I know that I've commented this before but it bears repeating. I pulled my portfolio out of a bank as there was no planning from the CFP to speak of. He had no way of being able to run different scenarios of turning on different income taps at different times, etc., and when I referred to the RSP meltdown method in regard to which funds to access first upon retirement, he thought I was talking about the Smith Manoeuver. The Smith Manoeuver is not even remotely similar to melting down RSPs. SMDH. Of course in his opinion, the funds to use first were getting CPP as early as possible and not touching the investments. Gee, wonder why that was. When I told him I was moving my funds out, he kept saying 'fees aren't everything you should consider'. And I reminded him, repeatedly, that fees were not the issue. Not receiving an inkling of planning advice was the issue.
Most people don’t pay attention to the fees hidden in their investment accounts, and over time, even 1-2% can have a massive impact on how much you’re actually able to retire with. It’s not just the percentage, it’s how compounding works against you when fees chip away year after year
Hi Adam, my wife and I are jointly clients of a small independent wealth management firm. I'm 63, she's 57. We're getting investment management, retirement planning, and estate planning advice. The all-in fee is 1.25% of AUM. We retain fee-for-service tax advisory separately, to validate recommendations made by our financial advisor. I've known him for years and I'm familiar with his academic background (B.A. Economics + MBA + corporate experience with a global firm + senior executive experience in government) plus he is keenly aware of our philanthropic aspirations and serves in the same type of church ministry as I do. I've been watching your videos for over a year and have become (much) better educated about what kinds of questions to ask. I would very much like to see a video on what red flags to look for in an advisory relationship such as I've described. Thanks for your time reading this, and if you so choose, replying.
This video comes at a good time as I recently booked an appointment with my big bank to pull out my managed funds. I never once received any advice from them and running a MER online calculator showed me the tens of thousands more I was paying than I needed to. Ridiculous fees that can’t be justified.Just on my child’s RDSP alone, I am saving a projected 90k over the life of the investment. 😮
Thanks to increased knowledge and the internet these days,paying anyone-bank or investment planning company is losing yourself money. DIY because any company has their interests in mind and not yours. Take the time and learn about your money and never trust anyone else. Better to put 1-2% in your pocket while learning. Just my experience and glad i took the time to learn and share with my kids
unless you are buying stocks, crypto, or day trade… you are not doing better because you are saving that little 1-2%… saving that little 1-2% is the difference between winning and losing… never met a DIY who beats my holdings
I recently had two phone calls from my Canadian bank discount brokerage pitching private wealth management. I remembered several posts in this channel's comment section and those of similar channels about people dissatisfied with that service from the big banks (ca-ching). I've never read a positive one - a warning sign. Fees matter.
Really important to note you are paying those fees whether your investment capital goes up or down depending on annual market swing. what I could use help understanding is the front loading backend load aspect of mutual funds is that an additional x% charged getting in and out of the fund?
Unless your fee is based on portfolio value - then your investment firm has every incentive to do a great job for you! I pay 1.2-1.5% for my funds right now. Seems reasonable.
Also with all the banking cutbacks I feel investor analysts are stretched a lot thinner these days and really are not doing the deep dive into their portfolio of companies like they should to give their “advice”!
Just look at what returns your planner gets for you. They sometimes have access to products that pay much better returns 8-12%. Do your homework they are also tax deductible when it is non- registered money
Adam: at min 9:50 you recommended looking for new financial advisor if we are dissatisfied with our current one. Could you do a video advising how and where to look for good financial advisors? Preferably NOT during a sponsored video as it seriously undermines your credibility...
The sponsor doesn't offer fee for service advising, so no conflict there! You cna search a CFP in your area. I would interview 3-4 to find a good match. My tip would be to find one that has no in house products and isn't also the person managing your assets.
I am confused, could you clarify? You say that for someone who has less than $750,000 a fee of 2% is OK for an ongoing planning approach. If I have $550,000, that is about $11,000 that I would pay. That is a lot of money, so my question is: is this a one-time fee or is assumed that I am paying that annually? I paid $5,000 last year for a fee per service approach and the "plan" was absolute nuts! I complained about the numbers being off and how the plan seemed to have been put in a rush and did not receive a good response. I ended terribly frustrated (but I learned a lot on my own as a result). What protection is out there for us to know we are actually consulting (and paying) someone who will do a really thorough and professional job?
Question...anyone have an answer? Are fees paid to an advisor to manage a LIRA investment account tax deductible if they come out of a non registered account. I am told "yes" by my advisor and " no" by my accountant. Advisor says that although CRA says "no" it passes audit as they are taking a second look at it and a "comfort" letter has been issued on the topic (whatever that means!)
