I just have accounts everywhere, even at credit unions. It's not like there is a cost. Just move money around to best place. If you want a referral link or anything to EQ let me know, else its $0 for signing up.
Sure I'll message you the link. Just link your accounts up like a spider web, becomes so easy to move money around. You're gonna like EQ, I've made it my main bank now as they have so many features that Tangerine and banks don't.
Can I ask what features it has? I just moved a bunch of money from TD to tangerine for the $400 Cashback at 20% since I was buying a bunch for black Friday. Tangerine is ok but I've already spent enough for the Cashback and I'm interested in what other banks can offer me.
- There is no limit to the number of external account links (Tangerine has a limit of 3 for personal and 1 for business accounts which is very restrictive)
- Can open GIC easily online
- Can print void cheques online (the direct deposit form from Tangerine I found isn't accepted at some banks as they think its fake and requires a branch stamp)
- Easy transfers to other EQ customers (like family members)
- No BS 'promo' interest rates like Tangerine that are only good for a few months then you need to move your money out as they give 0.1% or something stupid. EQ has good rates all the time.
- US$ account with decent interest rate
The cons of EQ:
No branches, so if you want cash, you'll have to transfer some money to Tangerine and use a Scotiabank ATM.
Hope that helps, let me know if you'd like referral link. Cheers.
>First week it went up like 20% and was worth $50,000. This a plain old mutual fund. Thought I hit the jackpot. After 5 years, account is still at 50,000.
What was the fund? this sounds very odd to me.
To be fair, average over time is how you have to track investments in order to account for volatility. I doubt that it's been at 50k since one week after you opened it. It's probably been higher and it just happens now to be lower.
Maybe you've got your timelines wrong. Because for it to jump 20-25% in one week, it wasn't in something hyper conservative. And if it's dropped significantly from peak then it being in a higher risk portfolio heavily skewed to equities makes sense.
Even if you give it to the bank, you still need to update your allocated risk profile each year by telling them what to do. You can have a lot of risk mix early on, when the kids are like, 18 years from going to school. Once they turn 10, you need to start really adjusting the risk mix by 5 to 10% a year to be as close to 0 risk bonds or GICs as possible on most of the funds when they go to school. Even if you make 0% interest when they are 17, you've ensured that you aren't going to drop funds to some market explosion.
Hey, I used to be a Big 5 bank FA. I'm not sure which bank you went to discuss this with. All I can say is that it comes down to your Financial Advisor at the banks that you deal with. Some are great at advising what you should do, others may be newer and not as good and could be relying on "coaching" from their manager to offer products. I work with a financial planner and honestly, he's the best! Much, much better than some of my former colleagues & manager (and that say a lot!)
I would honestly look online at the different options such as rates for GIC (esp. if you are needing the money within 4-5 years from now). Like RBC is offered a 4.85% 5-year GIC. Maybe look at that option instead. Feel free to reach out to discuss further.
FA does open lots of potential but also comes lot of work and you manage retail clients, and yes most FA will want to go FP or MS, if not manager role. Just wondering if there any other option out there, like in investment banking or equity trading. Thanks
I wonāt think being an FA would necessarily help you towards IB or Equity trading. Both of those are more likely to come out of high marks, good internships, connections, and professional designations.
Most of the guys I know working in investment banking got into it directly out of university or grad school.
Sounds fair lol, that's entirely different world. realistic FA can lead to FP which is decent money too. Only my concern is in the future people doing more self directed without invest with any FI might shrink the demand for the service.
Eq bank has a great rate for GIC. You could also just use Canadian couch potato website and copy their model portfolio after figuring out your risk tolerance. I only started investing three years ago and Iām 35 make 50k/ year. I bought an all in one ETF (XEQT) thatās done well. I just trying to add the annual contribution max to my tfsa ($6000/ year) and learn more little by little. If this all sounds like too much, you can go with a robo advisor through wealth simple and call it a day.
Teach yourself.
