I could see that there would be times they could bring you interesting investing opportunities about which you would otherwise not know.

For the great majority of people, investing is a concept that is hard to master and thus they place a great deal of trust in people with letters after their name. The trust may not always be well placed, but without basic education of financial management, how does one know what one doesn’t know?

I partially agree here, but the question I have to ask is – are you willing to pay for your investment advice? Advisors can either charge a commission, or go fee-for-service, and most Canadians are unaccustomed to paying either out of pocket or from fees collected on their investments. The FFS route is a difficult one for some advisors, as they need to make a living, and clients are often uncomfortable being the party who cuts the cheque.

CEO –Chief Embezzlement Officer.
CFO — Corporate Fraud Officer.
VALUE INVESTING — The art of buying low and selling lower.
P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.
BROKER — What my financial advisor has made me.
STANDARD & POOR — Your life in a nutshell.
STOCK ANALYST — Idiot who just downgraded your stock.
FINANCIAL PLANNER — A guy whose phone has been disconnected.
MARKET CORRECTION — The day after you buy stocks.
CASH FLOW– The movement your money makes as it disappears down the toilet.
INSTITUTIONAL INVESTOR — Former investor who’s now locked up in a nuthouse.

I think the western society trend of hyper-processing things for instant gratification has converted the whole ‘investing’ concept into a white-color casino. A casino where people even charge you to enter the premises… set-up fees, transaction fees, admin fees, and then add insult to injury with fee fees (Taxes) if you do manage to squeak out a profit…

…think about it, do we really know what is underpinning a so called blue chip company anymore? Have we ever truly been told the facts without bias?

I can hardly believe there are so many sheep roaming this planet pretending they understand those fine print documents they sign…

It’s easy to talk a big game but when it’s time to put your money where your mouth is, some people will procrastinate or stress-out under the pressure. Would love to take over all my investments but at what sacrifice?

Mike

P.S. There seems to be a real need for hourly fee planners to assist those DIY who require a shoulder to lean on when questions arise. Could be nice niche market for someone with qualifications? Just saying…

Please realize that it is a “Relationship”. Just like a spouse, a friend, a business partner, etc. if the relationship doesn’t work, why are you still there? But on the flip side, why isn’t the consumer asking questions? You just buy a car because the salesman said so? How about a house?

A lot of people laugh and put down banks, but it is the place to start. No fees (except MER’s), convenient, no back end fees, no lock in commitment (unless you purchase a non-redeemable GIC), etc.

After that, just educate yourself. Dummies books are a great place to start or this web site :)

FP’s are salespeople. They are making a living. And just like anything else in life, there are good and bad.

I started with a bank. RBC’s Balanced Fund. Started my RIP at $7.89 a unit (its trading at around $11.20 now). I have seen my shares of idiots over the years, but I realized a long time ago, I am in charge here. If I don’t like what you are selling me, I’m out of here.

I now have a DRIP portfolio and purchase ETF shares from Shareowners on a quarterly basis.

Simply put, stop blaming the other guy. It’s your money.

High fees are wealth destroyers but do not expect our govt to do anything about it when they collect GST on these fees whether or not it is in an RRSP.

So I am more of the persuasion that a person should educate themselves. But I do like the idea of a Fee Only advisor. That way there is more of a chance that the advice is not biased.

I’m seriously considering hiring a fee-only financial advisor since I agree with the concerns raised here about the motivations of commission-based advisors. Has anyone used the services of E.E.S. Financial Services Ltd. (http://www.ees-financial.com/)? They appear to be a true fee-only operation and have been around since 1968. Are there any other fee-only financial advisors you would recommend?

There are those who work for investment companies – those you have to be a bit careful of.

And then there are those who are Financial Planners who are Financial Advisors and they help you to invest and manage your money and get paid on for that job – but they don’t make money off of selling an investment product.

Some brokers started that proactive. They charge an annual management fee instead of commissions and that theoretically should solve this problem.

I run an investing site that’s primarily focused on education. No commissions, no fees, no costs (ok, I sell a book, but no one has to buy it). If you want to learn how options can reduce investment risk, take a look around.

However certain jurisdictions do have such courses, no?

Then again, maybe it’s better to have this stuff taught within the family. My family taught me very little about finances (they still don’t want to talk about it) and being the horrible student I was I doubt I would have paid attention in Personal Finance 101! However my wife’s family has a strong tradition of teaching basic finance issues within their culture (she’s Chinese) and not only was she forced to learn herself as a girl (she has done well as a result) she has also taught me a lot along the way that I have no doubt we will pass on to our kids.

I use IG as well, but have been very pleased so far. I have a good advisor (was “referred” by my parents, so there is a long-term relationship there) and haven’t had any problems.

I have a question, I email him and he responds quickly.,