Personal Finance

CBC MarketPlace:financial advisors

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  • Mar 3rd, 2014 12:33 am
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[OP]
Deal Addict
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Sep 16, 2012
3073 posts
319 upvotes
Mississauga

CBC MarketPlace:financial advisors

An interesting look at some of the stuff that financial advisors tell clients, some of the promises and returns mentioned through the hidden camera interviews where pretty funny, anyone else think there needs to be a overall reform in the industry, to much space to take advantage of clients and there money.

http://www.cbc.ca/marketplace/
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Banned
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May 12, 2004
9759 posts
4104 upvotes
Ottawa
For over 2000 years there have always been people able to separate idiots from their money. With all the information available today at anyone's finger tips (or even just here for that matter) I have no pity for anyone who blindly delegates the handling of their life savings to a stranger.

I watched the episode and it doesn't take much time to learn about MERs, or do one of the thousands of risk assessment tests online. Anyone walking in a bank to talk to a total stranger with their arms out holding 50K should get scammed. I'm not saying everyone should handle their own investments, but everyone should have a very basic level of financial education.

That's one of the biggest failures of our school system. People graduate high school knowing how to write poetry or dissect a frog but have no clue how to fill out income tax papers (that they'll do for the rest of their lives) or handle the money they will earn for the rest of their lives. Instead of the government wasting more tax dollars reforming a system catering to idiots why not attack the root of the problem and turn these idiots into smarter people before they hit adulthood?
Censorship is telling a man he can't have a steak just because a baby can't chew it.
- Mark Twain
Banned
Nov 27, 2006
2200 posts
444 upvotes
Toronto
PS the guy they have on that show giving instruction to the host about the 'advice' is kinda dumb.

he says that she should used that money to pay down debt.

why would you go ask about investing if the solution is to pay down debt...??? also, with rates being as low as they are, you should be investing it.
[OP]
Deal Addict
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Sep 16, 2012
3073 posts
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Mississauga
sirex wrote:
Mar 1st, 2014 3:04 pm
PS the guy they have on that show giving instruction to the host about the 'advice' is kinda dumb.

he says that she should used that money to pay down debt.

why would you go ask about investing if the solution is to pay down debt...??? also, with rates being as low as they are, you should be investing it.
Its pretty simple, as a you determine a person risk profile and see what there options are, paying of debt with the money could be actually best thing for them, the more conservative you are with investment, less chance of return, which would negate the whole issue of low interest rates because you return of investment could be no better then interest you are paying on debt, which you generally see in mutual funds that these places sell.
Banned
Nov 27, 2006
2200 posts
444 upvotes
Toronto
olek86 wrote:
Mar 2nd, 2014 10:43 am
Its pretty simple, as a you determine a person risk profile and see what there options are, paying of debt with the money could be actually best thing for them, the more conservative you are with investment, less chance of return, which would negate the whole issue of low interest rates because you return of investment could be no better then interest you are paying on debt, which you generally see in mutual funds that these places sell.
but you need to be brain dead not to see that reality. so negates the whole purpose of going to the advisor in the place.

client "Hi I want to invest $50,000 but I have $100,000 in debt."

me Ok great.. How do you feel about risk and volatility and what is your time horizon??

client "Oh I'm very scared and cant sleep at night if my investments flucatuate."

me Why are you here wasting my time?
Newbie
Oct 15, 2009
87 posts
43 upvotes
Kanata
Yep, they should be turned away. But instead their money is still taken and placed in fixed income products that meet suitability requirements, but rarely return greater after tax returns then paying down debt (including mortgages).

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