You’d probably be surprised to learn how many investors don’t fully understand their investments. By that I mean accurately, and equitably, evaluating returns, costs and benefits of different investments as well as measuring the true value provided by investment advisors.
Knowledge is an investor’s best friend; and it is for this reason that the industry, namely IIROC (Investment Industry Regulatory Organization of Canada) has begun making changes, bringing in new rules, specifically designed to clarify, inform and facilitate even more meaningful and beneficial partnerships between investors and advisors.
Partnerships worth cultivating because the 2012 Value of Advice study for The Investment Funds Institute of Canada showed that, under numerous circumstances and time horizons, households using a financial advisor save and accumulate more assets than those who do not have an advisor. Here’s a link to the study, if you’re interested.
I’ve always believed in accountability, whether it relates to fees, performance or the services – quality of service – my team and I provide. I’ve also long believed in the importance, and value, of good, honest, thoughtful discussions and advice.
We explain and educate our clients so they are better prepared, and more willing, to discuss their goals. We do our best to help them truly understand their risk tolerance. We encourage them to invest the time to make a financial plan (with the help of our financial planner) and stick to it. And we endeavour to help them make rational, informed decisions instead of emotional ones, stay on track and become successful investors so they can reap the rewards.
So I hope my clients agree when I say the greatest value I can provide – even beyond returns – is sound advice.
The way I see it, we’re a coalition of common interests. We’re on the same team and want the same outcome. When my clients are successful, I am successful. So it benefits all of us when my clients are well-informed.
As more information on this important topic is released, we will continue the conversation, right here. So please check back regularly.
CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC and a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.