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  • Mar 22nd, 2017 12:15 am
[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes

Private Banking

Morning,

Interested to know if there are any private banks/ wealth management out there worth dropping an inheritance at.

So, wife and I about to inherit a sizeable sum in American dollars, most of which we don't want touched, and leave it to the kids.

We looked at RBC, BMO, and UBS. Nothing really stands out about them or any other, other than reports on who is consider "safer", or better investor.

Wondering if anyone here have some insight, something perhaps I'm just not seeing on google searches.

Thanks for your time.
51 replies
[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes
I'm currently in Halifax area, but will most likely move to BC.
Member
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Oct 19, 2016
436 posts
140 upvotes
Toronto
FYI most likely you will have to invest with their fund services atleast 0.5m or 1m minimum with them to get private banking services or you will have to buy some of their other services. Are you ready to do that ?
[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes
mrtrump wrote:
Mar 15th, 2017 12:08 pm
FYI most likely you will have to invest with their fund services atleast 0.5m or 1m minimum with them to get private banking services or you will have to buy some of their other services. Are you ready to do that ?
That's not an issue.
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Oct 19, 2016
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I can do a better job of investing your money and will cost 80% less than those guys. PM me or reply here if interested.

Also you will not find much information on pvt banking services online. Its a small crowd and definately dont think most of them will hangout at RFD. lol...
Xavier88 wrote:
Mar 15th, 2017 12:41 pm
That's not an issue.
[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes
mrtrump wrote:
Mar 15th, 2017 1:00 pm
I can do a better job of investing your money and will cost 80% less than those guys. PM me or reply here if interested.

Also you will not find much information on pvt banking services online. Its a small crowd and definately dont think most of them will hangout at RFD. lol...
What r we talking about, a hedgefund?
Sr. Member
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Mar 9, 2012
616 posts
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Be careful about these sharks on the forum trying to take over your money.
Bank may charge you higher fees, they may provide you with less returns but they will remain a safer pick.
Safety > Greed

My 2 cents,
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Nov 22, 2015
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skunkyjosh wrote:
Mar 15th, 2017 2:08 pm
Be careful about these sharks on the forum trying to take over your money.
Bank may charge you higher fees, they may provide you with less returns but they will remain a safer pick.
Safety > Greed

My 2 cents,
Xavier88 wrote:
Mar 15th, 2017 9:51 am
Morning,

Interested to know if there are any private banks/ wealth management out there worth dropping an inheritance at.

So, wife and I about to inherit a sizeable sum in American dollars, most of which we don't want touched, and leave it to the kids.

We looked at RBC, BMO, and UBS. Nothing really stands out about them or any other, other than reports on who is consider "safer", or better investor.

Wondering if anyone here have some insight, something perhaps I'm just not seeing on google searches.

Thanks for your time.
Skip the Big Banks and find yourself a good fee-based advisor. You want to have an advisor who's job isn't just to sell you his/her company's funds.

Look for an advisor with their CFP designation and ideally, you want one that can act as a fiduciary, since it sounds like you don't want to make any investment decisions.
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Mar 9, 2012
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superfresh89 wrote:
Mar 15th, 2017 2:13 pm
Skip the Big Banks and find yourself a good fee-based advisor. You want to have an advisor who's job isn't just to sell you his/her company's funds.

Look for an advisor with their CFP designation and ideally, you want one that can act as a fiduciary, since it sounds like you don't want to make any investment decisions.
Read up about stories from people getting ruined and stolen by these "fee-based advisors". Good luck getting your money back after.
Jr. Member
Sep 9, 2016
188 posts
63 upvotes
Toronto
Follow Warren Buffets advice.

1.Invest in Index funds. In the last 10 years index funds have outperformed a select group of hedge funds. Google warren buffet bet.

2. Also avoid the pitfall of most rich people who are accustomed to getting what they want by paying more for it. Paying more for investment advice WILL not guarantee better advice.

If you have the time read, Warren Buffet latest letter (there is a thread in the investment forum). He explains the above points in greater detail.

The fact that private banking was the first thought when you came into this money is proof you are already falling into this psychological trap. Avoid it at all costs and good luck.
[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes
Mythical09 wrote:
Mar 15th, 2017 7:02 pm
Follow Warren Buffets advice.

