McRaven says nothing is more important than experience. The reason he is so comfortable with his decisions is he knows he has the experience to understand how missions unfold. I can relate to this. So many people procrastinate about their money because it seems overwhelming. He says to those he briefs it may seem a complicated operation BUT he understands the problems, has the data to deal with the problems, a plan A and a Plan B, based on experience not just KNOWLEDGE he would take someone with experience OVER knowledge any day. I have 25 years plus experience so don't worry ! There is nothing you can tell me that can shock me.
Very proud of my son Benjamin Waite Top 50 Young Wealth Advisor Canada and one of 4 finalists for two different national awards.
Top 50 and one of the 4 finalists for 2017 Young Gun and also for ETF Champion .
Benjamin Waite has worked so hard the last seven years since finding his passion and achieved designations most don’t until much older.
In September he became Chartered Investment Manager ( CIM ) which means in June he achieves his goal of being a fiduciary discretionary portfolio manager.
Most investment adviors in Canada work to a suitability standard , he will be one of the few who like Doctors, Lawyers and Engineers work to a fiduciary, put your client first, rule.
Its not just Mom saying he is briliiant Benjamin has been congratulated by his dealer for being innovative .
Benjamin runs his own practice, he doesn’t represent a large company so some industry recognition means a lot .
Watch the video below to find out why you need a CIM to look after you NOT a mutual fund salesperson.
Stop getting your financial education from salespeople and see a professional!
The Power of Index Funds:Canada's Best-Kept Investment Secret
Ted Cadsby, CIBC's vice-president responsible for mutual funds has written an excellent
introductory book on indexing for Canadian investors. The Power of Index Funds:
Canada's Best-Kept Investment Secret starts off by explaining what index funds are and
how they work. Cadsby then explains why they're better than actively managed funds. He
systematically refutes every conceivable objection that a skeptic might have. Finally
Cadsby goes through the process of building portfolios and selecting specific funds for a
variety of investor profiles.
Index Funds is written in the same conversational style that was popularised by David
Chilton in The Wealthy Barber. While some may object to this style, in my opinion it
works quite well. This is a book without the jargon and endless references to obscure
academic studies that one finds in most books on investing . While the book's primary
appeal will be to beginning investors, Cadsby's arguments will ring true with more
advanced readers who perhaps have seen some of them before in magazine articles or
newspaper columns .
The case for indexing is actually even more compelling than what's presented in Index
Funds. That's because Cadsby uses index returns minus an MER of 0.90% as his
benchmark. (CIBC's index funds charge a 0.90% MER.) But in reality it's possible for
individual investors to run index portfolios for much less using competitors' index funds.
For instance Altamira and Royal charge 0.50% for most of their index funds. And one
can also use Index Participation Units like the new S&P/TSE 60 iUnits or the US S&P
500 SPDRs which charge less than 0.20%. Even CIBC rebates their MERs down to
0.30% for accounts that hold at least $150,000 in their index funds.
In discussing how difficult it is to distinguish skilled fund managers from lucky ones,
Cadsby uses the oft-cited example of 1,000 people flipping coins. After 10 tosses it's
likely that at least one person will have flipped 10 heads or 10 tails in a row. But this is
the result of luck, not skill. Cadsby then uses this logic to contend that it's possible for
10% of all mutual funds to beat the average fund's returns for three consecutive years due
only to chance. Then he adds the coup de grace: "Given a sample size of 1,000 [ fund
managers], there is some consensus that it would take around 25 years to be able to
conclude that a manager is likely to be talented, rather than just lucky. Even then we're
talking about a higher probability -- not a certainty." Who needs those odds?
Yet despite this analysis Cadsby argues that indexing doesn't work for certain asset
classes like small caps, and in Pacific Rim and "emerging market" countries because the
markets on which they trade are less efficient than the large cap markets in North
America and Europe. The inefficiency may be true, but it's not the only criterion. Trading
costs (brokerage fees, bid/ask spreads, securities taxes and the like) are also much higher
in these markets. Other indexing proponents like Malkiel and Swedroe argue that any
edge an active manager may have in a less efficient market is more than offset by those
higher costs. Cadsby on the other hand concludes that it's better to use actively managed
funds in these classes.
Kathy email : email@example.com www.kathyinthemedia.ca
What is Net Worth Management ? Video http://bit.ly/2mZdoqP
Small business owners work hard to grow their businesses, keep customers happy but forget to plan for their own future until suddenly a problem arises or they want to retire. Dont be that person! Start thinking ahead of how to make the most of what you have. business owners often work so hard they focus on NOW. What is all the hard work for? Will you want to slow down at some point and enjoy the outcome of your efforts? Most owners who get in touch do so because they have a problem. Sometimes its too late to fix it.
