Do Not Settle For Bad Financial Advice | 3 Tips To Find The Right Financial Planner
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- Опубліковано 8 чер 2024
- Learn more about our services: www.parallelwealth.com/planning
Find a financial planner: www.fpcanada.ca/findaplanner
In this video, I'll discuss an email I received from a client that displayed some bad advice that they got from their bank. This happens far too often, so we'll go through 3 tips that'll help you find the right financial planner for you.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your savings plan on track. You can learn more about our services at www.parallelwealth.com/planning or email Info@Parallelwealth.com
OUTLINE:
0:00 - Introduction
1:01 - Client Situation
3:33 - Why Do Banks Give Bad Advice?
5:07 - Tip 1: Find a CFP
8:14 - Tip 2: Experience
10:28 - Tip 3: Get What You Pay For
16:19 - Summary
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
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I'm 10 yrs away from retirement but I'm learning a lot from this channel. This is a gold mine of knowledge regarding retirement. Adam is very generous of doing this video.
Thanks Beth!
Thank you - SO MUCH - for this wonderful advice!
Great advice and fantastic channel.
Thank you, Adam
This was such an important presentation. I wish my cousin who passed away in 2015 knew about this information. I was his executrix of his massive estate....there was a conflict of interest issue that I found out during the role of executrix....fortunately I grew his investments significantly because I am a DIY investor. This helped the other beneficiary's lawyer finally realize I did an excellent job and a lot of work. Adam, better late than never eh! Keep up the good work....💯🇨🇦
Good advice
Been enjoying your videos Adam. Can you do one about tax exemptions at age 65. Thanks for doing all these.
Nice video- when you invest at the bank it's normally only the pfp that takes care of all the investments etc and ur right there is no planning involved- only investment of yr $$- so if u invest at a bank- unless the person is a cfp- u r only getting one part of the advice bec I hv not heard of 2 ppl touching a single clients account/ investment - would appreciate any advice as most have their investments with the banks and prob hv the same question. Thanks
I agree 100% to be very careful with investment advice and products from the big 5 banks. I have an RESP with a bank, and the fellow I am dealing with has literally no idea how an RESP works. He has been awful and his advice is quite frankly dangerous. It scares me to death that this dude is giving anyone financial advice. Additionally, the products and rates offered by the big banks are terrible as well. Use a fee only advisor like Adam!
found one answer in an older video of yours, I cannot transfer income from an rrsp it has to be a rrif. And I also found that I can split an rrsp into part rrsp and rrif. Maybe the answer to the CCP question is in an old video as well.
Hi Adam! I am tremendously grateful for educating us, for your advice!!!
Do you still have financial planner trainee opportunities??? My son is looking for this opportunity....
Unfortunately not right now.
I need a planner that can explain things to me in a way I can understand, this builds trust. I have encountered many people who don't do this. Your videos are very informative and that's what I want. I usually ask a few questions and make judgements on the firm by the responses. There are a couple of questions I had and I hope you could answer them for me. I am 65, can I draw money directly from my RRSP and split it with my wife? I am still working, should I stop contributing to CCP, and if so why? That's a lot to ask but I hope you have time for me. I firmly believe people should earn a good living for providing good service to others, so I am curious as to your responses and maybe we can do business. Thanks for this great video!
Hi Adam, this is great advice. As someone who recently retired, do you have a check list of what we should be getting for services from a financial planner and from an investment adviser? Thanks.
Yes, you can email info@parallelwealth.com
Hi Adam. Do you have any videos on weighing moving a small pension (DB with less than 5 vested years) out of the pension plan and into a LIRA vs. leaving the small pension where it is with the intent of receiving small monthly payments once retired? If you don't is this something that you might considering making a video about? Thank you!
Just did one on this last week...but each person's options are different...so its really a case by case scenario at the end of the day.
