Personal Finance

Retirement planning:where to get independent advice?

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  • Aug 30th, 2010 2:31 pm
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Sr. Member
Aug 12, 2007
528 posts
3 upvotes

Retirement planning:where to get independent advice?

RRIF Annuity or combo?

seems that bank and investment hse advisers are only interested in pushing their own commissioned/or quota using your money?
Any books worth reading ? Independent advisers fit for RFders
thanks
14 replies
Deal Addict
Jul 8, 2009
2028 posts
482 upvotes
Edmonton
I can't believe you haven't had any responses yet. I'd go with the RRIF, not the annuity unless you are very, very conservative and want to take the management of your money out of your hands. Even then, no thanks. With interest rates being so low, it's a bad time for an annuity.

Regarding the independent advice question, you can find a good independent advisor who would advise you on this. Expect that person to likely iscourage the annuity also.
Deal Addict
Jul 8, 2009
2028 posts
482 upvotes
Edmonton
wesboag wrote: What exactly is your question?
Are you asking about retirement planning in general or more specifically as to what the more appropriate choice or combo is between a RRIF and an annuity?

Although I agree with Wing Nut on the crappy annuity returns as of current, there are some products available that are similar to an annuity but with increasing benefits and growth potential. They are also guaranteed. They are called life income benefits. They work like so....

They provides predictable, guaranteed income for life, starting as early as age 50. The lifetime income amount is based on your age making you eligible for higher payments as you get older. you are eligible to earn a 5% deferral bonus every year until you make a withdrawal. If you don’t need to take an income right away, the deferral bonus can help you grow your lifetime income amount even when markets are down.

As your policy market value increases, you have the potential to secure those gains to increase your lifetime income amount. Your lifetime income amount will not decrease regardless of how the underlying funds perform.

Guaranteed investment fund policies offer access to assets whenever needed. Certain fees or RRIF minimums may apply at the time of withdrawal. Withdrawals in excess of the annual guaranteed income amount will affect your lifetime income amount and make you ineligible for deferral bonuses.

Depending on your risk tolerance and associated time horizon..i.e your health at the time of your decision...this type of product is for someone looking for a secure, predictable and guaranteed income. Its kind of like a GIC, but with an added twist I guess you could say.
He's talking about guaranteed minimum withdrawal balance products like Manulife Income Plus. Sun Life and IA Clarington also have some.
Sr. Member
Aug 12, 2007
528 posts
3 upvotes
Wing Nut wrote: I can't believe you haven't had any responses yet. I'd go with the RRIF, not the annuity unless you are very, very conservative and want to take the management of your money out of your hands. Even then, no thanks. With interest rates being so low, it's a bad time for an annuity.

Regarding the independent advice question, you can find a good independent advisor who would advise you on this. Expect that person to likely iscourage the annuity also.
is there a "BBB" type of independent advice?
It seems everybody is after his /her piece of your money from the banks/brokerage houses?(eg BMO/Nesbitt Burns)?
Sr. Member
Feb 11, 2010
502 posts
262 upvotes
Find yourself a fee based, rather than commission based adviser.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Jor wrote: Find yourself a fee based, rather than commission based adviser.
Whether an advisor charges a fee or makes commission off products has nothing to do with the advisor's competence. There are a lot of other factors to look at.
Sr. Member
Feb 11, 2010
502 posts
262 upvotes
Thalo wrote: Whether an advisor charges a fee or makes commission off products has nothing to do with the advisor's competence. There are a lot of other factors to look at.
True, a commission based adviser may be entirely competent but it doesn't ensure an independent viewpoint.
Sr. Member
Aug 12, 2007
528 posts
3 upvotes
wesboag wrote: What do you mean by this?
yellowpages: who can you trust?
friend's advice"they may be duped but dont know it yet ,Mr. Madoff made off with a lot of money before being caught
banks: why would they hold sponsored seminars and treat you cheap lunches and then give you advice free?

how do you know an independent adviser is competent and truly has your interest at heart?
Deal Addict
May 20, 2003
2864 posts
25 upvotes
petaling108 wrote: how do you know an independent adviser is competent and truly has your interest at heart?
I agree, it's tough to find one. Some say you find them by referral, but does the referrer really know what they're talking about? I have friends who think their advisors are great but they're in high MER mutual funds and were sold universal/whole life insurance policies; and they brag about getting all this free advice for "free".

The only way an advisor can be independent is if they're fee-only, as they have nothing to sell you. You pay a fee (sometimes a high one) for advice. The focus is usually more on financial planning rather than investment planning and selection, which IMO is a good thing. There are 2 problems though... being fee-only doesn't mean they are good, and fee-only advisors are really difficult to find.
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Mar 11, 2010
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0, Mississauga, Miss…
petaling108 Can I ask What you do for living?
Newbie
Jan 10, 2010
31 posts
1 upvote
vancouver
petaling108 wrote: RRIF Annuity or combo?

seems that bank and investment hse advisers are only interested in pushing their own commissioned/or quota using your money?
Any books worth reading ? Independent advisers fit for RFders
thanks


talk to someone with a CFP designation
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
seanjohn wrote: talk to someone with a CFP designation
Again, doesn't always guarantee unbiased independent advice.
Deal Addict
Jul 8, 2009
2028 posts
482 upvotes
Edmonton
Thalo wrote: Again, doesn't always guarantee unbiased independent advice.
True. I am a CFP and believe that my advice is bias free, but one never knows. I suppose it's pretty much impossible not to have some bias enter into recommendations. Even a fee-for-service planner can have bias.
Newbie
Jan 20, 2010
82 posts
9 upvotes
I agree...talking to a CFP professional will ensure they are competent. I also am a CFP and am more than aware the time and energy that is put into that designation. Compared to a financial advisor at a bank that has perhaps a history degree and their CSC course.
I was once told by a TD Advisor he does not invest in individual equities on the TSX (nor recommends investing in equities listed on the TSX) because there is not enough liquidity. Good advice?
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Dec 31, 2001
8234 posts
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Toronto
Hi thanks for the info.

I just did a search on Manulife Income Fund to get some info for my Dad who is over 65 (senior) and this thread came up.

He is looking at the Manulife Income Fund and I said that I'd do some research for him. He has over $100Kto invest into a program like that.

From what I understand if he puts in $100K he gets 5% interest and he can withdraw a monthly income on those funds. Is that true? Also, what fees are involved and what penalties are involved if in an emergency needs some or all of the $100K out???

Are there other programs like this that are better from other companies? He is not looking for high risk mutual funds.

What about Estate Bonds, what are those???

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