Financial Planner/Advisor

[bigbuck]

Hey guys,

Basically just wondering if anyone has had a good experience or can recommend a financial planner for my wife and I? I’m 33 and my wife is 28. We have a good understanding of budgeting, basic to intermediate knowledge of investing and a relatively decent idea of our future goals. Just looking for someone more or less to see if we are on track, someone to help guide us for certain decisions (big purchase etc), someone we can bounce questions off of and possibly give some intel on individual stocks and review existing investments.

What is the going rate now a days? I’ve also heard horror stories on who you can and can’t trust.

Any info or tips would be appreciated!

Thanks

[lmtada]

Originally Posted by bigbuck

Hey guys,

Basically just wondering if anyone has had a good experience or can recommend a financial planner for my wife and I? I’m 33 and my wife is 28. We have a good understanding of budgeting, basic to intermediate knowledge of investing and a relatively decent idea of our future goals. Just looking for someone more or less to see if we are on track, someone to help guide us for certain decisions (big purchase etc), someone we can bounce questions off of and possibly give some intel on individual stocks and review existing investments.

What is the going rate now a days? I’ve also heard horror stories on who you can and can’t trust.

Any info or tips would be appreciated!

Thanks

Get a good one. No Mutual fund salesman. Here example this guys site.
Greater fool. Garth Turner (former MP Canada and acting finance minister for short time).
Usually depending on how much invest around 1% of your portfolio. Ranges (1.25-0.75) depending how much investment. Get good guys/gals. There likely good investment manager in Edmonton/Calgary.
Micheal Campbell “MoneyTalk “ should throw you couple leads.

https://mikesmoneytalks.ca/

https://www.greaterfool.ca/

[Outbound]

Find a fee only advisor. Interview a few to find one you connect well with. Depending on you net worth and investment goals, going self directed may be the easiest and cheapest method if you're willing to spend some time learning. Questrade is a good option for this, others may have suggestions too.

Stay away from World Financial Group at all costs. It's a multi level marketing outfit and a scam. A google search and a search on the personalfinancecanada reddit will explain it all.

[roper1]

PM sent

[bdub]

Fiduciary/Portfolio manager. Look for those terms when paying for advice. Or take a serious, serious effort to educate yourself. We learned the hard way very early on thank goodness. Seen a couple disaster stories first hand of crap portfolios built buy financial planners. Lousy diversification, risk levels way out of wack and ridiculously high fees being paid. Pretty brutal what has gone on in that industry in the past.

[Jigsalot]

I have done well sticking with my bank. TD and Royal have very solid funds and experienced fund managers. Banks do offer good financial planning.

[Ursus]

You'll do better (or as well) with a DIY approach. There's nothing complicated about financial planning if you follow some basic rules. I suggest the financial section of the Globe and Mail: Rob Carrick for example. The book by David Chilton - The Wealthy Barber: The Common Sense Guide to Successful Financial Planning is an easy to follow set of guidelines. I've used it for over 30 years. Any advice you pay for will cost a lot & no advisor can beat the markets. Use exchange traded funds (Carrick puts out a list every year). Keep your fees low or they will eat up your savings. Bottom line: no advisor has a crystal ball. Sure they can give you their opinion but ask another advisor and there's a high likelihood of a different perspective.

[big zeke]

I don't think you are looking for a financial planner, rather an unbiased review of current situation and future goals. In the past I have used Rose Raimundo, she is a private gal that will do a review of your situation and some simple future value calcs. Google her, she is located in NW Calgary.

Key steps, regardless of who you choose:
-know your spending, we keep track of any expenditure over about $10 in something called the Money Book (binder stored on the island in the kitchen). Month end I total up the spend and allocate into some categories (Transportation, food, utilities) and try to figure out if the spends are one-time (Don't expect to have the same expenditure within 3 months) or recurring (will have similar within 3 months).
-Know your income, again keep track in the money book, all cash flowing into the household every month
-Figure out what is discretionary spend...not saying to not spend it but it is the first thing to go if you need to tighten the belt.
-Try to spread out large one time expenses over some time. For example, I put my daughters driving lessons ($1000) on my Visa and spread that expense over 2 billing cycles at no cost to me.
-Plan for any large expenses (like Xmas) and spread them out as much as possible. I'm about half done my Xmas shopping already.

The challenge with retirement saving is most folks start late and need to save huge sums in order to retire. Set aside cash early, let it compound, avoid fees unless they give you access to investments nobody else can get, monitor growth and adjust risk levels to match, be realistic with cost of living (nobody wants to eat cat food in their retirement) and above all...start early. Avoid MLMs (multi level marketing, WFG et al) firms that are useless and self serving.

