If you’ve considered getting a second opinion on your investments, and are wondering if it makes sense for you, you should ask yourself these questions. It is not uncommon to be uncertain on some or all of these answers. We offer a complimentary second opinion that examines your existing investments, fully discloses all of the costs you are paying, analyzes your portfolio performance and offers suitable recommendations. We also provide easy-to-understand answers to these questions, as well as any other questions you may have.
How are fees affecting my investment performance?
Depending on your type of account, various fees can be charged for buying, selling and holding investments. Some fees are easily visible, while some are often hidden. Do you know what fees you are paying, and do you know what you are getting in return? Do you know the fees (MERs) being charged by your mutual funds (typical MERs are 2.5% per annum). Do you know that you have options as to arranging the most advantageous fee structure for your situation?
Do you know what your Mutual Fund asset allocation is?
If you own several mutual funds, you will have a difficult time determining the answer because most mutual funds have such a large number of holdings. Quite often, people own mutual funds thinking that they are diversified, but after further analysis, the reality is that they suffer from mutual fund overlap, where several funds own the same underlying investments. This causes their portfolio to be too highly correlated, thereby limiting potential returns and not adequately protecting against risk.
When did you last review or rebalance your portfolio?
All too often, people establish an asset allocation plan at the beginning of a relationship with their advisor. However, as investments can fluctuate over time, people often have very different weightings relative to their initial plan. We do not believe that “buy and hold” means “buy and forget”. Active monitoring and rebalancing is critical. Is your portfolio still aligned to meet your goals? Are you tired of hearing the “buy and hold” story and the “you’re in it for the long-term” explanation?
Have you considered all of your investment options?
Mutual funds are an easy sell, that’s because you can walk into any bank or credit union, and be handed their wide array of mutual fund choices. Do you know why you are being recommended a certain investment? Are you aware of all of your investment alternatives?
Is your advisor licensed to sell more than just Mutual Funds and/or insurance products?
All too often, people think they are receiving financial “advice”, but they later find out that they were simply sold an investment product because their advisor was only licenced to sell a certain product, like mutual funds or an insurance product. Also, some firms pay their advisors incentives to sell their in-house/brand-name products, while some firms require their advisors to sell in-house products exclusively.
We are fully licenced and fully independent in our investment recommendations. While we may suggest a mutual fund or an insurance solution, we are licenced to recommend much more. Please visit our Services page.
Also, Canaccord Genuity does not create any financial products, and as such, we receive no additional incentive and are not encouraged to push one product over another.
Does your portfolio provide you with the right level of liquidity?
Suppose you are faced with an unexpected event, whether it is an illness or an unexpected life event. Do you have the ability to generate sufficient cash from your portfolio without worrying about selling during a market downturn? Are your mutual funds being purchased with a “back-end load” (i.e. redemption fees, note: we do not purchase back-end loaded mutual funds).
Do you have investments held at several institutions?
Do you own investments through a bank, a financial planner and perhaps a broker? Are you confused by the sheer volume of paperwork, statements, and the number of holdings? Are you wondering if your advisor and investments are working for you?
We offer an open-architecture consultative approach, designed to analyze your entire financial picture and provide you with a professional and easy-to-understand solution. To make your portfolio more efficient, you should also consider amalgamating all your investments with one fully licenced company. By doing this, you will consolidate your investments, reduce the amount of paperwork and statements you receive, simplify your life, and also, you will establish a deeper relationship with a fully equipped team of financial professionals who work hard to understand circumstances that affect your life.
We will fully reimburse you for all transfer costs. Additionally, you can transfer your assets “as is” (i.e. without selling them), which makes the decision to consolidate that much easier.
Will you transfer wealth to your beneficiaries the way you want?
People often put off estate planning because it involves thinking about their mortality*. But putting it off is not a sensible option. Responsible estate planning starts with having a valid will, but effective estate planning involves an open conversation with a trusted advisor. A properly designed estate plan is intended to maximize wealth during a lifetime, while minimizing probate fees and estate taxes upon death. It ensures that your wealth is dispersed according to your wishes.
Have you had a responsible conversation about your estate, and do you have the confidence knowing that your family will be looked after in the best way possible?
If you are unsure as to any of these points above, and would like to learn more, we encourage you to contact us and we would be happy to provide you with the information you need to make an informed decision.
* Offered through Canaccord Genuity Wealth & Estate Planning Services Ltd.