You can't make this up.
I drove all the way to North York mid-afternoon yesterday to visit a lovely older lady (not even a client) who I have helped with on everything from buying a new vehicle through my friend who owns Performance Auto Group www.performanceautogroup.ca/ (another shameless plug for my friend) to a full-on Wealth Forecast created by Bianca only weeks after giving birth (second shameless plug in one sentence!) with multiple scenarios on selling her house, buying a condo or the status quo. Lots for her to think about.
Also, I have gone through, in detail, her existing portfolio held at a life insurance company's Broker/Dealer arm.
The contents of her "portfolio" (and I use quotes because it is NOT a portfolio) are something we see frequently when new clients transfer their existing portfolios to High Rock to work with us.
Without going into a lot of detail, this "portfolio" sits in 100% mutual funds (where all-in fees are about 2.75% vs our 1.20%) and 65% in Equities and 35% in a Balanced Fund...not even a Fixed Income Fund or a Bond to be seen. This for a 70yr old lady without the benefit of a work pension or health insurance? Sounds more like hedge fund-style concentrated risk to me. And the poor lady has no idea of the inherent risk in her portfolio. As an aside, I would have to think that if the Ontario Securities Commission (OSC) found a registered Portfolio Management company, like High Rock, had a client that age, in that financial situation and with that portfolio, they would do more than slap us on the wrist. Totally inappropriate a portfolio, at least for her. Therein lies the difference between being registered under Investment Industry Regulatory Organization of Canada (IIROC, self-regulated by the banks/dealers) where her Advisor is registered and the OSC (a gov't agency reporting to the Min of Fin of Ont), where High Rock is registered. I could go on about the differences, but that is for another post.
And the worst part is, when I told her what she was paying in fees, she tells me that she has been asking her current Advisor what she pays in fees but keeps getting the runaround from the Advisor. I couldn't believe I was hearing this so soon after just writing on the topic. I told her I just wrote a blog on this exact topic last week: (highrockcapital.ca/pauls-blog/report-on-business-article-on-fees-rob-carrick-help-my-adviser-is-blowing-smoke-on-investing-fees)
I drew out our Fee Structure infographic on the back of a piece of paper for her to see. I hoped like heck she realized just how honest and transparent High Rock is about our Fees.
And if the fact that I just wrote a blog on how Advisors avoid conversations about fees, as I am sitting on her couch in her living room, I get an email from Scott on my iPhone. I read about half of the contents of that email and just passed my phone over to her to read in it's entirety. I know Scott wants to distribute this heartfelt email from one of our clients so I won't steal his thunder...unreal timing!
As I said, you can't make this up.