This week I had the pleasure of heading to the SiriusXM studios in Toronto. I taped a podcast for moolala with all-things-money superstar Bruce Sellery. It is a quick and punchy podcast appearance. But I wish I’d thrown more punches. Not at Bruce, he’s a wonderful man. Here’s what I should have said on moolala.
Now I certainly think I delivered the message and mission of Cut The Crap Investing. I’ve got that one down cold.
Canadians pay some of the highest mutual fund fees in the world. Fees are wealth destroys as Larry Bates, the author Beat The Bank, will remind us. Cut The Crap Investing shows Canadians the path to the many simple low fee options.The Mission Statement
Of course Larry demonstrates that fees can eat up to half of our returns. It’s often much worse than that in real terms once we factor in DSC funds and fund switching to create fees (income) for the ‘advisors’. That’s not a guess, that’s what I observed while an advisor at Tangerine Investments. I conducted portfolio reviews for clients ‘outside’ investments. It was not pretty.
But what about that great advice?
Bruce responded ‘but what about that great value in that advice?’ I think I replied ‘ya sure, but’. And I certainly acknowledged that there is incredible value in good advice. But I think I then went soft. Maybe I danced around the ring a bit instead of throwing the mutual fund knockout punches. I was probably soft ’cause Bruce is so nice and he had a warm smile on this face.
The truth is Bruce, that the majority of Canadians invest in high fee mutual funds and receive no advice, or very poor advice. There’s no advice often, because they are simply being sold a product. They are being to sold-to. They are not being advised. Canadians will usually get that treatment if they walk into their bank. They’ll get the same treatment (or worse) if they walk into a mutual fund sales office.
Poor investments. Poor advice.
Now if you have real monies, you may receive some real advice and some better investment options. But of course the typical Canadian does not have a lot of money to invest. So most deal with that ‘crap’.
That’s why I’ll suggest that Canadians self-direct or look to the Canadian Robo Advisors. They are not so Robo at all as I communicated on moolala. Some are more boutique with advice, compared to digital and robotic.
And I had suggested that Canadians consider advice-only planners. That way you can ensure that you are receiving conflict-free advice.
And of course, Jonathan in this MoneySense article reminds us that not all mutual funds are bad. Tangerine is awesome as well, but not included in that post as they offer passive index-based funds.
Thanks again, so much, to Bruce and the team at SiriusXM Canada. I am a long-time subscriber. Once you go Sirius it’s hard to go back to ‘regular’ radio and those annoying commercials, ha.
Here’s the deets – SiriusXM Radio: Canada Talks – Channel 167. Airs across North America on Saturdays 8am and 4pm ET; Sundays 3pm and 9pm ET. Note that live sports sometimes lead to the show being pre-empted. Moolala is also available any time commercial-free on SiriusXM On Demand.
The ever-popular weekend reads.
Very cool, MoneySense has a fresh new look. Of course if you’re interested in taking control of your monies (or getting better at that) you should bookmark that url. I really like how the site is now organized by category. I think they call that the site architecture.
On findependencehub John DeGoey asks – what if market fear is the real pandemic? Jonathan Chevreau also re-posted Alexandra Macqueen’s wonderful guest post from Cut The Crap Investing. Nice to see that making the rounds; it was also picked up for Carrick on Money in the Globe.
Mark Seed and his wife are back from their wonderful trip to Belize. On myownadvisor here’s the weekend reads post. Many useful topics and considerations covered, as always.
Here’s an entertaining update on Passive Canadian Income. What you might find interesting in that post is Rob’s update on his …
And here’s something that most of us are considering. Should we cancel our travel plans due to the coronavirus outbreak. Here’s Chrissy on eatsleepbrethefi as they consider their pending trip to Japan.
I’ll admit we are on hold with our plans to travel to Portugal in mid June. We have not yet booked. I’d guess we are heading to the east coast instead.
Can you handle 100% of your money in stocks in a correction on A Wealth of Common Sense.
Here’s something that will peeve you off if you’re a Canadian taxpayer. We keep backstopping federal government employee defined benefit pensions. It’s even affecting our deficits and debt levels. You pay more, they retire early. Why do Canadians keep voting for this kind of stuff?
Give to your children, not the tax man.
Here’s a very good article from Jason Heath on how to ensure your inheritance goes to your children and not the tax man.
My pal Warren Buffett takes a pass on Canada. On Seeking Alpha I had penned that the time might be right for investors to look at Berkshire Hathaway. The world’s greatest investor is sitting on $150 billion in cash. He can’t wait to go shopping.
And on investing and coronavirus and more – the stock markets are silly. Maybe you shouldn’t look. I also reported on the new record for monthly ETF sales. While active managers were running away ETF investors were setting a new record.
Thanks for reading. Don’t forget to follow Cut The Crap Investing.
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