Anyone switch their financial/wealth planner from a bank to an independent?

[Powpow]

Hello folks

I've been with one of the big canadian banks for wealth management for nearly two decades. I don't have any particularly big complaints but I'm pretty sure whatever I've done has been pretty conservative and almost 'cut and paste' with others who have a similar profile as me. I've been approached by people who just give me a bad feeling in my stomach. I've asked my social circle and have had some intros but then I'm not particularly fond of using the same people as my friends.

Has anyone not gone with a bank? And if so, how did you find your advisor? As I research, would love if anyone could share their experience or lessons learned. What to look for, what questions to ask, what to avoid etc.

Thanks

 

[Chaka Khan]

If you are comfortable with opening a direct investing account with a big bank, you could buy index ETFs yourself and save money on advisor fees.

 

[Harveyspector]

Hello folks

I've been with one of the big canadian banks for wealth management for nearly two decades. I don't have any particularly big complaints but I'm pretty sure whatever I've done has been pretty conservative and almost 'cut and paste' with others who have a similar profile as me. I've been approached by people who just give me a bad feeling in my stomach. I've asked my social circle and have had some intros but then I'm not particularly fond of using the same people as my friends.

Has anyone not gone with a bank? And if so, how did you find your advisor? As I research, would love if anyone could share their experience or lessons learned. What to look for, what questions to ask, what to avoid etc.

Thanks

My family has dealt with an investment advisory team….under the umbrella of a bank…they consistently beat the index for a given level of risk. Would be glad to provide details if you private message me.

 

[angrymime666]

the issue I have with any company selling products is their mers cut into the growth of my investment.

I was going to look into fee for investment strategies. they dont sell their product or any and just model based upon your financial needs and level of risk. they are pricey, around 2500 - 3500 per assessment. they will advise you on your current portfolio, suggest changes, model tax efficient plans(when to take cpp, wealth structuring).

if any of the BM have experienced fee based financial planning I would be interested in your opinion.

 

[csmitting]

Hello folks

I've been with one of the big canadian banks for wealth management for nearly two decades. I don't have any particularly big complaints but I'm pretty sure whatever I've done has been pretty conservative and almost 'cut and paste' with others who have a similar profile as me. I've been approached by people who just give me a bad feeling in my stomach. I've asked my social circle and have had some intros but then I'm not particularly fond of using the same people as my friends.

Has anyone not gone with a bank? And if so, how did you find your advisor? As I research, would love if anyone could share their experience or lessons learned. What to look for, what questions to ask, what to avoid etc.

Thanks

Do you just deal with someone that works in your local branch or do you have an investment advisor that you deal with?

 

[Powpow]

If you are comfortable with opening a direct investing account with a big bank, you could buy index ETFs yourself and save money on advisor fees.

I’ve got one and a i toy with it but I can’t really do it myself . Combination of lack of time, interest and knowing my own self which tends to get excited about stupid shit and get “gut feelings”. Need my core money and investments to be protected from my own damn self.

 

[Powpow]

My family has dealt with an investment advisory team….under the umbrella of a bank…they consistently beat the index for a given level of risk. Would be glad to provide details if you private message me.

thanks for the offer.

My advisory team consistently beats the index too. But I think it’s important for me to try to diversify away from a bank.

 

[Powpow]

the issue I have with any company selling products is their mers cut into the growth of my investment.

I was going to look into fee for investment strategies. they dont sell their product or any and just model based upon your financial needs and level of risk. they are pricey, around 2500 - 3500 per assessment. they will advise you on your current portfolio, suggest changes, model tax efficient plans(when to take cpp, wealth structuring).

if any of the BM have experienced fee based financial planning I would be interested in your opinion.

This is something I have not considered. Something to think about. Thanks.

 

[Powpow]

Do you just deal with someone that works in your local branch or do you have an investment advisor that you deal with?

years ago it was a dude in the branch.

then I grew and that dude grew. I had no reason to not like what he was doing so stayed.

And he moved on to something else and him and the bank introduced me to someone else that was part of their Wealth organization.

each of the banks will have a wealth group that has a certain clip rate you need to have in terms of investment dollars available to you before you get assigned someone to work with. Otherwise you are with a person in the branch.

 

[csmitting]

years ago it was a dude in the branch.

then I grew and that dude grew. I had no reason to not like what he was doing so stayed.

