They say the 80’s were they hay days for mutual fund companies. Fund companies used to send advisors on exotic vacations costing many thousands of dollars per person. I know a few advisors and one who was has been in the business for over 30 years told me that on Bay Street, it was not …
Advisor Tricks: Churning DSC Free Mutual Fund Units
There are advisors out there who “churn” client accounts by taking all the redemption free DSC units that mature and putting them into no-load units. My advisor pointed this one out to me and I thought I would share it.
Mutual funds that are sold on a DSC basis, or rear-load or back-end load, pay your …
Ignore The Stock Pickers On TV
What kind of goof goes on TV to give you free stock advice? First of all, if anyone had any special, and more importantly, consistent insight into the markets they wouldn’t be working for a living. They would be privately making tons of money behind the scenes without showing their cards.
Whenever you see a mutual …
There is a Reason Fund Companies Have to Tell You That Past Results Are Not Indicative of Future Performance
Any time you see an advertisement for a mutual fund, it is the law that they must add a disclaimer that reads: “Past results are not indicative of future performance.” The reason this is there is because it’s true. Isn’t it insulting that fund companies spend millions showing off their historical returns when they know …
Indexing Means Active Management After All
I know there are some people who don’t like indexed investments like ETFs because “there is no manager” and they just don’t feel right putting a lot of money into an investment where there isn’t someone there at the helm.
Well, that’s Superbad Advice.
If you put all the active managers together the net result IS the …
Does Your Advisor Squirm If You Ask Him How Much He Makes?
Do you know there are financial advisors who earn well in excess of $1 million per year with nothing more than a high school education? It’s because they are in sales. Sales has little to do with book smarts.
One of the first warning signs that an advisor is not being completely forthright with you is …
My Kid Is Not Allowed To Get His MBA
The tuition for a 12 month MBA from Queen’s University in Canada is $62,500. One of my sons is earning $75,000 now so by going to school full time he is foregoing that money as well. That brings the total to $137,500 for one year.
If I put that money aside for him and it gets …
My Advisor Studied For A Whole Month To Become A Financial Advisor
One of the many financial advisors I have had the pleasure of working with (sarcastic tone = high) once bragged to me that he only took a month to study and pass his exams in order to become licensed as a financial advisor. I think about half way through explaining that to me he realized …
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