Generally not tax deductible on registered accounts. Talk to an accountant to get accurate up to date information on that but this is my understanding.
I'm currently paying 0 in fees, although my investment newsletters run me $1000 a year. I'm DIY with my investments, why pay somebody anything to pick an ETF for me? I'll watch enough RUclips videos to figure out my retirement myself. I'm willing to live with the consequences.
Is there any regulatory bodies in this industry? It is really sad hearing so many stories of people being disappointed with their advisors barely hearing from them and getting charged outrageous fees.
Yes, and it’s bias to the banks, banks only need to KYC you and KYP at point of sale ONLY, vs dealing with an individual that is securities licensed, they have to update your stuff atleast every 3 years, ideally once a year or during every interaction. What money sales reps do(cuz that’s what they are) just sell clients seg funds(basically a mutual fund that is an insurance product) so they don’t have to keep all the regulatory notes and requirements
My plan in retirement is to sell all my individual stocks and buy an asset allocation ETF. It will be invested in 94% of the world’s stock markets and will be automatically rebalanced. I will then pay a fee only financial planner to run my numbers on a yearly basis to ensure I’m on track. Overall my costs will be 0.24% plus the cost of a fee only planner. Total cost of investment and financial planning will be less than 0.40%. It’s a low cost strategy that will keep me on track for retirement.
@@rosemaryhoulihan5048 This is exactly what Adam says his company (Parallel Wealth) does! The various fees are on the website. I've used them..... twice.... Im a DIY investor and the service PW provides was worth every dime (both times) and I hate fees.
That’s sad, I know your low cost ETF is going to under preform because the best funds are not in an ETF form, but again, you think saving 1% is worth losing much much more. Ignorance is bliss
I’m new to investing, and l've lost over $80K trying out strategies I found in online tutorials. I’d appreciate any recommendations on stocks that will make me actually gains.
I know that I've commented this before but it bears repeating. I pulled my portfolio out of a bank as there was no planning from the CFP to speak of. He had no way of being able to run different scenarios of turning on different income taps at different times, etc., and when I referred to the RSP meltdown method in regard to which funds to access first upon retirement, he thought I was talking about the Smith Manoeuver. The Smith Manoeuver is not even remotely similar to melting down RSPs. SMDH. Of course in his opinion, the funds to use first were getting CPP as early as possible and not touching the investments. Gee, wonder why that was. When I told him I was moving my funds out, he kept saying 'fees aren't everything you should consider'. And I reminded him, repeatedly, that fees were not the issue. Not receiving an inkling of planning advice was the issue.
Most people don’t pay attention to the fees hidden in their investment accounts, and over time, even 1-2% can have a massive impact on how much you’re actually able to retire with. It’s not just the percentage, it’s how compounding works against you when fees chip away year after year
Hi Adam, my wife and I are jointly clients of a small independent wealth management firm. I'm 63, she's 57. We're getting investment management, retirement planning, and estate planning advice. The all-in fee is 1.25% of AUM. We retain fee-for-service tax advisory separately, to validate recommendations made by our financial advisor. I've known him for years and I'm familiar with his academic background (B.A. Economics + MBA + corporate experience with a global firm + senior executive experience in government) plus he is keenly aware of our philanthropic aspirations and serves in the same type of church ministry as I do. I've been watching your videos for over a year and have become (much) better educated about what kinds of questions to ask. I would very much like to see a video on what red flags to look for in an advisory relationship such as I've described. Thanks for your time reading this, and if you so choose, replying.
This video comes at a good time as I recently booked an appointment with my big bank to pull out my managed funds. I never once received any advice from them and running a MER online calculator showed me the tens of thousands more I was paying than I needed to. Ridiculous fees that can’t be justified.Just on my child’s RDSP alone, I am saving a projected 90k over the life of the investment. 😮
Anyone investing with their bank using an advisor: know that your MER is covering the cost of their new Porsche.
Thanks to increased knowledge and the internet these days,paying anyone-bank or investment planning company is losing yourself money. DIY because any company has their interests in mind and not yours. Take the time and learn about your money and never trust anyone else. Better to put 1-2% in your pocket while learning. Just my experience and glad i took the time to learn and share with my kids
unless you are buying stocks, crypto, or day trade… you are not doing better because you are saving that little 1-2%… saving that little 1-2% is the difference between winning and losing… never met a DIY who beats my holdings
I recently had two phone calls from my Canadian bank discount brokerage pitching private wealth management. I remembered several posts in this channel's comment section and those of similar channels about people dissatisfied with that service from the big banks (ca-ching). I've never read a positive one - a warning sign. Fees matter.