And he moved on to something else and him and the bank introduced me to someone else that was part of their Wealth organization.

each of the banks will have a wealth group that has a certain clip rate you need to have in terms of investment dollars available to you before you get assigned someone to work with. Otherwise you are with a person in the branch.

So you have an investment advisor. Got it.

investment advisor at the bank or say Cannacord, Richardson, Leede etc are all pretty much the same. The Indy guy might be slightly easier to get on the phone.

They all fall into two general categories deal guys and fee based financial planners. (I’m generalizing, don’t anyone get your panties in a twist and say you can be commission blah blah). The banks favour the fee based balanced asset accumulation guys. The smaller independents will favour the deal flow more (better margin’s especially if you don’t have the scale the banks do).

Bank/Indy advisor will have an investment pattern they stick to. If your investment pattern doesn’t line up with their’s, they will push you to do their’s. The dealer they work at is immaterial.

regardless of where you transfers to, the new guy will tell you the current guy sucks, and that nearly everything you have needs to be sold and replaced for a fee, and/or put you on a recurring fee platform. The current guy will try to convince you to stay or try to find a way to charge you going out the door.

Basically Bank vs Indy same shit different pile.

 

[Powpow]

So you have an investment advisor. Got it.

investment advisor at the bank or say Cannacord, Richardson, Leede etc are all pretty much the same. The Indy guy might be slightly easier to get on the phone.

They all fall into two general categories deal guys and fee based financial planners. (I’m generalizing, don’t anyone get your panties in a twist and say you can be commission blah blah). The banks favour the fee based balanced asset accumulation guys. The smaller independents will favour the deal flow more (better margin’s especially if you don’t have the scale the banks do).

Bank/Indy advisor will have an investment pattern they stick to. If your investment pattern doesn’t line up with their’s, they will push you to do their’s. The dealer they work at is immaterial.

regardless of where you transfers to, the new guy will tell you the current guy sucks, and that nearly everything you have needs to be sold and replaced for a fee, and/or put you on a recurring fee platform. The current guy will try to convince you to stay or try to find a way to charge you going out the door.

Basically Bank vs Indy same shit different pile.

Thank you for your thoughts and point of view. I long suspected that there was a pattern or playbook that some people stuck to. I just couldn’t engage in any meaningful conversations about trends in the world without it sounding like a dismissal and sound bite answer and then re-hash old advice.

i might just take the advice I got here which ia to go self managed for at least a larger portion.

thank you once again for confirming my suspicions

 

[Carvher]

thanks for the offer.

My advisory team consistently beats the index too. But I think it’s important for me to try to diversify away from a bank.

Just curious. What index are you refering to?

 

[csmitting]

Thank you for your thoughts and point of view. I long suspected that there was a pattern or playbook that some people stuck to. I just couldn’t engage in any meaningful conversations about trends in the world without it sounding like a dismissal and sound bite answer and then re-hash old advice.

i might just take the advice I got here which ia to go self managed for at least a larger portion.

thank you once again for confirming my suspicions

Everyone repeats their patterns. It’s more pronounced with investment advisors. Not only will all the client accounts have the same set of securities, the client NCAFs are the same too. Funny that, their clients all have near identical investment objectives and risk tolerances.

Self directed has less product availability. In particular new issues, and fixed income. No value added on mutual funds in self-directed accounts (Even with rules changes that requires them to use trailer free series)

if your sticking with index ETF and stocks, option and even futures, self directed can be a really good option.

My suggestion is don’t go with the cheapest option. You do get what you pay for. I would stick to a bankowned discount broker, myself.

 

[sprite09]

Thank you for your thoughts and point of view. I long suspected that there was a pattern or playbook that some people stuck to. I just couldn’t engage in any meaningful conversations about trends in the world without it sounding like a dismissal and sound bite answer and then re-hash old advice.

i might just take the advice I got here which ia to go self managed for at least a larger portion.

thank you once again for confirming my suspicions

Just curious. What index are you refering to?

wondering the same ...and another person pointed their team also consistently beat the index.

I anxiously wait who these guys are

 

[John_Jacob]

IF the index referred to as consistently (>10 years) beating is the TSX or S&P500, FFS stay with them. This is rare. Way more than 2/3rds of managers cannot.

