You should be your own Financial Advisor

[Fredflintstone]

I disagree that everyone should handle their own investing. We have been very pleased with our financial adviser. We follow financial news and have a decent understanding of various investment options, but he has broadened our portfolio to include some options we wouldn't have ventured into on our own that have done well, while still keeping it within a reasonable level of risk. We pay a fee based on the size of our portfolio but negotiated a lower rate than originally suggested, so our growth isn't significantly affected by his fees. Meeting with him quarterly or so also forces us to focus and reassess our investments more often than we likely would on our own. We don't churn the portfolio but do discuss if we should consider moving our of underperforming assets. We are financially in a much better position that we would be without his advice.

A good financial advisor is a gold mine for many of the points you mentioned. My 2 advisors live and breathe the stuff so they know where to diversify when. My fees are a mere .05 (half of one percent) percent and they both are averaging 10 percent (after fees) in good and bad times. I’m not getting rich quick but I am getting rich. At 55, most of my 3 MM savings is credited to their prudence and knowledge.


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[#1 Cowboys Fan]

Fred,

I knew what you meant, but

".05" = 5 percent

.5 percent = half of one percent

".05 percent" = .0005 MUCH less----I'd pay THOSE fees!!! haha

My wife is getting things ready for a yard sale someday.

She priced something .50¢ ---- thinking that meant 50 cents.

I told her she better be prepared to give change when someone gives her a PENNY!!!

 

[Snazzylass]

Yes, I agree within the US Banking system longevity doesn’t matter as much as the rules are very different than in Canada. In Canada, longevity matters. For example, when the big banks in the US needed bailing out in 2008, the big 5 banks in CAnada were business as usual. No bail outs or crisis here. Also, the Bank Act in Canada has always had strong regulations on how banks must conduct business.


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Ahhheemmm....AIG and Lehman Brothers were not banks. Granted we did have laws in place that caused things to spin out of control. However, at least one US bank was called on to help avert a deeper crisis. A couple of US banks stepped up and inherited mortgage portfolios to service which they did not create.
Forgive me but I don't know anything about Canadian banks. Not even sure if they are public traded.

 

[Fredflintstone]

Ahhheemmm....AIG and Lehman Brothers were not banks. Granted we did have laws in place that caused things to spin out of control. However, at least one US bank was called on to help avert a deeper crisis. A couple of US banks stepped up and inherited mortgage portfolios to service which they did not create.
Forgive me but I don't know anything about Canadian banks. Not even sure if they are public traded.

Yes they are. Royal Bank, TD Bank, BMO, CIBC and Scotiabank are all publicly traded.

I remember there were banks that needed bailing out and were in desperate straights. If my memory serves me right, Citi was one of them.

Here’s a summary of the differences:

Why Canada Didn't Have a Banking Crisis in 2008

www.nber.org

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[Brett]

Yes they are. Royal Bank, TD Bank, BMO, CIBC and Scotiabank are all publicly traded.

I remember there were banks that needed bailing out and were in desperate straights. If my memory serves me right, Citi was one of them.

Here’s a summary of the differences:

Why Canada Didn't Have a Banking Crisis in 2008

www.nber.org

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There are differences but I don't believe the Canadian banking system is superior to the US or that Canada banks are better for consumers compared to the US

 

[Fredflintstone]

There are differences but I don't believe the Canadian banking system is superior to the US or that Canada banks are better for consumers

No, I’m not saying Canadian Banks are superior. I am saying, based on past historical fact, they appear more stable over the long haul.

Saying that, stability has come at some price. This being higher fees in Canada and slowness to innovate.


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[Fredflintstone]

Fred,

I knew what you meant, but

".05" = 5 percent

.5 percent = half of one percent

".05 percent" = .0005 MUCH less----I'd pay THOSE fees!!! haha

My wife is getting things ready for a yard sale someday.

She priced something .50¢ ---- thinking that meant 50 cents.

I told her she better be prepared to give change when someone gives her a PENNY!!!

Oopsy


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[Fredflintstone]

I guess the above explains why I need a financial advisor, huh?


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[Rolltydr]

No, I’m not saying Canadian Banks are superior. I am saying, based on past historical fact, they appear more stable over the long haul.