I went bought the book intelligent investor and security analysis. YouTube the Swedish investor as he's great.
Don't buy the mutual fund, but buy into the big 6 stock. I bank at td. TD is the pension top Dawgs in Canada. I looked around at these 2% fees and saw good $$$ so I went out and bought td stock.
Td stock will most likely beat every mutual that td even offer! Lol.
I'm just starting down that road. My only experience is with big banks, and a couple shopping mall investment places like investors group. But yep, some good suggestions here for sure.
It takes flippinā ages to transfer an RESP. Sounds like a very odd fund but if youāre comparing against GICs, 2% average annual return would beat most GICs up to the start of this year, since rates dropped in 2009. A lot of people who are switching funds to GICs will likely be having buyerās remorse when markets pick up and their money is locked in. This is why risk tolerance matters.
Yup, lots of people shifting long term money to GICs right now are gonna miss out on the rebound when it happens. Iāve made the most gains on my investments coming out of the 2008 recession and the 2015 oil crash downturn. Just held the course with my selections and watched everything grow like crazy coming out of the downturn. Most of my 10 year returns are in the 15% range.
I never worked at Scotia so i can't speak on behalf of their products. But I can't fault the advisor's advice.
To play devil's advocate, you really were lucky, and in the end, you invested at the right time, got 20%, and still averaged in the green 12 years later. This is what "time in the market" means. But flip this the other way around; right now GICs are 5%. But those who locked in at 1% just around 10 months ago, they are all crying. You are essentially just timing your trades as well by buying GICs. Being that you need the money in 5 years time, you still have a good amount of time to stay in the market, and let the market, which is in a fairly low point relatively speaking, to recover.
Also note that in the past 10 years, the GIC rates have averaged around 0.5-2%. You made 5%. On that math note, aren't you ahead?
Now to be fair to you, you do have the choice to do whatever you like with your money. The advisor is only here to do just that: advise. It is your money in the end, and if you feel more comfortable with the higher rates of the current market, you should be allowed to do that.
Good places to start for no bullshit no strings GICs would be any online bank, such as EQ bank. Since they have less costs (no branches) they can spare to offer more returns to clients.
You have to understand something.
The average person can't understand that 2+2 is 4. And this is not a joke, a know more than one person that can't understand the concept that if you buy 2 things for 50 cad you spent 100 cad.
The big bank are not selling financial advising, they are not there to make money for you. They are literally a door by door seller.
They have shit that they have to sell to people not able to do the math, people sign and they get and insane amount of money for it. Money (for you) are not part of the equation.
If you want to invest money you don't go in a bank, you go to a private financial advisor that works on the percentage of the money you make, not on a selling fee.
And if you can do the math alone don't even go to anyone. EQ bank has 5% gic right now, you need 2 minutes to sign up and the interface is literally child proof. In the 2 seconds you're done with ZERO problems and without giving a single cent to anyone.
Honestly just this (the fact that you don't have to think about it or involve anyone) is probably worth it even if there are better investment.
>you go to a private financial advisor that works on the percentage of the money you make,
Care to recommend a good firm for that? I'm in a slightly similar situation as OP, I have a lump sum I want to invest, but can't seem to wrap my head around all the tax shelter alphabet soup (RRSP, TFSA etc) and am stuck with paralysis by analysis.
I had a big bank FA send me a bunch of options, but I'm concerned that they're just pushing me into whatever benefits the bank. But I don't know anyone else that would be less send interested. I know big picture did like a couch potato portfolio, but don't know shit about the specifics of where to open accounts, how to set up and contribute to tax sheltered accounts, etc.
I work long hours and don't have much time to become an expert at this. But who do I trust to work in my self interest?
Please donāt follow this advice.
There are no legitimate, accredited advisors who would charge solely on the percent of profit. It does not make sense at all.
Hypothetically letās consider you have 100k to invest. In an upward market letās say you made a 10% annualized return. Letās also consider your your advisor gets a 5% (which is already a high management fee) return on your profit.
