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Any experience with Pinnacle Wealth Brokers?
February 8, 2021
11:29 am
rhvic
Victoria, BC
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I am wondering if anyone here has any experience with Pinnacle Wealth Brokers?

An advisor who latched onto me after I opened a HISA account at Manulife is suggesting investments with Pinnacle which might pay 6-9%. I am very leery of any such low liquidity private investments, as the downside is a possible 100% loss.

Any comments? Thanks.

February 8, 2021
12:28 pm
Loonie
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Trust your instincts.

I had to look up what an "Exempt Market Dealer" is (which they are).
"Exempt Market Dealers (EMDs) are fully registered securities dealers who engage in the business of trading in prospectus exempt securities, or any securities to qualified exempt market clients. EMDs may focus on certain market sectors (e.g. oil and gas, real estate, minerals, technology, etc.) or may have a broad cross sector business model. Clients of EMDs include companies, institutional investors, accredited investors (sophisticated or high net worth individuals who are eligible to trade securities in the exempt market), or eligible investors who are qualified to purchase exempt securities pursuant to an offering memorandum."

One has to "qualify" to invest with them. In other words, you need to have a good sized account.

Time to revisit your financial plan. I doubt that anything like this is in it.

Just say "no thanks" and tell them not to call you any more. Don't get pulled into a conversation about why you don't want to deal with them. You are not obliged to give them a reason. "Just say no!"

February 8, 2021
12:45 pm
Londonguy
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rhvic said
I am wondering if anyone here has any experience with Pinnacle Wealth Brokers?

An advisor who latched onto me after I opened a HISA account at Manulife is suggesting investments with Pinnacle which might pay 6-9%. I am very leery of any such low liquidity private investments, as the downside is a possible 100% loss.

Any comments? Thanks.  

I'm guessing this is another one of these deals where you get tied up for ages and they put your money into inherently risky second or third mortgages and sometimes even construction loans. Part of the pitch is that a mutual fund approach of holding a basket of loans minimizes the risk -- you can choose to believe that if you wish. I wouldn't touch one with a 10-foot pole myself but if you want to to know how the plumbing works in this area of investment, the filings for some of these entities are public, e.g. Capital Direct.

https://www.incometrustone.com/

If you scroll down to the right a bit on that page there's a whack of PDFs you can review (I did this myself a few years ago). If you have any financial know-how you'll get the picture fairly quickly. Interesting reading if nothing else

February 8, 2021
1:21 pm
Dean
Valhalla Mountains, British Columbia
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rhvic said

. . .

Any comments? Thanks.  

It's not worth the risks involved.

Walk away.

    Dean

sf-cool " Live Long And Prosper " sf-cool

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