Quote:
Originally Posted by Cecil Terwilliger
Umm isn’t that what I said? Bank or firm makes no difference. Bad advisors give bad advice.
I didn’t say that at all. I said all other things being equal, money talks. Small firms have no advantage.
You clearly have never dealt with a high level private banking outfit at the big five. They put most small firms to shame.
Smaller firms can excel at certain things that give them advantages over big investment firms or the big five. But if what you say is true then those small firms are automatically bad when they get big because profits? Not sure what conclusion you’re trying to draw here.
And? This is common in any industry and usually is because successful people don’t want their commissions going to their employer when they could keep it for themselves, so they open up their own shop. Usually it involves years of experience, capital and an established client base. Does that mean they were bad advisors with the banks but good advisors when they went private? Your reasoning makes no sense.
It appears your argument is that your small firm is better than big banks. Sure. But that means nothing in the bigger picture. Some of the worst advisors I’ve met were from the big five and others ran their own shop. You’re drawing conclusions not found in evidence.
Your suggestion small firms are less likely to do it for the money or are less likely to push more profitable products has no real supporting evidence.
With so much bias and misinformation it is no surprise people want to do it themselves and companies like questrade are making a killing. It’s an industry fraught with advisors who overvalue their services and less than honest business practices.
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Wow. There is so much wrong with this post, I don't know where to begin. Every single conclusion you drew from my post was wrong.
To the bold, lol. I have been in the industry for over 30 years, with every type of firm, large and small. I own a wealth management firm now, and I am more than a little familiar with 'high level private banking at the big 5', thank you.
I rarely get into discussions here about wealth management because it's just pointless. You have proven that again.
I will say one thing for others reading this: the difference between banks and other firms (not all firms, you have to do your research) comes down to proprietary products vs pure independence.
Ideally, you want a pure fiduciary (someone who is not paid for what they sell, and works for a single fee). Some of the better advisors at the banks will tell you that they don't sell proprietary products, but they are highly motivated to, and are judged by their superiors to do so, so it will always creep into the equation for them.