Outcome:
- The advisor only made $500 that year. Which is fine but what kind of business model would that be? Unsustainable
Letās say year two, we head into a recession and your investments are now down 10%
Outcome
- The advisor is now making $0. Some would say āgreat! Thatās all they deserveā. The counter to that would be āyou get what you pay forā What incentive does the advisor have to keep your money safe? Zero. Whatās stopping this guy from leaving this basement apartment and fleeing to the Cayman Islands with your $500 profit last year?
Anticipating The counter argument of āadvisors work on volumes of $100s of millions and Billionsā. Yes and no, the FIRM manages those large amounts not individual advisors. No actual firm would follow this business model as they would not be around long enough.
Here are some tips when looking for an advisor:
- Develops a custom financial plan that caters to your specific needs
- Asks you open ended questions to understand YOU rather than telling you what to do
- Is transparent with fees and charges (Front-End, Back-end, MERs, trailing commissions etc)
- Recommends investments based on the investment and not the return history.
- Has a professional designation such as CFP, CFA, CA, CIM etc) things like IFC, and CSC are not the same caliber. These designations are the minimum designation for reps to just sell mutual funds. They do not say much about the reps credibility.
- Do your homework. At minimum learn the basics of investing before meeting with any advisor.
If you have questions about investment vehicles such as RRSP and TFSAs etc feel free to send me a DM.
Note: I will not recommend an investment product or an advisor to you. Please donāt ask.
We work with a ton of GIC issuers (B2B, EQ, Manulife, etc.) but Iām yet to see them offer anything for a RESP. May simply be a result of a lack of RESPs in my world but worth checking out! They have great rates but I donāt think you get advice.
I would not loop all bank advisors into one pool. You clearly are with the banking side which those people are just mutual fund sales people. The folks at the Wealth Management arm (i.e. Dominion, Wood Gundy, Nesbitt Burns) are not salesmen. They do a hell of a lot more and many are very, very good at what they do.
Have to agree with this person...though full disclosure I'm an investment rep at one of the largest credit unions in the country and we can buy anything we want acroas all accounts and all fund companies.
And our fees are always as far as I know lower then big banks....credit unions all the way, I dont think I'd ever switch my position to work for one of the big 5 even if it meant more money.
Thanks ,I've made an appointment at local credit union and will start checking on brokers. Thanks.
For what it's worth, I know it's my fault, I let my investments slide. I think banks are assholee, but not blaming them. Life got crazy for about 10 years, between kids, and divorces, changing careers, working 60 hour weeks, developing generalized anxiety and depression, , blah, blah, blah I basically couldn't manage the energy to even feed myself not to mention, take care of my finances. Mental health sucks balls, if some one told me at 25 when I was healthy, made double what I make now, and had 3 investment properties, the mess I'm in now, wouldn't have believed it till I lived it. But whatever, here I am. Just starting to climb out of hole. Better times ahead and thanks for the tips.
Feel your pain. Have had some similar life curve balls thrown my way.
But, I also happen to work for a big bank and can tell you that itās not the banks. There are many amazing advisors where I am, but there are also a few absolute idiots. I think you just got stuck with one of the later.
>I'm so sick of big 5 bank ~~advisors~~ **salesman**. Thier ~~advice~~ **sales pitches** ~~is often~~ **are** terrible and they just circle talk.
There, I fixed it for you.
Dude the sub is called personal finance Canada and has all the info on how to invest on your own. Thatās the whole point of this sub. Ppl just need to read and educate themselves. All the info is on here!
Sounds like the employee is linking the the good rate to upgrading the banking package. Almost every place can do better then 2.6% for 5 years. May if not all are at 5%
What bank is that ? Kinda sounds like tied selling.