There are some real wise cookies on this site, tap into their guidance...Dean2, I'm lookin at you

Zeke

PS. did I mention start early?

[bigbuck]

You nailed Zeke.

Don't necessarily need an advisor or planner but someone that can do an overview of our situation, maybe fine tune some things and someone that can answer any questions or give input on ideas i may have.

Thanks for the input!

[skidderman]

I have had a few so called advisor's over several years. All of them were a waste of time and in fact I think were only looking out for themselves. If you want very good money advise google Dave Ramsey. His main focus is talk shows but has several books out one being Financial University. The advise he gives is way better than any advisor. His main focus is getting out of debt but his overall advise is priceless. He is based in the US but his advise is universal. 1000 times better than any advisor.

[tri777]

Originally Posted by skidderman

I have had a few so called advisor's over several years. All of them were
a waste of time and in fact I think were only looking out for themselves. .

I am a big believer in the bolded also!

[Cow Town Bill]

Originally Posted by Jigsalot

I have done well sticking with my bank. TD and Royal have very solid funds and experienced fund managers. Banks do offer good financial planning.

I fully agree. There is no direct fee for consultation etc---their fee is built into their mutual fund fees. Most major financial planners only deal with people who have investments in the 6 figures and higher.

[ditch donkey]

Think of the wealthiest person you know. The actual wealthiest person, not the one who looks like they are the wealthiest. Ask him or her if you can bounce a few questions off them.

What do they do with money? Who do they use for planning? How do they make their money? You can get a lot of information without getting too personal.

It sounds like you’re looking for an advisor, but you could probably use a mentor as well.

[ditch donkey]

Originally Posted by skidderman

I have had a few so called advisor's over several years. All of them were a waste of time and in fact I think were only looking out for themselves. If you want very good money advise google Dave Ramsey. His main focus is talk shows but has several books out one being Financial University. The advise he gives is way better than any advisor. His main focus is getting out of debt but his overall advise is priceless. He is based in the US but his advise is universal. 1000 times better than any advisor.

Man! When I first listened to this guy, it was like he was talking to me!

I’m 40, no loans, or credit card debt, and will be mortgage free by June. Maybe earlier!

[pgavey]

The Investors group in Calgary in 4 years turned my $109,000.00 into $42,000 And it took almost a year to get away from them. A very hard lesson to learn. Do it yourself.

[badbrass]

Left them 25 years ago! Best thing I did in a long time!

Originally Posted by pgavey

The Investors group in Calgary in 4 years turned my $109,000.00 into $42,000 And it took almost a year to get away from them. A very hard lesson to learn. Do it yourself.

[bdub]

There's a ton of empirical evidence that mutual fund managers underperform their respective benchmark after fees, research and trading costs are factored in. Buying the top ten holdings in whatever mutual fund suits your fancy is going to outperform the fund more times than not. And most investors would be better served using a simple, low cost index fund in whatever asset class you are wanting to invest in, rather than wasting your money and time buying a mutual fund from any bank. All the various asset classes can be covered by low cost ETF's that are 99.9% going to outperform any mutual fund after fees over time.

You are also probably better off spending money on advice on asset allocation and tax planning rather than on which stocks or mutual funds to own. That where most people screw up imo. They think they are well diversified yet their portfolios are holding nothing but CDN stocks, or US stocks for example, or even worse nothing but stocks in a certain industry. Or they are so risk adverse that they only hold GIC's or bonds. And/or they don't bother taking advantage of the tax shelters, options available.

Put some effort into educating yourself and you can save hundreds of thousands of dollars in fees and taxes over a lifetime. Spend less than you make, invest wisely, watch the fees, your taxes and trading costs and don't loose your head when volatility hits markets and you should do well over time. And pray that the governments don't screw us all over with their stupidity.

Good luck.

[buckman]

Originally Posted by tri777

I am a big believer in the bolded also!

So true.