@@ParallelWealth Thanks for the reply. I did see that one (if we’re thinking of the same one) but that example had a significantly larger amount in the pension with many vested years, rather than a small amount after only a few years and I'm wondering about putting those funds into a LIRA (mutual fund or other investment vehicle) and letting it grow there rather than leaving it in the pension when leaving that employer.
excellent advice. i would add to educate yourself as much as you're comfortable with. if people can become more of an expert in their own situation they can ask the important questions when seeking advice and support from their advisor. it's like going to a mechanic when you know nothing about cars vs at least a few shop classes.
Great vid thanks . With re to mutual funds and the mer we pay - thought it was part of buying / investing in a mutual fund - are u saying that if it's 1% planning and 1 % investment advice - the bank investment advisor/ personal banker gets 1% ? Other 1% goes to the fund manager ? They talk abt mer for the fund but don't mention who that $ goes to... therefore thought of clarifying.
Yes
I love how passionate you were on this video.
So Adam, I get the $ you charge but lets change this to % on $300k your 3k fee is 10% on a $1m your fee is nothing but if my situation is 100k or 50k your $3k charge is simply unaffordable yet I would guess your amount of work is much much less to plan as the options for someone with 100k making 50k income are much much less.
Am I missing something?
Is it not worth getting financial advice at those lower income levels?
$3k on $300k is 1%, not 10%. The plans we put together take the same amount of time if you have $100k or $1M - same tax and income planning strategies. End result will differ, but the process and time it takes is the same. We have done plans for all walks of life and are able to save tens to hundreds of thousands per plan. Common sense would say the larger the assets, the potentially larger savings -which would be accurate.
@@ParallelWealth Yes 1% silly typo. Thx for the reply.
I am just trying to understand what is needed, provided by who and how to know who to trust.
I heard everything from "they are charlatan" to " you cannot succeed without one".
Earlier today I watched a video where you explain the different certifications and that was very helpful. I think the person I once spoke to at my financial institution had none of these certifications.
Very strange, I will keep watching and learning from your videos.
The first thing to learn is all the acronyms!!
LOL, could go on for days!
I enjoyed that video, Adam. Any chance of a video covering the onboarding process with Parallel Wealth, and what the interactions would look like? i.e. Who does what, which person handles which elements of the engagement (i.e. where does Matthew fit in), etc. If you have something like that already - please point me to it.
Jody, we can definitely do one on this. We 'try' not to push our services too much here as we want it to be an information channel, but probably a good idea to do. Thanks.
Hi Adam, great thought provoking content. Question for you sir. I am 54 and retired in Canada.
1/My financial planner who looks after my financial life has many credentials MBA CFA CFP (Can, US) RFP TEP FCSI CIWM
2/He has plenty of experience, and is well known in the industry.
Now my question…
3/You mentioned benchmarks of over and under 500k..
Now my question, Are those the only benchmarks? If investments are over 3 million would they generally still follow the .75 %+ .75% ??
Usually we see it drop to 1.25% at $2M and then 1% all in at $3M. These are general numbers but give you a good reference. If you are North of $3M you should be at .5% for the investment management and .5% for planning.
Feels like a bit of a lame question. If an advisor is charging the suggested .75% on an account over $500K, and they recommend ETF's, does their fee include the MER's for the ETF's?
Bruce, great question. The 0.75% investing fee should include stock trading. If you want a managed ETF portfolio likely pay closer to 0.50%. Online firms like Wealthsimple charge 0.50% for their managed ETF portfolios, but that includes all in costs of the platform etc.
I have seen some firms charge 0.75% to pick ETFs for you, then charge platform fees, annual fees and more.
In my opinion, hiring someone to manage an ETF portfolio is the same as hiring someone to pick a mutual fund portfolio - just costs a little less, but still too much!
Just curious, if I understand correctly, a person should be paying about .75% for investing services and .75% for planning services. So on a 1 million $ account it should cost $15000 per year? That sounds pretty pricey!!!
Correct. For many doing it on their own is much more expensive! Also, I think that fees are the reason we have a lot of DIY investors and then they hire a person like myself to create a plan separated from product.
