Imagine (it’s easy if you try) a world where financial advice was priced by a competitive and efficient market in which everyone understood what they would get for what they paid. Now that would be a beautiful thing. One of our most controversial and commented-upon articles here at Y &T is our look at MER fees and the overall compensation model the investment industry encourages. Before I get onto my soapbox and talk about how Canada would look if I was made Czar of Financial Regulation for the day, I should preface my comments with the statement that I don’t think being an investment adviser makes you a bad person! Cue the usual *I’ve got several friends who are _________*. But seriously, I think a lot of investment advisors get into the industry because they want to help people in an area where there is a huge deficit of knowledge, and make a little money doing it. In my opinion, the main problems all revolve around the compensation models and the general structure of the financial industry. If you look through the comments of that the aforementioned article, you’ll see several investment advisors that are well-intentioned and bright individuals – this doesn’t mean using their services in the current context is a good idea however. As a side note, another of our popular articles here at Y & T revolves around real estate commissions. I find it humorous and interesting that real estate agents and investment advisers love to point out the flaws in each other’s compensation structure on a public forum. “Hey pot, have I introduced you to kettle?”
Why You Should Get Financial Advice From Somewhere
Before I get all negative and piss off the money caste that runs most peoples’ retirement savings accounts, let’s start with some of the reasons you should probably get some professional help with your financial life:
1) Statistically speaking, most people have no idea how to manage their own financial affairs, including credit, budgeting and an assortment of other personal finance basics.
2) For certain niche parts of personal finance such as writing wills, or making sure you’re at peak tax efficiency, it is often beneficial to enlist the help of a specialist. Continue Reading →