If it’s some pseudo index, yawn, doesn’t matter.

 

[K Douglas]

I've used an individual financial planner for my retirement savings accounts since my late teens. Overall I think he's done better than what I would have gotten at the bank but I can't say that I'm overly thrilled with his performance. Other than in 2020 and 2021 when my portfolio went up by about 40%. Lost 17% in 2022 however.

 

[ez$$$]

Financial Planners and/or Investment Advsiors can be helpful regardless of whether they are bank employed or independent.

It is more about meeting with individiual and if you are comfortable with their approach and feel that the fee/expenses you are paying are fair.

If I was using one, i would be pretty indifferent as to whether they are bank or independent because the bank people should also be able to choose different investments and are not restricted to bank/proprietary products if they are from the wealth management division (RBC Dominion Securities, ScotiaMcLeod, BMO Nesbitt Burns, TD Asset Management, CIBC Wood Gundy). There may be some restrictions regarding mutual funds, GIC's and money market products but both the banks and independents should be able to buy stocks, bonds, etf's, IPO'S and alternatives.

Many of them use model portfolio's and outsource the investment decision making to their in-house investment team and focus most of their time on financial planning, client meetings and business development.

As long as you are fine with their business model and feel the fee/expense is fair, i would be pretty indifferent as to which firm they are from.

They may be helpful with certain tax deferral/minimization strategies, attribution rules, estate considerations and setting up trusts so if you have some substantial wealth and/or complex planning needs, it may be worthwhile.

I personally go for the self-directed approach as i have a company pension and just trade some ETF's and mutual funds in my own registered and investment account.

Also, i like to dabble in options and a lot of planners and advisors are not options licensed or are philosophically opposed. While i agree with the adage that "it is about time in market rather than timing the market", options can be used strategically regardless of your investment philosophy.

 

[Powpow]

wondering the same ...and another person pointed their team also consistently beat the index.

I anxiously wait who these guys are

@Carvher and @sprite09 -> Sorry for late reply. I tend to login in when I have I'm planning some fun, and sometimes that doesn't happen for a few days or weeks at a time. I benchmarked performance based on S&P500 and Vanguard. Like I said, I'm pretty happy with what's happened. I just can't quite shake the feeling I need to do something different in the upcoming economic climate.

 

[Powpow]

IF the index referred to as consistently (>10 years) beating is the TSX or S&P500, FFS stay with them. This is rare. Way more than 2/3rds of managers cannot.

If it’s some pseudo index, yawn, doesn’t matter.

I did NOT know over 2/3rds of managers couldn't do that. This put my situation in a slightly different light. I'm happy with what's happened over the years. Just trying to think if I need to do something drastically different for the upcoming few years. Maybe I'm rat holing too much on podcasts and conspiracy theories, but i feel the upcoming world is changing which means I should do something different.

 

[Powpow]

Financial Planners and/or Investment Advsiors can be helpful regardless of whether they are bank employed or independent.

It is more about meeting with individiual and if you are comfortable with their approach and feel that the fee/expenses you are paying are fair.

If I was using one, i would be pretty indifferent as to whether they are bank or independent because the bank people should also be able to choose different investments and are not restricted to bank/proprietary products if they are from the wealth management division (RBC Dominion Securities, ScotiaMcLeod, BMO Nesbitt Burns, TD Asset Management, CIBC Wood Gundy). There may be some restrictions regarding mutual funds, GIC's and money market products but both the banks and independents should be able to buy stocks, bonds, etf's, IPO'S and alternatives.

Many of them use model portfolio's and outsource the investment decision making to their in-house investment team and focus most of their time on financial planning, client meetings and business development.

As long as you are fine with their business model and feel the fee/expense is fair, i would be pretty indifferent as to which firm they are from.

They may be helpful with certain tax deferral/minimization strategies, attribution rules, estate considerations and setting up trusts so if you have some substantial wealth and/or complex planning needs, it may be worthwhile.

I personally go for the self-directed approach as i have a company pension and just trade some ETF's and mutual funds in my own registered and investment account.

Also, i like to dabble in options and a lot of planners and advisors are not options licensed or are philosophically opposed. While i agree with the adage that "it is about time in market rather than timing the market", options can be used strategically regardless of your investment philosophy.

Thanks for your point of view. This is helpful at settling down some things in my head. Thank you.