Misconceptions about your money.
Imagine this. You have been out in the workforce for a few years when one of your fellow employees brags about getting a big tax refund this year.
“How did you do that?” you ask.
“I started an RRSP a few years ago and every year the government gives me money back for doing it!” they say.
Hmmm…maybe you could get in on this gig. But how do you do it?
You do what many people in your shoes would do and go to that trusted institution that you have been dealing with and ask them for help. They will gladly do it, after all they are there to help! They start you on a monthly plan of $100 per month and tell you that you won’t even notice the money coming out of your account after the first few months. Wow! You can’t believe how easy it was and how smart these people were. Then, you never heard from them again. Ever.
After a few years of putting money into your RRSP and getting money back from the government you go back into your trusted institution to ask a few questions of the person you dealt with a few years ago only to find out they aren’t there anymore. Really? They seemed to be so good at what they do. Even though I haven’t talked or heard from them for over two years they were really able to get me started down the road to my retirement.
Does this sound familiar?
Have you started an investment plan somewhere and never heard back from the ‘advisor’ since you started the plan?
If this does sound familiar, you need to know that all advisors get paid for the services they are providing to you. If it is not the advisor directly, the firm they are working for gets paid and then pays the advisor some sort of compensation.
Do they deserve compensation?
It all depends.
How often do you hear from them? Can you get through to them? Is it the same one you initially worked with? Do they rebalance your investments on a regular basis? How is the performance?
Well, maybe it is time for a change.
A change you say? Won’t that be expensive? Won’t there be taxes to pay? Do I have to talk to my current advisor and tell them I am leaving them?
The straight up answer is a resounding no.
According to a survey conducted by Leger, 32% of Canadians believe that RRSP transfers would include high transfer fees and 24% believe that there would be tax penalties. Many (16%) wanted to avoid the uncomfortable conversation with their current advisor.
These are all misconceptions.
An RRSP may have transfer fees, usually in the $150 range, that can be reimbursed by the new institution, there is no tax event ‘triggered’ by transferring one’s RRSP nor would you have to talk with the former advisor.
It is actually a very simple process.
If you aren’t sure you are getting value from your advisor or institution, maybe it is time for a second opinion on what you have and what you are getting.
We offer a free second look on your portfolio and find out where some of the holes are that may be leaking money.
Contact us today to set up a time for your complimentary second look. Since we are a smaller firm we can only complete a limited amount of these portfolio reviews so this offer may be postponed at any time. Contact as soon as possible before this happen.
You can reach us by phone at 877-242-9116 or email me directly at email@example.com