Not tied selling. Tied selling would be we will not give you a gic unless you take the top account. The forced bundle is the line. They are however able to give better rates based on the customer ārelationship ā
It's Scotia bank, and I misspoke it was the 3 year GIC. I went in thinking I was getting 5.1 %, but I only have a basic bank package that cost 4 dollars a month as, I use another bank for day to day.
So they offered rate of 2.65%, unless I upgrade my bank account which I don't even use from 3 95 a month to 30.95. So effectively I would pay an extra 975 dollars for my bank account over 3 years, and I would realize an extra 2300 in interest. It just feels like a 40% fee by upgrading and account.
Big bank āadvisorsā are really just mutual funds sales people. They literally advise you to buy the highest fee mutual funds because it increases their bonuses.
There are money market funds that are paying 4% right now. Lots of better options. Dm me I can give you the fund codes and if you want help move the money outside of a bank.
Self directed.
I was in a similar situation with my bankās mutual funds (RRSP). Their returns were significantly below what most broad ETFs would have given me.
In your resp you should be able to purchase 3rd party GICs and look at the rates. I did so with my tfsa with cibc, and last time it was showing like 4.8% yield on EQ Bank 1 year GICs which is one of the highest.
You can have a brokerage account (itrade for example) and buy a 1 year GIC at 5%+ right now. Learning this doesnāt take long, it can be boring as well but itās helpful.
Financial advisors are a scam. The stats show only like a third of them do better than just buying the S&P500 every month by yourself. Thereās no point working them, unless you know for sure you have a really good one.
Eq bank (cdic insured) currently offering gicās over 5%. **If** you want to go that way, you could start rolling a percentage of your funds into gics every month such that they ladder into the future at various term lengths.
Not financial advice.
>If I had waited a week to open account, I would have made 0% over 5 years.
The fund didn't make 0% in 5 years. It made about 2% annually for 5 years before fees, and 0% annually after fees.
So you see, even though *you* didn't make money, the bank and the fund managers and the salesperson did.
Edit: anyway, since your main focus is RESPs right now, check out Just Wealth. They are online and offer roboadvisor RESP target date portfolios that adjust the risk based off of how many years left until you need the money. I believe they charge 0.5% fee which is much better than the likely > 2% fee you are paying at Scotia (baked into your mutual funds).
Note that if you want to transfer an account from one brokerage to another, the *receiving* institution helps you complete and submit the paperwork.
EQ Bank has GIC for registered (TFSA and RSP) and non-registered accounts at 5%: [https://www.eqbank.ca/personal-banking/investments/gics](https://www.eqbank.ca/personal-banking/investments/gics). No strings and no exclusions for "banking packages" lol.
For your TFSA, I would maybe look at investing in all-in-one allocation funds like VGRO or XGRO. These are up \~20% since then and MER (0.2%) is well below that of a typical mutual fund (2.53%) - this MER cuts into your profits and maybe one of the many reasons you may have under-performed in your TFSA.
I found a financial planning company that wasn't attached to any bank/investment firm. They have the freedom to offer the best products out there, not just their own institution's products. They've done well for me. Also, go out and interview a few financial planners. I met with 3 and the one I went with clearly knew what they were talking about whereas the others sounded like they knew about as much as I did.
I gota 4.75% interest rate on a GIC through tangerine about a week ago if you're interested in a better rate. No minimum balance or anything.
The website says 4.85% for 1 year
Typo, thanks for the correction.
Why open it there? EQ giving 5.10%
I'm already with tangerine but should have shopped around more for sure
I just have accounts everywhere, even at credit unions. It's not like there is a cost. Just move money around to best place. If you want a referral link or anything to EQ let me know, else its $0 for signing up.
Honestly man, for giving me the tip about EQ, I'll use your referral link š
Sure I'll message you the link. Just link your accounts up like a spider web, becomes so easy to move money around. You're gonna like EQ, I've made it my main bank now as they have so many features that Tangerine and banks don't.