Don't be like that , take time to look ahead and put some plans in place that will make the most of what you have and any change easier eventually
Buffet is very critical of high investment fees and how they drag on returns, they are a rip off, use low cost funds, track the market. A hedge fund manager bet him he was wrong over 10 years. On average the hedge fund has done 22% and the market 60% . Its looking like Warren will win. The bet money has been invested all along so a charity will benefit from a windfall of 1.9 million and the truth is proven .
The billionaire investor, who is revered for his stockpicking, has already stated that he has advised his wife to invest in an S&P 500 tracker like Vanguard’s 500 Index fund if she outlives him.
“I believe the trust’s long-term results from this policy will be superior to those attained by most investors—whether pension funds, institutions, or individuals—who employ high-fee managers,” he wrote in his annual letter from three years ago.
Buffett has promised to return to the subject in his next shareholder letter, which comes out on 25 February, Bloomberg reports.
Do you want to be financially free? Do you want your money to work for you or your broker?
There are common steps we all need to take , Warren Buffet says his secret to success are being born in America, good genes and compounding of money. Its not what you earn its what you do with it consistently that matters.
Be an owner not a consumer , dont just own an Apple phone , own Apple stock. Become an insider, the system is set up for shareholders to win not the investment clients. Know your investment expenses. Your MER is not the only one , there can be 17 others hidden. The average is 3%. Takes 60 years to double your money. If you want to win a race do you want a 100 pound or a 300 pound jockey? that what huge fees do , slow you down. The big lie is you have to be rich to invest , the second we can beat the market , the third lie is fees don't matter. Learn to invest and stay invested for the long run .
Also on my FaceBook page https://www.facebook.com/yournetworthmanager/
Kathy Waite Saskatchewan . Fee only financial planner. Retirement income specialist.
Kathy Waite Fee for service financial planning. I am offering a free portfolio review value $750.00 to help you answer the question above.
You trust your bank. They care for you, right? They do what’s best for you? I’m afraid they don’t. The banks do not put you, their customers, first. Their main duty is to their shareholders. Recent scandals about hidden fees and blatant misinformation given to customers about their financial products has demonstrated one thing; you can’t trust them.
They were fully aware of how they were operating and didn’t bother to do anything to address the problems until they were exposed for it. It’s time to stop being the customers of the big banks and investment companies and to become the shareholders that they are looking out for. I will show you how.
The scandal of overcharging
Canadian banking customers have been systematically overcharged by the banks for years. Back in 2014, it emerged that Toronto Dominion (TD) bank had been directly and indirectly overcharging customers for financial products. They claimed that ‘internal errors’ had led to a situation where they failed to inform clients when they qualified for lower fees on their investment products. This resulted in some 10,000 customers being overcharged over a period of 14 years.
If a client gets recommended to a fund, they can expect to pay higher fees initially if they have a small investment. If they add to their assets over time, by selling or inheriting a house or a business for example, they should qualify for a product with lower fees due to their larger investment amount.
What was TD’s reason for overcharging? It was not any more work for them. When they finally admitted it, they didn’t do so out of altruism, they did it because they knew they were guilty. It took them 2 years to report it to the OSC in the first place. So, they didn’t rush! The bank eventually agreed to repay more than $13.5 million to clients and $650,000 to the OSC as a settlement cost.
The other ‘errors’ the banks have been brought to account for is so-called ‘double dipping’, where customers were effectively charged fees twice on their investments. Clients had originally been sold an investment product with an embedded fee (or MER), then later as their account grew, they were moved to a part of the bank that charges a fee based on a percentage of what you have in your account. This should be a good thing for clients, as technically, the more money you have in your account, the less you should pay in fees. But if the new sales rep has been a bit lazy and doesn’t reorganise the old investment, the client can end up still paying the embedded fee and a fee on the new money added. Companies are supposed to get an embedded commission or a percentage of the account, not both.
The OSC found that between 2000 and 2014, TD clients had been overcharged by $1.7 million. Another bank, CIBC agreed to repay $73 million dollars to over 80,000 clients who had been charged double fees on their investments since 2002.
These banks scammed millions out of clients yet they expect us to believe that these huge amounts of money were simple ‘oversights’. They expect us to believe that somehow, these big corporations with their huge IT systems and Compliance departments missed these errors for 15 years!
Every product sold is checked by a branch manager and a compliance manager to check that everything is suitable. Why did nobody say anything? Simply, it suited them not to.
