MoneyGal - thanks for the feedback. I've never met a dead horse that I didn't at least kick once more. I'll be dithering myself into retirement I think.
Your statement, "He won't be validating your plan" seems a little strong. The service I'd be paying for is a step above the guy just pushing mutual funds. I can't see him not offering an analysis of my plan and if he didn't I'd be walking. Hell, at least I have a plan. His work is mostly done. Just has to pick the right investments for/with me.
Ok I'll stop now. So what stocks should I buy after I read your Pensionize Your Nest Egg book?
Trust the opinions on this thread. I've met many people working with these advisers and they offer NO PLAN.
They pitch that they can secure higher returns, that's all. There is not detailed analysis on what you need to meet objectives, and whether the risk profile is warranted to get there. Maybe you don't need to invest in equities at all, could be the case if your savings rate is high enough, but these types won't look into this for you.
and remember that the $3750 is just the first year. Once he has you on autopilot, those fees just come rolling in every year for sharing with you what their stock analysts are recommending every week.
Lock-step with that point: index fund investing beats 85% of "active" portfolio management. (don't take my word - I'm paraphrasing John Bogle, Larry Swedroe, Rick Ferry... Warren Buffett - who all suggest the average investor index instead of actively managing)
Originally Posted by Sampson
Would you rather bet that the random advisor you found is going to be in the 15% that may do better but will likely do significantly worse than the market? I'll bet on the index.
Originally Posted by kcowan
Why not use a "fee-only" advisor instead? By that I mean a non-percentage based advisor who will instead charge you an hourly rate or a flat fee for a service, such as designing a plan.
A good one won't won't try to sell you on "beating the market." Their goal is to help you meet your financial goals.
If you're on this forum, you probably already have the interest and discipline to manage your own portfolio, once you have a plan in place. Consult a flat-fee advisor to help develop your plan and then do the work yourself.
Hey Jet, You have done an amazing job so for dont blow by not having confidence in your own ability. (trust in your eyes)
your best off to invest on your own & maybe use a credit union instead of a bank for making sure your not making any basic mistakes i.e., with taxes with RRSPs, maxing out TFSA etc.
Credit unions are owned by the members & unlike banks try to help thier members.
The majority lose money in the stock market & those that make money are almost always independent thinkers, that do thier own research & develope a method that gives them an edge, fits thier personality & have the disapline to follow the method. Most people should invest in the safest vechile possible & only risk 1-3% of thier portfolio in the stock market.
There is no way I would ever pay someone that works for money for advice on how to make money work for me in the market. I bet your doing better financially then the adviser your thinking of paying.
I have made more money in the stock market then I have ever made working for money & I will tell you it was not easy & there is no way I would ever risk more then 3% of my total portfolio in the market. If you have not done your own research to develope a method to play the market that gives you an edge dont play the market untill you do. Put your money in the safest vechile i.e., GIC with MAXA financial
Buying high dividend stocks is a myth right now. @ important lows the average PE is single digit & below the dividend yield which will be double digit. & the PE ratio of late is based on creative acounting
wish you the best in your investments & I think you can do better then paying someone high fees that will do a worse job then you can do.