquire sufficient supplies and support services?
How do I find a financial advisor and planner that can guide me in the right direction. I'd rather handle my savings on my own. I went to an accountant to do my taxes and felt like I knew more about calculating average stock price than they did.
www.parallelwealth.com/planning
Hi Adam!
This video came at the perfect time! I’ve been a DIY investor for almost 5 years and have invested primarily in S&P 500 ETFs. I have a meeting in the coming weeks with a gentleman that is both a CFP & CFA and depending on how it goes I might have my money managed by him instead.
As I’m looking for both planning and investing advice, what would be a good MER for this CFP/CFA combo?
Thx!
Will depend on amount of assets. Under 2%. If you are over $500k then 1.5% for planning and investing.
@@ParallelWealth Thx! 🙂
1.5%? Ouch. I’m assuming there is an inverse relationship between MER and AUM?
My in-laws had over $400k embezzled from them by an advisor. Fortunately, they were able to get it back.
Good to hear they got it back
I think young people who are starting out will try a financial advisor/ planner because they don't have a clue about investing and have little money to lose. As time goes on you learn things with some research and common sense and eventually try a Discount broker. I feel the Best Investing is with a Discount broker but "only" if you have had Experience in the markets for years and have learned a basic understanding about the markets. Sadly, statistics show that most people are clueless about investing. It seems that more Intelligent people are doing the right things and Prospering ... !
There is no way of knowing good advice from bad. Stay away from people who claim they can predict future results. If you have any debts you should pay them off first. Then save and try to invest half of you have left over.
How much to just get a retirement plan done by a cfp?
You can see all our prices a d what you would get (plan build and presented by a CFP Professional) at www.parallelwealth.com/planning
So.. the Financial Advisor is like the Jewelry Appraiser, as the Financial Planner is like the Gemologist???? Kinda maybe..?
Divorce is a financial killer for men. Never get married.
For men? Or for both parties?
My bank advisor brought in a financial advisor from their brokerage company..he told me outright he gives my money to another group who distributes the money into different funds...and i pay him 1.5 % commission... I am thinking to myself...I can so the same thing myself...Yes...I am not the typical deer in the head lights bank customer. I want to know the value you are bringing me...don't expect something for nothing..I pay you..I want results. I want constructive input..not just how..you can sell me another product or advisors services. One needs to be aware of how much they are paying for advise..and if your historic returns warrant..what is being paid...are you making or losing money each year...if you're losing ..you need to find someone new...pronto.
Well said Scott.
I grew up loathing the so-called financial advisors- all of them just trying to shove down my throat their high fee Mutual funds. Started to educate myself- also thanks to people like you- and been doing much better financially now. So thanks!!!
After working with several advisers and CFPs, I’m convinced that they do not know any more than I do. Having said that, I do hold an MBA so wouldn’t recommend this for everyone
I would still strongly suggest finding a good CFP. The good ones will have better insight that what you may have received to this point.
Wow ...second comment here and I am one of the 44% number since 1997 and my cfa designated son helps me while I am melting down my RRIF. Great video as always.
One word you don't hear enough is 'fiduciary' - someone that is legally obligated to put your interests first. I'm curious why more 'advise-only' advisers don't push for this more. It seems to be a natural fit as they don't benefit from selling anything.
Just a quick note, I think I was actually part of this survey. Hard to say as they didn't announce who they were, but it looks familiar.
Be very skeptical of that big company that pushes that "fiduciary" word in their advertising. Very good at selling on that lingo but charge a lot of $$ for a substandard product.
@@Porkification - Which one are you referring to? Companies that sell products have fought to avoid having to actually be a fiduciary for years.
