What happens when someone with trust issues regarding advisers decides they need help with their investments?
In some cases, they write to me for reassurance that they will be properly looked after by an adviser. Here’s the latest: “Now that we are both retired, the management of our funds is more complex, and while I do need support, I feel quite apprehensive to trust our hard-saved retirement funds to someone who in the end has to answer to their own company/managers,” a reader writes. “Is there some advice that you can offer to help provide reassurance on using financial advisers?”
Here’s some advice on finding good advice: prepare for a slog in finding an effective and trustworthy adviser, but expect to be rewarded when you find someone suitable. Good advisers are out there. I’ve met them face to face. I’ve interviewed them and quoted them in columns because they are knowledgeable, ethical and personable.
This reader has had a few different advisers over the years but never felt comfortable enough with any of them to hand over all her investments. Now, as a retiree, she wants to consolidate everything with one person who will protect the retirement money she and her spouse have saved.
A plan for finding the right person: build a list of potential advisers and then interview them to see if they’re the right fit. Find advisers by talking to friends and family to see if they have an adviser they would recommend. Also try a directory of financial planners, advisers and coaches put together by financial blogger John Robertson. Note: some people on this list do planning only, while others additionally provide portfolio management services.
Key questions to ask in interviewing prospective advisers:
Do you provide the specific services I need, such as a strategy for converting retirement savings into income, as well as tax and estate planning?
What kind of investment products do you use?
Based on my preferred risk level, how in general terms would you build a portfolio for me?
How would you protect my portfolio against a stock market correction, recession, inflation and other risks?
How many clients do you have who are similar to me, and what services are you providing for them?
Is my portfolio of sufficient size to enable you to provide the services I want?
What are your fees, in both percentage and dollar terms as applied to my situation?
What accreditation do you have as an adviser, and how long have you been in the business?
A few years ago, I put together a checklist to help assess whether people are getting value from their advisers. It may help inspire some questions to ask prospective advisers.
There are lots of reasons why a relationship with an adviser doesn’t work out for clients. One of them, let’s face it, is that they didn’t put enough work into finding the right adviser. Don’t settle for someone. Keep slogging.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