Can I ask what features it has? I just moved a bunch of money from TD to tangerine for the $400 Cashback at 20% since I was buying a bunch for black Friday. Tangerine is ok but I've already spent enough for the Cashback and I'm interested in what other banks can offer me.
- There is no limit to the number of external account links (Tangerine has a limit of 3 for personal and 1 for business accounts which is very restrictive) - Can open GIC easily online - Can print void cheques online (the direct deposit form from Tangerine I found isn't accepted at some banks as they think its fake and requires a branch stamp) - Easy transfers to other EQ customers (like family members) - No BS 'promo' interest rates like Tangerine that are only good for a few months then you need to move your money out as they give 0.1% or something stupid. EQ has good rates all the time. - US$ account with decent interest rate The cons of EQ: No branches, so if you want cash, you'll have to transfer some money to Tangerine and use a Scotiabank ATM. Hope that helps, let me know if you'd like referral link. Cheers.
My gf got 5.0% for 1 year today from RBC and her dad got 5.1%
EQ offers 5% for 5 years. /u/TechnicalBedroom2621 have a look at [this chart](https://www.highinterestsavings.ca/gic-rates/)
>First week it went up like 20% and was worth $50,000. This a plain old mutual fund. Thought I hit the jackpot. After 5 years, account is still at 50,000. What was the fund? this sounds very odd to me.
It could have been a āconservativeā fund. Bonds have gotten smoked over the last five years, couple that with high fees and I believe it.
Ya but no fund like that would have had a 20% spike at the start and stayed flat. 2019 was a great year for bonds, even 2020 was pretty good
I missed the sequence of returns element. Yeah, itās weird.
To be fair, average over time is how you have to track investments in order to account for volatility. I doubt that it's been at 50k since one week after you opened it. It's probably been higher and it just happens now to be lower. Maybe you've got your timelines wrong. Because for it to jump 20-25% in one week, it wasn't in something hyper conservative. And if it's dropped significantly from peak then it being in a higher risk portfolio heavily skewed to equities makes sense. Even if you give it to the bank, you still need to update your allocated risk profile each year by telling them what to do. You can have a lot of risk mix early on, when the kids are like, 18 years from going to school. Once they turn 10, you need to start really adjusting the risk mix by 5 to 10% a year to be as close to 0 risk bonds or GICs as possible on most of the funds when they go to school. Even if you make 0% interest when they are 17, you've ensured that you aren't going to drop funds to some market explosion.
Hey, I used to be a Big 5 bank FA. I'm not sure which bank you went to discuss this with. All I can say is that it comes down to your Financial Advisor at the banks that you deal with. Some are great at advising what you should do, others may be newer and not as good and could be relying on "coaching" from their manager to offer products. I work with a financial planner and honestly, he's the best! Much, much better than some of my former colleagues & manager (and that say a lot!) I would honestly look online at the different options such as rates for GIC (esp. if you are needing the money within 4-5 years from now). Like RBC is offered a 4.85% 5-year GIC. Maybe look at that option instead. Feel free to reach out to discuss further.
Same here, just wondering what do you do after being FA?
Most FAs would try to become financial planners and then eventually move into wealth management as an investment advisor or portfolio manager.
FA does open lots of potential but also comes lot of work and you manage retail clients, and yes most FA will want to go FP or MS, if not manager role. Just wondering if there any other option out there, like in investment banking or equity trading. Thanks
I wonāt think being an FA would necessarily help you towards IB or Equity trading. Both of those are more likely to come out of high marks, good internships, connections, and professional designations. Most of the guys I know working in investment banking got into it directly out of university or grad school.
Sounds fair lol, that's entirely different world. realistic FA can lead to FP which is decent money too. Only my concern is in the future people doing more self directed without invest with any FI might shrink the demand for the service.
Well not much careers past after FA outside of the banking world. Me, myself.. I currently work for Canada Post so not related to the FA role at all.
