do you have a financial adviser?

posted 3 years ago in Money
Post # 3
24473 posts
Honey Beekeeper
  • Wedding: June 2009

We don’t have one but I love to read personal finance stuff so I don’t feel like I need it. If you go to one, choose one that makes their income off a straight fee per visit and not commissions. You shouldn’t need a minimum income for the good ones.

Post # 4
2696 posts
Sugar bee
  • Wedding: June 2012

I have one…and I work for them 🙂

In our business, there is no cost for their service. They provide life insurance, investment products, etc which DO cost money, but their general services and advice do not cost money.

I had 0 knowledge of RRSP’s, life insurance, RESP’s, other investments, etc, before I started working for my boss/advisor. I think it has been very beneficial to have somone guiding me along the way.

Just keep yourself informed and ASK QUESTIONS. Protect yourself, and if something seems off, don’t go with it.

Post # 5
6566 posts
Bee Keeper
  • Wedding: June 2013

We don’t have one but we both do quite a bit of research so I don’t feel we have a need for one. My dad also has quite a bit of financial experience and he likes to throw advice at us.

Post # 6
1194 posts
Bumble bee
  • Wedding: June 2014

I have one. I honestly don’t know much about them. My parents got set up with them years ago to better manage their money and I just kind of got included along the way. Basically, they invest all my money for me and move stuff around when they need to. If I see a stock I want to buy, I call and ask. If I need some extra spending money, I call and ask. They transfer money into my IRA for me, they do my taxes for me. I pay them some amount I don’t know out of the money they hold. As I’m typing this I realize just how ignorant about the whole thing I really am.

Post # 7
11772 posts
Sugar Beekeeper
  • Wedding: May 2013

Unless you have a background in business or accounting, I think EVERYONE shoud have one!

Post # 9
1327 posts
Bumble bee

I work in a brokerage and my bosses in particular are very high-end advisors who specialize in working with HNW/UHNW (high net-worth and ultra high net-worth) individuals, families, and institutions.  Generally, you don’t need a minimum salary for one, but many advisors (especially the established ones) are especially or only interested in potential clients with a certain amount of investible assets.  The amount varies and is unofficial; if you’re related and/or referred by a super important and huge client but you don’t have that amount, an IA may want to serve you anyway.

If you’re concerned about not meeting certain minimums, I’d say to go for an IA that’s trying to establish his/her career and building clientele – you’ll probably also get more personalized service. A good place to start is to ask around among your friends and families.  References = preferred business and those loose, unwritten rules matter much less.

I think an advisor is worth it if you’re super busy, don’t have time to manage your own investments, and/or you’re not familiar with investing.  It’s important to be realistic though, and to have a good general understanding of the markets now when looking at your results during portfolio reviews (e.g. the markets are very unstable right now so anything can happen, but things aren’t as awful as 5 years ago). 

Have a clear goal in mind – are you trying to grow your assets or are you just looking to safeguard your money against inflation?  If you’re looking for growth, understand that there are risks – the more aggressively you want your money to grow, the bigger the risks.  If you’re looking for inflation protection, you may want to aim for perhaps a 2-5% growth in a year – depends on your advisor. 

Just make sure your adisor has solid credentials, experience, and that they are trustworthy (the last one is why I say to ask around for a referral to one). 

There are a lot of services available – you’ll have more options if you go for a bank-owned institution, but brokerages that focus on investments only are good, too.  In bank-owned firms, you can expect services like planning for the future (retirement funds, establishing trust funds for your dependents, or even trusts for charities that mean a lot to you), investment solutions for more short term goals, tax planning, insurance services, business ownership planning (like if you want to sell or pass your business on one day), etc.!

Hope this was at least somewhat helpful. 🙂

Post # 11
10521 posts
Sugar Beekeeper
  • Wedding: January 2011

I had one to buy MFs before.  I wasn’t too concerned about the MERs at the time, as it wasn’t a huge amount of money, and it wasn’t going to be super long-term.  I also opened e-series MFs, so the MER was lower, but I’m still paying someone out there a fee.

Canadians pay some of the highest fees 🙁

DH’s RRSP account is managed through his employer.

Once my savings get built up to a certain level again, I plan a DIY approach, especially since Questrade does ETF purchases for free now!  Yay!!!

I’ll probably end up using a future employer’s RRSP plan as well.

In the future, I might consider a fee-only advisor, but don’t feel like it’s worth it for my current net-worth.

Post # 12
7304 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

We do. We sort of “inherited” him and he handles all of our non-retirement investments. Our advisor has a $500k minimum to take on a client; however he has waived that for us due to the history of the relationship. He told us that his goal is to be our advisor for life, to be the one who takes over our 401ks when we retire, and essentially grow us into a $500k+ portfolio. He helped us identify savings targets for each of our goals and the path we need to be on to meet those targets, from amounts to deposit to funds/investments that will best maximize those deposits depending on the risk tolerance related to each goal. We have a marriage, a home, a kid, careers, pets, and our health to focus on, so it’s good to know that our advisor is there to focus on our investments.

Post # 14
10521 posts
Sugar Beekeeper
  • Wedding: January 2011

When looking for an advisor, I think one of the most important things is to find someone who has your best interests in mind, and not a company’s.  Unless you specifically have something in mind that you want and need a salesperson to complete the transaction – like a specific product at a bank.  While the people at a bank can be called financial advisors, I don’t really think of them as such, they are salespeople.

Post # 15
3280 posts
Sugar bee
  • Wedding: June 2014

FI and I have one. Even though we’re only 20 and 22, we thought it was important after buying our house to have an advisor. We don’t pay a fee, just pay for the services we need such as life insurance, investments, etc. He’s helped us plan retirement and kid’s college funds while we’re both still in college! I think it’s given us an excellent head start for our financial future. 

Post # 16
655 posts
Busy bee
  • Wedding: June 2013

@amandasouthcarolina:  We have one.  I like him.  He’s been in the business for over 40 years and I know him personally so I trust him.  He also has a mindset for investing similar to ours (more conservative vs risky).  We don’t pay him a fee, he makes commission off our investments, however I have no idea what that amounts to.  To be honest, I’m content with that set up because if I had to pay a fee each time he visited I wouldn’t have signed up.  This way I know I’m making money, so what he makes off my money is irrelevant to me.  I wouldn’t have done investments on my own because I have little interest in managing them myself, so to me it’s worth it.

I have a line of credit through him (well, the company he works for’s bank – which happens to be my bank anyway), life insurance, along with the regular RRSP set up and shorter term savings accounts.

I’d recommend a financial advisor (as long as you choose a good one) if you have little desire to do any investing/managing your investments on your own.

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