They probably meant OAS
My investments with one of the big chartered banks have done very well, but they gave me idiotic advice on one occasion. I was told that my investment of $150K is so sound, it will grow to a million dollars when I am 90! After all the retirement spending! Wow. What was wrong? They left out....FOOD. Yep. Housing and automobile were taken care of, but we must give up all eating. Also vacations and discretionary spending. I also have a small fund at Daniel Jones, with a total and trustworthy pro as an advisor. What keeps me at the big chartered bank is its venerable and safe image. Are firms like Daniel Jones insured and safe like the chartered banks?
An important video Adam. People don't need to know everything but everyone should learn at least enough about their pensions and investments to be able to recognize bad advice when they see it. There are of course different perspectives but knowing the basics is a good thing so you can at least understand what is best for you.
Investment Fee and Planning Fee charges via RRSP by bank, Financial Planner❓Please help re: to understand RRSP - M.E.R. 🙏 Thank you 🙏 You are the best❗️🙏
This 2% or 1% fee is calculated from total of my invested money or % from profit investor making from my money?
Invested money
So is there a website for certified investers?
FP Canada has a search function where you can find a CFP Professional in your area
Hi Adam. Can I still work part time while starts receiving CPP at 65 or 70 to catch up with extra expenses?
Yup
It's my understanding if you are in a Public Pension Plan (Government) then there will be a claw back on the CPP payments at 65.
Nope, your calculation works just like everyone else
@@ParallelWealth Thanks, yes I just checked on the Pension Plan and I will get a bridge benefit until 65 then I loose that at 65 but no claw back on the CPP. Financially for me it will be beneficial to take my CPP at 60. Thanks for the video's they have helped a lot.
@@Thatcanadianguyhey There is a potential claw back on OAS, not on CPP. Also look into Adam’s videos when it makes sense to take CPP at 60.
Banks can be described as the legal mafia!
I wouldn’t say legal … lots goes on off the books and against the law.
You are so right. The sooner people realize the only one who will look after your financial future is yourself the better
The banks have only one interest in you. Getting your money into their high cost mutual funds. My friend just received a sizeable inheritance and the nice people at the bank are trying to get him to invest through them. My friend currently rents and could buy his own place outright and the bank tried steering him away from that by showing how well his investments would do under their management. Told him he would be house poor if he bought his own place. They showed him a fund chart from 2008/09 when the market tanked. Absolutely criminal what the banks get away with.
I met with a PFP (Personal Financial Planner) from one of the Big Banks for the first time. Very unimpressed. Here are some additional tips to select the Right Financial Planner:
1. How do they start the meeting. Do they impose an agenda on you or do they ask how can they help you
2. Do they interrupt you or talk over you
3. Do they listen
4. Do they answer the question you ask or do they give you a totally different answer
5. Do they sell you products which will give them a higher commission. Or are they looking out for your interest
Bottom Line : Never, but Never select a Financial Planner from a bank
That's because they are looking out for THEIR best interests. They are all salesmen...or women.
@@ChrisR57 100% correct. The problem is in a title "Financial Advisor", so people expect advice... it's just a job title, not a qualification.
Thankfully I researched some of this stuff that Adam just spoke about and was able to get some of my stuff done right, but only after already losing money when I listened to their "advice". For example, my "advisor" doesn't understand that "withholding tax" is just tax that CRA holds for you and will be part of your tax return at the end of the year. My "advisor" keeps on referring to it as a penalty and claims I will lose 5 or 10 or 20% if I take cash out... no I won't, I will just pay tax ahead of time.
Don't ever listen to bank advisor, either get educated or hire somebody.
Lack of knowledge on the part of bank employees is criminal.
I had an advisor who had not heard of CPP.I swear it.
If my bank told me that, or any planner, i would be changing immediately. If they’re that unknowledgeable or that sneaky about my money, then I don’t want them handling it.
Forget investing with a bank and do it yourself.
Assemble it yourself.
Built it yourself
You'll save so much.
At 2.3% MER fees (Management Expence Ratio) for 20 years, fees will have taken 30% to 40% of your money.
Shocking ain't it, but true.
High fees is part of the problem...the biggest issue is paying fees for something your aren't getting.
To be fair bank advisors are for the most part glorified designation for the sales department 😂