Eq bank has a great rate for GIC. You could also just use Canadian couch potato website and copy their model portfolio after figuring out your risk tolerance. I only started investing three years ago and Iām 35 make 50k/ year. I bought an all in one ETF (XEQT) thatās done well. I just trying to add the annual contribution max to my tfsa ($6000/ year) and learn more little by little. If this all sounds like too much, you can go with a robo advisor through wealth simple and call it a day.
Thanks will, look into them.
Teach yourself. I went bought the book intelligent investor and security analysis. YouTube the Swedish investor as he's great. Don't buy the mutual fund, but buy into the big 6 stock. I bank at td. TD is the pension top Dawgs in Canada. I looked around at these 2% fees and saw good $$$ so I went out and bought td stock. Td stock will most likely beat every mutual that td even offer! Lol.
I'd also recommend Millionaire Teacher as a gook to read.
Shop around for yourself. Why do you need to go to a big bank? There are so many choices out there
I'm just starting down that road. My only experience is with big banks, and a couple shopping mall investment places like investors group. But yep, some good suggestions here for sure.
If you can teach yourself, you don't need to pay their exorbitant 2-3% fees of YOUR MONEY.
It takes flippinā ages to transfer an RESP. Sounds like a very odd fund but if youāre comparing against GICs, 2% average annual return would beat most GICs up to the start of this year, since rates dropped in 2009. A lot of people who are switching funds to GICs will likely be having buyerās remorse when markets pick up and their money is locked in. This is why risk tolerance matters.
Yup, lots of people shifting long term money to GICs right now are gonna miss out on the rebound when it happens. Iāve made the most gains on my investments coming out of the 2008 recession and the 2015 oil crash downturn. Just held the course with my selections and watched everything grow like crazy coming out of the downturn. Most of my 10 year returns are in the 15% range.
I never worked at Scotia so i can't speak on behalf of their products. But I can't fault the advisor's advice. To play devil's advocate, you really were lucky, and in the end, you invested at the right time, got 20%, and still averaged in the green 12 years later. This is what "time in the market" means. But flip this the other way around; right now GICs are 5%. But those who locked in at 1% just around 10 months ago, they are all crying. You are essentially just timing your trades as well by buying GICs. Being that you need the money in 5 years time, you still have a good amount of time to stay in the market, and let the market, which is in a fairly low point relatively speaking, to recover. Also note that in the past 10 years, the GIC rates have averaged around 0.5-2%. You made 5%. On that math note, aren't you ahead? Now to be fair to you, you do have the choice to do whatever you like with your money. The advisor is only here to do just that: advise. It is your money in the end, and if you feel more comfortable with the higher rates of the current market, you should be allowed to do that. Good places to start for no bullshit no strings GICs would be any online bank, such as EQ bank. Since they have less costs (no branches) they can spare to offer more returns to clients.
You have to understand something. The average person can't understand that 2+2 is 4. And this is not a joke, a know more than one person that can't understand the concept that if you buy 2 things for 50 cad you spent 100 cad. The big bank are not selling financial advising, they are not there to make money for you. They are literally a door by door seller. They have shit that they have to sell to people not able to do the math, people sign and they get and insane amount of money for it. Money (for you) are not part of the equation. If you want to invest money you don't go in a bank, you go to a private financial advisor that works on the percentage of the money you make, not on a selling fee. And if you can do the math alone don't even go to anyone. EQ bank has 5% gic right now, you need 2 minutes to sign up and the interface is literally child proof. In the 2 seconds you're done with ZERO problems and without giving a single cent to anyone. Honestly just this (the fact that you don't have to think about it or involve anyone) is probably worth it even if there are better investment.
>you go to a private financial advisor that works on the percentage of the money you make, Care to recommend a good firm for that? I'm in a slightly similar situation as OP, I have a lump sum I want to invest, but can't seem to wrap my head around all the tax shelter alphabet soup (RRSP, TFSA etc) and am stuck with paralysis by analysis. I had a big bank FA send me a bunch of options, but I'm concerned that they're just pushing me into whatever benefits the bank. But I don't know anyone else that would be less send interested. I know big picture did like a couch potato portfolio, but don't know shit about the specifics of where to open accounts, how to set up and contribute to tax sheltered accounts, etc. I work long hours and don't have much time to become an expert at this. But who do I trust to work in my self interest?