Saying that, stability has come at some price. This being higher fees in Canada and slowness to innovate.


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Well, count me as one U.S. citizen who would gladly pay higher fees for more stability. Especially, more than we had in 2008-2009!


Harry

 

[goaliedave]

There are differences but I don't believe the Canadian banking system is superior to the US or that Canada banks are better for consumers compared to the US

Lol. Among 1st world banking systems the USA is clearly near the bottom.

FF missed one important fact though, it was due to 2 people that Canada's banking system is a world leader. Jim Flaherty who was named by world's best Minister of Finance by the world's Finance Ministers 5 years in a row by during the "recession" period. 2ndly, Mark Carney the head of our central bank who was immediately recruited for the most prestigious central bank job in the world (England).

You can find many articles about this if you google, here's the first ones that came up.

Top 10 best finance ministers of all time

The current trend in the World Economy warrants resolute and astute finance ministers. Any country’s future is dependent on its economic and financial strategies. Who makes them? The finance minist…

topyaps.com

Where are the most secure countries to have a bank account

If you’re new to the world of offshore banking, you might be worried about bank safety. After all, years of propaganda have led many to…

medium.com

World Economic Forum report on the countries with the world's soundest banks

The UK and US don't make the cut and Switzerland isn't number one.

www.businessinsider.com

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[VacationForever]

We pay 0.8 percent for managed assets. The good thing is that we also have access to investments options which are not considered managed assets. What they do for us is to ensure stability and not lose our savings due to emotional trading. We won't get rich but we won't be poor either.

 

[Fredflintstone]

We pay 0.8 percent for managed assets. The good thing is that we also have access to investments options which are not considered managed assets. What they do for us is to ensure stability and not lose our savings due to emotional trading. We won't get rich but we won't be poor either.

Slow and steady wins the race.




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[Brett]

Lol. Among 1st world banking systems the USA is clearly near the bottom.

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lol - next you're gonna claim Canada has a greater health care system than the US
We know who is really GREAT

 

[Big Matt]

This thread shows how very little people really understand about investing, financial advisers, investment strategies, etc. You really can't simply listen to the advice of a financial adviser. People who think that the advisers do their own research are blinded by the big name investment houses. Your adviser simply sells stuff that the parent company is pushing. Similarly they tell you to diversify into other geographies, into bonds, and even annuities. All of this is classic advice with holes like Swiss cheese. Most fund managers don't outperform the broader market/sectors when the fees are taken out.

Get with someone who you trust who is willing to work with you and not dictate the canned strategies that come from the parent company. Buy great companies and keep them until the stop being great. Don't worry about the stock market falling and rising. There is a huge difference in "why" a stock falls and rises. Sometimes it is due to the overall market and sometimes it is due to something either really good or something really bad with the company. Know the difference. Buy more or buy less of an individual stock based on how the company is run and what their customers think.

Make sure you consider alternative investments as well including real estate investments in your portfolio.

BTW, it is tricky when comparing Canada to the US given the individual regulations in each. Plus Canada has about a tenth of the US population and interest rates are very stable there. Lots less inherent risk in Canada.

 

[geekette]

There are indeed 'investable' Canadian banks. I personally want no part of owning banking, but there are folks (not aggressive investors) that consider them to be great long haul investments. I'm not a total no on fi companies, as I own insurance and AXP.

The universe of investments is large, it is ok to say no to some asset types or industries or whathaveyou. I won't own auto or airlines, for example. I grew up in ag land but won't ever buy futures and don't trade commodities. I would consider individual bonds, but don't want bond funds.

 

[Talent312]

... I would consider individual bonds, but don't want bond funds.

Nearly all my bond-money is in individual bonds. A piffle is in a fund.
Fund NAV's vary, depending on the underlying value of it's holdings.
Individual issues also vary in value, but at maturity, you'll get face value.
.

 

[Fredflintstone]

lol - next you're gonna claim Canada has a greater health care system than the US
We know who is really GREAT

Ok, but the US has tremendous business and employment opportunities. Also, it’s a beautiful country with beautiful people. It has sun spots too so one can live in a nicer climate.

