Investing

Recommend an advisor (One time fee)

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  • Aug 7th, 2021 10:28 pm
[OP]
Jr. Member
Feb 7, 2011
156 posts
18 upvotes
Ottawa

Recommend an advisor (One time fee)

Hi All,

I've been doing my own investments since 2017 and am currently 36 years old. Are there any recommendations for one time fee advisors that would review my portfolio and provide recommendations based on my retirement goals ?

Ultimately, I'm still young but if I should be making changes I would prefer knowing now then 15 years from now.

My current portfolio is quite simple:

RRSP
XAW %75
XIC %25
Return: ~%11 (Annualized)

TFSA
VGRO: %90
Cash: %10
Return: ~%8 (Annualized)

Thanks!
12 replies
Deal Expert
User avatar
Dec 12, 2009
25186 posts
14916 upvotes
Toronto
Actually you are doing fine with the ETF selection. I would say keep doing what you are doing and forgo the advisor.
Koodo $40/6GB
Public Mobile $40/15GB, lot less with rewards
Fido $0.00/4GB+tablet
Tangerine Bank, EQ Bank, Simplii
Member
Jul 22, 2018
210 posts
168 upvotes
If you dont feel confident in it than maybe do go see one.

why do you keep cash in the tfsa?
Deal Addict
User avatar
Jan 23, 2011
1379 posts
2026 upvotes
Your two biggest holdings, the Vanguard VGRO and Blackrock XAW, are ETFs that invest in ETFs, which may have higher management expense ratios. But maybe I am picking at straws...
Deal Expert
User avatar
Dec 12, 2009
25186 posts
14916 upvotes
Toronto
Gingercookie wrote: Your two biggest holdings, the Vanguard VGRO and Blackrock XAW, are ETFs that invest in ETFs, which may have higher management expense ratios. But maybe I am picking at straws...
There is a price to be paid for asset allocation. If the status quo is offering good returns and allows OP to stay the course, don't fix if it ain't broke which is the primary reason to forgo the professional advice. Smiling Face With Open Mouth
Koodo $40/6GB
Public Mobile $40/15GB, lot less with rewards
Fido $0.00/4GB+tablet
Tangerine Bank, EQ Bank, Simplii
Deal Addict
Feb 26, 2017
2565 posts
3649 upvotes
I don't think there is much point worrying about MER when your down to .22 for XAW and .24 for XGRO. I think the main thing is to get away from Mutual funds with a 1-2%+ MER.
Deal Addict
User avatar
Jan 23, 2011
1379 posts
2026 upvotes
Chance7652 wrote: I don't think there is much point worrying about MER when your down to .22 for XAW and .24 for XGRO. I think the main thing is to get away from Mutual funds with a 1-2%+ MER.
I know I am picking at straws, but it just shows how pervasive these sponsors can be at creating all these structured products to earn fees. Yes 0.0022 per year is negligible, but

I buy and hold 100 shares of Blackrock for $80,000 and paid $9.95 commission once, vs.

I buy Blackrock's products like this XAW product for $80,000 X 0.0022 = potentially $176 hidden fees per year

No wonder Blackrock's shares keep rising...
Deal Addict
Feb 26, 2017
2565 posts
3649 upvotes
Gingercookie wrote: I know I am picking at straws, but it just shows how pervasive these sponsors can be at creating all these structured products to earn fees. Yes 0.0022 per year is negligible, but

I buy and hold 100 shares of Blackrock for $80,000 and paid $9.95 commission once, vs.

I buy Blackrock's products like this XAW product for $80,000 X 0.0022 = potentially $176 hidden fees per year

No wonder Blackrock's shares keep rising...
Its a valid point but I think sticking to the plan likely outweighs owning the individual etfs for most people. I think a large part of investing is to avoid making bad decisions and the more moves you make the more chances you have of making mistakes. I'm saying this as someone who still probably buys/sells more than I should :).

My fees are a bit higher at about .3 MER for US and Canada etfs. I'm invested in a Blackrock ETF from my work and the Eseries for my RESPs. Its pretty hard for me to change it though as I don't want to move my RESPs and my work RRSP is a 6% match which outweighs any savings elsewhere...
Deal Addict
User avatar
Jan 23, 2011
1379 posts
2026 upvotes
Chance7652 wrote: Its a valid point but I think sticking to the plan likely outweighs owning the individual etfs for most people. I think a large part of investing is to avoid making bad decisions and the more moves you make the more chances you have of making mistakes. I'm saying this as someone who still probably buys/sells more than I should :).

My fees are a bit higher at about .3 MER for US and Canada etfs. I'm invested in a Blackrock ETF from my work and the Eseries for my RESPs. Its pretty hard for me to change it though as I don't want to move my RESPs and my work RRSP is a 6% match which outweighs any savings elsewhere...
I am not recommending OP to change strategy. But it does reinforce my thesis of owning Blackrock stock. No wonder they are so big. The strategy of creating ETFs and then creating a 2nd set of ETFs to buy its own ETFs is a money making strategy for Blackrock
[OP]
Jr. Member
Feb 7, 2011
156 posts
18 upvotes
Ottawa
BardoonD52881 wrote: If you dont feel confident in it than maybe do go see one.

why do you keep cash in the tfsa?
I usually wait till there's a bit of a dip in the market to top up so I like to keep a bit in cash.
[OP]
Jr. Member
Feb 7, 2011
156 posts
18 upvotes
Ottawa
I'm not really going to stress all that much over the fees and would prefer staying to course since it's worked out well so far. I feel like my wife and I are well positioned we're both 36 years of age and we also have my defined pension with the gov. (%70 of best 5 years salary). My wife is self employed so we started RRSP/TFSA early to benefit from compounded interest and what not.

Reason for an advisor is simply to have a high level look and potentially offer up suggestions. For example, we still have not touched my TFSA and have been focusing on maximizing RRSP contributions. If we consider my pension should we focus more on TFSA to avoid tax implications when we start drawing for our retirement ?
Deal Addict
Dec 8, 2020
1145 posts
1293 upvotes
S.E corner of Toront…
Gingercookie wrote: Your two biggest holdings, the Vanguard VGRO and Blackrock XAW, are ETFs that invest in ETFs, which may have higher management expense ratios. But maybe I am picking at straws...
Gingercookie wrote: I know I am picking at straws, but it just shows how pervasive these sponsors can be at creating all these structured products to earn fees. Yes 0.0022 per year is negligible, but

I buy and hold 100 shares of Blackrock for $80,000 and paid $9.95 commission once, vs.

I buy Blackrock's products like this XAW product for $80,000 X 0.0022 = potentially $176 hidden fees per year

No wonder Blackrock's shares keep rising...
Gingercookie wrote: I am not recommending OP to change strategy. But it does reinforce my thesis of owning Blackrock stock. No wonder they are so big. The strategy of creating ETFs and then creating a 2nd set of ETFs to buy its own ETFs is a money making strategy for Blackrock
^^^ its that simple even when comparing performance.

BLK common shares with 5069 holdings

https://seekingalpha.com/symbol/BLK

in the ETF line up

ITOT with 3633 holdings

https://seekingalpha.com/symbol/ITOT

VTI with 3910 holdings

https://seekingalpha.com/symbol/VTI

VTSAX mutual fund with 3910 holdings

https://seekingalpha.com/symbol/VTSAX
Member
Nov 30, 2017
448 posts
330 upvotes
Toronto
As others have said an advisor won't add much/any value to you and you're doing fine on your own.
Yes you should max your TFSA next. You'd generally always want to max utilize your tax-free accounts.
It seems you DCA which works very well in your case.

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