Q – With a family, a home (and mortgage), employer pension plans, RRSPs, TFSAs, and RESPs, a reasonably large portfolio, I find that my financial affairs are getting to be a bit complicated. I’d like to offload some of the work, and I’ve heard that financial planners with a CFP designation could be helpful. My question is, what precisely do they do to earn their fee, and how do I find one? – Rita T., Burlington, Ontario
By Margaret O'Sullivan | Thursday, October 30, 2014
We increasingly see use of the term “trusted advisor,” particularly in the arena of financial and estate planning services. But what is a “trusted advisor” as opposed to someone simply providing advice? At its root, I would submit, is the requirement that a trusted advisor acts in the best interests of the client, which are primary, and any self-interest of the advisor is a clear and resounding second.
Although theMawer Global Small Cap Fund debuted only in 2007, it has more than held its own, both when compared with the MSCI World Small Cap Index and its peer group. For the five years ending September 30, it has earned an annualized return of 19.5%, handily outpacing both the index and its peer group. As impressive as the returns have been, the results from Mawer’s emphasis on risk management have been even more so. The fund has a level of volatility that is lower than its peer group, while holding up very well when markets are in decline.
In my practice, I often run up against what I call the “Warren Buffett syndrome.” The legendary investor (and one of the world’s 10 richest men) has spawned an entire sub-industry purporting to “explain” his investment methods and apply them to the average investor. I’m often asked why, in my practice, I don’t just follow this or that bit of Buffett advice, and make all my clients rich. If only! The plain fact of the matter is that neither I nor my clients can ever “invest like Warren Buffett.” And anyone who claims they can is stretching the truth. Here’s why.
Canada’s largest telephone service company,BCE Inc. (TSX: BCE), is facing regulatory hurdles, but the company is improving its services while keeping its operating costs down. That should let it maintain its high dividend yield. And with BCE’s takeover of Bell Aliant (which I covered in a recent article) nearly complete, the company’s earnings outlook is even brighter.