Quote:
Originally Posted by Slava
...You don't have to deride my profession on your way to making that choice though.
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Slava, I was speaking only about my own experience with the investment advice industry; but I do see how it came out as an overall generalization. This was not my intent. I completely understand and accept that there are many good, honest and well-educated people working in this industry.
When I mentioned "undeservingly compensated", I meant compensation based on the value of assets under management, which is prevalent in the industry. This means a fee is charged regardless of the portfolio performance. I consider this method of compensation undeserved (and yes, I knew that "undeservingly" is not a proper word, I just couldn't find a better one).
The PH&N example was very meaningful (to me). I've invested a certain amount in in three funds and let it sit there for 15 years. As passive as you can get it. Just let the professionals do their job. And they didn't do a very good job. That was my experience.
Regarding knowledge: I am familiar with basic stock analysis and I understand the risk assessment at a decent technical level. I've visited quant rooms at some major trading outfits and saw the level of their analysis too to realize that my level is substantially lower. Yet, I do not believe these outfits had any better knowledge of any stock prognosis than you or me. They only had the better tools to trade more efficiently. I've had some investments that performed spectacularly well and I've lost all of my money on some others. I've had an adviser from a very reputable Calgary firm telling me and his other clients to buy Bre-X when it was going down hard at $4/share, because they
felt it was going to recover...
Anyway, my initial post was only a curiosity about how others are investing in their RRSPs.