[Dean2]

Okay, so for all you self styled investment gurus who say an advisor is a total waste of money tell me:

1. How do you make you mortgage interest tax deductible
2. How can you pay yourself for your mortgage and still make the interest tax deductible
3. What level of dividend income is still virtually zero tax
4. How does the donation of ecologically sensitive classed land affect capital gains on that land and what is the tax benefit of donating that land.
5. When should you start taking money out of your RRSPs, should you wait to mandatory 71 RIF out.
6. When should your start collecting your CPP based on your age, income, pensions etc.
7. What is the difference between the marginal tax rates on different types of income.
8. How do you effectively get your average tax rate down to 15% on 220,000 of combined income for a married couple.
9. Are the insurance plans offered for end of life tax coverage a good deal. Does it change if you are single or a couple.
10. What is the most tax effective way to transfer property to thos that will inherit. Should that be before or after death.
11. What is the most effective ways to transfer ongoing income streams to inheritants.
12. Would you benefit from a change of residency or even country to manage tax loads while working, during retirement and on death,

These are just skimming the surface of the questions that a good financial advisor should be working through with you. So here you have the basis of some good questions to ask if you have an advisor and a whole pot load of studying you need to do if you are doing your own investing and planning and can't currently fully answer every one these question.

[58thecat]

Originally Posted by Dean2

Okay, so for all you self styled investment gurus who say an advisor is a total waste of money tell me:

1. How do you make you mortgage interest tax deductible
2. How can you pay yourself for your mortgage and still make the interest tax deductible
3. What level of dividend income is still virtually zero tax
4. How does the donation of ecologically sensitive classed land affect capital gains on that land and what is the tax benefit of donating that land.
5. When should you start taking money out of your RRSPs, should you wait to mandatory 71 RIF out.
6. When should your start collecting your CPP based on your age, income, pensions etc.
7. What is the difference between the marginal tax rates on different types of income.
8. How do you effectively get your average tax rate down to 15% on 220,000 of combined income for a married couple.
9. Are the insurance plans offered for end of life tax coverage a good deal. Does it change if you are single or a couple.
10. What is the most tax effective way to transfer property to thos that will inherit. Should that be before or after death.
11. What is the most effective ways to transfer ongoing income streams to inheritants.
12. Would you benefit from a change of residency or even country to manage tax loads while working, during retirement and on death,

These are just skimming the surface of the questions that a good financial advisor should be working through with you. So here you have the basis of some good questions to ask if you have an advisor and a whole pot load of studying you need to do if you are doing your own investing and planning and can't currently fully answer every one these question.

dam Dean....google is our friend eh you know and I know that each individuals finances are different and perhaps need a little guidance along the way but if the person is willing to take an investment in time towards their financial future it is relatively easy.....many like to have someone else do things for them and have to be careful along the way....to each their own but I strongly recommend investing your time in your financial planning ensuring you fully understand what your needs are etc as your portfolio grows....its a journey for most not a scratchy get rich overnight....starting early is key though.

[Dean2]

Originally Posted by 58thecat

dam Dean....google is our friend eh you know and I know that each individuals finances are different and perhaps need a little guidance along the way but if the person is willing to take an investment in time towards their financial future it is relatively easy.....many like to have someone else do things for them and have to be careful along the way....to each their own but I strongly recommend investing your time in your financial planning ensuring you fully understand what your needs are etc as your portfolio grows....its a journey for most not a scratchy get rich overnight....starting early is key though.

Problem is, more than 85% of those doing their own investing don't even know these are questions let alone how to research them. I would bet about 40% of licensed financial advisors would fail this relatively simple set of test questions.

[58thecat]

Originally Posted by Dean2

Problem is, more than 85% of those doing their own investing don't even know these are questions let alone how to research them. I would bet about 40% of licensed financial advisors would fail this relatively simple set of test questions.

your right....I got a dead beat ex brother in law running up and down the Island taking advantage of the elderly....married 18 years...we thought they were doing fine...two house...beauty office....awesome vacations...dust settled...8.5k is all that was left....financial advisor?....financial disaster is more like it...….like I mentioned earlier if you can start early and remember it is not a sprint rather a well planned out journey that changes as your livelihood changes....it can be done on your own but you gotta invest your time into this as it is your financial future.....research..ask the questions...plan...execute.

[lmtada]

Don’t end up like these guys with bad investment decisions.

https://www.thesportster.com/hockey/...st-everything/

[bdub]

Originally Posted by Dean2

Problem is, more than 85% of those doing their own investing don't even know these are questions let alone how to research them. I would bet about 40% of licensed financial advisors would fail this relatively simple set of test questions.

Thats is true. And also a great opportunity to give something back to AOers. A guy should post up some of these topics in detail for the benefit of members. I would be interested in that.

I am looking for advice and firsthand knowledge on setting up a foreign company for holding a rental property/second home in Belize so if any one on here has any one has expertise in that area I would sure appreciate it hearing it.

[Dean2]

Originally Posted by bdub

Thats is true. And also a great opportunity to give something back to AOers. A guy should post up some of these topics in detail for the benefit of members. I would be interested in that.