Another great video Adam!
Thanks
relative said take any amount out of RBC 's rrsp and its a $50 fee.
Really important to note you are paying those fees whether your investment capital goes up or down depending on annual market swing. what I could use help understanding is the front loading backend load aspect of mutual funds is that an additional x% charged getting in and out of the fund?
Unless your fee is based on portfolio value - then your investment firm has every incentive to do a great job for you! I pay 1.2-1.5% for my funds right now. Seems reasonable.
Also with all the banking cutbacks I feel investor analysts are stretched a lot thinner these days and really are not doing the deep dive into their portfolio of companies like they should to give their “advice”!
Just look at what returns your planner gets for you. They sometimes have access to products that pay much better returns 8-12%. Do your homework they are also tax deductible when it is non- registered money
Adam: at min 9:50 you recommended looking for new financial advisor if we are dissatisfied with our current one.
Could you do a video advising how and where to look for good financial advisors?
Preferably NOT during a sponsored video as it seriously undermines your credibility...
The sponsor doesn't offer fee for service advising, so no conflict there!
You cna search a CFP in your area. I would interview 3-4 to find a good match. My tip would be to find one that has no in house products and isn't also the person managing your assets.
I am confused, could you clarify? You say that for someone who has less than $750,000 a fee of 2% is OK for an ongoing planning approach. If I have $550,000, that is about $11,000 that I would pay. That is a lot of money, so my question is: is this a one-time fee or is assumed that I am paying that annually? I paid $5,000 last year for a fee per service approach and the "plan" was absolute nuts! I complained about the numbers being off and how the plan seemed to have been put in a rush and did not receive a good response. I ended terribly frustrated (but I learned a lot on my own as a result). What protection is out there for us to know we are actually consulting (and paying) someone who will do a really thorough and professional job?
Question...anyone have an answer? Are fees paid to an advisor to manage a LIRA investment account tax deductible if they come out of a non registered account. I am told "yes" by my advisor and " no" by my accountant. Advisor says that although CRA says "no" it passes audit as they are taking a second look at it and a "comfort" letter has been issued on the topic (whatever that means!)
What about products like Autocallables?
Does my financial planner fee and any other fees on my RRSP RIF are tax deductible?
If you pay out of pocket, yes… if the account pays the fees, no…
Generally not tax deductible on registered accounts. Talk to an accountant to get accurate up to date information on that but this is my understanding.
I'm currently paying 0 in fees, although my investment newsletters run me $1000 a year. I'm DIY with my investments, why pay somebody anything to pick an ETF for me? I'll watch enough RUclips videos to figure out my retirement myself. I'm willing to live with the consequences.
Hi, my advisor, is investing is stocks, not efts or mutual funds. I have 500k investment. Approximately what % should this be?
For investment only, under 1%, ideally closer to .75% all in.
@@ParallelWealth Thanks
Is there any regulatory bodies in this industry? It is really sad hearing so many stories of people being disappointed with their advisors barely hearing from them and getting charged outrageous fees.
Yes, and it’s bias to the banks, banks only need to KYC you and KYP at point of sale ONLY, vs dealing with an individual that is securities licensed, they have to update your stuff atleast every 3 years, ideally once a year or during every interaction. What money sales reps do(cuz that’s what they are) just sell clients seg funds(basically a mutual fund that is an insurance product) so they don’t have to keep all the regulatory notes and requirements
Keep your lettuce in the icebox!! NO fees!
and no returns...
My plan in retirement is to sell all my individual stocks and buy an asset allocation ETF. It will be invested in 94% of the world’s stock markets and will be automatically rebalanced. I will then pay a fee only financial planner to run my numbers on a yearly basis to ensure I’m on track. Overall my costs will be 0.24% plus the cost of a fee only planner. Total cost of investment and financial planning will be less than 0.40%. It’s a low cost strategy that will keep me on track for retirement.
What are some examples of a fee only financial planning companies in Canada?
Also...what is the approximate fee for such a service?
@@rosemaryhoulihan5048 This is exactly what Adam says his company (Parallel Wealth) does! The various fees are on the website. I've used them..... twice.... Im a DIY investor and the service PW provides was worth every dime (both times) and I hate fees.
That’s sad, I know your low cost ETF is going to under preform because the best funds are not in an ETF form, but again, you think saving 1% is worth losing much much more. Ignorance is bliss
I’m new to investing, and l've lost over $80K trying out strategies I found in online tutorials. I’d appreciate any recommendations on stocks that will make me actually gains.