The banks aren’t working for you
Are the banks suddenly feeling ethical by voluntarily repaying overcharged fees? Of course they aren’t. If 2008 taught us anything it’s that the big banks don’t work for us. They claim to have cleaned up their act, then scandals such as these just serve to prove that they haven’t. They act as if they are untouchable and have a blatant disregard for their clients. They do what they like and assume that you are too naive and trusting to notice. They give you statements on your financial products which are long-winded and confusing. Don’t think that this is by accident. They want to keep you in the dark and they make you feel like you are stupid if you ask questions. How many more ways will Canadians be fleeced by an industry who simply does not serve the best interests of its clients?
Work with a financial planner who will put you first
The big banks won’t change; in fact, they do anything to resist it. If you want things to change, you need to bring it about yourself. It’s time to stop being apathetic and putting your trust in the big banks. Instead, take control and seek advice from a financial planner who truly works for you and represents your family’s best interests. I will tell you the truth. You pay me for the advice I provide, not for a product I’m trying to sell you. Whether you are rich or poor is of no significance; someone with $50k could have more complicated needs than someone with $500k and whether you’re the former or the latter, you will struggle in the present system that makes it hard for people with a small account to become wealthy and rips off the person with the big account. It’s your money, you need transparency and you need answers. I can help.
Call me for a complimentary 30-minute appointment to find out more. 306 535 2255 firstname.lastname@example.org
Kathy Waite says 100 years of academic research explains why your mutual fund isn't working consistently and why its so hard to pick the winners from the losers. Stop looking for the needle in the haystack and buy the haystack .
Watch my Youtube playlist to find out more
The retirement dream for many Canadians is to be able to live comfortably; to pay off the house, be able to travel and work only if they want to, not out of necessity. But the retirement reality is often very different. Many people haven’t saved enough to support themselves comfortably in retirement. We are all living longer, and facing the real possibility of outliving our retirement savings.
Planning for retirement is not what it was. Gone are the ‘job for life’ company pensions, confidence in assistance from the government and knowing that come your 65th year, you can retire.
Worryingly, around 50% of Canadians are concerned that they will not have enough income to be able to live comfortably in their retirement. 3 in 5 people have no idea about how much money they will need to live on and 47% of those aged 55-64 have no company pension provision. This is a ticking time bomb.
If you have invested for retirement, the chances are you will find that your investments aren’t yielding the returns required to live comfortably. Why? you may ask. Because your gains have probably been considerably reduced by hidden fees and costs. Most Canadians are generally unaware of what fees and costs they are paying and are often shocked and upset when they discover exactly how much their retirement nest egg has been reduced.
In 2016 the Canadian Securities Administrators (CSA) introduced the CRM2 regulation to force mutual fund companies, providers and financial dealers into showing investors exactly what they are paying in fees each year. This will help to you have a greater understanding of how your investments are working for you, and ultimately will allow you to take control of your financial future.
What fees am I paying?
The fees you have been paying are usually hidden in the small print in mutual fund fact documents and prospectuses, and hidden behind financial jargon like ‘embedded trailer fees.’ The ‘trailer fees,’ put simply, are commissions paid to sales representatives by mutual fund managers in return for recommending their fund to you.
These funds usually have some of the highest fees in the world, so this practise clearly does not represent the best interests of the investor. The sales representatives will often say they are independent, but their licences are usually sponsored by an insurance company, bank or dealer and they are incentivised to sell their products, so it’s not strictly true. The problem is that most people will trust those with ‘financial planning’ designations so they don’t tend to ask questions.
What does CRM2 mean for you?
Every year, your investment dealer or advisor must send you a report detailing the exact fees you will be paying and how much compensation you’re paying them. Whether you pay $100 or $10,000, you will know the exact amount.
Also, you will receive an annual report that gives a clear picture of how your investments are working for you. The report will detail your personal portfolio performance for the previous year and since opening your account. Before CRM2, firms were only required to provide you with information on the rate of return you could expect overall. This annual information will help you make sure that your investments are aligned with your best interests and long-term financial and personal goals.
Even though the regulation was introduced in the summer of 2016 , you may not be able to get the information right away, as most firms will most likely produce the reports on a calendar year basis. Most investors should expect to be able to access their reports from early 2017.
What does CRM2 mean for the financial industry?
It may seem like CRM2 puts pressure on financial dealers and advisors to prove that they are worth the fees clients are paying for their services, but aside from the requirement for enhanced reports, we should not lose sight of the fact that financial professionals should be helping clients understand their investments right from the start.