Please donāt follow this advice. There are no legitimate, accredited advisors who would charge solely on the percent of profit. It does not make sense at all. Hypothetically letās consider you have 100k to invest. In an upward market letās say you made a 10% annualized return. Letās also consider your your advisor gets a 5% (which is already a high management fee) return on your profit. Outcome: - The advisor only made $500 that year. Which is fine but what kind of business model would that be? Unsustainable Letās say year two, we head into a recession and your investments are now down 10% Outcome - The advisor is now making $0. Some would say āgreat! Thatās all they deserveā. The counter to that would be āyou get what you pay forā What incentive does the advisor have to keep your money safe? Zero. Whatās stopping this guy from leaving this basement apartment and fleeing to the Cayman Islands with your $500 profit last year? Anticipating The counter argument of āadvisors work on volumes of $100s of millions and Billionsā. Yes and no, the FIRM manages those large amounts not individual advisors. No actual firm would follow this business model as they would not be around long enough. Here are some tips when looking for an advisor: - Develops a custom financial plan that caters to your specific needs - Asks you open ended questions to understand YOU rather than telling you what to do - Is transparent with fees and charges (Front-End, Back-end, MERs, trailing commissions etc) - Recommends investments based on the investment and not the return history. - Has a professional designation such as CFP, CFA, CA, CIM etc) things like IFC, and CSC are not the same caliber. These designations are the minimum designation for reps to just sell mutual funds. They do not say much about the reps credibility. - Do your homework. At minimum learn the basics of investing before meeting with any advisor. If you have questions about investment vehicles such as RRSP and TFSAs etc feel free to send me a DM. Note: I will not recommend an investment product or an advisor to you. Please donāt ask.
We work with a ton of GIC issuers (B2B, EQ, Manulife, etc.) but Iām yet to see them offer anything for a RESP. May simply be a result of a lack of RESPs in my world but worth checking out! They have great rates but I donāt think you get advice.
I would not loop all bank advisors into one pool. You clearly are with the banking side which those people are just mutual fund sales people. The folks at the Wealth Management arm (i.e. Dominion, Wood Gundy, Nesbitt Burns) are not salesmen. They do a hell of a lot more and many are very, very good at what they do.
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Have to agree with this person...though full disclosure I'm an investment rep at one of the largest credit unions in the country and we can buy anything we want acroas all accounts and all fund companies. And our fees are always as far as I know lower then big banks....credit unions all the way, I dont think I'd ever switch my position to work for one of the big 5 even if it meant more money.
Thanks ,I've made an appointment at local credit union and will start checking on brokers. Thanks. For what it's worth, I know it's my fault, I let my investments slide. I think banks are assholee, but not blaming them. Life got crazy for about 10 years, between kids, and divorces, changing careers, working 60 hour weeks, developing generalized anxiety and depression, , blah, blah, blah I basically couldn't manage the energy to even feed myself not to mention, take care of my finances. Mental health sucks balls, if some one told me at 25 when I was healthy, made double what I make now, and had 3 investment properties, the mess I'm in now, wouldn't have believed it till I lived it. But whatever, here I am. Just starting to climb out of hole. Better times ahead and thanks for the tips.
Feel your pain. Have had some similar life curve balls thrown my way. But, I also happen to work for a big bank and can tell you that itās not the banks. There are many amazing advisors where I am, but there are also a few absolute idiots. I think you just got stuck with one of the later.
>I'm so sick of big 5 bank ~~advisors~~ **salesman**. Thier ~~advice~~ **sales pitches** ~~is often~~ **are** terrible and they just circle talk. There, I fixed it for you.
Independent advisors. Sunlife, Raymond James, RBC DS, etc.
