A few years back, a longtime friend of mine gave me a tip on an offshore investment opportunity. Perfectly legal, she explained, and with a startlingly high return. As investment opportunities go, I thought it was somewhere between ridiculous and clinical insanity. And yet I was hard pressed to say no.
It's reasonable to pay fees to have your money managed, but there are a lot of unreasonable costs that have somehow made a home in the financial world and really only benefit a small group of middlemen who distribute investment products to advisors (and maybe the golf courses they belong to). Before identifying some key costs, let's look at what 1% savings can do on a portfolio. These are two identical portfolios invested for 30 years and growing at 6%. One has a 1% additional fee paid each year.
Every innovator and entrepreneur wants to leave their mark on the world, something they've created (possibly "the next big thing") or something that has truly made a difference. As a serial entrepreneur and innovator/designer, I've always been curious about how things work and matched it with a drive to solve a problem.
We believe that the current "free money" policies around the world of negative or zero-ish per cent central bank rates have not worked and do not work, and cannot understand why central banks continue to follow this course. The definition of insanity is doing the same thing over and over again and expecting a different result.
The Client Relationship Model - Phase 2 (CRM2) is a new set of industry regulations meant to provide Canadian investors with more details on their investment costs and performance. It was developed by the Canadian Securities Administrators, an organization representing Canada's investment industry regulators.
The unsexy truth is, larger companies are better positioned to innovate than start-ups. They have more money, more man-power, a more trusted brand, and most of all, more ways to reach their customers. Out of all bank customers, some are technology enthusiasts who moved entirely to robo advisers as soon as they could.