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Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
Contact
  • T613.237.5544 x 313
  • 1.800.230.5544
  • F613.237.5949
  • 265 Carling Avenue,
    8th Floor,
  • Ottawa, Ontario K1S 2E1

Is Your High-Priced Advisor Any Wiser Than You?

May 11, 2018 - 0 comments

When you take your car in for a tune-up or yourself in for a check-up, you expect your mechanic and healthcare provider to know more than you do about their respective areas of expertise. Shouldn’t you expect the same from your financial advisor – i.e., better advice than you could come up with on your own? Unfortunately, that’s not always the case. 

 

Why is this so? An intriguing new study suggests an answer that might not be your first guess: Many financial advisors simply don’t believe in sensible investing. The study found that “advisors trade frequently, chase returns, prefer expensive, actively managed funds, and underdiversify,” not just in their clients’ portfolios, but in their own! 

If you end up chasing after an advisor who is chasing after ill-advised tactics, you’ll be no better off than if you did these things by yourself. Worse in fact, since you’ll be paying extra for the privilege. That’s too bad, especially since there is good advice out there. Where would you find it? I suggest following your common sense. Subscribe to Common Sense Investing

By: Ben Felix with 0 comments.
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