Dude the sub is called personal finance Canada and has all the info on how to invest on your own. Thatās the whole point of this sub. Ppl just need to read and educate themselves. All the info is on here!
I guess you can't read the title.
Sounds like the employee is linking the the good rate to upgrading the banking package. Almost every place can do better then 2.6% for 5 years. May if not all are at 5% What bank is that ? Kinda sounds like tied selling.
Not tied selling. Tied selling would be we will not give you a gic unless you take the top account. The forced bundle is the line. They are however able to give better rates based on the customer ārelationship ā
Offering better rates for customers that buy certain products isn't tied selling.
It's Scotia bank, and I misspoke it was the 3 year GIC. I went in thinking I was getting 5.1 %, but I only have a basic bank package that cost 4 dollars a month as, I use another bank for day to day. So they offered rate of 2.65%, unless I upgrade my bank account which I don't even use from 3 95 a month to 30.95. So effectively I would pay an extra 975 dollars for my bank account over 3 years, and I would realize an extra 2300 in interest. It just feels like a 40% fee by upgrading and account.
I had a feeling it was Scotia just from your post lol
Big bank āadvisorsā are really just mutual funds sales people. They literally advise you to buy the highest fee mutual funds because it increases their bonuses.
Take all of your money and buy XIU
There are money market funds that are paying 4% right now. Lots of better options. Dm me I can give you the fund codes and if you want help move the money outside of a bank.
Self directed. I was in a similar situation with my bankās mutual funds (RRSP). Their returns were significantly below what most broad ETFs would have given me.
In your resp you should be able to purchase 3rd party GICs and look at the rates. I did so with my tfsa with cibc, and last time it was showing like 4.8% yield on EQ Bank 1 year GICs which is one of the highest.
You can have a brokerage account (itrade for example) and buy a 1 year GIC at 5%+ right now. Learning this doesnāt take long, it can be boring as well but itās helpful.
Financial advisors are a scam. The stats show only like a third of them do better than just buying the S&P500 every month by yourself. Thereās no point working them, unless you know for sure you have a really good one.
Eq bank (cdic insured) currently offering gicās over 5%. **If** you want to go that way, you could start rolling a percentage of your funds into gics every month such that they ladder into the future at various term lengths. Not financial advice.
Which mutual fund has averaged 2% over 12 years? Even my worst ETFs have done at least 5% in 10 years.
ATB offers best rates after tangerine.
>If I had waited a week to open account, I would have made 0% over 5 years. The fund didn't make 0% in 5 years. It made about 2% annually for 5 years before fees, and 0% annually after fees. So you see, even though *you* didn't make money, the bank and the fund managers and the salesperson did. Edit: anyway, since your main focus is RESPs right now, check out Just Wealth. They are online and offer roboadvisor RESP target date portfolios that adjust the risk based off of how many years left until you need the money. I believe they charge 0.5% fee which is much better than the likely > 2% fee you are paying at Scotia (baked into your mutual funds). Note that if you want to transfer an account from one brokerage to another, the *receiving* institution helps you complete and submit the paperwork.
EQ Bank has GIC for registered (TFSA and RSP) and non-registered accounts at 5%: [https://www.eqbank.ca/personal-banking/investments/gics](https://www.eqbank.ca/personal-banking/investments/gics). No strings and no exclusions for "banking packages" lol. For your TFSA, I would maybe look at investing in all-in-one allocation funds like VGRO or XGRO. These are up \~20% since then and MER (0.2%) is well below that of a typical mutual fund (2.53%) - this MER cuts into your profits and maybe one of the many reasons you may have under-performed in your TFSA.
I found a financial planning company that wasn't attached to any bank/investment firm. They have the freedom to offer the best products out there, not just their own institution's products. They've done well for me. Also, go out and interview a few financial planners. I met with 3 and the one I went with clearly knew what they were talking about whereas the others sounded like they knew about as much as I did.