If you are wondering exactly how your financial advisor is paid, you are not alone. With many advisors and the clients, the fee question is like the elephant in the living room: it’s always there but clients and their advisors gingerly step around it to avoid disturbing it. It’s like asking someone how much he or she earns. Most people aren’t comfortable asking or answering that question. But where investing is concerned, people have every right to know how much their advisor is paid – and what they do to earn their pay.
The impact of investing your money
Many investors and analysts made some bad calls in 2015 in a number of areas ranging from interest rate movement to oil price predictions. “So, what else is new?” you ask.
Some were armed with the research, industry contacts, experience and knowledge of how the markets work. You might think all these tools would help them enrich themselves and their clients. To no avail, as oil prices collapsed (taking the Canadian dollar with it) leaving global markets in disarray.
Canadian businesses need to plan for what’s next
Don, 66, and Ellie, 55, had spent the night in emergency at Timmins and District Hospital after Don suffered a sudden stroke.
He owned a quarry business and had no succession plan. While Don’s grown children were flying to Timmins from across Canada to visit, none of them wanted to get involved in the family business. Ellie’s role was limited to being a shareholder in the business and helping with the books.
Dictate your terms of retirement
Don and Ellie’s situation is common, witnessed by the fact that only one third of Canadian businesses have succession plans, most of which are unwritten.
(Source: The Canadian Federation of Independent Business). Continue reading