31 Jan 2013 9 Comments
Financial Advisors 101: Get the Inside Scoop!
Ahhh… tis the season. RRSP season of course! I am sure many of you are getting calls from your friendly neighbourhood financial advisers wanting you to come in so you can have a chat about how your portfolio performed over the past year. The RRSP deadline is also coming up shortly, so you will want to make a lump-sum to fill up your RRSP. Heck, if you don’t have cash available, I’m sure they can arrange a loan as well! Boy, these advisers really have your best interest at heart, right?
Not necessarily. Shocking, I know. 
Check out my latest post over at Canadian Budget Binder about why you have to be on alert going into these meetings, and ultimately, how YOU are responsible for your financial health. There is also a couple great questions you can ask your adviser, and I would love to hear what their answers are!
Has your adviser ever told you that “there is no fee” for you to invest with them? Do you know how they are getting paid for their services?
Thanks for reading!
Jan 31, 2013 @ 12:22:46
The secret dark side of the Ninja wants to be a mutual fund dealer with Investors Group or Edward Jones. Ha! (joke). Maybe I’ll buy shares in IGM instead.
Cheers
Jan 31, 2013 @ 13:07:48
Tempting isn’t it? I remember when friends used to invite me to “investing” seminars, where you can make money selling investments! Or if you’re not interested, they’ll find you an adviser who can help you make money by investing in their products!
Jan 31, 2013 @ 15:04:48
Been to a couple of those seminars myself. So true isn’t it? If I can’t get you onboard can I sell you something instead?
Cheers
Feb 03, 2013 @ 14:02:40
I had a former colleague who, after realizing my interest in personal finance, would try to invite me every few months to an investment seminar that he attended regularly. I was concerned when his description of it was, “It *seems* like a pyramid scheme, but it really isn’t!”
Feb 03, 2013 @ 17:20:54
It REALLY isn’t.
Those seminars make me so mad, it is exactly like a pyramid scheme! 
Feb 05, 2013 @ 05:58:02
Even though I respect financial advisors, I don’t think I’d ever actually use one. I’m a do-it-yourself investor. There are just so many good books and blogs out there with real-results advice.
Feb 05, 2013 @ 11:25:32
I definitely agree! DIY is the way to go, but I think it is intimidating for many (if not most!) I just hope that if they are going to look for help through an advisor that they are fully aware of what they might be getting!
Thanks for dropping by!
Feb 06, 2013 @ 00:18:12
Great work there Vicky. Unlike My Money Design I don’t respect Financial advisers. In general it really depends, Some of them claim that they’ll do all these things. Like filing your taxes and such, well that’s nice but it is the client who can end up in jail if the tax forms that were submitted are grossly wrong. At the end of the day, these people aren’t even professionals, its a business and they need to turn enough to make money to live on.
If an adviser approaches youby be their client just ask them this one question, if you want me as your client then open me an account in Hong Kong or Singapore (your choice). Since Canada is a semi-closed market these so-called pro’s should know right off the bat that they can’t open an account in another country even if its with their firm that has offices over there. As an person I can open one and I don’t need to go there to do it.
Feb 06, 2013 @ 09:57:07
Hey Scrouge,
I think there are a lot of advisers who are not very good, but what about the ones who are designated and regulated? CFPs or CFAs even. What do you think about those?
I think there are some who are just not educated enough in respect to investing that they may benefit from a good advisor; say someone who believes day trading is ‘investing.’ Ultimately, I do believe that education is key, and it is everyone’s responsibility to take care of their finances themselves.