Caution, you may end up getting what you paid for
With the race to zero going on among fund managers, ETF providers and financial advisors as they cut their fees to gain more business, the old adage of “you get what you pay for”, is becoming more and more of a reality.
Investing should not be about beating an index. It’s about building and managing a portfolio to meet reasonable objectives that take time, planning and money to accomplish. The questions you have to ask yourself are, “Does the individual or institution providing this service to me today care enough to ask about my goals and take the time to truly understand them? Are they in a conflict of interest in terms of the products and services they offer or how they are paid for helping me to meet my goals?”
The other day, I came across an article in the Financial Post written by Martin Pelletier, CFA, Portfolio Manager and OCIO at Trivest Wealth Counsel Ltd. that resonated with me and reinforces why we recently changed the name of our practice to Family Wealth Counsel Advisory Group.
The article is not focused so much on how best to serve wealthy families as it is on the best practices that should be available to everyone. These fundamental principles are predicated on the fiduciary duty of serving the best interests of our clients.
The article notes that “Only 4,076 persons in all of Canada are registered in the categories involving a true fiduciary responsibility, as compared with 118,126 financial salespeople, or dealing representatives, ….”
So the next time you talk to your advisor or interview someone in the financial services industry to help you with your financial goals, ask them what business model they follow.
To read the full article, follow:
David J. Angas
Senior Vice President, Financial Advisor
Family Wealth Counsel Advisor Group/Raymond James Ltd.
Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, David Angas, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.