I am looking for advice and firsthand knowledge on setting up a foreign company for holding a rental property/second home in Belize so if any one on here has any one has expertise in that area I would sure appreciate it hearing it.

Problem with your theory is that AOers believe financial advisors are worthless. I never actually worked as an advisor but I had large groups of advisors that reported to me. I ensured they got a ton of training to make them the best possible advisors they could possibly be. I lead a lot of that training myself to ensure they got it and were competent to pass it on. Why in the hell would guys like me pass on that knowledge to people that have zero respect for what we know. Google is their guru and buddy, if only they knew what questions to ask.

[bdub]

Originally Posted by Dean2

Problem with your theory is that AOers believe financial advisors are worthless. I never actually worked as an advisor but I had large groups of advisors that reported to me. I ensured they got a ton of training to make them the best possible advisors they could possibly be. I lead a lot of that training myself to ensure they got it and were competent to pass it on. Why in the hell would guys like me pass on that knowledge to people that have zero respect for what we know. Google is their guru and buddy, if only they knew what questions to ask.

Good on you and your organization fir making an effort on training. What are the training requirements for advisors?

I think perhaps the bad wrap advisors get may have been deserved in many cases, perhaps due to lack of regulation. Is fiduciary duty a requirement of financial advisors now? I don’t know. How do you feel about that being a requirement for advisors?

[Twisted Canuck]

Originally Posted by Dean2

Problem with your theory is that AOers believe financial advisors are worthless. I never actually worked as an advisor but I had large groups of advisors that reported to me. I ensured they got a ton of training to make them the best possible advisors they could possibly be. I lead a lot of that training myself to ensure they got it and were competent to pass it on. Why in the hell would guys like me pass on that knowledge to people that have zero respect for what we know. Google is their guru and buddy, if only they knew what questions to ask.

Hey now, some of us quite like the professional advisors we have. I spent 40 years learning trades and how to build things, and I am pretty damn good at it. I also spent some time learning about finances...enough to know that good advisors are worth the price. I don't scrimp on accountants or lawyers either when I need them. For all those who have it figured out and don't need any advice, kudos. I learned a long time ago to not overestimate my abilities or knowledge, because it always led to costly learning events. The Dunning-Kruger effect is strong on this forum, I will agree.

[skidderman]

Where are these good financial advisors? I would not have a clue where to look & if I did find one I would be fearful of getting a bad one.

[roper1]

Originally Posted by Twisted Canuck

Hey now, some of us quite like the professional advisors we have. I spent 40 years learning trades and how to build things, and I am pretty damn good at it. I also spent some time learning about finances...enough to know that good advisors are worth the price. I don't scrimp on accountants or lawyers either when I need them. For all those who have it figured out and don't need any advice, kudos. I learned a long time ago to not overestimate my abilities or knowledge, because it always led to costly learning events. The Dunning-Kruger effect is strong on this forum, I will agree.

Agreed. I spent my early years earning & saving, but there are times you just pay the man. As Dean said, some tax deferral, strategic changes, new companies & products are beyond my scope. I have no Mutual Funds & very few bonds. As well, I'm still working a pile, so would rather use that time & energy to earn yet & have a little fun. I've said for years a good lawyer & a good accountant are a good investment. Good investments aren't cheap very often. I don't try to fix my computer either.

[EZM]

Originally Posted by Dean2

Problem is, more than 85% of those doing their own investing don't even know these are questions let alone how to research them. I would bet about 40% of licensed financial advisors would fail this relatively simple set of test questions.

There's also a distinction between a financial planner and investment advisor and any some that do both and yet others that say they do but don't - you just need to understand what it is you need and want to accomplish.

And, an advisor, at least for me, puts me onto things like tax benefits, taking advantage of some provisions pertinent to my situation - and a good one will save you money.

But, IMHO, they aren't there to "make" you money - and there have been times where my self directed portfolios did better comparatively to what "investment advisors" would direct me towards.

Maybe because I have (purposely) decided to diversify - like I have property (rental), some "off the shelf" typical Bank products, a investment advisor who has a little piece of me and some self directed equities which are about the same value as the investment firm gets.....chump change to the tycoons out there.

Always looking to mitigate my potential liabilities.

Maybe if I lumped it all into one and rolled the dice maybe an "big time" investment advisor would make me rich ........... but I am not "big time" myself, so I trudge along and read, learn, read some more, learn, etc...

You gotta get some advice - vet it - consider the motive of the person giving you that advice - research it - then make small steps and not put all your eggs in one basket. You may not get rich, but you will sleep well at night.