That's why you go with the few recommended professionals who manage most of Toronto's wealth. You don't manage in excess of $11 billion by fluke. Once you reach that level you're in an elite class of financial gurus.
Agree but market has been good recently so let see you stay in during meltdown also I am not convinced better mutual funds do not have value that index funds do not esp protection against loss during melt downI've doubled my money in the last 5 years by investing in index funds that track the total US stock market (ETF: VTI). Please don't listen to the people that say index funds are bad. Usually they are trying to sell you a high fee product. Also, individual stocks are risky. Most individual stock investors can't even beat the indexes!
Warren Buffett recommends the S&P 500 index for most investors. I would also recommend checking out https://www.bogleheads.org/. Before starting investing 5 years ago, I was completely lost with investing. It's thanks the bogleheads forum that I created their recommended 3-fund portfolio and have not looked back. Buy+hold is what I have been doing and it works.
Most hedge funds, which are restricted by law to the rich because of their risk, do not beat market so I have no interest in them and when they do get lucky the managers gut your return with their takeThat's why you go with the few recommended professionals who manage most of Toronto's wealth. You don't manage in excess of $11 billion by fluke. Once you reach that level you're in an elite class of financial gurus.
I agree with you 100%. Most advisors will be trying to make as much commission by buying and selling you tons of mutual funds. The best thing you can do is open a discount brokerage account with TD Or BMO Investorline and educate yourself by reading the Globe & Mail and MoneySense.caI have met with several advisors. A lot of them have standard sales pitch but really are mutual fund salesmen. I do not trust them or their qualifications
Very frustrating
This guy. He provided a yield of 20% year-over-year for the past 3 years for a friend.... Manages over $11 billion in wealth. I know a few industry gals that invested with him as he had some good financial strategies to mitigate CRA concerns.
So, where do you find these independent, objective financial advisors who do not get a % of your investments?Two things:
Invest in a good Financial Advisor....these people are not affiliated with any bank, mutual fund etc. They, for a flat fee, analyze your financial status, and needs/goals and make strategy recommendations. I did, and got great knowledgeable advice on how to manage my money given my risk tolerance.
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I guess you can try google for Investment planners...........independent. I found mine through a referral. I paid a flat fee based on what I needed. Not cheap, about $4000, but worth every penny to me. He recommended classes of and mixes of investment to meet my goals, but not specific companies....he doesn't get any kickback from the companies based on my investment. He doesn't invest for you...he doesn't sell anyone's products. When you know what you want to do, shop around for the product you chose.So, where do you find these independent, objective financial advisors who do not get a % of your investments?
Haters going to hate. You sound like some jealous tool that works in the industry and probably doesn't even manage 0.01% of what his portfolio is worth. When you're this good you can afford to remain low key and you have investors seek you out.There's no way in hell he manages $11Billion.
1) This 1% anual fee = a 9.1% front-end load of a mutual fund over ten years if the market is flat. If the value increases the fee equvelant fee is much higher. I doubt 9.1% load on mutual fund is allowed in Canada. 5.75% in the max in the U.S. and usually for very small investments. Unless you are an active trader, you likely pay much higher fees long-term under an asset based fee vs commisions on mutual funds. They key is the advisor and his firm is independent otherwise from the fund.Second, not sure it has been mentioned there are new vehicles now...managed by robo-advisors. These are the Uber of stock investing! For about a 1% annual fee they will invest your money on the basis of your risk tolerance in a portfolio that operates within specific parameters. The computer system adjusts the holdings to maintain consistency with your risk/reward instructions. Lots written on them.
I think front end loads charge no additional fees, I think. That may be the point Dave is making.Very interesting, Dave. Can you explain to a total rube how paying one percent a year for someone to manage your money ends up costing much more than buying many fee-style (front end version) mutual funds? I'm sure you are right, but maybe you could take us through an example. Let's say I'm Joe Canadian with $50,000CDN to invest, either by paying someone 1% yearly to look after my money, or by my purchasing mutual funds myself. Use a five or ten-year time frame. Please keep it simple, because I'm dimmer than Joe. (I gather Cdn. mutual are more costly than US funds in annual fees, so use some reasonable Cdn. fee rate.)
I sound like a tool because I live in the real world? There isn't a retail portfolio manager in Canada that manages $11Billion. There are barely Institutional PMs with books that size, and trust me, they're not at Hollis. It's a small street and a trader like myself knows all the players and all the big books. He isn't one of them.Haters going to hate. You sound like some jealous tool that works in the industry and probably doesn't even manage 0.01% of what his portfolio is worth. When you're this good you can afford to remain low key and you have investors seek you out.
Of course he doesn't and you explained in your lengthy reply. I called him out on it earlier.There's no way in hell he manages $11Billion.
While Investment Advisors in Canada do not have a legal obligation of fiduciary duty to clients, most responsible firms do impose some level of compliance to these principles on them. However, if you want an advisor that is required to have that legal duty, here is Canada they're registered as Portfolio Managers with discretionary authority over client accounts.1) This 1% anual fee = a 9.1% front-end load of a mutual fund over ten years if the market is flat. If the value increases the fee equvelant fee is much higher. I doubt 9.1% load on mutual fund is allowed in Canada. 5.75% in the max in the U.S. and usually for very small investments. Unless you are an active trader, you likely pay much higher fees long-term under an asset based fee vs commisions on mutual funds. They key is the advisor and his firm is independent otherwise from the fund.
2) In the U.S. we have "Registered Investment Advisors" under the SEC which have a fiduciary duty to look after the clients best interest not the RIA's. It appears you do not have such a status in Canada.
Since you don't have RIA"s. I know you do have CFP's (Certified Financial Planners) that are at least required to follow extensive ethics and often operate as fiduciares - althoght that is a current hot topic with the CFP board.
I am not recommending my guy, I am just going to tell you what he does, which I think proves there are guys out there that aren't mutual fund salesmen.I have met with several advisors. A lot of them have standard sales pitch but really are mutual fund salesmen. I do not trust them or their qualifications
Very frustrating
As mentioned earlier in this thread, I would highly recommend the advisor I mentioned earlier from Holliswealth of Mangrove Wealth Group:Good advisors exist. Even good mutual funds exist. You just have to do your homework.