Investment Advice

[GrrlGoalie33]

My wife and I currently have money invested with a Financial Planner all in funds. The purpose of this investment is forced savings. We anticipate pulling money out of this investment once a year for a vacation.

With the current market outlook, would we be better putting this into something similar to a high interest savings account?

Because this is short-term investing, we want to make sure (as much as possible), that the money that we put in is there when we want to take it out (no loss).

TIA

[MarchHare]

I'm not a financial planner, so take any advice I give you with a huge grain of salt.

For short-term savings (vacations, a new car in a year or two, etc.), your best bet is almost always a high interest savings account (ING or whatever). Especially in the current economic conditions, I wouldn't put any money I wanted to use in the next 2-3 years into any kind of market fund.

For long-term (retirement) savings, the best practice is to go very high risk when you're young, switch to moderate risk when you're about 10-15 years away from retirement, then switch to low risk when you're 5-10 years from retirement.

[Table 5]

I agree ING is great...that is where i keep basically all of my cash that I dont need right away, but don't want to invest. It's easier to access than a GIC, and gives very similar rates for the most part. win-win.

[MoneyGuy]

I am a planner. MH is right. If this money is in long-term funds (equities or balanced funds) but if some is needed short-term, why are you in those funds? I'd recommend a high-interest account of some kind. I use Manulife Advantage and Altamira Cash Performer.

Why are you not asking these questions of your planner? That's why you've hired him/her. I don't mind answering your question, but I'd want my clients to ask me these questions.

[GrrlGoalie33]

Originally Posted by MoneyGuy

Why are you not asking these questions of your planner? That's why you've hired him/her. I don't mind answering your question, but I'd want my clients to ask me these questions.

Want to make sure that I'm headed in the right direction before I talk to him.

Thanks for the advice!

[macker]

Planners make very little commission on savings accounts. Maybe this is how you ended up in this type of savings vehicle. Time to park it and save the MER and commission and set up a savings account with ING, Manulife, Altamira etc. See link for more choices! In this case the middle man may not be doing his job!

http://www.canadianbusiness.com/my_m...ount/index.jsp

[MoneyGuy]

Originally Posted by Frankster

Want to make sure that I'm headed in the right direction before I talk to him.

Thanks for the advice!

Always glad to help. Getting people making good financial decisions is my mission in life, even Flames fans.

[Gobsgraham]

I don't know if I should start a new thread or just jump on this one since the original question is pretty much answered.

Is there such thing as an unbiased financial planner? I ask because I have not been happy with my FP and feel that everything they tell me is based on their commissions rather than what is best for my money.

[Slava]

Originally Posted by Gobsgraham

I don't know if I should start a new thread or just jump on this one since the original question is pretty much answered.

Is there such thing as an unbiased financial planner? I ask because I have not been happy with my FP and feel that everything they tell me is based on their commissions rather than what is best for my money.

Well I'm really going to bump this and hope that someone who has dealt with me rolls in here and says that I'm just such a planner!

FTR: I use both indexes and savings accounts as have been referenced in this thread. I don't always make the most money for myself off these vehicles, but I always act in the clients best interest.

As a further note, I have met moneyguy and would suggest to you that he is a very ethical planner as well, even if he cheers for the wrong hockey team in the province!

[Slava]

[quote=macker;1462181]Planners make very little commission on savings accounts. Maybe this is how you ended up in this type of savings vehicle. Time to park it and save the MER and commission and set up a savings account with ING, Manulife, Altamira etc. See link for more choices! In this case the middle man may not be doing his job!

http://www.canadianbusiness.com/my_m...jsp[/quote]

You should confirm these rates before you go to deposit. Depending on what exactly you're doing you can get as high as 3.45% in the right vehicle (not GIC's).

[troutman]

Originally Posted by Gobsgraham

I don't know if I should start a new thread or just jump on this one since the original question is pretty much answered.

Is there such thing as an unbiased financial planner? I ask because I have not been happy with my FP and feel that everything they tell me is based on their commissions rather than what is best for my money.

I think there are some very ethical planners, like Slava for example.

I think some planners will charge flat fees, instead of commissions? I think in many cases, there is a real conflict of interest, or potential for conflicts.

I think there will soon be a reckoning in this industry. I can't think of another industry where you can't tell how much the services are costing you, and how much your agent is making? IIRC, Australia was trying to introduce reforms to force financial planners to disclose more fully how they are compensated.

http://www.bankers.asn.au/Default.aspx?ArticleID=903

The FSR is intended to promote investor protection through improved conduct and disclosure requirements. The objective is to provide investors with confidence that those financial institutions that provide financial services and products are regulated and have appropriate training, competence, skill and integrity.

Disclosure requirements


In the main there are four key disclosure documents that financial services providers are generally required to issue to retail clients under FSR. These are:

• a financial services guide (FSG) which sets out the types of products and services the institution provides and the relationships it has with its representatives;
• a statement of advice (SoA) which is a record of personal advice provided to a customer. This document details the advice given, any commissions that are payable or receivable by the adviser or the adviser’s employers, and any other interests that might be capable of influencing the advice given;
• a product disclosure statement (PDS) that describes the main features of the financial product, any significant benefits or risks in holding the product, costs of the product, any investment return from the product, any significant taxation implications and any relevant commission arrangements that may affect an investor's return.
• a periodical statement of account.

[Slava]

^ You have some good points there trout. I do work on a fee basis (but it has to make sense for the client and myself in those cases), and also on commission. Planners are slowly disclosing more and more, which is a good thing.

[DementedReality]

Originally Posted by troutman

I think there are some very ethical planners, like Slava for example.

speaking from experience, I second the notion. nice guy too!

[Draug]

Originally Posted by Slava

Well I'm really going to bump this and hope that someone who has dealt with me rolls in here and says that I'm just such a planner!

FTR: I use both indexes and savings accounts as have been referenced in this thread. I don't always make the most money for myself off these vehicles, but I always act in the clients best interest.

As a further note, I have met moneyguy and would suggest to you that he is a very ethical planner as well, even if he cheers for the wrong hockey team in the province!

I can vouch for MoneyGuy. I've become a client of his in the past year. I trust that he is being honest, and suggesting to me what he thinks is in my best interest. He is willing to discuss different approaches to a given situation, and will answer questions honestly.

I cant personally vouch for Slava, but have seen no ill report of him. I'd also be comfortable being one of his clients if I didnt already have a financial planner.

[Gobsgraham]

Thanks for everyones help here. I will have to decide if the at source contributions are worth staying with my current FP company or if I should move on. I have probably read every financial post that MoneyGuy and Slava have posted on and will definitely consider this.

[MoneyGuy]

Originally Posted by Slava

As a further note, I have met moneyguy and would suggest to you that he is a very ethical planner as well, even if he cheers for the wrong hockey team in the province!

About Slava:

Originally Posted by DementedReality

speaking from experience, I second the notion. nice guy too!

Originally Posted by Draug

I can vouch for MoneyGuy. I've become a client of his in the past year. I trust that he is being honest, and suggesting to me what he thinks is in my best interest. He is willing to discuss different approaches to a given situation, and will answer questions honestly.

Gee, a mutual admiration society around here. Hugs all around. Slava and I know each other and I think he's good. Now if I could only get him on a motorcycle, then he'd be cool also. He's local to most of you; I'm not. Plus as an Oiler fan I'm not sure you guys would like me.