There’s a new and very important investment book in town. And this one is called Beat The Bank, The Canadian Guide to Simply Successful Investing from Larry Bates.
Last week I discussed why Larry just had to write Beat The Bank in this post Cut The Crap Investing and Beat The Bank. In the headline I’m the set up man for Larry. There’s a whole lot of crap investing going on out there in Canada, in fact we are the ‘crappiest’ in the developed world. And Larry has the punchline to that set up – Beat The Bank. And he should know how, he’s a former banker. On the book cover he is now tagged The Enlightened Banker.
This is an important book not just because of the shocking and important messages being offered to Canadians; but because an enlightened banker is the messenger. Larry has already generated some wonderful awareness and has been able to take that message to the mass media of TV and radio. Reporters love the angle of ‘Former Banker Blows The Whistle On The Mutual Fund Industry’. Of course Larry has also received some wonderful support from personal finance writers and bloggers. You will find some reviews offered on these links from Jonathan Chevreau, boomerandecho and Sean Cooper who might offer a one-two wealth-building punch, Burn Your Mortgage and Beat The Bank.
What I really like about the book is that it is true to its title. It’s all about the simple but tragic truths. Canadians pay the highest mutual fund fees in the developed world. As Larry puts it in Beat The Bank, those fees are wealth destroyers, along with taxes and inflation.
1. Time 2. The Amount Invested 3. Portfolio Growth
On wealth destruction Larry offers a humourous ‘quote’.
My investments put three kids through University. Unfortunately, they were my advisors’ kids – Anonymous
And there’s the crux, the punchline. When Canadians pay those high fees that average 2.2% annual or more, over an investment lifetime they (you) will give away half of their (your) investment wealth. Why on earth would you want to buy the bank and advisors a Porche or three?
Larry creates some very nice framing of the current situation (not good) and the escape route (very good), that path to financial health and happiness. The not-so-good is Old Bay Street. That includes the big banks and the traditional mutual fund companies that charge those high (wealth destroying) fees. Beat The Bank then goes inside the offices of the Big Bank ‘Advisors’ and offers some unique insights on the tricks of the trade. Larry demonstrates how Old Bay Street manages to keep you dependant and dazed and confused. Chapter 5, Old Bay Street Secrets, will be an infuriating but important read for many. The truth is you don’t need them, and investing is and should be very simple and rewarding.
The good news is that there is a suite of wonderful sensible low fee options available in Canada that can set you free; they’re available on New Bay Street. I was fortunate to be able to work on New Bay Street as an advisor with Tangerine Investments.
Larry offers clear directions on how to find that New Bay Street.
One can take the time to learn the investment basics, become a self-directed investor and then move to one of the lowest fee solutions – creating an ETF (Exchange Traded Fund) portfolio or an individual stock portfolio comprised of leading blue chip companies.
One can also move to one of the Canadian Robo Advisors. You get digital and/or human advice. Those are managed portfolios, there’s nothing for you to do but put in monies on a regular schedule. You can typically cut your fees by 60-70% or more compared to traditional mutual funds.
Canadians can also opt for the fee-for-service advisor avenue. Larry offers …
Unlike traditional Old Bay Street Advisors, New Bay Street ‘fee-for-service’ advisors aren’t investment salespeople. Because they don’t sell investment products, fee-for-service advisors are not influenced by investment product commissions. This enables fee-for-service advisors to provide ‘conflict free’ advice based on your best interests.
And there you have it. Old Bay Street works for Old Bay Street. New Bay Street works for you.
Show. Me. The Money!
The incredible life-changing difference between giving away your wealth and keeping and building your wealth is demonstrated by way of comparing two family scenarios, The Meeks and the Ables. In the end there is certainly one family more able to enjoy a comfortable retirement. Here’s the annual income generated from the investments.
Don’t be a Meeks. Find out what you’re paying in fees. Find out if you’re about to hand over 50% of your investment wealth. Ask the tough questions. Then discover one of the simple ways to build wealth. Walk on over to New Bay Street. OK, don’t walk, Run!
It’s not difficult. To change your financial life click here.
To help your fellow Canadians, please hit those share buttons at the bottom of this post. You can also click on that follow button to receive email notices of future cuthecrapinvesting.com blog posts.