Advisors need to align their services and advice with their client’s goals. These goals are increasingly geared towards meeting personal non-financial life objectives. It’s all about forming strong relationships with clients to help them achieve their financial dreams. There needs to be a clear line drawn between offering a client advice that is going to work in their best interests, and merely selling them a financial product.
Most financial plans are a sales pitch disguised as advice. Someone knows what they want to sell you, and the financial plan will have the desired outcome; for them, not you!
If you are fed up about being kept in the dark or of being misinformed, contact me, I can help you!
The philosophy here at Your Net Worth Manager, is ‘plans before products.’ I will work with you to set goals for your financial future, help you to figure out a solution to your problems, and above all, tell you the truth. That is what makes me different. There’s no conflict of interest or hidden fees, just the right advice for you, when you need it.
Looking forward to 2017? Worried? Excited?
Call me to find out how to make the most of what you have.
Kathy Waite Fee only financial planner Regina Saskatchewan and across Canada
Responding to families concerns about the outcome of the US election, our seemingly wobbly Canadian economy , has made me realise 99% of what I do is help people make important decisions in the face of irreducible uncertainty.
Despite all the pretty forecasts and projections, no one has any idea what the future holds.
This week’s earth quakes in New Zealand remind me when we left England in 2004 those towns hit were ones we seriously considered living in, but we came to Saskatchewan instead, luckily! The operative word there being luck.
No one thought Brexit would happen , no one thought Trump would get in. Then, surprise! It did and he did.
Brexit, elections, earth quakes , what will carbon tax mean for our province, when will ( if ever ) the oil industry pick up and families feel secure again, reminders that we have less control than we would like over what happens in the world.
Uncertainty scares the bravest of us.
We don’t like not knowing what the future holds. In fact, we pay people to tell us stories about the future so we can pretend we know what will happen. Weather, economic, pollsters, financial forecasts.
TV channels like CNBC exist to fulfill this wish on a minute-by-minute basis. But the evidence is absolutely clear that trying to time the market based on what someone says on TV is a total waste of time. So why do so many people do it every day?
Because we would rather be certain and wrong about the future than admitting we have no idea and deal with those feelings.
But here is the reality: Uncertainty is reality. Everything else is just a made-up story.
So, among the many other questions these events have raised for me is :
How do we learn to live with it?
Separate the story from the reality. In this case, Trump is president-elect.That’s the reality.
Anything that goes beyond that is a story. Will he build a wall? Will he repeal the Affordable Care Act? Will he blow up the NAFTA agreement or approve pipelines ? What will that do to the economy and my investments .
Who knows, and the more we try to predict what will happen, the greater the anxiety. Stay focused on the reality.
Make a list. What can you control right now? The list won’t include big things like dealing with Russia. But you do have total control over sticking to your cash flow plan, planning your next vacation, how you treat your neighbour and not throwing your asset allocation out of the window because of something your heard on the TV . Anything that doesn’t appear on this list is out of your control so don’t stress yourself by focusing on it .
Keep calm and carry on . The track record for new presidents getting things done is pretty abysmal and I am not too worried about an earthquake on the good old prairies. Meet you down in the basement if the wind picks up though!
Kathy Waite Fee only financial planner, money ninja in Saskatchewan . Your Net Worth Manager , plans before products. Working for you not a huge companies hidden agenda . If you are feeling uncertain give me a call to see how I can help .
Kathy Waite fee only financial planner in Regina. Saskatchewan . Some people are doing RRSPs and they shouldn't be, are you?
Kathy Waite fee only financial planner, retirement income specialist , Saskatchewan and Canada . Money makeovers and portfolio second opinions . Myth buster , financial detective, money ninja
Please click above to play. The youtube link is as follows in case you have trouble https://youtu.be/r4qJZZzMkhs
Credit to Marie Engen for writing this down but I so agree!
I see many people who dont live for today and then never see tomorrow or their retirement.
Maybe I am being morbid with an acquaintance at 57 dead within 4 weeks of a cancer diagnosis and my Dad, normally so fit and healthy , a life long bike rider and chemical engineer at 75 not knowing who he is with Alzheimers fogging his brain up.
Its all about balancing now and then , contact me to find out how
We’ve all had times we’ve dreamed about our eventual retirement when we’ll have all the free time available to pursue whatever we want to do.
We don’t have the time to do everything while working full-time, so we have a long list of things we’d like to do later on.
But why wait until you retire? Here are five things you shouldn’t put off until retirement.
Travel is often number one on the list of activities people want to do when they retire. They will finally be free to see the sights they’ve dreamed of all these years.
