Ideally, you should be given one return as if all your accounts were a single consolidated portfolio. These returns should be provided to you (on an after fee basis) so that you can see the big picture. Does knowing that your $25,000 TSFA returned 8%, while your $350,000 RSP earned 3.5% and your $250,000 personal account earned 5% often leave you wondering how much your wealth grew by?
The choice of hiring a new advisor or changing your current advisor is of immense importance no matter what size of portfolio you have and this should be an educated decision. Practically speaking, you should give your financial advisor at least 3 years in order to assess their investment results.
Benchmarks make it crystal clear whether you are capturing the full returns of the market over time. Mutual fund managers have fared poorly versus their benchmarks. For the five years ending 2011, only 2.7% of Canadian stock mutual fund managers beat the S&P TSX Composite Index return after fees and expenses, and just 11% of U.S. stock funds outperformed the S&P 500 (in Canadian dollar terms). http://www.spindices.com/documents/spiva/spiva-canada-year-end-2011.pdf
You have to be careful when choosing or changing a financial advisor, and you should gain as much information about your stock portfolio as you can. Only then are you truly an enlightened investor able to make educated decisions that bring you desired results.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Other Posts by Chris
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I can't say I blame them. I might ask though, if the world has changed, if it is more volatile, "how are you changing the
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Dalbar’s study of investor behavior shows how investor
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A good starting point is to identify the two primary causes of tax; portfolio turnover and an inefficient portfolio structure.
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Our best technique for protecting portfolios is called Modern Portfolio Theory.
This Nobel Prize winning idea said it is insufficient to look at investments in isolation as is done in the traditional approach of picking stocks and bonds. Rather rational investors will seek out “efficiently diversified portfolios” offering the highest expected return for each level
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If you have a child that is 10 years old or younger (born in Alberta between January 1, 2005 and March 31, 2015) they are eligible for a one-time $500 grant from the provincial government. However, you only have until July 31, 2015 to submit the form and apply for this grant before it ends
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The investment industry and media often refer to the “market” and the “market return”.
Or that the market was up or down on the day and that a portfolio manager's return outperformed or underperformed the market return. So what exactly do they mean and how does it relate to you?
The market generally refers to
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The Enlightened Investor: A New Trustee Act for Alberta
Provincial legislation is periodically updated. In Alberta, a revised Wills and Succession Act came into effect in 2012, an updated Estate Administration Act was passed in 2015 and now an initiative is underway to co-ordinate the Trustee legislation across Canada.
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Normally, this is fairly straightforward. You
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Investment fees charged to registered accounts