1.Invest in Index funds. In the last 10 years index funds have outperformed a select group of hedge funds. Google warren buffet bet.

2. Also avoid the pitfall of most rich people who are accustomed to getting what they want by paying more for it. Paying more for investment advice WILL not guarantee better advice.

If you have the time read, Warren Buffet latest letter (there is a thread in the investment forum). He explains the above points in greater detail.

The fact that private banking was the first thought when you came into this money is proof you are already falling into this psychological trap. Avoid it at all costs and good luck.
Not looking to invest. Private banking wasn't my first thought, just wanted to know more about it. In the end, I really don't care, just want to park most of my money in a safe place.
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Apr 21, 2009
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Xavier88 wrote:
Mar 15th, 2017 8:05 pm
Not looking to invest. Private banking wasn't my first thought, just wanted to know more about it. In the end, I really don't care, just want to park most of my money in a safe place.
I use private banking with TD, but I do it as I had an opportunity to get the service at a good price, and it's been very convenient. I didn't do it for managing investments and such - though as I'm sure with any bank they'd be more than happy to do that. Though as with all banks, I don't feel like you'd get the most intelligent advice from so called advisors that work at the bank.

Can you share what kind of amount you are inheriting? If you prefer to keep it private that's ok.
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Aug 8, 2012
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Xavier88 wrote:
Mar 15th, 2017 8:05 pm
Not looking to invest. Private banking wasn't my first thought, just wanted to know more about it. In the end, I really don't care, just want to park most of my money in a safe place.
Safe from what?

Safe from robbers?
Safe from volatility?
Safe from erosion due to inflation?

If it's not for you, but for your kids, that's a long time horizon. Put it into a Vanguard low-cost index ETF that charges on the order of 0.1-0.3% fees and forget about it for several decades.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
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[OP]
Newbie
Feb 7, 2017
13 posts
9 upvotes
joey003 wrote:
Mar 15th, 2017 8:17 pm
I use private banking with TD, but I do it as I had an opportunity to get the service at a good price, and it's been very convenient. I didn't do it for managing investments and such - though as I'm sure with any bank they'd be more than happy to do that. Though as with all banks, I don't feel like you'd get the most intelligent advice from so called advisors that work at the bank.

Can you share what kind of amount you are inheriting? If you prefer to keep it private that's ok.
Enough for a few generations to live well.
ace604 wrote:
Mar 15th, 2017 8:27 pm
Safe from what?

Safe from robbers?
Safe from volatility?
Safe from erosion due to inflation?

If it's not for you, but for your kids, that's a long time horizon. Put it into a Vanguard low-cost index ETF that charges on the order of 0.1-0.3% fees and forget about it for several decades.
Banks needing bailout money in 2008 was what I was thinking of when I said "safe." I'm also a big fan of the show "American Greed", therefore will never trust hedgefunds, or that sort.
Jr. Member
Sep 9, 2016
188 posts
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Toronto
One consideration you may want to remember is that, when investing for a long period of time a difference of even 1% in fees may result in a huge difference in the payout in the end because of compound interest.

The other is that is there a particular reason you are leaving the money for your kids. It is generally accepted that when kids are left with large sums there can be some serious negative effects on their life. Notice how bill gates and warren buffet is handling it. Just saying you may want to think about that (i also realize its non on my business and is not the question you asked).

There is one investment most people make with a 25yrs commitment and that is real estate. For the most part (for this kinds of timeline) it has proved very resilient, even despite the 2008 financial crisis.

lastly, you might want to set up a trust. This has several benefits, such as protecting the money from things like lawsuits and fighting for who gets what once you pass. Most people think their kids will get along once they are gone but with large sums things are often different. Also depending on how you structure it, it may help with taxes.

Im my experience, a great CFP is someone who will work with you to come up with a plan and help you successfully execute it. That means protecting you from emotional rather than rational decisions and making changes to the plan as circumstances change.

This kind of planning requires coordination between your lawyer (estate planning), CFP, family members etc to pull off successfully. Its quite the undertaking. Good luck!

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