My reason for being leery of financial advisors and planners is our experiences in 2008. We were with the Investors Group and didn't have a clue about the stuff we didn't know that we didn't know. That puts the client in a position where they can be taken complete advantage of because they don't even know how they are being used. I would suggest that anyone who is considering hiring someone to look at and advise them on their hard-earned money, that they first commit to some basic investigation on terms, fees, options, etc. Fortunately, we stumbled onto Moneysense magazine (I know it's no longer a magazine but it is online. We haven't used it for awhile so don't know if they have maintained their standard of solid information). I also swallowed my pride and called an uncle who was known in the family as "being smart about money." I decided before I spoke to him that there would be no dumb questions and so I asked him anything and everything I could think of. He was so helpful. I would check in with him every so often as we started the process of transferring all of our money out of the Investors Group (a horror story on its own). We now do all our own planning with the assistance of a fee-based planner out of Edmonton who checks our plans every 4 years or so. We use the DIY feature on TD Direct Investing to buy and sell ETFs and rebalance once/twice a year. At 67 and 73 we also backfill with GICs and have a few stocks we play around with. We have registered and non-registered accounts as well as an emergency fund. We do get very frustrated with the lack of connection between the TD Direct Investing online format and the local TDWaterhouse branches (all of the paperwork you have to do for the online TDW platform has to be shuffled through a local branch and the branch's lack of knowledge about financial terms and processes is shocking). I regularly scan the internet for reliable information from people like you Adam, and watch Money Talk on TV and online to keep track of bigger trends. I agree with you that unprofessional conduct from financial planners and advisors is responsible for the reputations that many of them have, however there are some good ones out there. And it is our job to first know our own goals and plans, spending habits and risk profile before we start looking for the professional planners to help us make the most of our money.
I've been managing my own for 30 years. I beat the average return you describe (by a couple of percent). But, really, that would make it closer to 3 or 4 percent if you factor in not paying an advisor. Recently, I bought an hour of my accountant's time to talk about taxes in general and things to think about as I retire. It was the best return on investment all year. He wasn't telling me what to do, just what he had done for himself and what he might do in my position. I find your videos fascinating. You answer a lot of questions I have wondered about, but haven't had time to sit down and figure out myself. Thanks! After all that, my only advice to others is to never, ever use a bank as a source of financial planning. Banks are like Casinos. You have to ask yourself who paid for the impressive building and all that advertising.
Spot on. Totally agree with your video.
less than 10% of financial planners beat the S&P
That’s after fees, but yes. It is true.
I don't use an advisor. I picked 10 stocks in different industries in Canada. Bought one share of each and asked my broker for the share certificates for those shares. He told me that would be $50 + HST. Perfect. Now for the last ten years I have been putting money into these long positions every quarter. The whole amount goes to the companies, cause there is no transaction costs. My 10 positions cost me $660 dollars including the very first transaction. Never paid a cent more. Another 5-7 years I'll be retiring and living off those dividends that these 10 positions payout. One of the best decision I have made.
Read "The Lazy Investor"
Canadian author. Explains how to use the companies broker to buy shares. Great read. Enjoy.
Lots of good reasons not to have an advisor so I don't understand why you keep going back to saying to get one.
I do my own now. I would have been better off if I had started sooner. Planner - yes, good value. Advisor - okay if you don't know what you are doing.
I will be turning 65 in May of 2027, and therefore my oas will begin in June. Will my 2026 tax return be used to calculate how much gis I will get?
Thanks for doing this type of video. Its shows its still a jungle out there. Hard to make headway if you get the wrong type of advisor.
I do my own stock picking and done pretty good; do my own research.
My bank contacted me
Here's The Facts:
What Is the Average Cost of a Financial Advisor?
In 2021, the average annual fee for a financial advisor’s services was 1.02% of assets under management (AUM) annually for an account of $1 million, according to research done by Advisory HQ News Corp. A 2019 RIA in a Box study of more than 1,350 registered investment advisor firms put the total industry average annual advisory fee at 1.17%, decreasing depending on the size of your account.
However, high-net-worth individuals may pay less, because the fee structure works on a sliding scale. “A reasonable fee would be 1% at $1 million down to 0.50% at $10 million and 0.10% thereafter,” says Ryan O’Donnell, CFP, wealth manager, and founding partner of the O’Donnell Group in Chico, Calif.
In other words, clients should expect to pay a maximum of $50,000 on a $10 million account. Online advisors have shown that a reasonable fee for money management only is about 0.25% to 0.30% of assets, so if you don’t want advice on anything else, that’s a reasonable fee, says O’Donnell.
Nice and good to hear, but how much seniors are capable to manage their own money that they have and depend on ?