But, why not make plans to go on that long awaited trip now? Travelling with your family can create a bond and memories that last a lifetime.
Many travel experiences are easier when you’re younger – and cheaper too.
It’s much more difficult to travel when you have certain health conditions and physical limitations. Even if you’re still healthy and in great shape you probably won’t have the same level of energy and endurance.
Older people tend to want more comfort – and that can be costly. You may not have the money if your portfolio takes a downturn, or living expenses are higher than expected.
2.) Downsize your home
One way to trim expenses is to sell your oversized home and move to a smaller, more efficient place now rather than waiting for retirement. Relocating to a more affordable area is also a great option. If your kids are out of the house, you don’t need the extra space, and costly home maintenance it taking over your weekends, why not downsize now?
Check out “active living” or “adult lifestyle” communities where ownership starts as low as age 45.
Not only can this slash your housing costs now, it’ll free up cash for you when you finally do retire.
Exercise is one activity that’s typically put off when we’re busy, but lack of exercise is a major cause of many chronic diseases to which we can become susceptible when we age. Incorporating an exercise program of at least 30 minutes a day leads to a healthier lifestyle once you retire.
Retired life will be more enjoyable if you’re not dealing with health problems, and medical expenses can be greatly reduced.
4.) Living on a reduced budget
Once your major expenses of children and home mortgage have disappeared, why not start living within your future means with a reduced budget that would reflect your lower retirement income?
Run the numbers. You can determine a realistic view of your cash flow and be prepared to make significant changes if you need to.
People tend to put off their hobbies and personal interests. They have a low priority when you’re busy with work.
Try out new hobbies or other activities to see if you find them enjoyable before you jump in whole-hog at your retirement.
If you wait you may find some activities harder to master.
Barry had always been interested in fine woodworking and was looking forward to this new hobby once he retired. But, as he got older, his eyesight started to deteriorate so he was no longer able to see the fine detail work clearly. He became frustrated and quit.
Don’t postpone your life until you retire. Making retirement your lifelong primary goal could end up in disappointment once you get there.
Make the best life you can right now and at retirement you’ll have a different kind of fun.
Kathy Waite Regina Saskatchewan, Fee only financial planner, retirement income specialist , cash flow ninja.
Here she explains how she keeps all the things she reads that are useful to clients collated neatly so they can access them when they want to
What I do is different , thats why people love it! Anything different takes a leap of faith to try sometimes. When you go and buy a car , couch or an ice cream you have something tangible in your hand. When you invest in yourself by buying a service its more unknown. What will this feel like? Will it work? Is this what I need?
Take a look at these comments from families just like you.
I also have a list of references you can contact and offer a money back guarantee.
So whats to lose?
Lets get started making the most of your future together. Youtube
Kathy Waite , Regina Saskatchewan Fee only financial planner on when is it good or not to RRSP
I was interviewed by the lovely Bev Hepting who teaches public speaking and got the chance to talk about what I do for clients , why and how I am different to financial service people who sell things. We had a laugh. Buffers a bit as she was in England but hopefully worth a watch for you. She also asked me for tips to help people be more confident public speaking which I have been doing for 25 years to groups.
My clients are busy busy so I keep lists for the of news, blogs and videos that may interest them. Monthly i send out the top features and also by topic. Retirement income , cash flow ideas but also some about quality of life. After all money is for doing things with so lets imagine!
Kathy Waite Retirement Income Specialist , how to make the most of your RRSPs, TFSAs and pensions. When can I retire?
Well I would be dancing like this! I am self employed so always owe .
Park the cheque into a saving account, not the black hole affectionately known as joint checking .
• RRSP contribution would get you another tax refund next year
• TFSA earns more tax-free investment income.
• Repaying credit card especially high interest ones
• Slim down a line of credit, mortgage or student loan
• Donating to a charity of choice and get a tax receipt
• Making a Registered Education Savings Plan (RESP) contribution get 20 to 30% grant and helps pay for the rising costs of education.
• Registered Disability Savings Plan (RDSP) for a special needs family member often gets dollar for dollar matching
• Leaving it in your saving account but shop for interest rates ( ask me how to get 2% plus)
• Paying an outstanding bill
•Building the emergency account
• Invest in your business
• Lending it at the prescribed rate to the low tax bracket spouse.
• Help an adult child stop paying rent and own a home
• Add to your retirement planning
• Experiences make memories plan a family trip or event
• Renovate home to save energy or increase value
• Investing in yourself , improving your career or education.
• Save it for the next tax bill!
• Start a Christmas gift fund.
20 ..........not so sensible ............take your sweet heart out for coffee and desert . people are more important than money