October 27, 2013
April 6, 2013
… Because I own a corporation and because my wife was 50% owner of that corporation, we will amend her 2020 dividend to include an additional 20,000 in in dividend income that will show as a payable to the corporation. The extra $20,000 dividend will be applied against her RRSP income. The $20,000 payable will then be paid to her estate (to which I am the beneficiary). Now the $20,000 is outside the RRSP and therefore will not be taxed again.…
Check with your accountant to see if you can declare another dividend payable after her date of death but to shareholders of record on a date before her date of death.
Such dividends could be reported on a separate optional Rights and Things tax return that has another basic personal amount allocation. That and the resulting dividend tax credit would allow another chunk of money to flow tax free or without much tax to the estate and eventually to you from the corporation.
April 6, 2013
… Your argument seems to be that it is 100% my fault because I listened to a person that presented themselves as an expert who gave me incorrect advice that should not have been given. So if I walk down a alley at night in a bad part of town and get robbed it is not the robber fault if he puts up a sign that says beware of robber.
It happens all the time in the investment industry. Salespeople overselling themselves as "vice-presidents," "experts," and "advisors".
You have to be careful. Legally, they may not be responsible. But, you, as executor, are!
Also, the reason I am so concerned is not because of what’s happen but I want to know if this person should be my advisor going forward. From what I seem to be hearing you are saying I should keep him because everybody in the industry would work the same way. I just know that if I worked that way in my industry I would have no clients.…
It would be good to consider what you've hired him for. If he was hired to be a portfolio manager and he has been delivering returns of benchmark + ½% after your fees, 7 years out of 10, then he has done what he is supposed to. In that case, you should just look for another advisor for tax planning and financial planning.
He and his firm may also not be keen on having you as a client. If you are not willing to pay them for financial planning and tax planning but keep asking for advice in such areas, then they won't mind if you go elsewhere.
1% to 2% per year is not a premium fee for portfolio management. Your comment about fees paid per trade shows ignorance about how investments are managed. It's the resulting returns that count. Not the number of trades.
If you were looking for lots of trades per year to justify the management fee, then you are looking for something like a hedge fund. Hedge fund managers don't work for under 2% per year. Their fees are something like 2% plus 20% of the gains above a certain benchmark.
Those of us who are successful investors realize after a while that I'm ultimately the one responsible for my investment results either directly or indirectly by who I chose to take financial and legal advice from.
When a relative passed away, the executor and I met with an estate lawyer for legal advice. We did not rely on the deceased's long time investment advisor for anything more than administrative advice.
April 23, 2021
Again you are not addressing my main point in all of this. if advising is not his job than why didn't he just say that instead of telling me that i needed to to nothing! WHY WHY WHY. if he did not know the correct answer to the question he should have stfu.
As for them not wanting to represent me in the 7 years of investing for me we do around 2 calls a year. He constantly cancels those two phone calls for I am only guessing are more important clients. the last phone call 4 months ago i checked my emails and he cancelled scheduled calls 4 times before finally talking to me on the 5th for less than a half hour.
I have asked him in two emails last week to call me and left a phone message on Friday and Monday and he still has not acknowledged me never mind actually talking to me. Is this someone that you would be proud to have in your industry because he would not be welcome in mine (not that he last long)? Its funny how you stick together until there is a chance to steal the client. then its wow he's doing everything wrong. I have wasted enough time on this. Your protectionism borders on that of doctors. I will not respond again because you refuse to address my concern.
September 11, 2013
Ok, he should have stfu, but you're an adult and (unless you've given someone POA) thus still ultimately responsible for your own financial matters, your signature is on tax returns, etc. And you accepted a responsibility (executor) and didn't do it right, at least re this issue. Your refrain is it's somebody else's fault (guess you want someone, anyone, else to make up your financial loss), I have a notion why the guy avoids you. A bad match, so find yourself someone who meets your standards, it's what the rest of us do.
October 21, 2013
I'm glad to hear you have found a solution to the presenting problem through your corporation.
As for the investment guy, it is clear you are not satisfied with his behaviour, and I would agree he should respond to you in a more timely manner if he wants the client relationship to continue. Since this has been an ongoing issue, I would imagine he has more clients and more funds under management than he really has time to fully support, especially after 35 years of building his practice.
You have not said anything about the success of your investment portfolio, so I assume you have been satisfied with him as a portfolio manager.
The sum total of it all is that you will need to move on and find another way of managing your portfolio.
AltaRed has suggested a robo-advisor. Regardless of your conflict with AltaRed, this is a reasonable suggestion. He has also given you a website you can consult. This is all to the good and in your best interests.
However, you also suggested at one point that you thought you might just take over the reins yourself and stick with the investments you now have. This is probably not a great idea. Norman is right about the number of trades not being any kind of criterion. In fact, too many trades would be a much bigger concern. If an investment is working out and continues to have strong prospects or provides a solid base to your portfolio, there is no reason to change it.
To be blunt, you know nothing about investing. You appear to have done well with your portfolio manager, who does. So, your goal is to do as well or better without him. This may be accomplished in several ways, as follows:
1. Hire a different portfolio manager on the same basis as the first one. This will involve some searching. It will cost almost a much as now (I think you should be able to get a competent person for 1%), but bear in mind that there are always costs in investing. If you have mutual funds, there will be different fee arrangements for different kinds of managers, including DIY.
To be honest, I am scepitcal about your ability to choose someone. You simply don't know enough, and it's a lot of work to learn what you need to know.
2. Robo-advisors. This really may be your best option. There is all kinds of evidence that a good robo-advisor programme can keep pace with portfolio managers. As a software guy, you can probably imagine how this works. There are limitations to it. It can't stock pick, nor should it. It is vulnerable to whatever the current herd mentality might be. It doesn't have the potential astuteness that a well versed experienced portfolio manager might have. It will save you some money. It can be difficult to find out what their rebalancing criteria are, which is the key to their success or failure.
3. Waalth Management.. This is the more elite service package offered by the big banks and so on. I don't normally recommend this but it might be right for you. It is expensive, but they offer everything you needed in 2020, including in-house legal. For the person who has lots of money and knows nothing, it may be the best thing.
You need to know the difference between an adviser and an advisor. Look carefully at their busiess cards. Look up their qualifications and find out what they mean. What you have been asking for is someone who will act in your best interests. "Advisors" are only obligated to act in a way that is consistent with your goals, or words to that effect. This is why a wealth management service with advisers may be your best bet even if more expensive.
Even deciding amongst these options requires some knowledge and research. There is not avoiding that.
Good luck!, and thanks for donating to the animal rescue.