And frankly, Canada would not be in the position it is without the US as a trading partner.

As a Canadian, I value my American friends.

Just gotta say that too... and yes Canadian Health care is better


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[bogey21]

Just gotta say that too... and yes Canadian Health care is better...

My take Canadian Healthcare based on observations during the year I lived in Canada is twofold. First, Canadian Healthcare is undeniably less costly. And Second, once focused on a particular problem it is excellent. It seemed to me that it takes longer to get from "I'm having this problem" to focusing on solving the problem than here in the States. Just my opinion. I may be dead wrong. Heaven knows I have been before...

George

 

[goaliedave]

Ok, but the US has tremendous business and employment opportunities. Also, it’s a beautiful country with beautiful people. It has sun spots too so one can live in a nicer climate.

And frankly, Canada would not be in the position it is without the US as a trading partner.

As a Canadian, I value my American friends.

Just gotta say that too... and yes Canadian Health care is better


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Amen, USA has great people and great winter sun for my 6 months of timesharing .

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[Fredflintstone]

My take Canadian Healthcare based on observations during the year I lived in Canada is twofold. First, Canadian Healthcare is undeniably less costly. And Second, once focused on a particular problem it is excellent. It seemed to me it took longer to get from "I'm having this problem" to focusing on it than here in the States. Just my opinion. I may be dead wrong. Heaven knows I have been before...

George

Yes, Canadian Healthcare is better in terms of affordability. There was a time when wait lists here were awful but that has definitely improved. I have to say, the care my dad got while he was dealing with Cancer was excellent and everything was covered, including home care.


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[Fredflintstone]

I suppose the main plus in Canada is that one need not factor in healthcare costs nearly as much as the US when they are financial planning. Just from reading other posts, a senior needs to work longer (normally) in the US to ensure they have money to pay healthcare (premiums, Co pays, etc.).


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[VacationForever]

This thread shows how very little people really understand about investing, financial advisers, investment strategies, etc. You really can't simply listen to the advice of a financial adviser. People who think that the advisers do their own research are blinded by the big name investment houses. Your adviser simply sells stuff that the parent company is pushing. Similarly they tell you to diversify into other geographies, into bonds, and even annuities. All of this is classic advice with holes like Swiss cheese. Most fund managers don't outperform the broader market/sectors when the fees are taken out.

Get with someone who you trust who is willing to work with you and not dictate the canned strategies that come from the parent company. Buy great companies and keep them until the stop being great. Don't worry about the stock market falling and rising.

Make sure you consider alternative investments as well including real estate investments in your portfolio.

Have you ever used a paid wealth management service? The wealth management company which we use certainly do not push what the parent company pushes or sells. It maybe true for Fidelity or Vanguard who do use their own products but they have good products so in our opinion it is not a bad issue. Our FA does not "tell" us to diversify into geos, bonds and annuities. Instead we decide how aggressive vs. how much hedging we want. While it is true that fund managers don't outperform broader markets/sectors in a bull market BUT they do outperform in a bear market.

We manage our own overall strategy and mix - cash on hand and what instruments to use to provide our retirement income, and several of these pieces are outside of our managed portfolio.

 

[Big Matt]

Have you ever used a paid wealth management service? The wealth management company which we use certainly do not push what the parent company pushes or sells. It maybe true for Fidelity or Vanguard who do use their own products but they have good products so in our opinion it is not a bad issue. Our FA does not "tell" us to diversify into geos, bonds and annuities. Instead we decide how aggressive vs. how much hedging we want. While it is true that fund managers don't outperform broader markets/sectors in a bull market BUT they do outperform in a bear market.

We manage our own overall strategy and mix - cash on hand and what instruments to use to provide our retirement income, and several of these pieces are outside of our managed portfolio.

I'm in a very similar situation to the one you describe. I work very closely with my adviser to come up with strategies that make sense for my overall investment portfolio including other funds and investments that his firm doesn't manage. That we we have an overall view of my investments, risks, etc. My adviser doesn't claim to know the tax laws that well so I have someone else who helps me with that. I also have an estate attorney who keeps my assets protected, etc.